BILL ANALYSIS Ó SENATE COMMITTEE ON APPROPRIATIONS Senator Ricardo Lara, Chair 2015 - 2016 Regular Session AB 549 (Levine) - State park system ----------------------------------------------------------------- | | | | | | ----------------------------------------------------------------- |--------------------------------+--------------------------------| | | | |Version: June 30, 2015 |Policy Vote: N.R. & W. 9 - 0 | | | | |--------------------------------+--------------------------------| | | | |Urgency: No |Mandate: No | | | | |--------------------------------+--------------------------------| | | | |Hearing Date: July 13, 2015 |Consultant: Marie Liu | | | | ----------------------------------------------------------------- This bill meets the criteria for referral to the Suspense File. Bill Summary: AB 549 would make numerous changes to the operations of state parks in regards to contracts, agreements, and donations. This bill would also require the Department of Parks and Recreation (DPR) to develop a statewide policy for the assessment of fees. Fiscal Impact: Unknown ongoing staffing costs, potentially minor to the low hundreds of thousands of dollars (special fund*) to review additional agreements and contracts. Unknown limited-term staffing costs, potentially minor to the low hundreds of thousands of dollars, (special fund*) to develop the required statewide fee plan. Unknown costs, between minor and the low hundreds of thousands of dollars, (special fund*) to hold public meetings outside of regularly scheduled State Park Commission meetings to develop the statewide fee plan. AB 549 (Levine) Page 1 of ? Unknown revenue increases (special fund*) for additional donations and benefits of agreements with DPR. Unknown revenue losses (special fund*) for free and reduced costs access and use of state park units, which may be offset by the benefits of agreements. * State Parks and Recreation Fund Background: Under existing law DPR is authorized to enter into agreements with qualified nonprofits and contracts with companies for certain services and operations at state parks. DPR is required to provide parking facilities for recreational vehicles in all parks which camping is allowed. Proposed Law: This bill would make a number of changes to the operation of state parks, particularly in regards to contracts, agreements, and donations. Specifically, this bill would: Allow DPR to entire into agreements with qualified nonprofit organizations for the acquisition, installation, and operation of camping cabins or parking for recreational vehicles and associated facilities. Expand what DPR may receive as gifts to include buildings, facilities, and other improvements. Allow DPR to also enter into agreements with an educational institution or tribal government for the maintenance and operation of a state park unit. Allow DPR to enter into agreements for restoration, repair, educational services, research services, interpretive services, recreational services, or visitor services in addition to agreements for maintenance or operation with specified entities. AB 549 (Levine) Page 2 of ? Allow DPR to provide free or reduced cost access to, and use of, park facilities to entities that have entered into agreements to provide services to the park, so long as the value of the agreement exceeds the value of the park access or use. Require DPR to develop a statewide policy for the assessment of fees that balances the state's goal of sustainable revenue generation to support state parks with preserving affordable public access to public lands. In developing this policy, DPR would be required to conduct public workshops and may seek the assistance of the Parks and Recreation Commission. DPR would be required to report to the Legislature on the policy by December 31, 2016. Change the date by which DPR must annually report to the Legislature regarding its revenue generation program from July 1st to December 31st. Raises the limit of contracts from $500,000 to one million. Explicitly subject renewals of concession contracts to competitive bidding requirements. Related Legislation: SB 204 (Pavley) would make a number of changes to the operation of state parks. SB 204 is currently in the Assembly Appropriations Committee. Staff Comments: This bill expands the types of agreements that can be entered into by DPR and with whom. Additionally, this bill explicitly requires that concession contracts be subject to competitive bidding. DPR currently has staff to review both agreements and concession contracts. While DPR has indicated that its existing personnel can absorb the workload increase AB 549 (Levine) Page 3 of ? under this bill, staff believes the workload costs would be dependent on the number of additional agreements and contracts that are proposed to DPR, which are unknown. If there is a notable increase in the number of agreements or contracts requested, which presumably is the goal since these changes are part of greater efforts at DPR to improve its fiscal sustainability, DPR may need additional personal to enter into, then provide oversight on, contracts and agreements. This bill would require DPR to develop a statewide policy for the assessment of fees. While the development of such a plan is within DPR's existing authority, it has not done so. As this bill requires an activity that has not been done already, this bill will result in additional workload to DPR. Staff believes that these costs are unknown but could be between minor and in the low hundreds of thousands of dollars for an additional PY. The bill would require the statewide fee policy to be developed with public meetings. To the extent possible, DPR would use existing Parks and Recreation Commission meetings to meet this requirement. However, given that the bill would require DPR to report to the Legislature on the policy by December 31, 2016, DPR may need to have additional meetings to assure that the meetings on the policy are held in a timely and geographically balanced manner. DPR estimates that each additional meeting would cost $35,000. Staff believes that no more than three additional meetings would be needed. This bill would allow DPR to provide free or reduce cost access to, and use of, park and beach facilities to entities that have entered into agreements for the maintenance, operation, restoration, repair, or enhancement of a park unit or beach or to provide research, educational, interpretive, recreational, or visitor services. The free or reduced cost access or use would be required to be less than the value of the agreement, as determined by DPR. Despite this requirement, there may be costs associated with this allowance to the extent that the free or reduced cost access or use displaces full-paying visitors or uses of the park or beach. This bill expands the types of donations that can be received by DPR, thereby potentially increasing revenues to the State Park AB 549 (Levine) Page 4 of ? and Recreation Fund. Proposed Author Amendments: The author has submitted a number of technical amendments to the committee, including amendments to delete intent language regarding coastal parks and modify the review of contracts that are anticipated to involve investments or sales in excess of $1 million. These amendments will be processed while the bill is on the suspense file. -- END --