[Congressional Bills 108th Congress]
[From the U.S. Government Publishing Office]
[S. 550 Introduced in Senate (IS)]







108th CONGRESS
  1st Session
                                 S. 550

   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

                             March 6, 2003

 Mr. Campbell (for himself, Mr. Inouye, and Mr. Thomas) 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 enacted 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 in trust or restricted 
                        status (or as a passive trust interest as 
                        provided for in section 207A).
                    ``(B) Status.--The devise of an interest in trust 
                or restricted land to an Indian under subparagraph 
                (A)(ii) shall not alter the status of such an interest 
                as a trust or restricted interest unless the testator 
                provides that the interest is to be held as a passive 
                trust interest.
            ``(2) Devise of trust or restricted land in passive trust 
        or 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 to any non-Indian 
                        person, with the remainder being devised only 
                        in accordance with clause (ii), subparagraph 
                        (C), or paragraph (1)(A);
                            ``(ii) to the lineal descendant or heir of 
                        the first or second degree of the testator or, 
                        if the testator does not have an heir of the 
                        first or second degree or a lineal descendant, 
                        to any lineal descendant of an Indian 
                        grandparent of the testator, as a passive trust 
                        interest (referred to in this section as an 
                        `eligible passive trust devisee'); or
                            ``(iii) in fee in accordance with 
                        subparagraph (C).
                    ``(B) Presumed devise of passive trust interest.--
                Any devise to an eligible passive trust devisee, or any 
                devise of a remainder interest from the devise of a 
                life estate under subparagraph (A)(ii), that does not 
                indicate whether the interest is devised as a passive 
                trust interest or a fee interest shall be considered to 
                devise a passive trust interest.
                    ``(C) Devise of a fee interest.--Subject to 
                subparagraph (D), any interest in trust or restricted 
                land that is not devised in accordance with paragraph 
                (1), or devised to an eligible passive trust devisee in 
                accordance with subparagraph (A), may be devised to a 
                non-Indian in fee.
                    ``(D) 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); or
                            ``(iii) paragraph (1).
            ``(3) Devise of a passive trust interest.--
                    ``(A) In general.--The holder of an interest in 
                trust or restricted land that is held as a passive 
                trust interest may devise the interest as a passive 
                trust interest only to--
                            ``(i)(I) any Indian; or
                            ``(II) the Indian tribe that exercises 
                        jurisdiction over the interest;
                            ``(ii) the lineal descendants, or heirs of 
                        the first or second degree, of the holder;
                            ``(iii) any living descendant of the 
                        decedent from whom the holder acquired the 
                        interest by devise or descent; or
                            ``(iv) any person that owns a preexisting 
                        interest or a passive trust interest in the 
                        same parcel of land, if the preexisting 
                        interest is held in trust or restricted status 
                        or in passive trust status.
                    ``(B) Ineligible devisees and intestate 
                succession.--A passive trust interest that is devised 
                to a person that is not eligible under subparagraph (A) 
                or that is not disposed of by a valid will shall pass 
                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 land 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 land to which such a code does not apply, 
                shall descend in accordance with--
                            ``(i) paragraphs (2) through (7);
                            ``(ii) section 207A; and
                            ``(iii) other applicable Federal law.
            ``(2) No applicable code.--An intestate interest to which a 
        code described in paragraph (1) does not apply--
                    ``(A) shall include--
                            ``(i) an interest acquired by a decedent 
                        through devise or inheritance (referred to in 
                        this subsection as a `devise or inheritance 
                        interest'); or
                            ``(ii) an interest acquired by a decedent 
                        by any means other than devise or inheritance 
                        (referred to in this subsection as an `acquired 
                        interest'), if--
                                    ``(I) the decedent--
                                            ``(aa) acquired additional 
                                        undivided interest in the same 
                                        parcel in which the interest is 
                                        held, by a means other than 
                                        devise or inheritance; or
                                            ``(bb) acquired land 
                                        adjoining the parcel of land in 
                                        which the interest is held; or
                                    ``(II) the parcel of land in which 
                                the interest is held includes the 
                                residence of the spouse of the 
                                decedent; and
                    ``(B) shall descend as follows:
                            ``(i) Surviving indian spouse.--
                                    ``(I) In general.--If a decedent is 
                                survived by an Indian spouse, and the 
                                estate of the decedent includes 1 or 
                                more acquired interests, the spouse of 
                                the decedent shall receive all of the 
                                acquired interests.
                                    ``(II) Devise or inheritance 
                                interests.--If a decedent is survived 
                                by an Indian spouse, and the estate of 
                                the decedent includes 1 or more devise 
                                or inheritance interests--
                                            ``(aa) if the decedent is 
                                        not survived by an Indian heir 
                                        of the first or second degree, 
                                        the spouse of the decedent 
                                        shall receive all of the devise 
                                        or inheritance interests; and
                                            ``(bb) if the decedent is 
                                        survived by an Indian heir of 
                                        the first or second degree, the 
                                        devise or inheritance interest 
                                        of the decedent shall descend 
                                        in accordance with paragraph 
                                        (3)(A).
                            ``(ii) Surviving non-indian spouse.--
                                    ``(I) In general.--If a decedent is 
                                survived by a non-Indian spouse, and 
                                the estate of the decedent includes 1 
                                or more acquired interests--
                                            ``(aa) the spouse of the 
                                        decedent shall receive a life 
                                        estate in each acquired 
                                        interest; and
                                            ``(bb)(AA) if the decedent 
                                        is survived by an Indian heir 
                                        of the first or second degree, 
                                        the remainder interests shall 
                                        descend in accordance with 
                                        paragraph (3)(A); and
                                            ``(BB) if the decedent is 
                                        not survived by an Indian heir 
                                        of the first or second degree, 
                                        the remainder interest shall 
                                        descend in accordance with 
                                        paragraph (3)(C).
                                    ``(II) Devise or inheritance 
                                interests.--If the estate of a decedent 
                                described in subclause (I) includes 1 
                                or more devise or inheritance 
                                interests--
                                            ``(aa) if the decedent is 
                                        survived by an Indian heir of 
                                        the first or second degree, the 
                                        devise or inheritance interests 
                                        shall descend in accordance 
                                        with paragraph (3)(A); and
                                            ``(bb) if the decedent is 
                                        not survived by an Indian heir 
                                        of the first or second degree, 
                                        the devise or inheritance 
                                        interests shall descend in 
                                        accordance with paragraph 
                                        (3)(C).
                            ``(iii) No surviving spouse.--If a decedent 
                        is not survived by a spouse, and the estate of 
                        the decedent includes 1 or more acquired 
                        interests or 1 or more devise or inheritance 
                        interests--
                                    ``(I) if the decedent is survived 
                                by an Indian heir of the first or 
                                second degree, the acquired interests 
                                or devise or inheritance interests 
                                shall descend in accordance with 
                                paragraph (3)(A); and
                                    ``(II) if the decedent is not 
                                survived by an Indian heir of the first 
                                or second degree, the acquired 
                                interests or devise or inheritance 
                                interests shall descend in accordance 
                                with paragraph (3)(C).
            ``(3) Rules governing descent of estate.--
                    ``(A) Indian heirs.--For the purpose of this 
                section, an Indian heir of the first or second degree 
                shall inherit in the following order:
                            ``(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) shall 
                        inherit in equal shares.
                            ``(ii) If the decedent has no Indian 
                        children (or grandchildren that inherit by 
                        right of representation under clause (i)), to 
                        the Indian brothers and sisters of the 
                        decedent, in equal shares.
                            ``(iii) If the decedent has no Indian 
                        brothers or sisters, to the Indian parent or 
                        parents of the decedent.
                    ``(B) Right of representation.--In any case 
                involving the determination of a right of 
                representation--
                            ``(i) each interest in trust land shall be 
                        equally divided into a number of shares that 
                        equals the sum obtained by adding--
                                    ``(I) the number of surviving heirs 
                                in the nearest degree of kinship; and
                                    ``(II) the number of deceased 
                                individuals in that same degree, if 
                                any, who left issue who survive the 
                                decedent;
                            ``(ii) each surviving heir described in 
                        clause (i)(I) shall receive 1 share; and
                            ``(iii)(I) each deceased individual 
                        described in clause (i)(II) shall receive 1 
                        share; and
                            ``(II) that share shall be divided equally 
                        among the surviving issue of the deceased 
                        person.
                    ``(C) No indian heirs.--
                            ``(i) Definition of collateral heir.--In 
                        this subparagraph, the term `collateral heir' 
                        means an aunt, uncle, niece, nephew, or first 
                        cousin of a decedent.
                            ``(ii) No heirs.--If a decedent does not 
                        have an Indian heir of the first or second 
                        degree, an interest shall descend to any Indian 
                        collateral heir who is a co-owner of an 
                        interest owned by the decedent.
                            ``(iii) Multiple collateral heirs.--If--
                                    ``(I) an Indian collateral heir 
                                owns an interest to which clause (ii) 
                                applies that is larger than the 
                                interest held by any other such 
                                collateral heir, the interest shall 
                                descend to the collateral heir that 
                                owns the largest undivided interest in 
                                the parcel; or
                                    ``(II) 2 or more collateral heirs 
                                own equal shares in an interest to 
                                which clause (ii) applies, the interest 
                                shall be divided equally among those 
                                collateral heirs.
                            ``(iv) No ownership.--If none of the Indian 
                        collateral heirs of a decedent owns an interest 
                        to which clause (ii) applies, subject to clause 
                        (v), the interest shall descend to the Indian 
                        tribe that exercises jurisdiction over the 
                        parcel of trust or restricted land involved.
                            ``(v) Acquisition of interest.--
                                    ``(I) In general.--Notwithstanding 
                                clause (iv), an Indian co-owner 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 or to the land.
                                    ``(II) Multiple co-owners.--If more 
                                than 1 Indian co-owner (including the 
                                Indian tribe referred to in clause 
                                (iv)) offers to pay for an interest 
                                described in subclause (I), the highest 
                                bidder shall acquire the interest.
            ``(4) Special rule relating to survival.--In the case of 
        intestate succession under this section, if an individual who 
        fails to survive a 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) 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 in a case in which--
                                    ``(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.
                    ``(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.
            ``(6) 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, on 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.
            ``(7) Notice.--
                    ``(A) In general.--To the maximum extent 
                practicable, the Secretary shall notify each owner of 
                trust and restricted land of the provisions of this 
                Act.
                    ``(B) Combined notices.--The notice under 
                subparagraph (A) may, at the discretion of the 
                Secretary, be provided with the notice required under 
                section 207(g).''.
    (c) 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.--For purpose of subsections (a) and (b), 
        any reference to applicable Federal law includes--
                    ``(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 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.''.
    (d) Passive Trust Interest Status for Trust or Restricted Land.--
The Indian Land Consolidation Act is amended by inserting after section 
207 (25 U.S.C. 2206) the following:

``SEC. 207A. PASSIVE TRUST INTEREST STATUS FOR TRUST OR RESTRICTED 
              LAND.

    ``(a) Passive Trust Interest Status.--
            ``(1) In general.--The owner of an interest in trust or 
        restricted land may submit to the Secretary an application 
        requesting that the interest be held in passive trust interest 
        status.
            ``(2) Authority.--An application under paragraph (1) may 
        authorize the Secretary to amend any existing lease or 
        agreement with respect to the interest that is the subject of 
        the application.
    ``(b) Approval.--On the approval of an application by the Secretary 
under subsection (a), an interest in trust or restricted land covered 
by the application shall be held as a passive trust interest in 
accordance with this section.
    ``(c) Requirements.--Except as provided in this section, an 
interest in trust or restricted land that is held as a passive trust 
interest under this section--
            ``(1) shall continue to be covered under any applicable 
        tax-exempt status, and continue to be subject to any 
        restrictions on alienation, until the interest is patented in 
        fee;
            ``(2) may, without the approval of the Secretary, be--
                    ``(A) leased for a period of not to exceed 25 
                years;
                    ``(B) mortgaged in accordance with the Act of March 
                29, 1956 (25 U.S.C. 483a); or
                    ``(C) sold or conveyed to--
                            ``(i) an Indian;
                            ``(ii) the Indian tribe that exercises 
                        jurisdiction over the interest; or
                            ``(iii) a co-owner of an interest in the 
                        parcel of land in which the interest is held, 
                        if the co-owner owns a pre-existing trust, 
                        restricted interest, or a passive trust 
                        interest in the parcel; and
            ``(3) may be subject to an ordinance or resolution enacted 
        under subsection (d).
    ``(d) Ordinance or Resolution for Removal of Status.--
            ``(1) In general.--The governing body of the Indian tribe 
        that exercises jurisdiction over an interest in trust or 
        restricted land that is held as a passive trust interest in 
        accordance with this section may enact an ordinance or 
        resolution to permit the owner of the interest to apply to the 
        Secretary for the removal of the trust or restricted status of 
        any portion of the land that is subject to the jurisdiction of 
        the Indian tribe.
            ``(2) Review by secretary.--The Secretary shall review, and 
        may approve, an ordinance or resolution enacted by an Indian 
        tribe in accordance with paragraph (1) if the Secretary 
        determines that the ordinance or resolution--
                    ``(A) is consistent with this Act; and
                    ``(B) would not increase fractionated ownership of 
                Indian land.
    ``(e) Revenues or Royalties.--
            ``(1) In general.--Except as provided in paragraph (2), the 
        Secretary shall not be responsible for the collection of or 
        accounting for any lease revenues or royalties accruing to an 
        interest held as a passive trust interest by any person under 
        this section.
            ``(2) Exception.--Paragraph (1) shall not apply to an 
        interest described in that paragraph if the Secretary approves 
        an application to take the interest into active trust status on 
        behalf of an Indian or an Indian tribe in accordance with 
        regulations promulgated by the Secretary.
            ``(3) Authority of secretary.--Nothing in this subsection 
        alters any authority or responsibility of the Secretary with 
        respect to an interest in trust or restricted land held in 
        active trust status (including an undivided interest included 
        in the same parcel of land as an undivided passive trust 
        interest).
    ``(f) Jurisdiction Over Passive Trust Interest.--With respect to an 
interest in trust or restricted land that is devised or held as a 
passive trust interest under this section--
            ``(1) an Indian tribe that exercises jurisdiction over such 
        an interest shall continue to exercise jurisdiction over the 
        land that is held as a passive trust interest; and
            ``(2) any person holding, leasing, or otherwise using the 
        land shall be considered to consent to the jurisdiction of the 
        Indian tribe with respect to the use of the land (including any 
        effects associated with any use of the land).
    ``(g) Probate of Passive Trust Interests.--
            ``(1) In general.--An interest in trust or restricted land 
        that is held as a passive trust interest under this section 
        shall be subject to--
                    ``(A) probate by the Secretary in accordance with 
                this Act; and
                    ``(B) all other laws applicable to the probate of 
                trust or restricted land.
            ``(2) Commencement of probate.--Any interested party may 
        file an application to commence the probate of an interest in 
        trust or restricted land held as a passive trust interest.
    ``(h) Regulations.--The Secretary shall promulgate such regulations 
as are necessary to carry out this section.''.

SEC. 4. PARTITION OF INDIAN LAND.

    Section 205 of the Indian Land Consolidation Act (25 U.S.C. 2204) 
is amended by adding at the end the following:
    ``(c) Partition.--
            ``(1) Definitions.--In this subsection:
                    ``(A) Eligible indian tribe.--The term `eligible 
                Indian tribe' means an Indian tribe that--
                            ``(i) owns eligible land; and
                            ``(ii) consents to partition of the 
                        eligible land.
                    ``(B) Eligible land.--The term `eligible land' 
                means an undivided parcel of land that--
                            ``(i) is located within the reservation of 
                        an Indian tribe; or
                            ``(ii) is otherwise under the jurisdiction 
                        of an Indian tribe.
            ``(2) Requirements.--Notwithstanding any other provision of 
        law, in accordance with this subsection and subject to 
        paragraphs (3), (4), and (5)--
                    ``(A) an eligible Indian tribe may apply to the 
                Secretary for the partition of a parcel of eligible 
                land; and
                    ``(B) the Secretary may commence a process for 
                partitioning the eligible land under this subsection 
                if--
                            ``(i) the eligible Indian tribe meets the 
                        applicable ownership requirement under 
                        subparagraph (A) or (B) of paragraph (3); or
                            ``(ii) the Secretary determines that it is 
                        reasonable to believe that the partition of the 
                        eligible land owned would be in accordance with 
                        paragraph (3)(C).
            ``(3) Tribal ownership.--A parcel of eligible land may be 
        partitioned under this subsection if, with respect to the 
        eligible Indian tribe involved--
                    ``(A) the eligible Indian tribe owns 50 percent or 
                more of the undivided interest in the parcel;
                    ``(B) the eligible Indian tribe is the owner of the 
                largest quantity of undivided interest in the parcel; 
                or
                    ``(C) the owners of undivided interests equal to at 
                least 50 percent of the undivided interest in the 
                parcel (including any undivided interest owned by the 
                eligible Indian tribe) consent or do not object to the 
                partition.
            ``(4) Tribal consent.--A parcel of land that is located 
        within the reservation of an Indian tribe or otherwise under 
        the jurisdiction of an Indian tribe shall be partitioned under 
        this subsection only if the Indian tribe does not object to the 
        partition.
            ``(5) Applicability.--This subsection shall not apply to 
        any parcel of land that is the bona fide residence of any 
        person unless the person consents to the partition in writing.
            ``(6) Partition in kind.--
                    ``(A) In general.--The Secretary shall commence the 
                partition process described in subparagraph (B) if--
                            ``(i) an eligible Indian tribe applies to 
                        partition eligible land under this paragraph; 
                        and
                            ``(ii)(I) the Secretary determines that the 
                        eligible Indian tribe meets the applicable 
                        ownership requirements of subparagraph (A) or 
                        (B) of paragraph (3); or
                            ``(II) the Secretary determines that it is 
                        reasonable to believe that the partition would 
                        be in accordance with paragraph (3)(C).
                    ``(B) Partition Process.--In carrying out any 
                partition under this paragraph, the Secretary shall--
                            ``(i) provide, to each owner of any 
                        undivided interest in eligible land to be 
                        partitioned, through publication or other 
                        appropriate means, notice of the proposed 
                        partition;
                            ``(ii) make available to any interested 
                        party a copy of any proposed partition plan 
                        submitted by an eligible Indian tribe or 
                        proposed by the Secretary; and
                            ``(iii) review--
                                    ``(I) any proposed partition plan 
                                submitted by any owner of an undivided 
                                interest in the eligible land; and
                                    ``(II) any comments or objections 
                                concerning a partition, or any proposed 
                                plan of partition, submitted by any 
                                owner or any other interested party.
                    ``(C) Determination not to partition.--If the 
                Secretary determines that a parcel of eligible land 
                cannot be partitioned in a manner that is fair and 
                equitable to the owners of the eligible land, the 
                Secretary shall inform each owner of the eligible land 
                of--
                            ``(i) the determination of the Secretary; 
                        and
                            ``(ii) the right of the owner to appeal the 
                        determination.
                    ``(D) Partition with consent of eligible indian 
                tribe.--If the Secretary determines that a parcel of 
                eligible land may be partitioned in a manner that is 
                fair and equitable to the owners of the eligible land, 
                and the applicable eligible Indian tribe meets the 
                applicable ownership requirements under subparagraph 
                (A) or (B) of paragraph (3), the Secretary shall--
                            ``(i) approve a plan of partition;
                            ``(ii) provide notice to the owners of the 
                        eligible land of the determination of the 
                        Secretary;
                            ``(iii) make a copy of the plan of 
                        partition available to each owner of the 
                        eligible land; and
                            ``(iv) inform each owner of the right to 
                        appeal the determination of the Secretary to 
                        partition the eligible land in accordance with 
                        the plan.
                    ``(E) Partition with consent; implied consent.--If 
                the Secretary determines that a parcel of eligible land 
                may be partitioned in a manner that is fair and 
                equitable to the owners of the eligible land, but the 
                eligible Indian tribe involved does not meet the 
                applicable ownership requirements under subparagraph 
                (A) or (B) of paragraph (3), the Secretary shall--
                            ``(i)(I) make a plan of partition available 
                        to the owners of the parcel; and
                            ``(II) inform the owners that the eligible 
                        land will be partitioned in accordance with the 
                        plan if the owners of 50 percent or more of 
                        undivided ownership interest in the eligible 
                        land--
                                    ``(aa) consent to the partition; or
                                    ``(bb) do not object to the 
                                partition by such date as may be 
                                established by the Secretary; and
                            ``(ii)(I) if the owners of 50 percent or 
                        more of undivided ownership interest in the 
                        eligible land consent to the partition or do 
                        not object by a date established by the 
                        Secretary under clause (i)(II)(bb), inform the 
                        owners of the eligible land that--
                                    ``(aa) the plan for partition is 
                                final; and
                                    ``(bb) the owners have the right to 
                                appeal the determination of the 
                                Secretary to partition the eligible 
                                land; or
                            ``(II) if the owners of 50 percent or more 
                        of the undivided ownership interest in the 
                        eligible land object to the partition, inform 
                        the eligible Indian tribe of the objection.
                    ``(F) Successive partition plans.--In carrying out 
                subparagraph (E) in accordance with paragraph (3)(C), 
                the Secretary may, in accordance with subparagraph 
                (E)--
                            ``(i) approve 1 or more successive plans of 
                        partition; and
                            ``(ii) make those plans available to the 
                        owners of the eligible land to be partitioned.
                    ``(G) Plan of partition.--A plan of partition 
                approved by the Secretary in accordance with 
                subparagraph (D) or (E)--
                            ``(i) may determine that 1 or more of the 
                        undivided interests in a parcel of eligible 
                        land are not susceptible to a partition in 
                        kind;
                            ``(ii) may provide for the sale or exchange 
                        of those undivided interests to--
                                    ``(I) 1 or more of the owners of 
                                undivided interests in the eligible 
                                land; or
                                    ``(II) the Secretary in accordance 
                                with section 213; and
                            ``(iii) shall provide that the sale of any 
                        undivided interest referred to in clause (ii) 
                        shall be for not less than the fair market 
                        value of the interest.
            ``(7) Partition by sale.--
                    ``(A) In general.--The Secretary shall commence the 
                partition process described in subparagraph (B) if--
                            ``(i) an eligible Indian tribe applies to 
                        partition a parcel of eligible land under this 
                        subsection; and
                            ``(ii)(I) the Secretary determines that the 
                        Indian tribe meets the applicable ownership 
                        requirements of subparagraph (A) or (B) of 
                        paragraph (3); or
                            ``(II) the Secretary determines that it is 
                        reasonable to believe that the partition would 
                        be in accordance with paragraph (3)(C).
                    ``(B) Partition process.--In carrying out any 
                partition of eligible land under this paragraph, the 
                Secretary--
                            ``(i) shall conduct a preliminary appraisal 
                        of the eligible land;
                            ``(ii) shall provide to the owners of the 
                        eligible land, through publication or other 
                        appropriate means--
                                    ``(I) notice of the application of 
                                the eligible Indian tribe to partition 
                                the eligible land; and
                                    ``(II) access to the preliminary 
                                appraisal conducted in accordance with 
                                clause (i);
                            ``(iii) shall inform each owner of the 
                        eligible land of the right to submit to the 
                        Secretary comments relating to the preliminary 
                        appraisal;
                            ``(iv) may, based on comments received 
                        under clause (iii), modify the preliminary 
                        appraisal or provide for the conduct of a new 
                        appraisal; and
                            ``(v) shall--
                                    ``(I) issue a final appraisal for 
                                the eligible land;
                                    ``(II) provide to the owners of the 
                                eligible land and the appropriate 
                                Indian tribes access to the final 
                                appraisal; and
                                    ``(III) inform the Indian tribes of 
                                the right to appeal the final 
                                appraisal.
                    ``(C) Purchase by eligible indian tribe.--If an 
                eligible Indian tribe enters into an agreement with the 
                Secretary to pay fair market value for eligible land 
                partitioned under this subsection, as determined by the 
                final appraisal of the eligible land issued under 
                subparagraph (B)(v)(I) (including any appraisal issued 
                by the Secretary after an appeal by the Indian tribe 
                under subparagraph (B)(v)(III)), and the eligible 
                Indian tribe meets the applicable ownership 
                requirements of subparagraph (A) or (B) of paragraph 
                (3), the Secretary shall--
                            ``(i) provide to each owner of the eligible 
                        land notice of the agreement; and
                            ``(ii) inform the owners of the right to 
                        appeal the decision of the Secretary to enter 
                        into the agreement (including the right to 
                        appeal any final appraisal of the parcel 
                        referred to in subparagraph (B)(v)(III)).
                    ``(D) Partition with consent; implied consent.--
                            ``(i) In general.--If an eligible Indian 
                        tribe agrees to pay fair market value for 
                        eligible land partitioned under this 
                        subsection, as determined by the final 
                        appraisal of the eligible land issued under 
                        subparagraph (B)(v)(I) (including any appraisal 
                        issued by the Secretary after an appeal by the 
                        Indian tribe under subparagraph (B)(v)(III)), 
                        but does not meet the applicable ownership 
                        requirements of subparagraph (A) or (B) of 
                        paragraph (3), the Secretary shall--
                                    ``(I) provide to each owner of the 
                                undivided interest in the eligible land 
                                notice that the Indian tribe did not 
                                meet the requirements; and
                                    ``(II) inform the owners that the 
                                eligible land will be partitioned by 
                                sale unless the partition is opposed by 
                                the owners of 50 percent or more of the 
                                undivided ownership interest in the 
                                eligible land.
                            ``(ii) Failure to object to partition.--If 
                        the owners of 50 percent or more of undivided 
                        ownership interest in or to a parcel of 
                        eligible land consent to the partition of the 
                        eligible land, or do not object to the 
                        partition by such date as may be established by 
                        the Secretary, the Secretary shall inform the 
                        owners of the eligible land of the right to 
                        appeal the determination of the Secretary to 
                        partition the eligible land (including the 
                        results of the final appraisal issued under 
                        subparagraph (B)(v)(I)).
                            ``(iii) Objection to partition.--If the 
                        owners of 50 percent or more of the undivided 
                        ownership interest in a parcel of eligible land 
                        object to the partition of the eligible land--
                                    ``(I) the Secretary shall notify 
                                the eligible Indian tribe of the 
                                objection; and
                                    ``(II) the eligible Indian tribe 
                                and the Secretary may agree to increase 
                                the amount offered to purchase the 
                                undivided ownership interests in the 
                                eligible land.
            ``(8) Enforcement.--
                    ``(A) In general.--If, with respect to a parcel of 
                eligible land, a partition in kind is approved under 
                subparagraph (D) or (E) of paragraph (6), or a 
                partition by sale is approved under paragraph (7)(C), 
                and the owner of an interest in or to the eligible land 
                fails to convey the interest to the Indian tribe, the 
                Indian tribe or the United States may--
                            ``(i) bring a civil action in the United 
                        States district court for the district in which 
                        the eligible land is located; and
                            ``(ii) request the court to issue an 
                        appropriate order for the partition in kind, or 
                        partition by sale to the Indian tribe, of the 
                        eligible land.
                    ``(B) Federal role.--With respect to any civil 
                action brought under subparagraph (A)--
                            ``(i) the United States--
                                    ``(I) shall receive notice of the 
                                civil action; and
                                    ``(II) may be a party to the civil 
                                action; and
                            ``(ii) the civil action shall not be 
                        dismissed, and no relief requested shall be 
                        denied, on the ground that the civil action is 
                        against the United States or that the United 
                        States is an indispensable party.''.

SEC. 5. 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 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 
        prevents the devise of an interest in trust or restricted land 
        to--
                    ``(A) an Indian lineal descendant of the original 
                allottee; or
                    ``(B) an Indian who is not a member of the Indian 
                tribe that exercises 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; 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 designated by 
                                clause (i)), by striking ``section 
                                207(a)(6)(A) of this title'' and 
                                inserting ``section 207(a)(2)(A)(ii), 
                                207(a)(2)(C), or 207(a)(3)''; 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 apply'' 
                                        and inserting the following:
                    ``(A) Nonapplicability to certain interests.--
                            ``(i) In general.--Paragraph (1) shall not 
                        apply'';
                                            (bb) in clause (i) (as 
                                        designated by item (a)), 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 that exercises 
                                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.''; and
                                    (II) in subparagraph (B), by 
                                striking ``subparagraph (A)'' and all 
                                that follows through ``207(a)(6)(B) of 
                                this title'' and inserting ``paragraph 
                                (1)'';
            (3) in section 207 (25 U.S.C. 2206)--
                    (A) in subsection (c)--
                            (i) by redesignating paragraph (3) as 
                        paragraph (4); and
                            (ii) by inserting after paragraph (2) the 
                        following:
            ``(3) Alienation of joint tenancy interests.--
                    ``(A) In general.--With respect to any interest 
                held in joint tenancy in accordance with this 
                subsection--
                            ``(i) nothing in this subsection alters the 
                        ability of an owner of such an interest to 
                        convey a life estate in the undivided joint 
                        tenancy interest of the owner; and
                            ``(ii) only the last remaining owner of 
                        such an interest may devise or convey more than 
                        a life estate in the interest.
                    ``(B) Application of provision.--This paragraph 
                shall not apply--
                            ``(i) to any conveyance, sale, or transfer 
                        that is part of an agreement referred to in 
                        subsection (e); or
                            ``(ii) to a co-owner of a joint tenancy 
                        interest.''; and
                    (B) in subsection (g)(5), by striking ``this 
                section'' and inserting ``subsections (a) and (b)'';
            (4) in section 213 (25 U.S.C. 2212)--
                    (A) in subsection (a)(2), by striking ``(A) In 
                general.--'' and all that follows through ``the 
                Secretary shall submit'' and inserting ``The Secretary 
                shall submit'';
                    (B) 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.''; and
                    (C) in subsection (c)--
                            (i) in paragraph (1)--
                                    (I) 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
                                    (II) 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 of more of the undivided interests'' 
                        and inserting ``an undivided interest'';
            (5) 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 Pilot 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) or (4).
            ``(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 lien 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) Other removal of lien.--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.'';
            (6) 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.'';
            (7) in section 217 (25 U.S.C. 2216)--
                    (A) 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
                    (B) 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 that 
        exercises 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--
                            ``(i) the interest is offered for sale to 
                        an entity that is not a member of the family of 
                        the landowner; and
                            ``(ii) the Indian tribe that exercises 
                        jurisdiction over the land is afforded the 
                        opportunity to purchase the interest.
                    ``(B) Applicability.--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
            (8) in section 219(b)(1)(A) (25 U.S.C. 2218(b)(1)(A)), by 
        striking ``100'' and inserting ``90''.
    (b) Definition.--
            (1) In general.--Section 202 of the Indian Land 
        Consolidation Act (25 U.S.C. 2201) is amended by striking 
        paragraph (2) and inserting the following:
            ``(2) Indian.--
                    ``(A) In general.--The term `Indian' means--
                            ``(i) any person that is a member of any 
                        Indian tribe or is eligible to become a member 
                        of any Indian tribe;
                            ``(ii) subject to subparagraph (B), any 
                        person that has been found to meet the 
                        definition of `Indian' under any Federal law; 
                        and
                            ``(iii) with respect to the ownership, 
                        devise, or descent of trust or restricted land 
                        in the State of California, any person that 
                        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)).
                    ``(B) Exclusions.--The term `Indian' does not 
                include any person excluded from a definition described 
                in subparagraph (A)(ii) by a regulation promulgated by 
                the Secretary in a case in which the Secretary 
                determines that the definition is not consistent with 
                the purposes of this Act, unless the definition 
                described in subparagraph (A)(ii) is contained in a law 
                relating to--
                            ``(i) agriculture;
                            ``(ii) cultural resources;
                            ``(iii) economic development;
                            ``(iv) grazing;
                            ``(v) housing;
                            ``(vi) Indian schools;
                            ``(vii) natural resources;
                            ``(viii) any other program with benefits 
                        intended to run to Indian landowners; or
                            ``(ix) any land-related program that takes 
                        effect after the date of enactment of this 
                        subparagraph.''.
            (2) Applicability.--Any exclusion referred to in the 
        amendment made by paragraph (1) shall apply only to a decedent 
        who dies after the date on which the Secretary of the Interior 
        promulgates a regulation providing for the exclusion.
    (c) Mortgages and Deeds of Trust.--The Act of March 29, 1956 (25 
U.S.C. 483a), is amended in the first sentence of subsection (a) by 
inserting after ``any land'' the following: ``(including land owned by 
any person in passive trust status in accordance with section 207A of 
the Indian Land Consolidation Act)''.
    (d) 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:''.
    (e) 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 
striking ``, in accordance with'' and all that follows through the 
colon and 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):''.

SEC. 6. INHERITANCE OF CERTAIN TRUST OR RESTRICTED LAND.

    (a) In General.--Section 5 of Public Law 98-513 (98 Stat. 2413) is 
amended to read as follows:

``SEC. 5. INHERITANCE OF CERTAIN TRUST OR RESTRICTED LAND.

    ``(a) In General.--Notwithstanding any other provision of this 
Act--
            ``(1) the owner of an interest in trust or restricted land 
        within the reservation may not devise an interest (including a 
        life estate under section 4) in the land that is less than 2.5 
        acres to more than 1 tribal member unless each tribal member 
        already holds an interest in that land; and
            ``(2) any interest in trust or restricted land within the 
        reservation that is less than 2.5 acres that would otherwise 
        pass by intestate succession (including a life estate in the 
        land under section 4), or that is devised to more than 1 tribal 
        member that is not described in paragraph (1), shall revert to 
        the Indian tribe, to be held in the name of the United States 
        in trust for the Indian tribe.
    ``(b) Notice.--
            ``(1) In general.--Not later than 180 days after the date 
        of enactment of the Indian Probate Reform Act of 2003, the 
        Secretary shall provide notice to owners of trust or restricted 
        land within the Lake Traverse Reservation of the provisions of 
        this section by--
                    ``(A) direct mail;
                    ``(B) publication in the Federal Register; or
                    ``(C) publication in local newspapers.
            ``(2) Certification.--After providing notice under 
        paragraph (1), the Secretary shall--
                    ``(A) certify that the requirements of this 
                subsection have been met; and
                    ``(B) shall publish notice of that certification in 
                the Federal Register.''.
    (b) Applicability.--This section and the amendment made by this 
section shall not apply with respect to the estate of any person who 
dies before the date that is 1 year after the date on which the 
Secretary makes the required certification under section 5(b) of Public 
Law 98-513 (98 Stat. 2413) (as amended by subsection (a)).

SEC. 7. 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>