SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Small Lands Tracts Conveyance Act''.

SEC. 2. SPECIAL CONVEYANCE AUTHORITY REGARDING SMALL PARCELS OF 
              NATIONAL FOREST SYSTEM LAND AND PUBLIC LANDS.

    (a) Definitions.--In this section:
            (1) Adjacent landholder.--The term ``adjacent landholder'' 
        means any holder of non-Federal land (including a holder that 
        is a State, county, or local government or any agency thereof, 
        or an Indian tribe) that shares one or more boundaries with an 
        eligible Federal lands parcel and who makes a request to 
        purchase an eligible Federal lands parcel.
            (2) Director concerned.--The term ``Director concerned'' 
        means the Director of the Bureau of Land Management for a 
        State.
            (3) Eligible federal lands parcel.--The term ``eligible 
        Federal lands parcel'' means a parcel of National Forest System 
        land or the public lands that--
                    (A) shares one or more boundaries with non-Federal 
                land;
                    (B) is located within the boundaries of an 
                incorporated or unincorporated area with a population 
                of at least 500 residents;
                    (C) is not subject to existing rights held by a 
                non-Federal entity;
                    (D) does not contain an exceptional resource; and
                    (E) is not habitat for an endangered species or a 
                threatened species determined under section 4 of the 
                Endangered Species Act of 1973 (16 U.S.C. 1533).
            (4) Exceptional resource.--The term ``exceptional 
        resource'' means a resource of scientific, historic, cultural, 
        or recreational value on a parcel of public lands that the 
        Director concerned or Regional Forester concerned determines, 
        on the record and after an opportunity for a hearing--
                    (A) is documented by a Federal, State, or local 
                governmental authority; and
                    (B) requires extraordinary conservation and 
                protection to maintain the resource for the benefit of 
                the public.
            (5) Indian tribe.--The term ``Indian tribe'' has the 
        meaning given that term in section 102 of the Federally 
        Recognized Indian Tribe List Act of 1994 (25 U.S.C. 479a).
            (6) National forest system land.--
                    (A) In general.--The term ``National Forest System 
                land'' means land within the National Forest System, as 
                defined in section 11(a) of the Forest and Rangeland 
                Renewable Resources Planning Act of 1974 (16 U.S.C. 
                1609(a)), including the National Grasslands and land 
                utilization projects designated as National Grasslands 
                administered pursuant to the Act of July 22, 1937 (7 
                U.S.C. 1010-1012).
                    (B) Exclusions.--The term does not include any land 
                managed by the Forest Service that is included in a 
                national monument, an area of critical environmental 
                concern, a national conservation area, a national 
                riparian conservation area, a national recreation area, 
                a national scenic area, a research natural area, a 
                national outstanding natural area, a national natural 
                landmark, a wilderness area, a wilderness study area, 
                the national wild and scenic rivers system, the 
                national system of trails, or land held in trust by the 
                United States for the benefit of any Indian tribe.
            (7) Public lands.--
                    (A) In general.--The term ``public lands'' has the 
                meaning given that term in section 103(e) of the 
                Federal Land Policy and Management Act of 1976 (43 
                U.S.C. 1702(e)).
                    (B) Exclusions.--The term does not include any land 
                managed by the Bureau of Land Management that is 
                included in a national monument, an area of critical 
                environmental concern, a national conservation area, a 
                national riparian conservation area, a national 
                recreation area, a national scenic area, a research 
                natural area, a national outstanding natural area, a 
                national natural landmark, a wilderness area, a 
                wilderness study area, the national wild and scenic 
                rivers system, the national system of trails, or land 
                held in trust by the United States for the benefit of 
                any Indian tribe.
            (8) Regional forester concerned.--The term ``Regional 
        Forester concerned'' means the Regional Forester with 
        jurisdiction over the National Forest System land of a specific 
        Forest Service Region.
    (b) Selection of Parcels for Conveyance.--
            (1) Two selection methods.--The Director concerned or the 
        Regional Forester concerned shall select an eligible Federal 
        lands parcel for conveyance under this section--
                    (A) in response to a request submitted by an 
                adjacent landholder; or
                    (B) upon the recommendation of the District Office 
                of the Bureau of Land Management or unit of the 
                National Forest System exercising administration over 
                the parcel.
            (2) Adjacent landholder request.--
                    (A) Process required.--The Secretary of Agriculture 
                and the Secretary of the Interior each shall create a 
                process by which an adjacent landholder may request to 
                purchase an eligible Federal lands parcel.
                    (B) Guidelines.--To the maximum extent practicable, 
                the process shall be consistent with other public 
                purchase request processes used by the Forest Service 
                and the Bureau of Land Management to convey Federal 
                land under their respective statutory and regulatory 
                authority.
                    (C) Public accessibility.--The process shall be 
                open to the public and available on the internet.
                    (D) Deadline.--The process shall be available to 
                the public within 90 days of the date of the enactment 
                of this Act.
            (3) Review of adjacent landholder request.--When an 
        adjacent landholder submits a request under paragraph (1)(A) 
        for conveyance of a parcel of National Forest System land or 
        public lands, the Director concerned or the Regional Forester 
        concerned shall review the parcel and determine, within 30 days 
        after receipt of the request, whether the parcel satisfies the 
        definition of eligible Federal lands parcel for conveyance.
            (4) Rejection of adjacent landholder request.--If the 
        Director concerned or the Regional Forester concerned 
        determines under paragraph (2) that all or a portion of the 
        parcel of National Forest System land or public lands covered 
        by an adjacent landholder request under paragraph (1)(A) fails 
        to satisfy the definition of eligible Federal lands parcel, the 
        Director concerned or the Regional Forester concerned shall 
        give the landowner--
                    (A) a written explanation of the reasons for the 
                rejection, which specifies--
                            (i) which of the elements of the definition 
                        of eligible Federal lands parcel the parcel 
                        fails to satisfy and how and why the parcel 
                        fails to satisfy that element;
                            (ii) how the continued administration of 
                        the parcel by the Bureau of Land Management or 
                        the Forest Service would impact the parcel and 
                        surrounding economy; and
                            (iii) why the Federal Government needs to 
                        maintain ownership of the parcel and would be 
                        the best land ownership steward of the parcel; 
                        and
                    (B) an opportunity to appeal the rejection under 
                subsection (e).
    (c) Parcel and Acreage Limitations.--
            (1) Acreage.--An eligible Federal lands parcel conveyed 
        under this section may not exceed 160 acres unless a request 
        for additional acreage is approved by the Director concerned or 
        the Regional Forester concerned.
            (2) Number of parcels.--An adjacent landholder may only 
        acquire one eligible Federal lands parcel under this section 
        per year, except that, if the parcel is less than 160 acres in 
        size, the adjacent landholder may acquire additional eligible 
        Federal lands parcels during that year so long as the total 
        acreage acquired does not exceed 160 acres unless a request for 
        additional acreage is approved by the Director concerned or the 
        Regional Forester concerned.
    (d) Conveyance Process.--
            (1) Public notice.--The Director concerned or the Regional 
        Forester concerned shall provide public notice of the 
        availability of an eligible Federal lands parcel, even in cases 
        in which the parcel shares a boundary with only a single parcel 
        of non-Federal land or with multiple parcels owned by the same 
        adjacent landholder. The notice shall state that the parcel 
        satisfies the definition of eligible Federal lands parcel for 
        conveyance.
            (2) Single adjacent landholder.--If the eligible Federal 
        lands parcel shares a boundary with only a single parcel of 
        non-Federal land or with multiple parcels owned by the same 
        adjacent landholder, the Director concerned or the Regional 
        Forester concerned shall carry out a negotiated sale of the 
        eligible Federal lands parcel with the adjacent landholder.
            (3) Multiple adjacent landholders.--If multiple parcels of 
        non-Federal land, owned by different adjacent landholders, 
        share a boundary with an eligible public lands parcel, the sale 
        of the eligible public lands parcel under this section shall be 
        conducted using competitive bidding procedures established 
        under section 203(f) of the Federal Land Policy and Management 
        Act of 1976 (43 U.S.C. 1713(f)).
            (4) Rejection of offers.--The Director concerned or the 
        Regional Forester concerned may reject any offer made under 
        this subsection that does not offer the minimum consideration 
        required by subsection (f). The adjacent landholder shall be 
        given an opportunity to appeal the rejection under subsection 
        (e).
            (5) Compliance with local planning and zoning.--As a 
        condition of the conveyance of an eligible public lands parcel 
        under this section, the Director concerned or the Regional 
        Forester concerned shall require the purchaser of the parcel to 
        agree to comply with all local land use ordinances and any 
        master zoning plan applicable to the parcel or the adjacent 
        non-Federal land of the purchaser.
            (6) Form of conveyance.--When an eligible Federal lands 
        parcel is to be sold under this section, the Director concerned 
        or the Regional Forester concerned shall convey, by quitclaim 
        deed, all right, title, and interest, including the mineral 
        estate, of the United States in and to the parcel.
    (e) Appeals Process.--
            (1) Availability of appeal.--If the Director concerned or 
        the Regional Forester concerned rejects an adjacent landholder 
        request under subsection (b)(1)(A) for selection of a parcel of 
        National Forest System land or public lands for conveyance 
        under this section or rejects an adjacent landholder offer for 
        purchase of an eligible Federal lands parcel under subsection 
        (d), the Director concerned or the Regional Forester concerned 
        shall provide an appeals process for reconsideration of the 
        rejection using the expedited Forest Service appeals process 
        available under section 322(d) of Public Law 102-381 (16 U.S.C. 
        1612 note).
            (2) Administering official.--For purposes of applying 
        section 322(d) of Public Law 102-381 (16 U.S.C. 1612 note), 
        references to the Chief of the Forest Service or the Secretary 
        of Agriculture shall be deemed to mean the Director concerned 
        or the Regional Forester concerned.
    (f) Consideration.--
            (1) Fair market value.--As consideration for the sale of an 
        eligible Federal lands parcel under this section, the Director 
        concerned or the Regional Forester concerned shall require a 
        cash payment in an amount that is equal to not less than the 
        fair market value of the parcel, including the mineral estate, 
        being conveyed by the Director concerned or the Regional 
        Forester concerned.
            (2) Establishment.--The fair market value of an eligible 
        Federal lands parcel shall be established by an appraisal 
        submitted by the adjacent landholder seeking to purchase the 
        parcel, unless the Director concerned or the Regional Forester 
        concerned rejects such appraisal within 45 days after 
        submission. In the case of the rejection of the appraisal, the 
        Director concerned or the Regional Forester concerned shall 
        cause another appraisal to be conducted, within 30 days, in 
        accordance with the regulations regarding appraisals issued 
        under section 206(f) of the Federal Land Policy and Management 
        Act of 1976 (43 U.S.C. 1716(f)).
    (g) Treatment of Proceeds.--
            (1) Establishment of fund.--The Secretary of the Treasury 
        shall establish in the Treasury of the United States a special 
        fund to provide for the collection and distribution of funds 
        under this subsection.
            (2) Collection.--Funds collected from the conveyance of an 
        eligible Federal lands parcel under this section shall be 
        deposited into the Treasury fund created under paragraph (1).
            (3) Distribution.--Funds collected under this subsection 
        shall be distributed annually to those States in which the 
        Federal Government owns more than 33 percent of the land area 
        of that State according to the calculation provided in 
        paragraph (4).
            (4) Calculation of distribution.--From amounts collected 
        and deposited under this section--
                    (A) 50 percent of the amount collected from a 
                conveyance shall be distributed to the State in which 
                the conveyance took place; and
                    (B) the remaining 50 percent shall be distributed 
                equally between the remaining States identified under 
                paragraph (3).
            (5) Limitation of use.--As a condition of receipt of funds 
        under this subsection, a State receiving such funds shall agree 
        to use the funds only for the following purposes:
                    (A) Purchase.--To purchase additional eligible 
                Federal lands parcels, that are consistent with land 
                use management under the Federal Land Policy and 
                Management Act of 1976 (43 U.S.C. 1701).
                    (B) Compliance.--To comply with a Federal 
                requirement under--
                            (i) Endangered Species Act of 1973 (16 
                        U.S.C. 1531 et seq.);
                            (ii) Federal Water Pollution Control Act 
                        (33 U.S.C. 1251 et seq.); or
                            (iii) National Environmental Policy Act of 
                        1969 (42 U.S.C. 4321 et seq.).
    (h) Payment of Costs of Conveyance.--
            (1) Payment of costs required.--The Director concerned or 
        the Regional Forester concerned shall require the purchaser to 
        cover the costs to be incurred, or to reimburse the Director 
        concerned or the Regional Forester concerned for costs 
        incurred, to carry out the conveyance, including survey and 
        appraisal costs, costs for environmental documentation, and any 
        other administrative costs related to the conveyance.
            (2) Refund of excess.--If amounts are collected from the 
        purchaser in advance of the Director concerned or the Regional 
        Forester concerned incurring the actual costs, and the amount 
        collected exceeds the costs actually incurred by the Director 
        concerned or the Regional Forester concerned to carry out the 
        conveyance, the Director concerned or the Regional Forester 
        concerned shall refund the excess amount to the purchaser.
            (3) Treatment of amounts received.--Amounts received as 
        reimbursement under paragraph (1) shall be credited to the fund 
        or account that was used to cover those costs in carrying out 
        the conveyance. Amounts so credited shall be merged with 
        amounts in such fund or account, and shall be available for the 
        same purposes, and subject to the same conditions and 
        limitations, as amounts in such fund or account.
    (i) Time for Conveyance.--It is the intent of the Congress that the 
conveyance of an eligible Federal lands parcel under this section, from 
selection of the parcel for conveyance through completion of the sale, 
should take no more than 18 months.
    (j) Categorical Exclusion.--Because the scope of a conveyance is 
limited and excluded from any exceptional resource, a conveyance of an 
eligible Federal lands parcel under this section is categorically 
excluded from the requirement to prepare an environmental assessment or 
an environmental impact statement under the National Environmental 
Policy Act of 1969 (42 U.S.C. 4321 et seq.).
    (k) Additional Authority.--The conveyance authority provided by 
this section is in addition to the sale authority provided by section 
203 of the Federal Land Policy and Management Act of 1976 (43 U.S.C. 
1713) or any other provision of law.
Output: Small Lands Tracts Conveyance Act  Requires the Bureau of Land Management (BLM) for a state (respecting certain public lands) or the Forest Service (respecting certain National Forest System lands) to select an eligible federal lands parcel for conveyance: (1) in response to a request by an adjacent landholder (any holder of non-federal land that shares one or more boundaries with such a parcel and who requests to purchase such a parcel), or (2) upon the recommendation of the BLM District Office or System unit that exercises administration over such parcel.  Directs the Department of Agriculture (USDA) and the Department of the Interior to each create a process by which an adjacent landholder may request to purchase an eligible parcel. Instructs that such process be open to the public and available on the Internet. Bars a conveyed eligible parcel from exceeding 160 acres unless the BLM or the Forest Service approves a request for additional acreage. Permits acquisition by an adjacent landholder of only one eligible parcel a year, subject to an exception.  Instructs the BLM or the Forest Service, as consideration for the sale of an eligible parcel, to require a cash payment in an amount equal to at least the fair market value of such parcel, including the mineral estate, being conveyed.  Requires the proceeds collected from such conveyances to be deposited into a special fund established by this Act and distributed annually to each state in which the federal government owns more than 33% of the land area of such state. Requires, from amounts collected and deposited: (1) 50% of the amount collected from a conveyance to be distributed to the state in which the conveyance took place, and (2) the remaining 50% to be distributed equally between the remaining states identified pursuant to the preceding paragraph. Requires states receiving such funds to use them only for: (1) purchasing additional eligible parcels consistent with land use management under the Federal Land Policy and Management Act; and (2) complying with requirements under the Endangered Species Act of 1973, the Federal Water Pollution Control Act (commonly known as the Clean Water Act), and the National Environmental Policy Act of 1969 (NEPA).  Requires the purchaser of an eligible federal lands parcel under this Act to cover the costs to be incurred, or to reimburse the BLM or the Forest Service for the costs incurred, in carrying out the conveyance.  Excludes categorically a conveyance of an eligible federal lands parcel under this Act from the requirement to prepare an environmental assessment or an environmental impact statement under NEPA.  (A categorical exclusion under NEPA is a category of actions which do not individually or cumulatively have a significant effect on the human environment and which have been found to have no such effect in procedures adopted by a federal agency in implementing environmental regulations and for which, therefore, neither an Environmental Assessment nor an Environmental Impact Statement is required.)