A bill to transfer land administered by the Bureau of Land Management to the States in which the land is located.

Requires the Secretary of the Interior to offer to transfer all right, title, and interest of the United States (including fee simple interest and mineral and water rights) in lands administered by the Bureau of Land Management (BLM) to the State in which such land and interests are located. (Excludes mineral interests underlying a surface estate held in trust by the United States for an Indian tribe which interests shall be transferred from the BLM administrative jurisdiction to be held in trust for the Indian tribe for which the overlying surface estate is held in trust.)

Permits a State to accept an offer only in its entirety. Makes such a land transfer effective ten years after a State accepts the offer. Restricts conveyance of such lands by a State.

(Sec. 3) Requires a State to honor valid existing leases and permits on such lands and to manage the land in accordance with other terms and conditions of such leases and permits.

Provides that, except for mining claims for which the holder is entitled to a patent as provided by this Act and under specified conditions, after the date on which land subject to a mining claim is transferred to a State, the validity and continued existence of such claim shall be determined under the law of the State to which the land was transferred and shall be administered in accordance with such State law.

Requires a State to which land is transferred to respect a right- of-way granted by the United States on the land in accordance with the terms and conditions of the right-of-way.

(Sec. 4) Requires transferred land: (1) that has been designated by an Act of Congress as wilderness to be managed by the State as wilderness in accordance with the requirements of Federal laws that specifically provide for its management; (2) that is, on the date of transfer, subject to use for military purposes to continue to be subject to the same military uses; and (3) to continue to provide for the public access provided on the date of transfer.

Sets forth provisions relating to the transfer of water rights on the transferred land.

Limits BLM obligations and expenditures to $800 million beginning with the fiscal year in which this Act is enacted.

Requires the Secretary to give priority to expending amounts available to the BLM for land management activities and carrying out this Act.