A bill to provide for the preservation and sustainability fo the family farm through the transfer of responsibility for operation and maintenance of the Flathead Irrigation Project, Montana.

Summary: Directs the Secretary of the Interior, within one year after the enactment of this Act, to offer to enter into a contract with the irrigation district for the Flathead Indian Reservation, Montana, under which the district will operate and manage the Flathead Indian Irrigation Project, including the right to use permanent easements purchased under a prior Act.  Outlines contract requirements, including U.S. fulfillment of trust responsibilities to such Tribe, the maintenance of water flows, and the continuation of certain existing cost repayment obligations.

SECTION 1. TRANSFER OF RESPONSIBILITY FOR OPERATION AND MAINTENANCE OF 
              THE FLATHEAD IRRIGATION PROJECT, MONTANA.

    (a) Purpose.--The purpose of this Act is to preserve and protect 
the viability and sustainability of the family farms and ranches of the 
Jocko Valley, Camas Valley, and Mission Valley, Montana, through the 
transfer of responsibility for operation and maintenance of the 
Irrigation Division of the Flathead Irrigation Project, Montana, 
without having any effect on the negotiation or adjudication of water 
rights, including those of the tribe.
    (b) Definitions.--In this Act:
            (1) Contract.--The term ``contract'' means the contract 
        under subsection (c).
            (2) Irrigation district.--The term ``irrigation district'' 
        means 1 or more irrigation districts organized in accordance 
        with the paragraph relating to the irrigation systems on the 
        Flathead Indian Reservation, Montana, under the subheading 
        ``irrigation and drainage'' under the heading ``BUREAU OF 
        INDIAN AFFAIRS'' in the Act of May 10, 1926 (44 Stat. 464, 
        chapter 277).
            (3) Project.--The term ``project'' means the Irrigation 
        Division of the Flathead Irrigation Project constructed under 
        section 14 of the Act of April 23, 1904 (33 Stat. 305, chapter 
        1495), and section 14 of the Act of May 29, 1908 (35 Stat. 450, 
        chapter 216).
            (4) Secretary.--The term ``Secretary'' means the Secretary 
        of the Interior.
            (5) Tribe.--The term ``Tribe'' means the Confederated 
        Salish and Kootenai Tribes of the Flathead Nation, a federally 
        recognized tribe organized under section 16 of the Act of June 
        18, 1934 (25 U.S.C. 476).
    (c) Contract.--
            (1) In general.--Not later than 1 year after the date of 
        enactment of this Act, the Secretary shall offer to enter into 
        a contract with the irrigation district under which the 
        irrigation district will operate and manage the project, 
        including all rights and powers exercised by the Secretary in 
        the operation of the project, including the right to use 
        permanent easements purchased under the Act of May 25, 1948 (62 
        Stat. 269, chapter 340).
            (2) Contract provisions.--The contract shall contain 
        provisions that--
                    (A)(i) identify the trust responsibilities of the 
                United States to the Tribe that are affected by the 
                operation and maintenance of the Irrigation Division; 
                and
                    (ii) ensure that the United States will be able to 
                fulfill those responsibilities;
                    (B) ensure that in operating and maintaining the 
                project, the irrigation district will maintain the 
                interim instream flows established by the Bureau of 
                Indian Affairs to preserve fisheries pending 
                adjudication of water rights and, thereafter, as 
                required by any rulings made in connection with the 
                adjudication or related negotiation;
                    (C) ensure that obligations in existence on the 
                date of enactment of this Act governing the repayment 
                of the construction costs of the project are continued 
                unaffected by this Act and the contract, if the 
                irrigation district makes an accelerated payment of 
                $1,000,000 on the repayment contract between the 
                irrigation district and the United States not later 
                than December 31, 2001;
                    (D) amend the repayment contracts in effect on the 
                date of enactment of this Act between the irrigation 
                district and the United States to provide that net 
                revenues from the operation of the Power Division of 
                the project will not be used to pay operation and 
                maintenance costs of the Irrigation Division; and
                    (E) provide for revocation of the contract and of 
                the right of the irrigation district to operate and 
                maintain the project if a court of the United States 
                finds that the irrigation district has operated and 
                persists in operating the project in a manner that 
                willingly and knowingly damages tribal trust assets.
            (3) Protection of tribal trust assets.--For the purpose of 
        paragraph (2)(E)--
                    (A) operation of the project as the project was 
                operated by the Bureau of Indian Affairs plan of 
                operations in effect on October 31, 1997, shall be 
                presumed to provide adequate protection of tribal trust 
                assets and shall not be considered to damage those 
                assets; and
                    (B) any changes in operation required as a result 
                of new information, changes in administrative policies 
                or decisions, judicial decisions, or negotiations shall 
                not be a ground for revocation of the contract unless 
                the irrigation district refuses to conform the 
                operation and maintenance of the project to the 
                requirements of the new information, administrative 
                policies and decisions, judicial decisions, or 
                negotiations.
    (d) Timing.--The Secretary shall commence negotiations with the 
irrigation district as soon as practicable to enable the Secretary and 
the irrigation district to enter into a contract not later than 1 year 
after the date of enactment of this Act.
    (e) Property Rights.--
            (1) In general.--Under the contract, the Secretary shall 
        transfer to the irrigation district ownership of all equipment, 
        machinery, office supplies, and other supplies and equipment 
        paid for with operation and maintenance funds related to the 
        project.
            (2) Inventory list.--The Secretary shall provide the 
        irrigation district an inventory list of all supplies and 
        equipment at the project as of the date of enactment of this 
        Act that were purchased with operation and maintenance funds.
            (3) Real property.--Under the contract, the Secretary shall 
        not transfer to the irrigation district ownership of--
                    (A) any real property right to land or an interest 
                in land; or
                    (B) any water right.
    (f) Water Rights.--This Act does not affect the negotiation of 
water rights between the State of Montana, the United States, and the 
Tribe.