[Congressional Record Volume 146, Number 99 (Wednesday, July 26, 2000)]
[Senate]
[Pages S7704-S7714]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




            INDIAN LAND CONSOLIDATION ACT AMENDMENTS OF 1999

  Mr. DeWINE. Mr. President, I ask unanimous consent that the Senate 
now proceed to the consideration of Calendar No. 714, S. 1586.
  The PRESIDING OFFICER. The clerk will report the bill by title.
  The legislative clerk read as follows:

       A bill (S. 1586) to reduce the fractionated ownership of 
     Indian Lands, and for other purposes.

  There being no objection, the Senate proceeded to consider the bill, 
which had been reported from the Committee on Indian Affairs, with an 
amendment:
  [Strike out all after the enacting clause and insert the part printed 
in italic]

                                S. 1586

       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 ``Indian Land Consolidation 
     Act Amendments of 2000''.

     SEC. 2. FINDINGS.

       Congress finds that--
       (1) in the 1800's and early 1900's, the United States 
     sought to assimilate Indian people into the surrounding non-
     Indian culture by allotting tribal lands to individual 
     members of Indian tribes;
       (2) as a result of the allotment Acts and related Federal 
     policies, over 90,000,000 acres of land have passed from 
     tribal ownership;
       (3) many trust allotments were taken out of trust status, 
     often without their owners consent;
       (4) without restrictions on alienation, allotment owners 
     were subject to exploitation and their allotments were often 
     sold or disposed of without any tangible or enduring benefit 
     to their owners;
       (5) the trust periods for trust allotments have been 
     extended indefinitely;
       (6) because of the inheritance provisions in the original 
     treaties or allotment Acts, the ownership of many of the 
     trust allotments that have remained in trust status has 
     become fractionated into hundreds or thousands of interests, 
     many of which represent 2 percent or less of the total 
     interests;
       (7) Congress has authorized the acquisition of lands in 
     trust for individual Indians, and many of those lands have 
     also become fractionated by subsequent inheritance;
       (8) the acquisitions referred to in paragraph (7) continue 
     to be made;
       (9) the fractional interests described in this section 
     provide little or no return to the beneficial owners of those 
     interests and the administrative costs borne by the United 
     States for those interests are inordinately high;
       (10) in Babbitt v. Youpee (117 S Ct. 727 (1997)), the 
     United States Supreme Court found that the application of 
     section 207 of the Indian Land Consolidation Act (25 U.S.C. 
     2206) to the facts presented in that case to be 
     unconstitutional, forcing the Department of the Interior to 
     address the status of thousands of undivided interests in 
     trust and restricted lands;
       (11)(A) on February 19, 1999, the Secretary of Interior 
     issued a Secretarial Order which officially reopened the 
     probate of all estates where an interest in land was ordered 
     to escheat to an Indian tribe pursuant to section 207 of the 
     Indian Land Consolidation Act (25 U.S.C. 2206); and
       (B) the Secretarial Order also directed appropriate 
     officials of the Bureau of Indian Affairs to distribute such 
     interests ``to the rightful heirs and beneficiaries without 
     regard to 25 U.S.C. 2206'';
       (12) in the absence of comprehensive remedial legislation, 
     the number of the fractional interests will continue to grow 
     exponentially;
       (13) the problem of the fractionation of Indian lands 
     described in this section is the result of a policy of the 
     Federal Government, cannot be solved by Indian tribes, and 
     requires a solution under Federal law.

[[Page S7705]]

       (14) any devise or inheritance of an interest in trust or 
     restricted Indian lands is based on Federal law; and
       (15) consistent with the Federal policy of tribal self-
     determination, the Federal Government should encourage the 
     recognized tribal government that exercises jurisdiction over 
     a reservation to establish a tribal probate code for that 
     reservation.

     SEC. 3. DECLARATION OF POLICY.

       It is the policy of the United States--
       (1) to prevent the further fractionation of trust 
     allotments made to Indians;
       (2) to consolidate fractional interests and ownership of 
     those interests into usable parcels;
       (3) to consolidate fractional interests in a manner that 
     enhances tribal sovereignty;
       (4) to promote tribal self-sufficiency and self-
     determination; and
       (5) to reverse the effects of the allotment policy on 
     Indian tribes.

     SEC. 4. AMENDMENTS TO THE INDIAN LAND CONSOLIDATION ACT.

       The Indian Land Consolidation Act (25 U.S.C. 2201 et seq.) 
     is amended--
       (1) in section 202--
       (A) in paragraph (1), by striking ``(1) `tribe' '' and 
     inserting ``(1) `Indian tribe' or `tribe' '';
       (B) by striking paragraph (2) and inserting the following:
       ``(2) `Indian' means any person who is a member of any 
     Indian tribe or is eligible to become a member of any Indian 
     tribe at the time of the distribution of the assets of a 
     decedent's estate;'';
       (C) by striking ``and'' at the end of paragraph (3);
       (D) by striking the period at the end of paragraph (4) and 
     inserting ``; and''; and
       (E) by adding at the end the following:
       ``(5) `heirs of the first or second degree' means parents, 
     children, grandchildren, grandparents, brothers and sisters 
     of a decedent.'';
       (2) in section 205--
       (A) in the matter preceding paragraph (1)--
       (i) by striking ``Any Indian'' and inserting ``(a) In 
     General.--Subject to subsection (b), any Indian'';
       (ii) by striking the colon and inserting the following: ``. 
     Interests owned by an Indian tribe in a tract may be included 
     in the computation of the percentage of ownership of the 
     undivided interests in that tract for purposes of determining 
     whether the consent requirement under the preceding sentence 
     has been met.'';
       (iii) by striking ``: Provided, That--''; and inserting the 
     following:
       ``(b) Conditions Applicable to Purchase.--Subsection (a) 
     applies on the condition that--'';
       (B) in paragraph (2)--
       (i) by striking ``If,'' and inserting ``if''; and
       (ii) by adding ``and'' at the end; and
       (C) by striking paragraph (3) and inserting the following:
       ``(3) the approval of the Secretary shall be required for a 
     land sale initiated under this section, except that such 
     approval shall not be required with respect to a land sale 
     transaction initiated by an Indian tribe that has in effect a 
     land consolidation plan that has been approved by the 
     Secretary under section 204.'';
       (3) by striking section 206 and inserting the following:

     ``SEC. 206. TRIBAL PROBATE CODES; ACQUISITIONS OF FRACTIONAL 
                   INTERESTS BY TRIBES.

       ``(a) Tribal Probate Codes.--
       ``(1) In general.--Notwithstanding any other provision of 
     law, any Indian tribe may adopt a tribal probate code to 
     govern descent and distribution of trust or restricted lands 
     that are--
       ``(A) located within that Indian tribe's reservation; or
       ``(B) otherwise subject to the jurisdiction of that Indian 
     tribe.
       ``(2) Possible inclusions.--A tribal probate code referred 
     to in paragraph (1) may include--
       ``(A) rules of intestate succession; and
       ``(B) other tribal probate code provisions that are 
     consistent with Federal law and that promote the policies set 
     forth in section 3 of the Indian Land Consolidation Act 
     Amendments of 2000.
       ``(3) Limitations.--The Secretary shall not approve a 
     tribal probate code if such code prevents an Indian person 
     from inheriting an interest in an allotment that was 
     originally allotted to his or her lineal ancestor.
       ``(b) Secretarial Approval.--
       ``(1) In general.--Any tribal probate code enacted under 
     subsection (a), and any amendment to such a tribal probate 
     code, shall be subject to the approval of the Secretary.
       ``(2) Review and approval.--
       ``(A) In general.--Each Indian tribe that adopts a tribal 
     probate code under subsection (a) shall submit that code to 
     the Secretary for review. Not later than 180 days after a 
     tribal probate code is submitted to the Secretary under this 
     paragraph, the Secretary shall review and approve or 
     disapprove that tribal probate code.
       ``(B) Consequence of failures to approve or disapprove a 
     tribal probate code.--If the Secretary fails to approve or 
     disapprove a tribal probate code submitted for review under 
     subparagraph (A) by the date specified in that subparagraph, 
     the tribal probate code shall be deemed to have been approved 
     by the Secretary, but only to the extent that the tribal 
     probate code is consistent with Federal law and promotes the 
     policies set forth in section 3 of the Indian Land 
     Consolidation Act Amendments of 2000.
       ``(C) Consistency of tribal probate code with act.--The 
     Secretary may not approve a tribal probate code, or any 
     amendment to such a code, under this paragraph unless the 
     Secretary determines that the tribal probate code promotes 
     the policies set forth in section 3 of the Indian Land 
     Consolidation Act Amendments of 2000.
       ``(D) Explanation.--If the Secretary disapproves a tribal 
     probate code, or an amendment to such a code, under this 
     paragraph, the Secretary shall include in the notice of 
     disapproval to the Indian tribe a written explanation of the 
     reasons for the disapproval.
       ``(E) Amendments.--
       ``(i) In general.--Each Indian tribe that amends a tribal 
     probate code under this paragraph shall submit the amendment 
     to the Secretary for review and approval. Not later than 60 
     days after receiving an amendment under this subparagraph, 
     the Secretary shall review and approve or disapprove the 
     amendment.
       ``(ii) Consequence of failure to approve or disapprove an 
     amendment.--If the Secretary fails to approve or disapprove 
     an amendment submitted under clause (i), the amendment shall 
     be deemed to have been approved by the Secretary, but only to 
     the extent that the amendment is consistent with Federal law 
     and promotes the policies set forth in section 3 of the 
     Indian Land Consolidation Act of 2000.
       ``(3) Effective dates.--A tribal probate code approved 
     under paragraph (2) shall become effective on the later of--
       ``(A) the date specified in section 207(f)(5); or
       ``(B) 180 days after the date of approval.
       ``(4) Limitations.--
       ``(A) Tribal probate codes.--Each tribal probate code 
     enacted under subsection (a) shall apply only to the estate 
     of a decedent who dies on or after the effective date of the 
     tribal probate code.
       ``(B) Amendments to tribal probate codes.--With respect to 
     an amendment to a tribal probate code referred to in 
     subparagraph (A), that amendment shall apply only to the 
     estate of a descendant who dies on or after the effective 
     date of the amendment.
       ``(5) Repeals.--The repeal of a tribal probate code shall--
       ``(A) not become effective earlier than the date that is 
     180 days after the Secretary receives notice of the repeal; 
     and
       ``(B) apply only to the estate of a decedent who dies on or 
     after the effective date of the repeal.
       ``(c) Authority Available to Indian Tribes.--
       ``(1) Application.--The recognized tribal government that 
     has jurisdiction over an Indian reservation (as defined in 
     section 207(c)(5)) may exercise the authority provided for in 
     paragraph (2).
       ``(2) Authority to make payments in lieu of inheritance of 
     interest in land.--
       ``(A) Prohibition.--An individual who is not an Indian 
     shall not be entitled to receive by devise or descent any 
     interest in trust or restricted land, except by reserving a 
     life estate under subparagraph (B)(ii), within the 
     reservation over which a tribal government has jurisdiction 
     if, while the decedent's estate is pending before the 
     Secretary, the tribal government referred to in paragraph (1) 
     pays to the Secretary, on behalf of such individual, the 
     value of such interest. The interest for which payment is 
     made under this subparagraph shall be held by the Secretary 
     in trust for the tribal government.
       ``(B) Exception.--
       ``(i) In general.--Subparagraph (A) shall not apply to any 
     interest in trust or restricted land if, while the decedent's 
     estate is pending before the Secretary, the ineligible non-
     Indian heir or devisee described in such subparagraph 
     renounces the interest in favor of a person or persons who 
     are otherwise eligible to inherit.
       ``(ii) Reservation of life estate.--The non-Indian heir or 
     devisee described in clause (i) may retain a life estate in 
     the interest and convey the remaining interest to an Indian 
     person.
       ``(iii) Presumption.--In the absence of any express 
     language to the contrary, a conveyance under clause (ii) is 
     presumed to reserve to the life estate holder all income from 
     the lease, use, rents, profits, royalties, bonuses, or sales 
     of natural resources during the pendency of the life estate 
     and any right to occupy the tract of land as a home.
       ``(C) Payments.--With respect to payments by a tribal 
     government under subparagraph (A), the Secretary shall--
       ``(i) upon the request of the tribal government, allow a 
     reasonable period of time, not to exceed 2 years, for the 
     tribal government to make payments of amounts due pursuant to 
     subparagraph (A); or
       ``(ii) recognize alternative agreed upon exchanges of 
     consideration between the ineligible non-Indian and the tribe 
     in satisfaction of the payment under subparagraph (A).
       ``(d) Use of Proposed Findings by Tribal Justice Systems.--
       ``(1) Tribal justice system defined.--In this subsection, 
     the term `tribal justice system' has the meaning given that 
     term in section 3 of the Indian Tribal Justice Act (25 U.S.C. 
     3602).
       ``(2) Regulations.--The Secretary by regulation may provide 
     for the use of findings of fact and conclusions of law, as 
     rendered by a tribal justice system, as proposed findings of 
     fact and conclusions of law in the adjudication of probate 
     proceedings by the Department of the Interior.'';
       (4) by striking section 207 and inserting the following:

     ``SEC. 207. DESCENT AND DISTRIBUTION; ESCHEAT OF FRACTIONAL 
                   INTERESTS.

       ``(a) Testamentary Disposition.--
       ``(1) In general.--Except as provided in this section, 
     interests in trust or restricted land may be devised only 
     to--
       ``(A) the decedent's Indian spouse or any other Indian 
     person; or
       ``(B) the Indian tribe with jurisdiction over the land so 
     devised.
       ``(2) Non-indian estate.--Any devise not described in 
     paragraph (1) shall create a non-Indian estate in Indian land 
     as provided for under subsection (c).
       ``(3) Joint tenancy with right of survivorship.--If a 
     testator devises interests in the same

[[Page S7706]]

     parcel of trust or restricted land to more than 1 person, in 
     the absence of express language in the devise to the 
     contrary, the devise shall be presumed to create a joint 
     tenancy with right of survivorship.
       ``(b) Intestate Succession.--
       ``(1) In general.--Subject to paragraphs (2) and (3), with 
     respect to an interest in trust or restricted land passing by 
     intestate succession, only a spouse or heirs of the first or 
     second degree may inherit such an interest.
       ``(2) Non-indian estate.--Notwithstanding paragraph (1), a 
     non-Indian spouse or non-Indian heir of the first or second 
     degree may only receive a non-Indian estate in Indian land as 
     provided for under subsection (c).
       ``(3) Joint tenancy.--
       ``(A) In general.--Unless modified by a tribal probate code 
     that is approved under section 206--
       ``(i) any heirs of the first or second degree that inherit 
     an interest that constitutes 5 percent or more of the 
     undivided interest in a parcel of trust or restricted land, 
     shall hold such interest as tenants in common; and
       ``(ii) any heirs of the first or second degree that inherit 
     an interest that constitutes less than 5 percent of the 
     undivided interest in a parcel of trust or restricted land, 
     shall hold such interest as joint tenants with the right of 
     survivorship.
       ``(B) Renouncing of rights.--The heirs who inherit an 
     interest as tenants in common with a right of survivorship 
     under subparagraph (A)(ii) may renounce their right of 
     survivorship in favor of one or more of their co-owners.
       ``(4) Acquisition of interest by indian co-owners.--An 
     Indian co-owner of a parcel of trust or restricted land may 
     prevent the escheat of an interest in Indian lands for which 
     there is no legal heir by paying into the decedent's estate, 
     the fair market value of the interest in such land. If more 
     than 1 Indian co-owner offers to pay for such interest, the 
     highest bidder shall obtain the interest. If no such offer is 
     made, the interest will escheat to the tribe that exercises 
     jurisdiction over the land.
       ``(c) Non-Indian Estates.--
       ``(1) Rights of non-indian estate holders.--
       ``(A) In general.--An individual who receives a non-Indian 
     estate in Indian land under subsection (a)(2) or (b)(2)--
       ``(i) shall receive a proportionate share of the proceeds 
     of any lease, use, rents, profits, royalties, bonuses, or 
     sale of natural resources based on their share of the 
     decedent's interest in such land; and
       ``(ii) may--

       ``(I) convey or deed by gift the decedent's interest in 
     trust or restricted land to an Indian or the tribe with 
     jurisdiction over the land; or
       ``(II) devise the decedent's interest to either an Indian 
     or an Indian tribe as provided for in subsection (a)(1) or a 
     non-Indian as provided for in subsection (a)(2).

       ``(B) Decedent's interest.--In this section, the term 
     `decedent's interest' means the equitable title held by the 
     last Indian owner of an interest in trust or restricted 
     lands.
       ``(2) Escheat and intestate succession.--If the holder of a 
     non-Indian estate in Indian land dies without having devised 
     or conveyed the interest of the individual under paragraph 
     (1)(A)(ii), the decedent's interest in the trust or 
     restricted land involved shall--
       ``(A) descend to the non-Indian estateholder's Indian 
     spouse or Indian heirs of the first or second degree as 
     provided for in subsection (b)(3); or
       ``(B) in the case of a decedent that does not have an 
     Indian spouse or heir of the first or second degree, descend 
     to the Indian tribe having jurisdiction over the trust or 
     restricted lands.
       ``(3) Acquisition of interest by indian co-owners.--An 
     Indian co-owner of a parcel of trust or restricted land may 
     prevent the escheat of an interest to the tribe under 
     paragraph (2) by paying into the estate of the owner of a 
     non-Indian estate in Indian land the fair market value of the 
     interest. If more than 1 Indian co-owner offers to pay for 
     such interest, the highest bidder shall obtain the interest.
       ``(4) Devise of interest.--If the owner of a non-Indian 
     estate in Indian land devises the interest in such land to a 
     person who is not an Indian, at the discretion of the 
     Secretary and subject to the availability of appropriations, 
     the Secretary may, pursuant to section 213, acquire such 
     interest, with or without the consent of the devisee, by 
     depositing the value of the interest in the estate of the 
     owner of the non-Indian estate in Indian land.
       ``(5) Rule of construction.--
       ``(A) In general.--With respect to a decedent's interest in 
     trust or restricted lands under this subsection, until such 
     time as an Indian or an Indian tribe acquires such interest 
     through inheritance, escheat, or conveyance, the Secretary 
     shall be treated as the holder of the remainder from the life 
     estate.
       ``(B) Limitation.--Subparagraph (A) shall not be construed 
     to authorize the Secretary to retain any of the proceeds from 
     the lease, use, rents, profits, royalties, bonuses, or sale 
     of natural resources with respect to the trust or restricted 
     lands involved.
       ``(6) Descent of off-reservation lands.--
       ``(A) Indian reservation defined.--For purposes of this 
     paragraph, the term `Indian reservation' includes lands 
     located within--
       ``(i)(I) Oklahoma; and
       ``(II) the boundaries of an Indian tribe's former 
     reservation (as defined and determined by the Secretary);
       ``(ii) the boundaries of any Indian tribe's current or 
     former reservation; or
       ``(iii) any area where the Secretary is required to provide 
     special assistance or consideration of a tribe's acquisition 
     of land or interests in land.
       ``(B) Descent.--Upon the death of an individual holding an 
     interest in trust or restricted lands that are located 
     outside the boundaries of an Indian reservation and that are 
     not subject to the jurisdiction of any Indian tribe, that 
     interest shall descend either--
       ``(i) by testate or intestate succession in trust to an 
     Indian; or
       ``(ii) in fee status to any other devises or heirs.
       ``(d) Approval of Agreements.--The official authorized to 
     adjudicate the probate of trust or restricted lands shall 
     have the authority to approve agreements between a decedent's 
     heirs and devisees to consolidate interests in trust or 
     restricted lands. The agreements referred to in the preceding 
     sentence may include trust or restricted lands that are not a 
     part of the decedent's estate that is the subject of the 
     probate. The Secretary may promulgate regulations for the 
     implementation of this subsection.
       ``(e) Estate Planning Assistance.--
       ``(1) In general.--The Secretary shall provide estate 
     planning assistance in accordance with this subsection, to 
     the extent amounts are appropriated for such purpose.
       ``(2) Requirements.--The estate planning assistance 
     provided under paragraph (1) shall be designed to--
       ``(A) inform, advise, and assist Indian landowners with 
     respect to estate planning in order to facilitate the 
     transfer of trust or restricted lands to a devisee or 
     devisees selected by the landowners; and
       ``(B) assist Indian landowners in accessing information 
     pursuant to section 217(g).
       ``(3) Contracts.--In carrying out this section, the 
     Secretary may enter into contracts with entities that have 
     expertise in Indian estate planning and tribal probate codes.
       ``(f) Notification to Indian Tribes and Owners of Trust or 
     Restricted Lands.--
       ``(1) In general.--Not later than 180 days after the date 
     of enactment of the Indian Land Consolidation Act Amendments 
     of 2000, the Secretary shall notify Indian tribes and owners 
     of trust or restricted lands of the amendments made by the 
     Indian Land Consolidation Act Amendments of 2000.
       ``(2) Specifications.--The notice required under paragraph 
     (1) shall be designed to inform Indian owners of trust or 
     restricted land of--
       ``(A) the effect of this Act, with emphasis on the effect 
     of the provisions of this section, on the testate disposition 
     and intestate descent of their interests in trust or 
     restricted land; and
       ``(B) estate planning options available to the owners, 
     including any opportunities for receiving estate planning 
     assistance or advice.
       ``(3) Requirements.--The Secretary shall provide the notice 
     required under paragraph (1)--
       ``(A) by direct mail for those Indians with interests in 
     trust and restricted lands for which the Secretary has an 
     address for the interest holder;
       ``(B) through the Federal Register;
       ``(C) through local newspapers in areas with significant 
     Indian populations, reservation newspapers, and newspapers 
     that are directed at an Indian audience; and
       ``(D) through any other means determined appropriate by the 
     Secretary.
       ``(4) Certification.--After providing notice under this 
     subsection, the Secretary shall certify that the requirements 
     of this subsection have been met and shall publish notice of 
     such certification in the Federal Register.
       ``(5) Effective date.--The provisions of this section shall 
     not apply to the estate of an individual who dies prior to 
     the day that is 365 days after the Secretary makes the 
     certification required under paragraph (4).''; and
       (5) by adding at the end the following:

     ``SEC. 213. PILOT PROGRAM FOR THE ACQUISITION OF FRACTIONAL 
                   INTERESTS.

       ``(a) Acquisition by Secretary.--
       ``(1) In general.--The Secretary may acquire, at the 
     discretion of the Secretary and with the consent of the 
     owner, except as provided in section 207(c)(4), and at fair 
     market value, any fractional interest in trust or restricted 
     lands.
       ``(2) Authority of Secretary.--
       ``(A) In general.--The Secretary shall have the authority 
     to acquire interests in trust or restricted lands under this 
     section during the 3-year period beginning on the date of 
     certification that is referred to in section 207(f)(5).
       ``(B) Required report.--Prior to expiration of the 
     authority provided for in subparagraph (A), the Secretary 
     shall submit the report required under section 218 concerning 
     whether the program to acquire fractional interests should be 
     extended or altered to make resources available to Indian 
     tribes and individual Indian landowners.
       ``(3) Interests held in trust.--Subject to section 214, the 
     Secretary shall immediately hold interests acquired under 
     this Act in trust for the recognized tribal government that 
     exercises jurisdiction over the reservation.
       ``(b) Requirements.--In implementing subsection (a), the 
     Secretary--
       ``(1) shall promote the policies provided for in section 3 
     of the Indian Land Consolidation Act Amendments of 2000;
       ``(2) may give priority to the acquisition of fractional 
     interests representing 2 percent or less of a parcel of trust 
     or restricted land, especially those interests that would 
     have escheated to a tribe but for the Supreme Court's 
     decision in Babbitt v. Youpee, (117 S Ct. 727 (1997));
       ``(3) to the extent practicable--
       ``(A) shall consult with the reservation's recognized 
     tribal government in determining which tracts to acquire on a 
     reservation;
       ``(B) shall coordinate the acquisition activities with the 
     reservation's recognized tribal government's acquisition 
     program, including a tribal land consolidation plan approved 
     pursuant to section 204; and
       ``(C) may enter into agreements (such agreements will not 
     be subject to the provisions of the Indian Self-Determination 
     and Education Assistance Act of 1974) with the reservation's 
     recognized tribal government or a subordinate entity of the 
     tribal government to carry out some or

[[Page S7707]]

     all of the Secretary's land acquisition program; and
       ``(4) shall minimize the administrative costs associated 
     with the land acquisition program.
       ``(c) Sale of Interest to Indian Landowners.--
       ``(1) In general.--At the request of any Indian who owns at 
     least 5 percent of the undivided interest in a parcel of 
     trust or restricted land, the Secretary shall convey an 
     interest acquired under this section to the Indian landowner 
     upon payment by the Indian landowner of the amount paid for 
     the interest by the Secretary.
       ``(2) Limitations.--
       ``(A) Tribal consent.--If an Indian tribe that has 
     jurisdiction over a parcel of trust or restricted land owns 
     10 percent or more of the undivided interests in a parcel of 
     such land, such interest may only be acquired under paragraph 
     (1) with the consent of such Indian tribe.
       ``(B) Limitation.--With respect to a conveyance under this 
     subsection, the Secretary shall not approve an application to 
     terminate the trust status or remove the restrictions of such 
     an interest.

     ``SEC. 214. ADMINISTRATION OF ACQUIRED FRACTIONAL INTERESTS, 
                   DISPOSITION OF PROCEEDS.

       ``(a) In General.--Subject to the conditions described in 
     subsection (b)(1), an Indian tribe receiving a fractional 
     interest under section 213 may, as a tenant in common with 
     the other owners of the trust or restricted lands, lease the 
     interest, sell the resources, consent to the granting of 
     rights-of-way, or engage in any other transaction affecting 
     the trust or restricted land authorized by law.
       ``(b) Conditions.--
       ``(1) In general.--The conditions described in this 
     paragraph are as follows:
       ``(A) Except as provided in subsection (d), until the 
     purchase price paid by the Secretary for an interest referred 
     to in subsection (a) has been recovered, any lease, resource 
     sale contract, right-of-way, or other document evidencing a 
     transaction affecting the interest shall contain a clause 
     providing that all revenue derived from the interest shall be 
     paid to the Secretary.
       ``(B) Subject to subparagraph (C), the Secretary shall 
     deposit any revenue derived under subparagraph (A) into the 
     Acquisition Fund created under section 216.
       ``(C) The Secretary shall deposit any revenue that is paid 
     under subparagraph (A) that is in excess of the purchase 
     price of the fractional interest involved to the credit of 
     the Indian tribe that receives the fractional interest under 
     section 213 and the tribe shall have access to such funds in 
     the same manner as other funds paid to the Secretary for the 
     use of lands held in trust for the tribe.
       ``(D) Notwithstanding any other provision of law, including 
     section 16 of the Act of June 18, 1934 (commonly referred to 
     as the `Indian Reorganization Act') (48 Stat. 987, chapter 
     576; 25 U.S.C. 476), with respect to any interest acquired by 
     the Secretary under section 213, the Secretary may approve a 
     transaction covered under this section on behalf of a tribe 
     until--
       ``(i) the Secretary makes any of the findings under 
     paragraph (2)(A); or
       ``(ii) an amount equal to the purchase price of that 
     interest has been paid into the Acquisition Fund created 
     under section 216.
       ``(2) Exception.--Paragraph (1)(A) shall not apply to any 
     revenue derived from an interest in a parcel of land acquired 
     by the Secretary under section 213 after--
       ``(A) the Secretary makes a finding that--
       ``(i) the costs of administering the interest will equal or 
     exceed the projected revenues for the parcel involved;
       ``(ii) in the discretion of the Secretary, it will take an 
     unreasonable period of time for the parcel to generate 
     revenue that equals the purchase price paid for the interest; 
     or
       ``(iii) a subsequent decrease in the value of land or 
     commodities associated with the land make it likely that the 
     interest will be unable to generate revenue that equals the 
     purchase price paid for the interest in a reasonable time; or
       ``(B) an amount equal to the purchase price of that 
     interest in land has been paid into the Acquisition Fund 
     created under section 216.
       ``(c) Effect on Indian Tribe.--
       ``(1) In general.--Paragraph (2) shall apply with respect 
     to any undivided interest in allotted land held by the 
     Secretary in trust for a tribe if a lease or agreement under 
     subsection (a) is otherwise applicable to such undivided 
     interest by reason of this section even though the Indian 
     tribe did not consent to the lease or agreement.
       ``(2) Application of lease.--The lease or agreement 
     described in paragraph (1) shall apply to the portion of the 
     undivided interest in allotted land described in such 
     paragraph (including entitlement of the Indian tribe to 
     payment under the lease or agreement), and the Indian tribe 
     shall not be treated as being a party to the lease or 
     agreement. Nothing in this section (or in the lease or 
     agreement) shall be construed to affect the sovereignty of 
     the Indian tribe.

     ``SEC. 215. ESTABLISHING FAIR MARKET VALUE.

       ``(a) In General.--For purposes of this Act, the Secretary 
     may develop a system for establishing the fair market value 
     of various types of lands and improvements. Such a system may 
     include determinations of fair market value based on 
     appropriate geographic units as determined by the Secretary. 
     Such system may govern the amounts offered for the purchase 
     of interests in trust or restricted lands under section 213.
       ``(b) Rule of Construction.--Nothing in this section shall 
     be construed to prevent the owner of an interest in trust or 
     restricted lands from appealing a determination of fair 
     market value made in accordance with this section.

     ``SEC. 216. ACQUISITION FUND.

       ``(a) In General.--The Secretary shall establish an 
     Acquisition Fund to--
       ``(1) disburse appropriations authorized to accomplish the 
     purposes of section 213; and
       ``(2) collect all revenues received from the lease, permit, 
     or sale of resources from interests in trust or restricted 
     lands transferred to Indian tribes by the Secretary under 
     section 213.
       ``(b) Deposits; Use.--
       ``(1) In general.--Subject to paragraph (2), all proceeds 
     from leases, permits, or resource sales derived from an 
     interest in trust or restricted lands described in subsection 
     (a)(2) shall--
       ``(A) be deposited in the Acquisition Fund; and
       ``(B) as specified in advance in appropriations Acts, be 
     available for the purpose of acquiring additional fractional 
     interests in trust or restricted lands.
       ``(2) Maximum deposits of proceeds.--With respect to the 
     deposit of proceeds derived from an interest under paragraph 
     (1), the aggregate amount deposited under that paragraph 
     shall not exceed the purchase price of that interest under 
     section 213.

     ``SEC. 217. TRUST AND RESTRICTED LAND TRANSACTIONS.

       ``(a) Policy.--It is the policy of the United States to 
     encourage and assist the consolidation of land ownership 
     through transactions involving individual Indians and between 
     Indians and a reservation's recognized tribal government in a 
     manner consistent with the policy of maintaining the trust 
     status of allotted lands. Nothing in this section shall be 
     construed to apply to or to authorize the sale of trust or 
     restricted lands to a person who is not an Indian.
       ``(b) Sales and Exchanges Between Indians and Between 
     Indians and Indian Tribes.--
       ``(1) In general.--
       ``(A) Estimate of value.--Notwithstanding any other 
     provision of law and only after the Indian selling or 
     exchanging an interest in land has been provided with an 
     estimate of the value of the interest of the Indian pursuant 
     to this section--
       ``(i) the sale or exchange of an interest in trust or 
     restricted land may be made for an amount that is less than 
     the fair market value of that interest; and
       ``(ii) the approval of a transaction that is in compliance 
     with this section shall not constitute a breach of trust by 
     the Secretary.
       ``(B) Waiver of requirement.--The requirement for an 
     estimate of value under subparagraph (A) may be waived in 
     writing by an Indian selling or exchanging an interest in 
     land with an Indian person who is the owner's spouse, 
     brother, sister, lineal ancestor of Indian blood, lineal 
     descendant, or collateral heir.
       ``(2) Limitation.--For a period of 5 years after the 
     Secretary approves a conveyance pursuant to this subsection, 
     the Secretary shall not approve an application to terminate 
     the trust status or remove the restrictions of such an 
     interest.
       ``(c) Acquisition of Interest by Secretary.--An Indian, or 
     the recognized tribal government of a reservation, in 
     possession of an interest in trust or restricted lands, at 
     least a portion of which is in trust or restricted status on 
     the date of enactment of the Indian Land Consolidation Act 
     Amendments of 2000 and located within a reservation, may 
     request that the interest be taken into trust by the 
     Secretary. Upon such a request, the Secretary shall forthwith 
     take such interest into trust.
       ``(d) Status of Lands.--The sale or exchange of an interest 
     in trust or restricted land under this section shall not 
     affect the status of that land as trust or restricted land.
       ``(e) Gift Deeds.--
       ``(1) In general.--An individual owner of an interest in 
     trust or restricted land may convey that interest by gift 
     deed to--
       ``(A) an individual Indian; or
       ``(B) the Indian tribe that exercises jurisdiction over 
     that land.
       ``(2) Special rule.--With respect to any gift deed conveyed 
     under this section, the Secretary shall not require an 
     appraisal and the transaction shall be consistent with this 
     Act and any other provision of Federal law.
       ``(f) No Termination.--During the 7-year period beginning 
     on the date on which the Secretary approves a conveyance of 
     an interest in trust or restricted land under subsection (e), 
     the Secretary shall not approve an application to terminate 
     the trust status of, or remove the restrictions on, such an 
     interest.
       ``(g) Land Ownership Information.--Notwithstanding any 
     other provision of law, the names and mailing addresses of 
     the Indian owners of trust or restricted lands, and 
     information on the location of the parcel and the percentage 
     of undivided interest owned by each individual, or of any 
     interest in trust or restricted lands, shall, upon written 
     request, be made available to--
       ``(1) other Indian owners of interests in trust or 
     restricted lands within the same reservation;
       ``(2) the tribe that exercises jurisdiction over the 
     reservation where the parcel is located or any person who is 
     eligible for membership in that tribe; and
       ``(3) prospective applicants for the leasing, use, or 
     consolidation of such trust or restricted land or the 
     interest in trust or restricted lands.

     ``SEC. 218. REPORTS TO CONGRESS.

       ``(a) In General.--Prior to expiration of the authority 
     provided for in section 213(a)(2)(A), the Secretary, after 
     consultation with Indian tribes and other interested parties, 
     shall submit to the Committee on Indian Affairs and the 
     Committee on Energy and Natural Resources of the Senate and 
     the Committee on Resources of the House of Representatives a 
     report that indicates, for the period covered by the report--
       ``(1) the number of fractional interests in trust or 
     restricted lands acquired; and

[[Page S7708]]

       ``(2) the impact of the resulting reduction in the number 
     of such fractional interests on the financial and realty 
     recordkeeping systems of the Bureau of Indian Affairs.
       ``(b) Report.--The reports described in subsection (a) and 
     section 213(a) shall contain findings as to whether the 
     program under this Act to acquire fractional interests in 
     trust or restricted lands should be extended and whether such 
     program should be altered to make resources available to 
     Indian tribes and individual Indian landowners.

     ``SEC. 219. APPROVAL OF LEASES, RIGHTS-OF-WAY, AND SALES OF 
                   NATURAL RESOURCES.

       ``(a) Approval by the Secretary.--
       ``(1) In general.--Notwithstanding any other provision of 
     law, the Secretary may approve any lease or agreement that 
     affects individually owned allotted land, if--
       ``(A) the owners of not less than the applicable percentage 
     (determined under subsection (b)) of the undivided interest 
     in the allotted land that is covered by the lease or 
     agreement consent in writing to the lease or agreement; and
       ``(B) the Secretary determines that approving the lease or 
     agreement is in the best interest of the owners of the 
     undivided interest in the allotted land.
       ``(2) Rule of construction.--Nothing in this section shall 
     be construed to apply to leases involving coal or uranium.
       ``(b) Applicable Percentage.--
       ``(1) Percentage interest.--The applicable percentage 
     referred to in subsection (a)(1) shall be determined as 
     follows:
       ``(A) If there are 5 or fewer owners of the undivided 
     interest in the allotted land, the applicable percentage 
     shall be 100 percent.
       ``(B) If there are more than 5 such owners, but fewer than 
     11 such owners, the applicable percentage shall be 80 
     percent.
       ``(C) If there are more than 10 such owners, but fewer than 
     20 such owners, the applicable percentage shall be 60 
     percent.
       ``(D) If there are 20 or more such owners, the applicable 
     percentage shall be a majority of the interests in the 
     allotted land.
       ``(2) Determination of owners.--
       ``(A) In general.--For purposes of this subsection, in 
     determining the number of owners of, and their interests in, 
     the undivided interest in the allotted land with respect to a 
     lease or agreement, the Secretary shall make such 
     determination based on the records of the Department of the 
     Interior that identify the owners of such lands and their 
     interests and the number of owners of such land on the date 
     on which the lease or agreement involved is submitted to the 
     Secretary under this section.
       ``(B) Rule of construction.--Nothing in subparagraph (A) 
     shall be construed to authorize the Secretary to treat an 
     Indian tribe as the owner of an interest in allotted land 
     that did not escheat to the tribe pursuant to section 207 as 
     a result of the Supreme Court's decision in Babbitt v. 
     Youpee, (117 S Ct. 727 (1997)).
       ``(c) Authority of Secretary to Sign Lease or Agreement on 
     Behalf of Certain Owners.--The Secretary may give written 
     consent to a lease or agreement under subsection (a)--
       ``(1) on behalf of the individual Indian owner if the owner 
     is deceased and the heirs to, or devisees of, the interest of 
     the deceased owner have not been determined; or
       ``(2) on behalf of any heir or devisee referred to in 
     paragraph (1) if the heir or devisee has been determined but 
     cannot be located
       ``(d) Effect of Approval.--
       ``(1) Application to all parties.--
       ``(A) In general.--Subject to paragraph (2), a lease or 
     agreement approved by the Secretary under subsection (a) 
     shall be binding on the parties described in subparagraph 
     (B), to the same extent as if all of the owners of the 
     undivided interest in allotted land covered under the lease 
     or agreement consented to the lease or agreement.
       ``(B) Description of parties.--The parties referred to in 
     subparagraph (A) are--
       ``(i) the owners of the undivided interest in the allotted 
     land covered under the lease or agreement referred to in such 
     subparagraph; and
       ``(ii) all other parties to the lease or agreement.
       ``(2) Effect on indian tribe.--
       ``(A) In general.--Subparagraph (B) shall apply with 
     respect to any undivided interest in allotted land held by 
     the Secretary in trust for a tribe if a lease or agreement 
     under subsection (a) is otherwise applicable to such 
     undivided interest by reason of this section even though the 
     Indian tribe did not consent to the lease or agreement.
       ``(B) Application of lease.--The lease or agreement 
     described in subparagraph (A) shall apply to the portion of 
     the undivided interest in allotted land described in such 
     paragraph (including entitlement of the Indian tribe to 
     payment under the lease or agreement), and the Indian tribe 
     shall not be treated as being a party to the lease or 
     agreement. Nothing in this section (or in the lease or 
     agreement) shall be construed to affect the sovereignty of 
     the Indian tribe.
       ``(e) Distribution of Proceeds.--
       ``(1) In general.--The proceeds derived from a lease or 
     agreement that is approved by the Secretary under subsection 
     (a) shall be distributed to all owners of undivided interest 
     in the allotted land covered under the lease or agreement.
       ``(2) Determination of amounts distributed.--The amount of 
     the proceeds under paragraph (1) that are distributed to each 
     owner under that paragraph shall be determined in accordance 
     with the portion of the undivided interest in the allotted 
     land covered under the lease or agreement that is owned by 
     that owner.
       ``(f) Rule of Construction.--Nothing in this section shall 
     be construed to amend or modify the provisions of Public Law 
     105-188 (25 U.S.C. 396 note), the American Indian 
     Agricultural Resources Management Act (25 U.S.C. 3701 et 
     seq.) or any other Act that provides specific standards for 
     the percentage of ownership interest that must approve a 
     lease or agreement on a specified reservation.

     ``SEC. 220. APPLICATION TO ALASKA.

       ``(a) Findings.--Congress find that--
       ``(1) numerous academic and governmental organizations have 
     studied the nature and extent of fractionated ownership of 
     Indian land outside of Alaska and have proposed solutions to 
     this problem; and
       ``(2) despite these studies, there has not been a 
     comparable effort to analyze the problem, if any, of 
     fractionated ownership in Alaska.
       ``(b) Application of Act to Alaska.--Except as provided in 
     this section, this Act shall not apply to land located within 
     Alaska.
       ``(c) Rule of Construction.--Nothing in this section shall 
     be construed to constitute a ratification of any 
     determination by any agency, instrumentality, or court of the 
     United States that may support the assertion of tribal 
     jurisdiction over allotment lands or interests in such land 
     in Alaska.''.

     SEC. 5. JUDICIAL REVIEW.

       Notwithstanding section 207(f)(5) of the Indian Land 
     Consolidation Act (25 U.S.C. 2206(f)(5)), after the Secretary 
     of Interior provides the certification required under section 
     207(f)(4) of such Act, the owner of an interest in trust or 
     restricted land may bring an administrative action to 
     challenge the application of such section 207 to their 
     interest in trust or restricted lands, and may seek judicial 
     review of the final decision of the Secretary of Interior 
     with respect to such challenge.

     SEC. 6. AUTHORIZATION OF APPROPRIATIONS.

       There are authorized to be appropriated not to exceed 
     $8,000,000 for fiscal year 2001 and each subsequent fiscal 
     year to carry out the provisions of this Act (and the 
     amendments made by this Act) that are not otherwise funded 
     under the authority provided for in any other provision of 
     Federal law.

     SEC. 7. CONFORMING AMENDMENTS.

       (a) Patents Held in Trust.--The Act of February 8, 1887 (24 
     Stat. 388) is amended--
       (1) by repealing sections 1, 2, and 3 (25 U.S.C. 331, 332, 
     and 333); and
       (2) in the second proviso of section 5 (25 U.S.C. 348)--
       (A) by striking ``and partition''; and
       (B) by striking ``except'' and inserting ``except as 
     provided by the Indian Land Consolidation Act or a tribal 
     probate code approved under such Act and except''.
       (b) Ascertainment of Heirs and Disposal of Allotments.--The 
     Act of June 25, 1910 (36 Stat. 855) is amended--
       (1) in the first sentence of section 1 (25 U.S.C. 372), by 
     striking ``under'' and inserting ``under the Indian Land 
     Consolidation Act or a tribal probate code approved under 
     such Act and pursuant to''; and
       (2) in the first sentence of section 2 (25 U.S.C. 373), by 
     striking ``with regulations'' and inserting ``with the Indian 
     Land Consolidation Act or a tribal probate code approved 
     under such Act and regulations''.
       (c) Transfer of Lands.--Section 4 of the Act of June 18, 
     1934 (25 U.S.C. 464) is amended by striking ``trust:'' and 
     inserting ``trust, except as provided by the Indian Land 
     Consolidation Act:''.


                           Amendment No. 4019

            (Purpose: To provide for a complete substitute)

  Mr. DeWINE. Mr. President, I send an amendment to the desk and ask 
for its immediate consideration.
  The PRESIDING OFFICER. The clerk will report.
  The legislative clerk read as follows:

       The Senator from Ohio [Mr. DeWine], for Mr. Campbell, 
     proposes an amendment numbered 4019.

  (The text of the amendment is printed in today's Record Under 
``Amendments Submitted.'')
  Mr. CAMPBELL. Mr. President, on September 15, 1999, I introduced S. 
1586, the Indian Land Consolidation Act Amendments of 2000. At that 
time I pledged to work with all interested parties to address the 
vexing problems associated with fractionated ownership of Indian lands. 
These lands were carved out of Indian reservations in the late 19th and 
early 20th centuries. Within only a few generations, the ownership of 
the allotments was divided among dozens of the heirs of the original 
owners of these parcels. This situation has only grown worse as each 
decade passes.
  In 1983, Congress tried to solve fractionation when it enacted the 
Indian Land Consolidation Act (ILCA), P.L. 94-459. The ILCA prevented 
small undivided interests from passing by either devise or descent. 
Only those interests that produced more than $100 in revenue in the 
preceding year were exempted. In 1987 the Supreme Court ruled in Hodel 
v. Irving, 481 U.S. 704, that those provisions of the ILCA violated the 
5th Amendment by taking property without just compensation.
  Then in 1992, the General Accounting Office surveyed 12 Indian 
reservations with fractionated ownership and reported to Congress:


[[Page S7709]]


       BIA's workload for ownership records is substantial. The 
     agency maintains about 1.1 million records for the 12 
     reservations. Over 60 percent of the records represent small 
     ownership interests of Indian individuals--some as small as 
     one four thousandth of 1 percent. (GAO/RCED-92-96BR)

  In 1994, the Department of Interior began a national consultation 
with tribal leaders and landowners concerning the need to address 
fractionation through a comprehensive legislative proposal. Based on 
these consultations, in June 1997, the Administration submitted a 
legislative proposal on land fractionation to Congress.
  Also in 1997, the Supreme Court ruled in Babbitt v. Youpee, 519 U.S. 
234 that the 1984 amendments to the ILCA did not go far enough to alter 
the Court's previous finding that the ILCA violated the 5th Amendment.
  On November 4, 2000, the Senate Indian Affairs Committee (SCIA) held 
a joint hearing on S. 1586 with the House Committee on Resources.
  On March 23, 2000, the SCIA reported S. 1586. Relying on a suggestion 
in the Supreme Court's 1987 opinion, the reported bill allowed an owner 
to devise fractional interests of less than 2%, but eliminated the 
intestate descent of such interests. These interests were allowed to 
``escheat'' to the tribe exercising jurisdiction over the parcel. 
Because of the controversy associated with the escheat provision, 
Committee staff continued to work with interested parties to develop a 
proposal for addressing fractionation without the use of escheat.
  On June 14, 2000, the SCIA reported S. 1586 with an amendment in the 
nature of a substitute. In response to concerns that probate reform 
should be comprehensive, the reported version of the bill was not 
limited to smaller fractional interests. Instead the bill addressed 
both the problem of fractionated ownership and the loss of trust land 
through devise and descent. The bill provided that non-Indian heirs and 
devisees would receive ``non-Indian interests in Indian land,'' rather 
than fee title to trust and restricted land. In most instances, these 
interests would operate as if they were a life estate in the interest.
  S. 1586 was endorsed on June 28, 2000 by the National Congress of 
American Indians (NCAI), the largest and most representative tribal 
organization in the Nation, through Resolution Jun-00-044. The 
Resolution requested that the bill's sponsor continue to work with NCAI 
to address technical issues.
  Throughout June and July, a concerted effort has been made to consult 
with Indian tribes, landowners, and inter-tribal organizations, BIA 
personnel, and interested academics to clarify and simplify the bill. 
For example, in many instances a ``non-Indian estate in Indian land'' 
might prove a more complicated interest than was necessary to achieve 
the bill's objective. It was recommended that the bill's non-Indian 
estate should simply be replaced by an ordinary life estate.
  A proposed amendment in the nature of a substitute has been produced. 
The amendment differs from the version reported by the SCIA on June 14, 
2000 in the following ways:
  The definition of ``Indian'' is amended. As reported on June 14, 
2000, the definition included members of Indian tribes and those 
eligible for membership in an Indian tribe. The proposed amendment adds 
a provision for: ``any person who has been found to meet the definition 
of `Indian' under a provision of Federal law if the Secretary 
determines that using such law's definition of Indian is consistent 
with the purposes of this Act.'' This amendment will ensure that 
individuals who are treated as Indians for other purposes of Federal 
law will also be treated as Indian for purposes of this Act.
  Section 207 dealing with the devise and descent of interests in trust 
and restricted lands has been rewritten to provide that non-Indians 
inheriting interest in trust and restricted land will now receive life 
estates in place of ``non-Indian interests in Indian land.'' The owner 
of allotted land who does not have any Indian heirs may devise his 
interest to non-Indian heirs. Such a devise may then reserve a life 
estate if the remainder interest is acquired by the tribe under section 
206(c).
  Section 206(c), which allows Indian tribes to acquire interests 
devised to non-Indians has been rewritten for clarity.
  As reported on June 14, 2000, S. 1586 provided that interests of 5% 
or less that pass by intestate succession would be inherited with the 
right of survivorship to prevent further fractionation. Since the BIA 
is in the process of reforming its trust and probate management system, 
the proposed amendment provides that this provision will not take 
effect until the Secretary certifies that the BIA has a process in 
place to track interests held with the right of survivorship.
  A separate subsection concerning gift deeds is now incorporated into 
another section that allows the Secretary to approve conveyance of 
trust land to Indians. Also, trust land may now be conveyed to Indians 
by a person of Indian ancestry who owns trust land, but does not meet 
the ILCA''s definition of Indian.
  A second title to S. 1586 includes the text from S. 1315 and its 
House counterpart H.R. 3181, which allow the Secretary of Interior to 
approve oil and gas leases on lands allotted to individual Navajo 
Indians, as long as the specified majority of owners of undivided 
interests approve the transaction. S. 1315 and H.R. 3181 were 
introduced at the request of the Navajo Allottee Association, Shii Shi 
Keyah.
  I have described S. 1586 as the ``cornerstone'' of the Committee's 
efforts to reform the BIA's management of land fractionation. Without 
this bill, interests will continue to fractionate. That is why the 
Department of the Interior continues to support this bill, even though 
it differs greatly from the Department's original proposal.
  As far back as 1934, a member of the House of Representatives 
referred to fractionated interests as: ``a meaningless system of minute 
partitioning in which all thought of the possible use of the land to 
satisfy human needs is lost in a mathematical haze of bookkeeping.'' S. 
1586 provides a framework that will allow the Federal government, 
tribal governments, and those who own interests in allotments to begin 
addressing these issues.
  Mr. DeWINE. Mr. President, I ask unanimous consent that the amendment 
be agreed to, the committee amendment be agreed to, as amended, the 
bill be read the third time and passed, the motion to reconsider be 
laid upon the table, and any statements relating to the bill be printed 
in the Record.
  The PRESIDING OFFICER. Without objection, it is so ordered.
  The amendment (No. 4019) was agreed to.
  The committee amendment, in the nature of a substitute, as amended, 
was agreed to.
  The bill (S. 1586), as amended, was read the third time and passed.

                                S. 1586

       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 ``Indian Land Consolidation 
     Act Amendments of 2000''.

                   TITLE I--INDIAN LAND CONSOLIDATION

     SEC. 101. FINDINGS.

       Congress finds that--
       (1) in the 1800's and early 1900's, the United States 
     sought to assimilate Indian people into the surrounding non-
     Indian culture by allotting tribal lands to individual 
     members of Indian tribes;
       (2) as a result of the allotment Acts and related Federal 
     policies, over 90,000,000 acres of land have passed from 
     tribal ownership;
       (3) many trust allotments were taken out of trust status, 
     often without their owners consent;
       (4) without restrictions on alienation, allotment owners 
     were subject to exploitation and their allotments were often 
     sold or disposed of without any tangible or enduring benefit 
     to their owners;
       (5) the trust periods for trust allotments have been 
     extended indefinitely;
       (6) because of the inheritance provisions in the original 
     treaties or allotment Acts, the ownership of many of the 
     trust allotments that have remained in trust status has 
     become fractionated into hundreds or thousands of undivided 
     interests, many of which represent 2 percent or less of the 
     total interests;
       (7) Congress has authorized the acquisition of lands in 
     trust for individual Indians, and many of those lands have 
     also become fractionated by subsequent inheritance;
       (8) the acquisitions referred to in paragraph (7) continue 
     to be made;
       (9) the fractional interests described in this section 
     often provide little or no return to the beneficial owners of 
     those interests and the administrative costs borne by the 
     United States for those interests are inordinately high;
       (10) in Babbitt v. Youpee (117 S Ct. 727 (1997)), the 
     United States Supreme Court

[[Page S7710]]

     found the application of section 207 of the Indian Land 
     Consolidation Act (25 U.S.C. 2206) to the facts presented in 
     that case to be unconstitutional, forcing the Department of 
     the Interior to address the status of thousands of undivided 
     interests in trust and restricted lands;
       (11)(A) on February 19, 1999, the Secretary of Interior 
     issued a Secretarial Order which officially reopened the 
     probate of all estates where an interest in land was ordered 
     to escheat to an Indian tribe pursuant to section 207 of the 
     Indian Land Consolidation Act (25 U.S.C. 2206); and
       (B) the Secretarial Order also directed appropriate 
     officials of the Bureau of Indian Affairs to distribute such 
     interests ``to the rightful heirs and beneficiaries without 
     regard to 25 U.S.C. 2206'';
       (12) in the absence of comprehensive remedial legislation, 
     the number of the fractional interests will continue to grow 
     exponentially;
       (13) the problem of the fractionation of Indian lands 
     described in this section is the result of a policy of the 
     Federal Government, cannot be solved by Indian tribes, and 
     requires a solution under Federal law.
       (14) any devise or inheritance of an interest in trust or 
     restricted Indian lands is a matter of Federal law; and
       (15) consistent with the Federal policy of tribal self-
     determination, the Federal Government should encourage the 
     recognized tribal government that exercises jurisdiction over 
     a reservation to establish a tribal probate code for that 
     reservation.

     SEC. 102. DECLARATION OF POLICY.

       It is the policy of the United States--
       (1) to prevent the further fractionation of trust 
     allotments made to Indians;
       (2) to consolidate fractional interests and ownership of 
     those interests into usable parcels;
       (3) to consolidate fractional interests in a manner that 
     enhances tribal sovereignty;
       (4) to promote tribal self-sufficiency and self-
     determination; and
       (5) to reverse the effects of the allotment policy on 
     Indian tribes.

     SEC. 103. AMENDMENTS TO THE INDIAN LAND CONSOLIDATION ACT.

       The Indian Land Consolidation Act (25 U.S.C. 2201 et seq.) 
     is amended--
       (1) in section 202--
       (A) in paragraph (1), by striking ``(1) `tribe' '' and 
     inserting ``(1) `Indian tribe' or `tribe' '';
       (B) by striking paragraph (2) and inserting the following:
       ``(2) `Indian' means any person who is a member of any 
     Indian tribe or is eligible to become a member of any Indian 
     tribe, or any person who has been found to meet the 
     definition of `Indian' under a provision of Federal law if 
     the Secretary determines that using such law's definition of 
     Indian is consistent with the purposes of this Act;'';
       (C) by striking ``and'' at the end of paragraph (3);
       (D) by striking the period at the end of paragraph (4) and 
     inserting ``; and''; and
       (E) by adding at the end the following:
       ``(5) `heirs of the first or second degree' means parents, 
     children, grandchildren, grandparents, brothers and sisters 
     of a decedent.'';
       (2) in section 205--
       (A) in the matter preceding paragraph (1)--
       (i) by striking ``Any Indian'' and inserting ``(a) In 
     General.--Subject to subsection (b), any Indian'';
       (ii) by striking the colon and inserting the following: ``. 
     Interests owned by an Indian tribe in a tract may be included 
     in the computation of the percentage of ownership of the 
     undivided interests in that tract for purposes of determining 
     whether the consent requirement under the preceding sentence 
     has been met.'';
       (iii) by striking ``: Provided, That--''; and inserting the 
     following:
       ``(b) Conditions Applicable to Purchase.--Subsection (a) 
     applies on the condition that--'';
       (B) in paragraph (2)--
       (i) by striking ``If,'' and inserting ``if''; and
       (ii) by adding ``and'' at the end; and
       (C) by striking paragraph (3) and inserting the following:
       ``(3) the approval of the Secretary shall be required for a 
     land sale initiated under this section, except that such 
     approval shall not be required with respect to a land sale 
     transaction initiated by an Indian tribe that has in effect a 
     land consolidation plan that has been approved by the 
     Secretary under section 204.'';
       (3) by striking section 206 and inserting the following:

     ``SEC. 206. TRIBAL PROBATE CODES; ACQUISITIONS OF FRACTIONAL 
                   INTERESTS BY TRIBES.

       ``(a) Tribal Probate Codes.--
       ``(1) In general.--Notwithstanding any other provision of 
     law, any Indian tribe may adopt a tribal probate code to 
     govern descent and distribution of trust or restricted lands 
     that are--
       ``(A) located within that Indian tribe's reservation; or
       ``(B) otherwise subject to the jurisdiction of that Indian 
     tribe.
       ``(2) Possible inclusions.--A tribal probate code referred 
     to in paragraph (1) may include--
       ``(A) rules of intestate succession; and
       ``(B) other tribal probate code provisions that are 
     consistent with Federal law and that promote the policies set 
     forth in section 102 of the Indian Land Consolidation Act 
     Amendments of 2000.
       ``(3) Limitations.--The Secretary shall not approve a 
     tribal probate code if such code prevents an Indian person 
     from inheriting an interest in an allotment that was 
     originally allotted to his or her lineal ancestor.
       ``(b) Secretarial Approval.--
       ``(1) In general.--Any tribal probate code enacted under 
     subsection (a), and any amendment to such a tribal probate 
     code, shall be subject to the approval of the Secretary.
       ``(2) Review and approval.--
       ``(A) In general.--Each Indian tribe that adopts a tribal 
     probate code under subsection (a) shall submit that code to 
     the Secretary for review. Not later than 180 days after a 
     tribal probate code is submitted to the Secretary under this 
     paragraph, the Secretary shall review and approve or 
     disapprove that tribal probate code.
       ``(B) Consequence of failures to approve or disapprove a 
     tribal probate code.--If the Secretary fails to approve or 
     disapprove a tribal probate code submitted for review under 
     subparagraph (A) by the date specified in that subparagraph, 
     the tribal probate code shall be deemed to have been approved 
     by the Secretary, but only to the extent that the tribal 
     probate code is consistent with Federal law and promotes the 
     policies set forth in section 102 of the Indian Land 
     Consolidation Act Amendments of 2000.
       ``(C) Consistency of tribal probate code with act.--The 
     Secretary may not approve a tribal probate code, or any 
     amendment to such a code, under this paragraph unless the 
     Secretary determines that the tribal probate code promotes 
     the policies set forth in section 102 of the Indian Land 
     Consolidation Act Amendments of 2000.
       ``(D) Explanation.--If the Secretary disapproves a tribal 
     probate code, or an amendment to such a code, under this 
     paragraph, the Secretary shall include in the notice of 
     disapproval to the Indian tribe a written explanation of the 
     reasons for the disapproval.
       ``(E) Amendments.--
       ``(i) In general.--Each Indian tribe that amends a tribal 
     probate code under this paragraph shall submit the amendment 
     to the Secretary for review and approval. Not later than 60 
     days after receiving an amendment under this subparagraph, 
     the Secretary shall review and approve or disapprove the 
     amendment.
       ``(ii) Consequence of failure to approve or disapprove an 
     amendment.--If the Secretary fails to approve or disapprove 
     an amendment submitted under clause (i), the amendment shall 
     be deemed to have been approved by the Secretary, but only to 
     the extent that the amendment is consistent with Federal law 
     and promotes the policies set forth in section 102 of the 
     Indian Land Consolidation Act of 2000.
       ``(3) Effective dates.--A tribal probate code approved 
     under paragraph (2) shall become effective on the later of--
       ``(A) the date specified in section 207(g)(5); or
       ``(B) 180 days after the date of approval.
       ``(4) Limitations.--
       ``(A) Tribal probate codes.--Each tribal probate code 
     enacted under subsection (a) shall apply only to the estate 
     of a decedent who dies on or after the effective date of the 
     tribal probate code.
       ``(B) Amendments to tribal probate codes.--With respect to 
     an amendment to a tribal probate code referred to in 
     subparagraph (A), that amendment shall apply only to the 
     estate of a decedent who dies on or after the effective date 
     of the amendment.
       ``(5) Repeals.--The repeal of a tribal probate code shall--
       ``(A) not become effective earlier than the date that is 
     180 days after the Secretary receives notice of the repeal; 
     and
       ``(B) apply only to the estate of a decedent who dies on or 
     after the effective date of the repeal.
       ``(c) Authority Available to Indian Tribes.--
       ``(1) In general.--If the owner of an interest in trust or 
     restricted land devises an interest in such land to a non-
     Indian under section 207(a)(6)(A), the Indian tribe that 
     exercises jurisdiction over the parcel of land involved may 
     acquire such interest by paying to the Secretary the fair 
     market value of such interest, as determined by the Secretary 
     on the date of the decedent's death. The Secretary shall 
     transfer such payment to the devisee.
       ``(2) Limitation.--
       ``(A) In general.--Paragraph (1) shall not apply to an 
     interest in trust or restricted land if, while the decedent's 
     estate is pending before the Secretary, the non-Indian 
     devisee renounces the interest in favor of an Indian person.
       ``(B) Reservation of life estate.--A non-Indian devisee 
     described in subparagraph (A) or a non-Indian devisee 
     described in section 207(a)(6)(B), may retain a life estate 
     in the interest involved, including a life estate to the 
     revenue produced from the interest. The amount of any payment 
     required under paragraph (1) shall be reduced to reflect the 
     value of any life estate reserved by a non-Indian devisee 
     under this subparagraph.
       ``(3) Payments.--With respect to payments by an Indian 
     tribe under paragraph (1), the Secretary shall--
       ``(A) upon the request of the tribe, allow a reasonable 
     period of time, not to exceed 2 years, for the tribe to make 
     payments of amounts due pursuant to paragraph (1); or
       ``(B) recognize alternative agreed upon exchanges of 
     consideration or extended payment terms between the non-
     Indian devisee

[[Page S7711]]

     described in paragraph (1) and the tribe in satisfaction of 
     the payment under paragraph (1).
       ``(d) Use of Proposed Findings by Tribal Justice Systems.--
       ``(1) Tribal justice system defined.--In this subsection, 
     the term `tribal justice system' has the meaning given that 
     term in section 3 of the Indian Tribal Justice Act (25 U.S.C. 
     3602).
       ``(2) Regulations.--The Secretary by regulation may provide 
     for the use of findings of fact and conclusions of law, as 
     rendered by a tribal justice system, as proposed findings of 
     fact and conclusions of law in the adjudication of probate 
     proceedings by the Department of the Interior.'';
       (4) by striking section 207 and inserting the following:

     ``SEC. 207. DESCENT AND DISTRIBUTION.

       ``(a) Testamentary Disposition.--
       ``(1) In general.--Interests in trust or restricted land 
     may be devised only to--
       ``(A) the decedent's Indian spouse or any other Indian 
     person; or
       ``(B) the Indian tribe with jurisdiction over the land so 
     devised.
       ``(2) Life estate.--Any devise of an interest in trust or 
     restricted land to a non-Indian shall create a life estate 
     with respect to such interest.
       ``(3) Remainder.--
       ``(A) In general.--Except where the remainder from the life 
     estate referred to in paragraph (2) is devised to an Indian, 
     such remainder shall descend to the decedent's Indian spouse 
     or Indian heirs of the first or second degree pursuant to the 
     applicable law of intestate succession.
       ``(B) Descent of interests.--If a decedent described in 
     subparagraph (A) has no Indian heirs of the first or second 
     degree, the remainder interest described in such subparagraph 
     shall descend to any of the decedent's collateral heirs of 
     the first or second degree, pursuant to the applicable laws 
     of intestate succession, if on the date of the decedent's 
     death, such heirs were a co-owner of an interest in the 
     parcel of trust or restricted land involved.
       ``(C) Definition.--For purposes of this section, the term 
     `collateral heirs of the first or second degree' means the 
     brothers, sisters, aunts, uncles, nieces, nephews, and first 
     cousins, of a decedent.
       ``(4) Descent to tribe.--If the remainder interest 
     described in paragraph (3)(A) does not descend to an Indian 
     heir or heirs it shall descend to the Indian tribe that 
     exercises jurisdiction over the parcel of trust or restricted 
     lands involved, subject to paragraph (5).
       ``(5) Acquisition of interest by indian co-owners.--An 
     Indian co-owner of a parcel of trust or restricted land may 
     prevent the descent of an interest in Indian land to an 
     Indian tribe under paragraph (4) by paying into the 
     decedent's estate the fair market value of the interest in 
     such land. If more than 1 Indian co-owner offers to pay for 
     such an interest, the highest bidder shall obtain the 
     interest. If payment is not received before the close of the 
     probate of the decedent's estate, the interest shall descend 
     to the tribe that exercises jurisdiction over the parcel.
       ``(6) Special rule.--
       ``(A) In general.--Notwithstanding paragraph (2), an owner 
     of trust or restricted land who does not have an Indian 
     spouse, Indian lineal descendant, an Indian heir of the first 
     or second degree, or an Indian collateral heir of the first 
     or second degree, may devise his or her interests in such 
     land to any of the decedent's heirs of the first or second 
     degree or collateral heirs of the first or second degree.
       ``(B) Acquisition of interest by tribe.--An Indian tribe 
     that exercises jurisdiction over an interest in trust or 
     restricted land described in subparagraph (A) may acquire any 
     interest devised to a non-Indian as provided for in section 
     206(c).
       ``(b) Intestate Succession.--
       ``(1) In general.--An interest in trust or restricted land 
     shall pass by intestate succession only to a decedent's 
     spouse or heirs of the first or second degree, pursuant to 
     the applicable law of intestate succession.
       ``(2) Life estate.--Notwithstanding paragraph (1), with 
     respect to land described in such paragraph, a non-Indian 
     spouse or non-Indian heirs of the first or second degree 
     shall only receive a life estate in such land.
       ``(3) Descent of interests.--If a decedent described in 
     paragraph (1) has no Indian heirs of the first or second 
     degree, the remainder interest from the life estate referred 
     to in paragraph (2) shall descend to any of the decedent's 
     collateral Indian heirs of the first or second degree, 
     pursuant to the applicable laws of intestate succession, if 
     on the date of the decedent's death, such heirs were a co-
     owner of an interest in the parcel of trust or restricted 
     land involved.
       ``(4) Descent to tribe.--If the remainder interest 
     described in paragraph (3) does not descend to an Indian heir 
     or heirs it shall descend to the Indian tribe that exercises 
     jurisdiction over the parcel of trust or restricted lands 
     involved, subject to paragraph (5).
       ``(5) Acquisition of interest by indian co-owners.--An 
     Indian co-owner of a parcel of trust or restricted land may 
     prevent the descent of an interest in such land for which 
     there is no heir of the first or second degree by paying into 
     the decedent's estate the fair market value of the interest 
     in such land. If more than 1 Indian co-owner makes an offer 
     to pay for such an interest, the highest bidder shall obtain 
     the interest. If no such offer is made, the interest shall 
     descend to the Indian tribe that exercises jurisdiction over 
     the parcel of land involved.
       ``(c) Joint Tenancy; Right of Survivorship.--
       ``(1) Testate.--If a testator devises interests in the same 
     parcel of trust or restricted lands to more than 1 person, in 
     the absence of express language in the devise to the 
     contrary, the devise shall be presumed to create joint 
     tenancy with the right of survivorship in the land involved.
       ``(2) Intestate.--
       ``(A) In general.--Any interest in trust or restricted land 
     that--
       ``(i) passes by intestate succession to more than 1 person, 
     including a remainder interest under subsection (a) or (b) of 
     section 207; and
       ``(ii) that constitutes 5 percent or more of the undivided 
     interest in a parcel of trust or restricted land;
     shall be held as tenancy in common.
       ``(B) Limited interest.--Any interest in trust or 
     restricted land that--
       ``(i) passes by intestate succession to more than 1 person, 
     including a remainder interest under subsection (a) or (b) of 
     section 207; and
       ``(ii) that constitutes less than 5 percent of the 
     undivided interest in a parcel of trust or restricted land;
     shall be held by such heirs with the right of survivorship.
       ``(3) Effective date.--
       ``(A) In general.--This subsection (other than subparagraph 
     (B)) shall become effective on the later of--
       ``(i) the date referred to in subsection (g)(5); or
       ``(ii) the date that is six months after the date on which 
     the Secretary makes the certification required under 
     subparagraph (B).
       ``(B) Certification.--Upon a determination by the Secretary 
     that the Department of the Interior has the capacity, 
     including policies and procedures, to track and manage 
     interests in trust or restricted land held with the right of 
     survivorship, the Secretary shall certify such determination 
     and publish such certification in the Federal Register.
       ``(d) Descent of Off-Reservation Lands.--
       ``(1) Indian reservation defined.--For purposes of this 
     subsection, the term `Indian reservation' includes lands 
     located within--
       ``(A)(i) Oklahoma; and
       ``(ii) the boundaries of an Indian tribe's former 
     reservation (as defined and determined by the Secretary);
       ``(B) the boundaries of any Indian tribe's current or 
     former reservation; or
       ``(C) any area where the Secretary is required to provide 
     special assistance or consideration of a tribe's acquisition 
     of land or interests in land.
       ``(2) Descent.--Except in the State of California, upon the 
     death of an individual holding an interest in trust or 
     restricted lands that are located outside the boundaries of 
     an Indian reservation and that are not subject to the 
     jurisdiction of any Indian tribe, that interest shall descend 
     either--
       ``(A) by testate or intestate succession in trust to an 
     Indian; or
       ``(B) in fee status to any other devises or heirs.
       ``(e) Approval of Agreements.--The official authorized to 
     adjudicate the probate of trust or restricted lands shall 
     have the authority to approve agreements between a decedent's 
     heirs and devisees to consolidate interests in trust or 
     restricted lands. The agreements referred to in the preceding 
     sentence may include trust or restricted lands that are not a 
     part of the decedent's estate that is the subject of the 
     probate. The Secretary may promulgate regulations for the 
     implementation of this subsection.
       ``(f) Estate Planning Assistance.--
       ``(1) In general.--The Secretary shall provide estate 
     planning assistance in accordance with this subsection, to 
     the extent amounts are appropriated for such purpose.
       ``(2) Requirements.--The estate planning assistance 
     provided under paragraph (1) shall be designed to--
       ``(A) inform, advise, and assist Indian landowners with 
     respect to estate planning in order to facilitate the 
     transfer of trust or restricted lands to a devisee or 
     devisees selected by the landowners; and
       ``(B) assist Indian landowners in accessing information 
     pursuant to section 217(e).
       ``(3) Contracts.--In carrying out this section, the 
     Secretary may enter into contracts with entities that have 
     expertise in Indian estate planning and tribal probate codes.
       ``(g) Notification to Indian Tribes and Owners of Trust or 
     Restricted Lands.--
       ``(1) In general.--Not later than 180 days after the date 
     of enactment of the Indian Land Consolidation Act Amendments 
     of 2000, the Secretary shall notify Indian tribes and owners 
     of trust or restricted lands of the amendments made by the 
     Indian Land Consolidation Act Amendments of 2000.
       ``(2) Specifications.--The notice required under paragraph 
     (1) shall be designed to inform Indian owners of trust or 
     restricted land of--
       ``(A) the effect of this Act, with emphasis on the effect 
     of the provisions of this section, on the testate disposition 
     and intestate descent of their interests in trust or 
     restricted land; and
       ``(B) estate planning options available to the owners, 
     including any opportunities for receiving estate planning 
     assistance or advice.
       ``(3) Requirements.--The Secretary shall provide the notice 
     required under paragraph (1)--
       ``(A) by direct mail for those Indians with interests in 
     trust and restricted lands for

[[Page S7712]]

     which the Secretary has an address for the interest holder;
       ``(B) through the Federal Register;
       ``(C) through local newspapers in areas with significant 
     Indian populations, reservation newspapers, and newspapers 
     that are directed at an Indian audience; and
       ``(D) through any other means determined appropriate by the 
     Secretary.
       ``(4) Certification.--After providing notice under this 
     subsection, the Secretary shall certify that the requirements 
     of this subsection have been met and shall publish notice of 
     such certification in the Federal Register.
       ``(5) Effective date.--The provisions of this section shall 
     not apply to the estate of an individual who dies prior to 
     the day that is 365 days after the Secretary makes the 
     certification required under paragraph (4).'';
       (5) in section 208, by striking ``section 206'' and 
     inserting ``subsections (a) and (b) of section 206''; and
       (6) by adding at the end the following:

     ``SEC. 213. PILOT PROGRAM FOR THE ACQUISITION OF FRACTIONAL 
                   INTERESTS.

       ``(a) Acquisition by Secretary.--
       ``(1) In general.--The Secretary may acquire, at the 
     discretion of the Secretary and with the consent of the 
     owner, and at fair market value, any fractional interest in 
     trust or restricted lands.
       ``(2) Authority of Secretary.--
       ``(A) In general.--The Secretary shall have the authority 
     to acquire interests in trust or restricted lands under this 
     section during the 3-year period beginning on the date of 
     certification that is referred to in section 207(g)(5).
       ``(B) Required report.--Prior to expiration of the 
     authority provided for in subparagraph (A), the Secretary 
     shall submit the report required under section 218 concerning 
     whether the program to acquire fractional interests should be 
     extended or altered to make resources available to Indian 
     tribes and individual Indian landowners.
       ``(3) Interests held in trust.--Subject to section 214, the 
     Secretary shall immediately hold interests acquired under 
     this Act in trust for the recognized tribal government that 
     exercises jurisdiction over the land involved.
       ``(b) Requirements.--In implementing subsection (a), the 
     Secretary--
       ``(1) shall promote the policies provided for in section 
     102 of the Indian Land Consolidation Act Amendments of 2000;
       ``(2) may give priority to the acquisition of fractional 
     interests representing 2 percent or less of a parcel of trust 
     or restricted land, especially those interests that would 
     have escheated to a tribe but for the Supreme Court's 
     decision in Babbitt v. Youpee, (117 S Ct. 727 (1997));
       ``(3) to the extent practicable--
       ``(A) shall consult with the tribal government that 
     exercises jurisdiction over the land involved in determining 
     which tracts to acquire on a reservation;
       ``(B) shall coordinate the acquisition activities with the 
     acquisition program of the tribal government that exercises 
     jurisdiction over the land involved, including a tribal land 
     consolidation plan approved pursuant to section 204; and
       ``(C) may enter into agreements (such agreements will not 
     be subject to the provisions of the Indian Self-Determination 
     and Education Assistance Act of 1974) with the tribal 
     government that exercises jurisdiction over the land involved 
     or a subordinate entity of the tribal government to carry out 
     some or all of the Secretary's land acquisition program; and
       ``(4) shall minimize the administrative costs associated 
     with the land acquisition program.
       ``(c) Sale of Interest to Indian Landowners.--
       ``(1) Conveyance at request.--
       ``(A) In general.--At the request of any Indian who owns at 
     least 5 percent of the undivided interest in a parcel of 
     trust or restricted land, the Secretary shall convey an 
     interest acquired under this section to the Indian landowner 
     upon payment by the Indian landowner of the amount paid for 
     the interest by the Secretary.
       ``(B) Limitation.--With respect to a conveyance under this 
     subsection, the Secretary shall not approve an application to 
     terminate the trust status or remove the restrictions of such 
     an interest.
       ``(2) Multiple owners.--If more than one Indian owner 
     requests an interest under (1), the Secretary shall convey 
     the interest to the Indian owner who owns the largest 
     percentage of the undivided interest in the parcel of trust 
     or restricted land involved.
       ``(3) Limitation.--If an Indian tribe that has jurisdiction 
     over a parcel of trust or restricted land owns 10 percent or 
     more of the undivided interests in a parcel of such land, 
     such interest may only be acquired under paragraph (1) with 
     the consent of such Indian tribe.

     ``SEC. 214. ADMINISTRATION OF ACQUIRED FRACTIONAL INTERESTS, 
                   DISPOSITION OF PROCEEDS.

       ``(a) In General.--Subject to the conditions described in 
     subsection (b)(1), an Indian tribe receiving a fractional 
     interest under section 213 may, as a tenant in common with 
     the other owners of the trust or restricted lands, lease the 
     interest, sell the resources, consent to the granting of 
     rights-of-way, or engage in any other transaction affecting 
     the trust or restricted land authorized by law.
       ``(b) Conditions.--
       ``(1) In general.--The conditions described in this 
     paragraph are as follows:
       ``(A) Until the purchase price paid by the Secretary for an 
     interest referred to in subsection (a) has been recovered, or 
     until the Secretary makes any of the findings under paragraph 
     (2)(A), any lease, resource sale contract, right-of-way, or 
     other document evidencing a transaction affecting the 
     interest shall contain a clause providing that all revenue 
     derived from the interest shall be paid to the Secretary.
       ``(B) Subject to subparagraph (C), the Secretary shall 
     deposit any revenue derived under subparagraph (A) into the 
     Acquisition Fund created under section 216.
       ``(C) The Secretary shall deposit any revenue that is paid 
     under subparagraph (A) that is in excess of the purchase 
     price of the fractional interest involved to the credit of 
     the Indian tribe that receives the fractional interest under 
     section 213 and the tribe shall have access to such funds in 
     the same manner as other funds paid to the Secretary for the 
     use of lands held in trust for the tribe.
       ``(D) Notwithstanding any other provision of law, including 
     section 16 of the Act of June 18, 1934 (commonly referred to 
     as the `Indian Reorganization Act') (48 Stat. 987, chapter 
     576; 25 U.S.C. 476), with respect to any interest acquired by 
     the Secretary under section 213, the Secretary may approve a 
     transaction covered under this section on behalf of a tribe 
     until--
       ``(i) the Secretary makes any of the findings under 
     paragraph (2)(A); or
       ``(ii) an amount equal to the purchase price of that 
     interest has been paid into the Acquisition Fund created 
     under section 216.
       ``(2) Exception.--Paragraph (1)(A) shall not apply to any 
     revenue derived from an interest in a parcel of land acquired 
     by the Secretary under section 213 after--
       ``(A) the Secretary makes a finding that--
       ``(i) the costs of administering the interest will equal or 
     exceed the projected revenues for the parcel involved;
       ``(ii) in the discretion of the Secretary, it will take an 
     unreasonable period of time for the parcel to generate 
     revenue that equals the purchase price paid for the interest; 
     or
       ``(iii) a subsequent decrease in the value of land or 
     commodities associated with the land make it likely that the 
     interest will be unable to generate revenue that equals the 
     purchase price paid for the interest in a reasonable time; or
       ``(B) an amount equal to the purchase price of that 
     interest in land has been paid into the Acquisition Fund 
     created under section 216.
       ``(c) Tribe Not Treated as Party to Lease; No Effect on 
     Tribal Sovereignty, Immunity.--
       ``(1) In general.--Paragraph (2) shall apply with respect 
     to any undivided interest in allotted land held by the 
     Secretary in trust for a tribe if a lease or agreement under 
     subsection (a) is otherwise applicable to such undivided 
     interest by reason of this section even though the Indian 
     tribe did not consent to the lease or agreement.
       ``(2) Application of lease.--The lease or agreement 
     described in paragraph (1) shall apply to the portion of the 
     undivided interest in allotted land described in such 
     paragraph (including entitlement of the Indian tribe to 
     payment under the lease or agreement), and the Indian tribe 
     shall not be treated as being a party to the lease or 
     agreement. Nothing in this section (or in the lease or 
     agreement) shall be construed to affect the sovereignty of 
     the Indian tribe.

     ``SEC. 215. ESTABLISHING FAIR MARKET VALUE.

       ``For purposes of this Act, the Secretary may develop a 
     system for establishing the fair market value of various 
     types of lands and improvements. Such a system may include 
     determinations of fair market value based on appropriate 
     geographic units as determined by the Secretary. Such system 
     may govern the amounts offered for the purchase of interests 
     in trust or restricted lands under section 213.

     ``SEC. 216. ACQUISITION FUND.

       ``(a) In General.--The Secretary shall establish an 
     Acquisition Fund to--
       ``(1) disburse appropriations authorized to accomplish the 
     purposes of section 213; and
       ``(2) collect all revenues received from the lease, permit, 
     or sale of resources from interests in trust or restricted 
     lands transferred to Indian tribes by the Secretary under 
     section 213 or paid by Indian landowners under section 
     213(c).
       ``(b) Deposits; Use.--
       ``(1) In general.--Subject to paragraph (2), all proceeds 
     from leases, permits, or resource sales derived from an 
     interest in trust or restricted lands described in subsection 
     (a)(2) shall--
       ``(A) be deposited in the Acquisition Fund; and
       ``(B) as specified in advance in appropriations Acts, be 
     available for the purpose of acquiring additional fractional 
     interests in trust or restricted lands.
       ``(2) Maximum deposits of proceeds.--With respect to the 
     deposit of proceeds derived from an interest under paragraph 
     (1), the aggregate amount deposited under that paragraph 
     shall not exceed the purchase price of that interest under 
     section 213.

     ``SEC. 217. TRUST AND RESTRICTED LAND TRANSACTIONS.

       ``(a) Policy.--It is the policy of the United States to 
     encourage and assist the consolidation of land ownership 
     through transactions--
       ``(1) involving individual Indians;

[[Page S7713]]

       ``(2) between Indians and the tribal government that 
     exercises jurisdiction over the land; or
       ``(3) between individuals who own an interest in trust and 
     restricted land who wish to convey that interest to an Indian 
     or the tribal government that exercises jurisdiction over the 
     parcel of land involved;
     in a manner consistent with the policy of maintaining the 
     trust status of allotted lands. Nothing in this section shall 
     be construed to apply to or to authorize the sale of trust or 
     restricted lands to a person who is not an Indian.
       ``(b) Sales, Exchanges and Gift Deeds Between Indians and 
     Between Indians and Indian Tribes.--
       ``(1) In general.--
       ``(A) Estimate of value.--Notwithstanding any other 
     provision of law and only after the Indian selling, 
     exchanging, or conveying by gift deed for no or nominal 
     consideration an interest in land, has been provided with an 
     estimate of the value of the interest of the Indian pursuant 
     to this section--
       ``(i) the sale or exchange or conveyance of an interest in 
     trust or restricted land may be made for an amount that is 
     less than the fair market value of that interest; and
       ``(ii) the approval of a transaction that is in compliance 
     with this section shall not constitute a breach of trust by 
     the Secretary.
       ``(B) Waiver of requirement.--The requirement for an 
     estimate of value under subparagraph (A) may be waived in 
     writing by an Indian selling, exchanging, or conveying by 
     gift deed for no or nominal consideration an interest in land 
     with an Indian person who is the owner's spouse, brother, 
     sister, lineal ancestor of Indian blood, lineal descendant, 
     or collateral heir.
       ``(2) Limitation.--For a period of 5 years after the 
     Secretary approves a conveyance pursuant to this subsection, 
     the Secretary shall not approve an application to terminate 
     the trust status or remove the restrictions of such an 
     interest.
       ``(c) Acquisition of Interest by Secretary.--An Indian, or 
     the recognized tribal government of a reservation, in 
     possession of an interest in trust or restricted lands, at 
     least a portion of which is in trust or restricted status on 
     the date of enactment of the Indian Land Consolidation Act 
     Amendments of 2000 and located within a reservation, may 
     request that the interest be taken into trust by the 
     Secretary. Upon such a request, the Secretary shall forthwith 
     take such interest into trust.
       ``(d) Status of Lands.--The sale, exchange, or conveyance 
     by gift deed for no or nominal consideration of an interest 
     in trust or restricted land under this section shall not 
     affect the status of that land as trust or restricted land.
       ``(e) Land Ownership Information.--Notwithstanding any 
     other provision of law, the names and mailing addresses of 
     the Indian owners of trust or restricted lands, and 
     information on the location of the parcel and the percentage 
     of undivided interest owned by each individual, or of any 
     interest in trust or restricted lands, shall, upon written 
     request, be made available to--
       ``(1) other Indian owners of interests in trust or 
     restricted lands within the same reservation;
       ``(2) the tribe that exercises jurisdiction over the land 
     where the parcel is located or any person who is eligible for 
     membership in that tribe; and
       ``(3) prospective applicants for the leasing, use, or 
     consolidation of such trust or restricted land or the 
     interest in trust or restricted lands.
       ``(f) Notice to Indian Tribe.--After the expiration of the 
     limitation period provided for in subsection (b)(2) and prior 
     to considering an Indian application to terminate the trust 
     status or to remove the restrictions on alienation from trust 
     or restricted land sold, exchanged or otherwise conveyed 
     under this section, the Indian tribe that exercises 
     jurisdiction over the parcel of such land shall be notified 
     of the application and given the opportunity to match the 
     purchase price that has been offered for the trust or 
     restricted land involved.

     ``SEC. 218. REPORTS TO CONGRESS.

       ``(a) In General.--Prior to expiration of the authority 
     provided for in section 213(a)(2)(A), the Secretary, after 
     consultation with Indian tribes and other interested parties, 
     shall submit to the Committee on Indian Affairs and the 
     Committee on Energy and Natural Resources of the Senate and 
     the Committee on Resources of the House of Representatives a 
     report that indicates, for the period covered by the report--
       ``(1) the number of fractional interests in trust or 
     restricted lands acquired; and
       ``(2) the impact of the resulting reduction in the number 
     of such fractional interests on the financial and realty 
     recordkeeping systems of the Bureau of Indian Affairs.
       ``(b) Report.--The reports described in subsection (a) and 
     section 213(a) shall contain findings as to whether the 
     program under this Act to acquire fractional interests in 
     trust or restricted lands should be extended and whether such 
     program should be altered to make resources available to 
     Indian tribes and individual Indian landowners.

     ``SEC. 219. APPROVAL OF LEASES, RIGHTS-OF-WAY, AND SALES OF 
                   NATURAL RESOURCES.

       ``(a) Approval by the Secretary.--
       ``(1) In general.--Notwithstanding any other provision of 
     law, the Secretary may approve any lease or agreement that 
     affects individually owned allotted land or any other land 
     held in trust or restricted status by the Secretary on behalf 
     of an Indian, if--
       ``(A) the owners of not less than the applicable percentage 
     (determined under subsection (b)) of the undivided interest 
     in the allotted land that is covered by the lease or 
     agreement consent in writing to the lease or agreement; and
       ``(B) the Secretary determines that approving the lease or 
     agreement is in the best interest of the owners of the 
     undivided interest in the allotted land.
       ``(2) Rule of construction.--Nothing in this section shall 
     be construed to apply to leases involving coal or uranium.
       ``(3) Definition.--In this section, the term `allotted 
     land' includes any land held in trust or restricted status by 
     the Secretary on behalf of one or more Indians.
       ``(b) Applicable Percentage.--
       ``(1) Percentage interest.--The applicable percentage 
     referred to in subsection (a)(1) shall be determined as 
     follows:
       ``(A) If there are 5 or fewer owners of the undivided 
     interest in the allotted land, the applicable percentage 
     shall be 100 percent.
       ``(B) If there are more than 5 such owners, but fewer than 
     11 such owners, the applicable percentage shall be 80 
     percent.
       ``(C) If there are more than 10 such owners, but fewer than 
     20 such owners, the applicable percentage shall be 60 
     percent.
       ``(D) If there are 20 or more such owners, the applicable 
     percentage shall be a majority of the interests in the 
     allotted land.
       ``(2) Determination of owners.--
       ``(A) In general.--For purposes of this subsection, in 
     determining the number of owners of, and their interests in, 
     the undivided interest in the allotted land with respect to a 
     lease or agreement, the Secretary shall make such 
     determination based on the records of the Department of the 
     Interior that identify the owners of such lands and their 
     interests and the number of owners of such land on the date 
     on which the lease or agreement involved is submitted to the 
     Secretary under this section.
       ``(B) Rule of construction.--Nothing in subparagraph (A) 
     shall be construed to authorize the Secretary to treat an 
     Indian tribe as the owner of an interest in allotted land 
     that did not escheat to the tribe pursuant to section 207 as 
     a result of the Supreme Court's decision in Babbitt v. 
     Youpee, (117 S Ct. 727 (1997)).
       ``(c) Authority of Secretary to Sign Lease or Agreement on 
     Behalf of Certain Owners.--The Secretary may give written 
     consent to a lease or agreement under subsection (a)--
       ``(1) on behalf of the individual Indian owner if the owner 
     is deceased and the heirs to, or devisees of, the interest of 
     the deceased owner have not been determined; or
       ``(2) on behalf of any heir or devisee referred to in 
     paragraph (1) if the heir or devisee has been determined but 
     cannot be located
       ``(d) Effect of Approval.--
       ``(1) Application to all parties.--
       ``(A) In general.--Subject to paragraph (2), a lease or 
     agreement approved by the Secretary under subsection (a) 
     shall be binding on the parties described in subparagraph 
     (B), to the same extent as if all of the owners of the 
     undivided interest in allotted land covered under the lease 
     or agreement consented to the lease or agreement.
       ``(B) Description of parties.--The parties referred to in 
     subparagraph (A) are--
       ``(i) the owners of the undivided interest in the allotted 
     land covered under the lease or agreement referred to in such 
     subparagraph; and
       ``(ii) all other parties to the lease or agreement.
       ``(2) Tribe not treated as party to lease; no effect on 
     tribal sovereignty, immunity.--
       ``(A) In general.--Subparagraph (B) shall apply with 
     respect to any undivided interest in allotted land held by 
     the Secretary in trust for a tribe if a lease or agreement 
     under subsection (a) is otherwise applicable to such 
     undivided interest by reason of this section even though the 
     Indian tribe did not consent to the lease or agreement.
       ``(B) Application of lease.--The lease or agreement 
     described in subparagraph (A) shall apply to the portion of 
     the undivided interest in allotted land described in such 
     paragraph (including entitlement of the Indian tribe to 
     payment under the lease or agreement), and the Indian tribe 
     shall not be treated as being a party to the lease or 
     agreement. Nothing in this section (or in the lease or 
     agreement) shall be construed to affect the sovereignty of 
     the Indian tribe.
       ``(e) Distribution of Proceeds.--
       ``(1) In general.--The proceeds derived from a lease or 
     agreement that is approved by the Secretary under subsection 
     (a) shall be distributed to all owners of undivided interest 
     in the allotted land covered under the lease or agreement.
       ``(2) Determination of amounts distributed.--The amount of 
     the proceeds under paragraph (1) that are distributed to each 
     owner under that paragraph shall be determined in accordance 
     with the portion of the undivided interest in the allotted 
     land covered under the lease or agreement that is owned by 
     that owner.
       ``(f) Rule of Construction.--Nothing in this section shall 
     be construed to amend or modify the provisions of Public Law 
     105-188 (25 U.S.C. 396 note), the American Indian 
     Agricultural Resources Management Act (25 U.S.C. 3701 et 
     seq.), title II of the Indian Land Consolidation Act 
     Amendments of 2000,

[[Page S7714]]

     or any other Act that provides specific standards for the 
     percentage of ownership interest that must approve a lease or 
     agreement on a specified reservation.

     ``SEC. 220. APPLICATION TO ALASKA.

       ``(a) Findings.--Congress find that--
       ``(1) numerous academic and governmental organizations have 
     studied the nature and extent of fractionated ownership of 
     Indian land outside of Alaska and have proposed solutions to 
     this problem; and
       ``(2) despite these studies, there has not been a 
     comparable effort to analyze the problem, if any, of 
     fractionated ownership in Alaska.
       ``(b) Application of Act to Alaska.--Except as provided in 
     this section, this Act shall not apply to land located within 
     Alaska.
       ``(c) Rule of Construction.--Nothing in this section shall 
     be construed to constitute a ratification of any 
     determination by any agency, instrumentality, or court of the 
     United States that may support the assertion of tribal 
     jurisdiction over allotment lands or interests in such land 
     in Alaska.''.

     SEC. 104. JUDICIAL REVIEW.

       Notwithstanding section 207(g)(5) of the Indian Land 
     Consolidation Act (25 U.S.C. 2206(f)(5)), after the Secretary 
     of Interior provides the certification required under section 
     207(g)(4) of such Act, the owner of an interest in trust or 
     restricted land may bring an administrative action to 
     challenge the application of such section 207 to the devise 
     or descent of his or her interest or interests in trust or 
     restricted lands, and may seek judicial review of the final 
     decision of the Secretary of Interior with respect to such 
     challenge.

     SEC. 105. AUTHORIZATION OF APPROPRIATIONS.

       There are authorized to be appropriated not to exceed 
     $8,000,000 for fiscal year 2001 and each subsequent fiscal 
     year to carry out the provisions of this title (and the 
     amendments made by this title) that are not otherwise funded 
     under the authority provided for in any other provision of 
     Federal law.

     SEC. 106. CONFORMING AMENDMENTS.

       (a) Patents Held in Trust.--The Act of February 8, 1887 (24 
     Stat. 388) is amended--
       (1) by repealing sections 1, 2, and 3 (25 U.S.C. 331, 332, 
     and 333); and
       (2) in the second proviso of section 5 (25 U.S.C. 348)--
       (A) by striking ``and partition''; and
       (B) by striking ``except'' and inserting ``except as 
     provided by the Indian Land Consolidation Act or a tribal 
     probate code approved under such Act and except''.
       (b) Ascertainment of Heirs and Disposal of Allotments.--The 
     Act of June 25, 1910 (36 Stat. 855) is amended--
       (1) in the first sentence of section 1 (25 U.S.C. 372), by 
     striking ``under'' and inserting ``under the Indian Land 
     Consolidation Act or a tribal probate code approved under 
     such Act and pursuant to''; and
       (2) in the first sentence of section 2 (25 U.S.C. 373), by 
     striking ``with regulations'' and inserting ``with the Indian 
     Land Consolidation Act or a tribal probate code approved 
     under such Act and regulations''.
       (c) Transfer of Lands.--Section 4 of the Act of June 18, 
     1934 (25 U.S.C. 464) is amended by striking ``member or:'' 
     and inserting ``member or, except as provided by the Indian 
     Land Consolidation Act,''.

            TITLE II--LEASES OF NAVAJO INDIAN ALLOTTED LANDS

     SEC. 201. LEASES OF NAVAJO INDIAN ALLOTTED LANDS.

       (a) Definitions.--In this section:
       (1) Indian tribe.--The term ``Indian tribe'' has the 
     meaning given the term in section 4(e) of the Indian Self-
     Determination and Education Assistance Act (25 U.S.C. 
     450b(e)).
       (2) Individually owned navajo indian allotted land.--The 
     term ``individually owned Navajo Indian allotted land'' means 
     Navajo Indian allotted land that is owned in whole or in part 
     by 1 or more individuals.
       (3) Navajo indian.--The term ``Navajo Indian'' means a 
     member of the Navajo Nation.
       (4) Navajo indian allotted land.--The term ``Navajo Indian 
     allotted land'' means a single parcel of land that--
       (A) is located within the jurisdiction of the Navajo 
     Nation; and
       (B)(i) is held in trust or restricted status by the United 
     States for the benefit of Navajo Indians or members of 
     another Indian tribe; and
       (ii) was--
       (I) allotted to a Navajo Indian; or
       (II) taken into trust or restricted status by the United 
     States for a Navajo Indian.
       (5) Owner.--The term ``owner'' means, in the case of any 
     interest in land described in paragraph (4)(B)(i), the 
     beneficial owner of the interest.
       (6) Secretary.--The term ``Secretary'' means the Secretary 
     of the Interior.
       (b) Approval by the Secretary.--
       (1) In general.--The Secretary may approve an oil or gas 
     lease or agreement that affects individually owned Navajo 
     Indian allotted land, if--
       (A) the owners of not less than the applicable percentage 
     (determined under paragraph (2)) of the undivided interest in 
     the Navajo Indian allotted land that is covered by the oil or 
     gas lease or agreement consent in writing to the lease or 
     agreement; and
       (B) the Secretary determines that approving the lease or 
     agreement is in the best interest of the owners of the 
     undivided interest in the Navajo Indian allotted land.
       (2) Percentage interest.--The applicable percentage 
     referred to in paragraph (1)(A) shall be determined as 
     follows:
       (A) If there are 10 or fewer owners of the undivided 
     interest in the Navajo Indian allotted land, the applicable 
     percentage shall be 100 percent.
       (B) If there are more than 10 such owners, but fewer than 
     51 such owners, the applicable percentage shall be 80 
     percent.
       (C) If there are 51 or more such owners, the applicable 
     percentage shall be 60 percent.
       (3) Authority of secretary to sign lease or agreement on 
     behalf of certain owners.--The Secretary may give written 
     consent to an oil or gas lease or agreement under paragraph 
     (1) on behalf of an individual Indian owner if--
       (A) the owner is deceased and the heirs to, or devisees of, 
     the interest of the deceased owner have not been determined; 
     or
       (B) the heirs or devisees referred to in subparagraph (A) 
     have been determined, but 1 or more of the heirs or devisees 
     cannot be located.
       (4) Effect of approval.--
       (A) Application to all parties.--
       (i) In general.--Subject to subparagraph (B), an oil or gas 
     lease or agreement approved by the Secretary under paragraph 
     (1) shall be binding on the parties described in clause (ii), 
     to the same extent as if all of the owners of the undivided 
     interest in Navajo Indian allotted land covered under the 
     lease or agreement consented to the lease or agreement.
       (ii) Description of parties.--The parties referred to in 
     clause (i) are--

       (I) the owners of the undivided interest in the Navajo 
     Indian allotted land covered under the lease or agreement 
     referred to in clause (i); and
       (II) all other parties to the lease or agreement.

       (B) Effect on indian tribe.--If--
       (i) an Indian tribe is the owner of a portion of an 
     undivided interest in Navajo Indian allotted land; and
       (ii) an oil or gas lease or agreement under paragraph (1) 
     is otherwise applicable to such portion by reason of this 
     subsection even though the Indian tribe did not consent to 
     the lease or agreement,
     then the lease or agreement shall apply to such portion of 
     the undivided interest (including entitlement of the Indian 
     tribe to payment under the lease or agreement), but the 
     Indian tribe shall not be treated as a party to the lease or 
     agreement and nothing in this subsection (or in the lease or 
     agreement) shall be construed to affect the sovereignty of 
     the Indian tribe.
       (5) Distribution of proceeds.--
       (A) In general.--The proceeds derived from an oil or gas 
     lease or agreement that is approved by the Secretary under 
     paragraph (1) shall be distributed to all owners of the 
     undivided interest in the Navajo Indian allotted land covered 
     under the lease or agreement.
       (B) Determination of amounts distributed.--The amount of 
     the proceeds under subparagraph (A) distributed to each owner 
     under that subparagraph shall be determined in accordance 
     with the portion of the undivided interest in the Navajo 
     Indian allotted land covered under the lease or agreement 
     that is owned by that owner.

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