article: SECTION 1. SHORT TITLE. This Act may be cited as the ``Montana Fish and Wildlife Conservation Act of 1998''. SEC. 2. FINDINGS. Congress finds that-- (1) it is in the interest of the United States for the Secretary of the Interior to sell leaseholds at Canyon Ferry Reservoir in the State of Montana for fair market value if the proceeds from the sale are used-- (A) to establish a trust to provide a permanent source of funding to acquire access or other property interests from willing sellers to conserve fish and wildlife and to enhance public hunting and fishing opportunities at the Reservoir and along the Missouri River; (B) to establish a fund to be used to acquire access or other property interests from willing sellers to increase public access to Federal land in the State of Montana and to enhance hunting and fishing opportunities; and (C) to reduce the Pick-Sloan project debt for the Canyon Ferry Unit; (2) existing trusts in the State of Montana, including the Rock Creek Trust and the Montana Power Company Missouri-Madison Trust, have provided substantial public benefits by conserving fish and wildlife and by enhancing public hunting and fishing opportunities in the State of Montana; (3) many Federal lands in the State of Montana do not have suitable public access, and establishing a fund to acquire easements to those lands from willing sellers would enhance public hunting and fishing opportunities in the State of Montana; (4) the sale of the leaseholds at the Reservoir will reduce Federal payments in lieu of taxes and associated management expenditures in connection with the ownership by the Federal Government of the leaseholds while increasing local tax revenues from the new owners of the leased lots; and (5) the sale of the leaseholds at the Reservoir will reduce expensive and contentious disputes between the Federal Government and leaseholders, while ensuring that the Federal Government receives full and fair value for the acquisition of the property. SEC. 3. DEFINITIONS. In this Act: (1) CFRA.--The term ``CFRA'' means the Canyon Ferry Recreation Association, Incorporated, a Montana corporation. (2) Fund.--The term ``Fund'' means the Montana Hunter and Fisherman Access Fund established under section 6(a). (3) Lessee.--The term ``lessee'' means the holder of a leasehold described in section 4(b) as of the date of enactment of this Act, and the holder's heirs, executors, and assigns of the holder's leasehold interest. (4) Purchaser.--The term ``Purchaser'' means the person or entity that purchases the 265 leaseholds under section 4. (5) Reservoir.--The term ``Reservoir'' means the Canyon Ferry Reservoir in the State of Montana. (6) Secretary.--The term ``Secretary'' means the Secretary of the Interior. (7) Trust.--The term ``Trust'' means the Canyon Ferry- Missouri River Trust established under section 5(a). SEC. 4. SALE OF LEASEHOLDS. (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 leaseholds described in subsection (b), subject to valid existing rights; and (2) easements for-- (A) vehicular access to each leasehold; (B) access to and the use of 1 dock per leasehold; 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 Leaseholds.-- (1) In general.--The leaseholds 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 leaseholds (not including shoreline property or property 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 of each property shall be agreed on by the Secretary and the Purchaser. (c) Purchase Process.-- (1) In general.--The Secretary shall-- (A) solicit sealed bids for all of the leaseholds; and (B) subject to paragraph (2), sell the leaseholds to the bidder that submits the highest bid above the minimum bid determined under paragraph (2). (2) Minimum bid.--Before accepting bids, the Secretary, in consultation with interested bidders, shall establish a minimum bid based on an appraisal of the fair market value of the leaseholds, exclusive of the value of private improvements made by the leaseholders before the date of the conveyance, by means of an appraisal conducted in accordance with the appraisal procedures used under Federal law, including, to the extent practicable, the procedures specified in sections 2201.3 through 2201.3-5 of title 43, Code of Federal Regulations. (3) Right of first refusal.--If the highest bidder is other CFRA, CFRA shall have the right to match the highest bid and purchase the leaseholds at a price equal to the amount of that bid. (d) Conditions.-- (1) Consideration.--As consideration for the conveyance under subsection (a), the Purchaser shall-- (A) contribute to the Trust the amount that is equal to 45 percent of the purchase price of the leaseholds; (B) contribute to the Fund the amount that is equal to 45 percent of the purchase price of the leaseholds; and (C) pay the Secretary for deposit in the Treasury of the United States an amount that is equal to 10 percent of the purchase price of the leaseholds. (2) No charitable deduction.--The Purchaser, any owner, member, or other interest holder in the Purchaser, and any leaseholder shall not be entitled to a charitable deduction under the Internal Revenue Code of 1986 by reason of the making of the contribution under subparagraph (A) or (B) of paragraph (1). (3) Option to purchase.-- (A) In general.--The Purchaser shall give each leaseholder of record of a leasehold conveyed under this section an option to purchase the leasehold at fair market value. (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 leasehold, the Purchaser shall compensate the lessee for the full market value of the improvements made to the leasehold. (4) Historical use.--The Purchaser shall honor the existing property descriptions and historical use restrictions for the leaseholds, as determined by the Bureau of Reclamation. (e) Administrative Costs.--Any administrative cost incurred by the Secretary incident to the conveyance under subsection (a) shall be reimbursed by the Purchaser. SEC. 5. CANYON FERRY-MISSOURI RIVER TRUST. (a) Establishment.--The Secretary shall encourage establishment of a nonprofit charitable permanent perpetual trust, similar in structure and purpose to the existing trusts referred to in section 1(2), to be known as the ``Canyon Ferry-Missouri River Trust'', to provide a permanent source of funding to acquire land and interests in land from willing sellers at fair market value to conserve fish and wildlife, enhance public hunting and fishing opportunities, and improve public access at the Reservoir and along the Missouri River and its tributaries from the confluence of the Madison River, Gallatin River, and Jefferson River downstream to the Reservoir. (b) Board of Trustees.-- (1) Membership.--The trust referred to in subsection (a) shall have a Board of Trustees consisting of 1 representative of each of-- (A) local agricultural landowners; (B) a local hunting organization; (C) a statewide hunting organization; (D) a fisheries conservation organization; and (E) a nonprofit land trust or environmental organization. (2) Consultation.--In managing the Trust, the Board of Directors shall consult with representatives of-- (A) the Bureau of Reclamation; (B) the Forest Service; (C) the Bureau of Land Management; (D) the United States Fish and Wildlife Service; (E) the Montana Department of Fish, Wildlife, and Parks; (F) the Montana Science Institute at Canyon Ferry, Montana; and (G) local governmental bodies (including the Lewis and Clark and Broadwater County Commissioners). (c) Use.-- (1) Principal.--The principal amount of the Trust shall be inviolate. (2) Earnings.--Earnings on amounts in the Trust shall be used to carry out subsection (a) and to administer the Trust. (d) Management.--Land and interests in land acquired under this section shall be managed for the purposes described in subsection (a). SEC. 6. MONTANA HUNTER AND FISHERMAN ACCESS FUND. (a) Establishment.--There is established in the Treasury of the United States an interest-bearing account, to be known as the ``Montana Hunter and Fisherman Access Fund'', for the purpose of acquiring land and interests in land in the State of Montana from willing sellers at fair market value to-- (1) improve public access to Federal land in the State of Montana for hunting or fishing; and (2) enhance public hunting and fishing opportunities in the State of Montana through the conservation of fish and wildlife. (b) Use.-- (1) Principal.--The principal amount of the Fund shall be inviolate. (2) Earnings.-- (A) In general.--Earnings on amounts in the Fund shall be used to carry out subsection (a). (B) Administration.--The earnings shall be used at the joint direction of-- (i) the Chief of the Forest Service; (ii) the Director of the Bureau of Land Management; and (iii) the Director of the United States Fish and Wildlife Service. (c) Management.--Land and interests in land acquired under this section shall be managed for the purposes described in subsection (a).
summary: Montana Fish and Wildlife Conservation Act of 1998 - Directs the Secretary of the Interior to sell at fair market value: (1) all right, title, and interest of the United States in and to specified leaseholds (cabin sites of the Bureau of Reclamation located in the Canyon Ferry Reservoir in Montana and certain contiguous parcels), subject to valid existing rights; and (2) easements for specified access to such leaseholds. Sets forth requirements for the purchase process. Grants the Canyon Ferry Recreation Association, Incorporated, the right to match the highest bid and purchase the leaseholds. Requires the leasehold purchaser to: (1) contribute 45 percent of the purchase price to each of the Canyon Ferry-Missouri River Trust and the Montana Hunter and Fisherman Access Fund (established by this Act); and (2) pay ten percent of the purchase price to the Secretary for deposit in the Treasury. Gives existing leaseholders an option to purchase leaseholds and nonpurchasing lessees the right to continue to lease the property under the same terms provided in existing leases. Requires the Secretary to encourage establishment of a nonprofit charitable permanent perpetual trust, to be known as the Canyon Ferry-Missouri River Trust, to provide a permanent source of funding to acquire land to conserve fish and wildlife, enhance public hunting and fishing opportunities, and improve public access at the Reservoir and along the Missouri River. Establishes the Montana Hunter and Fisherman Access Fund in the Treasury for purposes of acquiring land in Montana to improve public access to Federal land for hunting or fishing and enhance public hunting and fishing opportunities through the conservation of fish and wildlife.