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ices, or the payment or receipt of compensation in connection with claims, 
proceedings, or matters involving the United States. Service as a member 
of the Advisory Board shall not be deemed service in an appointive or elec-
tive position in the Federal Government for purposes of section 8344 of title 
5 or other comparable provisions of Federal law. 
(e) TERMINATION.—The Advisory Board shall continue to exist until De-
cember 31, 2009. In all other respects, it shall be subject to the Federal 
Advisory Committee Act (5 U.S.C. App.). 
§ 1019.20. Contracting for services 
(a) CONTRACTING AUTHORIZED.— 
(1) MANAGEMENT ELEMENTS FOR WHICH CONTRACT REQUIRED.— 
To the maximum extent practicable, the Secretary shall contract with 
private entities to conduct or assist in elements of the management of 
the Service concessions program considered by the Secretary to be suit-
able for non-Federal performance. Those management elements shall 
include each of the following: 
(A) Health and safety inspections. 
(B) Quality control of concessions operations and facilities. 
(C) Strategic capital planning for concessions facilities. 
(D) Analysis of rates and charges to the public. 
(2) MANAGEMENT ELEMENTS FOR WHICH CONTRACT ALLOWED.— 
The Secretary may also contract with private entities to assist the Sec-
retary with each of the following: 
(A) Preparation of the financial aspects of prospectuses for 
Service concession contracts. 
(B) Development of guidelines for a System capital improve-
ment and maintenance program for all concession occupied facili-
ties. 
(C) Making recommendations to the Director regarding the con-
duct of annual audits of concession fee expenditures. 
(b) OTHER MANAGEMENT ELEMENTS.—The Secretary shall consider, 
taking into account the recommendations of the Advisory Board, contracting 
out other elements of the concessions management program, as appropriate. 
(c) AUTHORITY OF SECRETARY NOT DIMINISHED.—Nothing in this sec-
tion shall diminish the governmental responsibilities and authority of the 
Secretary to administer concession contracts and activities pursuant to this 
subchapter and chapter 1003 and sections 1009.01(a), 1009.06, 1021.01, 
and 1021.02 of this title. The Secretary reserves the right to make the final 
decision or contract approval on contracting services dealing with the man-
agement of the Service concessions program under this section. 
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§ 1019.21. Multiple contracts within a System unit 
If multiple concession contracts are awarded to authorize concessioners 
to provide the same or similar outfitting, guiding, river running, or other 
similar services at the same approximate location or resource within a Sys-
tem unit, the Secretary shall establish a comparable franchise fee structure 
for those contracts or similar contracts, except that the terms and condi-
tions of any existing concession contract shall not be subject to modification 
or open to renegotiation by the Secretary because of an award of a new con-
tract at the same approximate location or resource. 
§ 1019.22. Special rule for service contract to provide trans-
portation services 
Notwithstanding any other provision of law, a service contract entered 
into by the Secretary for the provision solely of transportation services in 
a System unit shall be not more than 10 years in length, including a base 
period of 5 years and an annual extension for an additional 5-year period 
based on satisfactory performance and approval by the Secretary. 
§ 1019.23. Use of nonmonetary consideration in concession 
contracts 
Section 1302 of title 40 shall not apply to concession contracts awarded 
by the Secretary pursuant to this subchapter. 
§ 1019.24. Recordkeeping requirements 
(a) IN GENERAL.—A concessioner and any subconcessioner shall keep 
such records as the Secretary may prescribe to enable the Secretary to de-
termine that all terms of a concession contract have been and are being 
faithfully performed. The Secretary and any authorized representative of the 
Secretary shall, for the purpose of audit and examination, have access to 
those records and to other records of the concessioner or subconcessioner 
pertinent to the concession contract and all terms and conditions of the con-
cession contract. 
(b) ACCESS TO RECORDS BY COMPTROLLER GENERAL.—The Comptroller 
General and any authorized representative of the Comptroller General shall, 
until the expiration of 5 calendar years after the close of the business year 
of each concessioner or subconcessioner, have access to and the right to ex-
amine any pertinent records described in subsection (a) of the concessioner 
or subconcessioner related to the contract involved. 
§ 1019.25. Promotion of sale of Indian, Alaska Native, Native 
Samoan, and Native Hawaiian handicrafts 
(a) IN GENERAL.—Promoting the sale of authentic United States Indian, 
Alaskan Native, Native Samoan, and Native Hawaiian handicrafts relating 
to the cultural, historical, and geographic characteristics of System units is 
encouraged, and the Secretary shall ensure that there is a continuing effort 
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to enhance the handicraft trade where it exists and establish the trade in 
appropriate areas where the trade does not exist. 
(b) EXEMPTION FROM FRANCHISE FEE.—In furtherance of the purposes 
of subsection (a), the revenue derived from the sale of United States Indian, 
Alaska Native, Native Samoan, and Native Hawaiian handicrafts shall be 
exempt from any franchise fee payments under this subchapter. 
§ 1019.26. Commercial use authorizations 
(a) IN GENERAL.—To the extent specified in this section, the Secretary, 
on request, may authorize a private person, corporation, or other entity to 
provide services to visitors to System units through a commercial use au-
thorization. A commercial use authorization shall not be considered to be 
a concession contract under this subchapter and no other section of this 
subchapter shall be applicable to a commercial use authorization except 
where expressly stated. 
(b) CRITERIA FOR ISSUANCE OF COMMERCIAL USE AUTHORIZATIONS.— 
(1) REQUIRED DETERMINATIONS.—The authority of this section may 
be used only to authorize provision of services that the Secretary deter-
mines— 
(A) will have minimal impact on resources and values of a Sys-
tem unit; and 
(B) are consistent with the purpose for which the System unit 
was established and with all applicable management plans and 
Service policies and regulations. 
(2) ELEMENTS OF COMMERCIAL USE AUTHORIZATION.—The Sec-
retary shall— 
(A) require payment of a reasonable fee for issuance of a com-
mercial use authorization, the fees to remain available without fur-
ther appropriation to be used, at a minimum, to recover associated 
management and administrative costs; 
(B) require that the provision of services under a commercial 
use authorization be accomplished in a manner consistent to the 
highest practicable degree with the preservation and conservation 
of System unit resources and values; 
(C) take appropriate steps to limit the liability of the United 
States arising from the provision of services under a commercial 
use authorization; 
(D) have no authority under this section to issue more commer-
cial use authorizations than are consistent with the preservation 
and proper management of System unit resources and values; and 
(E) shall establish other conditions for issuance of a commercial 
use authorization that the Secretary determines to be appropriate 
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for the protection of visitors, provision of adequate and appro-
priate visitor services, and protection and proper management of 
System unit resources and values. 
(c) LIMITATIONS.—Any commercial use authorization shall be limited 
to— 
(1) commercial operations with annual gross receipts of not more 
than $25,000 resulting from services originating and provided solely 
within a System unit pursuant to the commercial use authorization; 
(2) the incidental use of resources of the System unit by commercial 
operations that provide services originating and terminating outside the 
boundaries of the System unit; or 
(3)(A) uses by organized children’s camps, outdoor clubs, and non-
profit institutions (including back country use); and 
(B) other uses, as the Secretary determines to be appropriate. 
(d) NONPROFIT INSTITUTIONS.—Nonprofit institutions are not required 
to obtain commercial use authorizations unless taxable income is derived by 
the institution from the authorized use. 
(e) PROHIBITION ON CONSTRUCTION.—A commercial use authorization 
shall not provide for the construction of any structure, fixture, or improve-
ment on federally-owned land within the boundaries of a System unit. 
(f) DURATION.—The term of any commercial use authorization shall not 
exceed 2 years. No preferential right of renewal or similar provisions for re-
newal shall be granted by the Secretary. 
(g) OTHER CONTRACTS.—A person, corporation, or other entity seeking 
or obtaining a commercial use authorization shall not be precluded from 
submitting a proposal for concession contracts. 
§ 1019.27. Regulations 
(a) IN GENERAL.—The Secretary shall prescribe regulations appropriate 
for the implementation of this subchapter. 
(b) CONTENTS.—The regulations— 
(1) shall include appropriate provisions to ensure that concession 
services and facilities to be provided in a System unit are not seg-
mented or otherwise split into separate concession contracts for the 
purposes of seeking to reduce anticipated annual gross receipts of a 
concession contract below $500,000; and 
(2) shall further define the term ‘‘United States Indian, Alaskan Na-
tive, and Native Hawaiian handicrafts’’ for the purposes of this sub-
chapter. 
CHAPTER 1021—PRIVILEGES, LEASES, RENTALS, AND 
PERMITS 
Sec. 
1021.01.
General provisions. 
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