BILL ANALYSIS Ó ----------------------------------------------------------------- |SENATE RULES COMMITTEE | SB 1111| |Office of Senate Floor Analyses | | |(916) 651-1520 Fax: (916) | | |327-4478 | | ----------------------------------------------------------------- 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 SB 1111 Page 2 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. SB 1111 Page 3 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 SB 1111 Page 4 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 SB 1111 Page 5 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, SB 1111 Page 6 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 SB 1111 Page 7 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) SB 1111 Page 8 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. SB 1111 Page 9 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 **** END ****