[Congressional Bills 112th Congress]
[From the U.S. Government Publishing Office]
[S. 3679 Introduced in Senate (IS)]

112th CONGRESS
  2d Session
                                S. 3679

  To provide for Indian trust asset management reform, and for other 
                               purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                           December 13, 2012

 Mr. Crapo (for himself and Mr. Risch) introduced the following bill; 
  which was read twice and referred to the Committee on Indian Affairs

_______________________________________________________________________

                                 A BILL


 
  To provide for Indian trust asset management reform, 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; TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``Indian Trust Asset 
Reform Act''.
    (b) Table of Contents.--The table of contents for this Act is as 
follows:

Sec. 1. Short title; table of contents.
              TITLE I--RECOGNITION OF TRUST RESPONSIBILITY

Sec. 101. Congressional statement of findings.
Sec. 102. Congressional reaffirmation of policy.
   TITLE II--INDIAN TRUST ASSET MANAGEMENT DEMONSTRATION PROJECT ACT

Sec. 201. Short title.
Sec. 202. Definitions.
Sec. 203. Establishment of demonstration project; selection of 
                            participating Indian tribes.
Sec. 204. Indian trust asset management plan.
Sec. 205. Effect of title.
TITLE III--RESTRUCTURING BUREAU OF INDIAN AFFAIRS AND OFFICE OF SPECIAL 
                                TRUSTEE

Sec. 301. Purpose.
Sec. 302. Definitions.
Sec. 303. Under Secretary for Indian Affairs.
Sec. 304. Transfer of functions of Assistant Secretary for Indian 
                            Affairs.
Sec. 305. Office of Special Trustee for American Indians.
Sec. 306. Cost savings recommendations.
Sec. 307. Hiring preference.

              TITLE I--RECOGNITION OF TRUST RESPONSIBILITY

SEC. 101. CONGRESSIONAL STATEMENT OF FINDINGS.

    The Congress, after careful review of the Federal Government's 
historical and special legal relationship with, and resulting 
responsibilities to, American Indian people, finds that--
            (1) the relationship of Indian tribes to the United States 
        is founded in part on the settled doctrine of the law of 
        nations that when a stronger sovereign assumes authority over a 
        weaker sovereign, the stronger one assumes a duty of protection 
        for the weaker one, which does not surrender its right to self-
        government;
            (2) the United States fiduciary responsibilities to Indians 
        also constitutes a foundational basis for, not merely a 
        function of, congressional legislation regarding Indians 
        because it constitutes an inherent presupposition of our 
        constitutional structure, which provides an inherent limit on 
        the exercise and application of the Indian Commerce Clause and 
        the Treaty Clause of the Constitution;
            (3) the United States fiduciary responsibilities to Indians 
        also are founded in part on specific commitments made through 
        written treaties and agreements securing peace, in exchange for 
        which Indians have surrendered claims to vast tracts of land, 
        which provided legal consideration for permanent, ongoing 
        performance of Federal trust duties; and
            (4) the foregoing historic Federal-tribal relations and 
        understandings have benefitted the people of the United States 
        as a whole for centuries and established enduring and 
        enforceable Federal obligations to which the national honor has 
        been committed.

SEC. 102. CONGRESSIONAL REAFFIRMATION OF POLICY.

    Pursuant to its constitutionally vested authority over Indian 
affairs, the Congress hereby reaffirms the following regarding the 
proper discharge of the United States fiduciary responsibilities to 
Indians--
            (1) enforceable fiduciary duties necessarily arise when the 
        United States assumes control or supervision over tribal trust 
        assets even though nothing is said expressly in the governing 
        statutes or regulations, unless Congress has expressly 
        specified otherwise;
            (2) in general, the most exacting common-law fiduciary 
        standards which govern private trustees also govern the United 
        States when it manages Indian trust assets, and enforceable 
        Federal trust duties for Indian trust asset management are not 
        limited to the express terms of statutes and regulations;
            (3) the fact that the United States simultaneously performs 
        another task for another interest that Congress has obligated 
        it by statute to do does not compromise or limit the United 
        States enforceable fiduciary obligations to Indians; and
            (4) the United States fiduciary responsibilities to Indian 
        tribes include and are not limited by a duty to promote tribal 
        self-determination regarding governmental authority and 
        economic development.

   TITLE II--INDIAN TRUST ASSET MANAGEMENT DEMONSTRATION PROJECT ACT

SEC. 201. SHORT TITLE.

    This title may be cited as the ``Indian Trust Asset Management 
Demonstration Project Act of 2012''.

SEC. 202. DEFINITIONS.

    In this title:
            (1) Project.--The term ``Project'' means the Indian trust 
        asset management demonstration project established under 
        section 103(a).
            (2) Indian tribe.--The term ``Indian tribe'' means an 
        Indian tribe that--
                    (A) is federally recognized; and
                    (B) submits an application under section 203(c).
            (3) Secretary.--The term ``Secretary'' means the Secretary 
        of the Interior.

SEC. 203. ESTABLISHMENT OF DEMONSTRATION PROJECT; SELECTION OF 
              PARTICIPATING INDIAN TRIBES.

    (a) In General.--The Secretary shall establish and carry out an 
Indian trust asset management demonstration project, in accordance with 
this title.
    (b) Selection of Participating Indian Tribes.--
            (1) Indian tribes.--
                    (A) In general.--Any Indian tribe shall be eligible 
                to participate in the Project if--
                            (i) the Indian tribe submits to the 
                        Secretary an application under subsection (c); 
                        and
                            (ii) the Secretary approves the application 
                        of the Indian tribe.
            (2) Notice.--
                    (A) In general.--The Secretary shall provide a 
                written notice to each Indian tribe approved to 
                participate in the Project.
                    (B) Contents.--A notice under subparagraph (A) 
                shall include--
                            (i) a statement that the application of the 
                        Indian tribe has been approved by the 
                        Secretary; and
                            (ii) a requirement that the Indian tribe 
                        shall submit to the Secretary a proposed Indian 
                        trust asset management plan in accordance with 
                        section 104.
    (c) Application.--
            (1) In general.--To be eligible to participate in the 
        Project, an Indian tribe shall submit to the Secretary a 
        written application in accordance with paragraph (2).
            (2) Requirements.--The Secretary shall take into 
        consideration an application under this subsection only if the 
        application--
                    (A) includes a copy of a resolution or other 
                appropriate action by the governing body of the Indian 
                tribe, as determined by the Secretary, in support of or 
                authorizing the application;
                    (B) is received by the Secretary after the date of 
                enactment of this Act; and
                    (C) states that the Indian tribe is requesting to 
                participate in the Project.
    (d) Duration.--The Project shall remain in effect for a period of 8 
years after the date of enactment of this Act.

SEC. 204. INDIAN TRUST ASSET MANAGEMENT PLAN.

    (a) Proposed Plan.--
            (1) Submission.--After the date on which an Indian tribe 
        receives a notice from the Secretary under section 203(b)(2), 
        the Indian tribe shall submit to the Secretary a proposed 
        Indian trust asset management plan in accordance with paragraph 
        (2).
            (2) Contents.--A proposed Indian trust asset management 
        plan shall include provisions that--
                    (A) identify the trust assets that will be subject 
                to the plan, including financial and nonfinancial trust 
                assets;
                    (B) establish trust asset management objectives and 
                priorities for Indian trust assets that are located 
                within the reservation, or otherwise subject to the 
                jurisdiction, of the Indian tribe;
                    (C) allocate trust asset management funding that is 
                available for the Indian trust assets subject to the 
                plan in order to meet the trust asset management 
                objectives and priorities;
                    (D) if the Indian tribe has contracted or compacted 
                functions or activities under the Indian Self-
                Determination and Education Assistance Act (25 U.S.C. 
                450 et seq.) relating to the management of trust 
                assets--
                            (i) identify the functions or activities 
                        that are being performed by the Indian tribe 
                        under the contracts or compacts; and
                            (ii) describe the proposed management 
                        systems, practices, and procedures that the 
                        Indian tribe will follow;
                    (E) establish procedures for nonbinding mediation 
                or resolution of any dispute between the Indian tribe 
                and the United States relating to the trust asset 
                management plan;
                    (F) include a process for the Indian tribe and the 
                Federal agencies affected by the trust asset management 
                plan to conduct annual evaluations to ensure that trust 
                assets are being managed in accordance with the plan; 
                and
                    (G) identify any Federal regulations that will be 
                superseded by the plan.
            (3) Authority of indian tribes to develop systems, 
        practices, and procedures.--For purposes of preparing and 
        carrying out a management plan under this section, an Indian 
        tribe that has compacted or contracted activities or functions 
        under the Indian Self-Determination and Education Assistance 
        Act (25 U.S.C. 450 et seq.), for purposes of carrying out the 
        activities or functions, may develop and carry out trust asset 
        management systems, practices, and procedures that differ from 
        any such systems, practices, and procedures used by the 
        Secretary in managing the trust assets if the systems, 
        practices, and procedures of the Indian tribe meet the 
        requirements of the laws, standards, and responsibilities 
        described in subsection (c).
            (4) Technical assistance and information.--The Secretary 
        shall provide to an Indian tribe any technical assistance and 
        information, including budgetary information, that the Indian 
        tribe determines to be necessary for preparation of a proposed 
        plan on receipt of a written request from the Indian tribe.
    (b) Approval and Disapproval of Proposed Plans.--
            (1) Approval.--
                    (A) In general.--Not later than 120 days after the 
                date on which an Indian tribe submits a proposed Indian 
                trust asset management plan under subsection (a), 
                Secretary shall approve or disapprove the proposed 
                plan.
                    (B) Requirements for disapproval.--The Secretary 
                shall approve a proposed plan unless the Secretary 
                determines that--
                            (i) the proposed plan fails to address a 
                        requirement under subsection (a)(2);
                            (ii) the proposed plan includes one or more 
                        provisions that are inconsistent with 
                        subsection (c); or
                            (iii) the cost of implementing the proposed 
                        plan exceeds the amount of funding available 
                        for the management of trust assets that would 
                        be subject to the proposed plan.
            (2) Action on disapproval.--
                    (A) Notice.--If the Secretary disapproves a 
                proposed plan under paragraph (1)(B), the Secretary 
                shall provide to the Indian tribe a written notice of 
                the disapproval, including any reason why the proposed 
                plan was disapproved.
                    (B) Action by tribes.--If a proposed plan is 
                disapproved under paragraph (1)(B), the Indian tribe 
                may resubmit an amended proposed plan not later than 90 
                days after the date on which the Indian tribe receives 
                the notice under subparagraph (A).
            (3) Failure to approve or disapprove.--If the Secretary 
        fails to approve or disapprove a proposed plan in accordance 
        with paragraph (1), the plan shall be considered to be 
        approved.
            (4) Judicial review.--An Indian tribe may seek judicial 
        review of the determination of the Secretary in accordance with 
        subchapter II of chapter 5, and chapter 7, of title 5, United 
        States Code (commonly known as the ``Administrative Procedure 
        Act'') if--
                    (A) the Secretary disapproves the proposed plan of 
                the Indian tribe under paragraph (1) or (3); and
                    (B) the Indian tribe has exhausted any other 
                administrative remedy available to the Indian tribe.
    (c) Applicable Laws; Standards; Trust Responsibility.--
            (1) Applicable laws.--An Indian trust asset management 
        plan, and any activity carried out under the plan, shall not be 
        approved unless the proposed plan is consistent with--
                    (A) all Federal treaties, statutes, Executive 
                orders, and court decisions that are applicable to the 
                trust assets, or the management of the trust assets, 
                identified in the plan; and
                    (B) all tribal laws that are applicable to the 
                trust assets, or the management of trust assets, 
                identified in the plan, except to the extent that the 
                laws are inconsistent with the treaties, statutes, 
                Executive orders, and court decisions referred to in 
                subparagraph (A).
            (2) Standards.--Subject to the laws referred to in 
        paragraph (1)(A), an Indian trust asset management plan shall 
        not be approved unless the Secretary determines that the plan 
        will--
                    (A) protect trust assets from loss, waste, and 
                unlawful alienation;
                    (B) promote the interests of the beneficial owner 
                of the trust asset;
                    (C) conform, to the maximum extent practicable, to 
                the preferred use of the trust asset by the beneficial 
                owner, unless the use is inconsistent with a treaty, 
                statute, regulation, Executive order, or court decision 
                referred to in paragraph (1)(A);
                    (D) protect any applicable treaty-based fishing, 
                hunting and gathering, and similar rights relating to 
                the use, access, or enjoyment of a trust asset; and
                    (E) require that any activity carried out under the 
                plan be carried out in good faith and with loyalty to 
                the beneficial owner of the trust asset.
            (3) Trust responsibility.--An Indian trust asset management 
        plan shall not be approved unless the Secretary determines that 
        the plan is consistent with the trust responsibility of the 
        United States to the Indian tribe and individual Indians.
    (d) Termination of Plan.--
            (1) In general.--An Indian tribe may terminate an Indian 
        trust asset management plan on any date after the date on which 
        a proposed Indian trust asset management plan is approved by 
        providing to the Secretary--
                    (A) a notice of the intent of the Indian tribe to 
                terminate the plan; and
                    (B) a resolution of the governing body of the 
                Indian tribe authorizing the termination of the plan.
            (2) Effective date.--A termination of an Indian trust asset 
        management plan under paragraph (1) takes effect on October 1 
        of the first fiscal year following the date on which a notice 
        is provided to the Secretary under paragraph (1)(A).

SEC. 205. EFFECT OF TITLE.

    (a) Liability.--Nothing in this title, or a trust asset management 
plan approved under section 204, shall independently diminish, 
increase, create, or otherwise affect the liability of the United 
States or an Indian tribe participating in the Project for any loss 
resulting from the management of an Indian trust asset under an Indian 
trust asset management plan.
    (b) Effect on Other Laws.--Except for any regulation superseded by 
a trust asset management plan approved under section 204, nothing in 
this title amends or otherwise affects the application of any treaty, 
statute, regulation, Executive order, or court decision that is 
applicable to Indian trust assets or the management or administration 
of Indian trust assets.
    (c) Trust Responsibility.--Nothing in this title diminishes or 
otherwise affects the trust responsibility of the United States to 
Indian tribes and individual Indians.

TITLE III--RESTRUCTURING BUREAU OF INDIAN AFFAIRS AND OFFICE OF SPECIAL 
                                TRUSTEE

SEC. 301. PURPOSE.

    The purpose of this title is to ensure a more effective and 
accountable administration of duties of the Secretary of the Interior 
with respect to providing services and programs to Indians and Indian 
tribes, including the management of Indian trust resources.

SEC. 302. DEFINITIONS.

    In this title:
            (1) Bureau.--The term ``Bureau'' means the Bureau of Indian 
        Affairs.
            (2) Office.--The term ``Office'' means the Office of Trust 
        Reform Implementation and Oversight referred to in section 
        303(c).
            (3) Secretary.--The term ``Secretary'' means the Secretary 
        of the Interior.
            (4) Under secretary.--The term ``Under Secretary'' means 
        the individual appointed to the position of Under Secretary for 
        Indian Affairs, established by section 303(a).

SEC. 303. UNDER SECRETARY FOR INDIAN AFFAIRS.

    (a) Establishment of Position.--There is established in the 
Department of the Interior the position of Under Secretary for Indian 
Affairs, who shall report directly to the Secretary.
    (b) Appointment.--
            (1) In general.--Except as provided in paragraph (2), the 
        Under Secretary shall be appointed by the President, by and 
        with the advice and consent of the Senate.
            (2) Exception.--The officer serving as the Assistant 
        Secretary for Indian Affairs on the date of enactment of this 
        Act may assume the position of Under Secretary without 
        appointment under paragraph (1) if--
                    (A) the officer was appointed as Assistant 
                Secretary for Indian Affairs by the President by and 
                with the advice and consent of the Senate; and
                    (B) not later than 180 days after the date of 
                enactment of this Act, the Secretary approves the 
                assumption.
    (c) Duties.--In addition to the duties transferred to the Under 
Secretary under sections 304 and 305, the Under Secretary, acting 
through an Office of Trust Reform Implementation and Oversight, shall--
            (1) carry out any activity relating to trust fund accounts 
        and trust resource management of the Bureau (except any 
        activity carried out under the Office of the Special Trustee 
        for American Indians before the date on which the Office of the 
        Special Trustee is abolished), in accordance with the American 
        Indian Trust Fund Management Reform Act of 1994 (25 U.S.C. 4001 
        et seq.);
            (2) develop and maintain an inventory of Indian trust 
        assets and resources;
            (3) coordinate with the Special Trustee for American 
        Indians to ensure an orderly transition of the functions of the 
        Special Trustee under section 305;
            (4) supervise any activity carried out by the Department of 
        the Interior, including but not limited to--
                    (A) to the extent that the activities relate to 
                Indian affairs, activities carried out by--
                            (i) the Commissioner of Reclamation;
                            (ii) the Director of the Bureau of Land 
                        Management;
                            (iii) the Director of the Office of Natural 
                        Resources Revenue;
                            (iv) the Director of the National Park 
                        Service; and
                            (v) the Director of the U.S. Fish and 
                        Wildlife Service; and
                    (B) intergovernmental relations between the Bureau 
                and Indian tribal governments;
            (5) to the maximum extent practicable, coordinate 
        activities and policies of the Bureau with activities and 
        policies of--
                    (A) the Bureau of Reclamation;
                    (B) the Bureau of Land Management;
                    (C) the Office of Natural Resources Revenue;
                    (D) the National Park Service; and
                    (E) the U.S. Fish and Wildlife Service;
            (6) provide for regular consultation with Indians and 
        Indian tribes that own interests in trust resources and trust 
        fund accounts;
            (7) manage and administer Indian trust resources in 
        accordance with any applicable Federal law;
            (8) take steps to protect the security of data relating to 
        individual Indian and Indian tribal trust accounts; and
            (9) take any other measure the Under Secretary determines 
        to be necessary with respect to Indian affairs.

SEC. 304. TRANSFER OF FUNCTIONS OF ASSISTANT SECRETARY FOR INDIAN 
              AFFAIRS.

    (a) Transfer of Functions.--There is transferred to the Under 
Secretary any function of the Assistant Secretary for Indian Affairs 
that has not been carried out by the Assistant Secretary as of the date 
of enactment of this Act.
    (b) Determinations of Certain Functions by the Office of Management 
and Budget.--If necessary, the Office of Management and Budget shall 
make any determination relating to the functions transferred under 
subsection (a).
    (c) Personnel Provisions.--
            (1) Appointments.--The Under Secretary may appoint and fix 
        the compensation of such officers and employees as the Under 
        Secretary determines to be necessary to carry out any function 
        transferred under this section.
            (2) Requirements.--Except as otherwise provided by law--
                    (A) an officer or employee described in paragraph 
                (1) shall be appointed in accordance with the civil 
                service laws; and
                    (B) the compensation of the officer or employee 
                shall be fixed in accordance with title 5, United 
                States Code.
    (d) Delegation and Assignment.--
            (1) In general.--Except as otherwise expressly prohibited 
        by law or otherwise provided by this section, the Under 
        Secretary may--
                    (A) delegate any of the functions transferred to 
                the Under Secretary by this section and any function 
                transferred or granted to the Under Secretary after the 
                date of enactment of this Act to such officers and 
                employees of the Office as the Under Secretary may 
                designate; and
                    (B) authorize successive redelegations of such 
                functions as the Under Secretary determines to be 
                necessary or appropriate.
            (2) Delegation.--No delegation of functions by the Under 
        Secretary under this section shall relieve the Under Secretary 
        of responsibility for the administration of the functions.
    (e) Reorganization.--The Under Secretary may allocate or reallocate 
any function transferred under this section among the officers of the 
Office, and establish, consolidate, alter, or discontinue such 
organizational entities in the Office, as the Under Secretary 
determines to be necessary or appropriate.
    (f) Rules.--The Under Secretary may prescribe, in accordance with 
the provisions of chapters 5 and 6 of title 5, United States Code, such 
rules and regulations as the Under Secretary determines to be necessary 
or appropriate to administer and manage the functions of the Office.
    (g) Transfer and Allocations of Appropriations and Personnel.--
            (1) In general.--Except as otherwise provided in this 
        section, the personnel employed in connection with, and the 
        assets, liabilities, contracts, property, records, and 
        unexpended balances of appropriations, authorizations, 
        allocations, and other funds employed, used, held, arising 
        from, available to, or to be made available in connection with, 
        the functions transferred by this section, subject to section 
        1531 of title 31, United States Code, shall be transferred to 
        the Office.
            (2) Unexpended funds.--Unexpended funds transferred 
        pursuant to this subsection shall be used only for the purposes 
        for which the funds were originally authorized and 
        appropriated.
    (h) Incidental Transfers.--
            (1) In general.--The Director of the Office of Management 
        and Budget, at any time the Director may provide, may make such 
        determinations as are necessary with regard to the functions 
        transferred by this section, and make such additional 
        incidental dispositions of personnel, assets, liabilities, 
        grants, contracts, property, records, and unexpended balances 
        of appropriations, authorizations, allocations, and other funds 
        held, used, arising from, available to, or to be made available 
        in connection with such functions, as are necessary, to carry 
        out this section.
            (2) Termination of affairs.--The Director of the Office of 
        Management and Budget shall provide for the termination of the 
        affairs of all entities terminated by this section and for any 
        further measures and dispositions as are necessary to 
        effectuate the purposes of this section.
    (i) Effect on Personnel.--
            (1) In general.--Except as otherwise provided by this 
        section, the transfer pursuant to this section of full-time 
        personnel (except special Government employees) and part-time 
        personnel holding permanent positions shall not cause any such 
        employee to be separated or reduced in grade or compensation 
        for a period of at least 1 year after the date of transfer of 
        the employee under this section.
            (2) Executive schedule positions.--Except as otherwise 
        provided in this section, any person who, on the day preceding 
        the date of enactment of this Act, held a position compensated 
        in accordance with the Executive Schedule prescribed in chapter 
        53 of title 5, United States Code, and who, without a break in 
        service, is appointed to a position in the Office having duties 
        comparable to the duties performed immediately preceding such 
        appointment shall continue to be compensated in the new 
        position at not less than the rate provided for the previous 
        position, for the duration of the service of the person in the 
        new position.
            (3) Termination of certain positions.--Positions whose 
        incumbents are appointed by the President, by and with the 
        advice and consent of the Senate, the functions of which are 
        transferred by this title, shall terminate on the date of 
        enactment of this Act.
    (j) Separability.--If a provision of this section or the 
application of this section to any person or circumstance is held 
invalid, neither the remainder of this section nor the application of 
the provision to other persons or circumstances shall be affected.
    (k) Transition.--The Under Secretary may use--
            (1) the services of the officers, employees, and other 
        personnel of the Assistant Secretary for Indian Affairs 
        relating to functions transferred to the Office by this 
        section; and
            (2) funds appropriated to the functions for such period of 
        time as may reasonably be needed to facilitate the orderly 
        implementation of this section.
    (l) References.--Any reference in a Federal law, Executive order, 
rule, regulation, delegation of authority, or document relating to the 
Assistant Secretary for Indian Affairs, with respect to functions 
transferred under this section, shall be deemed to be a reference to 
the Under Secretary.
    (m) Recommended Legislation.--Not later than 180 days after the 
effective date of this title, the Under Secretary, in consultation with 
the appropriate committees of Congress and the Director of the Office 
of Management and Budget, shall submit to Congress any recommendations 
relating to additional technical and conforming amendments to Federal 
law to reflect the changes made by this section.
    (n) Effect of Section.--
            (1) Continuing effect of legal documents.--Any legal 
        document relating to a function transferred by this section 
        that is in effect on the date of enactment of this Act shall 
        continue in effect in accordance with the terms of the document 
        until the document is modified or terminated by--
                    (A) the President;
                    (B) the Under Secretary;
                    (C) a court of competent jurisdiction; or
                    (D) operation of Federal or State law.
            (2) Proceedings not affected.--This section shall not 
        affect any proceeding (including a notice of proposed 
        rulemaking, an administrative proceeding, and an application 
        for a license, permit, certificate, or financial assistance) 
        relating to a function transferred under this section that is 
        pending before the Assistant Secretary on the date of enactment 
        of this Act.

SEC. 305. OFFICE OF SPECIAL TRUSTEE FOR AMERICAN INDIANS.

    (a) Termination.--Notwithstanding sections 302 and 303 of the 
American Indian Trust Fund Management Reform Act of 1994 (25 U.S.C. 
4042; 4043), the Office of Special Trustee for American Indians shall 
terminate on the effective date of this section.
    (b) Transfer of Functions.--There is transferred to the Under 
Secretary any function of the Special Trustee for American Indians that 
has not been carried out by the Special Trustee as of the effective 
date of this section.
    (c) Determinations of Certain Functions by the Office of Management 
and Budget.--If necessary, the Office of Management and Budget shall 
make any determination relating to the functions transferred under 
subsection (b).
    (d) Personnel Provisions.--
            (1) Appointments.--The Under Secretary may appoint and fix 
        the compensation of such officers and employees as the Under 
        Secretary determines to be necessary to carry out any function 
        transferred under this section.
            (2) Requirements.--Except as otherwise provided by law--
                    (A) any officer or employee described in paragraph 
                (1) shall be appointed in accordance with the civil 
                service laws; and
                    (B) the compensation of such an officer or employee 
                shall be fixed in accordance with title 5, United 
                States Code.
    (e) Delegation and Assignment.--
            (1) In general.--Except as otherwise expressly prohibited 
        by law or otherwise provided by this section, the Under 
        Secretary may--
                    (A) delegate any of the functions transferred to 
                the Under Secretary under this section and any function 
                transferred or granted to the Under Secretary after the 
                effective date of this section to such officers and 
                employees of the Office as the Under Secretary may 
                designate; and
                    (B) authorize successive redelegations of the 
                functions as are necessary or appropriate.
            (2) Delegation.--No delegation of functions by the Under 
        Secretary under this section shall relieve the Under Secretary 
        of responsibility for the administration of the functions.
    (f) Reorganization.--The Under Secretary may allocate or reallocate 
any function transferred under subsection (b) among the officers of the 
Office, and establish, consolidate, alter, or discontinue such 
organizational entities in the Office as the Under Secretary determines 
to be necessary or appropriate.
    (g) Rules.--The Under Secretary may prescribe, in accordance with 
the provisions of chapters 5 and 6 of title 5, United States Code, such 
rules and regulations as the Under Secretary determines to be necessary 
or appropriate to administer and manage the functions of the Office.
    (h) Transfer and Allocations of Appropriations and Personnel.--
Except as otherwise provided in this section, the personnel employed in 
connection with, and the assets, liabilities, contracts, property, 
records, and unexpended balances of appropriations, authorizations, 
allocations, and other funds employed, used, held, arising from, 
available to, or to be made available in connection with the functions 
transferred by this section, subject to section 1531 of title 31, 
United States Code, shall be transferred to the Office.
    (i) Incidental Transfers.--
            (1) In general.--The Director of the Office of Management 
        and Budget, at any time the Director may provide, may make such 
        determinations as are necessary with regard to the functions 
        transferred by this section, and make such additional 
        incidental dispositions of personnel, assets, liabilities, 
        grants, contracts, property, records, and unexpended balances 
        of appropriations, authorizations, allocations, and other funds 
        held, used, arising from, available to, or to be made available 
        in connection with such functions, as are necessary, to carry 
        out this section.
            (2) Termination of affairs.--The Director of the Office of 
        Management and Budget shall provide for the termination of the 
        affairs of all entities terminated by this section and for any 
        further measures and dispositions as are necessary to 
        effectuate the purposes of this section.
    (j) Effect on Personnel.--
            (1) In general.--Except as otherwise provided by this 
        section, the transfer pursuant to this section of full-time 
        personnel (except special Government employees) and part-time 
        personnel holding permanent positions shall not cause any such 
        employee to be separated or reduced in grade or compensation 
        for a period of at least 1 year after the date of transfer of 
        the employee under this section.
            (2) Executive schedule positions.--Except as otherwise 
        provided in this section, any person who, on the day preceding 
        the effective date of this section, held a position compensated 
        in accordance with the Executive Schedule prescribed in chapter 
        53 of title 5, United States Code, and who, without a break in 
        service, is appointed to a position in the Office having duties 
        comparable to the duties performed immediately preceding such 
        appointment, shall continue to be compensated in the new 
        position at not less than the rate provided for the previous 
        position, for the duration of the service of the person in the 
        new position.
            (3) Termination of certain positions.--Positions the 
        incumbents of which are appointed by the President, by and with 
        the advice and consent of the Senate, and the functions of 
        which are transferred by this title, shall terminate on the 
        effective date of this section.
    (k) Separability.--If a provision of this section or the 
application of this section to any person or circumstance is held 
invalid, neither the remainder of this section nor the application of 
the provision to other persons or circumstances shall be affected.
    (l) Transition.--The Under Secretary may use--
            (1) the services of the officers, employees, and other 
        personnel of the Special Trustee relating to functions 
        transferred to the Office by this section; and
            (2) funds appropriated to those functions for such period 
        of time as may reasonably be needed to facilitate the orderly 
        implementation of this section.
    (m) References.--Any reference in a Federal law, Executive order, 
rule, regulation, delegation of authority, or document relating to the 
Special Trustee, with respect to functions transferred under this 
section, shall be deemed to be a reference to the Under Secretary.
    (n) Recommended Legislation.--Not later than 180 days after the 
effective date of this title, the Under Secretary, in consultation with 
the appropriate committees of Congress and the Director of the Office 
of Management and Budget, shall submit to Congress any recommendations 
relating to additional technical and conforming amendments to Federal 
law to reflect the changes made by this section.
    (o) Effect of Section.--
            (1) Continuing effect of legal documents.--Any legal 
        document relating to a function transferred by this section 
        that is in effect on the effective date of this section shall 
        continue in effect in accordance with the terms of the document 
        until the document is modified or terminated by--
                    (A) the President;
                    (B) the Under Secretary;
                    (C) a court of competent jurisdiction; or
                    (D) operation of Federal or State law.
            (2) Proceedings not affected.--This section shall not 
        affect any proceeding (including a notice of proposed 
        rulemaking, an administrative proceeding, and an application 
        for a license, permit, certificate, or financial assistance) 
        relating to a function transferred under this section that is 
        pending before the Special Trustee on the effective date of 
        this section.
    (p) Effective Date.--This section shall take effect on April 1, 
2013, or 180 days following enactment of this Act into law, whichever 
is earlier.

SEC. 306. COST SAVINGS RECOMMENDATIONS.

    (a) Cost Savings Identification.--Within 60 days of the effective 
date in section 305(p), the Under Secretary shall initiate procedures 
to--
            (1) identify the programs, functions, services, and 
        activities (or any portions of programs, functions, services, 
        or activities) that will not have to operate or carry out as a 
        result of any transfer of functions and personnel under section 
        305;
            (2) identify the amounts that the Secretary would have 
        otherwise expended to operate or carry out each program, 
        function, service, and activity (or any portion of a program, 
        function, service, or activity) identified pursuant to 
        paragraph (1); and
            (3) provide to the Secretary and the tribal representatives 
        of the Tribal/Interior Budget Council, within 120 days of the 
        effective date in section 305(p), a list of the programs, 
        functions, services, and activities (or any portions of 
        programs, functions, services, or activities) identified 
        pursuant paragraph (1) and the amounts associated with each 
        program, function, service, and activity (or any portion of a 
        program, function, service, or activity) identified pursuant to 
        paragraph (2).
    (b) Tribal Recommendations.--Within 120 days of receipt of the 
information in subsection (a)(3), the tribal representatives of the 
Tribal/Interior Budget Council may provide recommendations to the 
Secretary and the Office of Management and Budget on how any amounts or 
cost savings should be reallocated and/or incorporated into future 
budget requests.

SEC. 307. HIRING PREFERENCE.

    In appointing or otherwise hiring any employee to the Office, the 
Under Secretary shall give preference to Indians in accordance with 
section 12 of the Act of June 8, 1934 (25 U.S.C. 472).
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