[Congressional Record Volume 147, Number 13 (Wednesday, January 31, 2001)]
[Senate]
[Pages S916-S917]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mr. McCAIN:
  S. 224. A bill to authorize the Secretary of the Interior to set 
aside up to $2 per person from park entrance fees or assess up to $2 
per person visiting the Grand Canyon or other national parks to secure 
bonds for capital improvements to those parks, and for other purposes; 
to the Committee on Energy and Natural Resources.
  Mr. McCAIN. Mr. President, I am renewing my efforts to provide 
innovative solutions to address urgently needed repairs and 
enhancements at our nation's parks. The legislation I am introducing 
today is identical to the bill I sponsored in prior congresses, which 
received substantial support from many of the organizations supporting 
the National Parks system. I thank my colleague, Representative Kolbe, 
for introducing companion legislation in the House of Representatives.
  The National Parks Capital Improvements Act of 2001 would help secure 
taxable revenue bonding authority for National Parks. This legislation 
would allow private fundraising organizations to enter into agreements 
with the Secretary of Interior to issue taxable capital development 
bonds. Bond revenues would then be used to finance park improvement 
projects. The bonds would be secured by an entrance fee surcharge of up 
to $2 per visitor at participating parks, or a set-aside of up to $2 
per visitor from current entrance fees.
  Our national park system has enormous capital needs--which by last 
estimate ranges from $3 to 5 billion--for high-priority projects such 
as improved transportation systems, trail repairs, visitor facilities, 
historic preservation, and the list goes on and on. The unfortunate 
reality is that even under the rosiest budget scenarios, our growing 
park needs far outstrip the resources currently available. Parks are 
still struggling to address enormous resource and infrastructure needs 
while seeking to improve the park experience to accommodate the 
increasing numbers of visitors to recreation sites.
  Revenue bonding would take us a long way toward meeting our needs 
within the national park system. For example, based on current 
visitation rates at the Grand Canyon, a $2 surcharge would enable us to 
raise $100 million from a bond issue amortized over 20 years. That is a 
significant amount of money which we could use to accomplish many 
critical park projects.
  Let me emphasize, however, the Grand Canyon National Park would not 
be the only park eligible to benefit from this legislation. Any park 
unit with capital needs in excess of $5 million is eligible to 
participate. Among eligible parks, the Secretary of Interior will 
determine which may take part in the program. I also want to stress 
that only projects approved as part of a park's general management plan 
can be funded through bond revenue. This proviso eliminates any concern 
that the revenue could be used for projects of questionable value to 
the park.
  In addition, only organizations under agreement with the Secretary of 
Interior will be authorized to administer the bonding, so the Secretary 
can establish any rules or policies determined necessary and 
appropriate.
  Under no circumstances, however, would investors be able to attach 
liens against Federal property in the very unlikely event of default. 
The bonds will be secured only by the surcharge revenues.
  Finally, the bill specifies that all professional standards apply and 
that the issues are subject to the same laws, rules, and regulatory 
enforcement procedures as any other bond issue.
  The most obvious question raised by this legislation is: Will the 
bond markets support park improvement issues, guaranteed by an entrance 
surcharge? The answer is an emphatic yes. Bonding is a well-tested tool 
for the private sector. Additionally, Americans are eager to invest in 
our Nation's natural heritage, and with park visitation growing 
stronger, the risks appear minimal.
  Are park visitors willing to pay a little more at the entrance gate 
if the money is used for park improvements? Again, I believe the answer 
is yes. Time and time again, visitors have expressed their support for 
increased fees provided that the revenue is used where collected and 
not diverted for some other purpose devised by Congress. In recent 
surveys by the National Park Service, nearly 83 percent of 
participating respondents were comfortable in paying such fees for park 
purposes and other respondents thought the fees too low.
  With the recreational fee program currently being implemented at 
parks around the Nation, an additional $2 surcharge may not be 
necessary or appropriate at certain parks. Under the bill, those parks 
could choose to dedicate $2 per park visitor from current entrance fees 
toward a bond issue. This legislation can easily compliment the 
recreational fee program to increase benefits to support our parks and 
increase the quality of America's park experience well into the future.
  I look forward to working with my colleagues and National Parks 
supporters to ensure passage of this legislation.
  I ask unanimous consent that the text of the bill be printed in the 
Record.
  There being no objection, the bill was ordered to be printed in the 
Record, as follows:

                                 S. 224

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

     SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

       (a) Short Title.--This Act may be cited as the ``National 
     Parks Capital Improvements Act of 2001''.
       (b) Table of Contents.--The table of contents of this Act 
     is as follows:

Sec. 1. Short title; table of contents.
Sec. 2. Definitions.
Sec. 3. Fundraising organization.
Sec. 4. Memorandum of agreement.
Sec. 5. National park surcharge or set-aside.
Sec. 6. Use of bond proceeds.
Sec. 7. Administration.

     SEC. 2. DEFINITIONS.

       In this Act:
       (1) Fundraising organization.--The term ``fundraising 
     organization'' means an entity authorized to act as a 
     fundraising organization under section 3(a).
       (2) Memorandum of agreement.--The term ``memorandum of 
     agreement'' means a memorandum of agreement entered into by 
     the Secretary under section 3(a) that contains the terms 
     specified in section 4.
       (3) National park foundation.--The term ``National Park 
     Foundation'' means the foundation established under the Act 
     entitled ``An Act to establish the National Park 
     Foundation'', approved December 18, 1967 (16 U.S.C. 19e et 
     seq.).
       (4) National park.--The term ``national park'' means--
       (A) the Grand Canyon National Park; and
       (B) any other unit of the National Park System designated 
     by the Secretary that has an approved general management plan 
     with capital needs in excess of $5,000,000.
       (5) Secretary.--The term ``Secretary'' means the Secretary 
     of the Interior.

     SEC. 3. FUNDRAISING ORGANIZATION.

       (a) In General.--The Secretary may enter into a memorandum 
     of agreement under section 4 with an entity to act as an 
     authorized

[[Page S917]]

     fundraising organization for the benefit of a national park.
       (b) Bonds.--The fundraising organization for a national 
     park shall issue taxable bonds in return for the surcharge or 
     set-aside for that national park collected under section 5.
       (c) Professional Standards.--The fundraising organization 
     shall abide by all relevant professional standards regarding 
     the issuance of securities and shall comply with all 
     applicable Federal and State law.
       (d) Audit.--The fundraising organization shall be subject 
     to an audit by the Secretary.
       (e) No Liability for Bonds.--The United States shall not be 
     liable for the security of any bonds issued by the 
     fundraising organization.

     SEC. 4. MEMORANDUM OF AGREEMENT.

       The fundraising organization shall enter into a memorandum 
     of agreement that specifies--
       (1) the amount of the bond issue;
       (2) the maturity of the bonds, not to exceed 20 years;
       (3) the per capita amount required to amortize the bond 
     issue, provide for the reasonable costs of administration, 
     and maintain a sufficient reserve consistent with industry 
     standards;
       (4) the project or projects at the national park that will 
     be funded with the bond proceeds and the specific 
     responsibilities of the Secretary and the fundraising 
     organization with respect to each project; and
       (5) procedures for modifications of the agreement with the 
     consent of both parties based on changes in circumstances, 
     including modifications relating to project priorities.

     SEC. 5. NATIONAL PARK SURCHARGE OR SET-ASIDE.

       (a) In General.--Notwithstanding any other provision of 
     law, the Secretary may authorize the Superintendent of a 
     national park for which a memorandum of agreement is in 
     effect--
       (1) to charge and collect a surcharge in an amount not to 
     exceed $2 for each individual otherwise subject to an 
     entrance fee for admission to the national park; or
       (2) to set aside not more than $2 for each individual 
     charged the entrance fee.
       (b) Surcharge in Addition to Entrance Fees.--A national 
     park surcharge under subsection (a) shall be in addition to 
     any entrance fee collected under--
       (1) section 4 of the Land and Water Conservation Fund Act 
     of 1965 (16 U.S.C. 460l-6a);
       (2) the recreational fee demonstration program authorized 
     by section 315 of the Department of the Interior and Related 
     Agencies Appropriations Act, 1996 (as contained in Public Law 
     104-134; 110 Stat. 1321-156; 1321-200; 16 U.S.C. 460l-6a 
     note); or
       (3) the national park passport program established under 
     title VI of the National Parks Omnibus Management Act of 1998 
     (Public Law 105-391; 112 Stat. 3518; 16 U.S.C. 5991 et seq.).
       (c) Limitation.--The total amount charged or set aside 
     under subsection (a) may not exceed $2 for each individual 
     charged an entrance fee.
       (d) Use.--A surcharge or set-aside under subsection (a) 
     shall be used by the fundraising organization to--
       (1) amortize the bond issue;
       (2) provide for the reasonable costs of administration; and
       (3) maintain a sufficient reserve consistent with industry 
     standards, as determined by the bond underwriter.
       (e) Excess Funds.--Any funds collected in excess of the 
     amount necessary to fund the uses in subsection (d) shall be 
     remitted to the National Park Foundation to be used for the 
     benefit of all units of the National Park System.

     SEC. 6. USE OF BOND PROCEEDS.

       (a) Eligible Projects.--
       (1) In general.--Subject to paragraph (2), bond proceeds 
     under this Act may be used for a project for the design, 
     construction, operation, maintenance, repair, or replacement 
     of a facility in the national park for which the bond was 
     issued.
       (2) Project limitations.--A project referred to in 
     paragraph (1) shall be consistent with--
       (A) the laws governing the National Park System;
       (B) any law governing the national park in which the 
     project is to be completed; and
       (C) the general management plan for the national park.
       (3) Prohibition on use for administration.--Other than 
     interest as provided in subsection (b), no part of the bond 
     proceeds may be used to defray administrative expenses.
       (b) Interest on Bond Proceeds.--
       (1) Authorized uses.--Any interest earned on bond proceeds 
     may be used by the fundraising organization to--
       (A) meet reserve requirements; and
       (B) defray reasonable administrative expenses incurred in 
     connection with the management and sale of the bonds.
       (2) Excess interest.--All interest on bond proceeds not 
     used for purposes of paragraph (1) shall be remitted to the 
     National Park Foundation for the benefit of all units of the 
     National Park System.

     SEC. 7. ADMINISTRATION.

       The Secretary, in consultation with the Secretary of 
     Treasury, shall promulgate regulations to carry out this Act.
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