[Congressional Bills 105th Congress]
[From the U.S. Government Publishing Office]
[H.R. 1833 Engrossed in House (EH)]


  2d Session

                               H. R. 1833

_______________________________________________________________________

                                 AN ACT

To amend the Indian Self-Determination and Education Assistance Act to 
  provide for further self-governance by Indian tribes, and for other 
                               purposes.
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
105th CONGRESS
  2d Session
                                H. R. 1833

_______________________________________________________________________

                                 AN ACT


 
To amend the Indian Self-Determination and Education Assistance Act to 
  provide for further self-governance by Indian tribes, and for other 
                               purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Tribal Self-Governance Amendments of 
1998''.

SEC. 2. FINDINGS.

    Congress finds that--
            (1) the tribal right of self-government flows from the 
        inherent sovereignty of Indian tribes and nations;
            (2) the United States recognizes a special government-to-
        government relationship with Indian tribes, including the right 
        of the Indian tribes to self-governance, as reflected in the 
        Constitution, treaties, Federal statutes, and the course of 
        dealings of the United States with Indian tribes;
            (3) although progress has been made, the Federal 
        bureaucracy, with its centralized rules and regulations, has 
        eroded tribal self-governance and dominates tribal affairs;
            (4) the Tribal Self-Governance Demonstration Project, 
        established under title III of the Indian Self-Determination 
        and Education Assistance Act (25 U.S.C. 450f note) was designed 
        to improve and perpetuate the government-to-government 
        relationship between Indian tribes and the United States and to 
        strengthen tribal control over Federal funding and program 
        management;
            (5) although the Federal Government has made considerable 
        strides in improving Indian health care, it has failed to fully 
        meet its trust responsibilities and to satisfy its obligations 
        to the Indian tribes under treaties and other laws; and
            (6) Congress has reviewed the results of the Tribal Self-
        Governance Demonstration Project and finds that transferring 
        full control and funding to tribal governments, upon tribal 
        request, over decision making for Federal programs, services, 
        functions, and activities (or portions thereof)--
                    (A) is an appropriate and effective means of 
                implementing the Federal policy of government-to-
                government relations with Indian tribes; and
                    (B) strengthens the Federal policy of Indian self-
                determination.

SEC. 3. DECLARATION OF POLICY.

    It is the policy of Congress to--
            (1) permanently establish and implement tribal self-
        governance within the Department of Health and Human Services;
            (2) call for full cooperation from the Department of Health 
        and Human Services and its constituent agencies in the 
        implementation of tribal self-governance--
                    (A) to enable the United States to maintain and 
                improve its unique and continuing relationship with, 
                and responsibility to, Indian tribes;
                    (B) to permit each Indian tribe to choose the 
                extent of its participation in self-governance in 
                accordance with the provisions of the Indian Self-
                Determination and Education Assistance Act relating to 
                the provision of Federal services to Indian tribes;
                    (C) to ensure the continuation of the trust 
                responsibility of the United States to Indian tribes 
                and Indian individuals;
                    (D) to affirm and enable the United States to 
                fulfill its obligations to the Indian tribes under 
                treaties and other laws;
                    (E) to strengthen the government-to-government 
                relationship between the United States and Indian 
                tribes through direct and meaningful consultation with 
                all tribes;
                    (F) to permit an orderly transition from Federal 
                domination of programs and services to provide Indian 
                tribes with meaningful authority, control, funding, and 
                discretion to plan, conduct, redesign, and administer 
                programs, services, functions, and activities (or 
                portions thereof) that meet the needs of the individual 
                tribal communities;
                    (G) to provide for a measurable parallel reduction 
                in the Federal bureaucracy as programs, services, 
                functions, and activities (or portions thereof) are 
                assumed by Indian tribes;
                    (H) to encourage the Secretary to identify all 
                programs, services, functions, and activities (or 
                portions thereof) of the Department of Health and Human 
                Services that may be managed by an Indian tribe under 
                this Act and to assist Indian tribes in assuming 
                responsibility for such programs, services, functions, 
                and activities (or portions thereof); and
                    (I) to provide Indian tribes with the earliest 
                opportunity to administer programs, services, 
                functions, and activities (or portions thereof) from 
                throughout the Department of Health and Human Services.

SEC. 4. TRIBAL SELF-GOVERNANCE.

    The Indian Self-Determination and Education Assistance Act (25 
U.S.C. 450 et seq.) is amended by adding at the end the following new 
titles:

                   ``TITLE V--TRIBAL SELF-GOVERNANCE

``SEC. 501. ESTABLISHMENT.

    ``The Secretary of Health and Human Services shall establish and 
carry out a program within the Indian Health Service of the Department 
of Health and Human Services to be known as the `Tribal Self-Governance 
Program' in accordance with this title.

``SEC. 502. DEFINITIONS.

    ``(a) In General.--For purposes of this title--
            ``(1) the term `construction project' means an organized 
        noncontinuous undertaking to complete a specific set of 
        predetermined objectives for the planning, environmental 
        determination, design, construction, repair, improvement, or 
        expansion of buildings or facilities, as described in a 
        construction project agreement. The term `construction project' 
        does not mean construction program administration and 
        activities described in paragraphs (1) through (3) of section 
        4(m), which may otherwise be included in a funding agreement 
        under this title;
            ``(2) the term `construction project agreement' means a 
        negotiated agreement between the Secretary and an Indian tribe 
        which at a minimum--
                    ``(A) establishes project phase start and 
                completion dates;
                    ``(B) defines a specific scope of work and 
                standards by which it will be accomplished;
                    ``(C) identifies the responsibilities of the Indian 
                tribe and the Secretary;
                    ``(D) addresses environmental considerations;
                    ``(E) identifies the owner and operations/
                maintenance entity of the proposed work;
                    ``(F) provides a budget;
                    ``(G) provides a payment process; and
                    ``(H) establishes the duration of the agreement 
                based on the time necessary to complete the specified 
                scope of work, which may be 1 or more years;
            ``(3) the term `inherent Federal functions' means those 
        Federal functions which cannot legally be delegated to Indian 
        tribes;
            ``(4) the term `inter-tribal consortium' means a coalition 
        of two or more separate Indian tribes that join together for 
        the purpose of participating in self-governance, including, but 
        not limited to, a tribal organization;
            ``(5) the term `gross mismanagement' means a significant, 
        clear, and convincing violation of compact, funding agreement, 
        or regulatory, or statutory requirements applicable to Federal 
        funds transferred to a tribe by a compact or funding agreement 
        that results in a significant reduction of funds available for 
        the programs, services, functions, or activities (or portions 
        thereof) assumed by an Indian tribe;
            ``(6) the term `tribal shares' means an Indian tribe's 
        portion of all funds and resources that support secretarial 
        programs, services, functions, and activities (or portions 
        thereof) that are not required by the Secretary for performance 
        of inherent Federal functions;
            ``(7) the term `Secretary' means the Secretary of Health 
        and Human Services; and
            ``(8) the term `self-governance' means the program 
        established pursuant to section 501.
    ``(b) Indian Tribe.--Where an Indian tribe has authorized another 
Indian tribe, an inter-tribal consortium, or a tribal organization to 
plan for or carry out programs, services, functions, or activities (or 
portions thereof) on its behalf under this title, the authorized Indian 
tribe, inter-tribal consortium, or tribal organization shall have the 
rights and responsibilities of the authorizing Indian tribe (except as 
otherwise provided in the authorizing resolution or in this title). In 
such event, the term `Indian tribe' as used in this title shall include 
such other authorized Indian tribe, inter-tribal consortium, or tribal 
organization.

``SEC. 503. SELECTION OF PARTICIPATING INDIAN TRIBES.

    ``(a) Continuing Participation.--Each Indian tribe that is 
participating in the Tribal Self-Governance Demonstration Project under 
title III on the date of enactment of this title may elect to 
participate in self-governance under this title under existing 
authority as reflected in tribal resolutions.
    ``(b) Additional Participants.--
            ``(1) In addition to those Indian tribes participating in 
        self-governance under subsection (a), each year an additional 
        50 Indian tribes that meet the eligibility criteria specified 
        in subsection (c) shall be entitled to participate in self-
        governance.
            ``(2)(A) An Indian tribe that has withdrawn from 
        participation in an inter-tribal consortium or tribal 
        organization, in whole or in part, shall be entitled to 
        participate in self-governance provided the Indian tribe meets 
        the eligibility criteria specified in subsection (c).
            ``(B) If an Indian tribe has withdrawn from participation 
        in an inter-tribal consortium or tribal organization, it shall 
        be entitled to its tribal share of funds supporting those 
        programs, services, functions, and activities (or portions 
        thereof) that it will be carrying out under its compact and 
        funding agreement.
            ``(C) In no event shall the withdrawal of an Indian tribe 
        from an inter-tribal consortium or tribal organization affect 
        the eligibility of the inter-tribal consortium or tribal 
        organization to participate in self-governance.
    ``(c) Applicant Pool.--The qualified applicant pool for self-
governance shall consist of each Indian 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 governing body (or 
        bodies) of the Indian tribe or tribes to be served; and
            ``(3) has demonstrated, for the previous 3 fiscal years, 
        financial stability and financial management capability.
Evidence that during such years the Indian tribe had no uncorrected 
significant and material audit exceptions in the required annual audit 
of the Indian tribe's self-determination contracts or self-governance 
funding agreements shall be conclusive evidence of the required 
stability and capability for the purposes of this subsection.
    ``(d) Planning Phase.--Each Indian tribe seeking participation in 
self-governance shall complete a planning phase. The planning phase 
shall be conducted to the satisfaction of the Indian tribe and shall 
include--
            ``(1) legal and budgetary research; and
            ``(2) internal tribal government planning and 
        organizational preparation relating to the administration of 
        health care programs.
    ``(e) Grants.--Subject to the availability of appropriations, any 
Indian tribe meeting the requirements of paragraphs (2) and (3) of 
subsection (c) shall be eligible for grants--
            ``(1) to plan for participation in self-governance; and
            ``(2) 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.
    ``(f) Receipt of Grant Not Required.--Receipt of a grant under 
subsection (e) shall not be a requirement of participation in self-
governance.

``SEC. 504. COMPACTS.

    ``(a) Compact Required.--The Secretary shall negotiate and enter 
into a written compact with each Indian tribe participating in self-
governance in a manner consistent with the Federal Government's trust 
responsibility, treaty obligations, and the government-to-government 
relationship between Indian tribes and the United States.
    ``(b) Contents.--Each compact required under subsection (a) shall 
set forth the general terms of the government-to-government 
relationship between the Indian tribe and the Secretary, including such 
terms as the parties intend shall control year after year. Such 
compacts may only be amended by mutual agreement of the parties.
    ``(c) Existing Compacts.--An Indian tribe participating in the 
Tribal Self-Governance Demonstration Project under title III on the 
date of enactment of this title shall have the option at any time 
thereafter to--
            ``(1) retain its Tribal Self-Governance Demonstration 
        Project compact (in whole or in part) to the extent the 
        provisions of such compact are not directly contrary to any 
        express provision of this title, or
            ``(2) negotiate in lieu thereof (in whole or in part) a new 
        compact in conformity with this title.
    ``(d) Term and Effective Date.--The effective date of a compact 
shall be the date of the approval and execution by the Indian tribe or 
another date agreed upon by the parties, and shall remain in effect for 
so long as permitted by Federal law or until terminated by mutual 
written agreement, retrocession, or reassumption.

``SEC. 505. FUNDING AGREEMENTS.

    ``(a) Funding Agreement Required.--The Secretary shall negotiate 
and enter into a written funding agreement with each Indian tribe 
participating in self-governance in a manner consistent with the 
Federal Government's trust responsibility, treaty obligations, and the 
government-to-government relationship between Indian tribes and the 
United States.
    ``(b) Contents.--Each funding agreement required under subsection 
(a) shall, as determined by the Indian tribe, authorize the Indian 
tribe to plan, conduct, consolidate, administer, and receive full 
tribal share funding, including tribal shares of Indian Health Service 
competitive grants (excluding congressionally earmarked competitive 
grants), for all programs, services, functions, and activities (or 
portions thereof), that are carried out for the benefit of Indians 
because of their status as Indians without regard to the agency or 
office of the Indian Health Service within which the program, service, 
function, or activity (or portion thereof) is performed. Such programs, 
services, functions, or activities (or portions thereof) include all 
programs, services, functions, activities (or portions thereof) where 
Indian tribes or Indians are primary or significant beneficiaries, 
administered by the Department of Health and Human Services through the 
Indian Health Service and grants (which may be added to a funding 
agreement after award of such grants) and all local, field, service 
unit, area, regional, and central headquarters or national office 
functions administered under the authority of--
            ``(1) the Act of November 2, 1921 (25 U.S.C. 13);
            ``(2) the Act of April 16, 1934 (25 U.S.C. 452 et seq.);
            ``(3) the Act of August 5, 1954 (68 Stat. 674);
            ``(4) the Indian Health Care Improvement Act (25 U.S.C. 
        1601 et seq.); or
            ``(5) the Indian Alcohol and Substance Abuse Prevention and 
        Treatment Act of 1986 (25 U.S.C. 2401 et seq.).
    ``(c) Inclusion in Compact or Funding Agreement.--Indian tribes or 
Indians need not be identified in the authorizing statute for a program 
or element of a program to be eligible for inclusion in a compact or 
funding agreement under this title.
    ``(d) Funding Agreement Terms.--Each funding agreement shall set 
forth terms that generally identify the programs, services, functions, 
and activities (or portions thereof) to be performed or administered, 
the general budget category assigned, the funds to be provided, 
including those to be provided on a recurring basis, the time and 
method of transfer of the funds, the responsibilities of the Secretary, 
and any other provisions to which the Indian tribe and the Secretary 
agree.
    ``(e) Subsequent Funding Agreements.--Absent notification from an 
Indian tribe that is withdrawing or retroceding the operation of one or 
more programs, services, functions, or activities (or portions thereof) 
identified in a funding agreement, or unless otherwise agreed to by the 
parties, each funding agreement shall remain in full force and effect 
until a subsequent funding agreement is executed, and the terms of the 
subsequent funding agreement shall be retroactive to the end of the 
term of the preceding funding agreement.
    ``(f) Existing Funding Agreements.--Each Indian tribe participating 
in the Tribal Self-Governance Demonstration Project established under 
title III on the date of enactment of this title shall have the option 
at any time thereafter to--
            ``(1) retain its Tribal Self-Governance Demonstration 
        Project funding agreement (in whole or in part) to the extent 
        the provisions of such funding agreement are not directly 
        contrary to any express provision of this title; or
            ``(2) adopt in lieu thereof (in whole or in part) a new 
        funding agreement in conformity with this title.
    ``(g) Stable Base Funding.--At the option of an Indian tribe, a 
funding agreement may provide for a stable base budget specifying the 
recurring funds (including, for purposes of this provision, funds 
available under section 106(a) of the Act) to be transferred to such 
Indian tribe, for such period as may be specified in the funding 
agreement, subject to annual adjustment only to reflect changes in 
congressional appropriations by sub-sub activity excluding earmarks.

``SEC. 506. GENERAL PROVISIONS.

    ``(a) Applicability.--The provisions of this section shall apply to 
compacts and funding agreements negotiated under this title and an 
Indian tribe may, at its option, include provisions that reflect such 
requirements in a compact or funding agreement.
    ``(b) Conflicts of Interest.--Indian tribes participating in self-
governance under this title shall ensure that internal measures are in 
place to address conflicts of interest in the administration of self-
governance programs, services, functions, or activities (or portions 
thereof).
    ``(c) Audits.--
            ``(1) Single agency audit act.--The provisions of chapter 
        75 of title 31, United States Code, requiring a single agency 
        audit report shall apply to funding agreements 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 section 106 or other provisions 
        of law, or by any exemptions to applicable Office of Management 
        and Budget Circulars subsequently granted by Office of 
        Management and Budget. No other audit or accounting standards 
        shall be required by the Secretary. Any claim by the Federal 
        Government against the Indian tribe relating to funds received 
        under a funding agreement based on any audit under this 
        subsection shall be subject to the provisions of section 
        106(f).
    ``(d) Records.--
            ``(1) In general.--Unless an Indian tribe specifies 
        otherwise in the compact or funding agreement, records of the 
        Indian tribe shall not be considered Federal records for 
        purposes of chapter 5 of title 5, United States Code.
            ``(2) Recordkeeping system.--The Indian tribe shall 
        maintain a recordkeeping system, and, after 30 days advance 
        notice, provide the Secretary with reasonable access to such 
        records to enable the Department of Health and Human Services 
        to meet its minimum legal recordkeeping system requirements 
        under sections 3101 through 3106 of title 44, United States 
        Code.
    ``(e) Redesign and Consolidation.--An Indian tribe may redesign or 
consolidate programs, services, functions, and activities (or portions 
thereof) included in a funding agreement under section 505 and 
reallocate or redirect funds for such programs, services, functions, 
and activities (or portions thereof) in any manner which the Indian 
tribe deems to be in the best interest of the health and welfare of the 
Indian community being served, only if the redesign or consolidation 
does not have the effect of denying eligibility for services to 
population groups otherwise eligible to be served under Federal law.
    ``(f) Retrocession.--An Indian tribe may retrocede, fully or 
partially, to the Secretary programs, services, functions, or 
activities (or portions thereof) included in the compact or funding 
agreement. Unless the Indian tribe rescinds the request for 
retrocession, such retrocession will become effective within the time 
frame specified by the parties in the compact or funding agreement. In 
the absence of such a specification, such retrocession shall become 
effective on--
            ``(1) the earlier of--
                    ``(A) one year from the date of submission of such 
                request; or
                    ``(B) the date on which the funding agreement 
                expires; or
            ``(2) such date as may be mutually agreed by the Secretary 
        and the Indian tribe.
    ``(g) Withdrawal.--
            ``(1) Process.--An Indian tribe may fully or partially 
        withdraw from a participating inter-tribal consortium or tribal 
        organization its share of any program, function, service, or 
        activity (or portions thereof) included in a compact or funding 
        agreement. Such withdrawal shall become effective within the 
        time frame specified in the resolution which authorizes 
        transfer to the participating tribal organization or inter-
        tribal consortium. In the absence of a specific time frame set 
        forth in the resolution, such withdrawal shall become effective 
        on--
                    ``(A) the earlier of--
                            ``(i) one year from the date of submission 
                        of such request; or
                            ``(ii) the date on which the funding 
                        agreement expires; or
                    ``(B) such date as may be mutually agreed upon by 
                the Secretary, the withdrawing Indian tribe, and the 
                participating tribal organization or inter-tribal 
                consortium that has signed the compact or funding 
                agreement on behalf of the withdrawing Indian tribe, 
                inter-tribal consortium, or tribal organization.
            ``(2) Distribution of funds.--When an Indian tribe or 
        tribal organization eligible to enter into a self-determination 
        contract under title I or a compact or funding agreement under 
        this title fully or partially withdraws from a participating 
        inter-tribal consortium or tribal organization, the withdrawing 
        Indian tribe or tribal organization shall be entitled to its 
        tribal share of funds supporting those programs, services, 
        functions, or activities (or portions thereof) which it 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 in the funding agreement of 
        the inter-tribal consortium or tribal organization), and such 
        funds shall be transferred from the funding agreement of the 
        inter-tribal consortium or tribal organization, provided that 
        the provisions of sections 102 and 105(i), as appropriate, 
        shall apply to such withdrawing Indian tribe.
            ``(3) Regaining mature contract status.--If an Indian tribe 
        elects to operate all or some programs, services, functions, or 
        activities (or portions thereof) 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.
    ``(h) Nonduplication.--For the period for which, and to the extent 
to which, funding is provided under this title or under the compact or 
funding agreement, the Indian tribe shall not be entitled to contract 
with the Secretary for such funds under section 102, except that such 
Indian tribe shall be eligible for new programs on the same basis as 
other Indian tribes.

``SEC. 507. PROVISIONS RELATING TO THE SECRETARY.

    ``(a) Mandatory Provisions.--
            ``(1) Health status reports.--Compacts or funding 
        agreements negotiated between the Secretary and an Indian tribe 
        shall include a provision that requires the Indian tribe to 
        report on health status and service delivery--
                    ``(A) to the extent such data is not otherwise 
                available to the Secretary and specific funds for this 
                purpose are provided by the Secretary under the funding 
                agreement; and
                    ``(B) if such reporting shall impose minimal 
                burdens on the participating Indian tribe and such 
                requirements are promulgated under section 517.
            ``(2) Reassumption--(A) Compacts and funding agreements 
        negotiated between the Secretary and an Indian tribe shall 
        include a provision authorizing the Secretary to reassume 
        operation of a program, service, function, or activity (or 
        portions thereof) and associated funding if there is a specific 
        finding relative to that program, service, function, or 
        activity (or portion thereof) of--
                    ``(i) imminent endangerment of the public health 
                caused by an act or omission of the Indian tribe, and 
                the imminent endangerment arises out of a failure to 
                carry out the compact or funding agreement; or
                    ``(ii) gross mismanagement with respect to funds 
                transferred to a tribe by a compact or funding 
                agreement, as determined by the Secretary in 
                consultation with the Inspector General, as 
                appropriate.
            ``(B) The Secretary shall not reassume operation of a 
        program, service, function, or activity (or portions thereof) 
        unless (i) the Secretary has first provided written notice and 
        a hearing on the record to the Indian tribe; and (ii) the 
        Indian tribe has not taken corrective action to remedy the 
        imminent endangerment to public health or gross mismanagement.
            ``(C) Notwithstanding subparagraph (B), the Secretary may, 
        upon written notification to the tribe, immediately reassume 
        operation of a program, service, function, or activity (or 
        portion thereof) and associated funding if (i) the Secretary 
        makes a finding of imminent substantial and irreparable 
        endangerment of the public health caused by an act or omission 
        of the Indian tribe; and (ii) the endangerment arises out of a 
        failure to carry out the compact or funding agreement. If the 
        Secretary reassumes operation of a program, service, function, 
        or activity (or portion thereof) under this subparagraph, the 
        Secretary shall provide the tribe with a hearing on the record 
        not later than 10 days after such reassumption.
            ``(D) In any hearing or appeal involving a decision to 
        reassume operation of a program, service, function, or activity 
        (or portion thereof), the Secretary shall have the burden of 
        proof of demonstrating by clear and convincing evidence the 
        validity of the grounds for the reassumption.
    ``(b) Final Offer.--In the event 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. Not more than 45 days 
after such submission, or within a longer time agreed upon by the 
Indian tribe, the Secretary shall review and make a determination with 
respect to such offer. In the absence of a timely rejection of the 
offer, in whole or in part, made in compliance with subsection (c), the 
offer shall be deemed agreed to by the Secretary.
    ``(c) Rejection of Final Offers.--If the Secretary rejects an offer 
made under subsection (b) (or one or more provisions or funding levels 
in such offer), the Secretary shall provide--
            ``(1) a 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--
                    ``(A) the amount of funds proposed in the final 
                offer exceeds the applicable funding level to which the 
                Indian tribe is entitled under this title;
                    ``(B) the program, function, service, or activity 
                (or portion thereof) that is the subject of the final 
                offer is an inherent Federal function that cannot 
                legally be delegated to an Indian tribe;
                    ``(C) the Indian tribe cannot carry out the 
                program, function, service, or activity (or portion 
                thereof) in a manner that would not result in 
                significant danger or risk to the public health; or
                    ``(D) the tribe is not eligible to participate in 
                self-governance under section 503;
            ``(2) technical assistance to overcome the objections 
        stated in the notification required by paragraph (1);
            ``(3) 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, provided that the Indian tribe may, in lieu 
        of filing such appeal, directly proceed to initiate an action 
        in a Federal district court pursuant to section 110(a); and
            ``(4) the Indian tribe with the option of entering into the 
        severable portions of a final proposed compact or funding 
        agreement, or provision thereof, (including 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. If an Indian tribe 
        exercises the option specified herein, it shall retain the 
        right to appeal the Secretary's rejection under this section, 
        and paragraphs (1), (2), and (3) shall only apply to that 
        portion of the proposed final compact, funding agreement or 
        provision thereof that was rejected by the Secretary.
    ``(d) Burden of Proof.--With respect to any hearing or appeal or 
civil action conducted pursuant to this section, the Secretary shall 
have the burden of demonstrating by clear and convincing evidence the 
validity of the grounds for rejecting the offer (or a provision 
thereof) made under subsection (b).
    ``(e) Good Faith.--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. The Secretary 
shall carry out this title in a manner that maximizes the policy of 
tribal self-governance, consistent with section 3.
    ``(f) Savings.--To the extent that programs, functions, services, 
or activities (or portions thereof) carried out by Indian tribes 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 508(c), the 
Secretary shall make such savings available to the Indian tribes, 
inter-tribal consortia, or tribal organizations for the provision of 
additional services to program beneficiaries in a manner equitable to 
directly served, contracted, and compacted programs.
    ``(g) Trust Responsibility.--The Secretary is prohibited 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, other laws, or 
court decisions.
    ``(h) Decisionmaker.--A decision that constitutes final agency 
action and relates to an appeal within the Department of Health and 
Human Services conducted under subsection (c) shall be made either--
            ``(1) 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 in which the decision that is 
        the subject of the appeal was made; or
            ``(2) by an administrative judge.

``SEC. 508. TRANSFER OF FUNDS.

    ``(a) 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 resolutions. In any instance where 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.
    ``(b) MultiYear Funding.--The Secretary is hereby authorized to 
employ, upon tribal request, multiyear funding agreements, and 
references in this title to funding agreements shall include such 
multiyear agreements.
    ``(c) Amount of Funding.--The Secretary shall provide funds under a 
funding agreement under this title in an amount equal to the amount 
that the Indian tribe would have been entitled to receive under self-
determination contracts under this Act, including amounts for direct 
program costs specified under section 106(a)(1) and amounts for 
contract support costs specified under sections 106(a)(2), (a)(3), 
(a)(5), and (a)(6), including 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, all without regard to the 
organizational level within the Department where such functions are 
carried out.
    ``(d) Prohibitions.--The Secretary is expressly prohibited from--
            ``(1) failing or refusing 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 Act, except 
        as required by Federal law;
            ``(2) withholding portions of such funds for transfer over 
        a period of years; and
            ``(3) reducing the amount of funds required herein--
                    ``(A) to make funding available for self-governance 
                monitoring or administration by the Secretary;
                    ``(B) in subsequent years, except pursuant to--
                            ``(i) a reduction in appropriations from 
                        the previous fiscal year for the program or 
                        function to be included in a compact or funding 
                        agreement;
                            ``(ii) a congressional directive in 
                        legislation or 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 a project, activity, or 
                        program for which such funds were provided;
                    ``(C) to pay for Federal functions, including 
                Federal pay costs, Federal employee retirement 
                benefits, automated data processing, technical 
                assistance, and monitoring of activities under this 
                Act; or
                    ``(D) to pay for costs of Federal personnel 
                displaced by self-determination contracts under this 
                Act or self-governance;
except that such funds may be increased by the Secretary if necessary 
to carry out this Act or as provided in section 105(c)(2).
    ``(e) Other Resources.--In the event 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 is authorized to transfer such personnel, 
supplies, or resources to the Indian tribe.
    ``(f) Reimbursement to Indian Health Service.--With respect to 
functions transferred by the Indian Health Service to an Indian tribe, 
the Indian Health Service is authorized to provide goods and services 
to the Indian tribe, on a reimbursable basis, including payment in 
advance with subsequent adjustment, and the reimbursements received 
therefrom, along with the funds received from the Indian tribe pursuant 
to this title, may be credited to the same or subsequent appropriation 
account which provided the funding, such amounts to remain available 
until expended.
    ``(g) 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.
    ``(h) Interest or Other Income on Transfers.--An Indian tribe is 
entitled to retain interest earned on any funds paid under a compact or 
funding agreement to carry out governmental or health purposes and such 
interest shall not diminish the amount of funds the Indian tribe is 
authorized to receive under its funding agreement in the year the 
interest is earned or in any subsequent fiscal year. Funds transferred 
under this Act shall be managed using the prudent investment standard.
    ``(i) Carryover of Funds.--All funds paid to an Indian tribe in 
accordance with a compact or funding agreement shall remain available 
until expended. In the event that an Indian tribe elects to carry over 
funding from one year to the next, such carryover shall not diminish 
the amount of funds the Indian tribe is authorized to receive under its 
funding agreement in that or any subsequent fiscal year.
    ``(j) Program Income.--All medicare, medicaid, or other program 
income earned by an Indian tribe shall be treated as supplemental 
funding to that negotiated in the funding agreement and the Indian 
tribe may retain all such income and expend such funds in the current 
year or in future years except to the extent that the Indian Health 
Care Improvement Act (25 U.S.C. 1601 et seq.) provides otherwise for 
medicare and medicaid receipts, and such funds shall not result in any 
offset or reduction in the amount of funds the Indian tribe is 
authorized to receive under its funding agreement in the year the 
program income is received or for any subsequent fiscal year.
    ``(k) Limitation of Costs.--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. If at any time the Indian tribe has reason to believe that 
the total amount provided for a specific activity in the compact or 
funding agreement is insufficient the Indian tribe shall provide 
reasonable notice of such insufficiency to the Secretary. If 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.

``SEC. 509. CONSTRUCTION PROJECTS.

    ``(a) In General.--Indian tribes participating in tribal self-
governance may carry out construction projects under this title if they 
elect to assume all Federal responsibilities under the National 
Environmental Policy Act of 1969, the Historic Preservation Act , and 
related provisions of law that would apply if the Secretary were to 
undertake a construction project, by adopting a resolution (1) 
designating a certifying officer to represent the Indian tribe and to 
assume the status of a responsible Federal official under such laws, 
and (2) accepting the jurisdiction of the Federal court for the purpose 
of enforcement of the responsibilities of the responsible Federal 
official under such environmental laws.
    ``(b) Negotiations.--Construction project proposals shall be 
negotiated pursuant to the statutory process in section 105(m) and 
resulting construction project agreements shall be incorporated into 
funding agreements as addenda.
    ``(c) Codes and Standards.--The Indian tribe and the Secretary 
shall agree upon and specify appropriate buildings codes and 
architectural/engineering standards (including health and safety) which 
shall be in conformity with nationally recognized standards for 
comparable projects.
    ``(d) Responsibility for Completion.--The Indian tribe shall assume 
responsibility for the successful completion of the construction 
project in accordance with the negotiated construction project 
agreement.
    ``(e) Funding.--Funding for construction projects carried out under 
this title shall be included in funding agreements as annual advance 
payments, with semiannual payments at the option of the Indian tribe. 
Annual advance and semiannual payment amounts shall be determined based 
on mutually agreeable project schedules reflecting work to be 
accomplished within the advance payment period, work accomplished and 
funds expended in previous payment periods, and the total prior 
payments. The Secretary shall include associated project contingency 
funds with each advance payment installment. The Indian tribe shall be 
responsible for the management of the contingency funds included in 
funding agreements.
    ``(f) Approval.--The Secretary shall have at least one opportunity 
to approve project planning and design documents prepared by the Indian 
tribe in advance of construction of the facilities specified in the 
scope of work for each negotiated construction project agreement or 
amendment thereof which results in a significant change in the original 
scope of work. The Indian tribe shall provide the Secretary with 
project progress and financial reports not less than semiannually. The 
Secretary may conduct on-site project oversight visits semiannually or 
on an alternate schedule agreed to by the Secretary and the Indian 
tribe.
    ``(g) Wages.--All laborers and mechanics employed by contractors 
and subcontractors in the construction, alteration, or repair, 
including painting or decorating of building or other facilities in 
connection with construction projects undertaken by self-governance 
Indian tribes under this Act, shall be paid wages at not less than 
those prevailing wages on similar construction in the locality as 
determined by the Secretary of Labor in accordance with the Davis-Bacon 
Act of March 3, 1931 (46 Stat. 1494). With respect to construction, 
alteration, or repair work to which the Act of March 3, 1921, is 
applicable under the terms of this section, the Secretary of Labor 
shall have the authority and functions set forth in Reorganization Plan 
Numbered 14, of 1950, and section 2 of the Act of June 13, 1934 (48 
Stat. 948).
    ``(h) Application of Other Laws.--Unless otherwise agreed to by the 
Indian tribe, no provision of the Office of Federal Procurement Policy 
Act, the Federal Acquisition Regulations issued pursuant thereto, or 
any other law or regulation pertaining to Federal procurement 
(including Executive orders) shall apply to any construction project 
conducted under this title.

``SEC. 510. FEDERAL PROCUREMENT LAWS AND REGULATIONS.

    ``Notwithstanding any other provision of law, unless expressly 
agreed to by the participating Indian tribe, the compacts and funding 
agreements entered into under this title shall not be subject to 
Federal contracting or cooperative agreement laws and regulations 
(including Executive orders and the Secretary's regulations), except to 
the extent that such laws expressly apply to Indian tribes.

``SEC. 511. CIVIL ACTIONS.

    ``(a) Contract Defined.--For the purposes of section 110, the term 
`contract' shall include compacts and funding agreements entered into 
under this title.
    ``(b) Applicability of Certain Laws.--Section 2103 of the Revised 
Statutes of the United States Code (25 U.S.C. 81) and section 16 of the 
Act of June 18, 1934 (25 U.S.C. 476), shall not apply to attorney and 
other professional contracts entered into by Indian tribes 
participating in self-governance under this title.
    ``(c) References.--All references in the Indian Self-Determination 
and Education Assistance Act (25 U.S.C. 450 et seq.) to section 1 of 
the Act of June 26, 1936 (25 U.S.C. 81) are hereby deemed to include 
section 1 of the Act of July 3, 1952 (25 U.S.C. 82a).

``SEC. 512. FACILITATION.

    ``(a) Secretarial Interpretation.--Except as otherwise provided by 
law, the Secretary shall interpret all Federal laws, Executive orders 
and regulations in a manner that will facilitate--
            ``(1) the inclusion of programs, services, functions, and 
        activities (or portions thereof) and funds associated 
        therewith, in the agreements entered into under this section;
            ``(2) the implementation of compacts and funding agreements 
        entered into under this title; and
            ``(3) the achievement of tribal health goals and 
        objectives.
    ``(b) Regulation Waiver.--
            ``(1) An Indian tribe may submit a written request to waive 
        application of a regulation promulgated under this Act for a 
        compact or funding agreement entered into with the Indian 
        Health Service under this title, to the Secretary identifying 
        the applicable Federal regulation sought to be waived and the 
        basis for the request.
            ``(2) Not later than 90 days after receipt by the Secretary 
        of a written request by an Indian tribe to waive application of 
        a regulation for a compact or funding agreement entered into 
        under this title, the Secretary shall either approve or deny 
        the requested waiver in writing. 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. A failure to approve or deny a 
        waiver request not later than 90 days after receipt shall be 
        deemed an approval of such request. The Secretary's decision 
        shall be final for the Department.
    ``(c) Access to Federal Property.--In connection with any compact 
or funding agreement executed pursuant to this title or an agreement 
negotiated under the Tribal Self-Governance Demonstration Project 
established under title III, as in effect before the enactment of the 
Tribal Self-Governance Amendments of 1998, upon the request of an 
Indian tribe, the Secretary--
            ``(1) shall permit an Indian tribe to use 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 by the 
        Secretary and the tribe for their use and maintenance;
            ``(2) may donate to an Indian tribe title to any personal 
        or real property found to be excess to the needs of any agency 
        of the Department, 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 
                compact or funding agreement or purchased with funds 
                under any compact or funding agreement shall, unless 
                otherwise requested by the Indian tribe, vest in the 
                appropriate Indian tribe;
                    ``(B) if property described in subparagraph (A) has 
                a value in excess of $5,000 at the time of 
                retrocession, withdrawal, or reassumption, at the 
                option of the Secretary upon the retrocession, 
                withdrawal, or reassumption, title to such property and 
                equipment shall revert to the Department of Health and 
                Human Services; and
                    ``(C) all property referred to in subparagraph (A) 
                shall remain eligible for replacement, maintenance, and 
                improvement on the same basis as if title to such 
                property were vested in the United States; and
            ``(3) shall acquire excess or surplus Government personal 
        or real property for donation to an Indian tribe if the 
        Secretary determines the property is appropriate for use by the 
        Indian tribe for any purpose for which a compact or funding 
        agreement is authorized under this title.
    ``(d) Matching or Cost-Participation Requirement.--All funds 
provided under compacts, funding agreements, or grants made pursuant to 
this Act, shall be treated as non-Federal funds for purposes of meeting 
matching or cost participation requirements under any other Federal or 
non-Federal program.
    ``(e) State Facilitation.--States are hereby authorized and 
encouraged to enact legislation, and to enter into agreements with 
Indian tribes to facilitate and supplement the initiatives, programs, 
and policies authorized by this title and other Federal laws benefiting 
Indians and Indian tribes.
    ``(f) Rules of Construction.--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. 513. BUDGET REQUEST.

    ``(a) In General.--The President shall identify in the annual 
budget request submitted to the Congress under section 1105 of title 
31, United States Code, all funds necessary to fully fund all funding 
agreements authorized under this title, including funds specifically 
identified to fund tribal base budgets. All funds so appropriated shall 
be apportioned to the Indian Health Service. Such funds shall be 
provided to the Office of Tribal Self-Governance which shall be 
responsible for distribution of all funds provided under section 505. 
Nothing in this provision shall be construed to authorize the Indian 
Health Service to reduce the amount of funds that a self-governance 
tribe is otherwise entitled to receive under its funding agreement or 
other applicable law, whether or not such funds are made available to 
the Office of Tribal Self-Governance under this section.
    ``(b) Present Funding; Shortfalls.--In such budget request, the 
President shall identify the level of need presently funded and any 
shortfall in funding (including direct program and contract support 
costs) for each Indian tribe, either directly by the Secretary, under 
self-determination contracts, or under compacts and funding agreements 
authorized under this title.

``SEC. 514. REPORTS.

    ``(a) Annual Report.--Not later than January 1 of each year after 
the date of the enactment of this title, the Secretary shall submit to 
the Committee on Resources of the House of Representatives and the 
Committee on Indian Affairs of the Senate a written report regarding 
the administration of this title. Such report shall include a detailed 
analysis of the level of need being presently funded or unfunded for 
each Indian tribe, either directly by the Secretary, under self-
determination contracts under title I, or under compacts and funding 
agreements authorized under this Act. In compiling reports pursuant to 
this section, the Secretary may not impose any reporting requirements 
on participating Indian tribes or tribal organizations, not otherwise 
provided in this Act.
    ``(b) Contents.--The report shall be compiled from information 
contained in funding agreements, annual audit reports, and Secretarial 
data regarding the disposition of Federal funds and 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 Indian 
        tribes and their members;
            ``(3) identify the funds transferred to each self-
        governance Indian tribe and the corresponding reduction in the 
        Federal bureaucracy;
            ``(4) identify the funding formula for individual tribal 
        shares of all headquarters funds, together with the comments of 
        affected Indian tribes or tribal organizations, developed under 
        subsection (c);
            ``(5) identify amounts expended in the preceding fiscal 
        year to carry out inherent Federal functions, including an 
        identification of those functions by type and location;
            ``(6) contain a description of the method or methods (or 
        any revisions thereof) used to determine the individual tribal 
        share of funds controlled by all components of the Indian 
        Health Service (including funds assessed by any other Federal 
        agency) for inclusion in self-governance compacts or funding 
        agreements;
            ``(7) prior to being submitted to Congress, be distributed 
        to the Indian tribes for comment, such comment period to be for 
        no less than 30 days; and
            ``(8) include the separate views and comments of the Indian 
        tribes or tribal organizations.
    ``(c) Report on Fund Distribution Method.--Not later than 180 days 
after the date of enactment of this title, the Secretary shall, after 
consultation with Indian tribes, submit a written report to the 
Committee on Resources of the House of Representatives and the 
Committee on Indian Affairs of the Senate which describes the method or 
methods used to determine the individual tribal share of funds 
controlled by all components of the Indian Health Service (including 
funds assessed by any other Federal agency) for inclusion in self-
governance compacts or funding agreements.

``SEC. 515. DISCLAIMERS.

    ``(a) No Funding Reduction.--Nothing in this title shall be 
construed to limit or reduce in any way the funding for any program, 
project, or activity serving an Indian tribe under this or other 
applicable Federal law. Any Indian tribe that alleges that a compact or 
funding agreement is in violation of this section may apply the 
provisions of section 110.
    ``(b) Federal Trust and Treaty Responsibilities.--Nothing in this 
Act shall be construed to diminish in any way the trust responsibility 
of the United States to Indian tribes and individual Indians that 
exists under treaties, Executive orders, or other laws and court 
decisions.
    ``(c) Tribal Employment.--For purposes of section 2(2) of the Act 
of July 5, 1935 (49 Stat. 450, chapter 372) (commonly known as the 
National Labor Relations Act), an Indian tribe carrying out a self-
determination contract, compact, annual funding agreement, grant, or 
cooperative agreement under this Act shall not be considered an 
employer.
    ``(d) Obligations of the United States.--The Indian Health Service 
under this Act shall neither bill nor charge those Indians who may have 
the economic means to pay for services, nor require any Indian tribe to 
do so.

``SEC. 516. APPLICATION OF OTHER SECTIONS OF THE ACT.

    ``(a) Mandatory Application.--All provisions of sections 5(b), 6, 
7, 102(c) and (d), 104, 105(k) and (l), 106(a) through (k), and 111 of 
this Act and section 314 of Public Law 101-512 (coverage under the 
Federal Tort Claims Act), to the extent not in conflict with this 
title, shall apply to compacts and funding agreements authorized by 
this title.
    ``(b) Discretionary Application.--At the request of a participating 
Indian tribe, any other provision of title I, to the extent such 
provision is not in conflict with this title, shall be made a part of a 
funding agreement or compact entered into under this title. The 
Secretary is obligated to include such provision at the option of the 
participating Indian tribe or tribes. If such provision is incorporated 
it shall have the same force and effect as if it were set out in full 
in this title. In the event an Indian tribe requests such incorporation 
at the negotiation stage of a compact or funding agreement, such 
incorporation shall be deemed effective immediately and shall control 
the negotiation and resulting compact and funding agreement.

``SEC. 517. REGULATIONS.

    ``(a) In General.--
            ``(1) Not later than 90 days after the date of enactment of 
        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.
            ``(2) Proposed regulations to implement this title shall be 
        published in the Federal Register by the Secretary no later 
        than 1 year after the date of enactment of this title.
            ``(3) The authority to promulgate regulations under this 
        title shall expire 21 months after the date of enactment of 
        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 nominated by 
and be representatives of Indian tribes with funding agreements under 
this Act, and the Committee shall confer with, and accommodate 
participation by, representatives of Indian tribes, inter-tribal 
consortia, tribal organizations, and individual tribal members.
    ``(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.--The lack of promulgated regulations shall not limit 
the effect of this title.
    ``(e) Effect of Circulars, Policies, Manuals, Guidances, and 
Rules.--Unless expressly agreed to by the participating Indian tribe in 
the compact or funding agreement, the participating Indian tribe shall 
not be subject to any agency circular, policy, manual, guidance, or 
rule adopted by the Indian Health Service and the eligibility 
provisions of section 105(g).

``SEC. 518. APPEALS.

    ``In any appeal (including civil actions) involving decisions made 
by the Secretary under this title, the Secretary shall have the burden 
of proof of demonstrating by clear and convincing evidence--
            ``(1) the validity of the grounds for the decision made; 
        and
            ``(2) the decision is fully consistent with provisions and 
        policies of this title.

``SEC. 519. AUTHORIZATION OF APPROPRIATIONS.

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

  ``TITLE VI--TRIBAL SELF-GOVERNANCE--DEPARTMENT OF HEALTH AND HUMAN 
                                SERVICES

``SEC. 601. DEMONSTRATION PROJECT FEASIBILITY.

    ``(a) Study.--The Secretary shall conduct a study to determine the 
feasibility a Tribal Self-Governance Demonstration Project for 
appropriate programs, services, functions, and activities (or portions 
thereof) of the agency.
    ``(b) Considerations.--When conducting the study, the Secretary 
shall consider--
            ``(1) the probable effects on specific programs and program 
        beneficiaries of such a demonstration project;
            ``(2) statutory, regulatory, or other impediments to 
        implementation of such a demonstration project;
            ``(3) strategies for implementing such a demonstration 
        project;
            ``(4) probable costs or savings associated with such a 
        demonstration project;
            ``(5) methods to assure quality and accountability in such 
        a demonstration project; and
            ``(6) such other issues that may be determined by the 
        Secretary or developed through consultation pursuant to section 
        602.
    ``(c) Report.--Not later than 18 months after the enactment of this 
title, the Secretary shall submit a report to the Committee on 
Resources of the House of Representatives and the Committee on Indian 
Affairs of the Senate. The report shall contain--
            ``(1) the results of the study;
            ``(2) a list of programs, services, functions, and 
        activities (or portions thereof) within the agency which it 
        would be feasible to include in a Tribal Self-Governance 
        Demonstration Project;
            ``(3) a list of programs, services, functions, and 
        activities (or portions thereof) included in the list provided 
        pursuant to paragraph (2) which could be included in a Tribal 
        Self-Governance Demonstration Project without amending 
        statutes, or waiving regulations that the Secretary may not 
        waive;
            ``(4) a list of legislative actions required in order to 
        include those programs, services, functions, and activities (or 
        portions thereof) included in the list provided pursuant to 
        paragraph (2) but not included in the list provided pursuant to 
        paragraph (3) in a Tribal Self-Governance Demonstration 
        Project; and
            ``(5) any separate views of tribes and other entities 
        consulted pursuant to section 602 related to the information 
        provided pursuant to paragraph (1) through (4).

``SEC. 602. CONSULTATION.

    ``(a) Study Protocol.--
            ``(1) Consultation with indian tribes.--The Secretary shall 
        consult with Indian tribes to determine a protocol for 
        consultation under subsection (b) prior to consultation under 
        such subsection with the other entities described in such 
        subsection. The protocol shall require, at a minimum, that--
                    ``(A) the government-to-government relationship 
                with Indian tribes forms the basis for the consultation 
                process;
                    ``(B) the Indian tribes and the Secretary jointly 
                conduct the consultations required by this section; and
                    ``(C) the consultation process allow for separate 
                and direct recommendations from the Indian tribes and 
                other entities described in subsection (b).
            ``(2) Opportunity for public comment.--In determining the 
        protocol described in paragraph (1),the Secretary shall publish 
        the proposed protocol and allow a period of not less than 30 
        days for comment by entities described in subsection (b) and 
        other interested individuals, and shall take comments received 
        into account in determining the final protocol.
    ``(b) Conducting Study.--In conducting the study under this title, 
the Secretary shall consult with Indian tribes,States, counties, 
municipalities, program beneficiaries, and interested public interest 
groups, and may consult with other entities as appropriate.

``SEC. 603. DEFINITIONS.

    ``(a) In General.--For purposes of this title, the Secretary may 
use definitions provided in title V.
    ``(b) Agency.--For purposes of this title, the term `agency' shall 
mean any agency or other organizational unit of the Department of 
Health and Human Services, other than the Indian Health Service.

``SEC. 604. AUTHORIZATION OF APPROPRIATIONS.

    ``There are authorized to be appropriated for fiscal years 1999 and 
2000 such sums as may be necessary to carry out this title. Such sums 
shall remain available until expended.''.

SEC. 5. AMENDMENTS CLARIFYING CIVIL PROCEEDINGS.

    (a) Burden of Proof in District Court Actions.--Section 102(e)(1) 
of the Indian Self-Determination and Education Assistance Act (25 
U.S.C. 450f(e)(1)) is amended by inserting after ``subsection (b)(3)'' 
the following: ``or any civil action conducted pursuant to section 
110(a)''.
    (b) Effective Date.--The amendment made by this section shall apply 
to any proceedings commenced after October 25, 1994.

SEC. 6. SPEEDY ACQUISITION OF GOODS, SERVICES, OR SUPPLIES.

    Section 105(k) of the Indian Self-Determination and Education 
Assistance Act (25 U.S.C. 450j(k)) is amended--
            (1) by striking ``deemed an executive agency'' and 
        inserting ``deemed an executive agency and part of the Indian 
        Health Service''; and
            (2) by adding at the end thereof the following: ``At the 
        request of an Indian tribe, the Secretary shall 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 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.

SEC. 7. PATIENT RECORDS.

    Section 105 of the Indian Self-Determination and Education 
Assistance Act (25 U.S.C. 450j) is amended by adding at the end the 
following new subsection:
    ``(o) At the option of an Indian tribe or tribal organization, 
Indian patient records may be deemed to be Federal records under 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.''.

SEC. 8. REPEAL.

    Title III of the Indian Self-Determination and Education Assistance 
Act (25 U.S.C. 450f note) is hereby repealed.

SEC. 9. SAVINGS PROVISION.

    Funds appropriated for title III of the Indian Self-Determination 
and Education Assistance Act (25 U.S.C. 450f note) shall be available 
for use under title V of such Act.

SEC. 10. EFFECTIVE DATE.

    Except as otherwise provided, the provisions of this Act shall take 
effect on the date of the enactment of this Act.

            Passed the House of Representatives October 5, 1998.

            Attest:

                                                                 Clerk.