A bill to amend the Land and Water Conservation Fund Act of 1965, as amended.

Changes the formula, under the Land and Water Conservation Fund Act, for the apportionment to states of funds under the Act to the following: (1) Twenty percent shall be apportioned equally among the several states; (2) Seventy-five percent shall be apportioned on the basis of need to individual states by the Secretary of the Interior in such amounts as in his judgment will best accomplish the purposes of the act; and (3) Five percent shall be made available to individual states to meet special or emergency needs, as determined by the Secretary.

Increases to ten percent the percentage of the entire fund that may be allocated to one state in any one year. Provides that a state plan for aid under the Act must provide an evaluation of the future demand for and supply of outdoor recreation resources and facilities in the State.

Provides that the Secretary shall annually review each State's program to implement the statewide outdoor recreation plan and shall withhold payments to any State until he is satisfied that the State has taken appropriate action toward insuring that new recreation areas and facilities are being located to satisfy the highest priority unmet demands for recreation especially in and near cities.

Requires the Secretary to annually review each State's program to implement the statewide outdoor recreation plan and to withhold payments to any State until he is satisfied that the State has taken appropriate action (1) toward insuring that new recreation areas and facilities are being located to satisfy the highest priority unmet demands for recreation, especially in and near cities, particularly with respect to the resources that have been acquired or developed with funds apportioned to the State. (2) to consider preservation of small natural areas, especially near cities; (3) to consider preservation of scenic areas through the acquisition of development rights, scenic easements, and other less-than-fee interests in lands or waters; and (4) to provide for appropriate multiple use of existing public lands, waters, and facilities, to help satisfy unmet demands for recreation resources.