[Congressional Bills 109th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4322 Introduced in House (IH)]
109th CONGRESS
1st Session
H. R. 4322
To provide for Indian trust asset management reform and resolution of
historical accounting claims, and for other purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
November 15, 2005
Mr. Pombo (for himself and Mr. Rahall) introduced the following bill;
which was referred to the Committee on Resources
_______________________________________________________________________
A BILL
To provide for Indian trust asset management reform and resolution of
historical accounting claims, and for other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE; TABLE OF CONTENTS.
(a) Short Title.--This Act may be cited as the ``Indian Trust
Reform Act of 2005''.
(b) Table of Contents.--The table of contents for this Act is as
follows:
Sec. 1. Short title; table of contents.
TITLE I--SETTLEMENT OF LITIGATION CLAIMS
Sec. 101. Findings.
Sec. 102. Definitions.
Sec. 103. Individual Indian Accounting Claim Settlement Fund.
Sec. 104. General distribution.
Sec. 105. Claims relating to share determination.
Sec. 106. Claims relating to method of valuation.
Sec. 107. Claims relating to constitutionality.
Sec. 108. Attorneys' fees.
Sec. 109. Waiver and release of claims.
Sec. 110. Effect of title.
TITLE II--INDIAN TRUST ASSET MANAGEMENT POLICY REVIEW COMMISSION
Sec. 201. Establishment.
Sec. 202. Membership.
Sec. 203. Meetings and procedures.
Sec. 204. Duties.
Sec. 205. Powers.
Sec. 206. Commission personnel matters.
Sec. 207. Exemption from FACA.
Sec. 208. Authorization of appropriations.
Sec. 209. Termination of Commission.
TITLE III--INDIAN TRUST ASSET MANAGEMENT DEMONSTRATION PROJECT ACT
Sec. 301. Short title.
Sec. 302. Definitions.
Sec. 303. Establishment of demonstration project; selection of
participating Indian tribes.
Sec. 304. Indian trust asset management plan.
Sec. 305. Effect of title.
TITLE IV--FRACTIONAL INTEREST PURCHASE AND CONSOLIDATION PROGRAM
Sec. 401. Fractional interest program.
TITLE V--RESTRUCTURING BUREAU OF INDIAN AFFAIRS AND OFFICE OF SPECIAL
TRUSTEE
Sec. 501. Purpose.
Sec. 502. Definitions.
Sec. 503. Under Secretary for Indian Affairs.
Sec. 504. Transfer of functions of Assistant Secretary for Indian
Affairs.
Sec. 505. Office of Special Trustee for American Indians.
Sec. 506. Hiring preference.
Sec. 507. Authorization of appropriations.
TITLE VI--AUDIT OF INDIAN TRUST FUNDS
Sec. 601. Audits and reports.
Sec. 602. Authorization of appropriations.
TITLE I--SETTLEMENT OF LITIGATION CLAIMS
SEC. 101. FINDINGS.
Congress finds that--
(1) Congress has appropriated tens of millions of dollars
for purposes of providing an historical accounting of funds
held in Individual Indian Money accounts;
(2) as of the date of enactment of this Act, the efforts of
the Federal Government in conducting historical accounting
activities have provided information regarding the feasibility
and cost of providing a complete historical accounting of IIM
account funds;
(3) in the case of many IIM accounts, a complete historical
accounting--
(A) may be impossible because necessary records and
accounting data are missing or destroyed;
(B) may take several years to perform even if
necessary records are available;
(C) may cost the United States hundreds of millions
and possibly several billion dollars; and
(D) may be impossible to complete before the deaths
of many elderly IIM account beneficiaries;
(4) without a complete historical accounting, it may be
difficult or impossible to ascertain the extent of losses in an
IIM account as a result of accounting errors or mismanagement
of funds, or the correct amount of interest accrued or owned on
the IIM account;
(5) the total cost to the United States of providing a
complete historical accounting of an IIM account may exceed--
(A) the current balance of the IIM account;
(B) the total sums of money that have passed
through the IIM account; and
(C) the enforceable liability of the United States
for losses from, and interest in, the IIM account;
(6)(A) the delays in obtaining an accounting and in
pursuing accounting claims in the case styled Cobell v. Norton,
Civil Action No. 96-1285 (RCL) in the United States District
Court for the District of Columbia, have created a great
hardship on IIM account beneficiaries; and
(B) many beneficiaries and their representatives have
indicated that they would rather receive monetary compensation
than experience the continued frustration and delay associated
with an accounting of transactions and funds in their IIM
accounts;
(7) it is appropriate for Congress, taking into
consideration the findings under paragraphs (1) through (6), to
provide benefits that are reasonably calculated to be fair and
appropriate in lieu of performing an accounting of an IIM
account, or assuming liability for errors in such an
accounting, mismanagement of IIM account funds (including
undetermined amounts of interest in IIM accounts, losses in
which may never be discovered or quantified if a complete
historical accounting cannot be performed), or breach of
fiduciary duties with respect to the administration of IIM
accounts, in order to transmute claims by the beneficiaries of
IIM accounts for undetermined or unquantified accounting losses
and interest to a fixed amount to be distributed to the
beneficiaries of IIM accounts;
(8) in determining the amount of the payments to be
distributed as described in paragraph (7), Congress should take
into consideration, in addition to the factors described in
paragraphs (1) through (6)--
(A) the risks and costs to IIM account
beneficiaries, as well as any delay, associated with
the litigation of claims that will be resolved by this
title; and
(B) the benefits to IIM account beneficiaries
available under this title;
(9) the situation of the Osage Nation is unique because,
among other things, income from the mineral estate of the Osage
Nation is distributed to individuals through headright
interests that belong not only to members of the Osage Nation,
but also to members of other Indian tribes, and to non-Indians;
and
(10) due to the unique situation of the Osage Nation, the
Osage Nation, on its own behalf, has filed various actions in
Federal district court and the United States Court of Federal
Claims seeking accountings, money damages, and other legal and
equitable relief
SEC. 102. DEFINITIONS.
In this title:
(1) Accounting claim.--The term ``accounting claim'' means
any claim for an historical accounting of a claimant against
the United States under the Litigation.
(2) Claimant.--The term ``claimant'' means any beneficiary
of an IIM account (including an heir of such a beneficiary)
that was living on the date of enactment of the American Indian
Trust Fund Management Reform Act of 1994 (25 U.S.C. 4001 et
seq.).
(3) IIM account.--The term ``IIM account'' means an
Individual Indian Money account administered by the Bureau of
Indian Affairs.
(4) Litigation.--The term ``Litigation'' means the case
styled Cobell v. Norton, Civil Action No. 96-1285 (RCL) in the
United States District Court for the District of Columbia.
(5) Secretary.--The term ``Secretary'' means the Secretary
of the Treasury.
(6) Settlement fund.--The term ``Settlement Fund'' means
the fund established by section 103(a).
(7) Special master.--The term ``Special Master'' means the
special master appointed by the Secretary under section 103(b)
to administer the Settlement Fund.
SEC. 103. INDIVIDUAL INDIAN ACCOUNTING CLAIM SETTLEMENT FUND.
(a) Establishment.--
(1) In general.--There is established in the general fund
of the Treasury a fund, to be known as the ``Individual Indian
Accounting Claim Settlement Fund''.
(2) Initial deposit.--The Secretary shall deposit into the
Settlement Fund to carry out this title not less than
$[__________],000,000,000 from funds appropriated under section
1304 of title 31, United States Code.
(b) Special Master.--As soon as practicable after the date of
enactment of this Act, the Secretary shall appoint a Special Master to
administer the Settlement Fund in accordance with this title.
(c) Distribution.--
(1) In general.--The Special Master shall use not less than
80 percent of amounts in the Settlement Fund to make payments
to claimants in accordance with section 104.
(2) Method of valuation and constitutional claims.--The
Special Master may use not to exceed 12 percent of amounts in
the Settlement Fund to make payments to claimants described
in--
(A) section 106; or
(B) section 107.
(3) Attorneys' fees.--The Special Master may use not to
exceed [__________]percent of amounts in the Settlement Fund to
make payments to claimants for attorneys' fees in accordance
with section 108.
(d) Costs of Administration.--The Secretary may use not more than
[__________]percent of amounts in the Settlement Fund to pay the costs
of--
(1) administering the Settlement Fund; and
(2) otherwise carrying out this title.
SEC. 104. GENERAL DISTRIBUTION.
(a) Payments to Claimants.--
(1) In general.--Not later than 1 year after the date on
which the Secretary publishes in the Federal Register the
regulations described in subsection (d), the Special Master
shall distribute to each claimant from the Settlement Fund an
amount equal to the sum of--
(A) the per capita share of the claimant of
$[__________],000,000,000 of the amounts described in
section 103(c)(1); and
(B) of $[__________],000,000,000 of the amounts
described in section 103(c)(1), the additional share of
the claimant, to be determined in accordance with a
formula established by the Secretary under subsection
(d)(1).
(2) Heirs of claimants.--
(A) In general.--An heir of a claimant shall
receive the entire amount distributed to the claimant
under paragraphs (1) and (3).
(B) Multiple heirs.--If a claimant has more than 1
heir, the amount distributed to the claimant under
paragraphs (1) and (3) shall be divided equally among
the heirs of the claimant.
(3) Residual amounts.--After making each distribution
required under sections 106, 107, and 108, the Special Master
shall distribute to claimants the remainder of the amounts
described in paragraphs (2) and (3) of section 103(c), in
accordance with paragraph (1)(B).
(b) Requirement for Distribution.--The Special Master shall not
make a distribution to a claimant under subsection (a) until the
claimant executes a waiver and release of accounting claims against the
United States in accordance with section 109.
(c) Location of Claimants.--
(1) Responsibility of secretary of the interior.--The
Secretary of the Interior shall provide to the Special Master
any information, including IIM account information, that the
Special Master determines to be necessary to--
(A) identify any claimant under this title; or
(B) apply a formula established by the Secretary
under subsection (d).
(2) Claimants of unknown location.--
(A) In general.--The Special Master shall deposit
in an account, for future distribution, amounts under
this title for each claimant who--
(i) is entitled to receive a distribution
under this title, as determined by the Special
Master; and
(ii) has not been located by the Special
Master as of the date on which a distribution
is required under subsection (a)(1).
(B) Location of claimants.--
(i) Responsibility of secretary of the
interior.--The Secretary of the Interior shall
provide to the Special Master any information
and assistance necessary to locate a claimant
described in subparagraph (A)(ii).
(ii) Contracts.--The Special Master may
enter into contracts with an Indian tribe or an
organization representing individual Indians in
order to locate a claimant described in
subparagraph (A)(ii).
(d) Regulations.--
(1) In general.--The Secretary shall promulgate any
regulations that the Secretary determines to be necessary to
carry out this title, including regulations establishing a
formula to determine the share of each claimant of payments
under subsection (a)(1).
(2) Factors for consideration.--In developing the formula
described in paragraph (1), the Secretary shall take into
consideration the amount of funds that have passed through the
IIM account of each claimant during the period beginning on
January 1, 1980, and ending on December 31, 2005, or another
period, as the Secretary determines to be appropriate.
SEC. 105. CLAIMS RELATING TO SHARE DETERMINATION.
(a) In General.--Subject to subsection (b), any claimant may seek
judicial review of the determination of the Special Master with respect
to the amount of a share payment of a claimant under section 104(a)(1).
(b) Requirements.--A claimant shall file a claim under subsection
(a)--
(1) not later than 180 days after the date of receipt of a
notice by the claimant under subsection (c); and
(2) in the United States district court for the district in
which the claimant resides.
(c) Notice.--The Secretary shall provide to each claimant a notice
of the right of any claimant to seek judicial review of a determination
of the Special Master with respect to the amount of the share payment
of the claimant under section 105.
(d) Subsequent Appeals.--A claim relating to a determination of a
United States district court relating to an appeal under subsection (a)
shall be filed only in the United States Court of Appeals for the
District of Columbia.
SEC. 106. CLAIMS RELATING TO METHOD OF VALUATION.
(a) In General.--Not later than 1 year after the date of enactment
of this Act, a claimant may seek judicial review of the method of
distribution of a payment to the claimant under section 104(a).
(b) Requirements.--A claim under subsection (a)--
(1) shall not be filed as part of a class action claim
against any party; and
(2) shall be filed only in the United States Court of
Federal Claims.
(c) Available Amounts.--
(1) In general.--The Special Master shall use only amounts
described in section 103(c)(2)(A) to satisfy an award under a
claim under this section.
(2) Payments to claimants.--A claimant that files a claim
under this subsection shall not be eligible to receive a
distribution under section 104(a).
(d) Effect of Claim.--The filing of a claim under this section
shall be considered to be a waiver by the claimant of any right to an
award under section 104.
SEC. 107. CLAIMS RELATING TO CONSTITUTIONALITY.
(a) In General.--Any claimant may seek judicial review in the
United States District Court for the District of Columbia of the
constitutionality of the application of this title to an individual
claimant.
(b) Procedure.--
(1) Judicial panel.--A claim under this section shall be
determined by a panel of 3 judges, to be appointed by the chief
judge of the United States District Court for the District of
Columbia.
(2) Consolidation of claims.--
(A) In general.--The judicial panel may consolidate
claims under this section, as the judicial panel
determines to be appropriate.
(B) Prohibition of class action cases.--A claim
under this section shall not be filed as part of a
class action claim against any party.
(3) Determination.--The judicial panel may award a claimant
such relief as the judicial panel determines to be appropriate,
including monetary compensation.
(c) Available Amounts.--
(1) In general.--The Special Master shall use only amounts
described in section 103(c)(2)(B) to satisfy an award under a
claim under this section.
(2) Payments to claimants.--A claimant that files a claim
under this subsection shall not be eligible to receive a
distribution under section 104(a).
(d) Effect of Claim.--The filing of a claim under this section
shall be considered to be a waiver by the claimant of any right to an
award under section 104.
SEC. 108. ATTORNEYS' FEES.
(a) In General.--The Special Master may use amounts described in
section 103(c)(3) to make payments to claimants for costs and
attorneys' fees incurred under the Litigation before the date of
enactment of this Act, or in connection with a claim under section 104,
at a rate not to exceed $[__________] per hour.
(b) Requirements.--
(1) In general.--The Special Master may make a payment
under subsection (a) only if, as of the date on which the
Special Master makes the payment, the applicable costs and
attorneys' fees have not been paid by the United States
pursuant to a court order.
(2) Action by attorneys.--To receive a payment under
subsection (a), an attorney of the claimant shall submit to the
Special Master a written claim for costs or fees under the
Litigation.
SEC. 109. WAIVER AND RELEASE OF CLAIMS.
(a) In General.--In order to receive an award under this title, a
claimant shall execute and submit to the Special Master a waiver and
release of claims under this section.
(b) Contents.--A waiver and release under subsection (a) shall
contain a statement that the claimant waives and releases the United
States (including any officer, official, employee, or contractor of the
United States) from any legal or equitable claim under Federal, State,
or other law (including common law) relating to any accounting of funds
in the IIM account of the claimant on or before the date of enactment
of this Act.
SEC. 110. EFFECT OF TITLE.
(a) Substitution of Benefits.--
(1) In general.--The benefits provided under this title
shall be considered to be provided in lieu of any claims under
Federal, State, or other law originating before the date of
enactment of this Act for--
(A) losses as a result of accounting errors
relating to funds in an IIM account;
(B) mismanagement of funds in an IIM account; or
(C) interest accrued or owed in connection with
funds in an IIM account.
(2) Limitation of claims.--Except as provided in this
title, and notwithstanding any other provision of law, a
claimant shall not maintain an action in any Federal, State, or
other court for an accounting claim originating before the date
of enactment of this Act.
(3) Jurisdiction of courts.--
(A) In general.--Except as otherwise provided in
this title, no court shall have jurisdiction over a
claim filed by an individual or group for the
historical accounting of funds in an IIM account on or
before the date of enactment of this Act, including any
such claim that is pending on the date of enactment of
this Act.
(B) Limitation.--This paragraph does not prevent a
court from ordering an accounting in connection with an
action relating to the mismanagement of trust resources
that are not funds in an IIM account on or before the
date of enactment of this Act.
(b) Acceptance as Waiver.--The acceptance by a claimant of a
benefit under this title shall be considered to be a waiver by the
claimant of any accounting claim that the claimant has or may have
relating to the IIM account of the claimant.
(c) Receipt of Payments Have No Impact on Benefits Under Other
Federal Programs.--The receipt of a payment by a claimant under this
title shall not be--
(1) subject to Federal or State income tax; or
(2) treated as benefits or otherwise taken into account in
determining the eligibility of the claimant for, or the amount
of benefits under, any other Federal program, including the
social security program, the medicare program, the medicaid
program, the State children's health insurance program, the
food stamp program, or the Temporary Assistance for Needy
Families program.
(d) Certain Claims.--Nothing in this title precludes any court from
granting any legal or equitable relief in an action by an Indian tribe
or Indian nation against the United States, or an officer of the United
States, filed or pending on or before the date of enactment of this
Act, seeking an accounting, money damages, or any other relief relating
to a tribal trust account or trust asset or resource.
TITLE II--INDIAN TRUST ASSET MANAGEMENT POLICY REVIEW COMMISSION
SEC. 201. ESTABLISHMENT.
There is established a commission, to be known as the ``Indian
Trust Asset Management Policy Review Commission,'' (referred to in this
title as the ``Commission''), for the purposes of--
(1) reviewing trust asset management laws (including
regulations) in existence on the date of enactment of this Act
governing the management and administration of individual
Indian and Indian tribal trust assets;
(2) reviewing the management and administration practices
of the Department of the Interior with respect to individual
Indian and Indian tribal trust assets; and
(3) making recommendations to the Secretary of the Interior
and Congress for improving those laws and practices.
SEC. 202. MEMBERSHIP.
(a) In General.--The Commission shall be composed of 12 members, of
whom--
(1) 4 shall be appointed by the President;
(2) 2 shall be appointed by the Majority Leader of the
Senate;
(3) 2 shall be appointed by the Minority Leader of the
Senate;
(4) 2 shall be appointed by the Speaker of the House of
Representatives; and
(5) 2 shall be appointed by the Minority Leader of the
House of Representatives.
(b) Qualifications.--The membership of the Commission shall
include--
(1) at least 6 members who are representatives of federally
recognized Indian tribes with reservation land or other trust
land that is managed for--
(A) grazing;
(B) fishing; or
(C) crop, timber, mineral, or other resource
production purposes;
(2) at least 1 member (including any member described in
paragraph (1)) who is or has been the beneficial owner of an
individual Indian monies account; and
(3) at least 4 members who have experience in--
(A) Indian trust resource (excluding a financial
resource) management;
(B) fiduciary investment management;
(C) financial asset management; and
(D) Federal law and policy relating to Indians.
(c) Date of Appointments.--
(1) In general.--The appointment of a member of the
Commission shall be made not later than 90 days after the date
of enactment of this Act.
(2) Failures to appoint.--A failure to make an appointment
in accordance with paragraph (1) shall not affect the powers or
duties of the Commission if sufficient members are appointed to
establish a quorum.
(d) Term; Vacancies.--
(1) Term.--A member shall be appointed for the life of the
Commission.
(2) Vacancies.--A vacancy on the Commission--
(A) shall not affect the powers or duties of the
Commission; and
(B) shall be filled in the same manner as the
original appointment was made.
SEC. 203. MEETINGS AND PROCEDURES.
(a) Initial Meeting.--Not later than 150 days after the date of
enactment of this Act, the Commission shall hold the initial meeting of
the Commission to--
(1) elect a Chairperson; and
(2) establish procedures for the conduct of business of the
Commission, including public hearings.
(b) Subsequent Meetings.--The Commission shall meet at the call of
the Chairperson.
(c) Quorum.--7 members of the Commission shall constitute a quorum,
but a lesser number of members may hold hearings.
(d) Chairperson.--The Commission shall elect a Chairperson from
among the members of the Commission.
SEC. 204. DUTIES.
(a) Reviews and Assessments.--The Commission shall review and
assess--
(1) Federal laws (including regulations) applicable or
relating to the management and administration of Indian trust
assets; and
(2) the practices of the Department of the Interior
relating to the management and administration of Indian trust
assets.
(b) Consultation.--In conducting the reviews and assessments under
subsection (a), the Commission shall consult with--
(1) the Secretary of the Interior;
(2) federally recognized Indian tribes; and
(3) organizations that represent the interests of
individual owners of Indian trust assets.
(c) Recommendations.--After conducting the reviews and assessments
under subsection (a), the Commission shall develop recommendations with
respect to--
(1) changes to Federal law that would improve the
management and administration of Indian trust assets by the
Secretary of the Interior;
(2) changes to Indian trust asset management and
administration practices that would--
(A) better protect and conserve Indian trust
assets;
(B) improve the return on those assets to
individual Indian and Indian tribal beneficiaries; or
(C) improve the level of security of individual
Indian and Indian tribal money account data and assets;
and
(3) proposed Indian trust asset management standards that
are consistent with any Federal law that is otherwise
applicable to the management and administration of the assets.
(d) Report.--Not later than 2 years after the date on which the
Commission holds the initial meeting, the Commission shall submit to
the Committee on Indian Affairs of the Senate, the Committee on
Resources of the House of Representatives, and the Secretary of the
Interior a report that includes--
(1) an overview and the results of the reviews and
assessments under subsection (a); and
(2) any recommendations of the Commission under subsection
(c).
SEC. 205. POWERS.
(a) Hearings.--The Commission may hold such hearings, meet and act
at such times and places, take such testimony, and receive such
evidence as the Chairperson determines to be appropriate to carry out
this title.
(b) Information From Federal Agencies.--
(1) In general.--The Commission may secure directly from a
Federal agency such information as the Chairperson determines
to be necessary to carry out this title.
(2) Provision of information.--On request of the
Chairperson, the head of a Federal agency shall provide
information to the Commission.
(c) Access to Personnel.--For purposes of carrying out this title,
the Commission shall have reasonable access to staff responsible for
Indian trust asset management and administration of--
(1) the Department of the Interior;
(2) the Department of the Treasury; and
(3) the Department of Justice.
(d) Postal Services.--The Commission may use the United States mail
in the same manner and under the same conditions as other Federal
agencies.
(e) Gifts.--The Commission may accept, use, and dispose of gifts or
donations of services or property to the same extent and under the same
conditions as other Federal agencies.
SEC. 206. COMMISSION PERSONNEL MATTERS.
(a) Compensation of Members.--
(1) Non-federal employees.--A member of the Commission who
is not an officer or employee of the Federal Government shall
be compensated at a rate equal to the daily equivalent of the
annual rate of basic pay prescribed for level IV of the
Executive Schedule under section 5315 of title 5, United States
Code, for each day (including travel time) during which the
member is engaged in the performance of the duties of the
Commission.
(2) Federal employees.--A member of the Commission who is
an officer or employee of the Federal Government shall serve
without compensation in addition to the compensation received
for the services of the member as an officer or employee of the
Federal Government.
(b) Travel Expenses.--A member of the Commission shall be allowed
travel expenses, including per diem in lieu of subsistence, at rates
authorized for an employee of an agency under subchapter I of chapter
57 of title 5, United States Code, while away from home or regular
place of business of the member in the performance of the duties of the
Commission.
(c) Staff.--
(1) In general.--The Chairperson may, without regard to the
civil services laws (including regulations), appoint and
terminate an executive director and such other additional
personnel as are necessary to enable the Commission to perform
the duties of the Commission.
(2) Confirmation of executive director.--The employment of
an executive director shall be subject to confirmation by the
Commission.
(3) Compensation.--
(A) In general.--Except as provided in subparagraph
(B), the Chairperson may fix the compensation of the
executive director and other personnel without regard
to the provisions of chapter 51 and subchapter III of
title 5, United States Code, relating to classification
of positions and General Schedule pay rates.
(B) Maximum rate of pay.--The rate of pay for the
executive director and other personnel shall not exceed
the rate payable for level V of the Executive Schedule
under section 5316 of title 5, United States Code.
SEC. 207. EXEMPTION FROM FACA.
The Federal Advisory Committee Act (5 U.S.C. App.) shall not apply
to the Commission if all hearings of the Commission are held open to
the public.
SEC. 208. AUTHORIZATION OF APPROPRIATIONS.
There are authorized to be appropriated such sums as are necessary
to carry out this title.
SEC. 209. TERMINATION OF COMMISSION.
The Commission and the authority of the Commission under this
title shall terminate on the date that is 3 years after the date on
which the Commission holds the initial meeting of the Commission.
TITLE III--INDIAN TRUST ASSET MANAGEMENT DEMONSTRATION PROJECT ACT
SEC. 301. SHORT TITLE.
This title may be cited as the ``Indian Trust Asset Management
Demonstration Project Act of 2005''.
SEC. 302. DEFINITIONS.
In this title:
(1) Project.--The term ``Project'' means the Indian trust
asset management demonstration project established under
section 303(a).
(2) Other indian tribe.--The term ``other Indian tribe''
means an Indian tribe that--
(A) is federally recognized;
(B) is not a section 131 Indian tribe; and
(C) submits an application under section 303(c).
(3) Secretary.--The term ``Secretary'' means the Secretary
of the Interior.
(4) Section 131 indian tribe.--The term ``section 131
Indian tribe'' means any Indian tribe that is participating in
the demonstration project under section 131 of title III,
division E of the Consolidated Appropriations Act, 2005 (Public
Law 108-447; 118 Stat. 2809).
SEC. 303. ESTABLISHMENT OF DEMONSTRATION PROJECT; SELECTION OF
PARTICIPATING INDIAN TRIBES.
(a) In General.--The Secretary shall establish and carry out an
Indian trust asset management demonstration project, in accordance with
this title.
(b) Selection of Participating Indian Tribes.--
(1) Section 131 indian tribes.--A section 131 Indian tribe
shall be eligible to participate in the Project if the section
131 Indian tribe submits to the Secretary an application under
subsection (c).
(2) Other tribes.--
(A) In general.--Any other Indian tribe shall be
eligible to participate in the Project if--
(i) the other Indian tribe submits to the
Secretary an application under subsection (c);
and
(ii) the Secretary approves the application
of the other Indian tribe.
(B) Limitation.--
(i) 30 or fewer applicants.--If 30 or fewer
other Indian tribes submit applications under
subsection (c), each of the other Indian tribes
shall be eligible to participate in the
Project.
(ii) More than 30 applicants.--
(I) In general.--If more than 30
other Indian tribes submit applications
under subsection (c), the Secretary
shall select 30 other Indian tribes to
participate in the Project.
(II) Preference.--In selecting
other Indian tribes under subclause
(I), the Secretary shall give
preference to other Indian tribes the
applications of which were first
received by the Secretary.
(3) Notice.--
(A) In general.--The Secretary shall provide a
written notice to each Indian tribe selected to
participate in the Project.
(B) Contents.--A notice under subparagraph (A)
shall include--
(i) a statement that the application of the
Indian tribe has been approved by the
Secretary; and
(ii) a requirement that the Indian tribe
shall submit to the Secretary a proposed Indian
trust asset management plan in accordance with
section 304.
(c) Application.--
(1) In general.--To be eligible to participate in the
Project, an Indian tribe shall submit to the Secretary a
written application in accordance with paragraph (2).
(2) Requirements.--The Secretary shall take into
consideration an application under this subsection only if the
application--
(A) includes a copy of a resolution or other
appropriate action by the governing body of the Indian
tribe, as determined by the Secretary, in support of or
authorizing the application;
(B) is received by the Secretary by the date that
is 180 days after the date of enactment of this Act;
and
(C) states that the Indian tribe is requesting to
participate in the Project.
(d) Duration.--The Project shall remain in effect for a period of 8
years after the date of enactment of this Act.
SEC. 304. INDIAN TRUST ASSET MANAGEMENT PLAN.
(a) Proposed Plan.--
(1) Submission.--
(A) In general.--Not later than 120 days after the
date on which an Indian tribe receives a notice from
the Secretary under section 303(b)(3), the Indian tribe
shall submit to the Secretary a proposed Indian trust
asset management plan in accordance with paragraph (2).
(B) Time limitations.--
(i) In general.--Except as provided in
clause (ii), any Indian tribe that fails to
submit the Indian trust asset management plan
of the Indian tribe by the date specified in
subparagraph (A) shall no longer be eligible to
participate in the Project.
(ii) Extension.--The Secretary shall grant
an extension of not more than 60 days to an
Indian tribe if the Indian tribe submits a
written request for such an extension before
the date described in subparagraph (A).
(2) Contents.--A proposed Indian trust asset management
plan shall include provisions that--
(A) identify the trust assets that will be subject
to the plan, including financial and nonfinancial trust
assets;
(B) establish trust asset management objectives and
priorities for Indian trust assets that are located
within the reservation, or otherwise subject to the
jurisdiction, of the Indian tribe;
(C) allocate trust asset management funding that is
available for the Indian trust assets subject to the
plan in order to meet the trust asset management
objectives and priorities;
(D) if the Indian tribe has contracted or compacted
functions or activities under the Indian Self-
Determination and Education Assistance Act (25 U.S.C.
450 et seq.) relating to the management of trust
assets--
(i) identify the functions or activities
that are being performed by the Indian tribe
under the contracts or compacts; and
(ii) describe the proposed management
systems, practices, and procedures that the
Indian tribe will follow; and
(E) establish procedures for nonbinding mediation
or resolution of any dispute between the Indian tribe
and the United States relating to the trust asset
management plan.
(3) Authority of indian tribes to develop systems,
practices, and procedures.--For purposes of preparing and
carrying out a management plan under this section, an Indian
tribe that has compacted or contracted activities or functions
under the Indian Self-Determination and Education Assistance
Act (25 U.S.C. 450 et seq.), for purposes of carrying out the
activities or functions, may develop and carry out trust asset
management systems, practices, and procedures that differ from
any such systems, practices, and procedures used by the
Secretary in managing the trust assets if the systems,
practices, and procedures of the Indian tribe meet the
requirements of the laws, standards, and responsibilities
described in subsection (c).
(4) Technical assistance and information.--The Secretary
shall provide to an Indian tribe any technical assistance and
information, including budgetary information, that the Indian
tribe determines to be necessary for preparation of a proposed
plan on receipt of a written request from the Indian tribe.
(b) Approval and Disapproval of Proposed Plans.--
(1) Approval.--
(A) In general.--Not later than 120 days after the
date on which an Indian tribe submits a proposed Indian
trust asset management plan under subsection (a), the
Secretary shall approve or disapprove the proposed
plan.
(B) Requirements for disapproval.--The Secretary
shall approve a proposed plan unless the Secretary
determines that--
(i) the proposed plan fails to address a
requirement under subsection (a)(2);
(ii) the proposed plan includes 1 or more
provisions that are inconsistent with
subsection (c); or
(iii) the cost of implementing the proposed
plan exceeds the amount of funding available
for the management of trust assets that would
be subject to the proposed plan.
(2) Action on disapproval.--
(A) Notice.--If the Secretary disapproves a
proposed plan under paragraph (1)(B), the Secretary
shall provide to the Indian tribe a written notice of
the disapproval, including any reason why the proposed
plan was disapproved.
(B) Action by tribes.--An Indian tribe the proposed
plan of which is disapproved under paragraph (1)(B) may
resubmit an amended proposed plan not later than 90
days after the date on which the Indian tribe receives
the notice under subparagraph (A).
(3) Failure to approve or disapprove.--If the Secretary
fails to approve or disapprove a proposed plan in accordance
with paragraph (1), the plan shall be considered to be
disapproved under clauses (i) and (ii) of paragraph (1)(B).
(4) Judicial review.--An Indian tribe may seek judicial
review of the determination of the Secretary in accordance with
subchapter II of chapter 5, and chapter 7, of title 5, United
States Code (commonly known as the ``Administrative Procedure
Act'') if--
(A) the Secretary disapproves the proposed plan of
the Indian tribe under paragraph (1) or (3); and
(B) the Indian tribe has exhausted any other
administrative remedy available to the Indian tribe.
(c) Applicable Laws; Standards; Trust Responsibility.--
(1) Applicable laws.--An Indian trust asset management
plan, and any activity carried out under the plan, shall not be
approved unless the proposed plan is consistent with--
(A) all Federal treaties, statutes, regulations,
Executive orders, and court decisions that are
applicable to the trust assets, or the management of
the trust assets, identified in the plan; and
(B) all tribal laws that are applicable to the
trust assets, or the management of trust assets,
identified in the plan, except to the extent that the
laws are inconsistent with the treaties, statutes,
regulations, Executive orders, and court decisions
referred to in subparagraph (A).
(2) Standards.--Subject to the laws referred to in
paragraph (1)(A), an Indian trust asset management plan shall
not be approved unless the Secretary determines that the plan
will--
(A) protect trust assets from loss, waste, and
unlawful alienation;
(B) promote the interests of the beneficial owner
of the trust asset;
(C) conform, to the maximum extent practicable, to
the preferred use of the trust asset by the beneficial
owner, unless the use is inconsistent with a treaty,
statute, regulation, Executive order, or court decision
referred to in paragraph (1)(A);
(D) protect any applicable treaty-based fishing,
hunting and gathering, and similar rights relating to
the use, access, or enjoyment of a trust asset; and
(E) require that any activity carried out under the
plan be carried out in good faith and with loyalty to
the beneficial owner of the trust asset.
(3) Trust responsibility.--An Indian trust asset management
plan shall not be approved unless the Secretary determines that
the plan is consistent with the trust responsibility of the
United States to the Indian tribe and individual Indians.
(d) Termination of Plan.--
(1) In general.--An Indian tribe may terminate an Indian
trust asset management plan on any date after the date on which
a proposed Indian trust asset management plan is approved by
providing to the Secretary--
(A) a notice of the intent of the Indian tribe to
terminate the plan; and
(B) a resolution of the governing body of the
Indian tribe authorizing the termination of the plan.
(2) Effective date.--A termination of an Indian trust asset
management plan under paragraph (1) takes effect on October 1
of the first fiscal year following the date on which a notice
is provided to the Secretary under paragraph (1)(A).
SEC. 305. EFFECT OF TITLE.
(a) Liability.--Nothing in this title, or a trust asset management
plan approved under section 304, shall independently diminish,
increase, create, or otherwise affect the liability of the United
States or an Indian tribe participating in the Project for any loss
resulting from the management of an Indian trust asset under an Indian
trust asset management plan.
(b) Effect on Other Laws.--Nothing in this title amends or
otherwise affects the application of any treaty, statute, regulation,
Executive order, or court decision that is applicable to Indian trust
assets or the management or administration of Indian trust assets,
including the Indian Self-Determination and Education Assistance Act
(25 U.S.C. 450 et seq.).
(c) Trust Responsibility.--Nothing in this title diminishes or
otherwise affects the trust responsibility of the United States to
Indian tribes and individual Indians.
TITLE IV--FRACTIONAL INTEREST PURCHASE AND CONSOLIDATION PROGRAM
SEC. 401. FRACTIONAL INTEREST PROGRAM.
Section 213 of the Indian Land Consolidation Act (25 U.S.C. 2212)
is amended--
(1) by redesignating subsection (d) as subsection (h); and
(2) by inserting after subsection (c) the following:
``(d) Purchase of Interests in Fractionated Indian Land.--
``(1) Incentives.--In acquiring an interest under this
section in any parcel of land that includes undivided trust or
restricted interests owned by not less than 20 separate
individuals, as determined by the Secretary, the Secretary may
include in the offered purchase price for the interest, in
addition to fair market value, an amount not less than $100 and
not to exceed $350, as an incentive for the owner to sell the
interest to the Secretary.
``(2) Sale of all trust or restricted interests.--If an
individual agrees to sell to the Secretary all trust or
restricted interests owned by the individual, the Secretary may
include in the offered purchase price, in addition to fair
market value and the incentive described in paragraph (1), an
amount not to exceed $2,000, as the Secretary determines to be
appropriate, taking into consideration the avoided costs to the
United States of probating the estate of the individual or an
heir of the individual.
``(e) Certain Parcels of Highly Fractionated Indian Land.--
``(1) Definition of offeree.--In this subsection, the term
`offeree' does not include the Indian tribe that has
jurisdiction over a parcel of land for which an offer is made.
``(2) Offer to purchase.--
``(A) In general.--If the Secretary determines that
a tract of land consists of not less than 200 separate
undivided trust or restricted interests, the Secretary
may offer to purchase the interests in the tract, in
accordance with this subsection, for an amount equal to
the sum of--
``(i) the fair market value of the
interests; and
``(ii) an additional amount, to be
determined by the Secretary, not less than
triple the fair market value of the interest.
``(B) Requirement.--The Secretary shall make an
offer under subparagraph (A) not later than 3 days
before the date on which the Secretary mails a notice
of the offer to the offeree under paragraph (3).
``(3) Notice of offer.--
``(A) In general.--The Secretary shall provide to
an offeree, by certified mail to the last known address
of the offeree, a notice of any offer to purchase land
under this subsection.
``(B) Inclusions.--A notice under subparagraph (A)
shall include in plain language, as determined by the
Secretary--
``(i) the date on which the offer was made;
``(ii) the name of the offeree;
``(iii) the location of the tract of land
containing the interest that is the subject of
the offer;
``(iv) the size of the interest of the
offeree, expressed in terms of a fraction or a
percentage of the tract of land described in
clause (iii);
``(v) the fair market value of the tract of
land described in clause (iii);
``(vi) the fair market value of the
interest of the offeree;
``(vii) the amount offered for the interest
in addition to fair market value under
paragraph (2)(A)(ii);
``(viii) a statement that the offeree shall
be considered to have accepted the offer for
the amount stated in the notice unless a notice
of rejection form is deposited in the United
States mail not later than 90 days after the
date on which the offer is received; and
``(ix) a self-addressed, postage pre-paid
notice of rejection form.
``(4) Treatment of offer.--
``(A) In general.--An offer made under this
subsection shall be considered to be accepted by the
offeree if--
``(i) the certified mail receipt for the
offer is signed by the offeree; and
``(ii) the notice of rejection form
described in paragraph (3)(B)(ix) is not
deposited in the United States mail by the date
that is 90 days after the date on which the
offer is received.
``(B) Rejection.--An offer made under this
subsection shall be considered to be rejected by the
offeree if--
``(i) the notice of rejection form
described in paragraph (3)(B)(ix) is deposited
in the United States mail by the date that is
90 days after the date on which the offer is
received; or
``(ii) the certified mail receipt for the
offer is returned to the Secretary unsigned by
the offeree.
``(5) Withdrawal of acceptance; notice.--
``(A) Withdrawal of acceptance.--A person that is
considered to have accepted an offer under paragraph
(4)(A) may withdraw the acceptance by depositing in the
United States mail a notice of withdrawal of acceptance
form by the date that is 30 days after the date of
receipt of the notice under subparagraph (B).
``(B) Notice.--The Secretary shall provide to any
person that is considered to have accepted an offer
under paragraph (4)(A), by certified mail, restricted
delivery, to the last known address of the person, a
preaddressed, postage prepaid withdrawal of acceptance
form and a notice stating that--
``(i) the offer made to the person is
considered to be accepted; and
``(ii) the person has the right to withdraw
the acceptance by depositing in the United
States mail the notice of withdrawal of
acceptance form by the date that is 30 days
after the date on which the notice was
delivered to the person.
``(6) Notice of acceptance and right to appeal.--The
Secretary shall provide to any person that has been served with
a notice under paragraph (5)(B) and fails to withdraw the
acceptance of the offer in accordance with paragraph (5)(A), by
first class mail to the last known address of the person, a
notice stating that--
``(A) the offer made to the person is considered to
be accepted and not timely withdrawn; and
``(B) after exhausting all administrative remedies,
the person may appeal any determination of the
Secretary in accordance with paragraph (7).
``(7) Judicial review.--A person described in paragraph (6)
may appeal any determination of the Secretary with respect to--
``(A) the number of owners of undivided interests
in a tract of land required under paragraph (2);
``(B) the fair market value of a tract of land or
interest in land;
``(C) the date on which a notice of rejection form
was deposited in the United States mail under paragraph
(4)(B)(i); or
``(D) the date on which a notice of withdrawal of
acceptance form was deposited in the United States mail
under paragraph (5)(A).
``(f) Offer to Settle Claims Against the United States.--
``(1) In general.--The Secretary may make an offer to any
individual owner (not including an Indian tribe) of a trust or
restricted interest in a tract of land to settle any claim that
the owner may have against the United States relating to the
specific tract of land of which the interest is a part (not
including a claim for an accounting described in title I of the
Indian Trust Reform Act of 2005).
``(2) Requirements.--An offer to settle claims under this
subsection shall--
``(A) be in writing;
``(B) be delivered to an individual owner by the
Secretary in person or through first class mail; and
``(C) include--
``(i) the name of the individual owner;
``(ii) a description of the tract of land
to which the offer relates;
``(iii) the amount offered to settle a
claim of the individual owner;
``(iv) the manner and date by which the
individual owner shall accept the offer;
``(v) a statement that the individual owner
is under no obligation to accept the offer;
``(vi) a statement that the individual
owner has the right to consult an attorney or
other advisor before accepting the offer;
``(vii) a statement that acceptance of the
offer by the individual owner will result in a
full and final settlement of all claims, known
and unknown, of the individual owner (including
the heirs and assigns of the individual owner)
against the United States relating to the tract
of land identified in the offer; and
``(viii) a statement that the settlement
proposed by the offer does not cover any claim
for an accounting described in title I of the
Indian Trust Reform Act of 2005.
``(3) Acceptance.--No acceptance of an offer under this
subsection shall be valid or binding on the individual owner
unless the acceptance--
``(A) is in writing;
``(B) is signed by the individual owner;
``(C) is notarized; and
``(D) is attached to a copy of, or contains all
material terms of, the offer to which the acceptance
corresponds.
``(4) Limitation.--No offer to purchase an interest under
this section or any other provision of law shall be conditioned
on the acceptance of an offer to settle a claim under this
subsection.
``(5) Other laws.--The authority of the Secretary to settle
claims under this subsection shall be in addition to, and not
in lieu of, the authority of the Secretary to settle claims
under any other provision of Federal law.
``(g) Borrowing From Treasury.--
``(1) Issuance of obligations.--
``(A) In general.--To the extent approved in annual
appropriations Acts, the Secretary may issue to the
Secretary of the Treasury obligations in such amounts
as the Secretary determines to be necessary to acquire
interests under this Act, subject to approval of the
Secretary of the Treasury, and bearing interest at a
rate to be determined by the Secretary of the Treasury,
taking into consideration current market yields on
outstanding marketable obligations of the United States
of comparable maturities to the obligations.
``(B) Limitation.--The aggregate amount of
obligations under subparagraph (A) outstanding at any
time shall not exceed $[__________].
``(2) Forms and denominations.--The obligations issued
under paragraph (1) shall be in such forms and denominations,
and subject to such other terms and conditions, as the
Secretary of the Treasury may prescribe.
``(3) Repayment.--
``(A) In general.--Revenues derived from land
restored to the Tribe under this Act shall be used by
the Secretary to pay the principal and interest on the
obligations issued under paragraph (1).
``(B) Assurance of repayment.--The Secretary shall
ensure, to the maximum extent possible, that the
revenues described in subparagraph (A) provide
reasonable assurance of repayment of the obligations
issued under paragraph (1).
``(4) Authorization of appropriations.--There are
authorized to be appropriated to the Secretary for each fiscal
year beginning after the date of enactment of this subsection
such sums as are necessary to cover any difference between--
``(A) the total amount of repayments of principal
and interest on obligations issued to the Secretary of
the Treasury under paragraph (1) during the previous
fiscal year; and
``(B) the total amount of repayments described in
subparagraph (A) that were contractually required to be
made to the Secretary of the Treasury during that
fiscal year.
``(h) Receipt of Payments Have No Impact on Benefits Under Other
Federal Programs.--The receipt of a payment by an offeree under this
title shall not be--
``(1) subject to Federal or State income tax; or
``(2) treated as benefits or otherwise taken into account
in determining the eligibility of the offeree for, or the
amount of benefits under, any other Federal program, including
the social security program, the medicare program, the medicaid
program, the State children's health insurance program, the
food stamp program, or the Temporary Assistance for Needy
Families program.''.
TITLE V--RESTRUCTURING BUREAU OF INDIAN AFFAIRS AND OFFICE OF SPECIAL
TRUSTEE
SEC. 501. PURPOSE.
The purpose of this title is to ensure a more effective and
accountable administration of duties of the Secretary of the Interior
with respect to providing services and programs to Indians and Indian
tribes, including the management of Indian trust resources.
SEC. 502. DEFINITIONS.
In this title:
(1) Bureau.--The term ``Bureau'' means the Bureau of Indian
Affairs.
(2) Office.--The term ``Office'' means the Office of Trust
Reform Implementation and Oversight referred to in section
503(c).
(3) Secretary.--The term ``Secretary'' means the Secretary
of the Interior.
(4) Under secretary.--The term ``Under Secretary'' means
the individual appointed to the position of Under Secretary for
Indian Affairs, established by section 503(a).
SEC. 503. UNDER SECRETARY FOR INDIAN AFFAIRS.
(a) Establishment of Position.--There is established in the
Department of the Interior the position of Under Secretary for Indian
Affairs, who shall report directly to the Secretary.
(b) Appointment.--
(1) In general.--Except as provided in paragraph (2), the
Under Secretary shall be appointed by the President, by and
with the advice and consent of the Senate.
(2) Exception.--The officer serving as the Assistant
Secretary for Indian Affairs on the date of enactment of this
Act may assume the position of Under Secretary without
appointment under paragraph (1) if--
(A) the officer was appointed as Assistant
Secretary for Indian Affairs by the President by and
with the advice and consent of the Senate; and
(B) not later than 180 days after the date of
enactment of this Act, the Secretary approves the
assumption.
(c) Duties.--In addition to the duties transferred to the Under
Secretary under sections 504 and 505, the Under Secretary, acting
through an Office of Trust Reform Implementation and Oversight, shall--
(1) carry out any activity relating to trust fund accounts
and trust resource management of the Bureau (except any
activity carried out under the Office of the Special Trustee
for American Indians before the date on which the Office of the
Special Trustee is abolished), in accordance with the American
Indian Trust Fund Management Reform Act of 1994 (25 U.S.C. 4001
et seq.);
(2) develop and maintain an inventory of Indian trust
assets and resources;
(3) coordinate with the Special Trustee for American
Indians to ensure an orderly transition of the functions of the
Special Trustee under section 505;
(4) supervise any activity carried out by the Department of
the Interior, including--
(A) to the extent that the activities relate to
Indian affairs, activities carried out by--
(i) the Commissioner of Reclamation;
(ii) the Director of the Bureau of Land
Management; and
(iii) the Director of the Minerals
Management Service; and
(B) intergovernmental relations between the Bureau
and Indian tribal governments;
(5) to the maximum extent practicable, coordinate
activities and policies of the Bureau with activities and
policies of--
(A) the Bureau of Reclamation;
(B) the Bureau of Land Management; and
(C) the Minerals Management Service;
(6) provide for regular consultation with Indians and
Indian tribes that own interests in trust resources and trust
fund accounts;
(7) manage and administer Indian trust resources in
accordance with any applicable Federal law;
(8) take steps to protect the security of data relating to
individual Indian and Indian tribal trust accounts; and
(9) take any other measure the Under Secretary determines
to be necessary with respect to Indian affairs.
SEC. 504. TRANSFER OF FUNCTIONS OF ASSISTANT SECRETARY FOR INDIAN
AFFAIRS.
(a) Transfer of Functions.--There is transferred to the Under
Secretary any function of the Assistant Secretary for Indian Affairs
that has not been carried out by the Assistant Secretary as of the date
of enactment of this Act.
(b) Determinations of Certain Functions by the Office of Management
and Budget.--If necessary, the Office of Management and Budget shall
make any determination relating to the functions transferred under
subsection (a).
(c) Personnel Provisions.--
(1) Appointments.--The Under Secretary may appoint and fix
the compensation of such officers and employees as the Under
Secretary determines to be necessary to carry out any function
transferred under this section.
(2) Requirements.--Except as otherwise provided by law--
(A) an officer or employee described in paragraph
(1) shall be appointed in accordance with the civil
service laws; and
(B) the compensation of the officer or employee
shall be fixed in accordance with title 5, United
States Code.
(d) Delegation and Assignment.--
(1) In general.--Except as otherwise expressly prohibited
by law or otherwise provided by this section, the Under
Secretary may--
(A) delegate any of the functions transferred to
the Under Secretary by this section and any function
transferred or granted to the Under Secretary after the
date of enactment of this Act to such officers and
employees of the Office as the Under Secretary may
designate; and
(B) authorize successive redelegations of such
functions as the Under Secretary determines to be
necessary or appropriate.
(2) Delegation.--No delegation of functions by the Under
Secretary under this section shall relieve the Under Secretary
of responsibility for the administration of the functions.
(e) Reorganization.--The Under Secretary may allocate or reallocate
any function transferred under this section among the officers of the
Office, and establish, consolidate, alter, or discontinue such
organizational entities in the Office, as the Under Secretary
determines to be necessary or appropriate.
(f) Rules.--The Under Secretary may prescribe, in accordance with
the provisions of chapters 5 and 6 of title 5, United States Code, such
rules and regulations as the Under Secretary determines to be necessary
or appropriate to administer and manage the functions of the Office.
(g) Transfer and Allocations of Appropriations and Personnel.--
(1) In general.--Except as otherwise provided in this
section, the personnel employed in connection with, and the
assets, liabilities, contracts, property, records, and
unexpended balances of appropriations, authorizations,
allocations, and other funds employed, used, held, arising
from, available to, or to be made available in connection with,
the functions transferred by this section, subject to section
1531 of title 31, United States Code, shall be transferred to
the Office.
(2) Unexpended funds.--Unexpended funds transferred
pursuant to this subsection shall be used only for the purposes
for which the funds were originally authorized and
appropriated.
(h) Incidental Transfers.--
(1) In general.--The Director of the Office of Management
and Budget, at any time the Director may provide, may make such
determinations as are necessary with regard to the functions
transferred by this section, and make such additional
incidental dispositions of personnel, assets, liabilities,
grants, contracts, property, records, and unexpended balances
of appropriations, authorizations, allocations, and other funds
held, used, arising from, available to, or to be made available
in connection with such functions, as are necessary, to carry
out this section.
(2) Termination of affairs.--The Director of the Office of
Management and Budget shall provide for the termination of the
affairs of all entities terminated by this section and for any
further measures and dispositions as are necessary to
effectuate the purposes of this section.
(i) Effect on Personnel.--
(1) In general.--Except as otherwise provided by this
section, the transfer pursuant to this section of full-time
personnel (except special Government employees) and part-time
personnel holding permanent positions shall not cause any such
employee to be separated or reduced in grade or compensation
for a period of at least 1 year after the date of transfer of
the employee under this section.
(2) Executive schedule positions.--Except as otherwise
provided in this section, any person who, on the day preceding
the date of enactment of this Act, held a position compensated
in accordance with the Executive Schedule prescribed in chapter
53 of title 5, United States Code, and who, without a break in
service, is appointed to a position in the Office having duties
comparable to the duties performed immediately preceding such
appointment shall continue to be compensated in the new
position at not less than the rate provided for the previous
position, for the duration of the service of the person in the
new position.
(3) Termination of certain positions.--Positions whose
incumbents are appointed by the President, by and with the
advice and consent of the Senate, the functions of which are
transferred by this title, shall terminate on the date of
enactment of this Act.
(j) Separability.--If a provision of this section or the
application of this section to any person or circumstance is held
invalid, neither the remainder of this section nor the application of
the provision to other persons or circumstances shall be affected.
(k) Transition.--The Under Secretary may use--
(1) the services of the officers, employees, and other
personnel of the Assistant Secretary for Indian Affairs
relating to functions transferred to the Office by this
section; and
(2) funds appropriated to the functions for such period of
time as may reasonably be needed to facilitate the orderly
implementation of this section.
(l) References.--Any reference in a Federal law, Executive order,
rule, regulation, delegation of authority, or document relating to the
Assistant Secretary for Indian Affairs, with respect to functions
transferred under this section, shall be deemed to be a reference to
the Under Secretary.
(m) Recommended Legislation.--Not later than 180 days after the
effective date of this title, the Under Secretary, in consultation with
the appropriate committees of Congress and the Director of the Office
of Management and Budget, shall submit to Congress any recommendations
relating to additional technical and conforming amendments to Federal
law to reflect the changes made by this section.
(n) Effect of Section.--
(1) Continuing effect of legal documents.--Any legal
document relating to a function transferred by this section
that is in effect on the date of enactment of this Act shall
continue in effect in accordance with the terms of the document
until the document is modified or terminated by--
(A) the President;
(B) the Under Secretary;
(C) a court of competent jurisdiction; or
(D) operation of Federal or State law.
(2) Proceedings not affected.--This section shall not
affect any proceeding (including a notice of proposed
rulemaking, an administrative proceeding, and an application
for a license, permit, certificate, or financial assistance)
relating to a function transferred under this section that is
pending before the Assistant Secretary on the date of enactment
of this Act.
SEC. 505. OFFICE OF SPECIAL TRUSTEE FOR AMERICAN INDIANS.
(a) Termination.--Notwithstanding sections 302 and 303 of the
American Indian Trust Fund Management Reform Act of 1994 (25 U.S.C.
4042; 4043), the Office of Special Trustee for American Indians shall
terminate on the effective date of this section.
(b) Transfer of Functions.--There is transferred to the Under
Secretary any function of the Special Trustee for American Indians that
has not been carried out by the Special Trustee as of the effective
date of this section.
(c) Determinations of Certain Functions by the Office of Management
and Budget.--If necessary, the Office of Management and Budget shall
make any determination relating to the functions transferred under
subsection (b).
(d) Personnel Provisions.--
(1) Appointments.--The Under Secretary may appoint and fix
the compensation of such officers and employees as the Under
Secretary determines to be necessary to carry out any function
transferred under this section.
(2) Requirements.--Except as otherwise provided by law--
(A) any officer or employee described in paragraph
(1) shall be appointed in accordance with the civil
service laws; and
(B) the compensation of such an officer or employee
shall be fixed in accordance with title 5, United
States Code.
(e) Delegation and Assignment.--
(1) In general.--Except as otherwise expressly prohibited
by law or otherwise provided by this section, the Under
Secretary may--
(A) delegate any of the functions transferred to
the Under Secretary under this section and any function
transferred or granted to the Under Secretary after the
effective date of this section to such officers and
employees of the Office as the Under Secretary may
designate; and
(B) authorize successive redelegations of the
functions as are necessary or appropriate.
(2) Delegation.--No delegation of functions by the Under
Secretary under this section shall relieve the Under Secretary
of responsibility for the administration of the functions.
(f) Reorganization.--The Under Secretary may allocate or reallocate
any function transferred under subsection (b) among the officers of the
Office, and establish, consolidate, alter, or discontinue such
organizational entities in the Office as the Under Secretary determines
to be necessary or appropriate.
(g) Rules.--The Under Secretary may prescribe, in accordance with
the provisions of chapters 5 and 6 of title 5, United States Code, such
rules and regulations as the Under Secretary determines to be necessary
or appropriate to administer and manage the functions of the Office.
(h) Transfer and Allocations of Appropriations and Personnel.--
(1) In general.--Except as otherwise provided in this
section, the personnel employed in connection with, and the
assets, liabilities, contracts, property, records, and
unexpended balances of appropriations, authorizations,
allocations, and other funds employed, used, held, arising
from, available to, or to be made available in connection with
the functions transferred by this section, subject to section
1531 of title 31, United States Code, shall be transferred to
the Office.
(2) Unexpended funds.--Unexpended funds transferred
pursuant to this subsection shall be used only for the purposes
for which the funds were originally authorized and
appropriated.
(i) Incidental Transfers.--
(1) In general.--The Director of the Office of Management
and Budget, at any time the Director may provide, may make such
determinations as are necessary with regard to the functions
transferred by this section, and make such additional
incidental dispositions of personnel, assets, liabilities,
grants, contracts, property, records, and unexpended balances
of appropriations, authorizations, allocations, and other funds
held, used, arising from, available to, or to be made available
in connection with such functions, as are necessary, to carry
out this section.
(2) Termination of affairs.--The Director of the Office of
Management and Budget shall provide for the termination of the
affairs of all entities terminated by this section and for any
further measures and dispositions as are necessary to
effectuate the purposes of this section.
(j) Effect on Personnel.--
(1) In general.--Except as otherwise provided by this
section, the transfer pursuant to this section of full-time
personnel (except special Government employees) and part-time
personnel holding permanent positions shall not cause any such
employee to be separated or reduced in grade or compensation
for a period of at least 1 year after the date of transfer of
the employee under this section.
(2) Executive schedule positions.--Except as otherwise
provided in this section, any person who, on the day preceding
the effective date of this section, held a position compensated
in accordance with the Executive Schedule prescribed in chapter
53 of title 5, United States Code, and who, without a break in
service, is appointed to a position in the Office having duties
comparable to the duties performed immediately preceding such
appointment, shall continue to be compensated in the new
position at not less than the rate provided for the previous
position, for the duration of the service of the person in the
new position.
(3) Termination of certain positions.--Positions the
incumbents of which are appointed by the President, by and with
the advice and consent of the Senate, and the functions of
which are transferred by this title, shall terminate on the
effective date of this section.
(k) Separability.--If a provision of this section or the
application of this section to any person or circumstance is held
invalid, neither the remainder of this section nor the application of
the provision to other persons or circumstances shall be affected.
(l) Transition.--The Under Secretary may use--
(1) the services of the officers, employees, and other
personnel of the Special Trustee relating to functions
transferred to the Office by this section; and
(2) funds appropriated to those functions for such period
of time as may reasonably be needed to facilitate the orderly
implementation of this section.
(m) References.--Any reference in a Federal law, Executive order,
rule, regulation, delegation of authority, or document relating to the
Special Trustee, with respect to functions transferred under this
section, shall be deemed to be a reference to the Under Secretary.
(n) Recommended Legislation.--Not later than 180 days after the
effective date of this title, the Under Secretary, in consultation with
the appropriate committees of Congress and the Director of the Office
of Management and Budget, shall submit to Congress any recommendations
relating to additional technical and conforming amendments to Federal
law to reflect the changes made by this section.
(o) Effect of Section.--
(1) Continuing effect of legal documents.--Any legal
document relating to a function transferred by this section
that is in effect on the effective date of this section shall
continue in effect in accordance with the terms of the document
until the document is modified or terminated by--
(A) the President;
(B) the Under Secretary;
(C) a court of competent jurisdiction; or
(D) operation of Federal or State law.
(2) Proceedings not affected.--This section shall not
affect any proceeding (including a notice of proposed
rulemaking, an administrative proceeding, and an application
for a license, permit, certificate, or financial assistance)
relating to a function transferred under this section that is
pending before the Special Trustee on the effective date of
this section.
(p) Effective Date.--This section shall take effect on December 31,
2008.
SEC. 506. HIRING PREFERENCE.
In appointing or otherwise hiring any employee to the Office, the
Under Secretary shall give preference to Indians in accordance with
section 12 of the Act of June 8, 1934 (25 U.S.C. 472).
SEC. 507. AUTHORIZATION OF APPROPRIATIONS.
There are authorized to be appropriated such sums as are necessary
to carry out this title.
TITLE VI--AUDIT OF INDIAN TRUST FUNDS
SEC. 601. AUDITS AND REPORTS.
(a) Financial Statements and Internal Control Report.--
(1) Financial statements.--For each fiscal year beginning
after the enactment of this Act, the Secretary of Interior
shall prepare financial statements for individual Indian,
Indian tribal, and other Indian trust accounts in accordance
with generally accepted accounting principles of the Federal
Government.
(2) Internal control report.--Concurrently with the
financial statements under by paragraph (1), the Secretary
shall prepare an internal control report that--
(A) establishes the responsibility of the Secretary
for establishing and maintaining an adequate internal
control structure and procedures for financial
reporting under this Act; and
(B) assesses the effectiveness of the internal
control structure and procedures for financial
reporting under subparagraph (A) during the preceding
fiscal year.
(b) Independent External Auditor.--
(1) In general.--The Comptroller General of the United
States shall enter into a contract with an independent external
auditor to conduct an audit and prepare a report in accordance
with this subparagraph.
(2) Audit report.--An independent external auditor shall
submit to the Committee on Indian Affairs of the Senate, and
make available to the public, an audit of the financial
statements under subsection (a)(1) in accordance with--
(A) generally accepted auditing standards of the
Federal Government; and
(B) the financial audit manual jointly issued by
the Government Accountability Office and the Council on
Integrity and Efficiency of the President.
(3) Attestation and report.--In conducting the audit under
paragraph (2), the independent external auditor shall attest
to, and report on, the assessment of internal controls made by
the Secretary under subsection (a)(2)(B).
(4) Payment for audit and report.--
(A) Transfer of funds.--On request of the
Comptroller General, the Secretary shall transfer to
the Government Accountability Office from funds made
available for administrative expenses of the Department
of Interior the amount requested by the Comptroller
General to pay for an annual audit and report.
(B) Credit to account.--
(i) In general.--The Controller General
shall credit the amount of any funds
transferred under subparagraph (A) to the
account established for salaries and expenses
of the Government Accountability Office.
(ii) Availability.--Any amount credited
under clause (i) shall be made available on
receipt, without fiscal year limitation, to
cover the full costs of the audit and report.
SEC. 602. AUTHORIZATION OF APPROPRIATIONS.
There are authorized to be appropriated such sums as are necessary
to carry out this title.
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