[Senate Report 109-206]
[From the U.S. Government Publishing Office]



                                                       Calendar No. 324
109th Congress                                                   Report
                                 SENATE
 1st Session                                                    109-206
=====================================================================
 
     AMENDING THE ACT OF DECEMBER 22, 1974, AND FOR OTHER PURPOSES

                                _______
                                

               December 12, 2005.--Ordered to be printed

                                _______
                                

    Mr. McCain, from the Committee on Indian Affairs, submitted the 
                               following

                              R E P O R T

                         [To accompany S. 1003]

    The Committee on Indian Affairs, to which was referred the 
bill, S. 1003, to amend the Act of December 22, 1974, as 
amended, and for other purposes, having considered the same, 
reports favorably thereon and recommends that the bill do pass.

                                Purpose

    The purpose of S. 1003 is to amend P.L. 93-5311,\1\ the 
Navajo and Hopi Indian Land Settlement Act, to complete the 
relocation program and to phase out the Office of the Navajo 
and Hopi Indian Relocation by September 30, 2008.
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    \1\ 25 U.S.C. Sec. 640d et seq., as amended.
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                               Background

    The Navajo and Hopi Indian Land Settlement Act was enacted 
on December 22, 1974 (hereafter, ``the 1974 Act''). The Act was 
intended to facilitate a settlement of all of the rights and 
interests of the Navajo and Hopi Tribes in lands known as the 
1882 Executive Order Reservation and the 1934 Navajo 
Reservation. The Act was subsequently amended in 1980 (P.L. 96-
305), 1988 (P.L. 100-166), 1991 (P.L. 102-180) and 1995 (P.L. 
104-15).
    The necessity for the 1974 Act arose out of an Executive 
Order signed by President Chester Arthur on December 16, 1882 
and two Acts of Congress enacted on June 14,\2\ and June 18,\3\ 
1934. The 1882 Executive Order set aside approximately 2.5 
million acres of land for the Hopi and ``such other Indians as 
the Secretary of the Interior may see fit to settle thereon.'' 
The 1934 Act established the exterior boundaries of the Navajo 
Nation and set aside the lands within the reservation for the 
Navajos and ``such other Indians as may already be located 
thereon.''
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    \2\ 48 Stat. 960.
    \3\ 48 Stat. 984.
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    At the time of the 1882 Executive Order a small but 
indeterminate number of Navajos resided on portion of the 
reserved lands. At the time of the 1934 enactments, Hopi and 
other Indians, including the San Juan Southern Paiutes, 
occupied the lands reserved as part of the Navajo reservation. 
Most of the Hopi residents of the 1934 Reservation were located 
in the Village of Moencopi near Tuba City, Arizona. Throughout 
the 1890s and up to the present, the Hopi and Navajo Tribes 
have disputed the right to title and occupancy of lands in both 
reservations based on the 1882 Executive Order and the 1934 
Acts of Congress.
    The land disputes intensified in the 1940s as a result of 
action taken by the Secretary of the Interior pursuant to the 
Indian Reorganization Act \4\ to establish grazing management 
districts on the two reservations for livestock control and to 
improve range management and soil conservation. Twenty-one 
districts were established in the early 1940s. District Six, 
comprised of about 631,000 acres, was identified as an 
exclusive Hopi district located in the south-central portion of 
the 1882 Reservation. All remaining districts were assigned to 
the Navajo Tribe.
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    \4\ 25 U.S.C. Sec. 461 et seq.
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    The Hopi Tribe vigorously protested the establishment of 
District Six. Due to increasing tensions between the two 
tribes, the Congress passed the Navajo and Hopi Rehabilitation 
Act in 1950 (P.L. 85-740).\5\ The Act was intended to promote 
cooperation between the tribes by providing federal funding for 
the construction of infrastructure including roads, hospitals, 
irrigation, radio and telephone communications. The Act 
authorized funds for the development of off-reservation 
employment opportunities for members of both tribes and for the 
continuing relocation of Navajos and Hopis to the Colorado 
River Indian Reservation.
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    \5\ 25 U.S.C. Sec. 631 et seq.
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    By 1957, all hope for cooperation and a mutual resolution 
of the underlying land disputes had evaporated. The Hopi Tribe 
sought legislation from Congress authorizing both tribes to sue 
one another to quiet title to the 1882 Reservation. On July 22, 
1958, P.L. 85-547 (72 Stat. 403) was enacted to authorize a 
suit in the Arizona Federal District Court `` . . . for the 
purpose of determining the rights and interests of [each tribe] 
in and to [the 1882 Reservation] and quieting title thereto in 
the tribes . . . establishing such claims . . . as may be just 
and fair in law and equity.'' On August 1, 1958, the Hopi 
Tribes sued the Navajo Tribe under the authority of P.L. 85-
547.
    Four years later, the court ruled that the Hopi Tribe had 
the exclusive right to District Six and that both tribes had 
joint and equal rights to the surface and subsurface of the 
remainder of the 1882 Reservation. Healing v. Jones, 210 F. 
Supp 125 (D. Az. 1962), aff'd 373 U.S. 758 (1963). The area 
outside of District Six became known as the Joint Use Area 
(JUA). Throughout the 1960s and into the early 1970s the Hopi 
Tribe sought assistance from the Department of the Interior to 
gain joint and equal use of the JUA. All efforts by the 
Secretary to negotiate implementation of the Healing decision 
proved futile.
    In the early 1970s, the Hopi Tribe had several favorable 
Federal Court decisions which led to the enactment of the 1974 
Act. In Hamilton v. Nakai, 453 F.2d 152 (9th Cir. 1971) the 
Appellate Court reversed the District Court's denial of a Hopi 
petition for a Writ of Assistance to compel the Navajo Tribe to 
reduce its livestock in the JUA to enable Hopi to have access 
to the lands and to prevent further overgrazing. The Appellate 
Court ruled that the District Court had jurisdiction to enter 
an order in aid of its decision in Healing, even though the 
Congress had not expressly provided that authority to the Court 
in P.L. 85-547.
    In 1972, the United States brought suit on behalf of the 
Hopi Tribe to evict sixteen Navajos who were residing in 
District Six. United States v. Kabinto, 456 F.2d 1087 (9th Cir. 
1972). The Appeals Court held that the Healing decision 
effectively extinguished any claim that the Navajo Tribe may 
have had to aboriginal title in District Six and that no 
compensation was due to the tribe. All Navajos residing in 
District Six were subsequently evicted.
    On March 13, 1970, the Hopi Tribe petitioned the District 
Court for a Writ of Compliance to compel the Navajo Tribe to 
share jointly with it in the surface and subsurface interests 
of the 1882 Reservation outside of District Six. The petition 
was denied. In 1974, the Court of Appeals reversed the District 
Court's ruling. Hamilton v.  MacDonald, 503 F.2d 1138 (9th Cir. 
1975). The District Court subsequently imposed a freeze on any 
new construction by Navajos in the JUA and ordered the 
reduction of livestock herds managed by the Navajos in the JUA.

                              THE 1974 ACT

    P.L. 93-531 was enacted to promote a comprehensive 
settlement of the land dispute between the Navajo and Hopi 
Tribes in the 1882 Reservation and the 1934 Reservation. The 
major provisions of the Act authorize:
           The establishment of Navajo and Hopi 
        negotiating teams under the auspices of a federal 
        mediator for settlement of the 1882 Reservation dispute 
        through partition and land exchanges within a six month 
        period from the date of enactment;
           Court ordered partition of the 1882 
        Reservation based on the mediator's recommendations in 
        the event that the tribal negotiations did not succeed 
        with the prescribed time period;
           Relocation of Navajo and Hopi individuals 
        residing on lands partitioned to the tribe of which 
        they were not a member, with provisions to reduce the 
        hardship of relocation to the degree possible;
           The establishment of a three-member 
        commission in the Department of the Interior to 
        administer the relocation program;
           Authority for the purchase of 250,000 acres 
        of Bureau of Land Management lands by the Navajos for 
        the purposes of relocation;
           A livestock reduction program; and
           Authority for both tribes to sue each other 
        and the United States for damages arising out of the 
        disputes.
    In 1972 and 1973, several bills to settle the land disputes 
were introduced in the Congress prior to enactment of P.L. 93-
531. Several hearings were held on competing bills in the House 
and Senate. Many of these bills included relocation provisions. 
A common estimate of cost for relocation was in the $40 million 
range. As many as 6,000 Navajos were estimated as eligible for 
relocation. In 1977, after failed negotiations, the mediator 
estimated that adopting hisrecommended partition line would 
result in the relocation of approximately 3,495 Navajos.
    The Act intended that the relocation program would be 
complete five years after the Relocation Commission filed its 
plan, or on or about July 7, 1986. However, problems in 
implementing the Act arose and it became necessary for Congress 
to amend the Act several times. In 1980, P.L. 96-305 was 
enacted to amend the provisions on new land selections by the 
Navajo Tribe. These amendments were required due to 
overwhelming non-Indian resistance to the Navajo Nation's 
selection of about 250,000 acres of BLM lands in the Arizona 
``strip'' in the late 1970's pursuant to the original Act. The 
1980 amendments authorized transferring up to 250,000 acres of 
federal land to the Navajo Nation and the acquisition of 
150,000 acres through purchase. Not more than 35,000 acres of 
lands acquired by transfer were authorized to be selected in 
New Mexico. The 1980 amendments also authorized the Relocation 
Commission to grant life estates to certain Navajos residing on 
the 1882 Reservation partitioned to the Hopi Tribe.
    In 1988, Congress amended the Act again. P.L. 100-666 
abolished the three-member Relocation Commissioner and 
established in its place the Office of Navajo and Hopi Indian 
Relocation as an Independent Agency of the Executive Branch 
under the authority of a single Commissioner.
    A 1988 amendment to the Act authorized not more than $10 
million for fiscal years 1990 to 1995 to go into a trust fund 
for the ``rehabilitation and improvement of the economic, 
educational and social condition of families and Navajo 
communities'' affected by the Healing case, relocation, or the 
District Six grazing area. The amendment provided that income 
derived by the Navajo Tribe from surface and minerals rights 
acquired from authorized land purchases would reimburse the 
U.S. Treasury for amounts appropriated to the Fund. The 
Rehabilitation Trust Fund is to be administered by the Navajo 
Tribe under a ``conceptual framework'' approved by the 
Secretary of the Interior.
    In 1991, Congress amended the Act again to extend the 
authorization for the provision of relocation benefits until 
the end of fiscal year 1995. P.L. 102-180. In 1995, Congress 
extended the authorization through the end of fiscal year 1997. 
P.L. 104-15.

         THE NAVAJO AND HOPI SETTLEMENT ACT AMENDMENTS OF 2005

    S. 1003 amends P.L. 93-531, as amended, to provide for the 
termination of the Office of Navajo and Hopi Indian Relocation 
[hereafter ``ONHIR''] by September 30, 2008. At that time, any 
remaining responsibilities under the Act are transferred to the 
Interior Secretary. ONHIR shall transfer to the Secretary the 
remaining personnel and funds to provide relocation benefits to 
remaining eligible individuals who have not received their 
benefits by September 30, 2008. The funds will be held in trust 
by the Secretary for distribution to such individuals or their 
heirs. The bill also establishes an expedited appellate 
procedure for final eligibility determinations.
    As noted above, the Office of Navajo and Hopi Indian 
Relocation was established by Public Law 100-666. The Act 
authorized ONHIR to make eligibility determinations and to hear 
appeals of those denied eligibility. Appeals of ineligibility 
decisions may be brought in federal court within 6 years of 
ONHIR's final decision. Congress originally imposed a July 1985 
deadline for Navajos and Hopis to apply for relocation benefits 
through the ONHIR. A court order postponed that deadline to 
July 7, 1986.
    To be eligible for relocation benefits, an applicant (1) 
must have been a legal resident of the disputed land on 
December 22, 1974 and (2) must be the head of the household 
before July 7, 1986. Death or divorce from an original ``head 
of household'' could provide an exception to the criteria. 
Those found eligible are assigned a counselor to help them 
determine an area of relocation (on or off the reservation), 
acquire a home site, purchase an existing home or build a new 
one. Once relocated, the family is provided financial and other 
assistance to adjust to their new surroundings. At its 
inception, ONHIR employed 108 employees to carry out these 
responsibilities.
    By 1985, ONHIR had certified 1,276 individuals as eligible 
for relocation benefits. By 1994, that number increased to 
3,302. As of May 1996 a total of 4,432 heads of household from 
both tribes had applied for relocation benefits. Of those 
certified, 26 were enrolled in the Hopi Tribe and 3,258 were 
enrolled in the Navajo Tribe. Of the Navajos who were 
certified, 2,617 households had received their benefits and 641 
were still awaiting their relocation benefits. By April 1996, 
the cost for the relocation program was $319 million.
    In the 104th Congress, S. 2111 was introduced to phase-out 
the relocation program by September 2001. A hearing was held on 
the bill and many of the witnesses testified that the program 
could come to a close by 2001. Nonetheless, opposition to final 
passage remained due to pending approval by the Department of 
the Interior of the Accommodation Lease Agreement that provided 
for Navajo families to remain on portions of the Hopi 
Partitioned Land with the consent of the Hopi Tribe.
    The Committee believes that the ONHIR has consistently made 
best efforts to make relocation services available to all 
eligible Navajos and Hopis. Despite the July 1986 deadline for 
application and ONHIR's efforts, however, by 1996, an estimated 
50-100 individuals who were likely eligible for relocation 
benefits had not yet applied for such benefits. By March 2005, 
the ONHIR estimated that approximately 50 such individuals had 
not applied for relocation benefits. Nonetheless, by March, 
2005, ONHIR had certified a total of 3,626 individuals as 
eligible for relocation benefits and documented 6 active 
pending appeals challenging a finding of ineligibility for 
relocation services. The Committee believes that ample notice 
to eligible individuals about the relocation program and the 
process for application has occurred over the last 30 years.
    The Committee is also aware that actual funding for 
settlement activity has far exceeded the original cost estimate 
of $40 million. By June 2005, expenditures of ONHIR were 
estimated at approximately $480 million. Contributing to this 
is the continuing increase in cost to provide replacement home 
benefits over the last 30 years. These costs rose from $17,000 
to $25,000 in 1974, $55,000 in 1985, and to $114,000 in 2005. 
During the operation of the relocation program, the average 
cost per home or move has steadily increased and continues to 
increase exponentially.

Title I, Amendments to the Act of December 22, 1974

    To accomplish the intent of S. 1003, existing Sections of 
the Act are redesignated and seven sections of the Act are 
repealed, including Sections 1 through 5. These sections 
provide for the authority of the mediator, the tribal 
negotiating teams and the Arizona Federal District Court for 
the partition of the JUA. The authorities conferred by these 
Sections have been fully discharged. Similarly, Section 13, 
relating to the preparation and filing of reports to the 
Congress by the Commissioner is repealed. The mandated reports 
have been filed and no further reports are necessary.
    Section 6 which provides guidelines for use by the mediator 
and the court for partitioning the 1882 Reservation would be 
partially repealed as this authority has been discharged.
    Section 8 is amended by repealing paragraph (f) relating to 
the payment of legal fees for the San Juan Southern Paiute 
Tribe. This paragraph was added by P.L. 100-166 in 1988 and has 
since been discharged by the subsequent federal recognition by 
the Secretary of the Interior of the San Juan Southern Paiute 
Tribe.
    Section 10 is amended by striking any reference to life 
estates. This amendment has the effect of conforming the 
amended Act to reflect the repeal of Section 30.
    Section 11 is amended to terminate the Commissioner's 
authority to select new lands for the Navajo Nation on 
September 30, 2006. Under the Act, the Commissioner's authority 
to select lands continues until the land selection is complete 
or until the President determines that the functions of the 
ONHIR have been fully discharged pursuant to Section 12 of the 
Act. To phase-out the ONHIR in an orderly fashion, termination 
of the Commissioner's land selection authority by a date 
certain is required. The Committee notes that although the 
Navajo Nation has previously selected the acreage available by 
the Act in New Mexico, it still may select up to another 13,000 
acres for purchase in Arizona. The tribe may also request that 
the Commissioner request that the lands be taken into trust to 
complete all of the selections of land authorized by the 1980 
amendments to the Act. P.L. 96-305.
    Section 12 is amended to terminate the Office of Navajo and 
Hopi Indian Relocation on September 30, 2008, rather than at 
the discretion of the President. The Committee believes that it 
is important to set a date certain to facilitate the orderly 
implementation of the Act.
    Section 12 is further amended to provide for the transfer 
of all remaining responsibilities, funds and personnel of 
ONHIR, effective October 1, 2006, to an Office of Relocation 
within the Office of the Department of the Interior. This 
earlier date authorizes the Secretary to prepare for assumption 
of this responsibility and to permit the smooth transition of 
ONHIR personnel and resources prior to the closure of ONHIR. 
Thereafter, the Secretary is authorized to implement the final 
disposition of the relocation program and to terminate the 
Office once these responsibilities are complete. In 
establishing an Office with the Interior Department, 
theCommittee is aware that a potential for conflict of interest in the 
Bureau of Indian Affairs [hereafter ``BIA''] in administering any 
aspect of P.L. 93-531. The Committee's expects that the Office of 
Relocation be sufficiently removed from the day-to-day business of the 
BIA to avoid such conflicts of interest.
    The Committee is aware that the Interior Department is 
concerned about taking on additional responsibilities. The 
Committee believes that the responsibilities to be transferred 
by September 2008 will be minimal. Moreover, it is not intended 
to be permanent. The ONHIR continues to implement its 
responsibilities at a reasonable pace. Indeed, the ONHIR has 
informed the Committee that as of March 2005, approximately 130 
families remained to be relocated. ONHIR reports anticipating 
that of the 130 families, 50 will be relocated during fiscal 
year 2005 and that 65 families will be relocated in fiscal year 
2006. Further, the ONHIR anticipates closing approximately 15 
inactive cases. Therefore, the responsibilities to be assumed 
by the Secretary are minimal but necessary to bring to finality 
this temporary program.
    Section 14 is amended in paragraph (a) to delete a 
reference to the filing of the relocation program plan and the 
completion of the program within five years from the date the 
plan was to take effect. Although the original Relocation 
Commission filed the required plan on July 7, 1981, completing 
the relocation program by 1986 proved futile. A number of 
factors contributed to the slow pace of the relocation program, 
including an extremely low estimate by the BIA of approximately 
1000 households to be relocated, resistance to Navajo land 
selections, delays in administration of the National Historic 
Preservation Act and the Archaeological Resources Protection 
Act as they apply to the activities of the relocation program, 
uncertainties associated with efforts to redraw the original 
partition line in the 1882 Reservation and numerous court 
challenges to the Act and its administration by either the 
Commission or the Interior Secretary. The amendments to 
paragraph (a) reflect the reality of these delays and otherwise 
conform the Act to the amendments contained in this 
legislation.
    Section 14 is further amended to add a new paragraph (d) 
which prohibits the payment of any benefits under the Act to 
any head of household who has not been certified eligible for 
benefits by September 30, 2008. The Committee intends that the 
seemingly never ending process of determining eligibility for 
relocation benefits be completed by a certain date. As noted 
earlier, individuals have had approximately 30 years in which 
to apply for benefits or to appeal ineligibility claims. Other 
provisions of the bill would establish procedures to ensure 
adequate notice to any potentially eligible individuals, fair 
review of their applications and prompt appeals of eligibility 
denials.
    Section 15 is amended by adding several new paragraphs. The 
Committee is aware that there are many eligible relocatees who 
long ago left the partitioned lands in an effort to comply with 
the Act, but who may not have received their replacement homes 
for various reasons. The new paragraph (e) in Section 15 
ensures that these individuals receive the benefits for which 
they have been certified as eligible. If a replacement home has 
not been provided by the time that the ONHIR ceases to exist, 
this provision provides a final opportunity for the eligible 
head of household to receive a replacement home or for his or 
her heirs to receive their pro-rata share of the replacement 
home benefit in cash.
    The new paragraph (e) requires the Commissioner of the 
ONHIR to notify the Secretary of any eligible relocatees who 
have left the lands partitioned to the tribe of which they are 
not members, but whose circumstances have prevented ONHIR from 
completing the replacement home process and who have not 
received a replacement home by September 30, 2008. The 
Commissioner would simultaneously transfer to the Secretary the 
funds necessary to provide such homes. The Secretary will hold 
the funds in trust for the benefit of each head of household 
until such time as the head of household request the funds for 
the acquisition of a replacement home. If no replacement home 
has been selected by the head of household at the time of his 
or her death, the Secretary will distribute the funds to his or 
her adult heir. Such funds would no longer be held in trust. If 
the heirs of the head of household are minors, the Secretary 
would continue to hold their share of the funds in trust until 
they attain the age of majority. The funds would then be 
distributed to such heirs and cease to be held in trust.
    A new paragraph (f) is also added to Section 15 which 
requires the Commissioner to implement the provisions of 25 
C.F.R. sections 700.138 and 700.139 commencing 180 days after 
the date of enactment. This amendment is intended to ensure 
timely completion of identifying, notifying and reaching 
eligibility determinations for individuals who were residents 
on July 7, 1986 of the 1882 Reservation lands partitioned to 
the Hopi Tribe who have continuously resided there since that 
date and who were also otherwise eligible for relocation 
benefits. This amendment also clarifies the roles of the 
Interior Secretary, the Commissioner and the United States 
Attorney for the District of Arizona in the possible removal of 
individuals from Hopi partitioned lands and the construction of 
replacement homes for those individuals. The Commissioner's 
authority to begin construction of replacement homes for such 
individuals would cease after July 1, 2008. This provision 
provides adequate time for the Commissioner to complete the 
construction of homes prior to the September 30, 2008, ONHIR 
closure.
    Section 15 is further amended by adding a new paragraph (i) 
to authorize the Commissioner to establish expedited procedures 
for reaching final determinations after an appeal from a 
decision of ineligibility for relocation benefits. As of May 1, 
1996, the ONHIR had 115 active pending appeals. By March 2005, 
ONHIR had 6 appeals, including active and inactive appeals. 
These appeals of ineligibility would be processed under an 
expedited procedure established by the Commissioner. The 
Committee expects that other appeals may arise as a result of 
the new paragraph (i) which requires the Commissioner to 
provide notice to anyone who may have a right to an eligibility 
determination who must file a request for such determination 
within 180 days of the notice. A denial of eligibility arising 
therefrom would be processed through the expedited appeals 
process.
    The Committee is aware that the Commissioner will be 
operating on a tight time-line under this section. To the 
extent that any of these amendments require that the 
Commissioner publish new rules, the Committee anticipates that 
the Commissioner will publish Interim Final Rules consistent 
with the Administrative Procedures Act to permit public comment 
on the rules while the amendments are being implemented and the 
relocation program is being completed.
    A new paragraph (j) is added to Section 15 to authorize the 
Commissioner to contract for services and employ personnel in 
order to complete the expedited eligibility determination and 
appeals process. The Director of the Interior Department's 
Office of Hearings and Appeals is authorized to make a 
qualified hearing officer available to the Commissioner.
    A new paragraph (k) is added to Section 15 to establish a 
process for expedited judicial review of any final decision of 
the ONHIR which results in a denial of relocation benefits. 
Under this procedure, applicants who have been determined 
ineligible would have 30 days from the date of such 
determination to file an appeal in the Ninth Circuit United 
States Court of Appeals. The Commissioner would then certify 
the record to the Court and the Court would have 60 days from 
the receipt of the certified record to complete its review of 
the appeal. All decisions of the Court would be final with no 
further appeal provided. Any determination of the Commissioner 
which is supported by substantial evidence would be affirmed by 
the Court. The Committee believes that, given the time that 
individuals have had to apply for benefits, the estimated 
number of bona fide eligible individuals that have not to date 
applied and the current appeals pending, the expedited judicial 
review will not have a significant impact on the Court or its 
function.
    Section 25 of the Act is amended in paragraph (a) to 
provide an authorization for such sums as are necessary to 
carry out the relocation program for fiscal years 2006, 2007 
and 2008. Although ONHIR will cease to exist on September 30, 
2008, the Committee has authorized funding through fiscal year 
2008 to ensure that the Secretary has an authorization for such 
funds as may be necessary to carry out its duties in that 
fiscal year.
    Section 25 is also amended by deleting the authority for 
appropriations for the mediator, life estates and the 
discretionary funds for the Commissioner. These funds are 
supplemental and not required for the completion of the 
relocation program. They do not conform to other provisions of 
the Act as amended.
    Section 27 is amended by repealing paragraph (c) providing 
for construction of the Hopi High School and the Health Center. 
This provision has been fully discharged.
    Section 28 is amended by adding a new paragraph (c) to 
require that the construction activities of the Commission be 
undertaken in compliance with 16 U.S.C. Sec. Sec. 469a-1-469c. 
Compliance with these sections ensures compliance with the 
National Historic Preservation Act [NHPA] and the 
Archaeological Resource Protection Act [ARPA]. One major cause 
of delay in completing the relocation program has been the 
lengthy process of completing the consultation required of the 
ONHIR under NHPA and ARPA. Requiring compliance with sections 
469a-1 through 469c will provide adequate protection for 
protected property and resources while allowing the 
Commissioner to expeditiously discharge its duties to 
relocatees. The Committee expects that personnel experienced in 
the protection of cultural resources will continue to be 
employed with ONHIR to ensure full compliance with these 
statutes. The Committee urges the ONHIR and the Secretary to 
enter into a Memorandum of Understanding on how they will 
implement any remaining duties affected by this section.
    Section 30, relating to life estates is repealed. This 
provision was added in the 1980 amendments but was never 
implemented by its intended beneficiaries--the Navajos residing 
on lands in the 1882 Reservation which had been partitioned to 
the Hopi Tribe. Due to the uniqueNavajo culture, the ``life 
estates'' were viewed as ``death estates,'' consequently, only one 
eligible Navajo chose to consider the option to remain on lands 
partitioned to the Hopi Tribe pursuant to this section.
    Finally, throughout the Act, various technical and 
correctional amendments are provided to ensure conformity and 
ease of reference.

Title II, Personnel of the Office of Navajo and Hopi Indian Relocation

    Title II of S. 1003 includes amendments to facilitate the 
work of the ONHIR personnel while providing for their orderly 
placement and retirement. At its inception, ONHIR employed 108 
employees. As of May 1996, the Office employed 85 full-time and 
2 temporary employees. As of March 2005, the ONHIR employed 49 
individuals. Of these employees, approximately 10 will not be 
entitled to immediate retirement or discontinued service by 
September 2008. All remaining employees are immediately 
eligible for retirement or discontinued service or will be by 
September 2008. As ONHIR phases out its duty, the Commissioner 
will require authority to exercise discretion and to provide 
modest incentives to employees to effectively manage the 
reduction in work force while simultaneously completing the 
relocation program.
    Section 5597 of Title 5 is amended to provide for voluntary 
separation incentive payments to personnel of the ONHIR to 
increase attrition. The Commissioner would be authorized to 
restrict which positions may be eligible for such payments in 
order to avoid the disruption of work. The incentive payments 
would not be limited to severance pay levels.
    Sections 8336, 8339, 8412 and 8415 of Title 5 is amended to 
modify the retirement computations for employees who are 
eligible for retirement under early or optional retirement 
regulations. These amendments are intended to promote 
reductions in ONHIR personnel without the need for adverse 
action and to provide retirement benefits comparable to those 
available to other agency federal employees who have the 
opportunity to complete their service and retire.
    A change would also be made in the annuity formula of the 
Federal Employee Retirement System [FERS] for employees of 
ONHIR to provide a comparable increased retirement for those 
under this system. There is precedent for instituting such a 
change in annuity computation, as was provided for certain 
Indian Health Service and BIA employees in P.L. 96-135.
    The Committee is aware that the Office of Personnel 
Management opposes the provisions of Title II. Primarily, OPM 
is concerned that the ONHIR employees should not receive 
employment benefits that differ from any other federal 
employee. The Committee recognizes that reductions in the 
number of employees of ONHIR through attrition and outplacement 
will likely be nominal by 2008. Budgetary impacts of the 
proposed modifications to the annuity computation formulas are 
therefore, negligible.

Title III, Transfer of Functions and Savings Provisions

    Title III of S. 1003 includes amendments to permit a 
seamless transition of relocation duties from the ONHIR to the 
Interior Department. Included in this title are provisions to 
ensure that all remaining functions, including assets, 
liabilities, unexpended balances, authorizations and 
appropriations are transferred to the Secretary and thereafter 
such resources shall be used only for their intended purpose. 
The Committee expects that the Secretary shall resolve all 
remaining relocation responsibilities in a manner consistent 
with existing ONHIR policy and procedure. In so doing, the 
Secretary is authorized to rely on existing legal documents, 
such as federal regulations and policies until such time as a 
particular function is complete.

                          Legislative History

    S. 1003 was introduced by Senator McCain on May 21, 2005 
and the bill was referred to the Senate Committee on Indian 
Affairs. On July 21, 2005, the Committee on Indian Affairs held 
a hearing on S. 1003.

            Committee Recommendation and Tabulation of Vote

    In an open business meeting on October 27, 2005, the 
Committee on Indian Affairs unanimously voted to order the bill 
reported with the recommendation that the Senate pass the bill.

                      Section-by-Section Analysis

    Section 1. Short Title. This section provides that the bill 
may be cited as the ``Navajo and Hopi Settlement Act Amendments 
of 2005.''
    Section 101. Amendments to the Navajo and Hopi Settlement 
Act. This section sets forth twenty-six amendments to the 
Navajo and Hopi Settlement Act, as amended, as follows:
    1. Seven sections are repealed: Section 1 (25 U.S.C. 
Sec. 640d) providing for the appointment and duties of a 
Mediator; Section 2 (25 U.S.C. Sec. 640d-1) establishing the 
appointment and duties of the Navajo and Hopi negotiating 
teams; Section 3 (25 U.S.C. Sec. 640-d) relating to 
implementation of agreements reached by the negotiating teams; 
Section 4 (25 U.S.C. Sec. 640d-3) establishing procedures to be 
used by the Mediator and the Federal District Court should the 
negotiating teams not reach agreement; Section 5 (25 U.S.C. 
Sec. 640d-4) providing other recommendations by the Mediator 
and the Federal District Court; Section 13 (25 U.S.C. 
Sec. 640d-12) requiring the Commission to prepare and file 
reports in the Congress; Section 30 (25 U.S.C. Sec. 640d-28) 
providing life estates to Navajos residing on Hopi partitioned 
lands.
    2. By redesignating, partially repealing and amending 
Section 6 (25 U.S.C. Sec. 640d-5) relating to the partition of 
the Joint Use Area of the 1882 Reservation established by 
Executive Order.
    3. By deliniating a Definition Section as Section 1.
    4. By redesignating the remaining Section 6 as Section 2.
    5. By redesignating Section 7 (25 U.S.C.Sec. 640d-6) as 
Section 3.
    6. By redesignating Section 8 (25 U.S.C. Sec. 640d-7) as 
Section 4 and by repealing subparagraph (f) which contained 
provisions relating to the payment of legal fees for the San 
Juan Southern Paiute Tribe prior to its Federal recognition.
    7. By redesignating Section 9 (25 U.S.C. Sec. 640d-8) as 
Section 5.
    8. By redesignating Section 10 (25 U.S.C. Sec. 640d-9) as 
Section 6.
    9. By redesignating Section 11(a) (25 U.S.C. Sec. 640-
10(a)) as Section 7 and amending it to terminate the 
Commissioner's authority to select lands for the Navajo Nation 
on September 30, 2008, and to authorize the Commissioner to 
make homesites available to extended family members of Navajos 
who are deemed eligible for benefits to facilitate the 
relocation process.
    10. By redesignating Section 12 (25 U.S.C. Sec. 640d-11) as 
Section 8. This section is amended to provide for: termination 
of the ONHIR on September 30, 2008; the transfer of all 
remaining responsibilities, personnel, funds and resources to 
the Secretary of the Interior; to establish an Office of 
Relocation in the Office of the Secretary which will remain 
until all relocation functions are discharged.
    11. By redesignating Section 13 (25 U.S.C. Sec. 640d-12) as 
Section 9.
    12. By redesignating Section 14 (25 U.S.C. Sec. 640d-13) as 
Section 10 and deleting references in paragraph (a) requiring 
the filing of a relocation plan and completing the relocation 
program. A new paragraph (d) is added to prohibit payment of 
benefits to any head of household not certified as eligible by 
September 30, 2008.
    13. By redesignating Section 15 (25 U.S.C. Sec. 640d-14) as 
Section 11 and amending it to add a new paragraph (e) to 
require the Commissioner to notify the Secretary by September 
30, 2008, of any eligible relocatees who have left partitioned 
lands but who have not received a replacement home and to 
transfer the funds to do so. The Secretary is authorized to 
hold such funds in trust for each head of household until the 
head of household requests a replacement home. If the Secretary 
holds the funds for head of household at the time of his or her 
death, the funds shall be distributed to the heirs of the head 
of household and shall no longer be held in trust.
    This section of the Act is further amended by adding a new 
paragraph (f) which directs the Commissioner to implement the 
provisions of 25 C.F.R. Sec. 700.138 within 180 days after the 
enactment of these amendments. Upon the expiration of all time 
periods in 25 C.F.R. Sec. 700.138, the Commissioner shall 
provide notice to the Secretary and United States Attorney for 
the District of Arizona which are required by section 700.139. 
At any time prior to July 1, 2008, the Commissioner is 
authorized to construct a replacement home within 90 days of 
receiving notice from the Secretary or the United States 
Attorney, that the removal of a relocatee from the Hopi 
partitioned lands is imminent.
    This section of the Act is also amended by striking the 
existing paragraph (g) and inserting in lieu thereof a new 
paragraph (i) to authorize the Commissioner to establish an 
expedited procedure for reaching final determination on any 
appeal from denial of eligibility. The Commissioner must 
provide a final notice, by mail and/or publication, to anyone 
who may have a right to an eligibility determination within 30 
days from enactment of the amendments and all requests for such 
determinations must be filed within 180 days from the date of 
notice.
    A new paragraph (j) is added to this section to authorize 
the Commissioner to contract for services and employ personnel 
to provide eligibility determinations and appeals. Upon 
request, the Director of the Office of Hearings and Appeals of 
the Department of the Interior shall provide a hearing officer 
to the Commissioner to assist in hearings to review 
eligibility.
    A new paragraph (k) is added to provide for a final and 
expedited appeal of any final eligibility determination by the 
Office of the Circuit Court of Appeals for the Ninth Circuit. 
All appeals shall be filed within 30 days of final action by 
ONHIR and the Court shall complete its review within 60 days 
after receipt of the certified record from ONHIR. All such 
appeals shall be reviewed on the basis of a certified record 
and any denial of eligibility which is supported by substantial 
evidence shall be affirmed.
    14. By redesignating Section 16 (25 U.S.C. Sec. 640d-15) as 
Section 12.
    15. By redesignating Section 17 (25 U.S.C. Sec. 640d-16) as 
Section 13.
    16. By redesignating Section 18 (25 U.S.C. Sec. 640d-17) as 
Section 14.
    17. By redesignating Section 19 (25 U.S.C. Sec. 640d-18) as 
Section 15.
    18. By redesignating Section 20 (25 U.S.C. Sec. 640d-19) as 
Section 16.
    19. By redesignating Section 21 (25 U.S.C. Sec. 640d-20) as 
Section 17.
    20. By redesignating Section 22 (25 U.S.C. Sec. 640d-21) as 
Section 18.
    21. By redesignating Section 23 (25 U.S.C. Sec. 640d-22) as 
Section 19.
    22. By redesignating Section 24 (25 U.S.C. Sec. 640d-23) as 
Section 20.
    23. By redesignating Section 25 (25 U.S.C. Sec. 640d-24) as 
Section 27. This section is further amended to provide 
authorizations of appropriations for fiscal years 2006 through 
2008.
    24. By redesignating Section 27 (25 U.S.C. Sec. 640d-25) as 
Section 21.
    25. By redesignating Section 28 (25 U.S.C. Sec. 640d-26) as 
Section 22.
    26. By redesignating Section 29 (25 U.S.C. Sec. 640d-27) as 
Section 23.
    27. By redesignating Section 31 (25 U.S.C. Sec. 640d-29) as 
Section 24.
    28. By redesignating Section 32 (25 U.S.C. Sec. 640d-30) as 
Section 25.
    29. By redesignating the second designated Section 32 (25 
U.S.C. Sec. 640-31) as Section 26.

    Title II, Personnel of the Office of Navajo and Hopi Indian 
Relocation. Section 201 contains six amendments to Title 5 of 
the United States Code as follows:
    1. By amending pargraph (b) of Section 3501 to exclude 
employees of the ONHIR from reduction-in-force regulations.
    2. By amending Section 5597 to include employees of the 
ONHIR in the provisions for voluntary and separation incentive 
pay.
    3. By amending Section 8336 to include employees of the 
ONHIR in subparagraph (1) to make them eligible for early or 
optional retirement programs.
    4. By amending Section 8336 to modify the retirement 
computations for those employees of the ONHIR who can retire 
under early or optional retirement regulations.
    5. By amending Section 8412 to include employees of the 
ONHIR in the annuity provisions.
    6. By amending Section 8415 to modify the annuity 
computations for employees of the ONHIR who are eligible for 
annuities.

    Title III, Transfer of Functions and Savings Provisions. 
This title provides the Secretary of the Interior with 
necessary authority to receive funds, personnel and resources 
from the ONHIR to implement its remaining responsibilities 
until such time as those responsibilities are complete.

                    Cost and Budgetary Consideration

    The cost estimate for S. 1003, as calculated by the 
Congressional Budget Office is set forth below:

                                                  December 2, 2005.
Hon. John McCain,
Chairman, Committee on Indian Affairs,
 U.S. Senate, Washington, DC.
    Dear Mr. Chairman: The Congressional Budget Office has 
prepared the enclosed cost estimate for S. 1003, the Navajo-
Hopi Land Settlement Amendments of 2005.
    If you wish further details on this estimate, we will be 
pleased to provide them. The CBO staff contact is Matthew 
Pickford.
            Sincerely,
                                       Douglas Holtz-Eakin,
                                                          Director.
    Enclosure.

S. 1003--Navajo-Hopi Land Settlement Amendments of 2005

    Summary: S. 1003 would amend the Navajo-Hopi Land 
Settlement Act of 1974 to phase out the responsibilities of the 
Office of Navajo and Hopi Indian Relocation (ONHIR) and close 
that office at the end of fiscal year 2008. The remaining 
duties of the ONHIR would be transferred to a new Office of 
Relocation within the Department of the Interior. The bill also 
would make technical changes to federal laws concerning the 
Navajo-Hopi land settlement. Finally, the bill would amend 
civil service laws regarding the personnel of ONHIR.
    CBO estimates that enacting S. 1003 would have no 
significant effect on direct spending or revenues. In addition, 
we estimate that implementing S. 1003 would reduce 
discretionary spending by $15 million over the 2009-2010 period 
(relative to estimated baseline spending over that period), 
assuming appropriations are reduced by the estimated amounts.
    S. 1003 contains no intergovernmental or private-sector 
mandates as defined in the Unfunded Mandates Reform Act (UMRA). 
The bill would eliminate a provision that currently authorizes 
assistance to the Navajo and Hopi Tribes for expenses 
associated with the relocation process. It would impose no 
other costs on state, local, or tribal governments.
    Estimated cost to the Federal Government: The estimated 
budgetary impact of S. 1003 is shown in the following table. 
The cost of this legislation falls within budget functions 450 
(community development) and 800 (general government).

----------------------------------------------------------------------------------------------------------------
                                                                    By fiscal year, in millions of dollars--
                                                               -------------------------------------------------
                                                                  2006      2007      2008      2009      2010
----------------------------------------------------------------------------------------------------------------
                                      SPENDING SUBJECT TO APPROPRIATION \1\

ONHIR Spending Under Current Law: \2\
    Estimated Authorization Level.............................         9         9         9        10        10
    Estimated Outlays.........................................         9         9         9        10        10
Proposed Changes:
    Spending for ONHIR:
        Estimated Authorization Level.........................         0         0         0       -10       -10
        Estimated Outlays.....................................         0         0         0        -9       -10
    Spending for Office of Relocations:
        Estimated Authorization Level.........................         0         *         *         2         2
        Estimated Outlays.....................................         0         *         *         2         2
    Separation Pay:
        Estimated Authorization Level.........................         0         *         *         *         *
        Estimated Outlays.....................................         0         *         *         *         *
ONHIR Spending Under S. 1003:
    Estimated Authorization Level.............................         9         9         9         2         2
    Estimated Outlays.........................................         9         9         9         3         2
----------------------------------------------------------------------------------------------------------------
\1\ Enacting S. 1003 also would increase direct spending by less than $500,000 a year over the 2006-2015 period.
\2\ Current law authorizes the appropriation of such sums as are necessary for fiscal years 2006 through 2008
  for ONHIR.
CBO's baseline over that period is equal to the 2006 appropriation adjusted for anticipated inflation.

Notes: * = less than $500,000; components may not sum to totals because of rounding.

    Basis of estimate: For this estimate, CBO assumes that the 
bill will be enacted in fiscal year 2006 and that the necessary 
amounts will be provided each year.

Spending subject to appropriation

    CBO estimates that implementing S. 1003 would save $15 
million over the 2006-2010 period--relative to CBO's baseline 
projections--and assuming appropriations are reduced by the 
estimated amounts.
    Office of Navajo-Hopi Indian Relocation. S. 1003 would 
phase out the activities of the ONHIR as authorized by the 
Navajo-Hopi Land Settlement Act of 1974, terminate the office 
on September 30, 2008, and transfer all remaining activities to 
the Department of Interior (DOI). The bill would require ONHIR 
to transfer all remaining funds for construction of replacement 
homes to those who have not received a replacement home by 
September 30, 2008. Based on the level of funding for 2006, 
information from ONHIR, and adjusting for anticipated 
inflation, CBO estimates that the termination of the office 
would save about $19 million over the 2009-2010 period.
    Office of Relocation. S. 1003 would establish an Office of 
Relocation within DOI on October 1, 2006, to take over the 
remaining duties and responsibilities of the ONHIR. This would 
include final construction projects and funds held in trust for 
future construction projects for individuals and future heirs. 
Based on information from ONHIR, CBO estimates that the new 
office would cost about $2 million annually over the 2009-2010 
period.
    Separation Pay. S. 1003 would establish a program to 
provide separation pay for the employees of ONHIR over the 
2007-2010 period during the phaseout of ONHIR and the transfer 
of duties to DOI. Based on information from ONHIR, CBO expects 
that this provision would not significantly affect federal 
spending because less than 50 employees would qualify for such 
payments.

Direct spending

    Federal employees who were first hired before 1985 are 
generally covered by the Civil Service Retirement System 
(CSRS), while most other employees are covered by the Federal 
Employees' Retirement System (FERS). S. 1003 would use a more-
generous formula to calculate retirement benefits for certain 
workers employed by the Office of Navajo and Hopi Indian 
Relocation.
    About 50 employees currently work for the Office of Navajo 
and Hopi Indian Relocation, and CBO expects almost all of those 
workers would qualify for the higher benefits once they retire. 
The higher accrual rate would boost annuities for workers by 10 
percent to 20 percent. Because of the small number of employees 
involved, CBO estimates that direct spending on CSRS and FERS 
retirement benefits would increase, but by less than $500,000 a 
year over the 2006-2015 period.
    Intergovernmental and private-sector impact: S. 1003 
contains no intergovernmental or private-sector mandates as 
defined in UMRA. The bill would eliminate a provision that 
currently authorizes assistance to the Navajo and Hopi Tribes 
for expenses associated with the relocation process. It would 
impose no other costs on State, local, or tribal governments.
    Estimate prepared by: Federal Costs: DOI Spending: Matthew 
Pickford; Separation Pay: Ellen Hays; Civil Service Retirement: 
Craig Meklir and Geoff Gerhardt.
    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.

               Regulatory and Paperwork Impact Statement

    Paragraph 11(b) of rule XXVI of the Standing Rules of the 
Senate requires that each report accompanying a bill to 
evaluate the regulatory and paperwork impact that would be 
incurred in carrying out the bill. The Committee concludes that 
S. 1003 will reduce regulatory or paperwork requirements and 
impacts.

                        Executive Communications

    The Committee has not received written correspondence from 
the Department of the Interior. However, the Department of the 
Interior did provide written and oral testimony on the bill at 
a Committee Hearing on July 21, 2005. The Committee received a 
letter from the Office of Personnel Management regarding title 
II of the bill. The letter is attached.

                       U.S. Office of Personnel Management,
                                Washington, DC, September 26, 2005.
Hon. John McCain,
Chairman, Committee on Indian Affairs,
U.S. Senate, Hart Senate Office Building, Washington, DC.
    Dear Mr. Chairman: I am writing to offer the views of the 
Office of Personnel Management (OPM) on S. 1003, the ``Navajo-
Hopi Land Settlement Amendments of 2005.''
    This bill would amend prior statutory provisions intended 
to provide the basis for settlement of longstanding territorial 
disputes involving the Navajo Nation and the Hopi Tribe. In 
1974, Public Law 93-531, the Navajo and Hopi Settlement Act, 
established a Navajo and Hopi Indian Relocation Commission in 
the Department of Interior. In 1988, Public Law 100-666 
abolished the Commission and established in its place the 
Office of Navajo and Hopi Indian Relocation (ONHIR) as an 
independent agency within the executive branch. ONHIR was not 
intended to be a permanent organization, and a one-time 
authorization for providing relocation benefits would have 
expired at the end of fiscal year 1997. The principal purpose 
of the proposed amendments is to provide for the completion of 
the relocation program, and termination of ONHIR by September 
30, 2008. We take no position with regard to this central 
aspect of the proposal.
    In terms of human capital management, there is nothing that 
sets ONHIR apart from numerous other temporary Government 
entities. ONHIR was established as a temporary organization. 
While its life has been extended, it will eventually terminate. 
Its employees have always understood that their organization 
would sunset. There is time for an orderly shutdown. Thus, no 
basis exists to treat ONHIR in a manner different from other 
temporary Government entities as to human resources policy. 
However, Title II of the bill includes such provisions, related 
to reduction in force, separation payments, and retirement. We 
strongly oppose each of these provisions.
    Section 201 would revise present 5 U.S.C. 3501(b) to 
exclude employees of ONHIR from coverage under OPM's 5 CFR part 
351 reduction in force regulations. The proposed language would 
make employees of ONHIR subject to summary termination in a 
reduction in force situation without regard to their retention 
standing (including veterans' preference entitlements).
    Section 202 would reference 5 U.S.C. 5597 (which covers 
buyouts in the Department of Defense (DOD) and which was 
supplemented by Public Law 108-136, DOD's 2003 legislation) in 
authorizing ONHIR to pay buyouts to its employees through 
December 31, 2009. Technically, this is confusing, since under 
section 108 of the bill, ONHIR would cease to exist on December 
31, 2008. Although the buyouts would be capped at $25,000, the 
gross amount of a maximum buyout would decline to $20,000 in CY 
2008, and then to $15,000 in CY 2009.
    In determining both employees' eligibility for buyouts and 
the computation of benefits, we believe the Office should 
continue to be covered by the buyout provisions of section 
1313(a) of the Homeland Security Act of 2002 (Public Law 107-
296), codified in 5 U.S.C. 3521 through 3525. We find no 
justification for the Office to be granted its own buyout 
authority or to depart from the buyout computation formula 
included in 5 U.S.C. 3523(b)(3).
    Section 203 would amend 5 U.S.C. 8336, 8339, 8412, and 8415 
to provide preferential retirement eligibility and computation 
provisions for employees of ONHIR. Under the Civil Service 
Retirement System (CSRS), individuals would be permitted to 
retire voluntarily at age 50 with 20 years of service, or at 
any age with 25 years of service. This authority is unnecessary 
since a voluntary early retirement authority could be provided 
administratively under existing law, if necessary and 
appropriate. If separated involuntarily, individuals would be 
permitted to retire at age 48 with 18 years of service, or at 
any age with 23 years of service. We object to this unwarranted 
preferential benefit applicable to only a small class of 
individuals whose situation is commonplace.
    The normal CSRS annuity computation allows 1\1/2\ percent 
for each of the first 5 years of service, 1\3/4\ percent for 
each of the next 5 years of service, and 2 percent for each 
year of service in excess of 10 years. Under this proposal, the 
CSRS annuity of an individual would be computed under the 
regular formula, except that service with ONHIR performed on 
and after January 1, 1985, would be credited at 2\1/2\ percent 
for the first 10 years of such service, and at 2 percent for 
such service over 10 years. As with the involuntary separation 
provision, we also object to this preferential benefit.
    Under the Federal Employees Retirement System (FERS), ONHIR 
employees would be permitted to retire voluntarily at age 50 
with 20 years of service, or at any age with 25 years of 
service. As with CSRS, this authority is unnecessary since a 
voluntary early retirement authority could be provided 
administratively under existing law.
    The normal FERS annuity computation provides 1 percent for 
each year of service (1.1 percent if the individual is at least 
age 62 with 20 years of service at retirement). A limited 
number of employees (such as law enforcement officers and 
firefighters) are entitled to 1.7 percent for each of the first 
20 years of service, and 1 percent for each year in excess of 
20.
    Under this proposal, FERS employees of ONHIR would have 
their benefits computed under a uniquely liberal formula. ONHIR 
service performed on and after January 1, 1985, would be 
credited at 2 percent for the first 10 years of such service, 
and at 1\1/2\ percent for such service over 10 years. There is 
no rationale for why this small group should receive a more 
liberal FERS computation than anyone else, including law 
enforcement officers, firefighters, and Members of Congress.
    Under both CSRS and FERS, the enhanced annuity computation 
would not be limited to those persons who are involuntarily 
separated. It would also be available to those who accept 
voluntary early retirement or who have worked a full career and 
would be eligible for regular optional retirement. It is not 
logical to provide special retirement provisions that would 
serve as an incentive to remain employed, while at the same 
time providing for voluntary separation incentive payments to 
induce early separations.
    Throughout Government, organizations are changing, with 
many employees not having the opportunity to complete their 
careers. There is nothing unique about this situation that 
would justify granting special annuity computation provisions 
that are not available to other employees whose employment 
terminate prior to completion of a full career. To provide such 
an unfunded windfall to this small group would be 
extraordinarily unfair to those other similarly situated 
employees who would not be provided such generous treatment. 
Moreover, not only are these provisions unjustified, there are 
no provisions made for funding the added costs of the higher 
annuities.
    In summary, while we take no position on the majority of 
the bill, we object to the Title II personnel provisions 
related to ONHIR. The Office of Management and Budget advises 
that there is no objection to the submission of this report 
from the standpoint of the Administration's program.
            Sincerely,
                                              Dan G. Blair,
                                                   Deputy Director.

                        Changes in Existing Law

    In compliance with subsection 12 of rule XXVI of the 
Standing Rules of the Senate, changes in existing law made by 
the bill S. 1003, as ordered 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):

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``Navajo-
Hopi Land Settlement Amendments of 2005''.
    (b) Table of Contents.--The table of contents of this Act 
is as follows:

Sec. 1. Short title; table of contents.

   TITLE I--AMENDMENTS TO THE NAVAJO-HOPI LAND SETTLEMENT ACT OF 1974

Sec. 101. Repeal of sections.
Sec. 102. Definitions; division of land.
Sec. 103. Joint ownership of minerals.
Sec. 104. Actions.
Sec. 105. Paiute Indian allotments.
Sec. 106. Partitioned and other designated land.
Sec. 107. Resettlement land for Navajo Tribe.
Sec. 108. Office of Navajo and Hopi Indian Relocation.
Sec. 109. Report.
Sec. 110. Relocation of households and members.
Sec. 111. Relocation housing.
Sec. 112. Payment for use of land.
Sec. 113. Effect of Act.
Sec. 114. Actions for accounting, fair value of grazing, and claims for 
          damages to land.
Sec. 115. Joint use.
Sec. 116. Religious ceremonies; piping of water.
Sec. 117. Access to religious shrines.
Sec. 118. Exclusion of payments from certain Federal determinations of 
          income.
Sec. 119. Authorization of exchange.
Sec. 120. Severability.
Sec. 121. Authorization of appropriations.
Sec. 122. Discretionary fund.
Sec. 123. Environmental impact; wilderness study; cancellation of leases 
          and permits.
Sec. 124. Attorney fees and court costs.
Sec. 125. Lobbying.
Sec. 126. Navajo Rehabilitation Trust Fund.
Sec. 127. Availability of funds for relocation assistance.

 TITLE II--PERSONNEL OF THE OFFICE OF NAVAJO AND HOPI INDIAN RELOCATION

Sec. 201. Retention preference.
Sec. 202. Separation pay.
Sec. 203. Federal retirement.

         TITLE III--TRANSFER OF FUNCTIONS AND SAVINGS PROVISIONS

Sec. 301. Definitions.
Sec. 302. Transfer of functions.
Sec. 303. Transfer and allocations of appropriations.
Sec. 304. Effect of Title.

          TITLE I--AMENDMENTS TO THE ACT OF DECEMBER 22, 1974


SEC. 101. REPEAL OF SECTIONS.

    (a) In General.--The Act of December 22, 1974 (25 U.S.C. 
640d et seq.), is amended in the first undesignated section by 
striking ``That, (a) within'' and all that follows through the 
end of the section.

[Sec. 640d-1

    [(a) Within thirty days after December 22, 1974, the 
Secretary shall communicate in writing with the tribal councils 
of the tribes directing the appointment of a negotiating team 
representing each tribe. Each negotiating team shall be 
composed of not more than five members to be certified by 
appropriate resolution of the respective tribal council. Each 
tribal council shall promptly fill any vacancies which may 
occur on its negotiating team. Notwithstanding any other 
provision of law, each negotiating team, when appointed and 
certified, shall have full authority to bind its tribe with 
respect to any other matter concerning the joint use area 
within the scope of this subchapter.
    [(b) In the event either or both of the tribal councils 
fail to select and certify a negotiating team within thirty 
days after the Secretary communicates with the tribal council 
under subsection (a) of this section or to select and certify a 
replacement member within thirty days of the occurrence of a 
vacancy, the provisions of section 640d-3(a) of this title 
shall become effective.
    [(c) Within fifteen days after formal certification of both 
negotiating teams to the Mediator, the Mediator shall schedule 
the first negotiating session at such time and place as he 
deems appropriate. The negotiating sessions, which shall be 
chaired by the Mediator, shall be held at such times and places 
as the Mediator deems appropriate. At such sessions, the 
Mediator may, if he deems it appropriate, put forward his own 
suggestions for procedure, the agenda, and the resolution of 
the issues in controversy.
    [(d) In the event either negotiating team fails to attend 
two consecutive sessions or, in the opinion of the Mediator, 
either negotiating team fails to bargain in good faith or an 
impasse is reached, the provisions of section 640d-3(a) of this 
title shall become effective.
    [(e) In the event of a disagreement within a negotiating 
team the majority of the members of the team shall prevail and 
act on behalf of the team unless the resolution of the tribal 
council certifying the team specifically provides otherwise.

[Sec. 640d-2

    [(a) If, within one hundred and eighty days after the first 
session scheduled by the Mediator under section 640d-1(c) of 
this title, full agreement is reached, such agreement shall be 
put in such form as the Mediator determines best expresses the 
intent of the tribes and shall then be submitted to the 
Secretary and the Attorney General of the United States for 
their comments as they relate to the interest of the United 
States in the proceedings. These comments are to be submitted 
to the Mediator and the negotiating teams within thirty days. 
The negotiating teams and the Mediator shall then consider the 
comments and, if agreement can still be reached on terms 
acceptable to the negotiating teams and the Mediator within 
sixty days of receipt by him of the comments, the agreement 
shall be put in final written form and shall be signed by the 
members of the negotiating teams and the Mediator. The Mediator 
shall then cause the agreement to be entered into the records 
of the supplemental proceedings in the Healing case. The 
provisions of the agreement shall be reviewed by the District 
Court, modified where necessary, and put into effect 
immediately thereafter.
    [(b) If, within the one hundred and eighty day period 
referred to in subsection (a) of this section, a partial 
agreement has been reached between the tribes and they wish 
such partial agreement to go into effect, they shall follow the 
procedure set forth in subsection (a) of this section. The 
partial agreement shall then be considered by the Mediator in 
preparing his report, and the District Court in making a final 
adjudication, pursuant to section 640d-3 of this title.
    [(c) For the purpose of this section, the negotiating teams 
may make any provision in the agreement or partial agreement 
not inconsistent with existing law. No such agreement or any 
provision in it shall result in a taking by the United States 
of private property compensable under the Fifth Amendment of 
the Constitution of the United States.

[25 U.S.C. Sec. 640d-3

    [If the negotiating teams fail to reach full agreement 
within the time period allowed in section 640d-2(a) of this 
title or if one or both of the tribes are in default under the 
provisions of section 640d-1(b) or (d) of this title, the 
Mediator, within ninety days thereafter, shall prepare and 
submit to the District Court a report containing his 
recommendations for the settlement of the interests and rights 
set out in section 640d(a) of this title which shall be most 
reasonable and equitable in light of the law and circumstances 
and consistent with the provisions of this subchapter. 
Following the District Court's review of the report and 
recommendations (which are not binding thereon) and any further 
proceedings which the District Court may schedule, the District 
Court is authorized to make a final adjudication, including 
partition of the joint use area, and enter the judgments in the 
supplemental proceedings in the Healing case.

[25 U.S.C. Sec. 640d-4

    [(a) For the purpose of facilitating an agreement pursuant 
to section 640d-2 of this title or preparing a report pursuant 
to section 640d-3 of this title, the Mediator is authorized--
          [(1) notwithstanding the provisions of section 211 of 
        this title, to recommend that, subject to the consent 
        of the Secretary, there be purchased or otherwise 
        acquired additional lands for the benefit of either 
        tribe from the funds of either tribe or funds under any 
        other authority of law;
          [(2) to recommend that, subject to the consent of the 
        Secretary, there be undertaken a program of restoration 
        of lands lying within the joint use area, employing for 
        such purpose funds authorized by this subchapter, funds 
        of either tribe, or funds under any other authority of 
        law;
          [(3) to recommend that, subject to the consent of the 
        Secretary, there be undertaken a program for relocation 
        of members of one tribe from lands which may be 
        partitioned to the other tribe in the joint use area;
          [(4) Repealed. Pub. L. 93-531, Sec. 30(a), as added 
        Pub. L. 96-305, Sec. 11, July 8, 1980, 94 Stat. 934.
          [(5) to make any other recommendations as are in 
        conformity with this subchapter and the Healing case to 
        facilitate a settlement.
    [(b) The authorization contained in subsection (a) of this 
section shall be discretionary and shall not be construed to 
represent any directive of the Congress.]

Sec. 640d-5.

SECTION 1. DEFINITIONS.

    In this Act:
          (1) District court.--The term ``District Court'' 
        means the United States District Court for the District 
        of Arizona.
          (2) Secretary.--The term ``Secretary'' means the 
        Secretary of the Interior.
          (3) Tribe.--The term ``Tribe'' means--
                  (A) the Navajo Indian Tribe; and
                  (B) the Hopi Indian Tribe.

SEC. 2. DIVISION OF LAND.

    (a) Division.--
          (1) In general.--The land located within the 
        boundaries of the reservation established by Executive 
        Order on December 16, 1982, shall be divided into 
        parcels of equal acreage and quality--
                  (A) to the maximum extent practicable; and
                  (B) in accordance with the final order issued 
                by the District Court on August 30, 1978 
                (providing for the partition of the surface 
                rights and interest of the tribes).
          (2) Valuation of parcels.--For the purpose of 
        calculating the value of a parcel produced by a 
        division under paragraph (1), the Secretary shall--
                  (A) take into account any improvement on the 
                land; and
                  (B) consider the grazing capacity of the land 
                to be fully restored.
          (3) Compensation of tribes.--If the partition under 
        paragraph (1) result in parcels of unequal value, as 
        determined by the Secretary, the tribe that receives 
        the more valuable parcel shall pay to the other tribe 
        compensation in an amount equal to the difference in 
        the values of the parcels, as determined by the 
        Secretary.
          (4) Compensation of federal government.--If the 
        District Court determines that the failure of the 
        Federal Government to fulfill an obligation of the 
        Government resulted in the decrease in value of a 
        parcel under paragraph (1), the Government shall pay to 
        the recipient of the parcel compensation in an amount 
        equal to the difference between--
                  (A) the decreased value of the parcel; and
                  (B) the value of the fully restored parcel.
    [(g) Any]
    (b) License Fees and Rents._Any claim the Hopi Tribe may 
have against the Navajo Tribe for an accounting of all sums 
collected by the Navajo Tribe since September 17, 1957, as 
trader license fees or commissions, lease rental or proceeds, 
or other similar charges for doing business or for damages in 
the use of lands within the joint use area, shall be for a one-
half share in such sums.
    [(h) Any] (c) Grazing and Agricultural Use._Any claim the 
Hopi Tribe may have against the Navajo Tribe for the 
determination and recovery of the fair value of the grazing and 
agricultural use of the lands within the joint use area by the 
Navajo Tribe and its individual members, since September 28, 
1962, shall be for one-half of such value.
    [Joint ownership and management of coal, oil, gas and other 
minerals within or underlying partitioned lands; division of 
proceeds]

Sec. 640d-6.

SEC. 3. JOINT OWNERSHIP OF MINERALS.

    (a) In General.--Partition of the surface of the lands of 
the Joint Use Area shall not affect the Joint ownership status 
of the coal, oil, gas and all other minerals within or 
underlying such lands.
    (b) Joint Management.--All such coal, oil, gas and other 
minerals within or underlying such lands shall be managed 
jointly by the two tribes, subject to supervision and approval 
by the Secretary as otherwise required by law, and the proceeds 
therefrom shall be divided between the tribes, share and share 
alike. [Determination of tribal rights and interests in land]

Sec. 640d-7.

SEC. 4. ACTIONS.

    [(a) Actions in District Court._Either tribe acting through 
the Chairman of its Tribal Council for and on behalf of the 
tribe, is each hereby authorized to commence or defend in the 
District Court an action Against the other tribe and any other 
tribe of Indians claiming any interests in or to the area 
described in the Act of June 14, 1934, Except the reservations 
established by the Executive Or of December 16, 1882, for the 
purpose of determining the rights and interests of the tribes 
in and to such lands and quieting Title thereto in the tribes.
    [(b) Lands, if any] (b) Allocation of Land._
          (1) Navajo reservation._Any land in which the Navajo 
        Tribe or Navajo individuals are determined by the 
        District Court to have the exclusive interest shall 
        continue to be a part of the Navajo Reservation. [Lands 
        if any]
          (2) Hopi reservation._Any land in which the Hopi 
        Tribe, including any Hopi Village or Clan thereof, or 
        Hopi individuals, are determined by the District Court 
        to have the exclusive interest shall thereafter be a 
        reservation for the Hopi Tribe.
          (3) Joint and undivided interests._Any land in which 
        the Navajo and Hopi Tribes or Navajo or Hopi 
        Individuals are determined to have a joint or undivided 
        interest shall be partitioned by the District Court on 
        the Basis of fairness and equity and the area so 
        partitioned shall be retained in the Navajo Reservation 
        or added to the Hopi reservation, respectively.
    [(c)(1) Either] (c) Exchange of Land._(1) In general._
Either as a part of or in a proceeding supplementary to the 
action authorized in subsection (a) of this section, either 
tribe, through the chairman of its tribal council for and on 
behalf of the tribe, including all villages, clans, and 
individual members thereof, may prosecute or defend an action 
for the types of relief, including interest, specified in 
[section 18] section 14 of this title, including all 
subsections thereof, against the other tribe, through its 
tribal chairman in a like representative capacity, and against 
the United States as to the types of recovery specified in 
subsection (a)(3) of [section 18] section 14 of this title and 
subject to the same provisions as contained in said subsection, 
such action to apply to the lands in issue in the reservation 
established by the Act of June 14, 1934 (48 Stat. 960).
    [(2) In the event] (2) Interests of tribes._If the Hopi 
Tribe or Navajo Tribe is determined to have any interest in the 
lands in issue, the right of either tribe to recover hereunder 
shall be based upon that percentage of the total sums 
collected, use made, waste committed, and other amounts of 
recovery, which is equal to the percentage of lands in issue in 
which either tribe is determined to have such interest.
    [(3) Neither] (3) Defense._Neither laches nor the statute 
of limitations shall constitute a defense to such proceedings 
if they are either prosecuted as a part of the action 
authorized by this section or in a proceeding supplemental 
thereto, if instituted not later than 24 months following a 
final order of partition and exhaustion of appeals in an action 
filed pursuant to this section.
    [(d) Nothing] (d) Effect of Section._Nothing in this 
section shall be deemed to be a Congressional determination of 
the merits of the conflicting claims to the lands that are 
subject to adjudication pursuant to this section, or to affect 
the liability of the United States, if any, under litigation 
now pending before the Indian Claims Commission.
    [(e) The] (e) Payment of Legal Fees, Court Costs, and Other 
Expenses._The Secretary of the Interior is authorized to pay 
any or all appropriate legal fees, court costs, and other 
related expenses arising out of, or in connection with, the 
commencing of, or defending against, any action brought by the 
Navajo, San Juan Southern Paiute or Hopi Tribe under this 
section.
    [(f) * * *
          [(1) Any funds made available for the San Juan 
        Souther Paiute Tribe to pay for attorney's fees shall 
        be paid directly to the tribe's attorneys of record 
        until such tribe is acknowledged as an Indian tribe by 
        the United States; Provided, That the tribe's 
        eligibility for such payments shall cease once a 
        decision by the Secretary of the Interior declining to 
        acknowledge such tribe becomes final and no longer 
        appealable.
          [(2) Nothing in this subsection shall be interpreted 
        as a congressional acknowledgment of the San Juan 
        Southern Paiute as an Indian tribe or as affecting in 
        any way the San Juan Southern Paiute Tribe's Petition 
        for Recognition currently pending with the Secretary of 
        the Interior
          [(3) There is hereby authorized to be appropriated 
        not to exceed $250,000 to pay for the legal expenses 
        incurred by the Southern Paiute Tribe on legal action 
        arising under this section prior to November 16, 1988]

Sec. 640d-8

    [Sec. 9. Notwithstanding]

SEC. 5. PAIUTE INDIAN ALLOTMENTS.

    Notwithstanding any other provision of this subchapter, the 
Secretary is authorized to allot in severalty to individual 
Paiute Indians, not now members of the Navajo Tribe, who are 
located within the area described in the Act of June 14, 1934 
(48 Stat. 960), and who were located within such area, or are 
direct descendants of Paiute Indians who were located within 
such area, on the date of such Act, land in quantities as 
specified in section 331 of this title, and patents shall be 
issued to them for such lands having the legal effect and 
declaring that the United States holds such land in trust for 
the sole use and benefit of each allottee and, following his 
death, of his heirs according to the laws of the State of 
Arizona.

Sec. 640d-9

    [Sec. 10. (a) Subject]

SEC. 6. PARTITIONED AND OTHER DESIGNATED LAND.

    [(a) Lands to be held in trust for Navajo Tribe; exception]
    (a) Navajo Trust Land._Subject to the provisions of 
[section 9 and subsection (a) of section 17] sections 5 and 
13(a) of this title, any lands partitioned to the Navajo Tribe 
pursuant to sections 640d-2 and 640d-3 of this title and the 
lands described in the Act of June 14, 1934 (48 Stat. 960), 
except the lands as described in section 640d-7 of this title, 
shall be held in trust by the United States exclusively for the 
Navajo Tribe and as a part of the Navajo Reservation.
    [(b)] (b) Hopi Trust Land._Subject to the provisions of 
[section 9 and subsection 9(a) of section 17] sections 5 and 
13(a) of this title, any lands partitioned to the Hopi Tribe 
pursuant to [sections 3 or 4] section 2 of this title and the 
lands as described in [section 8] section 4 of this title shall 
be held in trust by the United States exclusively for the Hopi 
Tribe and as a part of the Hopi Reservation.
    [(c)] (c) Protection of Rights and Property._The Secretary 
shall take such action as may be necessary in order to assure 
the protection, until relocation, of the rights and property of 
individuals subject to relocation pursuant to this subchapter, 
or any judgment of partition pursuant to this Act.
    [(d)] (d) Protection of Benefits and Services._With respect 
to any individual subject to relocation, the Secretary shall 
take such action as may be necessary to assure that such 
individuals are not deprived of benefits or services by reason 
of their status as an individual subject to relocation.
    [(e)(1) Lands] (e) Tribal Jurisdiction Over Partitioned 
Land._(1) In general._Land partitioned pursuant to this 
subchapter, whether or not the partition order is subject to 
appeal, shall be subject to the jurisdiction of the tribe to 
whom partitioned and the laws of such tribe shall apply to such 
partitioned lands under the following schedule:
          (A) Effective 90 days after July 8, 1980, all 
        conservation practices, including grazing control and 
        range restoration activities, shall be coordinated and 
        executed with the concurrence of the tribe to whom the 
        particular lands in question have been partitioned, and 
        all such grazing and range restoration matters on the 
        Navajo Reservation lands shall be administered by the 
        Bureau of Indian Affairs Navajo Area Office and on the 
        Hopi Reservation lands by the Bureau of Indian Affairs 
        Phoenix Area Office, under applicable laws and 
        regulations.
          (B) Notwithstanding any provision of law to the 
        contrary, each tribe shall have such jurisdiction and 
        authority over any lands partitioned to it and all 
        persons located thereon, not in conflict with the laws 
        and regulations referred to in paragraph (A) above, to 
        the same extent as is applicable to those other 
        portions of its reservation. Such jurisdiction and 
        authority over partitioned lands shall become effective 
        April 18, 1981. [The provisions]
    (2) Responsibility of secretary._The provisions of this 
subsection shall be subject to the responsibility of the 
Secretary to protect the rights and property of [life tenants 
and] persons awaiting relocation as provided in subsections (c) 
and (d) of this section.
    (f) Development of Lands in Litigation; Exception.--
          (1) Any development of lands in litigation pursuant 
        to section 640d-7 of this title and further defined as 
        ``that portion of the Navajo Reservation lying west of 
        the Executive Order Reservation of 1882 and bounded on 
        the north and south by westerly extensions, to the 
        reservation line, of the northern and southern 
        boundaries of said Executive Order Reservation,'' shall 
        be carried out only upon the written consent of each 
        tribe except for the limited areas around the village 
        of Moenkopi and around Tuba City. Each such area has 
        been heretofore designated by the Secretary. 
        ``Development'' as used herein shall mean any new 
        construction or improvement to the property and further 
        includes public work projects, power and water lines, 
        public agency improvements, and associated rights-of-
        way.
          (2) Each Indian tribe which receives a written 
        request for the consent of the Indian tribe to a 
        particular improvement, construction, or other 
        development on the lands to which paragraph (1) applies 
        shall respond in writing to such request by no later 
        than the date that is 30 days after the date on which 
        the Indian tribe receives the request. If the Indian 
        tribe refuse to consent to the improvement, 
        construction, or other development, the response shall 
        include the reasons why consent is being refused.
          (3)(A) Paragraph (1) shall not apply to any 
        improvement, construction, or other development if--
                  (I) such improvement, construction, or 
                development does not involve new housing 
                construction, and
                          (ii) after the Navajo Tribe or Hopi 
                        Tribe has refused to consent to such 
                        improvement, construction, or 
                        development (or after the close of the 
                        30-day period described in paragraph 
                        (2), if the Indian tribe does not 
                        respond within such period in writing 
                        to a written request for such consent), 
                        the Secretary of the Interior 
                        determines that such improvement, 
                        construction, or development is 
                        necessary for the health or safety of 
                        the Navajo Tribe, the Hopi Tribe, or 
                        any individual who is a member of 
                        either tribe.
          (B) If a written request for a determination 
        described in subparagraph (A)(ii) is submitted to the 
        Secretary of the Interior after the Navajo Tribe or 
        Hopi Tribe has refused to consent to any improvement, 
        construction, or development (or after the close of the 
        30-day period described in paragraph (2), if the Indian 
        tribe does not respond within such period in writing to 
        a written request for such consent), the Secretary 
        shall, by no later than the date that is 45 days after 
        the date on which such request is submitted to the 
        Secretary, determine whether such improvement, 
        construction, or development is necessary for the 
        health or safety of the Navajo Tribe, the Hopi Tribe, 
        or any individual who is a member of either Tribe.
          (C) Any development that is undertaken pursuant to 
        this section shall be without prejudice to the rights 
        of the parties in the civil action pending before the 
        United States District Court for the District of 
        Arizona commenced pursuant to section 640d-7 of this 
        title, as amended.

Sec. 640d-10(a)

    [Sec. 11. (a) The Secretary]

SEC. 7. RESETTLEMENT OF LAND FOR NAVAJO TRIBE.

    (a) Transfer of Land.--(1) In general.--The Secretary is 
authorized and directed to--
          [(1) transfer not to exceed two hundred and fifty 
        thousands acres of lands] (A) transfer not more than 
        250,000 acres of land under the jurisdiction of the 
        Bureau of Land Management within the State of Arizona 
        and New Mexico to the Navajo [Tribe: Provided, That, in 
        order to facilitate such transfer, the Secretary is 
        authorized to exchange such lands for State or private 
        lands of equal value or, if they are not equal, the 
        values shall be equalized by the payment of money to 
        the grantor or to the Secretary as the circumstances 
        require so long as payment does not exceed 25 per 
        centum of the total value of the lands transferred out 
        of Federal ownership. The Secretary shall try to reduce 
        the payment to as small an amount as possible.] Tribe; 
        and
          [(2) on behalf] (B) on behalf of the United States, 
        accept title to not to exceed one hundred and fifty 
        thousand acres of private lands acquired by the Navajo 
        Tribe. [Title thereto shall be taken in the name of the 
        United States in trust for the benefit of the Navajo 
        Tribe as a part of the Navajo Reservation.]
    (2) Exchange of land.--
          (A) In general.--In order to facilitate a transfer of 
        land under paragraph (1)(A), the Secretary may exchange 
        land described in paragraph (1)(A) for State or private 
        land of equal value.
          (B) Unequal value.--If the State or private land 
        described in subparagraph (A) is of unequal value to 
        the land described in paragraph (1)(A), the recipient 
        of the land that is of greater value shall pay to the 
        other party to the exchange under subparagraph (A) 
        compensation in an amount not to exceed the lesser of--
                  (i) the difference between the values of the 
                land exchanged; or
                  (ii) the amount that is 25 percent of the 
                total value of the land transferred from the 
                Secretary to the Navajo Tribe.
          (C) Responsibility of secretary.--The Secretary shall 
        ensure that the amount of payment under subparagraph 
        (B) is as minimal as practicable.
    (3) Title to land accepted.--The Secretary shall accept 
title to land under paragraph (1)(B) on behalf of the United 
States in trust for the benefit of the Navajo Tribe as a part 
of the Navajo reservation.
[Subject to the provisions of the following sentences of this 
subsection, all rights,]
    (4) Requirement of transfer.--
          (A) In general.--Subject to this paragraph, all 
        rights, title and interests of the United States in the 
        lands described in [paragraph (1)] paragraph (1)(A), 
        including such interests the United States as lessor 
        has in such lands under the Mineral Leasing Act of 
        1920, as amended (30 U.S.C.A. Sec. 181 et seq.), will, 
        subject to existing leasehold interests, be transferred 
        without cost to the Navajo Tribe and title thereto 
        shall be taken by the United States in trust for the 
        benefit of the Navajo Tribe as a part of the Navajo 
        Reservation. [So long as]
          (B) Coal lease applications.--
                  (i) In general.--If selected lands coincide 
                with pending noncompetitive coal lease 
                applications under the Mineral Leasing Act of 
                1920, as amended (30 U.S.C.A. Sec. 181 et 
                seq.), the Secretary may not transfer any 
                United States interests in such lands until the 
                noncompetitive coal lease applications have 
                been fully adjudicated. [If such adjudication]
                  (ii) Issuance of leases.--If an adjudication 
                under clause (i) results in issuance of Federal 
                coal leases to the applicants, such transfer 
                shall be subject to such leases.[The 
                leaseholders rights and interests]
                  (iii) Rights and interests of leaseholders.-- 
                The rights and interests of a holder of a lease 
                described in clause (i) in such coal leases 
                will in no way be diminished by the transfer of 
                the rights, title and interests of the United 
                States in such lands to the Navajo Tribe. [If 
                any]
          (C) Claims under mining law.--If any selected lands 
        are subject to valid claims located under the Mining 
        Law of 1872 the transfer of the selected lands may be 
        made subject to those claims.
          [(2) Those]
    (5) State rights.--
          (A) In general.--The interests in lands acquired in 
        the State of New Mexico by the Navajo Tribe pursuant to 
        [subsection 2 of this section] paragraph (1)(B) shall 
        be subject to the right of the State of New Mexico to 
        receive the same value from any sales, bonuses, 
        rentals, royalties and interest charges from the 
        conveyance, sale, lease, development, and production of 
        coal as would have been received had the subsurface 
        interest in such lands remained with the United States 
        and been leased pursuant to the Mineral Lands Leasing 
        Act of 1920, as amended (30 U.S.C.A. Sec. 181 et seq.), 
        or any successor Act; or otherwise developed. [The]
          (B) State interests.--The State's interest shall be 
        accounted for in the same manner as it would have been 
        if a lease had issued pursuant to the Mineral Lands 
        Leasing Act of 1920, as amended (30 U.S.C.A. Sec. 181 
        et seq.).

Sec. 640d-10(b)

    [(b) A border] (b) Proximity of Land To Be Transferred or 
Acquired.--A border of any parcel of land so transferred or 
acquired shall be within eighteen miles of the present boundary 
of the Navajo Reservation: Provided, That, except as limited by 
subsection (g) of this section, Bureau of Land Management lands 
anywhere within the States of Arizona and New Mexico may be 
used for the purpose of exchanging for lands within eighteen 
miles of the present boundary of the reservation.

Sec. 640d-10(c)

    [(c) Lands] (c) Selection of Land To Be Transferred or 
Acquired.--Land to be so transferred or acquired shall, for a 
period of three years after July 8, 1980, be selected by the 
Navajo Tribe after consultation with the Commissioner: 
Provided, That, at the end of such period, the Commissioner 
shall have the authority to select such lands after 
consultation with the Navajo Tribe: Provided further, That not 
to exceed thirty-five thousand acres of lands so transferred or 
acquired shall be selected within the State of New Mexico[.] : 
Provided further, That the authority of the Commissioner to 
select lands under this subsection shall terminate on September 
30, 2008.

Sec. 640d-10(d)

    [(d) The] (d) Reports.--The Commissioner, in consultation 
with the Secretary, shall within sixty days following the first 
year of enactment of this subsection report to the House 
Committee on Interior and Insular Affairs and the Senate Select 
Committee on Indian Affairs, on the progress of the land 
transfer program authorized in subsection (a) of this section. 
Sixty days following the second year of enactment of this 
subsection the Commissioner, in consultation with the 
Secretary, shall submit a report to the House Committee on 
Interior and Insular Affairs and the Senate Select Committee on 
Indian Affairs giving the status of the land transfer program 
authorized in subsection (a) of this section, making any 
recommendations that the Commissioner deems necessary to 
complete the land transfer program.

Sec. 640d-10(e)

    [(e) Payments] (e) Payments.--Payments being made to any 
State or local government pursuant to the provisions of chapter 
69 of Title 31, on any lands transferred pursuant to subsection 
(a)(1) of this section shall continue to be paid as if such 
transfer had not occurred.

Sec. 640d-10(f)

    [(f)(1) For] (f) Acquisition of Title to Surface and 
Subsurface Interests.--
          (1) In general.--For a period of three years after 
        July 8, 1980, the Secretary shall not accept title to 
        lands acquired pursuant to subsection (a)(2) of this 
        section unless fee title to both surface and subsurface 
        has been acquired or the owner of the subsurface 
        interest consents to the acceptance of the surface 
        interest in trust by the Secretary. [(2) If]
          (2) Public notice; Report.--If, ninety days prior to 
        the expiration of such three year period, the full 
        entitlement of private lands has not been acquired by 
        the Navajo Tribe and accepted by the Secretary in trust 
        for the Navajo Tribe under the restrictions of 
        paragraph (1) of this subsection, the Commissioner, 
        after public notice, shall, within thirty days, make a 
        report thereon to the House Committee on Interior and 
        Insular Affairs and the Senate Select Committee on 
        Indian Affairs.
          [(3) In any case where] (3) Rights of subsurface 
        owners.--If the Secretary accepts, in trust, title to 
        the surface of lands acquired pursuant to subsection 
        (a)(2) of this section where the subsurface interest is 
        owned by third parties, the trust status of such 
        surface ownership and the inclusion of the land within 
        the Navajo Reservation shall not impair any existing 
        right of the subsurface owner to develop the subsurface 
        interest and to have access to the surface for the 
        purpose of such development.

Sec. 640d-10(g)

    [(g) No] (g) Land Not Available for Transfer.--No public 
lands lying north and west of the Colorado River in the State 
of Arizona shall be available for transfer under this section.

Sec. 640d-10(h)

    [(h) The lands] (h) Administration of Land Transferred or 
Acquired.--
          (1) In general.--The land transferred or acquired 
        pursuant to this section shall be administered by the 
        Commissioner until relocation under the Commission's 
        [FN4] plan is complete and such lands shall be used 
        solely for the benefit of Navajo families residing on 
        Hopi-partitioned lands as of December 22, 1974: 
        Provided, That the sole authority for final planning 
        decisions regarding the development of lands acquired 
        pursuant to this subchapter shall rest with the 
        Commissioner until such time as the Commissioner has 
        discharged his statutory responsibility under this 
        subchapter.
          (2) Relocation.--
                  (A) In general.--In order to facilitate 
                relocation of a member of a Tribe, the 
                Commissioner may grant a homesite lease on land 
                acquired under this section to a member of the 
                extended family of a Navajo Indian who is 
                certified eligible to receive benefits under 
                this Act.
                  (B) Exception.--The Commissioner may not use 
                any funds available to the Commissioner to 
                carry out this Act to provide housing to an 
                extended family member described in 
                subparagraph (A).

Sec. 640d-10(i)

    [(i) The] (i) Negotiations Regarding Land Exchanges and 
Leases.--The Commissioner shall have authority to enter into 
negotiations with the Navajo and Hopi Tribes with a view to 
arranging and carrying out land exchanges or leases, or both, 
between such tribes; and lands which may be acquired or 
transferred pursuant to this section may, with the approval of 
the Commissioner, be included in any land exchange between the 
tribes authorized under [section 23] section 19 of this title.

Sec. 640d-11

    [Sec. 12. (a) There is hereby]

SEC. 8. OFFICE OF NAVAJO AND HOPI INDIAN RELOCATION.

    (a) Establishment.--There is established as an independent 
entity in the executive branch the Office of Navajo and Hopi 
Indian Relocation which shall be under the direction of the 
Commissioner on Navajo and Hopi Relocation (hereinafter in this 
subchapter referred to as the ``Commissioner'').
    [The] (b) Appointment.--The Commissioner shall be appointed 
by the President by and with the advice and consent of the 
Senate.
          (2) The term of office of the Commissioner shall be 2 
        years. An individual may be appointed Commissioner for 
        more than one term. The Commissioner serving at the end 
        of a term shall continue to serve until his or her 
        successor has been confirmed in accordance with 
        paragraph (1)of this subsection.
          (3) The Commissioner shall be a full-time employee of 
        the United States, and shall be compensated at the rate 
        of basic pay payable for level IV of the Executive 
        Schedule.
    [(c)(1)(A) Except] (c) Continuation of Powers._
          (1) Powers and duties of commissioner; existing 
        funds._
                  (A) Powers and duties of commissioner._Except 
                as otherwise provided by the Navajo and Hopi 
                Indian Relocation Amendments of 1988, the 
                Commissioner shall have all the powers and be 
                responsible for all the duties that the Navajo 
                and Hopi Indian Relocation Commission had 
                before November 16, 1988.
                  [(B) All] (B) Existing funds._All funds 
                appropriated to the Navajo and Hopi Indian 
                Relocation Commission before the date on which 
                the first Commissioner on Navajo and Hopi 
                Indian Relocation is confirmed by the Senate 
                that have not been expended on such date shall 
                become available to the Office of Navajo and 
                Hopi Indian Relocation on such date and shall 
                remain available without fiscal year 
                limitation. [There are hereby]
          (2) Transfer of powers._There are transferred to the 
        Commissioner, on January 31, 1989--
                  (A) all powers and duties of the Bureau of 
                Indian Affairs derived from Public Law 99-190 
                (99 Stat. at 1236) that relate to the 
                relocation of members of the Navajo Tribe from 
                lands partitioned to the Hopi Tribe, and
                  (B) all funds appropriated for activities 
                relating to such relocation pursuant to Public 
                Law 99-190 (99 Stat. at 1236): Provided, That 
                such funds shall be used by the Commissioner 
                for the purpose for which such funds were 
                appropriated to the Bureau of Indian Affairs 
                [FN1]: Provided further, That for 
                administrative purposes such funds shall be 
                maintained in a separate account.
    [(d)(1) Subject] (d) Powers of Commissioner._
          (1) In general._Subject to such rules and regulations 
        as may be adopted by the Office of Navajo and Hopi 
        Indian Relocation, the Commissioner shall have the 
        power to--
                  (A) appoint and fix the compensation of such 
                staff and personnel as the Commissioner deems 
                necessary in accordance with the provisions of 
                Title 5 governing appointments in the 
                competitive service, but at rates not in excess 
                of a position classified above a GS-15 of the 
                General Schedule under section 5108 of such 
                title; and
                  (B) procure temporary and intermittent 
                services to the same extent as is authorized by 
                section 3109 of title 5, but at rates not to 
                exceed $200 a day for individuals.
          [(2) The] (2) Contracts._The authority of the 
        Commissioner to enter into contracts for the provision 
        of legal services for the Commissioner or for the 
        Office of Navajo and Hopi Indian Relocation shall be 
        subject to the availability of funds provided for such 
        purpose by appropriations Acts.
          [(3) There] (3) Authorization of appropriations._
        There are authorized to be appropriated for each fiscal 
        year $100,000 to fund contracts described in paragraph 
        (2).
    [(e)(1)] (e) Administration._
          (1) Administrative, fiscal, and housekeeping 
        services._
                  (A) In general._The Commissioner is 
                authorized to provide for the administrative, 
                fiscal, and housekeeping services of the Office 
                of Navajo and Hopi Indian Relocation and is 
                authorized to call upon any department or 
                agency of the United States to assist him in 
                implementing the relocation plan, except that 
                the control over and responsibility for 
                completing relocation shall remain in the 
                Commissioner. [In any]
                  (B) Assistance from departments and 
                agencies._In any case in which the Office calls 
                upon any such department or agency for 
                assistance under this section, such department 
                or agency shall provide reasonable assistance 
                so requested.
          [(2) On] (2) Failure to provide assistance._On 
        failure of any agency to provide reasonable assistance 
        as required under paragraph (1) of this subsection, the 
        Commissioner shall report such failure to the Congress.
    [f] (f) Termination._
          (1) In general._The Office of Navajo and Hopi Indian 
        Relocation shall terminate on September 30, 2008.
          (2) Transfer of office duties.--On the date of 
        termination of the Office, any duty of the Office that 
        has not been carried out, as determined in accordance 
        with this Act, shall be transferred to the Secretary in 
        accordance with title III of the Navajo-Hopi Land 
        Settlement Amendments of 2005.
    (g) Office of Relocation.--
          (1) Establishment.--Effective on October 1, 2006, 
        there is established in the Department of the Interior 
        an Office of Relocation.
          (2) Duties.--The Secretary, acting through the Office 
        of Relocation, shall carry out the duties of the Office 
        of Navajo and Hopi Indian Relocation that are 
        transferred to the Secretary in accordance with title 
        III of the Navajo-Hopi Land Settlement Amendments of 
        2005.
          (3) Termination.--The Office of Relocation shall 
        terminate on the date on which the Secretary determines 
        that the duties of the Office have been carried out.

Sec. 640d-12

    [Sec. 13. (a) By no]

SEC. 9. REPORT.

    (a) In General._Not later than the date that is 6 months 
after the date on which the first Commissioner is confirmed by 
the Senate, the Commissioner shall prepare and submit to the 
Congress a report concerning the relocation of households and 
members thereof of each tribe and their personal property, 
including livestock, from lands partitioned to the other tribe 
pursuant to this subchapter.
    [(b) The] (b) Inclusions._The report required under 
subsection (a) of this section shall [contain, among other 
matters, the following:] include--
          (1) the names of all members of the Navajo Tribe who 
        reside within the areas partitioned to the Hopi Tribe 
        and the names of all members of the Hopi Tribe who 
        reside within the areas partitioned to the Navajo 
        Tribe;
          (2) the names of all other members of the Navajo 
        Tribe, and other members of the Hopi Tribe, who are 
        eligible for benefits provided under this subchapter 
        and who have not received all the benefits for which 
        such members are eligible under this subchapter; and
          (3) the fair market value of the habitations and 
        improvements owned by the heads of households 
        identified by the Commissioner is [FN1] being among the 
        persons named in clause (1) of this subsection.

Sec. 640d-13

    [Sec. 14. (a)]

SEC. 10. RELOCATION OF HOUSEHOLD AND MEMBERS.

    [Consistent] (a) Authorization._
          (1) In general._Consistent with [section 8] section 4 
        of this title and the order of the District Court 
        issued pursuant to [section 3 or 4] section 2 of this 
        title, the Commissioner is authorized and directed to 
        relocate pursuant to [section 8] section 4 of this 
        title and such order all households and members thereof 
        and their personal property, including livestock, from 
        any lands partitioned to the tribe of which they are 
        not members. [The relocation shall take place in 
        accordance with the relocation plan and shall be 
        completed by the end of five years from the date on 
        which the relocation plan takes effect.]
          (2) Settlements of navajo._No further settlement of 
        Navajo individuals on the lands partitioned to the Hopi 
        Tribe pursuant to this subchapter or on the Hopi 
        Reservation shall be permitted unless advance written 
        approval of the Hopi Tribe is obtained. [No further]
          (3) Settlements of hopi._No further settlement of 
        Hopi individuals on the lands partitioned to the Navajo 
        Tribe pursuant to this subchapter or on the Navajo 
        Reservation shall be permitted unless advance written 
        approval of the Navajo Tribe is obtained. [No 
        individual]
          (4) Grazing._No individual shall hereafter be allowed 
        to increase the number of livestock he grazes on any 
        area partitioned pursuant to this subchapter to the 
        tribe of which he is not a member, nor shall he retain 
        any grazing rights in any such area subsequent to his 
        relocation therefrom.
    [(b) In addition] (b) Additional Payments to Heads of 
Households._In addition to the payments made pursuant to 
[section 15] section 11 of this title, the Commissioner shall 
make payments to heads of households identified in the report 
prepared pursuant to [section 13] section 9 of this title upon 
the date of relocation of such households, as determined by the 
Commissioner, in accordance with the following schedule:
          (1) the sum of $5,000 to each head of a household 
        who, prior to the expiration of one year after the 
        effective date of the relocation plan, contracts with 
        the Commissioner to relocate;
          (2) the sum of $4,000 to each head of a household who 
        is not eligible for the payment provided for in clause 
        (1) of this subsection but who, prior to the expiration 
        of two years after the effective date of the relocation 
        plan, contracts with the Commissioner to relocate;
          (3) the sum of $3,000 to each head of a household who 
        is not eligible for the payments provided for in clause 
        (1) or (2) of this subsection but who, prior to the 
        expiration of three years after the effective date of 
        the relocation plan, contracts with the Commissioner to 
        relocate; and
          (4) the sum of $2,000 to each head of a household who 
        is not eligible for the payments provided for in clause 
        (1), (2), or (3) of this subsection but who, prior to 
        the expiration of four years after the effective date 
        of the relocation plan, contracts with the Commissioner 
        to relocate.
    [(c) No] (c) Payments for Persons Moving After a Certain 
Date._No payment shall be made pursuant to this section to or 
for any person who, after May 29, 1974, moved intoan area 
partitioned pursuant to section 640d-7 of this title or section 640d-2 
or 640d-3 of this title to a tribe of which he is not a member.
    (d) Prohibition._No payment for benefits under this Act may 
be made to any head of a household if, as of September 30, 
2005, that head of household has not been certified as eligible 
to receive the payment.

Sec. 640d-14

    [Sec. 15. (a)]

SEC. 11. RELOCATION HOUSING.

    [The Commission] (a) Purchase of Habitation and 
Improvements._
          (1) In general._The Commission shall purchase from 
        the head of each household whose household is required 
        to relocate under the terms of this subchapter the 
        habitation and other improvements owned by him on the 
        area from which he is required to move. [The purchase]
          (2) Purchase price._The purchase price shall be the 
        fair market value of such habitation and improvements. 
        [as determined under clause (2) of subsection (b) of 
        section 13.]
    [(b) In addition] (b) Reimbursement for Moving Expenses and 
Payment for Replacement Dwelling._In addition to the payments 
made pursuant to subsection (a) of this section, the 
Commissioner [shall:] shall--
          (1) reimburse each head of a household whose 
        household is required to relocate pursuant to this 
        subchapter for the actual reasonable moving expenses of 
        the household as if the household members were 
        displaced persons under section 202 of the Uniform 
        Relocation Assistance and Real Property Acquisition 
        Policies Act of 1970 (84 Stat. 1894) [42 U.S.C.A. 
        Sec. 4622]; and
          (2) pay to each head of a household whose household 
        is required to relocate pursuant to this subchapter an 
        amount which, when added to the fair market value of 
        the habitation and improvements purchased under 
        subsection (a) of this section, equals the reasonable 
        cost of a decent, safe, and sanitary replacement 
        dwelling adequate to accommodate such household: 
        Provided, That the additional payment authorized by 
        this paragraph (2) shall not exceed $17,000 for a 
        household of three or less and not more than $25,000 
        for a household of four or more, except that the 
        Commissioner may, after consultation with the Secretary 
        of Housing and Urban Development, annually increase or 
        decrease such limitations to reflect changes in housing 
        development and construction costs, other than costs of 
        land, during the preceding year: Provided further, That 
        the additional payment authorized by this subsection 
        shall be made only to a head of a household required to 
        relocate pursuant to this subchapter who purchases and 
        occupies such replacement dwelling not later than the 
        end of the two-year period beginning on the date on 
        which he receives from the Commissioner final payment 
        for the habitation and improvements purchased under 
        subsection (a) of this section, or on the date on which 
        such household moves from such habitation, whichever is 
        the later date. The payments made pursuant to this 
        paragraph (2) shall be used only for the purpose of 
        obtaining decent, safe, and sanitary replacement 
        dwellings adequate to accommodate the households 
        relocated pursuant to this subchapter.
    [(c) In implementing] (c) Standards; Certain Payments._
          (1) Standards._In carrying out subsection (b) of this 
        section, the Commissioner shall establish standards 
        consistent with those established in the implementation 
        of the Uniform Relocation Assistance and Real Property 
        Acquisition Policies Act of 1970 (84 Stat. 1894) (42 
        U.S.C.A. Sec. 4601 et seq.). [No payment]
          (2) Certain payments._No payment shall be made 
        pursuant to this section to or for any person who, 
        later than one year prior to December 22, 1974, moved 
        into an area partitioned pursuant to [section 8] 
        section 4 of this title or [section 3 or 4] section 2 
        of this title to a tribe of which he is not a member.
    [(d) The] (d) Methods of Payment._The Commissioner shall be 
responsible for the provision of housing for each household 
eligible for payments under this section in one of the 
following manners: [(1) Should]
          (1) Home ownership opportunity projects._Should any 
        head of household apply for and become a participant or 
        homebuyer in a mutual help housing or other 
        homeownership opportunity project undertaken under the 
        United States Housing Act of 1937 (50 Stat. 888) as 
        amended [42 U.S.C.A. Sec. 1437 et seq.], or in any 
        other federally assisted housing program now or 
        hereafter established, the amounts payable with respect 
        to such household under paragraph (2) of subsection (b) 
        of this section and under subsection (a) of this 
        section shall be paid to the local housing agency or 
        sponsor involved as a voluntary equity payment and 
        shall be credited against the outstanding indebtedness 
        or purchase price of the household's home in the 
        project in a manner which will accelerate to the 
        maximum extent possible the achievement by that 
        household of debt free home ownership. [(2) Should]
          (2) Purchased and constructed dwellings._Should any 
        head of household wish to purchase or have constructed 
        a dwelling which the Commissioner determines is decent, 
        safe, sanitary, and adequate to accommodate the 
        household, the amounts payable with respect to such 
        household under paragraph (2) of subsection (b) of this 
        section and under subsection (a) of this section shall 
        be paid to such head of household in connection with 
        such purchase or construction in a manner which the 
        Commissioner determines will assure the use of the 
        funds for such purpose. [(3) Should]
          (3) Failure to arrange relocation._Should any head of 
        household not make timely arrangements for relocation 
        housing, or should any head of household elect and 
        enter into an agreement to have the Commissioner 
        construct or acquire a home for the household, the 
        Commissioner may use the amounts payable with respect 
        to such household under paragraph (2) of subsection (b) 
        of this section and under subsection (a) of this 
        section for the construction or acquisition (including 
        enlargement or rehabilitation if necessary) of a home 
        and related facilities for such household: Provided, 
        That, the Commissioner may combine the funds for any 
        number of such households into one or more accounts 
        from which the costs of such construction or 
        acquisition may be paid on a project basis and the 
        funds in such account or accounts shall remain 
        available until expended: Provided further, That the 
        title to each home constructed or acquired by the 
        Commissioner pursuant to this paragraph shall be vested 
        in the head of the household for which it was 
        constructed or acquired upon occupancy by such 
        household, but this shall not preclude such home being 
        located on land held in trust by the United States.
    [(e) The] (e) Disposal of Acquired Dwellings and 
Improvements._The Commission is authorized to dispose of 
dwellings and other improvements acquired or constructed 
pursuant to this subchapter in such manner, including resale of 
such dwellings and improvements to members of the tribe 
exercising jurisdiction over the area at prices no higher than 
the acquisition or construction costs, as best effects [section 
8] section 4 of this title and the order of the District Court 
pursuant to [section 3 or 4] section 2 of this title.
    [(f) Notwithstanding] (f) Preferential Treatment._
Notwithstanding any other provision of law to the contrary, the 
Commissioner shall on a preferential basis provide relocation 
assistance and relocation housing under subsections (b), (c), 
and (d) of this section to the head of each household of 
members of the Navajo Tribe who were evicted from the Hopi 
Indian Reservation as a consequence of the decision in the case 
of United States v. Kabinto (456 F.2d 1087 (1972)): Provided, 
That such heads of households have not already received 
equivalent assistance from Federal agencies.
    [(g) Appeals of eligibility determinations
    [Notwithstanding any other provision of law, appeals from 
any eligibility determination of the Relocation Commission, 
irrespective of the amount in controversy, shall be brought in 
the United States District Court for the District of Arizona]
    (g) Benefits Held in Trust.--
          (1) In general.--Not later than September 30, 2008, 
        the Commissioner shall notify the Secretary of the 
        identity of any head of household that, as of that 
        date--
                  (A) is certified as eligible to receive 
                benefits under this Act;
                  (B) does not reside on land that has been 
                partitioned to the tribe of which the head of 
                household is a member; and
                  (C) has not received a replacement home.
          (2) Transfer of funds.--Not later than September 30, 
        2008, the Commissioner shall transfer to the Secretary 
        any funds not used by the Commissioner to make payments 
        under this Act to eligible heads of households.
          (3) Disposition of transferred funds.--
                  (A) In general.--The Secretary shall hold any 
                funds transferred under paragraph (2) in trust 
                for the heads of households described in 
                paragraph (1)(A).
                  (B) Payment amounts.--Of the funds held in 
                trust under subparagraph (A), the Secretary 
                shall make payments to heads of households 
                described in paragraph (1)(A) in amounts that 
                would have been made to the heads of households 
                under this Act before September 30, 2008--
                          (i) on receipt of a request of a head 
                        of household, to be used for a 
                        replacement home; or
                          (ii) on the date of death of the head 
                        of household, if the head of household 
                        does not make a request under clause 
                        (i), in accordance with subparagraph 
                        (C).
                  (C) Distribution of funds on death of head of 
                household.--If the Secretary holds funds in 
                trust under this paragraph for a head of 
                household described in paragraph (1)(A) on the 
                death of the head of household, the Secretary 
                shall--
                          (i) identify and notify any heir of 
                        the head of household; and
                          (ii) distribute the funds held by the 
                        Secretary for the head of household to 
                        any heir--
                                  (I) immediately, if the heir 
                                is at least 18 years old; or
                                  (II) if the heir is younger 
                                than 18 years old on the date 
                                on which the Secretary 
                                identified the heir, on the 
                                date on which the heir attains 
                                the age of 18.
    (h) Notification.--
          (1) In general.--Not later than 180 days after the 
        date of enactment of the Navajo-Hopi Land Settlement 
        Amendments of 2005, the Commissioner shall notify each 
        eligible head of household who has not entered into a 
        lease with the Hopi Tribe to reside on land partitioned 
        to the Hopi Tribe, in accordance with section 700.138 
        of title 25, Code of Federal Regulations (or a 
        successor regulation).
          (2) List.--On the date on which a notice period 
        referred to in section 700.139 of title 25, Code of 
        Federal Regulations (or a successor regulation), 
        expires, the Commissioner shall submit to the Secretary 
        and the United States Attorney for the District of 
        Arizona a list containing the name and address of each 
        eligible head of household who--
                  (A) continues to reside on land that has not 
                been partitioned to the Tribe of the head of 
                household; and
                  (B) has not entered into a lease to reside on 
                that land.
          (3) Construction of replacement homes.--Before July 
        1, 2008, but no later than 90 days after receiving a 
        notice of the imminent removal of a relocatee from land 
        provided to the Hopi Tribe under this Act from the 
        Secretary or the United States Attorney for the 
        District of Arizona, the Commissioner may begin 
        construction of a replacement home on any land acquired 
        under section 6.
    (i) Appeals.--
          (1) In general.--The Commissioner shall establish an 
        expedited hearing procedure for any appeal relating to 
        the denial of eligibility for benefits under this Act 
        (including regulations promulgated pursuant to this 
        Act) that is pending on, or filed after, the date of 
        enactment of the Navajo-Hopi Land Settlement Amendments 
        of 2005.
          (2) Final determinations.--The hearing procedure 
        established under paragraph (1) shall--
                  (A) provide for a hearing before an impartial 
                third party, as the Commissioner determines 
                necessary; and
                  (B) ensure that a final determination is made 
                by the Office of Navajo and Hopi Indian 
                Relocation for each appeal described in 
                paragraph (1) by not later than January 1, 
                2008.
          (3) Notice.--
                  (A) In general.--Not later than 30 days after 
                the date of enactment of the Navajo-Hopi Land 
                Settlement Amendments of 2005, the Commissioner 
                shall provide written notice to any individual 
                that the Commissioner determines may have the 
                right to a determination of eligibility for 
                benefits under this Act.
                  (B) Requirements for notice.--The notice 
                provided under subparagraph (A) shall--
                          (i) specify that a request for a 
                        determination of eligibility for 
                        benefits under this Act shall be 
                        presented to the Commission not later 
                        than 180 days after the date on which 
                        the notice is issued; and
                          (ii) be provided--
                                  (I) by mail (including means 
                                other than certified mail) to 
                                the last known address of the 
                                recipient; and
                                  (II) in a newspaper of 
                                general circulation in the 
                                geographic area in which an 
                                address referred to in 
                                subclause (I) is located.
    (j) Procurement of Services.--
          (1) In general.--Notwithstanding any other provision 
        of this Act, to ensure the full and fair evaluation of 
        the requests referred to in subsection (i)(3)(A) 
        (including an appeal hearing before an impartial third 
        party referred to in subsection (i)(2)(A), the 
        Commissioner may enter into such contracts or 
        agreements to procure such services, and employ such 
        personnel (including attorneys), as the Commissioner 
        determines to be necessary.
          (2) Detail of administrative law judges or hearing 
        officers.--The Commissioner may request the Secretary 
        to act through the Director of the Office of Hearings 
        and Appeals to make available to the Office of Navajo 
        and Hopi Indian Relocation an administrative law judge 
        or other hearing officer with appropriate 
        qualifications to review the requests referred to in 
        subsection (i)(3)(A), as determined by the 
        Commissioner.
    (k) Appeal to United States Circuit Court of Appeals.--
          (1) In general.--Subject to paragraph (3), any 
        individual who, under the procedures established by the 
        Commissioner pursuant to this section, is determined 
        not to be eligible to receive benefits under this Act 
        may appeal that determination to the United States 
        Circuit Court of Appeals for the Ninth Circuit 
        (referred to in this subsection as the ``Circuit 
        Court'').
          (2) Review.--
                  (A) In general.--The Circuit Court shall, 
                with respect to each appeal described in 
                paragraph (1)--
                          (i) review the entire record (as 
                        certified to the Circuit Court under 
                        paragraph (3)) on which a determination 
                        of the ineligibility of the appellant 
                        to receive benefits under this Act was 
                        based; and
                          (ii) on the basis of that review, 
                        affirm or reverse the determination.
                  (B) Standard of review.--The Circuit Court 
                shall affirm any determination that the Circuit 
                Court determines to be supported by substantial 
                evidence.
          (3) Notice of appeal.--
                  (A) In general.--Not later than 30 days after 
                a determination of ineligibility under 
                paragraph (1), an affected individual shall 
                file a notice of appeal with--
                          (i) the Circuit Court; and
                          (ii) the Commissioner.
                  (B) Certification of record.--On receipt of a 
                notice under subparagraph (A)(ii), the 
                Commissioner shall submit to the Circuit Court 
                the certified record on which the determination 
                that is the subject of the appeal was made.
                  (C) Review period.--Not later than 60 days 
                after receiving a certified record under 
                subparagraph (B), the Circuit Court shall 
                conduct a review and file a decision regarding 
                an appeal in accordance with paragraph (2).
                  (D) Binding decision.--A decision made by the 
                Circuit Court under this subsection shall be 
                final and binding on all parties.

Sec. 640d-15

    [Sec. 16. (a) The Navajo]

SEC. 12. PAYMENT FOR USE OF LAND.

    (a) In General._The Navajo Tribe shall pay to the Hopi 
Tribe the fair rental value as determined by the Secretary for 
all use by Navajo individuals of any lands partitioned to the 
Hopi Tribe pursuant to [sections 8 and 3 or 4] sections 2 and 4 
of this title subsequent to the date of the partition thereof.
    [(b) The] (b) Payment._The Hopi Tribe shall pay to the 
Navajo Tribe the fair rental value as determined by the 
Secretary for all use by Hopi individuals of any lands 
partitioned to the Navajo Tribe pursuant to [sections 8 and 3 
or 4] sections 2 and 4 of this title subsequent to the date of 
the partition thereof.

Sec. 640d-16

    [Sec. 17. (a)]

SEC. 13. EFFECT OF ACT.

    (a) Title, Possession and Enjoyment._
          (1) In general._Nothing in this subchapter shall 
        affect the title, possession, and enjoyment of lands 
        heretofore allotted to Hopi and Navajo individuals for 
        which patents have been issued. [Such]
          (2) Residence on other reservations._Any Hopi 
        individuals living on the Navajo Reservation shall be 
        subject to the jurisdiction of the Navajo Tribe and 
        such Navajo individuals living on the Hopi Reservation 
        shall be subject to the jurisdiction of the Hopi Tribe.
    [(b) Nothing] (b) Federal Employees._Nothing in this 
subchapter shall require the relocation from any area 
partitioned pursuant to this subchapter of the household of any 
Navajo or Hopi individual who is employed by the Federal 
Government within such area or to prevent such employees or 
their households from residing in such areas in the future: 
Provided, That any such Federal employee who would, except for 
the provisions of this subsection, be relocated under the terms 
of this subchapter may elect to be so relocated.

Sec. 640d-17

    [Sec. 18. (a) Either]

SEC. 14. ACTIONS FOR ACCOUNTING, FAIR VALUE OF GRAZING, AND CLAIMS FOR 
                    DAMAGES TO LAND.

    (a) Actions by Tribes._Either tribe, acting through the 
chairman of its tribal council, for and on behalf of the tribe, 
including all villages, clans, and individual members thereof, 
is hereby authorized to commence or defend in the District 
Court an action or actions against the other tribe for the 
following purposes if such action or actions are not settled 
pursuant to [Section 3 or 4] section 2 of this title:
          (1) for an accounting of all sums collected by either 
        tribe since the 17th day of September 1957 as trader 
        license fees or commissions, lease proceeds, or other 
        similar charges for the doing of business or the use of 
        lands within the joint use area, and judgment for one-
        half of all sums so collected, and not paid to the 
        other tribe, together with interest at the rate of 6 
        per centum per annum compounded annually;
          (2) for the determination and recovery of the fair 
        value of the grazing and agricultural use by either 
        tribe and its individual members since the 28th day of 
        September 1962 of the undivided one-half interest of 
        the other tribe in the lands within the joint use area, 
        together with interest at the rate of 6 per centum per 
        annum compounded annually, notwithstanding the fact 
        that the tribes are tenants in common of such lands; 
        and
          (3) for the adjudication of any claims that either 
        tribe may have against the other for damages to the 
        lands to which title was quieted as aforesaid by the 
        United States District Court for the District of 
        Arizona in such tribes, share and share alike, subject 
        to the trust title of the United States, without 
        interest, notwithstanding the fact that such tribes are 
        tenants in common of such lands: Provided, That the 
        United States may be joined as a party to such an 
        action and, in such case, the provisions of sections 
        1346(a)(2) and 1505 of title 28 shall not be applicable 
        to such action.
    [(b) Neither] (b) Defenses._Neither laches nor the statute 
of limitations shall constitute a defense to any action 
authorized by this subchapter for existing claims if commenced 
within two years from December 22, 1974, or one hundred and 
eighty days from the date of issuance of an order of the 
District Court pursuant to [section 3 or 4] section 2 of this 
title, whichever is later.
    [(c) Either] (c) Further Original, Ancillary, or 
Supplementary Acts to Ensure Quiet Enjoyment._
          (1) In general._Either tribe may institute such 
        further original, ancillary, or supplementary actions 
        against the other tribe as may be necessary or 
        desirable to insure the quiet and peaceful enjoyment of 
        the reservation lands of the tribes by the tribes and 
        the members thereof, and to fully accomplish all 
        objects and purposes of this subchapter. [Such actions]
          (2) Action through chairman._An action under 
        paragraph (1) may be commenced in the District Court by 
        either tribe against the other, acting through the 
        chairman of its tribal council, for and on behalf of 
        the tribe, including all villages, clans, and 
        individual members thereof.
    [(d) Except] (d) United States as Party; Judgments Against 
the United States._
          (1) In general._Except as provided in clause (3) of 
        subsection (a) of this section, the United States shall 
        not be an indispensable party to any action or actions 
        commenced pursuant to this section. [Any judgment or 
        judgments]
          (2) Effect of judgment._Any judgment by the District 
        Court in such action or actions shall not be regarded 
        as a claim or claims against the United States.
    [(e) All] (e) Remedies._All applicable provisional and 
final remedies and special proceedings provided for by the 
Federal Rules of Civil Procedure and all other remedies and 
processes available for the enforcement and collection of 
judgments in the district courts of the United States may be 
used in the enforcement and collection of judgments obtained 
pursuant to the provisions of this subchapter.

Sec. 640d-18

    [Sec. 19. (a) Notwithstanding]

SEC. 15. JOINT USE.

    (a) Reduction of Livestock._
          (1) In general._Notwithstanding any provision of this 
        subchapter, or any order of the District Court pursuant 
        to [section 3 or 4] section 2 of this title, the 
        Secretary is authorized and directed to immediately 
        commence reduction of the numbers of all the livestock 
        now being grazed upon the lands within the joint use 
        area and complete such reductions to carrying capacity 
        of such lands, as determined by the usual range 
        capacity standards as established by the Secretary 
        after December 22, 1974. [The Secretary is directed to]
          (2) Conservation practices and methods._The Secretary 
        shall institute such conservation practices and methods 
        within such area as are necessary to restore the 
        grazing potential of such area to the maximum extent 
        feasible.
    [(b) The] (b) Survey Location of Monuments and Fencing of 
Boundaries._The Secretary, upon the date of issuance of an 
order of the District Court pursuant to [sections 8 and 3 or 4] 
sections 2 and 4 of this title, shall provide for the survey 
location of monuments, and fencing of boundaries of any lands 
partitioned pursuant to [sections 8 and 3 or 4] sections 2 and 
4 of this title.
    [(c)(1) Surveying] (c) Surveying, Monumenting and Fencing; 
Livestock Reduction Program._
          (1) Surveying, monumenting and fencing._Surveying, 
        monumenting, and fencing as required by subsection (b) 
        of this section shall be completed within twelve months 
        after July 8, 1980, with respect to lands partitioned 
        pursuant to [section 4] section 2 of this title and 
        within twelve months after a final order of partition 
        with respect to any lands partitioned pursuant to 
        [section 8] section 4 of this title.
          [(2) The]
          (2) Livestock reduction program._The livestock 
        reduction program required under subsection (a) of this 
        section shall be completed within eighteen months after 
        July 8, 1980.

Sec. 640d-19

    [Sec. 20. The members]

SEC. 16. RELIGIOUS CEREMONIAL USES; PIPING OF WATER.

    The members of the Hopi Tribe shall have perpetual use of 
Cliff Spring as shown on USGS 7 1/2 minute Quad named Toh Ne 
Zhonnie Spring, Arizona, Navajo County, dated 1968; and located 
1,250 feet west and 200 feet south of the intersection of 36 
degrees, 17 minutes, 30 seconds north latitude and 110 degrees, 
9 minutes west longitude, as a shrine for religious ceremonial 
purposes, together with the right to gather branches of fir 
trees growing within a 2-mile radius of said spring for use in 
such religious ceremonies, and the further right of ingress, 
egress, and regress between the Hopi Reservation and said 
spring. The Hopi Tribe is hereby authorized to fence said 
spring upon the boundary line as follows: Beginning at a point 
on the 36 degrees, 17 minutes, 30 seconds north latitude 500 
feet west of its intersection with 110 degrees, 9 minutes west 
longitude, the point of beginning; thence north 46 degrees 
west, 500 feet to a point on the rim top at elevation 6,900 
feet; thence southwesterly 1,200 feet (in a straight line) 
following the 6,900 feet contour; thence south 46 degrees east, 
600 feet; thence north 38 degrees east, 1,300 feet to the point 
of beginning, 23.8 acres more or less: Provided, That, if and 
when such spring is fenced, the Hopi Tribe shall pipe the water 
therefrom to the edge of the boundary as hereinabove described 
for the use of residents of the area. The natural stand of fir 
trees within such 2-mile radius shall be conserved for such 
religious purposes.

Sec. 640d-20

    [Sec. 21. Notwithstanding]

SEC. 17. ACCESS TO RELIGIOUS SHRINES.

    Notwithstandinganything contained in this subchapter to the 
contrary, the Secretary shall make reasonable provision for the use of 
and right of access to identified religious shrines for the members of 
each tribe on the reservation of the other tribe where such use and 
access are for religious purposes.

Sec. 640d-22

    [Sec. 22. The availability]

SEC. 18. EXCLUSION OF PAYMENTS FROM CERTAIN FEDERAL DETERMINATIONS OF 
                    INCOME.

    (a) In General._The availability of financial assistance or 
funds paid pursuant to this subchapter may not be considered as 
income or resources or otherwise utilized as the basis (1) for 
denying a household or member thereof participation in any 
federally assisted housing program or (2) for denying or 
reducing the financial assistance or other benefits to which 
such household or member would otherwise be entitled to under 
the Social Security Act (42 U.S.C.A. Sec. 301 et seq.) or any 
other Federal or federally assisted program. [None of the 
funds]
    (b) Federal and State Income Taxes._None of the funds 
provided under this subchapter shall be subject to Federal or 
State income taxes.

Sec. 640d-22

    [Sec. 23. The Navajo]

SEC. 19. AUTHORIZATION OF EXCHANGE.

    (a) In General._The Navajo and Hopi Tribes are hereby 
authorized to exchange lands which are part of their respective 
reservations. [In the event that the Tribes should]
    (b) Negotiated Exchanges._If the Tribes negotiate and agree 
on an exchange of lands pursuant to authority granted herein 
the Commissioner shall make available 125 per centum of the 
relocation benefits provided in [sections 14 and 15] sections 
10 and 11 of this title to members of either tribe living on 
land to be exchanged to other than his or her own tribe, except 
that such benefits shall be available only if, within one 
hundred and eighty days of the agreement, a majority of the 
adult members of the tribe who would be eligible to relocate 
from exchanged lands sign a contract with the Commissioner to 
relocate within twelve months of the agreement or such later 
time as determined by the Commissioner and such additional 
benefits shall only be paid to those who actually relocate 
within such period.

Sec. 640d-23

    [Sec. 24. If]

SEC. 20. SEVERABILITY.

    If any provision of this subchapter, or the application of 
any provision to any person, entity or circumstance, is held 
invalid, the remainder of this subchapter shall not be affected 
thereby.

Sec. 640d-25

    [Sec. 27. Discretionary fund to expedite relocation efforts
    [(a) Authorization of Appropriations.--To facilitate and 
expedite the relocation efforts of the Commissioner, there is 
hereby authorized to be appropriated annually, effective in 
fiscal year 1981, not to exceed $6,000,000 as a discretionary 
fund.
    [(b) Authorized Uses.--Funds appropriated under the 
authority of subsection (a) of the section may be used by the 
Commissioner for grants, contracts, or expenditures which 
significantly assist the Commissioner or assist the Navajo 
Tribe or Hopi Tribe in meeting the burdens imposed by this 
subchapter.
    [(c) Funding and Construction of Hopi High School and 
Medical Center.--The Secretary]

SEC. 21. FUNDING AND CONSTRUCTION OF HIGH SCHOOL AND MEDICAL CENTER.

    The Secretary of the Interior and the Secretary of Health 
and Human Services, as appropriate, shall assign the highest 
priority, in the next fiscal year after July 8, 1980, to the 
funding and construction of the Hopi high school and Hopi 
medical center consistent with any plans already completed and 
approved by appropriate agencies of the respective departments.

Sec. 640d-26

    [Sec. 28. (a) No action]

SEC. 22. ENVIRONMENTAL IMPACT; WILDERNESS STUDY; CANCELLATION OF LEASES 
                    AND PERMITS.

    (a) In General._No action taken pursuant to, in furtherance 
of, or as authorized by this subchapter, shall be deemed a 
major Federal action for purposes of the National Environmental 
Policy Act of 1969, as amended (42 U.S.C.A. Sec. 4321 et seq.)
    [(b) Any]
    (b) Effect of Wilderness Study._Any transfer of public 
lands pursuant to this subchapter shall be made notwithstanding 
the provisions of sections 1782 and 1752(g) of title 43.
    (c) Construction Requirements._
          (1) In general._Any construction activity under this 
        Act shall be carried out in accordance with sections 3 
        through 7 of the Act of June 27, 1960 (16 U.S.C. 469a-1 
        through 469c).
          (2) Compliance with other requirements._If a 
        construction activity meets the requirements under 
        paragraph (1), the activity shall be considered to be 
        in accordance with any applicable requirement of--
                  (A) Public Law 89-665 (80 Stat. 915); and
                  (B) the Act of June 8, 1906 (34 Stat. 225, 
                Chapter 3060).
    [Sec. 29. (a) Any]

SEC. 23. ATTORNEY FEES AND COURT COSTS.

    (a) In General._In any litigation or court action between 
or among the Hopi Tribe, the Navajo Tribe and the United States 
or any of its officials, departments, agencies, or 
instrumentalities, arising out of the interpretation or 
implementation of this subchapter, as amended, the Secretary 
shall pay, subject to the availability of appropriations, 
attorney's fees, costs and expenses as determined by the 
Secretary to be reasonable. [For each]
    (b) Authorization of Appropriations._For each tribe, there 
is hereby authorized to be appropriated not to exceed $120,000 
in fiscal year 1981, $130,000 in fiscal year 1982, $140,000 in 
fiscal year 1983, $150,000 in fiscal year 1984, and $160,000 in 
fiscal year 1985, and each succeeding year thereafter until 
such litigation or court action is finally completed.
    [(b) Upon] (c) Award by Court._
          [Any Party] (1) In general._On the entry of a final 
        judgment in any such litigation or court action, the 
        court shall award reasonable attorney's fees, costs and 
        expenses to the party, other than the United States or 
        its officials, departments, agencies, or 
        instrumentalities, which prevails or substantially 
        prevails, where it finds that any opposing party has 
        unreasonably initiated or contested such litigation.
          (2) Reimbursement of united states._Any party to whom 
        such an award has been made shall reimburse the United 
        States out of such award to the extent that it has 
        received payments pursuant to subsection (a) of this 
        section.
    [(c) To] (d) Excess Difference._To the extent that any 
award made to a party against the United States pursuant to 
subsection (b) of this section exceeds the amount paid to such 
party by the United States pursuant to subsection (a) of this 
section, such difference shall be treated as if it were a final 
judgment of the Court of Claims under section 2517 of title 28.
    [(d) This] (e) Application of Section._This section shall 
apply to any litigation or court action pending upon July 8, 
1980, in which a final order, decree, or judgment has not been 
entered, but shall not apply to any action authorized by 
[section 8 or 18(a) of this title] section 4 or section 14(a) 
of this title.

[25 U.S.C. Sec. 28

    [(a)
    [(b) Any Navajo head of household who desires to do so may 
submit an application for a life estate lease to the 
Commissioner. Such application shall contain such information 
as the Commissioner may prescribe by regulation, such 
regulation to be promulgated by the Commissioner within ninety 
days of July 8, 1980. To be considered, such application must 
be filed with the Commissioner on or before April, 1, 1981: 
Provided, That the Commissioner may, for good cause, grant an 
extension of one hundred and eighty days.
    [(c) Upon receipt of applications filed pursuant to this 
section, the Commissioner shall group them in the following 
order: (A) Applicants who are determined to be at least 50 per 
centum disabled as certified by a physician approved by the 
Commissioner. Such applicants shall be ranked in the order of 
the severity of their disability. (B) Applicants who are not at 
least 50 per centum disabled shall be ranked in order of their 
age, with oldest listed first and the youngest listed last: 
Provided, That, if any applicant physically resides in quarter 
quad Nos. 78NW, 77 NE, 77 NW, 55 SW, or 54 SE as designated on 
the Mediator's partition map, such applicant shall be given 
priority over another applicant of equal age. (C) Applicants 
who did not, as of December 22, 1974, and continuously 
thereafter, maintain a separate place of abode and actually 
remain domiciled on Hopi partitioned lands, and who, but for 
this subsection would be required to relocate, shall be 
rejected by the Commissioner. (D) Applicants who were not at 
least forty-nine years of age on December 22, 1974, or are not 
at least 50 per centum disabled, shall also be rejected by the 
Commissioner.
    [(d) The Commission shall have authority to award life 
estate leases to not more than one hundred and twenty 
applicants with first priority being given to applicants listed 
pursuant to subsection (c)(A) of this section and the next 
priority given to the applicants listed pursuant to subsection 
(c)(B) of this section, in order of such listing.
    [(e) Each life estate lease shall consist of a fenced area 
not exceeding ninety acres of land which shall include the life 
tenant's present residence and may be used by the life tenant 
to feed not toexceed twenty-five sheep units per year or 
equivalent livestock. The Secretary, under existing authority, shall 
make available to life estate tenants such assistance during that 
tenure, as may be necessary to enable such tenant to feed such 
livestock at an adequate nutritional level.
    [(f) No persons may reside on a life estate other than the 
life tenant, his or her spouse, and minor dependents, and/or 
such persons who are necessarily present to provide for the 
care of the life tenant. The Commission shall promulgate 
regulations to carry out the intent of this subsection.
    [(g) The life estate tenure shall end by voluntary 
relinquishment, or at the death of the life tenant or the death 
of his or her spouse, whichever occurs last: Provided, That 
each survivorship right shall apply only to those persons who 
were lawfully married to each other on or before July 8, 1980.
    [(h) Nothing in this section shall be construed as 
prohibiting any such applicant who receives a life estate lease 
under this section from relinquishing, prior to its 
termination, such estate at any time and voluntarily 
relocating. Upon voluntary relinquishment of such estate, by 
such means or instrument as the Secretary shall prescribe, such 
applicant shall be entitled to relocation benefits from the 
Secretary comparable to those provided by section 640d-14 of 
this title. For life estates terminated by the death of the 
life tenant or his or her surviving spouse, compensation shall 
be paid to the estate of the deceased life tenant or surviving 
spouse based on the fair market value of the habitation and 
improvements at the time of the expiration of such tenure and 
not before. Such payments shall be in lieu of any other payment 
pursuant to subsection (a) of section 640d-14 of this title. 
Assistance provided pursuant to section 640d-14(b) of this 
title, shall be paid to any head of household lawfully residing 
on such life estate pursuant to subsection (f) of this section 
who is required to move by the termination of such life estate 
by the death of the life tenant and his or her surviving spouse 
and who does not maintain a residence elsewhere. Compensation 
under section 640d-14(a) of this title shall be paid and 
distributed in accordance with the last will and testament of 
the life tenant or surviving spouse or, in the event no valid 
last will and testament is left, compensation shall be paid and 
distributed to his or her heirs in accordance with existing 
Federal law. Upon termination of a life estate by whatever 
means, the dependents residing with the individuals having such 
life estate so terminated shall have ninety days following such 
termination within which to relocate.
    [(i) The Secretary shall pay, on an annual basis, the fair 
market rental value of such life estate leases to the tribe to 
whom the lands leased were partitioned.
    [(j) Nothing in this subchapter or any other law shall be 
construed to prevent a life tenant from making reasonable 
improvements on the life estate which are related to the 
residence and agricultural purposes of the life tenancy.
    [(k) The Commission is authorized to grant not to exceed 
ten additional life estate leases to Hopi heads of household 
residing on Navajo-partitioned lands under such terms of this 
section as may be appropriate.]

Sec. 640d-29

    [Sec. 31. (a) Except]

SEC. 24. LOBBYING.

    (a) In General._Except as provided in subsection (b) of 
this section, no person or entity who has entered into a 
contract with the Commissioner to provide services under this 
subchapter may engage in activities designed to influence 
Federal legislation on any issue relating to the relocation 
required under this subchapter.
    [(b) Subsection] (b) Applicability._Subsection (a) of this 
section shall not apply to the Navajo Tribe or the Hopi Tribe, 
except that such tribes shall not spend any funds received from 
the Office in any activities designed to influence Federal 
legislation.

Sec. 640d-30

    [Sec. 32. (a) There]

SEC. 25. NAVAJO REHABILITATION TRUST FUND.

    (a) Establishment._There is hereby established in the 
Treasury of the United States a trust fund to be known as the 
``Navajo Rehabilitation Trust Fund'', which shall consist of 
the funds transferred under subsection (b) of this section and 
of the funds appropriated pursuant to subsection (f) of this 
section and any interest or investment income accrued on such 
funds.
    [(b) All] (b) Deposit of Income Into Fund._All of the net 
income derived by the Navajo Tribe from the surface and mineral 
estates of lands located in New Mexico that are acquired for 
the benefit of the Navajo tribe under section 640d-10 of this 
title shall be deposited into the Navajo Rehabilitation Trust 
Fund.
    [[(c) The] (c) Investment of Funds._The Secretary shall be 
the trustee of the Navajo Rehabilitation Trust Fund and shall 
be responsible for investment of the funds in such Trust Fund.
    [(d) Funds] (d) Availability of Funds._Funds in the Navajo 
Rehabilitation Trust Fund, including any interest or investment 
accruing thereon, shall be available to the Navajo Tribe, with 
the approval of the Secretary, solely for purposes which will 
contribute to the continuing rehabilitation and improvement of 
the economic, educational, and social condition of families, 
and Navajo communities, that have been affected by--
          (1) the decision in the Healing case, or related, 
        proceedings;
          (2) the provision of this [Act, or] Act; or
          (3) the establishment by the Secretary of the 
        Interior of grazing district number 6 as land for the 
        exclusive use of the Hopi Tribe.
    [(e) By December 1] (e) Expenditure of Funds._
          (1) In general._Not later than December 1, 1989, the 
        Secretary of the Interior, with the advice of the 
        Navajo Tribe and the Office of Navajo and Hopi Indian 
        Relocation, shall submit to the Congress a conceptual 
        framework for the expenditure of the funds authorized 
        for the Navajo Rehabilitation Trust Fund. [Such 
        framework is to be]
          (2) Requirement._The framework under paragraph (1) 
        shall be consistent with the purposes described in 
        subsection (d) of this section.
    [(f) The] (f) Termination._
          (1) In general._The Navajo Rehabilitation Trust Fund 
        shall terminate when, upon petition by the Navajo 
        Tribe, the Secretary determines that the goals of the 
        Trust Fund have been met and the United States has been 
        reimbursed for funds appropriated under subsection (f) 
        of this section.
    [All funds]
          (2) Transfer of remaining funds._All funds in the 
        Trust Fund on such date shall be transferred to the 
        general trust funds of the Navajo Tribe.
    [(g) There is hereby] (g) Authorization of Appropriations._
          (1) In general._There is authorized to be 
        appropriated for the Navajo Rehabilitation Trust Fund 
        not [FN3] exceed $10,000,000 in each of fiscal years 
        [1990, 1991, 1992, 1993, 1994 and 1995] 2006 through 
        2008. [The income]
          (2) Income from land._The income from the land 
        referred to in subsection (b) of this section shall be 
        used to reimburse the General Fund of the United States 
        Treasury for amounts appropriated to the Fund.

Sec. 640d-31

    [Sec. 32. Nothing]

SEC. 26. AVAILABILITY OF FUNDS FOR RELOCATION ASSISTANCE.

    Nothing in this subchapter prohibits the Commissioner from 
providing relocation assistance to families certified as 
eligible, regardless of their current place of residence, with 
funds appropriated to implement this subchapter.

Sec. 640d-24

SEC. 27. AUTHORIZATION OF APPROPRIATIONS.

    (a) Relocation of Households and Members.--There is 
authorized to be appropriated to carry out section 10(b) 
$13,000.000.
    (b) Relocation of Households and Members.--There are 
authorized to be appropriated to carry out section 11 such sums 
as are necessary for each of fiscal years 2006 through 2008.
    (c) Return to Carrying Capacity and Institution of 
Conservation Practices.--There is authorized to be appropriated 
to carry out section 15(a) $10,000,000.
    (d) Survey Location of Monuments and Fencing of 
Boundaries.--There is authorized to be appropriated to carry 
out section 15(b) $500,000.

    TITLE II--PERSONNEL OF THE OFFICE OF NAVAJO AND HOPI RELOCATION

5 U.S.C.A. Sec. 3501. Definitions; application

    (a) * * *
    (b) Except as otherwise provided by this subsection and 
section 3504 of this title, this subchapter applies to each 
employee in or under an Executive agency. This subchapter does 
not apply to an employee whose appointment is required by 
Congress to be confirmed by, or made with the advice and 
consent of, the Senate [or], to a member of the Senior 
Executive Service [or], the Federal Bureau of Investigation and 
Drug Enforcement Administration Senior Executive Service, or to 
an employee of the Office of Navajo and Hopi Indian Relocation.

Sec. 5598. Separation pay for certain employees of the Office of Navajo 
                    and Hopi Relocation

    (a) In General.--Except as provided in subsections (b) and 
(c), the Commissioner of the Officeof Navajo and Hopi Indian 
Relocation shall establish a program to offer separation pay to 
employees of the Office of Navajo and Hopi Indian Relocation (referred 
to in this section as the ``Office'') in the same manner as the 
Secretary of Defense offers separation pay to employees of a defense 
agency under section 5597.
    (b) Separation Pay.--
          (1) In general.--Under the program established under 
        subsection (a), the Commissioner of the Office may 
        offer separation pay only to employees within an 
        occupational group or at a pay level that minimizes the 
        disruption of ongoing Office programs at the time that 
        the separation pay is offered.
          (2) Requirement.--Any separation pay offered under 
        this subsection--
          (A) shall be paid in a lump sum;
          (B) shall be in an amount equal to $25,000, if paid 
        on or before December 31, 2007;
          (C) shall be in an amount equal to $20,000, if paid 
        after December 31, 2007, and before January 1, 2009;
          (D) shall be in an amount equal to $15,000, if paid 
        after December 31, 2008, and before January 1, 2010;
          (E) shall not--
                  (i) be a basis for payment;
                  (ii) be considered to be income for the 
                purposes of computing any other type of benefit 
                provided by the Federal Government; and
          (F) if any individual is otherwise entitled to 
        receiving any severance pay under section 5595 on the 
        basis of any other separation, shall not be payable in 
        addition to the amount of the severance pay to which 
        that individual is entitled under section 5595.
    (c) Prohibition.--No amount shall be payable under this 
section to any employee of the Office for any separation 
occurring after December 31, 2009.

Sec. 8336. Immediate retirement

    (a) * * *

           *       *       *       *       *       *       *

    (j)(1) Except as provided in paragraph (3), an employee is 
entitled to an annuity if he--
          (A)(i) is separated from the service after completing 
        25 years of service or after becoming 50 years of age 
        and completing 20 years of service, or
          (ii) is involuntarily separated, except by removal 
        for cause on charges of misconduct or delinquency, 
        during the 2-year period before the date on which he 
        would meet the years of service and age requirements 
        under clause (i),
          (B) was employed in the Bureau of Indian Affairs, the 
        Indian Health Service, a tribal organization (to the 
        extent provided in paragraph (2)), or any combination 
        thereof, continuously from December 21, 1972, to the 
        date of his separation or was employed by the Office of 
        Navajo and Hopi Indian Relocation during the period 
        beginning on January 1, 1985, and ending on the date of 
        separation of that employee, and
          (C) is not entitled to preference under the Indian 
        preference laws.

Sec. 8339. Computation of annuity

    (a) Except as otherwise provided by this section, the 
annuity of an employee retiring under this subchapter is--
          (1) * * * 

           *       *       *       *       *       *       *

          (8) The annuity of an employee of the Office of 
        Navajo and Hopi Indian Relocation described in section 
        8336(j)(1)(B) shall be determined under subsection (a), 
        except that with respect to service of that employee on 
        or after January 1, 1985, the annuity of that employee 
        shall be in an amount equal to the sum of--
                  (A) the product obtained by multiplying--
                          (i) 2\1/2\ percent of the average pay 
                        of the employee; and
                          (ii) the quantity of service of the 
                        employee on or after January 1, 1985, 
                        that does not exceed 10 years; and
                  (B) the product obtained by multiplying--
                          (i) 2 percent of the average pay of 
                        the employee; and
                          (ii) the quantity of service of the 
                        service of the employee on or after 
                        January 1, 1985, that exceeds 10 years.

Sec. 8412. Immediate retirement

    (a) * * * 

           *       *       *       *       *       *       *

     (i) An employee of the Office of Navajo and Hopi Indian 
Relocation is entitled to any annuity if that employee--
          (1) has been continuously employed in the Office of 
        Navajo and Hopi Indian Relocation during the period 
        beginning on January 1, 1985, and ending on the date of 
        separation of that individual; and
          (2)(A) has completed 25 years of service at any age; 
        or
          (B) has attained the age of 50 years and has 
        completed 20 years of service.

5 U.S.C.A. Sec. 8415. Computation of basic annuity

    (a) * * *

           *       *       *       *       *       *       *

    (n) The annuity of an employee retiring under section 
8412(i) shall be determined in accordance with subsection (d), 
except that with respect to service during the period beginning 
on January 1, 1985, the annuity of the employee shall be an 
amount equal to the sum of--
          (1) the product obtained by multiplying--
                  (A) 2 percent of the average pay of the 
                employee; and
                  (B) the quantity of the total service of the 
                employee that does not exceed 10 years; and
          (2) the product obtained by multiplying--
                  (A) 1\1/2\ percent of the average pay of the 
                employee; and
                  (B) the quantity of the total service of the 
                employee that exceeds 10 years.

        TITLE III--TRANSFER OF FUNCTIONS AND SAVINGS PROVISIONS

SEC. 301. DEFINITIONS.

    In this title:
          (1) Federal agency.--The term ``Federal agency'' has 
        the meaning given the term ``agency'' in section 551(1) 
        of title 5, United States Code.
          (2) Function.--The term ``function'' means any duty, 
        obligation, power, authority, responsibility, right, 
        privilege, activity, or program.
          (3) Office.--The term ``Office'' means the Office of 
        Navajo and Hopi Relocation (including any component of 
        that office).

SEC. 302. TRANSFER OF FUNCTIONS.

    Effective on the date of enactment of this Act, there is 
transferred to the Secretary of the Interior any function of 
the Office that has not been carried out by the Office on the 
date of enactment of this Act, as determined by the Secretary 
of the Interior in accordance with the Act of December 22, 1974 
(25 U.S.C. Sec. 640 et. seq.) (as amended by title I).

                                  
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