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(v) ACCOUNTING FOR IMPACT OF PERMITTEES ON PARK 
VALUES AND RESOURCES.—When competitively awarding per-
mits to enter Glacier Bay, the Secretary may take into ac-
count the relative impact particular permittees will have on 
park values and resources, provided that no operating condi-
tions or limitations relating to noise abatement shall be im-
posed unless the Secretary determines, based on the weight 
of the evidence from all available studies including verifiable 
scientific information from the investigations provided for in 
this paragraph, that the limitations or conditions are nec-
essary to protect park values and resources. 
(vi) LIMIT ON AMOUNT OF FEE.—Fees paid by certain per-
mittees for the privilege of entering into Glacier Bay shall not 
exceed $5 per passenger. 
(vii) ADDITIONAL CATEGORIES OF PERMITS OR NUMBER OF 
PERMITS NOT AUTHORIZED.—This subparagraph does not au-
thorize the Secretary to require additional categories of per-
mits in, or otherwise increase the number of permits to enter, 
Glacier Bay National Park. 
(2) UTILITY SERVICES FOR CONCESSIONERS.—The Secretary may 
furnish, on a reimbursement of appropriation basis, all types of utility 
services to concessioners, contractors, permittees, or other users of the 
services, within the System. The reimbursements for cost of the serv-
ices may be credited to the appropriation current at the time reim-
bursements are received. 
Subchapter II—Concession Management 
§ 1019.11. Definitions 
In this subchapter: 
(1) ADVISORY BOARD.—The term ‘‘Advisory Board’’ means the Na-
tional Park Service Concessions Management Advisory Board estab-
lished under section 1019.19 of this title. 
(2) PREFERENTIAL RIGHT OF RENEWAL.—The term ‘‘preferential 
right of renewal’’ means the right of a concessioner, subject to a deter-
mination by the Secretary that the facilities or services authorized by 
a prior contract continue to be necessary and appropriate within the 
meaning of section 1019.12 of this title, to match the terms and condi-
tions of any competing proposal that the Secretary determines to be 
the best proposal for a proposed new concession contract that author-
izes the continuation of the facilities and services provided by the con-
cessioner under its prior contract. 
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§ 1019.12. Findings and declaration of policy 
(a) FINDINGS.—In furtherance of section 1003.01(b), Congress finds that 
the preservation and conservation of System unit resources and values re-
quires that public accommodations, facilities, and services that have to be 
provided within those System units should be provided only under carefully 
controlled safeguards against unregulated and indiscriminate use, so that— 
(1) visitation will not unduly impair those resources and values; and 
(2) development of public accommodations, facilities, and services 
within System units can best be limited to locations that are consistent 
to the highest practicable degree with the preservation and conservation 
of the resources and values of the System units. 
(b) DECLARATION OF POLICY.—It is the policy of Congress that the de-
velopment of public accommodations, facilities, and services in System units 
shall be limited to accommodations, facilities, and services that— 
(1) are necessary and appropriate for public use and enjoyment of 
the System unit in which they are located; and 
(2) are consistent to the highest practicable degree with the preser-
vation and conservation of the resources and values of the System unit. 
§ 1019.13. Award of concession contracts 
In furtherance of the findings and policy stated in section 1019.12 of this 
title, and except as provided by this subchapter or otherwise authorized by 
law, the Secretary shall utilize concession contracts to authorize a person, 
corporation, or other entity to provide accommodations, facilities, and serv-
ices to visitors to System units. Concession contracts shall be awarded as 
follows: 
(1) COMPETITIVE SELECTION PROCESS.—Except as otherwise pro-
vided in this section, all proposed concession contracts shall be awarded 
by the Secretary to the person, corporation, or other entity submitting 
the best proposal, as determined by the Secretary through a competi-
tive selection process. The competitive process shall include simplified 
procedures for small, individually-owned concession contractors. 
(2) SOLICITATION OF PROPOSALS.—Except as otherwise provided in 
this section, prior to awarding a new concession contract (including re-
newals or extensions of existing concession contracts) the Secretary— 
(A) shall publicly solicit proposals for the concession contract; 
and 
(B) in connection with the solicitation, shall— 
(i) prepare a prospectus and publish notice of its avail-
ability at least once in local or national newspapers or trade 
publications, by electronic means, or both, as appropriate; and 
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(ii) make the prospectus available on request to all inter-
ested persons. 
(3) INFORMATION
TO
BE
INCLUDED
IN
PROSPECTUS.—The pro-
spectus shall include the following information: 
(A) The minimum requirements for the contract as set forth in 
paragraph (4). 
(B) The terms and conditions of any existing concession con-
tract relating to the services and facilities to be provided, including 
all fees and other forms of compensation provided to the United 
States by the concessioner. 
(C) Other authorized facilities or services that may be provided 
in a proposal. 
(D) Facilities and services to be provided by the Secretary to 
the concessioner, including public access, utilities, and buildings. 
(E) An estimate of the amount of compensation due an existing 
concessioner from a new concessioner under the terms of a prior 
concession contract. 
(F) A statement as to the weight to be given to each selection 
factor identified in the prospectus and the relative importance of 
those factors in the selection process. 
(G) Other information related to the proposed concession oper-
ation that is provided to the Secretary pursuant to a concession 
contract or is otherwise available to the Secretary, as the Sec-
retary determines is necessary to allow for the submission of com-
petitive proposals. 
(H) Where applicable, a description of a preferential right to 
the renewal of the proposed concession contract held by an exist-
ing concessioner as set forth in paragraph (7). 
(4) CONSIDERATION OF PROPOSALS.— 
(A) MINIMUM REQUIREMENTS.—No proposal shall be consid-
ered that fails to meet the minimum requirements as determined 
by the Secretary. The minimum requirements shall include the fol-
lowing: 
(i) The minimum acceptable franchise fee or other forms 
of consideration to the Federal Government. 
(ii) Any facilities, services, or capital investment required 
to be provided by the concessioner. 
(iii) Measures necessary to ensure the protection, conserva-
tion, and preservation of resources of the System unit. 
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(B) REJECTION OF PROPOSAL.—The Secretary shall reject any 
proposal, regardless of the franchise fee offered, if the Secretary 
determines that— 
(i) the person, corporation, or entity is not qualified or is 
not likely to provide satisfactory service; or 
(ii) the proposal is not responsive to the objectives of pro-
tecting and preserving resources of the System unit and of 
providing necessary and appropriate facilities and services to 
the public at reasonable rates. 
(C) ALL PROPOSALS FAIL TO MEET MIMIMUM REQUIREMENTS 
OR ARE REJECTED.—If all proposals submitted to the Secretary 
fail to meet the minimum requirements or are rejected by the Sec-
retary, the Secretary shall establish new minimum contract re-
quirements and re-initiate the competitive selection process pursu-
ant to this section. 
(D) TERMS AND CONDITIONS MATERIALLY AMENDED OR NOT 
INCORPORATED IN CONTRACT.—The Secretary may not execute a 
concession contract that materially amends or does not incorporate 
the proposed terms and conditions of the concession contract as 
set forth in the applicable prospectus. If proposed material amend-
ments or changes are considered appropriate by the Secretary, the 
Secretary shall resolicit offers for the concession contract incor-
porating the material amendments or changes. 
(5) SELECTION OF THE BEST PROPOSAL.— 
(A) FACTORS IN SELECTION.—In selecting the best proposal, 
the Secretary shall consider the following principal factors: 
(i) The responsiveness of the proposal to the objectives of 
protecting, conserving, and preserving resources of the Sys-
tem unit and of providing necessary and appropriate facilities 
and services to the public at reasonable rates. 
(ii) The experience and related background of the person, 
corporation, or entity submitting the proposal, including the 
past performance and expertise of the person, corporation or 
entity in providing the same or similar facilities or services. 
(iii) The financial capability of the person, corporation, or 
entity submitting the proposal. 
(iv) The proposed franchise fee, except that consideration 
of revenue to the United States shall be subordinate to the 
objectives of protecting, conserving, and preserving resources 
of the System unit and of providing necessary and appro-
priate facilities to the public at reasonable rates. 
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(B) SECONDARY FACTORS.—The Secretary may also consider 
such secondary factors as the Secretary considers appropriate. 
(C) DEVELOPMENT OF REGULATIONS.—In developing regula-
tions to implement this subchapter, the Secretary shall consider 
the extent to which plans for employment of Indians (including 
Native Alaskans) and involvement of businesses owned by Indians, 
Indian tribes, or Native Alaskans in the operation of a concession 
contract should be identified as a factor in the selection of a best 
proposal under this section. 
(6) CONGRESSIONAL NOTIFICATION.— 
(A) IN GENERAL.—The Secretary shall submit any proposed 
concession contract with anticipated annual gross receipts in ex-
cess of $5,000,000 or a duration of more than 10 years to the 
Committee on Natural Resources of the House of Representatives 
and the Committee on Energy and Natural Resources of the Sen-
ate. 
(B) WAITING PERIOD.—The Secretary shall not award any pro-
posed concession contract to which subparagraph (A) applies until 
at least 60 days subsequent to the notification of both Commit-
tees. 
(7) PREFERENTIAL RIGHT OF RENEWAL.— 
(A) IN GENERAL.—Except as provided in subparagraph (B), the 
Secretary shall not grant a concessioner a preferential right to 
renew a concession contract, or any other form of preference to 
a concession contract. 
(B) EXCEPTION.—The Secretary shall grant a preferential right 
of renewal to an existing concessioner with respect to proposed re-
newals of the categories of concession contracts described by para-
graph (8), subject to the requirements of that paragraph. 
(C) ENTITLEMENT TO AWARD OF NEW CONTRACT.—A conces-
sioner that successfully exercises a preferential right of renewal in 
accordance with the requirements of this subchapter shall be enti-
tled to award of the proposed new concession contract to which 
the preference applies. 
(8) OUTFITTER AND GUIDE SERVICES AND SMALL CONTRACTS.— 
(A) APPLICATION.—Paragraph (7) shall apply only to the fol-
lowing: 
(i) Subject to subparagraph (B), concession contracts that 
solely authorize the provision of specialized backcountry out-
door recreation guide services that require the employment of 
specially trained and experienced guides to accompany System 
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unit visitors in the backcountry so as to provide a safe and 
enjoyable experience for visitors who otherwise may not have 
the skills and equipment to engage in that activity. 
(ii) Subject to subparagraph (C), concession contracts with 
anticipated annual gross receipts under $500,000. 
(B) OUTFITTING AND GUIDE CONCESSIONERS.— 
(i) DESCRIPTION.—Outfitting and guide concessioners, 
where otherwise qualified, include concessioners that provide 
guided river running, hunting, fishing, horseback, camping, 
and mountaineering experiences. 
(ii) WHEN ENTITLED TO PREFERENTIAL RIGHT.—An out-
fitting and guide concessioner is entitled to a preferential 
right of renewal under this subchapter only if— 
(I) the contract with the outfitting and guide conces-
sioner does not grant the concessioner any interest, in-
cluding any leasehold surrender interest or possessory in-
terest, in capital improvements on land owned by the 
United States within a System unit, other than a capital 
improvement constructed by a concessioner pursuant to 
the terms of a concession contract prior to November 13, 
1998, or constructed or owned by a concessioner or the 
concessioner’s predecessor before the subject land was 
incorporated into the System; 
(II) the Secretary determines that the concessioner 
has operated satisfactorily during the term of the con-
tract (including any extension); and 
(III) the concessioner has submitted a responsive pro-
posal for a proposed new concession contract that satis-
fies the minimum requirements established by the Sec-
retary pursuant to paragraph (4). 
(C) CONTRACT
WITH
ESTIMATED
GROSS
RECEIPTS
OF
LESS 
THAN $500,000.—A concessioner that holds a concession contract 
that the Secretary estimates will result in gross annual receipts of 
less than $500,000 if renewed shall be entitled to a preferential 
right of renewal under this subchapter if— 
(i) the Secretary has determined that the concessioner has 
operated satisfactorily during the term of the contract (in-
cluding any extension); and 
(ii) the concessioner has submitted a responsive proposal 
for a proposed new concession contract that satisfies the min-
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imum requirements established by the Secretary pursuant to 
paragraph (4). 
(9) NEW OR ADDITIONAL SERVICES.—The Secretary shall not grant 
a preferential right to a concessioner to provide new or additional serv-
ices in a System unit. 
(10) AUTHORITY OF SECRETARY NOT LIMITED.—Nothing in this 
subchapter shall be construed as limiting the authority of the Secretary 
to determine whether to issue a concession contract or to establish its 
terms and conditions in furtherance of the policies expressed in this 
subchapter. 
(11) EXCEPTIONS.—Notwithstanding this section, the Secretary may 
award, without public solicitation, the following: 
(A) TEMPORARY CONTRACT.—To avoid interruption of services 
to the public at a System unit, the Secretary may award a tem-
porary concession contract or an extension of an existing conces-
sions contract for a term not to exceed 3 year, except that prior 
to making the award, the Secretary shall take all reasonable and 
appropriate steps to consider alternatives to avoid the interruption. 
(B) CONTRACT IN EXTRAORDINARY CIRCUMSTANCES.—The Sec-
retary may award a concession contract in extraordinary cir-
cumstances where compelling and equitable considerations require 
the award of a concession contract to a particular party in the 
public interest. Award of a concession contract under this subpara-
graph shall not be made by the Secretary until at least 30 days 
after— 
(i) publication in the Federal Register of notice of the Sec-
retary’s intention to award the contract and the reasons for 
the action; and 
(ii) submission of notice to the Committee on Energy and 
Natural Resources of the Senate and the Committee on Nat-
ural Resources of the House of Representatives. 
§ 1019.14. Term of concession contracts 
A concession contract entered into pursuant to this subchapter shall gen-
erally be awarded for a term of 10 years or less. The Secretary may award 
a contract for a term of up to 20 years if the Secretary determines that 
the contract terms and conditions, including the required construction of 
capital improvements, warrant a longer term. 
§ 1019.15. Protection of concessioner investment 
(a) DEFINITIONS.—In this section: 
(1) CAPITAL
IMPROVEMENT.—The term ‘‘capital improvement’’ 
means a structure, a fixture, or nonremovable equipment provided by 
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a concessioner pursuant to the terms of a concession contract and lo-
cated on land of the United States within a System unit. 
(2) CONSUMER PRICE INDEX.—The term ‘‘Consumer Price Index’’ 
means— 
(A) the ‘‘Consumer Price Index—All Urban Consumers’’ pub-
lished by the Bureau of Labor Statistics of the Department of 
Labor; or 
(B) if the Index is not published, another regularly published 
cost-of-living index approximating the Consumer Price Index. 
(b) LEASEHOLD SURRENDER INTEREST IN CAPITAL IMPROVEMENTS.— 
A concessioner that constructs a capital improvement on land owned by the 
United States within a System unit pursuant to a concession contract shall 
have a leasehold surrender interest in the capital improvement subject to 
the following terms and conditions: 
(1) IN GENERAL.—A concessioner shall have a leasehold surrender 
interest in each capital improvement constructed by a concessioner 
under a concession contract, consisting solely of a right to compensa-
tion for the capital improvement to the extent of the value of the con-
cessioner’s leasehold surrender interest in the capital improvement. 
(2) PLEDGE, TRANSFER, RELINQUISHMENT, AND WAIVER OF INTER-
EST; INTEREST NOT TO BE EXTINGUISHED; WHEN INTEREST MAY BE 
TAKEN FOR PUBLIC USE.—A leasehold surrender interest— 
(A) may be pledged as security for financing of a capital im-
provement or the acquisition of a concession contract when ap-
proved by the Secretary pursuant to this subchapter; 
(B) shall be transferred by the concessioner in connection with 
any transfer of the concession contract and may be relinquished 
or waived by the concessioner; and 
(C) shall not be extinguished by the expiration or other termi-
nation of a concession contract and may not be taken for public 
use except on payment of just compensation. 
(3) VALUE OF INTEREST.—The value of a leasehold surrender inter-
est in a capital improvement shall be an amount equal to the initial 
value (construction cost of the capital improvement), increased (or de-
creased) by the same percentage increase (or decrease) as the percent-
age increase (or decrease) in the Consumer Price Index, from the date 
of making the investment in the capital improvement by the conces-
sioner to the date of payment of the value of the leasehold surrender 
interest, less depreciation of the capital improvement as evidenced by 
the condition and prospective serviceability in comparison with a new 
unit of like kind. 
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(4) VALUE
OF
INTEREST
IN
CERTAIN
NEW
CONCESSION
CON-
TRACTS.— 
(A) HOW VALUE IS DETERMINED.—The Secretary may provide, 
in any new concession contract that the Secretary estimates will 
have a leasehold surrender interest of more than $10,000,000, 
that the value of any leasehold surrender interest in a capital im-
provement shall be based on— 
(i) a reduction on an annual basis, in equal portions, over 
the same number of years as the time period associated with 
the straight line depreciation of the initial value (construction 
cost of the capital improvement), as provided by applicable 
Federal income tax laws and regulations in effect on Novem-
ber 12, 1998; or 
(ii) an alternative formula that is consistent with the objec-
tives of this subchapter. 
(B) WHEN ALTERNATIVE FORMULA MAY BE USED.—The Sec-
retary may use an alternative formula only if the Secretary deter-
mines, after scrutiny of the financial and other circumstances in-
volved in the particular concession contract (including providing 
notice in the Federal Register and opportunity for comment), that 
the alternative formula is, compared to the standard method of de-
termining value provided for in paragraph (3), necessary to pro-
vide a fair return to the Federal Government and to foster com-
petition for the new contract by providing a reasonable oppor-
tunity to make a profit under the new contract. If no responsive 
offers are received in response to a solicitation that includes the 
alternative formula, the concession opportunity shall be resolicited 
with the leasehold surrender interest value as described in para-
graph (3). 
(5) INCREASE IN VALUE OF INTEREST.—Where a concessioner, pur-
suant to the terms of a concession contract, makes a capital improve-
ment to an existing capital improvement in which the concessioner has 
a leasehold surrender interest, the cost of the additional capital im-
provement shall be added to the then-current value of the conces-
sioner’s leasehold surrender interest. 
(c) SPECIAL RULE FOR POSSESSORY INTEREST EXISTING BEFORE NO-
VEMBER 13, 1998.— 
(1) IN GENERAL.—A concessioner that has obtained a possessory in-
terest (as defined pursuant to the Act of October 9, 1965 (known as 
the National Park Service Concessions Policy Act; Public Law 89–249, 
79 Stat. 969), as in effect on November 12, 1998) under the terms 
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of a concession contract entered into before November 13, 1998, shall, 
on the expiration or termination of the concession contract, be entitled 
to receive compensation for the possessory interest improvements in the 
amount and manner as described by the concession contract. Where 
that possessory interest is not described in the existing concession con-
tract, compensation of possessory interest shall be determined in ac-
cordance with the laws in effect on November 12, 1998. 
(2) EXISTING CONCESSIONER AWARDED A NEW CONTRACT.—A con-
cessioner awarded a new concession contract to replace an existing con-
cession contract after November 13, 1998, instead of directly receiving 
the possessory interest compensation, shall have a leasehold surrender 
interest in its existing possessory interest improvements under the 
terms of the new concession contract and shall carry over as the initial 
value of the leasehold surrender interest (instead of construction cost) 
an amount equal to the value of the existing possessory interest as of 
the termination date of the previous concession contract. In the event 
of a dispute between the concessioner and the Secretary as to the value 
of the possessory interest, the matter shall be resolved through binding 
arbitration. 
(3) NEW CONCESSIONER AWARDED A CONTRACT.—A new conces-
sioner awarded a concession contract and required to pay a prior con-
cessioner for possessory interest in prior improvements shall have a 
leasehold surrender interest in the prior improvements. The initial 
value in the leasehold surrender interest (instead of construction cost) 
shall be an amount equal to the value of the existing possessory inter-
est as of the termination date of the previous concession contract. 
(d) TRANSITION TO SUCCESSOR CONCESSIONER.—On expiration or ter-
mination of a concession contract entered into after November 13, 1998, a 
concessioner shall be entitled under the terms of the concession contract to 
receive from the United States or a successor concessioner the value of any 
leasehold surrender interest in a capital improvement as of the date of the 
expiration or termination. A successor concessioner shall have a leasehold 
surrender interest in the capital improvement under the terms of a new con-
cession contract and the initial value of the leasehold surrender interest in 
the capital improvement (instead of construction cost) shall be the amount 
of money the new concessioner is required to pay the prior concessioner for 
its leasehold surrender interest under the terms of the prior concession con-
tract. 
(e) TITLE TO IMPROVEMENTS.—Title to any capital improvement con-
structed by a concessioner on land owned by the United States in a System 
unit shall be vested in the United States. 
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§ 1019.16. Reasonableness of rates and charges 
(a) IN GENERAL.—Each concession contract shall permit the concessioner 
to set reasonable and appropriate rates and charges for facilities, goods, and 
services provided to the public, subject to approval under subsection (b). 
(b) APPROVAL BY SECRETARY REQUIRED.— 
(1) FACTORS TO CONSIDER.—A concessioner’s rates and charges to 
the public shall be subject to approval by the Secretary. The approval 
process utilized by the Secretary shall be as prompt and as 
unburdensome to the concessioner as possible and shall rely on market 
forces to establish reasonableness of rates and charges to the maximum 
extent practicable. The Secretary shall approve rates and charges that 
the Secretary determines to be reasonable and appropriate. Unless oth-
erwise provided in the concession contract, the reasonableness and ap-
propriateness of rates and charges shall be determined primarily by 
comparison with those rates and charges for facilities, goods, and serv-
ices of comparable character under similar conditions, with due consid-
eration to the following factors and other factors deemed relevant by 
the Secretary: 
(A) Length of season. 
(B) Peakloads. 
(C) Average percentage of occupancy. 
(D) Accessibility. 
(E) Availability and costs of labor and materials. 
(F) Type of patronage. 
(2) RATES AND CHARGES NOT TO EXCEED MARKET RATES AND 
CHARGES.—Rates and charges may not exceed the market rates and 
charges for comparable facilities, goods, and services, after taking into 
account the factors referred to in paragraph (1). 
(c) IMPLEMENTATION OF RECOMMENDATIONS.—Not later than 6 months 
after receiving recommendations from the Advisory Board regarding conces-
sioner rates and charges to the public, the Secretary shall implement the 
recommendations or report to Congress the reasons for not implementing 
the recommendations. 
§ 1019.17. Franchise fees 
(a) IN GENERAL.—A concession contract shall provide for payment to the 
Federal Government of a franchise fee or other monetary consideration as 
determined by the Secretary, on consideration of the probable value to the 
concessioner of the privileges granted by the particular contract involved. 
Probable value shall be based on a reasonable opportunity for net profit in 
relation to capital invested and the obligations of the concession contract. 
Consideration of revenue to the United States shall be subordinate to the 
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objectives of protecting and preserving System units and of providing nec-
essary and appropriate services for visitors at reasonable rates. 
(b) PROVISIONS TO BE SPECIFIED IN CONTRACT.—The amount of the 
franchise fee or other monetary consideration paid to the United States for 
the term of the concession contract shall be specified in the concession con-
tract and may be modified only to reflect extraordinary unanticipated 
changes from the conditions anticipated as of the effective date of the con-
cession contract. The Secretary shall include in concession contracts with a 
term of more than 5 years a provision that allows reconsideration of the 
franchise fee at the request of the Secretary or the concessioner in the event 
of extraordinary unanticipated changes. The provision shall provide for 
binding arbitration in the event that the Secretary and the concessioner are 
unable to agree on an adjustment to the franchise fee in those cir-
cumstances. 
(c) SPECIAL ACCOUNT IN TREASURY.— 
(1) DEPOSIT AND AVAILABILITY.—All franchise fees (and other mon-
etary consideration) paid to the United States pursuant to concession 
contracts shall be deposited in a special account established in the 
Treasury. Twenty percent of the funds deposited in the special account 
shall be available for expenditure by the Secretary, without further ap-
propriation, to support activities throughout the System regardless of 
the System unit in which the funds were collected. The funds deposited 
in the special account shall remain available until expended. 
(2) SUBACCOUNT FOR EACH SYSTEM UNIT.—There shall be estab-
lished within the special account a subaccount for each System unit. 
Each subaccount shall be credited with 80 percent of the franchise fees 
(and other monetary consideration) collected at a single System unit 
under concession contracts. The funds credited to the subaccount for 
a System unit shall be available for expenditure by the Secretary, with-
out further appropriation, for use at the System unit for visitor services 
and for purposes of funding high-priority and urgently necessary re-
source management programs and operations. The funds credited to a 
subaccount shall remain available until expended. 
§ 1019.18. Transfer or conveyance of concession contracts or 
leasehold surrender interests 
(a) APPROVAL OF SECRETARY.—No concession contract or leasehold sur-
render interest may be transferred, assigned, sold, or otherwise conveyed or 
pledged by a concessioner without prior written notification to, and approval 
by, the Secretary. 
(b) CONDITIONS.—The Secretary shall approve a transfer or conveyance 
described in subsection (a) unless the Secretary finds that— 
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(1) the individual, corporation, or other entity seeking to acquire a 
concession contract is not qualified or able to satisfy the terms and 
conditions of the concession contract; 
(2) the transfer or conveyance would have an adverse impact on— 
(A) the protection, conservation, or preservation of the resources 
of the System unit; or 
(B) the provision of necessary and appropriate facilities and 
services to visitors at reasonable rates and charges; and 
(3) the terms of the transfer or conveyance are likely, directly or in-
directly, to— 
(A) reduce the concessioner’s opportunity for a reasonable profit 
over the remaining term of the concession contract; 
(B) adversely affect the quality of facilities and services pro-
vided by the concessioner; or 
(C) result in a need for increased rates and charges to the pub-
lic to maintain the quality of the facilities and services. 
(c) MODIFICATION OR RENEGOTIATION OF TERMS.—The terms and con-
ditions of any concession contract under this section shall not be subject to 
modification or open to renegotiation by the Secretary because of a transfer 
or conveyance described in subsection (a) unless the transfer or conveyance 
would have an adverse impact as described in subsection (b)(2). 
§ 1019.19. National Park Service Concessions Management 
Advisory Board 
(a) ESTABLISHMENT AND PURPOSE.—There is a National Park Service 
Concessions Management Advisory Board whose purpose shall be to advise 
the Secretary and Service on matters relating to management of concessions 
in the System. 
(b) DUTIES.— 
(1) ADVICE.—The Advisory Board shall advise on each of the fol-
lowing: 
(A) Policies and procedures intended to ensure that services and 
facilities provided by concessioners— 
(i) are necessary and appropriate; 
(ii) meet acceptable standards at reasonable rates with a 
minimum of impact on park resources and values; and 
(iii) provide the concessioners with a reasonable oppor-
tunity to make a profit. 
(B) Ways to make Service concession programs and procedures 
more cost effective, more process efficient, less burdensome, and 
timelier. 
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(2) RECOMMENDATIONS.—The Advisory Board shall make rec-
ommendations to the Secretary regarding each of the following: 
(A) The Service contracting with the private sector to conduct 
appropriate elements of concession management. 
(B) Ways to make the review or approval of concessioner rates 
and charges to the public more efficient, less burdensome, and 
timelier. 
(C) The nature and scope of products that qualify as Indian, 
Alaska Native, and Native Hawaiian handicrafts within the mean-
ing of this subchapter. 
(D) The allocation of concession fees. 
(3) ANNUAL REPORT.—The Advisory Board shall provide an annual 
report on its activities to the Committee on Natural Resources of the 
House of Representatives and the Committee on Energy and Natural 
Resources of the Senate. 
(c) ADVISORY BOARD MEMBERSHIP.—Members of the Advisory Board 
shall be appointed on a staggered basis by the Secretary for a term not to 
exceed 4 years and shall serve at the pleasure of the Secretary. The Advi-
sory Board shall be comprised of not more than 7 individuals appointed 
from among citizens of the United States not in the employment of the Fed-
eral Government and not in the employment of or having an interest in a 
Service concession. Of the 7 members of the Advisory Board— 
(1) one member shall be privately employed in the hospitality indus-
try and have both broad knowledge of hotel or food service manage-
ment and experience in the parks and recreation concession business; 
(2) one member shall be privately employed in the tourism industry; 
(3) one member shall be privately employed in the accounting indus-
try; 
(4) one member shall be privately employed in the outfitting and 
guide industry; 
(5) one member shall be a State government employee with expertise 
in park concession management; 
(6) one member shall be active in promotion of traditional arts and 
crafts; and 
(7) one member shall be active in a nonprofit conservation organiza-
tion involved in parks and recreation programs. 
(d) SERVICE ON ADVISORY BOARD.—Service of an individual as a mem-
ber of the Advisory Board shall not be deemed to be service or employment 
bringing the individual within the provisions of any Federal law relating to 
conflicts of interest or otherwise imposing restrictions, requirements, or pen-
alties in relation to the employment of individuals, the performance of serv-
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