[Congressional Bills 106th Congress]
[From the U.S. Government Publishing Office]
[S. 1586 Engrossed in Senate (ES)]

  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
106th CONGRESS
  2d Session
                                S. 1586

_______________________________________________________________________

                                 AN ACT


 
  To reduce the fractionated ownership of Indian lands, 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 ``Indian Land Consolidation Act 
Amendments of 2000''.

                   TITLE I--INDIAN LAND CONSOLIDATION

SEC. 101. FINDINGS.

    Congress finds that--
            (1) in the 1800's and early 1900's, the United States 
        sought to assimilate Indian people into the surrounding non-
        Indian culture by allotting tribal lands to individual members 
        of Indian tribes;
            (2) as a result of the allotment Acts and related Federal 
        policies, over 90,000,000 acres of land have passed from tribal 
        ownership;
            (3) many trust allotments were taken out of trust status, 
        often without their owners consent;
            (4) without restrictions on alienation, allotment owners 
        were subject to exploitation and their allotments were often 
        sold or disposed of without any tangible or enduring benefit to 
        their owners;
            (5) the trust periods for trust allotments have been 
        extended indefinitely;
            (6) because of the inheritance provisions in the original 
        treaties or allotment Acts, the ownership of many of the trust 
        allotments that have remained in trust status has become 
        fractionated into hundreds or thousands of undivided interests, 
        many of which represent 2 percent or less of the total 
        interests;
            (7) Congress has authorized the acquisition of lands in 
        trust for individual Indians, and many of those lands have also 
        become fractionated by subsequent inheritance;
            (8) the acquisitions referred to in paragraph (7) continue 
        to be made;
            (9) the fractional interests described in this section 
        often provide little or no return to the beneficial owners of 
        those interests and the administrative costs borne by the 
        United States for those interests are inordinately high;
            (10) in Babbitt v. Youpee (117 S Ct. 727 (1997)), the 
        United States Supreme Court found the application of section 
        207 of the Indian Land Consolidation Act (25 U.S.C. 2206) to 
        the facts presented in that case to be unconstitutional, 
        forcing the Department of the Interior to address the status of 
        thousands of undivided interests in trust and restricted lands;
            (11)(A) on February 19, 1999, the Secretary of Interior 
        issued a Secretarial Order which officially reopened the 
        probate of all estates where an interest in land was ordered to 
        escheat to an Indian tribe pursuant to section 207 of the 
        Indian Land Consolidation Act (25 U.S.C. 2206); and
            (B) the Secretarial Order also directed appropriate 
        officials of the Bureau of Indian Affairs to distribute such 
        interests ``to the rightful heirs and beneficiaries without 
        regard to 25 U.S.C. 2206'';
            (12) in the absence of comprehensive remedial legislation, 
        the number of the fractional interests will continue to grow 
        exponentially;
            (13) the problem of the fractionation of Indian lands 
        described in this section is the result of a policy of the 
        Federal Government, cannot be solved by Indian tribes, and 
        requires a solution under Federal law.
            (14) any devise or inheritance of an interest in trust or 
        restricted Indian lands is a matter of Federal law; and
            (15) consistent with the Federal policy of tribal self-
        determination, the Federal Government should encourage the 
        recognized tribal government that exercises jurisdiction over a 
        reservation to establish a tribal probate code for that 
        reservation.

SEC. 102. DECLARATION OF POLICY.

    It is the policy of the United States--
            (1) to prevent the further fractionation of trust 
        allotments made to Indians;
            (2) to consolidate fractional interests and ownership of 
        those interests into usable parcels;
            (3) to consolidate fractional interests in a manner that 
        enhances tribal sovereignty;
            (4) to promote tribal self-sufficiency and self-
        determination; and
            (5) to reverse the effects of the allotment policy on 
        Indian tribes.

SEC. 103. AMENDMENTS TO THE INDIAN LAND CONSOLIDATION ACT.

    The Indian Land Consolidation Act (25 U.S.C. 2201 et seq.) is 
amended--
            (1) in section 202--
                    (A) in paragraph (1), by striking ``(1) `tribe''' 
                and inserting ``(1) `Indian tribe' or `tribe''';
                    (B) by striking paragraph (2) and inserting the 
                following:
            ``(2) `Indian' means any person who is a member of any 
        Indian tribe or is eligible to become a member of any Indian 
        tribe, or any person who has been found to meet the definition 
        of `Indian' under a provision of Federal law if the Secretary 
        determines that using such law's definition of Indian is 
        consistent with the purposes of this Act;'';
                    (C) by striking ``and'' at the end of paragraph 
                (3);
                    (D) by striking the period at the end of paragraph 
                (4) and inserting ``; and''; and
                    (E) by adding at the end the following:
            ``(5) `heirs of the first or second degree' means parents, 
        children, grandchildren, grandparents, brothers and sisters of 
        a decedent.'';
            (2) in section 205--
                    (A) in the matter preceding paragraph (1)--
                            (i) by striking ``Any Indian'' and 
                        inserting ``(a) In General.--Subject to 
                        subsection (b), any Indian'';
                            (ii) by striking the colon and inserting 
                        the following: ``. Interests owned by an Indian 
                        tribe in a tract may be included in the 
                        computation of the percentage of ownership of 
                        the undivided interests in that tract for 
                        purposes of determining whether the consent 
                        requirement under the preceding sentence has 
                        been met.'';
                            (iii) by striking ``: Provided, That--''; 
                        and inserting the following:
    ``(b) Conditions Applicable to Purchase.--Subsection (a) applies on 
the condition that--'';
                    (B) in paragraph (2)--
                            (i) by striking ``If,'' and inserting 
                        ``if''; and
                            (ii) by adding ``and'' at the end; and
                    (C) by striking paragraph (3) and inserting the 
                following:
            ``(3) the approval of the Secretary shall be required for a 
        land sale initiated under this section, except that such 
        approval shall not be required with respect to a land sale 
        transaction initiated by an Indian tribe that has in effect a 
        land consolidation plan that has been approved by the Secretary 
        under section 204.'';
            (3) by striking section 206 and inserting the following:

``SEC. 206. TRIBAL PROBATE CODES; ACQUISITIONS OF FRACTIONAL INTERESTS 
              BY TRIBES.

    ``(a) Tribal Probate Codes.--
            ``(1) In general.--Notwithstanding any other provision of 
        law, any Indian tribe may adopt a tribal probate code to govern 
        descent and distribution of trust or restricted lands that 
        are--
                    ``(A) located within that Indian tribe's 
                reservation; or
                    ``(B) otherwise subject to the jurisdiction of that 
                Indian tribe.
            ``(2) Possible inclusions.--A tribal probate code referred 
        to in paragraph (1) may include--
                    ``(A) rules of intestate succession; and
                    ``(B) other tribal probate code provisions that are 
                consistent with Federal law and that promote the 
                policies set forth in section 102 of the Indian Land 
                Consolidation Act Amendments of 2000.
            ``(3) Limitations.--The Secretary shall not approve a 
        tribal probate code if such code prevents an Indian person from 
        inheriting an interest in an allotment that was originally 
        allotted to his or her lineal ancestor.
    ``(b) Secretarial Approval.--
            ``(1) In general.--Any tribal probate code enacted under 
        subsection (a), and any amendment to such a tribal probate 
        code, shall be subject to the approval of the Secretary.
            ``(2) Review and approval.--
                    ``(A) In general.--Each Indian tribe that adopts a 
                tribal probate code under subsection (a) shall submit 
                that code to the Secretary for review. Not later than 
                180 days after a tribal probate code is submitted to 
                the Secretary under this paragraph, the Secretary shall 
                review and approve or disapprove that tribal probate 
                code.
                    ``(B) Consequence of failures to approve or 
                disapprove a tribal probate code.--If the Secretary 
                fails to approve or disapprove a tribal probate code 
                submitted for review under subparagraph (A) by the date 
                specified in that subparagraph, the tribal probate code 
                shall be deemed to have been approved by the Secretary, 
                but only to the extent that the tribal probate code is 
                consistent with Federal law and promotes the policies 
                set forth in section 102 of the Indian Land 
                Consolidation Act Amendments of 2000.
                    ``(C) Consistency of tribal probate code with 
                act.--The Secretary may not approve a tribal probate 
                code, or any amendment to such a code, under this 
                paragraph unless the Secretary determines that the 
                tribal probate code promotes the policies set forth in 
                section 102 of the Indian Land Consolidation Act 
                Amendments of 2000.
                    ``(D) Explanation.--If the Secretary disapproves a 
                tribal probate code, or an amendment to such a code, 
                under this paragraph, the Secretary shall include in 
                the notice of disapproval to the Indian tribe a written 
                explanation of the reasons for the disapproval.
                    ``(E) Amendments.--
                            ``(i) In general.--Each Indian tribe that 
                        amends a tribal probate code under this 
                        paragraph shall submit the amendment to the 
                        Secretary for review and approval. Not later 
                        than 60 days after receiving an amendment under 
                        this subparagraph, the Secretary shall review 
                        and approve or disapprove the amendment.
                            ``(ii) Consequence of failure to approve or 
                        disapprove an amendment.--If the Secretary 
                        fails to approve or disapprove an amendment 
                        submitted under clause (i), the amendment shall 
                        be deemed to have been approved by the 
                        Secretary, but only to the extent that the 
                        amendment is consistent with Federal law and 
                        promotes the policies set forth in section 102 
                        of the Indian Land Consolidation Act of 2000.
            ``(3) Effective dates.--A tribal probate code approved 
        under paragraph (2) shall become effective on the later of--
                    ``(A) the date specified in section 207(g)(5); or
                    ``(B) 180 days after the date of approval.
            ``(4) Limitations.--
                    ``(A) Tribal probate codes.--Each tribal probate 
                code enacted under subsection (a) shall apply only to 
                the estate of a decedent who dies on or after the 
                effective date of the tribal probate code.
                    ``(B) Amendments to tribal probate codes.--With 
                respect to an amendment to a tribal probate code 
                referred to in subparagraph (A), that amendment shall 
                apply only to the estate of a decedent who dies on or 
                after the effective date of the amendment.
            ``(5) Repeals.--The repeal of a tribal probate code shall--
                    ``(A) not become effective earlier than the date 
                that is 180 days after the Secretary receives notice of 
                the repeal; and
                    ``(B) apply only to the estate of a decedent who 
                dies on or after the effective date of the repeal.
    ``(c) Authority Available to Indian Tribes.--
            ``(1) In general.--If the owner of an interest in trust or 
        restricted land devises an interest in such land to a non-
        Indian under section 207(a)(6)(A), the Indian tribe that 
        exercises jurisdiction over the parcel of land involved may 
        acquire such interest by paying to the Secretary the fair 
        market value of such interest, as determined by the Secretary 
        on the date of the decedent's death. The Secretary shall 
        transfer such payment to the devisee.
            ``(2) Limitation.--
                    ``(A) In general.--Paragraph (1) shall not apply to 
                an interest in trust or restricted land if, while the 
                decedent's estate is pending before the Secretary, the 
                non-Indian devisee renounces the interest in favor of 
                an Indian person.
                    ``(B) Reservation of life estate.--A non-Indian 
                devisee described in subparagraph (A) or a non-Indian 
                devisee described in section 207(a)(6)(B), may retain a 
                life estate in the interest involved, including a life 
                estate to the revenue produced from the interest. The 
                amount of any payment required under paragraph (1) 
                shall be reduced to reflect the value of any life 
                estate reserved by a non-Indian devisee under this 
                subparagraph.
            ``(3) Payments.--With respect to payments by an Indian 
        tribe under paragraph (1), the Secretary shall--
                    ``(A) upon the request of the tribe, allow a 
                reasonable period of time, not to exceed 2 years, for 
                the tribe to make payments of amounts due pursuant to 
                paragraph (1); or
                    ``(B) recognize alternative agreed upon exchanges 
                of consideration or extended payment terms between the 
                non-Indian devisee described in paragraph (1) and the 
                tribe in satisfaction of the payment under paragraph 
                (1).
    ``(d) Use of Proposed Findings by Tribal Justice Systems.--
            ``(1) Tribal justice system defined.--In this subsection, 
        the term `tribal justice system' has the meaning given that 
        term in section 3 of the Indian Tribal Justice Act (25 U.S.C. 
        3602).
            ``(2) Regulations.--The Secretary by regulation may provide 
        for the use of findings of fact and conclusions of law, as 
        rendered by a tribal justice system, as proposed findings of 
        fact and conclusions of law in the adjudication of probate 
        proceedings by the Department of the Interior.'';
            (4) by striking section 207 and inserting the following:

``SEC. 207. DESCENT AND DISTRIBUTION.

    ``(a) Testamentary Disposition.--
            ``(1) In general.--Interests in trust or restricted land 
        may be devised only to--
                    ``(A) the decedent's Indian spouse or any other 
                Indian person; or
                    ``(B) the Indian tribe with jurisdiction over the 
                land so devised.
            ``(2) Life estate.--Any devise of an interest in trust or 
        restricted land to a non-Indian shall create a life estate with 
        respect to such interest.
            ``(3) Remainder.--
                    ``(A) In general.--Except where the remainder from 
                the life estate referred to in paragraph (2) is devised 
                to an Indian, such remainder shall descend to the 
                decedent's Indian spouse or Indian heirs of the first 
                or second degree pursuant to the applicable law of 
                intestate succession.
                    ``(B) Descent of interests.--If a decedent 
                described in subparagraph (A) has no Indian heirs of 
                the first or second degree, the remainder interest 
                described in such subparagraph shall descend to any of 
                the decedent's collateral heirs of the first or second 
                degree, pursuant to the applicable laws of intestate 
                succession, if on the date of the decedent's death, 
                such heirs were a co-owner of an interest in the parcel 
                of trust or restricted land involved.
                    ``(C) Definition.--For purposes of this section, 
                the term `collateral heirs of the first or second 
                degree' means the brothers, sisters, aunts, uncles, 
                nieces, nephews, and first cousins, of a decedent.
            ``(4) Descent to tribe.--If the remainder interest 
        described in paragraph (3)(A) does not descend to an Indian 
        heir or heirs it shall descend to the Indian tribe that 
        exercises jurisdiction over the parcel of trust or restricted 
        lands involved, subject to paragraph (5).
            ``(5) Acquisition of interest by indian co-owners.--An 
        Indian co-owner of a parcel of trust or restricted land may 
        prevent the descent of an interest in Indian land to an Indian 
        tribe under paragraph (4) by paying into the decedent's estate 
        the fair market value of the interest in such land. If more 
        than 1 Indian co-owner offers to pay for such an interest, the 
        highest bidder shall obtain the interest. If payment is not 
        received before the close of the probate of the decedent's 
        estate, the interest shall descend to the tribe that exercises 
        jurisdiction over the parcel.
            ``(6) Special rule.--
                    ``(A) In general.--Notwithstanding paragraph (2), 
                an owner of trust or restricted land who does not have 
                an Indian spouse, Indian lineal descendant, an Indian 
                heir of the first or second degree, or an Indian 
                collateral heir of the first or second degree, may 
                devise his or her interests in such land to any of the 
                decedent's heirs of the first or second degree or 
                collateral heirs of the first or second degree.
                    ``(B) Acquisition of interest by tribe.--An Indian 
                tribe that exercises jurisdiction over an interest in 
                trust or restricted land described in subparagraph (A) 
                may acquire any interest devised to a non-Indian as 
                provided for in section 206(c).
    ``(b) Intestate Succession.--
            ``(1) In general.--An interest in trust or restricted land 
        shall pass by intestate succession only to a decedent's spouse 
        or heirs of the first or second degree, pursuant to the 
        applicable law of intestate succession.
            ``(2) Life estate.--Notwithstanding paragraph (1), with 
        respect to land described in such paragraph, a non-Indian 
        spouse or non-Indian heirs of the first or second degree shall 
        only receive a life estate in such land.
            ``(3) Descent of interests.--If a decedent described in 
        paragraph (1) has no Indian heirs of the first or second 
        degree, the remainder interest from the life estate referred to 
        in paragraph (2) shall descend to any of the decedent's 
        collateral Indian heirs of the first or second degree, pursuant 
        to the applicable laws of intestate succession, if on the date 
        of the decedent's death, such heirs were a co-owner of an 
        interest in the parcel of trust or restricted land involved.
            ``(4) Descent to tribe.--If the remainder interest 
        described in paragraph (3) does not descend to an Indian heir 
        or heirs it shall descend to the Indian tribe that exercises 
        jurisdiction over the parcel of trust or restricted lands 
        involved, subject to paragraph (5).
            ``(5) Acquisition of interest by indian co-owners.--An 
        Indian co-owner of a parcel of trust or restricted land may 
        prevent the descent of an interest in such land for which there 
        is no heir of the first or second degree by paying into the 
        decedent's estate the fair market value of the interest in such 
        land. If more than 1 Indian co-owner makes an offer to pay for 
        such an interest, the highest bidder shall obtain the interest. 
        If no such offer is made, the interest shall descend to the 
        Indian tribe that exercises jurisdiction over the parcel of 
        land involved.
    ``(c) Joint Tenancy; Right of Survivorship.--
            ``(1) Testate.--If a testator devises interests in the same 
        parcel of trust or restricted lands to more than 1 person, in 
        the absence of express language in the devise to the contrary, 
        the devise shall be presumed to create joint tenancy with the 
        right of survivorship in the land involved.
            ``(2) Intestate.--
                    ``(A) In general.--Any interest in trust or 
                restricted land that--
                            ``(i) passes by intestate succession to 
                        more than 1 person, including a remainder 
                        interest under subsection (a) or (b) of section 
                        207; and
                            ``(ii) that constitutes 5 percent or more 
                        of the undivided interest in a parcel of trust 
                        or restricted land;
                shall be held as tenancy in common.
                    ``(B) Limited interest.--Any interest in trust or 
                restricted land that--
                            ``(i) passes by intestate succession to 
                        more than 1 person, including a remainder 
                        interest under subsection (a) or (b) of section 
                        207; and
                            ``(ii) that constitutes less than 5 percent 
                        of the undivided interest in a parcel of trust 
                        or restricted land;
                shall be held by such heirs with the right of 
                survivorship.
            ``(3) Effective date.--
                    ``(A) In general.--This subsection (other than 
                subparagraph (B)) shall become effective on the later 
                of--
                            ``(i) the date referred to in subsection 
                        (g)(5); or
                            ``(ii) the date that is six months after 
                        the date on which the Secretary makes the 
                        certification required under subparagraph (B).
                    ``(B) Certification.--Upon a determination by the 
                Secretary that the Department of the Interior has the 
                capacity, including policies and procedures, to track 
                and manage interests in trust or restricted land held 
                with the right of survivorship, the Secretary shall 
                certify such determination and publish such 
                certification in the Federal Register.
    ``(d) Descent of Off-Reservation Lands.--
            ``(1) Indian reservation defined.--For purposes of this 
        subsection, the term `Indian reservation' includes lands 
        located within--
                    ``(A)(i) Oklahoma; and
                    ``(ii) the boundaries of an Indian tribe's former 
                reservation (as defined and determined by the 
                Secretary);
                    ``(B) the boundaries of any Indian tribe's current 
                or former reservation; or
                    ``(C) any area where the Secretary is required to 
                provide special assistance or consideration of a 
                tribe's acquisition of land or interests in land.
            ``(2) Descent.--Except in the State of California, upon the 
        death of an individual holding an interest in trust or 
        restricted lands that are located outside the boundaries of an 
        Indian reservation and that are not subject to the jurisdiction 
        of any Indian tribe, that interest shall descend either--
                    ``(A) by testate or intestate succession in trust 
                to an Indian; or
                    ``(B) in fee status to any other devises or heirs.
    ``(e) Approval of Agreements.--The official authorized to 
adjudicate the probate of trust or restricted lands shall have the 
authority to approve agreements between a decedent's heirs and devisees 
to consolidate interests in trust or restricted lands. The agreements 
referred to in the preceding sentence may include trust or restricted 
lands that are not a part of the decedent's estate that is the subject 
of the probate. The Secretary may promulgate regulations for the 
implementation of this subsection.
    ``(f) Estate Planning Assistance.--
            ``(1) In general.--The Secretary shall provide estate 
        planning assistance in accordance with this subsection, to the 
        extent amounts are appropriated for such purpose.
            ``(2) Requirements.--The estate planning assistance 
        provided under paragraph (1) shall be designed to--
                    ``(A) inform, advise, and assist Indian landowners 
                with respect to estate planning in order to facilitate 
                the transfer of trust or restricted lands to a devisee 
                or devisees selected by the landowners; and
                    ``(B) assist Indian landowners in accessing 
                information pursuant to section 217(e).
            ``(3) Contracts.--In carrying out this section, the 
        Secretary may enter into contracts with entities that have 
        expertise in Indian estate planning and tribal probate codes.
    ``(g) Notification to Indian Tribes and Owners of Trust or 
Restricted Lands.--
            ``(1) In general.--Not later than 180 days after the date 
        of enactment of the Indian Land Consolidation Act Amendments of 
        2000, the Secretary shall notify Indian tribes and owners of 
        trust or restricted lands of the amendments made by the Indian 
        Land Consolidation Act Amendments of 2000.
            ``(2) Specifications.--The notice required under paragraph 
        (1) shall be designed to inform Indian owners of trust or 
        restricted land of--
                    ``(A) the effect of this Act, with emphasis on the 
                effect of the provisions of this section, on the 
                testate disposition and intestate descent of their 
                interests in trust or restricted land; and
                    ``(B) estate planning options available to the 
                owners, including any opportunities for receiving 
                estate planning assistance or advice.
            ``(3) Requirements.--The Secretary shall provide the notice 
        required under paragraph (1)--
                    ``(A) by direct mail for those Indians with 
                interests in trust and restricted lands for which the 
                Secretary has an address for the interest holder;
                    ``(B) through the Federal Register;
                    ``(C) through local newspapers in areas with 
                significant Indian populations, reservation newspapers, 
                and newspapers that are directed at an Indian audience; 
                and
                    ``(D) through any other means determined 
                appropriate by the Secretary.
            ``(4) Certification.--After providing notice under this 
        subsection, the Secretary shall certify that the requirements 
        of this subsection have been met and shall publish notice of 
        such certification in the Federal Register.
            ``(5) Effective date.--The provisions of this section shall 
        not apply to the estate of an individual who dies prior to the 
        day that is 365 days after the Secretary makes the 
        certification required under paragraph (4).'';
            (5) in section 208, by striking ``section 206'' and 
        inserting ``subsections (a) and (b) of section 206''; and
            (6) by adding at the end the following:

``SEC. 213. PILOT PROGRAM FOR THE ACQUISITION OF FRACTIONAL INTERESTS.

    ``(a) Acquisition by Secretary.--
            ``(1) In general.--The Secretary may acquire, at the 
        discretion of the Secretary and with the consent of the owner, 
        and at fair market value, any fractional interest in trust or 
        restricted lands.
            ``(2) Authority of Secretary.--
                    ``(A) In general.--The Secretary shall have the 
                authority to acquire interests in trust or restricted 
                lands under this section during the 3-year period 
                beginning on the date of certification that is referred 
                to in section 207(g)(5).
                    ``(B) Required report.--Prior to expiration of the 
                authority provided for in subparagraph (A), the 
                Secretary shall submit the report required under 
                section 218 concerning whether the program to acquire 
                fractional interests should be extended or altered to 
                make resources available to Indian tribes and 
                individual Indian landowners.
            ``(3) Interests held in trust.--Subject to section 214, the 
        Secretary shall immediately hold interests acquired under this 
        Act in trust for the recognized tribal government that 
        exercises jurisdiction over the land involved.
    ``(b) Requirements.--In implementing subsection (a), the 
Secretary--
            ``(1) shall promote the policies provided for in section 
        102 of the Indian Land Consolidation Act Amendments of 2000;
            ``(2) may give priority to the acquisition of fractional 
        interests representing 2 percent or less of a parcel of trust 
        or restricted land, especially those interests that would have 
        escheated to a tribe but for the Supreme Court's decision in 
        Babbitt v. Youpee, (117 S Ct. 727 (1997));
            ``(3) to the extent practicable--
                    ``(A) shall consult with the tribal government that 
                exercises jurisdiction over the land involved in 
                determining which tracts to acquire on a reservation;
                    ``(B) shall coordinate the acquisition activities 
                with the acquisition program of the tribal government 
                that exercises jurisdiction over the land involved, 
                including a tribal land consolidation plan approved 
                pursuant to section 204; and
                    ``(C) may enter into agreements (such agreements 
                will not be subject to the provisions of the Indian 
                Self-Determination and Education Assistance Act of 
                1974) with the tribal government that exercises 
                jurisdiction over the land involved or a subordinate 
                entity of the tribal government to carry out some or 
                all of the Secretary's land acquisition program; and
            ``(4) shall minimize the administrative costs associated 
        with the land acquisition program.
    ``(c) Sale of Interest to Indian Landowners.--
            ``(1) Conveyance at request.--
                    ``(A) In general.--At the request of any Indian who 
                owns at least 5 percent of the undivided interest in a 
                parcel of trust or restricted land, the Secretary shall 
                convey an interest acquired under this section to the 
                Indian landowner upon payment by the Indian landowner 
                of the amount paid for the interest by the Secretary.
                    ``(B) Limitation.--With respect to a conveyance 
                under this subsection, the Secretary shall not approve 
                an application to terminate the trust status or remove 
                the restrictions of such an interest.
            ``(2) Multiple owners.--If more than one Indian owner 
        requests an interest under (1), the Secretary shall convey the 
        interest to the Indian owner who owns the largest percentage of 
        the undivided interest in the parcel of trust or restricted 
        land involved.
            ``(3) Limitation.--If an Indian tribe that has jurisdiction 
        over a parcel of trust or restricted land owns 10 percent or 
        more of the undivided interests in a parcel of such land, such 
        interest may only be acquired under paragraph (1) with the 
        consent of such Indian tribe.

``SEC. 214. ADMINISTRATION OF ACQUIRED FRACTIONAL INTERESTS, 
              DISPOSITION OF PROCEEDS.

    ``(a) In General.--Subject to the conditions described in 
subsection (b)(1), an Indian tribe receiving a fractional interest 
under section 213 may, as a tenant in common with the other owners of 
the trust or restricted lands, lease the interest, sell the resources, 
consent to the granting of rights-of-way, or engage in any other 
transaction affecting the trust or restricted land authorized by law.
    ``(b) Conditions.--
            ``(1) In general.--The conditions described in this 
        paragraph are as follows:
                    ``(A) Until the purchase price paid by the 
                Secretary for an interest referred to in subsection (a) 
                has been recovered, or until the Secretary makes any of 
                the findings under paragraph (2)(A), any lease, 
                resource sale contract, right-of-way, or other document 
                evidencing a transaction affecting the interest shall 
                contain a clause providing that all revenue derived 
                from the interest shall be paid to the Secretary.
                    ``(B) Subject to subparagraph (C), the Secretary 
                shall deposit any revenue derived under subparagraph 
                (A) into the Acquisition Fund created under section 
                216.
                    ``(C) The Secretary shall deposit any revenue that 
                is paid under subparagraph (A) that is in excess of the 
                purchase price of the fractional interest involved to 
                the credit of the Indian tribe that receives the 
                fractional interest under section 213 and the tribe 
                shall have access to such funds in the same manner as 
                other funds paid to the Secretary for the use of lands 
                held in trust for the tribe.
                    ``(D) Notwithstanding any other provision of law, 
                including section 16 of the Act of June 18, 1934 
                (commonly referred to as the `Indian Reorganization 
                Act') (48 Stat. 987, chapter 576; 25 U.S.C. 476), with 
                respect to any interest acquired by the Secretary under 
                section 213, the Secretary may approve a transaction 
                covered under this section on behalf of a tribe until--
                            ``(i) the Secretary makes any of the 
                        findings under paragraph (2)(A); or
                            ``(ii) an amount equal to the purchase 
                        price of that interest has been paid into the 
                        Acquisition Fund created under section 216.
            ``(2) Exception.--Paragraph (1)(A) shall not apply to any 
        revenue derived from an interest in a parcel of land acquired 
        by the Secretary under section 213 after--
                    ``(A) the Secretary makes a finding that--
                            ``(i) the costs of administering the 
                        interest will equal or exceed the projected 
                        revenues for the parcel involved;
                            ``(ii) in the discretion of the Secretary, 
                        it will take an unreasonable period of time for 
                        the parcel to generate revenue that equals the 
                        purchase price paid for the interest; or
                            ``(iii) a subsequent decrease in the value 
                        of land or commodities associated with the land 
                        make it likely that the interest will be unable 
                        to generate revenue that equals the purchase 
                        price paid for the interest in a reasonable 
                        time; or
                    ``(B) an amount equal to the purchase price of that 
                interest in land has been paid into the Acquisition 
                Fund created under section 216.
    ``(c) Tribe Not Treated as Party to Lease; No Effect on Tribal 
Sovereignty, Immunity.--
            ``(1) In general.--Paragraph (2) shall apply with respect 
        to any undivided interest in allotted land held by the 
        Secretary in trust for a tribe if a lease or agreement under 
        subsection (a) is otherwise applicable to such undivided 
        interest by reason of this section even though the Indian tribe 
        did not consent to the lease or agreement.
            ``(2) Application of lease.--The lease or agreement 
        described in paragraph (1) shall apply to the portion of the 
        undivided interest in allotted land described in such paragraph 
        (including entitlement of the Indian tribe to payment under the 
        lease or agreement), and the Indian tribe shall not be treated 
        as being a party to the lease or agreement. Nothing in this 
        section (or in the lease or agreement) shall be construed to 
        affect the sovereignty of the Indian tribe.

``SEC. 215. ESTABLISHING FAIR MARKET VALUE.

    ``For purposes of this Act, the Secretary may develop a system for 
establishing the fair market value of various types of lands and 
improvements. Such a system may include determinations of fair market 
value based on appropriate geographic units as determined by the 
Secretary. Such system may govern the amounts offered for the purchase 
of interests in trust or restricted lands under section 213.

``SEC. 216. ACQUISITION FUND.

    ``(a) In General.--The Secretary shall establish an Acquisition 
Fund to--
            ``(1) disburse appropriations authorized to accomplish the 
        purposes of section 213; and
            ``(2) collect all revenues received from the lease, permit, 
        or sale of resources from interests in trust or restricted 
        lands transferred to Indian tribes by the Secretary under 
        section 213 or paid by Indian landowners under section 213(c).
    ``(b) Deposits; Use.--
            ``(1) In general.--Subject to paragraph (2), all proceeds 
        from leases, permits, or resource sales derived from an 
        interest in trust or restricted lands described in subsection 
        (a)(2) shall--
                    ``(A) be deposited in the Acquisition Fund; and
                    ``(B) as specified in advance in appropriations 
                Acts, be available for the purpose of acquiring 
                additional fractional interests in trust or restricted 
                lands.
            ``(2) Maximum deposits of proceeds.--With respect to the 
        deposit of proceeds derived from an interest under paragraph 
        (1), the aggregate amount deposited under that paragraph shall 
        not exceed the purchase price of that interest under section 
        213.

``SEC. 217. TRUST AND RESTRICTED LAND TRANSACTIONS.

    ``(a) Policy.--It is the policy of the United States to encourage 
and assist the consolidation of land ownership through transactions--
            ``(1) involving individual Indians;
            ``(2) between Indians and the tribal government that 
        exercises jurisdiction over the land; or
            ``(3) between individuals who own an interest in trust and 
        restricted land who wish to convey that interest to an Indian 
        or the tribal government that exercises jurisdiction over the 
        parcel of land involved;
in a manner consistent with the policy of maintaining the trust status 
of allotted lands. Nothing in this section shall be construed to apply 
to or to authorize the sale of trust or restricted lands to a person 
who is not an Indian.
    ``(b) Sales, Exchanges and Gift Deeds Between Indians and Between 
Indians and Indian Tribes.--
            ``(1) In general.--
                    ``(A) Estimate of value.--Notwithstanding any other 
                provision of law and only after the Indian selling, 
                exchanging, or conveying by gift deed for no or nominal 
                consideration an interest in land, has been provided 
                with an estimate of the value of the interest of the 
                Indian pursuant to this section--
                            ``(i) the sale or exchange or conveyance of 
                        an interest in trust or restricted land may be 
                        made for an amount that is less than the fair 
                        market value of that interest; and
                            ``(ii) the approval of a transaction that 
                        is in compliance with this section shall not 
                        constitute a breach of trust by the Secretary.
                    ``(B) Waiver of requirement.--The requirement for 
                an estimate of value under subparagraph (A) may be 
                waived in writing by an Indian selling, exchanging, or 
                conveying by gift deed for no or nominal consideration 
                an interest in land with an Indian person who is the 
                owner's spouse, brother, sister, lineal ancestor of 
                Indian blood, lineal descendant, or collateral heir.
            ``(2) Limitation.--For a period of 5 years after the 
        Secretary approves a conveyance pursuant to this subsection, 
        the Secretary shall not approve an application to terminate the 
        trust status or remove the restrictions of such an interest.
    ``(c) Acquisition of Interest by Secretary.--An Indian, or the 
recognized tribal government of a reservation, in possession of an 
interest in trust or restricted lands, at least a portion of which is 
in trust or restricted status on the date of enactment of the Indian 
Land Consolidation Act Amendments of 2000 and located within a 
reservation, may request that the interest be taken into trust by the 
Secretary. Upon such a request, the Secretary shall forthwith take such 
interest into trust.
    ``(d) Status of Lands.--The sale, exchange, or conveyance by gift 
deed for no or nominal consideration of an interest in trust or 
restricted land under this section shall not affect the status of that 
land as trust or restricted land.
    ``(e) Land Ownership Information.--Notwithstanding any other 
provision of law, the names and mailing addresses of the Indian owners 
of trust or restricted lands, and information on the location of the 
parcel and the percentage of undivided interest owned by each 
individual, or of any interest in trust or restricted lands, shall, 
upon written request, be made available to--
            ``(1) other Indian owners of interests in trust or 
        restricted lands within the same reservation;
            ``(2) the tribe that exercises jurisdiction over the land 
        where the parcel is located or any person who is eligible for 
        membership in that tribe; and
            ``(3) prospective applicants for the leasing, use, or 
        consolidation of such trust or restricted land or the interest 
        in trust or restricted lands.
    ``(f) Notice to Indian Tribe.--After the expiration of the 
limitation period provided for in subsection (b)(2) and prior to 
considering an Indian application to terminate the trust status or to 
remove the restrictions on alienation from trust or restricted land 
sold, exchanged or otherwise conveyed under this section, the Indian 
tribe that exercises jurisdiction over the parcel of such land shall be 
notified of the application and given the opportunity to match the 
purchase price that has been offered for the trust or restricted land 
involved.

``SEC. 218. REPORTS TO CONGRESS.

    ``(a) In General.--Prior to expiration of the authority provided 
for in section 213(a)(2)(A), the Secretary, after consultation with 
Indian tribes and other interested parties, shall submit to the 
Committee on Indian Affairs and the Committee on Energy and Natural 
Resources of the Senate and the Committee on Resources of the House of 
Representatives a report that indicates, for the period covered by the 
report--
            ``(1) the number of fractional interests in trust or 
        restricted lands acquired; and
            ``(2) the impact of the resulting reduction in the number 
        of such fractional interests on the financial and realty 
        recordkeeping systems of the Bureau of Indian Affairs.
    ``(b) Report.--The reports described in subsection (a) and section 
213(a) shall contain findings as to whether the program under this Act 
to acquire fractional interests in trust or restricted lands should be 
extended and whether such program should be altered to make resources 
available to Indian tribes and individual Indian landowners.

``SEC. 219. APPROVAL OF LEASES, RIGHTS-OF-WAY, AND SALES OF NATURAL 
              RESOURCES.

    ``(a) Approval by the Secretary.--
            ``(1) In general.--Notwithstanding any other provision of 
        law, the Secretary may approve any lease or agreement that 
        affects individually owned allotted land or any other land held 
        in trust or restricted status by the Secretary on behalf of an 
        Indian, if--
                    ``(A) the owners of not less than the applicable 
                percentage (determined under subsection (b)) of the 
                undivided interest in the allotted land that is covered 
                by the lease or agreement consent in writing to the 
                lease or agreement; and
                    ``(B) the Secretary determines that approving the 
                lease or agreement is in the best interest of the 
                owners of the undivided interest in the allotted land.
            ``(2) Rule of construction.--Nothing in this section shall 
        be construed to apply to leases involving coal or uranium.
            ``(3) Definition.--In this section, the term `allotted 
        land' includes any land held in trust or restricted status by 
        the Secretary on behalf of one or more Indians.
    ``(b) Applicable Percentage.--
            ``(1) Percentage interest.--The applicable percentage 
        referred to in subsection (a)(1) shall be determined as 
        follows:
                    ``(A) If there are 5 or fewer owners of the 
                undivided interest in the allotted land, the applicable 
                percentage shall be 100 percent.
                    ``(B) If there are more than 5 such owners, but 
                fewer than 11 such owners, the applicable percentage 
                shall be 80 percent.
                    ``(C) If there are more than 10 such owners, but 
                fewer than 20 such owners, the applicable percentage 
                shall be 60 percent.
                    ``(D) If there are 20 or more such owners, the 
                applicable percentage shall be a majority of the 
                interests in the allotted land.
            ``(2) Determination of owners.--
                    ``(A) In general.--For purposes of this subsection, 
                in determining the number of owners of, and their 
                interests in, the undivided interest in the allotted 
                land with respect to a lease or agreement, the 
                Secretary shall make such determination based on the 
                records of the Department of the Interior that identify 
                the owners of such lands and their interests and the 
                number of owners of such land on the date on which the 
                lease or agreement involved is submitted to the 
                Secretary under this section.
                    ``(B) Rule of construction.--Nothing in 
                subparagraph (A) shall be construed to authorize the 
                Secretary to treat an Indian tribe as the owner of an 
                interest in allotted land that did not escheat to the 
                tribe pursuant to section 207 as a result of the 
                Supreme Court's decision in Babbitt v. Youpee, (117 S 
                Ct. 727 (1997)).
    ``(c) Authority of Secretary to Sign Lease or Agreement on Behalf 
of Certain Owners.--The Secretary may give written consent to a lease 
or agreement under subsection (a)--
            ``(1) on behalf of the individual Indian owner if the owner 
        is deceased and the heirs to, or devisees of, the interest of 
        the deceased owner have not been determined; or
            ``(2) on behalf of any heir or devisee referred to in 
        paragraph (1) if the heir or devisee has been determined but 
        cannot be located
    ``(d) Effect of Approval.--
            ``(1) Application to all parties.--
                    ``(A) In general.--Subject to paragraph (2), a 
                lease or agreement approved by the Secretary under 
                subsection (a) shall be binding on the parties 
                described in subparagraph (B), to the same extent as if 
                all of the owners of the undivided interest in allotted 
                land covered under the lease or agreement consented to 
                the lease or agreement.
                    ``(B) Description of parties.--The parties referred 
                to in subparagraph (A) are--
                            ``(i) the owners of the undivided interest 
                        in the allotted land covered under the lease or 
                        agreement referred to in such subparagraph; and
                            ``(ii) all other parties to the lease or 
                        agreement.
            ``(2) Tribe not treated as party to lease; no effect on 
        tribal sovereignty, immunity.--
                    ``(A) In general.--Subparagraph (B) shall apply 
                with respect to any undivided interest in allotted land 
                held by the Secretary in trust for a tribe if a lease 
                or agreement under subsection (a) is otherwise 
                applicable to such undivided interest by reason of this 
                section even though the Indian tribe did not consent to 
                the lease or agreement.
                    ``(B) Application of lease.--The lease or agreement 
                described in subparagraph (A) shall apply to the 
                portion of the undivided interest in allotted land 
                described in such paragraph (including entitlement of 
                the Indian tribe to payment under the lease or 
                agreement), and the Indian tribe shall not be treated 
                as being a party to the lease or agreement. Nothing in 
                this section (or in the lease or agreement) shall be 
                construed to affect the sovereignty of the Indian 
                tribe.
    ``(e) Distribution of Proceeds.--
            ``(1) In general.--The proceeds derived from a lease or 
        agreement that is approved by the Secretary under subsection 
        (a) shall be distributed to all owners of undivided interest in 
        the allotted land covered under the lease or agreement.
            ``(2) Determination of amounts distributed.--The amount of 
        the proceeds under paragraph (1) that are distributed to each 
        owner under that paragraph shall be determined in accordance 
        with the portion of the undivided interest in the allotted land 
        covered under the lease or agreement that is owned by that 
        owner.
    ``(f) Rule of Construction.--Nothing in this section shall be 
construed to amend or modify the provisions of Public Law 105-188 (25 
U.S.C. 396 note), the American Indian Agricultural Resources Management 
Act (25 U.S.C. 3701 et seq.), title II of the Indian Land Consolidation 
Act Amendments of 2000, or any other Act that provides specific 
standards for the percentage of ownership interest that must approve a 
lease or agreement on a specified reservation.

``SEC. 220. APPLICATION TO ALASKA.

    ``(a) Findings.--Congress find that--
            ``(1) numerous academic and governmental organizations have 
        studied the nature and extent of fractionated ownership of 
        Indian land outside of Alaska and have proposed solutions to 
        this problem; and
            ``(2) despite these studies, there has not been a 
        comparable effort to analyze the problem, if any, of 
        fractionated ownership in Alaska.
    ``(b) Application of Act to Alaska.--Except as provided in this 
section, this Act shall not apply to land located within Alaska.
    ``(c) Rule of Construction.--Nothing in this section shall be 
construed to constitute a ratification of any determination by any 
agency, instrumentality, or court of the United States that may support 
the assertion of tribal jurisdiction over allotment lands or interests 
in such land in Alaska.''.

SEC. 104. JUDICIAL REVIEW.

    Notwithstanding section 207(g)(5) of the Indian Land Consolidation 
Act (25 U.S.C. 2206(f)(5)), after the Secretary of Interior provides 
the certification required under section 207(g)(4) of such Act, the 
owner of an interest in trust or restricted land may bring an 
administrative action to challenge the application of such section 207 
to the devise or descent of his or her interest or interests in trust 
or restricted lands, and may seek judicial review of the final decision 
of the Secretary of Interior with respect to such challenge.

SEC. 105. AUTHORIZATION OF APPROPRIATIONS.

    There are authorized to be appropriated not to exceed $8,000,000 
for fiscal year 2001 and each subsequent fiscal year to carry out the 
provisions of this title (and the amendments made by this title) that 
are not otherwise funded under the authority provided for in any other 
provision of Federal law.

SEC. 106. CONFORMING AMENDMENTS.

    (a) Patents Held in Trust.--The Act of February 8, 1887 (24 Stat. 
388) is amended--
            (1) by repealing sections 1, 2, and 3 (25 U.S.C. 331, 332, 
        and 333); and
            (2) in the second proviso of section 5 (25 U.S.C. 348)--
                    (A) by striking ``and partition''; and
                    (B) by striking ``except'' and inserting ``except 
                as provided by the Indian Land Consolidation Act or a 
                tribal probate code approved under such Act and 
                except''.
    (b) Ascertainment of Heirs and Disposal of Allotments.--The Act of 
June 25, 1910 (36 Stat. 855) is amended--
            (1) in the first sentence of section 1 (25 U.S.C. 372), by 
        striking ``under'' and inserting ``under the Indian Land 
        Consolidation Act or a tribal probate code approved under such 
        Act and pursuant to''; and
            (2) in the first sentence of section 2 (25 U.S.C. 373), by 
        striking ``with regulations'' and inserting ``with the Indian 
        Land Consolidation Act or a tribal probate code approved under 
        such Act and regulations''.
    (c) Transfer of Lands.--Section 4 of the Act of June 18, 1934 (25 
U.S.C. 464) is amended by striking ``member or:'' and inserting 
``member or, except as provided by the Indian Land Consolidation 
Act,''.

            TITLE II--LEASES OF NAVAJO INDIAN ALLOTTED LANDS

SEC. 201. LEASES OF NAVAJO INDIAN ALLOTTED LANDS.

    (a) Definitions.--In this section:
            (1) Indian tribe.--The term ``Indian tribe'' has the 
        meaning given the term in section 4(e) of the Indian Self-
        Determination and Education Assistance Act (25 U.S.C. 450b(e)).
            (2) Individually owned navajo indian allotted land.--The 
        term ``individually owned Navajo Indian allotted land'' means 
        Navajo Indian allotted land that is owned in whole or in part 
        by 1 or more individuals.
            (3) Navajo indian.--The term ``Navajo Indian'' means a 
        member of the Navajo Nation.
            (4) Navajo indian allotted land.--The term ``Navajo Indian 
        allotted land'' means a single parcel of land that--
                    (A) is located within the jurisdiction of the 
                Navajo Nation; and
                    (B)(i) is held in trust or restricted status by the 
                United States for the benefit of Navajo Indians or 
                members of another Indian tribe; and
                    (ii) was--
                            (I) allotted to a Navajo Indian; or
                            (II) taken into trust or restricted status 
                        by the United States for a Navajo Indian.
            (5) Owner.--The term ``owner'' means, in the case of any 
        interest in land described in paragraph (4)(B)(i), the 
        beneficial owner of the interest.
            (6) Secretary.--The term ``Secretary'' means the Secretary 
        of the Interior.
    (b) Approval by the Secretary.--
            (1) In general.--The Secretary may approve an oil or gas 
        lease or agreement that affects individually owned Navajo 
        Indian allotted land, if--
                    (A) the owners of not less than the applicable 
                percentage (determined under paragraph (2)) of the 
                undivided interest in the Navajo Indian allotted land 
                that is covered by the oil or gas lease or agreement 
                consent in writing to the lease or agreement; and
                    (B) the Secretary determines that approving the 
                lease or agreement is in the best interest of the 
                owners of the undivided interest in the Navajo Indian 
                allotted land.
            (2) Percentage interest.--The applicable percentage 
        referred to in paragraph (1)(A) shall be determined as follows:
                    (A) If there are 10 or fewer owners of the 
                undivided interest in the Navajo Indian allotted land, 
                the applicable percentage shall be 100 percent.
                    (B) If there are more than 10 such owners, but 
                fewer than 51 such owners, the applicable percentage 
                shall be 80 percent.
                    (C) If there are 51 or more such owners, the 
                applicable percentage shall be 60 percent.
            (3) Authority of secretary to sign lease or agreement on 
        behalf of certain owners.--The Secretary may give written 
        consent to an oil or gas lease or agreement under paragraph (1) 
        on behalf of an individual Indian owner if--
                    (A) the owner is deceased and the heirs to, or 
                devisees of, the interest of the deceased owner have 
                not been determined; or
                    (B) the heirs or devisees referred to in 
                subparagraph (A) have been determined, but 1 or more of 
                the heirs or devisees cannot be located.
            (4) Effect of approval.--
                    (A) Application to all parties.--
                            (i) In general.--Subject to subparagraph 
                        (B), an oil or gas lease or agreement approved 
                        by the Secretary under paragraph (1) shall be 
                        binding on the parties described in clause 
                        (ii), to the same extent as if all of the 
                        owners of the undivided interest in Navajo 
                        Indian allotted land covered under the lease or 
                        agreement consented to the lease or agreement.
                            (ii) Description of parties.--The parties 
                        referred to in clause (i) are--
                                    (I) the owners of the undivided 
                                interest in the Navajo Indian allotted 
                                land covered under the lease or 
                                agreement referred to in clause (i); 
                                and
                                    (II) all other parties to the lease 
                                or agreement.
                    (B) Effect on indian tribe.--If--
                            (i) an Indian tribe is the owner of a 
                        portion of an undivided interest in Navajo 
                        Indian allotted land; and
                            (ii) an oil or gas lease or agreement under 
                        paragraph (1) is otherwise applicable to such 
                        portion by reason of this subsection even 
                        though the Indian tribe did not consent to the 
                        lease or agreement,
                then the lease or agreement shall apply to such portion 
                of the undivided interest (including entitlement of the 
                Indian tribe to payment under the lease or agreement), 
                but the Indian tribe shall not be treated as a party to 
                the lease or agreement and nothing in this subsection 
                (or in the lease or agreement) shall be construed to 
                affect the sovereignty of the Indian tribe.
            (5) Distribution of proceeds.--
                    (A) In general.--The proceeds derived from an oil 
                or gas lease or agreement that is approved by the 
                Secretary under paragraph (1) shall be distributed to 
                all owners of the undivided interest in the Navajo 
                Indian allotted land covered under the lease or 
                agreement.
                    (B) Determination of amounts distributed.--The 
                amount of the proceeds under subparagraph (A) 
                distributed to each owner under that subparagraph shall 
                be determined in accordance with the portion of the 
                undivided interest in the Navajo Indian allotted land 
                covered under the lease or agreement that is owned by 
                that owner.

            Passed the Senate July 26, 2000.

            Attest:

                                                             Secretary.
106th CONGRESS

  2d Session

                                S. 1586

_______________________________________________________________________

                                 AN ACT

  To reduce the fractionated ownership of Indian lands, and for other 
                               purposes.

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