SECTION 1. SHORT TITLE.

    This Act may be cited as the ``National Forest Stewardship 
Contracting Act of 1994''.

SEC. 2. FINDINGS, PURPOSES, AND DEFINITIONS.

    (a) Findings.--Congress makes the following findings:
            (1) In many of the units of the National Forest System, 
        current conditions, such as heavy fuel loads, tree density, and 
        increased threats from catastrophic fires, disease, and insect 
        infestations, adversely affect the biodiversity, health, and 
        sustainability of the forest ecosystems of such units.
            (2) The current authority granted to resource managers of 
        units of the National Forest System does not provide for the 
        distribution of revenues from the sale of timber and other 
        forest products to accomplish ecosystem restoration work under 
        a single contract.
            (3) A new and innovative contracting process for the 
        National Forest System is required to meet Federal goals of 
        improving forest resource conditions through implementation of 
        ecosystem management.
            (4) The improvement of the forest resource is important to 
        the long-term viability of species found on National Forest 
        System lands.
            (5) Ecosystem restoration work performed as part of a 
        timber sale contract would improve employment opportunities in 
        communities near units of the National Forest System to the 
        benefit of long-term economic health and community stability.
    (b) Purposes.--The purposes of this Act are as follows:
            (1) To improve and restore the health of forest resources 
        through implementation of ecosystem management.
            (2) To provide for employment opportunities and economic 
        stability for communities near units of the National Forest 
        System.
            (3) To provide for needed flexibility in procurement and 
        funding practices and in the distribution of revenues from 
        timber and other forest products to assist in implementation of 
        ecosystem management.
            (4) To provide the Secretary of Agriculture with the 
        authority to enter into stewardship contracts to achieve 
        management requirements prescribed in the following provisions 
        of law:
                    (A) The Act of June 4, 1897 (commonly known as the 
                Organic Administration Act; 16 U.S.C. 473-475, 477-482, 
                551).
                    (B) The Multiple-Use Sustained-Yield Act of 1960 
                (16 U.S.C. 528-531).
                    (C) The Forest and Rangeland Renewable Resources 
                Act of 1974 (16 U.S.C. 1600-1614).
                    (D) Section 14 of the National Forest Management 
                Act of 1976 (16 U.S.C. 472a).
                    (E) The Act of May 23, 1908, and section 13 of the 
                Act of March 1, 1911 (16 U.S.C. 500).
    (c) Definitions.--For purposes of this Act:
            (1) Account.--The term ``Account'' means the Stewardship 
        Account established under section 5.
            (2) Stewardship contract.--The term ``stewardship 
        contract'' means a contract under which receipts from the sale 
        of timber or other forest products are available to finance 
        other resource activities for the improvement and restoration 
        of forest ecosystems of units of the National Forest System.
            (3) Secretary.--The term ``Secretary'' means the Secretary 
        of Agriculture.
            (4) Resource activities.--The term ``resource activities'' 
        includes site preparation, replanting, fish and wildlife 
        habitat enhancement, silvi-cultural treatments, watershed 
        improvement, fuel treatments (including prescribed burning), 
        and road obliteration.
            (5) Resource manager.--The term `resource manager' refers 
        to the line officer responsible for management decisios 
        associated with project implementation on a unit of a national 
        forest.

SEC. 3. USE OF STEWARDSHIP CONTRACTS.

    (a) Use Authorized.--The Secretary shall establish and implement in 
the Forest Service a program to use stewardship contracts for the sale 
of timber and forest products on National Forest System lands using 
resource activities that provide for the health of the forest, 
sustainable ecosystems and economic assistance to forest resource-
dependent communities.
    (b) Development and Use of Contracts.--The Secretary shall develop 
a standard stewardship contract for use throughout the National Forest 
System. Each resource manager of a unit of the National Forest System 
may enter into stewardship contracts with qualified non-Federal 
entities (as established in regulations relating to procurement by the 
Federal Government or as determined by the Secretary). Contracts should 
clearly describe the desired future condition for each resource managed 
under the contract and the evaluation criteria to be used to determine 
acceptable performance. The Secretary shall ensure that resource 
managers give such preferential treatment to small businesses, 
including small business concerns within the meaning of section 3(a) of 
the Small Business Act (15 U.S.C. 632(a)), in the awarding of 
stewardship contracts as is required under existing laws and policies 
relating to the allocation of timber sale programs in the Forest 
Service. The length of a stewardship contract shall be consistent with 
the requirements of section 14 of the National Forest Management Act of 
1976 (16 U.S.C. 472a).
    (c) Selection of Areas for Contracts.--In selecting areas within 
units of the National Forest System to be subject to stewardship 
contracts, the Secretary and resource managers shall base the selection 
on the need to improve forest health, maintain and improve soil and 
water quality, and improve fisheries and wildlife habitat. Priority 
shall be given to wildland interface areas with respect to reducing 
fire hazards and minimizing the effects of insect and disease 
infestations.
    (d) Application of Contracts.--Subject to subsection (e), the 
Secretary may apply all or part of the revenues received from the sale 
of timber or any other forest products resulting to the Federal 
Government under a stewardship contract as an offset against the cost 
of other resource activities undertaken by the Secretary.
    (e) Effect on Other Revenue Requirements.--Required deposits shall 
continue to be made to the National Forest Fund, and 25 percent of the 
actual value of timber removed under stewardship contracts shall remain 
available for payments to States, as required under the Act of May 23, 
1908, and section 13 of the Act of March 1, 1911 (16 U.S.C. 500). The 
Secretary shall first collect revenues to make such payments before 
exercising the authority provided in subsection (d).
    (f) Supplementation of Contracts.--Appropriated funds may be 
included in a stewardship contract before the award of the contract 
if--
            (1) the monies are available from the current annual 
        appropriation; and
            (2) the monies are provided for the benefiting function.

SEC. 4. STEWARDSHIP CONTRACT RECEIPTS AND EXPENDITURES.

    (a) Receipts.--Monetary receipts, as part of the payment for timber 
and other forest products under stewardship contracts, shall be 
deposited in a designated fund to be known as the ``Stewardship 
Account''. Amounts in the Account shall be used to make payments to 
States under the Act of May 23, 1908, and section 13 of the Act of 
March 1, 1911 (16 U.S.C. 500) and to fund resource activities. Amounts 
in the Account are hereby appropriated and shall be available to the 
Secretary until expended, except that those amounts found by the 
Secretary to be in excess to the needs of the Secretary shall be 
transferred to miscellaneous receipts in the Treasury of the United 
States.
    (b) Expenditures.--Not less than 80 percent of amounts in the 
Account available for resource activities shall be used for the direct 
costs of such resource activities.
    (c) Reporting.--As part of the annual report of the Secretary to 
Congress, the Secretary shall include an accounting of revenues, 
expenditures, and accomplishments related to the stewardship contracts.

SEC. 5. RELATION TO OTHER LAWS.

    All stewardship contracts shall comply with existing applicable 
laws, and nothing in this Act may be construed as modifying the 
provisions of any other law except as explicitly provided in this Act.
National Forest Stewardship Contracting Act of 1994 - Directs the Secretary of Agriculture to:  (1) implement a Forest Service program to use National Forest System timber and forest products revenues (stewardship contracts) to conduct other ecosystem resource activities on such lands; and (2) develop a standard System stewardship contract. 
Requires stewardship contract receipts to be deposited into a Stewardship Account.  Appropriates Account funds.
National Forest Stewardship Contracting Act of 1994