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[Senate Report 110-504]
[From the U.S. Government Publishing Office]

                                                      Calendar No. 1082
110th Congress                                                   Report
  2d Session                    SENATE                          110-504

======================================================================
 
   AMENDING CERTAIN LAWS RELATING TO NATIVE AMERICANS, AND FOR OTHER 
                                PURPOSES

                                _______
                                

  September 25 (legislative day, September 17), 2008.--Ordered to be 
                                printed

                                _______
                                

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

                              R E P O R T

                        [To accompany H.R. 5680]

    The Committee on Indian Affairs, to which was referred the 
bill (H.R. 5680) to amend certain laws relating to Native 
Americans, and for other purposes, having considered the same, 
reports favorably thereon with an amendment and recommends that 
the bill do pass.

                                Purpose

    The purpose of H.R. 5680, as ordered to be reported, is to 
amend certain laws relating to Native Americans, and for other 
purposes.

                  Background and Need for Legislation

    H.R. 5680, as ordered to be reported, is comprised of nine 
distinct measures that seek to resolve issues affecting certain 
Native Americans and Alaska Natives.

                      COLORADO RIVER INDIAN TRIBES

    Section 2 provides that the Secretary may make, subject to 
any subsequent appropriations acts, an annual disbursement of 
no less than $200,000 and not to exceed $350,000 to the 
Colorado River Indian Tribes. The Tribes are required to use 
funds disbursed under this section to fund an Office of the 
Colorado River Indian Tribes Reservation Energy Development.
    The Bureau of Indian Affairs (BIA) currently operates a 
hydroelectric facility on the Tribes' Reservation. The Tribes 
would like to assume some of the oversight, management, and 
administrative functions of the administration of the 
hydroelectric facility and related infrastructure. The Tribes 
anticipate that any expenditures under this bill would be used 
to establish an Office of the Colorado River Indian Tribes 
Reservation Energy Development that could provide oversight of 
the hydroelectric facility on the Reservation. The Tribes also 
anticipate that any expenditures under this bill could be 
offset by the cost savings of eliminating similar oversight 
that has until now been performed by the BIA.

                 GILA RIVER INDIAN COMMUNITY CONTRACTS

    In 2005, Congress enacted language to the leasing 
provisions of 25 U.S.C. Sec. 415(f) on behalf of the Gila River 
Indian Community which authorized the Community to include 
binding arbitration clauses in any contract, including a lease, 
affecting land within the Gila River Indian Community 
Reservation. The Gila River Indian Community has adopted 
standard provisions in its commercial agreements which provide 
for arbitration should any dispute arise relating thereto. 
These provisions typically provide that the agreement to 
arbitrate may be enforced in either Federal or Tribal Court. In 
addition to the existing authority for ``leases,'' this 
legislation would make clear that the Community is authorized 
to include binding arbitration clauses in ``construction 
contracts.'' The Community believes that this legislation would 
encourage business development on the Gila River Reservation by 
providing prospective developers certainty and predictability 
as they pertain to the mechanism for resolving potential 
contractual disputes.

  LAND AND INTERESTS OF SAULT STE. MARIE TRIBE OF CHIPPEWA INDIANS OF 
                                MICHIGAN

    In 1993, the Sault Ste. Marie Tribe purchased 16 acres of 
private land in the city of St. Ignace, Michigan and operated a 
motel on the property for several years. The Tribe donated this 
fee simple land to the Mackinac Straits Hospital Authority 
(MSH) for the purpose of constructing a new hospital in 2005. 
The new hospital construction is backed by a $35 million loan 
guarantee from the U.S. Department of Agriculture (USDA).
    As part of the loan guarantee, the USDA requires title 
insurance coverage. However, the title insurance company has 
questions about the donation of lands held in fee simple by the 
Tribe. USDA is holding up the loan guarantee until the title 
insurance company agrees to the coverage. This provision will 
address the title company's concern by making clear the Tribe's 
right to convey the land for the hospital in 2005 was legal. 
The title insurance can then be acquired and the USDA loan 
guarantee secured.
    The title insurance company's questions arise from the 
Indian Non-Intercourse Act, 25 U.S.C. Sec. 177, which prohibits 
the sale, grant or lease of land from any Indian nation without 
the consent of the federal government. The title insurance 
company will not issue coverage until either the Bureau of 
Indian Affairs (BIA) commits in writing that they will not 
enforce the Indian Non-Intercourse Act or Congress approves the 
land transfer through legislation. Current Administration 
policy is that the Non-Intercourse Act does not grant the 
Secretary of the Interior the authority to approve private 
(fee) land sales without direct authorization from Congress. 
With this legislation Congress authorizes the land transaction.

                     MORONGO TRIBE LEASE EXTENSION

    The Morongo Band of Mission Indians' Reservation is located 
on approximately 36,000 acres of land, bisected by the east-
west I-10 corridor near Banning, California. In 2002, the tribe 
began a program to develop an industrial park using parcels of 
land south of Interstate 10. To date, the Band has been 
successful in securing a long-term lease agreement with the 
Nestle Company and one of its subsidiary units, Arrowhead 
Water, for the production and bottling of water for personal 
consumption. However, the Band believes it necessary to have 
the ability to enter into lease agreements for periods longer 
than their current authorized term of 25 years in order to 
attract additional tenants and diversify their economy. The 
Band believes that it must seek similar authority in order to 
remain competitive.

                    COW CREEK BAND LEASING AUTHORITY

    The Cow Creek Band has been actively investing in local 
infrastructure and economic development with the goals of 
diversifying their economy and assisting in shaping and 
recreating the local economy. The Band is interested in 
attracting outside businesses and capital to their under-
developed commercial and industrial areas near I-5 in 
southwestern Oregon. However, during previous business 
negotiations, the Band's currently authorized 25-year lease 
term has been a limiting factor. Many businesses have been 
reluctant to make large investments when there is no guarantee 
that they could operate their business beyond 25 years. Most 
other tribes located in Oregon have the authority to enter into 
99-year leases, and the Band believes they are at a 
disadvantage.

NEW SETTLEMENT COMMON STOCK ISSUED TO DESCENDANTS, LEFT-OUTS AND ELDERS

    Pursuant to the Alaska Native Claims Settlement Act 
(ANCSA), Alaska Natives born on or before December 18, 1971, 
were enrolled to one of thirteen Regional Corporations as 
shareholders, and to the village, urban and group corporations 
in which they lived or to which they had an historical, 
cultural, and familial tie (collectively ``Alaska Native 
Corporations'').
    In 1988, ANCSA was amended to allow Alaska Native 
Corporations to authorize the issuance of shares of settlement 
common stock, with or without consideration, to descendants of 
the original shareholders born after December 18, 1971, missed 
enrollees, and Elders.
    Shares issued pursuant to this enabling authority can be 
subjected to a variety of terms, conditions and restrictions as 
may be specified in an amendment to the corporation's Article 
of Incorporation or in a resolution approved by the board of 
directors pursuant to authority expressly vested in the board 
by the amendment. The amendment enacted in 1988 enumerated, 
without limitation, a few such terms, conditions and 
restrictions which might be considered in issuing such stock. 
In response to requests from Alaska Native Corporations for 
specific congressional sanction of two additional terms, 
conditions and restrictions that can be placed in this stock, 
this amendment to ANCSA expressly authorizes corporations to 
limit or eliminate the voting rights of the shares and to 
prohibit the transfer of these shares by inter vivos gift. This 
provision is not in any way intended to limit the terms, 
conditions and restrictions which have been or may in the 
future be placed on these shares under the authority granted by 
the 1988 amendments to the ANCSA.
    This section was revised by the Manager's Amendment to 
eliminate certain changes to ANCSA governing the transfer and 
alienation of Settlement Common Stock which were determined to 
be redundant.

                           ADMISSIONS POLICY

    Section 8 codifies a December 5, 2006, en banc decision by 
the United States Court of Appeals for the Ninth Circuit that a 
private school can maintain its admissions policy. The school 
provides all of its services to its students through a private 
trust.
    This section was added by the Manager's Amendment.

                     INDIAN LAND CONSOLIDATION ACT

    The American Indian Probate Reform Act (AIPRA) was enacted 
on October 27, 2004. AIPRA amended the Indian Land 
Consolidation Act (ILCA) by creating a uniform probate code 
applicable to individual Indian trust and restricted lands 
subject to certain exceptions set forth in the Act.
    One important goal of AIPRA was to assure that the interest 
of an intestate decedent Indian in permanent improvements 
attached to a tract of trust or restricted land that was also 
in the estate of the decedent would descend to the same heir or 
heirs who inherited the underlying trust or restricted land. 
The approach under current law is to define the term ``land'' 
in the ILCA definition section (25 U.S.C. Sec. 2201) in such a 
way that ``land'' includes permanent improvements for this 
purpose. This approach has led to some uncertainty as to the 
treatment of permanent improvements in the Probate Code and 
calls for a more direct approach to dealing with this kind of 
property.
    Accordingly, section 9 of the bill would address this 
matter of permanent improvements by providing that (1) for 
intestate disposition, a decedent's interest in permanent 
improvements attached to trust or restricted land that is 
included in the decedent's estate descends to the same heir or 
heirs who inherit the underlying land, and (2) for testate 
disposition, establishing a presumption that a devise of trust 
or restricted land in a will includes any interest of the 
testator in permanent improvements attached to that land, 
absent express language to the contrary in the will.
    Section 9, among other things, would also: (1) clarify that 
the 5% threshold applicable to non-consensual purchase of small 
interests is measured against the decedent's interest in the 
land immediately preceding death rather than the interest 
descending to a particular heir; (2) simplify the purchase 
option at probate and limit the eligible purchasers in non-
consensual probate purchases of very small interests to the 
Secretary and, where the interest would be passing by intestate 
succession to a non-member, the Indian tribe; and (3) clarify 
that the ``Owner-Managed Interests'' section of ILCA (25 U.S.C. 
2220) is applicable to sole owners as well as co-owners.
    This section was added by the Manager's Amendment.

                       Summary of the Amendments

    At its September 23, 2008 business meeting, the Committee 
adopted a Managers Amendment to H.R. 5680. The Manager's 
Amendment revises section 7 and adds sections 8 and 9. The 
amendments are explained in the section above.

          Section-by-Section Analysis of H.R. 5680 as Amended

Sec. 1. Table of contents

    Section 1 lists the table of contents of the bill.

Sec. 2. Colorado River Indian Tribes

    Section 2 allows the Secretary of the Interior to make an 
annual disbursement to the Colorado River Indian Tribes, 
subject to amounts provided in subsequent appropriations Acts. 
Funds disbursed under this section shall be used to fund the 
Office of the Colorado River Indian Tribes Reservation Energy 
Development. In each year, the funds shall not be less than 
$200,000 and not to exceed $350,000.

Sec. 3. Gila River Indian Community contracts

    Section 3 clarifies that construction contracts are 
included in those to which the Gila River Indian Community is 
authorized to enter into agreements for binding arbitration.

Sec. 4. Land and interests of the Sault Ste. Marie Tribe of Chippewa 
        Indians of Michigan

    Section 4 clarifies the right of the Sault Ste. Marie Tribe 
of Chippewa Indians of Michigan to transfer land owned by the 
Tribe in fee simple status.

Sec. 5. Morongo Band of Mission Indians lease extension

    Section 5 amends the Indian Long-Term Leasing Act, 25 
U.S.C. 415(a), to authorize the Morongo Band of Mission Indians 
to lease lands held in trust for up to 50 years. Currently, the 
Indian Long-Term Leasing Act authorizes tribes to enter into 
25-year leases, with the option to renew for an additional 25 
years.

Sec. 6. Cow Creek Band of Umpqua Tribe of Indians leasing authority

    Section 6 amends the Indian Long-Term Leasing Act, 25 
U.S.C. 415(a), to authorize the Cow Creek Band of Umpqua 
Indians to lease lands held in trust for up to 99 years. 
Currently, the Indian Long-Term Leasing Act authorizes tribes 
to enter into 25-year leases, with the option to renew for an 
additional 25 years.

Sec. 7. New settlement common stock issued to descendants, left-outs, 
        and elders

    Section 7 would amend the Alaska Native Claims Settlement 
Act to expressly authorize Alaska Native Corporations to limit 
or eliminate the voting rights of settlement common stock 
shares issued to descendants of the original shareholders born 
after December 18, 1971, missed enrollees, and Elders and to 
prohibit the transfer of these shares by inter vivos gift.

Sec. 8. Admissions policy

    Section 8 codifies that a private school can maintain its 
admission's policy as upheld by case number 04-15044 of the 
United States Court of Appeals for the Ninth Circuit (December 
5, 2006). The effective date of this section is December 5, 
2006.

Sec. 9. Indian Land Consolidation Act

    Section 9 would amend various provisions of the Indian Land 
Consolidation Act (ILCA). Section 9(a) would amend the 
definitions section of ILCA (25 U.S.C. 2201) by making 
technical and clarifying changes to the definition of `trust or 
restricted lands' and to the definition of `land' (insofar as 
it pertains to permanent improvements).
    Section 9(c) would amend the Indian Probate Code of ILCA 
(25 U.S.C. 2206), by, among other things--
          (1) providing for intestate and testamentary 
        treatment of permanent improvements attached to 
        individual Indian trust or restricted land under 
        section 207 of ILCA;
          (2) providing a tribal ``opt-out'' of the current 
        rule in the Probate Code against devising Indian 
        Reorganization Act (IRA) reservation lands to non-
        Indians by allowing the tribe to pass a resolution 
        requesting the Secretary of the Interior to follow the 
        rule otherwise applicable to non-IRA reservations 
        (which allows such devises);
          (3) simplifying the process relating to the purchase 
        option at probate by allowing the heir or surviving 
        spouse to choose which of the eligible bidders may 
        purchase the interest, without holding an auction;
          (4) clarifying that the 5% threshold applicable to 
        the non-consensual purchase of small interests during 
        probate is to be measured against the decedent's 
        interest in the land immediately before death as 
        opposed to the interest passing to a particular heir; 
        and
          (5) limiting the eligible purchasers in non-
        consensual probate purchases of very small interests to 
        the Secretary, and, where the interest would be passing 
        by intestate succession to a non-member, the Indian 
        tribe.
    Section 9(e) would amend the ``Owner-Managed Interests'' 
section of ILCA (25 U.S.C. 2220) to clarify that that section 
is applicable to sole owners in addition to co-owners.
    Section 9(f) provides that (1) the amendments made to the 
testamentary disposition section of ILCA by this bill will not 
apply to any will that was executed before the date that is one 
year after the date of enactment of this Act, and (2) the 
amendments made to the small undivided interests section of 
ILCA by this bill shall not apply to or affect any sale of such 
interests that was completed before the date of enactment of 
this bill.

                          Legislative History

    H.R. 5680 was introduced by Representative Grijalva (D-AZ) 
on April 2, 2008. The House Committee on Natural Resources held 
a hearing on April 9, 2008. The Department of the Interior 
testified at this hearing. A number of changes were made to the 
bill in response to the Department's testimony.
    On May 15, 2008, the House Committee on Natural Resources 
ordered the bill reported by unanimous consent. On June 18, 
2008, the House of Representatives passed the bill by a voice 
vote.
    On June 19, 2008, H.R. 5680 was received in the Senate and 
referred to the Committee on Indian Affairs. On September 23, 
2008, the Committee held an open business meeting to consider 
H.R. 5680 as well as other legislation. A Managers Amendment to 
H.R. 5680 was offered. The Committee approved H.R. 5680, as 
amended, by voice vote.

            Committee Recommendation and Tabulation of Vote

    At an open business meeting held September 23, 2008, the 
Committee on Indian Affairs, by a voice vote, adopted H.R. 
5680, with an amendment and ordered the bill favorably reported 
to the Senate, with the recommendation that the Senate do pass 
H.R. 5680 as reported.

                   Cost and Budgetary Considerations

    The cost estimate for H.R. 5680, as prepared by the 
Congressional Budget Office (CBO), is set forth below.
    CBO estimates that this bill will have no significant 
impact on the federal budget. Passage of H.R. 5680 would 
increase direct spending by roughly $300,000 annually but would 
not affect revenues.

H.R. 5680--A bill to amend certain laws relating to Native Americans, 
        and for other purposes

    H.R. 5680 would amend various laws concerning Native 
Americans. CBO estimates that implementing this legislation 
would have no significant impact on the federal budget. 
Enacting H.R. 5680 would increase direct spending by roughly 
$300,000 annually but would not affect revenues.
    H.R. 5680 contains no intergovernmental or private-sector 
mandates as defined in the Unfunded Reform Mandates Act and 
would impose no costs on state, local, or tribal governments. 
The provisions would benefit several Indian tribes.
    The bill would authorize the Secretary of the Interior to 
make payments of between $200,000 and $350,000 annually to the 
reservation of Colorado River Indian Tribes for a new local 
energy department. The payments would be made from receipts 
earned from the sale of electricity generated by the federally 
owned Colorado River power system on that reservation.
    Under current law, such receipts from electricity sales--an 
estimated $10 million a year--may be used without further 
appropriation to operate and maintain generating facilities, 
transmission lines, and other infrastructure. Under the bill, 
receipts collected in excess of amounts needed for those 
purposes would be available, also without further 
appropriation, for payments to the tribe. Assuming that 
receipts will be available for the new energy department, CBO 
estimates that the additional direct spending under the bill 
would total around $300,000 a year.
    Other sections of the bill would have no significant impact 
on the federal budget. Those sections would:
           Authorize the Secretary to take lands into 
        trust for the Miccosukee Tribe of Indians of Florida;
           Allow certain tribes to lease lands held in 
        trust for more than 25-year terms; and
           Permit the Sault Ste. Marie Tribe of 
        Chippewa Indians of Michigan to lease, transfer, or 
        convey, without the approval of the Secretary, any 
        interest in land not held in trust by the United 
        States.
    The CBO staff contact for this estimate is Leigh Angres. 
The estimate was approved by Theresa Gullo, 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 evaluate 
the regulatory paperwork impact that would be incurred in 
implementing this legislation. The Committee has concluded that 
enactment of H.R. 5680 will create only de minimis regulatory 
or paperwork burdens.

                        Executive Communication

    The Committee has not received an official communication 
from the Administration of the bill as amended.

                        Changes in Existing Law

    In compliance with subsection 12 of rule XXVI of the 
Standing Rules of the Senate, the Committee states that changes 
in existing law made by the bill, as reported, are shown as 
follows (existing law proposed to be omitted is enclosed in 
black brackets, new matter is printed in italic, existing law 
in which no change is proposed is shown in roman):

                         ACT OF AUGUST 9, 1955

AN ACT To authorize the leasing of restricted Indian lands for public, 
religious, educational, recreational, residential, business, and other 
            purposes requiring the grant of long-term leases

    Be it enacted by the Senate and House of Representatives of 
the United States of America in Congress assembled, That (a) 
any restricted Indian lands, whether tribally or individually 
owned, may be leased by the Indian owners, with the approval of 
the Secretary of the Interior, for public, religious, 
educational, recreational, residential, or business purposes, 
including the development or utilization of natural resources 
in connection with operations under such leases, for grazing 
purposes, and for those farming purposes which require the 
making of a substantial investment in the improvement of the 
land for the production of specialized crops as determined by 
said Secretary. All leases so granted shall be for a term of 
not to exceed twenty-five years, except leases of land located 
outside the boundaries of Indian reservations in the State of 
New Mexico, leases of land on the Agua Caliente (Palm Springs) 
Reservation, the Dania Reservation, the Pueblo of Santa Ana 
(with the exception of the lands known as the `Santa Ana Pueblo 
Spanish Grant'), the reservation of the Confederated Tribes of 
the Warm Springs Reservation of Oregon, and lands held in trust 
for the Cow Creek Band of Umpqua Tribe of Indians, the Moapa 
Indian reservation, the Swinomish Indian Reservation, the 
Southern Ute Reservation, the Fort Mojave Reservation, the 
reservation of the Confederated Tribes of the Umatilla Indian 
Reservation, the Burns Paiute Reservation, the Kalispel Indian 
Reservation, the pueblo of Cochiti, the pueblo of Pojoaque, the 
pueblo of Tesuque, the pueblo of Zuni, the Hualapai 
Reservation, the Spokane Reservation, the San Carlos Apache 
Reservation, the Yavapai-Prescott Community Reservations, the 
Pyramid Lake Reservation, the Gila River Reservation, the 
Soboba Indian Reservation, the Viejas Indian Reservation, the 
Tulalip Indian Reservation, the Navajo Reservation, the Cabazon 
Indian Reservation, the Muckleshoot Indian Reservation and land 
held in trust for the Muckleshoot Indian Tribe, the Mille Lacs 
Reservation with respect to a lease between an entity 
established by the Mille Lacs Band of Chippewa Indians and the 
Minnesota Historical Society, leases of the lands comprising 
the Moses Allotment Numbered 8 and the Moses Allotment Numbered 
10, Chelan County, Washington, and lands held in trust for the 
Las Vegas Paiute Tribe of Indians, and lands held in trust for 
the Twenty-nine Palms Band of Luiseno Mission Indians, and 
lands held in trust for the Reno Sparks Indian Colony, lands 
held in trust for the Torres Martinez Desert Cahuilla Indians, 
lands held in trust for the Guidiville Band of Pomo Indians of 
the Guidiville Indian Rancheria, lands held in trust for the 
Confederated Tribes of the Umatilla Indian Reservation, lands 
held in trust for the Confederated Tribes of the Warm Springs 
Reservation of Oregon, lands held in trust for the Cherokee 
Nation of Oklahoma, lands held in trust for the Fallon Paiute 
Shoshone Tribes, lands held in trust for the Pueblo of Santa 
Clara, land held in trust for the Yurok Tribe, land held in 
trust for the Hopland Band of Pomo Indians of the Hopland 
Rancheria, lands held in trust for the Yurok Tribe, lands held 
in trust for the Hopland Band of Pomo Indians of the Hopland 
Rancheria, lands held in trust for the Confederated Tribes of 
the Colville Reservation, lands held in trust for the Cahuilla 
Band of Indians of California, lands held in trust for the 
confederated Tribes of the Grand Ronde Community of Oregon, and 
the lands held in trust for the Confederated Salish and 
Kootenai Tribes of the Flathead Reservation, Montana, and 
leases to the Devils Lake Sioux Tribe, or any organization of 
such tribe, of land on the Devils Lake Sioux Reservation, which 
may be for a term of not to exceed ninety-nine years, and 
except leases of land held in trust for the Morongo Band of 
Cahuilla Mission Indians of the Morongo Reservation, 
California, which may be for a term not to exceed 50 years, and 
except leases of land for grazing purposes which may be for a 
term not to exceed ten years. Leases for public, religious, 
educational, recreational, residential, or business purposes 
with the consent of both parties may include provisions 
authorizing their renewal for one additional term of not to 
exceed twenty-five years, and all leases and renewals shall be 
made under such terms and regulations as may be prescribed by 
the Secretary of the Interior. Prior to approval of any lease 
or extension of an existing lease pursuant to this section, the 
Secretary of the Interior shall first satisfy himself that 
adequate consideration has been given to the relationship 
between the use of the leased lands and the use of neighboring 
lands; the height, quality, and safety of any structures or 
other facilities to be constructed on such lands; the 
availability of police and fire protection and other services; 
the availability of judicial forums for all criminal and civil 
causes arising on the leased lands; and the effect on the 
environment of the uses to which the leased lands will be 
subject.

           *       *       *       *       *       *       *

    (f) A contract, including a [ lease, affecting ] lease or 
construction contract, affecting land within the Gila River 
Indian Community Reservation may contain a provision for the 
binding arbitration of disputes arising out of such contract. 
Such contracts shall be considered within the meaning of 
`commerce' as defined and subject to the provisions of section 
1 of title 9, United States Code. Any refusal to submit to 
arbitration pursuant to a binding agreement for arbitration or 
the exercise of any right conferred by title 9 to abide by the 
outcome of arbitration pursuant to the provisions of chapter 1 
of title 9, sections 1 through 14, United States Code, shall be 
deemed to be a civil action arising under the Constitution, 
laws or treaties of the United States within the meaning of 
section 1331 of title 28, United States Code.

           *       *       *       *       *       *       *

                  ALASKA NATIVE CLAIMS SETTLEMENT ACT

                             43 U.S.C. 1606

SEC. 7. REGIONAL CORPORATIONS.

           *       *       *       *       *       *       *

    (g)(1) Settlement Common Stock.--
          (A) * * *
          (B)(i) * * *

           *       *       *       *       *       *       *

          [(iii) The amendment authorized by clause (i) may 
        provide that Settlement Common Stock issued to a Native 
        pursuant to such amendment (or stock issued in exchange 
        for such Settlement Common Stock pursuant to subsection 
        (h)(3) or section 37(d)) shall be deemed canceled upon 
        the death of such Native. No compensation for this 
        cancellation shall be paid to the estate of the 
        deceased Native or to any person holding the stock.]
          (iii) Conditions on certain stock--
                  (I) In general.--An amendment under clause 
                (i) may provide that Settlement Common Stock 
                issued to a Native pursuant to the amendment 
                (or stock issued in exchange for that 
                Settlement Common Stock pursuant to subsection 
                (h)(3) or section 29(c)(3)(D)) shall be subject 
                to 1 or more of the conditions described in 
                subclause (II).
                  (II) Conditions.--A condition referred to in 
                subclause (I) is a condition that--
                          (aa) the stock described in that 
                        subclause shall be deemed to be 
                        canceled on the death of the Native to 
                        whom the stock is issued, and no 
                        compensation for the cancellation shall 
                        be paid to the estate of the deceased 
                        Native or any person holding the stock;
                          (bb) the stock shall carry limited or 
                        no voting rights; and
                          (cc) the stock shall not be 
                        transferred by gift under subsection 
                        (h)(1)(C)(iii).

           *       *       *       *       *       *       *

                     INDIAN LAND CONSOLIDATION ACT

                             25 U.S.C. 2201

    Section 202 of the Indian Land Consolidation Act is amended 
as follows:

SEC. 2201. DEFINITIONS.

           *       *       *       *       *       *       *

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

           *       *       *       *       *       *       *

          [(7) ``land'' means any real property, and includes 
        within its meaning for purposes of this chapter 
        improvements permanently affixed to real property;](7) 
        the term `land' means any real property;

                       25 U.S.C. 2204(c)(2)(D)(i)

    Section 205(c)(2)(D)(i) of the Indian Land Consolidation 
Act is amended as follows:
          (III) the owners (including parents of minor owners 
        and legal guardians of incompetent owners) of at least 
        50 percent of the undivided interests in the parcel, 
        but only in cases where the Secretary determines that, 
        based on the final appraisal prepared pursuant to 
        subparagraph (F), any 1 owner's total undivided 
        interest in the parcel (not including the interest of 
        an Indian tribe or that of the owner requesting the 
        partition) has a value in excess of $1,500.
          Any consent required by this clause must be in 
        writing and acknowledged before a notary public (or 
        other official authorized to make acknowledgments), and 
        shall be approved by the Secretary unless the Secretary 
        has reason to believe that the consent was obtained as 
        a result of fraud or undue influence.

                             25 U.S.C. 2206

    Section 207 of the Indian Land Consolidation Act is amended 
as follows:
    (a)(2)(D) Intestate Descent of Small Fractional Interests 
in Land.--
          (i) General rule.--Notwithstanding subparagraphs (A) 
        and (B), and subject to any applicable Federal law, any 
        trust or restricted interest in land in the decedent's 
        estate that is not disposed of by a valid will and 
        represents less than 5 percent of the entire undivided 
        ownership of the parcel of land of which such interest 
        is a part, as evidenced by the decedent's estate 
        inventory at the time of the heirship determination, 
        shall descend in accordance with clauses (ii) through 
        [(iv)](v). * * *
          (iv) * * *
                  (II) the governing body of the Indian tribe 
                with jurisdiction over an interest in trust or 
                restricted land that is subject to the 
                provisions of this subparagraph may adopt a 
                rule of intestate descent applicable to such 
                interest that differs from the order of 
                [decedent] descent set forth in clause (iii). 
                The Secretary shall apply such rule to the 
                interest in distributing the decedent's estate, 
                but only if-- * * *
          [(v) Rule of construction.--This subparagraph shall 
        not be construed to limit a person's right to devise 
        any trust or restricted interest by way of a valid will 
        in accordance with subsection (b) of this section.]
          (v) Effect of Subparagraph.--Nothing in this 
        subparagraph limits the right of any person to devise 
        any trust or restricted interest pursuant to a valid 
        will in accordance with subsection (b). * * *

           *       *       *       *       *       *       *

    (a) Nontestamentary Disposition.--

           *       *       *       *       *       *       *

          (6) Intestate descent of permanent improvements.--
                  (A) Definition of covered permanent 
                improvement.--In this paragraph, the term 
                ``covered permanent improvement'' means a 
                permanent improvement (including an interest in 
                such an improvement) that is--
                          (i) included in the estate of a 
                        decedent; and
                          (ii) attached to a parcel of trust or 
                        restricted land that is also, in whole 
                        or in part, included in the estate of 
                        that decedent.
                  (B) Rule of descent.--Except as otherwise 
                provided in a tribal probate code approved 
                under section 206 or a consolidation agreement 
                approved under subsection (j)(9), a covered 
                permanent improvement in the estate of a 
                decedent shall--
                          (i) descend to each eligible heir to 
                        whom the trust or restricted interest 
                        in land in the estate descends pursuant 
                        to this subsection; or
                          (ii) pass to the recipient of the 
                        trust or restricted interest in land in 
                        the estate pursuant to a renunciation 
                        under subsection (j)(8).
                  (C) Application and effect.--The provisions 
                of this paragraph apply to a covered permanent 
                improvement--
                          (i) even though that covered 
                        permanent improvement is not held in 
                        trust; and
                          (ii) without altering or otherwise 
                        affecting the non-trust status of such 
                        a covered permanent improvement.

           *       *       *       *       *       *       *

    (b)(2) Devise of Trust or Restricted Land as a Life Estate 
or in Fee.--
                  (B) Indian reorganization act lands.--
                          [Any interest](i) In general._Subject 
                        to clauses (ii) and (iii), any interest 
                        in trust or restricted land that is 
                        subject to section 464 of this title, 
                        may be devised only in accordance 
                        with--
                                  [(i)](I) that section;
                                  [(ii)](II) subparagraph 
                                (A)(i); or
                                  [(iii)](III) paragraph 
                                (1)(A)[;].
                          (ii) Exception.--
                                  (I) In general.--
                                Nothwithstanding clause (i), in 
                                any case in which a resolution, 
                                law or other duly adopted 
                                enactment of the Indian tribe 
                                with jurisdiction over the land 
                                of which as interest described 
                                in clause (i) is a part 
                                requests the Secretary to apply 
                                subparagraph (A)(ii) to devises 
                                of trust or restricted land 
                                under the jurisdiction of the 
                                Indian tribe, the interest may 
                                be devised in fee in accordance 
                                with subparagraph (A)(ii).
                                  (II) Effect.--Subclause (I) 
                                shall apply with respect to a 
                                devise of a trust or restricted 
                                interest in land by any 
                                decedent who dies on or after 
                                the date on which the 
                                applicable Indian tribe adopts 
                                the resolution, law, or other 
                                enactment described in 
                                subclause (I), regardless of 
                                the date on which the devise is 
                                made.
                                  (III) Notice of request.--An 
                                Indian tribe shall provide to 
                                the Secretary a copy of any 
                                resolution, law, or other 
                                enactment of the Indian tribe 
                                that requests the Secretary to 
                                apply subparagraph (A)(ii) to 
                                devises of trust or restricted 
                                land under the jurisdiction of 
                                the Indian tribe.
                          [provided that nothing] (iii) 
                        Effect._Except as provided in clause 
                        (ii), nothing in this section or in 
                        section 464 of this title, shall be 
                        construed to authorize the devise of 
                        any interest in trust or restricted 
                        land that is subject to section 464 of 
                        this title to any person as a fee 
                        interest under subparagraph (A)(ii).

           *       *       *       *       *       *       *

    (h) Rules of Interpretation.--
          (1) Construction that will passes all property.--
                  [A will](A) In general._A will shall be 
                construed to apply to all trust and restricted 
                land and trust personalty which the testator 
                owned at his death, including any such land or 
                personalty acquired after the execution of his 
                will.
                  (B) Permanent improvements.--Except as 
                otherwise expressly provided in the will, a 
                devise of a trust or restricted interest in a 
                parcel of land shall be presumed to include the 
                interest of the testator in any permanent 
                improvements attached to the parcel of land.
                  (C) Application and effect.--The provisions 
                of this paragraph apply to a covered permanent 
                improvement--
                          (i) even though that covered 
                        permanent improvement is not held in 
                        trust; and
                          (ii) without altering or otherwise 
                        affecting the non-trust status of such 
                        a covered permanent improvement.

           *       *       *       *       *       *       *

    (i)(4) Joint Tenants, Joint Owners, and Joint Obligees.--

           *       *       *       *       *       *       *

                  (C) Notwithstanding any other provision of 
                this subsection, the decedent's trust or 
                restricted [interest land]interest in land or 
                trust personalty that is held in a joint 
                tenancy with the right of survivorship shall be 
                severed from the joint tenancy as though the 
                property held in the joint tenancy were to be 
                severed and distributed equally among the joint 
                tenants and the decedent's interest shall pass 
                to his estate; the remainder of the interests 
                shall remain in joint tenancy with right of 
                survivorship among the surviving joint tenants.

           *       *       *       *       *       *       *

    (j)(2)(A) Spouses.--

           *       *       *       *       *       *       *

          (ii) Exception.--Clause (i) shall not apply to a 
        trust or restricted [interest land]interest in land 
        where--

           *       *       *       *       *       *       *

    (k) Notification to Landowners.--After receiving a written 
request by any owner of a trust or restricted interest in land, 
the Secretary shall provide to such landowner the following 
information with respect to each tract of trust or restricted 
land in which the landowner has an interest:

           *       *       *       *       *       *       *

    (o) Purchase Option at Probate.--

           *       *       *       *       *       *       *

          [(3) Request to purchase; auction; consent 
        requirements.--No sale](3) Request to purchase; consent 
        requirements; multiple requests to purchase.--
                  (A) In general._No sale of an interest in 
                probate shall occur under this subsection 
                unless--
                          [(A)](i) an eligible purchaser 
                        described in paragraph (2) submits a 
                        written request to purchase prior to 
                        the distribution of the interest to 
                        heirs or devisees of the decedent and 
                        in accordance with any regulations of 
                        the Secretary; and
                          [(B)](ii) except as provided in 
                        paragraph (5), the heirs or devisees of 
                        such interest, and the decedent's 
                        surviving spouse, if any, receiving a 
                        life estate under subparagraph (A) or 
                        (D) of subsection (a)(2) of this 
                        section consent to the sale.
                          [If the Secretary receives more than 
                        1 request to purchase the same 
                        interest, the Secretary shall sell the 
                        interest by public auction or sealed 
                        bid (as determined by the Secretary) at 
                        not less than the appraised fair market 
                        value to the eligible purchaser 
                        submitting the highest bid.]
                  (B) Multiple requests to purchase.--Except 
                for interest purchased pursuant to paragraph 
                (5), if the Secretary receives a request with 
                respect to an interest from more than 1 
                eligible purchaser under paragraph (2), the 
                Secretary shall sell the interest to the 
                eligible purchaser that is selected by the 
                applicable heir, devisee, or surviving spouse.
          (4) Appraisal and notice.--Prior to the sale of an 
        interest pursuant to this subsection, the Secretary 
        shall--
                  (A) appraise the interest at its fair market 
                value in accordance with this chapter; and
                  (B) provide eligible heirs, other devisees, 
                and the Indian tribe with jurisdiction over the 
                interest with written notice, sent by first 
                class mail, that the interest is available for 
                purchase in accordance with this subsection[; 
                and].
                  [(C) if the Secretary receives more than 1 
                request to purchase the interest by a person 
                described in subparagraph (B), provide notice 
                of the manner (auction or sealed bid), time and 
                place of the sale, a description, and the 
                appraised fair market value, of the interest to 
                be sold--
                          (i) to the heirs or other devisees 
                        and the Indian tribe with jurisdiction 
                        over the interest, by first class mail; 
                        and
                          (ii) to all other eligible 
                        purchasers, by posting written notice 
                        in at least 5 conspicuous places in the 
                        vicinity of the place of hearing.]
          (5) Small undivided interests in indian lands.--
                  (A) In general.--Subject to subparagraph (B), 
                the consent of a person who is an heir or 
                surviving spouse otherwise required under 
                [paragraph (3)(B)]paragraph (3)(A)(ii) shall 
                not be required for the [auction and] sale of 
                an interest at probate under this subsection 
                if--
                          (i) the interest is passing by 
                        intestate succession; [and]
                          (ii) prior to the [auction]sale the 
                        Secretary determines in the probate 
                        proceeding that the [interest passing 
                        to such heir represents], at the time 
                        of death of the applicable decedent, 
                        the interest of the decedent in the 
                        land represented less than 5 percent of 
                        the entire undivided ownership of the 
                        parcel of land as evidenced by the 
                        Secretary's records as of the time the 
                        determination is made[.]; and
                          (iii)(I) the Secretary is purchasing 
                        the interest under the program 
                        authorized under section 213(a)(1); or
                          (II) after receiving a notice under 
                        paragraph (4)(B), the Indian tribe with 
                        jurisdiction over the interest is 
                        proposing to purchase the interest from 
                        an heir or surviving spouse who is not 
                        residing on the property in accordance 
                        with clause (i), and who is not a 
                        member, and is not eligible to become a 
                        member, of that Indian tribe.
                  (B) Exception.--Notwithstanding subparagraph 
                (A), the consent of such heir or surviving 
                spouse shall be required for the sale at 
                probate of the [heir's interest] interest of 
                the heir or surviving spouse if, at the time of 
                the decedent's death, the heir or surviving 
                spouse was residing on the parcel of land of 
                which the interest to be sold was a part.

                           25 U.S.C. 2212(a)

    Section 213(a) of the Indian Land Consolidation Act is 
amended as follows:
          (1) In general.--The Secretary may acquire, at the 
        discretion of the Secretary and with the consent of the 
        owner, or from an heir during probate in accordance 
        with [section 207(p)]section 207(o) of this title and 
        at fair market value, any fractional interest in trust 
        or restricted lands.

                             25 U.S.C. 2220

    Section 221 of the Indian Land Consolidation Act is amended 
as follows:
    (a) Purpose.--The purpose of this section is to provide a 
means for the owner or co-owners of trust or restricted 
interests in a parcel of land to enter into surface leases of 
such parcel for certain purposes without approval of the 
Secretary.

           *       *       *       *       *       *       *

                                  
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