[Senate Report 113-171]
[From the U.S. Government Publishing Office]
Calendar No. 397
113th Congress } { Report
SENATE
2d Session } { 113-171
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CABIN FEES
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May 22, 2014.--Ordered to be printed
_______
Ms. Landrieu, from the Committee on Energy and Natural Resources,
submitted the following
R E P O R T
[To accompany S. 1341]
The Committee on Energy and Natural Resources, to which was
referred the bill (S. 1341) to modify the Forest Service
Recreation Residence Program as the program 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, reports favorably thereon with an
amendment and an amendment to the title and recommends that the
bill, as amended, do pass.
The amendments are as follows:
1. On page 2, line 14, strike ``Until'' and insert ``During
the period beginning on January 1, 2014, and ending on''.
2. Amend the title so as to read: ``A bill to modify the
Forest Service recreation residence program to implement a
simple, equitable, and predictable procedure for determining
cabin user fees, and for other purposes.''.
Purpose
The purpose of S. 1341 is to establish new rates for
recreation residence permits on National Forest System lands.
Background and Need
In 1915 the Forest Service began issuing permits for
individuals to build cabins on National Forest System lands
under a Recreation Residence program. This program generally
authorized permits for terms of up to 20 years at a nominal
fee. Although there was initially relatively little
recreational use on national forests, over the years use of
forest lands for recreation residences became highly prized,
and by the 1950s the Forest Service was directed to charge
permit fees approaching fair market value.
With increasing development of similar lands for ski
resorts and forest and lake communities, the comparable values
for these permits increased dramatically, occasionally
resulting in large fee increases for recreation residence
permits. In response to the controversy resulting from large
proposed fee increases, Congress several times included fee
moratoriums as part of the Forest Service's annual
appropriations bill.
In an effort to resolve the permit fee valuation issue, in
2000 Congress enacted the Cabin User Fee Fairness Act (CUFFA)
as an amendment to the Interior and Related Agencies
Appropriations Act (title VI of Public Law 106-291). The
provisions of CUFFA were in large part developed based on input
from recreation residence permit holders. The law's purpose was
to ensure that the National Forest System Residence Program
continued to preserve recreational opportunities for cabin
owners and users.
CUFFA established guidelines for the appraisal process,
based on a percentage of the fair market value of the public
land. Although the Act was enacted in response to complaints by
cabin owners of unreasonably high and unpredictable permit
fees, the controversy over appropriate fee levels has
continued. Some public lands have a significantly higher market
value due to their proximity to the recreational opportunities
available on public lands, so the value of those cabin permits
increased significantly. Other permit holders faced large fee
increase when out-of-date appraisals were finally updated
reflecting new and often times much higher values. According to
the Forest Service, of the 14,000 cabins that are currently
permitted, only 8,000 have had a recent appraisal.
S. 1341 would establish a new fee system for recreation
residence permits, comprised of an eleven-tier fee system with
a specified permit fee for each tier, indexed for inflation.
Each permit would be allocated to a specific tier based on the
value of the underlying land relative to other permits.
Legislative History
S. 1341 was introduced by Senator Tester and others on July
23, 2013. The Subcommittee on Public Lands, Forests, and Mining
held a hearing on S. 1341 on November 20, 2013. At its business
meeting on December 19, 2013, the Committee ordered the measure
favorably reported.
Representative Hastings introduced similar legislation,
H.R. 1159, in the House of Representatives on March 14, 2013.
The House Committee on Natural Resources ordered the bill
reported on March 20, 2013.
Senator Tester introduced similar legislation in the 112th
Congress, S. 1906. The Subcommittee on Public Lands and Forests
held a hearing on March 22, 2012 (S. Hrg. 112-642).
Committee Recommendation
The Senate Committee on Energy and Natural Resources, in
open business session on December 19, 2013, by a voice vote of
a quorum present, recommends that the Senate pass S. 1341, if
amended as described herein.
Committee Amendments
During its consideration of S. 1341, the Committee adopted
an amendment and an amendment to the title. The amendment
concerns the interim fee established under section 2. That
section provides that the interim fee shall be charged until
the current appraisal cycle for recreational residences is
completed. The amendment makes the interim fee effective
January 1, 2014, and staying in effect until the appraisal
cycle is completed.
The Committee also adopted an amendment to the title to
clarify that the bill applies to the entire Forest Service
recreation residence program, and not just on National Forests
derived from the public domain.
Section-by-Section Analysis
Section 1 contains the short title, the ``Cabin Fee Act of
2013.''
Section 2(a) directs the Secretary of Agriculture
(Secretary) to establish a fee in accordance with this section
for the issuance of a special use permit for the use and
occupancy of recreational residences on National Forest lands.
Subsection (b) requires the Secretary to complete the
current appraisal cycle for recreational residences required
under the Cabin User Fees Fairness Act of 2000 (CUFFA) no later
than 2 years after the date of enactment of this Act.
Subsection (c) provides that the Secretary shall assess an
interim fee for recreational residences on National Forest
lands beginning on January 1, 2014 and ending on the date on
which the current appraisal cycle is completed under subsection
(b). The interim fee is to be equal to the lesser of the
determined under CUFFA (with any annual fee increase limited to
not more than 25 percent), or $5,500.
Subsection (d)(1) requires the Secretary to make a one-time
adjustment to the value of each appraised recreational
residence lot to reflect any change in value occurring after
the date of the most recent appraisal. The adjustment is to
take place upon the completion of the current appraisal cycle
and shall be adjusted in accordance with the 4th quarter 2012
National Association of Homebuilders/Wells Fargo Housing
Opportunity Index.
Paragraph (2) authorizes a recreational residence permittee
to arrange for a second appraisal of a recreational residence
lot, so long as the appraisal is conducted in accordance with
applicable Federal standards. The value established by a second
appraisal shall be the value assigned to the lot for purposes
of fee calculation.
Subsection (e)(1) contains the table establishing fees for
recreational residences on National Forest lands which will
become effective after the lot values have been adjusted in
accordance with subsection (d). The table contains 11 fee
tiers, with annual fees ranging between $500 and $5,500. Each
fee tier includes a specified percentage of recreational
residence permits, as identified in the table.
Paragraph (2) provides that annual increases or decreases
in the fee shall be determined in accordance with changes in
the Implicit Price Deflator for the Gross Domestic Product
published by the Bureau of Economic Analysis, applied on a 5-
year rolling average.
Paragraph (3) states that the Secretary may suspend or
reduce the annual fee if access to, or occupancy of a
recreational residence is significantly restricted, and that a
decision by the Secretary to suspend or reduce the fee may be
appealed.
Subsection (f) requires the Secretary to submit to the
Senate and House authorizing committees a report analyzing the
annual fees to ensure that the they reflect fair value for the
use of the land for recreational residence purposes, taking
into account all use limitations and restrictions. The report
is to be submitted 10 years after the date of enactment of this
Act, and shall include any recommendations of the Secretary
with respect to modifying the fee system.
Section 3 establishes a new $1,200 fee for the issuance of
a new recreational residence permit due to a change of
ownership. The Secretary shall adjust the fee annually in the
same manner as the annual recreation residence fees are
adjusted.
Section 4(a) clarifies that nothing in this Act limits or
restricts and right, title, or interest of the United States in
or to any land or resource in the National Forest System.
Subsection (b) prohibits the Secretary from establishing or
imposing a fee or condition under this Act for permits in
Alaska that is inconsistent with section 1303(d) of the Alaska
National Interest Lands Conservation Act (16 U.S.C. 3193(d)).
That provision provides for the renewal or continuation of
valid leases or permits in effect on December 2, 1980, for
cabins, homesites, or similar structures on Federal lands in
Alaska.
Section 5 authorizes the Forest Service to retain any fees
collected under this Act beginning on October 1, 2023, and to
expend them, without further appropriation, to administer the
recreational residence program and other recreation programs
carried out on National Forest System land.
Section 6 repeals CUFFA effective on the date of the
assessment of annual permit fees in accordance with section
2(e), as certified to Congress by the Secretary.
Cost and Budgetary Considerations
The following estimate of costs of this measure has been
provided by the Congressional Budget Office:
S. 1341--Cabin Fee Act of 2013
Summary: S. 1341 would establish a new schedule for the
fees paid to the federal government by individuals who own
cabins located on Forest Service lands. The bill also would
authorize the Forest Service to spend, without further
appropriations, receipts from cabin fees after 2023. Finally,
the bill would establish a fee that would be assessed on
individuals who transfer ownership of their cabins. Based on
information provided by the Forest Service, CBO estimates that
enacting the legislation would increase net direct spending by
$71 million over the 2015-2024 period; therefore, pay-as-you-go
procedures apply. Enacting S. 1341 would not affect revenues.
S. 1341 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 S. 1341 is shown in the following table.
The costs of this legislation fall within budget function 300
(natural resources and environment).
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By fiscal year, in millions of dollars--
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2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2015-2019 2015-2024
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CHANGES IN DIRECT SPENDINGReduction in Cabin Fees:
Estimated Budget Authoritya............................... 7 4 4 4 4 4 4 5 5 5 23 46
Estimated Outlays......................................... 7 4 4 4 4 4 4 5 5 5 23 46
Administrative Costs:
Estimated Budget Authority................................ 0 0 0 0 0 0 0 0 0 31 0 31
Estimated Outlays......................................... 0 0 0 0 0 0 0 0 0 31 0 31
Cabin Transfer Fee:
Estimated Budget Authority................................ * * * -1 -1 -1 -1 -1 -1 -1 -2 -5
Estimated Outlays......................................... * * * -1 -1 -1 -1 -1 -1 -1 -2 -5
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Total Changes:
Estimated Budget Authority................................ 7 3 4 4 4 4 4 4 4 35 20 71
Estimated Outlays......................................... 7 3 4 4 4 4 4 4 4 35 20 71
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Notes: Amounts may not sum to totals because of rounding; *= between $0 and -$500,000.
aBecause the fees already paid by some cabin owners for 2014 would exceed the amounts that would be owed in that year under the bill, CBO expects that
the Forest Service would provide refunds to those cabin owners in 2015.
Basis of Estimate: For this estimate, CBO assumes that the
legislation will be enacted in 2014.
CBO estimates that enacting S. 1341 would increase net
direct spending by $71 million over the 2015-2024 period. Over
that period, fees collected from cabin owners by the Forest
Service would total $46 million less than would be collected
under current law (such losses are shown as an increase in
direct spending). In addition, direct spending for
administrative costs would increase by about $31 million in
2024. Finally, proceeds from the cabin transfer fee required
under S. 1341 would increase receipts (thus reducing direct
spending) by $5 million over the 2015-2024 period.
Reduction in Cabin Fees
S. 1341 would establish a new schedule for fees assessed on
cabins located on Forest Service lands. Under current law,
owners of the roughly 14,000 affected cabins pay an annual fee
to the federal government equal to 5 percent of the appraised
value of the occupied land. Based on information provided by
the agency, CBO estimates that fee collections from those
cabins will total $29 million in 2014 and that those
collections will increase to about $36 million a year by 2024.
Collections will increase over that period as the agency
completes appraisals of the affected Forest Service lands,
implements new fees based on those appraisals, and annually
adjusts fees on all cabins to account for inflation.
Under the new fee schedule that would be established by the
bill, cabin owners would pay an annual fee per cabin of at
least $500 plus an additional amount that would depend on the
appraised value of the occupied land and the maximum fee set by
the Forest Service (which could not exceed $5,500). CBO expects
that those fees would go into effect in 2017, after the Forest
Service has completed all of the appraisals required under the
bill. Once implemented, CBO estimates that new cabin fee
collections would total $27 million in 2017 and would reach $31
million by 2024.
Under S. 1341, the fees paid by cabin owners would increase
more slowly over the 2014-2016 period than they would under
current law. In addition, CBO expects that under the
legislation, the Forest Service would set a maximum fee of less
than $5,500 per cabin beginning in 2017. As a result, CBO
estimates that, on average, cabin owners would pay about $400
less in fees per cabin under the bill than they would under
current law over the 2014-2024 period. That estimate
incorporates an adjustment for inflation and CBO's estimate
that some cabins would be abandoned under current law because
of higher cabin fees. In total, CBO estimates that implementing
this provision would reduce offsetting receipts by $46 million
over the 2015-2024 period.
Administrative Costs
The bill would authorize the Forest Service to spend,
without further appropriations, receipts from cabin fees
collected after 2023. The agency would use those amounts to
cover the costs of administering recreation programs in
National Forests. Because receipts from cabin fees cannot be
spent without further appropriation under current law, CBO
estimates that enacting this provision would increase direct
spending by $31 million in 2024.
Cabin Transfer Fees
S. 1341 would require the Forest Service to collect a fee
of $1,200 from cabin owners who transfer ownership of their
cabins. That fee would be adjusted annually to account for
inflation. CBO estimates that enacting this provision would
increase offsetting receipts, which are treated as reductions
in direct spending, by $5 million over the 2015-2024 period,
based on information provided by the Forest Service regarding
the number of permits issued to new owners each year.
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 S. 1341 AS ORDERED REPORTED BY THE SENATE COMMITTEE ON ENERGY AND NATURAL RESOURCES ON DECEMBER 19, 2013
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By fiscal year, in millions of dollars--
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2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2014-2019 2014-2024
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NET INCREASE OR DECREASE (-) IN THE DEFICITStatutory Pay-As-You-Go Impact...................... 0 7 3 4 4 4 4 4 4 4 35 20 71
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Intergovernmental and private-sector impact: S. 1341
contains no intergovernmental or private-sector mandates as
defined in UMRA and would impose no costs on state, local, or
tribal governments.
Previous CBO estimates: On April 5, 2013, CBO transmitted a
cost estimate for H.R. 1159, the Cabin Fee Act of 2013, as
ordered reported by the House Committee on Natural Resources on
March 20, 2013. The Senate bill would require additional
appraisals to be conducted following the completion of the
ongoing appraisal cycle and would allow the Forest Service
flexibility in establishing a new maximum fee for cabins. In
addition, under S. 1341, the cabin transfer fee would be
adjusted for inflation and affect more cabin owners. Finally,
the cost estimate for S. 1341 incorporates new information
provided by the agency regarding the appraised values of all
cabins located on Forest Service lands. Those differences are
reflected in the cost estimates for the two bills.
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.
Regulatory Impact Evaluation
In compliance with paragraph 11(b) of rule XXVI of the
Standing Rules of the Senate, the Committee makes the following
evaluation of the regulatory impact which would be incurred in
carrying out S. 1341.
The bill would directly affect approximately 14,000 holders
of recreation residence permits on National Forest System
lands. However, the bill is not a regulatory measure in the
sense of imposing Government-established standards or
significant economic responsibilities on private individuals
and businesses. The Department of Agriculture has identified
the cost of administering the recreation residence program, and
the cost of conducting appraisals of cabin lots required under
current law in particular, as a significant financial burden on
the agency. S. 1341 will significantly reduce that burden by
eliminating the need for periodic appraisals.
No personal information would be collected in administering
the program. Therefore, there would be no impact on personal
privacy.
Little, if any, additional paperwork would result from the
enactment of S. 1341, as ordered reported.
Congressionally Directed Spending
S. 1341, as reported, does not contain any congressionally
directed spending items, limited tax benefits, or limited
tariff benefits as defined in rule XLIV of the Standing Rules
of the Senate.
Executive Communications
The testimony provided by Forest Service at the November
20, 2013, Subcommittee on Public Lands, Forests, and Mining
hearing on S. 1341 follows:
Statement of Leslie A. C. Weldon, Deputy Chief, National Forest System,
Forest Service, Department of Agriculture
Chairman Manchin, Ranking Member Barrasso and members of
the Subcommittee, thank you for the opportunity to appear
before you today to provide the Department of Agriculture's
views on S. 1341, the Cabin Fee Act of 2013.
The Department supports S. 1341.
In the early part of the twentieth century, the Forest
Service began introducing Americans to the beauty and grandeur
of their National Forests. One way to accomplish this objective
was to permit individuals to build cabins for summertime
occupancy and use within the National Forests. Cabin owners
were permitted to occupy and use National Forest System (NFS)
lands during the summer months in exchange for a fee. In 1915,
the agency began to issue permits of up to twenty years for
occupancy and use of NFS land. At that time, there was
relatively little recreational use of the National Forests.
Today, the National Forests host over 175 million visitors per
year. When this recreational cabin program began, there was
limited interest in building and owning a remote cabin on NFS
land. In the early years, fees were nominal, but since the
1950s, the Forest Service has been mandated to obtain fees
approximating market value for the occupancy and use of NFS
land. Increasing fees have led to controversy and have resulted
in enactment of multiple fee moratoriums and caps over the
years. The current law (Public Law 106-291, the Cabin Use Fee
Fairness Act of 2000 (CUFFA)) was the last attempt to achieve
an equitable fee for the use of National Forest System land.
CUFFA prescribes parameters for the appraisal process and
the fees are based on five percent of the appraised market
value of the lot under permit adjusted annually for inflation.
The agency began the appraisal process pursuant to CUFFA in
2007, and is continuing that effort presently. As cabin lot
permitees received notice of the new fees, some have
experienced substantial increases because the old fees were
based on appraisals completed ten to thirty years ago. In
response, Congress included appropriations language for
calendar year (CY) 2010 which limited fee increases to no more
than 25% of the fee paid in calendar year 2009. For CY 2011
Recreation Residences fees were held at the fee paid the
previous year (CY 2010) however, the 2011 fee was adjusted for
inflation. For CY 2012 Recreation Residence fees that were
subject to a new base fee resulting from an appraisal in either
CY 2011 or CY 2012 were implemented and limited to a 25%
increase over the amount billed in CY 2011. If the new base fee
to be implemented did not exceed 125% of the fee paid in CY
2011, the fee was fully implemented. Recreation residence fees
that were not subject to first year implementation of a new
base fee were subject to the annual index. For CY 2013, the
Agency issued bills pursuant to the annual fee determined under
CUFFA for those recreation residence lots that had current
appraisals implemented after an administrative appeal review.
If the appraisal for a recreation residence lot was not
completed or the subject of an administrative appeal for CY
2013, then the CY 13 annual fee was based upon the previous
year's fee adjusted for inflation.
S. 1341 the Cabin Fee Act of 2013 would replace CUFFA on
National Forest System lands and revise the procedures for
determining the amount the holder of a Special Use Permit for a
private cabin on the National Forests must pay to occupy and
use the underlying public property. The bill would require the
agency to place cabin lot values in eleven categories based on
an appraisal and complete remaining appraisals within two years
of enactment. It would create eleven tiers or categories
ranging from $500.00 to $5,500.00 annually and provide for an
additional payment on the sale or transfer of the cabin. The
Department appreciates the addition of the tenth and eleventh
tiers which helps to close the gap between annual fees and
market value. However, to further close the gap between annual
fees and market value, the Department would like to discuss
with the Committee a graduated transfer fee that better
reflects the value of the fee tiers.
During the transition from CUFFA to the Cabin Fee Act the
Secretary would be required to assess an interim annual fee for
recreational residences on National Forest System lands. The
interim fee amount must be equal to the lesser of the fee
determined under CUFFA, subject to the requirement that any
increase over the fee assessed during the previous year shall
be limited to not more that 25% or $5,500.00, which is the
scheduled amount for tier 11. This provision of the Cabin Fee
Act would ensure that Recreational Residence permit holders
would have some protection from steeply escalating annual
permit fees.
The Bill would require an annually adjustable transfer fee
of $1,200.00 for the issuance of a new recreational residence
lot permit due to a change of ownership of the recreational
residence. The Bill requires the Secretary to annually increase
or decrease the transfer fee, based on the Implicit Price
Deflator of the Gross Domestic Product, applied on a rolling 5-
year average. This provision would ensure that the United
States would be able to collect a flat fee for transferring a
Recreational Residence lot permit.
The cost of administration for the Recreational Residence
Program pursuant to CUFFA is a significant financial burden for
the agency. Based on a recent study in California (US Forest
Service, Region 5), the Agency estimates the cost of
administration is from $500 to $700 per cabin lot, along with
recurring appraisal costs that can approach $1 million per
year. The study showed that the administration of this program
accounts for some fifteen percent of this Region's total
recreation budget. While there are some 14,000 cabin lot
permitees, there are 175 million visitors to the National
Forests each year. S. 1341 would reduce the administrative
burden by eliminating the requirements for reappraisals not
less than every 10 years while applying the savings to provide
for a quality recreational experience with continued protection
of the environment for all who use the National Forests.
The Department wishes to clarify the purpose of the bill
which refers to lands ``derived from the public domain,'' and
the bill text refers to National Forest System lands. We would
request that the bill purpose be changed to reflect the bill
text so that it is clear that this legislation applies to all
National Forest System land; that is acquired lands and lands
reserved from the public domain.
The Forest Service recognizes that there are helpful
reforms in this bill over the current Public Law (106-291).
From an administrative perspective, this bill would reduce the
agency's re-appraisal costs while providing resources to manage
the program in the long term. For the Recreational Residence
permit holders, it would provide certainty for cabin fees.
In closing, the Department supports S. 1341 and appreciates
the opportunity to work with the bill's sponsor and the
Committee's staff to develop legislation that will benefit
taxpayers, cabin owners, and other users of the National
Forests and Grasslands, and which can be administered without
undue burden on the agency.
This concludes my statement and I would be happy to answer
any questions you may have.
Changes in Existing Law
In compliance with paragraph 12 of rule XXVI of the
Standing Rules of the Senate, changes in existing law made by
the bill S. 1341, as ordered reported, are shown as follows
(existing law proposed to be omitted is enclosed in black
brackets, new matter is printed in italic, existing law in
which no change is proposed is shown in roman):
CABIN USER FEES FAIRNESS ACT OF 2000
Title VI of the Department of the Interior and Related Agencies
Appropriations Act, 2001
Public Law 106-291
[TITLE VI--USER FEES UNDER FOREST SYSTEM RECREATION RESIDENCE PROGRAM
[SEC. 601. SHORT TITLE.
[This title may be cited as the ``Cabin User Fee Fairness
Act of 2000''.
[SEC. 602. FINDINGS.
[Congress finds that--
[(1) cabins located on forest land have provided a
unique recreation experience to a large number of cabin
owners, their families, and guests each year since
Congress authorized the recreation residence program in
1915; and
[(2) the fact that current appraisal procedures have,
in certain circumstances, been inconsistently applied
in determining fair market values for residential lots
demonstrates that problems exist in accurately
reflecting market values.
[SEC. 603. PURPOSES.
[The purposes of this title are--
[(1) to ensure, to the maximum extent practicable,
that the National Forest System recreation residence
program is managed to preserve the opportunity for
individual and family-oriented recreation; and
[(2) to develop and implement a more consistent
procedure for determining cabin user fees, taking into
consideration the limitations of an authorization and
other relevant market factors.
[SEC. 604. DEFINITIONS.
[In this title:
[(1) Agency.--The term ``agency'' means the Forest
Service.
[(2) Authorization.--The term ``authorization'' means
a special use permit for the use and occupancy of
National Forest System land by a cabin owner under the
authority of the program.
[(3) Base cabin user fee.--The term ``base cabin user
fee'' means the fee for an authorization that results
from the appraisal of a lot as determined in accordance
with sections 606 and 607.
[(4) Cabin.--The term ``cabin'' means a privately
built and owned recreation residence that is authorized
for use and occupancy on National Forest System land.
[(5) Cabin owner.--The term ``cabin owner'' means--
[(A) a person authorized by the agency to use
and to occupy a cabin on National Forest System
land; and
[(B) an heir or assign of such a person.
[(6) Cabin user fee.--The term ``cabin user fee''
means a special use fee paid annually by a cabin owner
to the Secretary in accordance with this title.
[(7) Caretaker cabin.--The term ``caretaker cabin''
means a caretaker residence occupied in limited cases
in which caretaker services are necessary to maintain
the security of a tract.
[(8) Current cabin user fee.--The term ``current
cabin user fee'' means the most recent cabin user fee
that results from an annual adjustment to the base
cabin user fee in accordance with section 608.
[(9) Lot.--The term ``lot'' means a parcel of land in
the National Forest System--
[(A) on which a cabin owner is authorized to
build, use, occupy, and maintain a cabin and
related improvements; and
[(B) that is considered to be in its natural,
native state at the time at which a use of the
lot described in subparagraph (A) is first
permitted by the Secretary.
[(10) Natural, native state.--The term ``natural,
native state'' means the condition of a lot or site,
free of any improvements, at the time at which the lot
or site is first authorized for recreation residence
use by the agency.
[(11) Program.--The term ``program'' means the
recreation residence program established under the
authority of 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).
[(12) Secretary.--The term ``Secretary'' means the
Secretary of Agriculture, acting through the Chief of
the Forest Service.
[(13) Tract.--The term ``tract'' means an established
location within a National Forest containing 1 or more
cabins authorized in accordance with the program.
[(14) Tract association.--The term ``tract
association'' means a cabin owner association in which
all cabin owners within a tract are eligible for
membership.
[(15) Typical lot.--The term ``typical lot'' means a
cabin lot, or a 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. 605. ADMINISTRATION OF RECREATION RESIDENCE PROGRAM.
[The Secretary shall ensure, to the maximum extent
practicable, that the basis and procedure for calculating cabin
user fees results in a fee for an authorization that reflects,
in accordance with this title--
[(1) the market value of a lot; and
[(2) regional and local economic influences.
[SEC. 606. APPRAISALS.
[(a) Requirements for Conducting Appraisals.--In
implementing and conducting an appraisal process for
determining cabin user fees, the Secretary shall--
[(1) complete an inventory of improvements that were
paid for by--
[(A) the agency;
[(B) third parties; or
[(C) cabin owners (or predecessors of cabin
owners),
during the completion of which the Secretary shall
presume that a cabin owner, or a predecessor of the
owner, has paid for the capital costs of any utility,
access, or facility serving the lot being appraised,
unless the Forest Service produces evidence that the
agency or a third party has paid for the capital costs;
[(2) establish an appraisal process to determine the
market value of the fee simple estate of a typical lot
or lots considered to be in a natural, native state,
subject to subsection (b)(4)(A);
[(3) enter into a contract with an appropriate
professional appraisal organization to manage the
development of specific appraisal guidelines in
accordance with subsection (b), subject to public
comment and congressional review;
[(4) require that an appraisal be performed by a
State-certified general real estate appraiser, selected
by the Secretary and licensed to practice in the State
in which the lot is located;
[(5) provide the appraiser with appraisal guidelines
developed in accordance with this title;
[(6) notwithstanding any other provision of law,
require the appraiser to coordinate the appraisal
closely with affected parties by seeking information,
cooperation, and advice from cabin owners and tract
associations;
[(7) require that the appraiser perform the appraisal
in compliance with--
[(A) the most current edition of the Uniform
Standards of Professional Appraisal Practice in
effect on the date of the appraisal;
[(B) the most current edition of the Uniform
Appraisal Standards for Federal Land
Acquisitions that is in effect on the date of
the appraisal; and
[(C) the specific appraisal guidelines
developed in accordance with this title;
[(8) require that the appraisal report--
[(A) be a full narrative report, in
compliance with the reporting standards of the
Uniform Standards of Professional Appraisal
Practice; and
[(B) comply with the reporting guidelines
established by the Uniform Appraisal Standards
for Federal Land Acquisitions; and
[(9) before accepting any appraisal, conduct a review
of the appraisal to ensure that the guidelines made
available to the appraiser have been followed and that
the appraised values are properly supported.
[(b) Specific Appraisal Guidelines.--In the
development of specific appraisal guidelines in
accordance with subsection (a)(3), the
instructions to an appraiser shall require, at
a minimum, the following:
[(1) Appraisal of a typical lot.--
[(A) In general.--In conducting an appraisal
under this section, the appraiser--
[(i) shall not appraise each
individual lot;
[(ii) shall appraise a typical lot or
lots, selected by the cabin owners and
the agency in a manner consistent with
the policy of the program; and
[(iii) shall be provided, and give
appropriate consideration to, any
information contained in the inventory
of improvements relating to the lot
being appraised.
[(B) Estimate of market value of typical
lot.--
[(i) In general.--The appraiser shall
estimate the market value of a typical
lot in accordance with this title.
[(ii) Equivalence to legally
subdivided lot.--In selecting a
comparable sale under this title, the
appraiser shall recognize that the
typical lot will not usually be
equivalent to a legally subdivided lot.
[(2) Exception for certain sales of land.--In
conducting an appraisal under this title, the
appraiser--
[(A) shall not select sales of comparable
land that are sales of land within developed
urban areas; and
[(B) should not, in most circumstances,
select a sale of comparable land that includes
land that is encumbered by a conservation or
recreational easement that is held by a
government or institution, except land that is
limited to use as a site for 1 home.
[(3) Adjustments for typical value influences.--
[(A) In general.--The appraiser shall
consider, and adjust as appropriate, the price
of sales of comparable land for all typical
value influences described in subparagraph (B).
[(B) Value influences.--The typical value
influences referred to in subparagraph (A)
include--
[(i) differences in the locations of
the parcels;
[(ii) accessibility, including
limitations on access attributable to--
[(I) weather;
[(II) the condition of roads
or trails;
[(III) restrictions imposed
by the agency; or
[(IV) other factors;
[(iii) the presence of marketable
timber;
[(iv) limitations on, or the absence
of, services such as law enforcement,
fire control, road maintenance, or snow
plowing;
[(v) the condition and regulatory
compliance of any site improvements;
and
[(vi) any other typical value
influences described in standard
appraisal literature.
[(4) Adjustments to sales of comparable parcels.--
[(A) Utilities, access, or facilities.--
[(i) Agency.--Utilities, access, or
facilities serving a lot that are
provided by the agency shall be
included as features of the lot being
appraised.
[(ii) Cabin owners.--Utilities,
access, or facilities serving a lot
that are provided by the cabin owner
(or a predecessor of the cabin owner)
shall not be included as a feature of
the lot being appraised.
[(iii) Third parties.--Utilities,
access, or facilities serving a lot
that are provided by a third party
shall not be included as a feature of
the lot being appraised unless, in
accordance with subsection (a)(1), the
agency determines that the capital
costs have not been or are not being
paid by the cabin owner (or a
predecessor of the cabin owner).
[(iv) Withdrawal of utility or access
by agency.--If, during the term of an
authorization, the agency or an act of
God creates a substantial and
materially adverse change in--
[(I) the provision or
maintenance of any utility or
access; or
[(II) a qualitative feature
of the lot or immediate
surroundings,
[the cabin owner shall have the right
to request, and, at the discretion of
the Secretary, obtain a new
determination of the base cabin user
fee at the expense of the agency.
[(B) Adjustment for exclusion.--In a case in
which any comparable sale includes utilities,
access, or facilities that are to be excluded
in the appraisal of the subject lot, the price
of the comparable sale shall be adjusted, as
appropriate.
[(C) Adjustment process.--
[(i) In general.--The appraiser shall
consider and adjust, as appropriate,
the price of each sale of a comparable
parcel for all nonnatural features
referred to in subparagraph (A)(ii)
that--
[(I)(aa) are present at, or
add value to, the comparable
parcel; but
[(bb) are not present at the
lot being appraised; or
[(II) are not included in the
appraisal as described in
subparagraph (A).
[(ii) Adjustments.--
[(I) In general.--In a case
in which the price of a parcel
sold is to be adjusted in
accordance with subparagraph
(B), the adjustment may be
based on an analysis of market
or cost information or both.
[(II) Cost information.--If
cost information is used as the
basis of an adjustment under
subclause (I), the cost
information shall be supported
by direct market evidence.
[(iii) Analysis of cost
information.--An analysis of cost
information under clause (ii)(I) should
include allowances, as appropriate, if
the allowances are consistent with--
[(I) the Uniform Standards of
Professional Appraisal Practice
in effect on the date of the
analysis; and
[(II) the Uniform Appraisal
Standards for Federal Land
Acquisition.
[(D) Reappraisal for and recalculation of
base cabin user fee.--Periodically, but not
less often than once every 10 years, the
Secretary shall recalculate the base cabin user
fee (including conducting any reappraisal
required to recalculate the base cabin user
fee).
[SEC. 607. CABIN USER FEES.
[(a) In General.--The Secretary shall establish the cabin
user fee as the amount that is equal to 5 percent of the market
value of the lot, as determined in accordance with section 606,
reflecting an adjustment to the typical market rate of return
due to restrictions imposed by the permit, including--
[(1) the limited term of the authorization;
[(2) the absence of significant property rights
normally attached to fee simple ownership; and
[(3) the public right of access to, and use of, any
open portion of the lot on which the cabin or other
enclosed improvements are not located.
[(b) Fee for Caretaker Cabin.--The base cabin user fee for
a lot on which a caretaker cabin is located shall not be
greater than the base cabin user fee charged for the authorized
use of a similar typical lot in the tract.
[(c) Annual Cabin User Fee in the Event of Determination
not to Reissue Authorization.--If the Secretary determines that
an authorization should not be reissued at the end of a term,
the Secretary shall--
[(1) establish as the new base cabin user fee for the
remaining term of the authorization the amount charged
as the cabin user fee in the year that was 10 years
before the year in which the authorization expires; and
[(2) calculate the current cabin user fee for each of
the remaining 9 years of the term of the authorization
by multiplying--
[(A) \1/10\ of the new base cabin user fee;
by
[(B) the number of years remaining in the
term of the authorization after the year for
which the cabin user fee is being calculated.
[(d) Annual Cabin User Fee in Event of Changed
Conditions.--If a review of a decision to convert a lot to an
alternative public use indicates that the continuation of the
authorization for use and occupancy of the cabin by the cabin
owner is warranted, and the decision is subsequently reversed,
the Secretary may require the cabin owner to pay any portion of
annual cabin user fees that were forgone as a result of the
expectation of termination of use and occupancy of the cabin by
the cabin owner.
[(e) Termination of Fee Obligation in Loss Resulting From
Acts of God or Catastrophic Events.--On a determination by the
agency that, because of an act of God or a catastrophic event,
a lot cannot be safely occupied and the authorization for the
lot should accordingly be terminated, the fee obligation of the
cabin owner shall terminate effective on the date of the
occurrence of the act or event.
[SEC. 608. ANNUAL ADJUSTMENT OF CABIN USER FEE.
[(a) In General.--The Secretary shall adjust the cabin user
fee annually, using a rolling 5-year average of a published
price index in accordance with subsection (b) or (c) that
reports changes in rural or similar land values in the State,
county, or market area in which the lot is located.
[(b) Initial Index.--
[(I) In general.--For the period of 10 years
beginning on the date of enactment of this title, the
Secretary shall use changes in agricultural land prices
in the appropriate State or county, as reported in the
Index of Agricultural Land Prices published by the
Department of Agriculture, to determine the annual
adjustment to the cabin user fee in accordance with
subsections (a) and (d).
[(2) Statewide changes.--In determining the annual
adjustment to the cabin user fee for an authorization
located in a county in which agricultural land prices
are influenced by the value influences described in
section 606(b)(3), the Secretary shall use average
statewide changes in the State in which the lot is
located.
[(c) New Index.--
[(1) In general.--Not later than 10 years after the
date of enactment of this title, the Secretary may
select and use an index other than the method of
adjustment of a cabin user fee described in subsection
(b)(2) to adjust a cabin user fee if the Secretary
determines that a different index better reflects
change in the value of a lot over time.
[(2) Selection process.--Before selecting a new
index, the Secretary shall--
[(A) solicit and consider comments from the
public; and
[(B) not later than 60 days before the date
on which the Secretary makes a final index
selection, submit any proposed selection of a
new index to--
[(i) the Committee on Resources of
the House of Representatives; and
[(ii) the Committee on Agriculture,
Nutrition, and Forestry of the Senate.
[(d) Limitation.--In calculating an annual adjustment to
the base cabin user fee as determined by the initial index
described in section (b), the Secretary shall--
[(1) limit any annual fee adjustment to an amount
that is not more than 5 percent per year when the
change in agricultural land values exceeds 5 percent in
any 1 year; and
[(2) apply the amount of any adjustment that exceeds
5 percent to the annual fee payment for the next year
in which the change in the index factor is less than 5
percent.
[SEC. 609. PAYMENT OF CABIN USER FEES.
[(a) Due Date for Payment of Fees.--A cabin user fee shall
be prepaid annually by the cabin owner.
[(b) Payment of Equal or Lesser Fee.--If, in accordance
with section 607, the Secretary determines that the amount of a
new base cabin user fee is equal to or less than the amount of
the current base cabin user fee, the Secretary shall require
payment of the new base cabin user fee by the cabin owner in
accordance with subsection (a).
[(c) Payment of Greater Fee.--If, in accordance with
section 607, the Secretary determines that the amount of a new
base cabin user fee is greater than the amount of the current
base cabin user fee, the Secretary shall--
[(1) require full payment of the new base cabin user
fee in the first year following completion of the fee
determination procedure if the increase in the amount
of the new base cabin user fee is not more than 100
percent of the current base cabin user fee; or
[(2) phase in the increase over the current base
cabin user fee in approximately equal increments over 3
years if the increase in the amount of the new base
cabin user fee is more than 100 percent of the current
base cabin user fee.
[SEC. 610. RIGHT OF SECOND APPRAISAL.
[(a) Right of Second Appraisal.--On receipt of notice from
the Secretary of the determination of a new base cabin user
fee, the cabin owner--
[(1) not later than 60 days after the date on which
the notice is received, may notify the Secretary of the
intent of the cabin owner to obtain a second appraisal;
and
[(2) may obtain, within 1 year following the date of
receipt of the notice under this subsection, at the
expense of the cabin owner, a second appraisal of the
typical lot on which the initial appraisal was
conducted.
[(b) Conduct of Second Appraisal.--In conducting a second
appraisal, the appraiser selected by the cabin owner shall--
[(1) have qualifications equivalent to the appraiser
that conducted the initial appraisal in accordance with
section 606(a)(4);
[(2) use the appraisal guidelines used in the initial
appraisal in accordance with section 606(a)(5);
[(3) consider all relevant factors in accordance with
this title (including guidelines developed under
section 606(a)(3)); and
[(4) notify the Secretary of any material differences
of fact or opinion between the initial appraisal
conducted by the agency and the second appraisal.
[(c) Request for Reconsideration of Base Cabin User Fee.--A
cabin owner shall submit to the Secretary any request for
reconsideration of the base cabin user fee, based on the
results of the second appraisal, not later than 60 days after
the receipt of the report for the second appraisal.
[(d) Reconsideration of Base Cabin User Fee.--On receipt of
a request from the cabin owner under subsection (c) for
reconsideration of a base cabin user fee, not later than 60
days after the date of receipt of the request, the Secretary
shall--
[(1) review the initial appraisal of the agency;
[(2) review the results and commentary from the
second appraisal;
[(3) determine a new base cabin user fee in an amount
that is--
[(A) equal to the base cabin user fee
determined by the initial or the second
appraisal; or
[(B) within the range of values, if any,
between the initial and second appraisals; and
[(4) notify the cabin owner of the amount of the new
base cabin user fee.
[SEC. 611. RIGHT OF APPEAL AND JUDICIAL REVIEW.
[(a) Right of Appeal.--Notwithstanding any action of a
cabin owner to exercise rights in accordance with section 610,
the Secretary shall by regulation grant the cabin owner the
right to an administrative appeal of the determination of a new
base cabin user fee.
[(b) Judicial Review.--A cabin owner that is adversely
affected by a final decision of the Secretary under this title
may bring a civil action in United States district court.
[SEC. 612. CONSISTENCY WITH OTHER LAW AND RIGHTS.
[(a) Consistency With Rights of the United States.--Nothing
in this title 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. 613. REGULATIONS.
[Not later than 2 years after the date of enactment of this
title, the Secretary shall promulgate regulations to carry out
this title.
[SEC. 614. TRANSITION PROVISIONS.
[(a) Assessment of Annual Fees.--For the period of time
determined under subsection (b), the Secretary shall charge
each cabin owner an annual fee as follows:
[(1) Lots not appraised since september 30, 1995.--
For a lot that has not been appraised since September
30, 1995, the annual fee shall be equal to the amount
of the annual fee in effect on the date of enactment of
this title, adjusted annually to reflect changes in the
Implicit Price Deflator-Gross National Product Index.
[(2) Lots appraised on or after september 30, 1995.--
[(A) In general.--Except as provided in
subparagraph (B), for a lot that has been
appraised on or after September 30, 1995, the
annual fee shall be equal to the amount of the
fee in effect on the date of enactment of this
title, adjusted annually to reflect changes in
the Implicit Price Deflator-Gross National
Product Index.
[(B) Appraisals resulting in base fee
increase.--
[(i) In general.--Except as provided
in clause (ii), for a lot that has been
appraised on or after September 30,
1995, for which the appraisal resulted
in an increase of the base fee by an
amount greater than $3,000, the annual
fee shall be equal to the sum of $3,000
plus the amount of the annual fee in
effect on October 1, 1996, adjusted
annually to reflect the percentage
change in the Implicit Price Deflator-
Gross National Product Index.
[(ii) Fees paid after request of new
appraisal or peer review.--If--
[(I) the cabin owner of a lot
described in clause (i)
requests a new appraisal or
peer review under subsection
(c); and
[(II) the base cabin user fee
established as a result of the
appraisal or peer review is
determined to be an amount that
is 90 percent or more of the
fee in effect for the lot as
determined by an appraisal
conducted on or after September
30, 1995,
the Secretary shall charge the cabin
owner, in addition to the annual fee
that would otherwise have been due
under section 609, the difference
between the base cabin user fee
determined through the conduct of the
new appraisal or peer review and the
annual fee that would otherwise have
been due under section 609, to be
assessed retroactively for each year
beginning with the year in which the
previous appraisal was conducted, and
to be paid in 3 equal annual
installments.
[(b) Term.--
[(1) Lots not appraised since september 30, 1995.--
For a lot that has not been appraised since September
30, 1995, the Secretary shall charge fees in accordance
with subsection (a)(2)(A) until--
[(A) a base cabin user fee is determined in
accordance with--
[(i) this title; or
[(ii) regulations and policies in
effect on the date of enactment of this
title; and
[(B) the right of the cabin owner to a second
appraisal under section 610 is exhausted.
[(2) Lots appraised on or after september 30, 1995.--
For a lot that has been appraised on or after September
30, 1995, the Secretary shall charge fees under
subsection (a)(2) until--
[(A) the cabin owner requests a new appraisal
or peer review, and a base cabin user fee is
established, under subsection (c); or
[(B) in the absence of a request for a peer
review or a new appraisal under subsection (c),
the date that is 2 years after the date on
which the Forest Service promulgates
regulations and policies and develops appraisal
guidelines under this title.
[(c) Request for New Appraisal Under New Law.--
[(1) In general.--Not later than 2 years after the
promulgation of final regulations and policies and the
development of appraisal guidelines in accordance with
section 606(a)(5), cabin owners that are subject to
appraisals completed after September 30, 1995, but
before the date of promulgation of final regulations
under section 613, may request, in accordance with
paragraph (2), that the Secretary--
[(A) conduct a new appraisal and determine a
new base cabin user fee in accordance with this
title; or
[(B) commission a peer review of the existing
appraisals in accordance with paragraph (4).
[(2) Appraisal groupings by typical lot.--A request
for a new appraisal or for a peer review of existing
appraisals under paragraph (1) shall be made by a
majority of the cabin owners in a group of cabins
represented in the appraisal process by a typical lot.
[(3) Conduct of new appraisal.--On receipt of a
request for an appraisal and fee determination in
accordance with paragraph (2), the Secretary shall
conduct the new appraisal and fee determination in
accordance with this title.
[(4) Peer review of existing appraisals.--
[(A) In general.--On receipt of a request for
peer review in accordance with paragraph (2),
the Secretary shall obtain from an independent
professional appraisal organization a review of
the appraisal (including any report on the
appraisal) that was used to establish the
estimated fee simple value of the lots within
the subject grouping.
[(B) Inconsistency.--If peer review described
in subparagraph (A) results in a determination
that an appraisal or appraisal report includes
provisions or procedures that were implemented
or conducted in a manner inconsistent with this
title, the Secretary shall, as appropriate and
in accordance with this title--
[(i) revise an existing base cabin
user fee; or
[(ii) subject to an agreement with
the cabin owners, conduct a new
appraisal and fee determination.
[(5) Payment of costs.--Cabin owners and the
Secretary shall share, in equal proportion, the payment
of all reasonable costs of any new appraisal or peer
review.
[(d) Assumption of New Base Cabin User Fee.--In the absence
of a request under subsection (c) for a new appraisal and fee
determination from a cabin owner whose cabin user fee was
determined as a result of an appraisal conducted after
September 30, 1995, but before the date of promulgation of
final regulations under section 613, the Secretary may consider
the base cabin user fee resulting from the appraisal conducted
between September 30, 1995 and the date of promulgation of the
final regulations under section 613 to be the base cabin user
fee that complies with this section.]