(a) Definitions
  (1) State historic site: A state owned historic property under the management control of the Commission.
  (2) Concessions: Those services and accommodations offered to the public at state historic sites for which charges, fees, admissions, or similar assessments are collected, excluding historic sites admissions and facilities use fees.
  (3) Concessioner: Any person, partnership, or corporation granted leased concession rights or privileges at a state historic site.
  (4) Franchise fee: The annual fee or percentage of gross receipts a concessioner pays to the Commission for state historic site concession rights or privileges.
  (5) Leased concessions: Rights or privileges granted by the Commission to any individual, partnership, or corporation to provide visitor services and accommodations for profit within the boundaries of a state historic site property.
  (6) Visitor services: Contracted service to operate a facility, program, retail store, food service, event, rental program and any other public service to address the public's use and enjoyment.
  (7) Accommodation: Contracted services to operate lodging, camping, RV park or other like overnight programming addressing the public's use and enjoyment.
  (8) Incidents: Any occurrence and or site condition impacting the health and safety of the staff and public.
(b) General Requirements
  (1) Visitor services and accommodations may be operated by concessioner under contractual arrangements with the Commission. Concessions are provided for public use and enjoyment and is in line with the mission of the Commission meeting its educational and preservation objectives.
  (2) A concessioner may be permitted the use of buildings, structures, and site improvements in accordance with the terms of the contract and provided they assume full responsibility for the maintenance and repair due to wear and tear during their period of use.
  (3) The executive director, subject to the provisions of commission policy, shall take such action as may be appropriate to encourage or enable the use of private funding investment to provide visitor services and accommodations necessary for the full enjoyment of state historic sites properties administered by the Commission.
(c) Concessioner Selection
  (1) The solicitation, recruitment and selection of concessioners within state historic sites shall be accomplished in a manner appropriate for the scale of the investment and term of the business opportunity ensuring that the selection process is fair and equitable and in compliance with all applicable contracting and purchasing laws.
  (2) A concessioner will be selected with great care to ensure that the concessioner can successfully operate the concession in compliance with the contract between the concessioner and the Commission.
  (3) The granting, termination, amendment, transfer, assignment, and enforcement of all leased concession contract requirements and provisions of such contracts is delegated to the executive director, or his delegee.
  (4) Site managers may select vendor services (food trucks, popup retail, markets, etc.) for special events and weekends to enhance public amenities during these limited periods of time in accordance with state contracting and purchasing laws. These will be approved by the director of historic sites operations and authorized utilizing a revocable temporary contract which may be executed by the deputy executive director of historic sites.
(d) Types of Concession Contracts
  (1) A long-term concession contract over a 1-year period will be used to grant major concession rights and privileges when the concessioner is required to make sizable investments over $5,000 in merchandise inventories, equipment or furnishings, tenant finish, or maintenance or repair to state-owned facilities.
  (2) A revocable short-term contract under a 1-year period shall be used to grant concession privileges when warranted by the scope and size of the concession and as allowed by state contracting and purchasing laws. Examples include merchandise vending machines, coin operated machines, equipment rental, and other miscellaneous services or accommodations deemed appropriate for the state historic site by the deputy executive director of historic sites. An announcement concerning the availability of concession services may not be issued, with a vendor directly selected for weekend and other limited seasonal concessions where no state payment is provided or state payment to any vendor is under $5000.
  (3) A revocable temporary contract may be used when allowed by state contracting and purchasing laws and when deemed necessary to address business objectives for special event services and programs, provide interim services, or during a test period to determine the feasibility for adding a new concession to a state historic site.
(e) Contract Terms
  (1) All contracts shall be executed for a short or long-term contract commensurate with the size of the total investment required from the concessioner. The duration of the contract shall be set for a period to allow for a reasonable opportunity for the concessioner to achieve a return on their investment.
  (2) The penalties and interest assessed for delinquent franchise fees shall be stated in the contract but may not exceed the penalties and interest rate established in the Texas Tax Code §111.060 and §111.061.
  (3) Penalties and/or interest under this section may be waived by the executive director or designee for good cause.
  (4) The rates and charges prescribed by the concessioner shall be subject to the approval of the executive director or designee. The reasonableness of the concessioner's rates and charges to the public shall be judged primarily by comparing with current charges for facilities and services of comparable character under similar conditions. Consideration shall be given to factors deemed relevant to the type of concession, location, and business conditions.
(f) Franchise Fee Rates and Charges
  (1) Franchise fee rates shall be determined by the executive director or his designee in an equitable and fair manner, considering the various types of operations, gross receipts, net profit, and capital invested. Single or multiple percentages applied to all or various kinds of gross receipts may be considered in new or amended contracts.
  (2) A penalty of 5.0% of the franchise fee due shall be imposed on a leased concessionaire who fails to pay the fee as required under the signed contractual agreement, and if that person fails to pay the fee within 30 days after the day when the fee is assessed, an additional 5.0% penalty shall be imposed.
  (3) Delinquent fees accrue interest beginning on the 61st day after their due date.
  (4) The yearly interest on all delinquent franchise fees is the prime rate plus one per cent, as published in the Wall Street Journal on the first day of the calendar year that is not a Saturday, Sunday or a legal holiday.
  (5) The penalties and interest assessed may not exceed the penalties and interest rate established in the Texas Tax Code §111.060 and §111.061.
  (6) Penalties and/or interest under this section may be waived by the executive director for a good cause.
  (7) The rates and charges established by the concessioner shall be subject to the approval of the executive director or his designee. The reasonableness of the concessioner's rates and charges to the public shall be judged primarily by comparing with other like businesses and services, uniformity with other state historic sites, current market charges for facilities and services of comparable business under like conditions. Consideration shall be given to factors deemed relevant to the type of concession, location, term and business type provided.
(g) Reporting
  (1) Concessioners shall submit reports as timed and directed in the contact and keep business records in good order as to allow the executive director to audit and determine that all terms and conditions of the concession contract have been and are being faithfully performed.
  (2) The state auditor, or duly authorized representative of the agency, shall, for audit and examination, have access to all records and other books, documents, statements and papers of the concessioner pertinent to the contract.
  (3) All incidents occurring on a state historic site will be reported to the appropriate site manager or designated state property representative. Incident reports are required to be generated within 24 hours of the event and will be shared with the State Office of Risk Management.
(h) Bond and Insurance
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