BILL ANALYSIS Ó SENATE COMMITTEE ON NATURAL RESOURCES AND WATER Senator Fran Pavley, Chair 2015 - 2016 Regular Bill No: AB 549 Hearing Date: June 23, 2015 ----------------------------------------------------------------- |Author: |Levine | | | ----------------------------------------------------------------- ----------------------------------------------------------------- |Version: |June 16, 2015 Amended | ----------------------------------------------------------------- ----------------------------------------------------------------- |Urgency: |No |Fiscal: |Yes | ----------------------------------------------------------------- ----------------------------------------------------------------- |Consultant:|William Craven | | | | ----------------------------------------------------------------- Subject: State park system. BACKGROUND AND EXISTING LAW 1) The California Department of Parks and Recreation (DPR) 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. 2) Recent statutory changes that reacted to fiscal improprieties at DPR established several reforms by which the department was empowered to improve its own fiscal health. To that end: a) The department's authority to collect fees, rents, and other returns for the use of state parks was expanded; b) It was authorized to sell additional annual and regional passes and to enter a wider array of concession contracts; and c) A revenue generation program was established. Also, ex-officio legislative members to the California State Parks and Recreation Commission were added, and state law also directed the establishment of a citizen review panel, the Parks Forward Commission, whose final report was released earlier this year. 3) The key recommendations of the Parks Forward Commission were to: AB 549 (Levine) Page 2 of ? a) Create a "transformation team" within the department to improve internal procedures including technologies to assist with budgeting, planning, and project implementation; b) Improve relationships with nonprofits and other partners; c) Develop an outside support entity to help the department with marketing, financial, and other aspects of the department's work where an outside entity with greater business experience would be useful d) Improve cultural and resource protection programs; e) Expand access to parks including to those from park-poor and other disadvantaged communities. 4) These recent changes were a part of what has developed into a concerted, year-by-year approach to reforms at the department by the Legislature. This bill, along with SB 204 (Pavley), are examples of that approach in 2015. 5) The Director of Finance is required to approve all gifts, bequests, etc., in any amount that are given to DPR, except for a certain historic artifacts that are valued at less than $15,000. 6) DPR is authorized pursuant to Public Resources Code section 5009.1 to enter into agreements to accept funds from any person, corporation, or business entity for the maintenance or operation on a nonprofit basis, of a state park unit. 7) DPR may enter into concession contracts with private businesses subject to the specified conditions. PROPOSED LAW This bill has several provisions. 1) It contains findings and declarations regarding the purpose of, and recommendations from the Parks Forward Commission. 2) One of those recommendations focused on the need to expand 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. In particular, coastal parks have been identified as those where lower-cost overnight AB 549 (Levine) Page 3 of ? accommodations are in high demand and low supply. The bill contains a statement of legislative intent that the California Coastal Commission, the State Coastal Conservancy and DPR develop a proposal using existing and possibly future revenues that may identify and implement opportunities to expand the availability of affordable cabins or other similar accommodations in state, local, and regional parks. 3) Section 5003.4 of the Public Resources Code is proposed to be amended to allow DPR to acquire and install camping cabins, parking facilities for recreational vehicles, and any associated access and public safety facilities with state parks provided the operation is consistent with the classification of that park unit and with a general plan of that unit if one is in effect. Further, the department may enter into agreements with qualified nonprofits to acquire, install, and operate these cabins, parking facilities for recreational vehicles, and any associated access and public safety features provided such agreements comply with the terms of Section 5080.42. That section is the main provision in the Public Resources Code authorizing DPR to enter into operating agreements with nonprofits. 4) The bill expands the department's authority to accept various gifts and interests in real property to include buildings, facilities, and other improvements to be used in connection with the park system. The bill establishes a $100,000 cap for conditional gifts or bequests gifts that the department can accept without approval from the Director of Finance. Conditional gifts or bequests are those that require the gift to be used at a certain park or for specified purposes. DPR must annually report such gifts to the Director of Finance. 5) The bill expands the authority of DPR to accept funds for the operations of state parks units. The new authority allows DPR to enter into agreements for the restoration, repair, or enhancement of state park units and deletes the requirement that such funds be contributed on a nonprofit basis. It also deletes the requirement that such funds must be prioritized to prevent park closures or to reduce hours of service to the public. This provision also allows DPR to provide free access to and use of park facilities to entities that have entered into agreements pursuant to this section. 6) The bill directs DPR to develop a statewide policy for AB 549 (Levine) Page 4 of ? assessment of fees that balances the state's goals of sustainable revenue generation with the equally important goal of preserving affordable public access to public lands, including lands in the coastal zone. Factors DPR is directed to include in developing a statewide fee policy are: a) To the extent feasible, ensure that fees are not a deterrent to equitable public access and are comparable to fees charged for other similar services. b) 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; c) Base a fee policy on uniform principles that reflect 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. d) Establish a process for setting and approving all fee rate changes. e) Provide for public accountability and transparency, and advance public notice for proposed changes to fee schedules. 7) DPR is authorized to consult with the National Park Service for guidance in developing a statewide fee policy. 8) DPR must conduct public workshops on developing a statewide fee policy and may seek assistance with scheduling and conducting of the workshops from the State Park and Recreation Commission. 9) DPR must report to the Legislature on the statewide fee policy on or before December 31, 2016. 10) The fee schedule must be publicly available on the department's website which must be updated to reflect any changes in the fee structure. 11) The bill contains a statement of intent that the department also continue its efforts to accept modern fee collection and payment options, including cash, credit card, and smart phone technologies. AB 549 (Levine) Page 5 of ? 12) DPR is authorized to include additional options in its fee policy, including hourly fees, regional passes, and promotional free-day events. It is also authorized to explore opportunities for collaborative fee arrangements and passes with other federal, state, and local park agencies. 13) The bill proposes a change to concession contracts that are entered into between the department and private firms that provide specified services at state parks. The change allows DPR to request an annual financial statement prepared or audited by a certified public accountant. Additionally, a technical change regarding the public bid process for concession contracts is proposed. 14) The bill raises the cap on concession contracts that are not subject to various contract requirements from $500,000 to $1,000,000 in total sales or investment value. 15) The bill contains other technical and clarifying changes from Legislative Counsel. ARGUMENTS IN SUPPORT According to the author, AB 549 will facilitate implementation of the Parks Forward Commission recommendations to improve and strengthen the management of California's state park system, enhance the tools available to DPR to facilitate partnerships agreements, generate increased revenue, and promote public access to state parks. Among other things, this bill enhances opportunities for DPR to develop mutually beneficial partnerships with nonprofit organizations, accept philanthropic contributions to support parks, and increase affordable overnight accommodation options in state parks. It also updates and makes more efficient the process for approval of concession agreements. Finally, it calls for a statewide fee policy that balances the Legislature's goals of affordable public access to state parks and mission-consistent revenue generation ARGUMENTS IN OPPOSITION None received. COMMENTS In discussions with the author, two amendments are proposed. The AB 549 (Levine) Page 6 of ? first adds a finding and declaration that the agreements with nonprofits to provide tents or other lodging not compete with existing concession contracts through which comparable services are provided. The second is a series of clarifying amendments to Section 5009.1 regarding funds provided by other entities to DPR. SUGGESTED AMENDMENTS AMENDMENT 1 Page 4, line 36, add (b): It is the intent of the Legislature in enacting the changes to Section 5003.4 in this bill, that such agreements not compete with existing concession contracts through which comparable services are provided. AMENDMENT 2 This amendment to Public Resources Code section 5009.1 adds academic or educational institutions and tribal governments to those entities authorized to enter into agreements to provide funds to the department. It borrows existing language from a related provision that authorized the department to erect signage recognizing the sponsorship of the donor, consistent with the rules and regulations of the department. It also broadens the scope of such agreements to include research, educational, interpretative, recreational or visitor services. The provision allowing DPR to provide free access and use of park facilities will be subject to a requirement that the benefit provided by the agreement exceeds or is of comparable value to any use of park facilities granted. A mock up of the proposed section is below. 5009.1 (a) The department may enter into an agreement to accept funds from any person, corporation, or other business entity, academic or educational institution, tribal government , or organization for the maintenance ,oroperation, restoration, repair or enhancementon a nonprofit basisof a designated state park system unit or facility or for research, educational, interpretive, recreational, or visitor services provided on or for a 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 AB 549 (Levine) Page 7 of ? resources for the purpose of enhancing the maintenance or operation of the unit or facility or increasing, enhancing, or establishing services delivered to park visitors .,with priority given to preventing closure or reduced hours of service to the public.The department and the sponsoring person, entity, government , or organization shall specify in the agreement the level of service which is to be performed. (1) The director may authorize the erection of appropriate signage in recognition of the donation or sponsorship, consistent with existing law and with the rules and regulations of the department regarding signs in units of the state park system. (b) The department may enter into an agreement to accept services from any person, corporation, or other business entity, academic or educational institution, tribal government , or organization for the cleanup, repair, restoration or enhancement of any designated state park system unit or facility or for research, educational, interpretive, recreational, or visitor services provided on or for a state park system unit or facility . Under the direction of the department, these services shall supplement, but not replace existing staff resources for the purpose of enhancing the maintenance and operation of the unit or facility or increasing, enhancing, or establishing services delivered to park visitors . (1) 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. (c) The department, at its discretion, may provide access to and use of park facilities to entities that have entered into agreements as described in this section as long as the public benefit provided by the agreement exceeds or is of comparable value to any use of park facilities granted. In addition, the same provisions would apply to state beaches. SUPPORT California State Parks Foundation OPPOSITION None Received -- END -- AB 549 (Levine) Page 8 of ?