II 

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. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE; TABLE OF CONTENTS. 

4 (a) SHORT TITLE.—This Act may be cited as the 

5 ‘‘Indian Trust Reform Act of 2005’’. 

6 (b) TABLE OF CONTENTS.—The table of contents for 

7 this Act is as follows: 

Sec. 1. Short title; table of contents. 

TITLE I—SETTLEMENT OF LITIGATION CLAIMS 

Sec. 101. Findings. 

Sec. 102. Definitions. 
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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. 
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1 TITLE I—SETTLEMENT OF 

2 LITIGATION CLAIMS 

3 SEC. 101. FINDINGS. 

4 Congress finds that— 

5 (1) Congress has appropriated tens of millions 

6 of dollars for purposes of providing an historical ac7 counting of funds held in Individual Indian Money 

8 accounts; 

9 (2) as of the date of enactment of this Act, the 

10 efforts of the Federal Government in conducting his11 torical accounting activities have provided informa12 tion regarding the feasibility and cost of providing a 

13 complete historical accounting of IIM account funds; 

14 (3) in the case of many IIM accounts, a com15 plete historical accounting— 

16 (A) may be impossible because necessary 

17 records and accounting data are missing or de18 stroyed; 

19 (B) may take several years to perform even 

20 if necessary records are available; 

21 (C) may cost the United States hundreds 

22 of millions and possibly several billion dollars; 

23 and 
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1 (D) may be impossible to complete before 

2 the deaths of many elderly IIM account bene3 ficiaries; 

4 (4) without a complete historical accounting, it 

5 may be difficult or impossible to ascertain the extent 

6 of losses in an IIM account as a result of accounting 

7 errors or mismanagement of funds, or the correct 

8 amount of interest accrued or owned on the IIM ac9 count; 

10 (5) the total cost to the United States of pro11 viding a complete historical accounting of an IIM ac12 count may exceed— 

13 (A) the current balance of the IIM ac14 count; 

15 (B) the total sums of money that have 

16 passed through the IIM account; and 

17 (C) the enforceable liability of the United 

18 States for losses from, and interest in, the IIM 

19 account; 

20 (6)(A) the delays in obtaining an accounting 

21 and in pursuing accounting claims in the case styled 

22 Cobell v. Norton, Civil Action No. 96–1285 (RCL) 

23 in the United States District Court for the District 

24 of Columbia, have created a great hardship on IIM 

25 account beneficiaries; and 
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1 (B) many beneficiaries and their representatives 

2 have indicated that they would rather receive mone3 tary compensation than experience the continued 

4 frustration and delay associated with an accounting 

5 of transactions and funds in their IIM accounts; 

6 (7) it is appropriate for Congress, taking into 

7 consideration the findings under paragraphs (1) 

8 through (6), to provide benefits that are reasonably 

9 calculated to be fair and appropriate in lieu of per10 forming an accounting of an IIM account, or assum11 ing liability for errors in such an accounting, mis12 management of IIM account funds (including unde13 termined amounts of interest in IIM accounts, losses 

14 in which may never be discovered or quantified if a 

15 complete historical accounting cannot be performed), 

16 or breach of fiduciary duties with respect to the ad17 ministration of IIM accounts, in order to transmute 

18 claims by the beneficiaries of IIM accounts for unde19 termined or unquantified accounting losses and in20 terest to a fixed amount to be distributed to the 

21 beneficiaries of IIM accounts; 

22 (8) in determining the amount of the payments 

23 to be distributed as described in paragraph (7), Con24 gress should take into consideration, in addition to 
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1 the factors described in paragraphs (1) through 

2 (6)— 

3 (A) the risks and costs to IIM account 

4 beneficiaries, as well as any delay, associated 

5 with the litigation of claims that will be resolved 

6 by this title; and 

7 (B) the benefits to IIM account bene8 ficiaries available under this title; 

9 (9) the situation of the Osage Nation is unique 

10 because, among other things, income from the min11 eral estate of the Osage Nation is distributed to in12 dividuals through headright interests that belong not 

13 only to members of the Osage Nation, but also to 

14 members of other Indian tribes, and to non-Indians; 

15 and 

16 (10) due to the unique situation of the Osage 

17 Nation, the Osage Nation, on its own behalf, has 

18 filed various actions in Federal district court and the 

19 United States Court of Federal Claims seeking ac20 countings, money damages, and other legal and equi21 table relief 

22 SEC. 102. DEFINITIONS. 

23 In this title: 

24 (1) ACCOUNTING CLAIM.—The term ‘‘account25 ing claim’’ means any claim for an historical ac-
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1 counting of a claimant against the United States 

2 under the Litigation. 

3 (2) CLAIMANT.—The term ‘‘claimant’’ means 

4 any beneficiary of an IIM account (including an heir 

5 of such a beneficiary) that was living on the date of 

6 enactment of the American Indian Trust Fund Man7 agement Reform Act of 1994 (25 U.S.C. 4001 et 

8 seq.). 

9 (3) IIM ACCOUNT.—The term ‘‘IIM account’’ 

10 means an Individual Indian Money account adminis11 tered by the Bureau of Indian Affairs. 

12 (4) LITIGATION.—The term ‘‘Litigation’’ means 

13 the case styled Cobell v. Norton, Civil Action No. 

14 96–1285 (RCL) in the United States District Court 

15 for the District of Columbia. 

16 (5) SECRETARY.—The term ‘‘Secretary’’ means 

17 the Secretary of the Treasury. 

18 (6) SETTLEMENT FUND.—The term ‘‘Settle19 ment Fund’’ means the fund established by section 

20 103(a). 

21 (7) SPECIAL MASTER.—The term ‘‘Special Mas22 ter’’ means the special master appointed by the Sec23 retary under section 103(b) to administer the Settle24 ment Fund. 
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1 SEC. 103. INDIVIDUAL INDIAN ACCOUNTING CLAIM SETTLE2 MENT FUND. 

3 (a) ESTABLISHMENT.— 

4 (1) IN GENERAL.—There is established in the 

5 general fund of the Treasury a fund, to be known 

6 as the ‘‘Individual Indian Accounting Claim Settle7 ment Fund’’. 

8 (2) INITIAL DEPOSIT.—The Secretary shall de9 posit into the Settlement Fund to carry out this title 

10 not less than $øll¿,000,000,000 from funds ap11 propriated under section 1304 of title 31, United 

12 States Code. 

13 (b) SPECIAL MASTER.—As soon as practicable after 

14 the date of enactment of this Act, the Secretary shall ap15 point a Special Master to administer the Settlement Fund 

16 in accordance with this title. 

17 (c) DISTRIBUTION.— 

18 (1) IN GENERAL.—The Special Master shall use 

19 not less than 80 percent of amounts in the Settle20 ment Fund to make payments to claimants in ac21 cordance with section 104. 

22 (2) METHOD OF VALUATION AND CONSTITU23 TIONAL CLAIMS.—The Special Master may use not 

24 to exceed 12 percent of amounts in the Settlement 

25 Fund to make payments to claimants described in— 

26 (A) section 106; or 
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1 (B) section 107. 

2 (3) ATTORNEYS’ FEES.—The Special Master 

3 may use not to exceed øll¿ percent of amounts 

4 in the Settlement Fund to make payments to claim5 ants for attorneys’ fees in accordance with section 

6 108. 

7 (d) COSTS OF ADMINISTRATION.—The Secretary may 

8 use not more than øll¿ percent of amounts in the Set9 tlement Fund to pay the costs of— 

10 (1) administering the Settlement Fund; and 

11 (2) otherwise carrying out this title. 

12 SEC. 104. GENERAL DISTRIBUTION. 

13 (a) PAYMENTS TO CLAIMANTS.— 

14 (1) IN GENERAL.—Not later than 1 year after 

15 the date on which the Secretary publishes in the 

16 Federal Register the regulations described in sub17 section (d), the Special Master shall distribute to 

18 each claimant from the Settlement Fund an amount 

19 equal to the sum of— 

20 (A) the per capita share of the claimant of 

21 $øll¿,000,000,000 of the amounts described 

22 in section 103(c)(1); and 

23 (B) of $øll¿,000,000,000 of the 

24 amounts described in section 103(c)(1), the ad25 ditional share of the claimant, to be determined 
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1 in accordance with a formula established by the 

2 Secretary under subsection (d)(1). 

3 (2) HEIRS OF CLAIMANTS.— 

4 (A) IN GENERAL.—An heir of a claimant 

5 shall receive the entire amount distributed to 

6 the claimant under paragraphs (1) and (3). 

7 (B) MULTIPLE HEIRS.—If a claimant has 

8 more than 1 heir, the amount distributed to the 

9 claimant under paragraphs (1) and (3) shall be 

10 divided equally among the heirs of the claimant. 

11 (3) RESIDUAL AMOUNTS.—After making each 

12 distribution required under sections 106, 107, and 

13 108, the Special Master shall distribute to claimants 

14 the remainder of the amounts described in para15 graphs (2) and (3) of section 103(c), in accordance 

16 with paragraph (1)(B). 

17 (b) REQUIREMENT FOR DISTRIBUTION.—The Special 

18 Master shall not make a distribution to a claimant under 

19 subsection (a) until the claimant executes a waiver and 

20 release of accounting claims against the United States in 

21 accordance with section 109. 

22 (c) LOCATION OF CLAIMANTS.— 

23 (1) RESPONSIBILITY OF SECRETARY OF THE

24 INTERIOR.—The Secretary of the Interior shall pro25 vide to the Special Master any information, includ-
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1 ing IIM account information, that the Special Mas2 ter determines to be necessary to— 

3 (A) identify any claimant under this title; 

4 or 

5 (B) apply a formula established by the 

6 Secretary under subsection (d). 

7 (2) CLAIMANTS OF UNKNOWN LOCATION.— 

8 (A) IN GENERAL.—The Special Master 

9 shall deposit in an account, for future distribu10 tion, amounts under this title for each claimant 

11 who— 

12 (i) is entitled to receive a distribution 

13 under this title, as determined by the Spe14 cial Master; and 

15 (ii) has not been located by the Spe16 cial Master as of the date on which a dis17 tribution is required under subsection 

18 (a)(1). 

19 (B) LOCATION OF CLAIMANTS.— 

20 (i) RESPONSIBILITY OF SECRETARY

21 OF THE INTERIOR.—The Secretary of the 

22 Interior shall provide to the Special Master 

23 any information and assistance necessary 

24 to locate a claimant described in subpara25 graph (A)(ii). 
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1 (ii) CONTRACTS.—The Special Master 

2 may enter into contracts with an Indian 

3 tribe or an organization representing indi4 vidual Indians in order to locate a claimant 

5 described in subparagraph (A)(ii). 

6 (d) REGULATIONS.— 

7 (1) IN GENERAL.—The Secretary shall promul8 gate any regulations that the Secretary determines 

9 to be necessary to carry out this title, including reg10 ulations establishing a formula to determine the 

11 share of each claimant of payments under subsection 

12 (a)(1). 

13 (2) FACTORS FOR CONSIDERATION.—In devel14 oping the formula described in paragraph (1), the 

15 Secretary shall take into consideration the amount 

16 of funds that have passed through the IIM account 

17 of each claimant during the period beginning on 

18 January 1, 1980, and ending on December 31, 

19 2005, or another period, as the Secretary determines 

20 to be appropriate. 

21 SEC. 105. CLAIMS RELATING TO SHARE DETERMINATION. 

22 (a) IN GENERAL.—Subject to subsection (b), any 

23 claimant may seek judicial review of the determination of 

24 the Special Master with respect to the amount of a share 

25 payment of a claimant under section 104(a)(1). 
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1 (b) REQUIREMENTS.—A claimant shall file a claim 

2 under subsection (a)— 

3 (1) not later than 180 days after the date of re4 ceipt of a notice by the claimant under subsection 

5 (c); and 

6 (2) in the United States district court for the 

7 district in which the claimant resides. 

8 (c) NOTICE.—The Secretary shall provide to each 

9 claimant a notice of the right of any claimant to seek judi10 cial review of a determination of the Special Master with 

11 respect to the amount of the share payment of the claim12 ant under section 105. 

13 (d) SUBSEQUENT APPEALS.—A claim relating to a 

14 determination of a United States district court relating 

15 to an appeal under subsection (a) shall be filed only in 

16 the United States Court of Appeals for the District of Co17 lumbia. 

18 SEC. 106. CLAIMS RELATING TO METHOD OF VALUATION. 

19 (a) IN GENERAL.—Not later than 1 year after the 

20 date of enactment of this Act, a claimant may seek judicial 

21 review of the method of distribution of a payment to the 

22 claimant under section 104(a). 

23 (b) REQUIREMENTS.—A claim under subsection 

24 (a)— 
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1 (1) shall not be filed as part of a class action 

2 claim against any party; and 

3 (2) shall be filed only in the United States 

4 Court of Federal Claims. 

5 (c) AVAILABLE AMOUNTS.— 

6 (1) IN GENERAL.—The Special Master shall use 

7 only amounts described in section 103(c)(2)(A) to 

8 satisfy an award under a claim under this section. 

9 (2) PAYMENTS TO CLAIMANTS.—A claimant 

10 that files a claim under this subsection shall not be 

11 eligible to receive a distribution under section 

12 104(a). 

13 (d) EFFECT OF CLAIM.—The filing of a claim under 

14 this section shall be considered to be a waiver by the claim15 ant of any right to an award under section 104. 

16 SEC. 107. CLAIMS RELATING TO CONSTITUTIONALITY. 

17 (a) IN GENERAL.—Any claimant may seek judicial 

18 review in the United States District Court for the District 

19 of Columbia of the constitutionality of the application of 

20 this title to an individual claimant. 

21 (b) PROCEDURE.— 

22 (1) JUDICIAL PANEL.—A claim under this sec23 tion shall be determined by a panel of 3 judges, to 

24 be appointed by the chief judge of the United States 

25 District Court for the District of Columbia. 
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1 (2) CONSOLIDATION OF CLAIMS.— 

2 (A) IN GENERAL.—The judicial panel may 

3 consolidate claims under this section, as the ju4 dicial panel determines to be appropriate. 

5 (B) PROHIBITION OF CLASS ACTION

6 CASES.—A claim under this section shall not be 

7 filed as part of a class action claim against any 

8 party. 

9 (3) DETERMINATION.—The judicial panel may 

10 award a claimant such relief as the judicial panel de11 termines to be appropriate, including monetary com12 pensation. 

13 (c) AVAILABLE AMOUNTS.— 

14 (1) IN GENERAL.—The Special Master shall use 

15 only amounts described in section 103(c)(2)(B) to 

16 satisfy an award under a claim under this section. 

17 (2) PAYMENTS TO CLAIMANTS.—A claimant 

18 that files a claim under this subsection shall not be 

19 eligible to receive a distribution under section 

20 104(a). 

21 (d) EFFECT OF CLAIM.—The filing of a claim under 

22 this section shall be considered to be a waiver by the claim23 ant of any right to an award under section 104. 
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1 SEC. 108. ATTORNEYS’ FEES. 

2 (a) IN GENERAL.—The Special Master may use 

3 amounts described in section 103(c)(3) to make payments 

4 to claimants for costs and attorneys’ fees incurred under 

5 the Litigation before the date of enactment of this Act, 

6 or in connection with a claim under section 104, at a rate 

7 not to exceed $øll¿ per hour. 

8 (b) REQUIREMENTS.— 

9 (1) IN GENERAL.—The Special Master may 

10 make a payment under subsection (a) only if, as of 

11 the date on which the Special Master makes the pay12 ment, the applicable costs and attorneys’ fees have 

13 not been paid by the United States pursuant to a 

14 court order. 

15 (2) ACTION BY ATTORNEYS.—To receive a pay16 ment under subsection (a), an attorney of the claim17 ant shall submit to the Special Master a written 

18 claim for costs or fees under the Litigation. 

19 SEC. 109. WAIVER AND RELEASE OF CLAIMS. 

20 (a) IN GENERAL.—In order to receive an award 

21 under this title, a claimant shall execute and submit to 

22 the Special Master a waiver and release of claims under 

23 this section. 

24 (b) CONTENTS.—A waiver and release under sub25 section (a) shall contain a statement that the claimant 

26 waives and releases the United States (including any offi-
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1 cer, official, employee, or contractor of the United States) 

2 from any legal or equitable claim under Federal, State, 

3 or other law (including common law) relating to any ac4 counting of funds in the IIM account of the claimant on 

5 or before the date of enactment of this Act. 

6 SEC. 110. EFFECT OF TITLE. 

7 (a) SUBSTITUTION OF BENEFITS.— 

8 (1) IN GENERAL.—The benefits provided under 

9 this title shall be considered to be provided in lieu 

10 of any claims under Federal, State, or other law 

11 originating before the date of enactment of this Act 

12 for— 

13 (A) losses as a result of accounting errors 

14 relating to funds in an IIM account; 

15 (B) mismanagement of funds in an IIM 

16 account; or 

17 (C) interest accrued or owed in connection 

18 with funds in an IIM account. 

19 (2) LIMITATION OF CLAIMS.—Except as pro20 vided in this title, and notwithstanding any other 

21 provision of law, a claimant shall not maintain an 

22 action in any Federal, State, or other court for an 

23 accounting claim originating before the date of en24 actment of this Act. 

25 (3) JURISDICTION OF COURTS.— 
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1 (A) IN GENERAL.—Except as otherwise 

2 provided in this title, no court shall have juris3 diction over a claim filed by an individual or 

4 group for the historical accounting of funds in 

5 an IIM account on or before the date of enact6 ment of this Act, including any such claim that 

7 is pending on the date of enactment of this Act. 

8 (B) LIMITATION.—This paragraph does 

9 not prevent a court from ordering an account10 ing in connection with an action relating to the 

11 mismanagement of trust resources that are not 

12 funds in an IIM account on or before the date 

13 of enactment of this Act. 

14 (b) ACCEPTANCE AS WAIVER.—The acceptance by a 

15 claimant of a benefit under this title shall be considered 

16 to be a waiver by the claimant of any accounting claim 

17 that the claimant has or may have relating to the IIM 

18 account of the claimant. 

19 (c) RECEIPT OF PAYMENTS HAVE NO IMPACT ON

20 BENEFITS UNDER OTHER FEDERAL PROGRAMS.—The 

21 receipt of a payment by a claimant under this title shall 

22 not be— 

23 (1) subject to Federal or State income tax; or 

24 (2) treated as benefits or otherwise taken into 

25 account in determining the eligibility of the claimant 
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1 for, or the amount of benefits under, any other Fed2 eral program, including the social security program, 

3 the medicare program, the medicaid program, the 

4 State children’s health insurance program, the food 

5 stamp program, or the Temporary Assistance for 

6 Needy Families program. 

7 (d) CERTAIN CLAIMS.—Nothing in this title pre8 cludes any court from granting any legal or equitable relief 

9 in an action by an Indian tribe or Indian nation against 

10 the United States, or an officer of the United States, filed 

11 or pending on or before the date of enactment of this Act, 

12 seeking an accounting, money damages, or any other relief 

13 relating to a tribal trust account or trust asset or resource. 

14 TITLE II—INDIAN TRUST ASSET 

15 MANAGEMENT POLICY RE16 VIEW COMMISSION 

17 SEC. 201. ESTABLISHMENT. 

18 There is established a commission, to be known as 

19 the ‘‘Indian Trust Asset Management Policy Review Com20 mission,’’ (referred to in this title as the ‘‘Commission’’), 

21 for the purposes of— 

22 (1) reviewing trust asset management laws (in23 cluding regulations) in existence on the date of en24 actment of this Act governing the management and 
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1 administration of individual Indian and Indian tribal 

2 trust assets; 

3 (2) reviewing the management and administra4 tion practices of the Department of the Interior with 

5 respect to individual Indian and Indian tribal trust 

6 assets; and 

7 (3) making recommendations to the Secretary 

8 of the Interior and Congress for improving those 

9 laws and practices. 

10 SEC. 202. MEMBERSHIP. 

11 (a) IN GENERAL.—The Commission shall be com12 posed of 12 members, of whom— 

13 (1) 4 shall be appointed by the President; 

14 (2) 2 shall be appointed by the Majority Leader 

15 of the Senate; 

16 (3) 2 shall be appointed by the Minority Leader 

17 of the Senate; 

18 (4) 2 shall be appointed by the Speaker of the 

19 House of Representatives; and 

20 (5) 2 shall be appointed by the Minority Leader 

21 of the House of Representatives. 

22 (b) QUALIFICATIONS.—The membership of the Com23 mission shall include— 
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1 (1) at least 6 members who are representatives 

2 of federally recognized Indian tribes with reservation 

3 land or other trust land that is managed for— 

4 (A) grazing; 

5 (B) fishing; or 

6 (C) crop, timber, mineral, or other re7 source production purposes; 

8 (2) at least 1 member (including any member 

9 described in paragraph (1)) who is or has been the 

10 beneficial owner of an individual Indian monies ac11 count; and 

12 (3) at least 4 members who have experience 

13 in— 

14 (A) Indian trust resource (excluding a fi15 nancial resource) management; 

16 (B) fiduciary investment management; 

17 (C) financial asset management; and 

18 (D) Federal law and policy relating to In19 dians. 

20 (c) DATE OF APPOINTMENTS.— 

21 (1) IN GENERAL.—The appointment of a mem22 ber of the Commission shall be made not later than 

23 90 days after the date of enactment of this Act. 

24 (2) FAILURES TO APPOINT.—A failure to make 

25 an appointment in accordance with paragraph (1) 
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1 shall not affect the powers or duties of the Commis2 sion if sufficient members are appointed to establish 

3 a quorum. 

4 (d) TERM; VACANCIES.— 

5 (1) TERM.—A member shall be appointed for 

6 the life of the Commission. 

7 (2) VACANCIES.—A vacancy on the Commis8 sion— 

9 (A) shall not affect the powers or duties of 

10 the Commission; and 

11 (B) shall be filled in the same manner as 

12 the original appointment was made. 

13 SEC. 203. MEETINGS AND PROCEDURES. 

14 (a) INITIAL MEETING.—Not later than 150 days 

15 after the date of enactment of this Act, the Commission 

16 shall hold the initial meeting of the Commission to— 

17 (1) elect a Chairperson; and 

18 (2) establish procedures for the conduct of busi19 ness of the Commission, including public hearings. 

20 (b) SUBSEQUENT MEETINGS.—The Commission shall 

21 meet at the call of the Chairperson. 

22 (c) QUORUM.—7 members of the Commission shall 

23 constitute a quorum, but a lesser number of members may 

24 hold hearings. 
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1 (d) CHAIRPERSON.—The Commission shall elect a 

2 Chairperson from among the members of the Commission. 

3 SEC. 204. DUTIES. 

4 (a) REVIEWS AND ASSESSMENTS.—The Commission 

5 shall review and assess— 

6 (1) Federal laws (including regulations) appli7 cable or relating to the management and administra8 tion of Indian trust assets; and 

9 (2) the practices of the Department of the Inte10 rior relating to the management and administration 

11 of Indian trust assets. 

12 (b) CONSULTATION.—In conducting the reviews and 

13 assessments under subsection (a), the Commission shall 

14 consult with— 

15 (1) the Secretary of the Interior; 

16 (2) federally recognized Indian tribes; and 

17 (3) organizations that represent the interests of 

18 individual owners of Indian trust assets. 

19 (c) RECOMMENDATIONS.—After conducting the re20 views and assessments under subsection (a), the Commis21 sion shall develop recommendations with respect to— 

22 (1) changes to Federal law that would improve 

23 the management and administration of Indian trust 

24 assets by the Secretary of the Interior; 
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1 (2) changes to Indian trust asset management 

2 and administration practices that would— 

3 (A) better protect and conserve Indian 

4 trust assets; 

5 (B) improve the return on those assets to 

6 individual Indian and Indian tribal bene7 ficiaries; or 

8 (C) improve the level of security of indi9 vidual Indian and Indian tribal money account 

10 data and assets; and 

11 (3) proposed Indian trust asset management 

12 standards that are consistent with any Federal law 

13 that is otherwise applicable to the management and 

14 administration of the assets. 

15 (d) REPORT.—Not later than 2 years after the date 

16 on which the Commission holds the initial meeting, the 

17 Commission shall submit to the Committee on Indian Af18 fairs of the Senate, the Committee on Resources of the 

19 House of Representatives, and the Secretary of the Inte20 rior a report that includes— 

21 (1) an overview and the results of the reviews 

22 and assessments under subsection (a); and 

23 (2) any recommendations of the Commission 

24 under subsection (c). 
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1 SEC. 205. POWERS. 

2 (a) HEARINGS.—The Commission may hold such 

3 hearings, meet and act at such times and places, take such 

4 testimony, and receive such evidence as the Chairperson 

5 determines to be appropriate to carry out this title. 

6 (b) INFORMATION FROM FEDERAL AGENCIES.— 

7 (1) IN GENERAL.—The Commission may secure 

8 directly from a Federal agency such information as 

9 the Chairperson determines to be necessary to carry 

10 out this title. 

11 (2) PROVISION OF INFORMATION.—On request 

12 of the Chairperson, the head of a Federal agency 

13 shall provide information to the Commission. 

14 (c) ACCESS TO PERSONNEL.—For purposes of car15 rying out this title, the Commission shall have reasonable 

16 access to staff responsible for Indian trust asset manage17 ment and administration of— 

18 (1) the Department of the Interior; 

19 (2) the Department of the Treasury; and 

20 (3) the Department of Justice. 

21 (d) POSTAL SERVICES.—The Commission may use 

22 the United States mail in the same manner and under the 

23 same conditions as other Federal agencies. 

24 (e) GIFTS.—The Commission may accept, use, and 

25 dispose of gifts or donations of services or property to the 
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1 same extent and under the same conditions as other Fed2 eral agencies. 

3 SEC. 206. COMMISSION PERSONNEL MATTERS. 

4 (a) COMPENSATION OF MEMBERS.— 

5 (1) NON-FEDERAL EMPLOYEES.—A member of 

6 the Commission who is not an officer or employee of 

7 the Federal Government shall be compensated at a 

8 rate equal to the daily equivalent of the annual rate 

9 of basic pay prescribed for level IV of the Executive 

10 Schedule under section 5315 of title 5, United 

11 States Code, for each day (including travel time) 

12 during which the member is engaged in the perform13 ance of the duties of the Commission. 

14 (2) FEDERAL EMPLOYEES.—A member of the 

15 Commission who is an officer or employee of the 

16 Federal Government shall serve without compensa17 tion in addition to the compensation received for the 

18 services of the member as an officer or employee of 

19 the Federal Government. 

20 (b) TRAVEL EXPENSES.—A member of the Commis21 sion shall be allowed travel expenses, including per diem 

22 in lieu of subsistence, at rates authorized for an employee 

23 of an agency under subchapter I of chapter 57 of title 

24 5, United States Code, while away from home or regular 
27 

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1 place of business of the member in the performance of the 

2 duties of the Commission. 

3 (c) STAFF.— 

4 (1) IN GENERAL.—The Chairperson may, with5 out regard to the civil services laws (including regu6 lations), appoint and terminate an executive director 

7 and such other additional personnel as are necessary 

8 to enable the Commission to perform the duties of 

9 the Commission. 

10 (2) CONFIRMATION OF EXECUTIVE DIREC11 TOR.—The employment of an executive director shall 

12 be subject to confirmation by the Commission. 

13 (3) COMPENSATION.— 

14 (A) IN GENERAL.—Except as provided in 

15 subparagraph (B), the Chairperson may fix the 

16 compensation of the executive director and 

17 other personnel without regard to the provisions 

18 of chapter 51 and subchapter III of title 5, 

19 United States Code, relating to classification of 

20 positions and General Schedule pay rates. 

21 (B) MAXIMUM RATE OF PAY.—The rate of 

22 pay for the executive director and other per23 sonnel shall not exceed the rate payable for 

24 level V of the Executive Schedule under section 

25 5316 of title 5, United States Code. 
28 

•S 1439 IS

1 SEC. 207. EXEMPTION FROM FACA. 

2 The Federal Advisory Committee Act (5 U.S.C. App.) 

3 shall not apply to the Commission if all hearings of the 

4 Commission are held open to the public. 

5 SEC. 208. AUTHORIZATION OF APPROPRIATIONS. 

6 There are authorized to be appropriated such sums 

7 as are necessary to carry out this title. 

8 SEC. 209. TERMINATION OF COMMISSION. 

9 The Commission and the authority of the Commis10 sion under this title shall terminate on the date that is 

11 3 years after the date on which the Commission holds the 

12 initial meeting of the Commission. 

13 TITLE III—INDIAN TRUST ASSET 

14 MANAGEMENT DEMONSTRA15 TION PROJECT ACT 

16 SEC. 301. SHORT TITLE. 

17 This title may be cited as the ‘‘Indian Trust Asset 

18 Management Demonstration Project Act of 2005’’. 

19 SEC. 302. DEFINITIONS. 

20 In this title: 

21 (1) PROJECT.—The term ‘‘Project’’ means the 

22 Indian trust asset management demonstration 

23 project established under section 303(a). 

24 (2) OTHER INDIAN TRIBE.—The term ‘‘other 

25 Indian tribe’’ means an Indian tribe that— 

26 (A) is federally recognized; 
29 

•S 1439 IS

1 (B) is not a section 131 Indian tribe; and 

2 (C) submits an application under section 

3 303(c). 

4 (3) SECRETARY.—The term ‘‘Secretary’’ means 

5 the Secretary of the Interior. 

6 (4) SECTION 131 INDIAN TRIBE.—The term 

7 ‘‘section 131 Indian tribe’’ means any Indian tribe 

8 that is participating in the demonstration project 

9 under section 131 of title III, division E of the Con10 solidated Appropriations Act, 2005 (Public Law 

11 108–447; 118 Stat. 2809). 

12 SEC. 303. ESTABLISHMENT OF DEMONSTRATION PROJECT; 

13 SELECTION OF PARTICIPATING INDIAN 

14 TRIBES. 

15 (a) IN GENERAL.—The Secretary shall establish and 

16 carry out an Indian trust asset management demonstra17 tion project, in accordance with this title. 

18 (b) SELECTION OF PARTICIPATING INDIAN

19 TRIBES.— 

20 (1) SECTION 131 INDIAN TRIBES.—A section 

21 131 Indian tribe shall be eligible to participate in 

22 the Project if the section 131 Indian tribe submits 

23 to the Secretary an application under subsection (c). 

24 (2) OTHER TRIBES.— 
30 

•S 1439 IS

1 (A) IN GENERAL.—Any other Indian tribe 

2 shall be eligible to participate in the Project 

3 if— 

4 (i) the other Indian tribe submits to 

5 the Secretary an application under sub6 section (c); and 

7 (ii) the Secretary approves the appli8 cation of the other Indian tribe. 

9 (B) LIMITATION.— 

10 (i) 30 OR FEWER APPLICANTS.—If 30 

11 or fewer other Indian tribes submit appli12 cations under subsection (c), each of the 

13 other Indian tribes shall be eligible to par14 ticipate in the Project. 

15 (ii) MORE THAN 30 APPLICANTS.— 

16 (I) IN GENERAL.—If more than 

17 30 other Indian tribes submit applica18 tions under subsection (c), the Sec19 retary shall select 30 other Indian 

20 tribes to participate in the Project. 

21 (II) PREFERENCE.—In selecting 

22 other Indian tribes under subclause 

23 (I), the Secretary shall give preference 

24 to other Indian tribes the applications 
31 

•S 1439 IS

1 of which were first received by the 

2 Secretary. 

3 (3) NOTICE.— 

4 (A) IN GENERAL.—The Secretary shall 

5 provide a written notice to each Indian tribe se6 lected to participate in the Project. 

7 (B) CONTENTS.—A notice under subpara8 graph (A) shall include— 

9 (i) a statement that the application of 

10 the Indian tribe has been approved by the 

11 Secretary; and 

12 (ii) a requirement that the Indian 

13 tribe shall submit to the Secretary a pro14 posed Indian trust asset management plan 

15 in accordance with section 304. 

16 (c) APPLICATION.— 

17 (1) IN GENERAL.—To be eligible to participate 

18 in the Project, an Indian tribe shall submit to the 

19 Secretary a written application in accordance with 

20 paragraph (2). 

21 (2) REQUIREMENTS.—The Secretary shall take 

22 into consideration an application under this sub23 section only if the application— 

24 (A) includes a copy of a resolution or other 

25 appropriate action by the governing body of the 
32 

•S 1439 IS

1 Indian tribe, as determined by the Secretary, in 

2 support of or authorizing the application; 

3 (B) is received by the Secretary by the 

4 date that is 180 days after the date of enact5 ment of this Act; and 

6 (C) states that the Indian tribe is request7 ing to participate in the Project. 

8 (d) DURATION.—The Project shall remain in effect 

9 for a period of 8 years after the date of enactment of this 

10 Act. 

11 SEC. 304. INDIAN TRUST ASSET MANAGEMENT PLAN. 

12 (a) PROPOSED PLAN.— 

13 (1) SUBMISSION.— 

14 (A) IN GENERAL.—Not later than 120 

15 days after the date on which an Indian tribe re16 ceives a notice from the Secretary under section 

17 303(b)(3), the Indian tribe shall submit to the 

18 Secretary a proposed Indian trust asset man19 agement plan in accordance with paragraph (2). 

20 (B) TIME LIMITATIONS.— 

21 (i) IN GENERAL.—Except as provided 

22 in clause (ii), any Indian tribe that fails to 

23 submit the Indian trust asset management 

24 plan of the Indian tribe by the date speci-
33 

•S 1439 IS

1 fied in subparagraph (A) shall no longer be 

2 eligible to participate in the Project. 

3 (ii) EXTENSION.—The Secretary shall 

4 grant an extension of not more than 60 

5 days to an Indian tribe if the Indian tribe 

6 submits a written request for such an ex7 tension before the date described in sub8 paragraph (A). 

9 (2) CONTENTS.—A proposed Indian trust asset 

10 management plan shall include provisions that— 

11 (A) identify the trust assets that will be 

12 subject to the plan, including financial and non13 financial trust assets; 

14 (B) establish trust asset management ob15 jectives and priorities for Indian trust assets 

16 that are located within the reservation, or oth17 erwise subject to the jurisdiction, of the Indian 

18 tribe; 

19 (C) allocate trust asset management fund20 ing that is available for the Indian trust assets 

21 subject to the plan in order to meet the trust 

22 asset management objectives and priorities; 

23 (D) if the Indian tribe has contracted or 

24 compacted functions or activities under the In25 dian Self-Determination and Education Assist-
34 

•S 1439 IS

1 ance Act (25 U.S.C. 450 et seq.) relating to the 

2 management of trust assets— 

3 (i) identify the functions or activities 

4 that are being performed by the Indian 

5 tribe under the contracts or compacts; and 

6 (ii) describe the proposed manage7 ment systems, practices, and procedures 

8 that the Indian tribe will follow; and 

9 (E) establish procedures for nonbinding 

10 mediation or resolution of any dispute between 

11 the Indian tribe and the United States relating 

12 to the trust asset management plan. 

13 (3) AUTHORITY OF INDIAN TRIBES TO DE14 VELOP SYSTEMS, PRACTICES, AND PROCEDURES.— 

15 For purposes of preparing and carrying out a man16 agement plan under this section, an Indian tribe 

17 that has compacted or contracted activities or func18 tions under the Indian Self-Determination and Edu19 cation Assistance Act (25 U.S.C. 450 et seq.), for 

20 purposes of carrying out the activities or functions, 

21 may develop and carry out trust asset management 

22 systems, practices, and procedures that differ from 

23 any such systems, practices, and procedures used by 

24 the Secretary in managing the trust assets if the 

25 systems, practices, and procedures of the Indian 
35 

•S 1439 IS

1 tribe meet the requirements of the laws, standards, 

2 and responsibilities described in subsection (c). 

3 (4) TECHNICAL ASSISTANCE AND INFORMA4 TION.—The Secretary shall provide to an Indian 

5 tribe any technical assistance and information, in6 cluding budgetary information, that the Indian tribe 

7 determines to be necessary for preparation of a pro8 posed plan on receipt of a written request from the 

9 Indian tribe. 

10 (b) APPROVAL AND DISAPPROVAL OF PROPOSED

11 PLANS.— 

12 (1) APPROVAL.— 

13 (A) IN GENERAL.—Not later than 120 

14 days after the date on which an Indian tribe 

15 submits a proposed Indian trust asset manage16 ment plan under subsection (a), Secretary shall 

17 approve or disapprove the proposed plan. 

18 (B) REQUIREMENTS FOR DISAPPROVAL.— 

19 The Secretary shall approve a proposed plan 

20 unless the Secretary determines that— 

21 (i) the proposed plan fails to address 

22 a requirement under subsection (a)(2); 

23 (ii) the proposed plan includes 1 or 

24 more provisions that are inconsistent with 

25 subsection (c); or 
36 

•S 1439 IS

1 (iii) the cost of implementing the pro2 posed plan exceeds the amount of funding 

3 available for the management of trust as4 sets that would be subject to the proposed 

5 plan. 

6 (2) ACTION ON DISAPPROVAL.— 

7 (A) NOTICE.—If the Secretary disapproves 

8 a proposed plan under paragraph (1)(B), the 

9 Secretary shall provide to the Indian tribe a 

10 written notice of the disapproval, including any 

11 reason why the proposed plan was disapproved. 

12 (B) ACTION BY TRIBES.—An Indian tribe 

13 the proposed plan of which is disapproved 

14 under paragraph (1)(B) may resubmit an 

15 amended proposed plan not later than 90 days 

16 after the date on which the Indian tribe receives 

17 the notice under subparagraph (A). 

18 (3) FAILURE TO APPROVE OR DISAPPROVE.—If 

19 the Secretary fails to approve or disapprove a pro20 posed plan in accordance with paragraph (1), the 

21 plan shall be considered to be disapproved under 

22 clauses (i) and (ii) of paragraph (1)(B). 

23 (4) JUDICIAL REVIEW.—An Indian tribe may 

24 seek judicial review of the determination of the Sec25 retary in accordance with subchapter II of chapter 
37 

•S 1439 IS

1 5, and chapter 7, of title 5, United States Code 

2 (commonly known as the ‘‘Administrative Procedure 

3 Act’’) if— 

4 (A) the Secretary disapproves the proposed 

5 plan of the Indian tribe under paragraph (1) or 

6 (3); and 

7 (B) the Indian tribe has exhausted any 

8 other administrative remedy available to the In9 dian tribe. 

10 (c) APPLICABLE LAWS; STANDARDS; TRUST RE11 SPONSIBILITY.— 

12 (1) APPLICABLE LAWS.—An Indian trust asset 

13 management plan, and any activity carried out 

14 under the plan, shall not be approved unless the pro15 posed plan is consistent with— 

16 (A) all Federal treaties, statutes, regula17 tions, Executive orders, and court decisions that 

18 are applicable to the trust assets, or the man19 agement of the trust assets, identified in the 

20 plan; and 

21 (B) all tribal laws that are applicable to 

22 the trust assets, or the management of trust as23 sets, identified in the plan, except to the extent 

24 that the laws are inconsistent with the treaties, 
38 

•S 1439 IS

1 statutes, regulations, Executive orders, and 

2 court decisions referred to in subparagraph (A). 

3 (2) STANDARDS.—Subject to the laws referred 

4 to in paragraph (1)(A), an Indian trust asset man5 agement plan shall not be approved unless the Sec6 retary determines that the plan will— 

7 (A) protect trust assets from loss, waste, 

8 and unlawful alienation; 

9 (B) promote the interests of the beneficial 

10 owner of the trust asset; 

11 (C) conform, to the maximum extent prac12 ticable, to the preferred use of the trust asset 

13 by the beneficial owner, unless the use is incon14 sistent with a treaty, statute, regulation, Execu15 tive order, or court decision referred to in para16 graph (1)(A); 

17 (D) protect any applicable treaty-based 

18 fishing, hunting and gathering, and similar 

19 rights relating to the use, access, or enjoyment 

20 of a trust asset; and 

21 (E) require that any activity carried out 

22 under the plan be carried out in good faith and 

23 with loyalty to the beneficial owner of the trust 

24 asset. 
39 

•S 1439 IS

1 (3) TRUST RESPONSIBILITY.—An Indian trust 

2 asset management plan shall not be approved unless 

3 the Secretary determines that the plan is consistent 

4 with the trust responsibility of the United States to 

5 the Indian tribe and individual Indians. 

6 (d) TERMINATION OF PLAN.— 

7 (1) IN GENERAL.—An Indian tribe may termi8 nate an Indian trust asset management plan on any 

9 date after the date on which a proposed Indian trust 

10 asset management plan is approved by providing to 

11 the Secretary— 

12 (A) a notice of the intent of the Indian 

13 tribe to terminate the plan; and 

14 (B) a resolution of the governing body of 

15 the Indian tribe authorizing the termination of 

16 the plan. 

17 (2) EFFECTIVE DATE.—A termination of an In18 dian trust asset management plan under paragraph 

19 (1) takes effect on October 1 of the first fiscal year 

20 following the date on which a notice is provided to 

21 the Secretary under paragraph (1)(A). 

22 SEC. 305. EFFECT OF TITLE. 

23 (a) LIABILITY.—Nothing in this title, or a trust asset 

24 management plan approved under section 304, shall inde25 pendently diminish, increase, create, or otherwise affect 
40 

•S 1439 IS

1 the liability of the United States or an Indian tribe partici2 pating in the Project for any loss resulting from the man3 agement of an Indian trust asset under an Indian trust 

4 asset management plan. 

5 (b) EFFECT ON OTHER LAWS.—Nothing in this title 

6 amends or otherwise affects the application of any treaty, 

7 statute, regulation, Executive order, or court decision that 

8 is applicable to Indian trust assets or the management or 

9 administration of Indian trust assets, including the Indian 

10 Self-Determination and Education Assistance Act (25 

11 U.S.C. 450 et seq.). 

12 (c) TRUST RESPONSIBILITY.—Nothing in this title 

13 diminishes or otherwise affects the trust responsibility of 

14 the United States to Indian tribes and individual Indians. 

15 TITLE IV—FRACTIONAL INTER16 EST PURCHASE AND CON17 SOLIDATION PROGRAM 

18 SEC. 401. FRACTIONAL INTEREST PROGRAM. 

19 Section 213 of the Indian Land Consolidation Act 

20 (25 U.S.C. 2212) is amended— 

21 (1) by redesignating subsection (d) as sub22 section (h); and 

23 (2) by inserting after subsection (c) the fol24 lowing: 
41 

•S 1439 IS

1 ‘‘(d) PURCHASE OF INTERESTS IN FRACTIONATED

2 INDIAN LAND.— 

3 ‘‘(1) INCENTIVES.—In acquiring an interest 

4 under this section in any parcel of land that includes 

5 undivided trust or restricted interests owned by not 

6 less than 20 separate individuals, as determined by 

7 the Secretary, the Secretary may include in the of8 fered purchase price for the interest, in addition to 

9 fair market value, an amount not less than $100 

10 and not to exceed $350, as an incentive for the 

11 owner to sell the interest to the Secretary. 

12 ‘‘(2) SALE OF ALL TRUST OR RESTRICTED IN13 TERESTS.—If an individual agrees to sell to the Sec14 retary all trust or restricted interests owned by the 

15 individual, the Secretary may include in the offered 

16 purchase price, in addition to fair market value and 

17 the incentive described in paragraph (1), an amount 

18 not to exceed $2,000, as the Secretary determines to 

19 be appropriate, taking into consideration the avoided 

20 costs to the United States of probating the estate of 

21 the individual or an heir of the individual. 

22 ‘‘(e) CERTAIN PARCELS OF HIGHLY FRACTIONATED

23 INDIAN LAND.— 

24 ‘‘(1) DEFINITION OF OFFEREE.—In this sub25 section, the term ‘offeree’ does not include the In-
42 

•S 1439 IS

1 dian tribe that has jurisdiction over a parcel of land 

2 for which an offer is made. 

3 ‘‘(2) OFFER TO PURCHASE.— 

4 ‘‘(A) IN GENERAL.—If the Secretary deter5 mines that a tract of land consists of not less 

6 than 200 separate undivided trust or restricted 

7 interests, the Secretary may offer to purchase 

8 the interests in the tract, in accordance with 

9 this subsection, for an amount equal to the sum 

10 of— 

11 ‘‘(i) the fair market value of the inter12 ests; and 

13 ‘‘(ii) an additional amount, to be de14 termined by the Secretary, not less than 

15 triple the fair market value of the interest. 

16 ‘‘(B) REQUIREMENT.—The Secretary shall 

17 make an offer under subparagraph (A) not 

18 later than 3 days before the date on which the 

19 Secretary mails a notice of the offer to the 

20 offeree under paragraph (3). 

21 ‘‘(3) NOTICE OF OFFER.— 

22 ‘‘(A) IN GENERAL.—The Secretary shall 

23 provide to an offeree, by certified mail to the 

24 last known address of the offeree, a notice of 
43 

•S 1439 IS

1 any offer to purchase land under this sub2 section. 

3 ‘‘(B) INCLUSIONS.—A notice under sub4 paragraph (A) shall include in plain language, 

5 as determined by the Secretary— 

6 ‘‘(i) the date on which the offer was 

7 made; 

8 ‘‘(ii) the name of the offeree; 

9 ‘‘(iii) the location of the tract of land 

10 containing the interest that is the subject 

11 of the offer; 

12 ‘‘(iv) the size of the interest of the 

13 offeree, expressed in terms of a fraction or 

14 a percentage of the tract of land described 

15 in clause (iii); 

16 ‘‘(v) the fair market value of the tract 

17 of land described in clause (iii); 

18 ‘‘(vi) the fair market value of the in19 terest of the offeree; 

20 ‘‘(vii) the amount offered for the in21 terest in addition to fair market value 

22 under paragraph (2)(A)(ii); 

23 ‘‘(viii) a statement that the offeree 

24 shall be considered to have accepted the 

25 offer for the amount stated in the notice 
44 

•S 1439 IS

1 unless a notice of rejection form is depos2 ited in the United States mail not later 

3 than 90 days after the date on which the 

4 offer is received; and 

5 ‘‘(ix) a self-addressed, postage pre6 paid notice of rejection form. 

7 ‘‘(4) TREATMENT OF OFFER.— 

8 ‘‘(A) IN GENERAL.—An offer made under 

9 this subsection shall be considered to be accept10 ed by the offeree if— 

11 ‘‘(i) the certified mail receipt for the 

12 offer is signed by the offeree; and 

13 ‘‘(ii) the notice of rejection form de14 scribed in paragraph (3)(B)(ix) is not de15 posited in the United States mail by the 

16 date that is 90 days after the date on 

17 which the offer is received. 

18 ‘‘(B) REJECTION.—An offer made under 

19 this subsection shall be considered to be re20 jected by the offeree if— 

21 ‘‘(i) the notice of rejection form de22 scribed in paragraph (3)(B)(ix) is depos23 ited in the United States mail by the date 

24 that is 90 days after the date on which the 

25 offer is received; or 
45 

•S 1439 IS

1 ‘‘(ii) the certified mail receipt for the 

2 offer is returned to the Secretary unsigned 

3 by the offeree. 

4 ‘‘(5) WITHDRAWAL OF ACCEPTANCE; NOTICE.— 

5 ‘‘(A) WITHDRAWAL OF ACCEPTANCE.—A 

6 person that is considered to have accepted an 

7 offer under paragraph (4)(A) may withdraw the 

8 acceptance by depositing in the United States 

9 mail a notice of withdrawal of acceptance form 

10 by the date that is 30 days after the date of re11 ceipt of the notice under subparagraph (B). 

12 ‘‘(B) NOTICE.—The Secretary shall pro13 vide to any person that is considered to have 

14 accepted an offer under paragraph (4)(A), by 

15 certified mail, restricted delivery, to the last 

16 known address of the person, a preaddressed, 

17 postage prepaid withdrawal of acceptance form 

18 and a notice stating that— 

19 ‘‘(i) the offer made to the person is 

20 considered to be accepted; and 

21 ‘‘(ii) the person has the right to with22 draw the acceptance by depositing in the 

23 United States mail the notice of with24 drawal of acceptance form by the date that 
46 

•S 1439 IS

1 is 30 days after the date on which the no2 tice was delivered to the person. 

3 ‘‘(6) NOTICE OF ACCEPTANCE AND RIGHT TO

4 APPEAL.—The Secretary shall provide to any person 

5 that has been served with a notice under paragraph 

6 (5)(B) and fails to withdraw the acceptance of the 

7 offer in accordance with paragraph (5)(A), by first 

8 class mail to the last known address of the person, 

9 a notice stating that— 

10 ‘‘(A) the offer made to the person is con11 sidered to be accepted and not timely with12 drawn; and 

13 ‘‘(B) after exhausting all administrative 

14 remedies, the person may appeal any deter15 mination of the Secretary in accordance with 

16 paragraph (7). 

17 ‘‘(7) JUDICIAL REVIEW.—A person described in 

18 paragraph (6) may appeal any determination of the 

19 Secretary with respect to— 

20 ‘‘(A) the number of owners of undivided 

21 interests in a tract of land required under para22 graph (2); 

23 ‘‘(B) the fair market value of a tract of 

24 land or interest in land; 
47 

•S 1439 IS

1 ‘‘(C) the date on which a notice of rejec2 tion form was deposited in the United States 

3 mail under paragraph (4)(B)(i); or 

4 ‘‘(D) the date on which a notice of with5 drawal of acceptance form was deposited in the 

6 United States mail under paragraph (5)(A). 

7 ‘‘(f) OFFER TO SETTLE CLAIMS AGAINST THE

8 UNITED STATES.— 

9 ‘‘(1) IN GENERAL.—The Secretary may make 

10 an offer to any individual owner (not including an 

11 Indian tribe) of a trust or restricted interest in a 

12 tract of land to settle any claim that the owner may 

13 have against the United States relating to the spe14 cific tract of land of which the interest is a part (not 

15 including a claim for an accounting described in title 

16 I of the Indian Trust Reform Act of 2005). 

17 ‘‘(2) REQUIREMENTS.—An offer to settle claims 

18 under this subsection shall— 

19 ‘‘(A) be in writing; 

20 ‘‘(B) be delivered to an individual owner by 

21 the Secretary in person or through first class 

22 mail; and 

23 ‘‘(C) include— 

24 ‘‘(i) the name of the individual owner; 
48 

•S 1439 IS

1 ‘‘(ii) a description of the tract of land 

2 to which the offer relates; 

3 ‘‘(iii) the amount offered to settle a 

4 claim of the individual owner; 

5 ‘‘(iv) the manner and date by which 

6 the individual owner shall accept the offer; 

7 ‘‘(v) a statement that the individual 

8 owner is under no obligation to accept the 

9 offer; 

10 ‘‘(vi) a statement that the individual 

11 owner has the right to consult an attorney 

12 or other advisor before accepting the offer; 

13 ‘‘(vii) a statement that acceptance of 

14 the offer by the individual owner will result 

15 in a full and final settlement of all claims, 

16 known and unknown, of the individual 

17 owner (including the heirs and assigns of 

18 the individual owner) against the United 

19 States relating to the tract of land identi20 fied in the offer; and 

21 ‘‘(viii) a statement that the settlement 

22 proposed by the offer does not cover any 

23 claim for an accounting described in title I 

24 of the Indian Trust Reform Act of 2005. 
49 

•S 1439 IS

1 ‘‘(3) ACCEPTANCE.—No acceptance of an offer 

2 under this subsection shall be valid or binding on the 

3 individual owner unless the acceptance— 

4 ‘‘(A) is in writing; 

5 ‘‘(B) is signed by the individual owner; 

6 ‘‘(C) is notarized; and 

7 ‘‘(D) is attached to a copy of, or contains 

8 all material terms of, the offer to which the ac9 ceptance corresponds. 

10 ‘‘(4) LIMITATION.—No offer to purchase an in11 terest under this section or any other provision of 

12 law shall be conditioned on the acceptance of an 

13 offer to settle a claim under this subsection. 

14 ‘‘(5) OTHER LAWS.—The authority of the Sec15 retary to settle claims under this subsection shall be 

16 in addition to, and not in lieu of, the authority of 

17 the Secretary to settle claims under any other provi18 sion of Federal law. 

19 ‘‘(g) BORROWING FROM TREASURY.— 

20 ‘‘(1) ISSUANCE OF OBLIGATIONS.— 

21 ‘‘(A) IN GENERAL.—To the extent ap22 proved in annual appropriations Acts, the Sec23 retary may issue to the Secretary of the Treas24 ury obligations in such amounts as the Sec25 retary determines to be necessary to acquire in-
50 

•S 1439 IS

1 terests under this Act, subject to approval of 

2 the Secretary of the Treasury, and bearing in3 terest at a rate to be determined by the Sec4 retary of the Treasury, taking into consider5 ation current market yields on outstanding 

6 marketable obligations of the United States of 

7 comparable maturities to the obligations. 

8 ‘‘(B) LIMITATION.—The aggregate amount 

9 of obligations under subparagraph (A) out10 standing at any time shall not exceed 

11 $øllllll¿. 

12 ‘‘(2) FORMS AND DENOMINATIONS.—The obli13 gations issued under paragraph (1) shall be in such 

14 forms and denominations, and subject to such other 

15 terms and conditions, as the Secretary of the Treas16 ury may prescribe. 

17 ‘‘(3) REPAYMENT.— 

18 ‘‘(A) IN GENERAL.—Revenues derived 

19 from land restored to the Tribe under this Act 

20 shall be used by the Secretary to pay the prin21 cipal and interest on the obligations issued 

22 under paragraph (1). 

23 ‘‘(B) ASSURANCE OF REPAYMENT.—The 

24 Secretary shall ensure, to the maximum extent 

25 possible, that the revenues described in sub-
51 

•S 1439 IS

1 paragraph (A) provide reasonable assurance of 

2 repayment of the obligations issued under para3 graph (1). 

4 ‘‘(4) AUTHORIZATION OF APPROPRIATIONS.— 

5 There are authorized to be appropriated to the Sec6 retary for each fiscal year beginning after the date 

7 of enactment of this subsection such sums as are 

8 necessary to cover any difference between— 

9 ‘‘(A) the total amount of repayments of 

10 principal and interest on obligations issued to 

11 the Secretary of the Treasury under paragraph 

12 (1) during the previous fiscal year; and 

13 ‘‘(B) the total amount of repayments de14 scribed in subparagraph (A) that were contrac15 tually required to be made to the Secretary of 

16 the Treasury during that fiscal year. 

17 ‘‘(h) RECEIPT OF PAYMENTS HAVE NO IMPACT ON

18 BENEFITS UNDER OTHER FEDERAL PROGRAMS.—The 

19 receipt of a payment by an offeree under this title shall 

20 not be— 

21 ‘‘(1) subject to Federal or State income tax; or 

22 ‘‘(2) treated as benefits or otherwise taken into 

23 account in determining the eligibility of the offeree 

24 for, or the amount of benefits under, any other Fed25 eral program, including the social security program, 
52 

•S 1439 IS

1 the medicare program, the medicaid program, the 

2 State children’s health insurance program, the food 

3 stamp program, or the Temporary Assistance for 

4 Needy Families program.’’. 

5 TITLE V—RESTRUCTURING BU6 REAU OF INDIAN AFFAIRS 

7 AND OFFICE OF SPECIAL 

8 TRUSTEE 

9 SEC. 501. PURPOSE. 

10 The purpose of this title is to ensure a more effective 

11 and accountable administration of duties of the Secretary 

12 of the Interior with respect to providing services and pro13 grams to Indians and Indian tribes, including the manage14 ment of Indian trust resources. 

15 SEC. 502. DEFINITIONS. 

16 In this title: 

17 (1) BUREAU.—The term ‘‘Bureau’’ means the 

18 Bureau of Indian Affairs. 

19 (2) OFFICE.—The term ‘‘Office’’ means the Of20 fice of Trust Reform Implementation and Oversight 

21 referred to in section 503(c). 

22 (3) SECRETARY.—The term ‘‘Secretary’’ means 

23 the Secretary of the Interior. 

24 (4) UNDER SECRETARY.—The term ‘‘Under 

25 Secretary’’ means the individual appointed to the po-
53 

•S 1439 IS

1 sition of Under Secretary for Indian Affairs, estab2 lished by section 503(a). 

3 SEC. 503. UNDER SECRETARY FOR INDIAN AFFAIRS. 

4 (a) ESTABLISHMENT OF POSITION.—There is estab5 lished in the Department of the Interior the position of 

6 Under Secretary for Indian Affairs, who shall report di7 rectly to the Secretary. 

8 (b) APPOINTMENT.— 

9 (1) IN GENERAL.—Except as provided in para10 graph (2), the Under Secretary shall be appointed 

11 by the President, by and with the advice and consent 

12 of the Senate. 

13 (2) EXCEPTION.—The officer serving as the As14 sistant Secretary for Indian Affairs on the date of 

15 enactment of this Act may assume the position of 

16 Under Secretary without appointment under para17 graph (1) if— 

18 (A) the officer was appointed as Assistant 

19 Secretary for Indian Affairs by the President by 

20 and with the advice and consent of the Senate; 

21 and 

22 (B) not later than 180 days after the date 

23 of enactment of this Act, the Secretary ap24 proves the assumption. 
54 

•S 1439 IS

1 (c) DUTIES.—In addition to the duties transferred to 

2 the Under Secretary under sections 504 and 505, the 

3 Under Secretary, acting through an Office of Trust Re4 form Implementation and Oversight, shall— 

5 (1) carry out any activity relating to trust fund 

6 accounts and trust resource management of the Bu7 reau (except any activity carried out under the Of8 fice of the Special Trustee for American Indians be9 fore the date on which the Office of the Special 

10 Trustee is abolished), in accordance with the Amer11 ican Indian Trust Fund Management Reform Act of 

12 1994 (25 U.S.C. 4001 et seq.); 

13 (2) develop and maintain an inventory of Indian 

14 trust assets and resources; 

15 (3) coordinate with the Special Trustee for 

16 American Indians to ensure an orderly transition of 

17 the functions of the Special Trustee under section 

18 505; 

19 (4) supervise any activity carried out by the De20 partment of the Interior, including— 

21 (A) to the extent that the activities relate 

22 to Indian affairs, activities carried out by— 

23 (i) the Commissioner of Reclamation; 

24 (ii) the Director of the Bureau of 

25 Land Management; and 
55 

•S 1439 IS

1 (iii) the Director of the Minerals Man2 agement Service; and 

3 (B) intergovernmental relations between 

4 the Bureau and Indian tribal governments; 

5 (5) to the maximum extent practicable, coordi6 nate activities and policies of the Bureau with activi7 ties and policies of— 

8 (A) the Bureau of Reclamation; 

9 (B) the Bureau of Land Management; and 

10 (C) the Minerals Management Service; 

11 (6) provide for regular consultation with Indi12 ans and Indian tribes that own interests in trust re13 sources and trust fund accounts; 

14 (7) manage and administer Indian trust re15 sources in accordance with any applicable Federal 

16 law; 

17 (8) take steps to protect the security of data re18 lating to individual Indian and Indian tribal trust 

19 accounts; and 

20 (9) take any other measure the Under Sec21 retary determines to be necessary with respect to In22 dian affairs. 
56 

•S 1439 IS

1 SEC. 504. TRANSFER OF FUNCTIONS OF ASSISTANT SEC2 RETARY FOR INDIAN AFFAIRS. 

3 (a) TRANSFER OF FUNCTIONS.—There is transferred 

4 to the Under Secretary any function of the Assistant Sec5 retary for Indian Affairs that has not been carried out 

6 by the Assistant Secretary as of the date of enactment 

7 of this Act. 

8 (b) DETERMINATIONS OF CERTAIN FUNCTIONS BY

9 THE OFFICE OF MANAGEMENT AND BUDGET.—If nec10 essary, the Office of Management and Budget shall make 

11 any determination relating to the functions transferred 

12 under subsection (a). 

13 (c) PERSONNEL PROVISIONS.— 

14 (1) APPOINTMENTS.—The Under Secretary 

15 may appoint and fix the compensation of such offi16 cers and employees as the Under Secretary deter17 mines to be necessary to carry out any function 

18 transferred under this section. 

19 (2) REQUIREMENTS.—Except as otherwise pro20 vided by law— 

21 (A) an officer or employee described in 

22 paragraph (1) shall be appointed in accordance 

23 with the civil service laws; and 

24 (B) the compensation of the officer or em25 ployee shall be fixed in accordance with title 5, 

26 United States Code. 
57 

•S 1439 IS

1 (d) DELEGATION AND ASSIGNMENT.— 

2 (1) IN GENERAL.—Except as otherwise ex3 pressly prohibited by law or otherwise provided by 

4 this section, the Under Secretary may— 

5 (A) delegate any of the functions trans6 ferred to the Under Secretary by this section 

7 and any function transferred or granted to the 

8 Under Secretary after the date of enactment of 

9 this Act to such officers and employees of the 

10 Office as the Under Secretary may designate; 

11 and 

12 (B) authorize successive redelegations of 

13 such functions as the Under Secretary deter14 mines to be necessary or appropriate. 

15 (2) DELEGATION.—No delegation of functions 

16 by the Under Secretary under this section shall re17 lieve the Under Secretary of responsibility for the 

18 administration of the functions. 

19 (e) REORGANIZATION.—The Under Secretary may al20 locate or reallocate any function transferred under this 

21 section among the officers of the Office, and establish, 

22 consolidate, alter, or discontinue such organizational enti23 ties in the Office, as the Under Secretary determines to 

24 be necessary or appropriate. 
58 

•S 1439 IS

1 (f) RULES.—The Under Secretary may prescribe, in 

2 accordance with the provisions of chapters 5 and 6 of title 

3 5, United States Code, such rules and regulations as the 

4 Under Secretary determines to be necessary or appro5 priate to administer and manage the functions of the Of6 fice. 

7 (g) TRANSFER AND ALLOCATIONS OF APPROPRIA8 TIONS AND PERSONNEL.— 

9 (1) IN GENERAL.—Except as otherwise pro10 vided in this section, the personnel employed in con11 nection with, and the assets, liabilities, contracts, 

12 property, records, and unexpended balances of ap13 propriations, authorizations, allocations, and other 

14 funds employed, used, held, arising from, available 

15 to, or to be made available in connection with, the 

16 functions transferred by this section, subject to sec17 tion 1531 of title 31, United States Code, shall be 

18 transferred to the Office. 

19 (2) UNEXPENDED FUNDS.—Unexpended funds 

20 transferred pursuant to this subsection shall be used 

21 only for the purposes for which the funds were origi22 nally authorized and appropriated. 

23 (h) INCIDENTAL TRANSFERS.— 

24 (1) IN GENERAL.—The Director of the Office of 

25 Management and Budget, at any time the Director 
59 

•S 1439 IS

1 may provide, may make such determinations as are 

2 necessary with regard to the functions transferred 

3 by this section, and make such additional incidental 

4 dispositions of personnel, assets, liabilities, grants, 

5 contracts, property, records, and unexpended bal6 ances of appropriations, authorizations, allocations, 

7 and other funds held, used, arising from, available 

8 to, or to be made available in connection with such 

9 functions, as are necessary, to carry out this section. 

10 (2) TERMINATION OF AFFAIRS.—The Director 

11 of the Office of Management and Budget shall pro12 vide for the termination of the affairs of all entities 

13 terminated by this section and for any further meas14 ures and dispositions as are necessary to effectuate 

15 the purposes of this section. 

16 (i) EFFECT ON PERSONNEL.— 

17 (1) IN GENERAL.—Except as otherwise pro18 vided by this section, the transfer pursuant to this 

19 section of full-time personnel (except special Govern20 ment employees) and part-time personnel holding 

21 permanent positions shall not cause any such em22 ployee to be separated or reduced in grade or com23 pensation for a period of at least 1 year after the 

24 date of transfer of the employee under this section. 
60 

•S 1439 IS

1 (2) EXECUTIVE SCHEDULE POSITIONS.—Except 

2 as otherwise provided in this section, any person 

3 who, on the day preceding the date of enactment of 

4 this Act, held a position compensated in accordance 

5 with the Executive Schedule prescribed in chapter 

6 53 of title 5, United States Code, and who, without 

7 a break in service, is appointed to a position in the 

8 Office having duties comparable to the duties per9 formed immediately preceding such appointment 

10 shall continue to be compensated in the new position 

11 at not less than the rate provided for the previous 

12 position, for the duration of the service of the person 

13 in the new position. 

14 (3) TERMINATION OF CERTAIN POSITIONS.— 

15 Positions whose incumbents are appointed by the 

16 President, by and with the advice and consent of the 

17 Senate, the functions of which are transferred by 

18 this title, shall terminate on the date of enactment 

19 of this Act. 

20 (j) SEPARABILITY.—If a provision of this section or 

21 the application of this section to any person or cir22 cumstance is held invalid, neither the remainder of this 

23 section nor the application of the provision to other per24 sons or circumstances shall be affected. 

25 (k) TRANSITION.—The Under Secretary may use— 
61 

•S 1439 IS

1 (1) the services of the officers, employees, and 

2 other personnel of the Assistant Secretary for Indian 

3 Affairs relating to functions transferred to the Office 

4 by this section; and 

5 (2) funds appropriated to the functions for such 

6 period of time as may reasonably be needed to facili7 tate the orderly implementation of this section. 

8 (l) REFERENCES.—Any reference in a Federal law, 

9 Executive order, rule, regulation, delegation of authority, 

10 or document relating to the Assistant Secretary for Indian 

11 Affairs, with respect to functions transferred under this 

12 section, shall be deemed to be a reference to the Under 

13 Secretary. 

14 (m) RECOMMENDED LEGISLATION.—Not later than 

15 180 days after the effective date of this title, the Under 

16 Secretary, in consultation with the appropriate committees 

17 of Congress and the Director of the Office of Management 

18 and Budget, shall submit to Congress any recommenda19 tions relating to additional technical and conforming 

20 amendments to Federal law to reflect the changes made 

21 by this section. 

22 (n) EFFECT OF SECTION.— 

23 (1) CONTINUING EFFECT OF LEGAL DOCU24 MENTS.—Any legal document relating to a function 

25 transferred by this section that is in effect on the 
62 

•S 1439 IS

1 date of enactment of this Act shall continue in effect 

2 in accordance with the terms of the document until 

3 the document is modified or terminated by— 

4 (A) the President; 

5 (B) the Under Secretary; 

6 (C) a court of competent jurisdiction; or 

7 (D) operation of Federal or State law. 

8 (2) PROCEEDINGS NOT AFFECTED.—This sec9 tion shall not affect any proceeding (including a no10 tice of proposed rulemaking, an administrative pro11 ceeding, and an application for a license, permit, 

12 certificate, or financial assistance) relating to a 

13 function transferred under this section that is pend14 ing before the Assistant Secretary on the date of en15 actment of this Act. 

16 SEC. 505. OFFICE OF SPECIAL TRUSTEE FOR AMERICAN IN17 DIANS. 

18 (a) TERMINATION.—Notwithstanding sections 302 

19 and 303 of the American Indian Trust Fund Management 

20 Reform Act of 1994 (25 U.S.C. 4042; 4043), the Office 

21 of Special Trustee for American Indians shall terminate 

22 on the effective date of this section. 

23 (b) TRANSFER OF FUNCTIONS.—There is transferred 

24 to the Under Secretary any function of the Special Trustee 
63 

•S 1439 IS

1 for American Indians that has not been carried out by 

2 the Special Trustee as of the effective date of this section. 

3 (c) DETERMINATIONS OF CERTAIN FUNCTIONS BY

4 THE OFFICE OF MANAGEMENT AND BUDGET.—If nec5 essary, the Office of Management and Budget shall make 

6 any determination relating to the functions transferred 

7 under subsection (b). 

8 (d) PERSONNEL PROVISIONS.— 

9 (1) APPOINTMENTS.—The Under Secretary 

10 may appoint and fix the compensation of such offi11 cers and employees as the Under Secretary deter12 mines to be necessary to carry out any function 

13 transferred under this section. 

14 (2) REQUIREMENTS.—Except as otherwise pro15 vided by law— 

16 (A) any officer or employee described in 

17 paragraph (1) shall be appointed in accordance 

18 with the civil service laws; and 

19 (B) the compensation of such an officer or 

20 employee shall be fixed in accordance with title 

21 5, United States Code. 

22 (e) DELEGATION AND ASSIGNMENT.— 

23 (1) IN GENERAL.—Except as otherwise ex24 pressly prohibited by law or otherwise provided by 

25 this section, the Under Secretary may— 
64 

•S 1439 IS

1 (A) delegate any of the functions trans2 ferred to the Under Secretary under this sec3 tion and any function transferred or granted to 

4 the Under Secretary after the effective date of 

5 this section to such officers and employees of 

6 the Office as the Under Secretary may des7 ignate; and 

8 (B) authorize successive redelegations of 

9 the functions as are necessary or appropriate. 

10 (2) DELEGATION.—No delegation of functions 

11 by the Under Secretary under this section shall re12 lieve the Under Secretary of responsibility for the 

13 administration of the functions. 

14 (f) REORGANIZATION.—The Under Secretary may al15 locate or reallocate any function transferred under sub16 section (b) among the officers of the Office, and establish, 

17 consolidate, alter, or discontinue such organizational enti18 ties in the Office as the Under Secretary determines to 

19 be necessary or appropriate. 

20 (g) RULES.—The Under Secretary may prescribe, in 

21 accordance with the provisions of chapters 5 and 6 of title 

22 5, United States Code, such rules and regulations as the 

23 Under Secretary determines to be necessary or appro24 priate to administer and manage the functions of the Of25 fice. 
65 

•S 1439 IS

1 (h) TRANSFER AND ALLOCATIONS OF APPROPRIA2 TIONS AND PERSONNEL.— 

3 (1) IN GENERAL.—Except as otherwise pro4 vided in this section, the personnel employed in con5 nection with, and the assets, liabilities, contracts, 

6 property, records, and unexpended balances of ap7 propriations, authorizations, allocations, and other 

8 funds employed, used, held, arising from, available 

9 to, or to be made available in connection with the 

10 functions transferred by this section, subject to sec11 tion 1531 of title 31, United States Code, shall be 

12 transferred to the Office. 

13 (2) UNEXPENDED FUNDS.—Unexpended funds 

14 transferred pursuant to this subsection shall be used 

15 only for the purposes for which the funds were origi16 nally authorized and appropriated. 

17 (i) INCIDENTAL TRANSFERS.— 

18 (1) IN GENERAL.—The Director of the Office of 

19 Management and Budget, at any time the Director 

20 may provide, may make such determinations as are 

21 necessary with regard to the functions transferred 

22 by this section, and make such additional incidental 

23 dispositions of personnel, assets, liabilities, grants, 

24 contracts, property, records, and unexpended bal25 ances of appropriations, authorizations, allocations, 
66 

•S 1439 IS

1 and other funds held, used, arising from, available 

2 to, or to be made available in connection with such 

3 functions, as are necessary, to carry out this section. 

4 (2) TERMINATION OF AFFAIRS.—The Director 

5 of the Office of Management and Budget shall pro6 vide for the termination of the affairs of all entities 

7 terminated by this section and for any further meas8 ures and dispositions as are necessary to effectuate 

9 the purposes of this section. 

10 (j) EFFECT ON PERSONNEL.— 

11 (1) IN GENERAL.—Except as otherwise pro12 vided by this section, the transfer pursuant to this 

13 section of full-time personnel (except special Govern14 ment employees) and part-time personnel holding 

15 permanent positions shall not cause any such em16 ployee to be separated or reduced in grade or com17 pensation for a period of at least 1 year after the 

18 date of transfer of the employee under this section. 

19 (2) EXECUTIVE SCHEDULE POSITIONS.—Except 

20 as otherwise provided in this section, any person 

21 who, on the day preceding the effective date of this 

22 section, held a position compensated in accordance 

23 with the Executive Schedule prescribed in chapter 

24 53 of title 5, United States Code, and who, without 

25 a break in service, is appointed to a position in the 
67 

•S 1439 IS

1 Office having duties comparable to the duties per2 formed immediately preceding such appointment, 

3 shall continue to be compensated in the new position 

4 at not less than the rate provided for the previous 

5 position, for the duration of the service of the person 

6 in the new position. 

7 (3) TERMINATION OF CERTAIN POSITIONS.— 

8 Positions the incumbents of which are appointed by 

9 the President, by and with the advice and consent 

10 of the Senate, and the functions of which are trans11 ferred by this title, shall terminate on the effective 

12 date of this section. 

13 (k) SEPARABILITY.—If a provision of this section or 

14 the application of this section to any person or cir15 cumstance is held invalid, neither the remainder of this 

16 section nor the application of the provision to other per17 sons or circumstances shall be affected. 

18 (l) TRANSITION.—The Under Secretary may use— 

19 (1) the services of the officers, employees, and 

20 other personnel of the Special Trustee relating to 

21 functions transferred to the Office by this section; 

22 and 

23 (2) funds appropriated to those functions for 

24 such period of time as may reasonably be needed to 

25 facilitate the orderly implementation of this section. 
68 

•S 1439 IS

1 (m) REFERENCES.—Any reference in a Federal law, 

2 Executive order, rule, regulation, delegation of authority, 

3 or document relating to the Special Trustee, with respect 

4 to functions transferred under this section, shall be 

5 deemed to be a reference to the Under Secretary. 

6 (n) RECOMMENDED LEGISLATION.—Not later than 

7 180 days after the effective date of this title, the Under 

8 Secretary, in consultation with the appropriate committees 

9 of Congress and the Director of the Office of Management 

10 and Budget, shall submit to Congress any recommenda11 tions relating to additional technical and conforming 

12 amendments to Federal law to reflect the changes made 

13 by this section. 

14 (o) EFFECT OF SECTION.— 

15 (1) CONTINUING EFFECT OF LEGAL DOCU16 MENTS.—Any legal document relating to a function 

17 transferred by this section that is in effect on the ef18 fective date of this section shall continue in effect in 

19 accordance with the terms of the document until the 

20 document is modified or terminated by— 

21 (A) the President; 

22 (B) the Under Secretary; 

23 (C) a court of competent jurisdiction; or 

24 (D) operation of Federal or State law. 
69 

•S 1439 IS

1 (2) PROCEEDINGS NOT AFFECTED.—This sec2 tion shall not affect any proceeding (including a no3 tice of proposed rulemaking, an administrative pro4 ceeding, and an application for a license, permit, 

5 certificate, or financial assistance) relating to a 

6 function transferred under this section that is pend7 ing before the Special Trustee on the effective date 

8 of this section. 

9 (p) EFFECTIVE DATE.—This section shall take effect 

10 on December 31, 2008. 

11 SEC. 506. HIRING PREFERENCE. 

12 In appointing or otherwise hiring any employee to the 

13 Office, the Under Secretary shall give preference to Indi14 ans in accordance with section 12 of the Act of June 8, 

15 1934 (25 U.S.C. 472). 

16 SEC. 507. AUTHORIZATION OF APPROPRIATIONS. 

17 There are authorized to be appropriated such sums 

18 as are necessary to carry out this title. 

19 TITLE VI—AUDIT OF INDIAN 

20 TRUST FUNDS 

21 SEC. 601. AUDITS AND REPORTS. 

22 (a) FINANCIAL STATEMENTS AND INTERNAL CON23 TROL REPORT.— 

24 (1) FINANCIAL STATEMENTS.—For each fiscal 

25 year beginning after the enactment of this Act, the 
70 

•S 1439 IS

1 Secretary of Interior shall prepare financial state2 ments for individual Indian, Indian tribal, and other 

3 Indian trust accounts in accordance with generally 

4 accepted accounting principles of the Federal Gov5 ernment. 

6 (2) INTERNAL CONTROL REPORT.—Concur7 rently with the financial statements under by para8 graph (1), the Secretary shall prepare an internal 

9 control report that— 

10 (A) establishes the responsibility of the 

11 Secretary for establishing and maintaining an 

12 adequate internal control structure and proce13 dures for financial reporting under this Act; 

14 and 

15 (B) assesses the effectiveness of the inter16 nal control structure and procedures for finan17 cial reporting under subparagraph (A) during 

18 the preceding fiscal year. 

19 (b) INDEPENDENT EXTERNAL AUDITOR.— 

20 (1) IN GENERAL.—The Comptroller General of 

21 the United States shall enter into a contract with an 

22 independent external auditor to conduct an audit 

23 and prepare a report in accordance with this sub24 paragraph. 
71 

•S 1439 IS

1 (2) AUDIT REPORT.—An independent external 

2 auditor shall submit to the Committee on Indian Af3 fairs of the Senate, and make available to the public, 

4 an audit of the financial statements under sub5 section (a)(1) in accordance with— 

6 (A) generally accepted auditing standards 

7 of the Federal Government; and 

8 (B) the financial audit manual jointly 

9 issued by the Government Accountability Office 

10 and the Council on Integrity and Efficiency of 

11 the President. 

12 (3) ATTESTATION AND REPORT.—In conducting 

13 the audit under paragraph (2), the independent ex14 ternal auditor shall attest to, and report on, the as15 sessment of internal controls made by the Secretary 

16 under subsection (a)(2)(B). 

17 (4) PAYMENT FOR AUDIT AND REPORT.— 

18 (A) TRANSFER OF FUNDS.—On request of 

19 the Comptroller General, the Secretary shall 

20 transfer to the Government Accountability Of21 fice from funds made available for administra22 tive expenses of the Department of Interior the 

23 amount requested by the Comptroller General 

24 to pay for an annual audit and report. 

25 (B) CREDIT TO ACCOUNT.— 
72 

•S 1439 IS

1 (i) IN GENERAL.—The Controller 

2 General shall credit the amount of any 

3 funds transferred under subparagraph (A) 

4 to the account established for salaries and 

5 expenses of the Government Accountability 

6 Office. 

7 (ii) AVAILABILITY.—Any amount 

8 credited under clause (i) shall be made 

9 available on receipt, without fiscal year 

10 limitation, to cover the full costs of the 

11 audit and report. 

12 SEC. 602. AUTHORIZATION OF APPROPRIATIONS. 

13 There are authorized to be appropriated such sums 

14 as are necessary to carry out this title. 

Æ