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Q: SECTION 1. SHORT TITLE.

This Act may be cited as the ''Free Market Grazing Fees Act''.

SEC. 2. GRAZING FEES ESTABLISHED AT FAIR MARKET VALUE.

(a) Fees Required.--Notwithstanding any other provision of law, the
Secretary of Agriculture and the Secretary of the Interior, with
respect to public grazing lands subject to their respective
jurisdiction, shall establish an annual domestic livestock grazing fee
equal to the fair market value of the grazing lease or permit
concerned.
(b) Commencement of Fees.--The grazing fees required by this
section shall apply beginning with the grazing season that commences on
March 1, 1998.
(c) Factors.--In determining the fair market value of a grazing
lease or permit, the Secretary concerned shall take into account the
following:
(1) The amounts and conditions under which neighboring non-
Federal lands are leased or sold for grazing purposes.
(2) The improvements provided or to be provided by the
lessee or permit holder.
(3) The services to be provided by the United States.
(d) Procedures.--In determining the fair market value of grazing
permits, the Secretary concerned shall publish rules in accordance with
chapter 5 of title 5, United States Code, which ensure that whenever
practicable fair market value is established through competitive
bidding.
(e) Small Family Ranch Exemption.--
(1) Certification for prevailing fees.--The holder of a
Federal grazing lease or permit as of the date of the enactment
of this section who makes a certification to the Secretary
concerned in accordance with this subsection shall be charged
the prevailing grazing fee on that date for the period
beginning on that date and ending on February 28, 2008.
(2) Content of certification.--
(A) Annual income.--The holder of the Federal
grazing lease or permit shall certify that, for the
immediately preceding calendar year--
(i) the holder derived more than half of
the holder's annual income from the ranching
operation associated with the Federal grazing
lease or permit; and
(ii) the holder--
(I) if an individual, has an
adjusted gross annual income (as
defined in the Internal Revenue Code of
1986) of less than $50,000; or
(II) if a person other than an
individual, has total assets of less
than $1,000,000, including the value of
Federal leases or permits of any kind,
including the assets of any entity
owned by, controlled by, or under
common control of, directly or
indirectly, the holder.
(B) Substantial labor.--The holder of the Federal
grazing lease or permit shall certify that, for the
immediately preceding calendar year, the holder--
(i) if an individual, performed substantial
labor in the ranching operation either
personally or using members of the holder's
immediate family; or
(ii) if a person other than an individual,
performed substantial labor in the ranching
operation using the officers of the holder.
(3) Submission of certification.--A certification under
this subsection shall be submitted to the Secretary concerned
before the beginning of each grazing season.
(f) Definitions.--For the purposes of this section:
(1) Public grazing lands.--The term ''public grazing
lands'' means the following:
(A) The National Forest lands (including the
national grasslands) in the 16 contiguous Western
States administered by the United States Forest Service
where domestic livestock grazing is permitted under
applicable law.
(B) The public domain lands administered by the
Bureau of Land Management where domestic livestock
grazing is permitted under applicable law.
(C) The lands within units of the National Park
System on which grazing is permitted under applicable
law.
(2) Secretary concerned.--The term ''Secretary concerned''
means--
(A) the Secretary of Agriculture, with respect to
public grazing lands subject to the jurisdiction of the
Secretary of Agriculture; and
(B) the Secretary of the Interior, with respect to
public grazing lands subject to the jurisdiction of the
Secretary of the Interior.
(g) Effect of Failure to Establish Fees.--No grazing shall be
permitted on any public grazing lands after March 1, 1998, unless the
Secretary of the Interior and the Secretary of Agriculture each affirm
to Congress that grazing fees for all public grazing lands have been
established in compliance with this section.
A:
Free Market Grazing Fees Act - Directs the Secretaries of Agriculture and the Interior to establish fair market value grazing fees for use of their respective public lands. Establishes a prevailing fee exception for current small family ranch leases or permits.