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[Senate Report 108-251]
[From the U.S. Government Publishing Office]

                                                       Calendar No. 468
108th Congress                                                   Report
                                 SENATE
 2d Session                                                     108-251
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                ALASKA NATIVE ALLOTMENT SUBDIVISION ACT

                                _______
                                

                 March 29, 2004.--Ordered to be printed

                                _______
                                

   Mr. Domenici, from the Committee on Energy and Natural Resources, 
                        submitted the following

                              R E P O R T

                         [To accompany S. 1421]

    The Committee on Energy and Natural Resources, to which was 
referred the bill (S. 1421), to authorize the subdivision and 
dedication of restricted land owned by Alaska natives, having 
considered the same, reports favorably thereon with an 
amendment and recommends that the bill, as amended, do pass.
    The amendment is as follows:
    Strike out all after the enacting clause and insert in lieu 
thereof the following:

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Alaska Native Allotment Subdivision 
Act''.

SEC. 2. DEFINITIONS.

    In this Act:
          (1) Restricted land.--The term ``restricted land'' means land 
        in the State that is subject to Federal restrictions against 
        alienation and taxation.
          (2) Secretary.--The term ``Secretary'' means the Secretary of 
        the Interior.
          (3) State.--The term ``State'' means the State of Alaska.

SEC. 3. SUBDIVISION AND DEDICATION OF ALASKA NATIVE RESTRICTED LAND.

    (a) In General.--An Alaska Native owner of restricted land may, 
subject to the approval of the Secretary--
          (1) subdivide the restricted land in accordance with the laws 
        of the--
                  (A) State; or
                  (B) applicable local platting authority; and
          (2) execute a certificate of ownership and dedication with 
        respect to the restricted land subdivided under paragraph (1) 
        with the same effect under State law as if the restricted land 
        subdivided and dedicated were held by unrestricted fee simple 
        title.
    (b) Ratification of Prior Subdivisions and Dedications.--Any 
subdivision or dedication of restricted land executed before the date 
of enactment of this Act that has been approved by the Secretary and by 
the relevant State or local platting authority, as appropriate, shall 
be considered to be ratified and confirmed by Congress as of the date 
on which the Secretary approved the subdivision or dedication.

SEC. 4. EFFECT ON STATUS OF LAND NOT DEDICATED.

    Except in a case in which a specific interest in restricted land is 
dedicated under section 3(a)(2), nothing in this Act terminates, 
diminishes, or otherwise affects the continued existence and 
applicability of Federal restrictions against alienation and taxation 
on restricted land or interests in restricted land (including 
restricted land subdivided under section 3(a)(1)).

                         PURPOSE OF THE MEASURE

    The purpose of S. 1421 is to authorize the subdivision and 
dedication of restricted land owned by Alaska Natives, subject 
to the approval of the Secretary of the Interior.

                          BACKGROUND AND NEED

    S. 1421 will provide Native landowners the authority to 
subdivide property they have received under the Native 
Allotment Act of 1906. Individual Alaska Native landowners 
cannot subdivide their native allotments to transfer it either 
by gift or by sale. Native landowners also lack authority to 
dedicate rights-of-way across their land for public access or 
for utility purposes. The lack of explicit statutory 
authorization calls into question the legal validity of lands 
that have been subdivided in the past and lands that likely 
could be subdivided in the future. S. 1421 will provide the 
necessary authorization to Alaska Native landowners to dedicate 
their land for public purposes, subject to the approval of the 
Secretary of the Interior. S. 1421 allows Alaska Natives to own 
lands with the same obligations and privileges of other private 
landowners in Alaska, but creates no obligation of Alaska 
Natives to do anything with their allotments unless they elect 
to sell or dispose of their lands.

                          LEGISLATIVE HISTORY

    S. 1421 was introduced by Senator Murkowski on July 16, 
2003. The Subcommittee on Public Lands and Forests held a field 
hearing in Anchorage, Alaska, on August 6, 2003. S. Hrg. 108-
163. The Subcommittee held a second hearing in Washington, D.C. 
on February 12, 2004. At the business meeting on March 10, 
2004, the Committee on Energy and Natural Resources ordered S. 
1421 favorably reported, with an amendment in the nature of a 
substitute.

                        COMMITTEE RECOMMENDATION

    The Senate Committee on Energy and Natural Resources, in 
open business session on March 10, 2004, by a unanimous voice 
vote of a quorum present, recommends that the Senate pass S. 
1421, if amended as described herein.

                          COMMITTEE AMENDMENT

    During the consideration of S. 1421, the Committee adopted 
an amendment in the nature of a substitute. The amendment 
deleted the congressional findings section and simplified the 
savings clause language in the bill. The amendment is described 
in the section-by-section analysis below.

                      SECTION-BY-SECTION ANALYSIS

    Section 1 entitles the bill the ``Alaska Native Allotment 
Subdivision Act''.
    Section 2 provides definitions used in the bill.
    Section 3 grants to Alaska Native landowners the ability to 
subdivide and dedicate restricted land in accordance with State 
and local law, subject to the approval of the Secretary of the 
Interior. The section also ratifies subdivisions and 
dedications executed prior to the date of enactment.
    Section 4 clarifies that nothing in this Act terminates, 
diminishes or otherwise affects Federal restrictions or 
alienation and taxation on restricted lands not dedicated by 
this Act.

                   COST AND BUDGETARY CONSIDERATIONS

    The following estimate of costs of this measure has been 
provided by the Congressional Budget Office:

S. 1421--Alaska Native Allotment Subdivision Act

    S. 1421 would allow Alaska Natives, subject to approval by 
the Secretary of the Interior, to legally subdivide certain 
parcels of land that have been allotted to them by the federal 
government. Under current law, federal restrictions against 
alienation and taxation prohibit individuals from subdividing 
those lands in accordance with state and local law.
    Based on information from the Department of the Interior, 
CBO estimates that S. 1421 would have no significant impact on 
the federal budget. The bill would not affect revenues. S. 1421 
contains no intergovernmental or private-sector mandates as 
defined in the Unfunded Mandates Reform Act and would impose no 
costs on state, local, or tribal governments.
    The CBO staff contact for this estimate is Megan Carroll. 
This estimate was approved by Peter H. Fontaine, Deputy 
Assistant Director for Budget Analysis.

                      REGULATORY IMPACT EVALUATION

    In compliance with paragraph 11(b) of rule XXVI of the 
Standing Rules of the Senate, the Committee makes the following 
evaluation of the regulatory impact which would be incurred in 
carrying out S. 1421. The bill is not a regulatory measure in 
the sense of imposing Government-established standards or 
significant economic responsibilities on private individuals 
and businesses.
    No personal information would be collected in administering 
the program. Therefore, there would be no impact on personal 
privacy.
    Little, if any, additional paperwork would result from the 
enactment of S. 1421.

                        EXECUTIVE COMMUNICATIONS

    On February 12, 2004, the Committee on Energy and Natural 
Resources requested legislative reports from the Department of 
the Interior and the Office of Management and Budget. These 
reports had not been received at the time this report was 
filed. The testimony provided by the Bureau of Land Management 
at the Subcommittee hearing follows:

  Statement of Kathleen Clarke, Director, Bureau of Land Management, 
                       Department of the Interior

    Mr. Chairman and Members of the Committee, I am Kathleen 
Clarke, Director of the Bureau of Land Management, Department 
of the Interior. I appreciate the opportunity to appear before 
you today to present the Department's views on S. 1421, the 
Alaska Native Allotment subdivision Act. The Department 
supports the intent of this bill. We would like to work with 
Committee to make certain technical amendments designed to 
clarify and strengthen the bill.

                               background

    The purpose of the Federal statutory restrictions placed on 
Alaska Native allotments and restricted Native townsite lots is 
to protect Alaska Native owners against loss of their State and 
local governments, the Bureau of Indian Affairs, realty service 
providers under the Indian Self-Determination Act, and the 
general public. All of these entities have in the past relied 
upon the legal validity of dedications to the public which 
appeared on the face of existing plats.
    Enactment of S. 1421 would remove an obstacle to pending 
lot sales and re-sales in existing subdivisions. It would pave 
the way for other Native owners of restricted lands to create 
new subdivisions in compliance with State or local platting 
requirements without forcing them to choose between the 
financial benefits of compliance with State law and the 
retention of protections against taxation and creditor's claims 
inherent in the restricted status of their lands. This feature 
is clarified by Section 5(b) of S. 1421, which provides that 
Federal restrictions against taxation and alienation are only 
lost by compliance with State or local platting requirements as 
to those specific interests expressly dedicated in the 
Certificate of Ownership and Dedication.
    The Department recommends amending Section 4(a)(1) of the 
bill to read, ``subdivide the restricted land for rights-of-way 
for public access, easements for utility installation, use and 
maintenance and for other public purposes, in accordance with 
the laws of the--'' to make this section consistent with the 
findings in Section 2(a)(b)(c) of the bill. Additionally, the 
Department recommends adding a new section to the bill 
authorizing the promulgation of regulations to clarify how S. 
1421 would be implemented.

                               conclusion

    In closing, I would like to thank the Committee for its 
continuing commitment to address these complex issues, and 
reiterate the Department's support for the intent of this bill. 
If enacted with certain technical changes, S. 1421 will allow 
Native Alaskans to subdivide their restricted allotment lands 
with the approval of the Secretary. We look forward to working 
with the Committee on technical amendments to this bill. I will 
be happy to answer any questions you may have.

                        CHANGES IN EXISTING LAW

    In compliance with paragraph 12 of rule XXVI of the 
Standing Rules of the Senate, the Committee notes that no 
changes in existing law are made by the bill S. 1421 as ordered 
reported.

                                
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