I 

111TH CONGRESS 

1ST SESSION H. R. 4384 

To establish the Utah Navajo Trust Fund Commission, and for other 

purposes. 

IN THE HOUSE OF REPRESENTATIVES 

DECEMBER 16, 2009 

Mr. MATHESON introduced the following bill; which was referred to the 

Committee on Natural Resources 

A BILL 

To establish the Utah Navajo Trust Fund Commission, 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. 

4 This Act shall be cited as the ‘‘Utah Navajo Trust 

5 Fund Act of 2009’’. 

6 SEC. 2. DEFINITIONS. 

7 In this Act: 

8 (1) AUDIT.—The term ‘‘audit’’ means an audit 

9 using accounting procedures that conform to gen10 erally accepted accounting principles and auditing 


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1 procedures that conform to chapter 75 of title 31, 

2 United States Code (commonly known as the ‘‘Sin3 gle Audit Act’’ of 1984). 

4 (2) BENEFICIARY.—The term ‘‘beneficiary’’ 

5 means an enrolled member of the federally recog6 nized Indian tribe, the Navajo Nation, who resides 

7 in San Juan County, Utah and is listed on a Chap8 ter’s roll of members. 

9 (3) ELECTION BOARD.—The term ‘‘Election 

10 Board’’ means all of the Utah Navajo Chapter 

11 Presidents and Vice-Presidents. 

12 (4) INCOME.—The term ‘‘income’’ means all 

13 revenues from investments made by the Trustee of 

14 the trust fund principal, including income from the 

15 lease of Trust assets or from any other source. 

16 (5) PRINCIPAL.—The term ‘‘principal’’ 

17 means— 

18 (A) the balance of the Trust Fund as of 

19 the date the moneys are received from the State 

20 of Utah in accordance with section 12; and 

21 (B) all moneys transferred into the Trust 

22 Fund from royalties received as specified in the 

23 1933 Act. 

24 (6) STATE.—The term ‘‘State’’ means the State 

25 of Utah. 


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1 (7) TRUST.—The term ‘‘Trust’’ means the 

2 Utah Navajo Trust Fund established in section 12. 

3 (8) TRUST ADMINISTRATOR.—The term ‘‘Trust 

4 Administrator’’ means the professional trust admin5 istrator hired by the Utah Navajo Trust Fund Com6 mission to perform the duties and responsibilities as 

7 provided in section 11. 

8 (9) TRUST ASSET.—The term ‘‘Trust asset’’ 

9 means any tangible property (such as land, build10 ings, cash, stocks, and bonds) held by the Trust Ad11 ministrator for the benefit of the beneficiaries. 

12 (10) TRUST FUNDS.—The term ‘‘Trust funds’’ 

13 means— 

14 (A) all moneys transferred into the Utah 

15 Navajo Trust Fund from royalties received as 

16 specified in the 1933 Act; 

17 (B) all moneys or proceeds derived from 

18 Trust assets; 

19 (C) all investment income derived from the 

20 funds in subparagraphs (A) and (B); and funds 

21 held by the Trust Administrator for the benefit 

22 of the beneficiaries; and 

23 (D) the funds and assets transferred from 

24 the State of Utah pursuant to section 12. 


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1 (11) UTAH NAVAJO TRUST FUND COMMISSION; 

2 COMMISSION.—The term ‘‘Utah Navajo Trust Fund 

3 Commission’’ or ‘‘Commission’’ means the entity 

4 comprising the representatives elected by the bene5 ficiaries in accordance with this Act. 

6 (12) UTAH NAVAJO CHAPTERS; CHAPTERS.— 

7 The term ‘‘Utah Navajo Chapters’’ or ‘‘Chapters’’ 

8 means the following chapters of the federally recog9 nized Indian tribe, the Navajo Nation: 

10 (A) Aneth Chapter. 

11 (B) Mexican Water Chapter. 

12 (C) Navajo Mountain Chapter. 

13 (D) Oljato Chapter. 

14 (E) Dennehoto Chapter. 

15 (F) Red Mesa Chapter. 

16 (G) Teec Nos Pos Chapter. 

17 SEC. 3. AMENDMENT TO PROVIDE FOR THE USE OF ROYAL18 TIES. 

19 The Act titled ‘‘An Act to permanently set aside cer20 tain lands in Utah as an addition to the Navajo Indian 

21 Reservation, and for other purposes’’, approved March 18, 

22 1933 (47 Stat. 1418), is amended in the first section by 

23 striking ‘‘paid to the State of Utah’’ and all that follows 

24 through the end of that section and inserting ‘‘deposited 

25 into the ‘Utah Navajo Trust Fund’ established pursuant 


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1 to section 12 of the Utah Navajo Trust Fund Act of 

2 2009.’’. 

3 SEC. 4. ELECTION OF UTAH NAVAJO TRUST FUND COMMIS4 SION. 

5 (a) IN GENERAL.—Not later than 60 days from the 

6 date of enactment of this Act, each Utah Navajo Chapter 

7 shall conduct, by secret ballot, an election in accordance 

8 with this Act for the purpose of selecting a representative 

9 to the Utah Navajo Trust Fund Commission. All Chapters 

10 shall conduct their elections on the same day. 

11 (b) CANDIDATES; VOTERS.—Each Utah Navajo 

12 Chapter shall, by resolution in an open meeting, determine 

13 which candidates for representative to the Utah Navajo 

14 Trust Fund Commission meet the criteria set forth in sec15 tion 9 and are able to carry out the duties specified in 

16 this Act. Each candidate that a Utah Navajo Chapter de17 termines meets the criteria in section 9 and who is able 

18 to carry out the duties specified in this Act shall be placed 

19 on the ballot as a potential representative to the Utah 

20 Navajo Trust Fund Commission for a vote by the bene21 ficiaries who are 18 years of age or older and are reg22 istered with that Chapter. Eligible voters within this sec23 tion are not limited to voters who voted in the last election. 

24 Only voters registered with the Chapter conducting the 

25 election for a representative to the Utah Navajo Trust 


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1 Fund Commission and who are beneficiaries of the Trust 

2 are eligible to vote on that chapter ballot. 

3 (c) REIMBURSEMENT FOR COSTS.—The reasonable 

4 costs of conducting the election, as determined in the 

5 Commission’s discretion, may be reimbursed from the 

6 Trust, at the discretion of the Utah Navajo Trust Fund 

7 Commission, to each Utah Navajo Chapter within 90 days 

8 of receipt of the Trust assets transferred pursuant to sec9 tion 12, and if not reimbursed by that time, reimburse10 ment is no longer allowed. If the Commission determines 

11 to reimburse the reasonable costs for one Utah Navajo 

12 Chapter, the Commission must reimburse the reasonable 

13 costs for all Chapters. 

14 SEC. 5. NOTICE OF ELECTION. 

15 Once an election is set by each Utah Navajo Chapter 

16 to elect a representative to the Utah Navajo Trust Fund 

17 Commission, each Chapter shall publish notice of the elec18 tion in accordance with this Act. Notice of the election 

19 is sufficient if published at least once for two consecutive 

20 weeks in a newspaper of reservation wide and San Juan 

21 County wide distribution. Each Chapter may provide other 

22 notice as appropriate. The notice shall contain— 

23 (1) the date of the election; 

24 (2) a descriptive summary of the purpose of the 

25 election; 


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1 (3) a descriptive summary of each candidate for 

2 that Chapter’s representative to the Utah Navajo 

3 Trust Fund Commission; 

4 (4) a brief statement of the legal effect of the 

5 proposed measure as it will appear on the ballot; 

6 (5) a citation to the Chapter resolution ref7 erenced in section 4(b) where the Chapter has deter8 mined that each applicant listed on the ballot meets 

9 the criteria set forth in this Act; 

10 (6) notice that copies of the complete text of 

11 the referendum measure and copies of each deter12 mination that a candidate meets the requirements of 

13 the Act are available for inspection or purchase (du14 plication cost only) at the Chapter Office for 15 

15 days prior to the election; and 

16 (7) a specific statement that the candidate who 

17 receives the highest number of votes from that 

18 Chapter’s election shall be the Chapter’s representa19 tive to the Utah Navajo Trust Fund Commission. 

20 SEC. 6. FORM OF BALLOT. 

21 Each Chapter shall prepare the official ballot for the 

22 election of a representative to the Utah Navajo Trust 

23 Fund Commission in the following manner: 

24 (1) The official title of the referendum measure 

25 shall be printed on the official ballot. The official 


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1 title of the referendum measure to be voted upon 

2 shall be agreed upon by all Chapters. 

3 (2) A descriptive summary of the referendum 

4 measure shall be prepared by each Chapter and 

5 printed on the official ballot following the official 

6 title. The descriptive summary shall provide the reg7 istered voters with an unbiased objective summary of 

8 the effect of a vote. The referendum shall specifically 

9 state that the candidate receiving the highest num10 ber of votes shall be selected as that Chapter’s rep11 resentative to the Utah Navajo Trust Fund Commis12 sion. The Chapters may obtain independent legal as13 sistance in drafting the descriptive summary. 

14 (3) Following the official title and descriptive 

15 summary of the referendum measure, a brief state16 ment of legal effect shall be printed on the ballot. A 

17 brief statement of legal effect shall, in a brief and 

18 objective phrase, explain the resulting effect a ‘‘yes’’ 

19 or ‘‘for’’ and ‘‘no’’ or ‘‘against’’ vote will have on ex20 isting law when a candidate receives the highest 

21 number of votes cast in that particular manner. The 

22 brief statement of legal effect shall be agreed upon 

23 by all Chapters. The Chapters may obtain inde24 pendent legal advice in drafting the brief statement 


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1 of legal effect. The brief statement of legal effect 

2 shall appear on the ballot as follows: 

3 (A) A ‘‘yes’’ (or ‘‘for’’) vote shall have the 

4 legal effect of lll (the blank to be filled in 

5 as appropriate). 

6 (B) A ‘‘not’’ (or ‘‘against’’) vote shall have 

7 the legal effect of lll (the blank to be filled 

8 in as appropriate). 

9 (4) Below the brief statement of legal effect 

10 there shall be printed on the ballot the cor11 responding words ‘‘yes’’ or ‘‘for’’ and ‘‘no’’ or 

12 ‘‘against’’, as may be appropriate, and a place for 

13 the voter to put a mark indicating his/her pref14 erence. Each voter may only vote once and may only 

15 vote ‘‘yes’’ or ‘‘for’’ for one candidate. 

16 (5) A minimum of four copies of the complete 

17 text of the referendum measure shall be made avail18 able in each polling place for the voters to review. 

19 Each voter shall be informed by the poll judges and 

20 clerks at each polling place that copies of the com21 plete text are available to review in the polling place. 

22 (6) Dispute of an official title, descriptive sum23 mary or brief statement of legal effect may be deter24 mined by a hearing before the Election Board. A 

25 dispute must be raised 7 days before the election 


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1 and a decision on the dispute must be rendered by 

2 3 days before the election. 

3 SEC. 7. CONDUCT OF ELECTIONS. 

4 (a) POLLING PLACE SUPERVISION; APPEAL BY PER5 SONS NOT ALLOWED TO VOTE.— 

6 (1) POLL JUDGE.—Before an election, the 

7 President of each Utah Navajo Chapter shall hire at 

8 least one independent poll judge, provide such poll 

9 judge with necessary instruction, swearing in, and 

10 transport the ballot boxes and voting machines to 

11 the polling places for each election community. The 

12 poll judge shall— 

13 (A) guard the polls; 

14 (B) maintain order; 

15 (C) instruct voters in the techniques of 

16 balloting; 

17 (D) retain custody of the account for all 

18 ballots, the ballot box, and the poll books; and 

19 (E) supervise and have supervisory author20 ity over any assistant judges and poll clerks in 

21 guarding the polls. 

22 (2) POLL CLERK.—Each Utah Navajo Chapter 

23 shall hire a poll clerk to enter each voter in the poll 

24 books and issue ballots. 


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1 (3) POLLING PLACE.—A voter must vote at the 

2 polling place where he or she is registered to vote. 

3 (4) APPEAL OF VOTING ELIGIBILITY.—Any per4 son who is not allowed to vote may appeal to the 

5 Election Board immediately, whose decision shall be 

6 final. 

7 (b) TIME.—Voting shall begin at 6:00 a.m. and shall 

8 end at 7:00 p.m. All voters present at the poll places and 

9 in line to vote at 7:00 p.m. shall be allowed to vote. 

10 (c) COUNTING OF VOTES.—At the close of the elec11 tion, the poll judge at each polling place shall tabulate the 

12 results of the balloting, seal and lock the ballot boxes with 

13 the poll books and keys in the ballot boxes, and transmit 

14 the results of the balloting to the Election Board via tele15 phone or radio communications and in writing. A poll 

16 watcher shall be allowed at all times during the balloting 

17 and during the counting of the votes. 

18 (d) CANVASS OF VOTES; RECOUNT.— 

19 (1) ITEMS FORWARDED TO ELECTION BOARD.— 

20 Each poll judge shall forward to the Election Board 

21 for distribution the following: 

22 (A) Sealed ballot boxes containing all of 

23 the ballots cast in the election. 

24 (B) All unused or spoiled ballots. 

25 (C) Data packs. 


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1 (D) Keys. 

2 (E) A written statement of the election re3 sults on a form provided by the Election Board 

4 and certified by the poll judge at each polling 

5 place. 

6 (F) The list of beneficiaries in the Chap7 ter. 

8 (2) CANVASS.—The Election Board shall— 

9 (A) canvass the written statements of elec10 tion results from each polling place; and 

11 (B) total the election results. 

12 (3) RECOUNT.—No recount of ballots of any 

13 polling place shall be made unless, not later than 10 

14 days after the election, a registered voter who voted 

15 on the referendum objects and the Election Board 

16 sees sufficient reason to recount the election results. 

17 The Election Board may, on its own initiative, con18 duct a recount of the votes of any polling place if 

19 the Election Board determines that there may have 

20 been substantial irregularity in the voting or count21 ing of the ballots. The Election Board may use the 

22 poll judge to assist in canvassing and recounting bal23 lots. 


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1 (e) CERTIFICATION OF ELECTION.—Not less than 10 

2 days following an election, the Election Board shall certify 

3 the election results. 

4 (f) APPEAL OF DISPUTED ELECTIONS.— 

5 (1) IN GENERAL.—A disputed election may be 

6 appealed, in writing, to the Election Board by an eli7 gible beneficiary who voted in the referendum elec8 tion not later than 10 calendar days after the elec9 tion. 

10 (2) RULES AND REGULATIONS.—The Election 

11 Board shall— 

12 (A) issue rules and regulations for the de13 termination of how such disputes shall be han14 dled; and 

15 (B) pursuant to rules and regulations 

16 issued under subparagraph (A), issue a decision 

17 upholding or vacating disputed elections. 

18 SEC. 8. EFFECT OF UTAH NAVAJO TRUST FUND COMMIS19 SION ELECTION. 

20 (a) BINDING.—Each Chapter’s vote on a representa21 tive for the Utah Navajo Trust Fund Commission shall 

22 be binding and have the effect of law. 

23 (b) SELECTION AMENDED OR REPEALED.—The se24 lection of a representative for the Utah Navajo Trust 


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1 Fund Commission by this referendum election shall be 

2 amended or repealed only— 

3 (1) when the term ends; 

4 (2) by the outcome of a vote on a subsequent 

5 referendum or initiative election by a Chapter con6 cerning the same subject matter as that of the ref7 erendum which originally adopted the legislation; or 

8 (3) if the United States Congress effectively 

9 amends or repeals this Act. 

10 SEC. 9. APPLICATION REQUIREMENTS. 

11 Candidates for representative to the Utah Navajo 

12 Trust Fund Commission shall attest that he or she has 

13 not been convicted at any time of an offense of dishonest 

14 conduct against, or arising out of, any Federal, State, or 

15 Navajo Nation law. 

16 SEC. 10. UTAH NAVAJO TRUST FUND COMMISSION. 

17 (a) ESTABLISHMENT.—Not later than 90 days after 

18 the date of the enactment of this Act, there shall be estab19 lished a Utah Navajo Trust Fund Commission. 

20 (b) MEMBERS; TERMS.—The Commission shall have 

21 7 members, composed of one member elected by each of 

22 the 7 Utah Navajo Chapters. Each member shall serve 

23 for a term of 4 years. 

24 (c) DUTIES.—The Commission shall— 


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(1) select by at least a 5 1 ⁄7 vote an independent 

2 Trust Administrator for the Utah Navajo Trust 

3 Fund that meets the requirements of this Act and 

4 that has no conflict of interest with the Commission; 

5 (2) ensure that amounts in the Trust are in6 vested, managed, and administered for the health, 

7 education, and general welfare of the beneficiaries; 

8 (3) establish written investment goals, objec9 tives, and guidelines for the investment of the Trust 

10 assets, determine projects to fund, define rules of 

11 eligibility, establish applications, and monitor imple12 mentation of the Utah Navajo Trust Fund; 

13 (4) authorize expenditure of amounts in the 

14 Utah Navajo Trust Fund for approved projects only; 

15 (5) report to the beneficiaries through each 

16 Chapter on— 

17 (A) details of recommended expenditures 

18 as they relate to community purposes; 

19 (B) the achievement of the objectives of 

20 the Utah Navajo Trust Fund; and 

21 (C) future projects, plans, and programs 

22 under consideration; 

23 (6) have a thorough understanding of this Act; 

24 (7) ensure that not more than 5 percent of the 

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1 cal year are expended on administrative costs of the 

2 Commission and the Trust Administrator; 

3 (8) not use Trust assets for the personal use of 

4 the Commission members; 

5 (9) obtain an annual independent audit of the 

6 Utah Navajo Trust Fund; 

7 (10) report to the beneficiaries through each 

8 Chapter— 

9 (A) on the audit obtained by the Commis10 sion and the Trust Administrator; 

11 (B) the use of the Trust property for im12 plementation and community purposes as pro13 vided in this Act and the annual assessment re14 quired by this section; and 

15 (C) the investment of the Trust property, 

16 including compliance with the objectives of the 

17 Trust and results for each year; 

18 (11) establishing and making available to the 

19 beneficiaries policies and procedures for Trust Fund 

20 management and accounting; 

21 (12) providing adequate staffing, supervision, 

22 and training for Trust Fund management and ac23 counting; 


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1 (13) prepare and maintain a census of bene2 ficiaries based on data and documentation provided 

3 by the Chapters; 

4 (14) administer its duties pursuant to this Act 

5 in offices located in Montezuma Creek on the Navajo 

6 Nation Reservation in San Juan County, Utah; 

7 (15) establish a process by which the bene8 ficiaries can apply for health, education, and housing 

9 assistance; 

10 (16) ensure that Navajos living outside of the 

11 Navajo Nation in San Juan County, Utah, remain 

12 eligible for educational assistance from the Trust 

13 Fund; 

14 (17) to make rules to govern its operations, em15 ploy professional staff, and contract with outside ad16 visers to provide legal or other services necessary for 

17 the proper administration of this Act; and 

18 (18) maintain records of Commission meetings, 

19 decisions, and accounts. 

20 (d) AUTHORITIES.—The Commission may— 

21 (1) retain independent advisors to assist it in 

22 the formulation and adoption of its investment 

23 guidelines; and 

24 (2) hire employees as necessary to assist in car25 rying out the Commission’s duties under this Act. 


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1 (e) APPLICABLE LAW.—The Commission, its officers, 

2 agents, and employees shall be subject to the laws of the 

3 State of Utah and shall undertake its duties in accordance 

4 with the laws of the State of Utah. In the absence of more 

5 specific statutory duties and responsibilities under Federal 

6 or State law, common law duties shall govern the adminis7 tration of the Trust. 

8 (f) STATUS UNDER CERTAIN LAWS.—The Commis9 sion, its officers, agents, and employees shall not be a de10 partment, agency, or instrumentality of the Government 

11 of the United States and shall not be subject to title 31, 

12 United States Code. The Commission, and its officers, em13 ployees, and agents shall not be considered officers, em14 ployees, or agents of the Government of the United States. 

15 (g) USES OF TRUST ASSETS.—Not later than 60 

16 days after receipt of the Trust assets pursuant to section 

17 12, and annually thereafter, the Commission shall conduct 

18 an annual assessment to determine the eligible uses of 

19 Trust assets and modify uses based on assessment anal20 ysis results. Trust assets may only be used for the health, 

21 education, and welfare of the beneficiaries. 

22 (h) ASSESSMENT.—The term ‘‘assessment’’ means 

23 taking one of the following actions to assess the health, 

24 education, and general welfare needs of the beneficiaries— 

25 (1) a survey of the beneficiaries that includes— 


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1 (A) a random sample large enough to se2 cure an accurate representation of their needs; 

3 and 

4 (B) a response rate large enough to pro5 vide an accurate representation of those needs; 

6 (2) at least three public hearings held to survey 

7 and solicit beneficiary needs that are advertised for 

8 two weeks before the hearing by— 

9 (A) announcements by the Utah Navajo 

10 Chapters, if allowed by the Chapter; 

11 (B) notice posted in the Chapter buildings 

12 and other public locations, if allowed by the 

13 Chapter; 

14 (C) notice of the meeting announced on 

15 the radio or television; and 

16 (D) notice of the meeting published at 

17 least once per week for two consecutive weeks 

18 in any newspaper of reservation wide and San 

19 Juan County wide circulation; or 

20 (3) a physical inventory— 

21 (A) conducted by the Commission; and 

22 (B) coordinated with— 

23 (i) each Utah Navajo Chapter; 

24 (ii) other sources; and 


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1 (iii) conducted to determine needs in2 cluding— 

3 (I) the number and capacity of 

4 public facilities; 

5 (II) the extent of graveled and 

6 paved— 

7 (aa) roads; or 

8 (bb) airstrips; 

9 (III) the inventory of water re10 sources; 

11 (IV) the extent of residential 

12 electrical power distribution; and 

13 (V) the number and condition of 

14 housing units. 

15 (i) ASSESSMENT ANALYSIS RESULTS.—The term 

16 ‘‘assessment analysis results’’ means the analysis— 

17 (1) of the results of the assessment required by 

18 this section; and 

19 (2) that is developed by the Commission in ac20 cordance with this section. 

21 SEC. 11. UTAH NAVAJO TRUST FUND TRUST ADMINIS22 TRATOR. 

23 (a) DUTIES.—The Trust Administrator selected by 

24 the Commission under section 10 shall— 


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1 (1) have a thorough understanding of this Act, 

2 and other policies, procedures, or documents pre3 pared by the Commission; 

4 (2) provide professional financial management 

5 services to assist the Commission in the investment 

6 and administration of the Utah Navajo Trust Fund; 

7 (3) receive and pay out of the Utah Navajo 

8 Trust Fund in accordance with funding directions 

9 received from the Commission and Trust administra10 tion fees and expenses approved by the Commission; 

11 (4) in conjunction with the Commission, obtain 

12 an independent annual audit of the Utah Navajo 

13 Trust Fund; 

14 (5) report to the Commission and the Chapters 

15 on— 

16 (A) the audit; 

17 (B) the use of the Trust Property for the 

18 health, education, and welfare purposes as pro19 vided in this Act and the annual assessment re20 quired by section 10; and 

21 (C) the investment of the Trust property, 

22 including compliance with the objectives of the 

23 Trust and results for each year; 


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1 (6) invest the assets of the Trust in a manner 

2 consistent with the investment guidelines developed 

3 by the Commission; 

4 (7) provide for adequate systems for accounting 

5 for and reporting Trust Fund balances; 

6 (8) provide for adequate controls over receipts 

7 and disbursements; 

8 (9) provide for periodic, timely reconciliations of 

9 financial records to ensure the accuracy of account 

10 information; 

11 (10) determine accurate cash balances; 

12 (11) prepare and supply to the Commission 

13 periodic account statements; and 

14 (12) provide adequate staffing, supervision, and 

15 training for Trust Fund management and account16 ing. 

17 (b) COMPENSATION.—The Trust Administrator may 

18 be compensated for such services on a fixed contract fee 

19 basis or on such other terms and conditions as are reason20 able and customary for such services. 

21 (c) REMOVAL.—The Trust Administrator may be re22 moved by a majority vote of the Commission for illegal 

23 conduct, laundering money, abusing funds, or upon at 

least a 5 24 ⁄7 vote of the Commission for any reason. 


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1 (d) APPLICABLE LAW.—The Trust Administrator, its 

2 officers, agents, and employees shall be subject to the laws 

3 of the State of Utah. The Trust Administrator, its offi4 cers, agents, and employees shall take any actions in ac5 cordance with the laws of the State of Utah. In the ab6 sence of more specific statutory duties and responsibilities 

7 under Federal or State law, common law duties shall gov8 ern the administration of the Trust. 

9 (e) STATUS UNDER CERTAIN LAWS.—The Trust Ad10 ministrator, its officers, agents, and employees shall not 

11 be a department, agency, or instrumentality of the Gov12 ernment of the United States and shall not be subject to 

13 title 31, United States Code. The Financial Trustee and 

14 its officers, employees, and agents shall not be considered 

15 officers, employees, or agents of the Government of the 

16 United States. 

17 SEC. 12. ESTABLISHMENT OF TRUST. 

18 (a) AUDIT.—Not later than 90 days after selection 

19 of a Trust Administrator by the Utah Navajo Trust Fund 

20 Commission in accordance with this Act, the State of Utah 

21 shall prepare an audit and accounting of the Trust assets 

22 in the Utah Navajo Trust Fund, as established and ad23 ministered by the State of Utah prior to passage of this 

24 Act. Not later than 120 days after selection of a Trust 

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1 sion, the State of Utah shall transfer the Trust assets to 

2 the Trust Administrator selected pursuant to this Act. 

3 The Trust Administrator shall establish the Utah Navajo 

4 Trust Fund with the assets transferred from the State of 

5 Utah. 

6 (b) JUDGMENTS.—Any judgments awarded the bene7 ficiaries against the State by a court after the date of 

8 transfer of the assets specified in subsection (a) shall be 

9 transferred into the Trust Fund not later than 90 days 

10 after any final judgment against the State. 

11 SEC. 13. FIDUCIARY STANDARDS OF THE TRUSTEE. 

12 The Commission and the Trust Administrator and 

13 their officers, agents, and employees shall discharge their 

14 duties with respect to the Trust assets solely in the inter15 est of the Utah Navajo Trust Fund and through it, the 

16 beneficiaries of the Trust— 

17 (1) for the exclusive purpose of— 

18 (A) providing benefits to the beneficiaries; 

19 and 

20 (B) defraying reasonable expenses of ad21 ministering the functions of the Trust, not to 

22 exceed 5 per cent per annum; 

23 (2) by diversifying investments so as to mini24 mize the risk of large losses and to avoid dispropor25 tionate influence over a particular industry or firm, 


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1 unless under the circumstances it is clearly prudent 

2 not to do so; 

3 (3) in accordance with this Act; 

4 (4) in choosing and contracting for professional 

5 investment management services and in continuing 

6 the use of an investment manager, the Commission 

7 must act prudently and in the interest of the bene8 ficiaries; 

9 (5) using the highest degree of care, skill, pru10 dence, diligence, and loyalty to— 

11 (A) protect and preserve the trust assets 

12 from loss, damage, unlawful alienation, waste, 

13 and depletion; 

14 (B) ensure that management of Trust as15 sets promotes the interest of the beneficial 

16 owner, and supports the eligible use of the as17 sets specified in this Act; 

18 (C) enforce the terms of all leases or other 

19 agreements that provide for the use of Trust 

20 assets, and take appropriate steps to remedy 

21 trespass on Trust assets; and 

22 (D) account for and identify, collect, de23 posit, and invest, in a timely manner, income 

24 due or held on behalf of the beneficiaries and 

25 in accordance with this Act; 


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1 (6) maintain a verifiable system of records that, 

2 at a minimum, is capable of identifying, with respect 

3 to a Trust asset— 

4 (A) the location of the Trust asset; 

5 (B) any legal encumbrances (such as leases 

6 or permits) applicable to the Trust asset; 

7 (C) the user of the Trust asset; 

8 (D) any rent or other payments made; 

9 (E) the value of land and resources associ10 ated with the Trust asset; 

11 (F) dates of collections, deposits, transfers, 

12 disbursements, imposition of third-party obliga13 tions, statements of earnings, investment in14 struments, and closure of all accounts relating 

15 to the trust fund asset; 

16 (G) documents pertaining to actions taken 

17 to prevent or compensate for any diminishment 

18 of a Trust asset; and 

19 (H) documents that evidence the manage20 ment and disposition of a Trust asset; 

21 (7) establish and maintain a system of records 

22 that permits beneficiaries to obtain information re23 garding Trust assets in a timely manner; 

24 (8) invest Trust funds to ensure that the Trust 

25 remains reasonably productive for the beneficiaries 


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1 consistent with market conditions existing at the 

2 time at which investment is made; and 

3 (9) communicate with beneficiaries regarding 

4 the management and administration of Trust assets. 

5 SEC. 14. PROHIBITIONS WITH RESPECT TO THE TRUST. 

6 (a) IN GENERAL.—The Commission and the Trust 

7 Administrator and their officers, agents, and employees 

8 shall not— 

9 (1) deal with the assets of the Trust in their 

10 own interest; 

11 (2) in an individual or in any other capacity act 

12 in any transaction involving the assets of the Trust 

13 on behalf of a party (or represent a party) whose in14 terests are adverse to the interests of the Trust or 

15 the interests of the beneficiaries; or 

16 (3) receive any consideration for their own per17 sonal account from any party dealing with the assets 

18 of the Trust. 

19 (b) LIABILITY.—Any provision in an agreement or in20 strument that purports to relieve the Commission or the 

21 Trust Administrator from responsibility or liability for a 

22 responsibility, obligation, or duty under this Act shall be 

23 void. Nothing in this Act shall preclude— 

24 (1) the Trust from purchasing insurance for the 

25 Commission or Trust Administrator or for itself to 


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1 cover liability or losses occurring by reason of the 

2 act or omission of the Commission or Trust Admin3 istrator if such insurance permits recourse by the in4 surer against the Commission or Trust Adminis5 trator in the case of a breach of fiduciary obligation 

6 by such Commission or Trust Administrator; or 

7 (2) the Commission or Trust Administrator 

8 from purchasing insurance to cover liability under 

9 this Act from and for their own account. 

10 (c) LIMITATION ON ADMINISTRATIVE FEE USE.— 

11 The Commission or Trust Administrator may not use 

12 Trust Funds, nor claim as administrative costs, funds 

13 used to lobby any Federal, State, or tribal government nor 

14 to travel outside of the boundaries of the Navajo Nation 

15 other than necessary to meet with investment advisors or 

16 auditors or to maintain real property owned by the Trust 

17 Fund at the time of passage of this Act. 

18 SEC. 15. LIABILITY AND BONDING. 

19 The Commission or Trust Administrator and their of20 ficers, employees, and agents who handle funds or other 

21 property of the Trust (hereafter in this subsection referred 

22 to as ‘‘Trust officials’’) shall be bonded. Such bond shall 

23 provide protection to the Trust against loss by reason of 

24 acts of fraud or dishonesty on the part of any Trust offiVerDate Nov 24 2008 00:03 Dec 22, 2009 Jkt 089200 PO 00000 Frm 00028 Fmt 6652 Sfmt 6201 E:\BILLS\H4384.IH H4384

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1 cial, directly or through the connivance of others, and shall 

2 be in accordance with the following: 

3 (1) The amount of such bond shall be fixed at 

4 the beginning of each fiscal year of the Trust by the 

5 Utah Navajo Trust Fund Commission. Such amount 

6 shall not be less than 10 percent of the amount of 

7 the funds handled. 

8 (2) It shall be unlawful for any Trust official to 

9 receive, handle, disburse, or otherwise exercise cus10 tody or control of any of the funds or other property 

11 of the Trust without being bonded as required by 

12 this subsection and it shall be unlawful for any 

13 Trust official, or any other person having authority 

14 to direct the performance of such functions, or any 

15 of them, to be performed by any Trust official, with 

16 respect to whom the requirements of this subsection 

17 have not been met. 

18 (3) It shall be unlawful for any person to pro19 cure any bond required by this subsection from any 

20 surety or other company or through any agent or 

21 broker in whose business operations such person has 

22 any control or significant financial interest, direct or 

23 indirect. 


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1 SEC. 16. AUDIT AND REPORT. 

2 (a) IN GENERAL.—The Trust Administrator shall ac3 count for the daily and annual balances of all Trust funds. 

4 (b) PERIODIC STATEMENT OF PERFORMANCE.— 

5 (1) IN GENERAL.—Not later than 20 business 

6 days after the close of the second calendar quarter 

7 after the date the State transfers the assets in sec8 tion 12, and not later than 20 business days after 

9 the close of each calendar quarter thereafter, the 

10 Trust Administrator shall provide to the bene11 ficiaries, through the Commission and each Chapter, 

12 for whom the Financial Trustee manages the Trust 

13 assets, a statement of performance for the Trust 

14 funds. Such periodic Statement of Performance shall 

15 be published in a newspaper of San Juan countywide 

16 and reservation wide circulation and contain a sum17 mary of the statement. 

18 (2) REQUIREMENTS.—Each statement under 

19 subparagraph (A) shall identify, with respect to the 

20 period covered by the statement— 

21 (A) the source, type, and status of the 

22 funds; 

23 (B) the beginning balance of the funds; 

24 (C) the gains and losses of the funds; 

25 (D) receipts and disbursements of the 

26 funds; and 


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1 (E) the ending balance of the funds. 

2 (c) AUDITS.—With respect to each account con3 taining Trust assets, the Trust Administrator shall con4 duct, for each fiscal year, an audit of all trust funds; and 

5 include, in the first statement of performance after com6 pletion of the audit, a letter describing the results of the 

7 audit. 

8 (d) INDEPENDENT AUDITS.—The Trust shall annu9 ally engage an independent qualified public accountant to 

10 audit the financial statements of the Trust. 

11 SEC. 17. ELIGIBLE BENEFICIARIES. 

12 The Commission shall establish and maintain a cen13 sus of eligible beneficiaries within 60 days of the enact14 ment of this Act. All individuals listed on the census shall 

15 meet the criteria for beneficiaries defined in this Act. 

16 SEC. 18. ENFORCEMENT. 

17 The Commission and the Trust Administrator shall 

18 be liable for any mismanagement, waste, fraud, abuse, or 

19 other claims, actions, or inaction and may be named as 

20 a defendant in any action pursuant to this Act. By accept21 ing the election results for the Commission or the selection 

22 as the Trust Administrator, each submits to the jurisdic23 tion and consents to suit for all proceedings arising from 

24 or related to performance of their duties under this Act, 

25 in the United States District Court for the State of Utah. 


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1 One or more beneficiaries or the United States Govern2 ment may bring a civil action to enjoin any act or practice 

3 by the Commission or the Trust Administrator or their 

4 employees or agents that violates any provision of this Act; 

5 or to obtain other appropriate relief to redress such viola6 tions, or to enforce any provisions of this Act. Express 

7 cause of action and normal equitable remedies shall be 

8 available. 

9 SEC. 19. LIABILITY OF THE UNITED STATES. 

10 (a) IN GENERAL.—Nothing in this Act is intended 

11 to create a cause of action against the United States or 

12 to allow to be maintained in any court any potential 

13 breach-of-trust actions brought by or on behalf of the 

14 beneficiaries of the Utah Navajo Trust Fund for equitable, 

15 monetary, or Administrative Procedure Act-based relief 

16 against the United States whether or not such claims spe17 cifically assert an alleged breach of trust, call for an ac18 counting, or seek declaratory relief. The United States 

19 shall not be liable for any actions or inactions of the Com20 mission or the Trust Administrator. 

21 (b) CERTAIN LIABILITY.—Notwithstanding sub22 section (a), nothing in this Act shall affect the liability 

23 of the United States for misdeeds by the United States 

24 when it had control over Trust assets. 

Æ 


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