BILL ANALYSIS                                                                                                                                                                                                    Ó



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          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,      |                    |








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          |                |     |Weber, Wood, McCarty  |                    |
          |                |     |                      |                    |
          |                |     |                      |                    |
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          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:









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               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:










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               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  








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            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.










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          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.









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          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  








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          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  








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          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  








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          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  








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          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