[Congressional Record Volume 149, Number 7 (Wednesday, January 15, 2003)]
[Senate]
[Pages S860-S866]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mr. BIDEN:
  S. 174. A bill to put a college education within reach, and for other 
purposes; to the Committee on Finance.
  Mr. BIDEN. Mr. President, as another semester begins, many college 
students are worrying not only about their course loads and class work, 
but about how they will pay for school. Today, the average cost of 
room, board and tuition at a public four-year college has jumped to 
over $9,000. Tuition and fees alone jumped 9.6 percent from last year. 
The average cost of room, board and tuition at a private four-year 
college has jumped to just over $25,000 with tuition and fees having 
risen 5.8 percent.
  What do the rising costs of attending a college or university mean 
for American families? It means that despite their best efforts to save 
and plan ahead, hard working families have to spend a larger percentage 
of their income than ever before to send their children to school. To 
attend my alma mater, the University of Delaware, it costs nearly 20 
percent of a Delaware family's average annual income to cover costs. In 
fact just a few months ago, tuition was increased from the Fall to 
Spring semester by $120 to make up for an expected $3.1 cut in state 
aid to the university. If a Delaware family wants to send their child 
to a private university, approximately 50 percent of their income is 
required.
  To help counteract these spiraling costs, I come to the floor today 
to reintroduce ``The Tuition Assistance for Families Act,'' a 
comprehensive package of tax credits and deductions, grants and 
scholarships that will assist American families in sending their 
children to college. Building upon the previous efforts of mine and 
others, this legislation will provide more families with much needed 
assistance so that the decision to send one's child to school will not 
be overshadowed by the decision of how to pay for it.
  Specifically, the ``Tuition Assistance for Families Act'' will raise 
the current tuition tax deduction for higher education expenses from 
$3,000 to $12,000. Based on legislation that I previously sponsored 
with Senator Schumer, this $9,000 increase will go a long way in 
helping middle class American families afford tuition.
  The ``Tuition Assistance for Families Act'' expands tuition tax 
credits already in law, the Hope Scholarship and the Lifetime Learning 
Tax Credit. Currently, the Lifetime Learning Credit allows a 20 percent 
tax credit on the first $10,000 of one's higher education expenses. 
Under my bill, this percentage jumps to 25 percent while the amount of 
expenses subjected to the credit rises to $12,000. This means that a 
student who files a return in tax year 2003 under my plan could get up 
to $3,000 back in taxes. This is $1,000 more than the $2,000 maximum 
allowable credit available under current law. That means that under my 
plan, up to an additional $1,000 can go directly back into a student's 
pocket to pay for books, a computer or tuition. To maximize the utility 
of the tax credits, my bill also raises the income limits for both the 
Hope Scholarship and the Lifetime Learning Credit to up to $130,000 per 
family, per year. This will allow more families to access the help that 
they need.
  My bill reintroduces the idea of a $1,000 merit scholarship to be 
awarded to each high school senior graduating in the top 5 percent of 
his or her class. These types of scholarships not only reward student 
achievement, they help to ensure that the best and brightest students 
have the ability to go on to college thereby increasing the pool of 
well-qualified Americans in the workforce.
  Finally, the ``Tuition Assistance for Families Act'' will increase 
the maximum Pell Grant award from $4,000 to $4,500. During the 2001-
2002 school year, the maximum Pell Grant award covered approximately 42 
percent of the average tuition, room and board at a public four-year 
university. During the 1975-76 it covered 84 percent of these same 
costs. Clearly, the purchasing power of these grants has declined 
dramatically over the years. As such, the debt load of American 
students and American families has increased as students have looked to 
federal and private loans to finance their education. Shockingly but 
not surprisingly, 64

[[Page S861]]

percent of today's college students graduate with student loan debt at 
an average of $16,928, double the debt load of 1994.
  It is the dream of every American parent to provide for their child a 
better life than they had themselves. Part of doing this involves 
sending your kids to college. This is why I have spent a great deal of 
my time in the Senate fighting to provide tax relief for middle class 
American families struggling with college costs. And while I was 
pleased when some of the ideas I advocated were adopted in the 1997 tax 
cut bill, it is clear that as tuition costs rise dramatically, 
Americans need additional assistance. The ``Tuition Assistance for 
Families Act'' will provide extra help so that more families can afford 
to give their children a brighter and better future. The ``Tuition 
Assistance for Families Act'' goes one step further in committing the 
federal government to making college more affordable for Americans.
  I ask unanimous consent that the text of the bill be printed in the 
Record.
  There being no objection, the bill was ordered to be printed in the 
Record, as follows

                                 S. 174

       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 ``Tuition Assistance for 
     Families Act''.

     SEC. 2. EXPANSION OF TUITION TAX DEDUCTION.

       (a) In General.--Subparagraphs (A) and (B) of section 
     222(b)(2) of the Internal Revenue Code of 1986 (relating to 
     dollar limitation) are amended to read as follows:
       ``(A) In general.--The applicable dollar limit shall be 
     equal to--
       ``(i) in the case of a taxpayer whose adjusted gross income 
     for the taxable year does not exceed $65,000 ($130,000 in the 
     case of a joint return), $12,000,
       ``(ii) with respect to any taxable year beginning in 2004 
     or 2005, in the case of a taxpayer not described in clause 
     (i) whose adjusted gross income for the taxable year does not 
     exceed $80,000 ($160,000 in the case of a joint return), 
     $2,000, and
       ``(iii) in the case of any other taxpayer, zero.
       ``(B) Inflation adjustment.--
       ``(i) In general.--In the case of any taxable year 
     beginning after 2003, each dollar amount referred to in 
     subparagraph (A)(i) shall be increased by an amount equal 
     to--

       ``(I) such dollar amount, multiplied by
       ``(II) the cost-of-living adjustment determined under 
     section (1)(f)(3) for the calendar year in which the taxable 
     year begins, by substituting `2002' for `1992'.

       ``(ii) Rounding.--If any amount as adjusted under clause 
     (i) is not a multiple of $100, such amount shall be rounded 
     to the next lowest multiple of $100.''.
       (b) Permanent Deduction.--Section 222 of the Internal 
     Revenue Code of 1986 (relating to qualified tuition and 
     related expenses) is amended by striking subsection (e).
       (c) Effective Date.--The amendments made by this section 
     shall apply to payments made in taxable years beginning after 
     December 31, 2002.

     SEC. 3. EXPANSION OF LIFETIME LEARNING CREDIT.

       (a) In General.--Section 25A(c)(1) of the Internal Revenue 
     Code of 1986 (relating to per taxpayer credit) is amended--
       (1) by striking ``20 percent'' and inserting ``25 
     percent'', and
       (2) by striking ``$10,000 ($5,000 in the case of taxable 
     years beginning before January 1, 2003)'' and inserting 
     ``$12,000''.
       (b) Inflation Adjustment.--Section 25A(h) of the Internal 
     Revenue Code of 1986 (relating to inflation adjustments) is 
     amended by adding at the end the following new paragraph:
       ``(3) Dollar limitation on amount of lifetime learning 
     credit.--
       ``(A) In general.--In the case of any taxable year 
     beginning after 2003, the dollar amount referred to in 
     subsection (c)(1) shall be increased by an amount equal to--
       ``(i) such dollar amount, multiplied by
       ``(ii) the cost-of-living adjustment determined under 
     section (1)(f)(3) for the calendar year in which the taxable 
     year begins, by substituting `2002' for `1992'.
       ``(B) Rounding.--If any amount as adjusted under 
     subparagraph (A) is not a multiple of $100, such amount shall 
     be rounded to the next lowest multiple of $100.''.
       (c) Effective Date.--The amendments made by this section 
     shall apply to payments made in taxable years beginning after 
     December 31, 2002.

     SEC. 4. INCREASE IN INCOME LIMITS FOR HOPE AND LIFETIME 
                   LEARNING CREDITS.

       (a) In General.--Section 25A(d)(2)(A)(ii) of the Internal 
     Revenue Code of 1986 (relating to limitation based on 
     modified adjusted gross income) is amended by striking 
     ``$40,000 ($80,000'' and inserting ``$55,000 ($110,000''.
       (b) Conforming Amendments.--Section 25A(h)(2)(A) of the 
     Internal Revenue Code of 1986 is amended--
       (1) by striking ``2001'' in the matter preceding clause (i) 
     and inserting ``2003'',
       (2) by striking ``the $40,000 and $80,000 amounts'' in such 
     matter and inserting ``the $55,000 and $110,000 amounts'', 
     and
       (3) by striking ``2000'' in clause (ii) and inserting 
     ``2002''..
       (c) Effective Date.--The amendments made by this section 
     shall apply to payments made in taxable years beginning after 
     December 31, 2002.

     SEC. 5. MAXIMUM PELL GRANT AWARDS.

       The Department of Education Appropriations Act, 2002 
     (Public Law 107-116) is amended under the heading ``Student 
     Financial Assistance'' by striking ``$4,000'' and inserting 
     ``$4,500''.

     SEC. 6. ACADEMIC ACHIEVEMENT SCHOLARSHIPS.

       (a) Scholarships.--The Secretary of Education is authorized 
     to award a scholarship for academic year 2003-2004 and 
     succeeding academic years to each student in a State who 
     graduated in the top 5 percent of such student's graduating 
     class from an accredited secondary school in academic year 
     2002-2003 or a succeeding academic year to enable such 
     student to pay the cost of attendance at an institution of 
     higher education.
       (b) Amount.--Each scholarship awarded under this section 
     shall be in the amount of $1,000.
       (c) Use.--Each student awarded a scholarship under this 
     section shall use the funds to pay the cost of attendance at 
     an institution of higher education.
       (d) Construction of Needs Provision.--
       (1) In general.--Except as provided in paragraph (2), 
     nothing in this section, or any other Act, shall be construed 
     to permit the receipt of a scholarship under this section to 
     be counted for any needs test in connection with the awarding 
     of any grant or the making of any loan under the Higher 
     Education Act of 1965 (20 U.S.C. 1001 et seq.) or any other 
     provision of Federal law relating to educational assistance.
       (2) Exception.--In determining the need of a student for 
     Federal financial assistance, an institution of higher 
     education may take into consideration the amount of 
     scholarship assistance received under this section if the 
     total amount of scholarship assistance received under this 
     section plus the amount of other financial assistance 
     available to a student exceeds the student's cost of 
     attendance at the institution.
       (e) Regulations.--The Secretary of Education shall 
     promulgate regulations regarding how scholarships awarded 
     under this section will be allocated to both public and 
     private school students.
       (f) Definitions.--In this section:
       (1) Cost of attendance.--The term `cost of attendance' has 
     the meaning given the term in section 472 of the Higher 
     Education Act of 1965 (20 U.S.C. 1087ll).
       (2) Institution of higher education.--The term `institution 
     of higher education' has the meaning given the term in 
     section 101 of the Higher Education Act of 1965 (20 U.S.C. 
     1001).
      By Mr. McCAIN (for himself, Mr. Daschle, and Mr. Johnson):
  S. 175. A bill to establish a direct line of authority for the Office 
of Trust Reform Implementation and Oversight to oversee the management 
and reform of Indian trust funds and assets under the jurisdiction of 
the Department of the Interior, and to advance tribal management of 
such funds and assets, pursuant to the Indian Self-Determination Act 
and for other purposes; to the Committee on Indian Affairs.
  Mr. McCAIN. Mr. President, today I am proposing bipartisan 
legislation to provide the basis for reform of the administration and 
management of the assets and funds held by the United States in trust 
for federally recognized Indian tribes and individual Indians. I am 
pleased that my two colleagues from South Dakota, Senators Daschle and 
Johnson, are once again joining me in this effort.
  Last year, we introduced a similar bill to serve as a legislative 
vehicle in the event a consensus agreement could be reached during an 
extensive dialogue between a designated tribal task force and the U.S. 
Department of Interior on administrative and legislative reforms to 
federal management of trust funds and assets. Unfortunately, the 
dialogue resulted in a stalemate. While we received many favorable 
comments to move forward with this legislation, and conducted a full 
committee hearing to consider it, a sufficient consensus did not exist 
to approve the legislation prior to the adjournment of the 107th 
session.
  We are reintroducing this legislation again because we believe it is 
important to continue to offer a legislative remedy to the management 
problems plaguing the Interior Department and instill a meaningful role 
for Indian tribes in the process. Indian trust funds management 
continues to be mired in controversy and systemic mismanagement. Native 
American beneficiaries

[[Page S862]]

continue to be denied a full reconciliation of money rightfully 
belonging to them.
  The history of Indian trust funds management is long, exhaustive and 
fraught with controversy. It is a problem inherited by successive 
Administrations yet only limited progress has been made. The major 
structural changes called for in the 1994 American Indian Trust Fund 
Management Reform Act have not been accomplished. Two Special Trustees 
have resigned in frustration and high-level government officials have 
twice been held in civil contempt by the U.S. District Court in 
Washington, D.C. for breach of fiduciary duties.
  No one is more frustrated about the lack of resolution to these long-
standing problems than the Native American beneficiaries. However, 
recent reorganization plans submitted to the Court by the Interior 
Department earlier this month have only raised more controversy and 
concern among Indian tribes and beneficiaries as to the extent the 
Department will fully account for lost and mismanaged trust accounts. 
Significant questions have also been raised as to the impact of these 
proposed plans on long-standing Federal policies of self-determination 
and the function of the Bureau of Indian Affairs.
  I cannot speak as to the merits of the Department's recent plans. The 
fact is, many in the Congress were not notified of the Department's 
intended actions nor has there been an opportunity to evaluate these 
plans through the respective legislative committees of jurisdiction. I 
have sought a commitment from the incoming Chairman of the Senate 
Committee on Indian Affairs, Senator Ben Nighthorse Campbell, to hold 
hearings as soon as possible on recent Department proposals that will 
restructure trust funds management as well as to consider legislative 
proposals such as the one we're proposing today.
  The purpose of this legislation we are introducing is simple. It 
focuses on two primary changes to the 1994 American Indian Trust Fund 
Management Reform Act, the underlying law governing Indian trust funds 
management. First, it creates a single line-of-authority in the 
Interior Department by establishing a Deputy Secretary for Trust 
Management and Reform; and second, the bill strengthens provisions for 
Indian tribes and beneficiaries to directly manage or co-manage with 
the Interior secretary trust funds and assets, based on successful 
self-determination policies.
  A fundamental objective of this legislation is to raise the profile 
of Indian trust funds management within the Interior Department and 
provide a statutory basis for Indian tribes to assume a greater 
management role in future management of their trust funds and trust 
assets. The structure of this legislation is similar to the bill 
introduced last year, but it is modified to reflect comments received 
from Indian tribes.
  The legislation affirms the fiduciary standards to be applied to the 
management of Indian trust funds and assets. The Office of Special 
Trustee is abolished and replaced with the Office of Trust Reform under 
the direction of a new Deputy Secretary. The existing Advisory 
Committee to the Special Trustee is replaced with a Task Force composed 
of representatives of the tribes and the Department who will work with 
the new Deputy Secretary to develop appropriate standards and further 
necessary changes.
  Senator Daschle, Senator Johnson and I introduce this legislation as 
a demonstration of our continuing commitment to seek a real and 
meaningful trust reform solution that provides an active role for 
tribal participation and consultation. We hope this legislation will 
prompt the necessary dialogue to ensure reform to Indian trust funds 
and trust assets management in a way that increases accountability of 
the Interior Department and respects the fact that the tribes must be 
involved as active participants without the threat of termination of 
the trust responsibility.
  I ask unanimous consent that the text of the bill be printed in the 
Record.
  There being no objection, the bill was ordered to be printed in the 
Record, as follows:

                                 S. 175

       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 Trust Asset and Trust 
     Fund Management and Reform Act of 2003''.

     SEC. 2. FINDINGS.

       Congress finds and affirms that the proper discharge of 
     trust responsibility of the United States requires, without 
     limitation, that the trustee, using a high degree of care, 
     skill, and loyalty--
       (1) protect and preserve Indian trust assets from loss, 
     damage, unlawful alienation, waste, and depletion;
       (2) ensure that any management of Indian trust assets 
     required to be carried out by the Secretary--
       (A) promotes the interest of the beneficial owner; and
       (B) supports, to the maximum extent practicable in 
     accordance with the trust responsibility of the Secretary, 
     the beneficial owner's intended use of the assets;
       (3)(A) enforce the terms of all leases or other agreements 
     that provide for the use of trust assets; and
       (B) take appropriate steps to remedy trespass on trust or 
     restricted land;
       (4) promote tribal control and self-determination over 
     tribal trust land and resources;
       (5) select and oversee persons that manage Indian trust 
     assets;
       (6) confirm that Indian tribes that manage Indian trust 
     assets pursuant to contracts and compacts authorized by the 
     Indian Self-Determination and Education Assistance Act (25 
     U.S.C. 450 et seq.) protect and prudently manage those Indian 
     trust assets;
       (7) provide oversight and review of the performance of the 
     trust responsibility of the Secretary, including Indian trust 
     asset and investment management programs, operational 
     systems, and information systems;
       (8) account for and identify, collect, deposit, invest, and 
     distribute, in a timely manner, income due or held on behalf 
     of tribal and individual Indian account holders;
       (9) maintain a verifiable system of records that, at a 
     minimum, is capable of identifying, with respect to a trust 
     asset--
       (A) the location of the trust asset;
       (B) the beneficial owners of the trust asset;
       (C) any legal encumbrances (such as leases or permits) 
     applicable to the trust asset;
       (D) the user of the trust asset;
       (E) any rent or other payments made;
       (F) the value of trust or restricted land and resources 
     associated with the trust asset;
       (G) dates of--
       (i) collections;
       (ii) deposits;
       (iii) transfers;
       (iv) disbursements;
       (v) imposition of third-party obligations (such as court-
     ordered child support or judgments);
       (vi) statements of earnings;
       (vii) investment instruments; and
       (viii) closure of all trust fund accounts relating to the 
     trust fund asset;
       (H) documents pertaining to actions taken to prevent or 
     compensate for any diminishment of the Indian trust asset; 
     and
       (I) documents that evidence the actions of the Secretary 
     regarding the management and disposition of the Indian trust 
     asset;
       (10) establish and maintain a system of records that--
       (A) permits beneficial owners to obtain information 
     regarding Indian trust assets in a timely manner; and
       (B) protects the privacy of that information;
       (11) invest tribal and individual Indian trust funds to 
     ensure that the trust account remains reasonably productive 
     for the beneficial owner consistent with market conditions 
     existing at the time at which investment is made;
       (12) communicate with beneficial owners regarding the 
     management and administration of Indian trust assets; and
       (13) protect treaty-based fishing, hunting, gathering, and 
     similar rights-of-access and resource use on traditional 
     tribal land.

     SEC. 3. DEFINITIONS.

       Section 2 of the American Indian Trust Fund Management 
     Reform Act of 1994 (25 U.S.C. 4001) is amended--
       (1) by striking paragraph (1);
       (2) in paragraph (2), by striking ``(2) The term'' and 
     inserting the following:
       ``(5) Indian tribe.--The term'';
       (3) in paragraph (3), by striking ``(3) The term'' and 
     inserting the following:
       ``(8) Secretary.--The term'';
       (4) in paragraph (4), by striking ``(4) The term'' and 
     inserting the following:
       ``(6) Office.--The term'';
       (5) in paragraph (5), by striking ``(5) The term'' and 
     inserting the following:
       ``(2) Bureau.--The term'';
       (6) in paragraph (6), by striking ``(6) The term'' and 
     inserting the following:
       ``(3) Department.--The term'';
       (7) by moving paragraphs (2), (3), (5), (6), and (8) (as 
     redesignated by this subsection) so as to appear in numerical 
     order;
       (8) by inserting before paragraph (2) (as redesignated by 
     paragraph (5)) the following:
       ``(1) Beneficial owner.--The term `beneficial owner' means 
     an Indian tribe or member of an Indian tribe that is the 
     beneficial owner of Indian trust assets.'';
       (9) by inserting after paragraph (3) (as redesignated by 
     paragraph (6)) the following:
       ``(4) Deputy secretary.--The term `Deputy Secretary' means 
     the Deputy Secretary

[[Page S863]]

     for Trust Management and Reform appointed under section 
     307(a)(2).'';
       (10) by inserting after paragraph (6) (as redesignated by 
     paragraph (4)) the following:
       ``(7) Reform office.--The term `Reform Office' means the 
     Office of Trust Reform Implementation and Oversight 
     established by section 307(e).''; and
       (11) by adding at the end the following:
       ``(9) Task force.--The term `Task Force' means the Tribal 
     Task Force for Trust Reform established under section 307(a).
       ``(10) Trust assets.--The term `trust assets' means all 
     tangible property including land, minerals, coal, oil and 
     gas, forest resources, agricultural resources, water and 
     water sources, and fish and wildlife held by the Secretary 
     for the benefit of an Indian tribe or an individual member of 
     an Indian tribe pursuant to Federal law.
       ``(11) Trust funds.--The term `trust funds' means all funds 
     held by the Secretary for the benefit of an Indian tribe or 
     and individual member of an Indian tribe pursuant to Federal 
     law.
       ``(12) Trustee.--The term `trustee' means the Secretary or 
     any other person that is authorized to act as a trustee for 
     Indian trust assets and trust funds.''.

     SEC. 4. RESPONSIBILITIES OF SECRETARY.

       Section 102 of the American Indian Trust Fund Management 
     Reform Act of 1994 (25 U.S.C. 4011) is amended to read as 
     follows:

     ``SEC. 4011. RESPONSIBILITIES OF SECRETARY.

       ``(a) Accounting for Daily and Annual Balances of Indian 
     Trust Funds.--
       ``(1) In general.--The Secretary shall account for the 
     daily and annual balances of all trust funds that are 
     deposited or invested pursuant to the Act of June 24, 1938 
     (25 U.S.C. 162a).
       ``(2) Periodic statement of performance.--
       ``(A) In general.--Not later than 20 business days after 
     the close of a calendar quarter, the Secretary shall provide 
     a statement of performance to each Indian tribe and member of 
     Indian tribe with respect to which funds are deposited or 
     invested pursuant to the Act of June 24, 1938 (25 U.S.C. 
     162a).
       ``(B) Requirements.--Each statement under subparagraph (A) 
     shall identify, with respect to the period covered by the 
     statement--
       ``(i) the source, type, and status of the funds;
       ``(ii) the beginning balance of the funds;
       ``(iii) the gains and losses of the funds;
       ``(iv) receipts and disbursements of the funds; and
       ``(v) the ending balance of the funds.
       ``(3) Annual audit.--With respect to each account 
     containing trust funds in an amount in excess of $1,000, the 
     Secretary shall--
       ``(A) conduct, for each fiscal year, an audit of all trust 
     funds described in paragraph (1); and
       ``(B) include, in the first statement of performance 
     completed under paragraph (2) after completion of the audit, 
     a letter describing the results of the audit.
       ``(b) Additional Responsibilities.--In addition to the 
     responsibilities described in subsection (a), subject to the 
     availability of appropriations, the Secretary, in carrying 
     out the trust responsibility of the United States, shall, at 
     a minimum--
       ``(1) provide for adequate systems for accounting for and 
     reporting trust fund balances;
       ``(2) provide for adequate controls over receipts and 
     disbursements;
       ``(3) provide for periodic, timely reconciliations of 
     financial records to ensure the accuracy of account 
     information;
       ``(4) determine accurate cash balances;
       ``(5) prepare and supply to account holders periodic 
     account statements;
       ``(6) establish and publish in the Federal Register 
     consistent policies and procedures for trust fund management 
     and accounting;
       ``(7) provide adequate staffing, supervision, and training 
     for trust fund management and accounting; and
       ``(8) manage natural resources located within the 
     boundaries of Indian reservations and trust land.''.

     SEC. 5. INDIAN PARTICIPATION IN TRUST FUND ACTIVITIES.

       Title II of the American Indian Trust Fund Management 
     Reform Act of 1994 (25 U.S.C. 4021 et seq.) is amended--
       (1) by striking sections 202 and 203; and
       (2) by inserting after section 201 the following:

     ``SEC. 202. PARTICIPATION IN TRUST FUND AND TRUST ASSET 
                   MANAGEMENT ACTIVITIES BY INDIAN TRIBES.

       ``(a) Planning Program.--To meet the purposes of this 
     title, an Indian Trust Fund and Trust Asset Management and 
     Monitoring Plan (in this section referred to as the `Plan') 
     shall be developed and implemented as follows:
       ``(1) Pursuant to a self-determination contract or compact 
     under section 102 of the Indian Self-Determination Act (25 
     U.S.C. 450f) or section 403 of the Indian Self Determination 
     and Education Assistance Act (25 U.S.C. 458cc), an Indian 
     tribe may develop or implement a Plan to provide for 
     management of the trust funds and assets (or portions of 
     trust funds or assets) of which the Indian tribe is the 
     beneficial owner. Subject to the provisions of paragraphs (3) 
     and (4), the tribe shall have broad discretion in designing 
     and carrying out the planning process.
       ``(2) To include in a Plan particular trust funds or assets 
     held by multiple individuals, an Indian tribe shall obtain 
     the approval of a majority of the individuals who hold an 
     interest in any such trust funds or assets.
       ``(3) The Plan shall be submitted to the Secretary for 
     approval pursuant to the Indian Self-Determination Act (25 
     U.S.C. 450f et seq.).
       ``(4) If an Indian tribe chooses not to develop or 
     implement a Plan, the Secretary shall, at the request of the 
     Indian tribe, develop or implement, as appropriate, a Plan in 
     close consultation with the affected Indian tribe.
       ``(5) Whether developed directly by the Indian tribe or by 
     the Secretary, the Plan shall--
       ``(A) determine the amount and source of funds held in 
     trust;
       ``(B) identify and include an inventory of trust assets 
     based on the information available to the Indian tribe and 
     the Secretary;
       ``(C) identify specific tribal goals and objectives;
       ``(D) establish management objectives for the funds and 
     assets held in trust;
       ``(E) define critical values of the Indian tribe and its 
     members and provide identified management objectives;
       ``(F) identify actions to be taken to reach established 
     objectives;
       ``(G) use existing survey documents, reports and other 
     research from Federal agencies, tribal community colleges, 
     and land grant universities; and
       ``(H)(i) be completed not later than 3 years after the date 
     of initiation of activity to establish the Plan; and
       ``(ii) be revised periodically thereafter as necessary to 
     accomplish the purposes of this Act.
       ``(b) Management and Administration.--Plans developed and 
     approved under subsection (a) shall govern the management and 
     administration of funds and assets (or portions of funds and 
     assets) held in trust by the Bureau and the Indian tribal 
     government.
       ``(c) Plan Does Not Terminate Trust.--Developing or 
     implementing a Plan shall not be construed or deemed to 
     constitute a termination of the trust status of the assets or 
     funds that are included in, or subject to, the Plan.
       ``(d) Liability.--An Indian tribe managing and 
     administering trust funds and trust assets in a manner that 
     is consistent with an approved Plan shall not be liable for 
     waste or loss of an asset or funds that are included in such 
     Plan.
       ``(e) Indian Participation in Management Activities.--
       ``(1) Tribal recognition.--The Secretary shall conduct all 
     management activities of funds and assets held in trust in 
     accordance with goals and objectives set forth in a Plan 
     approved pursuant to and in accordance with all tribal laws 
     and ordinances, except in specific instances where such 
     compliance would be contrary to the trust responsibility of 
     the United States.
       ``(2) Tribal laws.--
       ``(A) In general.--Unless otherwise prohibited by Federal 
     law, the Secretary shall comply with tribal law pertaining to 
     the management of funds and assets held in trust.
       ``(B) Duties.--The Secretary shall--
       ``(i) provide assistance in the enforcement of tribal laws 
     described in subparagraph (A);
       ``(ii) provide notice of such tribal laws to persons or 
     entities dealing with tribal funds and assets held in trust; 
     and
       ``(iii) upon the request of an Indian tribe, require 
     appropriate Federal officials to appear in tribal forums.
       ``(3) Waiver of regulations.--In any case in which a 
     regulation or administrative policy of the Department of the 
     Interior conflicts with the objectives of the Plan, or with a 
     tribal law, the Secretary shall waive the application of such 
     regulation or administrative policy unless such waiver would 
     constitute a violation of a Federal statute or judicial 
     decision or would conflict with the Secretary's trust 
     responsibility under Federal law.
       ``(4) Sovereign immunity.--This section does not constitute 
     a waiver of the sovereign immunity of the United States, nor 
     does it authorize tribal justice systems to review actions of 
     the Secretary.
       ``(5) Trust responsibility.--Nothing in this section shall 
     be construed to diminish or expand the trust responsibility 
     of the United States toward Indian funds and assets held in 
     trust, or any legal obligation or remedy resulting from such 
     funds and assets.
       ``(f) Report.--
       ``(1) In general.--Not later than 180 days after the 
     enactment of this section, and annually thereafter, the 
     Secretary shall submit a report to the Committee on Indian 
     Affairs of the Senate and the Committee on Resources of the 
     House of Representatives.
       ``(2) Contents.--The report required under paragraph (1) 
     shall detail the following:
       ``(A) The efforts of the Department to implement this 
     section.
       ``(B) The nature and extent of consultation between the 
     Department, Tribes, and individual Indians with respect to 
     implementation of this section.
       ``(C) Any recommendations of the Department for further 
     changes to this Act, accompanied by a record of consultation 
     with Tribes and individual Indians regarding such 
     recommendations.''.

     SEC. 6. DEPUTY SECRETARY FOR TRUST MANAGEMENT AND REFORM.

       (a) In General.--Section 302 of the American Indian Trust 
     Fund Management Reform Act of 1994 (25 U.S.C. 4042) is 
     amended to read as follows:

     ``SEC. 302. DEPUTY SECRETARY FOR TRUST MANAGEMENT AND REFORM.

       ``(a) Establishment.--

[[Page S864]]

       ``(1) In general.--There is established within the 
     Department the position of Deputy Secretary for Trust 
     Management and Reform.
       ``(2) Appointment and removal.--
       ``(A) Appointment.--The Deputy Secretary shall be appointed 
     by the President, by and with the advice and consent of the 
     Senate.
       ``(B) Term.--The Deputy Secretary shall be appointed for a 
     term of 6 years.
       ``(C) Removal.--The Deputy Secretary may be removed only 
     for good cause.
       ``(3) Administrative authority.--The Deputy Secretary shall 
     report directly to the Secretary.
       ``(4) Compensation.--The Deputy Secretary shall be paid at 
     a rate determined by the Secretary to be appropriate for the 
     position, but not less than the rate of basic pay prescribed 
     for Level II of the Executive Schedule under section 5313 of 
     title 5, United States Code.
       ``(b) Duties.--The Deputy Secretary shall--
       ``(1) oversee all trust fund and trust asset matters of the 
     Department, including--
       ``(A) administration and management of the Reform Office;
       ``(B) financial and human resource matters of the Reform 
     Office; and
       ``(C) all duties relating to trust fund and trust asset 
     matters; and
       ``(2) engage in appropriate government-to-government 
     relations and consultations with Indian tribes and individual 
     trust asset and trust fund account holders on matters 
     involving trust asset and trust fund management and reform 
     within the Department.
       ``(c) Staff.--In carrying out this section, the Deputy 
     Secretary may hire such staff having expertise in trust asset 
     and trust fund management, financial organization and 
     management, and tribal policy as the Deputy Secretary 
     determines is necessary to carry out this title.
       ``(d) Effect on Duties of Other Officials.--
       ``(1) In general.--Except as provided in paragraph (2), 
     nothing in this section shall be construed to diminish any 
     responsibility or duty of the Assistant Secretary of the 
     Interior for Indian Affairs, or any other Federal official, 
     relating to any duty of the Assistant Secretary or official 
     established under this Act or any other provision of law.
       ``(2) Trust asset and trust fund management and reform.--
     Notwithstanding any other provision of law, the Deputy 
     Secretary shall have overall management and oversight 
     authority on matters of the Department relating to trust 
     asset and trust fund management and reform (including matters 
     that, as of the day before the date of enactment of the 
     Indian Trust Asset and Trust Fund Management and Reform Act 
     of 2003, were carried out by the Commissioner of Indian 
     Affairs).
       ``(e) Office of Trust Reform Implementation and 
     Oversight.--
       ``(1) Establishment.--There is established within the 
     Office of the Secretary the Office of Trust Reform 
     Implementation and Oversight.
       ``(2) Reform office head.--The Reform Office shall be 
     headed by the Deputy Secretary.
       ``(3) Duties.--The Reform Office shall--
       ``(A) supervise and direct the day-to-day activities of the 
     Assistant Secretary of the Interior for Indian Affairs, the 
     Commissioner of Reclamation, the Director of the Bureau of 
     Land Management, and the Director of the Minerals Management 
     Service, to the extent they administer or manage any Indian 
     trust assets or funds;
       ``(B) administer, in accordance with title II, all trust 
     properties, funds, and other assets held by the United States 
     for the benefit of Indian tribes and individual members of 
     Indian tribes;
       ``(C) require the development and maintenance of an 
     accurate inventory of all trust funds and trust assets;
       ``(D) ensure the prompt posting of revenue derived from a 
     trust fund or trust asset for the benefit of each Indian 
     tribe (or individual member of each Indian tribe) that owns a 
     beneficial interest in the trust fund or trust asset;
       ``(E) ensure that all trust fund accounts are audited at 
     least annually, and more frequently as determined to be 
     necessary by the Deputy Secretary;
       ``(F) ensure that the Assistant Secretary of the Interior 
     for Indian Affairs, the Director of the Bureau of Land 
     Management, the Commissioner of Reclamation, and the Director 
     of the Minerals Management Service provide to the Secretary 
     current and accurate information relating to the 
     administration and management of trust funds and trust 
     assets;
       ``(G) provide for regular consultation with trust fund 
     account holders on the administration of trust funds and 
     trust assets to ensure, to the maximum extent practicable in 
     accordance with applicable law and a Plan approved under 
     section 202, the greatest return on those funds and assets 
     for the trust fund account holders; and
       ``(H) enter into contracts and compacts under section 102 
     of the Indian Self-Determination Act (25 U.S.C. 450f) or 
     section 403 of the Indian Self Determination and Education 
     Assistance Act (25 U.S.C. 458cc) to provide for the 
     management of trust assets and trust funds by Indian tribes 
     pursuant to a Trust Fund and Trust Asset Management and 
     Monitoring Plan developed under section 202 of this Act.
       ``(f) Authorization of Appropriations.--There are 
     authorized to be appropriated such sums as are necessary to 
     carry out this section.''.
       (b) Conforming Amendments.--
       (1) Title III of the American Indian Trust Fund Management 
     Reform Act of 1994 (25 U.S.C. 4041 et seq.) is amended by 
     striking the title heading and inserting the following:

        ``TITLE III--REFORMS RELATING TO TRUST RESPONSIBILITY''.

       (2) Section 301(1) of the American Indian Trust Fund 
     Management Reform Act of 1994 (25 U.S.C. 4041(1)) is amended 
     by striking ``by establishing in the Department of this 
     Interior an Office of Special Trustee for American Indians'' 
     and inserting ``by directing the Deputy Secretary''.
       (3) Section 303 of the American Indian Trust Fund 
     Management Reform Act of 1994 (25 U.S.C. 4043) is amended--
       (A) by striking the section heading and inserting the 
     following:

     ``SEC. 303. ADDITIONAL AUTHORITIES AND FUNCTIONS OF THE 
                   DEPUTY SECRETARY.'';

       (B) in subsection (a)(1), by striking ``section 302(b) of 
     this title'' and inserting ``section 302(a)(2)'';
       (C) in subsection (e)--
       (i) by striking the subsection heading and inserting the 
     following:
       ``(e) Access of Deputy Secretary.--''; and
       (ii) by striking ``and his staff'' and inserting ``and 
     staff of the Deputy Secretary''; and
       (D) by striking ``Special Trustee'' each place it appears 
     and inserting ``Deputy Secretary''.
       (4) Sections 304 and 305 of the American Indian Trust Fund 
     Management Reform Act of 1994 (25 U.S.C. 4044, 4045) are 
     amended by striking ``Special Trustee'' each place it appears 
     and inserting ``Deputy Secretary''.

     SEC. 7. ADVISORY BOARD AND TRIBAL TASK FORCE.

       The American Indian Trust Fund Management Reform Act of 
     1994 is amended by striking section 306 (25 U.S.C. 4046) and 
     inserting the following:

     ``SEC. 306. TRIBAL TASK FORCE ON TRUST REFORM.

       ``(a) Establishment.--As soon as practicable after the date 
     of enactment of this section, the Deputy Secretary shall 
     establish a Tribal Task Force on Trust Reform.
       ``(b) Composition.--
       ``(1) In general.--The Task Force shall be composed of 18 
     members and 12 alternates, of which--
       ``(A) 6 members shall--
       ``(i) serve as primary members; and
       ``(ii) be selected by the Deputy Secretary;
       ``(B) 12 members shall--
       ``(i) serve as primary members; and
       ``(ii) be selected by members of federally-recognized 
     Indian tribes located within the regions of the Bureau 
     represented by the members; and
       ``(C) the 12 alternates shall--
       ``(i) serve as alternate members for the members described 
     in subparagraph (B); and
       ``(ii) be selected by members of federally-recognized 
     Indian tribes located within the regions of the Bureau 
     represented by the members.
       ``(2) Regional representation.--Each region of the Bureau 
     shall be represented by a primary member and alternate member 
     on the Task Force.
       ``(3) Term.--A member of the Task Force shall serve for a 
     term of 2 years.
       ``(c) Duties.--The Task Force, in cooperation with the 
     Deputy Secretary, shall--
       ``(1) not later than 1 year after the date of enactment of 
     this section, conduct and submit to Congress a report on a 
     study of appropriate standards and procedures for 
     inventorying and management of trust assets; and
       ``(2) not later than 2 years after the date of enactment of 
     this section, identify, and submit to Congress a report that 
     includes recommendations relating to, modifications to 
     existing law relating to trust reform, including 
     recommendations on matters such as--
       ``(A) the need for an independent commission to oversee the 
     administration of trust funds and assets; and
       ``(B) the most beneficial administrative structure and 
     procedures.
       ``(d) FACA.--The Task Force shall not be subject to the 
     Federal Advisory Committee Act (5 U.S.C. App.).
       ``(e) Authorization of Appropriations.--There are 
     authorized to be appropriated such sums as are necessary to 
     carry out this section.
       ``(f) Termination of Authority.--The Task Force and 
     authority of the Task Force under this section terminate on 
     the date that is 3 years after the date of enactment of the 
     Indian Trust Asset and Trust Fund Management and Reform Act 
     of 2003.''.

     SEC. 8. REGULATIONS.

       (a) In General.--Not later than 1 year after the date of 
     enactment of this Act, the Secretary of the Interior shall 
     promulgate regulations to carry out the amendments made by 
     this Act.
       (b) Active Participation.--
       (1) In general.--All regulations promulgated under 
     subsection (a) shall be developed through a negotiated 
     rulemaking in accordance with subchapter II of chapter 5, and 
     chapter 7, of title 5, United States Code (commonly known as 
     the ``Administrative Procedures Act'').
       (2) Participants.--With the exception of the Secretary of 
     the Interior, each participant in the negotiated rulemaking 
     under

[[Page S865]]

     paragraph (1) shall be a federally-recognized Indian tribe.

     SEC. 9. NO EFFECT ON CERTAIN JUDICIAL DECISION.

       Nothing in this Act or any amendment made by this Act 
     limits or otherwise affects any finding, remedy, 
     jurisdiction, authority, or discretion of any court with 
     respect to Cobell v. Norton, Civ. No. 96-1285 (RCL).
  Mr. DASCHLE. Mr. President, today I am joining with Senators John 
McCain and Tim Johnson in reintroducing legislation that will focus 
attention on the need to address and correct the longstanding problem 
of mismanagement of the assets and funds held by the United States in 
trust for federally-recognized Indian tribes and individual American 
Indians.
  This is a problem that has festered for far too long outside the 
spotlight of public recognition. And it is a problem that is 
undermining urgently needed efforts to improve the quality of life in 
Indian Country.
  Indian Country has faced many challenges over the years. Few, 
however, have been more important, or more vexing, than that of 
restoring integrity to trust fund management.
  For over a hundred years, the Department of Interior has managed a 
trust fund funded with the proceeds of leasing of oil, gas, land and 
mineral rights for the benefit of Indian people. Today, the trust fund 
may owe as much as $10 billion to as many as 500,000 Indians.
  To provide some perspective, the 16 tribes of the Great Plains in 
South Dakota, North Dakota and Nebraska comprise 10 million acres of 
trust lands representing over one-third of the tribal trust assets. 
Many enrolled members of the nine South Dakota tribes have individual 
trust accounts.
  How these trust funds have been and will be managed is being 
litigated in Cobell v. Norton, and the resolution of this lawsuit will 
have far-reaching implications throughout Indian Country. It is 
foolhardly not to evaluate potential solutions in the context of this 
lawsuit.
  There is clear consensus in Indian Country that the current 
administration of the trust fund is a failure. The daunting question 
has always been how to reform it.
  In November 2001, the Secretary of the Interior unveiled her 
controversial plan to reorganize the Bureau of Indian Affairs, BIA, and 
segregate the oversight and accounting of trust-related assets in a new 
Bureau of Indian Trust Asset Management, BITAM. In testimony before the 
U.S. District Court, the Secretary acknowledged that, ``We undoubtedly 
do have some missing data, and we are all going to have to find a way 
to deal with the fact that some information no longer exists.''
  The Secretary's controversial reorganization proposal, a hasty effort 
to avoid being held in contempt of court, was presented with minimal 
consultation with the tribes or individual Indian account holders, not 
to mention Congress.
  In South Dakota, tribal leaders communicated to Tim Johnson and me 
their concern that the Secretary's solution appeared to be a fait 
accompli, conceived without meaningful participation of the 
stakeholders most directly affected by it. They felt strongly that this 
proposal should not be implemented without further consultation with 
the tribes. Meanwhile, the Secretary of the Interior and the Assistant 
Secretary on Indian Affairs, despite their reorganization plan, were 
both subsequently found in contempt of court.
  In the early months of 2002, in the face of Administration assurances 
that its reorganization plan was not set in stone, the Interior 
Department requested that $200 million from the BIA and $100 million 
from the Office of the Special Trustee, be reprogrammed to ``a single 
organization that will report to the Secretary through an Assistant 
Secretary, Indian Trust.'' This contradiction set off red flags in 
Congress, and a clear and direct message was sent to Secretary Norton 
by Senators Inouye, Campbell, Byrd, Johnson and others that no action 
should be taken to implement her proposed reorganization plan 
administratively. Notwithstanding this clear signal, just this last 
December, while most members of Congress were out of town and with very 
little fanfare, the Secretary submitted yet another smaller request to 
reprogram BIA funds for trust fund reform activities.
  Given these developments, Senators McCain, Johnson and I feel that 
Congress should be more assertive in forcing discussion of what role 
Congress might play in ensuring that tribes and individual Indian 
account holders have a voice on shaping trust reform policy. It is our 
hope that this bill will promote more constructive dialogue among the 
Congress, the Interior Department and Indian Country on this problem 
and lead to a true consensus solution.
  With that goal in mind, the bill was received by representatives of 
the Great Plains tribes last Congress at a recent meeting in Rapid 
City. And earlier today, the Great Plains Tribal Chairman's Association 
urged me to re-introduce this legislation in the new Congress.
  Mike Jandreau, Chairman of the Lower Brule Sioux Tribe and member of 
the Secretary's Trust Reform Task Force, has been an effective advocate 
and champion of trust reform, not only for his tribe, but also for all 
Indian people. He and Flandreau-Santee Sioux Tribal Chairman and Great 
Plains Tribal Chairman's Association President Tom Ranfranz led a very 
impressive and productive working sessions with tribal leaders from 
South Dakota, North Dakota and Nebraska. Mike and Tom have also worked 
with tribal leaders from Montana and Wyoming to raise awareness of the 
stakes of this issue and build support for the bill that regrettably 
died at the end of the 107th Congress due to Administration opposition.
  I commend the willingness of these participating Great Plains and 
Rocky Mountain regional tribal leaders to be part of a public process 
that will hopefully will not stop until Indian Country feels 
comfortable with a final product they create. The McCain-Johnson-
Daschle bill is intended to contribute to this result.
  At this point, I would like to remind my colleagues some initial 
observations on this proposal that were raised in the last Congress by 
participating South Dakota treaty tribes and tribes of the Great Plains 
and Rocky Mountain regions that are still relevant in the 108th 
Congress. These comments demonstrate how thoughtfully Indian leaders 
are approaching the trust problem, and I fully expect that their 
suggestions will be considered and incorporated as the bill moves 
through the committee process.
  The following issues are of great importance to the Great Plains 
Tribal Chairman's Association:
  1. Providing the Deputy Secretary with sufficient authority to ensure 
that reform of the administration of trust assets is permanent. They do 
not believe the bill at present gives the Deputy Secretary the full and 
unified authority needed;
  2. Including cultural resources as a trust asset for management 
purposes;
  3. Incorporating the Office of Surface Mining and Bureau of 
Reclamation and other related agencies within the Department of the 
Interior and the Federal government under the purview of the Deputy 
Secretary;
  4. Assuring that the legislation not infringe on tribal sovereignty 
by interfering with tribal involvement in the management of individual 
trust assets or tribal assets, or both;
  5. Maintaining the Bureau of Indian Affairs' role as an advocate for 
tribe;
  6. Maintaining current levels of Bureau of Indian Affairs employment;
  7. Applying Indian employment preference to all positions created by 
the legislation;
  8. Providing in law that Bureau of Indian Affairs funds not be used 
to fund the Deputy Secretary appointed by the legislation;
  9. Stressing the importance of appropriating adequate funding to 
allow reform to succeed;
  10. Reflecting in the legislative history that much of the funding 
needed for real trust reform be allocated at the local agency and 
regional levels of the Bureau of Indian Affairs; and
  11. Placing more tribal representatives, including tribal resource 
managers, from various Bureau of Indian Affairs regions on the advisory 
board to the Office of Trust Reform.
  The issues of trust reform and reorganization within the Bureau of 
Indian Affairs are nothing new to us here on Capitol Hill, or in Indian 
Country. Collectively, we have endured many efforts, some will 
intentioned and some

[[Page S866]]

clearly not, to fix, reform, adjust, improve, streamline, downsize, and 
even terminate the Bureau of Indian Affairs and its trust activities.
  These efforts have been pursued under both Republican and Democratic 
administrations. Unfortunately, they have rarely included meaningful 
involvement from tribal leadership, or recognized the Federal 
Government's treaty obligation to tribes.
  I would be remiss if I did not commend this Administration for taking 
the time to travel to Indian Country to discuss this problem. Their 
interest in promoting dialogue with tribal leaders was welcome and 
appreciated. At the same time, however, talk must be supported by 
action if the trust management problem is to be successfully resolved.
  The recent unveiling last month of the Department of the Interior's 
attempt to implement a trust reorganization plan without full tribal or 
congressional consultation in response to the Cobell v. Norton case was 
appalling and an egregious act by the federal government to Indian 
stakeholders. One tribal task force member described Interior's latest 
deceptive actions as ``a sham.'' That sentiment is widespread in Indian 
Country and exacerbates an underlying frustration and disappointment 
that is both understandable and disconcerting.
  I share this frustration and disappointment. And I am concerned that 
the progress made jointly last year could be wasted away by a rising 
tide of disillusionment and mounting sense of betrayal.
  The message I have heard from tribal leaders is clear. What is needed 
to achieve true reform are clear trust standards, one clear line of 
authority for trust management and the resources necessary to achieve 
meaningful reform, respect for self-determination, and meaningful 
consultation.
  Meaningful consultation and acceptance of tribal status is the 
critical starting point if we hope to find a workable solution to the 
very real problem of trust management. The bill Senators McCain, 
Johnson and I are introducing today reflects this conviction.
  There is no more important challenge facing the tribes and their 
representatives in Congress than that of restoring accountability and 
efficiency to trust management. And nowhere do the principles of self-
determination and tribal sovereignty come more into play than in the 
management and distribution of trust funds and assets.
  I am disappointed that this problem was not solved to the 
satisfaction of tribal leaders in the last Congress. Yet, that fight is 
not over, and my commitment to my South Dakota tribal constituents and 
Indian Country on this important issue has not diminished.
  Last week, the Senate Democratic leadership introduced its priority 
bills for the 108th Congress. I am proud that trust reform is included 
as part of our civil rights legislation.
  An effective long-term solution to the trust problem must be based on 
government-to-government dialogue. The McCain/Johnson/Daschle bill will 
not only provide the catalyst for meaningful tribal involvement in the 
search for solutions, it can also form the basis for true trust reform. 
I look forward to participating with tribal leaders, Administration 
officials and my congressional colleagues in pursuit of this essential 
objective.

                          ____________________