[Congressional Record Volume 147, Number 71 (Tuesday, May 22, 2001)]
[Senate]
[Pages S5460-S5461]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mr. McCAIN:
  S. 930. 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 National Park to secure bonds for 
capital improvements, and for other purposes; to the Committee on 
Energy and Natural Resources.
  Mr. McCAIN. Mr. President, I rise today to introduce legislation that 
will authorize the Secretary of Interior to develop and implement a 
bonding program to help finance capital improvement projects at the 
Grand Canyon National Park in Arizona.
  For the past few years, I have worked on legislation to implement a 
national parks bonding program to benefit the National Parks system by 
proposing a unique public-private partnership mechanism to finance 
capital improvements through bond revenues. This legislation has 
received substantial support by many of the organizations working with 
the National Parks system. The legislation I am introducing today is 
similar to the National Parks Capital Improvements Act of 2001, but it 
specifically authorizes a park-specific bonding program for the Grand 
Canyon National Park in my home state of Arizona.
  This park-specific proposal is similar to actions taken back in the 
late 1980's to legislate a solution to the air traffic and noise 
pollution problems affecting the Grand Canyon National Park caused by 
overflights over the canyon. Congress enacted legislation to require 
specific measures to mitigate air traffic through the National Parks 
Overflights Act. Once a framework for the Grand Canyon National Park 
was established, it became clear that broader legislation was necessary 
to address similar overflights issues to promote safety and quiet in 
the entire national parks system.
  Much in the same way, I am proposing to allow the Secretary of 
Interior to utilize the bonding mechanism at the Grand Canyon National 
Park, in partnership with a supporting organization. Bonding has worked 
well in other governmental sectors to leverage additional financing for 
local projects where federal or state resources are not otherwise 
sufficient or available.
  This bonding legislation, as well as the broader national parks 
bonding bill, would allow the Grand Canyon National Park to utilize up 
to $2 of its existing fee structure to dedicate to securing bonds to 
finance capital improvement projects. 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 could be used to accomplish many 
critical park projects. With approximately 1.2 million acres to 
protect, this type of financial tool would go far to help redress the 
backlog of needed repairs, maintenance and other

[[Page S5461]]

approved projects at the Grand Canyon National Park.
  I remain committed to broader legislation to implement a park-wide 
bonding program. However, I am proposing that we should also consider 
testing this innovative approach by authorizing its use to help protect 
one of the nation's largest and most magnificent parks, the Grand 
Canyon.
  I ask unanimous consent to print the text of this bill in the Record.
  There being no objection, the bill was ordered to be printed in the 
Record, as follows:

                                 S. 930

       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 ``Grand 
     Canyon 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. Park surcharge or set-aside.
Sec. 6. Use of bond proceeds.
Sec. 7. Report.
Sec. 8. Regulations.

     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) Park.--The term ``Park'' means the Grand Canyon 
     National Park.
       (4) 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 fundraising organization for the benefit of the 
     Park.
       (b) Bonds.--The fundraising organization for the Park shall 
     issue taxable bonds in return for the surcharge or set-aside 
     for the 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 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. PARK SURCHARGE OR SET-ASIDE.

       (a) In General.--Notwithstanding any other provision of 
     law, the Secretary may authorize the Superintendent of the 
     Park--
       (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 Park; or
       (2) to set aside not more than $2 for each individual 
     charged the entrance fee.
       (b) Surcharge in Addition to Entrance Fees.--The 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 
     (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.

     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 Park.
       (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 Park; and
       (C) the general management plan for the 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.--Any interest earned on bond 
     proceeds may be used by the fundraising organization to--
       (1) meet reserve requirements; and
       (2) defray reasonable administrative expenses incurred in 
     connection with the management and sale of the bonds.

     SEC. 7. REPORT.

       (a) In general.--Not later than 2 years after the 
     promulgation of regulations under section 8, the Secretary 
     shall submit to Congress a report on the bond program.
       (b) Requirements.--The report shall include--
       (1) a review of the bond program carried out under this Act 
     at the Park; and
       (2) recommendations to Congress on whether to establish a 
     bond program at all units of the National Park System.

     SEC. 8. REGULATIONS.

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