[Congressional Record Volume 145, Number 163 (Wednesday, November 17, 1999)]
[Senate]
[Pages S14696-S14701]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mr. CRAIG (for himself, Mr. Thomas, Mr. Crapo, and Mr. Burns):
  S. 1938. A bill to provide for the return of fair and reasonable fees 
to the Federal Government for the use and occupancy of National Forest 
System land under the recreation residence program, and for other 
purposes; to the Committee on Agriculture, Nutrition, and Forestry.


                  cabin user fee fairness act of 1999

  Mr. CRAIG. Mr. President, I am introducing legislation today that 
will set a new course for the Forest Service in determining fees for 
forest lots on which families and individuals have been authorized to 
build cabins for seasonal recreation since the early part of this 
century. I am pleased to have Senators Mike Crapo, Craig Thomas, and 
Conrad Burns joining me in sponsoring this legislation, which is a 
companion bill to H.R. 3327, introduced in the House of Representatives 
by Congressman George Nethercutt.
  In 1915, under the Term Permit Act, Congress set up a program to give 
families the opportunity to recreate on our public lands through the 
so-called recreation residence program. Today, 15,000 of these forest 
cabins remain, providing generation after generation of families and 
their friends a respite from urban living and an opportunity to use our 
public lands.
  These cabins stand in sharp contrast to many aspects of modern 
outdoor recreation, yet are an important aspect of the mix recreation 
opportunities for the American public. While many of us enjoy fast, 
off-road machines and watercraft or hiking to the backcountry with 
high-tech gear, others enjoy a relaxing weekend at their cabin in the 
woods with their family and friends.
  The recreation residence programs allows families all across the 
country an opportunity to use our national forests. This quiet, 
somewhat uneventful

[[Page S14697]]

program continues to produce close bonds and remarkable memories for 
hundreds of thousands of Americans, but in order to secure the future 
of the cabin program, this Congress needs to reexamine the basis on 
which fees are now being determined.
  Roughly 20 years ago, the Forest Service saw the need to modernize 
the regulations under which the cabin program is administered. 
Acknowledging that the competition for access and use of forest 
resources has increased dramatically since 1915, both the cabin owners 
and the agency wanted a formal understanding about the rights and 
obligations of using and maintaining these structures.
  New rules that resulted nearly a decade later reaffirmed the cabins 
as a valid recreational use of forest land. At the same time, the new 
policy reflected numerous limitations on use that are felt to be 
appropriate in order to keep areas of the forest where cabins are 
located open for recreational use by other forest visitors. Commercial 
use of the cabins is prohibited, as is year-round occupancy by the 
owner. Owners are restricted in the size, shape, paint color and 
presence of other structures or installations on the cabin lot. The 
only portion of a lot that is controlled by the cabin owner is that 
portion of the lot that directly underlies the footprint of the cabin 
itself.
  At some locations, the agency has determined a need to remove cabins 
for a variety of reasons related to ``higher public purposes'' and 
cabin owners wanted to be certain in the writing of new regulations 
that a fair process would guide any future decisions about cabin 
removal. At other locations, some cabins have been destroyed by fire, 
avalanche or falling trees, and a more reliable process of determining 
whether such cabins might be rebuilt or relocated was needed. It was 
determined, therefore, that this recreational program would be tied 
more closely to the forest planning process.

  The question of an appropriate fee to be paid for the opportunity of 
constructing and maintaining a cabin in the woods was also addressed at 
that time. Although the agency's policies for administration of the 
cabin program have, overall, held up well over time, the portion 
dealing with periodic redetermination of fees proved in the last few 
years to be a failure.
  A base fee was determined 20 years ago by an appraisal of sales of 
comparable undeveloped lots in the real estate market adjacent to the 
national forest where a cabin was located. The new policy called for 
reappraisal of the value of the lot 20 years later--a trigger that led 
to initiation of the reappraisal process in 1995.
  In the meantime, according to the policy, annual adjustments to the 
base fee would be tracked by the Implicit Price Deflator (IPD), which 
proved to be a faulty mechanism for this purpose. Annual adjustments to 
the fee based on movements of the IPD failed entirely to keep track of 
the booming land values associated with recreation development.
  As the results of actual reappraisals on the ground began reaching my 
office in 1997, it became clear that far more than the inoperative IPD 
was out of alignment in determining fees for the cabin owners.
  At the Pettit Lake tract in Idaho's Sawtooth National Recreation 
Area, the new base fees skyrocketed into alarming five-digit amounts--
so high that a single annual fee was nearly enough money to buy raw 
land outside the forest and construct a cabin. Meanwhile, the agency's 
appraisal methodology was resulting in new base fees in South Dakota, 
in Florida, and in some locations in Colorado that were actually lower 
than the previous fee.
  Very generally speaking, the value of the use of the forest lot is 
approximately the same for any cabin owner, whether they are tucked 
into what has become in recent years the Sawtooth National Recreation 
Area of Idaho, or high in the Sierra Mountain range of California, or 
in the lowland forests of the southeastern States. Yet Idaho cabin 
owners are now expected to pay a new average fee of $9,221 each year, 
while cabin owners in Kentucky will be paying a new average fee of 
$140.
  At the request of the chairman of the House Committee on Agriculture 
in 1998, the cabin owners named a coalition of leaders of their various 
national and State cabin owner associations to examine the methodology 
being used by the Forest Service to determine fees. It became obvious 
to these laymen that analysis of appraisal methodology and the 
determination of fees was beyond their grasp, and a prestigious 
consulting appraiser was retained to guide the cabin owners through 
their task. The report and recommendations of the coalition's 
consulting appraiser is available from my office for those who might 
wish to examine the details.
  At the bottom line, it was learned that the Forest Service--contrary 
to its own policy--was appraising and affixing value to the lots being 
provided to cabin owners as if this land were fully developed, legally 
subdivided, fee simple residential land.
  In other words, the agency has been capturing the values associated 
with a variety of structures and services that the homeowners 
themselves (not the agency) provide. The Forest Service, in setting 
fees on this basis, has been capturing incremental values assigned by a 
developer at various stages of development for risk, expectations of 
profit and other factors.
  My goal is to see that the cabin program remains affordable for 
American families. Consistent with the recommendations of the 
coalition's consulting appraiser, the methodology for determining fees 
is directed toward the value of the use to the cabin owner--not what 
the market would bear, should the Forest Service decide to sell off its 
assets.
  This is highly technical legislation. Its purpose is to send a clear 
set of instructions to appraisers in the field and a clear set of 
instructions to forest managers to respect the results of appraisals 
undertaken to place value on the raw land being offered cabin owners.
  I intend to hold hearings on this legislation early in the next 
session. I urge each of my colleagues to be in contact with cabin 
owners in their State during the congressional recess. There are more 
than 15,000 families out there who fear that the long tradition of 
cabin-based forest recreation is nearing an end because the agencies 
fee mechanism has made the program unaffordable for all but the 
wealthy. These cabin owners and I would wholeheartedly welcome the 
support and cosponsorship of all Senators for this important 
legislation.
  I ask unanimous consent that a copy of the legislation be printed in 
the Record.
  There being no objection, the bill was ordered to be printed in the 
Record, as follows:

                                S. 1938

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

     SECTION. 1. SHORT TITLE.

       This Act may be cited as the ``Fair Cabin User Fee Act of 
     1999''.

     SEC. 2. FINDINGS.

       Congress finds that--
       (1) the recreation residence program is--
       (A) a valid use of forest land and 1 of the multiple uses 
     of the National Forest System; and
       (B) an important component of the recreation program of the 
     Forest Service;
       (2) 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;
       (3) tract associations, cabin owners, their extended 
     families, guests, and others that regularly use and enjoy 
     forest cabin tracts have contributed significantly toward 
     efficient management of the program and the stewardship of 
     forest land;
       (4) cabin user fees have traditionally generated income to 
     the Federal Government in amounts significantly greater than 
     the Federal cost of administering the program;
       (5) the rights and privileges granted to owners of cabins 
     authorized under the program have steadily diminished while 
     regulatory restrictions and fees charged under the program 
     have steadily increased; and
       (6) the current fee determination procedure has been shown 
     to incorrectly reflect market value and value of use.

     SEC. 3. PURPOSES.

       The purposes of this Act 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 at a reasonable cost; and
       (2) to develop and implement a more efficient, cost-
     effective procedure for determining cabin user fees that 
     better reflects the probable value of that use by the cabin 
     owner, taking into consideration the limitations of the 
     authorization and other relevant market factors.

[[Page S14698]]

     SEC. 4. DEFINITIONS.

       In this Act:
       (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 initial fee for an authorization that results from 
     the appraisal of a lot in accordance with sections 6 and 7.
       (4) Cabin.--The term ``cabin'' means a privately built and 
     owned structure authorized for use and occupancy on National 
     Forest System land.
       (5) 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 Act.
       (6) 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.
       (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) Center.--The term ``Center'' means the Federal Center 
     for Dispute Resolution of the American Arbitration 
     Association.
       (9) 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 8.
       (10) Lot.--The term ``lot'' means a parcel of land of the 
     National Forest System on which a cabin owner is authorized 
     to build, use, occupy, and maintain a cabin and related 
     improvements.
       (11) Program.--The term ``program'' means the recreation 
     residence program established under the Act of March 4, 1915 
     (38 Stat. 1101, chapter 144).
       (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.

      SEC. 5. ADMINISTRATION OF RECREATION RESIDENCE PROGRAM.

       (a) In General.--The Secretary shall ensure, to the maximum 
     extent practicable, that the basis and procedure for 
     calculating cabin user fees results in a reasonable and fair 
     fee for an authorization that reflects the probable value of 
     the use and occupancy of a lot to the cabin owner in 
     accordance with subsection (b).
       (b) Determination of Value.--The value of the use and 
     occupancy of a lot referred to in subsection (a)--
       (1) shall not be equivalent to a rental fee of the lot; and
       (2) shall reflect regional economic influences, as 
     determined by an appraisal of the value of use of the 
     National Forest in which the lot is located.

      SEC. 6. APPRAISALS.

       (a) Requirements for Conducting Appraisals.--In 
     implementing and conducting an appraisal process for 
     determining cabin user fees, the Secretary shall--
       (1) establish an appraisal process to determine the value 
     of the fee simple estate of a typical lot or lots within a 
     tract, with adjustments to reflect limitations arising from 
     the authorization and special use permit;
       (2) enter into a contract with an appropriate professional 
     organization for the development of specific appraisal 
     guidelines in accordance with subsection (b), subject to 
     public comment and congressional review;
       (3) 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;
       (4) provide the appraiser with--
       (A) appraisal guidelines developed in accordance with this 
     Act; and
       (B) a copy of the special use permit associated with the 
     typical lot to be appraised, with an instruction to the 
     appraiser to consider any prohibitions or limitations 
     contained in the authorization;
       (5) notwithstanding any other provision of law, require the 
     appraiser to coordinate the assignment closely with affected 
     parties by seeking advice, cooperation, and information from 
     cabin owners and tract associations;
       (6) require that the appraiser perform the appraisal in 
     compliance with--
       (A) the most current edition of the Uniform Standards of 
     Professional Appraisal Practice on the date of the appraisal;
       (B) the most current edition of the Uniform Appraisal 
     Standards for Federal Land Acquisitions on the date of the 
     appraisal; and
       (C) the specific appraisal guidelines developed in 
     accordance with this Act;
       (7) require that the appraisal report be a self-contained 
     report (as defined by the Uniform Standards of Professional 
     Appraisal Practice);
       (8) require that the appraisal report 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 paragraph 
     (a)(2), 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 
     paragraph, the appraiser shall appraise a typical lot or lots 
     within a tract that are selected by the cabin owners and the 
     agency in a manner consistent with the policy of the program.
       (B) Appraisal.--In appraising a typical lot or lots within 
     a tract, the appraiser shall--
       (i) consult with affected cabin owners; and
       (ii) appraise the typical lot or lots selected for purposes 
     of comparison with other lots or groups of lots in the tract 
     having similar value characteristics (rather than appraising 
     each individual lot).
       (B) Estimate of market value of typical lot.--
       (i) In general.--The appraiser shall estimate the market 
     value of a typical lot as a parcel of undeveloped, raw land 
     that has been made available for use and occupancy by the 
     cabin owner on a seasonal or periodic basis.
       (ii) No equivalence to legally subdivided lot.--The 
     appraiser shall not appraise the typical lot as being 
     equivalent to a legally subdivided lot.
       (2) Requirement for analysis of comparable sales.--The 
     appraisal shall be based on a prioritized analysis of 1 or 
     more categories of sales of comparable land as follows:
       (A) Larger parcels.--Sales of larger, privately-owned, and 
     preferably unimproved parcels of rural land, generally 
     similar in size to the tract being examined, shall be given 
     the most weight in the analysis.
       (B) Smaller parcels.--Sales of smaller, privately-owned, 
     and preferably unimproved parcels of rural land that are not 
     part of an established subdivision shall be given secondary 
     weight in the analysis.
       (C) Mapped and recorded parcels.--Sales of privately-owned 
     parcels in a mapped and recorded rural subdivision shall be 
     given the least weight in the analysis.
       (3) Exception for certain sales of land.--In conducting an 
     analysis under paragraph (2), the appraiser shall select 
     sales of comparable land that are outside the area of 
     influence of--
       (A) land affected by urban growth boundaries;
       (B) land for which a government or institution holds a 
     conservation or recreational easement; or
       (C) land designated for conservation or recreational 
     purposes by Congress, a State, or a political subdivision of 
     a State.
       (4) Adjustments for typical value influences.--
       (A) In general.--The appraiser shall consider and adjust 
     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; or
       (III) 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.
       (5) Adjustments for restrictions on use.--In evaluating the 
     sale of a comparable fee simple parcel, an adjustment to the 
     sale price of the parcel shall be made to reflect the 
     influence of prohibitions or limitations on use or benefits 
     imposed by the agency that affect the value of the subject 
     cabin lot, including--
       (A) any prohibition against year-round use and occupancy or 
     any other restriction that limits or reduces the type or 
     amount of cabin use and occupancy;
       (B) any limitation on the right of the cabin owner to sell, 
     lease, or rent the cabin without restrictions imposed by the 
     Secretary;
       (C) any limitation on, or prohibition against, improvements 
     to the lot, such as remodeling or enlargement of the cabin, 
     construction of additional structures, landscaping, signs, 
     fencing, clothes drying lines, mail boxes, swimming pools, or 
     other recreational facilities; and
       (D) any limitation on, or prohibition against, use of the 
     lot for placement of amenities such as playground equipment, 
     domestic livestock, recreational vehicles, or boats.
       (6) Adjustments to sales of comparable parcels.--
       (A) In general.--
       (i) Utilities provided by agency.--Only utilities (such as 
     water, sewer, electricity, or telephone) or access roads or 
     trails that are clearly established as of the date of the 
     appraisal as having been provided and maintained by the 
     agency at a lot shall be included in the appraisal.
       (ii) Features provided by cabin owner.--All cabin 
     facilities, decks, docks, patios, and

[[Page S14699]]

     other nonnatural features (including utilities or access)--

       (I) shall be presumed to have been provided by, or funded 
     by, the cabin owner; and
       (II) shall be excluded from the appraisal by adjusting any 
     comparable sales with the nonnatural features referred to in 
     subparagraph (B)(ii).

       (iii) Withdrawal of utility or access by agency.--If, 
     during the term of an authorization, the agency makes a 
     substantial and materially adverse change in the provision or 
     maintenance of any utility or access, the cabin owner shall 
     have the right to request and obtain a new determination of 
     the base cabin user fee at the expense of the agency.
       (B) Adjustment for improvements.--
       (i) In general.--The appraiser shall consider and adjust 
     the price of each sale of a comparable parcel for all 
     nonnatural features referred to in subparagraph (A)(ii) 
     that--

       (I) are present at, or add value to, the parcel; but
       (II) are not present at the lot being appraised or not 
     included in the appraisal under subparagraph (A).

       (ii) Adjustments.--An adjustment to the price of a parcel 
     sold under this subparagraph shall include allowances for 
     matters such as--

       (I) depreciated current replacement costs of installing 
     nonnatural features referred to in clause (i) at the typical 
     lot being appraised, including an allowance for 
     entrepreneurial profit and overhead;
       (II) likely construction difficulties for nonnatural 
     features referred to in clause (i) at the lot being 
     appraised; and
       (III) the deduction in price that would be taken in the 
     market as a risk allowance if--

       (aa) a parcel does not have adequate access or adequate 
     sewer or water systems; and
       (bb) there is a risk of failure or material cost overruns 
     in attempting to provide the systems referred to in item 
     (aa).
       (C) 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. 7. 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 
     value of the lot, as determined in accordance with section 6, 
     reflecting an adjustment to the market rate of return based 
     solely on--
       (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 Residences.--The base cabin user fee 
     for a lot on which a caretaker residence 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--
       (i) \1/10\ of the new base cabin user fee; by
       (ii) 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, as calculated in 
     accordance with subsection (d), 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, due to an act of God or a catastrophic 
     event, a lot cannot be safely occupied and that 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. 8. 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.--
       (1) In general.--For the period of 10 years beginning on 
     the date of enactment of this Act, 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 factors described in section 6(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 Act, the Secretary may select and use an 
     index other than the index 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 Energy and Natural Resources of the 
     Senate.
       (d) Limitation.--In calculating an annual adjustment to the 
     base cabin user fee, 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. 9. PAYMENT OF CABIN USER FEES.

       (a) Due Date for Payment of Fees.--A cabin user fee shall 
     be paid or prepaid annually by the cabin owner on a monthly, 
     quarterly, annual, or other schedule, as determined by the 
     Secretary.
       (b) Payment of Equal or Lesser Fee.--If, in accordance with 
     section 7, the Secretary determines that the amount of a new 
     base cabin user fee is equal to or less than 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 
     7, the Secretary determines that the amount of a new base 
     cabin user fee is greater than 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 most recently 
     paid cabin user fee; or
       (2) phase in the increase over the current cabin user fee 
     in approximately equal increments over 3 years if the 
     increase in the amount of the new base cabin user fee is 
     greater than 100 percent of the most recently paid base cabin 
     user fee.
       (d) Requirement for Payment During Arbitration, Appeal, or 
     Judicial Review.--If arbitration, an appeal, or judicial 
     review concerning a cabin user fee is brought in accordance 
     with section 11 or 12, the Secretary shall--
       (1) suspend annual payment by the cabin owner of any 
     increase in the cabin user fee, pending completion of the 
     arbitration, appeal, or judicial review; and
       (2) make any adjustments, as necessary, that result from 
     the findings of the arbitration, appeal, or judicial review 
     by providing to the cabin owner--
       (A)(i) a credit toward future cabin user fee payments; or
       (ii) a refund for any overpayment of the cabin user fee; 
     and
       (B) a supplemental billing for any additional amount of the 
     cabin user fee that is due.

      SEC. 10. 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, shall 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) consider all relevant factors in accordance with this 
     Act (including guidelines developed under section 6(a)(2)); 
     and
       (2) 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 a 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--

[[Page S14700]]

       (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 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 fee.

      SEC. 11. RIGHT OF ARBITRATION.

       (a) In General.--
       (1) Request for arbitration.--Not later than 30 days after 
     the receipt of notice of a new base cabin fee under section 
     10(d)(4), the tract association may request arbitration if a 
     cabin owner in the tract and the Secretary are unable to 
     reach agreement on the amount of the base cabin user fee 
     determined in accordance with section 10.
       (2) Identification of Third-Party Neutrals.--If arbitration 
     is requested under paragraph (1), the Secretary shall 
     promptly request the Center to develop a list of the names of 
     not fewer than 20 appraisers and 10 attorneys who possess 
     appropriate training and experience in valuations of land and 
     interest in land to serve as qualified third-party neutrals.
       (b) Arbitration.--Not later than 30 days after the receipt 
     of a request from the tract association for arbitration, the 
     Secretary shall--
       (1) notify the Center of the request; and
       (2) request the Center to provide to the Secretary and the 
     tract association, within 15 days--
       (A) instructions related to arbitration procedures; and
       (B) the list of qualified third-party neutrals described in 
     subsection (a)(2).
       (c) Arbitration Panel.--
       (1) In general.--Not later than 15 days after the receipt 
     of the list described in subsection (a)(2), the Secretary and 
     the tract association may each recommend the names of 2 
     appraisers and 1 attorney from the list for consideration in 
     the selection of an arbitration panel by the Center.
       (2) Availability of list.--The Secretary and the tract 
     association shall disclose to each other the names of third-
     party neutrals recommended under paragraph (1).
       (3) Option to eliminate recommended neutrals.--The 
     Secretary and the tract association may each peremptorily 
     eliminate from consideration for the arbitration panel 1 
     third-party neutral recommended under paragraph (1).
       (4) Selection by center.--From the third-party neutrals 
     recommended to the Center under paragraph (1) that are not 
     eliminated from consideration under paragraph (3), the Center 
     shall select and retain an arbitration panel consisting of 2 
     appraisers and 1 attorney.
       (5) Notification of establishment.--Not later than 5 days 
     after the selection of members of the arbitration panel, the 
     Center shall notify the Secretary and the tract association 
     of the establishment of the arbitration panel.
       (d) Arbitration Procedure.--
       (1) Submission of information.--Not later than 30 days 
     after notification by the Center of the establishment of the 
     arbitration panel under subsection (c)(3), each party shall 
     submit to the arbitration panel--
       (A) the appraisal report of each party, including comments, 
     if any, of material differences of fact or opinion related to 
     the initial appraisal or the second appraisal;
       (B) a copy of the authorization associated with any typical 
     lot that was subject to appraisal;
       (C) a copy of this Act; and
       (D) a copy of appraisal guidelines developed in accordance 
     with section 6(a)(2).
       (2) Hearing or field inspection.--On agreement of both 
     parties, the arbitration may be conducted without a hearing 
     or a field inspection.
       (3) Schedule for decision.--
       (A) In general.--Except as provided in subparagraph (B), 
     not later than 60 days after the receipt of all materials 
     described in paragraph (1), the arbitration panel shall 
     prepare and forward to the Secretary a written advisory 
     decision on the appropriate amount of the base cabin user 
     fee.
       (B) Extension.--If the arbitration panel or the parties to 
     the arbitration determine that a hearing or field inspection 
     is necessary, the date for submission of the advisory 
     decision under subparagraph (A) shall be extended for--
       (i) not more than 30 days; or
       (ii) in the case of difficult or hazardous road or weather 
     conditions, such an additional period of time as is necessary 
     to complete the inspection.
       (4) Determination of recommended base cabin user fee.--The 
     base cabin user fee recommended by the arbitration panel 
     shall fall within the range of values, if any, between the 
     initial and second appraisals submitted to the arbitration 
     panel by the parties.
       (e) Adoption of Recommended Base Cabin User Fee.--
       (1) In general.--Not later than 45 days after the receipt 
     of the recommendation by the arbitration panel, the Secretary 
     shall make a determination to adopt or reject the recommended 
     base cabin user fee.
       (2) Notice to tract association.--Not later than 15 days 
     after making the determination under paragraph (1), the 
     Secretary shall provide notice of the determination to the 
     tract association.
       (f) No Admission of Fact or Recommendation.--Neither the 
     fact that arbitration in accordance with this section has 
     occurred, nor the recommendation of the arbitration panel, 
     shall be admissible in any court or administrative 
     proceeding.
       (g) Costs of Arbitration.--
       (1) Fees.--
       (A) In general.--In addition to amounts collected under 
     paragraph (2), the Center may charge a reasonable fee to each 
     party to an arbitration under this Act for the provision of 
     arbitration services.
       (B) Transfer.--Fees collected under this paragraph shall be 
     transferred to the Secretary for use in the administration of 
     the program without further Act of appropriation.
       (2) Cost sharing.--The agency and the tract association 
     shall each pay 50 percent of the costs incurred by the Center 
     in establishing and administering an arbitration in 
     accordance with this section, unless the arbitration panel 
     recommends that either the agency or the tract association 
     bear the entire cost of establishing and administering the 
     arbitration.
       (h) Funding.--
       (1) Authorization of appropriations for initial costs.--
     There is authorized to be appropriated to the agency for the 
     initial costs of establishing and administering the program 
     not to exceed $15,000.
       (2) Arbitration fees.--Any amounts exceeding the amount 
     authorized by paragraph (1) that are required for the 
     administration of the program shall be derived from 
     arbitration fees charged under subsection (g)(1).

      SEC. 12. RIGHT OF APPEAL AND JUDICIAL REVIEW.

       (a) Rights of Appeal.--Notwithstanding any action of a 
     cabin owner to exercise rights in accordance with section 10 
     or 11, 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 Act 
     may commence a civil action in United States district court.

      SEC. 13. 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 fee or a condition affecting a cabin fee 
     that is inconsistent with the requirements under section 
     1303(d) of the Alaska National Interest Lands Conservation 
     Act (16 U.S.C. 3193(d)).

      SEC. 14. REGULATIONS.

       Not later than 1 year after the date of enactment of this 
     Act, the Secretary shall promulgate regulations to implement 
     this Act.

      SEC. 15. TRANSITION PROVISIONS.

       (a) In General.--On enactment of this Act, the Secretary 
     shall--
       (1) suspend appraisal activities related to existing 
     authorizations until new rules, policies, and procedures are 
     promulgated in accordance with this Act; and
       (2) temporarily charge an annual cabin user fee for each 
     lot that is--
       (A) an amount equal to the cabin user fee for the lot that 
     was in effect on September 30, 1995, adjusted by application 
     of the Implicit Price Deflator-Gross National Product Index, 
     if no appraisal of the lot on which the cabin is located was 
     completed after that date and before the date of enactment of 
     this Act;
       (B) an amount that is not more than 100 percent greater 
     than the cabin user fee in effect on September 30, 1995, 
     adjusted by application of the Implicit Price Deflator-Gross 
     National Product Index prior to reappraisal, if an appraisal 
     conducted after that date but before the date of enactment of 
     this Act resulted in the increase; or
       (C) the cabin user fee in effect on the date of enactment 
     of this Act, if an appraisal conducted after September 30, 
     1995, including adjustments resulting from application of the 
     Implicit Price Deflator-Gross National Product Index before 
     the date of enactment of this Act, resulted a base cabin user 
     fee that is not greater than the fee in effect before the 
     appraisal.
       (b) Conduct of Appraisals Under New Law.--On publication of 
     new rules, policies, and procedures under this Act, the 
     Secretary shall carry out any appraisals of lots and 
     determinations of fees that were not completed between 
     September 30, 1995, and the date of enactment of this Act.
       (c) Request for New Appraisal Under New Law.--Not later 
     than 2 years after the promulgation of final regulations and 
     policies and the development of appraisal guidelines in 
     accordance with section 6(a)(2), a cabin owner whose base 
     cabin user fee was adjusted subject to an appraisal completed 
     after September 30, 1995, but before the date of enactment of 
     this Act, may request that the Secretary conduct a new 
     appraisal and determine a new fee in accordance with this 
     Act.
       (d) Conduct of New Appraisal.--On receiving a request under 
     subsection (c), the Secretary shall conduct, and bear all 
     costs incurred in conducting, a new appraisal and fee 
     determination in accordance with this Act.
       (e) 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

[[Page S14701]]

     user fee was determined as a result of an appraisal conducted 
     after September 30, 1995, but before the date of enactment of 
     this Act, the Secretary may consider the base cabin user fee 
     resulting from the appraisal conducted between September 30, 
     1995, and the date of enactment of this Act to be the base 
     cabin user fee that complies with the transition provisions 
     of this Act.
       (f) Transitional Cabin User Fee Obligation.--
       (1) In general.--In determining the liability of the cabin 
     owner for payment of fees for the period of time between the 
     date of enactment of this Act and the determination of a base 
     cabin user fee in accordance with this Act, the Secretary 
     shall--
       (A) require the cabin owner to remit any balance owed for 
     any underpayment of an annual cabin user fee; or
       (B) if an overpayment of a cabin user fee has occurred, 
     credit the cabin owner, or an heir or assign of the cabin 
     owner, toward future cabin user fee obligations.
       (2) Billing.--The agency shall bill a cabin owner for 
     amounts determined to be owed under paragraph (1)(A) in 
     approximately equal increments over 3 years.
                                 ______