SEC. 7. COMPETITIVE SELECTION PROCESS.
(a) IN GENERAL.—(1) Except as provided in sub-
section (b), and consistent with the provisions of sub-
section (g), any concession contract entered into pursuant
to this Act shall be awarded to the person, corporation,
or other entity submitting the best proposal as determined
by the Secretary, through a competitive selection process,
as provided in this section.
(2)(A) As soon as practicable after the date of enact-
ment of this Act, the Secretary shall promulgate appro-
priate regulations establishing the competitive selection
process.
(B) The regulations shall include provisions for estab-
lishing a procedure for the resolution of disputes between
the Secretary and a concessioner in those instances where
the Secretary has been unable to meet conditions or re-
quirements or provide such services, if any, as set forth
in a prospectus pursuant to sections 7(c)(2) (D) and (E).
(b) TEMPORARY CONTRACT.—Notwithstanding the
provisions of subsection (a), the Secretary may award a
temporary concession contract in order to avoid interrup-
tion of services to the public at a park, except that prior
to making such a determination, the Secretary shall take
all reasonable and appropriate steps to consider alter-
natives to avoid such an interruption.
(c) PROSPECTUS.—(1)(A) Prior to soliciting propos-
als for a concession contract at a park, the Secretary shall
prepare a prospectus soliciting proposals, and shall publish
a notice of its availability at least once in local or national
newspapers or trade publications, as appropriate, and
shall make such prospectus available upon request to all
interested parties.
(B) A prospectus shall assign a weight to each factor
identified therein related to the importance of such factor
in the selection process. Points shall be awarded for each
such factor, based on the relative strength of the proposal
concerning that factor.
(2) The prospectus shall include, but need not be lim-
ited to, the following information—
(A) the minimum requirements for such con-
tract, as set forth in subsection (d);
(B) the terms and conditions of the existing
concession contract awarded for such park, if any,
including all fees and other forms of compensation
provided to the United States by the concessioner;
(C) other authorized facilities or services which
may be provided in a proposal;
(D) facilities and services to be provided by the
Secretary to the concessioner, if any, including but
not limited to, public access, utilities, and buildings;
(E) minimum public services to be offered with-
in a park by the Secretary, including but not limited
to, interpretive programs, campsites, and visitor cen-
ters; and
(F) such other information related to the pro-
posed concession operation as is provided to the Sec-
retary pursuant to a concession contract or is other-
wise available to the Secretary, as the Secretary de-
termines is necessary to allow for the submission of
competitive proposals.
(d) MINIMUM PROPOSAL REQUIREMENTS.—(1) No
proposal shall be considered which fails to meet the mini-
mum requirements as determined by the Secretary. Such
minimum requirements shall include, but need not be lim-
ited to—
(A) the minimum acceptable franchise fee;
(B) any facilities, services, or capital investment
required to be provided by the concessioner; and
(C) measures necessary to ensure the protection
and preservation of park resources.
(2) The Secretary shall reject any proposal, notwith-
standing the franchise fee offered, if the Secretary deter-
mines that the person, corporation, or entity is not quali-
fied, is likely to provide unsatisfactory service, or that the
proposal is not responsive to the objectives of protecting
and preserving park resources and of providing necessary
and appropriate facilities or services to the public at rea-
sonable rates.
(3) If all proposals submitted to the Secretary either
fail to meet the minimum requirements or are rejected by
the Secretary, the Secretary shall establish new minimum
contract requirements and re-initiate the competitive se-
lection process pursuant to this section.
(e) SELECTION OF BEST PROPOSAL.—(1) In select-
ing the best proposal, the Secretary shall consider the fol-
lowing principal factors:
(A) the responsiveness of the proposal to the
objectives of protecting and preserving park re-
sources and of providing necessary and appropriate
facilities and services to the public at reasonable
rates;
(B) the experience and related background of
the person, corporation, or entity submitting the
proposal, including but not limited to, the past per-
formance and expertise of such person, corporation,
or entity in providing the same or similar facilities
or services;
(C) the financial capability of the person, cor-
poration, or entity submitting the proposal; and
(D) the proposed franchise fee: Provided, That
consideration of revenue to the United States shall
be subordinate to the objectives of protecting and
preserving park resources and of providing necessary
and appropriate facilities or services to the public at
reasonable rates.
(2) The Secretary may also consider such secondary
factors as the Secretary deems appropriate.
(3) In developing regulations to implement this Act,
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 concession con-
tracts should be identified as a factor in the selection of
a best proposal under this section.
(f) CONGRESSIONAL NOTIFICATION.—(1) The Sec-
retary shall submit any proposed concession contract with
anticipated annual gross receipts in excess of $5,000,000
or a duration of ten or more years to the Committee on
Energy and Natural Resources of the United States Sen-
ate and the Committee on Resources of the United States
House of Representatives.
(2) The Secretary shall not award any such proposed
contract until at least 60 days subsequent to the notifica-
tion of both Committees.
(g) NO PREFERENTIAL RIGHT OF RENEWAL.—(1)
Except as provided in paragraph (2), the Secretary shall
not grant a preferential right to a concessioner to renew
a concession contract entered into pursuant to this Act.
(2) The Secretary shall grant a preferential right of
renewal with respect to a concession contract covered by
subsection (i), subject to the requirements of such sub-
section.
(A) As used in this subsection, and subsection
(i), the term ‘‘preferential right of renewal’’ means
that the Secretary shall allow a concessioner satisfy-
ing the requirements of this subsection (and sub-
section (i)) the opportunity to match the terms and
conditions of any competing proposal which the Sec-
retary determines to be the best proposal.
(B) A concessioner who exercises a preferential
right of renewal in accordance with the requirements
of this paragraph shall be entitled to award of the
new concession contract with respect to which such
right is exercised.
(h) CONTRACTS WITH ANNUAL GROSS RECEIPTS
UNDER $500,000.—The provisions of paragraph (g)(2)
shall apply to a concession contract—
(1) which the Secretary estimates will result in
annual gross receipts of less than $500,000;
(2) where the Secretary has determined that
the concessioner has operated satisfactorily during
the term of the contract (including any extensions
thereof); and
(3) that the concessioner has submitted a re-
sponsive proposal for a new concession contract
which satisfies the minimum requirements estab-
lished by the Secretary pursuant to section 7.
(i) NO PREFERENTIAL RIGHT TO ADDITIONAL SERV-
ICES.—The Secretary shall not grant a preferential right
to a concessioner to provide new or additional services at
a park.
SEC. 8. FRANCHISE FEES.
(a) IN GENERAL.—Franchise fees shall not be less
than the minimum fee established by the Secretary for
each contract. The minimum fee shall be determined in
a manner that will provide the concessioner with a reason-
able opportunity to realize a profit on the operation as
a whole, commensurate with the capital invested and the
obligations assumed under the contract.
(b) MULTIPLE CONTRACTS WITHIN
A PARK.—If
multiple concession contracts are awarded to authorize
concessioners to provide the same or similar outfitting,
guide, river running, or other similar services at the same
approximate location or resource within a specific park,
the Secretary shall establish an identical franchise fee for
all such contracts, subject to periodic review and revision
by the Secretary. Such fee shall reflect fair market value.
(c) ADJUSTMENT
OF
FRANCHISE
FEES.—The
amount of any franchise fee for the term of the concession
contract shall be specified in the concession contract and
may only be modified to reflect substantial changes from
the conditions specified or anticipated in the contract.
SEC. 9. USE OF FRANCHISE FEES.
(a) DEPOSITS TO TREASURY.—All receipts collected
pursuant to this Act shall be covered into a special account
established in the Treasury of the United States. Amounts
covered into such account in a fiscal year shall be available
for expenditure by the Secretary, without further appro-
priation, solely as follows:
(1) Fifty percent shall be allocated among the
units of the National Park System in the same pro-
portion as franchise fees collected from a specific
unit bears to the total amount covered into the ac-
count for each fiscal year, to be used for resource
management and protection, maintenance activities,
interpretation, and research.
(2) Fifty percent shall be allocated among the
units of the National Park System on the basis of
need, in a manner to be determined by the Sec-
retary, to be used for resource management and pro-
tection, maintenance activities, interpretation, and
research.
(b) 
EXISTING
CONCESSIONER
IMPROVEMENT
FUNDS.—Nothing in this section shall affect or restrict
the use of funds maintained by a concessioner in an exist-
ing concessioner improvement account pursuant to a con-
cession contract in effect as of the date of enactment of
this Act. No new, renewed, or extended contracts entered
into after the date of enactment of this Act shall provide
for or authorize the use of such concessioner improvement
accounts.
(c) INSPECTOR GENERAL AUDITS.—Beginning in fis-
cal year 1998, the Inspector General of the Department
of the Interior shall conduct a biennial audit of the conces-
sion fees generated pursuant to this Act. The Inspector
General shall make a determination as to whether conces-
sion fees are being collected and expended in accordance
with this Act and shall submit copies of each audit to the
Committee on Energy and Natural Resources of the
United States Senate and the Committee on Resources of
the United States House of Representatives.
SEC. 10. DURATION OF CONTRACT.
(a) MAXIMUM TERM.—A concession contract entered
into pursuant to this Act shall be awarded for a term not
to exceed ten years: Provided, however, That the Secretary
may award a contract for a term of up to twenty years
if the Secretary determines that the contract terms and
conditions necessitate a longer term.
(b) TEMPORARY CONTRACT.—A temporary conces-
sion contract awarded on a non-competitive basis pursuant
to section 7(b) shall be for a term not to exceed two years.
SEC. 11. TRANSFER OF CONTRACT.
(a) IN GENERAL.—No concession contract may be
transferred, assigned, sold, or otherwise conveyed by a
concessioner without prior written notification to, and ap-
proval of the Secretary.
(b) APPROVAL OF TRANSFER.—The Secretary shall
not unreasonably withhold approval of a transfer, assign-
ment, sale, or conveyance of a concession contract, but
shall not approve the transfer, assignment, sale, or convey-
ance of a concession contract to any individual, corpora-
tion or other entity if the Secretary determines that—
(1) such individual, corporation or entity is, or
is likely to be, unable to completely satisfy all of the
requirements, terms, and conditions of the contract;
(2) such transfer, assignment, sale or convey-
ance is not consistent with the objectives of protect-
ing and preserving park resources, and of providing
necessary and appropriate facilities or services to the
public at reasonable rates;
(3) such transfer, assignment, sale, or convey-
ance relates to a concession contract which does not
provide to the United States consideration commen-
surate with the probable value of the privileges
granted by the contract; or
(4) the terms of such transfer, assignment, sale,
or conveyance directly or indirectly attribute a sig-
nificant value to intangible assets or otherwise may
so reduce the opportunity for a reasonable profit
over the remaining term of the contract that the
United States may be required to make substantial
additional expenditures in order to avoid interrup-
tion of services to park visitors.
SEC. 12. PROTECTION OF CONCESSIONER INVESTMENT.
(a) CURRENT CONTRACT.—(1) A concessioner who
before the date of the enactment of this Act has acquired
or constructed, or is required under an existing concession
contract to commence acquisition or construction of any
structure, fixture, or improvement upon land owned by the
United States within a park, pursuant to such contract,
shall have a possessory interest therein, to the extent pro-
vided by such contract.
(2) Unless otherwise provided in such contract, said
possessory interest shall not be extinguished by the expira-
tion or termination of the contract and may not be taken
for public use without just compensation. Such possessory
interest may be assigned, transferred, encumbered, or re-
linquished.
(3) Upon the termination of a concession contract in
effect before the date of enactment of this Act, the Sec-
retary shall determine the value of any outstanding
possesory interest applicable to the contract, such value
to be determined for all purposes on the basis of applicable
laws and contracts in effect on the day before the date
of enactment of this Act.
(4) Nothing in this subsection shall be construed to
grant a possessory interest to a concessioner whose con-
tract in effect on the date of enactment of this Act does
not include recognition of a possessory interest.
(b) NEW CONTRACTS.—(1)(A) With respect to a con-
cession contract entered into on or after the date of enact-
ment of this Act, the value of any outstanding possessory
interest associated with such contract shall be set at the
value determined by the Secretary pursuant to subsection
(a)(3).
(B) As a condition of entering into a concession con-
tract, the value of any outstanding possessory interest
shall be reduced on an annual basis, in equal portions,
over the same number of years as the time period associ-
ated with the straight line depreciation of the structure,
fixture, or improvement associated with such possessory
interest, as provided by applicable Federal income tax laws
and regulations in effect on the day before the date of
enactment of this Act.
(C) In the event that the contract expires or is termi-
nated prior to the elimination of any outstanding
possessory interest, the concessioner shall be entitled to
receive from the United States or the successor conces-
sioner payment equal to the remaining value of the
possessory interest.
(D) A successor concessioner may not revalue any
outstanding possessory interest, nor the period of time
over which such interest is reduced.
(E) Title to any structure, fixture, or improvement
associated with any outstanding possessory interest shall
be vested in the United States.
(2)(A) If the Secretary determines during the com-
petitive selection process that all proposals submitted ei-
ther fail to meet the minimum requirements or are re-
jected (as provided in section 7), the Secretary may, solely
with respect to any outstanding possessory interest associ-
ated with the contract and established pursuant to a con-
cession contract entered into prior to the date of enact-
ment of this Act, suspend the reduction provisions of sub-
section (b)(1)(B) for the duration of the contract, and re-
initiate the competitive selection process as provided in
section 7.
(B) The Secretary may suspend such reduction provi-
sions only if the Secretary determines that the establish-
ment of other new minimum contract requirements is not
likely to result in the submission of satisfactory proposals,
and that the suspension of the reduction provisions is like-
ly to result in the submission of satisfactory proposals:
Provided, however, That nothing in this paragraph shall
be construed to require the Secretary to establish a mini-
mum franchise fee at a level below the franchise fee in
effect for such contract on the day before the expiration
date of the previous contract.
(c) NEW STRUCTURES.—(1) On or after the date of
enactment of this Act, a concessioner who constructs or
acquires a new, additional, or replacement structure, fix-
ture, or improvement upon land owned by the United
States within a park, pursuant to a concession contract,
shall have an interest in such structure, fixture, or im-
provement equivalent to the actual original cost of acquir-
ing or constructing such structure, fixture, or improve-
ment, less straight line depreciation over the estimated