BILL ANALYSIS Ó ----------------------------------------------------------------- |SENATE RULES COMMITTEE | SB 633| |Office of Senate Floor Analyses | | |1020 N Street, Suite 524 | | |(916) 651-1520 Fax: (916) | | |327-4478 | | ----------------------------------------------------------------- UNFINISHED BUSINESS Bill No: SB 633 Author: Pavley (D) Amended: 8/4/14 Vote: 21 PRIOR VOTES NOT RELEVANT ASSEMBLY FLOOR : 75-0, 8/19/14 - See last page for vote SUBJECT : State Parks SOURCE : Author DIGEST : This bill 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). Assembly Amendments delete the Senate version of this bill relating to the California Environmental Quality Act and instead add the current language relating to state parks. ANALYSIS : Existing law: 1.Establishes the California State Park system and vests the Department of Parks and Recreation (DPR) with control of the state park system and responsibility for administering, CONTINUED SB 633 Page 2 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. This bill: 1.States legislative findings and declarations regarding recent and ongoing efforts to secure the financial base of 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 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 CONTINUED SB 633 Page 3 by the Air Resources Board (commonly known as cap and trade). Repeals this requirement 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. Repeals this requirement 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. 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. Repeals this requirement on January 1, 2019. States legislative intent that DPR in implementing this section not compete with existing concession contracts that provide CONTINUED SB 633 Page 4 comparable food and beverage services to the public. Background 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 system viability. A final report is anticipated by the end of 2014. The Commission, created in 1927 as the State Park 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 system, and recommending a comprehensive recreation policy for the state. State Parks Protection Fund/Parks Pass Purchase . 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 150 Years Commemorative Vehicle Use Annual 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 for any amount deposited into the California State Parks Protection Fund 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. FISCAL EFFECT : Appropriation: No Fiscal Com.: Yes Local: No 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. SUPPORT : (Verified 8/19/14) California Park and Recreation Society California State Parks Foundation CONTINUED SB 633 Page 5 California Travel Association East Bay Regional Parks State Park Partners Coalition Trust for Public Land Watershed Conservation Authority Watershed Conservation Authority OPPOSITION : (Verified 8/19/14) Department of Finance ARGUMENTS IN SUPPORT : The Watershed Conservation Authority (WCA) writes, "This bill requires the Department of Parks and Recreation to engage in various cost savings measures through the use of creative partnerships and other innovative tools to help stabilize and broaden the department's financial base. "The WCA is particularly supportive of the provisions in this bill that call for a better integration of local populations in state parks through the offering of regional passes and the notion of expanding access to seasonal passes through private vendors. The WCA is also supportive of the provisions of this bill that establish a new pilot project for mobile food and beverage concessions that may help establish parks as a destination for local populations. Requiring the department to prepare a report on its current energy costs and the inadequacy of its energy infrastructure to demonstrate the need for Cap & trade investment in energy efficiency improvements is also a good opportunity for future funding opportunities. "As the Legislature is fully aware, State Parks has undergone some turbulent times in recent years. Strong direction and guidance from the Legislature to assist the department to better adapt to changes in the built and natural environments to insure relevancy is critical and this bill moves in that direction." ARGUMENTS IN OPPOSITION : The Department of Finance opposes this bill for the following reasons: This bill could result in decreased services to the public to the extent that the pilot project reduces the funds available to support the operations and maintenance of parks; the bill directs the Department to establish the program from available appropriated funds. CONTINUED SB 633 Page 6 The bill is unnecessary. Nothing in existing law precludes the Department from establishing a pilot program for mobile food and beverage concessions or from expanding annual regional park passes. Furthermore, the Department has already performed an energy benchmarking report pursuant to Governor's Executive Order B-18-12 to reduce energy consumption and is currently processing contracts with vendors to sell park passes. The Parks Forward Commission (Parks Forward), an independent commission appointed in 2013, is charged with conducting a process designed to address the financial, operational, and cultural challenges facing the Department to ensure the system's long-term viability. An updated draft report with recommendations for a long-term plan was released in April 2014, with a final report anticipated in the fall of 2014. It would be prudent to allow the Department to develop an overall strategic plan before requiring specific revenue generating activities. Parks Forward, a 12-member independent panel of experts, citizens, advocates, and leaders, was created in 2013 to conduct an assessment of the State Park System and recommend substantial improvements. The commission's goal is to design and adopt a long-term plan for a financially sustainable State Park System that better meets the needs of all Californians. An updated draft report has been released and will be available for public comment through the summer with a final report anticipated to be adopted in the fall of 2014. ASSEMBLY FLOOR : 75-0, 8/19/14 AYES: Achadjian, Alejo, Allen, Ammiano, Bigelow, Bloom, Bocanegra, Bonilla, Bonta, Bradford, Brown, Buchanan, Ian Calderon, Campos, Chau, Chávez, Chesbro, Conway, Cooley, Dababneh, Dahle, Daly, Dickinson, Eggman, Fong, Fox, Frazier, Beth Gaines, Garcia, Gatto, Gonzalez, Gordon, Gorell, Gray, Grove, Hagman, Hall, Harkey, Roger Hernández, Holden, Jones-Sawyer, Levine, Linder, Logue, Lowenthal, Maienschein, Medina, Melendez, Mullin, Muratsuchi, Nazarian, Nestande, Olsen, Pan, Patterson, Perea, John A. Pérez, V. Manuel Pérez, Quirk, Quirk-Silva, Rendon, Ridley-Thomas, Rodriguez, Salas, Skinner, Stone, Ting, Wagner, Waldron, Weber, Wieckowski, Wilk, Williams, Yamada, Atkins CONTINUED SB 633 Page 7 NO VOTE RECORDED: Donnelly, Gomez, Jones, Mansoor, Vacancy RM:e 8/19/14 Senate Floor Analyses SUPPORT/OPPOSITION: SEE ABOVE **** END **** CONTINUED