[House Report 108-656]
[From the U.S. Government Publishing Office]



108th Congress                                                   Report
                        HOUSE OF REPRESENTATIVES
 2d Session                                                     108-656

======================================================================



 
               AMERICAN INDIAN PROBATE REFORM ACT OF 2004

                                _______
                                

 September 7, 2004.--Committed to the Committee of the Whole House on 
            the State of the Union and ordered to be printed

                                _______
                                

  Mr. Pombo, from the Committee on Resources, submitted the following

                              R E P O R T

                         [To accompany S. 1721]

      [Including cost estimate of the Congressional Budget Office]

  The Committee on Resources, to whom was referred the bill (S. 
1721) to amend the Indian Land Consolidation Act to improve 
provisions relating to probate of trust and restricted land, 
and for other purposes, having considered the same, report 
favorably thereon without amendment and recommend that the bill 
do pass.

                          Purpose of the Bill

    The purpose of S. 1721 is to amend the Indian Land 
Consolidation Act to improve provisions relating to probate of 
trust and restricted land, and for other purposes.

                  Background and Need for Legislation

    S. 1721 amends the Indian Land Consolidation Act (25 U.S.C. 
2201 et seq., ILCA) to address the worsening problem of 
fractionation of trust and restricted lands owned by individual 
Indians. The bill provides a new, uniform federal probate code 
applicable to such lands, incentives for Indians to write 
wills, and mechanisms for the Department of the Interior, 
tribes and individual Indians to consolidated highly 
fractionated Indian lands.
    Beginning under the General Allotment Act of 1887 (also 
called the ``Dawes Act''), Indian tribal lands were allocated 
to individual Indians in 40- to 160-acre allotments. The 
intention was to forcibly assimilate Indians by breaking up 
their reservations. This policy was deemed by Congress to be a 
failure and was accordingly ended in 1934. As a result of the 
allotment process, almost 11 million acres of lands are now 
held in trust or restricted status by the United States for 
individual Indians. The Department of the Interior is 
responsible for managing the properties and the monies produced 
from revenue-producing activities on them.
    Individual Indian trust lands are subject to state 
intestacy laws, which generally provide for each heir to 
receive an equal share of the undivided interest in a parcel of 
land when the deceased owner does not leave a valid will. 
Historically, most Indian owners of the allotted trust lands 
have died without leaving a will. This phenomenon has led to 
exponentially-increasing fractionation of interests in land as 
each generation passes. It is common for dozens or even 
hundreds of Indians to own equal, undivided shares in a parcel 
of trust land.
    Such fractionated interests are extremely difficult to 
administer, and managing them often costs far more than the 
land economically produces, harming the Department's ability to 
manage the properties as well as the owners' ability to derive 
any value from them. During a June 23, 2004, Committee on 
Resources hearing on S. 1721, the Interior Department's 
witness, Ross O. Swimmer, Special Trustee for American Indians, 
elaborated on the nature and extent of the problem:

          In 1992 the General Accounting Office (GAO) conducted 
        an audit of 12 reservations to determine the severity 
        of fractionation on those reservations. The GAO found 
        that on the 12 reservations upon which it compiled 
        data, there were approximately 80,000 discrete owners 
        but, because of fractionation, there were over a 
        million ownership records associated with those owners. 
        The GAO also found that if the land was physically 
        divided by the fractional interests, many of these 
        interests would represent less than one square foot of 
        ground. In early 2002, the Department attempted to 
        replicate the audit methodology used by the GAO and to 
        update the GAO report data to assess the continued 
        growth of fractionation and found that it grew by over 
        40 percent between 1992 and 2002.
          As an example of continuing fractionation, consider a 
        real tract identified in 1987 in Hodel v. Irving, 481 
        U.S. 704 (1987):
          Tract 1305 is 40 acres and produces $1,080 in income 
        annually. It is valued at $8,000. It has 439 owners, 
        one-third of whom receive less than $.05 in annual rent 
        and two-thirds of whom receive less than $1. The 
        largest interest holder receives $82.85 annually. The 
        common denominator used to compute fractional interests 
        in the property is 3,394,923,840,000. The smallest heir 
        receives $.01 every 177 years. If the tract were sold 
        (assuming the 439 owners could agree) for its estimated 
        $8,000 value, he would be entitled to $.000418. The 
        administrative costs of handling this tract are 
        estimated by the BIA at $17,560 annually.
          Today, this tract produces $2,000 in income annually 
        and is valued at $22,000. It now has 505 owners but the 
        common denominator used to compute fractional interests 
        has grown to 220,670,049,600,000. If the tract were 
        sold (assuming the 505 owners could agree) for its 
        estimated $22,000 value, the smallest heir would now be 
        entitled to $.00001824.

    Fractionation is at the heart of the Cobell v. Norton 
litigation. Unless a new, uniform federal probate code is 
enacted, fractionation will worsen, leading to skyrocketing 
administration costs for the Interior Department, continued 
diminishment in value to the land owners, and potentially more 
litigation.

The Indian Land Consolidation Act

    Congress enacted ILCA in 1983 to address Indian land 
fractionation problems by--
          (1) Authorizing Indian tribes to establish land 
        consolidation plans (section 204);
          (2) Authorizing Indian tribes to acquire an entire 
        parcel of trust land with the consent of the majority 
        of the parcel's owners (section 205);
          (3) Authorizing the Secretary of the Interior to 
        approve tribal probate codes, including provisions that 
        limit devise or descent to non-member Indians or non-
        Indians (section 206); and
          (4) Providing that both devise and descent were 
        inapplicable to any fractional interest in trust or 
        restricted land if it was 2% of the total acreage in a 
        tract or smaller and it had not produced $100 in income 
        in the previous year; instead, such interests were to 
        escheat to the tribe (section 207).
    Certain provisions in the ILCA were criticized soon after 
it was enacted. Most criticism targeted the escheat provision 
in section 207 as a potential taking of property. A lawsuit 
concerning this provision was filed shortly after enactment. In 
the meantime, ILCA was amended in 1984 to address concerns 
raised by Indian tribes and individual Indian landowners.
    In 1987, the Supreme Court found the escheat provision in 
the 1983 version of ILCA to be an unconstitutional taking 
because it abolishes both descent and devise of the 
propertyinterests at stake. The Court held that escheat could be 
constitutional if it were part of a system in which the law allows the 
landowner to devise his property but he dies intestate. The 1984 
amendments were found to be unconstitutional as well in 1997.
    Further amendments to ILCA were enacted in 2000 (Public Law 
106-462). The purpose of the 2000 amendments was to prevent 
further fractionation of Indian trust allotments, consolidate 
fractional interests and their ownership into usable parcels, 
consolidate those interests in a manner that enhances tribal 
sovereignty, promote tribal self-sufficiency and self-
determination, and reverse the effects of the allotment policy 
on Indian tribes. The 2000 amendments contained new inheritance 
restrictions, and mechanisms to consolidate fractionated 
parcels of land.
    While most of the 2000 amendments are in force today, 
including a successful pilot program to acquire fractionated 
interests, the inheritance restrictions under ILCA's probate 
code are not effective because the Secretary of the Interior, 
at Congress' behest, has not performed a certification required 
to make them effective.
    Under the 2000 amendments, many Indian owners of trust or 
restricted interests in Indian lands would be unable to devise 
anything more than a life estate in those interests--or to have 
the interests pass by intestate succession--to their own 
children or grandchildren who were not Indian as defined in 
ILCA. Indian landowners and tribal representatives expressed 
great concern over the limitations placed on landowners by the 
intestate and testamentary provisions of the 2000 amendments, 
and indicated that some landowners have submitted, or were 
prepared to submit, applications for fee patents of their 
interests to avoid the limitations of the federal probate code 
and to assure their ability to devise the property to their 
children or other family members.
    This unfortunate result was never intended to happen with 
the 2000 amendments. To the contrary, the 2000 amendments were 
an effort to preserve the trust status of individual Indian 
lands, and to build on the federal Indian policy reflected by 
the enactment of the Indian Reorganization Act of 1934, 
including the 1934 Act's indefinite extension of the trust and 
restricted period on Indian lands and its repudiation of laws 
from an earlier period that facilitated the unilateral issuance 
of fee patents to owners of Indian trust land, even over their 
protests. Therefore, in addition to addressing the alarming 
rate of fractionation of Indian lands, S. 1721 is intended to 
address the concerns of Indian landowners and their advocates 
over the impact that the probate code in the 2000 amendments 
would have if it were to be certified.
    At the Committee on Resources hearing on S. 1721, the 
Department of the Interior's witness testified that the 2000 
amendments are complicated difficult to administer, and the 
goals of consolidating trust lands are not being met. Although 
the pilot land acquisition program in the Bureau of Indian 
Affairs's Midwest Regional Office has proven to be effective, 
the rate of fractionation of other interests has been so great 
that the same number of outstanding interests exist today on 
the three reservations where the pilot program is operating as 
when the program began four years ago.

How S. 1721 works

    S. 1721 provides stronger measures to slow and halt the 
continued fractionation of Indian lands and to consolidate 
fractionated interests. The general rules of intestate 
succession in S. 1721 would limit both the number of successive 
classes of potential heirs standing to inherit an interest 
before the interest would pass to the Indian tribe, and the 
eligibility for membership within each such class. In addition, 
the uniform probate code in S. 1721 has a special ``single heir 
rule'' applicable to small interests that are not passed under 
a valid will; a small interest basically means any trust or 
restricted interest in land in the decedent's estate that 
represents less than 5% of the entire undivided ownership of 
the parcel of which it is a part.
    The single heir rule is intended to place a ``floor'' on 
fractionation resulting from intestate succession. It provides 
owners of trust or restricted land with a strong incentive to 
write wills. The rule would reduce the number of classes of 
potential eligible heirs standing to inherit these small 
interests by intestate succession to just three--children, 
grandchildren, and great grandchildren--and would make only one 
person in each successive class, the oldest ``eligible heir,'' 
the heir of the interest. If there is no eligible heir in any 
of the three classes, the interest passes to the Indian tribe 
with jurisdiction over the interest. It is important to note, 
however, that S. 1721 would expressly allow the owners of trust 
and restricted interests to avoid the application of the single 
heir rule by disposing of the interest by executing a will.
    While the intestate provisions of S. 1721 limit the range 
of eligible heirs, its testamentary provisions give owners of 
trust and restricted interests in land and trust personalty a 
very wide range of testamentary options. Specifically, the 
landowner may devise such interests in trust or restricted 
status to his or her lineal descendants, to any other person 
who owns another trust or restricted interest in the same 
parcel, to the Indian tribe, or to any Indian, or the landowner 
may also devise the interest: (1) as a life estate to any 
person; or (2) as an unrestricted fee interest to any person 
who is not Indian, as defined in ILCA (including the testator's 
non-Indian lineal descendants, provided they are not 
``Indian'').
    The probate code under S. 1721 would thus provide 
landowners with a strong incentive to write wills rather than 
simply ``default'' to the law of intestate succession, which, 
even under the narrow rules of the bill's probate code, would 
inevitably lead to some fractionation. At the same time, 
because landowners would have real testamentary choices under 
S. 1721, the constitutionality issues enunciated in Supreme 
Court rulings concerning ILCA have been addressed.
    S. 1721 includes mechanisms beyond the probate code that 
are intended to facilitate the consolidation of fractional 
interests. For example, section 4 creates a process for the 
partition by sale of certain highly fractionated Indian lands. 
This provision would allow certain owners of undivided 
interests in tracts of land that meet the definition of 
``highly fractionated'' to request that the Secretary of the 
Interior partition the property by sale. Another example of a 
consolidating mechanism in S. 1721 is an amendment to ILCA that 
would allow the co-owners of trust or restricted interests, co-
heirs and the Indian tribe to purchase, at not less than fair 
market value, fractional interests in a decedent's estate prior 
to entry of the order distributing theestate. Under this 
provision, the heir's consent would be required--except where the 
heir's interest is less than 5% of the entire undivided ownership of 
the parcel of which it is a part and such interest is passed without a 
will.
    It should be noted that in his testimony before the 
Committee on Resources hearing on S. 1721, the Department of 
the Interior's witness requested the Committee's consideration 
of certain technical amendments and an amendment to address a 
problem in a certain Supreme Court case. Responding to 
questions regarding the need for such amendments in light of 
the relatively few legislative days remaining in the 108th 
Congress, the witness testified that in the Department's view 
it is much more important to enact S. 1721 without any further 
delay than to risk sending the bill back to the Senate with 
amendments; he noted that such amendments can wait to be 
considered in the context of separate legislation.

                            Committee Action

    S. 1721 was introduced on October 14, 2003, by Senator Ben 
Nighthorse Campbell (R-CO). The bill passed the Senate with an 
amendment by unanimous consent on June 2, 2004. In the House of 
Representatives, the bill was referred to the Committee on 
Resources. On June 23, 2004, the Full Resources Committee held 
a hearing on the bill. On July 14, 2004, the Full Resources 
Committee met to consider the bill. No amendments were offered 
and the bill was then ordered favorably reported to the House 
of Representatives by unanimous consent.

            Committee Oversight Findings and Recommendations

    Regarding clause 2(b)(1) of rule X and clause 3(c)(1) of 
rule XIII of the Rules of the House of Representatives, the 
Committee on Resources' oversight findings and recommendations 
are reflected in the body of this report.

                   Constitutional Authority Statement

    Article I, section 8 of the Constitution of the United 
States grants Congress the authority to enact this bill.

                    Compliance With House Rule XIII

    1. Cost of Legislation. Clause 3(d)(2) of rule XIII of the 
Rules of the House of Representatives requires an estimate and 
a comparison by the Committee of the costs which would be 
incurred in carrying out this bill. However, clause 3(d)(3)(B) 
of that rule provides that this requirement does not apply when 
the Committee has included in its report a timely submitted 
cost estimate of the bill prepared by the Director of the 
Congressional Budget Office under section 402 of the 
Congressional Budget Act of 1974.
    2. Congressional Budget Act. As required by clause 3(c)(2) 
of rule XIII of the Rules of the House of Representatives and 
section 308(a) of the Congressional Budget Act of 1974, this 
bill does not contain any new budget authority, credit 
authority, or an increase or decrease in revenues or tax 
expenditures. According to the Congressional Budget Office, 
enacting this bill would increase direct spending, but any such 
increases would be less than $200,000 in fiscal year 2005 and 
in negligible amounts thereafter.
    3. General Performance Goals and Objectives. As required by 
clause 3(c)(4) of rule XIII, the general performance goal or 
objective of this bill is to amend the Indian Land 
Consolidation Act to improve provisions relating to probate of 
trust and restricted land, and for other purposes.
    4. Congressional Budget Office Cost Estimate. Under clause 
3(c)(3) of rule XIII of the Rules of the House of 
Representatives and section 403 of the Congressional Budget Act 
of 1974, the Committee has received the following cost estimate 
for this bill from the Director of the Congressional Budget 
Office:

                                     U.S. Congress,
                               Congressional Budget Office,
                                     Washington, DC, July 22, 2004.
Hon. Richard W. Pombo,
Chairman, Committee on Resources,
House of Representatives, Washington, DC.
    Dear Mr. Chairman: The Congressional Budget Office has 
prepared the enclosed cost estimate for S. 1721, the American 
Indian Probate Reform Act of 2004.
    If you wish further details on this estimate, we will be 
pleased to provide them. The CBO staff contact is Lanette J. 
Walker.
            Sincerely,
                                      Elizabeth M. Robinson
                               (For Douglas Holtz-Eakin, Director).
    Enclosure.

S. 1721--American Indian Probate Reform Act of 2004

    Summary: S. 1721 would amend laws that regulate how the 
ownership of interests in Indian trust or restricted land 
(certain parcels of land that are owned by individuals or 
groups) is transferred upon the death of the owner. CBO 
estimates that implementing the legislation would cost $25 
million in 2005 and $457 million over the 2005-2009 period for 
the Secretary of the Interior to acquire interests in trust or 
restricted land and to administer the grant and loan programs 
that would be established under the act. This activity is known 
as Indian land consolidation, and costs for this purpose would 
be subject to appropriation of the necessary sums. Most of the 
costs would stem from specified authorization in S. 1721.
    S. 1721 also would authorize the Secretary of the Interior 
to acquire certain interests in Indian trust or restricted land 
using revenue collected from leasing of natural resources on 
Indian land that has been acquired by the Secretary or from the 
sale of such land. Because such acquisitions could be made 
without appropriations, enacting S. 1721 would increase direct 
spending, but CBO estimates those costs would be less than 
$500,000 in each year over the 2005-2014 period.
    S. 1721 contains no intergovernmental mandates as defined 
in the Unfunded Mandates Reform Act (UMRA) and would impose no 
significant costs on state, local, or tribal governments.
    S. 1721 contains two private-sector mandates as defined in 
UMRA. The act would impose a private-sector mandate on 
individuals who would otherwise inherit interests in Indian 
trust or restricted lands under current law. The act also would 
allow the Secretary of the Interior to partition parcels of 
Indian land for sale under certain conditions. In the event 
that land is partitioned for sale without the consent of all 
the interest owners, S. 1721 would impose a private-sector 
mandate on those not consenting to the partition. CBO estimates 
that the direct cost of mandates in the act would fall below 
the annual threshold established by UMRA forprivate-sector 
mandates ($120 million in 2004, adjusted annually for inflation). The 
act also may benefit interest owners in Indian trust and restricted 
lands since it would remove certain restrictions on the use of such 
lands.
    Estimated cost to the Federal Government: The estimated 
budgetary impact of S. 1721 is shown in the following table. 
The costs of this legislation fall within budget function 450 
(community and regional development).

------------------------------------------------------------------------
                                By fiscal year, in millions of dollars--
                               -----------------------------------------
                                 2004   2005   2006   2007   2008   2009
------------------------------------------------------------------------
                    SPENDING SUBJECT TO APPROPRIATION

Spending for Indian land
 consolidation under current
 law:
    Budget authority..........     22      0      0      0      0      0
    Estimated outlays.........     13     12      5      2      0      0
Proposed changes:
    Purchase of Indian trust
     and restricted land by
     the Secretary of the
     Interior:
        Authorization level...      0     75     95    145    145    145
        Estimated outlays.....      0     23     59     97    128    140
    Tribal grants to develop
     probate codes and estate
     planning:
        Estimated                   0      2      2      2      2      2
         authorization level..
        Estimated outlays.....      0      2      2      2      2      2
    Grants and loans to
     Indians to purchase
     partitions at auction:
        Estimated                   0      *      *      *      *      *
         authorization level..
        Estimated outlays.....      0      *      *      *      *      *
    Total proposed changes:
        Enacted authorization       0     77     79    147    147    147
         level................
        Estimated outlays.....      0     25     61     99    130    142
Total spending under S. 1721:
    Estimated authorization        22     77     97    147    147    147
     level....................
    Estimated outlays.........     13     37     66    101    130    142
------------------------------------------------------------------------
Note.--*=less than $500,000.

    Basis of estimate: For this estimate, CBO assumes that S. 
1721 will be enacted near the beginning of fiscal year 2005 and 
that the authorized and estimated amounts will be appropriated 
for each year. We also assume that outlays will follow the 
historical spending pattern of the Indian Land Consolidation 
Pilot Program.
    The federal government originally allotted interests in 
trust and restricted land to individual Indians over a century 
ago. Over time, the number of owners of such allotted land has 
grown as owners have passed on ownership to their descendants. 
The Cost to the Bureau of Indian Affairs (BIA) to administer 
ownership of this property has also grown. S. 1721 would modify 
the Indian Land Consolidation Act, which attempts to prevent 
further partitioning of such land.

Spending subject to appropriation

    S. 1721 would authorize the appropriation of $75 million in 
2005, $95 million in 2006, and $145 million in each year over 
the 2007-2010 period for the Secretary to acquire undivided 
interests in Indian trust and restricted lands from willing 
sellers at fair market value and to collect and revenue 
generated from the leasing of natural resources on that 
interest. CBO estimates that appropriating the specified 
amounts would result in outlays of $23 million in 2005 and over 
$440 million over the five-year period for purchases of such 
land.
    The act also would authorize the Secretary of the Interior 
to provide grants to Indian tribes to develop tribal probate 
codes and provide estate-planning services to tribal members. 
Based on information from the Department of the Interior (DOI), 
CBO estimates that implementing this provision would cost $2 
million in each year over the 2005-2009 period for the 
Secretary to provide such grants.
    In addition, S. 1721 would establish a process whereby an 
owner in an undivided parcel of land or the tribe may apply for 
the partition (when a parcel of land with multiple owners is 
split into discrete pieces) by sale of certain parcels of trust 
or restricted land. S. 1721 would authorize DOI to provide 
grants and low-interest loans to individuals who successfully 
bid on Indian land auctioned by the Secretary on behalf of an 
owner who wishes to partition and sell their interest in such 
land. Based on information from the department, CBO estimates 
that providing such grants and loans would cost the federal 
government about $1 million over the five-year period, subject 
to the availability of appropriated funds.
    Based on information from BIA, CBO expects that 
implementing S. 1721 could result in some administrative cost 
savings to that agency because there would be fewer individual 
owners of interests in trust and restricted lands. Any such 
savings would depend on amounts appropriated in the future, but 
CBO estimates that savings would not be significant over the 
2005-2009 period.

Direct spending

    Under current law, DOI may spend--subject to 
appropriation--any receipts from natural resources leases on 
trust or restricted land that has been purchased by the 
Secretary or any proceeds from the sale of such land. Subject 
to appropriation, the Secretary is authorized to spend such 
funds to acquire additional interests in Indian land, as long 
as the additional land is located on the same reservation that 
generated those leasing receipts or land-sale proceeds.
    S. 1721 would authorize the Secretary to spend such 
receipts, or land-sale proceeds without further appropriation. 
Since the start of the program in 1999, the department has 
collected nearly $200,000 from such transactions. CBO estimates 
that enacting this provision would increase direct spending by 
about $200,000 in 2005 and a negligible amount in each 
subsequent year over 2006-2014 period.
    Estimated impact on state, local, and tribal governments: 
S. 1721 contains no intergovernmental mandates as defined in 
UMRA and would impose no significant costs on state, local, or 
tribal governments.
    Estimated impact on the private sector: S. 1721 contains 
two private-sector mandates as defined in UMRA. The act would 
impose a private-sector mandate on individuals who would 
otherwise inherit interests in Indian trust or restricted lands 
under current law. The act also would allow the Secretary of 
the Interior to partition parcels of Indian land for sale under 
certain conditions. In the event that land is partitioned for 
sale without the consent of all the interest owners, S. 1721 
would impose a private-sector mandate on those not consenting 
to the partition. CBO estimates that the direct cost of 
mandates in the act would fall below the annual threshold 
established by UMRA for private-sector mandates ($120 million 
in 2004, adjusted annually for inflation). The act also may 
benefit interest owners in Indian trust and restricted lands 
since it would remove certain restrictions on the use of such 
lands.

Intestate disposition of interests in trust and restricted lands

    S. 1721 would amend federal probate laws that govern how an 
individual's interest in certain parcels of Indian land is 
transferred upon death. The act would impose private-sector 
mandates on certain individuals who would inherit interest in 
trust or restricted lands under current law. Indian trust or 
restricted lands are those lands held by the United States in 
trust for an Indian tribe or held by an individual Indian or 
tribe subject to restrictions against transferring such 
property.
    Currently, the probation of Indian trust and restricted 
lands follows the laws for intestate succession of the state 
where the land is located in cases where there is no tribal 
probate code. In such cases when there are no heirs in the 
immediate family, distant relatives would be eligible to 
inherit land interests under current law. Under S. 1721, such 
distant relatives would not be eligible heirs in certain cases. 
The loss of inheritance could impose costs on persons who would 
otherwise receive an interest in such property. The changes in 
probate code would apply to very small interests in few cases. 
CBO expects that the cost of the mandate would be small.

Partition of highly fractionated Indian lands

    The act also would allow the Secretary of the Interior to 
partition certain parcels of highly fractioned Indian lands for 
sale at the request of the Indian tribe with jurisdiction over 
the land or any owner of an interest in the parcel. To 
partition the land, among other conditions, the Secretary must 
obtain the written consent of the Indian tribe with 
jurisdiction, any owner who has kept residence or operated a 
business (including a farm or ranch) on the land for the three 
years preceding the date of the request for partition, and the 
owners of at least 50 percent of the undivided interests in the 
parcel if at least one owner's undivided interest has a value 
in excess of $1,500. The act would impose a mandate on those 
interest owners not consenting to the partition. The cost that 
the mandate would impose on nonconsenting interest holders 
would be small. The interests involved are small, and all 
owners of interests in the partitioned land would receive 
compensation equal to at least the fair market value of their 
interest in land.
    Previous CBO estimate: On May 13, 2004, CBO transmitted a 
cost estimate for S. 1721 as ordered reported by the Senate 
Committee on Indian Affairs on April 21, 2004. The two versions 
of the legislation and the cost estimates are identical.
    Estimate prepared by: Federal Costs: Lanette J. Walker; 
Impact on State, Local, and Tribal Governments: Marjorie 
Miller; Impact on the Private Sector: Selena Caldera.
    Estimate approved by: Peter H. Fontaine, Deputy Assistant 
Director for Budget Analysis.

                    Compliance With Public Law 104-4

    This bill contains no unfunded mandates.

                Preemption of State, Local or Tribal Law

    This bill is not intended to preempt any State, local or 
tribal law, except those regarding inheritance of property 
affected under this bill.

         Changes in Existing Law Made by the Bill, as Reported

  In compliance with clause 3(e) of rule XIII of the Rules of 
the House of Representatives, changes in existing law made by 
the bill, as reported, are shown as follows (existing law 
proposed to be omitted is enclosed in black brackets, new 
matter is printed in italic, existing law in which no change is 
proposed is shown in roman):

                     INDIAN LAND CONSOLIDATION ACT

                                TITLE II

  Sec. 201. This title may be cited as the ``Indian Land 
Consolidation Act''.
  Sec. 202. For the purpose of this title--
          (1) * * *
          [(2) ``Indian'' means any person who is a member of 
        any Indian tribe or is eligible to become a member of 
        any Indian tribe, or any person who has been found to 
        meet the definition of ``Indian'' under a provision of 
        Federal law if the Secretary determines that using such 
        law's definition of Indian is consistent with the 
        purposes of the Act;]
          (2) ``Indian'' means--
                  (A) any person who is a member of any Indian 
                tribe, is eligible to become a member of any 
                Indian tribe, or is an owner (as of the date of 
                enactment of the American Indian Probate Reform 
                Act of 2004) of a trust or restricted interest 
                in land;
                  (B) any person meeting the definition of 
                Indian under the Indian Reorganization Act (25 
                U.S.C. 479) and the regulations promulgated 
                thereunder; and
                  (C) with respect to the inheritance and 
                ownership of trust or restricted land in the 
                State of California pursuant to section 207, 
                any person described in subparagraph (A) or (B) 
                or any person who owns a trust or restricted 
                interest in a parcel of such land in that 
                State.

           *       *       *       *       *       *       *

          [(4) ``trust or restricted lands'' means lands, title 
        to which is held by the United States in trust for an 
        Indian or an Indian tribe or lands title to which is 
        held by Indians or an Indian tribe subject to a 
        restriction by the United States against alienation; 
        and]
          (4) ``trust or restricted lands'' means lands, title 
        to which is held by the United States in trust for an 
        Indian tribe or individual, or which is held by an 
        Indian tribe or individual subject to a restriction by 
        the United States against alienation; and ``trust or 
        restricted interest in land'' or ``trust or restricted 
        interest in a parcel of land'' means an interest in 
        land, title to which is held in trust by the United 
        States for an Indian tribe or individual, or which is 
        held by an Indian tribe or individual subject to a 
        restriction by the United States against alienation.

           *       *       *       *       *       *       *

          (6) ``parcel of highly fractionated Indian land'' 
        means a parcel of land that the Secretary, pursuant to 
        authority under a provision of this Act, determines to 
        have, as evidenced by the Secretary's records at the 
        time of the determination--
                  (A) 50 or more but less than 100 co-owners of 
                undivided trust or restricted interests, and no 
                1 of such co-owners holds a total undivided 
                trust or restricted interest in the parcel that 
                is greater than 10 percent of the entire 
                undivided ownership of the parcel; or
                  (B) 100 or more co-owners of undivided trust 
                or restricted interests;
          (7) ``land'' means any real property, and includes 
        within its meaning for purposes of this Act 
        improvements permanently affixed to real property;
          (8) ``person'' or ``individual'' means a natural 
        person;
          (9) ``eligible heirs'' means, for purposes of section 
        207 (25 U.S.C. 2206), any of a decedent's children, 
        grandchildren, great grandchildren, full siblings, half 
        siblings by blood, and parents who are--
                  (A) Indian; or
                  (B) lineal descendents within 2 degrees of 
                consanguinity of an Indian; or
                  (C) owners of a trust or restricted interest 
                in a parcel of land for purposes of inheriting 
                by descent, renunciation, or consolidation 
                agreement under section 207 (25 U.S.C. 2206), 
                another trust or restricted interest in such 
                parcel from the decedent; and
          (10) ``without regard to waste'' means, with respect 
        to a life estate interest in land, that the holder of 
        such estate is entitled to the receipt of all income, 
        including bonuses and royalties, from such land to the 
        exclusion of the remaindermen.

           *       *       *       *       *       *       *

  Sec. 205. (a) * * *

           *       *       *       *       *       *       *

  (d) Partition of Highly Fractionated Indian Lands.--
          (1) Applicability.--This subsection shall be 
        applicable only to parcels of land (including surface 
        and subsurface interests, except with respect to a 
        subsurface interest that has been severed from the 
        surface interest, in which case this subsection shall 
        apply only to the surface interest) which the Secretary 
        has determined, pursuant to paragraph (2)(B), to be 
        parcels of highly fractionated Indian land.
          (2) Requirements.--Each partition action under this 
        subsection shall be conducted by the Secretary in 
        accordance with the following requirements:
                  (A) Application.--Upon receipt of any payment 
                or bond required under subparagraph (B), the 
                Secretary shall commence a process for 
                partitioning a parcel of land by sale in 
                accordance with the provisions of this 
                subsection upon receipt of an application by--
                          (i) the Indian tribe with 
                        jurisdiction over the subject land that 
                        owns an undivided interest in the 
                        parcel of land; or
                          (ii) any person owning an undivided 
                        interest in the parcel of land who is 
                        eligible to bid at the sale of the 
                        parcel pursuant to subclause (II), 
                        (III), or (IV) of subparagraph (I)(i);
                provided that no such application shall be 
                valid or considered if it is received by the 
                Secretary prior to the date that is 1 year 
                after the date on which notice is published 
                pursuant to section 8(a)(4) of the American 
                Indian Probate Reform Act of 2004.
                  (B) Costs of serving notice and 
                publication.--The costs of serving and 
                publishing notice under subparagraph (F) shall 
                be borne by the applicant. Upon receiving 
                written notice from the Secretary, the 
                applicant must pay to the Secretary an amount 
                determined by the Secretary to be the estimated 
                costs of such service of notice and 
                publication, or furnish a sufficient bond for 
                such estimated costs within the time stated in 
                the notice, failing which, unless an extension 
                is granted by the Secretary, the Secretary 
                shall not be required to commence the partition 
                process under subparagraph (A) and may deny the 
                application. The Secretary shall have the 
                discretion and authority in any case to waive 
                either the payment or the bond (or any portion 
                of such payment or bond) otherwise required by 
                this subparagraph, upon making a determination 
                that such waiver will further the policies of 
                this Act.
                  (C) Determination.--Upon receipt of an 
                application pursuant to subparagraph (A), the 
                Secretary shall determine whether the subject 
                parcel meets the requirements set forth in 
                section 202(6) (25 U.S.C. 2201(6)) to be 
                classified as a parcel of highly fractionated 
                Indian land.
                  (D) Consent requirements.--
                          (i) In general.--A parcel of land may 
                        be partitioned under this subsection 
                        only if the applicant obtains the 
                        written consent of--
                                  (I) the Indian tribe with 
                                jurisdiction over the subject 
                                land if such Indian tribe owns 
                                an undivided interest in the 
                                parcel;
                                  (II) any owner who, for the 
                                3-year period immediately 
                                preceding the date on which the 
                                Secretary receives the 
                                application, has
                                          (aa) continuously 
                                        maintained a bona fide 
                                        residence on the 
                                        parcel; or
                                          (bb) operated a bona 
                                        fide farm, ranch, or 
                                        other business on the 
                                        parcel; and
                                  (III) the owners (including 
                                parents of minor owners and 
                                legal guardians of incompetent 
                                owners) of at least 50 percent 
                                of the undivided interests in 
                                the parcel, but only in cases 
                                where the Secretary determines 
                                that, based on the final 
                                appraisal prepared pursuant to 
                                subparagraph (F), any 1 owner's 
                                total undivided interest in the 
                                parcel (not including the 
                                interest of an Indian tribe or 
                                that of the owner requesting 
                                the partition) has a value in 
                                excess of $1,500.
                        Any consent required by this clause 
                        must be in writing and acknowledged 
                        before a notary public (or other 
                        official authorized to make 
                        acknowledgments), and shall be approved 
                        by Secretary unless the Secretary has 
                        reason to believe that the consent was 
                        obtained as a result of fraud or undue 
                        influence.
                          (ii) Consent by the secretary on 
                        behalf of certain individuals.--For the 
                        purposes of clause (i)(III), the 
                        Secretary may consent on behalf of--
                                  (I) undetermined heirs of 
                                trust or restricted interests 
                                and owners of such interests 
                                who are minors and legal 
                                incompetents having no parents 
                                or legal guardian; and
                                  (II) missing owners or owners 
                                of trust or restricted 
                                interests whose whereabouts are 
                                unknown, but only after a 
                                search for such owners has been 
                                completed in accordance with 
                                the provisions of this 
                                subsection.
                  (E) Appraisal.--After the Secretary has 
                determined that the subject parcel is a parcel 
                of highly fractionated Indian land pursuant to 
                subparagraph (C), the Secretary shall cause to 
                be made, in accordance with the provisions of 
                this Act for establishing fair market value, an 
                appraisal of the fair market value of the 
                subject parcel.
                  (F) Notice to owners on completion of 
                appraisal.--Upon completion of the appraisal, 
                the Secretary shall give notice of the 
                requested partition and appraisal to all owners 
                of undivided interests in the parcel, in 
                accordance with principles of due process. Such 
                notice shall include the following 
                requirements:
                          (i) Written notice.--The Secretary 
                        shall attempt to give each owner 
                        written notice of the partition action 
                        stating the following:
                                  (I) That a proceeding to 
                                partition the parcel of land by 
                                sale has been commenced.
                                  (II) The legal description of 
                                the subject parcel.
                                  (III) The owner's ownership 
                                interest in the subject parcel 
                                as evidenced by the Secretary's 
                                records as of the date that 
                                owners are determined in 
                                accordance with clause (ii).
                                  (IV) The results of the 
                                appraisal.
                                  (V) The owner's right to 
                                receive a copy of the appraisal 
                                upon written request.
                                  (VI) The owner's right to 
                                comment on or object to the 
                                proposed partition and the 
                                appraisal.
                                  (VII) That the owner must 
                                timely comment on or object in 
                                writing to the proposed 
                                partition or the appraisal, in 
                                order to receive notice of 
                                approval of the appraisal and 
                                right to appeal.
                                  (VIII) The date by which the 
                                owner's written comments or 
                                objections must be received, 
                                which shall not be less than 90 
                                days after the date that the 
                                notice is mailed under this 
                                clause or last published under 
                                clause (ii)(II).
                                  (IX) The address for 
                                requesting copies of the 
                                appraisal and for submitting 
                                written comments or objections.
                                  (X) The name and telephone 
                                number of the official to be 
                                contacted for purposes of 
                                obtaining information regarding 
                                the proceeding, including the 
                                time and date of the auction of 
                                the land or the date for 
                                submitting sealed bids.
                                  (XI) Any other information 
                                the Secretary deems to be 
                                appropriate.
                          (ii) Manner of service.--
                                  (I) Service by certified 
                                mail.--The Secretary shall use 
                                due diligence to provide all 
                                owners of interests in the 
                                subject parcel, as evidenced by 
                                the Secretary's records at the 
                                time of the determination under 
                                subparagraph (C), with actual 
                                notice of the partition 
                                proceedings by mailing a copy 
                                of the written notice described 
                                in clause (i) by certified 
                                mail, restricted delivery, to 
                                each such owner at the owner's 
                                last known address. For 
                                purposes of this subsection, 
                                owners shall be determined from 
                                the Secretary's land title 
                                records as of the date of the 
                                determination under 
                                subparagraph (C) or a date that 
                                is not more than 90 days prior 
                                to the date of mailing under 
                                this clause, whichever is 
                                later. In the event the written 
                                notice to an owner is returned 
                                undelivered, the Secretary 
                                shall attempt to obtain a 
                                current address for such owner 
                                by conducting a reasonable 
                                search (including a reasonable 
                                search of records maintained by 
                                local, state, Federal and 
                                tribal governments and 
                                agencies) and by inquiring with 
                                the Indian tribe with 
                                jurisdiction over the subject 
                                parcel, and, if different from 
                                that tribe, the Indian tribe of 
                                which the owner is a member, 
                                and, if successful in locating 
                                any such owner, send written 
                                notice by certified mail in 
                                accordance with this subclause.
                                  (II) Notice by publication.--
                                The Secretary shall give notice 
                                by publication of the partition 
                                proceedings to all owners that 
                                the Secretary was unable to 
                                serve pursuant to subclause 
                                (I), and to unknown heirs and 
                                assigns by--
                                          (aa) publishing the 
                                        notice described in 
                                        clause (i) at least 2 
                                        times in a newspaper of 
                                        general circulation in 
                                        the county or counties 
                                        where the subject 
                                        parcel of land is 
                                        located or, if there is 
                                        an Indian tribe with 
                                        jurisdiction over the 
                                        parcel of land and that 
                                        tribe publishes a 
                                        tribal newspaper or 
                                        newsletter at least 
                                        once every month, 1 
                                        time in such newspaper 
                                        of general circulation 
                                        and 1 time in such 
                                        tribal newspaper or 
                                        newsletter;
                                          (bb) posting such 
                                        notice in a conspicuous 
                                        place in the tribal 
                                        headquarters or 
                                        administration building 
                                        (or such other tribal 
                                        building determined by 
                                        the Secretary to be 
                                        most appropriate for 
                                        giving public notice) 
                                        of the Indian tribe 
                                        with jurisdiction over 
                                        the parcel of land, if 
                                        any; and
                                          (cc) in addition to 
                                        the foregoing, in the 
                                        Secretary's discretion, 
                                        publishing notice in 
                                        any other place or 
                                        means that the 
                                        Secretary determines to 
                                        be appropriate.
                  (G) Review of comments on appraisal.--
                          (i) In general.--After reviewing and 
                        considering comments or information 
                        timely submitted by any owner of an 
                        interest in the parcel in response to 
                        the notice required under subparagraph 
                        (F), the Secretary may, consistent with 
                        the provisions of this Act for 
                        establishing fair market value--
                                  (I) order a new appraisal; or
                                  (II) approve the appraisal;
                provided that if the Secretary orders a new 
                appraisal under subclause (I), notice of the 
                new appraisal shall be given as specified in 
                clause (ii).
                          (ii) Notice.--Notice shall be given--
                                  (I) in accordance with 
                                subparagraph (H), where the new 
                                appraisal results in a higher 
                                valuation of the land; or
                                  (II) in accordance with 
                                subparagraph (F)(ii), where the 
                                new appraisal results in a 
                                lower valuation of the land.
                  (H) Notice to owners of approval of appraisal 
                and right to appeal.--Upon making the 
                determination under subparagraph (G), the 
                Secretary shall provide to the Indian tribe 
                with jurisdiction over the subject land and to 
                all persons who submitted written comments on 
                or objections to the proposed partition or 
                appraisal, a written notice to be served on 
                such tribe and persons by certified mail. Such 
                notice shall state--
                          (i) the results of the appraisal;
                          (ii) that the owner has the right to 
                        review a copy of the appraisal upon 
                        request;
                          (iii) that the land will be sold for 
                        not less than the appraised value, 
                        subject to the consent requirements 
                        under paragraph (2)(D);
                          (iv) the time of the sale or for 
                        submitting bids under subparagraph (I);
                          (v) that the owner has the right, 
                        under the Secretary's regulations 
                        governing administrative appeals, to 
                        pursue an administrative appeal from--
                                  (I) the determination that 
                                the land may be partitioned by 
                                sale under the provisions of 
                                this section; and
                                  (II) the Secretary's order 
                                approving the appraisal;
                          (vi) the date by which an 
                        administrative appeal must be taken, a 
                        citation to the provisions of the 
                        Secretary's regulations that will 
                        govern the owner's appeal, and any 
                        other information required by such 
                        regulations to be given to parties 
                        affected by adverse decisions of the 
                        Secretary;
                          (vii) in cases where the Secretary 
                        determines that any person's undivided 
                        trust or restricted interest in the 
                        parcel exceeds $1,500 pursuant to 
                        paragraph (2)(D)(iii), that the 
                        Secretary has authority to consent to 
                        the partition on behalf of undetermined 
                        heirs of trust or restricted interests 
                        in the parcel and owners of such 
                        interests whose whereabouts are 
                        unknown; and
                          (viii) any other information the 
                        Secretary deems to be appropriate.
                  (I) Sale to eligible purchaser.--
                          (i) In general.--Subject to clauses 
                        (ii) and (iii) and the consent 
                        requirements of paragraph (2)(D), the 
                        Secretary shall, after providing notice 
                        to owners under subparagraph (H), 
                        including the time and place of sale or 
                        for receiving sealed bids, at public 
                        auction or by sealed bid (whichever of 
                        such methods of sale the Secretary 
                        determines to be more appropriate under 
                        the circumstances) sell the parcel of 
                        land by competitive bid for not less 
                        than the final appraised fair market 
                        value to the highest bidder from among 
                        the following eligible bidders:
                                  (I) The Indian tribe, if any, 
                                with jurisdiction over the 
                                trust or restricted interests 
                                in the parcel being sold.
                                  (II) Any person who is a 
                                member, or is eligible to be a 
                                member, of the Indian tribe 
                                described in subclause (I).
                                  (III) Any person who is a 
                                member, or is eligible to be a 
                                member, of an Indian tribe but 
                                not of the tribe described in 
                                subclause (I), but only if such 
                                person already owns an 
                                undivided interest in the 
                                parcel at the time of sale.
                                  (IV) Any lineal descendent of 
                                the original allottee of the 
                                parcel who is a member or is 
                                eligible to be a member of an 
                                Indian tribe or, with respect 
                                to a parcel located in the 
                                State of California that is not 
                                within an Indian tribe's 
                                reservation or not otherwise 
                                subject to the jurisdiction of 
                                an Indian tribe, who is a 
                                member, or eligible to be a 
                                member, of an Indian tribe or 
                                owns a trust or restricted 
                                interest in the parcel.
                          (ii) Right to match highest bid.--If 
                        the highest bidder is a person who is 
                        only eligible to bid under clause 
                        (i)(III), the Indian tribe that has 
                        jurisdiction over the parcel, if any, 
                        shall have the right to match the 
                        highest bid and acquire the parcel, but 
                        only if--
                                  (I) prior to the date of the 
                                sale, the governing body of 
                                such tribe has adopted a tribal 
                                law or resolution reserving its 
                                right to match the bids of such 
                                nonmember bidders in partition 
                                sales under this subsection and 
                                delivered a copy of such law or 
                                resolution to the Secretary; 
                                and
                                  (II) the parcel is not 
                                acquired under clause (iii).
                          (iii) Right to purchase.--Any person 
                        who is a member, or eligible to be a 
                        member, of the Indian tribe with 
                        jurisdiction over the trust or 
                        restricted interests in the parcel 
                        being sold and is, as of the time of 
                        sale under this subparagraph, the owner 
                        of the largest undivided interest in 
                        the parcel shall have a right to 
                        purchase the parcel by tendering to the 
                        Secretary an amount equal to the 
                        highest sufficient bid submitted at the 
                        sale, less that amount of the bid 
                        attributable to such owner's share, but 
                        only if--
                                  (I) the owner submitted a 
                                sufficient bid at the sale;
                                  (II) the owner's total 
                                undivided interest in the 
                                parcel immediately prior to the 
                                sale was--
                                          (aa) greater than the 
                                        undivided interest held 
                                        by any other co-owners, 
                                        except where there are 
                                        2 or more co-owners 
                                        whose interests are of 
                                        equal size but larger 
                                        than the interests of 
                                        all other co-owners and 
                                        such owners of the 
                                        largest interests have 
                                        agreed in writing that 
                                        1 of them may exercise 
                                        the right of purchase 
                                        under this clause; and
                                          (bb) equal to or 
                                        greater than 20 percent 
                                        of the entire undivided 
                                        ownership of the 
                                        parcel;
                                  (III) within 3 days following 
                                the date of the auction or for 
                                receiving sealed bids, and in 
                                accordance with the regulations 
                                adopted to implement this 
                                section, the owner delivers to 
                                the Secretary a written notice 
                                of intent to exercise the 
                                owner's rights under this 
                                clause; and
                                  (IV) such owner tenders the 
                                amount of the purchase price 
                                required under this clause--
                                          (aa) not less than 30 
                                        days after the date of 
                                        the auction or time for 
                                        receiving sealed bids; 
                                        and
                                          (bb) in accordance 
                                        with any requirements 
                                        of the regulations 
                                        promulgated to 
                                        implement this section.
                          (iv) Interest acquired.--A purchaser 
                        of a parcel of land under this 
                        subparagraph shall acquire title to the 
                        parcel in trust or restricted status, 
                        free and clear of any and all claims of 
                        title or ownership of all persons or 
                        entities (not including the United 
                        States) owning or claiming to own an 
                        interest in such parcel prior to the 
                        time of sale.
                  (J) Proceeds of sale.--
                          (i) Subject to clauses (ii) and 
                        (iii), the Secretary shall distribute 
                        the proceeds of sale of a parcel of 
                        land under the provisions of this 
                        section to the owners of interests in 
                        such parcel in proportion to their 
                        respective ownership interests.
                          (ii) Proceeds attributable to the 
                        sale of trust or restricted interests 
                        shall be maintained in accounts as 
                        trust personalty.
                          (iii) Proceeds attributable to the 
                        sale of interests of owners whose 
                        whereabouts are unknown, of 
                        undetermined heirs, and of other 
                        persons whose ownership interests have 
                        not been recorded shall be held by the 
                        Secretary until such owners, heirs, or 
                        other persons have been determined, at 
                        which time such proceeds shall be 
                        distributed in accordance with clauses 
                        (i) and (ii).
                  (K) Lack of bids or consent.--
                          (i) Lack of bids.--If no bidder 
                        described in subparagraph (I) presents 
                        a bid that equals or exceeds the final 
                        appraised value, the Secretary may 
                        either--
                                  (I) purchase the parcel of 
                                land for its appraised fair 
                                market value on behalf of the 
                                Indian tribe with jurisdiction 
                                over the land, subject to the 
                                lien and procedures provided 
                                under section 214(b) (25 U.S.C. 
                                2213(b)); or
                                  (II) terminate the partition 
                                process.
                          (ii) Lack of consent.--If an 
                        applicant fails to obtain any 
                        applicable consent required under the 
                        provisions of subparagraph (D) by the 
                        date established by the Secretary prior 
                        to the proposed sale, the Secretary may 
                        either extend the time for obtaining 
                        any such consent or deny the request 
                        for partition.
          (3) Enforcement.--
                  (A) In general.--If a partition is approved 
                under this subsection and an owner of an 
                interest in the parcel of land refuses to 
                surrender possession in accordance with the 
                partition decision, or refuses to execute any 
                conveyance necessary to implement the 
                partition, then any affected owner or the 
                United States may--
                          (i) commence a civil action in the 
                        United States district court for the 
                        district in which the parcel of land is 
                        located; and
                          (ii) request that the court issue an 
                        order for ejectment or any other 
                        appropriate remedy necessary for the 
                        partition of the land by sale.
                  (B) Federal role.--With respect to any civil 
                action brought under subparagraph (A)--
                          (i) the United States--
                                  (I) shall receive notice of 
                                the civil action; and
                                  (II) may be a party to the 
                                civil action; and
                          (ii) the civil action shall not be 
                        dismissed, and no relief requested 
                        shall be denied, on the ground that the 
                        civil action is against the United 
                        States or that the United States is a 
                        necessary and indispensable party.
          (4) Grants and loans.--The Secretary may provide 
        grants and low interest loans to successful bidders at 
        sales authorized by this subsection, provided that--
                  (A) the total amount of such assistance in 
                any such sale shall not exceed 20 percent of 
                the appraised value of the parcel of land sold; 
                and
                  (B) the grant or loan funds provided shall 
                only be applied toward the purchase price of 
                the parcel of land sold.
          (5) Regulations.--The Secretary is authorized to 
        adopt such regulations as may be necessary to implement 
        the provisions of this subsection. Such regulations 
        shall include provisions for giving notice of sales to 
        prospective purchasers eligible to submit bids at sales 
        conducted under paragraph (2)(I).

SEC. 206. TRIBAL PROBATE CODES; ACQUISITIONS OF FRACTIONAL INTERESTS BY 
                    TRIBES.

  (a) Tribal Probate Codes.--
          (1) * * *

           *       *       *       *       *       *       *

          [(3) Limitations.--The Secretary shall not approve a 
        tribal probate code if such code prevents an Indian 
        person from inheriting an interest in an allotment that 
        was originally allotted to his or her lineal ancestor.]
          (3) Tribal probate codes.--Except as provided in any 
        applicable Federal law, the Secretary shall not approve 
        a tribal probate code, or an amendment to such a code, 
        that prohibits the devise of an interest in trust or 
        restricted land to--
                  (A) an Indian lineal descendant of the 
                original allottee; or
                  (B) an Indian who is not a member of the 
                Indian tribe with jurisdiction over such an 
                interest;
        unless the code provides for--
                          (i) the renouncing of interests to 
                        eligible devisees in accordance with 
                        the code;
                          (ii) the opportunity for a devisee 
                        who is the spouse or lineal descendant 
                        of a testator to reserve a life estate 
                        without regard to waste; and
                          (iii) payment of fair market value in 
                        the manner prescribed under subsection 
                        (c)(2).

           *       *       *       *       *       *       *

  (c) Authority Available to Indian Tribes.--
          [(1) In general.--]
          (1) Authority.--
                  (A) In general.--If the owner of an interest 
                in trust or restricted land devises an interest 
                in such land to a non-Indian under section 
                207(a)(6)(A), the Indian tribe that exercises 
                jurisdiction over the parcel of land involved 
                may acquire such interest by paying to the 
                Secretary the fair market value of such 
                interest, as determined by the Secretary on the 
                date of the decedent's death. [The Secretary 
                shall transfer such payment to the devisee.]
                  (B) Transfer.--The Secretary shall transfer 
                payments received under subparagraph (A) to any 
                person or persons who would have received an 
                interest in land if the interest had not been 
                acquired by the Indian tribe in accordance with 
                this paragraph.
          (2) Limitation.--
                  [(A) In general.--Paragraph (1) shall not 
                apply]
                  (A) Inapplicability to certain interests.--
                          (i) In general.--Paragraph (1) shall 
                        not apply to an interest in trust or 
                        restricted land [if, while] if--
                                  (I) while the decedent's 
                                estate is pending before the 
                                Secretary, the non-Indian 
                                devisee renounces the interest 
                                in favor of an Indian 
                                person[.]; or
                                  (II)(aa) the interest is part 
                                of a family farm that is 
                                devised to a member of the 
                                family of the decedent; and
                                  (bb) the devisee agrees that 
                                the Indian tribe with 
                                jurisdiction over the land will 
                                have the opportunity to acquire 
                                the interest for fair market 
                                value if the interest is 
                                offered for sale to a person or 
                                entity that is not a member of 
                                the family of the owner of the 
                                land.
                          (ii) Recording of interest.--On 
                        request by the Indian tribe described 
                        in clause (i)(II)(bb), a restriction 
                        relating to the acquisition by the 
                        Indian tribe of an interest in a family 
                        farm involved shall be recorded as part 
                        of the deed relating to the interest 
                        involved.
                          (iii) Mortgage and foreclosure.--
                        Nothing in clause (i)(II) limits--
                                  (I) the ability of an owner 
                                of land to which that clause 
                                applies to mortgage the land; 
                                or
                                  (II) the right of the entity 
                                holding such a mortgage to 
                                foreclose or otherwise enforce 
                                such a mortgage agreement in 
                                accordance with applicable law.
                          (iv) Definition of ``member of the 
                        family''.--In this paragraph, the term 
                        ``member of the family'', with respect 
                        to a decedent or landowner, means--
                                  (I) a lineal descendant of a 
                                decedent or landowner;
                                  (II) a lineal descendant of 
                                the grandparent of a decedent 
                                or landowner;
                                  (III) the spouse of a 
                                descendant or landowner 
                                described in subclause (I) or 
                                (II); and
                                  (IV) the spouse of a decedent 
                                or landowner.

           *       *       *       *       *       *       *


SEC. 207. DESCENT AND DISTRIBUTION.

  [(a) Testamentary Disposition.--
          [(1) In general.--Interests in trust or restricted 
        land may be devised only to--
                  [(A) the decedent's Indian spouse or any 
                other Indian person; or
                  [(B) the Indian tribe with jurisdiction over 
                the land so devised.
          [(2) Life estate.--Any devise of an interest in trust 
        or restricted land to a non-Indian shall create a life 
        estate with respect to such interest.
          [(3) Remainder.--
                  [(A) In general.--Except where the remainder 
                from the life estate referred to in paragraph 
                (2) is devised to an Indian, such remainder 
                shall descend to the decedent's Indian spouse 
                or Indian heirs of the first or second degree 
                pursuant to the applicable law of intestate 
                succession.
                  [(B) Descent of interests.--If a decedent 
                described in subparagraph (A) has no Indian 
                heirs of the first or second degree, the 
                remainder interest described in such 
                subparagraph shall descend to any of the 
                decedent's collateral heirs of the first or 
                second degree, pursuant to the applicable laws 
                of intestate succession, if on the date of the 
                decedent's death, such heirs were a co-owner of 
                an interest in the parcel of trust or 
                restricted land involved.
                  [(C) Definition.--For purposes of this 
                section, the term ``collateral heirs of the 
                first or second degree'' means the brothers, 
                sisters, aunts, uncles, nieces, nephews, and 
                first cousins, of a decedent.
          [(4) Descent to tribe.--If the remainder interest 
        described in paragraph (3)(A) does not descend to an 
        Indian heir or heirs it shall descend to the Indian 
        tribe that exercises jurisdiction over the parcel of 
        trust or restricted lands involved, subject to 
        paragraph (5).
          [(5) Acquisition of interest by indian co-owners.--An 
        Indian co-owner of a parcel of trust or restricted land 
        may prevent the descent of an interest in Indian land 
        to an Indian tribe under paragraph (4) by paying into 
        the decedent's estate the fair market value of the 
        interest in such land. If more than 1 Indian co-owner 
        offers to pay for such an interest, the highest bidder 
        shall obtain the interest. If payment is not received 
        before the close of the probate of the decedent's 
        estate, the interest shall descend to the tribe that 
        exercises jurisdiction over the parcel.
          [(6) Special rule.--
                  [(A) In general.--Notwithstanding paragraph 
                (2), an owner of trust or restricted land who 
                does not have an Indian spouse, Indian lineal 
                descendant, an Indian heir of the first or 
                second degree, or an Indian collateral heir of 
                the first or second degree, may devise his or 
                her interests in such land to any of the 
                decedent's heirs of the first or second degree 
                or collateral heirs of the first or second 
                degree.
                  [(B) Acquisition of interest by tribe.--An 
                Indian tribe that exercises jurisdiction over 
                an interest in trust or restricted land 
                described in subparagraph (A) may acquire any 
                interest devised to a non-Indian as provided 
                for in section 206(c).
  [(b) Intestate Succession.--
          [(1) In general.--An interest in trust or restricted 
        land shall pass by intestate succession only to a 
        decedent's spouse or heirs of the first or second 
        degree, pursuant to the applicable law of intestate 
        succession.
          [(2) Life estate.--Notwithstanding paragraph (1), 
        with respect to land described in such paragraph, a 
        non-Indian spouse or non-Indian heirs of the first or 
        second degree shall only receive a life estate in such 
        land.
          [(3) Descent of interests.--If a decedent described 
        in paragraph (1) has no Indian heirs of the first or 
        second degree, the remainder interest from the life 
        estate referred to in paragraph (2) shall descend to 
        any of the decedent's collateral Indian heirs of the 
        first or second degree, pursuant to the applicable laws 
        of intestate succession, if on the date of the 
        decedent's death, such heirs were a co-owner of an 
        interest in the parcel of trust or restricted land 
        involved.
          [(4) Descent to tribe.--If the remainder interest 
        described in paragraph (3) does not descend to an 
        Indian heir or heirs it shall descend to the Indian 
        tribe that exercises jurisdiction over the parcel of 
        trust or restricted lands involved, subject to 
        paragraph (5).
          [(5) Acquisition of interest by indian co-owners.--An 
        Indian co-owner of a parcel of trust or restricted land 
        may prevent the descent of an interest in such land for 
        which there is no heir of the first or second degree by 
        paying into the decedent's estate the fair market value 
        of the interest in such land. If more than 1 Indian co-
        owner makes an offer to pay for such an interest, the 
        highest bidder shall obtain the interest. If no such 
        offer is made, the interest shall descend to the Indian 
        tribe that exercises jurisdiction over the parcel of 
        land involved.]
  (a) Nontestamentary Disposition.--
          (1) Rules of descent.--Subject to any applicable 
        Federal law relating to the devise or descent of trust 
        or restricted property, any trust or restricted 
        interest in land or interest in trust personalty that 
        is not disposed of by a valid will--
                  (A) shall descend according to an applicable 
                tribal probate code approved in accordance with 
                section 206; or
                  (B) in the case of a trust or restricted 
                interest in land or interest in trust 
                personalty to which a tribal probate code does 
                not apply, shall descend in accordance with--
                          (i) paragraphs (2) through (5); and
                          (ii) other applicable Federal law.
          (2) Rules governing descent of estate.--
                  (A) Surviving spouse.--If there is a 
                surviving spouse of the decedent, such spouse 
                shall receive trust and restricted land and 
                trust personalty in the estate as follows:
                          (i) If the decedent is survived by 1 
                        or more eligible heirs described in 
                        subparagraph (B) (i), (ii), (iii), or 
                        (iv), the surviving spouse shall 
                        receive \1/3\ of the trust personalty 
                        of the decedent and a life estate 
                        without regard to waste in the 
                        interests in trust or restricted lands 
                        of the decedent.
                          (ii) If there are no eligible heirs 
                        described in subparagraph (B) (i), 
                        (ii), (iii), or (iv), the surviving 
                        spouse shall receive all of the trust 
                        personalty of the decedent and a life 
                        estate without regard to waste in the 
                        trust or restricted lands of the 
                        decedent.
                          (iii) The remainder shall pass as set 
                        forth in subparagraph (B).
                          (iv) Trust personalty passing to a 
                        surviving spouse under the provisions 
                        of this subparagraph shall be 
                        maintained by the Secretary in an 
                        account as trust personalty, but only 
                        if such spouse is Indian.
                  (B) Individual and tribal heirs.--Where there 
                is no surviving spouse of the decedent, or 
                there is a remainder interest pursuant to 
                subparagraph (A), the trust or restricted 
                estate or such remainder shall, subject to 
                subparagraphs (A) and (D), pass as follows:
                          (i) To those of the decedent's 
                        children who are eligible heirs (or if 
                        1 or more of such children do not 
                        survive the decedent, the children of 
                        any such deceased child who are 
                        eligible heirs, by right of 
                        representation, but only if such 
                        children of the deceased child survive 
                        the decedent) in equal shares.
                          (ii) If the property does not pass 
                        under clause (i), to those of the 
                        decedent's surviving great-
                        grandchildren who are eligible heirs, 
                        in equal shares.
                          (iii) If the property does not pass 
                        under clause (i) or (ii), to the 
                        decedent's surviving parent who is an 
                        eligible heir, and if both parents 
                        survive the decedent and are both 
                        eligible heirs, to both parents in 
                        equal shares.
                          (iv) If the property does not pass 
                        under clause (i), (ii), or (iii), to 
                        those of the decedent's surviving 
                        siblings who are eligible heirs, in 
                        equal shares.
                          (v) If the property does not pass 
                        under clause (i), (ii), (iii), or (iv), 
                        to the Indian tribe with jurisdiction 
                        over the interests in trust or 
                        restricted lands;
                except that notwithstanding clause (v), an 
                Indian co-owner (including the Indian tribe 
                referred to in clause (v)) of a parcel of trust 
                or restricted land may acquire an interest that 
                would otherwise descend under that clause by 
                paying into the estate of the decedent, before 
                the close of the probate of the estate, the 
                fair market value of the interest in the land; 
                if more than 1 Indian co-owner offers to pay 
                for such interest, the highest bidder shall 
                acquire the interest.
                  (C) No indian tribe.--
                          (i) In general.--If there is no 
                        Indian tribe with jurisdiction over the 
                        interests in trust or restricted lands 
                        that would otherwise descend under 
                        subparagraph (B)(v), then such 
                        interests shall be divided equally 
                        among co-owners of trust or restricted 
                        interests in the parcel; if there are 
                        no such co-owners, then to the United 
                        States, provided that any such 
                        interests in land passing to the United 
                        States under this subparagraph shall be 
                        sold by the Secretary and the proceeds 
                        from such sale deposited into the land 
                        acquisition fund established under 
                        section 216 (25 U.S.C. 2215) and used 
                        for the purposes described in 
                        subsection (b) of that section.
                          (ii) Contiguous parcel.--If the 
                        interests passing to the United States 
                        under this subparagraph are in a parcel 
                        of land that is contiguous to another 
                        parcel of trust or restricted land, the 
                        Secretary shall give the owner or 
                        owners of the trust or restricted 
                        interest in the contiguous parcel the 
                        first opportunity to purchase the 
                        interest at not less than fair market 
                        value determined in accordance with 
                        this Act. If more than 1 such owner in 
                        the contiguous parcel request to 
                        purchase the parcel, the Secretary 
                        shall sell the parcel by public auction 
                        or sealed bid (as determined by the 
                        Secretary) at not less than fair market 
                        value to the owner of a trust or 
                        restricted interest in the contiguous 
                        parcel submitting the highest bid.
                  (D) Intestate descent of small fractional 
                interests in land.--
                          (i) General rule.--Notwithstanding 
                        subparagraphs (A) and (B), and subject 
                        to any applicable Federal law, any 
                        trust or restricted interest in land in 
                        the decedent's estate that is not 
                        disposed of by a valid will and 
                        represents less than 5 percent of the 
                        entire undivided ownership of the 
                        parcel of land of which such interest 
                        is a part, as evidenced by the 
                        decedent's estate inventory at the time 
                        of the heirship determination, shall 
                        descend in accordance with clauses (ii) 
                        through (iv).
                          (ii) Surviving spouse.--If there is a 
                        surviving spouse, and such spouse was 
                        residing on a parcel of land described 
                        in clause (i) at the time of the 
                        decedent's death, the spouse shall 
                        receive a life estate without regard to 
                        waste in the decedent's trust or 
                        restricted interest in only such 
                        parcel, and the remainder interest in 
                        that parcel shall pass in accordance 
                        with clause (iii).
                          (iii) Single heir rule.--Where there 
                        is no life estate created under clause 
                        (ii) or there is a remainder interest 
                        under that clause, the trust or 
                        restricted interest or remainder 
                        interest that is subject to this 
                        subparagraph shall descend, in trust or 
                        restricted status, to--
                                  (I) the decedent's surviving 
                                child, but only if such child 
                                is an eligible heir; and if 2 
                                or more surviving children are 
                                eligible heirs, then to the 
                                oldest of such children;
                                  (II) if the interest does not 
                                pass under subclause (I), the 
                                decedent's surviving 
                                grandchild, but only if such 
                                grandchild is an eligible heir; 
                                and if 2 or more surviving 
                                grandchildren are eligible 
                                heirs, then to the oldest of 
                                such grandchildren;
                                  (III) if the interest does 
                                not pass under subclause (I) or 
                                (II), the decedent's surviving 
                                great grandchild, but only if 
                                such great grandchild is an 
                                eligible heir; and if 2 or more 
                                surviving great grandchildren 
                                are eligible heirs, then to the 
                                oldest of such great 
                                grandchildren;
                                  (IV) if the interest does not 
                                pass under subclause (I), (II), 
                                or (III), the Indian tribe with 
                                jurisdiction over the interest; 
                                or
                                  (V) if the interest does not 
                                pass under subclause (I), (II), 
                                or (III), and there is no such 
                                Indian tribe to inherit the 
                                property under subclause (IV), 
                                the interest shall be divided 
                                equally among co-owners of 
                                trust or restricted interests 
                                in the parcel; and if there are 
                                no such co-owners, then to the 
                                United States, to be sold, and 
                                the proceeds from sale used, in 
                                the same manner provided in 
                                subparagraph (C).
                The determination of which person is the oldest 
                eligible heir for inheritance purposes under 
                this clause shall be made by the Secretary in 
                the decedent's probate proceeding and shall be 
                consistent with the provisions of this Act.
                          (iv) Exceptions.--Notwithstanding 
                        clause (iii)--
                                  (I)(aa) the heir of an 
                                interest under clause (iii), 
                                unless the heir is a minor or 
                                incompetent person, may agree 
                                in writing entered into the 
                                record of the decedent's 
                                probate proceeding to renounce 
                                such interest, in trust or 
                                restricted status, in favor 
                                of--
                                          (AA) any other 
                                        eligible heir or Indian 
                                        person related to the 
                                        heir by blood, but in 
                                        any case never in favor 
                                        of more than 1 such 
                                        heir or person;
                                          (BB) any co-owner of 
                                        another trust or 
                                        restricted interest in 
                                        such parcel of land; or
                                          (CC) the Indian tribe 
                                        with jurisdiction over 
                                        the interest, if any; 
                                        and
                                  (bb) the Secretary shall give 
                                effect to such agreement in the 
                                distribution of the interest in 
                                the probate proceeding; and
                                  (II) the governing body of 
                                the Indian tribe with 
                                jurisdiction over an interest 
                                in trust or restricted land 
                                that is subject to the 
                                provisions of this subparagraph 
                                may adopt a rule of intestate 
                                descent applicable to such 
                                interest that differs from the 
                                order of decedent set forth in 
                                clause (iii). The Secretary 
                                shall apply such rule to the 
                                interest in distributing the 
                                decedent's estate, but only 
                                if--
                                          (aa) a copy of the 
                                        tribal rule is 
                                        delivered to the 
                                        official designated by 
                                        the Secretary to 
                                        receive copies of 
                                        tribal rules for the 
                                        purposes of this 
                                        clause;
                                          (bb) the tribal rule 
                                        provides for the 
                                        intestate inheritance 
                                        of such interest by no 
                                        more than 1 heir, so 
                                        that the interest does 
                                        not further 
                                        fractionate;
                                          (cc) the tribal rule 
                                        does not apply to any 
                                        interest disposed of by 
                                        a valid will;
                                          (dd) the decedent 
                                        died on or after the 
                                        date described in 
                                        subsection (b) of 
                                        section 8 of the 
                                        American Indian Probate 
                                        Act of 2004, or on or 
                                        after the date on which 
                                        a copy of the tribal 
                                        rule was delivered to 
                                        the Secretary pursuant 
                                        to item (aa), whichever 
                                        is later; and
                                          (ee) the Secretary 
                                        does not make a 
                                        determination within 90 
                                        days after a copy of 
                                        the tribal rule is 
                                        delivered pursuant to 
                                        item (aa) that the rule 
                                        would be unreasonably 
                                        difficult to administer 
                                        or does not conform 
                                        with the requirements 
                                        in item (bb) or (cc).
                          (v) Rule of construction.--This 
                        subparagraph shall not be construed to 
                        limit a person's right to devise any 
                        trust or restricted interest by way of 
                        a valid will in accordance with 
                        subsection (b).
          (3) Right of representation.--If, under this 
        subsection, all or any part of the estate of a decedent 
        is to pass to children of a deceased child by right of 
        representation, that part is to be divided into as many 
        equal shares as there are living children of the 
        decedent and pre-deceased children who left issue who 
        survive the decedent. Each living child of the 
        decedent, if any, shall receive 1 share, and the share 
        of each pre-deceased child shall be divided equally 
        among the pre-deceased child's children.
          (4) Special rule relating to survival.--In the case 
        of intestate succession under this subsection, if an 
        individual fails to survive the decedent by at least 
        120 hours, as established by clear and convincing 
        evidence--
                  (A) the individual shall be deemed to have 
                predeceased the decedent for the purpose of 
                intestate succession; and
                  (B) the heirs of the decedent shall be 
                determined in accordance with this section.
          (5) Status of inherited interests.--Except as 
        provided in paragraphs (2) (A) and (D) regarding the 
        life estate of a surviving spouse, a trust or 
        restricted interest in land or trust personalty that 
        descends under the provisions of this subsection shall 
        vest in the heir in the same trust or restricted status 
        as such interest was held immediately prior to the 
        decedent's death.
  (b) Testamentary Disposition.--
          (1) General devise of an interest in trust or 
        restricted land.--
                  (A) In general.--Subject to any applicable 
                Federal law relating to the devise or descent 
                of trust or restricted land, or a tribal 
                probate code approved by the Secretary in 
                accordance with section 206, the owner of a 
                trust or restricted interest in land may devise 
                such interest to--
                          (i) any lineal descendant of the 
                        testator;
                          (ii) any person who owns a 
                        preexisting undivided trust or 
                        restricted interest in the same parcel 
                        of land;
                          (iii) the Indian tribe with 
                        jurisdiction over the interest in land; 
                        or
                          (iv) any Indian;
                in trust or restricted status.
                  (B) Rules of interpretation.--Any devise of a 
                trust or restricted interest in land pursuant 
                to subparagraph (A) to an Indian or the Indian 
                tribe with jurisdiction over the interest shall 
                be deemed to be a devise of the interest in 
                trust or restricted status. Any devise of a 
                trust or restricted interest in land to a 
                person who is only eligible to be a devisee 
                under clause (i) or (ii) of subparagraph (A) 
                shall be presumed to be a devise of the 
                interest in trust or restricted status unless 
                language in such devise clearly evidences an 
                intent on the part of the testator that the 
                interest is to pass as a life estate or fee 
                interest in accordance with paragraph (2)(A).
          (2) Devise of trust or restricted land as a life 
        estate or in fee.--
                  (A) In general.--Except as provided under any 
                applicable Federal law, any trust or restricted 
                interest in land that is not devised in 
                accordance with paragraph (1)(A) may be devised 
                only--
                          (i) as a life estate to any person, 
                        with the remainder being devised only 
                        in accordance with subparagraph (B) or 
                        paragraph (1); or
                          (ii) except as provided in 
                        subparagraph (B), as a fee interest 
                        without Federal restrictions against 
                        alienation to any person who is not 
                        eligible to be a devisee under clause 
                        (iv) of paragraph (1)(A).
                  (B) Indian reorganization act lands.--Any 
                interest in trust or restricted land that is 
                subject to section 4 of the Act of June 18, 
                1934 (25 U.S.C. 464), may be devised only in 
                accordance with--
                          (i) that section;
                          (ii) subparagraph (A)(i); or
                          (iii) paragraph (1)(A);
                provided that nothing in this section or in 
                section 4 of the Act of June 18, 1934 (25 
                U.S.C. 464), shall be construed to authorize 
                the devise of any interest in trust or 
                restricted land that is subject to section 4 of 
                that Act to any person as a fee interest under 
                subparagraph (A)(ii).
          (3) General devise of an interest in trust 
        personalty.--
                  (A) Trust personality defined.--The term 
                ``trust personalty'' as used in this section 
                includes all funds and securities of any kind 
                which are held in trust in an individual Indian 
                money account or otherwise supervised by the 
                Secretary.
                  (B) In general.--Subject to any applicable 
                Federal law relating to the devise or descent 
                of such trust personalty, or a tribal probate 
                code approved by the Secretary in accordance 
                with section 206, the owner of an interest in 
                trust personalty may devise such an interest to 
                any person or entity.
                  (C) Maintenance as trust personalty.--In the 
                case of a devise of an interest in trust 
                personalty to a person or Indian tribe eligible 
                to be a devisee under paragraph (1)(A), the 
                Secretary shall maintain and continue to manage 
                such interests as trust personalty.
                  (D) Direct disbursement and distribution.--In 
                the case of a devise of an interest in trust 
                personalty to a person or Indian tribe not 
                eligible to be a devisee under paragraph 
                (1)(A), the Secretary shall directly disburse 
                and distribute such personalty to the devisee.
          (4) Invalid devises and wills.--
                  (A) Land.--Any trust or restricted interest 
                in land that is not devised in accordance with 
                paragraph (1) or (2) or that is not disposed of 
                by a valid will shall descend in accordance 
                with the applicable law of intestate succession 
                as provided for in subsection (a).
                  (B) Personalty.--Any trust personalty that is 
                not disposed of by a valid will shall descend 
                in accordance with the applicable law of 
                intestate succession as provided for in 
                subsection (a).
  (c) Joint Tenancy; Right of Survivorship.--
          [(1) Testate.--If a testator devises interests in the 
        same parcel of trust or restricted lands to more than 1 
        person, in the absence of express language in the 
        devise to the contrary, the devise shall be presumed to 
        create joint tenancy with the right of survivorship in 
        the land involved.
          [(2) Intestate.--
                  [(A) In general.--Any interest in trust or 
                restricted land that--
                          [(i) passes by intestate succession 
                        to more than 1 person, including a 
                        remainder interest under subsection (a) 
                        or (b) of section 207; and
                          [(ii) that constitutes 5 percent or 
                        more of the undivided interest in a 
                        parcel of trust or restricted land;
                shall be held as tenancy in common.
                  [(B) Limited interest.--Any interest in trust 
                or restricted land that--
                          [(i) passes by intestate succession 
                        to more than 1 person, including a 
                        remainder interest under subsection (a) 
                        or (b) of section 207; and
                          [(ii) that constitutes less than 5 
                        percent of the undivided interest in a 
                        parcel of trust or restricted land;
                shall be held by such heirs with the right of 
                survivorship.
          [(3) Effective date.--
                  [(A) In general.--This subsection (other than 
                subparagraph (B)) shall become effective on the 
                later of--
                          [(i) the date referred to in 
                        subsection (g)(5); or
                          [(ii) the date that is six months 
                        after the date on which the Secretary 
                        makes the certification required under 
                        subparagraph (B).
                  [(B) Certification.--Upon a determination by 
                the Secretary that the Department of the 
                Interior has the capacity, including policies 
                and procedures, to track and manage interests 
                in trust or restricted land held with the right 
                of survivorship, the Secretary shall certify 
                such determination and publish such 
                certification in the Federal Register.]
          (1) Presumption of joint tenancy.--If a testator 
        devises trust or restricted interests in the same 
        parcel of land to more than 1 person, in the absence of 
        clear and express language in the devise stating that 
        the interest is to pass to the devisees as tenants in 
        common, the devise shall be presumed to create a joint 
        tenancy with the right of survivorship in the interests 
        involved.
          (2) Exception.--Paragraph (1) shall not apply to any 
        devise of an interest in trust or restricted land where 
        the will in which such devise is made was executed 
        prior to the date that is 1 year after the date on 
        which the Secretary publishes the certification 
        required by section 8(a)(4) of the American Indian 
        Probate Reform Act of 2004.

           *       *       *       *       *       *       *

  (f) Estate Planning Assistance.--
          [(1) In general.--The Secretary shall provide estate 
        planning assistance in accordance with this subsection, 
        to the extent amounts are appropriated for such 
        purpose.]
          (1) In general.--
                  (A) The activities conducted under this 
                subsection shall be conducted in accordance 
                with any applicable--
                          (i) tribal probate code; or
                          (ii) tribal land consolidation plan.
                  (B) The Secretary shall provide estate 
                planning assistance in accordance with this 
                subsection, to the extent amounts are 
                appropriated for such purpose.
          (2) Requirements.--The estate planning assistance 
        provided under paragraph (1) shall be designed to--
                  (A) inform, advise, and assist Indian 
                landowners with respect to estate planning in 
                order to facilitate the transfer of trust or 
                restricted lands to a devisee or devisees 
                selected by the landowners; [and]
                  [(B)] (D) assist Indian landowners in 
                accessing information pursuant to section 
                217(e).
                  (B) dramatically increase the use of wills 
                and other methods of devise among Indian 
                landowners;
                  (C) substantially reduce the quantity and 
                complexity of Indian estates that pass 
                intestate through the probate process, while 
                protecting the rights and interests of Indian 
                landowners; and
          [(3) Contracts.--In carrying out this section, the 
        Secretary may enter into contracts with entities that 
        have expertise in Indian estate planning and tribal 
        probate codes.
  [(g) Notification to Indian Tribes and Owners of Trust or 
Restricted Lands.--
          [(1) In general.--Not later than 180 days after the 
        date of enactment of the Indian Land Consolidation Act 
        Amendments of 2000, the Secretary shall notify Indian 
        tribes and owners of trust or restricted lands of the 
        amendments made by the Indian Land Consolidation Act 
        Amendments of 2000.
          [(2) Specifications.--The notice required under 
        paragraph (1) shall be designed to inform Indian owners 
        of trust or restricted land of--
                  [(A) the effect of this Act, with emphasis on 
                the effect of the provisions of this section, 
                on the testate disposition and intestate 
                descent of their interests in trust or 
                restricted land; and
                  [(B) estate planning options available to the 
                owners, including any opportunities for 
                receiving estate planning assistance or advice.
          [(3) Requirements.--The Secretary shall provide the 
        notice required under paragraph (1)--
                  [(A) by direct mail for those Indians with 
                interests in trust and restricted lands for 
                which the Secretary has an address for the 
                interest holder;
                  [(B) through the Federal Register;
                  [(C) through local newspapers in areas with 
                significant Indian populations, reservation 
                newspapers, and newspapers that are directed at 
                an Indian audience; and
                  [(D) through any other means determined 
                appropriate by the Secretary.
          [(4) Certification.--After providing notice under 
        this subsection, the Secretary shall certify that the 
        requirements of this subsection have been met and shall 
        publish notice of such certification in the Federal 
        Register.
          [(5) Effective date.--The provisions of this section 
        shall not apply to the estate of an individual who dies 
        prior to the day that is 365 days after the Secretary 
        makes the certification required under paragraph (4).]
          (3) Probate code development and legal assistance 
        grants.--In carrying out this section, the Secretary 
        may award grants to--
                  (A) Indian tribes, for purposes of tribal 
                probate code development and estate planning 
                services to tribal members;
                  (B) organizations that provide legal 
                assistance services for Indian tribes, Indian 
                organizations, and individual owners of 
                interests in trust or restricted lands that are 
                qualified as nonprofit organizations under 
                section 501(c)(3) of the Internal Revenue Code 
                of 1986 and provide such services pursuant to 
                Federal poverty guidelines, for purposes of 
                providing civil legal assistance to such Indian 
                tribes, individual owners, and Indian 
                organizations for the development of tribal 
                probate codes, for estate planning services or 
                for other purposes consistent with the services 
                they provide to Indians and Indian tribes; and
                  (C) in specific areas and reservations where 
                qualified nonprofit organizations referred to 
                in subparagraph (B) do not provide such legal 
                assistance to Indian tribes, Indian 
                organizations, or individual owners of trust or 
                restricted land, to other providers of such 
                legal assistance;
        that submit an application to the Secretary, in such 
        form and manner as the Secretary may prescribe.
          (4) Authorization for appropriations.--There is 
        authorized to be appropriated such sums as may be 
        necessary to carry out the provisions of paragraph (3).
  (h) Applicable Federal Law.--
          (1) In general.--Any references in subsections (a) 
        and (b) to applicable Federal law include--
                  (A) Public Law 91-627 (84 Stat. 1874);
                  (B) Public Law 92-377 (86 Stat. 530);
                  (C) Public Law 92-443 (86 Stat. 744);
                  (D) Public Law 96-274 (94 Stat. 537); and
                  (E) Public Law 98-513 (98 Stat. 2411).
          (2) No effect on laws.--Nothing in this Act amends or 
        otherwise affects the application of any law described 
        in paragraph (1), or any other Federal law that 
        pertains to--
                  (A) trust or restricted land located on 1 or 
                more specific Indian reservations that are 
                expressly identified in such law; or
                  (B) the allotted lands of 1 or more specific 
                Indian tribes that are expressly identified in 
                such law.
  (i) Rules of Interpretation.--In the absence of a contrary 
intent, and except as otherwise provided under this Act, 
applicable Federal law, or a tribal probate code approved by 
the Secretary pursuant to section 206, wills shall be construed 
as to trust and restricted land and trust personalty in 
accordance with the following rules:
          (1) Construction that will passes all property.--A 
        will shall be construed to apply to all trust and 
        restricted land and trust personalty which the testator 
        owned at his death, including any such land or 
        personalty acquired after the execution of his will.
          (2) Class gifts.--
                  (A) No differentiation between relationship 
                by blood and relationship by affinity.--Terms 
                of relationship that do not differentiate 
                relationships by blood from those by affinity, 
                such as ``uncles'', ``aunts'', ``nieces'', or 
                ``nephews'', are construed to exclude relatives 
                by affinity. Terms of relationship that do not 
                differentiate relationships by the half blood 
                from those by the whole blood, such as 
                ``brothers'', ``sisters'', ``nieces'', or 
                ``nephews'', are construed to include both 
                types of relationships.
                  (B) Meaning of ``heirs'' and ``next of kin'', 
                etc.; time of ascertaining class.--A devise of 
                trust or restricted interest in land or an 
                interest in trust personalty to the testator's 
                or another designated person's ``heirs'', 
                ``next of kin'', ``relatives'', or ``family'' 
                shall mean those persons, including the spouse, 
                who would be entitled to take under the 
                provisions of this Act for nontestamentary 
                disposition. The class is to be ascertained as 
                of the date of the testator's death.
                  (C) Time for ascertaining class.--In 
                construing a devise to a class other than a 
                class described in subparagraph (B), the class 
                shall be ascertained as of the time the devise 
                is to take effect in enjoyment. The surviving 
                issue of any member of the class who is then 
                dead shall take by right of representation the 
                share which their deceased ancestor would have 
                taken.
          (3) Meaning of ``die without issue'' and similar 
        phrases.--In any devise under this chapter, the words 
        ``die without issue'', ``die without leaving issue'', 
        ``have no issue'', or words of a similar import shall 
        be construed to mean that an individual had no lineal 
        descendants in his lifetime or at his death, and not 
        that there will be no lineal descendants at some future 
        time.
          (4) Persons born out of wedlock.--In construing 
        provisions of this chapter relating to lapsed and void 
        devises, and in construing a devise to a person or 
        persons described by relationship to the testator or to 
        another, a person born out of wedlock shall be 
        considered the child of the natural mother and also of 
        the natural father.
          (5) Lapsed devises.--Subject to the provisions of 
        subsection (b), where the testator devises or bequeaths 
        a trust or restricted interest in land or trust 
        personalty to the testator's grandparents or to the 
        lineal descendent of a grandparent, and the devisee or 
        legatee dies before the testator leaving lineal 
        descendents, such descendents shall take the interest 
        so devised or bequeathed per stirpes.
          (6) Void devises.--Except as provided in paragraph 
        (5), and if the disposition shall not be otherwise 
        expressly provided for by a tribal probate code 
        approved under section 206 (25 U.S.C. 2205), if a 
        devise other than a residuary devise of a trust or 
        restricted interest in land or trust personalty fails 
        for any reason, such interest shall become part of the 
        residue and pass, subject to the provisions of 
        subsection (b), to the other residuary devisees, if 
        any, in proportion to their respective shares or 
        interests in the residue.
          (7) Family cemetery plot.--If a family cemetery plot 
        owned by the testator at his decease is not mentioned 
        in the decedent's will, the ownership of the plot shall 
        descend to his heirs as if he had died intestate.
  (j) Heirship by Killing.--
          (1) Heir by killing defined.--As used in this 
        subsection, ``heir by killing'' means any person who 
        knowingly participates, either as a principal or as an 
        accessory before the fact, in the willful and unlawful 
        killing of the decedent.
          (2) No acquisition of property by killing.--Subject 
        to any applicable Federal law relating to the devise or 
        descent of trust or restricted land, no heir by killing 
        shall in any way acquire any trust or restricted 
        interests in land or interests in trust personalty as 
        the result of the death of the decedent, but such 
        property shall pass in accordance with this subsection.
          (3) Descent, distribution, and right of 
        survivorship.--The heir by killing shall be deemed to 
        have predeceased the decedent as to decedent's trust or 
        restricted interests in land or trust personalty which 
        would have passed from the decedent or his estate to 
        such heir--
                  (A) under intestate succession under this 
                section;
                  (B) under a tribal probate code, unless 
                otherwise provided for;
                  (C) as the surviving spouse;
                  (D) by devise;
                  (E) as a reversion or a vested remainder;
                  (F) as a survivorship interest; and
                  (G) as a contingent remainder or executory or 
                other future interest.
          (4) Joint tenants, joint owners, and joint 
        obligees.--
                  (A) Any trust or restricted land or trust 
                personalty held by only the heir by killing and 
                the decedent as joint tenants, joint owners, or 
                joint obligees shall pass upon the death of the 
                decedent to his or her estate, as if the heir 
                by killing had predeceased the decedent.
                  (B) As to trust or restricted land or trust 
                personalty held jointly by 3 or more persons, 
                including both the heir by killing and the 
                decedent, any income which would have accrued 
                to the heir by killing as a result of the death 
                of the decedent shall pass to the estate of the 
                decedent as if the heir by killing had 
                predeceased the decedent and any surviving 
                joint tenants.
                  (C) Notwithstanding any other provision of 
                this subsection, the decedent's trust or 
                restricted interest land or trust personalty 
                that is held in a joint tenancy with the right 
                of survivorship shall be severed from the joint 
                tenancy as though the property held in the 
                joint tenancy were to be severed and 
                distributed equally among the joint tenants and 
                the decedent's interest shall pass to his 
                estate; the remainder of the interests shall 
                remain in joint tenancy with right of 
                survivorship among the surviving joint tenants.
          (5) Life estate for the life of another.--If the 
        estate is held by a third person whose possession 
        expires upon the death of the decedent, it shall remain 
        in such person's hands for the period of time following 
        the decedent's death equal to the life expectancy of 
        the decedent but for the killing.
          (6) Preadjudication rule.--
                  (A) In general.--If a person has been 
                charged, whether by indictment, information, or 
                otherwise by the United States, a tribe, or any 
                State, with voluntary manslaughter or homicide 
                in connection with a decedent's death, then any 
                and all trust or restricted land or trust 
                personalty that would otherwise pass to that 
                person from the decedent's estate shall not 
                pass or be distributed by the Secretary until 
                the charges have been resolved in accordance 
                with the provisions of this paragraph.
                  (B) Dismissal or withdrawal.--Upon dismissal 
                or withdrawal of the charge, or upon a verdict 
                of not guilty, such land and personalty shall 
                pass as if no charge had been filed or made.
                  (C) Conviction.--Upon conviction of such 
                person, and the exhaustion of all appeals, if 
                any, the trust and restricted land and trust 
                personalty in the estate shall pass in 
                accordance with this subsection.
          (7) Broad construction; policy of subsection.--This 
        subsection shall not be considered penal in nature, but 
        shall be construed broadly in order to effect the 
        policy that no person shall be allowed to profit by his 
        own wrong, wherever committed.
  (k) General Rules Governing Probate.--
          (1) Scope.--Except as provided under applicable 
        Federal law or a tribal probate code approved under 
        section 206, the provisions of this subsection shall 
        govern the probate of estates containing trust and 
        restricted interests in land or trust personalty.
          (2) Pretermitted spouses and children.--
                  (A) Spouses.--
                          (i) In general.--Except as provided 
                        in clause (ii), if the surviving spouse 
                        of a testator married the testator 
                        after the testator executed the will of 
                        the testator, the surviving spouse 
                        shall receive the intestate share in 
                        the decedent's trust or restricted land 
                        and trust personalty that the spouse 
                        would have received if the testator had 
                        died intestate.
                          (ii) Exception.--Clause (i) shall not 
                        apply to a trust or restricted interest 
                        land where--
                                  (I) the will of a testator is 
                                executed before the date of 
                                enactment of this subparagraph;
                                  (II)(aa) the spouse of a 
                                testator is a non-Indian; and
                                  (bb) the testator devised the 
                                interests in trust or 
                                restricted land of the testator 
                                to 1 or more Indians;
                                  (III) it appears, based on an 
                                examination of the will or 
                                other evidence, that the will 
                                was made in contemplation of 
                                the marriage of the testator to 
                                the surviving spouse;
                                  (IV) the will expresses the 
                                intention that the will is to 
                                be effective notwithstanding 
                                any subsequent marriage; or
                                  (V)(aa) the testator provided 
                                for the spouse by a transfer of 
                                funds or property outside the 
                                will; and
                                  (bb) an intent that the 
                                transfer be in lieu of a 
                                testamentary provision is 
                                demonstrated by statements of 
                                the testator or through a 
                                reasonable inference based on 
                                the amount of the transfer or 
                                other evidence.
                          (iii) Spouses married at the time of 
                        the will.--Should the surviving spouse 
                        of the testator be omitted from the 
                        will of the testator, the surviving 
                        spouse shall be treated, for purposes 
                        of trust or restricted land or trust 
                        personalty in the testator's estate, in 
                        accordance with the provisions of 
                        section 207(a)(2)(A), as though there 
                        was no will but only if--
                                  (I) the testator and 
                                surviving spouse were 
                                continuously married without 
                                legal separation for the 5-year 
                                period preceding the decedent's 
                                death;
                                  (II) the testator and 
                                surviving spouse have a 
                                surviving child who is the 
                                child of the testator;
                                  (III) the surviving spouse 
                                has made substantial payments 
                                toward the purchase of, or 
                                improvements to, the trust or 
                                restricted land in such estate; 
                                or
                                  (IV) the surviving spouse is 
                                under a binding obligation to 
                                continue making loan payments 
                                for the trust or restricted 
                                land for a substantial period 
                                of time;
                        except that, if there is evidence that 
                        the testator adequately provided for 
                        the surviving spouse and any minor 
                        children by a transfer of funds or 
                        property outside of the will, this 
                        clause shall not apply.
                  (B) Children.--
                          (i) In general.--If a testator 
                        executed the will of the testator 
                        before the birth or adoption of 1 or 
                        more children of the testator, and the 
                        omission of the children from the will 
                        is a product of inadvertence rather 
                        than an intentional omission, the 
                        children shall share in the trust or 
                        restricted interests in land and trust 
                        personalty as if the decedent had died 
                        intestate.
                          (ii) Adopted heirs.--Any person 
                        recognized as an heir by virtue of 
                        adoption under the Act of July 8, 1940 
                        (25 U.S.C. 372a), shall be treated as 
                        the child of a decedent under this 
                        subsection.
                          (iii) Adopted-out children.--
                                  (I) In general.--For purposes 
                                of this Act, an adopted person 
                                shall not be considered the 
                                child or issue of his natural 
                                parents, except in distributing 
                                the estate of a natural kin, 
                                other than the natural parent, 
                                who has maintained a family 
                                relationship with the adopted 
                                person. If a natural parent 
                                shall have married the adopting 
                                parent, the adopted person for 
                                purposes of inheritance by, 
                                from and through him shall also 
                                be considered the issue of such 
                                natural parent.
                                  (II) Eligible heir pursuant 
                                to other Federal law or tribal 
                                law.--Notwithstanding the 
                                provisions of subparagraph 
                                (B)(iii)(I), other Federal laws 
                                and laws of the Indian tribe 
                                with jurisdiction over the 
                                trust or restricted interest in 
                                land may otherwise define the 
                                inheritance rights of adopted-
                                out children.
          (3) Divorce.--
                  (A) Surviving spouse.--
                          (i) In general.--An individual who is 
                        divorced from a decedent, or whose 
                        marriage to the decedent has been 
                        annulled, shall not be considered to be 
                        a surviving spouse unless, by virtue of 
                        a subsequent marriage, the individual 
                        is married to the decedent at the time 
                        of death of the decedent.
                          (ii) Separation.--A decree of 
                        separation that does not dissolve a 
                        marriage, and terminate the status of 
                        husband and wife, shall not be 
                        considered a divorce for the purpose of 
                        this subsection.
                          (iii) No effect on adjudications.--
                        Nothing in clause (i) shall prevent the 
                        Secretary from giving effect to a 
                        property right settlement relating to a 
                        trust or restricted interest in land or 
                        an interest in trust personalty if 1 of 
                        the parties to the settlement dies 
                        before the issuance of a final decree 
                        dissolving the marriage of the parties 
                        to the property settlement.
                  (B) Effect of subsequent divorce on a will or 
                devise.--
                          (i) In general.--If, after executing 
                        a will, a testator is divorced or the 
                        marriage of the testator is annulled, 
                        as of the effective date of the divorce 
                        or annulment, any disposition of trust 
                        or restricted interests in land or of 
                        trust personalty made by the will to 
                        the former spouse of the testator shall 
                        be considered to be revoked unless the 
                        will expressly provides otherwise.
                          (ii) Property.--Property that is 
                        prevented from passing to a former 
                        spouse of a decedent under clause (i) 
                        shall pass as if the former spouse 
                        failed to survive the decedent.
                          (iii) Provisions of wills.--Any 
                        provision of a will that is considered 
                        to be revoked solely by operation of 
                        this subparagraph shall be revived by 
                        the remarriage of a testator to the 
                        former spouse of the testator.
          (4) After-born heirs.--A child in gestation at the 
        time of decedent's death will be treated as having 
        survived the decedent if the child lives at least 120 
        hours after its birth.
          (5) Advancements of trust personalty during lifetime; 
        effect on distribution of estate.--
                  (A) The trust personalty of a decedent who 
                dies intestate as to all or a portion of his or 
                her estate, given during the decedent's 
                lifetime to a person eligible to be an heir of 
                the decedent under subsection (b)(2)(B), shall 
                be treated as an advancement against the heir's 
                inheritance, but only if the decedent declared 
                in a contemporaneous writing, or the heir 
                acknowledged in writing, that the gift is an 
                advancement or is to be taken into account in 
                computing the division and distribution of the 
                decedent's intestate estate.
                  (B) For the purposes of this section, trust 
                personalty advanced during the decedent's 
                lifetime is valued as of the time the heir came 
                into possession or enjoyment of the property or 
                as of the time of the decedent's death, 
                whichever occurs first.
                  (C) If the recipient of the trust personalty 
                predeceases the decedent, the property shall 
                not be treated as an advancement or taken into 
                account in computing the division and 
                distribution of the decedent's intestate estate 
                unless the decedent's contemporaneous writing 
                provides otherwise.
          (6) Heirs related to decedent through 2 lines; single 
        share.--A person who is related to the decedent through 
        2 lines of relationship is entitled to only a single 
        share of the trust or restricted land or trust 
        personalty in the decedent's estate based on the 
        relationship that would entitle such person to the 
        larger share.
          (7) Notice.--
                  (A) In general.--To the maximum extent 
                practicable, the Secretary shall notify each 
                owner of trust and restricted land of the 
                provisions of this Act.
                  (B) Combined notices.--The notice under 
                subparagraph (A) may, at the discretion of the 
                Secretary, be provided with the notice required 
                under subsection (a) of section 8 of the 
                American Indian Probate Reform Act of 2004.
          (8) Renunciation or disclaimer of interests.--
                  (A) In general.--Any person 18 years of age 
                or older may renounce or disclaim an 
                inheritance of a trust or restricted interest 
                in land or in trust personalty through 
                intestate succession or devise, either in full 
                or subject to the reservation of a life estate 
                (where the interest is an interest in land), in 
                accordance with subparagraph (B), by filing a 
                signed and acknowledged declaration with the 
                probate decisionmaker prior to entry of a final 
                probate order. No interest so renounced or 
                disclaimed shall be considered to have vested 
                in the renouncing or disclaiming heir or 
                devisee, and the renunciation or disclaimer 
                shall not be considered to be a transfer or 
                gift of the renounced or disclaimed interest.
                  (B) Eligible recipients of renounced or 
                disclaimed interests; notice to recipients.--
                          (i) Interests in land.--A trust or 
                        restricted interest in land may be 
                        renounced or disclaimed only in favor 
                        of--
                                  (I) an eligible heir;
                                  (II) any person who would 
                                have been eligible to be a 
                                devisee of the interest in 
                                question pursuant to subsection 
                                (b)(1)(A) (but only in cases 
                                where the renouncing person is 
                                a devisee of the interest under 
                                a valid will); or
                                  (III) the Indian tribe with 
                                jurisdiction over the interest 
                                in question;
                        and the interest so renounced shall 
                        pass to its recipient in trust or 
                        restricted status.
                          (ii) Trust personalty.--An interest 
                        in trust personalty may be renounced or 
                        disclaimed in favor of any person who 
                        would be eligible to be a devisee of 
                        such an interest under subsection 
                        (b)(3) and shall pass to the recipient 
                        in accordance with the provisions of 
                        that subsection.
                          (iii) Unauthorized renunciations and 
                        disclaimers.--Unless renounced or 
                        disclaimed in favor of a person or 
                        Indian tribe eligible to receive the 
                        interest in accordance with the 
                        provisions of this subparagraph, a 
                        renounced or disclaimed interest shall 
                        pass as if the renunciation or 
                        disclaimer had not been made.
                  (C) Acceptance of interest.--A renunciation 
                or disclaimer of an interest filed in 
                accordance with this paragraph shall be 
                considered accepted when implemented in a final 
                order by a decisionmaker, and shall thereafter 
                be irrevocable. No renunciation or disclaimer 
                of an interest shall be included in such order 
                unless the recipient of the interest has been 
                given notice of the renunciation or disclaimer 
                and has not refused to accept the interest. All 
                disclaimers and renunciations filed and 
                implemented in probate orders made effective 
                prior to the date of enactment of the American 
                Indian Probate Reform Act of 2004 are hereby 
                ratified.
                  (D) Rule of construction.--Nothing in this 
                paragraph shall be construed to allow the 
                renunciation of an interest that is subject to 
                the provisions of section 207(a)(2)(D) (25 
                U.S.C. 2206(a)(2)(D)) in favor of more than 1 
                person.
          (9) Consolidation agreements.--
                  (A) In general.--During the pendency of 
                probate, the decisionmaker is authorized to 
                approve written consolidation agreements 
                effecting exchanges or gifts voluntarily 
                entered into between the decedent's eligible 
                heirs or devisees, to consolidate interests in 
                any tract of land included in the decedent's 
                trust inventory. Such agreements may provide 
                for the conveyance of interests already owned 
                by such heirs or devisees in such tracts, 
                without having to comply with the Secretary's 
                rules and requirements otherwise applicable to 
                conveyances by deed of trust or restricted 
                interests in land.
                  (B) Effective.--An agreement approved under 
                subparagraph (A) shall be considered final when 
                implemented in an order by a decisionmaker. The 
                final probate order shall direct any changes 
                necessary to the Secretary's land records, to 
                reflect and implement the terms of the approved 
                agreement.
                  (C) Effect on purchase option at probate.--
                Any interest in trust or restricted land that 
                is subject to a consolidation agreement under 
                this paragraph or section 207(e) (25 U.S.C. 
                2206(e)) shall not be available for purchase 
                under section 207(p) (25 U.S.C. 2206(p)) unless 
                the decisionmaker determines that the agreement 
                should not be approved.
  (l) Notification to Landowners.--After receiving written 
request by any owner of a trust or restricted interest in land, 
the Secretary shall provide to such landowner the following 
information with respect to each tract of trust or restricted 
land in which the landowner has an interest:
          (1) The location of the tract of land involved.
          (2) The identity of each other co-owner of interests 
        in the parcel of land.
          (3) The percentage of ownership of each owner of an 
        interest in the tract.
  (m) Pilot Project for the Management of Trust Assets of 
Indian Families and Relatives.--
          (1) Development pilot project.--The Secretary shall 
        consult with tribes, individual landowner 
        organizations, Indian advocacy organizations, and other 
        interested parties to--
                  (A) develop a pilot project for the creation 
                of legal entities such as private or family 
                trusts, partnerships corporations, or other 
                organizations to improve, facilitate, and 
                assist in the efficient management of interests 
                in trust or restricted lands or funds owned by 
                Indian family members and relatives; and
                  (B) develop proposed rules, regulations, and 
                guidelines to implement the pilot project, 
                including--
                          (i) the criteria for establishing 
                        such legal entities;
                          (ii) reporting and other requirements 
                        that the Secretary determines to be 
                        appropriate for administering such 
                        entities; and
                          (iii) provisions for suspending or 
                        revoking the authority of an entity to 
                        engage in activities relating to the 
                        management of trust or restricted 
                        assets under the pilot project in order 
                        to protect the interests of the 
                        beneficial owners of such assets.
          (2) Primary purposes; limitation; approval of 
        transactions; payments by secretary.--
                  (A) Purposes.--The primary purpose of any 
                entity organized under the pilot project shall 
                be to improve, facilitate, and assist in the 
                management of interests in trust or restricted 
                land, held by 1 or more persons, in furtherance 
                of the purposes of this Act.
                  (B) Limitation.--The organization or 
                activities of any entity under the pilot 
                project shall not be construed to impair, 
                impede, replace, abrogate, or modify in any 
                respect the trust duties or responsibilities of 
                the Secretary, nor shall anything in this 
                subsection or in any rules, regulations, or 
                guidelines developed under this subsection 
                enable any private or family trustee of trust 
                or restricted interests in land to exercise any 
                powers over such interests greater than that 
                held by the Secretary with respect to such 
                interests.
                  (C) Secretarial approval of transactions.--
                Any transaction involving the lease, use, 
                mortgage or other disposition of trust or 
                restricted land or other trust assets 
                administered by or through an entity under the 
                pilot project shall be subject to approval by 
                the Secretary in accordance with applicable 
                Federal law.
                  (D) Payments.--The Secretary shall have the 
                authority to make payments of income and 
                revenues derived from trust or restricted land 
                or other trust assets administered by or 
                through an entity participating in the pilot 
                project directly to the entity, in accordance 
                with requirements of the regulations adopted 
                pursuant to this subsection.
          (3) Limitations on pilot project.--
                  (A) Number of organizations.--The number of 
                entities established under the pilot project 
                authorized by this subsection shall not exceed 
                30.
                  (B) Regulations required.--No entity shall 
                commence activities under the pilot project 
                authorized by this subsection until the 
                Secretary has adopted final rules and 
                regulations under paragraph (1)(B).
          (4) Report to congress.--Prior to the expiration of 
        the pilot project provided for under this subsection, 
        the Secretary shall submit a report to Congress 
        stating--
                  (A) a description of the Secretary's 
                consultation with Indian tribes, individual 
                landowner associations, Indian advocacy 
                organizations, and other parties consulted with 
                regarding the development of rules and 
                regulations for the creation and management of 
                interests in trust and restricted lands under 
                the pilot project;
                  (B) the feasibility of accurately monitoring 
                the performance of legal entities such as those 
                involved in the pilot project, and the 
                effectiveness of such entities as mechanisms to 
                manage and protect trust assets;
                  (C) the impact that the use of entities such 
                as those in the pilot project may have with 
                respect to the accomplishment of the goals of 
                the Indian Land Consolidation Act (25 U.S.C. 
                2201 et seq.); and
                  (D) any recommendations that the Secretary 
                may have regarding whether to adopt a permanent 
                program as a management and consolidation 
                measure for interests in trust or restricted 
                lands.
  (n) Notice to Heirs.--Prior to holding a hearing to determine 
the heirs to trust or restricted property, or making a decision 
determining such heirs, the Secretary shall seek to provide 
actual written notice of the proceedings to all heirs. Such 
efforts shall include--
          (1) a search of publicly available records and 
        Federal records, including telephone and address 
        directories and including electronic search services or 
        directories;
          (2) an inquiry with family members and co-heirs of 
        the property;
          (3) an inquiry with the tribal government of which 
        the owner is a member, and the tribal government with 
        jurisdiction over the property, if any; and
          (4) if the property is of a value greater than 
        $2,000, engaging the services of an independent firm to 
        conduct a missing persons search.
  (o) Missing Heirs.--
          (1) For purposes of this subsection and subsection 
        (m), an heir may be presumed missing if--
                  (A) such heir's whereabouts remain unknown 60 
                days after completion of notice efforts under 
                subsection (m); and
                  (B) in the proceeding to determine a 
                decedent's heirs, the Secretary finds that the 
                heir has had no contact with other heirs of the 
                decedent, if any, or with the Department 
                relating to trust or restricted land or other 
                trust assets at any time during the 6-year 
                period preceding the hearing to determine 
                heirs.
          (2) Before the date for declaring an heir missing, 
        any person may request an extension of time to locate 
        such heir. The Secretary shall grant a reasonable 
        extension of time for good cause.
          (3) An heir shall be declared missing only after a 
        review of the efforts made in the heirship proceeding 
        and a finding has been made that this subsection has 
        been complied with.
          (4) An heir determined to be missing pursuant to this 
        subsection shall be deemed to have predeceased the 
        decedent for purposes of descent and devise of trust or 
        restricted land and trust personalty within that 
        decedent's estate.
  (p) Purchase Option at Probate.--
          (1) In general.--The trust or restricted interests in 
        a parcel of land in the decedent's estate may be 
        purchased at probate in accordance with the provisions 
        of this subsection.
          (2) Sale of interest at fair market value.--Subject 
        to paragraph (3), the Secretary is authorized to sell 
        trust or restricted interests in land subject to this 
        subsection, including the interest that a surviving 
        spouse would otherwise receive under section 207(a)(2) 
        (A) or (D), at no less than fair market value, as 
        determined in accordance with the provisions of this 
        Act, to any of the following eligible purchasers:
                  (A) Any other eligible heir taking an 
                interest in the same parcel of land by 
                intestate succession or the decedent's other 
                devisees of interests in the same parcel who 
                are eligible to receive a devise under section 
                207(b)(1)(A).
                  (B) All persons who own undivided trust or 
                restricted interests in the same parcel of land 
                involved in the probate proceeding.
                  (C) The Indian tribe with jurisdiction over 
                the interest, or the Secretary on behalf of 
                such Indian tribe.
          (3) Request to purchase; auction; consent 
        requirements.--No sale of an interest in probate shall 
        occur under this subsection unless--
                  (A) an eligible purchaser described in 
                paragraph (2) submits a written request to 
                purchase prior to the distribution of the 
                interest to heirs or devisees of the decedent 
                and in accordance with any regulations of the 
                Secretary; and
                  (B) except as provided in paragraph (5), the 
                heirs or devisees of such interest, and the 
                decedent's surviving spouse, if any, receiving 
                a life estate under section 207(a)(2) (A) or 
                (D) consent to the sale.
        If the Secretary receives more than 1 request to 
        purchase the same interest, the Secretary shall sell 
        the interest by public auction or sealed bid (as 
        determined by the Secretary) at not less than the 
        appraised fair market value to the eligible purchaser 
        submitting the highest bid.
          (4) Appraisal and notice.--Prior to the sale of an 
        interest pursuant to this subsection, the Secretary 
        shall--
                  (A) appraise the interest at its fair market 
                value in accordance with this Act;
                  (B) provide eligible heirs, other devisees, 
                and the Indian tribe with jurisdiction over the 
                interest with written notice, sent by first 
                class mail, that the interest is available for 
                purchase in accordance with this subsection; 
                and
                  (C) if the Secretary receives more than 1 
                request to purchase the interest by a person 
                described in subparagraph (B), provide notice 
                of the manner (auction or sealed bid), time and 
                place of the sale, a description, and the 
                appraised fair market value, of the interest to 
                be sold--
                          (i) to the heirs or other devisees 
                        and the Indian tribe with jurisdiction 
                        over the interest, by first class mail; 
                        and
                          (ii) to all other eligible 
                        purchasers, by posting written notice 
                        in at least 5 conspicuous places in the 
                        vicinity of the place of hearing.
          (5) Small undivided interests in indian lands.--
                  (A) In general.--Subject to subparagraph (B), 
                the consent of a person who is an heir 
                otherwise required under paragraph (3)(B) shall 
                not be required for the auction and sale of an 
                interest at probate under this subsection if--
                          (i) the interest is passing by 
                        intestate succession; and
                          (ii) prior to the auction the 
                        Secretary determines in the probate 
                        proceeding that the interest passing to 
                        such heir represents less than 5 
                        percent of the entire undivided 
                        ownership of the parcel of land as 
                        evidenced by the Secretary's records as 
                        of the time the determination is made.
                  (B) Exception.--Notwithstanding subparagraph 
                (A), the consent of such heir shall be required 
                for the sale at probate of the heir's interest 
                if, at the time of the decedent's death, the 
                heir was residing on the parcel of land of 
                which the interest to be sold was a part.
          (6) Distribution of proceeds.--Proceeds from the sale 
        of interests under this subsection shall be distributed 
        to the heirs, devisees, or spouse whose interest was 
        sold in accordance with the values of their respective 
        interests. The proceeds attributable to an heir or 
        devisee shall be held in an account as trust personalty 
        if the interest sold would have otherwise passed to the 
        heir or devisee in trust or restricted status.

           *       *       *       *       *       *       *


[SEC. 213. PILOT PROGRAM FOR THE ACQUISITION OF FRACTIONAL INTERESTS.]

SEC. 2212. FRACTIONAL INTEREST ACQUISITION PROGRAM.

  (a) Acquisition by Secretary.--
          (1) In general.--The Secretary may acquire, at the 
        discretion of the Secretary and with the consent of the 
        owner, or from an heir during probate in accordance 
        with section 207(p) (25 U.S.C. 2206(p)) and at fair 
        market value, any fractional interest in trust or 
        restricted lands.
          [(2) Authority of secretary.--
                  [(A) In general.--The Secretary shall have 
                the authority to acquire interests in trust or 
                restricted lands under this section during the 
                3-year period beginning on the date of 
                certification that is referred to in section 
                207(g)(5).
                  [(B) Required report.--Prior to expiration of 
                the authority provided for in subparagraph (A), 
                the Secretary shall submit]
          (2) Authority of secretary.--The Secretary shall 
        submit the report required under section 218 concerning 
        [whether the program to acquire fractional interests 
        should be extended or altered to make resources] how 
        the fractional interest acquisition program should be 
        enhanced to increase the resources made available to 
        Indian tribes and individual Indian landowners.

           *       *       *       *       *       *       *

  (b) Requirements.--In implementing subsection (a), the 
Secretary--
          (1) * * *

           *       *       *       *       *       *       *

          [(4) shall minimize the administrative costs 
        associated with the land acquisition program.]
          (4) shall minimize the administrative costs 
        associated with the land acquisition program through 
        the use of policies and procedures designed to 
        accommodate the voluntary sale of interests under this 
        section, notwithstanding the existence of any otherwise 
        applicable policy, procedure, or regulation, through 
        the elimination of duplicate--
                  (A) conveyance documents;
                  (B) administrative proceedings; and
                  (C) transactions.
  (c) Sale of Interest to Indian Landowners.--
          (1) Conveyance at request.--
                  (A) In general.--At the request of any Indian 
                who owns [at least 5 percent of the] an 
                undivided interest in a parcel of trust or 
                restricted land, the Secretary shall convey an 
                interest in such parcel acquired under this 
                section to the Indian [landowner upon payment 
                by the Indian landowner of the amount paid for 
                the interest by the Secretary.] landowner--
                          (i) on payment by the Indian 
                        landowner of the amount paid for the 
                        interest by the Secretary; or
                          (ii) if--
                                  (I) the Indian referred to in 
                                this subparagraph provides 
                                assurances that the purchase 
                                price will be paid by pledging 
                                revenue from any source, 
                                including trust resources; and
                                  (II) the Secretary determines 
                                that the purchase price will be 
                                paid in a timely and efficient 
                                manner.
                  (B) Limitation.--With respect to a conveyance 
                under this subsection, the Secretary shall not 
                approve an application to terminate the trust 
                status or remove the restrictions of such an 
                interest unless the interest is subject to a 
                foreclosure of a mortgage in accordance with 
                the Act of March 29, 1956 (25 U.S.C. 483a).

           *       *       *       *       *       *       *

          (3) Limitation.--If an Indian tribe that has 
        jurisdiction over a parcel of trust or restricted land 
        owns [10 percent or more of the undivided interests] an 
        undivided interest in a parcel of such land, such 
        interest may only be acquired under paragraph (1) with 
        the consent of such Indian tribe.
  (d) Authorization of Appropriations.--There is authorized to 
be appropriated to carry out this section $75,000,000 for 
fiscal year 2005, $95,000,000 for fiscal year 2006, and 
$145,000,000 for each of fiscal years 2007 through 2010.

SEC. 214. ADMINISTRATION OF ACQUIRED FRACTIONAL INTERESTS, DISPOSITION 
                    OF PROCEEDS.

  (a) * * *
  [(b) Conditions.--
          [(1) In general.--The conditions described in this 
        paragraph are as follows:
                  [(A) Until the purchase price paid by the 
                Secretary for an interest referred to in 
                subsection (a) has been recovered, or until the 
                Secretary makes any of the findings under 
                paragraph (2)(A), any lease, resource sale 
                contract, right-of-way, or other document 
                evidencing a transaction affecting the interest 
                shall contain a clause providing that all 
                revenue derived from the interest shall be paid 
                to the Secretary.
                  [(B) Subject to subparagraph (C), the 
                Secretary shall deposit any revenue derived 
                under subparagraph (A) into the Acquisition 
                Fund created under section 216.
                  [(C) The Secretary shall deposit any revenue 
                that is paid under subparagraph (A) that is in 
                excess of the purchase price of the fractional 
                interest involved to the credit of the Indian 
                tribe that receives the fractional interest 
                under section 213 and the tribe shall have 
                access to such funds in the same manner as 
                other funds paid to the Secretary for the use 
                of lands held in trust for the tribe.
                  [(D) Notwithstanding any other provision of 
                law, including section 16 of the Act of June 
                18, 1934 (commonly referred to as the ``Indian 
                Reorganization Act'') (48 Stat. 987, chapter 
                576; 25 U.S.C. 476), with respect to any 
                interest acquired by the Secretary under 
                section 213, the Secretary may approve a 
                transaction covered under this section on 
                behalf of a tribe until--
                          [(i) the Secretary makes any of the 
                        findings under paragraph (2)(A); or
                          [(ii) an amount equal to the purchase 
                        price of that interest has been paid 
                        into the Acquisition Fund created under 
                        section 216.
          [(2) Exception.--Paragraph (1)(A) shall not apply to 
        any revenue derived from an interest in a parcel of 
        land acquired by the Secretary under section 213 
        after--
                  [(A) the Secretary makes a finding that--
                          [(i) the costs of administering the 
                        interest will equal or exceed the 
                        projected revenues for the parcel 
                        involved;
                          [(ii) in the discretion of the 
                        Secretary, it will take an unreasonable 
                        period of time for the parcel to 
                        generate revenue that equals the 
                        purchase price paid for the interest; 
                        or
                          [(iii) a subsequent decrease in the 
                        value of land or commodities associated 
                        with the land make it likely that the 
                        interest will be unable to generate 
                        revenue that equals the purchase price 
                        paid for the interest in a reasonable 
                        time; or
                  [(B) an amount equal to the purchase price of 
                that interest in land has been paid into the 
                Acquisition Fund created under section 216.]
  (b) Application of Revenue From Acquired Interests to Land 
Consolidation Program.--
          (1) In general.--The Secretary shall have a lien on 
        any revenue accruing to an interest described in 
        subsection (a) until the Secretary provides for the 
        removal of the lien under paragraph (3), (4), or (5).
          (2) Requirements.--
                  (A) In general.--Until the Secretary removes 
                a lien from an interest in land under paragraph 
                (1)--
                          (i) any lease, resource sale 
                        contract, right-of-way, or other 
                        document evidencing a transaction 
                        affecting the interest shall contain a 
                        clause providing that all revenue 
                        derived from the interest shall be paid 
                        to the Secretary; and
                          (ii) any revenue derived from any 
                        interest acquired by the Secretary in 
                        accordance with section 213 shall be 
                        deposited in the fund created under 
                        section 216.
                  (B) Approval of transactions.--
                Notwithstanding section 16 of the Act of June 
                18, 1934 (commonly known as the ``Indian 
                Reorganization Act'') (25 U.S.C. 476), or any 
                other provision of law, until the Secretary 
                removes a lien from an interest in land under 
                paragraph (1), the Secretary may approve a 
                transaction covered under this section on 
                behalf of an Indian tribe.
          (3) Removal of liens after findings.--The Secretary 
        may remove a lien referred to in paragraph (1) if the 
        Secretary makes a finding that--
                  (A) the costs of administering the interest 
                from which revenue accrues under the lien will 
                equal or exceed the projected revenues for the 
                parcel of land involved;
                  (B) in the discretion of the Secretary, it 
                will take an unreasonable period of time for 
                the parcel of land to generate revenue that 
                equals the purchase price paid for the 
                interest; or
                  (C) a subsequent decrease in the value of 
                land or commodities associated with the parcel 
                of land make it likely that the interest will 
                be unable to generate revenue that equals the 
                purchase price paid for the interest in a 
                reasonable time.
          (4) Removal of liens upon payment into the 
        acquisition fund.--The Secretary shall remove a lien 
        referred to in paragraph (1) upon payment of an amount 
        equal to the purchase price of that interest in land 
        into the Acquisition Fund created under section 2215 of 
        this title, except where the tribe with jurisdiction 
        over such interest in land authorizes the Secretary to 
        continue the lien in order to generate additional 
        acquisition funds.
          (5) Other removal of liens.--The Secretary may, in 
        consultation with tribal governments and other entities 
        described in section 213(b)(3), periodically remove 
        liens referred to in paragraph (1) from interests in 
        land acquired by the Secretary.

           *       *       *       *       *       *       *


SEC. 216. ACQUISITION FUND.

  (a) In General.--The Secretary shall establish an Acquisition 
Fund to--
          (1) * * *
          [(2) collect all revenues received from the lease, 
        permit, or sale of resources from interests in trust or 
        restricted lands transferred to Indian tribes by the 
        Secretary under section 213 or paid by Indian 
        landowners under section 213(c).]
          (2) collect all revenues received from the lease, 
        permit, or sale of resources from interests acquired 
        under section 213 or paid by Indian landowners under 
        section 213.
  (b) Deposits; Use.--
          (1) In general.--[Subject to paragraph (2), all] All 
        proceeds from leases, permits, or resource sales 
        derived from an interest in trust or restricted lands 
        described in subsection (a)(2) shall--
                  (A) be deposited in the Acquisition Fund; 
                [and]
                  (B) as specified in advance in appropriations 
                Acts, be available for the purpose of acquiring 
                additional fractional interests in trust or 
                restricted lands[.]; and
                  (C) be used to acquire undivided interests on 
                the reservation from which the income was 
                derived.
          [(2) Maximum deposits of proceeds.--With respect to 
        the deposit of proceeds derived from an interest under 
        paragraph (1), the aggregate amount deposited under 
        that paragraph shall not exceed the purchase price of 
        that interest under section 213.]
          (2) Use of funds.--The Secretary may use the revenue 
        deposited in the Acquisition Fund under paragraph (1) 
        to acquire some or all of the undivided interests in 
        any parcels of land in accordance with section 205.

SEC. 217. TRUST AND RESTRICTED LAND TRANSACTIONS.

  (a) * * *
  (b) Sales, Exchanges and Gift Deeds Between Indians and 
Between Indians and Indian Tribes.--
          (1) In general.--
                  (A) * * *
                  [(B) Waiver of requirement.--The requirement 
                for an estimate of value under subparagraph (A) 
                may be waived in writing by an Indian selling, 
                exchanging, or conveying by gift deed for no or 
                nominal consideration an interest in land with 
                an Indian person who is the owner's spouse, 
                brother, sister, lineal ancestor of Indian 
                blood, lineal descendant, or collateral heir.]
                  (B) Waiver of requirement.--The requirement 
                for an estimate of value under subparagraph (A) 
                may be waived in writing by an owner of a trust 
                or restricted interest in land either selling, 
                exchanging, or conveying by gift deed for no or 
                nominal consideration such interest--
                          (i) to an Indian person who is the 
                        owner's spouse, brother, sister, lineal 
                        ancestor, lineal descendant, or 
                        collateral heir; or
                          (ii) to an Indian co-owner or to the 
                        tribe with jurisdiction over the 
                        subject parcel of land, where the 
                        grantor owns a fractional interest that 
                        represents 5 percent or less of the 
                        parcel.

           *       *       *       *       *       *       *

  (e) Land Ownership Information.--[Notwithstanding any other 
provision of law, the names and mailing addresses of the Indian 
owners of trust or restricted lands, and information on the 
location of the parcel and the percentage of undivided interest 
owned by each individual, or of any interest in trust or 
restricted lands, shall, upon written request, be made 
available to--] Notwithstanding any other provision of law, the 
names and mailing addresses of the owners of any interest in 
trust or restricted lands, and information on the location of 
the parcel and the percentage of undivided interest owned by 
each individual shall, upon written request, be made available 
to
          (1) other [Indian] owners of interests in trust or 
        restricted lands within the same reservation;

           *       *       *       *       *       *       *

          (3) [prospective applicants for the leasing, use, or 
        consolidation of] any person that is leasing, using, or 
        consolidating, or is applying to lease, use, or 
        consolidate, such trust or restricted land or the 
        interest in trust or restricted lands.
  [(f) Notice to Indian Tribe.--After the expiration of the 
limitation period provided for in subsection (b)(2) and prior 
to considering an Indian application to terminate the trust 
status or to remove the restrictions on alienation from trust 
or restricted land sold, exchanged or otherwise conveyed under 
this section, the Indian tribe that exercises jurisdiction over 
the parcel of such land shall be notified of the application 
and given the opportunity to match the purchase price that has 
been offered for the trust or restricted land involved.]
  (f) Purchase of Land by Indian Tribe.--
          (1) In general.--Except as provided in paragraph (2), 
        before the Secretary approves an application to 
        terminate the trust status or remove the restrictions 
        on alienation from a parcel of, or interest in, trust 
        or restricted land, the Indian tribe with jurisdiction 
        over the parcel shall have the opportunity--
                  (A) to match any offer contained in the 
                application; or
                  (B) in a case in which there is no purchase 
                price offered, to acquire the interest in the 
                parcel by paying the fair market value of the 
                interest.
          (2) Exception for family farms.--
                  (A) In general.--Paragraph (1) shall not 
                apply to a parcel of, or interest in, trust or 
                restricted land that is part of a family farm 
                that is conveyed to a member of the family of a 
                landowner (as defined in section 
                206(c)(2)(A)(iv)) if the conveyance requires 
                that in the event that the parcel or interest 
                is offered for sale to an entity or person that 
                is not a member of the family of the landowner, 
                the Indian tribe with jurisdiction over the 
                land shall be afforded the opportunity to 
                purchase the interest pursuant to paragraph 
                (1).
                  (B) Applicability of other provision.--
                Section 206(c)(2)(A) shall apply with respect 
                to the recording and mortgaging of any trust or 
                restricted land referred to in subparagraph 
                (A).

           *       *       *       *       *       *       *


SEC. 219. APPROVAL OF LEASES, RIGHTS-OF-WAY, AND SALES OF NATURAL 
                    RESOURCES.

  (a) * * *
  (b) Applicable Percentage.--
          (1) Percentage interest.--The applicable percentage 
        referred to in subsection (a)(1) shall be determined as 
        follows:
                  (A) If there are 5 or fewer owners of the 
                undivided interest in the allotted land, the 
                applicable percentage shall be [100] 90 
                percent.

           *       *       *       *       *       *       *

  (g) Other Laws.--Nothing in this Act shall be construed to 
supersede, repeal, or modify any general or specific statute 
authorizing the grant or approval of any type of land use 
transaction involving fractional interests in trust or 
restricted land.

           *       *       *       *       *       *       *


SEC. 221. OWNER-MANAGED INTERESTS.

  (a) Purpose.--The purpose of this section is to provide a 
means for the co-owners of trust or restricted interests in a 
parcel of land to enter into surface leases of such parcel for 
certain purposes without approval of the Secretary.
  (b) Mineral Interests.--Nothing in this section shall be 
construed to limit or otherwise affect the application of any 
Federal law requiring the Secretary to approve mineral leases 
or other agreements for the development of the mineral interest 
in trust or restricted land.
  (c) Owner Management.--
          (1) In general.--Notwithstanding any provision of 
        Federal law requiring the Secretary to approve 
        individual Indian leases of individual Indian trust or 
        restricted land, where the owners of all of the 
        undivided trust or restricted interests in a parcel of 
        land have submitted applications to the Secretary 
        pursuant to subsection (a), and the Secretary has 
        approved such applications under subsection (d), such 
        owners may, without further approval by the Secretary, 
        enter into a lease of the parcel for agricultural 
        purposes for a term not to exceed 10 years.
          (2) Rule of construction.--No such lease shall be 
        effective until it has been executed by the owners of 
        all undivided trust or restricted interests in the 
        parcel.
  (d) Approval of Applications for Owner Management.--
          (1) In general.--Subject to the provisions of 
        paragraph (2), the Secretary shall approve an 
        application for owner management submitted by a 
        qualified applicant pursuant to this section unless the 
        Secretary has reason to believe that the applicant is 
        submitting the application as the result of fraud or 
        undue influence. No such application shall be valid or 
        considered if it is received by the Secretary prior to 
        the date that is 1 year after the date on which notice 
        is published pursuant to section 8(a)(4) of the 
        American Indian Probate Reform Act of 2004.
          (2) Commencement of owner-managed status.--
        Notwithstanding the approval of 1 or more applications 
        pursuant to paragraph (1), no trust or restricted 
        interest in a parcel of land shall acquire owner-
        managed status until applications for all of the trust 
        or restricted interests in such parcel of land have 
        been submitted to and approved by the Secretary 
        pursuant to this section.
  (e) Validity of Leases.--No lease of trust or restricted 
interests in a parcel of land that is owner-managed under this 
section shall be valid or enforceable against the owners of 
such interests, or against the land, the interest or the United 
States, unless such lease--
          (1) is consistent with, and entered into in 
        accordance with, the requirements of this section; or
          (2) has been approved by the Secretary in accordance 
        with other Federal laws applicable to the leasing of 
        trust or restricted land.
  (f) Lease Revenues.--The Secretary shall not be responsible 
for the collection of, or accounting for, any lease revenues 
accruing to any interests under a lease authorized by 
subsection (e), so long as such interest is in owner-managed 
status under the provisions of this section.
  (g) Jurisdiction.--
          (1) Jurisdiction unaffected by status.--The Indian 
        tribe with jurisdiction over an interest in trust or 
        restricted land that becomes owner-managed pursuant to 
        this section shall continue to have jurisdiction over 
        the interest to the same extent and in all respects 
        that such tribe had prior to the interest acquiring 
        owner-managed status.
          (2) Persons using land.--Any person holding, leasing, 
        or otherwise using such interest in land shall be 
        considered to consent to the jurisdiction of the Indian 
        tribe referred to in paragraph (1), including such 
        tribe's laws and regulations, if any, relating to the 
        use, and any effects associated with the use, of the 
        interest.
  (h) Continuation of Owner-Managed Status; Revocation.--
          (1) In general.--Subject to the provisions of 
        paragraph (2), after the applications of the owners of 
        all of the trust or restricted interests in a parcel of 
        land have been approved by the Secretary pursuant to 
        subsection (d), each such interest shall continue in 
        owner-managed status under this section notwithstanding 
        any subsequent conveyance of the interest in trust or 
        restricted status to another person or the subsequent 
        descent of the interest in trust or restricted status 
        by testate or intestate succession to 1 or more heirs.
          (2) Revocation.--Owner-managed status of an interest 
        may be revoked upon written request of the owners 
        (including the parents or legal guardians of minors or 
        incompetent owners) of all trust or restricted 
        interests in the parcel, submitted to the Secretary in 
        accordance with regulations adopted under subsection 
        (l). The revocation shall become effective as of the 
        date on which the last of all such requests has been 
        delivered to the Secretary.
          (3) Effect of revocation.--Revocation of owner-
        managed status under paragraph (2) shall not affect the 
        validity of any lease made in accordance with the 
        provisions of this section prior to the effective date 
        of the revocation, provided that, after such revocation 
        becomes effective, the Secretary shall be responsible 
        for the collection of, and accounting for, all future 
        lease revenues accruing to the trust or restricted 
        interests in the parcel from and after such effective 
        date.
  (i) Defined Terms.--
          (1) For purposes of subsection (d)(1), the term 
        ``qualified applicant'' means--
                  (A) a person over the age of 18 who owns a 
                trust or restricted interest in a parcel of 
                land; and
                  (B) the parent or legal guardian of a minor 
                or incompetent person who owns a trust or 
                restricted interest in a parcel of land.
          (2) For purposes of this section, the term ``owner-
        managed status'' means, with respect to a trust or 
        restricted interest, that--
                  (A) the interest is a trust or restricted 
                interest in a parcel of land for which 
                applications covering all trust or restricted 
                interests in such parcel have been submitted to 
                and approved by the Secretary pursuant to 
                subsection (d);
                  (B) the interest may be leased without 
                approval of the Secretary pursuant to, and in a 
                manner that is consistent with, the 
                requirements of this section; and
                  (C) no revocation has occurred under 
                subsection (h)(2).
  (j) Secretarial Approval of Other Transactions.--Except with 
respect to the specific lease transaction described in 
paragraph (1) of subsection (c), interests that acquire owner-
managed status under the provisions of this section shall 
continue to be subject to all Federal laws requiring the 
Secretary to approve transactions involving trust or restricted 
land (including leases with terms of a duration in excess of 10 
years) that would otherwise apply to such interests if the 
interests had not acquired owner-managed status under this 
section.
  (k) Effect of Section.--Subject to subsections (c), (f), and 
(h), nothing in this section diminishes or otherwise affects 
any authority or responsibility of the Secretary with respect 
to an interest in trust or restricted land.

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

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


                SECTION 5 OF THE ACT OF FEBRUARY 8, 1887

  Sec. 5. That upon the approval of the allotments provided for 
in this act by the Secretary of the Interior, he shall cause 
patents to issue therefor in the name of the allottees, which 
patents shall be of the legal effect, and declare that the 
United States does and will hold the land thus allotted, for 
the period of twenty-five years, in trust for the sole use and 
benefit of the Indian to whom such allotment shall have been 
made, or, in case of his decease, of his heirs according to the 
laws of the State or Territory where such land is located, and 
that at the expiration of said period the United States will 
convey the same by patent to said Indian, or his heirs as 
aforesaid, in fee, discharged of said trust and free of all 
charge or incumbrance whatsoever: Provided, That the President 
of the United States may in any case in his discretion extend 
the period. And if any conveyance shall be made of the lands 
set apart and allotted as herein provided, or any contract made 
touching the same, before the expiration of the time above 
mentioned, such conveyance or contract shall be absolutely null 
and void: [Provided, That the law of descent in force in the 
Sate or Territory where such lands are situate shall apply 
thereto after patents therefor have been executed and 
delivered, except as provided by the Indian Land Consolidation 
Act or a tribal probate code approved under such Act and except 
as herein otherwise provided; and the laws of the State of 
Kansas regulating the descent and partition of real estate 
shall, so far as practicable, apply to all lands in the Indian 
Territory which may be allotted in severalty under the 
provisions of this act:] Provided, That the rules of intestate 
succession under the Indian Land Consolidation Act (25 U.S.C. 
2201 et seq.) (including a tribal probate code approved under 
that Act or regulations promulgated under that Act) shall apply 
to that land for which patents have been executed and 
delivered: And provided further, That at any time after lands 
have been allotted to all the Indians of any tribe as herein 
provided, or sooner if in the opinion of the President it shall 
be for the best interests of said tribe, it shall be lawful for 
the Secretary of the Interior to negotiate with such Indian 
tribe for the purchase and release by said tribe, in conformity 
with the treaty or statute under which such reservation is 
held, of such portions of its reservation not allotted as such 
tribe shall, from time to time, consent to sell, on such terms 
and conditions as shall be considered just and equitable 
between the United States and said tribe of Indians, which 
purchase shall not be complete until ratified by Congress, and 
the form and manner of executing such release shall also be 
prescribed by Congress: Provided however, That all lands 
adapted to agriculture, with or without irrigation so sold or 
released to the United States by any Indian tribe shall be held 
by the United States for the sole purpose of securing homes to 
actual settlers and shall be disposed of by the United States 
to actual and bona fide settlers only in tracts not exceeding 
one hundred and sixty acres to any one person, on such terms as 
Congress shall prescribe, subject to grants which Congress may 
make in aid of education: And provided further, That no patents 
shall issue therefor except to the person so taking the same as 
and for a homestead, or his heirs, and after the expiration of 
five years occupancy thereof as such homestead; and any 
conveyance of said lands so taken as a homestead, or any 
contract touching the same, or lien thereon, created prior to 
the date of such patent, shall be null and void. And the sums 
agreed to be paid by the United States as purchase money for 
any portion of any such reservation shall be held in the 
Treasury of the United States for the sole use of the tribe or 
tribes of Indians; to whom such reservations belonged; and the 
same, with interest thereon at three per cent per annum, shall 
be at all times subject to appropriation by Congress for the 
education and civilization of such tribe or tribes of Indians 
or the members thereof. The patents aforesaid shall be recorded 
in the General Land office, and afterward delivered, free of 
charge, to the allottee entitled thereto. And if any religious 
society or other organization is now occupying any of the 
public lands to which this act is applicable, for religious or 
educational work among the Indians, the Secretary of the 
Interior is hereby authorized to confirm such occupation to 
such society or organization, in quantity not exceeding one 
hundred and sixty acres in any one tract, so long as the same 
shall be so occupied, on such terms as he shall deem just; but 
nothing herein contained shall change or alter any claim of 
such society for religious or educational purposes heretofore 
granted by law. And hereafter in the employment of Indian 
police, or any other employes in the public service among any 
of the Indian tribes or bands affected by this act, and where 
Indians can perform the duties required, those Indians who have 
availed themselves of the provisions of this act and become 
citizens of the United States shall be preferred.
  Provided further, That whenever the Secretary of the Interior 
shall be satisfied that any of the Indians of the Siletz Indian 
Reservation, in the State of Oregon, fully capable of managing 
their own business affairs, and being of the age of twenty-one 
years or upward, shall, through inheritance or otherwise, 
become the owner of more than eighty acres of land upon said 
reservation, he shall cause patents to be issued to such Indian 
or Indians for all of such lands over and above the eighty 
acres thereof. Said patent or patents shall be issued for the 
least valuable portions of said lands, and the same shall be 
discharged of any trust and free of all charge, incumbrance, or 
restriction whatsoever; and the Secretary of the Interior is 
hereby authorized and directed to ascertain, as soon as shall 
be practicable, whether any of said Indians of the Siletz 
Reservation should receive patents conveying in fee lands to 
them under the provisions of this Act.
                              ----------                              


                 SECTION 4 OF THE ACT OF JUNE 18, 1934

  Sec. 4. Except as herein provided, no sale, devise, gift, 
exchange or other transfer of restricted Indian lands or of 
shares in the assets of any Indian tribe or corporation 
organized hereunder, shall be made or approved: Provided, 
however, That such lands or interests may, with the approval of 
the Secretary of the Interior, be sold, devised, or otherwise 
transferred to the Indian tribe in which the lands or shares 
are located or from which the shares were derived or to a 
successor corporation; and in all instances such lands or 
interests shall descend or be devised[, in accordance with the 
then existing laws of the State, or Federal laws where 
applicable, in which said lands are located or in which the 
subject matter of the corporation is located,] to any member of 
such tribe or of such corporation or any heirs or lineal 
descendants of such member or[, except as provided by the 
Indian Land Consolidation Act, any other Indian person for whom 
the Secretary of the Interior determines that the United States 
may hold land in trust:] Provided further, That the Secretary 
of the Interior may authorize voluntary exchanges of lands of 
equal value and the voluntary exchange of shares of equal value 
whenever such exchange, in his judgment, is expedient and 
beneficial for or compatible with the proper consolidation of 
Indian lands and for the benefit of cooperative organizations.

                                  
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