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[Federal Register Volume 65, Number 128 (Monday, July 3, 2000)]
[Notices]
[Page 41083]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 00-16783]

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DEPARTMENT OF THE INTERIOR

National Park Service

National Park Service Concession Contract Franchise Fees

AGENCY: National Park Service, Interior.

ACTION: Notice Regarding Franchise Fee Determination

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SUMMARY: On February 6, 1998, the National Park Service (NPS) published 
in the Federal Register a notice regarding the continuation of 
guidelines for determining franchise fees for NPS concession contracts. 
On November 13, 1998, Title IV of Public Law 105-391 amended NPS 
statutory authorities regarding concession contracts, including 
provisions concerning franchise fees. This notice provides the public 
with information as to NPS concession contract franchise fee 
determinations under the terms of Title IV of Public Law 105-391.

EFFECTIVE DATE: On or before August 2, 2000.

FOR FURTHER INFORMATION CONTACT: Cindy Orlando, Concession Program 
Manager, National Park Service, 1849 C Street, NW, Washington, DC 
20240.

SUPPLEMENTARY INFORMATION: the February 6, 1998, Federal Register 
notice concerning NPS franchise fee determinations re-adopted those 
portions of the NPS concession contracting guidelines (NPS-48) that 
concern determinations of concession contract franchise fees, including 
determinations of franchise fees for new (or reviewed) concession 
contracts and possible adjustments to the franchise fees of existing 
concession contracts during their term. On April 17, 2000, NPS 
published in the Federal Register final new regulations for the NPS 
concession contracting program (36 CFR Part 51).
    Title IV of Public Law 105-391 repealed the statutory authorities 
under which the franchise fee guidelines were developed. In addition, 
Section 407 of Public Law 105-391 established new statutory authorities 
and policies regarding NPS concession contract franchise fees. Title IV 
of Public Law 105-391 also included other provisions that have 
implications for concession contract franchise fees, including, without 
limitation, the establishment of leasehold surrender interest in 
certain capital improvements constructed pursuant to a concession 
contract.
    Section 407(a) of Public Law 105-391 reads as follows:

    SEC. 407(a). A concession contract shall provide for payment to 
the government of a franchise fee or such other monetary 
consideration as determined by the Secretary, upon consideration of 
the probable value to the concessioner of the privileges granted by 
the particular contract involved. Such probable value shall be based 
upon a reasonable opportunity for net profit in relation to capital 
invested and the obligations of the contract. Consideration of 
revenue to the United States shall be subordinate to the objectives 
of protecting and preserving park areas and of providing necessary 
and appropriate services for visitors at reasonable rates.

    In light of the enactment of Title IV of Public Law 105-391, NPS 
hereby withdraws Chapter 24, Section D (``Franchise Fee'') of NPS-48 as 
outdated. The terms and conditions of current concession contracts and 
permits remain in effect except as may otherwise be provided by Section 
415(a) of Public Law 105-391.
    Until such time as NPS may adopt more specific new franchise fee 
determination guidelines reflecting the terms and conditions of Title 
IV of Public Law 105-391, NPS will establish minimum franchise fees for 
new (or renewed) concession contracts on a case by case basis in 
accordance with the terms of Section 407(a) of Public Law 105-391 and 
will include the proposed minimum franchise fee in concession contract 
prospectuses issued pursuant to 36 CFR part 51. The establishment of 
minimum franchise fees will consider the probable value to the 
concessioner of the privileges to be granted by the new contract. This 
probable value will be based upon a reasonable opportunity for net 
profit in relation to capital invested and the obligations of the 
contract. Consideration of revenue to the United states shall be 
subordinate to the objectives of protecting and preserving park areas 
and of providing necessary and appropriate services for visitors at 
reasonable rates.

    Dated: June 27, 2000.
Maureen Finnerty,
Associate Director, Park Operations and Education.
[FR Doc. 00-16783 Filed 6-30-00; 8:45 am]
BILLING CODE 4310-70-M
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