SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Palmetto Bend Conveyance Act''.

SEC. 2. DEFINITIONS.

    In this Act:
        (1) Project.--the term ``Project'' means the Palmetto Bend 
    Reclamation Project in the State of Texas authorized under Public 
    Law 90-562 (82 Stat. 999).
        (2) Secretary.--The term ``Secretary'' means the Secretary of 
    the Interior.
        (3) State.--The term ``State'' means the State of Texas, acting 
    through the Texas Water Development Board or the Lavaca-Navidad 
    River Authority or both.

SEC. 3. CONVEYANCE.

    (a) In General.--The Secretary shall, as soon as practicable after 
the date of enactment of this Act and in accordance with all applicable 
law, and subject to the conditions set forth in sections 4 and 5, 
convey to the State all right, title and interest (excluding the 
mineral estate) in and to the Project held by the United States.
    (b) Report.--If the conveyance under section 3 has not been 
completed within 1 year and 180 days after the date of enactment of 
this Act, the Secretary shall submit to the Committee on Resources of 
the House of Representatives and the Committee on Energy and Natural 
Resources of the Senate a report that describes--
        (1) the status of the conveyance;
        (2) any obstacles to completion of the conveyance; and
        (3) the anticipated date for completion of the conveyance.

SEC. 4. PAYMENT.

    (a) In General.--As a condition of the conveyance, the State shall 
pay the Secretary the adjusted net present value of current repayment 
obligations on the Project, calculated 30 days prior to closing using a 
discount rate equal to the average interest rate on 30-year United 
States Treasury notes during the preceding calendar month, which 
following application of the State's August 1, 1999 payment, was, as of 
October 1999, calculated to be $45,082,675 using a discount rate of 
6.070 percent. The State shall also pay interest on the adjusted net 
present value of current repayment obligations from the date of the 
State's most recent annual payment until closing at the interest rate 
for constant maturity United States Treasury notes of an equivalent 
term.
    (b) Obligation Extinguished.--Upon payment by the State under 
subsection (a), the obligation of the State and the Bureau of 
Reclamation under the Bureau of Reclamation Contract No. 14-06-500-
1880, as amended shall be extinguished. After completion of conveyance 
provided for in section 3, the State shall assume full responsibility 
for all aspects of operation, maintenance and replacement of the 
Project.
    (c) Additional Costs.--The State shall bear the cost of all 
boundary surveys, title searches, appraisals, and other transaction 
costs for the conveyance.
    (d) Reclamation Fund.--All funds paid by the State to the Secretary 
under this section shall be credited to the Reclamation Fund in the 
Treasury of the United States.

SEC. 5. FUTURE MANAGEMENT.

    (a) In General.--As a condition of the conveyance under section 3, 
the State shall agree that the lands, water, and facilities of the 
Project shall continue to be managed and operated for the purposes for 
which the Project was originally authorized; that is, to provide a 
dependable municipal and industrial water supply, to conserve and 
develop fish and wildlife resources, and to enhance recreational 
opportunities. In future management of the Project, the State shall, 
consistent with other project purposes and the provision of dependable 
municipal and industrial water supply--
        (1) provide full public access to the Project's lands, subject 
    to reasonable restrictions for purposes of Project security, public 
    safety, and natural resource protection;
        (2) not sell or otherwise dispose of the lands conveyed under 
    section 3;
        (3) prohibit private or exclusive uses of lands conveyed under 
    section 3;
        (4) maintain and manage the Project's fish and wildlife 
    resource and habitat for the benefit and enhancement of those 
    resources;
        (5) maintain and manage the Project's existing recreational 
    facilities and assets, including open space, for the benefit of the 
    general public;
        (6) not charge the public recreational use fees that are more 
    than is customary and reasonable.
    (b) Fish, Wildlife, and Recreation Management.--As a condition of 
conveyance under section 3, management decisions and actions affecting 
the public aspects of the Project (namely, fish, wildlife, and 
recreation resources) shall be conducted according to a management 
agreement between all recipients of title to the Project and the Texas 
Parks and Wildlife Department that has been approved by the Secretary 
and shall extend for the useful life of the Project.
    (c) Existing Obligations.--The United States shall assign to the 
State and the State shall accept all surface use obligations of the 
United States associated with the Project existing on the date of the 
conveyance including contracts, easements, and any permits or license 
agreements.

SEC. 6. MANAGEMENT OF MINERAL ESTATE.

    All mineral interests in the Project retained by the United States 
shall be managed consistent with Federal law and in a manner that will 
not interfere with the purposes for which the Project was authorized.

SEC. 7. LIABILITY.

    (a) In General.--Effective on the date of conveyance of the 
Project, the United States shall not be liable for damages of any kind 
arising out of any act, omission, or occurrence relating to the 
Project, except for damages caused by acts of negligence committed 
prior to the date of conveyance by--
        (1) the United States; or
        (2) an employee, agent, or contractor of the United States.
    (b) No Increase in Liability.--Nothing in this Act increases the 
liability of the United States beyond that provided for in the Federal 
Tort Claims Act (28 U.S.C. 2671 et seq.).

SEC. 8. FUTURE BENEFITS.

    (a) Deauthorization.--Effective on the date of conveyance of the 
Project, the Project conveyed under this Act shall be deauthorized.
    (b) No Reclamation Benefits.--After deauthorization of the Project 
under subsection (a), the State shall not be entitled to receive any 
benefits for the Project under Federal reclamation law (the Act of June 
17, 1902 (32 Stat. 388, chapter 1093)), and Acts supplemental to and 
amendatory of that Act (43 U.S.C. 371 et seq.).

                               Speaker of the House of Representatives.

                            Vice President of the United States and    
                                               President of the Senate.
Requires the Secretary, if the conveyance has not been completed within one year and 180 days after the enactment date of this Act, to report to the House Committee on Resources and the Senate Committee on Energy and Natural Resources on the conveyance's status, any obstacles to completion, and the anticipated completion date.
Directs the State, as a condition of the conveyance, to pay to the Secretary the adjusted net present value of current repayment obligations on the Project as prescribed by this Act. Requires the State to also pay interest on the adjusted net present value of such obligations from the date of the State's most recent annual payment until closing at the interest rate for constant maturity U.S. Treasury notes of an equivalent term. Extinguishes the State's and the Bureau of Reclamation's obligation under a specified Bureau contract upon payment by the State of such amount. Requires the State, after completion of the conveyance, to assume full responsibility for all aspects of operation, maintenance, and replacement of the Project.
Requires the State, as a condition of the conveyance, to agree that the lands, water, and facilities of the Project shall continue to be managed and operated for the purposes for which the Project was originally authorized; that is, to provide a dependable municipal and industrial water supply, to conserve and develop fish and wildlife resources, and to enhance recreational opportunities. Requires the State, in future management of the Project, consistent with other project purposes and the provision of such a water supply, to: (1) provide full public access to the Project's lands, subject to reasonable restrictions for purposes of Project security, public safety, and natural resource protection; (2) not sell or otherwise dispose of the lands conveyed under this Act; (3) prohibit private or exclusive uses of such lands; (4) maintain and manage the Project's fish and wildlife resource and habitat for the benefit and enhancement of those resources; (5) maintain and manage the Project's existing recreational facilities and assets, including open space for the benefit of the public; and (6) not charge the public recreational use fees that are more than is customary and reasonable.
Provides that, as a condition of the conveyance, management decisions and actions affecting the Project's public aspects (namely fish, wildlife, and recreation resources) shall: (1) be conducted according to a management agreement between all recipients of title to the Project and the Texas Parks and Wildlife Department that has been approved by the Secretary; and (2) extend for the useful life of the Project.
Requires all mineral interests in the Project retained by the United States to be managed consistent with Federal law and in a manner that will not interfere with the purposes for which the Project was authorized.
States that nothing in this Act increases the liability of the United States beyond that provided for in the Federal Tort Claims Act.
Deauthorizes the Project on the date of its conveyance. Specifies that the State shall not be entitled to receive any benefits for the Project after deauthorization.
Palmetto Bend Conveyance Act