SECTION 1. INCLUSION OF ADDITIONAL PORTION OF THE LITTLE SANDY RIVER 
              WATERSHED IN THE BULL RUN WATERSHED MANAGEMENT UNIT, 
              OREGON.

    (a) In General.--Public Law 95-200 (16 U.S.C. 482b note) is amended 
by striking section 1 and inserting the following:

``SECTION 1. ESTABLISHMENT OF SPECIAL RESOURCES MANAGEMENT UNIT; 
              DEFINITION OF SECRETARY.

    ``(a) Establishment.--
            ``(1) In general.--There is established, subject to valid 
        existing rights, a special resources management unit in the 
        State of Oregon comprising approximately 98,272 acres, as 
        depicted on a map dated September, 1998, and entitled `Bull Run 
        Watershed Management Unit'.
            ``(2) Map.--The map described in paragraph (1) shall be on 
        file and available for public inspection in the offices of the 
        Regional Forester-Pacific Northwest Region, Forest Service, 
        Department of Agriculture, and in the offices of the State 
        Director, Bureau of Land Management, Department of the 
        Interior.
            ``(3) Boundary adjustments.--Minor adjustments in the 
        boundaries of the unit may be made from time to time by the 
        Secretary after consultation with the city and appropriate 
        public notice and hearings.
    ``(b) Definition of Secretary.--In this Act, the term `Secretary' 
means--
            ``(1) with respect to land administered by the Secretary of 
        Agriculture, the Secretary of Agriculture; and
            ``(2) with respect to land administered by the Secretary of 
        the Interior, the Secretary of the Interior.''.
    (b) Conforming and Technical Amendments.--
            (1) Secretary.--Public Law 95-200 (16 U.S.C. 482b note) is 
        amended by striking ``Secretary of Agriculture'' each place it 
        appears (except subsection (b) of section 1, as added by 
        subsection (a), and except in the amendments made by paragraph 
        (2)) and inserting ``Secretary''.
            (2) Applicable law.--
                    (A) In general.--Section 2(a) of Public Law 95-200 
                (16 U.S.C. 482b note) is amended by striking 
                ``applicable to National Forest System lands'' and 
                inserting ``applicable to National Forest System land 
                (in the case of land administered by the Secretary of 
                Agriculture) or applicable to land under the 
                administrative jurisdiction of the Bureau of Land 
                Management (in the case of land administered by the 
                Secretary of the Interior)''.
                    (B) Management plans.--The first sentence of 
                section 2(c) of Public Law 95-200 (16 U.S.C. 482b note) 
                is amended--
                            (i) by striking ``subsection (a) or (b)'' 
                        and inserting ``subsections (a) and (b)''; and
                            (ii) by striking ``, through the 
                        maintenance'' and inserting ``(in the case of 
                        land administered by the Secretary of 
                        Agriculture) or section 202 of the Federal Land 
                        Policy and Management Act of 1976 (43 U.S.C. 
                        1712) (in the case of land administered by the 
                        Secretary of the Interior), through the 
                        maintenance''.

SEC. 2. MANAGEMENT.

    (a) Timber Harvesting Restrictions.--Section 2(b) of Public Law 95-
200 (16 U.S.C. 482b note) is amended by striking paragraph (1) and 
inserting the following:
            ``(1) In general.--Subject to paragraph (2), the Secretary 
        shall prohibit the cutting of trees on Federal land in the 
        entire unit, as designated in section 1 and depicted on the map 
        referred to in that section.''.
    (b) Repeal of Management Exception.--The Oregon Resource 
Conservation Act of 1996 (division B of Public Law 104-208) is amended 
by striking section 606 (110 Stat. 3009-543).
    (c) Repeal of Duplicative Enactment.--Section 1026 of division I of 
the Omnibus Parks and Public Lands Management Act of 1996 (Public Law 
104-333; 110 Stat. 4228) and the amendments made by that section are 
repealed.
    (d) Water Rights.--Nothing in this section strengthens, diminishes, 
or has any other effect on water rights held by any person or entity.

SEC. 3. LAND EXCHANGE.

    (a) Land Exchange.--Upon application by the city of Portland, 
Oregon (referred to in this section as the ``city''), the Secretary of 
Agriculture shall enter into negotiations with the city for the 
transfer of National Forest System land underlying the city's Bull Run 
water supply facilities to the city in exchange for city-owned land 
lying within the boundaries of any unit of the National Forest System 
in Oregon or Washington.
    (b) Time for Exchange.--Subject to subsection (c), the Secretary 
shall expedite the negotiations, if the city applies for a land 
exchange under subsection (a), and shall complete such a land exchange 
not later than September 30, 2001.
    (c) Applicability of Other Laws.--Except as provided in subsection 
(d), any land exchange under this section shall be carried out in 
accordance with section 206 of the Federal Land Policy and Management 
Act of 1976 (43 U.S.C. 1716) and other applicable law.
    (d) Exception to Single State Limitation on Exchange.--The 
requirement that Federal and non-Federal parcels of land exchanged for 
each other must be located within the same State, as specified in the 
Act entitled ``An Act to Consolidate National Forest Lands'', approved 
March 20, 1922 (16 U.S.C. 485), and the first sentence of section 
206(b) of the Federal Land Policy and Management Act of 1976 (43 U.S.C. 
1716(b)), shall not apply to the land exchange authorized by this 
section.
Output: Amends Federal law to reestablish and add acreage to the Bull Run Watershed Management Unit in Oregon. 
Directs the Secretary of Agriculture or the Interior, as applicable, to prohibit the cutting of trees on Federal land in the entire unit. 
Repeals a provision of the:  (1) Oregon Resource Conservation Act of 1996 which requires certain Unit lands that are not contained in the Bull Run River Drainage to be managed in accordance with the law establishing the Unit; and (2) Omnibus Parks and Public Lands Management Act of 1996 regarding the Unit. 
Requires the Secretary of Agriculture:  (1) upon application by the city of Portland, Oregon, to enter into negotiations with the city for the transfer of National Forest System land underlying the city's Bull Run water supply facilities to the city in exchange for city- owned land lying within the boundaries of any unit of the National Forest System in Oregon or Washington; and (2) to expedite the negotiations and complete such land exchange not later than September 30, 2001.