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[Senate Report 114-207]
[From the U.S. Government Publishing Office]

                                                      Calendar No. 364
114th Congress     }                                    {       Report
                                 SENATE
 2d Session        }                                    {      114-207

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

 
  TO PROVIDE FOR INDIAN TRUST ASSET MANAGEMENT REFORM, AND FOR OTHER 
                                PURPOSES

                                _______
                                

                February 8, 2016.--Ordered to be printed

                                _______
                                

      Mr. Barrasso, from the Senate Committee on Indian Affairs, 
                        submitted the following

                              R E P O R T

                         [To accompany S. 383]

    The Senate Committee on Indian Affairs, to which was 
referred the bill (S. 383) to provide for Indian trust asset 
management reform, and for other purposes, having considered 
the same, reports favorably thereon with an amendment (in the 
nature of a substitute) and recommends that the bill, as 
amended, do pass.

                                PURPOSE

    The purpose of S. 383, as amended, is to reaffirm the 
Federal government's fiduciary trust responsibilities to Indian 
tribes. S. 383, as amended, will establish a demonstration 
project to give Indian tribes, on a voluntary basis, the 
opportunity to manage their trust assets. These Indian trust 
assets are currently held in trust and managed by the Federal 
government. This bill will also authorize the Secretary of the 
Department of the Interior to transition the functions of the 
Office of the Special Trustee for American Indians to one or 
more appropriate agencies, offices, or bureaus within the 
Department of the Interior.

                               BACKGROUND

    There exists a Federal trust responsibility through 
treaties, statutes, and historical relations, to protect and 
support Indian tribes and individual Indians. The United States 
holds in trust over 55 million surface acres and 57 million 
acres of subsurface minerals for American Indians and Alaska 
Natives.\1\ The Department of the Interior (DOI or Department) 
manages more than 124,300 leases and approximately $4.9 billion 
in trust funds for Indian tribes through the Office of the 
Special Trustee for American Indians.\2\ According to the 
Department, there is nothing comparable to this in the 
commercial trust sector.\3\
---------------------------------------------------------------------------
    \1\U.S. Department of the Interior, Office of the Special Trustee 
for American Indians, About OST, Statistics and Facts, available at 
http://www.doi.gov/ost/about_us/statistics-and-facts.cfm.
    \2\Id.
    \3\Id.
---------------------------------------------------------------------------

Creation of the Office of the Special Trustee for American Indians

    The Indian trust was developed from a series of 
Congressional actions, beginning with the General Allotment Act 
of 1887 (Dawes Act).\4\ Due to policy changes related to the 
Indian trust, significant confusion developed over time. The 
American Indian Trust Fund Management Reform Act of 1994 (1994 
Act) was enacted in an attempt to address the confusion.\5\ 
While the 1994 Act did provide some clarity, ``issues of 
whether the Indian trust is governed by the Administrative 
Procedures Act or by the common law of trusts'' continue to be 
litigated, and Indian trust issues still remain unresolved.\6\
---------------------------------------------------------------------------
    \4\General Allotment (Dawes) Act, Act of Feb. 8, 1887, ch. 119, 24 
Stat. 388 (codified as 25 U.S.C. Sec. 331 (1887)) (repealed 1934).
    \5\See generally, U.S. Department of the Interior, Office of the 
Special Trustee for American Indians, About OST, available at http://
www.doi.gov/ost/about_us/index.cfm.
    \6\Id.
---------------------------------------------------------------------------
    The 1994 Act created the Office of the Special Trustee for 
American Indians (OST) within the Department, and was the first 
major step taken by Congress to reform the Federal government's 
management of Indian trust funds.\7\ Under the 1994 Act, 
``[t]he OST generally oversees the reform of the [DOI] 
management of Indian trust assets, the direct management of 
Indian trust funds, establishment of an adequate trust fund 
management system, and support of [D]epartment claims 
settlement activities related to the trust funds.''\8\ The OST 
was intended to improve the accountability and management of 
Indian trust funds and Individual Indian Money (IIM) accounts 
held in trust by the Federal government.\9\
---------------------------------------------------------------------------
    \7\American Indian Trust Fund Reform Act of 1994, Pub. L. No. 103-
412, 108 Stat. 4239, 25 U.S.C. 4001 et seq. (1994).
    \8\Carol Hardy Vincent et al., Interior, Environment, and Related 
Agencies: FY 2007 Appropriations, Congressional Research Service, Mar. 
7, 2007 (RL33399).
    \9\See, U.S. Department of the Interior, Office of the Special 
Trustee for American Indians, About OST, available at http://doi.gov/
ost/about_us/index.cfm. 
---------------------------------------------------------------------------

Reforming the management of Indian trust assets

    In past Congressional hearings, the issue of whether the 
OST has failed in its efforts to oversee the implementation of 
Indian trust asset management reforms has been raised.\10\ 
There is concern that there is insufficient oversight over the 
OST and that, contrary to Congressional intent, the OST's 
involvement may have caused greater confusion, burdens, and 
delays in the processing of trust asset transactions for Indian 
tribes.\11\
---------------------------------------------------------------------------
    \10\See, e.g., U.S. Senate Committee on Indian Affairs, Hearing on 
Backlogs at the Department of the Interior: Land into Trust 
Acquisitions; Environmental Impact Statements; Probate; Appraisals and 
Lease Approvals Before the S. Comm. on Indian Affairs, 110th Cong. 
(2007); Senate Committee on Indian Affairs, Hearing on Where's the 
Trustee? U.S. Department of the Interior Backlogs Prevents Tribes From 
Using Their Lands Before the S. Comm. on Indian Affairs, 111th Cong. 
(2009).
    \11\Id.
---------------------------------------------------------------------------
    Another concern has also been raised that the OST has 
outlived its statutory purpose and is performing functions 
outside the scope of its authority.\12\ When Congress 
established the OST, they acknowledged that the office would be 
temporary in order for the Department to reform its management 
system of Indian trust assets. The major reforms that the OST 
was tasked with were completed years ago.\13\ The Government 
Accountability Office (GAO) stated that the ``OST estimates 
that almost all key reforms needed to develop an integrated 
trust management system and to provide improved trust services 
will be completed by November 2007.''\14\
---------------------------------------------------------------------------
    \12\Id.
    \13\See, The Office of the Special Trustee Has Implemented Several 
Key Trust Reforms Required by the 1994 Act, but Important Decisions 
about its Future Remain, Government Accountability Office, GAO-07-104 
(Dec. 2006).
    \14\Id.
---------------------------------------------------------------------------
    The Office of Trust Services--a separate office within the 
DOI under the Bureau of Indian Affairs--also has trust-related 
responsibilities to Indian tribes and individual Indians.\15\ 
There are six divisions within the Office of Trust Services 
that provide assistance to Indian trust owners. The Office of 
Trust Services oversees the management, development, and 
protection of trust and restricted lands, natural resources, 
and real estate services for Indian tribes.\16\ There is 
concern that functions of the Office of Trust Services overlap 
with those of the OST, creating confusion and unnecessary 
redundancies within the Department.\17\ The OST manages Indian 
trust funds while the Office of Trust Services manages Indian 
trust land and non-monetary trust resources. Although both 
offices are within the Department, there is little to no 
communication or coordination between the OST and the Office of 
Trust Services.
---------------------------------------------------------------------------
    \15\See, U.S. Department of the Interior, Bureau of Indian Affairs, 
Who We Are, available at http://bia/gov/WhoWeAre/BIA/OTS.
    \16\The six divisions are: Real Estate Services, Land Titles and 
Records, Probate, Natural Resources, Forestry and Wildland Fire 
Management, and Water and Power.
    \17\See, e.g., House Committee on Natural Resources, Subcommittee 
on Indian, Insular, and Alaska Native Affairs, Legislative Hearing on 
H.R. 329, H.R. 521, H.R. 812, 114th Cong. (2015).
---------------------------------------------------------------------------

                          NEED FOR LEGISLATION

    The Federal government has mismanaged Indian trust assets 
continually over the last 40 years. This bill, S. 383, as 
amended, would streamline the Federal government's role in the 
management of Indian trust assets to allow for Indian tribes to 
have greater involvement. Indian tribes would become more self-
determining in the handling of their trust assets and continue 
to strengthen tribal sovereignty. The OST was not meant to be a 
permanent office. Directing the Secretary to submit a report to 
Congress that includes a transition plan will inform Congress 
to decide whether the functions of the OST should be 
transitioned to other agencies or bureaus within the 
Department, and will reduce costs, redundancy, and bureaucracy 
once the OST is reformed.

                          LEGISLATIVE HISTORY

114th Congress

    S. 383 was introduced on February 5, 2015, by Senator Mike 
Crapo (R-ID), along with Senator James Risch (R-ID) as an 
original cosponsor. Senator Patty Murray (D-WA) was added as a 
co-sponsor on January 20, 2016. The bill was referred to the 
Senate Committee on Indian Affairs (Committee). The Committee 
held an oversight hearing, ``A Path Forward: Trust 
Modernization and Reform for Indian Lands,'' where the 
substance of S. 383 was discussed. On July 29, 2015, the 
Committee met at a business meeting to consider the bill. One 
amendment was offered and adopted, and the bill, as amended, 
was ordered to be favorably reported to the Senate by voice 
vote.
    The House companion bill, H.R. 812, the Indian Trust Asset 
Reform Act was introduced by Representative Michael K. Simpson 
(R-ID) on February 9, 2015. The original cosponsors are 
Representatives Tom Cole (R-OK) and Denny Heck (D-WA). 
Representatives Suzan K. DelBene (D-WA), Paul A. Gosar (R-AZ), 
Walter B. Jones, Jr. (R-NC), Derek Kilmer (D-WA), Raul R. 
Labrador (R-ID), Cathy McMorris Rodgers (R-WA), Mark Pocan (D-
WI), and David G. Reichert (R-WA) were added as cosponsors. The 
bill was referred to the House Subcommittee on Indian, Insular 
and Alaska Native Affairs (Subcommittee). On April 14, 2015, 
the Subcommittee held a hearing on the bill. The House 
Committee on Natural Resources met at a business meeting to 
consider H.R. 812 on February 3, 2016. One amendment in the 
nature of a substitute was offered and adopted, and the bill, 
as amended, was ordered to be favorably reported to the House 
by unanimous consent.

Previous Congresses

    Since the 107th Congress, there have been numerous bills 
concerning Indian trust asset reform and management introduced 
in the Senate and the House of Representatives beginning with 
S. 2212, the Indian Trust Asset and Trust Fund Management and 
Reform Act of 2002. S. 2212 was introduced by Senator John 
McCain (R-AZ), along with Senators Thomas S. Daschle (D-SD) and 
Tim Johnson (D-SD) as cosponsors. The bill was referred to the 
Committee where a hearing was held on the bill. No further 
action was taken on S. 2212.
    In the 108th Congress, Senator John McCain (R-AZ), along 
with Senators Thomas A. Daschle (D-SD) and Tim Johnson (D-SD) 
introduced S. 175, the Indian Trust Asset and Trust Fund 
Management and Reform Act of 2003. The bill was referred to the 
Committee but no further action took place. During the same 
Congress, Senator John McCain (R-AZ), along with Senators 
Thomas A. Daschle (D-SD), Daniel K. Inouye (D-HI), and Tim 
Johnson (D-SD), introduced S. 1459, the American Indian Trust 
Fund Management Reform Act Amendments Act of 2003. The bill was 
referred to the Committee but no further action took place. The 
House companion bill was H.R. 2981, the American Indian Trust 
Fund Management Reform Act Amendments Act of 2003, introduced 
by Representative Mark Udall (D-CO) and original cosponsor 
Representative Nick J. Rahall, II (D-WV). H.R. 2981 was 
referred to the House Committee on Natural Resources where no 
further action was taken.
    The Indian Trust Reform Act of 2005, S. 1439, was 
introduced by Senator John McCain (R-AZ) with Senator Byron L. 
Dorgan (D-ND) as an original cosponsor in the 109th Congress. 
The bill was referred to the Committee on Indian Affairs where 
three hearings were held on the bill. No further action was 
taken on S. 1439. The House companion bill was H.R 4322, 
introduced by Representative Richard W. Pombo (R-CA), with 
Representative Nick J. Rahall, II (D-WV) as an original 
cosponsor. The bill was referred to the House Committee on 
Resources where no further action was taken on the bill.
    In the 111th Congress, H.R. 4783, the Claims Resolution Act 
of 2010, was enacted and became Public Law 111-291. One of the 
purposes of H.R. 4783 was to settle the 14 year class action 
lawsuit, Elouise Cobell et al. v. Ken Salazar et al.,\18\ by 
resolving claims that the Federal government violated its trust 
duties to individual Indian trust beneficiaries. ``The IIM 
[(Individual Indian Money)] accounts primarily contain money 
collected by the [F]ederal government from farming and grazing 
leases, timber sales, mining, oil and gas production, and other 
activities on trust land, as well as certain per capita 
distributions. The funds in IIM accounts are held in trust by 
the [F]ederal government for the benefit of individual 
Indians.''\19\
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    \18\Elouise Cobell, et al. v. Ken Lee Salazar, et al., 573 F.3d 808 
(2009); 387 U.S. App. D.C. 339 (2009).
    \19\FAQs, Indian Trust Settlement (2015), available at http://
www.indiantrust.com/faq.
---------------------------------------------------------------------------
    During the 112th Congress, Senator Mike Crapo (R-ID), along 
with Senator James E. Risch (R-ID), introduced S. 3679, the 
Indian Trust Asset Reform Act. The bill was referred to the 
Committee where no further action was taken. The House 
companion bill was H.R. 6617, the Indian Trust Asset Reform 
Act, introduced by Representative Michael K. Simpson (R-ID). 
H.R. 6617 was referred to the House Subcommittee on Indian and 
Alaska Native Affairs where no further action was taken. These 
bills, and subsequent related legislation, were based on two 
titles of S. 1439/H.R. 4322 as introduced in the 109th 
Congress: the Indian Trust Asset Demonstration Project and the 
restructuring of the Office of the Special Trustee for American 
Indians. Both are incorporated in S. 383 (114th).
    Senators Mike Crapo (R-ID) and James E. Risch (R-ID) 
introduced S. 165, the Indian Trust Asset Reform Act, in the 
113th Congress. The bill was referred to the Committee and the 
Committee held an oversight hearing, ``Improving the Trust 
System: Continuing Oversight of the Department of the 
Interior's Buy-Back Program,'' where testimony was heard on S. 
165. The Committee took no further action on S. 165. The House 
companion bill, H.R. 409, the Indian Trust Asset Reform Act was 
introduced by Representative Michael K. Simpson (R-ID), with 
Representatives Tom Cole (R-OK) and Raul R. Labrador (R-ID) as 
cosponsors. H.R. 409 was referred to the House Subcommittee on 
Indian and Alaska Native Affairs where a hearing was held on 
the bill but no further action was taken.

                    SUMMARY OF SUBSTITUTE AMENDMENT

    At a Committee business meeting held on July 8, 2015, 
Senator Crapo (R-ID) offered an amendment in the nature of a 
substitute. The amendment was agreed to.
    In addition to technical corrections, the substitute 
amendment clarifies and amends the Findings and Definitions 
sections, and the Titles of the Act. Section 204, Indian Trust 
Asset Management Plan (Plan), is amended to expand what 
functions or activities performed by an Indian tribe can be 
included in the contents of the Plan.
    The substitute amendment removes the Standards and Trust 
Responsibility provisions from the Applicable Laws in section 
204(c) and incorporates the removed subsection into sections 
205 and 206.
    Section 204(e), Approval of Certain Agreements by Indian 
Tribe, shifted to its own section in the substitute amendment, 
section 205, Forest Land Management and Surface Leasing 
Activities. Trust Responsibility in section 205(g) was amended 
to state the United States is not liable for losses sustained 
by an Indian tribe as a result of executing a forest land 
management activity, or by any party to a lease, both pursuant 
to tribal regulations under section 205(b).
    In section 206, Effect of Title, an additional subsection 
(c) is added to further clarify the future liability of the 
Federal government for losses resulting from an Indian tribe 
directing that a transaction or activity be terminated, or 
managed by a lesser standard than the Federal standards in a 
Plan.
    S. 383, as amended, authorizes the contracting and 
compacting of trust asset management for Indian tribes under 
the Indian Self-Determination and Education Assistance Act 
(ISDEAA) (25 U.S.C. 450 et seq.). To further clarify, the 
ISDEAA or its related regulations shall not be affected by this 
Act.
    In section 206(e), Separate Approval, clarifies that an 
Indian tribe may submit tribal regulations that provide for the 
HEARTH Act\20\ treatment of forest management activities for 
review and approval without needing to submit in a Plan.
---------------------------------------------------------------------------
    \20\Helping Expedite and Advance Responsible Tribal Home Ownership 
Act of 2012 (HEARTH ACT), Pub. L. No. 112-151 (2012).
---------------------------------------------------------------------------
    As amended, a new Section 304(c) is added to clarify that 
the transition plan and report required by Section 304 does 
not, by itself, cause the termination of OST. Additional 
revisions are made to sections 301, 305, and 306 for clarity 
and consistency.

       SECTION-BY-SECTION ANALYSIS OF S. 383, AS ORDERED REPORTED

Section 1--Short title; Table of contents

    This section states that the Act may be cited as the 
``Indian Trust Asset Reform Act.''

              TITLE I--RECOGNITION OF TRUST RESPONSIBILITY

Section 101. Findings

    This section sets forth the findings of Congress that--
    There exists a unique relationship between the Federal 
government and the governments of Indian tribes;
    There exists a unique Federal responsibility to Indians;
    Through treaties, statutes, and historical relations with 
Indian tribes, the United States has undertaken a unique trust 
responsibility to protect and support Indian tribes and 
Indians;
    The Fiduciary responsibilities of the United States to 
Indians also are founded in part on specific commitments made 
through written treaties and agreements securing peace, in 
exchange for which Indians have surrendered claims to vast 
tracts of land, which provided legal considerations for 
permanent, ongoing performance of Federal trust duties; and
    The foregoing historic Federal-Tribal relations and 
understandings have benefitted the people of the United States 
as a whole for centuries and have established enduring and 
enforceable Federal obligations to which the national honor has 
been committed.

Section 102. Reaffirmation of policy

    This section reaffirms the fiduciary responsibilities of 
the United States to Indian tribes, including a duty to promote 
tribal self-determination regarding governmental authority and 
economic development.

     TITLE II--INDIAN TRUST ASSET MANAGEMENT DEMONSTRATION PROJECT

Section 201. Short title

    This section states that this title may be cited as the 
``Indian Trust Asset Management Demonstration Project Act of 
2015.''

Section 202. Definitions

    This section sets forth definitions--
    ``Indian tribe'' has the meaning given the term in the 
Indian Self Determination and Education Assistance Act (25 
U.S.C. 450b);
    ``Project'' means the Indian trust asset demonstration 
project established under section 203(a); and
    ``Secretary'' means the Secretary of the Interior.

Section 203. Establishment of demonstration project; Selection of 
        participating Indian tribes

    Section 203(a) states that the Secretary shall establish 
and carry out the Indian trust asset management demonstration 
project, in accordance with this title.
    Section 203(b) provides that an Indian tribe shall be 
eligible to participate in the Project if the Indian tribe 
submits to the Secretary an application under subsection (c); 
and if the Secretary approves the application of the Indian 
tribe. This section also provides notice requirements for the 
Secretary to provide each approved Indian tribe to participate 
in the Project.
    Section 203(c) provides the application content 
requirements for the Secretary to consider an Indian tribe's 
application to be eligible to participate in the Project.
    Section 203(d) provides that the Project shall be in effect 
for 10 years after the date of enactment of this Act; and may 
be extended at the discretion of the Secretary.

Section 204. Indian trust asset management plan

    Section 204(a) provides the proposed Indian trust asset 
management plan requirements for an Indian tribe to follow once 
they receive a notice from the Secretary under section 
203(b)(2). This subsection also provides the content 
requirements and provisions that must be included in the 
proposed Indian trust asset management plan. On receipt of a 
written request from the Indian tribe, the Secretary shall 
provide to the Indian tribe any technical assistance and 
information, including budgetary information, that the Indian 
tribe determines to be necessary for preparation of a proposed 
plan.
    Section 204(b) sets forth that not later than 120 days 
after the date on which an Indian tribe submits a proposed 
Indian trust asset management plan under subsection (a), the 
Secretary shall approve or disapprove the proposed plan. This 
subsection also describes the requirements for disapproval of a 
proposed plan submitted by an Indian tribe. The Secretary shall 
provide written notice to an Indian tribe if their proposed 
plan is disapproved. The Indian tribe may resubmit an amended 
plan not later than 90 days after the date on which the Indian 
tribe receives the written notice of disapproval. If the 
Secretary fails to approve or disapprove a proposed plan in 
accordance with paragraph (1), the plan shall be considered to 
be approved. An Indian tribe may seek judicial review of a 
determination of the Secretary, in accordance with the 
Administrative Procedure Act, if the Secretary disapproves the 
proposed plan of an Indian tribe; and the Indian tribe has 
exhausted all administrative remedies.
    Section 204(c) states that subject to section 205, an 
Indian trust asset management plan, and any activity carried 
out under the plan, shall not be approved unless the proposed 
plan is consistent with any treaties, statutes, and Executive 
Orders that are applicable to trust assets, or the management 
of the trust assets, identified in the plan.
    Section 204(d) provides an Indian tribe the requirements to 
follow if they want to terminate an approved Indian trust asset 
management plan. This subsection also sets forth the effective 
date for when the terminated plan takes effect.

Section 205. Forest land management and surface leasing activities

    Section 205(a) sets forth definitions--
    ``Forest Land Management Activity'' means any activity 
described in section 304(4) of the National Indian Forest 
Resources Management Act (25 U.S.C. 3103(4)).
    ``Interested Party'' means an Indian or non-Indian 
individual, entity, or government the interests of which could 
be adversely affected by a tribal trust leasing decision made 
by an applicable Indian tribe.
    ``Surface Leasing Transaction'' means a residential, 
business, agricultural, or wind or solar resource lease of land 
the title to which is held--in trust by the United States for 
the benefit of an Indian tribe; or in fee by an Indian tribe, 
subject to restrictions against alienation under Federal law.
    Section 205(b) states that the Secretary may approve an 
Indian trust asset management plan that includes a provision 
authorizing the Indian tribe to enter into, approve, and carry 
out a surface leasing transaction or forest land management 
activity without approval of the Secretary, regardless of 
whether the surface leasing transaction or forest land 
management activity would require such an approval under 
otherwise applicable law (including regulations), if certain 
conditions are met.
    Section 205(c) provides for which types of transactions an 
Indian tribe can authorize to carry out. This subsection also 
allows for an Indian tribe to be able to select which 
transactions and activities are authorized to be carried out by 
the Indian tribe.
    Section 205(d) allows for an Indian tribe to request 
technical assistance from the Secretary for development of a 
regulatory environmental review process required under 
subsection (b)(2)(B)(ii) of this section. This subsection also 
provides technical assistance by the Secretary to an Indian 
tribe through contracts, grants, or agreements entered into in 
accordance with, and made available to entities eligible for, 
contracts, grants, or agreements under the Indian Self-
Determination and Education Assistance Act (25 U.S.C. 450 et 
seq.).
    Section 205(e) states that an Indian tribe shall have the 
authority to rely on the Federal environmental review process, 
rather than any Tribal environmental review process, if an 
Indian tribe carries out a project or activity funded by a 
Federal agency.
    Section 205(f) provides for documentation requirements 
Indian tribes must follow if they execute a surface leasing 
transaction or forest land management activity.
    Section 205(g) states that the United States shall not be 
liable for losses sustained by an Indian tribe as a result of 
the execution of any forest land management activity pursuant 
to tribal regulations under subsection (b) of this section, or 
by any party to a lease executed pursuant to tribal regulations 
under subsection (b) of this section. This subsection allows 
for the Secretary to fulfill the trust obligation of the United 
States to Indian tribes by enforcing the provisions of, or 
canceling, any lease executed by the Indian tribe under this 
section.
    Section 205(h) provides an interested party, after 
exhausting any available tribal remedies, the option to submit 
a petition to the Secretary to determine whether an Indian 
tribe is complying with their tribal regulations. If the 
Secretary determines a violation has occurred, the Secretary 
may take any action determined to be necessary to remedy the 
violation, including rescinding the approval of the tribal 
regulations and reassuming Federal responsibility for the 
approval of leases of tribal trust land. Documentation of the 
violation of tribal regulations will be necessary and the 
Secretary shall issue a written determination of the violation; 
provide written notice to the violating Indian tribe; and prior 
to the exercise of any remedy, the rescission of the approval 
of the regulation involved, or the reassumption of the trust 
asset transaction approval responsibilities, provide the Indian 
tribe a hearing on the record and a reasonable opportunity to 
cure the alleged violation.

Section 206. Effect of title

    Section 206(a) states that subject to section 205 and this 
section, nothing in this title or an approved Indian trust 
asset management plan shall independently diminish, increase, 
create, or otherwise affect the liability of the United States 
or an Indian tribe participating in the Project for any loss 
resulting from the management of an Indian trust asset under an 
Indian trust asset management plan.
    Section 206(b) sets forth the United States shall not be 
liable to any party (including any Indian tribe) for any term 
of, or any loss resulting from the terms of, an Indian trust 
asset management plan that provides for management of a trust 
asset at a less stringent standard than the Secretary would 
otherwise require or adhere to in absence of an Indian trust 
asset management plan.
    Section 206(c) states that subsection (b) applies to losses 
resulting from a transaction or activity described in that 
subsection even if the Indian trust asset management plan is 
terminated under section 204(d) or rescinded under section 
205(h).
    Section 206(d) provides that nothing in this title amends 
or otherwise affects the application of any treaty, statute, 
regulation, or Executive Order that is applicable to Indian 
trust assets or the management or administration of Indian 
trust assets, except as provided in subsection (e) and sections 
204 and 205. This subsection also provides that nothing in this 
title limits or otherwise affects the authority of an Indian 
tribe, including one participating in the Project, to enter 
into and carry out a contract, compact, or other agreement 
under the Indian Self-Determination and Education Assistance 
Act (25 U.S.C. 450 et seq.) (including regulations).
    Section 206(e) provides that if an Indian tribe does not 
submit or intend to submit an Indian trust asset management 
plan, an Indian tribe may submit tribal regulations governing 
forest land management activities to the Secretary for review 
and approval.
    Section 206(f) states that nothing in this title enhances, 
diminishes, or otherwise affects the trust responsibility of 
the United States to Indian tribes or individual Indians.

       TITLE III--IMPROVING EFFICIENCY AND STREAMLINING PROCESSES

Section 301. Purpose

    Section 301 provides the purpose of Title III is to ensure 
a more efficient and streamlined administration of duties of 
the Secretary with respect to providing services and programs 
to Indian tribes and Indians, including the management of 
Indian trust resources.

Section 302. Definitions

    Section 302 sets forth definitions--
    ``BIA'' means the Bureau of Indian Affairs.
    ``Department'' means the Department of the Interior.
    ``Secretary'' means the Secretary of the Interior.
    ``Under Secretary'' means the individual appointed to the 
position of Under Secretary for Indian Affairs established 
under section 303(a).

Section 303. Under Secretary for Indian Affairs

    Section 303(a) provides that the Secretary may establish in 
the Department the position of Under Secretary for Indian 
Affairs, who shall report directly to the Secretary.
    Section 303(b) sets forth that the President shall appoint 
the Under Secretary with the advice and consent of the Senate. 
This subsection also provides when this Act is enacted, the 
Secretary may assume the position of Under Secretary without 
appointment if the Secretary was appointed by the President, 
with the advice and consent of the Senate, and no later than 
180 days after this Act is enacted, the Secretary approves the 
assumption of the position of Under Secretary.
    Section 303(c) provides the duties of the Under Secretary, 
as directed by the Secretary, shall be to coordinate with the 
Special Trustee for American Indians to ensure an orderly 
transition of the functions of the Special Trustee to the 
appropriate agencies, offices, or bureaus within the 
Department. This subsection also allows for the Under Secretary 
to provide regular consultation with Indian tribes and Indians 
that own interests in trust resources and trust fund accounts.
    Section 303(d) provides that the Under Secretary may 
appoint and fix the compensation for their personnel determined 
to be necessary in carrying out the functions transferred 
within this section. This subsection provides other personnel 
requirements of the officers or employees appointed by the 
Under Secretary.

Section 304. Office of Special Trustee for American Indians

    Section 304(a) provides that no later than one year after 
enactment of this Act the Secretary shall prepare and, after 
consultation with Indian tribes and appropriate tribal 
organizations, submit a report to Congress.
    Section 304(b) states the Secretary, at the request of an 
Indian tribe or consortia of Indian tribes, shall include 
fiduciary trust offices in a contract, compact, or other 
agreement under the Indian Self-Determination and Education 
Assistance Act (25 U.S.C. 450 et seq.).
    Section 304(c) states that nothing in this section or the 
report terminates the Office of the Special Trustee; or affects 
the application of sections 302 and 303 of the American Indian 
Trust Fund Management Reform Act of 1994 (25 U.S.C. 4042, 
4043).

Section 305. Appraisals and valuations

    Section 305(a) provides that no later than 18 months after 
the enactment of this Act, the Secretary, in consultation with 
Indian tribes and tribal organizations, shall ensure that 
appraisals and valuations of Indian trust property are 
administered by a single bureau, agency, or other 
administrative entity within the Department.
    Section 305(b) provides that the Secretary shall establish 
and publish in the Federal Register the minimum qualifications 
for individuals to prepare appraisals and valuations of Indian 
trust property, no later than one year after enactment of this 
Act.
    Section 305(c) states that when an Indian tribe or Indian 
beneficiary submits to the Secretary an appraisal or valuation 
that satisfies the minimum qualifications described in 
subsection (b), and the submission acknowledges the intent of 
the Indian tribe or Indian beneficiary to have the appraisal or 
valuation considered under this subsection, the appraisal or 
valuation shall not require any additional review or 
Secretarial approval; and shall be considered final for 
purposes of effectuating the transaction for which the 
appraisal or valuation is required.

Section 306. Cost savings

    Section 306(a) provides that for any program, function, 
service, or activity of the Office of Special Trustee that will 
not be operated or carried out after the date of enactment of 
this Act as a result of a transfer of functions and personnel, 
the Secretary shall identify the amounts the Secretary would 
have expended to carry out the program, function, service, and 
activity; and provide to the Tribal/Interior Budget Council a 
list that describes the programs, functions, services, and 
activities identified in paragraph (1); and the amounts 
associated with each program, function, service, and activity.
    Section 306(b) states that not later than 90 days after the 
date of receipt of a list under subsection (a)(2), the tribal 
representatives of the Tribal/Interior Budget Council and the 
representatives of any other appropriate entities that advise 
the Secretary on Indian budget or funding issues may provide 
recommendations to the Secretary, the Office of Management and 
Budget, and four Committees in the House of Representatives and 
Senate.

                   COST AND BUDGETARY CONSIDERATIONS

    The following cost estimate, as provided by the 
Congressional Budget Office, dated January 29, 2016, was 
prepared for S. 383:

                                                  January 29, 2016.
Hon. John Barrasso,
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. 383, the Indian 
Trust Asset Reform Act.
    If you wish further details on this estimate, we will be 
pleased to provide them. The CBO staff contact is Megan 
Carroll.
            Sincerely,
                                                        Keith Hall.
    Enclosure.

    Under current law, the Department of the Interior (DOI) is 
responsible for managing financial assets held in trust by the 
federal government for the benefit of Indian tribes. S. 383 
would amend current law to give tribes more authority to manage 
their own assets. The bill also would expand tribes' authority 
to enter into leases for certain services and activities on 
tribal land--particularly related to management of tribally 
owned natural resources--without DOI's approval.
    CBO does not expect that implementing S. 383 would affect 
the federal government's overall costs to provide services and 
other assistance to tribes. Under current law, some of those 
costs are incurred directly by DOI; in other cases, the 
department provides financial support for tribes to perform 
such work. In the latter case, DOI typically retains a role in 
approving and overseeing contracts and other agreements entered 
into by the tribe for such activities.
    Under the bill, to the extent that tribes shift toward 
hiring nonfederal contractors to manage financial assets, DOI 
might face increased costs to review and approve such 
contracts. At the same time, CBO expects that expanding tribes' 
authority to use certain leases to procure services related to 
natural resources owned by the tribe would reduce the 
department's administrative workload. Taken as a whole, CBO 
estimates that any net change in federal costs--which would be 
subject to appropriation--would be insignificant in any given 
year.
    Because enacting S. 383 would not affect direct spending or 
revenues, pay-as-you-go procedures do not apply. CBO estimates 
that enacting S. 383 would not increase net direct spending or 
on-budget deficits in any of the four consecutive 10-year 
periods beginning in 2026.
    S. 383 contains no intergovernmental or private-sector 
mandates as defined in the Unfunded Mandates Reform Act. Any 
costs incurred by tribes as a result of using additional 
authority granted by the bill would be incurred voluntarily.
    The CBO staff contact for this estimate is Megan Carroll. 
The estimate was approved by H. Samuel Papenfuss, Deputy 
Assistant Director for Budget Analysis.

                        EXECUTIVE COMMUNICATIONS

    The Committee has received no communications from the 
Executive Branch regarding S. 383, as amended.

               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. 383, as 
amended, will have a minimal impact on regulatory or paperwork 
requirements.

                        CHANGES IN EXISTING LAW

    In compliance with subsection 12 of rule XXVI of the 
Standing Rules of the Senate, the Committee finds that the 
enactment of S. 383, as amended, will not make any changes in 
existing law.

                                  [all]
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