[Congressional Bills 104th Congress]
[From the U.S. Government Publishing Office]
[S. 907 Introduced in Senate (IS)]

  1st Session
                                 S. 907

To amend the National Forest Ski Area Permit Act of 1986 to clarify the 
 authorities and duties of the Secretary of Agriculture in issuing ski 
  area permits on National Forest System lands and to withdraw lands 
within ski area permit boundaries from the operation of the mining and 
                         mineral leasing laws.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                 June 9 (legislative day, June 5), 1995

   Mr. Murkowski (for himself, Mr. Leahy, Mr. Campbell, Mr. Kyl, Mr. 
Brown, Mr. Gregg, Mr. Craig, and Mr. Domenici) introduced the following 
bill; which was read twice and referred to the Committee on Energy and 
                           Natural Resources

_______________________________________________________________________

                                 A BILL


 
To amend the National Forest Ski Area Permit Act of 1986 to clarify the 
 authorities and duties of the Secretary of Agriculture in issuing ski 
  area permits on National Forest System lands and to withdraw lands 
within ski area permit boundaries from the operation of the mining and 
                         mineral leasing laws.
    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. FINDINGS AND PURPOSES.

    (a) Findings.--The Congress finds the following:
            (1) Although ski areas occupy less than one-twentieth of 
        one percent of National Forest System lands nationwide, in many 
        rural areas of the United States, ski areas and investments by 
        ski area permittees on National Forest System lands form the 
        backbone of the local economy and a preponderance of the 
        employment base.
            (2) Ski area operations and their attendant communities 
        provide revenues to the United States in the form of permit 
        fees, income taxes, and other revenues which are extremely 
        significant in proportion to the limited Federal acreage and 
        Forest Service administration and contractual obligations 
        required to support such operations.
            (3) In addition to alpine skiing, many ski area permittees 
        provide multiseason facilities and enhanced access to National 
        Forest System lands that result in greater public use and 
        enjoyment of such lands than would otherwise occur.
            (4) Unlike many other private sector users of Federal 
        lands, ski areas in almost all cases assume the risk to 
        finance, construct, maintain, and market all recreational 
        facilities and improvements on such lands.
            (5) Many ski areas on National Forest System lands operate 
        in an extremely competitive environment with similar facilities 
        located on private or State lands, which requires ski area 
        permittees to maintain a high level of capital investment to 
        upgrade existing facilities and install new facilities (such as 
        lifts, trails, snowmaking and trail grooming equipment, 
        restaurants, and day care centers) to serve the public.
            (6) Despite an outward appearance of economic well-being 
        resulting from an intensive capital infrastructure, many ski 
        area operations are marginally profitable due to the 
        competition and capital investments referred to in paragraph 
        (5), weather conditions, insurance premiums, the national 
        economy, and other factors beyond the control of the ski area 
        permittee.
            (7) Because of the contributions of ski areas to the 
        economies of the United States and the rural communities in 
        which they are located, and the enhanced use and enjoyment of 
        National Forest System lands resulting from ski areas, it is in 
        the national interest for the United States, where consistent 
        with national forest management objectives, to take actions to 
        promote the long-term economic health and stability of ski 
        areas and associated communities.
            (8) The National Forest Ski Area Permit Act of 1986 (16 
        U.S.C. 497b) has been of assistance to ski area operations on 
        National Forest System lands by providing longer term lease 
        tenure and contractual stability to ski area permittees, but 
        further adjustments and policy direction are warranted to 
        address problems related to permit fees and fee calculations 
        and conflicts with certain mineral activities.
    (b) Purpose.--In light of the findings specified in subsection (a), 
it is the purpose of this Act--
            (1) to legislate a ski area permit fee that returns fair 
        market value to the United States and at the same time--
                    (A) provides ski area permittees and the United 
                States with a simplified, consistent, predictable, and 
                equitable fee formula that is commensurate with long-
                term planning, financing, and operational needs of ski 
                areas; and
                    (B) simplifies bookkeeping and other administrative 
                burdens on ski area permittees and Forest Service 
                personnel; and
            (2) to prevent future conflicts between ski area operations 
        and mining and mineral leasing programs by withdrawing lands 
        within ski area permit boundaries from the operation of the 
        mining and mineral leasing laws.

SEC. 2. SKI AREA PERMIT FEES AND WITHDRAWAL OF SKI AREAS FROM OPERATION 
              OF MINING LAWS.

    The National Forest Ski Area Permit Act of 1986 (16 U.S.C. 497b) is 
amended by adding at the end the following new sections:

``SEC. 4. SKI AREA PERMIT FEES.

    ``(a) Ski Area Permit Fee.--After the date of the enactment of this 
section, the fee for all ski area permits on National Forest System 
lands shall be calculated, charged, and paid only as set forth in 
subsection (b) in order to--
            ``(1) return fair market value to the United States and at 
        the same time provide ski area permittees and the United States 
        with a simplified, consistent, predictable, and equitable 
        permit fee;
            ``(2) simplify administrative, bookkeeping, and other 
        requirements currently imposed on the Secretary of Agriculture 
        and ski area permittees on national forest lands; and
            ``(3) save costs associated with the calculation of ski 
        area permit fees.
    ``(b) Method of Calculation.--
            ``(1) Determination of adjusted gross revenue subject to 
        fee.--The Secretary of Agriculture shall calculate the ski area 
        permit fee (SAPF) to be charged a ski area permittee by first 
        determining the permittee's adjusted gross revenue (AGR) to be 
        subject to the permit fee. The permittee's adjusted gross 
        revenue (AGR) is equal to the sum of the following:
                    ``(A) The permittee's gross revenues from alpine 
                lift ticket and alpine season pass sales plus revenue 
                from alpine ski school operations (LTA+SSA), with such 
                total multiplied by the permittee's slope transport 
                feet percentage (STFP) on National Forest System lands.
                    ``(B) The permittee's gross revenues from nordic 
                ski use pass sales and nordic ski school operations 
                (LTN+SSN), with such total multiplied by the 
                permittee's percentage (NR) of nordic trails on 
                National Forest System lands.
                    ``(C) The permittee's gross revenues from ancillary 
                facilities (GRAF) physically located on National Forest 
                System lands, including all permittee or subpermittee 
                lodging, food service, rental shops, parking, and other 
                ancillary operations.
            ``(2) Depiction of formula.--Utilizing the abbreviations 
        indicated in paragraph (1), the calculation of the adjusted 
        gross revenue (AGR) of a ski are permittee is illustrated by 
        the following formula:
       ``AGR = ((LTA + SSA)  x  STFP) + ((LTN + SSN)  x  NR) + GRAF
            ``(3) Determination of ski area permit fee.--The Secretary 
        shall determine the ski area permit fee (SAPF) to be charged a 
        ski area permittee by multiplying adjusted gross revenue 
        determined under paragraph (1) for the permittee by the 
        following percentages for each revenue bracket and adding the 
        total for each revenue bracket:
                    ``(A) 1.5 percent of all adjusted gross revenue 
                below $3,000,000.
                    ``(B) 2.5 percent for adjusted gross revenue 
                between $3,000,000 and $15,000,000.
                    ``(C) 2.75 percent for adjusted gross revenue 
                between $15,000,000 and $50,000,000.
                    ``(D) 4.0 percent for the amount of adjusted gross 
                revenue that exceeds $50,000,000.
            ``(4) Slope transport feet percentage.--In cases where ski 
        areas are only partially located on National Forest System 
        lands, the slope transport feet percentage on national forest 
        land referred to in paragraph (1) is hereby determined to most 
        accurately reflect the percent of an alpine ski area 
        permittee's total skier service capacity which is located on 
        National Forest System land. It shall be calculated as 
        generally described in the Forest Service Manual in effect as 
        of January 1, 1992.
            ``(5) Annual adjustment of adjusted gross revenue.--In 
        order to insure that the ski area permit fee set forth in this 
        subsection remains fair and equitable to both the United States 
        and ski area permittees, the Secretary shall adjust, on an 
        annual basis, the adjusted gross revenue figures for each 
        revenue bracket in subparagraphs (A) through (D) of paragraph 
        (3) by the percent increase or decrease in the national 
        Consumer Price Index for the preceding calendar year.
    ``(c) Minimum Rental Fee.--In cases where an area of National 
Forest System land is under a ski area permit but the permittee does 
not have revenue or sales qualifying for fee payment pursuant to 
subsection (a), the permittee shall pay an annual minimum rental fee of 
$2 for each acre of National Forest System land under permit. Rental 
fees imposed under this subsection shall be paid at the time specified 
in subsection (d).
    ``(d) Time for Payment.--Unless otherwise mutually agreed to by the 
ski area permittee and the Secretary, the ski area permit fee set forth 
in subsection (b) shall be paid by the permittee by August 31 of each 
year and cover all applicable revenues received during the 12-month 
period ending on June 30 of that year. To simplify bookkeeping and fee 
calculation burdens on the permittee and the Forest Service, the 
Secretary shall no later than March 15 of each year provide each ski 
area permittee with a standardized form and worksheets (including 
annual fee calculation brackets and rates) to be utilized for fee 
calculation and submitted with the fee payment.
    ``(e) Exclusion of Revenue Obtained Outside of National Forest 
Lands.--Under no circumstances shall ski area permittee revenue or 
subpermittee revenue (other than lift ticket, area use pass, or ski 
school sales) obtained from operations physically located on 
nonnational forest land be included in the ski area permit fee 
calculation.
    ``(f) Definitions.--To simplify bookkeeping and administrative 
burdens on ski area permittees and the Forest Service, as used in this 
section, the terms `revenue' and `sales' shall mean actual income from 
sales. Such terms shall not include sales of operating equipment, 
refunds, rent paid to the permittee by sublessees, sponsor
 contributions to special events or any amounts attributable to 
employee gratuities, discounts, complimentary lift tickets, or other 
goods or services (except for bartered goods) for which the permittee 
does not receive money.
    ``(g) Effective Date for Fees.--The ski area permit fees required 
by this section shall become effective on July 1, 1995 and cover 
receipts retroactive to July 1, 1994. If a ski area permittee has paid 
fees for the 12-month period ending on June 30, 1995, under the 
graduated rate fee system formula in effect prior to the date of the 
enactment of this section, such fees shall be credited toward the new 
ski area permit fee due for that period under this section.
    ``(h) Transitional Ski Area Permit Fees.--
            ``(1) Determination of average fees.--In order to minimize 
        in any one year the effects of converting individual ski areas 
        from the fee system in existence on the date of the enactment 
        of this section to the ski area permit fee required by 
        subsection (a), each ski area permittee subject to the new fee 
        shall determine the permittee's average existing fees (AEF) for 
        each year of the three-year period ending on June 30, 1994, and 
        the permittee's proforma average ski area permit fee (ASF) 
        under subsection (a) for each year of that period. Both the AEF 
        and ASF shall be determined by adding together the fee payment 
        made by the ski area or the estimated payment that would have 
        been paid under subsection (a) for each year of that period and 
        dividing by three.
            ``(2) Determination of transitional fees.--To calculate the 
        ski area permit fee required by subsection (a) for each year in 
        the five-year period ending on June 30, 1999, the Secretary of 
        Agriculture shall divide the ski area permit fee required by 
        subsection (a) by the ASF and then multiply by the AEF. The 
        resulting fee shall be called the Adjusted Base Fee (ABF). 
        After June 30, 1999, all ski areas will pay the ski area permit 
        fee required by subsection (a) without regard to previous fees 
        or rates paid.
            ``(3) Effect of low abf.--Should the ABF be less than the 
        ski area permit fee required by subsection (a), the ski area 
        permittee shall pay the lesser of the fee required by 
        subsection (a) or the ABF, which shall be adjusted by 
        multiplying the ABF by--
                    ``(A) 1.1 for the fee required to be paid by August 
                31, 1995;
                    ``(B) 1.2 for the fee required to be paid by August 
                31, 1996;
                    ``(C) 1.3 for the fee required to be paid by August 
                31, 1997;
                    ``(D) 1.4 for the fee required to be paid by August 
                31, 1998; and
                    ``(E) 1.5 for the fee required to be paid by August 
                31, 1999.
            ``(3) Effect of high abf.--Should the ABF be greater than 
        the ski area permit fee required by subsection (a), the ski 
        area permittee shall pay the greater of the fee required by 
        subsection (a) or the ABF, which shall be adjusted by 
        multiplying the ABF by--
                    ``(A) 0.9 for the fee required to be paid by August 
                31, 1995;
                    ``(B) 0.8 for the fee required to be paid by August 
                31, 1996;
                    ``(C) 0.7 for the fee required to be paid by August 
                31, 1997;
                    ``(D) 0.6 for the fee required to be paid by August 
                31, 1998; and
                    ``(E) 0.5 for the fee required to be paid by August 
                31, 1999.

``SEC. 5. WITHDRAWAL OF SKI AREAS FROM OPERATION OF MINING LAWS.

    ``Subject to valid existing rights, all lands located within the 
boundaries of ski area permits issued prior to, on, or after the date 
of the enactment of this section pursuant to the authority of the Act 
of March 4, 1915 (16 U.S.C. 497), the Act of June 4, 1897 (16 U.S.C. 
473 et seq.), or section 3 of this Act are hereby and henceforth 
automatically withdrawn from all forms of appropriation under the 
mining laws and from disposition under all laws pertaining to mineral 
and geothermal leasing and all amendments to such laws. Such withdrawal 
shall continue for the full term of the permit and any modification, 
reissuance, or renewal of the permit. Such withdrawal shall be canceled 
automatically upon expiration or other termination of the permit 
unless, at the request of the Secretary of Agriculture, the Secretary 
of the Interior determines to continue the withdrawal. Upon 
cancellation of the withdrawal, the land shall be automatically 
restored to all appropriation not otherwise restricted under the public 
land laws.''.
                                 <all>