[House Report 109-117]
[From the U.S. Government Publishing Office]
109th Congress Rept. 109-117
HOUSE OF REPRESENTATIVES
1st Session Part 1
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SECURE RURAL SCHOOLS AND COMMUNITY SELF-DETERMINATION REAUTHORIZATION
ACT OF 2005
_______
June 9, 2005.--Ordered to be printed
_______
Mr. Pombo, from the Committee on Resources, submitted the following
R E P O R T
[To accompany H.R. 517]
[Including cost estimate of the Congressional Budget Office]
The Committee on Resources, to whom was referred the bill
(H.R. 517) to reauthorize the Secure Rural Schools and
Community Self-Determination Act of 2000, and for other
purposes, having considered the same, report favorably thereon
without amendment and recommend that the bill do pass.
Purpose of the Bill
The purpose of H.R. 517 is to reauthorize the Secure Rural
Schools and Community Self-Determination Act of 2000, and for
other purposes.
Background and Need for Legislation
During the 1990s, federal payments to states, local
governments, and schools, which are mandated through several
laws, were being severely affected by reductions in receipts
collected from the sale of timber from national forests and
certain Bureau of Land Management lands. These receipts, as
well as the economies supported by the harvest of timber, were
critical to rural education, transportation, and local
economies. Payments to many counties and schools from receipt
collections under the Twenty-five Percent Fund Act of 1908 (16
U.S.C. 500), declined by an average of 70% from 1986 through
1998.
In 2000, Congress passed the Secure Rural Schools and
Community Self Determination Act, Public Law 106-393. The Act
restored historical payment levels made to states and counties
from the federal government for road and school purposes. The
Act benefits more than 700 counties in 39 states. Under certain
conditions, it provides for the creation of citizen advisory
committees, public lands projects, and county projects that
meet specific criteria. The Secure Rural Schools and Community
Self Determination Act provided for a six-year period to test
new concepts for allocating funds, and for participation by
citizens who have a vested interest in management of the public
lands. However, the Act expires in 2006 and needs
reauthorization.
FEDERAL COMMITMENT TO RURAL COMMUNITIES
It has been the intent and policy of the federal government
to hold rural communities harmless for the creation of federal
lands. In 1906 the Committee on Public Lands recognized that
the presence of federal lands could create a hardship for many
counties as they provided little revenue or commerce at that
time. Therefore, in 1908 Congress created the Twenty-five
Percent Fund Act to pay states and counties 25% of receipts
collected from national forests. Payments were required to be
spent on schools and roads. It was recognized that viable
communities adjacent to the public lands, with adequate roads
and schools, were essential to the development and preservation
of these national treasures. The federal policy of holding
counties harmless for the creation of adjacent public lands was
reiterated in 1916 with the creation of the Oregon and
California Grant Lands under the Chamberlain-Ferris Act, and
again in 1937 with passage of the Oregon and California Grant
Lands Act.
THE SECURE RURAL SCHOOLS ACT'S RELATION TO PILT
The relationship between the Secure Rural Schools Act and
the Payments in Lieu of Taxes (PILT) law is such that payments
made to a county in a previous year under the Secure Rural
Schools Act can reduce the payment made to that same county
under PILT (though the reduction in PILT is usually
significantly less than the increase from the Secure Rural
Schools Act). Therefore, a county that received significant
increases under the Secure Rural Schools Act would likely
experience a decrease in their PILT payments the following
year. This results in more of the annual PILT appropriation to
be available to counties that did not receive payments under
the Secure Rural Schools Act. Those counties would have
experienced an increase of approximately 9% in their PILT
payments. Counties in the Interior West have historically
received about 62% of all PILT payments. Counties in the East
have received the second highest percentage of PILT payments,
about 17%.
Committee Action
H.R. 517 was introduced on February 2, 2005, by Congressman
Greg Walden (R-OR). The bill was referred to the Committee on
Resources, and within the Committee to the Subcommittee on
Forests and Forest Health. The bill was also referred to the
Committee on Agriculture. On May 11, 2005, the Subcommittee
held a hearing on the bill. On May 18, 2005, the Full Resources
Committee met to consider the bill. The Subcommittee was
discharged from further consideration of the bill by unanimous
consent. No amendments were offered and the bill was ordered
favorably reported to the House of Representatives by unanimous
consent.
Section-by-Section Analysis
Section 1. Short title.
The Act may be cited as the ``Secure Rural Schools and
Community Self-Determination Reauthorization Act of 2005.''
Section 2. Reauthorization of Secure Rural Schools and Community Self-
Determination Act of 2000
The section extends the Secure Rural Schools and Community
Self-Determination Act through fiscal year 2013. It
reauthorizes the resumption of receipts of 25 or 50 percent
payments. The section also clarifies the source of payments to
ensure full payments are made to eligible counties and states.
The section extends the term for Resource Advisory Committee
Members, and amends the contract pilot project by making it
discretionary. Finally, it adds notification and reporting
requirements for county projects authorized under Title III of
Public Law 106-393.
Committee Oversight Findings and Recommendations
Regarding clause 2(b)(1) of rule X and clause 3(c)(1) of
rule XIII of the Rules of the House of Representatives, the
Committee on Resources' oversight findings and recommendations
are reflected in the body of this report.
Federal Advisory Committee Statement
The bill amends sections of the Secure Rural Schools Act
regarding existing Resource Advisory Committees.
Constitutional Authority Statement
Article I, section 8 of the Constitution of the United
States grants Congress the authority to enact this bill.
Compliance With House Rule XIII
1. Cost of Legislation. Clause 3(d)(2) of rule XIII of the
Rules of the House of Representatives requires an estimate and
a comparison by the Committee of the costs which would be
incurred in carrying out this bill. However, clause 3(d)(3)(B)
of that rule provides that this requirement does not apply when
the Committee has included in its report a timely submitted
cost estimate of the bill prepared by the Director of the
Congressional Budget Office under section 402 of the
Congressional Budget Act of 1974.
2. Congressional Budget Act. As required by clause 3(c)(2)
of rule XIII of the Rules of the House of Representatives and
section 308(a) of the Congressional Budget Act of 1974, this
bill does not contain any new budget authority, credit
authority, or an increase or decrease in revenues or tax
expenditures. According to the Congressional Budget Office,
enactment of the bill will result in increased direct spending.
3. General Performance Goals and Objectives. As required by
clause 3(c)(4) of rule XIII, the general performance goal or
objective of this bill is to reauthorize the Secure Rural
Schools and Community Self-Determination Act of 2000, and for
other purposes.
4. Congressional Budget Office Cost Estimate. Under clause
3(c)(3) of rule XIII of the Rules of the House of
Representatives and section 403 of the Congressional Budget Act
of 1974, the Committee has received the following cost estimate
for this bill from the Director of the Congressional Budget
Office:
H.R. 517--Secure Rural Schools and Community Self-Determination
Reauthorization Act of 2005
Summary: Under the Secure Rural Schools and Community Self-
Determination Act, the federal government makes payments to
states and counties that received a portion of the receipts
from the sale of resources, particularly timber, on certain
federal lands during fiscal years 1986 through 1999 . Under
current law, the government's authority to make those payments
will expire after fiscal year 2007. H.R. 517 would extend that
authority for an additional seven years.
CBO estimates that enacting H.R. 517 would increase direct
spending by $3.2 billion over the 2008-2014 period. The bill
would not affect revenues. H.R. 517 contains no
intergovernmental or private-sector mandates as defined in the
Unfunded Mandates Reform Act (UMRA) and would impose no costs
on state, local, or tribal governments.
Estimated Cost to the Federal Government: The estimated
budgetary impact of H.R. 517 is shown in the following table.
The costs of this legislation fall within budget functions 800
(general government) and 300 (natural resources and
environment).
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By fiscal year, in millions of dollars--
---------------------------------------------------------------------
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
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DIRECT SPENDING
Spending Under Current Law:\(1)\
Estimated Budget Authority............ 520 526 90 85 88 89 92 94 97 98
Estimated Outlays..................... 520 526 90 85 88 89 92 94 97 98
Proposed Changes:
Estimated Budget Authority............ 0 0 443 454 458 464 468 473 477 0
Estimated Outlays..................... 0 0 443 454 458 464 468 473 477 0
Spending Under H.R. 517:
Estimated Budget Authority............ 520 526 533 539 546 553 560 567 574 98
Estimated Outlays..................... 520 526 533 539 546 553 560 567 574 98
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\1\k The amounts shown for spending under current law include estimated payments to states and counties under
the Secure Rural Schools and Community Self-Determination Act's existing activity through 2007, as well as
additional receipt-sharing payments for the sale of resources on federal land.
Basis of estimate: Offsetting receipts generated from the
sale of resources on federal land are shared with states and
counties based on formulas specific to the type of resources
and land involved. H.R. 517 would affect payments to states and
counties to share receipts from three types of federal land
managed by the Forest Service or Bureau of Land Management:
National Forest System (NFS) lands, Oregon and California
Railroad grant lands, and Coos Bay Wagon Road (CBWR) grant
lands.
Eligible states and counties receive 25 percent of the
receipts from the sale of resources on NFS land and 50 percent
of receipts generated from Oregon and California grant lands
and CBWR grant lands. Under the Secure Rural Schools and
Community Self-Determination Act, however, a different payment
process is in effect for certain counties. Under that act,
instead of receiving payments based on current levels of
receipts, eligible counties can choose to have payments based
on historical levels over the 1986-1999 period.
Under current law, the federal government's authority to
make payments based on historical levels of receipts will
expire after fiscal year 2007. H.R. 517 would extend that
authority for an additional seven years. Based on recent
payments to affected states and counties and considering
anticipated inflation, CBO estimates that enacting H.R. 517
would increase direct spending by $3.2 billion over the 2008-
2014 period.
Intergovernmental and private-sector impact: H.R. 517
contains no intergovernmental or private-sector mandates as
defined in UMRA and would impose no costs on state, local, or
tribal governments. Enacting this bill would benefit the states
and counties that would receive the authorized payments. Any
additional costs incurred by those counties to comply with the
bill's new reporting requirements would be incurred
voluntarily.
Estimate prepared by: Federal Costs: Megan Carroll. Impact
on State, Local, and Tribal Governments: Marjorie Miller.
Impact on the Private Sector: Craig Cammarata.
Estimate approved by: Peter H. Fontaine, Deputy Assistant
Director for Budget Analysis.
Compliance With Public Law 104-4
This bill contains no unfunded mandates.
Preemption of State, Local or Tribal Law
This bill is not intended to preempt any State, local or
tribal law.
Changes in Existing Law Made by the Bill, as Reported
In compliance with clause 3(e) of rule XIII of the Rules of
the House of Representatives, changes in existing law made by
the bill, as reported, are shown as follows (existing law
proposed to be omitted is enclosed in black brackets, new
matter is printed in italic, existing law in which no change is
proposed is shown in roman):
SECURE RURAL SCHOOLS AND COMMUNITY SELF-DETERMINATION ACT OF 2000
* * * * * * *
SEC. 101. DETERMINATION OF FULL PAYMENT AMOUNT FOR ELIGIBLE STATES AND
COUNTIES.
(a) Calculation Required.--
(1) Eligible states.--For fiscal years 2001 through
[2006] 2013, the Secretary of the Treasury shall
calculate for each eligible State that received a 25-
percent payment during the eligibility period an amount
equal to the average of the three highest 25-percent
payments and safety net payments made to that eligible
State for the fiscal years of the eligibility period.
(2) Bureau of land management counties.--For fiscal
years 2001 through [2006] 2013, the Secretary of the
Treasury shall calculate for each eligible county that
received a 50-percent payment during the eligibility
period an amount equal to the average of the three
highest 50-percent payments and safety net payments
made to that eligible county for the fiscal years of
the eligibility period.
* * * * * * *
SEC. 102. PAYMENTS TO STATES FROM NATIONAL FOREST SYSTEM LANDS FOR USE
BY COUNTIES TO BENEFIT PUBLIC EDUCATION AND
TRANSPORTATION.
(a) * * *
(b) Election To Receive Payment Amount.--
(1) Election; submission of results.--The election to
receive either the full payment amount or the 25-
percent payment shall be made at the discretion of each
affected county and transmitted to the Secretary of the
Treasury by the Governor of a State.
(2) Duration of election.--A county election to
receive the 25-percent payment, including such an
election made during the last quarter of fiscal year
2006 under this paragraph, shall be effective for two
fiscal years. When a county elects to receive the full
payment amount, such election shall be effective for
all the subsequent fiscal years through [fiscal year
2006] fiscal year 2013, except that the Secretary of
the Treasury shall give the county the opportunity to
elect, in writing during the last quarter of fiscal
year 2006, to begin receiving the 25-percent payment
effective with the payment for fiscal year 2007.
(3) Source of payment amounts.--The payment to an
eligible State under this section for a fiscal year
shall be derived from any revenues, fees, penalties, or
miscellaneous receipts, exclusive of deposits to any
relevant [trust fund,] trust funds, permanent funds, or
special accounts, received by the Federal Government
from activities by the Forest Service on the Federal
lands described in section 3(1)(A) and, to the extent
of any shortfall, out of any funds in the Treasury not
otherwise appropriated. If the Secretary of the
Treasury determines that a shortfall is likely for a
fiscal year, all revenues, fees, penalties, and
miscellaneous receipts referred to in the preceding
sentence, exclusive of required deposits to relevant
trust funds, permanent funds, and special accounts,
that are received during that fiscal year shall be
reserved to make payments under this section for that
fiscal year.
* * * * * * *
SEC. 103. PAYMENTS TO COUNTIES FROM BUREAU OF LAND MANAGEMENT LANDS FOR
USE TO BENEFIT PUBLIC SAFETY, LAW ENFORCEMENT,
EDUCATION, AND OTHER PUBLIC PURPOSES.
(a) * * *
(b) Election To Receive Full Payment Amount.--
(1) Election; duration.--The election to receive the
full payment amount shall be made at the discretion of
the county. Once the election is made, it shall be
effective for the fiscal year in which the election is
made and all subsequent fiscal years through [fiscal
year 2006] fiscal year 2013, except that the Secretary
of the Treasury shall give the county the opportunity
to elect, in writing during the last quarter of fiscal
year 2006, to begin receiving the 50-percent payment
effective with the payment for fiscal year 2007.
(2) Source of payment amounts.--The payment to an
eligible county under this section for a fiscal year
shall be derived from any revenues, fees, penalties, or
miscellaneous receipts, exclusive of deposits to any
relevant trust [fund,] funds or permanent operating
funds, received by the Federal Government from
activities by the Bureau of Land Management on the
Federal lands described in section 3(1)(B) and, to the
extent of any shortfall, out of any funds in the
Treasury not otherwise appropriated. If the Secretary
of the Treasury determines that a shortfall is likely
for a fiscal year, all revenues, fees, penalties, and
miscellaneous receipts referred to in the preceding
sentence, exclusive of required deposits to relevant
trust funds and permanent operating funds, that are
received during that fiscal year shall be reserved to
make payments under this section for that fiscal year.
* * * * * * *
TITLE II--SPECIAL PROJECTS ON FEDERAL LANDS
* * * * * * *
SEC. 203. SUBMISSION OF PROJECT PROPOSALS.
(a) Submission of Project Proposals to Secretary Concerned.--
(1) Projects funded using project funds.--Not later
than September 30 for fiscal year 2001, and each
September 30 thereafter for each succeeding fiscal year
through fiscal year [2006] 2013, each resource advisory
committee shall submit to the Secretary concerned a
description of any projects that the resource advisory
committee proposes the Secretary undertake using any
project funds reserved by eligible counties in the area
in which the resource advisory committee has geographic
jurisdiction.
* * * * * * *
SEC. 204. EVALUATION AND APPROVAL OF PROJECTS BY SECRETARY CONCERNED.
(a) * * *
* * * * * * *
(e) Implementation of Approved Projects.--
(1) * * *
* * * * * * *
(3) Merchantable material contracting pilot
program.--
(A) Establishment.--[The Secretary concerned
shall establish a pilot program to implement a
certain percentage of approved projects] At the
request of a resource advisory committee, the
Secretary concerned may establish a pilot
program to implement one or more of the
projects proposed by the resource advisory
committee under section 203 involving the sale
of merchantable material using separate
contracts for--
(i) * * *
* * * * * * *
[(B) Annual percentages.--Under the pilot
program, the Secretary concerned shall ensure
that, on a nationwide basis, not less than the
following percentage of all approved projects
involving the sale of merchantable material are
implemented using separate contracts:
[(i) For fiscal year 2001, 15
percent.
[(ii) For fiscal year 2002, 25
percent.
[(iii) For fiscal year 2003, 25
percent.
[(iv) For fiscal year 2004, 50
percent.
[(v) For fiscal year 2005, 50
percent.
[(vi) For fiscal year 2006, 50
percent.]
[(C)] (B) Inclusion in pilot program.--The
decision whether to use separate contracts to
implement a project involving the sale of
merchantable material shall be made [by the
Secretary concerned] after the approval of the
project under this title.
[(D)] (C) Assistance.--The Secretary
concerned may use funds from any appropriated
account available to the Secretary for the
Federal lands to assist in the administration
of projects conducted under [the pilot program]
pilot programs established under subparagraph
(A). The total amount obligated under this
subparagraph may not exceed $1,000,000 for any
fiscal year during which [the pilot program is]
pilot programs are in effect.
[(E)] (D) Review and report.--Not later than
September 30, 2003, the Comptroller General
shall submit to the Committee on Agriculture,
Nutrition, and Forestry of the Senate, the
Committee on Energy and Natural Resources of
the Senate, the Committee on Agriculture of the
House of Representatives, and the Committee on
Resources of the House of Representatives a
report assessing the pilot program. The
Secretary concerned shall submit to such
committees an annual report describing the
results of the pilot program.
* * * * * * *
SEC. 205. RESOURCE ADVISORY COMMITTEES.
(a) Establishment and Purpose of Resource Advisory
Committees.--
(1) * * *
* * * * * * *
(3) Access to resource advisory committees.--To
ensure that each unit of Federal land has access to a
resource advisory committee, and that there is
sufficient interest in participation on a committee to
ensure that membership can be balanced in terms of the
points of view represented and the functions to be
performed, the Secretary concerned may[,] establish
resource advisory committees for part of, or one or
more, units of Federal lands.
* * * * * * *
(c) Appointment by the Secretary.--
(1) Appointment and term.--The Secretary concerned,
shall appoint the members of resource advisory
committees for a term of 3 years beginning on the date
of appointment. [The Secretary concerned may reappoint
members to] A member of a resource advisory committee
may be reappointed for one or more subsequent 3-year
terms. Section 1803(c) of Food and Agriculture Act of
1977 (7 U.S.C. 2283(c)) shall not apply to a resource
advisory committee established by the Secretary of
Agriculture.
* * * * * * *
SEC. 207. AVAILABILITY OF PROJECT FUNDS.
(a) Submission of Proposed Projects To Obligate Funds.--By
September 30 of each fiscal year through fiscal year [2006]
2013, a resource advisory committee shall submit to the
Secretary concerned pursuant to section 203(a)(1) a sufficient
number of project proposals that, if approved, would result in
the obligation of at least the full amount of the project funds
reserved by the participating county in the preceding fiscal
year.
* * * * * * *
SEC. 208. TERMINATION OF AUTHORITY.
The authority to initiate projects under this title shall
terminate on September 30, [2006] 2013. Any project funds not
obligated by September 30, [2007] 2014, shall be deposited in
the Treasury of the United States.
TITLE III--COUNTY PROJECTS
SEC. 301. DEFINITIONS.
In this title:
(1) * * *
* * * * * * *
(3) Secretary concerned.--The term ``Secretary
concerned'' means--
(A) the Secretary of Agriculture or the
designee of the Secretary of Agriculture, with
respect to county funds reserved under section
102(d)(1)(B)(ii) for expenditure in accordance
with this title;
(B) the Secretary of the Interior or the
designee of the Secretary of the Interior, with
respect to county funds reserved under section
103(c)(1)(B)(ii) for expenditure in accordance
with this title.
SEC. 302. USE OF COUNTY FUNDS.
(a) * * *
(b) Authorized Uses.--
(1) Search, rescue, and emergency services.--[An
eligible county] A participating county or applicable
sheriff's department may use these funds as
reimbursement for search and rescue and other emergency
services, including fire fighting, performed on Federal
lands and paid for by the county.
(2) Community service work camps.--[An eligible
county] A participating county may use these funds as
reimbursement for all or part of the costs incurred by
the county to pay the salaries and benefits of county
employees who supervise adults or juveniles performing
mandatory community service on Federal lands.
(3) Easement purchases.--[An eligible county] A
participating county may use these funds to acquire--
(A) * * *
* * * * * * *
(4) Forest related educational opportunities.--[A
county] A participating county may use these funds to
establish and conduct forest-related after school
programs.
(5) Fire prevention and county planning.--A [county]
A participating county may use these funds for--
(A) * * *
* * * * * * *
(6) Community forestry.--A [county] A participating
county may use these funds towards non-Federal cost-
share requirements of section 9 of the Cooperative
Forestry Assistance Act of 1978 (16 U.S.C. 2105).
(c) Notification and Reporting Requirements.--
(1) Notification.--Not later than 90 days after the
end of each fiscal year during which county funds are
obligated for projects under this title, the
participating county shall submit to the Secretary
concerned written notification specifying--
(A) each project for which the participating
county obligated county funds during that
fiscal year;
(B) the authorized use specified in
subsection (b) that the project satisfies; and
(C) the amount of county funds obligated or
expended under the project during that fiscal
year, including expenditures on Federal lands,
State lands, and private lands.
(2) Review.--The Secretary concerned shall review the
notifications submitted under paragraph (1) for a
fiscal year for the purpose of assessing the success of
participating counties in achieving the purposes of
this title.
(3) Annual report.--The Secretary concerned shall
prepare an annual report containing the results of the
most-recent review conducted under paragraph (2) and a
summary of the notifications covered by the review.
(4) Submission of report.--The report required by
paragraph (3) for a fiscal year shall be submitted to
the Committee on Agriculture, Nutrition, and Forestry
and the Committee on Energy and Natural Resources of
the Senate and the Committee on Agriculture and the
Committee on Resources of the House of Representatives
not later than 150 days after the end of that fiscal
year.
SEC. 303. TERMINATION OF AUTHORITY.
The authority to initiate projects under this title shall
terminate on September 30, [2006] 2013. Any county funds not
obligated by September 30, [2007] 2014, shall be available to
be expended by the county for the uses identified in section
302(b).
TITLE IV--MISCELLANEOUS PROVISIONS
SEC. 401. AUTHORIZATION OF APPROPRIATIONS.
There are hereby authorized to be appropriated such sums as
may be necessary to carry out this Act for fiscal years 2001
through [2006] 2013.
* * * * * * *