[Congressional Record Volume 149, Number 143 (Tuesday, October 14, 2003)]
[Senate]
[Pages S12535-S12543]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mr. CAMPBELL:
  S. 1721. A bill to amend the Indian Land Consolidation Act to improve 
provisions relating to probate of trust and restricted land, and for 
other purposes; to the Committee on Indian Affairs.
  Mr. CAMPBELL. Mr. President, today I am pleased to introduce the 
American Indian Probate Reform Act of 2003, which builds on the solid 
foundation laid in Indian Land Consolidation Act Amendments of 2000, 
P.L. 106-462, and S. 550, the Indian Probate Act of 2003, which I also 
sponsored. The bill I am introducing today would bring a number of 
greatly needed amendments to the Indian Land Consolidation Act 
Amendments of 2000, including a revised uniform Federal probate code 
applicable to trust and restricted Indian lands, and provisions that 
will facilitate the consolidation of interests in highly fractionated 
Indian lands.
  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. 1721

       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 Probate 
     Reform Act of 2003''.

     SEC. 2. FINDINGS.

       Congress finds that--
       (1) the Act of February 8, 1887 (commonly known as the 
     ``Indian General Allotment Act'') (25 U.S.C. 331 et seq.), 
     which authorized the allotment of Indian reservations, did 
     not permit Indian allotment owners to provide for the 
     testamentary disposition of the land that was allotted to 
     them;
       (2) that Act provided that allotments would descend 
     according to State law of intestate succession based on the 
     location of the allotment;
       (3) the reliance of the Federal Government on the State law 
     of intestate succession with respect to the descent of 
     allotments has resulted in numerous problems affecting Indian 
     tribes, members of Indian tribes, and the Federal Government, 
     including
       (A) the increasingly fractionated ownership of trust and 
     restricted land as that land is inherited by successive 
     generations of owners as tenants in common;
       (B) the application of different rules of intestate 
     succession to each interest of a decedent in or to trust or 
     restricted land if that land is located within the boundaries 
     of more than 1 State, which application--
       (i) makes probate planning unnecessarily difficult; and
       (ii) impedes efforts to provide probate planning assistance 
     or advice;
       (C) the absence of a uniform general probate code for trust 
     and restricted land, which makes it difficult for Indian 
     tribes to work cooperatively to develop tribal probate codes; 
     and
       (D) the failure of Federal law to address or provide for 
     many of the essential elements of general probate law, either 
     directly or by reference, which--
       (i) is unfair to the owners of trust and restricted land 
     (and heirs and devisees of owners); and
       (ii) makes probate planning more difficult; and
       (4) a uniform Federal probate code would likely--
       (A) reduce the number of fractionated interests in trust or 
     restricted land;
       (B) facilitate efforts to provide probate planning 
     assistance and advice;
       (C) facilitate intertribal efforts to produce tribal 
     probate codes in accordance with section 206 of the Indian 
     Land Consolidation Act (25 U.S.C. 2205); and
       (D) provide essential elements of general probate law that 
     are not applicable on the date of enactment of this Act to 
     interests in trust or restricted land.

     SEC. 3. INDIAN PROBATE REFORM.

       (a) Testamentary Disposition.--Section 207 of the Indian 
     Land Consolidation Act (25 U.S.C. 2206) is amended by 
     striking subsection (a) and inserting the following:
       ``(a) Testamentary Disposition.--
       ``(1) General devise of an interest in trust or restricted 
     land.--
       ``(A) In general.--Subject to any applicable Federal law 
     relating to the devise or descent of trust or restricted 
     land, or a tribal probate code approved by the Secretary in 
     accordance with section 206, the owner of an interest in 
     trust or restricted land may devise such an interest to--
       ``(i) an Indian tribe with jurisdiction over the land; or
       ``(ii) any Indian; or
       ``(iii) any lineal descendant of the testator; or
       ``(iv) any person who owns a preexisting undivided trust or 
     restricted interest in the same parcel of land;
     in trust or restricted status.
       ``(B) Rule of interpretation.--Any devise of an interest in 
     trust or restricted land or personal property to a devisee 
     listed in subparagraph (A) shall be considered to be a devise 
     of the interest in trust or restricted status, unless--
       ``(i) language in the will clearly evidences the testator's 
     intent that the interest is to vest in the devisee as a fee 
     interest without restrictions; or
       ``(ii) the interest devised is a life estate.
       ``(2) Devise of trust or restricted land as a life estate 
     or in fee.--
       ``(A) In general.--Except as provided under any applicable 
     Federal law, any interest in trust or restricted land that is 
     not devised in accordance with paragraph (1) may be devised 
     only--
       ``(i) as a life estate without regard to waste to any 
     person, with the remainder being devised only in accordance 
     with subparagraph (B) or paragraph (1); or
       ``(ii) except as provided in subparagraph (B), in fee to 
     any person.
       ``(B) Limitation.--Any interest in trust or restricted land 
     that is subject to section 4 of the Act of June 18, 1934 (25 
     U.S.C. 464), may be devised only in accordance with--
       ``(i) that section;
       ``(ii) subparagraph (A)(i); or
       ``(iii) paragraph (1).
       ``(3) General devise of an interest in trust or restricted 
     personal property.--
       ``(A) Trust or restricted personal property defined.--The 
     term `Trust or restricted personal property' as used in this 
     section includes--
       ``(i) all funds and securities of any kind which are held 
     in trust in an individual Indian money account or otherwise 
     supervised for the decedent by the Secretary; and

[[Page S12536]]

       ``(ii) absent clear evidence to the contrary, all personal 
     property permanently affixed to trust or restricted lands.
       ``(B) In general.--Subject to any applicable Federal law 
     relating to the devise or descent of such trust or restricted 
     personal property, or a tribal probate code approved by the 
     Secretary in accordance with section 206, the owner of an 
     interest in trust or restricted personal property may devise 
     such an interest to any person or entity.
       ``(C) Maintenance as trust or restricted personal 
     property.--Except as provided in paragraph (1)(B), where an 
     interest in trust or restricted personal property is devised 
     to a devisee listed in paragraph (1)(A), the Secretary shall 
     maintain and continue to manage such interests as trust or 
     restricted personal property .
       ``(D) Direct disbursement and distribution.--In the case of 
     a devise of an interest in trust or restricted personal 
     property to a devisee not listed in paragraph (1)(A), the 
     Secretary shall directly disburse and distribute such 
     personal property to the devisee.
       ``(4) Ineligible devisees of trust or restricted interest; 
     invalid wills.--Any interest in trust or restricted land or 
     personal property that is devised as a trust or restricted 
     interest to a devisee not listed in subparagraph (A) of 
     paragraph (1) shall descend to the devisee as a fee interest. 
     Any interest in trust or restricted land or personal property 
     that is not disposed of by a valid will shall descend in 
     accordance with the applicable law of intestate succession as 
     provided for in subsection (b).''.
       (b) Nontestamentary Disposition.--Section 207 of the Indian 
     Land Consolidation Act (25 U.S.C. 2206) is amended by 
     striking subsection (b) and inserting the following:
       ``(b) Nontestamentary Disposition.--
       ``(1) Rules of descent.--Subject to any applicable Federal 
     law relating to the devise or descent of trust or restricted 
     property, any interest in trust or restricted property, 
     including personal property, that is not disposed of by a 
     valid will--
       ``(A) shall descend according to a tribal probate code that 
     is approved in accordance with section 206; or
       ``(B) in the case of an interest in trust or restricted 
     property to which such a code does not apply, shall descend 
     in accordance with--
       ``(i) paragraphs (2) through (4); and
       ``(ii) other applicable Federal law.
       ``(2) Rules governing descent of estate.--
       ``(A) Surviving spouse.--If there is a surviving spouse of 
     the decedent, such spouse shall receive trust and restricted 
     property in the estate as follows:
       ``(i) If the decedent is survived by an heir described in 
     subparagraph (B) (i), (ii), (iii), or (iv), the surviving 
     spouse shall receive \1/3\ of the trust or restricted 
     personal property of the decedent and a life estate without 
     regard to waste in the interests in trust or restricted lands 
     of the decedent.
       ``(ii) If there are no heirs described in subparagraph (B) 
     (i), (ii), (iii), or (iv), the surviving spouse shall receive 
     all of the trust or restricted personal property of the 
     decedent and a life estate without regard to waste in the 
     trust or restricted lands.
       ``(iii) The remainder shall pass as set forth in 
     subparagraph (B).
       ``(B) Indian heirs.--Where there is no surviving spouse of 
     the decedent, or there is a remainder pursuant to 
     subparagraph (A), the estate or remainder of the decedent 
     shall, subject to subparagraph (A), pass as follows:
       ``(i) To the Indian children of the decedent (or if 1 or 
     more of those Indian children do not survive the decedent, 
     the Indian children of the deceased child of the decedent, by 
     right of representation, if such Indian children of the child 
     survive the decedent) in equal shares.
       ``(ii) If the property does not pass under clause (i), to 
     the surviving Indian great-grandchildren of the decedent in 
     equal shares.
       ``(iii) If the property does not pass under clause (i) or 
     (ii), to the surviving Indian brothers and sisters who are 
     full siblings of the decedent or who are half-siblings by 
     blood and not by marriage, in equal shares.
       ``(iv) If the property does not pass under clause (i), 
     (ii), or (iii), to the Indian parent or parents of the 
     decedent in equal shares.
       ``(v) If the property does not pass under clause (i), (ii), 
     (iii), or (iv), to the Indian tribe with jurisdiction over 
     the interests in trust or restricted lands;

     except that notwithstanding clause (v), an Indian co-owner 
     (including the Indian tribe referred to in clause (v)) of a 
     parcel of trust or restricted land may acquire an interest 
     that would otherwise descend under that clause by paying into 
     the estate of the decedent, before the close of the probate 
     of the estate, the fair market value of the interest in the 
     land; if more than 1 Indian co-owner offers to pay for such 
     interest, the highest bidder shall acquire the interest.
       ``(C) No indian tribe.--If there is no Indian tribe with 
     jurisdiction over the interests in trust or restricted lands 
     that would otherwise descend under subparagraph (B)(v), then 
     such interests shall be divided equally among co-owners of 
     trust or restricted interests in the parcel; if there are no 
     such co-owners, then the Secretary shall accumulate and hold 
     such interests in trust or restricted status for the Indian 
     tribe or tribes from which the decedent descended.
       ``(3) Right of representation.--
       ``(A) In general.--Subject to subparagraph (B)--
       ``(i) the interests passing to children and grandchildren 
     of a decedent under paragraph (2) shall be divided into as 
     many equal shares as there are surviving children of the 
     decedent, deceased children who have died before the decedent 
     without issue, and deceased children who have died before the 
     decedent and have left grandchildren who survive the 
     decedent; and
       ``(ii) 1 share shall pass to each surviving child of the 
     decedent and 1 share shall pass equally divided among the 
     surviving children of a deceased child.
       ``(B) Exception for heirs of equal consanguinity.--
     Notwithstanding subparagraph (A), when the persons entitled 
     to take under subparagraph (B)(i) of paragraph (2) are all in 
     the same degree of consanguinity to the decedent, they shall 
     take in equal shares.
       ``(4) Special rule relating to survival.--In the case of 
     intestate succession under this subsection, if an individual 
     fails to survive the decedent by at least 120 hours, as 
     established by clear and convincing evidence--
       ``(A) the individual shall be deemed to have predeceased 
     the decedent for the purpose of intestate succession; and
       ``(B) the heirs of the decedent shall be determined in 
     accordance with this section.
       ``(5) Status of inherited interests.--A trust or restricted 
     interest in land or personal property that descends under the 
     provisions of this subsection (not including any interest in 
     land or personal property passing to a surviving spouse under 
     paragraph (2)(A)) shall continue to have the same trust or 
     restricted status in the hands of the heir as such interest 
     had immediately prior to the decedent's death.''.
       (c) Section 207(c) of the Indian Land Consolidation Act (25 
     U.S.C. 2206 (c)) is amended by striking all that follows the 
     heading, ``Joint Tenancy; Right of Survivorship'', and 
     inserting the following: ``If a testator devises interests in 
     the same parcel of trust or restricted lands to more than 1 
     person, in the absence of express language in the devise to 
     the contrary, the devise shall be presumed to create joint 
     tenancy with the right of survivorship in the interests 
     involved.''.
       (d) Rule of Construction.--Section 207 of the Indian Land 
     Consolidation Act (25 U.S.C. 2206) is amended by adding at 
     the end the following:
       ``(h) Applicable Federal Law.--
       ``(1) In general.--Any references in subsections (a) and 
     (b) to applicable Federal law include--
       ``(A) Public Law 91-627 (84 Stat. 1874);
       ``(B) Public Law 92-377 (86 Stat. 530);
       ``(C) Public Law 92-443 (86 Stat. 744);
       ``(D) Public Law 96-274 (94 Stat. 537); and
       ``(E) Public Law 98-513 (98 Stat. 2411).
       ``(2) No effect on laws.--Nothing in this section amends or 
     otherwise affects the application of any law described in 
     paragraph (1), or any other Federal law that provides for the 
     devise and descent of any trust or restricted land located on 
     a specific Indian reservation or for the devise and descent 
     of the allotted lands of a specific tribe or specific tribes.
       ``(i) Rules of Interpretation.--In the absence of a 
     contrary intent, and except as otherwise provided under this 
     Act or a tribal probate code approved by the Secretary 
     pursuant to section 206, wills shall be construed as to trust 
     and restricted land and personal property in accordance with 
     the following rules:
       ``(1) Construction that will passes all property.--A will 
     shall be construed to apply to all trust and restricted land 
     and personal property which the testator owned at his death, 
     including any such land or property acquired after the 
     execution of his will.
       ``(2) Class gifts.--
       ``(A) Terms of relationship that do not differentiate 
     relationships by blood from those by affinity, such as 
     `uncles', `aunts', `nieces' or `nephews', are construed to 
     exclude relatives by affinity. Terms of relationship that do 
     not differentiate relationships by the half blood from those 
     by the whole blood, such as `brothers', `sisters', `nieces', 
     or `nephews', are construed to include both types of 
     relationships.
       ``(B) Meaning of `heirs' and `next of kin,' etc; time of 
     ascertaining class.--A devise of trust or restricted land or 
     trust funds to the testator's or another designated person's 
     `heirs', `next of kin', `relatives', or `family' shall mean 
     those persons, including the spouse, who would be entitled to 
     take under the provisions of this Act for nontestamentary 
     disposition. The class is to be ascertained as of the date of 
     the testator's death.
       ``(C) Time for ascertaining class.--In construing a devise 
     to a class other than a class described in subparagraph (B), 
     the class shall be ascertained as of the time the devise is 
     to take effect in enjoyment. The surviving issue of any 
     member of the class who is then dead shall take by right of 
     representation the share which their deceased ancestor would 
     have taken.
       ``(3) Meaning of `die without issue' and similar phrases.--
     In any devise under this chapter, the words `die without 
     issue', `die without leaving issue', `have no issue', or 
     words of a similar import shall be construed to mean that an 
     individual had no lineal descendants in his lifetime or at 
     his death, and not that there will be no lineal descendants 
     at some future time.
       ``(4) Persons born out of wedlock.--In construing 
     provisions of this chapter relating to lapsed and void 
     devises, and in construing a devise to a person or persons 
     described by relationship to the testator or to

[[Page S12537]]

     another, a person born out of wedlock shall be considered the 
     child of the natural mother and also of the natural father.
       ``(5) Lapsed and void devises and legacies; shares not in 
     residue.--Where a devise of property that is not part of the 
     residuary estate fails or becomes void because--
       ``(A) the beneficiary has predeceased the testator;
       ``(B) the devise has been revoked by the testator; or
       ``(C) the devise has been disclaimed by the beneficiary;

     the property shall, if not otherwise expressly provided for 
     under this Act or a tribal probate code, pass under the 
     residuary clause, if any, contained in the will.
       ``(6) Lapsed and void devises and legacies; shares in 
     residue.--When a devise as described in paragraph (7) shall 
     be included in a residuary clause of the will and shall not 
     be available to the issue of the devisee, and if the 
     disposition shall not be otherwise expressly provided for by 
     a tribal probate code, it shall pass to the other residuary 
     devisees, if any, in proportion to their respective shares or 
     interests in the residue.
       ``(7) Family cemetery plot.--If a family cemetery plot 
     owned by the testator at his decease is not mentioned in the 
     decedent's will, the ownership of the plot shall descend to 
     his heirs as if he had died intestate.
       ``(8) After-born heirs.--A child in gestation at the time 
     of decedent's death will be treated as having survived the 
     decedent if the child lives at least 120 hours after its 
     birth.
       ``(9) Advancements of trust or restricted personal property 
     during lifetime; effect on distribution of estate.--
       ``(A) The trust or restricted personal property of a 
     decedent who dies intestate as to all or a portion of his or 
     her estate, given during the decedent's lifetime to an heir 
     of the decedent, shall be treated as an advancement against 
     the heir's inheritance, but only if the decedent declared in 
     a contemporaneous writing, or the heir acknowledged in 
     writing, that the gift is an advancement or is to be taken 
     into account in computing the division and distribution of 
     the decedent's intestate estate.
       ``(B) For the purposes of this section, trust or restricted 
     personal property advanced during the decedent's lifetime is 
     valued as of the time the heir came into possession or 
     enjoyment of the property or as of the time of the decedent's 
     death, whichever occurs first.
       ``(C) If the recipient of the property predeceases the 
     decedent, the property is not treated as an advancement or 
     taken into account in computing the division and distribution 
     of the decedent's intestate estate unless the decedent's 
     contemporaneous writing provides otherwise.
       ``(10) Heirs related to decedent through 2 lines; single 
     share.--A person who is related to the decedent through 2 
     lines of relationship is entitled to only a single share 
     based on the relationship that would entitle the person to 
     the larger share.
       ``(j) Heirship by Killing.--
       ``(1) `Heir by killing' defined.--As used in this 
     subsection, `heir by killing' means any person who 
     participates, either as a principal or as an accessory before 
     the fact, in the willful and unlawful killing of the 
     decedent.
       ``(2) No acquisition of property by killing.--Subject to 
     any applicable Federal law relating to the devise or descent 
     of trust or restricted property, no heir by killing shall in 
     any way acquire any interests in trust or restricted property 
     as the result of the death of the decedent, but such property 
     shall pass in accordance with this subsection.
       ``(3) Descent, distribution, and right of survivorship.--
     The heir by killing shall be deemed to have predeceased the 
     decedent as to decedent's interests in trust or restricted 
     property which would have passed from the decedent or his 
     estate to the heir by killing--
       ``(A) under intestate succession under this chapter;
       ``(B) under a tribal probate code, unless otherwise 
     provided for;
       ``(C) as the surviving spouse;
       ``(D) by devise;
       ``(E) as a reversion or a vested remainder;
       ``(F) as a survivorship interest; and
       ``(G) as a contingent remainder or executory or other 
     future interest.
       ``(4) Joint tenants, joint owners, and joint obligees.--
       ``(A) Any trust or restricted land or personal property 
     held by only the heir by killing and the decedent as joint 
     tenants, joint owners, or joint obligees shall pass upon the 
     death of the decedent to his or her estate, as if the heir by 
     killing had predeceased the decedent.
       ``(B) As to trust or restricted property held jointly by 3 
     or more persons, including both the heir by killing and the 
     decedent, any income which would have accrued to the heir by 
     killing as a result of the death of the decedent shall pass 
     to the estate of the decedent as if the heir by killing had 
     predeceased the decedent and any surviving joint tenants.
       ``(C) Notwithstanding any other provision of this 
     subsection, the decedent's interest in trust or restricted 
     property that is held in a joint tenancy with the right of 
     survivorship shall be severed from the joint tenancy as 
     though the property held in the joint tenancy were to be 
     severed and distributed equally among the joint tenants and 
     the decedent's interest shall pass to his estate; the 
     remainder of the interests shall remain in joint tenancy with 
     right of survivorship among the surviving joint tenants.
       ``(5) Life estate for the life of another.--If the estate 
     is held by a third person whose possession expires upon the 
     death of the decedent, it shall remain in such person's hands 
     for the period of the life expectancy of the decedent.
       ``(6) Preadjudication rule.--
       ``(A) In general.--If a person has been charged, whether by 
     indictment, information, or otherwise by the United States, a 
     tribe, or any State, with voluntary manslaughter or homicide 
     in connection with a decedent's death, then any and all trust 
     or restricted land or personal property that would otherwise 
     pass to that person from the decedent's estate shall not pass 
     or be distributed by the Secretary until the charges have 
     been resolved in accordance with the provisions of this 
     paragraph.
       ``(B) Dismissal or withdrawal.--Upon dismissal or 
     withdrawal of the charge, or upon a verdict of not guilty, 
     such land and funds shall pass as if no charge had been filed 
     or made.
       ``(C) Conviction.--Upon conviction of such person, the 
     trust and restricted land and personal property in the estate 
     shall pass in accordance with this subsection.
       ``(7) Broad construction; policy of subsection.--This 
     subsection shall not be considered penal in nature, but shall 
     be construed broadly in order to effect the policy that no 
     person shall be allowed to profit by his own wrong, wherever 
     committed.
       ``(k) General Rules Governing Probate.--
       ``(1) Scope.--The provisions of this subsection shall apply 
     only to estates that are subject to probate under the 
     provisions of subsections (a) and (b).
       ``(2) Pretermitted spouses and children.--
       ``(A) Spouses.--
       ``(i) In general.--Except as provided in clause (ii), if 
     the surviving spouse of a testator married the testator after 
     the testator executed the will of the testator, the surviving 
     spouse shall receive the intestate share in trust or 
     restricted land that the spouse would have received if the 
     testator had died intestate.
       ``(ii) Exception.--Clause (i) shall not apply to an 
     interest in trust or restricted land where--

       ``(I) the will of a testator is executed before the date of 
     enactment of this subparagraph;
       ``(II)(aa) the spouse of a testator is a non-Indian; and
       ``(bb) the testator devised the interests in trust or 
     restricted land of the testator to 1 or more Indians;
       ``(III) it appears, based on an examination of the will or 
     other evidence, that the will was made in contemplation of 
     the marriage of the testator to the surviving spouse;
       ``(IV) the will expresses the intention that the will is to 
     be effective notwithstanding any subsequent marriage; or
       ``(V)(aa) the testator provided for the spouse by a 
     transfer of funds or property outside the will; and
       ``(bb) an intent that the transfer be in lieu of a 
     testamentary provision is demonstrated by statements of the 
     testator or through a reasonable inference based on the 
     amount of the transfer or other evidence.

       ``(iii) Spouses married at the time of the will.--Should 
     the surviving spouse of the testator be omitted from the will 
     of the testator, the surviving spouse shall be treated, for 
     purposes of trust or restricted land or personal property in 
     the testator's estate, as though there was no will under the 
     provisions of section 207(b)(2)(A) if--

       ``(I) the testator and surviving spouse were continuously 
     married without legal separation for the 10-year period 
     preceding the decedent's death;
       ``(II) the testator and surviving spouse have a surviving 
     child who is the child of the testator;
       ``(III) the surviving spouse has made substantial payments 
     on or improvements to the trust or restricted land in such 
     estate; or
       ``(IV) the surviving spouse is under a binding obligation 
     to continue making loan payments for the trust or restricted 
     land for a substantial period of time;

     except that if there is evidence that the testator adequately 
     provided for the surviving spouse and any minor children by a 
     transfer of funds or property outside of the will, this 
     clause shall not apply.
       ``(iv) Defined terms.--The terms `substantial payments or 
     improvements' and `substantial period of time' as used in 
     subparagraph (A)(iii) (III) and (IV) shall have the meanings 
     given to them in the regulations adopted by the Secretary 
     under the provisions of this Act.
       ``(B) Children.--
       ``(i) In general.--If a testator executed the will of the 
     testator before the birth or adoption of 1 or more children 
     of the testator, and the omission of the children from the 
     will is a product of inadvertence rather than an intentional 
     omission, the children shall share in the intestate interests 
     of the decedent in trust or restricted land as if the 
     decedent had died intestate.
       ``(ii) Adopted heirs.--Any person recognized as an heir by 
     virtue of adoption under the Act of July 8, 1940 (25 U.S.C. 
     372a), shall be treated as the child of a decedent under this 
     subsection.
       ``(iii) Adopted-out children.--

       ``(I) In general.--For purposes of this Act, an adopted 
     person shall not be considered the child or issue of his 
     natural parents, except in distributing the estate of a 
     natural

[[Page S12538]]

     kin, other than the natural parent, who has maintained a 
     family relationship with the adopted person. If a natural 
     parent shall have married the adopting parent, the adopted 
     person for purposes of inheritance by, from and through him 
     shall also be considered the issue of such natural parent.
       ``(II) Eligible heir pursuant to other federal law or 
     tribal law.--Notwithstanding the provisions of subparagraph 
     (B)(iii)(I), other Federal laws and laws of the Indian tribe 
     with jurisdiction over the trust or restricted land may 
     otherwise define the inheritance rights of adopted-out 
     children.

       ``(3) Divorce.--
       ``(A) Surviving spouse.--
       ``(i) In general.--An individual who is divorced from a 
     decedent, or whose marriage to the decedent has been 
     annulled, shall not be considered to be a surviving spouse 
     unless, by virtue of a subsequent marriage, the individual is 
     married to the decedent at the time of death of the decedent.
       ``(ii) Separation.--A decree of separation that does not 
     dissolve a marriage, and terminate the status of husband and 
     wife, shall not be considered a divorce for the purpose of 
     this subsection.
       ``(iii) No effect on adjudications.--Nothing in clause (i) 
     prevents an entity responsible for adjudicating an interest 
     in trust or restricted land from giving effect to a property 
     right settlement if 1 of the parties to the settlement dies 
     before the issuance of a final decree dissolving the marriage 
     of the parties to the property settlement.
       ``(B) Effect of subsequent divorce on a will or devise.--
       ``(i) In general.--If, after executing a will, a testator 
     is divorced or the marriage of the testator is annulled, as 
     of the effective date of the divorce or annulment, any 
     disposition of interests in trust or restricted land made by 
     the will to the former spouse of the testator shall be 
     considered to be revoked unless the will expressly provides 
     otherwise.
       ``(ii) Property.--Property that is prevented from passing 
     to a former spouse of a decedent under clause (i) shall pass 
     as if the former spouse failed to survive the decedent.
       ``(iii) Provisions of wills.--Any provision of a will that 
     is considered to be revoked solely by operation of this 
     subparagraph shall be revived by the remarriage of a testator 
     to the former spouse of the testator.
       ``(4) Notice.--
       ``(A) In general.--To the maximum extent practicable, the 
     Secretary shall notify each owner of trust and restricted 
     land of the provisions of this Act.
       ``(B) Combined notices.--The notice under subparagraph (A) 
     may, at the discretion of the Secretary, be provided with the 
     notice required under section 207(g).''.

     SEC. 4. PARTITION OF HIGHLY FRACTIONATED INDIAN LANDS.

       Section 205 of the Indian Land Consolidation Act (25 U.S.C. 
     2204) is amended by adding at the end the following:
       ``(c) Partition of Highly Fractionated Indian Lands.--
       ``(1) Applicability.--This subsection shall be applicable 
     only to parcels of land (including surface and subsurface 
     interests, except with respect to a subsurface interest that 
     has been severed from the surface interest, in which case 
     this subsection shall apply only to the surface interest) 
     which the Secretary has determined, pursuant to paragraph 
     (2)(B), to be parcels of highly fractionated Indian land.
       ``(2) Requirements.--Subject to section 223 of this Act, 
     but notwithstanding any other provision of law, the Secretary 
     shall ensure that each partition action meets the following 
     requirements:
       ``(A) Request.--The Secretary shall commence a process for 
     partitioning a parcel of land by sale in accordance with the 
     provisions of this subsection upon receipt of an application 
     by--
       ``(i) the Indian tribe with jurisdiction over the subject 
     land that owns an undivided interest in the parcel of land; 
     or
       ``(ii) any person owning an undivided trust or restricted 
     interest in the parcel of land.
       ``(B) Determination.--Upon receipt of an application 
     pursuant to subparagraph (A), the Secretary shall determine 
     whether the subject parcel meets the requirements set forth 
     in section 202(6) (25 U.S.C. 2201(6)) to be classified as a 
     parcel of highly fractionated Indian land.
       ``(C) Consent requirements.--A parcel of land may be 
     partitioned under this subsection only with the written 
     consent of--
       ``(i) the Indian tribe with jurisdiction over the subject 
     land if such Indian tribe owns an undivided interest in the 
     parcel;
       ``(ii) any owner who, for the 3-year period immediately 
     preceding the date on which the Secretary receives the 
     application, has--

       ``(I) continuously maintained a bona fide residence on the 
     parcel; or
       ``(II) continuously operated a bona fide farm, ranch, or 
     other business on the parcel; and

       ``(iii) the owners of at least 50 percent of the undivided 
     interests in the parcel if, based on the final appraisal 
     prepared pursuant to subparagraph (F), the Secretary 
     determines that any person's undivided trust or restricted 
     interest in the parcel has a value in excess of $1,000, 
     except that the Secretary may consent on behalf of 
     undetermined heirs, minors, and legal incompetents having no 
     legal guardian, and missing owners or owners whose 
     whereabouts are unknown but only after a search for such 
     owners has been completed in accordance with the provisions 
     of this subsection.
       ``(D) Preliminary appraisal.--After the Secretary has 
     determined that the subject parcel is a parcel of highly 
     fractionated Indian land pursuant to subparagraph (B), the 
     Secretary shall cause a preliminary appraisal of the subject 
     parcel to be made.
       ``(E) Notice to owners on completion of preliminary 
     appraisal.--Upon completion of the preliminary appraisal, the 
     Secretary shall give written notice of the requested 
     partition and preliminary appraisal to all owners of 
     undivided interests in the parcel, in accordance with the 
     following requirements:
       ``(i) Contents of notice.--The notice required by this 
     subsection shall state--

       ``(I) that a proceeding to partition the parcel of land by 
     sale has been commenced;
       ``(II) the legal description of the subject parcel;
       ``(III) the owner's ownership interest in the subject 
     parcel;
       ``(IV) the results of the preliminary appraisal;
       ``(V) the owner's right to request a copy of the 
     preliminary appraisal;
       ``(VI) the owner's right to comment on the proposed 
     partition and the preliminary appraisal;
       ``(VII) the date by which the owner's comments must be 
     received, which shall not be less than 60 days after the date 
     that the notice is mailed or published under paragraph (2); 
     and
       ``(VIII) the address for requesting copies of the 
     preliminary appraisal and for submitting written comments.

       ``(ii) Manner of service.--

       ``(I) Service by mail.--The Secretary shall attempt to 
     provide all owners of interests in the subject parcel with 
     actual notice of the partition proceeding by mailing a copy 
     of the written notice described in clause (i) by first class 
     mail to each such owner at the owner's last known address. In 
     the event the written notice to an owner is returned 
     undelivered, the Secretary shall, in accordance with 
     regulations adopted to implement the provisions of this 
     section, attempt to obtain a current address for such owner 
     by inquiring with--

       ``(aa) the owner's relatives, if any are known;
       ``(bb) the Indian tribe of which the owner is a member; and
       ``(cc) the Indian tribe with jurisdiction over the subject 
     parcel.

       ``(II) Service by publication.--In the event that the 
     Secretary is unable to serve the notice by mail pursuant to 
     subclause (II), the notice shall be served by publishing the 
     notice 2 times in a newspaper of general circulation in the 
     county or counties where the subject parcel of land is 
     located.

       ``(F) Final appraisal.--After reviewing and considering 
     comments or information submitted by any owner of an interest 
     in the parcel in response to the notice required under 
     subparagraph (E), the Secretary may--
       ``(i) modify the preliminary appraisal and, as modified, 
     determine it to be the final appraisal for the parcel; or
       ``(ii) determine that preliminary appraisal should be the 
     final appraisal for the parcel, without modifications.
       ``(G) Notice to owners on determination of final 
     appraisal.--Upon making the determination under subparagraph 
     (F) the Secretary shall provide to each owner of the parcel 
     of land and the Indian tribe with jurisdiction over the 
     subject land, written notice served in accordance with 
     subparagraph (E)(ii) stating--
       ``(i) the results of the final appraisal;
       ``(ii) the owner's right to review a copy of the appraisal 
     upon request; and
       ``(iii) that the land will be sold in accordance with 
     subparagraph (G) for not less than the final appraised value 
     subject to the consent requirements under paragraph (2)(C).
       ``(H) Sale.--Subject to the requirements of paragraph 
     (2)(C), the Secretary shall--
       ``(i) provide every owner of the parcel of land and the 
     Indian tribe with jurisdiction over the subject land with 
     notice that--

       ``(I) the decision to partition by sale is final; and
       ``(II) each owner has the right to appeal the determination 
     of the Secretary to partition the parcel of land by sale, 
     including the right to appeal the final appraisal;

       ``(ii) after providing public notice of the sale pursuant 
     to regulations adopted by the Secretary to implement this 
     subsection, offer to sell the land by competitive bid for not 
     less than the final appraised value to the highest bidder 
     from among the following eligible bidders:

       ``(I) any owner of a trust or restricted interest in the 
     parcel being sold;
       ``(II) the Indian tribe, if any, with jurisdiction over the 
     parcel being sold; and
       ``(III) any member of the Indian tribe described in 
     subclause (II); and

       ``(iii) if no bidder described in clause (ii) presents a 
     bid that equals or exceeds the appraised value, provide 
     notice to the owners of the parcel of land and terminate the 
     partition process.
       ``(I) Decision not to sell.--If the required owners do not 
     consent to the partition by sale of the parcel of land, in 
     accordance with paragraph (2)(C), by a date established by 
     the Secretary, the Secretary shall provide each Indian tribe 
     with jurisdiction over the subject land and each owner notice 
     of that fact.
       ``(3) Enforcement.--
       ``(A) In general.--If a partition is approved under this 
     subsection and an owner of an interest in the parcel of land 
     refuses to surrender possession in accordance with the 
     partition decision, or refuses to execute any

[[Page S12539]]

     conveyance necessary to implement the partition, then any 
     affected owner or the United States may--
       ``(i) commence a civil action in the United States district 
     court for the district in which the parcel of land is 
     located; and
       ``(ii) request that the court issue an appropriate order 
     for the partition of the land in kind or by sale.
       ``(B) Federal role.--With respect to any civil action 
     brought under subparagraph (A)--
       ``(i) the United States--

       ``(I) shall receive notice of the civil action; and
       ``(II) may be a party to the civil action; and

       ``(ii) the civil action shall not be dismissed, and no 
     relief requested shall be denied, on the ground that the 
     civil action is 1 against the United States or that the 
     United States is an indispensable party.
       ``(4) Regulations.--The Secretary is authorized to adopt 
     such regulations as may be necessary to implement the 
     provisions of this subsection.''.

     SEC. 5. OWNER-MANAGED INTERESTS.

       The Indian Land Consolidation Act (25 U.S.C. 2201 et seq.) 
     is amended by adding at the end the following:

     ``SEC. 221. OWNER-MANAGED INTERESTS.

       ``(a) Purpose.--The purpose of this section is to provide a 
     means for the co-owners of trust or restricted interests in a 
     parcel of land to enter into surface leases of such parcel 
     without approval of the Secretary.
       ``(b) Mineral Interests.--Nothing in this section shall be 
     construed to limit or otherwise affect the application of any 
     Federal law requiring the Secretary to approve mineral leases 
     or other agreements for the development of the mineral 
     interest in trust or restricted land.
       ``(c) Owner Management.--
       ``(1) In general.--Notwithstanding any provision of Federal 
     law requiring the Secretary to approve individual Indian 
     leases or mortgages of individual Indian trust or restricted 
     land, where the owners of all of the undivided trust or 
     restricted interests in a parcel of land have submitted 
     applications to the Secretary pursuant to subsection (a), and 
     the Secretary has approved such applications under subsection 
     (d), such owners may, without further approval by the 
     Secretary, do either of the following with respect to their 
     interest in such parcel:
       ``(A) Enter into a lease of the parcel for any purpose 
     authorized by section 1 of the Act of August 9, 1955 (25 
     U.S.C. 415(a)), for an initial term not to exceed 25 years.
       ``(B) Renew any lease described in paragraph (1) for 1 
     renewal term not to exceed 25 years.
       ``(2) Rule of construction.--No such lease or renewal of a 
     lease shall be effective until the owners of all undivided 
     trust or restricted interests in the parcel have executed 
     such lease or renewal.
       ``(d) Approval of Applications for Owner Management.--
       ``(1) In general.--Subject to the provisions of paragraph 
     (2), the Secretary shall approve an application for owner 
     management submitted by a qualified applicant pursuant to 
     this section unless the Secretary has reason to believe that 
     the applicant is submitting the application as the result of 
     fraud or undue influence.
       ``(2) Commencement of owner-management status.--
     Notwithstanding the approval of 1 or more applications 
     pursuant to paragraph (1), no interest in a parcel of trust 
     or restricted land shall have owner-management status until 
     applications for all of the trust or restricted interests in 
     such parcel have been submitted and approved by the Secretary 
     pursuant to this section and in accordance with regulations 
     adopted pursuant to subsection (l).
       ``(e) Validity of Leases.--A lease of trust or restricted 
     interests in a parcel of land that is owner-managed under 
     this section that violates any requirement or limitation set 
     forth in subsection (c) shall be null and void and 
     unenforceable against the owners of such interests, or 
     against the land, the interest or the United States.
       ``(f) Lease Revenues.--The Secretary shall not be 
     responsible for the collection of, or accounting for, any 
     lease revenues accruing to any interests subject to this 
     section while such interest is in owner-management status 
     under the provisions of this section.
       ``(g) Jurisdiction.--
       ``(1) Jurisdiction unaffected by status.--The Indian tribe 
     with jurisdiction over an interest in trust or restricted 
     land that becomes owner-managed in accordance with this 
     section shall continue to have jurisdiction over the interest 
     in trust or restricted land to the same extent and in all 
     respects the tribe had prior to the interest acquiring owner 
     managed status.
       ``(2) Persons using land.--Any person holding, leasing, or 
     otherwise using such interest in land shall be considered to 
     consent to the jurisdiction of the Indian tribe with 
     jurisdiction over the interest, including such tribe's laws 
     and regulations, if any, relating to the use, and any effects 
     associated with the use, of the interest.
       ``(h) Continuation of Owner-Managed Status; Revocation.--
       ``(1) In general.--Subject to the provisions of paragraph 
     (2), after the applications of the owners of all of the trust 
     or restricted interests in a parcel of land have been 
     approved by the Secretary pursuant to subsection (d), each 
     such interest shall continue in owner-managed status under 
     this section notwithstanding any subsequent conveyance of the 
     interest in trust or restricted status to another person or 
     the subsequent descent of the interest in trust or restricted 
     status by testate or intestate succession to 1 or more heirs.
       ``(2) Revocation.--Owner-managed status of an interest may 
     be revoked upon written request of owners (including the 
     parents or legal guardians of minors or incompetent owners) 
     of all trust or restricted interests in the parcel, submitted 
     to the Secretary in accordance with regulations adopted under 
     subsection (l). The revocation shall become effective as of 
     the date on which the last of all such requests have been 
     delivered to the Secretary.
       ``(3) Effect of revocation.--Revocation of owner-managed 
     status under paragraph (2) shall not affect the validity of 
     any lease made in accordance with the provisions of this 
     section prior to the effective date of the revocation, 
     provided that, after such revocation becomes effective, the 
     Secretary shall be responsible for the collection of, and 
     accounting for, all future lease revenues accruing to the 
     trust or restricted interests in the parcel from and after 
     such effective date.
       ``(i) Defined Terms.--
       ``(1) For purposes of subsection (d)(1), the term 
     `qualified applicant' means--
       ``(A) a person over the age of 18 who owns a trust or 
     restricted interest in a parcel of land; and
       ``(B) the parent or legal guardian of a minor or 
     incompetent person who owns a trust or restricted interest in 
     a parcel of land.
       ``(2) For purposes of this section, the term `owner-managed 
     status' means, with respect to a trust or restricted 
     interest, that the interest--
       ``(A) is a trust or restricted interest in a parcel of land 
     for which applications covering all trust or restricted 
     interests in such parcel have been submitted to and approved 
     by the Secretary pursuant to subsection (d);
       ``(B) may be leased without approval of the Secretary 
     pursuant to, and in a manner that is consistent with the 
     requirements of, this section; and
       ``(C) no revocation has occurred under subsection (h)(2).
       ``(j) Secretarial Approval of Other Transactions.--Except 
     with respect to the specific lease transactions described in 
     paragraphs (1) and (2) of subsection (c), interests held in 
     owner-managed status under the provisions of this section 
     shall continue to be subject to all Federal laws requiring 
     the Secretary to approve transactions involving trust or 
     restricted land that would otherwise apply to such interests.
       ``(k) Effect of Section.--Subject to subsections (c), (f), 
     and (h), nothing in this section limits or otherwise affects 
     any authority or responsibility of the Secretary with respect 
     to an interest in trust or restricted land.
       ``(l) Regulations.--The Secretary shall promulgate such 
     regulations as are necessary to carry out this section.''.

     SEC. 6. ADDITIONAL AMENDMENTS.

       (a) In General.--The Indian Land Consolidation Act (25 
     U.S.C. 2201 et seq.) is amended--
       (1) in the second sentence of section 205(a) (25 U.S.C. 
     2204(a)), by striking ``over 50 per centum of the undivided 
     interests'' and inserting ``undivided interests equal to at 
     least 50 percent of the undivided interest'';
       ``(2) in section 205 (25 U.S.C. 2204), by adding subsection 
     (c) as follows:
       ``(c) Purchase Option at Probate.--
       ``(1) In general.--Subject to section 207(b)(2)(A) of this 
     Act (25 U.S.C. 2206(b)(2)(A)), interests in a parcel of trust 
     or restricted land in the decedent's estate may be purchased 
     at probate in accordance with the provisions of this 
     subsection.
       ``(2) Sale of interest at minimum fair market value.--
     Subject to paragraph (3), the Secretary is authorized to sell 
     trust or restricted interests subject to this subsection at 
     no less than fair market value to the highest bidder from 
     among the following eligible bidders:
       ``(A) The heirs taking by intestate succession or the 
     devisees listed in section 207(a)(1)(A).
       ``(B) All persons who own undivided trust or restricted 
     interests in the same parcel of land involved in the probate 
     proceeding.
       ``(C) The Indian tribe with jurisdiction over the interest, 
     or the Secretary on behalf of such Indian tribe.
       ``(3) Request for auction.--No auction and sale of an 
     interest in probate shall occur under this subsection 
     unless--
       ``(A) except as provided in paragraph (6), the heirs or 
     devises of such interest consent to the sale; and
       ``(B) a person or the Indian tribe eligible to bid on the 
     interest under paragraph (2) submits a request for the 
     auction prior to the distribution of the interest to heirs or 
     devisees of the decedent and in accordance with any 
     regulations of the Secretary.
       ``(4) Appraisal and notice.--Prior to the sale of an 
     interest pursuant to this subsection, the Secretary shall--
       (A) appraise the interest; and
       (B) publish notice of the time and place of the auction (or 
     the time and place for submitting sealed bids), a 
     description, and the appraised value, of the interest to be 
     sold.
       ``(5) Rights of surviving spouse.--Nothing in this 
     subsection shall be construed to diminish or otherwise affect 
     the rights of a surviving spouse under section 207(b)(2)(A).

[[Page S12540]]

       ``(6) Highly fractionated indian lands.--Notwithstanding 
     paragraph (3)(A), the consent of an heir shall not be 
     required for the auction and sale of an interest at probate 
     under this subsection if--
       ``(A) the interest is passing by intestate succession; and
       ``(B) prior to the auction the Secretary determines that 
     the interest involved is an interest in a parcel of highly 
     fractionated Indian land.
       ``(7) Regulations.--The Secretary shall promulgate 
     regulations to implement the provisions of this 
     subsection.'';
       (3) in section 206 (25 U.S.C. 2205)--
       (A) in subsection (a), by striking paragraph (3) and 
     inserting the following:
       ``(3) Tribal probate codes.--Except as provided in any 
     applicable Federal law, the Secretary shall not approve a 
     tribal probate code, or an amendment to such a code, that 
     prohibits the devise of an interest in trust or restricted 
     land by--
       ``(A) an Indian lineal descendant of the original allottee; 
     or
       ``(B) an Indian who is not a member of the Indian tribe 
     with jurisdiction over such an interest;

     unless the code provides for--
       ``(i) the renouncing of interests to eligible devisees in 
     accordance with the code;
       ``(ii) the opportunity for a devisee who is the spouse or 
     lineal descendant of a testator to reserve a life estate 
     without regard to waste; and
       ``(iii) payment of fair market value in the manner 
     prescribed under subsection (c)(2).''; and
       (B) in subsection (c)--
       (i) in paragraph (1)--

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

       ``(1) Authority.--
       ``(A) In general.--'';

       (II) in the first sentence of subparagraph (A) (as 
     redesignated by clause (i)), by striking ``section 
     207(a)(6)(A) of this title'' and inserting ``section 
     207(a)(2)(A)(ii) of this title''; and
       (III) by striking the last sentence and inserting the 
     following:

       ``(B) Transfer.--The Secretary shall transfer payments 
     received under subparagraph (A) to any person or persons who 
     would have received an interest in land if the interest had 
     not been acquired by the Indian tribe in accordance with this 
     paragraph.''; and
       (ii) in paragraph (2)--

       (I) in subparagraph (A)--

       (aa) by striking the subparagraph heading and all that 
     follows through ``Paragraph (1) shall not apply'' and 
     inserting the following:
       ``(A) Inapplicability to certain interests.--
       ``(i) In general.--Paragraph (1) shall not apply'';
       (bb) in clause (i) (as redesignated by item (aa)), by 
     striking ``if, while'' and inserting the following: ``if--

       ``(I) while'';

       (cc) by striking the period at the end and inserting ``; 
     or''; and
       (dd) by adding at the end the following:

       ``(II)--

       ``(aa) the interest is part of a family farm that is 
     devised to a member of the family of the decedent; and
       ``(bb) the devisee agrees that the Indian tribe with 
     jurisdiction over the land will have the opportunity to 
     acquire the interest for fair market value if the interest is 
     offered for sale to an entity that is not a member of the 
     family of the owner of the land.
       ``(ii) Recording of interest.--On request by an Indian 
     tribe described in clause (i)(II)(bb), a restriction relating 
     to the acquisition by the Indian tribe of an interest in a 
     family farm involved shall be recorded as part of the deed 
     relating to the interest involved.
       ``(iii) Mortgage and foreclosure.--Nothing in clause 
     (i)(II) prevents or limits the ability of an owner of land to 
     which that clause applies to mortgage the land or limit the 
     right of the entity holding such a mortgage to foreclose or 
     otherwise enforce such a mortgage agreement in accordance 
     with applicable law.
       ``(iv) Definition of `member of the family'.--In this 
     paragraph, the term `member of the family', with respect to a 
     decedent or landowner, means--

       ``(I) a lineal descendant of a decedent or landowner;
       ``(II) a lineal descendant of the grandparent of a decedent 
     or landowner;
       ``(III) the spouse of a descendant or landowner described 
     in subclause (I) or (II); and
       ``(IV) the spouse of a decedent or landowner.'';

       (4) in subparagraph (B), by striking ``subparagraph (A)'' 
     and all that follows through ``207(a)(6)(B) of this title'' 
     and inserting ``paragraph (1)'';
       (5) in section 207 (25 U.S.C. 2206), subsection (g)(5), by 
     striking ``this section'' and inserting ``subsections (a) and 
     (b)'';
       (6) in section 213 (25 U.S.C. 2212)--
       (A) by striking the section heading and inserting the 
     following:

     ``SEC. 2212. FRACTIONAL INTEREST ACQUISITION PROGRAM.'';

       (B) in subsection (a)--
       (i) by striking ``(2) Authority of Secretary.--'' and all 
     that follows through ``the Secretary shall submit'' and 
     inserting the following:
       ``(2) Authority of secretary.--The Secretary shall 
     submit''; and
       (ii) by striking ``whether the program to acquire 
     fractional interests should be extended or altered to make 
     resources'' and inserting ``how the fractional interest 
     acquisition program should be enhanced to increase the 
     resources made'';
       (C) in subsection (b), by striking paragraph (4) and 
     inserting the following:
       ``(4) shall minimize the administrative costs associated 
     with the land acquisition program through the use of policies 
     and procedures designed to accommodate the voluntary sale of 
     interests under the pilot program under this section, 
     notwithstanding the existence of any otherwise applicable 
     policy, procedure, or regulation, through the elimination of 
     duplicate--
       ``(A) conveyance documents;
       ``(B) administrative proceedings; and
       ``(C) transactions.''.
       (D) in subsection (c)--
       (i) in paragraph (1)--

       (I) in subparagraph (A), by striking ``at least 5 percent 
     of the'' and inserting in its place ``an'';
       (II) in subparagraph (A), by inserting ``in such parcel'' 
     following ``the Secretary shall convey an interest'';
       (III) in subparagraph (A), by striking ``landowner upon 
     payment'' and all that follows and inserting the following: 
     ``landowner--

       ``(i) on payment by the Indian landowner of the amount paid 
     for the interest by the Secretary; or
       ``(ii) if--

       ``(I) the Indian referred to in this subparagraph provides 
     assurances that the purchase price will be paid by pledging 
     revenue from any source, including trust resources; and
       ``(II) the Secretary determines that the purchase price 
     will be paid in a timely and efficient manner.''; and
       (IV) in subparagraph (B), by inserting before the period at 
     the end the following: ``unless the interest is subject to a 
     foreclosure of a mortgage in accordance with the Act of March 
     29, 1956 (25 U.S.C. 483a)''; and

       (ii) in paragraph (3), by striking ``10 percent or more of 
     the undivided interests'' and inserting ``an undivided 
     interest'';
       (7) in section 214 (25 U.S.C. 2213), by striking subsection 
     (b) and inserting the following:
       ``(b) Application of Revenue From Acquired Interests to 
     Land Consolidation Program.--
       ``(1) In general.--The Secretary shall have a lien on any 
     revenue accruing to an interest described in subsection (a) 
     until the Secretary provides for the removal of the lien 
     under paragraph (3), (4), or (5).
       ``(2) Requirements.--
       ``(A) In general.--Until the Secretary removes a lien from 
     an interest in land under paragraph (1)--
       ``(i) any lease, resource sale contract, right-of-way, or 
     other document evidencing a transaction affecting the 
     interest shall contain a clause providing that all revenue 
     derived from the interest shall be paid to the Secretary; and
       ``(ii) any revenue derived from any interest acquired by 
     the Secretary in accordance with section 213 shall be 
     deposited in the fund created under section 216.
       ``(B) Approval of transactions.--Notwithstanding section 16 
     of the Act of June 18, 1934 (commonly known as the `Indian 
     Reorganization Act') (25 U.S.C. 476), or any other provision 
     of law, until the Secretary removes a lien from an interest 
     in land under paragraph (1), the Secretary may approve a 
     transaction covered under this section on behalf of an Indian 
     tribe.
       ``(3) Removal of liens after findings.--The Secretary may 
     remove a lien referred to in paragraph (1) if the Secretary 
     makes a finding that--
       ``(A) the costs of administering the interest from which 
     revenue accrues under the lien will equal or exceed the 
     projected revenues for the parcel of land involved;
       ``(B) in the discretion of the Secretary, it will take an 
     unreasonable period of time for the parcel of land to 
     generate revenue that equals the purchase price paid for the 
     interest; or
       ``(C) a subsequent decrease in the value of land or 
     commodities associated with the parcel of land make it likely 
     that the interest will be unable to generate revenue that 
     equals the purchase price paid for the interest in a 
     reasonable time.
       ``(4) Removal of liens upon payment into the acquisition 
     fund.--The Secretary shall remove a lien referred to in 
     paragraph (1) upon payment of an amount equal to the purchase 
     price of that interest in land into the Acquisition Fund 
     created under section 2215 of this title, except where the 
     tribe with jurisdiction over such interest in land authorizes 
     the Secretary to continue the lien in order to generate 
     additional acquisition funds.
       ``(5) Other removal of liens.--In accordance with 
     regulations to be promulgated by the Secretary, and in 
     consultation with tribal governments and other entities 
     described in section 213(b)(3), the Secretary shall 
     periodically remove liens referred to in paragraph (1) from 
     interests in land acquired by the Secretary.'';
       (8) in section 216 (25 U.S.C. 2215)--
       (A) in subsection (a), by striking paragraph (2) and 
     inserting the following:
       ``(2) collect all revenues received from the lease, permit, 
     or sale of resources from interests acquired under section 
     213 or paid by Indian landowners under section 213.''; and
       (B) in subsection (b)--
       (i) in paragraph (1)--

[[Page S12541]]

       (I) in the matter preceding subparagraph (A), by striking 
     ``Subject to paragraph (2), all'' and inserting ``All'';
       (II) in subparagraph (A), by striking ``and'' at the end;
       (III) in subparagraph (B), by striking the period at the 
     end and inserting ``; and''; and
       (IV) by adding at the end the following:

       ``(C) be used to acquire undivided interests on the 
     reservation from which the income was derived.''; and
       (ii) by striking paragraph (2) and inserting the following:
       ``(2) Use of funds.--The Secretary may use the revenue 
     deposited in the Acquisition Fund under paragraph (1) to 
     acquire some or all of the undivided interests in any parcels 
     of land in accordance with section 205.'';
       (9) in section 217 (25 U.S.C. 2216)--
       (A) in subsection (b)(1) by striking subparagraph (B) and 
     inserting a new subparagraph (B) as follows--
       ``(B) Waiver of requirement.--The requirement for an 
     estimate of value under subparagraph (A) may be waived in 
     writing by an owner of an interest in trust or restricted 
     land either selling, exchanging, or conveying by gift deed 
     for no or nominal consideration such interest--
       ``(i) to an Indian person who is the owner's spouse, 
     brother, sister, lineal ancestor, lineal descendant, or 
     collateral heir; or
       ``(ii) to an Indian co-owner or to a tribe with 
     jurisdiction over the subject parcel of land, where the 
     grantor owns a fractional interest that represents 5 percent 
     or less of the parcel.''.
       (B) in subsection (e), by striking the matter preceding 
     paragraph (1), and inserting ``Notwithstanding any other 
     provision of law, the names and mailing addresses of the 
     owners of any interest in trust or restricted lands, and 
     information on the location of the parcel and the percentage 
     of undivided interest owned by each individual shall, upon 
     written request, be made available to--'';
       (C) in subsection (e)(1), by striking ``Indian'';
       (D) in subsection (e)(3), by striking ``prospective 
     applicants for the leasing, use, or consolidation of'' and 
     insert ``any person that is leasing, using, or consolidating, 
     or is applying to lease, use, or consolidate,''; and
       (E) by striking subsection (f) and inserting the following:
       ``(f) Purchase of Land by Indian Tribe.--
       ``(1) In general.--Except as provided in paragraph (2), 
     before the Secretary approves an application to terminate the 
     trust status or remove the restrictions on alienation from a 
     parcel of trust or restricted land, the Indian tribe with 
     jurisdiction over the parcel shall have the opportunity--
       ``(A) to match any offer contained in the application; or
       ``(B) in a case in which there is no purchase price 
     offered, to acquire the interest in the parcel by paying the 
     fair market value of the interest.
       ``(2) Exception for family farms.--
       ``(A) In general.--Paragraph (1) shall not apply to a 
     parcel of trust or restricted land that is part of a family 
     farm that is conveyed to a member of the family of a 
     landowner (as defined in section 206(c)(2)(A)(iv)) if the 
     conveyance requires that in the event that the interest is 
     offered for sale to an entity that is not a member of the 
     family of the landowner, the Indian tribe with jurisdiction 
     over the land shall be afforded the opportunity to purchase 
     the interest pursuant to paragraph (1).
       ``(B) Applicability of other provision.--Section 
     206(c)(2)(A) shall apply with respect to the recording and 
     mortgaging of any trust or restricted land referred to in 
     subparagraph (A).''; and
       (10) in section 219(b)(1)(A) (25 U.S.C. 2218(b)(1)(A)), by 
     striking ``100'' and inserting ``90''.
       (b) Definitions.--Section 202 of the Indian Land 
     Consolidation Act (25 U.S.C. 2201) is amended--
       (1) by striking paragraph (2) and inserting the following:
       ``(2) `Indian' means--
       ``(A) any person who is a member of any Indian tribe, is 
     eligible to become a member of any Indian tribe, or is an 
     owner (as of the date of enactment of the American Indian 
     Probate Reform Act of 2003) of an interest in trust or 
     restricted land;
       ``(B) any person meeting the definition of Indian under the 
     Indian Reorganization Act (25 U.S.C. 479) and the regulations 
     promulgated thereunder;
       ``(C) any person not included in subparagraph (A) or (B) 
     who is a lineal descendant within 3 degrees of a person 
     described in subparagraph (A);
       ``(D) an owner of a trust or restricted interest in a 
     parcel of land for purposes of inheriting another trust or 
     restricted interest in such parcel; and
       ``(E) with respect to the ownership, devise, or descent of 
     trust or restricted land in the State of California, any 
     person who meets the definition of `Indians of California' 
     contained in the first section of the Act of May 18, 1928 (25 
     U.S.C. 651), until otherwise provided by Congress in 
     accordance with section 809(b) of the Indian Health Care 
     Improvement Act (25 U.S.C. 1679)(b)).''; and
       (2) by adding at the end the following:
       ``(6) `Parcel of highly fractionated Indian land' means a 
     parcel of land that the Secretary, pursuant to authority 
     under a provision of this Act, determines to have at the time 
     of the determination--
       ``(A)(i) 100 or more but less than 200 co-owners of 
     undivided trust or restricted interests; and
       ``(ii) no undivided trust or restricted interest owned by 
     any 1 person which represents more than 2 percent of the 
     total undivided ownership of the parcel; or
       ``(B)(i) 200 or more but less than 350 co-owners of 
     undivided trust or restricted interests; and
       ``(ii) no undivided trust or restricted interest owned by 
     any 1 person which represents more than 5 percent of the 
     total undivided ownership of the parcel; or
       ``(C) 350 or more co-owners of undivided trust or 
     restricted interests.
       ``(7) `Person' means a natural person.''.
       (c) Issuance of Patents.--Section 5 of the Act of February 
     8, 1887 (25 U.S.C. 348), is amended by striking the second 
     proviso and inserting the following: `Provided, That the 
     rules of intestate succession under the Indian Land 
     Consolidation Act (25 U.S.C. 2201 et seq.) (including a 
     tribal probate code approved under that Act or regulations 
     promulgated under that Act) shall apply to that land for 
     which patents have been executed and delivered:''.
       (d) Transfers of Restricted Indian Land.--Section 4 of the 
     Act of June 18, 1934 (25 U.S.C. 464), is amended in the first 
     proviso by--
       (1) striking ``, in accordance with'' and all that follows 
     through ``or in which the subject matter of the corporation 
     is located,'';
       (2) striking ``, except as provided by the Indian Land 
     Consolidation Act'' and all that follows through the colon; 
     and
       (3) inserting ``in accordance with the Indian Land 
     Consolidation Act (25 U.S.C. 2201 et seq.) (including a 
     tribal probate code approved under that Act or regulations 
     promulgated under that Act):''.
       (e) Estate Planning.--
       (1) Conduct of activities.--Section 207(f)(1) of the Indian 
     Land Consolidation Act (25 U.S.C. 2206) is amended by 
     striking paragraph (1) and inserting the following--
       ``(1) In general.--
       ``(A) The activities conducted under this subsection shall 
     be conducted in accordance with any applicable--
       ``(i) tribal probate code; or
       ``(ii) tribal land consolidation plan.
       ``(B) The Secretary shall provide estate planning 
     assistance in accordance with this subsection, to the extent 
     amounts are appropriated for such purpose.''.
       (2) Requirements.--Section 207(f) of the Indian Land 
     Consolidation Act (25 U.S.C. 2206(f)) is amended by striking 
     ``and'' at the end of subparagraph (A), redesignating 
     subparagraph (B) as subparagraph (D), and adding the 
     following--
       ``(B) dramatically increase the use of wills and other 
     methods of devise among Indian landowners;
       ``(C) substantially reduce the quantity and complexity of 
     Indian estates that pass intestate through the probate 
     process, while protecting the rights and interests of Indian 
     landowners; and''; and
       (3) by striking ``(3) Contracts.--'' and inserting the 
     following--
       ``(3) Indian civil legal assistance grants.--In carrying 
     out this section, the Secretary shall award grants to 
     nonprofit entities, as defined under section 501(c)(3) of the 
     Internal Revenue Code of 1986, which provide legal assistance 
     services for Indian tribes, individual owners of interests in 
     trust or restricted lands, or Indian organizations pursuant 
     to Federal poverty guidelines which submit an application to 
     the Secretary, in such form and manner as the Secretary may 
     prescribe, for the provision of civil legal assistance to 
     such Indian tribes, individual owners, and Indian 
     organizations for the development of tribal probate codes, 
     for estate planning services or for other purposes consistent 
     with the services they provide to Indians and Indian 
     tribes.''; and
       (4) by adding at the end of section 207 (25 U.S.C. 2206) 
     the following:
       ``(k) Notification to Landowners.--
       ``(1) In general.--Not later than 2 years after the date of 
     enactment of this Act, the Secretary shall provide to each 
     Indian landowner a report that lists, with respect to each 
     tract of trust or restricted land in which the Indian 
     landowner has an interest--
       ``(A) the location of the tract of land involved;
       ``(B) the identity of each other co-owner of interests in 
     the parcel of land; and
       ``(C) the percentage of ownership of each owner of an 
     interest in the tract.
       ``(2) Statutory construction.--Nothing in this subsection 
     shall preclude any individual Indian from obtaining from the 
     Secretary, upon the request of that individual, any 
     information specified in paragraph (1) before the expiration 
     of the 2-year period specified in paragraph (1).
       ``(3) Requirements for notification.--Each notification 
     made under paragraph (1) shall include information concerning 
     estate planning and land consolidation options under the 
     provisions of this Act and other applicable Federal law, 
     including information concerning--
       ``(A) the preparation and execution of wills;
       ``(B) negotiated sales;
       ``(C) gift deeds;
       ``(D) exchanges; and
       ``(E) life estates without regard to waste.
       ``(4) Prohibition.--No individual Indian may be denied 
     access to information relating to land in which that 
     individual has an interest described in this section on the 
     basis of section 552a of title 5, United States Code 
     (commonly referred to as the `Privacy Act').

[[Page S12542]]

       ``(l) Private and Family Trusts Pilot Project.--
       ``(1) Development pilot project.--
       ``(A) The Secretary shall consult with tribes, individual 
     landowner organizations, Indian advocacy organizations, and 
     other interested parties to--
       ``(i) develop a pilot project for the creation and 
     management of private and family trusts for interests in 
     trust or restricted lands; and
       ``(ii) develop proposed rules, regulations, and guidelines 
     to implement the pilot project.
       ``(B) The pilot project shall commence on the date of 
     enactment of the American Indian Probate Reform Act of 2003 
     and shall continue for 3 years after the date of enactment of 
     this subsection.
       ``(2) Characteristics of private and family trusts.--For 
     purposes of this subsection and any proposed rules, 
     regulations, or guidelines developed under this subsection--
       ``(A) the terms `private trust' and `family trust' shall 
     both mean trusts created pursuant to this subsection for the 
     management and administration of interests in trust or 
     restricted land, held by 1 or more persons, which comprise 
     the corpus of a trust, by a private trustee subject to the 
     approval of the Secretary;
       ``(B) private and family trusts shall be created and 
     managed in furtherance of the purposes of the Indian Land 
     Consolidation Act (25 U.S.C. 2201 et seq.); and
       ``(C) private and family trusts shall not be construed to 
     impair, impede, replace, abrogate, or modify in any respect 
     the trust duties or responsibilities of the Secretary, nor 
     shall anything in this subsection or in any rules, 
     regulations, or guidelines developed under this subsection 
     enable any private or family trustee of interests in trust or 
     restricted lands to exercise any powers over such interests 
     greater than that held by the Secretary with respect to such 
     interests.
       ``(3) Report to congress.--Prior to the expiration of the 
     pilot project provided for under this subsection, the 
     Secretary shall submit a report to Congress stating--
       ``(A) a description of the Secretary's consultation with 
     Indian tribes, individual landowner associations, Indian 
     advocacy organizations, and other parties consulted with 
     regarding the development of rules, regulations, and/or 
     guidelines for the creation and management of private and 
     family trusts over interests in trust and restricted lands;
       ``(B) the feasibility of accurately tracking such private 
     and family trusts;
       ``(C) the impact that private and family trusts would have 
     with respect to the accomplishment of the goals of the Indian 
     Land Consolidation Act (25 U.S.C. 2201 et seq.); and
       ``(D) a final recommendation regarding whether to adopt the 
     creation of a permanent private and family trust program as a 
     management and consolidation measure for interests in trust 
     or restricted lands.''.

     SEC. 7. UNCLAIMED AND ABANDONED PROPERTY.

       The Indian Land Consolidation Act (25 U.S.C. 2201 et seq.) 
     (as amended by section 5) is amended by adding at the end the 
     following:

     ``SEC. 222. UNCLAIMED AND ABANDONED PROPERTY.

       ``(a) Interests Presumed Abandoned.--An undivided trust or 
     restricted interest in a parcel of land owned by a person 
     shall be presumed abandoned and subject to the provisions of 
     this section if the Secretary makes a determination that--
       ``(1) a period of 6 consecutive years next preceding such 
     determination has passed during which the person owning such 
     interest has not made any indication or expression of 
     interest in the trust or restricted interest as set forth in 
     subsection (b);
       ``(2) the person owning the trust or restricted interest 
     was, at all times during the 6-year period described in 
     paragraph (1), over the age of 18; and
       ``(3) as of the expiration of the 6-year period described 
     in paragraph (1), such parcel was a parcel of highly 
     fractionated Indian land.
       ``(b) Indicators of Owner Interest.--For purposes of 
     subsection (a), an indication or expression of an owner's 
     interest in the property shall mean the owner or any person 
     acting on behalf of the owner--
       ``(1) making a deposit to, withdrawal from, or inquiry into 
     an individual Indian money account associated with such 
     interest;
       ``(2) negotiating a Treasury check derived from such 
     interest or account;
       ``(3) providing the Secretary with a valid address; or
       ``(4) communicating with the Secretary regarding such 
     interest or account.
       ``(c) Related Property.--At the time that property is 
     presumed to be abandoned under this section, any other 
     property right accrued or accruing to the owner as a result 
     of the interest, including funds in an associated individual 
     Indian money account, that has not previously been presumed 
     abandoned under this section, also shall be presumed 
     abandoned.
       ``(d) Annual List of Property; Notice to Owners.--No later 
     than the first day of November of each year, the Secretary 
     shall prepare and distribute a list of names of persons 
     owning property presumed abandoned under this section during 
     the preceding fiscal year and provide notice to such persons 
     in accordance with the following requirements:
       ``(1) Contents of annual list.--The list shall set forth--
       ``(A) the names of all persons owning interests in land and 
     property presumed to be abandoned under this section;
       ``(B) with respect to each person named on the list, the 
     reservation, if any, and the county and State in which the 
     person's interest in land is located;
       ``(C) the reservation, if any, the city or town, county and 
     State of the person's last known address; and
       ``(D) the name, address, and telephone number of the 
     official or officials within the Department of the Interior 
     to contact for purposes of identifying persons or lands 
     included on the list.
       ``(2) Distribution of list.--The list shall be distributed 
     to all regional offices and agencies of the Bureau of Indian 
     Affairs and to all reservations where land described on this 
     list is located and shall cause the list to be published in 
     the Federal Register within 15 days after the list is 
     prepared.
       ``(3) Notice by mail.--In addition to publishing and 
     distributing the list described in paragraph (1), the 
     Secretary shall attempt to provide the persons owning such 
     trust or restricted interests with actual written notice that 
     the interest and any associated funds or property is presumed 
     abandoned under the provisions of this section. Such notice 
     shall be sent by first class mail to the owner at the owner's 
     last known address and shall include the following:
       ``(A) A legal description of the parcel of which the 
     interest is a part.
       ``(B) A description of the owner's interest.
       ``(C) A statement that the owner has not indicated or 
     expressed an interest in the trust or restricted interest for 
     a period of 6 consecutive years and that such interest, and 
     any funds in an associated individual Indian money account, 
     is presumed abandoned.
       ``(D) A statement that the interest will be appraised and 
     sold for its appraised value unless the owner responds to the 
     notice within 60 days after the notice is mailed or 
     published.
       ``(E) A statement that in the event the owner fails to 
     respond and the notice and the property is sold, the proceeds 
     of such sale and any funds in any associated individual 
     Indian money account will be deposited in an unclaimed 
     property account.
       ``(4) Search for whereabouts of owner.--If the notice 
     described in paragraph (3) is returned undelivered, the 
     Secretary shall attempt to locate the owner by--
       ``(A) searching publicly available records and Federal 
     records, including telephone and address directories and 
     using electronic search methods;
       ``(B) inquiring with--
       ``(i) the owner's relatives, if any are known;
       ``(ii) any Indian tribe of which the owner is a member; and
       ``(iii) the Indian tribe, if any, with jurisdiction over 
     the interest; and
       ``(C) if the value of the interest and any funds in an 
     associated individual Indian money account exceeds $1,000, 
     engaging an independent search firm to perform a missing 
     person search.
       ``(5) Notice by publication.--In the event that the 
     Secretary is unable to locate the owner pursuant to paragraph 
     (4), the Secretary shall publish a notice not later than 
     November 30 following the fiscal year in which the property 
     was presumed to be abandoned under this section. The notice 
     shall include the same information required for the notice 
     described in paragraph (3) and shall be--
       ``(A) published in a newspaper of general circulation on or 
     near the apparent owner's home reservation and near the last 
     known address of the owner; and
       ``(B) in a form that is likely to attract the attention of 
     the apparent owner of the property.
       ``(e) Conversion of Abandoned Interests.--If, after 2 years 
     from the date the notice is published under subsection 
     (d)(3), any such real property or interest therein remains 
     unclaimed, the Secretary shall appraise such property in a 
     manner consistent with section 215 of the Indian Land 
     Consolidation Act (25 U.S.C. 2214) and shall purchase the 
     property at its appraised value, or sell the property to an 
     Indian tribe with jurisdiction over such property or a person 
     who owns an undivided trust or restricted interest in such 
     property, by competitive bid for not less than the appraised 
     value. The Secretary shall then transfer any monetary 
     interest that the Secretary holds for the previous apparent 
     owner to the unclaimed property account described in 
     subsection (f).
       ``(f) Unclaimed Property Account.--
       ``(1) Except as otherwise provided by this section, the 
     Secretary shall promptly deposit in a special unclaimed 
     property account all funds received under this section. The 
     Secretary shall pay all claims under subsection (g) from this 
     account. The Secretary shall record the name and last known 
     address of each person appearing to be entitled to the 
     property.
       ``(2) The Secretary is authorized to use interest earned on 
     the special unclaimed property account to pay--
       ``(A) the administrative costs of conversion of real 
     property under subsection (g); and
       ``(B) costs of mailing and publication in connection with 
     abandoned property.
       ``(3) The Secretary shall retain a sufficient balance in 
     the account at all times from which to pay claims duly 
     allowed. All other funds shall be available to the Secretary 
     to use for the purposes of land consolidation pursuant to 25 
     U.S.C. 2212.
       ``(g) Claims.--

[[Page S12543]]

       ``(1) Filing of claim.--An individual, or the heirs of an 
     individual, may file a claim to recover property or the 
     proceeds of the conversion of the property on a form 
     prescribed by the Secretary.
       ``(2) Allowance or denial of claim.--Not more than 180 days 
     after a claim is filed, the Secretary shall allow or deny the 
     claim and give written notice of the decision to the 
     claimant. If the claim is denied, the Secretary shall inform 
     the claimant of the reasons for the denial and specify what 
     additional evidence is required before the claim will be 
     allowed. The claimant may then file a new claim with the 
     Secretary or maintain an action under this subsection.
       ``(3) Payment of allowed claim.--Not more than 60 days 
     after a claim is allowed, the property or the net proceeds of 
     the conversion of the property shall be delivered or paid by 
     the Secretary to the claimant, together with any interest, or 
     other increment to which the claimant is entitled under this 
     section.
       ``(4) Judicial review.--An individual aggrieved by a 
     decision of the Secretary under this subsection or whose 
     claim has not been acted upon within 180 days may, after 
     exhausting administrative remedies, seek--
       ``(A) judicial review or other appropriate relief against 
     the Secretary in a United States district court, which may 
     include an order quieting beneficial title in the name of 
     petitioner whose property was sold by the Secretary in 
     violation of this section; and
       ``(B) recover reasonable attorneys fees if he is the 
     prevailing party.
       ``(h) Voluntary Abandonment.--Any person who is an owner of 
     an interest subject to this section may, with the Secretary's 
     approval, voluntarily abandon that interest to the benefit of 
     the tribe with jurisdiction over the parcel of land or a co-
     owner of a trust or restricted interest in the same parcel of 
     land in accordance with regulations adopted pursuant to 
     subsection (j).
       ``(i) Transfer of Abandoned Interests in Land.--
       ``(1) Any interest in land acquired under subsection (e) or 
     (h) over which an Indian tribe has jurisdiction shall be held 
     in trust by the Secretary for the benefit of that tribe, 
     provided that the tribe may decline any such property in its 
     discretion, and provided that if the tribe declines or does 
     not currently own any interest within that parcel a co-owner 
     with a majority interest shall have the first right of 
     purchase of the property at the appraised price.
       ``(2) Any interest in real property acquired under 
     subsection (e) or (h) that is not subject to the jurisdiction 
     of an Indian tribe shall be held in trust by the Secretary 
     for all of the other co-owners of undivided trust or 
     restricted interests in the parcel in proportion to their 
     respective interests in the property, provided that any owner 
     may decline to accept such interest, in which case that 
     interest shall be allocated proportionately among such other 
     co-owners who do not decline.
       ``(3) The Indian tribe or other subsequent owner described 
     in paragraph (2) takes such interest free of all claims by 
     the owner who abandoned the interest and of all persons 
     claiming through or under such owner.
       ``(j) Regulations.--The Secretary is authorized to adopt 
     such regulations as may be necessary to implement the 
     provisions of this section.''.

     SEC. 8. MISSING HEIRS.

       Section 207 of the Indian Land Consolidation Act (25 U.S.C. 
     2206) is amended by adding the following:
       ``(m) Notice.--Prior to holding a hearing to determine the 
     heirs to trust or restricted property, or making a decision 
     determining such heirs, the Secretary shall seek to provide 
     actual written notice of the proceedings to all heirs, 
     including notice of the provisions of this subsection and of 
     section 207(n) of this Act. Such efforts shall include--
       ``(1) a search of publicly available records and Federal 
     records, including telephone and address directories and 
     including electronic search methods;
       ``(2) an inquiry with family members and co-heirs of the 
     property;
       ``(3) an inquiry with the tribal government of which the 
     owner is a member, and the tribal government with 
     jurisdiction over the property, if any; and
       ``(4) if the property is of a value greater than $1,000, an 
     independent firm shall be contracted to conduct a missing 
     persons search.
       ``(n) Missing Heirs.--
       ``(1) For purposes of this subsection and subsection (m), 
     an heir will be presumed missing if his whereabouts remain 
     unknown 60 days after completion of notice efforts under 
     subsection (m) and they have had no contact with other heirs 
     or the Department for 6 years prior to a hearing or decision 
     to ascertain heirs.
       ``(2) Before the date for declaring an heir missing, any 
     person may request an extension of time to locate an heir. An 
     extension may be granted for good cause.
       ``(3) An heir shall be declared missing only after a review 
     of the efforts made and a finding that this section has been 
     complied with.
       ``(4) A missing heir shall be presumed to have predeceased 
     the decedent for purposes of descent and devise.''.

     SEC. 9. ANNUAL NOTICE AND FILING REQUIREMENT FOR OWNERS OF 
                   INTERESTS IN TRUST OR RESTRICTED LANDS.

       The Indian Land Consolidation Act (25 U.S.C. 2201 et seq.) 
     (as amended by section 7) is amended by adding at the end the 
     following:

     ``SEC. 222. ANNUAL NOTICE AND FILING; CURRENT WHEREABOUTS OF 
                   INTEREST OWNERS.

       ``(a) In General.--On an annual basis, the Secretary shall 
     send a notice, response form, and a change of name and 
     address form to each owner of an interest in trust or 
     restricted land. The notice shall inform owners of their 
     interest and obligation to provide the Secretary with a 
     notice of any change in their name or address immediately 
     upon such change. The response form should include a section 
     in which the owner may confirm or update his name and 
     address. The change of name and address form may be used by 
     the owner at any time when his name or address changes 
     subsequent to his annual filing of the response form.
       ``(b) Owner Response.--The owner of an interest in trust or 
     restricted land shall file the response form upon receipt to 
     confirm or update his name and address on an annual basis.
       ``(c) No Response; Initiation of Search.--In the event that 
     an owner does not file the response form or provide the 
     Secretary with a confirmation or update of his name and 
     address through other means, the Secretary shall initiate a 
     search in order to ascertain the whereabouts and status of 
     the owner.''.

     SEC. 10. EFFECTIVE DATE.

       The amendments made by this Act shall not apply to the 
     estate of an individual who dies before the later of--
       (1) the date that is 1 year after the date of enactment of 
     this Act; or
       (2) the date specified in section 207(g)(5) of the Indian 
     Land Consolidation Act (25 U.S.C. 2206(g)(5)).
                                 ______