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[Congressional Bills 106th Congress]
[From the U.S. Government Publishing Office]
[S. 1586 Reported in Senate (RS)]

                                                       Calendar No. 714
106th CONGRESS
  2d Session
                                S. 1586

                          [Report No. 106-361]

  To reduce the fractionated ownership of Indian lands, and for other 
                               purposes.

_______________________________________________________________________

                   IN THE SENATE OF THE UNITED STATES

                           September 15, 1999

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

                             July 26, 2000

              Reported by Mr. Campbell, with an amendment
 [Strike out all after the enacting clause and insert the part printed 
                               in italic]

_______________________________________________________________________

                                 A BILL

 
  To reduce the fractionated ownership of Indian lands, and for other 
                               purposes.

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

<DELETED>SECTION 1. SHORT TITLE.</DELETED>

<DELETED>    This Act may be cited as the ``Indian Land Consolidation 
Act Amendments of 1999''.</DELETED>

<DELETED>SEC. 2. FINDINGS.</DELETED>

<DELETED>    Congress finds that--</DELETED>
        <DELETED>    (1) in the 1800's and early 1900's, the United 
        States sought to assimilate Indian people into the surrounding 
        non-Indian culture by allotting tribal lands to individual 
        members of Indian tribes;</DELETED>
        <DELETED>    (2) many trust allotments were taken out of trust 
        status and sold by their Indian owners;</DELETED>
        <DELETED>    (3) the trust periods for trust allotments have 
        been extended indefinitely;</DELETED>
        <DELETED>    (4) because of the inheritance provisions in the 
        original treaties or allotment Acts, the ownership of many of 
        the trust allotments that have remained in trust status has 
        become fractionated into hundreds or thousands of interests, 
        many of which represent 2 percent or less of the total 
        interests;</DELETED>
        <DELETED>    (5) Congress has authorized the acquisition of 
        lands in trust for individual Indians, and many of those lands 
        have also become fractionated by subsequent 
        inheritance;</DELETED>
        <DELETED>    (6) the acquisitions referred to in paragraph (5) 
        continue to be made;</DELETED>
        <DELETED>    (7) the fractional interests described in this 
        section provide little or no return to the beneficial owners of 
        those interests and the administrative costs borne by the 
        United States for those interests are inordinate;</DELETED>
        <DELETED>    (8) substantial numbers of fractional interests of 
        2 percent or less of a total interest in trust or restricted 
        lands have escheated to Indian tribes under section 207 of the 
        Indian Land Consolidation Act (25 U.S.C. 2206), which was 
        enacted in 1983;</DELETED>
        <DELETED>    (9) in Babbit v. Youpee (117 S Ct. 727 (1997)), 
        the United States Supreme Court found that the application of 
        section 207 of the Indian Land Consolidation Act to the facts 
        presented in that case to be unconstitutional;</DELETED>
        <DELETED>    (10) in the absence of remedial legislation, the 
        number of the fractional interests will continue to grow; 
        and</DELETED>
        <DELETED>    (11) the problem of the fractionation of Indian 
        lands described in this section is the result of a policy of 
        the Federal Government, cannot be solved by Indian tribes, and 
        requires a solution under Federal law.</DELETED>

<DELETED>SEC. 3. DECLARATION OF POLICY.</DELETED>

<DELETED>    It is the policy of the United States--</DELETED>
        <DELETED>    (1) to prevent the further fractionation of trust 
        allotments made to Indians;</DELETED>
        <DELETED>    (2) to consolidate fractional interests and 
        ownership of those interests into usable parcels;</DELETED>
        <DELETED>    (3) to consolidate fractional interests in a 
        manner that enhances tribal sovereignty; and</DELETED>
        <DELETED>    (4) to promote tribal self-sufficiency and self-
        determination.</DELETED>

<DELETED>SEC. 4. AMENDMENTS TO THE INDIAN LAND CONSOLIDATION 
              ACT.</DELETED>

<DELETED>    (a) In General.--The Indian Land Consolidation Act (25 
U.S.C. 2201 et seq.) is amended--</DELETED>
        <DELETED>    (1) in section 202--</DELETED>
                <DELETED>    (A) in paragraph (1), by striking ``(1) 
                `tribe''' and inserting ``(1) `Indian tribe' or 
                `tribe''';</DELETED>
                <DELETED>    (B) by striking paragraph (2) and 
                inserting the following:</DELETED>
        <DELETED>    ``(2)`Indian' means any person who is a member of 
        an Indian tribe or is eligible to become a member of an Indian 
        tribe at the time of the distribution of the assets of a 
        decedent's estate;'';</DELETED>
                <DELETED>    (C) by striking ``and'' at the end of 
                paragraph (3);</DELETED>
                <DELETED>    (D) by striking the period at the end of 
                paragraph (4) and inserting ``; and''; and</DELETED>
                <DELETED>    (E) by adding at the end the 
                following:</DELETED>
        <DELETED>    ``(5) `heirs of the first or second degree' means 
        parents, children, grandchildren, grandparents, brothers and 
        sisters of a decedent.'';</DELETED>
        <DELETED>    (2) by amending section 203 to read as 
        follows:</DELETED>

<DELETED>``SEC. 203. OTHER APPLICABLE PROVISIONS.</DELETED>

<DELETED>    ``(a) In General.--Subject to subsection (b), sections 5 
and 7 of the Act of June 18, 1934 (commonly known as the `Indian 
Reorganization Act') (48 Stat. 985 et seq., chapter 576; 25 U.S.C. 465 
and 467) shall apply to all Indian tribes, notwithstanding section 18 
of that Act (25 U.S.C. 478).</DELETED>
<DELETED>    ``(b) Rule of Construction.--Nothing in this section is 
intended to supersede any other provision of Federal law which 
authorizes, prohibits, or restricts the acquisition of land or the 
creation of reservations for Indians with respect to any specific 
Indian tribe, reservation, or State.'';</DELETED>
        <DELETED>    (3) in section 205--</DELETED>
                <DELETED>    (A) in the matter preceding paragraph 
                (1)--</DELETED>
                        <DELETED>    (i) by striking ``Any Indian'' and 
                        inserting ``(a) In General.--Subject to 
                        subsection (b), any Indian'';</DELETED>
                        <DELETED>    (ii) by striking ``per centum of 
                        the undivided interest in such tract'' and 
                        inserting ``percent of the individual interests 
                        in such tract. Interests owned by an Indian 
                        tribe in a tract may be included in the 
                        computation of the percentage of ownership of 
                        the undivided interests in that tract for 
                        purposes of determining whether the consent 
requirement under the preceding sentence has been met.'';</DELETED>
                        <DELETED>    (iii) by striking ``: Provided, 
                        That--''; and inserting the 
                        following:</DELETED>
<DELETED>    ``(b) Conditions Applicable to Purchase.--Subsection (a) 
applies on the conditions that--'';</DELETED>
                <DELETED>    (B) in paragraph (2)--</DELETED>
                        <DELETED>    (i) by striking ``If,'' and 
                        inserting ``if''; and</DELETED>
                        <DELETED>    (ii) by adding ``and'' at the end; 
                        and</DELETED>
                <DELETED>    (C) by striking paragraph (3) and 
                inserting the following:</DELETED>
        <DELETED>    ``(3) the approval of the Secretary shall be 
        required for a land sale initiated under this section, except 
        that such approval shall not be required with respect to a land 
        sale transaction initiated by an Indian tribe that has in 
        effect a land consolidation plan that has been approved by the 
        Secretary under section 204.'';</DELETED>
        <DELETED>    (4) by striking section 206 and inserting the 
        following:</DELETED>

<DELETED>``SEC. 206. DESCENT AND DISTRIBUTION OF TRUST OR RESTRICTED 
              LANDS; TRIBAL ORDINANCE BARRING NONMEMBERS OF AN INDIAN 
              TRIBE FROM INHERITANCE BY DEVISE OR DESCENT.</DELETED>

<DELETED>    ``(a) Tribal Probate Codes.--</DELETED>
        <DELETED>    ``(1) In general.--Notwithstanding any other 
        provision of law, any Indian tribe may adopt a tribal probate 
        code to govern descent and distribution of trust or restricted 
        lands that are--</DELETED>
                <DELETED>    ``(A) located within that Indian tribe's 
                reservation; or</DELETED>
                <DELETED>    ``(B) otherwise subject to the 
                jurisdiction of that Indian tribe.</DELETED>
        <DELETED>    ``(2) Codes.--A tribal probate code referred to in 
        paragraph (1) may provide that, notwithstanding section 207, 
        only members of the Indian tribe shall be entitled to receive 
        by devise or descent any interest in trust or restricted lands 
        within that Indian tribe's reservation or otherwise subject to 
        that Indian tribe's jurisdiction.</DELETED>
<DELETED>    ``(b) Secretarial Approval.--</DELETED>
        <DELETED>    ``(1) In general.--Any tribal probate code enacted 
        under subsection (a), and any amendment to such a tribal 
        probate code, shall be subject to the approval of the 
        Secretary.</DELETED>
        <DELETED>    ``(2) Review and approval.--</DELETED>
                <DELETED>    ``(A) In general.--Each Indian tribe that 
                adopts a tribal probate code under subsection (a) shall 
                submit that code to the Secretary for review. Not later 
                than 180 days after a tribal probate code is submitted 
                to the Secretary under this paragraph, the Secretary 
                shall review and approve or disapprove that tribal 
                probate code.</DELETED>
                <DELETED>    ``(B) Consequence of failures to approve 
                or disapprove a tribal probate code.--If the Secretary 
                fails to approve or disapprove a tribal probate code 
                submitted for review under subparagraph (A) by the date 
                specified in that subparagraph, the tribal probate code 
                shall be deemed to have been approved by the Secretary, 
                but only to the extent that the tribal probate code is 
                consistent with Federal law.</DELETED>
                <DELETED>    ``(C) Consistency of tribal probate code 
                with this act.--The Secretary may not approve a tribal 
                probate code under this paragraph unless the Secretary 
                determines that the tribal probate code is consistent 
                with this Act.</DELETED>
                <DELETED>    ``(D) Explanation.--If the Secretary 
                disapproves a tribal probate code under this paragraph, 
                the Secretary shall include in a notice of the 
                disapproval to the Indian tribe a written explanation 
                of the reasons for the disapproval.</DELETED>
                <DELETED>    ``(E) Amendments.--</DELETED>
                        <DELETED>    ``(i) In general.--Each Indian 
                        tribe that amends a tribal probate code under 
                        this paragraph shall submit the amendment to 
                        the Secretary for review and approval. Not 
                        later than 60 days after receiving an amendment 
                        under this subparagraph, the Secretary shall 
                        review and approve or disapprove the 
                        amendment.</DELETED>
                        <DELETED>    ``(ii) Consequence of failure to 
                        approve or disapprove an amendment.--If the 
                        Secretary fails to approve or disapprove an 
                        amendment submitted under clause (i), the 
                        amendment shall be deemed to have been approved 
                        by the Secretary, but only to the extent that 
                        the amendment is consistent with Federal 
                        law.</DELETED>
        <DELETED>    ``(3) Effective dates.--A tribal probate code or 
        amendment approved under paragraph (2) shall become effective 
        on the later of--</DELETED>
                <DELETED>    ``(A) the date specified in section 
                207(e)(1); or</DELETED>
                <DELETED>    ``(B) 180 days after the date of 
                approval.</DELETED>
        <DELETED>    ``(4) Limitations.--</DELETED>
                <DELETED>    ``(A) Tribal probate codes.--Each tribal 
                probate code enacted under subsection (a) shall apply 
                only to the estate of a decedent who dies on or after 
                the effective date of the tribal probate 
                code.</DELETED>
                <DELETED>    ``(B) Amendments to tribal probate 
                codes.--With respect to an amendment to a tribal 
                probate code referred to in subparagraph (A), that 
                amendment shall apply only to the estate of a 
                descendant who dies on or after the effective date of 
                the amendment.</DELETED>
        <DELETED>    ``(5) Repeals.--The repeal of a tribal probate 
        code shall--</DELETED>
                <DELETED>    ``(A) not become effective earlier than 
                the date that is 180 days after the Secretary receives 
                notice of the repeal; and</DELETED>
                <DELETED>    ``(B) apply only to the estate of a 
                decedent who dies on or after the effective date of the 
                repeal.</DELETED>
<DELETED>    ``(c) Use of Proposed Findings by Tribal Justice 
Systems.--</DELETED>
        <DELETED>    ``(1) Tribal justice system defined.--In this 
        subsection, the term `tribal justice system' has the meaning 
        given that term in section 3 of the Indian Tribal Justice Act 
        (25 U.S.C. 3602).</DELETED>
        <DELETED>    ``(2) Regulations.--The Secretary shall promulgate 
        regulations concerning the use of proposed findings of fact and 
        conclusions of law, as rendered by a tribal justice system, in 
        the adjudication of probate proceedings by the Department of 
        the Interior.</DELETED>
<DELETED>    ``(d) Life Estates for Non-Indian Spouses and Children Who 
Would Otherwise Be Precluded From Inheriting By Reason of the Operation 
of a Tribal Probate Code.--</DELETED>
        <DELETED>    ``(1) In general.--Paragraph (2) shall apply with 
        respect to a non-Indian spouse or child of an Indian decedent, 
        if that decedent is subject to a tribal probate code that has 
        been approved by the Secretary (or deemed approved) under 
        subsection (b) and--</DELETED>
                <DELETED>    ``(A) dies intestate; and</DELETED>
                <DELETED>    ``(B) has devised an interest in trust or 
                restricted lands to that non-Indian spouse or child, 
                which the spouse or child is otherwise prohibited from 
                inheriting by reason of that tribal probate 
                code.</DELETED>
        <DELETED>    ``(2) Life estates.--</DELETED>
                <DELETED>    ``(A) In general.--A surviving non-Indian 
                spouse or child of the decedent described in paragraph 
                (1) may elect to receive a life estate in the portion 
                of the trust or restricted lands to which that 
                individual would have been entitled under the tribal 
                probate code, if that individual were an 
                Indian.</DELETED>
                <DELETED>    ``(B) Remainder of interest.--If a non-
                Indian spouse or child elects to receive a life estate 
                described in subparagraph (A), the remainder of the 
                interest of the Indian decedent shall vest in the 
                Indians who would otherwise have been heirs, but for 
                that spouse's or child's election to receive a life 
                estate.'';</DELETED>
        <DELETED>    (5) by striking section 207 and inserting the 
        following:</DELETED>

<DELETED>``SEC. 207. DESCENT AND DISTRIBUTION; ESCHEAT OF FRACTIONAL 
              INTERESTS.</DELETED>

<DELETED>    ``(a) Descent and Distribution.--Except as provided in 
this section, interests in trust or restricted lands may descend by 
testate or intestate succession only to--</DELETED>
        <DELETED>    ``(1) the decedent's heirs-at-law or relatives 
        within the first and second degree;</DELETED>
        <DELETED>    ``(2) a person who owns a preexisting interest in 
        the same parcel of land conveyed by the decedent;</DELETED>
        <DELETED>    ``(3) members of the Indian tribe with 
        jurisdiction over the lands devised; or</DELETED>
        <DELETED>    ``(4) the Indian tribe with jurisdiction over the 
        lands devised.</DELETED>
<DELETED>    ``(b) Special Rule.--A decedent that does not have a 
relative who meets the description under subsection (a)(1) or a 
relative who is a member described in subsection (a)(3) may devise that 
decedent's estate or any asset of that estate to any 
relative.</DELETED>
<DELETED>     ``(c) Devise of Interests in the Same Parcel to More Than 
1 Person.--</DELETED>
        <DELETED>    ``(1) Joint tenancy with right of survivorship.--
        If a testator devises interests in the same parcel of trust or 
        restricted land to more than 1 person, in the absence of 
        express language in the devise to the contrary, the devise 
        shall be presumed to create a joint tenancy with right of 
        survivorship.</DELETED>
        <DELETED>    ``(2) Estates passing by intestate succession.--
        With respect to an estate passing by intestate succession, only 
        a spouse and heirs of the first or second degree may inherit an 
        interest in trust or restricted lands.</DELETED>
        <DELETED>    ``(3) Escheat.--If no individual is eligible to 
        receive an interest in trust or restricted lands, the interest 
        shall escheat to the Indian tribe having jurisdiction over the 
        trust or restricted lands, subject to any life estate that may 
        be created under section 206(d).</DELETED>
        <DELETED>    ``(4) Notification to indian tribes.--Not later 
        than 180 days after the date of enactment of the Indian Land 
        Consolidation Act Amendments of 1999, the Secretary shall, to 
        the extent that the Secretary considers to be practicable, 
        notify Indian tribes and individual landowners of the 
        amendments made by the Indian Land Consolidation Act Amendments 
        of 1999. The notice shall list estate planning options 
        available to the owners.</DELETED>
        <DELETED>    ``(5) Descent of off-reservation lands.--
        </DELETED>
                <DELETED>    ``(A) Indian reservation defined.--For 
                purposes of this paragraph, the term `Indian 
                reservation' includes lands located within--</DELETED>
                        <DELETED>    ``(i) Oklahoma; and</DELETED>
                        <DELETED>    ``(ii) the boundaries of an Indian 
                        tribe's former reservation (as defined and 
                        determined by the Secretary).</DELETED>
                <DELETED>    ``(B) Descent.--Upon the death of an 
                individual holding an interest in trust or restricted 
                lands that are located outside the boundaries of an 
                Indian reservation and that are not subject to the 
                jurisdiction of any Indian tribe, that interest shall 
                descend either--</DELETED>
                <DELETED>    ``(A) by testate or intestate succession 
                in trust to an Indian; or</DELETED>
                <DELETED>    ``(B) in fee status to any other devises 
                or heirs.</DELETED>
        <DELETED>    ``(6) Notice to indians.--</DELETED>
                <DELETED>    ``(A) In general.--The Secretary shall 
                provide notice to each Indian that has an interest in 
                trust or restricted lands of that interest. The notice 
                shall specify that if such interest is in 2 percent or 
                less of the total acreage in a parcel of trust or 
                restricted lands, that interest may escheat to the 
                Indian tribe of that Indian.</DELETED>
                <DELETED>    ``(B) Limitation.--Subsections (a) and (d) 
                shall not apply to the probate of any interest in trust 
                or restricted lands of an Indian decedent if the 
                Secretary failed to provide notice under subparagraph 
                (A) to that individual before the date that is 180 days 
                before the death of the decedent.</DELETED>
<DELETED>    ``(d) Escheatable Fractional Interests.--</DELETED>
        <DELETED>    ``(1) In general.--Notwithstanding subsection (a), 
        no undivided interest which represents 2 percent or less of the 
        total acreage in a parcel of trust or restricted land shall 
        pass by intestacy.</DELETED>
        <DELETED>    ``(2) Escheat.--An undivided interest referred to 
        in paragraph (1) shall escheat--</DELETED>
                <DELETED>    ``(A) to the Indian tribe on whose 
                reservation the interest is located; or</DELETED>
                <DELETED>    ``(B) if that interest is located outside 
                of a reservation, to the recognized tribal government 
                possessing jurisdiction over the land.''; and</DELETED>
        <DELETED>    (6) by adding at the end the following:</DELETED>

<DELETED>``SEC. 213. ACQUISITION OF FRACTIONAL INTERESTS.</DELETED>

<DELETED>    ``(a) In General.--The Secretary may acquire, in the 
discretion of the Secretary, with the consent of its owner and at fair 
market value, any fractional interest in trust or restricted lands. The 
Secretary shall give priority to the acquisition of fractional 
interests representing 2 percent or less of a parcel of trust or 
restricted land. The Secretary shall hold in trust for the Indian tribe 
that has jurisdiction over the fractional interest in trust or 
restricted lands the title of all interests acquired under this 
section.</DELETED>
<DELETED>    ``(b) Program of Acquisition.--Any Indian tribe that has 
in effect a consolidation plan that has been approved by the Secretary 
under section 204 may request the Secretary to enter into an agreement 
with the Indian tribe to implement a program to acquire fractional 
interests, as authorized by subsection (a) using funds appropriated 
pursuant to this Act.</DELETED>

<DELETED>``SEC. 214. ADMINISTRATION OF ACQUIRED FRACTIONAL INTERESTS, 
              DISPOSITION OF PROCEEDS.</DELETED>

<DELETED>    ``(a) In General.--Subject to the conditions described in 
subsection (b)(1), an Indian tribe receiving a fractional interest 
under section 207 or 213 may, as a tenant in common with the other 
owners of the trust or restricted lands, lease the interest, sell the 
resources, consent to the granting of rights-of-way, or engage in any 
other transaction affecting the trust or restricted land authorized by 
law.</DELETED>
<DELETED>    ``(b) Conditions.--</DELETED>
        <DELETED>    ``(1) In general.--The conditions described in 
        this paragraph are as follows:</DELETED>
                <DELETED>    ``(A) Until the purchase price paid by the 
                Secretary for the interest referred to in subsection 
                (a) has been recovered, any lease, resource sale 
                contract, right-of-way, or other transaction affecting 
                the document providing for the disposition of the 
                interest under that subsection shall contain a clause 
                providing that all revenue derived from the interest 
                shall be paid to the Secretary.</DELETED>
                <DELETED>    ``(B) The Secretary shall deposit any 
                revenue derived from interest paid under subparagraph 
                (A) in the Acquisition Fund created under section 
                216.</DELETED>
                <DELETED>    ``(C) The Secretary shall deposit any 
                revenue derived from the interest that is paid under 
                subparagraph (A) that is in an amount in excess of the 
                purchase price of the fractional interest involved to 
                the credit of the Indian tribe that receives the 
                fractional interest under section 213.</DELETED>
                <DELETED>    ``(D) Notwithstanding any other provision 
                of law, including section 16 of the Act of June 18, 
                1934 (commonly referred to as the `Indian 
                Reorganization Act') (48 Stat. 987, chapter 576; 25 
                U.S.C. 476), during such time as an Indian tribe is a 
                tenant in common with individual Indian landowners on 
                land acquired under section 207 or 213, the Indian 
                tribe may not refuse to enter into any transaction 
                covered under this section if landowners owning a 
                majority of the undivided interests in the parcel 
                consent to the transaction.</DELETED>
                <DELETED>    ``(E) If the Indian tribe does not consent 
                to enter into a transaction referred to in subparagraph 
                (D), the Secretary may consent on behalf of the Indian 
                tribe.</DELETED>
                <DELETED>    ``(F) For leases of allotted land that are 
                authorized to be granted by the Secretary, the Indian 
                tribe shall be treated as if the Indian tribe were an 
                individual Indian landowner.</DELETED>
        <DELETED>    ``(2) Exception.--Paragraph (1)(A) shall not apply 
        to any revenue derived from an interest in a parcel of land 
        acquired by the Secretary under section after an amount equal 
        to the purchase price of that interest in land has been paid 
        into the Acquisition Fund created under section 216.</DELETED>

<DELETED>``SEC. 215. ESTABLISHING FAIR MARKET VALUE.</DELETED>

<DELETED>    ``For the purposes of this Act, the Secretary may develop 
a reservation-wide system (or system for another appropriate 
geographical unit) for establishing the fair market value of various 
types of lands and improvements. That system may govern the amounts 
offered for the purchase of interests in trust or restricted lands 
under section 213.</DELETED>

<DELETED>``SEC. 216. ACQUISITION FUND.</DELETED>

<DELETED>    ``(a) In General.--The Secretary shall establish an 
Acquisition Fund to--</DELETED>
        <DELETED>    ``(1) disburse appropriations authorized to 
        accomplish the purposes of section 213; and</DELETED>
        <DELETED>    ``(2) collect all revenues received from the 
        lease, permit, or sale of resources from interests in trust or 
        restricted lands transferred to Indian tribes by the Secretary 
        under section 213.</DELETED>
<DELETED>    ``(b) Deposits; Use.--</DELETED>
        <DELETED>    ``(1) In general.--Subject to paragraph (2), all 
        proceeds from leases, permits, or resource sales derived from 
        an interest in trust or restricted lands described in 
        subsection (a)(2) shall--</DELETED>
                <DELETED>    ``(A) be deposited in the Acquisition 
                Fund; and</DELETED>
                <DELETED>    ``(B) as specified in advance in 
                appropriations Acts, be available for the purpose of 
                acquiring additional fractional interests in trust or 
                restricted lands.</DELETED>
        <DELETED>    ``(2) Maximum deposits of proceeds.--With respect 
        to the deposit of proceeds derived from an interest under 
        paragraph (1), the aggregate amount deposited under that 
        paragraph shall not exceed the purchase price of that interest 
        under section 213.</DELETED>

<DELETED>``SEC. 217. DETERMINATION OF RESERVATION BOUNDARIES AND TRIBAL 
              JURISDICTION.</DELETED>

<DELETED>    ``(a) Determination of Jurisdiction.--</DELETED>
        <DELETED>    ``(1) In general.--The Secretary shall determine 
        whether a parcel of land is--</DELETED>
                <DELETED>    ``(A) within an Indian reservation; 
                or</DELETED>
                <DELETED>    ``(B) otherwise subject to an Indian 
                tribe's jurisdiction.</DELETED>
        <DELETED>    ``(2) Review.--The United States District Court 
        for the district where land that is subject to a determination 
        under paragraph (1) is located may review the determination 
        under chapter 7 of title 5, United States Code.</DELETED>
<DELETED>    ``(b) Rule of Construction.--Nothing in this Act may be 
construed to affect section 2409a of title 28, United States 
Code.</DELETED>

<DELETED>``SEC. 218. TRUST AND RESTRICTED LAND TRANSACTIONS.</DELETED>

<DELETED>    ``(a) Policy.--It is the policy of the United States to 
encourage and assist the consolidation of land ownership through 
transactions involving individual Indians in a manner consistent with 
the policy of maintaining the trust status of allotted lands.</DELETED>
<DELETED>    ``(b) Valuation of Sales and Exchanges.--Notwithstanding 
any other provision of law--</DELETED>
        <DELETED>    ``(1) the sale of an interest in trust or 
        restricted land may be made for an amount that is less than the 
        fair market value of that interest; and</DELETED>
        <DELETED>    ``(2) the exchange of an interest in trust or 
        restricted lands may be made for an interest of a value less 
        than the fair market value of the interest in those 
        lands.</DELETED>
<DELETED>    ``(c) Status of Lands.--The sale or exchange of an 
interest in trust or restricted land under this section shall not 
affect the status of that land as trust or restricted land.</DELETED>
<DELETED>    ``(d) Gift Deeds.--</DELETED>
        <DELETED>    ``(1) In general.--An individual owner of an 
        interest in trust or restricted land may convey that interest 
        by gift deed to--</DELETED>
                <DELETED>    ``(A) an individual Indian who is a member 
                of the Indian tribe that exercises jurisdiction over 
                the land;</DELETED>
                <DELETED>    ``(B) the Indian tribe that exercises 
                jurisdiction over that land; or</DELETED>
                <DELETED>    ``(C) any other person whom the Secretary 
                determines may hold the land in trust or restricted 
                status.</DELETED>
        <DELETED>    ``(2) Special rule.--With respect to any gift deed 
        conveyed under this section, the Secretary shall not require an 
        appraisal.</DELETED>

<DELETED>``SEC. 219. REPORTS TO CONGRESS.</DELETED>

<DELETED>    ``(a) In General.--Not later than the date that is 3 years 
after the date of enactment of the Indian Land Consolidation Act 
Amendments of 1999, and annually thereafter, the Secretary shall submit 
to Congress a report that indicates, for the period covered by the 
report--</DELETED>
        <DELETED>    ``(1) the number of fractional interests in trust 
        or restricted lands acquired; and</DELETED>
        <DELETED>    ``(2) the impact of the resulting reduction in the 
        number of such fractional interests on the financial and realty 
        recordkeeping systems of the Bureau of Indian 
        Affairs.</DELETED>
<DELETED>    ``(b) Recommendations for Legislation.--The Secretary, 
after consultation with the Indian tribes, shall make recommendations 
for such legislation as is necessary to make further reductions in the 
fractional interests referred to in subsection (a).</DELETED>

<DELETED>``SEC. 220. APPROVAL OF LEASES, RIGHTS-OF-WAY, AND SALES OF 
              NATURAL RESOURCES.</DELETED>

<DELETED>    ``(a) In General.--The Secretary may approve any lease, 
right-of-way, sale of natural resources, or any other transaction 
affecting individually owned trust or restricted lands that requires 
approval by the Secretary, if--</DELETED>
        <DELETED>    ``(1) the owners of a majority interest in the 
        trust or restricted lands consent to the transaction; 
        and</DELETED>
        <DELETED>    ``(2) the Secretary determines that approval of 
        the transaction is in the best interest of the Indian 
        owners.</DELETED>
<DELETED>    ``(b) Binding Transactions.--Upon the approval of a 
transaction referred to in subsection (a), the transaction shall be 
binding upon the owners of the minority interests in the trust or 
restricted land, and all other parties to the transaction to the same 
extent as if all of the Indian owners had consented to the 
transaction.</DELETED>

<DELETED>``SEC. 221. REAL ESTATE TRANSACTIONS INVOLVING NON-TRUST 
              LANDS.</DELETED>

<DELETED>    ``(a) In General.--Notwithstanding any other provision of 
law, any Indian tribe may on the same basis as any other person, buy, 
sell, mortgage, or otherwise acquire or dispose of lands or interests 
in land described in subsection (b), without an Act of Congress or the 
approval of the Secretary.</DELETED>
<DELETED>    ``(b) Lands.--Lands described in this subsection are lands 
that are--</DELETED>
        <DELETED>    ``(1) acquired after the date of enactment of the 
        Indian Land Consolidation Act Amendments of 1999; and</DELETED>
        <DELETED>    ``(2) not held in trust or subject to a 
        preexisting Federal restriction on alienation imposed by the 
        United States.</DELETED>
<DELETED>    ``(c) No Liability on Part of the United States.--The 
disposition of lands described in subsection (b) shall create no 
liability on the part of the United States.''.</DELETED>
<DELETED>    (b) Effective Date; Applicability.--</DELETED>
        <DELETED>    (1) Effective date of amendments to section 207 of 
        the indian land consolidation act.--Except with respect to the 
        notification under section 207(c) (4) and (6) of the Indian 
        Land Consolidation Act (25 U.S.C. 2206(c) (4) and (6)), the 
        amendments made by subsection (a) to section 207 of the Indian 
        Land Consolidation Act (25 U.S.C. 2206) shall become effective 
        on the date that is 2 years after the date of enactment of this 
        Act.</DELETED>
        <DELETED>    (2) Applicability.--The amendments made by 
        subsection (a) to section 207 of the Indian Land Consolidation 
        Act shall apply only to the estates of decedents that die on or 
        after the date specified in paragraph (1).</DELETED>

<DELETED>SEC. 5. AUTHORIZATION OF APPROPRIATIONS.</DELETED>

<DELETED>    There are authorized to be appropriated such sums as are 
necessary to carry out this Act.</DELETED>

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Indian Land Consolidation Act 
Amendments of 2000''.

SEC. 2. FINDINGS.

    Congress finds that--
            (1) in the 1800's and early 1900's, the United States 
        sought to assimilate Indian people into the surrounding non-
        Indian culture by allotting tribal lands to individual members 
        of Indian tribes;
            (2) as a result of the allotment Acts and related Federal 
        policies, over 90,000,000 acres of land have passed from tribal 
        ownership;
            (3) many trust allotments were taken out of trust status, 
        often without their owners' consent;
            (4) without restrictions on alienation, allotment owners 
        were subject to exploitation and their allotments were often 
        sold or disposed of without any tangible or enduring benefit to 
        their owners;
            (5) the trust periods for trust allotments have been 
        extended indefinitely;
            (6) because of the inheritance provisions in the original 
        treaties or allotment Acts, the ownership of many of the trust 
        allotments that have remained in trust status has become 
        fractionated into hundreds or thousands of interests, many of 
        which represent 2 percent or less of the total interests;
            (7) Congress has authorized the acquisition of lands in 
        trust for individual Indians, and many of those lands have also 
        become fractionated by subsequent inheritance;
            (8) the acquisitions referred to in paragraph (7) continue 
        to be made;
            (9) the fractional interests described in this section 
        provide little or no return to the beneficial owners of those 
        interests and the administrative costs borne by the United 
        States for those interests are inordinately high;
            (10) in Babbitt v. Youpee (117 S Ct. 727 (1997)), the 
        United States Supreme Court found that the application of 
        section 207 of the Indian Land Consolidation Act (25 U.S.C. 
        2206) to the facts presented in that case to be 
        unconstitutional, forcing the Department of the Interior to 
        address the status of thousands of undivided interests in trust 
        and restricted lands;
            (11)(A) on February 19, 1999, the Secretary of Interior 
        issued a Secretarial Order which officially reopened the 
        probate of all estates where an interest in land was ordered to 
        escheat to an Indian tribe pursuant to section 207 of the 
        Indian Land Consolidation Act (25 U.S.C. 2206); and
            (B) the Secretarial Order also directed appropriate 
        officials of the Bureau of Indian Affairs to distribute such 
        interests ``to the rightful heirs and beneficiaries without 
        regard to 25 U.S.C. 2206'';
            (12) in the absence of comprehensive remedial legislation, 
        the number of the fractional interests will continue to grow 
        exponentially;
            (13) the problem of the fractionation of Indian lands 
        described in this section is the result of a policy of the 
        Federal Government, cannot be solved by Indian tribes, and 
        requires a solution under Federal law.
            (14) any devise or inheritance of an interest in trust or 
        restricted Indian lands is based on Federal law; and
            (15) consistent with the Federal policy of tribal self-
        determination, the Federal Government should encourage the 
        recognized tribal government that exercises jurisdiction over a 
        reservation to establish a tribal probate code for that 
        reservation.

SEC. 3. DECLARATION OF POLICY.

    It is the policy of the United States--
            (1) to prevent the further fractionation of trust 
        allotments made to Indians;
            (2) to consolidate fractional interests and ownership of 
        those interests into usable parcels;
            (3) to consolidate fractional interests in a manner that 
        enhances tribal sovereignty;
            (4) to promote tribal self-sufficiency and self-
        determination; and
            (5) to reverse the effects of the allotment policy on 
        Indian tribes.

SEC. 4. AMENDMENTS TO THE INDIAN LAND CONSOLIDATION ACT.

    The Indian Land Consolidation Act (25 U.S.C. 2201 et seq.) is 
amended--
            (1) in section 202--
                    (A) in paragraph (1), by striking ``(1) `tribe''' 
                and inserting ``(1) `Indian tribe' or `tribe''';
                    (B) by striking paragraph (2) and inserting the 
                following:
            ``(2)`Indian' means any person who is a member of any 
        Indian tribe or is eligible to become a member of any Indian 
        tribe at the time of the distribution of the assets of a 
        decedent's estate;'';
                    (C) by striking ``and'' at the end of paragraph 
                (3);
                    (D) by striking the period at the end of paragraph 
                (4) and inserting ``; and''; and
                    (E) by adding at the end the following:
            ``(5) `heirs of the first or second degree' means parents, 
        children, grandchildren, grandparents, brothers and sisters of 
        a decedent.'';
            (2) in section 205--
                    (A) in the matter preceding paragraph (1)--
                            (i) by striking ``Any Indian'' and 
                        inserting ``(a) In General.--Subject to 
                        subsection (b), any Indian'';
                            (ii) by striking the colon and inserting 
                        the following: ``. Interests owned by an Indian 
                        tribe in a tract may be included in the 
                        computation of the percentage of ownership of 
                        the undivided interests in that tract for 
                        purposes of determining whether the consent 
                        requirement under the preceding sentence has 
                        been met.'';
                            (iii) by striking ``: Provided, That--''; 
                        and inserting the following:
    ``(b) Conditions Applicable to Purchase.--Subsection (a) applies on 
the condition that--'';
                    (B) in paragraph (2)--
                            (i) by striking ``If,'' and inserting 
                        ``if''; and
                            (ii) by adding ``and'' at the end; and
                    (C) by striking paragraph (3) and inserting the 
                following:
            ``(3) the approval of the Secretary shall be required for a 
        land sale initiated under this section, except that such 
        approval shall not be required with respect to a land sale 
        transaction initiated by an Indian tribe that has in effect a 
        land consolidation plan that has been approved by the Secretary 
        under section 204.'';
            (3) by striking section 206 and inserting the following:

``SEC. 206. TRIBAL PROBATE CODES; ACQUISITIONS OF FRACTIONAL INTERESTS 
              BY TRIBES.

    ``(a) Tribal Probate Codes.--
            ``(1) In general.--Notwithstanding any other provision of 
        law, any Indian tribe may adopt a tribal probate code to govern 
        descent and distribution of trust or restricted lands that 
        are--
                    ``(A) located within that Indian tribe's 
                reservation; or
                    ``(B) otherwise subject to the jurisdiction of that 
                Indian tribe.
            ``(2) Possible inclusions.--A tribal probate code referred 
        to in paragraph (1) may include--
                    ``(A) rules of intestate succession; and
                    ``(B) other tribal probate code provisions that are 
                consistent with Federal law and that promote the 
                policies set forth in section 3 of the Indian Land 
                Consolidation Act Amendments of 2000.
            ``(3) Limitations.--The Secretary shall not approve a 
        tribal probate code if such code prevents an Indian person from 
        inheriting an interest in an allotment that was originally 
        allotted to his or her lineal ancestor.
    ``(b) Secretarial Approval.--
            ``(1) In general.--Any tribal probate code enacted under 
        subsection (a), and any amendment to such a tribal probate 
        code, shall be subject to the approval of the Secretary.
            ``(2) Review and approval.--
                    ``(A) In general.--Each Indian tribe that adopts a 
                tribal probate code under subsection (a) shall submit 
                that code to the Secretary for review. Not later than 
                180 days after a tribal probate code is submitted to 
                the Secretary under this paragraph, the Secretary shall 
                review and approve or disapprove that tribal probate 
                code.
                    ``(B) Consequence of failures to approve or 
                disapprove a tribal probate code.--If the Secretary 
                fails to approve or disapprove a tribal probate code 
                submitted for review under subparagraph (A) by the date 
                specified in that subparagraph, the tribal probate code 
                shall be deemed to have been approved by the Secretary, 
                but only to the extent that the tribal probate code is 
                consistent with Federal law and promotes the policies 
                set forth in section 3 of the Indian Land Consolidation 
                Act Amendments of 2000.
                    ``(C) Consistency of tribal probate code with 
                act.--The Secretary may not approve a tribal probate 
                code, or any amendment to such a code, under this 
                paragraph unless the Secretary determines that the 
                tribal probate code promotes the policies set forth in 
                section 3 of the Indian Land Consolidation Act 
                Amendments of 2000.
                    ``(D) Explanation.--If the Secretary disapproves a 
                tribal probate code, or an amendment to such a code, 
                under this paragraph, the Secretary shall include in 
                the notice of disapproval to the Indian tribe a written 
                explanation of the reasons for the disapproval.
                    ``(E) Amendments.--
                            ``(i) In general.--Each Indian tribe that 
                        amends a tribal probate code under this 
                        paragraph shall submit the amendment to the 
                        Secretary for review and approval. Not later 
                        than 60 days after receiving an amendment under 
                        this subparagraph, the Secretary shall review 
                        and approve or disapprove the amendment.
                            ``(ii) Consequence of failure to approve or 
                        disapprove an amendment.--If the Secretary 
                        fails to approve or disapprove an amendment 
                        submitted under clause (i), the amendment shall 
                        be deemed to have been approved by the 
                        Secretary, but only to the extent that the 
                        amendment is consistent with Federal law and 
                        promotes the policies set forth in section 3 of 
                        the Indian Land Consolidation Act of 2000.
            ``(3) Effective dates.--A tribal probate code approved 
        under paragraph (2) shall become effective on the later of--
                    ``(A) the date specified in section 207(f)(5); or
                    ``(B) 180 days after the date of approval.
            ``(4) Limitations.--
                    ``(A) Tribal probate codes.--Each tribal probate 
                code enacted under subsection (a) shall apply only to 
                the estate of a decedent who dies on or after the 
                effective date of the tribal probate code.
                    ``(B) Amendments to tribal probate codes.--With 
                respect to an amendment to a tribal probate code 
                referred to in subparagraph (A), that amendment shall 
                apply only to the estate of a descendant who dies on or 
                after the effective date of the amendment.
            ``(5) Repeals.--The repeal of a tribal probate code shall--
                    ``(A) not become effective earlier than the date 
                that is 180 days after the Secretary receives notice of 
                the repeal; and
                    ``(B) apply only to the estate of a decedent who 
                dies on or after the effective date of the repeal.
    ``(c) Authority Available to Indian Tribes.--
            ``(1) Application.--The recognized tribal government that 
        has jurisdiction over an Indian reservation (as defined in 
        section 207(c)(5)) may exercise the authority provided for in 
        paragraph (2).
            ``(2) Authority to make payments in lieu of inheritance of 
        interest in land.--
                    ``(A) Prohibition.--An individual who is not an 
                Indian shall not be entitled to receive by devise or 
                descent any interest in trust or restricted land, 
                except by reserving a life estate under subparagraph 
                (B)(ii), within the reservation over which a tribal 
                government has jurisdiction if, while the decedent's 
                estate is pending before the Secretary, the tribal 
                government referred to in paragraph (1) pays to the 
                Secretary, on behalf of such individual, the value of 
                such interest. The interest for which payment is made 
                under this subparagraph shall be held by the Secretary 
                in trust for the tribal government.
                    ``(B) Exception.--
                            ``(i) In general.--Subparagraph (A) shall 
                        not apply to any interest in trust or 
                        restricted land if, while the decedent's estate 
                        is pending before the Secretary, the ineligible 
                        non-Indian heir or devisee described in such 
                        subparagraph renounces the interest in favor of 
                        a person or persons who are otherwise eligible 
                        to inherit.
                            ``(ii) Reservation of life estate.--The 
                        non-Indian heir or devisee described in clause 
                        (i) may retain a life estate in the interest 
                        and convey the remaining interest to an Indian 
                        person.
                            ``(iii) Presumption.--In the absence of any 
                        express language to the contrary, a conveyance 
                        under clause (ii) is presumed to reserve to the 
                        life estate holder all income from the lease, 
                        use, rents, profits, royalties, bonuses, or 
                        sales of natural resources during the pendency 
                        of the life estate and any right to occupy the 
                        tract of land as a home.
                    ``(C) Payments.--With respect to payments by a 
                tribal government under subparagraph (A), the Secretary 
                shall--
                            ``(i) upon the request of the tribal 
                        government, allow a reasonable period of time, 
                        not to exceed 2 years, for the tribal 
                        government to make payments of amounts due 
                        pursuant to subparagraph (A); or
                            ``(ii) recognize alternative agreed upon 
                        exchanges of consideration between the 
                        ineligible non-Indian and the tribe in 
                        satisfaction of the payment under subparagraph 
                        (A).
    ``(d) Use of Proposed Findings by Tribal Justice Systems.--
            ``(1) Tribal justice system defined.--In this subsection, 
        the term `tribal justice system' has the meaning given that 
        term in section 3 of the Indian Tribal Justice Act (25 U.S.C. 
        3602).
            ``(2) Regulations.--The Secretary by regulation may provide 
        for the use of findings of fact and conclusions of law, as 
        rendered by a tribal justice system, as proposed findings of 
        fact and conclusions of law in the adjudication of probate 
        proceedings by the Department of the Interior.'';
            (4) by striking section 207 and inserting the following:

``SEC. 207. DESCENT AND DISTRIBUTION; ESCHEAT OF FRACTIONAL INTERESTS.

    ``(a) Testamentary Disposition.--
            ``(1) In general.--Except as provided in this section, 
        interests in trust or restricted land may be devised only to--
                    ``(A) the decedent's Indian spouse or any other 
                Indian person; or
                    ``(B) the Indian tribe with jurisdiction over the 
                land so devised.
            ``(2) Non-indian estate.--Any devise not described in 
        paragraph (1) shall create a non-Indian estate in Indian land 
        as provided for under subsection (c).
            ``(3) Joint tenancy with right of survivorship.--If a 
        testator devises interests in the same parcel of trust or 
        restricted land to more than 1 person, in the absence of 
        express language in the devise to the contrary, the devise 
        shall be presumed to create a joint tenancy with right of 
        survivorship.
    ``(b) Intestate Succession.--
            ``(1) In general.--Subject to paragraphs (2) and (3), with 
        respect to an interest in trust or restricted land passing by 
        intestate succession, only a spouse or heirs of the first or 
        second degree may inherit such an interest.
            ``(2) Non-indian estate.--Notwithstanding paragraph (1), a 
        non-Indian spouse or non-Indian heir of the first or second 
        degree may only receive a non-Indian estate in Indian land as 
        provided for under subsection (c).
            ``(3) Joint tenancy.--
                    ``(A) In general.--Unless modified by a tribal 
                probate code that is approved under section 206--
                            ``(i) any heirs of the first or second 
                        degree that inherit an interest that 
                        constitutes 5 percent or more of the undivided 
                        interest in a parcel of trust or restricted 
                        land, shall hold such interest as tenants in 
                        common; and
                            ``(ii) any heirs of the first or second 
                        degree that inherit an interest that 
                        constitutes less than 5 percent of the 
                        undivided interest in a parcel of trust or 
                        restricted land, shall hold such interest as 
                        joint tenants with the right of survivorship.
                    ``(B) Renouncing of rights.--The heirs who inherit 
                an interest as tenants in common with a right of 
                survivorship under subparagraph (A)(ii) may renounce 
their right of survivorship in favor of one or more of their co-owners.
            ``(4) Acquisition of interest by indian co-owners.--An 
        Indian co-owner of a parcel of trust or restricted land may 
        prevent the escheat of an interest in Indian lands for which 
        there is no legal heir by paying into the decedent's estate, 
        the fair market value of the interest in such land. If more 
        than 1 Indian co-owner offers to pay for such interest, the 
        highest bidder shall obtain the interest. If no such offer is 
        made, the interest will escheat to the tribe that exercises 
        jurisdiction over the land.
    ``(c) Non-Indian Estates.--
            ``(1) Rights of non-indian estate holders.--
                    ``(A) In general.--An individual who receives a 
                non-Indian estate in Indian land under subsection 
                (a)(2) or (b)(2)--
                            ``(i) shall receive a proportionate share 
                        of the proceeds of any lease, use, rents, 
                        profits, royalties, bonuses, or sale of natural 
                        resources based on their share of the 
                        decedent's interest in such land; and
                            ``(ii) may--
                                    ``(I) convey or deed by gift the 
                                decedent's interest in trust or 
                                restricted land to an Indian or the 
                                tribe with jurisdiction over the land; 
                                or
                                    ``(II) devise the decedent's 
                                interest to either an Indian or an 
                                Indian tribe as provided for in 
                                subsection (a)(1) or a non-Indian as 
                                provided for in subsection (a)(2).
                    ``(B) Decedent's interest.--In this section, the 
                term `decedent's interest' means the equitable title 
                held by the last Indian owner of an interest in trust 
                or restricted lands.
            ``(2) Escheat and intestate succession.--If the holder of a 
        non-Indian estate in Indian land dies without having devised or 
        conveyed the interest of the individual under paragraph 
        (1)(A)(ii), the decedent's interest in the trust or restricted 
        land involved shall--
                    ``(A) descend to the non-Indian estateholder's 
                Indian spouse or Indian heirs of the first or second 
                degree as provided for in subsection (b)(3); or
                    ``(B) in the case of a decedent that does not have 
                an Indian spouse or heir of the first or second degree, 
                descend to the Indian tribe having jurisdiction over 
                the trust or restricted lands.
            ``(3) Acquisition of interest by indian co-owners.--An 
        Indian co-owner of a parcel of trust or restricted land may 
        prevent the escheat of an interest to the tribe under paragraph 
        (2) by paying into the estate of the owner of a non-Indian 
        estate in Indian land the fair market value of the interest. If 
        more than 1 Indian co-owner offers to pay for such interest, 
        the highest bidder shall obtain the interest.
            ``(4) Devise of interest.--If the owner of a non-Indian 
        estate in Indian land devises the interest in such land to a 
        person who is not an Indian, at the discretion of the Secretary 
        and subject to the availability of appropriations, the 
        Secretary may, pursuant to section 213, acquire such interest, 
        with or without the consent of the devisee, by depositing the 
        value of the interest in the estate of the owner of the non-
        Indian estate in Indian land.
            ``(5) Rule of construction.--
                    ``(A) In general.--With respect to a decedent's 
                interest in trust or restricted lands under this 
                subsection, until such time as an Indian or an Indian 
                tribe acquires such interest through inheritance, 
                escheat, or conveyance, the Secretary shall be treated 
                as the holder of the remainder from the life estate.
                    ``(B) Limitation.--Subparagraph (A) shall not be 
                construed to authorize the Secretary to retain any of 
                the proceeds from the lease, use, rents, profits, 
                royalties, bonuses, or sale of natural resources with 
                respect to the trust or restricted lands involved.
            ``(6) Descent of off-reservation lands.--
                    ``(A) Indian reservation defined.--For purposes of 
                this paragraph, the term `Indian reservation' includes 
                lands located within--
                            ``(i)(I) Oklahoma; and
                            ``(II) the boundaries of an Indian tribe's 
                        former reservation (as defined and determined 
                        by the Secretary);
                            ``(ii) the boundaries of any Indian tribe's 
                        current or former reservation; or
                            ``(iii) any area where the Secretary is 
                        required to provide special assistance or 
                        consideration of a tribe's acquisition of land 
                        or interests in land.
                    ``(B) Descent.--Upon the death of an individual 
                holding an interest in trust or restricted lands that 
                are located outside the boundaries of an Indian 
                reservation and that are not subject to the 
                jurisdiction of any Indian tribe, that interest shall 
                descend either--
                            ``(i) by testate or intestate succession in 
                        trust to an Indian; or
                            ``(ii) in fee status to any other devises 
                        or heirs.
    ``(d) Approval of Agreements.--The official authorized to 
adjudicate the probate of trust or restricted lands shall have the 
authority to approve agreements between a decedent's heirs and devisees 
to consolidate interests in trust or restricted lands. The agreements 
referred to in the preceding sentence may include trust or restricted 
lands that are not a part of the decedent's estate that is the subject 
of the probate. The Secretary may promulgate regulations for the 
implementation of this subsection.
    ``(e) Estate Planning Assistance.--
            ``(1) In general.--The Secretary shall provide estate 
        planning assistance in accordance with this subsection, to the 
        extent amounts are appropriated for such purpose.
            ``(2) Requirements.--The estate planning assistance 
        provided under paragraph (1) shall be designed to--
                    ``(A) inform, advise, and assist Indian landowners 
                with respect to estate planning in order to facilitate 
                the transfer of trust or restricted lands to a devisee 
                or devisees selected by the landowners; and
                    ``(B) assist Indian landowners in accessing 
                information pursuant to section 217(g).
            ``(3) Contracts.--In carrying out this section, the 
        Secretary may enter into contracts with entities that have 
        expertise in Indian estate planning and tribal probate codes.
    ``(f) Notification to Indian Tribes and Owners of Trust or 
Restricted Lands.--
            ``(1) In general.--Not later than 180 days after the date 
        of enactment of the Indian Land Consolidation Act Amendments of 
        2000, the Secretary shall notify Indian tribes and owners of 
        trust or restricted lands of the amendments made by the Indian 
        Land Consolidation Act Amendments of 2000.
            ``(2) Specifications.--The notice required under paragraph 
        (1) shall be designed to inform Indian owners of trust or 
        restricted land of--
                    ``(A) the effect of this Act, with emphasis on the 
                effect of the provisions of this section, on the 
                testate disposition and intestate descent of their 
                interests in trust or restricted land; and
                    ``(B) estate planning options available to the 
                owners, including any opportunities for receiving 
                estate planning assistance or advice.
            ``(3) Requirements.--The Secretary shall provide the notice 
        required under paragraph (1)--
                    ``(A) by direct mail for those Indians with 
                interests in trust and restricted lands for which the 
                Secretary has an address for the interest holder;
                    ``(B) through the Federal Register;
                    ``(C) through local newspapers in areas with 
                significant Indian populations, reservation newspapers, 
                and newspapers that are directed at an Indian audience; 
                and
                    ``(D) through any other means determined 
                appropriate by the Secretary.
            ``(4) Certification.--After providing notice under this 
        subsection, the Secretary shall certify that the requirements 
        of this subsection have been met and shall publish notice of 
        such certification in the Federal Register.
            ``(5) Effective date.--The provisions of this section shall 
        not apply to the estate of an individual who dies prior to the 
        day that is 365 days after the Secretary makes the 
        certification required under paragraph (4).''; and
            (5) by adding at the end the following:

``SEC. 213. PILOT PROGRAM FOR THE ACQUISITION OF FRACTIONAL INTERESTS.

    ``(a) Acquisition by Secretary.--
            ``(1) In general.--The Secretary may acquire, at the 
        discretion of the Secretary and with the consent of the owner, 
        except as provided in section 207(c)(4), and at fair market 
        value, any fractional interest in trust or restricted lands.
            ``(2) Authority of secretary.--
                    ``(A) In general.--The Secretary shall have the 
                authority to acquire interests in trust or restricted 
                lands under this section during the 3-year period 
                beginning on the date of certification that is referred 
                to in section 207(f)(5).
                    ``(B) Required report.--Prior to expiration of the 
                authority provided for in subparagraph (A), the 
                Secretary shall submit the report required under 
                section 218 concerning whether the program to acquire 
                fractional interests should be extended or altered to 
                make resources available to Indian tribes and 
                individual Indian landowners.
            ``(3) Interests held in trust.--Subject to section 214, the 
        Secretary shall immediately hold interests acquired under this 
        Act in trust for the recognized tribal government that 
        exercises jurisdiction over the reservation.
    ``(b) Requirements.--In implementing subsection (a), the 
Secretary--
            ``(1) shall promote the policies provided for in section 3 
        of the Indian Land Consolidation Act Amendments of 2000;
            ``(2) may give priority to the acquisition of fractional 
        interests representing 2 percent or less of a parcel of trust 
        or restricted land, especially those interests that would have 
        escheated to a tribe but for the Supreme Court's decision in 
        Babbitt v. Youpee, (117 S Ct. 727 (1997));
            ``(3) to the extent practicable--
                    ``(A) shall consult with the reservation's 
                recognized tribal government in determining which 
                tracts to acquire on a reservation;
                    ``(B) shall coordinate the acquisition activities 
                with the reservation's recognized tribal government's 
                acquisition program, including a tribal land 
                consolidation plan approved pursuant to section 204; 
                and
                    ``(C) may enter into agreements (such agreements 
                will not be subject to the provisions of the Indian 
                Self-Determination and Education Assistance Act of 
                1974) with the reservation's recognized tribal 
                government or a subordinate entity of the tribal 
                government to carry out some or all of the Secretary's 
                land acquisition program; and
            ``(4) shall minimize the administrative costs associated 
        with the land acquisition program.
    ``(c) Sale of Interest to Indian Landowners.--
            ``(1) In general.--At the request of any Indian who owns at 
        least 5 percent of the undivided interest in a parcel of trust 
        or restricted land, the Secretary shall convey an interest 
        acquired under this section to the Indian landowner upon 
        payment by the Indian landowner of the amount paid for the 
        interest by the Secretary.
            ``(2) Limitations.--
                    ``(A) Tribal consent.--If an Indian tribe that has 
                jurisdiction over a parcel of trust or restricted land 
                owns 10 percent or more of the undivided interests in a 
                parcel of such land, such interest may only be acquired 
under paragraph (1) with the consent of such Indian tribe.
                    ``(B) Limitation.--With respect to a conveyance 
                under this subsection, the Secretary shall not approve 
                an application to terminate the trust status or remove 
                the restrictions of such an interest.

``SEC. 214. ADMINISTRATION OF ACQUIRED FRACTIONAL INTERESTS, 
              DISPOSITION OF PROCEEDS.

    ``(a) In General.--Subject to the conditions described in 
subsection (b)(1), an Indian tribe receiving a fractional interest 
under section 213 may, as a tenant in common with the other owners of 
the trust or restricted lands, lease the interest, sell the resources, 
consent to the granting of rights-of-way, or engage in any other 
transaction affecting the trust or restricted land authorized by law.
    ``(b) Conditions.--
            ``(1) In general.--The conditions described in this 
        paragraph are as follows:
                    ``(A) Except as provided in subsection (d), until 
                the purchase price paid by the Secretary for an 
                interest referred to in subsection (a) has been 
                recovered, any lease, resource sale contract, right-of-
                way, or other document evidencing a transaction 
                affecting the interest shall contain a clause providing 
                that all revenue derived from the interest shall be 
                paid to the Secretary.
                    ``(B) Subject to subparagraph (C), the Secretary 
                shall deposit any revenue derived under subparagraph 
                (A) into the Acquisition Fund created under section 
                216.
                    ``(C) The Secretary shall deposit any revenue that 
                is paid under subparagraph (A) that is in excess of the 
                purchase price of the fractional interest involved to 
                the credit of the Indian tribe that receives the 
                fractional interest under section 213 and the tribe 
                shall have access to such funds in the same manner as 
                other funds paid to the Secretary for the use of lands 
                held in trust for the tribe.
                    ``(D) Notwithstanding any other provision of law, 
                including section 16 of the Act of June 18, 1934 
                (commonly referred to as the `Indian Reorganization 
                Act') (48 Stat. 987, chapter 576; 25 U.S.C. 476), with 
                respect to any interest acquired by the Secretary under 
                section 213, the Secretary may approve a transaction 
                covered under this section on behalf of a tribe until--
                            ``(i) the Secretary makes any of the 
                        findings under paragraph (2)(A); or
                            ``(ii) an amount equal to the purchase 
                        price of that interest has been paid into the 
                        Acquisition Fund created under section 216.
            ``(2) Exception.--Paragraph (1)(A) shall not apply to any 
        revenue derived from an interest in a parcel of land acquired 
        by the Secretary under section 213 after--
                    ``(A) the Secretary makes a finding that--
                            ``(i) the costs of administering the 
                        interest will equal or exceed the projected 
                        revenues for the parcel involved;
                            ``(ii) in the discretion of the Secretary, 
                        it will take an unreasonable period of time for 
                        the parcel to generate revenue that equals the 
                        purchase price paid for the interest; or
                            ``(iii) a subsequent decrease in the value 
                        of land or commodities associated with the land 
                        make it likely that the interest will be unable 
                        to generate revenue that equals the purchase 
                        price paid for the interest in a reasonable 
                        time; or
                    ``(B) an amount equal to the purchase price of that 
                interest in land has been paid into the Acquisition 
                Fund created under section 216.
    ``(c) Effect on Indian Tribe.--
            ``(1) In general.--Paragraph (2) shall apply with respect 
        to any undivided interest in allotted land held by the 
        Secretary in trust for a tribe if a lease or agreement under 
        subsection (a) is otherwise applicable to such undivided 
        interest by reason of this section even though the Indian tribe 
        did not consent to the lease or agreement.
            ``(2) Application of lease.--The lease or agreement 
        described in paragraph (1) shall apply to the portion of the 
        undivided interest in allotted land described in such paragraph 
        (including entitlement of the Indian tribe to payment under the 
        lease or agreement), and the Indian tribe shall not be treated 
        as being a party to the lease or agreement. Nothing in this 
        section (or in the lease or agreement) shall be construed to 
        affect the sovereignty of the Indian tribe.

``SEC. 215. ESTABLISHING FAIR MARKET VALUE.

    ``(a) In General.--For purposes of this Act, the Secretary may 
develop a system for establishing the fair market value of various 
types of lands and improvements. Such a system may include 
determinations of fair market value based on appropriate geographic 
units as determined by the Secretary. Such system may govern the 
amounts offered for the purchase of interests in trust or restricted 
lands under section 213.
    ``(b) Rule of Construction.--Nothing in this section shall be 
construed to prevent the owner of an interest in trust or restricted 
lands from appealing a determination of fair market value made in 
accordance with this section.

``SEC. 216. ACQUISITION FUND.

    ``(a) In General.--The Secretary shall establish an Acquisition 
Fund to--
            ``(1) disburse appropriations authorized to accomplish the 
        purposes of section 213; and
            ``(2) collect all revenues received from the lease, permit, 
        or sale of resources from interests in trust or restricted 
        lands transferred to Indian tribes by the Secretary under 
        section 213.
    ``(b) Deposits; Use.--
            ``(1) In general.--Subject to paragraph (2), all proceeds 
        from leases, permits, or resource sales derived from an 
        interest in trust or restricted lands described in subsection 
        (a)(2) shall--
                    ``(A) be deposited in the Acquisition Fund; and
                    ``(B) as specified in advance in appropriations 
                Acts, be available for the purpose of acquiring 
                additional fractional interests in trust or restricted 
                lands.
            ``(2) Maximum deposits of proceeds.--With respect to the 
        deposit of proceeds derived from an interest under paragraph 
        (1), the aggregate amount deposited under that paragraph shall 
        not exceed the purchase price of that interest under section 
        213.

``SEC. 217. TRUST AND RESTRICTED LAND TRANSACTIONS.

    ``(a) Policy.--It is the policy of the United States to encourage 
and assist the consolidation of land ownership through transactions 
involving individual Indians and between Indians and a reservation's 
recognized tribal government in a manner consistent with the policy of 
maintaining the trust status of allotted lands. Nothing in this section 
shall be construed to apply to or to authorize the sale of trust or 
restricted lands to a person who is not an Indian.
    ``(b) Sales and Exchanges Between Indians and Between Indians and 
Indian Tribes.--
            ``(1) In general.--
                    ``(A) Estimate of value.--Notwithstanding any other 
                provision of law and only after the Indian selling or 
                exchanging an interest in land has been provided with 
                an estimate of the value of the interest of the Indian 
                pursuant to this section--
                            ``(i) the sale or exchange of an interest 
                        in trust or restricted land may be made for an 
                        amount that is less than the fair market value 
                        of that interest; and
                            ``(ii) the approval of a transaction that 
                        is in compliance with this section shall not 
                        constitute a breach of trust by the Secretary.
                    ``(B) Waiver of requirement.--The requirement for 
                an estimate of value under subparagraph (A) may be 
                waived in writing by an Indian selling or exchanging an 
                interest in land with an Indian person who is the 
                owner's spouse, brother, sister, lineal ancestor of 
                Indian blood, lineal descendant, or collateral heir.
            ``(2) Limitation.--For a period of 5 years after the 
        Secretary approves a conveyance pursuant to this subsection, 
        the Secretary shall not approve an application to terminate the 
        trust status or remove the restrictions of such an interest.
    ``(c) Acquisition of Interest by Secretary.--An Indian, or the 
recognized tribal government of a reservation, in possession of an 
interest in trust or restricted lands, at least a portion of which is 
in trust or restricted status on the date of enactment of the Indian 
Land Consolidation Act Amendments of 2000 and located within a 
reservation, may request that the interest be taken into trust by the 
Secretary. Upon such a request, the Secretary shall forthwith take such 
interest into trust.
    ``(d) Status of Lands.--The sale or exchange of an interest in 
trust or restricted land under this section shall not affect the status 
of that land as trust or restricted land.
    ``(e) Gift Deeds.--
            ``(1) In general.--An individual owner of an interest in 
        trust or restricted land may convey that interest by gift deed 
        to--
                    ``(A) an individual Indian; or
                    ``(B) the Indian tribe that exercises jurisdiction 
                over that land.
            ``(2) Special rule.--With respect to any gift deed conveyed 
        under this section, the Secretary shall not require an 
        appraisal and the transaction shall be consistent with this Act 
        and any other provision of Federal law.
    ``(f) No Termination.--During the 7-year period beginning on the 
date on which the Secretary approves a conveyance of an interest in 
trust or restricted land under subsection (e), the Secretary shall not 
approve an application to terminate the trust status of, or remove the 
restrictions on, such an interest.
    ``(g) Land Ownership Information.--Notwithstanding any other 
provision of law, the names and mailing addresses of the Indian owners 
of trust or restricted lands, and information on the location of the 
parcel and the percentage of undivided interest owned by each 
individual, or of any interest in trust or restricted lands, shall, 
upon written request, be made available to--
            ``(1) other Indian owners of interests in trust or 
        restricted lands within the same reservation;
            ``(2) the tribe that exercises jurisdiction over the 
        reservation where the parcel is located or any person who is 
        eligible for membership in that tribe; and
            ``(3) prospective applicants for the leasing, use, or 
        consolidation of such trust or restricted land or the interest 
        in trust or restricted lands.

``SEC. 218. REPORTS TO CONGRESS.

    ``(a) In General.--Prior to expiration of the authority provided 
for in section 213(a)(2)(A), the Secretary, after consultation with 
Indian tribes and other interested parties, shall submit to the 
Committee on Indian Affairs and the Committee on Energy and Natural 
Resources of the Senate and the Committee on Resources of the House of 
Representatives a report that indicates, for the period covered by the 
report--
            ``(1) the number of fractional interests in trust or 
        restricted lands acquired; and
            ``(2) the impact of the resulting reduction in the number 
        of such fractional interests on the financial and realty 
        recordkeeping systems of the Bureau of Indian Affairs.
    ``(b) Report.--The reports described in subsection (a) and section 
213(a) shall contain findings as to whether the program under this Act 
to acquire fractional interests in trust or restricted lands should be 
extended and whether such program should be altered to make resources 
available to Indian tribes and individual Indian landowners.

``SEC. 219. APPROVAL OF LEASES, RIGHTS-OF-WAY, AND SALES OF NATURAL 
              RESOURCES.

    ``(a) Approval by the Secretary.--
            ``(1) In general.--Notwithstanding any other provision of 
        law, the Secretary may approve any lease or agreement that 
        affects individually owned allotted land, if--
                    ``(A) the owners of not less than the applicable 
                percentage (determined under subsection (b)) of the 
                undivided interest in the allotted land that is covered 
                by the lease or agreement consent in writing to the 
                lease or agreement; and
                    ``(B) the Secretary determines that approving the 
                lease or agreement is in the best interest of the 
                owners of the undivided interest in the allotted land.
            ``(2) Rule of construction.--Nothing in this section shall 
        be construed to apply to leases involving coal or uranium.
    ``(b) Applicable Percentage.--
            ``(1) Percentage interest.--The applicable percentage 
        referred to in subsection (a)(1) shall be determined as 
        follows:
                    ``(A) If there are 5 or fewer owners of the 
                undivided interest in the allotted land, the applicable 
                percentage shall be 100 percent.
                    ``(B) If there are more than 5 such owners, but 
                fewer than 11 such owners, the applicable percentage 
                shall be 80 percent.
                    ``(C) If there are more than 10 such owners, but 
                fewer than 20 such owners, the applicable percentage 
                shall be 60 percent.
                    ``(D) If there are 20 or more such owners, the 
                applicable percentage shall be a majority of the 
                interests in the allotted land.
            ``(2) Determination of owners.--
                    ``(A) In general.--For purposes of this subsection, 
                in determining the number of owners of, and their 
                interests in, the undivided interest in the allotted 
                land with respect to a lease or agreement, the 
                Secretary shall make such determination based on the 
                records of the Department of the Interior that identify 
                the owners of such lands and their interests and the 
                number of owners of such land on the date on which the 
                lease or agreement involved is submitted to the 
                Secretary under this section.
                    ``(B) Rule of construction.--Nothing in 
                subparagraph (A) shall be construed to authorize the 
                Secretary to treat an Indian tribe as the owner of an 
                interest in allotted land that did not escheat to the 
                tribe pursuant to section 207 as a result of the 
                Supreme Court's decision in Babbitt v. Youpee, (117 S 
                Ct. 727 (1997)).
    ``(c) Authority of Secretary To Sign Lease or Agreement on Behalf 
of Certain Owners.--The Secretary may give written consent to a lease 
or agreement under subsection (a)--
            ``(1) on behalf of the individual Indian owner if the owner 
        is deceased and the heirs to, or devisees of, the interest of 
        the deceased owner have not been determined; or
            ``(2) on behalf of any heir or devisee referred to in 
        paragraph (1) if the heir or devisee has been determined but 
        cannot be located
    ``(d) Effect of Approval.--
            ``(1) Application to all parties.--
                    ``(A) In general.--Subject to paragraph (2), a 
                lease or agreement approved by the Secretary under 
                subsection (a) shall be binding on the parties 
                described in subparagraph (B), to the same extent as if 
                all of the owners of the undivided interest in allotted 
                land covered under the lease or agreement consented to 
                the lease or agreement.
                    ``(B) Description of parties.--The parties referred 
                to in subparagraph (A) are--
                            ``(i) the owners of the undivided interest 
                        in the allotted land covered under the lease or 
                        agreement referred to in such subparagraph; and
                            ``(ii) all other parties to the lease or 
                        agreement.
            ``(2) Effect on indian tribe.--
                    ``(A) In general.--Subparagraph (B) shall apply 
                with respect to any undivided interest in allotted land 
                held by the Secretary in trust for a tribe if a lease 
                or agreement under subsection (a) is otherwise 
                applicable to such undivided interest by reason of this 
                section even though the Indian tribe did not consent to 
                the lease or agreement.
                    ``(B) Application of lease.--The lease or agreement 
                described in subparagraph (A) shall apply to the 
                portion of the undivided interest in allotted land 
                described in such paragraph (including entitlement of 
                the Indian tribe to payment under the lease or 
                agreement), and the Indian tribe shall not be treated 
                as being a party to the lease or agreement. Nothing in 
                this section (or in the lease or agreement) shall be 
                construed to affect the sovereignty of the Indian 
                tribe.
    ``(e) Distribution of Proceeds.--
            ``(1) In general.--The proceeds derived from a lease or 
        agreement that is approved by the Secretary under subsection 
        (a) shall be distributed to all owners of undivided interest in 
        the allotted land covered under the lease or agreement.
            ``(2) Determination of amounts distributed.--The amount of 
        the proceeds under paragraph (1) that are distributed to each 
        owner under that paragraph shall be determined in accordance 
        with the portion of the undivided interest in the allotted land 
        covered under the lease or agreement that is owned by that 
        owner.
    ``(f) Rule of Construction.--Nothing in this section shall be 
construed to amend or modify the provisions of Public Law 105-188 (25 
U.S.C. 396 note), the American Indian Agricultural Resources Management 
Act (25 U.S.C. 3701 et seq.) or any other Act that provides specific 
standards for the percentage of ownership interest that must approve a 
lease or agreement on a specified reservation.

``SEC. 220. APPLICATION TO ALASKA.

    ``(a) Findings.--Congress find that--
            ``(1) numerous academic and governmental organizations have 
        studied the nature and extent of fractionated ownership of 
        Indian land outside of Alaska and have proposed solutions to 
        this problem; and
            ``(2) despite these studies, there has not been a 
        comparable effort to analyze the problem, if any, of 
        fractionated ownership in Alaska.
    ``(b) Application of Act to Alaska.--Except as provided in this 
section, this Act shall not apply to land located within Alaska.
    ``(c) Rule of Construction.--Nothing in this section shall be 
construed to constitute a ratification of any determination by any 
agency, instrumentality, or court of the United States that may support 
the assertion of tribal jurisdiction over allotment lands or interests 
in such land in Alaska.''.

SEC. 5. JUDICIAL REVIEW.

    Notwithstanding section 207(f)(5) of the Indian Land Consolidation 
Act (25 U.S.C. 2206(f)(5)), after the Secretary of Interior provides 
the certification required under section 207(f)(4) of such Act, the 
owner of an interest in trust or restricted land may bring an 
administrative action to challenge the application of such section 207 
to their interest in trust or restricted lands, and may seek judicial 
review of the final decision of the Secretary of Interior with respect 
to such challenge.

SEC. 6. AUTHORIZATION OF APPROPRIATIONS.

    There are authorized to be appropriated not to exceed $8,000,000 
for fiscal year 2001 and each subsequent fiscal year to carry out the 
provisions of this Act (and the amendments made by this Act) that are 
not otherwise funded under the authority provided for in any other 
provision of Federal law.

SEC. 7. CONFORMING AMENDMENTS.

    (a) Patents Held in Trust.--The Act of February 8, 1887 (24 Stat. 
388) is amended--
            (1) by repealing sections 1, 2, and 3 (25 U.S.C. 331, 332, 
        and 333); and
            (2) in the second proviso of section 5 (25 U.S.C. 348)--
                    (A) by striking ``and partition''; and
                    (B) by striking ``except'' and inserting ``except 
                as provided by the Indian Land Consolidation Act or a 
                tribal probate code approved under such Act and 
                except''.
    (b) Ascertainment of Heirs and Disposal of Allotments.--The Act of 
June 25, 1910 (36 Stat. 855) is amended--
            (1) in the first sentence of section 1 (25 U.S.C. 372), by 
        striking ``under'' and inserting ``under the Indian Land 
        Consolidation Act or a tribal probate code approved under such 
        Act and pursuant to''; and
            (2) in the first sentence of section 2 (25 U.S.C. 373), by 
        striking ``with regulations'' and inserting ``with the Indian 
        Land Consolidation Act or a tribal probate code approved under 
        such Act and regulations''.
    (c) Transfer of Lands.--Section 4 of the Act of June 18, 1934 (25 
U.S.C. 464) is amended by striking ``trust:'' and inserting ``trust, 
except as provided by the Indian Land Consolidation Act:''.

                                                       Calendar No. 714

106th CONGRESS

  2d Session

                                S. 1586

                          [Report No. 106-361]

_______________________________________________________________________

                                 A BILL

  To reduce the fractionated ownership of Indian lands, and for other 
                               purposes.

_______________________________________________________________________

                             July 26, 2000

                       Reported with an amendment
```