(B) The Secretary shall take appropriate steps to en-
able all holders of contracts covered by this subsection,
and all parties seeking to obtain such contracts, to be
aware of the criteria established pursuant to this para-
graph.
(i) CONTRACTS WITH ANNUAL GROSS RECEIPTS
UNDER $500,000.—(1) The provisions of subsection
(g)(2) shall also apply to a concession contract—
(A) which the Secretary estimates will result in
annual gross receipts of less than $500,000;
(B) where the Secretary has determined that
the concessioner has operated satisfactorily during
the term of the contract (including any extensions
thereof); and
(C) 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 6 of this
Act.
(2) The provisions of this subsection shall not apply
to a concession contract covered by subsection (h).
SEC. 506. FRANCHISE FEES.
(a) IN GENERAL.—Franchise fees, however stated,
shall not be less than the minimum franchise fee estab-
lished by the Secretary for each contract. The minimum
franchise fee shall be determined in a manner that will
provide the concessioner with a reasonable opportunity to
realize a profit on the operation as a whole, commensurate
with the capital invested and the obligations assumed.
(b) MULTIPLE CONTRACTS WITHIN
A PARK.—If
multiple concession contracts are awarded to authorize
concessioners to provide the same outfitting, guide, river
running, or other similar services at the same approximate
location within a specific park, the Secretary shall estab-
lish a standardized schedule of franchise fees for all such
contracts, subject to periodic review and revision by the
Secretary.
SEC. 507. USE OF FRANCHISE FEES.
(a) SPECIAL ACCOUNT.—Except as provided in sub-
section (b), all receipts including fees for use of federally
owned buildings or other facilities collected pursuant to
this title 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, subject to appropriation, solely as follows:
(1) 50 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) 50 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) PARK IMPROVEMENT FUND.—(1) In lieu of col-
lecting all or a portion of the franchise fees that would
otherwise be collected pursuant to the concession contract,
the Secretary shall, where the Secretary determines it to
be practicable, require a concessioner to establish a Park
Improvement Fund in which the concessioner shall deposit
the franchise fees that would otherwise be required by the
contract.
(2) The fund shall be maintained by the concessioner
in an interest bearing account in a federally insured finan-
cial institution. The concessioner shall maintain the fund
separately from any other funds or accounts and shall not
co-mingle the monies in the fund with any other monies.
The Secretary may establish such other terms, conditions,
or requirements as the Secretary determines to be nec-
essary to ensure the financial integrity of the fund.
(3) Monies from the fund, including interest, shall be
expended solely for activities and projects within the park
which are consistent with the park’s general management
plan, concessions plan, and other applicable plans, and
which the Secretary determines will enhance public use,
safety, and enjoyment of the park, including but not lim-
ited to projects which directly or indirectly support conces-
sion facilities or services required by the concession con-
tract, but no expenditure from the fund shall have the ef-
fect of creating or increasing any compensable interest of
any concessioner in any such facilities. A concessioner
shall not be allowed to make any advances or credits to
the fund.
(4) A concessioner shall not be granted any interest
in improvements made from fund expenditures, including
any interest granted pursuant to section 310 of this title.
(5) Nothing in this subsection shall affect the obliga-
tion of a concessioner to insure, maintain, and repair any
structure, fixture, or improvement assigned to such con-
cessioner and to insure that such structure, fixture, or im-
provement fully complies with applicable safety and health
laws and regulations.
(6) The concessioner shall maintain proper records
for all expenditures made from the fund. Such records
shall include, but not be limited to invoices, bank state-
ments, canceled checks, and such other information as the
Secretary may require.
(7) The concessioner shall annually submit to the
Secretary a statement reflecting total activity in the fund
for the preceding financial year. The statement shall re-
flect monthly deposits, expenditures by project, interest
earned, and such other information as the Secretary re-
quires.
(8) A fund established pursuant to this subsection
may not be used for any capital expenditure exceeding
$2,500,000 in any fiscal year unless such expenditure
from a fund has been authorized in advance by Act of Con-
gress. The Secretary shall annually inform the Congress
concerning the actual and projected use of moneys in each
fund established pursuant to this subsection.
(9) Upon the termination of a concession contract,
or upon the sale or transfer of such contract, any remain-
ing balance in the fund shall be transferred by the conces-
sioner to the successor concessioner, to be sued solely as
set forth in this subsection. In the event there is no succes-
sor concessioner, the fund balance shall be deposited into
the special account established in subsection (a).
SEC. 508. DURATION OF CONTRACT.
(a) MAXIMUM TERM.—A concession contract entered
into pursuant to this title shall be awarded for a term not
to exceed ten years: Provided, however, That the Secretary
may award a contract for a term not to exceed twenty
years if the Secretary determines that a longer term is
a necessary component of the overall contract in order to
reduce the costs to the United States of acquiring
possessory interests or to carry out the policies of this title
and other laws applicable to the National Park System.
(b) TEMPORARY CONTRACT.—A temporary conces-
sion contract awarded on a non-competitive basis pursuant
to section 505(b) of this title shall be for a term not to
exceed two years.
SEC. 509. TRANSFER OF CONTRACT.
(a) IN GENERAL.—(1) No concession contract may
be transferred, assigned, sold, or otherwise conveyed by
a concessioner without prior written notification to, and
approval of the Secretary.
(2) The Secretary shall not unreasonably withhold
approval of a transfer, assignment, sale, or conveyance of
a concession contract, but shall not approve the transfer
of a concession contract to any individual, corporation or
other entity if, among other matters, the Secretary deter-
mines that—
(A) 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;