[Congressional Bills 105th Congress]
[From the U.S. Government Publishing Office]
[S. 1913 Introduced in Senate (IS)]







105th CONGRESS
  2d Session
                                S. 1913

  To require the Secretary of the Interior to sell leaseholds at the 
Canyon Ferry Reservoir in the State of Montana and to establish a trust 
 and fund for the conservation of fish and wildlife and enhancement of 
         public hunting and fishing opportunities in the State.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                             April 2, 1998

 Mr. Baucus (for himself and Mr. Burns) introduced the following bill; 
 which was read twice and referred to the Committee on Environment and 
                              Public Works

_______________________________________________________________________

                                 A BILL


 
  To require the Secretary of the Interior to sell leaseholds at the 
Canyon Ferry Reservoir in the State of Montana and to establish a trust 
 and fund for the conservation of fish and wildlife and enhancement of 
         public hunting and fishing opportunities in the State.

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

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Montana Fish and Wildlife 
Conservation Act of 1998''.

SEC. 2. FINDINGS.

    Congress finds that--
            (1) it is in the interest of the United States for the 
        Secretary of the Interior to sell leaseholds at Canyon Ferry 
        Reservoir in the State of Montana for fair market value if the 
        proceeds from the sale are used--
                    (A) to establish a trust to provide a permanent 
                source of funding to acquire access or other property 
                interests from willing sellers to conserve fish and 
                wildlife and to enhance public hunting and fishing 
                opportunities at the Reservoir and along the Missouri 
                River;
                    (B) to establish a fund to be used to acquire 
                access or other property interests from willing sellers 
                to increase public access to Federal land in the State 
                of Montana and to enhance hunting and fishing 
                opportunities; and
                    (C) to reduce the Pick-Sloan project debt for the 
                Canyon Ferry Unit;
            (2) existing trusts in the State of Montana, including the 
        Rock Creek Trust and the Montana Power Company Missouri-Madison 
        Trust, have provided substantial public benefits by conserving 
        fish and wildlife and by enhancing public hunting and fishing 
        opportunities in the State of Montana;
            (3) many Federal lands in the State of Montana do not have 
        suitable public access, and establishing a fund to acquire 
        easements to those lands from willing sellers would enhance 
        public hunting and fishing opportunities in the State of 
        Montana;
            (4) the sale of the leaseholds at the Reservoir will reduce 
        Federal payments in lieu of taxes and associated management 
        expenditures in connection with the ownership by the Federal 
        Government of the leaseholds while increasing local tax 
        revenues from the new owners of the leased lots; and
            (5) the sale of the leaseholds at the Reservoir will reduce 
        expensive and contentious disputes between the Federal 
        Government and leaseholders, while ensuring that the Federal 
        Government receives full and fair value for the acquisition of 
        the property.

SEC. 3. DEFINITIONS.

    In this Act:
            (1) CFRA.--The term ``CFRA'' means the Canyon Ferry 
        Recreation Association, Incorporated, a Montana corporation.
            (2) Fund.--The term ``Fund'' means the Montana Hunter and 
        Fisherman Access Fund established under section 6(a).
            (3) Lessee.--The term ``lessee'' means the holder of a 
        leasehold described in section 4(b) as of the date of enactment 
        of this Act, and the holder's heirs, executors, and assigns of 
        the holder's leasehold interest.
            (4) Purchaser.--The term ``Purchaser'' means the person or 
        entity 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.
            (7) Trust.--The term ``Trust'' means the Canyon Ferry-
        Missouri River Trust established under section 5(a).

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 the Purchaser.
    (c) Purchase Process.--
            (1) In general.--The Secretary shall--
                    (A) solicit sealed bids for all of the leaseholds; 
                and
                    (B) subject to paragraph (2), sell the leaseholds 
                to the bidder that submits the highest bid above the 
                minimum bid determined under paragraph (2).
            (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 accordance with the appraisal 
        procedures used under Federal law, including, to the extent 
        practicable, the procedures specified in sections 2201.3 
        through 2201.3-5 of title 43, Code of Federal Regulations.
            (3) Right of first refusal.--If the highest bidder is other 
        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) Conditions.--
            (1) Consideration.--As consideration for the conveyance 
        under subsection (a), the Purchaser shall--
                    (A) contribute to the Trust the amount that is 
                equal to 45 percent of the purchase price of the 
                leaseholds;
                    (B) contribute to the Fund the amount that is equal 
                to 45 percent of the purchase price of the leaseholds; 
                and
                    (C) pay the Secretary for deposit in the Treasury 
                of the United States an amount that is equal to 10 
                percent of the purchase price of the leaseholds.
            (2) No charitable deduction.--The Purchaser, any owner, 
        member, or other interest holder in the Purchaser, and any 
        leaseholder shall not be entitled to a charitable deduction 
        under the Internal Revenue Code of 1986 by reason of the making 
        of the contribution under subparagraph (A) or (B) of paragraph 
        (1).
            (3) Option to purchase.--
                    (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.
                    (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 of the improvements made to 
                        the leasehold.
            (4) Historical use.--The Purchaser shall honor the existing 
        property descriptions and historical use restrictions for the 
        leaseholds, as determined by the Bureau of Reclamation.
    (e) Administrative Costs.--Any administrative cost incurred by the 
Secretary incident to the conveyance under subsection (a) shall be 
reimbursed by the Purchaser.

SEC. 5. CANYON FERRY-MISSOURI RIVER TRUST.

    (a) Establishment.--The Secretary shall encourage establishment of 
a nonprofit charitable permanent perpetual trust, similar in structure 
and purpose to the existing trusts referred to in section 1(2), to be 
known as the ``Canyon Ferry-Missouri River Trust'', to provide a 
permanent source of funding to acquire land and interests in land from 
willing sellers at fair market value to conserve fish and wildlife, 
enhance public hunting and fishing opportunities, and improve public 
access at the Reservoir and along the Missouri River and its 
tributaries from the confluence of the Madison River, Gallatin River, 
and Jefferson River downstream to the Reservoir.
    (b) Board of Trustees.--
            (1) Membership.--The trust referred to in subsection (a) 
        shall have a Board of Trustees consisting of 1 representative 
        of each of--
                    (A) local agricultural landowners;
                    (B) a local hunting organization;
                    (C) a statewide hunting organization;
                    (D) a fisheries conservation organization; and
                    (E) a nonprofit land trust or environmental 
                organization.
            (2) Consultation.--In managing the Trust, the Board of 
        Directors shall consult with representatives of--
                    (A) the Bureau of Reclamation;
                    (B) the Forest Service;
                    (C) the Bureau of Land Management;
                    (D) the United States Fish and Wildlife Service;
                    (E) the Montana Department of Fish, Wildlife, and 
                Parks;
                    (F) the Montana Science Institute at Canyon Ferry, 
                Montana; and
                    (G) local governmental bodies (including the Lewis 
                and Clark and Broadwater County Commissioners).
    (c) Use.--
            (1) Principal.--The principal amount of the Trust shall be 
        inviolate.
            (2) Earnings.--Earnings on amounts in the Trust shall be 
        used to carry out subsection (a) and to administer the Trust.
    (d) Management.--Land and interests in land acquired under this 
section shall be managed for the purposes described in subsection (a).

SEC. 6. MONTANA HUNTER AND FISHERMAN ACCESS FUND.

    (a) Establishment.--There is established in the Treasury of the 
United States an interest-bearing account, to be known as the ``Montana 
Hunter and Fisherman Access Fund'', for the purpose of acquiring land 
and interests in land in the State of Montana from willing sellers at 
fair market value to--
            (1) improve public access to Federal land in the State of 
        Montana for hunting or fishing; and
            (2) enhance public hunting and fishing opportunities in the 
        State of Montana through the conservation of fish and wildlife.
    (b) Use.--
            (1) Principal.--The principal amount of the Fund shall be 
        inviolate.
            (2) Earnings.--
                    (A) In general.--Earnings on amounts in the Fund 
                shall be used to carry out subsection (a).
                    (B) Administration.--The earnings shall be used at 
                the joint direction of--
                            (i) the Chief of the Forest Service;
                            (ii) the Director of the Bureau of Land 
                        Management; and
                            (iii) the Director of the United States 
                        Fish and Wildlife Service.
    (c) Management.--Land and interests in land acquired under this 
section shall be managed for the purposes described in subsection (a).
                                 <all>