S. 638 – Analysis of Amendment to the Thye-Blatnik Act

Executive Summary

S. 638 is a narrowly focused technical amendment to the Thye-Blatnik Act of 1948 that modifies how property appraisals are conducted for land transactions under that law. Specifically, it changes the appraisal standard from using "fair appraised value" to using "the highest fair appraised value, including historical fair appraised values," as determined by the Secretary of Agriculture.

Key Provisions

• Primary Amendment: Modifies Section 5 of the 1948 Thye-Blatnik Act (16 U.S.C. 577g) to expand the definition of "fair appraised value"

• New Appraisal Standard: Requires consideration of "the highest fair appraised value," incorporating historical appraisal values rather than just current market value

• Authority Delegation: Places determination authority with the Secretary of Agriculture, who must establish procedures consistent with this new standard

• Scope: While the bill text only shows the amendment language, the change appears to affect land valuation in federal transactions governed by this 1948 Act

Impact Analysis

Who Is Affected:

• Property owners involved in transactions with the federal government under the Thye-Blatnik Act framework
• The Department of Agriculture (implementing agency)
• Potentially federal land management and acquisition programs

Potential Benefits:

• May result in higher property valuations for owners in certain transactions
• Could recognize the historical value of properties beyond current market conditions
• May provide fairer compensation in land dealings with the federal government

Potential Concerns:

• Could increase federal land acquisition costs
• May complicate appraisal processes by requiring historical value analysis
• Potential budget implications for federal programs acquiring private land
• Ambiguity around how "historical fair appraised values" will be determined and verified

Funding & Implementation

• Funding: No direct appropriations specified in the bill text
• Budget Impact: Likely increases federal costs for property acquisitions, though magnitude is unclear
• Responsible Agency: Secretary of Agriculture
• Implementation Timeline: Not specified; would take effect upon enactment
• Implementation Requirements: The Secretary would need to develop procedures for determining and evaluating "highest fair appraised values, including historical fair appraised values"

Political Context

Legislation Type: Technical/Authorization amendment to existing statute

Bipartisan Elements: The bill was introduced by two female senators (Ms. Smith and Ms. Klobuchar), suggesting bipartisan sponsorship (Klobuchar is a Democrat from Minnesota; the Thye-Blatnik Act has Minnesota origins)

Potential Areas of Discussion:

• Whether higher valuations represent fairness or unnecessary federal spending
• How "historical values" will be objectively determined
• Impact on federal budgets for land acquisition and conservation programs
• Whether this affects specific categories of land transactions or applies broadly

Status: Introduced February 19, 2025; referred to the Committee on Agriculture, Nutrition, and Forestry

Note: The Thye-Blatnik Act of 1948 primarily relates to federal land acquisition and conservation in the upper Midwest, particularly around the Superior National Forest region. This amendment may have regional implications for property valuations in those areas.