BILL ANALYSIS                                                                                                                                                                                                    Ó




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          |SENATE RULES COMMITTEE            |                       SB 1111|
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                                UNFINISHED BUSINESS 


          Bill No:  SB 1111
          Author:   Pavley (D) 
          Amended:  8/19/16  
          Vote:     21 

           SENATE NATURAL RES. & WATER COMMITTEE:  9-0, 3/29/16
           AYES:  Pavley, Stone, Allen, Hertzberg, Hueso, Jackson,  
            Monning, Vidak, Wolk

           SENATE APPROPRIATIONS COMMITTEE:  Senate Rule 28.8

           SENATE FLOOR:  36-0, 5/9/16
           AYES:  Allen, Anderson, Berryhill, Block, Cannella, De León,  
            Fuller, Galgiani, Glazer, Hall, Hancock, Hernandez, Hertzberg,  
            Hill, Hueso, Huff, Jackson, Lara, Leno, Leyva, Liu, McGuire,  
            Mendoza, Mitchell, Monning, Moorlach, Morrell, Nguyen,  
            Nielsen, Pan, Pavley, Roth, Stone, Vidak, Wieckowski, Wolk
           NO VOTE RECORDED:  Bates, Beall, Gaines, Runner

           ASSEMBLY FLOOR:  55-24, 8/24/16 - See last page for vote

           SUBJECT:   State parks:  operating agreements


          SOURCE:    Author
          
          DIGEST:  This bill authorizes the Department of Parks and  
          Recreation (DPR) to enter into a statewide agreement with a  
          qualified nonprofit park support organization, and makes other  
          changes relative to state park operating agreements.   


          Assembly Amendments add protections for existing state jobs at  
          DPR, add provision that certain work done by the new nonprofit  
          and paid for with public funds constitutes a public works  








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          project, and restore the provision in existing law that no more  
          than 20 operating agreements may be entered into by and between  
          DPR and nonprofits. 


          ANALYSIS:   


          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 Joint Legislative Budget Committee (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.








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           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.   


          This bill: 


           1) 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.


           2) 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:


              a)    To develop and engage new sources of public and  
                private funding for the state park system, including  








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                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 support 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.


           3) 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:


              a)    Communicate and coordinate with park agencies,  
                partners, friends, and volunteers to ensure that  
                activities undertaken pursuant to the agreement  
                complement, support, facilitate, and amplify other ongoing  
                partnerships, programs, and projects in support of the  
                state park system; and








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              b)    Engage with public agencies and organizations that  
                manage, operate, and support other parks and protected  
                lands.


           4) Authorizes the director of the DPR and the director of the  
             Department of Finance, or their designees to serve as ex  
             officio, nonvoting members of the park support organization's  
             board of directors.


           5) 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.  


           6) Requires the DPR to post the priority list on its Web site  
             and provide copies to legislative committees, as specified.


           7) 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.


           8) 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,  








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             staff-sharing agreements, leases, and rights of entry onto  
             state park property.  


           9) Specifically authorizes the DPR to lease to the park support  
             organization for a minimum rental of $1 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.


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


           11)Provides that agreements entered into by the DPR with the  
             park support organization shall not be subject to advertising  
             or competitive bidding requirements.  Clarifies that any  
             construction, alteration, demolition, installation, or repair  
             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.


           12)Clarifies that nothing in this bill shall be interpreted as  
             a limitation on the ability of the park support organization  
             to apply for funds from other public entities, and requires  
             the park support entity to consult with the DPR if the DPR  
             may also be applying for those funds.


           13)Modifies existing law authorizing the DPR to enter into  
             operating agreements with qualified nonprofit organizations  
             for the operation of state parks to:


              a)    Require that any jobs maintained under a memorandum of  
                understanding between the state and represented bargaining  
                units shall not be eliminated pursuant to an operating  








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                agreement and shall continue to be state employment.


              b)    Add a sunset clause providing that the authority to  
                enter into operating agreements with nonprofit  
                organizations shall remain in effect only until January 1,  
                2025, and as of that date is repealed unless a later  
                enacted statute deletes or extends that date.


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


           15)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 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.  




          FISCAL EFFECT:   Appropriation:   No          Fiscal  
          Com.:YesLocal:   No


          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.


          SUPPORT:   (Verified8/17/16)












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          Trust for Public Land




          OPPOSITION:   (Verified  8/17/16)


          None received


          ARGUMENTS IN SUPPORT:  According to the author, 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 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.  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.








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           ASSEMBLY FLOOR:  55-24, 8/24/16
           AYES: Alejo, Arambula, Atkins, Bloom, Bonilla, Bonta, Brown,  
            Burke, Calderon, Campos, Chau, Chiu, Chu, Cooley, Cooper,  
            Dababneh, Dodd, Eggman, Frazier, Cristina Garcia, Eduardo  
            Garcia, Gatto, Gipson, Gomez, Gonzalez, Gordon, Gray, Roger  
            Hernández, Holden, Irwin, Jones-Sawyer, Lackey, Levine,  
            Linder, Lopez, Low, McCarty, Medina, Mullin, Nazarian,  
            O'Donnell, Olsen, Quirk, Ridley-Thomas, Rodriguez, Salas,  
            Santiago, Mark Stone, Thurmond, Ting, Weber, Wilk, Williams,  
            Wood, Rendon
           NOES: Achadjian, Travis Allen, Baker, Bigelow, Brough, Chang,  
            Chávez, Dahle, Beth Gaines, Gallagher, Grove, Hadley, Harper,  
            Jones, Kim, Maienschein, Mathis, Mayes, Melendez, Obernolte,  
            Patterson, Steinorth, Wagner, Waldron
           NO VOTE RECORDED: Daly
           
          Prepared by: William Craven / N.R. & W. / (916) 651-4116
          8/25/16 17:54:16


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