[Congressional Record Volume 146, Number 124 (Friday, October 6, 2000)]
[Senate]
[Pages S10095-S10107]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                          AMENDMENTS SUBMITTED

                                 ______
                                 

    COMPREHENSIVE RETIREMENT SECURITY AND PENSION REFORM ACT OF 2000

                                 ______
                                 

               JEFFORDS (AND KENNEDY) AMENDMENT NO. 4301

  (Ordered to lie on the table.)
  Mr. JEFFORDS (for himself and Mr. Kennedy) submitted an amendment 
intended to be proposed by them to the bill (H.R. 1102) to provide for 
pension reform, and for other purposes; as follows:

       At the end of the bill, add the following:

                       TITLE IX--ERISA PROVISIONS

     SEC. 901. MISSING PARTICIPANTS.

       (a) In General.--Section 4050 of the Employee Retirement 
     Income Security Act of 1974 (29 U.S.C. 1350) is amended by 
     redesignating subsection (c) as subsection (e) and by 
     inserting after subsection (b) the following new subsection:
       ``(c) Multiemployer Plans.--The corporation shall prescribe 
     rules similar to the rules in subsection (a) for 
     multiemployer plans covered by this title that terminate 
     under section 4041A.
       ``(d) Plans Not Otherwise Subject to Title.--
       ``(1) Transfer to corporation.--The plan administrator of a 
     plan described in paragraph (4) may elect to transfer a 
     missing participant's benefits to the corporation upon 
     termination of the plan.
       ``(2) Information to the corporation.--To the extent 
     provided in regulations, the plan administrator of a plan 
     described in paragraph (4) shall, upon termination of the 
     plan, provide the corporation information with respect to 
     benefits of a missing participant if the plan transfers such 
     benefits--
       ``(A) to the corporation, or
       ``(B) to an entity other than the corporation or a plan 
     described in paragraph (4)(B)(ii).
       ``(3) Payment by the corporation.--If benefits of a missing 
     participant were transferred to the corporation under 
     paragraph (1), the corporation shall, upon location of the 
     participant or beneficiary, pay to the participant or 
     beneficiary the amount transferred (or the appropriate 
     survivor benefit) either--
       ``(A) in a single sum (plus interest), or
       ``(B) in such other form as is specified in regulations of 
     the corporation.
       ``(4) Plans described.--A plan is described in this 
     paragraph if--
       ``(A) the plan is a pension plan (within the meaning of 
     section 3(2))--
       ``(i) to which the provisions of this section do not apply 
     (without regard to this subsection), and
       ``(ii) which is not a plan described in paragraphs (2) 
     through (11) of section 4021(b), and
       ``(B) at the time the assets are to be distributed upon 
     termination, the plan--
       ``(i) has missing participants, and
       ``(ii) has not provided for the transfer of assets to pay 
     the benefits of all missing participants to another pension 
     plan (within the meaning of section 3(2)).
       ``(5) Certain provisions not to apply.--Subsections (a)(1) 
     and (a)(3) shall not apply to a plan described in paragraph 
     (4).''.
       (b) Effective Date.--The amendment made by this section 
     shall apply to distributions made after final regulations 
     implementing subsections (c) and (d) of section 4050 of the 
     Employee Retirement Income Security Act of 1974 (as added by 
     subsection (a)), respectively, are prescribed.

     SEC. 902. REDUCED PBGC PREMIUM FOR NEW PLANS OF SMALL 
                   EMPLOYERS.

       (a) In General.--Subparagraph (A) of section 4006(a)(3) of 
     the Employee Retirement Income Security Act of 1974 (29 
     U.S.C. 1306(a)(3)(A)) is amended--
       (1) in clause (i), by inserting ``other than a new single-
     employer plan (as defined in subparagraph (F)) maintained by 
     a small employer (as so defined),'' after ``single-employer 
     plan,'',
       (2) in clause (iii), by striking the period at the end and 
     inserting ``, and'', and
       (3) by adding at the end the following new clause:
       ``(iv) in the case of a new single-employer plan (as 
     defined in subparagraph (F)) maintained by a small employer 
     (as so defined) for the plan year, $5 for each individual who 
     is a participant in such plan during the plan year.''.
       (b) Definition of New Single-Employer Plan.--Section 
     4006(a)(3) of the Employee Retirement Income Security Act of 
     1974 (29 U.S.C. 1306(a)(3)) is amended by adding at the end 
     the following new subparagraph:
       ``(F)(i) For purposes of this paragraph, a single-employer 
     plan maintained by a contributing sponsor shall be treated as 
     a new single-employer plan for each of its first 5 plan years 
     if, during the 36-month period ending on the date of the 
     adoption of such plan, the sponsor or any member of such 
     sponsor's controlled group (or any predecessor of either) 
     did not establish or maintain a plan to which this title 
     applies with respect to which benefits were accrued for 
     substantially the same employees as are in the new single-
     employer plan.
       ``(ii)(I) For purposes of this paragraph, the term `small 
     employer' means an employer which on the first day of any 
     plan year has,

[[Page S10096]]

     in aggregation with all members of the controlled group of 
     such employer, 100 or fewer employees.
       ``(II) In the case of a plan maintained by two or more 
     contributing sponsors that are not part of the same 
     controlled group, the employees of all contributing sponsors 
     and controlled groups of such sponsors shall be aggregated 
     for purposes of determining whether any contributing sponsor 
     is a small employer.''.
       (c) Effective Date.--The amendments made by this section 
     shall apply to plans established after December 31, 2000.

     SEC. 903. REDUCTION OF ADDITIONAL PBGC PREMIUM FOR NEW AND 
                   SMALL PLANS.

       (a) New Plans.--Subparagraph (E) of section 4006(a)(3) of 
     the Employee Retirement Income Security Act of 1974 (29 
     U.S.C. 1306(a)(3)(E)) is amended by adding at the end the 
     following new clause:
       ``(v) In the case of a new defined benefit plan, the amount 
     determined under clause (ii) for any plan year shall be an 
     amount equal to the product of the amount determined under 
     clause (ii) and the applicable percentage. For purposes of 
     this clause, the term `applicable percentage' means--
       ``(I) 0 percent, for the first plan year.
       ``(II) 20 percent, for the second plan year.
       ``(III) 40 percent, for the third plan year.
       ``(IV) 60 percent, for the fourth plan year.
       ``(V) 80 percent, for the fifth plan year.

     For purposes of this clause, a defined benefit plan (as 
     defined in section 3(35)) maintained by a contributing 
     sponsor shall be treated as a new defined benefit plan for 
     each of its first 5 plan years if, during the 36-month period 
     ending on the date of the adoption of the plan, the sponsor 
     and each member of any controlled group including the sponsor 
     (or any predecessor of either) did not establish or maintain 
     a plan to which this title applies with respect to which 
     benefits were accrued for substantially the same employees as 
     are in the new plan.''.
       (b) Small Plans.--Paragraph (3) of section 4006(a) of the 
     Employee Retirement Income Security Act of 1974 (29 U.S.C. 
     1306(a)), as amended by section 902(b), is amended--
       (1) by striking ``The'' in subparagraph (E)(i) and 
     inserting ``Except as provided in subparagraph (G), the'', 
     and
       (2) by inserting after subparagraph (F) the following new 
     subparagraph:
       ``(G)(i) In the case of an employer who has 25 or fewer 
     employees on the first day of the plan year, the additional 
     premium determined under subparagraph (E) for each 
     participant shall not exceed $5 multiplied by the number of 
     participants in the plan as of the close of the preceding 
     plan year.
       ``(ii) For purposes of clause (i), whether an employer has 
     25 or fewer employees on the first day of the plan year is 
     determined taking into consideration all of the employees of 
     all members of the contributing sponsor's controlled group. 
     In the case of a plan maintained by two or more contributing 
     sponsors, the employees of all contributing sponsors and 
     their controlled groups shall be aggregated for purposes of 
     determining whether the 25-or-fewer-employees limitation has 
     been satisfied.''.
       (c) Effective Dates.--
       (1) Subsection (a).--The amendments made by subsection (a) 
     shall apply to plans established after December 31, 2000.
       (2) Subsection (b).--The amendments made by subsection (b) 
     shall apply to plan years beginning after December 31, 2000.

     SEC. 904. AUTHORIZATION FOR PBGC TO PAY INTEREST ON PREMIUM 
                   OVERPAYMENT REFUNDS.

       (a) In General.--Section 4007(b) of the Employment 
     Retirement Income Security Act of 1974 (29 U.S.C. 1307(b)) is 
     amended--
       (1) by striking ``(b)'' and inserting ``(b)(1)'', and
       (2) by inserting at the end the following new paragraph:
       ``(2) The corporation is authorized to pay, subject to 
     regulations prescribed by the corporation, interest on the 
     amount of any overpayment of premium refunded to a designated 
     payor. Interest under this paragraph shall be calculated at 
     the same rate and in the same manner as interest is 
     calculated for underpayments under paragraph (1).''.
       (b) Effective Date.--The amendment made by subsection (a) 
     shall apply to refunds made on or after the date of the 
     enactment of this Act.

     SEC. 905. SUBSTANTIAL OWNER BENEFITS IN TERMINATED PLANS.

       (a) Modification of Phase-In of Guarantee.--Section 
     4022(b)(5) of the Employee Retirement Income Security Act of 
     1974 (29 U.S.C. 1322(b)(5)) is amended to read as follows:
       ``(5)(A) For purposes of this paragraph, the term `majority 
     owner' means an individual who, at any time during the 60-
     month period ending on the date the determination is being 
     made--
       ``(i) owns the entire interest in an unincorporated trade 
     or business,
       ``(ii) in the case of a partnership, is a partner who owns, 
     directly or indirectly, 50 percent or more of either the 
     capital interest or the profits interest in such partnership, 
     or
       ``(iii) in the case of a corporation, owns, directly or 
     indirectly, 50 percent or more in value of either the voting 
     stock of that corporation or all the stock of that 
     corporation.
     For purposes of clause (iii), the constructive ownership 
     rules of section 1563(e) of the Internal Revenue Code of 1986 
     shall apply (determined without regard to section 
     1563(e)(3)(C)).
       ``(B) In the case of a participant who is a majority owner, 
     the amount of benefits guaranteed under this section shall 
     equal the product of--
       ``(i) a fraction (not to exceed 1) the numerator of which 
     is the number of years from the later of the effective date 
     or the adoption date of the plan to the termination date, and 
     the denominator of which is 10, and
       ``(ii) the amount of benefits that would be guaranteed 
     under this section if the participant were not a majority 
     owner.''.
       (b) Modification of Allocation of Assets.--
       (1) Section 4044(a)(4)(B) of the Employee Retirement Income 
     Security Act of 1974 (29 U.S.C. 1344(a)(4)(B)) is amended by 
     striking ``section 4022(b)(5)'' and inserting ``section 
     4022(b)(5)(B)''.
       (2) Section 4044(b) of such Act (29 U.S.C. 1344(b)) is 
     amended--
       (A) by striking ``(5)'' in paragraph (2) and inserting 
     ``(4), (5),'', and
       (B) by redesignating paragraphs (3) through (6) as 
     paragraphs (4) through (7), respectively, and by inserting 
     after paragraph (2) the following new paragraph:
       ``(3) If assets available for allocation under paragraph 
     (4) of subsection (a) are insufficient to satisfy in full the 
     benefits of all individuals who are described in that 
     paragraph, the assets shall be allocated first to benefits 
     described in subparagraph (A) of that paragraph. Any 
     remaining assets shall then be allocated to benefits 
     described in subparagraph (B) of that paragraph. If assets 
     allocated to such subparagraph (B) are insufficient to 
     satisfy in full the benefits described in that subparagraph, 
     the assets shall be allocated pro rata among individuals on 
     the basis of the present value (as of the termination date) 
     of their respective benefits described in that 
     subparagraph.''.
       (c) Conforming Amendments.--
       (1) Section 4021 of the Employee Retirement Income Security 
     Act of 1974 (29 U.S.C. 1321) is amended--
       (A) in subsection (b)(9), by striking ``as defined in 
     section 4022(b)(6)'', and
       (B) by adding at the end the following new subsection:
       ``(d) For purposes of subsection (b)(9), the term 
     `substantial owner' means an individual who, at any time 
     during the 60-month period ending on the date the 
     determination is being made--
       ``(1) owns the entire interest in an unincorporated trade 
     or business,
       ``(2) in the case of a partnership, is a partner who owns, 
     directly or indirectly, more than 10 percent of either the 
     capital interest or the profits interest in such partnership, 
     or
       ``(3) in the case of a corporation, owns, directly or 
     indirectly, more than 10 percent in value of either the 
     voting stock of that corporation or all the stock of that 
     corporation.

     For purposes of paragraph (3), the constructive ownership 
     rules of section 1563(e) of the Internal Revenue Code of 1986 
     shall apply (determined without regard to section 
     1563(e)(3)(C)).''.
       (2) Section 4043(c)(7) of such Act (29 U.S.C. 1343(c)(7)) 
     is amended by striking ``section 4022(b)(6)'' and inserting 
     ``section 4021(d)''.
       (d) Effective Dates.--
       (1) In general.--Except as provided in paragraph (2), the 
     amendments made by this section shall apply to plan 
     terminations--
       (A) under section 4041(c) of the Employee Retirement Income 
     Security Act of 1974 (29 U.S.C. 1341(c)) with respect to 
     which notices of intent to terminate are provided under 
     section 4041(a)(2) of such Act (29 U.S.C. 1341(a)(2)) after 
     December 31, 2000, and
       (B) under section 4042 of such Act (29 U.S.C. 1342) with 
     respect to which proceedings are instituted by the 
     corporation after such date.
       (2) Conforming amendments.--The amendments made by 
     subsection (c) shall take effect on January 1, 2001.

     SEC. 906. MULTIEMPLOYER PLAN BENEFITS GUARANTEE.

       (a) In General.--Section 4022A(c) of the Employee 
     Retirement Income Security Act of 1974 (29 U.S.C. 1322A(c)) 
     is amended--
       (1) by striking ``$5'' each place it appears in paragraph 
     (1) and inserting ``$11'',
       (2) by striking ``$15'' in paragraph (1) and inserting 
     ``$33'', and
       (3) by striking paragraphs (2), (5), and (6) and by 
     redesignating paragraphs (3) and (4) as paragraphs (2) and 
     (3), respectively.
       (b) Conforming Amendment.--Section 4244(e)(4) of such Act 
     (29 U.S.C. 1424(e)(4)) is amended by striking ``and without 
     regard to section 4022A(c)(2)''.
       (c) Effective Date.--The amendments made by this section 
     shall apply to benefits payable after the date of the 
     enactment of this Act, except that such amendments shall not 
     apply to any multiemployer plan that has received financial 
     assistance (within the meaning of section 4261 of the 
     Employee Retirement Income Security Act of 1974) within the 
     1-year period ending on the date of the enactment of this 
     Act.

     SEC. 907. CIVIL PENALTIES FOR BREACH OF FIDUCIARY 
                   RESPONSIBILITY.

       (a) Imposition and Amount of Penalty Made Discretionary.--
     Section 502(l)(1) of the Employee Retirement Income Security 
     Act of 1974 (29 U.S.C. 1132(l)(1)) is amended--
       (1) by striking ``shall'' and inserting ``may'', and
       (2) by striking ``equal to'' and inserting ``not greater 
     than''.
       (b) Applicable Recovery Amount.--Section 502(l)(2) of such 
     Act (29 U.S.C. 1132(l)(2)) is amended to read as follows:
       ``(2) For purposes of paragraph (1), the term `applicable 
     recovery amount' means

[[Page S10097]]

     any amount which is recovered from any fiduciary or other 
     person (or from any other person on behalf of any such 
     fiduciary or other person) with respect to a breach or 
     violation described in paragraph (1) on or after the 30th day 
     following receipt by such fiduciary or other person of 
     written notice from the Secretary of the violation, whether 
     paid voluntarily or by order of a court in a judicial 
     proceeding instituted by the Secretary under subsection 
     (a)(2) or (a)(5). The Secretary may, in the Secretary's sole 
     discretion, extend the 30-day period described in the 
     preceding sentence.''.
       (c) Other Rules.--Section 502(l) of the Employee Retirement 
     Income Security Act of 1974 (29 U.S.C. 1132(l)) is amended by 
     adding at the end the following new paragraph:
       ``(5) A person shall be jointly and severally liable for 
     the penalty described in paragraph (1) to the same extent 
     that such person is jointly and severally liable for the 
     applicable recovery amount on which the penalty is based.
       ``(6) No penalty shall be assessed under this subsection 
     unless the person against whom the penalty is assessed is 
     given notice and opportunity for a hearing with respect to 
     the violation and applicable recovery amount.''.
       (d) Effective Dates.--
       (1) In general.--The amendments made by this section shall 
     apply to any breach of fiduciary responsibility or other 
     violation of part 4 of subtitle B of title I of the Employee 
     Retirement Income Security Act of 1974 occurring on or after 
     the date of enactment of this Act.
       (2) Transition rule.--In applying the amendment made by 
     subsection (b) (relating to applicable recovery amount), a 
     breach or other violation occurring before the date of 
     enactment of this Act which continues after the 180th day 
     after such date (and which may have been discontinued at any 
     time during its existence) shall be treated as having 
     occurred after such date of enactment.

     SEC. 908. BENEFIT SUSPENSION NOTICE.

       (a) Modification of Regulation.--The Secretary of Labor 
     shall modify the regulation under section 203(a)(3)(B) of the 
     Employee Retirement Income Security Act of 1974 (29 U.S.C. 
     1053(a)(3)(B)) to provide that the notification required by 
     such regulation--
       (1) in the case of an employee who returns to work for a 
     former employer after commencement of payment of benefits 
     under the plan, shall, if a reduced rate of future benefit 
     accruals could apply to the returning employee, include a 
     statement that the rate of future benefit accruals may be 
     reduced, and
       (2) in the case of any other employee--
       (A) may be included in the summary plan description for the 
     plan furnished in accordance with section 104(b) of such Act 
     (29 U.S.C. 1024(b)), rather than in a separate notice, and
       (B) need not include a copy of the relevant plan 
     provisions.
       (b) Effective Date.--The modification made under this 
     section shall apply to plan years beginning after December 
     31, 2000.

  Mr. JEFFORDS. Mr. President, I rise today to file an amendment on 
behalf of myself, as chairman of the Committee on Health, Education, 
Labor, and Pensions, and Mr. Kennedy, Ranking Member of the Committee 
to H.R. 1102, the Retirement Security and Savings Act of 2000, as 
reported by the Committee on Finance on September 12, 2000. Our 
amendment concerns pension issues within our jurisdiction. It would 
simplify and modify provisions of the Employee Retirement Income 
Security Act of 1974 relating to employer pension plans.
  More specifically, the amendment would expand the Pension Benefit 
Guaranty Corporation's (PBGC) Missing Participants program; reduce PBGC 
premiums for new plans of small employers; authorize the PBGC to pay 
interest on premium overpayment refunds; simplify the substantial owner 
benefit rules for terminated defined benefit plans; increase the PBGC 
guarantee of benefits in multiemployer plans; allow the Secretary of 
Labor to reduce or waive civil penalties for breach of fiduciary 
responsibility; make parties that are jointly and severally liable for 
fiduciary violations also jointly and severally liable for the related 
penalty; and improve and better target notices of benefit suspension to 
pension plan participants.
  Mr. President, I ask that our more detailed description of the 
amendment be entered into the Record.
  There being no objection, the material was ordered to be printed in 
the Record, as follows:

  Description of Amendment No. 4301 to the ``Retirement Security and 
                   Savings Act of 2000'' (H.R. 1102)


           1. extension of pbgc missing participants program

     Present law
       The plan administrator of a defined benefit pension plan 
     that is subject to Title IV of ERISA, is maintained by a 
     single employer, and terminates under a standard termination 
     is required to distribute the assets of the plan. With 
     respect to a participant whom the plan administrator cannot 
     locate after a diligent search, the plan administrator 
     satisfies the distribution requirement only by purchasing 
     irrevocable commitments from an insurer to provide all 
     benefit liabilities under the plan or transferring the 
     participant's designated benefit to the Pension Benefit 
     Guaranty Corporation (``PBGC''), which holds the benefit of 
     the missing participant as trustee until the PBGC locates the 
     missing participant and distributes the benefit. The PBGC 
     missing participant program is not available to multiemployer 
     plans or defined contribution plans and other plans not 
     covered by Title IV of ERISA.
     Reason for change
       Terminating multiemployer plans and terminating defined 
     contribution plans face the same problems with missing 
     participants as single-employer defined benefit plans. 
     Allowing terminating multiemployer and defined contribution 
     plans to transfer pension funds for missing participants to 
     the PBGC would enable these plans to wind up their affairs 
     and would increase the chances that missing participants will 
     be able to locate their benefits.
     Description of proposal
       The proposal would direct the PBGC to prescribe for 
     terminating multiemployer plans and terminating defined 
     contribution plans (including plans under section 401(k) of 
     the Internal Revenue Code) rules similar to the present-law 
     missing participant rules applicable to terminating single-
     employer plans that are subject to Title IV of ERISA.
     Effective date
       The proposal would be effective for distributions from 
     terminating plans that occur after the PBGC has adopted final 
     regulations implementing the proposal.


            2. reduce pbgc premiums for small and new plans

     Present law
       Under present law, the Pension Benefit Guaranty Corporation 
     (``PBGC'') provides insurance protection for participants and 
     beneficiaries under certain defined benefit pension plans by 
     guaranteeing certain basic benefits under the plan in the 
     event the plan is terminated with insufficient assets. The 
     guaranteed benefits are funded in part by premium payments 
     from employers who sponsor defined benefit plans.
       The amount of the required annual PBGC premium for a 
     single-employer plan is generally a flat rate premium of $19 
     per participant and an additional variable rate premium based 
     on a charge of $9 per $1,000 of unfunded vested benefits. 
     Unfunded vested benefits under a plan generally means (1) the 
     unfunded current liability for vested benefits under the 
     plan, over (2) the value of the plan's assets, reduced by any 
     credit balance in the funding standard account. No variable 
     rate premium is imposed for a year if contributions to the 
     plan were at least equal to the full funding limit. The PBGC 
     guarantee is phased in ratably in the case of plans that have 
     been in effect for less than 5 years, and with respect to 
     benefit increases from a plan amendment that was in effect 
     for less than 5 years before termination of the plan.
     Reason for change
       The number of single-employer defined benefit plans covered 
     by PBGC has declined dramatically in recent years--from 
     112,000 in 1985 to little over 39,000 in 1999. Most of the 
     decline is because of the termination of small plans. An 
     employer incurs a number of one-time costs to establish a 
     plan. The proposal is intended to remove the PBGC premium as 
     a disincentive to small employers establishing defined 
     benefit plans.
       For very small employers, the variable-rate premium can be 
     a disproportionately large and unpredictable cost and can 
     discourage them from establishing or maintaining a 
     defined benefit pension plan for their employees. Very 
     small employers would be more likely to establish and keep 
     defined benefit plans if they could be assured that the 
     variable rate premium would be affordable.
       While most of the decline in the number of defined benefit 
     plans is because of the termination of small plans, many 
     larger plans also have terminated. Further, larger employers 
     that establish plans are not choosing defined benefit plans.
       Incentives are needed to encourage establishment of defined 
     benefit plans by larger employers. The PBGC variable rate 
     premium can be a disincentive to some plans. The proposal 
     would provide a limited break from the variable rate premium, 
     keyed to PBGC's guarantee limits in the early years of a 
     plan.
     Description of proposal
       a. Reduced flat-rate premiums for new plans of small 
           employers
       Under the proposal, for each of the first five plan years 
     of a new single-employer plan of a small employer, the flat-
     rate PBGC premium would be $5 per plan participant. A small 
     employer would be defined as a plan contributing sponsor 
     that, together with other members of its controlled group, 
     employs 100 or fewer employees on the first day of the plan 
     year.
       Under ERISA, the ``employer'' consists of a plan's 
     ``contributing sponsor'' and all entities that are in 
     ``common control'' with it under the tax code. The 
     contributing sponsor together with the other entities in 
     common control are also referred to as members of the 
     ``controlled group.'' In the case of a plan to which more 
     than one unrelated contributing sponsor contributes, 
     employees of all

[[Page S10098]]

     contributing sponsors (and their controlled group members) 
     would be taken into account in determining whether the plan 
     is a plan of a small employer.)
       A new plan would mean a defined benefit plan maintained by 
     a contributing sponsor if, during the 36-month period ending 
     on the date of adoption of the plan, such contributing 
     sponsor (or controlled group member or a predecessor of 
     either) did not establish or maintain a plan subject to PBGC 
     coverage with respect to which benefits were accrued for 
     substantially the same employees as are in the new plan.
       b. Reduced variable PBGC premium for new and small employer 
           plans
       The proposal would provide that the variable premium is 
     phased in for ``new defined benefit plans'' over a six-year 
     period starting with the plan's first plan year. The amount 
     of the variable premium would be a percentage of the variable 
     premium otherwise due, as follows: 0 percent of the otherwise 
     applicable variable premium in the first plan year; 20 
     percent in the second plan year; 40 percent in the third plan 
     year; 60 percent in the fourth plan year; 80 percent in the 
     fifth plan year; and 100 percent in the sixth plan year (and 
     thereafter). A new defined benefit plan would be defined as 
     under the flat-rate premium proposal relating to new small 
     employer plans.
       In addition, in the case of any plan (not just a new plan) 
     of an employer with 25 or fewer employees, the per-
     participant variable-rate premium would be no more than $5 
     multiplied by the number of plan participants.
     Effective date
       The proposals relating to new plans would be effective for 
     plans established after December 31, 2000. The proposal 
     reducing the PBGC variable premium for small plans would be 
     effective for years after December 31, 2000.


   3. Authorization for PBGC to pay interest on premium overpayment 
                                refunds

     Present law
       The PBGC currently charges interest on underpayments but is 
     not authorized to pay interest to plan sponsors on refunds of 
     premium overpayments.
     Reason for change
       Premium payors should receive interest on monies that are 
     owed to them.
     Description of proposal
       The proposal would allow the PBGC to pay interest on 
     overpayments made by premium payors. Interest paid on 
     overpayments would be calculated at the same rate and in the 
     same manner as interest is charged on premium underpayments.
     Effective date
       The proposal would be effective with respect to refunds 
     made on or after the date of enactment of this Act.


      4. rules for substantial owner benefits in terminated plans

     Present law
       Under present law, the Pension Benefit Guaranty Corporation 
     (``PBGC'') provides participants and beneficiaries in a 
     defined benefit pension plan with certain minimal guarantees 
     as to the receipt of benefits under the plan in case of plan 
     termination. The employer sponsoring the defined benefit 
     pension plan is required to pay premiums to the PBGC to 
     provide insurance for the guaranteed benefits. In general, 
     PBGC will guarantee all basic benefits which are payable in 
     periodic installments for the life (or lives) of the 
     participant and his or her beneficiaries and are non-
     forfeitable at the time of plan termination. The amount of 
     the guaranteed benefit is subject to certain limitations. One 
     limitation is that the plan (or an amendment to the plan 
     which increases benefits) must be in effect for 60 months 
     before termination for the PBGC to guarantee the full amount 
     of basic benefits for a plan participant, other than a 
     substantial owner. In the case of a substantial owner, the 
     guaranteed basic benefit is phased in over 30 years beginning 
     with participation in the plan. A substantial owner is one 
     who owns, directly or indirectly, more than 10 percent of the 
     voting stock of a corporation. Special rules restricting the 
     amount of benefit guaranteed and the allocation of assets 
     also apply to substantial owners.
     Reason for change
       The special substantial owner rules are inordinately 
     complex and require plan documents going back as far as 30 
     years, which are difficult or impossible to obtain. The rules 
     penalize owners in plans that started out with modest benefit 
     levels and those with little control over plan decisions. 
     Changes are needed in the guarantee and asset allocation 
     rules to simplify determination of benefits and eliminate the 
     unduly harsh treatment of owners under the current law. The 
     proposed changes also will eliminate one of the reasons that 
     small business owners give for not establishing defined 
     benefit plans (i.e., the inadequacy of PBGC guarantees for 
     owners).
     Description of proposal
       The proposal would provide that the 60-month phase-in of 
     guaranteed benefits would apply to a substantial owner with 
     less than 50 percent ownership interest. For a substantial 
     owner with a 50 percent of more ownership interest 
     (``majority owner''), the guarantee would depend on the 
     number of years the plan has been in effect and would not be 
     more than the amount guaranteed for other participants. 
     Specifically, a majority owner's guarantee would be computed 
     by multiplying the guarantee that would apply if the 
     participant were not a substantial owner, by a fraction (not 
     to exceed 1), the numerator of which is the number of years 
     the plan was in effect, and the denominator of which is 10. 
     The rules regarding allocation of assets would apply to 
     substantial owners, other than majority owners, in the same 
     manner as other participants.
     Effective date
       The proposal would be effective for plan terminations with 
     respect to which notices of intent to terminate are provided, 
     or for which proceedings for termination are instituted by 
     the PBGC after December 31, 2000.


               5. multiemployer plan benefits guaranteed

     Present law
       The PBGC guarantees benefits of workers in multiemployer 
     plans. The monthly guarantee is equal to the participant's 
     years of service multiplied by the sum of (i) 100 percent of 
     the first $5 of the monthly benefit accrual rate, and (ii) 75 
     percent of the next $15 of the accrual rate. The level of 
     benefits guaranteed by the PBGC under the multiemployer 
     program is modest and has not increased since 1980. For a 
     retiree with 30 years of service, the maximum guaranteed 
     annual benefit if $5,850. The maximum guarantee under the 
     PBGC's single-employer program is adjusted each year to 
     reflect changes in the social security wage index.
     Reason for change
       The level of benefits guaranteed by the PBGC under the 
     multiemployer program is modest and has not increased since 
     1980.
     Description of proposal
       The proposal adjusts the amount guaranteed in multiemployer 
     plans to account for changes in the social security wage 
     index since 1980. Under the proposal, the PBGC would 
     guarantee a monthly benefit equal to the participant's years 
     of service multiplied by the sum of (i) 100 percent of the 
     first $11 of the monthly benefit accrual rate, and (ii) 75 
     percent of the next $33 of the accrual rate. The proposed 
     change would increase the maximum annual guarantee for a 
     retiree with 30 years of service to $12,870.
     Effective date
       The proposal would be effective for benefits payable after 
     the date of enactment of this Act, excluding benefits payable 
     under a multiemployer plan that received assistance payments 
     from the PBGC during the one-year period ending on the date 
     of enactment of this Act.


       6. Civil penalties for breach of fiduciary responsibility

     Current law
       Section 502(1) was added to ERISA by the Omnibus Budget 
     Reconciliation Act of 1989. In its current form, section 
     502(1) requires the Secretary of Labor to assess a civil 
     penalty against a fiduciary who breaches a fiduciary 
     responsibility under, or commits a violation of, Part 4 of 
     Title I of ERISA, or any other person who knowingly 
     participates in such a breach or violation. The penalty is a 
     flat 20 percent of the ``applicable recovery amount'' that is 
     paid pursuant to a settlement agreement with the Secretary or 
     that a court orders to be paid in a judicial proceeding 
     brought by the Secretary to enforce ERISA's fiduciary 
     responsibility provisions. The Secretary may waive or reduce 
     the penalty only if the Secretary finds in writing that 
     either (1) the violator acted reasonably and in good faith, 
     or (2) it is reasonable to expect that the violator cannot 
     restore all the losses without severe financial hardship 
     unless the waiver or reduction is granted.
     Reson for change
       Since its enactment, the section 502(1) penalty provision 
     has discouraged voluntary, prompt settlements of fiduciary 
     violations with the Department of Labor. This is because the 
     Secretary of Labor was given little authority to reduce or 
     waive the penalty in order to encourage prompt settlements 
     with violators. Moreover, administration of the provision 
     often raises difficult questions concerning whether a 
     particular payment to a plan was made pursuant to a 
     settlement agreement.
     Description of proposal
       The proposal would remove the current disincentive to 
     settlement and encourage parties to quickly settle claims of 
     violations that the Department brings to their attention. The 
     proposal would give the Secretary of Labor full discretion to 
     reduce or waive the penalty, and no penalty would be assessed 
     on any amount recovered by a plan or by a participant or 
     beneficiary within 30 days after the violator receives 
     written notice of the violation from the Department of Labor. 
     The Secretary would be given authority to extend the 30-day 
     grace period.
       The proposal would make all persons who are jointly and 
     severally liable for a violation also jointly and severally 
     liable for the penalty. The proposal also would clarify that 
     the term ``applicable recovery amount'' includes payments by 
     third parties that are made on behalf of the violator. This 
     change would prevent avoidance of the penalty by having an 
     unrelated third party pay the recovery amount.
       Finally, when a penalty is contested, the proposal would 
     give Administrative Law Judges the authority to decide both 
     the existence of the underlying violation and the applicable 
     recovery amount. This provision

[[Page S10099]]

     would apply to any breach of fiduciary responsibility or 
     other violation of Part 4 of Title I of ERISA occurring on or 
     after enactment.
     Effective date
       (a) General effective date. The proposal would apply to any 
     breach of fiduciary responsibility or other violation of part 
     4 of subtitle B of title I of the Employee Retirement Income 
     Security Act of 1974 occurring on or after the date of 
     enactment of this Act.
       (b) Transition rule. Fiduciaries would have six months from 
     the date of enactment to undo continuing violations without 
     application of the amendments. Thereafter, all such 
     violations would be treated as having begun after the 
     effective date of the amendments for purposes of determining 
     the applicable recovery amount.


                      7. Benefit suspension notice

     Current law
       Pension plans must provide a ``Benefit Suspension Notice'' 
     to retirees who have been receiving a pension who then decide 
     to return to work for that same employer. These same notices 
     are sent to employees who continue to work past normal 
     retirement age. The plan must provide this notice during the 
     first calendar month or payroll period after the employee 
     reaches normal retirement age or the plan risks losing its 
     tax exempt status.
     Reason for change
       The loss of tax exempt status is an excessive penalty for 
     failure to give a notice to employees reaching normal 
     retirement age. These ``Benefit Suspension Notices'' are 
     often regarded by employees who choose to continue to work 
     past normal retirement age either as a sign that the employer 
     is trying to force them into retirement or as a notice that 
     somehow the pension plan is being suspended. In either case, 
     for the employee who continues to work, and does not expect 
     to receive a pension, these notices are often cause for 
     alarm. The benefit ``suspension'' notice for benefit payments 
     that have not yet begun is irrational and should be 
     discontinued.
       Benefit Suspension Notices sent to retirees who return to 
     work for their previous employer do not currently alert these 
     workers to reductions in the rate of benefit accruals that 
     may now apply to them because they are working past normal 
     retirement age, the plan has been amended or terminated, or 
     for other reasons. As a result, these workers may not be 
     prepared for these lower accrual rates (or no accruals in the 
     case of a terminated plan).
     Description of proposal
       The proposal would require that ``Benefit Suspension 
     Notices'' be sent only to those pension plan beneficiaries 
     who return to the workforce. Benefit Suspension Notices sent 
     to a retiree returning to work for a previous employer, must 
     include a statement that the rate of future benefit accruals 
     may be reduced, if a reduced accrual rate could apply to the 
     returning worker.
     Effective date
       The proposal would apply to plan years beginning after 
     December 31, 2000.
                                 ______
                                 

   SECURE RURAL SCHOOLS AND COMMUNITY SELF-DETERMINATION ACT OF 1999

                                 ______
                                 

                  WYDEN (AND CRAIG) AMENDMENT NO. 4302

  Mr HAGEL (for Mr. Wyden (for himself and Mr. Craig)) proposed an 
amendment to the bill (H.R. 2389) to restore stability and 
predictability to the annual payments made to States and counties 
containing National Forest System lands and public domain lands managed 
by the Bureau of Land Management for use by the counties for the 
benefit of public schools, roads, and other purposes; as follows:

       Strike all after the enacting clause and insert the 
     following:

     SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

       (a) Short Title.--This Act may be cited as the ``Secure 
     Rural Schools and Community Self-Determination Act of 2000''.
       (b) Table of Contents.--The table of contents of this Act 
     is as follows:

Sec. 1. Short title; table of contents.
Sec. 2. Findings and purposes.
Sec. 3. Definitions.
Sec. 4. Conforming amendment.

  TITLE I--SECURE PAYMENTS FOR STATES AND COUNTIES CONTAINING FEDERAL 
                                 LANDS

Sec. 101. Determination of full payment amount for eligible States and 
              counties.
Sec. 102. Payments to States from National Forest Service lands for use 
              by counties to benefit public education and 
              transportation.
Sec. 103. Payments to counties from Bureau of Land Management lands for 
              use to benefit public safety, law enforcement, education, 
              and other public purposes.

              TITLE II--SPECIAL PROJECTS ON FEDERAL LANDS

Sec. 201. Definitions.
Sec. 202. General limitation on use of project funds.
Sec. 203. Submission of project proposals.
Sec. 204. Evaluation and approval of projects by Secretary concerned.
Sec. 205. Resource advisory committees.
Sec. 206. Use of project funds.
Sec. 207. Availability of project funds.
Sec. 208. Termination of authority.

                       TITLE III--COUNTY PROJECTS

Sec. 301. Definitions.
Sec. 302. Use of county funds.
Sec. 303. Termination of authority.

                   TITLE IV--MISCELLANEOUS PROVISIONS

Sec. 401. Authorization of appropriations.
Sec. 402. Treatment of funds and revenues.
Sec. 403. Regulations.
Sec. 404. Conforming amendments.

            TITLE V--MINERAL REVENUE PAYMENTS CLARIFICATION

Sec. 501. Short title.
Sec. 502. Findings.
Sec. 503. Amendment of the Mineral Leasing Act.

     SEC. 2. FINDINGS AND PURPOSES.

       (a) Findings.--The Congress finds the following:
       (1) The National Forest System, which is managed by the 
     United States Forest Service, was established in 1907 and has 
     grown to include approximately 192,000,000 acres of Federal 
     lands.
       (2) The public domain lands known as revested Oregon and 
     California Railroad grant lands and the reconveyed Coos Bay 
     Wagon Road grant lands, which are managed predominantly by 
     the Bureau of Land Management were returned to Federal 
     ownership in 1916 and 1919 and now comprise approximately 
     2,600,000 acres of Federal lands.
       (3) Congress recognized that, by its decision to secure 
     these lands in Federal ownership, the counties in which these 
     lands are situated would be deprived of revenues they would 
     otherwise receive if the lands were held in private 
     ownership.
       (4) These same counties have expended public funds year 
     after year to provide services, such as education, road 
     construction and maintenance, search and rescue, law 
     enforcement, waste removal, and fire protection, that 
     directly benefit these Federal lands and people who use these 
     lands.
       (5) To accord a measure of compensation to the affected 
     counties for the critical services they provide to both 
     county residents and visitors to these Federal lands, 
     Congress determined that the Federal Government should share 
     with these counties a portion of the revenues the United 
     States receives from these Federal lands.
       (6) Congress enacted in 1908 and subsequently amended a law 
     that requires that 25 percent of the revenues derived from 
     National Forest System lands be paid to States for use by the 
     counties in which the lands are situated for the benefit of 
     public schools and roads.
       (7) Congress enacted in 1937 and subsequently amended a law 
     that requires that 75 percent of the revenues derived from 
     the revested and reconveyed grant lands be paid to the 
     counties in which those lands are situated to be used as are 
     other county funds, of which 50 percent is to be used as 
     other county funds.
       (8) For several decades primarily due to the growth of the 
     Federal timber sale program, counties dependent on and 
     supportive of these Federal lands received and relied on 
     increasing shares of these revenues to provide funding for 
     schools and road maintenance.
       (9) In recent years, the principal source of these 
     revenues, Federal timber sales, has been sharply curtailed 
     and, as the volume of timber sold annually from most of the 
     Federal lands has decreased precipitously, so too have the 
     revenues shared with the affected counties.
       (10) This decline in shared revenues has affected 
     educational funding and road maintenance for many counties.
       (11) In the Omnibus Budget Reconciliation Act of 1993, 
     Congress recognized this trend and ameliorated its adverse 
     consequences by providing an alternative annual safety net 
     payment to 72 counties in Oregon, Washington, and northern 
     California in which Federal timber sales had been restricted 
     or prohibited by administrative and judicial decisions to 
     protect the northern spotted owl.
       (12) The authority for these particular safety net payments 
     is expiring and no comparable authority has been granted for 
     alternative payments to counties elsewhere in the United 
     States that have suffered similar losses in shared revenues 
     from the Federal lands and in the funding for schools and 
     roads those revenues provide.
       (13) There is a need to stabilize education and road 
     maintenance funding through predictable payments to the 
     affected counties, job creation in those counties, and other 
     opportunities associated with restoration, maintenance, and 
     stewardship of Federal lands.
       (14) Both the Forest Service and the Bureau of Land 
     Management face significant backlogs in infrastructure 
     maintenance and ecosystem restoration that are difficult to 
     address through annual appropriations.
       (15) There is a need to build new, and strengthen existing, 
     relationships and to improve management of public lands and 
     waters.
       (b) Purposes.--The purposes of this Act are as follows:
       (1) To stabilize payments to counties to provide funding 
     for schools and roads that supplements other available funds.

[[Page S10100]]

       (2) To make additional investments in, and create 
     additional employment opportunities through, projects that 
     improve the maintenance of existing infrastructure, implement 
     stewardship objectives that enhance forest ecosystems, and 
     restore and improve land health and water quality. Such 
     projects shall enjoy broad-based support with objectives that 
     may include, but are not limited to--
       (A) road, trail, and infrastructure maintenance or 
     obliteration;
       (B) soil productivity improvement;
       (C) improvements in forest ecosystem health;
       (D) watershed restoration and maintenance;
       (E) restoration, maintenance and improvement of wildlife 
     and fish habitat;
       (F) control of noxious and exotic weeds; and
       (G) reestablishment of native species.
       (3) To improve cooperative relationships among the people 
     that use and care for Federal lands and the agencies that 
     manage these lands.

     SEC. 3. DEFINITIONS.

       In this Act:
       (1) Federal lands.--The term ``Federal lands'' means--
       (A) lands within the National Forest System, as defined in 
     section 11(a) of the Forest and Rangeland Renewable Resources 
     Planning Act of 1974 (16 U.S.C. 1609(a)) exclusive of the 
     National Grasslands and land utilization projects designated 
     as National Grasslands administered pursuant to the Act of 
     July 22, 1937 (7 U.S.C. 1010-1012); and
       (B) such portions of the revested Oregon and California 
     Railroad and reconveyed Coos Bay Wagon Road grant lands as 
     are or may hereafter come under the jurisdiction of the 
     Department of the Interior, which have heretofore or may 
     hereafter be classified as timberlands, and power-site lands 
     valuable for timber, that shall be managed, except as 
     provided in the former section 3 of the Act of August 28, 
     1937 (50 Stat. 875; 43 U.S.C. 1181c), for permanent forest 
     production.
       (2) Eligibility period.--The term ``eligibility period'' 
     means fiscal year 1986 through fiscal year 1999.
       (3) Eligible county.--The term ``eligible county'' means a 
     county that received 50-percent payments for one or more 
     fiscal years of the eligibility period or a county that 
     received a portion of an eligible State's 25-percent payments 
     for one or more fiscal years of the eligibility period. The 
     term includes a county established after the date of the 
     enactment of this Act so long as the county includes all or a 
     portion of a county described in the preceding sentence.
       (4) Eligible state.--The term ``eligible State'' means a 
     State that received 25-percent payments for one or more 
     fiscal years of the eligibility period.
       (5) Full payment amount.--The term ``full payment amount'' 
     means the amount calculated for each eligible State and 
     eligible county under section 101.
       (6) 25-percent payment.--The term ``25-percent payment'' 
     means the payment to States required by the sixth paragraph 
     under the heading of ``FOREST SERVICE'' in the Act of May 23, 
     1908 (35 Stat. 260; 16 U.S.C. 500), and section 13 of the Act 
     of March 1, 1911 (36 Stat. 963; 16 U.S.C. 500).
       (7) 50-percent payment.--The term ``50-percent payment'' 
     means the payment that is the sum of the 50-percent share 
     otherwise paid to a county pursuant to title II of the Act of 
     August 28, 1937 (chapter 876; 50 Stat. 875; 43 U.S.C. 1181f), 
     and the payment made to a county pursuant to the Act of May 
     24, 1939 (chapter 144; 53 Stat. 753; 43 U.S.C. 1181f-1 et 
     seq.).
       (8) Safety net payments.--The term ``safety net payments'' 
     means the special payment amounts paid to States and counties 
     required by section 13982 or 13983 of the Omnibus Budget 
     Reconciliation Act of 1993 (Public Law 103-66; 16 U.S.C. 500 
     note; 43 U.S.C. 1181f note).

     SEC. 4. CONFORMING AMENDMENT.

       Section 6903(a)(1)(C) of title 31, United States Code, is 
     amended by inserting after ``(16 U.S.C. 500)'' the following: 
     ``or the Secure Rural Schools and Community Self-
     Determination Act of 2000''.

  TITLE I--SECURE PAYMENTS FOR STATES AND COUNTIES CONTAINING FEDERAL 
                                 LANDS

     SEC. 101. DETERMINATION OF FULL PAYMENT AMOUNT FOR ELIGIBLE 
                   STATES AND COUNTIES.

       (a) Calculation Required.--
       (1) Eligible states.--For fiscal years 2001 through 2006, 
     the Secretary of the Treasury shall calculate for each 
     eligible State that received a 25-percent payment during the 
     eligibility period an amount equal to the average of the 
     three highest 25-percent payments and safety net payments 
     made to that eligible State for the fiscal years of the 
     eligibility period.
       (2) Bureau of land management counties.--For fiscal years 
     2001 through 2006, the Secretary of the Treasury shall 
     calculate for each eligible county that received a 50-percent 
     payment during the eligibility period an amount equal to the 
     average of the three highest 50-percent payments and safety 
     net payments made to that eligible county for the fiscal 
     years of the eligibility period.
       (b) Annual Adjustment.--For each fiscal year in which 
     payments are required to be made to eligible States and 
     eligible counties under this title, the Secretary of the 
     Treasury shall adjust the full payment amount for the 
     previous fiscal year for each eligible State and eligible 
     county to reflect 50 percent of the changes in the consumer 
     price index for rural areas (as published in the Bureau of 
     Labor Statistics) that occur after publication of that index 
     for fiscal year 2000.

     SEC. 102. PAYMENTS TO STATES FROM NATIONAL FOREST SYSTEM 
                   LANDS FOR USE BY COUNTIES TO BENEFIT PUBLIC 
                   EDUCATION AND TRANSPORTATION.

       (a) Payment Amounts.--The Secretary of the Treasury shall 
     pay an eligible State the sum of the amounts elected under 
     subsection (b) by each eligible county for either--
       (1) the 25-percent payment under the Act of May 23, 1908 
     (16 U.S.C. 500), and section 13 of the Act of March 1, 1911 
     (16 U.S.C. 500); or
       (2) the full payment amount in place of the 25-percent 
     payment.
       (b) Election To Receive Payment Amount.--
       (1) Election; submission of results.--The election to 
     receive either the full payment amount or the 25-percent 
     payment shall be made at the discretion of each affected 
     county and transmitted to the Secretary by the Governor of a 
     State.
       (2) Duration of election.--A county election to receive the 
     25-percent payment shall be effective for two fiscal years. 
     When a county elects to receive the full payment amount, such 
     election shall be effective for all the subsequent fiscal 
     years through fiscal year 2006.
       (3) Source of payment amounts.--The payment to an eligible 
     State under this section for a fiscal year shall be derived 
     from any revenues, fees, penalties, or miscellaneous 
     receipts, exclusive of deposits to any relevant trust fund, 
     or special accounts, received by the Federal Government from 
     activities by the Forest Service on the Federal lands 
     described in section 3(1)(A) and to the extent of any 
     shortfall, out of any funds in the Treasury not otherwise 
     appropriated.
       (c) Distribution and Expenditure of Payments.--
       (1) Distribution method.--A State that receives a payment 
     under subsection (a) shall distribute the payment among all 
     eligible counties in the State in accordance with the Act of 
     May 23, 1908 (16 U.S.C. 500), and section 13 of the Act of 
     March 1, 1911 (36 Stat. 963; 16 U.S.C. 500).
       (2) Expenditure purposes.--Subject to subsection (d), 
     payments received by a State under subsection (a) and 
     distributed to eligible counties shall be expended as 
     required by the laws referred to in paragraph (1).
       (d) Expenditure Rules for Eligible Counties.--
       (1) Allocations.--
       (A) Use of portion in same manner as 25-percent payments.--
     If an eligible county elects to receive its share of the full 
     payment amount, not less than 80 percent, but not more than 
     85 percent, of the funds shall be expended in the same manner 
     in which the 25-percent payments are required to be expended.
       (B) Election as to use of balance.--An eligible county 
     shall elect to do one or more of the following with the 
     balance of the funds not expended pursuant to subparagraph 
     (A):
       (i) Reserve the balance for projects in accordance with 
     title II.
       (ii) Reserve the balance for projects in accordance with 
     title III.
       (iii) Return the balance to the General Treasury in 
     accordance with section 402(b).
       (2) Distribution of funds.--
       (A) Treatment of title ii funds.--Funds reserved by an 
     eligible county under paragraph (1)(B)(i) shall be deposited 
     in a special account in the Treasury of the United States and 
     shall be available for expenditure by the Secretary of 
     Agriculture, without further appropriation, and shall remain 
     available until expended in accordance with title II.
       (B) Treatment of title iii funds.--Funds reserved by an 
     eligible county under paragraph (1)(B)(ii) shall be available 
     for expenditure by the county and shall remain available, 
     until expended, in accordance with title III.
       (3) Election.--
       (A) In general.--An eligible county shall notify the 
     Secretary of Agriculture of its election under this 
     subsection not later than September 30 of each fiscal year. 
     If the eligible county fails to make an election by that 
     date, the county is deemed to have elected to expend 85 
     percent of the funds to be received under this section in the 
     same manner in which the 25-percent payments are required to 
     be expended, and shall remit the balance to the Treasury of 
     the United States in accordance with section 402(b).
       (B) Counties with minor distributions.--Notwithstanding any 
     adjustment made pursuant to section 101(b) in the case of 
     each eligible county to which less than $100,000 is 
     distributed for any fiscal year pursuant to subsection 
     (c)(1), the eligible county may elect to expend all such 
     funds in accordance with subsection (c)(2).
       (e) Time for Payment.--The payment to an eligible State 
     under this section for a fiscal year shall be made as soon as 
     practicable after the end of that fiscal year.

     SEC. 103. PAYMENTS TO COUNTIES FROM BUREAU OF LAND MANAGEMENT 
                   LANDS FOR USE TO BENEFIT PUBLIC SAFETY, LAW 
                   ENFORCEMENT, EDUCATION, AND OTHER PUBLIC 
                   PURPOSES.

       (a) Payment.--The Secretary of the Treasury shall pay an 
     eligible county either--
       (1) the 50-percent payment under the Act of August 28, 1937 
     (43 U.S.C. 1181f), or the Act of May 24, 1939 (43 U.S.C. 
     1181f-1) as appropriate; or
       (2) the full payment amount in place of the 50-percent 
     payment.

[[Page S10101]]

       (b) Election To Receive Full Payment Amount.--
       (1) Election; duration.--The election to receive the full 
     payment amount shall be made at the discretion of the county. 
     Once the election is made, it shall be effective for the 
     fiscal year in which the election is made and all subsequent 
     fiscal years through fiscal year 2006.
       (2) Source of payment amounts.--The payment to an eligible 
     county under this section for a fiscal year shall be derived 
     from any revenues, fees, penalties, or miscellaneous 
     receipts, exclusive of deposits to any relevant trust fund, 
     or permanent operating funds, received by the Federal 
     Government from activities by the Bureau of Land Management 
     on the Federal lands described in section 3(1)(B) and to the 
     extent of any shortfall, out of any funds in the Treasury not 
     otherwise appropriated.
       (c) Expenditure Rules for Eligible Counties.--
       (1) Allocations.--
       (A) Use of portion in same manner as 50-percent payments.--
     Of the funds to be paid to an eligible county pursuant to 
     subsection (a)(2), not less than 80 percent, but not more 
     than 85 percent, of the funds distributed to the eligible 
     county shall be expended in the same manner in which the 50-
     percent payments are required to be expended.
       (B) Election as to use of balance.--An eligible county 
     shall elect to do one or more of the following with the 
     balance of the funds not expended pursuant to subparagraph 
     (A):
       (i) Reserve the balance for projects in accordance with 
     title II.
       (ii) Reserve the balance for projects in accordance with 
     title III.
       (iii) Return the balance to the General Treasury in 
     accordance with section 402(b).
       (2) Distribution of funds.--
       (A) Treatment of title ii funds.--Funds reserved by an 
     eligible county under paragraph (1)(B)(i) shall be deposited 
     in a special account in the Treasury of the United States and 
     shall be available for expenditure by the Secretary of the 
     Interior, without further appropriation, and shall remain 
     available until expended in accordance with title II.
       (B) Treatment of title iii funds.--Funds reserved by an 
     eligible county under paragraph (1)(B)(ii) shall be available 
     for expenditure by the county and shall remain available, 
     until expended, in accordance with title III.
       (3) Election.--An eligible county shall notify the 
     Secretary of the Interior of its election under this 
     subsection not later than September 30 of each fiscal year. 
     If the eligible county fails to make an election by that 
     date, the county is deemed to have elected to expend 85 
     percent of the funds received under subsection (a)(2) in the 
     same manner in which the 50-percent payments are required to 
     be expended and shall remit the balance to the Treasury of 
     the United States in accordance with section 402(b).
       (d) Time for Payment.--The payment to an eligible county 
     under this section for a fiscal year shall be made as soon as 
     practicable after the end of that fiscal year.

              TITLE II--SPECIAL PROJECTS ON FEDERAL LANDS

     SEC. 201. DEFINITIONS.

       In this title:
       (1) Participating county.--The term ``participating 
     county'' means an eligible county that elects under section 
     102(d)(1)(B)(i) or 103(c)(1)(B)(i) to expend a portion of the 
     Federal funds received under section 102 or 103 in accordance 
     with this title.
       (2) Project funds.--The term ``project funds'' means all 
     funds an eligible county elects under sections 
     102(d)(1)(B)(i) and 103(c)(1)(B)(i) to reserve for 
     expenditure in accordance with this title.
       (3) Resource advisory committee.--The term ``resource 
     advisory committee'' means an advisory committee established 
     by the Secretary concerned under section 205, or determined 
     by the Secretary concerned to meet the requirements of 
     section 205.
       (4) Resource management plan.--The term ``resource 
     management plan'' means a land use plan prepared by the 
     Bureau of Land Management for units of the Federal lands 
     described in section 3(1)(B) pursuant to section 202 of the 
     Federal Land Policy and Management Act of 1976 (43 U.S.C. 
     1712) or a land and resource management plan prepared by the 
     Forest Service for units of the National Forest System 
     pursuant to section 6 of the Forest and Rangeland Renewable 
     Resources Planning Act of 1974 (16 U.S.C. 1604).
       (5) Secretary concerned.--The term ``Secretary concerned'' 
     means--
       (A) the Secretary of Agriculture or the designee of the 
     Secretary of Agriculture with respect to the Federal lands 
     described in section 3(1)(A); and
       (B) the Secretary of the Interior or the designee of the 
     Secretary of the Interior with respect to the Federal lands 
     described in section 3(1)(B).

     SEC. 202. GENERAL LIMITATION ON USE OF PROJECT FUNDS.

       Project funds shall be expended solely on projects that 
     meet the requirements of this title. Project funds may be 
     used by the Secretary concerned for the purpose of entering 
     into and implementing cooperative agreements with willing 
     Federal agencies, State and local governments, private and 
     nonprofit entities, and landowners for protection, 
     restoration and enhancement of fish and wildlife habitat, and 
     other resource objectives consistent with the purposes of 
     this title on Federal land and on non-Federal land where 
     projects would benefit these resources on Federal land.

     SEC. 203. SUBMISSION OF PROJECT PROPOSALS.

       (a) Submission of Project Proposals to Secretary 
     Concerned.--
       (1) Projects funded using project funds.--Not later than 
     September 30 for fiscal year 2001, and each September 30 
     thereafter for each succeeding fiscal year through fiscal 
     year 2006, each resource advisory committee shall submit to 
     the Secretary concerned a description of any projects that 
     the resource advisory committee proposes the Secretary 
     undertake using any project funds reserved by eligible 
     counties in the area in which the resource advisory committee 
     has geographic jurisdiction.
       (2) Projects funded using other funds.--A resource advisory 
     committee may submit to the Secretary concerned a description 
     of any projects that the committee proposes the Secretary 
     undertake using funds from State or local governments, or 
     from the private sector, other than project funds and funds 
     appropriated and otherwise available to do similar work.
       (3) Joint projects.--Participating counties or other 
     persons may propose to pool project funds or other funds, 
     described in paragraph (2), and jointly propose a project or 
     group of projects to a resource advisory committee 
     established under section 205.
       (b) Required Description of Projects.--In submitting 
     proposed projects to the Secretary concerned under subsection 
     (a), a resource advisory committee shall include in the 
     description of each proposed project the following 
     information:
       (1) The purpose of the project and a description of how the 
     project will meet the purposes of this Act.
       (2) The anticipated duration of the project.
       (3) The anticipated cost of the project.
       (4) The proposed source of funding for the project, whether 
     project funds or other funds.
       (5) Expected outcomes, including how the project will meet 
     or exceed desired ecological conditions, maintenance 
     objectives, or stewardship objectives, as well as an 
     estimation of the amount of any timber, forage, and other 
     commodities and other economic activity, including jobs 
     generated, if any, anticipated as part of the project.
       (6) A detailed monitoring plan, including funding needs and 
     sources, that tracks and identifies the positive or negative 
     impacts of the project, implementation, and provides for 
     validation monitoring. The monitoring plan shall include an 
     assessment of the following: Whether or not the project met 
     or exceeded desired ecological conditions; created local 
     employment or training opportunities, including summer youth 
     jobs programs such as the Youth Conservation Corps where 
     appropriate; and whether the project improved the use of, or 
     added value to, any products removed from lands consistent 
     with the purposes of this Act.
       (7) An assessment that the project is to be in the public 
     interest.
       (c) Authorized Projects.--Projects proposed under 
     subsection (a) shall be consistent with section 2(b).

     SEC. 204. EVALUATION AND APPROVAL OF PROJECTS BY SECRETARY 
                   CONCERNED.

       (a) Conditions for Approval of Proposed Project.--The 
     Secretary concerned may make a decision to approve a project 
     submitted by a resource advisory committee under section 203 
     only if the proposed project satisfies each of the following 
     conditions:
       (1) The project complies with all applicable Federal laws 
     and regulations.
       (2) The project is consistent with the applicable resource 
     management plan and with any watershed or subsequent plan 
     developed pursuant to the resource management plan and 
     approved by the Secretary concerned.
       (3) The project has been approved by the resource advisory 
     committee in accordance with section 205, including the 
     procedures issued under subsection (e) of such section.
       (4) A project description has been submitted by the 
     resource advisory committee to the Secretary concerned in 
     accordance with section 203.
       (5) The project will improve the maintenance of existing 
     infrastructure, implement stewardship objectives that enhance 
     forest ecosystems, and restore and improve land health and 
     water quality.
       (b) Environmental Reviews.--
       (1) Payment of review costs.--
       (A) Request for payment by county.--The Secretary concerned 
     may request the resource advisory committee submitting a 
     proposed project to agree to the use of project funds to pay 
     for any environmental review, consultation, or compliance 
     with applicable environmental laws required in connection 
     with the project. When such a payment is requested and the 
     resource advisory committee agrees to the expenditure of 
     funds for this purpose, the Secretary concerned shall conduct 
     environmental review, consultation, or other compliance 
     responsibilities in accordance with Federal law and 
     regulations.
       (B) Effect of refusal to pay.--If a resource advisory 
     committee does not agree to the expenditure of funds under 
     subparagraph (A), the project shall be deemed withdrawn from 
     further consideration by the Secretary concerned pursuant to 
     this title. Such a withdrawal shall be deemed to be a 
     rejection of the project for purposes of section 207(c).
       (c) Decisions of Secretary Concerned.--
       (1) Rejection of projects.--A decision by the Secretary 
     concerned to reject a proposed

[[Page S10102]]

     project shall be at the Secretary's sole discretion. 
     Notwithstanding any other provision of law, a decision by the 
     Secretary concerned to reject a proposed project shall not be 
     subject to administrative appeal or judicial review. Within 
     30 days after making the rejection decision, the Secretary 
     concerned shall notify in writing the resource advisory 
     committee that submitted the proposed project of the 
     rejection and the reasons for rejection.
       (2) Notice of project approval.--The Secretary concerned 
     shall publish in the Federal Register notice of each project 
     approved under subsection (a) if such notice would be 
     required had the project originated with the Secretary.
       (d) Source and Conduct of Project.--Once the Secretary 
     concerned accepts a project for review under section 203, it 
     shall be deemed a Federal action for all purposes.
       (e) Implementation of Approved Projects.--
       (1) Cooperation.--Notwithstanding chapter 63 of title 31, 
     United States Code, using project funds the Secretary 
     concerned may enter into contracts, grants, and cooperative 
     agreements with States and local governments, private and 
     nonprofit entities, and landowners and other persons to 
     assist the Secretary in carrying out an approved project.
       (2) Best value contracting.--For any project involving a 
     contract authorized by paragraph (1) the Secretary concerned 
     may elect a source for performance of the contract on a best 
     value basis. The Secretary concerned shall determine best 
     value based on such factors as:
       (A) The technical demands and complexity of the work to be 
     done.
       (B) The ecological objectives of the project and the 
     sensitivity of the resources being treated.
       (C) The past experience by the contractor with the type of 
     work being done, using the type of equipment proposed for the 
     project, and meeting or exceeding desired ecological 
     conditions.
       (D) The commitment of the contractor to hiring highly 
     qualified workers and local residents.
       (3) Merchantable material contracting pilot program.--
       (A) Establishment.--The Secretary concerned shall establish 
     a pilot program to implement a certain percentage of approved 
     projects involving the sale of merchantable material using 
     separate contracts for--
       (i) the harvesting or collection of merchantable material; 
     and
       (ii) the sale of such material.
       (B) Annual percentages.--Under the pilot program, the 
     Secretary concerned shall ensure that, on a nationwide basis, 
     not less than the following percentage of all approved 
     projects involving the sale merchantable material are 
     implemented using separate contracts:
       (i) For fiscal year 2001, 15 percent.
       (ii) For fiscal year 2002, 25 percent.
       (iii) For fiscal year 2003, 25 percent.
       (iv) For fiscal year 2004, 50 percent.
       (v) For fiscal year 2005, 50 percent.
       (vi) For fiscal year 2006, 50 percent.
       (C) Inclusion in pilot program.--The decision whether to 
     use separate contracts to implement a project involving the 
     sale of merchantable material shall be made by the Secretary 
     concerned after the approval of the project under this title.
       (D) Assistance.--The Secretary concerned may use funds from 
     any appropriated account available to the Secretary for the 
     Federal lands to assist in the administration of projects 
     conducted under the pilot program. The total amount obligated 
     under this subparagraph may not exceed $1,000,000 for any 
     fiscal year during which the pilot program is in effect.
       (E) Review and report.--Not later than September 30, 2003, 
     the Comptroller General shall submit to the Committee on 
     Agriculture, Nutrition, and Forestry of the Senate, the 
     Committee on Energy and Natural Resources of the Senate, the 
     Committee on Agriculture of the House of Representatives, and 
     the Committee on Resources of the House of Representatives a 
     report assessing the pilot program. The Secretary concerned 
     shall submit to such committees an annual report describing 
     the results of the pilot program.
       (f) Requirements for Project Funds.--The Secretary shall 
     ensure that at least 50 percent of all project funds be used 
     for projects that are primarily dedicated--
       (1) to road maintenance, decommissioning, or obliteration; 
     or
       (2) to restoration of streams and watersheds.

     SEC. 205. RESOURCE ADVISORY COMMITTEES.

       (a) Establishment and Purpose of Resource Advisory 
     Committees.--
       (1) Establishment.--The Secretary concerned shall establish 
     and maintain resource advisory committees to perform the 
     duties in subsection (b), except as provided in paragraph 
     (4).
       (2) Purpose.--The purpose of a resource advisory committee 
     shall be to improve collaborative relationships and to 
     provide advice and recommendations to the land management 
     agencies consistent with the purposes of this Act.
       (3) Access to resource advisory committees.--To ensure that 
     each unit of Federal land has access to a resource advisory 
     committee, and that there is sufficient interest in 
     participation on a committee to ensure that membership can be 
     balanced in terms of the points of view represented and the 
     functions to be performed, the Secretary concerned may, 
     establish resource advisory committees for part of, or one or 
     more, units of Federal lands.
       (4) Existing advisory committees.--Existing advisory 
     committees meeting the requirements of this section may be 
     deemed by the Secretary concerned, as a resource advisory 
     committee for the purposes of this title. The Secretary of 
     the Interior may deem a resource advisory committee meeting 
     the requirements of subpart 1784 of part 1780 of title 43, 
     Code of Federal Regulations, as a resource advisory committee 
     for the purposes of this title.
       (b) Duties.--A resource advisory committee shall--
       (1) review projects proposed under this title by 
     participating counties and other persons;
       (2) propose projects and funding to the Secretary concerned 
     under section 203;
       (3) provide early and continuous coordination with 
     appropriate land management agency officials in recommending 
     projects consistent with purposes of this Act under this 
     title; and
       (4) provide frequent opportunities for citizens, 
     organizations, tribes, land management agencies, and other 
     interested parties to participate openly and meaningfully, 
     beginning at the early stages of the project development 
     process under this title.
       (c) Appointment by the Secretary.--
       (1) Appointment and term.--The Secretary concerned, shall 
     appoint the members of resource advisory committees for a 
     term of 3 years beginning on the date of appointment. The 
     Secretary concerned may reappoint members to subsequent 3-
     year terms.
       (2) Basic requirements.--The Secretary concerned shall 
     ensure that each resource advisory committee established 
     meets the requirements of subsection (d).
       (3) Initial appointment.--The Secretary concerned shall 
     make initial appointments to the resource advisory committees 
     not later than 180 days after the date of the enactment of 
     this Act.
       (4) Vacancies.--The Secretary concerned shall make 
     appointments to fill vacancies on any resource advisory 
     committee as soon as practicable after the vacancy has 
     occurred.
       (5) Compensation.--Members of the resource advisory 
     committees shall not receive any compensation.
       (d) Composition of Advisory Committee.--
       (1) Number.--Each resource advisory committee shall be 
     comprised of 15 members.
       (2) Community interests represented.--Committee members 
     shall be representative of the interests of the following 
     three categories:
       (A) 5 persons who--
       (i) represent organized labor;
       (ii) represent developed outdoor recreation, off highway 
     vehicle users, or commercial recreation activities;
       (iii) represent energy and mineral development interests;
       (iv) represent the commercial timber industry; or
       (v) hold Federal grazing permits, or other land use permits 
     within the area for which the committee is organized.
       (B) 5 persons representing--
       (i) nationally recognized environmental organizations;
       (ii) regionally or locally recognized environmental 
     organizations;
       (iii) dispersed recreational activities;
       (iv) archaeological and historical interests; or
       (v) nationally or regionally recognized wild horse and 
     burro interest groups.
       (C) 5 persons who--
       (i) hold State elected office or their designee;
       (ii) hold county or local elected office;
       (iii) represent American Indian tribes within or adjacent 
     to the area for which the committee is organized;
       (iv) are school officials or teachers; or
       (v) represent the affected public at large.
       (3) Balanced representation.--In appointing committee 
     members from the three categories in paragraph (2), the 
     Secretary concerned shall provide for balanced and broad 
     representation from within each category.
       (4) Geographic distribution.--The members of a resource 
     advisory committee shall reside within the State in which the 
     committee has jurisdiction and, to extent practicable, the 
     Secretary concerned shall ensure local representation in each 
     category in paragraph (2).
       (5) Chairperson.--A majority on each resource advisory 
     committee shall select the chairperson of the committee.
       (e) Approval Procedures.--(1) Subject to paragraph (2), 
     each resource advisory committee shall establish procedures 
     for proposing projects to the Secretary concerned under this 
     title. A quorum must be present to constitute an official 
     meeting of the committee.
       (2) A project may be proposed by a resource advisory 
     committee to the Secretary concerned under section 203(a), if 
     it has been approved by a majority of members of the 
     committee from each of the three categories in subsection 
     (d)(2).
       (f) Other Committee Authorities and Requirements.--
       (1) Staff assistance.--A resource advisory committee may 
     submit to the Secretary concerned a request for periodic 
     staff assistance from Federal employees under the 
     jurisdiction of the Secretary.
       (2) Meetings.--All meetings of a resource advisory 
     committee shall be announced at

[[Page S10103]]

     least one week in advance in a local newspaper of record and 
     shall be open to the public.
       (3) Records.--A resource advisory committee shall maintain 
     records of the meetings of the committee and make the records 
     available for public inspection.

     SEC. 206. USE OF PROJECT FUNDS.

       (a) Agreement Regarding Schedule and Cost of Project.--
       (1) Agreement between parties.--The Secretary concerned may 
     carry out a project submitted by a resource advisory 
     committee under section 203(a) using project funds or other 
     funds described in section 203(a)(2), if, as soon as 
     practicable after the issuance of a decision document for the 
     project and the exhaustion of all administrative appeals and 
     judicial review of the project decision, the Secretary 
     concerned and the resource advisory committee enter into an 
     agreement addressing, at a minimum, the following:
       (A) The schedule for completing the project.
       (B) The total cost of the project, including the level of 
     agency overhead to be assessed against the project.
       (C) For a multiyear project, the estimated cost of the 
     project for each of the fiscal years in which it will be 
     carried out.
       (D) The remedies for failure of the Secretary concerned to 
     comply with the terms of the agreement consistent with 
     current Federal law.
       (2) Limited use of federal funds.--The Secretary concerned 
     may decide, at the Secretary's sole discretion, to cover the 
     costs of a portion of an approved project using Federal funds 
     appropriated or otherwise available to the Secretary for the 
     same purposes as the project.
       (b) Transfer of Project Funds.--
       (1) Initial transfer required.--As soon as practicable 
     after the agreement is reached under subsection (a) with 
     regard to a project to be funded in whole or in part using 
     project funds, or other funds described in section 203(a)(2), 
     the Secretary concerned shall transfer to the applicable unit 
     of National Forest System lands or BLM District an amount of 
     project funds equal to--
       (A) in the case of a project to be completed in a single 
     fiscal year, the total amount specified in the agreement to 
     be paid using project funds, or other funds described in 
     section 203(a)(2); or
       (B) in the case of a multiyear project, the amount 
     specified in the agreement to be paid using project funds, or 
     other funds described in section 203(a)(2) for the first 
     fiscal year.
       (2) Condition on project commencement.--The unit of 
     National Forest System lands or BLM District concerned, shall 
     not commence a project until the project funds, or other 
     funds described in section 203(a)(2) required to be 
     transferred under paragraph (1) for the project, have been 
     made available by the Secretary concerned.
       (3) Subsequent transfers for multiyear projects.--For the 
     second and subsequent fiscal years of a multiyear project to 
     be funded in whole or in part using project funds, the unit 
     of National Forest System lands or BLM District concerned 
     shall use the amount of project funds required to continue 
     the project in that fiscal year according to the agreement 
     entered into under subsection (a). The Secretary concerned 
     shall suspend work on the project if the project funds 
     required by the agreement in the second and subsequent fiscal 
     years are not available.

     SEC. 207. AVAILABILITY OF PROJECT FUNDS.

       (a) Submission of Proposed Projects To Obligate Funds.--By 
     September 30 of each fiscal year through fiscal year 2006, a 
     resource advisory committee shall submit to the Secretary 
     concerned pursuant to section 203(a)(1) a sufficient number 
     of project proposals that, if approved, would result in the 
     obligation of at least the full amount of the project funds 
     reserved by the participating county in the preceding fiscal 
     year.
       (b) Use or Transfer of Unobligated Funds.--Subject to 
     section 208, if a resource advisory committee fails to comply 
     with subsection (a) for a fiscal year, any project funds 
     reserved by the participating county in the preceding fiscal 
     year and remaining unobligated shall be available for use as 
     part of the project submissions in the next fiscal year.
       (c) Effect of Rejection of Projects.--Subject to section 
     208, any project funds reserved by a participating county in 
     the preceding fiscal year that are unobligated at the end of 
     a fiscal year because the Secretary concerned has rejected 
     one or more proposed projects shall be available for use as 
     part of the project submissions in the next fiscal year.
       (d) Effect of Court Orders.--If an approved project under 
     this Act is enjoined or prohibited by a Federal court, the 
     Secretary concerned shall return the unobligated project 
     funds related to that project to the participating county or 
     counties that reserved the funds. The returned funds shall be 
     available for the county to expend in the same manner as the 
     funds reserved by the county under section 102(d)(1)(B)(i) or 
     103(c)(1)(B)(i), whichever applies to the funds involved.

     SEC. 208. TERMINATION OF AUTHORITY.

       The authority to initiate projects under this title shall 
     terminate on September 30, 2006. Any project funds not 
     obligated by September 30, 2007, shall be deposited in the 
     Treasury of the United States.

                       TITLE III--COUNTY PROJECTS

     SEC. 301. DEFINITIONS.

       In this title:
       (1) Participating county.--The term ``participating 
     county'' means an eligible county that elects under section 
     102(d)(1)(B)(ii) or 103(c)(1)(B)(ii) to expend a portion of 
     the Federal funds received under section 102 or 103 in 
     accordance with this title.
       (2) County funds.--The term ``county funds'' means all 
     funds an eligible county elects under sections 
     102(d)(1)(B)(ii) and 103(c)(1)(B)(ii) to reserve for 
     expenditure in accordance with this title.

     SEC. 302. USE OF COUNTY FUNDS.

       (a) Limitation on County Fund Use.--County funds shall be 
     expended solely on projects that meet the requirements of 
     this title. A project under this title shall be approved by 
     the participating county only following a 45-day public 
     comment period, at the beginning of which the county shall--
       (1) publish a description of the proposed project in the 
     publications of local record; and
       (2) send the proposed project to the appropriate resource 
     advisory committee established under section 205, if one 
     exists for the county.
       (b) Authorized Uses.--
       (1) Search, rescue, and emergency services.--An eligible 
     county or applicable sheriff's department may use these funds 
     as reimbursement for search and rescue and other emergency 
     services, including fire fighting, performed on Federal lands 
     and paid for by the county.
       (2) Community service work camps.--An eligible county may 
     use these funds as reimbursement for all or part of the costs 
     incurred by the county to pay the salaries and benefits of 
     county employees who supervise adults or juveniles performing 
     mandatory community service on Federal lands.
       (3) Easement purchases.--An eligible county may use these 
     funds to acquire--
       (A) easements, on a willing seller basis, to provide for 
     nonmotorized access to public lands for hunting, fishing, and 
     other recreational purposes;
       (B) conservation easements; or
       (C) both.
       (4) Forest related educational opportunities.--A county may 
     use these funds to establish and conduct forest-related after 
     school programs.
       (5) Fire prevention and county planning.--A county may use 
     these funds for--
       (A) efforts to educate homeowners in fire-sensitive 
     ecosystems about the consequences of wildfires and techniques 
     in home siting, home construction, and home landscaping that 
     can increase the protection of people and property from 
     wildfires; and
       (B) planning efforts to reduce or mitigate the impact of 
     development on adjacent Federal lands and to increase the 
     protection of people and property from wildfires.
       (6) Community forestry.--A county may use these funds 
     towards non-Federal cost-share requirements of section 9 of 
     the Cooperative Forestry Assistance Act of 1978 (16 U.S.C. 
     2105).

     SEC. 303. TERMINATION OF AUTHORITY.

       The authority to initiate projects under this title shall 
     terminate on September 30, 2006. Any county funds not 
     obligated by September 30, 2007 shall be available to be 
     expended by the county for the uses identified in section 
     302(b).

                   TITLE IV--MISCELLANEOUS PROVISIONS

     SEC. 401. AUTHORIZATION OF APPROPRIATIONS.

       There are hereby authorized to be appropriated such sums as 
     may be necessary to carry out this Act for fiscal years 2001 
     through 2006.

     SEC. 402. TREATMENT OF FUNDS AND REVENUES.

       (a) Relation to Other Appropriations.--Funds appropriated 
     pursuant to the authorization of appropriations in section 
     401 and funds made available to a Secretary concerned under 
     section 206 shall be in addition to any other annual 
     appropriations for the Forest Service and the Bureau of Land 
     Management.
       (b) Deposit of Revenues and Other Funds.--All revenues 
     generated from projects pursuant to title II, any funds 
     remitted by counties pursuant to section 102(d)(1)(B)(iii) or 
     section 103(c)(1)(B)(iii), and any interest accrued from such 
     funds shall be deposited in the Treasury of the United 
     States.

     SEC. 403. REGULATIONS.

       The Secretaries concerned may jointly issue regulations to 
     carry out the purposes of this Act.

     SEC. 404. CONFORMING AMENDMENTS.

       Sections 13982 and 13983 of the Omnibus Budget 
     Reconciliation Act of 1993 (Public Law 103-66; 16 U.S.C. 500 
     note; 43 U.S.C. 1181f note) are repealed.

            TITLE V--MINERAL REVENUE PAYMENTS CLARIFICATION

     SEC. 501. SHORT TITLE.

       This title may be cited as the ``Mineral Revenue Payments 
     Clarification Act of 2000''.

     SEC. 502. FINDINGS.

       The Congress finds the following:
       (1) Section 10201 of the Omnibus Budget Reconciliation Act 
     of 1993 (Public Law 103-66; 107 Stat. 407) amended section 35 
     of the Mineral Leasing Act (30 U.S.C. 191) to change the 
     sharing of onshore mineral revenues and revenues from 
     geothermal steam from a 50:50 split between the Federal 
     Government and the States to a complicated formula that 
     entailed deducting from the State share of leasing revenues 
     ``50 percent of the portion of the enacted appropriations of 
     the Department of the Interior and any other agency

[[Page S10104]]

     during the preceding fiscal year allocable to the 
     administration of all laws providing for the leasing of any 
     onshore lands or interest in land owned by the United States 
     for the production of the same types of minerals leasable 
     under this Act or of geothermal steam, and to enforcement of 
     such laws . . .''.
       (2) There is no legislative record to suggest a sound 
     public policy rationale for deducting prior-year 
     administrative expenses from the sharing of current-year 
     receipts, indicating that this change was made primarily for 
     budget scoring reasons.
       (3) The system put in place by this change in law has 
     proved difficult to administer and has given rise to disputes 
     between the Federal Government and the States as to the 
     nature of allocable expenses. Federal accounting systems have 
     proven to be poorly suited to breaking down administrative 
     costs in the manner required by the law. Different Federal 
     agencies implementing this law have used varying 
     methodologies to identify allocable costs, resulting in an 
     inequitable distribution of costs during fiscal years 1994 
     through 1996. In November 1997, the Inspector General of the 
     Department of the Interior found that ``the congressionally 
     approved method for cost sharing deductions effective in 
     fiscal year 1997 may not accurately compute the deductions''.
       (4) Given the lack of a substantive rationale for the 1993 
     change in law and the complexity and administrative burden 
     involved, a return to the sharing formula prior to the 
     enactment of the Omnibus Budget Reconciliation Act of 1993 is 
     justified.

     SEC. 503. AMENDMENT OF THE MINERAL LEASING ACT.

       Section 35(b) of the Mineral Leasing Act (30 U.S.C. 191(b)) 
     is amended to read as follows:
       ``(b) In determining the amount of payments to the States 
     under this section, the amount of such payments shall not be 
     reduced by any administrative or other costs incurred by the 
     United States.''.

                 TITLE VI--COMMUNITY FOREST RESTORATION

     SECTION 601. SHORT TITLE.

       This title may be cited as the ``Community Forest 
     Restoration Act''.

     SEC. 602. FINDINGS.

       The Congress finds the following:
       (1) A century of fire suppression, logging, and livestock 
     grazing has altered the ecological balance of New Mexico's 
     forests.
       (2) Some forest lands in New Mexico contain an unnaturally 
     high number of small diameter trees that are subject to 
     large, high intensity wildfires that can endanger human 
     lives, livelihoods, and ecological stability.
       (3) Forest lands that contain an unnaturally high number of 
     small diameter trees have reduced biodiversity and provide 
     fewer benefits to human communities, wildlife, and 
     watersheds.
       (4) Healthy and productive watersheds minimize the threat 
     of large, high intensity wildfires, provide abundant and 
     diverse wildlife habitat, and produce a variety of timber and 
     non-timber products including better quality water and 
     increased water flows.
       (5) Restoration efforts are more successful when there is 
     involvement from neighboring communities and better 
     stewardship will evolve from more diverse involvement.
       (6) Designing demonstration restoration projects through a 
     collaborative approach may--
       (A) lead to the development of cost effective restoration 
     activities;
       (B) empower diverse organizations to implement activities 
     which value local and traditional knowledge;
       (c) build ownership and civil pride; and
       (D) ensure healthy, diverse, and productive forests and 
     watersheds.

     SEC. 603. PURPOSES.

       The purposes of this title are--
       (1) to promote healthy watersheds and reduced the threat of 
     large, high intensity wildfires, insect infestation, and 
     disease in the forests in New Mexico;
       (2) to improve the functioning of forest ecosystems and 
     enhance plant and wildlife biodiversity by reducing the 
     unnaturally high number and density of small diameter trees 
     on Federal, Tribal, State, County, and Municipal, forest 
     lands;
       (3) to improve communication and joint problem solving 
     among individuals and groups who are interested in restoring 
     the diversity and productivity of forested watersheds in New 
     Mexico;
       (4) to improve the use of, or add value to, small diameter 
     trees;
       (5) to encourage sustainable communities and sustainable 
     forests through collaborative partnerships whose objectives 
     are forest restoration; and
       (6) to develop, demonstrate, and evaluate ecologically 
     sound forest restoration techniques.

     SEC. 604. DEFINITIONS.

       As used in this title--
       (1) the term `Secretary' means the Secretary of Agriculture 
     acting through the Chief of the Forest Service; and
       (2) the term `stakeholder' includes: tribal governments, 
     educational institutions, landowners, and other interested 
     public and private entities.

     SEC. 605. ESTABLISHMENT OF PROGRAM.

       (a) The Secretary shall establish a cooperative forest 
     restoration program in New Mexico in order to provide cost-
     share grants to stakeholders for experimental forest 
     restoration projects that are designed through a 
     collaborative process (hereinafter referred to as the 
     `Collaborative Forest Restoration Program'). The projects may 
     be entirely on, or on any combination of, Federal, Tribal, 
     State, County, or Municipal forest lands. The Federal share 
     of an individual project cost shall not exceed eighty percent 
     of the total costs. The twenty percent matching may be in the 
     form of cash or in-kind contribution.
       (b) Eligibility Requirements.--To be eligible to receive 
     funding under this title, a project shall--
       (1) address the following objectives--
       (A) reduce the threat of large, high intensity wildfires 
     and the negative effects of excessive competition between 
     trees by restoring ecosystem functions, structures, and 
     species composition, including the reduction of non-native 
     species populations;
       (B) re-establish fire regimes approximating those that 
     shaped forest ecosystems prior to fire suppression;
       (C) preserve old and large trees;
       (D) replant trees in deforested areas if they exist in the 
     proposed project area; and
       (E) improve the use of, or add value to, small diameter 
     trees;
       (2) comply with all Federal and State environmental laws;
       (3) include a diverse and balanced group of stakeholders as 
     well as appropriate Federal, Tribal, State County, and 
     Municipal government representatives in the design, 
     implemention, and monitoring of the project;
       (4) incorporate current scientific forest restoration 
     information; and
       (5) include a multi-party assessment to--
       (A) identify both the existing ecological condition of the 
     proposed project area and the desired future condition; and
       (B) report, upon project completion, on the positive or 
     negative impact and effectiveness of the project including 
     improvements in local management skills and on the ground 
     results;
       (6) create local employment or training opportunities 
     within the context of accomplishing restoration objectives, 
     that are consistent with the purposes of this title, 
     including summer youth jobs programs such as the Youth 
     Conservation Corps where appropriate;
       (7) not exceed four years in length;
       (8) not exceed a total annual cost of $150,000, with the 
     Federal portion not exceeding $120,000 annually, nor exceed a 
     total cost of $450,000 for the project, with the Federal 
     portion of the total cost not exceeding $360,000;
       (9) leverage Federal funding through in-kind or matching 
     contributions; and
       (10) include an agreement by each stakeholder to attend an 
     annual workshop with other stakeholders for the purpose of 
     discussing the cooperative forest restoration program and 
     projects implemented under this title. The Secretary shall 
     coordinate and fund the annual workshop. Stakeholders may use 
     funding for projects authorized under this title to pay for 
     their travel and per diem expenses to attend the workshop.

     SEC. 606. SELECTION PROCESS.

       (a) After consulting with the technical advisory panel 
     established in subsection (b), the Secretary shall select the 
     proposals that will receive funding through the Collaborative 
     Forest Restoration Program.
       (b) The Secretary shall convene a technical advisory panel 
     to evaluate the proposals for forest restoration grants and 
     provide recommendations regarding which proposals would best 
     meet the objectives of the Collaborative Forest Restoration 
     Program. The technical advisory panel shall consider 
     eligibility criteria established in section 605, the effect 
     on long term management, and seek to use a consensus-based 
     decision making process to develop such recommendations. The 
     panel shall be composed of 12 to 15 members, to be appointed 
     by the Secretary as follows:
       (1) A State Natural Resource official from the State of New 
     Mexico.
       (2) At least two representatives from Federal land 
     management agencies.
       (3) At least one tribal or pueblo representative.
       (4) At least two independent scientists with experience in 
     forest ecosystem restoration.
       (5) Equal representation from--
       (A) conservation interests;
       (B) local communities; and
       (C) commodity interests.

     SEC. 607. MONITORING AND EVALUATION.

       The Secretary shall establish a multi-party monitoring and 
     evaluation process in order to assess the cumulative 
     accomplishments or adverse impacts of the Collaborative 
     Forest Restoration Program. The Secretary shall include any 
     interested individual or organization in the monitoring and 
     evaluation process. The Secretary also shall conduct a 
     monitoring program to assess the short and long term 
     ecological effects of the restoration treatments, if any, or 
     a minimum of 15 years.

     SEC. 608. REPORT.

       No later than five years after the first fiscal year in 
     which funding is made available for this program, the 
     Secretary shall submit a report to the Committee on Energy 
     and Natural Resources of the United States Senate and the 
     Committee on Resources of the United States House of 
     Representatives. The report shall include an assessment on 
     whether, and to what extent, the projects funded pursuant to 
     this title are meeting the purposes of the Collaborative 
     Forest Restoration Program.

[[Page S10105]]

     SEC. 609. AUTHORIZATION OF APPROPRIATIONS.

       There are authorized to be appropriated $5,000,000 annually 
     to carry out this title.
                                 ______
                                 

                  COLORADO UTE SETTLEMENT ACT OF 2000

                                 ______
                                 

                CAMPBELL (AND ALLARD) AMENDMENT NO. 4303

  (Ordered to lie on the table.)
  Mr. CAMPBELL (for himself and Mr. Allard) submitted an amendment 
intended to be proposed by them to the bill (S. 2508) to amend the 
Colorado Ute Indian Water Rights Settlement Act of 1988 to provide for 
a final settlement of the claims of the Colorado Ute Indian Tribes, and 
for other purposes; as follows:

       Strike all after the enacting clause and insert the 
     following:

     SECTION 1. SHORT TITLE; FINDINGS; DEFINITIONS.

       (a) Short Title.--This Act may be cited as the ``Colorado 
     Ute Settlement Act Amendments of 2000''.
       (b) Findings.--Congress makes the following findings:
       (1) In order to provide for a full and final settlement of 
     the claims of the Colorado Ute Indian Tribes on the Animas 
     and La Plata Rivers, the Tribes, the State of Colorado, and 
     certain of the non-Indian parties to the Agreement have 
     proposed certain modifications to the Colorado Ute Indian 
     Water Rights Settlement Act of 1988 (Public Law 100-585; 102 
     Stat. 2973).
       (2) The claims of the Colorado Ute Indian Tribes on all 
     rivers in Colorado other than the Animas and La Plata Rivers 
     have been settled in accordance with the provisions of the 
     Colorado Ute Indian Water Rights Settlement Act of 1988 
     (Public Law 100-585; 102 Stat. 2973).
       (3) The Indian and non-Indian communities of southwest 
     Colorado and northwest New Mexico will be benefited by a 
     settlement of the tribal claims on the Animas and La Plata 
     Rivers that provides the Tribes with a firm water supply 
     without taking water away from existing uses.
       (4) The Agreement contemplated a specific timetable for the 
     delivery of irrigation and municipal and industrial water and 
     other benefits to the Tribes from the Animas-La Plata 
     Project, which timetable has not been met. The provision of 
     irrigation water can not presently be satisfied under the 
     current implementation of the Federal Water Pollution Control 
     Act (33 U.S.C. 1251 et seq.) and the Endangered Species Act 
     of 1973 (16 U.S.C. 1531 et seq.).
       (5) In order to meet the requirements of the Endangered 
     Species Act of 1973 (16 U.S.C. 1531 et seq.), and in 
     particular the various biological opinions issued by the Fish 
     and Wildlife Service, the amendments made by this Act are 
     needed to provide for a significant reduction in the 
     facilities and water supply contemplated under the Agreement.
       (6) The substitute benefits provided to the Tribes under 
     the amendments made by this Act, including the waiver of 
     capital costs and the provisions of funds for natural 
     resource enhancement, result in a settlement that provides 
     the Tribes with benefits that are equivalent to those that 
     the Tribes would have received under the Colorado Ute Indian 
     Water Rights Settlement Act of 1988 (Public Law 100-585; 102 
     Stat. 2973).
       (7) The requirement that the Secretary of the Interior 
     comply with the National Environmental Policy Act of 1969 (42 
     U.S.C. 4321 et seq.) and other national environmental laws 
     before implementing the proposed settlement will ensure that 
     the satisfaction of the tribal water rights is accomplished 
     in an environmentally responsible fashion.
       (8) In considering the full range of alternatives for 
     satisfying the water rights claims of the Southern Ute Indian 
     Tribe and Ute Mountain Ute Indian Tribe, Congress has held 
     numerous legislative hearings and deliberations, and reviewed 
     the considerable record including the following documents:
       (A) The Final EIS No. INT-FES-80-18, dated July 1, 1980.
       (B) The Draft Supplement to the FES No. INT-DES-92-41, 
     dated October 13, 1992.
       (C) The Final Supplemental to the FES No. 96-23, dated 
     April 26, 1996;
       (D) The Draft Supplemental EIS, dated January 14, 2000.
       (E) The Final Supplemental EIS, dated July 2000.
       (F) The Record of Decision for the Settlement of the 
     Colorado Ute Indian Waters, September 25, 2000.
       (9) In the Record of Decision referred to in paragraph 
     (8)(F), the Secretary determined that the preferred 
     alternative could only proceed if Congress amended the 
     Colorado Ute Indian Water Rights Settlement Act of 1988 
     (Public Law 100-585; 102 Stat. 2973) so as to satisfy the 
     Tribal water rights claim through the construction of the 
     features authorized by this Act. The amendments to the 
     Colorado Ute Indian Water Rights Settlement Act of 1988 set 
     forth in this Act will provide the Ute Tribes with substitute 
     benefits equivalent to those that the Tribes would have 
     received under the Colorado Ute Indian Water Rights 
     Settlement Act of 1988, in a manner consistent with paragraph 
     (8) and the Federal Government's trust obligation.
       (10) Based upon paragraph (8), it is the intent of Congress 
     to enact legislation that implements the Record of Decision 
     referred to in paragraph (8)(F).
       (c) Definitions.--In this Act:
       (1) Agreement.--The term ``Agreement'' has the meaning 
     given that term in section 3(1) of the Colorado Ute Indian 
     Water Rights Settlement Act of 1988 (Public Law 100-585; 102 
     Stat. 2973).
       (2) Animas-la plata project.--The term ``Animas-La Plata 
     Project'' has the meaning given that term in section 3(2) of 
     the Colorado Ute Indian Water Rights Settlement Act of 1988 
     (Public Law 100-585; 102 Stat. 2973).
       (3) Dolores project.--The term ``Dolores Project'' has the 
     meaning given that term in section 3(3) of the Colorado Ute 
     Indian Water Rights Settlement Act of 1988 (Public Law 100-
     585; 102 Stat. 2974).
       (4) Tribe; tribes.--The term ``Tribe'' or ``Tribes'' has 
     the meaning given that term in section 3(6) of the Colorado 
     Ute Indian Water Rights Settlement Act of 1988 (Public Law 
     100-585; 102 Stat. 2974).

     SEC. 2. AMENDMENTS TO SECTION 6 OF THE COLORADO UTE INDIAN 
                   WATER RIGHTS SETTLEMENT ACT OF 1988.

       Subsection (a) of section 6 of the Colorado Ute Indian 
     Water Rights Settlement Act of 1988 (Public Law 100-585; 102 
     Stat. 2975) is amended to read as follows:
       ``(a) Reservoir; Municipal and Industrial Water.--
       ``(1) Facilities.--
       ``(A) In general.--After the date of enactment of this 
     subsection, but prior to January 1, 2005, or the date 
     established in the Amended Final Decree described in section 
     18(c), the Secretary, in order to settle the outstanding 
     claims of the Tribes on the Animas and La Plata Rivers, 
     acting through the Bureau of Reclamation, is specifically 
     authorized to--
       ``(i) complete construction of, and operate and maintain, a 
     reservoir, a pumping plant, a reservoir inlet conduit, and 
     appurtenant facilities with sufficient capacity to divert and 
     store water from the Animas River to provide for an average 
     annual depletion of 57,100 acre-feet of water to be used for 
     a municipal and industrial water supply, which facilities 
     shall--

       ``(I) be designed and operated in accordance with the 
     hydrologic regime necessary for the recovery of the 
     endangered fish of the San Juan River as determined by the 
     San Juan River Recovery Implementation Program;
       ``(II) be operated in accordance with the Animas-La Plata 
     Project Compact as approved by Congress in Public Law 90-537;
       ``(III) include an inactive pool of an appropriate size to 
     be determined by the Secretary following the completion of 
     required environmental compliance activities; and
       ``(IV) include those recreation facilities determined to be 
     appropriate by agreement between the State of Colorado and 
     the Secretary that shall address the payment of any of the 
     costs of such facilities by the State of Colorado in addition 
     to the costs described in paragraph (3); and

       ``(ii) deliver, through the use of the project components 
     referred to in clause (i), municipal and industrial water 
     allocations--

       ``(I) with an average annual depletion not to exceed 16,525 
     acre-feet of water, to the Southern Ute Indian Tribe for its 
     present and future needs;
       ``(II) with an average annual depletion not to exceed 
     16,525 acre-feet of water, to the Ute Mountain Ute Indian 
     Tribe for its present and future needs;
       ``(III) with an average annual depletion not to exceed 
     2,340 acre-feet of water, to the Navajo Nation for its 
     present and future needs;
       ``(IV) with an average annual depletion not to exceed 
     10,400 acre-feet of water, to the San Juan Water Commission 
     for its present and future needs;
       ``(V) with an average annual depletion of an amount not to 
     exceed 2,600 acre-feet of water, to the Animas-La Plata 
     Conservancy District for its present and future needs;
       ``(VI) with an average annual depletion of an amount not to 
     exceed 5,230 acre-feet of water, to the State of Colorado for 
     its present and future needs; and
       ``(VII) with an average annual depletion of an amount not 
     to exceed 780 acre-feet of water, to the La Plata Conservancy 
     District of New Mexico for its present and future needs.

       ``(B) Applicability of other federal law.--The 
     responsibilities of the Secretary described in subparagraph 
     (A) are subject to the requirements of Federal laws related 
     to the protection of the environment and otherwise applicable 
     to the construction of the proposed facilities, including the 
     National Environmental Policy Act of 1969 (42 U.S.C. 4321 et 
     seq.), the Clean Water Act (42 U.S.C. 7401 et seq.), and the 
     Endangered Species Act of 1973 (16 U.S.C. 1531 et seq.). 
     Nothing in this Act shall be construed to predetermine or 
     otherwise affect the outcome of any analysis conducted by the 
     Secretary or any other Federal official under applicable 
     laws.
       ``(C) Limitation.--
       ``(i) In general.--If constructed, the facilities described 
     in subparagraph (A) shall constitute the Animas-La Plata 
     Project. Construction of any other project features 
     authorized by Public Law 90-537 shall not be commenced 
     without further express authorization from Congress.
       ``(ii) Contingency in application.--If the facilities 
     described in subparagraph (A) are not constructed and 
     operated, clause (i) shall not take effect.

[[Page S10106]]

       ``(2) Tribal construction costs.--Construction costs 
     allocable to the facilities that are required to deliver the 
     municipal and industrial water allocations described in 
     subclauses (I), (II) and (III) of paragraph (1)(A)(ii) shall 
     be nonreimbursable to the United States.
       ``(3) Nontribal water capital obligations.--
       ``(A) In general.--Under the provisions of section 9 of the 
     Act of August 4, 1939 (43 U.S.C. 485h), the nontribal 
     municipal and industrial water capital repayment obligations 
     for the facilities described in paragraph (1)(A)(i) may be 
     satisfied upon the payment in full of the nontribal water 
     capital obligations prior to the initiation of construction. 
     The amount of the obligations described in the preceding 
     sentence shall be determined by agreement between the 
     Secretary of the Interior and the entity responsible for such 
     repayment as to the appropriate reimbursable share of the 
     construction costs allocated to that entity's municipal water 
     storage. Such repayment shall be consistent with Federal 
     reclamation law, including the Colorado River Storage Project 
     Act of 1956 (43 U.S.C. 620 et seq.). Such agreement shall 
     take into account the fact that the construction of certain 
     project facilities, including those facilities required to 
     provide irrigation water supplies from the Animas-La Plata 
     Project, is not authorized under paragraph (1)(A)(i) and no 
     costs associated with the design or development of such 
     facilities, including costs associated with environmental 
     compliance, shall be allocable to the municipal and 
     industrial users of the facilities authorized under such 
     paragraph.
       ``(B) Nontribal repayment obligation subject to final cost 
     allocation.--The nontribal repayment obligation set forth in 
     subparagraph (A) shall be subject to a final cost allocation 
     by the Secretary upon project completion. In the event that 
     the final cost allocation indicates that additional repayment 
     is warranted based on the applicable entity's share of 
     project water storage and determination of overall 
     reimbursable cost, that entity may elect to enter into a new 
     agreement to make the additional payment necessary to secure 
     the full water supply identified in paragraph (1)(A)(ii). If 
     the repayment entity elects not to enter into a new 
     agreement, the portion of project storage relinquished by 
     such election shall be available to the Secretary for 
     allocation to other project purposes. Additional repayment 
     shall only be warranted for reasonable and unforeseen costs 
     associated with project construction as determined by the 
     Secretary in consultation with the relevant repayment 
     entities.
       ``(C) Report.--Not later than April 1, 2001, the Secretary 
     shall report to Congress on the status of the cost-share 
     agreements contemplated in subparagraph (A). In the event 
     that no agreement is reached with either the Animas-La Plata 
     Conservancy District or the State of Colorado for the water 
     allocations set forth in subclauses (V) and (VI) of paragraph 
     (1)(A)(ii), those allocations shall be reallocated equally to 
     the Colorado Ute Tribes.
       ``(4) Tribal water allocations.--
       ``(A) In general.--With respect to municipal and industrial 
     water allocated to a Tribe from the Animas-La Plata Project 
     or the Dolores Project, until that water is first used by a 
     Tribe or used pursuant to a water use contract with the 
     Tribe, the Secretary shall pay the annual operation, 
     maintenance, and replacement costs allocable to that 
     municipal and industrial water allocation of the Tribe.
       ``(B) Treatment of costs.--A Tribe shall not be required to 
     reimburse the Secretary for the payment of any cost referred 
     to in subparagraph (A).
       ``(5) Repayment of pro rata share.--Upon a Tribe's first 
     use of an increment of a municipal and industrial water 
     allocation described in paragraph (4), or the Tribe's first 
     use of such water pursuant to the terms of a water use 
     contract--
       ``(A) repayment of that increment's pro rata share of those 
     allocable construction costs for the Dolores Project shall be 
     made by the Tribe; and
       ``(B) the Tribe shall bear a pro rata share of the 
     allocable annual operation, maintenance, and replacement 
     costs of the increment as referred to in paragraph (4).''.

     SEC. 3. MISCELLANEOUS.

       The Colorado Ute Indian Water Rights Settlement Act of 1988 
     (Public Law 100-585; 102 Stat. 2973) is amended by adding at 
     the end the following:

     ``SEC. 15. NEW MEXICO AND NAVAJO NATION WATER
                   MATTERS.

       ``(a) Assignment of Water Permit.--Upon the request of the 
     State Engineer of the State of New Mexico, the Secretary 
     shall, as soon as practicable, in a manner consistent with 
     applicable law, assign, without consideration, to the New 
     Mexico Animas-La Plata Project beneficiaries or to the New 
     Mexico Interstate Stream Commission in accordance with the 
     request of the State Engineer, the Department of the 
     Interior's interest in New Mexico State Engineer Permit 
     Number 2883, dated May 1, 1956, in order to fulfill the New 
     Mexico non-Navajo purposes of the Animas-La Plata Project, so 
     long as the permit assignment does not affect the application 
     of the Endangered Species Act of 1973 (16 U.S.C. 1531 et 
     seq.) to the use of the water involved.
       ``(b) Navajo Nation Municipal Pipeline.--The Secretary is 
     specifically authorized to construct a water line to augment 
     the existing system that conveys the municipal water 
     supplies, in an amount not less than 4,680 acre-feet per 
     year, to the Navajo Indian Reservation at or near Shiprock, 
     New Mexico. The Secretary shall comply with all applicable 
     environmental laws with respect to such water line. 
     Construction costs allocated to the Navajo Nation for such 
     water line shall be nonreimbursable to the United States.
       ``(c) Protection of Navajo Water Claims.--Nothing in this 
     Act, including the permit assignment authorized by subsection 
     (a), shall be construed to quantify or otherwise adversely 
     affect the water rights and the claims of entitlement to 
     water of the Navajo Nation.

     ``SEC. 16. RESOURCE FUNDS.

       ``(a) Authorization of Appropriations.--There is authorized 
     to be appropriated to carry out this section, $8,000,000 for 
     each of fiscal years 2002 through 2006. Not later than 60 
     days after amounts are appropriated and available to the 
     Secretary for a fiscal year under this paragraph, the 
     Secretary shall make a payment to each of the Tribal Resource 
     Funds established under subsection (b). Each such payment 
     shall be equal to 50 percent of the amount appropriated for 
     the fiscal year involved.
       ``(b) Funds.--The Secretary shall establish a--
       ``(1) Southern Ute Tribal Resource Fund; and
       ``(2) Ute Mountain Ute Tribal Resource Fund.
       ``(c) Tribal Development.--
       ``(1) Investment.--The Secretary shall, in the absence of 
     an approved tribal investment plan provided for under 
     paragraph (2), invest the amount in each Tribal Resource Fund 
     established under subsection (b) in accordance with the Act 
     entitled, `An Act to authorize the deposit and investment of 
     Indian funds' approved June 24, 1938 (25 U.S.C. 162a). With 
     the exception of the funds referred to in paragraph 
     (3)(B)(i), the Secretary shall disburse, at the request of a 
     Tribe, the principal and income in its Resource Fund, or any 
     part thereof, in accordance with a resource acquisition and 
     enhancement plan approved under paragraph (3).
       ``(2) Investment plan.--
       ``(A) In general.--In lieu of the investment provided for 
     in paragraph (1), a Tribe may submit a tribal investment plan 
     applicable to all or part of the Tribe's Tribal Resource 
     Fund, except with respect to the funds referred to in 
     paragraph (3)(B)(i).
       ``(B) Approval.--Not later than 60 days after the date on 
     which an investment plan is submitted under subparagraph (A), 
     the Secretary shall approve such investment plan if the 
     Secretary finds that the plan is reasonable and sound. If the 
     Secretary does not approve such investment plan, the 
     Secretary shall set forth in writing and with particularity 
     the reasons for such disapproval. If such investment plan is 
     approved by the Secretary, the Tribal Resource Fund involved 
     shall be disbursed to the Tribe to be invested by the Tribe 
     in accordance with the approved investment plan, subject to 
     subsection (d).
       ``(C) Compliance.--The Secretary may take such steps as the 
     Secretary determines to be necessary to monitor the 
     compliance of a Tribe with an investment plan approved under 
     subparagraph (B). The United States shall not be responsible 
     for the review, approval, or audit of any individual 
     investment under the plan. The United States shall not be 
     directly or indirectly liable with respect to any such 
     investment, including any act or omission of the Tribe in 
     managing or investing such funds.
       ``(D) Economic development plan.--The principal and income 
     derived from tribal investments under an investment plan 
     approved under subparagraph (B) shall be subject to the 
     provisions of this section and shall be expended only in 
     accordance with an economic development plan approved under 
     paragraph (3)(B).
       ``(3) Economic development plan.--
       ``(A) In general.--Each Tribe shall submit to the Secretary 
     a resource acquisition and enhancement plan for all or any 
     portion of its Tribal Resource Fund.
       ``(B) Approval.--Not later than 60 days after the date on 
     which a plan is submitted under subparagraph (A), the 
     Secretary shall approve such plan if it is consistent with 
     the following requirements:
       ``(i) With respect to at least \3/4\ of the funds 
     appropriated pursuant to this section and consistent with the 
     long-standing practice of the Tribes and other local entities 
     and communities to work together to use their respective 
     water rights and resources for mutual benefit, at least \3/4\ 
     of the funds appropriated pursuant to this section shall be 
     utilized to enhance, restore, and utilize the Tribes' natural 
     resources in partnership with adjacent non-Indian communities 
     or entities in the area.
       ``(ii) The plan must be reasonably related to the 
     protection, acquisition, enhancement, or development of 
     natural resources for the benefit of the Tribe and its 
     members.
       ``(iii) Notwithstanding any other provision of law and in 
     order to ensure that the Federal Government fulfills the 
     objectives of the Record of Decision referred to in section 
     1(b)(8)(F) of the Colorado Ute Settlement Act Amendments of 
     2000 by requiring that the funds referred to in clause (i) 
     are expended directly by employees of the Federal Government, 
     the Secretary acting through the Bureau of Reclamation shall 
     expend not less than \1/3\ of the funds referred to in clause 
     (i) for municipal or rural water development and not less 
     than \2/3\ of the funds referred to

[[Page S10107]]

     such clause for resource acquisition and enhancement.
       ``(C) Modification.--Subject to the provisions of this Act 
     and the approval of the Secretary, each Tribe may modify a 
     plan approved under subparagraph (B).
       ``(D) Liability.--The United States shall not be directly 
     or indirectly liable for any claim or cause of action arising 
     from the approval of a plan under this paragraph, or from the 
     use and expenditure by the Tribe of the principal or interest 
     of the Funds.
       ``(d) Limitation on Per Capita Distributions.--No part of 
     the principal contained in the Tribal Resource Fund, or of 
     the income accruing to such funds, or the revenue from any 
     water use contract, shall be distributed to any member of 
     either Tribe on a per capita basis.
       ``(e) Limitation on Setting Aside Final Consent Decree.--
     Neither the Tribes nor the United States shall have the right 
     to set aside the final consent decree solely because the 
     requirements of subsection (c) are not complied with or 
     implemented.
       ``(f) Limitation on Disbursement of Tribal Resource 
     Funds.--Any funds appropriated under this section shall be 
     placed into the Southern Ute Tribal Resource Fund and the Ute 
     Mountain Ute Tribal Resource Fund in the Treasury of the 
     United States but shall not be available for disbursement 
     under this section until the final settlement of the tribal 
     claims as provided in section 18. The Secretary of the 
     Interior may, in the Secretary's sole discretion, authorize 
     the disbursement of funds prior to the final settlement in 
     the event that the Secretary determines that substantial 
     portions of the settlement have been completed. In the event 
     that the funds are not disbursed under the terms of this 
     section by December 31, 2012, such funds shall be deposited 
     in the general fund of the Treasury.

     ``SEC. 17. COLORADO UTE SETTLEMENT FUND.

       ``(a) Establishment of Fund.--There is hereby established 
     within the Treasury of the United States a fund to be known 
     as the `Colorado Ute Settlement Fund'.
       ``(b) Authorization of Appropriations.--There is authorized 
     to be appropriated to the Colorado Ute Settlement Fund such 
     funds as are necessary to complete the construction of the 
     facilities described in sections 6(a)(1)(A) and 15(b) within 
     7 years of the date of enactment of this section. Such funds 
     are authorized to be appropriated for each of the first 5 
     fiscal years beginning with the first full fiscal year 
     following the date of enactment of this section.

     ``SEC. 18. FINAL SETTLEMENT.

       ``(a) In General.--The construction of the facilities 
     described in section 6(a)(1)(A), the allocation of the water 
     supply from those facilities to the Tribes as described in 
     that section, and the provision of funds to the Tribes in 
     accordance with section 16 and the issuance of an amended 
     final consent decree as contemplated in subsection (c) shall 
     constitute final settlement of the tribal claims to water 
     rights on the Animas and La Plata Rivers in the State of 
     Colorado.
       ``(b) Statutory Construction.--Nothing in this section 
     shall be construed to affect the right of the Tribes to water 
     rights on the streams and rivers described in the Agreement, 
     other than the Animas and La Plata Rivers, to receive the 
     amounts of water dedicated to tribal use under the Agreement, 
     or to acquire water rights under the laws of the State of 
     Colorado.
       ``(c) Action by the Attorney General.--The Attorney General 
     shall file with the District Court, Water Division Number 7, 
     of the State of Colorado, such instruments as may be 
     necessary to request the court to amend the final consent 
     decree to provide for the amendments made to this Act under 
     the Colorado Ute Indian Water Rights Settlement Act 
     Amendments of 2000. The amended final consent decree shall 
     specify terms and conditions to provide for an extension of 
     the current January 1, 2005, deadline for the Tribes to 
     commence litigation of their reserved rights claims on the 
     Animas and La Plata Rivers.

     ``SEC. 19. STATUTORY CONSTRUCTION; TREATMENT OF CERTAIN 
                   FUNDS.

       ``(a) In General.--Nothing in the amendments made by the 
     Colorado Ute Settlement Act Amendments of 2000 shall be 
     construed to affect the applicability of any provision of 
     this Act.
       ``(b) Treatment of Uncommitted Portion of Cost-Sharing 
     Obligation.--The uncommitted portion of the cost-sharing 
     obligation of the State of Colorado referred to in section 
     6(a)(3) shall be made available, upon the request of the 
     State of Colorado, to the State of Colorado after the date on 
     which payment is made of the amount specified in that 
     section.''.

 Mr. CAMPBELL. Mr. President, today I am submitting an 
amendment which supercedes S. 2508, legislation I introduced earlier 
this year to provide for the final settlement of the Colorado Ute 
Indians Water Rights Settlement Act of 1988. I am proud to have my 
colleague Senator Wayne Allard as an original cosponsor of this 
legislation.
  These amendments come after prolonged negotiations with officials of 
the Department of Interior, the Tribes and other parties to this 
agreement. It is our last opportunity to fulfill our treaty obligations 
and prevent the Tribes from suing the federal government for the water 
they were promised more than 12 years ago.
  I am aware of the precious little time we have left in this session 
and the huge legislative task we have with the remaining important 
legislation which remains on our calendar. Unfortunately, the Secretary 
of the Interior waited until September 25, 2000 to sign a Record of 
Decision supporting these amendments, amendments his staff helped 
negotiate. It was my intent to move forward long before this.
  However, I am compelled to introduce this amended legislation now, 
because by law, the Tribes already have the ability to sue the federal 
government to have their treaty obligations for water fulfilled. And, I 
believe the Tribes will undoubtedly prevail and the damages awarded 
them could far exceed what it will cost us to do what is already 
prescribed by law and federal treaty.
  The record, the law and our moral obligation in this matter are 
clear. I believe the Administration and my colleagues agree with me, 
the time to put this matter behind us has come. We teach our children 
that our country was built on honesty, respect for the law and 
integrity. But, we cannot hold up our respect for treaties we have 
entered into with American Indians, because we have never honored any 
of those treaties we have signed. It is time to do what is right and to 
make water available to the Ute Tribes. This legislation does so in a 
manner that minimizes the environmental impacts and the burden on the 
American taxpayers.
  I urge my colleagues to support passage of this legislation before 
Congress adjourns for the year.

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