BILL ANALYSIS Ó AB 2249 Page 1 Date of Hearing: May 4, 2016 ASSEMBLY COMMITTEE ON APPROPRIATIONS Lorena Gonzalez, Chair AB 2249 (Cooley) - As Amended April 18, 2016 ----------------------------------------------------------------- |Policy |Water, Parks and Wildlife |Vote:|15 - 0 | |Committee: | | | | | | | | | | | | | | |-------------+-------------------------------+-----+-------------| | |Judiciary | |10 - 0 | | | | | | | | | | | ----------------------------------------------------------------- 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 AB 2249 Page 2 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). AB 2249 Page 3 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 AB 2249 Page 4