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 under subparagraph (A)(ii) 
only if the Secretary determines, after scrutiny of the financial 
and other circumstances involved in the particular concession con-
tract (including providing notice in the Federal Register and op-
portunity for comment), that the alternative formula is, compared 
to the standard method of determining value provided for in para-
graph (5), necessary to provide a fair return to the Federal Gov-
ernment and to foster competition for the new contract by pro-
viding a reasonable opportunity to make a profit under the new 
contract. If no responsive offers are received in response to a solic-
itation that includes the alternative formula, the concession oppor-
tunity shall be resolicited with the leasehold surrender interest 
value as described in paragraph (5). 
(7) 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 
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-
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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. 
(4) DE NOVO REVIEW OF VALUE DETERMINATION.—If the Secretary, 
or either party to a value determination proceeding conducted under a 
Service concession contract issued before November 13, 1998, considers 
that the value determination decision issued pursuant to the proceeding 
misinterprets or misapplies relevant contractual requirements or their 
underlying legal authority, the Secretary or either party may seek, 
within 180 days after the date of the decision, de novo review of the 
value determination decision by the United States Court of Federal 
Claims. The Court of Federal Claims may make an order affirming, 
vacating, modifying or correcting the determination decision. 
(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. 
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(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. 
§ 101916. Reasonableness of rates and charges 
(a) IN GENERAL.—A 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. 
§ 101917. 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. 
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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 
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. 
§ 101918. 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 
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