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[Congressional Bills 106th Congress]
[From the U.S. Government Publishing Office]
[H.R. 1167 Enrolled Bill (ENR)]

        H.R.1167

                       One Hundred Sixth Congress

                                 of the

                        United States of America

                          AT THE SECOND SESSION

           Begun and held at the City of Washington on Monday,
             the twenty-fourth day of January, two thousand

                                 An Act

 
 To amend the Indian Self-Determination and Education Assistance Act to 
  provide for further self-governance by Indian tribes, and for other 
                                purposes.

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

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Tribal Self-Governance Amendments of 
2000''.

SEC. 2. FINDINGS.

    Congress finds that--
        (1) the tribal right of self-government flows from the inherent 
    sovereignty of Indian tribes and nations;
        (2) the United States recognizes a special government-to-
    government relationship with Indian tribes, including the right of 
    the Indian tribes to self-governance, as reflected in the 
    Constitution, treaties, Federal statutes, and the course of 
    dealings of the United States with Indian tribes;
        (3) although progress has been made, the Federal bureaucracy, 
    with its centralized rules and regulations, has eroded tribal self-
    governance and dominates tribal affairs;
        (4) the Tribal Self-Governance Demonstration Project, 
    established under title III of the Indian Self-Determination and 
    Education Assistance Act (25 U.S.C. 450f note) was designed to 
    improve and perpetuate the government-to-government relationship 
    between Indian tribes and the United States and to strengthen 
    tribal control over Federal funding and program management;
        (5) although the Federal Government has made considerable 
    strides in improving Indian health care, it has failed to fully 
    meet its trust responsibilities and to satisfy its obligations to 
    the Indian tribes under treaties and other laws; and
        (6) Congress has reviewed the results of the Tribal Self-
    Governance Demonstration Project and finds that transferring full 
    control and funding to tribal governments, upon tribal request, 
    over decision making for Federal programs, services, functions, and 
    activities (or portions thereof)--
            (A) is an appropriate and effective means of implementing 
        the Federal policy of government-to-government relations with 
        Indian tribes; and
            (B) strengthens the Federal policy of Indian self-
        determination.

SEC. 3. DECLARATION OF POLICY.

    It is the policy of Congress--
        (1) to permanently establish and implement tribal self-
    governance within the Department of Health and Human Services;
        (2) to call for full cooperation from the Department of Health 
    and Human Services and its constituent agencies in the 
    implementation of tribal self-governance--
            (A) to enable the United States to maintain and improve its 
        unique and continuing relationship with, and responsibility to, 
        Indian tribes;
            (B) to permit each Indian tribe to choose the extent of its 
        participation in self-governance in accordance with the 
        provisions of the Indian Self-Determination and Education 
        Assistance Act relating to the provision of Federal services to 
        Indian tribes;
            (C) to ensure the continuation of the trust responsibility 
        of the United States to Indian tribes and Indian individuals;
            (D) to affirm and enable the United States to fulfill its 
        obligations to the Indian tribes under treaties and other laws;
            (E) to strengthen the government-to-government relationship 
        between the United States and Indian tribes through direct and 
        meaningful consultation with all tribes;
            (F) to permit an orderly transition from Federal domination 
        of programs and services to provide Indian tribes with 
        meaningful authority, control, funding, and discretion to plan, 
        conduct, redesign, and administer programs, services, 
        functions, and activities (or portions thereof) that meet the 
        needs of the individual tribal communities;
            (G) to provide for a measurable parallel reduction in the 
        Federal bureaucracy as programs, services, functions, and 
        activities (or portion thereof) are assumed by Indian tribes;
            (H) to encourage the Secretary to identify all programs, 
        services, functions, and activities (or portions thereof) of 
        the Department of Health and Human Services that may be managed 
        by an Indian tribe under this Act and to assist Indian tribes 
        in assuming responsibility for such programs, services, 
        functions, and activities (or portions thereof); and
            (I) to provide Indian tribes with the earliest opportunity 
        to administer programs, services, functions, and activities (or 
        portions thereof) from throughout the Department of Health and 
        Human Services.

SEC. 4. TRIBAL SELF-GOVERNANCE.

    The Indian Self-Determination and Education Assistance Act (25 
U.S.C. 450 et seq.) is amended by adding at the end the following:

                   ``TITLE V--TRIBAL SELF-GOVERNANCE

``SEC. 501. DEFINITIONS.

    ``(a) In General.--In this title:
        ``(1) Construction project.--The term `construction project'--
            ``(A) means an organized noncontinuous undertaking to 
        complete a specific set of predetermined objectives for the 
        planning, environmental determination, design, construction, 
        repair, improvement, or expansion of buildings or facilities, 
        as described in a construction project agreement; and
            ``(B) does not include construction program administration 
        and activities described in paragraphs (1) through (3) of 
        section 4(m), that may otherwise be included in a funding 
        agreement under this title.
        ``(2) Construction project agreement.--The term `construction 
    project agreement' means a negotiated agreement between the 
    Secretary and an Indian tribe, that at a minimum--
            ``(A) establishes project phase start and completion dates;
            ``(B) defines a specific scope of work and standards by 
        which it will be accomplished;
            ``(C) identifies the responsibilities of the Indian tribe 
        and the Secretary;
            ``(D) addresses environmental considerations;
            ``(E) identifies the owner and operations and maintenance 
        entity of the proposed work;
            ``(F) provides a budget;
            ``(G) provides a payment process; and
            ``(H) establishes the duration of the agreement based on 
        the time necessary to complete the specified scope of work, 
        which may be 1 or more years.
        ``(3) Gross mismanagement.--The term `gross mismanagement' 
    means a significant, clear, and convincing violation of a compact, 
    funding agreement, or regulatory, or statutory requirements 
    applicable to Federal funds transferred to an Indian tribe by a 
    compact or funding agreement that results in a significant 
    reduction of funds available for the programs, services, functions, 
    or activities (or portions thereof) assumed by an Indian tribe.
        ``(4) Inherent federal functions.--The term `inherent Federal 
    functions' means those Federal functions which cannot legally be 
    delegated to Indian tribes.
        ``(5) Inter-tribal consortium.--The term `inter-tribal 
    consortium' means a coalition of two more separate Indian tribes 
    that join together for the purpose of participating in self-
    governance, including tribal organizations.
        ``(6) Secretary.--The term `Secretary' means the Secretary of 
    Health and Human Services.
        ``(7) Self-governance.--The term `self-governance' means the 
    program of self-governance established under section 502.
        ``(8) Tribal share.--The term `tribal share' means an Indian 
    tribe's portion of all funds and resources that support secretarial 
    programs, services, functions, and activities (or portions thereof) 
    that are not required by the Secretary for performance of inherent 
    Federal functions.
    ``(b) Indian Tribe.--In any case in which an Indian tribe has 
authorized another Indian tribe, an inter-tribal consortium, or a 
tribal organization to plan for or carry out programs, services, 
functions, or activities (or portions thereof) on its behalf under this 
title, the authorized Indian tribe, inter-tribal consortium, or tribal 
organization shall have the rights and responsibilities of the 
authorizing Indian tribe (except as otherwise provided in the 
authorizing resolution or in this title). In such event, the term 
`Indian tribe' as used in this title shall include such other 
authorized Indian tribe, inter-tribal consortium, or tribal 
organization.

``SEC. 502. ESTABLISHMENT.

    ``The Secretary shall establish and carry out a program within the 
Indian Health Service of the Department of Health and Human Services to 
be known as the `Tribal Self-Governance Program' in accordance with 
this title.

``SEC. 503. SELECTION OF PARTICIPATING INDIAN TRIBES.

    ``(a) Continuing Participation.--Each Indian tribe that is 
participating in the Tribal Self-Governance Demonstration Project under 
title III on the date of the enactment of this title may elect to 
participate in self-governance under this title under existing 
authority as reflected in tribal resolution.
    ``(b) Additional Participants.--
        ``(1) In general.--In addition to those Indian tribes 
    participating in self-governance under subsection (a), each year an 
    additional 50 Indian tribes that meet the eligibility criteria 
    specified in subsection (c) shall be entitled to participate in 
    self-governance.
        ``(2) Treatment of certain indian tribes.--
            ``(A) In general.--An Indian tribe that has withdrawn from 
        participation in an inter-tribal consortium or tribal 
        organization, in whole or in part, shall be entitled to 
        participate in self-governance provided the Indian tribe meets 
        the eligibility criteria specified in subsection (c).
            ``(B) Effect of withdrawal.--If an Indian tribe has 
        withdrawn from participation in an inter-tribal consortium or 
        tribal organization, that Indian tribe shall be entitled to its 
        tribal share of funds supporting those programs, services, 
        functions, and activities (or portions thereof) that the Indian 
        tribe will be carrying out under the compact and funding 
        agreement of the Indian tribe.
            ``(C) Participation in self-governance.--In no event shall 
        the withdrawal of an Indian tribe from an inter-tribal 
        consortium or tribal organization affect the eligibility of the 
        inter-tribal consortium or tribal organization to participate 
        in self-governance.
    ``(c) Applicant Pool.--
        ``(1) In general.--The qualified applicant pool for self-
    governance shall consist of each Indian tribe that--
            ``(A) successfully completes the planning phase described 
        in subsection (d);
            ``(B) has requested participation in self-governance by 
        resolution or other official action by the governing body of 
        each Indian tribe to be served; and
            ``(C) has demonstrated, for 3 fiscal years, financial 
        stability and financial management capability.
        ``(2) Criteria for determining financial stability and 
    financial management capacity.--For purposes of this subsection, 
    evidence that, during the 3-year period referred to in paragraph 
    (1)(C), an Indian tribe had no uncorrected significant and material 
    audit exceptions in the required annual audit of the Indian tribe's 
    self-determination contracts or self-governance funding agreements 
    with any Federal agency shall be conclusive evidence of the 
    required stability and capability.
    ``(d) Planning Phase.--Each Indian tribe seeking participation in 
self-governance shall complete a planning phase. The planning phase 
shall be conducted to the satisfaction of the Indian tribe and shall 
include--
        ``(1) legal and budgetary research; and
        ``(2) internal tribal government planning and organizational 
    preparation relating to the administration of health care programs.
    ``(e) Grants.--Subject to the availability of appropriations, any 
Indian tribe meeting the requirements of paragraph (1)(B) and (C) of 
subsection (c) shall be eligible for grants--
        ``(1) to plan for participation in self-governance; and
        ``(2) to negotiate the terms of participation by the Indian 
    tribe or tribal organization in self-governance, as set forth in a 
    compact and a funding agreement.
    ``(f) Receipt of Grant Not Required.--Receipt of a grant under 
subsection (e) shall not be a requirement of participation in self-
governance.

``SEC. 504. COMPACTS.

    ``(a) Compact Required.--The Secretary shall negotiate and enter 
into a written compact with each Indian tribe participating in self-
governance in a manner consistent with the Federal Government's trust 
responsibility, treaty obligations, and the government-to-government 
relationship between Indian tribes and the United States.
    ``(b) Contents.--Each compact required under subsection (a) shall 
set forth the general terms of the government-to-government 
relationship between the Indian tribe and the Secretary, including such 
terms as the parties intend shall control year after year. Such 
compacts may only be amended by mutual agreement of the parties.
    ``(c) Existing Compacts.--An Indian tribe participating in the 
Tribal Self-Governance Demonstration Project under title III on the 
date of the enactment of this title shall have the option at any time 
after the date of the enactment of this title to--
        ``(1) retain the Tribal Self-Governance Demonstration Project 
    compact of that Indian tribe (in whole or in part) to the extent 
    that the provisions of that funding agreement are not directly 
    contrary to any express provision of this title; or
        ``(2) instead of retaining a compact or portion thereof under 
    paragraph (1), negotiate a new compact in a manner consistent with 
    the requirements of this title.
    ``(d) Term and Effective Date.--The effective date of a compact 
shall be the date of the approval and execution by the Indian tribe or 
another date agreed upon by the parties, and shall remain in effect for 
so long as permitted by Federal law or until terminated by mutual 
written agreement, retrocession, or reassumption.

``SEC. 505. FUNDING AGREEMENTS.

    ``(a) Funding Agreement Required.--The Secretary shall negotiate 
and enter into a written funding agreement with each Indian tribe 
participating in self-governance in a manner consistent with the 
Federal Government's trust responsibility, treaty obligations, and the 
government-to-government relationship between Indian tribes and the 
United States.
    ``(b) Contents.--
        ``(1) In general.--Each funding agreement required under 
    subsection (a) shall, as determined by the Indian tribe, authorize 
    the Indian tribe to plan, conduct, consolidate, administer, and 
    receive full tribal share funding, including tribal shares of 
    discretionary Indian Health Service competitive grants (excluding 
    congressionally earmarked competitive grants), for all programs, 
    services, functions, and activities (or portions thereof), that are 
    carried out for the benefit of Indians because of their status as 
    Indians without regard to the agency or office of the Indian Health 
    Service within which the program, service, function, or activity 
    (or portion thereof) is performed.
        ``(2) Inclusion of certain programs, services, functions, and 
    activities.--Such programs, services, functions, or activities (or 
    portions thereof) include all programs, services, functions, 
    activities (or portions thereof), including grants (which may be 
    added to a funding agreement after an award of such grants), with 
    respect to which Indian tribes or Indians are primary or 
    significant beneficiaries, administered by the Department of Health 
    and Human Services through the Indian Health Service and all local, 
    field, service unit, area, regional, and central headquarters or 
    national office functions so administered under the authority of--
            ``(A) the Act of November 2, 1921 (42 Stat. 208; chapter 
        115; 25 U.S.C. 13);
            ``(B) the Act of April 16, 1934 (48 Stat. 596; chapter 147; 
        25 U.S.C. 452 et seq.);
            ``(C) the Act of August 5, 1954 (68 Stat. 674; chapter 
        658);
            ``(D) the Indian Health Care Improvement Act (25 U.S.C. 
        1601 et seq.);
            ``(E) the Indian Alcohol and Substance Abuse Prevention and 
        Treatment Act of 1986 (25 U.S.C. 2401 et seq.);
            ``(F) any other Act of Congress authorizing any agency of 
        the Department of Health and Human Services to administer, 
        carry out, or provide financial assistance to such a program, 
        service, function or activity (or portions thereof) described 
        in this section that is carried out for the benefit of Indians 
        because of their status as Indians; or
            ``(G) any other Act of Congress authorizing such a program, 
        service, function, or activity (or portions thereof) carried 
        out for the benefit of Indians under which appropriations are 
        made available to any agency other than an agency within the 
        Department of Health and Human Services, in any case in which 
        the Secretary administers that program, service, function, or 
        activity (or portion thereof).
    ``(c) Inclusion in Compact or Funding Agreement.--It shall not be a 
requirement that an Indian tribe or Indians be identified in the 
authorizing statute for a program or element of a program to be 
eligible for inclusion in a compact or funding agreement under this 
title.
    ``(d) Funding Agreement Terms.--Each funding agreement under this 
title shall set forth--
        ``(1) terms that generally identify the programs, services, 
    functions, and activities (or portions thereof) to be performed or 
    administered; and
        ``(2) for the items identified in paragraph (1)--
            ``(A) the general budget category assigned;
            ``(B) the funds to be provided, including those funds to be 
        provided on a recurring basis;
            ``(C) the time and method of transfer of the funds;
            ``(D) the responsibilities of the Secretary; and
            ``(E) any other provision with respect to which the Indian 
        tribe and the Secretary agree.
    ``(e) Subsequent Funding Agreements.--Absent notification from an 
Indian tribe that is withdrawing or retroceding the operation of one or 
more programs, services, functions, or activities (or portions thereof) 
identified in a funding agreement, or unless otherwise agreed to by the 
parties, each funding agreement shall remain in full force and effect 
until a subsequent funding agreement is executed, and the terms of the 
subsequent funding agreement shall be retroactive to the end of the 
term of the preceding funding agreement.
    ``(f) Existing Funding Agreements.--Each Indian tribe participating 
in the Tribal Self-Governance Demonstration Project established under 
title III on the date of the enactment of this title shall have the 
option at any time thereafter to--
        ``(1) retain the Tribal Self-Governance Demonstration Project 
    funding agreement of that Indian tribe (in whole or in part) to the 
    extent that the provisions of that funding agreement are not 
    directly contrary to any express provision of this title; or
        ``(2) instead of retaining a funding agreement or portion 
    thereof under paragraph (1), negotiate a new funding agreement in a 
    manner consistent with the requirements of this title.
    ``(g) Stable Base Funding.--At the option of an Indian tribe, a 
funding agreement may provide for a stable base budget specifying the 
recurring funds (including, for purposes of this provision, funds 
available under section 106(a)) to be transferred to such Indian tribe, 
for such period as may be specified in the funding agreement, subject 
to annual adjustment only to reflect changes in congressional 
appropriations by sub-sub activity excluding earmarks.

``SEC. 506. GENERAL PROVISIONS.

    ``(a) Applicability.--The provisions of this section shall apply to 
compacts and funding agreements negotiated under this title and an 
Indian tribe may, at its option, include provisions that reflect such 
requirements in a compact or funding agreement.
    ``(b) Conflicts of Interest.--Indian tribes participating in self-
governance under this title shall ensure that internal measures are in 
place to address conflicts of interest in the administration of self-
governance programs, services, functions, or activities (or portions 
thereof).
    ``(c) Audits.--
        ``(1) Single agency audit act.--The provisions of chapter 75 of 
    title 31, United States Code, requiring a single agency audit 
    report shall apply to funding agreements under this title.
        ``(2) Cost principles.--An Indian tribe shall apply cost 
    principles under the applicable Office of Management and Budget 
    circular, except as modified by section 106 other provisions of 
    law, or by any exemptions to applicable Office of Management and 
    Budget circulars subsequently granted by the Office of Management 
    and Budget. No other audit or accounting standards shall be 
    required by the Secretary. Any claim by the Federal Government 
    against the Indian tribe relating to funds received under a funding 
    agreement based on any audit under this subsection shall be subject 
    to the provisions of section 106(f).
    ``(d) Records.--
        ``(1) In general.--Unless an Indian tribe specifies otherwise 
    in the compact or funding agreement, records of the Indian tribe 
    shall not be considered Federal records for purposes of chapter 5 
    of title 5, United States Code.
        ``(2) Recordkeeping system.--The Indian tribe shall maintain a 
    recordkeeping system, and, after 30 days advance notice, provide 
    the Secretary with reasonable access to such records to enable the 
    Department of Health and Human Services to meet its minimum legal 
    recordkeeping system requirements under sections 3101 through 3106 
    of title 44, United States Code.
    ``(e) Redesign and Consolidation.--An Indian tribe may redesign or 
consolidate programs, services, functions, and activities (or portions 
thereof) included in a funding agreement under section 505 and 
reallocate or redirect funds for such programs, services, functions, 
and activities (or portions thereof) in any manner which the Indian 
tribe deems to be in the best interest of the health and welfare of the 
Indian community being served, only if the redesign or consolidation 
does not have the effect of denying eligibility for services to 
population groups otherwise eligible to be served under applicable 
Federal law.
    ``(f) Retrocession.--An Indian tribe may retrocede, fully or 
partially, to the Secretary programs, services, functions, or 
activities (or portions thereof) included in the compact or funding 
agreement. Unless the Indian tribe rescinds the request for 
retrocession, such retrocession will become effective within the 
timeframe specified by the parties in the compact or funding agreement. 
In the absence of such a specification, such retrocession shall become 
effective on--
        ``(1) the earlier of--
            ``(A) 1 year after the date of submission of such request; 
        or
            ``(B) the date on which the funding agreement expires; or
        ``(2) such date as may be mutually agreed upon by the Secretary 
    and the Indian tribe.
    ``(g) Withdrawal.--
        ``(1) Process.--
            ``(A) In general.--An Indian tribe may fully or partially 
        withdraw from a participating inter-tribal consortium or tribal 
        organization its share of any program, function, service, or 
        activity (or portions thereof) included in a compact or funding 
        agreement.
            ``(B) Effective date.--The withdrawal referred to in 
        subparagraph (A) shall become effective within the timeframe 
        specified in the resolution which authorizes transfer to the 
        participating tribal organization or inter-tribal consortium. 
        In the absence of a specific timeframe set forth in the 
        resolution, such withdrawal shall become effective on--
                ``(i) the earlier of--

                    ``(I) 1 year after the date of submission of such 
                request; or
                    ``(II) the date on which the funding agreement 
                expires; or

                ``(ii) such date as may be mutually agreed upon by the 
            Secretary, the withdrawing Indian tribe, and the 
            participating tribal organization or inter-tribal 
            consortium that has signed the compact or funding agreement 
            on behalf of the withdrawing Indian tribe, inter-tribal 
            consortium, or tribal organization.
        ``(2) Distribution of funds.--When an Indian tribe or tribal 
    organization eligible to enter into a self-determination contract 
    under title I or a compact or funding agreement under this title 
    fully or partially withdraws from a participating inter-tribal 
    consortium or tribal organization--
            ``(A) the withdrawing Indian tribe or tribal organization 
        shall be entitled to its tribal share of funds supporting those 
        programs, services, functions, or activities (or portions 
        thereof) that the Indian tribe will be carrying out under its 
        own self-determination contract or compact and funding 
        agreement (calculated on the same basis as the funds were 
        initially allocated in the funding agreement of the inter-
        tribal consortium or tribal organization); and
            ``(B) the funds referred to in subparagraph (A) shall be 
        transferred from the funding agreement of the inter-tribal 
        consortium or tribal organization, on the condition that the 
        provisions of sections 102 and 105(i), as appropriate, shall 
        apply to that withdrawing Indian tribe.
        ``(3) Regaining mature contract status.--If an Indian tribe 
    elects to operate all or some programs, services, functions, or 
    activities (or portions thereof) carried out under a compact or 
    funding agreement under this title through a self-determination 
    contract under title I, at the option of the Indian tribe, the 
    resulting self-determination contract shall be a mature self-
    determination contract.
    ``(h) Nonduplication.--For the period for which, and to the extent 
to which, funding is provided under this title or under the compact or 
funding agreement, the Indian tribe shall not be entitled to contract 
with the Secretary for such funds under section 102, except that such 
Indian tribe shall be eligible for new programs on the same basis as 
other Indian tribes.

``SEC. 507. PROVISIONS RELATING TO THE SECRETARY.

    ``(a) Mandatory Provisions.--
        ``(1) Health status reports.--Compacts or funding agreements 
    negotiated between the Secretary and an Indian tribe shall include 
    a provision that requires the Indian tribe to report on health 
    status and service delivery--
            ``(A) to the extent such data is not otherwise available to 
        the Secretary and specific funds for this purpose are provided 
        by the Secretary under the funding agreement; and
            ``(B) if such reporting shall impose minimal burdens on the 
        participating Indian tribe and such requirements are 
        promulgated under section 517.
        ``(2) Reassumption.--
            ``(A) In general.--Compacts or funding agreements 
        negotiated between the Secretary and an Indian tribe shall 
        include a provision authorizing the Secretary to reassume 
        operation of a program, service, function, or activity (or 
        portions thereof) and associated funding if there is a specific 
        finding relative to that program, service, function, or 
        activity (or portion thereof) of--
                ``(i) imminent endangerment of the public health caused 
            by an act or omission of the Indian tribe, and the imminent 
            endangerment arises out of a failure to carry out the 
            compact or funding agreement; or
                ``(ii) gross mismanagement with respect to funds 
            transferred to a tribe by a compact or funding agreement, 
            as determined by the Secretary in consultation with the 
            Inspector General, as appropriate.
            ``(B) Prohibition.--The Secretary shall not reassume 
        operation of a program, service, function, or activity (or 
        portions thereof) unless--
                ``(i) the Secretary has first provided written notice 
            and a hearing on the record to the Indian tribe; and
                ``(ii) the Indian tribe has not taken corrective action 
            to remedy the imminent endangerment to public health or 
            gross mismanagement.
            ``(C) Exception.--
                ``(i) In general.--Notwithstanding subparagraph (B), 
            the Secretary may, upon written notification to the Indian 
            tribe, immediately reassume operation of a program, 
            service, function, or activity (or portion thereof) if--

                    ``(I) the Secretary makes a finding of imminent 
                substantial and irreparable endangerment of the public 
                health caused by an act or omission of the Indian 
                tribe; and
                    ``(II) the endangerment arises out of a failure to 
                carry out the compact or funding agreement.

                ``(ii) Reassumption.--If the Secretary reassumes 
            operation of a program, service, function, or activity (or 
            portion thereof) under this subparagraph, the Secretary 
            shall provide the Indian tribe with a hearing on the record 
            not later than 10 days after such reassumption.
            ``(D) Hearings.--In any hearing or appeal involving a 
        decision to reassume operation of a program, service, function, 
        or activity (or portion thereof), the Secretary shall have the 
        burden of proof of demonstrating by clear and convincing 
        evidence the validity of the grounds for the reassumption.
    ``(b) Final Offer.--In the event the Secretary and a participating 
Indian tribe are unable to agree, in whole or in part, on the terms of 
a compact or funding agreement (including funding levels), the Indian 
tribe may submit a final offer to the Secretary. Not more than 45 days 
after such submission, or within a longer time agreed upon by the 
Indian tribe, the Secretary shall review and make a determination with 
respect to such offer. In the absence of a timely rejection of the 
offer, in whole or in part, made in compliance with subsection (c), the 
offer shall be deemed agreed to by the Secretary.
    ``(c) Rejection of Final Offers.--
        ``(1) In general.--If the Secretary rejects an offer made under 
    subsection (b) (or one or more provisions or funding levels in such 
    offer), the Secretary shall provide--
            ``(A) a timely written notification to the Indian tribe 
        that contains a specific finding that clearly demonstrates, or 
        that is supported by a controlling legal authority, that--
                ``(i) the amount of funds proposed in the final offer 
            exceeds the applicable funding level to which the Indian 
            tribe is entitled under this title;
                ``(ii) the program, function, service, or activity (or 
            portion thereof) that is the subject of the final offer is 
            an inherent Federal function that cannot legally be 
            delegated to an Indian tribe;
                ``(iii) the Indian tribe cannot carry out the program, 
            function, service, or activity (or portion thereof) in a 
            manner that would not result in significant danger or risk 
            to the public health; or
                ``(iv) the Indian tribe is not eligible to participate 
            in self-governance under section 503;
            ``(B) technical assistance to overcome the objections 
        stated in the notification required by subparagraph (A);
            ``(C) the Indian tribe with a hearing on the record with 
        the right to engage in full discovery relevant to any issue 
        raised in the matter and the opportunity for appeal on the 
        objections raised, except that the Indian tribe may, in lieu of 
        filing such appeal, directly proceed to initiate an action in a 
        Federal district court pursuant to section 110(a); and
            ``(D) the Indian tribe with the option of entering into the 
        severable portions of a final proposed compact or funding 
        agreement, or provision thereof, (including a lesser funding 
        amount, if any), that the Secretary did not reject, subject to 
        any additional alterations necessary to conform the compact or 
        funding agreement to the severed provisions.
        ``(2) Effect of exercising certain option.--If an Indian tribe 
    exercises the option specified in paragraph (1)(D), that Indian 
    tribe shall retain the right to appeal the Secretary's rejection 
    under this section, and subparagraphs (A), (B), and (C) of that 
    paragraph shall only apply to that portion of the proposed final 
    compact, funding agreement, or provision thereof that was rejected 
    by the Secretary.
    ``(d) Burden of Proof.--With respect to any hearing or appeal or 
civil action conducted pursuant to this section, the Secretary shall 
have the burden of demonstrating by clear and convincing evidence the 
validity of the grounds for rejecting the offer (or a provision 
thereof) made under subsection (b).
    ``(e) Good Faith.--In the negotiation of compacts and funding 
agreements the Secretary shall at all times negotiate in good faith to 
maximize implementation of the self-governance policy. The Secretary 
shall carry out this title in a manner that maximizes the policy of 
tribal self-governance, in a manner consistent with the purposes 
specified in section 3 of the Tribal Self-Governance Amendments of 
2000.
    ``(f) Savings.--To the extent that programs, functions, services, 
or activities (or portions thereof) carried out by Indian tribes under 
this title reduce the administrative or other responsibilities of the 
Secretary with respect to the operation of Indian programs and result 
in savings that have not otherwise been included in the amount of 
tribal shares and other funds determined under section 508(c), the 
Secretary shall make such savings available to the Indian tribes, 
inter-tribal consortia, or tribal organizations for the provision of 
additional services to program beneficiaries in a manner equitable to 
directly served, contracted, and compacted programs.
    ``(g) Trust Responsibility.--The Secretary is prohibited from 
waiving, modifying, or diminishing in any way the trust responsibility 
of the United States with respect to Indian tribes and individual 
Indians that exists under treaties, Executive orders, other laws, or 
court decisions.
    ``(h) Decisionmaker.--A decision that constitutes final agency 
action and relates to an appeal within the Department of Health and 
Human Services conducted under subsection (c) shall be made either--
        ``(1) by an official of the Department who holds a position at 
    a higher organizational level within the Department than the level 
    of the departmental agency in which the decision that is the 
    subject of the appeal was made; or
        ``(2) by an administrative judge.

``SEC. 508. TRANSFER OF FUNDS.

    ``(a) In General.--Pursuant to the terms of any compact or funding 
agreement entered into under this title, the Secretary shall transfer 
to the Indian tribe all funds provided for in the funding agreement, 
pursuant to subsection (c), and provide funding for periods covered by 
joint resolution adopted by Congress making continuing appropriations, 
to the extent permitted by such resolutions. In any instance where a 
funding agreement requires an annual transfer of funding to be made at 
the beginning of a fiscal year, or requires semiannual or other 
periodic transfers of funding to be made commencing at the beginning of 
a fiscal year, the first such transfer shall be made not later than 10 
days after the apportionment of such funds by the Office of Management 
and Budget to the Department, unless the funding agreement provides 
otherwise.
    ``(b) Multiyear Funding.--The Secretary is authorized to employ, 
upon tribal request, multiyear funding agreements. References in this 
title to funding agreements shall include such multiyear funding 
agreements.
    ``(c) Amount of Funding.--The Secretary shall provide funds under a 
funding agreement under this title in an amount equal to the amount 
that the Indian tribe would have been entitled to receive under self-
determination contracts under this Act, including amounts for direct 
program costs specified under section 106(a)(1) and amounts for 
contract support costs specified under section 106(a) (2), (3), (5), 
and (6), including any funds that are specifically or functionally 
related to the provision by the Secretary of services and benefits to 
the Indian tribe or its members, all without regard to the 
organizational level within the Department where such functions are 
carried out.
    ``(d) Prohibitions.--
        ``(1) In general.--Except as provided in paragraph (2), the 
    Secretary is expressly prohibited from--
            ``(A) failing or refusing to transfer to an Indian tribe 
        its full share of any central, headquarters, regional, area, or 
        service unit office or other funds due under this Act, except 
        as required by Federal law;
            ``(B) withholding portions of such funds for transfer over 
        a period of years; and
            ``(C) reducing the amount of funds required under this 
        Act--
                ``(i) to make funding available for self-governance 
            monitoring or administration by the Secretary;
                ``(ii) in subsequent years, except pursuant to--

                    ``(I) a reduction in appropriations from the 
                previous fiscal year for the program or function to be 
                included in a compact or funding agreement;
                    ``(II) a congressional directive in legislation or 
                accompanying report;
                    ``(III) a tribal authorization;
                    ``(IV) a change in the amount of pass-through funds 
                subject to the terms of the funding agreement; or
                    ``(V) completion of a project, activity, or program 
                for which such funds were provided;

                ``(iii) to pay for Federal functions, including Federal 
            pay costs, Federal employee retirement benefits, automated 
            data processing, technical assistance, and monitoring of 
            activities under this Act; or
                ``(iv) to pay for costs of Federal personnel displaced 
            by self-determination contracts under this Act or self-
            governance;
        ``(2) Exception.--The funds described in paragraph (1)(C) may 
    be increased by the Secretary if necessary to carry out this Act or 
    as provided in section 105(c)(2).
    ``(e) Other Resources.--In the event an Indian tribe elects to 
carry out a compact or funding agreement with the use of Federal 
personnel, Federal supplies (including supplies available from Federal 
warehouse facilities), Federal supply sources (including lodging, 
airline transportation, and other means of transportation including the 
use of interagency motor pool vehicles) or other Federal resources 
(including supplies, services, and resources available to the Secretary 
under any procurement contracts in which the Department is eligible to 
participate), the Secretary shall acquire and transfer such personnel, 
supplies, or resources to the Indian tribe.
    ``(f) Reimbursement to Indian Health Service.--With respect to 
functions transferred by the Indian Health Service to an Indian tribe, 
the Indian Health Service shall provide goods and services to the 
Indian tribe, on a reimbursable basis, including payment in advance 
with subsequent adjustment. The reimbursements received from those 
goods and services, along with the funds received from the Indian tribe 
pursuant to this title, may be credited to the same or subsequent 
appropriation account which provided the funding, such amounts to 
remain available until expended.
    ``(g) Prompt Payment Act.--Chapter 39 of title 31, United States 
Code, shall apply to the transfer of funds due under a compact or 
funding agreement authorized under this title.
    ``(h) Interest or Other Income on Transfers.--An Indian tribe is 
entitled to retain interest earned on any funds paid under a compact or 
funding agreement to carry out governmental or health purposes and such 
interest shall not diminish the amount of funds the Indian tribe is 
authorized to receive under its funding agreement in the year the 
interest is earned or in any subsequent fiscal year. Funds transferred 
under this title shall be managed using the prudent investment 
standard.
    ``(i) Carryover of Funds.--All funds paid to an Indian tribe in 
accordance with a compact or funding agreement shall remain available 
until expended. In the event that an Indian tribe elects to carry over 
funding from 1 year to the next, such carryover shall not diminish the 
amount of funds the Indian tribe is authorized to receive under its 
funding agreement in that or any subsequent fiscal year.
    ``(j) Program Income.--All Medicare, Medicaid, or other program 
income earned by an Indian tribe shall be treated as supplemental 
funding to that negotiated in the funding agreement. The Indian tribe 
may retain all such income and expend such funds in the current year or 
in future years except to the extent that the Indian Health Care 
Improvement Act (25 U.S.C. 1601 et seq.) provides otherwise for 
Medicare and Medicaid receipts. Such funds shall not result in any 
offset or reduction in the amount of funds the Indian tribe is 
authorized to receive under its funding agreement in the year the 
program income is received or for any subsequent fiscal year.
    ``(k) Limitation of Costs.--An Indian tribe shall not be obligated 
to continue performance that requires an expenditure of funds in excess 
of the amount of funds transferred under a compact or funding 
agreement. If at any time the Indian tribe has reason to believe that 
the total amount provided for a specific activity in the compact or 
funding agreement is insufficient the Indian tribe shall provide 
reasonable notice of such insufficiency to the Secretary. If the 
Secretary does not increase the amount of funds transferred under the 
funding agreement, the Indian tribe may suspend performance of the 
activity until such time as additional funds are transferred.

``SEC. 509. CONSTRUCTION PROJECTS.

    ``(a) In General.--Indian tribes participating in tribal self-
governance may carry out construction projects under this title if they 
elect to assume all Federal responsibilities under the National 
Environmental Policy Act of 1969 (42 U.S.C. 4321 et seq.), the National 
Historic Preservation Act (16 U.S.C. 470 et seq.), and related 
provisions of law that would apply if the Secretary were to undertake a 
construction project, by adopting a resolution--
        ``(1) designating a certifying officer to represent the Indian 
    tribe and to assume the status of a responsible Federal official 
    under such laws; and
        ``(2) accepting the jurisdiction of the Federal court for the 
    purpose of enforcement of the responsibilities of the responsible 
    Federal official under such environmental laws.
    ``(b) Negotiations.--Construction project proposals shall be 
negotiated pursuant to the statutory process in section 105(m) and 
resulting construction project agreements shall be incorporated into 
funding agreements as addenda.
    ``(c) Codes and Standards.--The Indian tribe and the Secretary 
shall agree upon and specify appropriate building codes and 
architectural and engineering standards (including health and safety) 
which shall be in conformity with nationally recognized standards for 
comparable projects.
    ``(d) Responsibility for Completion.--The Indian tribe shall assume 
responsibility for the successful completion of the construction 
project in accordance with the negotiated construction project 
agreement.
    ``(e) Funding.--Funding for construction projects carried out under 
this title shall be included in funding agreements as annual advance 
payments, with semiannual payments at the option of the Indian tribe. 
Annual advance and semiannual payment amounts shall be determined based 
on mutually agreeable project schedules reflecting work to be 
accomplished within the advance payment period, work accomplished and 
funds expended in previous payment periods, and the total prior 
payments. The Secretary shall include associated project contingency 
funds with each advance payment installment. The Indian tribe shall be 
responsible for the management of the contingency funds included in 
funding agreements.
    ``(f) Approval.--The Secretary shall have at least one opportunity 
to approve project planning and design documents prepared by the Indian 
tribe in advance of construction of the facilities specified in the 
scope of work for each negotiated construction project agreement or 
amendment thereof which results in a significant change in the original 
scope of work. The Indian tribe shall provide the Secretary with 
project progress and financial reports not less than semiannually. The 
Secretary may conduct onsite project oversight visits semiannually or 
on an alternate schedule agreed to by the Secretary and the Indian 
tribe.
    ``(g) Wages.--All laborers and mechanics employed by contractors 
and subcontractors (excluding tribes and tribal organizations) in the 
construction, alteration, or repair, including painting or decorating 
of a building or other facilities in connection with construction 
projects funded by the United States under this Act shall be paid wages 
at not less than those prevailing wages on similar construction in the 
locality as determined by the Secretary of Labor in accordance with the 
Davis-Bacon Act of March 3, 1931 (46 Stat. 1494). With respect to 
construction alteration, or repair work to which the Act of March 3, 
1931, is applicable under this section, the Secretary of Labor shall 
have the authority and functions set forth in the Reorganization Plan 
numbered 14, of 1950, and section 2 of the Act of June 13, 1934 (48 
Stat. 948).
    ``(h) Application of Other Laws.--Unless otherwise agreed to by the 
Indian tribe, no provision of the Office of Federal Procurement Policy 
Act, the Federal Acquisition Regulations issued pursuant thereto, or 
any other law or regulation pertaining to Federal procurement 
(including Executive orders) shall apply to any construction project 
conducted under this title.

``SEC. 510. FEDERAL PROCUREMENT LAWS AND REGULATIONS.

    ``Regarding construction programs or projects, the Secretary and 
Indian tribes may negotiate for the inclusion of specific provisions of 
the Office of Federal Procurement and Policy Act (41 U.S.C. 401 et 
seq.) and Federal acquisition regulations in any funding agreement 
entered into under this part. Absent a negotiated agreement, such 
provisions and regulatory requirements shall not apply.

``SEC. 511. CIVIL ACTIONS.

    ``(a) Contract Defined.--For the purposes of section 110, the term 
`contract' shall include compacts and funding agreements entered into 
under this title.
    ``(b) Applicability of Certain Laws.--Section 2103 of the Revised 
Statutes (25 U.S.C. 81) and section 16 of the Act of June 18, 1934 (48 
Stat. 987; chapter 576; 25 U.S.C. 476), shall not apply to attorney and 
other professional contracts entered into by Indian tribes 
participating in self-governance under this title.
    ``(c) References.--All references in this Act to section 1 of the 
Act of June 26, 1936 (49 Stat. 1967; chapter 831) are hereby deemed to 
include the first section of the Act of July 3, 1952 (66 Stat. 323; 
chapter 549; 25 U.S.C. 82a).

``SEC. 512. FACILITATION.

    ``(a) Secretarial Interpretation.--Except as otherwise provided by 
law, the Secretary shall interpret all Federal laws, Executive orders, 
and regulations in a manner that will facilitate--
        ``(1) the inclusion of programs, services, functions, and 
    activities (or portions thereof) and funds associated therewith, in 
    the agreements entered into under this section;
        ``(2) the implementation of compacts and funding agreements 
    entered into under this title; and
        ``(3) the achievement of tribal health goals and objectives.
    ``(b) Regulation Waiver.--
        ``(1) In general.--An Indian tribe may submit a written request 
    to waive application of a regulation promulgated under section 517 
    or the authorities specified in section 505(b) for a compact or 
    funding agreement entered into with the Indian Health Service under 
    this title, to the Secretary identifying the applicable Federal 
    regulation sought to be waived and the basis for the request.
        ``(2) Approval.--Not later than 90 days after receipt by the 
    Secretary of a written request by an Indian tribe to waive 
    application of a regulation for a compact or funding agreement 
    entered into under this title, the Secretary shall either approve 
    or deny the requested waiver in writing. A denial may be made only 
    upon a specific finding by the Secretary that identified language 
    in the regulation may not be waived because such waiver is 
    prohibited by Federal law. A failure to approve or deny a waiver 
    request not later than 90 days after receipt shall be deemed an 
    approval of such request. The Secretary's decision shall be final 
    for the Department.
    ``(c) Access to Federal Property.--In connection with any compact 
or funding agreement executed pursuant to this title or an agreement 
negotiated under the Tribal Self-Governance Demonstration Project 
established under title III, as in effect before the enactment of the 
Tribal Self-Governance Amendments of 2000, upon the request of an 
Indian tribe, the Secretary--
        ``(1) shall permit an Indian tribe to use existing school 
    buildings, hospitals, and other facilities and all equipment 
    therein or appertaining thereto and other personal property owned 
    by the Government within the Secretary's jurisdiction under such 
    terms and conditions as may be agreed upon by the Secretary and the 
    Indian tribe for their use and maintenance;
        ``(2) may donate to an Indian tribe title to any personal or 
    real property found to be excess to the needs of any agency of the 
    Department, or the General Services Administration, except that--
            ``(A) subject to the provisions of subparagraph (B), title 
        to property and equipment furnished by the Federal Government 
        for use in the performance of the compact or funding agreement 
        or purchased with funds under any compact or funding agreement 
        shall, unless otherwise requested by the Indian tribe, vest in 
        the appropriate Indian tribe;
            ``(B) if property described in subparagraph (A) has a value 
        in excess of $5,000 at the time of retrocession, withdrawal, or 
        reassumption, at the option of the Secretary upon the 
        retrocession, withdrawal, or reassumption, title to such 
        property and equipment shall revert to the Department of Health 
        and Human Services; and
            ``(C) all property referred to in subparagraph (A) shall 
        remain eligible for replacement, maintenance, and improvement 
        on the same basis as if title to such property were vested in 
        the United States; and
        ``(3) shall acquire excess or surplus Government personal or 
    real property for donation to an Indian tribe if the Secretary 
    determines the property is appropriate for use by the Indian tribe 
    for any purpose for which a compact or funding agreement is 
    authorized under this title.
    ``(d) Matching or Cost-Participation Requirement.--All funds 
provided under compacts, funding agreements, or grants made pursuant to 
this Act, shall be treated as non-Federal funds for purposes of meeting 
matching or cost participation requirements under any other Federal or 
non-Federal program.
    ``(e) State Facilitation.--States are hereby authorized and 
encouraged to enact legislation, and to enter into agreements with 
Indian tribes to facilitate and supplement the initiatives, programs, 
and policies authorized by this title and other Federal laws benefiting 
Indians and Indian tribes.
    ``(f) Rules of Construction.--Each provision of this title and each 
provision of a compact or funding agreement shall be liberally 
construed for the benefit of the Indian tribe participating in self-
governance and any ambiguity shall be resolved in favor of the Indian 
tribe.

``SEC. 513. BUDGET REQUEST.

    ``(a) Requirement of Annual Budget Request.--
        ``(1) In general.--The President shall identify in the annual 
    budget request submitted to Congress under section 1105 of title 
    31, United States Code, all funds necessary to fully fund all 
    funding agreements authorized under this title, including funds 
    specifically identified to fund tribal base budgets. All funds so 
    appropriated shall be apportioned to the Indian Health Service. 
    Such funds shall be provided to the Office of Tribal Self-
    Governance which shall be responsible for distribution of all funds 
    provided under section 505.
        ``(2) Rule of construction.--Nothing in this subsection shall 
    be construed to authorize the Indian Health Service to reduce the 
    amount of funds that a self-governance tribe is otherwise entitled 
    to receive under its funding agreement or other applicable law, 
    whether or not such funds are apportioned to the Office of Tribal 
    Self-Governance under this section.
    ``(b) Present Funding; Shortfalls.--In such budget request, the 
President shall identify the level of need presently funded and any 
shortfall in funding (including direct program and contract support 
costs) for each Indian tribe, either directly by the Secretary of 
Health and Human Services, under self-determination contracts, or under 
compacts and funding agreements authorized under this title.

``SEC. 514. REPORTS.

    ``(a) Annual Report.--
        ``(1) In general.--Not later than January 1 of each year after 
    the date of the enactment of the Tribal Self-Governance Amendments 
    of 2000, the Secretary shall submit to the Committee on Indian 
    Affairs of the Senate and the Committee on Resources of the House 
    of Representatives a written report regarding the administration of 
    this title.
        ``(2) Analysis.--The report under paragraph (1) shall include a 
    detailed analysis of the level of need being presently funded or 
    unfunded for each Indian tribe, either directly by the Secretary, 
    under self-determination contracts under title I, or under compacts 
    and funding agreements authorized under this Act. In compiling 
    reports pursuant to this section, the Secretary may not impose any 
    reporting requirements on participating Indian tribes or tribal 
    organizations, not otherwise provided in this Act.
    ``(b) Contents.--The report under subsection (a) shall--
        ``(1) be compiled from information contained in funding 
    agreements, annual audit reports, and data of the Secretary 
    regarding the disposition of Federal funds; and
        ``(2) identify--
            ``(A) the relative costs and benefits of self-governance;
            ``(B) with particularity, all funds that are specifically 
        or functionally related to the provision by the Secretary of 
        services and benefits to self-governance Indian tribes and 
        their members;
            ``(C) the funds transferred to each self-governance Indian 
        tribe and the corresponding reduction in the Federal 
        bureaucracy;
            ``(D) the funding formula for individual tribal shares of 
        all headquarters funds, together with the comments of affected 
        Indian tribes or tribal organizations, developed under 
        subsection (c); and
            ``(E) amounts expended in the preceding fiscal year to 
        carry out inherent Federal functions, including an 
        identification of those functions by type and location;
        ``(3) contain a description of the method or methods (or any 
    revisions thereof) used to determine the individual tribal share of 
    funds controlled by all components of the Indian Health Service 
    (including funds assessed by any other Federal agency) for 
    inclusion in self-governance compacts or funding agreements;
        ``(4) before being submitted to Congress, be distributed to the 
    Indian tribes for comment (with a comment period of no less than 30 
    days, beginning on the date of distribution); and
        ``(5) include the separate views and comments of the Indian 
    tribes or tribal organizations.
    ``(c) Report on Fund Distribution Method.--Not later than 180 days 
after the date of the enactment of the Tribal Self-Governance 
Amendments of 2000, the Secretary shall, after consultation with Indian 
tribes, submit a written report to the Committee on Resources of the 
House of Representatives and the Committee on Indian Affairs of the 
Senate that describes the method or methods used to determine the 
individual tribal share of funds controlled by all components of the 
Indian Health Service (including funds assessed by any other Federal 
agency) for inclusion in self-governance compacts or funding 
agreements.

``SEC. 515. DISCLAIMERS.

    ``(a) No Funding Reduction.--Nothing in this title shall be 
construed to limit or reduce in any way the funding for any program, 
project, or activity serving an Indian tribe under this or other 
applicable Federal law. Any Indian tribe that alleges that a compact or 
funding agreement is in violation of this section may apply the 
provisions of section 110.
    ``(b) Federal Trust and Treaty Responsibilities.--Nothing in this 
Act shall be construed to diminish in any way the trust responsibility 
of the United States to Indian tribes and individual Indians that 
exists under treaties, Executive orders, or other laws and court 
decisions.
    ``(c) Obligations of the United States.--The Indian Health Service 
under this Act shall neither bill nor charge those Indians who may have 
the economic means to pay for services, nor require any Indian tribe to 
do so.

``SEC. 516. APPLICATION OF OTHER SECTIONS OF THE ACT.

    ``(a) Mandatory Application.--All provisions of sections 5(b), 6, 
7, 102(c) and (d), 104, 105(k) and (l), 106(a) through (k), and 111 of 
this Act and section 314 of Public Law 101-512 (coverage under chapter 
171 of title 28, United States Code, commonly known as the `Federal 
Tort Claims Act'), to the extent not in conflict with this title, shall 
apply to compacts and funding agreements authorized by this title.
    ``(b) Discretionary Application.--At the request of a participating 
Indian tribe, any other provision of title I, to the extent such 
provision is not in conflict with this title, shall be made a part of a 
funding agreement or compact entered into under this title. The 
Secretary is obligated to include such provision at the option of the 
participating Indian tribe or tribes. If such provision is incorporated 
it shall have the same force and effect as if it were set out in full 
in this title. In the event an Indian tribe requests such incorporation 
at the negotiation stage of a compact or funding agreement, such 
incorporation shall be deemed effective immediately and shall control 
the negotiation and resulting compact and funding agreement.

``SEC. 517. REGULATIONS.

    ``(a) In General.--
        ``(1) Promulgation.--Not later than 90 days after the date of 
    the enactment of the Tribal Self-Governance Amendments of 2000, the 
    Secretary shall initiate procedures under subchapter III of chapter 
    5 of title 5, United States Code, to negotiate and promulgate such 
    regulations as are necessary to carry out this title.
        ``(2) Publication of proposed regulations.--Proposed 
    regulations to implement this title shall be published in the 
    Federal Register by the Secretary no later than 1 year after the 
    date of the enactment of the Tribal Self-Governance Amendments of 
    2000.
        ``(3) Expiration of authority.--The authority to promulgate 
    regulations under paragraph (1) shall expire 21 months after the 
    date of the enactment of the Tribal Self-Governance Amendments of 
    2000.
    ``(b) Committee.--
        ``(1) In general.--A negotiated rulemaking committee 
    established pursuant to section 565 of title 5, United States Code, 
    to carry out this section shall have as its members only Federal 
    and tribal government representatives, a majority of whom shall be 
    nominated by and be representatives of Indian tribes with funding 
    agreements under this Act.
        ``(2) Requirements.--The committee shall confer with, and 
    accommodate participation by, representatives of Indian tribes, 
    inter-tribal consortia, tribal organizations, and individual tribal 
    members.
    ``(c) Adaptation of Procedures.--The Secretary shall adapt the 
negotiated rulemaking procedures to the unique context of self-
governance and the government-to-government relationship between the 
United States and Indian tribes.
    ``(d) Effect.--The lack of promulgated regulations shall not limit 
the effect of this title.
    ``(e) Effect of Circulars, Policies, Manuals, Guidances, and 
Rules.--Unless expressly agreed to by the participating Indian tribe in 
the compact or funding agreement, the participating Indian tribe shall 
not be subject to any agency circular, policy, manual, guidance, or 
rule adopted by the Indian Health Service, except for the eligibility 
provisions of section 105(g) and regulations promulgated under section 
517.

``SEC. 518. APPEALS.

    ``In any appeal (including civil actions) involving decisions made 
by the Secretary under this title, the Secretary shall have the burden 
of proof of demonstrating by clear and convincing evidence--
        ``(1) the validity of the grounds for the decision made; and
        ``(2) that the decision is fully consistent with provisions and 
    policies of this title.

``SEC. 519. AUTHORIZATION OF APPROPRIATIONS.

    ``(a) In General.--There are authorized to be appropriated such 
sums as may be necessary to carry out this title.
    ``(b) Availability of Appropriations.--Notwithstanding any other 
provision of this Act, the provision of funds under this Act shall be 
subject to the availability of appropriations and the Secretary is not 
required to reduce funding for programs, projects, or activities 
serving a tribe in order to make funds available to another tribe or 
tribal organization under this Act.''.

SEC. 5. TRIBAL SELF-GOVERNANCE DEPARTMENT.

    The Indian Self-Determination and Education Assistance Act (25 
U.S.C. 450 et seq.) is amended by adding at the end the following:

  ``TITLE VI--TRIBAL SELF-GOVERNANCE--DEPARTMENT OF HEALTH AND HUMAN 
                                SERVICES

``SEC. 601. DEFINITIONS.

    ``(a) In General.--In this title, the Secretary may apply the 
definitions contained in title V.
    ``(b) Other Definitions.--In this title:
        ``(1) Agency.--The term `agency' means any agency or other 
    organizational unit of the Department of Health and Human Services, 
    other than the Indian Health Service.
        ``(2) Secretary.--The term `Secretary' means the Secretary of 
    Health and Human Services.

``SEC. 602. DEMONSTRATION PROJECT FEASIBILITY.

    ``(a) Study.--The Secretary shall conduct a study to determine the 
feasibility of a tribal self-governance demonstration project for 
appropriate programs, services, functions, and activities (or portions 
thereof) of the agency.
    ``(b) Considerations.--In conducting the study, the Secretary shall 
consider--
        ``(1) the probable effects on specific programs and program 
    beneficiaries of such a demonstration project;
        ``(2) statutory, regulatory, or other impediments to 
    implementation of such a demonstration project;
        ``(3) strategies for implementing such a demonstration project;
        ``(4) probable costs or savings associated with such a 
    demonstration project;
        ``(5) methods to assure quality and accountability in such a 
    demonstration project; and
        ``(6) such other issues that may be determined by the Secretary 
    or developed through consultation pursuant to section 603.
    ``(c) Report.--Not later than 18 months after the date of the 
enactment of this title, the Secretary shall submit a report to the 
Committee on Indian Affairs of the Senate and the Committee on 
Resources of the House of Representatives. The report shall contain--
        ``(1) the results of the study under this section;
        ``(2) a list of programs, services, functions, and activities 
    (or portions thereof) within each agency with respect to which it 
    would be feasible to include in a tribal self-governance 
    demonstration project;
        ``(3) a list of programs, services, functions, and activities 
    (or portions thereof) included in the list provided pursuant to 
    paragraph (2) that could be included in a tribal self-governance 
    demonstration project without amending statutes, or waiving 
    regulations that the Secretary may not waive;
        ``(4) a list of legislative actions required in order to 
    include those programs, services, functions, and activities (or 
    portions thereof) included in the list provided pursuant to 
    paragraph (2) but not included in the list provided pursuant to 
    paragraph (3) in a tribal self-governance demonstration project; 
    and
        ``(5) any separate views of tribes and other entities consulted 
    pursuant to section 603 related to the information provided 
    pursuant to paragraphs (1) through (4).

``SEC. 603. CONSULTATION.

    ``(a) Study Protocol.--
        ``(1) Consultation with indian tribes.--The Secretary shall 
    consult with Indian tribes to determine a protocol for consultation 
    under subsection (b) prior to consultation under such subsection 
    with the other entities described in such subsection.
        ``(2) Requirements for protocol.--The protocol shall require, 
    at a minimum, that--
            ``(A) the government-to-government relationship with Indian 
        tribes forms the basis for the consultation process;
            ``(B) the Indian tribes and the Secretary jointly conduct 
        the consultations required by this section; and
            ``(C) the consultation process allows for separate and 
        direct recommendations from the Indian tribes and other 
        entities described in subsection (b).
    ``(b) Conducting Study.--In conducting the study under this title, 
the Secretary shall consult with Indian tribes, States, counties, 
municipalities, program beneficiaries, and interested public interest 
groups, and may consult with other entities as appropriate.

``SEC. 604. AUTHORIZATION OF APPROPRIATIONS.

    ``There are authorized to be appropriated such sums as may be 
necessary to carry out this title. Such sums shall remain available 
until expended.''.

SEC. 6. AMENDMENTS CLARIFYING CIVIL PROCEEDINGS.

    Section 102(e)(1) of the Indian Self-Determination and Education 
Assistance Act (25 U.S.C. 450f(e)(1)) is amended by inserting after 
``subsection (b)(3)'' the following: ``or any civil action conducted 
pursuant to section 110(a)''.

SEC. 7. SPEEDY ACQUISITION OF GOODS, SERVICES, OR SUPPLIES.

    Section 105(k) of the Indian Self-Determination and Education 
Assistance Act (25 U.S.C. 450j(k)) is amended--
        (1) by striking ``deemed an executive agency'' and inserting 
    ``deemed an executive agency and part of the Indian Health 
    Service''; and
        (2) by adding at the end the following: ``For purposes of 
    carrying out such contract, grant, or agreement, the Secretary 
    shall, at the request of an Indian tribe, enter into an agreement 
    for the acquisition, on behalf of the Indian tribe, of any goods, 
    services, or supplies available to the Secretary from the General 
    Services Administration or other Federal agencies that are not 
    directly available to the Indian tribe under this section or under 
    any other Federal law, including acquisitions from prime vendors. 
    All such acquisitions shall be undertaken through the most 
    efficient and speedy means practicable, including electronic 
    ordering arrangements.''.

SEC. 8. PATIENT RECORDS.

    Section 105 of the Indian Self-Determination and Education 
Assistance Act (25 U.S.C. 450j) is amended by adding at the end the 
following:
    ``(o) Patient Records.--
        ``(1) In general.--At the option of an Indian tribe or tribal 
    organization, patient records may be deemed to be Federal records 
    under those provisions of title 44, United States Code, that are 
    commonly referred to as the `Federal Records Act of 1950' for the 
    limited purposes of making such records eligible for storage by 
    Federal Records Centers to the same extent and in the same manner 
    as other Department of Health and Human Services patient records.
        ``(2) Treatment of records.--Patient records that are deemed to 
    be Federal records under those provisions of title 44, United 
    States Code, that are commonly referred to as the `Federal Records 
    Act of 1950' pursuant to this subsection shall not be considered 
    Federal records for the purposes of chapter 5 of title 5, United 
    States Code.''.

SEC. 9. ANNUAL REPORTS.

    Section 106 of the Indian Self-Determination and Education 
Assistance Act (25 U.S.C. 450j-1) is amended--
        (1) by redesignating subsections (c) through (n) as subsections 
    (d) through (o), respectively; and
        (2) by inserting after subsection (b), the following:
    ``(c) Annual Reports.--Not later than May 15 of each year, the 
Secretary shall prepare and submit to Congress an annual report on the 
implementation of this Act. Such report shall include--
        ``(1) an accounting of the total amounts of funds provided for 
    each program and the budget activity for direct program costs and 
    contract support costs of tribal organizations under self-
    determination;
        ``(2) an accounting of any deficiency in funds needed to 
    provide required contract support costs to all contractors for the 
    fiscal year for which the report is being submitted;
        ``(3) the indirect cost rate and type of rate for each tribal 
    organization that has been negotiated with the appropriate 
    Secretary;
        ``(4) the direct cost base and type of base from which the 
    indirect cost rate is determined for each tribal organization;
        ``(5) the indirect cost pool amounts and the types of costs 
    included in the indirect cost pool; and
        ``(6) an accounting of any deficiency in funds needed to 
    maintain the preexisting level of services to any Indian tribes 
    affected by contracting activities under this Act, and a statement 
    of the amount of funds needed for transitional purposes to enable 
    contractors to convert from a Federal fiscal year accounting cycle, 
    as authorized by section 105(d).''.

SEC. 10. REPEAL.

    Title III of the Indian Self-Determination and Education Assistance 
Act (25 U.S.C. 450f note) is repealed.

SEC. 11. SAVINGS PROVISION.

    Funds appropriated for title III of the Indian Self-Determination 
and Education Assistance Act (25 U.S.C. 450f note) shall be available 
for use under title V of such Act.

SEC. 12. APPLICATION TO ALASKA.

    (a) Notwithstanding any other provision of law, nothing in this 
Act, the amendments made thereby, nor its implementation, shall 
affect--
        (1) the right of the Consortium or Southcentral Foundation to 
    carry out the programs, functions, services and activities as 
    specified in section 325 of Public Law 105-83 (111 Stat. 55-56); or
        (2) the prohibitions in section 351 of section 101(e) of 
    division A, Public Law 105-277.
    (b) Section 351 of section 101(e) of division A, Public Law 105-277 
and section 326 of Public Law 105-83 (111 Stat. 57) are amended by 
inserting ``as amended'' after the phrase ``Public Law 93-638 (25 
U.S.C. 450 et seq.)'' where such phrase appears in each section.

SEC. 13. EFFECTIVE DATE.

    Except as otherwise provided, the provisions of this Act shall take 
effect on the date of the enactment of this Act.

                               Speaker of the House of Representatives.

                            Vice President of the United States and    
                                               President of the Senate.
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