text: 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).
target: 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.
feat_title: Montana Fish and Wildlife Conservation Act of 1998