2023 California Code › Public Resources Code - PRC › DIVISION 5 - PARKS AND MONUMENTS › CHAPTER 1.2 - Operation and Management of State Park System Properties › ARTICLE 1 - Concessions › Section 5080.18.

5080.18. A concession contract entered into pursuant to this article shall contain, but is not limited to, all of the following provisions:
(a) (1) The maximum term shall be 10 years, except that a term of more than 10 years may be provided if the director determines that the longer term is necessary to allow the concessionaire to amortize improvements made by the concessionaire, to facilitate the full use of a structure that is scheduled by the department for replacement or redevelopment, or to serve the best interests of the state. The term shall not exceed 20 years without specific authorization by statute. Except as provided in Section 5080.16, all renewals of concession contracts pursuant to this paragraph shall be subject to competitive bidding requirements.
(2) The maximum term shall be 50 years if the concession contract is for the construction, development, and operation of multiple-unit lodging facilities equipped with full amenities, including plumbing and electrical, that is anticipated to exceed an initial cost of one million five hundred thousand dollars ($1,500,000) in capital improvements in order to begin operation. The term for a concession contract described in this paragraph shall not exceed 50 years without specific authorization by statute. Except as provided in Section 5080.16, all renewals of concession contracts pursuant to this paragraph shall be subject to competitive bidding requirements.
(3) Notwithstanding paragraph (1), a concession agreement at Will Rogers State Beach may be awarded for up to 50 years in length without specific authorization by statute, upon approval by the director and pursuant to a determination by the director that the longer term is necessary to allow the concessionaire to amortize improvements made by the concessionaire that are anticipated to exceed one million five hundred thousand dollars ($1,500,000) in capital improvements.
(4) Notwithstanding paragraph (2), the department may negotiate the term of the existing concession contract with the Crystal Cove Management Company to extend the term of that contract up to an additional 20 years, if the director determines that this term extension is necessary to allow Crystal Cove Management Company to qualify and complete requirements for rehabilitation tax credits pursuant to Section 47 of Title 26 of the United States Code for the rehabilitation of historic structures to facilitate and support the Phase III restoration of the 17 historic cottages at Crystal Cove State Park. This rehabilitation shall include the construction, development, and operation of multiple-unit lodging facilities equipped with full amenities, including plumbing and electrical. Negotiated terms pursuant to this subdivision shall be based on the value of the term’s extension, and may include, but are not limited to, an increased rental rate as consideration for the extended term. All moneys invested by third parties in connection with receipt of these rehabilitation tax credits shall be used for the construction, development, and operation of the Phase III restoration of the 17 historic cottages at Crystal Cove State Park.
(5) (A) Notwithstanding paragraph (2), the department may negotiate a concession contract, for a term of not more than 30 years, or an extension of an existing concession contract, for a term of up to an additional 30 years, and may negotiate other terms, including, but not limited to, rent, based on the value of the term or the term’s extension as consideration for the Mexican Commercial Corner, El Opal Restaurant, and Casa de Bandini and The Cosmopolitan Hotel and Restaurant at Old Town San Diego State Historic Park.
(B) The property known as El Fandango and other adjacent properties may be added to the concession premises to enable increased pedestrian access.
(C) The terms of the concession contract or the extension of an existing concession contract shall require the concessionaire to provide for capital improvements of substantial and additional concession facilities, and improvements of existing concession facilities, to be constructed at the sole expense of the concessionaire, that are consistent with the general plan for Old Town San Diego State Historic Park and are needed to accommodate existing or projected increased public usage. The minimum amount of the capital improvements shall be negotiated between the department and the concessionaire and shall be no less than three million dollars ($3,000,000). The capital improvements shall be the sole property of the state. The capital improvements may include, but are not limited to, both of the following:
(i) The demolishment and reconstruction of the property known as El Fandango. This space may include both indoor and outdoor concession and interpretive opportunities.
(ii) The construction of pedestrian access between the properties known as the Land of the First People exhibit area and the historic core of Old Town San Diego State Historic Park.
(D) Upon the termination of the concession contract or upon the termination of an existing concession contract that was extended, the concession shall be put out to bid in accordance with the bidding requirements of this article.
(b) Every concessionaire shall submit to the department all sales and use tax returns and, at the request of the department, provide an annual financial statement prepared or audited by a certified public accountant.
(c) Every concession shall be subject to audit by the department.
(d) A performance bond shall be obtained and maintained by the concessionaire. In lieu of a bond, the concessionaire may substitute a deposit of funds acceptable to the department. Interest on the deposit shall accrue to the concessionaire.
(e) The concessionaire shall obtain and maintain in force at all times a policy of liability insurance in an amount adequate for the nature and extent of public usage of the concession and naming the state as an additional insured.
(f) Any discrimination by the concessionaire or the concessionaire’s agents or employees against any person because of the marital status or ancestry of that person or any characteristic listed or defined in Section 11135 of the Government Code is prohibited.
(g) To be effective, any modification of the concession contract shall be evidenced in writing.
(h) Whenever a concession contract is terminated for substantial breach, there shall be no obligation on the part of the state to purchase any improvements made by the concessionaire.
(i) If a concessionaire makes a legal claim or assertion to have a trademark or service mark interest in violation of subdivision (a) of Section 5080.22, the concessionaire shall forfeit the right to bid on future state park concession contracts to the extent authorized by federal law.
(j) If a current or former concessionaire in bad faith files a federal or state trademark or service mark application for a trademark or service mark that incorporates or implies an association with a state park venue, or its historical, cultural, or recreational resources, and the state files a successful opposition or cancellation with respect to that trademark or service mark application, the concessionaire shall be responsible for the state’s attorney fees, costs, and expenses associated with that opposition or cancellation.
(Amended by Stats. 2023, Ch. 51, Sec. 20. (SB 122) Effective July 10, 2023.)