[House Report 106-928]
[From the U.S. Government Publishing Office]



106th Congress                                                   Report
                        HOUSE OF REPRESENTATIVES
 2d Session                                                     106-928

======================================================================



 
PROVIDING FOR ALL RIGHT, TITLE, AND INTEREST IN AND TO CERTAIN PROPERTY 
     IN WASHINGTON COUNTY, UTAH, TO BE VESTED IN THE UNITED STATES

                                _______
                                

October 3, 2000.--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

                            ADDITIONAL VIEWS

                        [To accompany H.R. 4721]

      [Including cost estimate of the Congressional Budget Office]

  The Committee on Resources, to whom was referred the bill 
(H.R. 4721) to provide for all right, title, and interest in 
and to certain property in Washington County, Utah, to be 
vested in the United States, 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 all after the enacting clause and insert the 
following:

SECTION 1. ACQUISITION OF CERTAIN PROPERTY IN WASHINGTON COUNTY, UTAH.

  (a) In General.--Notwithstanding any other provision of law, 
effective 30 days after the date of the enactment of this Act, all 
right, title, and interest in and to, and the right to immediate 
possession of, the 1,516 acres of real property owned by the 
Environmental Land Technology, Ltd. (ELT) within the Red Cliffs Reserve 
in Washington County, Utah, and the 34 acres of real property owned by 
ELT which is adjacent to the land within the Reserve but is landlocked 
as a result of the creation of the Reserve, is hereby vested in the 
United States.
  (b) Compensation for Property.--Subject to section 309(f) of the 
Omnibus Parks and Public Lands Management Act of 1996 (Public Law 104-
333), the United States shall pay just compensation to the owner of any 
real property taken pursuant to this section, determined as of the date 
of the enactment of this Act. An initial payment of $15,000,000 shall 
be made to the owner of such real property not later than 30 days after 
the date of taking. The full faith and credit of the United States is 
hereby pledged to the payment of any judgment entered against the 
United States with respect to the taking of such property. Payment 
shall be in the amount of--
          (1) the appraised value of such real property as agreed to by 
        the land owner and the United States, plus interest from the 
        date of the enactment of this Act; or
          (2) the valuation of such real property awarded by judgment, 
        plus interest from the date of the enactment of this Act, 
        reasonable costs and expenses of holding such property from 
        February 1990 to the date of final payment, including damages, 
        if any, and reasonable costs and attorneys fees, as determined 
        by the court. Payment shall be made from the permanent judgment 
        appropriation established pursuant to section 1304 of title 31, 
        United States Code, or from another appropriate Federal 
        Government fund.
Interest under this subsection shall be compounded in the same manner 
as provided for in section 1(b)(2)(B) of the Act of April 17, 1954, 
(Chapter 153; 16 U.S.C. 429b(b)(2)(B)) except that the reference in 
that provision to ``the date of the enactment of the Manassas National 
Battlefield Park Amendments of 1988'' shall be deemed to be a reference 
to the date of the enactment of this Act.
  (c) Determination by Court in Lieu of Negotiated Settlement.--In the 
absence of a negotiated settlement, or an action by the owner, the 
Secretary of the Interior shall initiate within 90 days after the date 
of the enactment of this section a proceeding in the United States 
Federal District Court for the District of Utah, seeking a 
determination, subject to section 309(f) of the Omnibus Parks and 
Public Lands Management Act of 1996 (Public Law 104-333), of the value 
of the real property, reasonable costs and expenses of holding such 
property from February 1990 to the date of final payment, including 
damages, if any, and reasonable costs and attorneys fees.

                          PURPOSE OF THE BILL

    The purpose of H.R. 4721 is to provide for all right, 
title, and interest in and to certain property in Washington 
County, Utah, to be vested in the United States.

                  BACKGROUND AND NEED FOR LEGISLATION

    H.R. 4721 would provide that all right, title, and interest 
in a piece of property, located in Washington County, Utah, be 
transferred to the federal government. In 1983, Environmental 
Land Technology, Ltd. (ELT) acquired from the State of Utah 
2,440 acres of school trust lands located just north of St. 
George, Utah, for residential and recreational development. ELT 
began to develop the property by purchasing water rights, and 
conducting a series of appraisals, cost estimates, surveys, 
etc. However, in 1990, the desert tortoise was listed as an 
endangered species under the Endangered Species Act, and, in 
1996, following the issuance of the Habitat Conservation Plan 
and Implementation Agreement, the Bureau of Land Management 
(BLM) of the Department of the Interior assumed an obligation 
to acquire from willing sellers approximately 12,600 acres of 
non-federal land, including the ELT lands, to create the Red 
Cliffs Reserve for the protection of the desert tortoise. Since 
that time, the BLM has been able to acquire, through exchanges 
or direct purchases, nearly all of the privately-owned property 
in the area except for the 1,516 acres owned by ELT. From the 
outset, the Department of the Interior has characterized the 
acquisition of the ELT lands as a high priority. However, BLM 
no longer has sufficient comparable lands within the State of 
Utah to conduct an intrastate land exchange with ELT and the 
resulting delay in purchasing these lands has imposed an 
extreme financial hardship on the owner. This legislative 
taking would include the 1,516 acres located within the Reserve 
and 34 acres adjacent to the Reserve, which is land-locked 
because of the creation of the Reserve. All of this property is 
owned by ELT. H.R. 4721 would authorize the United States to 
acquire the title to this property, thereby eliminating the 
last major private inholding within the Red Cliffs Reserve.
    Under H.R. 4721, thirty days after enactment, an initial 
payment of $15 million would be given to the land owners for 
compensation of the land, and title would be transferred to the 
federal government. The remaining balance owed by the 
government would be paid in cash after a determination of that 
amount either through negotiations between the land owners and 
the federal government or by the Federal District Court of Utah 
if the parties cannot reach an agreement within 90 days. If the 
fair market value of the lands is determined by the Court, the 
Court may also consider the cost and expenses of holding the 
land and damages, if any. Payment shall be made from the 
permanent judgment appropriation fund (31 U.S. Code 1304) or 
other appropriate federal government funds.
    During consideration of the measure, an amendment was 
adopted which addressed the issues raised by the Department of 
the Interior in its testimony before the Subcommittee on 
National Parks and Public Lands.

                            COMMITTEE ACTION

    H.R. 4721 was introduced by Congressman James Hansen (R-UT) 
on June 22, 2000. The bill was referred to the Committee on 
Resources, and within the Committee to the Subcommittee on 
National Parks and Public Lands. On July 13, 2000, the 
Subcommittee held a hearing on the bill. On September 20, 2000, 
the full Resources Committee met to consider the bill. The 
Subcommittee on National Parks and Public Lands was discharged 
from further consideration of the bill by unanimous consent. 
Congressman Hansen offered an amendment in the nature of a 
substitute which was adopted by voice vote. The bill, as 
amended, was then ordered favorably reported to the House of 
Representatives by voice vote.

            COMMITTEE OVERSIGHT FINDINGS AND RECOMMENDATIONS

    Regarding clause 2(b)(1) of rule X and clause 3(c)(1) of 
rule XIII of the Rules of the House of Representatives, the 
Committee on Resources' oversight findings and recommendations 
are reflected in the body of this report.

                   CONSTITUTIONAL AUTHORITY STATEMENT

    Article I, section 8 and Article IV section 3 of the 
Constitution of the United States grant Congress the authority 
to enact this bill.

                    COMPLIANCE WITH HOUSE RULE XIII

    1. Cost of Legislation. Clause 3(d)(2) 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 this bill. However, clause 3(d)(3)(B) 
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 402 of the 
Congressional Budget Act of 1974. A cost estimate was requested 
but not received at the time this report is filed. The 
Committee believes that the costs involved if this bill is 
enacted will have an insignificant effect on the federal 
budget.
    2. Congressional Budget Act. As required by clause 3(c)(2) 
of rule XIII of the Rules of the House of Representatives and 
section 308(a) of the Congressional Budget Act of 1974, this 
bill does not contain any new budget authority, credit 
authority, or an increase or decrease in revenues or tax 
expenditures. Enactment of this bill would require at a minimum 
the transfer of funds from the Judgment Fund established under 
31 U.S.C. 1304, or from another appropriate government fund.
    3. Government Reform Oversight Findings. Under clause 
3(c)(4) of rule XIII 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 on this bill.
    4. Congressional Budget Office Cost Estimate. Under clause 
3(c)(3) of rule XIII of the Rules of the House of 
Representatives and section 403 of the Congressional Budget Act 
of 1974, the Committee has requested but not received a cost 
estimate for this bill from the Director of the Congressional 
Budget Office.

                    COMPLIANCE WITH PUBLIC LAW 104-4

    This bill contains no unfunded mandates.

               PREEMPTION OF STATE, LOCAL, OR TRIBAL LAW

    This bill is not intended to preempt State, local, or 
tribal law.

                        CHANGES IN EXISTING LAW

    If enacted, this bill would make no changes in existing 
law.

                            ADDITIONAL VIEWS

    H.R. 4721 is a highly unusual measure which raises a number 
of serious issues. The bill is a legislative taking that 
provide that upon enactment, all right, title, and interest in 
1550 acres of private lands will vest in the United States. 
This is an extraordinary procedure. Only a few times in the 
past quarter century has a legislative taking been used by the 
Congress. Further, the language of the legislation is 
substantially different from that used in other cases.
    There is considerable controversy associated with the land 
identified by the legislation. Several news articles in Utah 
have called into question actions by the landowner with regards 
to this property. Title has been clouded to this land and it is 
unclear what interests the landowner has and what interests 
other parties have to the property in question.
    As the Administration noted in its testimony opposing H.R. 
4721, the bill provides preferential treatment to one landowner 
and provides compensation above and beyond that received by 
other landowners. Further, the bill forces the Federal 
Government to acquire an adjacent 34-acre parcel that it has 
neither sought to acquire nor does it need.
    Bill supporters have accused the Bureau of Land Management 
of foot-dragging on this acquisition. However, these same 
supporters failed to get Congressional appropriations earmarked 
for this acquisition. Despite this BLM has negotiated with the 
landowner. These negotiations have been hampered by the 
landowner's insistence on using appraisal assumptions that are 
inconsistent with Federal standards and that were not used in 
other transactions, including those done previously with the 
landowner.
    Before we take the extraordinary step of a legislative 
taking, we should know who benefits and how. Further if we take 
such a step it should be consistent with what has been done in 
the past and not create new legal precedents or provide special 
benefits.

                                                     George Miller.

                                  
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