BILL ANALYSIS Ó AB 549 Page 1 CONCURRENCE IN SENATE AMENDMENTS AB 549 (Levine) As Amended August 31, 2015 Majority vote -------------------------------------------------------------------- |ASSEMBLY: |78-0 |(May 4, 2015) |SENATE: |40-0 |(September 1, | | | | | | |2015) | | | | | | | | | | | | | | | -------------------------------------------------------------------- Original Committee Reference: W., P., & W. SUMMARY: Authorizes the Department of Parks and Recreation (DPR) to accept donations for support of state parks, requires proposed park concession contracts above a threshold to be provided to the Joint Legislative Budget Committee for review prior to approval, clarifies DPR's authority to enter into agreements for acquisition and operation of cabins in state parks, clarifies that concession contract renewals are subject to competitive bidding requirements, and states legislative intent to expedite implementation of recommended reforms of the state park system. The Senate amendments: 1)Authorize DPR to acquire and operate camping cabins and parking facilities for recreational vehicles in state park units, and to enter into agreements with nonprofit AB 549 Page 2 organizations to acquire, install, and operate camping cabins and parking facilities for recreational vehicles in state park units. 2)Authorize DPR to accept donations of rights-of-way, buildings, facilities and other improvements to be added to or used in connection with the state park system. 3)Clarify DPR's authority to enter into an agreement to accept funds or services from a person, educational institution, tribal government, or other organization for the maintenance, operation, restoration, repair, development, improvement, or enhancement of a state park system unit, state beach, or facility, or for research, educational, interpretive, recreational, or visitor services provide on or for a state park system unit. Provides that such funds or services shall supplement but not replace existing resources for these purposes. 4)Authorize DPR to provide free or reduced cost access to and use of park facilities for entities that have entered into agreements to donate funds or services to state parks, if the public benefit to be provided exceeds or is of comparable value to the access or use of the park facilities granted. 5)Require, with specified exceptions, that all concession contract renewals be subject to competitive bidding requirements. Requires state park concessionaires, upon request of DPR, to provide an annual financial statement prepared or audited by a certified public accountant. 6)Prohibit a proposed state park concession contract, expected to involve a total investment or estimated annual gross sales in excess of $1 million, from being advertised for bid, negotiated, or materially amended unless and until at least 30 days advance written notice is provided to the appropriate policy and fiscal committees of the Legislature and the Joint AB 549 Page 3 Legislative Budget Committee for review. EXISTING LAW: 1)Called for creation of the Parks Forward Commission to undertake an independent, comprehensive review of the state park system and make recommendations to the Legislature and Governor to provide for long-term sustainability of state parks. 2)Requires DPR to develop a revenue generation program as an essential component of a long-term sustainable park funding strategy. Requires DPR to develop revenue generation targets for each district. Requires revenue generated by the revenue generation program to be deposited in the State Parks & Recreation Fund. Revenue in excess of the revenue targets is to be transferred to the State Parks Revenue Incentives Subaccount. Fifty percent of the revenues in the subaccount are allocated to those districts that exceeded their revenue targets, for improvement of the parks in that district. 3)Requires DPR to report to the Legislature by July 1 of each year on the revenue distributed to each district from the revenue generation incentives subaccount. 4)Prohibits a proposed state park concession contract expected to involve a total investment or estimated annual gross sales in excess of $500,000 from being advertised for bid, negotiated, or materially amended unless and until all of the following have occurred: a) The State Park & Recreation Commission has reviewed the proposed concession and determined that it meets AB 549 Page 4 requirements of law and is compatible with the classification of the park unit. b) The Legislature has reviewed and approved the proposed concession as part of the annual budget process, or, following enactment of the Budget, the Public Works Board determines that the concession could not be presented for review as part of the budget process and it would be adverse to the interests of the public to defer action, in which case the Public Works Board may review and approve the concession after giving the Joint Legislative Budget Committee and the chair of the fiscal and appropriate policy committees 20 days written notice. FISCAL EFFECT: According to the Senate Appropriations Committee: 1)Unknown ongoing staffing costs, potentially minor to the low hundreds of thousands of dollars (special fund) to review additional agreements and contracts. 2)Unknown revenue increases (special fund) for additional donations and benefits of agreements with DPR. 3)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. COMMENTS: This bill as passed by the Assembly stated legislative intent to enact changes in law necessary to facilitate and expedite implementation of reforms recommended by the Parks Forward Commission to ensure a sustainable state park system for California. It also required DPR to report to the Legislature annually by December 31st on the revenue distributed to each state park district pursuant to DPR's revenue generation program. These provisions are still in this bill, plus a number of additional provisions were added in the Senate to facilitate implementation of transformation efforts underway at DPR. These AB 549 Page 5 include provisions recommended by the Parks Forward Commission and the transformation team that is working on implementation. Specifically, this bill clarifies DPR's authority to acquire and operate alternative overnight accommodations in state parks to improve public access; to accept donations of funds, services, and facilities for support of state parks; and to enhance partnerships. This bill also improves the process for review and approval of state park concession contracts, in order to enhance efficiency, oversight and transparency. Analysis Prepared by: Diane Colborn / W., P., & W. / (916) 319-2096 FN: 0001803