BILL ANALYSIS Ó
AB 2549
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Date of Hearing: March 29, 2016
ASSEMBLY COMMITTEE ON WATER, PARKS, AND WILDLIFE
Marc Levine, Chair
AB 2549
(Committee on Water, Parks, and Wildlife) - As Introduced
February 19, 2016
SUBJECT: State park system
SUMMARY: Requires the Department of Parks & Recreation (DPR) to
provide 30 days advance written notice of a proposed lease or
operating agreement in a state park to the Joint Legislative
Budget Committee and appropriate policy and fiscal committees.
Specifically, this bill:
1)Prohibits any state park lease agreement that extends beyond a
10 year period from being approved by DPR unless both of the
following occurs:
a) At least 30 days advance written notice of the proposed
lease, including a copy of the lease, has been provided by the
DPR director to the appropriate policy and fiscal committees
of the Legislature and the Joint Legislative Budget Committee,
and
b) The director includes sufficient documentation to enable the
committees to determine whether the lease will conform to the
requirements of statute and to evaluate fully all terms upon
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which the lease is proposed to be let, including the rent and
other returns anticipated.
2)Prohibits a state park operating agreement from being entered
into or amended unless at least 30 days written notice of the
proposed agreement or amendment, including a copy of the
proposal, has been provided by the director of DPR to the
appropriate policy and fiscal committees of the Legislature
and the Joint Legislative Budget Committee. Requires that the
director provide sufficient documentation to enable the
committees to evaluate fully the estimated operating costs and
revenues and all terms upon which the agreement or amendment
is proposed to be entered into, as specified.
EXISTING LAW:
1)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
Legislative Budget Committee for review.
2)Prohibits DPR from entering a lease agreement for state park
property that extends beyond a 10 year period unless the
Legislature has reviewed and approved the proposed lease 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 lease after giving the Joint
Legislative Budget Committee and the chair of the fiscal and
appropriate policy committees 20 days written notice.
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3)Prohibits DPR from entering into or amending an operating
agreement or lease for a state park unless the Legislature has
reviewed and approved the proposed agreement or amendment as
part of the annual budget process, or, following enactment of
the Budget, the Public Works Board determines that the
operating agreement or amendment 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 operating
agreement or amendment after giving the Joint Legislative
Budget Committee and the legislative fiscal committees 20 days
written notice.
FISCAL EFFECT: Unknown
COMMENTS: This bill would enact efficiencies in the process for
review and approval of proposed state park leases and operating
agreements.
1)Author's Statement: This bill requires DPR to provide the
Joint Legislative Budget Committee and appropriate policy and
fiscal committees of the Legislature 30 days advance written
notice of proposed state park lease agreements for periods
longer than 10 years, and state park operating agreements.
DPR would also be required to provide the Legislature with
sufficient documentation to enable the committees to determine
whether the proposed lease or operating agreement conformed
with the requirements of the law and to evaluate fully the
terms upon which the lease or operating agreement is proposed
to be let, including rents and other anticipated returns.
2)Background: Last year the Legislature, through the passage of
AB 549 (Levine), enacted a number of reforms to facilitate
DPR's ability to more efficiently manage state parks. One of
those reforms streamlined the process for approval of
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concession contracts while ensuring legislative oversight, by
allowing DPR to solicit bids and enter into a concession
agreement after providing the Joint Legislative Budget
Committee, and appropriate fiscal and policy committees of the
Legislature, with 30 days prior written notice and opportunity
for review. Prior to this change, the law required concession
contracts with over $500,000 in anticipated revenues to be
approved, with limited exceptions, through the legislative
budget process. This frequently caused unnecessary delays in
the competitive bidding process and in execution of
agreements. In addition, the concession contracts often got
limited focus and attention when considered in the context of
all the other state budget change proposals. A narrow and
infrequently used alternative process requiring State Public
Works Board approval existed, but was applicable only in very
limited circumstances. The new requirement for 30 days prior
notice to the Joint Legislative Budget Committee allows for
the agreements to proceed without unnecessary delay, while
providing opportunity for more focused legislative review and
oversight.
This bill would extend similar reforms to the process for
approval of DPR leases and operating agreements. As with the
prior concession process, current law required proposed leases
of state park property for a period longer than 10 years, and
most operating agreements with public agencies and nonprofits,
to be approved through the same annual state budget process.
This bill allows such agreements to be approved by DPR after
30 days prior written notice to the Joint Legislative Budget
Committee, and appropriate fiscal and policy committees,
mirroring the process approved by the Legislature last year
for concession agreements.
3)Prior and related legislation: AB 549 (Levine), Chapter 559,
Statutes of 2015, streamlined the process for review and
approval of proposed state park concession agreements by
prohibiting a proposed state park concession contract expected
to involve a total investment or estimated annual gross sales
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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
Legislative Budget Committee for review. This bill would
establish a similar procedure for state park lease and
operating agreements.
AB 1579 (Allen) which is also pending in this committee would
extend from 20 days to 30 days the time period the Legislature
has to review a proposed state park operating lease, agreement
or amendment before it can be approved by the State Public
Works Board. AB 1579 and this bill both, as currently
drafted, amend the same code section. If both bills move
forward, the conflict between the two bills will need to be
resolved at some point in the legislative process, and to
avoid chaptering out problems.
4)Supporting Arguments: Supporters note this bill would build
on legislation enacted last year by streamlining the approval
process for state park operating agreements and leases, while
also providing timely legislative oversight and review.
5)Opposing Arguments: None received.
REGISTERED SUPPORT / OPPOSITION:
Support
Trust for Public Lands
AB 2549
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Opposition
None on file.
Analysis Prepared by:Diane Colborn / W., P., & W. / (916)
319-2096