SECTION 1. AMENDMENT OF ACT ESTABLISHING SLEEPING BEAR DUNES NATIONAL 
              LAKESHORE.

    (a) Extensions.--Section 10 of the Act of October 21, 1970, 
establishing the Sleeping Bear Dunes National Lakeshore (84 Stat. 1079; 
16 U.S.C. 460x-9) is amended by adding the following at the end 
thereof:
    ``(e) Extensions of Use and Occupancy.--
            ``(1) Notice.--The Secretary shall transmit a notice to all 
        owners of improved property described in section 11(a) (16 
        U.S.C. 460x-10(a)) who have retained a right of use and 
        occupancy, or their successors in interest who currently 
        possess such rights. The notice shall notify such owners, 
        occupiers, or successors in interest of their right to extend 
        such right of use and occupancy pursuant to this subsection.
            ``(2) Election.--Any owner notified under paragraph (1) may 
        elect, within 180 days of receiving notice pursuant to 
        paragraph (1), to extend his or her right of use and occupancy 
        beyond the otherwise applicable termination date. Such 
        extension shall terminate on the later of the following:
                    ``(A) The date of death of the person who owned or 
                occupied the property on January 1, 1996.
                    ``(B) The date 25 years after the date of the 
                election under this paragraph.
        If the person who owned or occupied the property on January 1, 
        1996, dies before the date 25 years after the date of the 
        election under this paragraph, the right of use and occupancy 
        of the property may be transferred by such person, by will or 
        otherwise, only to a member or members of such person's 
        immediate family for the remainder of the term of the extension 
        under this subsection.
            ``(3) Conditions.--Any extension under this subsection 
        shall be subject to subsections (c) and (d) in the same manner 
        and to the same extent as is a retained right under subsection 
        (b), except that termination of the extension by the Secretary 
        shall take effect only after 180 days after the Secretary has 
        notified the person holding the extension of the Secretary's 
        intention to terminate the extension. Any extension under this 
        subsection shall be conditioned upon the annual payment by 
        person to whom such extension is issued of an amount determined 
        in accordance with paragraph (4). Any such extension shall also 
        be conditioned upon the following:
                    ``(A) An agreement by the person to whom such 
                extension is issued to assume all responsibilities for 
                maintenance, repair, and replacement of all 
                improvements located on the property concerned and to 
                indemnify and hold harmless the United States for any 
                liability which may arise in connection with such 
                property.
                    ``(B) An agreement by the person to whom such 
                extension is issued to make pro rata payments to local 
                governments providing services to persons residing 
                within the boundaries of the lakeshore in such 
                reasonable amounts and at such times as may be 
                determined by such local governments in order to 
                reimburse such local governments for the costs of 
                providing such services.
            ``(4) Amount.--The amount of each payment to be made by a 
        person under paragraph (3) shall be such person's annual pro 
        rata share of an amount determined according to a formula where 
        the numerator is the value of the property used or occupied by 
        such person and the denominator is 100. The value of the 
        property for purposes of this paragraph shall be the value of 
        the property at the time of its acquisition by the United 
        States, indexed for inflation according to the Consumer Price 
        Index, as determined by the Secretary. Notwithstanding sections 
        1341 and 3302 of title 31 of the United States Code, such 
        annual payments shall be retained by the Secretary and shall be 
        available for use by the Secretary without further 
        appropriation for purposes of maintenance and administration of 
        the national lakeshore.
    ``(f) Authority to Lease to Family.--Following an extension under 
subsection (e) of a right of use and occupancy for any property, the 
Secretary may lease the property to any member or members of the 
immediate family of such owner for a definite or indefinite term, at 
the discretion of the Secretary. The Secretary may, after 180 days 
notice to the lessee, terminate any such lease when the Secretary 
determines that the structures on the property will be removed and the 
property will be restored to its natural condition in order to improve 
the natural landscape and provide better opportunities for public 
access and enjoyment. Any such lease shall be subject to the same 
conditions as referred to in paragraph (3) of subsection (e) and lease 
payments shall be retained by the Secretary in the same manner as 
provided in paragraph (4) of subsection (e).''.
    (b) Technical and Conforming Amendments.--Section 10(c) of such Act 
is amended by striking ``many'' and inserting ``may''. Section 11(a)(2) 
of such Act is amended by striking ``section 10 (b) or (d)'' and 
inserting ``section 10''.
Output: Directs the Secretary of the Interior to notify owners of certain improved property constructed between December 31, 1964, and October 21, 1970, within the Sleeping Bear Dunes National Lakeshore in Michigan of their right to extend their (or their successor's) right of use and occupancy until the later of their death or 25 years. 
Requires 180 days' prior notice for termination of such extension by the Secretary.  Conditions an extension upon:  (1) the annual payment by its recipient of a specified amount based on the value of the property (requires such payments to be retained by the Secretary and made available for maintenance and administration of the Lakeshore); and (2) agreements by the recipient to assume all responsibilities for repairs and maintenance, to indemnify and hold harmless the United States for any liability in connection with such property, and to make pro rata payments to local governments for services provided. 
Authorizes the Secretary: (1) following an extension under this Act, to lease the property to any family member of such owner; and (2) after 180 days' notice, to terminate any such lease when the Secretary determines that the structures on the property will be removed and the property will be restored to its natural condition in order to improve the natural landscape and provide better opportunities for public access and enjoyment.  Subjects such leases to the same conditions and lease payments provided under this Act.