[Congressional Bills 110th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3994 Introduced in House (IH)]







110th CONGRESS
  1st Session
                                H. R. 3994

To amend the Indian Self-Determination and Education Assistance Act to 
    provide further self-governance by Indian tribes, and for other 
                               purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                            October 30, 2007

  Mr. Boren (for himself, Mr. Rahall, and Mr. Pallone) introduced the 
    following bill; which was referred to the Committee on Natural 
                               Resources

_______________________________________________________________________

                                 A BILL


 
To amend the Indian Self-Determination and Education Assistance Act to 
    provide further self-governance by Indian tribes, 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 ``Department of the Interior Tribal 
Self-Governance Act of 2007''.

SEC. 2. TRIBAL SELF-GOVERNANCE.

    Title IV of the Indian Self-Determination and Education Assistance 
Act (25 U.S.C. 450 et seq.) is amended to read as follows:

                   ``TITLE IV--TRIBAL SELF-GOVERNANCE

``SEC. 401. DEFINITIONS.

    ``In this title:
            ``(1) Compact.--The term `compact' means a self-governance 
        compact entered into under section 404.
            ``(2) Construction program.--The term `construction 
        program' or `construction project' means a tribal undertaking 
        relating to the administration, planning, environmental 
        determination, design, construction, repair, improvement, or 
        expansion of roads, bridges, buildings, structures, systems or 
        other facilities for purposes of housing, law enforcement, 
        detention, sanitation, water supply, education, administration, 
        community, health, irrigation, agriculture, conservation, flood 
        control, transportation, or port facilities, or for other 
        tribal purposes.
            ``(3) Department.--The term `Department' means the 
        Department of the Interior.
            ``(4) Funding agreement.--The term `funding agreement' 
        means a funding agreement entered into under section 405(b).
            ``(5) Gross mismanagement.--The term `gross mismanagement' 
        means a significant violation, shown by clear and convincing 
        evidence, of a compact, funding agreement, or statutory or 
        regulatory requirement applicable to Federal funds transferred 
        to an Indian tribe under a compact or funding agreement that 
        results in a significant reduction of funds available for the 
        programs assumed by an Indian tribe.
            ``(6) Program.--The term `program' means any program, 
        function, service, or activity (or portion thereof) within the 
        Department of the Interior that is included in a funding 
        agreement.
            ``(7) Indian tribe.--The term `Indian tribe', in a case in 
        which an Indian tribe authorizes another Indian tribe or a 
        tribal organization to plan for or carry out a program on its 
        behalf in accordance with section 403(a)(2), includes the other 
        authorized Indian tribe or tribal organization.
            ``(8) Inherent federal function.--The term `inherent 
        Federal function' means a Federal function that cannot legally 
        be delegated to an Indian tribe.
            ``(9) Secretary.--The term `Secretary' means the Secretary 
        of the Interior.
            ``(10) Self-governance.--The term `self-governance' means 
        the program of self-governance established under section 402.
            ``(11) Tribal share.--The term `tribal share' means an 
        Indian tribe's portion of all funds and resources that support 
        Secretarial programs that are not required by the Secretary for 
        the performance of inherent Federal functions.

``SEC. 402. ESTABLISHMENT.

    ``The Secretary shall carry out a program within the Department to 
be known as the `Tribal Self-Governance Program.'.

``SEC. 403. SELECTION OF PARTICIPATING INDIAN TRIBES.

    ``(a) In General.--
            ``(1) Participants.--
                    ``(A) The Secretary, acting through the Director of 
                the Office of Self-Governance, may select up to 50 new 
                Indian tribes per year from those eligible under 
                subsection (b) to participate in self-governance.
                    ``(B) If each Indian tribe requests, two or more 
                otherwise eligible Indian tribes may be treated as a 
                single Indian tribe for the purpose of participating in 
                Self-Governance.
            ``(2) Other authorized indian tribe or tribal 
        organization.--If an Indian tribe authorizes another Indian 
        tribe or a tribal organization to plan for or carry out a 
        program on its behalf under this title, the authorized Indian 
        tribe or tribal organization shall have the rights and 
        responsibilities of the authorizing Indian tribe (except as 
        otherwise provided in the authorizing resolution).
            ``(3) Joint participation.--Two or more Indian tribes that 
        are not otherwise eligible under subsection (b) may be treated 
        as a single Indian tribe for the purpose of participating in 
        self-governance as a tribal organization if--
                    ``(A) each Indian tribe so requests; and
                    ``(B) the tribal organization itself or at least 
                one of the tribes participating in the tribal 
                organization is eligible under subsection (b).
            ``(4) Tribal withdrawal from a tribal organization.--
                    ``(A) In general.--An Indian tribe that withdraws 
                from participation in a tribal organization, in whole 
                or in part, shall be entitled to participate in self-
                governance if the Indian tribe is eligible under 
                subsection (b).
                    ``(B) Effect of withdrawal.--If an Indian tribe 
                withdraws from participation in a tribal organization, 
                the Indian tribe shall be entitled to its tribal share 
                of funds and resources supporting the programs that the 
                Indian tribe is entitled to carry out under the compact 
                and funding agreement of the Indian tribe.
                    ``(C) Participation in self-governance.--The 
                withdrawal of an Indian tribe from a tribal 
                organization shall not affect the eligibility of the 
                tribal organization to participate in self-governance 
                on behalf of one or more other Indian tribes.
                    ``(D) Withdrawal process.--
                            ``(i) In general.--An Indian tribe may, by 
                        tribal resolution, fully or partially withdraw 
                        its tribal share of any program in a funding 
                        agreement from a participating tribal 
                        organization.
                            ``(ii) Effective date.--
                                    ``(I) In general.--A withdrawal 
                                under clause (i) shall become effective 
                                on the date specified in the tribal 
                                resolution.
                                    ``(II) No specified date.--In the 
                                absence of a date specified in the 
                                resolution, the withdrawal shall become 
                                effective on--
                                            ``(aa) the earlier of--

                                                    ``(AA) 1 year after 
                                                the date of submission 
                                                of the request; or

                                                    ``(BB) the date on 
                                                which the funding 
                                                agreement expires; or

                                            ``(bb) such date as may be 
                                        mutually agreed upon by the 
                                        Secretary, the withdrawing 
                                        Indian tribe, and the tribal 
                                        organization that signed the 
                                        compact and funding agreement 
                                        on behalf of the withdrawing 
                                        Indian tribe or tribal 
                                        organization.
                    ``(E) Distribution of funds.--If an Indian tribe or 
                tribal organization eligible to enter into a self-
                determination contract under title I or a compact or 
                funding agreement under this title fully or partially 
                withdraws from a participating tribal organization, the 
                withdrawing Indian tribe--
                            ``(i) may elect to enter a self-
                        determination contract or compact, in which 
                        case--
                                    ``(I) the withdrawing Indian tribe 
                                or tribal organization shall be 
                                entitled to its tribal share of 
                                unexpended funds and resources 
                                supporting the programs that the Indian 
                                tribe will be carrying out under its 
                                own self-determination contract or 
                                compact and funding agreement 
                                (calculated on the same basis as the 
                                funds were initially allocated to the 
                                funding agreement of the tribal 
                                organization); and
                                    ``(II) the funds referred to in 
                                subclause (I) shall be withdrawn by the 
                                Secretary from the funding agreement of 
                                the tribal organization and transferred 
                                to the withdrawing Indian tribe, on the 
                                condition that the provisions of 
                                sections 102 and 105(i), as 
                                appropriate, shall apply to the 
                                withdrawing Indian tribe; or
                            ``(ii) may elect not to enter a self-
                        determination contract or compact, in which 
                        case all funds not obligated by the tribal 
                        organization associated with the withdrawing 
                        Indian tribe's returned programs, less close-
                        out costs, shall be returned by the tribal 
                        organization to the Secretary for operation of 
                        the programs included in the withdrawal.
                    ``(F) Return to mature contract status.--If an 
                Indian tribe elects to operate all or some programs 
                carried out under a compact or funding agreement under 
                this title through a self-determination contract under 
                title I, at the option of the Indian tribe, the 
                resulting self-determination contract shall be a mature 
                self-determination contract as defined in section 4(h) 
                of this Act.
    ``(b) Eligibility.--To be eligible to participate in self-
governance, an Indian tribe shall--
            ``(1) successfully complete the planning phase described in 
        subsection (c);
            ``(2) request participation in self-governance by 
        resolution or other official action by the tribal governing 
        body; and
            ``(3) demonstrate, for the 3 fiscal years preceding the 
        date on which the Indian tribe requests participation, 
        financial stability and financial management capability as 
        evidenced by the Indian tribe having no uncorrected significant 
        and material audit exceptions in the required annual audit of 
        its self-determination or self-governance agreements with any 
        Federal agency.
    ``(c) Planning Phase.--
            ``(1) In general.--An Indian tribe seeking to begin 
        participation in Self-Governance shall complete a planning 
        phase in accordance with this subsection.
            ``(2) Activities.--The planning phase--
                    ``(A) shall be conducted to the satisfaction of the 
                Indian tribe; and
                    ``(B) shall include--
                            ``(i) legal and budgetary research; and
                            ``(ii) internal tribal government planning 
                        and organizational preparation.
    ``(d) Grants.--
            ``(1) In general.--Subject to the availability of 
        appropriations, an Indian tribe or tribal organization that 
        meets the requirements of paragraphs (2) and (3) of subsection 
        (b) shall be eligible for grants--
                    ``(A) to plan for participation in self-governance; 
                and
                    ``(B) to negotiate the terms of participation by 
                the Indian tribe or tribal organization in self-
                governance, as set forth in a compact and a funding 
                agreement.
            ``(2) Receipt of grant not required.--Receipt of a grant 
        under paragraph (1) shall not be a requirement of participation 
        in self-governance.

``SEC. 404. COMPACTS.

    ``(a) In General.--The Secretary shall negotiate and enter into a 
written compact with each Indian tribe participating in self-governance 
in a manner consistent with the trust responsibility of the Federal 
Government, treaty obligations, and the government-to-government 
relationship between Indian tribes and the United States.
    ``(b) Contents.--A compact under subsection (a) shall--
            ``(1) specify and affirm the general terms of the 
        government-to-government relationship between the Indian tribe 
        and the Secretary, and
            ``(2) include such terms as the parties intend shall 
        control during the term of the compact.
    ``(c) Amendment.--A compact under subsection (a) may be amended 
only by agreement of the parties.
    ``(d) Effective Date.--The effective date of a compact under 
subsection (a) shall be--
            ``(1) the date of the execution of the compact by the 
        parties; or
            ``(2) another date agreed upon by the parties.
    ``(e) Duration.--A compact under subsection (a) shall remain in 
effect for so long as permitted by Federal law or until termination by 
written agreement, retrocession, or reassumption.
    ``(f) Existing Compacts.--An Indian tribe participating in self-
governance under this title, as in effect on the date of the enactment 
of the Department of the Interior Tribal Self-Governance Act of 2007, 
shall have the option at any time after that date--
            ``(1) to retain its negotiated compact (in whole or in 
        part) to the extent that the provisions of the compact are not 
        directly contrary to any express provision of this title; or
            ``(2) to negotiate a new compact in a manner consistent 
        with this title.

``SEC. 405. FUNDING AGREEMENTS.

    ``(a) In General.--The Secretary shall negotiate and enter into a 
written funding agreement with the governing body of an Indian tribe or 
tribal organization in a manner consistent with the trust 
responsibility of the Federal Government, treaty obligations, and the 
government-to-government relationship between Indian tribes and the 
United States.
    ``(b) Included Programs.--
            ``(1) Bureau of indian affairs and office of special 
        trustee.--
                    ``(A) In general.--A funding agreement shall, as 
                determined by the Indian tribe, authorize the Indian 
                tribe to plan, conduct, consolidate, administer, and 
                receive full tribal share funding for all programs 
                carried out by the Bureau of Indian Affairs and Office 
                of Special Trustee, without regard to the agency or 
                office within which the program is performed (including 
                funding for agency, area, and central office functions 
                in accordance with subsection 409(c)), that--
                            ``(i) are provided for in the Act of April 
                        16, 1934 (25 U.S.C. 452 et seq.);
                            ``(ii) the Secretary administers for the 
                        benefit of Indians under the Act of November 2, 
                        1921 (25 U.S.C. 13), or any subsequent Act;
                            ``(iii) the Secretary administers for the 
                        benefit of Indians with appropriations made to 
                        agencies other than the Department of the 
                        Interior; or
                            ``(iv) are provided for the benefit of 
                        Indians because of their status as Indians.
                    ``(B) Inclusions.--Programs described in 
                subparagraph (A) shall include all programs with 
                respect to which Indian tribes or Indians are primary 
                or significant beneficiaries.
            ``(2) Other agencies.--
                    ``(A) In general.--A funding agreement under 
                subsection (a) shall, as determined by the Indian 
                tribe, authorize the Indian tribe to plan, conduct, 
                consolidate, administer, and receive full tribal share 
                funding for all programs carried out by the Secretary 
                outside of the Bureau of Indian Affairs, without regard 
                to the agency or office within which the program is 
                performed, including funding for agency, area, and 
                central office functions in accordance with subsection 
                409(c). The programs within the scope of this 
                subparagraph are those provided for the benefit of 
                Indians because of their status as Indians, or those 
                programs with respect to which Indian tribes or Indians 
                are primary or significant beneficiaries.
                    ``(B) Federally reserved rights.--Programs 
                described in subparagraph (A) shall include, at the 
                option of the tribe, all programs (or portions thereof) 
                that restore, maintain or preserve a resource (for 
                example fisheries, wildlife, water, or minerals) in 
                which an Indian tribe has a federally reserved right, 
                as quantified by a Federal court. The Secretary shall 
                make available a proportional share of the funding of 
                such a program (or portion thereof) that the Secretary 
                would otherwise provide to restore, maintain or 
                preserve such a resource in an amount equal to the 
                proportional share of the resource that is associated 
                with the tribe's federally reserved right.
            ``(3) Discretionary programs.--A funding agreement under 
        subsection (a) may, in accordance with such additional terms as 
        the parties consider to be appropriate, include programs 
        administered by the Secretary, in addition to programs 
        described in paragraphs (1) and (2), that are of special 
        geographic, historical, or cultural significance to the Indian 
        tribe.
            ``(4) Competitive bidding.--Nothing in this section--
                    ``(A) supersedes any express statutory requirement 
                for competitive bidding; or
                    ``(B) prohibits the inclusion in a funding 
                agreement of a program in which non-Indians have an 
                incidental or legally identifiable interest.
            ``(5) Excluded funding.--A funding agreement shall not 
        authorize an Indian tribe to plan, conduct, administer, or 
        receive tribal share funding under any program that--
                    ``(A) is provided under the Tribally Controlled 
                Community College Assistance Act of 1978 (25 U.S.C. 
                1801 et seq.); and
                    ``(B) is provided for elementary and secondary 
                schools under the formula developed under section 1128 
                of the Educational Amendments of 1978 (25 U.S.C. 2008).
            ``(6) Services, functions, and responsibilities.--A funding 
        agreement shall specify--
                    ``(A) the services to be provided under the funding 
                agreement;
                    ``(B) the functions to be performed under the 
                funding agreement; and
                    ``(C) the responsibilities of the Indian tribe and 
                the Secretary under the funding agreement.
            ``(7) Base budget.--A funding agreement shall, at the 
        option of the Indian tribe, provide for a stable base budget 
        specifying the recurring funds (including funds available under 
        section 106(a)) to be transferred to the Indian tribe, for such 
        period as the Indian tribe specifies in the funding agreement, 
        subject to annual adjustment only to reflect changes in 
        congressional appropriations.
            ``(8) No waiver of trust responsibility.--A funding 
        agreement shall prohibit the Secretary from waiving, modifying, 
        or diminishing in any way the trust responsibility of the 
        United States with respect to Indian tribes and individual 
        Indians that exists under treaties, Executive orders, court 
        decisions, and other laws.
    ``(c) Amendment.--The Secretary shall not revise, amend, or require 
additional terms in a new or subsequent funding agreement without the 
consent of the Indian tribe.
    ``(d) Effective Date.--A funding agreement shall become effective 
on the date specified in the funding agreement.
    ``(e) Existing and Subsequent Funding Agreements.--
            ``(1) Subsequent funding agreements.--Absent notification 
        from an Indian tribe that it is withdrawing or retroceding the 
        operation of one or more programs identified in a funding 
        agreement, or unless otherwise agreed to by the parties to the 
        funding agreement--
                    ``(A) a funding agreement shall remain in effect 
                until a subsequent funding agreement is executed; and
                    ``(B) the term of the subsequent funding agreement 
                shall be retroactive to the end of the term of the 
                preceding funding agreement for the purposes of 
                calculating the amount of funding to which the Indian 
                tribe is entitled.
            ``(2) Existing funding agreements.--An Indian tribe that 
        was participating in self-governance under this title on the 
        date of enactment of the Department of the Interior Tribal 
        Self-Governance Act of 2007 shall have the option at any time 
        after that date--
                    ``(A) to retain its existing funding agreement (in 
                whole or in part) to the extent that the provisions of 
                that funding agreement are not directly contrary to any 
                express provision of this title; or
                    ``(B) to negotiate a new funding agreement in a 
                manner consistent with this title.
            ``(3) Multi-year funding agreements.--An Indian tribe may, 
        at the discretion of the Indian tribe, negotiate with the 
        Secretary for a funding agreement with a term that exceeds one 
        year.

``SEC. 406. GENERAL PROVISIONS.

    ``(a) Applicability.--An Indian tribe may include in any compact or 
funding agreement provisions that reflect the requirements of this 
title.
    ``(b) Conflicts of Interest.--An Indian tribe participating in 
self-governance shall ensure that internal measures are in place to 
address, pursuant to tribal law and procedures, conflicts of interest 
in the administration of programs.
    ``(c) Audits.--
            ``(1) Single agency audit act.--Chapter 75 of title 31, 
        United States Code, shall apply to a funding agreement under 
        this title.
            ``(2) Cost principles.--An Indian tribe shall apply cost 
        principles under the applicable Office of Management and Budget 
        circular, except as modified by--
                    ``(A) any provision of law, including section 106 
                of this Act; or
                    ``(B) any exemptions to applicable Office of 
                Management and Budget circulars subsequently granted by 
                the Office of Management and Budget.
            ``(3) Federal claims.--Any claim by the Federal Government 
        against the Indian tribe relating to funds received under a 
        funding agreement based on any audit under this subsection 
        shall be subject to the provisions of section 106(f).
    ``(d) Redesign and Consolidation.--An Indian tribe may redesign or 
consolidate programs or reallocate funds for programs in any manner 
that the Indian tribe deems to be in the best interest of the Indian 
community being served, so long as the redesign or consolidation does 
not have the effect of denying eligibility for services to population 
groups otherwise eligible to be served under applicable Federal law.
    ``(e) Retrocession.--
            ``(1) In general.--An Indian tribe may fully or partially 
        retrocede to the Secretary any program under a compact or 
        funding agreement.
            ``(2) Effective date.--
                    ``(A) Agreement.--Unless the Indian tribe rescinds 
                the request for retrocession, such retrocession shall 
                become effective on the date specified by the parties 
                in the compact or funding agreement.
                    ``(B) No agreement.--In the absence of a 
                specification of an effective date in the compact or 
                funding agreement, the retrocession shall become 
                effective on--
                            ``(i) the earlier of--
                                    ``(I) one year after the date of 
                                submission of such request; or
                                    ``(II) the date on which the 
                                funding agreement expires; or
                            ``(ii) such date as may be mutually agreed 
                        upon by the Secretary and the Indian tribe.
    ``(f) Nonduplication.--A funding agreement shall provide that, for 
the period for which, and to the extent to which, funding is provided 
to an Indian tribe under this title, the Indian tribe--
            ``(1) shall not be entitled to contract with the Secretary 
        for funds under section 102, except that such Indian tribe 
        shall be eligible for new programs on the same basis as other 
        Indian tribes; and
            ``(2) shall be responsible for the administration of 
        programs in accordance with the compact or funding agreement.
    ``(g) Records.--
            ``(1) In general.--Unless an Indian tribe specifies 
        otherwise in the compact or funding agreement, records of an 
        Indian tribe shall not be considered Federal records for 
        purposes of chapter 5 of title 5, United States Code.
            ``(2) Recordkeeping system.--An Indian tribe shall--
                    ``(A) maintain a recordkeeping system; and
                    ``(B) on 30 days' notice, provide the Secretary 
                with reasonable access to the records to enable the 
                Department to meet the requirements of sections 3101 
                through 3106 of title 44, United States Code.

``SEC. 407. PROVISIONS RELATED TO THE SECRETARY.

    ``(a) Trust Evaluations.--A funding agreement shall include a 
provision to monitor the performance of trust functions by the Indian 
tribe through the annual trust evaluation.
    ``(b) Reassumption.--
            ``(1) In general.--A compact or funding agreement shall 
        include provisions for the Secretary to reassume a program and 
        associated funding if there is a specific finding relating to 
        that program of--
                    ``(A) imminent jeopardy to a physical trust asset, 
                natural resources, or public health and safety that--
                            ``(i) is caused by an act or omission of 
                        the Indian tribe; and
                            ``(ii) arises out of a failure to carry out 
                        the compact or funding agreement; or
                    ``(B) gross mismanagement with respect to funds 
                transferred to an Indian tribe under a compact or 
                funding agreement, as determined by the Secretary in 
                consultation with the Inspector General, as 
                appropriate.
            ``(2) Prohibition.--The Secretary shall not reassume 
        operation of a program in whole or part unless--
                    ``(A) the Secretary first provides written notice 
                and a hearing on the record to the Indian tribe; and
                    ``(B) the Indian tribe does not take corrective 
                action to remedy gross mismanagement of the funds or 
                the imminent jeopardy to a physical trust asset, 
                natural resource, or public health and safety.
            ``(3) Exception.--
                    ``(A) In general.--Notwithstanding paragraph (2), 
                the Secretary may, on written notice to the Indian 
                tribe, immediately reassume operation of a program if--
                            ``(i) the Secretary makes a finding of both 
                        imminent and substantial jeopardy and 
                        irreparable harm to a physical trust asset, a 
                        natural resource, or the public health and 
                        safety caused by an act or omission of the 
                        Indian tribe; and
                            ``(ii) the imminent and substantial 
                        jeopardy, and irreparable harm to the physical 
                        trust asset, natural resource, or public health 
                        and safety arises out of a failure by the 
                        Indian tribe to carry out its compact or 
                        funding agreement.
                    ``(B) Reassumption.--If the Secretary reassumes 
                operation of a program under subparagraph (A), the 
                Secretary shall provide the Indian tribe with a hearing 
                on the record not later than 10 days after the date of 
                reassumption.
    ``(c) Inability To Agree on Compact or Funding Agreement.--
            ``(1) Final offer.--If the Secretary and a participating 
        Indian tribe are unable to agree, in whole or in part, on the 
        terms of a compact or funding agreement (including funding 
        levels), the Indian tribe may submit a final offer to the 
        Secretary.
            ``(2) Determination.--Not more than 45 days after the date 
        of submission of a final offer, or as otherwise agreed to by 
        the Indian tribe, the Secretary shall review and make a 
        determination with respect to the final offer.
            ``(3) No timely determination.--If the Secretary fails to 
        make a determination with respect to a final offer within the 
        time specified in paragraph (2), the Secretary shall be deemed 
        to have agreed to the offer.
            ``(4) Rejection of final offer.--
                    ``(A) In general.--If the Secretary rejects a final 
                offer (or one or more provisions or funding levels in a 
                final offer), the Secretary shall--
                            ``(i) provide timely written notification 
                        to the Indian tribe that contains a specific 
                        finding that clearly demonstrates, or that is 
                        supported by a controlling legal authority, 
                        that--
                                    ``(I) the amount of funds proposed 
                                in the final offer exceeds the 
                                applicable funding level to which the 
                                Indian tribe is entitled under this 
                                title;
                                    ``(II) the program that is the 
                                subject of the final offer is an 
                                inherent Federal function;
                                    ``(III) the Indian tribe cannot 
                                carry out the program in a manner that 
                                would not result in significant danger 
                                or risk to the public health; or
                                    ``(IV) the Indian tribe is not 
                                eligible to participate in self-
                                governance under section 403(b);
                            ``(ii) provide technical assistance to 
                        overcome the objections stated in the 
                        notification required by clause (i);
                            ``(iii) provide the Indian tribe with a 
                        hearing on the record with the right to engage 
                        in full discovery relevant to any issue raised 
                        in the matter and the opportunity for appeal on 
                        the objections raised (except that the Indian 
                        tribe may, in lieu of filing such appeal, 
                        directly proceed to initiate an action in a 
                        Federal district court under section 110(a)); 
                        and
                            ``(iv) provide the Indian tribe the option 
                        of entering into the severable portions of a 
                        final proposed compact or funding agreement 
                        (including a lesser funding amount, if any), 
                        that the Secretary did not reject, subject to 
                        any additional alterations necessary to conform 
                        the compact or funding agreement to the severed 
                        provisions.
                    ``(B) Effect of exercising certain option.--If an 
                Indian tribe exercises the option specified in 
                subparagraph (A)(iv)--
                            ``(i) the Indian tribe shall retain the 
                        right to appeal the rejection by the Secretary 
                        under this section; and
                            ``(ii) clauses (i), (ii), and (iii) of 
                        subparagraph (A) shall apply only to the 
                        portion of the proposed final compact or 
                        funding agreement that was rejected by the 
                        Secretary.
    ``(d) Burden of Proof.--In any administrative hearing or appeal or 
civil action brought under this section, the Secretary shall have the 
burden of demonstrating by clear and convincing evidence the validity 
of the grounds for rejecting a final offer made under subsection (c) or 
the grounds for a reassumption under subsection (b).
    ``(e) Good Faith.--
            ``(1) In general.--In the negotiation of compacts and 
        funding agreements, the Secretary shall at all times negotiate 
        in good faith to maximize implementation of the self-governance 
        policy.
            ``(2) Policy.--The Secretary shall carry out this title in 
        a manner that maximizes the policy of tribal self-governance.
    ``(f) Savings.--To the extent that programs carried out by Indian 
tribes and tribal organizations under this title reduce the 
administrative or other responsibilities of the Secretary with respect 
to the operation of Indian programs and result in savings that have not 
otherwise been included in the amount of tribal shares and other funds 
determined under section 409(c), the Secretary shall make such savings 
available to the Indian tribes or tribal organizations for the 
provision of additional services to program beneficiaries in a manner 
equitable to directly served, contracted, and compacted programs.
    ``(g) Trust Responsibility.--The Secretary may not waive, modify, 
or diminish in any way the trust responsibility of the United States 
with respect to Indian tribes and individual Indians that exists under 
treaties, Executive orders, other laws, or court decisions.
    ``(h) Decisionmaker.--A decision that constitutes final agency 
action and relates to an appeal within the Department conducted under 
subsection (c)(4) may be made--
            ``(1) by an official of the Department who holds a position 
        at a higher organizational level within the Department than the 
        level of the departmental agency in which the decision that is 
        the subject of the appeal was made; or
            ``(2) by an administrative law judge.
    ``(i) Rules of Construction.--Each provision of this title and each 
provision of a compact or funding agreement shall be liberally 
construed for the benefit of the Indian tribe participating in self-
governance, and any ambiguity shall be resolved in favor of the Indian 
tribe.

``SEC. 408. CONSTRUCTION PROGRAMS AND PROJECTS.

    ``(a) In General.--Nothing in this title shall be construed to 
alter the applicability of the National Environmental Policy Act of 
1969 (42 U.S.C. 4321 et seq.), the National Historic Preservation Act 
(16 U.S.C. 470 et seq.), and related provisions of law to any 
construction project undertaken pursuant to this title.
    ``(b) Negotiations.--
            ``(1) Construction projects.--A provision shall be included 
        in the funding agreement that, for each construction project--
                    ``(A) states the approximate start and completion 
                dates, which may extend for one or more years;
                    ``(B) provides a general description of the 
                construction project;
                    ``(C) states the responsibilities of the Indian 
                tribe and the Secretary with respect to the 
                construction project;
                    ``(D) describes--
                            ``(i) the ways in which project-related 
                        environmental considerations shall be 
                        addressed; and
                            ``(ii) the standards by which the Indian 
                        tribe shall accomplish the project;
                    ``(E) states the amount of funds provided for the 
                project; and
                    ``(F) states that each project must comply with 
                applicable Federal laws, program statutes and 
                regulations.
    ``(c) Codes and Standards; Tribal Assurances.--
            ``(1) In general.--The funding agreement shall specify how 
        the Indian tribe shall ensure that proper health and safety 
        standards are followed in carrying out all construction-related 
        activities, including--
                    ``(A) the use of architects and engineers licensed 
                and qualified to perform the type of construction 
                involved in the funding agreement;
                    ``(B) applicable Federal, State, local, or tribal 
                codes and applicable engineering standards, appropriate 
                for the particular project; and
                    ``(C) necessary inspections and testing by the 
                Indian tribe.
            ``(2) Certification.--The assurances set forth in paragraph 
        (1) may be satisfied if the funding agreement contains a 
        certification by the Indian tribe that the Indian tribe will 
        establish and enforce procedures designed to ensure that all 
        construction-related programs undertaken through the funding 
        agreement adhere to building and other codes and architectural 
        and engineering standards (including public health and safety 
        standards, licensing requirements, and procedures identified in 
        paragraph (1)).
    ``(d) Responsibility for Completion.--The Indian tribe shall assume 
responsibility for the successful completion of the construction 
project in accordance with the funding agreement.
    ``(e) Funding.--
            ``(1) In general.--Funding for construction projects 
        carried out under this title shall be included in funding 
        agreements as annual advance payments, with semiannual payments 
        at the option of the Indian tribe. Annual advance and 
        semiannual payment amounts shall be determined based on 
        mutually agreeable project schedules reflecting work to be 
        accomplished within the advance payment period, work 
        accomplished and funds expended in previous payment periods, 
        and the total prior payments, subject to the availability of 
        appropriations for that purpose.
            ``(2) Contingency funds.--The Secretary shall include 
        associated project contingency and retention funds in an 
        advance payment described in paragraph (1), and the Indian 
        tribe shall be responsible for the management of the 
        contingency funds included in the funding agreement.
            ``(3) Reallocation of savings.--
                    ``(A) In general.--An Indian tribe may reallocate 
                any financial savings realized by the Indian tribe 
                arising from efficiencies in the design, construction, 
                or any other aspect of a construction program or 
                construction project.
                    ``(B) Purposes.--A reallocation under subparagraph 
                (A) shall be for construction-related activity purposes 
                for which the funds were appropriated and distributed 
                to the Indian tribe under the funding agreement.
    ``(f) Approval.--
            ``(1) In general.--The Secretary shall have at least one 
        opportunity to approve project planning and design documents 
        prepared by the Indian tribe in advance of construction of the 
        facilities specified in the scope of work for each negotiated 
        construction project agreement or any amendment thereof which 
        results in a significant change in the original scope of work.
            ``(2) Consistent with certification.--If the planning and 
        design documents for a construction project have been prepared 
        by an Indian tribe in a manner consistent with the 
        certification by a licensed and qualified architect or engineer 
        given by the Indian tribe as required under subsection (c), 
        approval by the Secretary of a funding agreement providing for 
        the assumption of the construction project shall be deemed to 
        be an approval by the Secretary of the construction project 
        planning and design documents.
            ``(3) Reports.--The Indian tribe shall provide the 
        Secretary with project progress and financial reports not less 
        than semiannually.
            ``(4) Inspection.--The Secretary may conduct onsite project 
        inspections at a construction project semiannually or on an 
        alternate schedule agreed to by the Secretary and the Indian 
        tribe.
    ``(g) Wages.--
            ``(1) In general.--All laborers and mechanics employed by a 
        contractor or subcontractor in the construction, alteration, or 
        repair (including painting or decorating) of a building or 
        other facility in connection with construction projects funded 
        under this title shall be paid wages at not less than those 
        prevailing wages on similar construction in the locality as 
        determined by the Secretary of Labor in accordance with 
        subchapter IV of chapter 31 of title 40, United States Code.
            ``(2) Authority.--With respect to construction alteration, 
        or repair work to which that subchapter is applicable under 
        this section, the Secretary of Labor shall have the authority 
        and functions specified in the Reorganization Plan numbered 14, 
        of 1950, and section 3145 of title 40.
    ``(h) Applicability of Other Law.--Unless otherwise agreed to by 
the Indian tribe, no provision of the Office of Federal Procurement 
Policy Act (41 U.S.C. 401 et seq.), the Federal Acquisition Regulation, 
or any other law or regulation pertaining to Federal procurement 
(including Executive orders) shall apply to any construction program or 
project conducted under this title.

``SEC. 409. PAYMENT.

    ``(a) In General.--At the request of the governing body of the 
Indian tribe and under the terms of an agreement, the Secretary shall 
provide funding to the Indian tribe to carry out the funding agreement.
    ``(b) Advance Annual Payment.--At the option of the Indian tribe, a 
funding agreement shall provide for an advance annual payment to an 
Indian tribe.
    ``(c) Amount.--Subject to subsection (e) and sections 405 and 406 
of this title, the Secretary shall provide funds to the Indian tribe 
under a funding agreement for programs in an amount that is equal to 
the amount that the Indian tribe would have been entitled to receive 
under contracts and grants under this Act (including amounts for direct 
program and contract support costs and, in addition, any funds that are 
specifically or functionally related to the provision by the Secretary 
of services and benefits to the Indian tribe or its members) without 
regard to the organization level within the Department in which the 
programs are carried out.
    ``(d) Timing.--Unless the funding agreement provides otherwise, the 
transfer of funds shall be made not later than 10 days after the 
apportionment of funds by the Office of Management and Budget to the 
Department.
    ``(e) Availability.--Funds for trust services to individual Indians 
shall be available under a funding agreement only to the extent that 
the same services that would have been provided by the Secretary are 
provided to individual Indians by the Indian tribe.
    ``(f) Multiyear Funding.--A funding agreement may provide for 
multiyear funding.
    ``(g) Limitations on Authority of the Secretary.--The Secretary 
shall not--
            ``(1) fail to transfer to an Indian tribe its full share of 
        any central, headquarters, regional, area, or service unit 
        office or other funds due under this title, except as required 
        by Federal law;
            ``(2) withhold any portion of such funds for transfer over 
        a period of years; or
            ``(3) reduce the amount of funds required under this 
        title--
                    ``(A) to make funding available for self-governance 
                monitoring or administration by the Secretary;
                    ``(B) in subsequent years, except as necessary as a 
                result of--
                            ``(i) a reduction in appropriations from 
                        the previous fiscal year for the program to be 
                        included in a compact or funding agreement;
                            ``(ii) a congressional directive in 
                        legislation or an accompanying report;
                            ``(iii) a tribal authorization;
                            ``(iv) a change in the amount of pass-
                        through funds subject to the terms of the 
                        funding agreement; or
                            ``(v) completion of an activity under a 
                        program for which the funds were provided;
                    ``(C) to pay for Federal functions, including--
                            ``(i) Federal pay costs;
                            ``(ii) Federal employee retirement 
                        benefits;
                            ``(iii) automated data processing;
                            ``(iv) technical assistance; and
                            ``(v) monitoring of activities under this 
                        title; or
                    ``(D) to pay for costs of Federal personnel 
                displaced by self-determination contracts under this 
                Act or self-governance under this title.
    ``(h) Federal Resources.--If an Indian tribe elects to carry out a 
compact or funding agreement with the use of Federal personnel, Federal 
supplies (including supplies available from Federal warehouse 
facilities), Federal supply sources (including lodging, airline 
transportation, and other means of transportation including the use of 
interagency motor pool vehicles) or other Federal resources (including 
supplies, services, and resources available to the Secretary under any 
procurement contracts in which the Department is eligible to 
participate), the Secretary shall acquire and transfer such personnel, 
supplies, or resources to the Indian tribe.
    ``(i) Prompt Payment Act.--Chapter 39 of title 31, United States 
Code, shall apply to the transfer of funds due under a compact or 
funding agreement authorized under this title.
    ``(j) Interest or Other Income.--
            ``(1) In general.--An Indian tribe may retain interest or 
        income earned on any funds paid under a compact or funding 
        agreement to carry out governmental purposes
            ``(2) No effect on other amounts.--The retention of 
        interest or income under paragraph (1) shall not diminish the 
        amount of funds an Indian tribe is entitled to receive under a 
        funding agreement in the year the interest or income is earned 
        or in any subsequent fiscal year.
            ``(3) Investment standard.--Funds transferred under this 
        title shall be managed using the prudent investment standard.
    ``(k) Carryover of Funds.--
            ``(1) In general.--Notwithstanding any provision of an Act 
        of appropriation, all funds paid to an Indian tribe in 
        accordance with a compact or funding agreement shall remain 
        available until expended.
            ``(2) Effect of carryover.--If an Indian tribe elects to 
        carry over funding from 1 year to the next, the carryover shall 
        not diminish the amount of funds the Indian tribe is entitled 
        to receive under a funding agreement in that fiscal year or any 
        subsequent fiscal year.
    ``(l) Limitation of Costs.--
            ``(1) In general.--An Indian tribe shall not be obligated 
        to continue performance that requires an expenditure of funds 
        in excess of the amount of funds transferred under a compact or 
        funding agreement.
            ``(2) Notice of insufficiency.--If at any time the Indian 
        tribe has reason to believe that the total amount provided for 
        a specific activity under a compact or funding agreement is 
        insufficient the Indian tribe shall provide reasonable notice 
        of such insufficiency to the Secretary.
            ``(3) Suspension of performance.--If, after notice under 
        paragraph (2), the Secretary does not increase the amount of 
        funds transferred under the funding agreement, the Indian tribe 
        may suspend performance of the activity until such time as 
        additional funds are transferred.
    ``(m) Distribution of Funds.--The Office of Self-Governance shall 
be responsible for distribution of all Bureau of Indian Affairs funds 
provided under this title unless otherwise agreed by the parties.

``SEC. 410. FACILITATION.

    ``(a) In General.--Except as otherwise provided by law, the 
Secretary shall interpret each Federal law and regulation in a manner 
that facilitates--
            ``(1) the inclusion of programs in funding agreements; and
            ``(2) the implementation of funding agreements.
    ``(b) Regulation Waiver.--
            ``(1) Request.--An Indian tribe may submit a written 
        request for a waiver to the Secretary identifying the specific 
        text in regulation sought to be waived and the basis for the 
        request.
            ``(2) Determination by the secretary.--Not later than 120 
        days after receipt by the Secretary of a request under 
        paragraph (1), the Secretary shall approve or deny the 
        requested waiver in writing to the Indian tribe.
            ``(3) Ground for denial.--The Secretary may deny a request 
        under paragraph (1) only upon a specific finding by the 
        Secretary that the identified text in the regulation may not be 
        waived because such a waiver is prohibited by Federal law.
            ``(4) Failure to make determination.--If the Secretary 
        fails to approve or deny a waiver request within the time 
        required under paragraph (2), the Secretary shall be deemed to 
        have approved the request.
            ``(5) Finality.--The Secretary's decision shall be final 
        for the Department.

``SEC. 411. DISCLAIMERS.

    ``Nothing in this title expands or alters any statutory authority 
of the Secretary so as to authorize the Secretary to enter into any 
agreement under sections 405(b)(2) or 405(b)(3)--
            ``(1) with respect to an inherent Federal function;
            ``(2) in a case in which the law establishing a program 
        explicitly prohibits the type of participation sought by the 
        Indian tribe (without regard to whether one or more Indian 
        tribes are identified in the authorizing law); or
            ``(3) limits or reduces in any way the services, contracts, 
        or funds that any other Indian tribe or tribal organization is 
        eligible to receive under section 102 or any other applicable 
        Federal law.

``SEC. 412. APPLICATION OF OTHER SECTIONS OF THE ACT.

    ``(a) Mandatory Application.--Sections 5(d), 6, 7, 102(c), 104, 
105(f), 105(m)(1)(B), 110, and 111 apply to compacts and funding 
agreements under this title.
    ``(b) Discretionary Application.--
            ``(1) In general.--At the option of a participating Indian 
        tribe or Indian tribes, any or all of the provisions of title I 
        shall be incorporated in any Department compact or funding 
        agreement.
            ``(2) Effect.--Each incorporated provision--
                    ``(A) shall have the same force and effect as if 
                set out in full in this title; and
                    ``(B) shall be deemed to supplement or replace any 
                related provision in this title and to apply to any 
                agency otherwise governed by this title.
            ``(3) Effective date.--If an Indian tribe requests 
        incorporation at the negotiation stage of a compact or funding 
        agreement, the incorporation--
                    ``(A) shall be deemed effective immediately; and
                    ``(B) shall control the negotiation and resulting 
                compact and funding agreement.

``SEC. 413. BUDGET REQUEST.

    ``(a) Requirement of Annual Budget Request.--
            ``(1) In general.--The President shall identify in the 
        annual budget request submitted to Congress under section 1105 
        of title 31, United States Code, all funds necessary to fully 
        fund all funding agreements authorized under this title.
            ``(2) Duty of secretary.--The Secretary shall ensure that 
        there are included, in each budget request, requests for funds 
        in amounts that are sufficient for planning and negotiation 
        grants and sufficient to cover any shortfall in funding 
        identified under subsection (b).
            ``(3) Rule of construction.--Nothing in this subsection 
        authorizes the Secretary to reduce the amount of funds that an 
        Indian tribe is otherwise entitled to receive under a funding 
        agreement or other applicable law.
    ``(b) Present Funding; Shortfalls.--In all budget requests, the 
President shall identify the level of need presently funded and any 
shortfall in funding (including direct program costs, tribal shares, 
and contract support costs) for each Indian tribe, either directly by 
the Secretary, under self-determination contracts, or under compacts 
and funding agreements.

``SEC. 414. REPORTS.

    ``(a) In General.--
            ``(1) Requirement.--On January 1 of each year, the 
        Secretary shall submit to Congress a report regarding the 
        administration of this title.
            ``(2) Analysis.--A report under paragraph (1) shall include 
        a detailed analysis of tribal unmet need for each Indian tribe, 
        either directly by the Secretary, under self-determination 
        contracts under title I, or under compacts and funding 
        agreements authorized under this title.
            ``(3) No additional reporting requirements.--In preparing 
        reports under paragraph (1), the Secretary may not impose any 
        reporting requirements on participating Indian tribes not 
        otherwise provided by this title.
    ``(b) Contents.--The report under subsection (a)(1) shall--
            ``(1) be compiled from information contained in funding 
        agreements, annual audit reports, and data of the Secretary 
        regarding the disposition of Federal funds;
            ``(2) identify--
                    ``(A) the relative costs and benefits of self-
                governance;
                    ``(B) with particularity, all funds that are 
                specifically or functionally related to the provision 
                by the Secretary of services and benefits to self-
                governance Indian tribes and members of Indian tribes;
                    ``(C) the funds transferred to each Indian tribe 
                and the corresponding reduction in the Federal 
                employees and workload;
                    ``(D) the funding formula for individual tribal 
                shares of all Central Office funds, together with the 
                comments of affected Indian tribes, developed under 
                subsection (d); and
                    ``(E) amounts expended in the preceding fiscal year 
                to carry out inherent Federal functions, including an 
                identification of inherent Federal functions by type 
                and location;
            ``(3) contain a description of the methods used to 
        determine the individual tribal share of funds controlled by 
        all components of the Department (including funds assessed by 
        any other Federal agency) for inclusion in compacts or funding 
        agreements;
            ``(4) before being submitted to Congress, be distributed to 
        the Indian tribes for comment (with a comment period of no less 
        than 30 days); and
            ``(5) include the separate views and comments of each 
        Indian tribe or tribal organization.
    ``(c) Report on Non-Bia Programs.--
            ``(1) In general.--In order to optimize opportunities for 
        including non-Bureau of Indian Affairs programs in agreements 
        with Indian tribes participating in self-governance under this 
        title, the Secretary shall--
                    ``(A) review all programs administered by the 
                Department, other than through the Bureau of Indian 
                Affairs, without regard to the agency or office 
                concerned; and
                    ``(B) not later than January 1 of each year, submit 
                to Congress--
                            ``(i) a list of all such programs that the 
                        Secretary determines, with the concurrence of 
                        Indian tribes participating in self-governance 
                        under this title, are eligible to be included 
                        in a funding agreement at the request of a 
                        participating Indian tribe; and
                            ``(ii) a list of all such programs for 
                        which Indian tribes have requested to include 
                        in a funding agreement under section 405(b)(3) 
                        due to the special geographic, historical, or 
                        cultural significance of the program to the 
                        Indian tribe, indicating whether each request 
                        was granted or denied, and stating the grounds 
                        for any denial.
            ``(2) Programmatic targets.--The Secretary shall establish 
        programmatic targets, after consultation with Indian tribes 
        participating in self-governance, to encourage bureaus of the 
        Department to ensure that a significant portion of those 
        programs are included in funding agreements.
            ``(3) Publication.--The lists and targets under paragraphs 
        (1) and (2) shall be published in the Federal Register and made 
        available to any Indian tribe participating in self-governance.
            ``(4) Annual review.--
                    ``(A) In general.--The Secretary shall annually 
                review and publish in the Federal Register, after 
                consultation with Indian tribes participating in self-
                governance, revised lists and programmatic targets.
                    ``(B) Contents.--The revised lists and programmatic 
                targets shall include all programs that were eligible 
                for contracting in the original list published in the 
                Federal Register in 1995, except for programs 
                specifically determined not to be contractible as a 
                matter of law.
    ``(d) Report on Central Office Funds.--Not later than January 1, 
2010, the Secretary shall, in consultation with Indian tribes, develop 
a funding formula to determine the individual tribal share of funds 
controlled by the Central Office of the Bureau of Indian Affairs for 
inclusion in the compacts.

``SEC. 415. REGULATIONS.

    ``(a) In General.--
            ``(1) Promulgation.--Not later than 90 days after the date 
        of the enactment of the Department of the Interior Tribal Self-
        Governance Act of 2007, the Secretary shall initiate procedures 
        under subchapter III of chapter 5, of title 5, United States 
        Code, to negotiate and promulgate such regulations as are 
        necessary to carry out the amendments made by this title.
            ``(2) Publication of proposed regulations.--Proposed 
        regulations to implement the amendments shall be published in 
        the Federal Register not later than 1 year after the date of 
        the enactment of this title.
            ``(3) Expiration of authority.--The authority to promulgate 
        regulations under paragraph (1) shall expire on the date that 
        is 18 months after the date of the enactment of this title.
    ``(b) Committee.--
            ``(1) Membership.--A negotiated rulemaking committee 
        established pursuant to section 565 of title 5, United States 
        Code, to carry out this section shall have as its members only 
        Federal and tribal government representatives.
            ``(2) Lead agency.--Among the Federal representatives, the 
        Office of Self-Governance shall be the lead agency for the 
        Department.
    ``(c) Adaptation of Procedures.--The Secretary shall adapt the 
negotiated rulemaking procedures to the unique context of self-
governance and the government-to-government relationship between the 
United States and Indian tribes.
    ``(d) Effect.--
            ``(1) Repeal.--All regulatory provisions under part 1000 of 
        title 25, Code of Federal Regulations, inconsistent with this 
        title are repealed on the date of the enactment of the 
        Department of the Interior Tribal Self-Governance Act of 2007.
            ``(2) Effectiveness without regard to regulations.--The 
        lack of promulgated regulations shall not limit the effect of 
        this title.

``SEC. 416. EFFECT OF CIRCULARS, POLICIES, MANUALS, GUIDANCES, AND 
              RULES.

    ``Unless expressly agreed to by a participating Indian tribe in the 
compact or funding agreement, the participating Indian tribe shall not 
be subject to any agency circular, policy, manual, guidance, or rule 
adopted by the Department, except for--
            ``(1) the eligibility provisions of section 105(g); and
            ``(2) regulations promulgated under section 415.

``SEC. 417. APPEALS.

    ``In any administrative appeal or civil action for judicial review 
of any decision made by the Secretary under this title, the Secretary 
shall have the burden of proof of demonstrating by clear and convincing 
evidence--
            ``(1) the validity of the grounds for the decision; and
            ``(2) the consistency of the decision with the provisions 
        and policies of this title.

``SEC. 418. AUTHORIZATION OF APPROPRIATIONS.

    ``There are authorized to be appropriated such sums as may be 
necessary to carry out this title.''.
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