[Congressional Bills 108th Congress]
[From the U.S. Government Publishing Office]
[S. 1721 Enrolled Bill (ENR)]
S.1721
One Hundred Eighth Congress
of the
United States of America
AT THE SECOND SESSION
Begun and held at the City of Washington on Tuesday,
the twentieth day of January, two thousand and four
An Act
To amend the Indian Land Consolidation Act to improve provisions
relating to probate of trust and restricted land, 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 ``American Indian Probate Reform Act
of 2004''.
SEC. 2. FINDINGS.
Congress finds that--
(1) the Act of February 8, 1887 (commonly known as the ``Indian
General Allotment Act'') (25 U.S.C. 331 et seq.), which authorized
the allotment of Indian reservations, did not permit Indian
allotment owners to provide for the testamentary disposition of the
land that was allotted to them;
(2) that Act provided that allotments would descend according
to State law of intestate succession based on the location of the
allotment;
(3) the reliance of the Federal Government on the State law of
intestate succession with respect to the descent of allotments has
resulted in numerous problems affecting Indian tribes, members of
Indian tribes, and the Federal Government, including--
(A) the increasingly fractionated ownership of trust and
restricted land as that land is inherited by successive
generations of owners as tenants in common;
(B) the application of different rules of intestate
succession to each interest of a decedent in or to trust or
restricted land if that land is located within the boundaries
of more than 1 State, which application--
(i) makes probate planning unnecessarily difficult; and
(ii) impedes efforts to provide probate planning
assistance or advice;
(C) the absence of a uniform general probate code for trust
and restricted land, which makes it difficult for Indian tribes
to work cooperatively to develop tribal probate codes; and
(D) the failure of Federal law to address or provide for
many of the essential elements of general probate law, either
directly or by reference, which--
(i) is unfair to the owners of trust and restricted
land (and heirs and devisees of owners); and
(ii) makes probate planning more difficult;
(4) a uniform Federal probate code would likely--
(A) reduce the number of fractionated interests in trust or
restricted land;
(B) facilitate efforts to provide probate planning
assistance and advice and create incentives for owners of trust
and restricted land to engage in estate planning;
(C) facilitate intertribal efforts to produce tribal
probate codes in accordance with section 206 of the Indian Land
Consolidation Act (25 U.S.C. 2205); and
(D) provide essential elements of general probate law that
are not applicable on the date of enactment of this Act to
interests in trust or restricted land; and
(5) the provisions of a uniform Federal probate code and other
forth in this Act should operate to further the policy of the
United States as stated in the Indian Land Consolidated Act
Amendments of 2000, Public Law 106-462, 102, November 7, 2000, 114
Stat. 1992.
SEC. 3. INDIAN PROBATE REFORM.
(a) Nontestamentary Disposition.--Section 207 of the Indian Land
Consolidation Act (25 U.S.C. 2206) is amended by striking subsection
(a) and inserting the following:
``(a) Nontestamentary Disposition.--
``(1) Rules of descent.--Subject to any applicable Federal law
relating to the devise or descent of trust or restricted property,
any trust or restricted interest in land or interest in trust
personalty that is not disposed of by a valid will--
``(A) shall descend according to an applicable tribal
probate code approved in accordance with section 206; or
``(B) in the case of a trust or restricted interest in land
or interest in trust personalty to which a tribal probate code
does not apply, shall descend in accordance with--
``(i) paragraphs (2) through (5); and
``(ii) other applicable Federal law.
``(2) Rules governing descent of estate.--
``(A) Surviving spouse.--If there is a surviving spouse of
the decedent, such spouse shall receive trust and restricted
land and trust personalty in the estate as follows:
``(i) If the decedent is survived by 1 or more eligible
heirs described in subparagraph (B) (i), (ii), (iii), or
(iv), the surviving spouse shall receive \1/3\ of the trust
personalty of the decedent and a life estate without regard
to waste in the interests in trust or restricted lands of
the decedent.
``(ii) If there are no eligible heirs described in
subparagraph (B) (i), (ii), (iii), or (iv), the surviving
spouse shall receive all of the trust personalty of the
decedent and a life estate without regard to waste in the
trust or restricted lands of the decedent.
``(iii) The remainder shall pass as set forth in
subparagraph (B).
``(iv) Trust personalty passing to a surviving spouse
under the provisions of this subparagraph shall be
maintained by the Secretary in an account as trust
personalty, but only if such spouse is Indian.
``(B) Individual and tribal heirs.--Where there is no
surviving spouse of the decedent, or there is a remainder
interest pursuant to subparagraph (A), the trust or restricted
estate or such remainder shall, subject to subparagraphs (A)
and (D), pass as follows:
``(i) To those of the decedent's children who are
eligible heirs (or if 1 or more of such children do not
survive the decedent, the children of any such deceased
child who are eligible heirs, by right of representation,
but only if such children of the deceased child survive the
decedent) in equal shares.
``(ii) If the property does not pass under clause (i),
to those of the decedent's surviving great-grandchildren
who are eligible heirs, in equal shares.
``(iii) If the property does not pass under clause (i)
or (ii), to the decedent's surviving parent who is an
eligible heir, and if both parents survive the decedent and
are both eligible heirs, to both parents in equal shares.
``(iv) If the property does not pass under clause (i),
(ii), or (iii), to those of the decedent's surviving
siblings who are eligible heirs, in equal shares.
``(v) If the property does not pass under clause (i),
(ii), (iii), or (iv), to the Indian tribe with jurisdiction
over the interests in trust or restricted lands;
except that notwithstanding clause (v), an Indian co-owner
(including the Indian tribe referred to in clause (v)) of a
parcel of trust or restricted land may acquire an interest that
would otherwise descend under that clause by paying into the
estate of the decedent, before the close of the probate of the
estate, the fair market value of the interest in the land; if
more than 1 Indian co-owner offers to pay for such interest,
the highest bidder shall acquire the interest.
``(C) No indian tribe.--
``(i) In general.--If there is no Indian tribe with
jurisdiction over the interests in trust or restricted
lands that would otherwise descend under subparagraph
(B)(v), then such interests shall be divided equally among
co-owners of trust or restricted interests in the parcel;
if there are no such co-owners, then to the United States,
provided that any such interests in land passing to the
United States under this subparagraph shall be sold by the
Secretary and the proceeds from such sale deposited into
the land acquisition fund established under section 216 (25
U.S.C. 2215) and used for the purposes described in
subsection (b) of that section.
``(ii) Contiguous parcel.--If the interests passing to
the United States under this subparagraph are in a parcel
of land that is contiguous to another parcel of trust or
restricted land, the Secretary shall give the owner or
owners of the trust or restricted interest in the
contiguous parcel the first opportunity to purchase the
interest at not less than fair market value determined in
accordance with this Act. If more than 1 such owner in the
contiguous parcel request to purchase the parcel, the
Secretary shall sell the parcel by public auction or sealed
bid (as determined by the Secretary) at not less than fair
market value to the owner of a trust or restricted interest
in the contiguous parcel submitting the highest bid.
``(D) Intestate descent of small fractional interests in
land.--
``(i) General rule.--Notwithstanding subparagraphs (A)
and (B), and subject to any applicable Federal law, any
trust or restricted interest in land in the decedent's
estate that is not disposed of by a valid will and
represents less than 5 percent of the entire undivided
ownership of the parcel of land of which such interest is a
part, as evidenced by the decedent's estate inventory at
the time of the heirship determination, shall descend in
accordance with clauses (ii) through (iv).
``(ii) Surviving spouse.--If there is a surviving
spouse, and such spouse was residing on a parcel of land
described in clause (i) at the time of the decedent's
death, the spouse shall receive a life estate without
regard to waste in the decedent's trust or restricted
interest in only such parcel, and the remainder interest in
that parcel shall pass in accordance with clause (iii).
``(iii) Single heir rule.--Where there is no life
estate created under clause (ii) or there is a remainder
interest under that clause, the trust or restricted
interest or remainder interest that is subject to this
subparagraph shall descend, in trust or restricted status,
to--
``(I) the decedent's surviving child, but only if
such child is an eligible heir; and if 2 or more
surviving children are eligible heirs, then to the
oldest of such children;
``(II) if the interest does not pass under
subclause (I), the decedent's surviving grandchild, but
only if such grandchild is an eligible heir; and if 2
or more surviving grandchildren are eligible heirs,
then to the oldest of such grandchildren;
``(III) if the interest does not pass under
subclause (I) or (II), the decedent's surviving great
grandchild, but only if such great grandchild is an
eligible heir; and if 2 or more surviving great
grandchildren are eligible heirs, then to the oldest of
such great grandchildren;
``(IV) if the interest does not pass under
subclause (I), (II), or (III), the Indian tribe with
jurisdiction over the interest; or
``(V) if the interest does not pass under subclause
(I), (II), or (III), and there is no such Indian tribe
to inherit the property under subclause (IV), the
interest shall be divided equally among co-owners of
trust or restricted interests in the parcel; and if
there are no such co-owners, then to the United States,
to be sold, and the proceeds from sale used, in the
same manner provided in subparagraph (C).
The determination of which person is the oldest eligible heir
for inheritance purposes under this clause shall be made by the
Secretary in the decedent's probate proceeding and shall be
consistent with the provisions of this Act.
``(iv) Exceptions.--Notwithstanding clause (iii)--
``(I)(aa) the heir of an interest under clause
(iii), unless the heir is a minor or incompetent
person, may agree in writing entered into the record of
the decedent's probate proceeding to renounce such
interest, in trust or restricted status, in favor of--
``(AA) any other eligible heir or Indian person
related to the heir by blood, but in any case never
in favor of more than 1 such heir or person;
``(BB) any co-owner of another trust or
restricted interest in such parcel of land; or
``(CC) the Indian tribe with jurisdiction over
the interest, if any; and
``(bb) the Secretary shall give effect to such
agreement in the distribution of the interest in the
probate proceeding; and
``(II) the governing body of the Indian tribe with
jurisdiction over an interest in trust or restricted
land that is subject to the provisions of this
subparagraph may adopt a rule of intestate descent
applicable to such interest that differs from the order
of decedent set forth in clause (iii). The Secretary
shall apply such rule to the interest in distributing
the decedent's estate, but only if--
``(aa) a copy of the tribal rule is delivered
to the official designated by the Secretary to
receive copies of tribal rules for the purposes of
this clause;
``(bb) the tribal rule provides for the
intestate inheritance of such interest by no more
than 1 heir, so that the interest does not further
fractionate;
``(cc) the tribal rule does not apply to any
interest disposed of by a valid will;
``(dd) the decedent died on or after the date
described in subsection (b) of section 8 of the
American Indian Probate Act of 2004, or on or after
the date on which a copy of the tribal rule was
delivered to the Secretary pursuant to item (aa),
whichever is later; and
``(ee) the Secretary does not make a
determination within 90 days after a copy of the
tribal rule is delivered pursuant to item (aa) that
the rule would be unreasonably difficult to
administer or does not conform with the
requirements in item (bb) or (cc).
``(v) Rule of construction.--This subparagraph shall
not be construed to limit a person's right to devise any
trust or restricted interest by way of a valid will in
accordance with subsection (b).
``(3) Right of representation.--If, under this subsection, all
or any part of the estate of a decedent is to pass to children of a
deceased child by right of representation, that part is to be
divided into as many equal shares as there are living children of
the decedent and pre-deceased children who left issue who survive
the decedent. Each living child of the decedent, if any, shall
receive 1 share, and the share of each pre-deceased child shall be
divided equally among the pre-deceased child's children.
``(4) Special rule relating to survival.--In the case of
intestate succession under this subsection, if an individual fails
to survive the decedent by at least 120 hours, as established by
clear and convincing evidence--
``(A) the individual shall be deemed to have predeceased
the decedent for the purpose of intestate succession; and
``(B) the heirs of the decedent shall be determined in
accordance with this section.
``(5) Status of inherited interests.--Except as provided in
paragraphs (2) (A) and (D) regarding the life estate of a surviving
spouse, a trust or restricted interest in land or trust personalty
that descends under the provisions of this subsection shall vest in
the heir in the same trust or restricted status as such interest
was held immediately prior to the decedent's death.''.
(b) Testamentary Disposition.--Section 207 of the Indian Land
Consolidation Act (25 U.S.C. 2206) is amended by striking subsection
(b) and inserting the following:
``(b) Testamentary Disposition.--
``(1) General devise of an interest in trust or restricted
land.--
``(A) In general.--Subject to any applicable Federal law
relating to the devise or descent of trust or restricted land,
or a tribal probate code approved by the Secretary in
accordance with section 206, the owner of a trust or restricted
interest in land may devise such interest to--
``(i) any lineal descendant of the testator;
``(ii) any person who owns a preexisting undivided
trust or restricted interest in the same parcel of land;
``(iii) the Indian tribe with jurisdiction over the
interest in land; or
``(iv) any Indian;
in trust or restricted status.
``(B) Rules of interpretation.--Any devise of a trust or
restricted interest in land pursuant to subparagraph (A) to an
Indian or the Indian tribe with jurisdiction over the interest
shall be deemed to be a devise of the interest in trust or
restricted status. Any devise of a trust or restricted interest
in land to a person who is only eligible to be a devisee under
clause (i) or (ii) of subparagraph (A) shall be presumed to be
a devise of the interest in trust or restricted status unless
language in such devise clearly evidences an intent on the part
of the testator that the interest is to pass as a life estate
or fee interest in accordance with paragraph (2)(A).
``(2) Devise of trust or restricted land as a life estate or in
fee.--
``(A) In general.--Except as provided under any applicable
Federal law, any trust or restricted interest in land that is
not devised in accordance with paragraph (1)(A) may be devised
only--
``(i) as a life estate to any person, with the
remainder being devised only in accordance with
subparagraph (B) or paragraph (1); or
``(ii) except as provided in subparagraph (B), as a fee
interest without Federal restrictions against alienation to
any person who is not eligible to be a devisee under clause
(iv) of paragraph (1)(A).
``(B) Indian reorganization act lands.--Any interest in
trust or restricted land that is subject to section 4 of the
Act of June 18, 1934 (25 U.S.C. 464), may be devised only in
accordance with--
``(i) that section;
``(ii) subparagraph (A)(i); or
``(iii) paragraph (1)(A);
provided that nothing in this section or in section 4 of the
Act of June 18, 1934 (25 U.S.C. 464), shall be construed to
authorize the devise of any interest in trust or restricted
land that is subject to section 4 of that Act to any person as
a fee interest under subparagraph (A)(ii).
``(3) General devise of an interest in trust personalty.--
``(A) Trust personality defined.--The term `trust
personalty' as used in this section includes all funds and
securities of any kind which are held in trust in an individual
Indian money account or otherwise supervised by the Secretary.
``(B) In general.--Subject to any applicable Federal law
relating to the devise or descent of such trust personalty, or
a tribal probate code approved by the Secretary in accordance
with section 206, the owner of an interest in trust personalty
may devise such an interest to any person or entity.
``(C) Maintenance as trust personalty.--In the case of a
devise of an interest in trust personalty to a person or Indian
tribe eligible to be a devisee under paragraph (1)(A), the
Secretary shall maintain and continue to manage such interests
as trust personalty.
``(D) Direct disbursement and distribution.--In the case of
a devise of an interest in trust personalty to a person or
Indian tribe not eligible to be a devisee under paragraph
(1)(A), the Secretary shall directly disburse and distribute
such personalty to the devisee.
``(4) Invalid devises and wills.--
``(A) Land.--Any trust or restricted interest in land that
is not devised in accordance with paragraph (1) or (2) or that
is not disposed of by a valid will shall descend in accordance
with the applicable law of intestate succession as provided for
in subsection (a).
``(B) Personalty.--Any trust personalty that is not
disposed of by a valid will shall descend in accordance with
the applicable law of intestate succession as provided for in
subsection (a).''.
(c) Joint Tenancy; Right of Survivorship.--Section 207(c) of the
Indian Land Consolidation Act (25 U.S.C. 2206(c)) is amended by
striking all that follows the heading, ``Joint Tenancy; Right of
Survivorship'', and inserting the following:
``(1) Presumption of joint tenancy.--If a testator devises
trust or restricted interests in the same parcel of land to more
than 1 person, in the absence of clear and express language in the
devise stating that the interest is to pass to the devisees as
tenants in common, the devise shall be presumed to create a joint
tenancy with the right of survivorship in the interests involved.
``(2) Exception.--Paragraph (1) shall not apply to any devise
of an interest in trust or restricted land where the will in which
such devise is made was executed prior to the date that is 1 year
after the date on which the Secretary publishes the certification
required by section 8(a)(4) of the American Indian Probate Reform
Act of 2004.''.
(d) Rule of Construction.--Section 207 of the Indian Land
Consolidation Act (25 U.S.C. 2206) is amended by adding at the end the
following:
``(h) Applicable Federal Law.--
``(1) In general.--Any references in subsections (a) and (b) to
applicable Federal law include--
``(A) Public Law 91-627 (84 Stat. 1874);
``(B) Public Law 92-377 (86 Stat. 530);
``(C) Public Law 92-443 (86 Stat. 744);
``(D) Public Law 96-274 (94 Stat. 537); and
``(E) Public Law 98-513 (98 Stat. 2411).
``(2) No effect on laws.--Nothing in this Act amends or
otherwise affects the application of any law described in paragraph
(1), or any other Federal law that pertains to--
``(A) trust or restricted land located on 1 or more
specific Indian reservations that are expressly identified in
such law; or
``(B) the allotted lands of 1 or more specific Indian
tribes that are expressly identified in such law.
``(i) Rules of Interpretation.--In the absence of a contrary
intent, and except as otherwise provided under this Act, applicable
Federal law, or a tribal probate code approved by the Secretary
pursuant to section 206, wills shall be construed as to trust and
restricted land and trust personalty in accordance with the following
rules:
``(1) Construction that will passes all property.--A will shall
be construed to apply to all trust and restricted land and trust
personalty which the testator owned at his death, including any
such land or personalty acquired after the execution of his will.
``(2) Class gifts.--
``(A) No differentiation between relationship by blood and
relationship by affinity.--Terms of relationship that do not
differentiate relationships by blood from those by affinity,
such as `uncles', `aunts', `nieces', or `nephews', are
construed to exclude relatives by affinity. Terms of
relationship that do not differentiate relationships by the
half blood from those by the whole blood, such as `brothers',
`sisters', `nieces', or `nephews', are construed to include
both types of relationships.
``(B) Meaning of `heirs' and `next of kin', etc.; time of
ascertaining class.--A devise of trust or restricted interest
in land or an interest in trust personalty to the testator's or
another designated person's `heirs', `next of kin',
`relatives', or `family' shall mean those persons, including
the spouse, who would be entitled to take under the provisions
of this Act for nontestamentary disposition. The class is to be
ascertained as of the date of the testator's death.
``(C) Time for ascertaining class.--In construing a devise
to a class other than a class described in subparagraph (B),
the class shall be ascertained as of the time the devise is to
take effect in enjoyment. The surviving issue of any member of
the class who is then dead shall take by right of
representation the share which their deceased ancestor would
have taken.
``(3) Meaning of `die without issue' and similar phrases.--In
any devise under this chapter, the words `die without issue', `die
without leaving issue', `have no issue', or words of a similar
import shall be construed to mean that an individual had no lineal
descendants in his lifetime or at his death, and not that there
will be no lineal descendants at some future time.
``(4) Persons born out of wedlock.--In construing provisions of
this chapter relating to lapsed and void devises, and in construing
a devise to a person or persons described by relationship to the
testator or to another, a person born out of wedlock shall be
considered the child of the natural mother and also of the natural
father.
``(5) Lapsed devises.--Subject to the provisions of subsection
(b), where the testator devises or bequeaths a trust or restricted
interest in land or trust personalty to the testator's grandparents
or to the lineal descendent of a grandparent, and the devisee or
legatee dies before the testator leaving lineal descendents, such
descendents shall take the interest so devised or bequeathed per
stirpes.
``(6) Void devises.--Except as provided in paragraph (5), and
if the disposition shall not be otherwise expressly provided for by
a tribal probate code approved under section 206 (25 U.S.C. 2205),
if a devise other than a residuary devise of a trust or restricted
interest in land or trust personalty fails for any reason, such
interest shall become part of the residue and pass, subject to the
provisions of subsection (b), to the other residuary devisees, if
any, in proportion to their respective shares or interests in the
residue.
``(7) Family cemetery plot.--If a family cemetery plot owned by
the testator at his decease is not mentioned in the decedent's
will, the ownership of the plot shall descend to his heirs as if he
had died intestate.
``(j) Heirship by Killing.--
``(1) Heir by killing defined.--As used in this subsection,
`heir by killing' means any person who knowingly participates,
either as a principal or as an accessory before the fact, in the
willful and unlawful killing of the decedent.
``(2) No acquisition of property by killing.--Subject to any
applicable Federal law relating to the devise or descent of trust
or restricted land, no heir by killing shall in any way acquire any
trust or restricted interests in land or interests in trust
personalty as the result of the death of the decedent, but such
property shall pass in accordance with this subsection.
``(3) Descent, distribution, and right of survivorship.--The
heir by killing shall be deemed to have predeceased the decedent as
to decedent's trust or restricted interests in land or trust
personalty which would have passed from the decedent or his estate
to such heir--
``(A) under intestate succession under this section;
``(B) under a tribal probate code, unless otherwise
provided for;
``(C) as the surviving spouse;
``(D) by devise;
``(E) as a reversion or a vested remainder;
``(F) as a survivorship interest; and
``(G) as a contingent remainder or executory or other
future interest.
``(4) Joint tenants, joint owners, and joint obligees.--
``(A) Any trust or restricted land or trust personalty held
by only the heir by killing and the decedent as joint tenants,
joint owners, or joint obligees shall pass upon the death of
the decedent to his or her estate, as if the heir by killing
had predeceased the decedent.
``(B) As to trust or restricted land or trust personalty
held jointly by 3 or more persons, including both the heir by
killing and the decedent, any income which would have accrued
to the heir by killing as a result of the death of the decedent
shall pass to the estate of the decedent as if the heir by
killing had predeceased the decedent and any surviving joint
tenants.
``(C) Notwithstanding any other provision of this
subsection, the decedent's trust or restricted interest land or
trust personalty that is held in a joint tenancy with the right
of survivorship shall be severed from the joint tenancy as
though the property held in the joint tenancy were to be
severed and distributed equally among the joint tenants and the
decedent's interest shall pass to his estate; the remainder of
the interests shall remain in joint tenancy with right of
survivorship among the surviving joint tenants.
``(5) Life estate for the life of another.--If the estate is
held by a third person whose possession expires upon the death of
the decedent, it shall remain in such person's hands for the period
of time following the decedent's death equal to the life expectancy
of the decedent but for the killing.
``(6) Preadjudication rule.--
``(A) In general.--If a person has been charged, whether by
indictment, information, or otherwise by the United States, a
tribe, or any State, with voluntary manslaughter or homicide in
connection with a decedent's death, then any and all trust or
restricted land or trust personalty that would otherwise pass
to that person from the decedent's estate shall not pass or be
distributed by the Secretary until the charges have been
resolved in accordance with the provisions of this paragraph.
``(B) Dismissal or withdrawal.--Upon dismissal or
withdrawal of the charge, or upon a verdict of not guilty, such
land and personalty shall pass as if no charge had been filed
or made.
``(C) Conviction.--Upon conviction of such person, and the
exhaustion of all appeals, if any, the trust and restricted
land and trust personalty in the estate shall pass in
accordance with this subsection.
``(7) Broad construction; policy of subsection.--This
subsection shall not be considered penal in nature, but shall be
construed broadly in order to effect the policy that no person
shall be allowed to profit by his own wrong, wherever committed.
``(k) General Rules Governing Probate.--
``(1) Scope.--Except as provided under applicable Federal law
or a tribal probate code approved under section 206, the provisions
of this subsection shall govern the probate of estates containing
trust and restricted interests in land or trust personalty.
``(2) Pretermitted spouses and children.--
``(A) Spouses.--
``(i) In general.--Except as provided in clause (ii),
if the surviving spouse of a testator married the testator
after the testator executed the will of the testator, the
surviving spouse shall receive the intestate share in the
decedent's trust or restricted land and trust personalty
that the spouse would have received if the testator had
died intestate.
``(ii) Exception.--Clause (i) shall not apply to a
trust or restricted interest land where--
``(I) the will of a testator is executed before the
date of enactment of this subparagraph;
``(II)(aa) the spouse of a testator is a non-
Indian; and
``(bb) the testator devised the interests in trust
or restricted land of the testator to 1 or more
Indians;
``(III) it appears, based on an examination of the
will or other evidence, that the will was made in
contemplation of the marriage of the testator to the
surviving spouse;
``(IV) the will expresses the intention that the
will is to be effective notwithstanding any subsequent
marriage; or
``(V)(aa) the testator provided for the spouse by a
transfer of funds or property outside the will; and
``(bb) an intent that the transfer be in lieu of a
testamentary provision is demonstrated by statements of
the testator or through a reasonable inference based on
the amount of the transfer or other evidence.
``(iii) Spouses married at the time of the will.--
Should the surviving spouse of the testator be omitted from
the will of the testator, the surviving spouse shall be
treated, for purposes of trust or restricted land or trust
personalty in the testator's estate, in accordance with the
provisions of section 207(a)(2)(A), as though there was no
will but only if--
``(I) the testator and surviving spouse were
continuously married without legal separation for the
5-year period preceding the decedent's death;
``(II) the testator and surviving spouse have a
surviving child who is the child of the testator;
``(III) the surviving spouse has made substantial
payments toward the purchase of, or improvements to,
the trust or restricted land in such estate; or
``(IV) the surviving spouse is under a binding
obligation to continue making loan payments for the
trust or restricted land for a substantial period of
time;
except that, if there is evidence that the testator
adequately provided for the surviving spouse and any minor
children by a transfer of funds or property outside of the
will, this clause shall not apply.
``(B) Children.--
``(i) In general.--If a testator executed the will of
the testator before the birth or adoption of 1 or more
children of the testator, and the omission of the children
from the will is a product of inadvertence rather than an
intentional omission, the children shall share in the trust
or restricted interests in land and trust personalty as if
the decedent had died intestate.
``(ii) Adopted heirs.--Any person recognized as an heir
by virtue of adoption under the Act of July 8, 1940 (25
U.S.C. 372a), shall be treated as the child of a decedent
under this subsection.
``(iii) Adopted-out children.--
``(I) In general.--For purposes of this Act, an
adopted person shall not be considered the child or
issue of his natural parents, except in distributing
the estate of a natural kin, other than the natural
parent, who has maintained a family relationship with
the adopted person. If a natural parent shall have
married the adopting parent, the adopted person for
purposes of inheritance by, from and through him shall
also be considered the issue of such natural parent.
``(II) Eligible heir pursuant to other federal law
or tribal law.--Notwithstanding the provisions of
subparagraph (B)(iii)(I), other Federal laws and laws
of the Indian tribe with jurisdiction over the trust or
restricted interest in land may otherwise define the
inheritance rights of adopted-out children.
``(3) Divorce.--
``(A) Surviving spouse.--
``(i) In general.--An individual who is divorced from a
decedent, or whose marriage to the decedent has been
annulled, shall not be considered to be a surviving spouse
unless, by virtue of a subsequent marriage, the individual
is married to the decedent at the time of death of the
decedent.
``(ii) Separation.--A decree of separation that does
not dissolve a marriage, and terminate the status of
husband and wife, shall not be considered a divorce for the
purpose of this subsection.
``(iii) No effect on adjudications.--Nothing in clause
(i) shall prevent the Secretary from giving effect to a
property right settlement relating to a trust or restricted
interest in land or an interest in trust personalty if 1 of
the parties to the settlement dies before the issuance of a
final decree dissolving the marriage of the parties to the
property settlement.
``(B) Effect of subsequent divorce on a will or devise.--
``(i) In general.--If, after executing a will, a
testator is divorced or the marriage of the testator is
annulled, as of the effective date of the divorce or
annulment, any disposition of trust or restricted interests
in land or of trust personalty made by the will to the
former spouse of the testator shall be considered to be
revoked unless the will expressly provides otherwise.
``(ii) Property.--Property that is prevented from
passing to a former spouse of a decedent under clause (i)
shall pass as if the former spouse failed to survive the
decedent.
``(iii) Provisions of wills.--Any provision of a will
that is considered to be revoked solely by operation of
this subparagraph shall be revived by the remarriage of a
testator to the former spouse of the testator.
``(4) After-born heirs.--A child in gestation at the time of
decedent's death will be treated as having survived the decedent if
the child lives at least 120 hours after its birth.
``(5) Advancements of trust personalty during lifetime; effect
on distribution of estate.--
``(A) The trust personalty of a decedent who dies intestate
as to all or a portion of his or her estate, given during the
decedent's lifetime to a person eligible to be an heir of the
decedent under subsection (b)(2)(B), shall be treated as an
advancement against the heir's inheritance, but only if the
decedent declared in a contemporaneous writing, or the heir
acknowledged in writing, that the gift is an advancement or is
to be taken into account in computing the division and
distribution of the decedent's intestate estate.
``(B) For the purposes of this section, trust personalty
advanced during the decedent's lifetime is valued as of the
time the heir came into possession or enjoyment of the property
or as of the time of the decedent's death, whichever occurs
first.
``(C) If the recipient of the trust personalty predeceases
the decedent, the property shall not be treated as an
advancement or taken into account in computing the division and
distribution of the decedent's intestate estate unless the
decedent's contemporaneous writing provides otherwise.
``(6) Heirs related to decedent through 2 lines; single
share.--A person who is related to the decedent through 2 lines of
relationship is entitled to only a single share of the trust or
restricted land or trust personalty in the decedent's estate based
on the relationship that would entitle such person to the larger
share.
``(7) Notice.--
``(A) In general.--To the maximum extent practicable, the
Secretary shall notify each owner of trust and restricted land
of the provisions of this Act.
``(B) Combined notices.--The notice under subparagraph (A)
may, at the discretion of the Secretary, be provided with the
notice required under subsection (a) of
section 8 of the American Indian Probate Reform Act of 2004.
``(8) Renunciation or disclaimer of interests.--
``(A) In general.--Any person 18 years of age or older may
renounce or disclaim an inheritance of a trust or restricted
interest in land or in trust personalty through intestate
succession or devise, either in full or subject to the
reservation of a life estate (where the interest is an interest
in land), in accordance with subparagraph (B), by filing a
signed and acknowledged declaration with the probate
decisionmaker prior to entry of a final probate order. No
interest so renounced or disclaimed shall be considered to have
vested in the renouncing or disclaiming heir or devisee, and
the renunciation or disclaimer shall not be considered to be a
transfer or gift of the renounced or disclaimed interest.
``(B) Eligible recipients of renounced or disclaimed
interests; notice to recipients.--
``(i) Interests in land.--A trust or restricted
interest in land may be renounced or disclaimed only in
favor of--
``(I) an eligible heir;
``(II) any person who would have been eligible to
be a devisee of the interest in question pursuant to
subsection (b)(1)(A) (but only in cases where the
renouncing person is a devisee of the interest under a
valid will); or
``(III) the Indian tribe with jurisdiction over the
interest in question;
and the interest so renounced shall pass to its recipient
in trust or restricted status.
``(ii) Trust personalty.--An interest in trust
personalty may be renounced or disclaimed in favor of any
person who would be eligible to be a devisee of such an
interest under subsection (b)(3) and shall pass to the
recipient in accordance with the provisions of that
subsection.
``(iii) Unauthorized renunciations and disclaimers.--
Unless renounced or disclaimed in favor of a person or
Indian tribe eligible to receive the interest in accordance
with the provisions of this subparagraph, a renounced or
disclaimed interest shall pass as if the renunciation or
disclaimer had not been made.
``(C) Acceptance of interest.--A renunciation or disclaimer
of an interest filed in accordance with this paragraph shall be
considered accepted when implemented in a final order by a
decisionmaker, and shall thereafter be irrevocable. No
renunciation or disclaimer of an interest shall be included in
such order unless the recipient of the interest has been given
notice of the renunciation or disclaimer and has not refused to
accept the interest. All disclaimers and renunciations filed
and implemented in probate orders made effective prior to the
date of enactment of the American Indian Probate Reform Act of
2004 are hereby ratified.
``(D) Rule of construction.--Nothing in this paragraph
shall be construed to allow the renunciation of an interest
that is subject to the provisions of section 207(a)(2)(D) (25
U.S.C. 2206(a)(2)(D)) in favor of more than 1 person.
``(9) Consolidation agreements.--
``(A) In general.--During the pendency of probate, the
decisionmaker is authorized to approve written consolidation
agreements effecting exchanges or gifts voluntarily entered
into between the decedent's eligible heirs or devisees, to
consolidate interests in any tract of land included in the
decedent's trust inventory. Such agreements may provide for the
conveyance of interests already owned by such heirs or devisees
in such tracts, without having to comply with the Secretary's
rules and requirements otherwise applicable to conveyances by
deed of trust or restricted interests in land.
``(B) Effective.--An agreement approved under subparagraph
(A) shall be considered final when implemented in an order by a
decisionmaker. The final probate order shall direct any changes
necessary to the Secretary's land records, to reflect and
implement the terms of the approved agreement.
``(C) Effect on purchase option at probate.--Any interest
in trust or restricted land that is subject to a consolidation
agreement under this paragraph or section 207(e) (25 U.S.C.
2206(e)) shall not be available for purchase under section
207(p) (25 U.S.C. 2206(p)) unless the decisionmaker determines
that the agreement should not be approved.''.
SEC. 4. PARTITION OF HIGHLY FRACTIONATED INDIAN LANDS.
Section 205 of the Indian Land Consolidation Act (25 U.S.C. 2204)
(as amended by section 6(a)(2)) is amended by adding at the end the
following:
``(d) Partition of Highly Fractionated Indian Lands.--
``(1) Applicability.--This subsection shall be applicable only
to parcels of land (including surface and subsurface interests,
except with respect to a subsurface interest that has been severed
from the surface interest, in which case this subsection shall
apply only to the surface interest) which the Secretary has
determined, pursuant to paragraph (2)(B), to be parcels of highly
fractionated Indian land.
``(2) Requirements.--Each partition action under this
subsection shall be conducted by the Secretary in accordance with
the following requirements:
``(A) Application.--Upon receipt of any payment or bond
required under subparagraph (B), the Secretary shall commence a
process for partitioning a parcel of land by sale in accordance
with the provisions of this subsection upon receipt of an
application by--
``(i) the Indian tribe with jurisdiction over the
subject land that owns an undivided interest in the parcel
of land; or
``(ii) any person owning an undivided interest in the
parcel of land who is eligible to bid at the sale of the
parcel pursuant to subclause (II), (III), or (IV) of
subparagraph (I)(i);
provided that no such application shall be valid or considered
if it is received by the Secretary prior to the date that is 1
year after the date on which notice is published pursuant to
section 8(a)(4) of the American Indian Probate Reform Act of
2004.
``(B) Costs of serving notice and publication.--The costs
of serving and publishing notice under subparagraph (F) shall
be borne by the applicant. Upon receiving written notice from
the Secretary, the applicant must pay to the Secretary an
amount determined by the Secretary to be the estimated costs of
such service of notice and publication, or furnish a sufficient
bond for such estimated costs within the time stated in the
notice, failing which, unless an extension is granted by the
Secretary, the Secretary shall not be required to commence the
partition process under subparagraph (A) and may deny the
application. The Secretary shall have the discretion and
authority in any case to waive either the payment or the bond
(or any portion of such payment or bond) otherwise required by
this subparagraph, upon making a determination that such waiver
will further the policies of this Act.
``(C) Determination.--Upon receipt of an application
pursuant to subparagraph (A), the Secretary shall determine
whether the subject parcel meets the requirements set forth in
section 202(6) (25 U.S.C. 2201(6)) to be classified as a parcel
of highly fractionated Indian land.
``(D) Consent requirements.--
``(i) In general.--A parcel of land may be partitioned
under this subsection only if the applicant obtains the
written consent of--
``(I) the Indian tribe with jurisdiction over the
subject land if such Indian tribe owns an undivided
interest in the parcel;
``(II) any owner who, for the 3-year period
immediately preceding the date on which the Secretary
receives the application, has
``(aa) continuously maintained a bona fide
residence on the parcel; or
``(bb) operated a bona fide farm, ranch, or
other business on the parcel; and
``(III) the owners (including parents of minor
owners and legal guardians of incompetent owners) of at
least 50 percent of the undivided interests in the
parcel, but only in cases where the Secretary
determines that, based on the final appraisal prepared
pursuant to subparagraph (F), any 1 owner's total
undivided interest in the parcel (not including the
interest of an Indian tribe or that of the owner
requesting the partition) has a value in excess of
$1,500.
Any consent required by this clause must be in writing and
acknowledged before a notary public (or other official
authorized to make acknowledgments), and shall be approved
by Secretary unless the Secretary has reason to believe
that the consent was obtained as a result of fraud or undue
influence.
``(ii) Consent by the secretary on behalf of certain
individuals.--For the purposes of clause (i)(III), the
Secretary may consent on behalf of--
``(I) undetermined heirs of trust or restricted
interests and owners of such interests who are minors
and legal incompetents having no parents or legal
guardian; and
``(II) missing owners or owners of trust or
restricted interests whose whereabouts are unknown, but
only after a search for such owners has been completed
in accordance with the provisions of this subsection.
``(E) Appraisal.--After the Secretary has determined that
the subject parcel is a parcel of highly fractionated Indian
land pursuant to subparagraph (C), the Secretary shall cause to
be made, in accordance with the provisions of this Act for
establishing fair market value, an appraisal of the fair market
value of the subject parcel.
``(F) Notice to owners on completion of appraisal.--Upon
completion of the appraisal, the Secretary shall give notice of
the requested partition and appraisal to all owners of
undivided interests in the parcel, in accordance with
principles of due process. Such notice shall include the
following requirements:
``(i) Written notice.--The Secretary shall attempt to
give each owner written notice of the partition action
stating the following:
``(I) That a proceeding to partition the parcel of
land by sale has been commenced.
``(II) The legal description of the subject parcel.
``(III) The owner's ownership interest in the
subject parcel as evidenced by the Secretary's records
as of the date that owners are determined in accordance
with clause (ii).
``(IV) The results of the appraisal.
``(V) The owner's right to receive a copy of the
appraisal upon written request.
``(VI) The owner's right to comment on or object to
the proposed partition and the appraisal.
``(VII) That the owner must timely comment on or
object in writing to the proposed partition or the
appraisal, in order to receive notice of approval of
the appraisal and right to appeal.
``(VIII) The date by which the owner's written
comments or objections must be received, which shall
not be less than 90 days after the date that the notice
is mailed under this clause or last published under
clause (ii)(II).
``(IX) The address for requesting copies of the
appraisal and for submitting written comments or
objections.
``(X) The name and telephone number of the official
to be contacted for purposes of obtaining information
regarding the proceeding, including the time and date
of the auction of the land or the date for submitting
sealed bids.
``(XI) Any other information the Secretary deems to
be appropriate.
``(ii) Manner of service.--
``(I) Service by certified mail.--The Secretary
shall use due diligence to provide all owners of
interests in the subject parcel, as evidenced by the
Secretary's records at the time of the determination
under subparagraph (C), with actual notice of the
partition proceedings by mailing a copy of the written
notice described in clause (i) by certified mail,
restricted delivery, to each such owner at the owner's
last known address. For purposes of this subsection,
owners shall be determined from the Secretary's land
title records as of the date of the determination under
subparagraph (C) or a date that is not more than 90
days prior to the date of mailing under this clause,
whichever is later. In the event the written notice to
an owner is returned undelivered, the Secretary shall
attempt to obtain a current address for such owner by
conducting a reasonable search (including a reasonable
search of records maintained by local, State, Federal
and tribal governments and agencies) and by inquiring
with the Indian tribe with jurisdiction over the
subject parcel, and, if different from that tribe, the
Indian tribe of which the owner is a member, and, if
successful in locating any such owner, send written
notice by certified mail in accordance with this
subclause.
``(II) Notice by publication.--The Secretary shall
give notice by publication of the partition proceedings
to all owners that the Secretary was unable to serve
pursuant to subclause (I), and to unknown heirs and
assigns by--
``(aa) publishing the notice described in
clause (i) at least 2 times in a newspaper of
general circulation in the county or counties where
the subject parcel of land is located or, if there
is an Indian tribe with jurisdiction over the
parcel of land and that tribe publishes a tribal
newspaper or newsletter at least once every month,
1 time in such newspaper of general circulation and
1 time in such tribal newspaper or newsletter;
``(bb) posting such notice in a conspicuous
place in the tribal headquarters or administration
building (or such other tribal building determined
by the Secretary to be most appropriate for giving
public notice) of the Indian tribe with
jurisdiction over the parcel of land, if any; and
``(cc) in addition to the foregoing, in the
Secretary's discretion, publishing notice in any
other place or means that the Secretary determines
to be appropriate.
``(G) Review of comments on appraisal.--
``(i) In general.--After reviewing and considering
comments or information timely submitted by any owner of an
interest in the parcel in response to the notice required
under subparagraph (F), the Secretary may, consistent with
the provisions of this Act for establishing fair market
value--
``(I) order a new appraisal; or
``(II) approve the appraisal;
provided that if the Secretary orders a new appraisal under
subclause (I), notice of the new appraisal shall be given as
specified in clause (ii).
``(ii) Notice.--Notice shall be given--
``(I) in accordance with subparagraph (H), where
the new appraisal results in a higher valuation of the
land; or
``(II) in accordance with subparagraph (F)(ii),
where the new appraisal results in a lower valuation of
the land.
``(H) Notice to owners of approval of appraisal and right
to appeal.--Upon making the determination under subparagraph
(G), the Secretary shall provide to the Indian tribe with
jurisdiction over the subject land and to all persons who
submitted written comments on or objections to the proposed
partition or appraisal, a written notice to be served on such
tribe and persons by certified mail. Such notice shall state--
``(i) the results of the appraisal;
``(ii) that the owner has the right to review a copy of
the appraisal upon request;
``(iii) that the land will be sold for not less than
the appraised value, subject to the consent requirements
under paragraph (2)(D);
``(iv) the time of the sale or for submitting bids
under subparagraph (I);
``(v) that the owner has the right, under the
Secretary's regulations governing administrative appeals,
to pursue an administrative appeal from--
``(I) the determination that the land may be
partitioned by sale under the provisions of this
section; and
``(II) the Secretary's order approving the
appraisal;
``(vi) the date by which an administrative appeal must
be taken, a citation to the provisions of the Secretary's
regulations that will govern the owner's appeal, and any
other information required by such regulations to be given
to parties affected by adverse decisions of the Secretary;
``(vii) in cases where the Secretary determines that
any person's undivided trust or restricted interest in the
parcel exceeds $1,500 pursuant to paragraph (2)(D)(iii),
that the Secretary has authority to consent to the
partition on behalf of undetermined heirs of trust or
restricted interests in the parcel and owners of such
interests whose whereabouts are unknown; and
``(viii) any other information the Secretary deems to
be appropriate.
``(I) Sale to eligible purchaser.--
``(i) In general.--Subject to clauses (ii) and (iii)
and the consent requirements of paragraph (2)(D), the
Secretary shall, after providing notice to owners under
subparagraph (H), including the time and place of sale or
for receiving sealed bids, at public auction or by sealed
bid (whichever of such methods of sale the Secretary
determines to be more appropriate under the circumstances)
sell the parcel of land by competitive bid for not less
than the final appraised fair market value to the highest
bidder from among the following eligible bidders:
``(I) The Indian tribe, if any, with jurisdiction
over the trust or restricted interests in the parcel
being sold.
``(II) Any person who is a member, or is eligible
to be a member, of the Indian tribe described in
subclause (I).
``(III) Any person who is a member, or is eligible
to be a member, of an Indian tribe but not of the tribe
described in subclause (I), but only if such person
already owns an undivided interest in the parcel at the
time of sale.
``(IV) Any lineal descendent of the original
allottee of the parcel who is a member or is eligible
to be a member of an Indian tribe or, with respect to a
parcel located in the State of California that is not
within an Indian tribe's reservation or not otherwise
subject to the jurisdiction of an Indian tribe, who is
a member, or eligible to be a member, of an Indian
tribe or owns a trust or restricted interest in the
parcel.
``(ii) Right to match highest bid.--If the highest
bidder is a person who is only eligible to bid under clause
(i)(III), the Indian tribe that has jurisdiction over the
parcel, if any, shall have the right to match the highest
bid and acquire the parcel, but only if--
``(I) prior to the date of the sale, the governing
body of such tribe has adopted a tribal law or
resolution reserving its right to match the bids of
such nonmember bidders in partition sales under this
subsection and delivered a copy of such law or
resolution to the Secretary; and
``(II) the parcel is not acquired under clause
(iii).
``(iii) Right to purchase.--Any person who is a member,
or eligible to be a member, of the Indian tribe with
jurisdiction over the trust or restricted interests in the
parcel being sold and is, as of the time of sale under this
subparagraph, the owner of the largest undivided interest
in the parcel shall have a right to purchase the parcel by
tendering to the Secretary an amount equal to the highest
sufficient bid submitted at the sale, less that amount of
the bid attributable to such owner's share, but only if--
``(I) the owner submitted a sufficient bid at the
sale;
``(II) the owner's total undivided interest in the
parcel immediately prior to the sale was--
``(aa) greater than the undivided interest held
by any other co-owners, except where there are 2 or
more co-owners whose interests are of equal size
but larger than the interests of all other co-
owners and such owners of the largest interests
have agreed in writing that 1 of them may exercise
the right of purchase under this clause; and
``(bb) equal to or greater than 20 percent of
the entire undivided ownership of the parcel;
``(III) within 3 days following the date of the
auction or for receiving sealed bids, and in accordance
with the regulations adopted to implement this section,
the owner delivers to the Secretary a written notice of
intent to exercise the owner's rights under this
clause; and
``(IV) such owner tenders the amount of the
purchase price required under this clause--
``(aa) not less than 30 days after the date of
the auction or time for receiving sealed bids; and
``(bb) in accordance with any requirements of
the regulations promulgated to implement this
section.
``(iv) Interest acquired.--A purchaser of a parcel of
land under this subparagraph shall acquire title to the
parcel in trust or restricted status, free and clear of any
and all claims of title or ownership of all persons or
entities (not including the United States) owning or
claiming to own an interest in such parcel prior to the
time of sale.
``(J) Proceeds of sale.--
``(i) Subject to clauses (ii) and (iii), the Secretary
shall distribute the proceeds of sale of a parcel of land
under the provisions of this section to the owners of
interests in such parcel in proportion to their respective
ownership interests.
``(ii) Proceeds attributable to the sale of trust or
restricted interests shall be maintained in accounts as
trust personalty.
``(iii) Proceeds attributable to the sale of interests
of owners whose whereabouts are unknown, of undetermined
heirs, and of other persons whose ownership interests have
not been recorded shall be held by the Secretary until such
owners, heirs, or other persons have been determined, at
which time such proceeds shall be distributed in accordance
with clauses (i) and (ii).
``(K) Lack of bids or consent.--
``(i) Lack of bids.--If no bidder described in
subparagraph (I) presents a bid that equals or exceeds the
final appraised value, the Secretary may either--
``(I) purchase the parcel of land for its appraised
fair market value on behalf of the Indian tribe with
jurisdiction over the land, subject to the lien and
procedures provided under section 214(b) (25 U.S.C.
2213(b)); or
``(II) terminate the partition process.
``(ii) Lack of consent.--If an applicant fails to
obtain any applicable consent required under the provisions
of subparagraph (D) by the date established by the
Secretary prior to the proposed sale, the Secretary may
either extend the time for obtaining any such consent or
deny the request for partition.
``(3) Enforcement.--
``(A) In general.--If a partition is approved under this
subsection and an owner of an interest in the parcel of land
refuses to surrender possession in accordance with the
partition decision, or refuses to execute any conveyance
necessary to implement the partition, then any affected owner
or the United States may--
``(i) commence a civil action in the United States
district court for the district in which the parcel of land
is located; and
``(ii) request that the court issue an order for
ejectment or any other appropriate remedy necessary for the
partition of the land by sale.
``(B) Federal role.--With respect to any civil action
brought under subparagraph (A)--
``(i) the United States--
``(I) shall receive notice of the civil action; and
``(II) may be a party to the civil action; and
``(ii) the civil action shall not be dismissed, and no
relief requested shall be denied, on the ground that the
civil action is against the United States or that the
United States is a necessary and indispensable party.
``(4) Grants and loans.--The Secretary may provide grants and
low interest loans to successful bidders at sales authorized by
this subsection, provided that--
``(A) the total amount of such assistance in any such sale
shall not exceed 20 percent of the appraised value of the
parcel of land sold; and
``(B) the grant or loan funds provided shall only be
applied toward the purchase price of the parcel of land sold.
``(5) Regulations.--The Secretary is authorized to adopt such
regulations as may be necessary to implement the provisions of this
subsection. Such regulations shall include provisions for giving
notice of sales to prospective purchasers eligible to submit bids
at sales conducted under paragraph (2)(I).''.
SEC. 5. OWNER-MANAGED INTERESTS.
The Indian Land Consolidation Act (25 U.S.C. 2201 et seq.) is
amended by adding at the end the following:
``SEC. 221. OWNER-MANAGED INTERESTS.
``(a) Purpose.--The purpose of this section is to provide a means
for the co-owners of trust or restricted interests in a parcel of land
to enter into surface leases of such parcel for certain purposes
without approval of the Secretary.
``(b) Mineral Interests.--Nothing in this section shall be
construed to limit or otherwise affect the application of any Federal
law requiring the Secretary to approve mineral leases or other
agreements for the development of the mineral interest in trust or
restricted land.
``(c) Owner Management.--
``(1) In general.--Notwithstanding any provision of Federal law
requiring the Secretary to approve individual Indian leases of
individual Indian trust or restricted land, where the owners of all
of the undivided trust or restricted interests in a parcel of land
have submitted applications to the Secretary pursuant to subsection
(a), and the Secretary has approved such applications under
subsection (d), such owners may, without further approval by the
Secretary, enter into a lease of the parcel for agricultural
purposes for a term not to exceed 10 years.
``(2) Rule of construction.--No such lease shall be effective
until it has been executed by the owners of all undivided trust or
restricted interests in the parcel.
``(d) Approval of Applications for Owner Management.--
``(1) In general.--Subject to the provisions of paragraph (2),
the Secretary shall approve an application for owner management
submitted by a qualified applicant pursuant to this section unless
the Secretary has reason to believe that the applicant is
submitting the application as the result of fraud or undue
influence. No such application shall be valid or considered if it
is received by the Secretary prior to the date that is 1 year after
the date on which notice is published pursuant to section 8(a)(4)
of the American Indian Probate Reform Act of 2004.
``(2) Commencement of owner-managed status.--Notwithstanding
the approval of 1 or more applications pursuant to paragraph (1),
no trust or restricted interest in a parcel of land shall acquire
owner-managed status until applications for all of the trust or
restricted interests in such parcel of land have been submitted to
and approved by the Secretary pursuant to this section.
``(e) Validity of Leases.--No lease of trust or restricted
interests in a parcel of land that is owner-managed under this section
shall be valid or enforceable against the owners of such interests, or
against the land, the interest or the United States, unless such
lease--
``(1) is consistent with, and entered into in accordance with,
the requirements of this section; or
``(2) has been approved by the Secretary in accordance with
other Federal laws applicable to the leasing of trust or restricted
land.
``(f) Lease Revenues.--The Secretary shall not be responsible for
the collection of, or accounting for, any lease revenues accruing to
any interests under a lease authorized by subsection (e), so long as
such interest is in owner-managed status under the provisions of this
section.
``(g) Jurisdiction.--
``(1) Jurisdiction unaffected by status.--The Indian tribe with
jurisdiction over an interest in trust or restricted land that
becomes owner-managed pursuant to this section shall continue to
have jurisdiction over the interest to the same extent and in all
respects that such tribe had prior to the interest acquiring owner-
managed status.
``(2) Persons using land.--Any person holding, leasing, or
otherwise using such interest in land shall be considered to
consent to the jurisdiction of the Indian tribe referred to in
paragraph (1), including such tribe's laws and regulations, if any,
relating to the use, and any effects associated with the use, of
the interest.
``(h) Continuation of Owner-Managed Status; Revocation.--
``(1) In general.--Subject to the provisions of paragraph (2),
after the applications of the owners of all of the trust or
restricted interests in a parcel of land have been approved by the
Secretary pursuant to subsection (d), each such interest shall
continue in owner-managed status under this section notwithstanding
any subsequent conveyance of the interest in trust or restricted
status to another person or the subsequent descent of the interest
in trust or restricted status by testate or intestate succession to
1 or more heirs.
``(2) Revocation.--Owner-managed status of an interest may be
revoked upon written request of the owners (including the parents
or legal guardians of minors or incompetent owners) of all trust or
restricted interests in the parcel, submitted to the Secretary in
accordance with regulations adopted under subsection (l). The
revocation shall become effective as of the date on which the last
of all such requests has been delivered to the Secretary.
``(3) Effect of revocation.--Revocation of owner-managed status
under paragraph (2) shall not affect the validity of any lease made
in accordance with the provisions of this section prior to the
effective date of the revocation, provided that, after such
revocation becomes effective, the Secretary shall be responsible
for the collection of, and accounting for, all future lease
revenues accruing to the trust or restricted interests in the
parcel from and after such effective date.
``(i) Defined Terms.--
``(1) For purposes of subsection (d)(1), the term `qualified
applicant' means--
``(A) a person over the age of 18 who owns a trust or
restricted interest in a parcel of land; and
``(B) the parent or legal guardian of a minor or
incompetent person who owns a trust or restricted interest in a
parcel of land.
``(2) For purposes of this section, the term `owner-managed
status' means, with respect to a trust or restricted interest,
that--
``(A) the interest is a trust or restricted interest in a
parcel of land for which applications covering all trust or
restricted interests in such parcel have been submitted to and
approved by the Secretary pursuant to subsection (d);
``(B) the interest may be leased without approval of the
Secretary pursuant to, and in a manner that is consistent with,
the requirements of this section; and
``(C) no revocation has occurred under subsection (h)(2).
``(j) Secretarial Approval of Other Transactions.--Except with
respect to the specific lease transaction described in paragraph (1) of
subsection (c), interests that acquire owner-managed status under the
provisions of this section shall continue to be subject to all Federal
laws requiring the Secretary to approve transactions involving trust or
restricted land (including leases with terms of a duration in excess of
10 years) that would otherwise apply to such interests if the interests
had not acquired owner-managed status under this section.
``(k) Effect of Section.--Subject to subsections (c), (f), and (h),
nothing in this section diminishes or otherwise affects any authority
or responsibility of the Secretary with respect to an interest in trust
or restricted land.''.
SEC. 6. ADDITIONAL AMENDMENTS.
(a) In General.--The Indian Land Consolidation Act (25 U.S.C. 2201
et seq.) is amended--
(1) in the second sentence of section 205(a) (25 U.S.C.
2204(a)), by striking ``over 50 per centum of the undivided
interests'' and inserting ``undivided interests equal to at least
50 percent of the undivided interest'';
(2) in section 207 (25 U.S.C. 2206), by adding a subsection at
the end as follows:
``(p) Purchase Option at Probate.--
``(1) In general.--The trust or restricted interests in a
parcel of land in the decedent's estate may be purchased at probate
in accordance with the provisions of this subsection.
``(2) Sale of interest at fair market value.--Subject to
paragraph (3), the Secretary is authorized to sell trust or
restricted interests in land subject to this subsection, including
the interest that a surviving spouse would otherwise receive under
section 207(a)(2) (A) or (D), at no less than fair market value, as
determined in accordance with the provisions of this Act, to any of
the following eligible purchasers:
``(A) Any other eligible heir taking an interest in the
same parcel of land by intestate succession or the decedent's
other devisees of interests in the same parcel who are eligible
to receive a devise under section 207(b)(1)(A).
``(B) All persons who own undivided trust or restricted
interests in the same parcel of land involved in the probate
proceeding.
``(C) The Indian tribe with jurisdiction over the interest,
or the Secretary on behalf of such Indian tribe.
``(3) Request to purchase; auction; consent requirements.--No
sale of an interest in probate shall occur under this subsection
unless--
``(A) an eligible purchaser described in paragraph (2)
submits a written request to purchase prior to the distribution
of the interest to heirs or devisees of the decedent and in
accordance with any regulations of the Secretary; and
``(B) except as provided in paragraph (5), the heirs or
devisees of such interest, and the decedent's surviving spouse,
if any, receiving a life estate under section 207(a)(2) (A) or
(D) consent to the sale.
If the Secretary receives more than 1 request to purchase the same
interest, the Secretary shall sell the interest by public auction
or sealed bid (as determined by the Secretary) at not less than the
appraised fair market value to the eligible purchaser submitting
the highest bid.
``(4) Appraisal and notice.--Prior to the sale of an interest
pursuant to this subsection, the Secretary shall--
``(A) appraise the interest at its fair market value in
accordance with this Act;
``(B) provide eligible heirs, other devisees, and the
Indian tribe with jurisdiction over the interest with written
notice, sent by first class mail, that the interest is
available for purchase in accordance with this subsection; and
``(C) if the Secretary receives more than 1 request to
purchase the interest by a person described in subparagraph
(B), provide notice of the manner (auction or sealed bid), time
and place of the sale, a description, and the appraised fair
market value, of the interest to be sold--
``(i) to the heirs or other devisees and the Indian
tribe with jurisdiction over the interest, by first class
mail; and
``(ii) to all other eligible purchasers, by posting
written notice in at least 5 conspicuous places in the
vicinity of the place of hearing.
``(5) Small undivided interests in indian lands.--
``(A) In general.--Subject to subparagraph (B), the consent
of a person who is an heir otherwise required under paragraph
(3)(B) shall not be required for the auction and sale of an
interest at probate under this subsection if--
``(i) the interest is passing by intestate succession;
and
``(ii) prior to the auction the Secretary determines in
the probate proceeding that the interest passing to such
heir represents less than 5 percent of the entire undivided
ownership of the parcel of land as evidenced by the
Secretary's records as of the time the determination is
made.
``(B) Exception.--Notwithstanding subparagraph (A), the
consent of such heir shall be required for the sale at probate
of the heir's interest if, at the time of the decedent's death,
the heir was residing on the parcel of land of which the
interest to be sold was a part.
``(6) Distribution of proceeds.--Proceeds from the sale of
interests under this subsection shall be distributed to the heirs,
devisees, or spouse whose interest was sold in accordance with the
values of their respective interests. The proceeds attributable to
an heir or devisee shall be held in an account as trust personalty
if the interest sold would have otherwise passed to the heir or
devisee in trust or restricted status.'';
(3) in section 206 (25 U.S.C. 2205)--
(A) in subsection (a), by striking paragraph (3) and
inserting the following:
``(3) Tribal probate codes.--Except as provided in any
applicable Federal law, the Secretary shall not approve a tribal
probate code, or an amendment to such a code, that prohibits the
devise of an interest in trust or restricted land to--
``(A) an Indian lineal descendant of the original allottee;
or
``(B) an Indian who is not a member of the Indian tribe
with jurisdiction over such an interest;
unless the code provides for--
``(i) the renouncing of interests to eligible devisees
in accordance with the code;
``(ii) the opportunity for a devisee who is the spouse
or lineal descendant of a testator to reserve a life estate
without regard to waste; and
``(iii) payment of fair market value in the manner
prescribed under subsection (c)(2).''; and
(B) in subsection (c)--
(i) in paragraph (1)--
(I) by striking the paragraph heading and inserting
the following:
``(1) Authority.--
``(A) In general.--'';
(II) in the first sentence of subparagraph (A) (as
redesignated by clause (i)), by striking ``section
207(a)(6)(A) of this title'' and inserting ``section
207(b)(2)(A)(ii) of this title''; and
(III) by striking the last sentence and inserting
the following:
``(B) Transfer.--The Secretary shall transfer payments
received under subparagraph (A) to any person or persons who
would have received an interest in land if the interest had not
been acquired by the Indian tribe in accordance with this
paragraph.''; and
(ii) in paragraph (2)--
(I) in subparagraph (A)--
(aa) by striking the subparagraph heading and
all that follows through ``Paragraph (1) shall not
apply'' and inserting the following:
``(A) Inapplicability to certain interests.--
``(i) In general.--Paragraph (1) shall not apply'';
(bb) in clause (i) (as redesignated by item
(aa)), by striking ``if, while'' and inserting the
following: ``if--
``(I) while'';
(cc) by striking the period at the end and
inserting ``; or''; and
(dd) by adding at the end the following:
``(II)(aa) the interest is part of a family farm
that is devised to a member of the family of the
decedent; and
``(bb) the devisee agrees that the Indian tribe
with jurisdiction over the land will have the
opportunity to acquire the interest for fair market
value if the interest is offered for sale to a person
or entity that is not a member of the family of the
owner of the land.
``(ii) Recording of interest.--On request by the Indian
tribe described in clause (i)(II)(bb), a restriction
relating to the acquisition by the Indian tribe of an
interest in a family farm involved shall be recorded as
part of the deed relating to the interest involved.
``(iii) Mortgage and foreclosure.--Nothing in clause
(i)(II) limits--
``(I) the ability of an owner of land to which that
clause applies to mortgage the land; or
``(II) the right of the entity holding such a
mortgage to foreclose or otherwise enforce such a
mortgage agreement in accordance with applicable law.
``(iv) Definition of `member of the family'.--In this
paragraph, the term `member of the family', with respect to
a decedent or landowner, means--
``(I) a lineal descendant of a decedent or
landowner;
``(II) a lineal descendant of the grandparent of a
decedent or landowner;
``(III) the spouse of a descendant or landowner
described in subclause (I) or (II); and
``(IV) the spouse of a decedent or landowner.'';
and
(II) in subparagraph (B), by striking
``subparagraph (A)'' and all that follows through
``207(a)(6)(B) of this title'' and inserting
``paragraph (1)'';
(4) in section 207 (25 U.S.C. 2206), by striking subsection
(g);
(5) in section 213 (25 U.S.C. 2212)--
(A) by striking the section heading and inserting the
following:
``SEC. 2212. FRACTIONAL INTEREST ACQUISITION PROGRAM.'';
(B) in subsection (a), by--
(i) adding in paragraph (1) ``or from an heir during
probate in accordance with section 207(p) (25 U.S.C.
2206(p))'' after ``owner,''; and
(ii) striking ``(2) Authority of secretary.--'' and all
that follows through ``the Secretary shall submit'' and
inserting the following:
``(2) Authority of secretary.--The Secretary shall submit'';
and
(iii) by striking ``whether the program to acquire
fractional interests should be extended or altered to make
resources'' and inserting ``how the fractional interest
acquisition program should be enhanced to increase the
resources made'';
(C) in subsection (b), by striking paragraph (4) and
inserting the following:
``(4) shall minimize the administrative costs associated with
the land acquisition program through the use of policies and
procedures designed to accommodate the voluntary sale of interests
under this section, notwithstanding the existence of any otherwise
applicable policy, procedure, or regulation, through the
elimination of duplicate--
``(A) conveyance documents;
``(B) administrative proceedings; and
``(C) transactions.'';
(D) in subsection (c)--
(i) in paragraph (1)--
(I) in subparagraph (A), by striking ``at least 5
percent of the'' and inserting in its place ``an'';
(II) in subparagraph (A), by inserting ``in such
parcel'' following ``the Secretary shall convey an
interest'';
(III) in subparagraph (A), by striking ``landowner
upon payment'' and all that follows and inserting the
following: ``landowner--
``(i) on payment by the Indian landowner of the amount
paid for the interest by the Secretary; or
``(ii) if--
``(I) the Indian referred to in this subparagraph
provides assurances that the purchase price will be
paid by pledging revenue from any source, including
trust resources; and
``(II) the Secretary determines that the purchase
price will be paid in a timely and efficient manner.'';
and
(IV) in subparagraph (B), by inserting before the
period at the end the following: ``unless the interest
is subject to a foreclosure of a mortgage in accordance
with the Act of March 29, 1956 (25 U.S.C. 483a)''; and
(ii) in paragraph (3), by striking ``10 percent or more
of the undivided interests'' and inserting ``an undivided
interest''; and
(E) by adding at the end of the section:
``(d) Authorization of Appropriations.--There is authorized to be
appropriated to carry out this section $75,000,000 for fiscal year
2005, $95,000,000 for fiscal year 2006, and $145,000,000 for each of
fiscal years 2007 through 2010.'';
(6) in section 214 (25 U.S.C. 2213), by striking subsection (b)
and inserting the following:
``(b) Application of Revenue From Acquired Interests to Land
Consolidation Program.--
``(1) In general.--The Secretary shall have a lien on any
revenue accruing to an interest described in subsection (a) until
the Secretary provides for the removal of the lien under paragraph
(3), (4), or (5).
``(2) Requirements.--
``(A) In general.--Until the Secretary removes a lien from
an interest in land under paragraph (1)--
``(i) 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;
and
``(ii) any revenue derived from any interest acquired
by the Secretary in accordance with section 213 shall be
deposited in the fund created under section 216.
``(B) Approval of transactions.--Notwithstanding section 16
of the Act of June 18, 1934 (commonly known as the `Indian
Reorganization Act') (25 U.S.C. 476), or any other provision of
law, until the Secretary removes a lien from an interest in
land under paragraph (1), the Secretary may approve a
transaction covered under this section on behalf of an Indian
tribe.
``(3) Removal of liens after findings.--The Secretary may
remove a lien referred to in paragraph (1) if the Secretary makes a
finding that--
``(A) the costs of administering the interest from which
revenue accrues under the lien will equal or exceed the
projected revenues for the parcel of land involved;
``(B) in the discretion of the Secretary, it will take an
unreasonable period of time for the parcel of land to generate
revenue that equals the purchase price paid for the interest;
or
``(C) a subsequent decrease in the value of land or
commodities associated with the parcel of 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.
``(4) Removal of liens upon payment into the acquisition
fund.--The Secretary shall remove a lien referred to in paragraph
(1) upon payment of an amount equal to the purchase price of that
interest in land into the Acquisition Fund created under section
2215 of this title, except where the tribe with jurisdiction over
such interest in land authorizes the Secretary to continue the lien
in order to generate additional acquisition funds.
``(5) Other removal of liens.--The Secretary may, in
consultation with tribal governments and other entities described
in section 213(b)(3), periodically remove liens referred to in
paragraph (1) from interests in land acquired by the Secretary.'';
(7) in section 215 (25 U.S.C. 2214), in the last sentence, by
striking ``section 2212 of this title'' and inserting ``this Act'';
(8) in section 216 (25 U.S.C. 2215)--
(A) in subsection (a), by striking paragraph (2) and
inserting the following:
``(2) collect all revenues received from the lease, permit, or
sale of resources from interests acquired under section 213 or paid
by Indian landowners under section 213.''; and
(B) in subsection (b)--
(i) in paragraph (1)--
(I) in the matter preceding subparagraph (A), by
striking ``Subject to paragraph (2), all'' and
inserting ``All'';
(II) in subparagraph (A), by striking ``and'' at
the end;
(III) in subparagraph (B), by striking the period
at the end and inserting ``; and''; and
(IV) by adding at the end the following:
``(C) be used to acquire undivided interests on the
reservation from which the income was derived.''; and
(ii) by striking paragraph (2) and inserting the
following:
``(2) Use of funds.--The Secretary may use the revenue
deposited in the Acquisition Fund under paragraph (1) to acquire
some or all of the undivided interests in any parcels of land in
accordance with section 205.'';
(9) in section 217 (25 U.S.C. 2216)--
(A) in subsection (b)(1), by striking subparagraph (B) and
inserting a new subparagraph (B) as follows:
``(B) Waiver of requirement.--The requirement for an
estimate of value under subparagraph (A) may be waived in
writing by an owner of a trust or restricted interest in land
either selling, exchanging, or conveying by gift deed for no or
nominal consideration such interest--
``(i) to an Indian person who is the owner's spouse,
brother, sister, lineal ancestor, lineal descendant, or
collateral heir; or
``(ii) to an Indian co-owner or to the tribe with
jurisdiction over the subject parcel of land, where the
grantor owns a fractional interest that represents 5
percent or less of the parcel.'';
(B) in subsection (e), by striking the matter preceding
paragraph (1), and inserting ``Notwithstanding any other
provision of law, the names and mailing addresses of the owners
of any interest in trust or restricted lands, and information
on the location of the parcel and the percentage of undivided
interest owned by each individual shall, upon written request,
be made available to'';
(C) in subsection (e)(1), by striking ``Indian'';
(D) in subsection (e)(3), by striking ``prospective
applicants for the leasing, use, or consolidation of'' and
inserting ``any person that is leasing, using, or
consolidating, or is applying to lease, use, or consolidate,'';
and
(E) by striking subsection (f) and inserting the following:
``(f) Purchase of Land by Indian Tribe.--
``(1) In general.--Except as provided in paragraph (2), before
the Secretary approves an application to terminate the trust status
or remove the restrictions on alienation from a parcel of, or
interest in, trust or restricted land, the Indian tribe with
jurisdiction over the parcel shall have the opportunity--
``(A) to match any offer contained in the application; or
``(B) in a case in which there is no purchase price
offered, to acquire the interest in the parcel by paying the
fair market value of the interest.
``(2) Exception for family farms.--
``(A) In general.--Paragraph (1) shall not apply to a
parcel of, or interest in, trust or restricted land that is
part of a family farm that is conveyed to a member of the
family of a landowner (as defined in section 206(c)(2)(A)(iv))
if the conveyance requires that in the event that the parcel or
interest is offered for sale to an entity or person that is not
a member of the family of the landowner, the Indian tribe with
jurisdiction over the land shall be afforded the opportunity to
purchase the interest pursuant to paragraph (1).
``(B) Applicability of other provision.--Section
206(c)(2)(A) shall apply with respect to the recording and
mortgaging of any trust or restricted land referred to in
subparagraph (A).'';
(10) in section 219(b)(1)(A) (25 U.S.C. 2218(b)(1)(A)), by
striking ``100'' and inserting ``90''; and
(11) in section 219, by adding at the end of the section:
``(g) Other Laws.--Nothing in this Act shall be construed to
supersede, repeal, or modify any general or specific statute
authorizing the grant or approval of any type of land use transaction
involving fractional interests in trust or restricted land.''.
(b) Definitions.--Section 202 of the Indian Land Consolidation Act
(25 U.S.C. 2201) is amended--
(1) by striking paragraph (2) and inserting the following:
``(2) `Indian' means--
``(A) any person who is a member of any Indian tribe, is
eligible to become a member of any Indian tribe, or is an owner
(as of the date of enactment of the American Indian Probate
Reform Act of 2004) of a trust or restricted interest in land;
``(B) any person meeting the definition of Indian under the
Indian Reorganization Act (25 U.S.C. 479) and the regulations
promulgated thereunder; and
``(C) with respect to the inheritance and ownership of
trust or restricted land in the State of California pursuant to
section 207, any person described in subparagraph (A) or (B) or
any person who owns a trust or restricted interest in a parcel
of such land in that State.'';
(2) by striking paragraph (4) and inserting the following:
``(4) `trust or restricted lands' means lands, title to which
is held by the United States in trust for an Indian tribe or
individual, or which is held by an Indian tribe or individual
subject to a restriction by the United States against alienation;
and `trust or restricted interest in land' or `trust or restricted
interest in a parcel of land' means an interest in land, title to
which is held in trust by the United States for an Indian tribe or
individual, or which is held by an Indian tribe or individual
subject to a restriction by the United States against
alienation.''; and
(3) by adding at the end the following:
``(6) `parcel of highly fractionated Indian land' means a
parcel of land that the Secretary, pursuant to authority under a
provision of this Act, determines to have, as evidenced by the
Secretary's records at the time of the determination--
``(A) 50 or more but less than 100 co-owners of undivided
trust or restricted interests, and no 1 of such co-owners holds
a total undivided trust or restricted interest in the parcel
that is greater than 10 percent of the entire undivided
ownership of the parcel; or
``(B) 100 or more co-owners of undivided trust or
restricted interests;
``(7) `land' means any real property, and includes within its
meaning for purposes of this Act improvements permanently affixed
to real property;
``(8) `person' or `individual' means a natural person;
``(9) `eligible heirs' means, for purposes of section 207 (25
U.S.C. 2206), any of a decedent's children, grandchildren, great
grandchildren, full siblings, half siblings by blood, and parents
who are--
``(A) Indian; or
``(B) lineal descendents within 2 degrees of consanguinity
of an Indian; or
``(C) owners of a trust or restricted interest in a parcel
of land for purposes of inheriting by descent, renunciation, or
consolidation agreement under section 207 (25 U.S.C. 2206),
another trust or restricted interest in such parcel from the
decedent; and
``(10) `without regard to waste' means, with respect to a life
estate interest in land, that the holder of such estate is entitled
to the receipt of all income, including bonuses and royalties, from
such land to the exclusion of the remaindermen.''.
(c) Issuance of Patents.--Section 5 of the Act of February 8, 1887
(25 U.S.C. 348), is amended by striking the second proviso and
inserting the following: ``Provided, That the rules of intestate
succession under the Indian Land Consolidation Act (25 U.S.C. 2201 et
seq.) (including a tribal probate code approved under that Act or
regulations promulgated under that Act) shall apply to that land for
which patents have been executed and delivered:''.
(d) Transfers of Restricted Indian Land.--Section 4 of the Act of
June 18, 1934 (25 U.S.C. 464), is amended in the first proviso by--
(1) striking ``, in accordance with'' and all that follows
through ``or in which the subject matter of the corporation is
located,'';
(2) striking ``, except as provided by the Indian Land
Consolidation Act'' and all that follows through the colon; and
(3) inserting ``in accordance with the Indian Land
Consolidation Act (25 U.S.C. 2201 et seq.) (including a tribal
probate code approved under that Act or regulations promulgated
under that Act):''.
(e) Estate Planning.--
(1) Conduct of activities.--Section 207(f)(1) of the Indian
Land Consolidation Act (25 U.S.C. 2206) is amended by striking
paragraph (1) and inserting the following:
``(1) In general.--
``(A) The activities conducted under this subsection shall
be conducted in accordance with any applicable--
``(i) tribal probate code; or
``(ii) tribal land consolidation plan.
``(B) The Secretary shall provide estate planning
assistance in accordance with this subsection, to the extent
amounts are appropriated for such purpose.''.
(2) Requirements.--Section 207(f)(2) of the Indian Land
Consolidation Act (25 U.S.C. 2206(f)(2)) is amended by striking
``and'' at the end of subparagraph (A), redesignating subparagraph
(B) as subparagraph (D), and adding the following:
``(B) dramatically increase the use of wills and other
methods of devise among Indian landowners;
``(C) substantially reduce the quantity and complexity of
Indian estates that pass intestate through the probate process,
while protecting the rights and interests of Indian landowners;
and''.
(3) Probate code development and legal assistance grants.--
Section 207(f)(3) of the Indian Land Consolidation Act (25 U.S.C.
2206(f)(3)) is amended by striking paragraph (3) and inserting the
following:
``(3) Probate code development and legal assistance grants.--In
carrying out this section, the Secretary may award grants to--
``(A) Indian tribes, for purposes of tribal probate code
development and estate planning services to tribal members;
``(B) organizations that provide legal assistance services
for Indian tribes, Indian organizations, and individual owners
of interests in trust or restricted lands that are qualified as
nonprofit organizations under section 501(c)(3) of the Internal
Revenue Code of 1986 and provide such services pursuant to
Federal poverty guidelines, for purposes of providing civil
legal assistance to such Indian tribes, individual owners, and
Indian organizations for the development of tribal probate
codes, for estate planning services or for other purposes
consistent with the services they provide to Indians and Indian
tribes; and
``(C) in specific areas and reservations where qualified
nonprofit organizations referred to in subparagraph (B) do not
provide such legal assistance to Indian tribes, Indian
organizations, or individual owners of trust or restricted
land, to other providers of such legal assistance;
that submit an application to the Secretary, in such form and
manner as the Secretary may prescribe.
``(4) Authorization for appropriations.--There is authorized to
be appropriated such sums as may be necessary to carry out the
provisions of paragraph (3).''.
(4) Notification to landowners.--Section 207 of the Indian Land
Consolidation Act (25 U.S.C. 2206) is amended by adding at the end
the following:
``(l) Notification to Landowners.--After receiving written request
by any owner of a trust or restricted interest in land, the Secretary
shall provide to such landowner the following information with respect
to each tract of trust or restricted land in which the landowner has an
interest:
``(1) The location of the tract of land involved.
``(2) The identity of each other co-owner of interests in the
parcel of land.
``(3) The percentage of ownership of each owner of an interest
in the tract.
``(m) Pilot Project for the Management of Trust Assets of Indian
Families and Relatives.--
``(1) Development pilot project.--The Secretary shall consult
with tribes, individual landowner organizations, Indian advocacy
organizations, and other interested parties to--
``(A) develop a pilot project for the creation of legal
entities such as private or family trusts, partnerships
corporations, or other organizations to improve, facilitate,
and assist in the efficient management of interests in trust or
restricted lands or funds owned by Indian family members and
relatives; and
``(B) develop proposed rules, regulations, and guidelines
to implement the pilot project, including--
``(i) the criteria for establishing such legal
entities;
``(ii) reporting and other requirements that the
Secretary determines to be appropriate for administering
such entities; and
``(iii) provisions for suspending or revoking the
authority of an entity to engage in activities relating to
the management of trust or restricted assets under the
pilot project in order to protect the interests of the
beneficial owners of such assets.
``(2) Primary purposes; limitation; approval of transactions;
payments by secretary.--
``(A) Purposes.--The primary purpose of any entity
organized under the pilot project shall be to improve,
facilitate, and assist in the management of interests in trust
or restricted land, held by 1 or more persons, in furtherance
of the purposes of this Act.
``(B) Limitation.--The organization or activities of any
entity under the pilot project shall not be construed to
impair, impede, replace, abrogate, or modify in any respect the
trust duties or responsibilities of the Secretary, nor shall
anything in this subsection or in any rules, regulations, or
guidelines developed under this subsection enable any private
or family trustee of trust or restricted interests in land to
exercise any powers over such interests greater than that held
by the Secretary with respect to such interests.
``(C) Secretarial approval of transactions.--Any
transaction involving the lease, use, mortgage or other
disposition of trust or restricted land or other trust assets
administered by or through an entity under the pilot project
shall be subject to approval by the Secretary in accordance
with applicable Federal law.
``(D) Payments.--The Secretary shall have the authority to
make payments of income and revenues derived from trust or
restricted land or other trust assets administered by or
through an entity participating in the pilot project directly
to the entity, in accordance with requirements of the
regulations adopted pursuant to this subsection.
``(3) Limitations on pilot project.--
``(A) Number of organizations.--The number of entities
established under the pilot project authorized by this
subsection shall not exceed 30.
``(B) Regulations required.--No entity shall commence
activities under the pilot project authorized by this
subsection until the Secretary has adopted final rules and
regulations under paragraph (1)(B).
``(4) Report to congress.--Prior to the expiration of the pilot
project provided for under this subsection, the Secretary shall
submit a report to Congress stating--
``(A) a description of the Secretary's consultation with
Indian tribes, individual landowner associations, Indian
advocacy organizations, and other parties consulted with
regarding the development of rules and regulations for the
creation and management of interests in trust and restricted
lands under the pilot project;
``(B) the feasibility of accurately monitoring the
performance of legal entities such as those involved in the
pilot project, and the effectiveness of such entities as
mechanisms to manage and protect trust assets;
``(C) the impact that the use of entities such as those in
the pilot project may have with respect to the accomplishment
of the goals of the Indian Land Consolidation Act (25 U.S.C.
2201 et seq.); and
``(D) any recommendations that the Secretary may have
regarding whether to adopt a permanent program as a management
and consolidation measure for interests in trust or restricted
lands.
``(n) Notice to Heirs.--Prior to holding a hearing to determine the
heirs to trust or restricted property, or making a decision determining
such heirs, the Secretary shall seek to provide actual written notice
of the proceedings to all heirs. Such efforts shall include--
``(1) a search of publicly available records and Federal
records, including telephone and address directories and including
electronic search services or directories;
``(2) an inquiry with family members and co-heirs of the
property;
``(3) an inquiry with the tribal government of which the owner
is a member, and the tribal government with jurisdiction over the
property, if any; and
``(4) if the property is of a value greater than $2,000,
engaging the services of an independent firm to conduct a missing
persons search.
``(o) Missing Heirs.--
``(1) For purposes of this subsection and subsection (m), an
heir may be presumed missing if--
``(A) such heir's whereabouts remain unknown 60 days after
completion of notice efforts under subsection (m); and
``(B) in the proceeding to determine a decedent's heirs,
the Secretary finds that the heir has had no contact with other
heirs of the decedent, if any, or with the Department relating
to trust or restricted land or other trust assets at any time
during the 6-year period preceding the hearing to determine
heirs.
``(2) Before the date for declaring an heir missing, any person
may request an extension of time to locate such heir. The Secretary
shall grant a reasonable extension of time for good cause.
``(3) An heir shall be declared missing only after a review of
the efforts made in the heirship proceeding and a finding has been
made that this subsection has been complied with.
``(4) An heir determined to be missing pursuant to this
subsection shall be deemed to have predeceased the decedent for
purposes of descent and devise of trust or restricted land and
trust personalty within that decedent's estate.''.
SEC. 7. ANNUAL NOTICE AND FILING REQUIREMENT FOR OWNERS OF INTERESTS IN
TRUST OR RESTRICTED LANDS.
The Indian Land Consolidation Act (25 U.S.C. 2201 et seq.) is
amended by adding at the end the following:
``SEC. 222. ANNUAL NOTICE AND FILING; CURRENT WHEREABOUTS OF INTEREST
OWNERS.
``On at least an annual basis, the Secretary shall include along
with other regular reports to owners of trust or restricted interests
in land and individual Indian money account owners a change of name and
address form by means of which the owner may confirm or update the
owner's name and address. The change of name and address form shall
include a section in which the owner may confirm and update the owner's
name and address.''.
SEC. 8. NOTICE; EFFECTIVE DATE.
(a) Notice.--
(1) In general.--Not later than 180 days after the date of
enactment of this Act, the Secretary shall notify Indian tribes and
owners of trust or restricted lands of the amendments made by this
Act.
(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 and the amendments made by this
Act, with emphasis on the effect of the provisions of this Act
and the amendments made by this Act, on the testate disposition
and intestate descent of their interests in trust or restricted
land;
(B) estate planning options available to the owners,
including any opportunities for receiving estate planning
assistance or advice;
(C) the use of negotiated sales, gift deeds, land
exchanges, and other transactions for consolidating the
ownership of land; and
(D) a toll-free telephone number to be used for obtaining
information regarding the provisions of this Act and any trust
assets of such owners.
(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--
(A) certify that the requirements of this subsection have
been met; and
(B) publish notice of that certification in the Federal
Register.
(b) Effective Date.--Section 207 of the Indian Land Consolidation
Act (25 U.S.C. 2206), except subsections (e) and (f) of that section,
shall not apply to the estate of an individual who dies before the date
that is 1 year after the date on which the Secretary makes the
certification required under subsection (a)(4).
SEC. 9. SEVERABILITY.
If any provision of this Act or of any amendment made by this Act,
or the application of any such provision to any person or circumstance,
is held to be invalid for any reason, the remainder of this Act and of
amendments made by this Act, and the application of the provisions and
of the amendments made by this Act to any other person or circumstance
shall not be affected by such holding, except that each of subclauses
(II), (III), and (IV) of section 205(d)(2)(I)(i) is deemed to be
inseverable from the other 2, such that if any 1 of those 3 subclauses
is held to be invalid for any reason, neither of the other 2 of such
subclauses shall be given effect.
SEC. 10. REGULATIONS.
The Secretary is authorized to adopt such regulations as may be
necessary to implement the provisions of this Act.
Speaker of the House of Representatives.
Vice President of the United States and
President of the Senate.