[Congressional Record Volume 144, Number 41 (Thursday, April 2, 1998)]
[Senate]
[Pages S3127-S3129]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mr. BAUCUS (for himself and Mr. Burns):
  S. 1913. 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; to the Committee on Environment and Public Works.


         the montana fish and wildlife conservation act of 1998

  Mr. BAUCUS. Mr. President, I rise today to announce the introduction 
of ``The Montana Fish and Wildlife Conservation Act of 1998.'' I am 
pleased to be joined on this bill by my Colleague from Montana, Senator 
Burns. This bill will help protect important lands in Montana for the 
use and enjoyment of all Americans. It will protect our hunting and 
fishing heritage and ensure that our children and our grandchildren can 
enjoy our great wild lands, just as we do today.

  Canyon Ferry Reservoir sits just east of Helena, Montana. Along the 
north shore of the reservoir, there are 265 cabin sites that have been 
leased by the Bureau of Reclamation for over two decades. On these 
sites, families have built cabins and houses, car ports and garages, 
and planted lawns and gardens. Many families now live in these cabins 
year-round.
  These cabin sites have been a constant management problem for the 
Bureau of Reclamation. In addition to managing the reservoir, the 
Bureau of Reclamation has been forced to play landlord. Like all 
landlords, the Bureau of Reclamation has often been at odds with the 
cabin owners over rental payments and maintenance of the property. This 
conflict has damaged public good will and created administrative 
expenses for the government as appeals are filed to respond to the 
conflict of the day.
  The Montana Fish and Wildlife Conservation Act establishes an 
equitable means of resolving these conflicts and, at the same time, 
provide substantial benefit to the public. This Act proposes to sell 
all 265 cabin sites through a sealed bid process with the minimum bid 
set at fair market value determined in accordance with federal 
appraisal standards. All existing lease arrangements would have to be 
honored by the purchaser of the 265 cabin sites, and each cabin owner 
would have to be given an option to purchase their cabin site from the 
successful bidder. In this way, the Act ensures that the public will 
receive a maximum return on the investment, while at the same time, 
fully protecting the interests of the current leaseholders.
  The Montana Fish and Wildlife Conservation Act of 1998 would use the 
proceeds from this sale to establish two funds for the conservation of 
fish and wildlife and would return 10% of the proceeds to the U.S. 
Treasury.
  The first fund established by this Act, the Canyon Ferry-Missouri 
Trust, would be a perpetual endowment fund with 45% of the proceeds 
from the sale of the cabin sites. It would be used for the public 
acquisition of property at Canyon Ferry Reservoir and along the 
Missouri River and its tributaries upstream to the confluence of the 
Madison, Jefferson, and Gallatin Rivers.
  This trust would be managed by a board consisting of representatives 
of local and statewide sportsmens organizations and local landowners. 
The Canyon Ferry-Missouri River Endowment would be used to purchase 
public access to hunting and fishing sites and to acquire property and 
conservation easements to enhance public hunting and fishing 
opportunities at the reservoir and along the Missouri. All property 
acquired by this trust would be purchased from willing sellers.
  The second fund, Montana Hunter and Fisherman Access Fund would be a 
state-wide fund established with another 45% of the proceeds from the 
sale of the cabin sites. It would be used to acquire public access to 
federal lands in Montana and to acquire property and conservation 
easements to enhance public hunting and fishing opportunities across 
the state. This fund would be managed by the Bureau of Land Management, 
the Forest Service, and Fish and Wildlife Service. This fund could be 
used to acquire property only from willing sellers.
  The remaining 10% of the proceeds from the sale of the cabin sites 
would be returned to the U.S. Treasury.
  The Montana Fish and Wildlife Conservation Act of 1998 presents an 
exciting opportunity for us to ensure that our children can enjoy 
hunting and fishing just as we do. This bill will improve access to 
public lands and will protect important fish and wildlife habitat for 
the benefit of all Americans. It does so by selling cabin sites which 
currently are providing very few benefits to the general public while 
causing significant management conflicts and expenses for the Bureau of 
Reclamation.
  This is a fair bill that is widely supported by cabin owners, local 
land owners, and sportsmen throughout Montana. There are a number of 
issues that still need to be ironed out with this bill. In particular, 
the Canyon Ferry Recreation Association (the association of cabin 
owners) has expressed concern that they may not financially be able to 
step into the role of landlord for those leasees who are unable to 
purchase the cabin sites should be Association be the highest bidder. 
We'll have to work through these and other issues as this bill moves 
forward.
  Nonetheless, Mr. President, I believe that this bill is a good start. 
I look forward to working with my Colleague from Montana and with all 
the members of the Senate to finalize and pass

[[Page S3128]]

this legislation for the benefit of America's fish and wildlife 
heritage.
  Mr. President, I urge my colleagues to join me in supporting this 
important bill.
  Mr. President, I ask unanimous consent that the text of the bill be 
printed in the Record.
  There being no objection, the bill was ordered to be printed in the 
Record, as follows:

                                S. 1913

       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 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

[[Page S3129]]

     ``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).
                                 ______