SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Blunt Reservoir and Pierre Canal 
Land Conveyance Act of 1999''.

SEC. 2. FINDINGS.

    Congress finds that--
            (1) under the Act of December 22, 1944 (commonly known as 
        the ``Flood Control Act of 1944'')(58 Stat. 887, chapter 665; 
        33 U.S.C. 701-1 et seq.), Congress approved the Pick-Sloan 
        Missouri River Basin program--
                    (A) to promote the general economic development of 
                the United States;
                    (B) to provide for irrigation above Sioux City, 
                Iowa;
                    (C) to protect urban and rural areas from 
                devastating floods of the Missouri River; and
                    (D) for other purposes;
            (2) the purpose of the Oahe Irrigation Project was to meet 
        the requirements of that Act by providing irrigation above 
        Sioux City, Iowa;
            (3) the principle features of the Oahe Irrigation Project 
        included--
                    (A) a system of main canals, including the Pierre 
                Canal, running east from the Oahe Reservoir; and
                    (B) the establishment of regulating reservoirs, 
                including the Blunt Dam and Reservoir, located 
                approximately 35 miles east of Pierre, South Dakota;
            (4) land to establish the Pierre Canal and Blunt Reservoir 
        was purchased from willing sellers between 1972 and 1977, when 
        construction on the Oahe Irrigation Project was halted;
            (5) since 1978, the Commissioner of Reclamation has 
        administered the land--
                    (A) on a preferential lease basis to original 
                landowners or their descendants; and
                    (B) on a nonpreferential lease basis to other 
                persons;
            (6) the 2 largest reservoirs created by the Pick-Sloan 
        Missouri River Basin Program, Lake Oahe and Lake Sharpe, caused 
        the loss of approximately 221,000 acres of fertile, wooded 
        bottomland in South Dakota that constituted some of the most 
        productive, unique, and irreplaceable wildlife habitat in the 
        State;
            (7) the State of South Dakota has developed a plan to meet 
        the Federal obligation under the Fish and Wildlife Coordination 
        Act (16 U.S.C. 661 et seq.) to mitigate the loss of wildlife 
        habitat, the implementation of which is authorized by section 
        602 of title VI of Public Law 105-277 (112 Stat. 2681-660); and
            (8) it is in the interests of the United States and the 
        State of South Dakota to--
                    (A) provide original landowners or their 
                descendants with an opportunity to purchase back their 
                land; and
                    (B) transfer the remaining land to the State of 
                South Dakota to allow implementation of its habitat 
                mitigation plan.

SEC. 3. BLUNT RESERVOIR AND PIERRE CANAL.

    (a) Definitions.--In this section:
            (1) Blunt reservoir feature.--The term ``Blunt Reservoir 
        feature'' means the Blunt Reservoir feature of the Oahe 
        Irrigation Project authorized by section 9 of the Act of 
        December 22, 1944 (58 Stat. 891, chapter 665), as part of the 
        Pick-Sloan Missouri River Basin Program.
            (2) Commission.--The term ``Commission'' means the 
        Commission of Schools and Public Lands of the State of South 
        Dakota.
            (3) Nonpreferential lease parcel.--The term 
        ``nonpreferential lease parcel'' means a parcel of land that--
                    (A) was purchased by the Secretary for use in 
                connection with the Blunt Reservoir feature or the 
                Pierre Canal feature; and
                    (B) is under lease to a person other than a 
                preferential leaseholder as of the date of enactment of 
                this Act.
            (4) Pierre canal feature.--The term ``Pierre Canal 
        feature'' means the Pierre Canal feature of the Oahe Irrigation 
        Project authorized by section 9 of the Act of December 22, 1944 
        (58 Stat. 891, chapter 665), as part of the Pick-Sloan Missouri 
        River Basin Program.
            (5) Preferential leaseholder.--The term ``preferential 
        leaseholder'' means a leaseholder of a parcel of land who is--
                    (A) the person from whom the Secretary purchased 
                the parcel for use in connection with the Blunt 
                Reservoir feature or the Pierre Canal feature;
                    (B) the original operator of the parcel at the time 
                of acquisition; or
                    (C) a descendant of a person described in 
                subparagraph (A) or (B).
            (6) Preferential lease parcel.--The term ``preferential 
        lease parcel'' means a parcel of land that--
                    (A) was purchased by the Secretary for use in 
                connection with the Blunt Reservoir feature or the 
                Pierre Canal feature; and
                    (B) is under lease to a preferential leaseholder as 
                of the date of enactment of this Act.
            (7) Secretary.--The term ``Secretary'' means the Secretary 
        of the Interior, acting through the Commissioner of 
        Reclamation.
            (8) Unleased parcel.--The term ``unleased parcel'' means a 
        parcel of land that--
                    (A) was purchased by the Secretary for use in 
                connection with the Blunt Reservoir feature or the 
                Pierre Canal feature; and
                    (B) is not under lease as of the date of enactment 
                of this Act.
    (b) Deauthorization.--The Blunt Reservoir feature is deauthorized.
    (c) Conveyance.--The Secretary shall convey all of the preferential 
lease parcels to the Commission, without consideration, on the 
condition that the Commission honor the purchase option provided to 
preferential leaseholders under subsection (d).
    (d) Purchase Option.--
            (1) In general.--A preferential leaseholder shall have an 
        option to purchase from the Commission the preferential lease 
        parcel that is the subject of the lease.
            (2) Terms.--
                    (A) In general.--Except as provided in subparagraph 
                (B), a preferential leaseholder may elect to purchase a 
                parcel on 1 of the following terms:
                            (i) Cash purchase for the amount that is 
                        equal to--
                                    (I) the value of the parcel 
                                determined under paragraph (4); minus
                                    (II) 10 percent of that value.
                            (ii) Installment purchase, with 20 percent 
                        of the value of the parcel determined under 
                        paragraph (4) to be paid on the date of 
                        purchase and the remainder to be paid over not 
                        more than 30 years at 3 percent annual 
                        interest.
                    (B) Value under $10,000.--If the value of the 
                parcel is under $10,000, the purchase shall be made on 
                a cash basis in accordance with subparagraph (A)(i).
            (3) Option exercise period.--
                    (A) In general.--A preferential leaseholder shall 
                have until the date that is 10 years after the date of 
                the conveyance under subsection (c) to exercise the 
                option under paragraph (1).
                    (B) Continuation of leases.--Until the date 
                specified in subparagraph (A), a preferential 
                leaseholder shall be entitled to continue to lease from 
                the Commission the parcel leased by the preferential 
                leaseholder under the same terms and conditions as 
                under the lease, as in effect as of the date of 
                conveyance.
            (4) Valuation.--
                    (A) In general.--The value of a preferential lease 
                parcel shall be determined to be, at the election of 
                the preferential leaseholder--
                            (i) the amount that is equal to--
                                    (I) the number of acres of the 
                                preferential lease parcel; multiplied 
                                by
                                    (II) the amount of the per-acre 
                                assessment of adjacent parcels made by 
                                the Director of Equalization of the 
                                county in which the preferential lease 
                                parcel is situated; or
                            (ii) the amount of a valuation of the 
                        preferential lease parcel for agricultural use 
                        made by an independent appraiser.
                    (B) Cost of appraisal.--If a preferential 
                leaseholder elects to use the method of valuation 
                described in subparagraph (A)(ii), the cost of the 
                valuation shall be paid by the preferential 
                leaseholder.
            (5) Conveyance to the state of south dakota.--
                    (A) In general.--If a preferential leaseholder 
                fails to purchase a parcel within the period specified 
                in paragraph (3)(A), the Commission shall convey the 
                parcel to the State of South Dakota Department of Game, 
                Fish, and Parks.
                    (B) Wildlife habitat mitigation.--Land conveyed 
                under subparagraph (A) shall be used by the South 
                Dakota Department of Game, Fish, and Parks for the 
                purpose of mitigating the wildlife habitat that was 
                lost as a result of the development of the Pick-Sloan 
                project.
            (6) Use of proceeds.--Of the proceeds of sales of land 
        under this subsection--
                    (A) not more than $500,000 shall be used to 
                reimburse the Secretary for expenses incurred in 
                implementing this Act;
                    (B) an amount not exceeding 10 percent of the cost 
                of each transaction conducted under this Act shall be 
                used to reimburse the Commission for expenses incurred 
                implementing this Act;
                    (C) $3,095,000 shall be deposited in the South 
                Dakota Wildlife Habitat Mitigation Trust Fund 
                established by section 603 of division C of Public Law 
                105-277 (112 Stat. 2681-663) for the purpose of paying 
                property taxes on land transferred to the State of 
                South Dakota;
                    (D) $100,000 shall be provided to Hughes County, 
                South Dakota, for the purpose of supporting public 
                education;
                    (E) $100,000 shall be provided to Sully County, 
                South Dakota, for the purpose of supporting public 
                education; and
                    (F) the remainder shall be used by the Commission 
                to support public schools in the State of South Dakota.
    (e) Conveyance of Nonpreferential Lease Parcels and Unleased 
Parcels.--
            (1) In general.--The Secretary shall convey to the South 
        Dakota Department of Game, Fish, and Parks the nonpreferential 
        lease parcels and unleased parcels of the Blunt Reservoir and 
        Pierre Canal.
            (2) Wildlife habitat mitigation.--Land conveyed under 
        paragraph (1) shall be used by the South Dakota Department of 
        Game, Fish, and Parks for the purpose of mitigating the 
        wildlife habitat that was lost as a result of the development 
        of the Pick-Sloan project.
    (f) Land Exchanges for Nonpreferential Lease Parcels and Unleased 
Parcels.--
            (1) In general.--With the concurrence of the South Dakota 
        Department of Game, Fish, and Parks, the South Dakota 
        Commission of Schools and Public Lands may allow a person to 
        exchange land that the person owns elsewhere in the State of 
        South Dakota for a nonpreferential lease parcel or unleased 
        parcel at Blunt Reservoir or Pierre Canal, as the case may be.
            (2) Priority.--The right to exchange nonpreferential lease 
        parcels or unleased parcels shall be granted in the following 
        order of priority:
                    (A) Exchanges with current lessees for 
                nonpreferential lease parcels.
                    (B) Exchanges with adjoining and adjacent 
                landowners for unleased parcels and nonpreferential 
                lease parcels not exchanged by current lessees.
    (g) Easement for Irrigation Pipe.--A preferential leaseholder that 
purchases land at Pierre Canal or exchanges land for land at Pierre 
Canal shall to allow the State of South Dakota to retain an easement on 
the land for an irrigation pipe.
    (h) Funding of the South Dakota Terrestrial Wildlife Habitat 
Restoration Trust Fund.--Section 603(b) of title VI of Public Law 105-
277 (112 Stat. 2681-663) is amended by striking ``$108,000,000'' and 
inserting ``$111,095,000''.
Output: Blunt Reservoir and Pierre Canal Land Conveyance Act of 1999 - Deauthorizes the Blunt Reservoir feature of the Oahe Irrigation Project authorized as part of the Pick-Sloan Missouri River Basin Program. 
Directs the Secretary of the Interior, acting through the Commissioner of Reclamation, to convey all of the preferential lease parcels to the Commission of Schools and Public Lands of South Dakota, on the condition that the Commission honor the purchase option provided to preferential leaseholders under this Act. 
Requires a preferential leaseholder to have an option to purchase from the Commission the preferential lease parcel that is the subject of the lease.  Permits a preferential leaseholder to elect to purchase a parcel on one of the following terms: (1) cash purchase for the amount that is equal to the value of the parcel minus ten percent of that value; or (2) installment purchase, with 20 percent of the value of the parcel to be paid on the purchase date and the remainder to be paid over no more than 30 years at three percent annual interest.  Provides that if the value of the parcel is under $10,000, the purchase shall be made on a cash basis.  Provides for such leaseholders to have until ten years after the date of the conveyance to exercise such option.  Requires the Commission, if a preferential leaseholder fails to purchase a parcel within such period, to convey the parcel to the State of South Dakota Department of Game, Fish, and Parks to be used for mitigating the wildlife habitat that was lost as a result of the development of the Pick-Sloan project. 
Sets forth the uses of proceeds from such land sales. 
Directs the Secretary, through the Commissioner, to convey to the Department the nonpreferential leased parcels and unleased parcels of the Blunt Reservoir and Pierre Canal to be used for the purpose of mitigating the wildlife habitat that was lost as a result of the development of the Pick-Sloan project. 
Authorizes the Commission, with the Department's concurrence, to allow a person to exchange land that the person owns elsewhere in South Dakota for a nonpreferential lease parcel or unleased parcel at Blunt Reservoir or Pierre Canal. 
Requires a preferential leaseholder that purchases land at Pierre Canal or exchanges land for land at the Canal to allow the State of South Dakota to retain an easement on the land for an irrigation pipe.