Bill Text: CA SB1111 | 2015-2016 | Regular Session | Amended

NOTE: There are more recent revisions of this legislation. Read Latest Draft

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Bill Title: State parks: operating agreements.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Passed) 2016-09-23 - Chaptered by Secretary of State. Chapter 540, Statutes of 2016. [SB1111 Detail]

Download: California-2015-SB1111-Amended.html

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BILL NUMBER: SB 1111	AMENDED
	BILL TEXT

	AMENDED IN ASSEMBLY  AUGUST 17, 2016
	AMENDED IN ASSEMBLY  JUNE 29, 2016
	AMENDED IN ASSEMBLY  JUNE 23, 2016

INTRODUCED BY   Senator Pavley

                        FEBRUARY 17, 2016

   An act to amend Sections 5003.17, 5080.40, and 5080.42 of, and to
add Article 1.5 (commencing with Section 520) to Chapter 1 of
Division 1 of, the Public Resources Code, relating to state parks.


	LEGISLATIVE COUNSEL'S DIGEST


   SB 1111, as amended, Pavley. State parks: operating agreements.
   Existing law vests control of the state park system with the
Department of Parks and Recreation and authorizes the department to
enter into an operating agreement with a qualified nonprofit
organization for the development, improvement, restoration, care,
maintenance, administration, or operation of a unit or units, or
portion of a unit, of the state park system, as provided. Existing
law provides that the department may  only  enter
into an operating agreement for the entirety of a park unit for no
more than 20 park units.
   This bill would delete that provision. The bill would authorize
the department to enter into a  strategic partnership
  statewide agreement  with a park support
organization, as defined, 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 specified purposes relating to
the funding, maintenance, visitation, use, facilities, and staffing
of state parks, as provided. The bill would require the department to
take specified actions relating to the development and
implementation of such  a strategic partnership 
 an agreement  and would authorize the Director of Parks and
Recreation, or the director's designee, to serve as an ex officio,
nonvoting member of the park support organization's board of
directors. The bill would require the  department 
 department, if it enters into an agreement with a park support
organization,  to collaborate with the park support organization
to develop an annual list of strategic initiatives and projects that
are  statewide  priorities for the state park 
system.   system and the park support organization.
 The bill would authorize the department to receive donations of
projects, services, and funds to be used for the support of the
state park  system. The bill would specify that the Director
of Finance and the Attorney General shall have 60 days to review and
approve or disapprove any strategic partnership  
system, subject to the review and approval of the  agreement or
substantial amendment of such an  agreement.  
agreement by the Director of Finance. 
   Existing law authorizes the department to lease, for any use, all
or any portion of any parcel of real property acquired for state park
system purposes, if the director finds that the use would be
compatible with the use of the real property as a unit or part of a
unit and with the sound management and conservation of resources
within the unit, but prohibits the department from entering into a
lease that extends beyond 10 years unless certain conditions for the
review and approval of a proposed lease as part of the annual budget
process are met.  Existing law imposes similar review and
approval requirements of operating leases or agreements that are
expected to generate over $500,000 in annual gross revenues. 
   This bill would revise certain of those conditions for the review
and approval of a proposed lease  or operating lease or agreement
 by  appropriate policy and fiscal Committees of the
Legislature, including  the Joint Legislative Budget
Committee, as specified.  The bill would make those conditions
applicable only to operating leases or agreements that are expected
to generate over $1,000,000 in annual gross revenues. 
   Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: no.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

  SECTION 1.  The Legislature finds and declares all of the
following:
   (a) Changes to existing law are necessary to facilitate
implementation of reforms that have been recommended by the Parks
Forward Commission to ensure vibrant and sustainable parks for all
Californians and for present and future generations.
   (b) The Department of Parks and Recreation needs to establish a
new strategic partnership with a nonprofit park support organization
that would complement and support the work of the department by
bringing new resources, expertise, and flexibility to assist the
department in accomplishing its mission.
  SEC. 2.  Article 1.5 (commencing with Section 520) is added to
Chapter 1 of Division 1 of the Public Resources Code, to read:

      Article 1.5.  Park Support Organization


   520.  For purposes of this article, the following terms shall have
the following meanings:
   (a) "Park support organization" means a nonprofit organization
that meets all of the following requirements:
   (1) Is exempt from taxation pursuant to Section 501(c)(3) of the
Internal Revenue Code.
   (2) Is established for the principal  purpose 
 purposes  of increasing park access and visitation in ways
that serve all Californians and visitors to the state, 
promote   promoting  healthy lifestyles and
community engagement, and  support   supporting
 the protection and stewardship of California's natural,
cultural, and historical lands, sites, and resources.
   (3) Complies with the Supervision of Trustees and Fundraisers for
Charitable Purposes Act (Article 7 (commencing with Section 12580) of
Chapter 6 of Part 2 of Division 3 of Title 2 of the Government
Code).
   (b) "Priority list" means the annual list of strategic initiatives
and projects developed by the department and the park support
organization pursuant to Section 523.
   521.  (a) The department may enter into a  strategic
partnership   statewide agreement  with a park
support organization to facilitate the 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 all of the following
purposes:
   (1) 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, where appropriate.
   (2) To support marketing and communications activities that
promote the programs, amenities, and resources of the state park
system, the department, and its partners.
   (3) To support projects  and programs  that facilitate
park access and  visitation,   visitation and
enhance educational opportunities,  particularly among younger
and more diverse audiences.
   (4) To promote the  human  health and well-being
of the state's residents.
   (5) To establish or improve, and aid in the completion of projects
that establish or improve, state park visitor amenities and
facilities.
   (6) To recruit more diverse staffing and improve capacity for
state park programs.
   (7) To advance the protection and stewardship of natural,
cultural, and historic lands, sites, and resources.
   (b) If the department enters into  a strategic partnership
  an agreement  with a park support organization,
the  department   park support organization, in
consultation with the department,  shall do all of the
following: 
   (1) Collaborate with the park support organization, on an ongoing
basis, to identify, develop, and implement strategic initiatives and
projects that are priorities for the state park system. 

   (2) 
    (1)  Communicate and coordinate with  other
 park agencies, partners, friends, and volunteers to ensure
that activities undertaken pursuant to the  strategic
partnership   agreement  complement, and do not
supplant, ongoing partnerships, programs, and projects in support of
the state park system. 
   (3) 
    (2)  Engage with  the park support organization
and other  public agencies and organizations that manage,
operate, and support other parks and protected lands in the state.
   522.  The director, or the director's designee, may serve as an ex
officio, nonvoting member of the park support organization's board
of directors in order to provide for effective communication and
coordination of efforts between the department and the park support
organization.
   523.  (a) If the department  forms a strategic partnership
  enters into an agreement  with a park support
organization pursuant to this article, the department  and the
park support organization  shall collaborate  with the
park support organization  to develop an annual list of
strategic initiatives and projects that are  statewide 
priorities for the state park system  and for the park support
organization  and that the park support organization will
undertake in partnership with the department.
   (b) (1) Any initiative or project included on the priority list
shall be consistent with the purposes specified in subdivision (a) of
Section 521.
   (2) For the first three years of the agreement entered into
pursuant to subdivision (a) of Section 524, the park support
organization and the department shall prioritize a limited subset of
focus areas and projects from the list of purposes specified in
subdivision (a) of Section 521, consistent with paragraph (2) of
subdivision (b) of Section 521. 
   (c) The department shall ensure that the priority list is prepared
in sufficient time to inform proposals for potential allocations of
funding in the annual Budget Act.  
   (c) Any initiative or project included on the priority list shall
be consistent with Sections 5001.2 and 5019.53 regarding protection
of the natural, scenic, cultural, and ecological values of the state
park system. 
   (d) The department shall post a copy of the priority list on its
Internet Web site, and shall provide copies of the list to the
chairpersons of the Senate  Committee on  Budget and Fiscal
 Review Committee,   Review,  the Assembly
Committee on Budget, the Senate Committee on Natural Resources and
Water, and the Assembly Committee on Water, Parks, and Wildlife.
   524.  (a) In order to  establish and facilitate a
strategic partnership as   advance the purposes 
described in subdivision (a) of Section 521,  the department
shall enter into  an agreement  with  
between the department and  the park support organization
 that,   pursuant to Section 521 shall,  at
a minimum,  shall  include and specify all of the
following:
   (1) Clear goals and objectives.
   (2) Any commitments of oversight, staffing, and coordination that
are needed to accomplish the goals and objectives.
   (3) The process for developing the priority list pursuant to
Section 523.
   (b) (1) The department may develop and enter into supplementary
agreements with the park support organization for the purposes of
securing any expertise, capacity, or financial resources that may be
needed to identify, plan, develop, or implement strategic initiatives
and projects on the priority list. Any such agreement may include,
but not be limited to, grants, contracts, memoranda of understanding,
staff-sharing agreements, leases, and rights of entry onto state
park property.
   (2) Notwithstanding Section 5003.17, the department may lease to
the park support organization, for a minimum rental of one dollar
($1.00) per year, real property that is owned by the state and
included in any unit of the state park system, if the lease agreement
requires the park support organization to construct, or provide for
the construction of, a structure or improvement on the leased
property and specifies that title to the structure or improvement
shall vest in the state at the expiration of the lease term. The
agreement may provide for the means or method by which title to the
structure or improvement shall vest in the state before the
expiration of that term. 
   (3) Notwithstanding Part 2 (commencing with Section 10100) of
Division 2 of the Public Contract Code, any agreements entered into
by the department pursuant to this subdivision shall be under the
control of the department and shall not be subject to any advertising
or competitive bidding requirements applicable to public works or
other public projects. 
   (c) The director may receive donations of projects, services, and
funds from the park support organization as authorized by Sections
5005, 5009.1, 5009.2, and 5009.3.
   (d) Subject to the availability of funds appropriated for that
purpose and pursuant to an agreement established under subdivision
(b), the department may provide funds to the park support
organization for purposes of identifying, planning, developing, or
implementing strategic initiatives and projects on the priority list.

   (1) Notwithstanding Part 2 (commencing with Section 10100) of
Division 2 of the Public Contract Code, any agreement to transfer
funds established pursuant to this subdivision shall be under the
control of the department and shall not be subject to any advertising
or competitive bidding requirements.  
   (2) Any construction, alteration, demolition, installation,
repair, or maintenance work undertaken by or on behalf of a park
support organization on property owned by the state pursuant to this
section shall constitute a public work for purposes of Chapter 1
(commencing with Section 1720) of Part 7 of Division 2 of the Labor
Code. 
   (e) The Director of Finance  and the Attorney General
 shall have 60 days to review and approve or disapprove any
 strategic partnership  agreement or any substantial
amendment to such  an  agreement, proposed under
subdivision (a). Upon approval of the agreement, or substantial
amendment, the director may accept donations and enter into
agreements as authorized under subdivisions (b) and (c).
   525.  Nothing in this article shall be interpreted as a limitation
on the ability of the park support organization to apply for,
receive, or administer grants, loans, or other funds from public
entities other than the  department.  
department, if the park support organization consults with the
department. Moreover, nothing in this article shall be interpreted as
a limitation on the ability of   the department to apply
for, receive, or administer grants, loans, or other funds for park
purposes from other entities. 
  SEC. 3.  Section 5003.17 of the Public Resources Code is amended to
read:
   5003.17.  (a) The department may lease, for any use, all or any
portion of any parcel of real property acquired for state park system
purposes, if the director finds that the use would be compatible
with the use of the real property as a unit or part of a unit and
with the sound management and conservation of resources within the
unit.
   (b) Rent shall be based on the fair market value of the property
when used for the purpose for which it is leased. All rent shall be
deposited pursuant to Section 5010.
   (c) The lease term shall not exceed 10 years. All leases are
subject to the approval of the Department of General Services.
   (d) No lease shall be entered into that extends beyond the 10-year
period unless both of the following conditions are met:
   (1) At least 30 days' prior written notice of the proposed lease,
including a copy of the proposed lease, has been provided by the
director to  the appropriate policy and fiscal committees of
the Legislature, including  the Joint Legislative Budget
Committee.
   (2) The director has included with the proposed lease sufficient
documentation to enable the Joint Legislative Budget 
Committee, and any other appropriate legislative policy and fiscal
committees,   Committee  to determine whether the
lease conforms to the requirements of this article and to evaluate
fully all terms upon which the lease is proposed to be let, including
the amount of the rent and other revenues that may be generated
under the lease.
  SEC. 4.  Section 5080.40 of the Public Resources Code is amended to
read:
   5080.40.  (a) No operating lease or agreement shall be entered
into, or amended, pursuant to this article unless at least 30 days'
written notice and a copy of the proposed operating lease or
agreement, or amendment, has been provided by the director to
 the appropriate policy and fiscal committees of the
Legislature and to  the Joint Legislative Budget Committee.
   (b) The director shall include with the proposed lease or
agreement or amendment sufficient documentation to enable the Joint
Legislative Budget  Committee, and any other appropriate
policy or fiscal committees of the Legislature,  
Committee  to evaluate fully the estimated operating costs and
revenues and all terms upon which the lease or agreement or amendment
is proposed to be entered into. Specifically, the documentation
shall identify both of the following:
   (1) Any anticipated costs to the state for operation or
development under the lease or agreement or amendment and the
anticipated state share of total operation and development costs.
   (2) The anticipated annual revenues, net of operation costs, for
the unit and the state's share of these revenues.
   (c) Leases or agreements shall be exempt from subdivisions (a) and
(b) when all of the following conditions exist:
   (1) The lease or agreement involves operation of only a portion of
a unit of the state park system.
   (2) The term of the lease or agreement is for a period of 20 years
or less.
   (3) The lease's or agreement's impact to the unit, including
concessions revenue, will not exceed  five hundred thousand
dollars ($500,000)   one million dollars ($1,000,000)
 in annual gross revenue generated on the property.
   (4) The lease or agreement involves no significant change in state
operational funding or staffing levels, and does not include present
or future state expenditures for development of the unit.
   (d) Amendments to existing leases or agreements shall be exempt
from subdivisions (a) and (b) when all of the following conditions
exist:
   (1) The amendment involves operation of only a portion of a unit
of the state park system.
   (2) The amendment's impact to the unit will not exceed 
five hundred thousand dollars ($500,000)   one million
dollars ($1,000,000)  in annual gross revenue generated on the
property.
   (3) The amendment involves no significant change in state
operational funding or staffing levels, and does not include present
or future state expenditures for development of the unit.
  SEC. 5.  Section 5080.42 of the Public Resources Code is amended to
read:
   5080.42.  (a) Notwithstanding any other provision of this article,
the department may enter into an operating agreement with a
qualified nonprofit organization for the development, improvement,
restoration, care, maintenance, administration, or operation of a
unit or units, or portion of a unit, of the state park system, as
agreed to by the director. The prohibition on park closures, pursuant
to subdivision (a) of Section 541.5, does not limit the department's
authority to enter into an operating agreement pursuant to this
section, as provided in subdivision (e) of Section 541.5. An
operating agreement with a qualified nonprofit organization shall
include, but shall not be limited to, the following conditions:
   (1) The district superintendent for the department shall provide
liaison with the department, the nonprofit organization, and the
public.
   (2) The nonprofit organization shall annually submit a written
report to the department regarding its operating activities during
the prior year and shall make copies of the report available to the
public upon request. The report shall be available on the Internet
Web sites of both the department and the nonprofit organization. The
report shall include a full accounting of all revenues and
expenditures for each unit of the state park system that the
nonprofit organization operates pursuant to an operating agreement.
   (3) (A) Except as provided in subparagraph (B), all revenues that
the qualified nonprofit organization receives from a unit shall be
expended only for the care, maintenance, operation, administration,
improvement, or development of the unit. The qualified nonprofit
organization may additionally contribute in-kind services and funds
raised from outside entities for the care, maintenance, operation,
administration, improvement, or development of the unit.
   (B) If the qualified nonprofit organization determines that the
revenues it has received from a unit are in excess of the revenues
that are needed for the care, maintenance, operation, administration,
improvement, or development of that unit, and that these funds are
not already specified for or committed to specific purposes pursuant
to an existing agreement or contract restricting the use of those
funds, the qualified nonprofit organization may dedicate those excess
revenues to another state park unit for that unit's care,
maintenance, operation, administration, improvement, or development.
   (4) General Fund moneys shall not be provided to a nonprofit
organization to subsidize the operation or maintenance of a park
unit. This paragraph applies to state parks, the full operation of
which are turned over to a nonprofit organization, but does not apply
to or preclude the department from entering into agreements with
nonprofit organizations to operate a portion of a state park unit, or
from entering into comanagement agreements with nonprofit
organizations that involve the sharing of operational and financial
responsibilities for the park unit and that have the effect of
reducing state costs. This paragraph does not apply to park entrance
fees, concession revenues, or any other revenues generated within a
park operated by a nonprofit organization pursuant to this section.
   (b) An operating agreement entered into pursuant to subdivision
(a) shall honor the existing term of a current concession contract
for the state park unit subject to the operating agreement.
   (c) An operating agreement entered into pursuant to subdivision
(a) shall specify the duties that the nonprofit organization shall be
responsible for carrying out relative to management and protection
of natural, historical, and cultural resources, and shall identify
those management duties that shall continue to be conducted by the
department, so that all core operations of the park are delineated.
Scientific, architectural, and engineering functions that require
special expertise or professional training shall only be conducted by
or under the supervision of qualified persons with applicable
expertise or training and subject to oversight by the department.
   (d) This section does not supersede the requirements of Section
5019.53 regarding the protection of natural, scenic, cultural, and
ecological values.
   (e) The nonprofit organization and the district superintendent for
the department shall, following submittal of the annual report
pursuant to subdivision (a), hold a joint public meeting for
discussion of the report.
   (f) If the department intends to enter into an operating agreement
for the development, improvement, restoration, care, maintenance,
administration, or operation of a unit or units, or a portion of a
unit, the department shall notify the Member of the Legislature in
whose district the unit is located, the Chair of the Senate Committee
on Natural Resources and Water, the Chair of the Assembly Committee
on Water, Parks, and Wildlife, and the chairs of the Assembly and
Senate budget committees of that intention. The notification shall
include estimated operating costs and revenues and core duties and
responsibilities that are likely to be assigned to the nonprofit
organization and the department.
   (g) For purposes of this section, a qualified nonprofit
organization is an organization that is all of the following:
   (1) An organization that is exempt from taxation pursuant to
Section 501(c)(3) of the Internal Revenue Code.
   (2) An organization that has as its principal purpose and activity
to provide visitor services in state parks, facilitate public access
to park resources, improve park facilities, provide interpretive and
educational services, or provide direct protection or stewardship of
natural, cultural, or historical lands, or resources.
   (3) An organization that is in compliance with the Supervision of
Trustees and Fundraisers for Charitable Purposes Act (Article 7
(commencing with Section 12580) of Chapter 6 of Part 2 of Division 3
of Title 2 of the Government Code).
   (h) (1) Notwithstanding Section 10231.5 of the Government Code,
the department shall provide a report to the Legislature, on a
biennial basis, of the status of operating agreements it has entered
into pursuant to this section. The report shall include a list of
units of the state park system with operating agreements, discussion
of the management and operations of each unit subject to an operating
agreement, an accounting of the revenues and expenditures incurred
under each operating agreement, and an assessment of the benefit to
the state from operating agreements entered into pursuant to this
section.
   (2) A report submitted pursuant to paragraph (1) shall be
submitted in compliance with Section 9795 of the Government Code.