II 

108TH CONGRESS 

1ST SESSION S. 1696

To amend the Indian Self-Determination and Education Assistance Act to 

provide further self-governance by Indian tribes. 

IN THE SENATE OF THE UNITED STATES 

OCTOBER 1, 2003

Mr. CAMPBELL (for himself and Mr. INOUYE) introduced the following bill; 

which was read twice and referred to the Committee on Indian Affairs 

A BILL

To amend the Indian Self-Determination and Education Assistance Act to provide further self-governance by Indian 

tribes.

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

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Department of Health 

5 and Human Services Tribal Self-Governance Amendments 

6 Act of 2003’’. 

7 SEC. 2. AMENDMENT. 

8 The Indian Self-Determination and Education Assist9 ance Act is amended by striking title VI (25 U.S.C. 450f 

10 note; Public Law 93–638) and inserting the following: 
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1 ‘‘TITLE VI—TRIBAL SELF-GOV2 ERNANCE DEMONSTRATION 

3 PROJECT FOR THE DEPART4 MENT OF HEALTH AND 

5 HUMAN SERVICES 

6 ‘‘SEC. 601. DEFINITIONS. 

7 ‘‘In this title: 

8 ‘‘(1) COMPACT.—The term ‘compact’ means a 

9 compact under section 604. 

10 ‘‘(2) CONSTRUCTION PROJECT.—The term ‘con11 struction project’ has the meaning given the term in 

12 section 501. 

13 ‘‘(3) DEMONSTRATION PROJECT.—The term 

14 ‘demonstration project’ means the demonstration 

15 project under this title. 

16 ‘‘(4) FUNDING AGREEMENT.—The term ‘fund17 ing agreement’ means a funding agreement under 

18 section 604. 

19 ‘‘(5) INCLUDED PROGRAM.—The term ‘included 

20 program’ means a program that is eligible for inclu21 sion under a funding agreement under section 

22 604(c) (including any portion of such a program and 

23 any function, service, or activity performed under 

24 such a program). 
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1 ‘‘(6) INDIAN TRIBE.—The term ‘Indian tribe’, 

2 in a case in which an Indian tribe authorizes an3 other Indian tribe, an inter-tribal consortium, or a 

4 tribal organization to plan for or carry out an in5 cluded program on its behalf in accordance with sec6 tion 603(a)(3), includes the other authorized Indian 

7 tribe, inter-tribal consortium, or tribal organization. 

8 ‘‘(7) INTER-TRIBAL CONSORTIUM.—The term 

9 ‘inter-tribal consortium’ has the meaning given the 

10 term in section 501. 

11 ‘‘(8) SECRETARY.—The term ‘Secretary’ means 

12 the Secretary of Health and Human Services. 

13 ‘‘(9) SELF-GOVERNANCE.—The term ‘self-gov14 ernance’ has the meaning given the term in section 

15 501. 

16 ‘‘(10) TRIBAL SHARE.—The term ‘tribal share’ 

17 has the meaning given the term in section 501. 

18 ‘‘SEC. 602. ESTABLISHMENT OF DEMONSTRATION PROJECT. 

19 ‘‘(a) DEMONSTRATION.—For a period of not more 

20 than 5 years after the date of enactment of the Depart21 ment of Health and Human Services Tribal Self-Govern22 ance Amendments Act of 2003, the Secretary shall carry 

23 out a project to demonstrate the effectiveness of tribal op24 eration of the included programs under self-governance 

25 principles and authorities. 
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1 ‘‘(b) ADMINISTRATION.—The management and ad2 ministration of the demonstration project shall be in the 

3 Office of the Secretary. 

4 ‘‘SEC. 603. SELECTION OF PARTICIPATING INDIAN TRIBES. 

5 ‘‘(a) IN GENERAL.—

6 ‘‘(1) CONTINUING PARTICIPATION.—Not more 

7 than 50 Indian tribes that meet the eligibility cri8 teria specified in subsection (b) shall be entitled to 

9 participate in the demonstration project. 

10 ‘‘(2) ADDITIONAL PARTICIPANTS.—If more 

11 than 50 eligible Indian tribes request participation, 

12 the Secretary may select additional Indian tribes to 

13 participate in the demonstration project. 

14 ‘‘(3) OTHER AUTHORIZED INDIAN TRIBE, 

15 INTER-TRIBAL CONSORTIUM, OR TRIBAL GOVERN16 MENT.—If an Indian tribe authorizes another Indian 

17 tribe, an inter-tribal consortium, or a tribal organi18 zation to plan for or carry out an included program 

19 on its behalf under this title, the authorized Indian 

20 tribe, inter-tribal consortium, or tribal organization 

21 shall have the rights and responsibilities of the au22 thorizing Indian tribe (except as otherwise provided 

23 in the authorizing resolution). 

24 ‘‘(b) ELIGIBILITY.—An Indian tribe shall be eligible 

25 to participate in the demonstration project if the Indian 
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1 tribe, as of the date of enactment of the Department of 

2 Health and Human Services Tribal Self-Governance 

3 Amendments Act of 2003, is a party to a compact or fund4 ing agreement under this Act. 

5 ‘‘(c) SELECTION.—The Secretary shall select Indian 

6 tribes that request participation in the demonstration 

7 project by resolution or other official action by the gov8 erning body of each Indian tribe to be served. 

9 ‘‘(d) PLANNING AND NEGOTIATION GRANTS.—

10 ‘‘(1) IN GENERAL.—Subject to the availability 

11 of appropriations, the Secretary shall establish a 

12 program to allow Indian tribes that meet the eligi13 bility requirements of this title to be awarded a 

14 planning grant or negotiation grant, or both. 

15 ‘‘(2) RECEIPT OF GRANT NOT REQUIRED.—Re16 ceipt of a grant under paragraph (1) by an Indian 

17 tribe is not a requirement for the Indian tribe to 

18 participate in the demonstration project. 

19 ‘‘SEC. 604. COMPACTS AND FUNDING AGREEMENTS. 

20 ‘‘(a) IN GENERAL.—

21 ‘‘(1) NEW COMPACT AND FUNDING AGREE22 MENT.—Not later than 60 days after the date of 

23 submission by an Indian tribe of a request to par24 ticipate in the demonstration project, the Secretary 

25 shall negotiate and enter into a written compact and
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1 funding agreement with the Indian tribe in a man2 ner that is consistent with the trust responsibility 

3 of the Federal Government, treaty and statutory ob4 ligations, and the government-to-government rela5 tionship between Indian tribes and the United 

6 States. 

7 ‘‘(2) EXISTING COMPACT.—Rather than enter 

8 into a new compact under paragraph (1), an Indian 

9 tribe may use an existing compact negotiated under 

10 title V for purposes of the demonstration project. 

11 ‘‘(b) COMPACTS.—

12 ‘‘(1) CONTENTS.—A compact under subsection 

13 (a) shall designate—

14 ‘‘(A) congressional policies regarding tribal 

15 self-governance; 

16 ‘‘(B) the intent of the demonstration 

17 project; 

18 ‘‘(C) such terms as shall control from year 

19 to year; and 

20 ‘‘(D) any provisions of this title that are 

21 requested by the Indian tribe. 

22 ‘‘(2) EFFECTIVE DATE.—The effective date of a 

23 compact shall be the date of execution by the Indian 

24 tribe and the Secretary or another date agreed on by 

25 the parties. 
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1 ‘‘(3) DURATION.—A compact shall remain in 

2 effect so long as permitted by Federal law or until 

3 terminated by agreement of the parties. 

4 ‘‘(4) AMENDMENT.—A compact may be amend5 ed only by agreement of the parties. 

6 ‘‘(c) FUNDING AGREEMENTS.— 

7 ‘‘(1) SCOPE.—A funding agreement under sub8 section (a) shall, at the option of the Indian tribe, 

9 authorize the Indian tribe to plan, conduct, and ad10 minister included programs administered by the Sec11 retary through an agency of the Department of 

12 Health and Human Services, set forth in paragraphs 

13 (2) through (4). 

14 ‘‘(2) INITIAL INCLUDED PROGRAMS.—The fol15 lowing programs are eligible for inclusion in a fund16 ing agreement under this title: 

17 ‘‘(A) ADMINISTRATION ON AGING.—Grants 

18 for Native Americans under title VI of the 

19 Older Americans Act of 1965 (42 U.S.C. 3057 

20 et seq.). 

21 ‘‘(B) ADMINISTRATION FOR CHILDREN

22 AND FAMILIES.—

23 ‘‘(i) The tribal temporary assistance 

24 for needy families program under section 
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1 412(a)(1) of the Social Security Act (42 

2 U.S.C. 612(a)(1) et seq.). 

3 ‘‘(ii) The Low-Income Home Energy 

4 Assistance Program under the Low-Income 

5 Home Energy Assistance Act of 1981 (42 

6 U.S.C. 8621 et seq.). 

7 ‘‘(iii) The Community Services Block 

8 Grant Program under the Community 

9 Services Block Grant Act (42 U.S.C. 9901 

10 et seq.). 

11 ‘‘(iv) The Child Care and Develop12 ment Fund under the Child Care and De13 velopment Block Grant Act (42 U.S.C. 

14 9858 et seq.). 

15 ‘‘(v) The native employment works 

16 program under section 412(a)(2) of the 

17 Social Security Act (42 U.S.C. 612(a)(2)). 

18 ‘‘(vi) The Head Start Program under 

19 the Head Start Act (42 U.S.C. 9831 et 

20 seq.). 

21 ‘‘(vii) Child welfare services programs 

22 under part B of title IV of the Social Secu23 rity Act (42 U.S.C. 620 et seq.). 

24 ‘‘(viii) The promoting safe and stable 

25 families program under part B of title IV 
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1 of the Social Security Act (42 U.S.C. 620 

2 et seq.). 

3 ‘‘(ix) Family violence prevention 

4 grants for battered women’s shelters under 

5 the Family Violence Prevention and Serv6 ices Act (42 U.S.C. 10401 et seq.). 

7 ‘‘(C) SUBSTANCE ABUSE AND MENTAL

8 HEALTH SERVICES ADMINISTRATION.—Tar9 geted capacity expansion program under title V 

10 of the Public Health Service Act (42 U.S.C. 

11 290aa et seq.). 

12 ‘‘(D) BLOCK GRANTS REGARDING MENTAL

13 HEALTH AND SUBSTANCE ABUSE.—Mental 

14 health and substance abuse block grant pro15 grams under title XIX of the Public Health 

16 Services Act (42 U.S.C. 300x et seq.). 

17 ‘‘(E) HEALTH RESOURCES AND SERVICES

18 ADMINISTRATION.—Community health center 

19 grants under section 330 of the Public Health 

20 Service Act (42 U.S.C. 254b). 

21 ‘‘(3) ADDITIONAL INCLUDED PROGRAMS.—The 

22 Secretary may identify not more than 6 additional 

23 programs annually for inclusion in the demonstra24 tion project, including—
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1 ‘‘(A) all other programs in which Indian 

2 tribes are eligible to participate; 

3 ‘‘(B) all other programs for which Indians 

4 are eligible beneficiaries; and 

5 ‘‘(C) competitive grants for which an In6 dian tribe receives an individual or cooperative 

7 award, on the condition that the Indian tribe 

8 agree in the funding agreement to restrictions 

9 regarding program redesign and budget re10 allocation for any competitive awards. 

11 ‘‘(4) CONTENTS.—A funding agreement—

12 ‘‘(A) shall specify—

13 ‘‘(i) the services to be provided; 

14 ‘‘(ii) the functions to be performed; 

15 and 

16 ‘‘(iii) the responsibilities of the Indian 

17 tribe and the Secretary; 

18 ‘‘(B) shall provide for payment by the Sec19 retary to the Indian tribe of funds in accord20 ance with section 605; 

21 ‘‘(C) shall not allow the Secretary to waive, 

22 modify, or diminish in any way the trust re23 sponsibility of the United States with respect to 

24 Indian tribes and individual Indians that exist
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1 under treaties, Executive orders, and Acts of 

2 Congress; and 

3 ‘‘(D) shall allow for retrocession of in4 cluded programs under section 105(e). 

5 ‘‘SEC. 605. TRANSFER OF FUNDS. 

6 ‘‘(a) TRANSFER.—

7 ‘‘(1) IN GENERAL.—Under any compact or 

8 funding agreement entered into under this title, the 

9 Secretary shall transfer to the Indian tribe all funds 

10 provided for in the funding agreement. 

11 ‘‘(2) TIMING.—Unless the funding agreement 

12 provides otherwise, at the request of the Indian 

13 tribe—

14 ‘‘(A) funding shall be paid in 1 annual 

15 lump sum payment; and 

16 ‘‘(B) the transfer shall be made not later 

17 than 10 days after the apportionment of funds 

18 by the Office of Management and Budget to the 

19 Department of Health and Human Services. 

20 ‘‘(b) AMOUNT OF FUNDING.—

21 ‘‘(1) FUNDING FORMULAS.—

22 ‘‘(A) IN GENERAL.—Any statutory funding 

23 formula for an included program—

24 ‘‘(i) shall be waived for the dem25 onstration project under this title; and 
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1 ‘‘(ii) shall be used to determine the 

2 amount of funding provided to an Indian 

3 tribe. 

4 ‘‘(B) ADEQUACY.—Subject to the avail5 ability of appropriations—

6 ‘‘(i) the funding amount shall be ade7 quate to permit the successful implementa8 tion of the demonstration project; and 

9 ‘‘(ii) the Secretary and the partici10 pating Indian tribe shall determine the 

11 funding amount through negotiation. 

12 ‘‘(2) MATCHING REQUIREMENT.—An Indian 

13 tribe may request a waiver of any matching require14 ment applicable to an included program, and the 

15 Secretary shall liberally grant such reasonable waiv16 er requests. 

17 ‘‘(3) CONTRACT SUPPORT COSTS.—There shall 

18 be added to the amount required by paragraph (1) 

19 contract support costs as specified in paragraphs 

20 (2), (3), (5), and (6) of section 106(a). 

21 ‘‘(4) ADMINISTRATIVE FUND SHARES.—

22 ‘‘(A) IN GENERAL.—An Indian tribe may 

23 negotiate for a tribal share of administrative 

24 funds without regard to the organizational level 

25 at which the included programs are carried out. 
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1 ‘‘(B) INCLUSION.—A tribal share under 

2 subparagraph (A) shall include a share for 

3 training and technical assistance services per4 formed by a contractor. 

5 ‘‘SEC. 606. GENERAL PROVISIONS. 

6 ‘‘(a) REDESIGN, CONSOLIDATION, AND REALLOCA7 TION.—

8 ‘‘(1) IN GENERAL.—To the extent allowed 

9 under the statutory provisions of the included pro10 grams included in the funding agreement, and sub11 ject to the terms of the funding agreement, an In12 dian tribe may—

13 ‘‘(A) redesign or consolidate the included 

14 programs under the funding agreement if the 

15 Indian tribe agrees to abide by the statutory 

16 purposes of the program; and 

17 ‘‘(B) reallocate or redirect funds for the in18 cluded programs, among the included programs 

19 under the funding agreement, so long as all 

20 demonstration project costs using those funds 

21 meet allowable cost standards as required by 

22 section 506(c). 

23 ‘‘(2) WAIVERS.—

24 ‘‘(A) IN GENERAL.—At the request of an 

25 Indian tribe, if the Secretary determines that a 
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1 waiver would further the purposes of this Act, 

2 the Secretary shall grant a waiver of program 

3 requirements for the duration of the demonstra4 tion project to facilitate the ability of an Indian 

5 tribe to redesign included programs or reallo6 cate funds under paragraph (1). 

7 ‘‘(B) DOCUMENTATION.—The Secretary 

8 shall document all requests for a waiver under 

9 subparagraph (A), including a description of—

10 ‘‘(i) the reasons for each request; 

11 ‘‘(ii) the effect of the waiver on the 

12 Indian tribe making the request; and 

13 ‘‘(iii) the views of the Indian tribe re14 garding the requested waiver. 

15 ‘‘(b) INABILITY TO AGREE ON COMPACT OR FUND16 ING AGREEMENT.—

17 ‘‘(1) FINAL OFFER.—If the Secretary and an 

18 Indian tribe are unable to agree, in whole or in part, 

19 on the terms of a compact or funding agreement (in20 cluding funding levels), the Indian tribe may submit 

21 a final offer to the Secretary. 

22 ‘‘(2) DETERMINATION.—Not later than 45 days 

23 after the date of submission of a final offer, or as 

24 otherwise agreed to by the Indian tribe, the Sec-
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1 retary shall review and make a determination with 

2 respect to the final offer. 

3 ‘‘(3) NO TIMELY DETERMINATION.—If the Sec4 retary fails to make a determination with respect to 

5 a final offer within the time specified in paragraph 

6 (2), the Secretary shall be deemed to have agreed to 

7 the final offer. 

8 ‘‘(4) REJECTION OF FINAL OFFER.—

9 ‘‘(A) IN GENERAL.—If the Secretary re10 jects a final offer, the Secretary shall—

11 ‘‘(i) submit to the Indian tribe a writ12 ten statement clearly setting forth the rea13 sons for rejecting the final offer; and 

14 ‘‘(ii) provide the Indian tribe with a 

15 hearing on the record (except that the In16 dian tribe may, in lieu of such a hearing, 

17 file an appeal of the rejection to the Intra18 Departmental Council on Native American 

19 Affairs, the decision of which shall be final 

20 and not subject to judicial review). 

21 ‘‘(B) BURDEN OF PROOF.—In a hearing or 

22 appeal under subparagraph (A)(ii), the Sec23 retary shall have the burden of proving by clear 

24 and convincing evidence the validity of the 

25 grounds for rejecting the final offer.
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1 ‘‘(c) OTHER FUNDING.—Participation by an Indian 

2 tribe in the demonstration project under this title shall 

3 not affect the amount of funding that the Indian tribe 

4 would receive under the laws (including regulations) gov5 erning the included programs if the Indian tribe did not 

6 participate. 

7 ‘‘(d) DUPLICATION OF ELIGIBILITY.—To the max8 imum extent practicable, an Indian tribe shall make ef9 forts to coordinate with appropriate States to identify du10 ally eligible individuals to address the potential for the 

11 provision of duplicate benefits. 

12 ‘‘(e) APPEALS.—Except as provided in subsection 

13 (b)(2), a compact or funding agreement under this title 

14 shall be considered to be a contract for the purposes of 

15 section 110. 

16 ‘‘(f) REGULATIONS; OTHER AGENCY STATEMENTS.—

17 ‘‘(1) REGULATIONS.—An Indian tribe shall 

18 comply with final regulations for the included pro19 grams in connection with the demonstration project. 

20 ‘‘(2) OTHER AGENCY STATEMENTS.—Unless ex21 pressly agreed to by an Indian tribe in a compact or 

22 funding agreement, the Indian tribe shall not be 

23 subject to any agency circular, policy, manual, guid24 ance, or rule that is promulgated by regulation. 
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1 ‘‘(g) APPLICABILITY OF OTHER PROVISIONS.—The 

2 following provisions of this Act shall apply to a compact 

3 or funding agreements entered into under this title: 

4 ‘‘(1) Section 102(d). 

5 ‘‘(2) Section 506(b) (conflicts of interest). 

6 ‘‘(3) Section 506(c)(1) (Single Agency Audit 

7 Act). 

8 ‘‘(4) Section 506(c)(2) (cost principles). 

9 ‘‘(5) Section 506(c) (records). 

10 ‘‘(6) Section 507(c)(1)(A) (grounds for reject11 ing a final offers). 

12 ‘‘(7) Section 508(g) (prompt payment). 

13 ‘‘(8) Section 506(h) (nonduplication). 

14 ‘‘(9) Section 508(h) (interest or other income 

15 on transfers). 

16 ‘‘(10) Section 508(i) (carryover of funds). 

17 ‘‘(11) Section 509 (construction projects). 

18 ‘‘(12) Section 510 (Federal procurement laws). 

19 ‘‘(13) Section 512(b) (regulation waivers). 

20 ‘‘SEC. 607. REPORT. 

21 ‘‘(a) IN GENERAL.—The Secretary shall annually 

22 submit to Congress a report on the relative costs and bene23 fits of the demonstration project using evaluation and re24 porting data provided by participating Indian tribes. 

25 ‘‘(b) BASELINE MEASUREMENTS.—
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1 ‘‘(1) IN GENERAL.—A report under subsection 

2 (a) shall be based on baseline measurements devel3 oped jointly by the Secretary and participating In4 dian tribes. 

5 ‘‘(2) FINANCIAL ASSISTANCE.—The Secretary 

6 shall provide financial assistance to Indian tribes to 

7 assist Indian tribes in evaluating and reporting on 

8 the demonstration project. 

9 ‘‘(c) CONTENTS.—A report under subsection (a) 

10 shall—

11 ‘‘(1) verify that the participating Indian tribes 

12 met the statutory purposes of the included pro13 grams; 

14 ‘‘(2) confirm that key self-governance principles 

15 were carried out as Indian tribes operated the in16 cluded programs; and 

17 ‘‘(3) separately include Federal and tribal view18 points regarding—

19 ‘‘(A) the merger of included programs op20 erated under this title and self-governance prin21 ciples; and 

22 ‘‘(B) the impact on program beneficiaries. 
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1 ‘‘SEC. 608. AUTHORIZATION OF APPROPRIATIONS. 

2 ‘‘There are authorized to be appropriated such sums 

3 as are necessary to carry out this title, to remain available 

4 until expended.’’.

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