[Congressional Bills 105th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4469 Introduced in House (IH)]







105th CONGRESS
  2d Session
                                H. R. 4469

  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.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             August 6, 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, for fair market value, convey certain properties around 
  Canyon Ferry Reservoir, Montana, to the lessees of those properties.

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

SECTION 1. FINDINGS.

    The 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) eliminating 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 the Canyon Ferry 
        Recreation Association, Incorporated, a Montana corporation.
            (2) Lessee.--The term ``Lessee'' means the leaseholder of 
        any 1 of the cabin sites 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 in that 
        cabin site.
            (3) Property.--The term ``Property'' means any 1 of the 
        cabin sites described in section 4(b).
            (4) Properties.--The term ``Properties'' means all 265 of 
        the cabin sites (and related parcels) described in section 
        4(b).
            (5) Purchaser.--The term ``Purchaser'' means a person or 
        entity, excluding CFRA, that purchases the Properties under 
        section 4.
            (6) Reservoir.--The term ``Reservoir'' means the Canyon 
        Ferry Reservoir in the State of Montana.
            (7) Secretary.--The term ``Secretary'' means the Secretary 
        of the Interior.
            (8) Trust.--The term ``Trust'' means the Canyon Ferry Lake 
        Trust established pursuant to section 6.

SEC. 4. SALE OF PROPERTIES.

    (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 Properties described 
        in subsection (b), subject to valid existing rights; and
            (2) easements for--
                    (A) vehicular access to each Property;
                    (B) access to and the use of 1 dock per Property; 
                and
                    (C) access to and the use of all boathouses, ramps, 
                retaining walls, and other improvements for which 
                access is provided in the Property leases as of the 
                date of this Act.
    (b) Description of Properties.--
            (1) In general.--The Properties 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; and
                    (B) any small parcels contiguous to the Properties 
                (not including shoreline or land 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 and of each parcel determined by 
        the Secretary under paragraph (1)(B) shall be determined by 
        agreement between the Secretary and CFRA.
    (c) Purchase Process.--
            (1) In general.--The Secretary--
                    (A) shall solicit sealed bids for the Properties;
                    (B) shall, subject to paragraph (2), sell the 
                Properties to the bidder that submits the highest bid 
                above the minimum bid determined under paragraph (2); 
                and
                    (C) shall not accept any bid for less than all of 
                the Properties in one bundle.
            (2) Minimum bid.--Before accepting bids, the Secretary, in 
        consultation with CFRA, shall establish a minimum bid based on 
        an appraisal of the fair market value of the Properties, 
        exclusive of the value of private improvements made by the 
        leaseholders before the date of the conveyance, by an appraisal 
        conducted in conformance with the Uniform Standards of 
        Professional Appraisal Practice.
            (3) Right of first refusal.--If the highest bidder is a 
        person other than CFRA, CFRA shall have the right to match the 
        highest bid and purchase the Properties 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 or CFRA shall give 
                each leaseholder of record of a Property conveyed under 
                this section an option to purchase the Property at fair 
                market value as determined under subsection (c)(2).
                    (B) Nonpurchasing lessees.--
                            (i) Right to continue lease.--A Lessee that 
                        is unable or unwilling to purchase a Property 
                        shall be provided the opportunity to continue 
                        to lease the Property for fair market value 
                        rent under the same terms and conditions as 
                        apply under the existing lease for the 
                        property, 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 Property, the 
                        Purchaser shall compensate the Lessee for the 
                        fair market value, as determined pursuant to 
                        customary appraisal procedures, of all 
                        improvements made to the Property. The Lessee 
                        may sell the improvements to the 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 Property 
        descriptions and historical use restrictions for the 
        leaseholds.
            (3) CFRA purchases.--
                    (A) Conveyance in lieu of payment.--If CFRA is the 
                highest bidder, or matches the highest bid, it may 
                convey to the Trust in lieu of payment, the fee title 
                to any Property not purchased by a Lessee under 
                paragraph (1). The value of each Property contribution 
                under this paragraph shall be the fair market value of 
                the Property under this section.
                    (B) Continuation of leases.--
                            (i) In general.--The Trust shall allow a 
                        Lessee that is unable or unwilling to purchase 
                        a Property under paragraph (1) to continue to 
                        lease the Property pursuant to the terms and 
                        conditions of the lease in effect for the 
                        Property on the date of enactment of this Act.
                            (ii) Rental payments.--All rents received 
                        during the continuation of a lease under clause 
                        (i) shall be paid to the Trust.
                            (iii) 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 Trust and conveying the fee 
                        interest in the Property.
                    (C) Conveyance by trust.--All conveyances of a 
                Property and any related parcels under subsection 
                (b)(1)(B) by the Trust shall be at fair market value as 
                determined by a new appraisal, but in no event may the 
                Trust convey any Property to a Lessee for an amount 
                less than the value established for the Property by the 
                appraisal conducted pursuant to subsection (c)(2).
    (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.--If a Lessee purchases a Property from 
the Purchaser or CFRA, the Secretary, upon request by the Lessee, shall 
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 the Property.
    (i) Costs.--The Lessee shall reimburse CFRA for a proportionate 
share of the costs to CFRA of completing the transactions contemplated 
by this Act, including any interest charges.
    (j) Costs.--The Lessee shall reimburse the Trust for a 
proportionate share of the costs to the Trust of completing the 
transactions contemplated by this Act, including any interest charges. 
In addition, the Lessee shall reimburse the Trust for costs, including 
costs of the new appraisal, associated with conveying the Property from 
the Trust to the Lessee.

SEC. 5. AGREEMENT.

    (a) Requirement.--Not later than 6 months after the date of the 
enactment of this Act, the Secretary, acting through the Bureau of 
Reclamation, shall negotiate and enter into an agreement with the 
Broadwater County, Montana, Board of Commissioners to transfer to the 
Board the authority to manage the Silo's recreation area. The Secretary 
shall grant easements to the Board for access roads to the area.
    (b) EIS and Safety Analysis.--Not later than 6 months after the 
date of the enactment of this Act, the Secretary, acting through the 
Bureau of Reclamation, shall assess the need for creating a harbor 
adjacent to the eastern shore of the south half of the Reservoir.

SEC. 6. USE OF PROCEEDS.

    (a) In General.--Proceeds of conveyances under this Act shall be 
available as follows:
            (1) 10 percent of the proceeds shall be applied by the 
        Secretary of the Treasury to reduce the outstanding debt for 
        the Pick-Sloan project at Canyon Ferry Reservoir.
            (2) 45 percent of the proceeds shall be deposited into a 
        separate account in the Treasury and shall be available to the 
        Secretary, subject to appropriations, for purchasing land or 
        conversion easements in the State of Montana.
            (3) 45 percent of the proceeds shall be available without 
        further appropriation to the Canyon Ferry Lake Trust 
        established under subsection (b), for the purposes of enhancing 
        recreation, fisheries, and conservation in and around the 
        Reservoir.
    (b) Canyon Ferry Lake Trust.--
            (1) In general.--The County Commissions of Broadwater 
        County and Lewis and Clark County, Montana, may jointly 
        establish in accordance with this subsection a perpetual public 
        trust for purposes of this Act. The trust shall be known as the 
        ``Canyon Ferry Lake Trust''. The corpus of the Trust shall 
        consist of amounts made available under subsection (a)(3).
            (2) Requirements.--A trust established under this 
        subsection must--
                    (A) be established in accordance with the laws of 
                the State of Montana governing public trusts, for the 
                purposes of enhancing recreation, fisheries, and 
                conservation in and around the Reservoir; and
                    (B) be held by a board of trustees that has 
                sufficient legal authorities to enable it to manage and 
                use, in accordance with this subsection, amounts made 
                available to the Trust under subsection (a)(3).
            (3) Trustees.--The board of trustees for the Trust shall be 
        comprised of the following:
                    (A) One appointee of the County Commission of 
                Broadwater County, Montana.
                    (B) One appointee of the County Commission of Lewis 
                and Clark County, Montana.
                    (C) One local agricultural landowner, appointed by 
                the Lewis and Clark and Broadwater County Commissions, 
                Montana.
                    (D) One representative of a local hunting 
                organization, appointed by the Lewis and Clark and 
                Broadwater County Commissions, Montana.
                    (E) One representative of a fisheries conservation 
                organization, appointed by the Lewis and Clark and 
                Broadwater County Commissions, Montana.
                    (F) One appointee of the Commissioner of the Bureau 
                of Reclamation or his or her designee.
                    (G) One appointee of the Director of the Montana 
                Fish, Wildlife and Parks Department or his designee.
            (4) Use of corpus.--The corpus of the Trust shall be used 
        by the board of trustees for the Trust as follows:
                    (A) An amount equal to \1/3\ of amounts available 
                to the Trust under subsection (a)(3) shall be made 
                available to Broadwater County, Montana, to improve 
                access in the Broadwater County portion of the 
                Reservoir.
                    (B) An amount equal to \2/3\ of amounts available 
                to the Trust under subsection (a)(3) shall be used for 
                the following:
                            (i) Improvement of fisheries of the 
                        Reservoir.
                            (ii) Improvement of campgrounds at the 
                        Reservoir.
                            (iii) Lakeshore conservation, conservation 
                        easements, and public access to the Reservoir 
                        and the watershed of the Missouri River from 
                        Canyon Ferry Dam to the confluence of the 
                        Madison, Jefferson, and Gallatin Rivers.
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