SEC. 401. AMENDMENT OF URBAN PARK AND RECREATION RECOVERY ACT OF 1978.

• Except as otherwise expressly provided, whenever in this title an amendment or repeal is expressed in terms of an amendment to, or repeal of, a section or other provision, the reference shall be considered to be made to a section or other provision of the Urban Park and Recreation Recovery Act of 1978 (16 U.S.C. 2501 et seq.).

SEC. 402. PURPOSES.

• The purpose of this title is to provide a dedicated source of funding to assist local governments in improving their park and recreation systems.

SEC. 403. TREATMENT OF AMOUNTS TRANSFERRED FROM CONSERVATION AND REINVESTMENT ACT FUND.

• Section 1013 (16 U.S.C. 2512) is amended to read as follows:

`TREATMENT OF AMOUNTS TRANSFERRED FROM CONSERVATION AND REINVESTMENT ACT FUND

• `SEC. 1013. (a) IN GENERAL- Amounts transferred to the Secretary of the Interior under section 5(b)(4) of the Conservation and Reinvestment Act of 1999 in a fiscal year shall be available to the Secretary without further appropriation, to carry out this Act. Any amount that has not been paid or obligated by the Secretary before the end of the second fiscal year beginning after the first fiscal year in which the amount is available shall be reapportioned by the Secretary among grantees under this Act.

  `(b) LIMITATIONS ON ANNUAL GRANTS- Of the amounts available in a fiscal year under subsection (a)--

• • `(1) not more that 3 percent may be used for grants for the development of local park and recreation recovery action programs pursuant to sections 1007(a) and 1007(c);

• • `(2) not more than 10 percent may be used for innovation grants pursuant to section 1006; and

• • `(3) not more than 15 percent may be provided as grants (in the aggregate) for projects in any one State.

• `(c) LIMITATION ON USE FOR GRANT ADMINISTRATION- The Secretary shall establish a limit on the portion of any grant under this title that may be used for grant and program administration.'.

SEC. 404. AUTHORITY TO DEVELOP NEW AREAS AND FACILITIES.

• Section 1003 (16 U.S.C. 2502) is amended by inserting `development of new recreation areas and facilities, including the acquisition of lands for such development,' after `rehabilitation of critically needed recreation areas, facilities,'.

SEC. 405. DEFINITIONS.

• Section 1004 (16 U.S.C. 2503) is amended as follows:

• • (1) In paragraph (j) by striking `and' after the semicolon.

• • (2) In paragraph (k) by striking the period at the end and inserting a semicolon.

• • (3) By adding at the end the following:

• • `(l) `development grants'--

• • • `(1) subject to subparagraph (2) means matching capital grants to units of local government to cover costs of development, land acquisition, and construction on existing or new neighborhood recreation sites, including indoor and outdoor recreational areas and facilities, support facilities and landscaping; and

• • • `(2) does not include routine maintenance, and upkeep activities; and

• • `(m) `Secretary' means the Secretary of the Interior.'.

SEC. 406. ELIGIBILITY.

• Section 1005(a) (16 U.S.C. 2504(a)) is amended to read as follows:

  `(a) Eligibility of general purpose local governments to compete for assistance under this title shall be based upon need as determined by the Secretary. Generally, eligible general purpose local governments shall include the following:

• • `(1) All political subdivisions of Metropolitan, Primary, or Consolidated Statistical Areas, as determined by the most recent Census.

• • `(2) Any other city, town, or group of cities or towns (or both) within such a Metropolitan Statistical Area, that has a total population of 50,000 or more as determined by the most recent Census.

• • `(3) Any other county, parish, or township with a total population of 250,000 or more as determined by the most recent Census.'.

SEC. 407. GRANTS.

• Section 1006 (16 U.S.C. 2505) is amended--

• • (1) in subsection (a) by redesignating paragraph (3) as paragraph (4); and

• • (2) by striking so much as precedes subsection (a)(4) (as so redesignated) and inserting the following:

• `SEC. 1006. (a)(1) The Secretary may provide 70 percent matching grants for rehabilitation, development, and innovation purposes to any eligible general purpose local government upon approval by the Secretary of an application submitted by the chief executive of such government.

  `(2) At the discretion of such an applicant, a grant under this section may be transferred in whole or part to independent special purpose local governments, private nonprofit agencies, or county or regional park authorities, if--

• • `(A) such transfer is consistent with the approved application for the grant; and

• • `(B) the applicant provides assurance to the Secretary that the applicant will maintain public recreation opportunities at assisted areas and facilities owned or managed by the applicant in accordance with section 1010.

• `(3) Payments may be made only for those rehabilitation, development, or innovation projects that have been approved by the Secretary. Such payments may be made from time to time in keeping with the rate of progress toward completion of a project, on a reimbursable basis.'.

SEC. 408. RECOVERY ACTION PROGRAMS.

• Section 1007(a) (16 U.S.C. 2506(a)) is amended--

• • (1) in subsection (a) in the first sentence by inserting `development,' after `commitments to ongoing planning,'; and

• • (2) in subsection (a)(2) by inserting `development and' after `adequate planning for'.

SEC. 409. STATE ACTION INCENTIVES.

• Section 1008 (16 U.S.C. 2507) is amended--

• • (1) by inserting `(a) IN GENERAL- ' before the first sentence; and

• • (2) by striking the last sentence of subsection (a) (as designated by paragraph (1) of this section) and inserting the following:

• `(b) COORDINATION WITH LAND AND WATER CONSERVATION FUND ACTIVITIES- (1) The Secretary and general purpose local governments are encouraged to coordinate preparation of recovery action programs required by this title with State plans or agendas required under section 5 of the Land and Water Conservation Fund Act of 1965, including by allowing flexibility in preparation of recovery action programs so they may be used to meet State and local qualifications for local receipt of Land and Water Conservation Fund grants or State grants for similar purposes or for other conservation or recreation purposes.

• `(2) The Secretary shall encourage States to consider the findings, priorities, strategies, and schedules included in the recovery action programs of their urban localities in preparation and updating of State plans in accordance with the public coordination and citizen consultation requirements of subsection 6(d) of the Land and Water Conservation Fund Act of 1965.'.

SEC. 410. CONVERSION OF RECREATION PROPERTY.

• Section 1010 (16 U.S.C. 2509) is amended to read as follows:

`CONVERSION OF RECREATION PROPERTY

• `SEC. 1010. (a)(1) No property developed, acquired, or rehabilitated under this title shall, without the approval of the Secretary, be converted to any purpose other than public recreation purposes.

• `(2) Paragraph (1) shall apply to--

• • `(A) property developed with amounts provided under this title; and

• • `(B) the park, recreation, or conservation area of which the property is a part.

• `(b)(1) The Secretary shall approve such conversion only if the grantee demonstrates no prudent or feasible alternative exists.

  `(2) Paragraph (1) shall apply to property that is no longer a viable recreation facility due to changes in demographics or that must be abandoned because of environmental contamination which endangers public health or safety.

  `(c) Any conversion must satisfy any conditions the Secretary considers necessary to assure substitution of other recreation property that is--

• • `(1) of at least equal fair market value, or reasonably equivalent usefulness and location; and

• • `(2) in accord with the current recreation recovery action plan of the grantee.'.

SEC. 411. REPEAL.

• Section 1015 (16 U.S.C. 2514) is repealed.