A bill to authorize the Secretary of the Interior to transfer title to certain project lands acquired for the Palmetto Bend Project, Texas, and for other purposes.

Authorizes the Secretary of the Interior to transfer to the Lavaca-Navidad River Authority of Texas all right, title, and interest of the United States in up to 1,000 acres of the Palmetto Bend Federal reclamation project for specified consideration.

Prohibits the Authority from disposing of such lands except by long-term lease agreement. Prohibits the construction or location of habitable structures below the elevation of mean sea level on such property. Conditions the transfer under this Act on the Authority's agreement to use proceeds derived from the development of such lands to pay the non-Federal cost of public recreation facilities at the reclamation project and toward the payment of the recreation and operation, maintenance, and replacement costs of such project.

Requires the Authority to guarantee the quality of Lake Texana's water and to secure Federal and State permits for waste water discharge.

Reserves certain rights to the United States, including: (1) the right to review all development plans of the Authority; (2) the right to flood the transferred lands; and (3) all mineral rights of such lands.