Amended in Senate June 30, 2015

Amended in Senate June 16, 2015

California Legislature—2015–16 Regular Session

Assembly BillNo. 549


Introduced by Assembly Member Levine

begin insert

(Coauthor: Assembly Member Rendon)

end insert

February 23, 2015


An act to amend Sections 5003.4, 5005, 5009.1,begin insert 5009.2,end insert 5010.7, 5080.18, and 5080.20 of, and to add Section 5010.3 to, the Public Resources Code, relating to state parks.

LEGISLATIVE COUNSEL’S DIGEST

AB 549, as amended, Levine. State park system.

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.

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.

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 realbegin delete propertyend deletebegin insert property, including water rights, roads, trails, and rights-of-way,end insert to be added or used in connection with the state parkbegin delete system and to receive and accept gifts, donations, contributions, or bequests of money and personal property to be used for state park purposes,end deletebegin insert system,end insert subject to the approval of the Director of Finance, except as provided.

This bill wouldbegin delete 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 deletebegin insert include buildings, facilities, and other improvements to the types of interests that the department may receive to be used in connection with the state park system.end 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.

This bill would authorize the department to enter into an agreement to receivebegin delete moneyend deletebegin insert fundsend insert from any entity for the maintenance, operation, restoration, repair, or enhancement of a designated state park system unit orbegin delete facility,end deletebegin insert facility or for research, educational, interpretive, recreational, or visitor services provided on or for a designated state park system unit or facility. The bill would provide that the funds received shall be used to supplement, but not replace, existing resources,end insert would remove the priority given to preventing closure or reduced hours of service to the public, and wouldbegin delete alsoend delete authorize the department to provide freebegin delete of chargeend deletebegin insert or reduced costend insert accessbegin insert toend insert and use of park facilities to an entity that enters into thisbegin delete agreement.end deletebegin insert agreement, if the public benefit provided by the agreement exceeds or is of comparable value, as determined by the department, to the access to or use of park facilities granted.end insert

begin insertExisting law authorizes the department to enter into an agreement to receive funds from any entity for the maintenance or operation of a state beach, any other unit of the state park system that encompasses a beach, or any area or facility of the state beach or other unit. Existing law requires funds received to be used to supplement existing resources.end insert

begin insert

This bill would authorize the department to enter into an agreement to receive funds from any entity for the maintenance, operation, restoration, repair, or enhancement of a state beach, any other unit of the state park system that encompasses a beach, or any area or facility of the state beach or other unit, or for research, educational, interpretive, recreational, or visitor services provided on or for a state beach, any other unit of the state park system that encompasses a beach, or any area or facility of the state beach or other unit. The bill would provide that funds received shall be used to supplement, but not replace, existing resources, and would authorize the department to provide free or reduced cost access to and use of beach facilities to an entity that enters into this agreement, if the public benefit provided by the agreement exceeds or is of comparable value, as determined by the department, to the access to or use of beach facilities granted.

end insert

Existing 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.

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.

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.

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.

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

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

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.

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.

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.

Vote: majority. Appropriation: no. Fiscal committee: yes. State-mandated local program: no.

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

P4    1

SECTION 1.  

(a) It is the intent of the Legislature to enact
2changes in law necessary to facilitate and expedite implementation
3of reforms recommended by the Parks Forward Commission to
4ensure a vibrant and sustainable park system for all Californians
5and for present and future generations. The changes to be enacted
6include, but are not necessarily limited to, those that will facilitate
7all of the following:

8(1) The organizational, administrative, and technological
9changes needed at the Department of Parks and Recreation to
10modernize the department’s processes, ensure efficiency and
11accountability throughout the department, diversify the
12 department’s workforce, and better serve the needs of park visitors.

13(2) New public-private partnerships to provide improved
14stewardship of state parks and the natural and cultural resources
15they contain and to enhance programs and services for park visitors.

16(3) Enhanced park access for all Californians, and engagement
17of younger generations through increased opportunities for
18environmental and outdoor education in parks and for youth
19leadership development.

20(4) Establishment of a stable and diversified funding structure,
21including a more entrepreneurial and robust revenue generation
22strategy.

P5    1(b) (1) In its 2015 report, the California’s Parks Forward
2Commission recommended expanding the availability of safe,
3clean, and affordable cabins and similar overnight accommodations
4in state and local parks as an important means of providing
5equitable park access and building public support for parks
6statewide.

7(2) Although coastal parks are among California’s most loved
8and visited parks, access to affordable cabins and other lower-cost
9overnight accommodations in coastal parks is limited because of
10high demand and limited supply.

11(3) It is the intent of the Legislature that the California Coastal
12Commission and the State Coastal Conservancy, in consultation
13with the Department of Parks and Recreation and other appropriate
14entities, develop a proposal describing how unexpended fee
15revenue, assessed to mitigate the loss of affordable overnight
16accommodations, in combination with other sources of funding,
17including any public or philanthropic funds that may become
18available, may be used to fund the identification, development,
19and implementation of opportunities to expand availability of
20affordable cabins and other similar overnight accommodations,
21and associated public access and safety facilities in coastal parks,
22including, but not necessarily limited to, state, local, and regional
23parks.

begin insert

24(c) It is the intent of the Legislature in enacting the changes to
25Section 5003.4 made by this act that agreements entered into
26pursuant to subdivision (b) of that section not compete with existing
27concession contracts through which comparable services, as
28determined by the department, are or could be provided.

end insert
29

SEC. 2.  

Section 5003.4 of the Public Resources Code is
30amended to read:

31

5003.4.  

(a) There shall be provided in each state park in which
32camping is permitted those parking facilities for recreational
33vehicles, as defined by Section 18010 of the Health and Safety
34Code, that can be accommodated within the park consistent with
35the objective of providing camping facilities for the public in these
36parks. In addition, the Department of Parks and Recreation may
37 acquire, install or permit the installation of, and operate or permit
38the operation of, camping cabins, as defined by Section 18862.5
39of the Health and Safety Code, parking facilities for recreational
40vehicles, and any associated access and public safety facilities,
P6    1within the units of the state park system, if the installation and
2operation is consistent with the classification of the park system
3unit and with the general plan of the unit, if one exists.

4(b) The department may enter into agreements with qualified
5nonprofit organizations, as defined in subdivision (g) Section
65080.42, for acquisition, installation, and operation of camping
7cabins or parking facilities for recreational vehicles, and any
8associated access and public safety facilities, as described in
9subdivision (a), within units of the state park system. The
10agreements shall be subject to the requirements of Section 5080.42.

begin delete
11

SEC. 3.  

Section 5005 of the Public Resources Code is amended
12to read:

13

5005.  

(a) The department may receive and accept in the name
14of the people of the state any gift, dedication, devise, grant, or
15other conveyance of title to or any interest in real property,
16including water rights, roads, trails, rights-of-way, buildings,
17facilities, and other improvements, to be added to or used in
18connection with the park system. It may receive and accept gifts,
19donations, contributions, or bequests of money to be used in
20acquiring title to or any interest in real property, or in improving
21it as a part of or in connection with the State Park System, or to
22be used for any of the purposes for which the department is created.
23It may also receive and accept personal property for any purpose
24connected with the park system.

25(b) Subdivision (a) is subject to the requirements and exceptions
26set forth in Section 11005 of the Government Code, except that
27the department may accept conditional gifts or bequests of money
28valued at one hundred thousand dollars ($100,000) or less without
29approval from the Director of Finance.

30(c) The department shall annually report to the Director of
31Finance all conditional gifts or bequests of money valued at one
32hundred thousand dollars ($100,000) or less that it accepts or
33receives pursuant to subdivision (b).

end delete
34begin insert

begin insertSEC. 3.end insert  

end insert

begin insertSection 5005 of the end insertbegin insertPublic Resources Codeend insertbegin insert is amended
35to read:end insert

36

5005.  

(a) The department may receive and accept in the name
37of the people of the state any gift, dedication, devise, grant, or
38other conveyance of title to or any interest in real property,
39including water rights, roads, trails,begin delete andend delete rights-of-way,begin insert buildings,
40facilities, and other improvements,end insert
to be added to or used in
P7    1connection with the state park system. It may receive and accept
2gifts, donations, contributions, or bequests of money to be used in
3acquiring title to or any interest in real property, or in improving
4it as a part of or in connection with the state park system, or to be
5used for any of the purposes for which the department is created.
6It may also receive and accept personal property for any purpose
7connected with the park system.

8(b) Subdivision (a) is subject to the requirements and exceptions
9set forth in Section 11005 of the Government Code, except that
10conditional gifts or bequests of money valued at one hundred
11thousand dollars ($100,000) or less, shall not require the approval
12of the Director of Finance.

13(c) The department shall annually report to the Department of
14Finance all conditional gifts or bequests of money valued at one
15hundred thousand dollars ($100,000) or less that it accepts and
16receives pursuant to subdivision (b).

17

SEC. 4.  

Section 5009.1 of the Public Resources Code is
18amended to read:

19

5009.1.  

(a) The department may enter into an agreement to
20accept funds from any person,begin insert educational institution, tribal
21government,end insert
corporation or other business entity, or organization
22for the maintenance, operation, restoration, repair, or enhancement
23of a designated state park system unit orbegin delete facility.end deletebegin insert facility, or for
24research, educational, interpretive, recreational, or visitor services
25provided on or for a designated state park system unit or facility.end insert

26 Any funds so received shall be deposited in a separate account in
27the State Park Contingent Fund. The funds received shall
28begin delete supplementend deletebegin insert supplement, but not replace,end insert existing resources for the
29maintenance, operation, restoration, repair, or enhancement of the
30unit orbegin delete facility.end deletebegin insert facility, or for establishing or enhancing park
31services provided to visitors.end insert
The department and the sponsoring
32begin insert or donatingend insert person, entity,begin insert government,end insert or organization shall
33specify in the agreement the level of service that is to be performed.

34(b) The department may enter into an agreement to accept
35begin delete servicesend delete from any person,begin insert educational institution, tribal
36government,end insert
corporation or other business entity, or organization
37begin insert servicesend insert for the cleanup, repair,begin insert restoration,end insert or enhancement of
38any designated state park system unit orbegin delete facility.end deletebegin insert facility, or for
39research, educational, interpretive, recreational, or visitor services
40provided on or for a state park system unit or facility.end insert
Under the
P8    1direction of the department, these services shall begin deletesupplementend delete
2begin insert supplement, but not replace,end insert existing staff resources for the purpose
3of enhancing the maintenance and operation of the unit orbegin delete facility.end delete
4begin insert facility or for establishing or enhancing park services provided to end insert
5begin insertvisitors.end insert

6(c) The director may authorize the erection of an appropriate
7sign in recognition ofbegin delete the sponsorship,end deletebegin insert a donation or sponsorship
8provided in accordance with this section,end insert
consistent with existing
9law and with the rules and regulations of the department regarding
10signs in units of the state park system.

11(d) The department may provide freebegin delete of chargeend deletebegin insert or reduced costend insert
12 access to, and use of, park facilities to entities that have entered
13into agreements as described in thisbegin delete section.end deletebegin insert section, if the public
14benefit to be provided pursuant to the agreement exceeds or is of
15comparable value, as determined by the department, to the access
16to or use of park facilities granted.end insert

17begin insert

begin insertSEC. 5.end insert  

end insert

begin insertSection 5009.2 of the end insertbegin insertPublic Resources Codeend insertbegin insert is
18amended to read:end insert

19

5009.2.  

(a) The department may enter into an agreement to
20accept funds from any person, business entity,begin insert educational
21institution, tribal government,end insert
or organization for thebegin delete maintenance
22or operationend delete
begin insert maintenance, operation, restoration, repair, or
23enhancementend insert
of a state beach, any other unit of the state park
24system that encompasses a beach, or any area or facility of the
25state beach or otherbegin delete unit.end deletebegin insert unit, or for research, educational,
26interpretive, recreational, or visitor services provided on or for a
27state beach, any other unit of the state park system that
28encompasses a beach, or any area or facility of the state beach or
29other unit.end insert
Any funds so received shall be deposited in a separate
30account in the State Park Contingent Fund. The funds received
31shallbegin delete supplementend deletebegin insert supplement, but not replace,end insert existing resources
32for the purposes of enhancing thebegin delete maintenance or operationend delete
33begin insert maintenance, operation, restoration, repair, or enhancementend insert of
34the state beach, other unit of the state park system that encompasses
35a beach, or area or facility of the state beach or otherbegin delete unit.end deletebegin insert unit, or
36for establishing or enhancing beach services provided to end insert
begin insertvisitors.end insert
37 The department and the sponsoringbegin insert or donatingend insert person, business
38entity,begin insert government,end insert or organization may specify in the agreement
39the level ofbegin delete maintenance or operationend deletebegin insert maintenance, operation,
40restoration, repair, or enhancementend insert
that will be performed.

P9    1(b) The department may also enter into an agreement to accept
2begin delete servicesend delete from any person,begin insert educational institution, tribal
3government,end insert
business entity, or organizationbegin insert servicesend insert for the
4operation,begin insert restoration, repair,end insert maintenance, or enhancement of a
5state beach, other unit of the state park system that encompasses
6a beach, or area or facility of the state beach or otherbegin delete unit, on a
7nonprofit basis.end delete
begin insert unit, or for research educational, interpretive,
8recreational, or visitor services provided on or for a state beach,
9other unit of the state park system that encompasses a beach, or
10area or facility of the state beach or other unit.end insert
Under the direction
11of the department, those services shallbegin delete supplementend deletebegin insert supplement,
12but not replace,end insert
existing staff resources for the purposes of
13operation,begin insert restoration, repair,end insert maintenance, or enhancement of
14the state beach,begin delete area, or facility.end deletebegin insert other unit of the state park system
15that encompasses a beach, or area or facility of the state beach
16or other unit.end insert

17(c) The director may authorize the erection of an appropriate
18sign in recognition ofbegin delete that sponsorship,end deletebegin insert a donation or sponsorship
19provided in accordance with this section,end insert
in accordance with
20department rules and regulations regarding signs in the state park
21system.

begin insert

22(d) The department may provide free or reduced cost access to,
23and use of, beach facilities to entities that have entered into
24agreements as described in this section, if the public benefit to be
25provided pursuant to the agreement exceeds or is of comparable
26value, as determined by the department, to the access to or use of
27beach facilities granted.

end insert
begin delete

28(d)

end delete

29begin insert(e)end insert The activities authorized by this section shall be implemented
30as part of the department’s Adopt-A-Beach program.

31

begin deleteSEC. 5.end delete
32begin insertSEC. 6.end insert  

Section 5010.3 is added to the Public Resources Code,
33to read:

34

5010.3.  

(a) The department shall develop a statewide policy
35for assessment of fees pursuant to Section 5010 that balances the
36state’s goal of sustainable revenue generation to support state
37parks, with the state’s goal of preserving affordable public access
38to public lands, including, but not limited to, lands in the coastal
39zone. The fee policy shall, at a minimum, do all of the following:

P10   1(1) To the extent feasible, ensure that fees do not serve as a
2deterrent to equitable public access and are comparable to fees
3charged for other similar services.

4(2) Reflect the appropriate role of user fees as part of an overall,
5 equitable, and sustainable revenue generation strategy that includes
6a proper balance of public funding and earned revenue to support
7state parks.

8(3) Be based on uniform principles that reflect the different
9levels of services provided at different parks, the department’s
10goals for service-based budgeting, and the best practices for pricing
11that align policy goals with visitor expectations. To the extent
12feasible, fees should be commensurate with the benefits and
13services provided to visitors.

14(4) Describe the process for setting and approving allbegin delete fee-rateend delete
15begin insert fee-scheduleend insert changes.

16(5) Provide for public accountability and transparency, and
17advance public notice for proposed changes to fee schedules.

18(b) The department may consult with the National Park Service
19for guidance in developing a statewide fee policy.

20(c) The department shall conduct public workshops on
21development of the statewide fee policy and may seek assistance
22with scheduling and conducting of the workshops from the State
23Park and Recreation Commission.

24(d) (1) The department shall report to the Legislature on the
25statewide fee policy on or before December 31, 2016.

26(2) The report required pursuant to paragraph (1) shall be
27submitted in compliance with Section 9795 of the Government
28Code.

29(3) This subdivision shall be inoperative on December 31, 2020,
30pursuant to Section 10231.5 of the Government Code.

31(e) The department shall make its fee schedule publicly available
32on the department’s Internet Web site and immediately update the
33fee schedule to reflect any fee-rate changes.

34(f) It is the intent of the Legislature that the department, in
35addition to developing a statewide fee policy, provide convenient
36and cost effective options for fee payment and collection by
37expanding and integrating fee collection methodologies across the
38state park system and offering modern fee collection and payment
39options that include, but are not necessarily limited to, cash, credit
40card, and smart phone technology, if appropriate.

P11   1(g) The department may also implement additional options,
2including hourly fees, regional passes, and promotional free-day
3annual events, and explore opportunities for collaborative fee
4arrangements and passes with other federal, state, and local park
5agencies, if appropriate.

6

begin deleteSEC. 6.end delete
7begin insertSEC. 7.end insert  

Section 5010.7 of the Public Resources Code is
8amended to read:

9

5010.7.  

(a) The department shall develop a revenue generation
10program as an essential component of a long-term sustainable park
11funding strategy. On or before July 1, 2014, and annually thereafter,
12the department shall assign a revenue generation target to each
13district under the control of the department. The department shall
14develop guidelines for districts to report the use of funds generated
15by the revenue generation program, and shall post information and
16copies of the reports on its Internet Web site.

17(b) The California State Park Enterprise Fund is hereby created
18in the State Treasury as a working capital fund, and the revenue
19shall be available to the department upon appropriation by the
20Legislature for capital outlay or support expenditures for revenue
21generating investments in state parks. These investments may
22include, but are not limited to, planning and implementation of a
23statewide electronic fee collection system that includes installation
24of modern fee collection equipment and technologies to enhance
25collection of state park users fees and that will enable park users
26to pay fees with commonly used forms of electronic fund transfers,
27including, but not limited to, credit and debit card transactions,
28and other park revenue generating projects, and shall be available
29for encumbrance and expenditure until June 30, 2019, and for
30liquidation until June 30, 2021.

31(1) The department shall prepare guidelines for districts to apply
32for funds for capital projects that are consistent with this
33subdivision.

34(2) The guidelines prepared pursuant to this subdivision shall
35require all of the following:

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

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

38(C) A projection of revenue, including annual income, fees, and
39projected usage rates.

P12   1(D) A projection of costs, including design, planning,
2construction, operation, staff, maintenance, marketing, and
3information technology.

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

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

6(c) The revenue generated by the revenue generation program
7developed pursuant to subdivision (a) shall be deposited into the
8State Parks and Recreation Fund. Revenue identified as being in
9excess of the revenue targets shall be transferred to the State Parks
10Revenue Incentive Subaccount, established pursuant to Section
115010.6, on or before June 1, annually.

12(d) Moneys transferred to the State Parks Revenue Incentive
13Subaccount pursuant to subdivision (c) shall be expended as
14follows:

15(1) (A) The department shall allocate 50 percent of the total
16amount of revenues deposited into the State Parks Revenue
17Incentive Subaccount pursuant to subdivision (c), generated by a
18park district to that district if the amount of revenues generated
19exceeds the targeted revenue amount prescribed in the revenue
20generation program. The revenues to be allocated to a park district
21that fails to achieve the revenue target shall remain in the
22subaccount.

23(B) With the approval of the director, each district shall use the
24funds it receives pursuant to this section to improve the parks in
25that district through revenue generation programs and projects and
26other activities that will assist in the district’s revenue generation
27activities, and the programs, projects, and other activities shall be
28consistent with the mission and purpose of each unit and with the
29plan developed for the unit pursuant to subdivision (a) of Section
305002.2.

31(C) The department shall report to the Legislature, commencing
32on July 1, 2014, and annually on or before each December 31
33thereafter, on the revenue distributed to each district pursuant to
34this section.

35(2) The department shall use 50 percent of the funds deposited
36into the State Parks Revenue Incentive Subaccount pursuant to
37subdivision (c) for the following purposes:

38(A) To fund the capital costs of construction and installation of
39new revenue and fee collection equipment and technologies and
P13   1other physical upgrades to existing state park system lands and
2facilities.

3(B) For costs of restoration, rehabilitation, and improvement of
4the state park system and its natural, historical, and visitor-serving
5resources that enhance visitation and are designed to create
6opportunities to increase revenues.

7(C) For costs to the department to implement the action plan
8required to be developed by the department pursuant to Section
9 5019.92.

10(D) Pursuant to subdivision (c) of Section 5010.6, for
11expenditures to support revenue generation projects that include,
12but are not limited to, staffing kiosks, campgrounds, and parking
13lots.

14(e) The funds generated by the revenue generation program
15shall not be used by the department to expand the park system,
16unless there is significant revenue generation potential from such
17an expansion.

18(f) Notwithstanding Section 5009, moneys received by the
19department from private contributions and other public funding
20sources may also be deposited into the California State Park
21Enterprise Fund and the State Parks Revenue Incentive Subaccount
22for use for the purposes of subdivision (c) and subdivision (d).

23(g) The department shall provide all relevant information on its
24Internet Web site concerning how funds in the State Parks and
25Recreation Revenue Incentive Subaccount and the California State
26Park Enterprise Fund are spent.

27(h) The department may recoup its costs for implementing and
28administering the working capital from the fund.

29

begin deleteSEC. 7.end delete
30begin insertSEC. 8.end insert  

Section 5080.18 of the Public Resources Code is
31amended to read:

32

5080.18.  

All concession contracts entered into pursuant to this
33article shall contain, but are not limited to, all of the following
34provisions:

35(a) (1) The maximum term shall be 10 years, except that a term
36of more than 10 years may be provided if the director determines
37that the longer term is necessary to allow the concessionaire to
38amortize improvements made by the concessionaire, to facilitate
39the full utilization of a structure that is scheduled by the department
40for replacement or redevelopment, or to serve the best interests of
P14   1the state. The term shall not exceed 20 years without specific
2authorization by statute. Except as provided in Section 5080.16,
3all renewals of concession contracts pursuant to this paragraph
4shall be subject to competitive bidding requirements.

5(2)  The maximum term shall be 50 years if the concession
6contract is for the construction, development, and operation of
7multiple-unit lodging facilities equipped with full amenities,
8including plumbing and electrical, that is anticipated to exceed an
9initial cost of one million five hundred thousand dollars
10($1,500,000) in capital improvements in order to begin operation.
11The term for a concession contract described in this paragraph
12shall not exceed 50 years without specific authorization by statute.
13Except as provided in Section 5080.16, all renewals of concession
14contracts pursuant to this paragraph shall be subject to competitive
15bidding requirements.

16(3) Notwithstanding paragraph (1), a concession agreement at
17Will Rogers State Beach executed prior to December 31, 1997,
18including, but not limited to, an agreement signed pursuant to
19Section 25907 of the Government Code, may be extended to exceed
2020 years in total length without specific authorization by statute,
21upon approval by the director and pursuant to a determination by
22the director that the longer term is necessary to allow the
23concessionaire to amortize improvements made by the
24concessionaire that are anticipated to exceed one million five
25hundred thousand dollars ($1,500,000) in capital improvements.
26Any extensions granted pursuant to this paragraph shall not be for
27more than 15 years.

28(b) Every concessionaire shall submit to the department all sales
29and use tax returns and, at the request of the department, provide
30an annual financial statement prepared or audited by a certified
31public accountant.

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

33(d) A performance bond shall be obtained and maintained by
34the concessionaire. In lieu of a bond, the concessionaire may
35substitute a deposit of funds acceptable to the department. Interest
36on the deposit shall accrue to the concessionaire.

37(e) The concessionaire shall obtain and maintain in force at all
38times a policy of liability insurance in an amount adequate for the
39nature and extent of public usage of the concession and naming
40the state as an additional insured.

P15   1(f) Any discrimination by the concessionaire or his or her agents
2 or employees against any person because of the marital status or
3ancestry of that person or any characteristic listed or defined in
4Section 11135 of the Government Code is prohibited.

5(g) To be effective, any modification of the concession contract
6shall be evidenced in writing.

7(h) Whenever a concession contract is terminated for substantial
8breach, there shall be no obligation on the part of the state to
9purchase any improvements made by the concessionaire.

10

begin deleteSEC. 8.end delete
11begin insertSEC. 9.end insert  

Section 5080.20 of the Public Resources Code is
12amended to read:

13

5080.20.  

A contract, including a contract entered into on lands
14operated pursuant to an agreement entered into under Article 2
15(commencing with Section 5080.30), that is expected to involve
16a total investment or estimated annual gross sales in excess of one
17million dollars ($1,000,000), shall not be advertised for bid,
18negotiated, renegotiated, or amended in any material respect unless
19and until all of the following requirements have been complied
20with:

21(a)  The commission has reviewed the proposed services,
22facilities, and location of the concession and determined that they
23meet the requirements of Sections 5001.9 and 5080.03 and are
24compatible with the classification of the unit in which the
25concession will be operated.

26(b)  The Legislature has reviewed and approved the proposed
27concession as part of the annual budget process or the requirements
28of subdivision (c) have been complied with. A proposed concession
29shall not be submitted for review by the Legislature until the
30commission has made its determination pursuant to subdivision
31(a), unless deferring review by the Legislature would be adverse
32to the interests of the public, in which case the Legislature’s review
33may precede the commission’s determination.

34(c)  Following enactment of the Budget Bill, the board has
35determined that the proposed concession could not have been
36presented to the Legislature for review and approval in the course
37of its consideration of the Budget Bill, or the proposed concession
38was reviewed and approved but it is necessary to revise the terms
39of the invitation to bid or the contract in a material respect, and
40that it would be adverse to the interests of the public to defer that
P16   1review and approval to a time when the Legislature next considers
2a Budget Bill. Upon making that determination, the board may
3review and approve the proposed concession, or any revision
4thereof, after giving at least 20 days’ written notice to the Chair
5of the Joint Legislative Budget Committee and to the chair of the
6fiscal and appropriate policy committees of its intended action.
7All actions taken by the board pursuant to this subdivision shall
8be reported to the Legislature in the next Governor’s Budget.

9(d)  The proposed concession is accompanied with
10documentation sufficient to enable the Legislature, the commission,
11and the board, as the case may be, to ascertain whether the
12concession will conform to the requirements of this article and, as
13to the Legislature and the board, to evaluate fully all terms on
14which the concession is proposed to be let, including the rent and
15other returns anticipated to be received.



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