BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                    AB 2249


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          Date of Hearing:  May 4, 2016


                        ASSEMBLY COMMITTEE ON APPROPRIATIONS


                               Lorena Gonzalez, Chair


          AB  
          2249 (Cooley) - As Amended April 18, 2016


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          Urgency:  No  State Mandated Local Program:  NoReimbursable:  No


          SUMMARY:


          This bill revises several provisions of law that govern state  
          park concession contracts.  Specifically, this bill:


          1)Modifies the definition of best responsible bidder to require  
            the bidder to operate the concession in a manner that protects  
            the state's interest in the names associated with the venue  
            and its historical, cultural and recreational resources, as  








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            specified.


          2)Prohibits a concession contract from providing the contracting  
            party with a specified interest in the names associated with a  
            state park venue or its historical, cultural or recreational  
            resources beginning January 1, 2017.  Prohibits a concession  
            contract from serving as the basis for any legal claim that  
            the contracting party has an interest.  Declares these  
            provisions are existing law.  Declares a contract entered into  
            before January 1, 2017, with specified interests void and  
            unenforceable.


          3)Bans state park concessionaires from bidding on future  
            contracts if the concessionaire makes a legal claim with  
            respect to a federal or state park venue, as specified.  


          4)Requires the Department of Parks and Recreation (DPR) to adopt  
            regulations to provide written notice and due process for  
            contract denial.


          5)Requires a concessionaire to pay state legal costs under  
            specified circumstances.


          FISCAL EFFECT:


          1)Initial costs of up to $500,000 for DPR (GF or special fund)  
            to adopt regulations to establish a process for contested  
            contract awards, determine eligibility of concessionaires, and  
            amend existing contracts as necessary. 


          2)Ongoing annual costs of $335,000 (GF or special fund).









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          COMMENTS:


          Rationale.   According to the author, the current concessionaire  
          of Yosemite National Park has operated there since 1993 but  
          recently lost the bid to renew their contract. In response, they  
          claimed the names of several Yosemite landmarks as their  
          intellectual property. Unable to resolve the dispute, the  
          National Park Service has re-named the Ahwahnee Hotel, Curry  
          Village and the Wawona Hotel.  This bill will prevent similar  
          claims in state parks.


          The contract typically used by DPR for state park concessions in  
          California expressly prohibits a concessionaire from obtaining a  
          trademark claim in any name or logo associated with a state  
          park, and provides that any such trademark that might be created  
          during the period of the contract shall continue in DPR's  
          exclusive ownership upon termination of the Contract.  While  
          this is the current practice at DPR, this bill would ensure that  
          such protections continue to apply in the future. 


          





          Analysis Prepared by:Jennifer Galehouse / APPR. / (916)  
          319-2081















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