99–006

107TH CONGRESS REPORT " ! HOUSE OF REPRESENTATIVES 2d Session 107–455

LEASES, PERMITS, AND CONTRACTS FOR BUILDINGS, FACILITIES, AND PROPERTIES IN THE NATIONAL WILDLIFE

REFUGE SYSTEM

MAY 14, 2002.—Committed to the Committee of the Whole House on the State of

the Union and ordered to be printed

Mr. HANSEN, from the Committee on Resources,

submitted the following

R E P O R T

[To accompany H.R. 1370]

[Including cost estimate of the Congressional Budget Office]

The Committee on Resources, to whom was referred the bill

(H.R. 1370) to amend the National Wildlife Refuge System Administration Act of 1966 to authorize the Secretary of the Interior to

provide for maintenance and repair of buildings and properties located on lands in the National Wildlife Refuge System by lessees

of such facilities, and for other purposes, having considered the

same, report favorably thereon with amendments and recommend

that the bill as amended do pass.

The amendments are as follows:

Strike all after the enacting clause and insert the following:

SECTION 1. LEASES, PERMITS, AND CONTRACTS FOR BUILDINGS, FACILITIES, AND PROPERTIES IN THE NATIONAL WILDLIFE REFUGE SYSTEM.

(a) IN GENERAL.—The National Wildlife Refuge System Administration Act of

1966 (16 U.S.C. 668dd et seq.) is amended by—

(1) striking section 6 (relating to amendments to other laws, which have executed);

(2) redesignating section 5 (16 U.S.C. 668ee) as section 6; and

(3) inserting after section 4 the following:

‘‘SEC. 5. CONCESSION CONTRACTS.

‘‘(a) CONTRACT REQUIREMENT.—(1) The Secretary shall not award any concession

that authorizes a person to use any land or water in the System for any activity

described in subsection (b), except under a contract that complies with the requirements established under subsection (c).

‘‘(2) The Secretary may not award a contract required under this subsection except under a competitive bidding process.

‘‘(b) COVERED CONCESSION ACTIVITIES.—(1) The activity referred to in subsection

(a) is any activity conducted to provide accommodations, facilities, or services to

members of the public who are visiting lands or waters in the System, for the purVerDate 11-MAY-2000 00:12 May 15, 2002 Jkt 099006 PO 00000 Frm 00001 Fmt 6659 Sfmt 6621 E:\HR\OC\HR455.XXX pfrm12 PsN: HR455
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pose of providing such visitors recreational, educational, or interpretive enjoyment

of lands or waters in the System.

‘‘(2) Such activity does not include—

‘‘(A) any activity carried out under a procurement contract, grant agreement,

or cooperative agreement required under chapter 63 of title 31, United States

Code;

‘‘(B) the performance of volunteer services; and

‘‘(C) any activity by a governmental entity.

‘‘(c) STANDARDIZED CONTRACT.—(1) The Secretary, acting through the Director,

shall issue regulations that establish a standardized contract for purposes of subsection (a).

‘‘(2) Regulations under this subsection shall authorize a contract to use a provision

other than those specified by the regulations only if—

‘‘(A) the provision addresses extenuating circumstances that are specific to a

refuge or the contract; and

‘‘(B) the provision is approved by the Director in writing.

‘‘(3) Regulations under this subsection shall require in each contract provisions

that require that any activity conducted in the System under the contract—

‘‘(A) must be a compatible use; and

‘‘(B) must be designed to—

‘‘(i) conserve the natural and cultural resources of the System;

‘‘(ii) facilitate the enjoyment of the lands and waters of the System by

visitors to the System; and

‘‘(iii) enhance the such visitors’ knowledge of the natural resources of the

System.

‘‘(d) MAINTENANCE AND REPAIR.—(1) Notwithstanding any other provision of law,

the Secretary shall include, in each contract that authorizes a person to use any

land or water in the System for any activity described in subsection (b), provisions

that—

‘‘(A) authorize the person to maintain or repair any improvement on or in

such land or water that the person is authorized to use for such activity; and

‘‘(B) treat costs incurred by the person for such maintenance or repair as consideration otherwise required to be paid to the United States for such use.

‘‘(2) This subsection does not authorize any maintenance or repair that is not directly related to an activity described in subsection (b) that is authorized by the contract.

‘‘(3) The United States shall retain title to all property that is maintained or repaired under this subsection.

‘‘(e) NO COMPENSABLE INTEREST.—Nothing in this Act shall be considered to convey to any person any right to compensation for—

‘‘(1) the value of any maintenance activities, repairs, construction, or improvements on or in land or water in the System; or

‘‘(2) buildings, facilities, fixtures, and non-movable equipment that the person

is authorized to use under this Act.

‘‘(f) EXPENDITURE OF FEES AND OTHER PAYMENTS.—(1) Amounts received by the

United States as fees or other payments required under any agreement, lease, permit, or contract for use of real property located in an area in the System shall be

available to the Secretary for expenditure in accordance with this subsection, without further appropriation.

‘‘(2) Amounts available for expenditure under this subsection may only be used—

‘‘(A) at the refuge or refuge complex with respect to which the amounts were

received as fees or other payments;

‘‘(B) to increase the quality of the visitor experience; and

‘‘(C) for purposes of—

‘‘(i) backlogged repair and maintenance projects (including projects relating to health and safety);

‘‘(ii) interpretation, signage, habitat, or facility enhancement;

‘‘(iii) resource preservation; or

‘‘(iv) administration of agreements, leases, permits, and contracts from

which such amounts are derived.

‘‘(3) Paragraph (1) shall not affect the application of the Act of June 15, 1935

(chapter 261; 16 U.S.C. 715s), commonly referred to as the Refuge Revenue Sharing

Act, to amounts referred to in paragraph (1) that are not expended by the Secretary

under paragraph (1).’’.

(b) APPLICATION.—Section 5(a) of the National Wildlife Refuge System Administration Act of 1966, as amended by this section, shall apply only with respect to a

concession that is—

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(1) first awarded after the date of the publication of regulations under section

5(c) of the National Wildlife Refuge System Administration Act of 1966, as

amended by this section; or

(2) renewed after the end of the 3-year period beginning on the date of the

enactment of this Act.

(c) DEADLINE FOR REGULATIONS ESTABLISHING STANDARDIZED CONTRACT REQUIREMENTS.—The Secretary of the Interior shall issue regulations under section 5(c) of

the National Wildlife Refuge System Administration Act of 1966, as amended by

this section, by not later than 18 months after the date of the enactment of this

Act.

(d) COMPREHENSIVE CONSERVATION PLAN REQUIREMENT.—Section 4(e) of the National Wildlife Refuge System Administration Act of 1966 (16 U.S.C. 668dd) is

amended by adding at the end the following:

‘‘(5) The Secretary shall include, in the comprehensive conservation plan for each

refuge under this subsection, a description of the activities that may be conducted

in the refuge, and the lands, waters, and facilities of the refuge that may be used,

under concession contracts awarded under section 5(a).’’.

(e) PRIOR AMENDMENTS NOT AFFECTED.—Nothing in this section shall be construed to affect any amendment made by section 6 of the National Wildlife Refuge

System Administration Act of 1966, as in effect before the enactment of this Act,

or any provision of law amended by such section.

(f) ANNUAL REPORT ON NATIONAL WILDLIFE REFUGE CONCESSIONS.—

(1) REPORTING REQUIREMENT.—The National Wildlife Refuge System Administration Act of 1966 (16 U.S.C. 668dd et seq.) is further amended by adding at

the end the following:

‘‘SEC. 7. ANNUAL REPORT ON CONCESSION ACTIVITIES IN THE SYSTEM.

‘‘(a) IN GENERAL.—The Secretary shall submit by December 31 each year, to the

Committee on Resources of the House of Representatives and the Committee on Environment and Public Works of the Senate, a report on concessions activities conducted in the System.

‘‘(b) CONTENTS.—Each report under this section shall describe the following with

respect to the period covered by the report:

‘‘(1) The number of refuge units in which concessions activities were conducted.

‘‘(2) The names and descriptions of services offered in the System by each concessionaire.

‘‘(3) A listing of the different types of legal arrangements under which concessionaires operated in the System, including contracts, memoranda of understanding, permits, letters of agreement, and other arrangements.

‘‘(4) Amounts of fees or other payments received by the United States with

respect to such activities from each concessionaire, and the portion of such

funds expended for purposes under this Act.

‘‘(5) An accounting of the amount of monies deposited into the fund established by section 401 of the Act of June 15, 1935 (chapter 261; 16 U.S.C. 715s),

popularly known as the refuge revenue sharing fund, and of the balance remaining in the fund at the end of the reporting period.

‘‘(6) A listing of all concession contracts and other arrangements that were

terminated or not renewed within the reporting period.

‘‘(7) A summary of all improvements in visitor services in the System that

were completed by concessionaires and volunteers during the reporting period.

‘‘(8) A summary of all backlogged repair and maintenance, facility enhancement, and resource preservation projects completed by concessionaires and volunteers during the reporting period.’’.

(2) DEADLINE FOR FIRST REPORT.—The Secretary of the Interior shall submit

the first report under the amendment made by paragraph (1) by not later than

1 year after the date of the enactment of this Act.

Amend the title so as to read:

A bill to amend the National Wildlife Refuge System Administration Act of 1966

to establish requirements for the award of concessions in the National Wildlife Refuge System, to provide for maintenance and repair of properties located in the System by concessionaires authorized to use such properties, and for other purposes.

PURPOSE OF THE BILL

The purpose of H.R. 1370 as ordered reported is to amend the

National Wildlife Refuge System Administration Act of 1966 to esVerDate 11-MAY-2000 00:12 May 15, 2002 Jkt 099006 PO 00000 Frm 00003 Fmt 6659 Sfmt 6602 E:\HR\OC\HR455.XXX pfrm12 PsN: HR455
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tablish requirements for the award of concessions in the National

Wildlife Refuge System, to provide for maintenance and repair of

properties located in the System by concessionaires authorized to

use such property, and for other purposes.

BACKGROUND AND NEED FOR LEGISLATION

The National Wildlife Refuge System is comprised of federal

lands that have been acquired for the conservation and enhancement of fish and wildlife. The System is administered by the U.S.

Fish and Wildlife Service, an agency within the Department of Interior. The Service manages the System in accordance with the National Wildlife Refuge System Administration Act of 1966. That Act

was amended and updated by the National Wildlife Refuge Improvement Act of 1997 (Public Law 105–57).

The statutory mission of the System is ‘‘to administer a national

network of lands and waters for the conservation, management,

and where appropriate, restoration of the fish, wildlife, and plant

resources and their habitats within the United States for the benefit of present and future generations of Americans’’. Recreational

and other uses of System lands are permitted if those uses are

compatible with the mission of the System and the purposes for

which the particular national wildlife refuge was established. Thirty-nine million people visited refuges last year, up from an estimated 27 million less than decade ago.

The System, totaling about 94 million acres and 538 refuges and

37 wetland management districts, provides habitat for hundreds of

fish and wildlife species, including more than 258 species listed

under the Endangered Species Act. The first wildlife refuge was established by President Theodore Roosevelt at Pelican Island, Florida in 1903. The vast majority of the System, 81 million acres, was

reserved from the public domain. Roughly 4 million acres have

been purchased. The primary sources of funding for refuge land acquisition are: (1) annual appropriations from the Land and Water

Conservation Fund; and (2) the Migratory Bird Conservation Fund,

which is funded from the purchase of annual duck stamps, import

duties on arms and ammunition, and refuge entrance fees.

Unfortunately, the System is suffering from its popularity. For

Fiscal Year 2002, the deferred maintenance backlog for the System

includes 5086 projects. Completion of these projects is estimated to

cost $663 million. Collectively, the replacement value of System

property is nearly $7 billion. In the current fiscal year, the Service

will spend roughly 1 percent of the value of refuge assets on maintenance. If spending continues at this rate, the deferred maintenance backlog will continue to grow. This is the primary reason

why the U.S. Fish and Wildlife Service has not maintained various

buildings and properties within the refuge system that are leased

or utilized by private concessionaires.

For nearly 70 years, the Secretary of the Interior has been statutorily authorized by Section 401 of the Act of June 15, 1935, to

grant privileges or concessions on units of the refuge system. Concessions are defined as businesses operated by a private enterprise

that provides recreational, educational and interpretive enjoyment

for the visiting public. A concession offers a public service and it

generally requires some capital investment by the concessionaire

for facilities and products. In 1966, the Secretary was authorized

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by the National Wildlife Refuge System Administration Act to negotiate and enter into contracts with any person, public agency or

private enterprise for public accommodations that are not inconsistent with the purposes for which the particular refuge was established.

Furthermore, the U.S. Fish and Wildlife Service retains title to

all property utilized by concessionaires. By statute, the Service may

only accept money for the rental and/or use of Service property and

facilities. The Service alone is responsible for the maintenance and

upkeep of all federal buildings and facilities found within the

boundaries of the refuge system. Since the Service is facing a staggering maintenance backlog in excess of $660 million, it is not surprising to find that facilities used by concessionaires are given extremely low priority.

After completing a survey of the National Wildlife Refuge System, it appears that there are about 20 refuge units that have various concession services. These concessionaires have agreed to a

number of arrangements including: five year contracts with a minimum payment of a 5 percent franchise fee, letters of agreement,

memoranda of understandings, special use permits and leases. The

services offered range from boat and canoe rentals, bookstores,

campgrounds, ferries, gift shops, interpretive tours, sleigh rides

and tour boat operators.

Based on the survey of refuge managers at the affected concession units, it is clear that a number of buildings, docks, restrooms

and storage facilities are in extremely poor condition. For instance,

during this survey it was learned that the Ding Darling Refuge in

Sanibel, Florida, has a two-story house that is used for office space,

rental facilities and a gift shop. Four years ago, money was spent

to restore the structure but the roof of the house still needs to be

replaced. While the building is in fair to good condition, there is

only one set of restrooms for the 175,000 visitors that travel to

Ding Darling each year. These restrooms are not handicapped accessible. The concessionaire has been unable to repair these facilities because of the current statutory restrictions. This is a problem

that faces the entire refuge system. It is regrettable that these refuge facilities have not been properly maintained.

Federal law (40 U.S.C. 303 (b)) is currently an impediment to the

efficient maintenance of a concession facility. The Service has been

unable to return refuge incurred expenses for the administration,

capital improvement and maintenance expenses involved with providing concession opportunities as is allowed in subsection (b) of 16

U.S.C. 715s. The operation of concessions on refuge land has been

viewed as a low priority issue. Refuge managers have no incentives

or desire to enter into concession contracts. It is too costly to run

a quality concession program.

As the size of the refuge system has increased, there has been

a decrease in the amount of funding available to provide quality

recreational opportunities, staff to provide interpretation and environmental education and to modernize facilities. One option for

providing wildlife dependent recreational opportunities such as

hunting, fishing, wildlife observation, wildlife photography, interpretation and environmental education, which are priority uses of

the National Wildlife Refuge System, is to allow private businesses

or concessionaires to provide those services.

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The fundamental goal of H.R. 1370 is to authorize the Secretary 

of the Interior to include in any future contract with a concessionaire the following stipulations: the lessee may maintain or repair any structure within the refuge unit and the costs incurred in 

such maintenance and repair are to be treated by the Service as 

compensation for using those facilities. Furthermore, the measure 

limits private expenditures within the refuge system to a specific 

lists of authorized items including backlogged repair and maintenance projects, interpretation, signage, habitat, facility enhancement, and resource protection. The Fish and Wildlife Service will 

retain the right to determine whether a specific repair is warranted 

and they will obtain estimates for any repair or maintenance work. 

This new refuge concession policy will allow the Fish and Wildlife Service to enter into negotiations with concessionaires for the 

purpose of allowing them to repair or maintain property which they 

lease for the benefit of the American people. This will enhance 

their viewing experience, give the public a greater sense of ownership in the system and allow the Service to spend it limited resources on other high priority maintenance projects. 

COMMITTEE ACTION

H.R. 1370 was introduced on April 3, 2001, by Congressman 

Mark E. Souder (R-IN). The bill was referred to the Committee on 

Resources, and within the Committee to the Subcommittee on Fisheries Conservation, Wildlife and Oceans. On September 20, 2001, 

the Subcommittee held a hearing on the bill. On December 6, 2001, 

the Subcommittee met to mark up the bill. Congressman Wayne 

Gilchrest (R-MD) offered an amendment that made a number of 

clarifying changes to ensure that a concessionaire may obtain credit for repair work and that the resources of an affected refuge are 

enhanced. The amendment was adopted by voice vote. Congressman Robert A. Underwood (D-GU) offered an amendment to require an annual report of the number, location, services and contractual arrangements involving concessionaires within the refuge 

system. This amendment was adopted by voice vote. The bill, as 

amended, was then ordered favorably reported to the Full Committee by voice vote. On April 24, 2002, the Full Resources Committee met to consider the bill. Mr. Souder offered an amendment 

in the nature of a substitute that requires the development of 

standard concession contract language for the National Wildlife 

Refuge System; mandates that all existing and new refuge concessionaires utilize that contract language in the future; stipulates 

that the Comprehensive Conservation Plan of each refuge address 

activities and facilities used by a concessionaire and ensure that 

concession maintenance funds are spent on projects that are directly related to visitors services. It was adopted by voice vote. The 

bill as amended was then ordered favorably reported to the House 

of Representatives by voice vote. 

SECTION-BY-SECTION ANALYSIS

Section 1. Leases, permits and contracts for buildings, facilities and 

properties in the National Wildlife Refuge System 

This section provides that all amendments are to the National 

Wildlife Refuge System Administration Act of 1966. 

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Subsection (a) creates a new Section 5, Concession Contracts, 

within the National Wildlife Refuge System Administration Act of 

1966. The new Section 5 would specify the following new policies: 

Section 5(a). Contract Requirement. The Secretary of the Interior 

shall not award any concession unless the agreement utilizes the 

standard concession contract and requires all concession contracts 

to be awarded under a competitive bidding process. 

Section 5(b). Covered Concession Activities. This subsection defines a concession activity as one that provides modestly scaled accommodations, facilities or services to members of the public visiting the refuge system to enhance the recreational, educational or 

interpretive enjoyment of the lands and waters of the system. 

The Committee anticipates that future concessions will be similar to those currently offered. Such activities would include: canoe 

or boat rentals; horse liveries; small bait, outdoor equipment, sandwich or soft drink shops; kiosks selling books, coffee cups or 

sweatshirts or other sundries at a visitors center; ferries to inaccessible refuge areas; and guided nature and back country tours. The 

Committee does not envision the construction of large structures 

that would be considered attractions by themselves, or which would 

detract from the wildlife-first mission of the refuge system, like 

convention centers, lodges, stadiums or amusement parks operated 

by concessionaires within any refuge. The refuge system has a conservation mandate that is unique among the federal land management systems. Concession activities that occur in the National 

Park System, on Bureau of Land Management lands, or in the National Forest System are not necessarily appropriate for refuges. 

Compatible wildlife dependent recreation and where appropriate 

concession activities are allowed in the refuge system, but are not 

the System’s mission. 

Section 5(c). Standardized Contract. The Director of the U.S. 

Fish and Wildlife Service must issue regulations establishing a 

standard concession contract. The subsection stipulates that any 

additional provisions to that standard contract agreed to by the affected refuge manager must be because of extenuating circumstances. All additional provisions must be approved in writing 

by the Director of the U.S. Fish and Wildlife Service. This subsection also requires that any concession activity must be a compatible use with the mission of the refuge system and the purpose(s) of the specific refuge unit and designed to conserve natural 

and cultural resources, facilitate the enjoyment of the visiting public and enhance the visiting public’s knowledge of the natural resources of the system. 

Section 5(d). Maintenance and Repair. This subsection would 

allow a concessionaire with the concurrence of the Fish and Wildlife Service to maintain or repair any structure within the refuge 

unit and to treat those costs as consideration for the fees they pay 

to the Service for using concession buildings, facilities, fixtures and 

non-movable equipment. The subsection stipulates that the federal 

government retains title to all property maintained or repaired by 

concessionaires. 

Section 5(e). No Compensable Interest. This subsection clarifies 

that nothing in H.R. 1370 will convey to any person the right to 

compensation for costs of construction, or for interests in buildings, 

8

facilities, and fixed and non-movable equipment that is used by a

concessionaire under a concession contract.

Section 5(f). Expenditure of Fees and other Payments. This subsection clarifies that fees paid by a concessionaire are retained at

the local refuge unit may only be used for the following activities:

backlogged repairs and maintenance projects; interpretation, signage, habitat or facility enhancement; resource preservation; and administrative costs.

The Committee recognizes that the processing of new concession

contracts will create some additional administrative expenses, and

believes that the Service should be able to recover the costs of processing a concession contract. The Committee does not expect such

costs to ever exceed five percent of the value of the contract fee.

In addition, it is not the intent of this language to provide authority to allow the Fish and Wildlife Service to hire concession contract officers or to establish a new division of concession services.

Subsection (b). Application. This subsection requires any new

concession activity to utilize the new standard concession contract

after its final publication in the Federal Register and requires that

any existing concession or renewal of a concession be converted to

the standard contract beginning three years after the date of enactment of this act.

Subsection (c). Deadline for Regulations Establishing Standardized Contract Requirements. This subsection specifies that the Director of the Fish and Wildlife Service will establish through regulations a standard concession contract within 18 months after the

date of enactment of H.R. 1370.

Subsection (d). Comprehensive Conservation Plan Requirement.

This subsection stipulates that Comprehensive Conservation Plans,

which are required to be completed for each refuge or refuge complex by 2012, address and describe the types of compatible activities and services that might be offered by a concessionaire in the

affected refuge unit.

Subsection (e). Amendments Not Affected. This subsection clarifies that any amendments made by Section 6 of the National Wildlife Refuge Administration Act of 1966, as in effect before the enactment of this bill, remain in effect.

Subsection (f). Annual Report on National Wildlife Refuge Concessions. This subsection amends Section 7 of the National Wildlife

Refuge Administration Act of 1966 to require that by December

31st of each year, the Secretary of the Interior will submit to the

House Committee on Resources and the Senate Committee on Environment and Public Works a report on concession activities conducted in the system. This report would provide the following information: number of refuge units with concession activities; names

and description of concession services; amounts of fees or other

payments received by the U.S. Government; accounting of monies

deposited in the Refuge Revenue Sharing Fund; list of all contracts

terminated or not renewed each year; summary of all improvements in visitors services and a summary of all repair and maintenance, facility enhancement and resources preservation projects

completed by concessionaires and volunteers within the System.

The Committee believes this annual report is an important document which will describe changing concession activities within the

National Wildlife Refuge System, progress in reducing the Refuge

9

System maintenance budget backlog, and fulfillment of the refuge

system’s goal to improve visitor services and public education and

resource interpretation. The Committee urges the Secretary to

make every effort to comply with the statutory deadlines for submission of this report to Congress.

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 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, credit authority, or an increase

or decrease in tax expenditures. According to the Congressional

Budget Office, enactment of this bill would reduce revenues and

corresponding direct spending by less than $500,000 per year.

3. General Performance Goals and Objectives. This bill does not

authorize funding and therefore, clause 3(c)(4) of rule XIII of the

Rules of the House of Representatives does not apply.

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, May 10, 2002.

Hon. JAMES V. HANSEN, 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. 1370, a bill to amend the

National Wildlife Refuge System Administration Act of 1966 to authorize the Secretary of the Interior to provide for maintenance and

repair of buildings and properties located on lands in the National

Wildlife Refuge System by lessees of such facilities.

10

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. Crippen, Director).

Enclosure.

H.R. 1370—A bill to amend the National Wildlife Refuge System

Administration Act of 1966 to authorize the Secretary of the Interior to provide for maintenance and repair of buildings and

properties located on lands in the National Wildlife Refuge System by lessees of such facilities

Summary: H.R. 1370 would establish a new policy governing the

use of private concessioners to provide public accommodations and

services at National Wildlife Refuges. CBO estimates that enacting

the bill would have no significant impact on the federal budget. Because the bill would affect direct spending, pay-as-you-go procedures would apply, but we estimate that the changes would be less

than $500,000 a year.

The bill contains no intergovernmental or private-sector mandates as defined in the Unfunded Mandates Reform Act (UMRA)

and would have no significant impact on the budgets of state, local,

or tribal governments.

H.R. 1370 would require the U.S. Fish and Wildlife Service

(USFWS) to enter into agreements with concessioners only through

formal contracts. The bill would require that each standardized

contract contain a provision allowing the concessioner to provide

maintenance or other work directly benefiting the facilities it use

in exchange for paying a lower fee to the government. Any fees

that are received from concessioners could be spent without further

appropriation by the refuge manager for contract administration,

refuge maintenance or improvements, and resource preservation.

The new contract requirements would apply only to concession

agreements entered into after enactment of the bill or renewed

within three years after that time. Current law prohibits the agency from accepting services from contractors in favor of reduced leasing or other types of concession fees.

Estimated cost to the Federal Government: CBO estimates that

implementing H.R. 1370 would have no significant net effect on the

federal budget in any year.

At present, agreements between the USFWS and concessioners

(including nonprofit organizations) take several different forms, including contracts, special-use permits, and memoranda of understanding. Few of these agreements result in any receipts to the

government. The offsetting receipts presently collected (less than

$500,000 a year) are deposited into the National Wildlife Refuge

Fund (NWRF), and later period, without further appropriation, to

local governments.

CBO expects that the bill would reduce offsetting receipts and

subsequent spending over the next few years because both the

USFWS and its current contractors would probably find it advantageous to renegotiate existing fee-generating agreements as quickly as the bill would allow. Because both deposits and spending

would fall correspondingly, there would be no net effect on the federal budget.

11

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. CBO estimates that

enacting H.R. 1370 would result in small changes in direct spending, but these would have a net impact less than $500,000 annually.

Intergovernmental and private-sector impact: H.R. 1370 contains

no intergovernmental or private-sector mandates as defined in

UMRA and would have no significant impact on the budgets of

state, local, or tribal governments.

Estimate prepared by: Federal Costs: Deborah Reis; Impact on

State, Local, and Tribal Governments: Marjorie Miller; and Impact

on the Private Sector: Cecil McPherson.

Estimate approved by: Peter H. Fontaine, Deputy Assistant Director for Budget Analysis.

COMPLIANCE WITH PUBLIC LAW 104–4

This bill contains no unfunded mandates.

PREEMPTION OF STATE, LOCAL OR TRIBAL LAW

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

CHANGES IN EXISTING LAW MADE BY THE BILL, AS REPORTED

In compliance with clause 3(e) of rule XIII of the Rules of the

House of Representatives, changes in existing law made by the bill,

as reported, are shown as follows (existing law proposed to be omitted is enclosed in black brackets, new matter is printed in italic,

existing law in which no change is proposed is shown in roman):

NATIONAL WILDLIFE REFUGE SYSTEM

ADMINISTRATION ACT OF 1966

* * * * * * *

SEC. 4. (a) * * *

* * * * * * *

(e)(1)***

* * * * * * *

(5) The Secretary shall include, in the comprehensive conservation

plan for each refuge under this subsection, a description of the activities that may be conducted in the refuge, and the lands, waters,

and facilities of the refuge that may be used, under concession contracts awarded under section 5(a).

* * * * * * *

SEC. 5. CONCESSION CONTRACTS.

(a) CONTRACT REQUIREMENT.—(1) The Secretary shall not award

any concession that authorizes a person to use any land or water

in the System for any activity described in subsection (b), except

under a contract that complies with the requirements established

under subsection (c).

(2) The Secretary may not award a contract required under this

subsection except under a competitive bidding process.

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(b) COVERED CONCESSION ACTIVITIES.—(1) The activity referred to

in subsection (a) is any activity conducted to provide accommodations, facilities, or services to members of the public who are visiting

lands or waters in the System, for the purpose of providing such

visitors recreational, educational, or interpretive enjoyment of lands

or waters in the System.

(2) Such activity does not include— (A) any activity carried out under a procurement contract,

grant agreement, or cooperative agreement required under chapter 63 of title 31, United States Code;

(B) the performance of volunteer services; and

(C) any activity by a governmental entity.

(c) STANDARDIZED CONTRACT.—(1) The Secretary, acting through

the Director, shall issue regulations that establish a standardized

contract for purposes of subsection (a).

(2) Regulations under this subsection shall authorize a contract to

use a provision other than those specified by the regulations only

if— (A) the provision addresses extenuating circumstances that

are specific to a refuge or the contract; and

(B) the provision is approved by the Director in writing.

(3) Regulations under this subsection shall require in each contract provisions that require that any activity conducted in the System under the contract— (A) must be a compatible use; and

(B) must be designed to— (i) conserve the natural and cultural resources of the System;

(ii) facilitate the enjoyment of the lands and waters of the

System by visitors to the System; and

(iii) enhance the such visitors’ knowledge of the natural

resources of the System.

(d) MAINTENANCE AND REPAIR.—(1) Notwithstanding any other

provision of law, the Secretary shall include, in each contract that

authorizes a person to use any land or water in the System for any

activity described in subsection (b), provisions that—

(A) authorize the person to maintain or repair any improvement on or in such land or water that the person is authorized

to use for such activity; and

(B) treat costs incurred by the person for such maintenance

or repair as consideration otherwise required to be paid to the

United States for such use.

(2) This subsection does not authorize any maintenance or repair

that is not directly related to an activity described in subsection (b)

that is authorized by the contract.

(3) The United States shall retain title to all property that is

maintained or repaired under this subsection.

(e) NO COMPENSABLE INTEREST.—Nothing in this Act shall be

considered to convey to any person any right to compensation for—

(1) the value of any maintenance activities, repairs, construction, or improvements on or in land or water in the System; or

(2) buildings, facilities, fixtures, and non-movable equipment

that the person is authorized to use under this Act.

(f) EXPENDITURE OF FEES AND OTHER PAYMENTS.—(1) Amounts

received by the United States as fees or other payments required

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under any agreement, lease, permit, or contract for use of real property located in an area in the System shall be available to the Secretary for expenditure in accordance with this subsection, without

further appropriation.

(2) Amounts available for expenditure under this subsection may

only be used—

(A) at the refuge or refuge complex with respect to which the

amounts were received as fees or other payments;

(B) to increase the quality of the visitor experience; and

(C) for purposes of—

(i) backlogged repair and maintenance projects (including projects relating to health and safety);

(ii) interpretation, signage, habitat, or facility enhancement;

(iii) resource preservation; or

(iv) administration of agreements, leases, permits, and

contracts from which such amounts are derived.

(3) Paragraph (1) shall not affect the application of the Act of

June 15, 1935 (chapter 261; 16 U.S.C. 715s), commonly referred to

as the Refuge Revenue Sharing Act, to amounts referred to in paragraph (1) that are not expended by the Secretary under paragraph

(1).

SEC. ø5¿ 6. DEFINITIONS.

For purposes of this Act:

(1) * * *

* * * * * * *

øSEC. 6. Section 4(b) of the Act of March 16, 1934 (48 Stat. 451),

as amended (16 U.S.C. 718d(b)), is further amended by changing

the colon after the word ‘‘areas’’ to a period and striking the provisos, which relate to hunting at certain wildlife refuges and which

are now covered by section 4 of this Act.¿

SEC. 7. ANNUAL REPORT ON CONCESSION ACTIVITIES IN THE SYSTEM.

(a) IN GENERAL.—The Secretary shall submit by December 31

each year, to the Committee on Resources of the House of Representatives and the Committee on Environment and Public Works of the

Senate, a report on concessions activities conducted in the System.

(b) CONTENTS.—Each report under this section shall describe the

following with respect to the period covered by the report:

(1) The number of refuge units in which concessions activities

were conducted.

(2) The names and descriptions of services offered in the System by each concessionaire.

(3) A listing of the different types of legal arrangements under

which concessionaires operated in the System, including contracts, memoranda of understanding, permits, letters of agreement, and other arrangements.

(4) Amounts of fees or other payments received by the United

States with respect to such activities from each concessionaire,

and the portion of such funds expended for purposes under this

Act.

(5) An accounting of the amount of monies deposited into the

fund established by section 401 of the Act of June 15, 1935

(chapter 261; 16 U.S.C. 715s), popularly known as the refuge

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revenue sharing fund, and of the balance remaining in the fund

at the end of the reporting period.

(6) A listing of all concession contracts and other arrangements that were terminated or not renewed within the reporting

period.

(7) A summary of all improvements in visitor services in the

System that were completed by concessionaires and volunteers

during the reporting period.

(8) A summary of all backlogged repair and maintenance, facility enhancement, and resource preservation projects completed by concessionaires and volunteers during the reporting

period.

Æ