[House Report 104-516]
[From the U.S. Government Publishing Office]
104th Congress Rept. 104-516
HOUSE OF REPRESENTATIVES
2d Session Part 1
_______________________________________________________________________
AMENDING THE NATIONAL FOREST SKI AREA PERMIT ACT OF 1986
_______
April 15, 1996.--Committed to the Committee of the Whole House on the
State of the Union and ordered to be printed
_______
Mr. Young of Alaska, from the Committee on Resources, submitted the
following
R E P O R T
[To accompany H.R. 1527]
[Including cost estimate of the Congressional Budget Office]
The Committee on Resources, to whom was referred 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, having considered the same, report favorably thereon with
amendments and recommend that the bill as amended do pass.
The amendments are as follows:
Strike out all after the enacting clause and insert in lieu
thereof the following:
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 pre-paid 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.
Amend the title 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.
PURPOSE OF THE BILL
The purposes of H.R. 1527 are to establish a Forest Service
ski area permit rental charge that provides ski area permittees
and the Forest Service with a simplified, consistent, and
equitable rental charge formula, and to withdraw lands within
ski area permit boundaries from the operation of mining and
mineral leasing laws.
BACKGROUND AND NEED FOR LEGISLATION
Several laws, including the National Forest Ski Area Permit
Act of 1986, require the Secretary of Agriculture to charge a
fair market value rental charge for ski area use of National
Forest lands. Nationwide there are 143 ski areas on, or
partially on, National Forest land. In 1995, these ski areas
occupied approximately 183,000 acres of National Forest land.
The operators paid $18.7 million, or approximately 2 percent of
gross revenues (which were $943 million), in rental charges
under the Graduated Rate Fee System (GRFS) discussed below.
The current formula used to determine ski area rental
charges is contained in the Forest Service Manual and Forest
Service Handbook as supplemented by interim directives. The
GRFS is encompassed in 40 pages and contains hundreds of
definitions, rulings and policies. Under GRFS, each ski area:
(1) Works with the Forest Service to define a ``development
area boundary'' (a process that has become increasingly
contentious); (2) calculates actual revenues or imputed
revenues (gratuities, discounts, complimentary tickets, etc.)
from revenue sources within that boundary; (3) ascertains
``break even categories'' for a variety of revenue components;
(4) determines gross fixed assets for deduction purposes; (5)
applies Slope Transport Feet Percentage deductions (the
percentage of an area's uphill lift capacity which is located
on or off the Forest Service lands) to various revenue
components; and then (6) calculates the final rental charge.
Over the 20 years since GRFS' initial application to ski
areas, both the GRFS system itself, and the nature of ski area
operations, have become more complex. In particular, many of
the larger ski areas have evolved into multi-season resorts,
with income and activities divided among Forest Service and
private lands. As a consequence, certain components of the
GRFS, which originally involved relatively simple accounting of
activities on National Forest lands, have become burdensome to
both ski area operators and the Forest Service. Increasingly,
auditing of the rental charge paid by ski area operators under
GRFS has become expensive and time consuming. Furthermore,
there is considerable regional variation in implementation of
rental charge policies.
In recent years, the Forest Service has justified assessing
rental charges against businesses on private lands on the
theory that the related businesses would not exist if it were
not for the ski area permits on the National Forest. The Forest
Service has also proposed rental charges on ``integrated
business units'' under a ``principle of contribution.'' Under
that theory, ski area permittees would pay rental charges on
activities on private lands to the extent that the Forest
Service ski permit contributes to the private land revenue.
COMMITTEE ACTION
H.R. 1527 was introduced on May 1, 1995, by Congressman Don
Young (R-AK). The bill was referred to the Committee on
Resources, and within the Committee to the Subcommittee on
National Parks, Forests and Lands. The bill was also
secondarily referred to the Committee on Agriculture. On July
25, 1995, the Subcommittee held a hearing on H.R. 1527. On
December 19, 1995, the Subcommittee met to mark up H.R. 1527.
Congressman James Hansen (R-UT) offered an amendment in the
nature of a substitute which was adopted by voice vote. The
bill was then ordered favorably reported to the Full Committee.
On March 13, 1996, the Full Resources Committee met to consider
H.R. 1527. A motion to dispense with the first reading of the
bill passed by a roll call vote of 32-9, as follows:
----------------------------------------------------------------------------------------------------------------
Members Yeas Nays Members Yeas Nays
----------------------------------------------------------------------------------------------------------------
Mr. Young (Chairman)........................ X ....... Mr. Miller.................... ....... X
Mr. Tauzin.................................. X ....... Mr. Markey.................... ....... X
Mr. Hansen.................................. X ....... Mr. Rahall.................... ....... .......
Mr. Saxton.................................. X ....... Mr. Vento..................... ....... .......
Mr. Gallegly................................ X ....... Mr. Kildee.................... ....... X
Mr. Duncan.................................. ....... ....... Mr. Williams.................. ....... .......
Mr. Hefley.................................. X ....... Mr. Gejdenson................. ....... X
Mr. Doolittle............................... X ....... Mr. Richardson................ ....... X
Mr. Allard.................................. X ....... Mr. DeFazio................... X .......
Mr. Golchrest............................... X ....... Mr. Faleomavaega.............. X .......
Mr. Calvert................................. X ....... Mr. Johnson................... ....... .......
Mr. Pombo................................... X ....... Mr. Abercrombie............... X .......
Mr. Torkildsen.............................. ....... ....... Mr. Studds.................... X .......
Mr. Hayworth................................ X ....... Mr. Ortiz..................... ....... .......
Mr. Cremeans................................ X ....... Mr. Pickett................... X .......
Mrs. Cubin.................................. X ....... Mr. Pallone................... ....... X
Mr. Cooley.................................. X ....... Mr. Dooley.................... X .......
Mrs. Chenoweth.............................. ....... ....... Mr. Romero-Barcelo............ X .......
Mrs. Smith.................................. X ....... Mr. Hinchey................... ....... X
Mr. Radanovich.............................. X ....... Mr. Underwood................. X .......
Mr. Jones................................... X ....... Mr. Farr...................... ....... X
Mr. Thornberry.............................. X ....... Mr. Kennedy................... ....... X
Mr. Hastings................................ X .......
Mr. Metcalf................................. X .......
Mr. Longley................................. X .......
Mr. Shadegg................................. X .......
Mr. Ensign.................................. X .......
----------------------------------------------------------------------------------------------------------------
Congressman Young then offered an amendment in the nature
of a substitute which consisted of the text reported from the
Subcommittee on December 19, 1995. Congressman Bruce Vento (D-
MN) offered an amendment which changed the frequency by which
the Secretary of Agriculture is to submit reports identifying
the manner in which the fees authorized pursuant to this Act
could be modified to achieve fair market value; the Vento
amendment was adopted by unanimous consent. Congressman Vento
then offered an amendment deleting a waiver from the National
Environmental Policy Act. The amendment was defeated by a roll
call vote of 12-30, as follows:
----------------------------------------------------------------------------------------------------------------
Members Yes Nays Members Yes Nays
----------------------------------------------------------------------------------------------------------------
Mr. Young (Chairman)........................ ....... X Mr. Miller.................... X .......
Mr. Tauzin.................................. ....... X Mr. Markey.................... X .......
Mr. Hansen.................................. ....... X Mr. Rahall.................... ....... .......
Mr. Saxton.................................. ....... X Mr. Vento..................... X .......
Mr. Gallegly................................ ....... X Mr. Kildee.................... X .......
Mr. Duncan.................................. ....... ....... Mr. Williams.................. ....... .......
Mr. Hefley.................................. ....... X Mr. Gejdenson................. X .......
Mr. Doolittle............................... ....... X Mr. Richardson................ ....... X
Mr. Allard.................................. ....... X Mr. DeFazio................... X .......
Mr. Gilchrest............................... ....... X Mr. Faleomavaega.............. X .......
Mr. Calvert................................. ....... X Mr. Johnson................... ....... .......
Mr. Pombo................................... ....... X Mr. Abercrombie............... ....... X
Mr. Torkildsen.............................. ....... X Studds........................ X .......
Mr. Hayworth................................ ....... X Mr. Ortiz..................... ....... .......
Mr. Cremeans................................ ....... X Mr. Pickett................... ....... X
Mrs. Cubin.................................. ....... X Pallone....................... X .......
Mr. Cooley.................................. ....... ....... Mr. Dooley.................... ....... X
Mrs. Chenoweth.............................. ....... ....... Mr. Romero-Barcelo............ ....... X
Mrs. Smith.................................. ....... X Mr. Hinchey................... X .......
Mr. Radanovich.............................. ....... X Mr. Underwood................. ....... X
Mr. Jones................................... ....... X Mr. Farr...................... X .......
Mr. Thornberry.............................. ....... X Mr. Kennedy................... X .......
Mr. Hastings................................ ....... X .............................. ....... .......
Mr. Metcalf................................. ....... X .............................. ....... .......
Mr. Longley................................. ....... X .............................. ....... .......
Mr. Shadegg................................. ....... X .............................. ....... .......
Mr. Ensign.................................. ....... X
----------------------------------------------------------------------------------------------------------------
The Young amendment in the nature of a substitute, as
amended, was adopted by voice vote, and the bill, as amended,
was ordered favorably reported to the House of Representatives
by voice vote, in the presence of a quorum.
A bill similar to H.R. 1527 was included in H.R. 2491, the
Seven Year Balanced Budget Reconciliation Act of 1995, which
was vetoed by the President on December 6, 1995.
SECTION-BY-SECTION ANALYSIS
Section 1. Ski area permit rental charge.
Subsection (1)(a) provides that the Secretary of
Agriculture shall charge ski area permittees for rental of
Forest Service lands under permit. Permittees with permits
issued pursuant to a 1986 permit act shall be required to pay a
rental charge calculated according to the method outlined in
subsection (b). Permittees with permits issued pursuant prior
to the 1986 permit act are given the opportunity to use the new
calculation system but otherwise may continue to calculate
their rental charge in accordance with their existing permits.
Subsection (b) sets forth the formula under which the ski
area permit rental charge (SAPRC) for ski areas on or partially
on National Forests, including Nordic ski areas, shall be
calculated. It directs annual adjustment of each revenue
bracket's adjusted gross revenue figures by the percent
increase or decrease in the Consumer Price Index.
Subsection (c) provides that the scheduling of rental
charge payments be on an annual basis, with monthly, quarterly
or other payments or prepayments to be determined by the Forest
Service and individual ski areas.
Subsection (d) provides that the new legislated rental
charge shall become effective on June 1, 1996, and cover
receipts retroactive to June 1, 1995. However, if a permittee
has paid rental charges for the period June 1, 1995, to June 1,
1996, under the existing graduated rate fee system formula,
this payment constitutes a credit toward the new rental charge.
To ensure that the United States will receive increased rental
charge receipts during a three-year transition from the
existing graduated rate fee system to the new system, the
subsection places a floor on each individual ski area's payment
under which every area will pay the higher of the 1994-1995
rental charge or the rental charge calculated in accordance
with subsection (b).
Subsection (e) prohibits revenue or subpermittee revenue
(other than lift ticket, area use pass, or ski school sales)
obtained from operations located on non-National Forest land
from being included in the SAPRC calculation.
Subsection (f) defines ``revenue'' and ``sales.''
Subsection (g) provides, 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
under subsection (a), payment of an annual minimum rental fee
of $2 per National Forest acre under permit, or a percentage of
appraised land value, as determined by the Secretary.
Subsection (h) directs that new rental charges be phased in
over a five-year period for areas where the new rental charge
results in an increase greater than one-half of 1 percent of
the permittee's adjusted gross revenue.
Subsection (i) states that the reissuance of a ski area
permit to provide activities similar in nature and amount to
those activities currently being provided at the ski area does
not constitute a major Federal action under the National
Environmental Policy Act.
Section 2. Withdrawals
Subsection 2 withdraws lands under a ski area permit from
appropriation under mining, mineral leasing and geothermal
leasing laws for the full term of the permit and its
modification, reissuance, or renewal. It further provides that,
unless requested by the Secretary, the withdrawal shall
terminate automatically upon expiration or termination of the
permit and the land be available for all uses not otherwise
restricted under the public land laws.
COMMITTEE OVERSIGHT FINDINGS AND RECOMMENDATIONS
With respect to the requirements of clause 2(l)(3)(A) of
rule XI of the Rules of the House of Representatives, and
clause 2(b)(1) of rule X of the Rules of the House of
Representatives, the Subcommittee on National Parks, Forests
and Lands of the Committee on Resources held hearings on July
25, 1995, and the oversight findings and recommendations of the
Committee on Resources are reflected in this report.
INFLATIONARY IMPACT STATEMENT
Pursuant to clause 2(l)(4) of rule XI of the Rules of the
House of Representatives, the Committee estimates that the
enactment of H.R. 1527 will have no significant inflationary
impact on prices and costs in the operation of the national
economy.
COST OF THE LEGISLATION
Clause 7(a) of rule XIII of the Rules of the House of
Representatives requires an estimate and comparison by the
Committee of the costs which would be incurred in carrying out
H.R. 1527. However, clause 7(d) of that Rule provides that this
requirement does not apply when the Committee has included in
its report a timely submitted cost estimate of the bill
prepared by the Director of the Congressional Budget Office
under section 403 of the Congressional Budget Act of 1974.
COMPLIANCE WITH HOUSE RULE XI
1. With respect to the requirement of clause 2(l)(3)(B) of
rule XI of the Rules of the House of Representatives and
section 308(a) of the Congressional Budget Act of 1974, H.R.
1527 does not contain any new budget authority, credit
authority, or an increase or decrease in tax expenditures. If
enacted, H.R. 1527 would raise offsetting receipts from rental
charges in fiscal years 1996, 1997 and 1998, but lower
offsetting receipts in fiscal year 1999 and beyond. In
addition, H.R. 1527 would have a small impact on discretionary
spending for administering ski permits.
2. With respect to the requirement of clause 2(l)(3)(D) of
rule XI of the Rules of the House of Representatives, the
Committee has received no report of oversight findings and
recommendations from the Committee on Government Reform and
Oversight on the subject of H.R. 1527.
3. With respect to the requirement of clause 2(l)(3)(C) of
rule XI of the Rules of the House of Representatives and
section 403 of the Congressional Budget Act of 1974, the
Committee has received the following cost estimate for H.R.
1527 from the Director of the Congressional Budget Office.
U.S. Congress,
Congressional Budget Office,
Washington, DC, March 19, 1996.
Hon. Don Young,
Chairman, Committee on Resources,
House of Representatives, Washington, DC.
Dear Mr. Chairman: The Congressional Budget Office has
prepared the enclosed cost estimate for H.R. 1527, a bill to
further clarify the authorities and duties of the Secretary of
Agriculture in issuing ski area permits on National Forest
Service lands and to withdraw lands within ski area permit
boundaries from the operation of mining and mineral leasing
laws.
Enactment of H.R. 1527 would affect direct spending;
therefore, pay-as-you-go procedures would apply.
If you wish further details on this estimate, we will be
pleased to provide them.
Sincerely,
June E. O'Neill, Director.
congressional budget office cost estimate
1. Bill number: H.R. 1527.
2. Bill title: 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 mining
and mineral leasing laws.
3. Bill status: As ordered reported by the House Committee
on Resources on March 13, 1996.
4. Bill purpose: H.R. 1527 would revise the method of
assessing rental charges for permits issued to ski area
operators for use of National Forest System lands. The bill
also would remove all lands located within the boundaries of
ski area permits from all forms of mining during the term of
the permits.
5. Estimated cost to the Federal Government: Under current
law, approximately 140 ski areas that operate on Forest System
lands pay fees totaling about $18 million a year. Enacting H.R.
1527 would change the level of fee collections slightly. CBO
estimates that enacting the bill would affect direct spending
by raising additional offsetting receipts from rental charges
in fiscal years 1996, 1997, and 1998, and by lowering
offsetting receipts in fiscal year 1999 and thereafter, as
shown in the following table.
----------------------------------------------------------------------------------------------------------------
1996 1997 1998 1999 2000
----------------------------------------------------------------------------------------------------------------
CHANGES IN DIRECT SPENDING
Estimated budget authority......................................... (\1\) -1 -1 (\1\) (\1\)
Estimated outlays.................................................. (\1\) -1 -1 (\1\) (\1\)
----------------------------------------------------------------------------------------------------------------
\1\ Less than $500,000.
In addition, the bill would have a small impact on
discretionary spending for administering ski permits, but we
estimate that such changes would be less than $500,000 a year.
The costs of this bill fall within budget function 300.
6. Basis of estimate: Direct Spending. Enacting H.R. 1527
would revise the method of assessing rental charges for permits
issued to ski areas for use of National Forest System lands.
Rental charges under the proposed system would be assessed
using a system of four revenue brackets, whereby ski areas with
large revenues would pay a higher percentage of their revenues
in rental charges than areas with smaller revenues. The bill
would establish assessment rates rising from 1.5 percent for
the first $3 million of an area's revenues to 4 percent for any
revenues above $50 million. The bill's revenue brackets would
be adjusted annually for inflation.
Under current law, permit fees for ski areas on Forest
Service lands are calculated under the Graduated Rate fee
System (GRFS), under which fees are based on each area's
revenues and the value of its fixed assets. The proposed rental
charge system would be based on gross revenues without any
deductions for asset value, and would apply to all ski areas
with permits issued pursuant to the National Forest Ski Permit
Act of 1986. Ski areas with pre-1986 permits could choose
whether to have their fee calculated using the proposed new
method or to remain under the current system.
Depending on their revenues, some ski areas would pay less
under the proposed new method of calculating rental charges
than they pay now under GRFS, and some would pay more. To
ensure that the government receives higher rental payments
during the transition from the current fee system, the bill
provides that the rental charge paid by any individual
permittee for the current and next two permit years shall be
either the amount charged last year or the rental charge
calculated under the new fee system, whichever is higher. If a
permittee's gross revenues fall by more than 10 percent during
the three transition years, then the rental charge would be
calculated based on the new calculation method. If the new
method of calculation would result in a fee increasing by more
than 0.5 percent of the permittee's adjusted gross revenue,
then the rental charge increase would be phased in over five
years.
CBO assumes that all ski areas with pre-1986 permits would
select the new method of calculating rental charges if their
rental charge would be lower than under the current system once
the transition period ends. We also assume that many ski areas
would choose the new system even if the new charges were
slightly higher than under the current system because such
increases would be offset by reduced administrative costs for
the areas.
Based on information from the Forest Service and the
General Accounting Office, we estimate that enacting H.R. 1527
would result in higher offsetting receipts from rental charges
during the three-year transition period since the bill
establishes a floor below which rental charges could not fall.
Because offsetting receipts appear in the budget as negative
outlays, the bill would have the effect of decreasing outlays
in the first three years. Next of the required payment to
states, we estimate that federal outlays would decrease by less
than $500,000 in fiscal year 1996 and by about $1 million in
each of fiscal years 1997 and 1998. Beginning in fiscal year
1999, the floor for receipt levels would be removed. We
estimate that receipts from rental charges would decrease
relative to current law from that point forward, but that the
resulting increase in outlays would be less than $500,000 per
year.
Discretionary Spending. The new system of rental charges
would be easier for the Fort Service to administer than the
current GRFS. Hence, it would eventually reduce the need for
appropriations to the Forest Service for the costs of audits,
accounting, and fee assessment appeals by ski areas. Based on
information from the Forest Service, CBO estimates that
enacting H.R. 1527 would increase administrative costs during
the first two years--during the transition to the new system--
but would reduce administrative costs thereafter. CBO estimates
that any change in administrative costs would be less than
$500,000 per year.
The bill's provision for withdrawing ski permit lands from
mining use would not have any significant effect on federal
expenditures or receipts.
7. Pay-as-you-go considerations: Section 252 of the
Balanced Budget and Emergency Deficit Control Act of 1985 sets
up pay-as-you-go procedures for legislation affecting direct
spending or receipts through 1998. CBO estimates that enacting
H.R. 1527 would affect direct spending over the 1996-1998
period by increasing offsetting receipts from ski permit fees.
Therefore, pay-as-you-go procedures would apply to the bill.
------------------------------------------------------------------------
1996 1997 1998
------------------------------------------------------------------------
Change in outlays............................ 0 -1 -1
Change in receipts........................... NA NA NA
------------------------------------------------------------------------
8. Estimated impact on State, local, and tribal
governments: H.R. 1527 contains no intergovernmental mandates
as defined in Public Law 104-4. The bill would, however, affect
payments to states with Forest Service ski areas within their
borders because states receive 25 percent of receipts from ski
permit fees. CBO estimates that, in total, states would receive
about $200,000 more in each of fiscal years 1996 through 1998
and about $50,000 less in each fiscal year after 1998. This
change would affect 15 states, mostly in the West.
9. Estimated impact on the private sector: The bill would
impose no new private sector mandates, as defined in Public Law
104-4.
10. Previous CBO estimate: None.
11. Estimate prepared by: Federal Cost Estimate: Victoria
V. Heid. State and Local Government Impact: Marjorie Miller.
Private Sector Impact: Amy Downs.
12. Estimate approved by: Paul N. Van de Water, Assistant
Director for Budget Analysis.
COMPLIANCE WITH PUBLIC LAW 104-4
H.R. 1527 contains no unfunded mandates.
CHANGES IN EXISTING LAW
If enacted, H.R. 1527 would make no changes in existing
law.
DEPARTMENTAL REPORTS
The Committee has received no departmental reports on H.R.
1527.
A P P E N D I X
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House of Representatives,
Committee on Resources,
Washington, DC, March 18, 1996.
Hon. Pat Roberts,
Chairman, Committee on Agriculture,
Washington, DC.
Dear Mr. Chairman: I ask your cooperation to help schedule
an early consideration by the House of Representatives of H.R.
1527, to amend the National Forest Ski Area Permit Act of 1986
to clarify the authorities and the 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.
H.R. 1527 was referred primarily to the Committee on
Resources and secondarily to your Committee based on the
Agriculture Committee's jurisdiction over forestry in general,
and forests reserves other than those created from the public
domain. The purpose of H.R. 1527 is to replace the existing,
antiquated system for charging fees for the 140 ski area
permits on Forest Service lands with a new system which is
simpler to administer and generates additional revenue to the
Treasury. As you can see from the enclosed copy, it is
substantially similar to ski area fee provisions included in
the Balanced Budget Act of 1995.
Because the House has already considered this measure, I
ask that the Committee on Agriculture waive its jurisdiction
over this bill to allow us to schedule it for Floor
consideration as soon as possible. This wavier would not be
considered as precedent for any future referrals of similar
measures. Moreover, if the bill is conferenced with the Senate,
I would support naming Agriculture Committee members to the
conference committee.
I look forward to your response and would be pleased to
include it and this letter in the report on H.R. 1527.
Sincerely,
Don Young, Chairman.
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House of Representatives,
Committee on Agriculture,
Washington, DC, March 19, 1996.
Hon. Don Young,
Chairman, Committee on Resources,
Washington, DC.
Dear Mr. Chairman: Thank you for forwarding a copy of H.R.
1527 as ordered reported by your Committee that would amend the
National Forest Ski Area Permit Act of 1986 which contains
matters within the jurisdiction of the Committee on
Agriculture.
The Committee has no objection to the scheduling of the
bill for floor consideration. However, in the event there is a
conference on H.R. 1527 or any similar bill, this Committee
expects to be represented by conferees appointed on matters
within its jurisdiction. For that reason, I am forwarding a
copy of this letter to the Speaker.
As always I look forward to working with you on matters of
mutual interest and would appreciate the exchange of these
letters to be included in the report on H.R. 1527.
Sincerely,
Pat Roberts, Chairman.