[House Report 105-483]
[From the U.S. Government Publishing Office]



105th Congress                                                   Report
                        HOUSE OF REPRESENTATIVES

 2d Session                                                     105-483
_______________________________________________________________________


 
 NATIONAL FISH AND WILDLIFE FOUNDATION ESTABLISHMENT ACT AMENDMENTS OF 
                                  1998

                                _______
                                

 April 21, 1998.--Committed to the Committee of the Whole House on the 
              State of the Union and ordered to be printed

_______________________________________________________________________


  Mr. Young of Alaska, from the Committee on Resources, submitted the 
                               following

                              R E P O R T

                             together with

                            DISSENTING VIEWS

                        [To accompany H.R. 2376]

      [Including cost estimate of the Congressional Budget Office]

  The Committee on Resources, to whom was referred the bill 
(H.R. 2376) to reauthorize and amend the National Fish and 
Wildlife Foundation Establishment Act, having considered the 
same, report favorably thereon with an amendment and recommend 
that the bill as amended do pass.
  The amendment is as follows:
  Strike out all after the enacting clause and insert in lieu 
thereof the following:

SECTION 1. SHORT TITLE; AMENDMENT REFERENCES.

  (a) Short Title.--This Act may be cited as the ``National Fish and 
Wildlife Foundation Establishment Act Amendments of 1998''.
  (b) Amendment of National Fish and Wildlife Foundation Establishment 
Act.--Except as otherwise expressly provided, whenever in this Act an 
amendment or repeal is expressed in terms of an amendment to, or repeal 
of, a section or other provision, the reference shall be considered to 
be made to a section or other provision of the National Fish and 
Wildlife Foundation Establishment Act (16 U.S.C. 3701 et seq.).

SEC. 2. MEMBERSHIP OF BOARD OF DIRECTORS OF THE FOUNDATION.

  (a) Amendments.--Section 3 (16 U.S.C. 3702) is amended--
          (1) in subsection (a)--
                  (A) in the matter preceding paragraph (1), by 
                striking ``15'' and inserting ``22'';
                  (B) in paragraph (1), by striking ``six'' and 
                inserting ``4'', and by striking ``and'' after the 
                semicolon at the end;
                  (C) in paragraph (2) by striking the period at the 
                end and inserting ``; and'';
                  (D) by inserting after paragraph (2) the following:
          ``(3) 4 of whom must be knowledgeable and experienced in 
        ocean and coastal resource conservation.''; and
                  (E) in the material following paragraph (3) (as so 
                added), by striking ``shall be'' and inserting ``and 
                the Under Secretary of Commerce for Oceans and 
                Atmosphere shall each be''; and
          (2) by amending subsection (b) to read as follows:
  ``(b) Appointment and Terms.--
          ``(1) In general.--The Secretary of the Interior (in this Act 
        referred to as the `Secretary') shall appoint the Directors of 
        the Board, after considering recommendations from the Board 
        under paragraph (4). The Secretary of the Interior shall 
        consult with the Under Secretary of Commerce for Oceans and 
        Atmosphere before appointing any Director of the Board.
          ``(2) Terms.--The Directors shall be appointed for terms of 6 
        years; except that the Secretary, in making the initial 
        appointments to the Board, shall appoint 3 Directors to a term 
        of 2 years, 2 Directors to a term of 4 years, and 2 Directors 
        to a term of 6 years. No individual may serve more than 2 
        consecutive full terms as a Director.
          ``(3) Vacancies.--A vacancy on the Board shall be filled 
        within 60 days after the occurrence of the vacancy. Any 
        individual appointed to fill a vacancy occurring prior to the 
        expiration of any term of office shall be appointed for the 
        remainder of that term.
          ``(4) Nomination of appointees.--The Board may recommend to 
        the Secretary individuals to be appointed as Directors of the 
        Board.''.
  (b) Application.--The amendments made by subsection (a) shall apply 
to any appointment of a Director of the Board of the National Fish and 
Wildlife Foundation on or after the date of the enactment of this Act.
  (c) Appointment of Additional Members.--
          (1) Nominations.--The Board of Directors on the National Fish 
        and Wildlife Foundation shall submit any recommendations of 
        individuals for appointment to positions on the Board created 
        by the amendment made by subsection (a)(1) by not later than 60 
        days after the date of the enactment of this Act.
          (2) Staggered terms.--Of the Directors on the Board of 
        Directors of the National Fish and Wildlife Foundation first 
        appointed pursuant to the amendment made by subsection (a)(1)--
                  (A) 3 shall be appointed to a term that expires 
                December 31, 1999;
                  (B) 2 shall be appointed to a term that expires 
                December 31, 2001; and
                  (C) 2 shall be appointed to a term that expires 
                December 31, 2003,
        as specified by the Secretary of the Interior at the time of 
        appointment.

SEC. 3. RIGHTS AND OBLIGATIONS OF THE FOUNDATION.

  (a) Investment and Deposit of Federal Funds.--Section 4(c) (16 U.S.C. 
3703(c)) is amended--
          (1) by redesignating paragraphs (3) through (7) in order as 
        paragraphs (8) through (12); and
          (2) by inserting after paragraph (2) the following:
          ``(3) to invest any funds provided to the Foundation by the 
        Federal Government in obligations of the United States or in 
        obligations or securities that are guaranteed or insured by the 
        United States;
          ``(4) to deposit any funds provided to the Foundation by the 
        Federal Government into accounts that are insured by an agency 
        or instrumentality of the United States;
          ``(5) to make use of any interest or investment income that 
        accrues as a consequence of actions taken under paragraph (3) 
        or (4) to carry out the purposes of the Foundation;
          ``(6) to provide Federal funds for the purpose of entering 
        into cooperative agreements with willing private landowners for 
        restoration and enhancement of fish, wildlife, and other 
        natural resources on public or private land, or both, if such 
        cooperative agreements--
                  ``(A) provide general conservation benefits; or
                  ``(B) benefit fish, wildlife, or other natural 
                resources on public land;
          ``(7) to accept and manage funds provided by any Federal 
        agency under any other law when it is in the public 
        interest;''.
  (b) Agency Approval of Acquisitions of Property.--Section 4(e) (16 
U.S.C. 3703(e)) is amended--
          (1) by amending paragraph (1)(B) to read as follows:
          ``(B) the Foundation notifies the Federal agency that 
        administers the program under which the funds were provided of 
        the proposed acquisition, and the agency fails to object in 
        writing to the proposed acquisition within 60 days after the 
        date of that notification.''; and
          (2) in paragraph (2), by striking ``the Director'' and 
        inserting ``the head of the Federal agency that administers the 
        program under which the funds were provided''.
  (c) Repeal.--Section 304 of Public Law 102-440 (16 U.S.C. 3703 note) 
is repealed.
  (d) Agency Approval of Conveyances and Grants.--Section 
4(e)(3)(B)(ii) (16 U.S.C. 3703(e)(3)(B)(ii)) is amended to read as 
follows:
          ``(ii) the Foundation notifies the Federal agency that 
        administers the Federal program under which the funds were 
        provided of the proposed conveyance or provision of Federal 
        funds, and the head of the agency fails to object in writing to 
        such proposed conveyance or provision of Federal funds within 
        60 days after the date of that notification.''.
  (e) Reconveyance of Real Property.--Section 4(e)(5) (16 U.S.C. 
3703(e)(5)) is amended to read as follows:
  ``(5) The Foundation shall convey at not less than fair market value 
any real property acquired by it in whole or in part with Federal funds 
if the Foundation notifies the Federal agency that administers the 
Federal program under which the funds were provided, and the agency 
fails to disagree within 60 days after the date of that notification, 
that--
          ``(A) the property is no longer valuable for the purposes of 
        fish and wildlife conservation or management; and
          ``(B) the purposes of the Foundation would be better served 
        by the use of the proceeds of the conveyance for authorized 
        activities of the Foundation.''.
  (f) Termination of Condemnation Limitation; Expenditures for Printing 
or Capital Equipment.--Section 4(d) (16 U.S.C. 3703(d)) is amended to 
read as follows:
  ``(d) Expenditures for Printing or Capital Equipment.--The Foundation 
may not make an expenditure of Federal funds for printing or capital 
equipment that is greater than $10,000 unless the expenditure is 
approved by the Federal agency that administers the Federal program 
under which the funds were provided.''.

SEC. 4. MATCHING REQUIREMENT.

  Section 10(b)(1) (16 U.S.C. 3709(b)(1)) is amended by striking 
``matching, in whole or in part,'' and inserting ``matching, on a one-
to-one basis,''.

SEC. 5. RESTRICTIONS ON USE OF GRANTS PROVIDED BY FOUNDATION.

  Section 10(b) (16 U.S.C. 3709(b)) is amended by adding at the end the 
following:
  ``(3)(A) Amounts provided as a grant by the Foundation shall not be 
used for--
          ``(i) expenses related to litigation; or
          ``(ii) any activity the purpose of which is to influence 
        legislation pending before the Congress.
  ``(B) Subparagraph (A)(ii) shall not be considered to prohibit 
officers or employees of the Foundation from communicating to Members 
or staff of Congress requests for legislation that they consider 
necessary for the efficient conduct of the business of the Foundation 
or that relates to the authority of the Foundation, appropriations for 
use by the Foundation, or use of Federal funds by the Foundation.
  ``(4) Amounts provided as a grant by the Foundation shall not be used 
for any activity related to the introduction of wolves or grizzly bears 
in Idaho, Montana, Utah, or Wyoming.''.

SEC. 6. AUTHORIZATION OF APPROPRIATIONS.

  (a) In General.--Section 10(a) (16 U.S.C. 3709(a)) is amended to read 
as follows:
  ``(a) Authorization.--There are authorized to be appropriated to the 
Secretary of the Interior and the Secretary of Commerce, in the 
aggregate, $25,000,000 for fiscal year 1999.''.
  (b) Repeal.--Section 10(c) (16 U.S.C. 3709(c)) is repealed.

                          Purpose of the Bill

    The purpose of H.R. 2376 is to reauthorize and amend the 
National Fish and Wildlife Foundation Establishment Act.

                  Background and Need for Legislation

    On March 26, 1984, President Ronald Reagan signed H.R. 2809 
into law, thus establishing the National Fish and Wildlife 
Foundation. Public Law 98-244, the National Fish and Wildlife 
Foundation Establishment Act, states that

    The Foundation is a charitable and nonprofit corporation 
and is not an agency or establishment of the United States. The 
purposes of the Foundation are:
          (1) to encourage, accept, and administer private 
        gifts of property for the benefit of, or in connection 
        with, the activities and services of the United States 
        Fish and Wildlife Service; and
          (2) to undertake and conduct such other activities as 
        will further the conservation and management of the 
        fish, wildlife, and plant resources of the United 
        States, and its territories and possessions, for 
        present and future generations of Americans.

    The National Fish and Wildlife Foundation Establishment Act 
also stipulated that the Foundation would be governed by a 
Board of Directors, consisting of nine U.S. citizens appointed 
by the Secretary of the Interior who are educated, experienced, 
and knowledgeable in fish and wildlife conservation; the 
members of the Board would serve for a maximum of 12 years 
without pay, but would be eligible for travel and subsistence 
expenses; the Foundation would be audited on a yearly basis; 
and the Foundation would be authorized to receive up to $1 
million in U.S. taxpayers' funds for a ten-year period 
beginning on October 1, 1983. The Foundation was required to 
match, on a one-for-one-basis, any appropriated funds.
    In 1988, the Congress increased the authorization for the 
National Fish and Wildlife Foundation to $5 million a year 
(Public Law 100-240). It also repealed the one-for-one matching 
fund requirement.
    In 1990, the Congress again extended the Foundation's 
ability to obtain U.S. taxpayer support for an additional three 
years by increasing the $5 million authorization ceiling to $15 
million in Fiscal Year (FY) 1991, $20 million in FY 1992, and 
$25 million in FY 1993. Furthermore, the legislation prohibited 
the Foundation from using any federal funds for its 
administrative expenses, including salaries, travel, 
transportation, and other overhead expenses.
    Finally, four years ago, Congress enacted the National Fish 
and Wildlife Improvement Act of 1994 (Public Law 103-232). This 
law contained several provisions including: expanding the 
Foundation's Board of Directors from nine to 15 members; 
providing explicit authority for the Foundation to work with 
the National Oceanic and Atmospheric Administration on marine 
conservation projects; and authorizing federal appropriations 
of $25 million per year for Fiscal Years 1994, 1995, 1996, 1997 
and 1998.
    Since its creation in 1984, the Foundation has received 
$105.7 million in federal funds. In FY 1998 the Foundation 
received $17.7 million in appropriated monies. Below is a chart 
that reflects the amount of federal support the Foundation has 
received.


    With these funds and monies raised from the private sector, 
the National Fish and Wildlife Foundation has financed more 
than 2,382 conservation projects throughout the United States 
and in 33 other countries. By using a partnership and challenge 
grant approach, conservation projects worth more than $298 
million have been funded. This is a ratio of $2.34 of non-
federal money for each federal dollar appropriated to the 
Foundation. The Foundation has conducted these projects with 15 
federal agencies, 65 state and local agencies, 64 colleges and 
universities, and 468 different conservation groups, including 
the Cape May Bird Observatory, Chesapeake Bay Foundation, 
Defenders of Wildlife, Ducks Unlimited, Inc., Rocky Mountain 
Elk Foundation, International Association of Fish and Wildlife 
Agencies, The Nature Conservancy, New Jersey Conservation 
Foundation, the Peregrine Fund and Zoo Atlanta.
    The fundamental goals of these conservation projects have 
been to promote habitat conservation, environmental education, 
and natural resource management. The Foundation awards grant 
money and funds conservation projects within five broad 
category areas. These are:
    Wetlands and Private Lands Initiative.--This program works 
through the North American Waterfowl Management Plan, the 
Wetlands Reserve Program, and the North American Wetlands 
Partnership to cooperatively undertake projects between the 
U.S., Canada, and Mexico to protect and restore both publicly 
and privately owned wetlands. This initiative has approved 439 
projects totaling $104.7 million, driven by $43.5 million in 
federal funds.
    Conservation Education Initiative.--This program gives 
educators access to conservation materials and programs, 
encourages youths to pursue conservation careers, funds 
community-based conservation programs, and supports leadership 
training for conservation professionals. This initiative also 
focuses on bringing conservation education to under-served and 
multi-cultural communities. A total of 299 projects have been 
funded by $25.2 million, using $7.6 million in federal funds.
    Neotropical Migratory Bird Conservation Initiative.--This 
program brings public and private partners together in efforts 
to conserve migratory songbirds and the habitats on which they 
depend. One example is ``Partners in Flight,'' an effort to 
protect and prevent the decline of migratory birds that breed 
in North America and winter in Central and South America. The 
initiative has undertaken 382 projects totaling $32.7 million, 
driven by $11.6 million in federal funds.
    Fisheries Conservation and Management Initiative.--This 
program addresses resource and habitat depletion issues for 
marine, estuarine, and inland fisheries. The Foundation has 
been active in the New England fishery crisis, involved with 
coral reef conservation, restored aquatic ecosystems in the 
Southeast, and is supporting salmon conservation in California 
and the Pacific Northwest. A total of 533 projects have been 
funded by $58.9 million, using $15.9 million in federal funds.
    Wildlife and Habitat Management Initiative.--This program 
encompasses broad issues in fish, wildlife, and plant 
conservation, including threatened and endangered species 
recovery, habitat conservation and big game management. It has 
supported grants to better understand the impact and management 
of invasive exotic species. The Initiative has undertaken 699 
projects totaling $65.7 million, driven by $18.6 million in 
federal funds.
    The National Fish and Wildlife Foundation also has a 
Conservation Policy Group that publishes Fisheries and Wildlife 
Assessments annually for Congressional Representatives and 
staff, the Executive Branch, and conservation organizations. 
These documents provide comprehensive, nongovernmental budget 
analysis of the major federal agencies with significant natural 
resource management and stewardship responsibilities.
    During the past three years, the National Fish and Wildlife 
Foundation has also been involved in several high profile 
conservation efforts. The first was a joint effort between the 
Foundation and the Exxon Corporation to establish the ``Save 
the Tiger Fund.'' The purpose of this Fund is to ``generate 
awareness and raise funds for the tiger's fight for survival, 
while also providing an independent vehicle for public 
contributions to support ongoing conservation projects.'' 
1
---------------------------------------------------------------------------
    \1\ Of the eight subspecies of tigers, only five exist today and 
three of those species--the South China tiger (30 animals), the 
Sumatran tiger (400-500 animals) and the Siberian tiger (447-500 
animals) are critically endangered. In fact, the World Conservation 
Union has stated that these three species of tigers face a 50 percent 
probability of extinction within two tiger generations, which is about 
20 years.
---------------------------------------------------------------------------
    Specifically, the Save the Tiger Fund supports a high-tech 
tiger census that uses remote cameras, collars that emit radio 
signals, and map-linked databases to track tiger movements; 
assists in the protection and acquisition of critical tiger 
habitats; trains wildlife managers and government authorities 
in Asian countries; and is establishing a global gene pool to 
assist the small, isolated populations of tigers that exist 
today. To accomplish these goals, the Exxon Corporation has 
pledged to donate $5 million to tiger conservation, and the 
Foundation has already spent $3.5 million on 48 Siberian tiger 
conservation projects.
    The Fund is overseen by an independent council consisting 
of eight of the world's leading zoologists, conservationists, 
and tiger authorities, and it is operated by the National Fish 
and Wildlife Foundation. The council is charged with the 
responsibility of monitoring the various tiger projects, 
reviewing proposals to fund new ones, and suggesting 
alternative solutions that may be required in the future.
    The second conservation effort involves an agreement signed 
by the Foundation and the U.S. Fish and Wildlife Service on 
October 17, 1997. Under the terms of this agreement, the 
Foundation will manage polar bear trophy fees that are paid by 
sport hunters who legally import a polar bear into the United 
States from Canada. These fees were established by the Marine 
Mammal Protection Act Amendments of 1994 (Public Law 103-238). 
It is expected that the Foundation will match this money, which 
is now about $80,000, with privately raised contributions. All 
of these funds will be used exclusively for polar bear 
conservation programs in Alaska and Russia.
    While the majority of the 2,382 grants have been for 
worthwhile projects, the Foundation has funded controversial 
efforts to reintroduce grizzly bears and wolf populations into 
Idaho, Montana, Wyoming and other states. In addition, the 
Foundation financially supported the Nature Conservancy's 
Florida Keys Public Awareness Program that, according to an 
October 1, 1996, General Accounting Office (GAO) report, 
engaged in illegal lobbying activities. These activities 
included attempts to prevent a local referendum on the Florida 
Keys National Marine Sanctuary and efforts to influence federal 
and state legislation. GAO pointed out that the Nature 
Conservancy's reports to the Foundation did not adequately 
describe its activities, and that the Foundation, prior to the 
controversy surrounding this grant, had changed its reporting 
requirements.
    These projects were extensively discussed in the 
Subcommittee's two hearings on the Foundation and remedial 
language was incorporated within H.R. 2376.

                            Committee Action

    H.R. 2376 was introduced on August 1, 1997, by Congressman 
Jim Saxton (R-NJ), Chairman, Subcommittee on Fisheries 
Conservation, Wildlife and Oceans, and Congressman Neil 
Abercrombie (D-HI), Ranking Minority Member, Subcommittee on 
Fisheries Conservation, Wildlife and Oceans. The bill was 
referred to the Committee on Resources, and within the 
Committee to the Subcommittee on Fisheries Conservation, 
Wildlife and Oceans.
    On September 25, 1997, the Subcommittee on Fisheries 
Conservation, Wildlife and Oceans held a hearing on H.R. 2376. 
Testimony on the bill was heard from the Honorable Helen 
Chenoweth; Ms. Jamie Rappaport Clark, Director, U.S. Fish and 
Wildlife Service; Ms. Sally Yozell, Deputy Assistant Secretary 
for Oceans and Atmosphere, National Oceanic and Atmospheric 
Administration; Mr. Amos Eno, Executive Director, National Fish 
and Wildlife Foundation; Mr. Gary Taylor, Legislative Director, 
International Association of Fish and Wildlife Agencies; Mr. 
Edward F. Ahnert, President, Exxon Education Foundation; Mr. 
Don Glaser, Executive Director, Western Water Policy Review 
Advisory Commission; Mr. Don R. Taylor, Vice President, 
Sustainability and Stewardship, Champion International 
Corporation; Mr. William C. Miller, Jr., President, Malpai 
Borderlands Group; Mr. Jonathan Adler, Director of 
Environmental Studies, Competitive Enterprise Institute; and 
Ms. Lois Van Hoover, Idaho Multiple Land Use Coalition.
    On October 23, 1997, the Subcommittee on Fisheries 
Conservation, Wildlife and Oceans met to mark up H.R. 2376. Mr. 
Saxton offered two amendments, en bloc, to the legislation. The 
amendment stipulated that none of the money the Foundation 
provides to a grantee may be used for political lobbying or 
litigation of any kind, designated that the Department of 
Commerce's ex officio member of the Foundation's Board of 
Directors would be the Under Secretary for Oceans and 
Atmosphere, and shortened the authorization period for the 
Foundation to September 30, 2000. The amendment was adopted by 
voice vote. The bill was then ordered favorably reported to the 
full Resources Committee by voice vote.
    On March 11, 1998, the Full Committee met to consider H.R. 
2376. At that time, Mrs. Chenoweth offered two amendments. The 
first amendment stipulated that a recipient of a Foundation 
grant could not use those monies for any activity related to 
the introduction of wolves or grizzly bears in Idaho, Montana, 
Utah, or Wyoming. The amendment was adopted by voice vote. The 
second amendment by Mrs. Chenoweth reduced the reauthorization 
period to one year. The amendment was adopted by a vote of 18 
to 9 as follows:


    The bill, as amended, was then ordered favorably reported 
to the House of Representatives by voice vote.

                      Section-by-Section Analysis

              Section 1. short title. amendment references

    This Act may be cited as the ``National Fish and Wildlife 
Foundation Establishment Act Amendments of 1998.'' Amendments 
in this Act are to the National Fish and Wildlife Foundation 
Establishment Act (16 U.S.C. 3701 et seq.).

     Section 2. membership of board of directors of the foundation

    Section 2(a) of the bill would increase the number of 
members of the Board of Directors from 15 to 22. This section 
would also require that four members of the Foundation's Board 
be knowledgeable and experienced in ocean and coastal resource 
conservation and that the Department of Commerce's ex officio 
member of the Board be the Under Secretary for Oceans and 
Atmosphere. This section also includes procedures for the 
appointment of Board members, their terms of service, the 
filling of any Board vacancies, and the establishment of 
staggered terms for the seven new members of the Foundation's 
Board of Directors.
    This is the second time that the size of the Foundation's 
Board of Directors has been increased. In 1994, Congress 
expanded the Board from 9 to 15 members, and they became the 
Foundation for the National Oceanic and Atmospheric 
Administration. While the Committee did not endorse the notion 
that the Foundation's Board members should be self-appointed, 
this section does formalize the current practice where the 
Foundation provides the Secretary of the Interior with 
recommendations on who would be an appropriate person to serve 
on its Board. The Secretary shall retain the authority to 
appoint the members of the Board, except for the two ex officio 
members.

          Section 3. rights and obligations of the foundation

    Section 3(a) authorizes the Foundation to invest funds in 
U.S. securities, to make use of any interest earned, to enter 
into cooperative agreements with willing private landowners for 
restoration and enhancement of fish, wildlife and other natural 
resources, and to accept and manage funds provided by a federal 
agency when it is in the public interest.
    Section 3(b) authorizes the Foundation to acquire property 
with federal funds after notifying the appropriate agency in 
writing and the agency does not object.
    Section 3(c) repeals Section 304 of Public Law 102-440 
(Wild Bird Conservation Act of 1992) to remove an outdated 
audit requirement. The Foundation would be subjected to the 
general government audit threshold of $300,000.
    Section 3(d) authorizes the Foundation to convey property 
acquired with federal funds and to provide federal funds to 
private individuals to acquire land after notifying the 
appropriate agency in writing and the agency does not object.
    Section 3(e) allows the Foundation to convey, at not less 
than fair market value, property no longer valuable for fish 
and wildlife conservation or management after notifying the 
appropriate agency in writing and the agency does not object.
    The fundamental purpose of Sections 3(b), 3(d), and 3(e) is 
to improve the operation of the Foundation and to maximize the 
use of its funds for fish and wildlife conservation projects. 
Under current law, the Director of the U.S. Fish and Wildlife 
Service must determine in writing that the Foundation may 
acquire, convey, or sell certain property before the 
transaction can be undertaken. This has caused time-consuming 
and unnecessary delays in the Foundation's acquisition process. 
The notification requirement contained in this Act is an 
acceptable alternative for the U.S. Fish and Wildlife Service.
    Section 3(f) repeals Section 4(d) of the National Fish and 
Wildlife Foundation Establishment Act (16 U.S.C. 3703(d)) which 
stipulates that no lands or water, or interests therein, that 
are controlled by the Foundation and are determined by the 
Director of the U.S. Fish and Wildlife Service or the Migratory 
Bird Conservation Commission to be valuable for purposes of 
fish and wildlife conservation or management shall be subject 
to condemnation by any state or political subdivision, or any 
agent or instrumentality. This bill will remove this 
condemnation shield and will treat these lands like other 
private property. This section also stipulates that the 
Foundation must seek approval from the appropriate federal 
agency for the purchase of any capital equipment or printing 
costs greater than $10,000. Current law requires approval of 
all purchases of capital equipment and printing costs 
regardless of the amount.

                    Section 4. matching requirement

    This section reestablishes the requirement of Public Law 
98-244 creating the National Fish and Wildlife Foundation, but 
subsequently repealed, that the Foundation match, at a minimum, 
on a one-to-one basis, private contributions for each dollar 
they receive in appropriations from the Federal Government. In 
determining eligibility of contributed funds for the purposes 
of matching federal dollars, the Foundation shall ensure that 
such contributed funds are: (1) specific to the project(s) 
being funded by the Foundation; (2) non-federal in nature; and 
(3) third party, which means they are derived from a source 
other than the grantee.

        Section 5. restrictions on grants provided by foundation

    This section stipulates that none of the money the 
Foundation provides to a grantee to conduct a conservation 
project may be used for political lobbying or litigation of any 
kind. This section is not intended to prohibit the officers or 
employees of the Foundation from communicating with Congress on 
matters relating to the authority of the Foundation or the use 
of their appropriated federal funds.
    This section is consistent with a requirement that the 
Foundation already places on its grantees. Currently, every 
individual or organization that obtains funding from the 
Foundation to participate or conduct a fish and wildlife 
conservation project must sign a contract stipulating that none 
of the money it receives, either with Foundation federal or 
non-federal matching funds, will be used for political advocacy 
or litigation of any kind.
    This section also stipulates that a recipient of a grant 
from the Foundation may not use those monies for any activity 
related to the introduction of wolves or grizzly bears in 
Idaho, Montana, Utah, or Wyoming.

               Section 6. authorization of appropriations

    This section extends the current authorization of 
appropriations level of $25 million for the Foundation for 
Fiscal Year 1999. The Foundation's current authorization 
expires on September 30, 1998. This section includes specific 
authority for the Secretary of Commerce to receive appropriated 
funds. To minimize additional paperwork and administrative 
burden, the Committee intends that the Foundation shall receive 
advanced payment of the entire award amounts at the time award 
agreements are executed. It also repeals Section 10(c) (16 
U.S.C. 3709(c)) which stipulates that ``the amounts authorized 
to be appropriated under this section are in addition to any 
amounts provided or available to the Foundation under any other 
Federal law.''
    Section 10(c) was enacted in Public Law 103-232, the 
National Fish and Wildlife Foundation Improvement Act of 1994. 
The Committee believes that this section is no longer 
appropriate and that language in Section 3(a)(7) of the 
National Fish and Wildlife Foundation Establishment Act will 
ensure that the Foundation may ``accept and manage funds 
provided by any Federal agency when it is in the public 
interest.''

            Committee Oversight Findings and Recommendations

    With respect to the requirements of clause 2(l)(3) of rule 
XI of the Rules of the House of Representatives, and clause 
2(b)(1) of rule X of the Rules of the House of Representatives, 
the Committee on Resources' oversight findings and 
recommendations are reflected in the body of this report.

                  Federal Advisory Committee Statement

    The functions of the advisory committee reauthorized in 
H.R. 2376 are not currently being nor could they be performed 
by one or more agencies, an advisory committee already in 
existence or by enlarging the mandate of an existing advisory 
committee.

                   Constitutional Authority Statement

    Article I, section 8 of the Constitution of the United 
States grants Congress the authority to enact H.R. 2376.

                        Cost of the Legislation

    Clause 7(a) of rule XIII of the Rules of the House of 
Representatives requires an estimate and a comparison by the 
Committee of the costs which would be incurred in carrying out 
H.R. 2376. However, clause 7(d) of that rule provides that this 
requirement does not apply when the Committee has included in 
its report a timely submitted cost estimate of the bill 
prepared by the Director of the Congressional Budget Office 
under section 403 of the Congressional Budget Act of 1974.

                     Compliance With House Rule XI

    1. With respect to the requirement of clause 2(l)(3)(B) of 
rule XI of the Rules of the House of Representatives and 
section 308(a) of the Congressional Budget Act of 1974, H.R. 
2376 does not contain any new budget authority, spending 
authority, credit authority, or an increase or decrease in 
revenues or tax expenditures.
    2. With respect to the requirement of clause 2(l)(3)(D) of 
rule XI of the Rules of the House of Representatives, the 
Committee has received no report of oversight findings and 
recommendations from the Committee on Government Reform and 
Oversight on the subject of H.R. 2376.
    3. With respect to the requirement of clause 2(l)(3)(C) of 
rule XI of the Rules of the House of Representatives and 
section 403 of the Congressional Budget Act of 1974, the 
Committee has received the following cost estimate for H.R. 
2376 from the Director of the Congressional Budget Office.

               Congressional Budget Office Cost Estimate

                                     U.S. Congress,
                               Congressional Budget Office,
                                    Washington, DC, March 31, 1998.
Hon. Don Young,
Chairman, Committee on Resources,
House of Representatives, Washington, DC.
    Dear Mr. Chairman: The Congressional Budget Office has 
prepared the enclosed cost estimate for H.R. 2376, the National 
Fish and Wildlife Foundation Establishment Act Amendments of 
1997.
    If you wish further details on this estimate, we will be 
pleased to provide them. The CBO staff contact is Deborah Reis.
            Sincerely,
                                         June E. O'Neill, Director.
    Enclosure.

H.R. 2376--National Fish and Wildlife Foundation Establishment Act 
        Amendments of 1997

    Summary: H.R. 2376 would authorize the appropriation of $25 
million for fiscal year 1999 to the Departments of Commerce and 
the Interior for making payments to the National Fish and 
Wildlife Foundation (NFWF). The payments would be available to 
the foundation to match contributions received from private, 
state, and local organizations to carry out various wildlife 
programs. Other bill provisions, which would amend the National 
Fish and Wildlife Foundation Establishment Act, would have no 
impact on federal spending. Many of these provisions would 
clarify existing laws regarding the foundation's investment and 
use of federally appropriated funds. The bill would not affect 
direct spending or receipts; therefore, pay-as-you-go 
procedures would not apply. H.R. 2376 contains no 
intergovernmental or private-sector mandates as defined in the 
Unfunded Mandates Reform Act of 1995 (UMRA) and would have no 
significant impact on the budgets of state, local, or tribal 
governments.
    Estimated cost to the Federal Government: Assuming 
appropriations of the authorized amount, CBO estimates that the 
Departments of Commerce and the Interior would pay the NFWF a 
total of $25 million in the first quarter of fiscal year 1999. 
The authorized payment is the same as the current annual 
authorization (which expires at the end of this fiscal year) 
but is $19 million higher than the amount appropriated for the 
NFWF for 1998. The estimated budgetary impact of H.R. 2376 is 
shown in the following table. The costs of this legislation 
fall within the budget function 300 (natural resources and 
environment).

----------------------------------------------------------------------------------------------------------------
                                                                  By fiscal years, in millions of dollars--     
                                                           -----------------------------------------------------
                                                              1998     1999     2000     2001     2002     2003 
----------------------------------------------------------------------------------------------------------------
                                        SPENDING SUBJECT TO APPROPRIATION                                       
                                                                                                                
Spending Under Current Law:                                                                                     
    Budget Authority \1\..................................        6        0        0        0        0        0
    Estimated Outlays.....................................        6        0        0        0        0        0
Proposed Changes:                                                                                               
    Authorization Level...................................        0       25        0        0        0        0
    Estimated Outlays.....................................        0       25        0        0        0        0
Spending Under H.R. 2376:                                                                                       
    Authorization Level \1\...............................        6       25        0        0        0        0
    Estimated Outlays.....................................        6       25        0        0        0        0
----------------------------------------------------------------------------------------------------------------
\1\ The 1998 level is the amount appropriated for that year.                                                    

    Pay-as-you-go considerations: None.
    Intergovernmental and private-sector impact: H.R. 2376 
contains no intergovernmental or private-sector mandates as 
defined in UMRA and would have no significant impact on the 
budgets of state, local, or tribal governments.
    Estimate prepared by: Deborah Reis.
    Estimate approved by: Paul N. Van De Water, Assistant 
Director for Budget Analysis.

                    Compliance With Public Law 104-4

    H.R. 2376 contains no unfunded mandates.

         Changes in Existing Law Made by the Bill, as Reported

  In compliance with clause 3 of rule XIII of the Rules of the 
House of Representatives, changes in existing law made by the 
bill, as reported, are shown as follows (existing law proposed 
to be omitted is enclosed in black brackets, new matter is 
printed in italic, existing law in which no change is proposed 
is shown in roman):

NATIONAL FISH AND WILDLIFE FOUNDATION ESTABLISHMENT ACT

           *       *       *       *       *       *       *


SEC. 3. BOARD OF DIRECTORS OF THE FOUNDATION.

  (a) Establishment and Membership.--The Foundation shall have 
a governing Board of Directors (hereinafter referred to in this 
Act as the ``Board''), which shall consist of [15] 22 
Directors, each of whom shall be a United States citizen and--
          (1) [six] 4 of whom must be knowledgeable or 
        experienced in fish and wildlife conservation; [and]
          (2) 4 of whom must be educated and experienced in the 
        principles of fish and wildlife management[.]; and
          (3) 4 of whom must be knowledgeable and experienced 
        in ocean and coastal resource conservation.
The membership of the Board, to the extent practicable, shall 
represent diverse points of view relating to fish and wildlife 
conservation. The Director of the United States Fish and 
Wildlife Service [shall be] and the Under Secretary of Commerce 
for Oceans and Atmosphere shall each be an ex officio nonvoting 
member of the Board. Appointment to the Board shall not 
constitute employment by, or the holding of an office of, the 
United States for the purposes of any Federal law.
  [(b) Appointment and Terms.--By December 31, 1984, the 
Secretary of the Interior (hereinafter referred to in this Act 
as the ``Secretary'') shall appoint the Directors of the Board. 
The Directors shall be appointed for terms of 6 years; except 
that the Secretary, in making the initial appointments to the 
Board, shall appoint 3 Directors to a term of 2 years, 3 
Directors to a term of 4 years, and 3 Directors to a term of 6 
years. A vacancy on the Board shall be filled within 60 days of 
said vacancy in the manner in which the original appointment 
was made. No individual may serve more than 2 consecutive terms 
as a Director. The Secretary of the Interior shall consult with 
the Under Secretary of Commerce for Oceans and Atmosphere 
before appointing any Director of the Board.]
  (b) Appointment and Terms.--
          (1) In general.--The Secretary of the Interior (in 
        this Act referred to as the ``Secretary'') shall 
        appoint the Directors of the Board, after considering 
        recommendations from the Board under paragraph (4). The 
        Secretary of the Interior shall consult with the Under 
        Secretary of Commerce for Oceans and Atmosphere before 
        appointing any Director of the Board.
          (2) Terms.--The Directors shall be appointed for 
        terms of 6 years; except that the Secretary, in making 
        the initial appointments to the Board, shall appoint 3 
        Directors to a term of 2 years, 2 Directors to a term 
        of 4 years, and 2 Directors to a term of 6 years. No 
        individual may serve more than 2 consecutive full terms 
        as a Director.
          (3) Vacancies.--A vacancy on the Board shall be 
        filled within 60 days after the occurrence of the 
        vacancy. Any individual appointed to fill a vacancy 
        occurring prior to the expiration of any term of office 
        shall be appointed for the remainder of that term.
          (4) Nomination of appointees.--The Board may 
        recommend to the Secretary individuals to be appointed 
        as Directors of the Board.

           *       *       *       *       *       *       *


SEC. 4. RIGHTS AND OBLIGATIONS OF THE FOUNDATION.

  (a) * * *

           *       *       *       *       *       *       *

  (c) Powers.--To carry out its purposes under section 2, the 
Foundation shall have, in addition to the powers otherwise 
given it under this Act, the usual powers of a corporation 
acting as a trustee in the District of Columbia, including the 
power--
          (1) * * *

           *       *       *       *       *       *       *

          (3) to invest any funds provided to the Foundation by 
        the Federal Government in obligations of the United 
        States or in obligations or securities that are 
        guaranteed or insured by the United States;
          (4) to deposit any funds provided to the Foundation 
        by the Federal Government into accounts that are 
        insured by an agency or instrumentality of the United 
        States;
          (5) to make use of any interest or investment income 
        that accrues as a consequence of actions taken under 
        paragraph (3) or (4) to carry out the purposes of the 
        Foundation;
          (6) to provide Federal funds for the purpose of 
        entering into cooperative agreements with willing 
        private landowners for restoration and enhancement of 
        fish, wildlife, and other natural resources on public 
        or private land, or both, if such cooperative 
        agreements--
                  (A) provide general conservation benefits; or
                  (B) benefit fish, wildlife, or other natural 
                resources on public land;
          (7) to accept and manage funds provided by any 
        Federal agency under any other law when it is in the 
        public interest;
          [(3)] (8) unless otherwise required by the instrument 
        of transfer, to sell, donate, lease, invest, reinvest, 
        retain or otherwise dispose of any property or income 
        therefrom;
          [(4)] (9) to borrow money and issue bonds, 
        debentures, or other debt instruments;
          [(5)] (10) to sue and be sued, and complain and 
        defend itself in any court of competent jurisdiction, 
        except that the Directors of the Board shall not be 
        personally liable, except for gross negligence;
          [(6)] (11) to enter into contracts or other 
        arrangements with public agencies and private 
        organizations and persons and to make such payments as 
        may be necessary to carry out its functions; and
          [(7)] (12) to do any and all acts necessary and 
        proper to carry out the purposes of the Foundation.
For purposes of this Act, an interest in real property shall be 
treated as including, among other things, easements or other 
rights for preservation, conservation, protection, or 
enhancement by and for the public of natural, scenic, historic, 
scientific, educational, inspirational, or recreational 
resources. A gift, devise, or bequest may be accepted by the 
Foundation even though it is encumbered, restricted, or subject 
to beneficial interests of private persons if any current or 
future interest therein is for the benefit of the Foundation.
  [(d) Certain Lands, Waters, and Interests Not Subject to 
Condemnation.--No lands or waters, or interests therein, that 
are owned by the Foundation and are determined by the Director 
of the United States Fish and Wildlife Service or the Migratory 
Bird Conservation Commission, as the case may be, to be 
valuable for purposes of fish and wildlife conservation or 
management shall be subject to condemnation by any State or 
political subdivision, or any agent or instrumentality 
thereof.]
  (d) Expenditures for Printing or Capital Equipment.--The 
Foundation may not make an expenditure of Federal funds for 
printing or capital equipment that is greater than $10,000 
unless the expenditure is approved by the Federal agency that 
administers the Federal program under which the funds were 
provided.
  (e) Acquisition, Management and Disposal of Real Property.--
(1) The Foundation may only use Federal funds for the 
acquisition of interests in real property if--
          (A) the interest is a long-term property interest; 
        and
          [(B) the Director of the United States Fish and 
        Wildlife Service (hereinafter in this subsection 
        referred to as the ``Director'') consents to the 
        acquisition in writing.]
          (B) the Foundation notifies the Federal agency that 
        administers the program under which the funds were 
        provided of the proposed acquisition, and the agency 
        fails to object in writing to the proposed acquisition 
        within 60 days after the date of that notification.
  (2) The Foundation shall convey to the United States Fish and 
Wildlife Service for inclusion within the National Wildlife 
Refuge System any real property acquired by the Foundation in 
whole or in part with Federal funds if [the Director] the head 
of the Federal agency that administers the program under which 
the funds were provided, within 1 year after the date on which 
the property was acquired by the Foundation, requests the 
conveyance in writing.
  (3)(A) Subject to subparagraph (B), the Foundation may--
          (i) * * *

           *       *       *       *       *       *       *

  (B) The Foundation may only make a conveyance or provide 
Federal funds under subparagraph (A) if--
          (i) * * *
          [(ii) the Director finds that conveyance or provision 
        of Federal funds meets the requirements of clause (i) 
        and consents to it in writing.]
          (ii) the Foundation notifies the Federal agency that 
        administers the Federal program under which the funds 
        were provided of the proposed conveyance or provision 
        of Federal funds, and the head of the agency fails to 
        object in writing to such proposed conveyance or 
        provision of Federal funds within 60 days after the 
        date of that notification.

           *       *       *       *       *       *       *

  [(5) The Foundation shall convey at not less than fair-market 
value any real property acquired by it in whole or in part with 
Federal funds if the Foundation and the Director determine, in 
writing, that--
          [(A) the land is no longer valuable for the purposes 
        of fish and wildlife conservation or management; and
          [(B) the purposes of the Foundation would be better 
        served by the use of the Federal funds for other 
        authorized activities of the Foundation.]
  (5) The Foundation shall convey at not less than fair market 
value any real property acquired by it in whole or in part with 
Federal funds if the Foundation notifies the Federal agency 
that administers the Federal program under which the funds were 
provided, and the agency fails to disagree within 60 days after 
the date of that notification, that--
          (A) the property is no longer valuable for the 
        purposes of fish and wildlife conservation or 
        management; and
          (B) the purposes of the Foundation would be better 
        served by the use of the proceeds of the conveyance for 
        authorized activities of the Foundation.

           *       *       *       *       *       *       *


SEC. 10. AUTHORIZATION OF APPROPRIATIONS.

  [(a) Authorization.--There are authorized to be appropriated 
to the Department of the Interior $25,000,000 for each of 
fiscal years 1994, 1995, 1996, 1997, and 1998.]
  (a) Authorization.--There are authorized to be appropriated 
to the Secretary of the Interior and the Secretary of Commerce, 
in the aggregate, $25,000,000 for fiscal year 1999.
  (b) Use of Amounts Appropriated.--(1) Subject to paragraph 
(2), amounts appropriated under this section shall be made 
available to the Foundation for use for [matching, in whole or 
in part,] matching, on a one-to-one basis, contributions 
(whether in currency, services, or property) made to the 
Foundation by private persons and State and local government 
agencies.
  (2) No Federal funds authorized under this section shall be 
used by the Foundation for administrative expenses of the 
Foundation, including for salaries, travel and transportation 
expenses, and other overhead expenses.
  (3)(A) Amounts provided as a grant by the Foundation shall 
not be used for--
          (i) expenses related to litigation; or
          (ii) any activity the purpose of which is to 
        influence legislation pending before the Congress.
  (B) Subparagraph (A)(ii) shall not be considered to prohibit 
officers or employees of the Foundation from communicating to 
Members or staff of Congress requests for legislation that they 
consider necessary for the efficient conduct of the business of 
the Foundation or that relates to the authority of the 
Foundation, appropriations for use by the Foundation, or use of 
Federal funds by the Foundation.
  (4) Amounts provided as a grant by the Foundation shall not 
be used for any activity related to the introduction of wolves 
or grizzly bears in Idaho, Montana, Utah, or Wyoming.
  [(c) Additional Authorization.--The amounts authorized to be 
appropriated under this section are in addition to any amounts 
provided or available to the Foundation under any other Federal 
law.]
                              ----------                              


         SECTION 304 OF THE WILD BIRD CONSERVATION ACT OF 1992

[SEC. 304. NATIONAL FISH AND WILDLIFE FOUNDATION.

  [Beginning in fiscal year 1993 and hereafter, the National 
Fish and Wildlife Foundation may continue to draw down Federal 
funds when matching requirements have been met: Provided, That 
interest earned by the Foundation and its subgrantees on funds 
drawn down to date, but not immediately disbursed, shall be 
used to fund all activities as approved by the Board of 
Directors: Provided further, That the Foundation's subgrantees 
shall be exempt from the audit reporting and compliance 
requirements of OMB Circular A-133, for all grants of $100,000 
or less. The Foundation shall amend its grant contracts to 
ensure that its subgrantees are advised and certify that they 
will comply with all applicable Federal laws and regulations 
imposed on individuals or organizations receiving Federal 
funds.]

                            DISSENTING VIEWS

    It is with great regret that we find ourselves in the 
position of opposing H.R. 2376 as reported by the Committee. 
Historically, the excellent programs of the National Fish and 
Wildlife Foundation have had the strong support of Members of 
Congress on both sides of the aisle since the Foundation's 
inception in 1984.
    We supported H.R. 2376 as introduced and as reported by the 
Subcommittee on Fisheries Conservation, Wildlife, and Oceans 
last October 23. Unfortunately, the amendments adopted by the 
full Resources Committee have transformed what should have been 
a straightforward reauthorization of a popular program into a 
partisan platform with the objective of undermining the 
Endangered Species Act (ESA).
    One of the amendments adopted by the Committee would 
prohibit the Foundation from funding any activities related to 
the reintroduction of wolves or grizzly bears in Idaho, 
Montana, Utah, and Wyoming. The other amendment would reduce 
the authorization period for the Foundation to one year. Both 
seriously undermine the fundamental integrity of the 
Foundation's ability to do its job.
    The National Fish and Wildlife Foundation is an 
established, competitive grant-making organization with a long 
history of funding successful conservation projects throughout 
the United States. It has never, to our knowledge, been accused 
of anything but objective selection of its projects. Moreover, 
the Foundation has always had broad, bipartisan support, until 
the last Congress, when a few Members began investigating any 
activities related to the Endangered Species Act.
    Ironically, the Foundation has not funded any grizzly bear 
reintroduction efforts, though it has funded research and 
education programs on the prevention of human/grizzly bear 
interactions. In addition, the Foundation has awarded less than 
$100,000 worth of projects related to the reintroduction of 
wolves.
    However, the point of our concern is not whether the 
Foundation has funded a particular project or the amount of the 
grant in question, but whether Members of Congress should be 
second-guessing a competitive grant-making process that has 
resulted in more than 2000 successful projects over the past 14 
years with virtually no controversy. The review of 
scientifically based conservation funding should not be the 
role of Congress, but the role of peer reviewers, as both the 
supporters and the critics of the Endangered Species Act have 
stressed throughout the ESA reauthorization debate. If Congress 
establishes the dangerous precedent of choosing those programs 
that are and are not acceptable for funding, the integrity of 
the grant making process is permanently compromised. If the 
sponsors of this amendment have concerns about the 
reintroduction of wolves and grizzly bears pursuant to the ESA, 
they should frame that debate within the context of the 
reauthorization of that law.
    Reducing the reauthorization of the Foundation to one year 
is likely to have a severely detrimental effect on the 
Foundation's ability to conduct its programs. While the 
proponents of this measure argue that it is merely a tool to 
provide Congress with greater oversight of the Foundation, its 
practical effect will be to restrict the fund-raising and 
grant-making capabilities of the Foundation.
    As we know, an expiring authorization is not necessary to 
prompt oversight. As an example, the Resources Committee 
conducted an oversight hearing into the operations of the 
Foundation in 1996, two years before the implementing 
legislation was set to expire and at the behest of the Members 
that sponsored these weakening amendments. While this amendment 
does not provide any additional oversight capability, it does 
make it difficult--if not impossible--for the Foundation to 
conduct any long term planning or to leverage private dollars.
    Over the past fourteen years the Foundation has matched 
federal dollars with private donations on a two-to-one basis, 
ensuring that federal appropriations have a far greater impact. 
With only a one year reauthorization, it will be difficult for 
the Foundation to demonstrate the long term planning needed to 
raise private matching funds, seriously limiting grant-making 
programs, including programs that may have some direct or 
indirect relationship to endangered species. We suspect that 
this is the real goal of the amendment.
    In conclusion, the Foundation has always experienced broad, 
bipartisan support on both sides of the aisle and throughout 
the U.S. for doing the job it was established to do in a fair 
and unbiased manner. It is unnecessary to adopt these measures 
now as part of the reauthorization legislation, thereby sending 
the signal that the Congress is suddenly planning to second-
guess the good work that the Foundation has done.
    If this institution wants to debate the merits of the 
Endangered Species Act and its related programs, we should do 
it within the context of that law, not this legislation. 
Therefore, while we continue to support the underlying goal of 
reauthorizing the Foundation and its programs, we must 
reluctantly oppose the bill reported by the Committee.

                                   George Miller.
                                   Neil Abercrombie.
                                   Maurice D. Hinchey.
                                   Frank Pallone, Jr.
                                   Sam Farr.
                                   Bruce F. Vento.
                                   Edward J. Markey.
                                   Eni Faleomavaega.
                                   Patrick J. Kennedy.

                                
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