SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Timber-Dependent Counties 
Stabilization Act of 1998''.

SEC. 2. SHARING OF FOREST SERVICE TIMBER SALE RECEIPTS.

    (a) Payments.--
            (1) Fiscal years 1999 through 2003.--In lieu of making the 
        25-percent payments to States for each of fiscal years 1998 
        through 2003, the Secretary of the Treasury shall pay to each 
        State that is otherwise eligible to receive those payments the 
        special payment amount determined for that State.
            (2) Fiscal years after fiscal year 2003.--
                    (A) In general.--For each fiscal year after fiscal 
                year 2003, the Secretary of the Treasury shall pay to 
                each State that is otherwise eligible for the 25-
                percent payments to States, as elected by the State, 
                either--
                            (i) the special payment amount determined 
                        for that State, in lieu of the 25-percent 
                        payments to States otherwise applicable for 
                        that State; or
                            (ii) the 25-percent payments to States 
                        applicable for that State.
                    (B) Election.--The election under subparagraph (A) 
                shall be made by the Governor of a State, for all 
                fiscal years after fiscal year 2003, by not later than 
                5 years after the date of the enactment of this Act. If 
                the Governor of a State fails to make the election by 
                that date, the State is deemed to have elected the 
                payment described in subparagraph (A)(i).
            (3) Expenditure by states.--Amounts paid to a State under 
        this subsection shall be expended by the State in the same 
        manner in which 25-percent payments to States are required to 
        be expended.
    (b) Definitions.--As used in this section:
            (1) 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 benefit of counties in which national 
        forests are situated, as in effect immediately before the date 
        of the enactment of this section.
            (2) Special payment amount.--The term ``special payment 
        amount'' means, for a State, the amount determined by 
        multiplying--
                    (A) 76 percent; by
                    (B) the annual average of the 25-percent payments 
                to States made to the State during the 5-year period 
                consisting of fiscal years 1986 through 1990, adjusted 
                for each fiscal year after fiscal year 2004 to reflect 
                changes in the consumer price index for urban areas (as 
                published by the Bureau of Labor Statistics) that occur 
                after publication of that index for fiscal year 2003.

SEC. 3. SHARING OF BUREAU OF LAND MANAGEMENT TIMBER SALE RECEIPTS.

    (a) Payments.--
            (1) Fiscal years 1999 through 2003.--In lieu of making the 
        50-percent payments to counties for each of fiscal years 1998 
        through 2003, the Secretary of the Treasury shall pay to each 
        county that is otherwise eligible to receive those payments the 
        special payment amount determined for that county.
            (2) Fiscal years after fiscal year 2003.--
                    (A) In general.--For each fiscal year after fiscal 
                year 2003, the Secretary of the Treasury shall pay to 
                each county that is otherwise eligible to receive the 
                50-percent payments to counties, as elected by the 
                county, either--
                            (i) the special payment amount, in lieu of 
                        the 50-percent payments to counties otherwise 
                        applicable and allocable to that county; or
                            (ii) the share of the 50-percent payments 
                        to counties otherwise applicable and allocable 
                        to the county.
                    (B) Election.--The election under subparagraph (A) 
                shall be made by the chief executive officer of a 
                county, for all fiscal years after fiscal year 2003, by 
                not later than 5 years after the date of the enactment 
                of this Act. If the chief executive officer of a county 
                fails to make the election by that date, the county is 
                deemed to have elected the payment described in 
                subparagraph (A)(i).
    (b) Definitions.--As used in this section:
            (1) 50-percent payments to counties.--The term ``50-percent 
        payments to counties'' means the sum of the 50-percent share 
        otherwise paid to a county 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.), as in effect immediately before the date of the 
        enactment of this section.
            (2) Special payment amount.--The term ``special payment 
        amount'' means the amount determined by multiplying--
                    (A) 76 percent; by
                    (B) the annual average of the 50-percent payments 
                to counties made to a county during the 5-year period 
                consisting of fiscal years 1986 through 1990, adjusted 
                for each fiscal year after fiscal year 2004 to reflect 
                changes in the consumer price index for urban areas (as 
                published by the Bureau of Labor Statistics) that occur 
                after publication of that index for fiscal year 2003.

SEC. 4. CONFORMING AMENDMENT.

    Title XIII of the Omnibus Budget Reconciliation Act of 1993 (Public 
Law 103-66) is amended by striking chapter 4 (107 Stat. 681-682).
Timber-Dependent Counties Stabilization Act of 1998 - Revises the existing rate for State sharing of Forest Service and Bureau of Land Management timber sale receipts through a specified date, and permits States to choose either rate after such date. 
Makes a conforming amendment to the Omnibus Budget Reconciliation Act of 1993.
Timber-Dependent Counties Stabilization Act of 1998