46 



firms making such commitments, however, is to ensure that there 

 is a reasonable amount of security in their pubhc lands investment. 

 If such assurance is not given, we believe that eventually there will 

 be a deterioration in the level of certain products and services. 



To ensure an atmosphere conducive to healthy, productive, long- 

 term relationships between the public and private sectors, we rec- 

 ommend four guidelines. We believe these guidelines are met very 

 well in H.R. 2028. First, that there should be an incentive to best 

 serve the public. A fair rating system should be established, one 

 which accurately measures the competence of the service provider. 



Second, we believe there should be reasonable provisions for con- 

 tract terms to help concessioners have enough time to grow a suc- 

 cessful business and capitalize their investments. With regard to 

 the third item, approval for sale, we think that at the time of sale 

 or other transfer of operations to a new operator, there should be 

 a timely and fair way to gain approval of the Secretary of the Inte- 

 rior for the transfer. Fourth, competition. The system should allow 

 competition, but preference should be given to those who can best 

 serve the public as demonstrated by their performance record. 



It seems to us, again, that of the concessions reform bills now 

 being considered, only one, H.R. 2028, satisfies all of these four 

 guidelines and is conducive to a fair and cooperative relationship 

 between the government and this nation's concessioners. This bill 

 promotes public-private partnerships and deals positively with the 

 park concessioners and their needs. It also treats concession fees 

 in an intelligent way, containing the mechanisms needed to bring 

 about a fair return to the government while still maintaining a rea- 

 sonable margin of profit for the concessioner. 



This bill should be supported for, as I hope we have illustrated 

 here, the park concessioner is an integral part of the public lands 

 experience and a critical ingredient for the local economic develop- 

 ment supported by the parks and other public lands. 



Mr. Hansen. Thank you, Mr. King. Mr. Senior. 



STATEMENT OF DAVID SENIOR, BANK OF AMERICA, LAS 

 VEGAS, NEVADA 



Mr. Senior. Thank you, Mr. Chairman. It is a pleasure to be 

 able to be here to testify as a lender on behalf of a lender. My 

 name is David Senior. I am a vice president with Bank of America 

 in Las Vegas, Nevada. I have been with the bank's commercial 

 banking division for a little over two years in Nevada and have 

 been primarily assigned to develop and underwrite lending oppor- 

 tunities to the middle market. As such, I am familiar with the 

 lending policies of the bank and its procedures in making business 

 loans. 



The bank's attention was drawn to this hearing on the subject 

 of concessions policies for Federal public land agencies because the 

 bank has had in the past and continues to have a number of busi- 

 ness customers who are concessioners doing business in public land 

 areas. 



The bank's purpose in testifying is to discuss the primary issues 

 of possessory interest, tenor of concession contracts, and pref- 

 erential right of renewal, and how these issues impact a conces- 



