Amended in Senate June 16, 2015

California Legislature—2015–16 Regular Session

Assembly Bill No. 549

Introduced by Assembly Member Levine

February 23, 2015

An act to amend begin delete Section 5010.7 of end delete begin insert Sections 5003.4, 5005, 5009.1, 5010.7, 5080.18, and 5080.20 of, and to add Section 5010.3 to, end insert the Public Resources Code, relating to state parks.

LEGISLATIVE COUNSEL’S DIGEST

AB 549, as amended, Levine. State park begin delete system: revenue generation program: reports. end delete begin insert system. end insert

begin insert

Existing law authorizes the Department of Parks and Recreation to install or permit the installation of camping cabins within the units of the state park system if installation of camping cabins is consistent with the general plan of the unit.

end insert begin insert

This bill would authorize the department to acquire, install or permit the installation of, and operate or permit the operation of, camping cabins, parking facilities for recreational vehicles, and any associated access and public safety facilities, within the units of the state park system, if the installation and operation is consistent with the classification of the park system unit, and with the general plan of the unit, if one exists. The bill would authorize the department to enter into an agreement with a qualified nonprofit organization for those purposes.

end insert begin insert

Existing law authorizes the department to receive and accept in the name of the people of the state any gift, dedication, devise, grant, or other conveyance of title to or any interest in real property to be added or used in connection with the state park system and to receive and accept gifts, donations, contributions, or bequests of money and personal property to be used for state park purposes, subject to the approval of the Director of Finance, except as provided.

end insert begin insert

This bill would authorize the department to accept conditional gifts or bequests of money valued at $100,000 or less without approval from the Director of Finance, but would require the department to annually report those gifts or bequests to the Director of Finance.

end insert begin insert

Existing law authorizes the department to enter into an agreement to receive money from any entity for the maintenance or operation, on a nonprofit basis, of a designated state park unit or facility. Existing law requires the money received to be used to supplement existing resources for enhancing the maintenance and operation of the unit or facility, with priority given to preventing closure or reduced hours of service to the public.

end insert begin insert

This bill would authorize the department to enter into an agreement to receive money from any entity for the maintenance, operation, restoration, repair, or enhancement of a designated state park system unit or facility, would remove the priority given to preventing closure or reduced hours of service to the public, and would also authorize the department to provide free of charge access and use of park facilities to an entity that enters into this agreement.

end insert begin delete

The Department of Parks and Recreation has control of the state park system. Existing

end delete

begin insert Existing end insert law requires the department to develop a revenue generation program as an essential component of a long-term sustainable park funding strategy. Existing law establishes the State Park Revenue Incentive Subaccount in the State Parks and Recreation Fund with money available to the department for activities, programs, and projects, as provided, relating to the revenue generation program. Existing law requires the money to be spent in a specified way, including 50% of the total amount of revenues deposited into the subaccount generated by a park district to that district, as provided. Existing law requires the department to report to the Legislature annually on or before July 1 on the revenue distributed to each park district.

This bill would instead require the department to report to the Legislature annually on or before December 31.

begin insert

Existing law authorizes the department to collect fees, rents, and other returns for the use of any state park system area, the amounts of which are to be determined by the department.

end insert begin insert

This bill would require the department to develop a statewide fee policy for assessment of fees, as specified, to report to the Legislature on the statewide fee policy on or before December 31, 2016, to make its annual fee schedule publicly available on its Internet Web site, and to immediately update the fee schedule on its Internet Web site to reflect fee-rate changes.

end insert begin insert

Existing law authorizes the department to enter into competitively bid contracts with natural persons, corporations, partnerships, and associations for the construction, maintenance, and operation of concessions within units of the state park system.

end insert begin insert

This bill would require all renewals of those concession contracts to be subject to competitive bidding requirements.

end insert begin insert

Existing law requires every concessionaire to submit to the department its sales and use tax returns.

end insert begin insert

This bill would also require every concessionaire to, at the request of the department, provide an annual financial statement prepared or audited by a certified public accountant.

end insert begin insert

Existing law requires a concession contract entered into pursuant to specified provisions that is expected to involve a total investment or gross sales in excess of $500,000 to comply with certain other contract requirements.

end insert begin insert

This bill would impose those requirements on a concession contract that is expected to involve a total investment or gross sales in excess of $1,000,000.

end insert

Vote: majority. Appropriation: no. Fiscal committee:  begin delete no end delete begin insert yes end insert . State-mandated local program: no.

The people of the State of California do enact as follows:

SECTION 1.  

begin insert (a) end insert begin insert   end insert It is the intent of the Legislature to enact
changes in law necessary to facilitate and expedite implementation
of reforms recommended by the Parks Forward Commission to
ensure a vibrant and sustainable park system for all Californians
and for present and future generations. The changes to be enacted
include, but are not necessarily limited to, those that will facilitate
all of the following:

begin delete

(a)

end delete

begin insert (1) end insert  The organizational, administrative, and technological
changes needed at the Department of Parks and Recreation to
modernize the department’s processes, ensure efficiency and
accountability throughout the department, diversify the
department’s workforce, and better serve the needs of park visitors.

begin delete

(b)

end delete

begin insert (2) end insert  New public-private partnerships to provide improved
stewardship of state parks and the natural and cultural resources
they contain and to enhance programs and services for park visitors.

begin delete

(c)

end delete

begin insert (3) end insert  Enhanced park access for all Californians, and engagement
of younger generations through increased opportunities for
environmental and outdoor education in parks and for youth
leadership development.

begin delete

(d)

end delete

begin insert (4) end insert  Establishment of a stable and diversified funding structure,
including a more entrepreneurial and robust revenue generation
strategy.

begin insert

(b) (1) In its 2015 report, the California’s Parks Forward
Commission recommended expanding the availability of safe,
clean, and affordable cabins and similar overnight
accommodations in state and local parks as an important means
of providing equitable park access and building public support
for parks statewide.

end insert begin insert

(2) Although coastal parks are among California’s most loved
and visited parks, access to affordable cabins and other lower-cost
overnight accommodations in coastal parks is limited because of
high demand and limited supply.

end insert begin insert

(3) It is the intent of the Legislature that the California Coastal
Commission and the State Coastal Conservancy, in consultation
with the Department of Parks and Recreation and other
appropriate entities, develop a proposal describing how
unexpended fee revenue, assessed to mitigate the loss of affordable
overnight accommodations, in combination with other sources of
funding, including any public or philanthropic funds that may
become available, may be used to fund the identification,
development, and implementation of opportunities to expand
availability of affordable cabins and other similar overnight
accommodations, and associated public access and safety facilities
in coastal parks, including, but not necessarily limited to, state,
local, and regional parks.

end insert

begin insert

begin insert SEC. 2. end insert   

end insert

begin insert Section 5003.4 of the end insert begin insert Public Resources Code end insert begin insert is
amended to read: end insert

5003.4.  

begin insert (a) end insert begin insert   end insert There shall be provided in each state park in which
camping is permitted those parking facilities for recreational
vehicles, as defined by Section 18010 of the Health and Safety
Code, that can be accommodated within the park consistent with
the objective of providing camping facilities for the public in these
parks. In addition, the Department of Parks and Recreation may
begin delete install end delete begin insert acquire, install end insert or permit the installation begin delete of end delete begin insert of, and operate
or permit the operation of, end insert camping cabins, as defined by Section
18862.5 of the Health and Safety Code, begin insert parking facilities for
recreational vehicles, and any associated access and public safety
facilities, end insert within the units of the state park begin delete system if end delete begin insert system, if the end insert
installation begin delete of camping cabins is consistent with end delete begin insert and operation is
consistent with the classification of the park system unit and with end insert
the general plan of the begin delete unit. end delete begin insert unit, if one exists. end insert

begin insert

(b) The department may enter into agreements with qualified
nonprofit organizations, as defined in subdivision (g) Section
5080.42, for acquisition, installation, and operation of camping
cabins or parking facilities for recreational vehicles, and any
associated access and public safety facilities, as described in
subdivision (a), within units of the state park system. The
agreements shall be subject to the requirements of Section 5080.42.

end insert

begin insert

begin insert SEC. 3. end insert   

end insert

begin insert Section 5005 of the end insert begin insert Public Resources Code end insert begin insert is amended
to read: end insert

5005.  

(a) The department may receive and accept in the name
of the people of the state any gift, dedication, devise, grant, or
other conveyance of title to or any interest in real property,
including water rights, roads, trails, begin delete and end delete rights-of-way, begin insert buildings,
facilities, and other improvements, end insert to be added to or used in
connection with the park system. It may receive and accept gifts,
donations, contributions, or bequests of money to be used in
acquiring title to or any interest in real property, or in improving
it as a part of or in connection with the State Park System, or to
be used for any of the purposes for which the department is created.
It may also receive and accept personal property for any purpose
connected with the park system.

(b) Subdivision (a) is subject to the requirements and exceptions
set forth in Section 11005 of the Government begin delete Code. end delete begin insert Code, except
that the department may accept conditional gifts or bequests of
money valued at one hundred thousand dollars ($100,000) or less
without approval from the Director of Finance. end insert

begin insert

(c) The department shall annually report to the Director of
Finance all conditional gifts or bequests of money valued at one
hundred thousand dollars ($100,000) or less that it accepts or
receives pursuant to subdivision (b).

end insert

begin insert

begin insert SEC. 4. end insert   

end insert

begin insert Section 5009.1 of the end insert begin insert Public Resources Code end insert begin insert is
amended to read: end insert

5009.1.  

(a) The department may enter into an agreement to
accept funds from any person, corporation or other business entity,
or organization for the begin delete maintenance or end delete begin insert maintenance, end insert operation, begin delete on
a nonprofit basis, end delete begin insert restoration, repair, or enhancement end insert of a
designated state park system unit or facility. Any funds so received
shall be deposited in a separate account in the State Park
Contingent Fund. The funds received shall supplement existing
resources for the begin delete purpose of enhancing the maintenance or
operation end delete begin insert maintenance, operation, restoration, repair, or
enhancement end insert of the unit or begin delete facility, with priority given to
preventing closure or reduced hours of service to the public. end delete
begin insert facility. end insert The department and the sponsoring person, entity, or
organization shall specify in the agreement the level of service
begin delete which end delete begin insert that end insert is to be performed.

(b) The department may enter into an agreement to accept
services from any person, corporation or other business entity, or
organization for the cleanup, repair, or enhancement of any
designated state park system unit or facility. Under the direction
of the department, these services shall supplement existing staff
resources for the purpose of enhancing the maintenance and
operation of the unit or facility.

(c) The director may authorize the erection of an appropriate
sign in recognition of the sponsorship, consistent with existing
law and with the rules and regulations of the department regarding
signs in units of the state park system.

begin insert

(d) The department may provide free of charge access to, and
use of, park facilities to entities that have entered into agreements
as described in this section.

end insert

begin insert

begin insert SEC. 5. end insert   

end insert

begin insert Section 5010.3 is added to the end insert begin insert Public Resources Code end insert begin insert ,
to read: end insert

begin insert

begin insert 5010.3. end insert   

(a) The department shall develop a statewide policy
for assessment of fees pursuant to Section 5010 that balances the
state’s goal of sustainable revenue generation to support state
parks, with the state’s goal of preserving affordable public access
to public lands, including, but not limited to, lands in the coastal
zone. The fee policy shall, at a minimum, do all of the following:

(1) To the extent feasible, ensure that fees do not serve as a
deterrent to equitable public access and are comparable to fees
charged for other similar services.

(2) Reflect the appropriate role of user fees as part of an overall,
equitable, and sustainable revenue generation strategy that
includes a proper balance of public funding and earned revenue
to support state parks.

(3) Be based on uniform principles that reflect the different
levels of services provided at different parks, the department’s
goals for service-based budgeting, and the best practices for
pricing that align policy goals with visitor expectations. To the
extent feasible, fees should be commensurate with the benefits and
services provided to visitors.

(4) Describe the process for setting and approving all fee-rate
changes.

(5) Provide for public accountability and transparency, and
advance public notice for proposed changes to fee schedules.

(b) The department may consult with the National Park Service
for guidance in developing a statewide fee policy.

(c) The department shall conduct public workshops on
development of the statewide fee policy and may seek assistance
with scheduling and conducting of the workshops from the State
Park and Recreation Commission.

(d) (1) The department shall report to the Legislature on the
statewide fee policy on or before December 31, 2016.

(2) The report required pursuant to paragraph (1) shall be
submitted in compliance with Section 9795 of the Government
Code.

(3) This subdivision shall be inoperative on December 31, 2020,
pursuant to Section 10231.5 of the Government Code.

(e) The department shall make its fee schedule publicly available
on the department’s Internet Web site and immediately update the
fee schedule to reflect any fee-rate changes.

(f) It is the intent of the Legislature that the department, in
addition to developing a statewide fee policy, provide convenient
and cost effective options for fee payment and collection by
expanding and integrating fee collection methodologies across
the state park system and offering modern fee collection and
payment options that include, but are not necessarily limited to,
cash, credit card, and smart phone technology, if appropriate.

(g) The department may also implement additional options,
including hourly fees, regional passes, and promotional free-day
annual events, and explore opportunities for collaborative fee
arrangements and passes with other federal, state, and local park
agencies, if appropriate.

end insert

begin delete SEC. 2. end delete
begin insert SEC. 6. end insert   

Section 5010.7 of the Public Resources Code is
amended to read:

5010.7.  

(a) The department shall develop a revenue generation
program as an essential component of a long-term sustainable park
funding strategy. On or before July 1, 2014, and annually thereafter,
the department shall assign a revenue generation target to each
district under the control of the department. The department shall
develop guidelines for districts to report the use of funds generated
by the revenue generation program, and shall post information and
copies of the reports on its Internet Web site.

(b) The California State Park Enterprise Fund is hereby created
in the State Treasury as a working capital fund, and the revenue
shall be available to the department upon appropriation by the
Legislature for capital outlay or support expenditures for revenue
generating investments in state parks. These investments may
include, but are not limited to, planning and implementation of a
statewide electronic fee collection system that includes installation
of modern fee collection equipment and technologies to enhance
collection of state park users fees and that will enable park users
to pay fees with commonly used forms of electronic fund transfers,
including, but not limited to, credit and debit card transactions,
and other park revenue generating projects, and shall be available
for encumbrance and expenditure until June 30, 2019, and for
liquidation until June 30, 2021.

(1) The department shall prepare guidelines for districts to apply
for funds for capital projects that are consistent with this
subdivision.

(2) The guidelines prepared pursuant to this subdivision shall
require all of the following:

(A) A clear description of the proposed use of funds.

(B) A timeframe of implementation of the capital project.

(C) A projection of revenue, including annual income, fees, and
projected usage rates.

(D) A projection of costs, including design, planning,
construction, operation, staff, maintenance, marketing, and
information technology.

(E) A market analysis demonstrating demand for the project.

(F) A projected rate of return on the investment.

(c) The revenue generated by the revenue generation program
developed pursuant to subdivision (a) shall be deposited into the
State Parks and Recreation Fund. Revenue identified as being in
excess of the revenue targets shall be transferred to the State Parks
Revenue Incentive Subaccount, established pursuant to Section
5010.6, on or before June 1, annually.

(d) Moneys transferred to the State Parks Revenue Incentive
Subaccount pursuant to subdivision (c) shall be expended as
follows:

(1) (A) The department shall allocate 50 percent of the total
amount of revenues deposited into the State Parks Revenue
Incentive Subaccount pursuant to subdivision (c), generated by a
park district to that district if the amount of revenues generated
exceeds the targeted revenue amount prescribed in the revenue
generation program. The revenues to be allocated to a park district
that fails to achieve the revenue target shall remain in the
subaccount.

(B) With the approval of the director, each district shall use the
funds it receives pursuant to this section to improve the parks in
that district through revenue generation programs and projects and
other activities that will assist in the district’s revenue generation
activities, and the programs, projects, and other activities shall be
consistent with the mission and purpose of each unit and with the
plan developed for the unit pursuant to subdivision (a) of Section
5002.2.

(C) The department shall report to the Legislature, commencing
on July 1, 2014, and annually on or before each December 31
thereafter, on the revenue distributed to each district pursuant to
this section.

(2) The department shall use 50 percent of the funds deposited
into the State Parks Revenue Incentive Subaccount pursuant to
subdivision (c) for the following purposes:

(A) To fund the capital costs of construction and installation of
new revenue and fee collection equipment and technologies and
other physical upgrades to existing state park system lands and
facilities.

(B) For costs of restoration, rehabilitation, and improvement of
the state park system and its natural, historical, and visitor-serving
resources that enhance visitation and are designed to create
opportunities to increase revenues.

(C) For costs to the department to implement the action plan
required to be developed by the department pursuant to Section
5019.92.

(D) Pursuant to subdivision (c) of Section 5010.6, for
expenditures to support revenue generation projects that include,
but are not limited to, staffing kiosks, campgrounds, and parking
lots.

(e) The funds generated by the revenue generation program
shall not be used by the department to expand the park system,
unless there is significant revenue generation potential from such
an expansion.

(f) Notwithstanding Section 5009, moneys received by the
department from private contributions and other public funding
sources may also be deposited into the California State Park
Enterprise Fund and the State Parks Revenue Incentive Subaccount
for use for the purposes of subdivision (c) and subdivision (d).

(g) The department shall provide all relevant information on its
Internet Web site concerning how funds in the State Parks and
Recreation Revenue Incentive Subaccount and the California State
Park Enterprise Fund are spent.

(h) The department may recoup its costs for implementing and
administering the working capital from the fund.

begin insert

begin insert SEC. 7. end insert   

end insert

begin insert Section 5080.18 of the end insert begin insert Public Resources Code end insert begin insert is
amended to read: end insert

5080.18.  

All concession contracts entered into pursuant to this
article shall contain, but are not limited to, all of the following
provisions:

(a) (1) The maximum term shall be 10 years, except that a term
of more than 10 years may be provided if the director determines
that the longer term is necessary to allow the concessionaire to
amortize improvements made by the concessionaire, to facilitate
the full utilization of a structure that is scheduled by the department
for replacement or redevelopment, or to serve the best interests of
the state. The term shall not exceed 20 years without specific
authorization by statute. begin insert Except as provided in Section 5080.16,
all renewals of concession contracts pursuant to this paragraph
shall be subject to competitive bidding requirements. end insert

(2)  The maximum term shall be 50 years if the concession
contract is for the construction, development, and operation of
multiple-unit lodging facilities equipped with full amenities,
including plumbing and electrical, that is anticipated to exceed an
initial cost of one million five hundred thousand dollars
($1,500,000) in capital improvements in order to begin operation.
The term for a concession contract described in this paragraph
shall not exceed 50 years without specific authorization by statute.
begin insert Except as provided in Section 5080.16, all renewals of concession
contracts pursuant to this paragraph shall be subject to competitive
bidding requirements. end insert

(3) Notwithstanding paragraph (1), a concession agreement at
Will Rogers State Beach executed prior to December 31, 1997,
including, but not limited to, an agreement signed pursuant to
Section 25907 of the Government Code, may be extended to exceed
20 years in total length without specific authorization by statute,
upon approval by the director and pursuant to a determination by
the director that the longer term is necessary to allow the
concessionaire to amortize improvements made by the
concessionaire that are anticipated to exceed one million five
hundred thousand dollars ($1,500,000) in capital improvements.
Any extensions granted pursuant to this paragraph shall not be for
more than 15 years.

(b) Every concessionaire shall submit to the department all sales
and use tax begin delete returns. end delete begin insert returns and, at the request of the department,
provide an annual financial statement prepared or audited by a
certified public accountant. end insert

(c) Every concession shall be subject to audit by the department.

(d) A performance bond shall be obtained and maintained by
the concessionaire. In lieu of a bond, the concessionaire may
substitute a deposit of funds acceptable to the department. Interest
on the deposit shall accrue to the concessionaire.

(e) The concessionaire shall obtain and maintain in force at all
times a policy of liability insurance in an amount adequate for the
nature and extent of public usage of the concession and naming
the state as an additional insured.

(f) Any discrimination by the concessionaire or his or her agents
or employees against any person because of the marital status or
ancestry of that person or any characteristic listed or defined in
Section 11135 of the Government Code is prohibited.

(g) To be effective, any modification of the concession contract
shall be evidenced in writing.

(h) Whenever a concession contract is terminated for substantial
breach, there shall be no obligation on the part of the state to
purchase any improvements made by the concessionaire.

begin insert

begin insert SEC. 8. end insert   

end insert

begin insert Section 5080.20 of the end insert begin insert Public Resources Code end insert begin insert is
amended to read: end insert

5080.20.  

A contract, including a contract entered into on lands
operated pursuant to an agreement entered into under Article 2
(commencing with Section 5080.30), that is expected to involve
a total investment or estimated annual gross sales in excess of begin delete five
hundred thousand dollars ($500,000), end delete begin insert one million dollars
($1,000,000), end insert shall not be advertised for bid, negotiated,
renegotiated, or amended in any material respect unless and until
all of the following requirements have been complied with:

(a)  The commission has reviewed the proposed services,
facilities, and location of the concession and determined that they
meet the requirements of Sections 5001.9 and 5080.03 and are
compatible with the classification of the unit in which the
concession will be operated.

(b)  The Legislature has reviewed and approved the proposed
concession as part of the annual budget process or the requirements
of subdivision (c) have been complied with. A proposed concession
shall not be submitted for review by the Legislature until the
commission has made its determination pursuant to subdivision
(a), unless deferring review by the Legislature would be adverse
to the interests of the public, in which case the Legislature’s review
may precede the commission’s determination.

(c)  Following enactment of the Budget Bill, the board has
determined that the proposed concession could not have been
presented to the Legislature for review and approval in the course
of its consideration of the Budget Bill, or the proposed concession
was reviewed and approved but it is necessary to revise the terms
of the invitation to bid or the contract in a material respect, and
that it would be adverse to the interests of the public to defer that
review and approval to a time when the Legislature next considers
a Budget Bill. Upon making that determination, the board may
review and approve the proposed concession, or any revision
thereof, after giving at least 20 days’ written notice to the Chair
of the Joint Legislative Budget Committee and to the chair of the
fiscal and appropriate policy committees of its intended action.
All actions taken by the board pursuant to this subdivision shall
be reported to the Legislature in the next Governor’s Budget.

(d)  The proposed concession is accompanied with
documentation sufficient to enable the Legislature, the commission,
and the board, as the case may be, to ascertain whether the
concession will conform to the requirements of this article and, as
to the Legislature and the board, to evaluate fully all terms on
which the concession is proposed to be let, including the rent and
other returns anticipated to be received.