text: 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.
target: 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.
feat_title: A bill to establish terms and conditions under which the Secretary of the Interior shall convey leaseholds in certain Properties around Canyon Ferry Reservoir, Montana.