[Congressional Record Volume 150, Number 75 (Wednesday, June 2, 2004)]
[Senate]
[Pages S6367-S6384]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




               AMERICAN INDIAN PROBATE REFORM ACT OF 2004

  Mr. TALENT. Mr. President, I ask unanimous consent that the Senate 
proceed to the immediate consideration of Calendar No. 515, S. 1721.
  The PRESIDING OFFICER. The clerk will report the bill by title.
  The assistant legislative clerk read as follows:

       A bill (S. 1721) to amend the Indian Land Consolidation Act 
     to improve provisions relating to probate of trust and 
     restricted land, and for other purposes.

  There being no objection, the Senate proceeded to consider the 
bill, which had been reported from the Committee on Indian Affairs, 
with an amendment to strike all after the enacting clause and insert in 
lieu thereof the following:

  (Strike the part shown in black brackets and insert the part shown in 
italic.)

                                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
       [``(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

[[Page S6368]]

     (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 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

[[Page S6369]]

     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 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.

[[Page S6370]]

       [``(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 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

[[Page S6371]]

     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).
       [``(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)--

[[Page S6372]]

       [(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)--

       [(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

[[Page S6373]]

     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').
       [``(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;

[[Page S6374]]

       [``(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.--
       [``(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.

[[Page S6375]]

       [``(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)).]

     SECTION 1. SHORT TITLE.

       This Act may be cited as the ``American Indian Probate 
     Reform Act of 2004''.

     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;
       (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 and create incentives for owners of 
     trust and restricted land to engage in estate planning;
       (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; and
       (5) the provisions of a uniform Federal probate code and 
     other forth in this Act should operate to further the policy 
     of the United States as stated in the Indian Land 
     Consolidated Act Amendments of 2000, Public Law 106-462, 102, 
     November 7, 2000, 114 Stat. 1992.

     SEC. 3. INDIAN PROBATE REFORM.

       (a) Nontestamentary 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) Nontestamentary Disposition.--
       ``(1) Rules of descent.--Subject to any applicable Federal 
     law relating to the devise or descent of trust or restricted 
     property, any trust or restricted interest in land or 
     interest in trust personalty that is not disposed of by a 
     valid will--
       ``(A) shall descend according to an applicable tribal 
     probate code approved in accordance with section 206; or
       ``(B) in the case of a trust or restricted interest in land 
     or interest in trust personalty to which a tribal probate 
     code does not apply, shall descend in accordance with--
       ``(i) paragraphs (2) through (5); 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 
     land and trust personalty in the estate as follows:
       ``(i) If the decedent is survived by 1 or more eligible 
     heirs described in subparagraph (B) (i), (ii), (iii), or 
     (iv), the surviving spouse shall receive \1/3\ of the trust 
     personalty 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 eligible heirs described in 
     subparagraph (B) (i), (ii), (iii), or (iv), the surviving 
     spouse shall receive all of the trust personalty of the 
     decedent and a life estate without regard to waste in the 
     trust or restricted lands of the decedent.
       ``(iii) The remainder shall pass as set forth in 
     subparagraph (B).
       ``(iv) Trust personalty passing to a surviving spouse under 
     the provisions of this subparagraph shall be maintained by 
     the Secretary in an account as trust personalty, but only if 
     such spouse is Indian.
       ``(B) Individual and tribal heirs.--Where there is no 
     surviving spouse of the decedent, or there is a remainder 
     interest pursuant to subparagraph (A), the trust or 
     restricted estate or such remainder shall, subject to 
     subparagraphs (A) and (D), pass as follows:
       ``(i) To those of the decedent's children who are eligible 
     heirs (or if 1 or more of such children do not survive the 
     decedent, the children of any such deceased child who are 
     eligible heirs, by right of representation, but only if such 
     children of the deceased child survive the decedent) in equal 
     shares.
       ``(ii) If the property does not pass under clause (i), to 
     those of the decedent's surviving great-grandchildren who are 
     eligible heirs, in equal shares.
       ``(iii) If the property does not pass under clause (i) or 
     (ii), to the decedent's surviving parent who is an eligible 
     heir, and if both parents survive the decedent and are both 
     eligible heirs, to both parents in equal shares.
       ``(iv) If the property does not pass under clause (i), 
     (ii), or (iii), to those of the decedent's surviving siblings 
     who are eligible heirs, 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

[[Page S6376]]

     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.--
       ``(i) In general.--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 to the United States, provided that any 
     such interests in land passing to the United States under 
     this subparagraph shall be sold by the Secretary and the 
     proceeds from such sale deposited into the land acquisition 
     fund established under section 216 (25 U.S.C. 2215) and used 
     for the purposes described in subsection (b) of that section.
       ``(ii) Contiguous parcel.--If the interests passing to the 
     United States under this subparagraph are in a parcel of land 
     that is contiguous to another parcel of trust or restricted 
     land, the Secretary shall give the owner or owners of the 
     trust or restricted interest in the contiguous parcel the 
     first opportunity to purchase the interest at not less than 
     fair market value determined in accordance with this Act. If 
     more than 1 such owner in the contiguous parcel request to 
     purchase the parcel, the Secretary shall sell the parcel by 
     public auction or sealed bid (as determined by the Secretary) 
     at not less than fair market value to the owner of a trust or 
     restricted interest in the contiguous parcel submitting the 
     highest bid.
       ``(D) Intestate descent of small fractional interests in 
     land.--
       ``(i) General rule.--Notwithstanding subparagraphs (A) and 
     (B), and subject to any applicable Federal law, any trust or 
     restricted interest in land in the decedent's estate that is 
     not disposed of by a valid will and represents less than 5 
     percent of the entire undivided ownership of the parcel of 
     land of which such interest is a part, as evidenced by the 
     decedent's estate inventory at the time of the heirship 
     determination, shall descend in accordance with clauses (ii) 
     through (iv).
       ``(ii) Surviving spouse.--If there is a surviving spouse, 
     and such spouse was residing on a parcel of land described in 
     clause (i) at the time of the decedent's death, the spouse 
     shall receive a life estate without regard to waste in the 
     decedent's trust or restricted interest in only such parcel, 
     and the remainder interest in that parcel shall pass in 
     accordance with clause (iii).
       ``(iii) Single heir rule.--Where there is no life estate 
     created under clause (ii) or there is a remainder interest 
     under that clause, the trust or restricted interest or 
     remainder interest that is subject to this subparagraph shall 
     descend, in trust or restricted status, to--

       ``(I) the decedent's surviving child, but only if such 
     child is an eligible heir; and if 2 or more surviving 
     children are eligible heirs, then to the oldest of such 
     children;
       ``(II) if the interest does not pass under subclause (I), 
     the decedent's surviving grandchild, but only if such 
     grandchild is an eligible heir; and if 2 or more surviving 
     grandchildren are eligible heirs, then to the oldest of such 
     grandchildren;
       ``(III) if the interest does not pass under subclause (I) 
     or (II), the decedent's surviving great grandchild, but only 
     if such great grandchild is an eligible heir; and if 2 or 
     more surviving great grandchildren are eligible heirs, then 
     to the oldest of such great grandchildren;
       ``(IV) if the interest does not pass under subclause (I), 
     (II), or (III), the Indian tribe with jurisdiction over the 
     interest; or
       ``(V) if the interest does not pass under subclause (I), 
     (II), or (III), and there is no such Indian tribe to inherit 
     the property under subclause (IV), the interest shall be 
     divided equally among co-owners of trust or restricted 
     interests in the parcel; and if there are no such co-owners, 
     then to the United States, to be sold, and the proceeds from 
     sale used, in the same manner provided in subparagraph (C).

     The determination of which person is the oldest eligible heir 
     for inheritance purposes under this clause shall be made by 
     the Secretary in the decedent's probate proceeding and shall 
     be consistent with the provisions of this Act.
       ``(iv) Exceptions.--Notwithstanding clause (iii)--

       ``(I)(aa) the heir of an interest under clause (iii), 
     unless the heir is a minor or incompetent person, may agree 
     in writing entered into the record of the decedent's probate 
     proceeding to renounce such interest, in trust or restricted 
     status, in favor of--

       ``(AA) any other eligible heir or Indian person related to 
     the heir by blood, but in any case never in favor of more 
     than 1 such heir or person;
       ``(BB) any co-owner of another trust or restricted interest 
     in such parcel of land; or
       ``(CC) the Indian tribe with jurisdiction over the 
     interest, if any; and

       ``(bb) the Secretary shall give effect to such agreement in 
     the distribution of the interest in the probate proceeding; 
     and
       ``(II) the governing body of the Indian tribe with 
     jurisdiction over an interest in trust or restricted land 
     that is subject to the provisions of this subparagraph may 
     adopt a rule of intestate descent applicable to such 
     interest that differs from the order of decedent set forth 
     in clause (iii). The Secretary shall apply such rule to 
     the interest in distributing the decedent's estate, but 
     only if--
       ``(aa) a copy of the tribal rule is delivered to the 
     official designated by the Secretary to receive copies of 
     tribal rules for the purposes of this clause;
       ``(bb) the tribal rule provides for the intestate 
     inheritance of such interest by no more than 1 heir, so that 
     the interest does not further fractionate;
       ``(cc) the tribal rule does not apply to any interest 
     disposed of by a valid will;
       ``(dd) the decedent died on or after the date described in 
     subsection (b) of section 8 of the American Indian Probate 
     Act of 2004, or on or after the date on which a copy of the 
     tribal rule was delivered to the Secretary pursuant to item 
     (aa), whichever is later; and
       ``(ee) the Secretary does not make a determination within 
     90 days after a copy of the tribal rule is delivered pursuant 
     to item (aa) that the rule would be unreasonably difficult to 
     administer or does not conform with the requirements in item 
     (bb) or (cc).
       ``(v) Rule of construction.--This subparagraph shall not be 
     construed to limit a person's right to devise any trust or 
     restricted interest by way of a valid will in accordance with 
     subsection (b).
       ``(3) Right of representation.--If, under this subsection, 
     all or any part of the estate of a decedent is to pass to 
     children of a deceased child by right of representation, that 
     part is to be divided into as many equal shares as there are 
     living children of the decedent and pre-deceased children who 
     left issue who survive the decedent. Each living child of the 
     decedent, if any, shall receive 1 share, and the share of 
     each pre-deceased child shall be divided equally among the 
     pre-deceased child's children.
       ``(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.--Except as provided in 
     paragraphs (2) (A) and (D) regarding the life estate of a 
     surviving spouse, a trust or restricted interest in land or 
     trust personalty that descends under the provisions of this 
     subsection shall vest in the heir in the same trust or 
     restricted status as such interest was held immediately prior 
     to the decedent's death.''.
       (b) Testamentary 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) 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 a trust or 
     restricted interest in land may devise such interest to--
       ``(i) any lineal descendant of the testator;
       ``(ii) any person who owns a preexisting undivided trust or 
     restricted interest in the same parcel of land;
       ``(iii) the Indian tribe with jurisdiction over the 
     interest in land; or
       ``(iv) any Indian;
     in trust or restricted status.

       ``(B) Rules of interpretation.--Any devise of a trust or 
     restricted interest in land pursuant to subparagraph (A) to 
     an Indian or the Indian tribe with jurisdiction over the 
     interest shall be deemed to be a devise of the interest in 
     trust or restricted status. Any devise of a trust or 
     restricted interest in land to a person who is only eligible 
     to be a devisee under clause (i) or (ii) of subparagraph (A) 
     shall be presumed to be a devise of the interest in trust or 
     restricted status unless language in such devise clearly 
     evidences an intent on the part of the testator that the 
     interest is to pass as a life estate or fee interest in 
     accordance with paragraph (2)(A).
       ``(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 trust or restricted interest in land that is 
     not devised in accordance with paragraph (1)(A) may be 
     devised only--
       ``(i) as a life estate 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), as a fee 
     interest without Federal restrictions against alienation to 
     any person who is not eligible to be a devisee under clause 
     (iv) of paragraph (1)(A).
       ``(B) Indian reorganization act lands.--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)(A);

     provided that nothing in this section or in section 4 of the 
     Act of June 18, 1934 (25 U.S.C. 464), shall be construed to 
     authorize the devise of any interest in trust or restricted 
     land that is subject to section 4 of that Act to any person 
     as a fee interest under subparagraph (A)(ii).
       ``(3) General devise of an interest in trust personalty.--
       ``(A) Trust personality defined.--The term `trust 
     personalty' as used in this section includes all funds and 
     securities of any kind which are held in trust in an 
     individual Indian money account or otherwise supervised by 
     the Secretary.
       ``(B) In general.--Subject to any applicable Federal law 
     relating to the devise or descent of such trust personalty, 
     or a tribal probate code approved by the Secretary in 
     accordance with section 206, the owner of an interest in 
     trust personalty may devise such an interest to any person or 
     entity.
       ``(C) Maintenance as trust personalty.--In the case of a 
     devise of an interest in trust personalty to a person or 
     Indian tribe eligible to be

[[Page S6377]]

     a devisee under paragraph (1)(A), the Secretary shall 
     maintain and continue to manage such interests as trust 
     personalty.
       ``(D) Direct disbursement and distribution.--In the case of 
     a devise of an interest in trust personalty to a person or 
     Indian tribe not eligible to be a devisee under paragraph 
     (1)(A), the Secretary shall directly disburse and distribute 
     such personalty to the devisee.
       ``(4) Invalid devises and wills.--
       ``(A) Land.--Any trust or restricted interest in land that 
     is not devised in accordance with paragraph (1) or (2) or 
     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 (a).
       ``(B) Personalty.--Any trust personalty 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 (a).''.
       (c) Joint Tenancy; Right of Survivorship.--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:
       ``(1) Presumption of joint tenancy.--If a testator devises 
     trust or restricted interests in the same parcel of land to 
     more than 1 person, in the absence of clear and express 
     language in the devise stating that the interest is to pass 
     to the devisees as tenants in common, the devise shall be 
     presumed to create a joint tenancy with the right of 
     survivorship in the interests involved.
       ``(2) Exception.--Paragraph (1) shall not apply to any 
     devise of an interest in trust or restricted land where the 
     will in which such devise is made was executed prior to the 
     date that is 1 year after the date on which the Secretary 
     publishes the certification required by section 8(a)(4) of 
     the American Indian Probate Reform Act of 2004.''.
       (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 Act amends or 
     otherwise affects the application of any law described in 
     paragraph (1), or any other Federal law that pertains to--
       ``(A) trust or restricted land located on 1 or more 
     specific Indian reservations that are expressly identified in 
     such law; or
       ``(B) the allotted lands of 1 or more specific Indian 
     tribes that are expressly identified in such law.
       ``(i) Rules of Interpretation.--In the absence of a 
     contrary intent, and except as otherwise provided under this 
     Act, applicable Federal law, or a tribal probate code 
     approved by the Secretary pursuant to section 206, wills 
     shall be construed as to trust and restricted land and trust 
     personalty 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 trust personalty which the testator owned at his death, 
     including any such land or personalty acquired after the 
     execution of his will.
       ``(2) Class gifts.--
       ``(A) No differentiation between relationship by blood and 
     relationship by affinity.--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 interest 
     in land or an interest in trust personalty 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 another, a 
     person born out of wedlock shall be considered the child of 
     the natural mother and also of the natural father.
       ``(5) Lapsed devises.--Subject to the provisions of 
     subsection (b), where the testator devises or bequeaths a 
     trust or restricted interest in land or trust personalty to 
     the testator's grandparents or to the lineal descendent of a 
     grandparent, and the devisee or legatee dies before the 
     testator leaving lineal descendents, such descendents shall 
     take the interest so devised or bequeathed per stirpes.
       ``(6) Void devises.--Except as provided in paragraph (5), 
     and if the disposition shall not be otherwise expressly 
     provided for by a tribal probate code approved under section 
     206 (25 U.S.C. 2205), if a devise other than a residuary 
     devise of a trust or restricted interest in land or trust 
     personalty fails for any reason, such interest shall become 
     part of the residue and pass, subject to the provisions of 
     subsection (b), 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.
       ``(j) Heirship by Killing.--
       ``(1) Heir by killing defined.--As used in this subsection, 
     `heir by killing' means any person who knowingly 
     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 land, no heir by killing shall in any 
     way acquire any trust or restricted interests in land or 
     interests in trust personalty 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 trust or restricted interests in 
     land or trust personalty which would have passed from the 
     decedent or his estate to such heir--
       ``(A) under intestate succession under this section;
       ``(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 trust personalty 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 land or trust personalty 
     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 trust or restricted interest land 
     or trust personalty 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 time following the decedent's death equal 
     to the life expectancy of the decedent but for the killing.
       ``(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 trust personalty 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 personalty shall pass as if no charge had been 
     filed or made.
       ``(C) Conviction.--Upon conviction of such person, and the 
     exhaustion of all appeals, if any, the trust and restricted 
     land and trust personalty 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.--Except as provided under applicable Federal 
     law or a tribal probate code approved under section 206, the 
     provisions of this subsection shall govern the probate of 
     estates containing trust and restricted interests in land or 
     trust personalty.
       ``(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 the decedent's 
     trust or restricted land and trust personalty that the spouse 
     would have received if the testator had died intestate.
       ``(ii) Exception.--Clause (i) shall not apply to a trust or 
     restricted interest land where--

[[Page S6378]]

       ``(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 trust personalty in 
     the testator's estate, in accordance with the provisions of 
     section 207(a)(2)(A), as though there was no will but only 
     if--

       ``(I) the testator and surviving spouse were continuously 
     married without legal separation for the 5-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 
     toward the purchase of, 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.
       ``(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 trust or restricted 
     interests in land and trust personalty 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 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 interest in 
     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) 
     shall prevent the Secretary from giving effect to a property 
     right settlement relating to a trust or restricted interest 
     in land or an interest in trust personalty 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 trust or restricted interests in land or of 
     trust personalty 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) 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.
       ``(5) Advancements of trust personalty during lifetime; 
     effect on distribution of estate.--
       ``(A) The trust personalty of a decedent who dies intestate 
     as to all or a portion of his or her estate, given during the 
     decedent's lifetime to a person eligible to be an heir of the 
     decedent under subsection (b)(2)(B), 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 personalty 
     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 trust personalty predeceases 
     the decedent, the property shall not be 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.
       ``(6) 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 of 
     the trust or restricted land or trust personalty in the 
     decedent's estate based on the relationship that would 
     entitle such person to the larger share.
       ``(7) 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 subsection (a) of section 8 of the 
     American Indian Probate Reform Act of 2004.
       ``(8) Renunciation or disclaimer of interests.--
       ``(A) In general.--Any person 18 years of age or older may 
     renounce or disclaim an inheritance of a trust or restricted 
     interest in land or in trust personalty through intestate 
     succession or devise, either in full or subject to the 
     reservation of a life estate (where the interest is an 
     interest in land), in accordance with subparagraph (B), by 
     filing a signed and acknowledged declaration with the probate 
     decisionmaker prior to entry of a final probate order. No 
     interest so renounced or disclaimed shall be considered to 
     have vested in the renouncing or disclaiming heir or devisee, 
     and the renunciation or disclaimer shall not be considered to 
     be a transfer or gift of the renounced or disclaimed 
     interest.
       ``(B) Eligible recipients of renounced or disclaimed 
     interests; notice to recipients.--
       ``(i) Interests in land.--A trust or restricted interest in 
     land may be renounced or disclaimed only in favor of--

       ``(I) an eligible heir;
       ``(II) any person who would have been eligible to be a 
     devisee of the interest in question pursuant to subsection 
     (b)(1)(A) (but only in cases where the renouncing person is a 
     devisee of the interest under a valid will); or
       ``(III) the Indian tribe with jurisdiction over the 
     interest in question;

     and the interest so renounced shall pass to its recipient in 
     trust or restricted status.
       ``(ii) Trust personalty.--An interest in trust personalty 
     may be renounced or disclaimed in favor of any person who 
     would be eligible to be a devisee of such an interest under 
     subsection (b)(3) and shall pass to the recipient in 
     accordance with the provisions of that subsection.
       ``(iii) Unauthorized renunciations and disclaimers.--Unless 
     renounced or disclaimed in favor of a person or Indian tribe 
     eligible to receive the interest in accordance with the 
     provisions of this subparagraph, a renounced or disclaimed 
     interest shall pass as if the renunciation or disclaimer had 
     not been made.
       ``(C) Acceptance of interest.--A renunciation or disclaimer 
     of an interest filed in accordance with this paragraph shall 
     be considered accepted when implemented in a final order by a 
     decisionmaker, and shall thereafter be irrevocable. No 
     renunciation or disclaimer of an interest shall be included 
     in such order unless the recipient of the interest has been 
     given notice of the renunciation or disclaimer and has not 
     refused to accept the interest. All disclaimers and 
     renunciations filed and implemented in probate orders made 
     effective prior to the date of enactment of the American 
     Indian Probate Reform Act of 2004 are hereby ratified.
       ``(D) Rule of construction.--Nothing in this paragraph 
     shall be construed to allow the renunciation of an interest 
     that is subject to the provisions of section 207(a)(2)(D) (25 
     U.S.C. 2206(a)(2)(D)) in favor of more than 1 person.
       ``(9) Consolidation agreements.--
       ``(A) In general.--During the pendency of probate, the 
     decisionmaker is authorized to approve written consolidation 
     agreements effecting exchanges or gifts voluntarily entered 
     into between the decedent's eligible heirs or devisees, to 
     consolidate interests in any tract of land included in the 
     decedent's trust inventory. Such agreements may provide for 
     the conveyance of interests already owned by such heirs or 
     devisees in such tracts, without having to comply with the 
     Secretary's rules and requirements otherwise applicable to 
     conveyances by deed of trust or restricted interests in land.
       ``(B) Effective.--An agreement approved under subparagraph 
     (A) shall be considered final when implemented in an order by 
     a decisionmaker. The final probate order shall direct any 
     changes necessary to the Secretary's land records, to reflect 
     and implement the terms of the approved agreement.
       ``(C) Effect on purchase option at probate.--Any interest 
     in trust or restricted land that is subject to a 
     consolidation agreement under this paragraph or section 
     207(e) (25 U.S.C. 2206(e)) shall not be available for 
     purchase under section 207(p) (25 U.S.C. 2206(p)) unless the 
     decisionmaker determines that the agreement should not be 
     approved.''.

[[Page S6379]]

     SEC. 4. PARTITION OF HIGHLY FRACTIONATED INDIAN LANDS.

       Section 205 of the Indian Land Consolidation Act (25 U.S.C. 
     2204) (as amended by section 6(a)(2)) is amended by adding at 
     the end the following:
       ``(d) 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.--Each partition action under this 
     subsection shall be conducted by the Secretary in accordance 
     with the following requirements:
       ``(A) Application.--Upon receipt of any payment or bond 
     required under subparagraph (B), 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 interest in the 
     parcel of land who is eligible to bid at the sale of the 
     parcel pursuant to subclause (II), (III), or (IV) of 
     subparagraph (I)(i);

     provided that no such application shall be valid or 
     considered if it is received by the Secretary prior to the 
     date that is 1 year after the date on which notice is 
     published pursuant to section 8(a)(4) of the American Indian 
     Probate Reform Act of 2004.
       ``(B) Costs of serving notice and publication.--The costs 
     of serving and publishing notice under subparagraph (F) shall 
     be borne by the applicant. Upon receiving written notice from 
     the Secretary, the applicant must pay to the Secretary an 
     amount determined by the Secretary to be the estimated costs 
     of such service of notice and publication, or furnish a 
     sufficient bond for such estimated costs within the time 
     stated in the notice, failing which, unless an extension is 
     granted by the Secretary, the Secretary shall not be required 
     to commence the partition process under subparagraph (A) and 
     may deny the application. The Secretary shall have the 
     discretion and authority in any case to waive either the 
     payment or the bond (or any portion of such payment or bond) 
     otherwise required by this subparagraph, upon making a 
     determination that such waiver will further the policies of 
     this Act.
       ``(C) 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.
       ``(D) Consent requirements.--
       ``(i) In general.--A parcel of land may be partitioned 
     under this subsection only if the applicant obtains 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

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

       ``(III) the owners (including parents of minor owners and 
     legal guardians of incompetent owners) of at least 50 percent 
     of the undivided interests in the parcel, but only in cases 
     where the Secretary determines that, based on the final 
     appraisal prepared pursuant to subparagraph (F), any 1 
     owner's total undivided interest in the parcel (not including 
     the interest of an Indian tribe or that of the owner 
     requesting the partition) has a value in excess of $1,500.

     Any consent required by this clause must be in writing and 
     acknowledged before a notary public (or other official 
     authorized to make acknowledgments), and shall be approved by 
     Secretary unless the Secretary has reason to believe that the 
     consent was obtained as a result of fraud or undue influence.
       ``(ii) Consent by the secretary on behalf of certain 
     individuals.--For the purposes of clause (i)(III), the 
     Secretary may consent on behalf of--

       ``(I) undetermined heirs of trust or restricted interests 
     and owners of such interests who are minors and legal 
     incompetents having no parents or legal guardian; and
       ``(II) missing owners or owners of trust or restricted 
     interests whose whereabouts are unknown, but only after a 
     search for such owners has been completed in accordance with 
     the provisions of this subsection.
       ``(E) Appraisal.--After the Secretary has determined that 
     the subject parcel is a parcel of highly fractionated Indian 
     land pursuant to subparagraph (C), the Secretary shall cause 
     to be made, in accordance with the provisions of this Act for 
     establishing fair market value, an appraisal of the fair 
     market value of the subject parcel.
       ``(F) Notice to owners on completion of appraisal.--Upon 
     completion of the appraisal, the Secretary shall give notice 
     of the requested partition and appraisal to all owners of 
     undivided interests in the parcel, in accordance with 
     principles of due process. Such notice shall include the 
     following requirements:
       ``(i) Written notice.--The Secretary shall attempt to give 
     each owner written notice of the partition action stating the 
     following:

       ``(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 as evidenced by the Secretary's records as of the date 
     that owners are determined in accordance with clause (ii).
       ``(IV) The results of the appraisal.
       ``(V) The owner's right to receive a copy of the appraisal 
     upon written request.
       ``(VI) The owner's right to comment on or object to the 
     proposed partition and the appraisal.
       ``(VII) That the owner must timely comment on or object in 
     writing to the proposed partition or the appraisal, in order 
     to receive notice of approval of the appraisal and right to 
     appeal.
       ``(VIII) The date by which the owner's written comments or 
     objections must be received, which shall not be less than 90 
     days after the date that the notice is mailed under this 
     clause or last published under clause (ii)(II).
       ``(IX) The address for requesting copies of the appraisal 
     and for submitting written comments or objections.
       ``(X) The name and telephone number of the official to be 
     contacted for purposes of obtaining information regarding the 
     proceeding, including the time and date of the auction of the 
     land or the date for submitting sealed bids.
       ``(XI) Any other information the Secretary deems to be 
     appropriate.

       ``(ii) Manner of service.--

       ``(I) Service by certified mail.--The Secretary shall use 
     due diligence to provide all owners of interests in the 
     subject parcel, as evidenced by the Secretary's records at 
     the time of the determination under subparagraph (C), with 
     actual notice of the partition proceedings by mailing a copy 
     of the written notice described in clause (i) by certified 
     mail, restricted delivery, to each such owner at the owner's 
     last known address. For purposes of this subsection, owners 
     shall be determined from the Secretary's land title records 
     as of the date of the determination under subparagraph (C) or 
     a date that is not more than 90 days prior to the date of 
     mailing under this clause, whichever is later. In the event 
     the written notice to an owner is returned undelivered, the 
     Secretary shall attempt to obtain a current address for such 
     owner by conducting a reasonable search (including a 
     reasonable search of records maintained by local, state, 
     Federal and tribal governments and agencies) and by inquiring 
     with the Indian tribe with jurisdiction over the subject 
     parcel, and, if different from that tribe, the Indian tribe 
     of which the owner is a member, and, if successful in 
     locating any such owner, send written notice by certified 
     mail in accordance with this subclause.
       ``(II) Notice by publication.--The Secretary shall give 
     notice by publication of the partition proceedings to all 
     owners that the Secretary was unable to serve pursuant to 
     subclause (I), and to unknown heirs and assigns by--

       ``(aa) publishing the notice described in clause (i) at 
     least 2 times in a newspaper of general circulation in the 
     county or counties where the subject parcel of land is 
     located or, if there is an Indian tribe with jurisdiction 
     over the parcel of land and that tribe publishes a tribal 
     newspaper or newsletter at least once every month, 1 time in 
     such newspaper of general circulation and 1 time in such 
     tribal newspaper or newsletter;
       ``(bb) posting such notice in a conspicuous place in the 
     tribal headquarters or administration building (or such other 
     tribal building determined by the Secretary to be most 
     appropriate for giving public notice) of the Indian tribe 
     with jurisdiction over the parcel of land, if any; and
       ``(cc) in addition to the foregoing, in the Secretary's 
     discretion, publishing notice in any other place or means 
     that the Secretary determines to be appropriate.
       ``(G) Review of comments on appraisal.--
       ``(i) In general.--After reviewing and considering comments 
     or information timely submitted by any owner of an interest 
     in the parcel in response to the notice required under 
     subparagraph (F), the Secretary may, consistent with the 
     provisions of this Act for establishing fair market value--

       ``(I) order a new appraisal; or
       ``(II) approve the appraisal;

     provided that if the Secretary orders a new appraisal under 
     subclause (I), notice of the new appraisal shall be given as 
     specified in clause (ii).
       ``(ii) Notice.--Notice shall be given--

       ``(I) in accordance with subparagraph (H), where the new 
     appraisal results in a higher valuation of the land; or
       ``(II) in accordance with subparagraph (F)(ii), where the 
     new appraisal results in a lower valuation of the land.

       ``(H) Notice to owners of approval of appraisal and right 
     to appeal.--Upon making the determination under subparagraph 
     (G), the Secretary shall provide to the Indian tribe with 
     jurisdiction over the subject land and to all persons who 
     submitted written comments on or objections to the proposed 
     partition or appraisal, a written notice to be served on such 
     tribe and persons by certified mail. Such notice shall 
     state--
       ``(i) the results of the appraisal;
       ``(ii) that the owner has the right to review a copy of the 
     appraisal upon request;
       ``(iii) that the land will be sold for not less than the 
     appraised value, subject to the consent requirements under 
     paragraph (2)(D);
       ``(iv) the time of the sale or for submitting bids under 
     subparagraph (I);
       ``(v) that the owner has the right, under the Secretary's 
     regulations governing administrative appeals, to pursue an 
     administrative appeal from--

       ``(I) the determination that the land may be partitioned by 
     sale under the provisions of this section; and
       ``(II) the Secretary's order approving the appraisal;

       ``(vi) the date by which an administrative appeal must be 
     taken, a citation to the provisions

[[Page S6380]]

     of the Secretary's regulations that will govern the owner's 
     appeal, and any other information required by such 
     regulations to be given to parties affected by adverse 
     decisions of the Secretary;
       ``(vii) in cases where the Secretary determines that any 
     person's undivided trust or restricted interest in the parcel 
     exceeds $1,500 pursuant to paragraph (2)(D)(iii), that the 
     Secretary has authority to consent to the partition on behalf 
     of undetermined heirs of trust or restricted interests in the 
     parcel and owners of such interests whose whereabouts are 
     unknown; and
       ``(viii) any other information the Secretary deems to be 
     appropriate.
       ``(I) Sale to eligible purchaser.--
       ``(i) In general.--Subject to clauses (ii) and (iii) and 
     the consent requirements of paragraph (2)(D), the Secretary 
     shall, after providing notice to owners under subparagraph 
     (H), including the time and place of sale or for receiving 
     sealed bids, at public auction or by sealed bid (whichever of 
     such methods of sale the Secretary determines to be more 
     appropriate under the circumstances) sell the parcel of land 
     by competitive bid for not less than the final appraised fair 
     market value to the highest bidder from among the following 
     eligible bidders:

       ``(I) The Indian tribe, if any, with jurisdiction over the 
     trust or restricted interests in the parcel being sold.
       ``(II) Any person who is a member, or is eligible to be a 
     member, of the Indian tribe described in subclause (I).
       ``(III) Any person who is a member, or is eligible to be a 
     member, of an Indian tribe but not of the tribe described in 
     subclause (I), but only if such person already owns an 
     undivided interest in the parcel at the time of sale.
       ``(IV) Any lineal descendent of the original allottee of 
     the parcel who is a member or is eligible to be a member of 
     an Indian tribe or, with respect to a parcel located in the 
     State of California that is not within an Indian tribe's 
     reservation or not otherwise subject to the jurisdiction of 
     an Indian tribe, who is a member, or eligible to be a member, 
     of an Indian tribe or owns a trust or restricted interest in 
     the parcel.

       ``(ii) Right to match highest bid.--If the highest bidder 
     is a person who is only eligible to bid under clause 
     (i)(III), the Indian tribe that has jurisdiction over the 
     parcel, if any, shall have the right to match the highest bid 
     and acquire the parcel, but only if--

       ``(I) prior to the date of the sale, the governing body of 
     such tribe has adopted a tribal law or resolution reserving 
     its right to match the bids of such nonmember bidders in 
     partition sales under this subsection and delivered a copy of 
     such law or resolution to the Secretary; and
       ``(II) the parcel is not acquired under clause (iii).

       ``(iii) Right to purchase.--Any person who is a member, or 
     eligible to be a member, of the Indian tribe with 
     jurisdiction over the trust or restricted interests in the 
     parcel being sold and is, as of the time of sale under this 
     subparagraph, the owner of the largest undivided interest in 
     the parcel shall have a right to purchase the parcel by 
     tendering to the Secretary an amount equal to the highest 
     sufficient bid submitted at the sale, less that amount of the 
     bid attributable to such owner's share, but only if--

       ``(I) the owner submitted a sufficient bid at the sale;
       ``(II) the owner's total undivided interest in the parcel 
     immediately prior to the sale was--

       ``(aa) greater than the undivided interest held by any 
     other co-owners, except where there are 2 or more co-owners 
     whose interests are of equal size but larger than the 
     interests of all other co-owners and such owners of the 
     largest interests have agreed in writing that 1 of them may 
     exercise the right of purchase under this clause; and
       ``(bb) equal to or greater than 20 percent of the entire 
     undivided ownership of the parcel;

       ``(III) within 3 days following the date of the auction or 
     for receiving sealed bids, and in accordance with the 
     regulations adopted to implement this section, the owner 
     delivers to the Secretary a written notice of intent to 
     exercise the owner's rights under this clause; and
       ``(IV) such owner tenders the amount of the purchase price 
     required under this clause--

       ``(aa) not less than 30 days after the date of the auction 
     or time for receiving sealed bids; and
       ``(bb) in accordance with any requirements of the 
     regulations promulgated to implement this section.
       ``(iv) Interest acquired.--A purchaser of a parcel of land 
     under this subparagraph shall acquire title to the parcel in 
     trust or restricted status, free and clear of any and all 
     claims of title or ownership of all persons or entities (not 
     including the United States) owning or claiming to own an 
     interest in such parcel prior to the time of sale.
       ``(J) Proceeds of sale.--
       ``(i) Subject to clauses (ii) and (iii), the Secretary 
     shall distribute the proceeds of sale of a parcel of land 
     under the provisions of this section to the owners of 
     interests in such parcel in proportion to their respective 
     ownership interests.
       ``(ii) Proceeds attributable to the sale of trust or 
     restricted interests shall be maintained in accounts as trust 
     personalty.
       ``(iii) Proceeds attributable to the sale of interests of 
     owners whose whereabouts are unknown, of undetermined heirs, 
     and of other persons whose ownership interests have not been 
     recorded shall be held by the Secretary until such owners, 
     heirs, or other persons have been determined, at which time 
     such proceeds shall be distributed in accordance with clauses 
     (i) and (ii).
       ``(K) Lack of bids or consent.--
       ``(i) Lack of bids.--If no bidder described in subparagraph 
     (I) presents a bid that equals or exceeds the final appraised 
     value, the Secretary may either--

       ``(I) purchase the parcel of land for its appraised fair 
     market value on behalf of the Indian tribe with jurisdiction 
     over the land, subject to the lien and procedures provided 
     under section 214(b) (25 U.S.C. 2213(b)); or
       ``(II) terminate the partition process.

       ``(ii) Lack of consent.--If an applicant fails to obtain 
     any applicable consent required under the provisions of 
     subparagraph (D) by the date established by the Secretary 
     prior to the proposed sale, the Secretary may either extend 
     the time for obtaining any such consent or deny the request 
     for partition.
       ``(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 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 order for ejectment 
     or any other appropriate remedy necessary for the partition 
     of the land 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 against the United States or that the United 
     States is a necessary and indispensable party.
       ``(4) Grants and loans.--The Secretary may provide grants 
     and low interest loans to successful bidders at sales 
     authorized by this subsection, provided that--
       ``(A) the total amount of such assistance in any such sale 
     shall not exceed 20 percent of the appraised value of the 
     parcel of land sold; and
       ``(B) the grant or loan funds provided shall only be 
     applied toward the purchase price of the parcel of land sold.
       ``(5) Regulations.--The Secretary is authorized to adopt 
     such regulations as may be necessary to implement the 
     provisions of this subsection. Such regulations shall include 
     provisions for giving notice of sales to prospective 
     purchasers eligible to submit bids at sales conducted under 
     paragraph (2)(I).''.

     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 
     for certain purposes 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 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, enter 
     into a lease of the parcel for agricultural purposes for a 
     term not to exceed 10 years.
       ``(2) Rule of construction.--No such lease shall be 
     effective until it has been executed by the owners of all 
     undivided trust or restricted interests in the parcel.
       ``(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. No such application shall be valid 
     or considered if it is received by the Secretary prior to the 
     date that is 1 year after the date on which notice is 
     published pursuant to section 8(a)(4) of the American Indian 
     Probate Reform Act of 2004.
       ``(2) Commencement of owner-managed status.--
     Notwithstanding the approval of 1 or more applications 
     pursuant to paragraph (1), no trust or restricted interest in 
     a parcel of land shall acquire owner-managed status until 
     applications for all of the trust or restricted interests in 
     such parcel of land have been submitted to and approved by 
     the Secretary pursuant to this section.
       ``(e) Validity of Leases.--No lease of trust or restricted 
     interests in a parcel of land that is owner-managed under 
     this section shall be valid or enforceable against the owners 
     of such interests, or against the land, the interest or the 
     United States, unless such lease--
       ``(1) is consistent with, and entered into in accordance 
     with, the requirements of this section; or
       ``(2) has been approved by the Secretary in accordance with 
     other Federal laws applicable to the leasing of trust or 
     restricted land.
       ``(f) Lease Revenues.--The Secretary shall not be 
     responsible for the collection of, or accounting for, any 
     lease revenues accruing to any interests under a lease 
     authorized by subsection (e), so long as such interest is in 
     owner-managed 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

[[Page S6381]]

     owner-managed pursuant to this section shall continue to have 
     jurisdiction over the interest to the same extent and in all 
     respects that such 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 referred to 
     in paragraph (1), 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 the 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 has 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--
       ``(A) the interest 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) the interest 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 transaction described in 
     paragraph (1) of subsection (c), interests that acquire 
     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 (including leases with terms of a duration in 
     excess of 10 years) that would otherwise apply to such 
     interests if the interests had not acquired owner-managed 
     status under this section.
       ``(k) Effect of Section.--Subject to subsections (c), (f), 
     and (h), nothing in this section diminishes or otherwise 
     affects any authority or responsibility of the Secretary with 
     respect to an interest in trust or restricted land.''.

     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 207 (25 U.S.C. 2206), by adding a subsection 
     at the end as follows:
       ``(p) Purchase Option at Probate.--
       ``(1) In general.--The trust or restricted interests in a 
     parcel of land in the decedent's estate may be purchased at 
     probate in accordance with the provisions of this subsection.
       ``(2) Sale of interest at fair market value.--Subject to 
     paragraph (3), the Secretary is authorized to sell trust or 
     restricted interests in land subject to this subsection, 
     including the interest that a surviving spouse would 
     otherwise receive under section 207(a)(2) (A) or (D), at no 
     less than fair market value, as determined in accordance with 
     the provisions of this Act, to any of the following eligible 
     purchasers:
       ``(A) Any other eligible heir taking an interest in the 
     same parcel of land by intestate succession or the decedent's 
     other devisees of interests in the same parcel who are 
     eligible to receive a devise under section 207(b)(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 to purchase; auction; consent requirements.--
     No sale of an interest in probate shall occur under this 
     subsection unless--
       ``(A) an eligible purchaser described in paragraph (2) 
     submits a written request to purchase prior to the 
     distribution of the interest to heirs or devisees of the 
     decedent and in accordance with any regulations of the 
     Secretary; and
       ``(B) except as provided in paragraph (5), the heirs or 
     devisees of such interest, and the decedent's surviving 
     spouse, if any, receiving a life estate under section 
     207(a)(2) (A) or (D) consent to the sale.
     If the Secretary receives more than 1 request to purchase the 
     same interest, the Secretary shall sell the interest by 
     public auction or sealed bid (as determined by the Secretary) 
     at not less than the appraised fair market value to the 
     eligible purchaser submitting the highest bid.
       ``(4) Appraisal and notice.--Prior to the sale of an 
     interest pursuant to this subsection, the Secretary shall--
       ``(A) appraise the interest at its fair market value in 
     accordance with this Act;
       ``(B) provide eligible heirs, other devisees, and the 
     Indian tribe with jurisdiction over the interest with written 
     notice, sent by first class mail, that the interest is 
     available for purchase in accordance with this subsection; 
     and
       ``(C) if the Secretary receives more than 1 request to 
     purchase the interest by a person described in subparagraph 
     (B), provide notice of the manner (auction or sealed bid), 
     time and place of the sale, a description, and the appraised 
     fair market value, of the interest to be sold--
       ``(i) to the heirs or other devisees and the Indian tribe 
     with jurisdiction over the interest, by first class mail; and
       ``(ii) to all other eligible purchasers, by posting written 
     notice in at least 5 conspicuous places in the vicinity of 
     the place of hearing.
       ``(5) Small undivided interests in indian lands.--
       ``(A) In general.--Subject to subparagraph (B), the consent 
     of a person who is an heir otherwise required under paragraph 
     (3)(B) shall not be required for the auction and sale of an 
     interest at probate under this subsection if--
       ``(i) the interest is passing by intestate succession; and
       ``(ii) prior to the auction the Secretary determines in the 
     probate proceeding that the interest passing to such heir 
     represents less than 5 percent of the entire undivided 
     ownership of the parcel of land as evidenced by the 
     Secretary's records as of the time the determination is made.
       ``(B) Exception.--Notwithstanding subparagraph (A), the 
     consent of such heir shall be required for the sale at 
     probate of the heir's interest if, at the time of the 
     decedent's death, the heir was residing on the parcel of land 
     of which the interest to be sold was a part.
       ``(6) Distribution of proceeds.--Proceeds from the sale of 
     interests under this subsection shall be distributed to the 
     heirs, devisees, or spouse whose interest was sold in 
     accordance with the values of their respective interests. The 
     proceeds attributable to an heir or devisee shall be held in 
     an account as trust personalty if the interest sold would 
     have otherwise passed to the heir or devisee in trust or 
     restricted status.'';
       (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 to--
       ``(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(b)(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 a person or entity that is not a member 
     of the family of the owner of the land.

       ``(ii) Recording of interest.--On request by the 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.

[[Page S6382]]

       ``(iii) Mortgage and foreclosure.--Nothing in clause 
     (i)(II) limits--

       ``(I) the ability of an owner of land to which that clause 
     applies to mortgage the land; or
       ``(II) 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.''; and
       (II) in subparagraph (B), by striking ``subparagraph (A)'' 
     and all that follows through ``207(a)(6)(B) of this title'' 
     and inserting ``paragraph (1)'';

       (4) in section 207 (25 U.S.C. 2206), by striking subsection 
     (g);
       (5) 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), by--
       (i) adding in paragraph (1) ``or from an heir during 
     probate in accordance with section 207(p) (25 U.S.C. 
     2206(p))'' after ``owner,''; and
       (ii) 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
       (iii) 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 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''; and
       (E) by adding at the end of the section:
       ``(d) Authorization of Appropriations.--There is authorized 
     to be appropriated to carry out this section $75,000,000 for 
     fiscal year 2005, $95,000,000 for fiscal year 2006, and 
     $145,000,000 for each of fiscal years 2007 through 2010.'';
       (6) 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.--The Secretary may, in 
     consultation with tribal governments and other entities 
     described in section 213(b)(3), periodically remove liens 
     referred to in paragraph (1) from interests in land acquired 
     by the Secretary.'';
       (7) in section 215 (25 U.S.C. 2214), in the last sentence, 
     by striking ``section 2212 of this title'' and inserting 
     ``this Act'';
       (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)--

       (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 a trust or restricted interest in 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 the 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 
     inserting ``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, or interest in, 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, or interest in, 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 parcel or interest is offered for sale to an 
     entity or person 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).'';
       (10) in section 219(b)(1)(A) (25 U.S.C. 2218(b)(1)(A)), by 
     striking ``100'' and inserting ``90''; and
       (11) in section 219, by adding at the end of the section:
       ``(g) Other Laws.--Nothing in this Act shall be construed 
     to supersede, repeal, or modify any general or specific 
     statute authorizing the grant or approval of any type of land 
     use transaction

[[Page S6383]]

     involving fractional interests in trust or restricted 
     land.''.
       (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 2004) of a trust or restricted interest 
     in land;
       ``(B) any person meeting the definition of Indian under the 
     Indian Reorganization Act (25 U.S.C. 479) and the regulations 
     promulgated thereunder; and
       ``(C) with respect to the inheritance and ownership of 
     trust or restricted land in the State of California pursuant 
     to section 207, any person described in subparagraph (A) or 
     (B) or any person who owns a trust or restricted interest in 
     a parcel of such land in that State.'';
       (2) by striking paragraph (4) and inserting the following:
       ``(4) `trust or restricted lands' means lands, title to 
     which is held by the United States in trust for an Indian 
     tribe or individual, or which is held by an Indian tribe or 
     individual subject to a restriction by the United States 
     against alienation; and `trust or restricted interest in 
     land' or `trust or restricted interest in a parcel of land' 
     means an interest in land, title to which is held in trust by 
     the United States for an Indian tribe or individual, or which 
     is held by an Indian tribe or individual subject to a 
     restriction by the United States against alienation.''; and
       (3) 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, as 
     evidenced by the Secretary's records at the time of the 
     determination--
       ``(A) 50 or more but less than 100 co-owners of undivided 
     trust or restricted interests, and no 1 of such co-owners 
     holds a total undivided trust or restricted interest in the 
     parcel that is greater than 10 percent of the entire 
     undivided ownership of the parcel; or
       ``(B) 100 or more co-owners of undivided trust or 
     restricted interests;
       ``(7) `land' means any real property, and includes within 
     its meaning for purposes of this Act improvements permanently 
     affixed to real property;
       ``(8) `person' or `individual' means a natural person;
       ``(9) `eligible heirs' means, for purposes of section 207 
     (25 U.S.C. 2206), any of a decedent's children, 
     grandchildren, great grandchildren, full siblings, half 
     siblings by blood, and parents who are--
       ``(A) Indian; or
       ``(B) lineal descendents within 2 degrees of consanguinity 
     of an Indian; or
       ``(C) owners of a trust or restricted interest in a parcel 
     of land for purposes of inheriting by descent, renunciation, 
     or consolidation agreement under section 207 (25 U.S.C. 
     2206), another trust or restricted interest in such parcel 
     from the decedent; and
       ``(10) `without regard to waste' means, with respect to a 
     life estate interest in land, that the holder of such estate 
     is entitled to the receipt of all income, including bonuses 
     and royalties, from such land to the exclusion of the 
     remaindermen.''.
       (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)(2) of the Indian Land 
     Consolidation Act (25 U.S.C. 2206(f)(2)) 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''.
       (3) Probate code development and legal assistance grants.--
     Section 207(f)(3) of the Indian Land Consolidation Act (25 
     U.S.C. 2206(f)(3)) is amended by striking paragraph (3) and 
     inserting the following:
       ``(3) Probate code development and legal assistance 
     grants.--In carrying out this section, the Secretary may 
     award grants to--
       ``(A) Indian tribes, for purposes of tribal probate code 
     development and estate planning services to tribal members;
       ``(B) organizations that provide legal assistance services 
     for Indian tribes, Indian organizations, and individual 
     owners of interests in trust or restricted lands that are 
     qualified as nonprofit organizations under section 501(c)(3) 
     of the Internal Revenue Code of 1986 and provide such 
     services pursuant to Federal poverty guidelines, for purposes 
     of providing 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
       ``(C) in specific areas and reservations where qualified 
     nonprofit organizations referred to in subparagraph (B) do 
     not provide such legal assistance to Indian tribes, Indian 
     organizations, or individual owners of trust or restricted 
     land, to other providers of such legal assistance;
     that submit an application to the Secretary, in such form and 
     manner as the Secretary may prescribe.
       ``(4) Authorization for appropriations.--There is 
     authorized to be appropriated such sums as may be necessary 
     to carry out the provisions of paragraph (3).''.
       (4) Notification to landowners.--Section 207 of the Indian 
     Land Consolidation Act (25 U.S.C. 2206) is amended by adding 
     at the end the following:
       ``(l) Notification to Landowners.--After receiving written 
     request by any owner of a trust or restricted interest in 
     land, the Secretary shall provide to such landowner the 
     following information with respect to each tract of trust or 
     restricted land in which the landowner has an interest:
       ``(1) The location of the tract of land involved.
       ``(2) The identity of each other co-owner of interests in 
     the parcel of land.
       ``(3) The percentage of ownership of each owner of an 
     interest in the tract.
       ``(m) Pilot Project for the Management of Trust Assets of 
     Indian Families and Relatives.--
       ``(1) Development pilot project.--The Secretary shall 
     consult with tribes, individual landowner organizations, 
     Indian advocacy organizations, and other interested parties 
     to--
       ``(A) develop a pilot project for the creation of legal 
     entities such as private or family trusts, partnerships 
     corporations, or other organizations to improve, facilitate, 
     and assist in the efficient management of interests in trust 
     or restricted lands or funds owned by Indian family members 
     and relatives; and
       ``(B) develop proposed rules, regulations, and guidelines 
     to implement the pilot project, including--
       ``(i) the criteria for establishing such legal entities;
       ``(ii) reporting and other requirements that the Secretary 
     determines to be appropriate for administering such entities; 
     and
       ``(iii) provisions for suspending or revoking the authority 
     of an entity to engage in activities relating to the 
     management of trust or restricted assets under the pilot 
     project in order to protect the interests of the beneficial 
     owners of such assets.
       ``(2) Primary purposes; limitation; approval of 
     transactions; payments by secretary.--
       ``(A) Purposes.--The primary purpose of any entity 
     organized under the pilot project shall be to improve, 
     facilitate, and assist in the management of interests in 
     trust or restricted land, held by 1 or more persons, in 
     furtherance of the purposes of this Act.
       ``(B) Limitation.--The organization or activities of any 
     entity under the pilot project 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 trust or restricted 
     interests in land to exercise any powers over such interests 
     greater than that held by the Secretary with respect to such 
     interests.
       ``(C) Secretarial approval of transactions.--Any 
     transaction involving the lease, use, mortgage or other 
     disposition of trust or restricted land or other trust assets 
     administered by or through an entity under the pilot project 
     shall be subject to approval by the Secretary in accordance 
     with applicable Federal law.
       ``(D) Payments.--The Secretary shall have the authority to 
     make payments of income and revenues derived from trust or 
     restricted land or other trust assets administered by or 
     through an entity participating in the pilot project directly 
     to the entity, in accordance with requirements of the 
     regulations adopted pursuant to this subsection.
       ``(3) Limitations on pilot project.--
       ``(A) Number of organizations.--The number of entities 
     established under the pilot project authorized by this 
     subsection shall not exceed 30.
       ``(B) Regulations required.--No entity shall commence 
     activities under the pilot project authorized by this 
     subsection until the Secretary has adopted final rules and 
     regulations under paragraph (1)(B).
       ``(4) 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

[[Page S6384]]

     associations, Indian advocacy organizations, and other 
     parties consulted with regarding the development of rules and 
     regulations for the creation and management of interests in 
     trust and restricted lands under the pilot project;
       ``(B) the feasibility of accurately monitoring the 
     performance of legal entities such as those involved in the 
     pilot project, and the effectiveness of such entities as 
     mechanisms to manage and protect trust assets;
       ``(C) the impact that the use of entities such as those in 
     the pilot project may have with respect to the accomplishment 
     of the goals of the Indian Land Consolidation Act (25 U.S.C. 
     2201 et seq.); and
       ``(D) any recommendations that the Secretary may have 
     regarding whether to adopt a permanent program as a 
     management and consolidation measure for interests in trust 
     or restricted lands.
       ``(n) Notice to Heirs.--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. Such efforts shall include--
       ``(1) a search of publicly available records and Federal 
     records, including telephone and address directories and 
     including electronic search services or directories;
       ``(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 $2,000, 
     engaging the services of an independent firm to conduct a 
     missing persons search.
       ``(o) Missing Heirs.--
       ``(1) For purposes of this subsection and subsection (m), 
     an heir may be presumed missing if--
       ``(A) such heir's whereabouts remain unknown 60 days after 
     completion of notice efforts under subsection (m); and
       ``(B) in the proceeding to determine a decedent's heirs, 
     the Secretary finds that the heir has had no contact with 
     other heirs of the decedent, if any, or with the Department 
     relating to trust or restricted land or other trust assets at 
     any time during the 6-year period preceding the hearing to 
     determine heirs.
       ``(2) Before the date for declaring an heir missing, any 
     person may request an extension of time to locate such heir. 
     The Secretary shall grant a reasonable extension of time for 
     good cause.
       ``(3) An heir shall be declared missing only after a review 
     of the efforts made in the heirship proceeding and a finding 
     has been made that this subsection has been complied with.
       ``(4) An heir determined to be missing pursuant to this 
     subsection shall be deemed to have predeceased the decedent 
     for purposes of descent and devise of trust or restricted 
     land and trust personalty within that decedent's estate.''.

     SEC. 7. 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.) 
     is amended by adding at the end the following:

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

       ``On at least an annual basis, the Secretary shall include 
     along with other regular reports to owners of trust or 
     restricted interests in land and individual Indian money 
     account owners a change of name and address form by means of 
     which the owner may confirm or update the owner's name and 
     address. The change of name and address form shall include a 
     section in which the owner may confirm and update the owner's 
     name and address.''.

     SEC. 8. NOTICE; EFFECTIVE DATE.

       (a) Notice.--
       (1) In general.--Not later than 180 days after the date of 
     enactment of this Act, the Secretary shall notify Indian 
     tribes and owners of trust or restricted lands of the 
     amendments made by this Act.
       (2) Specifications.--The notice required under paragraph 
     (1) shall be designed to inform Indian owners of trust or 
     restricted land of--
       (A) the effect of this Act and the amendments made by this 
     Act, with emphasis on the effect of the provisions of this 
     Act and the amendments made by this Act, on the testate 
     disposition and intestate descent of their interests in trust 
     or restricted land;
       (B) estate planning options available to the owners, 
     including any opportunities for receiving estate planning 
     assistance or advice;
       (C) the use of negotiated sales, gift deeds, land 
     exchanges, and other transactions for consolidating the 
     ownership of land; and
       (D) a toll-free telephone number to be used for obtaining 
     information regarding the provisions of this Act and any 
     trust assets of such owners.
       (3) Requirements.--The Secretary shall provide the notice 
     required under paragraph (1)--
       (A) by direct mail for those Indians with interests in 
     trust and restricted lands for which the Secretary has an 
     address for the interest holder;
       (B) through the Federal Register;
       (C) through local newspapers in areas with significant 
     Indian populations, reservation newspapers, and newspapers 
     that are directed at an Indian audience; and
       (D) through any other means determined appropriate by the 
     Secretary.
       (4) Certification.--After providing notice under this 
     subsection, the Secretary shall--
       (A) certify that the requirements of this subsection have 
     been met; and
       (B) publish notice of that certification in the Federal 
     Register.
       (b) Effective Date.--Section 207 of the Indian Land 
     Consolidation Act (25 U.S.C. 2206), except subsections (e) 
     and (f) of that section, shall not apply to the estate of an 
     individual who dies before the date that is 1 year after the 
     date on which the Secretary makes the certification required 
     under subsection (a)(4).

     SEC. 9. SEVERABILITY.

       If any provision of this Act or of any amendment made by 
     this Act, or the application of any such provision to any 
     person or circumstance, is held to be invalid for any reason, 
     the remainder of this Act and of amendments made by this Act, 
     and the application of the provisions and of the amendments 
     made by this Act to any other person or circumstance shall 
     not be affected by such holding, except that each of 
     subclauses (II), (III), and (IV) of section 205(d)(2)(I)(i) 
     is deemed to be inseverable from the other 2, such that if 
     any 1 of those 3 subclauses is held to be invalid for any 
     reason, neither of the other 2 of such subclauses shall be 
     given effect.

     SEC. 10. REGULATIONS.

       The Secretary is authorized to adopt such regulations as 
     may be necessary to implement the provisions of this Act.

  Mr. TALENT. Mr. President, I ask unanimous consent that the committee 
amendment be agreed to, the bill, as amended, be read a third time and 
passed, the motions to reconsider be laid upon the table en bloc, and 
that any statements relating to the bill be printed in the Record.
  The PRESIDING OFFICER. Without objection, it is so ordered.
  The committee amendment in the nature of a substitute was agreed to.
  The bill (S. 1721), as amended, was read the third time and passed.

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