[House Report 105-678]
[From the U.S. Government Publishing Office]



105th Congress                                                   Report
                        HOUSE OF REPRESENTATIVES

 2d Session                                                     105-678
_______________________________________________________________________


 
 PERMITS AND FEES FOR COMMERCIAL MEDIA PRODUCTION ON DEPARTMENT OF THE 
                             INTERIOR LANDS

_______________________________________________________________________


 August 5, 1998.--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. 2993]

      [Including cost estimate of the Congressional Budget Office]

    The Committee on Resources, to whom was referred the bill 
(H.R. 2993) to provide for the collection of fees for the 
making of motion pictures, television productions, and sound 
tracks in National Park System and National Wildlife Refuge 
System units, and for other purposes, having considered the 
same, report favorably thereon with an amendment and recommend 
that the bill as amended do pass.
    The amendment is as follows:
    Strike out all after the enacting clause and insert in lieu 
thereof the following:

SECTION 1. FEE AUTHORITY AND REPEAL OF PROHIBITION.

    (a) Authority.--
          (1) In general.--The Secretary of the Interior (in this 
        section referred to as the ``Secretary'') may permit, under 
        terms and conditions considered necessary by the Secretary, the 
        use of lands and facilities administered by the Secretary for 
        the making of any motion picture, television production, 
        soundtrack, or similar project, for commercial purposes, if the 
        Secretary determines that such use is appropriate and will not 
        impair the values and resources of the lands and facilities.
          (2) Fees.--(A) Any permit under this section shall require 
        the payment of fees to the Secretary in an amount determined to 
        be appropriate by the Secretary sufficient to provide a fair 
        return to the government in accordance with subparagraph (B), 
        except as provided in subparagraph (C). The amount of the fee 
        shall be not less than the direct and indirect costs to the 
        Government for processing the application for the permit and 
        the use of lands and facilities under the permit, including any 
        necessary costs of cleanup and restoration, except as provided 
        in subparagraph (C).
          (B) The authority of the Secretary to establish fees under 
        this paragraph shall include, but not be limited to, authority 
        to issue regulations that establish a schedule of rates for 
        fees under this paragraph based on such factors as--
                  (i) the number of people on site under a permit;
                  (ii) the duration of activities under a permit;
                  (iii) the conduct of activities under a permit in 
                areas designated by statute or regulations as special 
                use areas, including wilderness and research natural 
                areas; and
                  (iv) surface disturbances authorized under a permit.
          (C) The Secretary may, on a case-by-case basis, charge a fee 
        below the amount referred to in subparagraph (A) if the 
        activity for which the fee is charged provides clear 
        educational or interpretive benefits for the Department of the 
        Interior.
          (3) Bonding and insurance.--The Secretary may require a bond, 
        insurance, or such other means as may be necessary to protect 
        the interests of the United States in activities arising under 
        such a permit.
          (4) Regulations.--(A) The Secretary shall issue regulations 
        implementing this subsection by not later than 180 days after 
        the date of the enactment of this Act.
          (B) Within 3 years after the date of enactment of this Act, 
        the Secretary shall review and, as appropriate, revise 
        regulations issued under this paragraph. After that time, the 
        Secretary shall periodically review the regulations and make 
        necessary changes.
  (b) Exemption From Fees.--No fee shall be collected under subsection 
(a) for (A) any bona fide newsreel or news television production or (B) 
still photography, except where the photography involves product or 
service advertisements and the use of models, sets, or props, or when 
such photography could result in damage to park resources or 
significant disruption of normal visitor uses.
  (c) Existing Regulations.--The prohibition on fees set forth in 
paragraph (1) of section 5.1(b) of title 43, Code of Federal 
Regulations, shall cease to apply upon the effective date of 
regulations under subsection (a). Nothing in this section shall be 
construed to affect the regulations set forth in part 5 of such title, 
other than paragraph (1) thereof.
  (d) Proceeds.--Amounts collected as fees under this section shall be 
available for expenditure without further appropriation and shall be 
distributed and used, without fiscal year limitation, in accordance 
with the formula and purposes established for the Recreational Fee 
Demonstration Program under section 315 of Public Law 104-134.
  (e) Penalty.--A person convicted of violating any regulation issued 
under subsection (a) shall be fined in accordance with title 18, United 
States Code, or imprisoned for not more than 6 months, or both, and 
shall be ordered to pay all costs of the proceedings.
  (f) Definition.--For purposes of this section, the term ``commercial 
purposes'' shall have such meaning as the Secretary shall by rule 
prescribe, and shall include, but not be limited to, advertising.
  (g) Effective Date.--This section and the regulations issued under 
this section shall become effective 180 days after the date of the 
enactment of this Act, except that this subsection and the authority of 
the Secretary to issue regulations under this section shall be 
effective on the date of the enactment of this Act.

                          PURPOSE OF THE BILL

    The purpose of H.R. 2993 (as introduced) is to provide for 
the collection of fees for the making of motion pictures, 
television productions, and sound tracks in National Park 
System and National Wildlife Refuge System units, and for other 
purposes.

                  BACKGROUND AND NEED FOR LEGISLATION

    America's public lands have served as the backdrop for many 
of Hollywood's most famous and profitable productions. Prior to 
1948, film makers paid a fee for using public lands, including 
National Parks, based upon a standard rate schedule for that 
use. However, in 1948, the Department of the Interior 
promulgated a regulation which prohibited the collection of 
location fees for filming in National Parks and National 
Wildlife Refuge units. Extensive research, both by this 
Committee and the Interior Department, has failed to determine 
the impetus behind and the justification for that regulation. 
Nonetheless, the National Parks Service and the U.S. Fish and 
Wildlife Service were limited to charging user fees for actual 
personnel expenses.
    The U.S. Forest Service and the Department of the 
Interior's Bureau of Land Management (BLM) currently have in 
place regulatory policies to collect commercial filming fees. 
The Forest Service has the most detailed and accepted policy, 
consisting of negotiated contracts involving a set fee schedule 
based on personnel involved, length of time on location, 
special effects required, and other factors. The BLM policy 
consists of negotiating a special use permit. This process is 
often burdensome to both BLM personnel and the film industry 
because it differs at each location and is not administered 
uniformly. H.R. 2993 would standardize rate schedule criteria 
for all agencies of the Department of the Interior and make the 
commercial filming fee available directly to the unit involved 
in the filming as per guidelines adopted for the Recreational 
Demonstration Fee Program under Public Law 104-134. This 
formula retains 80 percent of the proceeds for maintenance 
needs and the remaining 20 percent is used for system-wide 
maintenance needs.
    H.R. 2993 authorizes the Secretary of the Interior to 
permit the use of lands and facilities administered by agencies 
of the Department of the Interior for the making of any motion 
picture, television production, sound track or similar project 
for commercial purposes, if the Secretary determines such use 
is appropriate and will not impair the values and resources of 
the lands and facilities. The word ``appropriate'' is included 
to ensure this legislation tracks with other fee structures and 
as a common sense guide for the Secretary in issuing permits 
under this bill. The Congressional intent of the word 
``appropriate'' should not be construed by nor does it confer 
rights upon the Secretary for script approval or censorship. 
The word ``appropriate'' means that permits should not be 
issued at sites where filming activity will result in a gross 
disruption of public use of the site. As an example, commercial 
filming should not be permitted on the steps of the Lincoln 
Memorial on the 4th of July.

                            COMMITTEE ACTION

    H.R. 2993 was introduced on November 9, 1997, by 
Congressman Joel Hefley (R-CO). H.R. 2993 was referred to the 
Committee on Resources and, within the Committee, to the 
Subcommittee on National Parks and Public Lands and the 
Subcommittee on Fisheries Conservation, Wildlife and Oceans. On 
February 24, 1998, the National Parks Subcommittee held a 
hearing on H.R. 2993 where John Berry, Assistant Secretary, 
Policy, Management, and Budget, Department of the Interior, 
testified in favor of the measure. On May 21, 1998, the 
National Parks Subcommittee met to consider H.R. 2993. Mr. 
Hefley offered an amendment in the nature of a substitute which 
made minor changes in the text. The amendment was adopted by 
voice vote and the bill was ordered reported, as amended, by 
voice vote to the Full Committee. On June 17, 1998 the Full 
Committee met to consider H.R. 2993. The Subcommittee on 
Fisheries Conservation, Wildlife and Oceans was discharged from 
further consideration of the bill by unanimous consent. Mr. 
Hefley offered four amendments en bloc which addressed several 
issues raised by the Clinton Administration and the minority. 
The amendment was adopted by voice vote. The bill, as amended, 
was then favorably reported to the House of Representatives by 
voice vote.

            COMMITTEE OVERSIGHT FINDINGS AND RECOMMENDATIONS

    With respect to the requirements of clause 2(l)(3) 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 Committee on Resources' oversight findings and 
recommendations are reflected in the body of this report.

                   CONSTITUTIONAL AUTHORITY STATEMENT

    Article I, section 8, and Article IV, section 3 of the 
Constitution of the United States grant Congress the authority 
to enact H.R. 2993.

                        COST OF THE LEGISLATION

    Clause 7(a) of rule XIII of the Rules of the House of 
Representatives requires an estimate and a comparison by the 
Committee of the costs which would be incurred in carrying out 
H.R. 2993. 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. 
2993 does not contain any new budget authority, spending 
authority, credit authority, or an increase or decrease in tax 
expenditures. According to the Congressional Budget Office, 
enactment of H.R. 2993 could affect the federal budget by 
changing collections of offsetting receipts and the use of such 
receipts, but this would be matched by an equal change in 
spending.
    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. 2993.
    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. 
2993 from the Director of the Congressional Budget Office.

                                     U.S. Congress,
                               Congressional Budget Office,
                                     Washington, DC, July 31, 1998.
Hon. Don Young,
Chairman, Committee on Resources,
U.S. House of Representatives, Washington, DC.
    Dear Mr. Chairman: The Congressional Budget Office has 
prepared the enclosed cost estimate for H.R. 2993, a bill to 
provide for the collection of fees for the making of motion 
pictures, television productions, and sound tracks in National 
Park System and National Wildlife Refuge System units.
    If you wish further details on this estimate, we will be 
pleased to provide them. The CBO staff contacts are Deborah 
Reis and Joanna Wilson.
            Sincerely,
                                              James L. Blum
                                   (For June E. O'Neill, Director).

               congressional budget office cost estimate

H.R. 2993.--A bill to provide for the collection of fees for the making 
        of motion pictures, television productions, and sound tracks in 
        National Park System and National Wildlife Refuge System units

    Summary.--H.R. 2993 would direct the Secretary of the 
Interior to establish fees for commercial filming and similar 
activities conducted on public lands, and would authorize 
agencies within the Department of the Interior (DOI) to retain 
and spend without further appropriation any resulting receipts. 
The Secretary would develop regulations to establish a schedule 
of rates, which would be based on factors such as the number of 
persons on site and the duration of filming. The bill would 
authorize the Secretary to reduce fees if the activity provides 
clear educational benefits for the department and would exempt 
from any fees newsreels, television news productions, and some 
commercial photography.
    CBO expects that enacting H.R. 2993 could affect the 
federal budget by changing collections of offsetting receipts 
and the use of such receipts; therefore, pay-as-you-go 
procedures would apply. Any change in offsetting receipts would 
be matched by an equal change in spending, though not 
necessarily in the same fiscal year, resulting in no net impact 
on direct spending over time. CBO estimates that any increases 
or decreases in offsetting receipts would probably be at most a 
few million dollars a year. The bill contains no 
intergovernmental or private-sector mandates as defined in 
Unfunded Mandates Reform Act (UMRA) and would not affect the 
budgets of state, local, or tribal governments.
    Commercial filming on public lands under current law.--
Under current law, the Forest Service (which is in the 
Department of Agriculture) and most land management agencies 
within DOI already allow commercial filming and similar 
activities on lands they administer. The vast majority of films 
made on these lands are commercials or other short-duration 
projects, such as still photography; only a handful made each 
year are full-length feature films. All of the land management 
agencies are allowed to charge some fees for filming on public 
lands, but the rates they are allowed to charge, the basis of 
those charges, and the rules governing spending of the 
resulting proceeds vary widely.
    The Forest Service (which is authorized to set market-value 
rates for filming in national forests) charges up to $600 per 
day for the 1,500 to 2,000 permits it issues annually. The 
Forest Service collected an average of about $400,000 over the 
last three years from such fees, which it returned to the 
general fund of the Treasury. The agency also may charge a $200 
application fee and may recover other direct costs, if any. The 
Bureau of Land Management (BLM) has authority similar to that 
of the Forest Service and charges between $100 and $750 per day 
as a land rental fee. Receipts from rentals are returned to the 
Treasury, but the agency is allowed to retain and spend 
additional fees collected for processing applications and for 
cost reimbursement. In the few instances where the agency 
imposes such additional fees, they range from $200 to $1,000 
per application. BLM issues between 300 and 400 applications 
annually, which CBO estimates earn the federal government less 
than $100,000 a year in total.
    The National Park Service (NPS) and the U.S. Fish and 
Wildlife Service (USFWS) are more limited in their authority to 
charge fees because they may not impose fees that are greater 
than the amounts necessary to cover the cost of processing of 
applications and the direct costs of activities attributable to 
the filming, such as on-site monitoring. After the Forest 
Service, the NPS issues the most filming permits--over 900 for 
each of the last three years. On average over this period, the 
NPS earned $1 million or less per year, or about $1,000 per 
film, which includes application fees and cost reimbursements 
as well as small donations (about $50 per film). All of these 
amounts were retained and spent by the agency. The USFWS, which 
currently issues fewer than 100 permits per year, imposes no 
charge for processing applications or cost recovery.
    Estimated cost to the Federal Government.--CBO cannot 
estimate the amount of offsetting receipts that would be earned 
from enacting the new authorities contained in H.R. 2993. 
Nevertheless, because the bill also provides authority to spend 
whatever new receipts are earned, we estimate that enacting the 
bill would have no significant net impact on the federal budget 
over the next several years.
    The major potential budgetary impact of the bill would be 
on the NPS, but because the bill's effect would depend on many 
behavioral factors that cannot be predicted with confidence, it 
is difficult to estimate how much the NPS would earn and spend 
under H.R. 2993. Basedon information provided by that agency, 
we expect that it would most likely follow the fee structure used by 
the Forest Service. It is not clear whether adopting this structure 
would result in any additional receipts. If fact, based on the limited 
information available, it appears that the NPS already earns more on 
commercial filming than the Forest Service--on fewer permits. The most 
likely reasons for this is the relatively high amounts collected by the 
NPS as cost recovery, probably because filming on NPS sites generally 
requires more monitoring and agency resources. (In contrast, the Forest 
Service seldom provides much on-site assistance). It is also possible 
that longer, more personnel-intensive films are shot at NPS sites or 
that agency waives fees less often than Forest Service does for 
educational films.
    The NPS might earn additional fee receipts under H.R. 2993 
because the new authority to increase rates over actual costs, 
and the incentive provided by allowing money to be spent 
without appropriation, may induce the agency to promote filming 
on its lands. In addition, adopting the Forest Service fee 
schedule would probably result in higher fees on some films 
because the NPS could add up to $600 per day to the amounts it 
already charges for processing applications and recovering 
other direct costs. It is also possible, however, that the 
agency would lose some collections if it raises its fees 
because the number of films made in park units could drop in 
response. In either case, CBO does not expect the impact on 
receipts to be great. The most the agency could lose is the $1 
million that it now collects each year. Potential gains could 
be more, but we estimate that they would total no more than a 
few million dollars a year.
    It is possible that the bill would have little or no impact 
on NPS filming activities, particularly if other, nonmonetary 
factors do not change. For example, the film industry has 
indicated that an important factor in its choice of filming 
sites is agency cooperation. As a result, many film makers use 
Forest Service or nonfederal lands rather than NPS sites 
because applications are processed more quickly and their 
presence is more readily accepted. Thus, the industry may 
continue to use lands administered by the Forest Service (whose 
rates could be considerably lower than those of the NPS under 
the bill) or owned by private parties or other governmental 
entities (some of whom presently charge more than any federal 
agency).
    CBO expects that the bill would have little effect on the 
budget of the USFWS because that agency, which would be very 
likely to charge fees once it has the authority to do so, would 
probably not promote more filming on its lands for 
environmental reasons. We also expect that the bill would have 
little impact on BLM, which would be allowed to retain receipts 
from land rentals that currently are returned to the Treasury. 
BLM already charges fees that are close to those that the 
Forest Service now charges or that the NPS would charge under 
the bill. BLM would be unlikely to increase its rates under the 
bill because higher fees would be uncompetitive. Spending the 
portion of the $100,000 a year it now returns to the Treasury 
would not have any significant impact. Finally, H.R. 1993 would 
have no effect on the Forest Service, which is excluded from 
the bill's provisions.
    This estimate is based on information obtained from the 
Association of Independent Commercial Producers, the Motion 
Picture Association, and federal agencies, including DOI, the 
Forest Service, the NPS, BLM, and USFWS.
    Pay-as-you-go-considerations.--The Balanced Budget and 
Emergency Deficit Control Act sets up pay-as-you-go procedures 
for legislation affecting direct spending or receipts. H.R. 
2993 would probably affect direct spending but CBO cannot 
estimate the amount of new offsetting receipts and spending 
that would result from enacting this bill. CBO estimates that 
the net impact on direct spending would be negligible over the 
next several years.
    Intergovernmental and private-sector impact.--H.R. 2993 
contains no intergovernmental or private-sector mandates as 
defined in UMRA and would not affect the budgets of state, 
local, or tribal governments.
    Estimate prepared by.--Deborah Reis and Joanna Wilson.
    Estimate approved by.--Robert A. Sunshine, Deputy Assistant 
Director for Budget Analysis.

                    compliance with public law 104-4

    H.R. 2993 contains no unfunded mandates.

                        changes in existing law

    If enacted, H.R. 2993 would make no changes to existing 
law.

                                
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