Article 1 - Concessions

California Public Resources Code — §§ 5080.02-5080.29

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Sections (26)

Added by Stats. 1982, Ch. 1487, Sec. 7. Effective September 28, 1982.

As used in this article, the following terms shall have the following meanings:

(a)“Board” means the State Public Works Board.
(b)“Commission” means the State Park and Recreation Commission.
(c)“Contract” means a contract for the construction, maintenance, and operation of a concession.

Added by Stats. 1982, Ch. 1487, Sec. 7. Effective September 28, 1982.

(a)The department may 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 for the safety and convenience of the general public in the use and enjoyment of, and the enhancement of recreational and educational experiences at, units of the state park system.
(b)Concessions shall not be entered into solely for their revenue producing potential.
(c)With respect to any unit of the state park system for which a general development plan has been approved by the commission, any proposed concession at that unit shall be compatible with that plan.

Amended by Stats. 2018, Ch. 742, Sec. 6. (SB 1493) Effective January 1, 2019.

(a)Except as provided in Section 5080.16, all contracts authorizing occupancy of any portion of the state park system for a period of more than three years shall be awarded to the best responsible bidder.
(b)“Best responsible bidder” means the bidder, as determined by specific standards established by the department, that, as determined by the department, will operate the concession (1) consistent with the contract, (2) in a manner fully compatible with, and complementary to, the characteristics, features, and theme of the unit in which the concession will be operated, (3) in the best interests of the state and public, and (4) in a manner that protects the state’s trademark and service mark rights in the names associated with a state park venue and its

historical, cultural, and recreational resources. For purposes of this section, a bidder who would be subject to subdivision (b) of Section 5080.22 is not a best responsible bidder.

Amended by Stats. 2017, Ch. 230, Sec. 1. (AB 1504) Effective January 1, 2018.

For a contract authorizing occupancy by the concessionaire for a period of more than three years of any portion of the state park system, the department shall prepare an invitation to bid, which shall include a summary of the terms and conditions of the concession sufficient to enable persons to bid solely on the basis of rates to be paid to the state. The invitation to bid shall specify the minimum acceptable rent,

except in instances in which a minimum acceptable rent cannot be ascertained because of the novelty or uniqueness of the service or facility to be provided or in instances in which the department has determined that a better return to the state can be secured by not specifying a minimum acceptable rent. Bids shall be made only on the basis of the invitation to bid.

Amended by Stats. 2025, Ch. 401, Sec. 6. (AB 1520) Effective January 1, 2026.

(a)Notwithstanding the provisions of Sections 11080 and 11081 of the Government Code, public notice to bidders shall be given of all proposed contracts authorizing the occupancy of property in the state park system for a period of more than three years, as follows:
(1)The department shall advertise the notice through appropriate public media to the extent that the department determines is sufficient to provide adequate coverage.
(2)If the director determines that, in view of the type of concession involved, the public interest would be best served by the solicitation of bids from out-of-state bidders, the director shall give

additional notice as the director finds is best suited to attract bids from out-of-state bidders.

(b)The published notice shall state where bid forms may be obtained, the time and place for the receiving and opening of sealed bids, and shall describe, in general terms, the concession to be operated.

Added by Stats. 1982, Ch. 1487, Sec. 7. Effective September 28, 1982.

(a)The department shall require from prospective bidders answers to questions contained in a standard form of questionnaire and financial statement, including a complete statement of the prospective bidder’s financial ability and experience in maintaining and operating similar or related concessions or business activities. When completed, the questionnaire and financial statement shall be verified under oath by the bidder.
(b)The questionnaires and financial statements are confidential and are not open to public inspection. However, this subdivision shall not be construed to prevent reference thereto or use thereof in a civil action or a criminal prosecution by the state for a false statement contained therein.

Added by Stats. 1982, Ch. 1487, Sec. 7. Effective September 28, 1982.

All bids shall be presented under sealed cover.

Added by Stats. 1982, Ch. 1487, Sec. 7. Effective September 28, 1982.

Whether or not bids are opened exactly at the time fixed in the public notice for opening bids, a bid shall not be received after that time.

Added by Stats. 1982, Ch. 1487, Sec. 7. Effective September 28, 1982.

Any bid may be withdrawn at any time prior to the time fixed in the public notice for the opening of bids, but only by written request of the withdrawal of the bid filed with the director. The request shall be signed by the bidder or by an authorized representative. The withdrawal of a bid does not prejudice the right of a bidder to file a new bid prior to the date and time set for the opening of bids.

This section does not authorize the withdrawal of any bid after the time fixed in the public notice for the opening of bids.

Added by Stats. 1982, Ch. 1487, Sec. 7. Effective September 28, 1982.

On the day named in the public notice, the department shall publicly open the sealed bids. The department shall carefully study and analyze all bids and, on or after the 15th day after the bids are opened, may award the concession to the bidder then determined to be the best responsible bidder.

Added by Stats. 1982, Ch. 1487, Sec. 7. Effective September 28, 1982.

If the successful bidder does not sign and deliver the contract within 30 days of receipt thereof and does not provide the state with a bond or other surety and evidence of insurance required thereunder, and on the time limit presented, the department may elect to treat that omission as a refusal to execute the contract. If the director deems it is for the best interests of the state, he or she may, on the refusal or failure of the successful bidder to execute the contract, award it to the second best responsible bidder.

If the second best responsible bidder fails or refuses to execute the contract, the director may likewise award it to the third best responsible bidder.

Added by Stats. 1982, Ch. 1487, Sec. 7. Effective September 28, 1982.

If the director deems that the acceptance of any bid is not for the best interests of the state, he or she may reject all bids.

Added by Stats. 1982, Ch. 1487, Sec. 7. Effective September 28, 1982.

A bidder shall not be relieved of his or her bid and no change shall be made in his or her bid because of mistakes.

Amended by Stats. 2017, Ch. 230, Sec. 2. (AB 1504) Effective January 1, 2018.

If the director determines that it is in the best interests of the state, the director, upon giving notice to the commission, may negotiate or renegotiate a contract, including terms and conditions, when one or more of the following conditions exist:

(a)The bid process as prescribed in this article has failed to produce a best responsible bidder.
(b)The negotiation or renegotiation would constitute an extension of an existing contract obtained through the process required by this article and the extended contract would provide for substantial and additional concession facilities, which would be constructed at the sole expense of the

concessionaire and which are set forth in the general plan for the unit and are needed to accommodate existing or projected increased public usage.

(c)Lands in the state park system administered by the department and lands under the legal control of the prospective concessionaire are so situated that the concession is dependent upon the use of those public and private lands for the physical or economic success, or both, of the concession.
(d)Whenever a concession is desired for particular interpretive purposes in a unit of the state park system and the prospective concessionaire possesses special knowledge, experience, skills, or ability appropriate to the particular interpretive purposes.
(e)Whenever the concession has

been severely and adversely impacted through no fault of the concessionaire by an unanticipated calamity, park closure, major construction, or other harmful event or action, including, but not limited to, drought, restricted access, and fires.

(f)Whenever the estimated administrative costs for the bid process exceed the projected annual net rental revenue to the state.

Amended by Stats. 1994, Ch. 1067, Sec. 2. Effective September 29, 1994.

(a)Every contract awarded pursuant to the bidding requirements of this article, pursuant to the request for proposal process specified in Section 5080.23, or negotiated or renegotiated pursuant to Section 5080.16, shall be submitted to the Attorney General for approval for legal sufficiency and to the Director of General Services for approval pursuant to Section 11005.2 of the Government Code, the requirements of which are the only requirements applicable to the approval of contracts entered into pursuant to this article. The concession contract is not binding on the state until approved by the Attorney General and the Director of General Services.
(b)Notwithstanding Section 11005.2 of the Government Code and subdivision (a) of this section, the approval of a concession contract by the Director of General Services shall not be required unless the concession contract authorizes occupancy of a unit of the state park system for a period of more than one year.

Amended by Stats. 2025, Ch. 401, Sec. 7. (AB 1520) Effective January 1, 2026.

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)(A) 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.
(B)Notwithstanding any other law or any other agreement, in furtherance of a concession agreement, pending concession agreement, or amendment to a concession agreement between the County of Los Angeles and a private entity at the state-owned Will Rogers State Beach, development or renovation of capital improvements, whether public or private, and related public access and

recreation improvements shall be exempt from any municipal demolition, grading, building, or discretionary permits required by state law or municipal building and zoning codes or from approvals by municipal agencies and shall be subject only to the approval by the County of Los Angeles and a coastal development

permit or amendment to a coastal development permit from the California Coastal Commission.

(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 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’s fees, costs, and expenses associated with that opposition or cancellation.

Amended by Stats. 1992, Ch. 1057, Sec. 2. Effective January 1, 1993.

(a)In order to assure the best possible return from concessions, the department shall periodically survey, and obtain advice and information from professional property managers regarding, the commercial rental market for public and private properties in areas where concessions exist or are expected to be authorized and compile information therefrom, and shall use that information for the purposes of Section 5080.06 and subdivision (b) of this section.
(b)Rent and other returns received from concessions shall reflect current commercial rental market conditions, except in instances when the director has determined that a particular service or facility needs to be furnished to the public and that service or facility cannot be furnished except at less than a fair market value rate of return to the state.
(c)Rental terms of concessions that operate seasonally shall reflect the seasonal characteristics of those concessions.
(d)Rent shall be paid on the basis of the higher of a flat monthly amount or a percentage of gross sales, except in those instances in which part of the compensation paid by a concessionaire consists of the value assigned to services performed by the concessionaire on behalf of the department and those services are of a type normally performed by departmental personnel.

Amended by Stats. 2015, Ch. 559, Sec. 8. (AB 549) Effective January 1, 2016.

A contract, including a contract entered into on lands operated pursuant to an agreement entered into under Article 2 (commencing with Section 5080.30), that is expected to involve a total investment or estimated annual gross sales in excess of one million dollars ($1,000,000), shall not be advertised for bid, negotiated, renegotiated, or amended in any material respect unless and until all of the following requirements have been complied with:

(a)The commission has reviewed the proposed services, facilities, and location of the concession and determined that they meet the requirements of Sections 5001.9 and 5080.03 and are compatible with the classification of the unit in which the concession

will be operated.

(b)At least 30 days advance written notice of the proposed concession has been provided by the director to the appropriate policy and fiscal committees of the Legislature and the Joint Legislative Budget Committee.
(c)The proposed concession is accompanied with documentation sufficient to enable

the commission and the Joint Legislative Budget Committee to ascertain whether the concession will conform to the requirements of this article and to evaluate fully all terms on which the concession is proposed to be let, including the rent and other returns anticipated to be received.

Added by Stats. 1982, Ch. 1487, Sec. 7. Effective September 28, 1982.

The department shall include in its annual statement on the concessions program a section setting forth all new concessions entered into during the preceding fiscal year, the terms of each contract, and the terms on which each concession was advertised for bid.

Added by Stats. 2016, Ch. 413, Sec. 5. (AB 2249) Effective January 1, 2017.

(a)(1) A concession contract awarded pursuant to Section 5080.05, 5080.16, or 5080.23 shall not provide the contracting party with a trademark or service mark interest in the name or names associated with a state park venue, or its historical, cultural, or recreational resources, and shall not serve as the basis for any legal claim that the contracting party has that interest.
(2)This subdivision does not constitute a change in, but is declaratory of, existing law.
(b)To the extent consistent with federal law, a bidder shall not be awarded a contract pursuant to Section 5080.05,

5080.16, or 5080.23 if either of the following applies:

(1)The bidder has made a legal claim or assertion to have a trademark or service mark interest in violation of subdivision (a).
(2)A court has determined that the bidder has made a legal claim or assertion to have a trademark or service mark interest in the name or names associated with a state or federal park venue, or its historical, cultural, or recreational resources, without reasonable cause and in bad faith.
(c)The department shall adopt regulations to provide a bidder who is

denied a contract award based on subdivision (b) with written notice of that denial and an opportunity to rebut the basis for the contract denial at a formal hearing.

(d)Commencing January 1, 2017, a provision of a contract or other agreement entered into pursuant to Section 5080.05, 5080.16, or 5080.23 that violates subdivision (a) shall be void and unenforceable.
(e)This section shall not be construed to impact a contracting party’s valid trademark or service mark rights that were held before the concession contract was awarded.

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