[Congressional Record Volume 142, Number 57 (Tuesday, April 30, 1996)]
[House]
[Pages H4137-H4138]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




        AMENDING THE NATIONAL FOREST SKI AREA PERMIT ACT OF 1986

  Mr. ALLARD. Mr. Speaker, I move to suspend the rules and pass the 
bill (H.R. 1527) 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, as amended.
  The Clerk read as follows:

                               H.R. 1527

       Be it enacted by the Senate and House of Representatives of 
     the United States of America in Congress assembled,

     SECTION 1. SKI AREA PERMIT RENTAL CHARGE.

       (a) The Secretary of Agriculture shall charge a rental 
     charge for all ski area permits issued pursuant to section 3 
     of the National Forest Ski Area Permit Act of 1986 (16 U.S.C. 
     497b), the Act of March 4, 1915 (38 Stat. 1101, chapter 144; 
     16 U.S.C. 497), or the 9th through 20th paragraphs under the 
     heading ``SURVEYING THE PUBLIC LANDS'' under the heading 
     ``UNDER THE DEPARTMENT OF THE INTERIOR'' in the Act of June 
     4, 1897 (30 Stat. 34, chapter 2), on National Forest System 
     lands. Permit rental charges for permits issued pursuant to 
     the National Forest Ski Area Permit Act of 1986 shall be 
     calculated as set forth in subsection (b). Permit rental 
     charges for existing ski area permits issued pursuant to the 
     Act of March 4, 1915, and the Act of June 4, 1897, shall be 
     calculated in accordance with those existing permits: 
     Provided, That a permittee may, at the permittee's option, 
     use the calculation method set forth in subsection (b).
       (b)(1) The ski area permit rental charge (SAPRC) shall be 
     calculated by adding the permittee's gross revenues from lift 
     ticket/year-round ski area use pass sales plus revenue from 
     ski school operations (LT+SS) and multiplying such total by 
     the slope transport feet percentage (STFP) on National Forest 
     System land. That amount shall be increased by the gross 
     year-round revenue from ancillary facilities (GRAF) 
     physically located on national forest land, including all 
     permittee or subpermittee lodging, food service, rental 
     shops, parking and other ancillary operations, to determine 
     the adjusted gross revenue (AGR) subject to the permit rental 
     charge. The final rental charge shall be calculated by 
     multiplying the AGR 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; and
       (D) 4.0 percent for the amount of adjusted gross revenue 
     that exceeds $50,000,000.
       Utilizing the abbreviations indicated in this subsection 
     the ski area permit fee (SAPF) formula can be simply 
     illustrated as:


               sapf=((lt+ss)stfp)+graf=agr; agr% brackets

       (2) In cases where ski areas are only partially located on 
     national forest lands, the slope transport feet percentage on 
     national forest land referred to in subsection (b) shall be 
     calculated as generally described in the Forest Service 
     Manual in effect as of January 1, 1992. Revenues from Nordic 
     ski operations shall be included or excluded from the rental 
     charge calculation according to the percentage of trails 
     physically located on national forest land.
       (3) In order to ensure that the rental charge remains fair 
     and equitable to both the United States and ski area 
     permittees, the adjusted gross revenue figures for each 
     revenue bracket in paragraph (1) shall be adjusted annually 
     by the percent increase or decrease in the national Consumer 
     Price Index for the preceding calendar year. No later than 3 
     years after the date of enactment of this Act and 
     periodically thereafter the Secretary shall submit to the 
     Committee on Energy and Natural Resources of the United 
     States Senate and the Committee on Resources of the United 
     States House of Representatives a report analyzing whether 
     the ski area permit rental charge legislated by this Act is 
     returning a fair market value rental to the United States 
     together with any recommendations the Secretary may have for 
     modifications of the system.
       (c) The rental charge set forth in subsection (b) shall be 
     due on June 1 of each year and shall be paid or prepaid by 
     the permittee on a monthly, quarterly, annual or other 
     schedule as determined appropriate by the Secretary in 
     consultation with the permittee. Unless mutually agreed 
     otherwise by the Secretary and the permittee, the payment or 
     prepayment schedule shall conform to the permittee's schedule 
     in effect prior to enactment of this Act. To reduce costs to 
     the permittee and the Forest Service, the Secretary shall 
     each year provide the permittee with a standardized form and 
     worksheets (including annual rental charge calculation 
     brackets and rates) to be used for rental charge calculation 
     and submitted with the rental charge payment. Information 
     provided on such forms shall be compiled by the Secretary 
     annually and kept in the Office of the Chief, U.S. Forest 
     Service.
       (d) The ski area permit rental charge set forth in this 
     section shall become effective on June 1, 1996 and cover 
     receipts retroactive to June 1, 1995: Provided, however, That 
     if a permittee has paid rental charges for the period June 1, 
     1995, to June 1, 1996, under the graduated rate rental charge 
     system formula in effect prior to the date of enactment of 
     this Act, such rental charges shall be credited toward the 
     new rental charge due on June 1, 1996. In order to ensure 
     increasing rental charge receipt levels to the United States 
     during transition from the graduated rate rental charge 
     system formula of this Act, the rental charge paid by any 
     individual permittee shall be--
       (1) for the 1995-1996 permit year, either the rental charge 
     paid for the preceding 1994-1995 base year or the rental 
     charge calculated pursuant to this Act, whichever is higher;
       (2) for the 1996-1997 permit year, either the rental charge 
     paid for the 1994-1995 base year or the rental charge 
     calculated pursuant to this Act, whichever is higher;
       (3) for the 1997-1998 permit year, either the rental charge 
     for the 1994-1995 base year or the rental charge calculated 
     pursuant to this Act, whichever is higher.

     If an individual permittee's adjusted gross revenue for the 
     1995-1996, 1996-1997, or 1997-1998 permit years falls more 
     than 10 percent below the 1994-1995 base year, the rental 
     charge paid shall be the rental charge calculated pursuant to 
     this Act.
       (e) Under no circumstances shall revenue, or subpermittee 
     revenue (other than lift ticket, area use pass, or ski school 
     sales) obtained from operations physically located on non-
     national forest land be included in the ski area permit 
     rental charge calculation.
       (f) To reduce administrative costs of ski area permittees 
     and the Forest Service the terms ``revenue'' and ``sales'', 
     as used in this section, shall mean actual income from sales 
     and 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 or employee lift tickets, discounts, 
     or other goods or services (except for bartered goods and 
     complimentary life tickets) for which the permittee does not 
     receive money.
       (g) In cases where an area of national forest land is under 
     a ski area permit but the permittee does not have revenue or 
     sales qualifying for rental charge payment pursuant to 
     subsection (a), the permittee shall pay an annual minimum 
     rental charge of $2 for each national forest acre under 
     permit or a percentage of appraised land value, as determined 
     appropriate by the Secretary.
       (h) Where the new rental charge provided for in subsection 
     (b)(1) results in an increase in permit rental charge greater 
     than one half of one percent of the permittee's adjusted 
     gross revenue as determined under subsection (b)(1), the new 
     rental charge shall be phased in over a five year period in a 
     manner providing for increases for approximately equal 
     increments.
       (i) To reduce federal costs in administering the provisions 
     of this Act, the reissuance of a ski area permit to provide 
     activities similar in nature and amount to the activities 
     provided under the previous permit shall not constitute a 
     major Federal action for the purposes of the National 
     Environmental Policy Act of 1969 (42 U.S.C. 4331 et seq.).

     SEC. 2. WITHDRAWALS.

       Subject to valid existing rights, all lands located within 
     the boundaries of ski area permits issued prior to, on or 
     after the date of enactment of this Act pursuant to authority 
     of the Act of March 4, 1915 (38 Stat. 1101, chapter 144; 16 
     U.S.C. 497), and the Act of June 4, 1897, or the National 
     Forest Ski Area Permit Act of 1986 (16 U.S.C. 497b) 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 thereto. Such withdrawal shall continue 
     for the full term of the permit and any modification, 
     reissuance, or renewal thereof. Unless the Secretary requests 
     otherwise of the Secretary of the Interior, such withdrawal 
     shall be canceled automatically upon expiration or other 
     termination of the permit and the land automatically restored 
     to all appropriation not otherwise restricted under the 
     public land laws.

  The SPEAKER pro tempore. Pursuant to the rule, the gentleman from 
Colorado [Mr. Allard] and the gentleman from New Mexico [Mr. 
Richardson] will each be recognized for 20 minutes.

[[Page H4138]]

  The Chair recognizes the gentleman from Colorado [Mr. Allard].
  Mr. ALLARD. Mr. Speaker, I yield myself such time as I may consume.
  (Mr. ALLARD asked and was given permission to revise and extend his 
remarks.)
  Mr. ALLARD. Mr. Speaker, I rise in strong support of H.R. 1527, 
legislation to amend the process by which the Forest Service calculates 
the charges for ski areas on National Forest Service lands. This is a 
good bill which simplifies 40 pages of complex Government regulations 
and procedures, reduces costs on the private sector, and generates 
additional revenue for the Treasury.
  Mr. Speaker, there are 143 ski areas located on Forest Service land 
around the country. While these ski areas represent only one-tenth of 1 
percent of the land managed by the Forest Service, tens of millions of 
persons enjoy skiing at such internationally renown sites as Vail, 
Steamboat Springs, Aspen, Jackson Hole, Mammoth, and Sugarbush every 
year. For that reason, it is important that we establish sound policy 
in the management of our ski areas, which ensures continuation of this 
strong public-private partnership.
  As ski area operations have evolved over the years into complex 
multi-season resorts, the existing graduate rate fee system for 
calculating ski area permittee fees has become increasingly complex. 
For example, the Forest Service has now instituted such practices as 
levying a charge on facilities and services on private lands which the 
Forest Service claims are related to the ski area. In 1986, Congress 
recognized that the existing system for calculating fees that ski area 
operators pay to the Federal Government was outdated and directed the 
Forest Service to develop a new fee system.
  Unfortunately, in the 10 years since Congress directed the Forest 
Service to establish a new fee system, the agency has provided no new 
recommendation to Congress. The Forest Service has spent a substantial 
amount of money studying new ways to calculate fees, but at this point 
has nothing new to suggest. Last September, the Forest Service 
announced that they were prepared to scrap all their previous work and 
start a new study.
  Instead of further studies, what this legislation presents is a new 
and simplified approach for calculating ski area permittee fees. Just 
as importantly, CBO has estimated that this legislation will actually 
increase revenues to the Treasury.
  Mr. Speaker, this bill is a win-win-win: A win for the 
administration, who will see administrative costs go down. A win for 
the Treasury, where revenues will go up. And a win for the American 
public, who enjoys recreational skiing on Forest Service lands, which 
provide this country with some of the best recreational skiing in the 
world.
  I commend the bill to my colleagues and urge its passage.
  Mr. Speaker, I reserve the balance of my time.
  Mr. RICHARDSON. Mr. Speaker, I yield myself such time as I may 
consume.
  Mr. Speaker, I support H.R. 1527, the ski fee bill, although I do 
recognize some concerns with this legislation have been expressed by 
the administration and others.
  I am all for simplifying the ski fee determination. The current 
process used by the Forest Service is cumbersome and costly, both for 
the agency and the permittees. H.R. 1527 greatly simplifies that 
process.
  The Federal Government should get fair market value for the use of 
Federal assets. Unfortunately, as circumstances currently stand, we 
cannot be assured that this bill meets that test. As the GAO has 
reported to Congress, the ski industry's fee proposal that is embodied 
in H.R. 1527 does not assure that the Federal Government receives fair 
market value. The percentages used in the bill were designed to 
generate only the same amount in revenue that the Forest Service 
presently collects.
  To address the question of fair market value, the bill includes 
language requiring the Secretary of Agriculture to report to Congress 
within 3 years on whether the bill's fee formula is achieving fair 
market value. I think this is a good idea.
  I should also note that the administration and others have expressed 
concerns about the bill's NEPA waiver for permit renewals. That 
particular language presents some policy problems. but they are not 
insurmountable.
  Mr. Speaker, as I noted earlier, the current Permit Fee System is 
cumbersome and costly. That is why the Forest Service has been moving 
to scrap it and replace it with a new fee program. Those proposed 
changes however are several years off. As such, I support H.R. 1527, 
with the understanding that the Congress can address this matter again 
if the Secretary reports to Congress that the bill's fee schedule is 
not achieving fair market value.
  I particularly want to commend the advice on this legislation I 
received from Mickey Blake, my constituent who operates the world-
renowned Taos Ski Valley, which happens to be the number one ski resort 
in the country, with all deference to my friends from Colorado.
  Mr. Speaker, I reserve the balance of my time.
  Mr. ALLARD. Mr. Speaker, I yield myself such time as I may consume.
  Mr. Speaker, I just want to compliment the chairman of the Committee 
on Resources, the gentleman from Alaska [Mr. Young], for carrying this 
valuable piece of legislation forward. I appreciate his hard work on 
behalf of ski country.
  Mr. RICHARDSON. Mr. Speaker, I yield back the balance of my time.
  Mr. ALLARD. Mr. Speaker, I yield back the balance of my time.
  The SPEAKER pro tempore. The question is on the motion offered by the 
gentleman from Colorado [Mr. Allard] that the House suspend the rules 
and pass the bill, H.R. 1527, as amended.
  The question was taken; and (two-thirds having voted in favor 
thereof) the rules were suspended and the bill, as amended, was passed.
  The title of the bill was amended so as to read: ``A bill to further 
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.''
  A motion to reconsider was laid on the table.

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