BILL ANALYSIS Ó SB 1111 Page 1 SENATE THIRD READING SB 1111 (Pavley) As Amended August 17, 2016 Majority vote SENATE VOTE: 36-0 ------------------------------------------------------------------ |Committee |Votes|Ayes |Noes | | | | | | | | | | | | | | | | |----------------+-----+----------------------+--------------------| |Water |15-0 |Levine, Gallagher, | | | | |Bigelow, Dodd, | | | | |Eggman, Cristina | | | | |Garcia, Eduardo | | | | |Garcia, Gomez, | | | | |Harper, Lopez, | | | | |Mathis, Nazarian, | | | | |Olsen, Salas, | | | | |Williams | | | | | | | |----------------+-----+----------------------+--------------------| |Appropriations |15-0 |Gonzalez, Bigelow, | | | | |Bloom, Bonilla, | | | | |Bonta, Chang, Eggman, | | | | |Eduardo Garcia, | | | | |Jones, Obernolte, | | | | |Quirk, Santiago, | | SB 1111 Page 2 | | |Weber, Wood, McCarty | | | | | | | | | | | | ------------------------------------------------------------------ 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. Authorizes the DPR to enter into a statewide agreement with a qualified nonprofit park support organization. Specifically, this bill: 1)Deletes the limitation on the number of state park units for which 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 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 statewide agreement with a nonprofit park support organization to facilitate implementation of reforms recommended by the Parks Forward Commission, and to develop and secure expertise, services, resources, and projects that are not readily available to the state park system, for the following purposes: SB 1111 Page 3 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 and programs that facilitate park access and visitation, and enhance educational opportunities; d) To promote the health and wellbeing of the state's residents; e) To establish or improve, and aid in projects that establish or improve, state park visitor amenities and facilities; f) To recruit more diverse staffing and improve capacity for state park programs; and g) To advance protection and stewardship of natural, cultural, and historic resources. 4)Requires the park support organization, if the DPR enters into an agreement with the entity, to do all of the following in consultation with the DPR: SB 1111 Page 4 a) Communicate and coordinate with park agencies, partners, friends, and volunteers to ensure that activities undertaken pursuant to the agreement complement, and do not supplant, other ongoing partnerships, programs, and projects in support of the state park system; b) Engage with 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 and the park support organization to collaborate in developing an annual list of strategic initiatives and projects that are statewide priorities, and that the park support organization will undertake in partnership with the DPR. Requires the agreement to focus on a limited subset of focus areas and projects for the first three years, as specified. Requires any projects on the priority list to be consistent with specified policies regarding conservation and protection of the natural, historic, scenic, cultural, ecological, and wildlife resources and values of the state park system. 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 SB 1111 Page 5 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, staff-sharing agreements, leases, and rights of entry onto state park property. 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, developing or implementing strategic initiatives and projects on the priority list. Provides that any agreement to transfer funds shall be under the control of the DPR, and shall not be subject to advertising or competitive bidding requirements. Further clarifies that any construction or maintenance work undertaken by or on behalf of the park support organization on property owned by the state pursuant to this bill constitutes a public work for purposes of specified provisions of the Labor Code. SB 1111 Page 6 13)Requires 60 days review and approval of any strategic partnership agreement, or any substantial amendments to the agreement, by the Director of Finance. 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). Requires the DPR to provide sufficient documentation to enable the JLBC to evaluate fully the proposed agreement and estimated costs and revenues. Provides that leases or agreements that, in addition to other criteria, will not exceed annual gross revenues of $1 million generated on the property are exempt from this requirement. 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 policy and fiscal committees of the Legislature and the JLBC for review. SB 1111 Page 7 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)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 Assembly Appropriations Committee, increased annual costs of approximately $300,000 (General Fund) for the DPR to comply with the provisions of this bill. COMMENTS: This bill eliminates the existing cap on the number of state park units that can be subject to a nonprofit operating SB 1111 Page 8 agreement. It also authorizes the DPR to enter into a statewide agreement 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. 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. 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 SB 1111 Page 9 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 Ridge 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 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 SB 1111 Page 10 interpretive programs, promote healthy 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 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. 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 park 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. In another provision, this bill changes the terms of when SB 1111 Page 11 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 to help streamline the process while ensuring continued legislative oversight. Analysis Prepared by: Diane Colborn / W., P., & W. / (916) 319-2096 FN: 0004290