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Land Entity White Paper <br />November 30, 1999 <br />• Federal•regulations prohibit persons who would personally benefit <br />from being part of thc decision-making process in entities that are <br />to receive gavernment funds. <br />• Federal regulations are designed to avoid having a non-profit ar <br />state or locai government benefit from receiving federal funds <br />beyand the direct benefit intended by the grant or agreement. For <br />that reason, entities receiving federal funds generally cannot apply <br />them to administrative costs of the organization or invest them to <br />earn interest during the periad between receiving the federal funds <br />and disbursing them far their intended use. <br />• Real properry acquisition using federal ar state funds is subject to <br />govemment appraisal, <br />• If land is later sald, either the government must be repaid its share <br />of fair market value less selling expenses, or title rnust transfer to <br />the federal govemment in exchange fvr compensation <br />proportionate to the federal contribution to the fair market vatue of <br />the praperty, or another acceptable arrangement has to be worked <br />aut that involves the land continuing to serve the government's <br />purpose <br />G Constrairtts on Creation of a New Entity <br />Under 31 U.S,C. Sec. 9701, federal agencies cannot create a corporation to carry <br />aut their finnctions: Where creatian of a new Land Entity is one option contemplated, <br />DOI could be viewed as heiping to create an entity to carry oat its functions. If a new <br />entity with substantial responsibiIities is to be created, Congress will need to authorize it. <br />Selecting an existing organization as Land Entity would, of course, pose no problems. <br />D. Cunslraints of the ESA <br />The Cooperative Agreement and proposed Program have taken great care not to <br />compxomise the obIigarion of the U. S. Fish and Wildlife Service to determine and from <br />time to time to confirm that the Frogram is serving as a reasanable and prurient <br />alternative and avoiding jeopardy to the Program's target species. The Governance <br />Committee does not have the authority to override FWS, and thus it cannot delegate that <br />authority or contract it away. A Land Entity with bylaws or a charter that attempted to <br />ovemde FWS's authority, could not be funded.