1. Short title This Act may be cited as the Lake Access Keeping Economies Strong Act or the LAKES Act . 2. Challenge cost-sharing program for management of recreation facilities Section 225 of the Water Resources Development Act of 1992 ( 33 U.S.C. 2328 ) is amended— (1) by redesignating subsections (a) through (d) as subsections (b) through (e), respectively; (2) by inserting before subsection (b) (as so redesignated) the following: (a) Definitions In this section: (1) Non-Federal public entity The term non-Federal public entity means a non-Federal public entity as defined in the document of the Corps of Engineers entitled Implementation Guidance for Section 1155 of the Water Resources Development Act of 2016 (WRDA 2016), Management of Recreation Facilities and dated April 4, 2018. (2) Private nonprofit entity The term private nonprofit entity means an organization that is described in section 501(c) of the Internal Revenue Code of 1986 and exempt from taxation under section 501(a) of that Code. ; (3) in subsection (b) (as so redesignated), by striking In general and inserting Authorization ; (4) in subsection (c) (as so redesignated)— (A) by striking To implement and inserting the following: (1) In general To implement ; (B) by striking non-Federal public and private entities and inserting non-Federal public entities and private nonprofit entities ; and (C) by adding at the end the following: (2) Requirements Before entering into an agreement under paragraph (1), the Secretary shall ensure that the non-Federal public entity or private nonprofit entity has the authority and capability— (A) to carry out the terms of the agreement; and (B) to pay damages, if necessary, in the event of a failure to perform.