BILL ANALYSIS                                                                                                                                                                                                    Ó



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          Date of Hearing:  June 28, 2016


                  ASSEMBLY COMMITTEE ON WATER, PARKS, AND WILDLIFE


                                 Marc Levine, Chair


          SB  
          1111 (Pavley) - As Amended June 23, 2016


          SENATE VOTE:  36-0


          SUBJECT:  State parks:  operating agreements


          SUMMARY:  Deletes the limitation on the number of state park  
          units for which the Department of Parks and Recreation (DPR) can  
          enter into an operating agreement with a qualified nonprofit  
          organization, where the agreement is to operate the entirety of  
          the unit, and authorizes the DPR to enter into a strategic  
          partnership with a qualified nonprofit organization.    
          Specifically, this bill:  


          1)Deletes the limitation on the number of state park units that  
            the DPR can enter into an operating agreement with a qualified  
            nonprofit organization to operate where the agreement is for  
            operation of the entirety of a state park unit.


          2)States legislative findings and declarations regarding the  
            need for changes in law to facilitate implementation of  
            reforms recommended by the Parks Forward Commission, including  
            enabling the DPR to establish a new strategic partnership with  
            a nonprofit park support organization that complements and  








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            supports the work of the DPR by bringing new resources,  
            expertise and flexibility to assist the DPR in accomplishing  
            its mission.


          3)Authorizes the DPR to enter into a strategic partnership with  
            a nonprofit park support organization to develop and secure  
            expertise, services, resources, and projects that are not  
            readily available to the state park system, for the following  
            purposes:


               a)     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;


               b)     To support marketing and communications activities  
                 that promote the state park system, the DPR, and its  
                 partners;


               c)     To support projects that facilitate park access and  
                 visitation;


               d)     To promote the human health and wellbeing of the  
                 state's residents;


               e)     To establish and improve state park visitor  
                 amenities and facilities;


               f)     To recruit more diverse staffing and improve  
                 capacity for state park programs; and










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               g)     To advance protection and stewardship of natural,  
                 cultural, and historic resources.


          4)Requires the DPR, if it enters into a strategic partnership,  
            to do all of the following:


               a)     Collaborate with the park support organization on an  
                 ongoing basis on strategic initiatives and projects that  
                 are priorities for the state park system; 


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


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


          5)Authorizes the director of the DPR or the director's designee  
            to serve as an ex officio, nonvoting member of the park  
            support organization's board of directors.


          6)Requires the DPR to collaborate with the park support  
            organization to develop an annual list of strategic  
            initiatives and projects that are priorities for state parks,  
            and that the park support organization will undertake in  
            partnership with the DPR.  Requires the DPR to ensure the  
            priority list is prepared sufficiently in time to inform  
            proposals for potential allocations of funding in the annual  
            state budget.









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          7)Requires the DPR to post the priority list on its website and  
            provide copies to legislative committees, as specified.


          8)Requires the agreement between the DPR and the park support  
            organization to include clear goals and objectives, any  
            commitments of oversight, staffing and coordination needed,  
            and the process for developing the priority list of  
            initiatives and projects.


          9)Authorizes the DPR to enter into supplementary agreements as  
            may be needed to implement strategic initiatives and projects  
            on the priority list that the DPR and support organization  
            agree to undertake.  Provides that such agreements may include  
            grants, contracts, memoranda of understanding (MOUs),  
            staff-sharing agreements, leases, and rights of entry onto  
            state park property.  Provides that the agreements shall be  
            under the charge and control of the DPR and shall not be  
            subject to competitive bidding requirements.


          10)Specifically authorizes the DPR to lease to the park support  
            organization for a minimum rental of one dollar per year, real  
            property in the state park system for the purposes of  
            constructing a building or improvement on the property for use  
            of the state park system, title to which will vest in the  
            state park system.


          11) Clarifies the DPR may receive donations of projects,  
            services, and funds from the park support organization as  
            authorized under existing law.


          12)Authorizes the DPR, subject to availability of funds  
            appropriated for that purpose, to provide funds to the park  
            support organization for purposes of identifying, planning,  








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            developing or implementing strategic initiatives and projects  
            on the priority list.


          13)Requires 60 days review and approval of any strategic  
            partnership agreement, or any substantial amendments to the  
            agreement, by the Director of Finance and the Attorney  
            General.


          14) Amends existing law regarding approval of operating  
            agreements and leases to require 30 days advance written  
            notice of a proposed operating agreement or lease agreement to  
            the Joint Legislative Budget Committee (JLBC) and the chairs  
            of the appropriate policy and fiscal committees of the  
            Legislature.  Requires the DPR to provide sufficient  
            documentation to enable the JLBC to evaluate fully the  
            proposed agreement and estimated costs and revenues.  


          EXISTING LAW:


          1)Establishes the DPR and vests the DPR with control of the  
            state park system.


          2)Authorizes the DPR to enter into an operating agreement with a  
            qualified nonprofit organization to operate a unit or units of  
            the state park system.  Limits the number of operating  
            agreements that the DPR may enter into where the agreement is  
            for the entirety of a park unit to no more than 20 units.


          3)Prohibits a proposed state park concession contract, expected  
            to involve a total investment or estimated annual gross sales  
            in excess of $1 million, from being advertised for bid,  
            negotiated, or materially amended unless and until at least 30  
            days advance written notice is provided to the appropriate  








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            policy and fiscal committees of the Legislature and the JLBC  
            for review.


          4)Prohibits the DPR from entering into an operating lease or  
            agreement unless the Legislature has reviewed the lease or  
            agreement as part of the annual budget process, or following  
            enactment of the annual Budget Act, the State Public Works  
            Board determines that the agreement could not be presented  
            during the budget process and it would be adverse to the  
            interests of the public to defer action to the next annual  
            budget process, in which case the Public Works Board may  
            review and approve the lease after giving the JLBC and the  
            chair of the fiscal and appropriate policy committees 20 days  
            written notice.


          5)Similarly prohibits the DPR from entering a lease agreement  
            for state park property that extends beyond a 10 year period  
            unless the Legislature has reviewed and approved the proposed  
            lease as part of the annual budget process, or following  
            enactment of the Budget, the Public Works Board determines  
            that the concession could not be presented for review as part  
            of the budget process and it would be adverse to the interests  
            of the public to defer action, in which case the Public Works  
            Board may review and approve the lease after giving the JLBC  
            and the chair of the fiscal and appropriate policy committees  
            20 days written notice.


          6)Authorizes the DPR to accept donations of funds, services and  
            improvements for state parks.    


          FISCAL EFFECT:  According to the Senate Appropriations Committee  
          analysis, pursuant to Senate Rule 28.8, negligible state costs.


          COMMENTS:   This bill eliminates the existing cap on the number  








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          of state park units that can be subject to a nonprofit operating  
          agreement.  It also authorizes the DPR to enter into a strategic  
          partnership with a qualified nonprofit organization to provide  
          services and support to the DPR for the benefit of the state  
          park system.  The author indicates that this bill makes changes  
          in state law that are necessary to ensure the DPR can work  
          effectively and efficiently with a new state park support  
          organization. 


          1)Author's Statement:  According to the author, the limit of 20  
            state parks that may be subject to nonprofit operating  
            agreements is somewhat arbitrary, and is likely to be exceeded  
            in the not-too-distant future as more parks are operated  
            pursuant to operating agreements.  Currently, the DPR has  
            identified nearly 15 parks that have operating agreements.

          The Parks Forward Commission recommended creation of an  
            independent non-profit entity to provide assistance to the DPR  
            in areas where the DPR needs help, especially with the  
            long-term stability of the state park system, and expanding  
            the DPR's abilities to work with partners. The proposed new  
            entity is required to work collaboratively with the DPR, while  
            also engaging partners, local communities, and nonprofit  
            groups. The entity is directed in this bill to develop new  
            sources of public and private funding for the DPR, to support  
            marketing and communications, to expand park access and  
            visitation, particularly among younger and more diverse  
            audiences, and to recruit more diverse staffing and capacity  
            for state park programs, among other provisions.  

          This bill provides that the nonprofit and the DPR would jointly  
            develop priorities which is important to ensure that the  
            nonprofit and the DPR work together as much as practical. This  
            bill provides that the DPR and the entity may enter into an  
            MOU to further the relationship between the two parties. The  
            DPR is authorized to enter into agreements with the new entity  
            to secure expertise or capacity not readily available to the  
            DPR, and for projects that are mutually agreed upon.  The DPR  








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            is authorized to enter into leases for $1 per year if the new  
            entity constructs a building that is ultimately turned over to  
            the DPR. Such buildings are not subject to competitive bidding  
            requirements. This will result in a streamlined approach that  
            the Parks Forward Commission recommended. The DPR is  
            authorized to transfer funds to the nonprofit, subject to  
            terms and conditions approved by the DPR and appropriation by  
            the Legislature, and subject to review by the Department of  
            Finance and the Attorney General.

          In another provision, this bill changes the terms of when  
            operating agreements and leases may be entered into by the  
            DPR, to require a review by the JLBC rather than by the annual  
            budget process and by the Public Works Board.  This change is  
            consistent with changes enacted last year for concession  
            contracts that will help streamline the process while ensuring  
            continued legislative oversight.

          The author has indicated her intent to work with the  
            Administration and other interested parties on further  
            refinements to this bill as it moves through the legislative  
            process.  The committee may wish to reserve the right to  
            rehear this bill if it is substantively amended after being  
            approved by this committee.  
            
          2)Background:  The Legislature in 2011, in order to give the DPR  
            additional tools to assist in avoiding park closures, passed  
            legislation authorizing the DPR to enter into operating  
            agreements with qualified nonprofit organizations to operate a  
            state park unit.  At that time, because this was new  
            authority, a sunset clause and limitations on the number of  
            authorized operating agreements were included.  Since that  
            time, the DPR has entered into a number of successful  
            operating agreements which have enabled parks to stay open  
            that otherwise would have been subject to closure.  Examples  
            include Jack London State Historic Park, Sugar Loaf State  
            Park, and Austin Creek State Recreation Area in Sonoma County,  
            China Camp State Park in Marin County, and the Bale Grist Mill  
            State Historic Park in Napa County.  These agreements have  








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            taken different forms - some are for a portion of a state park  
            unit, some are for an entire unit, and others are donor  
            agreements, where the DPR retains management of the park with  
            the management paid for by non-state contributions.       



          The Legislature in 2012, following the 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 additional 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.  The report includes recommendations in  
            several focus areas, including budgeting, organizational  
            structure, technological capacity, partnerships, park access  
            and relevancy, natural and cultural resources, and development  
            of a diversified funding base.



            The Resources Agency and the DPR appointed a Transformation  
            Team that is working on implementing many of the Parks Forward  
            Commission's recommendations.



            One of the key recommendations of the Parks Forward Commission  
            was that a new nonprofit public benefit organization be  
            created to provide operational, financial, and strategic  
            support to the DPR, and to other organizations that manage or  
            operate parks and other protected lands in California, with  
            state parks as its first priority.  The Commission recommended  
            that the nonprofit entity collaborate with the DPR to expand  
            visitation by younger and more diverse audiences, improve and  
            expand educational and interpretive programs, promote healthy  








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            lifestyles, improve protection and restoration of natural and  
            cultural resources, and engage communities and partners.  The  
            primary focus of the support entity would be to complement and  
            amplify the work of the DPR by bringing new resources,  
            expertise, and flexibility to assist the DPR in accomplishing  
            its mission.

            As envisioned by the Parks Forward Commission, this new  
            nonprofit partner would be designed to complement, and not  
            overlap with the roles of other existing park partners,  
            including, but not limited to, the California State Parks  
            Foundation, a nonprofit park support organization which has  
            been in existence advocating for state parks since 1969.  The  
            Commission indicated that the purpose of the new support  
            entity would be to bring new expertise and resources, and to  
            take on projects and programs not currently advanced by other  
            organizations.  In addition, while the new entity's main  
            priority would be to serve state parks, the Commission also  
            envisioned it as potentially providing support to other local,  
            regional and national parks throughout California.  The intent  
            of the new partnership would be to build upon and add value to  
            the network of existing park support organizations.   
            Recognizing that support at the local level will continue to  
            be a key driver for parks' success, the Commission recommended  
            that where a local partner exists, the new park support  
            organization work to support its efforts, and where a local  
            partner does not exist, the support entity would step in to  
            help.

            At the national level, Congress has authorized natural  
            resource agencies to enter into similar partnership agreements  
            with nonprofit organizations to provide support services to  
            federal agencies.  Examples include the National Park  
            Foundation, which was created to provide support to the  
            National Park Service, the National Forest Foundation, which  
            was created to provide support to the United States Forest  
            Service, and the National Fish and Wildlife Foundation, which  
            provides support for the United States Fish and Wildlife  
            Service.








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          3)Prior and Related Legislation:  AB 42 (Huffman), Chapter 450,  
            Statues of 2011, authorized the 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.

          SB 204 (Pavley), Chapter 573, Statutes of 2015, among other  
            things, deleted the January 1, 2019, repeal date on the law  
            authorizing the DPR to enter into operating agreements with  
            qualified nonprofit organizations for operation of a state  
            park unit, thereby extending the operation of that section  
            indefinitely.  SB 204 also deleted a provision that previously  
            limited operating agreements for the entirety of a unit to  
            those that would prevent closure of a park unit. 

          AB 549 (Levine), Chapter 559, Statutes of 2015, among other  
            things, expanded the authority of the DPR to enter into  
            agreements to accept donations of funds, services or  
            improvements to state park units.  AB 549 also streamlined the  
            process for approval of concession contracts while ensuring  
            legislative oversight, by allowing the DPR to solicit bids and  
            enter into a concession agreement after providing the JLBC,  
            and appropriate fiscal and policy committees of the  
            Legislature, with 30 days prior written notice and opportunity  
            for review.  
            AB 2549 (Committee on Water, Parks and Wildlife) calls on the  
            DPR to provide recommendations on ways to improve the general  
            plan process for state parks.  It also requires the DPR to  
            provide quarterly accountings to donors of expenditures of  
            donated funds.  AB 2549 is currently pending in the Senate.








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          4)Proposed Amendments:  The following amendments are recommended  
            for clarity, and to help focus the new entity's mission in  
            order to optimize the chances for success:



          Amend Section 521 (a) to read:  

          521 (a) The department may enter into a strategic partnership  
            with a park support organization to  facilitate implementation  
            of reforms recommended by the Parks Forward Commission and  
             develop and secure expertise, services, resources, and  
            projects that are not readily available to the State Park  
            System, for all the following purposes:
          (1)?.. 
          (5)  To establish and improve,  and aid in the completion of  
            projects that establish or improve,  visitor amenities and  
            facilities;

          Amend Section 523 (a) and (b) to read:
            523. (a) If the department forms a strategic partnership with  
            a park support organization pursuant to this article, the  
            department shall  annually  collaborate with the park support  
            organization to develop a 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.   For the first three years of the agreement, the  
            park support organization and the department shall prioritize  
            a limited subset of focus areas and projects from the broader  
            list of purposes specified in Section 521(a) and consistent  
            with Section 521(b)(2).    









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          5)Support Arguments:  This bill helps implement several  
            recommendations of the Parks Forward Commission.  The author  
            notes this bill authorizes the DPR to enter into a strategic  
            partnership with a qualified nonprofit organization to provide  
                                                                                        services and support to the DPR for the benefit of the state  
            park system.  Among other things, this bill makes changes in  
            state law that are necessary to ensure the DPR can work  
            effectively and efficiently with a new state park support  
            organization.


          6)Opposition Arguments:  None received


          REGISTERED SUPPORT / OPPOSITION:




          Support


          The Trust for Public Lands




          Opposition


          None on file




          Analysis Prepared by:Diane Colborn / W., P., & W. / (916)  
          319-2096









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