[Congressional Bills 106th Congress]
[From the U.S. Government Publishing Office]
[S. 1586 Introduced in Senate (IS)]
106th CONGRESS
1st Session
S. 1586
To reduce the fractionated ownership of Indian lands, and for other
purposes.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
September 15, 1999
Mr. Campbell introduced the following bill; which was read twice and
referred to the Committee on Indian Affairs
_______________________________________________________________________
A BILL
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 1999''.
SEC. 2. 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) many trust allotments were taken out of trust status
and sold by their Indian owners;
(3) the trust periods for trust allotments have been
extended indefinitely;
(4) 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 interests, many of
which represent 2 percent or less of the total interests;
(5) Congress has authorized the acquisition of lands in
trust for individual Indians, and many of those lands have also
become fractionated by subsequent inheritance;
(6) the acquisitions referred to in paragraph (5) continue
to be made;
(7) the fractional interests described in this section
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 inordinate;
(8) substantial numbers of fractional interests of 2
percent or less of a total interest in trust or restricted
lands have escheated to Indian tribes under section 207 of the
Indian Land Consolidation Act (25 U.S.C. 2206), which was
enacted in 1983;
(9) in Babbit v. Youpee (117 S Ct. 727 (1997)), the United
States Supreme Court found that the application of section 207
of the Indian Land Consolidation Act to the facts presented in
that case to be unconstitutional;
(10) in the absence of remedial legislation, the number of
the fractional interests will continue to grow; and
(11) 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.
SEC. 3. 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; and
(4) to promote tribal self-sufficiency and self-
determination.
SEC. 4. AMENDMENTS TO THE INDIAN LAND CONSOLIDATION ACT.
(a) In General.--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 an Indian
tribe or is eligible to become a member of an Indian tribe at
the time of the distribution of the assets of a decedent's
estate;'';
(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) by amending section 203 to read as follows:
``SEC. 203. OTHER APPLICABLE PROVISIONS.
``(a) In General.--Subject to subsection (b), sections 5 and 7 of
the Act of June 18, 1934 (commonly known as the `Indian Reorganization
Act') (48 Stat. 985 et seq., chapter 576; 25 U.S.C. 465 and 467) shall
apply to all Indian tribes, notwithstanding section 18 of that Act (25
U.S.C. 478).
``(b) Rule of Construction.--Nothing in this section is intended to
supersede any other provision of Federal law which authorizes,
prohibits, or restricts the acquisition of land or the creation of
reservations for Indians with respect to any specific Indian tribe,
reservation, or State.'';
(3) 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 ``per centum of the
undivided interest in such tract'' and
inserting ``percent of the individual interests
in such tract. 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 conditions 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.'';
(4) by striking section 206 and inserting the following:
``SEC. 206. DESCENT AND DISTRIBUTION OF TRUST OR RESTRICTED LANDS;
TRIBAL ORDINANCE BARRING NONMEMBERS OF AN INDIAN TRIBE
FROM INHERITANCE BY DEVISE OR DESCENT.
``(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) Codes.--A tribal probate code referred to in
paragraph (1) may provide that, notwithstanding section 207,
only members of the Indian tribe shall be entitled to receive
by devise or descent any interest in trust or restricted lands
within that Indian tribe's reservation or otherwise subject to
that Indian tribe's jurisdiction.
``(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.
``(C) Consistency of tribal probate code with this
act.--The Secretary may not approve a tribal probate
code under this paragraph unless the Secretary
determines that the tribal probate code is consistent
with this Act.
``(D) Explanation.--If the Secretary disapproves a
tribal probate code under this paragraph, the Secretary
shall include in a notice of the 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.
``(3) Effective dates.--A tribal probate code or amendment
approved under paragraph (2) shall become effective on the
later of--
``(A) the date specified in section 207(e)(1); 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 descendant 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) 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 shall promulgate
regulations concerning the use of proposed findings of fact and
conclusions of law, as rendered by a tribal justice system, in
the adjudication of probate proceedings by the Department of
the Interior.
``(d) Life Estates for Non-Indian Spouses and Children Who Would
Otherwise Be Precluded From Inheriting By Reason of the Operation of a
Tribal Probate Code.--
``(1) In general.--Paragraph (2) shall apply with respect
to a non-Indian spouse or child of an Indian decedent, if that
decedent is subject to a tribal probate code that has been
approved by the Secretary (or deemed approved) under subsection
(b) and--
``(A) dies intestate; and
``(B) has devised an interest in trust or
restricted lands to that non-Indian spouse or child,
which the spouse or child is otherwise prohibited from
inheriting by reason of that tribal probate code.
``(2) Life estates.--
``(A) In general.--A surviving non-Indian spouse or
child of the decedent described in paragraph (1) may
elect to receive a life estate in the portion of the
trust or restricted lands to which that individual
would have been entitled under the tribal probate code,
if that individual were an Indian.
``(B) Remainder of interest.--If a non-Indian
spouse or child elects to receive a life estate
described in subparagraph (A), the remainder of the
interest of the Indian decedent shall vest in the
Indians who would otherwise have been heirs, but for
that spouse's or child's election to receive a life
estate.'';
(5) by striking section 207 and inserting the following:
``SEC. 207. DESCENT AND DISTRIBUTION; ESCHEAT OF FRACTIONAL INTERESTS.
``(a) Descent and Distribution.--Except as provided in this
section, interests in trust or restricted lands may descend by testate
or intestate succession only to--
``(1) the decedent's heirs-at-law or relatives within the
first and second degree;
``(2) a person who owns a preexisting interest in the same
parcel of land conveyed by the decedent;
``(3) members of the Indian tribe with jurisdiction over
the lands devised; or
``(4) the Indian tribe with jurisdiction over the lands
devised.
``(b) Special Rule.--A decedent that does not have a relative who
meets the description under subsection (a)(1) or a relative who is a
member described in subsection (a)(3) may devise that decedent's estate
or any asset of that estate to any relative.
``(c) Devise of Interests in the Same Parcel to More Than 1
Person.--
``(1) Joint tenancy with right of survivorship.--If a
testator devises interests in the same parcel of trust or
restricted land to more than 1 person, in the absence of
express language in the devise to the contrary, the devise
shall be presumed to create a joint tenancy with right of
survivorship.
``(2) Estates passing by intestate succession.--With
respect to an estate passing by intestate succession, only a
spouse and heirs of the first or second degree may inherit an
interest in trust or restricted lands.
``(3) Escheat.--If no individual is eligible to receive an
interest in trust or restricted lands, the interest shall
escheat to the Indian tribe having jurisdiction over the trust
or restricted lands, subject to any life estate that may be
created under section 206(d).
``(4) Notification to indian tribes.--Not later than 180
days after the date of enactment of the Indian Land
Consolidation Act Amendments of 1999, the Secretary shall, to
the extent that the Secretary considers to be practicable,
notify Indian tribes and individual landowners of the
amendments made by the Indian Land Consolidation Act Amendments
of 1999. The notice shall list estate planning options
available to the owners.
``(5) Descent of off-reservation lands.--
``(A) Indian reservation defined.--For purposes of
this paragraph, the term `Indian reservation' includes
lands located within--
``(i) Oklahoma; and
``(ii) the boundaries of an Indian tribe's
former reservation (as defined and determined
by the Secretary).
``(B) Descent.--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.
``(6) Notice to indians.--
``(A) In general.--The Secretary shall provide
notice to each Indian that has an interest in trust or
restricted lands of that interest. The notice shall
specify that if such interest is in 2 percent or less
of the total acreage in a parcel of trust or restricted
lands, that interest may escheat to the Indian tribe of
that Indian.
``(B) Limitation.--Subsections (a) and (d) shall
not apply to the probate of any interest in trust or
restricted lands of an Indian decedent if the Secretary
failed to provide notice under subparagraph (A) to that
individual before the date that is 180 days before the
death of the decedent.
``(d) Escheatable Fractional Interests.--
``(1) In general.--Notwithstanding subsection (a), no
undivided interest which represents 2 percent or less of the
total acreage in a parcel of trust or restricted land shall
pass by intestacy.
``(2) Escheat.--An undivided interest referred to in
paragraph (1) shall escheat--
``(A) to the Indian tribe on whose reservation the
interest is located; or
``(B) if that interest is located outside of a
reservation, to the recognized tribal government
possessing jurisdiction over the land.''; and
(6) by adding at the end the following:
``SEC. 213. ACQUISITION OF FRACTIONAL INTERESTS.
``(a) In General.--The Secretary may acquire, in the discretion of
the Secretary, with the consent of its owner and at fair market value,
any fractional interest in trust or restricted lands. The Secretary
shall give priority to the acquisition of fractional interests
representing 2 percent or less of a parcel of trust or restricted land.
The Secretary shall hold in trust for the Indian tribe that has
jurisdiction over the fractional interest in trust or restricted lands
the title of all interests acquired under this section.
``(b) Program of Acquisition.--Any Indian tribe that has in effect
a consolidation plan that has been approved by the Secretary under
section 204 may request the Secretary to enter into an agreement with
the Indian tribe to implement a program to acquire fractional
interests, as authorized by subsection (a) using funds appropriated
pursuant to this Act.
``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 207 or 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 the interest referred to in subsection
(a) has been recovered, any lease, resource sale
contract, right-of-way, or other transaction affecting
the document providing for the disposition of the
interest under that subsection shall contain a clause
providing that all revenue derived from the interest
shall be paid to the Secretary.
``(B) The Secretary shall deposit any revenue
derived from interest paid under subparagraph (A) in
the Acquisition Fund created under section 216.
``(C) The Secretary shall deposit any revenue
derived from the interest that is paid under
subparagraph (A) that is in an amount 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.
``(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),
during such time as an Indian tribe is a tenant in
common with individual Indian landowners on land
acquired under section 207 or 213, the Indian tribe may
not refuse to enter into any transaction covered under
this section if landowners owning a majority of the
undivided interests in the parcel consent to the
transaction.
``(E) If the Indian tribe does not consent to enter
into a transaction referred to in subparagraph (D), the
Secretary may consent on behalf of the Indian tribe.
``(F) For leases of allotted land that are
authorized to be granted by the Secretary, the Indian
tribe shall be treated as if the Indian tribe were an
individual Indian landowner.
``(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 after an amount equal to the
purchase price of that interest in land has been paid into the
Acquisition Fund created under section 216.
``SEC. 215. ESTABLISHING FAIR MARKET VALUE.
``For the purposes of this Act, the Secretary may develop a
reservation-wide system (or system for another appropriate geographical
unit) for establishing the fair market value of various types of lands
and improvements. That 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.
``(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. DETERMINATION OF RESERVATION BOUNDARIES AND TRIBAL
JURISDICTION.
``(a) Determination of Jurisdiction.--
``(1) In general.--The Secretary shall determine whether a
parcel of land is--
``(A) within an Indian reservation; or
``(B) otherwise subject to an Indian tribe's
jurisdiction.
``(2) Review.--The United States District Court for the
district where land that is subject to a determination under
paragraph (1) is located may review the determination under
chapter 7 of title 5, United States Code.
``(b) Rule of Construction.--Nothing in this Act may be construed
to affect section 2409a of title 28, United States Code.
``SEC. 218. 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
involving individual Indians in a manner consistent with the policy of
maintaining the trust status of allotted lands.
``(b) Valuation of Sales and Exchanges.--Notwithstanding any other
provision of law--
``(1) the sale 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
``(2) the exchange of an interest in trust or restricted
lands may be made for an interest of a value less than the fair
market value of the interest in those lands.
``(c) Status of Lands.--The sale or exchange of an interest in
trust or restricted land under this section shall not affect the status
of that land as trust or restricted land.
``(d) Gift Deeds.--
``(1) In general.--An individual owner of an interest in
trust or restricted land may convey that interest by gift deed
to--
``(A) an individual Indian who is a member of the
Indian tribe that exercises jurisdiction over the land;
``(B) the Indian tribe that exercises jurisdiction
over that land; or
``(C) any other person whom the Secretary
determines may hold the land in trust or restricted
status.
``(2) Special rule.--With respect to any gift deed conveyed
under this section, the Secretary shall not require an
appraisal.
``SEC. 219. REPORTS TO CONGRESS.
``(a) In General.--Not later than the date that is 3 years after
the date of enactment of the Indian Land Consolidation Act Amendments
of 1999, and annually thereafter, the Secretary shall submit to
Congress 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) Recommendations for Legislation.--The Secretary, after
consultation with the Indian tribes, shall make recommendations for
such legislation as is necessary to make further reductions in the
fractional interests referred to in subsection (a).
``SEC. 220. APPROVAL OF LEASES, RIGHTS-OF-WAY, AND SALES OF NATURAL
RESOURCES.
``(a) In General.--The Secretary may approve any lease, right-of-
way, sale of natural resources, or any other transaction affecting
individually owned trust or restricted lands that requires approval by
the Secretary, if--
``(1) the owners of a majority interest in the trust or
restricted lands consent to the transaction; and
``(2) the Secretary determines that approval of the
transaction is in the best interest of the Indian owners.
``(b) Binding Transactions.--Upon the approval of a transaction
referred to in subsection (a), the transaction shall be binding upon
the owners of the minority interests in the trust or restricted land,
and all other parties to the transaction to the same extent as if all
of the Indian owners had consented to the transaction.
``SEC. 221. REAL ESTATE TRANSACTIONS INVOLVING NON-TRUST LANDS.
``(a) In General.--Notwithstanding any other provision of law, any
Indian tribe may on the same basis as any other person, buy, sell,
mortgage, or otherwise acquire or dispose of lands or interests in land
described in subsection (b), without an Act of Congress or the approval
of the Secretary.
``(b) Lands.--Lands described in this subsection are lands that
are--
``(1) acquired after the date of enactment of the Indian
Land Consolidation Act Amendments of 1999; and
``(2) not held in trust or subject to a preexisting Federal
restriction on alienation imposed by the United States.
``(c) No Liability on Part of the United States.--The disposition
of lands described in subsection (b) shall create no liability on the
part of the United States.''.
(b) Effective Date; Applicability.--
(1) Effective date of amendments to section 207 of the
indian land consolidation act.--Except with respect to the
notification under section 207(c) (4) and (6) of the Indian
Land Consolidation Act (25 U.S.C. 2206(c) (4) and (6)), the
amendments made by subsection (a) to section 207 of the Indian
Land Consolidation Act (25 U.S.C. 2206) shall become effective
on the date that is 2 years after the date of enactment of this
Act.
(2) Applicability.--The amendments made by subsection (a)
to section 207 of the Indian Land Consolidation Act shall apply
only to the estates of decedents that die on or after the date
specified in paragraph (1).
SEC. 5. AUTHORIZATION OF APPROPRIATIONS.
There are authorized to be appropriated such sums as are necessary
to carry out this Act.
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