authorizing or requiring surplus real and related personal property to be made available at less than fair market value, when property from which facilities have been relocated or replaced is disposed of pursuant to such law, the Government shall receive as compensation there for at least the lesser of the amount expended from the fund for relocation and replacement or one-third of the fair market value of the property.

(5) Appropriations are authorized to be made to the fund from any monies in the Treasury not otherwise appropriated in such amounts as may be deemed necess

Such appropriations shall be repaid without interest. The monies not required for repayment purposes shall continue to be available as otherwise provided by law. Periodically, but not less often than once each year, any excess funds beyond current operating needs and beyond those authorized to be obligated for replacement facilities, and such reserves for pending or prospective obligations as the Director of the Office of Management and Budget may establish, shall be transferred from the fund to miscellaneous receipts or as may be otherwise provided by law.

(6) The Administrator shall make an annual report of receipts, disbursements, and transfers under this subsection to the Director of the Office of Management and Budget and to the Congress."

Enclosed is a draft of a proposed bill "To amend the Land and Water Conservation Fund Act of 1965, as amended," to which the President refers in his Environment and Natural Resources State of the Union Message, transmitted to you today.

We recommend that this bill be referred to the appropriate committee for consideration, and we recommend that it be enacted.

The proposed legislation will accomplish several reforms in the administration of the Land and Water Conservation Fund, designed to increase the effectiveness of the expenditures in providing public recreation opportunities and open spaces where the unmet demands are greatest. The formula for apportionment of assistance among the States would be altered to give increased emphasis to the demands for additional recreation opportunities and open spaces in and near heavily populated urban areas. The Secretary of the Interior will be given added authority to review State implementation plans in order to assure compliance with this goal.

The bill will also authorize a State to use up to 25 percent of its total annual allocation to develop indoor recreation facilities within areas where the unavailability of land or climatic conditions provide no other feasible or prudent alternative to serve identified unmet demands for recreation resources.

The Office of Management and Budget has advised that enactment of this proposed legislation would be in accord with the program of the President.

A BILL

S. 922
H.R. 4865

To amend the Land and Water Conservation Fund Act of 1965, as amended.

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That the Land and Water Conservation Fund Act of 1965 (78 Stat. 897), as amended (16 U.S.C. 4601-4 et. seq.), is further amended as follows:

(a) In the title of the Land and Water Conservation Fund Act of 1965 and in subsections 1(b), 5(a), 5(d), and 5(f), after the word "outdoor" wherever it appears insert "and other".

(b) In the first sentence of subsection 5 (b), delete paragraphs numbered (1) and (2) and substitute the following:

"(1) 20 per centum shall be apportioned equally among the several States;

"(2) 75 per centum shall be apportioned on the basis of need to individual States by the Secretary in such amounts as in his judgment will best accomplish the purposes of this Act. The determination of need shall include, among other things, consideration of population density and urban concentration within individual States as well as a consideration of the Federal resources and programs in the particular State; and

"(3) 5 per centum shall be made available to individual States to meet special or emergency needs, as determined by the Secretary."

(c) In the third sentence of subsection 5(b), delete "7" and substitute "10"; at the end of the fifth sentence of said subsection, change the period to a comma and add "without regard to the 10 per centum limitation to an individual State specified in this subsection." and delete the last sentence of said subsection.

(d) In subsection 5 (d), delete paragraph numbered (2) and substitute the following:

" (2) an evaluation of the present and future demand for and supply of outdoor recreation resources and facilities in the State;"

(e) In subsection 5 (e) delete the paragraph numbered (2) and substitute the following paragraph:

" (2)

DEVELOPMENT

For development of basic outdoor recreation facilities to serve the general public, including the development of Federal lands under lease to States for terms of twenty-five years or more. Not more than 25 per centum of the total amount allocated to a State in any one year may be approved by the Secretary for the development of indoor recreation facilities within areas where the unavailability of land or climatic conditions provide no other feasible or prudent alternative to serve identified unmet demands for recreation resources."

(f) After the third paragraph of subsection 5 (f) of the existing law, insert the following new paragraph:

"The Secretary shall annually review each State's program to implement the statewide outdoor recreation plan and shall withhold payments to any State until he is satisfied that the State has taken appropriate action (1) toward ensuring that new recreation areas and facilities are being located to satisfy the highest priority unmet demands for recreation, especially in and near cities, particularly with respect to the resources that have been acquired or developed with funds apportioned to the State under section 5 (b) (2) of this Act; (2) to consider preservation of small natural areas, especially near cities; (3) to consider preservation of scenic areas through the acquisition of development rights, scenic easements, and other less-than-fee interests in lands of waters; and (4) to provide for appropriate multiple use of existing public lands, waters, and facilities, to help satisfy unmet demands for recreation resources."