BILL NUMBER: AB 2559	CHAPTERED  07/10/08

	CHAPTER  101
	FILED WITH SECRETARY OF STATE  JULY 10, 2008
	APPROVED BY GOVERNOR  JULY 10, 2008
	PASSED THE SENATE  JUNE 26, 2008
	PASSED THE ASSEMBLY  APRIL 24, 2008

INTRODUCED BY   Assembly Member Smyth

                        FEBRUARY 22, 2008

   An act to amend Section 5080.18 of the Public Resources Code,
relating to state parks.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 2559, Smyth. State parks: concession contracts.
   Existing law authorizes the Department of Parks and Recreation to
enter into contracts with natural persons, corporations,
partnerships, and associations for the construction, maintenance, and
operation of concessions within units of the state park system.
Existing law requires those concession contracts to contain certain
specified provisions, including a provision that the maximum term
shall be 10 years, except that a term of more than 10 years may be
provided if the Director of Parks and Recreation determines that the
longer term is necessary to allow the concessionaire to amortize
improvements made by the concessionaire, to facilitate the full
utilization of a structure that is scheduled by the department for
replacement or redevelopment, or to serve the best interests of the
state. Existing law prohibits a term of a concession contract from
exceeding 20 years without specific authorization by statute.
   This bill would authorize the department to enter into a
concession contract for a term of 50 years if the concession contract
is for the construction, development, and operation of multiple-unit
lodging facilities, as specified, that is expected to exceed an
initial cost of $1,500,000 in capital improvements in order to begin
operation. This bill would prohibit a term for this type of
concession contract from exceeding 50 years without specific
authorization by statute.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

  SECTION 1.  Section 5080.18 of the Public Resources Code is amended
to read:
   5080.18.  All concession contracts entered into pursuant to this
article shall contain, but are 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
utilization 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.
   (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.
   (b) Every concessionaire shall submit to the department all sales
and use tax returns.
   (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 his or her 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.