SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Canadian River Project Prepayment 
Act''.

SEC. 2. DEFINITIONS.

    For the purposes of this Act:
            (1) The term ``Authority'' means the Canadian River 
        Municipal Water Authority, a conservation and reclamation 
        district of the State of Texas.
            (2) The term ``Canadian River Project Authorization Act'' 
        means the Act entitled ``An Act to authorize the construction, 
        operation, and maintenance by the Secretary of the Interior of 
        the Canadian River reclamation project, Texas'', approved 
        December 29, 1950 (chapter 1183; 64 Stat. 1124).
            (3) The term ``Project'' means all of the right, title and 
        interest in and to all land and improvements comprising the 
        pipeline and related facilities of the Canadian River Project 
        authorized by the Canadian River Project Authorization Act.
            (4) The term ``Secretary'' means the Secretary of the 
        Interior.

SEC. 3. PREPAYMENT AND CONVEYANCE OF PROJECT.

    (a) In General.--(1) In consideration of the Authority accepting 
the obligation of the Federal Government for the Project and subject to 
the payment by the Authority of the applicable amount under paragraph 
(2) within the 360-day period beginning on the date of the enactment of 
this Act, the Secretary shall convey the Project of the Authority, as 
provided in section 2(c)(3) of the Canadian River Project Authorization 
Act (64 Stat. 1124).
    (2) For purposes of paragraph (1), the applicable amount shall be--
            (A) $33,600,000 if payment is made by the Authority within 
        the 270-day period beginning on the date of enactment of this 
        Act; or
            (B) the amount specified in subparagraph (A) adjusted to 
        include interest on that amount since the date of the enactment 
        of this Act at the appropriate Treasury bill rate for an 
        equivalent term, if payment is made by the Authority after the 
        period referred to in subparagraph (A).
    (3) If payment under paragraph (1) is not made by the Authority 
within the period specified in paragraph (1), this Act shall have no 
force or effect.
    (b) Financing.--Nothing in this Act shall be construed to affect 
the right of the Authority to use a particular type of financing.

SEC. 4. RELATIONSHIP TO EXISTING OPERATIONS.

    (a) In General.--Nothing in this Act shall be construed as 
significantly expanding or otherwise changing the use or operation of 
the Project from its current use and operation.
    (b) Future Alterations.--If the Authority alters the operations or 
uses of the Project it shall comply with all applicable laws or 
regulations governing such alteration at that time.
    (c) Recreation.--The Secretary of the Interior, acting through the 
National Park Service, shall continue to operate the Lake Meredith 
National Recreation Area at Lake Meredith.
    (d) Flood Control.--The Secretary of the Army, acting through the 
Corps of Engineers, shall continue to prescribe regulations for the use 
of storage allocated to flood control at Lake Meredith as prescribed in 
the Letter of Understanding entered into between the Corps, the Bureau 
of Reclamation, and the Authority in March and May 1980.
    (e) Sanford Dam Property.--The Authority shall have an unrestricted 
right to occupy and use without cost the property retained by the 
Bureau of Reclamation at Sanford Dam and all buildings constructed by 
the United States thereon for use as the Authority's headquarters and 
maintenance facility. Buildings constructed by the Authority on such 
property, or past or future additions to Government-constructed 
buildings, shall be allowed to remain on the property without 
restriction.

SEC. 5. RELATIONSHIP TO CERTAIN CONTRACT OBLIGATIONS.

    (a) Payment Obligations Extinguished.--Provision of consideration 
by the Authority in accordance with section 3(b) shall extinguish all 
payment obligations under contract numbered 14-06-500-485 between the 
Authority and the Secretary.
    (b) Operation and Maintenance Costs.--After completion of the 
conveyance provided for in section 3, the Authority shall have full 
responsibility for the cost of operation and maintenance of Sanford 
Dam, and shall continue to have full responsibility for operation and 
maintenance of the Project pipeline and related facilities.
    (c) General.--Rights and obligations under the existing contract 
No. 14-06-500-485 between the Authority and the United States, other 
than provisions regarding repayment of construction charge obligation 
by the Authority and provisions relating to the Project aqueduct, shall 
remain in full force and effect for the remaining term of the contract.

SEC. 6. RELATIONSHIP TO OTHER LAWS.

    (a) Reclamation Laws.--Upon conveyance of the Project under this 
Act, the Reclamation Act of 1902 (82 Stat. 388) and all Acts amendatory 
thereof or supplemental thereto shall not apply to the Project.

SEC. 7. LIABILITY.

    Except as otherwise provided by law, effective on the date of 
conveyance of the Project under this Act, the United States shall not 
be liable under any law for damages of any kind arising out of any act, 
omission, or occurrence relating to the conveyed property.
Canadian River Project Prepayment Act - Directs the Secretary of the Interior to convey to the Canadian River Municipal Water Authority, Texas, the Canadian River Project, subject to:  (1) the Authority accepting the obligations of the United States for the Project; and (2) Authority payment of a specified amount, within one year after enactment of this Act, which shall extinguish all payment obligations under a current contract. 
Provides continued Federal authority for the operation of recreation and flood control in the Lake Meredith area. 
Requires the Authority to have full responsibility for the operation and maintenance of the Sanford Dam, as well as Project pipeline and related facilities.
Canadian River Project Prepayment Act