[Congressional Bills 106th Congress]
[From the U.S. Government Publishing Office]
[S. 1586 Reported in Senate (RS)]
Calendar No. 714
106th CONGRESS
2d Session
S. 1586
[Report No. 106-361]
To reduce the fractionated ownership of Indian lands, and for other
purposes.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
September 15, 1999
Mr. Campbell (for himself and Mr. Bingaman) introduced the following
bill; which was read twice and referred to the Committee on Indian
Affairs
July 26, 2000
Reported by Mr. Campbell, with an amendment
[Strike out all after the enacting clause and insert the part printed
in italic]
_______________________________________________________________________
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,
<DELETED>SECTION 1. SHORT TITLE.</DELETED>
<DELETED> This Act may be cited as the ``Indian Land Consolidation
Act Amendments of 1999''.</DELETED>
<DELETED>SEC. 2. FINDINGS.</DELETED>
<DELETED> Congress finds that--</DELETED>
<DELETED> (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;</DELETED>
<DELETED> (2) many trust allotments were taken out of trust
status and sold by their Indian owners;</DELETED>
<DELETED> (3) the trust periods for trust allotments have
been extended indefinitely;</DELETED>
<DELETED> (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;</DELETED>
<DELETED> (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;</DELETED>
<DELETED> (6) the acquisitions referred to in paragraph (5)
continue to be made;</DELETED>
<DELETED> (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;</DELETED>
<DELETED> (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;</DELETED>
<DELETED> (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;</DELETED>
<DELETED> (10) in the absence of remedial legislation, the
number of the fractional interests will continue to grow;
and</DELETED>
<DELETED> (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.</DELETED>
<DELETED>SEC. 3. DECLARATION OF POLICY.</DELETED>
<DELETED> It is the policy of the United States--</DELETED>
<DELETED> (1) to prevent the further fractionation of trust
allotments made to Indians;</DELETED>
<DELETED> (2) to consolidate fractional interests and
ownership of those interests into usable parcels;</DELETED>
<DELETED> (3) to consolidate fractional interests in a
manner that enhances tribal sovereignty; and</DELETED>
<DELETED> (4) to promote tribal self-sufficiency and self-
determination.</DELETED>
<DELETED>SEC. 4. AMENDMENTS TO THE INDIAN LAND CONSOLIDATION
ACT.</DELETED>
<DELETED> (a) In General.--The Indian Land Consolidation Act (25
U.S.C. 2201 et seq.) is amended--</DELETED>
<DELETED> (1) in section 202--</DELETED>
<DELETED> (A) in paragraph (1), by striking ``(1)
`tribe''' and inserting ``(1) `Indian tribe' or
`tribe''';</DELETED>
<DELETED> (B) by striking paragraph (2) and
inserting the following:</DELETED>
<DELETED> ``(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;'';</DELETED>
<DELETED> (C) by striking ``and'' at the end of
paragraph (3);</DELETED>
<DELETED> (D) by striking the period at the end of
paragraph (4) and inserting ``; and''; and</DELETED>
<DELETED> (E) by adding at the end the
following:</DELETED>
<DELETED> ``(5) `heirs of the first or second degree' means
parents, children, grandchildren, grandparents, brothers and
sisters of a decedent.'';</DELETED>
<DELETED> (2) by amending section 203 to read as
follows:</DELETED>
<DELETED>``SEC. 203. OTHER APPLICABLE PROVISIONS.</DELETED>
<DELETED> ``(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).</DELETED>
<DELETED> ``(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.'';</DELETED>
<DELETED> (3) in section 205--</DELETED>
<DELETED> (A) in the matter preceding paragraph
(1)--</DELETED>
<DELETED> (i) by striking ``Any Indian'' and
inserting ``(a) In General.--Subject to
subsection (b), any Indian'';</DELETED>
<DELETED> (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.'';</DELETED>
<DELETED> (iii) by striking ``: Provided,
That--''; and inserting the
following:</DELETED>
<DELETED> ``(b) Conditions Applicable to Purchase.--Subsection (a)
applies on the conditions that--'';</DELETED>
<DELETED> (B) in paragraph (2)--</DELETED>
<DELETED> (i) by striking ``If,'' and
inserting ``if''; and</DELETED>
<DELETED> (ii) by adding ``and'' at the end;
and</DELETED>
<DELETED> (C) by striking paragraph (3) and
inserting the following:</DELETED>
<DELETED> ``(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.'';</DELETED>
<DELETED> (4) by striking section 206 and inserting the
following:</DELETED>
<DELETED>``SEC. 206. DESCENT AND DISTRIBUTION OF TRUST OR RESTRICTED
LANDS; TRIBAL ORDINANCE BARRING NONMEMBERS OF AN INDIAN
TRIBE FROM INHERITANCE BY DEVISE OR DESCENT.</DELETED>
<DELETED> ``(a) Tribal Probate Codes.--</DELETED>
<DELETED> ``(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--</DELETED>
<DELETED> ``(A) located within that Indian tribe's
reservation; or</DELETED>
<DELETED> ``(B) otherwise subject to the
jurisdiction of that Indian tribe.</DELETED>
<DELETED> ``(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.</DELETED>
<DELETED> ``(b) Secretarial Approval.--</DELETED>
<DELETED> ``(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.</DELETED>
<DELETED> ``(2) Review and approval.--</DELETED>
<DELETED> ``(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.</DELETED>
<DELETED> ``(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.</DELETED>
<DELETED> ``(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.</DELETED>
<DELETED> ``(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.</DELETED>
<DELETED> ``(E) Amendments.--</DELETED>
<DELETED> ``(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.</DELETED>
<DELETED> ``(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.</DELETED>
<DELETED> ``(3) Effective dates.--A tribal probate code or
amendment approved under paragraph (2) shall become effective
on the later of--</DELETED>
<DELETED> ``(A) the date specified in section
207(e)(1); or</DELETED>
<DELETED> ``(B) 180 days after the date of
approval.</DELETED>
<DELETED> ``(4) Limitations.--</DELETED>
<DELETED> ``(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.</DELETED>
<DELETED> ``(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.</DELETED>
<DELETED> ``(5) Repeals.--The repeal of a tribal probate
code shall--</DELETED>
<DELETED> ``(A) not become effective earlier than
the date that is 180 days after the Secretary receives
notice of the repeal; and</DELETED>
<DELETED> ``(B) apply only to the estate of a
decedent who dies on or after the effective date of the
repeal.</DELETED>
<DELETED> ``(c) Use of Proposed Findings by Tribal Justice
Systems.--</DELETED>
<DELETED> ``(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).</DELETED>
<DELETED> ``(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.</DELETED>
<DELETED> ``(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.--</DELETED>
<DELETED> ``(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--</DELETED>
<DELETED> ``(A) dies intestate; and</DELETED>
<DELETED> ``(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.</DELETED>
<DELETED> ``(2) Life estates.--</DELETED>
<DELETED> ``(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.</DELETED>
<DELETED> ``(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.'';</DELETED>
<DELETED> (5) by striking section 207 and inserting the
following:</DELETED>
<DELETED>``SEC. 207. DESCENT AND DISTRIBUTION; ESCHEAT OF FRACTIONAL
INTERESTS.</DELETED>
<DELETED> ``(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--</DELETED>
<DELETED> ``(1) the decedent's heirs-at-law or relatives
within the first and second degree;</DELETED>
<DELETED> ``(2) a person who owns a preexisting interest in
the same parcel of land conveyed by the decedent;</DELETED>
<DELETED> ``(3) members of the Indian tribe with
jurisdiction over the lands devised; or</DELETED>
<DELETED> ``(4) the Indian tribe with jurisdiction over the
lands devised.</DELETED>
<DELETED> ``(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.</DELETED>
<DELETED> ``(c) Devise of Interests in the Same Parcel to More Than
1 Person.--</DELETED>
<DELETED> ``(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.</DELETED>
<DELETED> ``(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.</DELETED>
<DELETED> ``(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).</DELETED>
<DELETED> ``(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.</DELETED>
<DELETED> ``(5) Descent of off-reservation lands.--
</DELETED>
<DELETED> ``(A) Indian reservation defined.--For
purposes of this paragraph, the term `Indian
reservation' includes lands located within--</DELETED>
<DELETED> ``(i) Oklahoma; and</DELETED>
<DELETED> ``(ii) the boundaries of an Indian
tribe's former reservation (as defined and
determined by the Secretary).</DELETED>
<DELETED> ``(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--</DELETED>
<DELETED> ``(A) by testate or intestate succession
in trust to an Indian; or</DELETED>
<DELETED> ``(B) in fee status to any other devises
or heirs.</DELETED>
<DELETED> ``(6) Notice to indians.--</DELETED>
<DELETED> ``(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.</DELETED>
<DELETED> ``(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.</DELETED>
<DELETED> ``(d) Escheatable Fractional Interests.--</DELETED>
<DELETED> ``(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.</DELETED>
<DELETED> ``(2) Escheat.--An undivided interest referred to
in paragraph (1) shall escheat--</DELETED>
<DELETED> ``(A) to the Indian tribe on whose
reservation the interest is located; or</DELETED>
<DELETED> ``(B) if that interest is located outside
of a reservation, to the recognized tribal government
possessing jurisdiction over the land.''; and</DELETED>
<DELETED> (6) by adding at the end the following:</DELETED>
<DELETED>``SEC. 213. ACQUISITION OF FRACTIONAL INTERESTS.</DELETED>
<DELETED> ``(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.</DELETED>
<DELETED> ``(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.</DELETED>
<DELETED>``SEC. 214. ADMINISTRATION OF ACQUIRED FRACTIONAL INTERESTS,
DISPOSITION OF PROCEEDS.</DELETED>
<DELETED> ``(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.</DELETED>
<DELETED> ``(b) Conditions.--</DELETED>
<DELETED> ``(1) In general.--The conditions described in
this paragraph are as follows:</DELETED>
<DELETED> ``(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.</DELETED>
<DELETED> ``(B) The Secretary shall deposit any
revenue derived from interest paid under subparagraph
(A) in the Acquisition Fund created under section
216.</DELETED>
<DELETED> ``(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.</DELETED>
<DELETED> ``(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.</DELETED>
<DELETED> ``(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.</DELETED>
<DELETED> ``(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.</DELETED>
<DELETED> ``(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.</DELETED>
<DELETED>``SEC. 215. ESTABLISHING FAIR MARKET VALUE.</DELETED>
<DELETED> ``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.</DELETED>
<DELETED>``SEC. 216. ACQUISITION FUND.</DELETED>
<DELETED> ``(a) In General.--The Secretary shall establish an
Acquisition Fund to--</DELETED>
<DELETED> ``(1) disburse appropriations authorized to
accomplish the purposes of section 213; and</DELETED>
<DELETED> ``(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.</DELETED>
<DELETED> ``(b) Deposits; Use.--</DELETED>
<DELETED> ``(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--</DELETED>
<DELETED> ``(A) be deposited in the Acquisition
Fund; and</DELETED>
<DELETED> ``(B) as specified in advance in
appropriations Acts, be available for the purpose of
acquiring additional fractional interests in trust or
restricted lands.</DELETED>
<DELETED> ``(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.</DELETED>
<DELETED>``SEC. 217. DETERMINATION OF RESERVATION BOUNDARIES AND TRIBAL
JURISDICTION.</DELETED>
<DELETED> ``(a) Determination of Jurisdiction.--</DELETED>
<DELETED> ``(1) In general.--The Secretary shall determine
whether a parcel of land is--</DELETED>
<DELETED> ``(A) within an Indian reservation;
or</DELETED>
<DELETED> ``(B) otherwise subject to an Indian
tribe's jurisdiction.</DELETED>
<DELETED> ``(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.</DELETED>
<DELETED> ``(b) Rule of Construction.--Nothing in this Act may be
construed to affect section 2409a of title 28, United States
Code.</DELETED>
<DELETED>``SEC. 218. TRUST AND RESTRICTED LAND TRANSACTIONS.</DELETED>
<DELETED> ``(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.</DELETED>
<DELETED> ``(b) Valuation of Sales and Exchanges.--Notwithstanding
any other provision of law--</DELETED>
<DELETED> ``(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</DELETED>
<DELETED> ``(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.</DELETED>
<DELETED> ``(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.</DELETED>
<DELETED> ``(d) Gift Deeds.--</DELETED>
<DELETED> ``(1) In general.--An individual owner of an
interest in trust or restricted land may convey that interest
by gift deed to--</DELETED>
<DELETED> ``(A) an individual Indian who is a member
of the Indian tribe that exercises jurisdiction over
the land;</DELETED>
<DELETED> ``(B) the Indian tribe that exercises
jurisdiction over that land; or</DELETED>
<DELETED> ``(C) any other person whom the Secretary
determines may hold the land in trust or restricted
status.</DELETED>
<DELETED> ``(2) Special rule.--With respect to any gift deed
conveyed under this section, the Secretary shall not require an
appraisal.</DELETED>
<DELETED>``SEC. 219. REPORTS TO CONGRESS.</DELETED>
<DELETED> ``(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--</DELETED>
<DELETED> ``(1) the number of fractional interests in trust
or restricted lands acquired; and</DELETED>
<DELETED> ``(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.</DELETED>
<DELETED> ``(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).</DELETED>
<DELETED>``SEC. 220. APPROVAL OF LEASES, RIGHTS-OF-WAY, AND SALES OF
NATURAL RESOURCES.</DELETED>
<DELETED> ``(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--</DELETED>
<DELETED> ``(1) the owners of a majority interest in the
trust or restricted lands consent to the transaction;
and</DELETED>
<DELETED> ``(2) the Secretary determines that approval of
the transaction is in the best interest of the Indian
owners.</DELETED>
<DELETED> ``(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.</DELETED>
<DELETED>``SEC. 221. REAL ESTATE TRANSACTIONS INVOLVING NON-TRUST
LANDS.</DELETED>
<DELETED> ``(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.</DELETED>
<DELETED> ``(b) Lands.--Lands described in this subsection are lands
that are--</DELETED>
<DELETED> ``(1) acquired after the date of enactment of the
Indian Land Consolidation Act Amendments of 1999; and</DELETED>
<DELETED> ``(2) not held in trust or subject to a
preexisting Federal restriction on alienation imposed by the
United States.</DELETED>
<DELETED> ``(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.''.</DELETED>
<DELETED> (b) Effective Date; Applicability.--</DELETED>
<DELETED> (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.</DELETED>
<DELETED> (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).</DELETED>
<DELETED>SEC. 5. AUTHORIZATION OF APPROPRIATIONS.</DELETED>
<DELETED> There are authorized to be appropriated such sums as are
necessary to carry out this Act.</DELETED>
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Indian Land Consolidation Act
Amendments of 2000''.
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) 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 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
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 that 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 based on 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. 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;
(4) to promote tribal self-sufficiency and self-
determination; and
(5) to reverse the effects of the allotment policy on
Indian tribes.
SEC. 4. 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 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) 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 3 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 3 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 3 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 3 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(f)(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 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) Authority Available to Indian Tribes.--
``(1) Application.--The recognized tribal government that
has jurisdiction over an Indian reservation (as defined in
section 207(c)(5)) may exercise the authority provided for in
paragraph (2).
``(2) Authority to make payments in lieu of inheritance of
interest in land.--
``(A) Prohibition.--An individual who is not an
Indian shall not be entitled to receive by devise or
descent any interest in trust or restricted land,
except by reserving a life estate under subparagraph
(B)(ii), within the reservation over which a tribal
government has jurisdiction if, while the decedent's
estate is pending before the Secretary, the tribal
government referred to in paragraph (1) pays to the
Secretary, on behalf of such individual, the value of
such interest. The interest for which payment is made
under this subparagraph shall be held by the Secretary
in trust for the tribal government.
``(B) Exception.--
``(i) In general.--Subparagraph (A) shall
not apply to any interest in trust or
restricted land if, while the decedent's estate
is pending before the Secretary, the ineligible
non-Indian heir or devisee described in such
subparagraph renounces the interest in favor of
a person or persons who are otherwise eligible
to inherit.
``(ii) Reservation of life estate.--The
non-Indian heir or devisee described in clause
(i) may retain a life estate in the interest
and convey the remaining interest to an Indian
person.
``(iii) Presumption.--In the absence of any
express language to the contrary, a conveyance
under clause (ii) is presumed to reserve to the
life estate holder all income from the lease,
use, rents, profits, royalties, bonuses, or
sales of natural resources during the pendency
of the life estate and any right to occupy the
tract of land as a home.
``(C) Payments.--With respect to payments by a
tribal government under subparagraph (A), the Secretary
shall--
``(i) upon the request of the tribal
government, allow a reasonable period of time,
not to exceed 2 years, for the tribal
government to make payments of amounts due
pursuant to subparagraph (A); or
``(ii) recognize alternative agreed upon
exchanges of consideration between the
ineligible non-Indian and the tribe in
satisfaction of the payment under subparagraph
(A).
``(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; ESCHEAT OF FRACTIONAL INTERESTS.
``(a) Testamentary Disposition.--
``(1) In general.--Except as provided in this section,
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) Non-indian estate.--Any devise not described in
paragraph (1) shall create a non-Indian estate in Indian land
as provided for under subsection (c).
``(3) 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.
``(b) Intestate Succession.--
``(1) In general.--Subject to paragraphs (2) and (3), with
respect to an interest in trust or restricted land passing by
intestate succession, only a spouse or heirs of the first or
second degree may inherit such an interest.
``(2) Non-indian estate.--Notwithstanding paragraph (1), a
non-Indian spouse or non-Indian heir of the first or second
degree may only receive a non-Indian estate in Indian land as
provided for under subsection (c).
``(3) Joint tenancy.--
``(A) In general.--Unless modified by a tribal
probate code that is approved under section 206--
``(i) any heirs of the first or second
degree that inherit an interest that
constitutes 5 percent or more of the undivided
interest in a parcel of trust or restricted
land, shall hold such interest as tenants in
common; and
``(ii) any heirs of the first or second
degree that inherit an interest that
constitutes less than 5 percent of the
undivided interest in a parcel of trust or
restricted land, shall hold such interest as
joint tenants with the right of survivorship.
``(B) Renouncing of rights.--The heirs who inherit
an interest as tenants in common with a right of
survivorship under subparagraph (A)(ii) may renounce
their right of survivorship in favor of one or more of their co-owners.
``(4) Acquisition of interest by indian co-owners.--An
Indian co-owner of a parcel of trust or restricted land may
prevent the escheat of an interest in Indian lands for which
there is no legal heir 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 interest, the
highest bidder shall obtain the interest. If no such offer is
made, the interest will escheat to the tribe that exercises
jurisdiction over the land.
``(c) Non-Indian Estates.--
``(1) Rights of non-indian estate holders.--
``(A) In general.--An individual who receives a
non-Indian estate in Indian land under subsection
(a)(2) or (b)(2)--
``(i) shall receive a proportionate share
of the proceeds of any lease, use, rents,
profits, royalties, bonuses, or sale of natural
resources based on their share of the
decedent's interest in such land; and
``(ii) may--
``(I) convey or deed by gift the
decedent's interest in trust or
restricted land to an Indian or the
tribe with jurisdiction over the land;
or
``(II) devise the decedent's
interest to either an Indian or an
Indian tribe as provided for in
subsection (a)(1) or a non-Indian as
provided for in subsection (a)(2).
``(B) Decedent's interest.--In this section, the
term `decedent's interest' means the equitable title
held by the last Indian owner of an interest in trust
or restricted lands.
``(2) Escheat and intestate succession.--If the holder of a
non-Indian estate in Indian land dies without having devised or
conveyed the interest of the individual under paragraph
(1)(A)(ii), the decedent's interest in the trust or restricted
land involved shall--
``(A) descend to the non-Indian estateholder's
Indian spouse or Indian heirs of the first or second
degree as provided for in subsection (b)(3); or
``(B) in the case of a decedent that does not have
an Indian spouse or heir of the first or second degree,
descend to the Indian tribe having jurisdiction over
the trust or restricted lands.
``(3) Acquisition of interest by indian co-owners.--An
Indian co-owner of a parcel of trust or restricted land may
prevent the escheat of an interest to the tribe under paragraph
(2) by paying into the estate of the owner of a non-Indian
estate in Indian land the fair market value of the interest. If
more than 1 Indian co-owner offers to pay for such interest,
the highest bidder shall obtain the interest.
``(4) Devise of interest.--If the owner of a non-Indian
estate in Indian land devises the interest in such land to a
person who is not an Indian, at the discretion of the Secretary
and subject to the availability of appropriations, the
Secretary may, pursuant to section 213, acquire such interest,
with or without the consent of the devisee, by depositing the
value of the interest in the estate of the owner of the non-
Indian estate in Indian land.
``(5) Rule of construction.--
``(A) In general.--With respect to a decedent's
interest in trust or restricted lands under this
subsection, until such time as an Indian or an Indian
tribe acquires such interest through inheritance,
escheat, or conveyance, the Secretary shall be treated
as the holder of the remainder from the life estate.
``(B) Limitation.--Subparagraph (A) shall not be
construed to authorize the Secretary to retain any of
the proceeds from the lease, use, rents, profits,
royalties, bonuses, or sale of natural resources with
respect to the trust or restricted lands involved.
``(6) Descent of off-reservation lands.--
``(A) Indian reservation defined.--For purposes of
this paragraph, the term `Indian reservation' includes
lands located within--
``(i)(I) Oklahoma; and
``(II) the boundaries of an Indian tribe's
former reservation (as defined and determined
by the Secretary);
``(ii) the boundaries of any Indian tribe's
current or former reservation; or
``(iii) any area where the Secretary is
required to provide special assistance or
consideration of a tribe's acquisition of land
or interests in land.
``(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--
``(i) by testate or intestate succession in
trust to an Indian; or
``(ii) in fee status to any other devises
or heirs.
``(d) 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.
``(e) 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(g).
``(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.
``(f) 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).''; and
(5) 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,
except as provided in section 207(c)(4), 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(f)(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 reservation.
``(b) Requirements.--In implementing subsection (a), the
Secretary--
``(1) shall promote the policies provided for in section 3
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 reservation's
recognized tribal government in determining which
tracts to acquire on a reservation;
``(B) shall coordinate the acquisition activities
with the reservation's recognized tribal government's
acquisition program, 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 reservation's recognized tribal
government 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) 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.
``(2) Limitations.--
``(A) Tribal consent.--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.
``(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.
``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) Except as provided in subsection (d), until
the purchase price paid by the Secretary for an
interest referred to in subsection (a) has been
recovered, 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) Effect on Indian Tribe.--
``(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.
``(a) In General.--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.
``(b) Rule of Construction.--Nothing in this section shall be
construed to prevent the owner of an interest in trust or restricted
lands from appealing a determination of fair market value made in
accordance with this section.
``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. 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 and between Indians and a reservation's
recognized tribal government 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 and Exchanges 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 or
exchanging 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 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 or exchanging 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 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.
``(e) 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; or
``(B) the Indian tribe that exercises jurisdiction
over that land.
``(2) Special rule.--With respect to any gift deed conveyed
under this section, the Secretary shall not require an
appraisal and the transaction shall be consistent with this Act
and any other provision of Federal law.
``(f) No Termination.--During the 7-year period beginning on the
date on which the Secretary approves a conveyance of an interest in
trust or restricted land under subsection (e), the Secretary shall not
approve an application to terminate the trust status of, or remove the
restrictions on, such an interest.
``(g) 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
reservation 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.
``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, 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.
``(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) Effect on indian tribe.--
``(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.) 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. 5. JUDICIAL REVIEW.
Notwithstanding section 207(f)(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(f)(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 their interest 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. 6. 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 Act (and the amendments made by this Act) that are
not otherwise funded under the authority provided for in any other
provision of Federal law.
SEC. 7. 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 ``trust:'' and inserting ``trust,
except as provided by the Indian Land Consolidation Act:''.
Calendar No. 714
106th CONGRESS
2d Session
S. 1586
[Report No. 106-361]
_______________________________________________________________________
A BILL
To reduce the fractionated ownership of Indian lands, and for other
purposes.
_______________________________________________________________________
July 26, 2000
Reported with an amendment