[Congressional Record (Bound Edition), Volume 151 (2005), Part 12]
[Senate]
[Pages 16617-16631]
[From the U.S. Government Publishing Office, www.gpo.gov]




          STATEMENTS ON INTRODUCED BILLS AND JOINT RESOLUTIONS

      By Mrs. MURRAY (for herself and Mr. DeWine):
  S. 1429. A bill to amend the Higher Education Act of 1965 to assist 
homeless students in obtaining postsecondary education, and for other 
purposes; to the Committee on Health, Education, Labor, and Pensions.
  Ms. MURRAY. Mr. President, today I join Senator DeWine to introduce a 
bill that would make the dream of a college diploma more accessible to 
homeless youth and kids in foster care.
  We all know the obstacles students' in America need to overcome in 
order to succeed in post-secondary education. Couple these traditional 
obstacles with extreme poverty, residential instability, insufficient 
documentation and lack of awareness of supportive educational programs 
and it is no wonder homeless children and children in foster care are 
only half as likely to go on to college as their peers.
  Youth in foster care are less likely to be enrolled in college 
preparatory classes and are more than twice as likely as non-foster 
care youth to drop out of high school altogether. Because The Higher 
Education Act supports several programs that motivate and support 
disadvantaged students to help increase their postsecondary educational 
attainment, it already has many of the tools necessary to intervene in 
these student lives. My bill would help programs, such as TRIO and GEAR 
UP, target their resources to better serve homeless and foster care 
populations. Early intervention is key in retaining these students and 
preparing them for post-secondary education.
  More than 70 percent of teens in foster care desire to go to college, 
only 27 percent of those who graduate from high school realize that 
dream. Although children and youth who experience the instability of 
homelessness or

[[Page 16618]]

foster care represent the full range of academic talents and abilities, 
their situations create serious barriers to school enrollment, 
attendance, and success.
  Homeless and foster care youth do not have the traditional family 
network to encourage or assist them in planning for a college 
education. These youth need help to select a college, apply for 
admission and obtaining financial aid. In addition, their student aid 
must be used for so much more than just tuition and books. They face 
the daunting challenges of housing, transportation and other basic 
needs. By assisting these youth to become independent students we will 
increase their access to student aid for financial aid purposes; 
improve their changes for a smooth transition into, and completion of, 
higher learning.
  Our nation's economic well-being depends on our ability to provide 
greater access to higher education for students, regardless of their 
family background. By passing this bill we guarantee more students than 
ever will be given the tools they need to attend college and succeed. 
Through college we provide these vulnerable students with the best hope 
for escaping the cycle of poverty and homelessness.
  I look forward to working with HELP Committee Chairman Enzi to 
incorporate these provisions into the Higher Education Act 
reauthorization bill. And again, I thank Senator DeWine for his 
commitment to these often overlooked children.
  I ask unanimous consent that the text of the bill be printed in the 
Record.
  There being no objection, the bill was ordered to be printed in the 
Record, as follows:

                                S. 1429

       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 ``Improving Access to 
     Education for Students Who Are Homeless or in Foster Care 
     Act''.

     SEC. 2. FINDINGS.

       Congress finds the following:
       (1) According to a study of foster care children in the 
     State of Washington, a child who enters foster care is likely 
     to have poorer academic outcomes than a child not in foster 
     care, even after controlling for a variety of factors such as 
     poverty.
       (2) Youth in foster care--
       (A) are less likely to be enrolled in college preparatory 
     classes than non-foster care youth; and
       (B) are more than twice as likely as non-foster care youth 
     (37 percent as compared to 16 percent) to have dropped out of 
     secondary school.
       (3) 50 percent of foster youth in the United States 
     graduate from secondary school, compared with 85 percent of 
     youth overall.
       (4) 70 percent of teens in foster care desire to go to 
     college.
       (5) A report from Casey Family Programs indicated that, 
     nationwide, less than 27 percent of foster youth who 
     graduated from secondary school went on to college, as 
     compared to 52 percent of the general population. Moreover, 
     the college dropout rate among foster youth is far higher 
     than the rate among other students.
       (6) A May 2002 report issued by the University of 
     California at Berkeley found that, of more than 3,200 foster 
     care youth who attended a community college from 1992 through 
     2000--
       (A) 39 percent earned between 1 and 17 credits;
       (B) 40 percent of the foster care youth earned no credits; 
     and
       (C) many of the foster care youth did not attempt to take 
     classes for credit, but rather were enrolled in remedial or 
     other non-credit classes.
       (7) Unaccompanied youth experiencing homelessness often 
     have left home for their own survival.
       (8) Although children and youth who experience homelessness 
     represent the full range of academic talents and abilities, 
     homelessness creates serious barriers to school enrollment, 
     attendance, and success.
       (9) The McKinney-Vento Homeless Assistance Act (42 U.S.C. 
     11301 et seq.) requires State educational agencies and local 
     educational agencies to ensure that homeless children and 
     youth receive a free and appropriate public education, but 
     these provisions do not reach beyond secondary education.
       (10) The barriers created by homelessness to kindergarten 
     through grade 12 education (extreme poverty, residential 
     instability, lack of documentation, and lack of awareness of 
     programs and resources) often are also barriers to 
     postsecondary education.
       (11) Higher education offers students experiencing 
     homelessness the best hope for escaping poverty and 
     homelessness as adults.

   TITLE I--FINANCIAL ASSISTANCE FOR STUDENTS WHO ARE HOMELESS OR IN 
                              FOSTER CARE

     SEC. 101. NEED ANALYSIS.

       (a) Special Circumstances.--Section 479A(a) of the Higher 
     Education Act of 1965 (20 U.S.C. 1087tt(a)) is amended, in 
     the third sentence, by inserting ``a change in housing status 
     that results in homelessness,'' before ``or other changes''.
       (b) Independent Student.--Section 480(d) of the Higher 
     Education Act of 1965 (20 U.S.C. 1087vv(d)) is amended to 
     read as follows:
       ``(d) Independent Student.--
       ``(1) Definition.--The term `independent', when used with 
     respect to a student, means any individual who--
       ``(A) is 24 years of age or older by December 31 of the 
     award year;
       ``(B) is an orphan, in foster care, or a ward of the court, 
     or was in foster care or a ward of the court until the 
     individual reached the age of 18;
       ``(C) is an emancipated youth, as defined by the student's 
     State of legal residence;
       ``(D) is in legal guardianship, as defined in section 475 
     of the Social Security Act (42 U.S.C. 675);
       ``(E) is a veteran of the Armed Forces of the United States 
     (as defined in subsection (c)(1));
       ``(F) is a graduate or professional student;
       ``(G) is a married individual;
       ``(H) has legal dependents other than a spouse;
       ``(I) has been verified as both a homeless child or youth 
     and an unaccompanied youth, as such terms are defined in 
     section 725 of the McKinney-Vento Homeless Assistance Act (42 
     U.S.C. 11434a), during the school year in which the 
     application for financial assistance is submitted, by--
       ``(i) a local educational agency liaison for homeless 
     children and youths, as designated under section 
     722(g)(1)(J)(ii) of the McKinney-Vento Homeless Assistance 
     Act (42 U.S.C. 11432(g)(1)(J)(ii));
       ``(ii) a director of a homeless shelter, transitional 
     shelter, or independent living program; or
       ``(iii) a financial aid administrator; or
       ``(J) is a student for whom a financial aid administrator 
     makes a documented determination of independence by reason of 
     other unusual circumstances.
       ``(2) Simplifying the dependency override process.--Nothing 
     in this subsection shall be construed to prohibit a financial 
     aid administrator from making a determination of independence 
     under paragraph (1)(J) based upon a documented determination 
     of independence under such paragraph that was previously made 
     by another financial aid administrator in the same 
     application year.''.
       (c) Tailoring Electronic Applications for Students With 
     Special Circumstances.--Section 483(a) of the Higher 
     Education Act of 1965 (20 U.S.C. 1090(a)) is amended by 
     adding at the end the following:
       ``(8) Applications for students seeking a documented 
     determination of independence.--In the case of a student 
     seeking a documented determination of independence by a 
     financial aid administrator, as described in section 
     480(d)(1)(J), nothing in this section shall prohibit the 
     Secretary from--
       ``(A) allowing such student to indicate the student's 
     special circumstance on the electronic version of a form 
     developed under paragraph (5);
       ``(B) collecting and processing, on a preliminary basis, 
     data provided by such student using the electronic version of 
     the form; or
       ``(C) distributing such data to States, institutions of 
     higher education, and guaranty agencies for the purposes of 
     processing loan applications and determining need and 
     eligibility for institutional and State financial aid awards 
     for such student on a preliminary basis, pending a documented 
     determination of independence by a financial aid 
     administrator.''.

  TITLE II--FEDERAL EARLY OUTREACH AND STUDENT SERVICES PROGRAMS FOR 
              STUDENTS WHO ARE HOMELESS OR IN FOSTER CARE

                   Subtitle A--Federal TRIO Programs

     SEC. 211. DEFINITION OF HOMELESS CHILDREN AND YOUTHS.

       Section 402A(g) of the Higher Education Act of 1965 (20 
     U.S.C. 1070a-11(g)) is amended--
       (1) by redesignating paragraphs (2) and (3) as paragraphs 
     (3) and (4); and
       (2) by inserting after paragraph (1) the following:
       ``(2) Homeless children and youths.--The term `homeless 
     children and youths' has the meaning given the term in 
     section 725 of the McKinney-Vento Homeless Assistance Act (42 
     U.S.C. 11434a).''.

     SEC. 212. TALENT SEARCH.

       Section 402B(b) of the Higher Education Act of 1965 (20 
     U.S.C. 1070a-12(b)) is amended by striking paragraph (10) and 
     inserting the following:
       ``(10) programs and activities as described in paragraphs 
     (1) through (9) which are specially designed for--
       ``(A) students of limited English proficiency;
       ``(B) students who are homeless children and youths; and
       ``(C) students who are in foster care or are aging out of 
     the foster care system.''.

[[Page 16619]]



     SEC. 213. UPWARD BOUND.

       Section 402C(b) of the Higher Education Act of 1965 (20 
     U.S.C. 1070a-13(b)) is amended by striking paragraph (12) and 
     inserting the following:
       ``(12) programs and activities as described in paragraphs 
     (1) through (11) which are specially designed for--
       ``(A) students of limited English proficiency;
       ``(B) students who are homeless children and youths; and
       ``(C) students who are in foster care or are aging out of 
     the foster care system.''.

     SEC. 214. STUDENT SUPPORT SERVICES.

       Section 402D of the Higher Education Act of 1965 (20 U.S.C. 
     1070a-14) is amended--
       (1) in subsection (a)(3)--
       (A) by striking ``students and'' and inserting 
     ``students,''; and
       (B) by inserting ``, students who are homeless children and 
     youths, and students who are in foster care or are aging out 
     of the foster care system'' before the period; and
       (2) in subsection (b)--
       (A) in paragraph (9), by striking ``and'' after the 
     semicolon;
       (B) by striking paragraph (10) and inserting the following:
       ``(10) programs and activities as described in paragraphs 
     (1) through (9) which are specially designed for--
       ``(A) students of limited English proficiency;
       ``(B) students who are or who were homeless children and 
     youths; and
       ``(C) students who are in foster care or are aging out of 
     the foster care system; and''; and
       (C) by adding at the end the following:
       ``(11) assistance in securing temporary housing for--
       ``(A) students who are, or who were, homeless children and 
     youths; or
       ``(B) students who are in foster care or are aging out of 
     the foster care system.''.

     SEC. 215. EDUCATIONAL OPPORTUNITY CENTERS.

       Section 402F(b) of the Higher Education Act of 1965 (20 
     U.S.C. 1070a-16(b)) is amended by striking paragraph (10) and 
     inserting the following:
       ``(10) programs and activities as described in paragraphs 
     (1) through (9) which are specially designed for--
       ``(A) students of limited English proficiency;
       ``(B) students who are homeless children and youths; and
       ``(C) students who are in foster care or are aging out of 
     the foster care system.''.

     SEC. 216. STAFF DEVELOPMENT ACTIVITIES.

       Section 402G(b)(3) of the Higher Education Act of 1965 (20 
     U.S.C. 1070a-17(b)(3)) is amended by striking ``chapter.'' 
     and inserting ``chapter, including strategies for recruiting 
     and serving students who are homeless children and youths, 
     and students who are in foster care or are aging out of the 
     foster care system.''.

                      Subtitle B--GEAR-UP Programs

     SEC. 221. REQUIREMENTS FOR GAINING EARLY AWARENESS AND 
                   READINESS FOR UNDERGRADUATE PROGRAMS.

       Section 404B(c)(2) of the Higher Education Act of 1965 (20 
     U.S.C. 1070a-22(c)(2)) is amended by striking ``programs.'' 
     and inserting ``programs, including programs under subtitle B 
     of title VII of the McKinney-Vento Homeless Assistance Act 
     (42 U.S.C. 11431 et seq.).''.

     SEC. 222. EARLY INTERVENTION USE OF FUNDS.

       Section 404D(b)(2)(C) of the Higher Education Act of 1965 
     (20 U.S.C. 1070a-24(b)(2)(C)) is amended by inserting ``, for 
     students who are homeless children and youths, as defined in 
     section 725 of the McKinney-Vento Homeless Assistance Act (42 
     U.S.C. 11434a), or for students who are in foster care or are 
     aging out of the foster care system'' before the period.

TITLE III--DEMONSTRATION PROJECTS TO INCREASE ENROLLMENT AND SUCCESS OF 
           HIGHLY MOBILE STUDENTS IN POSTSECONDARY EDUCATION

     SEC. 301. PURPOSE.

       It is the purpose of this title to support demonstration 
     projects in order to--
       (1) increase the secondary school graduation rates of 
     highly mobile students;
       (2) increase the academic success of highly mobile students 
     in secondary school; and
       (3) increase the enrollment and success of highly mobile 
     students in higher education.

     SEC. 302. DEFINITIONS.

       In this title:
       (1) Highly mobile students.--The term ``highly mobile 
     students'' means students who are--
       (A) homeless children and youths, as such term is defined 
     in section 725 of the McKinney-Vento Homeless Assistance Act 
     (42 U.S.C. 11434a); or
       (B) wards of the State.
       (2) Secretary.--The term ``Secretary'' means the Secretary 
     of Education.
       (3) Ward of the state.--The term ``ward of the State'' 
     means a child who--
       (A) is a ward of the State, as determined by the State 
     where the child resides; or
       (B) is in the custody of a public child welfare agency, 
     including situations where the child is residing--
       (i) in a foster family home, group home, or other 
     alternative residential setting; or
       (ii) at home under protective supervision.

     SEC. 303. GRANTS AUTHORIZED.

       (a) Competitive Grants Authorized.--The Secretary may award 
     grants, contracts, and cooperative agreements, on a 
     competitive basis, to--
       (1) partnerships consisting of--
       (A) a State educational agency;
       (B) a State department serving abused and neglected 
     children;
       (C) a State department serving runaway, homeless, or at-
     risk youth;
       (D) a State department serving homeless families or youth; 
     and
       (E) 1 or more degree-granting institutions of higher 
     education; and
       (2) partnerships consisting of--
       (A) 1 or more local educational agencies;
       (B) 1 or more degree-granting institutions of higher 
     education;
       (C) a recipient of a grant under subtitle B of title IV of 
     the McKinney-Vento Homeless Assistance Act (42 U.S.C. 11371 
     et seq.); and
       (D) 2 or more community organizations or entities, such as 
     businesses, community-based organizations, faith-based 
     organizations, State agencies, or other public or private 
     agencies or organizations.
       (b) Duration.--Grants contracts, and cooperative agreements 
     under this title shall be awarded for a period of not more 
     than 3 years.

     SEC. 304. APPLICATIONS.

       Each partnership desiring to receive a grant, contract, or 
     cooperative agreement under this title shall submit an 
     application to the Secretary at such time, in such manner, 
     and accompanied by such information as the Secretary may 
     require. Each application shall include--
       (1) a description of how the partnership plans to carry out 
     the activities required under this title;
       (2) a description of how the partnership will coordinate 
     and collaborate with transportation, education, housing, 
     social services, and child welfare agencies to prevent and 
     reduce school mobility;
       (3) an assurance that all State and local educational 
     agency members of the partnership will comply with the 
     applicable grant recipient requirements of subtitle B of 
     title VII of the McKinney-Vento Homeless Assistance Act (42 
     U.S.C. 11431 et seq.) and section 1113(c)(3)(A) of the 
     Elementary and Secondary Education Act of 1965 (20 U.S.C. 
     6313(c)(3)(A)); and
       (4) an assurance that the partnership will demonstrate 
     that, to the maximum extent practicable, the partnership is--
       (A) utilizing other resources (including Federal, State, 
     and local funds, public transportation, and other community 
     resources) to transport highly mobile students; and
       (B) collaborating with local housing, social services, and 
     child welfare agencies to minimize the need for such 
     transportation.

     SEC. 305. AWARD CONSIDERATIONS.

       In awarding grants, contracts, or cooperative agreements 
     under this title, the Secretary shall consider the following:
       (1) The number of highly mobile students identified in the 
     area proposed to be served by the partnership.
       (2) The extent to which each local educational agency 
     member of the partnership has reserved appropriate funds 
     under section 1113(c)(3)(A) of the Elementary and Secondary 
     Education Act of 1965 (20 U.S.C. 6313(c)(3)(A)) to serve 
     homeless children.
       (3) The extent to which the partnership has demonstrated 
     interagency collaboration among transportation, education, 
     housing, social services, and child welfare agencies.
       (4) Evidence of past successful operation of programs for 
     highly mobile students.

     SEC. 306. AUTHORIZED ACTIVITIES.

       Grants, contracts, and cooperative agreements under this 
     title shall be used to carry out 1 or more of the following 
     activities:
       (1) Services designed to assist highly mobile students in 
     the completion of secondary school and in increasing academic 
     success, such as--
       (A) after-school and summer tutoring;
       (B) academic counseling;
       (C) skills assessment;
       (D) mentoring programs; and
       (E) exposure to cultural events, academic programs, and 
     other activities not usually available to highly mobile 
     students.
       (2) Services designed to assist highly mobile students with 
     matriculation in an institution of higher education, such 
     as--
       (A) academic advice and assistance in course selection;
       (B) assistance in completing college admission and 
     financial aid applications;
       (C) assistance in preparing for college entrance 
     examinations;
       (D) personal counseling; and
       (E) career workshops and counseling.
       (3) Services and strategies to prevent and reduce the 
     mobility of highly mobile students, such as--
       (A) defraying the excess cost of transporting highly mobile 
     students to their schools of origin, as required under 
     paragraphs (1)(J)(iii) and (3)(A) of section 722(g) of the 
     McKinney-Vento Homeless Assistance Act (42 U.S.C. 
     11432(g)(1)(J)(iii) and (3)(A)), except that a grant 
     recipient may not use more than 25 percent of the total grant 
     award received under this title for this use;

[[Page 16620]]

       (B) interagency coordination of services and policies, 
     including transportation, education, housing, social 
     services, and child welfare agencies;
       (C) family counseling, home visits, staff development, 
     outreach, and supportive services; and
       (D) evaluation and dissemination of data, information, and 
     promising practices.

     SEC. 307. AUTHORIZATION OF APPROPRIATIONS.

       There are authorized to be appropriated to carry out this 
     title $20,000,000 for fiscal year 2006 and such sums as may 
     be necessary for each of the 5 succeeding fiscal years.
  Mr. DeWINE. Mr. President, today I join Senator Murray in introducing 
the ``Improving Access to Education for Students Who Are Homeless or in 
Foster Care Act.'' I thank Senator Murray for her deep commitment to 
the education of children who are homeless or in foster care. I have 
worked with her on provisions to promote their access to and completion 
of education in both the Individuals with Disabilities Education Act 
(IDEA) reauthorization and the Head Start Act reauthorization and am 
pleased to have worked with her again on this bill.
  In the United States, on any given day, more than half a million 
children are in foster care--20,000 of whom are in the State of Ohio, 
alone. In 2003, also know that more than 900,000 children were found to 
be victims of child abuse or neglect. More than half of the children in 
foster care experience developmental delays. Children in foster care 
have three to seven times more chronic medical conditions, birth 
defects, emotional disorders, and academic failures than children of 
similar socioeconomic backgrounds who do not enter foster care.
  We also know that homeless children face great barriers to higher 
education. Often, these students have run away from an abusive home, or 
have been lost to the system. These students also may be living on the 
street with a parent--too often with a parent suffering from an 
addiction to alcohol or drugs. These children will move from school to 
school and shelter to shelter, piecing together their education as they 
can. This is not good enough. Although we have tried to reach out to 
these students through the McKinney Vento Homelessness Assistance Act, 
we need to do more. These children deserve a better chance at an 
education.
  Education offers foster care and homeless children their best hope 
for escaping the poverty and instability they experience. This bill 
includes additional outreach to these hard to reach populations through 
current Federal education programs, such as TRIO and GEAR UP. It also 
would expand and clarify the definition of ``Independent Student'' in 
order to accommodate the special circumstances of foster care and 
homeless children and would allow student financial aid administrators 
additional flexibility to help this cohort of students attain access to 
higher education. This bill would create a $20 million demonstration 
grant program targeting foster and homeless children to help decrease 
the barriers to higher education by involving stakeholders and their 
communities in the outreach process.
  I look forward to working with HELP Committee Chairman Enzi to 
incorporate these provisions into the Higher Education Act 
reauthorization bill. I appreciate his willingness to incorporate 
provisions related to homeless and foster children in the Head Start 
Act reauthorization bill, as well. He is equally concerned with the 
welfare of these children. And again, I thank Senator Murray for her 
commitment to these children. We cannot afford to overlook their needs.
                                 ______
                                 
      By Mr. DeWINE (for himself and Mr. Rockefeller):
  S. 1430. A bill to provide loan forgiveness to social workers who 
work for child protective agencies; to the Committee on Health, 
Education, Labor, and Pensions.
                                 ______
                                 
      By Mr. DeWINE (for himself and Mr. Rockefeller):
  S. 1431. A bill to amend the Higher Education Act of 1965 to provide 
loan forgiveness for attorneys who represent low-income families or 
individuals involved in the family domestic relations court system; to 
the Committee on Health, Education, Labor, and Pensions.
                                 ______
                                 
      By Mr. DeWINE (for himself and Mr. Dodd):
  S. 1432. A bill to amend the Higher Education Act of 1965 to improve 
the loan forgiveness program for child providers, including preschool 
teachers, and for other purposes; to the Committee on Health, 
Education, Labor, and Pensions.
                                 ______
                                 
      By Mr. DeWINE:
  S. 1433. A bill to establish a grant program to enable institutions 
of higher education to improve schools of education to better prepare 
teachers to educate all children; to the Committee on Health, 
Education, Labor, and Pensions.
                                 ______
                                 
      By Mr. DeWINE:
  S. 1434. A bill to provide grants to teacher preparation programs at 
institutions of higher education to award scholarships for teachers to 
receive a graduate level degree; to the Committee on Health, Education, 
Labor, and Pensions.
                                 ______
                                 
      By Mr. DeWINE:
  S. 1435. A bill to establish a grant program for institutions of 
higher education to collaborate with low-income schools to recruit 
students to pursue and complete postsecondary degrees in education; to 
the Committee on Health, Education, Labor, and Pensions.
                                 ______
                                 
      By Mr. DeWINE:
  S. 1436. A bill to award grants to eligible entities to enable the 
entities to reduce the rate of underage alcohol use and binge drinking 
among students at institutions of higher education; to the Committee on 
Health, Education, Labor, and Pensions.
  Mr. DeWINE. Mr. President, I join several of my colleagues today to 
introduce a series of bills related to the reauthorization of the 
Higher Education Act (HEA). These bills emphasize a number of issues 
that are vital to higher education, including teacher quality, 
recruitment, and retention; loan forgiveness for social workers, family 
lawyers, and early childhood teachers; and the reduction of drug use 
and underage drinking at our colleges and universities.
  The quality of a student's education is the direct result of the 
quality of that student's teachers. If we don't have well trained 
teachers, then future generations of our children will not be well 
educated. That is why I am introducing a bill ``Ready to Educate All 
Children Act'' that would provide $200 million in grants to our schools 
of education to partner with high-need local schools to ensure that our 
teachers are receiving the best, most extensive training available 
before they enter the classroom.
  Studies find that a majority of graduates of schools of education 
believe that the traditional teacher preparation program left them ill 
prepared for the challenges and rigors of the classroom. Part of the 
responsibility for this lies in the hands of our schools of education. 
However, Congress also has a responsibility to give our schools of 
education the tools they need to make necessary improvements. This new 
bill would create a competitive grant program for schools of education, 
which partner with low-income schools to create clinical programs to 
train teachers. Additionally, it would require schools of education to 
make internal changes by working with other departments at the 
university to ensure that teachers are receiving the highest quality 
education in core academic subjects. Finally, it would require the 
college or university to demonstrate a commitment to improving their 
schools of education by providing matching funds.
  Another bill I am introducing today, is the ``Collaborative 
Agreements to Recruit Educators Act,'' which also would encourage 
improvement in the education of our Nation's low-income students. 
Children raised in poverty have a much more difficult time in finishing 
high school and going on to college. While about seventy percent of 
children in America will graduate from high school, that rate drops to 
fifty percent for low-income students. We know that every day, about 
3,000 children drop out of school. Our Nation's

[[Page 16621]]

inner city schools have some of the lowest rates of graduation. I 
strongly believe that education is one of the most important ways to 
break the cycle of poverty. To break that cycle, we must keep our 
children in school, help them graduate from high school, and increase 
their access to higher education.
  My bill would provide grants for collaborative agreements to between 
local education agencies in low-income communities and to colleges of 
education. These partnerships would work to provide services, such as 
mentoring, tutoring, and scholarships through the college of education 
to the students at the partnering school in order to 1. encourage those 
students to graduate from high school, 2. let them know of 
opportunities within higher education, and (3) encourage them to become 
teachers, which are so badly needed.
  Another complex issue affecting the teaching force is the high 
percentage of disillusioned beginning teachers who leave the field. 
This bill would help combat this issue, as well. Schools of education 
receiving these grants would be responsible for following their 
graduates and continuing to provide assistance after they enter the 
classroom. The more we invest in the education of teachers--especially 
once they have entered the profession--the more likely they will remain 
in the classroom.
  To further help teacher quality and retention, I am introducing a 
bill ``The Master Teacher Scholarship Act''--to establish a Master's in 
Education Scholarship Program. The lack of promotions and salary 
increases are some of the most pervasive reasons for the 
disillusionment of teachers. This disillusionment is becoming a crisis 
as half of teachers leave the profession altogether within their first 
five years of teaching. To both improve the quality of teachers and 
increase their retention, this bill would provide $30 million in grants 
to schools of education to administer scholarships to eligible 
teachers. In return for the scholarships, teachers would agree to teach 
for another five years and mentor a novice teacher for two years.
  Today, along with Senator Dodd, I am introducing the ``Paul Wellstone 
Early Educator Loan Forgiveness Act.'' Our dear friend and colleague, 
Senator Wellstone, and I had been working on this legislation together 
before his tragic death. I know he cared deeply about this issue and 
about making sure that all children receive a quality education. He was 
passionate about that. Though our bill was originally called the 
``Early Care and Education Loan Forgiveness Act,'' we have renamed our 
bill in Paul's memory.
  Our bill would expand the loan forgiveness program so that it 
benefits not just childcare workers, but also early childhood 
educators. This loan forgiveness program would serve as an incentive to 
keep those educators in the field for longer periods of time. Research 
shows that children who attend quality early childcare programs when 
they were three or four years old scored better on math, language arts, 
and social skills in early elementary school than children who attended 
poor quality childcare programs. In short, children in early learning 
programs with high quality teachers--teachers with a Bachelor's degree 
or an Associate's degree or higher--do substantially better.
  When we examine the number and recent growth of pre-primary education 
programs, it becomes difficult to differentiate between early education 
and childcare settings because they are so often intertwined--
especially considering that about 12 million children younger than age 
five spend part of their time with a care provider other than a parent 
and that demand for quality childcare and education is growing as more 
mothers enter the workforce.
  Because this bill targets loan forgiveness to those educators working 
in low-income schools or childcare settings, we can make significant 
strides toward providing high quality education for all of our young 
children, regardless of socioeconomic status. The bill would serve a 
twofold function. First, it would reward professionals for their 
training. Second, it would encourage professionals to remain in the 
profession over longer periods of time, since more time in the 
profession leads to higher percentages of loans forgiveness. The bill 
would result in more educated individuals with more teaching experience 
and lower turnover rates, each of which enhance student performance.
  I encourage my colleagues to join me in this effort to help ensure 
that truly no children--especially our youngest children--are left 
behind.
  I also am working on two bills with my friend and colleague from West 
Virginia, Senator Rockefeller. These bills would provide loan 
forgiveness to students who dedicate their careers to working in the 
realm of child welfare, including social workers, who work for child 
protective services, and family law experts.
  Currently, there aren't enough social workers to fill available jobs 
in the area of child welfare. Furthermore, the number of social work 
job openings is expected to increase faster than the average for all 
occupations through 2010. The need for highly qualified social workers 
in the child protective services is reaching crisis level.
  We also need more qualified individuals focusing on family law. The 
wonderful thing about family law is its focus on rehabilitation--that 
is the rehabilitation of families by helping them through life's 
transitions, whether it is a family going through a divorce, a family 
dealing with their troubled teenager in the juvenile system, or a child 
getting adopted and becoming a member of a new family.
  Across the United States, family, juvenile, and domestic relations 
courts are experiencing a shortage of qualified attorneys. As many of 
my colleagues and I know, law school is an expensive investment. In the 
last 20 years, tuition has increased more than 200 percent. Currently, 
the average rate of law school debt is about $80,000 per graduate. To 
be sure, few law school graduates can afford to work in the public 
sector because debts prevent even the most dedicated public service 
lawyer from being able to take these low-paying jobs. This results in a 
shortage of family lawyers.
  The shortage of family law attorneys also disproportionately impacts 
juveniles. The lack of available representation causes children to 
spend more time in foster care because cases are adjourned or postponed 
when they simply cannot find an attorney to represent their rights or 
those of the parent or guardian. Furthermore, the number of children 
involved in the court system is sharply increasing. We need to ensure 
that the interests of these children are taken care of by making 
certain they have an advocate--someone working solely on their behalf. 
By offering loan forgiveness to those willing to pursue careers in the 
child welfare field, we can increase the number of highly qualified and 
dedicated individuals who work in the realm of child welfare and family 
law.
  Finally, I am introducing a bill today that would help address an 
epidemic--the epidemic of underage drinking on college and university 
campuses across the United States. This bill would provide grants to 
states to establish statewide partnerships among colleges and 
universities and the surrounding communities to work together to reduce 
underage and binge drinking and illicit drug use by students.
  Many States, including my home State of Ohio, have coalitions that 
deal specifically with the culture of alcohol and drug abuse on 
America's college campuses. They work with the surrounding communities, 
including local residents; bar, restaurant, and shop owners; and law 
enforcement officials toward a goal of changing the pervasive culture 
of drug and alcohol abuse. They provide alternative alcohol-free 
events, as well as support groups for those who choose not to drink. 
They also educate students about the dangers of alcohol and drug use.
  Furthermore, the coalitions recognize that while it is important to 
promote an alcohol aware and drug-free campus community, if the 
community surrounding the campus does not promote these initiatives, 
there will be no long-term solutions. Therefore, these

[[Page 16622]]

coalitions also have worked to establish regulations both on and off 
campus, which will help our Nation's youth to stay healthy, alive, and 
get the most out of their time at college. Some of these regulations 
include the registration of kegs. This provides accountability for both 
the store and the student. This is just an example of one step that 
colleges, local communities, and organizations can take.
  To help start the expansion of these coalitions, this bill would 
provide $5 million in grants. This is an important demonstration 
project that would help lead to positive effects for our young people. 
It is up to us to change the culture, which has been perpetuated by 
years of complacency and a dismissal tone of ``that's just the way it 
is in college.'' We must protect the health and education of our young 
people by changing this culture of abuse--and that is exactly what this 
bill would help do.
  I thank all of my colleagues who have worked with me on these bills. 
I look forward to the reauthorization of the Higher Education Act and 
working with Chairman Enzi and Ranking Member Kennedy to incorporate 
these important measures.
                                 ______
                                 
      By Mr. McCAIN (for himself and Mr. Dorgan):
  S. 1439. A bill to provide for Indian trust asset management reform 
and resolution of historical accounting claims, and for other purposes; 
to the Committee on Indian Affairs.
  Mr. McCAIN. Mr. President, I am pleased to introduce the, Indian 
Trust Reform Act of 2005.
  The following is an overview of the bill, title by title, which is 
followed by a discussion of the reasons for the measure.


Title I: Resolution of historical accounting claims in Cobell v. Norton

  Title I of the bill would provide for a lump sum settlement of the 
claims for an historical accounting that have been asserted in the case 
of Cobell v. Norton. The section would establish a Settlement Fund 
which would be administered by the Secretary of the Treasury and a 
Special Master. The total amount of the fund is left blank in this 
introduced version of the bill. The Committee on Indian Affairs will 
hold a hearing on this soon and have further discussions with the 
parties, hopefully to reach a consensus number for the settlement. The 
settlement fund would be distributed to individual Indians using two 
formulas: part of the fund would be distributed among all claimants 
equally, and part would be distributed under a formula that allocates 
funds in accordance with a through-put analysis--account holders with 
high volume accounts would receive more than those with low volume 
accounts. A portion of the fund would be held in reserve for payment of 
attorneys fees at an hourly rate, for administration of the fund and 
for claimants who successfully challenge their distribution in court. 
If any of the reserved funds remain unused, they are to be distributed 
to the claimants under the formula.


    Title II: Indian Trust Asset Management Policy Review Commission

  Title II of the bill establishes and sets forth the duties, 
responsibilities, and authority of a 12-member Indian Trust Asset 
Management Review Commission. The Commission would have two principal 
areas of responsibility: 1. Reviewing all current trust resource 
management laws, (including regulations), and the Secretary of 
Interior's trust resource management practices, and 2. Following that 
review, preparing a report to the Senate Committee on Indian Affairs, 
the House Committee on Resources and the Secretary of Interior 
containing the Commission's recommendations for improving the 
management of those assets.


   Title III: Indian Trust Resource Management Demonstration Project

  Title III of the bill establishes an eight-year Indian Trust Resource 
Management Demonstration Project. The demonstration project would 
initially be open to all Indian tribes participating in section 131 of 
the Fiscal Year 2005 Interior Appropriations Act and an additional 30 
Indian tribes that submit applications to the Secretary. Participating 
tribes would negotiate a ``trust resource management plan'' with the 
Secretary, which would remain in effect for the full duration of the 
demonstration project but would be subject to modification or 
termination annually. A participating tribe would be allowed to 
negotiate with the Department of Interior as to how the trust asset 
management budget for the reservation would be prioritized. Self-
governance tribes participating in the demonstration project would also 
be permitted to develop their own ``customized'' trust asset management 
systems and practices. Trust assets subject to the plan would have to 
be managed in accordance with 1. The Federal trust responsibility and 
2. Certain basic standards set forth in the section. The trust asset 
management plan itself would not create, diminish or increase the 
liability of either the United States or the Indian tribe. The Indian 
tribe would have the right to terminate the plan by giving the 
Secretary notice, but termination would not be effective until the 
beginning of the next fiscal year.


    Title IV: Fractional Interest Purchase and Consolidation Program

  Title IV of the bill would be an amendment to Section 213 of the 
Indian Land Consolidation Act (25 USC 2212). As currently written, 
Section 213 of ILCA authorizes the Secretary to purchase fractional 
interests in land in accordance with certain requirements. One problem 
with this program is that the fractional interests are so small that an 
offer of fair market value is such a small amount of money that there 
is little incentive to sell. Accordingly, the amendment would be a new 
subsection to ILCA Section 213 that would authorize the Secretary to 
offer more than fair market value for fractional interests in tracts of 
land that have 20 or more trust or restricted fractional interests--the 
offer would be fair market value PLUS an additional amount of at least 
$100 but not more than $350.
  Also, this title would add another new subsection to ILCA section 213 
that would authorize the Secretary to offer, along with an offer to 
purchase any interest or interests under section 213, an additional 
amount of money to settle any and all mismanagement claims against the 
United States that the interest owner may have in connection with the 
tract of land of which the fractional interest is a part. The interest 
owner would have the option of selling his or her interest to the 
Secretary with or without a settlement of mismanagement claims, i.e., 
the settlement of mismanagement claims could not be made a mandatory 
condition of the sale of the interest.
  Also included as part of this title is a provision dealing with 
tracts of extremely fractionated land--specifically, tracts of land 
that consist of 200 or more fractional trust interests. If the 
Secretary determines that a tract is owned by 200 or more individuals, 
she is authorized to make the offer (not less than four times fair 
market value) via certified mail to each and every trust interest owner 
in the tract. The offer would include a notice that says they have 90 
days to reject the offer or it will be deemed to have been accepted. It 
would include a pre-addressed (back to the Secretary) postage-paid 
``notice of rejection'' form that the offeree may use to reject the 
offer. If they fail to mail the form back in time, they will be given 
another notice stating that they may withdraw the offer by mailing a 
postage pre-paid ``notice of withdrawal'' form back to the Secretary 
within 30 days. If They fail to do that in time, the offer is deemed to 
be accepted.


 Title V: Restructuring the Bureau of Indian Affairs and Office of the 
                            Special Trustee

  This title of the bill would reorganize the Bureau of Indian Affairs 
and Office of the Special Trustee for American Indians under a new 
office within the Department of Interior, an Under Secretary for Indian 
Affairs. The title provides that the Under Secretary has responsibility 
for the administration of all Indian trust and non-trust matters, 
including, after a transition period ending on December 31, 2008, 
matters currently within the scope of authority of the Special Trustee 
for American Indians under the American Indian Trust

[[Page 16623]]

Fund Management Reform Act of 1994 (25 USC 4041 et seq.). The Under 
Secretary would oversee a new Office of Trust Reform Implementation and 
Oversight, but the Special Trustee would continue performing his duties 
under the 1994 Act until December 31, 2008, at which time the OST would 
be abolished.


    Title VI: Annual Audit of Indian Trust Funds by the Government 
                         Accountability Office

  Title VI of the bill requires the Government Accountability Office to 
contract for an annual audit of all funds held in trust by the United 
States for the benefit of an Indian Tribe or an individual Indian. The 
audit would be conducted in accordance with generally accepted auditing 
principles and the Single Audit Act. Copies of each audit report must 
be submitted to the Secretary of Interior, the Senate Committee on 
Indian Affairs, and the House Committee on Resources.
  Reasons for the bill: the performance of the United States over the 
past 125 years in its capacity as trustee and manager of Indian trust 
and restricted lands is not something to be proud of. The policy of 
allotting Indian tribal lands, which was made the general Federal 
Indian policy in the 1880s, was one of several federal ``experiments'' 
in Indian matters that have had regrettable results both for Native 
Americans and for the Government. This policy of the 19th Century has 
come back to haunt us now in the form of fractionated ownership of 
allotted lands--where some parcels of land are owned by hundreds and in 
some cases over a thousand different Indian owners. This fractionation 
of ownership has led to a proliferation of individual Indian money 
accounts ``IIM accounts,'' now numbering in the hundreds of thousands, 
all of which the Federal Government has a trust obligation to track and 
manage.
  The staggering number of IIM accounts--along with decades of 
mismanagement on the part of Government officials--contributed to the 
conditions that led to the filing of the Federal class action here in 
the District of Columbia known as Cobell v. Norton. A lot has happened 
in that litigation since it was filed 9 years ago, much of it reported 
in newspapers across the country, but I think it is fair to say that 
one thing the case has shown is that the United States has not lived up 
to its duty as a fiduciary to the thousands of Indian beneficiaries of 
IIM accounts.
  The principal objectives of the Cobell case are to obtain a complete 
historical accounting of IIM accounts and to reform the trust itself. 
The Government has been ordered to perform a complete, detailed 
accounting of transactions relating to IIM accounts and to submit and 
implement a plan to reform the trust. In hearings before the Committee 
on Indian Affairs, officials from the Department of Interior have 
stated that the cost of doing the accounting may run in to multiple 
billions of dollars, and representatives of the plaintiffs in the case 
as well as the GAO, have stated that much of this accounting cannot be 
done due to missing or destroyed records, information, or data relating 
to the IIM accounts.
  The bill I introduce today would provide a resolution of the class 
action relating to an historical accounting and would also bring a 
number of important changes to the Indian trust asset management 
system. In lieu of an accounting, the bill would create a settlement 
fund and direct the Secretary of the Treasury to develop a formula for 
distributing the fund to the beneficial owners of IIM accounts in full 
settlement for losses, errors, and unpaid interest in their IIM 
accounts. Several other aspects of the bill are included for the 
purpose of reforming the Indian trust management system. For example, 
the bill would create a special commission charged with the 
responsibility of examining current Indian trust management laws, 
regulations and practices and reporting back to the authorizing 
committees of jurisdiction in the Senate and House with recommended 
revisions of these laws, regulations and practices. It would also 
restructure the Bureau of Indian Affairs under an Under Secretary For 
Indian Affairs, phasing out the Office of the Special Trustee whose 
responsibilities would be transferred to the Under Secretary after 
December 31, 2008.
  I would like to thank the National Congress of American Indians, the 
Inter-Tribal Monitoring Association, the Affiliated Tribes of Northwest 
Indians, representatives of the plaintiffs as well as many other 
stakeholders for their considerable and helpful input in developing 
this legislation. The bill does not include everything that they 
requested, and they may have issues with certain aspects of the bill as 
it is now written. That said, the bill is offered as a starting point 
for discussion. I do not think that there is any provision in the bill 
that is immutable, closed to debate or negotiation. Hopefully the 
stakeholders will remain engaged and continue to provide me with 
information and suggestions to make it a better bill, a bill that 
brings substantial improvements to the administration and management of 
Indian trust assets.
  I look forward to working with my colleagues on both sides of the 
aisle to enact this timely legislation. I ask unanimous consent that 
the full text of the bill be printed in the Record.
  There being no objection, the bill was ordered to be printed in the 
Record, as follows:

                                S. 1439

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

     SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

       (a) Short Title.--This Act may be cited as the ``Indian 
     Trust Reform Act of 2005''.
       (b) Table of Contents.--The table of contents for this Act 
     is as follows:

Sec. 1. Short title; table of contents.

                TITLE I--SETTLEMENT OF LITIGATION CLAIMS

Sec. 101. Findings.
Sec. 102. Definitions.
Sec. 103. Individual Indian Accounting Claim Settlement Fund.
Sec. 104. General distribution.
Sec. 105. Claims relating to share determination.
Sec. 106. Claims relating to method of valuation.
Sec. 107. Claims relating to constitutionality.
Sec. 108. Attorneys' fees.
Sec. 109. Waiver and release of claims.
Sec. 110. Effect of title.

    TITLE II--INDIAN TRUST ASSET MANAGEMENT POLICY REVIEW COMMISSION

Sec. 201. Establishment.
Sec. 202. Membership.
Sec. 203. Meetings and procedures.
Sec. 204. Duties.
Sec. 205. Powers.
Sec. 206. Commission personnel matters.
Sec. 207. Exemption from FACA.
Sec. 208. Authorization of appropriations.
Sec. 209. Termination of Commission.

   TITLE III--INDIAN TRUST ASSET MANAGEMENT DEMONSTRATION PROJECT ACT

Sec. 301. Short title.
Sec. 302. Definitions.
Sec. 303. Establishment of demonstration project; selection of 
              participating Indian tribes.
Sec. 304. Indian trust asset management plan.
Sec. 305. Effect of title.

    TITLE IV--FRACTIONAL INTEREST PURCHASE AND CONSOLIDATION PROGRAM

Sec. 401. Fractional interest program.

 TITLE V--RESTRUCTURING BUREAU OF INDIAN AFFAIRS AND OFFICE OF SPECIAL 
                                TRUSTEE

Sec. 501. Purpose.
Sec. 502. Definitions.
Sec. 503. Under Secretary for Indian Affairs.
Sec. 504. Transfer of functions of Assistant Secretary for Indian 
              Affairs.
Sec. 505. Office of Special Trustee for American Indians.
Sec. 506. Hiring preference.
Sec. 507. Authorization of appropriations.

                 TITLE VI--AUDIT OF INDIAN TRUST FUNDS

Sec. 601. Audits and reports.
Sec. 602. Authorization of appropriations.

                TITLE I--SETTLEMENT OF LITIGATION CLAIMS

     SEC. 101. FINDINGS.

       Congress finds that--
       (1) Congress has appropriated tens of millions of dollars 
     for purposes of providing an historical accounting of funds 
     held in Individual Indian Money accounts;
       (2) as of the date of enactment of this Act, the efforts of 
     the Federal Government in conducting historical accounting 
     activities have provided information regarding the 
     feasibility and cost of providing a complete historical 
     accounting of IIM account funds;
       (3) in the case of many IIM accounts, a complete historical 
     accounting--
       (A) may be impossible because necessary records and 
     accounting data are missing or destroyed;

[[Page 16624]]

       (B) may take several years to perform even if necessary 
     records are available;
       (C) may cost the United States hundreds of millions and 
     possibly several billion dollars; and
       (D) may be impossible to complete before the deaths of many 
     elderly IIM account beneficiaries;
       (4) without a complete historical accounting, it may be 
     difficult or impossible to ascertain the extent of losses in 
     an IIM account as a result of accounting errors or 
     mismanagement of funds, or the correct amount of interest 
     accrued or owned on the IIM account;
       (5) the total cost to the United States of providing a 
     complete historical accounting of an IIM account may exceed--
       (A) the current balance of the IIM account;
       (B) the total sums of money that have passed through the 
     IIM account; and
       (C) the enforceable liability of the United States for 
     losses from, and interest in, the IIM account;
       (6)(A) the delays in obtaining an accounting and in 
     pursuing accounting claims in the case styled Cobell v. 
     Norton, Civil Action No. 96-1285 (RCL) in the United States 
     District Court for the District of Columbia, have created a 
     great hardship on IIM account beneficiaries; and
       (B) many beneficiaries and their representatives have 
     indicated that they would rather receive monetary 
     compensation than experience the continued frustration and 
     delay associated with an accounting of transactions and funds 
     in their IIM accounts;
       (7) it is appropriate for Congress, taking into 
     consideration the findings under paragraphs (1) through (6), 
     to provide benefits that are reasonably calculated to be fair 
     and appropriate in lieu of performing an accounting of an IIM 
     account, or assuming liability for errors in such an 
     accounting, mismanagement of IIM account funds (including 
     undetermined amounts of interest in IIM accounts, losses in 
     which may never be discovered or quantified if a complete 
     historical accounting cannot be performed), or breach of 
     fiduciary duties with respect to the administration of IIM 
     accounts, in order to transmute claims by the beneficiaries 
     of IIM accounts for undetermined or unquantified accounting 
     losses and interest to a fixed amount to be distributed to 
     the beneficiaries of IIM accounts;
       (8) in determining the amount of the payments to be 
     distributed as described in paragraph (7), Congress should 
     take into consideration, in addition to the factors described 
     in paragraphs (1) through (6)--
       (A) the risks and costs to IIM account beneficiaries, as 
     well as any delay, associated with the litigation of claims 
     that will be resolved by this title; and
       (B) the benefits to IIM account beneficiaries available 
     under this title;
       (9) the situation of the Osage Nation is unique because, 
     among other things, income from the mineral estate of the 
     Osage Nation is distributed to individuals through headright 
     interests that belong not only to members of the Osage 
     Nation, but also to members of other Indian tribes, and to 
     non-Indians; and
       (10) due to the unique situation of the Osage Nation, the 
     Osage Nation, on its own behalf, has filed various actions in 
     Federal district court and the United States Court of Federal 
     Claims seeking accountings, money damages, and other legal 
     and equitable relief

     SEC. 102. DEFINITIONS.

       In this title:
       (1) Accounting claim.--The term ``accounting claim'' means 
     any claim for an historical accounting of a claimant against 
     the United States under the Litigation.
       (2) Claimant.--The term ``claimant'' means any beneficiary 
     of an IIM account (including an heir of such a beneficiary) 
     that was living on the date of enactment of the American 
     Indian Trust Fund Management Reform Act of 1994 (25 U.S.C. 
     4001 et seq.).
       (3) IIM account.--The term ``IIM account'' means an 
     Individual Indian Money account administered by the Bureau of 
     Indian Affairs.
       (4) Litigation.--The term ``Litigation'' means the case 
     styled Cobell v. Norton, Civil Action No. 96-1285 (RCL) in 
     the United States District Court for the District of 
     Columbia.
       (5) Secretary.--The term ``Secretary'' means the Secretary 
     of the Treasury.
       (6) Settlement fund.--The term ``Settlement Fund'' means 
     the fund established by section 103(a).
       (7) Special master.--The term ``Special Master'' means the 
     special master appointed by the Secretary under section 
     103(b) to administer the Settlement Fund.

     SEC. 103. INDIVIDUAL INDIAN ACCOUNTING CLAIM SETTLEMENT FUND.

       (a) Establishment.--
       (1) In general.--There is established in the general fund 
     of the Treasury a fund, to be known as the ``Individual 
     Indian Accounting Claim Settlement Fund''.
       (2) Initial deposit.--The Secretary shall deposit into the 
     Settlement Fund to carry out this title not less than 
     $[__],000,000,000 from funds appropriated under section 1304 
     of title 31, United States Code.
       (b) Special Master.--As soon as practicable after the date 
     of enactment of this Act, the Secretary shall appoint a 
     Special Master to administer the Settlement Fund in 
     accordance with this title.
       (c) Distribution.--
       (1) In general.--The Special Master shall use not less than 
     80 percent of amounts in the Settlement Fund to make payments 
     to claimants in accordance with section 104.
       (2) Method of valuation and constitutional claims.--The 
     Special Master may use not to exceed 12 percent of amounts in 
     the Settlement Fund to make payments to claimants described 
     in--
       (A) section 106; or
       (B) section 107.
       (3) Attorneys' fees.--The Special Master may use not to 
     exceed [__] percent of amounts in the Settlement Fund to make 
     payments to claimants for attorneys' fees in accordance with 
     section 108.
       (d) Costs of Administration.--The Secretary may use not 
     more than [__] percent of amounts in the Settlement Fund to 
     pay the costs of--
       (1) administering the Settlement Fund; and
       (2) otherwise carrying out this title.

     SEC. 104. GENERAL DISTRIBUTION.

       (a) Payments to Claimants.--
       (1) In general.--Not later than 1 year after the date on 
     which the Secretary publishes in the Federal Register the 
     regulations described in subsection (d), the Special Master 
     shall distribute to each claimant from the Settlement Fund an 
     amount equal to the sum of--
       (A) the per capita share of the claimant of $[_ 
     _],000,000,000 of the amounts described in section 103(c)(1); 
     and
       (B) of [_ _],000,000,000 of the amounts described in 
     section 103(c)(1), the additional share of the claimant, to 
     be determined in accordance with a formula established by the 
     Secretary under subsection (d)(1).
       (2) Heirs of claimants.--
       (A) In general.--An heir of a claimant shall receive the 
     entire amount distributed to the claimant under paragraphs 
     (1) and (3).
       (B) Multiple heirs.--If a claimant has more than 1 heir, 
     the amount distributed to the claimant under paragraphs (1) 
     and (3) shall be divided equally among the heirs of the 
     claimant.
       (3) Residual amounts.--After making each distribution 
     required under sections 106, 107, and 108, the Special Master 
     shall distribute to claimants the remainder of the amounts 
     described in paragraphs (2) and (3) of section 103(c), in 
     accordance with paragraph (1)(B).
       (b) Requirement for Distribution.--The Special Master shall 
     not make a distribution to a claimant under subsection (a) 
     until the claimant executes a waiver and release of 
     accounting claims against the United States in accordance 
     with section 109.
       (c) Location of Claimants.--
       (1) Responsibility of secretary of the interior.--The 
     Secretary of the Interior shall provide to the Special Master 
     any information, including IIM account information, that the 
     Special Master determines to be necessary to--
       (A) identify any claimant under this title; or
       (B) apply a formula established by the Secretary under 
     subsection (d).
       (2) Claimants of unknown location.--
       (A) In general.--The Special Master shall deposit in an 
     account, for future distribution, amounts under this title 
     for each claimant who--
       (i) is entitled to receive a distribution under this title, 
     as determined by the Special Master; and
       (ii) has not been located by the Special Master as of the 
     date on which a distribution is required under subsection 
     (a)(1).
       (B) Location of claimants.--
       (i) Responsibility of secretary of the interior.--The 
     Secretary of the Interior shall provide to the Special Master 
     any information and assistance necessary to locate a claimant 
     described in subparagraph (A)(ii).
       (ii) Contracts.--The Special Master may enter into 
     contracts with an Indian tribe or an organization 
     representing individual Indians in order to locate a claimant 
     described in subparagraph (A)(ii).
       (d) Regulations.--
       (1) In general.--The Secretary shall promulgate any 
     regulations that the Secretary determines to be necessary to 
     carry out this title, including regulations establishing a 
     formula to determine the share of each claimant of payments 
     under subsection (a)(1).
       (2) Factors for consideration.--In developing the formula 
     described in paragraph (1), the Secretary shall take into 
     consideration the amount of funds that have passed through 
     the IIM account of each claimant during the period beginning 
     on January 1, 1980, and ending on December 31, 2005, or 
     another period, as the Secretary determines to be 
     appropriate.

     SEC. 105. CLAIMS RELATING TO SHARE DETERMINATION.

       (a) In General.--Subject to subsection (b), any claimant 
     may seek judicial review of the determination of the Special 
     Master with respect to the amount of a share payment of a 
     claimant under section 104(a)(1).
       (b) Requirements.--A claimant shall file a claim under 
     subsection (a)--
       (1) not later than 180 days after the date of receipt of a 
     notice by the claimant under subsection (c); and

[[Page 16625]]

       (2) in the United States district court for the district in 
     which the claimant resides.
       (c) Notice.--The Secretary shall provide to each claimant a 
     notice of the right of any claimant to seek judicial review 
     of a determination of the Special Master with respect to the 
     amount of the share payment of the claimant under section 
     105.
       (d) Subsequent Appeals.--A claim relating to a 
     determination of a United States district court relating to 
     an appeal under subsection (a) shall be filed only in the 
     United States Court of Appeals for the District of Columbia.

     SEC. 106. CLAIMS RELATING TO METHOD OF VALUATION.

       (a) In General.--Not later than 1 year after the date of 
     enactment of this Act, a claimant may seek judicial review of 
     the method of distribution of a payment to the claimant under 
     section 104(a).
       (b) Requirements.--A claim under subsection (a)--
       (1) shall not be filed as part of a class action claim 
     against any party; and
       (2) shall be filed only in the United States Court of 
     Federal Claims.
       (c) Available Amounts.--
       (1) In general.--The Special Master shall use only amounts 
     described in section 103(c)(2)(A) to satisfy an award under a 
     claim under this section.
       (2) Payments to claimants.--A claimant that files a claim 
     under this subsection shall not be eligible to receive a 
     distribution under section 104(a).
       (d) Effect of Claim.--The filing of a claim under this 
     section shall be considered to be a waiver by the claimant of 
     any right to an award under section 104.

     SEC. 107. CLAIMS RELATING TO CONSTITUTIONALITY.

       (a) In General.--Any claimant may seek judicial review in 
     the United States District Court for the District of Columbia 
     of the constitutionality of the application of this title to 
     an individual claimant.
       (b) Procedure.--
       (1) Judicial panel.--A claim under this section shall be 
     determined by a panel of 3 judges, to be appointed by the 
     chief judge of the United States District Court for the 
     District of Columbia.
       (2) Consolidation of claims.--
       (A) In general.--The judicial panel may consolidate claims 
     under this section, as the judicial panel determines to be 
     appropriate.
       (B) Prohibition of class action cases.--A claim under this 
     section shall not be filed as part of a class action claim 
     against any party.
       (3) Determination.--The judicial panel may award a claimant 
     such relief as the judicial panel determines to be 
     appropriate, including monetary compensation.
       (c) Available Amounts.--
       (1) In general.--The Special Master shall use only amounts 
     described in section 103(c)(2)(B) to satisfy an award under a 
     claim under this section.
       (2) Payments to claimants.--A claimant that files a claim 
     under this subsection shall not be eligible to receive a 
     distribution under section 104(a).
       (d) Effect of Claim.--The filing of a claim under this 
     section shall be considered to be a waiver by the claimant of 
     any right to an award under section 104.

     SEC. 108. ATTORNEYS' FEES.

       (a) In General.--The Special Master may use amounts 
     described in section 103(c)(3) to make payments to claimants 
     for costs and attorneys' fees incurred under the Litigation 
     before the date of enactment of this Act, or in connection 
     with a claim under section 104, at a rate not to exceed $[__] 
     per hour.
       (b) Requirements.--
       (1) In general.--The Special Master may make a payment 
     under subsection (a) only if, as of the date on which the 
     Special Master makes the payment, the applicable costs and 
     attorneys' fees have not been paid by the United States 
     pursuant to a court order.
       (2) Action by attorneys.--To receive a payment under 
     subsection (a), an attorney of the claimant shall submit to 
     the Special Master a written claim for costs or fees under 
     the Litigation.

     SEC. 109. WAIVER AND RELEASE OF CLAIMS.

       (a) In General.--In order to receive an award under this 
     title, a claimant shall execute and submit to the Special 
     Master a waiver and release of claims under this section.
       (b) Contents.--A waiver and release under subsection (a) 
     shall contain a statement that the claimant waives and 
     releases the United States (including any officer, official, 
     employee, or contractor of the United States) from any legal 
     or equitable claim under Federal, State, or other law 
     (including common law) relating to any accounting of funds in 
     the IIM account of the claimant on or before the date of 
     enactment of this Act.

     SEC. 110. EFFECT OF TITLE.

       (a) Substitution of Benefits.--
       (1) In general.--The benefits provided under this title 
     shall be considered to be provided in lieu of any claims 
     under Federal, State, or other law originating before the 
     date of enactment of this Act for--
       (A) losses as a result of accounting errors relating to 
     funds in an IIM account;
       (B) mismanagement of funds in an IIM account; or
       (C) interest accrued or owed in connection with funds in an 
     IIM account.
       (2) Limitation of claims.--Except as provided in this 
     title, and notwithstanding any other provision of law, a 
     claimant shall not maintain an action in any Federal, State, 
     or other court for an accounting claim originating before the 
     date of enactment of this Act.
       (3) Jurisdiction of courts.--
       (A) In general.--Except as otherwise provided in this 
     title, no court shall have jurisdiction over a claim filed by 
     an individual or group for the historical accounting of funds 
     in an IIM account on or before the date of enactment of this 
     Act, including any such claim that is pending on the date of 
     enactment of this Act.
       (B) Limitation.--This paragraph does not prevent a court 
     from ordering an accounting in connection with an action 
     relating to the mismanagement of trust resources that are not 
     funds in an IIM account on or before the date of enactment of 
     this Act.
       (b) Acceptance as Waiver.--The acceptance by a claimant of 
     a benefit under this title shall be considered to be a waiver 
     by the claimant of any accounting claim that the claimant has 
     or may have relating to the IIM account of the claimant.
       (c) Receipt of Payments Have No Impact on Benefits Under 
     Other Federal Programs.--The receipt of a payment by a 
     claimant under this title shall not be--
       (1) subject to Federal or State income tax; or
       (2) treated as benefits or otherwise taken into account in 
     determining the eligibility of the claimant for, or the 
     amount of benefits under, any other Federal program, 
     including the social security program, the medicare program, 
     the medicaid program, the State children's health insurance 
     program, the food stamp program, or the Temporary Assistance 
     for Needy Families program.
       (d) Certain Claims.--Nothing in this title precludes any 
     court from granting any legal or equitable relief in an 
     action by an Indian tribe or Indian nation against the United 
     States, or an officer of the United States, filed or pending 
     on or before the date of enactment of this Act, seeking an 
     accounting, money damages, or any other relief relating to a 
     tribal trust account or trust asset or resource.

    TITLE II--INDIAN TRUST ASSET MANAGEMENT POLICY REVIEW COMMISSION

     SEC. 201. ESTABLISHMENT.

       There is established a commission, to be known as the 
     ``Indian Trust Asset Management Policy Review Commission,'' 
     (referred to in this title as the ``Commission''), for the 
     purposes of--
       (1) reviewing trust asset management laws (including 
     regulations) in existence on the date of enactment of this 
     Act governing the management and administration of individual 
     Indian and Indian tribal trust assets;
       (2) reviewing the management and administration practices 
     of the Department of the Interior with respect to individual 
     Indian and Indian tribal trust assets; and
       (3) making recommendations to the Secretary of the Interior 
     and Congress for improving those laws and practices.

     SEC. 202. MEMBERSHIP.

       (a) In General.--The Commission shall be composed of 12 
     members, of whom--
       (1) 4 shall be appointed by the President;
       (2) 2 shall be appointed by the Majority Leader of the 
     Senate;
       (3) 2 shall be appointed by the Minority Leader of the 
     Senate;
       (4) 2 shall be appointed by the Speaker of the House of 
     Representatives; and
       (5) 2 shall be appointed by the Minority Leader of the 
     House of Representatives.
       (b) Qualifications.--The membership of the Commission shall 
     include--
       (1) at least 6 members who are representatives of federally 
     recognized Indian tribes with reservation land or other trust 
     land that is managed for--
       (A) grazing;
       (B) fishing; or
       (C) crop, timber, mineral, or other resource production 
     purposes;
       (2) at least 1 member (including any member described in 
     paragraph (1)) who is or has been the beneficial owner of an 
     individual Indian monies account; and
       (3) at least 4 members who have experience in--
       (A) Indian trust resource (excluding a financial resource) 
     management;
       (B) fiduciary investment management;
       (C) financial asset management; and
       (D) Federal law and policy relating to Indians.
       (c) Date of Appointments.--
       (1) In general.--The appointment of a member of the 
     Commission shall be made not later than 90 days after the 
     date of enactment of this Act.
       (2) Failures to appoint.--A failure to make an appointment 
     in accordance with paragraph (1) shall not affect the powers 
     or duties of the Commission if sufficient members are 
     appointed to establish a quorum.
       (d) Term; Vacancies.--
       (1) Term.--A member shall be appointed for the life of the 
     Commission.
       (2) Vacancies.--A vacancy on the Commission--
       (A) shall not affect the powers or duties of the 
     Commission; and
       (B) shall be filled in the same manner as the original 
     appointment was made.

[[Page 16626]]



     SEC. 203. MEETINGS AND PROCEDURES.

       (a) Initial Meeting.--Not later than 150 days after the 
     date of enactment of this Act, the Commission shall hold the 
     initial meeting of the Commission to--
       (1) elect a Chairperson; and
       (2) establish procedures for the conduct of business of the 
     Commission, including public hearings.
       (b) Subsequent Meetings.--The Commission shall meet at the 
     call of the Chairperson.
       (c) Quorum.--7 members of the Commission shall constitute a 
     quorum, but a lesser number of members may hold hearings.
       (d) Chairperson.--The Commission shall elect a Chairperson 
     from among the members of the Commission.

     SEC. 204. DUTIES.

       (a) Reviews and Assessments.--The Commission shall review 
     and assess--
       (1) Federal laws (including regulations) applicable or 
     relating to the management and administration of Indian trust 
     assets; and
       (2) the practices of the Department of the Interior 
     relating to the management and administration of Indian trust 
     assets.
       (b) Consultation.--In conducting the reviews and 
     assessments under subsection (a), the Commission shall 
     consult with--
       (1) the Secretary of the Interior;
       (2) federally recognized Indian tribes; and
       (3) organizations that represent the interests of 
     individual owners of Indian trust assets.
       (c) Recommendations.--After conducting the reviews and 
     assessments under subsection (a), the Commission shall 
     develop recommendations with respect to--
       (1) changes to Federal law that would improve the 
     management and administration of Indian trust assets by the 
     Secretary of the Interior;
       (2) changes to Indian trust asset management and 
     administration practices that would--
       (A) better protect and conserve Indian trust assets;
       (B) improve the return on those assets to individual Indian 
     and Indian tribal beneficiaries; or
       (C) improve the level of security of individual Indian and 
     Indian tribal money account data and assets; and
       (3) proposed Indian trust asset management standards that 
     are consistent with any Federal law that is otherwise 
     applicable to the management and administration of the 
     assets.
       (d) Report.--Not later than 2 years after the date on which 
     the Commission holds the initial meeting, the Commission 
     shall submit to the Committee on Indian Affairs of the 
     Senate, the Committee on Resources of the House of 
     Representatives, and the Secretary of the Interior a report 
     that includes--
       (1) an overview and the results of the reviews and 
     assessments under subsection (a); and
       (2) any recommendations of the Commission under subsection 
     (c).

     SEC. 205. POWERS.

       (a) Hearings.--The Commission may hold such hearings, meet 
     and act at such times and places, take such testimony, and 
     receive such evidence as the Chairperson determines to be 
     appropriate to carry out this title.
       (b) Information From Federal Agencies.--
       (1) In general.--The Commission may secure directly from a 
     Federal agency such information as the Chairperson determines 
     to be necessary to carry out this title.
       (2) Provision of information.--On request of the 
     Chairperson, the head of a Federal agency shall provide 
     information to the Commission.
       (c) Access to Personnel.--For purposes of carrying out this 
     title, the Commission shall have reasonable access to staff 
     responsible for Indian trust asset management and 
     administration of--
       (1) the Department of the Interior;
       (2) the Department of the Treasury; and
       (3) the Department of Justice.
       (d) Postal Services.--The Commission may use the United 
     States mail in the same manner and under the same conditions 
     as other Federal agencies.
       (e) Gifts.--The Commission may accept, use, and dispose of 
     gifts or donations of services or property to the same extent 
     and under the same conditions as other Federal agencies.

     SEC. 206. COMMISSION PERSONNEL MATTERS.

       (a) Compensation of Members.--
       (1) Non-federal employees.--A member of the Commission who 
     is not an officer or employee of the Federal Government shall 
     be compensated at a rate equal to the daily equivalent of the 
     annual rate of basic pay prescribed for level IV of the 
     Executive Schedule under section 5315 of title 5, United 
     States Code, for each day (including travel time) during 
     which the member is engaged in the performance of the duties 
     of the Commission.
       (2) Federal employees.--A member of the Commission who is 
     an officer or employee of the Federal Government shall serve 
     without compensation in addition to the compensation received 
     for the services of the member as an officer or employee of 
     the Federal Government.
       (b) Travel Expenses.--A member of the Commission shall be 
     allowed travel expenses, including per diem in lieu of 
     subsistence, at rates authorized for an employee of an agency 
     under subchapter I of chapter 57 of title 5, United States 
     Code, while away from home or regular place of business of 
     the member in the performance of the duties of the 
     Commission.
       (c) Staff.--
       (1) In general.--The Chairperson may, without regard to the 
     civil services laws (including regulations), appoint and 
     terminate an executive director and such other additional 
     personnel as are necessary to enable the Commission to 
     perform the duties of the Commission.
       (2) Confirmation of executive director.--The employment of 
     an executive director shall be subject to confirmation by the 
     Commission.
       (3) Compensation.--
       (A) In general.--Except as provided in subparagraph (B), 
     the Chairperson may fix the compensation of the executive 
     director and other personnel without regard to the provisions 
     of chapter 51 and subchapter III of title 5, United States 
     Code, relating to classification of positions and General 
     Schedule pay rates.
       (B) Maximum rate of pay.--The rate of pay for the executive 
     director and other personnel shall not exceed the rate 
     payable for level V of the Executive Schedule under section 
     5316 of title 5, United States Code.

     SEC. 207. EXEMPTION FROM FACA.

       The Federal Advisory Committee Act (5 U.S.C. App.) shall 
     not apply to the Commission if all hearings of the Commission 
     are held open to the public.

     SEC. 208. AUTHORIZATION OF APPROPRIATIONS.

       There are authorized to be appropriated such sums as are 
     necessary to carry out this title.

     SEC. 209. TERMINATION OF COMMISSION.

       The Commission and the authority of the Commission under 
     this title shall terminate on the date that is 3 years after 
     the date on which the Commission holds the initial meeting of 
     the Commission.

   TITLE III--INDIAN TRUST ASSET MANAGEMENT DEMONSTRATION PROJECT ACT

     SEC. 301. SHORT TITLE.

       This title may be cited as the ``Indian Trust Asset 
     Management Demonstration Project Act of 2005''.

     SEC. 302. DEFINITIONS.

       In this title:
       (1) Project.--The term ``Project'' means the Indian trust 
     asset management demonstration project established under 
     section 303(a).
       (2) Other indian tribe.--The term ``other Indian tribe'' 
     means an Indian tribe that--
       (A) is federally recognized;
       (B) is not a section 131 Indian tribe; and
       (C) submits an application under section 303(c).
       (3) Secretary.--The term ``Secretary'' means the Secretary 
     of the Interior.
       (4) Section 131 indian tribe.--The term ``section 131 
     Indian tribe'' means any Indian tribe that is participating 
     in the demonstration project under section 131 of title III, 
     division E of the Consolidated Appropriations Act, 2005 
     (Public Law 108-447; 118 Stat. 2809).

     SEC. 303. ESTABLISHMENT OF DEMONSTRATION PROJECT; SELECTION 
                   OF PARTICIPATING INDIAN TRIBES.

       (a) In General.--The Secretary shall establish and carry 
     out an Indian trust asset management demonstration project, 
     in accordance with this title.
       (b) Selection of Participating Indian Tribes.--
       (1) Section 131 indian tribes.--A section 131 Indian tribe 
     shall be eligible to participate in the Project if the 
     section 131 Indian tribe submits to the Secretary an 
     application under subsection (c).
       (2) Other tribes.--
       (A) In general.--Any other Indian tribe shall be eligible 
     to participate in the Project if--
       (i) the other Indian tribe submits to the Secretary an 
     application under subsection (c); and
       (ii) the Secretary approves the application of the other 
     Indian tribe.
       (B) Limitation.--
       (i) 30 or fewer applicants.--If 30 or fewer other Indian 
     tribes submit applications under subsection (c), each of the 
     other Indian tribes shall be eligible to participate in the 
     Project.
       (ii) More than 30 applicants.--

       (I) In general.--If more than 30 other Indian tribes submit 
     applications under subsection (c), the Secretary shall select 
     30 other Indian tribes to participate in the Project.
       (II) Preference.--In selecting other Indian tribes under 
     subclause (I), the Secretary shall give preference to other 
     Indian tribes the applications of which were first received 
     by the Secretary.

       (3) Notice.--
       (A) In general.--The Secretary shall provide a written 
     notice to each Indian tribe selected to participate in the 
     Project.
       (B) Contents.--A notice under subparagraph (A) shall 
     include--
       (i) a statement that the application of the Indian tribe 
     has been approved by the Secretary; and
       (ii) a requirement that the Indian tribe shall submit to 
     the Secretary a proposed Indian trust asset management plan 
     in accordance with section 304.

[[Page 16627]]

       (c) Application.--
       (1) In general.--To be eligible to participate in the 
     Project, an Indian tribe shall submit to the Secretary a 
     written application in accordance with paragraph (2).
       (2) Requirements.--The Secretary shall take into 
     consideration an application under this subsection only if 
     the application--
       (A) includes a copy of a resolution or other appropriate 
     action by the governing body of the Indian tribe, as 
     determined by the Secretary, in support of or authorizing the 
     application;
       (B) is received by the Secretary by the date that is 180 
     days after the date of enactment of this Act; and
       (C) states that the Indian tribe is requesting to 
     participate in the Project.
       (d) Duration.--The Project shall remain in effect for a 
     period of 8 years after the date of enactment of this Act.

     SEC. 304. INDIAN TRUST ASSET MANAGEMENT PLAN.

       (a) Proposed Plan.--
       (1) Submission.--
       (A) In general.--Not later than 120 days after the date on 
     which an Indian tribe receives a notice from the Secretary 
     under section 303(b)(3), the Indian tribe shall submit to the 
     Secretary a proposed Indian trust asset management plan in 
     accordance with paragraph (2).
       (B) Time limitations.--
       (i) In general.--Except as provided in clause (ii), any 
     Indian tribe that fails to submit the Indian trust asset 
     management plan of the Indian tribe by the date specified in 
     subparagraph (A) shall no longer be eligible to participate 
     in the Project.
       (ii) Extension.--The Secretary shall grant an extension of 
     not more than 60 days to an Indian tribe if the Indian tribe 
     submits a written request for such an extension before the 
     date described in subparagraph (A).
       (2) Contents.--A proposed Indian trust asset management 
     plan shall include provisions that--
       (A) identify the trust assets that will be subject to the 
     plan, including financial and nonfinancial trust assets;
       (B) establish trust asset management objectives and 
     priorities for Indian trust assets that are located within 
     the reservation, or otherwise subject to the jurisdiction, of 
     the Indian tribe;
       (C) allocate trust asset management funding that is 
     available for the Indian trust assets subject to the plan in 
     order to meet the trust asset management objectives and 
     priorities;
       (D) if the Indian tribe has contracted or compacted 
     functions or activities under the Indian Self-Determination 
     and Education Assistance Act (25 U.S.C. 450 et seq.) relating 
     to the management of trust assets--
       (i) identify the functions or activities that are being 
     performed by the Indian tribe under the contracts or 
     compacts; and
       (ii) describe the proposed management systems, practices, 
     and procedures that the Indian tribe will follow; and
       (E) establish procedures for nonbinding mediation or 
     resolution of any dispute between the Indian tribe and the 
     United States relating to the trust asset management plan.
       (3) Authority of indian tribes to develop systems, 
     practices, and procedures.--For purposes of preparing and 
     carrying out a management plan under this section, an Indian 
     tribe that has compacted or contracted activities or 
     functions under the Indian Self-Determination and Education 
     Assistance Act (25 U.S.C. 450 et seq.), for purposes of 
     carrying out the activities or functions, may develop and 
     carry out trust asset management systems, practices, and 
     procedures that differ from any such systems, practices, and 
     procedures used by the Secretary in managing the trust assets 
     if the systems, practices, and procedures of the Indian tribe 
     meet the requirements of the laws, standards, and 
     responsibilities described in subsection (c).
       (4) Technical assistance and information.--The Secretary 
     shall provide to an Indian tribe any technical assistance and 
     information, including budgetary information, that the Indian 
     tribe determines to be necessary for preparation of a 
     proposed plan on receipt of a written request from the Indian 
     tribe.
       (b) Approval and Disapproval of Proposed Plans.--
       (1) Approval.--
       (A) In general.--Not later than 120 days after the date on 
     which an Indian tribe submits a proposed Indian trust asset 
     management plan under subsection (a), Secretary shall approve 
     or disapprove the proposed plan.
       (B) Requirements for disapproval.--The Secretary shall 
     approve a proposed plan unless the Secretary determines 
     that--
       (i) the proposed plan fails to address a requirement under 
     subsection (a)(2);
       (ii) the proposed plan includes 1 or more provisions that 
     are inconsistent with subsection (c); or
       (iii) the cost of implementing the proposed plan exceeds 
     the amount of funding available for the management of trust 
     assets that would be subject to the proposed plan.
       (2) Action on disapproval.--
       (A) Notice.--If the Secretary disapproves a proposed plan 
     under paragraph (1)(B), the Secretary shall provide to the 
     Indian tribe a written notice of the disapproval, including 
     any reason why the proposed plan was disapproved.
       (B) Action by tribes.--An Indian tribe the proposed plan of 
     which is disapproved under paragraph (1)(B) may resubmit an 
     amended proposed plan not later than 90 days after the date 
     on which the Indian tribe receives the notice under 
     subparagraph (A).
       (3) Failure to approve or disapprove.--If the Secretary 
     fails to approve or disapprove a proposed plan in accordance 
     with paragraph (1), the plan shall be considered to be 
     disapproved under clauses (i) and (ii) of paragraph (1)(B).
       (4) Judicial review.--An Indian tribe may seek judicial 
     review of the determination of the Secretary in accordance 
     with subchapter II of chapter 5, and chapter 7, of title 5, 
     United States Code (commonly known as the ``Administrative 
     Procedure Act'') if--
       (A) the Secretary disapproves the proposed plan of the 
     Indian tribe under paragraph (1) or (3); and
       (B) the Indian tribe has exhausted any other administrative 
     remedy available to the Indian tribe.
       (c) Applicable Laws; Standards; Trust Responsibility.--
       (1) Applicable laws.--An Indian trust asset management 
     plan, and any activity carried out under the plan, shall not 
     be approved unless the proposed plan is consistent with--
       (A) all Federal treaties, statutes, regulations, Executive 
     orders, and court decisions that are applicable to the trust 
     assets, or the management of the trust assets, identified in 
     the plan; and
       (B) all tribal laws that are applicable to the trust 
     assets, or the management of trust assets, identified in the 
     plan, except to the extent that the laws are inconsistent 
     with the treaties, statutes, regulations, Executive orders, 
     and court decisions referred to in subparagraph (A).
       (2) Standards.--Subject to the laws referred to in 
     paragraph (1)(A), an Indian trust asset management plan shall 
     not be approved unless the Secretary determines that the plan 
     will--
       (A) protect trust assets from loss, waste, and unlawful 
     alienation;
       (B) promote the interests of the beneficial owner of the 
     trust asset;
       (C) conform, to the maximum extent practicable, to the 
     preferred use of the trust asset by the beneficial owner, 
     unless the use is inconsistent with a treaty, statute, 
     regulation, Executive order, or court decision referred to in 
     paragraph (1)(A);
       (D) protect any applicable treaty-based fishing, hunting 
     and gathering, and similar rights relating to the use, 
     access, or enjoyment of a trust asset; and
       (E) require that any activity carried out under the plan be 
     carried out in good faith and with loyalty to the beneficial 
     owner of the trust asset.
       (3) Trust responsibility.--An Indian trust asset management 
     plan shall not be approved unless the Secretary determines 
     that the plan is consistent with the trust responsibility of 
     the United States to the Indian tribe and individual Indians.
       (d) Termination of Plan.--
       (1) In general.--An Indian tribe may terminate an Indian 
     trust asset management plan on any date after the date on 
     which a proposed Indian trust asset management plan is 
     approved by providing to the Secretary--
       (A) a notice of the intent of the Indian tribe to terminate 
     the plan; and
       (B) a resolution of the governing body of the Indian tribe 
     authorizing the termination of the plan.
       (2) Effective date.--A termination of an Indian trust asset 
     management plan under paragraph (1) takes effect on October 1 
     of the first fiscal year following the date on which a notice 
     is provided to the Secretary under paragraph (1)(A).

     SEC. 305. EFFECT OF TITLE.

       (a) Liability.--Nothing in this title, or a trust asset 
     management plan approved under section 304, shall 
     independently diminish, increase, create, or otherwise affect 
     the liability of the United States or an Indian tribe 
     participating in the Project for any loss resulting from the 
     management of an Indian trust asset under an Indian trust 
     asset management plan.
       (b) Effect on Other Laws.--Nothing in this title amends or 
     otherwise affects the application of any treaty, statute, 
     regulation, Executive order, or court decision that is 
     applicable to Indian trust assets or the management or 
     administration of Indian trust assets, including the Indian 
     Self-Determination and Education Assistance Act (25 U.S.C. 
     450 et seq.).
       (c) Trust Responsibility.--Nothing in this title diminishes 
     or otherwise affects the trust responsibility of the United 
     States to Indian tribes and individual Indians.

    TITLE IV--FRACTIONAL INTEREST PURCHASE AND CONSOLIDATION PROGRAM

     SEC. 401. FRACTIONAL INTEREST PROGRAM.

       Section 213 of the Indian Land Consolidation Act (25 U.S.C. 
     2212) is amended--
       (1) by redesignating subsection (d) as subsection (h); and
       (2) by inserting after subsection (c) the following:
       ``(d) Purchase of Interests in Fractionated Indian Land.--

[[Page 16628]]

       ``(1) Incentives.--In acquiring an interest under this 
     section in any parcel of land that includes undivided trust 
     or restricted interests owned by not less than 20 separate 
     individuals, as determined by the Secretary, the Secretary 
     may include in the offered purchase price for the interest, 
     in addition to fair market value, an amount not less than 
     $100 and not to exceed $350, as an incentive for the owner to 
     sell the interest to the Secretary.
       ``(2) Sale of all trust or restricted interests.--If an 
     individual agrees to sell to the Secretary all trust or 
     restricted interests owned by the individual, the Secretary 
     may include in the offered purchase price, in addition to 
     fair market value and the incentive described in paragraph 
     (1), an amount not to exceed $2,000, as the Secretary 
     determines to be appropriate, taking into consideration the 
     avoided costs to the United States of probating the estate of 
     the individual or an heir of the individual.
       ``(e) Certain Parcels of Highly Fractionated Indian Land.--
       ``(1) Definition of offeree.--In this subsection, the term 
     `offeree' does not include the Indian tribe that has 
     jurisdiction over a parcel of land for which an offer is 
     made.
       ``(2) Offer to purchase.--
       ``(A) In general.--If the Secretary determines that a tract 
     of land consists of not less than 200 separate undivided 
     trust or restricted interests, the Secretary may offer to 
     purchase the interests in the tract, in accordance with this 
     subsection, for an amount equal to the sum of--
       ``(i) the fair market value of the interests; and
       ``(ii) an additional amount, to be determined by the 
     Secretary, not less than triple the fair market value of the 
     interest.
       ``(B) Requirement.--The Secretary shall make an offer under 
     subparagraph (A) not later than 3 days before the date on 
     which the Secretary mails a notice of the offer to the 
     offeree under paragraph (3).
       ``(3) Notice of offer.--
       ``(A) In general.--The Secretary shall provide to an 
     offeree, by certified mail to the last known address of the 
     offeree, a notice of any offer to purchase land under this 
     subsection.
       ``(B) Inclusions.--A notice under subparagraph (A) shall 
     include in plain language, as determined by the Secretary--
       ``(i) the date on which the offer was made;
       ``(ii) the name of the offeree;
       ``(iii) the location of the tract of land containing the 
     interest that is the subject of the offer;
       ``(iv) the size of the interest of the offeree, expressed 
     in terms of a fraction or a percentage of the tract of land 
     described in clause (iii);
       ``(v) the fair market value of the tract of land described 
     in clause (iii);
       ``(vi) the fair market value of the interest of the 
     offeree;
       ``(vii) the amount offered for the interest in addition to 
     fair market value under paragraph (2)(A)(ii);
       ``(viii) a statement that the offeree shall be considered 
     to have accepted the offer for the amount stated in the 
     notice unless a notice of rejection form is deposited in the 
     United States mail not later than 90 days after the date on 
     which the offer is received; and
       ``(ix) a self-addressed, postage pre-paid notice of 
     rejection form.
       ``(4) Treatment of offer.--
       ``(A) In general.--An offer made under this subsection 
     shall be considered to be accepted by the offeree if--
       ``(i) the certified mail receipt for the offer is signed by 
     the offeree; and
       ``(ii) the notice of rejection form described in paragraph 
     (3)(B)(ix) is not deposited in the United States mail by the 
     date that is 90 days after the date on which the offer is 
     received.
       ``(B) Rejection.--An offer made under this subsection shall 
     be considered to be rejected by the offeree if--
       ``(i) the notice of rejection form described in paragraph 
     (3)(B)(ix) is deposited in the United States mail by the date 
     that is 90 days after the date on which the offer is 
     received; or
       ``(ii) the certified mail receipt for the offer is returned 
     to the Secretary unsigned by the offeree.
       ``(5) Withdrawal of acceptance; notice.--
       ``(A) Withdrawal of acceptance.--A person that is 
     considered to have accepted an offer under paragraph (4)(A) 
     may withdraw the acceptance by depositing in the United 
     States mail a notice of withdrawal of acceptance form by the 
     date that is 30 days after the date of receipt of the notice 
     under subparagraph (B).
       ``(B) Notice.--The Secretary shall provide to any person 
     that is considered to have accepted an offer under paragraph 
     (4)(A), by certified mail, restricted delivery, to the last 
     known address of the person, a preaddressed, postage prepaid 
     withdrawal of acceptance form and a notice stating that--
       ``(i) the offer made to the person is considered to be 
     accepted; and
       ``(ii) the person has the right to withdraw the acceptance 
     by depositing in the United States mail the notice of 
     withdrawal of acceptance form by the date that is 30 days 
     after the date on which the notice was delivered to the 
     person.
       ``(6) Notice of acceptance and right to appeal.--The 
     Secretary shall provide to any person that has been served 
     with a notice under paragraph (5)(B) and fails to withdraw 
     the acceptance of the offer in accordance with paragraph 
     (5)(A), by first class mail to the last known address of the 
     person, a notice stating that--
       ``(A) the offer made to the person is considered to be 
     accepted and not timely withdrawn; and
       ``(B) after exhausting all administrative remedies, the 
     person may appeal any determination of the Secretary in 
     accordance with paragraph (7).
       ``(7) Judicial review.--A person described in paragraph (6) 
     may appeal any determination of the Secretary with respect 
     to--
       ``(A) the number of owners of undivided interests in a 
     tract of land required under paragraph (2);
       ``(B) the fair market value of a tract of land or interest 
     in land;
       ``(C) the date on which a notice of rejection form was 
     deposited in the United States mail under paragraph 
     (4)(B)(i); or
       ``(D) the date on which a notice of withdrawal of 
     acceptance form was deposited in the United States mail under 
     paragraph (5)(A).
       ``(f) Offer to Settle Claims Against the United States.--
       ``(1) In general.--The Secretary may make an offer to any 
     individual owner (not including an Indian tribe) of a trust 
     or restricted interest in a tract of land to settle any claim 
     that the owner may have against the United States relating to 
     the specific tract of land of which the interest is a part 
     (not including a claim for an accounting described in title I 
     of the Indian Trust Reform Act of 2005).
       ``(2) Requirements.--An offer to settle claims under this 
     subsection shall--
       ``(A) be in writing;
       ``(B) be delivered to an individual owner by the Secretary 
     in person or through first class mail; and
       ``(C) include--
       ``(i) the name of the individual owner;
       ``(ii) a description of the tract of land to which the 
     offer relates;
       ``(iii) the amount offered to settle a claim of the 
     individual owner;
       ``(iv) the manner and date by which the individual owner 
     shall accept the offer;
       ``(v) a statement that the individual owner is under no 
     obligation to accept the offer;
       ``(vi) a statement that the individual owner has the right 
     to consult an attorney or other advisor before accepting the 
     offer;
       ``(vii) a statement that acceptance of the offer by the 
     individual owner will result in a full and final settlement 
     of all claims, known and unknown, of the individual owner 
     (including the heirs and assigns of the individual owner) 
     against the United States relating to the tract of land 
     identified in the offer; and
       ``(viii) a statement that the settlement proposed by the 
     offer does not cover any claim for an accounting described in 
     title I of the Indian Trust Reform Act of 2005.
       ``(3) Acceptance.--No acceptance of an offer under this 
     subsection shall be valid or binding on the individual owner 
     unless the acceptance--
       ``(A) is in writing;
       ``(B) is signed by the individual owner;
       ``(C) is notarized; and
       ``(D) is attached to a copy of, or contains all material 
     terms of, the offer to which the acceptance corresponds.
       ``(4) Limitation.--No offer to purchase an interest under 
     this section or any other provision of law shall be 
     conditioned on the acceptance of an offer to settle a claim 
     under this subsection.
       ``(5) Other laws.--The authority of the Secretary to settle 
     claims under this subsection shall be in addition to, and not 
     in lieu of, the authority of the Secretary to settle claims 
     under any other provision of Federal law.
       ``(g) Borrowing From Treasury.--
       ``(1) Issuance of obligations.--
       ``(A) In general.--To the extent approved in annual 
     appropriations Acts, the Secretary may issue to the Secretary 
     of the Treasury obligations in such amounts as the Secretary 
     determines to be necessary to acquire interests under this 
     Act, subject to approval of the Secretary of the Treasury, 
     and bearing interest at a rate to be determined by the 
     Secretary of the Treasury, taking into consideration current 
     market yields on outstanding marketable obligations of the 
     United States of comparable maturities to the obligations.
       ``(B) Limitation.--The aggregate amount of obligations 
     under subparagraph (A) outstanding at any time shall not 
     exceed $[______].
       ``(2) Forms and denominations.--The obligations issued 
     under paragraph (1) shall be in such forms and denominations, 
     and subject to such other terms and conditions, as the 
     Secretary of the Treasury may prescribe.
       ``(3) Repayment.--
       ``(A) In general.--Revenues derived from land restored to 
     the Tribe under this Act shall be used by the Secretary to 
     pay the principal and interest on the obligations issued 
     under paragraph (1).
       ``(B) Assurance of repayment.--The Secretary shall ensure, 
     to the maximum extent possible, that the revenues described 
     in subparagraph (A) provide reasonable assurance

[[Page 16629]]

     of repayment of the obligations issued under paragraph (1).
       ``(4) Authorization of appropriations.--There are 
     authorized to be appropriated to the Secretary for each 
     fiscal year beginning after the date of enactment of this 
     subsection such sums as are necessary to cover any difference 
     between--
       ``(A) the total amount of repayments of principal and 
     interest on obligations issued to the Secretary of the 
     Treasury under paragraph (1) during the previous fiscal year; 
     and
       ``(B) the total amount of repayments described in 
     subparagraph (A) that were contractually required to be made 
     to the Secretary of the Treasury during that fiscal year.
       ``(h) Receipt of Payments Have No Impact on Benefits Under 
     Other Federal Programs.--The receipt of a payment by an 
     offeree under this title shall not be--
       ``(1) subject to Federal or State income tax; or
       ``(2) treated as benefits or otherwise taken into account 
     in determining the eligibility of the offeree for, or the 
     amount of benefits under, any other Federal program, 
     including the social security program, the medicare program, 
     the medicaid program, the State children's health insurance 
     program, the food stamp program, or the Temporary Assistance 
     for Needy Families program.''.

 TITLE V--RESTRUCTURING BUREAU OF INDIAN AFFAIRS AND OFFICE OF SPECIAL 
                                TRUSTEE

     SEC. 501. PURPOSE.

       The purpose of this title is to ensure a more effective and 
     accountable administration of duties of the Secretary of the 
     Interior with respect to providing services and programs to 
     Indians and Indian tribes, including the management of Indian 
     trust resources.

     SEC. 502. DEFINITIONS.

       In this title:
       (1) Bureau.--The term ``Bureau'' means the Bureau of Indian 
     Affairs.
       (2) Office.--The term ``Office'' means the Office of Trust 
     Reform Implementation and Oversight referred to in section 
     503(c).
       (3) Secretary.--The term ``Secretary'' means the Secretary 
     of the Interior.
       (4) Under secretary.--The term ``Under Secretary'' means 
     the individual appointed to the position of Under Secretary 
     for Indian Affairs, established by section 503(a).

     SEC. 503. UNDER SECRETARY FOR INDIAN AFFAIRS.

       (a) Establishment of Position.--There is established in the 
     Department of the Interior the position of Under Secretary 
     for Indian Affairs, who shall report directly to the 
     Secretary.
       (b) Appointment.--
       (1) In general.--Except as provided in paragraph (2), the 
     Under Secretary shall be appointed by the President, by and 
     with the advice and consent of the Senate.
       (2) Exception.--The officer serving as the Assistant 
     Secretary for Indian Affairs on the date of enactment of this 
     Act may assume the position of Under Secretary without 
     appointment under paragraph (1) if--
       (A) the officer was appointed as Assistant Secretary for 
     Indian Affairs by the President by and with the advice and 
     consent of the Senate; and
       (B) not later than 180 days after the date of enactment of 
     this Act, the Secretary approves the assumption.
       (c) Duties.--In addition to the duties transferred to the 
     Under Secretary under sections 504 and 505, the Under 
     Secretary, acting through an Office of Trust Reform 
     Implementation and Oversight, shall--
       (1) carry out any activity relating to trust fund accounts 
     and trust resource management of the Bureau (except any 
     activity carried out under the Office of the Special Trustee 
     for American Indians before the date on which the Office of 
     the Special Trustee is abolished), in accordance with the 
     American Indian Trust Fund Management Reform Act of 1994 (25 
     U.S.C. 4001 et seq.);
       (2) develop and maintain an inventory of Indian trust 
     assets and resources;
       (3) coordinate with the Special Trustee for American 
     Indians to ensure an orderly transition of the functions of 
     the Special Trustee under section 505;
       (4) supervise any activity carried out by the Department of 
     the Interior, including--
       (A) to the extent that the activities relate to Indian 
     affairs, activities carried out by--
       (i) the Commissioner of Reclamation;
       (ii) the Director of the Bureau of Land Management; and
       (iii) the Director of the Minerals Management Service; and
       (B) intergovernmental relations between the Bureau and 
     Indian tribal governments;
       (5) to the maximum extent practicable, coordinate 
     activities and policies of the Bureau with activities and 
     policies of--
       (A) the Bureau of Reclamation;
       (B) the Bureau of Land Management; and
       (C) the Minerals Management Service;
       (6) provide for regular consultation with Indians and 
     Indian tribes that own interests in trust resources and trust 
     fund accounts;
       (7) manage and administer Indian trust resources in 
     accordance with any applicable Federal law;
       (8) take steps to protect the security of data relating to 
     individual Indian and Indian tribal trust accounts; and
       (9) take any other measure the Under Secretary determines 
     to be necessary with respect to Indian affairs.

     SEC. 504. TRANSFER OF FUNCTIONS OF ASSISTANT SECRETARY FOR 
                   INDIAN AFFAIRS.

       (a) Transfer of Functions.--There is transferred to the 
     Under Secretary any function of the Assistant Secretary for 
     Indian Affairs that has not been carried out by the Assistant 
     Secretary as of the date of enactment of this Act.
       (b) Determinations of Certain Functions by the Office of 
     Management and Budget.--If necessary, the Office of 
     Management and Budget shall make any determination relating 
     to the functions transferred under subsection (a).
       (c) Personnel Provisions.--
       (1) Appointments.--The Under Secretary may appoint and fix 
     the compensation of such officers and employees as the Under 
     Secretary determines to be necessary to carry out any 
     function transferred under this section.
       (2) Requirements.--Except as otherwise provided by law--
       (A) an officer or employee described in paragraph (1) shall 
     be appointed in accordance with the civil service laws; and
       (B) the compensation of the officer or employee shall be 
     fixed in accordance with title 5, United States Code.
       (d) Delegation and Assignment.--
       (1) In general.--Except as otherwise expressly prohibited 
     by law or otherwise provided by this section, the Under 
     Secretary may--
       (A) delegate any of the functions transferred to the Under 
     Secretary by this section and any function transferred or 
     granted to the Under Secretary after the date of enactment of 
     this Act to such officers and employees of the Office as the 
     Under Secretary may designate; and
       (B) authorize successive redelegations of such functions as 
     the Under Secretary determines to be necessary or 
     appropriate.
       (2) Delegation.--No delegation of functions by the Under 
     Secretary under this section shall relieve the Under 
     Secretary of responsibility for the administration of the 
     functions.
       (e) Reorganization.--The Under Secretary may allocate or 
     reallocate any function transferred under this section among 
     the officers of the Office, and establish, consolidate, 
     alter, or discontinue such organizational entities in the 
     Office, as the Under Secretary determines to be necessary or 
     appropriate.
       (f) Rules.--The Under Secretary may prescribe, in 
     accordance with the provisions of chapters 5 and 6 of title 
     5, United States Code, such rules and regulations as the 
     Under Secretary determines to be necessary or appropriate to 
     administer and manage the functions of the Office.
       (g) Transfer and Allocations of Appropriations and 
     Personnel.--
       (1) In general.--Except as otherwise provided in this 
     section, the personnel employed in connection with, and the 
     assets, liabilities, contracts, property, records, and 
     unexpended balances of appropriations, authorizations, 
     allocations, and other funds employed, used, held, arising 
     from, available to, or to be made available in connection 
     with, the functions transferred by this section, subject to 
     section 1531 of title 31, United States Code, shall be 
     transferred to the Office.
       (2) Unexpended funds.--Unexpended funds transferred 
     pursuant to this subsection shall be used only for the 
     purposes for which the funds were originally authorized and 
     appropriated.
       (h) Incidental Transfers.--
       (1) In general.--The Director of the Office of Management 
     and Budget, at any time the Director may provide, may make 
     such determinations as are necessary with regard to the 
     functions transferred by this section, and make such 
     additional incidental dispositions of personnel, assets, 
     liabilities, grants, contracts, property, records, and 
     unexpended balances of appropriations, authorizations, 
     allocations, and other funds held, used, arising from, 
     available to, or to be made available in connection with such 
     functions, as are necessary, to carry out this section.
       (2) Termination of affairs.--The Director of the Office of 
     Management and Budget shall provide for the termination of 
     the affairs of all entities terminated by this section and 
     for any further measures and dispositions as are necessary to 
     effectuate the purposes of this section.
       (i) Effect on Personnel.--
       (1) In general.--Except as otherwise provided by this 
     section, the transfer pursuant to this section of full-time 
     personnel (except special Government employees) and part-time 
     personnel holding permanent positions shall not cause any 
     such employee to be separated or reduced in grade or 
     compensation for a period of at least 1 year after the date 
     of transfer of the employee under this section.
       (2) Executive schedule positions.--Except as otherwise 
     provided in this section, any person who, on the day 
     preceding the date of enactment of this Act, held a position 
     compensated in accordance with the Executive Schedule 
     prescribed in chapter 53 of title 5, United States Code, and 
     who, without a break in service, is appointed to a position 
     in

[[Page 16630]]

     the Office having duties comparable to the duties performed 
     immediately preceding such appointment shall continue to be 
     compensated in the new position at not less than the rate 
     provided for the previous position, for the duration of the 
     service of the person in the new position.
       (3) Termination of certain positions.--Positions whose 
     incumbents are appointed by the President, by and with the 
     advice and consent of the Senate, the functions of which are 
     transferred by this title, shall terminate on the date of 
     enactment of this Act.
       (j) Separability.--If a provision of this section or the 
     application of this section to any person or circumstance is 
     held invalid, neither the remainder of this section nor the 
     application of the provision to other persons or 
     circumstances shall be affected.
       (k) Transition.--The Under Secretary may use--
       (1) the services of the officers, employees, and other 
     personnel of the Assistant Secretary for Indian Affairs 
     relating to functions transferred to the Office by this 
     section; and
       (2) funds appropriated to the functions for such period of 
     time as may reasonably be needed to facilitate the orderly 
     implementation of this section.
       (l) References.--Any reference in a Federal law, Executive 
     order, rule, regulation, delegation of authority, or document 
     relating to the Assistant Secretary for Indian Affairs, with 
     respect to functions transferred under this section, shall be 
     deemed to be a reference to the Under Secretary.
       (m) Recommended Legislation.--Not later than 180 days after 
     the effective date of this title, the Under Secretary, in 
     consultation with the appropriate committees of Congress and 
     the Director of the Office of Management and Budget, shall 
     submit to Congress any recommendations relating to additional 
     technical and conforming amendments to Federal law to reflect 
     the changes made by this section.
       (n) Effect of Section.--
       (1) Continuing effect of legal documents.--Any legal 
     document relating to a function transferred by this section 
     that is in effect on the date of enactment of this Act shall 
     continue in effect in accordance with the terms of the 
     document until the document is modified or terminated by--
       (A) the President;
       (B) the Under Secretary;
       (C) a court of competent jurisdiction; or
       (D) operation of Federal or State law.
       (2) Proceedings not affected.--This section shall not 
     affect any proceeding (including a notice of proposed 
     rulemaking, an administrative proceeding, and an application 
     for a license, permit, certificate, or financial assistance) 
     relating to a function transferred under this section that is 
     pending before the Assistant Secretary on the date of 
     enactment of this Act.

     SEC. 505. OFFICE OF SPECIAL TRUSTEE FOR AMERICAN INDIANS.

       (a) Termination.--Notwithstanding sections 302 and 303 of 
     the American Indian Trust Fund Management Reform Act of 1994 
     (25 U.S.C. 4042; 4043), the Office of Special Trustee for 
     American Indians shall terminate on the effective date of 
     this section.
       (b) Transfer of Functions.--There is transferred to the 
     Under Secretary any function of the Special Trustee for 
     American Indians that has not been carried out by the Special 
     Trustee as of the effective date of this section.
       (c) Determinations of Certain Functions by the Office of 
     Management and Budget.--If necessary, the Office of 
     Management and Budget shall make any determination relating 
     to the functions transferred under subsection (b).
       (d) Personnel Provisions.--
       (1) Appointments.--The Under Secretary may appoint and fix 
     the compensation of such officers and employees as the Under 
     Secretary determines to be necessary to carry out any 
     function transferred under this section.
       (2) Requirements.--Except as otherwise provided by law--
       (A) any officer or employee described in paragraph (1) 
     shall be appointed in accordance with the civil service laws; 
     and
       (B) the compensation of such an officer or employee shall 
     be fixed in accordance with title 5, United States Code.
       (e) Delegation and Assignment.--
       (1) In general.--Except as otherwise expressly prohibited 
     by law or otherwise provided by this section, the Under 
     Secretary may--
       (A) delegate any of the functions transferred to the Under 
     Secretary under this section and any function transferred or 
     granted to the Under Secretary after the effective date of 
     this section to such officers and employees of the Office as 
     the Under Secretary may designate; and
       (B) authorize successive redelegations of the functions as 
     are necessary or appropriate.
       (2) Delegation.--No delegation of functions by the Under 
     Secretary under this section shall relieve the Under 
     Secretary of responsibility for the administration of the 
     functions.
       (f) Reorganization.--The Under Secretary may allocate or 
     reallocate any function transferred under subsection (b) 
     among the officers of the Office, and establish, consolidate, 
     alter, or discontinue such organizational entities in the 
     Office as the Under Secretary determines to be necessary or 
     appropriate.
       (g) Rules.--The Under Secretary may prescribe, in 
     accordance with the provisions of chapters 5 and 6 of title 
     5, United States Code, such rules and regulations as the 
     Under Secretary determines to be necessary or appropriate to 
     administer and manage the functions of the Office.
       (h) Transfer and Allocations of Appropriations and 
     Personnel.--
       (1) In general.--Except as otherwise provided in this 
     section, the personnel employed in connection with, and the 
     assets, liabilities, contracts, property, records, and 
     unexpended balances of appropriations, authorizations, 
     allocations, and other funds employed, used, held, arising 
     from, available to, or to be made available in connection 
     with the functions transferred by this section, subject to 
     section 1531 of title 31, United States Code, shall be 
     transferred to the Office.
       (2) Unexpended funds.--Unexpended funds transferred 
     pursuant to this subsection shall be used only for the 
     purposes for which the funds were originally authorized and 
     appropriated.
       (i) Incidental Transfers.--
       (1) In general.--The Director of the Office of Management 
     and Budget, at any time the Director may provide, may make 
     such determinations as are necessary with regard to the 
     functions transferred by this section, and make such 
     additional incidental dispositions of personnel, assets, 
     liabilities, grants, contracts, property, records, and 
     unexpended balances of appropriations, authorizations, 
     allocations, and other funds held, used, arising from, 
     available to, or to be made available in connection with such 
     functions, as are necessary, to carry out this section.
       (2) Termination of affairs.--The Director of the Office of 
     Management and Budget shall provide for the termination of 
     the affairs of all entities terminated by this section and 
     for any further measures and dispositions as are necessary to 
     effectuate the purposes of this section.
       (j) Effect on Personnel.--
       (1) In general.--Except as otherwise provided by this 
     section, the transfer pursuant to this section of full-time 
     personnel (except special Government employees) and part-time 
     personnel holding permanent positions shall not cause any 
     such employee to be separated or reduced in grade or 
     compensation for a period of at least 1 year after the date 
     of transfer of the employee under this section.
       (2) Executive schedule positions.--Except as otherwise 
     provided in this section, any person who, on the day 
     preceding the effective date of this section, held a position 
     compensated in accordance with the Executive Schedule 
     prescribed in chapter 53 of title 5, United States Code, and 
     who, without a break in service, is appointed to a position 
     in the Office having duties comparable to the duties 
     performed immediately preceding such appointment, shall 
     continue to be compensated in the new position at not less 
     than the rate provided for the previous position, for the 
     duration of the service of the person in the new position.
       (3) Termination of certain positions.--Positions the 
     incumbents of which are appointed by the President, by and 
     with the advice and consent of the Senate, and the functions 
     of which are transferred by this title, shall terminate on 
     the effective date of this section.
       (k) Separability.--If a provision of this section or the 
     application of this section to any person or circumstance is 
     held invalid, neither the remainder of this section nor the 
     application of the provision to other persons or 
     circumstances shall be affected.
       (l) Transition.--The Under Secretary may use--
       (1) the services of the officers, employees, and other 
     personnel of the Special Trustee relating to functions 
     transferred to the Office by this section; and
       (2) funds appropriated to those functions for such period 
     of time as may reasonably be needed to facilitate the orderly 
     implementation of this section.
       (m) References.--Any reference in a Federal law, Executive 
     order, rule, regulation, delegation of authority, or document 
     relating to the Special Trustee, with respect to functions 
     transferred under this section, shall be deemed to be a 
     reference to the Under Secretary.
       (n) Recommended Legislation.--Not later than 180 days after 
     the effective date of this title, the Under Secretary, in 
     consultation with the appropriate committees of Congress and 
     the Director of the Office of Management and Budget, shall 
     submit to Congress any recommendations relating to additional 
     technical and conforming amendments to Federal law to reflect 
     the changes made by this section.
       (o) Effect of Section.--
       (1) Continuing effect of legal documents.--Any legal 
     document relating to a function transferred by this section 
     that is in effect on the effective date of this section shall 
     continue in effect in accordance with the terms of the 
     document until the document is modified or terminated by--

[[Page 16631]]

       (A) the President;
       (B) the Under Secretary;
       (C) a court of competent jurisdiction; or
       (D) operation of Federal or State law.
       (2) Proceedings not affected.--This section shall not 
     affect any proceeding (including a notice of proposed 
     rulemaking, an administrative proceeding, and an application 
     for a license, permit, certificate, or financial assistance) 
     relating to a function transferred under this section that is 
     pending before the Special Trustee on the effective date of 
     this section.
       (p) Effective Date.--This section shall take effect on 
     December 31, 2008.

     SEC. 506. HIRING PREFERENCE.

       In appointing or otherwise hiring any employee to the 
     Office, the Under Secretary shall give preference to Indians 
     in accordance with section 12 of the Act of June 8, 1934 (25 
     U.S.C. 472).

     SEC. 507. AUTHORIZATION OF APPROPRIATIONS.

       There are authorized to be appropriated such sums as are 
     necessary to carry out this title.

                 TITLE VI--AUDIT OF INDIAN TRUST FUNDS

     SEC. 601. AUDITS AND REPORTS.

       (a) Financial Statements and Internal Control Report.--
       (1) Financial statements.--For each fiscal year beginning 
     after the enactment of this Act, the Secretary of Interior 
     shall prepare financial statements for individual Indian, 
     Indian tribal, and other Indian trust accounts in accordance 
     with generally accepted accounting principles of the Federal 
     Government.
       (2) Internal control report.--Concurrently with the 
     financial statements under by paragraph (1), the Secretary 
     shall prepare an internal control report that--
       (A) establishes the responsibility of the Secretary for 
     establishing and maintaining an adequate internal control 
     structure and procedures for financial reporting under this 
     Act; and
       (B) assesses the effectiveness of the internal control 
     structure and procedures for financial reporting under 
     subparagraph (A) during the preceding fiscal year.
       (b) Independent External Auditor.--
       (1) In general.--The Comptroller General of the United 
     States shall enter into a contract with an independent 
     external auditor to conduct an audit and prepare a report in 
     accordance with this subparagraph.
       (2) Audit report.--An independent external auditor shall 
     submit to the Committee on Indian Affairs of the Senate, and 
     make available to the public, an audit of the financial 
     statements under subsection (a)(1) in accordance with--
       (A) generally accepted auditing standards of the Federal 
     Government; and
       (B) the financial audit manual jointly issued by the 
     Government Accountability Office and the Council on Integrity 
     and Efficiency of the President.
       (3) Attestation and report.--In conducting the audit under 
     paragraph (2), the independent external auditor shall attest 
     to, and report on, the assessment of internal controls made 
     by the Secretary under subsection (a)(2)(B).
       (4) Payment for audit and report.--
       (A) Transfer of funds.--On request of the Comptroller 
     General, the Secretary shall transfer to the Government 
     Accountability Office from funds made available for 
     administrative expenses of the Department of Interior the 
     amount requested by the Comptroller General to pay for an 
     annual audit and report.
       (B) Credit to account.--
       (i) In general.--The Controller General shall credit the 
     amount of any funds transferred under subparagraph (A) to the 
     account established for salaries and expenses of the 
     Government Accountability Office.
       (ii) Availability.--Any amount credited under clause (i) 
     shall be made available on receipt, without fiscal year 
     limitation, to cover the full costs of the audit and report.

     SEC. 602. AUTHORIZATION OF APPROPRIATIONS.

       There are authorized to be appropriated such sums as are 
     necessary to carry out this title.

  Mr. DORGAN. Mr. President, I am pleased to join Senator McCain in 
introducing this historic legislation. This bill is a necessary 
starting point to begin resolution of the longstanding claims in the 
Cobell v. Norton litigation, which involves the Federal Government's 
mismanagement of hundreds of thousands of individual Indian money 
accounts. The bill was drafted in a bipartisan manner and attempts to 
address the principles recently developed and set forth by Indian 
Country.
  I want to thank the National Congress of American Indians and the 
InterTribal Monitoring Association for leading the consultative process 
utilized in developing these principles. Those principles helped guide 
the drafting of this bill. The current language of the bill, however, 
is not perfect. Rather, it is intended to be a starting point for 
substantive and productive dialogue between the parties. Recently, the 
parties engaged in a 9-month mediation process that failed to result in 
any type of potential resolution. This litigation is nearly a decade 
old and has no end in sight. It is my hope that this bill will assist 
the parties in reaching some type of resolution of this litigation.
  The individual Indian trust account system was not a voluntary system 
elected by the individual Indians, but rather one imposed upon them by 
the federal government more than one hundred years ago. The Federal 
Government serves as trustee of these accounts and the individual 
Indians are beneficiaries. Unfortunately, the Cobell litigation has 
brought to light a very disturbing problem: the Federal Government, as 
trustee, may not be able to provide an accurate and proper historical 
accounting of these accounts. Moreover, the Federal Government may not 
know the proper balances of these accounts nor have sufficient 
documentation to determine the value of these accounts. Further, 
government officials have stated that a full transaction-by-transaction 
accounting, presuming one can be performed, would cost more than $10 
billion. This cost would not include any monies determined to be 
unaccounted for or the interest on those monies.
  The claims in the Cobell litigation on examples of broken promises 
and trust responsibilities to the Native Americans of this country, but 
it is my hope and desire that this bill will help us keep those 
promises, fulfill our responsibilities to Native Americans, and restore 
trust and faith in our government. If Congress continues to allow the 
Cobell litigation to proceed, the individual beneficiaries of these 
accounts will not be alive to reap the benefits these accounts and the 
trust resource management system were intended to bestow.
  It is an honor to serve as Vice Chairman of the Committee on Indian 
Affairs alongside chairman McCain. We have publicly pledged that we 
will make our best effort to resolve this long overdue injustice to the 
first Americans. The introduction of this bill is the first step toward 
that goal.

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