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106th Congress                                            Rept. 106-392
                        HOUSE OF REPRESENTATIVES
 1st Session                                                     Part 1

======================================================================



 
           COUNTY SCHOOLS FUNDING REVITALIZATION ACT OF 1999

                                _______


                October 18, 1999.--Ordered to be printed

                                _______
                                

Mr. Combest, from the Committee on Agriculture, submitted the following

                              R E P O R T

                        [To accompany H.R. 2389]

      [Including cost estimate of the Congressional Budget Office]

    The Committee on Agriculture, to whom was referred the bill 
(H.R. 2389) to restore stability and predictability to the 
annual payments made to States and counties containing National 
Forest System lands and public domain lands managed by the 
Bureau of Land Management for use by the counties for the 
benefit of public schools, roads, and other purposes, 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; TABLE OF CONTENTS.

  (a) Short Title.--This Act may be cited as the ``County Schools 
Funding Revitalization Act of 1999''.
  (b) Table of Contents.--The table of contents of this Act is as 
follows:

Sec. 1. Short title; table of contents.
Sec. 2. Findings and purpose.
Sec. 3. Definitions.
Sec. 4. Determination of full payment amount for eligible States and 
counties.
Sec. 5. Forest Service payments to eligible States for affected 
counties to use for public education and transportation.
Sec. 6. Bureau of Land Management payments to eligible counties to use 
for the benefit of public safety, law enforcement, and other public 
purposes.
Sec. 7. Development of long-term methods to meet statutory obligation 
of Federal lands to contribute to public education and other public 
services.
Sec. 8. Sense of Congress regarding Advisory Committee recommendations.
Sec. 9. Authorization of appropriations.
Sec. 10. Conforming amendments.

SEC. 2. FINDINGS AND PURPOSE.

  (a) Findings.--The Congress finds the following:
          (1) The National Forest System, which is managed by the 
        United States Forest Service, was established in 1907 and has 
        grown to include 192,000,000 acres of Federal lands.
          (2) The public domain lands known as revested Oregon and 
        California Railroad grant lands and the reconveyed Coos Bay 
        Wagon Road grant lands, which are managed predominantly by the 
        Bureau of Land Management were returned to Federal ownership in 
        1916 and 1919 and now comprise approximately 2,600,000 acres of 
        Federal lands.
          (3) Congress recognized that, by securing these lands in 
        Federal ownership, the counties in which these lands were 
        situated would be deprived of revenues they would otherwise 
        receive if the lands were held in private ownership.
          (4) Even without such revenues, these same counties have 
        expended public funds year after year to provide services, such 
        as education, road construction and maintenance, search and 
        rescue, law enforcement, waste removal, and fire protection, 
        that directly benefit these Federal lands and people who use 
        these lands.
          (5) To accord a measure of compensation to the affected 
        counties for their loss of future revenues and for the critical 
        services they provide, Congress determined that the Federal 
        Government should share with these counties a portion of the 
        revenues the United States receives from these Federal lands.
          (6) Congress enacted in 1908 and subsequently amended a law 
        that requires 25 percent of the revenues derived from National 
        Forest System lands be paid to States for use by the counties 
        in which the lands are situated for the benefit of public 
        schools and roads.
          (7) Congress enacted in 1937 and subsequently amended a law 
        that requires 50 percent of the revenues derived from the 
        revested and reconveyed grant lands be paid to the counties in 
        which those lands are situated to be used as are other county 
        funds.
          (8) For several decades during the dramatic growth of the 
        American economy, counties dependent on and supportive of the 
        Federal lands received and relied on increasing shares of these 
        revenues to provide educational opportunities for the children 
        of residents of these counties.
          (9) In recent years, the principal source of these revenues, 
        Federal timber sales, has been sharply curtailed and, as the 
        volume of timber sold annually from most of the Federal lands 
        has decreased precipitously, so too have the revenues shared 
        with the affected counties.
          (10) This decline in shared revenues has severely impacted or 
        crippled educational funding in, and the quality of education 
        provided by, the affected counties.
          (11) In the Omnibus Budget Reconciliation Act of 1993, 
        Congress recognized this trend and ameliorated its adverse 
        consequences by providing an alternative annual safety net 
        payment to 72 counties in Oregon, Washington, and northern 
        California in which Federal timber sales had been restricted or 
        prohibited by administrative and judicial decisions to protect 
        the northern spotted owl.
          (12) The authority for these particular safety net payments 
        is expiring and no comparable authority has been granted for 
        alternative payments to counties elsewhere in the United States 
        that have suffered similar losses in shared revenues from the 
        Federal lands and in the educational funding those revenues 
        provide.
          (13) Although such alternative payments are not an adequate 
        substitute for the revenues, wages, purchasing of local goods 
        and services, and social opportunities that are generated when 
        the Federal lands are managed in a manner that encourages 
        revenue-producing activities, they are critically needed now to 
        stabilize educational funding in the affected counties.
  (b) Purposes.--The purposes of this Act are--
          (1) to arrest the decline in, and stabilize, the revenues 
        derived from National Forest System lands and revested and 
        reconveyed grant lands that the Federal Government shares with 
        counties in which these Federal lands are situated;
          (2) to assist the local governments that are so dependent on 
        and supportive of the Federal lands to restore the quality of 
        education that they were able to provide to the children of 
        residents of these counties before the recent severe reductions 
        in or curtailments of revenue-producing activities on those 
        lands;
          (3) to provide this temporary relief in a form that will 
        neither encourage the long-term reliance on appropriations, nor 
        discourage the management of the Federal lands in a manner that 
        will generate revenues, to meet the Federal Government's 
        statutory obligations to the counties that contain these lands; 
        and
          (4) to facilitate the development by the Federal Government 
        and the counties and school districts which benefit from the 
        shared Federal land revenues of a long-term method to generate 
        payments to States and counties that would avoid the need to 
        provide further temporary relief.

SEC. 3. DEFINITIONS.

  In this Act:
          (1) Federal lands.--The term ``Federal lands'' means--
                  (A) lands 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)); and
                  (B) the Oregon and California Railroad grant lands 
                revested in the United States by the Act of June 9, 
                1916 (Chapter 137; 39 Stat. 218), Coos Bay Wagon Road 
                grant lands reconveyed to the United States by the Act 
                of February 26, 1919 (Chapter 47; 40 Stat. 1179), and 
                subsequent additions to such lands.
          (2) Advisory committee.--The term ``Advisory Committee'' 
        means the Forest Counties Payments Committee established by 
        section 7.
          (3) Eligibility period.--The term ``eligibility period'' 
        means the period beginning on October 1, 1985, and ending on 
        September 30, 1999.
          (4) Eligible county.--The term ``eligible county'' means a 
        county that received one or more 50-percent payments during the 
        eligibility period.
          (5) Eligible state.--The term ``eligible State'' means a 
        State that received one or more 25-percent payments during the 
        eligibility period.
          (6) Full payment amount.--The term ``full payment amount'' 
        means the amount calculated for each eligible State and 
        eligible county under section 4.
          (7) House committees of jurisdiction.--The term ``House 
        committees of jurisdiction'' means the Committee on 
        Agriculture, the Committee on Resources, and the Committee on 
        Appropriations of the House of Representatives.
          (8) Senate committees of jurisdiction.--The term ``Senate 
        committees of jurisdiction'' means the Committee on 
        Agriculture, Nutrition, and Forestry, the Committee on Energy 
        and Natural Resources, and the Committee on Appropriations of 
        the Senate.
          (9) 25-percent payments.--The term ``25-percent payments'' 
        means the payments to States required by the 6th paragraph 
        under the heading of ``FOREST SERVICE'' in the Act of May 23, 
        1908 (35 Stat. 260; 16 U.S.C. 500), and section 13 of the Act 
        of March 1, 1911 (36 Stat. 963; 16 U.S.C. 500).
          (10) 50-percent payments.--The term ``50-percent payments'' 
        means the payments that are the sum of the 50-percent share 
        otherwise paid to a county pursuant to title II of the Act of 
        August 28, 1937 (Chapter 876; 50 Stat. 875; 43 U.S.C. 1181f), 
        and the payment made to a county pursuant to the Act of May 24, 
        1939 (chapter 144; 53 Stat. 753; 43 U.S.C. 1181f-1 et seq.).
          (11) Safety net payments.--The term ``safety net payments'' 
        means the payments to States and counties required by sections 
        13982 and 13983 of the Omnibus Budget Reconciliation Act of 
        1993 (Public Law 103-66; 16 U.S.C. 500 note; 43 U.S.C. 1181f 
        note).
          (12) Sustainable forestry.--The term ``sustainable forestry'' 
        means principles of sustainable forest management that equally 
        consider ecological, economic, and social factors in the 
        management of Federal lands.

SEC. 4. DETERMINATION OF FULL PAYMENT AMOUNT FOR ELIGIBLE STATES AND 
                    COUNTIES.

  (a) Calculation Required.--The Secretary of the Treasury shall 
calculate for each eligible State and eligible county an amount equal 
to the average of the three highest 25-percent payments, 50-percent 
payments, or safety net payments made to that eligible State or 
eligible county during the eligibility period.
  (b) Annual Adjustment.--For the second and each subsequent fiscal 
year in which payments are required to be made to eligible States and 
eligible counties under this Act, the Secretary of the Treasury shall 
adjust the full payment amount in effect for the previous fiscal year 
for each eligible State and eligible county to reflect changes in the 
consumer price index for urban areas (as published in the Bureau of 
Labor Statistics) that occur after publication of that index for fiscal 
year 1999.

SEC. 5. FOREST SERVICE PAYMENTS TO ELIGIBLE STATES FOR AFFECTED 
                    COUNTIES TO USE FOR PUBLIC EDUCATION AND 
                    TRANSPORTATION.

  (a) Requirement for Payments to Eligible States.--The Secretary of 
the Treasury shall make a payment to each eligible State in accordance 
with subsection (b) as early as practicable in each of fiscal years 
2000 through 2005.
  (b) Payment Amounts.--Each payment to an eligible State under 
subsection (a) shall consist of the following:
          (1) The amount of the 25-percent payments applicable to that 
        State.
          (2) If the amount under paragraph (1) is less than the full 
        payment amount for that State, such additional funds as are 
        necessary to provide a total payment equal to the full payment 
        amount.
  (c) Expenditure of Payments.--Eligible States shall distribute and 
expend the payments received under subsection (a) in the same manner in 
which the 25-percent payments are required to be distributed and 
expended.
  (d) Source of Additional Payment Amounts.--Funds necessary to make 
the payment required by subsection (b)(2), shall be derived, as 
determined by the Secretary of Agriculture, from any revenues received 
by the United States from activities on the Federal lands described in 
section 3(1)(A), funds appropriated for the Forest Service, or both 
sources, except--
          (1) programs from which the 25-percent payments are derived 
        and funds which, if paid to eligible States, would contribute 
        to a reduction in such revenues; and
          (2) funds from trust or other special accounts established by 
        statute for use by the Forest Service for specified purposes.

SEC. 6. BUREAU OF LAND MANAGEMENT PAYMENTS TO ELIGIBLE COUNTIES TO USE 
                    FOR THE BENEFIT OF PUBLIC SAFETY, LAW ENFORCEMENT, 
                    AND OTHER PUBLIC PURPOSES.

  (a) Requirement for Payments to Eligible Counties.--The Secretary of 
the Treasury shall make a payment to each eligible county in accordance 
with subsection (b) as early as practicable in each of fiscal years 
2000 through 2005.
  (b) Payment Amounts.--Each payment to an eligible county under 
subsection (a) shall consist of the following:
          (1) The amount of the 50-percent payments applicable to that 
        county.
          (2) If the amount under paragraph (1) is less than the full 
        payment amount for that county, such additional funds as are 
        necessary to provide a total payment equal to the full payment 
        amount.
  (c) Expenditure of Payments.--Eligible counties shall distribute and 
expend the payments received under subsection (a) in the same manner in 
which the 50-percent payments are required to be distributed and 
expended.
  (d) Source of Additional Payment Amounts.--Funds necessary to make 
the payment required by subsection (b)(2), shall be derived, as 
determined by the Secretary of the Interior, from any revenues received 
by the United States from activities on the Federal lands described in 
section 3(1)(B), funds appropriated for the Bureau of Land Management, 
or both, except--
          (1) programs from which the 50-percent payments are derived 
        and funds, which, if paid to eligible counties, would 
        contribute to a reduction in such revenues; and
          (2) funds from trust or other special accounts established by 
        statute for use by the Bureau of Land Management for specified 
        purposes.

SEC. 7. DEVELOPMENT OF LONG-TERM METHODS TO MEET STATUTORY OBLIGATION 
                    OF FEDERAL LANDS TO CONTRIBUTE TO PUBLIC EDUCATION 
                    AND OTHER PUBLIC SERVICES.

  (a) Forest Counties Payments Committee.--There is hereby established 
an advisory committee, to be known as the Forest Counties Payments 
Committee, to develop recommendations, consistent with sustainable 
forestry, regarding methods to ensure that States and counties in which 
Federal lands are situated receive adequate Federal payments to be used 
for the benefit of public education and other public purposes.
  (b) Members.--The Advisory Committee shall be composed of the 
following members:
          (1) The Chief of the Forest Service, or a designee of the 
        Chief who has significant expertise in sustainable forestry.
          (2) The Director of the Bureau of Land Management, or a 
        designee of the Director who has significant expertise in 
        sustainable forestry.
          (3) The Director of the Office of Management and Budget, or 
        the Director's designee.
          (4) Two members who are elected members of the governing 
        branches of eligible counties, one appointed by the President 
        pro tempore of the Senate (in consultation with the chairmen 
        and ranking members of the Senate committees of jurisdiction) 
        and one appointed by the Speaker of the House of 
        Representatives (in consultation with the chairmen and ranking 
        members of the House committees of jurisdiction) within 60 days 
        of the date of enactment of this Act.
          (5) Two members who are elected members of school boards for, 
        or superintendents from, school districts in eligible counties, 
        one appointed by the President pro tempore of the Senate (in 
        consultation with the chairmen and ranking members of the 
        Senate committees of jurisdiction) and one appointed by the 
        Speaker of the House of Representatives (in consultation with 
        the chairmen and ranking members of the House committees of 
        jurisdiction) within 60 days of the date of enactment of this 
        Act.
  (c) Advisory Committee Functions.--
          (1) Development of recommendations.--The Advisory Committee 
        shall develop recommendations for policy or legislative 
        initiatives, or both, to substitute for the short-term payments 
        required by this Act a long-term method to generate annual 
        payments to eligible States and eligible counties at or above 
        the full payment amount. Not later than two years after the 
        date of the enactment of this Act, the Advisory Committee shall 
        submit to the Senate committees of jurisdiction and the House 
        committees of jurisdiction a final report containing the 
        recommendations developed under this paragraph. The Advisory 
        Committee shall submit semiannual progress reports on its 
        activities and expenditures to the Senate committees of 
        jurisdiction and the House committees of jurisdiction until the 
        final report has been submitted.
          (2) Guidance.--In developing the recommendations required by 
        paragraph (1), the Advisory Committee shall seek to produce 
        adequate and reliable payments through revenues collected from 
        the historic multiple use of Federal lands, in accord with 
        sustainable forestry. Within the context of ensuring the long-
        term sustainable multiple use of Federal lands, the Advisory 
        Committee shall seek to ensure that revenues and payments so 
        generated will minimize adverse budgetary effects and generate 
        additional revenues, wages, purchasing of goods and services, 
        and other economic and social benefits to and for States, 
        counties, and schools.
          (3) Monitoring and reporting activities.--The Advisory 
        Committee shall monitor the payments made to eligible States 
        and eligible counties pursuant to this Act and submit to the 
        Senate committees of jurisdiction and the House committees of 
        jurisdiction an annual report describing the amounts and 
        sources of such payments and containing such comments as the 
        Advisory Committee may have regarding such payments.
          (4) Testimony.--The Advisory Committee shall make itself 
        available for testimony or comments on the reports required to 
        be submitted by the Advisory Committee and on any legislation 
        or regulations to implement any recommendations made in such 
        reports in any congressional hearings or any rulemaking or 
        other administrative decision process.
  (d) Organization of Advisory Committee.--
          (1) Chairperson.--The Chairperson of the Advisory Committee 
        shall be selected from among the members appointed pursuant to 
        paragraphs (4) and (5) of subsection (b).
          (2) Vacancies.--Any vacancy in the membership of the Advisory 
        Committee shall be filled in the same manner as required by 
        subsection (b). A vacancy shall not impair the right of the 
        remaining members to perform the functions authorized by 
        subsection (c).
          (3) Compensation.--The members of the Advisory Committee who 
        are not officers or employees of the United States, while 
        attending meetings or other events held by the Advisory 
        Committee or at which the members serve as representatives of 
        the Advisory Committee or while otherwise serving at the 
        request of the Chairperson, shall each be entitled to receive 
        compensation at a rate not in excess of the maximum rate of pay 
        for grade GS-18, as provided in the General Schedule under 
        section 5532 of title 5, United States Code, including 
        traveltime, and while away from their homes or regular places 
        of business shall each be reimbursed for travel expenses, 
        including per diem in lieu of subsistence as authorized by 
        section 5703 of title 5, United States Code, for persons in 
        Government service employed intermittently.
          (4) Geographic representation.--In making appointments under 
        paragraphs (4) and (5) of subsection (b), the President pro 
        tempore of the Senate and the Speaker of the House of 
        Representatives shall seek to ensure that the Advisory 
        Committee members are selected from geographically diverse 
        locations.
  (e) Staff and Rules.--
          (1) Executive director.--The Advisory Committee shall have an 
        Executive Director, who shall be appointed (without regard to 
        the provisions of title 5, United States Code, governing 
        appointments in the competitive service) by the Advisory 
        Committee and serve at the pleasure of the Advisory Committee. 
        The Executive Director shall report to the Advisory Committee 
        and assume such duties as the Advisory Committee may assign. 
        The Executive Director shall be paid at a rate of pay for grade 
        GS-18, as provided in the General Schedule under 5332 of title 
        5, United States Code.
          (2) Other staff.--In addition to authority to appoint 
        personnel subject to the provisions of title 5, United States 
        Code, governing appointments to the competitive service, and to 
        pay such personnel in accordance with the provisions of chapter 
        51 and subchapter III of chapter 53 of such title relating to 
        classification and General Schedule pay rates, the Advisory 
        Committee shall have authority to enter into contracts with 
        private or public organizations which may furnish the Advisory 
        Committee with such administrative and technical personnel as 
        may be necessary to carry out the functions authorized by 
        subsection (c). To the extent practicable, such administrative 
        and technical personnel, and other necessary support services, 
        shall be provided for the Advisory Committee by the Chief of 
        the Forest Service and the Director of the Bureau of Land 
        Management.
          (3) Committee rules.--The Advisory Committee may establish 
        such procedural and administrative rules as are necessary for 
        the performance of the functions authorized by subsection (c).
  (f) Federal Agency Cooperation.--The heads of the departments, 
agencies, and instrumentalities of the executive branch of the Federal 
Government shall cooperate with the Advisory Committee in the 
performance of its functions under subsection (c) and shall furnish to 
the Advisory Committee information which the Advisory Committee deems 
necessary to carry out such functions.
  (g) Committee Termination.--The Advisory Committee shall terminate 
three years after the date of the enactment of this Act.

SEC. 8. SENSE OF CONGRESS REGARDING ADVISORY COMMITTEE RECOMMENDATIONS.

  It is the sense of Congress that the payments to eligible States and 
eligible counties required by this Act should be replaced by a long-
term solution to generate payments conforming to the guidance provided 
by section 7(c)(2) and that any promulgation of regulations or 
enactment of legislation to establish such method should be completed 
within two years after the date of submission of the final report 
required by section 7(c)(1).

SEC. 9. AUTHORIZATION OF APPROPRIATIONS.

  There are hereby authorized to be appropriated such sums as are 
necessary to carry out this Act.

SEC. 10. CONFORMING AMENDMENTS.

  (a) Repeal of Safety Net Payments.--Sections 13982 and 13983 of the 
Omnibus Budget Reconciliation Act of 1993 (Public Law 103-66; 16 U.S.C. 
500 note; 43 U.S.C. 1181f note) are repealed.
  (b) Payments for Entitlement Land.--Section 6903(a)(1) of title 31, 
United States Code, is amended--
          (1) by redesignating subparagraphs (D) through (J) as 
        subparagraphs (E) through (K), respectively; and
          (2) by inserting after subparagraph (C) the following new 
        subparagraph:
                  ``(D) the County Schools Funding Revitalization Act 
                of 1999;''.

                           Brief Explanation

    H.R. 2389 restores stability and predictability to the 
annual payments made to the States and counties from National 
Forest System lands managed by the Forest Service, Department 
of Agriculture, and forest lands managed by the Bureau of Land 
Management, Department of the Interior. Eligible counties use 
the annual payments primarily for the benefit of public schools 
and roads.
    The bill can be divided into three distinct parts. The 
first part, comprising sections 1 through 3, contains the short 
title, findings and definitions. The second part, comprising 
sections 4 through 6, temporarily maintains and strengthens 
payments to states and counties in the short-term by 
establishing a guaranteed five-year safety net. This safety net 
establishes guaranteed payments to states and counties equal to 
the average payment of the highest three years since 1985.
    Sections 5 and 6 require the Forest Service and the Bureau 
of Land Management to make safety net payments to eligible 
states and counties from revenues generated from Federal lands 
and funds appropriated to the agencies. The agencies are 
prohibited from drawing the required payments from programs 
that generate revenue or trust funds and special accounts 
established by law for specific purposes.
    The third part of the bill, comprising Section 7 and all 
that follows, provides a method to improve Federal payments to 
states and counties for the long term. It establishes a 
``Forest Counties Payment Committee'' with membership 
representing Federal, county and education interests. The 
committee is charged with developing and submitting to Congress 
policy and/or legislative recommendations to permanently 
improve revenue-sharing payments to states and counties. The 
Chief of the Forest Service, Directors of BLM and OMB, and 
Congress select committee members.
    Section 8 of the bill establishes the sense of Congress 
that a permanent solution, based in whole or in part on the 
recommendations of the forest counties payment committee, 
should be put into place prior to the expiration of the short-
term safety net established by sections 5 and 6.

                            Purpose and Need

    The National Forest System, managed by the United States 
Department of Agriculture Forest Service, was established by 
the Organic Act of 1897 (30 Stat. 34; 16 U.S.C. 475). Since 
then, the National Forest System has grown to include 192 
million acres of Federal lands. The revested Oregon and 
California Railroad and the reconveyed Coos Bay Wagon Road 
grant lands are managed by the United States Department of the 
Interior Bureau of Land Management. The Bureau of Land 
Management is responsible for the management of forestlands in 
the Pacific Northwest under the Act of June 9, 1916 (Chapter 
137; 39 Stat. 218) and the Act of February 26, 1919 (Chapter 
47; 40 Stat. 1179). The lands comprise over 2.6 million acres.
    Congress recognized when it secured these lands under 
Federal ownership that it deprived the adjacent counties of 
revenues they would have otherwise received if the lands were 
sold or transferred into private ownership. Accordingly, in 
1908 Congress enacted a law providing that 25 percent of the 
revenues from National Forests be paid to the counties in which 
those lands were situated for the benefit of public schools and 
roads (Act of May 23, 1908, 35 Stat. 260, 16 U.S.C. 500; Act of 
March 1, 1911, 36 Stat. 963, 16 U.S.C. 500). Similarly, in 
1937, Congress established that 50 percent of the revenues from 
the revested and reconveyed Bureau of Land Management lands be 
paid to the counties in which those lands were located for 
similar public purposes (Act of August 28, 1937, 50 Stat. 875, 
43 U.S.C. 1181f; Act of May 24, 1939, 53 Stat. 753, 43 U.S.C. 
1181f-1 et seq.).
    Since their enactment, counties adjacent to Federal forests 
have relied on the compacts of 1908 and 1937 to help finance 
rural schools, roads and maintain a stable socio-economic 
infrastructure. In recent years, the principal source of these 
revenues, Federal timber sales, has declined by over 70 percent 
nationwide. The corresponding revenues shared with eligible 
counties throughout America have also declined precipitously. 
As a result, school districts have cancelled classes, cut 
teachers, eliminated extracurricular activities, and cut 
corners in every conceivable way. Local economies have also 
been decimated and families dislocated as parents have been 
forced to make ends meet by looking for work further and 
further from home.
    Congress provided partial relief to certain counties in 
Oregon, Washington and northern California in the Omnibus 
Budget Reconciliation Act of 1993 (OBRA) (P.L. 103-66). The 
OBRA established a temporary safety net payment for 72 counties 
in which Federal timber sales had been restricted or prohibited 
by administrative and judicial decisions to protect the 
northern spotted owl. However, the authority for these payments 
will expire on October 1, 2003. No comparable safety net 
authority has ever been established for counties elsewhere in 
the United States that have suffered similar or more severe 
losses in Federal payments.
    Congress needs to strengthen the compacts of 1908 and 1937 
for the short term to immediately arrest the decline in, and 
stabilize, the revenues derived from Federal forestlands until 
permanent improvements to existing law can be made. Congress 
must also assist local governments and school districts 
dependent on and supportive of the Federal lands to restore, 
for the long-term, the quality of education and quality of life 
provided to the children residing in these counties prior to 
the recent reductions in revenue-producing activities on these 
lands.
    H.R. 2389 achieves both of these important objectives. By 
establishing a temporary national safety net, the bill ensures 
a stable payment to forest communities for the short term while 
giving local communities and educators a direct stake in 
crafting a long-term policy that will put school children in 
forest communities on equal footing with their peers in other 
parts of the country.

                       Section-by-Section Summary


Section 1: Short Title; Table of Contents

    This Act may be cited as the ``County Schools Funding 
Revitalization Act of 1999.''

Section 2: Findings and Purpose

    The primary purposes of this Act are to: (1) Stabilize the 
revenue-sharing payments made by the Forest Service and Bureau 
of Land Management (BLM) to counties in which Federal lands are 
located; (2) help local governments and school districts 
restore the quality of education provided to children residing 
in such counties; (3) provide temporary relief to counties and 
school districts in the form of safety-net payments that will 
neither encourage the long-term reliance on appropriations nor 
discourage the management of Federal lands in a manner that 
will generate revenues; and (4) facilitate the development by 
the Federal government and the counties and school districts 
which benefit from the sharing of revenues, of a long-term 
method to provide payments to states and counties that will 
avoid the need to provide further temporary relief.

Section 3: Definitions

    This section defines several terms that are used frequently 
in this Act, most notably:
    The terms ``25-percent payments,'' ``50-percent payments'' 
and ``safety net payments'' identify the revenue-sharing 
payments that are made by the Forest Service and BLM to 
eligible counties under current law.
    The term ``sustainable forestry'' means principles of 
sustainable forest management that equally consider ecological, 
economic and social factors in the management of Federal lands.
    The Committee acknowledges that sustainable forestry is an 
evolving concept with several definitions. Most notable among 
these are the principles developed at the 1992 U.N. Conference 
on Environment and Development in Rio De Janeiro and the 1993 
Ministerial Conference on the Protection of Forests in Europe 
in Helsinki, Finland; and the criteria and indicators adopted 
in the 1993 Montreal Process. Each of these definitions places 
significant emphasis on the ecological, economic and social 
aspects of forest management, which are equally important to 
any plan, strategy, framework, decision, activity or other 
undertaking for or on Federal forestlands.
    It is the opinion of the Committee that sustainable 
forestry encompasses a broad range of management activities 
including, but not limited to, fire risk reduction, habitat 
improvement, forest rehabilitation following catastrophic 
events, infrastructure maintenance and restoration, commercial 
logging, watershed rehabilitation, arresting or preventing 
insect and disease infestations, recreation management, 
maintenance and enhancement of carbon storage capacity and 
other activities or practices that improve the long-term 
ability of the forest to provide a full range of ecological, 
social and economic benefits to people.

Section 4: Determination of Full Payment Amount for Eligible States and 
        Counties

    This section identifies how the temporary safety-net 
payments required by Sections 5 and 6 are calculated. The 
safety-net level, or ``full payment amount,'' is the average of 
the highest 25-percent, 50-percent or spotted owl safety net 
payments made to eligible states or counties between October 1, 
1985 and September 30, 1999. The full payment amount is 
adjusted annually, beginning in the second fiscal year in which 
it is in effect, to reflect changes in the consumer price index 
for urban areas.
    The Committee notes that the full payment amount 
established in section 4 is consistent with safety net payment 
levels supported by the Senate and the administration.

Sections 5 and 6: Forest Service and Bureau of Land Management Payments 
        to Eligible States and Counties

    These sections require the Forest Service (Section 5) and 
the Bureau of Land Management (Section 6) to make payments to 
eligible states and counties, in amounts not less than the 
``full payment amount'' established under Section 4, for each 
of fiscal years 2000 through 2005. The Forest Service and 
Bureau of Land Management are required to make their respective 
payments from revenues generated from Federal lands and funds 
appropriated for the agencies.
    The Forest Service and BLM have each had a legal obligation 
to make payments to states and counties since 1908 and 1937 
respectively. It is the intent of the Committee to maintain and 
strengthen these obligations for the short term through the 
funding mechanisms in these sections. For this reason, sections 
5 and 6 require that the short-term safety net payments to 
states and counties come from receipts and appropriated funds 
within the agencies. The Committee has been careful to maintain 
the discretion of the Chief of the Forest Service and the 
Director of the BLM to determine how to meet their respective 
payment obligations to states and counties within these 
parameters. It is the expectation of the Committee that the 
agencies will factor their payment obligations to counties, and 
the estimated portions of such payments supported by receipts 
and appropriated dollars, into the annual budget requests 
submitted to Congress following the date of the enactment of 
this Act.
    The Committee recognizes that, as a practical matter, 
revenues from Federal timber sales will not likely return to 
levels achieved historically in most areas of the country, 
particularly in western states. Nevertheless, the Committee 
encourages the Forest Service and BLM to continue to seek 
methods to improve receipts, consistent with the principles of 
sustainable forestry, from all revenue-generating uses of 
Federal forestlands, including recreation, commodity 
production, rights of way, special forest products, permits, 
and other commercial activities, as a means of meeting their 
legal obligations to states and counties in a fiscally 
responsible way.

Section 7: Development of Long-term Methods to Meet Statutory 
        Obligations

    This section establishes a ``Forest Counties Payment 
Committee'' (Payment Committee) charged with developing and 
submitting to Congress policy and/or legislative 
recommendations to improve revenue-sharing payments to states 
and counties for the long term. Payment Committee members are 
selected by the Chief of the Forest Service, the Director of 
the Bureau of Land Management, the Director of the Office of 
Management and Budget, and Congress. The Committee is required 
to submit its recommendations to Congress within a two-year 
period and must report regularly to Congress on its activities.
    Section 7 gives guidance to the Payment Committee that its 
final recommendations to Congress (1) seek to produce adequate 
and reliable payments to states and counties through revenues 
generated from Federal lands, (2) minimize adverse budgetary 
effects of such payments, and (3) generate additional revenues, 
wages, purchasing of goods and services and other economic and 
social benefits to and for states, counties and schools. As 
noted in the discussion of section 3 of the bill, the Committee 
has been careful to establish principles of sustainable 
forestry as the foundation for any recommendations to Congress 
ultimately proposed by the Payment Committee.
    It is the intent of the Committee to give the historic 
benefactors and beneficiaries of 25% and 50% payments direct 
involvement in crafting a permanent policy to improve the 
payment system. For this reason, the Payment Committee includes 
county officials, educators and representatives from the 
affected agencies. The Committee recognizes that the makeup of 
the Payment Committee does not represent every conceivable 
interest potentially affected by the policy recommendations 
ultimately submitted to the Congress. However, the Committee 
expects the Payment Committee to consult with a broad range of 
affected interests as it develops its recommendations.

Section 8: Sense of Congress

    This section provides the intent of Congress that 
legislation or regulations resulting from the recommendations 
of the Payment Committee established in section 7 replace the 
temporary payments required by this Act, and that such 
legislation or regulations be enacted or promulgated within two 
years of the receipt of such recommendations.

Section 9: Authorization of Appropriations

    This section authorizes appropriations to carry out the 
intent of this Act.

Section 10: Conforming Amendments

    This section repeals the spotted owl safety net payments 
established by Section 13982 of the Omnibus Budget 
Reconciliation Act of 1993.

                        Committee Consideration


                            I--Subcommittee

    On May 18, 1999, the Subcommittee on Department Operations, 
Oversight, Nutrition and Forestry held a hearing on Forest 
Service payments to counties (Serial No. 106-19). Testimony was 
taken from school superintendents and county officials. The 
purpose of the hearing was to review the obligation of the 
Forest Service to share revenues from national forest system 
lands with schools and counties, to examine the impact of 
declining national forest receipts on schools and counties, and 
to review a grass-roots proposal for stabilizing and improving 
the revenue sharing mechanism.
    Subsequently, on July 15, 1999, the Subcommittee held a 
hearing regarding H.R. 2389, the County Schools Funding 
Revitalization Act of 1999 (Serial No. 106-28). Testimony was 
taken from Members of Congress, the administration, school 
superintendents, county officials, and a trade association 
representative. The predominate issue discussed at the hearing 
was how to best restore and maintain the well-being of rural 
school children, their families, and the communities in which 
they live. Furthermore, the Subcommittee examined the prospects 
of revitalizing rural America's compact with the Federal 
government in a way that will benefit their children and 
maintain the ecological, social and economic integrity of 
forests and forest dependent communities in both the short and 
long-term.

                           II--Full Committee

    The Committee on Agriculture met, pursuant to notice and 
with a quorum present, on September 23, 1999, to consider H.R. 
2389. After opening remarks and a brief discussion of the bill, 
Chairman Combest recognized Mr. Ewing, Vice Chairman of the 
Subcommittee on Department Operations, Oversight, Nutrition and 
Forestry, for a unanimous consent request to discharge the 
Subcommittee. Without objection, it was so ordered.
    Chairman Combest then offered an en bloc amendment and 
recognized counsel and professional staff for a brief 
explanation of the amendment and bill. Discussion occurred and, 
without objection, the amendment was adopted.
    Mrs. Chenoweth and Mr. Goodlatte were also recognized and 
expressed their support for the bill.
    Mr. Stenholm then moved that the bill, H.R. 2389, be 
adopted and favorably reported to the House with a 
recommendation that it passes. Mr. Stenholm's motion was agreed 
to by a voice vote and in the presence of a quorum.
    Mr. Stenholm also moved, pursuant to clause 1 of rule XX, 
that the Committee authorize the Chairman to offer such motion 
as necessary in the House to go to conference with the Senate 
on H.R. 2389, or similar Senate legislation. Without objection, 
the motion was adopted.
    Without objection, instructions were given to staff to make 
any technical, clarifying, or conforming changes as were 
appropriate without changing the substance of the legislation.
    Chairman Combest thanked all the Members for their 
attentiveness and adjourned the meeting subject to the call of 
the Chair.

                   Reporting the Bill--Rollcall Votes

    In compliance with clause 3(b) of rule XIII of the House of 
Representatives, H.R. 2389, as amended, was reported by voice 
vote with a majority quorum present. There was no request for a 
recorded vote.

           Budget Act Compliance (Sections 308, 402, and 423)

    The provisions of clause 3(c)(2) of rule XIII of the Rules 
of the House of Representatives and section 308(a)(1) of the 
Congressional Budget Act of 1974 (relating to estimates of new 
budget authority, new spending authority, new credit authority, 
or increased or decreased revenues or tax expenditures) are not 
considered applicable. The estimate and comparison required to 
be prepared by the Director of the Congressional Budget Office 
under clause 3(c)(3) of rule XIII of the Rules of the House of 
Representatives and sections 402 and 423 of the Congressional 
Budget Act of 1974 submitted to the Committee prior to the 
filing of this report are as follows:

                                     U.S. Congress,
                               Congressional Budget Office,
                                   Washington, DC, October 1, 1999.
Hon. Larry Combest,
Chairman, Committee on Agriculture, House of Representatives, 
        Washington, DC.
    Dear Mr. Chairman: The Congressional Budget Office has 
prepared the enclosed revised cost estimate for H.R. 2389, the 
County Schools Funding Revitalization Act of 1999. This 
estimate supersedes the estimate provided on September 30, 
1999. Specifically, it corrects an error in the calculation of 
inflation adjustments for the payments required under the bill. 
The previous estimate overstated the increase in state and 
county payments; we discovered that error and corrected it to 
produce this revised estimate. The estimated outlays in 2000 
and 2001 resulting from enactment of H.R. 2389 are not affected 
by this change.
    If you wish further details on this estimate, we will be 
pleased to provide them. The CBO staff contacts are Victoria 
Heid Hall (for federal costs), and Marjorie Miller (for the 
state and local impact).
            Sincerely,
                                          Barry B. Anderson
                                    (For Dan L. Crippen, Director).
    Enclosure.

H.R. 2389--County Schools Funding Revitalization Act of 1999

    Summary: H.R. 2389 would require additional payments to 
those states and counties that received a portion of the 
receipts from the sale of resources on certain federal lands 
during fiscal years 1986 through 1999. The bill specifies a 
formula for the amount of these additional payments in 2000, 
and would require continuing such payments through 2005, 
including annual adjustments for inflation. H.R. 2389 specifies 
that the additional payments required by this bill would be 
made either from receipts from the use of certain federal 
lands, or from funds appropriated for the Forest Service or the 
Bureau of Land Management (BLM). CBO estimates that enacting 
H.R. 2389 would increase direct spending by $173 million in 
fiscal year 2000 and by about $1.1 billion over the 2000-2004 
period. Because enactment of H.R. 2389 would affect direct 
spending, pay-as-you-go procedures would apply. We estimate 
that implementing the bill would increase discretionary 
spending by less than $500,000 in each of fiscal years 2000 
through 2002, assuming appropriation of the necessary amounts.
    H.R. 2389 contains no intergovernmental or private-sector 
mandates as defined in the Unfunded Mandates Reform Act (UMRA) 
and would impose no costs on state, local, or tribal 
governments. The increased payments guaranteed by this bill 
would benefit eligible states and counties.
    Estimated Cost to the Federal Government: The estimated 
budgetary impact of H.R. 2389 is shown in the following table. 
The costs of this legislation fall within budget function 800 
(general government).

----------------------------------------------------------------------------------------------------------------
                                                                By fiscal year, in millions of dollars
                                                     -----------------------------------------------------------
                                                        1999      2000      2001      2002      2003      2004
----------------------------------------------------------------------------------------------------------------
             CHANGES IN DIRECT SPENDING

Spending Under Current Law: \1\
    Estimated Budget Authority......................       298       289       276       265       258       258
    Estimated Outlays...............................       298       289       276       265       258       258
Proposed Changes:
    Estimated Budget Authority......................         0       173       198       222       241       254
    Estimated Outlays...............................         0       173       198       222       241       254
Spending Under H.R. 2389:
    Estimated Budget Authority......................       298       462       474       487       499       512
    Estimated Outlays...............................       298       462       474       487       499       512

    CHANGES IN SPENDING SUBJECT TO APPROPRIATION

    Estimated Authorization Level...................         0     (\2\)     (\2\)     (\2\)         0         0
    Estimated Outlays...............................         0     (\2\)     (\2\)     (\2\)         0         0
----------------------------------------------------------------------------------------------------------------
\1\ Payments under current law include receipt-sharing and guaranteed payments to states and counties from lands
  administered by the Forest Service and BLM.
\2\ Less than $500,000.

    Basis of Estimate: CBO estimates that, relative to current 
law, enacting H.R. 2389 would increase direct spending by $173 
million in fiscal year 2000 and a total of $1.4 billion over 
the 2000-2005 period. Because we do not expect that there will 
be sufficient receipts to fully fund the additional payments, 
some of the payments would likely be made from amounts 
appropriated to the Forest Service and BLM. In addition, we 
estimate implementing the bill would require an increase in 
discretionary spending to operate the advisory committee 
created by the bill; such spending would total less than 
$500,000 in each of fiscal years 2000 through 2002.

                            direct spending

Receipt-Sharing and Guaranteed Payments Under Current Law

    Offsetting receipts generated from the sale of resources on 
federal land result in payments to states and counties based on 
formulas specific to the type of federal land involved and are 
known as receipt-sharing payments. H.R. 2389 would affect 
receipt-sharing payments from three types of federal land: 
National Forest System (NFS) lands, which are managed by the 
Forest Service; Oregon and California Railroad grant lands, 
which are managed by BLM or the Forest Service; and Coos Bay 
Wagon Road (CBWR) grant lands, which are managed by BLM.
    Eligible states and counties receive 25 percent of the 
receipts from the sale of resources on NFS land, and 50 percent 
of receipts from the use of Oregon and California grant lands 
and Coos Bay Wagon Road grant lands are distributed to eligible 
counties. However, a different payment process is temporarily 
in effect for certain counties where federal land is affected 
by decisions related to the northern spotted owl. Under the 
Omnibus Budget Reconciliation Act of 1993 (OBRA-93), those 
counties receive a special guaranteed payment (also called a 
safety net payment) through fiscal year 2003 based on the 
historic levels of their receipt-sharing payments from the 
federal government.

Additional Payments

    The bill would repeal the current safety net payments 
created by OBRA-93 and replace them with the new payment 
required by this bill. For fiscal year 2000, H.R. 2389 would 
require the Secretary of the Treasury to pay each eligible 
state and county the higher of either the receipt-sharing 
payment currently applicable to the federal land in that 
jurisdiction, or an amount equal to the average of the three 
highest receipt-sharing payments (or safety net payments) that 
the jurisdiction received between 1986 and 1999. After fiscal 
year 2000, this payment would continue to be made to each 
eligible state and county through 2005, with an annual 
adjustment for inflation. Based on information from the Forest 
Service and BLM, we estimate that the payments required by H.R. 
2389 would increase federal payments to states and counties by 
$173 million in fiscal year 2000 and a total of about $1.4 
billion over the 2000-2005 period.

Potential Effect on Receipts

    Additional payments required by H.R. 2389 would be funded 
either from revenues received on the relevant federal land, or 
from appropriations to the Forest Service and BLM. Enacting 
H.R. 2389 may create an incentive to generate additional 
receipts in order to finance the additional payments required. 
However, based on information from the Forest Service and BLM, 
we estimate the agencies would not raise significant additional 
receipts as a result of enacting this bill.

                   spending subject to appropriation

    H.R. 2389 would establish an advisory committee, to be 
known as the Forest Counties Payments Committee, to develop 
recommendations regarding methods to ensure that states and 
counties in which federal lands are located receive adequate 
federal payments. The bill would authorize the appropriation of 
such sums as necessary for the committee, which would terminate 
three years after enactment. We estimate that implementing this 
provision would cost less than $500,000 for each of fiscal 
years 2000 through 2002, assuming appropriation of the 
necessary amounts.
    Pay-as-You-Go Considerations: The Balanced Budget and 
Emergency Deficit Control Act sets up pay-as-you-go procedures 
for legislation affecting direct spending or receipts. The net 
changes in outlays that are subject to pay-as-you-go procedures 
as shown in the following table. For the purposes of enforcing 
pay-as-you-go procedures, only the effects in the current year, 
the budget year, and the succeeding four years are counted.

----------------------------------------------------------------------------------------------------------------
                                                        By fiscal year, in millions of dollars
                                    ----------------------------------------------------------------------------
                                      1999   2000   2001   2002   2003   2004   2005   2006   2007   2008   2009
----------------------------------------------------------------------------------------------------------------
Changes in outlays.................      0    173    198    222    241    254    265      0      0      0      0
Changes in receipts................                                 Not applicable
----------------------------------------------------------------------------------------------------------------

    Intergovernmental and Private-Sector Impact: H.R. 2389 
contains no intergovernmental or private-sector mandates as 
defined in UMRA and would impose no costs on state, local, or 
tribal governments. The increased payments guaranteed by this 
bill would benefit eligible states and counties.
    Previous CBO Estimate: On September 30, 1999, CBO provided 
a cost estimate for the County Schools Funding Revitalization 
Act of 1999, as ordered reported by the House Committee on 
Agriculture on September 23, 1999. This estimate supersedes 
that previous estimate. Specifically, it corrects an error in 
the calculation of inflation adjustments in 2002 through 2005 
for the payments required under the bill. The previous estimate 
overstated the increase in state and county payments based on 
inflation. The estimate has been corrected accordingly. The 
estimated outlays in 2000 and 2001 resulting from enactment of 
H.R. 2389 are not affected by this change.
    Estimate Prepared by: Federal costs: Victoria Heid Hall. 
Impact on State, local, and tribal governments: Marjorie 
Miller.
    Estimate Approved by: Peter H. Fontaine, Deputy Assistant 
Director for Budget Analysis.

                        Committee Cost Estimate

    Pursuant to clause 3(d)(2) of rule XIII of the Rules of the 
House of Representatives, the Committee report incorporates the 
cost estimate prepared by the Director of the Congressional 
Budget Office pursuant to sections 402 and 423 of the 
Congressional Budget Act of 1974.

                   Constitutional Authority Statement

    Pursuant to clause 3(d)(1) of rule XIII of the Rules of the 
House of Representatives, the Committee finds the 
Constitutional authority for this legislation in Article I, 
clause 8, section 18, that grants Congress the power to make 
all laws necessary and proper for carrying out the powers 
vested by the Constitution in the Government of the United 
States or in any department or officer thereof.

                          Oversight Statement

    No summary of oversight findings and recommendations made 
by the Committee on Government Reform, as provided for in 
clause 3(c)(4) of rule XIII of the Rules of the House of 
Representatives, was available to the Committee with reference 
to the subject matter specifically addressed by H.R. 2389.

                      Committee Oversight Findings

     Pursuant to clause 3(c)(1) of rule XIII of the Rules of 
the House of Representatives, the Committee on Agriculture's 
oversight findings and recommendations are reflected in the 
body of this report.

                      Advisory Committee Statement

    Section 7 of this legislation creates a ``Forest Counties 
Payment Committee'' which is subject to the Federal Advisory 
Committee Act (FACA) (U.S.C. App.). Pursuant to section 5 of 
FACA, the Committee on Agriculture has determined that the 
functions of the proposed Forest Counties Payment Committee are 
not and cannot be performed by one or more agencies, by an 
existing advisory committee, or by enlarging the mandate of an 
existing advisory committee. Furthermore, the Committee on 
Agriculture has determined that this legislation meets all the 
requirements of section 5(b)(1)-(5) of FACA.

                Applicability to the Legislative Branch

    The Committee finds that the legislation does not relate to 
the terms and conditions of employment or access to public 
services or accommodations within the meaning of section 
102(b)(3) of the Congressional Accountability Act (Public Law 
104-1).

                       Federal Mandates Statement

    The Committee adopted as its own the estimate of Federal 
mandates prepared by the Director of the Congressional Budget 
Office pursuant to section 423 of the Unfunded Mandates Reform 
Act (Public Law 104-4).

         Changes in Existing Law Made by the Bill, as Reported

  In compliance with clause 3(e) of rule XIII of the Rules of 
the House of Representatives, changes in existing law made by 
the bill, as reported, are shown as follows (existing law 
proposed to be omitted is enclosed in black brackets, new 
matter is printed in italic, existing law in which no change is 
proposed is shown in roman):

                OMNIBUS BUDGET RECONCILIATION ACT OF 1993

           *       *       *       *       *       *       *



  TITLE XIII--REVENUE, HEALTH CARE, HUMAN RESOURCES, INCOME SECURITY, 
CUSTOMS AND TRADE, FOOD STAMP PROGRAM, AND TIMBER SALE PROVISIONS

           *       *       *       *       *       *       *



                       CHAPTER 4--TIMBER SALES

           *       *       *       *       *       *       *



[SEC. 13982. SHARING OF FOREST SERVICE TIMBER SALE RECEIPTS.

  [(a) Definitions.--As used in this section:
          [(1) Applicable percentage.--The term ``applicable 
        percentage'' means--
                  [(A) for fiscal year 1994, 85 percent; and
                  [(B) for each of fiscal years 1995 through 
                2003, 3 percentage points less than the 
                applicable percentage for the preceding fiscal 
                year.
          [(2) 25-percent payments to states.--The term ``25-
        percent payments to States'' means the 25 percent 
        payments authorized by the Act of May 23, 1908 (35 
        Stat. 260, chapter 192; 16 U.S.C. 500) for the States 
        of Washington, Oregon, and California for the benefit 
        of counties in which national forests are situated and 
        that are affected by decisions related to the northern 
        spotted owl.
          [(3) Special payment amount.--The term ``special 
        payment amount'' means the amount determined by 
        multiplying--
                  [(A) the applicable percentage; by
                  [(B) the annual average of the 25-percent 
                payments to States made to a county pursuant to 
                such Acts during the 5-year period consisting 
                of fiscal years 1986 through 1990.
  [(b) Payments.--
          [(1) In general.--In lieu of making the 25-percent 
        payments to States, the Secretary of the Treasury shall 
        make payments to States, out of any money in the 
        Treasury not otherwise appropriated, for the benefit of 
        counties, that are eligible to receive the 25-percent 
        payments to States as of the date of enactment of this 
        Act in accordance with paragraph (2).
          [(2) Amount of payments.--
                  [(A) Fiscal years 1994 through 1998.--For 
                each of fiscal years 1994 through 1998, the 
                payment to each State for the benefit of each 
                county in the State referred to in paragraph 
                (1) shall be equal to the sum of the special 
                payment amounts for each county in the State.
                  [(B) Fiscal years 1999 through 2003.--
                          [(i) In general.--For each of fiscal 
                        years 1999 through 2003, the payment to 
                        each State for the benefit of each 
                        county in the State referred to in 
                        paragraph (1) shall be equal to the sum 
                        of the payments for each county in the 
                        State as calculated under clause (ii).
                          [(ii) Payments for counties.--The 
                        payment for each county referred to in 
                        clause (i) shall be equal to the 
                        greater of--
                                  [(I) the special payment 
                                amount for the county; or
                                  [(II) the share of the 25-
                                percent payments to States 
                                allocable to the county.

[SEC. 13983. SHARING OF BUREAU OF LAND MANAGEMENT TIMBER SALE RECEIPTS.

  [(a) Definitions.--As used in this section:
          [(1) Applicable percentage.--The term ``applicable 
        percentage'' means--
                  [(A) for fiscal year 1994, 85 percent; and
                  [(B) for each of fiscal years 1995 through 
                2003, 3 percentage points less than the 
                applicable percentage for the preceding fiscal 
                year.
          [(2) 50-percent payments to counties.--The term ``50-
        percent payments to counties'' means the 50-percent 
        share paid to counties in the States of Oregon and 
        California pursuant to title II of the Act of August 
        28, 1937 (50 Stat. 875, chapter 876; 43 U.S.C. 1181f), 
        and the payments made to counties pursuant to the Act 
        of May 24, 1939 (53 Stat. 753, chapter 144; 43 U.S.C. 
        1181f-1 et seq.).
          [(3) Special payment amount.--The term ``special 
        payment amount'' means the amount determined by 
        multiplying--
                  [(A) the applicable percentage; by
                  [(B) the annual average of the 50-percent 
                payments to counties made to a county pursuant 
                to such Acts during the 5-year period 
                consisting of fiscal years 1986 through 1990.
  [(b) Payments.--
          [(1) In general.--In lieu of making the 50-percent 
        payments to counties, the Secretary of the Treasury 
        shall make payments, out of any money in the Treasury 
        not otherwise appropriated, to counties that are 
        eligible to receive the 50-percent payments as of the 
        date of enactment of this Act in accordance with 
        paragraph (2).
          [(2) Amount of payments.--
                  [(A) Fiscal years 1994 through 1998.--For 
                each of fiscal years 1994 through 1998, the 
                Secretary of the Treasury shall pay to each 
                county referred to in paragraph (1) the special 
                payment amount.
                  [(B) Fiscal years 1999 through 2003.--For 
                each of fiscal years 1999 through 2003, the 
                Secretary of the Treasury shall pay to each 
                county referred to in paragraph (1) the greater 
                of--
                          [(i) the special payment amount; or
                          [(ii) the share of the 50-percent 
                        payments to counties allocable to the 
                        county.]

           *       *       *       *       *       *       *

                              ----------                              


              SECTION 6903 OF TITLE 31, UNITED STATES CODE

Sec. 6903. Payments

  (a) In this section--
          (1) ``payment law'' means--
                  (A) the Act of June 20, 1910 (ch. 310, 36 
                Stat. 557);
                  (B) section 33 of the Bankhead-Jones Farm 
                Tenant Act (7 U.S.C. 1012);
                  (C) the Act of May 23, 1908 (16 U.S.C. 500);
                  (D) the County Schools Funding Revitalization 
                Act of 1999;
                  [(D)] (E) section 5 of the Act of June 22, 
                1948 (16 U.S.C. 577g, 577g-1);
                  [(E)] (F) section 401(c)(2) of the Act of 
                June 15, 1935 (16 U.S.C. 715s(c)(2));
                  [(F)] (G) section 17 of the Federal Power Act 
                (16 U.S.C. 810);
                  [(G)] (H) section 35 of the Act of February 
                25, 1920 (30 U.S.C. 191);
                  [(H)] (I) section 6 of the Mineral Leasing 
                Act for Acquired Lands (30 U.S.C. 355);
                  [(I)] (J) section 3 of the Act of July 31, 
                1947 (30 U.S.C. 603); and
                  [(J)] (K) section 10 of the Act of June 28, 
                1934 (known as the Taylor Grazing Act) (43 
                U.S.C. 315i).

           *       *       *       *       *       *       *