To provide for development of the Former Bennett Freeze Area, to contribute to the rehabilitation of the economic, housing, infrastructure, health, and educational condition of those affected by the former Bennett Freeze, and for other purposes.

Summary: Former Bennett Freeze Area Development Act - Requires the Commissioner of the Office of Navajo and Hopi Indian Relocation (ONHIR), by request of the Navajo Nation or the Hopi Tribe by tribal resolution, to enter into a self-determination contract or contracts with the requesting Indian tribe to plan, conduct, and administer programs, functions, services, or activities, including construction programs administered by the Commissioner that pertain directly to the requesting Indian tribe.

Establishes the Former Bennett Freeze Area Rehabilitation Trust Fund in the Treasury.

Makes amounts in the Fund available to the Navajo Nation solely for purposes which will contribute to the continuing rehabilitation and improvement of the economic, housing, infrastructure, health, educational, and social condition of families, and Navajo communities, that have been affected by the former Bennett Freeze.

Authorizes the Commissioner to carry out a rehabilitation program to redress the effects of federal development restrictions (Bennett Freeze) in the western portion of the Navajo Reservation, limited to housing construction and renovation, infrastructure improvements, and economic development initiatives. Repeals requirements that: (1) the United States be reimbursed for funds appropriated to the Navajo Rehabilitation Trust Fund before its termination; and (2) the income derived by the Navajo Tribe from the surface and mineral estates of certain lands located in New Mexico acquired for the Tribe's benefit be used to reimburse the General Fund of the U.S. Treasury. Reauthorizes the Fund.

Grants the Navajo Nation the right to negotiate and approve an Accommodation Agreement with the Hopi Tribe for any Navajo head of household residing on Hopi Partitioned Land that has not otherwise entered into such Agreement but intends to remain on the Land.

Amends the Navajo-Hopi Land Dispute Settlement Act of 1996 to grant any Navajo family that has entered into an Accommodation Agreement the right to: (1) relinquish that Agreement at any time up until the closure of the ONHIR; and after such relinquishment (2) receive the full relocation benefits to which the family would otherwise have been entitled had the family not signed such Agreement, including relocation housing, counseling, and other services.

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Former Bennett Freeze Area 
Development Act''.

SEC. 2. DEFINITIONS.

    In this Act:
            (1) ONHIR.--The term ``ONHIR'' means the Office of Navajo 
        and Hopi Indian Relocation.
            (2) Secretary.--The term ``Secretary'' means the Secretary 
        of the Interior.
            (3) Trust fund.--The term ``Trust Fund'' means the Former 
        Bennett Freeze Area Rehabilitation Trust Fund established under 
        this Act.

SEC. 3. ONHIR TRANSITION.

    (a) Request by Tribe; Authorized Programs.--Upon the request of the 
Navajo Nation or the Hopi Tribe by tribal resolution, the Commissioner 
of the Office of Navajo and Hopi Indian Relocation shall enter into a 
self-determination contract or contracts with the requesting Indian 
tribe to plan, conduct, and administer programs, functions, services, 
or activities (or portion thereof), including construction programs 
administered by the Commissioner that pertain directly to the 
requesting Indian tribe. Programs, functions, services, or activities 
contracted under this subsection shall include administrative functions 
of the Office of Navajo and Hopi Indian Relocation that support the 
delivery of services to Indians, including those administrative 
activities supportive of, but not included as part of, the service 
delivery programs described in this subsection that are otherwise 
contractable. Such administrative functions shall be contractable 
without regard to the organizational level within the Office of Navajo 
and Hopi Indian Relocation that carries out such functions.
    (b) Regulations.--The Commissioner shall issue regulations 
implementing subsection (a) that, to the maximum extent feasible--
            (1) parallel the requirements of the Indian Self-
        Determination and Education Assistance Act (25 U.S.C. 450f); 
        and
            (2) reflect the independent agency status of the Office of 
        Navajo and Hopi Indian Relocation.

SEC. 4. FORMER BENNETT FREEZE AREA REHABILITATION TRUST FUND.

    (a) Establishment.--There is hereby established in the Treasury of 
the United States a trust fund to be known as the Former Bennett Freeze 
Area Rehabilitation Trust Fund, which shall consist of the funds 
appropriated pursuant to subsection (f) of this section and any 
interest or investment income accrued on such funds.
    (b) Secretary as Trustee; Investment of Funds.--The Secretary shall 
be the trustee of the Former Bennett Freeze Area Rehabilitation Trust 
Fund and shall be responsible for investment of the funds in such Trust 
Fund. Notwithstanding the foregoing, upon receipt and approval of a 
plan for the use of those funds consistent with subsection (c), the 
Secretary shall transfer these funds to the Navajo-Hopi Land Commission 
Office of the Navajo Nation, or its designee, as trustee.
    (c) Availability of Funds; Purposes.--Funds in the Former Bennett 
Freeze Area Rehabilitation Trust Fund, including any interest or 
investment accruing thereon, shall be available to the Navajo Nation 
solely for purposes which will contribute to the continuing 
rehabilitation and improvement of the economic, housing, 
infrastructure, health, educational, and social condition of families, 
and Navajo communities, that have been affected by the former Bennett 
Freeze.
    (d) Deposits to Trust Fund.--The Trust Fund shall consist of--
            (1) a set-aside each fiscal year of 0.75 percent of any 
        amounts appropriated for the Operation of Indian Programs 
        budget of the Bureau of Indian Affairs;
            (2) a set-aside each fiscal year of 5.0 percent of any 
        amounts appropriated for the Indian Housing Block Grant Program 
        under title I of the Native American Housing and Self-
        Determination Act of 1996;
            (3) a set-aside each fiscal year of 0.75 percent of any 
        amounts appropriated for the Rural Development Program (title 
        III); and
            (4) any amounts appropriated, transferred, or credited to 
        the Trust Fund under any provision of law.
    (e) Termination of Trust Fund.--The Rehabilitation Trust Fund shall 
terminate when, upon petition by the Navajo Nation, the Secretary 
determines that the goals of the Trust Fund have been met. All funds in 
the Trust Fund on such date shall be transferred to the Treasury.
    (f) Authorization of Appropriations; Reimbursement of General 
Fund.--There is hereby authorized to be appropriated for the Former 
Bennett Freeze Area Rehabilitation Trust Fund such sums as may be 
necessary for each of fiscal years 2011 through 2025.

SEC. 5. MISCELLANEOUS.

    (a) Expansion of ONHIR Authority.--Section 12 of Public Law 93-531 
(25 U.S.C. 640d-11(d)) is amended by adding at the end the following:
            ``(4) The Commissioner is authorized to carry out a 
        rehabilitation program to redress the effects of Federal 
        development restrictions (commonly referred to as the `Bennett 
        Freeze') in the western portion of the Navajo Reservation. This 
        program shall be limited to housing construction and 
        renovation, infrastructure improvements, and economic 
        development initiatives.
            ``(5) There are authorized to be appropriated such sums as 
        may be necessary to carry out the program described in 
        paragraph 4.''.
    (b) Navajo Rehabilitation Trust Fund.--Section 32 of Public Law 93-
531 (25 U.S.C. 640d-30) is amended--
            (1) in the first sentence of subsection (f), by striking 
        ``and the United States has been reimbursed for funds 
        appropriated under subsection (f) of this section'';
            (2) in the first sentence of subsection (g), by striking 
        ``1990, 1991, 1992, 1993, and 1994'' and all that follows 
        through the final period and inserting ``2011, 2012, 2013, 
        2014, and 2015.''; and
            (3) in subsection (g), by striking the second sentence.
    (c) Relocation of Households and Members.--Section 1 of Public Law 
93-531 (25 U.S.C. 640d) is amended by adding at the end the following 
new subsection:
    ``(f) The Navajo Nation has the right to negotiate and approve an 
Accommodation Agreement with the Hopi Tribe for any Navajo head of 
household residing on Hopi Partitioned Land that has not otherwise 
entered into an Accommodation Agreement but intends to remain on the 
Hopi Partitioned Land.''.
    (d) Relinquishment of Accommodation Agreement and Eligibility for 
Relocation Benefits.--The Navajo-Hopi Land Dispute Settlement Act of 
1996 is amended by adding a new section 13 as follows:

``SEC. 13. RELINQUISHMENT OF ACCOMMODATION AGREEMENT AND ELIGIBILITY 
              FOR RELOCATION BENEFITS.

    ``Notwithstanding any other provision of this Act, the Settlement 
Agreement, or the Accommodation Agreement, any Navajo family that has 
entered into an Accommodation Agreement shall have the right--
            ``(1) to relinquish that Agreement at any time up until the 
        closure of the Office of Navajo and Hopi Indian Relocation; and
            ``(2) after relinquishment under paragraph (1), to receive 
        the full relocation benefits to which the family would 
        otherwise have been entitled had the family not signed the 
        Accommodation Agreement, including relocation housing, 
        counseling, and other services.''.
    (e) Appropriations.--There are authorized to be appropriated such 
sums as are necessary to carry out the programs set forth in the 
amendments made by this section. Funds appropriated under this 
subsection shall be in addition to funds made available for use on the 
Navajo and Hopi Reservations out of appropriations heretofore or 
hereafter granted for the benefit, care, or assistance of Indians in 
general, or made pursuant to other authorizations in effect on the date 
of the enactment of this Act.