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                                                       Calendar No. 397
113th Congress   }                                         {     Report
                                 SENATE
 2d Session      }                                         {    113-171

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



 
                               CABIN FEES

                                _______
                                

                  May 22, 2014.--Ordered to be printed

                                _______
                                

   Ms. Landrieu, from the Committee on Energy and Natural Resources, 
                        submitted the following

                              R E P O R T

                         [To accompany S. 1341]

    The Committee on Energy and Natural Resources, to which was 
referred the bill (S. 1341) to modify the Forest Service 
Recreation Residence Program as the program 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, reports favorably thereon with an 
amendment and an amendment to the title and recommends that the 
bill, as amended, do pass.
    The amendments are as follows:
  1. On page 2, line 14, strike ``Until'' and insert ``During 
the period beginning on January 1, 2014, and ending on''.
  2. Amend the title so as to read: ``A bill to modify the 
Forest Service recreation residence program to implement a 
simple, equitable, and predictable procedure for determining 
cabin user fees, and for other purposes.''.

                                Purpose

    The purpose of S. 1341 is to establish new rates for 
recreation residence permits on National Forest System lands.

                          Background and Need

    In 1915 the Forest Service began issuing permits for 
individuals to build cabins on National Forest System lands 
under a Recreation Residence program. This program generally 
authorized permits for terms of up to 20 years at a nominal 
fee. Although there was initially relatively little 
recreational use on national forests, over the years use of 
forest lands for recreation residences became highly prized, 
and by the 1950s the Forest Service was directed to charge 
permit fees approaching fair market value.
    With increasing development of similar lands for ski 
resorts and forest and lake communities, the comparable values 
for these permits increased dramatically, occasionally 
resulting in large fee increases for recreation residence 
permits. In response to the controversy resulting from large 
proposed fee increases, Congress several times included fee 
moratoriums as part of the Forest Service's annual 
appropriations bill.
    In an effort to resolve the permit fee valuation issue, in 
2000 Congress enacted the Cabin User Fee Fairness Act (CUFFA) 
as an amendment to the Interior and Related Agencies 
Appropriations Act (title VI of Public Law 106-291). The 
provisions of CUFFA were in large part developed based on input 
from recreation residence permit holders. The law's purpose was 
to ensure that the National Forest System Residence Program 
continued to preserve recreational opportunities for cabin 
owners and users.
    CUFFA established guidelines for the appraisal process, 
based on a percentage of the fair market value of the public 
land. Although the Act was enacted in response to complaints by 
cabin owners of unreasonably high and unpredictable permit 
fees, the controversy over appropriate fee levels has 
continued. Some public lands have a significantly higher market 
value due to their proximity to the recreational opportunities 
available on public lands, so the value of those cabin permits 
increased significantly. Other permit holders faced large fee 
increase when out-of-date appraisals were finally updated 
reflecting new and often times much higher values. According to 
the Forest Service, of the 14,000 cabins that are currently 
permitted, only 8,000 have had a recent appraisal.
    S. 1341 would establish a new fee system for recreation 
residence permits, comprised of an eleven-tier fee system with 
a specified permit fee for each tier, indexed for inflation. 
Each permit would be allocated to a specific tier based on the 
value of the underlying land relative to other permits.

                          Legislative History

    S. 1341 was introduced by Senator Tester and others on July 
23, 2013. The Subcommittee on Public Lands, Forests, and Mining 
held a hearing on S. 1341 on November 20, 2013. At its business 
meeting on December 19, 2013, the Committee ordered the measure 
favorably reported.
    Representative Hastings introduced similar legislation, 
H.R. 1159, in the House of Representatives on March 14, 2013. 
The House Committee on Natural Resources ordered the bill 
reported on March 20, 2013.
    Senator Tester introduced similar legislation in the 112th 
Congress, S. 1906. The Subcommittee on Public Lands and Forests 
held a hearing on March 22, 2012 (S. Hrg. 112-642).

                        Committee Recommendation

    The Senate Committee on Energy and Natural Resources, in 
open business session on December 19, 2013, by a voice vote of 
a quorum present, recommends that the Senate pass S. 1341, if 
amended as described herein.

                          Committee Amendments

    During its consideration of S. 1341, the Committee adopted 
an amendment and an amendment to the title. The amendment 
concerns the interim fee established under section 2. That 
section provides that the interim fee shall be charged until 
the current appraisal cycle for recreational residences is 
completed. The amendment makes the interim fee effective 
January 1, 2014, and staying in effect until the appraisal 
cycle is completed.
    The Committee also adopted an amendment to the title to 
clarify that the bill applies to the entire Forest Service 
recreation residence program, and not just on National Forests 
derived from the public domain.

                      Section-by-Section Analysis

    Section 1 contains the short title, the ``Cabin Fee Act of 
2013.''
    Section 2(a) directs the Secretary of Agriculture 
(Secretary) to establish a fee in accordance with this section 
for the issuance of a special use permit for the use and 
occupancy of recreational residences on National Forest lands.
    Subsection (b) requires the Secretary to complete the 
current appraisal cycle for recreational residences required 
under the Cabin User Fees Fairness Act of 2000 (CUFFA) no later 
than 2 years after the date of enactment of this Act.
    Subsection (c) provides that the Secretary shall assess an 
interim fee for recreational residences on National Forest 
lands beginning on January 1, 2014 and ending on the date on 
which the current appraisal cycle is completed under subsection 
(b). The interim fee is to be equal to the lesser of the 
determined under CUFFA (with any annual fee increase limited to 
not more than 25 percent), or $5,500.
    Subsection (d)(1) requires the Secretary to make a one-time 
adjustment to the value of each appraised recreational 
residence lot to reflect any change in value occurring after 
the date of the most recent appraisal. The adjustment is to 
take place upon the completion of the current appraisal cycle 
and shall be adjusted in accordance with the 4th quarter 2012 
National Association of Homebuilders/Wells Fargo Housing 
Opportunity Index.
    Paragraph (2) authorizes a recreational residence permittee 
to arrange for a second appraisal of a recreational residence 
lot, so long as the appraisal is conducted in accordance with 
applicable Federal standards. The value established by a second 
appraisal shall be the value assigned to the lot for purposes 
of fee calculation.
    Subsection (e)(1) contains the table establishing fees for 
recreational residences on National Forest lands which will 
become effective after the lot values have been adjusted in 
accordance with subsection (d). The table contains 11 fee 
tiers, with annual fees ranging between $500 and $5,500. Each 
fee tier includes a specified percentage of recreational 
residence permits, as identified in the table.
    Paragraph (2) provides that annual increases or decreases 
in the fee shall be determined in accordance with changes in 
the Implicit Price Deflator for the Gross Domestic Product 
published by the Bureau of Economic Analysis, applied on a 5-
year rolling average.
    Paragraph (3) states that the Secretary may suspend or 
reduce the annual fee if access to, or occupancy of a 
recreational residence is significantly restricted, and that a 
decision by the Secretary to suspend or reduce the fee may be 
appealed.
    Subsection (f) requires the Secretary to submit to the 
Senate and House authorizing committees a report analyzing the 
annual fees to ensure that the they reflect fair value for the 
use of the land for recreational residence purposes, taking 
into account all use limitations and restrictions. The report 
is to be submitted 10 years after the date of enactment of this 
Act, and shall include any recommendations of the Secretary 
with respect to modifying the fee system.
    Section 3 establishes a new $1,200 fee for the issuance of 
a new recreational residence permit due to a change of 
ownership. The Secretary shall adjust the fee annually in the 
same manner as the annual recreation residence fees are 
adjusted.
    Section 4(a) clarifies that nothing in this Act limits or 
restricts and right, title, or interest of the United States in 
or to any land or resource in the National Forest System.
    Subsection (b) prohibits the Secretary from establishing or 
imposing a fee or condition under this Act for permits in 
Alaska that is inconsistent with section 1303(d) of the Alaska 
National Interest Lands Conservation Act (16 U.S.C. 3193(d)). 
That provision provides for the renewal or continuation of 
valid leases or permits in effect on December 2, 1980, for 
cabins, homesites, or similar structures on Federal lands in 
Alaska.
    Section 5 authorizes the Forest Service to retain any fees 
collected under this Act beginning on October 1, 2023, and to 
expend them, without further appropriation, to administer the 
recreational residence program and other recreation programs 
carried out on National Forest System land.
    Section 6 repeals CUFFA effective on the date of the 
assessment of annual permit fees in accordance with section 
2(e), as certified to Congress by the Secretary.

                   Cost and Budgetary Considerations

    The following estimate of costs of this measure has been 
provided by the Congressional Budget Office:

S. 1341--Cabin Fee Act of 2013

    Summary: S. 1341 would establish a new schedule for the 
fees paid to the federal government by individuals who own 
cabins located on Forest Service lands. The bill also would 
authorize the Forest Service to spend, without further 
appropriations, receipts from cabin fees after 2023. Finally, 
the bill would establish a fee that would be assessed on 
individuals who transfer ownership of their cabins. Based on 
information provided by the Forest Service, CBO estimates that 
enacting the legislation would increase net direct spending by 
$71 million over the 2015-2024 period; therefore, pay-as-you-go 
procedures apply. Enacting S. 1341 would not affect revenues.
    S. 1341 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 S. 1341 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--
                                                             -------------------------------------------------------------------------------------------
                                                               2015   2016   2017   2018   2019   2020   2021   2022   2023   2024  2015-2019  2015-2024
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                               CHANGES IN DIRECT SPENDINGReduction in Cabin Fees:
  Estimated Budget Authoritya...............................      7      4      4      4      4      4      4      5      5      5        23         46
  Estimated Outlays.........................................      7      4      4      4      4      4      4      5      5      5        23         46
Administrative Costs:
  Estimated Budget Authority................................      0      0      0      0      0      0      0      0      0     31         0         31
  Estimated Outlays.........................................      0      0      0      0      0      0      0      0      0     31         0         31
Cabin Transfer Fee:
  Estimated Budget Authority................................      *      *      *     -1     -1     -1     -1     -1     -1     -1        -2         -5
  Estimated Outlays.........................................      *      *      *     -1     -1     -1     -1     -1     -1     -1        -2         -5
                                                             -------------------------------------------------------------------------------------------
Total Changes:
  Estimated Budget Authority................................      7      3      4      4      4      4      4      4      4     35        20         71
  Estimated Outlays.........................................      7      3      4      4      4      4      4      4      4     35        20        71
--------------------------------------------------------------------------------------------------------------------------------------------------------
Notes: Amounts may not sum to totals because of rounding; *= between $0 and -$500,000.
aBecause the fees already paid by some cabin owners for 2014 would exceed the amounts that would be owed in that year under the bill, CBO expects that
  the Forest Service would provide refunds to those cabin owners in 2015.

    Basis of Estimate: For this estimate, CBO assumes that the 
legislation will be enacted in 2014.
    CBO estimates that enacting S. 1341 would increase net 
direct spending by $71 million over the 2015-2024 period. Over 
that period, fees collected from cabin owners by the Forest 
Service would total $46 million less than would be collected 
under current law (such losses are shown as an increase in 
direct spending). In addition, direct spending for 
administrative costs would increase by about $31 million in 
2024. Finally, proceeds from the cabin transfer fee required 
under S. 1341 would increase receipts (thus reducing direct 
spending) by $5 million over the 2015-2024 period.

Reduction in Cabin Fees

    S. 1341 would establish a new schedule for fees assessed on 
cabins located on Forest Service lands. Under current law, 
owners of the roughly 14,000 affected cabins pay an annual fee 
to the federal government equal to 5 percent of the appraised 
value of the occupied land. Based on information provided by 
the agency, CBO estimates that fee collections from those 
cabins will total $29 million in 2014 and that those 
collections will increase to about $36 million a year by 2024. 
Collections will increase over that period as the agency 
completes appraisals of the affected Forest Service lands, 
implements new fees based on those appraisals, and annually 
adjusts fees on all cabins to account for inflation.
    Under the new fee schedule that would be established by the 
bill, cabin owners would pay an annual fee per cabin of at 
least $500 plus an additional amount that would depend on the 
appraised value of the occupied land and the maximum fee set by 
the Forest Service (which could not exceed $5,500). CBO expects 
that those fees would go into effect in 2017, after the Forest 
Service has completed all of the appraisals required under the 
bill. Once implemented, CBO estimates that new cabin fee 
collections would total $27 million in 2017 and would reach $31 
million by 2024.
    Under S. 1341, the fees paid by cabin owners would increase 
more slowly over the 2014-2016 period than they would under 
current law. In addition, CBO expects that under the 
legislation, the Forest Service would set a maximum fee of less 
than $5,500 per cabin beginning in 2017. As a result, CBO 
estimates that, on average, cabin owners would pay about $400 
less in fees per cabin under the bill than they would under 
current law over the 2014-2024 period. That estimate 
incorporates an adjustment for inflation and CBO's estimate 
that some cabins would be abandoned under current law because 
of higher cabin fees. In total, CBO estimates that implementing 
this provision would reduce offsetting receipts by $46 million 
over the 2015-2024 period.

Administrative Costs

    The bill would authorize the Forest Service to spend, 
without further appropriations, receipts from cabin fees 
collected after 2023. The agency would use those amounts to 
cover the costs of administering recreation programs in 
National Forests. Because receipts from cabin fees cannot be 
spent without further appropriation under current law, CBO 
estimates that enacting this provision would increase direct 
spending by $31 million in 2024.

Cabin Transfer Fees

    S. 1341 would require the Forest Service to collect a fee 
of $1,200 from cabin owners who transfer ownership of their 
cabins. That fee would be adjusted annually to account for 
inflation. CBO estimates that enacting this provision would 
increase offsetting receipts, which are treated as reductions 
in direct spending, by $5 million over the 2015-2024 period, 
based on information provided by the Forest Service regarding 
the number of permits issued to new owners each year.
    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 S. 1341 AS ORDERED REPORTED BY THE SENATE COMMITTEE ON ENERGY AND NATURAL RESOURCES ON DECEMBER 19, 2013
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                   By fiscal year, in millions of dollars--
                                                     ---------------------------------------------------------------------------------------------------
                                                       2014   2015   2016   2017   2018   2019   2020   2021   2022    2023   2024  2014-2019  2014-2024
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                       NET INCREASE OR DECREASE (-) IN THE DEFICITStatutory Pay-As-You-Go Impact......................      0      7      3      4      4      4      4      4       4      4     35        20         71
--------------------------------------------------------------------------------------------------------------------------------------------------------

    Intergovernmental and private-sector impact: S. 1341 
contains no intergovernmental or private-sector mandates as 
defined in UMRA and would impose no costs on state, local, or 
tribal governments.
    Previous CBO estimates: On April 5, 2013, CBO transmitted a 
cost estimate for H.R. 1159, the Cabin Fee Act of 2013, as 
ordered reported by the House Committee on Natural Resources on 
March 20, 2013. The Senate bill would require additional 
appraisals to be conducted following the completion of the 
ongoing appraisal cycle and would allow the Forest Service 
flexibility in establishing a new maximum fee for cabins. In 
addition, under S. 1341, the cabin transfer fee would be 
adjusted for inflation and affect more cabin owners. Finally, 
the cost estimate for S. 1341 incorporates new information 
provided by the agency regarding the appraised values of all 
cabins located on Forest Service lands. Those differences are 
reflected in the cost estimates for the two bills.
    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.

                      Regulatory Impact Evaluation

    In compliance with paragraph 11(b) of rule XXVI of the 
Standing Rules of the Senate, the Committee makes the following 
evaluation of the regulatory impact which would be incurred in 
carrying out S. 1341.
    The bill would directly affect approximately 14,000 holders 
of recreation residence permits on National Forest System 
lands. However, the bill is not a regulatory measure in the 
sense of imposing Government-established standards or 
significant economic responsibilities on private individuals 
and businesses. The Department of Agriculture has identified 
the cost of administering the recreation residence program, and 
the cost of conducting appraisals of cabin lots required under 
current law in particular, as a significant financial burden on 
the agency. S. 1341 will significantly reduce that burden by 
eliminating the need for periodic appraisals.
    No personal information would be collected in administering 
the program. Therefore, there would be no impact on personal 
privacy.
    Little, if any, additional paperwork would result from the 
enactment of S. 1341, as ordered reported.

                   Congressionally Directed Spending

    S. 1341, as reported, does not contain any congressionally 
directed spending items, limited tax benefits, or limited 
tariff benefits as defined in rule XLIV of the Standing Rules 
of the Senate.

                        Executive Communications

    The testimony provided by Forest Service at the November 
20, 2013, Subcommittee on Public Lands, Forests, and Mining 
hearing on S. 1341 follows:

Statement of Leslie A. C. Weldon, Deputy Chief, National Forest System, 
               Forest Service, Department of Agriculture

    Chairman Manchin, Ranking Member Barrasso and members of 
the Subcommittee, thank you for the opportunity to appear 
before you today to provide the Department of Agriculture's 
views on S. 1341, the Cabin Fee Act of 2013.
    The Department supports S. 1341.
    In the early part of the twentieth century, the Forest 
Service began introducing Americans to the beauty and grandeur 
of their National Forests. One way to accomplish this objective 
was to permit individuals to build cabins for summertime 
occupancy and use within the National Forests. Cabin owners 
were permitted to occupy and use National Forest System (NFS) 
lands during the summer months in exchange for a fee. In 1915, 
the agency began to issue permits of up to twenty years for 
occupancy and use of NFS land. At that time, there was 
relatively little recreational use of the National Forests. 
Today, the National Forests host over 175 million visitors per 
year. When this recreational cabin program began, there was 
limited interest in building and owning a remote cabin on NFS 
land. In the early years, fees were nominal, but since the 
1950s, the Forest Service has been mandated to obtain fees 
approximating market value for the occupancy and use of NFS 
land. Increasing fees have led to controversy and have resulted 
in enactment of multiple fee moratoriums and caps over the 
years. The current law (Public Law 106-291, the Cabin Use Fee 
Fairness Act of 2000 (CUFFA)) was the last attempt to achieve 
an equitable fee for the use of National Forest System land.
    CUFFA prescribes parameters for the appraisal process and 
the fees are based on five percent of the appraised market 
value of the lot under permit adjusted annually for inflation. 
The agency began the appraisal process pursuant to CUFFA in 
2007, and is continuing that effort presently. As cabin lot 
permitees received notice of the new fees, some have 
experienced substantial increases because the old fees were 
based on appraisals completed ten to thirty years ago. In 
response, Congress included appropriations language for 
calendar year (CY) 2010 which limited fee increases to no more 
than 25% of the fee paid in calendar year 2009. For CY 2011 
Recreation Residences fees were held at the fee paid the 
previous year (CY 2010) however, the 2011 fee was adjusted for 
inflation. For CY 2012 Recreation Residence fees that were 
subject to a new base fee resulting from an appraisal in either 
CY 2011 or CY 2012 were implemented and limited to a 25% 
increase over the amount billed in CY 2011. If the new base fee 
to be implemented did not exceed 125% of the fee paid in CY 
2011, the fee was fully implemented. Recreation residence fees 
that were not subject to first year implementation of a new 
base fee were subject to the annual index. For CY 2013, the 
Agency issued bills pursuant to the annual fee determined under 
CUFFA for those recreation residence lots that had current 
appraisals implemented after an administrative appeal review. 
If the appraisal for a recreation residence lot was not 
completed or the subject of an administrative appeal for CY 
2013, then the CY 13 annual fee was based upon the previous 
year's fee adjusted for inflation.
    S. 1341 the Cabin Fee Act of 2013 would replace CUFFA on 
National Forest System lands and revise the procedures for 
determining the amount the holder of a Special Use Permit for a 
private cabin on the National Forests must pay to occupy and 
use the underlying public property. The bill would require the 
agency to place cabin lot values in eleven categories based on 
an appraisal and complete remaining appraisals within two years 
of enactment. It would create eleven tiers or categories 
ranging from $500.00 to $5,500.00 annually and provide for an 
additional payment on the sale or transfer of the cabin. The 
Department appreciates the addition of the tenth and eleventh 
tiers which helps to close the gap between annual fees and 
market value. However, to further close the gap between annual 
fees and market value, the Department would like to discuss 
with the Committee a graduated transfer fee that better 
reflects the value of the fee tiers.
    During the transition from CUFFA to the Cabin Fee Act the 
Secretary would be required to assess an interim annual fee for 
recreational residences on National Forest System lands. The 
interim fee amount must be equal to the lesser of the fee 
determined under CUFFA, subject to the requirement that any 
increase over the fee assessed during the previous year shall 
be limited to not more that 25% or $5,500.00, which is the 
scheduled amount for tier 11. This provision of the Cabin Fee 
Act would ensure that Recreational Residence permit holders 
would have some protection from steeply escalating annual 
permit fees.
    The Bill would require an annually adjustable transfer fee 
of $1,200.00 for the issuance of a new recreational residence 
lot permit due to a change of ownership of the recreational 
residence. The Bill requires the Secretary to annually increase 
or decrease the transfer fee, based on the Implicit Price 
Deflator of the Gross Domestic Product, applied on a rolling 5-
year average. This provision would ensure that the United 
States would be able to collect a flat fee for transferring a 
Recreational Residence lot permit.
    The cost of administration for the Recreational Residence 
Program pursuant to CUFFA is a significant financial burden for 
the agency. Based on a recent study in California (US Forest 
Service, Region 5), the Agency estimates the cost of 
administration is from $500 to $700 per cabin lot, along with 
recurring appraisal costs that can approach $1 million per 
year. The study showed that the administration of this program 
accounts for some fifteen percent of this Region's total 
recreation budget. While there are some 14,000 cabin lot 
permitees, there are 175 million visitors to the National 
Forests each year. S. 1341 would reduce the administrative 
burden by eliminating the requirements for reappraisals not 
less than every 10 years while applying the savings to provide 
for a quality recreational experience with continued protection 
of the environment for all who use the National Forests.
    The Department wishes to clarify the purpose of the bill 
which refers to lands ``derived from the public domain,'' and 
the bill text refers to National Forest System lands. We would 
request that the bill purpose be changed to reflect the bill 
text so that it is clear that this legislation applies to all 
National Forest System land; that is acquired lands and lands 
reserved from the public domain.
    The Forest Service recognizes that there are helpful 
reforms in this bill over the current Public Law (106-291). 
From an administrative perspective, this bill would reduce the 
agency's re-appraisal costs while providing resources to manage 
the program in the long term. For the Recreational Residence 
permit holders, it would provide certainty for cabin fees.
    In closing, the Department supports S. 1341 and appreciates 
the opportunity to work with the bill's sponsor and the 
Committee's staff to develop legislation that will benefit 
taxpayers, cabin owners, and other users of the National 
Forests and Grasslands, and which can be administered without 
undue burden on the agency.
    This concludes my statement and I would be happy to answer 
any questions you may have.

                        Changes in Existing Law

    In compliance with paragraph 12 of rule XXVI of the 
Standing Rules of the Senate, changes in existing law made by 
the bill S. 1341, as ordered 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):

                  CABIN USER FEES FAIRNESS ACT OF 2000


    Title VI of the Department of the Interior and Related Agencies 
                        Appropriations Act, 2001


                           Public Law 106-291


 [TITLE VI--USER FEES UNDER FOREST SYSTEM RECREATION RESIDENCE PROGRAM

[SEC. 601. SHORT TITLE.

    [This title may be cited as the ``Cabin User Fee Fairness 
Act of 2000''.

[SEC. 602. FINDINGS.

    [Congress finds that--
          [(1) 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; and
          [(2) the fact that current appraisal procedures have, 
        in certain circumstances, been inconsistently applied 
        in determining fair market values for residential lots 
        demonstrates that problems exist in accurately 
        reflecting market values.

[SEC. 603. PURPOSES.

    [The purposes of this title are--
          [(1) to ensure, to the maximum extent practicable, 
        that the National Forest System recreation residence 
        program is managed to preserve the opportunity for 
        individual and family-oriented recreation; and
          [(2) to develop and implement a more consistent 
        procedure for determining cabin user fees, taking into 
        consideration the limitations of an authorization and 
        other relevant market factors.

[SEC. 604. DEFINITIONS.

    [In this title:
          [(1) Agency.--The term ``agency'' means the Forest 
        Service.
          [(2) Authorization.--The term ``authorization'' means 
        a special use permit for the use and occupancy 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 fee for an authorization that results 
        from the appraisal of a lot as determined in accordance 
        with sections 606 and 607.
          [(4) Cabin.--The term ``cabin'' means a privately 
        built and owned recreation residence that is authorized 
        for use and occupancy on National Forest System land.
          [(5) 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.
          [(6) 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 title.
          [(7) Caretaker cabin.--The term ``caretaker cabin'' 
        means a caretaker residence occupied in limited cases 
        in which caretaker services are necessary to maintain 
        the security of a tract.
          [(8) Current cabin user fee.--The term ``current 
        cabin user fee'' means the most recent cabin user fee 
        that results from an annual adjustment to the base 
        cabin user fee in accordance with section 608.
          [(9) Lot.--The term ``lot'' means a parcel of land in 
        the National Forest System--
                  [(A) on which a cabin owner is authorized to 
                build, use, occupy, and maintain a cabin and 
                related improvements; and
                  [(B) that is considered to be in its natural, 
                native state at the time at which a use of the 
                lot described in subparagraph (A) is first 
                permitted by the Secretary.
          [(10) Natural, native state.--The term ``natural, 
        native state'' means the condition of a lot or site, 
        free of any improvements, at the time at which the lot 
        or site is first authorized for recreation residence 
        use by the agency.
          [(11) Program.--The term ``program'' means the 
        recreation residence program established under the 
        authority of 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).
          [(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 established 
        location within a National Forest containing 1 or more 
        cabins authorized in accordance with the program.
          [(14) Tract association.--The term ``tract 
        association'' means a cabin owner association in which 
        all cabin owners within a tract are eligible for 
        membership.
          [(15) Typical lot.--The term ``typical lot'' means a 
        cabin lot, or a 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. 605. ADMINISTRATION OF RECREATION RESIDENCE PROGRAM.

    [The Secretary shall ensure, to the maximum extent 
practicable, that the basis and procedure for calculating cabin 
user fees results in a fee for an authorization that reflects, 
in accordance with this title--
          [(1) the market value of a lot; and
          [(2) regional and local economic influences.

[SEC. 606. APPRAISALS.

    [(a) Requirements for Conducting Appraisals.--In 
implementing and conducting an appraisal process for 
determining cabin user fees, the Secretary shall--
          [(1) complete an inventory of improvements that were 
        paid for by--
                  [(A) the agency;
                  [(B) third parties; or
                  [(C) cabin owners (or predecessors of cabin 
                owners),
        during the completion of which the Secretary shall 
        presume that a cabin owner, or a predecessor of the 
        owner, has paid for the capital costs of any utility, 
        access, or facility serving the lot being appraised, 
        unless the Forest Service produces evidence that the 
        agency or a third party has paid for the capital costs;
          [(2) establish an appraisal process to determine the 
        market value of the fee simple estate of a typical lot 
        or lots considered to be in a natural, native state, 
        subject to subsection (b)(4)(A);
          [(3) enter into a contract with an appropriate 
        professional appraisal organization to manage the 
        development of specific appraisal guidelines in 
        accordance with subsection (b), subject to public 
        comment and congressional review;
          [(4) require that an appraisal be performed by a 
        State-certified general real estate appraiser, selected 
        by the Secretary and licensed to practice in the State 
        in which the lot is located;
          [(5) provide the appraiser with appraisal guidelines 
        developed in accordance with this title;
          [(6) notwithstanding any other provision of law, 
        require the appraiser to coordinate the appraisal 
        closely with affected parties by seeking information, 
        cooperation, and advice from cabin owners and tract 
        associations;
          [(7) require that the appraiser perform the appraisal 
        in compliance with--
                  [(A) the most current edition of the Uniform 
                Standards of Professional Appraisal Practice in 
                effect on the date of the appraisal;
                  [(B) the most current edition of the Uniform 
                Appraisal Standards for Federal Land 
                Acquisitions that is in effect on the date of 
                the appraisal; and
                  [(C) the specific appraisal guidelines 
                developed in accordance with this title;
          [(8) require that the appraisal report--
                  [(A) be a full narrative report, in 
                compliance with the reporting standards of the 
                Uniform Standards of Professional Appraisal 
                Practice; and
                  [(B) comply with the reporting guidelines 
                established by the Uniform Appraisal Standards 
                for Federal Land Acquisitions; 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 supported.
                  [(b) Specific Appraisal Guidelines.--In the 
                development of specific appraisal guidelines in 
                accordance with subsection (a)(3), the 
                instructions to an appraiser shall require, at 
                a minimum, the following:
          [(1) Appraisal of a typical lot.--
                [(A) In general.--In conducting an appraisal 
                under this section, the appraiser--
                          [(i) shall not appraise each 
                        individual lot;
                          [(ii) shall appraise a typical lot or 
                        lots, selected by the cabin owners and 
                        the agency in a manner consistent with 
                        the policy of the program; and
                          [(iii) shall be provided, and give 
                        appropriate consideration to, any 
                        information contained in the inventory 
                        of improvements relating to the lot 
                        being appraised.
                  [(B) Estimate of market value of typical 
                lot.--
                          [(i) In general.--The appraiser shall 
                        estimate the market value of a typical 
                        lot in accordance with this title.
                          [(ii) Equivalence to legally 
                        subdivided lot.--In selecting a 
                        comparable sale under this title, the 
                        appraiser shall recognize that the 
                        typical lot will not usually be 
                        equivalent to a legally subdivided lot.
          [(2) Exception for certain sales of land.--In 
        conducting an appraisal under this title, the 
        appraiser--
                  [(A) shall not select sales of comparable 
                land that are sales of land within developed 
                urban areas; and
                  [(B) should not, in most circumstances, 
                select a sale of comparable land that includes 
                land that is encumbered by a conservation or 
                recreational easement that is held by a 
                government or institution, except land that is 
                limited to use as a site for 1 home.
          [(3) Adjustments for typical value influences.--
                  [(A) In general.--The appraiser shall 
                consider, and adjust as appropriate, the price 
                of sales of comparable land for all typical 
                value influences described 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;
                                  [(III) restrictions imposed 
                                by the agency; or
                                  [(IV) other factors;
                          [(iii) the presence of marketable 
                        timber;
                          [(iv) limitations on, or the absence 
                        of, services such as law enforcement, 
                        fire control, road maintenance, or snow 
                        plowing;
                          [(v) the condition and regulatory 
                        compliance of any site improvements; 
                        and
                          [(vi) any other typical value 
                        influences described in standard 
                        appraisal literature.
          [(4) Adjustments to sales of comparable parcels.--
                  [(A) Utilities, access, or facilities.--
                          [(i) Agency.--Utilities, access, or 
                        facilities serving a lot that are 
                        provided by the agency shall be 
                        included as features of the lot being 
                        appraised.
                          [(ii) Cabin owners.--Utilities, 
                        access, or facilities serving a lot 
                        that are provided by the cabin owner 
                        (or a predecessor of the cabin owner) 
                        shall not be included as a feature of 
                        the lot being appraised.
                          [(iii) Third parties.--Utilities, 
                        access, or facilities serving a lot 
                        that are provided by a third party 
                        shall not be included as a feature of 
                        the lot being appraised unless, in 
                        accordance with subsection (a)(1), the 
                        agency determines that the capital 
                        costs have not been or are not being 
                        paid by the cabin owner (or a 
                        predecessor of the cabin owner).
                          [(iv) Withdrawal of utility or access 
                        by agency.--If, during the term of an 
                        authorization, the agency or an act of 
                        God creates a substantial and 
                        materially adverse change in--
                                  [(I) the provision or 
                                maintenance of any utility or 
                                access; or
                                  [(II) a qualitative feature 
                                of the lot or immediate 
                                surroundings,
                        [the cabin owner shall have the right 
                        to request, and, at the discretion of 
                        the Secretary, obtain a new 
                        determination of the base cabin user 
                        fee at the expense of the agency.
                  [(B) Adjustment for exclusion.--In a case in 
                which any comparable sale includes utilities, 
                access, or facilities that are to be excluded 
                in the appraisal of the subject lot, the price 
                of the comparable sale shall be adjusted, as 
                appropriate.
                  [(C) Adjustment process.--
                          [(i) In general.--The appraiser shall 
                        consider and adjust, as appropriate, 
                        the price of each sale of a comparable 
                        parcel for all nonnatural features 
                        referred to in subparagraph (A)(ii) 
                        that--
                                  [(I)(aa) are present at, or 
                                add value to, the comparable 
                                parcel; but
                                  [(bb) are not present at the 
                                lot being appraised; or
                                  [(II) are not included in the 
                                appraisal as described in 
                                subparagraph (A).
                          [(ii) Adjustments.--
                                  [(I) In general.--In a case 
                                in which the price of a parcel 
                                sold is to be adjusted in 
                                accordance with subparagraph 
                                (B), the adjustment may be 
                                based on an analysis of market 
                                or cost information or both.
                                  [(II) Cost information.--If 
                                cost information is used as the 
                                basis of an adjustment under 
                                subclause (I), the cost 
                                information shall be supported 
                                by direct market evidence.
                          [(iii) Analysis of cost 
                        information.--An analysis of cost 
                        information under clause (ii)(I) should 
                        include allowances, as appropriate, if 
                        the allowances are consistent with--
                                  [(I) the Uniform Standards of 
                                Professional Appraisal Practice 
                                in effect on the date of the 
                                analysis; and
                                  [(II) the Uniform Appraisal 
                                Standards for Federal Land 
                                Acquisition.
                  [(D) Reappraisal for and recalculation 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 
                required to recalculate the base cabin user 
                fee).

[SEC. 607. 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 market 
value of the lot, as determined in accordance with section 606, 
reflecting an adjustment to the typical market rate of return 
due to restrictions imposed by the permit, including--
          [(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 Cabin.--The base cabin user fee for 
a lot on which a caretaker cabin 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 authorization 
        by multiplying--
                  [(A) \1/10\ of the new base cabin user fee; 
                by
                  [(B) 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 convert 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 decision is subsequently reversed, 
the Secretary may require the cabin owner to pay any portion of 
annual cabin user fees 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 Resulting From 
Acts of God or Catastrophic Events.--On a determination by the 
agency that, because of an act of God or a catastrophic event, 
a lot cannot be safely occupied and 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. 608. 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.--
          [(I) In general.--For the period of 10 years 
        beginning on the date of enactment of this title, the 
        Secretary shall use changes in agricultural land prices 
        in the appropriate State or county, as reported in the 
        Index of Agricultural Land Prices published by the 
        Department of Agriculture, to determine 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 authorization 
        located in a county in which agricultural land prices 
        are influenced by the value influences described in 
        section 606(b)(3), the Secretary shall use average 
        statewide changes in the State in which the lot is 
        located.
    [(c) New Index.--
          [(1) In general.--Not later than 10 years after the 
        date of enactment of this title, the Secretary may 
        select and use an index other than the method of 
        adjustment of a cabin user fee described in subsection 
        (b)(2) to adjust a cabin user fee if the Secretary 
        determines that a different 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 
                selection, submit any proposed selection of a 
                new index to--
                          [(i) the Committee on Resources of 
                        the House of Representatives; and
                          [(ii) the Committee on Agriculture, 
                        Nutrition, and Forestry of the Senate.
    [(d) Limitation.--In calculating an annual adjustment to 
the base cabin user fee as determined by the initial index 
described in section (b), 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. 609. PAYMENT OF CABIN USER FEES.

    [(a) Due Date for Payment of Fees.--A cabin user fee shall 
be prepaid annually by the cabin owner.
    [(b) Payment of Equal or Lesser Fee.--If, in accordance 
with section 607, the Secretary determines that the amount of a 
new base cabin user fee is equal to or less than the amount of 
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 607, the Secretary determines that the amount of a new 
base cabin user fee is greater than the amount of 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 current base cabin user fee; or
          [(2) phase in the increase over the current base 
        cabin user fee in approximately equal increments over 3 
        years if the increase in the amount of the new base 
        cabin user fee is more than 100 percent of the current 
        base cabin user fee.

[SEC. 610. RIGHT OF SECOND APPRAISAL.

    [(a) Right of Second Appraisal.--On receipt of notice from 
the Secretary of the determination of a new base cabin user 
fee, the cabin owner--
          [(1) not later than 60 days after the date on which 
        the notice is received, may notify the Secretary of the 
        intent of the cabin owner to obtain a second appraisal; 
        and
          [(2) may obtain, within 1 year following the date of 
        receipt of the notice under this subsection, at the 
        expense of the cabin owner, a second appraisal of the 
        typical lot on which the initial appraisal was 
        conducted.
    [(b) Conduct of Second Appraisal.--In conducting a second 
appraisal, the appraiser selected by the cabin owner shall--
          [(1) have qualifications equivalent to the appraiser 
        that conducted the initial appraisal in accordance with 
        section 606(a)(4);
          [(2) use the appraisal guidelines used in the initial 
        appraisal in accordance with section 606(a)(5);
          [(3) consider all relevant factors in accordance with 
        this title (including guidelines developed under 
        section 606(a)(3)); and
          [(4) notify the Secretary of any material differences 
        of fact or opinion between the initial appraisal 
        conducted by the agency and the second appraisal.
    [(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 the 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 request, 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 base cabin user fee 
                determined by the initial or the second 
                appraisal; or
                  [(B) within the range of values, if any, 
                between the initial and second appraisals; and
          [(4) notify the cabin owner of the amount of the new 
        base cabin user fee.

[SEC. 611. RIGHT OF APPEAL AND JUDICIAL REVIEW.

    [(a) Right of Appeal.--Notwithstanding any action of a 
cabin owner to exercise rights in accordance with section 610, 
the Secretary shall by regulation grant the cabin owner the 
right to an administrative appeal of the determination of a new 
base cabin user fee.
    [(b) Judicial Review.--A cabin owner that is adversely 
affected by a final decision of the Secretary under this title 
may bring a civil action in United States district court.

[SEC. 612. CONSISTENCY WITH OTHER LAW AND RIGHTS.

    [(a) Consistency With Rights of the United States.--Nothing 
in this title 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. 613. REGULATIONS.

    [Not later than 2 years after the date of enactment of this 
title, the Secretary shall promulgate regulations to carry out 
this title.

[SEC. 614. TRANSITION PROVISIONS.

    [(a) Assessment of Annual Fees.--For the period of time 
determined under subsection (b), the Secretary shall charge 
each cabin owner an annual fee as follows:
          [(1) Lots not appraised since september 30, 1995.--
        For a lot that has not been appraised since September 
        30, 1995, the annual fee shall be equal to the amount 
        of the annual fee in effect on the date of enactment of 
        this title, adjusted annually to reflect changes in the 
        Implicit Price Deflator-Gross National Product Index.
          [(2) Lots appraised on or after september 30, 1995.--
                  [(A) In general.--Except as provided in 
                subparagraph (B), for a lot that has been 
                appraised on or after September 30, 1995, the 
                annual fee shall be equal to the amount of the 
                fee in effect on the date of enactment of this 
                title, adjusted annually to reflect changes in 
                the Implicit Price Deflator-Gross National 
                Product Index.
                  [(B) Appraisals resulting in base fee 
                increase.--
                          [(i) In general.--Except as provided 
                        in clause (ii), for a lot that has been 
                        appraised on or after September 30, 
                        1995, for which the appraisal resulted 
                        in an increase of the base fee by an 
                        amount greater than $3,000, the annual 
                        fee shall be equal to the sum of $3,000 
                        plus the amount of the annual fee in 
                        effect on October 1, 1996, adjusted 
                        annually to reflect the percentage 
                        change in the Implicit Price Deflator-
                        Gross National Product Index.
                        [(ii) Fees paid after request of new 
                        appraisal or peer review.--If--
                                  [(I) the cabin owner of a lot 
                                described in clause (i) 
                                requests a new appraisal or 
                                peer review under subsection 
                                (c); and
                                  [(II) the base cabin user fee 
                                established as a result of the 
                                appraisal or peer review is 
                                determined to be an amount that 
                                is 90 percent or more of the 
                                fee in effect for the lot as 
                                determined by an appraisal 
                                conducted on or after September 
                                30, 1995,
                        the Secretary shall charge the cabin 
                        owner, in addition to the annual fee 
                        that would otherwise have been due 
                        under section 609, the difference 
                        between the base cabin user fee 
                        determined through the conduct of the 
                        new appraisal or peer review and the 
                        annual fee that would otherwise have 
                        been due under section 609, to be 
                        assessed retroactively for each year 
                        beginning with the year in which the 
                        previous appraisal was conducted, and 
                        to be paid in 3 equal annual 
                        installments.
    [(b) Term.--
          [(1) Lots not appraised since september 30, 1995.--
        For a lot that has not been appraised since September 
        30, 1995, the Secretary shall charge fees in accordance 
        with subsection (a)(2)(A) until--
                  [(A) a base cabin user fee is determined in 
                accordance with--
                          [(i) this title; or
                          [(ii) regulations and policies in 
                        effect on the date of enactment of this 
                        title; and
                  [(B) the right of the cabin owner to a second 
                appraisal under section 610 is exhausted.
          [(2) Lots appraised on or after september 30, 1995.--
        For a lot that has been appraised on or after September 
        30, 1995, the Secretary shall charge fees under 
        subsection (a)(2) until--
                  [(A) the cabin owner requests a new appraisal 
                or peer review, and a base cabin user fee is 
                established, under subsection (c); or
                  [(B) in the absence of a request for a peer 
                review or a new appraisal under subsection (c), 
                the date that is 2 years after the date on 
                which the Forest Service promulgates 
                regulations and policies and develops appraisal 
                guidelines under this title.
    [(c) Request for New Appraisal Under New Law.--
          [(1) In general.--Not later than 2 years after the 
        promulgation of final regulations and policies and the 
        development of appraisal guidelines in accordance with 
        section 606(a)(5), cabin owners that are subject to 
        appraisals completed after September 30, 1995, but 
        before the date of promulgation of final regulations 
        under section 613, may request, in accordance with 
        paragraph (2), that the Secretary--
                  [(A) conduct a new appraisal and determine a 
                new base cabin user fee in accordance with this 
                title; or
                  [(B) commission a peer review of the existing 
                appraisals in accordance with paragraph (4).
          [(2) Appraisal groupings by typical lot.--A request 
        for a new appraisal or for a peer review of existing 
        appraisals under paragraph (1) shall be made by a 
        majority of the cabin owners in a group of cabins 
        represented in the appraisal process by a typical lot.
          [(3) Conduct of new appraisal.--On receipt of a 
        request for an appraisal and fee determination in 
        accordance with paragraph (2), the Secretary shall 
        conduct the new appraisal and fee determination in 
        accordance with this title.
          [(4) Peer review of existing appraisals.--
                  [(A) In general.--On receipt of a request for 
                peer review in accordance with paragraph (2), 
                the Secretary shall obtain from an independent 
                professional appraisal organization a review of 
                the appraisal (including any report on the 
                appraisal) that was used to establish the 
                estimated fee simple value of the lots within 
                the subject grouping.
                  [(B) Inconsistency.--If peer review described 
                in subparagraph (A) results in a determination 
                that an appraisal or appraisal report includes 
                provisions or procedures that were implemented 
                or conducted in a manner inconsistent with this 
                title, the Secretary shall, as appropriate and 
                in accordance with this title--
                          [(i) revise an existing base cabin 
                        user fee; or
                          [(ii) subject to an agreement with 
                        the cabin owners, conduct a new 
                        appraisal and fee determination.
          [(5) Payment of costs.--Cabin owners and the 
        Secretary shall share, in equal proportion, the payment 
        of all reasonable costs of any new appraisal or peer 
        review.
    [(d) Assumption of New Base Cabin User Fee.--In the absence 
of a request under subsection (c) for a new appraisal and fee 
determination from a cabin owner whose cabin user fee was 
determined as a result of an appraisal conducted after 
September 30, 1995, but before the date of promulgation of 
final regulations under section 613, the Secretary may consider 
the base cabin user fee resulting from the appraisal conducted 
between September 30, 1995 and the date of promulgation of the 
final regulations under section 613 to be the base cabin user 
fee that complies with this section.]