BILL ANALYSIS Ó SB 633 Page 1 SENATE THIRD READING SB 633 (Pavley) As Amended August 4, 2014 Majority vote SENATE VOTE :Vote not relevant NATURAL RESOURCES APPROPRIATIONS 13-0 ----------------------------------------------------------------- | | (vote not |Ayes:|Gatto, Bocanegra, | | |relevant) | |Bradford, | | | | |Ian Calderon, Campos, | | | | |Eggman, Gomez, Holden, | | | | |Linder, Pan, Quirk, | | | | |Ridley-Thomas, Weber | |-----+--------------------------+-----+--------------------------| | | | | | ----------------------------------------------------------------- SUMMARY : Enacts several programmatic changes designed to reduce energy costs, increase revenue generation, and enhance visitor services at state parks, and requires separate tracking of the budget of the State Parks and Recreation Commission (Commission). Specifically, this bill : 1)States legislative findings and declarations regarding recent and ongoing efforts to secure the financial base of the Department of Parks and Recreation (DPR), and clarifying that provisions of this bill regarding pilot projects for sales of park passes through vendors, creation of additional regional passes, and for mobile food and beverage concessions, are based on existing authority of DPR. 2)Requires the Commission's costs to be reflected separately in the Governor's annual proposed budget to increase transparency. 3)States legislative intent that the Commission and DPR cooperate to increase public support and participation in the voluntary tax check-off contribution program for state parks by soliciting public input into how the contributions should be spent. Requires the Commission and DPR to create one or more projects per year to be funded by the voluntary tax-deductible contributions. Requires that the projects funded be selected through a process involving public input, including one or more public hearings to be held by the Commission, and requires that DPR post information about the SB 633 Page 2 selection process and chosen projects on its Internet Web site. Provides that the projects may include, but are not limited to, the repair, preservation, restoration, or rehabilitation of natural or cultural resources, and programs that facilitate increased park visitation by underserved communities. 4)Requires DPR to report to the Legislature on or before July 1, 2015, on its energy costs, projects that could reduce those costs and potential energy-related infrastructure projects that may be eligible for funding from revenues that may be generated through a market-based compliance mechanism adopted by the Air Resources Board (commonly known as cap and trade). Provides that this section shall sunset on January 1, 2020. 5)States legislative intent to increase opportunities for DPR to sell park passes through vendors. Clarifies that DPR has authority to increase opportunities to sell park passes through vendor contracts, and requires DPR to report to the Legislature on or before July 1, 2016, on its activities to increase such opportunities. Provides that this section shall sunset on January 1, 2020. 6)Requires DPR on or before December 31, 2015, from available appropriated funds, to establish a minimum of two additional regional park passes that are available for purchase through DPR's Internet Web site, park offices, or other designated vendors. States legislative findings and declarations that regional passes in the Big Sur-Monterey Bay region, the Lake Tahoe region, north coast beaches, or other appropriate regions may be determined by DPR to be suitable for additional regional passes. States legislative intent that DPR create regional passes to serve visitors interested in state parks with a shared theme or within a region and to simplify and facilitate fee collection from frequent park visitors. States that the Surf Explorer Vehicle Day Use annual pass, the Historian Passport Day Use Admissions annual pass, and the California Park Experience Vehicle Day Use annual pass may serve as useful models for future regional passes. 7)Adds to the conditions upon which DPR may renegotiate a concessions contract, if the services provided pursuant to the contract will have minimal impacts on state park resources, are inherently mobile or transitory in nature, and do not occupy a state-owned structure. Provides that such services may include but are not limited to mobile food and beverage services. SB 633 Page 3 8)Requires DPR until January 1, 2018, and from available appropriated funds, to establish a pilot program for mobile food and beverage services in multiple state parks, as feasible. Requires DPR to submit a report to the Legislature on the results of the pilot program on or before January 1, 2018. Sunsets this section effective January 1, 2019. States legislative intent that DPR in implementing this section not compete with existing concession contracts that provide comparable food and beverage services to the public. EXISTING LAW : 1)Establishes the California State Park system and vests DPR with control of the state park system and responsibility for administering, protecting, developing, and interpreting state parks for the use and enjoyment of the public. Requires DPR to protect the state park system from damage and to preserve the peace therein. 2)Authorizes DPR to collect fees, rents, and other returns for the use of state parks with amounts to be determined by DPR, to sell annual and regional passes, and to enter into concession contracts, subject to specified conditions. FISCAL EFFECT : According to the Assembly Appropriations Committee, additional General Fund costs to DPR to establish mobile food and beverage pilot projects of up to $170,000 annually for three years. All other costs are minor and absorbable. COMMENTS : The purpose of this bill is to encourage and strengthen ongoing efforts by DPR, the Commission, and the Parks Forward Commission, to develop a broader financial base for state parks, consistent with the mission of parks. Specifically, this bill calls for a pilot program and other initiatives to be implemented by DPR, including the following: 1) a report to the Legislature on DPR's energy costs, projects that would reduce those costs, and potential energy-related infrastructure projects that may be eligible for funding from cap and trade revenues; 2) a report to the Legislature on activities undertaken by DPR to increase the sale of park passes through private vendors; 3) creation of at least two additional regional park pass options available for purchase by the public; 4) a pilot program for mobile food and beverage services in multiple state parks; and 5) a joint project with the Commission to solicit SB 633 Page 4 public input on projects to be funded with revenues received from voluntary contributions to the tax return check-off program for state parks. In 2013, the Parks Forward Commission was appointed to conduct a year-long process to make recommendations to address the financial, operational, and cultural challenges necessary for long-term sustainability of California's state park system. A second draft of the report was released on July 30th and a final report is anticipated by November of 2014. The California State Park and Recreation Commission was created in 1927. The Commission has specific authorities and responsibilities, which include the approval of general plans for park units, classifying and naming park units, establishing general policies for the administration, protection and development of the state park system, providing input on deferred maintenance priorities, providing opportunities for public input, and recommending a comprehensive recreation policy for the state. As a component of the California State Park Stewardship Act of 2012 (AB 1589 (Huffman), Chapter 533), the California State Parks Protection Fund was established to provide California taxpayers the opportunity to purchase a California State Parks pass via their state income tax return and to designate a portion of their state tax refund for a voluntary contribution to support the preservation of state parks. Taxpayers can make a charitable contribution deduction to state parks for any amount in excess of the price of the State Park Annual Pass received, for the year in which the voluntary contribution is made. This program generated $396,921 in 2013 and $287,547 in 2014. This bill would encourage greater public participation in the tax return check-off program by allowing public input into the selection process for projects to be funded from the contributions. Projects eligible for funding would include projects to preserve or restore natural and cultural state park resources, and to facilitate increased park visitation by underserved communities. The creation and marketing of additional regional park passes, sales of park passes through retail vendors, and the addition of mobile food and beverage concessions are all among the recommendations proposed by the Parks Forward Commission in its draft report as means of enhancing revenue generation and improving public services and visitation in state parks. SB 633 Page 5 Energy costs are a significant cost of operations and maintenance at state parks. This bill would require DPR to do an analysis of ways to reduce energy costs, including energy saving infrastructure projects that could potentially be eligible for funding with cap and trade revenues. Such projects could have multiple benefits by reducing park operating costs, conserving energy, and potentially leading to reduced greenhouse gas emissions. Natural resources protected by state parks, such as forests, help sequester carbon, but can also be a source of carbon emissions in the event of forest fires. Examples of deferred maintenance projects at state parks might include energy conserving structural retrofits, as well as forest management projects to reduce fuel loading and the risk of catastrophic forest fires. This bill was substantially amended in the Assembly to change it from a bill that previously dealt with the California Environmental Quality Act, as passed by the Senate, to the current version which relates to state parks. Analysis Prepared by : Diane Colborn / W., P. & W. / (916) 319-2096 FN: 0004761