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[House Report 107-498]
[From the U.S. Government Publishing Office]

107th Congress                                                   Report
                        HOUSE OF REPRESENTATIVES
 2d Session                                                     107-498

=======================================================================

 
                   NATIONAL HERITAGE AREAS POLICY ACT

                                _______

 June 11, 2002.--Committed to the Committee of the Whole House on the 
              State of the Union and ordered to be printed

                                _______

  Mr. Hansen, from the Committee on Resources, submitted the following

                              R E P O R T

                        [To accompany H.R. 2388]

      [Including cost estimate of the Congressional Budget Office]

  The Committee on Resources, to whom was referred the bill 
(H.R. 2388) to establish the criteria and mechanism for the 
designation and support of national heritage areas, having 
considered the same, report favorably thereon with an amendment 
and recommend that the bill as amended do pass.
  The amendment is as follows:
  Strike all after the enacting clause and insert the 
following:

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

  (a) Short Title.--This Act may be cited as the ``National Heritage 
Areas Policy Act''.
  (b) Table of Contents.--The table of contents of this Act is as 
follows:

Sec. 1. Short title; table of contents.
Sec. 2. Purposes.
Sec. 3. Definitions.
Sec. 4. Recommendation of areas for designation as national heritage 
areas.
Sec. 5. Requirements applicable to feasibility studies.
Sec. 6. Management plans.
Sec. 7. Grants for proposed national heritage areas.
Sec. 8. Grants to support designated national heritage areas.
Sec. 9. Technical assistance.
Sec. 10. Termination of designation.
Sec. 11. Private property protection.
Sec. 12. Relationship to other Federal programs.
Sec. 13. Savings provisions.
Sec. 14. Funding provisions.

SEC. 2. PURPOSES.

  The purposes of this Act are as follows:
          (1) To establish the criteria and mechanisms for the 
        designation of certain areas in the United States containing 
        nationally important natural, historic, and cultural resources 
        and recreational and educational opportunities that are 
        geographically assembled and thematically related as areas that 
        provide unique frameworks for understanding the great and 
        diverse character of the United States and the development of 
        communities and their surroundings as national heritage areas.
          (2) To strengthen, complement, and support the existing units 
        of the National Park System through the interpretation and 
        conservation of the associated living landscapes outside of the 
        boundaries of those units.
          (3) To describe the extent of Federal responsibilities and 
        duties in regard to future national heritage areas.
          (4) To encourage collaboration and partnerships among State 
        and local governments, nonprofit organizations, and the private 
        sector, or combinations thereof, to conserve and manage the 
        resources and opportunities in national heritage areas.
          (5) To authorize Federal financial and technical assistance 
        to local coordinating entities to assist in the conservation 
        and interpretation of national heritage areas.

SEC. 3. DEFINITIONS.

  In this Act:
          (1) Feasibility study.--The term ``feasibility study'' means 
        a study conducted by the Secretary, or conducted by one or more 
        other interested parties and approved by the Secretary in 
        accordance with this Act, regarding the feasibility of 
        designating any proposed national heritage area as a national 
        heritage area.
          (2) Local coordinating entity.--The term ``local coordinating 
        entity'' means, with respect to a national heritage area--
                  (A) an entity recognized by the Secretary, but only 
                after consultation with the chief executive officer of 
                the State in which the national heritage area is 
                located (or if the area is located in more than one 
                State, the chief executive officers of all such 
                States), that agrees to perform the duties of a local 
                coordinating entity under this Act; or
                  (B) a Federal commission designated by Congress with 
                members appointed by the Secretary to perform the 
                duties of a local coordinating entity under this Act.
          (3) National heritage area.--The term ``national heritage 
        area'' means an area or corridor designated by an Act of 
        Congress as a national heritage area.
          (4) Proposed national heritage area.--The term ``proposed 
        national heritage area'' means an area or corridor that has 
        been authorized by an Act of Congress for which the Secretary 
        has been explicitly authorized to conduct a study to determine 
        the suitability and feasibility of designating the area or 
        corridor as a national heritage area.
          (5) Secretary.--The term ``Secretary'' means the Secretary of 
        the Interior.
          (6) State.--The term ``State'' means each of the Several 
        States, the District of Columbia, Guam, the Virgin Islands, 
        American Samoa, the Commonwealth of Puerto Rico, and the 
        Commonwealth of the Northern Mariana Islands.
          (7) Unit of local government.--The term ``unit of local 
        government'' means the government of a State, a political 
        subdivision of a State, or an Indian tribe.

SEC. 4. RECOMMENDATION OF AREAS FOR DESIGNATION AS NATIONAL HERITAGE 
                    AREAS.

  The Secretary may recommend to Congress that an area or corridor be 
designated as a national heritage area only if, not later than 5 years 
after the Act explicitly authorizing the Secretary to conduct a study 
to determine the suitability and feasibility of designating the area or 
corridor as a national heritage area, the Secretary has--
          (1) determined, based upon a feasibility study conducted for 
        the proposed national heritage area that the area contains 
        resources of national importance and is suitable and 
        appropriate for designation as a national heritage area; and
          (2) approved a management plan developed in accordance with 
        this Act for the proposed national heritage area that includes 
        a business plan as described in section 6(b)(4)(G).

SEC. 5. REQUIREMENTS APPLICABLE TO FEASIBILITY STUDIES.

  (a) Study Process and Content.--A feasibility study for a proposed 
national heritage area shall--
          (1) be conducted by the Secretary or by one or more other 
        interested parties for the proposed national heritage area;
          (2) be conducted with participation from the public and units 
        of local government; and
          (3) include the following:
                  (A) Sufficient information to determine whether the 
                proposed national heritage area meets the criteria 
                specified in subsection (b).
                  (B) A description of the natural, historic, and 
                cultural resources and recreational, interpretive, and 
                educational opportunities presented by the proposed 
                national heritage area, including an assessment of the 
                quality and integrity of, the availability of public 
                access to, and the themes represented by such resources 
                and opportunities.
                  (C) An assessment of the interest of, and impact of 
                possible designation upon, potential partners, units of 
                government, nonprofit organizations, and other private 
                entities.
                  (D) A description of the boundaries and conceptual 
                framework for the proposed national heritage area, if 
                the study concludes that all or a portion of the 
                proposed national heritage area is appropriate for 
                designation as a national heritage area.
                  (E) The identity of the local coordinating entity for 
                the proposed national heritage area.
  (b) Criteria for Concluding Area Is Appropriate for Designation.--The 
criteria referred to in subsection (a)(3)(A) are the following:
          (1) Assemblage of resources.--The proposed national heritage 
        area is a cohesive assemblage of natural, historic, cultural, 
        or recreational resources that--
                  (A) together represent distinctive aspects of 
                American heritage worthy of recognition, conservation, 
                interpretation, and continuing use; and
                  (B) are best managed through partnerships between 
                private and public entities.
          (2) Traditions, customs, beliefs, or folklife.--The proposed 
        national heritage area reflects traditions, customs, beliefs, 
        or folklife, or some combination thereof, that are a valuable 
        part of the heritage of the United States.
          (3) Conservation of natural, cultural, or historic 
        features.--The proposed national heritage area provides 
        outstanding opportunities to conserve natural, cultural, or 
        historic features, or some combination thereof.
          (4) Recreational and educational opportunities.--The proposed 
        national heritage area provides outstanding recreational and 
        interpretive opportunities.
          (5) Themes and integrity of resources.--The proposed national 
        heritage area has an identifiable theme, and resources 
        important to the theme retain integrity capable of supporting 
        interpretation.
          (6) Support.--Residents, nonprofit organizations, other 
        private entities, and units of local government throughout the 
        proposed national heritage area demonstrate support through 
        letters or other means for designation of the proposed national 
        heritage area as a national heritage area and for management of 
        the proposed national heritage area as appropriate for such 
        designation.
  (c) Comments of State Chief Executive Officer.--Before submitting any 
feasibility study to the Congress regarding a proposed national 
heritage area, the Secretary shall solicit comments from the chief 
executive officer of each State in which the proposed national heritage 
area is located. The Secretary shall include in the study any comments 
the Secretary receives from each relevant chief executive officer.
  (d) Submission of Feasibility Study.--Upon completion or approval by 
the Secretary of a feasibility study, the Secretary shall submit the 
study to the Committee on Resources of the House of Representatives and 
the Committee on Energy and Natural Resources of the Senate. The 
Secretary shall include with the study the recommendations of the 
Secretary with respect to the proposed designation to which the study 
relates.
  (e) Studies by Interested Parties.--For the purposes of any Act 
authorizing the Secretary to conduct a study to determine the 
feasibility of designating an area as a national heritage area, the 
Secretary may approve a feasibility study submitted by one or more 
interested parties in lieu of conducting the study if the feasibility 
study meets the requirements of this Act unless the Act authorizing the 
study explicitly exempts the study from this subsection.
  (f) Approval and Disapproval of a Feasibility Study.--
          (1) In general.--Not later than 90 days after receipt of a 
        feasibility study for a proposed national heritage area, the 
        Secretary shall approve or disapprove the study. If the 
        Secretary has not approved or disapproved the study within that 
        90-day period, the study shall be considered approved.
          (2) Disapproval and revisions.--If the Secretary disapproves 
        a feasibility study for a proposed national heritage area, the 
        Secretary shall advise the entity that submitted the study, in 
        writing, of the reasons for the disapproval and shall make 
        recommendations, if any, for a revision of the study. Not later 
        than 90 days after receipt of a revised feasibility study, the 
        Secretary shall approve or disapprove the revised study. If the 
        Secretary has not approved or disapproved the revised study 
        within that 90-day period, the revised study shall be 
        considered approved.

SEC. 6. MANAGEMENT PLANS.

  (a) Requirements.--In order to meet the requirements of this Act, a 
management plan for a proposed national heritage area shall be prepared 
by the local coordinating entity for the proposed national heritage 
area in accordance with this section. In preparing the management plan, 
the local coordinating entity shall perform each of the following 
duties:
          (1) Management plan.--Prepare and submit a management plan 
        reviewed by participating units of local government within the 
        boundaries of the proposed national heritage area.
          (2) Collaboration.--Collaborate with and consider the 
        interests of diverse units of government, businesses, tourism 
        officials, private property owners, and nonprofit groups within 
        the geographic area of the proposed national heritage area in 
        developing and implementing such management plan.
          (3) Public involvement.--Ensure regular public involvement, 
        including public meetings at least annually, regarding the 
        implementation of the management plan for the proposed national 
        heritage area.
          (4) Records for audits.--Make available to the Secretary for 
        audit, for any year in which Federal funds have been received 
        under this Act, all records pertaining to the expenditure of 
        such funds and any matching funds, and require, for all 
        agreements authorizing expenditure of Federal funds by other 
        organizations, that the receiving organizations make available 
        to the Secretary for audit all records pertaining to the 
        expenditure of such funds.
  (b) Contents of Management Plan.--The management plan prepared for a 
proposed national heritage area shall--
          (1) present a comprehensive program for the conservation, 
        interpretation, funding, management, and development of the 
        proposed national heritage area and of the historical, 
        cultural, and natural resources and the recreational and 
        educational opportunities of the proposed national heritage 
        area, in a manner consistent with the existing local, State, 
        and Federal land use laws and compatible economic viability of 
        the proposed national heritage area;
          (2) involve residents, public agencies, and private 
        organizations working in the proposed national heritage area;
          (3) specify and coordinate, as of the date of the management 
        plan, existing and potential sources of technical and financial 
        assistance under this and other Federal laws to protect, 
        manage, and develop the proposed national heritage area; and
          (4) include--
                  (A) actions to be undertaken by units of government 
                and private organizations to protect, conserve, and 
                interpret the resources of the proposed national 
                heritage area;
                  (B) an inventory of the resources contained in the 
                proposed national heritage area, including a list of 
                any property in the proposed national heritage area 
                that is related to the themes of the proposed national 
                heritage area and that is found to merit preservation, 
                restoration, management, development, or maintenance 
                because of its natural, cultural, historical, or 
                recreational significance;
                  (C) policies for resource management with appropriate 
                land and water management techniques, including the 
                development of intergovernmental cooperative 
                agreements, private sector agreements, or any 
                combination thereof, to protect the historical, 
                cultural, recreational, and natural resources of the 
                proposed national heritage area in a manner consistent 
                with supporting appropriate and compatible economic 
                viability;
                  (D) a program for implementation of the management 
                plan by the designated local coordinating entity, in 
                cooperation with its partners and units of local 
                government;
                  (E) evidence that relevant State, county, and local 
                plans applicable to proposed national heritage areas 
                have been taken into consideration;
                  (F) an analysis of ways in which local, State, and 
                Federal programs may best be coordinated to promote the 
                purposes of this Act; and
                  (G) a business plan that--
                          (i) describes in detail the role, operation, 
                        financing, and functions of the local 
                        coordinating entity and of each activity 
                        included in the recommendations contained in 
                        the management plan; and
                          (ii) provides, to the satisfaction of the 
                        Secretary, adequate assurances that the local 
                        coordinating entity is likely to have the 
                        financial resources necessary to implement the 
                        management plan for the proposed heritage area, 
                        including resources to meet matching 
                        requirement for grants awarded under this Act.
  (c) Public Notice.--To satisfy the requirements of subsection (a)(3), 
the local coordinating entity shall place a notice of each of its 
public meetings in a newspaper of general circulation in the proposed 
national heritage area and shall make the minutes of the meeting 
available to the public.
  (d) Approval of the Plan.--The Secretary may approve the management 
plan for a proposed national heritage area only if the Secretary finds 
that--
          (1) the management plan satisfies the requirements of this 
        Act and, if implemented, would--
                  (A) adequately protect, conserve, or adaptively reuse 
                the significant historical, cultural, natural, and 
                recreational resources of the proposed national 
                heritage area; and
                  (B) consistent with such protection, provide outdoor 
                recreational opportunities and compatible economic 
                activities within the proposed national heritage area;
          (2) the participating units of local government within the 
        boundaries of the proposed national heritage area have been 
        consulted and given adequate opportunity to comment on the 
        management plan;
          (3) the local coordinating entity has afforded adequate 
        opportunity, including public hearings, for public and 
        governmental involvement in the preparation of the management 
        plan; and
          (4) the Secretary has received from the chief executive 
        officer of each State acknowledgement that such officer is 
        aware of the proposed national heritage area.
  (e) Approval and Disapproval of a Management Plan.--
          (1) In general.--Not later than 90 days after receipt of a 
        management plan for a proposed national heritage area, the 
        Secretary shall approve or disapprove the management plan. If 
        the Secretary has not approved or disapproved the management 
        plan within that 90-day period, the management plan shall be 
        considered approved.
          (2) Disapproval and revisions.--If the Secretary disapproves 
        a management plan for a proposed national heritage area, the 
        Secretary shall advise the entity that submitted the management 
        plan, in writing, of the reasons for the disapproval and shall 
        make recommendations for a revision of the management plan. Not 
        later than 90 days after receipt of a revised management plan, 
        the Secretary shall approve or disapprove the revised 
        management plan. If the Secretary has not approved or 
        disapproved the revised management plan within that 90-day 
        period, the revised management plan shall be considered 
        approved.

SEC. 7. GRANTS FOR PROPOSED NATIONAL HERITAGE AREAS.

  (a) Authority To Make Grants.--The Secretary may make grants for 
activities authorized by subsection (b).
  (b) Use of Grants.--
          (1) Authorized uses.--Grants under this section may be used 
        for activities necessary--
                  (A) to conduct a feasibility study for a proposed 
                national heritage area; and
                  (B) to prepare a management plan for a proposed 
                national heritage area, including the business plan 
                required under section 6(b)(4)(G).
          (2) Prohibited uses of grants.--Grants under this section may 
        not be used for--
                  (A) the acquisition of real property or any interest 
                in real property; or
                  (B) any other activity not specifically authorized by 
                paragraph (1).
  (c) Duration of Eligibility for Grants.--The Secretary may not 
provide a grant under this section for a proposed national heritage 
area for any period after the expiration of the 5-year period beginning 
on the date of the enactment of the Act authorizing the feasibility 
study for the proposed national heritage area.

SEC. 8. GRANTS TO SUPPORT DESIGNATED NATIONAL HERITAGE AREAS.

  (a) Authority To Make Grants.--The Secretary may make grants from 
appropriated funds to the local coordinating entity for a national 
heritage area for activities authorized by subsection (b).
  (b) Use of Grants.--
          (1) Authorized Uses.--Grants under this section may be used 
        by a local coordinating entity for--
                  (A) reports, studies, interpretive exhibits and 
                programs, historic preservation projects, and other 
                activities recommended in the management plan for the 
                national heritage area; and
                  (B) operational expenses of the local coordinating 
                entity incurred within the first 10 fiscal years 
                beginning after the date of the enactment of the Act 
                designating the national heritage area.
          (2) Prohibited uses of grants.--Grants under this section may 
        not be used for--
                  (A) the acquisition of real property or any interest 
                in real property; or
                  (B) any other activity not specifically authorized by 
                paragraph (1).
  (c) Protection of Federal Investment.--The Secretary shall require 
that each grant under this section for the improvement, restoration, or 
rehabilitation of real property shall be subject to an agreement that 
conversion, use, or disposal of the project assisted with the grant for 
purposes contrary to the purposes for which the grant was made shall 
result in a right of the United States to compensation from the 
beneficiary of the grant. Any such agreement shall provide for a 
schedule for such compensation based on the level of Federal investment 
and the anticipated useful life of the project.
  (d) Duration of Eligibility for Grants.--The Secretary may not 
provide any grant under this section to a local coordinating entity for 
any period after the expiration of the 10-year period beginning on the 
date of the enactment of the Act designating the national heritage 
area.

SEC. 9. TECHNICAL ASSISTANCE.

  The Secretary may provide technical assistance on a nonreimbursable 
basis--
          (1) to any interested party for any activity for which the 
        Secretary is authorized to provide a grant under section 7; and
          (2) to local coordinating entities for any activity for which 
        the Secretary is authorized to provide a grant under section 8.

SEC. 10. TERMINATION OF DESIGNATION.

  (a) Notice of Determination.--The Secretary shall submit a written 
notice to the local coordinating entity of a national heritage area so 
designated after the date of the enactment of this Act if the Secretary 
determines that--
          (1) implementation of the management plan for the national 
        heritage area has failed to meet standards set forth in the 
        management plan; or
          (2) a preponderance of the units of local government involved 
        in implementing the management plan for the national heritage 
        area no longer support such designation.
  (b) Comment.--Not later than 60 days after the date that the 
Secretary submits a written notice under subsection (a) to a local 
coordinating entity, the local coordinating entity may submit to the 
Secretary written comments supporting a contention that the 
determination under section (a) was made in error.
  (c) Termination.--After considering any comments submitted under 
subsection (b), if the Secretary decides that the determination under 
subsection (a) was correct, the Secretary shall no longer provide 
financial assistance under this Act for that national heritage area.

SEC. 11. PRIVATE PROPERTY PROTECTION.

  (a) Access to Private Property.--Nothing in this Act shall be 
construed to require any private property owner to permit public access 
(including Federal, State, or local government access) to such private 
property. Nothing in this Act shall be construed to modify any 
provision of Federal, State, or local law with regard to public access 
to or use of private lands.
  (b) Liability.--Designation of a national heritage area shall not be 
considered to create any liability, or to have any effect on any 
liability under any other law, of any private property owner with 
respect to any persons injured on such private property.
  (c) Recognition of Authority To Control Land Use.--Nothing in this 
Act shall be construed to modify any authority of Federal, State, or 
local governments to regulate land use.
  (d) Participation of Private Property Owners in National Heritage 
Areas.--Nothing in this Act shall be construed to require the owner of 
any private property located within the boundaries of a national 
heritage area to participate in or be associated with the national 
heritage area.

SEC. 12. RELATIONSHIP TO OTHER FEDERAL PROGRAMS.

  (a) Other Assistance Not Affected.--This Act does not affect the 
authority of any Federal official to provide technical or financial 
assistance under any other law.
  (b) Notification of Other Federal Activities.--The head of each 
Federal agency shall provide to the Secretary and the local 
coordinating entity for a national heritage area, to the extent 
practicable, advance notice of all activities which may have an impact 
on the national heritage area.

SEC. 13. SAVINGS PROVISIONS.

  (a) Rules, Regulations, Standards, and Permit Processes.--Except as 
provided in section 12(b), nothing in this Act shall be construed to 
impose any environmental, occupational, safety, or other rule, 
regulation, standard, or permit process in a national heritage area 
that is different from those that would be applicable if the national 
heritage area had not been established.
  (b) Water and Water Rights.--Nothing in this Act shall be construed 
to authorize or imply the reservation or appropriation of water or 
water rights.
  (c) No Diminishment of State Authority.--Nothing in this Act shall be 
construed to diminish the authority of the State containing any 
national heritage area to manage fish and wildlife, including the 
regulation of fishing and hunting within the national heritage area.
  (d) Existing National Heritage Areas.--Nothing in this Act shall 
affect any national heritage area so designated before the date of the 
enactment of this Act.

SEC. 14. FUNDING.

  (a) Authorization of Appropriations.--
          (1) In general.--There are authorized to be appropriated for 
        each fiscal year for grants and technical assistance for 
        activities under section 8--
                  (A) not more than $1,000,000 for any fiscal year for 
                each national heritage area to remain available until 
                expended; and
                  (B) not more than a total of $10,000,000 for each 
                national heritage area.
          (2) Amounts for initial studies and plans.--In addition to 
        amounts authorized in paragraphs (1) and (3), there are 
        authorized to be appropriated for each fiscal year for grants 
        and technical assistance for activities under section 7--
                  (A) not more than $250,000 for any fiscal year for 
                each proposed national heritage area to remain 
                available until expended; and
                  (B) not more than a total of $1,500,000 for each 
                proposed national heritage area.
          (3) Amounts for feasibility studies.--In addition to amounts 
        authorized in paragraphs (1) and (2), there is authorized to be 
        appropriated not more than $250,000 for each feasibility study 
        directed by Congress to be completed by the Secretary.
  (b) Required Match.--As a condition of providing a grant under this 
section, the Secretary shall require the recipient of the grant to 
provide matching funds equal to the amount of the grant. Recipient 
matching funds--
          (1) must be from non-Federal sources; and
          (2) may be made in the form of in-kind contributions of goods 
        or services fairly valued.
  (c) Limit on Federal Oversight and Administrative Funds.--Not more 
than five percent of the funds made available under each of subsections 
(a)(1) and (a)(2) for a fiscal year may be used by the Secretary for 
technical assistance, oversight, and administrative purposes.
  (d) Prohibition on Use of Funds To Supplement National Park System.--
No funds authorized to be appropriated under this section other than 
those authorized by subsection (c) may be used to supplement funding or 
programs at any unit of the National Park System.
  (e) Use of Federal Funds From Other Sources.--Nothing in this Act 
shall preclude a local coordinating entity from using Federal funds 
available under other Federal laws for the purposes for which those 
funds were authorized.
  (f) Allocation of Appropriations.--Notwithstanding any other 
provision of law, no funds appropriated or otherwise made available to 
the Secretary to carry out the purposes of this Act may be obligated or 
expended--
          (1) unless the appropriation of such funds has been allocated 
        in the manner prescribed by this Act; or
          (2) in excess of the amount authorized in this Act.

                          purpose of the bill

    The purpose of H.R. 2388 is to establish the criteria and 
mechanism for the designation and support of national heritage 
areas.

                  background and need for legislation

    There are currently 23 Congressionally-designated national 
heritage areas (NHA) and corridors in the United States--17 of 
which have been designated since 1996. Today, criteria exists 
for establishing units of the National Park System, the 
National Trails System, and National Wild and Scenic River 
System, yet no uniform standards or criteria exists for the 
Secretary of the Interior to determine the feasibility for 
designation, or even what makes an area ``nationally 
important'' for NHA or corridor status. Meanwhile, to date over 
18 bills have been introduced in 107th Congress to either 
establish or authorize a feasibility study for 12 new NHAs and 
corridors.
    NHAs and corridors, a relatively new phenomenon, are not 
units of the National Park System, but rather are regions in 
which entire communities (i.e. residents, businesses and local 
governments) have come togther to conserve special landscapes 
and their own heritage that in many cases strengthen, 
complement and support existing units of the National Park 
System through the interpretation and conservation of 
associated living landscapes outside the boundaries of those 
units. In these NHAs and corridors, the National Park Service 
does not acquire new land. Instead, conservation, 
interpretation, and other activities are managed by 
partnerships among federal, state and local governments, and 
private, nonprofit organizations. The National Park Service 
provides technical assistance to local coordinating entities 
and financial assistance for a limited period. For each NHA and 
corridor, a local government agency, nonprofit organization, or 
independent federal commission has been recognized by Congress 
to serve as the management entity that coordinates the 
partners' actions. Designation as an NHA or corridor brings no 
federal regulation of private property.
    H.R. 2388 establishes uniform criteria and mechanisms for 
designating new NHAs and corridors by defining the 
circumstances under which a region or corridor warrants 
designation, such as does the area or corridor contain 
nationally important natural, historic, and cultural resources 
and recreational and educational opportunities that are 
geographically and thematically related. The bill further 
establishes standards for managing and maintaining these areas, 
outlines the extent of federal responsibilities and duties in 
regard to future NHAs, encourages collaboration and 
partnerships among State and local governments, nonprofit 
organizations and the private sector to conserve and manage the 
resources and opportunities of NHAs, and authorizes federal 
financial and technical assistance to local coordinating 
entities to assist in the conservation and interpretation of 
NHAs and corridors.
    Specifically, H.R. 2388 establishes a two-tier process that 
first requires an Act of Congress to authorize the Secretary of 
the Interior to complete a feasibility study or approve an 
existing feasability study for a proposed NHA or corridor. It 
also requires a management plan to be completed by the local 
coordinating entity that outlines financial commitments for the 
proposed area. A matching grant program would be established to 
assist the local coordinating entity to complete these plans. 
Within five years, the studies must be completed and approved 
by the Secretary of the Interior. Then a second Act of Congress 
would designate the area as a NHA or corridor. Upon 
designation, the local coordinating entity would be eligible 
for federal funds for a specific time period to develop 
interpretive and historic preservation programs and other 
recommended programs outlined by the management plan. H.R. 2388 
makes it clear that nothing in the bill shall be construed to 
require the owner of any private property located within the 
boundaries of an NHA to participate in or be associated with an 
NHA or corridor, or be construed to modify any authority of 
federal, State, or local government to regulate land use.

                            committee action

    H.R. 2388 was introduced on June 28, 2001, by Congressman 
Joel Hefley (R-CO). The bill was referred to the Committee on 
Resources, and within the Committee to the Subcommittee on 
National Parks, Recreation, and Public Lands. On November 1, 
2001, the Subcommittee held a hearing on the bill. On April 18, 
2002, the Subcommittee met to mark up the bill. Mr. Hefley 
offered an amendment in the nature of a substitute that made, 
among others, the following changes to the original text: (1) 
established a two tier matching grant program that would make 
funds available to proposed areas for the development of their 
management and financial plans and feasibility studies, and 
then additional funding once an area is designated for 
exhibits, programs, historic preservation, etc.; (2) 
established criteria for consideration and designation of NHAs; 
(3) clarified what a local management entity must have 
completed before designation is possible; and (4) removed 
existing designated NHAs from the requirements of the bill. It 
was adopted by voice vote. The bill as amended was then ordered 
favorably reported to the Full Committee by voice vote. On May 
22, 2002, the Full Resources Committee met to consider the 
bill. Mr. Hefley offered an amendment in the nature of a 
substitute that established criteria for both the feasibility 
study and management plan, and required that both the study and 
management plan be completed and approved by the Secretary of 
the Interior prior to establishing an NHA or corridor. The 
amendment also ensured that State and local participation in 
the development of the NHAs and established a five-year 
matching grant program to local coordinating entities for the 
development of their feasibility study and management plan, and 
then a ten-year grant program for NHAs to carry-out their 
preservation programs and management plan. Congressman Nick 
Rahall (D-WV) offered an amendment to the Hefley amendment to 
permit the use of federal funds to purchase real property or 
interest in real property within NHAs. It was not adopted by a 
roll call vote of 15 yeas to 22 noes, as follows:

    Congressman Richard Pombo (R-CA) offered an en bloc 
amendment to the Hefley amendment to inform and obtain written 
consent from private property owners within a proposed NHA. It 
was not adopted by a roll call vote of 19 yeas to 21 noes, as 
follows:

    Congressman Mark Udall (D-CO) offered an amendment to the 
Hefley Amendment to insert at the end of the bill a new section 
entitled ``Study on Cultural Heritage Assistance Partnership 
Program.'' It was not agreed to by voice vote. The Hefley 
amendment in the nature of a substitute was adopted by voice 
vote. The bill as amended was then ordered favorably reported 
to the House of Representatives by voice vote.

                      section-by-section analysis

Section 1. Short title; Table of Contents

    Section 1 contains the short title of the bill, the 
``National Heritage Areas Policy Act'', and the table of 
contents.

Section 2. Purposes

    Section 2 contains the purposes of the bill, which are, 
among others, to: (1) establish the criteria and mechanisms for 
designations of certain areas in the United States as NHAs; (2) 
describe the extent of federal responsibilities, including its 
financial and technical assistance, and duties with regard to 
future NHAs, and (3) encourage collaboration and partnerships 
among State and local governments, nonprofit organizations, and 
the private sector, or combinations thereof, to conserve and 
manage the resources and opportunities in NHAs.

Section 3. Definitions

    Section 3 includes definitions for terms associated with 
the bill.

Section 4. Recommendation of areas for designation as national heritage 
        areas

    Section 4 establishes the requirement that the Secretary of 
the Interior must approve both a feasibility study and 
management plan prior to Congressional designation of an NHA.

Section 5. Requirements applicable to feasibility studies

    Section 5 outlines the process and requirements for the 
feasibility study for a proposed NHA and the approval/
disapproval process by the Secretary.

Section 6. Management plans

    Section 6 outlines the process and requirements for a 
management plan for a proposed NHA and the approval/disapproval 
process by the Secretary.

Section 7. Grants for proposed national heritage areas

    Section 7 outlines the authorized and prohibited uses of 
grants for proposed NHAs.

Section 8. Grants to support designated national heritage areas

    Section 8 outlines the appropriate and prohibited uses of 
grants to support designated NHAs.

Section 9. Technical assistance

    Section 9 contains the Secretarial authority to provide 
technical assistance on a nonreimbursable basis to an 
interested party for a proposed NHA and a local coordinating 
entity for a designated NHA.

Section 10. Termination of designation

    Section 10 outlines the process for the Secretary to 
terminate a designated NHA and the process for appeal by a 
local coordinating entity.

Section 11. Private property protection

    Section 11 describes the protections for private property 
within designated NHAs and the relationship of the bill to 
State and local zoning laws.

Section 12. Relationship to other federal programs

    Section 12 describes the relationship of the bill to other 
laws.

Section 13. Savings provisions

    Sections 13 describes the relationship of the bill to 
existing NHAs, existing water rights, and State authority.

Section 14. Funding

    Section 14 contains the authorization of appropriations--
not more than $10 million for grants and technical assistance 
for each designated NHA and not more than $1.5 million for 
grants and technical assistance for each proposed NHA. Also 
contains matching requirements for grants and establishes a 
maximum amount for the Secretary to administer the grant 
program.

            committee oversight findings and recommendations

    Regarding clause 2(b)(1) of rule X and clause 3(c)(1) of 
rule XIII of the Rules of the House of Representatives, the 
Committee on Resources' oversight findings and recommendations 
are reflected in the body of this report.

                   constitutional authority statement

    Article I, section 8 of the Constitution of the United 
States grants Congress the authority to enact this bill.

                    compliance with house rule xiii

    1. Cost of Legislation. Clause 3(d)(2) of rule XIII of the 
Rules of the House of Representatives requires an estimate and 
a comparison by the Committee of the costs which would be 
incurred in carrying out this bill. However, clause 3(d)(3)(B) 
of that rule provides that this requirement does not apply when 
the Committee has included in its report a timely submitted 
cost estimate of the bill prepared by the Director of the 
Congressional Budget Office under section 402 of the 
Congressional Budget Act of 1974.
    2. Congressional Budget Act. As required by clause 3(c)(2) 
of rule XIII of the Rules of the House of Representatives and 
section 308(a) of the Congressional Budget Act of 1974, this 
bill does not contain any new budget authority, spending 
authority, credit authority, or an increase or decrease in 
revenues or tax expenditures.
    3. General Performance Goals and Objectives. As required by 
clause 3(c)(4) of rule XIII, the general performance goal or 
objective of this bill is to establish the criteria and 
mechanism for the designation and support of national heritage 
areas.
    4. Congressional Budget Office Cost Estimate. Under clause 
3(c)(3) of rule XIII of the Rules of the House of 
Representatives and section 403 of the Congressional Budget Act 
of 1974, the Committee has received the following cost estimate 
for this bill from the Director of the Congressional Budget 
Office:

                                     U.S. Congress,
                               Congressional Budget Office,
                                      Washington, DC, June 6, 2002.
Hon. James V. Hansen,
Chairman, Committee on Resources,
House of Representatives, Washington, DC.
    Dear Mr. Chairman: The Congressional Budget Office has 
prepared the enclosed cost estimate for H.R. 3288, the National 
Heritage Areas Policy Act.
    If you wish further details on this estimate, we will be 
pleased to provide them. The CBO staff contact is Deborah Reis.
            Sincerely,
                                        Steven M. Lieberman
                                    (For Dan L. Crippen, Director).
    Enclosure.

H.R. 2388--National Heritage Areas Policy Act

    H.R. 2388 would provide a framework for establishing new 
national heritage areas (NHAs). NHAs are cultural or historical 
areas managed locally in cooperation with the National Park 
Service (NPS) but are not units of the National Park System. 
CBO estimates that enacting H.R. 2388--by itself--would have no 
effect on the federal budget because none of the activities 
authorized by the bill could occur without further authorizing 
legislation. The bill, however, would establish a new procedure 
that could affect how many and how quickly new NHAs would be 
established using future appropriate funds. It also would 
authorize appropriations for the study of and potential 
creation of future NHAs. H.R. 2388 would not affect direct 
spending or receipts; therefore, pay-as-you-go procedures would 
not apply.
    H.R. 2388 contains no intergovernmental or private-sector 
mandates as defined in the Unfunded Mandates Reform Act and 
would impose no costs on state, local, or tribal governments.
    H.R. 2388 would establish criteria and mechanisms for 
assessing, planning, designating, and developing new national 
heritage areas. For each proposed new NHA, Congressional action 
would be required to authorize both the first step--a 
feasibility study, and the final step--a formal NHA 
designation.
    Under the bill, once a feasibility study has been 
authorized, the NPS would have five years to approve and submit 
to the Congress both the study (conducted either by the NPS or 
by an interested local entity) and a general management plan 
(developed by a local coordinating entity), along with the 
agency's recommendation regarding designation. For each 
proposed NHA, section 14 of the bill would authorize the 
appropriation of $250,000 per year (up to a total of $1.5 
million) for technical assistance and grants to local groups 
for preparing the feasibility study and management plan. (This 
section also would authorize the appropriation of $250,000 for 
each feasibility study conducted by the NPS itself.)
    Once a formal designation of a new NHA has been enacted, 
NPS would be authorized to provide technical and financial 
assistance to a local coordinating entity over the following 10 
years. This assistance would provide the local entity with 
operating funds and would support activities to implement the 
general management plan (including preparation of the necessary 
studies and interpretive programs and restoration of historic 
structures). For this purpose, the bill would authorize the 
appropriation of $10 million over 10 years for each NHA.
    Because the authority to appropriate funds provided in H.R. 
2388 would depend on subsequent acts of Congress to authorize 
feasibility studies and designate new NHAs, CBO estimates that 
enacting this legislation alone would have no effect on the 
federal budget.
    The CBO staff contact for this estimate is Deborah Reis. 
The estimate was reviewed by Peter H. Fontaine, Deputy 
Assistant Director for Budget Analysis.

                    COMPLIANCE WITH PUBLIC LAW 104-4

    This bill contains no unfunded mandates.

                PREEMPTION OF STATE, LOCAL OR TRIBAL LAW

    This bill is not intended to preempt any State, local or 
tribal law.

                        CHANGES IN EXISTING LAW

    If enacted, this bill would make no changes in existing 
law.

                                

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