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104th Congress                                                   Report
                        HOUSE OF REPRESENTATIVES

 2d Session                                                     104-701
_______________________________________________________________________


 
             WALHALLA NATIONAL FISH HATCHERY CONVEYANCE ACT

                                _______
                                

 July 24, 1996.--Committed to the Committee of the Whole House on the 
              State of the Union and ordered to be printed

                                _______
                                

  Mr. Young of Alaska, from the Committee on Resources, submitted the 
                               following

                              R E P O R T

                        [To accompany H.R. 3546]

      [Including cost estimate of the Congressional Budget Office]

  The Committee on Resources, to whom was referred the bill 
(H.R. 3546) to direct the Secretary of the Interior to convey 
the Walhalla National Fish Hatchery to the State of South 
Carolina, having considered the same, report favorably thereon 
with an amendment and recommend that the bill as amended do 
pass.
  The amendment is as follows:
  Strike out all after the enacting clause and insert in lieu 
thereof the following:

SECTION 1. SHORT TITLE.

  This Act may be cited as the ``Walhalla National Fish Hatchery 
Conveyance Act''.

SEC. 2. CONVEYANCE OF WALHALLA NATIONAL FISH HATCHERY TO THE STATE OF 
                    SOUTH CAROLINA.

  (a) Conveyance Requirement.--Within 180 days after the date of the 
enactment of this Act, the Secretary of the Interior shall convey to 
the State of South Carolina without reimbursement all right, title, and 
interest of the United States in and to the property described in 
subsection (b), for use by the South Carolina Department of Natural 
Resources as part of the State of South Carolina fish culture program.
  (b) Property Described.--The property referred to in subsection (a) 
is the property known as the Walhalla National Fish Hatchery, located 
on Indian Camp Creek and the East Fork of Chattooga River off of State 
Secondary Highway 325 in northern Oconee County, South Carolina, 
consisting of 76.2 acres (more or less), all improvements and related 
personal property under the control of the Secretary that is located on 
that property, including buildings, structures, and equipment, and all 
easements, leases, and water rights relating to that property.
  (c) Reversionary Interest.--If any of the property conveyed to the 
State of South Carolina under this section is used for any purpose 
other than the use authorized under subsection (a), all right, title, 
and interest in and to all property conveyed under this section shall 
revert to the United States. The State of South Carolina shall ensure 
that all property reverting to the United States under this subsection 
is in substantially the same or better condition as at the time of 
transfer to the State.

                          PURPOSE OF THE BILL

    The purpose of H.R. 3546 is to direct the Secretary of the 
Interior to convey the Walhalla National Fish Hatchery to the 
State of South Carolina.

                  BACKGROUND AND NEED FOR LEGISLATION

    The Walhalla National Fish Hatchery (NFH) is located in the 
Blue Ridge Mountains in the northwest corner of the State of 
South Carolina. It is in the Sumter National Forest of Oconee 
County and is 23 miles from the Town of Walhalla.
    The Hatchery property consists of approximately 78 acres. 
This land was originally purchased by Oconee County from the 
Whitewater River Lumber Company for $1,040. It was donated by 
Oconee County to the Federal Government for the specific 
purpose of building a fish cultural station.
    In 1930, Congress officially established the site, under 
the legislative authority of the White Act, as a National Fish 
Hatchery. The Hatchery was initially known as the Indian Camp 
Fish Culture Station and then as the Chattooga Fish Hatchery. 
The first fish stocking took place in 1937.
    In the early years, the Hatchery produced fish that were 
used mainly for stocking in the forest streams of South 
Carolina. This was later expanded to include streams in 
Georgia, North Carolina and Tennessee. For most of its history, 
Walhalla has raised brook, brown and rainbow trout. It also 
provided trout eggs to numerous Federal and State hatcheries 
across the country. Brook trout production ceased in 1986.
    In recent years, the Hatchery produced fish primarily for 
Federal waters within Georgia and South Carolina. In fact, 
681,300 rainbow trout and 406,600 brown trout were distributed 
in 1995. When available, surplus fish were provided to the 
Cherokee Indian Tribal Hatchery in North Carolina.
    According to data provided by the U.S. Fish and Wildlife 
Service, over 45,800 anglers fish for trout in South Carolina 
waters for a total of 66,700 days of effort annually. This 
activity produces an annual economic impact of $12,664,000.
    On January 23, 1996, operational control over the Walhalla 
NFH was transferred by a Memorandum of Understanding from the 
Federal Government to the State of South Carolina. This 
transfer was necessary because the U.S. Fish and Wildlife 
Service intended to close this facility because it is no longer 
essential to the Service's nationwide stocking program.
    This facility is extremely important to the State of South 
Carolina because it is the only public source for brown trout, 
there is no reasonable alternative for stocking the State's 
waters, and without these fish, there is no viable sport 
fishing for trout. While privately produced trout are 
available, this option was explored and rejected because of a 
lack of supply control, cost fluctuations and the potential 
introduction of diseases.
    The Hatchery, which was constructed in 1937 by the Civilian 
Construction Corps and the Works Progress Administration, 
consists of a coal house, feed storage building, garages and a 
workshop, the hatchery building, office building and storage, 
and three residences. Between 1955 and 1965, several major 
improvements were made to the Hatchery in order to modernize 
and increase production capabilities. For instance, the 
original 34 circular ponds were replaced by 20 so-called 
production raceways, a food preparation/cold storage facility 
was built, and a multi-purpose building with spaces for an 
office, a shop, and garage areas was constructed. While there 
has been no recent cost appraisal of the Hatchery facilities, 
the author of the bill has indicated that the land has been 
currently assessed at $125,000.
    The adjacent 26 acres, which were also donated to the 
Federal Government by Oconee County, are not affected by this 
transfer and they will remain under the jurisdiction of the 
U.S. Forest Service.
    In its fiscal year 1996 budget submission, the Clinton 
Administration recommended that a number of Federal fish 
hatcheries, including Walhalla NFH, be transferred to willing 
States. This facility, therefore, qualifies for the three years 
of declining Federal transitional assistance.

                            COMMITTEE ACTION

    H.R. 3546 was introduced on May 29, 1996, by Congressman 
Lindsey Graham (R-SC). The bill was referred to the Committee 
on Resources and within the Committee to the Subcommittee on 
Fisheries, Wildlife and Oceans.
    On June 13, 1996, the Subcommittee held a hearing on H.R. 
3546. Testifying in support of the bill were Congressman 
Lindsey Graham and Mr. William Knapp, Chief, Division of Fish 
Hatcheries, U.S. Fish and Wildlife Service. In his testimony, 
Mr. Knapp said that ``all parties will benefit from the 
conveyance of ownership of [the Walhalla NFH].''
    On June 27, 1996, the Subcommittee on Fisheries, Wildlife 
and Oceans met to mark up H.R. 3546. At that time, Mr. Studds 
offered an amendment to clarify the reversionary language in 
section 2 of the bill. The amendment was adopted by voice vote. 
The bill, as amended, was then ordered reported favorably to 
the Full Committee on Resources by voice vote.
    On July 17, 1996, the Committee on Resources met to 
consider H.R. 3546. There were no amendments and the Committee 
ordered the bill reported to the House of Representatives by 
voice vote, in the presence of a quorum.

                      SECTION-BY-SECTION ANALYSIS

Section 1. Short title

    This bill may be cited as the ``Walhalla National Fish 
Hatchery Conveyance Act''.

Section 2. Conveyance of Walhalla National Fish Hatchery to the State 
        of South Carolina

    Section 2(a) directs the Secretary of the Interior to 
convey to the State of South Carolina, within 180 days and 
without reimbursement, all right, title, and interest of the 
United States in the Hatchery property for use by the South 
Carolina Department of Natural Resources.
    Section 2(b) states that the fish hatchery is located in 
Oconee County, South Carolina, consists of 76.2 acres and 
includes buildings, structures, and equipment and all 
easements, leases, and water rights relating to that property.
    Section 2(c) mandates that the property shall revert to the 
United States if the State of South Carolina decides to no 
longer use the property as part of the State's fish culture 
program and requires the State to ensure that the property is 
in substantially the same or better condition at the time of 
transfer.

            COMMITTEE OVERSIGHT FINDINGS AND RECOMMENDATIONS

    With respect to the requirements of clause 2(l)(3) of rule 
XI of the Rules of the House of Representatives, and clause 
2(b)(1) of rule X of the Rules of the House of Representatives, 
the Committee on Resources' oversight findings and 
recommendations are reflected in the body of this report.

                     INFLATIONARY IMPACT STATEMENT

    Pursuant to clause 2(l)(4) of rule XI of the Rules of the 
House of Representatives, the Committee estimates that the 
enactment of H.R. 3546 will have no significant inflationary 
impact on prices and costs in the operation of the national 
economy.

                        COST OF THE LEGISLATION

    Clause 7(a) of rule XIII of the Rules of the House of 
Representatives requires an estimate and a comparison by the 
Committee of the costs which would be incurred in carrying out 
H.R. 3546. However, clause 7(d) of that rule provides that this 
requirement does not apply when the Committee has included in 
its report a timely submitted cost estimate of the bill 
prepared by the Director of the Congressional Budget Office 
under section 403 of the Congressional Budget Act of 1974.

                     COMPLIANCE WITH HOUSE RULE XI

    1. With respect to the requirement of clause 2(l)(3)(B) of 
rule XI of the Rules of the House of Representatives and 
section 308(a) of the Congressional Budget Act of 1974, H.R. 
3546 does not contain any new budget authority, spending 
authority, credit authority, or an increase or decrease in 
revenues or tax expenditures.
    2. With respect to the requirement of clause 2(l)(3)(D) of 
rule XI of the Rules of the House of Representatives, the 
Committee has received no report of oversight findings and 
recommendations from the Committee on Government Reform and 
Oversight on the subject of H.R. 3546.
    3. With respect to the requirement of clause 2(l)(3)(C) of 
rule XI of the Rules of the House of Representatives and 
section 403 of the Congressional Budget Act of 1974, the 
Committee has received the following cost estimate for H.R. 
3546 from the Director of the Congressional Budget Office.

               CONGRESSIONAL BUDGET OFFICE COST ESTIMATE

                                     U.S. Congress,
                               Congressional Budget Office,
                                     Washington, DC, July 23, 1996.
Hon. Don Young,
Chairman, Committee on Resources,
House of Representatives, Washington, DC.
    Dear Mr. Chairman: The Congressional Budget Office has 
reviewed H.R. 3546, the Walhalla National Fish Hatchery 
Conveyance Act, as ordered reported by the House Committee on 
Resources on July 17, 1996.
    H.R. 3546 would direct the Secretary of the Interior to 
convey to the state of South Carolina the Walhalla National 
Fish Hatchery, without reimbursement. Because this facility is 
already operated by the state, we expect that implementing H.R. 
3546 would have no significant impact on the federal budget. 
The bill would not affect direct spending or receipts; 
therefore, pay-as-you-go procedures would not apply.
    H.R. 3546 contains no intergovernmental or private-sector 
mandates as defined in Public Law 104-4 and would impose no 
costs on state, local, or tribal governments.
    If you wish further details on this estimate, we will be 
pleased to provide them. The CBO staff contacts are Deborah 
Reis (for federal costs), and Marjorie Miller (for the state 
and local impact).
            Sincerely,
                                         June E. O'Neill, Director.

                    COMPLIANCE WITH PUBLIC LAW 104-4

    H.R. 3546 contains no unfunded mandates.

                        CHANGES IN EXISTING LAW

    If enacted, H.R. 3546 would make no changes in existing 
law.