II

106TH CONGRESS

1ST SESSION S. 1986

To amend title X of division C of the Omnibus Consolidated and Emergency

Supplemental Appropriations Act of 1998, relating to the Canyon Ferry

Reservoir, Montana.

IN THE SENATE OF THE UNITED STATES

NOVEMBER 19, 1999

Mr. BAUCUS (for himself and Mr. BURNS) introduced the following bill; which

was read twice and referred to the Committee on Energy and Natural

Resources

A BILL

To amend title X of division C of the Omnibus Consolidated

and Emergency Supplemental Appropriations Act of

1998, relating to the Canyon Ferry Reservoir, Montana.

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled,

3 SECTION 1. CANYON FERRY RESERVOIR, MONTANA.

4 (a) DEFINITION OF INDIVIDUAL PROPERTY PUR5 CHASER.—Section 1003 of title X of division C of the Om6 nibus Consolidated and Emergency Supplemental Appro7 priations Act, 1999 (112 Stat. 2681–711) is amended—
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1 (1) by redesignating paragraphs (4) through

2 (12) as paragraphs (5) through (13), respectively;

3 and

4 (2) by inserting after paragraph (3) the fol5 lowing:

6 ‘‘(4) INDIVIDUAL PROPERTY PURCHASER.—The

7 term ‘individual property purchaser’, with respect to

8 an individual cabin site described in section 1004(b),

9 means a person (including CFRA or a lessee) that

10 purchases that cabin site.

11 (b) SALE OF PROPERTIES.—Section 1004 of title X

12 of division C of the Omnibus Consolidated and Emergency

13 Supplemental Appropriations Act, 1999, is amended—

14 (1) in subsection (c)(2) (112 Stat. 2681–

15 713)—

16 (A) by redesignating subparagraph (B) as

17 subparagraph (C); and

18 (B) by inserting after subparagraph (A)

19 the following:

20 ‘‘(B) APPRAISAL.—

21 ‘‘(i) APPLICABIITY.—In carrying out

22 this paragraph, the requirements of this

23 subparagraph shall apply to the greatest

24 extent practicable and consistent with the
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1 Uniform Appraisal Standards for Federal

2 Land Acquisition.

3 ‘‘(ii) USE OF EARLIER APPRAISAL.—

4 The appraisal under subparagraph (A)

5 shall use the Canyon Ferry Cabin Site ap6 praisal with a completion date of March

7 29, 1999, and amended June 11, 1999,

8 with an effective date of valuation of Octo9 ber 15, 1998, for the Bureau of Reclama10 tion, on the conditions stated in this sub11 paragraph.

12 ‘‘(iii) MODIFICATIONS.—The contract

13 appraisers that conducted the original ap14 praisal having an effective date of valu15 ation of October 15, 1998, for the Bureau

16 of Reclamation shall make appropriate

17 modifications to permit recalculation of the

18 lot values established in the original ap19 praisal into an updated appraisal, the

20 function of which shall be to provide mar21 ket values for the sale of each of the 265

22 Canyon Ferry Cabin site lots.

23 ‘‘(iv) CHANGES IN PROPERTY CHARAC24 TERISTICS.—If there are any changes in

25 the characteristic of a property that form
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1 part of the basis of the updated appraisal

2 (including a change in size, easement con3 siderations, or updated analyses of the

4 physical characteristics of a lot), the con5 tract appraisers shall make an appropriate

6 adjustment to the updated appraisal.

7 ‘‘(v) UPDATING.—Subject to the ap8 proval of CFRA and the Secretary, the fair

9 market values established by the apprais10 ers under this paragraph may be further

11 updated periodically by the contract ap12 praisers through appropriate market anal13 yses.

14 ‘‘(vi) RECONSIDERATION.—The Bu15 reau of Reclamation and the 265 Canyon

16 Ferry cabin owners have the right to seek

17 reconsideration, before commencement of

18 the updated appraisal, of the assumptions

19 that the appraisers used in arriving at the

20 fair market values derived in the original

21 appraisal.

22 ‘‘(vii) CONTINUING VALIDITY.—The

23 October 15, 1998, Canyon Ferry Cabin

24 Site original appraisal, as provided for in

25 this paragraph, shall remain valid for use
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1 by the Bureau of Reclamation in the sale

2 process for a period of not less than 3

3 years from the date of completion of the

4 updated appraisal, to the extent consistent

5 with the Uniform Appraisal Standards for

6 Federal Land Acquisition.’’;

7 (2) in subsection (d) (112 Stat. 2681–713)—

8 (A) in paragraph (1)(D), by adding at the

9 end the following:

10 ‘‘(iii) REMAINING LEASES.—

11 ‘‘(I) CONTINUATION OF

12 LEASES.—The remaining lessees shall

13 have a right to continue leasing

14 through August 31, 2014.

15 ‘‘(II) RIGHT TO CLOSE.—The re16 maining lessees shall have the right to

17 close under the terms of the sale at

18 any time before August 31, 2014. On

19 termination of the lease either by ex20 piration under the terms of the lease

21 or by violation of the terms of the

22 lease, all personal property and im23 provements will be removed, and the

24 cabin site shall remain in Federal

25 ownership.’’; and
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1 (B) in paragraph (2)—

2 (i) in the matter preceding subpara3 graph (A), by inserting ‘‘or if no one (in4 cluding CFRA) bids,’’ after ‘‘bid’’; and

5 (ii) in subparagraph (D)—

6 (I) by striking ‘‘12 months’’ and

7 inserting ‘‘36 months’’; and

8 (II) by adding at the end the fol9 lowing: ‘‘If the requirement of the

10 preceding sentence is not met, CFRA

11 may close on all remaining cabin sites

12 or up to the 75 percent requirement.

13 If CFRA does not exercise either such

14 option, the Secretary shall conduct

15 another sale for the remaining cabin

16 sites to close immediately, with pro17 ceeds distributed in accordance with

18 section 1008.’’;

19 (3) by striking subsection (e) (112 Stat. 2681–

20 714) and inserting the following:

21 ‘‘(e) ADMINISTRATIVE COSTS.—

22 ‘‘(1) ALLOCATION OF FUNDING.—The Sec23 retary shall allocate all funding necessary to conduct

24 the sales process for the sale of property under this

25 title.
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1 ‘‘(2) REIMBURSEMENT.—Any reasonable ad2 ministrative costs incurred by the Secretary (includ3 ing the costs of survey and appraisals incident to the

4 conveyance under subsection (a)) shall be propor5 tionately reimbursed by the property owner at the

6 time of closing.’’; and

7 (4) by striking subsection (f) (112 Stat. 2681–

8 714) and inserting the following:

9 ‘‘(f) TIMING.—The Secretary shall—

10 ‘‘(1) immediately begin preparing for the sales

11 process on enactment of this Act; and

12 ‘‘(2) not later than 1 year after the date of en13 actment of this Act, and in accordance with all ap14 plicable laws, begin conveying the property described

15 in subsection (b).’’.

16 (c) MONTANA FISH AND WILDLIFE CONSERVATION

17 TRUST.—Section 1007(b) of title X of division C of the

18 Omnibus Consolidated and Emergency Supplemental Ap19 propriations Act, 1999 (112 Stat. 2681–715), is

20 amended—

21 (1) in subsection (c)—

22 (A) in paragraph (1), in the matter pre23 ceding subparagraph (A), by striking ‘‘trust

24 manager’’ and inserting ‘‘trust manager (re-
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1 ferred to in this section as the ‘trust man2 ager’)’’;

3 (B) in paragraph (2)(A), in the matter

4 preceding clause (i), by striking ‘‘agency

5 Board’’ and inserting ‘‘Agency Board (referred

6 to in this section as the ‘Joint State-Federal

7 Agency Board’)’’; and

8 (C) in paragraph (3)(A), by striking ‘‘Ad9 visory Board’’ and inserting ‘‘Advisory Board

10 (referred to in this section as the ‘Citizen Advi11 sory Board’)’’; and

12 (2) by adding at the end the following:

13 ‘‘(f) RECREATION TRUST AGREEMENT.—

14 ‘‘(1) IN GENERAL.—The Trust, acting through

15 the trust manager, in consultation with the Joint

16 State-Federal Agency Board and the Citizen Advi17 sory Board, shall enter into a legally enforceable

18 agreement with CFRA (referred to in this section as

19 the ‘Recreation Trust Agreement’).

20 ‘‘(2) CONTENTS.—The Recreation Trust Agree21 ment shall provide that—

22 ‘‘(A) on receipt of proceeds of the sale of

23 a property under section 1004, the Trust shall

24 loan up to $3,000,000 of the proceeds to

25 CFRA;
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1 ‘‘(B) CFRA shall deposit all funds bor2 rowed under subparagraph (A) in the Canyon

3 Ferry-Broadwater County Trust;

4 ‘‘(C) CFRA and the individual purchasers

5 shall repay the principal of the loan to the

6 Trust as soon as reasonably practicable in ac7 cordance with a repayment schedule specified in

8 the loan agreement; and

9 ‘‘(D) until such time as the principal is re10 paid in full, CFRA and the individual pur11 chasers shall make an annual interest payment

12 on the outstanding principal of the loan to the

13 Trust at an interest rate determined in accord14 ance with paragraph (4)(C).

15 ‘‘(3) TREATMENT OF INTEREST PAYMENTS.—

16 All interest payments received by the Trust under

17 paragraph (2)(D) shall be treated as earnings under

18 subsection (d)(2).

19 ‘‘(4) FIDUCIARY RESPONSIBILITY.—In negoti20 ating the Recreation Trust Agreement, the trust

21 manager shall act in the best interests of the Trust

22 to ensure—

23 ‘‘(A) the security of the loan;

24 ‘‘(B) timely repayment of the principal;

25 and
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1 ‘‘(C) payment of a fair interest rate, of not

2 less than 6 nor more than 8 percent per year,

3 based on the length of the term of a loan that

4 is comparable to the term of a traditional home

5 mortgage.

6 ‘‘(g) RESTRICTION ON DISBURSEMENT.—Except as

7 provided in subsection (f), the trust manager shall not dis8 burse any funds from the Trust until August 1, 2001, as

9 provided for in the Recreation Trust Agreement, unless

10 Broadwater County, at an earlier date, certifies that the

11 Canyon Ferry-Broadwater County Trust has been fully

12 funded in accordance with this title.

13 ‘‘(h) CONDITION TO SALE.—No closing of property

14 under section 1004 shall be made until the Recreation

15 Trust Agreement is entered into under subsection (f)’’.

16 (d) CANYON FERRY-BROADWATER COUNTY

17 TRUST.—Section 1008(b) of title X of division C of the

18 Omnibus Consolidated and Emergency Supplemental Ap19 propriations Act, 1999 (112 Stat. 2681–718), is

20 amended—

21 (1) by striking paragraph (1) and inserting the

22 following:

23 ‘‘(1) AGREEMENT.—

24 ‘‘(A) CONDITION TO SALE.—No closing of

25 property under section 1004 shall be made until
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1 CFRA and Broadwater County enter into a le2 gally enforceable agreement (referred to in this

3 paragraph as the ‘Contributions Agreement’)

4 concerning contributions to the Trust.

5 ‘‘(B) CONTENTS.—The Contributions

6 Agreement shall require that on or before Au7 gust 1, 2001, CFRA shall ensure that

8 $3,000,000 in value is deposited in the Canyon

9 Ferry-Broadwater County Trust from 1 or

10 more of the following sources:

11 ‘‘(i) Direct contributions made by the

12 purchasers on the sale of each cabin site.

13 ‘‘(ii) Annual contributions made by

14 the purchasers.

15 ‘‘(iii) All other monetary contribu16 tions.

17 ‘‘(iv) In-kind contributions, subject to

18 the approval of the County.

19 ‘‘(v) All funds borrowed by CFRA

20 under section 1007(f).

21 ‘‘(vi) Assessments made against the

22 cabin sites made under a county park dis23 trict or any similar form of local govern24 ment under the laws of the State of Mon25 tana.
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1 ‘‘(vii) Any other contribution, subject

2 to the approval of the County.’’;

3 (2) striking paragraph (3);

4 (3) by redesignating paragraph (2) as para5 graph (3); and

6 (4) by inserting after paragraph (1) the fol7 lowing:

8 ‘‘(2) ALTERNATIVE FUNDING SOURCE.—If

9 CFRA agrees to form a county park district under

10 section 7–16–2401 et seq., of the Montana Code An11 notated, or any other similar form of local govern12 ment under the laws of the State of Montana, for

13 the purpose of providing funding for the Trust pur14 suant to the Contributions Agreement, CFRA and

15 Broadwater County may amend the Contributions

16 Agreement as appropriate, so long as the monetary

17 obligations of individual property purchases under

18 the Contributions Agreement as amended are sub19 stantially similar to those specified in paragraph

20 (1).’’.

21 (e) TECHNICAL CORRECTIONS.—Title X of division

22 C of the Omnibus Consolidated and Emergency Supple23 mental Appropriations Act, 1999 is amended—
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1 (1) in section 1001 (112 Stat. 2681–710), by

2 striking ‘‘section 4(b)’’ and inserting ‘‘section

3 1004(b)’’;

4 (2) in section 1003 (112 Stat. 2681–711)—

5 (A) in paragraph (1), by striking ‘‘section

6 8’’ and inserting ‘‘section 1008’’;

7 (B) in paragraph (6), by striking ‘‘section

8 7’’ and inserting ‘‘section 1007’’;

9 (C) in paragraph (8)—

10 (i) in subparagraph (A), by striking

11 ‘‘section 4(b)’’ and inserting ‘‘1004(b)’’;

12 and

13 (ii) in subparagraph (B), by striking

14 ‘‘section 4(b)(1)(B)’’ and inserting ‘‘sec15 tion 1004(b)(1)(B)’’; and

16 (D) in paragraph (9), by striking ‘‘section

17 4’’ and inserting ‘‘section 104’’; and

18 (3) in section 1004 (112 Stat. 2681–712)—

19 (A) in subsection (b)(3)(B)(ii)(II), by

20 striking ‘‘section 4(a)’’ and inserting ‘‘section

21 1004(a)’’; and

22 (B) in subsection (d)(2)(G), by striking

23 ‘‘section 6’’ and inserting ‘‘section 1006’’.

Æ