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~' - v j "t'-Vv-"'" .v__ U00229 ANALYS IS OF PROPOSED REPAT1,ffiNT LEGISLATION Tho draft of tho proposed permanent ropayment bill, transmitted by the Secretary of tho Interior to tho Congress with his recommendatien, is based in part on recommendations of the Repayment Commission of 1937-38 (House Documont No. 67" 75th Congress, 3rd session) and other considerations advanced by irrigation interests in the West. It provides a feasible and comprohensive plan for the variable payment of construction charges on United States reclrunation projects and protects the investment of the United States. In many respects it liberalizos provisions of existing repayment legislation. MD,jor objectlves of the bill aro (1) authority for modifying existi.ng contracts under an equitable and flexible plan for sliding scale paymont of construction oharges in accordance with variations in crop roturns; (2) arrangements for payments at timos when crop receipts are availablo; (3) classification or roclassification of lands on existing projects; (4) special consideration for projects vdth unusual problems affecting ability to repay; (5) mothods for determining feasibility of proposed new projects, for allocation of costs, and for their dovelopment. INDIAN PROJECTS NOT AFFECTED BY BILL Provision is made for projects having contracts with definite periods of repayment as well as for those under the Fact-Finders Aot of 1924, ,rith repayment based on crop returns. Indian irrigation projocts are not affected by the bill, as it was felt that tho ropayment problems of those Fedoral undertakings are adequately providod for by existing legislation rolating to Indian projects. Without shortoning to forty yoars tho ropaymont period of Fact-Finders' Act projocts, tho basic period of forty years for repaymont of construction charges is reaffirmed. Costs ef irrigation en now projocts are to be spread in ferty annual installments, with ot' without variation of the installments under a "normal and porcentages" pIon. EXPLAlUTION OF BILL BY SECTIONS Soctions 1 and 2 sot f'orth D. statomont of' the chiof' purposos of the bill and state definitions of' terms used. The term "projoct" covers every crganization having a repayment contract executed vdth tho United States pursuant to acts of Congress; "construction charge" moans tho installments of principal obligations due and payable each year; "organization" means such district or othor organization as is empowered to entor into contracts with the United States under tho reclamation laws; and "irrigation block" is a now torm and is' intondod to provido for the devolopment of now projects ovor a period of yoars through tho dovolopmont of 0. cortain portion or block within a givon numbor of yoars and other blocks to como in at n later poried.