[Senate Report 118-33]
[From the U.S. Government Publishing Office]


                                                      Calendar No. 79
118th Congress      }                                   {      Report
                                 SENATE
 1st Session        }                                   {      118-33

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



 
              TRIBAL TRUST LAND HOMEOWNERSHIP ACT OF 2023

                                _______
                                

                  May 30, 2023.--Ordered to be printed

                                _______
                                

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

                              R E P O R T

                          [To accompany S. 70]

      [Including cost estimate of the Congressional Budget Office]

    The Committee on Indian Affairs, to which was referred the 
bill (S. 70) to require the Bureau of Indian Affairs to process 
and complete all mortgage packages associated with residential 
and business mortgages on Indian land by certain deadlines, and 
for other purposes, having considered the same, reports 
favorably thereon without amendment and recommends that the 
bill do pass.

                                PURPOSE

    The purpose of S. 70 is to establish deadlines for the 
Bureau of Indian Affairs (BIA) to process and complete all 
mortgage packages associated with residential and business 
mortgages on Indian land, and to establish a realty ombudsman 
within the BIA to adjudicate delays in the processing of BIA 
realty filings.

                               BACKGROUND

    The BIA reviews and processes all leasehold and trust land 
mortgages on Indian lands. These unique mortgages for Indian 
lands, which often provide low down payments and flexible 
underwriting requirements to encourage homeownership, are 
typically issued by Community Development Financial 
Institutions (CDFIs), conventional lenders, and federal 
government agencies such as the Department of Housing and Urban 
Development (HUD), the Department of Agriculture (USDA), and 
the Department of Veterans Affairs (VA).

                          NEED FOR LEGISLATION

    The BIA reportedly takes an extended period of time to 
process and certify mortgages, which can disincentivize lenders 
and reduce homeownership opportunities for Indian country. To 
address these concerns and improve mortgage acquisition on 
Indian lands, S. 70 would: (1) codify the current BIA mortgage 
handbook deadlines for reviewing and processing residential and 
business leasehold mortgages, land mortgages, and rights-of-
way; (2) provide HUD, USDA, the VA, and Tribes ``read-only'' 
access to the BIA's Trust Asset and Accounting Management 
System (TAAMS) to view the processing status of a loan; (3) 
require the BIA to submit an annual report to Congress 
including the number of mortgage approvals requested and 
processed; (4) direct the Government Accountability Office 
(GAO) to evaluate and report on how digitizing mortgage 
packages may streamline the approval process; and (5) establish 
a realty ombudsman within the BIA to adjudicate delays in the 
processing of BIA realty filings.

                          LEGISLATIVE HISTORY

    S. 70 was introduced by Senator Thune (R-SD) on January 25, 
2023 and referred to the Senate Committee on Indian Affairs on 
the same day. Senators Smith (D-MN), Rounds (R-SD), and Tester 
(D-MT) joined as original co-sponsors. Senators Lummis (R-WY) 
and Lujan (D-NM) were later added as co-sponsors. The Committee 
held a business meeting to consider S. 70 on February 15, 2023 
and ordered the bill reported without amendment.
    117th Congress. On December 14, 2021, an identical bill, S. 
3381, was introduced by Senator Thune (R-SD) and cosponsored by 
Senators Smith (D-MN), Rounds (R-SD), Tester (D-MT), and Lummis 
(R-WY). The Senate referred the bill to the Committee on Indian 
Affairs on the same day. On February 16, 2022, the Committee 
held a hearing to consider the bill. On May 18, 2022, the 
Committee held a business meeting and ordered the bill to be 
reported favorably without amendment. On December 6, 2022, the 
bill was reported and placed on the Senate Calendar. No further 
action was taken on S. 3381 before the conclusion of the 117th 
Congress.

        SECTION-BY-SECTION ANALYSIS OF S. 70 AS ORDERED REPORTED

Section 1--Short title

    This section sets forth the short title as the ``Tribal 
Trust Land Homeownership Act of 2023.''

Section 2--Definitions

    Section 2 clarifies terms used in the bill, including among 
others, ``First Certified Title Status Report,'' ``Indian 
Land,'' ``Right-of-Way Document,'' and ``Subsequent Certified 
Title Status Report.''

Section 3--Mortgage review and processing

    Section 3(a) establishes deadlines and requirements for 
notifying lenders and reviewing, approving, and certifying 
residential and business leasehold mortgages, land mortgages, 
and rights-of-way documents. This section also clarifies that 
such requirements do not apply to residential or business 
leasehold mortgages on Indian land if the applicant is an 
Indian Tribe approved for leasing under section 415(h) of the 
Long-Term Leasing Act of 1955.
    Section 3(b) requires the BIA to immediately notify the 
applicant and lender if the agency fails to meet its deadline 
under section 3(a). This section further requires the BIA to 
respond to a mortgage package inquiry from a lender or party 
that submitted the package within two (2) calendar days.
    Section 3(c) establishes rules for delivery of first and 
subsequent certified title status reports.
    Section 3(d) provides relevant federal agencies and Tribes 
read-only access to the Trust Asset and Accounting Management 
System (TAAMS).
    Section 3(e) directs the Director of the BIA to submit an 
annual report to the Senate Committee on Indian Affairs and the 
House of Representatives, Committee on Natural Resources, 
providing data on the number of residential and business 
leasehold packages it received in a calendar year, among other 
relevant information.
    Section 3(f) directs the Comptroller General of the United 
States to submit a report, not later than a year after 
enactment, evaluating the cost and need to digitize Tribal 
realty documents to the Senate Committee on Indian Affairs and 
the House of Representatives, Committee on Natural Resources.

Section 4--Establishment of Realty Ombudsman position

    Section 4(a) establishes, within the Division of Real 
Estate Services of the Bureau of Indian Affairs, the position 
of ``Realty Ombudsman.''
    Section 4(b) describes the responsibilities of the Realty 
Ombudsman.

                   COST AND BUDGETARY CONSIDERATIONS

[GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT]


    S. 70 would require the Bureau of Indian Affairs (BIA) to 
process and review mortgage packages involving property located 
on tribal land held in trust by specified deadlines. The bill 
also would establish a position within BIA to serve as an 
intermediary between BIA and tribes, tribal members, and 
lenders. In addition, the bill would require BIA to provide 
relevant federal agencies and Indian tribes with access to the 
Trust Asset and Accounting Management System. Finally, S. 70 
would require the Government Accountability Office (GAO) to 
report to the Congress about Indian tribes digitizing documents 
related to mortgages on their land.
    Using information from the Department of the Interior, CBO 
expects the agency would need three employees at an average 
annual cost of about $125,000 in 2024. On that basis, and 
accounting for anticipated inflation, CBO estimates it would 
cost $2 million over the 2023-2028 period to implement those 
requirements. Spending would be subject to the availability of 
appropriated funds. CBO also estimates that the cost of GAO's 
report would not be significant.
    The CBO staff contact for this estimate is Julia Aman. The 
estimate was reviewed by H. Samuel Papenfuss, Deputy Director 
of Budget Analysis.
                                         Phillip L. Swagel,
                             Director, Congressional Budget Office.

               REGULATORY AND PAPERWORK IMPACT STATEMENT

    Paragraph 11(b) of rule XXVI of the Standing Rules of the 
Senate requires each report accompanying a bill to evaluate the 
regulatory and paperwork impact that would be incurred in 
carrying out the bill. The Committee believes that S. 70 will 
have minimal impact on regulatory or paperwork requirements.

                        EXECUTIVE COMMUNICATIONS

    The Committee has received no communications from the 
Executive Branch regarding S. 70.

                        CHANGES IN EXISTING LAW

    On February 9, 2023 the Committee unanimously approved a 
motion to waive subsection 12 of rule XXVI of the Standing 
Rules of the Senate. In the opinion of the Committee, it is 
necessary to dispense with subsection 12 of rule XXVI of the 
Standing Rules of the Senate to expedite the business of the 
Senate.

                                  [all]