I

104TH CONGRESS

2D SESSION H. R. 4260

To require uniform appraisals of certain leaseholds of restricted Indian lands,

and for other purposes.

IN THE HOUSE OF REPRESENTATIVES

SEPTEMBER 27, 1996

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

Committee on Resources

A BILL

To require uniform appraisals of certain leaseholds of

restricted Indian lands, and for other purposes.

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

3 SECTION 1. AMENDMENT.

4 The Act entitled ‘‘An Act to authorize the leasing of

5 restricted Indian lands for public, religious, educational,

6 residential, business, and other purposes requiring the

7 grant of long-term leases’’, approved August 9, 1955 (25

8 U.S.C. 416 et seq.), is amended by adding at the end the

9 following new section:
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1 ‘‘SEC. 7. (a) Not more than 6 months before rent

2 for a residential leasehold of restricted Indian lands is es3 tablished or raised, the Bureau of Indian Affairs shall con4 tract with an independent MAI appraiser who shall pre5 pare a report which includes—

6 ‘‘(1) an estimate of the annual market rent of

7 the leasehold;

8 ‘‘(2) a narrative appraisal report of the lease9 hold which separately identifies the value of the

10 leased fee and the value of the leasehold interest;

11 and

12 ‘‘(3) a review of the equity position of the par13 ties to the lease.

14 ‘‘(b) Appraisals made under this section shall comply

15 with applicable requirements of the Uniform Standards of

16 Professional Appraisal Practice, and the Uniform Ap17 praisal Standards for Federal Land Acquisitions.

18 ‘‘(c) Contracts required under subsection (a) shall be

19 funded from amounts made available to the real estate

20 service budgets of Bureau of Indian Affairs regional of21 fices.

22 ‘‘(d) A residential lease of restricted Indian lands and

23 the corresponding report required under subsection (a)

24 shall be made available to the public not later than 2
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1 weeks after the date that the lease is approved by the Sec2 retary of the Interior.

3 ‘‘(e)(1) If a dispute arises regarding a residential

4 lease of restricted Indian lands, the lessee, the lessor, or

5 the Secretary of the Interior may elect to submit the dis6 pute to binding arbitration.

7 ‘‘(2) An arbitration under this subsection shall be

8 heard by an arbitration board consisting of—

9 ‘‘(A) one member selected by the lessee;

10 ‘‘(B) one member selected by the lessor; and

11 ‘‘(C) one member agreed upon by the members

12 selected pursuant to subparagraphs (A) and (B). If

13 the members selected pursuant to subparagraphs

14 (A) and (B) are unable to agree upon a third mem15 ber within 20 days after selection of the second

16 member, the senior judge of the Federal District

17 Court for the district where the leased premises are

18 located shall select the third member.

19 ‘‘(3) The administrative costs of an arbitration under

20 this subsection shall be shared equally by the lessee and

21 the lessor.

22 ‘‘(f) Prior to approving a residential lease or the as23 signment of a residential lease of restricted Indian lands,

24 the Secretary of the Interior shall ensure that all applica25 ble State laws relating to disclosure on real estate trans-
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1 actions have been complied with, including disclosure of

2 the nature and amount of any present or proposed assess3 ments or taxes.

4 ‘‘(g) For purposes of this section ‘MAI appraiser’

5 means a person who holds a current general membership

6 designation from the Appraisal Institute.’’.

7 SEC. 2. EFFECTIVE DATE.

8 This Act shall take effect on the first day of the first

9 fiscal year beginning after the date of the enactment of

10 this Act.

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