BILL ANALYSIS �
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THIRD READING
Bill No: SB 1078
Author: Evans (D)
Amended: 5/29/12
Vote: 21
SENATE NATURAL RESOURCES AND WATER COMM. : 8-0, 4/24/12
AYES: Pavley, La Malfa, Cannella, Evans, Kehoe, Padilla,
Simitian, Wolk
NO VOTE RECORDED: Fuller
SENATE APPROPRIATIONS COMMITTEE : 7-0, 5/24/12
AYES: Kehoe, Walters, Alquist, Dutton, Lieu, Price,
Steinberg
SUBJECT : State parks: state park revenue generation
and insurance risk pool
SOURCE : Author
DIGEST : This bill authorizes the Department of Parks and
Recreation (DPR), until January 1, 2020, to assist a park
district or unit of the state park system in establishing
specified numbers of innovation working groups for the
purpose of developing innovative revenue proposals for the
district or the park unit, as prescribed. This bill
requires DPR, in addition to evaluating revenue-generating
ideas submitted by innovation working groups, to consider
specified factors relating to ways to generate revenues for
state parks. This bill requires each innovation team
working group to perform specific duties and to make
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recommendations to DPR on innovative revenue proposals, or
ideas about how to make those districts or units more
self-sufficient, increase visitation, and generate new
revenues.
ANALYSIS :
Existing law:
1. Vests the DPR with control over the state park system.
2. Creates the State Parks and Recreation Fund (Fund) into
which are deposited revenues received by the DPR, which
are available for expenditure for state park purposes
upon appropriation by the Legislature.
This bill contains various findings about the importance of
DPR becoming more self-sufficient and proposes to title
this law as the "California State Parks Sustainability
Through Innovation Act."
Specifically, this bill:
1. Allows DPR to assist a park district or unit of the
state park system in establishing no more than 10
innovation working groups during the 2013 calendar year
for the purpose of developing innovative revenue
proposals for the district or park unit. No more than
an additional 10 innovation working groups may be
established pursuant to this section, per year in the
2014 calendar year. On an after January 1, 2015,
additional working groups may be formed at the
discretion of the Director, as specified.
2. Requires DPR, in addition to evaluating
revenue-generating ideas submitted by innovation working
groups, to consider possible revenue generation projects
including: regional park passes, cooperative agreements
with county park departments to establish a regional
park pass, a voluntary income tax checkoff, improvements
in concessionaire contracts that will improve revenues,
arrangements with transportation agencies to allow the
use of toll passes such as FasTrak to pay for park
admissions, the use of credit cards at entrance kiosks,
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the sale of entry fees at retail stores, and increasing
the use of historic buildings at parks for the purpose
of revenue generating activities under specified
conditions.
3. Allows a district superintendent or park manger to
recommend to the Director the dissolution of an
innovation working group for a specific unit of the
state park system or park district.
4. Requires each innovation team working group to make
recommendations to DPR on innovative revenue proposals,
or ideas about how to make those districts or units more
self-sufficient, increase visitation, and generate new
revenues.
5. Allows DPR to appoint an innovation working group at a
district or unit level of the state park system for the
purposes of developing innovative revenue proposals for
the district and the unit, and generating new ideas
about how to make those districts or units more
self-sufficient, increase visitation, and develop new
revenue proposals.
6. Allows the district superintendent or park manger to
establish a community advisory board of not more than
six members and six alternates consisting of residents
living near the park district or near the unit of the
state park system for the purposes of providing
community input in the development of the business plan.
7. Requires all pending and recently approved innovative
revenue proposals to be posted on DPR's Internet Web
site.
8. Requires the innovation working group of a particular
district or unit of the state park system to do all of
the following:
A. Develop innovative revenue proposals outlining
ways that the unit or district can become more
self-sustainable, increase visitation, and generate
new revenues.
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B. Consult with the district superintendent or park
manager on the implementation of an innovative
revenue proposal or projects generating new revenue
for the district or unit of the state park system.
C. Make recommendations to the district
superintendent or park manager on the use of monies.
9. Sunsets on January 1, 2020.
Background
For the past several years an effort has been underway to
understand and react to the fiscal crisis at the DPR. DPR
operates a world-renowned network of 278 parks that serve
70 million visitors each year. Last year, the budget bill
contained criteria for DPR to follow in closing state
parks, and the DPR is going through a very difficult
process in arranging to close some parks and at the same
time, to work with local nonprofits and communities in a
last-ditch effort to keep open a number of parks slated for
closure. The good news is that some, but not all, of the
parks slated for closure will remain open thanks to these
new operating agreements. The bad news is that it seems
inevitable in this budget climate that some parks will
close. The exact number of those closures may not be known
until closer to the beginning of the new fiscal year, but
it is definitely fewer than the 70 that were once
identified for closure.
A key component that has been identified within DPR, by the
Legislature, and by others concerned with the future of
California's state parks is the need to establish a
long-term, sustainable funding structure that is not as
dependent on the decreasing General Fund commitment that
has occurred over the past several years. DPR and many
others concerned with the future of state parks are engaged
in an urgent effort to enhance the ability of DPR to
generate more revenues for itself in ways that are
consistent with the mission of the widely varying state
parks that it administers.
Revenue generation efforts are being considered in the
ongoing budget process by the two relevant Budget
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Subcommittees in both houses, by DPR itself, and by
individual legislators. SB 1078 (Evans, 2012) and AB 1589
(Huffman, 2012) are two key measures. Both are focused on
identifying new revenue enhancement opportunities for state
parks.
The 2011-12 Budget for DPR contained an $11 million general
fund reduction. The proposed budget for 2012-13 contains
an equal reduction.
As noted by the Legislative Analyst's Office, the proposed
budget proposes $329 million in total expenditures for
state parks which is a decrease of $93 million, or 22%,
below the estimated level of current-year spending for
state parks. This reduction includes reduced bond
expenditures and General Fund support. The $329 million
that is proposed would be comprised of $80 million in
visitor fees, $112 million from the General Fund, and $137
million from special funds.
FISCAL EFFECT : Appropriation: No Fiscal Com.: Yes
Local: No
The author's office has made substantial amendments to cut
down on fiscal concerns raised by the Senate Appropriations
Committee. The amendments delete the requirement for the
creation of the Innovation Team within DPR. Instead, DPR
may use their own resources as they see fit to evaluate
revenue generation programs. Innovation Working Groups can
be developed at the local park or district level. These
working groups are optional and may be formed at the
discretion of the Superintendent or park manager, and no
more than 10 can be formed in the first year. Working
groups are also not required to develop or implement
business plans, since this may be beyond their professional
expertise. Instead, the working groups develop and
implement (through the Superintendent) revenue generation
projects. The amendments also specify the technical
assistance for the insurance pool does not include legal
services, to ensure that DPR does not need to hire an
outside consultant. The provisions of the bill will sunset
in 2020.
SUPPORT : (Verified 5/24/12)
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Audubon California
Sierra Club California
Mendocino County Board of Supervisors
ARGUMENTS IN SUPPORT : Sierra Club California supports
all of the provisions in this bill because, in its view,
state parks are important natural resources that California
needs to protect and to maintain access for all
Californians. It considers the provisions in this bill as
steps that will keep parks open for all visitors.
CTW:mw 5/29/12 Senate Floor Analyses
SUPPORT/OPPOSITION: SEE ABOVE
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