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[Congressional Bills 109th Congress]
[From the U.S. Government Publishing Office]
[S. 1439 Introduced in Senate (IS)]

109th CONGRESS
  1st Session
                                S. 1439

 To provide for Indian trust asset management reform and resolution of 
         historical accounting claims, and for other purposes.

_______________________________________________________________________

                   IN THE SENATE OF THE UNITED STATES

                             July 20, 2005

Mr. McCain (for himself and Mr. Dorgan) introduced the following bill; 
  which was read twice and referred to the Committee on Indian Affairs

_______________________________________________________________________

                                 A BILL

 
 To provide for Indian trust asset management reform and resolution of 
         historical accounting claims, and for other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``Indian Trust 
Reform Act of 2005''.
    (b) Table of Contents.--The table of contents for this Act is as 
follows:

Sec. 1. Short title; table of contents.
                TITLE I--SETTLEMENT OF LITIGATION CLAIMS

Sec. 101. Findings.
Sec. 102. Definitions.
Sec. 103. Individual Indian Accounting Claim Settlement Fund.
Sec. 104. General distribution.
Sec. 105. Claims relating to share determination.
Sec. 106. Claims relating to method of valuation.
Sec. 107. Claims relating to constitutionality.
Sec. 108. Attorneys' fees.
Sec. 109. Waiver and release of claims.
Sec. 110. Effect of title.
    TITLE II--INDIAN TRUST ASSET MANAGEMENT POLICY REVIEW COMMISSION

Sec. 201. Establishment.
Sec. 202. Membership.
Sec. 203. Meetings and procedures.
Sec. 204. Duties.
Sec. 205. Powers.
Sec. 206. Commission personnel matters.
Sec. 207. Exemption from FACA.
Sec. 208. Authorization of appropriations.
Sec. 209. Termination of Commission.
   TITLE III--INDIAN TRUST ASSET MANAGEMENT DEMONSTRATION PROJECT ACT

Sec. 301. Short title.
Sec. 302. Definitions.
Sec. 303. Establishment of demonstration project; selection of 
                            participating Indian tribes.
Sec. 304. Indian trust asset management plan.
Sec. 305. Effect of title.
    TITLE IV--FRACTIONAL INTEREST PURCHASE AND CONSOLIDATION PROGRAM

Sec. 401. Fractional interest program.
 TITLE V--RESTRUCTURING BUREAU OF INDIAN AFFAIRS AND OFFICE OF SPECIAL 
                                TRUSTEE

Sec. 501. Purpose.
Sec. 502. Definitions.
Sec. 503. Under Secretary for Indian Affairs.
Sec. 504. Transfer of functions of Assistant Secretary for Indian 
                            Affairs.
Sec. 505. Office of Special Trustee for American Indians.
Sec. 506. Hiring preference.
Sec. 507. Authorization of appropriations.
                 TITLE VI--AUDIT OF INDIAN TRUST FUNDS

Sec. 601. Audits and reports.
Sec. 602. Authorization of appropriations.

                TITLE I--SETTLEMENT OF LITIGATION CLAIMS

SEC. 101. FINDINGS.

    Congress finds that--
            (1) Congress has appropriated tens of millions of dollars 
        for purposes of providing an historical accounting of funds 
        held in Individual Indian Money accounts;
            (2) as of the date of enactment of this Act, the efforts of 
        the Federal Government in conducting historical accounting 
        activities have provided information regarding the feasibility 
        and cost of providing a complete historical accounting of IIM 
        account funds;
            (3) in the case of many IIM accounts, a complete historical 
        accounting--
                    (A) may be impossible because necessary records and 
                accounting data are missing or destroyed;
                    (B) may take several years to perform even if 
                necessary records are available;
                    (C) may cost the United States hundreds of millions 
                and possibly several billion dollars; and
                    (D) may be impossible to complete before the deaths 
                of many elderly IIM account beneficiaries;
            (4) without a complete historical accounting, it may be 
        difficult or impossible to ascertain the extent of losses in an 
        IIM account as a result of accounting errors or mismanagement 
        of funds, or the correct amount of interest accrued or owned on 
        the IIM account;
            (5) the total cost to the United States of providing a 
        complete historical accounting of an IIM account may exceed--
                    (A) the current balance of the IIM account;
                    (B) the total sums of money that have passed 
                through the IIM account; and
                    (C) the enforceable liability of the United States 
                for losses from, and interest in, the IIM account;
            (6)(A) the delays in obtaining an accounting and in 
        pursuing accounting claims in the case styled Cobell v. Norton, 
        Civil Action No. 96-1285 (RCL) in the United States District 
        Court for the District of Columbia, have created a great 
        hardship on IIM account beneficiaries; and
            (B) many beneficiaries and their representatives have 
        indicated that they would rather receive monetary compensation 
        than experience the continued frustration and delay associated 
        with an accounting of transactions and funds in their IIM 
        accounts;
            (7) it is appropriate for Congress, taking into 
        consideration the findings under paragraphs (1) through (6), to 
        provide benefits that are reasonably calculated to be fair and 
        appropriate in lieu of performing an accounting of an IIM 
        account, or assuming liability for errors in such an 
        accounting, mismanagement of IIM account funds (including 
        undetermined amounts of interest in IIM accounts, losses in 
        which may never be discovered or quantified if a complete 
        historical accounting cannot be performed), or breach of 
        fiduciary duties with respect to the administration of IIM 
        accounts, in order to transmute claims by the beneficiaries of 
        IIM accounts for undetermined or unquantified accounting losses 
        and interest to a fixed amount to be distributed to the 
        beneficiaries of IIM accounts;
            (8) in determining the amount of the payments to be 
        distributed as described in paragraph (7), Congress should take 
        into consideration, in addition to the factors described in 
        paragraphs (1) through (6)--
                    (A) the risks and costs to IIM account 
                beneficiaries, as well as any delay, associated with 
                the litigation of claims that will be resolved by this 
                title; and
                    (B) the benefits to IIM account beneficiaries 
                available under this title;
            (9) the situation of the Osage Nation is unique because, 
        among other things, income from the mineral estate of the Osage 
        Nation is distributed to individuals through headright 
        interests that belong not only to members of the Osage Nation, 
        but also to members of other Indian tribes, and to non-Indians; 
        and
            (10) due to the unique situation of the Osage Nation, the 
        Osage Nation, on its own behalf, has filed various actions in 
        Federal district court and the United States Court of Federal 
        Claims seeking accountings, money damages, and other legal and 
        equitable relief

SEC. 102. DEFINITIONS.

    In this title:
            (1) Accounting claim.--The term ``accounting claim'' means 
        any claim for an historical accounting of a claimant against 
        the United States under the Litigation.
            (2) Claimant.--The term ``claimant'' means any beneficiary 
        of an IIM account (including an heir of such a beneficiary) 
        that was living on the date of enactment of the American Indian 
        Trust Fund Management Reform Act of 1994 (25 U.S.C. 4001 et 
        seq.).
            (3) IIM account.--The term ``IIM account'' means an 
        Individual Indian Money account administered by the Bureau of 
        Indian Affairs.
            (4) Litigation.--The term ``Litigation'' means the case 
        styled Cobell v. Norton, Civil Action No. 96-1285 (RCL) in the 
        United States District Court for the District of Columbia.
            (5) Secretary.--The term ``Secretary'' means the Secretary 
        of the Treasury.
            (6) Settlement fund.--The term ``Settlement Fund'' means 
        the fund established by section 103(a).
            (7) Special master.--The term ``Special Master'' means the 
        special master appointed by the Secretary under section 103(b) 
        to administer the Settlement Fund.

SEC. 103. INDIVIDUAL INDIAN ACCOUNTING CLAIM SETTLEMENT FUND.

    (a) Establishment.--
            (1) In general.--There is established in the general fund 
        of the Treasury a fund, to be known as the ``Individual Indian 
        Accounting Claim Settlement Fund''.
            (2) Initial deposit.--The Secretary shall deposit into the 
        Settlement Fund to carry out this title not less than 
        $[__],000,000,000 from funds appropriated under section 1304 of 
        title 31, United States Code.
    (b) Special Master.--As soon as practicable after the date of 
enactment of this Act, the Secretary shall appoint a Special Master to 
administer the Settlement Fund in accordance with this title.
    (c) Distribution.--
            (1) In general.--The Special Master shall use not less than 
        80 percent of amounts in the Settlement Fund to make payments 
        to claimants in accordance with section 104.
            (2) Method of valuation and constitutional claims.--The 
        Special Master may use not to exceed 12 percent of amounts in 
        the Settlement Fund to make payments to claimants described 
        in--
                    (A) section 106; or
                    (B) section 107.
            (3) Attorneys' fees.--The Special Master may use not to 
        exceed [__] percent of amounts in the Settlement Fund to make 
        payments to claimants for attorneys' fees in accordance with 
        section 108.
    (d) Costs of Administration.--The Secretary may use not more than 
[__] percent of amounts in the Settlement Fund to pay the costs of--
            (1) administering the Settlement Fund; and
            (2) otherwise carrying out this title.

SEC. 104. GENERAL DISTRIBUTION.

    (a) Payments to Claimants.--
            (1) In general.--Not later than 1 year after the date on 
        which the Secretary publishes in the Federal Register the 
        regulations described in subsection (d), the Special Master 
        shall distribute to each claimant from the Settlement Fund an 
        amount equal to the sum of--
                    (A) the per capita share of the claimant of 
                $[__],000,000,000 of the amounts described in section 
                103(c)(1); and
                    (B) of $[__],000,000,000 of the amounts described 
                in section 103(c)(1), the additional share of the 
                claimant, to be determined in accordance with a formula 
                established by the Secretary under subsection (d)(1).
            (2) Heirs of claimants.--
                    (A) In general.--An heir of a claimant shall 
                receive the entire amount distributed to the claimant 
                under paragraphs (1) and (3).
                    (B) Multiple heirs.--If a claimant has more than 1 
                heir, the amount distributed to the claimant under 
                paragraphs (1) and (3) shall be divided equally among 
                the heirs of the claimant.
            (3) Residual amounts.--After making each distribution 
        required under sections 106, 107, and 108, the Special Master 
        shall distribute to claimants the remainder of the amounts 
        described in paragraphs (2) and (3) of section 103(c), in 
        accordance with paragraph (1)(B).
    (b) Requirement for Distribution.--The Special Master shall not 
make a distribution to a claimant under subsection (a) until the 
claimant executes a waiver and release of accounting claims against the 
United States in accordance with section 109.
    (c) Location of Claimants.--
            (1) Responsibility of secretary of the interior.--The 
        Secretary of the Interior shall provide to the Special Master 
        any information, including IIM account information, that the 
        Special Master determines to be necessary to--
                    (A) identify any claimant under this title; or
                    (B) apply a formula established by the Secretary 
                under subsection (d).
            (2) Claimants of unknown location.--
                    (A) In general.--The Special Master shall deposit 
                in an account, for future distribution, amounts under 
                this title for each claimant who--
                            (i) is entitled to receive a distribution 
                        under this title, as determined by the Special 
                        Master; and
                            (ii) has not been located by the Special 
                        Master as of the date on which a distribution 
                        is required under subsection (a)(1).
                    (B) Location of claimants.--
                            (i) Responsibility of secretary of the 
                        interior.--The Secretary of the Interior shall 
                        provide to the Special Master any information 
                        and assistance necessary to locate a claimant 
                        described in subparagraph (A)(ii).
                            (ii) Contracts.--The Special Master may 
                        enter into contracts with an Indian tribe or an 
                        organization representing individual Indians in 
                        order to locate a claimant described in 
                        subparagraph (A)(ii).
    (d) Regulations.--
            (1) In general.--The Secretary shall promulgate any 
        regulations that the Secretary determines to be necessary to 
        carry out this title, including regulations establishing a 
        formula to determine the share of each claimant of payments 
        under subsection (a)(1).
            (2) Factors for consideration.--In developing the formula 
        described in paragraph (1), the Secretary shall take into 
        consideration the amount of funds that have passed through the 
        IIM account of each claimant during the period beginning on 
        January 1, 1980, and ending on December 31, 2005, or another 
        period, as the Secretary determines to be appropriate.

SEC. 105. CLAIMS RELATING TO SHARE DETERMINATION.

    (a) In General.--Subject to subsection (b), any claimant may seek 
judicial review of the determination of the Special Master with respect 
to the amount of a share payment of a claimant under section 104(a)(1).
    (b) Requirements.--A claimant shall file a claim under subsection 
(a)--
            (1) not later than 180 days after the date of receipt of a 
        notice by the claimant under subsection (c); and
            (2) in the United States district court for the district in 
        which the claimant resides.
    (c) Notice.--The Secretary shall provide to each claimant a notice 
of the right of any claimant to seek judicial review of a determination 
of the Special Master with respect to the amount of the share payment 
of the claimant under section 105.
    (d) Subsequent Appeals.--A claim relating to a determination of a 
United States district court relating to an appeal under subsection (a) 
shall be filed only in the United States Court of Appeals for the 
District of Columbia.

SEC. 106. CLAIMS RELATING TO METHOD OF VALUATION.

    (a) In General.--Not later than 1 year after the date of enactment 
of this Act, a claimant may seek judicial review of the method of 
distribution of a payment to the claimant under section 104(a).
    (b) Requirements.--A claim under subsection (a)--
            (1) shall not be filed as part of a class action claim 
        against any party; and
            (2) shall be filed only in the United States Court of 
        Federal Claims.
    (c) Available Amounts.--
            (1) In general.--The Special Master shall use only amounts 
        described in section 103(c)(2)(A) to satisfy an award under a 
        claim under this section.
            (2) Payments to claimants.--A claimant that files a claim 
        under this subsection shall not be eligible to receive a 
        distribution under section 104(a).
    (d) Effect of Claim.--The filing of a claim under this section 
shall be considered to be a waiver by the claimant of any right to an 
award under section 104.

SEC. 107. CLAIMS RELATING TO CONSTITUTIONALITY.

    (a) In General.--Any claimant may seek judicial review in the 
United States District Court for the District of Columbia of the 
constitutionality of the application of this title to an individual 
claimant.
    (b) Procedure.--
            (1) Judicial panel.--A claim under this section shall be 
        determined by a panel of 3 judges, to be appointed by the chief 
        judge of the United States District Court for the District of 
        Columbia.
            (2) Consolidation of claims.--
                    (A) In general.--The judicial panel may consolidate 
                claims under this section, as the judicial panel 
                determines to be appropriate.
                    (B) Prohibition of class action cases.--A claim 
                under this section shall not be filed as part of a 
                class action claim against any party.
            (3) Determination.--The judicial panel may award a claimant 
        such relief as the judicial panel determines to be appropriate, 
        including monetary compensation.
    (c) Available Amounts.--
            (1) In general.--The Special Master shall use only amounts 
        described in section 103(c)(2)(B) to satisfy an award under a 
        claim under this section.
            (2) Payments to claimants.--A claimant that files a claim 
        under this subsection shall not be eligible to receive a 
        distribution under section 104(a).
    (d) Effect of Claim.--The filing of a claim under this section 
shall be considered to be a waiver by the claimant of any right to an 
award under section 104.

SEC. 108. ATTORNEYS' FEES.

    (a) In General.--The Special Master may use amounts described in 
section 103(c)(3) to make payments to claimants for costs and 
attorneys' fees incurred under the Litigation before the date of 
enactment of this Act, or in connection with a claim under section 104, 
at a rate not to exceed $[__] per hour.
    (b) Requirements.--
            (1) In general.--The Special Master may make a payment 
        under subsection (a) only if, as of the date on which the 
        Special Master makes the payment, the applicable costs and 
        attorneys' fees have not been paid by the United States 
        pursuant to a court order.
            (2) Action by attorneys.--To receive a payment under 
        subsection (a), an attorney of the claimant shall submit to the 
        Special Master a written claim for costs or fees under the 
        Litigation.

SEC. 109. WAIVER AND RELEASE OF CLAIMS.

    (a) In General.--In order to receive an award under this title, a 
claimant shall execute and submit to the Special Master a waiver and 
release of claims under this section.
    (b) Contents.--A waiver and release under subsection (a) shall 
contain a statement that the claimant waives and releases the United 
States (including any officer, official, employee, or contractor of the 
United States) from any legal or equitable claim under Federal, State, 
or other law (including common law) relating to any accounting of funds 
in the IIM account of the claimant on or before the date of enactment 
of this Act.

SEC. 110. EFFECT OF TITLE.

    (a) Substitution of Benefits.--
            (1) In general.--The benefits provided under this title 
        shall be considered to be provided in lieu of any claims under 
        Federal, State, or other law originating before the date of 
        enactment of this Act for--
                    (A) losses as a result of accounting errors 
                relating to funds in an IIM account;
                    (B) mismanagement of funds in an IIM account; or
                    (C) interest accrued or owed in connection with 
                funds in an IIM account.
            (2) Limitation of claims.--Except as provided in this 
        title, and notwithstanding any other provision of law, a 
        claimant shall not maintain an action in any Federal, State, or 
        other court for an accounting claim originating before the date 
        of enactment of this Act.
            (3) Jurisdiction of courts.--
                    (A) In general.--Except as otherwise provided in 
                this title, no court shall have jurisdiction over a 
                claim filed by an individual or group for the 
                historical accounting of funds in an IIM account on or 
                before the date of enactment of this Act, including any 
                such claim that is pending on the date of enactment of 
                this Act.
                    (B) Limitation.--This paragraph does not prevent a 
                court from ordering an accounting in connection with an 
                action relating to the mismanagement of trust resources 
                that are not funds in an IIM account on or before the 
                date of enactment of this Act.
    (b) Acceptance as Waiver.--The acceptance by a claimant of a 
benefit under this title shall be considered to be a waiver by the 
claimant of any accounting claim that the claimant has or may have 
relating to the IIM account of the claimant.
    (c) Receipt of Payments Have No Impact on Benefits Under Other 
Federal Programs.--The receipt of a payment by a claimant under this 
title shall not be--
            (1) subject to Federal or State income tax; or
            (2) treated as benefits or otherwise taken into account in 
        determining the eligibility of the claimant for, or the amount 
        of benefits under, any other Federal program, including the 
        social security program, the medicare program, the medicaid 
        program, the State children's health insurance program, the 
        food stamp program, or the Temporary Assistance for Needy 
        Families program.
    (d) Certain Claims.--Nothing in this title precludes any court from 
granting any legal or equitable relief in an action by an Indian tribe 
or Indian nation against the United States, or an officer of the United 
States, filed or pending on or before the date of enactment of this 
Act, seeking an accounting, money damages, or any other relief relating 
to a tribal trust account or trust asset or resource.

    TITLE II--INDIAN TRUST ASSET MANAGEMENT POLICY REVIEW COMMISSION

SEC. 201. ESTABLISHMENT.

    There is established a commission, to be known as the ``Indian 
Trust Asset Management Policy Review Commission,'' (referred to in this 
title as the ``Commission''), for the purposes of--
            (1) reviewing trust asset management laws (including 
        regulations) in existence on the date of enactment of this Act 
        governing the management and administration of individual 
        Indian and Indian tribal trust assets;
            (2) reviewing the management and administration practices 
        of the Department of the Interior with respect to individual 
        Indian and Indian tribal trust assets; and
            (3) making recommendations to the Secretary of the Interior 
        and Congress for improving those laws and practices.

SEC. 202. MEMBERSHIP.

    (a) In General.--The Commission shall be composed of 12 members, of 
whom--
            (1) 4 shall be appointed by the President;
            (2) 2 shall be appointed by the Majority Leader of the 
        Senate;
            (3) 2 shall be appointed by the Minority Leader of the 
        Senate;
            (4) 2 shall be appointed by the Speaker of the House of 
        Representatives; and
            (5) 2 shall be appointed by the Minority Leader of the 
        House of Representatives.
    (b) Qualifications.--The membership of the Commission shall 
include--
            (1) at least 6 members who are representatives of federally 
        recognized Indian tribes with reservation land or other trust 
        land that is managed for--
                    (A) grazing;
                    (B) fishing; or
                    (C) crop, timber, mineral, or other resource 
                production purposes;
            (2) at least 1 member (including any member described in 
        paragraph (1)) who is or has been the beneficial owner of an 
        individual Indian monies account; and
            (3) at least 4 members who have experience in--
                    (A) Indian trust resource (excluding a financial 
                resource) management;
                    (B) fiduciary investment management;
                    (C) financial asset management; and
                    (D) Federal law and policy relating to Indians.
    (c) Date of Appointments.--
            (1) In general.--The appointment of a member of the 
        Commission shall be made not later than 90 days after the date 
        of enactment of this Act.
            (2) Failures to appoint.--A failure to make an appointment 
        in accordance with paragraph (1) shall not affect the powers or 
        duties of the Commission if sufficient members are appointed to 
        establish a quorum.
    (d) Term; Vacancies.--
            (1) Term.--A member shall be appointed for the life of the 
        Commission.
            (2) Vacancies.--A vacancy on the Commission--
                    (A) shall not affect the powers or duties of the 
                Commission; and
                    (B) shall be filled in the same manner as the 
                original appointment was made.

SEC. 203. MEETINGS AND PROCEDURES.

    (a) Initial Meeting.--Not later than 150 days after the date of 
enactment of this Act, the Commission shall hold the initial meeting of 
the Commission to--
            (1) elect a Chairperson; and
            (2) establish procedures for the conduct of business of the 
        Commission, including public hearings.
    (b) Subsequent Meetings.--The Commission shall meet at the call of 
the Chairperson.
    (c) Quorum.--7 members of the Commission shall constitute a quorum, 
but a lesser number of members may hold hearings.
    (d) Chairperson.--The Commission shall elect a Chairperson from 
among the members of the Commission.

SEC. 204. DUTIES.

    (a) Reviews and Assessments.--The Commission shall review and 
assess--
            (1) Federal laws (including regulations) applicable or 
        relating to the management and administration of Indian trust 
        assets; and
            (2) the practices of the Department of the Interior 
        relating to the management and administration of Indian trust 
        assets.
    (b) Consultation.--In conducting the reviews and assessments under 
subsection (a), the Commission shall consult with--
            (1) the Secretary of the Interior;
            (2) federally recognized Indian tribes; and
            (3) organizations that represent the interests of 
        individual owners of Indian trust assets.
    (c) Recommendations.--After conducting the reviews and assessments 
under subsection (a), the Commission shall develop recommendations with 
respect to--
            (1) changes to Federal law that would improve the 
        management and administration of Indian trust assets by the 
        Secretary of the Interior;
            (2) changes to Indian trust asset management and 
        administration practices that would--
                    (A) better protect and conserve Indian trust 
                assets;
                    (B) improve the return on those assets to 
                individual Indian and Indian tribal beneficiaries; or
                    (C) improve the level of security of individual 
                Indian and Indian tribal money account data and assets; 
                and
            (3) proposed Indian trust asset management standards that 
        are consistent with any Federal law that is otherwise 
        applicable to the management and administration of the assets.
    (d) Report.--Not later than 2 years after the date on which the 
Commission holds the initial meeting, the Commission shall submit to 
the Committee on Indian Affairs of the Senate, the Committee on 
Resources of the House of Representatives, and the Secretary of the 
Interior a report that includes--
            (1) an overview and the results of the reviews and 
        assessments under subsection (a); and
            (2) any recommendations of the Commission under subsection 
        (c).

SEC. 205. POWERS.

    (a) Hearings.--The Commission may hold such hearings, meet and act 
at such times and places, take such testimony, and receive such 
evidence as the Chairperson determines to be appropriate to carry out 
this title.
    (b) Information From Federal Agencies.--
            (1) In general.--The Commission may secure directly from a 
        Federal agency such information as the Chairperson determines 
        to be necessary to carry out this title.
            (2) Provision of information.--On request of the 
        Chairperson, the head of a Federal agency shall provide 
        information to the Commission.
    (c) Access to Personnel.--For purposes of carrying out this title, 
the Commission shall have reasonable access to staff responsible for 
Indian trust asset management and administration of--
            (1) the Department of the Interior;
            (2) the Department of the Treasury; and
            (3) the Department of Justice.
    (d) Postal Services.--The Commission may use the United States mail 
in the same manner and under the same conditions as other Federal 
agencies.
    (e) Gifts.--The Commission may accept, use, and dispose of gifts or 
donations of services or property to the same extent and under the same 
conditions as other Federal agencies.

SEC. 206. COMMISSION PERSONNEL MATTERS.

    (a) Compensation of Members.--
            (1) Non-federal employees.--A member of the Commission who 
        is not an officer or employee of the Federal Government shall 
        be compensated at a rate equal to the daily equivalent of the 
        annual rate of basic pay prescribed for level IV of the 
        Executive Schedule under section 5315 of title 5, United States 
        Code, for each day (including travel time) during which the 
        member is engaged in the performance of the duties of the 
        Commission.
            (2) Federal employees.--A member of the Commission who is 
        an officer or employee of the Federal Government shall serve 
        without compensation in addition to the compensation received 
        for the services of the member as an officer or employee of the 
        Federal Government.
    (b) Travel Expenses.--A member of the Commission shall be allowed 
travel expenses, including per diem in lieu of subsistence, at rates 
authorized for an employee of an agency under subchapter I of chapter 
57 of title 5, United States Code, while away from home or regular 
place of business of the member in the performance of the duties of the 
Commission.
    (c) Staff.--
            (1) In general.--The Chairperson may, without regard to the 
        civil services laws (including regulations), appoint and 
        terminate an executive director and such other additional 
        personnel as are necessary to enable the Commission to perform 
        the duties of the Commission.
            (2) Confirmation of executive director.--The employment of 
        an executive director shall be subject to confirmation by the 
        Commission.
            (3) Compensation.--
                    (A) In general.--Except as provided in subparagraph 
                (B), the Chairperson may fix the compensation of the 
                executive director and other personnel without regard 
                to the provisions of chapter 51 and subchapter III of 
                title 5, United States Code, relating to classification 
                of positions and General Schedule pay rates.
                    (B) Maximum rate of pay.--The rate of pay for the 
                executive director and other personnel shall not exceed 
                the rate payable for level V of the Executive Schedule 
                under section 5316 of title 5, United States Code.

SEC. 207. EXEMPTION FROM FACA.

    The Federal Advisory Committee Act (5 U.S.C. App.) shall not apply 
to the Commission if all hearings of the Commission are held open to 
the public.

SEC. 208. AUTHORIZATION OF APPROPRIATIONS.

    There are authorized to be appropriated such sums as are necessary 
to carry out this title.

SEC. 209. TERMINATION OF COMMISSION.

    The Commission and the authority of the Commission under this title 
shall terminate on the date that is 3 years after the date on which the 
Commission holds the initial meeting of the Commission.

   TITLE III--INDIAN TRUST ASSET MANAGEMENT DEMONSTRATION PROJECT ACT

SEC. 301. SHORT TITLE.

    This title may be cited as the ``Indian Trust Asset Management 
Demonstration Project Act of 2005''.

SEC. 302. DEFINITIONS.

    In this title:
            (1) Project.--The term ``Project'' means the Indian trust 
        asset management demonstration project established under 
        section 303(a).
            (2) Other indian tribe.--The term ``other Indian tribe'' 
        means an Indian tribe that--
                    (A) is federally recognized;
                    (B) is not a section 131 Indian tribe; and
                    (C) submits an application under section 303(c).
            (3) Secretary.--The term ``Secretary'' means the Secretary 
        of the Interior.
            (4) Section 131 indian tribe.--The term ``section 131 
        Indian tribe'' means any Indian tribe that is participating in 
        the demonstration project under section 131 of title III, 
        division E of the Consolidated Appropriations Act, 2005 (Public 
        Law 108-447; 118 Stat. 2809).

SEC. 303. ESTABLISHMENT OF DEMONSTRATION PROJECT; SELECTION OF 
              PARTICIPATING INDIAN TRIBES.

    (a) In General.--The Secretary shall establish and carry out an 
Indian trust asset management demonstration project, in accordance with 
this title.
    (b) Selection of Participating Indian Tribes.--
            (1) Section 131 indian tribes.--A section 131 Indian tribe 
        shall be eligible to participate in the Project if the section 
        131 Indian tribe submits to the Secretary an application under 
        subsection (c).
            (2) Other tribes.--
                    (A) In general.--Any other Indian tribe shall be 
                eligible to participate in the Project if--
                            (i) the other Indian tribe submits to the 
                        Secretary an application under subsection (c); 
                        and
                            (ii) the Secretary approves the application 
                        of the other Indian tribe.
                    (B) Limitation.--
                            (i) 30 or fewer applicants.--If 30 or fewer 
                        other Indian tribes submit applications under 
                        subsection (c), each of the other Indian tribes 
                        shall be eligible to participate in the 
                        Project.
                            (ii) More than 30 applicants.--
                                    (I) In general.--If more than 30 
                                other Indian tribes submit applications 
                                under subsection (c), the Secretary 
                                shall select 30 other Indian tribes to 
                                participate in the Project.
                                    (II) Preference.--In selecting 
                                other Indian tribes under subclause 
                                (I), the Secretary shall give 
                                preference to other Indian tribes the 
                                applications of which were first 
                                received by the Secretary.
            (3) Notice.--
                    (A) In general.--The Secretary shall provide a 
                written notice to each Indian tribe selected to 
                participate in the Project.
                    (B) Contents.--A notice under subparagraph (A) 
                shall include--
                            (i) a statement that the application of the 
                        Indian tribe has been approved by the 
                        Secretary; and
                            (ii) a requirement that the Indian tribe 
                        shall submit to the Secretary a proposed Indian 
                        trust asset management plan in accordance with 
                        section 304.
    (c) Application.--
            (1) In general.--To be eligible to participate in the 
        Project, an Indian tribe shall submit to the Secretary a 
        written application in accordance with paragraph (2).
            (2) Requirements.--The Secretary shall take into 
        consideration an application under this subsection only if the 
        application--
                    (A) includes a copy of a resolution or other 
                appropriate action by the governing body of the Indian 
                tribe, as determined by the Secretary, in support of or 
                authorizing the application;
                    (B) is received by the Secretary by the date that 
                is 180 days after the date of enactment of this Act; 
                and
                    (C) states that the Indian tribe is requesting to 
                participate in the Project.
    (d) Duration.--The Project shall remain in effect for a period of 8 
years after the date of enactment of this Act.

SEC. 304. INDIAN TRUST ASSET MANAGEMENT PLAN.

    (a) Proposed Plan.--
            (1) Submission.--
                    (A) In general.--Not later than 120 days after the 
                date on which an Indian tribe receives a notice from 
                the Secretary under section 303(b)(3), the Indian tribe 
                shall submit to the Secretary a proposed Indian trust 
                asset management plan in accordance with paragraph (2).
                    (B) Time limitations.--
                            (i) In general.--Except as provided in 
                        clause (ii), any Indian tribe that fails to 
                        submit the Indian trust asset management plan 
                        of the Indian tribe by the date specified in 
                        subparagraph (A) shall no longer be eligible to 
                        participate in the Project.
                            (ii) Extension.--The Secretary shall grant 
                        an extension of not more than 60 days to an 
                        Indian tribe if the Indian tribe submits a 
                        written request for such an extension before 
                        the date described in subparagraph (A).
            (2) Contents.--A proposed Indian trust asset management 
        plan shall include provisions that--
                    (A) identify the trust assets that will be subject 
                to the plan, including financial and nonfinancial trust 
                assets;
                    (B) establish trust asset management objectives and 
                priorities for Indian trust assets that are located 
                within the reservation, or otherwise subject to the 
                jurisdiction, of the Indian tribe;
                    (C) allocate trust asset management funding that is 
                available for the Indian trust assets subject to the 
                plan in order to meet the trust asset management 
                objectives and priorities;
                    (D) if the Indian tribe has contracted or compacted 
                functions or activities under the Indian Self-
                Determination and Education Assistance Act (25 U.S.C. 
                450 et seq.) relating to the management of trust 
                assets--
                            (i) identify the functions or activities 
                        that are being performed by the Indian tribe 
                        under the contracts or compacts; and
                            (ii) describe the proposed management 
                        systems, practices, and procedures that the 
                        Indian tribe will follow; and
                    (E) establish procedures for nonbinding mediation 
                or resolution of any dispute between the Indian tribe 
                and the United States relating to the trust asset 
                management plan.
            (3) Authority of indian tribes to develop systems, 
        practices, and procedures.--For purposes of preparing and 
        carrying out a management plan under this section, an Indian 
        tribe that has compacted or contracted activities or functions 
        under the Indian Self-Determination and Education Assistance 
        Act (25 U.S.C. 450 et seq.), for purposes of carrying out the 
        activities or functions, may develop and carry out trust asset 
        management systems, practices, and procedures that differ from 
        any such systems, practices, and procedures used by the 
        Secretary in managing the trust assets if the systems, 
        practices, and procedures of the Indian tribe meet the 
        requirements of the laws, standards, and responsibilities 
        described in subsection (c).
            (4) Technical assistance and information.--The Secretary 
        shall provide to an Indian tribe any technical assistance and 
        information, including budgetary information, that the Indian 
        tribe determines to be necessary for preparation of a proposed 
        plan on receipt of a written request from the Indian tribe.
    (b) Approval and Disapproval of Proposed Plans.--
            (1) Approval.--
                    (A) In general.--Not later than 120 days after the 
                date on which an Indian tribe submits a proposed Indian 
                trust asset management plan under subsection (a), 
                Secretary shall approve or disapprove the proposed 
                plan.
                    (B) Requirements for disapproval.--The Secretary 
                shall approve a proposed plan unless the Secretary 
                determines that--
                            (i) the proposed plan fails to address a 
                        requirement under subsection (a)(2);
                            (ii) the proposed plan includes 1 or more 
                        provisions that are inconsistent with 
                        subsection (c); or
                            (iii) the cost of implementing the proposed 
                        plan exceeds the amount of funding available 
                        for the management of trust assets that would 
                        be subject to the proposed plan.
            (2) Action on disapproval.--
                    (A) Notice.--If the Secretary disapproves a 
                proposed plan under paragraph (1)(B), the Secretary 
                shall provide to the Indian tribe a written notice of 
                the disapproval, including any reason why the proposed 
                plan was disapproved.
                    (B) Action by tribes.--An Indian tribe the proposed 
                plan of which is disapproved under paragraph (1)(B) may 
                resubmit an amended proposed plan not later than 90 
                days after the date on which the Indian tribe receives 
                the notice under subparagraph (A).
            (3) Failure to approve or disapprove.--If the Secretary 
        fails to approve or disapprove a proposed plan in accordance 
        with paragraph (1), the plan shall be considered to be 
        disapproved under clauses (i) and (ii) of paragraph (1)(B).
            (4) Judicial review.--An Indian tribe may seek judicial 
        review of the determination of the Secretary in accordance with 
        subchapter II of chapter 5, and chapter 7, of title 5, United 
        States Code (commonly known as the ``Administrative Procedure 
        Act'') if--
                    (A) the Secretary disapproves the proposed plan of 
                the Indian tribe under paragraph (1) or (3); and
                    (B) the Indian tribe has exhausted any other 
                administrative remedy available to the Indian tribe.
    (c) Applicable Laws; Standards; Trust Responsibility.--
            (1) Applicable laws.--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--
                    (A) all Federal treaties, statutes, regulations, 
                Executive orders, and court decisions that are 
                applicable to the trust assets, or the management of 
                the trust assets, identified in the plan; and
                    (B) all tribal laws that are applicable to the 
                trust assets, or the management of trust assets, 
                identified in the plan, except to the extent that the 
                laws are inconsistent with the treaties, statutes, 
                regulations, Executive orders, and court decisions 
                referred to in subparagraph (A).
            (2) Standards.--Subject to the laws referred to in 
        paragraph (1)(A), an Indian trust asset management plan shall 
        not be approved unless the Secretary determines that the plan 
        will--
                    (A) protect trust assets from loss, waste, and 
                unlawful alienation;
                    (B) promote the interests of the beneficial owner 
                of the trust asset;
                    (C) conform, to the maximum extent practicable, to 
                the preferred use of the trust asset by the beneficial 
                owner, unless the use is inconsistent with a treaty, 
                statute, regulation, Executive order, or court decision 
                referred to in paragraph (1)(A);
                    (D) protect any applicable treaty-based fishing, 
                hunting and gathering, and similar rights relating to 
                the use, access, or enjoyment of a trust asset; and
                    (E) require that any activity carried out under the 
                plan be carried out in good faith and with loyalty to 
                the beneficial owner of the trust asset.
            (3) Trust responsibility.--An Indian trust asset management 
        plan shall not be approved unless the Secretary determines that 
        the plan is consistent with the trust responsibility of the 
        United States to the Indian tribe and individual Indians.
    (d) Termination of Plan.--
            (1) In general.--An Indian tribe may terminate an Indian 
        trust asset management plan on any date after the date on which 
        a proposed Indian trust asset management plan is approved by 
        providing to the Secretary--
                    (A) a notice of the intent of the Indian tribe to 
                terminate the plan; and
                    (B) a resolution of the governing body of the 
                Indian tribe authorizing the termination of the plan.
            (2) Effective date.--A termination of an Indian trust asset 
        management plan under paragraph (1) takes effect on October 1 
        of the first fiscal year following the date on which a notice 
        is provided to the Secretary under paragraph (1)(A).

SEC. 305. EFFECT OF TITLE.

    (a) Liability.--Nothing in this title, or a trust asset management 
plan approved under section 304, 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.
    (b) Effect on Other Laws.--Nothing in this title amends or 
otherwise affects the application of any treaty, statute, regulation, 
Executive order, or court decision that is applicable to Indian trust 
assets or the management or administration of Indian trust assets, 
including the Indian Self-Determination and Education Assistance Act 
(25 U.S.C. 450 et seq.).
    (c) Trust Responsibility.--Nothing in this title diminishes or 
otherwise affects the trust responsibility of the United States to 
Indian tribes and individual Indians.

    TITLE IV--FRACTIONAL INTEREST PURCHASE AND CONSOLIDATION PROGRAM

SEC. 401. FRACTIONAL INTEREST PROGRAM.

    Section 213 of the Indian Land Consolidation Act (25 U.S.C. 2212) 
is amended--
            (1) by redesignating subsection (d) as subsection (h); and
            (2) by inserting after subsection (c) the following:
    ``(d) Purchase of Interests in Fractionated Indian Land.--
            ``(1) Incentives.--In acquiring an interest under this 
        section in any parcel of land that includes undivided trust or 
        restricted interests owned by not less than 20 separate 
        individuals, as determined by the Secretary, the Secretary may 
        include in the offered purchase price for the interest, in 
        addition to fair market value, an amount not less than $100 and 
        not to exceed $350, as an incentive for the owner to sell the 
        interest to the Secretary.
            ``(2) Sale of all trust or restricted interests.--If an 
        individual agrees to sell to the Secretary all trust or 
        restricted interests owned by the individual, the Secretary may 
        include in the offered purchase price, in addition to fair 
        market value and the incentive described in paragraph (1), an 
        amount not to exceed $2,000, as the Secretary determines to be 
        appropriate, taking into consideration the avoided costs to the 
        United States of probating the estate of the individual or an 
        heir of the individual.
    ``(e) Certain Parcels of Highly Fractionated Indian Land.--
            ``(1) Definition of offeree.--In this subsection, the term 
        `offeree' does not include the Indian tribe that has 
        jurisdiction over a parcel of land for which an offer is made.
            ``(2) Offer to purchase.--
                    ``(A) In general.--If the Secretary determines that 
                a tract of land consists of not less than 200 separate 
                undivided trust or restricted interests, the Secretary 
                may offer to purchase the interests in the tract, in 
                accordance with this subsection, for an amount equal to 
                the sum of--
                            ``(i) the fair market value of the 
                        interests; and
                            ``(ii) an additional amount, to be 
                        determined by the Secretary, not less than 
                        triple the fair market value of the interest.
                    ``(B) Requirement.--The Secretary shall make an 
                offer under subparagraph (A) not later than 3 days 
                before the date on which the Secretary mails a notice 
                of the offer to the offeree under paragraph (3).
            ``(3) Notice of offer.--
                    ``(A) In general.--The Secretary shall provide to 
                an offeree, by certified mail to the last known address 
                of the offeree, a notice of any offer to purchase land 
                under this subsection.
                    ``(B) Inclusions.--A notice under subparagraph (A) 
                shall include in plain language, as determined by the 
                Secretary--
                            ``(i) the date on which the offer was made;
                            ``(ii) the name of the offeree;
                            ``(iii) the location of the tract of land 
                        containing the interest that is the subject of 
                        the offer;
                            ``(iv) the size of the interest of the 
                        offeree, expressed in terms of a fraction or a 
                        percentage of the tract of land described in 
                        clause (iii);
                            ``(v) the fair market value of the tract of 
                        land described in clause (iii);
                            ``(vi) the fair market value of the 
                        interest of the offeree;
                            ``(vii) the amount offered for the interest 
                        in addition to fair market value under 
                        paragraph (2)(A)(ii);
                            ``(viii) a statement that the offeree shall 
                        be considered to have accepted the offer for 
                        the amount stated in the notice unless a notice 
                        of rejection form is deposited in the United 
                        States mail not later than 90 days after the 
                        date on which the offer is received; and
                            ``(ix) a self-addressed, postage pre-paid 
                        notice of rejection form.
            ``(4) Treatment of offer.--
                    ``(A) In general.--An offer made under this 
                subsection shall be considered to be accepted by the 
                offeree if--
                            ``(i) the certified mail receipt for the 
                        offer is signed by the offeree; and
                            ``(ii) the notice of rejection form 
                        described in paragraph (3)(B)(ix) is not 
                        deposited in the United States mail by the date 
                        that is 90 days after the date on which the 
                        offer is received.
                    ``(B) Rejection.--An offer made under this 
                subsection shall be considered to be rejected by the 
                offeree if--
                            ``(i) the notice of rejection form 
                        described in paragraph (3)(B)(ix) is deposited 
                        in the United States mail by the date that is 
                        90 days after the date on which the offer is 
                        received; or
                            ``(ii) the certified mail receipt for the 
                        offer is returned to the Secretary unsigned by 
                        the offeree.
            ``(5) Withdrawal of acceptance; notice.--
                    ``(A) Withdrawal of acceptance.--A person that is 
                considered to have accepted an offer under paragraph 
                (4)(A) may withdraw the acceptance by depositing in the 
                United States mail a notice of withdrawal of acceptance 
                form by the date that is 30 days after the date of 
                receipt of the notice under subparagraph (B).
                    ``(B) Notice.--The Secretary shall provide to any 
                person that is considered to have accepted an offer 
                under paragraph (4)(A), by certified mail, restricted 
                delivery, to the last known address of the person, a 
                preaddressed, postage prepaid withdrawal of acceptance 
                form and a notice stating that--
                            ``(i) the offer made to the person is 
                        considered to be accepted; and
                            ``(ii) the person has the right to withdraw 
                        the acceptance by depositing in the United 
                        States mail the notice of withdrawal of 
                        acceptance form by the date that is 30 days 
                        after the date on which the notice was 
                        delivered to the person.
            ``(6) Notice of acceptance and right to appeal.--The 
        Secretary shall provide to any person that has been served with 
        a notice under paragraph (5)(B) and fails to withdraw the 
        acceptance of the offer in accordance with paragraph (5)(A), by 
        first class mail to the last known address of the person, a 
        notice stating that--
                    ``(A) the offer made to the person is considered to 
                be accepted and not timely withdrawn; and
                    ``(B) after exhausting all administrative remedies, 
                the person may appeal any determination of the 
                Secretary in accordance with paragraph (7).
            ``(7) Judicial review.--A person described in paragraph (6) 
        may appeal any determination of the Secretary with respect to--
                    ``(A) the number of owners of undivided interests 
                in a tract of land required under paragraph (2);
                    ``(B) the fair market value of a tract of land or 
                interest in land;
                    ``(C) the date on which a notice of rejection form 
                was deposited in the United States mail under paragraph 
                (4)(B)(i); or
                    ``(D) the date on which a notice of withdrawal of 
                acceptance form was deposited in the United States mail 
                under paragraph (5)(A).
    ``(f) Offer to Settle Claims Against the United States.--
            ``(1) In general.--The Secretary may make an offer to any 
        individual owner (not including an Indian tribe) of a trust or 
        restricted interest in a tract of land to settle any claim that 
        the owner may have against the United States relating to the 
        specific tract of land of which the interest is a part (not 
        including a claim for an accounting described in title I of the 
        Indian Trust Reform Act of 2005).
            ``(2) Requirements.--An offer to settle claims under this 
        subsection shall--
                    ``(A) be in writing;
                    ``(B) be delivered to an individual owner by the 
                Secretary in person or through first class mail; and
                    ``(C) include--
                            ``(i) the name of the individual owner;
                            ``(ii) a description of the tract of land 
                        to which the offer relates;
                            ``(iii) the amount offered to settle a 
                        claim of the individual owner;
                            ``(iv) the manner and date by which the 
                        individual owner shall accept the offer;
                            ``(v) a statement that the individual owner 
                        is under no obligation to accept the offer;
                            ``(vi) a statement that the individual 
                        owner has the right to consult an attorney or 
                        other advisor before accepting the offer;
                            ``(vii) a statement that acceptance of the 
                        offer by the individual owner will result in a 
                        full and final settlement of all claims, known 
                        and unknown, of the individual owner (including 
                        the heirs and assigns of the individual owner) 
                        against the United States relating to the tract 
                        of land identified in the offer; and
                            ``(viii) a statement that the settlement 
                        proposed by the offer does not cover any claim 
                        for an accounting described in title I of the 
                        Indian Trust Reform Act of 2005.
            ``(3) Acceptance.--No acceptance of an offer under this 
        subsection shall be valid or binding on the individual owner 
        unless the acceptance--
                    ``(A) is in writing;
                    ``(B) is signed by the individual owner;
                    ``(C) is notarized; and
                    ``(D) is attached to a copy of, or contains all 
                material terms of, the offer to which the acceptance 
                corresponds.
            ``(4) Limitation.--No offer to purchase an interest under 
        this section or any other provision of law shall be conditioned 
        on the acceptance of an offer to settle a claim under this 
        subsection.
            ``(5) Other laws.--The authority of the Secretary to settle 
        claims under this subsection shall be in addition to, and not 
        in lieu of, the authority of the Secretary to settle claims 
        under any other provision of Federal law.
    ``(g) Borrowing From Treasury.--
            ``(1) Issuance of obligations.--
                    ``(A) In general.--To the extent approved in annual 
                appropriations Acts, the Secretary may issue to the 
                Secretary of the Treasury obligations in such amounts 
                as the Secretary determines to be necessary to acquire 
                interests under this Act, subject to approval of the 
                Secretary of the Treasury, and bearing interest at a 
                rate to be determined by the Secretary of the Treasury, 
                taking into consideration current market yields on 
                outstanding marketable obligations of the United States 
                of comparable maturities to the obligations.
                    ``(B) Limitation.--The aggregate amount of 
                obligations under subparagraph (A) outstanding at any 
                time shall not exceed $[______].
            ``(2) Forms and denominations.--The obligations issued 
        under paragraph (1) shall be in such forms and denominations, 
        and subject to such other terms and conditions, as the 
        Secretary of the Treasury may prescribe.
            ``(3) Repayment.--
                    ``(A) In general.--Revenues derived from land 
                restored to the Tribe under this Act shall be used by 
                the Secretary to pay the principal and interest on the 
                obligations issued under paragraph (1).
                    ``(B) Assurance of repayment.--The Secretary shall 
                ensure, to the maximum extent possible, that the 
                revenues described in subparagraph (A) provide 
                reasonable assurance of repayment of the obligations 
                issued under paragraph (1).
            ``(4) Authorization of appropriations.--There are 
        authorized to be appropriated to the Secretary for each fiscal 
        year beginning after the date of enactment of this subsection 
        such sums as are necessary to cover any difference between--
                    ``(A) the total amount of repayments of principal 
                and interest on obligations issued to the Secretary of 
                the Treasury under paragraph (1) during the previous 
                fiscal year; and
                    ``(B) the total amount of repayments described in 
                subparagraph (A) that were contractually required to be 
                made to the Secretary of the Treasury during that 
                fiscal year.
    ``(h) Receipt of Payments Have No Impact on Benefits Under Other 
Federal Programs.--The receipt of a payment by an offeree under this 
title shall not be--
            ``(1) subject to Federal or State income tax; or
            ``(2) treated as benefits or otherwise taken into account 
        in determining the eligibility of the offeree for, or the 
        amount of benefits under, any other Federal program, including 
        the social security program, the medicare program, the medicaid 
        program, the State children's health insurance program, the 
        food stamp program, or the Temporary Assistance for Needy 
        Families program.''.

 TITLE V--RESTRUCTURING BUREAU OF INDIAN AFFAIRS AND OFFICE OF SPECIAL 
                                TRUSTEE

SEC. 501. PURPOSE.

    The purpose of this title is to ensure a more effective and 
accountable administration of duties of the Secretary of the Interior 
with respect to providing services and programs to Indians and Indian 
tribes, including the management of Indian trust resources.

SEC. 502. DEFINITIONS.

    In this title:
            (1) Bureau.--The term ``Bureau'' means the Bureau of Indian 
        Affairs.
            (2) Office.--The term ``Office'' means the Office of Trust 
        Reform Implementation and Oversight referred to in section 
        503(c).
            (3) Secretary.--The term ``Secretary'' means the Secretary 
        of the Interior.
            (4) Under secretary.--The term ``Under Secretary'' means 
        the individual appointed to the position of Under Secretary for 
        Indian Affairs, established by section 503(a).

SEC. 503. UNDER SECRETARY FOR INDIAN AFFAIRS.

    (a) Establishment of Position.--There is established in the 
Department of the Interior the position of Under Secretary for Indian 
Affairs, who shall report directly to the Secretary.
    (b) Appointment.--
            (1) In general.--Except as provided in paragraph (2), the 
        Under Secretary shall be appointed by the President, by and 
        with the advice and consent of the Senate.
            (2) Exception.--The officer serving as the Assistant 
        Secretary for Indian Affairs on the date of enactment of this 
        Act may assume the position of Under Secretary without 
        appointment under paragraph (1) if--
                    (A) the officer was appointed as Assistant 
                Secretary for Indian Affairs by the President by and 
                with the advice and consent of the Senate; and
                    (B) not later than 180 days after the date of 
                enactment of this Act, the Secretary approves the 
                assumption.
    (c) Duties.--In addition to the duties transferred to the Under 
Secretary under sections 504 and 505, the Under Secretary, acting 
through an Office of Trust Reform Implementation and Oversight, shall--
            (1) carry out any activity relating to trust fund accounts 
        and trust resource management of the Bureau (except any 
        activity carried out under the Office of the Special Trustee 
        for American Indians before the date on which the Office of the 
        Special Trustee is abolished), in accordance with the American 
        Indian Trust Fund Management Reform Act of 1994 (25 U.S.C. 4001 
        et seq.);
            (2) develop and maintain an inventory of Indian trust 
        assets and resources;
            (3) coordinate with the Special Trustee for American 
        Indians to ensure an orderly transition of the functions of the 
        Special Trustee under section 505;
            (4) supervise any activity carried out by the Department of 
        the Interior, including--
                    (A) to the extent that the activities relate to 
                Indian affairs, activities carried out by--
                            (i) the Commissioner of Reclamation;
                            (ii) the Director of the Bureau of Land 
                        Management; and
                            (iii) the Director of the Minerals 
                        Management Service; and
                    (B) intergovernmental relations between the Bureau 
                and Indian tribal governments;
            (5) to the maximum extent practicable, coordinate 
        activities and policies of the Bureau with activities and 
        policies of--
                    (A) the Bureau of Reclamation;
                    (B) the Bureau of Land Management; and
                    (C) the Minerals Management Service;
            (6) provide for regular consultation with Indians and 
        Indian tribes that own interests in trust resources and trust 
        fund accounts;
            (7) manage and administer Indian trust resources in 
        accordance with any applicable Federal law;
            (8) take steps to protect the security of data relating to 
        individual Indian and Indian tribal trust accounts; and
            (9) take any other measure the Under Secretary determines 
        to be necessary with respect to Indian affairs.

SEC. 504. TRANSFER OF FUNCTIONS OF ASSISTANT SECRETARY FOR INDIAN 
              AFFAIRS.

    (a) Transfer of Functions.--There is transferred to the Under 
Secretary any function of the Assistant Secretary for Indian Affairs 
that has not been carried out by the Assistant Secretary as of the date 
of enactment of this Act.
    (b) Determinations of Certain Functions by the Office of Management 
and Budget.--If necessary, the Office of Management and Budget shall 
make any determination relating to the functions transferred under 
subsection (a).
    (c) Personnel Provisions.--
            (1) Appointments.--The Under Secretary may appoint and fix 
        the compensation of such officers and employees as the Under 
        Secretary determines to be necessary to carry out any function 
        transferred under this section.
            (2) Requirements.--Except as otherwise provided by law--
                    (A) an officer or employee described in paragraph 
                (1) shall be appointed in accordance with the civil 
                service laws; and
                    (B) the compensation of the officer or employee 
                shall be fixed in accordance with title 5, United 
                States Code.
    (d) Delegation and Assignment.--
            (1) In general.--Except as otherwise expressly prohibited 
        by law or otherwise provided by this section, the Under 
        Secretary may--
                    (A) delegate any of the functions transferred to 
                the Under Secretary by this section and any function 
                transferred or granted to the Under Secretary after the 
                date of enactment of this Act to such officers and 
                employees of the Office as the Under Secretary may 
                designate; and
                    (B) authorize successive redelegations of such 
                functions as the Under Secretary determines to be 
                necessary or appropriate.
            (2) Delegation.--No delegation of functions by the Under 
        Secretary under this section shall relieve the Under Secretary 
        of responsibility for the administration of the functions.
    (e) Reorganization.--The Under Secretary may allocate or reallocate 
any function transferred under this section among the officers of the 
Office, and establish, consolidate, alter, or discontinue such 
organizational entities in the Office, as the Under Secretary 
determines to be necessary or appropriate.
    (f) Rules.--The Under Secretary may prescribe, in accordance with 
the provisions of chapters 5 and 6 of title 5, United States Code, such 
rules and regulations as the Under Secretary determines to be necessary 
or appropriate to administer and manage the functions of the Office.
    (g) Transfer and Allocations of Appropriations and Personnel.--
            (1) In general.--Except as otherwise provided in this 
        section, the personnel employed in connection with, and the 
        assets, liabilities, contracts, property, records, and 
        unexpended balances of appropriations, authorizations, 
        allocations, and other funds employed, used, held, arising 
        from, available to, or to be made available in connection with, 
        the functions transferred by this section, subject to section 
        1531 of title 31, United States Code, shall be transferred to 
        the Office.
            (2) Unexpended funds.--Unexpended funds transferred 
        pursuant to this subsection shall be used only for the purposes 
        for which the funds were originally authorized and 
        appropriated.
    (h) Incidental Transfers.--
            (1) In general.--The Director of the Office of Management 
        and Budget, at any time the Director may provide, may make such 
        determinations as are necessary with regard to the functions 
        transferred by this section, and make such additional 
        incidental dispositions of personnel, assets, liabilities, 
        grants, contracts, property, records, and unexpended balances 
        of appropriations, authorizations, allocations, and other funds 
        held, used, arising from, available to, or to be made available 
        in connection with such functions, as are necessary, to carry 
        out this section.
            (2) Termination of affairs.--The Director of the Office of 
        Management and Budget shall provide for the termination of the 
        affairs of all entities terminated by this section and for any 
        further measures and dispositions as are necessary to 
        effectuate the purposes of this section.
    (i) Effect on Personnel.--
            (1) In general.--Except as otherwise provided by this 
        section, the transfer pursuant to this section of full-time 
        personnel (except special Government employees) and part-time 
        personnel holding permanent positions shall not cause any such 
        employee to be separated or reduced in grade or compensation 
        for a period of at least 1 year after the date of transfer of 
        the employee under this section.
            (2) Executive schedule positions.--Except as otherwise 
        provided in this section, any person who, on the day preceding 
        the date of enactment of this Act, held a position compensated 
        in accordance with the Executive Schedule prescribed in chapter 
        53 of title 5, United States Code, and who, without a break in 
        service, is appointed to a position in the Office having duties 
        comparable to the duties performed immediately preceding such 
        appointment shall continue to be compensated in the new 
        position at not less than the rate provided for the previous 
        position, for the duration of the service of the person in the 
        new position.
            (3) Termination of certain positions.--Positions whose 
        incumbents are appointed by the President, by and with the 
        advice and consent of the Senate, the functions of which are 
        transferred by this title, shall terminate on the date of 
        enactment of this Act.
    (j) Separability.--If a provision of this section or the 
application of this section to any person or circumstance is held 
invalid, neither the remainder of this section nor the application of 
the provision to other persons or circumstances shall be affected.
    (k) Transition.--The Under Secretary may use--
            (1) the services of the officers, employees, and other 
        personnel of the Assistant Secretary for Indian Affairs 
        relating to functions transferred to the Office by this 
        section; and
            (2) funds appropriated to the functions for such period of 
        time as may reasonably be needed to facilitate the orderly 
        implementation of this section.
    (l) References.--Any reference in a Federal law, Executive order, 
rule, regulation, delegation of authority, or document relating to the 
Assistant Secretary for Indian Affairs, with respect to functions 
transferred under this section, shall be deemed to be a reference to 
the Under Secretary.
    (m) Recommended Legislation.--Not later than 180 days after the 
effective date of this title, the Under Secretary, in consultation with 
the appropriate committees of Congress and the Director of the Office 
of Management and Budget, shall submit to Congress any recommendations 
relating to additional technical and conforming amendments to Federal 
law to reflect the changes made by this section.
    (n) Effect of Section.--
            (1) Continuing effect of legal documents.--Any legal 
        document relating to a function transferred by this section 
        that is in effect on the date of enactment of this Act shall 
        continue in effect in accordance with the terms of the document 
        until the document is modified or terminated by--
                    (A) the President;
                    (B) the Under Secretary;
                    (C) a court of competent jurisdiction; or
                    (D) operation of Federal or State law.
            (2) Proceedings not affected.--This section shall not 
        affect any proceeding (including a notice of proposed 
        rulemaking, an administrative proceeding, and an application 
        for a license, permit, certificate, or financial assistance) 
        relating to a function transferred under this section that is 
        pending before the Assistant Secretary on the date of enactment 
        of this Act.

SEC. 505. OFFICE OF SPECIAL TRUSTEE FOR AMERICAN INDIANS.

    (a) Termination.--Notwithstanding sections 302 and 303 of the 
American Indian Trust Fund Management Reform Act of 1994 (25 U.S.C. 
4042; 4043), the Office of Special Trustee for American Indians shall 
terminate on the effective date of this section.
    (b) Transfer of Functions.--There is transferred to the Under 
Secretary any function of the Special Trustee for American Indians that 
has not been carried out by the Special Trustee as of the effective 
date of this section.
    (c) Determinations of Certain Functions by the Office of Management 
and Budget.--If necessary, the Office of Management and Budget shall 
make any determination relating to the functions transferred under 
subsection (b).
    (d) Personnel Provisions.--
            (1) Appointments.--The Under Secretary may appoint and fix 
        the compensation of such officers and employees as the Under 
        Secretary determines to be necessary to carry out any function 
        transferred under this section.
            (2) Requirements.--Except as otherwise provided by law--
                    (A) any officer or employee described in paragraph 
                (1) shall be appointed in accordance with the civil 
                service laws; and
                    (B) the compensation of such an officer or employee 
                shall be fixed in accordance with title 5, United 
                States Code.
    (e) Delegation and Assignment.--
            (1) In general.--Except as otherwise expressly prohibited 
        by law or otherwise provided by this section, the Under 
        Secretary may--
                    (A) delegate any of the functions transferred to 
                the Under Secretary under this section and any function 
                transferred or granted to the Under Secretary after the 
                effective date of this section to such officers and 
                employees of the Office as the Under Secretary may 
                designate; and
                    (B) authorize successive redelegations of the 
                functions as are necessary or appropriate.
            (2) Delegation.--No delegation of functions by the Under 
        Secretary under this section shall relieve the Under Secretary 
        of responsibility for the administration of the functions.
    (f) Reorganization.--The Under Secretary may allocate or reallocate 
any function transferred under subsection (b) among the officers of the 
Office, and establish, consolidate, alter, or discontinue such 
organizational entities in the Office as the Under Secretary determines 
to be necessary or appropriate.
    (g) Rules.--The Under Secretary may prescribe, in accordance with 
the provisions of chapters 5 and 6 of title 5, United States Code, such 
rules and regulations as the Under Secretary determines to be necessary 
or appropriate to administer and manage the functions of the Office.
    (h) Transfer and Allocations of Appropriations and Personnel.--
            (1) In general.--Except as otherwise provided in this 
        section, the personnel employed in connection with, and the 
        assets, liabilities, contracts, property, records, and 
        unexpended balances of appropriations, authorizations, 
        allocations, and other funds employed, used, held, arising 
        from, available to, or to be made available in connection with 
        the functions transferred by this section, subject to section 
        1531 of title 31, United States Code, shall be transferred to 
        the Office.
            (2) Unexpended funds.--Unexpended funds transferred 
        pursuant to this subsection shall be used only for the purposes 
        for which the funds were originally authorized and 
        appropriated.
    (i) Incidental Transfers.--
            (1) In general.--The Director of the Office of Management 
        and Budget, at any time the Director may provide, may make such 
        determinations as are necessary with regard to the functions 
        transferred by this section, and make such additional 
        incidental dispositions of personnel, assets, liabilities, 
        grants, contracts, property, records, and unexpended balances 
        of appropriations, authorizations, allocations, and other funds 
        held, used, arising from, available to, or to be made available 
        in connection with such functions, as are necessary, to carry 
        out this section.
            (2) Termination of affairs.--The Director of the Office of 
        Management and Budget shall provide for the termination of the 
        affairs of all entities terminated by this section and for any 
        further measures and dispositions as are necessary to 
        effectuate the purposes of this section.
    (j) Effect on Personnel.--
            (1) In general.--Except as otherwise provided by this 
        section, the transfer pursuant to this section of full-time 
        personnel (except special Government employees) and part-time 
        personnel holding permanent positions shall not cause any such 
        employee to be separated or reduced in grade or compensation 
        for a period of at least 1 year after the date of transfer of 
        the employee under this section.
            (2) Executive schedule positions.--Except as otherwise 
        provided in this section, any person who, on the day preceding 
        the effective date of this section, held a position compensated 
        in accordance with the Executive Schedule prescribed in chapter 
        53 of title 5, United States Code, and who, without a break in 
        service, is appointed to a position in the Office having duties 
        comparable to the duties performed immediately preceding such 
        appointment, shall continue to be compensated in the new 
        position at not less than the rate provided for the previous 
        position, for the duration of the service of the person in the 
        new position.
            (3) Termination of certain positions.--Positions the 
        incumbents of which are appointed by the President, by and with 
        the advice and consent of the Senate, and the functions of 
        which are transferred by this title, shall terminate on the 
        effective date of this section.
    (k) Separability.--If a provision of this section or the 
application of this section to any person or circumstance is held 
invalid, neither the remainder of this section nor the application of 
the provision to other persons or circumstances shall be affected.
    (l) Transition.--The Under Secretary may use--
            (1) the services of the officers, employees, and other 
        personnel of the Special Trustee relating to functions 
        transferred to the Office by this section; and
            (2) funds appropriated to those functions for such period 
        of time as may reasonably be needed to facilitate the orderly 
        implementation of this section.
    (m) References.--Any reference in a Federal law, Executive order, 
rule, regulation, delegation of authority, or document relating to the 
Special Trustee, with respect to functions transferred under this 
section, shall be deemed to be a reference to the Under Secretary.
    (n) Recommended Legislation.--Not later than 180 days after the 
effective date of this title, the Under Secretary, in consultation with 
the appropriate committees of Congress and the Director of the Office 
of Management and Budget, shall submit to Congress any recommendations 
relating to additional technical and conforming amendments to Federal 
law to reflect the changes made by this section.
    (o) Effect of Section.--
            (1) Continuing effect of legal documents.--Any legal 
        document relating to a function transferred by this section 
        that is in effect on the effective date of this section shall 
        continue in effect in accordance with the terms of the document 
        until the document is modified or terminated by--
                    (A) the President;
                    (B) the Under Secretary;
                    (C) a court of competent jurisdiction; or
                    (D) operation of Federal or State law.
            (2) Proceedings not affected.--This section shall not 
        affect any proceeding (including a notice of proposed 
        rulemaking, an administrative proceeding, and an application 
        for a license, permit, certificate, or financial assistance) 
        relating to a function transferred under this section that is 
        pending before the Special Trustee on the effective date of 
        this section.
    (p) Effective Date.--This section shall take effect on December 31, 
2008.

SEC. 506. HIRING PREFERENCE.

    In appointing or otherwise hiring any employee to the Office, the 
Under Secretary shall give preference to Indians in accordance with 
section 12 of the Act of June 8, 1934 (25 U.S.C. 472).

SEC. 507. AUTHORIZATION OF APPROPRIATIONS.

    There are authorized to be appropriated such sums as are necessary 
to carry out this title.

                 TITLE VI--AUDIT OF INDIAN TRUST FUNDS

SEC. 601. AUDITS AND REPORTS.

    (a) Financial Statements and Internal Control Report.--
            (1) Financial statements.--For each fiscal year beginning 
        after the enactment of this Act, the Secretary of Interior 
        shall prepare financial statements for individual Indian, 
        Indian tribal, and other Indian trust accounts in accordance 
        with generally accepted accounting principles of the Federal 
        Government.
            (2) Internal control report.--Concurrently with the 
        financial statements under by paragraph (1), the Secretary 
        shall prepare an internal control report that--
                    (A) establishes the responsibility of the Secretary 
                for establishing and maintaining an adequate internal 
                control structure and procedures for financial 
                reporting under this Act; and
                    (B) assesses the effectiveness of the internal 
                control structure and procedures for financial 
                reporting under subparagraph (A) during the preceding 
                fiscal year.
    (b) Independent External Auditor.--
            (1) In general.--The Comptroller General of the United 
        States shall enter into a contract with an independent external 
        auditor to conduct an audit and prepare a report in accordance 
        with this subparagraph.
            (2) Audit report.--An independent external auditor shall 
        submit to the Committee on Indian Affairs of the Senate, and 
        make available to the public, an audit of the financial 
        statements under subsection (a)(1) in accordance with--
                    (A) generally accepted auditing standards of the 
                Federal Government; and
                    (B) the financial audit manual jointly issued by 
                the Government Accountability Office and the Council on 
                Integrity and Efficiency of the President.
            (3) Attestation and report.--In conducting the audit under 
        paragraph (2), the independent external auditor shall attest 
        to, and report on, the assessment of internal controls made by 
        the Secretary under subsection (a)(2)(B).
            (4) Payment for audit and report.--
                    (A) Transfer of funds.--On request of the 
                Comptroller General, the Secretary shall transfer to 
                the Government Accountability Office from funds made 
                available for administrative expenses of the Department 
                of Interior the amount requested by the Comptroller 
                General to pay for an annual audit and report.
                    (B) Credit to account.--
                            (i) In general.--The Controller General 
                        shall credit the amount of any funds 
                        transferred under subparagraph (A) to the 
                        account established for salaries and expenses 
                        of the Government Accountability Office.
                            (ii) Availability.--Any amount credited 
                        under clause (i) shall be made available on 
                        receipt, without fiscal year limitation, to 
                        cover the full costs of the audit and report.

SEC. 602. AUTHORIZATION OF APPROPRIATIONS.

    There are authorized to be appropriated such sums as are necessary 
to carry out this title.
                                 <all>
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