[Congressional Bills 108th Congress]
[From the U.S. Government Publishing Office]
[S. 1721 Introduced in Senate (IS)]







108th CONGRESS
  1st Session
                                S. 1721

   To amend the Indian Land Consolidation Act to improve provisions 
    relating to probate of trust and restricted land, and for other 
                               purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                            October 14, 2003

 Mr. Campbell introduced the following bill; which was read twice and 
              referred to the Committee on Indian Affairs

_______________________________________________________________________

                                 A BILL


 
   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 2003''.

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; 
                        and
            (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;
                    (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.

SEC. 3. INDIAN PROBATE REFORM.

    (a) Testamentary 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) 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 an interest in trust or restricted land may 
                devise such an interest to--
                            ``(i) an Indian tribe with jurisdiction 
                        over the land; or
                            ``(ii) any Indian; or
                            ``(iii) any lineal descendant of the 
                        testator; or
                            ``(iv) any person who owns a preexisting 
                        undivided trust or restricted interest in the 
                        same parcel of land;
                in trust or restricted status.
                    ``(B) Rule of interpretation.--Any devise of an 
                interest in trust or restricted land or personal 
                property to a devisee listed in subparagraph (A) shall 
                be considered to be a devise of the interest in trust 
                or restricted status, unless--
                            ``(i) language in the will clearly 
                        evidences the testator's intent that the 
                        interest is to vest in the devisee as a fee 
                        interest without restrictions; or
                            ``(ii) the interest devised is a life 
                        estate.
            ``(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 interest in trust or 
                restricted land that is not devised in accordance with 
                paragraph (1) may be devised only--
                            ``(i) as a life estate without regard to 
                        waste 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), in fee to any person.
                    ``(B) Limitation.--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).
            ``(3) General devise of an interest in trust or restricted 
        personal property.--
                    ``(A) Trust or restricted personal property 
                defined.--The term `Trust or restricted personal 
                property' as used in this section includes--
                            ``(i) all funds and securities of any kind 
                        which are held in trust in an individual Indian 
                        money account or otherwise supervised for the 
                        decedent by the Secretary; and
                            ``(ii) absent clear evidence to the 
                        contrary, all personal property permanently 
                        affixed to trust or restricted lands.
                    ``(B) In general.--Subject to any applicable 
                Federal law relating to the devise or descent of such 
                trust or restricted personal property, or a tribal 
                probate code approved by the Secretary in accordance 
                with section 206, the owner of an interest in trust or 
                restricted personal property may devise such an 
                interest to any person or entity.
                    ``(C) Maintenance as trust or restricted personal 
                property.--Except as provided in paragraph (1)(B), 
                where an interest in trust or restricted personal 
                property is devised to a devisee listed in paragraph 
                (1)(A), the Secretary shall maintain and continue to 
                manage such interests as trust or restricted personal 
                property.
                    ``(D) Direct disbursement and distribution.--In the 
                case of a devise of an interest in trust or restricted 
                personal property to a devisee not listed in paragraph 
                (1)(A), the Secretary shall directly disburse and 
                distribute such personal property to the devisee.
            ``(4) Ineligible devisees of trust or restricted interest; 
        invalid wills.--Any interest in trust or restricted land or 
        personal property that is devised as a trust or restricted 
        interest to a devisee not listed in subparagraph (A) of 
        paragraph (1) shall descend to the devisee as a fee interest. 
        Any interest in trust or restricted land or personal property 
        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 (b).''.
    (b) Nontestamentary 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) Nontestamentary Disposition.--
            ``(1) Rules of descent.--Subject to any applicable Federal 
        law relating to the devise or descent of trust or restricted 
        property, any interest in trust or restricted property, 
        including personal property, that is not disposed of by a valid 
        will--
                    ``(A) shall descend according to a tribal probate 
                code that is approved in accordance with section 206; 
                or
                    ``(B) in the case of an interest in trust or 
                restricted property to which such a code does not 
                apply, shall descend in accordance with--
                            ``(i) paragraphs (2) through (4); 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 property in the estate as follows:
                            ``(i) If the decedent is survived by an 
                        heir described in subparagraph (B) (i), (ii), 
                        (iii), or (iv), the surviving spouse shall 
                        receive \1/3\ of the trust or restricted 
                        personal property 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 heirs described in 
                        subparagraph (B) (i), (ii), (iii), or (iv), the 
                        surviving spouse shall receive all of the trust 
                        or restricted personal property of the decedent 
                        and a life estate without regard to waste in 
                        the trust or restricted lands.
                            ``(iii) The remainder shall pass as set 
                        forth in subparagraph (B).
                    ``(B) Indian heirs.--Where there is no surviving 
                spouse of the decedent, or there is a remainder 
                pursuant to subparagraph (A), the estate or remainder 
                of the decedent shall, subject to subparagraph (A), 
                pass as follows:
                            ``(i) To the Indian children of the 
                        decedent (or if 1 or more of those Indian 
                        children do not survive the decedent, the 
                        Indian children of the deceased child of the 
                        decedent, by right of representation, if such 
                        Indian children of the child survive the 
                        decedent) in equal shares.
                            ``(ii) If the property does not pass under 
                        clause (i), to the surviving Indian great-
                        grandchildren of the decedent in equal shares.
                            ``(iii) If the property does not pass under 
                        clause (i) or (ii), to the surviving Indian 
                        brothers and sisters who are full siblings of 
                        the decedent or who are half-siblings by blood 
                        and not by marriage, in equal shares.
                            ``(iv) If the property does not pass under 
                        clause (i), (ii), or (iii), to the Indian 
                        parent or parents of the decedent 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.--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 the Secretary shall accumulate and hold 
                such interests in trust or restricted status for the 
                Indian tribe or tribes from which the decedent 
                descended.
            ``(3) Right of representation.--
                    ``(A) In general.--Subject to subparagraph (B)--
                            ``(i) the interests passing to children and 
                        grandchildren of a decedent under paragraph (2) 
                        shall be divided into as many equal shares as 
                        there are surviving children of the decedent, 
                        deceased children who have died before the 
                        decedent without issue, and deceased children 
                        who have died before the decedent and have left 
                        grandchildren who survive the decedent; and
                            ``(ii) 1 share shall pass to each surviving 
                        child of the decedent and 1 share shall pass 
                        equally divided among the surviving children of 
                        a deceased child.
                    ``(B) Exception for heirs of equal consanguinity.--
                Notwithstanding subparagraph (A), when the persons 
                entitled to take under subparagraph (B)(i) of paragraph 
                (2) are all in the same degree of consanguinity to the 
                decedent, they shall take in equal shares.
            ``(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.--A trust or restricted 
        interest in land or personal property that descends under the 
        provisions of this subsection (not including any interest in 
        land or personal property passing to a surviving spouse under 
        paragraph (2)(A)) shall continue to have the same trust or 
        restricted status in the hands of the heir as such interest had 
        immediately prior to the decedent's death.''.
    (c) 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: ``If a 
testator devises interests in the same parcel of trust or restricted 
lands to more than 1 person, in the absence of express language in the 
devise to the contrary, the devise shall be presumed to create joint 
tenancy with the right of survivorship in the interests involved.''.
    (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 section amends or 
        otherwise affects the application of any law described in 
        paragraph (1), or any other Federal law that provides for the 
        devise and descent of any trust or restricted land located on a 
        specific Indian reservation or for the devise and descent of 
        the allotted lands of a specific tribe or specific tribes.
    ``(i) Rules of Interpretation.--In the absence of a contrary 
intent, and except as otherwise provided under this Act or a tribal 
probate code approved by the Secretary pursuant to section 206, wills 
shall be construed as to trust and restricted land and personal 
property 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 personal property which the testator owned at his death, 
        including any such land or property acquired after the 
        execution of his will.
            ``(2) Class gifts.--
                    ``(A) 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 land or trust funds 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 and void devises and legacies; shares not in 
        residue.--Where a devise of property that is not part of the 
        residuary estate fails or becomes void because--
                    ``(A) the beneficiary has predeceased the testator;
                    ``(B) the devise has been revoked by the testator; 
                or
                    ``(C) the devise has been disclaimed by the 
                beneficiary;
        the property shall, if not otherwise expressly provided for 
        under this Act or a tribal probate code, pass under the 
        residuary clause, if any, contained in the will.
            ``(6) Lapsed and void devises and legacies; shares in 
        residue.--When a devise as described in paragraph (7) shall be 
        included in a residuary clause of the will and shall not be 
        available to the issue of the devisee, and if the disposition 
        shall not be otherwise expressly provided for by a tribal 
        probate code, it shall pass 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.
            ``(8) 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.
            ``(9) Advancements of trust or restricted personal property 
        during lifetime; effect on distribution of estate.--
                    ``(A) The trust or restricted personal property of 
                a decedent who dies intestate as to all or a portion of 
                his or her estate, given during the decedent's lifetime 
                to an heir of the decedent, 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 or 
                restricted personal property 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 property predeceases 
                the decedent, the property is not 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.
            ``(10) 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 based on the 
        relationship that would entitle the person to the larger share.
    ``(j) Heirship by Killing.--
            ``(1) `Heir by killing' defined.--As used in this 
        subsection, `heir by killing' means any person who 
        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 property, no heir by killing shall in any 
        way acquire any interests in trust or restricted property 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 interests in trust or restricted 
        property which would have passed from the decedent or his 
        estate to the heir by killing--
                    ``(A) under intestate succession under this 
                chapter;
                    ``(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 personal 
                property 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 property 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 interest in trust or 
                restricted property 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 the life expectancy of the decedent.
            ``(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 personal property 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 funds shall pass as if no charge 
                had been filed or made.
                    ``(C) Conviction.--Upon conviction of such person, 
                the trust and restricted land and personal property 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.--The provisions of this subsection shall apply 
        only to estates that are subject to probate under the 
        provisions of subsections (a) and (b).
            ``(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 trust or restricted land that the 
                        spouse would have received if the testator had 
                        died intestate.
                            ``(ii) Exception.--Clause (i) shall not 
                        apply to an interest in trust or restricted 
                        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 personal property in the testator's 
                        estate, as though there was no will under the 
                        provisions of section 207(b)(2)(A) if--
                                    ``(I) the testator and surviving 
                                spouse were continuously married 
                                without legal separation for the 10-
                                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 on 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.
                            ``(iv) Defined terms.--The terms 
                        `substantial payments or improvements' and 
                        `substantial period of time' as used in 
                        subparagraph (A)(iii) (III) and (IV) shall have 
                        the meanings given to them in the regulations 
                        adopted by the Secretary under the provisions 
                        of this Act.
                    ``(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 intestate interests of the decedent in 
                        trust or restricted land 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 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) prevents an entity 
                        responsible for adjudicating an interest in 
                        trust or restricted land from giving effect to 
                        a property right settlement 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 interests in trust or restricted 
                        land 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) 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 
                section 207(g).''.

SEC. 4. PARTITION OF HIGHLY FRACTIONATED INDIAN LANDS.

    Section 205 of the Indian Land Consolidation Act (25 U.S.C. 2204) 
is amended by adding at the end the following:
    ``(c) 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.--Subject to section 223 of this Act, 
        but notwithstanding any other provision of law, the Secretary 
        shall ensure that each partition action meets the following 
        requirements:
                    ``(A) Request.--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 trust 
                        or restricted interest in the parcel of land.
                    ``(B) 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.
                    ``(C) Consent requirements.--A parcel of land may 
                be partitioned under this subsection only with 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--
                                    ``(I) continuously maintained a 
                                bona fide residence on the parcel; or
                                    ``(II) continuously operated a bona 
                                fide farm, ranch, or other business on 
                                the parcel; and
                            ``(iii) the owners of at least 50 percent 
                        of the undivided interests in the parcel if, 
                        based on the final appraisal prepared pursuant 
                        to subparagraph (F), the Secretary determines 
                        that any person's undivided trust or restricted 
                        interest in the parcel has a value in excess of 
                        $1,000, except that the Secretary may consent 
                        on behalf of undetermined heirs, minors, and 
                        legal incompetents having no legal guardian, 
                        and missing owners or owners whose whereabouts 
                        are unknown but only after a search for such 
                        owners has been completed in accordance with 
                        the provisions of this subsection.
                    ``(D) Preliminary appraisal.--After the Secretary 
                has determined that the subject parcel is a parcel of 
                highly fractionated Indian land pursuant to 
                subparagraph (B), the Secretary shall cause a 
                preliminary appraisal of the subject parcel to be made.
                    ``(E) Notice to owners on completion of preliminary 
                appraisal.--Upon completion of the preliminary 
                appraisal, the Secretary shall give written notice of 
                the requested partition and preliminary appraisal to 
                all owners of undivided interests in the parcel, in 
                accordance with the following requirements:
                            ``(i) Contents of notice.--The notice 
                        required by this subsection shall state--
                                    ``(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;
                                    ``(IV) the results of the 
                                preliminary appraisal;
                                    ``(V) the owner's right to request 
                                a copy of the preliminary appraisal;
                                    ``(VI) the owner's right to comment 
                                on the proposed partition and the 
                                preliminary appraisal;
                                    ``(VII) the date by which the 
                                owner's comments must be received, 
                                which shall not be less than 60 days 
                                after the date that the notice is 
                                mailed or published under paragraph 
                                (2); and
                                    ``(VIII) the address for requesting 
                                copies of the preliminary appraisal and 
                                for submitting written comments.
                            ``(ii) Manner of service.--
                                    ``(I) Service by mail.--The 
                                Secretary shall attempt to provide all 
                                owners of interests in the subject 
                                parcel with actual notice of the 
                                partition proceeding by mailing a copy 
                                of the written notice described in 
                                clause (i) by first class mail to each 
                                such owner at the owner's last known 
                                address. In the event the written 
                                notice to an owner is returned 
                                undelivered, the Secretary shall, in 
                                accordance with regulations adopted to 
                                implement the provisions of this 
                                section, attempt to obtain a current 
                                address for such owner by inquiring 
                                with--
                                            ``(aa) the owner's 
                                        relatives, if any are known;
                                            ``(bb) the Indian tribe of 
                                        which the owner is a member; 
                                        and
                                            ``(cc) the Indian tribe 
                                        with jurisdiction over the 
                                        subject parcel.
                                    ``(II) Service by publication.--In 
                                the event that the Secretary is unable 
                                to serve the notice by mail pursuant to 
                                subclause (II), the notice shall be 
                                served by publishing the notice 2 times 
                                in a newspaper of general circulation 
in the county or counties where the subject parcel of land is located.
                    ``(F) Final appraisal.--After reviewing and 
                considering comments or information submitted by any 
                owner of an interest in the parcel in response to the 
                notice required under subparagraph (E), the Secretary 
                may--
                            ``(i) modify the preliminary appraisal and, 
                        as modified, determine it to be the final 
                        appraisal for the parcel; or
                            ``(ii) determine that preliminary appraisal 
                        should be the final appraisal for the parcel, 
                        without modifications.
                    ``(G) Notice to owners on determination of final 
                appraisal.--Upon making the determination under 
                subparagraph (F) the Secretary shall provide to each 
                owner of the parcel of land and the Indian tribe with 
                jurisdiction over the subject land, written notice 
                served in accordance with subparagraph (E)(ii) 
                stating--
                            ``(i) the results of the final appraisal;
                            ``(ii) the owner's right to review a copy 
                        of the appraisal upon request; and
                            ``(iii) that the land will be sold in 
                        accordance with subparagraph (G) for not less 
                        than the final appraised value subject to the 
                        consent requirements under paragraph (2)(C).
                    ``(H) Sale.--Subject to the requirements of 
                paragraph (2)(C), the Secretary shall--
                            ``(i) provide every owner of the parcel of 
                        land and the Indian tribe with jurisdiction 
                        over the subject land with notice that--
                                    ``(I) the decision to partition by 
                                sale is final; and
                                    ``(II) each owner has the right to 
                                appeal the determination of the 
                                Secretary to partition the parcel of 
                                land by sale, including the right to 
                                appeal the final appraisal;
                            ``(ii) after providing public notice of the 
                        sale pursuant to regulations adopted by the 
                        Secretary to implement this subsection, offer 
                        to sell the land by competitive bid for not 
                        less than the final appraised value to the 
                        highest bidder from among the following 
                        eligible bidders:
                                    ``(I) any owner of a trust or 
                                restricted interest in the parcel being 
                                sold;
                                    ``(II) the Indian tribe, if any, 
                                with jurisdiction over the parcel being 
                                sold; and
                                    ``(III) any member of the Indian 
                                tribe described in subclause (II); and
                            ``(iii) if no bidder described in clause 
                        (ii) presents a bid that equals or exceeds the 
                        appraised value, provide notice to the owners 
                        of the parcel of land and terminate the 
                        partition process.
                    ``(I) Decision not to sell.--If the required owners 
                do not consent to the partition by sale of the parcel 
                of land, in accordance with paragraph (2)(C), by a date 
                established by the Secretary, the Secretary shall 
                provide each Indian tribe with jurisdiction over the 
                subject land and each owner notice of that fact.
            ``(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 
                        appropriate order for the partition of the land 
                        in kind or 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 
                        1 against the United States or that the United 
                        States is an indispensable party.
            ``(4) Regulations.--The Secretary is authorized to adopt 
        such regulations as may be necessary to implement the 
        provisions of this subsection.''.

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 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 
        or mortgages 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, do either of 
        the following with respect to their interest in such parcel:
                    ``(A) Enter into a lease of the parcel for any 
                purpose authorized by section 1 of the Act of August 9, 
                1955 (25 U.S.C. 415(a)), for an initial term not to 
                exceed 25 years.
                    ``(B) Renew any lease described in paragraph (1) 
                for 1 renewal term not to exceed 25 years.
            ``(2) Rule of construction.--No such lease or renewal of a 
        lease shall be effective until the owners of all undivided 
        trust or restricted interests in the parcel have executed such 
        lease or renewal.
    ``(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.
            ``(2) Commencement of owner-management status.--
        Notwithstanding the approval of 1 or more applications pursuant 
        to paragraph (1), no interest in a parcel of trust or 
        restricted land shall have owner-management status until 
        applications for all of the trust or restricted interests in 
        such parcel have been submitted and approved by the Secretary 
        pursuant to this section and in accordance with regulations 
        adopted pursuant to subsection (l).
    ``(e) Validity of Leases.--A lease of trust or restricted interests 
in a parcel of land that is owner-managed under this section that 
violates any requirement or limitation set forth in subsection (c) 
shall be null and void and unenforceable against the owners of such 
interests, or against the land, the interest or the United States.
    ``(f) Lease Revenues.--The Secretary shall not be responsible for 
the collection of, or accounting for, any lease revenues accruing to 
any interests subject to this section while such interest is in owner-
management 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 in accordance with this section 
        shall continue to have jurisdiction over the interest in trust 
        or restricted land to the same extent and in all respects the 
        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 with 
        jurisdiction over the interest, 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 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 have 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 the interest--
                    ``(A) 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) 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 transactions described in paragraphs (1) 
and (2) of subsection (c), interests held in 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 that would otherwise apply to such interests.
    ``(k) Effect of Section.--Subject to subsections (c), (f), and (h), 
nothing in this section limits or otherwise affects any authority or 
responsibility of the Secretary with respect to an interest in trust or 
restricted land.
    ``(l) Regulations.--The Secretary shall promulgate such regulations 
as are necessary to carry out this section.''.

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 205 (25 U.S.C. 2204), by adding subsection 
        (c) as follows:
    ``(c) Purchase Option at Probate.--
            ``(1) In general.--Subject to section 207(b)(2)(A) of this 
        Act (25 U.S.C. 2206(b)(2)(A)), interests in a parcel of trust 
        or restricted land in the decedent's estate may be purchased at 
        probate in accordance with the provisions of this subsection.
            ``(2) Sale of interest at minimum fair market value.--
        Subject to paragraph (3), the Secretary is authorized to sell 
        trust or restricted interests subject to this subsection at no 
        less than fair market value to the highest bidder from among 
        the following eligible bidders:
                    ``(A) The heirs taking by intestate succession or 
                the devisees listed in section 207(a)(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 for auction.--No auction and sale of an 
        interest in probate shall occur under this subsection unless--
                    ``(A) except as provided in paragraph (6), the 
                heirs or devises of such interest consent to the sale; 
                and
                    ``(B) a person or the Indian tribe eligible to bid 
                on the interest under paragraph (2) submits a request 
                for the auction prior to the distribution of the 
                interest to heirs or devisees of the decedent and in 
                accordance with any regulations of the Secretary.
            ``(4) Appraisal and notice.--Prior to the sale of an 
        interest pursuant to this subsection, the Secretary shall--
                    ``(A) appraise the interest; and
                    ``(B) publish notice of the time and place of the 
                auction (or the time and place for submitting sealed 
                bids), a description, and the appraised value, of the 
                interest to be sold.
            ``(5) Rights of surviving spouse.--Nothing in this 
        subsection shall be construed to diminish or otherwise affect 
        the rights of a surviving spouse under section 207(b)(2)(A).
            ``(6) Highly fractionated indian lands.--Notwithstanding 
        paragraph (3)(A), the consent of an heir shall not be required 
        for the auction and sale of an interest at probate under this 
        subsection if--
                    ``(A) the interest is passing by intestate 
                succession; and
                    ``(B) prior to the auction the Secretary determines 
                that the interest involved is an interest in a parcel 
                of highly fractionated Indian land.
            ``(7) Regulations.--The Secretary shall promulgate 
        regulations to implement the provisions of this subsection.'';
            (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 
        by--
                    ``(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(a)(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 an entity 
                                        that is not a member of the 
                                        family of the owner of the 
                                        land.
                            ``(ii) Recording of interest.--On request 
                        by an 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) prevents or limits the 
                        ability of an owner of land to which that 
                        clause applies to mortgage the land or limit 
                        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.'';
            (4) in subparagraph (B), by striking ``subparagraph (A)'' 
        and all that follows through ``207(a)(6)(B) of this title'' and 
        inserting ``paragraph (1)'';
            (5) in section 207 (25 U.S.C. 2206), subsection (g)(5), by 
        striking ``this section'' and inserting ``subsections (a) and 
        (b)'';
            (6) 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)--
                            (i) by 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
                            (ii) 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 the pilot program 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'';
            (7) 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.--In accordance with 
        regulations to be promulgated by the Secretary, and in 
        consultation with tribal governments and other entities 
        described in section 213(b)(3), the Secretary shall 
        periodically remove liens referred to in paragraph (1) from 
        interests in land acquired by the Secretary.'';
            (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 an interest in trust 
                or restricted 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 a 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 insert ``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 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 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 
                interest is offered for sale to an entity 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).''; and
            (10) in section 219(b)(1)(A) (25 U.S.C. 2218(b)(1)(A)), by 
        striking ``100'' and inserting ``90''.
    (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 2003) of an 
                interest in trust or restricted land;
                    ``(B) any person meeting the definition of Indian 
                under the Indian Reorganization Act (25 U.S.C. 479) and 
                the regulations promulgated thereunder;
                    ``(C) any person not included in subparagraph (A) 
                or (B) who is a lineal descendant within 3 degrees of a 
                person described in subparagraph (A);
                    ``(D) an owner of a trust or restricted interest in 
                a parcel of land for purposes of inheriting another 
                trust or restricted interest in such parcel; and
                    ``(E) with respect to the ownership, devise, or 
                descent of trust or restricted land in the State of 
                California, any person who meets the definition of 
                `Indians of California' contained in the first section 
                of the Act of May 18, 1928 (25 U.S.C. 651), until 
                otherwise provided by Congress in accordance with 
                section 809(b) of the Indian Health Care Improvement 
                Act (25 U.S.C. 1679)(b)).''; and
            (2) 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 at the time of the 
        determination--
                    ``(A)(i) 100 or more but less than 200 co-owners of 
                undivided trust or restricted interests; and
                    ``(ii) no undivided trust or restricted interest 
                owned by any 1 person which represents more than 2 
                percent of the total undivided ownership of the parcel; 
                or
                    ``(B)(i) 200 or more but less than 350 co-owners of 
                undivided trust or restricted interests; and
                    ``(ii) no undivided trust or restricted interest 
                owned by any 1 person which represents more than 5 
                percent of the total undivided ownership of the parcel; 
                or
                    ``(C) 350 or more co-owners of undivided trust or 
                restricted interests.
            ``(7) `Person' means a natural person.''.
    (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) of the Indian Land 
        Consolidation Act (25 U.S.C. 2206(f)) 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''; and
            (3) by striking ``(3) Contracts.--'' and inserting the 
        following--
            ``(3) Indian civil legal assistance grants.--In carrying 
        out this section, the Secretary shall award grants to nonprofit 
        entities, as defined under section 501(c)(3) of the Internal 
        Revenue Code of 1986, which provide legal assistance services 
        for Indian tribes, individual owners of interests in trust or 
        restricted lands, or Indian organizations pursuant to Federal 
        poverty guidelines which submit an application to the 
        Secretary, in such form and manner as the Secretary may 
        prescribe, for the provision of 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
            (4) by adding at the end of section 207 (25 U.S.C. 2206) 
        the following:
    ``(k) Notification to Landowners.--
            ``(1) In general.--Not later than 2 years after the date of 
        enactment of this Act, the Secretary shall provide to each 
        Indian landowner a report that lists, with respect to each 
        tract of trust or restricted land in which the Indian landowner 
        has an interest--
                    ``(A) the location of the tract of land involved;
                    ``(B) the identity of each other co-owner of 
                interests in the parcel of land; and
                    ``(C) the percentage of ownership of each owner of 
                an interest in the tract.
            ``(2) Statutory construction.--Nothing in this subsection 
        shall preclude any individual Indian from obtaining from the 
        Secretary, upon the request of that individual, any information 
        specified in paragraph (1) before the expiration of the 2-year 
        period specified in paragraph (1).
            ``(3) Requirements for notification.--Each notification 
        made under paragraph (1) shall include information concerning 
        estate planning and land consolidation options under the 
        provisions of this Act and other applicable Federal law, 
        including information concerning--
                    ``(A) the preparation and execution of wills;
                    ``(B) negotiated sales;
                    ``(C) gift deeds;
                    ``(D) exchanges; and
                    ``(E) life estates without regard to waste.
            ``(4) Prohibition.--No individual Indian may be denied 
        access to information relating to land in which that individual 
        has an interest described in this section on the basis of 
        section 552a of title 5, United States Code (commonly referred 
        to as the `Privacy Act').
    ``(l) Private and Family Trusts Pilot Project.--
            ``(1) Development pilot project.--
                    ``(A) The Secretary shall consult with tribes, 
                individual landowner organizations, Indian advocacy 
                organizations, and other interested parties to--
                            ``(i) develop a pilot project for the 
                        creation and management of private and family 
                        trusts for interests in trust or restricted 
                        lands; and
                            ``(ii) develop proposed rules, regulations, 
                        and guidelines to implement the pilot project.
                    ``(B) The pilot project shall commence on the date 
                of enactment of the American Indian Probate Reform Act 
                of 2003 and shall continue for 3 years after the date 
                of enactment of this subsection.
            ``(2) Characteristics of private and family trusts.--For 
        purposes of this subsection and any proposed rules, 
        regulations, or guidelines developed under this subsection--
                    ``(A) the terms `private trust' and `family trust' 
                shall both mean trusts created pursuant to this 
                subsection for the management and administration of 
                interests in trust or restricted land, held by 1 or 
                more persons, which comprise the corpus of a trust, by 
                a private trustee subject to the approval of the 
                Secretary;
                    ``(B) private and family trusts shall be created 
                and managed in furtherance of the purposes of the 
                Indian Land Consolidation Act (25 U.S.C. 2201 et seq.); 
                and
                    ``(C) private and family trusts 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 interests in trust or 
restricted lands to exercise any powers over such interests greater 
than that held by the Secretary with respect to such interests.
            ``(3) 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, 
                regulations, and/or guidelines for the creation and 
                management of private and family trusts over interests 
                in trust and restricted lands;
                    ``(B) the feasibility of accurately tracking such 
                private and family trusts;
                    ``(C) the impact that private and family trusts 
                would have with respect to the accomplishment of the 
                goals of the Indian Land Consolidation Act (25 U.S.C. 
                2201 et seq.); and
                    ``(D) a final recommendation regarding whether to 
                adopt the creation of a permanent private and family 
                trust program as a management and consolidation measure 
                for interests in trust or restricted lands.''.

SEC. 7. UNCLAIMED AND ABANDONED PROPERTY.

    The Indian Land Consolidation Act (25 U.S.C. 2201 et seq.) (as 
amended by section 5) is amended by adding at the end the following:

``SEC. 222. UNCLAIMED AND ABANDONED PROPERTY.

    ``(a) Interests Presumed Abandoned.--An undivided trust or 
restricted interest in a parcel of land owned by a person shall be 
presumed abandoned and subject to the provisions of this section if the 
Secretary makes a determination that--
            ``(1) a period of 6 consecutive years next preceding such 
        determination has passed during which the person owning such 
        interest has not made any indication or expression of interest 
        in the trust or restricted interest as set forth in subsection 
        (b);
            ``(2) the person owning the trust or restricted interest 
        was, at all times during the 6-year period described in 
        paragraph (1), over the age of 18; and
            ``(3) as of the expiration of the 6-year period described 
        in paragraph (1), such parcel was a parcel of highly 
        fractionated Indian land.
    ``(b) Indicators of Owner Interest.--For purposes of subsection 
(a), an indication or expression of an owner's interest in the property 
shall mean the owner or any person acting on behalf of the owner--
            ``(1) making a deposit to, withdrawal from, or inquiry into 
        an individual Indian money account associated with such 
        interest;
            ``(2) negotiating a Treasury check derived from such 
        interest or account;
            ``(3) providing the Secretary with a valid address; or
            ``(4) communicating with the Secretary regarding such 
        interest or account.
    ``(c) Related Property.--At the time that property is presumed to 
be abandoned under this section, any other property right accrued or 
accruing to the owner as a result of the interest, including funds in 
an associated individual Indian money account, that has not previously 
been presumed abandoned under this section, also shall be presumed 
abandoned.
    ``(d) Annual List of Property; Notice to Owners.--No later than the 
first day of November of each year, the Secretary shall prepare and 
distribute a list of names of persons owning property presumed 
abandoned under this section during the preceding fiscal year and 
provide notice to such persons in accordance with the following 
requirements:
            ``(1) Contents of annual list.--The list shall set forth--
                    ``(A) the names of all persons owning interests in 
                land and property presumed to be abandoned under this 
                section;
                    ``(B) with respect to each person named on the 
                list, the reservation, if any, and the county and State 
                in which the person's interest in land is located;
                    ``(C) the reservation, if any, the city or town, 
                county and State of the person's last known address; 
                and
                    ``(D) the name, address, and telephone number of 
                the official or officials within the Department of the 
                Interior to contact for purposes of identifying persons 
                or lands included on the list.
            ``(2) Distribution of list.--The list shall be distributed 
        to all regional offices and agencies of the Bureau of Indian 
        Affairs and to all reservations where land described on this 
        list is located and shall cause the list to be published in the 
        Federal Register within 15 days after the list is prepared.
            ``(3) Notice by mail.--In addition to publishing and 
        distributing the list described in paragraph (1), the Secretary 
        shall attempt to provide the persons owning such trust or 
        restricted interests with actual written notice that the 
        interest and any associated funds or property is presumed 
        abandoned under the provisions of this section. Such notice 
        shall be sent by first class mail to the owner at the owner's 
        last known address and shall include the following:
                    ``(A) A legal description of the parcel of which 
                the interest is a part.
                    ``(B) A description of the owner's interest.
                    ``(C) A statement that the owner has not indicated 
                or expressed an interest in the trust or restricted 
                interest for a period of 6 consecutive years and that 
                such interest, and any funds in an associated 
                individual Indian money account, is presumed abandoned.
                    ``(D) A statement that the interest will be 
                appraised and sold for its appraised value unless the 
                owner responds to the notice within 60 days after the 
                notice is mailed or published.
                    ``(E) A statement that in the event the owner fails 
                to respond and the notice and the property is sold, the 
                proceeds of such sale and any funds in any associated 
                individual Indian money account will be deposited in an 
unclaimed property account.
            ``(4) Search for whereabouts of owner.--If the notice 
        described in paragraph (3) is returned undelivered, the 
        Secretary shall attempt to locate the owner by--
                    ``(A) searching publicly available records and 
                Federal records, including telephone and address 
                directories and using electronic search methods;
                    ``(B) inquiring with--
                            ``(i) the owner's relatives, if any are 
                        known;
                            ``(ii) any Indian tribe of which the owner 
                        is a member; and
                            ``(iii) the Indian tribe, if any, with 
                        jurisdiction over the interest; and
                    ``(C) if the value of the interest and any funds in 
                an associated individual Indian money account exceeds 
                $1,000, engaging an independent search firm to perform 
                a missing person search.
            ``(5) Notice by publication.--In the event that the 
        Secretary is unable to locate the owner pursuant to paragraph 
        (4), the Secretary shall publish a notice not later than 
        November 30 following the fiscal year in which the property was 
        presumed to be abandoned under this section. The notice shall 
        include the same information required for the notice described 
        in paragraph (3) and shall be--
                    ``(A) published in a newspaper of general 
                circulation on or near the apparent owner's home 
                reservation and near the last known address of the 
                owner; and
                    ``(B) in a form that is likely to attract the 
                attention of the apparent owner of the property.
    ``(e) Conversion of Abandoned Interests.--If, after 2 years from 
the date the notice is published under subsection (d)(3), any such real 
property or interest therein remains unclaimed, the Secretary shall 
appraise such property in a manner consistent with section 215 of the 
Indian Land Consolidation Act (25 U.S.C. 2214) and shall purchase the 
property at its appraised value, or sell the property to an Indian 
tribe with jurisdiction over such property or a person who owns an 
undivided trust or restricted interest in such property, by competitive 
bid for not less than the appraised value. The Secretary shall then 
transfer any monetary interest that the Secretary holds for the 
previous apparent owner to the unclaimed property account described in 
subsection (f).
    ``(f) Unclaimed Property Account.--
            ``(1) Except as otherwise provided by this section, the 
        Secretary shall promptly deposit in a special unclaimed 
        property account all funds received under this section. The 
        Secretary shall pay all claims under subsection (g) from this 
        account. The Secretary shall record the name and last known 
        address of each person appearing to be entitled to the 
        property.
            ``(2) The Secretary is authorized to use interest earned on 
        the special unclaimed property account to pay--
                    ``(A) the administrative costs of conversion of 
                real property under subsection (g); and
                    ``(B) costs of mailing and publication in 
                connection with abandoned property.
            ``(3) The Secretary shall retain a sufficient balance in 
        the account at all times from which to pay claims duly allowed. 
        All other funds shall be available to the Secretary to use for 
        the purposes of land consolidation pursuant to 25 U.S.C. 2212.
    ``(g) Claims.--
            ``(1) Filing of claim.--An individual, or the heirs of an 
        individual, may file a claim to recover property or the 
        proceeds of the conversion of the property on a form prescribed 
        by the Secretary.
            ``(2) Allowance or denial of claim.--Not more than 180 days 
        after a claim is filed, the Secretary shall allow or deny the 
        claim and give written notice of the decision to the claimant. 
        If the claim is denied, the Secretary shall inform the claimant 
        of the reasons for the denial and specify what additional 
        evidence is required before the claim will be allowed. The 
        claimant may then file a new claim with the Secretary or 
        maintain an action under this subsection.
            ``(3) Payment of allowed claim.--Not more than 60 days 
        after a claim is allowed, the property or the net proceeds of 
        the conversion of the property shall be delivered or paid by 
        the Secretary to the claimant, together with any interest, or 
        other increment to which the claimant is entitled under this 
        section.
            ``(4) Judicial review.--An individual aggrieved by a 
        decision of the Secretary under this subsection or whose claim 
        has not been acted upon within 180 days may, after exhausting 
        administrative remedies, seek--
                    ``(A) judicial review or other appropriate relief 
                against the Secretary in a United States district 
                court, which may include an order quieting beneficial 
                title in the name of petitioner whose property was sold 
                by the Secretary in violation of this section; and
                    ``(B) recover reasonable attorneys fees if he is 
                the prevailing party.
    ``(h) Voluntary Abandonment.--Any person who is an owner of an 
interest subject to this section may, with the Secretary's approval, 
voluntarily abandon that interest to the benefit of the tribe with 
jurisdiction over the parcel of land or a co-owner of a trust or 
restricted interest in the same parcel of land in accordance with 
regulations adopted pursuant to subsection (j).
    ``(i) Transfer of Abandoned Interests in Land.--
            ``(1) Any interest in land acquired under subsection (e) or 
        (h) over which an Indian tribe has jurisdiction shall be held 
        in trust by the Secretary for the benefit of that tribe, 
        provided that the tribe may decline any such property in its 
        discretion, and provided that if the tribe declines or does not 
        currently own any interest within that parcel a co-owner with a 
majority interest shall have the first right of purchase of the 
property at the appraised price.
            ``(2) Any interest in real property acquired under 
        subsection (e) or (h) that is not subject to the jurisdiction 
        of an Indian tribe shall be held in trust by the Secretary for 
        all of the other co-owners of undivided trust or restricted 
        interests in the parcel in proportion to their respective 
        interests in the property, provided that any owner may decline 
        to accept such interest, in which case that interest shall be 
        allocated proportionately among such other co-owners who do not 
        decline.
            ``(3) The Indian tribe or other subsequent owner described 
        in paragraph (2) takes such interest free of all claims by the 
        owner who abandoned the interest and of all persons claiming 
        through or under such owner.
    ``(j) Regulations.--The Secretary is authorized to adopt such 
regulations as may be necessary to implement the provisions of this 
section.''.

SEC. 8. MISSING HEIRS.

    Section 207 of the Indian Land Consolidation Act (25 U.S.C. 2206) 
is amended by adding the following:
    ``(m) Notice.--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, including notice of the provisions of this 
subsection and of section 207(n) of this Act. Such efforts shall 
include--
            ``(1) a search of publicly available records and Federal 
        records, including telephone and address directories and 
        including electronic search methods;
            ``(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 $1,000, an 
        independent firm shall be contracted to conduct a missing 
        persons search.
    ``(n) Missing Heirs.--
            ``(1) For purposes of this subsection and subsection (m), 
        an heir will be presumed missing if his whereabouts remain 
        unknown 60 days after completion of notice efforts under 
        subsection (m) and they have had no contact with other heirs or 
        the Department for 6 years prior to a hearing or decision to 
        ascertain heirs.
            ``(2) Before the date for declaring an heir missing, any 
        person may request an extension of time to locate an heir. An 
        extension may be granted for good cause.
            ``(3) An heir shall be declared missing only after a review 
        of the efforts made and a finding that this section has been 
        complied with.
            ``(4) A missing heir shall be presumed to have predeceased 
        the decedent for purposes of descent and devise.''.

SEC. 9. 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.) (as 
amended by section 7) is amended by adding at the end the following:

``SEC. 222. ANNUAL NOTICE AND FILING; CURRENT WHEREABOUTS OF INTEREST 
              OWNERS.

    ``(a) In General.--On an annual basis, the Secretary shall send a 
notice, response form, and a change of name and address form to each 
owner of an interest in trust or restricted land. The notice shall 
inform owners of their interest and obligation to provide the Secretary 
with a notice of any change in their name or address immediately upon 
such change. The response form should include a section in which the 
owner may confirm or update his name and address. The change of name 
and address form may be used by the owner at any time when his name or 
address changes subsequent to his annual filing of the response form.
    ``(b) Owner Response.--The owner of an interest in trust or 
restricted land shall file the response form upon receipt to confirm or 
update his name and address on an annual basis.
    ``(c) No Response; Initiation of Search.--In the event that an 
owner does not file the response form or provide the Secretary with a 
confirmation or update of his name and address through other means, the 
Secretary shall initiate a search in order to ascertain the whereabouts 
and status of the owner.''.

SEC. 10. EFFECTIVE DATE.

    The amendments made by this Act shall not apply to the estate of an 
individual who dies before the later of--
            (1) the date that is 1 year after the date of enactment of 
        this Act; or
            (2) the date specified in section 207(g)(5) of the Indian 
        Land Consolidation Act (25 U.S.C. 2206(g)(5)).
                                 <all>