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 ----------------------------------------------------------------- |Author: |Pavley | | | ----------------------------------------------------------------- ----------------------------------------------------------------- |Version: |March 19, 2015 Amended | ----------------------------------------------------------------- ----------------------------------------------------------------- |Urgency: |No |Fiscal: |Yes | ----------------------------------------------------------------- ----------------------------------------------------------------- |Consultant:|William Craven | | | | ----------------------------------------------------------------- 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 SB 204 (Pavley) Page 2 of ? 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. SB 204 (Pavley) Page 3 of ? 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. SB 204 (Pavley) Page 4 of ? 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, SB 204 (Pavley) Page 5 of ? 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 SB 204 (Pavley) Page 6 of ? 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 SB 204 (Pavley) Page 7 of ? None Received