[Congressional Record Volume 140, Number 33 (Tuesday, March 22, 1994)]
[Senate]
[Page S]
From the Congressional Record Online through the Government Printing Office [www.gpo.gov]


[Congressional Record: March 22, 1994]
From the Congressional Record Online via GPO Access [wais.access.gpo.gov]

 
      NATIONAL PARK SERVICE CONCESSIONS POLICY REFORM ACT OF 1994

  The PRESIDING OFFICER. Under the previous order, the Senate will 
proceed to a vote on S. 208, to reform the policies of the National 
Park Service, and for other purposes.
  Mr. JOHNSTON. Madam President, I wish to again commend Senator 
Bumpers' for his years of hard work on this important legislation. As 
the subcommittee chairman, he has drafted this legislation, conducted 
the hearings, and negotiated the compromise that we are passing today. 
In addition, I would like to again compliment the Senator from Utah 
[Mr. Bennett] who has worked very closely with Senator Bumpers and the 
rest of us on the Energy Committee in bringing this bill together. He 
brought a fresh, objective and business-oriented view of the 
concessions issue to the table and without his assistance, our road 
would have been much rougher.
  Madam President, I would also like to acknowledge the contribution of 
a number of staff members who have been involved in this legislation--
particularly, David Brooks, Tom Williams, Diane Balamoti, and Jason 
Dilg of the Energy Committee staff; Rich Glick and Tracy Crowley of 
Senator Bumpers staff; and Chip Yost and Jim Barker of Senator 
Bennett's staff. I thank each of them for their help and hard work.
  Mr. SIMPSON. Madam President, I rise to join my colleague, the senior 
Senator from Wyoming, Malcolm Wallop, in opposition to this bill.
  I share my colleagues strong concerns about the provisions that force 
concessionaires to forfeit their private property rights.
  That, in my view, is an unconstitutional taking of private property. 
I do not believe for an instant that the rather convoluted formula for 
depreciation and purchase of the private property is just compensation 
as that phrase is used in the constitution.
  Just means fair and equitable.
  There is nothing just in accelerating a depreciation schedule over 10 
years for some improvements that range in the millions of dollars.
  If the Senate passes this legislation, we will be directing the 
Department of Interior to do nothing less than confiscate the private 
property of concessionaires who have done nothing wrong. Indeed, the 
concessionaires currently doing business in Wyoming National Parks are 
doing a fine job and providing a needed--and much appreciated--service 
to the public.
  I am at a loss to understand why this provision is being supported by 
the administration. It is a puzzling thing.
  I can very easily understand why the Park Service wants to get its 
hands on the revenues from concessionaires. It does not take a rocket 
scientist to understand why the Park Service wants to keep that money, 
rather than turn it over to the Treasury. I hunch that they would like 
to keep it ``off budget'' also. That invites abuse and we should vote 
against this bill because of that provision alone.
  The National Park Service enjoys a billion dollar yearly budget. They 
are constantly saying they ``need more'' funding, and this is an 
attractive mechanism for that. But in terms of services, it is the 
concessionaires that provide the food, the lodging, and the 
recreational opportunities for the vast majority of the public that 
visit our national parks.
  It is the Park Service personnel who enforce the laws and they employ 
many good people who do the ``heavy lifting'' in maintaining the roads 
and the attractions.
  We can not, however, say that the Park Service collects the entrance 
fees, because our experience in Wyoming is that often, those collection 
booths are abandoned.
  We have heard our able colleague, Senator Burns of Montana, speak 
eloquently on that issue last year.
  Instead of ensuring that entrance fees are collected, the 
administration now seems to prefer spending its energy thinking up 
creative ways to request additional revenues from another group of 
taxpayers--concessionaires. Concessionaires pay income, State, and 
local taxes and they pay a great deal.
  This legislation targets those concessionaires--the last remaining 
revenue generating activity in our parks--for eventual extinction. When 
the concessionaires are forced out, who will provide the needed public 
services and amenities?
  Certainly not the Park Service--they have not even been able to 
collect entrance fees on a regular basis.
  We are very fortunate in Wyoming to have some of the finest park 
supervisors in the country. Bob Barbee of Yellowstone Park is one of 
the most able men I have come to know. He does it all. I admire him 
greatly. They are all good people who work cooperatively with the fine 
concessionaires that we are fortunate to have in our Wyoming Parks.
  I do not believe this policy originated at the local park level. We 
need only look about a mile west of this building to find the source of 
this ill-advised and unjust policy.
  There is only a single provision of this bill that has merit. That is 
the provision which grants preferential renewal rights to the ``small'' 
concessionaires: outfitters.
  Outfitters deserve deference in our policy--they are excellent 
stewards and provide services to the general public and often assist 
Park Service personnel in maintenance and upkeep activities. These 
small businesses are entitled to respect for their contributions in the 
management policy of the parks.
  It is most unfortunate that the respect shown the small outfitters in 
this bill did not extend to the administration's policy for all 
concessionaires. It is unfortunate, and it is unjust. I oppose this 
legislation and I encourage my colleagues to oppose it also.
  Mr. WALLOP. Madam President, my opposition to S. 208 is very simple. 
Enactment of this legislation will:
  First, seriously undermine a very successful system under which the 
private sector has financed and provided quality services to the public 
at reasonable rates;
  Second, place increases pressures on an already overextended National 
Park Service budget;
  Third, result in totally unnecessary Federal expenditures at the 
expense of not only the National Park Service, but all agencies which 
must compete for funds from the Interior and Related Agencies 
Appropriation account;
  Fourth, reduce Federal revenues; and
  Fifth, threaten National Park System resources.
  Under the present system the Concession Policy Act of 1965, the 
private sector--not the Federal Government--provides visitor services. 
When Congress passed the Concession Policy Act in 1965, we intended to 
discourage the turnover of concession operations.
  As a matter of Federal policy, we decided that the private sector 
should be encouraged to provide visitor services. They would be 
regulated and would be allowed to make a reasonable profit. In 
exchange, they, not the Federal Government and the taxpayers, would be 
required to raise the capital to construct and maintain facilities to 
standards set by the Federal Government. Continuity of good services at 
reasonable rates to our park visitors was judged to be more important 
than the collection of receipts. That was a time when our national 
parks were considered to be public treasures for the benefit of the 
public. Concessions were never intended to be cash cows for the 
Government, but rather an efficient cost effective means of providing 
visitor services. The Government has full authority to adjust the 
franchise fee to ensure a fair return to the Federal Government under 
the 1965 act, that it has not, speaks to Park Service management, not 
statutory weakness.
  The present system works because concessioners are provided a 
preferential right of renewal if they perform adequately, which ensures 
continuity of service, and a possessory right in all improvements, 
which they can use as collateral for loans. Title to all facilities 
resides in the United States. The concessioner is entitled to the sound 
value of the possessory interest if the contract is not renewed.
  S. 208 eliminates all future possessory interests unless the 
Secretary determines that the elimination of possessory interest will 
prevent the submission of satisfactory proposals, and requires that, as 
a condition of contract renewal, present concessioners agree to have 
their current possessory interest reduced in value over a period of 
years until it is eliminated. I submit that the analysis is simple.
  An existing concessioner with a $5 million possessory interest facing 
renewal can either have his interest reduced to nothing or he can take 
the money. A competitor who might otherwise have bid on the contract 
would be faced with paying the $5 million without its value as 
collateral, since it will be reduced for him as well. What is likely to 
happen is that no one will want the contract until the Federal 
Government pays off the existing concessioner.
  A partial survey of outstanding possessory interests indicate that 
the total exceeds $1 billion with interests ranging from as little as 
$100,000 to over $150 million. CBO estimates that 90 percent of the 
contracts will come under the provisions of the new law within the next 
5 years. If that is correct and my concerns are correct, the Interior 
and related agencies appropriation accounts are facing somewhere 
between $150 million and $200 million of additional unavoidable costs 
each year. That is almost 20 percent of the entire budget for the 
National Park Service just to buy out the existing possessory 
interests. Those costs will come out of the limited funding available 
for all the programs within that subcommittee, and all for no purpose.
  The costs, however, do not end there. Without the possessory interest 
and the right of renewal, there will be neither the collateral nor the 
incentive for concessioners to maintain or expand visitor facilities. 
Those expenses will fall on the National Park Service and the Federal 
taxpayer. If any of you have spent the past 2 months driving the Clara 
Barton memorial parking lot and pothole obstacle avoidance parkway, you 
will have some idea of what the capability of the Park Service is to 
maintain what they already have.
  The claims of increased revenues will not happen. Concessioners will 
still be limited in the charges they can exact from the visitor, and 
will have to recapture the additional expenditures through lower, not 
higher, franchise fees. The Federal deficit will simply increase. 
Competition will not be enhanced, since smaller operations will not 
have access to sufficient collateral. Larger corporations may well now 
be able to force out the small family businesses which have provided 
services in some of our parks for generations. That is not a policy we 
should be encouraging.
  Secretary Babbitt already has authority to gain increased franchise 
fees, to negotiate the relinquishment of possessory interests, and the 
obligation to provide quality services at reasonable rates to the 
public. This legislation simply dismantles a system which works, 
threatens park resources, raids the Treasury, jeopardizes the park 
experience for the public, and all so we can say we reformed a 
carefully crafted partnership which has provided Americans a National 
Park System second to none in the world.
  I ask unanimous consent that a letter from the Babbitt Brothers 
Reading Co.--the Secretary's family business--be inserted in the Record 
at this point. The Senate should find this opposition to the 
Secretary's support more than a little interesting.
  There being no objection, the letter was ordered to be printed in the 
Record, as follows:

                                    Babbitt Bros. Trading Co.,

                                    Flagstaff, AZ, March 11, 1994.
     Mr. Roger G. Kennedy,
     Director, National Park Service, U.S. Department of the 
         Interior, Washington, DC.
       Dear Director Kennedy: I enjoyed your speech to the 
     National Parks Hospitality Association last week. The 
     challenges you face of downsizing and streamlining are the 
     same challenges that many businesses throughout the United 
     States have had to face.
       Babbitts is no different. Over the past five years, we have 
     closed eight unprofitable retail locations and dramatically 
     cut our corporate overhead. Over the past five years, we have 
     dropped from 700 employees to 500 employees.
       With one major exception, our approach to ensuring the 
     survival of a one-hundred-five-year-old company is similar to 
     your approach. In 1987 our company was carrying $20,500,000 
     in bank borrowings (a debt to equity ratio of 9:1). Our 
     survival plan included an aggressive approach to cutting 
     costs and reducing debt. In order to reduce our debt to a 
     manageable level, we had to sell and lease back some of our 
     operating properties.
       The Park Service seems to want to acquire properties at the 
     expense of further increasing the national debt. There is no 
     question that amortizing possessory interest over a period of 
     time will result in lower concession fees and lower revenues 
     to the federal government.
       I won't bore you with any further discussion of Senate Bill 
     208. I'm sure you understand all the pros and cons and the 
     concerns of the concessionaires. Many of those concerns were 
     discussed at the El Tovar Symposium last fall. I respectfully 
     request you consider suggesting two changes to the bill:
       (1) grandfathering existing possessory interest thereby 
     honoring commitments made by the Park Service when 
     improvements were made in the parks; and,
       (2) extending standards lengths of contracts to 15 years. 
     Fifteen year contracts would lessen the administrative burden 
     on the Park Service and would go a long way in ensuring that 
     future National Park improvements would be provided by 
     concessionaires.
       As long as I am writing, I would like to bring to our 
     attention my concerns regarding the General Management Plan 
     at the Grand Canyon. I have enclosed copies of a letter I 
     sent to Bob Chandler and a copy of a letter from Steve 
     Carothers, president of the consulting firm, SWCA, regarding 
     the GMP. I believe my proposals are a reasonable compromise 
     and accomplish the parks objectives with minimal 
     environmental impact.
       Babbitts has had a presence on the south rim of the Grand 
     Canyon since 1905. Our love and appreciation for the park is 
     deeply rooted in the family and our employees. I am concerned 
     about how our Board of Directors and shareholders may view 
     the proposed legislative changes. That coupled with the 
     uncertainty of future contract renewals and impacts from the 
     GMP may result in our company ``cashing out'' of the 
     business.
       We may be just one of many smaller concessionaires leaving 
     the parks.
       I hope you will see fit to intercede in the legislative 
     process.
           Sincerely,
                                                W. David Chambers,
                                                  President & CEO.

  Mr. LAUNTENBERG. Madam President, I am pleased to rise in support of 
S. 208, a compromise sponsored by Senators Bumpers, Johnston, and 
Bennett. S. 208 reforms the Federal Government's system of contracting 
with private concessions in national parks by bringing the management 
of the concessions in line with today's standard business practices and 
by eliminating the sweetheart deals with concessioners that have 
plagued the taxpayer and our national parks for years.
  This reform is long overdue. In the almost three decades since 
Congress enacted the Concessions Policy Act of 1965, management of the 
concessions in national parks has continued without reform. But reform 
is needed now.
  Madam President, since 1965, national parks have witnessed a dramatic 
incerase in visitors and popularity. As a result, the business climate 
for concessioners has improved. Concession incentives drafted in 1965--
like ensuring that the concessioners hold monopoly status, a 
preferential right of renewal and possessory interest, and nominal 
franchise fees--are not needed in the world of 1994. Today, such 
incentives are enjoyed by few businesses in a free market; indeed, no 
concessioner outside the national park system enjoys these deals.
  S. 208 reforms the way Government does business with national park 
concessioners and assures a fairer return on the taxpayer's dollar. In 
1992, concessioners grossed $650 million and paid only $17.2 million in 
fees. That is 2.6 percent of their gross revenues. Concessioners 
outside the NPS system pay an average of 5 to 50 percent of gross.
  This is no way to do business. For too long the Federal Government 
has leased the use of its resources for rockbottom fees. Be it grazing 
fees, logging on public lands, or hard rock mining claims, this method 
of business has got to go.
  Madam President, we all know that the Federal deficit is a major 
concern. We continue to subsidize industries in ways that simply make 
no sense. It is time to stop, and this bill is a good start.
  It is estimated that the competition ensured in this bill may result 
in increased franchise fees amounting to $40 million more dollars to 
the Government. The bill will also establish a special account into 
which the fees will be put that will go back to the parks, instead of 
the General Treasury.
  I have heard that this bill will create a number of dire scenarios--
that the national parks will fall in disarray and it will be the park 
visitor who will truly bear the brunt of the failure. It is curious to 
me that some of those who advocate the virtues of competition for 
Government contracts are against this bill. I do not understand why 
competition in general is good while competition in the national parks 
will result in lower standards. I do not believe this, but it is 
indicative of the gridlock that prevents reform.
  This bill, a compromise bill, will result in fairer management of the 
system, which will give the taxpayers a better bang for their buck 
while enhancing the national parks that are one of our country's 
greatest treasures.
  I am proud to be a cosponsor of this legislation, and I urge my 
colleagues to join me in supporting S. 208.
  The PRESIDING OFFICER. The question is, Shall the bill, as amended, 
pass? The yeas and nays have been ordered. The clerk will call the 
roll.
  The legislative clerk called the roll.
  Mr. FORD. I announce that the Senator from Hawaii [Mr. Inouye] is 
necessarily absent.
  The PRESIDING OFFICER. Are there any other Senators in the Chamber 
desiring to vote?
  The result was announced--yeas 90, nays 9, as follows:

                      [Rollcall Vote No. 63 Leg.]

                                YEAS--90

     Akaka
     Baucus
     Bennett
     Biden
     Bingaman
     Bond
     Boren
     Boxer
     Bradley
     Breaux
     Brown
     Bryan
     Bumpers
     Burns
     Byrd
     Campbell
     Chafee
     Coats
     Cochran
     Cohen
     Conrad
     Coverdell
     Craig
     D'Amato
     Danforth
     Daschle
     DeConcini
     Dodd
     Dole
     Domenici
     Dorgan
     Durenberger
     Exon
     Feingold
     Feinstein
     Ford
     Glenn
     Gorton
     Graham
     Gramm
     Grassley
     Gregg
     Harkin
     Hatch
     Hatfield
     Heflin
     Hutchison
     Jeffords
     Johnston
     Kassebaum
     Kempthorne
     Kennedy
     Kerrey
     Kerry
     Kohl
     Lautenberg
     Leahy
     Levin
     Lieberman
     Lott
     Lugar
     Mack
     Mathews
     McCain
     McConnell
     Metzenbaum
     Mikulski
     Mitchell
     Moseley-Braun
     Moynihan
     Murray
     Nickles
     Nunn
     Packwood
     Pell
     Pressler
     Pryor
     Reid
     Riegle
     Robb
     Rockefeller
     Roth
     Sarbanes
     Sasser
     Simon
     Smith
     Specter
     Warner
     Wellstone
     Wofford

                                NAYS--9

     Faircloth
     Helms
     Hollings
     Murkowski
     Shelby
     Simpson
     Stevens
     Thurmond
     Wallop

                             NOT VOTING--1

       
     Inouye
       
  So the bill (S. 208), as amended, was passed, as follows:

                                 S. 208

       Be it enacted by the Senate and House of Representatives of 
     the United States of America in Congress assembled,

     SECTION 1. SHORT TITLE.

       This Act may be cited as the ``National Park Service 
     Concessions Policy Reform Act of 1994''.

     SEC. 2. FINDINGS AND POLICY.

       (a) Findings.--In furtherance of the Act of August 25, 1916 
     (39 Stat. 535), as amended (16 U.S.C. 1, 2-4), which directs 
     the Secretary of the Interior to administer areas of the 
     National Park System in accordance with the fundamental 
     purpose of preserving their scenery, wildlife, natural and 
     historic objects, and providing for their enjoyment in a 
     manner that will leave them unimpaired for the enjoyment of 
     future generations, the Congress finds that the preservation 
     and conservation of park resources and values requires that 
     such public accommodations, facilities, and services as the 
     Secretary determines are necessary and appropriate in 
     accordance with this Act--
       (1) should be provided only under carefully controlled 
     safeguards against unregulated and indiscriminate use so that 
     visitation will not unduly impair these values; and
       (2) should be limited to locations and designs consistent 
     to the highest practicable degree with the preservation and 
     conservation of park resources and values.
       (b) Policy.--It is the policy of the Congress that--
       (1) development within a park shall be limited to those 
     facilities and services that the Secretary determines are 
     necessary and appropriate for public use and enjoyment of the 
     park in which such facilities and services are located;
       (2) development within a park should be consistent to the 
     highest practicable degree with the preservation and 
     conservation of the park's resources and values;
       (3) such facilities and services should be provided by 
     private persons, corporations, or other entities, except when 
     no private interest is qualified and willing to provide such 
     facilities and services;
       (4) if the Secretary determines that development should be 
     provided within a park, such development shall be designed, 
     located, and operated in a manner that is consistent with the 
     purposes for which such park was established;
       (5) such facilities and services should be awarded to the 
     person, corporation, or entity submitting the best proposal 
     through a competitive selection process; and
       (6) such facilities or services should be provided to the 
     public at reasonable rates.

     SEC. 3. DEFINITIONS.

       As used in this Act, the term--
       (1) ``concessioner'' means a person, corporation, or other 
     entity to whom a concessions contract has been awarded;
       (2) ``concessions contract'' means a contract, including 
     permits, to provide facilities or services, or both, at a 
     park;
       (3) ``facilities'' means improvements to real property 
     within parks used to provide accommodations, facilities, or 
     services to park visitors;
       (4) ``park'' means a unit of the National Park System;
       (5) ``proposal'' means the complete proposal for a 
     concessions contract offered by a potential or existing 
     concessioner in response to the minimum requirements for the 
     contract established by the Secretary; and
       (6) ``Secretary'' means the Secretary of the Interior.

     SEC. 4. REPEAL OF CONCESSIONS POLICY ACT OF 1965.

       The Act of October 9, 1965, Public Law 89-249 (79 Stat. 
     969, 16 U.S.C. 20-20g), entitled ``An Act relating to the 
     establishment of concession policies administered in the 
     areas administered by the National Park Service and for other 
     purposes'', is hereby repealed. The repeal of such Act shall 
     not affect the validity of any contract entered into under 
     such Act, but the provisions of this Act shall apply to any 
     such contract except to the extent such provisions are 
     inconsistent with the express terms and conditions of the 
     contract.

     SEC. 5. CONCESSIONS POLICY.

       Subject to the findings and policy stated in section 2 of 
     this Act, and upon a determination by the Secretary that 
     facilities or services are necessary and appropriate for the 
     accommodation of visitors at a park, the Secretary shall, 
     consistent with the provisions of this Act, laws relating 
     generally to the administration and management of units of 
     the National Park System, and the park's general management 
     plan, concessions plan, or other applicable plans, authorize 
     private persons, corporations, or other entities to provide 
     and operate such facilities or services as the Secretary 
     deems necessary and appropriate.

     SEC. 6. COMPETITIVE SELECTION PROCESS.

       (a) In General.--(1) Except as provided in subsection (b), 
     and consistent with the provisions of subsection (g), any 
     concessions contract entered into pursuant to this Act shall 
     be awarded to the person submitting the best proposal as 
     determined by the Secretary, through a competitive selection 
     process.
       (2) Within 180 days after the date of enactment of this 
     Act, the Secretary shall promulgate appropriate regulations 
     establishing such process. The regulations shall include 
     provisions for establishing a method or 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 requirements or provide such 
     services, if any, as set forth in a prospectus pursuant to 
     sections 6(c)(2) (D) and (E).
       (b) Temporary Contract.--Notwithstanding the provisions of 
     subsection (a), the Secretary may award a temporary 
     concessions contract in order to avoid interruption of 
     services to the public at a park except that the Secretary 
     shall take all reasonable and appropriate steps to consider 
     competing alternatives for such contract.
       (c) Prospectus.--(1) Prior to soliciting proposals for a 
     concessions contract at a park, the Secretary shall publish a 
     notice of availability for a prospectus soliciting proposals 
     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.
       (2) The prospectus shall include, but need not be limited 
     to, the following information:
       (A) The minimum requirements for such contract, as set 
     forth in subsection (d).
       (B) The terms and conditions of the existing concessions 
     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 within a park by 
     the Secretary, including but not limited to, interpretive 
     programs, campsites, and visitor centers.
       (F) Such other information related to the proposed 
     concessions operation which is not privileged or otherwise 
     exempt from disclosure under Federal law as the Secretary 
     determines 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 minimum requirements as 
     determined by the Secretary. Such minimum requirements shall 
     include, but need not be limited to, the minimum acceptable 
     franchise fee, the duration of the contract, facilities, 
     services, or capital investment required to be provided by 
     the concessioner, and measures needed to ensure the 
     protection and preservation of park resources.
       (2) The Secretary may reject any proposal, notwithstanding 
     the amount of franchise fee offered, if the Secretary 
     determines that the person, corporation, or entity is not 
     qualified, 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 reasonable 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 selection 
     process pursuant to this section.
       (e) Selection of Best Proposal.--(1) In selecting the best 
     proposal, the Secretary shall consider the following 
     principal factors:
       (A) The responsiveness of the proposal to the objectives of 
     protecting and preserving park resources 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 performance and expertise of such 
     person, corporation, or entity in providing the same or 
     similar facilities or services.
       (C) The financial capability of the person, corporation, or 
     entity submitting the proposal.
       (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.
       (f) Congressional Notification.--(1) The Secretary shall 
     submit any proposed concessions contract with anticipated 
     annual gross receipts in excess of $5,000,000 (indexed to 
     1993 constant dollars) or a duration of ten or more years to 
     the Committee on Energy and Natural Resources of the United 
     States Senate and the Committee on Natural Resources of the 
     United States House of Representatives.
       (2) The Secretary shall not ratify any such proposed 
     contract until at least 60 days subsequent to the 
     notification 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 concessions 
     contract executed pursuant to this Act.
       (2)(A) Notwithstanding the provisions of paragraph (1), the 
     Secretary shall grant a preferential right of renewal to a 
     concessioner--
       (i) for a concessions contract which--
       (I) primarily authorizes a concessioner to provide 
     outfitting, guide, river running, or other similar services 
     within a park; and
       (II) does not grant the concessioner any interest in any 
     structure, fixture, or improvement pursuant to section 11 of 
     this Act; or
       (III) the Secretary estimates will have annual gross 
     revenues of no more than $500,000; and
       (ii) where the Secretary determines that the concessioner 
     has operated satisfactorily during the term of the previous 
     contract; and
       (iii) where the Secretary determines that the concessioner 
     submits a responsive proposal for the new contract which 
     satisfies the minimum requirements established by the 
     Secretary.
       (B) For the purposes of paragraph (2), the term 
     ``preferential right of renewal'' means that the Secretary 
     shall allow a concessioner satisfying the requirements of 
     subparagraph (A) the opportunity to match the terms and 
     conditions of any competing proposal which the Secretary 
     determines to be the best offer.
       (h) No Preferential Right To Additional Services.--The 
     Secretary shall not grant a preferential right to a 
     concessioner to provide new or additional services at a park.

     SEC. 7. FRANCHISE FEES.

       (a) In General.--Franchise fees, however, stated, 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 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 
     concessions 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. Such fee shall reflect fair market value, as 
     determined by the Secretary.

     SEC. 8. USE OF FRANCHISE FEES.

       (a) Special Account.--Except as provided in subsection (b), 
     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, subject to 
     appropriation, solely as follows:
       (1) 50 percent shall be allocated among the units of the 
     National Park System in the same proportion as franchise fees 
     collected from a specific unit bears to the total amount 
     covered into the account 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 Secretary, to be used for resource 
     management and protection, maintenance activities, 
     interpretation, and research.
       (b) Park Improvement Fund.--(1) In lieu of collecting all 
     or a portion of the franchise fees that would otherwise be 
     collected pursuant to the concessions contract, the Secretary 
     shall, where the Secretary determines it to be practicable, 
     require a concessioner to establish a Park Improvement Fund 
     (hereinafter in this section referred to as the ``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 financial 
     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 necessary to 
     ensure the financial integrity of such fund.
       (3) Monies from the fund, including interest, shall be 
     expended by the concessioner solely as directed by the 
     Secretary 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 limited to projects 
     which directly or indirectly support concession facilities or 
     services required by the concessions contract. Projects paid 
     for from the fund shall not include routine, operational 
     maintenance of 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 11 of this Act.
       (5) Nothing in this subsection shall affect the obligation 
     of a concessioner to insure, maintain, and repair any 
     structure, fixture, or improvement assigned to such 
     concessioner and to insure that such structure, fixture, or 
     improvement 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 statements, canceled 
     checks, and such other information as the Secretary 
     determines to be necessary.
       (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 reflect monthly 
     deposits, expenditures by project, interest earned, and such 
     other information as the Secretary requires.
       (8) Upon the termination of a concessions contract, or upon 
     the sale or transfer of such contract, any remaining balance 
     in the fund shall be transferred by the concessioner to the 
     successor concessioner, to be used solely as set forth in 
     this subsection. In the event there is not a successor 
     concessioner, the fund balance shall be deposited into the 
     special account established in subsection (a).

     SEC. 9. DURATION OF CONTRACT.

       (a) Maximum Term.--A concessions 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 not to exceed twenty years if the 
     Secretary determines that the contract terms and conditions 
     necessitate a longer term.
       (b) Temporary Contract.--A temporary concessions contract 
     awarded on a non-competitive basis pursuant to section 6(b) 
     of this Act shall be for a term not to exceed two years.

     SEC. 10. TRANSFER OF CONTRACT.

       (a) In General.--(1) No concessions 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 approve the transfer of a 
     concessions contract to any individual, corporation or other 
     entity if the Secretary determines 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; or
       (B) such transfer, assignment, sale or conveyance is not 
     consistent with the objectives of protecting and preserving 
     park resources, and of providing necessary and appropriate 
     facilities or services to the public at reasonable rates: 
     Provided, That such approval shall not be unreasonably 
     withheld.
       (b) Congressional Notification.--Within thirty days after 
     receiving a proposal to transfer, assign, sell, or otherwise 
     convey a concessions contract, the Secretary shall notify the 
     Committee on Energy and Natural Resources of the United 
     States Senate and the Committee on Natural Resources of the 
     United States House of Representatives of such proposal. 
     Approval of such proposal, if granted by the Secretary, shall 
     not take effect until sixty days after the date of 
     notification of both Committees.

     SEC. 11. PROTECTION OF CONCESSIONER INVESTMENT.

       (a) Existing Structures.--(1) A concessioner who before the 
     date of the enactment of this Act has acquired or 
     constructed, or is required under an existing concessions 
     contract to commence acquisition or construction of any 
     structure, fixture, or improvement upon land owned by the 
     United States within a park, pursuant to a concessions 
     contract, shall have a possessory interest therein, to the 
     extent provided by such contract.
       (2) The provisions of this subsection shall not apply to a 
     concessioner whose contract in effect on the date of 
     enactment of this Act does not include recognition of a 
     possessory interest.
       ``(3)(A) Except as provided in subparagraph (B), with 
     respect to a concessions contract entered into on or after 
     the date of enactment of this Act, the provisions of 
     subsection (b) shall apply to any existing structure, 
     fixture, or improvement as defined in paragraph (a)(1), 
     except that the value of the possessory interest as of the 
     termination date of the first contract expiring after the 
     date of enactment of this Act shall be used as the basis for 
     depreciation, in lieu of the actual original cost of such 
     structure, fixture, or improvement.
       ``(B) If the Secretary determines during the competitive 
     selection process that all proposals submitted either fail to 
     meet the minimum requirements or are rejected (as provided in 
     section 6), the Secretary may, solely with respect to a 
     structure, fixture, or improvement covered under this 
     paragraph, suspend the depreciation provisions of subsection 
     (b)(1) for the duration of the contract: Provided, That the 
     Secretary may suspend such depreciation provisions only if 
     the Secretary determines that the establishment of other new 
     minimum contract requirements is not likely to result in the 
     submission of satisfactory proposals, and that the suspension 
     of the depreciation provisions is likely to result in the 
     submission of satisfactory proposals.
       (b) 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, fixture, or improvement 
     upon land owned by the United States within a park, pursuant 
     to a concessions contract, shall have an interest in such 
     structure, fixture, or improvement equivalent to the actual 
     original cost of acquiring or constructing such structure, 
     fixture, or improvement, less straight line depreciation over 
     the estimated useful life of the asset according to Generally 
     Accepted Accounting Principles: Provided, That in no event 
     shall the estimated useful life of such asset exceed the 
     depreciation period used for such asset for Federal income 
     tax purposes.
       (2) In the event that the contract expires or is terminated 
     prior to the recovery of such costs, the concessioner shall 
     be entitled to receive from the United States or the 
     successor concessioner payment equal to the value of the 
     concessioner's interest in such structure, fixture, or 
     improvement. A successor concessioner may not revalue the 
     interest in such structure, fixture, or improvement, the 
     method of depreciation, or the estimated useful life of the 
     asset.
       (3) Title to any such structure, fixture, or improvement 
     shall be vested in the United States.
       (c) Insurance, Maintenance and Repair.--Nothing in this 
     section shall affect the obligation of a concessioner to 
     insure, maintain, and repair any structure, fixture, or 
     improvement assigned to such concessioner and to insure that 
     such structure, fixture, or improvement fully complies with 
     applicable safety and health laws and regulations.

     SEC. 12. RATES AND CHARGES TO PUBLIC.

       The reasonableness of a concessioner's rates and charges to 
     the public shall, unless otherwise provided in the bid 
     specifications and contract, be judged primarily by 
     comparison with those rates and charges for facilities and 
     services of comparable character under similar conditions, 
     with due consideration for length of season, seasonal 
     variance, average percentage of occupancy, accessibility, 
     availability and costs of labor and materials, type of 
     patronage, and other factors deemed significant by the 
     Secretary.

     SEC. 13. CONCESSIONER PERFORMANCE EVALUATION.

       (a) Regulations.--Within one hundred and eighty days after 
     the date of enactment of this Act, the Secretary shall 
     publish, after an appropriate period for public comment, 
     regulations establishing standards and criteria for 
     evaluating the performance of concessions operating within 
     parks.
       (b) Periodic Evaluation.--(1) The Secretary shall 
     periodically conduct an evaluation of each concessioner 
     operating under a concessions contract pursuant to this Act, 
     as appropriate, to determine whether such concessioner has 
     performed satisfactorily. In evaluating a concessioner's 
     performance, the Secretary shall seek and consider applicable 
     reports and comments from appropriate Federal, State, and 
     local regulatory agencies, and shall seek and consider the 
     applicable views of park visitors and concession customers. 
     If the Secretary's performance evaluation results in an 
     unsatisfactory rating of the concessioner's overall 
     operation, the Secretary shall provide the concessioner with 
     a list of the minimum requirements necessary for the 
     operation to be rated satisfactory, and shall so notify the 
     concessioner in writing.
       (2) The Secretary may terminate a concessions contract if 
     the concessioner fails to meet the minimum operational 
     requirements identified by the Secretary within the time 
     limitations established by the Secretary at the time notice 
     of the unsatisfactory rating is provided to the concessioner.
       (3) If the Secretary terminates a concessions contract 
     pursuant to this section, the Secretary shall solicit 
     proposals for a new contract consistent with the provisions 
     of this Act.
       (c) Congressional Notification.--The Secretary shall notify 
     the Committee on Energy and Natural Resources of the United 
     States Senate and the Committee on Natural Resources of the 
     United States House of Representatives of each unsatisfactory 
     rating and of each concessions contract terminated pursuant 
     to this section.

     SEC. 14. RECORDKEEPING REQUIREMENTS.

       (a) In General.--Each concessioner shall keep such records 
     as the Secretary may prescribe to enable the Secretary to 
     determine that all terms of the concessioner's contract have 
     been, and are being faithfully performed, and the Secretary 
     or any of the Secretary's duly authorized representatives 
     shall, for the purpose of audit and examination, have access 
     to such records and to other books, documents and papers of 
     the concessioner pertinent to the contract and all the terms 
     and conditions thereof as the Secretary deems necessary.
       (b) General Accounting Office Review.--The Comptroller 
     General of the United States or any of his or her duly 
     authorized representatives shall, until the expiration of 
     five calendar years after the close of the business year for 
     each concessioner, have access to and the right to examine 
     any pertinent books, documents, papers, and records of the 
     concessioner related to the contracts or contracts involved.

     SEC. 15. EXEMPTION FROM CERTAIN LEASE REQUIREMENTS.

       The provisions of section 321 of the Act of June 30, 1932 
     (47 Stat. 412; 40 U.S.C. 303b), relating to the leasing of 
     buildings and properties of the United States, shall not 
     apply to contracts awarded by the Secretary pursuant to this 
     Act.

     SEC. 16. NO EFFECT ON ANILCA PROVISIONS.

       Nothing in this Act shall be construed to amend, supersede, 
     or otherwise affect any provision of the Alaska National 
     Interest Lands Conservation Act (16 U.S.C. 3101 et seq.).

     SEC. 17. IMPLEMENTATION.

       Beginning on June 1, 1997 and bi-annually thereafter the 
     Inspector General of the Department of the Interior shall 
     submit a report to the Committee on Energy and Natural 
     Resources of the United States Senate and the appropriate 
     Committees of the House of Representatives on the 
     implementation of this Act and the effect of such 
     implementation on facilities operated pursuant to concession 
     contracts and on visitor services. Each report shall--
       (a) identify any concession contracts which have been 
     renewed, renegotiated, terminated, or transferred during the 
     year prior to the submission of the report and identify any 
     significant changes in the terms of the new contract;
       (b) state the amount of franchise fees the rates which 
     would be charged for services, and the level of other 
     services required to be provided by the concessioner in 
     comparison to that required in the previous contract;
       (c) assess the degree to which concession facilities are 
     being maintained using the condition of such facilities on 
     the date of enactment of this Act as a baseline;
       (d) determine whether competition has been increased or 
     decreased with respect to the awarding of each contract;
       (e) set forth the amount of revenues received and financial 
     obligations incurred or reduced by the Federal Government as 
     a result of the comparison of the Act for the reporting 
     period and in comparison with previous reporting periods and 
     the baseline year of 1993, including the costs, if any, 
     associated with the acquisition of possessory interests.

  Mr. MITCHELL. Madam President, I move to reconsider the vote by which 
the bill, as amended, was passed.
  Mr. BYRD. I move to lay that motion on the table.
  The motion to lay on the table was agreed to.

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