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116th Congress }                                            { Report
                        HOUSE OF REPRESENTATIVES
 2d Session    }                                            { 116-422

======================================================================

 
  PRACTICAL REFORMS AND OTHER GOALS TO REINFORCE THE EFFECTIVENESS OF 
  SELF-GOVERNANCE AND SELF-DETERMINATION FOR INDIAN TRIBES ACT OF 2019

                                _______
                                

  May 22, 2020.--Committed to the Committee of the Whole House on the 
              State of the Union and ordered to be printed

                                _______
                                

 Mr. Grijalva, from the Committee on Natural Resources, submitted the 
                               following

                              R E P O R T

                         [To accompany S. 209]

      [Including cost estimate of the Congressional Budget Office]

    The Committee on Natural Resources, to whom was referred 
the bill (S. 209) to amend the Indian Self-Determination and 
Education Assistance Act to provide further self-governance by 
Indian Tribes, and for other purposes, having considered the 
same, reports favorably thereon without amendment and 
recommends that the bill do pass.

                          Purpose of the Bill

    The purpose of S. 209 is to amend the Indian Self-
Determination and Education Assistance Act to provide further 
self-governance by Indian Tribes, and for other purposes.

                 Background and Need for Legislation\1\

---------------------------------------------------------------------------
    \1\Also see generally S. Rep. No. 116-34, at 112 (2019), https://
www.congress.gov/116/crpt/srpt34/CRPT-116srpt34.pdf--of which the above 
text is largely excerpts--providing a detailed accounting of the bill's 
history along with explanations of its provisions.
---------------------------------------------------------------------------
    The PROGRESS for Indian Tribes Act,\2\ S. 209, enhances 
tribal self-governance over programs funded through the 
Department of the Interior (DOI). Title IV of the Indian Self-
Determination and Education Assistance Act\3\ (ISDEAA) provides 
the legal framework under which tribes can assume control of 
certain DOI programs, and associated funding, and tailor those 
programs to the needs of their particular communities. S. 209 
would streamline and enhance the Title IV self-governance 
process at DOI by aligning it with Title V, the Health and 
Human Services self-governance statute.
---------------------------------------------------------------------------
    \2\The longer version of the bill's short title is the ``Practical 
Reforms and Other Goals to Reinforce the Effectiveness of Self-
Governance and Self-Determination for Indian Tribes Act of 2019''.
    \3\Pub. L. No. 93-638, 88 Stat. 2203 (1975), https://
www.govinfo.gov/content/pkg/STATUTE-88/pdf/STATUTE-88-Pg2203.pdf 
(codified as amended at 25 U.S.C. 5301 et seq.).
---------------------------------------------------------------------------
    With the enactment of the ISDEAA, the management and 
administration of federal Indian programs was put into the 
hands of tribal governments. The ISDEAA originally authorized 
tribes to enter into contracts with the Bureau of Indian 
Affairs (BIA) within DOI and the Indian Health Service (IHS) 
within the Department of Health and Human Services (HHS), to 
receive federal funds and manage programs that would otherwise 
be managed by the federal agencies.
    Indian tribes can administer these programs through 
compacts after demonstrating a high level of accountability and 
fiscal responsibility, including three years of administering 
contracts without material audit problems. Each contract or 
self-governance compact identifies functions and activities to 
be carried out by the tribe, as well as any administrative, 
reporting, or other requirements that must be followed. 
However, these self-governance agreements allow tribal 
management of programs pursuant to one compact instead of 
requiring different contracts for each individual program.
    In 1988, Congress amended the ISDEAA by adding Title III, 
which authorized the self-governance demonstration project.\4\ 
In 1992, the ISDEAA was amended to establish a self-governance 
demonstration program within the IHS as well.\5\ In 1994, 
Congress again amended the ISDEAA by adding Title IV, making 
the BIA self-governance program within the Department of the 
Interior a permanent option for tribes.\6\ Title IV authorized 
American Indian and Alaska Native tribes to negotiate compact 
agreements with the BIA under which tribes operate programs, 
services, functions, and activities that previously were 
administered and managed by the Department. The 1994 amendments 
also made certain non-BIA programs within DOI eligible for 
contracting or compacting.
---------------------------------------------------------------------------
    \4\Indian Self-Determination and Education Assistance Act 
Amendments of 1988, Pub. L. No. 100-472, 102 Stat. 2296 (1988), https:/
/www.govinfo.gov/content/pkg/STATUTE-102/pdf/STATUTE-102-Pg2285.pdf 
(codified throughout 25 U.S.C., including at 5321).
    \5\Indian Health Amendments of 1992, Pub. L. No. 102-573, Sec. 814, 
106 Stat. 4526, 4590 (1992), https://www.govinfo.gov/content/pkg/
STATUTE-106/pdf/STATUTE-106-Pg4526.pdf (codified at 25 U.S.C. 450f); 
see also Tribal Self-Governance Demonstration Project Act, Pub. L. No. 
102-184, 105 Stat. 1278 (1991), https://www.govinfo.gov/content/pkg/
STATUTE-105/pdf/STATUTE-105-Pg1278.pdf (requiring a study to determine 
the feasibility of extending the demonstration program to IHS).
    \6\Indian Self-Determination Act Amendments of 1994, Pub. L. No. 
103-413, 108 Stat. 4250 (1994), https://www.govinfo.gov/content/pkg/
STATUTE-108/pdf/STATUTE-108-Pg4250.pdf (codified throughout 25 U.S.C., 
https://uscode.house.gov/table3/103_413.htm).
---------------------------------------------------------------------------
    In 2000, Congress amended the ISDEAA to include Titles V 
and VI, making self-governance a permanent option for tribes to 
negotiate compacts with IHS.\7\ Title V made several detailed 
improvements, such as adding specific definitions and 
identifying mandatory and prohibited terms and conditions of 
compacts, funding agreements, and construction projects.
---------------------------------------------------------------------------
    \7\Tribal Self-Governance Amendments of 2000, Pub. L. No. 106-260, 
114 Stat. 711 (2000), https://www.congress.gov/106/plaws/publ260/PLAW-
106publ260.pdf (codified throughout 25 U.S.C., https://
uscode.house.gov/table3/106_260.htm).
---------------------------------------------------------------------------
    By contrast, Title IV of the ISDEAA contains serious gaps 
and flaws that hinder the full exercise of tribal self-
governance with regard to the Department of the Interior. 
Tribes would like to incorporate the Title V improvements into 
the Department of the Interior Title IV self-governance 
program, in part to gain consistency in the administration of 
their self-governance programs.
    To that end, S. 209:
           conforms Title IV to Title V in order to 
        create consistency and administrative efficiencies for 
        tribes now operating under two compacting regimes;
           establishes clear ``final offer'' processes 
        and timelines for situations when DOI and a tribe are 
        unable to agree on particular terms of a compact or 
        funding agreement, or when DOI delays approval 
        unreasonably;
           clarifies and limits the reasons for which 
        the agency may decline to enter a proposed agreement;
          provides a clear avenue of appeal and burden-
        of-proof framework for tribes to challenge adverse 
        agency decisions;
           clarifies tribal and federal oversight roles 
        in construction to ensure fiscal prudence and public 
        safety;
           leaves unchanged the Department's 
        discretionary authority to compact non-BIA programs 
        within DOI; and
           makes important amendments to Title I, the 
        self-determination contracting law, such as clarifying 
        reporting requirements, rules of interpretation, and 
        applicability of certain Title I provisions to Title IV 
        agreements.
    Most self-governance tribes manage programs within both HHS 
IHS and DOI BIA and have achieved great success. However, 
significant differences between the Title IV and Title V 
amendments to the ISDEAA have forced such tribes to operate 
under two separate sets of legislative and administrative 
requirements. It has long been a top legislative priority of 
tribal leaders to make conforming amendments to Title IV. Over 
the past sixteen years, several bills have been introduced and 
hearings held on both the House and Senate sides.\8\ While 
broadly supported in Indian country and, in recent years, by 
the administration, none of these bills were enacted.
---------------------------------------------------------------------------
    \8\E.g., S. 1715, 108th Cong. (2003); Legislative Hearing on H.R. 
3994, To Amend the Indian Self-Determination and Education Assistance 
Act to Provide Further Self-Governance by Indian Tribes, and for Other 
Purposes. ``Department of the Interior Tribal Self-Governance Act of 
2007'' Before the H. Comm. on Nat. Res., 110th Cong. (2007), https://
www.govinfo.gov/content/pkg/CHRG-110hhrg38969/pdf/CHRG-
110hhrg38969.pdf; Hearing on H.R. 4347, To Amend the Indian Self-
Determination and Education Assistance Act to Provide Further Self-
Governance by Indian Tribes, and for Other Purposes, Before the S. 
Comm. on Indian Affairs, 111th Cong. (2010), https://www.govinfo.gov/
content/pkg/CHRG-111shrg65293/pdf/CHRG-111shrg65293.pdf; Hearing on 
H.R. 4546, et al., Before the H. Subcomm. on Indian & Alaska Native 
Affairs, 113th Cong. (July 15, 2014) (not printed); S. 286, 114th Cong. 
(2015). See generally S. Rep. No. 116-34, at 3-4 (2019), https://
www.congress.gov/116/crpt/srpt34/CRPT-116srpt34.pdf (detailing the 
bill's legislative history across Congresses).
---------------------------------------------------------------------------

                            Committee Action

    S. 209 was introduced on January 24, 2019, by Senator John 
Hoeven (R-ND). The bill was referred solely to the Senate 
Committee on Indian Affairs. On January 29, 2019, the Senate 
Committee met to consider the bill and ordered it, without 
amendments, to be reported favorably to the Senate by voice 
vote. The Indian Affairs Committee reported the bill to the 
Senate on April 29, 2019. The Senate passed the bill, without 
amendment, by voice vote on June 27, 2019.
    The bill was received in the House on June 28, 2019, and 
was referred solely to the Committee on Natural Resources, and 
within the Committee to the Subcommittee for Indigenous Peoples 
of the United States. On July 16, 2019, the Subcommittee held a 
hearing on the House version of the bill, H.R. 2031, introduced 
by Representative Deb Haaland (D-NM).
    On December 5, 2019, the Natural Resources Committee met to 
consider S. 209. The Subcommittee was discharged by unanimous 
consent. Representative Tom McClintock (R-CA) offered an 
amendment designated McClintock #1. The amendment was not 
agreed to by a roll call vote of 13 yeas and 19 nays, as 
follows:

[GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT]

    No additional amendments were offered. The bill was adopted 
and ordered favorably reported to the House of Representatives 
by a roll call vote of 22 yeas and 10 nays, as follows:

[GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT]

                                Hearings

    For the purposes of section 103(i) of H. Res. 6 of the 
116th Congress--the following hearing was used to develop or 
consider S. 209: legislative hearing by the Subcommittee for 
Indigenous Peoples of the United States held on July 16, 2019.

            Committee Oversight Findings and Recommendations

     Regarding clause 2(b)(1) of rule X and clause 3(c)(1) of 
rule XIII of the Rules of the House of Representatives, the 
Committee on Natural Resources' oversight findings and 
recommendations are reflected in the body of this report.

      Compliance With House Rule XIII and Congressional Budget Act

    1. Cost of Legislation and the Congressional Budget Act. 
With respect to the requirements of clause 3(c)(2) and (3) of 
rule XIII of the Rules of the House of Representatives and 
sections 308(a) and 402 of the Congressional Budget Act of 
1974, the Committee has received the following estimate for the 
bill from the Director of the Congressional Budget Office:

                                     U.S. Congress,
                               Congressional Budget Office,
                                 Washington, DC, February 21, 2019.
Hon. Raul M. Grijalva,
Chairman, Committee on Natural Resources,
House of Representatives, Washington, DC.
    Dear Mr. Chairman: The Congressional Budget Office has 
prepared the enclosed cost estimate for S. 209, the PROGRESS 
for Indian Tribes Act.
    If you wish further details on this estimate, we will be 
pleased to provide them. The CBO staff contact is Jon Sperl.
            Sincerely,
                                         Phillip L. Swagel,
                                                          Director.
    Enclosure.

[GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT]
    

    S. 209 would modify eligibility requirements for tribes 
participating in the Tribal Self-Governance program, which 
authorizes Indian tribes to assume responsibility for certain 
programs, functions, and services or activities that would 
otherwise be carried out by the federal government for the 
benefit of tribal governments. The bill also would amend the 
process for negotiating agreements between the tribes and the 
Bureau of Indian Affairs (BIA) and would establish new 
guidelines for administering the program. In particular, the 
bill would allow tribes to correct significant errors (known as 
material exceptions) in annual financial audits when they apply 
to participate in the program. Under current law, a tribe must 
achieve three consecutive years of audits with no material 
exceptions in order to be eligible to enter into a self-
governance contract with the federal government.
    CBO assumes the bill will be enacted in fiscal year 2020. 
Under the bill, CBO expects 25 new tribes would enter into 
self-governance agreements with the federal government each 
year, beginning in 2021. (Currently, 285 tribes participate.) 
Using information from BIA, CBO estimates that the Office of 
Self Governance (OSG) would require additional employees over 
the 2020-2025 period to work on audits, contracts, and 
negotiations with tribes. At the same time, CBO expects that 
the staffing of BIA's Self-Determination program would decrease 
by a comparable number of employees because tribes would exit 
those agreements and enter into self-governance agreements.\1\
---------------------------------------------------------------------------
    \1\Under the Indian Self-Determination and Education Assistance 
Act, tribal governments may enter into either self-determination 
contracts or self-governance contracts with the Bureau of Indian 
Affairs to implement federal programs that provide services to tribal 
communities. Under self-governance contracts, tribes receive annual 
funding in the form of block grants that allow tribes greater autonomy 
in making decisions concerning the use of funds. Self-determination 
contracts govern individual programs and entail greater federal 
oversight.
---------------------------------------------------------------------------
    In addition, CBO estimates that OSG would need $500,000 
over two years to upgrade computers and software for the 
increased administrative activities required under the bill. 
CBO also estimates that the required rulemaking would cost $1 
million over two years, primarily to cover the costs of staff 
time, facilitators, and travel needs for tribes involved in the 
rulemaking.
    On March 25, 2019, CBO transmitted a cost estimate for S. 
209, the PROGRESS for Indian Tribes Act, as ordered reported by 
the Senate Committee on Indian Affairs on January 29, 2019. The 
two versions of the legislation are similar, and CBO's 
estimates of their budgetary effects are the same.
    The CBO staff contact for this estimate is Jon Sperl. The 
estimate was reviewed by H. Samuel Papenfuss, Deputy Director 
of Budget Analysis.
    2. General Performance Goals and Objectives. As required by 
clause 3(c)(4) of rule XIII, the general performance goals and 
objectives of this bill are to amend the Indian Self-
Determination and Education Assistance Act to provide further 
self-governance by Indian Tribes.

                           Earmark Statement

    This bill does not contain any Congressional earmarks, 
limited tax benefits, or limited tariff benefits as defined 
under clause 9(e), 9(f), and 9(g) of rule XXI of the Rules of 
the House of Representatives.

                 Unfunded Mandates Reform Act Statement

    This bill contains no unfunded mandates.

                           Existing Programs

    This bill does not establish or reauthorize a program of 
the federal government known to be duplicative of another 
program.

                  Applicability to Legislative Branch

    The Committee finds that the legislation does not relate to 
the terms and conditions of employment or access to public 
services or accommodations within the meaning of section 
102(b)(3) of the Congressional Accountability Act.

               Preemption of State, Local, or Tribal Law

    Any preemptive effect of this bill over state, local, or 
tribal law is intended to be consistent with the bill's 
purposes and text and the Supremacy Clause of Article VI of the 
U.S. Constitution.

         Changes in Existing Law Made by the Bill, as Reported

  In compliance with clause 3(e) of rule XIII of the Rules of 
the House of Representatives, changes in existing law made by 
the bill, as reported, are shown as follows (existing law 
proposed to be omitted is enclosed in black brackets, new 
matter is printed in italic, and existing law in which no 
change is proposed is shown in roman):

         INDIAN SELF-DETERMINATION AND EDUCATION ASSISTANCE ACT




           *       *       *       *       *       *       *
  Sec. 4. For purposes of this Act, the term--
          (a) ``construction programs'' means programs for the 
        planning, design, construction, repair, improvement, 
        and expansion of buildings or facilities, including, 
        but not limited to, housing, law enforcement and 
        detention facilities, sanitation and water systems, 
        roads, schools, administration and health facilities, 
        irrigation and agricultural work, and water 
        conservation, flood control, or port facilities;
          (b) ``contract funding base'' means the base level 
        from which contract funding needs are determined, 
        including all contract costs;
          (c) ``direct program costs'' means costs that can be 
        identified specifically with a particular contract 
        objective;
          (d) ``Indian'' means a person who is a member of an 
        Indian tribe;
          (e) [``Indian tribe'' means] ``Indian tribe''or 
        ``Indian Tribe'' means any Indian tribe, band, nation, 
        or other organized group or community, including any 
        Alaska Native village or regional or village 
        corporation as defined in or established pursuant to 
        the Alaska Native Claims Settlement Act (85 Stat. 688), 
        which is recognized as eligible for the special 
        programs and services provided by the United States to 
        Indians because of their status as Indians;
          (f) ``indirect costs'' means costs incurred for a 
        common or joint purpose benefiting more than one 
        contract objective, or which are not readily assignable 
        to the contract objectives specifically benefited 
        without effort disproportionate to the results 
        achieved;
          (g) ``indirect cost rate'' means the rate arrived at 
        through negotiation between an Indian tribe or tribal 
        organization and the appropriate Federal agency;
          (h) ``mature contract'' means a self-determination 
        contract that has been continuously operated by a 
        tribal organization for three or more years, and for 
        which there are no significant and material audit 
        exceptions in the annual financial audit of the tribal 
        organization: Provided, That upon the request of a 
        tribal organization or the tribal organization's Indian 
        tribe for purposes of section 102(a) of this Act, a 
        contract of the tribal organization which meets this 
        definition shall be considered to be a mature contract;
          (i) ``Secretary'', unless otherwise designated, means 
        either the Secretary of Health and Human Services or 
        the Secretary of the Interior or both;
          [(j) ``self-determination contract'' means a contract 
        (or grant or cooperative agreement utilized under 
        section 9 of this Act) entered into under title I of 
        this Act between a tribal organization and the 
        appropriate Secretary for the planning, conduct and 
        administration of programs or services which are 
        otherwise provided to Indian tribes and their members 
        pursuant to Federal law: Provided, That except as 
        provided the last proviso in section 105(a) of this 
        Act, no contract (or grant or cooperative agreement 
        utilized under section 9 of this Act) entered into 
        under title I of this Act shall be construed to be a 
        procurement contract;]
  (j) ``self-determination contract'' means a contract entered 
into under title I (or a grant or cooperative agreement used 
under section 9) between a Tribal organization and the 
appropriate Secretary for the planning, conduct, and 
administration of programs or services that are otherwise 
provided to Indian Tribes and members of Indian Tribes pursuant 
to Federal law, subject to the condition that, except as 
provided in section 105(a)(3), no contract entered into under 
title I (or grant or cooperative agreement used under section 
9) shall be--
          (1) considered to be a procurement contract; or
          (2) except as provided in section 107(a)(1), subject 
        to any Federal procurement law (including regulations);
          (k) ``State education agency'' means the State board 
        of education or other agency or officer primarily 
        responsible for supervision by the State of public 
        elementary and secondary schools, or, if there is no 
        such officer or agency, an officer or agency designated 
        by the Governor or by State law;
          (l) [``tribal organization'' means] ``Tribal 
        Organization''or ``tribal organization''means the 
        recognized governing body of any Indian tribe; any 
        legally established organization of Indians which is 
        controlled, sanctioned, or chartered by such governing 
        body or which is democratically elected by the adult 
        members of the Indian community to be served by such 
        organization and which includes the maximum 
        participation of Indians in all phases of its 
        activities: Provided, That in any case where a contract 
        is let or grant made to an organization to perform 
        services benefiting more than one Indian tribe, the 
        approval of each such Indian tribe shall be a 
        prerequisite to the letting or making of such contract 
        or grant; and
  (m) ``construction contract'' means a fixed-price or cost-
reimbursement self-determination contract for a construction 
project, except that such term does not include any contract--
          (1) that is limited to providing planning services 
        and construction management services (or a combination 
        of such services);
          (2) for the Housing Improvement Program or roads 
        maintenance program of the Bureau of Indian Affairs 
        administered by the Secretary of the Interior; or
          (3) for the health facility maintenance and 
        improvement program administered by the Secretary of 
        Health and Human Services.

                    reporting and audit requirements

  Sec. 5. (a)(1) Each recipient of Federal financial assistance 
under this Act shall keep such records as the appropriate 
Secretary shall prescribe by regulation promulgated under 
sections 552 and 553 of title 5, United States Code, including 
records which fully disclose--
          (A) the amount and disposition by such recipient of 
        the proceeds of such assistance,
          (B) the cost of the project or undertaking in 
        connection with which such assistance is given or used;
          (C) the amount of that portion of the cost of the 
        project or undertaking supplied by other sources, and
          (D) such other information as will facilitate an 
        effective audit.
  (2) For the purposes of this subsection, such records for a 
mature contract shall consist of quarterly financial statements 
for the purpose of accounting for Federal funds, the annual 
single-agency audit required by chapter 75 of title 31, United 
States Code and a brief annual program report.
  (b) The Comptroller General and the appropriate Secretary, or 
any of their duly authorized representatives, shall, until the 
expiration of three years [after completion of the project or 
undertaking referred to in the preceding subsection of this 
section] after the retention period for the report that is 
submitted to the Secretary under subsection (a), have access 
(for the purpose of audit and examination) to any books, 
documents, papers, and records of such recipients which in the 
opinion of the Comptroller General or the appropriate Secretary 
may be related or pertinent to the grants, contracts, 
subcontracts, subgrants, or other arrangements referred to in 
the preceding subsection. The retention period shall be defined 
in regulations promulgated by the Secretary pursuant to section 
413.
  (c) Each recipient of Federal financial assistance referred 
to in subsection (a) of this section shall make such reports 
and information available to the Indian people served or 
represented by such recipient as and in a manner determined to 
be adequate by the appropriate Secretary.
  (d) Except as provided in section 8 or 106(a)(3) of this Act, 
funds paid to a financial assistance recipient referred to in 
subsection (a) of this section and not expended or used for the 
purposes for which paid shall be repaid to the Treasury of the 
United States through the respective Secretary.
  (e) The Secretary shall report annually in writing to each 
tribe regarding projected and actual staffing levels, funding 
obligations, and expenditures for programs operated directly by 
the Secretary serving that tribe.
  (f)(1) For each fiscal year during which an Indian tribal 
organization receives or expends funds pursuant to a contract 
entered into, or grant made, under this Act, if the Indian 
Tribal organization expends $500,000 or more in Federal awards 
during such fiscal year the tribal organization that requested 
such contract or grant shall submit to the appropriate 
Secretary a single-agency audit report required by chapter 75 
of title 31, United States Code.
  (2) In addition to submitting a single-agency audit report 
pursuant to paragraph (1), a tribal organization referred to in 
such paragraph shall submit such additional information 
concerning the conduct of the program, function, service, or 
activity carried out pursuant to the contract or grant that is 
the subject of the report as the tribal organization may 
negotiate with the Secretary.
  (3) Any disagreement over reporting requirements shall be 
subject to the declination criteria and procedures set forth in 
section 102.

           *       *       *       *       *       *       *


TITLE I--INDIAN SELF-DETERMINATION ACT

           *       *       *       *       *       *       *


               contracts by the secretary of the interior

  Sec. 102. (a)(1) The Secretary is directed, upon the request 
of any Indian tribe by tribal resolution, to enter into a self-
determination contract or contracts with a tribal organization 
to plan, conduct, and administer programs or portions thereof, 
including construction programs--
          (A) provided for in the Act of April 16, 1934 (48 
        Stat. 596), as amended;
          (B) which the Secretary is authorized to administer 
        for the benefit of Indians under the Act of November 2, 
        1921 (42 Stat. 208), and any Act subsequent thereto;
          (C) provided by the Secretary of Health and Human 
        Services under the Act of August 5, 1954 (68 Stat. 
        674), as amended;
          (D) administered by the Secretary for the benefit of 
        Indians for which appropriations are made to agencies 
        other than the Department of Health and Human Services 
        or the Department of the Interior; and
          (E) for the benefit of Indians because of their 
        status as Indians without regard to the agency or 
        office of the Department of Health and Human Services 
        or the Department of the Interior within which it is 
        performed.
The programs, functions, services, or activities that are 
contracted under this paragraph shall include administrative 
functions of the Department of the Interior and the Department 
of Health and Human Services (whichever is applicable) that 
support the delivery of services to Indians, including those 
administrative activities supportive of, but not included as 
part of, the service delivery programs described in this 
paragraph that are otherwise contractable. The administrative 
functions referred to in the preceding sentence shall be 
contractable without regard to the organizational level within 
the Department that carries out such functions.
  (2) If so authorized by an Indian tribe under paragraph (1) 
of this subsection, a tribal organization may submit a proposal 
for a self-determination contract, or a proposal to amend or 
renew a self-determination contract, to the Secretary for 
review. Subject to the provisions of paragraph (4), the 
Secretary shall, within ninety days after receipt of the 
proposal, approve the proposal and award the contract unless 
the Secretary provides written notification to the applicant 
that contains a specific finding that clearly demonstrates 
that, or that is supported by a controlling legal authority 
that--
          (A) the service to be rendered to the Indian 
        beneficiaries of the particular program or function to 
        be contracted will not be satisfactory;
          (B) adequate protection of trust resources is not 
        assured;
          (C) the proposed project or function to be contracted 
        for cannot be properly completed or maintained by the 
        proposed contract;
          (D) the amount of funds proposed under the contract 
        is in excess of the applicable funding level for the 
        contract, as determined under section 106(a); or
          (E) the program, function, service, or activity (or 
        portion thereof) that is the subject of the proposal is 
        beyond the scope of programs, functions, services, or 
        activities covered under paragraph (1) because the 
        proposal includes activities that cannot lawfully be 
        carried out by the contractor.
Notwithstanding any other provision of law, the Secretary may 
extend or otherwise alter the 90-day period specified in the 
second sentence of this subsection, if before the expiration of 
such period, the Secretary obtains the voluntary and express 
written consent of the tribe or tribal organization to extend 
or otherwise alter such period. The contractor shall include in 
the proposal of the contractor the standards under which the 
tribal organization will operate the contracted program, 
service, function, or activity, including in the area of 
construction, provisions regarding the use of licensed and 
qualified architects, applicable health and safety standards, 
adherence to applicable Federal, State, local, or tribal 
building codes and engineering standards. The standards 
referred to in the preceding sentence shall ensure structural 
integrity, accountability of funds, adequate competition for 
subcontracting under tribal or other applicable law, the 
commencement, performance, and completion of the contract, 
adherence to project plans and specifications (including any 
applicable Federal construction guidelines and manuals), the 
use of proper materials and workmanship, necessary inspection 
and testing, and changes, modifications, stop work, and 
termination of the work when warranted.
  (3) Upon the request of a tribal organization that operates 
two or more mature self-determination contracts, those 
contracts may be consolidated into one single contract.
  (4) The Secretary shall approve any severable portion of a 
contract proposal that does not support a declination finding 
described in paragraph (2). If the Secretary determines under 
such paragraph that a contract proposal--
          (A) proposes in part to plan, conduct, or administer 
        a program, function, service, or activity that is 
        beyond the scope of programs covered under paragraph 
        (1), or
          (B) proposes a level of funding that is in excess of 
        the applicable level determined under section 106(a),
subject to any alteration in the scope of the proposal that the 
Secretary and the tribal organization agree to, the Secretary 
shall, as appropriate, approve such portion of the program, 
function, service, or activity as is authorized under paragraph 
(1) or approve a level of funding authorized under section 
106(a). If a tribal organization elects to carry out a 
severable portion of a contract proposal pursuant to this 
paragraph, subsection (b) shall only apply to the portion of 
the contract that is declined by the Secretary pursuant to this 
subsection.
  (b) Whenever the Secretary declines to enter into a self-
determination contract or contracts pursuant to subsection (a) 
of this section, the Secretary shall--
          (1) state any objections in writing to the tribal 
        organization,
          (2) provide assistance to the tribal organization to 
        overcome the stated objections, and
          (3) provide the tribal organization with a hearing on 
        the record with the right to engage in full discovery 
        relevant to any issue raised in the matter and the 
        opportunity for appeal on the objections raised, under 
        such rules and regulations as the Secretary may 
        promulgate, except that the tribe or tribal 
        organization may, in lieu of filing such appeal, 
        exercise the option to initiate an action in a Federal 
        district court and proceed directly to such court 
        pursuant to section 110(a).
  (c)(1) Beginning in 1990, the Secretary shall be responsible 
for obtaining or providing liability insurance or equivalent 
coverage, on the most cost-effective basis, for Indian tribes, 
tribal organizations, and tribal contractors carrying out 
contracts, grant agreements and cooperative agreements pursuant 
to this Act. In obtaining or providing such coverage, the 
Secretary shall take into consideration the extent to which 
liability under such contracts or agreements are covered by the 
Federal Tort Claims Act.
  (2) In obtaining or providing such coverage, the Secretary 
shall, to the greatest extent practicable, give a preference to 
coverage underwritten by Indian-owned [economic enterprises as 
defined in section 3 of the Indian Financing Act of 1974 (88 
Stat. 77; 25 U.S.C. 1451 et seq.), except that] economic 
enterprises (as defined in section 3 of the Indian Financing 
Act of 1974 (25 U.S.C. 1452)), except that, for the purposes of 
this subsection, such enterprises may include non-profit 
corporations.
  (3)(A) Any policy of insurance obtained or provided by the 
Secretary pursuant to this subsection shall contain a provision 
that the insurance carrier shall waive any right it may have to 
raise as a defense the sovereign immunity of an Indian tribe 
from suit, but tha such waiver shall extend only to claims the 
amount and nature of which are within the coverage and limits 
of the policy and shall not authorize or empower such insurance 
carrier to waive or otherwise limit the tribe's sovereign 
immunity outside or beyond the coverage or limits of the policy 
of insurance.
  (B) No waiver of the sovereign immunity of an Indian tribe 
pursuant to this paragraph shall include a waiver to the extent 
of any potential liability for interest prior to judgment or 
for punitive damages or for any other limitation on liability 
imposed by the law of the State in which the alleged injury 
occurs.
  (d) For purposes of section 224 of the Public Health Service 
Act of July 1, 1944 (42 U.S.C. 233(a)), as amended by section 4 
of the Act of December 31, 1970 (84 Stat. 1870), with respect 
to claims by any person, initially filed on or after December 
22, 1987, whether or not such person is an Indian or Alaska 
Native or is served on a fee basis or under other circumstances 
as permitted by Federal law or regulations for personal injury, 
including death, resulting from the performance prior to, 
including, or after December 22, 1987, of medical, surgical, 
dental, or related functions, including the conduct of clinical 
studies or investigations, or for purposes of section 2679, 
title 28, United States Code, with respect to claims by any 
such person, on or after the date of the enactment of the 
Indian Self-Determination and Education Assistance Act 
Amendments of 1990, for personal injury, including death, 
resulting from the operation of an emergency motor vehicle, an 
Indian tribe, a tribal organization or Indian contractor 
carrying out a contract, grant agreement, or cooperative 
agreement under sections 102 or 103 of this Act is deemed to be 
part of the Public Health Service in the Department of Health 
and Human Services while carrying out any such contract or 
agreement and its employees (including those acting on behalf 
of the organization or contractor as provided in section 2671 
of title 28, United States Code, and including an individual 
who provides health care services pursuant to a personal 
services contract with a tribal organization for the provision 
of services in any facility owned, operated, or constructed 
under the jurisdiction of the Indian Health Service) are deemed 
employees of the Service while acting within the scope of their 
employment in carrying out the contract or agreement: Provided, 
That such employees shall be deemed to be acting within the 
scope of their employment in carrying out such contract or 
agreement when they are required, by reason of such employment, 
to perform medical, surgical, dental or related functions at a 
facility other than the facility operated pursuant to such 
contract or agreement, but only if such employees are not 
compensated for the performance of such functions by a person 
or entity other than such Indian tribe, tribal organization or 
Indian contractor.
  (e)(1) With respect to any hearing or appeal conducted 
pursuant to subsection (b)(3) or any civil action conducted 
pursuant to section 110(a), the Secretary shall have the burden 
of proof to establish by clearly demonstrating the validity of 
the grounds for declining the contract proposal (or portion 
thereof).
  (2) Notwithstanding any other provision of law, a decision by 
an official of the Department of the Interior or the Department 
of Health and Human Services, as appropriate (referred to in 
this paragraph as the ``Department'') that constitutes final 
agency action and that relates to an appeal within the 
Department that is conducted under subsection (b)(3) shall be 
made either--
          (A) by an official of the Department who holds a 
        position at a higher organizational level within the 
        Department than the level of the departmental agency 
        (such as the Indian Health Service or the Bureau of 
        Indian Affairs) in which the decision that is the 
        subject of the appeal was made; or
          (B) by an administrative judge.
  (f) Good Faith Requirement.--In the negotiation of contracts 
and funding agreements, the Secretary shall--
          (1) at all times negotiate in good faith to maximize 
        implementation of the self-determination policy; and
          (2) carry out this Act in a manner that maximizes the 
        policy of Tribal self-determination, in a manner 
        consistent with--
                  (A) the purposes specified in section 3; and
                  (B) the PROGRESS for Indian Tribes Act.
  (g) Rule of Construction.--Subject to section 101(a) of the 
PROGRESS for Indian Tribes Act, each provision of this Act and 
each provision of a contract or funding agreement shall be 
liberally construed for the benefit of the Indian Tribe 
participating in self-determination, and any ambiguity shall be 
resolved in favor of the Indian Tribe.

           *       *       *       *       *       *       *


                       ADMINISTRATIVE PROVISIONS

  Sec. 105. (a)(1) Notwithstanding any other provision of law, 
subject to paragraph (3), the contracts and cooperative 
agreements entered into with tribal organizations pursuant to 
section 102 shall not be subject to Federal contracting or 
cooperative agreement laws (including any regulations), except 
to the extent that such laws expressly apply to Indian tribes.
  (2) Program standards applicable to a nonconstruction self-
determination contract shall be set forth in the contract 
proposal and the final contract of the tribe or tribal 
organization.
  (3)(A) With respect to a construction contract (or a 
subcontract of such a construction contract), the provisions of 
the Office of Federal Procurement Policy Act (41 U.S.C. 401 et 
seq.) and the regulations relating to acquisitions promulgated 
under such Act shall apply only to the extent that the 
application of such provision to the construction contract (or 
subcontract) is--
          (i) necessary to ensure that the contract may be 
        carried out in a satisfactory manner;
          (ii) directly related to the construction activity; 
        and
          (iii) not inconsistent with this Act.
  (B) A list of the Federal requirements that meet the 
requirements of clauses (i) through (iii) of subparagraph (A) 
shall be included in an attachment to the contract pursuant to 
negotiations between the Secretary and the tribal organization.
  (C)(i) Except as provided in subparagraph (B), no Federal law 
listed in clause (ii) or any other provision of Federal law 
(including an Executive order) relating to acquisition by the 
Federal Government shall apply to a construction contract that 
a tribe or tribal organization enters into under this Act, 
unless expressly provided in such law.
  (ii) The laws listed in this paragraph are as follows:
          (I) The Federal Property and Administrative Services 
        Act of 1949 (40 U.S.C. 471 et seq.).
          (II) Section 3709 of the Revised Statutes.
          (III) Section 9(c) of the Act of Aug. 2, 1946 (60 
        Stat. 809, chapter 744).
          (IV) Title III of the Federal Property and 
        Administrative Services Act of 1949 (63 Stat. 393 et 
        seq., chapter 288).
          (V) Section 13 of the Act of Oct. 3, 1944 (58 Stat. 
        770; chapter 479).
          (VI) Chapters 21, 25, 27, 29, and 31 of title 44, 
        United States Code.
          (VII) Section 2 of the Act of June 13, 1934 (48 Stat 
        948, chapter 483).
          (VIII) Sections 1 through 12 of the Act of June 30, 
        1936 (49 Stat. 2036 et seq. chapter 881).
          (IX) The Service Control Act of 1965 (41 U.S.C. 351 
        et seq.).
          (X) The Small Business Act (15 U.S.C. 631 et seq.).
          (XI) Executive Order Nos. 12138, 11246, 11701 and 
        11758.
  (b) Payments of any grants or under any contracts [pursuant 
to Sections 102 and 103 of this Act] pursuant to sections 102 
and 103 may be made in advance or by way of reimbursement and 
in such installments and on such conditions as the appropriate 
Secretary deems necessary to carry out the purposes of this 
title. The transfer of funds shall be scheduled consistent with 
program requirements and applicable Treasury regulations, so as 
to minimize the time elapsing between the transfer of such 
funds from the United States Treasury and the disbursement 
thereof by the tribal organization, whether such disbursement 
occurs prior to or subsequent to such transfer of funds. Tribal 
organizations shall not be held accountable for interest earned 
on such funds, pending their disbursement by such organization.
  (c)(1) A self-determination contract shall be--
          (A) for a term not to exceed three years in the case 
        of other than a mature contract, unless the appropriate 
        Secretary and the tribe agree that a longer term would 
        be advisable, and
                  (B) for a definite or an indefinite term, as 
                requested by the tribe (or, to the extent not 
                limited by tribal resolution, by the tribal 
                organization), in the case of a mature 
                contract.
The amounts of such contracts shall be subject to the 
availability of appropriations.
  (2) The amounts of such contracts may be renegotiated 
annually to reflect changed circumstances and factors, 
including, but not limited to, cost increases beyond the 
control of the tribal organization.
  (d)(1) Beginning in fiscal year 1990, upon the election of a 
tribal organization, the Secretary shall use the calendar year 
as the basis for any contracts or agreements under this Act, 
unless the Secretary and the Indian tribe or tribal 
organization agree on a different period.
  (2) The Secretary shall, on or before April 1 of each year 
beginning in 1992, submit a report to the Congress on the 
amounts of any additional obligation authority needed to 
implement this subsection in the next following fiscal year.
  (e) If an Indian tribe, or a tribal organization authorized 
by a tribe, requests retrocession of the appropriate Secretary 
for any contract or portion of a contract entered into pursuant 
to this Act, unless the tribe or tribal organization rescinds 
the request for retrocession, such retrocession shall become 
effective on--
          (1) the earlier of--
                  (A) the date that is 1 year after the date 
                the Indian tribe or tribal organization submits 
                such request; or
                  (B) the date on which the contract expires; 
                or
          (2) such date as may be mutually agreed by the 
        Secretary and the Indian tribe.
  (f) In connection with any self-determination contract or 
grant made pursuant to section 102 or 103 of this Act, the 
appropriate Secretary may--
          (1) permit an Indian tribe or tribal organization in 
        carrying out such contract or grant, to utilize 
        existing school buildings, hospitals, and other 
        facilities and all equipment therein or appertaining 
        thereto and other personal property owned by the 
        Government within the Secretary's jurisdiction under 
        such terms and conditions as may be agreed upon for 
        their use and maintenance;
          (2) donate to an Indian tribe or tribal organization 
        title to any personal or real property found to be 
        excess to the needs of the Bureau of Indian Affairs, 
        the Indian Health Service, or the General Services 
        Administration, except that--
                  (A) subject to the provisions of subparagraph 
                (B), title to property and equipment furnished 
                by the Federal Government for use in the 
                performance of the contract or purchased with 
                funds under any self-determination contract or 
                grant agreement shall, unless otherwise 
                requested by the tribe or tribal organization, 
                vest in the appropriate tribe or tribal 
                organization;
                  (B) if property described in subparagraph (A) 
                has a value in excess of $5,000 at the time of 
                the retrocession, rescission, or termination of 
                the self-determination contract or grant 
                agreement, at the option of the Secretary, upon 
                the retrocession, rescission, or termination, 
                title to such property and equipment shall 
                revert to the Department of the Interior or the 
                Department of Health and Human Services, as 
                appropriate; and
                  (C) all property referred to in subparagraph 
                (A) shall remain eligible for replacement on 
                the same basis as if title to such property 
                were vested in the United States; and
          (3) acquire excess or surplus Government personal or 
        real property for donation to an Indian tribe or tribal 
        organization if the Secretary determines the property 
        is appropriate for use by the tribe or tribal 
        organization for a purpose for which a self-
        determination contract or grant agreement is authorized 
        under this Act.
  (g) The contracts authorized under section 102 of this Act 
and grants pursuant to section 103 of this Act may include 
provisions for the performance of personal services which would 
otherwise be performed by Federal employees including, but in 
no way limited to, functions such as determination of 
eligibility of applicants for assistance, benefits, or 
services, and the extent or amount of such assistance, 
benefits, or services to be provided and the provisions of such 
assistance, benefits, or services, all in accordance with the 
terms of the contract or grant and applicable rules and 
regulations of the appropriate Secretary: Provided, That the 
Secretary shall not make any contract which would impair his 
ability to discharge his trust responsibilities to any Indian 
tribe or individuals.
  (h) Contracts and grants with tribal organizations pursuant 
to sections 102 and 103 of this Act shall include provisions to 
assure the fair and uniform provision by such tribal 
organizations of the services and assistance they provide to 
Indians under such contracts and grants.
  (i)(1) If a self-determination contract requires the 
Secretary to divide the administration of a program that has 
previously been administered for the benefit of a greater 
number of tribes than are represented by the tribal 
organization that is a party to the contract, the Secretary 
shall take such action as may be necessary to ensure that 
services are provided to the tribes not served by a self-
determination contract, including program redesign in 
consultation with the tribal organization and all affected 
tribes.
  (2) Nothing in this title shall be construed to limit or 
reduce in any way the funding for any program, project, or 
activity serving a tribe under this or other applicable Federal 
law. Any tribe or tribal organization that alleges that a self-
determination contract is in violation of this section may 
apply the provisions of section 110.
  (j) Upon providing notice to the Secretary, a tribal 
organization that carries out a nonconstruction self-
determination contract may propose a redesign of a program, 
activity, function, or service carried out by the tribal 
organization under the contract, including any nonstatutory 
program standard, in such manner as to best meet the local 
geographic, demographic, economic, cultural, health, and 
institutional needs of the Indian people and tribes served 
under the contract. The Secretary shall evaluate any proposal 
to redesign any program, activity, function, or service 
provided under the contract. With respect to declining to 
approve a redesigned program, activity, function, or service 
under this subsection, the Secretary shall apply the criteria 
and procedures set forth in section 102.
  (k) For purposes of section 201(a) of the Federal Property 
and Administrative Services Act of 1949 (40 U.S.C. 481(a)) 
(relating to Federal sources of supply, including lodging 
providers, airlines and other transportation providers), a 
tribal organization carrying out a contract, grant, or 
cooperative agreement under this Act shall be deemed an 
executive agency and part of the Indian Health Service when 
carrying out such contract, grant, or agreement and the 
employees of the tribal organization shall be eligible to have 
access to such sources of supply on the same basis as employees 
of an executive agency have such access. For purposes of 
carrying out such contract, grant, or agreement, the Secretary 
shall, at the request of an Indian tribe, enter into an 
agreement for the acquisition, on behalf of the Indian tribe, 
of any goods, services, or supplies available to the Secretary 
from the General Services Administration or other Federal 
agencies that are not directly available to the Indian tribe 
under this section or under any other Federal law, including 
acquisitions from prime vendors. All such acquisitions shall be 
undertaken through the most efficient and speedy means 
practicable, including electronic ordering arrangements.
  (l)(1) Upon the request of an Indian tribe or tribal 
organization, the Secretary shall enter into a lease with the 
Indian tribe or tribal organization that holds title to, a 
leasehold interest in, or a trust interest in, a facility used 
by the Indian tribe or tribal organization for the 
administration and delivery of services under this Act.
  (2) The Secretary shall compensate each Indian tribe or 
tribal organization that enters into a lease under paragraph 
(1) for the use of the facility leased for the purposes 
specified in such paragraph. Such compensation may include 
rent, depreciation based on the useful life of the facility, 
principal and interest paid or accrued, operation and 
maintenance expenses, and such other reasonable expenses that 
the Secretary determines, by regulation, to be allowable.
  (m)(1) Each construction contract requested, approved, or 
awarded under this Act shall be subject to--
          (A) except as otherwise provided in this Act, the 
        provisions of this Act, other than sections 102(a)(2), 
        106(l), 108 and 109; and
          (B) section 314 of the Department of the Interior and 
        Related Agencies Appropriations Act, 1991 (104 Stat. 
        1959).
  (2) In providing technical assistance to tribes and tribal 
organizations in the development of construction contract 
proposals, the Secretary shall provide, not later than 30 days 
after receiving a request from a tribe or tribal organization, 
all information available to the Secretary regarding the 
construction project, including construction drawings, maps, 
engineering reports, design reports, plans of requirements, 
cost estimates, environmental assessments or environmental 
impact reports, and archaeological reports.
  (3) Prior to finalizing a construction contract proposal 
pursuant to section 102(a), and upon request of the tribe or 
tribal organization that submits the proposal, the Secretary 
shall provide for a precontract negotiation phase in the 
development of a contract proposal. Such phase shall include, 
at a minimum, the following elements:
          (A) The provision of technical assistance pursuant to 
        section 103 and paragraph (2).
          (B) A joint scoping session between the Secretary and 
        the tribe or tribal organization to review all plans, 
        specifications, engineering reports, cost estimates, 
        and other information available to the parties, for the 
        purpose of identifying all areas of agreement and 
        disagreement.
          (C) An opportunity for the Secretary to revise the 
        plans, designs, or cost estimates of the Secretary in 
        response to concerns raised, or information provided 
        by, the tribe or tribal organization.
          (D) A negotiation session during which the Secretary 
        and the tribe or tribal organization shall seek to 
        develop a mutually agreeable contract proposal.
          (E) Upon the request of the tribe or tribal 
        organization, the use of an alternative dispute 
        resolution mechanism to seek resolution of all 
        remaining areas of disagreement pursuant to the dispute 
        resolution provisions under subchapter IV of chapter 5 
        of title 5, United States Code.
          (F) The submission to the Secretary by the tribe or 
        tribal organization of a final contract proposal 
        pursuant to section 102(a).
  (4)(A) Subject to subparagraph (B), in funding a fixed-price 
construction contract pursuant to section 106(a), the Secretary 
shall provide for the following:
          (i) The reasonable costs to the tribe or tribal 
        organization for general administration incurred in 
        connection with the project that is the subject of the 
        contract.
          (ii) The ability of the contractor that carries out 
        the construction contract to make a reasonable profit, 
        taking into consideration the risks associated with 
        carrying out the contract and other relevant 
        considerations.
  (B) In establishing a contract budget for a construction 
project, the Secretary shall not be required to separately 
identify the components described in clauses (i) and (ii) of 
subparagraph (A).
  (C) The total amount awarded under a construction contract 
shall reflect an overall fair and reasonable price to the 
parties, including the following costs:
          (i) The reasonable costs to the tribal organization 
        of performing the contract, taking into consideration 
        the terms of the contract and the requirements of this 
        Act and any other applicable law.
          (ii) The costs of preparing the contract proposal and 
        supporting cost data.
          (iii) The costs associated with auditing the general 
        and administrative costs of the tribal organization 
        associated with the management of the construction 
        contract.
          (iv) In the case of a fixed-price contract, a fair 
        profit determined by taking into consideration the 
        relevant risks and local market conditions.
          (v) If the Secretary and the tribe or tribal 
        organization are unable to develop a mutually agreeable 
        construction contract proposal pursuant to the 
        procedures set forth in this subsection, the tribe or 
        tribal organization may submit a final contract 
        proposal to the Secretary. Not later than 30 days after 
        receiving such final contract proposal, the Secretary 
        shall approve the contract proposal and award the 
        contract, unless, during such period the Secretary 
        declines the proposal pursuant to sections 102(a)(2) 
        and 102(b) of section 102 (including providing 
        opportunity for an appeal pursuant to section 102(b)).
  (n) Notwithstanding any other provision of law, the rental 
rates for housing provided to an employee by the Federal 
Government in Alaska pursuant to a self-determination contract 
shall be determined on the basis of--
          (1) the reasonable value of the quarters and 
        facilities (as such terms are defined under section 
        5911 of title 5, United States Code) to such employee, 
        and
          (2) the circumstances under which such quarters and 
        facilities are provided to such employee,
as based on the cost of comparable private rental housing in 
the nearest established community with a year-round population 
of 1,500 or more individuals.
  (o) Patient Records.--
          (1) In general.--At the option of an Indian tribe or 
        tribal organization, patient records may be deemed to 
        be Federal records under those provisions of title 44, 
        United States Code, that are commonly referred to as 
        the ``Federal Records Act of 1950'' for the limited 
        purposes of making such records eligible for storage by 
        Federal Records Centers to the same extent and in the 
        same manner as other Department of Health and Human 
        Services patient records.
          (2) Treatment of records.--Patient records that are 
        deemed to be Federal records under those provisions of 
        title 44, United States Code, that are commonly 
        referred to as the ``Federal Records Act of 1950'' 
        pursuant to this subsection shall not be considered 
        Federal records for the purposes of chapter 5 of title 
        5, United States Code.
  (p) Interpretation by Secretary.--Except as otherwise 
provided by law, the Secretary shall interpret all Federal laws 
(including regulations) and Executive orders in a manner that 
facilitates, to the maximum extent practicable--
          (1) the inclusion in self-determination contracts and 
        funding agreements of--
                  (A) applicable programs, services, functions, 
                and activities (or portions thereof); and
                  (B) funds associated with those programs, 
                services, functions, and activities;
          (2) the implementation of self-determination 
        contracts and funding agreements; and
          (3) the achievement of Tribal health objectives.
  (q)(1) Technical assistance for internal controls.--In 
considering proposals for, amendments to, or in the course of, 
a contract under this title and compacts under titles IV and V 
of this Act, if the Secretary determines that the Indian Tribe 
lacks adequate internal controls necessary to manage the 
contracted program or programs, the Secretary shall, as soon as 
practicable, provide the necessary technical assistance to 
assist the Indian Tribe in developing adequate internal 
controls. As part of that technical assistance, the Secretary 
and the Tribe shall develop a plan for assessing the subsequent 
effectiveness of such technical assistance. The inability of 
the Secretary to provide technical assistance or lack of a plan 
under this subsection shall not result in the reassumption of 
an existing agreement, contract, or compact, or declination or 
rejection of a new agreement, contract, or compact.
  (2) The Secretary shall prepare a report to be included in 
the information required for the reports under sections 
412(b)(2)(A) and 514(b)(2)(A). The Secretary shall include in 
this report, in the aggregate, a description of the internal 
controls that were inadequate, the technical assistance 
provided, and a description of Secretarial actions taken to 
address any remaining inadequate internal controls after the 
provision of technical assistance and implementation of the 
plan required by paragraph (1).
  Sec. 106. (a)(1) The amount of funds provided under the terms 
of self-determination contracts entered into pursuant to this 
Act shall not be less than the appropriate Secretary would have 
otherwise provided for the operation of the programs or 
portions thereof for the period covered by the contract, 
without regard to any organizational level within the 
Department of the Interior or the Department of Health and 
Human Services, as appropriate, at which the program, function, 
service, or activity or portion thereof, including supportive 
administrative functions that are otherwise contractable, is 
operated.
  (2) There shall be added to the amount required by paragraph 
(1) contract support costs which shall consist of an amount for 
the reasonable costs for activities which must be carried on by 
a tribal organization as a contractor to ensure compliance with 
the terms of the contract and prudent management, but which--
          (A) normally are not carried on by the respective 
        Secretary in his direct operation of the program; or
          (B) are provided by the Secretary in support of the 
        contracted program from resources other than those 
        under contract.
  (3)(A) The contract support costs that are eligible costs for 
the purposes of receiving funding under this Act shall include 
the costs of reimbursing each tribal contractor for reasonable 
and allowable costs of--
          (i) direct program expenses for the operation of the 
        Federal program that is the subject of the contract[, 
        and]; and
          (ii) any additional administrative or other [expense 
        related to the overhead incurred] expense incurred by 
        the governing body of the Indian Tribe or Tribal 
        organization and any overhead expense incurred by the 
        tribal contractor in connection with the operation of 
        the Federal program, function, service, or activity 
        pursuant to the contract,
except that such funding shall not duplicate any funding 
provided under section 106(a)(1).
          (B) In calculating the reimbursement rate for 
        expenses described in subparagraph (A)(ii), not less 
        than 50 percent of the expenses described in 
        subparagraph (A)(ii) that are incurred by the governing 
        body of an Indian Tribe or Tribal organization relating 
        to a Federal program, function, service, or activity 
        carried out pursuant to the contract shall be 
        considered to be reasonable and allowable.
  [(B)] (C) On an annual basis, during such period as a tribe 
or tribal organization operates a Federal program, function, 
service, or activity pursuant to a contract entered into under 
this Act, the tribe or tribal organization shall have the 
option to negotiate with the Secretary the amount of funds that 
the tribe or tribal organization is entitled to receive under 
such contract pursuant to this paragraph.
  (4) For each fiscal year during which a self-determination 
contract is in effect, any savings attributable to the 
operation of a Federal program, function, service, or activity 
under a self-determination contract by a tribe or tribal 
organization (including a cost reimbursement construction 
contract) shall--
          (A) be used to provide additional services or 
        benefits under the contract; or
          (B) be expended by the tribe or tribal organization 
        in the succeeding fiscal year, as provided in section 
        8.
  (5) Subject to paragraph (6), during the initial year that a 
self-determination contract is in effect, the amount required 
to be paid under paragraph (2) shall include startup costs 
consisting of the reasonable costs that have been incurred or 
will be incurred on a one-time basis pursuant to the contract 
necessary--
          (A) to plan, prepare for, and assume operation of the 
        program, function, service, or activity that is the 
        subject of the contract; and
          (B) to ensure compliance with the terms of the 
        contract and prudent management.
  (6) Costs incurred before the initial year that a self-
determination contract is in effect may not be included in the 
amount required to be paid under paragraph (2) if the Secretary 
does not receive a written notification of the nature and 
extent of the costs prior to the date on which such costs are 
incurred.
  (b) The amount of funds required by subsection (a)--
          (1) shall not be reduced to make funding available 
        for contract monitoring or administration by the 
        Secretary;
          (2) shall not be reduced by the Secretary in 
        subsequent years except pursuant to--
                  (A) a reduction in appropriations from the 
                previous fiscal year for the program or 
                function to be contracted;
                  (B) a directive in the statement of the 
                managers accompanying a conference report on an 
                appropriation bill or continuing resolution;
                  (C) a tribal authorization;
                  (D) a change in the amount of pass-through 
                funds needed under a contract; or
                  (E) completion of a contracted project, 
                activity, or program;
          (3) shall not be reduced by the Secretary to pay for 
        Federal functions, including, but not limited to, 
        Federal pay costs, Federal employee retirement 
        benefits, automated data processing, contract technical 
        assistance or contract monitoring;
          (4) shall not be reduced by the Secretary to pay for 
        the costs of Federal personnel displaced by a self-
        determination contract; and
          (5) may, at the request of the tribal organization, 
        be increased by the Secretary if necessary to carry out 
        this Act or as provided in section 105(c).
Notwithstanding any other provision in this Act, the provision 
of funds under this Act is subject to the availability of 
appropriations and the Secretary is not required to reduce 
funding for programs, projects, or activities serving a tribe 
to make funds available to another tribe or tribal organization 
under this Act.
  (c) Annual Reports.--Not later than May 15 of each year, the 
Secretary shall prepare and submit to Congress an annual report 
on the implementation of this Act. Such report shall include--
          (1) an accounting of the total amounts of funds 
        provided for each program and the budget activity for 
        direct program costs and contract support costs of 
        tribal organizations under self-determination;
          (2) an accounting of any deficiency in funds needed 
        to provide required contract support costs to all 
        contractors for the fiscal year for which the report is 
        being submitted;
          (3) the indirect cost rate and type of rate for each 
        tribal organization that has been negotiated with the 
        appropriate Secretary;
          (4) the direct cost base and type of base from which 
        the indirect cost rate is determined for each tribal 
        organization;
          (5) the indirect cost pool amounts and the types of 
        costs included in the indirect cost pool; and
          (6) an accounting of any deficiency in funds needed 
        to maintain the preexisting level of services to any 
        Indian tribes affected by contracting activities under 
        this Act, and a statement of the amount of funds needed 
        for transitional purposes to enable contractors to 
        convert from a Federal fiscal year accounting cycle, as 
        authorized by section 105(d).
  (d)(1) Where a tribal organization's allowable indirect cost 
recoveries are below the level of indirect costs that the 
tribal organizations should have received for any given year 
pursuant to its approved indirect cost rate, and such shortfall 
is the result of lack of full indirect cost funding by any 
Federal, State, or other agency, such shortfall in recoveries 
shall not form the basis for any theoretical over-recovery or 
other adverse adjustment to any future years' indirect cost 
rate or amount for such tribal organization, nor shall any 
agency seek to collect such shortfall from the tribal 
organization.
  (2) Nothing in this subsection shall be construed to 
authorize the Secretary to fund less than the full amount of 
need for indirect costs associated with a self-determination 
contract.
  (e) Indian tribes and tribal organizations shall not be held 
liable for amounts of indebtedness attributable to theoretical 
or actual under-recoveries or theoretical over-recoveries of 
indirect costs, as defined in Office of Management and Budget 
Circular A-87, incurred for fiscal years prior to fiscal year 
1992.
  (f) Any right of action or other remedy (other than those 
relating to a criminal offense) relating to any disallowance of 
costs shall be barred unless the Secretary has given notice of 
any such disallowance within three hundred and sixty-five days 
of receiving any required annual single agency audit report or, 
for any period covered by law or regulation in force prior to 
enactment of chapter 75 of title 31, United States Code, any 
other required final audit report. Such notice shall set forth 
the right of appeal and hearing to the board of contract 
appeals pursuant to section 110. For the purpose of determining 
the 365-day period specified in this paragraph, an audit report 
shall be deemed to have been received on the date of actual 
receipt by the Secretary, if, within 60 days after receiving 
the report, the Secretary does not give notice of a 
determination by the Secretary to reject the single-agency 
report as insufficient due to noncompliance with chapter 75 of 
title 31, United States Code, or noncompliance with any other 
applicable law. Nothing in this subsection shall be deemed to 
enlarge the rights of the Secretary with respect to section 16 
of the Indian Reorganization Act of June 18, 1934 (48 Stat. 
984; 25 U.S.C. 476).
  (g) Upon the approval of a self-determination contract, the 
Secretary shall add to the contract the full amount of funds to 
which the contractor is entitled under section 106(a), subject 
to adjustments for each subsequent year that such tribe or 
tribal organization administers a Federal program, function, 
service, or activity under such contract.
  (h) In calculating the indirect costs associated with a self-
determination contract for a construction program, the 
Secretary shall take into consideration only those costs 
associated with the administration of the contract and shall 
not take into consideration those moneys actually passed on by 
the tribal organization to construction contractors and 
subcontractors.
  (i) On an annual basis, the Secretary shall consult with, and 
solicit the participation of, Indian tribes and tribal 
organizations in the development of the budget for the Indian 
Health Service and the Bureau of Indian Affairs (including 
participation of Indian tribes and tribal organizations in 
formulating annual budget requests that the Secretary submits 
to the President for submission to Congress pursuant to section 
1105 of title 31, United States Code).
  (j) Notwithstanding any other provision of law, a tribal 
organization may use funds provided under a self-determination 
contract to meet matching or cost participation requirements 
under other Federal and non-Federal programs.
  (k) Without intending any limitation, a tribal organization 
may, without the approval of the Secretary, expend funds 
provided under a self-determination contract for the following 
purposes, to the extent that the expenditure of the funds is 
supportive of a contracted program:
          (1) Depreciation and use allowances not otherwise 
        specifically prohibited by law, including the 
        depreciation of facilities owned by the tribe or tribal 
        organization.
          (2) Publication and printing costs.
          (3) Building, realty, and facilities costs, including 
        rental costs or mortgage expenses.
          (4) Automated data processing and similar equipment 
        or services.
          (5) Costs for capital assets and repairs.
          (6) Management studies.
          (7) Professional services, other than services 
        provided in connection with judicial proceedings by or 
        against the United States.
          (8) Insurance and indemnification, including 
        insurance covering the risk of loss of or damage to 
        property used in connection with the contract without 
        regard to the ownership of such property.
          (9) Costs incurred to raise funds or contributions 
        from non-Federal sources for the purpose of furthering 
        the goals and objectives of the self-determination 
        contract.
          (10) Interest expenses paid on capital expenditures 
        such as buildings, building renovation, or acquisition 
        or fabrication of capital equipment, and interest 
        expenses on loans necessitated due to delays by the 
        Secretary in providing funds under a contract.
          (11) Expenses of a governing body of a tribal 
        organization that are attributable to the management or 
        operation of programs under this Act.
          (12) Costs associated with the management of pension 
        funds, self-insurance funds, and other funds of the 
        tribal organization that provide for participation by 
        the Federal Government.
  (l)(1) The Secretary may only suspend, withhold, or delay the 
payment of funds for a period of 30 days beginning on the date 
the Secretary makes a determination under this paragraph to a 
tribal organization under a self-determination contract, if the 
Secretary determines that the tribal organization has failed to 
substantially carry out the contract without good cause. In any 
such case, the Secretary shall provide the tribal organization 
with reasonable advance written notice, technical assistance 
(subject to available resources) to assist the tribal 
organization, a hearing on the record not later than 10 days 
after the date of such determination or such later date as the 
tribal organization shall approve, and promptly release any 
funds withheld upon subsequent compliance.
  (2) With respect to any hearing or appeal conducted pursuant 
to this subsection, the Secretary shall have the burden of 
proof to establish by clearly demonstrating the validity of the 
grounds for suspending, withholding, or delaying payment of 
funds.
  (m) The program income earned by a tribal organization in the 
course of carrying out a self-determination contract--
          (1) shall be used by the tribal organization to 
        further the general purposes of the contract; and
          (2) shall not be a basis for reducing the amount of 
        funds otherwise obligated to the contract.
  (n) To the extent that programs, functions, services, or 
activities carried out by tribal organizations pursuant to 
contracts entered into under this Act reduce the administrative 
or other responsibilities of the Secretary with respect to the 
operation of Indian programs and result in savings that have 
not otherwise been included in the amount of contract funds 
determined under subsection (a), the Secretary shall make such 
savings available for the provision of additional services to 
program beneficiaries, either directly or through contractors, 
in a manner equitable to both direct and contracted programs.
  (o) Notwithstanding any other provision of law (including any 
regulation), a tribal organization that carries out a self-
determination contract may, with respect to allocations within 
the approved budget of the contract, rebudget to meet contract 
requirements, if such rebudgeting would not have an adverse 
effect on the performance of the contract.

           *       *       *       *       *       *       *


SEC. 108. CONTRACT OR GRANT SPECIFICATIONS.

  (a) Each self-determination contract entered into under this 
Act shall--
          (1) contain, or incorporate by reference, the 
        provisions of the model agreement described in 
        subsection (c) (with modifications where indicated and 
        the blanks appropriately filled in), and
          (2) subject to subsections (a) and (b) of section 
        102, contain such other provisions as are agreed to by 
        the parties.
  (b) Notwithstanding any other provision of law, the Secretary 
may make payments pursuant to section 1(b)(6) of such model 
agreement. As provided in section 1(b)(7) of the model 
agreement, the records of the tribal government or tribal 
organization specified in such section shall not be considered 
Federal records for purposes of chapter 5 of title 5, United 
States Code.
  (c) The model agreement referred to in subsection (a)(1) 
reads as follows:

``SECTION 1. AGREEMENT BETWEEN THE SECRETARY AND THE ---- TRIBAL 
                    GOVERNMENT.

  ``(a) Authority and Purpose.--
          ``(1) Authority.--This agreement, denoted a Self-
        Determination Contract (referred to in this agreement 
        as the `Contract'), is entered into by the Secretary of 
        the Interior or the Secretary of Health and Human 
        Services (referred to in this agreement as the 
        `Secretary'), for and on behalf of the United States 
        pursuant to title I of the Indian Self-Determination 
        and Education Assistance Act (25 U.S.C. 450 et seq.) 
        and by the authority of the ---- tribal government or 
        tribal organization (referred to in this agreement as 
        the `Contractor'). The provisions of title I of the 
        Indian Self-Determination and Education Assistance Act 
        (25 U.S.C. 450 et seq.) are incorporated in this 
        agreement.
          ``(2) Purpose.--Each provision of the Indian Self-
        Determination and Education Assistance Act (25 U.S.C. 
        450 et seq.) and each provision of this Contract shall 
        be liberally construed for the benefit of the 
        Contractor to transfer the funding and the following 
        related functions, services, activities, and programs 
        (or portions thereof), that are otherwise contractable 
        under section 102(a) of such Act, including all related 
        administrative functions, from the Federal Government 
        to the Contractor: (List functions, services, 
        activities, and programs).
  ``(b) Terms, Provisions, and Conditions.--
          ``(1) Term.--Pursuant to section 105(c)(1) of the 
        Indian Self-Determination and Education Assistance Act 
        (25 U.S.C. 450j(c)(1)), the term of this contract shall 
        be ---- years. Pursuant to section 105(d)(1) of such 
        Act (25 U.S.C. 450j(d)), upon the election by the 
        Contractor, the period of this Contract shall be 
        determined on the basis of a calendar year, unless the 
        Secretary and the Contractor agree on a different 
        period in the annual funding agreement incorporated by 
        reference in subsection (f)(2).
          ``(2) Effective date.--This Contract shall become 
        effective upon the date of the approval and execution 
        by the Contractor and the Secretary, unless the 
        Contractor and the Secretary agree on an effective date 
        other than the date specified in this paragraph.
          ``(3) Program standard.--The Contractor agrees to 
        administer the program, services, functions and 
        activities (or portions thereof) listed in subsection 
        (a)(2) of the Contract in conformity with the following 
        standards: (list standards).
          ``(4) Funding amount.--Subject to the availability of 
        appropriations, the Secretary shall make available to 
        the Contractor the total amount specified in the annual 
        funding agreement incorporated by reference in 
        subsection (f)(2). Such amount shall not be less than 
        the applicable amount determined pursuant to section 
        106(a) of the Indian Self-Determination and Education 
        Assistance Act (25 U.S.C. 450j-1).
          ``(5) Limitation of costs.--The Contractor shall not 
        be obligated to continue performance that requires an 
        expenditure of funds in excess of the amount of funds 
        awarded under this Contract. If, at any time, the 
        Contractor has reason to believe that the total amount 
        required for performance of this Contract or a specific 
        activity conducted under this Contract would be greater 
        than the amount of funds awarded under this Contract, 
        the Contractor shall provide reasonable notice to the 
        appropriate Secretary. If the appropriate Secretary 
        does not take such action as may be necessary to 
        increase the amount of funds awarded under this 
        Contract, the Contractor may suspend performance of the 
        Contract until such time as additional funds are 
        awarded.
          ``(6) Payment.--
                  ``(A) In general.--Payments to the Contractor 
                under this Contract shall--
                          ``(i) be made as expeditiously as 
                        practicable; and
                          ``(ii) include financial arrangements 
                        to cover funding during periods covered 
                        by joint resolutions adopted by 
                        Congress making continuing 
                        appropriations, to the extent permitted 
                        by such resolutions.
                  ``(B) Quarterly, semiannual, lump-sum, and 
                other methods of payment.--
                          ``(i) In general.--Pursuant to 
                        section 108(b) of the Indian Self-
                        Determination and Education Assistance 
                        Act, and notwithstanding any other 
                        provision of law, for each fiscal year 
                        covered by this Contract, the Secretary 
                        shall make available to the Contractor 
                        the funds specified for the fiscal year 
                        under the annual funding agreement 
                        incorporated by reference pursuant to 
                        subsection (f)(2) by paying to the 
                        Contractor, on a quarterly basis, one-
                        quarter of the total amount provided 
                        for in the annual funding agreement for 
                        that fiscal year, in a lump-sum payment 
                        or as semiannual payments, or any other 
                        method of payment authorized by law, in 
                        accordance with such method as may be 
                        requested by the Contractor and 
                        specified in the annual funding 
                        agreement.
                          ``(ii) Method of quarterly payment.--
                        If quarterly payments are specified in 
                        the annual funding agreement 
                        incorporated by reference pursuant to 
                        subsection (f)(2), each quarterly 
                        payment made pursuant to clause (i) 
                        shall be made on the first day of each 
                        quarter of the fiscal year, except that 
                        in any case in which the Contract year 
                        coincides with the Federal fiscal year, 
                        payment for the first quarter shall be 
                        made not later than the date that is 10 
                        calendar days after the date on which 
                        the Office of Management and Budget 
                        apportions the appropriations for the 
                        fiscal year for the programs, services, 
                        functions, and activities subject to 
                        this Contract.
                          ``(iii) Applicability.--Chapter 39 of 
                        title 31, United States Code, shall 
                        apply to the payment of funds due under 
                        this Contract and the annual funding 
                        agreement referred to in clause (i).
          ``(7) Records and monitoring.--
                  ``(A) In general.--Except for previously 
                provided copies of tribal records that the 
                Secretary demonstrates are clearly required to 
                be maintained as part of the recordkeeping 
                system of the Department of the Interior or the 
                Department of Health and Human Services (or 
                both), records of the Contractor shall not be 
                considered Federal records for purposes of 
                chapter 5 of title 5, United States Code.
                  ``(B) Recordkeeping system.--The Contractor 
                shall maintain a recordkeeping system and, upon 
                reasonable advance request, provide reasonable 
                access to such records to the Secretary.
                  ``(C) Responsibilities of contractor.--The 
                Contractor shall be responsible for managing 
                the day-to-day operations conducted under this 
                Contract and for monitoring activities 
                conducted under this Contract to ensure 
                compliance with the Contract and applicable 
                Federal requirements. With respect to the 
                monitoring activities of the Secretary, the 
                routine monitoring visits shall be limited to 
                not more than [one performance monitoring 
                visit] two performance monitoring visits for 
                this Contract by the head of each operating 
                division, departmental bureau, or departmental 
                agency, or duly authorized representative of 
                such head unless--
                          ``(i) the Contractor agrees to one or 
                        more additional visits; or
                          ``(ii) the appropriate official 
                        determines that there is reasonable 
                        cause to believe that grounds for 
                        reassumption of the Contract, 
                        suspension of Contract payments, or 
                        other serious Contract performance 
                        deficiency may exist.
                No additional visit referred to in clause (ii) 
                shall be made until such time as reasonable 
                advance notice that includes a description of 
                the nature of the problem that requires the 
                additional visit has been given to the 
                Contractor.
          ``(8) Property.--
                  ``(A) In general.--As provided in section 
                105(f) of the Indian Self-Determination and 
                Education Assistance Act (25 U.S.C. 450j(f)), 
                at the request of the Contractor, the Secretary 
                may make available, or transfer to the 
                Contractor, all reasonably divisible real 
                property, facilities, equipment, and personal 
                property that the Secretary has used to provide 
                or administer the programs, services, 
                functions, and activities covered by this 
                Contract. A mutually agreed upon list 
                specifying the property, facilities, and 
                equipment so furnished shall also be prepared 
                by the Secretary, with the concurrence of the 
                Contractor, and periodically revised by the 
                Secretary, with the concurrence of the 
                Contractor.
                  ``(B) Records.--The Contractor shall maintain 
                a record of all property referred to in 
                subparagraph (A) or other property acquired by 
                the Contractor under section 105(f)(2)(A) of 
                such Act for purposes of replacement.
                  ``(C) Joint use agreements.--Upon the request 
                of the Contractor, the Secretary and the 
                Contractor shall enter into a separate joint 
                use agreement to address the shared use by the 
                parties of real or personal property that is 
                not reasonably divisible.
                  ``(D) Acquisition of property.--The 
                Contractor is granted the authority to acquire 
                such excess property as the Contractor may 
                determine to be appropriate in the judgment of 
                the Contractor to support the programs, 
                services, functions, and activities operated 
                pursuant to this Contract.
                  ``(E) Confiscated or excess property.--The 
                Secretary shall assist the Contractor in 
                obtaining such confiscated or excess property 
                as may become available to tribes, tribal 
                organizations, or local governments.
                  ``(F) Screener identification card.--A 
                screener identification card (General Services 
                Administration form numbered 2946) shall be 
                issued to the Contractor not later than the 
                effective date of this Contract. The designated 
                official shall, upon request, assist the 
                Contractor in securing the use of the card.
                  ``(G) Capital equipment.--The Contractor 
                shall determine the capital equipment, leases, 
                rentals, property, or services the Contractor 
                requires to perform the obligations of the 
                Contractor under this subsection, and shall 
                acquire and maintain records of such capital 
                equipment, property rentals, leases, property, 
                or services through applicable procurement 
                procedures of the Contractor.
          ``(9) Availability of funds.--Notwithstanding any 
        other provision of law, any funds provided under this 
        Contract--
                  ``(A) shall remain available until expended; 
                and
                  ``(B) with respect to such funds, no 
                further--
                          ``(i) approval by the Secretary, or
                          ``(ii) justifying documentation from 
                        the Contractor,
        shall be required prior to the expenditure of such 
        funds.
          ``(10) Transportation.--Beginning on the effective 
        date of this Contract, the Secretary shall authorize 
        the Contractor to obtain interagency motor pool 
        vehicles and related services for performance of any 
        activities carried out under this Contract.
          ``(11) Federal program guidelines, manuals, or policy 
        directives.--Except as specifically provided in the 
        Indian Self-Determination and Education Assistance Act 
        (25 U.S.C. 450 et seq.) the Contractor is not required 
        to abide by program guidelines, manuals, or policy 
        directives of the Secretary, unless otherwise agreed to 
        by the Contractor and the Secretary, or otherwise 
        required by law.
          ``(12) Disputes.--
                  ``(A) Third-party mediation defined.--For the 
                purposes of this Contract, the term `third-
                party mediation' means a form of mediation 
                whereby the Secretary and the Contractor 
                nominate a third party who is not employed by 
                or significantly involved with the Secretary of 
                the Interior, the Secretary of Health and Human 
                Services, or the Contractor, to serve as a 
                third-party mediator to mediate disputes under 
                this Contract.
                  ``(B) Alternative procedures.--In addition 
                to, or as an alternative to, remedies and 
                procedures prescribed by section 110 of the 
                Indian Self-Determination and Education 
                Assistance Act (25 U.S.C. 450m-1), the parties 
                to this Contract may jointly--
                          ``(i) submit disputes under this 
                        Contract to third-party mediation;
                          ``(ii) submit the dispute to the 
                        adjudicatory body of the Contractor, 
                        including the tribal court of the 
                        Contractor;
                          ``(iii) submit the dispute to 
                        mediation processes provided for under 
                        the laws, policies, or procedures of 
                        the Contractor; or
                          ``(iv) use the administrative dispute 
                        resolution processes authorized in 
                        subchapter IV of chapter 5 of title 5, 
                        United States Code.
                  ``(C) Effect of decisions.--The Secretary 
                shall be bound by decisions made pursuant to 
                the processes set forth in subparagraph (B), 
                except that the Secretary shall not be bound by 
                any decision that significantly conflicts with 
                the interests of Indians or the United States.
          ``(13) Administrative procedures of contractor.--
        Pursuant to the Indian Civil Rights Act of 1968 (25 
        U.S.C. 1301 et seq.), the laws, policies, and 
        procedures of the Contractor shall provide for 
        administrative due process (or the equivalent of 
        administrative due process) with respect to programs, 
        services, functions, and activities that are provided 
        by the Contractor pursuant to this Contract.
          ``(14) Successor annual funding agreement.--
                  ``(A) In general.--Negotiations for a 
                successor annual funding agreement, provided 
                for in subsection (f)(2), shall begin not later 
                than 120 days prior to the conclusion of the 
                preceding annual funding agreement. Except as 
                provided in section 105(c)(2) of the Indian 
                Self-Determination and Education Assistance Act 
                (25 U.S.C. 450j(c)(2)) the funding for each 
                such successor annual funding agreement shall 
                only be reduced pursuant to section 106(b) of 
                such Act (25 U.S.C. 450j-1(b)).
                  ``(B) Information.--The Secretary shall 
                prepare and supply relevant information, and 
                promptly comply with any request by the 
                Contractor for information that the Contractor 
                reasonably needs to determine the amount of 
                funds that may be available for a successor 
                annual funding agreement, as provided for in 
                subsection (f)(2) of this Contract.
          ``(15) Contract requirements; approval by 
        secretary.--
                  ``(A) In general.--Except as provided in 
                subparagraph (B), for the term of the Contract, 
                section 2103 of the Revised Statutes (25 U.S.C. 
                81), section 16 of the Act of June 18, 1934 (48 
                Stat. 987, chapter 576; 25 U.S.C. 476), and the 
                Act of July 3, 1952 (25 U.S.C. 82a), shall not 
                apply to any contract entered into in 
                connection with this Contract.
                  ``(B) Requirements.--Each Contract entered 
                into by the Contractor with a third party in 
                connection with performing the obligations of 
                the Contractor under this Contract shall--
                          ``(i) be in writing;
                          ``(ii) identify the interested 
                        parties, the authorities of such 
                        parties, and purposes of the Contract;
                          ``(iii) state the work to be 
                        performed under the Contract; and
                          ``(iv) state the process for making 
                        any claim, the payments to be made, and 
                        the terms of the Contract, which shall 
                        be fixed.
  ``(c) Obligation of the Contractor.--
          ``(1) Contract performance.--Except as provided in 
        subsection (d)(2), the Contractor shall perform the 
        programs, services, functions, and activities as 
        provided in the annual funding agreement under 
        subsection (f)(2) of this Contract.
          ``(2) Amount of funds.--The total amount of funds to 
        be paid under this Contract pursuant to section 106(a) 
        shall be determined in an annual funding agreement 
        entered into between the Secretary and the Contractor, 
        which shall be incorporated into this Contract.
          ``(3) Contracted programs.--Subject to the 
        availability of appropriated funds, the Contractor 
        shall administer the programs, services, functions, and 
        activities identified in this Contract and funded 
        through the annual funding agreement under subsection 
        (f)(2).
          ``(4) Trust services for individual indians.--
                  ``(A) In general.--To the extent that the 
                annual funding agreement provides funding for 
                the delivery of trust services to individual 
                Indians that have been provided by the 
                Secretary, the Contractor shall maintain at 
                least the same level of service as the 
                Secretary provided for such individual Indians, 
                subject to the availability of appropriated 
                funds for such services.
                  ``(B) Trust services to individual indians.--
                For the purposes of this paragraph only, the 
                term `trust services for individual Indians' 
                means only those services that pertain to land 
                or financial management connected to 
                individually held allotments.
          ``(5) Fair and uniform services.--The Contractor 
        shall provide services under this Contract in a fair 
        and uniform manner and shall provide access to an 
        administrative or judicial body empowered to adjudicate 
        or otherwise resolve complaints, claims, and grievances 
        brought by program beneficiaries against the Contractor 
        arising out of the performance of the Contract.
  ``(d) Obligation of the United States.--
          ``(1) Trust responsibility.--
                  ``(A) In general.--The United States 
                reaffirms the trust responsibility of the 
                United States to the ---- Indian tribe(s) to 
                protect and conserve the trust resources of the 
                Indian tribe(s) and the trust resources of 
                individual Indians.
                  ``(B) Construction of contract.--Nothing in 
                this Contract may be construed to terminate, 
                waive, modify, or reduce the trust 
                responsibility of the United States to the 
                tribe(s) or individual Indians. The Secretary 
                shall act in good faith in upholding such trust 
                responsibility.
          ``(2) Good faith.--To the extent that health programs 
        are included in this Contract, and within available 
        funds, the Secretary shall act in good faith in 
        cooperating with the Contractor to achieve the goals 
        set forth in the Indian Health Care Improvement Act (25 
        U.S.C. 1601 et seq.).
          ``(3) Programs retained.--As specified in the annual 
        funding agreement, the United States hereby retains the 
        programs, services, functions, and activities with 
        respect to the tribe(s) that are not specifically 
        assumed by the Contractor in the annual funding 
        agreement under subsection (f)(2).
  ``(e) Other Provisions.--
          ``(1) Designated officials.--Not later than the 
        effective date of this Contract, the United States 
        shall provide to the Contractor, and the Contractor 
        shall provide to the United States, a written 
        designation of a senior official to serve as a 
        representative for notices, proposed amendments to the 
        Contract, and other purposes for this Contract.
          ``(2) Contract modifications or amendment.--
                  ``(A) In general.--Except as provided in 
                subparagraph (B), no modification to this 
                Contract shall take effect unless such 
                modification is made in the form of a written 
                amendment to the Contract, and the Contractor 
                and the Secretary provide written consent for 
                the modification.
                  ``(B) Exception.--The addition of 
                supplemental funds for programs, functions, and 
                activities (or portions thereof) already 
                included in the annual funding agreement under 
                subsection (f)(2), and the reduction of funds 
                pursuant to section 106(b)(2), shall not be 
                subject to subparagraph (A).
          ``(3) Officials not to benefit.--No Member of 
        Congress, or resident commissioner, shall be admitted 
        to any share or part of any contract executed pursuant 
        to this Contract, or to any benefit that may arise from 
        such contract. This paragraph may not be construed to 
        apply to any contract with a third party entered into 
        under this Contract if such contract is made with a 
        corporation for the general benefit of the corporation.
          ``(4) Covenant against contingent fees.--The parties 
        warrant that no person or selling agency has been 
        employed or retained to solicit or secure any contract 
        executed pursuant to this Contract upon an agreement or 
        understanding for a commission, percentage, brokerage, 
        or contingent fee, excepting bona fide employees or 
        bona fide established commercial or selling agencies 
        maintained by the Contractor for the purpose of 
        securing business.
  ``(f) Attachments.--
          ``(1) Approval of contract.--Unless previously 
        furnished to the Secretary, the resolution of the ---- 
        Indian tribe(s) authorizing the contracting of the 
        programs, services, functions, and activities 
        identified in this Contract is attached to this 
        Contract as attachment 1.
          ``(2) Annual funding agreement.--
                  ``(A) In general.--The annual funding 
                agreement under this Contract shall only 
                contain--
                          ``(i) terms that identify the 
                        programs, services, functions, and 
                        activities to be performed or 
                        administered, the general budget 
                        category assigned, the funds to be 
                        provided, and the time and method of 
                        payment; and
                          ``(ii) subject to subsections (a) and 
                        (b) of section 102 of the Indian Self-
                        Determination and Education Assistance 
                        Act (25 U.S.C. 5321), such other 
                        provisions, including a brief 
                        description of the programs, services, 
                        functions, and activities to be 
                        performed (including those supported by 
                        financial resources other than those 
                        provided by the Secretary), to which 
                        the parties agree.
                  ``(B) Incorporation by reference.--The annual 
                funding agreement is hereby incorporated in its 
                entirety in this Contract and attached to this 
                Contract as attachment 2.''

           *       *       *       *       *       *       *


                    TITLE IV--TRIBAL SELF-GOVERNANCE

[SEC. 401. ESTABLISHMENT.

  [The Secretary of the Interior (hereinafter in this title 
referred to as the ``Secretary'') shall establish and carry out 
a program within the Department of the Interior to be known as 
Tribal Self-Governance (hereinafter in this title referred to 
as ``Self-Governance'') in accordance with this title.

[SEC. 402. SELECTION OF PARTICIPATING INDIAN TRIBES.

  [(a) Continuing Participation.--Each Indian tribe that is 
participating in the Tribal Self-Governance Demonstration 
Project at the Department of the Interior under title III on 
the date of enactment of this title shall thereafter 
participate in Self-Governance under this title and cease 
participation in the Tribal Self-Governance Demonstration 
Project under title III with respect to the Department of the 
Interior.
  [(b) Additional Participants.--(1) In addition to those 
Indian tribes participating in self-governance under subsection 
(a) of this section, the Secretary, acting through the Director 
of the Office of Self-Governance, may select up to 50 new 
tribes per year from the applicant pool described in subsection 
(c) of this section to participate in self-governance.
  [(2) If each tribe requests, two or more otherwise eligible 
Indian tribes may be treated as a single Indian tribe for the 
purpose of participating in Self-Governance as a consortium.
  [(c) Applicant Pool.--The qualified applicant pool for Self-
Governance shall consist of each tribe that--
          [(1) successfully completes the planning phase 
        described in subsection (d);
          [(2) has requested participation in Self-Governance 
        by resolution or other official action by the tribal 
        governing body; and
          [(3) has demonstrated, for the previous three fiscal 
        years, financial stability and financial management 
        capability as evidenced by the tribe having no material 
        audit exceptions in the required annual audit of the 
        self-determination contracts of the tribe.
  [(d) Planning Phase.--Each Indian tribe seeking to begin 
participation in Self-Governance shall complete a planning 
phase in accordance with this subsection. The tribe shall be 
eligible for a grant to plan and negotiate participation in 
Self-Governance. The planning phase shall include--
          [(1) legal and budgetary research; and
          [(2) internal tribal government planning and 
        organizational preparation.]

SEC. 401. DEFINITIONS.

  In this title:
          (1) Compact.--The term ``compact'' means a self-
        governance compact entered into under section 404.
          (2) Construction program; construction project.--The 
        term ``construction program'' or ``construction 
        project'' means a Tribal undertaking relating to the 
        administration, planning, environmental determination, 
        design, construction, repair, improvement, or expansion 
        of roads, bridges, buildings, structures, systems, or 
        other facilities for purposes of housing, law 
        enforcement, detention, sanitation, water supply, 
        education, administration, community, health, 
        irrigation, agriculture, conservation, flood control, 
        transportation, or port facilities, or for other Tribal 
        purposes.
          (3) Department.--The term ``Department'' means the 
        Department of the Interior.
          (4) Funding agreement.--The term ``funding 
        agreement'' means a funding agreement entered into 
        under section 403.
          (5) Gross mismanagement.--The term ``gross 
        mismanagement'' means a significant violation, shown by 
        a preponderance of the evidence, of a compact, funding 
        agreement, or statutory or regulatory requirement 
        applicable to Federal funds for a program administered 
        by an Indian Tribe under a compact or funding 
        agreement.
          (6) Inherent federal function.--The term ``inherent 
        Federal function'' means a Federal function that may 
        not legally be delegated to an Indian Tribe.
          (7) Non-bia program.--The term ``non-BIA program'' 
        means all or a portion of a program, function, service, 
        or activity that is administered by any bureau, 
        service, office, or agency of the Department of the 
        Interior other than--
                  (A) the Bureau of Indian Affairs;
                  (B) the Office of the Assistant Secretary for 
                Indian Affairs; or
                  (C) the Office of the Special Trustee for 
                American Indians.
          (8) Program.--The term ``program'' means any program, 
        function, service, or activity (or portion thereof) 
        within the Department that is included in a funding 
        agreement.
          (9) Secretary.--The term ``Secretary'' means the 
        Secretary of the Interior.
          (10) Self-determination contract.--The term ``self-
        determination contract'' means a self-determination 
        contract entered into under section 102.
          (11) Self-governance.--The term ``self-governance'' 
        means the Tribal Self-Governance Program established 
        under section 402.
          (12) Tribal share.--The term ``Tribal share'' means 
        the portion of all funds and resources of an Indian 
        Tribe that--
                  (A) support any program within the Bureau of 
                Indian Affairs, the Office of the Special 
                Trustee for American Indians, or the Office of 
                the Assistant Secretary for Indian Affairs; and
                  (B) are not required by the Secretary for the 
                performance of an inherent Federal function.
          (13) Tribal water rights settlement.--The term 
        ``Tribal water rights settlement'' means any 
        settlement, compact, or other agreement expressly 
        ratified or approved by an Act of Congress that--
                  (A) includes an Indian Tribe and the United 
                States as parties; and
                  (B) quantifies or otherwise defines any water 
                right of the Indian Tribe.

SEC. 402. TRIBAL SELF-GOVERNANCE PROGRAM.

  (a) Establishment.--The Secretary shall establish and carry 
out a program within the Department to be known as the ``Tribal 
Self-Governance Program''.
  (b) Selection of Participating Indian Tribes.--
          (1) In general.--
                  (A) Eligibility.--The Secretary, acting 
                through the Director of the Office of Self-
                Governance, may select not more than 50 new 
                Indian Tribes per year from those tribes 
                eligible under subsection (c) to participate in 
                self-governance.
                  (B) Joint participation.--On the request of 
                each participating Indian Tribe, 2 or more 
                otherwise eligible Indian Tribes may be treated 
                as a single Indian Tribe for the purpose of 
                participating in self-governance.
          (2) Other authorized indian tribe or tribal 
        organization.--If an Indian Tribe authorizes another 
        Indian Tribe or a Tribal organization to plan for or 
        carry out a program on its behalf under this title, the 
        authorized Indian Tribe or Tribal organization shall 
        have the rights and responsibilities of the authorizing 
        Indian Tribe (except as otherwise provided in the 
        authorizing resolution).
          (3) Joint participation as organization.--Two or more 
        Indian Tribes that are not otherwise eligible under 
        subsection (c) may be treated as a single Indian Tribe 
        for the purpose of participating in self-governance as 
        a Tribal organization if--
                  (A) each Indian Tribe so requests; and
                  (B) the Tribal organization itself, or at 
                least one of the Indian Tribes participating in 
                the Tribal organization, is eligible under 
                subsection (c).
          (4) Tribal withdrawal from a tribal organization.--
                  (A) In general.--An Indian Tribe that 
                withdraws from participation in a Tribal 
                organization, in whole or in part, shall be 
                entitled to participate in self-governance if 
                the Indian Tribe is eligible under subsection 
                (c).
                  (B) Effect of withdrawal.--If an Indian Tribe 
                withdraws from participation in a Tribal 
                organization, the Indian Tribe shall be 
                entitled to its Tribal share of funds and 
                resources supporting the programs that the 
                Indian Tribe is entitled to carry out under the 
                compact and funding agreement of the Indian 
                Tribe.
                  (C) Participation in self-governance.--The 
                withdrawal of an Indian Tribe from a Tribal 
                organization shall not affect the eligibility 
                of the Tribal organization to participate in 
                self-governance on behalf of one or more other 
                Indian Tribes, if the Tribal organization still 
                qualifies under subsection (c).
                  (D) Withdrawal process.--
                          (i) In general.--An Indian Tribe may, 
                        by Tribal resolution, fully or 
                        partially withdraw its Tribal share of 
                        any program in a funding agreement from 
                        a participating Tribal organization.
                          (ii) Notification.--The Indian Tribe 
                        shall provide a copy of the Tribal 
                        resolution described in clause (i) to 
                        the Secretary.
                          (iii) Effective date.--
                                  (I) In general.--A withdrawal 
                                under clause (i) shall become 
                                effective on the date that is 
                                specified in the Tribal 
                                resolution and mutually agreed 
                                upon by the Secretary, the 
                                withdrawing Indian Tribe, and 
                                the Tribal organization that 
                                signed the compact and funding 
                                agreement on behalf of the 
                                withdrawing Indian Tribe or 
                                Tribal organization.
                                  (II) No specified date.--In 
                                the absence of a date specified 
                                in the resolution, the 
                                withdrawal shall become 
                                effective on--
                                          (aa) the earlier of--
                                                  (AA) 1 year 
                                                after the date 
                                                of submission 
                                                of the request; 
                                                and
                                                  (BB) the date 
                                                on which the 
                                                funding 
                                                agreement 
                                                expires; or
                                          (bb) such date as may 
                                        be mutually agreed upon 
                                        by the Secretary, the 
                                        withdrawing Indian 
                                        Tribe, and the Tribal 
                                        organization that 
                                        signed the compact and 
                                        funding agreement on 
                                        behalf of the 
                                        withdrawing Indian 
                                        Tribe or Tribal 
                                        organization.
                  (E) Distribution of funds.--If an Indian 
                Tribe or Tribal organization eligible to enter 
                into a self-determination contract or a compact 
                or funding agreement fully or partially 
                withdraws from a participating Tribal 
                organization, the withdrawing Indian Tribe--
                          (i) may elect to enter into a self-
                        determination contract or compact, in 
                        which case--
                                  (I) the withdrawing Indian 
                                Tribe or Tribal organization 
                                shall be entitled to its Tribal 
                                share of unexpended funds and 
                                resources supporting the 
                                programs that the Indian Tribe 
                                will be carrying out under its 
                                own self-determination contract 
                                or compact and funding 
                                agreement (calculated on the 
                                same basis as the funds were 
                                initially allocated to the 
                                funding agreement of the Tribal 
                                organization); and
                                  (II) the funds referred to in 
                                subclause (I) shall be 
                                withdrawn by the Secretary from 
                                the funding agreement of the 
                                Tribal organization and 
                                transferred to the withdrawing 
                                Indian Tribe, on the condition 
                                that sections 102 and 105(i), 
                                as appropriate, shall apply to 
                                the withdrawing Indian Tribe; 
                                or
                          (ii) may elect not to enter into a 
                        self-determination contract or compact, 
                        in which case all unexpended funds and 
                        resources associated with the 
                        withdrawing Indian Tribe's returned 
                        programs (calculated on the same basis 
                        as the funds were initially allocated 
                        to the funding agreement of the Tribal 
                        organization) shall be returned by the 
                        Tribal organization to the Secretary 
                        for operation of the programs included 
                        in the withdrawal.
                  (F) Return to mature contract status.--If an 
                Indian Tribe elects to operate all or some 
                programs carried out under a compact or funding 
                agreement under this title through a self-
                determination contract under title I, at the 
                option of the Indian Tribe, the resulting self-
                determination contract shall be a mature self-
                determination contract as long as the Indian 
                Tribe meets the requirements set forth in 
                section 4(h).
  (c) Eligibility.--To be eligible to participate in self-
governance, an Indian Tribe shall--
          (1) successfully complete the planning phase 
        described in subsection (d);
          (2) request participation in self-governance by 
        resolution or other official action by the Tribal 
        governing body; and
          (3) demonstrate, for the 3 fiscal years preceding the 
        date on which the Indian Tribe requests participation, 
        financial stability and financial management capability 
        as evidenced by the Indian Tribe having no uncorrected 
        significant and material audit exceptions in the 
        required annual audit of its self-determination or 
        self-governance agreements with any Federal agency.
  (d) Planning Phase.--
          (1) In general.--An Indian Tribe seeking to begin 
        participation in self-governance shall complete a 
        planning phase as provided in this subsection.
          (2) Activities.--The planning phase shall--
                  (A) be conducted to the satisfaction of the 
                Indian Tribe; and
                  (B) include--
                          (i) legal and budgetary research; and
                          (ii) internal Tribal government 
                        planning, training, and organizational 
                        preparation.
  (e) Grants.--
          (1) In general.--Subject to the availability of 
        appropriations, an Indian Tribe or Tribal organization 
        that meets the requirements of paragraphs (2) and (3) 
        of subsection (c) shall be eligible for grants--
                  (A) to plan for participation in self-
                governance; and
                  (B) to negotiate the terms of participation 
                by the Indian Tribe or Tribal organization in 
                self-governance, as set forth in a compact and 
                a funding agreement.
          (2) Receipt of grant not required.--Receipt of a 
        grant under paragraph (1) shall not be a requirement of 
        participation in self-governance.

SEC. 403. FUNDING AGREEMENTS.

  [(a) Authorization.--The Secretary shall negotiate and enter 
into an annual written funding agreement with the governing 
body of each participating tribal government in a manner 
consistent with the Federal Government's laws and trust 
relationship to and responsibility for the Indian people.]
  (a) Authorization.--The Secretary shall, on the request of 
any Indian Tribe or Tribal organization, negotiate and enter 
into a written funding agreement with the governing body of the 
Indian Tribe or the Tribal organization in a manner consistent 
with--
          (1) the trust responsibility of the Federal 
        Government, treaty obligations, and the government-to-
        government relationship between Indian Tribes and the 
        United States; and
          (2) subsection (b).
  (b) Contents.--Each funding agreement shall--
          (1) authorize the tribe to plan, conduct, 
        consolidate, and administer programs, services, 
        functions, and activities, or portions thereof, 
        administered by the Department of the Interior through 
        the Bureau of Indian Affairs, [without regard to the 
        agency or office of the Bureau of Indian Affairs] the 
        Office of the Assistant Secretary for Indian Affairs, 
        and the Office of the Special Trustee for American 
        Indians, without regard to the agency or office of that 
        Bureau or those Offices within which the program, 
        service, function, and activity, or portion thereof, is 
        performed, including funding for agency, area, and 
        central office functions in accordance with subsection 
        (g)(3), and [including any program] including--
                  (A) any program, service, function, and 
                activity, or portion thereof, administered 
                under the authority of--
                          [(A)] (i) the Act of April 16, 1934 
                        (25 U.S.C. 452 et seq.)[;]; and
                          [(B)] (ii) the Act of November 2, 
                        1921 (25 U.S.C. 13); [and]
                  [(C)] (B) programs, services, functions, and 
                activities or portions thereof administered by 
                the Secretary of the Interior that are 
                otherwise available to Indian tribes or Indians 
                for which appropriations are made to agencies 
                other than the Department of the Interior[;]; 
                and
                  (C) any other program, service, function, or 
                activity (or portion thereof) that is provided 
                through the Bureau of Indian Affairs, the 
                Office of the Assistant Secretary for Indian 
                Affairs, or the Office of the Special Trustee 
                for American Indians with respect to which 
                Indian Tribes or Indians are primary or 
                significant beneficiaries;
          (2) subject to such terms as may be negotiated, 
        authorize the tribe to plan, conduct, consolidate, and 
        administer programs, services, functions, and 
        activities, or portions thereof, administered by the 
        Department of the Interior, other than through the 
        Bureau of Indian Affairs, that are otherwise available 
        to Indian tribes or Indians, as identified in [section 
        405(c)] section 412(c), except that nothing in this 
        subsection may be construed to provide any tribe with a 
        preference with respect to the opportunity of the tribe 
        to administer programs, services, functions, and 
        activities, or portions thereof, unless such preference 
        is otherwise provided for by law; and
          (3) subject to the terms of the agreement, authorize 
        the tribe to redesign or consolidate programs, 
        services, functions, and activities, or portions 
        thereof, and reallocate funds for such programs, 
        services, functions, and activities, or portions 
        thereof, except that, with respect to the reallocation, 
        consolidation, and redesign of programs described in 
        paragraph (2), a joint agreement between the Secretary 
        and the tribe shall be required[;].
          [(4) prohibit the inclusion of funds provided--
                  [(A) pursuant to the Tribally Controlled 
                Colleges and Universities Assistance Act of 
                1978 (25 U.S.C. 1801 et seq.);
                  [(B) for elementary and secondary schools 
                under the formula developed pursuant to section 
                1128 of the Education Amendments of 1978 (25 
                U.S.C. 2008); and
                  [(C) the Flathead Agency Irrigation Division 
                or the Flathead Agency Power Division, except 
                that nothing in this section shall affect the 
                contract authority of such divisions under 
                section 102;
          [(5) specify the services to be provided, the 
        functions to be performed, and the responsibilities of 
        the tribe and the Secretary pursuant to the agreement;
          [(6) authorize the tribe and the Secretary to 
        reallocate funds or modify budget allocations within 
        any year, and specify the procedures to be used;
          [(7) allow for retrocession of programs or portions 
        of programs pursuant to section 105(e);
          [(8) provide that, for the year for which, and to the 
        extent to which, funding is provided to a tribe under 
        this section, the tribe--
                  [(A) shall not be entitled to contract with 
                the Secretary for such funds under section 102, 
                except that such tribe shall be eligible for 
                new programs on the same basis as other tribes; 
                and
                  [(B) shall be responsible for the 
                administration of programs, services, 
                functions, and activities pursuant to 
                agreements entered into under this section; and
          [(9) prohibit the Secretary from waiving, modifying, 
        or diminishing in any way the trust responsibility of 
        the United States with respect to Indian tribes and 
        individual Indians that exists under treaties, 
        Executive orders, and other laws.]
  (c) Additional Activities.--Each funding agreement negotiated 
pursuant to subsections (a) and (b) may, in accordance to such 
additional terms as the parties deem appropriate, also include 
other programs, services, functions, and activities, or 
portions thereof, administered by the Secretary of the Interior 
which are of special geographic, historical, or cultural 
significance to the participating Indian tribe requesting a 
compact.
  (d) Provisions Relating to the Secretary.--Funding agreements 
negotiated between the Secretary and an Indian tribe shall 
include provisions--
          (1) to monitor the performance of trust functions by 
        the tribe through the annual trust evaluation, and
          (2) for the Secretary to reassume a program, service, 
        function, or activity, or portions thereof, if there is 
        a finding of imminent jeopardy to a physical trust 
        asset, natural resources, or public health and safety.
  (e) Construction Projects.--(1) Regarding construction 
programs or projects, the Secretary and Indian tribes may 
negotiate for the inclusion of specific provisions of the 
Office of Federal Procurement and Policy Act and Federal 
acquisition regulations in any funding agreement entered into 
under this Act. Absent a negotiated agreement, such provisions 
and regulatory requirements shall not apply.
  (2) In all construction projects performed pursuant to this 
title, the Secretary shall ensure that proper health and safety 
standards are provided for in the funding agreements.
  (f) Submission [for Review].--Not later than 90 days before 
the proposed effective date of an agreement entered into under 
this section, the Secretary shall submit a copy 
of [such agreement to--]
          [(1) each Indian tribe] such agreement to each Indian 
        Tribe that is served by the Agency that is serving the 
        tribe that is a party to the funding [agreement;] 
        agreement.
          [(2) the Committee on Indian Affairs of the Senate; 
        and
          [(3) the Subcommittee on Native American Affairs of 
        the Committee on Natural Resources of the House of 
        Representatives.]
  (g) Payment.--(1) At the request of the governing body of the 
tribe and under the terms of an agreement entered into under 
this section, the Secretary shall provide funding to the tribe 
to carry out the agreement.
  (2) The funding agreements authorized by this title and title 
III of this Act shall provide for advance payments to the 
tribes in the form of annual or semi-annual installments at the 
discretion of the tribes.
  (3) Subject to paragraph (4) of this subsection and 
paragraphs (1) through (3) of subsection (b), the Secretary 
shall provide funds to the tribe under an agreement under this 
title for programs, services, functions, and activities, or 
portions thereof, in an amount equal to the amount that the 
tribe would have been eligible to receive under contracts and 
grants under this Act, including amounts for direct program and 
contract support costs and, in addition, any funds that are 
specifically or functionally related to the provision by the 
Secretary of services and benefits to the tribe or its members, 
without regard to the organization level within the Department 
where such functions are carried out.
  (4) Funds for trust services to individual Indians shall be 
available under an agreement entered into under this section 
only to the extent that the same services that would have been 
provided by the Secretary are provided to individual Indians by 
the tribe.
  (h) Civil Actions.--(1) Except as provided in paragraph (2), 
for the purposes of section 110, the term ``contract'' shall 
include agreements entered into under this title.
  (2) For the period that an agreement entered into under this 
title is in effect, the provisions of section 2103 of the 
Revised Statutes of the United States (25 U.S.C. 81), section 
16 of the Act of June 18, 1934 (25 U.S.C. 476), and the Act of 
July 3, 1952 (25 U.S.C. 82a), shall not apply to attorney and 
other professional contracts by Indian tribal governments 
participating in Self-Governance under this title.
  (i) Facilitation.--(1) Except as otherwise provided by law, 
the Secretary shall interpret each Federal law and regulation 
in a manner that will facilitate--
          (A) the inclusion of programs, services, functions, 
        and activities in the agreements entered into under 
        this section; and
          (B) the implementation of agreements entered into 
        under this section.
  (2)(A) A tribe may submit a written request for a waiver to 
the Secretary identifying the regulation sought to be waived 
and the basis for the request.
  (B) Not later than 60 days after receipt by the Secretary of 
a written request by a tribe to waive application of a Federal 
regulation for an agreement entered into under this section, 
the Secretary shall either approve or deny the requested waiver 
in writing to the tribe. A denial may be made only upon a 
specific finding by the Secretary that identified language in 
the regulation may not be waived because such waiver is 
prohibited by Federal law. The Secretary's decision shall be 
final for the Department.
  (j) Funds.--All funds provided under funding agreements 
entered into pursuant to this Act, and all funds provided under 
contracts or grants made pursuant to this Act, shall be treated 
as non-Federal funds for purposes of meeting matching 
requirements under any other Federal law.
  (k) Disclaimer.--Nothing in this section is intended or shall 
be construed to expand or alter existing statutory authorities 
in the Secretary so as to authorize the Secretary to enter into 
any agreement under sections 403(b)(2) and 405(c)(1) with 
respect to functions that are inherently Federal or where the 
statute establishing the existing program does not authorize 
the type of participation sought by the tribe: Provided, 
however an Indian tribe or tribes need not be identified in the 
authorizing statute in order for a program or element of a 
program to be included in a compact under section 403(b)(2).
  (l) Incorporate Self-Determination Provisions.--At the option 
of a participating tribe or tribes, any or all provisions of 
title I of this Act shall be made part of an agreement entered 
into under title III of this Act or this title. The Secretary 
is obligated to include such provisions at the option of the 
participating tribe or tribes. If such provision is 
incorporated it shall have the same force and effect as if set 
out in full in title III or this title.
  (m) Other Provisions.--
          (1) Excluded funding.--A funding agreement shall not 
        authorize an Indian Tribe to plan, conduct, administer, 
        or receive Tribal share funding under any program 
        that--
                  (A) is provided under the Tribally Controlled 
                Colleges and Universities Assistance Act of 
                1978 (25 U.S.C. 1801 et seq.); or
                  (B) is provided for elementary and secondary 
                schools under the formula developed under 
                section 1127 of the Education Amendments of 
                1978 (25 U.S.C. 2007).
          (2) Services, functions, and responsibilities.--A 
        funding agreement shall specify--
                  (A) the services to be provided under the 
                funding agreement;
                  (B) the functions to be performed under the 
                funding agreement; and
                  (C) the responsibilities of the Indian Tribe 
                and the Secretary under the funding agreement.
          (3) Base budget.--
                  (A) In general.--A funding agreement shall, 
                at the option of the Indian Tribe, provide for 
                a stable base budget specifying the recurring 
                funds (which may include funds available under 
                section 106(a)) to be transferred to the Indian 
                Tribe, for such period as the Indian Tribe 
                specifies in the funding agreement, subject to 
                annual adjustment only to reflect changes in 
                congressional appropriations.
                  (B) Limitations.--Notwithstanding 
                subparagraph (A), a funding agreement shall not 
                specify funding associated with a program 
                described in subsection (b)(2) or (c) unless 
                the Secretary agrees.
          (4) No waiver of trust responsibility.--A funding 
        agreement shall prohibit the Secretary from waiving, 
        modifying, or diminishing in any way the trust 
        responsibility of the United States with respect to 
        Indian Tribes and individual Indians that exists under 
        treaties, Executive orders, court decisions, and other 
        laws.
  (n) Amendment.--The Secretary shall not revise, amend, or 
require additional terms in a new or subsequent funding 
agreement without the consent of the Indian Tribe, unless such 
terms are required by Federal law.
  (o) Effective Date.--A funding agreement shall become 
effective on the date specified in the funding agreement.
  (p) Existing and Subsequent Funding Agreements.--
          (1) Subsequent funding agreements.--Absent 
        notification from an Indian Tribe that the Indian Tribe 
        is withdrawing or retroceding the operation of one or 
        more programs identified in a funding agreement, or 
        unless otherwise agreed to by the parties to the 
        funding agreement or by the nature of any noncontinuing 
        program, service, function, or activity contained in a 
        funding agreement--
                  (A) a funding agreement shall remain in full 
                force and effect until a subsequent funding 
                agreement is executed, with funding paid 
                annually for each fiscal year the agreement is 
                in effect; and
                  (B) the term of the subsequent funding 
                agreement shall be retroactive to the end of 
                the term of the preceding funding agreement for 
                the purposes of calculating the amount of 
                funding to which the Indian Tribe is entitled.
          (2) Disputes.--Disputes over the implementation of 
        paragraph (1)(A) shall be subject to section 406(c).
          (3) Existing funding agreements.--An Indian Tribe 
        that was participating in self-governance under this 
        title on the date of enactment of the PROGRESS for 
        Indian Tribes Act shall have the option at any time 
        after that date--
                  (A) to retain its existing funding agreement 
                (in whole or in part) to the extent that the 
                provisions of that funding agreement are not 
                directly contrary to any express provision of 
                this title; or
                  (B) to negotiate a new funding agreement in a 
                manner consistent with this title.
          (4) Multiyear funding agreements.--An Indian Tribe 
        may, at the discretion of the Indian Tribe, negotiate 
        with the Secretary for a funding agreement with a term 
        that exceeds 1 year.

[SEC. 404. BUDGET REQUEST.

  [The Secretary shall identify, in the annual budget request 
of the President to the Congress under section 1105 of title 
31, United States Code, any funds proposed to be included in 
agreements authorized under this title.

[SEC. 405. REPORTS.

  [(a) Requirement.--The Secretary shall submit to Congress a 
written report on January 1 of each year following the date of 
enactment of this title regarding the administration of this 
title.
  [(b) Contents.--The report shall--
          [(1) identify the relative costs and benefits of 
        Self-Governance;
          [(2) identify, with particularity, all funds that are 
        specifically or functionally related to the provision 
        by the Secretary of services and benefits to Self-
        Governance tribes and their members;
          [(3) identify the funds transferred to each Self-
        Governance tribe and the corresponding reduction in the 
        Federal bureaucracy;
          [(4) include the separate views of the tribes; and
          [(5) include the funding formula for individual 
        tribal shares of Central Office funds, together with 
        the comments of affected Indian tribes, developed under 
        subsection (d).
  [(c) Report on Non-BIA Programs.--(1) In order to optimize 
opportunities for including non-Bureau of Indian Affairs 
programs, services, functions, and activities, or portions 
thereof, in agreements with tribes participating in Self-
Governance under this title, the Secretary shall--
          [(A) review all programs, services, functions, and 
        activities, or portions thereof, administered by the 
        Department of the Interior, other than through the 
        Bureau of Indian Affairs, without regard to the agency 
        or office concerned; and
          [(B) not later than 90 days after the date of 
        enactment of this title, provide to the appropriate 
        committees of Congress a listing of all such programs, 
        services, functions, and activities, or portions 
        thereof, that the Secretary determines, with the 
        concurrence of tribes participating in Self-Governance 
        under this title, are eligible for inclusion in such 
        agreements at the request of a participating Indian 
        tribe.
  [(2) The Secretary shall establish programmatic targets, 
after consultation with tribes participating in Self-Governance 
under this title, to encourage bureaus of the Department to 
assure that a significant portion of such programs, services, 
functions, and activities are actually included in the 
agreements negotiated under section 403.
  [(3) The listing and targets under paragraphs (1) and (2) 
shall be published in the Federal Register and be made 
available to any Indian tribe participating in Self-Governance 
under this title. The list shall be published before January 1, 
1995, and annually thereafter by January 1 preceding the fiscal 
year in which the targets are to be met.
  [(4) Thereafter, the Secretary shall annually review and 
publish in the Federal Register, after consultation with tribes 
participating in Self-Governance under this title, a revised 
listing and programmatic targets.
  [(d) Report on Central Office Funds.--Within 90 days after 
the date of the enactment of this title, the Secretary shall, 
in consultation with Indian tribes, develop a funding formula 
to determine the individual tribal share of funds controlled by 
the Central Office of the Bureau of Indian Affairs for 
inclusion in the Self-Governance compacts. The Secretary shall 
include such formula in the annual report submitted to the 
Congress under subsection (b), together with the views of the 
affected Indian tribes.

[SEC. 406. DISCLAIMERS.

  [(a) Other Services, Contracts, and Funds.--Nothing in this 
title shall be construed to limit or reduce in any way the 
services, contracts, or funds that any other Indian tribe or 
tribal organization is eligible to receive under section 102 or 
any other applicable Federal law.
  [(b) Federal Trust Responsibilities.--Nothing in this Act 
shall be construed to diminish the Federal trust responsibility 
to Indian tribes, individual Indians, or Indians with trust 
allotments.
  [(c) Application of Other Sections of Act.--All provisions of 
sections 6, 102(c), 104, 105(f), 110, and 111 of this Act shall 
apply to agreements provided under this title.

[SEC. 407. REGULATIONS.

  [(a) In General.--Not later than 90 days after the date of 
enactment of this title, at the request of a majority of the 
Indian tribes with agreements under this title, the Secretary 
shall initiate procedures under subchapter III of chapter 5 of 
title 5, United States Code, to negotiate and promulgate such 
regulations as are necessary to carry out this title.
  [(b) Committee.--A negotiated rulemaking committee 
established pursuant to section 565 of title 5, United States 
Code, to carry out this section shall have as its members only 
Federal and tribal government representatives, a majority of 
whom shall be representatives of Indian tribes with agreements 
under this title.
  [(c) Adaptation of Procedures.--The Secretary shall adapt the 
negotiated rulemaking procedures to the unique context of Self-
Governance and the government-to-government relationship 
between the United States and the Indian tribes.
  [(d) Effect.--The lack of promulgated regulations shall not 
limit the effect of this title.

[SEC. 408. AUTHORIZATION OF APPROPRIATIONS.

  [There are authorized to be appropriated such sums as may be 
necessary to carry out this title.]

SEC. 404. COMPACTS

  (a) In general The Secretary shall negotiate and enter into a 
written compact with each Indian Tribe participating in self-
governance in a manner consistent with the trust responsibility 
of the Federal Government, treaty obligations, and the 
government-to-government relationship between Indian Tribes and 
the United States.
  (b) Contents A compact under subsection (a) shall--
          (1) specify and affirm the general terms of the 
        government-to-government relationship between the 
        Indian Tribe and the Secretary; and
          (2) include such terms as the parties intend shall 
        control during the term of the compact.
  (c) Amendment A compact under subsection (a) may be amended 
only by agreement of the parties.
  (d) Effective date The effective date of a compact under 
subsection (a) shall be--
          (1) the date of the execution of the compact by the 
        parties; or
          (2) such date as is mutually agreed upon by the 
        parties.
  (e) Duration A compact under subsection (a) shall remain in 
effect--
          (1) for so long as permitted by Federal law; or
          (2) until termination by written agreement, 
        retrocession, or reassumption.
  (f) Existing compacts An Indian Tribe participating in self-
governance under this title, as in effect on the date of 
enactment of the PROGRESS for Indian Tribes Act, shall have the 
option at any time after that date--
          (1) to retain its negotiated compact (in whole or in 
        part) to the extent that the provisions of the compact 
        are not directly contrary to any express provision of 
        this title; or
          (2) to negotiate a new compact in a manner consistent 
        with this title.

SEC. 405. GENERAL PROVISIONS

  (a) Applicability An Indian Tribe and the Secretary shall 
include in any compact or funding agreement provisions that 
reflect the requirements of this title.
  (b) Conflicts of interest An Indian Tribe participating in 
self-governance shall ensure that internal measures are in 
place to address, pursuant to Tribal law and procedures, 
conflicts of interest in the administration of programs.
  (c) Audits
          (1) Single agency audit act Chapter 75 of title 31, 
        United States Code, shall apply to a funding agreement 
        under this title.
          (2) Cost principles An Indian Tribe shall apply cost 
        principles under the applicable Office of Management 
        and Budget circular, except as modified by--
                  (A) any provision of law, including section 
                106; or
                  (B) any exemptions to applicable Office of 
                Management and Budget circulars subsequently 
                granted by the Office of Management and Budget.
          (3) Federal claims Any claim by the Federal 
        Government against an Indian Tribe relating to funds 
        received under a funding agreement based on any audit 
        under this subsection shall be subject to section 
        106(f).
  (d) Redesign and consolidation Except as provided in section 
407, an Indian Tribe may redesign or consolidate programs, or 
reallocate funds for programs, in a compact or funding 
agreement in any manner that the Indian Tribe determines to be 
in the best interest of the Indian community being served--
          (1) so long as the redesign or consolidation does not 
        have the effect of denying eligibility for services to 
        population groups otherwise eligible to be served under 
        applicable Federal law; and
          (2) except that, with respect to the reallocation, 
        consolidation, and redesign of programs described in 
        subsection (b)(2) or (c) of section 403, a joint 
        agreement between the Secretary and the Indian Tribe 
        shall be required.
  (e) Retrocession
          (1) In general An Indian Tribe may fully or partially 
        retrocede to the Secretary any program under a compact 
        or funding agreement.
          (2) Effective date
                  (A) Agreement Unless an Indian Tribe rescinds 
                a request for retrocession under paragraph (1), 
                the retrocession shall become effective on the 
                date specified by the parties in the compact or 
                funding agreement.
                  (B) No agreement In the absence of a 
                specification of an effective date in the 
                compact or funding agreement, the retrocession 
                shall become effective on--
                          (i) the earlier of--
                                  (I) 1 year after the date on 
                                which the request is submitted; 
                                and
                                  (II) the date on which the 
                                funding agreement expires; or
                          (ii) such date as may be mutually 
                        agreed upon by the Secretary and the 
                        Indian Tribe.
  (f) Nonduplication A funding agreement shall provide that, 
for the period for which, and to the extent to which, funding 
is provided to an Indian Tribe under this title, the Indian 
Tribe--
          (1) shall not be entitled to contract with the 
        Secretary for funds under section 102, except that the 
        Indian Tribe shall be eligible for new programs on the 
        same basis as other Indian Tribes; and
          (2) shall be responsible for the administration of 
        programs in accordance with the compact or funding 
        agreement.
  (g) Records
          (1) In general Unless an Indian Tribe specifies 
        otherwise in the compact or funding agreement, records 
        of an Indian Tribe shall not be considered to be 
        Federal records for purposes of chapter 5 of title 5, 
        United States Code.
          (2) Recordkeeping system An Indian Tribe shall--
                  (A) maintain a recordkeeping system; and
                  (B) on a notice period of not less than 30 
                days, provide the Secretary with reasonable 
                access to the records to enable the Department 
                to meet the requirements of sections 3101 
                through 3106 of title 44, United States Code.

SEC. 406. PROVISIONS RELATING TO THE SECRETARY

  (a) Trust evaluations A funding agreement shall include a 
provision to monitor the performance of trust functions by the 
Indian Tribe through the annual trust evaluation.
  (b) Reassumption
          (1) In general A compact or funding agreement shall 
        include provisions for the Secretary to reassume a 
        program and associated funding if there is a specific 
        finding relating to that program of--
                  (A) imminent jeopardy to a trust asset, a 
                natural resource, or public health and safety 
                that--
                          (i) is caused by an act or omission 
                        of the Indian Tribe; and
                          (ii) arises out of a failure to carry 
                        out the compact or funding agreement; 
                        or
                  (B) gross mismanagement with respect to funds 
                transferred to an Indian Tribe under a compact 
                or funding agreement, as determined by the 
                Secretary in consultation with the Inspector 
                General, as appropriate.
          (2) Prohibition The Secretary shall not reassume 
        operation of a program, in whole or part, unless--
                  (A) the Secretary first provides written 
                notice and a hearing on the record to the 
                Indian Tribe; and
                  (B) the Indian Tribe does not take corrective 
                action to remedy the mismanagement of the funds 
                or programs, or the imminent jeopardy to a 
                trust asset, natural resource, or public health 
                and safety.
          (3) Exception
                  (A) In general Notwithstanding paragraph (2), 
                the Secretary may, on written notice to the 
                Indian Tribe, immediately reassume operation of 
                a program if--
                          (i) the Secretary makes a finding of 
                        imminent and substantial jeopardy and 
                        irreparable harm to a trust asset, a 
                        natural resource, or the public health 
                        and safety caused by an act or omission 
                        of the Indian Tribe; and
                          (ii) the imminent and substantial 
                        jeopardy and irreparable harm to the 
                        trust asset, natural resource, or 
                        public health and safety arises out of 
                        a failure by the Indian Tribe to carry 
                        out the terms of an applicable compact 
                        or funding agreement.
                  (B) Reassumption If the Secretary reassumes 
                operation of a program under subparagraph (A), 
                the Secretary shall provide the Indian Tribe 
                with a hearing on the record not later than 10 
                days after the date of reassumption.
  (c) Inability To agree on compact or funding agreement
          (1) Final offer If the Secretary and a participating 
        Indian Tribe are unable to agree, in whole or in part, 
        on the terms of a compact or funding agreement 
        (including funding levels), the Indian Tribe may submit 
        a final offer to the Secretary.
          (2) Determination Not more than 60 days after the 
        date of receipt of a final offer by one or more of the 
        officials designated pursuant to paragraph (4), the 
        Secretary shall review and make a determination with 
        respect to the final offer, except that the 60-day 
        period may be extended for up to 30 days for 
        circumstances beyond the control of the Secretary, upon 
        written request by the Secretary to the Indian tribe.
          (3) Extensions The deadline described in paragraph 
        (2) may be extended for any length of time, as agreed 
        upon by both the Indian Tribe and the Secretary.
          (4) Designated officials
                  (A) In general The Secretary shall designate 
                one or more appropriate officials in the 
                Department to receive a copy of the final offer 
                described in paragraph (1).
                  (B) No designation If no official is 
                designated, the Director of the Office of the 
                Executive Secretariat and Regulatory Affairs 
                shall be the designated official.
          (5) No timely determination If the Secretary fails to 
        make a determination with respect to a final offer 
        within the period specified in paragraph (2), including 
        any extension agreed to under paragraph (3), the 
        Secretary shall be deemed to have agreed to the offer, 
        except that with respect to any compact or funding 
        agreement provision concerning a program described 
        under section 403(c), the Secretary shall be deemed to 
        have rejected the offer with respect to such provision 
        and the terms of clauses (ii) through (iv) of 
        paragraphs (6)(A) shall apply.
          (6) Rejection of final offer
                  (A) In general If the Secretary rejects a 
                final offer (or one or more provisions or 
                funding levels in a final offer), the Secretary 
                shall--
                          (i) provide timely written 
                        notification to the Indian Tribe that 
                        contains a specific finding that 
                        clearly demonstrates, or that is 
                        supported by a controlling legal 
                        authority, that--
                                  (I) the amount of funds 
                                proposed in the final offer 
                                exceeds the applicable funding 
                                level as determined under 
                                section 106(a)(1);
                                  (II) the program that is the 
                                subject of the final offer is 
                                an inherent Federal function or 
                                is subject to the discretion of 
                                the Secretary under section 
                                403(c);
                                  (III) the Indian Tribe cannot 
                                carry out the program in a 
                                manner that would not result in 
                                significant danger or risk to 
                                the public health or safety, to 
                                natural resources, or to trust 
                                resources;
                                  (IV) the Indian Tribe is not 
                                eligible to participate in 
                                self-governance under section 
                                402(c);
                                  (V) the funding agreement 
                                would violate a Federal statute 
                                or regulation; or
                                  (VI) with respect to a 
                                program or portion of a program 
                                included in a final offer 
                                pursuant to section 403(b)(2), 
                                the program or the portion of 
                                the program is not otherwise 
                                available to Indian Tribes or 
                                Indians under section 
                                102(a)(1)(E);
                          (ii) provide technical assistance to 
                        overcome the objections stated in the 
                        notification required by clause (i);
                          (iii) provide the Indian Tribe with a 
                        hearing on the record with the right to 
                        engage in full discovery relevant to 
                        any issue raised in the matter, and the 
                        opportunity for appeal on the 
                        objections raised, except that the 
                        Indian Tribe may, in lieu of filing 
                        such appeal, directly proceed to 
                        initiate an action in a United States 
                        district court under section 110(a); 
                        and
                          (iv) provide the Indian Tribe the 
                        option of entering into the severable 
                        portions of a final proposed compact or 
                        funding agreement (including a lesser 
                        funding amount, if any), that the 
                        Secretary did not reject, subject to 
                        any additional alterations necessary to 
                        conform the compact or funding 
                        agreement to the severed provisions.
                  (B) Effect of exercising certain option If an 
                Indian Tribe exercises the option specified in 
                subparagraph (A)(iv)--
                          (i) the Indian Tribe shall retain the 
                        right to appeal the rejection by the 
                        Secretary under this section; and
                          (ii) clauses (i), (ii), and (iii) of 
                        subparagraph (A) shall apply only to 
                        the portion of the proposed final 
                        compact or funding agreement that was 
                        rejected by the Secretary.
  (d) Burden of proof In any administrative action, hearing, 
appeal, or civil action brought under this section, the 
Secretary shall have the burden of proof--
          (1) of demonstrating, by a preponderance of the 
        evidence, the validity of the grounds for a 
        reassumption under subsection (b); and
          (2) of clearly demonstrating the validity of the 
        grounds for rejecting a final offer made under 
        subsection (c).
  (e) Good faith
          (1) In general In the negotiation of compacts and 
        funding agreements, the Secretary shall at all times 
        negotiate in good faith to maximize implementation of 
        the self-governance policy.
          (2) Policy The Secretary shall carry out this title 
        in a manner that maximizes the policy of Tribal self-
        governance.
  (f) Savings
          (1) In general To the extent that programs carried 
        out for the benefit of Indian Tribes and Tribal 
        organizations under this title reduce the 
        administrative or other responsibilities of the 
        Secretary with respect to the operation of Indian 
        programs and result in savings that have not otherwise 
        been included in the amount of Tribal shares and other 
        funds determined under section 408(c), except for 
        funding agreements entered into for programs under 
        section 403(c), the Secretary shall make such savings 
        available to the Indian Tribes or Tribal organizations 
        for the provision of additional services to program 
        beneficiaries in a manner equitable to directly served, 
        contracted, and compacted programs.
          (2) Discretionary programs of special significance 
        For any savings generated as a result of the assumption 
        of a program by an Indian Tribe under section 403(c), 
        such savings shall be made available to that Indian 
        Tribe.
  (g) Trust responsibility The Secretary may not waive, modify, 
or diminish in any way the trust responsibility of the United 
States with respect to Indian Tribes and individual Indians 
that exists under treaties, Executive orders, other laws, or 
court decisions.
  (h) Decision maker A decision that constitutes final agency 
action and relates to an appeal within the Department conducted 
under subsection (c)(6)(A)(iii) may be made by--
          (1) an official of the Department who holds a 
        position at a higher organizational level within the 
        Department than the level of the departmental agency in 
        which the decision that is the subject of the appeal 
        was made; or
          (2) an administrative law judge.
  (i) Rules of construction Subject to section 101(a) of the 
PROGRESS for Indian Tribes Act, each provision of this title 
and each provision of a compact or funding agreement shall be 
liberally construed for the benefit of the Indian Tribe 
participating in self-governance, and any ambiguity shall be 
resolved in favor of the Indian Tribe.

SEC. 407. CONSTRUCTION PROGRAMS AND PROJECTS

  (a) In general Indian Tribes participating in Tribal self-
governance may carry out any construction project included in a 
compact or funding agreement under this title.
  (b) Tribal option To carry out certain Federal environmental 
activities In carrying out a construction project under this 
title, an Indian Tribe may, subject to the agreement of the 
Secretary, elect to assume some Federal responsibilities under 
the National Environmental Policy Act of 1969 (42 U.S.C. 4321 
et seq.), division A of subtitle III of title 54, United States 
Code, and related provisions of other law and regulations that 
would apply if the Secretary were to undertake a construction 
project, by adopting a resolution--
          (1) designating a certifying Tribal officer to 
        represent the Indian Tribe and to assume the status of 
        a responsible Federal official under those Acts, laws, 
        or regulations; and
          (2) accepting the jurisdiction of the United States 
        courts for the purpose of enforcing the 
        responsibilities of the certifying Tribal officer 
        assuming the status of a responsible Federal official 
        under those Acts, laws, or regulations.
  (c) Savings clause Notwithstanding subsection (b), nothing in 
this section authorizes the Secretary to include in any compact 
or funding agreement duties of the Secretary under the National 
Environmental Policy Act of 1969 (42 U.S.C. 4321 et seq.), 
division A of subtitle III of title 54, United States Code, and 
other related provisions of law that are inherent Federal 
functions.
  (d) Codes and standards In carrying out a construction 
project under this title, an Indian Tribe shall--
          (1) adhere to applicable Federal, State, local, and 
        Tribal building codes, architectural and engineering 
        standards, and applicable Federal guidelines regarding 
        design, space, and operational standards, appropriate 
        for the particular project; and
          (2) use only architects and engineers who--
                  (A) are licensed to practice in the State in 
                which the facility will be built; and
                  (B) certify that--
                          (i) they are qualified to perform the 
                        work required by the specific 
                        construction involved; and
                          (ii) upon completion of design, the 
                        plans and specifications meet or exceed 
                        the applicable construction and safety 
                        codes.
  (e) Tribal accountability
          (1) In general In carrying out a construction project 
        under this title, an Indian Tribe shall assume 
        responsibility for the successful completion of the 
        construction project and of a facility that is usable 
        for the purpose for which the Indian Tribe received 
        funding.
          (2) Requirements For each construction project 
        carried out by an Indian Tribe under this title, the 
        Indian Tribe and the Secretary shall negotiate a 
        provision to be included in the funding agreement that 
        identifies--
                  (A) the approximate start and completion 
                dates for the project, which may extend over a 
                period of one or more years;
                  (B) a general description of the project, 
                including the scope of work, references to 
                design criteria, and other terms and 
                conditions;
                  (C) the responsibilities of the Indian Tribe 
                and the Secretary for the project;
                  (D) how project-related environmental 
                considerations will be addressed;
                  (E) the amount of funds provided for the 
                project;
                  (F) the obligations of the Indian Tribe to 
                comply with the codes referenced in subsection 
                (d)(1) and applicable Federal laws and 
                regulations;
                  (G) the agreement of the parties over who 
                will bear any additional costs necessary to 
                meet changes in scope, or errors or omissions 
                in design and construction; and
                  (H) the agreement of the Secretary to issue a 
                certificate of occupancy, if requested by the 
                Indian Tribe, based upon the review and 
                verification by the Secretary, to the 
                satisfaction of the Secretary, that the Indian 
                Tribe has secured upon completion the review 
                and approval of the plans and specifications, 
                sufficiency of design, life safety, and code 
                compliance by qualified, licensed, and 
                independent architects and engineers.
  (f) Funding
          (1) In general Funding appropriated for construction 
        projects carried out under this title shall be included 
        in funding agreements as annual or semiannual advance 
        payments at the option of the Indian Tribe.
          (2) Advance payments The Secretary shall include all 
        associated project contingency funds with each advance 
        payment, and the Indian Tribe shall be responsible for 
        the management of such contingency funds.
  (g) Negotiations At the option of the Indian Tribe, 
construction project funding proposals shall be negotiated 
pursuant to the statutory process in section 105, and any 
resulting construction project agreement shall be incorporated 
into the funding agreement as addenda.
  (h) Federal review and verification
          (1) In general On a schedule negotiated by the 
        Secretary and the Indian Tribe--
                  (A) the Secretary shall review and verify, to 
                the satisfaction of the Secretary, that project 
                planning and design documents prepared by the 
                Indian Tribe in advance of initial construction 
                are in conformity with the obligations of the 
                Indian Tribe under subsection (d); and
                  (B) before the project planning and design 
                documents are implemented, the Secretary shall 
                review and verify to the satisfaction of the 
                Secretary that subsequent document amendments 
                which result in a significant change in 
                construction are in conformity with the 
                obligations of the Indian Tribe under 
                subsection (d).
          (2) Reports The Indian Tribe shall provide the 
        Secretary with project progress and financial reports 
        not less than semiannually.
          (3) Oversight visits The Secretary may conduct onsite 
        project oversight visits semiannually or on an 
        alternate schedule agreed to by the Secretary and the 
        Indian Tribe.
  (i) Application of other laws Unless otherwise agreed to by 
the Indian Tribe and except as otherwise provided in this Act, 
no provision of title 41, United States Code, the Federal 
Acquisition Regulation, or any other law or regulation 
pertaining to Federal procurement (including Executive orders) 
shall apply to any construction program or project carried out 
under this title.
  (j) Future funding Upon completion of a facility constructed 
under this title, the Secretary shall include the facility 
among those eligible for annual operation and maintenance 
funding support comparable to that provided for similar 
facilities funded by the Department as annual appropriations 
are available and to the extent that the facility size and 
complexity and other factors do not exceed the funding formula 
criteria for comparable buildings.

SEC. 408. PAYMENT

  (a) In general At the request of the governing body of an 
Indian Tribe and under the terms of an applicable funding 
agreement, the Secretary shall provide funding to the Indian 
Tribe to carry out the funding agreement.
  (b) Advance annual payment At the option of the Indian Tribe, 
a funding agreement shall provide for an advance annual payment 
to an Indian Tribe.
  (c) Amount
          (1) In general Subject to subsection (e) and sections 
        403 and 405, the Secretary shall provide funds to the 
        Indian Tribe under a funding agreement for programs in 
        an amount that is equal to the amount that the Indian 
        Tribe would have been entitled to receive under 
        contracts and grants under this Act (including amounts 
        for direct program and contract support costs and, in 
        addition, any funds that are specifically or 
        functionally related to the provision by the Secretary 
        of services and benefits to the Indian Tribe or its 
        members) without regard to the organization level 
        within the Department at which the programs are carried 
        out.
          (2) Savings clause Nothing in this section reduces 
        programs, services, or funds of, or provided to, 
        another Indian Tribe.
  (d) Timing
          (1) In general Pursuant to the terms of any compact 
        or funding agreement entered into under this title, the 
        Secretary shall transfer to the Indian Tribe all funds 
        provided for in the funding agreement, pursuant to 
        subsection (c), and provide funding for periods covered 
        by joint resolution adopted by Congress making 
        continuing appropriations, to the extent permitted by 
        such resolution.
          (2) Transfers Not later than 1 year after the date of 
        enactment of the PROGRESS for Indian Tribes Act, in any 
        instance in which a funding agreement requires an 
        annual transfer of funding to be made at the beginning 
        of a fiscal year or requires semiannual or other 
        periodic transfers of funding to be made commencing at 
        the beginning of a fiscal year, the first such transfer 
        shall be made not later than 10 days after the 
        apportionment of such funds by the Office of Management 
        and Budget to the Department, unless the funding 
        agreement provides otherwise.
  (e) Availability Funds for trust services to individual 
Indians shall be available under a funding agreement only to 
the extent that the same services that would have been provided 
by the Secretary are provided to individual Indians by the 
Indian Tribe.
  (f) Multiyear funding A funding agreement may provide for 
multiyear funding.
  (g) Limitations on authority of the Secretary The Secretary 
shall not--
          (1) fail to transfer to an Indian Tribe its full 
        share of any central, headquarters, regional, area, or 
        service unit office or other funds due under this title 
        for programs eligible under paragraph (1) or (2) of 
        section 403(b), except as required by Federal law;
          (2) withhold any portion of such funds for transfer 
        over a period of years; or
          (3) reduce the amount of funds required under this 
        title--
                  (A) to make funding available for self-
                governance monitoring or administration by the 
                Secretary;
                  (B) in subsequent years, except as necessary 
                as a result of--
                          (i) a reduction in appropriations 
                        from the previous fiscal year for the 
                        program to be included in a compact or 
                        funding agreement;
                          (ii) a congressional directive in 
                        legislation or an accompanying report;
                          (iii) a Tribal authorization;
                          (iv) a change in the amount of pass-
                        through funds subject to the terms of 
                        the funding agreement; or
                          (v) completion of an activity under a 
                        program for which the funds were 
                        provided;
                  (C) to pay for Federal functions, including--
                          (i) Federal pay costs;
                          (ii) Federal employee retirement 
                        benefits;
                          (iii) automated data processing;
                          (iv) technical assistance; and
                          (v) monitoring of activities under 
                        this title; or
                  (D) to pay for costs of Federal personnel 
                displaced by self-determination contracts under 
                this Act or self-governance under this title.
  (h) Federal resources If an Indian Tribe elects to carry out 
a compact or funding agreement with the use of Federal 
personnel, Federal supplies (including supplies available from 
Federal warehouse facilities), Federal supply sources 
(including lodging, airline transportation, and other means of 
transportation, including the use of interagency motor pool 
vehicles), or other Federal resources (including supplies, 
services, and resources available to the Secretary under any 
procurement contracts in which the Department is eligible to 
participate), the Secretary shall, as soon as practicable, 
acquire and transfer such personnel, supplies, or resources to 
the Indian Tribe under this title.
  (i) Prompt Payment Act Chapter 39 of title 31, United States 
Code, shall apply to the transfer of funds due under a compact 
or funding agreement authorized under this title.
  (j) Interest or other income
          (1) In general An Indian Tribe may retain interest or 
        income earned on any funds paid under a compact or 
        funding agreement to carry out governmental purposes.
          (2) No effect on other amounts The retention of 
        interest or income under paragraph (1) shall not 
        diminish the amount of funds an Indian Tribe is 
        entitled to receive under a funding agreement in the 
        year the interest or income is earned or in any 
        subsequent fiscal year.
          (3) Investment standard Funds transferred under this 
        title shall be managed by the Indian Tribe using the 
        prudent investment standard, provided that the 
        Secretary shall not be liable for any investment losses 
        of funds managed by the Indian Tribe that are not 
        otherwise guaranteed or insured by the Federal 
        Government.
  (k) Carryover of funds
          (1) In general Notwithstanding any provision of an 
        appropriations Act, all funds paid to an Indian Tribe 
        in accordance with a compact or funding agreement shall 
        remain available until expended.
          (2) Effect of carryover If an Indian Tribe elects to 
        carry over funding from one year to the next, the 
        carryover shall not diminish the amount of funds the 
        Indian Tribe is entitled to receive under a funding 
        agreement in that fiscal year or any subsequent fiscal 
        year.
  (l) Limitation of costs
          (1) In general An Indian Tribe shall not be obligated 
        to continue performance that requires an expenditure of 
        funds in excess of the amount of funds transferred 
        under a compact or funding agreement.
          (2) Notice of insufficiency If at any time the Indian 
        Tribe has reason to believe that the total amount 
        provided for a specific activity under a compact or 
        funding agreement is insufficient, the Indian Tribe 
        shall provide reasonable notice of such insufficiency 
        to the Secretary.
          (3) Suspension of performance If, after notice under 
        paragraph (2), the Secretary does not increase the 
        amount of funds transferred under the funding 
        agreement, the Indian Tribe may suspend performance of 
        the activity until such time as additional funds are 
        transferred.
          (4) Savings clause Nothing in this section reduces 
        any programs, services, or funds of, or provided to, 
        another Indian Tribe.
  (m) Distribution of funds The Office of Self-Governance shall 
be responsible for distribution of all Bureau of Indian Affairs 
funds provided under this title unless otherwise agreed by the 
parties to an applicable funding agreement.
  (n) Applicability Notwithstanding any other provision of this 
section, section 101(a) of the PROGRESS for Indian Tribes Act 
applies to subsections (a) through (m).

SEC. 409. FACILITATION

  (a) In general Except as otherwise provided by law (including 
section 101(a) of the PROGRESS for Indian Tribes Act), the 
Secretary shall interpret each Federal law and regulation in a 
manner that facilitates--
          (1) the inclusion of programs in funding agreements; 
        and
          (2) the implementation of funding agreements.
  (b) Regulation waiver
          (1) Request An Indian Tribe may submit to the 
        Secretary a written request for a waiver of 
        applicability of a Federal regulation, including--
                  (A) an identification of the specific text in 
                the regulation sought to be waived; and
                  (B) the basis for the request.
          (2) Determination by the Secretary Not later than 120 
        days after receipt by the Secretary and the designated 
        officials under paragraph (4) of a request under 
        paragraph (1), the Secretary shall approve or deny the 
        requested waiver in writing to the Indian Tribe.
          (3) Extensions The deadline described in paragraph 
        (2) may be extended for any length of time, as agreed 
        upon by both the Indian Tribe and the Secretary.
          (4) Designated officials The Secretary shall 
        designate one or more appropriate officials in the 
        Department to receive a copy of the waiver request 
        described in paragraph (1).
          (5) Grounds for denial The Secretary may deny a 
        request under paragraph (1) upon a specific finding by 
        the Secretary that the identified text in the 
        regulation may not be waived because such a waiver is 
        prohibited by Federal law.
          (6) Failure to make determination If the Secretary 
        fails to make a determination with respect to a waiver 
        request within the period specified in paragraph (2) 
        (including any extension agreed to under paragraph 
        (3)), the Secretary shall be deemed to have agreed to 
        the request, except that for a waiver request relating 
        to programs eligible under section 403(b)(2) or section 
        403(c), the Secretary shall be deemed to have denied 
        the request.
          (7) Finality A decision of the Secretary under this 
        section shall be final for the Department.

SEC. 410. DISCRETIONARY APPLICATION OF OTHER SECTIONS

  (a) In general Except as otherwise provided in section 201(d) 
of the PROGRESS for Indian Tribes Act, at the option of a 
participating Indian Tribe or Indian Tribes, any of the 
provisions of title I may be incorporated in any compact or 
funding agreement under this title. The inclusion of any such 
provision shall be subject to, and shall not conflict with, 
section 101(a) of such Act.
  (b) Effect Each incorporated provision under subsection (a) 
shall--
          (1) have the same force and effect as if set out in 
        full in this title;
          (2) supplement or replace any related provision in 
        this title; and
          (3) apply to any agency otherwise governed by this 
        title.
  (c) Effective date If an Indian Tribe requests incorporation 
at the negotiation stage of a compact or funding agreement, the 
incorporation shall--
          (1) be effective immediately; and
          (2) control the negotiation and resulting compact and 
        funding agreement.

SEC. 411. ANNUAL BUDGET LIST

  The Secretary shall list, in the annual budget request 
submitted to Congress under section 1105 of title 31, United 
States Code, any funds proposed to be included in funding 
agreements authorized under this title.

SEC. 412. REPORTS

  (a) In general
          (1) Requirement On January 1 of each year, the 
        Secretary shall submit to Congress a report regarding 
        the administration of this title.
          (2) Analysis Any Indian Tribe may submit to the 
        Office of Self-Governance and to the appropriate 
        committees of Congress a detailed annual analysis of 
        unmet Tribal needs for funding agreements under this 
        title.
  (b) Contents The report under subsection (a)(1) shall--
          (1) be compiled from information contained in funding 
        agreements, annual audit reports, and data of the 
        Secretary regarding the disposition of Federal funds;
          (2) identify--
                  (A) the relative costs and benefits of self-
                governance;
                  (B) with particularity, all funds that are 
                specifically or functionally related to the 
                provision by the Secretary of services and 
                benefits to self-governance Indian Tribes and 
                members of Indian Tribes;
                  (C) the funds transferred to each Indian 
                Tribe and the corresponding reduction in the 
                Federal employees and workload; and
                  (D) the funding formula for individual Tribal 
                shares of all Central Office funds, together 
                with the comments of affected Indian Tribes, 
                developed under subsection (d);
          (3) before being submitted to Congress, be 
        distributed to the Indian Tribes for comment (with a 
        comment period of not less than 30 days);
          (4) include the separate views and comments of each 
        Indian Tribe or Tribal organization; and
          (5) include a list of--
                  (A) all such programs that the Secretary 
                determines, in consultation with Indian Tribes 
                participating in self-governance, are eligible 
                for negotiation to be included in a funding 
                agreement at the request of a participating 
                Indian Tribe; and
                  (B) all such programs which Indian Tribes 
                have formally requested to include in a funding 
                agreement under section 403(c) due to the 
                special geographic, historical, or cultural 
                significance of the program to the Indian 
                Tribe, indicating whether each request was 
                granted or denied, and stating the grounds for 
                any denial.
  (c) Report on non-BIA programs
          (1) In general In order to optimize opportunities for 
        including non-BIA programs in agreements with Indian 
        Tribes participating in self-governance under this 
        title, the Secretary shall review all programs 
        administered by the Department, other than through the 
        Bureau of Indian Affairs, the Office of the Assistant 
        Secretary for Indian Affairs, or the Office of the 
        Special Trustee for American Indians, without regard to 
        the agency or office concerned.
          (2) Programmatic targets The Secretary shall 
        establish programmatic targets, after consultation with 
        Indian Tribes participating in self-governance, to 
        encourage bureaus of the Department to ensure that an 
        appropriate portion of those programs are available to 
        be included in funding agreements.
          (3) Publication The lists under subsection (b)(5) and 
        targets under paragraph (2) shall be published in the 
        Federal Register and made available to any Indian Tribe 
        participating in self-governance.
          (4) Annual review
                  (A) In general The Secretary shall annually 
                review and publish in the Federal Register, 
                after consultation with Indian Tribes 
                participating in self-governance, revised lists 
                and programmatic targets.
                  (B) Contents In preparing the revised lists 
                and programmatic targets, the Secretary shall 
                consider all programs that were eligible for 
                contracting in the original list published in 
                the Federal Register in 1995, except for 
                programs specifically determined not to be con-
                tract-i-ble as a matter of law.
  (d) Report on Central Office funds Not later than January 1, 
2020, the Secretary shall, in consultation with Indian Tribes, 
develop a funding formula to determine the individual Tribal 
share of funds controlled by the Central Office of the Bureau 
of Indian Affairs and the Office of the Special Trustee for 
inclusion in the compacts.

SEC. 413. REGULATIONS

  (a) In general
          (1) Promulgation Not later than 90 days after the 
        date of enactment of the PROGRESS for Indian Tribes 
        Act, the Secretary shall initiate procedures under 
        subchapter III of chapter 5 of title 5, United States 
        Code, to negotiate and promulgate such regulations as 
        are necessary to carry out this title.
          (2) Publication of proposed regulations Proposed 
        regulations to implement this title shall be published 
        in the Federal Register not later than 21 months after 
        the date of enactment of the PROGRESS for Indian Tribes 
        Act.
          (3) Expiration of authority The authority to 
        promulgate regulations under paragraph (1) shall expire 
        on the date that is 30 months after the date of 
        enactment of the PROGRESS for Indian Tribes Act.
  (b) Committee
          (1) Membership A negotiated rulemaking committee 
        established pursuant to section 565 of title 5, United 
        States Code, to carry out this section shall have as 
        its members only representatives of the Federal 
        Government and Tribal government.
          (2) Lead agency Among the Federal representatives 
        described in paragraph (1), the Office of Self-
        Governance shall be the lead agency for the Department.
  (c) Adaptation of procedures The Secretary shall adapt the 
negotiated rulemaking procedures to the unique context of self-
governance and the government-to-government relationship 
between the United States and Indian Tribes.
  (d) Effect
          (1) Repeal The Secretary may repeal any regulation 
        that is inconsistent with this Act.
          (2) Conflicting provisions Subject to section 101(a) 
        of the PROGRESS for Indian Tribes Act and except with 
        respect to programs described under section 403(c), 
        this title shall supersede any conflicting provision of 
        law (including any conflicting regulations).
          (3) Effectiveness without regard to regulations The 
        lack of promulgated regulations on an issue shall not 
        limit the effect or implementation of this title.

SEC. 414. EFFECT OF CIRCULARS, POLICIES, MANUALS, GUIDANCE, AND RULES

  Unless expressly agreed to by a participating Indian Tribe in 
a compact or funding agreement, the participating Indian Tribe 
shall not be subject to any agency circular, policy, manual, 
guidance, or rule adopted by the Department, except for--
          (1) the eligibility provisions of section 105(g); and
          (2) regulations promulgated pursuant to section 413.

SEC. 415. APPEALS

  Except as provided in section 406(d), in any administrative 
action, appeal, or civil action for judicial review of any 
decision made by the Secretary under this title, the Secretary 
shall have the burden of proof of demonstrating by a 
preponderance of the evidence--
          (1) the validity of the grounds for the decision; and
          (2) the consistency of the decision with the 
        requirements and policies of this title.

SEC. 416. APPLICATION OF OTHER PROVISIONS

  Section 314 of the Department of the Interior and Related 
Agencies Appropriations Act, 1991 (Public Law 101-512; 104 
Stat. 1959), shall apply to compacts and funding agreements 
entered into under this title.

SEC. 417. AUTHORIZATION OF APPROPRIATIONS

  There are authorized to be appropriated such sums as may be 
necessary to carry out this title.

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         Supplemental Minority, Additional, or Dissenting Views

    None.