[Congressional Record Volume 149, Number 112 (Friday, July 25, 2003)]
[Senate]
[Pages S9964-S9968]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mr. McCAIN (for himself, Mr. Daschle, and Mr. Johnson):
  S. 1459. A bill to provide for reform of management of Indian trust 
funds and assets under the jurisdiction of the Department of the 
Interior, and for other purposes; to the Committee on Indian Affairs.
  Mr. McCAIN. Mr. President, I rise to introduce legislation to serve 
as the basis for much needed reforms to the Federal Government's 
management of Indian trust funds and trust assets within the U.S. 
Department of the Interior. I am joined by my colleagues, Senators 
Daschle and Johnson, in this effort, as well as by Representatives Mark 
Udall and Nick Rahall whom are sponsoring a companion measure in the 
House of Representatives.
  This legislation is a reflection of a continuing effort by my 
colleagues and myself to develop a trust reform proposal that will not 
only serve to improve the Federal Government's administration and 
management of Indian trust funds and trust assets but it will also 
institute a role for Indian tribes to participate in developing 
additional needed reforms and enhance the principles of tribal self-
determination.
  Earlier this year, Senators Daschle, Johnson, and myself introduced 
similar trust reform legislation and received substantive feedback from 
Indian country on the bill. This feedback helped us in developing this 
new legislative proposal, which will serve as the framework for 
instituting broader reforms necessary for long-term management of 
tribal trust resources and enhancing Federal Indian policy. I thank the 
tribes and tribal organizations such as the Inter Tribal Monitoring 
Association, the Native American Rights Fund, and the National Congress 
of American Indians, which worked with our offices and helped to 
formulate the concepts embodied in this proposal. We are encouraged by 
their efforts and support to seek a legislative remedy to these 
difficult problems.
  The basic elements of this bill focus on three primary areas: the 
management of trust funds and trust assets will be elevated in the 
overall Department by designating a Deputy Secretary of Indian Affairs 
to assume the current responsibilities of the Assistant Secretary of 
Indian Affairs and the Special Trustee. Second, as determined by the 
court and the administration, it is Congress' duty to affirm fiduciary 
standards for proper management of these trust funds and trust assets, 
and this bill includes such standards. And, third, the role of the 
tribes is enhanced through affirmation of the authority of tribes to 
utilize self-determination laws to manage their own funds and assets. 
Tribes will also be engaged in determining additional necessary reforms 
through participation in an established congressional commission.
  The mismanagement of Indian trust funds is a long and disgraceful 
chapter in the history of this Nation. The 1994 American Indian Trust 
Fund Management Reform Act was enacted to take measures to reconcile 
these accounts and return the money to the Native American 
beneficiaries. Unfortunately, as continuing management problems persist 
and Native Americans are left out of the decision-making process about 
the management of their resources, it is time for Congress to step up 
and take decisive action to once again require significant reform with 
the active participation of the tribes.
  I am pleased that Senators Daschle and Johnson are committed to 
working with me once again on this legislation, and I am also 
encouraged by the interest of our House counterparts to jointly 
introduce this bill with us. I look forward to working with my 
colleagues and the tribes to advance this legislation. We are willing 
to consider additional review and comments and expect to further refine 
this bill as it moves through the legislative process.
  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. 1459

       Be it enacted by the Senate and House of Representatives of 
     the United States of America in Congress assembled,

     SECTION 1. SHORT TITLE.

       This Act may be cited as the ``American Indian Trust Fund 
     Management Reform Act Amendments Act of 2003''.

     SEC. 2. DEFINITIONS.

       Section 2 of the American Indian Trust Fund Management 
     Reform Act of 1994 (25 U.S.C. 4001) is amended--

[[Page S9965]]

       (1) by redesignating paragraphs (1), (2), (3), (4), (5), 
     and (6) as paragraphs (7), (4), (6), (5), (2), and (3), 
     respectively, and moving those paragraphs so as to appear in 
     numerical order; and
       (2) by inserting before paragraph (2) (as redesignated by 
     paragraph (1)) the following:
       ``(1) Audit.--The term `audit' means an audit using 
     accounting procedures that conform to generally accepted 
     accounting principles and auditing procedures that conform to 
     chapter 75 of title 31, United States Code (commonly known as 
     the `Single Audit Act of 1984'); and
       (3) by adding at the end the following:
       ``(8) Tribal government--The term `tribal government' means 
     the governing body of an Indian tribe.
       ``(9) Trust asset.--The term `trust asset' means any 
     tangible property (such as land, a mineral, coal, oil or gas, 
     a forest resource, an agricultural resource, water, a water 
     source, fish, or wildlife) held by the Secretary for the 
     benefit of an Indian tribe or an individual member of an 
     Indian tribe in accordance with Federal law.
       ``(10) Trust funds.--The term `trust funds' means--
       ``(A) all monies or proceeds derived from trust assets; and
       ``(B) all funds held by the Secretary for the benefit of an 
     Indian tribe or an individual member of an Indian tribe in 
     accordance with Federal law.
       ``(11) Trustee.--The term `trustee' means the Secretary or 
     any other person that is authorized to act as a trustee for 
     trust assets and trust funds.''.

     SEC. 3. 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. 102. 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.
       ``(2) Periodic statement of performance.--
       ``(A) In general.--Not later than 20 business days after 
     the close of the second calendar quarter after the date of 
     enactment of this paragraph, and not later than 20 business 
     days after the close of each calendar quarter thereafter, the 
     Secretary shall provide to each Indian tribe and individual 
     Indian for whom the Secretary manages trust funds a statement 
     of performance for the trust funds.
       ``(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) Audits.--With respect to each account containing 
     trust funds, the Secretary shall--
       ``(A) for accounts with less than $1,000, group accounts 
     separately to allow for statistical sampling audit 
     procedures;
       ``(B) for accounts containing more than $1,000 at any time 
     during a given fiscal year--
       ``(i) conduct, for each fiscal year, an audit of all trust 
     funds; and
       ``(ii) include, in the first statement of performance after 
     completion of the audit, a letter describing the results of 
     the audit.
       ``(b) Additional Responsibilities.--The responsibilities of 
     the Secretary in carrying out the trust responsibility of the 
     United States include, but are not limited to--
       ``(1) providing for adequate systems for accounting for and 
     reporting trust fund balances;
       ``(2) providing for adequate controls over receipts and 
     disbursements;
       ``(3) providing for periodic, timely reconciliations of 
     financial records to ensure the accuracy of account 
     information;
       ``(4) determining accurate cash balances;
       ``(5) preparing and supplying to account holders periodic 
     account statements;
       ``(6) establishing and publishing in the Federal Register 
     consistent policies and procedures for trust fund management 
     and accounting;
       ``(7) providing adequate staffing, supervision, and 
     training for trust fund management and accounting; and
       ``(8) managing natural resources located within the 
     boundaries of Indian reservations and trust land.''.

     SEC. 4. AFFIRMATION OF STANDARDS.

       Title I of the American Indian Trust Fund Management Reform 
     Act of 1994 (25 U.S.C. 4011 et seq.) is amended by adding at 
     the end the following:

     ``SEC. 105. AFFIRMATION OF STANDARDS.

       ``Congress affirms that the proper discharge of trust 
     responsibility of the United States requires, without 
     limitation, that the trustee, using the highest 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 without diminishing the trust 
     responsibility of the Secretary;
       ``(5) select and oversee persons that manage Indian trust 
     assets;
       ``(6) confirm that Indian tribes that manage Indian trust 
     assets in accordance with 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. 5. INDIAN PARTICIPATION IN TRUST FUND ACTIVITIES.

       Section 202 of the American Indian Trust Fund Management 
     Reform Act of 1994 (25 U.S.C. 4022) is amended by striking 
     subsection (c) and inserting the following:
       ``(c) Management Through Self-Determination Authority.--
       ``(1) In general.--An Indian tribe may use authority 
     granted to the Indian tribe under the Indian Self-
     Determination and Education Assistance Act (25 U.S.C. 450 et 
     seq.) to manage Indian trust funds and trust assets without 
     terminating--
       ``(A) the trust responsibility of the Secretary; or
       ``(B) the trust status of the funds and assets.
       ``(2) No effect on trust responsibility.--Nothing in this 
     subsection diminishes or otherwise impairs the trust 
     responsibility of the United States with respect to the 
     Indian people.''.

     SEC. 6. DEPUTY SECRETARY FOR INDIAN AFFAIRS.

       (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 INDIAN AFFAIRS.

       ``(a) Establishment.--
       ``(1) In general.--There is established within the 
     Department the position of Deputy Secretary for Indian 
     Affairs (referred to in this section as the `Deputy 
     Secretary'), who shall report directly to the Secretary.
       ``(2) Appointment.--The Deputy Secretary shall be appointed 
     by the President, by and with the advice and consent of the 
     Senate.
       ``(b) Duties.--
       ``(1) In general.--The Deputy Secretary shall--
       ``(A) oversee the Bureau of Indian Affairs;
       ``(B) be responsible for carrying out all duties assigned 
     to the Assistant Secretary for Indian Affairs as of the day 
     before the date of enactment of the American Indian Trust 
     Fund Management Reform Act Amendments Act of 2003;
       ``(C) oversee all trust fund and trust asset matters of the 
     Department, including--

[[Page S9966]]

       ``(i) administration and management of the Reform Office;
       ``(ii) financial and human resource matters of the Reform 
     Office; and
       ``(iii) all duties relating to trust fund and trust asset 
     matters;
       ``(D) 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; and
       ``(E) carry out such other duties relating to Indian 
     affairs as the Secretary may assign.
       ``(2) Transfer of duties of assistant secretary.--As of the 
     date of enactment of the American Indian Trust Fund 
     Management Reform Act Amendments Act of 2003, all duties 
     assigned to the Assistant Secretary for Indian Affairs shall 
     be transferred to, and become the responsibility of, the 
     Deputy Secretary.
       ``(3) Succession.--Any official who is serving as Assistant 
     Secretary for Indian Affairs on the date of enactment of the 
     American Indian Trust Fund Management Reform Act Amendments 
     Act of 2003 and who was appointed by the President, by and 
     with the advice and consent of the Senate, shall not be 
     required to be reappointed under subsection (a) to the 
     successor position authorized under subsection (a) if the 
     Secretary approves the occupation by the official of the 
     position by the date that is 180 days after the date of 
     enactment of the American Indian Trust Fund Management Reform 
     Act Amendments Act of 2003 (or such later date determined by 
     the Secretary if litigation delays rapid succession).
       ``(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 Federal Indian law and 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 subsection (c) and 
     paragraph (2), nothing in this section diminishes any 
     responsibility or duty of the Deputy Secretary of the 
     Interior appointed under the Act of May 9, 1935 (43 U.S.C. 
     1452), or any other Federal official, relating to any duty 
     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 
     Deputy Secretary, the Commissioner of Reclamation, the 
     Director of the Bureau of Land Management, and the Director 
     of the Minerals Management Service, to the extent that those 
     officials 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 Deputy Secretary, 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; and
       ``(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 consistent with the 
     beneficial owners intended uses for the trust funds.
       ``(4) Contracts and compacts.--The Reform Office may carry 
     out its duties directly or through 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) In general.--
       (A) Section 5313 of title 5, United States Code, is amended 
     by inserting ``Deputy Secretary of the Interior for Indian 
     Affairs'' after ``Deputy Secretary of the Interior''.
       (B) Section 5315 of title 5, United States Code, is amended 
     by striking ``Assistant Secretaries of the Interior (6)'' and 
     inserting ``Assistant Secretaries of the Interior (5)''.
       (C) 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''.

       (D) 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 the 
     Interior an Office of Special Trustee for American Indians'' 
     and inserting ``by directing the Deputy Secretary''.
       (E) Section 303 of the American Indian Trust Fund 
     Management Reform Act of 1994 (25 U.S.C. 4043) is amended--
       (i) by striking the section heading and inserting the 
     following:

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

       (ii) in subsection (a)(1), by striking ``section 302(b) of 
     this title'' and inserting ``section 302(a)(2)'';
       (iii) in subsection (e)--

       (I) by striking the subsection heading and inserting the 
     following:

       ``(e) Access of Deputy Secretary.--''; and

       (II) by striking ``of his duties'' and inserting ``of the 
     duties of the Deputy Secretary''; and

       (iv) by striking ``Special Trustee'' each place it appears 
     and inserting ``Deputy Secretary''.
       (F) 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''.
       (G) The first section of Public Law 92-22 (43 U.S.C. 1453a) 
     is repealed.
       (H) Any reference in a law, map, regulation, document, 
     paper, or other record of the United States to the Assistant 
     Secretary of the Interior for Indian Affairs shall be deemed 
     to be a reference to the Deputy Secretary of the Interior for 
     Indian Affairs.
       (2) Effective date.--The amendments made by this subsection 
     take effect on the date on which a Deputy Secretary for 
     Indian Affairs is appointed under section 302 of the American 
     Indian Trust Fund Management Reform Act (as amended by 
     subsection (a)).

     SEC. 7. COMMISSION FOR REVIEW OF INDIAN TRUST FUND MANAGEMENT 
                   RESPONSIBILITIES.

       (a) Establishment.--There is established a commission, to 
     be known as the ``Commission for Review of Indian Trust Fund 
     Management Responsibilities'' (referred to in this section as 
     the ``Commission''), for the purpose of assessing the 
     fiduciary and management responsibilities of the Federal 
     Government with respect to Indian tribes and individual 
     Indian beneficiaries.
       (b) Membership.--
       (1) In general.--The Commission shall be composed of 12 
     members, of whom--
       (A) 4 members shall be appointed by the President;
       (B) 2 members shall be appointed by the Majority Leader of 
     the Senate;
       (C) 2 members shall be appointed by the Minority Leader of 
     the Senate;
       (D) 2 members shall be appointed by the Speaker of the 
     House of Representatives; and
       (E) 2 members shall be appointed by the Minority Leader of 
     the House of Representatives.
       (2) Qualifications.--The membership of the Commission--
       (A) shall include a majority of individuals who are 
     representatives of federally recognized Indian tribes, 
     including at least 1 representative who is an individual 
     Indian trust fund account holder; and
       (B) shall include members who have experience in--
       (i) trust management;
       (ii) fiduciary investment management;
       (iii) Federal Indian law and policy; and
       (iv) financial management.
       (3) Chairperson.--The Commission shall select a Chairperson 
     from among the members of the Commission.
       (4) Date of appointments.--The appointment of a member of 
     the Commission shall be made not later than 90 days after the 
     date of enactment of this Act.
       (5) Term; vacancies.--
       (A) Term.--A member shall be appointed for the life of the 
     Commission.
       (B) Vacancies.--A vacancy on the Commission--
       (i) shall not affect the powers of the Commission; and
       (ii) shall be filled in the same manner as the original 
     appointment was made.
       (c) Meetings.--
       (1) Initial meeting.--Not later than 60 days after the date 
     on which all members of the Commission have been appointed, 
     the Commission shall hold the initial meeting of the 
     Commission.
       (2) Procedures.--The Commission shall--

[[Page S9967]]

       (A) meet at the call of the Chairperson; and
       (B) establish procedures for conduct of business of the 
     Commission, including public hearings.
       (3) Quorum.--A majority of the members of the Commission 
     shall constitute a quorum, but a lesser number of members may 
     hold hearings.
       (d) Duties.--The Commission shall--
       (1) review and assess Federal laws and policies relating to 
     the management of Indian trust funds;
       (2) make recommendations (including legislative and 
     administrative recommendations) relating to management of 
     Indian trust funds, including but not limited to options 
     for--
       (A) historical accounting;
       (B) settlement of disputed tribal and individual accounts; 
     and
       (C) revisions of--
       (i) management standards;
       (ii) administrative management structure;
       (iii) investment policies and accounting; and
       (iv) reporting procedures; and
       (3) carry out such other duties as the President may assign 
     to the Commission.
       (e) Report.--Not later than 32 months after the date on 
     which the Commission holds the initial meeting of the 
     Commission, the Commission shall submit to Congress, the 
     Secretary of the Interior, and the Secretary of the Treasury 
     a report that includes the results of the assessment 
     conducted, and the recommendations made, by the Commission 
     under subsection (d).
       (f) Powers of Commission.--
       (1) Hearings.--The Commission may hold such hearings, meet 
     and act at such times and places, take such testimony, and 
     receive such evidence as the Commission considers advisable 
     to carry out this section.
       (2) Information from federal agencies.--
       (A) In general.--The Commission may secure directly from a 
     Federal agency such information as the Commission considers 
     necessary to carry out this section.
       (B) Provision of information.--On request of the 
     Chairperson of the Commission, the head of the agency shall 
     provide the information to the Commission.
       (3) Access to personnel.--The Commission shall have 
     reasonable access to staff responsible for Indian trust 
     management in--
       (A) the Department of the Interior;
       (B) the Department of Treasury; and
       (C) the Department of Justice.
       (4) Postal Services.--The Commission may use the United 
     States mails in the same manner and under the same conditions 
     as other agencies of the Federal Government.
       (5) Gifts.--The Commission may accept, use, and dispose of 
     gifts or donations of services or property.
       (g) Commission Personnel Matters.--
       (1) Compensation of members.--
       (A) Non-federal employees.--A member of the Commission who 
     is not an officer or employee of the Federal Government shall 
     be compensated at a rate equal to the daily equivalent of the 
     annual rate of basic pay prescribed for level IV of the 
     Executive Schedule under section 5315 of title 5, United 
     States Code, for each day (including travel time) during 
     which the member is engaged in the performance of the duties 
     of the Commission.
       (B) Federal employees.--A member of the Commission who is 
     an officer or employee of the Federal Government shall serve 
     without compensation in addition to the compensation received 
     for the services of the member as an officer or employee of 
     the Federal Government.
       (2) Travel expenses.--A member of the Commission shall be 
     allowed travel expenses, including per diem in lieu of 
     subsistence, at rates authorized for an employee of an agency 
     under subchapter I of chapter 57 of title 5, United States 
     Code, while away from the home or regular place of business 
     of the member in the performance of the duties of the 
     Commission.
       (3) Staff.--
       (A) In general.--The Chairperson of the Commission may, 
     without regard to the civil service laws (including 
     regulations), appoint and terminate an executive director and 
     such other additional personnel as are necessary to enable 
     the Commission to perform the duties of the Commission.
       (B) Confirmation of executive director.--The employment of 
     an executive director shall be subject to confirmation by the 
     Commission.
       (C) Compensation.--
       (i) In general.--Except as provided in clause (ii), the 
     Chairperson of the Commission may fix the compensation of the 
     executive director and other personnel without regard to the 
     provisions of chapter 51 and subchapter III of chapter 53 of 
     title 5, United States Code, relating to classification of 
     positions and General Schedule pay rates.
       (ii) Maximum rate of pay.--The rate of pay for the 
     executive director and other personnel shall not exceed the 
     rate payable for level V of the Executive Schedule under 
     section 5316 of title 5, United States Code.
       (h) Exemption From FACA.--The Federal Advisory Committee 
     Act (5 U.S.C. App.) shall not apply to the Commission.
       (i) Authorization of Appropriations.--There are authorized 
     to be appropriated such sums as are necessary to carry out 
     this section.
       (j) Termination of Commission.--The Commission and the 
     authority of the Commission under this section terminates on 
     the date that is 3 years after the date on which the 
     Commission holds the initial meeting of the Commission.

     SEC. 8. REGULATIONS.

       The Secretary of the Interior, in consultation with 
     interested Indian tribes, shall promulgate such regulations 
     as are necessary to carry out this Act and amendments made by 
     this Act.

     SEC. 9. EFFECT OF ACT.

       (a) Court Proceedings.--Nothing in this Act limits the 
     findings, remedies, jurisdiction, authority, or discretion of 
     the courts in the matter entitled Cobell v. Norton, Civ. No. 
     96-1285 (RCL).
       (b) Use of Funds.--No funds appropriated for the purpose of 
     an historical accounting of the individual Indian trust funds 
     shall be used except as provided in an order of the court in 
     Cobell v. Norton, Civ. No. 96-1285 (RCL) entered after the 
     date of enactment of this Act.

  Mr. DASCHLE. Mr. President, today I once again join with Senators 
John McCain and Tim Johnson in introducing legislation that addresses 
the longstanding problem of mismanagement of assets held by the United 
States in trust for federally recognized Indian tribes and individual 
American Indians.
  Indian country has faced many challenges over the years. Few, 
however, have had more far-ranging ramifications on the lives of 
individual Native Americans, or been more vexing, than that of 
restoring integrity to trust fund management.
  For over 100 years, the Department of the Interior has administered a 
trust fund containing the proceeds of leasing of oil, gas, land and 
mineral rights on Indian land for the benefit of Indian people. Today, 
that 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 hold 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.
  There is little disagreement that current government administration 
of the trust fund is a failure. However, there is no consensus on how 
to reform it.
  Senators McCain, Johnson, and I believe that Congress should be more 
assertive in promoting a solution to the trust management problem and 
in ensuring that tribes and individual Indian account holders have a 
true voice in shaping that solution. That is why we have proposed 
legislation that would redesign the trust management process.
  Today, Senators McCain, Johnson, and I are introducing a revised 
version of S. 175, a trust reform proposal we introduced earlier this 
year. This bill incorporates feedback we received from interested 
stakeholders and responds to developments that have occurred since S. 
175 was introduced.
  We are joined in this effort by Representatives Mark Udall and Nick 
Rahall who are introducing a companion measure in the House. I commend 
them for their commitment to correcting the trust management problem 
and value their leadership on this issue.
  This legislation lays out legislative standards that form the 
cornerstone of the United States of America's trust responsibility to 
Indian nations. It directs the Secretary of the Interior to conduct a 
historical accounting for all trust accounts, regardless of amount, and 
authorizes an Indian tribe to manage Indian trust funds or trust assets 
through contracts or compacts. The trust responsibility of the 
Secretary or the trust status of funds and assets is not terminated but 
a voluntary option of cobeneficiary management is allowed if a tribe 
chooses that option.
  A clear line of authority for trust management is established by 
elevating the Assistant Secretary of Indian Affairs to Deputy Secretary 
of Indian Affairs status. The special trustee's responsibilities are 
transferred to the Deputy Secretary, and the special trustee is 
terminated as intended in the 1994 act.
  Finally, a temporary congressional commission is created to review 
trust funds management by the Department of the Interior. Comprised of 
12 members, it will review and assess Federal management of trust funds 
and provide recommendations relating to the administrative and 
management duties of the Department.
  It is our hope that this proposal will encourage more constructive 
dialog among the Congress, the Interior Department, and Indian country 
on the

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trust management problem and lead to a true consensus solution. With 
that goal in mind, the bill has been reviewed by representatives of the 
Great Plains tribes, the Native American Rights Fund, the National 
Congress of American Indians, the InterTribal Monitoring Association, 
and the tribes of Arizona.
  With respect to the Great Plains tribes, I would like to note that 
Mike Jandreau, chairman of the Lower Brule Sioux Tribe, has been a 
particularly eloquent advocate and effective champion of trust reform. 
Mike and Cheyenne River Sioux tribal chairman, Harold Frazier, led very 
productive working sessions with tribal leaders from South Dakota, 
North Dakota, and Nebraska that both raised awareness of the importance 
of this issue and built support for the bill that is being introduced 
today.
  I commend the commitment and contribution of the participating Great 
Plains tribal leaders who have been an integral part of a public 
process that will not stop until the trust management problem is 
solved. The McCain-Daschle-Johnson bill is intended to contribute to 
this result.
  It should also be noted and understood that we are not addressing the 
Cobell litigation or settlement issues in this bill. Our focus is the 
broader trust responsibility of the Department of the Interior.
  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 well 
intentioned and some 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 of tribal leadership or respected the Federal Government's 
treaty obligation to tribes.
  Restoring accountability and efficiency to trust management is a 
matter of fundamental justice. 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 deeply disappointed that this problem has not been solved to the 
satisfaction of tribal leaders by now. That fight is not over.
  An effective long-term solution to the trust problem must be based on 
government-to-government dialog. The McCain-Daschle-Johnson 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.
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