BILL ANALYSIS Ó ----------------------------------------------------------------- | | | SENATE COMMITTEE ON NATURAL RESOURCES AND WATER | | Senator Fran Pavley, Chair | | 2013-2014 Regular Session | | | ----------------------------------------------------------------- BILL NO: SB 633 HEARING DATE: August 21, 2014 AUTHOR: Pavley URGENCY: No VERSION: August 4, 2014 CONSULTANT: Bill Craven DUAL REFERRAL: No FISCAL: Yes SUBJECT: State Parks. BACKGROUND AND EXISTING LAW The California Department of Parks and Recreation (DPR), now celebrating its 150th anniversary, is vested 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. DPR is also responsible for protecting the state park system from damage and preserving the peace. A series of recent statutory changes augmented the department's authority 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. Those statutory changes also established a revenue generation program, added ex-officio legislative members to the California State Parks and Recreation Commission, and established a moratorium on park closures (that would be extended by AB 2150 (Rendon) that is now pending in the Senate). PROPOSED LAW This bill makes several relatively modest changes to the ongoing efforts at the department to establish a successful revenue generation program in ways that are consistent with the ongoing Parks Forward Commission's recommendations. It also would establish a separate line item for the Commission, have the department analyze its energy infrastructure needs to determine possible eligibility for access to cap and trade auction 1 revenues, and increase public participation in making recommendations for spending revenues generated as part of the state parks license plate fund. Specifically, this bill would 1) State legislative findings and declarations regarding recent and ongoing efforts to stabilize and improve 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, rely on the 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. The bill would have DPR create one or more projects per year to be funded by the voluntary tax-deductible contributions. The projects would be selected through a process involving public input, and would involve one or more public hearings to be held by the Commission along with relevant information posted on its Internet Web site. Eligible projects would 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). This section would sunset on January 1, 2020. 5) States legislative intent to increase opportunities for DPR to sell park passes through vendors. DPR has existing authority to sell park passes through vendor contracts, and the bill requires DPR to report to the Legislature on or before July 1, 2016, on its activities to increase such opportunities. This section would also sunset on January 1, 2020. 2 6) Requires DPR on or before December 31, 2015, and 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. DPR shall determine the regions served by the passes. The bill states that the recent regional passes created by DPR such as 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) 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. The bill requires DPR to submit a report to the Legislature on the results of the pilot program on or before January 1, 2018. This section would sunset in 2019. There is a statement of intent that DPR in implementing this section will not compete with existing concession contracts that provide comparable food and beverage services to the public. ARGUMENTS IN SUPPORT According to the author, the purpose of this bill is to continue the bi-partisan work and the close co-operation of the Assembly and the Senate regarding budget and policy reforms at DPR. All of the provisions in this bill, which passed in the Assembly by a vote of 75-0, may be viewed in that light. Three of the provisions (food trucks, new regional passes, and vendor sales of regional passes) build on recommendations of the Parks Forward Commission and are designed to broaden the financial base of the department in ways that are consistent with its overall responsibilities and mission. The energy report is also designed to broaden the financial base of the department by determining if it is eligible to request auction revenues for some of its energy-related infrastructure needs. The budget line item for the Commission is intended to improve the fiscal transparency of that entity so that the Legislature can determine how much money the Commission spends and whether that amount is adequate or not. Supporters uniformly agree that increasing the number of regional passes will benefit the public by allowing access to the parks in specified regions at considerable savings compared 3 to an annual pass. Other supporters point out that the bill continues the progress at DPR in using modern technology to sell passes, innovate through the use of food trucks, and analyze energy infrastructure needs. ARGUMENTS IN OPPOSITION The Department of Finance is concerned about costs to the department in implementing the bill even though the bill requires that the department would use funds already appropriated to it. The funds would come from the revenue generation subaccount which was recently appropriated several million dollars in the most recent budget. SUPPORT California State Parks and Recreation California Travel Association State Park Partners Coalition Watershed Conservation Authority California Park and Recreation Society East Bay Regional Parks Watershed Conservation Authority Trust for Public Land OPPOSITION Department of Finance 4