HR 380 IH 
SEC. 2. FULL FUNDING FOR PAYMENTS IN LIEU OF TAXES. 
Section 6906 of title 31, United States Code, is amend-
ed—
(1) by striking ‘‘Necessary’’ and inserting ‘‘(a) IN 
GENERAL.—Necessary’’; 
(2) by striking ‘‘Amounts’’ and inserting ‘‘Except 
as provided in subsection (b), amounts’’; and 
(3) by adding at the end the following new sub-
section: 
‘‘(b) FULL FUNDING.—For fiscal years 2004 through 
2008, amounts necessary to carry out this chapter shall 
be made available to the Secretary of the Interior, out of 
any funds in the Treasury not otherwise appropriated and 
without further appropriation, for obligation and expendi-
ture in accordance with this chapter.’’. 
SEC. 3. PROTECTION OF LOCAL TAX BASE AS PART OF FED-
ERAL LAND ACQUISITION. 
(a) ELECTION
OF PAYMENT
TO OFFSET REVENUE 
LOSS.—
(1) NOTIFICATION
OF
LOCAL
GOVERNMENT.—
Whenever a Federal land management agency ac-
quires privately owned land by purchase, exchange, 
or donation, the head of the agency shall notify the 
unit of general local government within whose juris-
diction the land lies.
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(2) ELECTION.—If a unit of general local govern-
ment is notified by a Federal agency under para-
graph (1) regarding an acquisition of land by the 
Federal agency, the elected officials with authority 
under State law to govern the unit may within 90 
days after that notification, elect to receive from the 
Federal land management agency a one-time pay-
ment in an amount sufficient to offset the long term 
revenue loss to the local government that will result 
from the acquisition of the land by the Federal 
agency. 
(b) TREATMENT
OF LAND AFTER ONE-TIME PAY-
MENT.—
(1) IN GENERAL.—If a unit of general local gov-
ernment receives, pursuant to an election under sub-
section (a), a one-time payment with respect to land 
acquired by a Federal land management agency, the 
land shall not be treated as entitlement land for pur-
poses of chapter 69 of title 31, United States Code, 
notwithstanding any changes that may thereafter 
occur in the value of the land, interest rates, tax-
ation rates, or any other economic factor. 
(2) CONFORMING AMENDMENT.—Section 6901(1) 
of title 31, United States Code, is amended by add-
ing at the end the following:
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‘‘Such term does not include any land with respect to 
which a unit of local government receives a one-time pay-
ment under the Property Tax Endowment Act of 2003.’’. 
(c) APPLICATION.—
(1) IN GENERAL.—This section shall apply to 
any land acquisition by a Federal land management 
agency completed after September 30, 1998. 
(2) APPLICATION TO PRIOR ACQUISITION.—For 
purposes of the application of this section to an ac-
quisition of land by a Federal agency before the date 
of the enactment of this Act, the head of the agency 
is deemed to have notified the unit of general local 
government concerned in accordance with paragraph 
(1) on the date of the enactment of this Act. 
(3) NO
EFFECT
ON
TITLE.—This subsection 
shall not affect any right, title, or interest of the 
United States in or to land. 
SEC. 4. ONE-TIME PAYMENT. 
(a) IN GENERAL.—If a unit of general local govern-
ment elects under section 3(a)(2) to receive a one-time 
payment with respect to land acquired by a Federal land 
management agency—
(1) the head of the Federal agency shall deter-
mine and make such payment in accordance with 
this section; and
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(2) such acquisition may not occur before the 
date the payment is made. 
(b) AMOUNT OF PAYMENT.—
(1) IN GENERAL.—The amount of such pay-
ment—
(A) shall be sufficient to yield a revenue 
stream in perpetuity equal to the property taxes 
currently required to be paid with respect to the 
land, determined as an annuity amount based 
on an interest rate equal to the current average 
yield on outstanding obligations of the United 
States with remaining periods of maturity of 10 
years on the date of acquisition of the land by 
the Federal agency; 
(B) shall be determined based on the rate 
of tax and land valuation in effect for the land 
under the property tax laws of the unit of gen-
eral local government that apply in the local tax 
year in which the land is acquired by the Fed-
eral land management agency; and 
(C) shall include amounts to offset prop-
erty taxes that were attributable to—
(i) improvements on the acquired 
lands; or
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(ii) the use of the lands for business 
enterprise. 
(2) FEDERAL ACQUISITIONS FROM TAX-EXEMPT 
ENTITIES.—If a Federal land management agency 
acquires lands by purchase, donation, exchange, or 
other means from a nongovernmental organization 
or other entity that is exempt from local taxation, 
paragraph (1) shall apply as if the land were ac-
quired from the last person that owned the lands 
that was not exempt from such taxation. 
(3) DEDUCTION OF PILT PAYMENTS.—In the 
case of a payment under this section to a unit of 
general local government with respect to land that 
was acquired by a Federal land management agency 
before the date of the enactment of this Act, the 
head of the agency shall deduct, from the amount 
otherwise required to be paid, the amount of any 
payment made to the unit with respect to the land 
after September 30, 1998, under chapter 69 of title 
31, United States Code. 
(c) TIME
FOR PAYMENT.—The payment required 
under subsection (a) in connection with a land acquisition 
shall be made before the Federal land management agency 
takes possession of the land. 
(d) USE OF PAYMENT.—
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(1) IN GENERAL.—Amounts paid to a unit of 
general local government under this section shall be 
deposited into a trust fund established and adminis-
tered by the unit of general local government. 
(2) RESTRICTION OF USE OF PRINCIPAL.—The 
principal of the trust funds may not be expended. 
(3) USE OF INTEREST.—Interest generated by 
the trust funds shall be available to the unit of gen-
eral local governmental for any governmental pur-
pose. 
SEC. 5. RELATIONSHIP OF ONE-TIME PAYMENTS TO PAY-
MENTS IN LIEU OF TAXES. 
A one-time payment received by a unit of general 
local government under this Act shall not be deducted or 
in any way used to offset payments required to be made 
to the unit under chapter 69 of title 31, United States 
Code. 
SEC. 6. DEFINITIONS. 
In this section: 
(1) DONATION.—The term ‘‘donation’’ includes 
any conveyance of land to the Federal Government 
that is required as a condition of receipt of any ben-
efit under Federal law.
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(2) FEDERAL LAND MANAGEMENT AGENCY.—
The term ‘‘Federal land management agency’’ 
means each of the following: 
(A) The Forest Service. 
(B) The Bureau of Land Management. 
(C) The National Park Service. 
(D) The United States Fish and Wildlife 
Service. 
(3) UNIT OF GENERAL LOCAL GOVERNMENT.—
The term ‘‘unit of general local government’’ has the 
meaning given the term in section 6901(2) of title 
31, United States Code.
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