[Congressional Bills 105th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3963 Introduced in House (IH)]







105th CONGRESS
  2d Session
                                H. R. 3963

  To establish terms and conditions under which the Secretary of the 
 Interior shall convey leaseholds in certain properties around Canyon 
                       Ferry Reservoir, Montana.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                              May 22, 1998

   Mr. Hill introduced the following bill; which was referred to the 
                         Committee on Resources

_______________________________________________________________________

                                 A BILL


 
  To establish terms and conditions under which the Secretary of the 
 Interior shall convey leaseholds in certain properties around Canyon 
                       Ferry Reservoir, Montana.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. FINDINGS.

    Congress finds that the conveyance of the Properties described in 
section 4(b) to the Lessees of those Properties for fair market value 
would have the beneficial results of--
            (1) reducing Pick-Sloan project debt for the Canyon Ferry 
        Unit;
            (2) providing a permanent source of funding for projects 
        that develop and maintain public recreation, and that conserve 
        and enhance fish and wildlife opportunities in the State of 
        Montana;
            (3) reducing Federal payments in lieu of taxes and 
        associated management expenditures in connection with the 
        Government's ownership of the Properties while increasing local 
        tax revenues from the new owners; and
            (4) eliminating expensive and contentious disputes between 
        the Secretary and leaseholders while ensuring that the Federal 
        Government receives full and fair value for the acquisition of 
        the Properties.

SEC. 2. PURPOSE.

    The purpose of this Act is to establish terms and conditions under 
which the Secretary of the Interior shall, for fair market value, 
convey certain Properties around Canyon Ferry Reservoir, Montana, to 
the Lessees of those Properties.

SEC. 3. DEFINITIONS.

    In this Act:
            (1) CFRA.--The term ``CFRA'' means Canyon Ferry Recreation 
        Association, Incorporated, a Montana corporation.
            (2) Lessee.--The term ``Lessee'' means the leaseholder of 1 
        of the properties described in section 4(b) on the date of 
        enactment of this Act and the leaseholder's heirs, executors, 
        and assigns of their leasehold interest.
            (3) Property.--The term ``Property'' means 1 of the 
        properties described in section 4(b).
            (4) Purchaser.--The term ``Purchaser'' means a person or 
        entity, excluding CFRA, that purchases the 265 leaseholds under 
        section 4.
            (5) Reservoir.--The term ``Reservoir'' means the Canyon 
        Ferry Reservoir in the State of Montana.
            (6) Secretary.--The term ``Secretary'' means the Secretary 
        of the Interior.

SEC. 4. SALE OF LEASEHOLDS.

    (a) In General.--Subject to subsection (c) and notwithstanding any 
other provision of law, the Secretary shall sell at fair market value--
            (1) all right, title, and interest of the United States in 
        and to all (but not fewer than all) of the leaseholds described 
        in subsection (b), subject to valid existing rights; and
            (2) easements for--
                    (A) vehicular access to each leasehold;
                    (B) access to and the use of 1 dock per leasehold; 
                and
                    (C) access to and the use of all boathouses, ramps, 
                retaining walls, and other improvements for which 
                access is provided in the leases as of the date of this 
                Act.
    (b) Description of Leaseholds.--
            (1) In general.--The leaseholds to be conveyed are--
                    (A) the 265 cabin sites of the Bureau of 
                Reclamation located along the northern portion of the 
                Reservoir in portions of sections 2, 11, 12, 13, 15, 
                22, 23, and 26, Township 10 North, Range 1 West; plus
                    (B) any small parcels contiguous to the leaseholds 
                (not including shoreline property or property needed to 
                provide public access to the shoreline of the 
                Reservoir) that the Secretary determines should be 
                conveyed in order to eliminate inholdings and 
                facilitate administration of surrounding land remaining 
                in Federal ownership.
            (2) Acreage; legal description.--The acreage and legal 
        description of each Property shall be agreed on by the 
        Secretary and CFRA.
    (c) Purchase Process.--
            (1) In general.--The Secretary shall--
                    (A) solicit sealed bids for all of the leaseholds;
                    (B) subject to paragraph (2), sell the leaseholds 
                to the bidder that submits the highest bid above the 
                minimum bid determined under paragraph (2); and
                    (C) only accept bids for all 265 leaseholds.
            (2) Minimum bid.--Before accepting bids, the Secretary, in 
        consultation with interested bidders, shall establish a minimum 
        bid based on an appraisal of the fair market value of the 
        leaseholds, exclusive of the value of private improvements made 
        by the leaseholders before the date of the conveyance by means 
        of an appraisal conducted in conformance with the Uniform 
        Standards of Professional Appraisal Practice.
            (3) Right of first refusal.--If the highest bidder is other 
        than CFRA, CFRA shall have the right to match the highest bid 
        and purchase the leaseholds at a price equal to the amount of 
        that bid.
    (d) Terms of Conveyance.--
            (1) Purchaser to extend option to purchase or to continue 
        leasing.--
                    (A) In general.--The Purchaser shall give each 
                leaseholder of record of a leasehold conveyed under 
                this section an option to purchase the leasehold at 
                fair market value as determined in subsection (c)(2).
                    (B) Nonpurchasing lessees.--
                            (i) Right to continue lease.--A Lessee that 
                        is unable or unwilling to purchase a Property 
                        shall be permitted to continue to lease the 
                        Property for fair market value rent under the 
                        same terms and conditions as the existing 
                        leases, including the right to renew the term 
                        of the existing lease for 2 consecutive 5-year 
                        terms.
                            (ii) Compensation for improvements.--If a 
                        Lessee declines to purchase a leasehold, the 
                        Purchaser shall compensate the Lessee for the 
                        full market value, as determined pursuant to 
                        customary appraisal procedures, of all 
                        improvements made to the leasehold. The Lessee 
                        may sell the improvements to Purchaser at any 
                        time, but the sale shall be completed by the 
                        final termination of the lease, after all 
                        renewals as provided in clause (i).
            (2) Historical use.--The Purchaser shall honor the existing 
        Property descriptions and historical use restrictions for the 
        leaseholds.
            (3) Continuation of leases.--
                    (A) In general.--A Lessee that is unable or 
                unwilling to purchase a leasehold shall be permitted to 
                continue to lease the property pursuant to the terms 
                and conditions of the lease, existing on the date of 
                enactment of this Act.
                    (B) Rental payments.--All rents received during the 
                continuation of a lease under subparagraph (A) shall be 
                paid to the Purchaser.
                    (C) Limitation on right to transfer lease.--Subject 
                to valid existing rights, a Lessee may not sell or 
                otherwise assign or transfer the leasehold without 
                purchasing the property from the Purchaser and 
                conveying the fee interest in the property.
    (e) Administrative Costs.--Any reasonable administrative cost 
incurred by the Secretary incident to the conveyance under subsection 
(a) shall be reimbursed by the Purchaser or CFRA.
    (f) Timing.--The Secretary shall make every effort to complete the 
conveyance under subsection (a) not later than 1 year after the date of 
enactment of this Act.
    (g) Closing.--Real estate closings to complete the conveyance under 
subsection (a) may be staggered to facilitate the conveyance as agreed 
to by the Secretary and the Purchaser or CFRA.
    (h) Conveyance to Lessee.--Where the Lessee will purchase the 
leasehold from Purchaser or CFRA, the Lessee may request the Secretary 
to have the conveyance documents prepared in the Lessee's name or names 
in order to minimize the time and documents required to complete the 
closing for each leasehold.
    (i) Costs.--The Lessee shall reimburse CFRA for a proportionate 
share of the costs to CFRA in completing the transactions contemplated 
by this Act, including any interest charges.
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