BILL ANALYSIS                                                                                                                                                                                                    Ó



          SENATE COMMITTEE ON NATURAL RESOURCES AND WATER
                             Senator Fran Pavley, Chair
                                2015 - 2016  Regular 

          Bill No:            SB 204          Hearing Date:    March 24,  
          2015
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          |Author:    |Pavley                 |           |                 |
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          |Version:   |March 19, 2015    Amended                            |
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          |Urgency:   |No                     |Fiscal:    |Yes              |
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          |Consultant:|William Craven                                       |
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                               Subject:  State parks.
          
          BACKGROUND AND EXISTING LAW
          1. The California Department of Parks and Recreation  
          (department) 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. The department 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 the department established several reforms by which the  
          department was empowered to improve its own fiscal health:  the  
          department's authority to collect fees, rents, and other returns  
          for the use of state parks was expanded; it was authorized to  
          sell additional annual and regional passes and to enter a wider  
          array of concession contracts. Those statutory changes also  
          established a revenue generation program, added ex-officio  
          legislative members to the California State Parks and Recreation  
          Commission, and directed the establishment of a citizen review  
          panel, the Parks Forward Commission, whose final report was  
          released earlier this year. 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. 


          The key recommendations of the Parks Forward Commission were: 1)  
          to create a "transformation team" within the department to  







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          improve internal procedures including technologies to assist  
          with budgeting, planning, and project implementation; 2) to  
          improve relationships with nonprofit and other partners; 3) to  
          create 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; 4) to improve cultural and resource protection  
          programs; 5) to expand access to parks including to those from  
          park-poor and other disadvantaged communities. 


          3. The department is also authorized, under specified  
          conditions, to enter into agreements with co-operating  
          associations (often "friends" groups at a  particular state  
          park), operating agreements (through which a third party  
          operates a state park), and concession agreements (by which a  
          private firm provides certain services to the public). 


          4. Existing law also requires that a general plan be developed  
          for park units and that such plans are subject to the California  
          Environmental Quality Act. 


          5. In addition to the Parks Forward report, reform concepts have  
          come from within the Department, from nonprofit and other  
          partners, from the members of the California State Parks and  
          Recreation Commission, and the public. 


          PROPOSED LAW
          This bill includes several provisions that have been offered by  
          various parks stakeholders including  the Parks Forward  
          Commission, non-profit and other partners, and from discussions  
          held among members of the California State Parks and Recreation  
          Commission.  Its provisions would: 

          1. Require a report on energy costs and ten top priority  
          energy-related infrastructure needs at the department that could  
          be eligible for cap and trade dollars. 

          2. Expand the services that nonprofit cooperating associations  
          can provide when concessionaires are not able to provide those  
          materials and services. 








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          3. Authorize the department to enter  into agreements with  
          youth-serving non-profits both for educational as well as  
          restoration  purposes.

          4. Expand long-term operating agreements at parks on a limited  
          basis at parks which are at risk for closure.

          5. Permit, on a trial basis, a development plan at a park unit  
          to go through a separate CEQA process than included with the  
          CEQA analysis of a general plan for a park unit. 

          6. Authorize the department to solicit private funds to  
          establish endowments for parks with long-term operating  
          agreements and to fund the agreements with the youth-serving  
          non-profit organizations.

          7. Require that volunteers of the parks cooperating associations  
          get the same complimentary passes as volunteers of the  
          department. 

          8. Add findings and declaration regarding the importance of  
          state parks and are similar to those used by the National Park  
          Service that would be administered by the director.  

          9. Add a finding that the department not compete with existing  
          concessionaire agreements with new agreements that would offer  
          comparable food and beverage services. 

          ARGUMENTS IN SUPPORT
          According to the author, there is a certain relief that the past  
          several years of problems at the Department of Parks and  
          Recreation are becoming eclipsed by a refreshing focus on the  
          latest reforms that need to be made to improve and renew the  
          department for the benefit of the public and the visitors to  
          state parks. The recommendations of the Parks Forward  
          Commission, the establishment of a Transformation Team at the  
          department, active discussions about reforms by the Parks and  
          Recreation Commission, and recommendations by key stakeholders  
          are all converging to make a strong case for the sorts of  
          changes that are needed at the department. The leadership of the  
          department and the administration has sent a strong signal of  
          support for these reform efforts. 









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          This bill, although a work in progress, will gradually be  
          expanded after careful discussions with the administration and  
          other stakeholders to become a very focused approach that offers  
          constructive solutions to the Department of Parks. 

          The theme of much of the recent legislation has been to create  
          ways that the department can help itself financially without  
          sacrificing the important purposes for which these parks were  
          established. This bill will continue that approach but will  
          focus most immediately on ways to improve relationships with  
          nonprofits, cooperating associations ("friends" groups at state  
          parks) and other partners. This bill will also emphasize greater  
          agility at the department in obtaining funds from the private  
          philanthropic sector as well as positioning itself to take  
          advantage of non-general fund revenue such as potential cap and  
          trade auction revenues. It also recommends a change in how the  
          department approves general plans and development plans. 

          ARGUMENTS IN OPPOSITION
          None received. 

          COMMENTS
          1. The provision on identifying energy costs is intended by the  
          author to attempt to focus the department on another possible  
          revenue source for some of its unfilled maintenance needs that  
          could also be beneficial in terms of reducing greenhouse gas  
          emissions from state park units that may not have efficient or  
          carbon-friendly energy plants. 

          2. The provision expanding agreements to youth-serving  
          nonprofits is designed not only to offer educational experiences  
          to these groups but also to authorize the department to have  
          these groups undertake appropriate training and to conduct  
          restoration activities under the supervision of the department  
          at state parks. The bill would authorize these groups to have  
          some training and other costs underwritten by private  
          philanthropies or other funds as they become available. Such  
          activities would necessarily adhere to existing employment  
          protections of state employees. 

          3. Expanding the services that nonprofit cooperating  
          associations can provide when concessionaires are not able to  
          provide those materials and services directly addresses the call  
          to improve relationships with nonprofits.  Currently,  








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          cooperating associations as well as concessionaires may provide  
          educational and interpretative materials. Concessionaires are  
          also able to provide whatever they contract for with the  
          department. Cooperating associations may be able to offer  
          non-educational and non-interpretive materials but only when a  
          concessionaire is not able to provide those materials or  
          services.This provision, which requires further development,   
          would clarify that cooperating associations may provide a fuller  
          range of goods and services to enhance the experience of  
          visitors. Funds generated pursuant to this provision would  
          remain in the park in which those funds were generated. 

          4. The provision to expand long-term operating agreements at  
          parks which are at risk for closure is intended to be a trial at  
          which some of the more advanced non-profits could propose  
          operating a park, raising necessary revenue, and thereby relieve  
          some financial pressures on the department. Currently variations  
          of this model at which revenues generated in these parks are  
          retained locally are used in the Santa Cruz county parks and at  
          the Presidio State Park in Santa Barbara. Conditions and terms  
          of such agreements are subject to negotiation and approval by  
          the department and this provision would sunset to provide for an  
          assessment of its effectiveness. 

          5. The proposal to change the review of general plans is  
          intended to offer a practical solution to the approval of state  
          park general plans that do not propose any developments that  
          would affect the environment.  As the findings set forth, the  
          current process is not sustainable. Under this proposal, all  
          developments and all general plans that propose developments  
          would be subject to CEQA. What would not be subject to CEQA are  
          general plans that do not propose projects. The author needs to  
          establish the public participation framework for general plans  
          that do not propose development plans and the statutory  
          framework for these more "vision-statement" type general plans. 

          6. The proposal to authorize the department to solicit private  
          funds to establish endowments for parks with long-term operating  
          agreements and to fund the agreements with the youth-serving  
          non-profit organizations is intended to broaden possible funding  
          streams to the department.  Endowments-specifically the  
          investment interest from endowments-have obvious appeal in those  
          situations in which they can be developed.  However, the new  
          outside entity recommended by the Parks Forward Commission may  








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          be able to help with this, as may other donors and cooperating  
          associations with more access to capital.  The proposal is also  
          to allow private donors to fund the agreements between the  
          department and youth-serving organizations. This too is a  
          proposal that may be expanded as the bill progresses. In any  
          event, authorizing the creation of these endowments and the  
          funding of these new youth nonprofits is a necessary first step.  


          7. Requiring  that volunteers of the parks cooperating  
          associations receive the same complimentary passes as volunteers  
          of the department  is a provision requested by volunteers for  
          co-operating associations who consider it a matter of fairness  
          and a way to enhance the volunteer experience. 

          8. The findings and declarations regarding the importance of  
          state parks that would be administered by the director and that  
          are similar to those used by the National Park Service are  
          intended to plug a somewhat unusual hole in California  law in  
          that California does not have a general statement of policy  
          regarding state parks. The proposed language includes all of the  
          various sorts of parks in the state, as well as all of the  
          traditions that are protected by these parks. It speaks to the  
          strength of the entire state park system, not just individual  
          parks, and it encourages the director of the department to  
          conserve the scenery, natural and historic objects, and wild  
          life in such means as will leave them unimpaired for the  
          enjoyment of future generations.  

          9. The proposed finding that the department not compete with  
          existing concessionaire agreements with new agreements that  
          would offer comparable food and beverage services is a request  
          from the state concessionaire's organization. 

          SUGGESTED AMENDMENTS 
          
          AMENDMENT 1
               At the appropriate time, Mr. Levine has asked to be listed  
               as a principal co-author. 
               
          SUPPORT
          American Federation of State, County and Municipal Employees

          OPPOSITION








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          None Received