BILL ANALYSIS Ó
SB 1111
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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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