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[House Report 106-75]
[From the U.S. Government Publishing Office]

106th Congress                                                   Report
  1st Session           HOUSE OF REPRESENTATIVES                 106-75

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PROVIDING 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

                                _______
                                

 March 23, 1999.--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. 154]

      [Including cost estimate of the Congressional Budget Office]

  The Committee on Resources, to whom was referred the bill 
(H.R. 154) 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, if the Secretary determines 
        that such use is appropriate and will neither impair the values 
        and resources of the lands and facilities nor result in a 
        significant disruption of normal visitor uses.
          (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, under the terms of the regulations 
        promulgated under paragraph (4), 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) Collection of Fees.--Fees shall be collected under subsection (a) 
whenever the proposed filming, videotaping, sound recording, or still 
photography involves product or service advertisements, or the use of 
models, actors, sets, or props, or when such filming, videotaping, 
sound recording, or still photography could result in damage to 
resources or significant disruption of normal visitor uses. Filming, 
videotaping, sound recording or still photography, including bona fide 
newsreel or news television film gathering, which does not involve the 
activities or impacts identified herein, shall be permitted without 
fee.
  (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) 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. 154 is to provide for the collection of 
fees for motion pictures, television productions, and sound 
tracks in National Park System and National Wildlife Refuge 
System units.

                  BACKGROUND AND NEED FOR LEGISLATION

    America's public lands have been serving as the backdrop 
for many of Hollywood's most famous and profitable productions 
for decades. Popular park units such as Arches National Park, 
Yosemite National Park, and the National Capital Region have 
served as the setting of numerous films which have grossed, in 
total, hundreds of millions of dollars. At the present time, 
however, the National Park Service and the U.S. Fish and 
Wildlife Service are prohibited by regulation from establishing 
fair and reasonable fees from commercial film companies for the 
use of the resources they manage for the enjoyment of the 
American people. These agencies can charge a user fee for 
actual personnel expenses, but not a so-called location or 
land-use fee.
    The U.S. Forest Service already has in place a regulatory 
policy to collect commercial filming fees. The Forest Service 
has a 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. Similarly, this bill would standardize the 
collection of commercial film fees by agencies within the 
Department of Interior.
    H.R. 154 repeals the existing regulatory prohibition on 
collecting fees for commercial film productions on lands 
administered by the Department of the Interior, including units 
of the National Park System and National Wildlife Refuge Areas. 
In addition, H.R. 154 authorizes the Secretary to establish a 
fee schedule using a number of relevant factors, such as the 
number of people on site, the use of lands with special 
designations, and the duration of the filming activities. The 
bill would not affect newsreel or television news activities. 
Proceeds from these location fees would remain in the unit 
where the filming occurs as per Public Law 104-134.
    An amendment was offered by Congressman Joel Hefley at Full 
Committee markup which clarifies language in section 1(a)(1) of 
H.R. 154. The amendment further clarified the intent as to when 
it is appropriate to use lands for activities authorized by 
H.R. 154. In essence, the amendment gives the Secretary of the 
Interior the added discretion to consider whether the activity 
results in a significant disruption of normal visitor uses when 
issuing a permit. However, it is the clear intent of the 
Committee that ``significant disruption'' means that the 
activity must be a major interference or excessive disturbance 
of regular visitor uses. This standard is meant to have a high 
threshold. It is the intention of the Committee that minor and 
temporary inconveniences for park visitors caused by activities 
authorized by H.R. 154 shall not be considered a ``significant 
disruption'' insofar as obtaining a permit for such activities.
    Furthermore, the Committee is aware that the term 
``appropriate'' as used in section 1(a)(1) has caused some 
concern. The Committee wants to make it perfectly clear and 
emphasizes without ambiguity that the term ``appropriate'' is 
not to be construed or used in any manner as an authorization 
by the Secretary for script approval. Rather, the Committee's 
intent of the term ``appropriate'' should be viewed by the 
Secretary in the context of the impairment of the values and 
resources which are to be protected on federal lands where 
these activities occur.
    Because commercial advertising photographers and film 
production companies frequently need permits to be approved 
quickly, it is the intent of the Committee that the Secretary 
take into consideration the particular timeliness of a 
production in processing the applications and should approve 
permits authorized in H.R. 154 in the shortest time period 
possible and appropriate.

                            COMMITTEE ACTION

    H.R. 154 was introduced on January 6, 1999, by Congressman 
Joel Hefley (R-CO). The bill 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 4, 
1999, the National Parks Subcommittee held a hearing on H.R. 
154 where Stephen Saunders, Deputy Assistant Secretary for 
Fish, Wildlife, and Parks for the Department of the Interior, 
testified in favor the bill. On February 25, 1999, the 
Subcommittee met to consider the bill. No amendments were 
offered and the bill was ordered favorably reported to the Full 
Resource Committee by voice vote. On March 3, 1999, the Full 
Resource Committee met to consider H.R. 154. An amendment was 
offered by Congressman Hefley as described earlier which was 
adopted by voice vote. The bill, as amended, was then ordered 
favorably reported to the House of Representatives by voice 
vote.

            COMMITTEE OVERSIGHT FINDINGS AND RECOMMENDATIONS

    Regarding clause 2(b)(1) of rule X and clause 3(c)(1) of 
rule XIII 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 this bill.

                    COMPLIANCE WITH HOUSE RULE XIII

    1. Cost of Legislation. Clause 3(d)(2) 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 this bill. However, clause 3(d)(3)(B) 
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 402 of the 
Congressional Budget Act of 1974.
    2. Congressional Budget Act. As required by clause 3(c)(2) 
of rule XIII of the Rules of the House of Representatives and 
section 308(a) of the Congressional Budget Act of 1974, this 
bill does not contain any new budget authority, credit 
authority, or an increase or decrease in tax expenditures. 
Enactment of H.R. 154 could affect the federal budget by 
changing collections ofoffsetting receipts and the use of these 
receipts. According to the Congressional Budget Office, any change in 
offsetting receipts would be matched by an equal change in spending, 
resulting in no net change in direct spending.
    3. Government Reform Oversight Findings. Under clause 
3(c)(4) of rule XIII 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 on this bill.
    4. Congressional Budget Office Cost Estimate. Under clause 
3(c)(3) of rule XIII 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 this bill from the Director of the Congressional Budget 
Office:

                                     U.S. Congress,
                               Congressional Budget Office,
                                    Washington, DC, March 19, 1999.
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. 154, 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 contact is Deborah Reis.
            Sincerely,
                                          Barry B. Anderson
                                    (For Dan L. Grippen, Director).
    Enclosure.

H.R. 154--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. 154 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. 154 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 in 
the long term. 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 budget 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 madeeach year are full-length 
feature films. All of the federal 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 annually 
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 
under the new authorities contained in H.R. 154. Nevertheless, 
because the bill also would allow the agencies 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 the bill's effect would depend on many 
behavioral factors that cannot be predicted with confidence, 
and it is therefore difficult to estimate how much the NPS 
would earn and spend under H.R. 154.
    Based on 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. In 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 reason 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 the agency waives fees less often than 
Forest Service does for educational films.
    The NPS might earn additional fee receipts under H.R. 154 
because the new authority to charge rates that exceed actual 
costs, and the incentive provided by allowing more 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 part 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 wouldbe 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. 154 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 Balances Budget and 
Emergency Deficit Control Act sets up pay-as-you-go procedures 
for legislation affecting direct spending or receipts. H.R. 154 
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 neglible over the next 
several years.
    Intergovernmental and private-sector impact: H.R. 154 
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.
    Estimate approved by: Robert A. Sunshine, Deputy Assistant 
Director for Budget Analysis.

                    COMPLIANCE WITH PUBLIC LAW 104-4

    This bill contains no unfunded mandates.

                        CHANGES IN EXISTING LAW

    If enacted, this bill would make no changes in existing 
law.

                                
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