BILL ANALYSIS Ó AB 2909 Page 1 Date of Hearing: April 27, 2016 ASSEMBLY COMMITTEE ON APPROPRIATIONS Lorena Gonzalez, Chair AB 2909 (Committee on Water, Parks, and Wildlife) - As Amended April 5, 2016 ----------------------------------------------------------------- |Policy |Water, Parks and Wildlife |Vote:|14 - 0 | |Committee: | | | | | | | | | | | | | | |-------------+-------------------------------+-----+-------------| | | | | | | | | | | | | | | | |-------------+-------------------------------+-----+-------------| | | | | | | | | | | | | | | | ----------------------------------------------------------------- Urgency: No State Mandated Local Program: NoReimbursable: No SUMMARY: This committee bill clarifies what information must be included in a cost projection for activities funded by the State Parks Revenue Incentive Subaccount, and requires the Department of AB 2909 Page 2 Parks & Recreation (DPR) to provide quarterly accounting to donors of record for all expenditures made from the donated funds. FISCAL EFFECT: Increased ongoing annual costs to DPR of approximately $100,000 (GF). COMMENTS: 1)Purpose. This noncontroversial committee bill clarifies the information that must be included in cost analyses required for state park revenue generation projects and improves the accounting provided to state park donors. 2)Background. DPR manages a system of 280 parks covering more than 1.5 million acres of the State's natural, cultural and historic sites. In 2011, DPR was in serious financial trouble and proposed closing 70 parks. In response, SB 1018 (Committee on Budget), Chapter 39, Statutes of 2012 was enacted to require DPR to develop a revenue generation program as an essential component of a long-term sustainable park funding strategy. Expenditures of funds used to increase revenue generation for parks were required to include a clear description of the use of the funds, an implementation plan, a projection of costs and revenues, and a projected rate of return. This bill clarifies that cost projections include costs that are appropriate to the project. AB 549 (Levine), Chapter 559, Statutes of 2015, streamlined the process for review and approval of proposed state park AB 2909 Page 3 concession agreements, and clarified DPR's authority to accept donations of funds, services and projects for support of state parks. This bill requires quarterly reporting to donors on the use of their donation. Analysis Prepared by:Jennifer Galehouse / APPR. / (916) 319-2081