BILL NUMBER: SB 2 AMENDED BILL TEXT AMENDED IN ASSEMBLY MARCH 12, 1998 AMENDED IN SENATE JANUARY 28, 1998 AMENDED IN SENATE JANUARY 26, 1998 AMENDED IN SENATE MAY 1, 1997 AMENDED IN SENATE APRIL 3, 1997 AMENDED IN SENATE MARCH 12, 1997 AMENDED IN SENATE MARCH 5, 1997 AMENDED IN SENATE FEBRUARY 7, 1997 INTRODUCED BY Senator Thompson (Principal coauthors: Assembly Members Brown and Cunneen) (Coauthors: Senators Alpert, Karnette, Kopp, Lee, McPherson, Rainey, Rosenthal, Sher, Solis, Vasconcellos, and Watson) (Coauthors: Assembly Members Alquist, Aroner, Baca, Battin, Bowen, Ducheny, Figueroa, Granlund, Havice, Keeley, Lempert, Mazzoni, Napolitano, Ortiz, Pacheco, Papan, Perata, Strom-Martin, and Wayne) DECEMBER 2, 1996 An act to add Chapter 1.692 (commencing with Section 5096.300) to Division 5 of the Public Resources Code, relating to financing a program for the acquisition, development, improvement, rehabilitation, restoration, enhancement, and protection of park, recreational, cultural, historical, fish and wildlife, lake, riparian, reservoir, and coastal resources , by providing the funds necessary therefor through the issuance and sale of bonds of the State of California and by providing for the handling and disposition of those funds . LEGISLATIVE COUNSEL'S DIGEST SB 2, as amended, M. Thompson. Parks and resources improvement : bond act . Under existing law, programs have been established pursuant to bond acts for, among other things, the development and enhancement of state and local parks and recreational facilities.This bill would address the critical need for park, recreation, and conservation areas.This bill would enact the Watershed, Wildlife, and Parks Improvement Bond Act of 1998 which, if adopted, would authorize, for the purpose of financing a program for the acquisition, development, improvement, rehabilitation, restoration, enhancement, and protection of park, recreational, cultural, historical, fish and wildlife, lake, riparian, reservoir, river, and coastal resources, as specified, the issuance, pursuant to the State General Obligation Bond Law, of bonds in the amount of $849,500,000. The bill would provide for the submission of the bond act to the voters at the direct primary election to be held November 3, 1998, in accordance with specified existing election law. Vote:majority2/3 . Appropriation: no. Fiscal committee:noyes . State-mandated local program: no. THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS: SECTION 1. Chapter 1.692 (commencing with Section 5096.300) is added to Division 5 of the Public Resources Code, to read:CHAPTER 1.692. PARKS AND RESOURCES IMPROVEMENTCHAPTER 1.692. WATERSHED, WILDLIFE, AND PARKS IMPROVEMENT BOND ACT OF 1998 Article 1. General Provisions 5096.300. This chapter shall be known, and may be cited, as the Watershed, Wildlife, and Parks Improvement Bond Act of 1998. 5096.301. The Legislature urgently recommends and respectfully requests that the people of California approve the Watershed, Wildlife, and Parks Improvement Bond Act of 1998, as set forth in this chapter. This chapter, among other things, addresses the critical need for park, recreation, and conservation area and facility funding by authorizing the sale of general obligation bonds that must be used judiciously for the purposes of this chapter. 5096.302. The Legislature hereby finds and declares all of the following: (a) Californians are very proud of the excellent system of local, regional, and state parks that they have established, providing places for families to enjoy quality time together and enjoy our state's rich outdoor experiences. (b) Parks and scenic areas are essential to maintaining strong communities, improving the quality of life for California's residents, protecting our natural and cultural resources, and attracting visitors who contribute to the state's vibrant tourism economy. (c) For more than 60 years, generations of Californians have taken the responsibility to invest in our proud system of state, regional, and local parks by establishing excellent recreational and scenic facilities. (d) In recent years, budgetary and economic concerns have prevented Californians from protecting these critical investments and providing for our state's growing needs, resulting in disrepair and overcrowding of many park facilities. (e) By taking responsibility today to protect our investments, we can repair and improve our parks and recreation and conservation areas and facilities to make sure that families have safe places to enjoy and that tourists will continue to enrich our economy by visiting those areas and facilities. (f) As homeowners and business persons well understand, we can save money in the long run by making the necessary investments today to repair park and recreational facilities, thereby avoiding more expensive repairs than will be necessary if those facilities continue to degrade. (g) Our park and recreational and conservation areas and facilities are also an investment in establishing a healthier future for our youth. Not only can we help our local communities establish safer places for our children to play, but we can help instill a sense of responsibility and improve job skills by putting our youth to work improving our park and recreational and conservation areas and facilities. (h) There is a great need to make reasonable and cost-effective investments in our park and recreation and conservation areas, with emphasis on the following: (1) Making our parks safer. (2) Preparing and restoring worn-out and damaged park and open-space facilities. (3) Providing Californians with greater access to enjoy park and recreational and conservation facilities by building and improving such facilities as restrooms, campgrounds, and trails. (4) Protecting scenic, conservation, historical, and archaeological resources, and water quality. (5) Taking the responsibility now to meet California's growing needs so that current and future generations have adequate park and recreational and conservation facilities to enjoy. (6) Promoting job opportunities that provide our youth with healthy alternatives to drugs, gangs, and other forms of delinquency. 5096.303. The Legislature further finds and declares all of the following: (a) California's economy is significantly based on its natural and cultural resources. Protection of the environment is critical for California's tourism, recreation, and commercial fishing industries. (b) Modest but strategic investment in natural resource enhancement and restoration can help ensure that all of those industries will continue to contribute to the state's resurgent, vibrant economy. This investment should protect the natural, cultural, and scenic values of the state's most popular tourist areas and areas where tourism may flourish in the next decades, and develop public facilities, concessions, and partnerships to promote local economic development in conjunction with tourism and other resource-dependent industries. (c) For over 60 years, the people of California have funded park and recreation improvements and natural and cultural resource conservation projects through the sale of general obligation bonds. Saving resources and building facilities is an obligation which must be fulfilled now to ensure that future generations can appreciate the natural beauty of this most unique and diverse state. Playgrounds and parks, clean air and water, historic, cultural, and archaeological preserves, beaches, forest, and conservation areas funded by bond acts last for many generations. 5096.304. The Legislature hereby finds and declares that it is the policy of this state to provide needed local financial assistance for the development, expansion, restoration, and increased utilization of neighborhood parks and recreational facilities. 5096.305. The Legislature further finds and declares that it is the responsibility of this state to do all of the following: (a) Provide and assist in the development of essential state and local parks and recreational facilities for the use of all citizens of California and visitors to the state, and to provide for the protection and preservation of essential park and recreational resources and historical resources. (b) Utilize the issuance of bonds under this chapter to develop, expand, restore, and increase the utilization of existing state and local park and recreational facilities and other public resources. (c) Recognize that recreation and tourism, with state and local public parks and natural lands and facilities serving as key infrastructure, are the foundation for a multibillion dollar industry in California. An investment in maintaining that infrastructure also enhances opportunities for new and continuous employment and economic growth throughout the state. Improving the development of, and access to, existing properties increases the recreational opportunities for the citizens of California. (d) Recognize the need to invest in and support infrastructure development designed to provide facilities for youth enrichment and the prevention of youth crime and patterns of delinquency. (e) Recognize that investing in the infrastructure of parks improves the quality of neighborhoods and, thus, benefits the quality of life for the residents of those neighborhoods. (f) Recognize the need to invest in and support the employment of qualified at-risk youth for the improvement and maintenance of state and local parks through the use of the California Conservation Corps and certified local community conservation corps. (g) Recognize that improving the development and restoration of, and access to, publicly owned properties increases the recreational opportunities for the citizens of California. 5096.306. (a) It is the intent of the Legislature to strongly encourage every state or local government agency receiving the bond funds allocated pursuant to this chapter for an activity to give full and proper consideration to the use of recycled and reusable products whenever possible with regard to carrying out that activity. (b) It is the further intent of the Legislature that no land shall be acquired for purposes of this chapter except from a willing seller of the land. 5096.307. Every proposed activity to be funded pursuant to this chapter shall be in compliance with the California Environmental Quality Act (Division 13 (commencing with Section 21000)). 5096.308. As used in this chapter, the following terms have the following meaning: (a) "Acquisition" means the acquisition from a willing seller of a fee interest or any other interest, including easements and development rights, in real property from a willing seller. (b) "Board" means the Secretary of the Resources Agency designated in accordance with subdivision (b) of Section 5096.362. (c) "Certified local community conservation corps programs" means programs operating pursuant to Section 14406. (d) "Commission" means the State Parks and Recreation Commission. (e) "Committee" means the Watershed, Wildlife, and Parks Improvement Program Finance Committee created pursuant to subdivision (a) of Section 5096.362. (f) "District" means any regional park district, regional park and open-space district, or regional open space district formed pursuant to Article 3 (commencing with Section 5500) of Chapter 3 and any recreation and park district formed pursuant to Chapter 4 (commencing with Section 5780). With respect to any community or unincorporated region that is not included within a district, and in which no city or county provides parks or recreational areas or facilities, "district" also means any other district that is authorized by statute to operate and manage parks or recreational areas or facilities, employs a full-time park and recreation director and offers year-round park and recreation services on lands and facilities owned by the district, and allocates a substantial portion of its annual operating budget to parks or recreation areas or facilities. (g) "Fund" means the Watershed, Wildlife, and Parks Improvement Bond Fund created pursuant to Section 5096.310. (h) "Historical resource" includes, but is not limited to, any building, structure, site area, place, artifact, or collection of artifacts that is historically or archaeologically significant in the cultural annals of California. (i) "Program" means the Watershed, Wildlife, and Parks Improvement Program established pursuant to this chapter. (j) "Secretary" means the Secretary of the Resources Agency. (k) (1) "Stewardship" means the development and implementation of projects for the protection, preservation, rehabilitation, restoration, and improvement of natural systems and outstanding features of the state park system and historical and cultural resources. Those efforts may not include activities that merely supplement normal park operations or that are usually funded from other sources. (2) (A) "Cultural resources stewardship" may include, but is not limited to, stabilization and protection of historical resources, including archaeological resources, in the state park system. Those resources may include sites, features, ruins, archaeological deposits, historical landscape resources, rock art features, and artifacts making up the physical legacy of California's past. (B) "Cultural resources stewardship" does not include the rehabilitation, restoration, reconstruction, interpretation, or mitigation of historical resources typically required as part of a development program. (3) "Natural resources stewardship" may include, but is not limited to, such objectives as the control of major erosion and geologic hazards, the restoration and improvement of critical plant and animal habitat, the control and elimination of exotic species encroachment, the stabilization of coastal dunes and bluffs, and the planning necessary to implement those objectives. (l) "Wildlife conservation partnership" means a cooperative acquisition, restoration, or management of wildlife habitat for which the Wildlife Conservation Board provides matching funds to leverage other public, private, or nonprofit resources to maximize the conservation benefits to wildlife and wildlife habitat. Article 2. Watershed, Wildlife, and Parks Improvement Program 5096.310. The proceeds of bonds issued and sold pursuant to this chapter shall be deposited in the Watershed, Wildlife, and Parks Improvement Bond Fund, which is hereby created. Unless otherwise specified and except as provided in subdivision (l), the money in the fund shall be available for appropriation by the Legislature, in the manner set forth in this chapter, only for parks and resources improvement and administrative costs allocable to the bond funded projects, in accordance with the following schedule: (a) The sum of one hundred fifty million dollars ($150,000,000) to the department for the following purposes: (1) To rehabilitate units of the state park system that will ensure that state park system lands and facilities will remain open and accessible for public use. (2) To develop facilities and trails at existing units of the state park system that will provide for optimal recreational and educational use, activities, improved access and safety, and the acquisition from a willing seller of inholdings and adjacent lands. Adjacent lands are lands contiguous to, or in the immediate vicinity of, existing state park system lands and that directly benefit an existing state park system unit. (3) For stewardship of the public investment in the preservation of the critical natural heritage and scenic features, and cultural heritage stewardship projects that will preserve vanishing remnants of California's landscape, and protect and promote a greater understanding of California's past, and the planning necessary to implement those efforts. (4) For facilities and improvements to enhance volunteer participation in the state park system. (5) To develop, improve, and expand interpretive facilities at units of the state park system, including educational exhibits and visitor orientation centers. (6) To rehabilitate and repair aging facilities at winter recreation facilities pursuant to the Sno-Park program, as provided for in Chapter 1.27 (commencing with Section 5091.01), that provide for improved public safety. (b) The sum of eight million dollars ($8,000,000) to the department to undertake stewardship projects, including cultural resources stewardship and natural resources stewardship projects, that will restore and protect the natural treasures of the state park system, preserve vanishing remnants of California's landscape, and protect and promote a greater understanding of California's past. (c) The sum of four million dollars ($4,000,000) to the department for facilities and improvements to enhance volunteer participation in the state park system. (d) The sum of twenty million dollars ($20,000,000) to the department for grants to local agencies administering units of the state park system under an operating agreement with the department, for the development, improvement, rehabilitation, restoration, enhancement, protection, and interpretation of lands and facilities of, and improved access to, those locally operated units. (e) The sum of ten million dollars ($10,000,000) to the California Heritage Fund, created pursuant to Section 5079.10, for competitive grants, in accordance with Section 5096.335. (f) The sum of one hundred eighty million dollars ($180,000,000) to the department for grants, in accordance with Sections 5096.332, 5096.333, and 5096.336, on the basis of population, for the acquisition, development, improvement, rehabilitation, restoration, enhancement, and interpretation of local park and recreational lands and facilities. (g) The sum of sixty-seven million five hundred thousand dollars ($67,500,000) to the department for grants to cities, counties, and districts for the acquisition, development, rehabilitation, and restoration of park and recreation areas and facilities pursuant to the Roberti-Z'berg-Harris Urban Open-Space and Recreational Program Act (Chapter 3.2 (commencing with Section 5620). (h) The sum of ten million dollars ($10,000,000) to the department for grants, in accordance with Section 5096.337, for the development, improvement, rehabilitation, restoration, and enhancement of public access to lakes, rivers, and reservoirs, and facilities related thereto, to provide recreational opportunities, and for purposes of Section 7048 of the Water Code. (i) The sum of ten million dollars ($10,000,000) to the department for grants, in accordance with Section 5096.337, for the development, improvement, rehabilitation, restoration, enhancement, and interpretation of nonmotorized trails for the purpose of increasing public access to, and enjoyment of, existing public areas for increased recreational opportunities. (j) The sum of two million five hundred thousand dollars ($2,500,000) to the California Conservation Corps to complete capital outlay and resource conservation projects and administrative costs allocable to the bond funded projects. (k) The sum of twenty-seven million five hundred thousand dollars ($27,500,000) to the department for the following purposes: (1) The sum of twenty million dollars ($20,000,000) for grants, in accordance with Sections 5096.339 and 5096.340, for urban recreational and cultural centers, including, but not limited to, zoos, museums, aquariums, and facilities for wildlife education. (2) The sum of seven million five hundred thousand dollars ($7,500,000) for regional youth soccer facilities operated by nonprofit organizations. (l) Notwithstanding Section 13340 of the Government Code, the sum of one hundred forty million dollars ($140,000,000) is hereby continuously appropriated to the Wildlife Conservation Board, without regard to fiscal years, in accordance with Section 5096.350. (m) The sum of fifty million dollars ($50,000,000) to the California Tahoe Conservancy, in accordance with Section 5096.351. (n) The sum of one hundred million dollars ($100,000,000) to the State Coastal Conservancy, in accordance with Section 5096.352. (o) The sum of thirty-five million dollars ($35,000,000) to the Santa Monica Mountains Conservancy, in accordance with Section 5096.353. (p) The sum of two million five hundred thousand dollars ($2,500,000) to the Coachella Valley Mountains Conservancy, in accordance with Section 5096.354. (q) The sum of five million dollars ($5,000,000) to the San Joaquin River Conservancy, in accordance with Section 5096.355. (r) The sum of two million five hundred thousand dollars ($2,500,000) to the California Conservation Corps for grants for the certified local community conservation corps program to complete capital outlay and resource conservation projects. (s) The sum of five million dollars ($5,000,000) to the Department of Conservation in accordance with Section 5096.356. (t) The sum of ten million dollars ($10,000,000) to the Department of Forestry and Fire Protection for urban forestry programs in accordance with Section 4799.12. The grants made pursuant to this subdivision shall be for costs associated with the purchase and planting of trees, and up to three years of care which ensures the long term viability of those trees. Not more than 5 percent of these funds may be used for related administrative costs. (u) The sum of ten million dollars ($10,000,000) to the Department of Fish and Game for the following purposes: (1) The sum of five million dollars ($5,000,000) for expenditure in accordance with subdivision (a) of Section 5096.357. (2) The sum of five million dollars ($5,000,000) for expenditure in accordance with subdivision (b) of Section 5096.357. Article 3. State Park System Program 5096.320. The Legislature hereby recognizes that public financial resources are inadequate to meet all capital outlay needs of the state park system and that the need for the acquisition, development, restoration, rehabilitation, improvement, and protection of state park system lands and facilities has increased to the point that their continued well-being and the realization of their full public benefit is jeopardized. 5096.321. (a) Any Member of the Legislature, the commission, or the secretary may nominate any state park system project for funding under this chapter, for study by the department. The commission shall nominate projects only after holding at least one public hearing to seek project proposals from individuals, citizen groups, the department, and other public agencies. The commission shall make those nominations by majority vote of its members. (b) The department shall study any state park system project nominated pursuant to subdivision (a). The department shall annually submit to the Legislature and to the secretary a report, consisting of a prioritized listing and comparative evaluation of those nominated projects, in accordance with the following schedule: (1) Not later than March 1, 1999, for state park system projects nominated prior to January 1, 1999. (2) Not later than November 1, 1999, for state park system projects nominated after January 1, 1999, but prior to June 30, 1999. (3) Not later than November 1, 2000, and not later than each November 1 thereafter, for state park system projects nominated during the 12 months ending June 30, 2000, and each June 30 thereafter. (c) Nominated state park system projects shall be subject to approval by the secretary and approved projects shall be forwarded by the secretary to the Director of Finance for inclusion in the Budget Bill. Article 4. Grant Program 5096.331. The Legislature hereby recognizes that public financial resources are inadequate to meet all of the funding needs of local public park and recreation providers and that there is an urgent need for safe, open, and accessible local park and recreational facilities and for the increased recreational opportunities that provide positive alternatives to social problems. Accordingly, it is declared to be the policy of this state that the funds allocated pursuant to Section 5096.310 to local agencies shall be appropriated primarily for projects that accomplish all of the following: (a) Rehabilitate facilities at existing local parks that will provide for more efficient management and reduced operational costs. (b) Develop facilities that promote positive alternatives for youth and that promote cooperation between local park and recreation service providers and youth-serving nonprofit organizations. (c) Promote family oriented recreation activities. (d) Provide for open, safe, and accessible local park lands and facilities. 5096.332. (a) Sixty percent of the total funds available for grants shall be allocated to cities and to districts other than a regional park district, regional park and open-space district, or regional open-space district. Each city's and district's allocation shall be in the same ratio as the city's or district's population is to the combined total of the state's population that is included in incorporated areas and unincorporated areas within the district, except that each city or district shall be entitled to a minimum allocation of twenty thousand dollars ($20,000). In any instance in which the boundary of a city overlaps the boundary of such a district, the population in the area of overlapping jurisdictions shall be attributed to each jurisdiction in proportion to the extent to which each operates and manages parks and recreational areas and facilities for that population. In any instance in which the boundary of a city overlaps the boundary of such a district, and in the area of overlap the city does not operate and manage parks and recreational areas and facilities, all grant funds shall be allocated to the district. (b) Each city and each district subject to subdivision (a) whose boundaries overlap shall develop a specific plan for allocating the grant funds in accordance with the formula specified in subdivision (a). If, by April 1, 1999, the plan has not been agreed to by the city and district and submitted to the department, the director shall determine the allocation of the grant funds among the affected jurisdictions. 5096.333. (a) Forty percent of the total funds available for grants shall be allocated to counties and regional park districts, regional park and open-space districts, or regional open-space districts formed pursuant to Article 3 (commencing with Section 5500) of Chapter 3. (b) Each county's allocation under subdivision (a) shall be in the same ratio as the county's population, except that each county shall be entitled to a minimum allocation of one hundred thousand dollars ($100,000). (c) In any county that embraces all or part of the territory of a regional park district, regional park and open-space district, or regional open-space district, whose board of directors is not the county board of supervisors, the amount allocated the county shall be apportioned between that district and the county in proportion to the population of the county that is included within the territory of the district and the population of the county that is outside the territory of the district. 5096.335. Funds authorized pursuant to subdivision (e) of Section 5096.310 shall be administered by the State Office of Historic Preservation and shall be available as grants, on a competitive basis, to cities, counties, districts, and nonprofit organizations for the acquisition, development, rehabilitation, restoration, and interpretation of historical resources. The amount of each grant shall not exceed one million dollars ($1,000,000). 5096.336. Funds authorized pursuant to subdivision (f) of Section 5096.310 shall be available for grants to cities, counties, and districts on the basis of their populations, as determined by the department in cooperation with the Department of Finance, on the basis of the most recent verifiable census data and other population data that the department may require to be furnished by the applicant city, county, or district. 5096.337. (a) Funds authorized pursuant to subdivisions (h) and (i) of Section 5096.310 shall be available as grants, on a competitive basis, to cities, counties, districts, and local agencies formed for park purposes pursuant to a joint powers agreement as defined in subdivision (b). (b) For purposes of this section, "district" means any local agency formed for park purposes pursuant to a joint powers agreement between two or more local entities. The director shall prepare and adopt criteria and procedures for evaluating those competitive grants for access to lakes, rivers, and reservoirs. 5096.339. Not less than 50 percent of the funds authorized in paragraph (1) of subdivision (k) of Section 5096.310 shall be available as grants administered by the department to cities, counties, and nonprofit organizations for the development, rehabilitation, or restoration of facilities accredited by the American Zoo and Aquarium Association (AZA) and operated by cities, counties, and nonprofit organizations, and to cities, counties, and nonprofit organizations for the development, rehabilitation, or restoration of zoos and aquariums operated by cities, counties, and nonprofit organizations, but not yet accredited by the AZA. This program shall be known, and may be cited, as the Dr. Paul Chaffee Zoological Program. Allocation in awarding grants pursuant to this section shall be in accordance with the following schedule: (a) Individual grants of up to one million dollars ($1,000,000), or an amount to be determined by dividing 95 percent of the total zoo and aquarium funds available pursuant to this section by the number of AZA accredited institutions at the time of enactment of this section, shall be made available to zoos and aquariums that are AZA accredited. (b) Not less than 10 percent or two million dollars ($2,000,000), whichever is greater, of the funds available pursuant to subdivision (a) shall be reserved for institutions with annual operating budgets of less than one million dollars ($1,000,000). (c) Not more than 5 percent of the total funds available pursuant to this section, shall be made available as grants to zoos and aquariums that have initiated the AZA accreditation process but are not yet accredited at the time of the enactment of this section. Grants awarded under this subdivision shall be dedicated to projects which will enhance the institution's ability to meet standards of AZA accreditation. 5096.340. (a) Not less than 25 percent of the funds authorized in paragraph (1) of subdivision (k) of Section 5096.310 shall be available as grants on a competitive basis to cities, counties, and nonprofit organizations for the development or rehabilitation of real property consisting of urban recreational and cultural centers, museums, and facilities for wildlife education. (b) To be eligible for funding, a project shall initially be nominated by a Member of the Legislature for study by the department. The department shall study each project so nominated and, prior to the April 1 preceding the fiscal year in which funds are proposed to be appropriated, shall submit to the Legislature a prioritized listing and comparative evaluation of all projects nominated prior to the preceding July 1. (c) In establishing priorities of projects, the department shall consider any favorable project characteristics, including, but not limited to, all of the following: (1) The project will interpret one or more important California historical, cultural, economic, or resource themes or an important historical, cultural, economic, technological, or resource theme in a major region of California. Higher priority shall be assigned to projects whose themes are not interpreted in any existing museum or have demonstrable deficiencies in their presentation in an existing museum. (2) The project is proposed to be operated on lands that are already in public ownership or on lands that will be acquired and used for the project in conjunction with adjoining public lands. (3) Projects that are closely related geographically to the resources, activity, structure, place, or collection of objects to be interpreted, and are close to population centers and access routes. (4) Projects that are in, or close to, population centers or are adjacent to, or readily served by, a state highway or other mode of public transportation. (5) Projects for which there are commitments, or the serious likelihood of commitments, of funds or the donation of land or other property suitable for the project. (d) The department shall annually forward a list of the highest priority projects to the Department of Finance for inclusion in the Budget Bill. (e) An application for a grant for a cooperative museum project shall be submitted jointly by the city, county, or other public agency, an institute of higher learning, or a nonprofit organization that cooperatively is operating, or will operate, the project. 5096.341. (a) Individual applications for grant funds pursuant to subdivisions (f), (g), (h), (i), and (k) of Section 5096.310 shall be submitted to the department for approval as to their conformity with the requirements of this chapter. The application shall be accompanied by certification from the planning agency of the applicant that the project for which the grant is requested is consistent with the park and recreation element of the applicable city or county general plan or the district park and recreation plan, as the case may be, and will satisfy a high priority need. To utilize available grant funds as effectively as possible, overlapping or adjoining jurisdictions are encouraged to combine projects and submit a joint application. (b) The minimum grant amount that an applicant may request is twenty thousand dollars ($20,000). Any applicant may allocate all or a portion of its per capita share for a regional or state project. (c) The director shall annually forward a statement of the total amount to be appropriated in each fiscal year for projects approved for grants pursuant to subdivisions (f), (g), (h), (i), and (k) of Section 5096.310 to the Director of Finance for inclusion in the Budget Bill. A list of eligible jurisdictions and the amount of grant funds to be allocated to each shall also be made available by the department. (d) (1) Funds appropriated for grants pursuant to subdivisions (f), (g), (h), (i), and (k) of Section 5096.310 shall be encumbered by the recipient within three years from the date that the appropriation became effective. Regardless of the date of encumbrance of the granted funds, the recipient is expected to complete all funded projects within eight years of the effective date of the appropriation. (2) Commencing with the Budget Bill for the 2007-08 fiscal year, any grant funds appropriated pursuant to subdivisions (f), (g), (h), (i), and (k) of Section 5096.310 that have not been expended by the grantee shall revert to the fund and be available for appropriation by the Legislature for one or more of the categories specified in Section 5096.310 that the Legislature determines to be of the highest priority statewide. 5096.342. (a) Grant funds appropriated pursuant to subdivisions (f), (g), (h), (i), and (k) of Section 5096.310 may be expended by the grantee only for projects on lands owned by, or subject to a lease or other interest held by, the grantee. (b) If a grant applicant does not have fee title to the lands, the applicant shall demonstrate to the satisfaction of the department that the proposed project will provide public benefits that are commensurate with the type and duration of the interest in land that is held by the applicant. 5096.343. (a) Except as provided in subdivision (c), no grant funds authorized pursuant to subdivisions (f), (g), (h), (i), and (k) of Section 5096.310 may be disbursed unless the applicant has agreed, in writing, to both of the following: (1) To maintain and operate the property funded pursuant to this chapter for a period that is commensurate with the type of project and the proportion of state funds and local matching funds or property allocated to the capital costs of the project. With the approval of the department, the grantee, or the grantees' successor in interest in the property, may transfer the responsibility to maintain and operate the property in accordance with this section. (2) To use the property only for the purposes for which the grant was made and to make no other use or sale or other disposition of the property, except as authorized by specific act of the Legislature. (b) The agreements specified in subdivision (a) shall not prevent the transfer of the property from the applicant to a public agency, if the successor public agency assumes the obligations imposed by those agreements. (c) If the use of the property is changed to a use that is not permitted by the category from which the grant funds were appropriated, or if the property is sold or otherwise disposed of, an amount equal to (1) the amount of the grant, (2) the fair market value of the real property, or (3) the proceeds from the sale or other disposition, whichever is greater, shall be used by the grantee for a purpose authorized by that category, pursuant to agreement with the department as specified in subdivision (a), or shall be reimbursed to the fund and be available for appropriation by the Legislature only for a purpose authorized by that category. If the property sold or otherwise disposed of is less than the entire interest in the property funded with the grant, an amount equal to either the proceeds from the sale or other disposition of the interest or the fair market value of the interest sold or otherwise disposed of, whichever is greater, shall be used by the grantee for a purpose authorized by the category from which the funds were appropriated, pursuant to agreement with the department as specified in subdivision (a), or shall be reimbursed to the fund and be available for appropriation by the Legislature only for a use authorized by that category. 5096.344. All grants, gifts, devises, or bequests to the state, that are conditioned upon being used for park, conservation, recreational, agricultural, or other such purposes, may be accepted and received on behalf of the state by the appropriate departmental director, with the approval of the Director of Finance, and those grants, gifts, devises, or bequests shall be available, upon appropriation by the Legislature, for expenditure for the purposes specified in Section 5096.310. 5096.345. Except for funds continuously appropriated by this chapter, all appropriations of funds pursuant to Section 5096.310 for purposes of the program shall be included in a section of the Budget Bill for the 1999-2000 fiscal year, and each succeeding fiscal year, for consideration by the Legislature, and shall bear the caption "Watershed, Wildlife, and Parks Improvement Program." The section shall contain separate items for each project, each class of project, or each element of the program for which an appropriation is made. Article 5. Wildlife Program 5096.350. (a) Funds appropriated pursuant to subdivision (l) of Section 5096.310 shall be available for expenditure by the Wildlife Conservation Board for the acquisition, development, rehabilitation, restoration, enhancement, and protection of real property benefiting fish and wildlife, and for grants and related state administrative costs pursuant to the Wildlife Conservation Law of 1947 (Chapter 4 (commencing with Section 1300) of Division 2 of the Fish and Game Code), for the following purposes: (1) Ten million dollars ($10,000,000) for the acquisition, restoration, or enhancement of wetland habitat, as follows: (A) Five million dollars ($5,000,000) for the acquisition, preservation, restoration, enhancement, and establishment, or any combination thereof, of habitat for waterfowl or other wetlands associated wildlife, as provided for in the Central Valley Habitat Joint Venture Component of the North American Waterfowl Management Plan and the Inland Wetlands Conservation Program. Preference shall be given to projects involving the acquisition of fee interests and perpetual conservation easements; habitat development projects on lands which will be managed primarily as waterfowl habitat in perpetuity; waterfowl habitat development projects on agricultural lands; the reduction of fishery impacts resulting from supply diversions; or programs to establish permanent buffer areas, including, but not limited to, agricultural lands that are necessary to preserve the acreage and habitat values of existing wetlands. In addition, up to 2 percent of this funding may be expended for the development and implementation of wetland education programs in the Central Valley. (B) Five million dollars ($5,000,000) for the acquisition, development, restoration, enhancement, and protection of wetlands and adjacent lands, or any combination thereof, located outside the Sacramento-San Joaquin Valley. (2) Ten million dollars ($10,000,000) for the enhancement, development, acquisition from a willing seller, or restoration of riparian habitat and watershed conservation programs. (3) Forty million dollars ($40,000,000) for the restoration, acquisition from a willing seller, or enhancement of habitat for threatened and endangered species and significant natural areas and natural communities. Preference for funding shall be given to plans that have achieved a local match. (4) Five million dollars ($5,000,000) for the acquisition from a willing seller, enhancement, or restoration of forest lands, including, but not limited to, ancient redwoods and oak woodlands. (5) Seventy-five million dollars ($75,000,000) for wildlife conservation partnerships that provides for the acquisition, restoration, enhancement, or protection of habitat for threatened, endangered, or fully protected species, the preservation of natural communities or unique habitat types, or the preservation or restoration of wildlife corridors. Preference shall be given to projects that promote the recovery of threatened and endangered species or that protect habitat linkages and wildlife corridors to prevent habitat fragmentation. The board shall require matching contributions in funding, real property, or other resources from other public agencies, private parties, or nonprofit organizations, at a level designed to obtain the maximum conservation benefits to wildlife and wildlife habitat. (b) "Enhancement," for purposes of this section, includes the construction or development of facilities to provide public access to lands or water open to the public for wildlife-oriented public use. (c) Notwithstanding subdivision (l) of Section 5096.310, no allocation for acquisition of the real property pursuant to a natural community conservation plan prepared pursuant to Chapter 10 (commencing with Section 2800) of Division 3 of the Fish and Game Code shall be made unless the acquisition of the real property is specifically authorized by statute. Article 6. Lake Tahoe Program 5096.351. (a) The Legislature has recognized the need to protect and restore the fragile environment at Lake Tahoe; and the Tahoe Regional Planning Agency has prepared an Environmental Improvement Program that outlines a capital outlay approach to help achieve environmental thresholds in the Lake Tahoe Basin, which allocates funding responsibilities over the first 10 years of the program in the amounts of approximately two hundred seventy-four million dollars ($274,000,000) to the State of California, two hundred ninety-seven million dollars ($297,000,000) to the federal government, eighty-two million dollars ($82,000,000) to the State of Nevada, one hundred one million dollars ($101,000,000) to local governments, and one hundred fifty-three million dollars ($153,000,000) to the private sector. (b) Funds allocated pursuant to subdivision (m) of Section 5096.310 shall be available for expenditure for the development, restoration, acquisition from a willing seller, and enhancement of real property, by the California Tahoe Conservancy within the Lake Tahoe region pursuant to Title 7.42 (commencing with Section 66905) of the Government Code for the following purposes: (1) Protecting the natural environment through preservation of environmentally sensitive lands, soil erosion control, restoration or enhancement of watershed lands, restoration or enhancement of streams and other natural areas. (2) Providing public access and public recreation opportunities. (3) Enhancing and restoring wildlife areas. (c) The provision of these funds is to meet applicable state responsibilities pursuant to the Tahoe Regional Planning Agency's Environmental Improvement Program. (d) The allocation of these funds has been made in the expectation that the federal government, the State of Nevada, local jurisdictions, and the private sector will fulfill their respective obligations pursuant to the Environmental Improvement Program. The secretary shall report annually to the Legislature on the progress of the development and implementation of the Environmental Improvement Program, and the provision of these funds may be restricted in the event that the parties are found to be making inadequate progress or are not making good faith efforts towards fulfilling their respective obligations. Article 7. Coastal Program 5096.352. Funds allocated pursuant to subdivision (n) of Section 5096.310 shall be available for expenditure by the State Coastal Conservancy pursuant to Division 21 (commencing with Section 31000) for the acquisition from a willing seller, preservation, restoration, and enhancement of real property or an interest in real property in coastal areas and watersheds within its jurisdiction and the development of public use facilities in those areas in accordance with the following schedule: (a) Twenty-five million dollars ($25,000,000) for projects funded pursuant to the San Francisco Bay Area Conservancy Program established pursuant to Chapter 4.5 (commencing with Section 31160) of Division 21, including at least five million dollars ($5,000,000) for projects consistent with the goals of the San Francisco Bay Joint Venture. (b) Seventy-five million dollars ($75,000,000) for projects in coastal areas and watersheds utilizing the following priorities: (1) Perfection and development of offers to dedicate. (2) Coastal trail completion. (3) Acquisition from a willing seller, development, preservation or restoration of real property, including unique, historic, or scenic lands and other properties needed for public accessways and trails, urban waterfront facilities, and economic development, tourism, or agricultural land preservation. Article 8. Mountain Resource Program 5096.353. Funds allocated pursuant to subdivision (o) of Section 5096.310 shall be available to the Santa Monica Mountains Conservancy for capital outlay and grants for the acquisition from a willing seller, enhancement, and restoration of natural lands, improvement of public recreation facilities, and for grants to local agencies and nonprofit organizations to increase access to parks and recreational opportunities for underserved urban communities, in accordance with the following schedule: (a) Twenty million dollars ($20,000,000) to acquire, improve, or restore park, wildlife, or natural areas, including areas near or adjacent to units of the state park system wherever such units may be situated within a local jurisdiction within the Santa Monica Mountains Zone or Rim of the Valley Trail Corridor. (b) Fifteen million dollars ($15,000,000) for projects to acquire, improve, or restore park, wildlife, or natural areas along the Los Angeles and San Gabriel River corridors and their tributaries, including the Arroyo Seco and Rio Hondo, and the contiguous rights-of-way, access routes, pathways, parkways, greenways, and open spaces adjacent thereto. 5096.354. Funds allocated pursuant to subdivision (p) of Section 5096.310 shall be available to the Coachella Valley Mountains Conservancy for expenditure for the acquisition, development, enhancement, and protection of land, and for administrative costs incurred in connection therewith, in accordance with Division 23.5 (commencing with Section 33500). Article 9. San Joaquin River Program 5096.355. Funds allocated pursuant to subdivision (q) of Section 5096.310 shall be available to the San Joaquin River Conservancy for expenditure of the acquisition, development, enhancement, and protection of land, and for administrative costs incurred in connection therewith, in accordance with Division 22.5 (commencing with Section 32500). Article 10. Agriculture Program 5096.356. Funds allocated pursuant to subdivision (s) of Section 5096.310 shall be available to the Department of Conservation for grants, on a competitive basis, to state and local agencies and nonprofit organizations for farmland protection and administration of the Agricultural Land Stewardship Program Act of 1995 (Division 10.2 (commencing with Section 10200)). This purpose shall include, but not be limited to, the placement of improvements and acquisition of agricultural conservation easements and other interests in land pursuant to the Agricultural Land Stewardship Program. Article 11. Fish and Game Program 5096.357. (a) Funds allocated pursuant to paragraph (1) of subdivision (u) of Section 5096.310 shall be available to the Department of Fish and Game for the development, enhancement, restoration, and preservation of land pursuant to Sections 1580 and 10503 of, and subdivision (b) of Section 1525 of, the Fish and Game Code. The provision of these funds shall be in accordance with an expenditure plan developed by the Department of Fish and Game and approved by the Department Finance. (b) Funds allocated pursuant to paragraph (2) of subdivision (u) of Section 5096.310 shall be deposited in the State Duck Stamp Account of the Fish and Game Preservation Fund and shall be available for expenditure by the Department of Fish and Game for the exclusive purpose of acquiring habitat preservation and enhancement agreements on private wetlands pursuant to the California Waterfowl Habitat Program--Phase II and administrative costs incurred in connection therewith. Article 12. California Indian Tribe Participation 5096.358. To the extent funds authorized pursuant to this chapter are available for expenditure by local government entities, federally recognized California Indian Tribes may apply for those funds, the tribe's application shall be considered on its merits, and the tribes shall expend any funds received for the purpose authorized by this chapter for which the funds are made available. Article 13. Fiscal Provisions 5096.360. Bonds in the total amount of eight hundred forty-nine million five hundred thousand dollars ($849,500,000), not including the amount of any refunding bonds issued in accordance with Section 5096.370, or so much thereof as is necessary, may be issued and sold to provide a fund to be used for carrying out the purposes set forth in Section 5096.310 and to be used to reimburse the General Obligation Bond Expense Revolving Fund pursuant to Section 16724.5 of the Government Code. The bonds, when sold, shall be and constitute a valid and binding obligation of the State of California, and the full faith and credit of the State of California is hereby pledged for the punctual payment of the principal of, and interest on, the bonds as the principal and interest become due and payable. 5096.361. The bonds authorized by this chapter shall be prepared, executed, issued, sold, paid, and redeemed as provided in the State General Obligation Bond Law (Chapter 4 (commencing with Section 16720) of Part 3 of Division 4 of Title 2 of the Government Code), and all of the provisions of that law apply to the bonds and to this chapter and are hereby incorporated in this chapter as though set forth in full in this chapter. 5096.362. (a) Solely for the purpose of authorizing the issuance and sale, pursuant to the State General Obligation Bond Law, of the bonds authorized by this chapter, the Watershed, Wildlife, and Parks Improvement Program Finance Committee is hereby created. For purposes of this chapter, the Watershed, Wildlife, and Parks Improvement Program Finance Committee is "the committee" as that term is used in the State General Obligation Bond Law. The committee consists of the Governor, the Controller, the Director of Finance, the Treasurer, and the secretary, or their designated representatives. The Treasurer shall serve as chairperson of the committee. A majority of the committee may act for the committee. (b) For purposes of the State General Obligation Bond Law, the secretary is designated the "board." 5096.363. The committee shall determine whether or not it is necessary or desirable to issue bonds authorized pursuant to this chapter to carry out Section 5096.310 and, if so, the amount of bonds to be issued and sold. Successive issues of bonds may be authorized and sold to carry out those actions progressively, and it is not necessary that all of the bonds authorized to be issued be sold at any one time. 5096.364. There shall be collected each year and in the same manner and at the same time as other state revenue is collected, in addition to the ordinary revenues of the state, a sum in an amount required to pay the principal of, and interest on, the bonds maturing each year. It is the duty of all officers charged by law with any duty in regard to the collection of the revenue to do and perform each and every act which is necessary to collect that additional sum. 5096.365. Notwithstanding Section 13340 of the Government Code, there is hereby appropriated from the General Fund in the State Treasury, for the purposes of this chapter, an amount that will equal the total of the following: (a) The sum annually necessary to pay the principal of, and interest on, bonds issued and sold pursuant to this chapter, as the principal and interest become due and payable. (b) The sum necessary to carry out Section 5096.366, appropriated without regard to fiscal years. 5096.366. For purposes of carrying out this chapter, the Director of Finance may authorize the withdrawal from the General Fund of an amount or amounts not to exceed the amount of the unsold bonds that have been authorized to be sold for the purpose of carrying out this chapter. Any amount withdrawn shall be deposited in the fund. Any money made available under this section shall be returned to the General Fund from proceeds received from the sale of bonds for the purpose of carrying out this chapter. 5096.367. Pursuant to Chapter 4 (commencing with Section 16720) of Part 3 of Division 4 of Title 2 of the Government Code, the cost of bond issuance shall be paid out of the bond proceeds. These costs shall be shared proportionally by each program funded through this bond act. 5096.367.5. Actual costs incurred in connection with administering programs authorized under the categories specified in Section 5096.310 shall be paid from the funds authorized by this act. 5096.368. The secretary may request the Pooled Money Investment Board to make a loan from the Pooled Money Investment Account, in accordance with Section 16312 of the Government Code, for purposes of carrying out this chapter. The amount of the request shall not exceed the amount of the unsold bonds that the committee, by resolution, has authorized to be sold for the purpose of carrying out this chapter. The secretary shall execute any documents required by the Pooled Money Investment Board to obtain and repay the loan. Any amounts loaned shall be deposited in the fund to be allocated by the board in accordance with this chapter. 5096.369. All money deposited in the fund that is derived from premium and accrued interest on bonds sold shall be reserved in the fund and shall be available for transfer to the General Fund as a credit to expenditures for bond interest. 5096.370. The bonds may be refunded in accordance with Article 6 (commencing with Section 16780) of Chapter 4 of Part 3 of Division 4 of Title 2 of the Government Code, which is a part of the State General Obligation Bond Law. Approval by the voters of the state of the issuance of the bonds described in this chapter includes the approval of the issuance of any bonds to refund any bonds originally issued under this chapter or any previously issued refunding bonds. 5096.371. Notwithstanding any provision of this chapter or the State General Obligation Bond Law, if the Treasurer sells bonds pursuant to this chapter that include a bond counsel opinion to the effect that the interest on the bonds is excluded from gross income for federal tax purposes, subject to designated conditions, the Treasurer may maintain separate accounts for the investment of bond proceeds and the investment earnings on those proceeds. The Treasurer may use or direct the use of those proceeds or earnings to pay any rebate, penalty, or other payment required under federal law or to take any other action with respect to the investment and use of bond proceeds required or desirable under federal law to maintain the tax-exempt status of those bonds and to obtain any other advantage under federal law on behalf of the funds of this state. 5096.372. The Legislature hereby finds and declares that, inasmuch as the proceeds from the sale of bonds authorized by this chapter are not "proceeds of taxes" as that term is used in Article XIIIB of the California Constitution, the disbursement of these proceeds is not subject to the limitations imposed by that article. SEC. 2. Section 1 of this act shall take effect upon adoption by the voters of the Watershed, Wildlife, and Parks Improvement Bond Act of 1998, as set forth in Section 1 of this act. SEC. 3. (a) Notwithstanding the requirements of Sections 9040, 9043, 9044, 9061, and 9082 of the Elections Code, or any other provision of law, the Secretary of State shall submit Section 1 of this act to the voters at the November 3, 1998, direct primary election. (b) The Secretary of State shall ensure the placement of Section 1 of this act on the November 3, 1998, statewide ballot, in accordance with provisions of the Government Code and the Elections Code governing the submission of statewide measures to the voters. (c) The Secretary of State shall include, in the ballot pamphlet mailed pursuant to Section 9094 of the Elections Code, the information specified in Section 9084 of the Elections Code regarding the bond act set forth in Section 1 of this act. SEC. 4. (a) Notwithstanding any other provision of law, with respect to the Watershed, Wildlife, and Parks Improvement Bond Act of 1998, all ballots of the election shall have printed thereon and in a square thereof, exclusively the words: "Watershed, Wildlife, and Parks Improvement Bond Act of 1998" and in the same square under those words, the following in 8-point type: "This act provides eight hundred forty-nine million five hundred thousand dollars ($849,500,000) to protect watersheds, preserve wildlife areas, repair damaged park facilities, preserve beaches and coastal areas, protect old-growth redwood forests, preserve farmlands threatened by urban sprawl, and employ qualified at-risk youth to improve and repair state and local parks. (At this point, the Attorney General shall include the financial impact summary prepared pursuant to Section 9087 of the Elections Code and Section 88003 of the Government Code)." Opposite the square, there shall be left spaces in which the voters may place a cross in the manner required by law to indicate whether they vote for or against the act. (b) Where the voting in the election is done by means of voting machines used pursuant to law in a manner that carries out the intent of this section, the use of the voting machines and the expression of the voter's choice by means thereof are in compliance with this section.BOND ACT OF 1998 Article 1. General Provisions 5096.300. This chapter shall be known, and may be cited, as the Parks and Resources Improvement Bond Act of 1998. 5096.301. The Legislature urgently recommends and respectfully requests that the people of California approve the Parks and Resources Improvement Bond Act of 1998, as set forth in this chapter. This chapter, among other things, addresses the critical need for park, recreation, and conservation area and facility funding by authorizing the sale of a moderate amount of general obligation bonds that must be used judiciously.