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[Congressional Bills 105th Congress]
[From the U.S. Government Publishing Office]
[H.R. 919 Introduced in House (IH)]

105th CONGRESS
  1st Session
                                H. R. 919

 To establish fair market value pricing of Federal natural assets, and 
                          for other purposes.

_______________________________________________________________________

                    IN THE HOUSE OF REPRESENTATIVES

                             March 4, 1997

 Mr. Miller of California (for himself, Mr. Sanders, Ms. Woolsey, Mr. 
Meehan, Mr. Kennedy of Rhode Island, Mr. Hinchey, Mr. Yates, Mr. Brown 
of California, Mr. Andrews, Mrs. Lowey, Mr. Frank of Massachusetts, Ms. 
      Pelosi, Mr. Nadler, Mr. McGovern, Mr. Sabo, Mr. Kennedy of 
  Massachusetts, Ms. Rivers, Mr. Stark, Mrs. Maloney of New York, Mr. 
    Vento, Ms. Furse, Ms. Roybal-Allard, Mr. Evans, Mr. Markey, Mr. 
   Abercrombie, Ms. Slaughter, Mr. Schumer, Mr. Olver, Mr. Clay, Mr. 
Porter, Mr. Lewis of Georgia, Ms. Eshoo, Mr. Waxman, Mr. Gejdenson, Ms. 
  Lofgren, and Ms. DeLauro) introduced the following bill; which was 
    referred to the Committee on Resources, and in addition to the 
     Committees on Agriculture, and the Budget, for a period to be 
subsequently determined by the Speaker, in each case for consideration 
  of such provisions as fall within the jurisdiction of the committee 
                               concerned

_______________________________________________________________________

                                 A BILL

 
 To establish fair market value pricing of Federal natural assets, and 
                          for other purposes.

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

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``Public Resources 
Deficit Reduction Act of 1997''.
    (b) Table of Contents.--

Sec. 1. Short title; table of contents.
                      TITLE I--GENERAL PROVISIONS

Sec. 101. Fair market value for resource disposal.
Sec. 102. Fees from program beneficiaries.
Sec. 103. Revenues from sale, lease, and transfer of assets.
                  TITLE II--REVENUE FROM MINING CLAIMS

Sec. 201. Royalty.
Sec. 202. Abandoned minerals mine reclamation fund.
Sec. 203. Limitation on patent issuance.
Sec. 204. Mining claim maintenance requirements.
Sec. 205. Definitions.
        TITLE III--USE OR DISPOSAL OF FEDERAL NATURAL RESOURCES

Sec. 301. Annual domestic livestock grazing fee.
Sec. 302. Elimination of below-cost sales of timber from national 
                            forest system lands.
Sec. 303. Timberland suitability.
Sec. 304. Cost of water used to produce crops on production flexibility 
                            contract acreage.
Sec. 305. Reduction in maximum amount of payments under agricultural 
                            assistance programs to reflect receipt of 
                            Federal irrigation water.
Sec. 306. Off budget expenditures.
Sec. 307. Deposit of Taylor Grazing Act receipts in Treasury.
Sec. 308. Repeal of livestock feed assistance program.
Sec. 309. Right-of-way permits.
Sec. 310. Oil and gas rentals.
Sec. 311. Improvement of minerals management service royalty 
                            collection.
                  TITLE IV--NATIONAL PARK CONCESSIONS

Sec. 401. Findings and policy.
Sec. 402. Definitions.
Sec. 403. Repeal of Concessions Policy Act of 1965.
Sec. 404. Concession contracts and other authorizations.
Sec. 405. Competitive selection process.
Sec. 406. Franchise fees.
Sec. 407. Use of franchise fees.
Sec. 408. Duration of contract.
Sec. 409. Transfer of contract.
Sec. 410. Protection of concessioner investment.
Sec. 411. Rates and charges to public.
Sec. 412. Concessioner performance evaluation.
Sec. 413. Recordkeeping requirements.
Sec. 414. Exemption from certain lease requirements.
Sec. 415. No effect on ANILCA provisions.
Sec. 416. Implementation.
Sec. 417. Authorization of appropriations.

                      TITLE I--GENERAL PROVISIONS

SEC. 101. FAIR MARKET VALUE FOR RESOURCE DISPOSAL.

    (a) In General.--Notwithstanding any other provision of law, no 
timber, minerals, forage, or other natural resource owned by the United 
States, no Federally owned water, and no hydroelectric energy generated 
at a Federal facility may be sold, leased, or otherwise disposed of by 
any department, agency, or instrumentality of the United States for an 
amount less than fair market value, as determined by such department, 
agency, or instrumentality.
    (b) Existing Contracts, Leases, Etc.--
            (1) Existing arrangements.--The provisions of subsection 
        (a) shall not apply to any existing contract, lease, or other 
        binding arrangement entered into before the date of the 
        enactment of this Act unless such contract, lease or other 
        arrangement is renewed or extended after such date of 
        enactment.
            (2) Arrangements entered into in 5-year period.--The 
        provisions of subsection (a) shall take effect on the date 5 
        years after the date of enactment of this Act in the case of 
        any contract, lease, or other binding arrangement entered into 
        or renewed or extended after such date but before the date 5 
        years after such date.
            (3) Arrangements entered into after 5 years.--The 
        provisions of subsection (a) shall apply immediately to all 
        contracts, leases, or other binding arrangements entered into 
        or renewed or extended after the date 5 years after the 
        enactment of this Act.
    (c) Waiver.--The President may waive the requirements of subsection 
(a) whenever the President determines that such waiver is in the 
national interest. The President shall submit a notice to Congress 
containing an explanation of the reasons for any such determination 
within 60 days after the date of the determination.

SEC. 102. FEES FROM PROGRAM BENEFICIARIES.

    (a) General Authority.--The Secretary of the Interior and the 
Secretary of Agriculture are each authorized to establish and collect 
from persons subject to programs administered by each such Secretary 
such user fees as may be necessary to reimburse the United States for 
the expenses incurred in administering such programs. The aggregate 
amount of fees that may be assessed and collected under this section by 
each such Secretary in any fiscal year from persons subject to any such 
program shall not exceed the aggregate amount of expenses incurred in 
administering such program in such fiscal year.
    (b) Effective Date; Oil and Gas Lease Transfers.--The Secretary of 
the Interior and the Secretary of Agriculture may, by rule, establish 
the applicable effective date of any fee to be imposed under this 
section, except that fees shall be established and collected under this 
section from each person receiving a transfer of a Federal onshore oil 
and gas lease after the date of the enactment of this section.

SEC. 103. REVENUES FROM SALE, LEASE, AND TRANSFER OF ASSETS.

    (a) In General.--Section 1105(a) of chapter 11 of title 31, United 
States Code, is amended by adding at the end the following new 
paragraph:
            ``(31) a separate statement of--
                    ``(A) projected revenues during the fiscal year for 
                which the budget is submitted from the anticipated 
                sale, lease, or transfer of any physical asset; and
                    ``(B) the estimated price at which this asset or a 
                comparable asset would be sold in an arms length 
                transaction in the private sector;
        asset by asset and aggregated by major functional category.''.
    (b) Effective Date.--The amendment made by subsection (a) shall 
become effective for fiscal year 1998 and shall be fully reflected in 
the fiscal year 1999 budget submitted by the President in February 1998 
as required by section 1105(a) of title 31, United States Code.

                  TITLE II--REVENUE FROM MINING CLAIMS

SEC. 201. ROYALTY.

    (a) Reservation of Royalty.--Each person producing locatable 
minerals (including associated minerals) from any mining claim located 
under the general mining laws, or mineral concentrates derived from 
locatable minerals produced from any mining claim located under the 
general mining laws, as the case may be, shall pay a royalty of 5 
percent of the net smelter return from the production of such locatable 
minerals or concentrates, as the case may be.
    (b) Royalty Payments.--Each person responsible for making royalty 
payments under this section shall make such payments to the Secretary 
not later than 30 days after the end of the calendar month in which the 
mineral or mineral concentrates are produced and first placed in 
marketable condition, consistent with prevailing practices in the 
industry.
    (c) Reporting Requirements.--All persons holding mining claims 
located under the general mining laws shall provide to the Secretary 
such information as determined necessary by the Secretary to ensure 
compliance with this section, including, but not limited to, quarterly 
reports, records, documents, and other data. Such reports may also 
include, but not be limited to, pertinent technical and financial data 
relating to the quantity, quality, and amount of all minerals extracted 
from the mining claim.
    (d) Audits.--The Secretary is authorized to conduct such audits of 
all persons holding mining claims located under the general mining laws 
as he deems necessary for the purposes of ensuring compliance with the 
requirements of this section.
    (e) Disposition of Receipts.--All receipts from royalties collected 
pursuant to this section shall be deposited into the Fund established 
under section 202.
    (f) Compliance.--Any person holding mining claims located under the 
general mining laws who knowingly or willfully prepares, maintains, or 
submits false, inaccurate, or misleading information required by this 
section, or fails or refuses to submit such information, shall be 
subject to a civil penalty of not more than $10,000 imposed by the 
Secretary.
    (g) Effective Date.--This section shall take effect with respect to 
minerals produced from a mining claim in calendar months beginning 
after the enactment of this Act.

SEC. 202. ABANDONED MINERALS MINE RECLAMATION FUND.

    (a) Establishment.--(1) There is established on the books of the 
Treasury of the United States a trust fund to be known as the Abandoned 
Minerals Mine Reclamation Fund (hereinafter referred to as the Fund). 
The Fund shall be administered by the Secretary.
    (2) The Secretary shall notify the Secretary of the Treasury as to 
what portion of the Fund is not, in his judgment, required to meet 
current withdrawals. The Secretary of the Treasury shall invest such 
portion of the Fund in public debt securities with maturities suitable 
for the needs of such Fund and bearing interest at rates determined by 
the Secretary of the Treasury, taking into consideration current market 
yields on outstanding marketplace obligations of the United States of 
comparable maturities. The income on such investments shall be credited 
to, and from a part of, the Fund.
    (b) Amounts.--The following amounts shall be credited to the Fund 
for the purposes of this title:
            (1) All moneys received from royalties under section 201 
        and the mining claim maintenance fee under section 204 of this 
        Act.
            (2) All donations by persons, corporations, associations, 
        and foundations for the purposes of this title.
    (c) Use and Objectives of the Fund.-- The Secretary is, subject to 
appropriations, authorized to use moneys in the Fund for the 
reclamation and restoration of land and water resources adversely 
affected by past mineral (other than coal and fluid minerals) and 
mineral material mining, including but not limited to, any of the 
following:
            (1) Reclamation and restoration of abandoned surface mined 
        areas.
            (2) Reclamation and restoration of abandoned milling and 
        processing areas.
            (3) Sealing, filling, and grading abandoned deep mine 
        entries.
            (4) Planting of land adversely affected by past mining to 
        prevent erosion and sedimentation.
            (5) Prevention, abatement, treatment and control of water 
        pollution created by abandoned mine drainage.
            (6) Control of surface subsidence due to abandoned deep 
        mines.
            (7) Such expenses as may be necessary to accomplish the 
        purposes of this section.
    (d) Eligible Areas.--(1) Land and waters eligible for reclamation 
expenditures under this section shall be those within the boundaries of 
States that have lands subject to the general mining laws--
            (A) which were mined or processed for minerals and mineral 
        materials or which were affected by such mining or processing, 
        and abandoned or left in an inadequate reclamation status prior 
        to the date of enactment of this Act;
            (B) for which the Secretary makes a determination that 
        there is no continuing reclamation responsibility under State 
        or Federal laws; and
            (C) for which it can be established that such lands do not 
        contain minerals which could economically be extracted through 
        the reprocessing or remining of such lands.
    (2) Notwithstanding paragraph (1), sites and areas designated for 
remedial action pursuant to the Uranium Mill Tailings Radiation Control 
Act of 1978 (42 U.S.C. 7901 and following) or which have been listed 
for remedial action pursuant to the Comprehensive Environmental 
Response Compensation and Liability Act of 1980 (42 U.S.C. 9601 and 
following) shall not be eligible for expenditures from the Fund under 
this section.
    (e) Fund Expenditures.--Moneys available from the Fund may be 
expended directly by the Director, Bureau of Land Management. The 
Director may also make such money available through grants made to the 
Chief of the United States Forest Service, and the Director of the 
National Park Service.
    (f) Authorization of Appropriations.--Amounts credited to the Fund 
are authorized to be appropriated for the purpose of this title without 
fiscal year limitation.

SEC. 203. LIMITATION ON PATENT ISSUANCE.

    No patent shall be issued by the United States for any mining or 
mill site claim located under the general mining laws unless the 
Secretary determines that, for the claim concerned a patent application 
was filed with the Secretary on or before September 30, 1994, and all 
requirements established under sections 2325 and 2326 of the Revised 
Statutes (30 U.S.C. 29 and 30) for vein or lode claims and sections 
2329, 2330, 2331, and 2333 of the Revised Statutes (30 U.S.C. 35, 36 
and 37) for placer claims, and section 2337 of the Revised Statutes (30 
U.S.C. 42) for mill site claims, as the case may be, were fully 
complied with by the applicant by that date.

SEC. 204. MINING CLAIM MAINTENANCE REQUIREMENTS.

    (a) In General.--(1) Effective October 1, 1998, the holder of each 
mining claim located under the general mining laws prior to the date of 
enactment shall pay to the Secretary an annual claim maintenance fee of 
$100 per claim per calendar year.
    (2) The holder of each mining claim located under the general 
mining laws subsequent to the date of enactment shall pay to the 
Secretary an annual claim maintenance fee of $125 per claim per 
calendar year.
    (b) Purchasing Power Adjustment.--The Secretary shall adjust the 
amount of the claim maintenance fee payable pursuant to subsection (a) 
for changes in the purchasing power of the dollar after the calendar 
year 1993, employing the Consumer Price Index for all urban consumers 
published by the Department of Labor as the basis for adjustment, and 
rounding according to the adjustment process of conditions of the 
Federal Civil Penalties Inflation Adjustment Act of 1990.
    (c) Time of Payment.--Each claim holder shall pay the claim 
maintenance fee payable under subsection (a) for any year on or before 
August 31 of each year, except that for the initial calendar year in 
which the location is made, the initial claim maintenance fee shall be 
paid at the time the location notice is recorded with the Bureau of 
Land Management.
    (d) Oil Shale Claims Subject to Claim Maintenance Fees Under Energy 
Policy Act of 1992.--The section shall not apply to any oil shale 
claims for which a fee is required to be paid under section 2511(e)(2) 
of the Energy Policy Act of 1992 (30 U.S.C. 242(e)(2)).
    (e) Claim Maintenance Fees Payable Under 1993 Act.--The claim 
maintenance fees payable under this section for any period with respect 
to any claim shall be reduced by the amount of the claim maintenance 
fees paid under section 10101 of the Omnibus Budget Reconciliation Act 
of 1993 with respect to that claim and with respect to the same period.
    (f) Waiver.--(1) The claim maintenance fee required under this 
section may be waived for a claim holder who certifies in writing to 
the Secretary that on the date the payment was due, the claim holder 
and all related parties held not more than 10 mining claims on land 
open to location. Such certification shall be made on or before the 
date on which payment is due.
    (2) For purposes of this subsection, with respect to any claim 
holder, the term ``related party'' means each of the following:
            (A) The spouse and dependent children (as defined in 
        section 152 of the Internal Revenue Code of 1986), of the claim 
        holder.
            (B) Any affiliate of the claim holder.
    (g) Co-Ownership.--Upon the failure of any one or more of several 
co-owners to contribute such co-owner or owners portion of the fee 
under this section, any co-owner who has paid such fee may, after the 
payment due date, give the delinquent co-owner or owners notice of such 
failure in writing (or by publication in the newspaper nearest the 
claim for at least once a week for at least 90 days). If at the 
expiration of 90 days after such notice in writing or by publication, 
any delinquent co-owner fails or refused to contribute his portion, his 
interest, in the claim shall become the property of the co-owners who 
have paid the required fee.

SEC. 205. DEFINITIONS.

    As used in this title:
            (1) The term ``affiliate'' means, with respect to any 
        person, each of the following:
                    (A) Any partner of such person.
                    (B) Any person owning at least 10 percent of the 
                voting shares of such person.
                    (C) Any person who controls, is controlled by, or 
                is under common control with such person.
            (2) The term ``locatable minerals'' means minerals not 
        subject to disposition under any of the following:
                    (A) The Mineral Leasing Act (30 U.S.C. 181 and 
                following).
                    (B) The Geothermal Steam Act of 1970 (30 U.S.C. 100 
                and following).
                    (C) The Act of July 31, 1947, commonly known as the 
                Materials Act of 1947 (30 U.S.C. 601 and following).
                    (D) The Mineral Leasing for Acquired Lands Act (30 
                U.S.C. 351 and following).
            (3) The term ``net smelter return'' has the same meaning 
        provided in section 613 of the Internal Revenue Code of 1986 
        (26 U.S.C. 613) for ``gross income from mining''.
            (4) The term ``Secretary'' means the Secretary of the 
        Interior.
            (5) The term ``general mining laws'' means those Acts which 
        generally comprise chapters 2, 12A, and 16, and sections 161 
        and 162 of title 30, United States Code.

        TITLE III--USE OR DISPOSAL OF FEDERAL NATURAL RESOURCES

SEC. 301. ANNUAL DOMESTIC LIVESTOCK GRAZING FEE.

    The Federal Land Policy and Management Act of 1976 is amended by 
inserting after section 401 (43 U.S.C. 1751) the following new section:

``SEC. 401A. ESTABLISHMENT OF FAIR MARKET VALUE GRAZING FEES.

    ``(a) Establishment of Annual Domestic Livestock Grazing Fee.--(1) 
Notwithstanding any other provision of law, the Secretary of 
Agriculture, with respect to National Forest System lands in the 16 
contiguous Western States (except National Grasslands) administered by 
the Forest Service where domestic livestock grazing is permitted under 
applicable law, shall establish an annual domestic livestock grazing 
fee equal to fair market value.
    ``(2) Notwithstanding any other provision of law, the Secretary of 
the Interior, with respect to public domain lands administered by the 
Bureau of Land Management where domestic livestock grazing is permitted 
under applicable law, shall establish an annual domestic livestock 
grazing fee equal to fair market value.
    ``(b) Calculation of Fair Market Value.--(1) For purposes of 
determining the annual domestic livestock grazing fee under this 
section, the Secretary concerned shall calculate fair market value 
using the following formula:

                                                                        
                                               Appraised Base Value x   
                                                 Forage Value Index     
            Fair Market Value=             -----------------------------
                                                         100            
                                                                        

    ``(2) For purposes of the formula in paragraph (1):
            ``(A) The term `Forage Value Index' means the Forage Value 
        Index (FVI) computed annually by the Economic Research Service, 
        United States Department of Agriculture, and set with the 1997 
        FVI equal to 100; and
            ``(B) The term `Appraised Base Value' means the 1983 
        Appraisal Value conclusions for mature cattle and horses 
        (expressed in dollars per head or per month), as determined in 
        the 1986 report prepared jointly by the Secretary of 
        Agriculture and the Secretary of the Interior entitled `Grazing 
        Fee Review and Evaluation', dated February 1986, on a west-wide 
        basis using the lowest appraised value of the pricing areas 
        adjusted for advanced payment and indexed to 1997.
    ``(c) Limitation on Fluctuations of Fees.--Notwithstanding the 
amount calculated under subsection (b) for a year, the domestic 
livestock grazing fee charged for any given year shall not increase nor 
decrease by more than 33.3 percent from the domestic livestock grazing 
fee for the previous year.
    ``(d) Effect on Executive Order.--Executive Order No. 12548, dated 
February 14, 1986 (51 Fed. Reg. 5985), shall not apply to grazing fees 
established pursuant to this section.
    ``(e) Effect on Grazing Advisory Boards.--The grazing advisory 
boards established pursuant to Secretarial action, notice of which was 
published in the Federal Register on May 14, 1986 (51 Fed. Reg. 17874), 
are abolished, effective as of the date of the enactment of this 
section, and the advisory functions exercised by such boards shall be 
exercised only by the appropriate councils established under section 
309 of this Act.
    ``(f) Use of Fees and Range Improvement Funds.--Funds appropriated 
pursuant to section 5 of the Public Rangelands Improvement Act of 1978 
(43 U.S.C. 1904) or any other provision of law related to disposition 
of the Federal share of receipts from fees for grazing on public domain 
lands or National Forest lands in the 16 contiguous western States 
shall be used for restoration and enhancement of fish and wildlife 
habitat, for restoration and improved management of riparian areas, and 
for implementation and enforcement of applicable land management plans, 
allotment plans, and regulations regarding the use of such lands for 
domestic livestock grazing. Such funds shall be distributed as the 
Secretary concerned considers advisable after consultation and 
coordination with the advisory councils established pursuant to section 
309 of this Act and other interested parties.
    ``(g) Commencement Date for Fees.--The first annual domestic 
livestock grazing fee required by this section shall apply with respect 
to the grazing season commencing on March 1, 1998.

SEC. 302. ELIMINATION OF BELOW-COST SALES OF TIMBER FROM NATIONAL 
              FOREST SYSTEM LANDS.

    (a) In General.--The National Forest Management Act of 1976 is 
amended by inserting after section 14 (16 U.S.C. 472a) the following 
new section:

``SEC. 14A. ELIMINATION OF BELOW-COST TIMBER SALES FROM NATIONAL FOREST 
              SYSTEM LANDS.

    ``(a) Requirement That Sale Revenues Exceed Costs.--On and after 
October 1, 2002, in appraising timber and setting a minimum bid for 
trees, portions of trees, or forest products located on National Forest 
System lands proposed for sale under section 14 or any other provision 
of law, the Secretary of Agriculture shall ensure that the estimated 
cash returns to the United States Treasury from each sale exceed the 
estimated costs to be incurred by the Federal Government in the 
preparation of the sale or as a result of the sale.
    ``(b) Costs To Be Considered.--For purposes of estimating under 
this section the costs to be incurred by the Federal Government from 
each timber sale, the Secretary shall assign to the sale the following 
costs:
            ``(1) The actual appropriated expenses for sale preparation 
        and harvest administration incurred or to be incurred by the 
        Federal Government from the sale and the payments to counties 
        to be made as a result of the sale.
            ``(2) A portion of the annual timber resource planning 
        costs, silvicultural examination costs, other resource support 
        costs, road design and construction costs, road maintenance 
        costs, transportation planning costs, appropriated 
        reforestation costs, timber stand improvement costs, forest 
        genetics costs, general administrative costs (including 
        administrative costs of the national and regional offices of 
        the Forest Service), and facilities construction costs of the 
        Federal Government directly or indirectly related to the timber 
        harvest program conducted on National Forest System lands.
    ``(c) Method of Allocating Costs.--The Secretary shall allocate the 
costs referred to in subsection (b)(2) to each unit of the National 
Forest System, and each proposed timber sale in such unit, on the basis 
of harvest volume.
    ``(d) Transitional Requirements.--To ensure the elimination of all 
below-cost timber sales by the date specified in subsection (a), the 
Secretary shall progressively reduce the number and size of below-cost 
timber sales on National Forest System lands as follows:
            ``(1) In fiscal years 1998 and 1999, the quantity of timber 
        sold in below-cost timber sales on National Forest System lands 
        shall not exceed 75 percent of the quantity of timber sold in 
        such sales in the preceding fiscal year.
            ``(2) In fiscal year 2000, the quantity of timber sold in 
        below-cost timber sales on National Forest System lands shall 
        not exceed 65 percent of the quantity of timber sold in such 
        sales in fiscal year 1998.
            ``(3) In fiscal year 2001, the quantity of timber sold in 
        below-cost timber sales on National Forest System lands shall 
        not exceed 50 percent of the quantity of timber sold in such 
        sales in the fiscal year 2000.
    ``(e) Below-Cost Timber Sale.--For purposes of this section, the 
term `below-cost timber sale' means a sale of timber in which the costs 
to be incurred by the Federal Government exceed the cash returns to the 
United States Treasury.''.
    (b) Findings.--Section 2 of the Forest and Rangeland Renewable 
Resources Planning Act of 1974 (16 U.S.C. 1600) is amended--
            (1) by striking ``and'' at the end of paragraph (6);
            (2) by striking the period at the end of paragraph (7) and 
        inserting ``; and''; and
            (3) by adding at the end the following new paragraph:
            ``(8) the practice of selling timber from National Forest 
        System lands for less than the cost to the Federal Government 
        of growing the timber and preparing the timber for sale is not 
        in the best interests of the United States, and such below-cost 
        sales should be eliminated in an orderly manner to achieve a 
        more economically and environmentally sound timber program for 
        the National Forest System.''.

SEC. 303. TIMBERLAND SUITABILITY.

    Subsection (k) of section 6 of the Forest and Rangeland Renewable 
Resources Planning Act of 1974 (16 U.S.C. 1604) is amended to read as 
follows:
    ``(k) Determination of Suitability of Lands for Timber 
Production.--
            ``(1) Determination required.--In revising land management 
        plans developed pursuant to this section, the Secretary shall 
        identify lands within the management area that are not suited 
        for timber production based on physical, economic, or other 
        relevant factors. The Secretary shall review the 
        identifications made under this paragraph during each revision 
        of the forest plan.
            ``(2) Evidence of economic unsuitability.--The Secretary 
        shall identify lands as economically unsuitable for timber 
        production under paragraph (1) if--
                    ``(A) the expected cash returns to the United 
                States Treasury that would result from the sale of 
                standing timber on the lands do not exceed the expected 
                costs that would be incurred by the Federal Government 
                in preparation or as a result of such sales; or
                    ``(B) the expected cash returns to the United 
                States Treasury that would result from the sale of 
                subsequent timber stands on the lands do not exceed the 
                expected costs that would be incurred by the Federal 
                Government in preparation or as a result of such sales.
            ``(3) Costs to be considered.--For purposes of estimating 
        under paragraph (2) the costs to be incurred by the Federal 
        Government from timber sales conducted on the lands being 
        reviewed, the Secretary shall assign to sales on such lands the 
        following costs:
                    ``(A) The appropriated expenses for sale 
                preparation and harvest administration that would be 
                incurred by the Federal Government from such sales and 
                the payments to counties that would be made as a result 
                of such sales.
                    ``(B) A portion of the annual timber resource 
                planning costs, silvicultural examination costs, other 
                resource support costs, road design and construction 
                costs, road maintenance costs, transportation planning 
                costs, appropriated reforestation costs, timber stand 
                improvement costs, forest genetics costs, general 
                administrative costs (including administrative costs of 
                the national and regional offices of the Forest 
                Service), and facilities construction costs of the 
                Federal Government directly or indirectly related to 
                the timber harvest program conducted on National Forest 
                System lands.
            ``(4) Method of allocating costs.--The Secretary shall 
        allocate the costs referred to in paragraph (3)(B) to each unit 
        of the National Forest System on the basis of harvest volume.
            ``(5) Prohibition on timber harvests on unsuitable lands.--
        In the case of lands identified under paragraph (1) as 
        unsuitable for timber production, no timber harvesting shall 
        occur on such lands for a period of 10 years or the life of the 
        plan, whichever is greater.
            ``(6) Definitions.--For purposes of this subsection:
                    ``(A) The term `standing timber' means an existing 
                stand of timber that has not been harvested.
                    ``(B) The term `subsequent timber stand' means a 
                regenerated stand of timber produced on land from which 
                standing timber has been harvested.''.

SEC. 304. COST OF WATER USED TO PRODUCE CROPS ON PRODUCTION FLEXIBILITY 
              CONTRACT ACREAGE.

    Section 9 of the Act of August 4, 1939 (commonly known as the 
Reclamation Project Act of 1939; 43 U.S.C. 485h) is amended by 
inserting at the end thereof the following new subsection:
    ``(g)(1) Any contract entered into under authority of this section 
or any other provision of Federal reclamation law shall require that 
the organization agree by contract with the Secretary to pay full cost 
for the delivery of water used in the production of any contract 
commodity on acreage subject to a production flexibility contract 
entered into under section 111 of the Agricultural Market Transition 
Act (7 U.S.C. 7211).
    ``(2) The Secretary shall announce the amount of the full cost 
payment for the succeeding year on or before July 1 of each year.
    ``(3) As used in this subsection:
            ``(A) The term `full cost' has the meaning given such term 
        in section 202(3) of the Reclamation Reform Act of 1982 (43 
        U.S.C. 390bb(3)).
            ``(B) The term `contract commodity' has the meaning given 
        such term in section 102(5) of the Agricultural Market 
        Transition Act (7 U.S.C. 7202(5)).
    ``(4) Paragraph (1) shall apply to any contract entered into or 
amended after the date of the enactment of this subsection.''.

SEC. 305. REDUCTION IN MAXIMUM AMOUNT OF PAYMENTS UNDER AGRICULTURAL 
              ASSISTANCE PROGRAMS TO REFLECT RECEIPT OF FEDERAL 
              IRRIGATION WATER.

    (a) Price Support Programs.--Title X of the Food Security Act of 
1985 is amended--
            (1) by redesignating sections 1001D (7 U.S.C. 1308-4) and 
        1001E (7 U.S.C. 1308-5) as sections 1001E and 1001F, 
        respectively; and
            (2) by inserting after section 1001C (7 U.S.C. 1308-3) the 
        following new section:

``SEC. 1001D. REDUCTION OF PAYMENT LIMITATIONS TO REFLECT RECEIPT OF 
              FEDERAL IRRIGATION WATER.

    ``(a) Reduction of Payment Limitations Required.--If a person 
subject to section 1001 receives Federal irrigation water for 
agricultural purposes from the operation of a Federal reclamation 
project, the payment limitations specified in paragraphs (1) and (2) of 
such section and applicable to such person shall be reduced for the 
year in which such person receives irrigation water. The amount of the 
reduction shall be equal to the total value during that year of the 
subsidy portion of the contract with such person for the delivery of 
the irrigation water.
    ``(b) Determination of Subsidy Portion of Water Contract.--The 
subsidy portion of an irrigation water delivery contract is equal to 
the amount by which full cost for the delivery of the irrigation water 
exceeds the actual contract price for the delivery of the water.
    ``(c) Definitions.--For purposes of this section, the terms 
`contract', `full cost', `irrigation water', and `project' have the 
meanings given such terms in section 202 of the Reclamation Reform Act 
of 1982 (43 U.S.C. 390bb).''.
    (b) Noninsured Crop Disaster Assistance.--Section 196(i) of the 
Federal Agriculture Improvement and Reform Act of 1996 (7 U.S.C. 
7333(i)) is amended--
            (1) by redesignating paragraph (5) as paragraph (6); and
            (2) by inserting after paragraph (4) the following new 
        paragraph:
            ``(5) Effect of receipt of irrigation water.--
                    ``(A) Reduction of payment limitation.--If a person 
                who receives payments under this section also receives, 
                during the same year, Federal irrigation water for 
                agricultural purposes from the operation of a Federal 
                reclamation project, the payment limitation specified 
                in paragraph (2) for such person shall be reduced for 
                that year. The amount of the reduction shall be equal 
                to the total value during that year of the subsidy 
                portion of the contract with such person for the 
                delivery of the irrigation water.
                    ``(B) Determination of subsidy portion of water 
                contract.--The subsidy portion of an irrigation water 
                delivery contract is equal to the amount by which full 
                cost for the delivery of the irrigation water exceeds 
                the actual contract price for the delivery of the 
                water.
                    ``(C) Definitions.--For purposes of this paragraph, 
                the terms `contract', `full cost', `irrigation water', 
                and `project' have the meanings given such terms in 
                section 202 of the Reclamation Reform Act of 1982 (43 
                U.S.C. 390bb).''.
    (c) Conforming Amendments.--Section 1001(5)(A) of the Food Security 
Act of 1985 (7 U.S.C. 1308(5)(A)) is amended by striking ``through 
1001C'' and inserting ``through 1001D''.

SEC. 306. OFF BUDGET EXPENDITURES.

    (a) Knutson-Vandenberg Fund.--Section 3 of the Act of June 9, 1930 
(commonly known as the Knutson-Vandenberg Act; 16 U.S.C. 576b), is 
amended by striking ``and shall constitute a special fund, which is 
hereby appropriated and made available until expended,'' in the second 
sentence and inserting ``and are authorized to be appropriated''.
    (b) Deposits from Brush Disposal.--The paragraph relating to 
deposits from brush disposal under the heading ``forest service'' in 
the Act of August 11, 1916 (39 Stat. 462; 16 U.S.C. 490), is amended by 
striking ``and constitute a special fund, which is hereby appropriated 
and shall remain available until expended'' and inserting ``and are 
authorized to be appropriated for the purpose of disposing of such 
brush and other debris''.
    (c) National Forests Roads and Trails.--Section 7 of Public Law 88-
657 (commonly known as the Forest Roads and Trails Act; 16 U.S.C. 538) 
is amended by striking ``may be placed in a fund to be available'' and 
inserting ``are authorized to be appropriated''.
    (d) Timber Salvage Sale Fund.--Section 303(d) of Public Law 96-451 
(16 U.S.C. 1606a) is amended by striking ``The Secretary of 
Agriculture'' and inserting ``In such amounts as are provided in 
advance in appropriations Acts, the Secretary of Agriculture''.

SEC. 307. DEPOSIT OF TAYLOR GRAZING ACT RECEIPTS IN TREASURY.

    Section 10 of the Act of June 28, 1934 (commonly known as the 
Taylor Grazing Act; 43 U.S.C. 315i), is amended by striking all after 
``miscellaneous receipts'' and inserting a period.

SEC. 308. REPEAL OF LIVESTOCK FEED ASSISTANCE PROGRAM.

    The Emergency Livestock Feed Assistance Act of 1988 (title VI of 
the Agricultural Act of 1949; 7 U.S.C. 1471-1471j) is repealed.

SEC. 309. RIGHT-OF-WAY PERMITS.

    (a) In General.--No permit, lease, or authorization for the use of 
any area of the public lands or National Forests for rights-of-way 
(including rights-of-way for power lines, oil and gas pipelines, water 
conveyances, and other utility lines) shall remain in force and effect 
after October 1, 1997, unless, by such date, and by October 1 of each 
year thereafter, the holder of such permit, lease, or authorization 
pays to the Secretary of the Interior or the Secretary of Agriculture, 
as appropriate, an amount equal to the fair market value, as determined 
by such Secretary, of the right to use and occupy such area for such 
purposes.
    (b) Definition.--For the purposes of this section, the term 
``public lands'' shall have the same meaning as defined in section 
103(e) of the Federal Land Policy Management Act of 1976 (43 U.S.C. 
1702(e)).

SEC. 310. OIL AND GAS RENTALS.

    The Mineral Leasing Act (30 U.S.C. 181 et seq.) is amended as 
follows:
            (1) In section 14 by striking out ``a rental of $1 per 
        acre'' and inserting ``a rental established by the Secretary of 
        the Interior'' and by adding the following at the end thereof: 
        ``The Secretary shall establish fair market value rental fees 
        under this section based upon the rental fees which would be 
        charged in arm's length transactions for comparable leases of 
        oil and gas resources on non-Federal land.''.
            (2) In section 17(d) by striking out ``rental of not less 
        than $1.50 per acre per year for the first through fifth years 
        of the lease and not less than $2 per acre per year for each 
        year thereafter'' and inserting ``rental established by the 
        Secretary of the Interior'' and by adding the following at the 
        end thereof: ``The Secretary shall establish fair market value 
        rental fees under this section based upon the rental fees which 
        would be charged in arms length transactions for comparable 
        leases of oil and gas resources on non-Federal land.''.
            (3) In section 21(a) by striking out ``rental, payable at 
        the beginning of each year, at the rate of 50 cents per acre 
        per annum, for the lands included in the lease,'' and inserting 
        ``rental established by the Secretary of the Interior'' and by 
        adding the following at the end thereof: ``The Secretary shall 
        establish fair market value rental fees under this section 
        based upon the rental fees which would be charged in arms 
        length transactions for comparable leases on non-Federal 
        land.''.
            (4) In section 31(e)(2) by striking ``rate of not less than 
        $10 per acre per year, or the inclusion in a reinstated lease 
        issued pursuant to the provisions of section 17(c) of this Act 
        of a requirement that future rentals shall be at a rate not 
        less than $5 per acre per year'' and inserting ``fair market 
        value rate (but not less than $10 per acre per year)''.
            (5) In section 31(f)(3) by striking out ``of not less than 
        $5 per acre per year'' and inserting ``established by the 
        Secretary at fair market value based upon the rental fees which 
        would be charged in arms length transactions for comparable 
        leases on non-Federal land''.

SEC. 311. IMPROVEMENT OF MINERALS MANAGEMENT SERVICE ROYALTY 
              COLLECTION.

    The Federal Oil and Gas Royalty Simplification and Fairness Act of 
1996 (Public Law No. 104-185; 30 U.S.C. 1701 et seq.) is amended by 
adding the following new subsection after subsection (l):
    ``(m) Assessment for Underreporting of Royalty.--(1) If there is 
any underreporting of royalty owed on production from any lease for any 
production month, the Secretary may make an assessment of 20 percent of 
the amount of that underreporting if any of the following circumstances 
occurs:
            ``(A) For a Federal lease, the underreporting exceeds 10 
        percent of the value of production which should have been 
        reported and exceeds $1,500, or the underreporting exceeds 5 
        percent of the value of production which should have been 
reported and exceeds $15,000.
            ``(B) For an Indian lease, the underreporting exceeds 10 
        percent of the value of production which should have been 
        reported and exceeds $125.
            ``(C) For either a Federal or Indian lease, no royalty was 
        paid on production from that lease for the production month 
        immediately preceding the month for which the underreporting 
        was submitted, regardless of the amount of the underreporting 
        or the amount of royalty owed.
    ``(2) For purposes of this subsection, the term `underreporting' 
means the amount by which the royalty on the value of the production 
which should have been reported exceeds the royalty on the value of the 
production which was reported.
    ``(3) The Secretary shall not impose the assessment specified in 
paragraph (1) if the underreporting is corrected before the date the 
person against whom the assessment is made receives written notice from 
the Secretary that an underreporting may have occurred.
    ``(4) The Secretary shall not impose the assessment specified in 
paragraph (1) with respect to an underreporting which is corrected in 
the course of performing an order to correct royalty accounting and 
recompute and pay royalties due. This exception does not apply to the 
specific instances of underreporting discovered during audit which 
formed the basis of the order to recompute and pay.
    ``(5)(A) The Secretary shall waive the portion of an assessment 
specified in paragraph (1) attributable to that portion of the 
underreporting for which a person demonstrates that--
            ``(i) the person had substantial authority for reporting 
        royalty on the value of the production on the basis on which it 
        was reported, or
            ``(ii) the person meets any other exception which the 
        Secretary may, by rule, establish.
    ``(B) For purposes of this paragraph, the term `substantial 
authority' means any of the following:
            ``(i) A controlling judicial or administrative decision 
        which has not been reversed, vacated, or overruled, or a 
        controlling regulation.
            ``(ii) A body of judicial or administrative decisions or 
        regulations which provide a reasoned basis to support the 
        person's action. Such a reasoned basis must be more than a 
        merely arguable theory which is unlikely to prevail in court 
        upon a complete review of the relevant facts and authorities.
            ``(iii) A legal question of first impression.
    ``(6) Interest shall not accrue on the amount of an assessment 
under this subsection during the pendency of any administrative appeal 
of the assessment which may be allowed by rule. No hearing on the 
record in such appeal shall be necessary before an assessment is made. 
No surety instrument shall be required to secure the amount of the 
assessment pending administrative appeal.
    ``(7) An assessment under this subsection shall apply only to an 
underreporting occurring after the date of enactment of this 
subsection.
    ``(8) Notwithstanding any provision of section 206 of this Act, all 
assessments collected under this subsection shall be deposited to the 
same accounts in the Treasury or paid to the same recipients in the 
same manner as the royalty with respect to which such assessment is 
made.
    ``(9) For purposes of this subsection, the definitions in section 2 
of this Act shall be deemed to also apply to coal, any other mineral, 
geothermal steam, or associated geothermal resources.''.

                  TITLE IV--NATIONAL PARK CONCESSIONS

SEC. 401. FINDINGS AND POLICY.

    (a) Findings.--In furtherance of the Act of August 25, 1916 (39 
Stat. 535), as amended (16 U.S.C. 1, 2-4), which directs the Secretary 
of the Interior to administer areas of the National Park System in 
accordance with the fundamental purpose of conserving their scenery, 
wildlife, natural and historic objects, and providing for their 
enjoyment in a manner that will leave them unimpaired for the enjoyment 
of future generations, the Congress finds that the preservation and 
conservation of park resources and values requires that such public 
accommodations, facilities, and services within such areas as the 
Secretary, in accordance with this Act, determines necessary and 
appropriate--
            (1) should be provided only under carefully controlled 
        safeguards against unregulated and indiscriminate use so that 
        visitation will not unduly impair park resources and values; 
        and
            (2) should be limited to locations and designs consistent 
        to the highest practicable degree with the preservation and 
        conservation of park resources and values.
    (b) Policy.--It is the policy of the Congress that--
            (1) development on Federal lands within a park shall be 
        limited to those facilities that the Secretary determines are 
        necessary and appropriate for public use and enjoyment of the 
        park in which such facilities and services are located;
            (2) development within a park should be consistent to the 
        highest practicable degree with the preservation and 
        conservation of the park's resources and values;
            (3) park facilities and services the Secretary determines 
        suitable to be provided by parties other than the Secretary 
        should be provided by private persons, corporations, or other 
        entities, except when no private interest is qualified and 
        willing to provide such facilities and services;
            (4) if the Secretary determines that development should 
        occur within a park, such development shall be designed, 
        located, and operated in a manner that is consistent with the 
        purposes for which such park was established;
            (5) the right to provide such services and to develop or 
        utilize facilities should be awarded to the person, 
        corporation, or entity submitting the best proposal through a 
        competitive selection process; and
            (6) such facilities or services should be provided to the 
        public at reasonable rates.

SEC. 402. DEFINITIONS.

    As used in this title:
            (1) The term ``concessioner'' means a person, corporation, 
        or other entity to whom a concession contract has been awarded.
            (2) the term ``concession contract'' means a contract, or 
        permit, (but not an authorization issued pursuant to section 
        404(b) of this title) to provide facilities or services, or 
        both, at a park.
            (3) The term ``facilities'' means improvements to real 
        property within parks used to provide accommodations, 
        facilities, or services to park visitors.
            (4) The term ``franchise fee'' means the fee required by a 
        concession contract to be paid to the United States in 
        consideration for the privileges afforded by such contract to 
        the holder thereof, which may be expressed as a percentage of 
        revenues derived by the contract holder from activities 
        authorized by the contract, and which shall be in addition to 
        fees required to be paid to the United States for the use of 
        federally-owned buildings or other facilities.
            (5) The term ``fund'' means the Park Improvement Fund 
        established under section 8(b).
            (6) The term ``park'' means a unit of the National Park 
        System.
            (7) The term ``proposal'' means the complete proposal for a 
        concession contract offered by a potential or existing 
        concessioner in response to the minimum requirements for the 
        contract established by the Secretary.
            (8) The term ``Secretary'' means the Secretary of the 
        Interior.

SEC. 403. REPEAL OF CONCESSIONS POLICY ACT OF 1965.

    (a) Repeal.--The Act of October 9, 1965, Public Law 89-249 (79 
Stat. 969, 16 U.S.C. 20-20g), entitled ``An Act relating to the 
establishment of concession policies in the areas administered by 
National Park Service and for other purposes'', is hereby repealed. The 
repeal of such Act shall not affect the validity of any contract 
entered into under such Act, but the provisions of this title shall 
apply to any such contract except to the extent such provisions are 
inconsistent with the express terms and conditions of the contract. 
Nothing in this title that is inconsistent with a prospectus issued 
before January 27, 1995, shall apply to the contract with respect to 
which such prospectus was issued. The Secretary is authorized to award 
a concession contract prior to promulgation of new regulations to 
implement this title if the Secretary determines that protection of 
public health and safety warrant such action, provided that such 
contract is consistent with this title.
    (b) Transition.--Nothing in this Act that is inconsistent with a 
prospectus issued before April 1, 1994, shall apply to the contract 
with respect to which such prospectus was issued. The Secretary is 
authorized to award a concession contract prior to promulgation of new 
regulations to implement this Act if the Secretary determines that 
protection of public health and safety warrant such action, provided 
that such contract is consistent with this Act.
    (c) Conforming Amendment.--The fourth sentence of section 3 of this 
Act of August 25, 1916 (16 U.S.C. 3; 39 Stat. 535) is amended by 
striking all through ``no natural'' and inserting in lieu thereof, ``No 
natural''.

SEC. 404. CONCESSION CONTRACTS AND OTHER AUTHORIZATIONS.

    (a) Concessions.--(1) Subject to the findings and policy stated in 
section 401 of this title and the provisions of this section, the 
Secretary may award concession contracts that authorize private 
persons, corporations, or other entities to provide services to park 
visitors and to utilize facilities if the Secretary determines that 
such award is the appropriate means for such authorization.
    (2) Concession contracts shall be awarded only to the extent that 
the Secretary finds that the services to be provided and the facilities 
to be utilized pursuant to each such contract are necessary and 
appropriate for the accommodation of visitors to a park.
    (3) The provision of services and the utilization of facilities 
pursuant to concession contracts shall be consistent with all 
applicable requirements of law, including laws relating generally to 
the administration and management of units of the National Park 
Service, and with the general management plan, concessions plan, and 
other relevant plans developed by the Secretary for the relevant park.
    (b) Other Authorizations.--(1) To the extent specified in this 
subsection, the Secretary, upon request, may authorize a private 
person, corporation, or other entity to provide services to park 
visitors otherwise than by award of a concession contract.
    (2)(A) The authority of this subsection may be used only to 
authorize provision of services to park visitors that the Secretary 
determines have minimal impact on park resources and values and will be 
consistent with the purposes for which the park was established and 
with all applicable management plans for such park.
    (B) The Secretary shall require payment of a reasonable fee for 
issuance of an authorization under this subsection. The fees shall 
remain available without further appropriation to be used to recover 
the costs of managing and administering this subsection.
    (C) The Secretary shall require that the provision of services 
under such an authorization be accomplished in a manner consistent to 
the highest practicable degree with the preservation and conservation 
of park resources and values.
    (D) The Secretary shall take appropriate steps to limit the 
liability of the United States arising from the provision of services 
under such an authorization.
    (E) The Secretary shall no authority under this subsection to issue 
more authorizations than are consistent with the preservation and 
proper management of park resources and values, and shall establish 
such other conditions for issuance of such an authorization as the 
Secretary determines appropriate for protection of visitors, provision 
of adequate and appropriate visitor services, and protection and proper 
management of the resources and values of the National Park System.
    (3) Any authorization issued under this subsection shall be limited 
to commercial operations with annual gross revenues of not more than 
$25,000 resulting from the services provided within the park pursuant 
to such authorization.
    (4) The term of any authorization issued under this subsection 
shall not exceed 2 years.
    (5) An entity seeking or obtaining an authorization pursuant to 
this subsection shall not be precluded from also submitting proposals 
for concession contracts.

SEC. 405. COMPETITIVE SELECTION PROCESS.

    (a) In General.--(1) Except as provided in subsection (b), and 
consistent with the provisions of subsection (g), any concession 
contract entered into pursuant to this title shall be awarded to the 
person submitting the best proposal, as determined by the Secretary 
through the competitive selection process specified in this section.
    (2) Within 180 days after the date of enactment of this title, the 
Secretary shall promulgate appropriate regulations establishing a 
process to implement this section.
    (3) The regulations referred to in paragraph (2) shall include 
provisions for establishing a method or procedure for the resolution of 
disputes between the Secretary and a concessioner in those instances 
where the Secretary has been unable to meet conditions or requirements 
or provide such services, if any, as set forth in a prospectus pursuant 
to sections 405(c)(2) (D) and (E).
    (b) Temporary Contract.--Notwithstanding the provisions of 
subsection (a), the Secretary may award on a noncompetitive basis a 
temporary concession contract if the Secretary determines such an award 
to be necessary in order to avoid interruption of services to the 
public at a park. Prior to making such a determination, the Secretary 
shall take all reasonable and appropriate steps to consider alternative 
actions to avoid such interruptions.
    (c) Prospectus.--(1) Prior to soliciting proposals for a concession 
contract at a park, the Secretary shall prepare a prospectus soliciting 
proposals, shall publish a notice of its availability at least once in 
such local or national newspapers or trade publications as the 
Secretary determines appropriate, and shall make such prospectus 
available upon request to all interested parties.
    (2) The prospectus shall include, but need not be limited to, the 
following information:
            (A) The minimum requirements for such contract, as set 
        forth in subsection (d).
            (B) The terms and conditions of the existing concession 
        contract awarded for such park, if any, including all fees and 
        other forms of compensation provided to the United States by 
        the concessioner.
            (C) Other authorized facilities or services which may be 
        included in a proposal.
            (D) Facilities and services to be provided by the Secretary 
        to the concessioner, if any, including but not limited to, 
        public access, utilities, and buildings.
            (E) Minimum public services to be offered within a park by 
        the Secretary, including but not limited to, interpretive 
        programs, campsites, and visitor centers.
            (F) Such other information related to the concessions 
        operation as is provided by the Secretary pursuant to a 
        concession contract or is otherwise available to the Secretary, 
        as the Secretary determines is necessary to allow for the 
        submission of competitive proposals.
    (d) Minimum Proposal Requirements.--(1) No proposal shall be 
considered which fails to meet the minimum requirements included in the 
prospectus. Such minimum requirements shall include payment to the 
United States of a franchise fee and shall also include, but need not 
be limited to, the following:
            (A) The minimum acceptable franchise fee, fees for use of 
        any Federal buildings or other facilities, and any other fees 
        to be paid to the United States.
            (B) The duration of the contract.
            (C) Any facilities, services, or capital investments 
        required to be provided by the concessioner.
            (D) Measures that will be required in order to ensure the 
        protection and preservation of park resources and values.
    (2) The Secretary may reject any proposal, notwithstanding the 
amount of franchise fee offered, if the Secretary determines that the 
person, corporation, or entity making such proposal is not qualified, 
is likely to provide unsatisfactory service, or that the proposal is 
not sufficiently responsive to the objectives of protecting and 
preserving park resources and of providing necessary and appropriate 
facilities or services to the public at reasonable rates.
    (3) If all proposals submitted to the Secretary either fail to meet 
the minimum requirements or are rejected by the Secretary, the 
Secretary shall establish new minimum contract requirements and re-
initiate the competitive selection process pursuant to this section.
    (e) Selection of Best Proposal.--(1) In selecting the best 
proposal, the Secretary shall consider the following principal factors:
            (A) The responsiveness of the proposal to the objectives of 
        protecting and preserving park resources and of providing 
        necessary and appropriate facilities and services to the public 
        at reasonable rates.
            (B) The experience, expertise, and related background of 
        the person, corporation, or other entity submitting the 
        proposal, including whether the person, corporation, or entity 
        submitted the proposal has established a record of outstanding 
        performance in providing the same or similar facilities or 
        services.
            (C) The financial capability of the person, corporation, or 
        entity submitting the proposal.
            (D) The proposed franchise fee: Provided, That 
        consideration of revenue to the United States shall be 
        subordinate to the objectives of protecting and preserving park 
        resources including cultural resources, and of providing 
        necessary and appropriate facilities or services to the public 
        at reasonable rates.
    (2) The Secretary may also consider such secondary factors as the 
Secretary deems appropriate.
    (3) In developing regulations to implement this title, the 
Secretary shall consider the extent to which plans for employment of 
Indians (including Native Alaskans) and involvement of businesses owned 
by Indians, Indian tribes, or Native Alaskans in the operation of 
concession contracts should be identified as a factor in the selection 
of a best offer under this section.
    (f) Congressional Notification.--(1) The Secretary shall submit any 
proposed concession contract with anticipated annual gross receipts in 
excess of $1,000,000 (indexed to 1993 constant dollars) or a duration 
in excess of ten years to the Committee on Energy and Natural Resources 
of the United States Senate and the Committee on Resources of the 
United States House of Representatives.
    (2) The Secretary shall not award any such proposed contract until 
at least 60 days subsequent to the submission thereof to both 
Committees.
    (g) No Preferential Right of Renewal.--(1) Except as provided in 
paragraph (2), the Secretary shall not grant a preferential right to a 
concessioner to renew a concession contract executed pursuant to this 
title.
    (2)(A) The Secretary shall grant a preferential right of renewal 
with respect to a concession contract covered by subsection (h) and (i) 
subject to the requirements of subsection (h) or (i), as appropriate.
    (B) As used in this paragraph and subsections (h) and (i), the term 
``preferential right of renewal'' means that the Secretary shall allow 
a concessioner satisfying the requirements of this paragraph the 
opportunity to match the terms and conditions of any competing proposal 
which the Secretary determines to be the best offer.
    (C) A concessioner who exercises a preferential right of renewal in 
accordance with the requirements of this paragraph shall be entitled to 
award of the new concession contract with respect to which such right 
is exercised.
    (h) Outfitting and Guide Contracts.--(1) Except as provided in 
subsection (i), the provisions of subsection (g)(2) shall apply only--
            (A) to a concession contract--
                    (i) which solely authorizes a concessioner to 
                provide outfitting, guide, river running, or other 
                substantially similar services within a park; and
                    (ii) which does not grant such concessioner any 
                interest in any structure, fixture, or improvement 
                pursuant to section 11 of this Act; and
            (B) where the concessioner has been awarded an annual 
        rating of ``Excellent'' in at least 50 percent of the annual 
        ratings during the term of the contract;
            (C) where the concessioner has not received any annual 
        unsatisfactory ratings during the term of the contract; and
            (D) where the Secretary determines that the concessioner 
        has submitted a responsive proposal for a new contract which 
        satisfies the minimum requirements established by the Secretary 
        pursuant to section 6 of this Act.
    (2) In granting a preferential right of renewal pursuant to 
subsection (g)(2), the Secretary shall not require concessioner to 
match any portion of a proposed franchise fee which exceeds by more 
than 10 percent the minimum fee established by the Secretary in the 
prospectus for such contract.
    (3)(A) With respect to a concession contract (or extension thereof) 
covered by this subsection, which is in effect on the date of enactment 
of this Act, the provisions of this paragraph shall apply if the holder 
of such contract, under the laws and policies in effect on the day 
before the date of enactment of this Act, would have been entitled to a 
preferential right of renewal upon the expiration of such contract.
    (B) Upon the expiration of a concession contract (or extension 
thereof) covered by this paragraph, the Secretary, with respect to the 
award of a new concession contract to provide the same or substantially 
similar services as those authorized by the previous contract or 
extension, shall allow the holder of such contract or extension the 
right to exercise a preferential right of renewal to the same extent as 
would have been the case under the laws and policies in effect on the 
day before the date of enactment of this Act.
    (4)(A) In promulgating regulations to implement this subsection, 
the Secretary shall include a rating category of ``Excellent'', and 
shall establish clear and achievable standards necessary for the award 
of such rating, including but not necessarily limited to criteria 
relating to--
            (i) protection of the park's resources and values;
            (ii) furtherance of the educational, recreational, and 
        other purposes for which the Secretary manages the park; and
            (iii) the adequacy of services provided to park visitors.
    (B) The Secretary shall take appropriate steps to enable all 
holders of contracts covered by this subsection, and all parties 
seeking to obtain such contracts, to be aware of the criteria 
established pursuant to this paragraph.
    (i) Contracts With Annual Gross Receipts Under $500,000.--(1) The 
provisions of subsection (g)(2) shall also apply to a concession 
contract--
            (A) which the Secretary estimates will result in annual 
        gross receipts of less than $500,000;
            (B) where the Secretary has determined that the 
        concessioner has operated satisfactorily during the term of the 
        contract (including any extensions thereof); and
            (C) that the concessioner has submitted a responsive 
        proposal for a new concession contract which satisfies the 
        minimum requirements established by the Secretary pursuant to 
        section 6 of this Act.
    (2) The provisions of this subsection shall not apply to a 
concession contract covered by subsection (h).

SEC. 406. FRANCHISE FEES.

    (a) In General.--Franchise fees, however stated, shall not be less 
than the minimum franchise fee established by the Secretary for each 
contract. The minimum franchise fee shall be determined in a manner 
that will provide the concessioner with a reasonable opportunity to 
realize a profit on the operation as a whole, commensurate with the 
capital invested and the obligations assumed.
    (b) Multiple Contracts within a Park.--If multiple concession 
contracts are awarded to authorize concessioners to provide the same 
outfitting, guide, river running, or other similar services at the same 
approximate location within a specific park, the Secretary shall 
establish a standardized schedule of franchise fees for all such 
contracts, subject to periodic review and revision by the Secretary.

SEC. 407. USE OF FRANCHISE FEES.

    (a) Special Account.--Except as provided in subsection (b), all 
receipts including fees for use of Federally-owned buildings or other 
facilities collected pursuant to this title shall be covered into a 
special account established in the Treasury of the United States. 
Amounts covered into such account in a fiscal year shall be available 
for expenditure, subject to appropriation, solely as follows:
            (1) 50 percent shall be allocated among the units of the 
        National Park System in the same proportion as franchise fees 
        collected from a specific unit bears to the total amount 
        covered into the account for each fiscal year, to be used for 
        resource management and protection, maintenance activities, 
        interpretation, and research.
            (2) 50 percent shall be allocated among the units of the 
        National Park System on the basis of need, in a manner to be 
        determined by the Secretary, to be used for resource management 
        and protection, maintenance activities, interpretation, and 
        research.
    (b) Park Improvement Fund.--(1) In lieu of collecting all or a 
portion of the franchise fees that would otherwise be collected 
pursuant to the concession contract, the Secretary shall, where the 
Secretary determines it to be practicable, require a concessioner to 
establish a Park Improvement Fund in which the concessioner shall 
deposit the franchise fees that would otherwise be required by the 
contract.
    (2) The fund shall be maintained by the concessioner in an interest 
bearing account in a federally insured financial institution. The 
concessioner shall maintain the fund separately from any other funds or 
accounts and shall not co-mingle the monies in the fund with any other 
monies. The Secretary may establish such other terms, conditions, or 
requirements as the Secretary determines to be necessary to ensure the 
financial integrity of the fund.
    (3) Monies from the fund, including interest, shall be expended 
solely for activities and projects within the park which are consistent 
with the park's general management plan, concessions plan, and other 
applicable plans, and which the Secretary determines will enhance 
public use, safety, and enjoyment of the park, including but not 
limited to projects which directly or indirectly support concession 
facilities or services required by the concession contract, but no 
expenditure from the fund shall have the effect of creating or 
increasing any compensable interest of any concessioner in any such 
facilities. A concessioner shall not be allowed to make any advances or 
credits to the fund.
    (4) A concessioner shall not be granted any interest in 
improvements made from fund expenditures, including any interest 
granted pursuant to section 310 of this title.
    (5) Nothing in this subsection shall affect the obligation of a 
concessioner to insure, maintain, and repair any structure, fixture, or 
improvement assigned to such concessioner and to insure that such 
structure, fixture, or improvement fully complies with applicable 
safety and health laws and regulations.
    (6) The concessioner shall maintain proper records for all 
expenditures made from the fund. Such records shall include, but not be 
limited to invoices, bank statements, canceled checks, and such other 
information as the Secretary may require.
    (7) The concessioner shall annually submit to the Secretary a 
statement reflecting total activity in the fund for the preceding 
financial year. The statement shall reflect monthly deposits, 
expenditures by project, interest earned, and such other information as 
the Secretary requires.
    (8) A fund established pursuant to this subsection may not be used 
for any capital expenditure exceeding $2,500,000 in any fiscal year 
unless such expenditure from a fund has been authorized in advance by 
Act of Congress. The Secretary shall annually inform the Congress 
concerning the actual and projected use of moneys in each fund 
established pursuant to this subsection.
    (9) Upon the termination of a concession contract, or upon the sale 
or transfer of such contract, any remaining balance in the fund shall 
be transferred by the concessioner to the successor concessioner, to be 
used solely as set forth in this subsection. In the event there is no 
successor concessioner, the fund balance shall be deposited into the 
special account established in subsection (a).

SEC. 408. DURATION OF CONTRACT.

    (a) Maximum Term.--A concession contract entered into pursuant to 
this title shall be awarded for a term not to exceed ten years: 
Provided, however, That the Secretary may award a contract for a term 
not to exceed twenty years if the Secretary determines that a longer 
term is a necessary component of the overall contract in order to 
reduce the costs to the United States of acquiring possessory interests 
or to carry out the policies of this title and other laws applicable to 
the National Park System.
    (b) Temporary Contract.--A temporary concession contract awarded on 
a non-competitive basis pursuant to section 405(b) of this title shall 
be for a term not to exceed two years.

SEC. 409. TRANSFER OF CONTRACT.

    (a) In General.--(1) No concession contract may be transferred, 
assigned, sold, or otherwise conveyed by a concessioner without prior 
written notification to, and approval of the Secretary.
    (2) The Secretary shall not unreasonably withhold approval of a 
transfer, assignment, sale, or conveyance of a concession contract, but 
shall not approve the transfer of a concession contract to any 
individual, corporation or other entity if, among other matters, the 
Secretary determines that--
            (A) such individual, corporation or entity is, or is likely 
        to be, unable to completely satisfy all of the requirements, 
        terms, and conditions of the contract;
            (B) such transfer, assignment, sale or conveyance is not 
        consistent with the objectives of protecting and preserving 
        park resources, and of providing necessary and appropriate 
        facilities or services to the public at reasonable rates;
            (C) such transfer, assignment, sale, or conveyance relates 
        to a concession contract which does not provide to the United 
        States consideration commensurate with the probable value of 
        the privileges granted by the contract; or
            (D) the terms of the transfer, assignment, sale, or 
        conveyance directly or indirectly attribute a significant value 
        to intangible assets or otherwise may so reduce the opportunity 
        for a reasonable profit over the remaining term of the contract 
        that the United States would be required to make substantial 
        additional expenditures in order to avoid interruption of 
        services to park visitors.
    (b) Congressional Notification.--Within thirty days after receiving 
a request to approve a transfer, assignment, sale, or other conveyance 
of a concession contract with anticipated annual gross receipts in 
excess of $1,000,000 (indexed to 1993 constant dollars) or a duration 
in excess of 10 years, the Secretary shall notify the Committee on 
Energy and Natural Resources of the United States Senate and the 
Committee on Resources of the United States House of Representatives of 
such proposal. Approval of such proposal, if granted by the Secretary, 
shall not take effect until sixty days after the date of notification 
of both Committees.

SEC. 410. PROTECTION OF CONCESSIONER INVESTMENT.

    (a) Existing Structures.--(1) A concessioner who, pursuant to a 
concession contract, before the date of enactment of this title 
acquired or constructed, or as of such date was required by such a 
contract to commence acquisition or construction, of any structure, 
fixture, or improvement upon land owned by the United States within a 
park, shall have a possessory interest therein, to the extent provided 
by such contract, the value of such possessory interest to be 
determined for all purposes on the basis of applicable laws and 
contracts in effect on the day before such date of enactment.
    (2) The provisions of this subsection shall not apply to a 
concessioner whose contract in effect on the date of enactment of this 
title does not include recognition of a possessory interest.
    (3)(A)(i) Except as provided in subparagraph (B), with respect to a 
concession contract entered into on or after the date of enactment of 
this title, the provisions of subsection (b) shall apply to any 
existing structure, fixture, or improvement as defined in paragraph 
(1), except that the value of the possessory interest as of the 
termination date of the first contract expiring after the date of 
enactment of this title shall be used as the basis for depreciation, in 
lieu of the actual original cost of such structure, fixture, or 
improvement.
    (ii) Notwithstanding Generally Accepted Accounting Principles, a 
concessioner with a possessory interest as provided in subsection (a) 
may, at the termination date of the first contract expiring after the 
date of enactment of this Act, re-estimate the useful life of the 
applicable structure, fixture, or improvement, consistent with 
subsection (b): Provided, That the estimated useful life of such 
structure, fixture, or improvement shall not thereafter be 
reestablished or revalued.
    (B) If the Secretary determines during the competitive selection 
process that all proposals submitted either fail to meet the minimum 
requirements or are rejected (as provided in section 405), the 
Secretary may, solely with respect to a structure, fixture, or 
improvement covered under this paragraph, suspend the depreciation 
provisions of subsection (b)(1) for the duration of the contract: 
Provided, That the Secretary may suspend such depreciation provisions 
only if the Secretary determines that the establishment of other new 
minimum contract requirements is not likely to result in the submission 
of satisfactory proposals, and that the suspension of the depreciation 
provisions is likely to result in the submission of satisfactory 
proposals.
    (b) New Structures.--(1) On or after the date of enactment of this 
title, a concessioner who constructs or acquires a new, additional, or 
replacement structure, fixture, or improvement upon land owned by the 
United States within a park, pursuant to a concession contract, shall 
have an interest in such structure, fixture, or improvement equivalent 
to the actual original cost of acquiring or constructing such 
structure, fixture, or improvement, less straight line depreciation 
over the estimated useful life of the asset according to Generally 
Accepted Accounting Principles: Provided, That in no event shall the 
estimated useful life of such asset exceed the depreciation period used 
for such asset for Federal income tax purposes.
    (2) In the event that the contract expires or is terminated prior 
to the estimated useful life of an asset described in paragraph (1), 
the concessioner shall be entitled to receive from the United States or 
the successor concessioner payment equal to the value of the 
concessioner's interest in such structure, fixture, or improvement. A 
successor concessioner may not revalue the interest in such structure, 
fixture, or improvement, the method of depreciation, or the estimated 
useful life of the asset.
    (3) Title to any such structure, fixture, or improvement shall be 
vested in the United States.
    (c) Insurance, Maintenance and Repair.--Nothing in this section 
shall affect the obligation of a concessioner to insure, maintain, and 
repair any structure, fixture, or improvement assigned to such 
concessioner and to insure that such structure, fixture, or improvement 
fully complies with applicable safety and health laws and regulations.

SEC. 411. RATES AND CHARGES TO PUBLIC.

    The reasonableness of a concessioner's rates and charges to the 
public shall, unless otherwise provided in the prospectus and contract, 
be judged primarily by comparison with those rates and charges for 
facilities and services of comparable character charged by parties in 
reasonable proximity to the relevant park and operating under similar 
conditions, with due consideration for length of season, seasonal 
variance, average percentage of occupancy, accessibility, availability 
and costs of labor and materials, type of patronage, and other factors 
deemed significant by the Secretary.

SEC. 412. CONCESSIONER PERFORMANCE EVALUATION.

    (a) Regulations.--Within one hundred and eighty days after the date 
of enactment of this title, the Secretary, after an appropriate period 
for public comment, shall publish regulations establishing standards 
and criteria for evaluating the performance of concessioners operating 
within parks.
    (b) Periodic Evaluation.--(1) The Secretary shall periodically 
conduct an evaluation of each concessioner operating under a concession 
contract pursuant to this title to determine whether such concessioner 
has performed satisfactorily. In evaluating a concessioner's 
performance, the Secretary shall seek and consider applicable reports 
and comments from appropriate Federal, State, and local regulatory 
agencies, and shall seek and consider the views of park visitors and 
concession customers. If the Secretary's performance evaluation results 
in an unsatisfactory rating of the concessioner's overall operation, 
the Secretary shall so notify the concessioner in writing, and shall 
provide the concessioner with a list of the minimum requirements 
necessary for the operation to be rated satisfactory.
    (2) The Secretary may terminate a concession contract if the 
concessioner fails to meet the minimum operational requirements 
identified by the Secretary within the time limitations established by 
the Secretary at the time notice of the unsatisfactory rating is 
provided to the concessioner.
    (3) If the Secretary terminates a concession contract pursuant to 
this section, the Secretary shall solicit proposals for a new contract 
consistent with the provisions of this title.
    (c) Congressional Notification.--The Secretary shall notify the 
Committee on Energy and Natural Resources of the United States Senate 
and the Committee on Resources of the United States House of 
Representatives of each unsatisfactory overall annual rating and of 
each concession contract terminated pursuant to this section.

SEC. 413. RECORDKEEPING REQUIREMENTS.

    (a) In General.--Each concessioner shall keep such records as the 
Secretary may prescribe to enable the Secretary to determine that all 
terms of the concessioner's contract have been and are being faithfully 
performed, and the Secretary, the Inspector General of the Department 
of the Interior, or any of the Secretary's duly authorized 
representatives shall, for the purpose of audit and examination, have 
access to such records and to other books, documents and papers of the 
concessioner pertinent to the contract and all the terms and conditions 
thereof as the Secretary and the Inspector General deem necessary.
    (b) General Accounting Office Review.--The Comptroller General of 
the United States or any of his or her duly authorized representatives 
shall, until the expiration of five calendar years after the close of 
the business year for each concessioner, have access to and the right 
to examine any pertinent books, documents, papers, and records of the 
concessioner related to the contracts or contracts involved, including 
those related to any Park Improvement Funds established pursuant to 
section 407(b).

SEC. 414. EXEMPTION FROM CERTAIN LEASE REQUIREMENTS.

    The provisions of section 321 of the Act of June 30, 1932 (47 Stat. 
412; 40 U.S.C. 303b), relating to the leasing of buildings and 
properties of the United States, shall not apply to contracts awarded 
by the Secretary pursuant to this title.

SEC. 415. NO EFFECT ON ANILCA PROVISIONS.

    Nothing in this title shall be construed to amend, supersede, or 
otherwise affect any provision of the Alaska National Interest Lands 
Conservation Act (16 U.S.C. 3101 et seq.).

SEC. 416. IMPLEMENTATION.

    (a) Audit Requirement.--Beginning with fiscal year 1997, the 
Inspector General of the Department of the Interior shall conduct a 
biennial audit of the Secretary's implementation of this title and the 
award and management of concession contracts and authorizations 
described in section 404(b).
    (b) Biennial Reports.--Beginning on June 1, 1997, and biannually 
thereafter the Secretary and the Inspector General of the Department of 
the Interior shall submit a report to the Committee on Energy and 
Natural Resources of the United States Senate and the Committee on 
Resources of the United States House of Representatives on the 
implementation of this title and the effect of such implementation on 
facilities operated and services provided pursuant to concession 
contracts.
    (c) Information From Secretary.--In each report required by this 
section, the Secretary shall--
            (1) identify any concession contracts which have been 
        renewed, renegotiated, terminated, or transferred during the 2 
        years prior to the submission of the report and identify any 
        significant changes in the terms of the new contract;
            (2) state the amount of franchise fees, the rates which 
        would be charged for services, and the level of other services 
        required to be provided by the concessioner in comparison to 
        that required in any previous concession contract for the same 
        facilities or services at the same park;
            (3) assess the degree to which facilities are being 
        maintained, using the condition of such facilities on the date 
        of enactment of this Act as a baseline;
            (4) indicate whether competition has been increased or 
        decreased with respect to the awarding of concession contracts;
            (5) set forth the total amount of revenues received and 
        financial obligations incurred or reduced by the Federal 
        Government as a result of enactment of this Act for the 
        reporting period and in comparison with previous reporting 
        periods and the baseline year of 1993, including the costs, if 
        any, associated with the acquisition of possessory interests; 
        and
            (6) include information concerning any park improvement 
        funds established pursuant to section 407(b) of this title, 
        including--
                    (A) the total amount of funds deposited into and 
                expended from each such fund during the preceding 2-
                year period; and
                    (B) the purposes for which expenditures from such 
                funds during such period were used.
    (d) Information From Inspector General.--In each report required by 
this section, the Inspector General of the Department of the Interior 
shall include information as to the results of the audit required by 
subsection (a), including--
            (1) the status of the Secretary's implementation of this 
        title;
            (2) the extent to which such implementation has furthered 
        the policies of this title, as set forth in section 401, and 
        has led to an increase or decrease in competition for 
        concession contracts;
            (3) the adequacy of recordkeeping and other requirements 
        imposed on establishment and use of park improvement funds 
        established pursuant to section 407(b); and
            (4) any recommendations the Inspector General may find 
        appropriate in order to further the purposes of this title and 
        other laws applicable to the National Park System or to assure 
        that park improvement funds established pursuant to section 
        407(b) are maintained and expenditures therefrom are used in 
        accordance with this title and sound business practices.

SEC. 417. AUTHORIZATION OF APPROPRIATIONS.

    There is authorized to be appropriated such sums as may be 
necessary to carry out this title.
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