I
106TH CONGRESS
1ST SESSION
H. R. 3327
To provide for the return of fair and reasonable fees to the Federal Govern-
ment for the use and occupancy of National Forest System land under
the recreation residence program, and for other purposes.
IN THE HOUSE OF REPRESENTATIVES
NOVEMBER 10, 1999
Mr. NETHERCUTT introduced the following bill; which was referred to the
Committee on Resources
A BILL
To provide for the return of fair and reasonable fees to
the Federal Government for the use and occupancy of
National Forest System land under the recreation resi-
dence program, and for other purposes.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
SECTION. 1. SHORT TITLE.
This Act may be cited as the ‘‘Cabin User Fee Fair-
ness Act of 1999’’.
SEC. 2. FINDINGS.
Congress finds that—
(1) the recreation residence program is—
(A) a valid use of forest land and 1 of the
multiple uses of the National Forest System;
and
(B) an important component of the recre-
ation program of the Forest Service;
(2) cabins located on forest land have provided
a unique recreation experience to a large number of
cabin owners, their families, and guests each year
since Congress authorized the recreation residence
program in 1915;
(3) tract associations, cabin owners, their ex-
tended families, guests, and others that regularly
use and enjoy forest cabin tracts have contributed
significantly toward efficient management of the
program and the stewardship of forest land;
(4) cabin user fees have traditionally generated
income to the Federal Government in amounts sig-
nificantly greater than the Federal cost of admin-
istering the program;
(5) the rights and privileges granted to owners
of cabins authorized under the program have stead-
ily diminished while regulatory restrictions and fees
charged under the program have steadily increased;
and
(6) the current fee determination procedure has
been shown to incorrectly reflect market value and
value of use.
SEC. 3. PURPOSES.
The purposes of this Act are—
(1) to ensure, to the maximum extent prac-
ticable, that the National Forest System recreation
residence program is managed to preserve the oppor-
tunity for individual and family-oriented recreation
at a reasonable cost; and
(2) to develop and implement a more efficient,
cost-effective procedure for determining cabin user
fees that better reflects the probable value of that
use by the cabin owner, taking into consideration the
limitations of the authorization and other relevant
market factors.
SEC. 4. DEFINITIONS.
In this Act:
(1) AGENCY.—The term ‘‘agency’’ means the
Forest Service.
(2) AUTHORIZATION.—The term ‘‘authoriza-
tion’’ means a special use permit for the use and oc-
cupancy of National Forest System land by a cabin
owner under the authority of the program.
(3) BASE CABIN USER FEE.—The term ‘‘base
cabin user fee’’ means the initial fee for an author-
ization that results from the appraisal of a lot in ac-
cordance with sections 6 and 7.
(4) CABIN.—The term ‘‘cabin’’ means a pri-
vately built and owned structure authorized for use
and occupancy on National Forest System land.
(5) CABIN USER FEE.—The term ‘‘cabin user
fee’’ means a special use fee paid annually by a
cabin owner to the Secretary in accordance with this
Act.
(6) CABIN OWNER.—The term ‘‘cabin owner’’
means—
(A) a person authorized by the agency to
use and to occupy a cabin on National Forest
System land; and
(B) an heir or assign of such a person.
(7) CARETAKER CABIN.—The term ‘‘caretaker
cabin’’ means a caretaker residence occupied in lim-
ited cases in which caretaker services are necessary
to maintain the security of a tract.
(8) CENTER.—The term ‘‘Center’’ means the
Federal Center for Dispute Resolution of the Amer-
ican Arbitration Association.
(9) CURRENT
CABIN
USER
FEE.—The term
‘‘current cabin user fee’’ means the most recent
cabin user fee that results from an annual adjust-
ment to the base cabin user fee in accordance with
section 8.
(10) LOT.—The term ‘‘lot’’ means a parcel of
land of the National Forest System on which a cabin
owner is authorized to build, use, occupy, and main-
tain a cabin and related improvements.
(11) PROGRAM.—The term ‘‘program’’ means
the recreation residence program established under
the Act of March 4, 1915 (38 Stat. 1101, chapter
144).
(12) 
SECRETARY.—The 
term 
‘‘Secretary’’
means the Secretary of Agriculture, acting through
the Chief of the Forest Service.
(13) TRACT.—The term ‘‘tract’’ means an es-
tablished location within a National Forest con-
taining 1 or more cabins authorized in accordance
with the program.
(14) TRACT ASSOCIATION.—The term ‘‘tract as-
sociation’’ means a cabin owner association in which
all cabin owners within a tract are eligible for mem-
bership.
SEC. 5. ADMINISTRATION OF RECREATION RESIDENCE
PROGRAM.
(a) IN GENERAL.—The Secretary shall ensure, to the
maximum extent practicable, that the basis and procedure
for calculating cabin user fees results in a reasonable and
fair fee for an authorization that reflects the probable
value of the use and occupancy of a lot to the cabin owner
in accordance with subsection (b).
(b) DETERMINATION OF VALUE.—The value of the
use and occupancy of a lot referred to in subsection (a)—
(1) shall not be equivalent to a rental fee of the
lot; and
(2) shall reflect regional economic influences, as
determined by an appraisal of the value of use of the
National Forest in which the lot is located.
SEC. 6. APPRAISALS.
(a) REQUIREMENTS
FOR
CONDUCTING
APPRAIS-
ALS.—In implementing and conducting an appraisal proc-
ess for determining cabin user fees, the Secretary shall—
(1) establish an appraisal process to determine
the value of the fee simple estate of a typical lot or
lots within a tract, with adjustments to reflect limi-
tations arising from the authorization and special
use permit;
(2) enter into a contract with an appropriate
professional organization for the development of spe-
cific appraisal guidelines in accordance with sub-
section (b), subject to public comment and congres-
sional review;
(3) require that an appraisal be performed by
a State-certified general real estate appraiser, se-
lected by the Secretary and licensed to practice in
the State in which the lot is located;
(4) provide the appraiser with—
(A) appraisal guidelines developed in ac-
cordance with this Act; and
(B) a copy of the special use permit associ-
ated with the typical lot to be appraised, with
an instruction to the appraiser to consider any
prohibitions or limitations contained in the au-
thorization;
(5) notwithstanding any other provision of law,
require the appraiser to coordinate the assignment
closely with affected parties by seeking advice, co-
operation, and information from cabin owners and
tract associations;
(6) require that the appraiser perform the ap-
praisal in compliance with—
(A) the most current edition of the Uni-
form Standards of Professional Appraisal Prac-
tice on the date of the appraisal;
(B) the most current edition of the Uni-
form Appraisal Standards for Federal Land Ac-
quisitions on the date of the appraisal; and
(C) the specific appraisal guidelines devel-
oped in accordance with this Act;
(7) require that the appraisal report be a self-
contained report (as defined by the Uniform Stand-
ards of Professional Appraisal Practice);
(8) require that the appraisal report comply
with the reporting guidelines established by the Uni-
form Appraisal Standards for Federal Land Acquisi-
tions; and
(9) before accepting any appraisal, conduct a
review of the appraisal to ensure that the guidelines
made available to the appraiser have been followed
and that the appraised values are properly sup-
ported.
(b) SPECIFIC APPRAISAL GUIDELINES.—In the devel-
opment of specific appraisal guidelines in accordance with
paragraph (a)(2), the instructions to an appraiser shall
require, at a minimum, the following:
(1) APPRAISAL OF A TYPICAL LOT.—
(A) IN GENERAL.—In conducting an ap-
praisal under this paragraph, the appraiser
shall appraise a typical lot or lots within a tract
(2) REQUIREMENT
FOR
ANALYSIS
OF
COM-
PARABLE SALES.—The appraisal shall be based on a
prioritized analysis of 1 or more categories of sales
of comparable land as follows:
(A) LARGER
PARCELS.—Sales of larger,
privately-owned, and preferably unimproved
parcels of rural land, generally similar in size to
the tract being examined, shall be given the
most weight in the analysis.
(B) SMALLER PARCELS.—Sales of smaller,
privately-owned, and preferably unimproved
parcels of rural land that are not part of an es-
tablished subdivision shall be given secondary
weight in the analysis.
(C) MAPPED AND RECORDED PARCELS.—
Sales of privately-owned parcels in a mapped
and recorded rural subdivision shall be given
the least weight in the analysis.
(3) EXCEPTION
FOR
CERTAIN
SALES
OF
LAND.—In conducting an analysis under paragraph
(2), the appraiser shall select sales of comparable
land that are outside the area of influence of—
(A) land affected by urban growth bound-
aries;
(B) land for which a government or insti-
tution holds a conservation or recreational ease-
ment; or
(C) land designated for conservation or
recreational purposes by Congress, a State, or
a political subdivision of a State.
(4) ADJUSTMENTS FOR TYPICAL VALUE INFLU-
ENCES.—
(A) IN
GENERAL.—The appraiser shall
consider and adjust the price of sales of com-
parable land for all typical value influences de-
scribed in subparagraph (B).
(B) VALUE
INFLUENCES.—The typical
value influences referred to in subparagraph
(A) include—
(i) differences in the locations of the
parcels;
(ii) accessibility, including limitations
on access attributable to—
(I) weather;
(II) the condition of roads or
trails; or
(III) other factors;
(iii) the presence of marketable tim-
ber;
(iv) limitations on, or the absence of,
services such as law enforcement, fire con-
trol, road maintenance, or snow plowing;
(v) the condition and regulatory com-
pliance of any site improvements; and
(vi) any other typical value influences
described in standard appraisal literature.
(5) ADJUSTMENTS
FOR
RESTRICTIONS
ON
USE.—In evaluating the sale of a comparable fee
simple parcel, an adjustment to the sale price of the
parcel shall be made to reflect the influence of prohi-
bitions or limitations on use or benefits imposed by
the agency that affect the value of the subject cabin
lot, including—
(A) any prohibition against year-round use
and occupancy or any other restriction that lim-
its or reduces the type or amount of cabin use
and occupancy;
(B) any limitation on the right of the cabin
owner to sell, lease, or rent the cabin without
restrictions imposed by the Secretary;
(C) any limitation on, or prohibition
against, improvements to the lot, such as re-
modeling or enlargement of the cabin, construc-
tion of additional structures, landscaping, signs,
fencing, clothes drying lines, mail boxes, swim-
ming pools, or other recreational facilities; and
(D) any limitation on, or prohibition
against, use of the lot for placement of amen-
ities such as playground equipment, domestic
livestock, recreational vehicles, or boats.
(6) ADJUSTMENTS TO SALES OF COMPARABLE
PARCELS.—
(A) IN GENERAL.—
(i) UTILITIES
PROVIDED
BY
AGEN-
CY.—Only utilities (such as water, sewer,
electricity, or telephone) or access roads or
trails that are clearly established as of the
date of the appraisal as having been pro-
vided and maintained by the agency at a
lot shall be included in the appraisal.
(ii) FEATURES
PROVIDED
BY
CABIN
OWNER.—All cabin facilities, decks, docks,
patios, and other nonnatural features (in-
cluding utilities or access)—
(I) shall be presumed to have
been provided by, or funded by, the
cabin owner; and
(II) shall be excluded from the
appraisal by adjusting any comparable
sales with the nonnatural features re-
ferred to in subparagraph (B)(ii).
(iii) WITHDRAWAL OF UTILITY OR AC-
CESS BY AGENCY.—If, during the term of
an authorization, the agency makes a sub-
stantial and materially adverse change in
the provision or maintenance of any utility
or access, the cabin owner shall have the
right to request and obtain a new deter-
mination of the base cabin user fee at the
expense of the agency.
(B) ADJUSTMENT FOR IMPROVEMENTS.—
(i) IN GENERAL.—The appraiser shall
consider and adjust the price of each sale
of a comparable parcel for all nonnatural
features referred to in subparagraph
(A)(ii) that—
(I) are present at, or add value
to, the parcel; but
(II) are not present at the lot
being appraised or not included in the
appraisal under subparagraph (A).
(ii) ADJUSTMENTS.—An adjustment
to the price of a parcel sold under this sub-
paragraph shall include allowances for
matters such as—
(I) depreciated current replace-
ment costs of installing nonnatural
features referred to in clause (i) at
the typical lot being appraised, includ-
ing an allowance for entrepreneurial
profit and overhead;
(II) likely construction difficulties
for nonnatural features referred to in
clause (i) at the lot being appraised;
and
(III) the deduction in price that
would be taken in the market as a
risk allowance if—
(aa) a parcel does not have
adequate 
access 
or 
adequate
sewer or water systems; and
(bb) there is a risk of failure
or material cost overruns in at-
tempting to provide the systems
referred to in item (aa).
(C) REAPPRAISAL FOR AND RECALCULA-
TION OF BASE CABIN USER FEE.—Periodically,
but not less often than once every 10 years, the
Secretary shall recalculate the base cabin user
fee (including conducting any reappraisal re-
quired to recalculate the base cabin user fee).
SEC. 7. CABIN USER FEES.
(a) IN GENERAL.—The Secretary shall establish the
cabin user fee as the amount that is equal to 5 percent
of the value of the lot, as determined in accordance with
section 6, reflecting an adjustment to the market rate of
return based solely on—
(1) the limited term of the authorization;
(2) the absence of significant property rights
normally attached to fee simple ownership; and
(3) the public right of access to, and use of, any
open portion of the lot on which the cabin or other
enclosed improvements are not located.
(b) FEE FOR CARETAKER RESIDENCES.—The base
cabin user fee for a lot on which a caretaker residence
is located shall not be greater than the base cabin user
fee charged for the authorized use of a similar typical lot
in the tract.
(c) ANNUAL CABIN USER FEE IN THE EVENT OF
DETERMINATION NOT TO REISSUE AUTHORIZATION.—If
the Secretary determines that an authorization should not
be reissued at the end of a term, the Secretary shall—
(1) establish as the new base cabin user fee for
the remaining term of the authorization the amount
charged as the cabin user fee in the year that was
10 years before the year in which the authorization
expires; and
(2) calculate the current cabin user fee for each
of the remaining 9 years of the term of the author-
ization by multiplying—
(i) 1⁄10 of the new base cabin user fee; by
(ii) the number of years remaining in the
term of the authorization after the year for
which the cabin user fee is being calculated.
(d) ANNUAL
CABIN
USER
FEE
IN
EVENT
OF
CHANGED CONDITIONS.—If a review of a decision to con-
vert a lot to an alternative public use indicates that the
continuation of the authorization for use and occupancy
of the cabin by the cabin owner is warranted, and the deci-
sion is subsequently reversed, the Secretary may require
the cabin owner to pay any portion of annual cabin user
fees, as calculated in accordance with subsection (d), that
were forgone as a result of the expectation of termination
of use and occupancy of the cabin by the cabin owner.
(e) TERMINATION OF FEE OBLIGATION IN LOSS RE-
SULTING
FROM
ACTS
OF
GOD
OR
CATASTROPHIC
EVENTS.—On a determination by the agency that, due to
an act of God or a catastrophic event, a lot cannot be
safely occupied and that the authorization for the lot
should accordingly be terminated, the fee obligation of the
cabin owner shall terminate effective on the date of the
occurrence of the act or event.
SEC. 8. ANNUAL ADJUSTMENT OF CABIN USER FEE.
(a) IN GENERAL.—The Secretary shall adjust the
cabin user fee annually, using a rolling 5-year average of
a published price index in accordance with subsection (b)
or (c) that reports changes in rural or similar land values
in the State, county, or market area in which the lot is
located.
(b) INITIAL INDEX.—
(1) IN GENERAL.—For the period of 10 years
beginning on the date of enactment of this Act, the
Secretary shall use changes in agricultural land
prices in the appropriate State or county, as re-
ported in the Index of Agricultural Land Prices pub-
lished by the Department of Agriculture, to deter-
mine the annual adjustment to the cabin user fee in
accordance with subsections (a) and (d).
(2) STATEWIDE CHANGES.—In determining the
annual adjustment to the cabin user fee for an au-
thorization located in a county in which agricultural
land prices are influenced by the factors described in
section 6(b)(3), the Secretary shall use average
statewide changes in the State in which the lot is lo-
cated.
(c) NEW INDEX.—
(1) IN
GENERAL.—Not later than 10 years
after the date of enactment of this Act, the Sec-
retary may select and use an index other than the
index described in subsection (b)(2) to adjust a
cabin user fee if the Secretary determines that a dif-
ferent index better reflects change in the value of a
lot over time.
(2) SELECTION PROCESS.—Before selecting a
new index, the Secretary shall—
(A) solicit and consider comments from the
public; and
(B) not later than 60 days before the date
on which the Secretary makes a final index se-
lection, submit any proposed selection of a new
index to—
(i) the Committee on Resources of the
House of Representatives; and
(ii) the Committee on Energy and
Natural Resources of the Senate.
(d) LIMITATION.—In calculating an annual adjust-
ment to the base cabin user fee, the Secretary shall—
(1) limit any annual fee adjustment to an
amount that is not more than 5 percent per year
when the change in agricultural land values exceeds
5 percent in any 1 year; and
(2) apply the amount of any adjustment that
exceeds 5 percent to the annual fee payment for the
next year in which the change in the index factor is
less than 5 percent.
SEC. 9. PAYMENT OF CABIN USER FEES.
(a) DUE DATE FOR PAYMENT OF FEES.—A cabin
user fee shall be paid or prepaid annually by the cabin
owner on a monthly, quarterly, annual, or other schedule,
as determined by the Secretary.
(b) PAYMENT OF EQUAL OR LESSER FEE.—If, in ac-
cordance with section 7, the Secretary determines that the
amount of a new base cabin user fee is equal to or less
than the current base cabin user fee, the Secretary shall
require payment of the new base cabin user fee by the
cabin owner in accordance with subsection (a).
(c) PAYMENT OF GREATER FEE.—If, in accordance
with section 7, the Secretary determines that the amount
of a new base cabin user fee is greater than the current
base cabin user fee, the Secretary shall—
(1) require full payment of the new base cabin
user fee in the first year following completion of the
fee determination procedure if the increase in the
amount of the new base cabin user fee is not more
than 100 percent of the most recently paid cabin
user fee; or
(2) phase in the increase over the current cabin
user fee in approximately equal increments over 3
years if the increase in the amount of the new base
cabin user fee is greater than 100 percent of the
most recently paid base cabin user fee.
(d) REQUIREMENT FOR PAYMENT DURING ARBITRA-
TION, APPEAL, OR JUDICIAL REVIEW.—If arbitration, an
appeal, or judicial review concerning a cabin user fee is
brought in accordance with section 11 or 12, the Secretary
shall—
(1) suspend annual payment by the cabin owner
of any increase in the cabin user fee, pending com-
pletion of the arbitration, appeal, or judicial review;
and
(2) make any adjustments, as necessary, that
result from the findings of the arbitration, appeal, or
judicial review by providing to the cabin owner—
(A)(i) a credit toward future cabin user fee
payments; or
(ii) a refund for any overpayment of the
cabin user fee; and
(c) REQUEST
FOR
RECONSIDERATION
OF
BASE
CABIN USER FEE.—A cabin owner shall submit to the
Secretary any request for reconsideration of the base cabin
user fee, based on the results of the second appraisal, not
later than 60 days after the receipt of the report for a
second appraisal.
(d) RECONSIDERATION
OF
BASE
CABIN
USER
FEE.—On receipt of a request from the cabin owner under
subsection (c) for reconsideration of a base cabin user fee,
not later than 60 days after the date of receipt of the re-
quest, the Secretary shall—
(1) review the initial appraisal of the agency;
(2) review the results and commentary from the
second appraisal;
(3) determine a new base cabin user fee in an
amount that is—
(A) equal to the fee determined by the ini-
tial or the second appraisal; or
(B) within the range of values, if any, be-
tween the initial and second appraisals; and
(4) notify the cabin owner of the amount of the
new base cabin user fee.
SEC. 11. RIGHT OF ARBITRATION.
(a) IN GENERAL.—
(1) REQUEST
FOR
ARBITRATION.—Not later
than 30 days after the receipt of notice of a new
base cabin user fee under section 10(d)(4), the tract
association may request arbitration if a cabin owner
in the tract and the Secretary are unable to reach
agreement on the amount of the base cabin user fee
determined in accordance with section 10.
(2) 
IDENTIFICATION
OF
THIRD-PARTY
NEUTRALS.—If arbitration is requested under para-
graph (1), the Secretary shall promptly request the
Center to develop a list of the names of not fewer
than 20 appraisers and 10 attorneys who possess
appropriate training and experience in valuations of
land and interest in land to serve as qualified third-
party neutrals.
(b) ARBITRATION.—Not later than 30 days after the
receipt of a request from the tract association for arbitra-
tion, the Secretary shall—
(1) notify the Center of the request; and
(2) request the Center to provide to the Sec-
retary and the tract association, within 15 days—
(A) instructions related to arbitration pro-
cedures; and
(B) the list of qualified third-party
neutrals described in subsection (a)(2).
(c) ARBITRATION PANEL.—
(1) IN GENERAL.—Not later than 15 days after
the receipt of the list described in subsection (a)(2),
the Secretary and the tract association may each
recommend the names of 2 appraisers and 1 attor-
ney from the list for consideration in the selection
of an arbitration panel by the Center.
(2) AVAILABILITY OF LIST.—The Secretary and
the tract association shall disclose to each other the
names of third-party neutrals recommended under
paragraph (1).
(3) OPTION
TO
ELIMINATE
RECOMMENDED
NEUTRALS.—The Secretary and the tract association
may each peremptorily eliminate from consideration
for the arbitration panel 1 third-party neutral rec-
ommended under paragraph (1).
(4) SELECTION BY CENTER.—From the third-
party neutrals recommended to the Center under
paragraph (1) that are not eliminated from consider-
ation under paragraph (3), the Center shall select
and retain an arbitration panel consisting of 2 ap-
praisers and 1 attorney.
(5) NOTIFICATION
OF
ESTABLISHMENT.—Not
later than 5 days after the selection of members of
the arbitration panel, the Center shall notify the
Secretary and the tract association of the establish-
ment of the arbitration panel.
(d) ARBITRATION PROCEDURE.—
(1) SUBMISSION OF INFORMATION.—Not later
than 30 days after notification by the Center of the
establishment of the arbitration panel under sub-
section (c)(3), each party shall submit to the arbitra-
tion panel—
(A) the appraisal report of each party, in-
cluding comments, if any, of material dif-
ferences of fact or opinion related to the initial
appraisal or the second appraisal;
(B) a copy of the authorization associated
with any typical lot that was subject to ap-
praisal;
(C) a copy of this Act; and
(D) a copy of appraisal guidelines devel-
oped in accordance with section 6(a)(2).
(2) HEARING
OR
FIELD
INSPECTION.—On
agreement of both parties, the arbitration may be
conducted without a hearing or a field inspection.
(3) SCHEDULE FOR DECISION.—
(A) IN GENERAL.—Except as provided in
subparagraph (B), not later than 60 days after
the receipt of all materials described in para-
graph (1), the arbitration panel shall prepare
and forward to the Secretary a written advisory
decision on the appropriate amount of the base
cabin user fee.
(B) EXTENSION.—If the arbitration panel
or the parties to the arbitration determine that
a hearing or field inspection is necessary, the
date for submission of the advisory decision
under subparagraph (A) shall be extended for—
(i) not more than 30 days; or
(ii) in the case of difficult or haz-
ardous road or weather conditions, such an
additional period of time as is necessary to
complete the inspection.
(4) DETERMINATION OF RECOMMENDED BASE
CABIN
USER
FEE.—The base cabin user fee rec-
ommended by the arbitration panel shall fall within
the range of values, if any, between the initial and
second appraisals submitted to the arbitration panel
by the parties.
(e) ADOPTION OF RECOMMENDED BASE CABIN USER
FEE.—
(1) IN GENERAL.—Not later than 45 days after
the receipt of the recommendation by the arbitration
panel, the Secretary shall make a determination to