article: SECTION 1. FINDINGS. Congress finds that the conveyance of the Properties described in section 4(b) to the Lessees of those Properties for fair market value would have the beneficial results of-- (1) reducing Pick-Sloan project debt for the Canyon Ferry Unit; (2) providing a permanent source of funding for projects that develop and maintain public recreation, and that conserve and enhance fish and wildlife opportunities in the State of Montana; (3) eliminating Federal payments in lieu of taxes and associated management expenditures in connection with the Government's ownership of the Properties while increasing local tax revenues from the new owners; and (4) eliminating expensive and contentious disputes between the Secretary and leaseholders while ensuring that the Federal Government receives full and fair value for the acquisition of the Properties. SEC. 2. PURPOSE. The purpose of this Act is to establish terms and conditions under which the Secretary of the Interior shall, for fair market value, convey certain Properties around Canyon Ferry Reservoir, Montana, to the Lessees of those Properties. SEC. 3. DEFINITIONS. In this Act: (1) CFRA.--The term ``CFRA'' means the Canyon Ferry Recreation Association, Incorporated, a Montana corporation. (2) Lessee.--The term ``Lessee'' means the leaseholder of 1 of the Properties described in section 4(b) on the date of enactment of this Act and the leaseholder's heirs, executors, and assigns of their leasehold interest. (3) Property.--The term ``Property'' means any 1 of the cabin sites described in section 4(b). (4) Properties.--The term ``Properties'' means all 265 of the cabin sites (and related parcels) described in section 4(b). (5) Purchaser.--The term ``Purchaser'' means a person or entity, excluding CFRA, that purchases the 265 Properties under section 4. (6) Reservoir.--The term ``Reservoir'' means the Canyon Ferry Reservoir in the State of Montana. (7) Secretary.--The term ``Secretary'' means the Secretary of the Interior. (8) Trust.--The term ``Trust'' means the Canyon Ferry Lake Trust described in section 6. SEC. 4. SALE OF PROPERTIES. (a) In General.--Subject to subsection (c) and notwithstanding any other provision of law, the Secretary shall sell at fair market value-- (1) all right, title, and interest of the United States in and to all (but not fewer than all) of the Properties described in subsection (b), subject to valid existing rights; and (2) easements for-- (A) vehicular access to each Property; (B) access to and the use of 1 dock per Property; and (C) access to and the use of all boathouses, ramps, retaining walls, and other improvements for which access is provided in the leases as of the date of this Act. (b) Description of Properties.-- (1) In general.--The Properties to be conveyed are-- (A) the 265 cabin sites of the Bureau of Reclamation located along the northern portion of the Reservoir in portions of sections 2, 11, 12, 13, 15, 22, 23, and 26, Township 10 North, Range 1 West; plus (B) any small parcels contiguous to the Properties (not including shoreline land needed to provide public access to the shoreline of the Reservoir) that the Secretary determines should be conveyed in order to eliminate inholdings and facilitate administration of surrounding land remaining in Federal ownership. (2) Acreage; legal description.--The acreage and legal description, including any related parcels determined by the Secretary under (b)(1)(B) of this section, of each Property shall be agreed on by the Secretary and CFRA. (c) Purchase Process.-- (1) In general.--The Secretary shall-- (A) solicit sealed bids for the Properties; (B) subject to paragraph (2), sell the Properties to the bidder that submits the highest bid above the minimum bid determined under paragraph (2); and (C) no bid shall be accepted for less than all of the Properties in one bundle. (2) Minimum bid.--Before accepting bids, the Secretary, in consultation with CFRA, shall establish a minimum bid based on an appraisal of the fair market value of the Properties, exclusive of the value of private improvements made by the leaseholders before the date of the conveyance by means of an appraisal conducted in conformance with the Uniform Standards of Professional Appraisal Practice. (3) Right of first refusal.--If the highest bidder is other than CFRA, CFRA shall have the right to match the highest bid and purchase the Properties at a price equal to the amount of that bid. (d) Terms of Conveyance.-- (1) Purchaser to extend option to purchase or to continue leasing. (A) In general.--The Purchaser shall give each leaseholder of record of a Property conveyed under this section an option to purchase the Property at fair market value as determined in subsection (c)(2). (B) Nonpurchasing lessees.-- (i) Right to continue lease.--A Lessee that is unable or unwilling to purchase a Property shall be permitted to continue to lease the Property for fair market value rent under the same terms and conditions as the existing leases, including the right to renew the term of the existing lease for 2 consecutive 5-year terms. (ii) Compensation for improvements.--If a Lessee declines to purchase a Property, the Purchaser shall compensate the Lessee for the fair market value, as determined pursuant to customary appraisal procedures, of all improvements made to the Property. The Lessee may sell the improvements to Purchaser at any time, but the sale shall be completed by the final termination of the lease, after all renewals as provided in clause (i). (2) Historical use.--The Purchaser shall honor the existing Property descriptions and historical use restrictions for the leaseholds. (3) CFRA purchases.--If CFRA should be the highest bidder, or match the highest bid, it may convey to the Trust in lieu of money, the title to any Property where the Lessee is unable or unwilling to purchase their Property. (A) Continuation of leases.-- (i) In general.--A Lessee that is unable or unwilling to purchase a leasehold shall be permitted to continue to lease the Property pursuant to the terms and conditions of the lease, existing on the date of enactment of this Act, from the Trust. (ii) Rental payments.--All rents received during the continuation of a lease under clause (i) shall be paid to the Trust. (iii) Limitation on right to transfer lease.--Subject to valid existing rights, a Lessee may not sell or otherwise assign or transfer the leasehold without purchasing the Property from the Trust and conveying the fee interest in the Property. (B) Conveyances by trust.--All conveyances by the Trust shall be a fair market value as determined by a new appraisal, but in no event may the Trust convey any Property to Lessee for an amount less than the value established for the leasehold by the appraisal conducted pursuant to subparagraph (c)(2). (e) Administrative Costs.--Any reasonable administrative cost incurred by the Secretary incident to the conveyance under subsection (a) shall be reimbursed by the Purchaser or CFRA. (f) Timing.--The Secretary shall make every effort to complete the conveyance under subsection (a) not later than 1 year after the date of enactment of this Act. (g) Closing.--Real estate closings to complete the conveyance under subsection (a) may be staggered to facilitate the conveyance as agreed to by the Secretary and the Purchaser or CFRA. (h) Conveyance to Lessee.--Where the Lessee will purchase the Property from the Purchaser or CFRA, the Lessee may request the Secretary to have the conveyance documents prepared in the Lessee's name or names in order to minimize the time and documents required to complete the closing for each Property. (i) Costs.--The Lessee shall reimburse CFRA for a proportionate share of the costs to CFRA in completing the transactions contemplated by this Act, including any interest charges. (j) Costs.--The Lessee shall reimburse the Trust for a proportionate share of the costs to the Trust in completing the transactions contemplated by this Act, including any interest charges. In addition, the lessee shall reimburse the Trust for all costs, including the new appraisal, associated with conveying the Property from the Trust to the Lessee. SEC. 5. AGREEMENT. (a) Requirement To Negotiate.--The Secretary, acting through the Bureau of Reclamation, shall negotiate an agreement with the Broadwater County, Montana, Board of Commissioners to transfer management of the Silo's and White Earth recreation areas. The Secretary shall grant an easement for an access road to these recreation areas. (b) Assessment of Need for Harbor.--Not later than 6 months after the date of the enactment of this Act, the Secretary, acting through the Bureau of Reclamation, shall assess the need for creating a harbor adjacent to the eastern shore of the south half of the Reservoir. SEC. 6. USE OF PROCEEDS. (a) In General.--Proceeds of conveyances under this Act shall be available as follows: (1) 10 percent of the proceeds shall be applied by the Secretary of the Treasury to reduce the outstanding debt for the Pick-Sloan project at Canyon Ferry Reservoir. (2) 45 percent of the proceeds shall be deposited into a separate account in the Treasury and shall be available to the Secretary, subject to appropriations, for purchasing land or conservation easements in the State of Montana. (3) 45 percent of the proceeds shall be available without further appropriation to the Canyon Ferry Lake Trust established under subsection (b) for the purposes of enhancing recreation, fisheries, and conservation in and around the Reservoir. (b) In lieu of a cash contribution to the Trust under section 6(a)(3), CFRA may convey to the Trust the fee title for any Property not purchased by the Lessee. The value of each Property contribution under this paragraph shall be the fair market value of the Property under section 4 of this Act. (c) Canyon Ferry Lake Trust.--(1) There shall be established an entity to be known as the Canyon Ferry Lake Trust, the corpus of which shall initially include, at a minimum, the following funds: (A) One-third of amounts received by the Trust under (6)(a)(3) shall be made available by the Trust to Broadwater County, Montana, to improve access in the Broadwater County portion of the Reservoir. (B) Two-thirds of amounts received by the Trust under (6)(a)(3) shall be deposited into a permanent endowment that may be used in the following manner: (i) Fisheries improvement. (ii) Improvement of campgrounds. (iii) Lakeshore conservation, conservation easements, and public access to Canyon Ferry Reservoir and the watershed of the Missouri River from Canyon Ferry Dam to the confluence of the Madison, Jefferson, and Gallatin Rivers. (2) The Canyon Ferry Lake Trust shall be advised by a board composed of representatives from the following: (A) One appointee for the County Commission of Broadwater County, Montana. (B) One appointee for the County Commission of Lewis and Clark County, Montana. (C) One local agricultural landowner, as agreed to by Lewis and Clark and Broadwater County Commissions, Montana. (D) One representative of a local hunting organization, as agreed to by the Lewis and Clark and Broadwater County Commissions, Montana. (E) One representative of a fisheries conservation organization, as agreed to by Lewis and Clark and Broadwater Counties, Montana. (F) One representative appointed by the Commissioner of the Bureau of Reclamation or his or her designee. (G) One representative appointed by The Director of the Montana Fish, Wildlife and Parks Department or his designee.
summary: Directs the Secretary of the Interior to sell at fair market value 265 cabin sites and related appurtenances around the Canyon Ferry Reservoir, Montana. Requires: (1) a sealed bidding process for such sale; (2) a required minimum bid to be met; and (3) the Canyon Ferry Recreation Association to have the right to match the highest bid offered for such properties. Outlines other conveyance terms, including: (1) allowing individual cabin leaseholders who cannot purchase their site to continue to lease such site for two consecutive five-year periods; and (2) directing the Secretary to complete the conveyance within one year after enactment of this Act. Directs the Secretary to: (1) negotiate an agreement with the Broadwater County, Montana, Board of Supervisors to transfer management of the Silo's and White Earth recreation areas; and (2) assess the need for creating a harbor adjacent to the eastern shore of the south half of the Reservoir. Establishes the Canyon Ferry Lake Trust for the deposit and use of funds for various improvements to the Reservoir and Canyon Ferry area.