Advertising and Sponsorship in Connection With Concessions Involving Privately Owned Improvements on National Forest System Lands, 27941-27949 [2013-11299]

Agencies

• DEPARTMENT OF AGRICULTURE
• Forest Service

[Federal Register Volume 78, Number 92 (Monday, May 13, 2013)]
[Notices]
[Pages 27941-27949]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2013-11299]


-----------------------------------------------------------------------

DEPARTMENT OF AGRICULTURE

Forest Service

RIN 0596-AC41


Advertising and Sponsorship in Connection With Concessions 
Involving Privately Owned Improvements on National Forest System Lands

AGENCY: Forest Service, USDA.

ACTION: Notice of issuance of final directive; response to public 
comment.

-----------------------------------------------------------------------

SUMMARY: The Forest Service is amending its internal directives for 
concessions with privately owned improvements that operate under 
special use permit on National Forest System (NFS) lands. Subject to 
certain conditions, the final directive allows holders of concession 
permits to advertise (1) inside buildings and other interior spaces 
they own; (2) on chairlift restraining bars in conjunction with trail 
map displays; (3) at designated ski/snowboard racing sites; and (4) at 
venues for short-term competitive events. In addition, the final 
directive

[[Page 27942]]

allows concessioners to advertise the services and accommodations they 
offer at the concession site. The final directive also encourages 
third-party sponsorships of events, projects, and programs to assist 
the Agency in promoting public participation in or awareness of 
management of NFS lands. The revised direction promotes consistency in 
the special uses program by clarifying where advertising is permitted 
or prohibited and by describing how sponsorships may be utilized and 
how sponsors may be recognized. The final directive also adds several 
definitions to FSM 2340 to aid in understanding terms used in this 
directive.

DATES: This directive is effective May 13, 2013.

ADDRESSES: The record for this final directive is available for 
inspection and copying at the office of the Director, Recreation, 
Heritage, and Volunteer Resources Staff, USDA, Forest Service, 4th 
Floor Central, Sidney R. Yates Federal Building, 1400 Independence 
Avenue SW., Washington, DC, from 8:30 a.m. to 4:00 p.m., Monday through 
Friday, except holidays. Those wishing to inspect these documents are 
encouraged to call ahead at (202) 205-9530 to facilitate access to the 
building.

FOR FURTHER INFORMATION CONTACT: Corey Wong, Recreation, Heritage, and 
Volunteer Resources Staff, (970) 874-6668.

SUPPLEMENTARY INFORMATION:

1. Background and Need for the Final Directives

Background

    The Forest Service authorizes and regulates the provision of 
concession recreation services to the public through private 
individuals and entities that own and operate recreational facilities 
and provide services on NFS lands. These facilities and services are 
authorized by special use permits and are intended to enhance 
opportunities for the public to recreate on NFS lands. Concessioners 
often provide the primary and sometimes the only experience on NFS 
lands for many members of the public. Many people visit concessions on 
NFS lands each year. For example, approximately one-half of the 60 
million annual skier and snowboarder visits in the United States occur 
at ski areas that operate under a Forest Service special use permit. 
Thus, concessioners such as resort, marina, and ski area operators 
greatly assist the Forest Service in providing outdoor recreation 
opportunities in developed settings.
    Concession special use permits are issued to provide for particular 
types of public recreation opportunities. While the Agency recognizes 
that a permit holder must charge fees to cover the cost of these 
facilities and services and to provide a return on the holder's 
financial investment, these authorizations are not issued simply to 
generate revenue. A primary objective in the NFS recreation program is 
to ``provide nonurbanized outdoor recreation opportunities in natural 
appearing forest and rangeland settings'' (FSM 2302). At concession 
sites, the Agency is required to manage for ``a diversity of recreation 
activities that emphasize the forest setting and rustic, natural 
resource-based recreation opportunities'' (FSM 2343.02). Under these 
policies, the Forest Service has a responsibility at concession sites 
to limit the types of development and posted displays and information 
to protect the natural setting.
    Prior to 2005, Forest Service directives prohibited all outdoor 
advertising, except for posting of available services and 
accommodations inside buildings (FSM 2343.03, para. 11). Since 2005, 
the Forest Service has authorized limited outdoor advertising under an 
interim directive issued on November 25, 2005. The interim directive 
recognizes that it may not be economical for a concessioner to conduct 
some types of activities or provide some facilities without the 
financial support of third parties. In addition, the interim directive 
recognizes that sponsorship of events, projects, and programs can 
promote public participation in and awareness of management of NFS 
lands if these activities evaluate solutions to specific natural 
resource management problems, increase conservation awareness, or 
promote public health or safety.

Need for the Final Directive

    The final directive provides long-term direction to field employees 
on advertising and sponsorship at concession sites and reflects current 
trends at concession sites. At many of these sites, such as ski areas, 
the nature of the setting and the activities offered have become more 
developed in recent years. In addition, some activities, such as 
national and international ski and snowboard racing, including Olympic 
events, would not be possible if advertising were not allowed. 
Financial support for certain facilities and activities from third 
parties such as the National Standard Race Program is critical and 
probably would not be feasible if the supporting entities were not 
provided some sort of promotional opportunity. The final directive 
keeps pace with these changes while ensuring that concession sites 
remain a place for natural resource-based recreation, where visitors 
can expect to find refuge from extensive advertising and other urban 
pressures. The revisions to the provisions on sponsorship provide for a 
more consistent approach nationally and more clearly distinguish 
sponsorship from advertising.

2. Public Comments on the Interim Directive and Agency Responses

    On November 25, 2005, the Forest Service published notice in the 
Federal Register (70 FR 71081) of and requested public comment on an 
interim directive governing advertising at concession sites with 
privately owned improvements. The interim directive allowed holders of 
concession permits to advertise inside buildings and other interior 
spaces that they own. In addition, the interim directive introduced 
sponsorship as a means of promoting public participation in and 
awareness of management of NFS lands through events, projects, and 
programs that provide for evaluation of solutions to specific natural 
resource management problems, increase conservation awareness, or 
promote public health or safety.
    The notice of the interim directive was posted electronically on 
the Federal Register Web site, www.gpoaccess.gov, and on the FirstGov 
e-rulemaking site, www.regulations.gov. The Agency posted the notice 
and the interim directive on its special uses Web site, www.fs.fed.us/
recreation/permits. The notice provided for a 120-day public comment 
period ending March 27, 2006. The Forest Service received 190 comments 
on the interim directive. Each respondent was grouped in one of the 
following categories:


------------------------------------------------------------------------
 
------------------------------------------------------------------------
Business................................................               9
Commercial Recreation Permit Holder or Association......               3
Individual..............................................             172
Environmental Organization..............................               5
Recreation Organization.................................               1
------------------------------------------------------------------------


    The 190 respondents represented 16 States and the District of 
Columbia. Most comments were short statements of one paragraph or less 
provided via email. Fewer than 20 of the comments were identical.
    Many respondents offered general comments supporting or opposing 
the interim directive, while others offered comments on specific 
sections of the interim directive. Most respondents stated that NFS and 
other Federal lands should be a refuge from the constant

[[Page 27943]]

barrage of commercialism in their daily lives and that advertising 
detracts from the natural environment they seek when visiting the NFS. 
These respondents generally objected to any change in the Agency's pre-
2005 policy on advertising.
    Many respondents objected to the designation of the side of a 
restraining bar facing the rider on a chairlift as an indoor space 
owned by the permit holder and therefore eligible for placement of 
advertising. Several respondents stated that the advertisements on a 
chairlift restraining bar did not diminish their experience and were 
helpful.
    Other respondents provided specific comments about other agency 
policy-making efforts or existing Forest Service direction in other 
areas, which are beyond the scope of the interim directive.
    Untimely comments were not considered.

General Comments and Responses

    Comment. Several respondents observed that the Forest Service 
provided no information supporting the public need to revise the policy 
on advertising. One respondent stated that there is no historical 
precedent that supports advertising as a legitimate use of Federal 
lands.
    Response. The Agency believes that in general outdoor advertising 
on NFS lands at concession sites is not appropriate. The Forest Service 
has not identified outdoor advertising generally as a needed public 
service. However, there are limited situations where advertising at 
concession sites on NFS lands provides a useful public service that 
would not otherwise be available. Further clarification and clear 
limitations on advertising opportunities are important aspects of the 
revised policy. Specifically, the final directive (1) more clearly 
defines what constitutes an indoor space where advertising is allowed 
and specifies applicable restrictions, including those governing 
advertising on chairlift restraining bars; (2) clarifies that permit 
holders may advertise their own accommodations and services; (3) 
indicates that printed materials distributed at concession sites, such 
as trail map brochures, are not subject to advertising restrictions; 
(4) provides for limited advertising opportunities at short-term 
competitive events, such as ski races; and (5) includes provisions for 
limited advertising at designated competitive courses that are used 
throughout an operating season.
    In terms of sponsorships, the Forest Service sees a public need to 
promote public interest and participation in management of NFS lands. 
The Agency believes this objective is met by sponsorship of events, 
projects, and programs that provide for evaluation of solutions to 
specific natural resource management problems, increase conservation 
awareness, or promote public health or safety. Without sponsorship 
opportunities, these endeavors might not provide a return on investment 
for concessioners and therefore most likely would not be undertaken.
    Comment. Several respondents were concerned that implementation of 
the interim directive will lead to incremental proliferation of 
advertising at concession sites due to pressure from permit holders and 
advertisers on authorized officers.
    Response. The Forest Service believes that the final directive 
provides sufficient controls on advertising to prevent the incremental 
proliferation of advertising at concession sites.
    Comment. Several respondents expressed a concern that the revenues 
generated from advertising at concession sites will result in a 
reduction in public support for Forest Service appropriations from tax 
revenues, as well as a reduction in the public's sense of ownership of 
NFS lands.
    Response. Most advertising revenues will not accrue to the Forest 
Service. Rather, they will accrue to permit holders. The Forest Service 
will obtain only a percentage of advertising revenue as part of the 
land use fee for concessions. Therefore, implementation of the final 
directive will have minimal effect on public support for Forest Service 
appropriations or the public's sense of ownership of NFS lands.
    Comment. One respondent voiced opposition to concessioners 
operating on NFS lands.
    Response. Whether concessions are an appropriate use of NFS lands 
is outside the scope of the interim directive and therefore was not 
considered in formulation of the final directive.
    Comment. Many respondents expressed opposition to the interim 
directive because they believed it will result in commercialization of 
NFS lands, promote corporate branding, and generate profits for 
resorts.
    Response. The Agency believes the final directive includes 
sufficient restrictions to protect the National Forest setting. The 
Forest Service understands that both permit holders and third parties 
are motivated by a variety of factors, including financial 
considerations. Most concession permit holders are for-profit 
businesses.
    Comment. One respondent stated that the interim directive will 
allow posting of religious messages.
    Response. The final directive defines advertising as ``the act of 
calling public attention to a product or business'' and therefore does 
not apply to the posting of religious information.
    Comment. One respondent stated that the interim directive provides 
no assurance that any of the revenues generated will be devoted to a 
public purpose that enhances the recreation experience. This respondent 
also noted that in implementing the interim directive, the Forest 
Service will be conveying valuable property rights of the United States 
to concessioners without receiving compensation.
    Response. The advertising revenues a permit holder generates are 
subject to land use fees that are returned to the U.S. Treasury. The 
Forest Service believes that the changes made to the interim directive 
will help ensure that sponsorship funding will be focused on promoting 
public awareness of and engagement in management of NFS lands. 
Enhancement of the recreation experience is not an objective of the 
sponsorship program, although it could be a secondary result in some 
cases. Sponsorship and advertising provided for in the final directive 
do not convey a property interest to permit holders.
    Comment. Some respondents supported the interim directive and 
stated that it will provide more clarity and consistency for 
concessioners.
    Response. The Forest Service believes that the changes contained in 
the final directive are important to help reduce confusion and promote 
consistent application.
    Comment. One respondent stated that sponsorships were needed for 
some concessions to underwrite services and amenities provided to the 
public.
    Response. This comment confuses advertising and sponsorship. 
Sponsorship is not intended as a means for the holder to cover 
operating expenses or finance new recreational facilities. The final 
directive includes more explicit language on this point and reiterates 
that to qualify for sponsorship, events, projects, and programs must 
provide for evaluation of solutions to specific natural resource 
management problems, increase conservation awareness, or promote public 
health or safety.
    Comment. One respondent stated that the interim directive was too 
restrictive with respect to the types of commercial information that 
may be posted in the base area of ski resorts. This respondent noted 
that the base area is already developed and that posting some

[[Page 27944]]

commercial information at that location beyond what the interim 
directive allows would not detract from the outdoor experience.
    Response. The Forest Service agrees that the base area of ski 
resorts, especially those with intermingled private and Federal land 
ownership, often has a more developed appearance. However, the Agency 
does not believe it would be appropriate or practical for the amount of 
commercial information allowable to be based on the level of 
development.
    Comment. Some respondents expressed a concern about the need to 
analyze adverse effects from the interim directive on scenic quality, 
open space, and the Forest Service's mission and core values.
    Response. With respect to advertising, the Agency does not believe 
that the final directive will have adverse effects on scenic quality, 
open space, or the Forest Service's mission and core values because 
advertising will be confined to indoor spaces; chairlift restraining 
bars, provided certain conditions are met; holder services, provided 
certain conditions are met; printed materials and other media produced 
outside the permit area and distributed inside the permit area, 
provided they are not posted in outdoor settings inside the permit 
area; short-term competitive events; and at the start and finish points 
of designated ski and snowboard race courses and terrain parks.
    With respect to sponsorship, the Agency does not believe that the 
final directive will have adverse effects on scenic quality, open 
space, or the Forest Service's mission and core values because events, 
projects, and programs must provide for evaluation of solutions to 
specific natural resource management problems, increase conservation 
awareness, or promote public health or safety. Moreover, the final 
directive does not approve or disapprove any event, project, or 
program. Events, projects, and programs proposed for sponsorship will 
be subject to the requisite analysis under the National Environmental 
Policy Act (NEPA). Issues pertaining to scenic quality and open space 
that arise in connection with these events, projects, and programs 
could be addressed in any required environmental analysis.
    Comment. One respondent asserted that the interim directive will 
eventually affect many small entities.
    Response. The final directive will apply only to holders of 
concession permits authorizing facilities that are constructed and 
operated by the permit holder on NFS lands. These facilities primarily 
include operations such as resorts, marinas, and ski areas, some of 
which are not built and operated by small entities. The final directive 
will apply equally to all these permit holders, regardless of the size 
of the business. Moreover, the final directive enhances the financial 
position of these concessioners to the extent the final directive 
allows advertising and sponsorship, which will generate revenue for the 
concessioners. The Forest Service believes it is unlikely that there 
would be any change in the number of special uses authorized as a 
result of the final directive.
    Comment. Several respondents stated that State and local law 
regarding advertisement of alcohol and other products will be preempted 
by the interim directive.
    Response. The final directive governs the time, place, and manner 
in which advertising may take place at concessions on NFS lands. The 
final directive does not address the types of products that may be 
advertised and therefore does not preempt State and local law governing 
advertisement of specific products such as alcohol. State and local law 
regarding advertisement of alcohol and other products will still be in 
effect.
    Comment. Several respondents expressed concerns about the effect 
the interim directive will have on NFS lands outside the permit area. 
One respondent was concerned that the interim directive will lead to 
requests from businesses to allow advertising along roads and scenic 
byways.
    Response. The final directive provides for limited advertising only 
within the permit area for concessions involving privately owned 
improvements. The final directive does not allow advertising in other 
contexts on NFS lands, including along roads and scenic byways. 
Therefore, the Agency does not believe that the final directive will 
have any effect on NFS lands outside the permit area for these 
concessions, nor does the Agency believe that the final directive will 
lead to requests from businesses to allow advertising along roads and 
scenic byways.
    Comment. Several respondents stated that they believed that the 
interim directive will give companies and donors undue influence over 
Forest Service decision-makers.
    Response. Under the final directive, the business relationship for 
both advertising and sponsorship is between the advertiser or sponsor 
and the concessioner. The Agency's role is limited to ensuring that 
advertising and sponsorship meet the requirements in the final 
directive. The final directive restricts advertising to specific 
situations and more clearly defines sponsorships. In the case of 
advertising, the final directive helps meet the Agency's objectives of 
resource protection and scenery management. In the case of sponsorship, 
the final directive helps meet the Agency's objectives regarding 
natural resource management, conservation awareness, and promotion of 
public health and safety.
    Comment. A few respondents made suggestions regarding accounting 
for funds received by the Forest Service under the interim directive, 
including retaining the funds in the unit where they are collected, 
requiring advertisers to enter into an agreement with the permit holder 
for use of NFS lands, and ensuring that the United States receives 
market value fees for advertising and sponsorship revenue received by 
concessioners under the interim directive. Other respondents asked the 
Forest Service to ensure that the additional revenue generated under 
the interim directive be devoted to public programs, projects, or 
activities.
    Response. The Forest Service does not have the authority to retain 
land use fees for concession permits involving privately owned 
improvements, including the part of the fees attributable to 
advertising and sponsorship revenues. These fees will be deposited in 
the U.S. Treasury. Advertisers will enter into advertising agreements 
with holders of permits for concessions involving privately owned 
improvements. The Forest Service will not be a party to these 
agreements. A land use agreement between these parties is unnecessary, 
as the permit holder is responsible for use and occupancy of NFS lands 
for the concession, including advertising and sponsorship authorized 
under the final directive. The Forest Service collects land use fees 
based on market value for concessions involving privately owned 
improvements. To the extent authorized by law, revenues derived from 
advertising and sponsorships will be factored into calculation of these 
land use fees. The National Forest Ski Area Permit Fee Act (16 U.S.C. 
497c(f)) exempts sponsorship event revenue from the land use fee 
calculation for ski area permits. Although the Forest Service cannot 
retain and spend revenues generated from advertising and sponsorship 
under the final directive, sponsored events, projects, and programs 
promote the public interest by providing for evaluation of solutions to 
specific natural resource management problems, increasing conservation 
awareness, or promoting public health or safety.

[[Page 27945]]

Specific Comments and Responses

FSM2343.03, Paragraph 11--Advertising

    Prior to issuance of the interim directive in 2005, Forest Service 
policy prohibited all advertising at concession sites, except for signs 
on buildings that simply iterated the services and accommodations 
available inside. Forest Service policy did not address advertising 
inside buildings and other structures. Paragraph 11 of the interim 
directive addressed this issue by allowing for advertising in interior 
spaces owned by the permit holder. The interim directive included 
chairlift restraining bars at ski areas as an interior space. Paragraph 
11 also cited paragraph 12 for guidance regarding advertising for 
short-term special events.
    Confusion between advertising and sponsorship has been the most 
common obstacle to consistent implementation of the interim directive. 
To distinguish sponsorship recognition more clearly from advertising, 
the final directive defines sponsorship as ``monetary or in-kind 
support from an individual or entity for an event, project, or program 
that promotes public participation in or awareness of management of 
National Forest System lands'' (FSM 2340.5). In contrast, advertising 
is defined as ``the act of calling public attention to a product or 
business.'' Additionally, the final directive addresses this confusion 
by focusing on advertising in paragraph 11 and on sponsorship in 
paragraph 12. In addition, paragraph 11 of the final directive includes 
limited exceptions to the general advertising prohibition, some of 
which might have been approved as sponsorships under the interim 
directive.
    In response to public comments, the final directive clarifies that 
chairlift restraining bars facing passengers are not an interior space, 
but qualify as a location for placement of advertising if the 
advertising meets the conditions enumerated in the final directive. 
Specifically, based on the recognition that trail maps are helpful to 
ski area visitors, the advertising must be included in a trail map 
display and must not exceed 33 percent of the surface area of the panel 
facing passengers.
    Paragraph 11 of the final directive also includes other exceptions 
to the general advertising prohibition that might have previously been 
treated as sponsorships because of ambiguity in the interim directive. 
The final directive clarifies that concession permit holders may 
advertise their services and accommodations at their concession site 
and that printed materials and other media produced outside the permit 
area that contain advertising may be distributed at the concession 
site, provided they are not posted in outdoor settings in the permit 
area. The final directive also includes exceptions for advertising at 
short-term competitive events and for limited advertising at designated 
ski and snowboard race courses and snow sports terrain parks.
    The Forest Service recognizes that concessioners may have some 
advertisements and displays under contract with third parties that do 
not meet the requirements of the final directive. Therefore, the final 
directive provides that these advertisements and displays may remain in 
place through the term of the current contract. Finally, as in the 
interim directive, the final directive prohibits display of Forest 
Service symbols in conjunction with product or service names and 
advertisements and requires prior written approval for exterior 
signage.
    Comment. Many respondents stated that expanding opportunities for 
advertising in indoor spaces owned by permit holders would detract from 
the natural environment they expect on NFS lands. One respondent stated 
that social science research indicates that increased commercialism 
results in less enjoyment of the outdoor experience.
    Response. The interim and final directives authorize advertising 
only at concessions with privately owned improvements, such as ski 
areas, marinas, and other resorts. These concessions involve 
significant developments. Nevertheless, the Agency believes that even 
these developed settings should offer visitors some degree of refuge 
from urban and commercial influences. The restrictions in the final 
directive strike a balance between allowing advertising in some 
contexts at commercial public service sites and maintaining the natural 
integrity of these areas so that they stand apart from urban settings 
as a place for natural resource-based outdoor recreation.
    Comment. Many respondents expressed opposition to allowing 
advertising on chairlift restraining bars. These comments were often 
focused on a pilot program that was in place in Colorado where 
advertising was integrated into trail map displays. Respondents 
frequently stated that chairlift restraining bars should not be 
considered an indoor space; that riding on a chairlift was a highly 
outdoor experience; and that advertising on the restraining bar would 
detract from their enjoyment of the natural setting. Several 
respondents objected to being a captive audience to the advertising 
while on a chairlift. One respondent suggested that if a ski area 
believes that trail map displays on chairlift restraining bars add 
value to the recreation experience, the maps could be provided without 
advertising.
    Response. The Forest Service agrees that chairlift restraining bars 
should not be considered an indoor space. However, the Agency believes 
that trail map displays on chairlift restraining bars provide a useful 
public service and that recognition of third-party support in the 
limited manner authorized by the final directive will not unduly 
detract from the outdoor experience of skiers and snowboarders. The 
fact that trail map displays on chairlift restraining bars did not 
exist before advertising was allowed in conjunction with them suggests 
that permit holders would be unlikely to include the displays without 
that support.
    Comment. Some respondents were supportive of the usefulness and 
convenience of trail map displays on chairlift restraining bars. A few 
of these respondents thought the advertising or message on the map was 
either useful or did not negatively affect their experience. One 
respondent noted that the three types of maps available (on paper, on 
chairlift restraining bars, and posted on the mountaintop) were 
redundant and unnecessary.
    Response. The Agency believes that trail maps that are attached to 
chairlift restraining bars are a positive amenity for skiers and 
snowboarders. However, the interim directive allowed advertising on 
chairlift restraining bars with no requirement that the display include 
a trail map or any other public service feature. Likewise, the interim 
directive did not include any limit on the size or extent of 
advertising that may be placed on chairlift restraining bars. The final 
directive does not allow any advertising on chairlift restraining bars 
unless it is part of a trail map display and conforms to the other 
limitations specified.
    Comment. Some respondents expressed concern that the interim 
directive will lead to advertising in other areas at resorts. One 
respondent stated that considering chairlift restraining bars an indoor 
space will lead to advertising on rope tow handles and platters on 
tows. Another respondent stated that advertising on chairlift 
restraining bars will probably lead to electronic alternating message 
displays.
    Response. The Forest Service believes that the final directive 
includes sufficient restrictions to prevent the

[[Page 27946]]

expansion of advertising into other areas of resorts and undesirable 
formats.
    Comment. One respondent was concerned that allowable commercial 
displays will be beyond the power of the Forest Service to regulate, no 
matter how offensive or tasteless they are.
    Response. The final directive merely addresses the time, place, and 
manner of sponsorship recognition and advertising. The Forest Service 
does not believe advertising and sponsorship recognition under the 
final directive will be objectionable to most members of the public 
because the final directive establishes clear limits on the extent of 
the displays. In addition, State and local government restrictions on 
these displays will still apply. Moreover, the activities offered at 
commercial public service sites tend to be family-oriented, and the 
Agency expects that permit holders will use good judgment as to the 
content of materials they post.
    Comment. One respondent expressed concern that the interim 
directive will make it more difficult for the Forest Service to enforce 
the requirement that permit holders acknowledge in their brochures and 
advertising that their concession is located on NFS lands. Another 
respondent noted that NFS visitors will infer that the Forest Service 
endorses the products and services that are advertised on NFS lands.
    Response. Special use permits for concessions involving privately 
owned improvements continue to require holders to acknowledge in their 
brochures and other printed materials that their concessions are 
located on NFS lands. The final directive expressly states that Forest 
Service symbols must not appear in conjunction with commercial product 
or service names and advertisements and that care must be taken to 
avoid any other appearance of Agency endorsement of products or 
services. The final directive also states that placement of product or 
service names or advertisements on Government vehicles is always 
prohibited. In addition, the final directive addresses endorsement and 
the appearance of endorsement by more clearly describing the situations 
where advertising may be permitted and providing clearer direction for 
sponsorship recognition.

FSM2343.03, Paragraph 12

    Before 2005, Forest Service directives did not address the use of 
sponsorships at commercial public service sites. The 2005 interim 
directive allowed sponsorship recognition and provided guidance on its 
implementation. Since 2005, confusion between advertising and 
sponsorship recognition has impeded consistent application of the 
interim directive and has resulted in approval of some projects that do 
not conform with the interim directive's objective of promoting public 
participation in management of NFS lands. The final directive 
reinforces this objective by emphasizing that sponsorship recognition 
is not intended to offset the cost of operating a public service site, 
attract more customers, or provide financial support for basic elements 
of a permit holder's operations.
    Paragraphs 12(a) through 12(c) closely parallel the interim 
directive in describing how sponsors may be recognized. Paragraph 12(a) 
describes the duration and location of sponsor recognition; paragraph 
12(b) describes the content of allowed recognition; and paragraph 12(c) 
addresses sponsored events and describes how sponsors may be recognized 
at event sites.
    Comment. Some respondents were concerned that the concept of public 
participation in management of NFS lands was not clearly defined in the 
interim directive.
    Response. The Forest Service agrees. The final directive includes 
changes that more clearly define sponsorships and the objectives of 
sponsorship recognition. Under the final directive, events, projects, 
and programs that provide for evaluation of solutions to specific 
natural resource management problems, increase conservation awareness, 
or promote public health or safety will be suitable for sponsorship 
initiatives. Some examples of events, projects, and programs that are 
appropriate for sponsorship include (1) interpretative displays that 
inform visitors about the area's geology, wildlife, or vegetation; (2) 
initiatives seeking public involvement or support for Forest Service 
watershed or wildlife habitat improvement projects or Forest Service 
efforts to reduce the spread of noxious weeds; and (3) promotion of 
public safety programs for visitors to the concession or surrounding 
NFS lands. Exhibit 01 has been added to the final directive to provide 
an example of a plan for an appropriate sponsorship.
    Comment. Several respondents commented about the terms used in the 
interim directive. One respondent stated that ``trademark'' should be 
defined to include a name, word, phrase, slogan, symbol, logo, or 
design that allows the trademark owner to dictate its use in 
identifying a product. Another respondent commented that use of the 
term ``cooperator'' may imply that the interim directive applies to 
interpretive associations that work with the Forest Service.
    Response. The word ``trademark'' is a term of art in advertising 
and business that does not need to be defined in the final directive. 
The term ``cooperator'' is not used in the final directive. The final 
directive applies only to commercial public service sites involving 
privately owned improvements that are authorized under a special use 
permit. Interpretive associations do not operate these concessions.
    Comment. Several respondents commented that sponsor recognition was 
essentially advertising designed to promote brand identification and 
should not be allowed. Some of these respondents believed that 
sponsorship recognition will commercialize NFS lands and that the 
revenues generated will not be devoted to public participation in 
management of NFS lands and will instead generate profits for the 
resorts. Several respondents objected to inclusion of corporate logos 
in sponsorship recognition on the grounds that they were just another 
form of advertising.
    Response. To distinguish sponsorship recognition more clearly from 
advertising, the final directive defines sponsorship as ``monetary or 
in-kind support from an individual or entity for an event, project, or 
program that promotes public participation in or awareness of 
management of National Forest System lands'' (FSM 2340.5). In contrast, 
advertising is defined as ``the act of calling public attention to a 
product or business.'' The Agency believes the final directive includes 
adequate controls to ensure that sponsorship recognition does not 
become advertising by another name.
    Comment. Several respondents expressed concern that sponsorship 
recognition will place undue influence on Forest Service managers. One 
respondent commented that if one sponsor is recognized, it will be 
difficult for the Forest Service to refuse recognition to any other 
sponsor and that the Agency will not be able to prevent posting of 
corporate logos for alcohol, tobacco, and gaming interests. Another 
respondent stated that sponsorship recognition will create an insidious 
and pervasive corrupting influence on cash-starved Forest Service 
managers; that corporations will exert improper leverage over the 
Agency through donations; and that Forest Service officials will be 
forced to solicit contributions.
    Response. Sponsors will enter into sponsorship agreements with 
holders of permits for concessions involving privately owned 
improvements. The Forest Service is not subject to undue influence, as 
the Agency will not be a

[[Page 27947]]

party to these agreements and will receive funds from these agreements 
only to the extent the funds are factored into the land use fee. The 
National Forest Ski Area Permit Fee Act (16 U.S.C. 497c(f)) exempts 
event sponsorship revenue from the land use fee calculation for ski 
area permits. Sponsored events, projects, and programs promote the 
public interest by providing for evaluation of solutions to specific 
natural resource management problems, increasing conservation 
awareness, or promoting public health or safety. The final directive 
does not restrict the number and type of sponsors. Rather, the final 
directive limits how sponsors can be recognized.
    Comment. One respondent commented that sponsorship recognition 
should be expanded beyond resorts to allow other groups to work more 
effectively with the Forest Service.
    Response. The interim and final directives apply only to concession 
sites with privately owned facilities. Expanding sponsorship 
recognition to other contexts is beyond the scope of the interim and 
final directives.
    Comment. Many respondents were concerned that the interim directive 
needed either more specificity or more latitude to provide authorized 
officers with effective guidelines when considering approval of 
sponsorship recognition and outdoor advertising for short-term events. 
Concerns included (1) the need for additional direction on the size, 
scope, location, and timing of sponsor recognition and advertising to 
apply the interim directive consistently on NFS lands; (2) lack of 
sufficient guidance to determine when sponsorship recognition and 
advertising are excessive; (3) insufficient distinction between 
sponsorship and advertising; and (4) excessive constraints on allowable 
recognition.
    Response. The Forest Service agrees that effective guidelines are 
needed when considering approval of sponsorship recognition and outdoor 
advertising. Based on public comments on the interim directive and 
experience gained since 2005, the final directive provides more 
guidance to the authorized officer in determining whether to approve 
advertising and sponsorship recognition. In addition, the final 
directive more clearly differentiates between advertising and 
sponsorship recognition. The Agency believes that advertising and 
placement of commercial displays on NFS lands are generally not 
appropriate and should be allowed only in limited circumstances, 
subject to certain constraints. Therefore, the final directive provides 
only specific exceptions to the advertising prohibition and authorizes 
sponsorship recognition only in specified circumstances that serve the 
public interest, rather than providing more latitude for the authorized 
officer.
    Comment. Several respondents stated that the interim directive does 
not contain sufficient clarity to manage sponsorship recognition 
effectively. Some respondents commented that the interim directive 
should contain criteria for determining how much sponsorship 
recognition should be allowed and should contain provisions preventing 
commercial displays from being installed all over a ski area. One 
respondent stated that the interim directive will allow every chair on 
every chairlift to be turned into a billboard and objected to a 25-foot 
advertising banner for a ski manufacturer on the outside of a yurt 
where skis are rented being considered sponsorship recognition.
    Response. The final directive includes more specificity to allow 
authorized officers to manage sponsorship recognition as intended in 
the interim directive and set more specific limits on the extent of 
advertising. For example, the final directive clarifies that 
sponsorship recognition may not be used to fund services or facilities 
required for the concession. With the additional specificity, the 
Agency believes the final directive will not allow chairs on ski lifts 
to become billboards. A banner for a ski manufacturer placed on the 
outside of a yurt where skis are rented would not meet the requirements 
of a sponsorship.
    Comment. Some respondents were concerned that sponsorship 
recognition would become more prevalent on NFS lands and would appear, 
for example, on ski trail signs.
    Response. The Forest Service believes that the additional 
limitations included in the final directive will prevent inappropriate 
posting of commercial information.
    Comment. One respondent commented that the special events 
provisions in the interim directive give the Forest Service undue 
control over management and promotion of the concessioners' business 
and that the Agency should provide a resort a certain number of days 
each season to allow advertising for special events.
    Response. Paragraph 11 of the final directive includes provisions 
allowing holders to promote the services and accommodations they offer 
at their concession. Furthermore, the final directive allows outdoor 
advertising on chairlift restraining bars and in connection with short-
term events, subject to certain restrictions. However, the Forest 
Service issues concession special use permits to provide for public 
recreation, not simply to provide a business opportunity for permit 
holders.
    Comment. Several respondents expressed concern about sponsorship 
recognition for short-term special events. Some respondents stated that 
temporarily waiving the advertising prohibition for special events is 
too expensive and allows almost any advertising to be approved. Another 
respondent commented that successive and simultaneous short-term events 
will result in de facto permanent advertising and aggressive marketing 
campaigns and will make the national forests look more like a strip 
mall.
    Response. The Forest Service agrees that a temporary waiver is too 
expensive and difficult to manage effectively. The final directive 
eliminates this provision and limits posted commercial information to a 
sponsor's name and trademark. The Forest Service believes that the 
restrictions on advertising in connection with short-term events will 
prevent de facto permanent advertising.
    Comment. One respondent stated that the interim directive should 
allow local ski race teams, working with ski areas, to place company 
sponsor names on the back of chairlifts because the revenue from this 
program would help fund the teams.
    Response. Providing financial support to local ski race teams would 
not promote public participation in management of NFS lands and would 
not qualify for sponsorship recognition in most cases under the final 
directive.

FSM 2343.03, Paragraph 13 (Previously Paragraph 12)

    This section specifies holders' responsibilities for the safety of 
their employees and the public while participating in activities 
covered by the holders' special use permit.
    Comment. Several respondents expressed concerns about skier safety 
with respect to advertising panels placed on chairlift restraining 
bars.
    Response. This paragraph was merely renumbered; no substantive 
changes were made to this paragraph. The Agency does not believe that 
advertising that is part of a trail map display on a chairlift 
restraining bar presents an increased safety risk. The Agency is not 
aware of any safety-related incidents that have occurred since 2005 
when the interim directive went into effect.

FSM 2343.03, Paragraph 14 (Previously Paragraph 13)

    This paragraph requires that advertising of facilities and services 
be

[[Page 27948]]

free from discriminatory statements and include recognition that 
facilities and services are located on NFS lands. This paragraph was 
merely renumbered. No substantive changes were made to this paragraph, 
and no comments were received on this paragraph.

3. Summary of Revisions to the Proposed Directives

    The Agency has made changes to the interim directive based on 
public comments and experience acquired in implementing the interim 
directive since 2005. The Agency believes that the changes to the 
interim directive add clarity and provide for more consistent 
application. In addition, the Agency has revised the interim directive 
to include a definition for sponsorship and a terrain park. The changes 
to the interim directive at FSM 2343.03 are summarized below.
    Paragraph 11--Advertising. The Agency revised this paragraph to 
include the title ``Advertising'' to distinguish this activity more 
clearly from sponsorship; to note that advertising is prohibited except 
as specified in paragraphs 11 and 12; to state that naming of 
facilities intended to promote the products or services of a third 
party is prohibited; to note that the Agency has no authority to 
regulate advertising on non-NFS lands; to add provisions for removal of 
noncompliant advertising and other displays; and to add subparagraphs 
(a) through (f), which provide exceptions to the advertising 
prohibition.
    Paragraph 11(a)--Indoor Spaces. This paragraph more clearly 
addresses advertising in indoor spaces; notes that chairlift 
restraining bars and other ski lift components are not an indoor space; 
requires that indoor advertising not be visible from outdoor locations; 
and clarifies that advertising inside buildings owned by the permit 
holder is permitted.
    Paragraph 11(b)--Chairlift Restraining Bars. This paragraph 
provides for advertising on chairlift restraining bars only when the 
advertising is included as part of a trail map display and only to the 
extent the advertising does not exceed 33 percent of the surface area 
of the panel facing passengers.
    Paragraph 11(c)--Holder Services. This paragraph allows holders to 
post signs and other information at suitable indoor and outdoor 
locations in the permit area that notify visitors of the location of 
services offered at the concession site, provided that outdoor postings 
are limited to those services provided by the holder and identify only 
the name and location of services provided at the concession site. This 
paragraph provides that outdoor postings may not include the name of 
other companies or product descriptions, trademarks, taglines, 
promotional graphics, or any other advertising for those companies.
    Paragraph 11(d)--Holder Name and Logo. This paragraph allows 
holders, contractors, and service providers to use vehicles in the 
permit area that have the name and logo of holder or company attached 
to the exterior of the vehicle.
    Paragraph 11(e)--Printed Materials and Other Off-Site Media. This 
paragraph notes that printed material such as trail map brochures and 
other media that are produced off the NFS and that contain advertising 
may be distributed at the site, but may not be posted in outdoor 
settings in the permit area.
    Paragraph 11(f)--Short-Term Competitive Events. This paragraph 
allows authorized officers to approve outdoor advertising for 
competitive events lasting 21 days or less. This paragraph also states 
that advertising materials may be placed only at the event site and 
must be removed as soon as practicable after the event.
    Paragraph 11(g)--Designated Ski and Snowboard Race Courses and 
Terrain Parks. This paragraph is new and allows entities that provide 
financial or in-kind support for snow sport race courses and terrain 
parks to be recognized at the start and finish points of the courses 
and parks throughout the winter season; states that advertising, 
taglines and other promotional materials may not be posted elsewhere at 
these sites; and requires snow sport race courses and terrain parks to 
be identified in a master development plan or an operating plan 
approved by the authorized officer.
    Paragraph 11(h)--Manufacturer's Name. This paragraph allows for a 
manufacturer's name to be included on products and equipment that are 
used within the permit area when they are made a part of these products 
through the manufacturing process.
    Paragraph 12--Sponsorship. The Agency revised this paragraph to 
include the title ``Sponsorship'' to distinguish this activity more 
clearly from advertising; to delete ``proposed public services'' as an 
example of a sponsorship activity and to eliminate the use of the term 
``cooperator''; to state that sponsorships should promote agency 
conservation education and outdoor environmental education objectives; 
to indicate that sponsorships should not be a means to defray the cost 
of services or facilities; and to note that facilities such as trail 
map bulletin boards, directional signing, and similar postings are not 
appropriate for sponsorship recognition. A second section has been 
added to this section to note that recognition of sponsors should be no 
larger than necessary to be visible at a pedestrian scale and that such 
postings should be consistent with the Forest Service Built Environment 
Image Guide. A new exhibit (FSM 2343.01, exhibit 02) has been added to 
illustrate the appropriate format and content for a sponsorship plan 
submitted by a permit holder to the authorized officer for approval. 
Minor revisions were also made to subsections of this paragraph.
    Paragraph 12(a)--Duration and Location of Recognition. This 
paragraph has been revised to eliminate the use of the term 
``cooperator'' and the reference to recognition on government vehicles, 
since both are addressed earlier in paragraph 12.
    Paragraph 12(b)--Scope of the Recognition. The title of this 
paragraph has been revised from ``Content of the Recognition,'' and the 
content of this paragraph has been revised to eliminate use of the term 
``cooperator''; and to state that taglines and other promotional 
materials must not be included in sponsorship recognition.
    Paragraph 12(c)--Events. The title of this paragraph has been 
revised from ``Special Events,'' and the content of this paragraph has 
been revised to clarify that events are conducted by the holder with 
the support of sponsors; to eliminate the provision that allowed the 
authorized officer temporarily to waive the prohibition on exterior 
advertising; to delete the reference to agency symbols, since this 
restriction is included earlier in paragraph 12; and to limit sponsor 
recognition at events to sponsor names and trademarks.

4. Regulatory Certifications

Environmental Impacts

    Forest Service regulations at 36 CFR 220.6(d)(2) exclude from 
documentation in an environmental assessment (EA) or environmental 
impact statement (EIS) ``rules, regulations, or policies to establish 
Service-wide administrative procedures, program processes, or 
instructions.'' The Agency has concluded that these final directives 
fall within this category of actions and that no extraordinary 
circumstances exist that would require preparation of an EA or EIS.

Regulatory Impact

    The final directive has been reviewed under USDA procedures and 
Executive Order 12866 on regulatory planning and review. It has been 
determined that this

[[Page 27949]]

is not a significant directive. The final directive will not have an 
annual effect of $100 million or more on the economy, nor will it 
adversely affect productivity, competition, jobs, the environment, 
public health and safety, or State or local governments. The final 
directive will not interfere with an action taken or planned by another 
agency, nor will it raise new legal or policy issues. Finally, the 
final directive will not alter the budgetary impact of entitlement, 
grant, user fee, or loan programs or the rights and obligations of 
beneficiaries of those programs. Accordingly, the final directive is 
not subject to Office of Management and Budget review under Executive 
Order 12866.
    Moreover, the Forest Service has considered the final directive in 
light of the Regulatory Flexibility Act (5 U.S.C. 602 et seq.). The 
Agency has determined that the final directive will not have a 
significant economic impact on a substantial number of small entities 
as defined by the Act because the final directive will not impose 
recordkeeping requirements on them; will not significantly affect their 
competitive position in relation to large entities; and will not affect 
their cash flow, liquidity, or ability to remain in the market. The 
benefits of the final directive cannot be quantified and are not likely 
substantially to alter costs to small businesses.

No Takings Implications

    The Agency has analyzed the final directive in accordance with the 
principles and criteria contained in Executive Order 12630. The Agency 
has determined that the final directive does not pose the risk of a 
taking of private property.

Civil Justice Reform

    The Agency has reviewed the final directive under Executive Order 
12988 on civil justice reform. Upon adoption of the final directive, 
(1) all State and local laws and regulations that conflict with the 
final directive or that impede its full implementation will be 
preempted; (2) no retroactive effect will be given to the final 
directive; and (3) administrative proceedings will not be required 
before parties can file suit in court challenging its provisions.

Unfunded Mandates

    Pursuant to Title II of the Unfunded Mandates Reform Act of 1995 (2 
U.S.C. 1531-1538), the Agency has assessed the effects of the final 
directive on State, local, and tribal governments and the private 
sector. The final directive will not compel the expenditure of $100 
million or more by any State, local, or tribal government or anyone in 
the private sector. Therefore, a statement under section 202 of the Act 
is not required.

Federalism

    The Agency has considered the final directive under the 
requirements of Executive Order 13132 on federalism and has determined 
that the final directive conforms with the federalism principles set 
out in this Executive Order; will not impose any compliance costs on 
the States; and will not have substantial direct effects on the States, 
the relationship between the Federal Government and the States, or the 
distribution of power and responsibilities among the various levels of 
government. Therefore, the Agency has determined that no further 
assessment of federalism implications is necessary.

Consultation and Coordination With Indian Tribal Governments

    No comments were received from Indian tribes on the interim 
directive, and no comments regarding the interim directive were 
submitted to the Agency in the years since its publication. The Agency 
believes that most advertising and sponsorship projects that will occur 
under the final directive will be in areas of the NFS that already 
support fairly extensive development for recreation. Proposals for 
sponsored events, projects, and programs will be subject to review, as 
appropriate, under NEPA, which will offer further opportunity for 
consultation with Indian tribes. Accordingly, the final directive does 
not have tribal implications as defined by Executive Order 13175, 
entitled ``Consultation and Coordination with Indian Tribal 
Governments.''

Energy Effects

    The Agency has reviewed the final directive under Executive Order 
13211 of May 18, 2001, ``Actions Concerning Regulations That 
Significantly Affect Energy Supply, Distribution, or Use.'' The Agency 
has determined that the final directive does not constitute a 
significant energy action as defined in the Executive Order.

Controlling Paperwork Burdens on the Public

    The final directive does not contain any recordkeeping or reporting 
requirements or other information collection requirements as defined in 
5 CFR part 1320 that are not already required by law or not already 
approved for use. Accordingly, the review provisions of the Paperwork 
Reduction Act of 1995 (44 U.S.C. 3501 et seq.) and its implementing 
regulations at 5 CFR part 1320 do not apply.

5. Access to the Final Directive

    The Forest Service organizes its Directive System by alphanumeric 
codes and subject headings. The intended audience for this direction is 
Forest Service employees charged with issuing and administrating 
concession special use permits involving privately owned improvements. 
To view the full text of the final directive, visit the Forest 
Service's Web site at https://www.fs.fed.us/im/directives/.

    Dated: March 29, 2013.
Thomas L. Tidwell,
Chief, Forest Service.
[FR Doc. 2013-11299 Filed 5-10-13; 8:45 am]
BILLING CODE 3410-11-P