BILL ANALYSIS                                                                                                                                                                                                    �





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          |                                                                 |
          |         SENATE COMMITTEE ON NATURAL RESOURCES AND WATER         |
          |                   Senator Fran Pavley, Chair                    |
          |                    2011-2012 Regular Session                    |
          |                                                                 |
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          BILL NO: SB 974                    HEARING DATE: April 24, 2012  

          AUTHOR: Evans                      URGENCY: No  
          VERSION: April 11, 2012            CONSULTANT: Katharine Moore  
          DUAL REFERRAL: No                  FISCAL: Yes  
          SUBJECT: State parks: proposed closures.  
          
          BACKGROUND AND EXISTING LAW
          The Department of Parks and Recreation (department) is required 
          to administer, protect and develop the state park system, as 
          well as ensure that the state parks provide recreation and 
          educational programs.  The department is also required to help 
          preserve the state's most valued natural and cultural resources, 
          and protect and preserve the state's biological diversity.  
          California's state park system includes 278 state parks located 
          throughout the state and visited by over 70 million visitors in 
          the last 5 years.

          Since FY 2006 - 07, General Fund support for the department has 
          decreased, although this has been at least partially offset by 
          bond sales to keep overall funding to the state park system 
          roughly stable.  The recent financial turmoil coupled with the 
          state's budget deficit led to the Governor's proposal last year 
          to cut $22 million in General Fund support for state parks from 
          FY 2012 - 13.  Half of the savings will come from service 
          reductions.  The other half of the on-going reduction will come 
          from closing 70 parks, which the department believes will result 
          in "negative effects on our mission and on local communities."  
          The statutory criteria used to evaluate state park closure 
          include the following (Public Resources Code (PRC) �5007):

                 Relative statewide significance,
                 Number of visitors,
                 Net savings from closure,
                 Physical feasibility of closure,
                 Potential for partnerships to support the park,
                 Operational efficiencies to be gained from closure,
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                 Significant and costly infrastructure deficiencies,
                 Recent infrastructure investments,
                 Necessary, but unfunded, capital investments, 
                 Deed restrictions and grant requirements, and
                 Extent of non-General Fund support

          The closures will occur by July 2012.  The 70 parks selected 
          represent about eight percent of system-wide attendance and six 
          percent of system-wind revenues with relatively little impact on 
          uniquely significant parks.

          The announcement of the closure list resulted in considerable 
          public outcry and various entities stepped forward to help keep 
          specific parks open.  The department has approximately 50 
          existing operating agreements with public agencies for the 
          partial or full operation, maintenance and/or care of state 
          parks.  There are two existing statutory agreements with 
          nonprofit organizations. The total number of agreements is 
          expected to increase given recent changes in state law (PRC 
          �5080.42).  As of the end of February 2012, 10 of the 70 
          designated state parks had reached agreements with a variety of 
          cities, community groups, and the National Park Service to 
          remain open for varying lengths of time.  (At least 12 state 
          parks have now reached agreement.)  The department held 5 public 
          meetings around the state in February and March 2012 to search 
          for community partners for parks designated for closure.  
          Discussions are underway exploring the potential to reach 
          operating agreements with partners to enable approximately 20 
          more parks to stay open.  The department also plans to explore 
          concessions at another 11 parks.  The department views 
          concessions as a "contingency option," should no other present 
          itself.

          There are numerous concerns related to the potential closure of 
          state parks, even for a limited period of time.  Approximately 
          40% of on-going park expenses are for maintenance which would 
          not be entirely reduced by park closure.  Further, vandalism is 
          a concern given the reduced presence of rangers once a park has 
          been closed.  Approximately $100,000 in infrastructure damage 
          occurred recently at the Providence Mountain State Recreation 
          Area by thieves stripping copper due to its high salvage price.

          PROPOSED LAW
          This bill would:
                 State legislative intent to facilitate reopening state 
               parks temporarily closed due to the state's budget deficit
                 Require that the department by July 1, 2013 review the 
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               basis for the parks closed by July 1, 2012 or proposed to 
               be closed in the future. The review includes:
                  o         previously established closure criteria,
                  o         the economic impacts of closure on local 
                    communities,
                  o         what, if any, California Environmental Quality 
                    Act process is required for closure,
                  o         closure's impact on the future costs to the 
                    department for deferred maintenance, liability and 
                    security,
                  o         whether the closure is consistent with federal 
                    agreements,
                  o         a public process including meetings held in 
                    both southern and northern California to provide an 
                    opportunity for public input on existing closures, and
                  o         consideration of other options to reduce 
                    department costs other than closing parks.
                 Require that the department issue a report on any park 
               that may be closed in the future that includes the criteria 
               described above.  The report shall be issued on July 1, 
               2013 and annually thereafter.
                 Require that the department issue a plan for the 
               reopening of any closed park or its transfer to a public 
               agency that could reopen the closed park.  The plan should 
               include appropriate information, as specified, to support 
               the basis for reopening the park, including, for example, 
               recommendations for staffing, expected park usage, and 
               maintenance work that would need to be performed.  The 
               first reopening plan is due on July 1, 2013 and annually 
               thereafter.
                 Require that existing operating agreements reached with 
               others to keep a state park open will be honored.
                 Require the department, so long as a park remains 
               closed, to annually provide to the Legislature a master 
               park reopening plan in order to prioritize and facilitate 
               the reopening of closed state parks.  Prioritization shall 
               include, for example, factors such as community and donor 
               support, benefit to the local economy, and the potential to 
               reduce illegal activity and resource degradation.  The 
               first report is due January 1, 2014 and annually thereafter 
               as long as a park remains closed due to state budget 
               restrictions.

          ARGUMENTS IN SUPPORT
          According to the author, "state parks are crucial to 
          California's environmental legacy and they are of vital 
          historic, cultural, and economic significance to the state. If 
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          closures are considered, there must be a formal, transparent and 
          inclusive process to confirm that these closures are well 
          thought out and have the least negative impacts on the 
          environment, economy and community, as possible. Nor should 
          parks be closed indefinitely. There must be a process in place 
          for reopening parks when the means become available, and the 
          Legislature should be made aware of the status of the closing 
          and reopening of parks on an annual basis."

          The Sierra Club California adds that "our state parks are 
          important natural resources that we need to protect and maintain 
          accessibility �to] for Californians. Local communities, 
          businesses, and families rely on state parks for visitors, 
          income and inexpensive, but enjoyable, vacation options. We need 
          to do all we can to keep the parks open and provide a safe and 
          healthy outdoor space for visitors."

          COMMENTS 
           A transparent and accountable process for park closures  .  The 
          statutory criteria to be considered by the department in 
          evaluating state parks for closure have been known since March 
          24, 2011 when the budget bill, AB 95, was chaptered.  In May 
          2011 the list of 70 state parks to be closed was released.  Only 
          recently, however, has the department released information on 
          the particular reasons why each of the 70 state parks was slated 
          for closure.  While acknowledging that the selection of parks 
          for closure is a difficult, qualitative and iterative process, 
          and that the department had not had to perform this task before, 
          the lack of available information and public opportunity for 
          comment did not serve to build support for the process.  This 
          bill seeks to provide transparency to the process through the 
          production and dissemination of park closure and reopening 
          plans.  It also provides for formal public input (Amendment 1 
          clarifies public input and provides for the report on park 
          closure).
           
          Does considering the local economic impacts of park closures 
          change the park closure list?   It is unclear if the 
          modifications proposed by this bill to the existing statutory 
          criteria would result in a different list of parks for closure.  
          Many of the existing criteria focus on savings to the state.  
          Arguably, however, there is no factor in the existing criteria 
          that would necessarily provide a good surrogate for local 
          economic impacts.

           Reduce the number of state parks  ?  The department has repeatedly 
          transferred real property from the state park system to the 
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          control of local governments and other public agencies.  In many 
          cases statutory restrictions require the recipient to maintain 
          public access and the property's use as a park (see, for 
          example, PRC �5002.6 transferring beach lands to the City of Los 
          Angeles).  The deferred maintenance balance of $1.3 billion for 
          the state park system - as well as the needs for park closures 
          themselves - suggests that insufficient state funds are 
          consistently available for the system.  Significant budget 
          shortfalls, however, currently exist at all levels of 
          government. It is not clear that other appropriate public 
          agencies or governments would have the available resources to 
          reopen a closed state park.  It is appropriate to include the 
          transfer of a closed state park unit outside of the state park 
          system to another public entity as one park reopening option 
          (Amendment 2).

           Does closing selected state parks violate federal law  ?  In 1964, 
          the federal Land and Water Conservation Fund was created which 
          provided for revenue from offshore oil drilling to be used to 
          purchase land for national parks, forests and wildlife refuges.  
          The fund also issues grants, for example, to states to purchase 
          park lands, as well as to help pay for park infrastructure.  
          California has received $287.3 million from the fund since 1965. 
           A condition of the funding is that public access be maintained. 
           Recent newspaper reports suggest that California's move to 
          temporarily close some parks that received funds from this 
          program is illegal.  The department is working with the 
          Department of Interior to ensure public access is maintained, 
          while a park is officially closed.  According to the department, 
          this complies with the conditions of the Land and Water 
          Conservation Fund.
           
          This bill is a work-in-progress  .  While the overarching goals of 
          the bill are clear, the specific language is still under 
          development.  Several minor clarifying changes are needed, 
          including specifying the reporting requirements to the 
          Legislature and not requiring a report on park closures when no 
          parks are either closed or designated for closure (Amendment 3).

           Related legislation  .
          AB 95 (Budget Committee, c. 2, Statutes of 2011) provided 
          criteria for determining which state parks should be closed. 

          AB 42 (Huffman, c. 450, Statutes of 2011) authorizes the 
          department to enter into operating agreements with qualified 
          nonprofits to operate state parks.

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          SB 1078 (Evans, 2012) would provide incentives and a framework 
          to promote revenue generation in order to provide financial 
          support through a variety of mechanisms for state parks.  
          Currently before the Senate Natural Resources and Water 
          Committee.

          AB 1589 (Huffman, 2012) would limit the number of state parks 
          closed and provide a suite of means of revenue generation to 
          provide financial support for state parks.  Currently before the 
          Assembly Revenue and Taxation Committee. 

          SUGGESTED AMENDMENTS 

               AMENDMENT 1  
               Page 3, line 20: following "meetings" add "or submitted in 
               writing within 30 days of the meetings"
               Page 3, lines 22 - 24: delete lines, inclusive
               Page 3, line 25: delete "(8)" and replace with "(7)"
               Page 3, insert between lines 37 and 38: "The department 
               shall prepare a report that includes, for each park 
               proposed for closure, information supporting the basis for 
               that recommendation pursuant to the criteria referenced in 
               subdivision (b) and any other relevant factors considered. 
               The closure report shall be posted on the department's 
               Internet website and there shall be a public comment period 
               of 30 days after the report's release. The department shall 
               respond in writing to all public comments within 60 days of 
               the close of the public comment period. The response shall 
               also be posted on the department's Internet website."







               AMENDMENT 2 
               Page 3, line 40: delete "or a transfer"
               Page 4, delete line 1
               Page 4, line 2: delete "and operate the park."
               Page 4, line 9: add "potential operating partners" after 
               "resource restoration,"
               Page 4, between lines 10 and 11: add "(D) a consideration 
               of alternative strategies that may facilitate reopening the 
               unit including the transfer of the unit to another public 
               entity."

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               AMENDMENT 3 
               Page 2, line 18: delete "on the basis of a decision matrix 
               developed"
               Page 3, line 7: following "including," add "but not limited 
               to,"
               Page 4, line 12: add "if needed," following "subdivision,"
               Page 4, line 26: after "thereafter" add "so long as any 
               unit of the state park system remains closed or is 
               designated for closure due to budgetary restrictions,"
               Page 4, line 38: following "had" insert "prior to closure 
               or may have in the future"
               Page 4, line 39: delete "prior to closure"
               Page 5, delete lines 12 - 14, inclusive
               Page 5, after line 18: add "(d) the report shall conform to 
               the requirements of section 9795 of the Government Code."
               
          SUPPORT
          Audubon California
          Mendocino County Board of Supervisors
          Sierra Club California
          Trust for Public Land
          California State Parks Foundation
          California Hotel & Lodging Association

          OPPOSITION
          None Received





















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