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[House Report 111-604]
[From the U.S. Government Publishing Office]

111th Congress                                                   Report
                        HOUSE OF REPRESENTATIVES
 2d Session                                                     111-604

======================================================================

 
                         CABIN FEE ACT OF 2010

                                _______
                                

 September 16, 2010.--Committed to the Committee of the Whole House on 
            the State of the Union and ordered to be printed

                                _______
                                

  Mr. Rahall, from the Committee on Natural Resources, submitted the 
                               following

                              R E P O R T

                             together with

                            ADDITIONAL VIEWS

                        [To accompany H.R. 4888]

      [Including cost estimate of the Congressional Budget Office]

  The Committee on Natural Resources, to whom was referred the 
bill (H.R. 4888) to revise the Forest Service Recreation 
Residence Program as it applies to units of the National Forest 
System derived from the public domain by implementing a simple, 
equitable, and predictable procedure for determining cabin user 
fees, 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 all after the enacting clause and insert the 
following:

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

  (a) Short Title.--This Act may be cited as the ``Cabin Fee Act of 
2010''.
  (b) Table of Contents.--The table of contents for this Act is as 
follows:

Sec. 1. Short title; table of contents.
Sec. 2. Definitions.
Sec. 3. Cabin user fees.
Sec. 4. Cabin transfer fees.
Sec. 5. Allocation of cabin user fee and cabin transfer fee revenue.
Sec. 6. Right of appeal and judicial review.
Sec. 7. Consistency with other law and rights.
Sec. 8. Regulations.

SEC. 2. DEFINITIONS.

  In this Act:
          (1) Authorization.--The terms ``authorized'' and 
        ``authorization'' refer to the issuance of a special use permit 
        for the use and occupancy of National Forest System land 
        derived from the public domain by a cabin owner under the 
        Recreation Residence Program.
          (2) Cabin.--The term ``cabin'' means a privately built and 
        owned recreation residence and related improvements on National 
        Forest System land derived from the public domain that is 
        authorized for private use and occupancy and may be sold or 
        transferred between private parties.
          (3) Cabin owner.--The term ``cabin owner'' means--
                  (A) a person authorized by the Secretary to use and 
                to occupy a cabin on National Forest System land 
                derived from the public domain; and
                  (B) a trust or an heir or assigns of such a person.
          (4) Cabin transfer fee.--The term ``cabin transfer fee'' 
        means a fee paid to the United States upon the transfer of a 
        cabin between private parties for money or other consideration 
        that also includes issuance of a new permit.
          (5) Cabin user fee.--The term ``cabin user fee'' means an 
        annual fee paid to the United States by a cabin owner pursuant 
        to an authorization for the use and occupancy of a cabin on 
        National Forest System land derived from the public domain.
          (6) Current cabin user fee.--The term ``current cabin user 
        fee'' means the most recent cabin user fee, which results from 
        an annual adjustment to the prior cabin user fee under section 
        3(d).
          (7) Lot.--The term ``lot'' means a parcel of National Forest 
        System land derived from the public domain on which a person is 
        authorized to build, use, occupy, and maintain a cabin.
          (8) National forest system land.--The term ``National Forest 
        System land'' is limited to National Forest System land derived 
        from the public domain.
          (9) Recreation residence program.--The term ``Recreation 
        Residence Program'' means the Recreation Residence Program 
        established pursuant to the last paragraph under the heading 
        ``FOREST SERVICE'' in the Act of March 4, 1915 (38 Stat. 1101, 
        chapter 144; 16 U.S.C. 497).
          (10) Secretary.--The term ``Secretary'' means the Secretary 
        of Agriculture, acting through the Chief of the Forest Service.
          (11) Typical lot.--The term ``typical lot'' means a cabin 
        lot, or group of cabin lots, in a tract that is selected for 
        use in an appraisal as being representative of, and that has 
        similar value characteristics as, other lots or groups of lots 
        within the tract.

SEC. 3. CABIN USER FEES.

  (a) Payment of Cabin User Fees.--
          (1) Annual payment.--A cabin user fee shall be paid annually 
        by the cabin owner.
          (2) Installments.--Payment of the cabin user fee for a year 
        may be made in two installments.
  (b) Initial Cabin User Fees.--
          (1) Establishment.--The Secretary shall establish initial 
        cabin user fees in the manner required by this subsection.
          (2) Assignment to value tiers.--Upon completion of the 
        current appraisal cycle, as required by paragraph (4), the 
        Secretary shall assign each permitted lot on National Forest 
        System land to one of five tiers based on the following:
                  (A) All appraised lot values shall be adjusted, or 
                normalized, for price changes from its date of value 
                according to the national NAHB/Wells Fargo Housing 
                Opportunity Index prior to tier assignment.
                  (B) The tiers shall be established according to 
                relative lot value, using all fully completed appraisal 
                data with lots having the lowest adjusted appraised 
                value assigned to Tier 1 and lots having the highest 
                adjusted appraised value assigned to Tier 5.
                  (C) The number of lots (by percentage) assigned to 
                each tier is specified in the table contained in 
                paragraph (3).
                  (D) Data from incomplete appraisals may not be used 
                to establish the fee tiers.
                  (E) Until assigned to a tier, permitted cabin lots, 
                including lots with incomplete appraisals, are assigned 
                an interim fee of $4000 or their current annual fee, 
                indexed in accordance with subsection (d), whichever is 
                less.
          (3) Table of initial cabin user fees.--The initial cabin user 
        fees, based on the assignments made by the Secretary under 
        paragraph (2) are as follows:

------------------------------------------------------------------------
                          Approximate Percent of
        Fee Tier            Permits Nationally          Fee Amount
------------------------------------------------------------------------
               Tier 1                      10%                     $500
------------------------------------------------------------------------
               Tier 2                      35%                   $1,000
------------------------------------------------------------------------
               Tier 3                      40%                   $2,000
------------------------------------------------------------------------
               Tier 4                      10%                   $3,000
------------------------------------------------------------------------
               Tier 5                       5%                  $4,000.
------------------------------------------------------------------------

          (4) Deadline for completion of current appraisal cycle.--The 
        Secretary shall complete the current appraisal cycle within 
        three years after the date of the enactment of this Act.
          (5) Effective date.--The initial cabin user fees required by 
        this subsection shall take effect beginning with the first 
        calendar year beginning after the completion of the current 
        appraisal cycle.
  (c) Overpayments or Underpayments.--If, upon assignment to a tier 
under subsection (b), the Secretary determines that the fee charged to 
a cabin owner during the preceding three years resulted in an 
overpayment or underpayment totaling more than $500, the fee for the 
next three years shall be adjusted, if such a fee adjustment is 
requested by the Secretary or by the affected cabin owner, as necessary 
to correct the overpayment or underpayment.
  (d) Annual Adjustments of Cabin User Fee.--The Secretary shall use 
changes in the Implicit Price Deflator for the Gross Domestic Product 
published by the Bureau of Economic Analysis of the Department of 
Commerce, applied on a five-year rolling average, to determine and 
apply an annual adjustment to cabin user fees.
  (e) Effect of Destruction, Substantial Damage, or Loss of Access.--If 
a cabin is destroyed or suffers substantial damage amounting to greater 
than 50 percent of replacement cost, or if access to a cabin is 
significantly impaired, whether by catastrophic events, natural causes 
or governmental actions, such that the cabin is rendered unsafe or 
unable to be occupied as a result, the Secretary shall reduce the cabin 
user fee for the affected lot to $100 per year. This fee shall be in 
effect for the remainder of the year in which the destruction occurs 
and until such time as the cabin may be lawfully reoccupied and normal 
access has been restored.

SEC. 4. CABIN TRANSFER FEES.

  (a) Payment of Cabin Transfer Fees.--In conjunction with the transfer 
of ownership of any cabin and the issuance of a new permit, the 
transferor shall file with the Secretary a sworn statement declaring 
the amount of money or other value received, if any, for the transfer 
of the cabin. As a condition of the issuance by the Secretary of a new 
authorization for the use and occupancy of the cabin, the transferor 
shall pay, or cause to be paid, to the Secretary a cabin transfer fee 
in an amount determined as follows:

----------------------------------------------------------------------------------------------------------------
           Consideration Received by Transfer                              Transfer Fee Amount
----------------------------------------------------------------------------------------------------------------
$0 to $250,000                                           $1,000
----------------------------------------------------------------------------------------------------------------
$250,000.01 to $500,000.00                               $1,000 plus 5% of consideration in excess of $250,000
                                                          up to $500,000
----------------------------------------------------------------------------------------------------------------
$500,000.01 and above                                    $1,000 plus 5% of consideration in excess of $250,000
                                                          up to $500,000 plus 10% of consideration in excess of
                                                          $500,000.
----------------------------------------------------------------------------------------------------------------

  (b) Index.--The Secretary shall use changes in the Implicit Price 
Deflator for the Gross Domestic Product published by the Bureau of 
Economic Analysis of the Department of Commerce, applied on a five-year 
rolling average, to determine and apply an annual adjustment to the 
cabin transfer fee threshold amounts ($250,000.01 and $500,000.01) set 
forth in the table contained in subsection (a).

SEC. 5. ALLOCATION OF CABIN USER FEE AND CABIN TRANSFER FEE REVENUE.

  (a) Retained Fees to Cover Costs.--Subject to subsection (b), the 
Secretary shall retain the amount of revenue from cabin user fees and 
cabin transfer fees necessary to fully cover the costs incurred by the 
Forest Service to administer the Recreation Residence Program. Revenue 
collected in excess of that amount shall be deposited in the Treasury.
  (b) Limitation.--The total retained by the Secretary under subsection 
(a) for a fiscal year may not exceed $500 per cabin. The Secretary 
shall use changes in the Implicit Price Deflator for the Gross Domestic 
Product published by the Bureau of Economic Analysis of the Department 
of Commerce, applied on a five-year rolling average, to determine and 
apply an annual adjustment to this limitation. Revenue collected from 
cabin user fees and cabin transfer fees in excess of this limitation 
shall be deposited in the Treasury.

SEC. 6. RIGHT OF APPEAL AND JUDICIAL REVIEW.

  (a) Right of Appeal.--Notwithstanding any action of a cabin owner to 
exercise rights in accordance with section 7, the Secretary shall by 
regulation grant the cabin owner the right to an administrative appeal 
of the determination of a new cabin user fee, fee tier, transfer fee, 
or whether or not to reduce a cabin user fee under section 3(e). Such 
appeal shall be pursuant to the appeal process provided under subpart C 
(Appeal of Decisions Relating to Occupancy and Use of National Forest 
System Lands) of part 251 of title 36, Code of Federal Regulations 
(section 251.80 et seq.).
  (b) Judicial Review.--A cabin owner that contests a final decision of 
the Secretary under this Act may bring a civil action in United States 
district court. The venue for actions brought before the United States 
District Court shall be in the United States Judicial District where 
the cabin is located or the permit holder resides. Nothing in this Act 
precludes the parties from seeking mediation.

SEC. 7. 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 
user fee or a condition affecting a cabin user fee that is inconsistent 
with 1303(d) of the Alaska National Interest Lands Conservation Act (16 
U.S.C. 3193(d)).

SEC. 8. REGULATIONS.

  The Secretary shall promulgate regulations to carry out this Act not 
later than the December 31, 2012.

                          PURPOSE OF THE BILL

    The purpose of H.R. 4888 is to revise the Forest Service 
Recreation Residence Program as it applies to units of the 
National Forest System derived from the public domain by 
implementing a simple, equitable, and predictable procedure for 
determining cabin user fees, and for other purposes.

                  BACKGROUND AND NEED FOR LEGISLATION

    In 1915, Congress granted the Forest Service the authority 
to set aside small parcels of land for the construction of 
summer cabins with multi-year occupancy permits. The program, 
known as the Recreation Residence Program, was designed to 
foster opportunities for the public to build a greater 
relationship with the country's national forests. Families were 
responsible for building their own cabins, and they paid the 
Forest Service a permit fee to occupy the land. By the mid-
1960s, the Chief of the Forest Service halted the issuance of 
new permits. However, at the peak of the program, nearly 20,000 
cabins existed. Today, approximately 14,000 cabins remain.
    Congress has repeatedly addressed administrative problems 
with the Recreation Residence Program. In 1969, Congressional 
concern prompted the Forest Service to begin issuing 20-year 
Special Use Permits. A system was also established for 
appraising the value of each cabin lot, considering the 
specific development and use restrictions, and cabin owners 
were required to pay 5% of the appraised value as an annual 
permit fee. In 1994, the Forest Service clarified the process 
by formally publishing the Recreation Residence Policy in the 
Federal Register.
    Cabin owners expressed their concerns to Congress about 
increases in fees and the appraisal process. As a result, 
Congress enacted a specific appraisal policy with the Cabin 
User Fee Fairness Act of 2000 (CUFFA). The law required the 
Forest Service to use the Uniform Standards of Professional 
Appraisal Practice and to use certified appraisers to determine 
the value for the cabins involved in the program. The permit 
fees continued to be based on 5% of the appraised value.
    As the Forest Service implements CUFFA, there is a wide 
range in new cabin user fees. According to the Forest Service, 
75% of owners' annual fees are $4,000 or less. However, 
approximately 5% of owners' annual fees are expected to exceed 
$10,000 per year. These higher fees have triggered a new round 
of concerns from cabin owners who claim they are unable to pay 
the fees and cannot sell their cabins due to the high fees. 
Currently, the Forest Service has used the CUFFA process to 
determine the value of approximately half of all existing 
cabins, and they expect to complete all the appraisals in the 
next three years.
    H.R. 4888 would establish a new system for determining 
annual cabin user fees that would replace the system put in 
place by CUFFA. Under the new system, the Secretary of 
Agriculture would assign each permit issued to a cabin user to 
one of five tiers, based on the appraisal of the cabin on the 
date of enactment of this Act. The Forest Service estimates 
that if CUFFA were fully implemented, the fees generated would 
reach approximately $45 million, but the agency estimates that 
H.R. 4888 would generate approximately $20 million less.

                            COMMITTEE ACTION

    H.R. 4888 was introduced on March 19, 2010 by Natural 
Resources Committee Ranking Member Doc Hastings (R-WA). The 
bill was referred to the Committee on Natural Resources, and 
within the Committee to the Subcommittee on National Parks, 
Forests and Public Lands. On April 22, 2010, the Subcommittee 
held a hearing on the bill at which the Department of 
Agriculture welcomed the opportunity to work with the Committee 
on the legislation and noted several concerns they would like 
to see addressed. Specifically, the Administration would like 
to see the same fee system applied to both National Forest 
System lands reserved from the public domain and lands acquired 
from other ownerships, the fees more accurately reflect market 
value, and no new additional transfer fee.
    On July 22, 2010, the Subcommittee was discharged from 
further consideration of H.R. 4888 and the full Natural 
Resources Committee met to consider the bill. Ranking Member 
Hastings offered an amendment in the nature of a substitute to 
clarify several of the definitions, allow the Forest Service to 
complete the current appraisal process, and detail cabin 
owners' right of appeal and judicial review. The amendment in 
the nature of a substitute was agreed to by unanimous consent. 
The bill, as amended, was then ordered favorably reported to 
the House of Representatives by unanimous consent.

                      SECTION-BY-SECTION ANALYSIS

Section 1. Short title

    Section 1 provides that this Act may be cited as the 
``Cabin Fee Act of 2010''.

Section 2. Definitions

    Section 2 defines the term ``cabin transfer fee'' as the 
fee paid to the United States when a cabin is transferred 
between private parties for money and includes the Forest 
Service issuing a new permit. It also defines the ``cabin user 
fee'' as an annual fee paid by a cabin owner for the use and 
occupancy of a cabin on National Forest System land derived 
from the public domain.

Section 3. Cabin user fees

    Section 3(a) describes the payment of cabin user fees, 
which shall be paid annually by the cabin owner and may be made 
in two installments.
    Section 3(b) outlines the establishment of the initial 
cabin user fees. First the Secretary of Agriculture (Secretary) 
must complete the current appraisal cycle as defined by the 
Cabin User Fee Fairness Act of 2000, which paragraph (4) of 
this subsection provides shall be completed within three years 
of the date of enactment of this Act. Next, the Secretary shall 
assign each cabin to one of five tiers based on several 
factors. All appraisals shall be adjusted from the date of 
value according to the National Association of Home Builders/
Wells Fargo Housing Opportunity Index. Then, tiers will be 
established with lots having the lowest adjusted appraised 
value assigned to Tier 1 and lots having the highest adjusted 
appraised value assigned to Tier 5. The percentage of lots per 
tier is outlined in the following chart:

------------------------------------------------------------------------
                                          Approximate
                                         percentage of
               Fee tier                     permits         Fee amount
                                           nationally
------------------------------------------------------------------------
Tier 1................................              10             $500
Tier 2................................              35            1,000
Tier 3................................              40            2,000
Tier 4................................              10            3,000
Tier 5................................               5            4,000
------------------------------------------------------------------------

    Until assigned to a tier, cabin owners will pay an interim 
fee of either $4000 or their current annual fee adjusted based 
on the Implicit Price Deflator for the Gross Domestic Product 
published by the Bureau of Economic Analysis of the Department 
of Commerce, applied on a five year rolling average, whichever 
is less.
    Section 3(c) provides that if the Secretary determines that 
the fee charged to a cabin owner during the preceding three 
years resulted in an overpayment or underpayment totaling more 
than $500, the fee for the next three years shall be adjusted, 
if such a fee adjustment is requested by the Secretary or the 
cabin owner.
    Section 3(d) provides that the Secretary shall use changes 
in the Implicit Price Deflator for the Gross Domestic Product 
published by the Bureau of Economic Analysis of the Department 
of Commerce, applied on a five-year rolling average, to 
determine annual adjustments to cabin user fees.
    Section 3(e) provides that if a cabin is destroyed or 
suffers substantial damage, the Secretary shall reduce the 
cabin user fee for the affected lot to $100 per year.

Section 4. Cabin transfer fees

    Section 4(a) provides that with the transfer of ownership 
of any cabin and the issuance of a new permit, the transferor 
shall file with the Secretary a statement of the value 
received. Based on the value, the transferor will pay or cause 
to be paid a transfer fee that is $1,000 where the 
consideration is $0 to $250,000, $1,000 plus 5% of 
consideration in excess of $250,000 up to $500,000, or $1,000 
plus 5% of consideration in excess of $250,000 up to $500,000 
plus 10% of consideration in excess of $500,000.
    Section 4(b) identifies the Implicit Price Deflator for the 
Gross Domestic Product published by the Bureau of Economic 
Analysis of the Department of Commerce, applied on a five-year 
rolling average as the index the Secretary shall use to apply 
an annual adjustment to the cabin transfer fee.

Section 5. Allocation of cabin user fee and cabin transfer fee revenue

    Section 5(a) allows the Secretary to retain the amount of 
revenue from cabin user fees and cabin transfer fees necessary 
to cover the costs incurred by the Forest Service to administer 
the Recreation Residence Program. The excess revenue is to be 
deposited in the Treasury.
    Section 5(b) limits the amount the Secretary can retain per 
fiscal year from cabin user fees and cabin transfer fees to 
$500 per cabin. This amount shall be adjusted based on the 
Implicit Price Deflator for the Gross Domestic Product.

Section 6. Right of appeal and judicial review

    Section 6(a) provides that the Secretary shall grant the 
cabin owner the right to an administrative appeal of a new 
cabin user fee, fee tier, transfer fee, and interim fee.
    Section 6(b) provides a cabin owner that contests a final 
decision of the Secretary under this Act the option of bringing 
a civil action in United States district court. The venue for 
the judicial review shall be in the United States Judicial 
District where the cabin is located or the permit holder 
resides.

Section 7. Consistency with other law and rights

    Section 7(a) provides that nothing in this Act limits any 
right of the United States to any land or resource.
    Section 7(b) specifically references cabins located in the 
State of Alaska, providing that nothing in this Act shall 
establish cabin user fees that are inconsistent with the Alaska 
National Interest Lands Conservation Act (16 U.S.C. 3193(d)).

Section 8. Regulations

    Section 8 requires the Secretary to promulgate regulations 
no later than December 31, 2012.

            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 Natural Resources' oversight findings and 
recommendations are reflected in the body of this report.

                   CONSTITUTIONAL AUTHORITY STATEMENT

    Article IV, section 3 of the Constitution of the United 
States grants 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, spending 
authority, credit authority, or an increase or decrease in 
revenues or tax expenditures.
    3. General Performance Goals and Objectives. As required by 
clause 3(c)(4) of rule XIII, the general performance goal or 
objective of this bill is to revise the Forest Service 
Recreation Residence Program as it applies to units of the 
National Forest System derived from the public domain by 
implementing a simple, equitable, and predictable procedure for 
determining cabin user fees, and for other purposes.
    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:

H.R. 4888--Cabin Fee Act of 2010

    Summary: H.R. 4888 would establish a new schedule for the 
fees paid to the federal government by individuals who own 
cabins on certain Forest Service lands. The bill also would 
authorize the Forest Service to assess a transfer fee when 
affected cabins are sold. Finally, the bill would allow the 
agency to retain and spend, without further appropriation, 
amounts collected from such fees to cover certain 
administrative costs.
    Based on information from the Forest Service, CBO estimates 
that implementing the legislation would increase direct 
spending by $145 million over the 2011-2020 period; therefore, 
pay-as-you-go procedures apply. CBO also estimates that 
implementing the legislation would reduce discretionary 
spending by about $70 million over that period, assuming 
appropriation actions consistent with the bill's allowed use of 
fees to cover administrative costs. Enacting the legislation 
would not affect revenues.
    H.R. 4888 contains no intergovernmental or private-sector 
mandates as defined in the Unfunded Mandates Reform Act (UMRA) 
and would impose no costs on state, local, or tribal 
governments.
    Estimated cost to the Federal Government: The estimated 
budgetary impact of H.R. 4888 is shown in the following table. 
The costs of this legislation fall within budget function 300 
(natural resources and environment).

--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                             By fiscal year, in millions of dollars--
                                         ---------------------------------------------------------------------------------------------------------------
                                            2011     2012     2013     2014     2015     2016     2017     2018     2019     2020   2011-2015  2011-2020
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                               CHANGES IN DIRECT SPENDING

Estimated Budget Authority..............        7        7       12       13       15       17       18       18       19       19        54        145
Estimated Outlays.......................        7        7       12       13       15       17       18       18       19       19        54        145

                                                      CHANCES IN SPENDING SUBJECT TO APPROPRIATION

Estimated Budget Authority..............       -7       -7       -7       -7       -7       -7       -7       -7       -7       -7       -35        -70
Estimated Outlays.......................       -7       -7       -7       -7       -7       -7       -7       -7       -7       -7       -35       -70
--------------------------------------------------------------------------------------------------------------------------------------------------------
Note: Amounts may not sum to totals because of rounding.

    Basis of estimate: For this estimate, CBO assumes that the 
legislation will be enacted in 2010.
    CBO estimates that implementing H.R. 4888 would increase 
net direct spending by $145 million over the 2011-2020 period. 
Fees collected from cabin owners by the Forest Service would be 
about $75 million less than would be collected under current 
law (such losses are shown as an increase in direct spending). 
In addition, the agency would be allowed to spend some of the 
fees collected on administrative expenses, thus increasing 
direct spending by an additional $70 million over the next 10 
years. CBO also estimates that implementing the legislation 
could reduce discretionary spending by $70 million because the 
Forest Service would no longer use appropriated funds to cover 
such administrative costs.

Direct spending

    Section 3 would establish a new schedule for fees assessed 
on cabins that occupy certain Forest Service lands 
(specifically, those lands not acquired by the federal 
government from private landowners). Under current law, cabin 
owners pay an annual fee to the government equal to 5 percent 
of the appraised value of the occupied Forest Service land. In 
2010, fees for roughly 12,500 affected cabins ranged from $30 
to $11,100 per cabin. Based on information from the agency, CBO 
estimates that fee collections from those cabins will total 
about $21 million in 2011 and that fee collections will 
increase to $36 million a year by 2020 as new appraisals of the 
value of Forest Service land, which are expected to 
significantly increase fees on about 40 percent of the cabins, 
are completed.
    Under the bill, cabin owners would pay specified annual 
fees ranging from $500 to $4,000 per cabin, depending on the 
appraised value of the occupied land. Those fees would go into 
effect after the Forest Service completes its current appraisal 
cycle, which CBO expects would occur in 2012; therefore, fees 
under the bill would be the same as those under current law 
over the 2011-2012 period. CBO estimates that fee collections 
under the bill from the affected cabins would total about $21 
million in 2013 and would reach $24 million a year by 2020. 
Because fee collections from those cabins would be lower under 
the bill than the fees expected to be paid under current law, 
CBO estimates that enacting this provision would reduce 
offsetting receipts (that is, increase direct spending) by 
about $80 million over the 2013-2020 period.
    Section 4 would require the Forest Service to collect a new 
transfer fee from cabin owners who sell their cabins. The 
amount of the fee would be based on the sales price. CBO 
estimates that implementing this provision would increase 
offsetting receipts (a credit against direct spending) by about 
$5 million over the 2011-2020 period, based on information from 
the Forest Service regarding the number of cabins sold 
annually.
    Section 5 would authorize the Forest Service to retain and 
spend, without further appropriation, amounts collected from 
cabin fees to cover the cost of administering its cabin 
program. Based on information from the agency regarding the 
historical costs of administering the cabin-fee program, CBO 
estimates that enacting this provision would increase direct 
spending by about $70 million over the 2011-2020 period.

Spending subject to appropriation

    H.R. 4888 would authorize the Forest Service to retain and 
spend, without further appropriation, amounts collected from 
cabin fees to cover certain administrative costs. Under current 
law, the Forest Service spends about $7 million annually from 
discretionary appropriations to carry out those activities. If 
appropriations were reduced by a similar amount in future 
years, CBO estimates that implementing the legislation would 
reduce discretionary spending by about $70 million over the 
2011-2020 period.
    Pay-as-you-go considerations: The Statutory Pay-As-You-Go 
Act of 2010 establishes budget-reporting and enforcement 
procedures for legislation affecting direct spending or 
revenues. The net changes in outlays that are subject to those 
pay-as-you-go procedures are shown in the following table.

        CBO ESTIMATE OF PAY-AS-YOU-GO EFFECTS FOR H.R. 4888 AS ORDERED REPORTED BY THE HOUSE COMMITTEE ON NATURAL RESOURCES ON DATE JULY 22, 2010
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                              By fiscal year, in millions of dollars--
                                           -------------------------------------------------------------------------------------------------------------
                                             2010    2011    2012    2013    2014    2015    2016    2017    2018    2019    2020   2010-2015  2010-2020
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                       NET INCREASE OR DECREASE (-) IN THE DEFICIT

Statutory Pay-As-You-Go Impact............       0       7       7      12      13      15      17      18      18      19      19        54        145
--------------------------------------------------------------------------------------------------------------------------------------------------------

    Intergovernmental and private-sector impact: H.R. 4888 
contains no intergovernmental or private-sector mandates as 
defined in UMRA and would impose no costs on state, local, or 
tribal governments.
    Estimate prepared by: Federal Costs: Jeff LaFave; Impact on 
State, Local, and Tribal Governments: Melissa Merrell; Impact 
on the Private Sector: Amy Petz.
    Estimate approved by: Theresa Gullo, Deputy Assistant 
Director for Budget Analysis.

                    COMPLIANCE WITH PUBLIC LAW 104-4

    This bill contains no unfunded mandates.

                           EARMARK STATEMENT

    H.R. 4888 does not contain any congressional earmarks, 
limited tax benefits, or limited tariff benefits as defined in 
clause 9 of rule XXI.

                PREEMPTION OF STATE, LOCAL OR TRIBAL LAW

    This bill is not intended to preempt any State, local or 
tribal law.

                        CHANGES IN EXISTING LAW

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

                    ADDITIONAL VIEWS OF DOC HASTINGS

    The Cabin Fee Act, H.R. 4888 is critically important to the 
14,000 American families who own cabins on land in our National 
Forests. Unless Congress acts to bring about a course 
correction, many thousands of these people will be forced to 
abandon family heirloom cabins as the currently planned fee 
hikes go into effect. This bill provides a legislative solution 
that can head off that impending tragedy.
    In drafting this bill, the goal was to create new fee 
schedule that will be balanced and fair to both the cabin 
owners and the Treasury. Work continues with the Congressional 
Budget Office to determine what adjustments may be needed to 
ensure that the bill is revenue neutral without imposing fees 
that are far beyond the reach of our constituents.
    Many of the private cabins on Forest Service land are 
simple, rustic structures hand-built by the grandparents of the 
current owners early in the last century and passed down from 
generation to generation. And although there may be a few that 
are large and showy, the overwhelming majority of the cabins 
are modest family retreats. The purpose of this bill is to keep 
the fees affordable for people such as teachers, factory 
workers and retirees, not just millionaires--which is just what 
will happen if we don't address the problem.
    The cabin owners affected by this bill are charged an 
annual fee for use of the land on which their cabin sits. They 
do not get any ownership rights to the land. They have only a 
temporary and highly restricted use permit for, basically, the 
footprint of their cabin.
    Because a temporary, limited use-permit is not comparable 
to the rights acquired when someone owns property in fee 
simple, it has proven impossible under current law to establish 
a fair process for setting the fees charged the cabin owners.
    The current system has resulted in unrealistic, arbitrary 
fee hikes that are completely unaffordable for average 
families. For example, the Seattle Times reported last year 
that cabin owners in Lake Wenatchee received notice that their 
fees will increase more than one thousand percent, from $1,400 
to more than $17,000 by 2011.
    Skyrocketing fees also make these part-time homes 
unmarketable, leaving families who are unable to pay the high 
fees also unable to sell their cabins. Unless we act to 
establish a realistic pricing structure, families across our 
nation may be forced to tear down their cabins because they can 
neither afford the fees themselves nor find a buyer for their 
cabin.
    The Cabin Fee Act will establish a simple, predictable fee-
setting system based on a tiered structure. And because future 
fee increases will be tied to inflation, it will eliminate the 
Forest Service's costly administrative burden of constant 
appraisals and appeals.
    These family-owned cabins encourage wholesome outdoor 
recreation which is a very important use of our vast system of 
public land. Providing access to public lands is an important 
part of the mission of the Forest Service, and action is needed 
to make certain that recreational cabins aren't priced out of 
existence. By encouraging a broad and diverse range of 
activities in our National Forests, we foster the kind of sound 
stewardship that allows us more fully to obtain the many 
benefits these lands can contribute.
    This legislation will provide a sensible, long-term 
solution that will keep these cabins affordable and accessible 
to Americans, while still providing fair compensation to the 
federal Treasury for the use of the land.

                                                      Doc Hastings.

                                  
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