BILL ANALYSIS Ó SB 204 Page 1 Date of Hearing: June 30, 2015 ASSEMBLY COMMITTEE ON WATER, PARKS, AND WILDLIFE Marc Levine, Chair SB 204 (Pavley) - As Amended June 24, 2015 SENATE VOTE: 35-2 SUBJECT: State parks. SUMMARY: Declares the values of state parks to the state's historical, natural and cultural heritage; requires the Department of Parks & Recreation (DPR) to report to the Legislature on projects in state parks that will reduce greenhouse gas emissions; and expands and clarifies authorities of DPR related to state park general plans, nonprofit operating agreements, construction contracts, and youth services. Specifically, this bill: 1)Requires the Director of DPR to promote and regulate the use of the state park system in a manner that conserves the scenery, natural and historic resources, and wildlife in the individual units of the system for the enjoyment of future generations. States legislative findings and declarations regarding the importance of California's state parks to protecting the state's historical, natural and cultural heritage. SB 204 Page 2 2)Requires DPR, on or before December 1, 2016, to report to the Legislature on 10 projects within units of the state park system that may provide the most significant greenhouse gas reductions. States legislative findings and declarations regarding the need for DPR to identify its energy costs and potential energy reducing projects that may be eligible for funding from state cap and trade revenues. 3)With regard to state park unit general plans, authorizes DPR, for park units for which minimal development may be proposed, to prepare a management plan or development plan that includes appropriate environmental review and analysis as an alternative to a state park general plan. 4)Deletes the January 1, 2019 repeal date on existing law authorizing DPR to enter into agreements with qualified nonprofit organizations for operation of a state park unit, thereby extending the operation of that section indefinitely. 5)Deletes the limitation on nonprofit operating agreements that involve the operation of the entirety of a park unit. 6)Authorizes DPR to accept donations of real property or money from public or private sources to be used for the purpose of funding park programs to benefit youth. Authorizes DPR, notwithstanding other provisions of law relating to contracts for services, to enter into agreements that may involve the transfer of funds appropriated to DPR with public or nonprofit youth serving organizations to provide service and learning opportunities for young people by performing work on state park system programs and projects under the supervision of DPR employees, where the work is not being performed by state park employees, as specified. SB 204 Page 3 7)States legislative findings and declarations regarding the values of volunteers in state parks, and DPR's practice of providing complimentary passes to park volunteers. States legislative intent that DPR extend such offers to persons who volunteer at state parks through cooperating associations. 8)Expands the types of services that cooperating associations may provide in state parks to include other materials and services that enhance the visitor experience. Also states legislative intent that DPR not compete with existing concession contracts providing food and beverage services to the public. 9)Authorizes DPR to renegotiate a concession contract if the services provided pursuant to the contract will have minimal impacts on state park resources, are inherently mobile or transitory in nature, and do not occupy a state-owned structure, including but not limited to, mobile food and beverage services. 10)Increases the existing threshold for DPR construction projects that are subject to competitive bidding from $25,000 in project costs to $750,000. EXISTING LAW: 1)Establishes DPR and vests DPR with control of the state park system. 2)Requires DPR to prepare general plans for units of the state park system following classification of a unit by the State Park and Recreation Commission, and prior to the development of any new facilities in any previously classified unit. SB 204 Page 4 3)Pursuant to the California Environmental Quality Act, requires a lead agency to conduct an environmental analysis and review of a project that may have a significant effect on the environment, and to prepare or cause to be prepared an environmental impact report or a negative declaration if it determines the project will not have a significant effect. 4)Authorizes DPR, until January 1, 2019 to enter into an operating agreement with a qualified nonprofit organization for the development, improvement, restoration, care, maintenance, administration, or operation of a unit, units, or portion of a unit of the state park system. 5)Requires DPR, for construction projects exceeding $25,000 in costs, to solicit competitive bids and award the contract to the lowest qualified bidder. Authorizes the director of the Department of General Services (DGS) to authorize DPR to carry out work in excess of $25,000 by day labor if the director, in consultation with DPR, determines that the award of the contract through competitive bidding is not in the best interests of the state. FISCAL EFFECT: According to the Senate Appropriations Committee, pursuant to Senate Rule 28.8, negligible state costs. COMMENTS: This bill enacts several statutory changes designed to facilitate implementation of reforms to the state park system recommended by the Parks Forward Commission. 1)Author's Statement: The author has proposed this bill to facilitate implementation of reforms to California's state park system recommended by the Parks Forward Commission. The SB 204 Page 5 author indicates that the amendments to this bill were crafted after careful discussions with the Administration and other stakeholders, and in conjunction with AB 549 (Levine), an Assembly vehicle for additional reforms at state parks. The author emphasizes that the recommendations of the Parks Forward Commission, the establishment of a Transformation Team that is active inside DPR, reform discussions by the Parks & Recreation Commission, and recommendations by key stakeholders are all converging and driving changes at DPR. The author adds that this bill continues the approach of creating ways DPR can help itself financially without sacrificing the important purposes for which state parks were created, but focuses most immediately on ways to improve and expand relationships with nonprofits, cooperating associations, and other partners. This bill also emphasizes philanthropic contributions, and non-general fund revenue such as potential cap and trade auction revenues as potential sources of funding for parks, and recommends changes in how DPR approves general plans and development plans for parks. 2)Background: The Legislature in 2012, following a time of threatened state park closures and other financial irregularities at state parks, called for creation of a multidisciplinary advisory council, to conduct an independent assessment and make recommendations to the Legislature and Governor on reforms needed to ensure the long-term sustainability of the state park system. The Parks Forward Commission was subsequently appointed by the Secretary of Natural Resources to conduct that review in 2013. The Commission released its final report on January 30, 2015. This committee held a joint oversight hearing on the report's findings and recommendations on February 24, 2015. The Parks Forward Commission's report includes recommendations in the following focus areas: SB 204 Page 6 a) Recommendations for internal reforms to update and modernize DPR's budgeting processes, organizational structure, and technological capacity; b) Recommendations for increasing and strengthening partnerships, including creation of a new nonprofit partner; c) Expanding access and relevancy of state parks for underserved communities, including youth outreach; d) Protecting and renewing California's natural and cultural heritage and addressing climate change; e) Identifying a stable diversified funding structure, including greater park revenue generation, and dedicated public and private funding sources; f) Broadening eligibility for district superintendent positions to include other disciplines in addition to peace officer training. The Resources Agency and Department have appointed a Transformation Team that is working on implementation of the Parks Forward Commission's recommendations. This bill and AB 549 were introduced to serve as legislative vehicles for statutory changes that will assist DPR in the implementation process. Key changes proposed by this bill include: a) Requires DPR to report on energy-related infrastructure needs in state parks that may be eligible for cap and trade revenues. b) Expands the services that cooperating associations can SB 204 Page 7 provide in state parks. c) Authorizes DPR to enter into agreements with youth-serving non-profits, including opportunities for youth to provide services in state parks. d) Expands and extends existing authority for nonprofit operating agreements in parks. e) Authorizes DPR to complete development plans in state parks as an alternative to a full general plan for a state park unit. f) Authorizes DPR to give free park passes to volunteers of park cooperating associations. g) Increases the threshold for competitive bidding requirements for park construction projects from $25,000 to $750,000. (Note: the $25,000 limit was added by statute in 1982 and has not been increased since that time.) 3)Double-referral: This bill, if passed by this committee, is double-referred to the Assembly Natural Resources Committee. 4)Prior and related legislation: AB 549 (Levine), which is pending in the Senate, would enact additional provisions expanding DPR's ability to contract with nonprofits for the benefit of state parks, and for DPR to receive philanthropic contributions for state parks. AB 549 also calls for development of a state park fee policy that balances the state's goal of providing affordable public access to state parks with the state's goal of appropriate revenue generation. SB 204 Page 8 AB 42 (Huffman), Chapter 450, Statues of 2011, authorized DPR to enter into operating agreements with nonprofits to operate state park units that were threatened with closure. AB 1589 (Huffman), Chapter 533, Statutes of 2012, and AB 1478 (Blumenfield), Chapter 530, Statues of 2012, both called for creation of an independent commission to conduct a comprehensive review and provide recommendations on long-term sustainability of the state park system, which led to creation of the Parks Forward Commission. AB 594 (Assembly Water, Parks & Wildlife Committee), Chapter 407, Statutes of 2013, among other things, required that the incremental revenue generated from DPR's revenue generation program be deposited in the State Parks Revenue Incentives Subaccount. It also provided that in the event that future budget reductions necessitate changes in the continued operation of state park units, that DPR should achieve any required budget reductions by implementing efficiencies and increasing revenue collection or reducing services, and that full park closures be considered only as a last resort. 5)Support arguments: Supporters emphasize the provisions continuing the authorization for nonprofit partnership agreements and authority for DPR to accept donations of real property and funding, particularly where it will be used to benefit youth, and encourage youth participation in public service and park protection. Other supporters highlight the language promoting conservation of natural resources in parks. 6)Opposition arguments: None received REGISTERED SUPPORT / OPPOSITION: Support SB 204 Page 9 American Federation of State, County and Municipal Employees Amigos de Bolsa Chica California Association of Professional Scientists (CAPS) California Council of Land Trusts California Park & Recreation Society Cycling Development East Bay Regional Park District Folsom Auburn Trail Riders Action Coalition Friends of El Dorado Trail Latino Outdoors Loomis Basin Horsemen's Association Peninsula Open Space Trust Save the Redwoods League SB 204 Page 10 State Park Partners Coalition Sonoma County Agricultural and Open Space District Student Conservation Association Tahoe Area Mountain Biking Association Opposition None on file. Analysis Prepared by:Diane Colborn / W., P., & W. / (916) 319-2096