A bill to amend sections 10 and 11 of the Act of October 21, 1970 (P.L. 91-479; 16 U.S.C. 460X), entitled "An Act to establish in the State of Michigan the Sleeping Bear Dunes National Lakeshore, and for other purposes".

Amends Federal law establishing the Sleeping Bear Dunes National Lakeshore in Michigan to permit a lawful occupier of improved property, already acquired by the United States and located in the area to be included in the lakeshore, to retain the right of use or occupancy of such property for any residential purpose not detrimental to the lakeshore area for a term of 25 years or less or a term ending on the death of such occupier. Requires the owner or occupier of such property to notify the Secretary of the Interior of any intention to exercise such option within 60 days after receiving notice of his or her option to retain such rights to such property.

Requires the Secretary to pay the owner of improved property, not yet acquired for inclusion in the lakeshore, the value of the property on the date of acquisition, less the value of any right retained by the owner pursuant to this Act. Provides that the occupier of improved property, already acquired for inclusion in the lakeshore, shall pay to the Secretary the value of any right retained pursuant to this Act, based on the value of the property at the time of acquisition. Permits an owner or an occupier of such property who retains a right of use and occupancy to convey or lease such right during its existence to a member of his or her immediate family for noncommercial residential purposes not detrimental to the lakeshore area. Permits such an owner or occupier to terminate such right at any time. Requires the Secretary to pay to the owner of the right terminated an amount equal to the value of the portion of the right which remains unexpired upon the date of termination.

Includes within the definition of "improved property" a detached, one-family dwelling, construction of which was begun on or after December 31, 1964, and before October 21, 1970, and which has been openly and continuously used, at least during the summer months of each year, for residential purposes since construction was completed. Authorizes the Secretary to exclude such a dwelling from the category of "improved property" if it is in an area required for public use or development in the immediate future. Permits the Secretary to terminate a right of use and occupancy with respect to any such dwelling in an area required for public use or development. Requires the Secretary to pay the owner of the right terminated an amount equal to the value of the portion of the right which remains unexpired upon the date of termination. Sets forth the notification procedures which the Secretary must follow with respect to improved property for which an option to retain rights of use and occupancy exists.

Extends the Secretary's authority over scenic roads to roads lying within Benzie County. (Currently, the Secretary's authority extends to roads within a designated parkway zone within the boundaries of the lakeshore.)

Provides that federally owned lands in Leelanau County which are within the designated parkway zone but which are not within, or contiguous to, the lakeshore zone may be exchanged by the Secretary for other lands of approximately equal value in the lakeshore or offered for sale first to the previous owner and then to any buyer.

Authorizes the Secretary to obtain and administer as part of the lakeshore and as Resource Preservation Areas the following lands: (1) Miller Hill; and (2) Bow Lakes. Sets forth the methods by which the Secretary may obtain fee title or lesser interests in such lands. Requires the Secretary to work with State and local government officials to protect the scenic and natural resources of such lands.

Authorizes the inclusion in the lakeshore of the area designated as "the Kettle" in the General Management Plan dated October 1979, if the owner of such area agrees to donate fee title to, or a scenic easement or other interest in, such area.

Authorizes the Secretary to provide services such as road maintenance, subject to reimbursement, upon request by any owner or occupier of lands in the lakeshore.

Increases the authorization of appropriations for land acquisition for the lakeshore.

Requires the President, no later than June 1, 1983, to make recommendations to Congress with respect to the suitability of any area in the lakeshore for designation as wilderness. Provides for areas in the lakeshore already recommended for wilderness designations and for areas recommended as potential wilderness additions to be administered so as to maintain their existing wilderness character.

Requires that revenues for services provided or from payments for property rights retained under this Act be credited to a separate account in the Treasury. Makes funds from such account available to the Secretary for land acquisition, purchase of remaining terms of retained rights, or site restoration.