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