[House Report 111-604]
[From the U.S. Government Publishing Office]
111th Congress Report
HOUSE OF REPRESENTATIVES
2d Session 111-604
======================================================================
CABIN FEE ACT OF 2010
_______
September 16, 2010.--Committed to the Committee of the Whole House on
the State of the Union and ordered to be printed
_______
Mr. Rahall, from the Committee on Natural Resources, submitted the
following
R E P O R T
together with
ADDITIONAL VIEWS
[To accompany H.R. 4888]
[Including cost estimate of the Congressional Budget Office]
The Committee on Natural Resources, to whom was referred the
bill (H.R. 4888) to revise the Forest Service Recreation
Residence Program as it applies to units of the National Forest
System derived from the public domain by implementing a simple,
equitable, and predictable procedure for determining cabin user
fees, and for other purposes, having considered the same,
report favorably thereon with an amendment and recommend that
the bill as amended do pass.
The amendment is as follows:
Strike all after the enacting clause and insert the
following:
SECTION 1. SHORT TITLE; TABLE OF CONTENTS.
(a) Short Title.--This Act may be cited as the ``Cabin Fee Act of
2010''.
(b) Table of Contents.--The table of contents for this Act is as
follows:
Sec. 1. Short title; table of contents.
Sec. 2. Definitions.
Sec. 3. Cabin user fees.
Sec. 4. Cabin transfer fees.
Sec. 5. Allocation of cabin user fee and cabin transfer fee revenue.
Sec. 6. Right of appeal and judicial review.
Sec. 7. Consistency with other law and rights.
Sec. 8. Regulations.
SEC. 2. DEFINITIONS.
In this Act:
(1) Authorization.--The terms ``authorized'' and
``authorization'' refer to the issuance of a special use permit
for the use and occupancy of National Forest System land
derived from the public domain by a cabin owner under the
Recreation Residence Program.
(2) Cabin.--The term ``cabin'' means a privately built and
owned recreation residence and related improvements on National
Forest System land derived from the public domain that is
authorized for private use and occupancy and may be sold or
transferred between private parties.
(3) Cabin owner.--The term ``cabin owner'' means--
(A) a person authorized by the Secretary to use and
to occupy a cabin on National Forest System land
derived from the public domain; and
(B) a trust or an heir or assigns of such a person.
(4) Cabin transfer fee.--The term ``cabin transfer fee''
means a fee paid to the United States upon the transfer of a
cabin between private parties for money or other consideration
that also includes issuance of a new permit.
(5) Cabin user fee.--The term ``cabin user fee'' means an
annual fee paid to the United States by a cabin owner pursuant
to an authorization for the use and occupancy of a cabin on
National Forest System land derived from the public domain.
(6) Current cabin user fee.--The term ``current cabin user
fee'' means the most recent cabin user fee, which results from
an annual adjustment to the prior cabin user fee under section
3(d).
(7) Lot.--The term ``lot'' means a parcel of National Forest
System land derived from the public domain on which a person is
authorized to build, use, occupy, and maintain a cabin.
(8) National forest system land.--The term ``National Forest
System land'' is limited to National Forest System land derived
from the public domain.
(9) Recreation residence program.--The term ``Recreation
Residence Program'' means the Recreation Residence Program
established pursuant to the last paragraph under the heading
``FOREST SERVICE'' in the Act of March 4, 1915 (38 Stat. 1101,
chapter 144; 16 U.S.C. 497).
(10) Secretary.--The term ``Secretary'' means the Secretary
of Agriculture, acting through the Chief of the Forest Service.
(11) Typical lot.--The term ``typical lot'' means a cabin
lot, or group of cabin lots, in a tract that is selected for
use in an appraisal as being representative of, and that has
similar value characteristics as, other lots or groups of lots
within the tract.
SEC. 3. CABIN USER FEES.
(a) Payment of Cabin User Fees.--
(1) Annual payment.--A cabin user fee shall be paid annually
by the cabin owner.
(2) Installments.--Payment of the cabin user fee for a year
may be made in two installments.
(b) Initial Cabin User Fees.--
(1) Establishment.--The Secretary shall establish initial
cabin user fees in the manner required by this subsection.
(2) Assignment to value tiers.--Upon completion of the
current appraisal cycle, as required by paragraph (4), the
Secretary shall assign each permitted lot on National Forest
System land to one of five tiers based on the following:
(A) All appraised lot values shall be adjusted, or
normalized, for price changes from its date of value
according to the national NAHB/Wells Fargo Housing
Opportunity Index prior to tier assignment.
(B) The tiers shall be established according to
relative lot value, using all fully completed appraisal
data with lots having the lowest adjusted appraised
value assigned to Tier 1 and lots having the highest
adjusted appraised value assigned to Tier 5.
(C) The number of lots (by percentage) assigned to
each tier is specified in the table contained in
paragraph (3).
(D) Data from incomplete appraisals may not be used
to establish the fee tiers.
(E) Until assigned to a tier, permitted cabin lots,
including lots with incomplete appraisals, are assigned
an interim fee of $4000 or their current annual fee,
indexed in accordance with subsection (d), whichever is
less.
(3) Table of initial cabin user fees.--The initial cabin user
fees, based on the assignments made by the Secretary under
paragraph (2) are as follows:
------------------------------------------------------------------------
Approximate Percent of
Fee Tier Permits Nationally Fee Amount
------------------------------------------------------------------------
Tier 1 10% $500
------------------------------------------------------------------------
Tier 2 35% $1,000
------------------------------------------------------------------------
Tier 3 40% $2,000
------------------------------------------------------------------------
Tier 4 10% $3,000
------------------------------------------------------------------------
Tier 5 5% $4,000.
------------------------------------------------------------------------
(4) Deadline for completion of current appraisal cycle.--The
Secretary shall complete the current appraisal cycle within
three years after the date of the enactment of this Act.
(5) Effective date.--The initial cabin user fees required by
this subsection shall take effect beginning with the first
calendar year beginning after the completion of the current
appraisal cycle.
(c) Overpayments or Underpayments.--If, upon assignment to a tier
under subsection (b), the Secretary determines that the fee charged to
a cabin owner during the preceding three years resulted in an
overpayment or underpayment totaling more than $500, the fee for the
next three years shall be adjusted, if such a fee adjustment is
requested by the Secretary or by the affected cabin owner, as necessary
to correct the overpayment or underpayment.
(d) Annual Adjustments of Cabin User Fee.--The Secretary shall use
changes in the Implicit Price Deflator for the Gross Domestic Product
published by the Bureau of Economic Analysis of the Department of
Commerce, applied on a five-year rolling average, to determine and
apply an annual adjustment to cabin user fees.
(e) Effect of Destruction, Substantial Damage, or Loss of Access.--If
a cabin is destroyed or suffers substantial damage amounting to greater
than 50 percent of replacement cost, or if access to a cabin is
significantly impaired, whether by catastrophic events, natural causes
or governmental actions, such that the cabin is rendered unsafe or
unable to be occupied as a result, the Secretary shall reduce the cabin
user fee for the affected lot to $100 per year. This fee shall be in
effect for the remainder of the year in which the destruction occurs
and until such time as the cabin may be lawfully reoccupied and normal
access has been restored.
SEC. 4. CABIN TRANSFER FEES.
(a) Payment of Cabin Transfer Fees.--In conjunction with the transfer
of ownership of any cabin and the issuance of a new permit, the
transferor shall file with the Secretary a sworn statement declaring
the amount of money or other value received, if any, for the transfer
of the cabin. As a condition of the issuance by the Secretary of a new
authorization for the use and occupancy of the cabin, the transferor
shall pay, or cause to be paid, to the Secretary a cabin transfer fee
in an amount determined as follows:
----------------------------------------------------------------------------------------------------------------
Consideration Received by Transfer Transfer Fee Amount
----------------------------------------------------------------------------------------------------------------
$0 to $250,000 $1,000
----------------------------------------------------------------------------------------------------------------
$250,000.01 to $500,000.00 $1,000 plus 5% of consideration in excess of $250,000
up to $500,000
----------------------------------------------------------------------------------------------------------------
$500,000.01 and above $1,000 plus 5% of consideration in excess of $250,000
up to $500,000 plus 10% of consideration in excess of
$500,000.
----------------------------------------------------------------------------------------------------------------
(b) Index.--The Secretary shall use changes in the Implicit Price
Deflator for the Gross Domestic Product published by the Bureau of
Economic Analysis of the Department of Commerce, applied on a five-year
rolling average, to determine and apply an annual adjustment to the
cabin transfer fee threshold amounts ($250,000.01 and $500,000.01) set
forth in the table contained in subsection (a).
SEC. 5. ALLOCATION OF CABIN USER FEE AND CABIN TRANSFER FEE REVENUE.
(a) Retained Fees to Cover Costs.--Subject to subsection (b), the
Secretary shall retain the amount of revenue from cabin user fees and
cabin transfer fees necessary to fully cover the costs incurred by the
Forest Service to administer the Recreation Residence Program. Revenue
collected in excess of that amount shall be deposited in the Treasury.
(b) Limitation.--The total retained by the Secretary under subsection
(a) for a fiscal year may not exceed $500 per cabin. The Secretary
shall use changes in the Implicit Price Deflator for the Gross Domestic
Product published by the Bureau of Economic Analysis of the Department
of Commerce, applied on a five-year rolling average, to determine and
apply an annual adjustment to this limitation. Revenue collected from
cabin user fees and cabin transfer fees in excess of this limitation
shall be deposited in the Treasury.
SEC. 6. RIGHT OF APPEAL AND JUDICIAL REVIEW.
(a) Right of Appeal.--Notwithstanding any action of a cabin owner to
exercise rights in accordance with section 7, the Secretary shall by
regulation grant the cabin owner the right to an administrative appeal
of the determination of a new cabin user fee, fee tier, transfer fee,
or whether or not to reduce a cabin user fee under section 3(e). Such
appeal shall be pursuant to the appeal process provided under subpart C
(Appeal of Decisions Relating to Occupancy and Use of National Forest
System Lands) of part 251 of title 36, Code of Federal Regulations
(section 251.80 et seq.).
(b) Judicial Review.--A cabin owner that contests a final decision of
the Secretary under this Act may bring a civil action in United States
district court. The venue for actions brought before the United States
District Court shall be in the United States Judicial District where
the cabin is located or the permit holder resides. Nothing in this Act
precludes the parties from seeking mediation.
SEC. 7. CONSISTENCY WITH OTHER LAW AND RIGHTS.
(a) Consistency With Rights of the United States.--Nothing in this
Act limits or restricts any right, title, or interest of the United
States in or to any land or resource.
(b) Special Rule for Alaska.--In determining a cabin user fee in the
State of Alaska, the Secretary shall not establish or impose a cabin
user fee or a condition affecting a cabin user fee that is inconsistent
with 1303(d) of the Alaska National Interest Lands Conservation Act (16
U.S.C. 3193(d)).
SEC. 8. REGULATIONS.
The Secretary shall promulgate regulations to carry out this Act not
later than the December 31, 2012.
PURPOSE OF THE BILL
The purpose of H.R. 4888 is to revise the Forest Service
Recreation Residence Program as it applies to units of the
National Forest System derived from the public domain by
implementing a simple, equitable, and predictable procedure for
determining cabin user fees, and for other purposes.
BACKGROUND AND NEED FOR LEGISLATION
In 1915, Congress granted the Forest Service the authority
to set aside small parcels of land for the construction of
summer cabins with multi-year occupancy permits. The program,
known as the Recreation Residence Program, was designed to
foster opportunities for the public to build a greater
relationship with the country's national forests. Families were
responsible for building their own cabins, and they paid the
Forest Service a permit fee to occupy the land. By the mid-
1960s, the Chief of the Forest Service halted the issuance of
new permits. However, at the peak of the program, nearly 20,000
cabins existed. Today, approximately 14,000 cabins remain.
Congress has repeatedly addressed administrative problems
with the Recreation Residence Program. In 1969, Congressional
concern prompted the Forest Service to begin issuing 20-year
Special Use Permits. A system was also established for
appraising the value of each cabin lot, considering the
specific development and use restrictions, and cabin owners
were required to pay 5% of the appraised value as an annual
permit fee. In 1994, the Forest Service clarified the process
by formally publishing the Recreation Residence Policy in the
Federal Register.
Cabin owners expressed their concerns to Congress about
increases in fees and the appraisal process. As a result,
Congress enacted a specific appraisal policy with the Cabin
User Fee Fairness Act of 2000 (CUFFA). The law required the
Forest Service to use the Uniform Standards of Professional
Appraisal Practice and to use certified appraisers to determine
the value for the cabins involved in the program. The permit
fees continued to be based on 5% of the appraised value.
As the Forest Service implements CUFFA, there is a wide
range in new cabin user fees. According to the Forest Service,
75% of owners' annual fees are $4,000 or less. However,
approximately 5% of owners' annual fees are expected to exceed
$10,000 per year. These higher fees have triggered a new round
of concerns from cabin owners who claim they are unable to pay
the fees and cannot sell their cabins due to the high fees.
Currently, the Forest Service has used the CUFFA process to
determine the value of approximately half of all existing
cabins, and they expect to complete all the appraisals in the
next three years.
H.R. 4888 would establish a new system for determining
annual cabin user fees that would replace the system put in
place by CUFFA. Under the new system, the Secretary of
Agriculture would assign each permit issued to a cabin user to
one of five tiers, based on the appraisal of the cabin on the
date of enactment of this Act. The Forest Service estimates
that if CUFFA were fully implemented, the fees generated would
reach approximately $45 million, but the agency estimates that
H.R. 4888 would generate approximately $20 million less.
COMMITTEE ACTION
H.R. 4888 was introduced on March 19, 2010 by Natural
Resources Committee Ranking Member Doc Hastings (R-WA). The
bill was referred to the Committee on Natural Resources, and
within the Committee to the Subcommittee on National Parks,
Forests and Public Lands. On April 22, 2010, the Subcommittee
held a hearing on the bill at which the Department of
Agriculture welcomed the opportunity to work with the Committee
on the legislation and noted several concerns they would like
to see addressed. Specifically, the Administration would like
to see the same fee system applied to both National Forest
System lands reserved from the public domain and lands acquired
from other ownerships, the fees more accurately reflect market
value, and no new additional transfer fee.
On July 22, 2010, the Subcommittee was discharged from
further consideration of H.R. 4888 and the full Natural
Resources Committee met to consider the bill. Ranking Member
Hastings offered an amendment in the nature of a substitute to
clarify several of the definitions, allow the Forest Service to
complete the current appraisal process, and detail cabin
owners' right of appeal and judicial review. The amendment in
the nature of a substitute was agreed to by unanimous consent.
The bill, as amended, was then ordered favorably reported to
the House of Representatives by unanimous consent.
SECTION-BY-SECTION ANALYSIS
Section 1. Short title
Section 1 provides that this Act may be cited as the
``Cabin Fee Act of 2010''.
Section 2. Definitions
Section 2 defines the term ``cabin transfer fee'' as the
fee paid to the United States when a cabin is transferred
between private parties for money and includes the Forest
Service issuing a new permit. It also defines the ``cabin user
fee'' as an annual fee paid by a cabin owner for the use and
occupancy of a cabin on National Forest System land derived
from the public domain.
Section 3. Cabin user fees
Section 3(a) describes the payment of cabin user fees,
which shall be paid annually by the cabin owner and may be made
in two installments.
Section 3(b) outlines the establishment of the initial
cabin user fees. First the Secretary of Agriculture (Secretary)
must complete the current appraisal cycle as defined by the
Cabin User Fee Fairness Act of 2000, which paragraph (4) of
this subsection provides shall be completed within three years
of the date of enactment of this Act. Next, the Secretary shall
assign each cabin to one of five tiers based on several
factors. All appraisals shall be adjusted from the date of
value according to the National Association of Home Builders/
Wells Fargo Housing Opportunity Index. Then, tiers will be
established with lots having the lowest adjusted appraised
value assigned to Tier 1 and lots having the highest adjusted
appraised value assigned to Tier 5. The percentage of lots per
tier is outlined in the following chart:
------------------------------------------------------------------------
Approximate
percentage of
Fee tier permits Fee amount
nationally
------------------------------------------------------------------------
Tier 1................................ 10 $500
Tier 2................................ 35 1,000
Tier 3................................ 40 2,000
Tier 4................................ 10 3,000
Tier 5................................ 5 4,000
------------------------------------------------------------------------
Until assigned to a tier, cabin owners will pay an interim
fee of either $4000 or their current annual fee adjusted based
on the Implicit Price Deflator for the Gross Domestic Product
published by the Bureau of Economic Analysis of the Department
of Commerce, applied on a five year rolling average, whichever
is less.
Section 3(c) provides that if the Secretary determines that
the fee charged to a cabin owner during the preceding three
years resulted in an overpayment or underpayment totaling more
than $500, the fee for the next three years shall be adjusted,
if such a fee adjustment is requested by the Secretary or the
cabin owner.
Section 3(d) provides that the Secretary shall use changes
in the Implicit Price Deflator for the Gross Domestic Product
published by the Bureau of Economic Analysis of the Department
of Commerce, applied on a five-year rolling average, to
determine annual adjustments to cabin user fees.
Section 3(e) provides that if a cabin is destroyed or
suffers substantial damage, the Secretary shall reduce the
cabin user fee for the affected lot to $100 per year.
Section 4. Cabin transfer fees
Section 4(a) provides that with the transfer of ownership
of any cabin and the issuance of a new permit, the transferor
shall file with the Secretary a statement of the value
received. Based on the value, the transferor will pay or cause
to be paid a transfer fee that is $1,000 where the
consideration is $0 to $250,000, $1,000 plus 5% of
consideration in excess of $250,000 up to $500,000, or $1,000
plus 5% of consideration in excess of $250,000 up to $500,000
plus 10% of consideration in excess of $500,000.
Section 4(b) identifies the Implicit Price Deflator for the
Gross Domestic Product published by the Bureau of Economic
Analysis of the Department of Commerce, applied on a five-year
rolling average as the index the Secretary shall use to apply
an annual adjustment to the cabin transfer fee.
Section 5. Allocation of cabin user fee and cabin transfer fee revenue
Section 5(a) allows the Secretary to retain the amount of
revenue from cabin user fees and cabin transfer fees necessary
to cover the costs incurred by the Forest Service to administer
the Recreation Residence Program. The excess revenue is to be
deposited in the Treasury.
Section 5(b) limits the amount the Secretary can retain per
fiscal year from cabin user fees and cabin transfer fees to
$500 per cabin. This amount shall be adjusted based on the
Implicit Price Deflator for the Gross Domestic Product.
Section 6. Right of appeal and judicial review
Section 6(a) provides that the Secretary shall grant the
cabin owner the right to an administrative appeal of a new
cabin user fee, fee tier, transfer fee, and interim fee.
Section 6(b) provides a cabin owner that contests a final
decision of the Secretary under this Act the option of bringing
a civil action in United States district court. The venue for
the judicial review shall be in the United States Judicial
District where the cabin is located or the permit holder
resides.
Section 7. Consistency with other law and rights
Section 7(a) provides that nothing in this Act limits any
right of the United States to any land or resource.
Section 7(b) specifically references cabins located in the
State of Alaska, providing that nothing in this Act shall
establish cabin user fees that are inconsistent with the Alaska
National Interest Lands Conservation Act (16 U.S.C. 3193(d)).
Section 8. Regulations
Section 8 requires the Secretary to promulgate regulations
no later than December 31, 2012.
COMMITTEE OVERSIGHT FINDINGS AND RECOMMENDATIONS
Regarding clause 2(b)(1) of rule X and clause 3(c)(1) of
rule XIII of the Rules of the House of Representatives, the
Committee on Natural Resources' oversight findings and
recommendations are reflected in the body of this report.
CONSTITUTIONAL AUTHORITY STATEMENT
Article IV, section 3 of the Constitution of the United
States grants Congress the authority to enact this bill.
COMPLIANCE WITH HOUSE RULE XIII
1. Cost of Legislation. Clause 3(d)(2) of rule XIII of the
Rules of the House of Representatives requires an estimate and
a comparison by the Committee of the costs which would be
incurred in carrying out this bill. However, clause 3(d)(3)(B)
of that rule provides that this requirement does not apply when
the Committee has included in its report a timely submitted
cost estimate of the bill prepared by the Director of the
Congressional Budget Office under section 402 of the
Congressional Budget Act of 1974.
2. Congressional Budget Act. As required by clause 3(c)(2)
of rule XIII of the Rules of the House of Representatives and
section 308(a) of the Congressional Budget Act of 1974, this
bill does not contain any new budget authority, spending
authority, credit authority, or an increase or decrease in
revenues or tax expenditures.
3. General Performance Goals and Objectives. As required by
clause 3(c)(4) of rule XIII, the general performance goal or
objective of this bill is to revise the Forest Service
Recreation Residence Program as it applies to units of the
National Forest System derived from the public domain by
implementing a simple, equitable, and predictable procedure for
determining cabin user fees, and for other purposes.
4. Congressional Budget Office Cost Estimate. Under clause
3(c)(3) of rule XIII of the Rules of the House of
Representatives and section 403 of the Congressional Budget Act
of 1974, the Committee has received the following cost estimate
for this bill from the Director of the Congressional Budget
Office:
H.R. 4888--Cabin Fee Act of 2010
Summary: H.R. 4888 would establish a new schedule for the
fees paid to the federal government by individuals who own
cabins on certain Forest Service lands. The bill also would
authorize the Forest Service to assess a transfer fee when
affected cabins are sold. Finally, the bill would allow the
agency to retain and spend, without further appropriation,
amounts collected from such fees to cover certain
administrative costs.
Based on information from the Forest Service, CBO estimates
that implementing the legislation would increase direct
spending by $145 million over the 2011-2020 period; therefore,
pay-as-you-go procedures apply. CBO also estimates that
implementing the legislation would reduce discretionary
spending by about $70 million over that period, assuming
appropriation actions consistent with the bill's allowed use of
fees to cover administrative costs. Enacting the legislation
would not affect revenues.
H.R. 4888 contains no intergovernmental or private-sector
mandates as defined in the Unfunded Mandates Reform Act (UMRA)
and would impose no costs on state, local, or tribal
governments.
Estimated cost to the Federal Government: The estimated
budgetary impact of H.R. 4888 is shown in the following table.
The costs of this legislation fall within budget function 300
(natural resources and environment).
--------------------------------------------------------------------------------------------------------------------------------------------------------
By fiscal year, in millions of dollars--
---------------------------------------------------------------------------------------------------------------
2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2011-2015 2011-2020
--------------------------------------------------------------------------------------------------------------------------------------------------------
CHANGES IN DIRECT SPENDING
Estimated Budget Authority.............. 7 7 12 13 15 17 18 18 19 19 54 145
Estimated Outlays....................... 7 7 12 13 15 17 18 18 19 19 54 145
CHANCES IN SPENDING SUBJECT TO APPROPRIATION
Estimated Budget Authority.............. -7 -7 -7 -7 -7 -7 -7 -7 -7 -7 -35 -70
Estimated Outlays....................... -7 -7 -7 -7 -7 -7 -7 -7 -7 -7 -35 -70
--------------------------------------------------------------------------------------------------------------------------------------------------------
Note: Amounts may not sum to totals because of rounding.
Basis of estimate: For this estimate, CBO assumes that the
legislation will be enacted in 2010.
CBO estimates that implementing H.R. 4888 would increase
net direct spending by $145 million over the 2011-2020 period.
Fees collected from cabin owners by the Forest Service would be
about $75 million less than would be collected under current
law (such losses are shown as an increase in direct spending).
In addition, the agency would be allowed to spend some of the
fees collected on administrative expenses, thus increasing
direct spending by an additional $70 million over the next 10
years. CBO also estimates that implementing the legislation
could reduce discretionary spending by $70 million because the
Forest Service would no longer use appropriated funds to cover
such administrative costs.
Direct spending
Section 3 would establish a new schedule for fees assessed
on cabins that occupy certain Forest Service lands
(specifically, those lands not acquired by the federal
government from private landowners). Under current law, cabin
owners pay an annual fee to the government equal to 5 percent
of the appraised value of the occupied Forest Service land. In
2010, fees for roughly 12,500 affected cabins ranged from $30
to $11,100 per cabin. Based on information from the agency, CBO
estimates that fee collections from those cabins will total
about $21 million in 2011 and that fee collections will
increase to $36 million a year by 2020 as new appraisals of the
value of Forest Service land, which are expected to
significantly increase fees on about 40 percent of the cabins,
are completed.
Under the bill, cabin owners would pay specified annual
fees ranging from $500 to $4,000 per cabin, depending on the
appraised value of the occupied land. Those fees would go into
effect after the Forest Service completes its current appraisal
cycle, which CBO expects would occur in 2012; therefore, fees
under the bill would be the same as those under current law
over the 2011-2012 period. CBO estimates that fee collections
under the bill from the affected cabins would total about $21
million in 2013 and would reach $24 million a year by 2020.
Because fee collections from those cabins would be lower under
the bill than the fees expected to be paid under current law,
CBO estimates that enacting this provision would reduce
offsetting receipts (that is, increase direct spending) by
about $80 million over the 2013-2020 period.
Section 4 would require the Forest Service to collect a new
transfer fee from cabin owners who sell their cabins. The
amount of the fee would be based on the sales price. CBO
estimates that implementing this provision would increase
offsetting receipts (a credit against direct spending) by about
$5 million over the 2011-2020 period, based on information from
the Forest Service regarding the number of cabins sold
annually.
Section 5 would authorize the Forest Service to retain and
spend, without further appropriation, amounts collected from
cabin fees to cover the cost of administering its cabin
program. Based on information from the agency regarding the
historical costs of administering the cabin-fee program, CBO
estimates that enacting this provision would increase direct
spending by about $70 million over the 2011-2020 period.
Spending subject to appropriation
H.R. 4888 would authorize the Forest Service to retain and
spend, without further appropriation, amounts collected from
cabin fees to cover certain administrative costs. Under current
law, the Forest Service spends about $7 million annually from
discretionary appropriations to carry out those activities. If
appropriations were reduced by a similar amount in future
years, CBO estimates that implementing the legislation would
reduce discretionary spending by about $70 million over the
2011-2020 period.
Pay-as-you-go considerations: The Statutory Pay-As-You-Go
Act of 2010 establishes budget-reporting and enforcement
procedures for legislation affecting direct spending or
revenues. The net changes in outlays that are subject to those
pay-as-you-go procedures are shown in the following table.
CBO ESTIMATE OF PAY-AS-YOU-GO EFFECTS FOR H.R. 4888 AS ORDERED REPORTED BY THE HOUSE COMMITTEE ON NATURAL RESOURCES ON DATE JULY 22, 2010
--------------------------------------------------------------------------------------------------------------------------------------------------------
By fiscal year, in millions of dollars--
-------------------------------------------------------------------------------------------------------------
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2010-2015 2010-2020
--------------------------------------------------------------------------------------------------------------------------------------------------------
NET INCREASE OR DECREASE (-) IN THE DEFICIT
Statutory Pay-As-You-Go Impact............ 0 7 7 12 13 15 17 18 18 19 19 54 145
--------------------------------------------------------------------------------------------------------------------------------------------------------
Intergovernmental and private-sector impact: H.R. 4888
contains no intergovernmental or private-sector mandates as
defined in UMRA and would impose no costs on state, local, or
tribal governments.
Estimate prepared by: Federal Costs: Jeff LaFave; Impact on
State, Local, and Tribal Governments: Melissa Merrell; Impact
on the Private Sector: Amy Petz.
Estimate approved by: Theresa Gullo, Deputy Assistant
Director for Budget Analysis.
COMPLIANCE WITH PUBLIC LAW 104-4
This bill contains no unfunded mandates.
EARMARK STATEMENT
H.R. 4888 does not contain any congressional earmarks,
limited tax benefits, or limited tariff benefits as defined in
clause 9 of rule XXI.
PREEMPTION OF STATE, LOCAL OR TRIBAL LAW
This bill is not intended to preempt any State, local or
tribal law.
CHANGES IN EXISTING LAW
If enacted, this bill would make no changes in existing
law.
ADDITIONAL VIEWS OF DOC HASTINGS
The Cabin Fee Act, H.R. 4888 is critically important to the
14,000 American families who own cabins on land in our National
Forests. Unless Congress acts to bring about a course
correction, many thousands of these people will be forced to
abandon family heirloom cabins as the currently planned fee
hikes go into effect. This bill provides a legislative solution
that can head off that impending tragedy.
In drafting this bill, the goal was to create new fee
schedule that will be balanced and fair to both the cabin
owners and the Treasury. Work continues with the Congressional
Budget Office to determine what adjustments may be needed to
ensure that the bill is revenue neutral without imposing fees
that are far beyond the reach of our constituents.
Many of the private cabins on Forest Service land are
simple, rustic structures hand-built by the grandparents of the
current owners early in the last century and passed down from
generation to generation. And although there may be a few that
are large and showy, the overwhelming majority of the cabins
are modest family retreats. The purpose of this bill is to keep
the fees affordable for people such as teachers, factory
workers and retirees, not just millionaires--which is just what
will happen if we don't address the problem.
The cabin owners affected by this bill are charged an
annual fee for use of the land on which their cabin sits. They
do not get any ownership rights to the land. They have only a
temporary and highly restricted use permit for, basically, the
footprint of their cabin.
Because a temporary, limited use-permit is not comparable
to the rights acquired when someone owns property in fee
simple, it has proven impossible under current law to establish
a fair process for setting the fees charged the cabin owners.
The current system has resulted in unrealistic, arbitrary
fee hikes that are completely unaffordable for average
families. For example, the Seattle Times reported last year
that cabin owners in Lake Wenatchee received notice that their
fees will increase more than one thousand percent, from $1,400
to more than $17,000 by 2011.
Skyrocketing fees also make these part-time homes
unmarketable, leaving families who are unable to pay the high
fees also unable to sell their cabins. Unless we act to
establish a realistic pricing structure, families across our
nation may be forced to tear down their cabins because they can
neither afford the fees themselves nor find a buyer for their
cabin.
The Cabin Fee Act will establish a simple, predictable fee-
setting system based on a tiered structure. And because future
fee increases will be tied to inflation, it will eliminate the
Forest Service's costly administrative burden of constant
appraisals and appeals.
These family-owned cabins encourage wholesome outdoor
recreation which is a very important use of our vast system of
public land. Providing access to public lands is an important
part of the mission of the Forest Service, and action is needed
to make certain that recreational cabins aren't priced out of
existence. By encouraging a broad and diverse range of
activities in our National Forests, we foster the kind of sound
stewardship that allows us more fully to obtain the many
benefits these lands can contribute.
This legislation will provide a sensible, long-term
solution that will keep these cabins affordable and accessible
to Americans, while still providing fair compensation to the
federal Treasury for the use of the land.
Doc Hastings.