Palmetto Bend Conveyance Act

Palmetto Bend Conveyance Act - Directs the Secretary of the Interior to convey the Palmetto Bend Reclamation Project in Texas (excluding the mineral estate) to the State of Texas, acting through the Texas Water Development Board or the Lavaca-Navidad River Authority.

Requires the Secretary, if the conveyance has not been completed within one year and 180 days after the enactment date of this Act, to report to the House Committee on Resources and the Senate Committee on Energy and Natural Resources on the conveyance's status, any obstacles to completion, and the anticipated completion date.

Directs the State, as a condition of the conveyance, to pay to the Secretary the adjusted net present value of current repayment obligations on the Project as prescribed by this Act. Requires the State to also pay interest on the adjusted net present value of such obligations from the date of the State's most recent annual payment until closing at the interest rate for constant maturity U.S. Treasury notes of an equivalent term. Extinguishes the State's and the Bureau of Reclamation's obligation under a specified Bureau contract upon payment by the State of such amount. Requires the State, after completion of the conveyance, to assume full responsibility for all aspects of operation, maintenance, and replacement of the Project.

Requires the State, as a condition of the conveyance, to agree that the lands, water, and facilities of the Project shall continue to be managed and operated for the purposes for which the Project was originally authorized; that is, to provide a dependable municipal and industrial water supply, to conserve and develop fish and wildlife resources, and to enhance recreational opportunities. Requires the State, in future management of the Project, consistent with other project purposes and the provision of such a water supply, to: (1) provide full public access to the Project's lands, subject to reasonable restrictions for purposes of Project security, public safety, and natural resource protection; (2) not sell or otherwise dispose of the lands conveyed under this Act; (3) prohibit private or exclusive uses of such lands; (4) maintain and manage the Project's fish and wildlife resource and habitat for the benefit and enhancement of those resources; (5) maintain and manage the Project's existing recreational facilities and assets, including open space for the benefit of the public; and (6) not charge the public recreational use fees that are more than is customary and reasonable.

Provides that, as a condition of the conveyance, management decisions and actions affecting the Project's public aspects (namely fish, wildlife, and recreation resources) shall: (1) be conducted according to a management agreement between all recipients of title to the Project and the Texas Parks and Wildlife Department that has been approved by the Secretary; and (2) extend for the useful life of the Project.

Requires all mineral interests in the Project retained by the United States to be managed consistent with Federal law and in a manner that will not interfere with the purposes for which the Project was authorized.

States that nothing in this Act increases the liability of the United States beyond that provided for in the Federal Tort Claims Act.

Deauthorizes the Project on the date of its conveyance. Specifies that the State shall not be entitled to receive any benefits for the Project after deauthorization.