Amended in Assembly June 23, 2016

Senate Bill No. 1111

Introduced by Senator Pavley

February 17, 2016

An act to amend begin delete Section end delete begin insert Sections 5003.17, 5080.40, and end insert 5080.42 begin delete of end delete begin insert of, and to add Article 1.5 (commencing with Section 520) to Chapter 1 of Division 1 of, end insert the Public Resources Code, relating to state parks.

LEGISLATIVE COUNSEL’S DIGEST

SB 1111, as amended, Pavley. State parks: operating agreements.

Existing law begin insert vests control of the state park system with the Department of Parks and Recreation and end insert authorizes the begin delete Department of Parks and Recreation end delete begin insert department end insert to enter into an operating agreement with a qualified nonprofit organization for the development, improvement, restoration, care, maintenance, administration, or operation of a unit or units, or portion of a unit, of the state parks system, as provided. Existing law provides that the department may only enter into an operating agreement for the entirety of a park unit for no more than 20 park units.

This bill would delete this provision. begin insert The bill would authorize the department to enter into a strategic partnership with a park support organization, as defined, to develop and secure expertise, services, resources, and projects that are not readily available to the state park system for specified purposes relating to the funding, maintenance, visitation, use, facilities, and staffing of state parks, as provided. The bill would require the department to take specified actions relating to the development and implementation of such a strategic partnership and would authorize the Director of the Department of Parks and Recreation, or the director’s designee, to serve as an ex officio, nonvoting member of the park support organization’s board of directors. The bill would require the department to collaborate with the park support organization to develop an annual list of strategic initiatives and projects that are priorities for the state park system. The bill would authorize the department to receive donations of projects, services, and funds to be used for the support of the state park system. The bill would specify that the Director of Finance and the Attorney General shall have 60 days to review and approve or disapprove any strategic partnership agreement or substantial amendment of such an agreement. end insert

begin insert

Existing law authorizes the department to lease, for any use, all or any portion of any parcel of real property acquired for state park system purposes, if the director finds that the use would be compatible with the use of the real property as a unit or part of a unit and with the sound management and conservation of resources within the unit, but prohibits the department from entering into a lease that extends beyond 10 years unless certain conditions for the review and approval of a proposed lease as part of the annual budget process are met.

end insert begin insert

This bill would revise certain of those conditions for the review and approval of a proposed lease by appropriate policy and fiscal Committees of the Legislature, including the Joint Legislature Budget Committee, as specified.

end insert

Vote: majority. Appropriation: no. Fiscal committee: yes. State-mandated local program: no.

The people of the State of California do enact as follows:

begin insert

begin insert SECTION 1. end insert   

end insert begin insert

The Legislature finds and declares all of the
following:

end insert begin insert

(a) Changes to existing law are necessary to facilitate
implementation of reforms that have been recommended by the
Parks Forward Commission to ensure vibrant and sustainable
parks for all Californians and for present and future generations.

end insert begin insert

(b) The Department of Parks and Recreation needs to establish
a new strategic partnership with a nonprofit park support
organization that would complement and support the work of the
department by bringing new resources, expertise, and flexibility
to assist the department in accomplishing its mission.

end insert

begin insert

begin insert SEC. 2. end insert   

end insert

begin insert Article 1.5 (commencing with Section 520) is added
to Chapter 1 of Division 1 of the end insert begin insert Public Resources Code end insert begin insert , to read: end insert

begin insert

 

Article begin insert 1.5. end insert   PARK SUPPORT ORGANIZATION

 

begin insert 520. end insert   

For purposes of this article, the following terms shall
have the following meanings:

(a) “Park support organization” means a nonprofit organization
that meets all of the following requirements:

(1) Is exempt from taxation pursuant to Section 501(c)(3) of the
Internal Revenue Code.

(2) Is established for the principal purpose of increasing park
access and visitation in ways that serve all Californians and
visitors to the state, promote healthy lifestyles and community
engagement, and support the protection and stewardship of
California’s natural, cultural, and historical lands, sites, and
resources.

(3) Complies with the Supervision of Trustees and Fundraisers
for Charitable Purposes Act (Article 7 (commencing with Section
12580) of Chapter 6 of Part 2 of Division 3 of Title 2 of the
Government Code).

(b) “Priority list” means the annual list of strategic initiatives
and projects developed by the department and park support
organization pursuant to Section 523.

begin insert 521. end insert   

(a) The department may enter into a strategic partnership
with a park support organization to develop and secure expertise,
services, resources, and projects that are not readily available to
the state park system, for all of the following purposes:

(1) To develop and engage new sources of public and private
funding for the state park system, including philanthropic sources
and enterprise and revenue generation activities, where
appropriate.

(2) To support marketing and communications activities that
promote the programs, amenities, and resources of the state park
system, the department, and its partners.

(3) To support projects that facilitate park access and visitation,
particularly among younger and more diverse audiences.

(4) To promote the human health and well-being of the state’s
residents.

(5) To establish and improve state park visitor amenities and
facilities.

(6) To recruit more diverse staffing and improve capacity for
state park programs.

(7) To advance the protection and stewardship of natural,
cultural, and historic lands, sites, and resources.

(b) If the department enters into a strategic partnership with a
nonprofit park support organization, it shall do all of the following:

(1) Collaborate with the park support organization, on an
ongoing basis, to identify, develop, and implement strategic
initiatives and projects that are priorities for the state park system.

(2) Communicate and coordinate with other park agencies,
partners, friends, and volunteers to ensure that activities
undertaken pursuant to the strategic partnership complement, and
do not supplant, ongoing partnerships, programs, and projects in
support of the state park system.

(3) Engage with the park support organization and other public
agencies and organizations that manage, operate, and support
other parks and protected lands in the state.

begin insert 522. end insert   

The director, or the director’s designee, may serve as an
ex officio, nonvoting member of the park support organization’s
board of directors in order to provide for effective communication
and coordination of efforts between the department and the park
support organization.

begin insert 523. end insert   

(a) If the department forms a strategic partnership with
a park support organization pursuant to this article, the department
shall collaborate with the park support organization to develop
an annual list of strategic initiatives and projects that are priorities
for the state park system and that the park support organization
will undertake in partnership with the department.

(b) Any initiative or project included on the priority list shall
be consistent with the purposes of subdivision (a) of Section 521.

(c) The department shall ensure that the priority list is prepared
in sufficient time to inform proposals for potential allocations of
funding in the annual Budget Act.

(d) The department shall post a copy of the priority list on its
Internet Web site, and shall provide copies of the list to the
chairpersons of the Senate Budget and Fiscal Review Committee,
the Assembly Committee on Budget, the Senate Natural Resources
and Water Committee, and the Assembly Water, Parks, and Wildlife
Committee.

begin insert 524. end insert   

(a) In order to establish and facilitate a strategic
partnership as described in subdivision (a) of Section 521, the
department shall enter into an agreement with the park support
organization that, at a minimum, shall include and specify all of
the following:

(1) Clear goals and objectives.

(2) Any commitments of oversight, staffing, and coordination
that are needed to accomplish the goals and objectives.

(3) The process for developing the priority list pursuant to
Section 523.

(b) (1) The department may develop and enter into
supplementary agreements with the park support organization for
the purposes of securing any expertise, capacity, or financial
resources that may be needed to identify, plan, develop, or
implement strategic initiatives and projects on the priority list.
Any such agreement may include, but not be limited to, grants,
contracts, memoranda of understanding, staff-sharing agreements,
leases, and rights of entry onto state park property.

(2) Notwithstanding Section 5003.17, the department may lease
to the park support organization, for a minimum rental of one
dollar ($1.00) per year, real property that is owned by the state
and included in any unit of the state park system, if the lease
agreement requires the park support organization to construct, or
provide for the construction of, a structure or improvement on the
leased property and specifies that title to the structure or
improvement shall vest in the state at the expiration of the lease
term. The agreement may provide for the means or method by
which title to the structure or improvement shall vest in the state
before the expiration of that term.

(3) Notwithstanding Part 2 (commencing with Section 10100)
of Division 2 of the Public Contract Code, any agreements entered
into by the department pursuant to this subdivision shall be under
the control of the department and shall not be subject to any
advertising or competitive bidding requirements applicable to
public works or other public projects.

(c) The director may receive donations of projects, services,
and funds from the park support organization as authorized by
Sections 5005, 5009.1, 5009.2, and 5009.3.

(d) Subject to the availability of funds appropriated for that
purpose and pursuant to an agreement established under
subdivision (b), the department may provide funds to the park
support organization for purposes of identifying, planning,
developing, or implementing strategic initiatives and projects on
the priority list.

(e) The Director of Finance and the Attorney General shall
have 60 days to review and approve or disapprove any strategic
partnership agreement or any substantial amendment to such
agreement, proposed under subdivision (a). Upon approval of the
agreement, or substantial amendment, the director may accept
donations and enter into agreements as authorized under
subdivisions (b) and (c).

begin insert 525. end insert   

Nothing in this article shall be interpreted as a limitation
on the ability of the park support organization to apply for, receive,
or administer grants, loans, or other funds from public entities
other than the department.

end insert

begin insert

begin insert SEC. 3. end insert   

end insert

begin insert Section 5003.17 of the end insert begin insert Public Resources Code end insert begin insert is
amended to read: end insert

5003.17.  

(a) The department may lease, for any use, all or any
portion of any parcel of real property acquired for state park system
purposes, if the director finds that the use would be compatible
with the use of the real property as a unit or part of a unit and with
the sound management and conservation of resources within the
unit.

(b) Rent shall be based on the fair market value of the property
when used for the purpose for which it is leased. All rent shall be
deposited pursuant to Section 5010.

(c) The lease term shall not exceed 10 years. All leases are
subject to the approval of the Department of General Services.

(d) No lease shall be entered into that extends beyond the
10-year period unless begin delete the Legislature has reviewed and approved
the proposed lease as part of the annual budget process, or the
Public Works Board has determined that the proposed lease could
not have been presented to the Legislature for review and approval
in the course of its consideration of the Budget Bill and that it
would be adverse to the interests of the public to defer that review
and approval to a time when the Legislature next considers a
Budget Bill. Upon making that determination, the board may
review and approve the proposed lease after giving at least 20
days’ written notice to the Chairperson of the Joint Legislative
Budget Committee and to the chairperson of the fiscal and
appropriate policy committees of its intended action. All actions
taken by the board pursuant to this subdivision shall be reported
to the Legislature in the next Governor’s Budget. end delete begin insert both of the
following conditions are met: end insert

begin insert

(1) At least 30 days’ prior written notice of the proposed lease,
including a copy of the proposed lease, has been provided by the
director to the appropriate policy and fiscal committees of the
Legislature, including the Joint Legislative Budget Committee.

end insert begin insert

(2) The director has included with the proposed lease sufficient
documentation to enable the Joint Legislative Budget Committee,
and any other appropriate legislative policy and fiscal committees,
to determine whether the lease conforms to the requirements of
this article and to evaluate fully all terms upon which the lease is
proposed to be let, including the amount of the rent and other
revenues that may be generated under the lease.

end insert

begin insert

begin insert SEC. 4. end insert   

end insert

begin insert Section 5080.40 of the end insert begin insert Public Resources Code end insert begin insert is
amended to read: end insert

5080.40.  

(a) No operating lease or agreement shall be entered
into, or amended, pursuant to this article unless begin delete one of the
following has occurred: end delete begin insert at least 30 days’ written notice and a copy
of the proposed operating lease or agreement, or amendment, has
been provided by the director to the appropriate policy and fiscal
committees of the Legislature and to the Joint Legislative Budget
Committee. end insert

begin delete

(1) The Legislature has reviewed the lease or agreement, or
amendment, as part of the annual budget process or the
requirements of paragraph (2) have been met.

(2) Following enactment of the annual Budget Act, the State
Public Works Board determines that the proposed lease or
agreement or amendment could not have been presented to the
Legislature for review during the annual budget process, or that
the proposed lease or agreement or amendment was reviewed
during the annual budget process but it is necessary to revise the
terms of the lease or agreement or amendment in a material respect,
and the State Public Works Board determines that it is adverse to
the interests of the public to defer that review to the next annual
budget process. Upon making its determination, the State Public
Works Board may review and approve the proposed lease or
agreement or amendment, or any revision thereof, not sooner than
20 days after the board has provided written notification to the
Chairperson of the Joint Legislative Budget Committee, the
Chairperson of the Assembly Ways and Means Committee, and
the Chairperson of the Senate Budget and Fiscal Review
Committee of the intended action. All actions taken by the State
Public Works Board pursuant to this paragraph shall be reported
to the Legislature in the next Governor’s Budget.

end delete

(b) The begin delete department end delete begin insert director end insert shall include with the proposed
lease or agreement or amendment sufficient documentation to
enable the begin delete Legislature or the State Public Works Board, as the case
may be, end delete begin insert Joint Legislative Budget Committee, and any other
appropriate policy or fiscal committees of the Legislature, end insert to
evaluate fully the estimated operating costs and revenues and all
terms upon which the lease or agreement or amendment is proposed
to be entered into. Specifically, the documentation shall identify
both of the following:

(1) Any anticipated costs to the state for operation or
development under the lease or agreement or amendment and the
anticipated state share of total operation and development costs.

(2) The anticipated annual revenues, net of operation costs, for
the unit and the state’s share of these revenues.

(c) Leases or agreements shall be exempt from subdivisions (a)
and (b) when all of the following conditions exist:

(1) The lease or agreement involves operation of only a portion
of a unit of the state park system.

(2) The term of the lease or agreement is for a period of 20 years
or less.

(3) The lease’s or agreement’s impact to the unit, including
concessions revenue, will not exceed five hundred thousand dollars
($500,000) in annual gross revenue generated on the property.

(4) The lease or agreement involves no significant change in
state operational funding or staffing levels, and does not include
present or future state expenditures for development of the unit.

(d) Amendments to existing leases or agreements shall be
exempt from subdivisions (a) and (b) when all of the following
conditions exist:

(1) The amendment involves operation of only a portion of a
unit of the state park system.

(2) The amendment’s impact to the unit will not exceed five
hundred thousand dollars ($500,000) in annual gross revenue
generated on the property.

(3) The amendment involves no significant change in state
operational funding or staffing levels, and does not include present
or future state expenditures for development of the unit.

begin delete SECTION 1. end delete

begin insert SEC. 5. end insert   

Section 5080.42 of the Public Resources Code is
amended to read:

5080.42.  

(a) Notwithstanding any other provision of this
article, the department may enter into an operating agreement with
a qualified nonprofit organization for the development,
improvement, restoration, care, maintenance, administration, or
operation of a unit or units, or portion of a unit, of the state park
system, as agreed to by the director. The prohibition on park
closures, pursuant to subdivision (a) of Section 541.5, does not
limit the department’s authority to enter into an operating
agreement pursuant to this section, as provided in subdivision (e)
of Section 541.5. An operating agreement with a qualified nonprofit
organization shall include, but shall not be limited to, the following
conditions:

(1) The district superintendent for the department shall provide
liaison with the department, the nonprofit organization, and the
public.

(2) The nonprofit organization shall annually submit a written
report to the department regarding its operating activities during
the prior year and shall make copies of the report available to the
public upon request. The report shall be available on the Internet
Web sites of both the department and the nonprofit organization.
The report shall include a full accounting of all revenues and
expenditures for each unit of the state park system that the
nonprofit organization operates pursuant to an operating agreement.

(3) (A) Except as provided in subparagraph (B), all revenues
that the qualified nonprofit organization receives from a unit shall
be expended only for the care, maintenance, operation,
administration, improvement, or development of the unit. The
qualified nonprofit organization may additionally contribute in-kind
services and funds raised from outside entities for the care,
maintenance, operation, administration, improvement, or
development of the unit.

(B) If the qualified nonprofit organization determines that the
revenues it has received from a unit are in excess of the revenues
that are needed for the care, maintenance, operation, administration,
improvement, or development of that unit, and that these funds
are not already specified for or committed to specific purposes
pursuant to an existing agreement or contract restricting the use
of those funds, the qualified nonprofit organization may dedicate
those excess revenues to another state park unit for that unit’s care,
maintenance, operation, administration, improvement, or
development.

(4) General Fund moneys shall not be provided to a nonprofit
organization to subsidize the operation or maintenance of a park
unit. This paragraph applies to state parks, the full operation of
which are turned over to a nonprofit organization, but does not
apply to or preclude the department from entering into agreements
with nonprofit organizations to operate a portion of a state park
unit, or from entering into comanagement agreements with
nonprofit organizations that involve the sharing of operational and
financial responsibilities for the park unit and that have the effect
of reducing state costs. This paragraph does not apply to park
entrance fees, concession revenues, or any other revenues generated
within a park operated by a nonprofit organization pursuant to this
section.

(b) An operating agreement entered into pursuant to subdivision
(a) shall honor the existing term of a current concession contract
for the state park unit subject to the operating agreement.

(c) An operating agreement entered into pursuant to subdivision
(a) shall specify the duties that the nonprofit organization shall be
responsible for carrying out relative to management and protection
of natural, historical, and cultural resources, and shall identify
those management duties that shall continue to be conducted by
the department, so that all core operations of the park are
delineated. Scientific, architectural, and engineering functions that
require special expertise or professional training shall only be
conducted by or under the supervision of qualified persons with
applicable expertise or training and subject to oversight by the
department.

(d) This section does not supersede the requirements of Section
5019.53 regarding the protection of natural, scenic, cultural, and
ecological values.

(e) The nonprofit organization and the district superintendent
for the department shall, following submittal of the annual report
pursuant to subdivision (a), hold a joint public meeting for
discussion of the report.

(f) If the department intends to enter into an operating agreement
for the development, improvement, restoration, care, maintenance,
administration, or operation of a unit or units, or a portion of a
unit, the department shall notify the Member of the Legislature in
whose district the unit is located, the Chair of the Senate Committee
on Natural Resources and Water, the Chair of the Assembly
Committee on Water, Parks, and Wildlife, and the chairs of the
Assembly and Senate budget committees of that intention. The
notification shall include estimated operating costs and revenues
and core duties and responsibilities that are likely to be assigned
to the nonprofit organization and the department.

(g) For purposes of this section, a qualified nonprofit
organization is an organization that is all of the following:

(1) An organization that is exempt from taxation pursuant to
Section 501(c)(3) of the Internal Revenue Code.

(2) An organization that has as its principal purpose and activity
to provide visitor services in state parks, facilitate public access
to park resources, improve park facilities, provide interpretive and
educational services, or provide direct protection or stewardship
of natural, cultural, or historical lands, or resources.

(3) An organization that is in compliance with the Supervision
of Trustees and Fundraisers for Charitable Purposes Act, Article
7 (commencing with Section 12580) of Chapter 6 of Part 2 of
Division 3 of Title 2 of the Government Code.

(h) (1) Notwithstanding Section 10231.5 of the Government
Code, the department shall provide a report to the Legislature, on
a biennial basis, of the status of operating agreements it has entered
into pursuant to this section. The report shall include a list of units
of the state park system with operating agreements, discussion of
the management and operations of each unit subject to an operating
agreement, an accounting of the revenues and expenditures incurred
under each operating agreement, and an assessment of the benefit
to the state from operating agreements entered into pursuant to
this section.

(2) A report submitted pursuant to paragraph (1) shall be
submitted in compliance with Section 9795 of the Government
Code.