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[Congressional Bills 108th Congress]
[From the U.S. Government Publishing Office]
[S. 1721 Enrolled Bill (ENR)]

        S.1721

                       One Hundred Eighth Congress

                                 of the

                        United States of America

                          AT THE SECOND SESSION

          Begun and held at the City of Washington on Tuesday,
           the twentieth day of January, two thousand and four

                                 An Act

 
    To amend the Indian Land Consolidation Act to improve provisions 
    relating to probate of trust and restricted land, and for other 
                                purposes.

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

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``American Indian Probate Reform Act 
of 2004''.

SEC. 2. FINDINGS.

    Congress finds that--
        (1) the Act of February 8, 1887 (commonly known as the ``Indian 
    General Allotment Act'') (25 U.S.C. 331 et seq.), which authorized 
    the allotment of Indian reservations, did not permit Indian 
    allotment owners to provide for the testamentary disposition of the 
    land that was allotted to them;
        (2) that Act provided that allotments would descend according 
    to State law of intestate succession based on the location of the 
    allotment;
        (3) the reliance of the Federal Government on the State law of 
    intestate succession with respect to the descent of allotments has 
    resulted in numerous problems affecting Indian tribes, members of 
    Indian tribes, and the Federal Government, including--
            (A) the increasingly fractionated ownership of trust and 
        restricted land as that land is inherited by successive 
        generations of owners as tenants in common;
            (B) the application of different rules of intestate 
        succession to each interest of a decedent in or to trust or 
        restricted land if that land is located within the boundaries 
        of more than 1 State, which application--
                (i) makes probate planning unnecessarily difficult; and
                (ii) impedes efforts to provide probate planning 
            assistance or advice;
            (C) the absence of a uniform general probate code for trust 
        and restricted land, which makes it difficult for Indian tribes 
        to work cooperatively to develop tribal probate codes; and
            (D) the failure of Federal law to address or provide for 
        many of the essential elements of general probate law, either 
        directly or by reference, which--
                (i) is unfair to the owners of trust and restricted 
            land (and heirs and devisees of owners); and
                (ii) makes probate planning more difficult;
        (4) a uniform Federal probate code would likely--
            (A) reduce the number of fractionated interests in trust or 
        restricted land;
            (B) facilitate efforts to provide probate planning 
        assistance and advice and create incentives for owners of trust 
        and restricted land to engage in estate planning;
            (C) facilitate intertribal efforts to produce tribal 
        probate codes in accordance with section 206 of the Indian Land 
        Consolidation Act (25 U.S.C. 2205); and
            (D) provide essential elements of general probate law that 
        are not applicable on the date of enactment of this Act to 
        interests in trust or restricted land; and
        (5) the provisions of a uniform Federal probate code and other 
    forth in this Act should operate to further the policy of the 
    United States as stated in the Indian Land Consolidated Act 
    Amendments of 2000, Public Law 106-462, 102, November 7, 2000, 114 
    Stat. 1992.

SEC. 3. INDIAN PROBATE REFORM.

    (a) Nontestamentary Disposition.--Section 207 of the Indian Land 
Consolidation Act (25 U.S.C. 2206) is amended by striking subsection 
(a) and inserting the following:
    ``(a) Nontestamentary Disposition.--
        ``(1) Rules of descent.--Subject to any applicable Federal law 
    relating to the devise or descent of trust or restricted property, 
    any trust or restricted interest in land or interest in trust 
    personalty that is not disposed of by a valid will--
            ``(A) shall descend according to an applicable tribal 
        probate code approved in accordance with section 206; or
            ``(B) in the case of a trust or restricted interest in land 
        or interest in trust personalty to which a tribal probate code 
        does not apply, shall descend in accordance with--
                ``(i) paragraphs (2) through (5); and
                ``(ii) other applicable Federal law.
        ``(2) Rules governing descent of estate.--
            ``(A) Surviving spouse.--If there is a surviving spouse of 
        the decedent, such spouse shall receive trust and restricted 
        land and trust personalty in the estate as follows:
                ``(i) If the decedent is survived by 1 or more eligible 
            heirs described in subparagraph (B) (i), (ii), (iii), or 
            (iv), the surviving spouse shall receive \1/3\ of the trust 
            personalty of the decedent and a life estate without regard 
            to waste in the interests in trust or restricted lands of 
            the decedent.
                ``(ii) If there are no eligible heirs described in 
            subparagraph (B) (i), (ii), (iii), or (iv), the surviving 
            spouse shall receive all of the trust personalty of the 
            decedent and a life estate without regard to waste in the 
            trust or restricted lands of the decedent.
                ``(iii) The remainder shall pass as set forth in 
            subparagraph (B).
                ``(iv) Trust personalty passing to a surviving spouse 
            under the provisions of this subparagraph shall be 
            maintained by the Secretary in an account as trust 
            personalty, but only if such spouse is Indian.
            ``(B) Individual and tribal heirs.--Where there is no 
        surviving spouse of the decedent, or there is a remainder 
        interest pursuant to subparagraph (A), the trust or restricted 
        estate or such remainder shall, subject to subparagraphs (A) 
        and (D), pass as follows:
                ``(i) To those of the decedent's children who are 
            eligible heirs (or if 1 or more of such children do not 
            survive the decedent, the children of any such deceased 
            child who are eligible heirs, by right of representation, 
            but only if such children of the deceased child survive the 
            decedent) in equal shares.
                ``(ii) If the property does not pass under clause (i), 
            to those of the decedent's surviving great-grandchildren 
            who are eligible heirs, in equal shares.
                ``(iii) If the property does not pass under clause (i) 
            or (ii), to the decedent's surviving parent who is an 
            eligible heir, and if both parents survive the decedent and 
            are both eligible heirs, to both parents in equal shares.
                ``(iv) If the property does not pass under clause (i), 
            (ii), or (iii), to those of the decedent's surviving 
            siblings who are eligible heirs, in equal shares.
                ``(v) If the property does not pass under clause (i), 
            (ii), (iii), or (iv), to the Indian tribe with jurisdiction 
            over the interests in trust or restricted lands;
        except that notwithstanding clause (v), an Indian co-owner 
        (including the Indian tribe referred to in clause (v)) of a 
        parcel of trust or restricted land may acquire an interest that 
        would otherwise descend under that clause by paying into the 
        estate of the decedent, before the close of the probate of the 
        estate, the fair market value of the interest in the land; if 
        more than 1 Indian co-owner offers to pay for such interest, 
        the highest bidder shall acquire the interest.
            ``(C) No indian tribe.--
                ``(i) In general.--If there is no Indian tribe with 
            jurisdiction over the interests in trust or restricted 
            lands that would otherwise descend under subparagraph 
            (B)(v), then such interests shall be divided equally among 
            co-owners of trust or restricted interests in the parcel; 
            if there are no such co-owners, then to the United States, 
            provided that any such interests in land passing to the 
            United States under this subparagraph shall be sold by the 
            Secretary and the proceeds from such sale deposited into 
            the land acquisition fund established under section 216 (25 
            U.S.C. 2215) and used for the purposes described in 
            subsection (b) of that section.
                ``(ii) Contiguous parcel.--If the interests passing to 
            the United States under this subparagraph are in a parcel 
            of land that is contiguous to another parcel of trust or 
            restricted land, the Secretary shall give the owner or 
            owners of the trust or restricted interest in the 
            contiguous parcel the first opportunity to purchase the 
            interest at not less than fair market value determined in 
            accordance with this Act. If more than 1 such owner in the 
            contiguous parcel request to purchase the parcel, the 
            Secretary shall sell the parcel by public auction or sealed 
            bid (as determined by the Secretary) at not less than fair 
            market value to the owner of a trust or restricted interest 
            in the contiguous parcel submitting the highest bid.
            ``(D) Intestate descent of small fractional interests in 
        land.--
                ``(i) General rule.--Notwithstanding subparagraphs (A) 
            and (B), and subject to any applicable Federal law, any 
            trust or restricted interest in land in the decedent's 
            estate that is not disposed of by a valid will and 
            represents less than 5 percent of the entire undivided 
            ownership of the parcel of land of which such interest is a 
            part, as evidenced by the decedent's estate inventory at 
            the time of the heirship determination, shall descend in 
            accordance with clauses (ii) through (iv).
                ``(ii) Surviving spouse.--If there is a surviving 
            spouse, and such spouse was residing on a parcel of land 
            described in clause (i) at the time of the decedent's 
            death, the spouse shall receive a life estate without 
            regard to waste in the decedent's trust or restricted 
            interest in only such parcel, and the remainder interest in 
            that parcel shall pass in accordance with clause (iii).
                ``(iii) Single heir rule.--Where there is no life 
            estate created under clause (ii) or there is a remainder 
            interest under that clause, the trust or restricted 
            interest or remainder interest that is subject to this 
            subparagraph shall descend, in trust or restricted status, 
            to--

                    ``(I) the decedent's surviving child, but only if 
                such child is an eligible heir; and if 2 or more 
                surviving children are eligible heirs, then to the 
                oldest of such children;
                    ``(II) if the interest does not pass under 
                subclause (I), the decedent's surviving grandchild, but 
                only if such grandchild is an eligible heir; and if 2 
                or more surviving grandchildren are eligible heirs, 
                then to the oldest of such grandchildren;
                    ``(III) if the interest does not pass under 
                subclause (I) or (II), the decedent's surviving great 
                grandchild, but only if such great grandchild is an 
                eligible heir; and if 2 or more surviving great 
                grandchildren are eligible heirs, then to the oldest of 
                such great grandchildren;
                    ``(IV) if the interest does not pass under 
                subclause (I), (II), or (III), the Indian tribe with 
                jurisdiction over the interest; or
                    ``(V) if the interest does not pass under subclause 
                (I), (II), or (III), and there is no such Indian tribe 
                to inherit the property under subclause (IV), the 
                interest shall be divided equally among co-owners of 
                trust or restricted interests in the parcel; and if 
                there are no such co-owners, then to the United States, 
                to be sold, and the proceeds from sale used, in the 
                same manner provided in subparagraph (C).

        The determination of which person is the oldest eligible heir 
        for inheritance purposes under this clause shall be made by the 
        Secretary in the decedent's probate proceeding and shall be 
        consistent with the provisions of this Act.
                ``(iv) Exceptions.--Notwithstanding clause (iii)--

                    ``(I)(aa) the heir of an interest under clause 
                (iii), unless the heir is a minor or incompetent 
                person, may agree in writing entered into the record of 
                the decedent's probate proceeding to renounce such 
                interest, in trust or restricted status, in favor of--

                        ``(AA) any other eligible heir or Indian person 
                    related to the heir by blood, but in any case never 
                    in favor of more than 1 such heir or person;
                        ``(BB) any co-owner of another trust or 
                    restricted interest in such parcel of land; or
                        ``(CC) the Indian tribe with jurisdiction over 
                    the interest, if any; and

                    ``(bb) the Secretary shall give effect to such 
                agreement in the distribution of the interest in the 
                probate proceeding; and
                    ``(II) the governing body of the Indian tribe with 
                jurisdiction over an interest in trust or restricted 
                land that is subject to the provisions of this 
                subparagraph may adopt a rule of intestate descent 
                applicable to such interest that differs from the order 
                of decedent set forth in clause (iii). The Secretary 
                shall apply such rule to the interest in distributing 
                the decedent's estate, but only if--

                        ``(aa) a copy of the tribal rule is delivered 
                    to the official designated by the Secretary to 
                    receive copies of tribal rules for the purposes of 
                    this clause;
                        ``(bb) the tribal rule provides for the 
                    intestate inheritance of such interest by no more 
                    than 1 heir, so that the interest does not further 
                    fractionate;
                        ``(cc) the tribal rule does not apply to any 
                    interest disposed of by a valid will;
                        ``(dd) the decedent died on or after the date 
                    described in subsection (b) of section 8 of the 
                    American Indian Probate Act of 2004, or on or after 
                    the date on which a copy of the tribal rule was 
                    delivered to the Secretary pursuant to item (aa), 
                    whichever is later; and
                        ``(ee) the Secretary does not make a 
                    determination within 90 days after a copy of the 
                    tribal rule is delivered pursuant to item (aa) that 
                    the rule would be unreasonably difficult to 
                    administer or does not conform with the 
                    requirements in item (bb) or (cc).
                ``(v) Rule of construction.--This subparagraph shall 
            not be construed to limit a person's right to devise any 
            trust or restricted interest by way of a valid will in 
            accordance with subsection (b).
        ``(3) Right of representation.--If, under this subsection, all 
    or any part of the estate of a decedent is to pass to children of a 
    deceased child by right of representation, that part is to be 
    divided into as many equal shares as there are living children of 
    the decedent and pre-deceased children who left issue who survive 
    the decedent. Each living child of the decedent, if any, shall 
    receive 1 share, and the share of each pre-deceased child shall be 
    divided equally among the pre-deceased child's children.
        ``(4) Special rule relating to survival.--In the case of 
    intestate succession under this subsection, if an individual fails 
    to survive the decedent by at least 120 hours, as established by 
    clear and convincing evidence--
            ``(A) the individual shall be deemed to have predeceased 
        the decedent for the purpose of intestate succession; and
            ``(B) the heirs of the decedent shall be determined in 
        accordance with this section.
        ``(5) Status of inherited interests.--Except as provided in 
    paragraphs (2) (A) and (D) regarding the life estate of a surviving 
    spouse, a trust or restricted interest in land or trust personalty 
    that descends under the provisions of this subsection shall vest in 
    the heir in the same trust or restricted status as such interest 
    was held immediately prior to the decedent's death.''.
    (b) Testamentary Disposition.--Section 207 of the Indian Land 
Consolidation Act (25 U.S.C. 2206) is amended by striking subsection 
(b) and inserting the following:
    ``(b) Testamentary Disposition.--
        ``(1) General devise of an interest in trust or restricted 
    land.--
            ``(A) In general.--Subject to any applicable Federal law 
        relating to the devise or descent of trust or restricted land, 
        or a tribal probate code approved by the Secretary in 
        accordance with section 206, the owner of a trust or restricted 
        interest in land may devise such interest to--
                ``(i) any lineal descendant of the testator;
                ``(ii) any person who owns a preexisting undivided 
            trust or restricted interest in the same parcel of land;
                ``(iii) the Indian tribe with jurisdiction over the 
            interest in land; or
                ``(iv) any Indian;
        in trust or restricted status.
            ``(B) Rules of interpretation.--Any devise of a trust or 
        restricted interest in land pursuant to subparagraph (A) to an 
        Indian or the Indian tribe with jurisdiction over the interest 
        shall be deemed to be a devise of the interest in trust or 
        restricted status. Any devise of a trust or restricted interest 
        in land to a person who is only eligible to be a devisee under 
        clause (i) or (ii) of subparagraph (A) shall be presumed to be 
        a devise of the interest in trust or restricted status unless 
        language in such devise clearly evidences an intent on the part 
        of the testator that the interest is to pass as a life estate 
        or fee interest in accordance with paragraph (2)(A).
        ``(2) Devise of trust or restricted land as a life estate or in 
    fee.--
            ``(A) In general.--Except as provided under any applicable 
        Federal law, any trust or restricted interest in land that is 
        not devised in accordance with paragraph (1)(A) may be devised 
        only--
                ``(i) as a life estate to any person, with the 
            remainder being devised only in accordance with 
            subparagraph (B) or paragraph (1); or
                ``(ii) except as provided in subparagraph (B), as a fee 
            interest without Federal restrictions against alienation to 
            any person who is not eligible to be a devisee under clause 
            (iv) of paragraph (1)(A).
            ``(B) Indian reorganization act lands.--Any interest in 
        trust or restricted land that is subject to section 4 of the 
        Act of June 18, 1934 (25 U.S.C. 464), may be devised only in 
        accordance with--
                ``(i) that section;
                ``(ii) subparagraph (A)(i); or
                ``(iii) paragraph (1)(A);
        provided that nothing in this section or in section 4 of the 
        Act of June 18, 1934 (25 U.S.C. 464), shall be construed to 
        authorize the devise of any interest in trust or restricted 
        land that is subject to section 4 of that Act to any person as 
        a fee interest under subparagraph (A)(ii).
        ``(3) General devise of an interest in trust personalty.--
            ``(A) Trust personality defined.--The term `trust 
        personalty' as used in this section includes all funds and 
        securities of any kind which are held in trust in an individual 
        Indian money account or otherwise supervised by the Secretary.
            ``(B) In general.--Subject to any applicable Federal law 
        relating to the devise or descent of such trust personalty, or 
        a tribal probate code approved by the Secretary in accordance 
        with section 206, the owner of an interest in trust personalty 
        may devise such an interest to any person or entity.
            ``(C) Maintenance as trust personalty.--In the case of a 
        devise of an interest in trust personalty to a person or Indian 
        tribe eligible to be a devisee under paragraph (1)(A), the 
        Secretary shall maintain and continue to manage such interests 
        as trust personalty.
            ``(D) Direct disbursement and distribution.--In the case of 
        a devise of an interest in trust personalty to a person or 
        Indian tribe not eligible to be a devisee under paragraph 
        (1)(A), the Secretary shall directly disburse and distribute 
        such personalty to the devisee.
        ``(4) Invalid devises and wills.--
            ``(A) Land.--Any trust or restricted interest in land that 
        is not devised in accordance with paragraph (1) or (2) or that 
        is not disposed of by a valid will shall descend in accordance 
        with the applicable law of intestate succession as provided for 
        in subsection (a).
            ``(B) Personalty.--Any trust personalty that is not 
        disposed of by a valid will shall descend in accordance with 
        the applicable law of intestate succession as provided for in 
        subsection (a).''.
    (c) Joint Tenancy; Right of Survivorship.--Section 207(c) of the 
Indian Land Consolidation Act (25 U.S.C. 2206(c)) is amended by 
striking all that follows the heading, ``Joint Tenancy; Right of 
Survivorship'', and inserting the following:
        ``(1) Presumption of joint tenancy.--If a testator devises 
    trust or restricted interests in the same parcel of land to more 
    than 1 person, in the absence of clear and express language in the 
    devise stating that the interest is to pass to the devisees as 
    tenants in common, the devise shall be presumed to create a joint 
    tenancy with the right of survivorship in the interests involved.
        ``(2) Exception.--Paragraph (1) shall not apply to any devise 
    of an interest in trust or restricted land where the will in which 
    such devise is made was executed prior to the date that is 1 year 
    after the date on which the Secretary publishes the certification 
    required by section 8(a)(4) of the American Indian Probate Reform 
    Act of 2004.''.
    (d) Rule of Construction.--Section 207 of the Indian Land 
Consolidation Act (25 U.S.C. 2206) is amended by adding at the end the 
following:
    ``(h) Applicable Federal Law.--
        ``(1) In general.--Any references in subsections (a) and (b) to 
    applicable Federal law include--
            ``(A) Public Law 91-627 (84 Stat. 1874);
            ``(B) Public Law 92-377 (86 Stat. 530);
            ``(C) Public Law 92-443 (86 Stat. 744);
            ``(D) Public Law 96-274 (94 Stat. 537); and
            ``(E) Public Law 98-513 (98 Stat. 2411).
        ``(2) No effect on laws.--Nothing in this Act amends or 
    otherwise affects the application of any law described in paragraph 
    (1), or any other Federal law that pertains to--
            ``(A) trust or restricted land located on 1 or more 
        specific Indian reservations that are expressly identified in 
        such law; or
            ``(B) the allotted lands of 1 or more specific Indian 
        tribes that are expressly identified in such law.
    ``(i) Rules of Interpretation.--In the absence of a contrary 
intent, and except as otherwise provided under this Act, applicable 
Federal law, or a tribal probate code approved by the Secretary 
pursuant to section 206, wills shall be construed as to trust and 
restricted land and trust personalty in accordance with the following 
rules:
        ``(1) Construction that will passes all property.--A will shall 
    be construed to apply to all trust and restricted land and trust 
    personalty which the testator owned at his death, including any 
    such land or personalty acquired after the execution of his will.
        ``(2) Class gifts.--
            ``(A) No differentiation between relationship by blood and 
        relationship by affinity.--Terms of relationship that do not 
        differentiate relationships by blood from those by affinity, 
        such as `uncles', `aunts', `nieces', or `nephews', are 
        construed to exclude relatives by affinity. Terms of 
        relationship that do not differentiate relationships by the 
        half blood from those by the whole blood, such as `brothers', 
        `sisters', `nieces', or `nephews', are construed to include 
        both types of relationships.
            ``(B) Meaning of `heirs' and `next of kin', etc.; time of 
        ascertaining class.--A devise of trust or restricted interest 
        in land or an interest in trust personalty to the testator's or 
        another designated person's `heirs', `next of kin', 
        `relatives', or `family' shall mean those persons, including 
        the spouse, who would be entitled to take under the provisions 
        of this Act for nontestamentary disposition. The class is to be 
        ascertained as of the date of the testator's death.
            ``(C) Time for ascertaining class.--In construing a devise 
        to a class other than a class described in subparagraph (B), 
        the class shall be ascertained as of the time the devise is to 
        take effect in enjoyment. The surviving issue of any member of 
        the class who is then dead shall take by right of 
        representation the share which their deceased ancestor would 
        have taken.
        ``(3) Meaning of `die without issue' and similar phrases.--In 
    any devise under this chapter, the words `die without issue', `die 
    without leaving issue', `have no issue', or words of a similar 
    import shall be construed to mean that an individual had no lineal 
    descendants in his lifetime or at his death, and not that there 
    will be no lineal descendants at some future time.
        ``(4) Persons born out of wedlock.--In construing provisions of 
    this chapter relating to lapsed and void devises, and in construing 
    a devise to a person or persons described by relationship to the 
    testator or to another, a person born out of wedlock shall be 
    considered the child of the natural mother and also of the natural 
    father.
        ``(5) Lapsed devises.--Subject to the provisions of subsection 
    (b), where the testator devises or bequeaths a trust or restricted 
    interest in land or trust personalty to the testator's grandparents 
    or to the lineal descendent of a grandparent, and the devisee or 
    legatee dies before the testator leaving lineal descendents, such 
    descendents shall take the interest so devised or bequeathed per 
    stirpes.
        ``(6) Void devises.--Except as provided in paragraph (5), and 
    if the disposition shall not be otherwise expressly provided for by 
    a tribal probate code approved under section 206 (25 U.S.C. 2205), 
    if a devise other than a residuary devise of a trust or restricted 
    interest in land or trust personalty fails for any reason, such 
    interest shall become part of the residue and pass, subject to the 
    provisions of subsection (b), to the other residuary devisees, if 
    any, in proportion to their respective shares or interests in the 
    residue.
        ``(7) Family cemetery plot.--If a family cemetery plot owned by 
    the testator at his decease is not mentioned in the decedent's 
    will, the ownership of the plot shall descend to his heirs as if he 
    had died intestate.
    ``(j) Heirship by Killing.--
        ``(1) Heir by killing defined.--As used in this subsection, 
    `heir by killing' means any person who knowingly participates, 
    either as a principal or as an accessory before the fact, in the 
    willful and unlawful killing of the decedent.
        ``(2) No acquisition of property by killing.--Subject to any 
    applicable Federal law relating to the devise or descent of trust 
    or restricted land, no heir by killing shall in any way acquire any 
    trust or restricted interests in land or interests in trust 
    personalty as the result of the death of the decedent, but such 
    property shall pass in accordance with this subsection.
        ``(3) Descent, distribution, and right of survivorship.--The 
    heir by killing shall be deemed to have predeceased the decedent as 
    to decedent's trust or restricted interests in land or trust 
    personalty which would have passed from the decedent or his estate 
    to such heir--
            ``(A) under intestate succession under this section;
            ``(B) under a tribal probate code, unless otherwise 
        provided for;
            ``(C) as the surviving spouse;
            ``(D) by devise;
            ``(E) as a reversion or a vested remainder;
            ``(F) as a survivorship interest; and
            ``(G) as a contingent remainder or executory or other 
        future interest.
        ``(4) Joint tenants, joint owners, and joint obligees.--
            ``(A) Any trust or restricted land or trust personalty held 
        by only the heir by killing and the decedent as joint tenants, 
        joint owners, or joint obligees shall pass upon the death of 
        the decedent to his or her estate, as if the heir by killing 
        had predeceased the decedent.
            ``(B) As to trust or restricted land or trust personalty 
        held jointly by 3 or more persons, including both the heir by 
        killing and the decedent, any income which would have accrued 
        to the heir by killing as a result of the death of the decedent 
        shall pass to the estate of the decedent as if the heir by 
        killing had predeceased the decedent and any surviving joint 
        tenants.
            ``(C) Notwithstanding any other provision of this 
        subsection, the decedent's trust or restricted interest land or 
        trust personalty that is held in a joint tenancy with the right 
        of survivorship shall be severed from the joint tenancy as 
        though the property held in the joint tenancy were to be 
        severed and distributed equally among the joint tenants and the 
        decedent's interest shall pass to his estate; the remainder of 
        the interests shall remain in joint tenancy with right of 
        survivorship among the surviving joint tenants.
        ``(5) Life estate for the life of another.--If the estate is 
    held by a third person whose possession expires upon the death of 
    the decedent, it shall remain in such person's hands for the period 
    of time following the decedent's death equal to the life expectancy 
    of the decedent but for the killing.
        ``(6) Preadjudication rule.--
            ``(A) In general.--If a person has been charged, whether by 
        indictment, information, or otherwise by the United States, a 
        tribe, or any State, with voluntary manslaughter or homicide in 
        connection with a decedent's death, then any and all trust or 
        restricted land or trust personalty that would otherwise pass 
        to that person from the decedent's estate shall not pass or be 
        distributed by the Secretary until the charges have been 
        resolved in accordance with the provisions of this paragraph.
            ``(B) Dismissal or withdrawal.--Upon dismissal or 
        withdrawal of the charge, or upon a verdict of not guilty, such 
        land and personalty shall pass as if no charge had been filed 
        or made.
            ``(C) Conviction.--Upon conviction of such person, and the 
        exhaustion of all appeals, if any, the trust and restricted 
        land and trust personalty in the estate shall pass in 
        accordance with this subsection.
        ``(7) Broad construction; policy of subsection.--This 
    subsection shall not be considered penal in nature, but shall be 
    construed broadly in order to effect the policy that no person 
    shall be allowed to profit by his own wrong, wherever committed.
    ``(k) General Rules Governing Probate.--
        ``(1) Scope.--Except as provided under applicable Federal law 
    or a tribal probate code approved under section 206, the provisions 
    of this subsection shall govern the probate of estates containing 
    trust and restricted interests in land or trust personalty.
        ``(2) Pretermitted spouses and children.--
            ``(A) Spouses.--
                ``(i) In general.--Except as provided in clause (ii), 
            if the surviving spouse of a testator married the testator 
            after the testator executed the will of the testator, the 
            surviving spouse shall receive the intestate share in the 
            decedent's trust or restricted land and trust personalty 
            that the spouse would have received if the testator had 
            died intestate.
                ``(ii) Exception.--Clause (i) shall not apply to a 
            trust or restricted interest land where--

                    ``(I) the will of a testator is executed before the 
                date of enactment of this subparagraph;
                    ``(II)(aa) the spouse of a testator is a non-
                Indian; and
                    ``(bb) the testator devised the interests in trust 
                or restricted land of the testator to 1 or more 
                Indians;
                    ``(III) it appears, based on an examination of the 
                will or other evidence, that the will was made in 
                contemplation of the marriage of the testator to the 
                surviving spouse;
                    ``(IV) the will expresses the intention that the 
                will is to be effective notwithstanding any subsequent 
                marriage; or
                    ``(V)(aa) the testator provided for the spouse by a 
                transfer of funds or property outside the will; and
                    ``(bb) an intent that the transfer be in lieu of a 
                testamentary provision is demonstrated by statements of 
                the testator or through a reasonable inference based on 
                the amount of the transfer or other evidence.

                ``(iii) Spouses married at the time of the will.--
            Should the surviving spouse of the testator be omitted from 
            the will of the testator, the surviving spouse shall be 
            treated, for purposes of trust or restricted land or trust 
            personalty in the testator's estate, in accordance with the 
            provisions of section 207(a)(2)(A), as though there was no 
            will but only if--

                    ``(I) the testator and surviving spouse were 
                continuously married without legal separation for the 
                5-year period preceding the decedent's death;
                    ``(II) the testator and surviving spouse have a 
                surviving child who is the child of the testator;
                    ``(III) the surviving spouse has made substantial 
                payments toward the purchase of, or improvements to, 
                the trust or restricted land in such estate; or
                    ``(IV) the surviving spouse is under a binding 
                obligation to continue making loan payments for the 
                trust or restricted land for a substantial period of 
                time;

            except that, if there is evidence that the testator 
            adequately provided for the surviving spouse and any minor 
            children by a transfer of funds or property outside of the 
            will, this clause shall not apply.
            ``(B) Children.--
                ``(i) In general.--If a testator executed the will of 
            the testator before the birth or adoption of 1 or more 
            children of the testator, and the omission of the children 
            from the will is a product of inadvertence rather than an 
            intentional omission, the children shall share in the trust 
            or restricted interests in land and trust personalty as if 
            the decedent had died intestate.
                ``(ii) Adopted heirs.--Any person recognized as an heir 
            by virtue of adoption under the Act of July 8, 1940 (25 
            U.S.C. 372a), shall be treated as the child of a decedent 
            under this subsection.
                ``(iii) Adopted-out children.--

                    ``(I) In general.--For purposes of this Act, an 
                adopted person shall not be considered the child or 
                issue of his natural parents, except in distributing 
                the estate of a natural kin, other than the natural 
                parent, who has maintained a family relationship with 
                the adopted person. If a natural parent shall have 
                married the adopting parent, the adopted person for 
                purposes of inheritance by, from and through him shall 
                also be considered the issue of such natural parent.
                    ``(II) Eligible heir pursuant to other federal law 
                or tribal law.--Notwithstanding the provisions of 
                subparagraph (B)(iii)(I), other Federal laws and laws 
                of the Indian tribe with jurisdiction over the trust or 
                restricted interest in land may otherwise define the 
                inheritance rights of adopted-out children.

        ``(3) Divorce.--
            ``(A) Surviving spouse.--
                ``(i) In general.--An individual who is divorced from a 
            decedent, or whose marriage to the decedent has been 
            annulled, shall not be considered to be a surviving spouse 
            unless, by virtue of a subsequent marriage, the individual 
            is married to the decedent at the time of death of the 
            decedent.
                ``(ii) Separation.--A decree of separation that does 
            not dissolve a marriage, and terminate the status of 
            husband and wife, shall not be considered a divorce for the 
            purpose of this subsection.
                ``(iii) No effect on adjudications.--Nothing in clause 
            (i) shall prevent the Secretary from giving effect to a 
            property right settlement relating to a trust or restricted 
            interest in land or an interest in trust personalty if 1 of 
            the parties to the settlement dies before the issuance of a 
            final decree dissolving the marriage of the parties to the 
            property settlement.
            ``(B) Effect of subsequent divorce on a will or devise.--
                ``(i) In general.--If, after executing a will, a 
            testator is divorced or the marriage of the testator is 
            annulled, as of the effective date of the divorce or 
            annulment, any disposition of trust or restricted interests 
            in land or of trust personalty made by the will to the 
            former spouse of the testator shall be considered to be 
            revoked unless the will expressly provides otherwise.
                ``(ii) Property.--Property that is prevented from 
            passing to a former spouse of a decedent under clause (i) 
            shall pass as if the former spouse failed to survive the 
            decedent.
                ``(iii) Provisions of wills.--Any provision of a will 
            that is considered to be revoked solely by operation of 
            this subparagraph shall be revived by the remarriage of a 
            testator to the former spouse of the testator.
        ``(4) After-born heirs.--A child in gestation at the time of 
    decedent's death will be treated as having survived the decedent if 
    the child lives at least 120 hours after its birth.
        ``(5) Advancements of trust personalty during lifetime; effect 
    on distribution of estate.--
            ``(A) The trust personalty of a decedent who dies intestate 
        as to all or a portion of his or her estate, given during the 
        decedent's lifetime to a person eligible to be an heir of the 
        decedent under subsection (b)(2)(B), shall be treated as an 
        advancement against the heir's inheritance, but only if the 
        decedent declared in a contemporaneous writing, or the heir 
        acknowledged in writing, that the gift is an advancement or is 
        to be taken into account in computing the division and 
        distribution of the decedent's intestate estate.
            ``(B) For the purposes of this section, trust personalty 
        advanced during the decedent's lifetime is valued as of the 
        time the heir came into possession or enjoyment of the property 
        or as of the time of the decedent's death, whichever occurs 
        first.
            ``(C) If the recipient of the trust personalty predeceases 
        the decedent, the property shall not be treated as an 
        advancement or taken into account in computing the division and 
        distribution of the decedent's intestate estate unless the 
        decedent's contemporaneous writing provides otherwise.
        ``(6) Heirs related to decedent through 2 lines; single 
    share.--A person who is related to the decedent through 2 lines of 
    relationship is entitled to only a single share of the trust or 
    restricted land or trust personalty in the decedent's estate based 
    on the relationship that would entitle such person to the larger 
    share.
        ``(7) Notice.--
            ``(A) In general.--To the maximum extent practicable, the 
        Secretary shall notify each owner of trust and restricted land 
        of the provisions of this Act.
            ``(B) Combined notices.--The notice under subparagraph (A) 
        may, at the discretion of the Secretary, be provided with the 
        notice required under subsection (a) of
        section 8 of the American Indian Probate Reform Act of 2004.
        ``(8) Renunciation or disclaimer of interests.--
            ``(A) In general.--Any person 18 years of age or older may 
        renounce or disclaim an inheritance of a trust or restricted 
        interest in land or in trust personalty through intestate 
        succession or devise, either in full or subject to the 
        reservation of a life estate (where the interest is an interest 
        in land), in accordance with subparagraph (B), by filing a 
        signed and acknowledged declaration with the probate 
        decisionmaker prior to entry of a final probate order. No 
        interest so renounced or disclaimed shall be considered to have 
        vested in the renouncing or disclaiming heir or devisee, and 
        the renunciation or disclaimer shall not be considered to be a 
        transfer or gift of the renounced or disclaimed interest.
            ``(B) Eligible recipients of renounced or disclaimed 
        interests; notice to recipients.--
                ``(i) Interests in land.--A trust or restricted 
            interest in land may be renounced or disclaimed only in 
            favor of--

                    ``(I) an eligible heir;
                    ``(II) any person who would have been eligible to 
                be a devisee of the interest in question pursuant to 
                subsection (b)(1)(A) (but only in cases where the 
                renouncing person is a devisee of the interest under a 
                valid will); or
                    ``(III) the Indian tribe with jurisdiction over the 
                interest in question;

            and the interest so renounced shall pass to its recipient 
            in trust or restricted status.
                ``(ii) Trust personalty.--An interest in trust 
            personalty may be renounced or disclaimed in favor of any 
            person who would be eligible to be a devisee of such an 
            interest under subsection (b)(3) and shall pass to the 
            recipient in accordance with the provisions of that 
            subsection.
                ``(iii) Unauthorized renunciations and disclaimers.--
            Unless renounced or disclaimed in favor of a person or 
            Indian tribe eligible to receive the interest in accordance 
            with the provisions of this subparagraph, a renounced or 
            disclaimed interest shall pass as if the renunciation or 
            disclaimer had not been made.
            ``(C) Acceptance of interest.--A renunciation or disclaimer 
        of an interest filed in accordance with this paragraph shall be 
        considered accepted when implemented in a final order by a 
        decisionmaker, and shall thereafter be irrevocable. No 
        renunciation or disclaimer of an interest shall be included in 
        such order unless the recipient of the interest has been given 
        notice of the renunciation or disclaimer and has not refused to 
        accept the interest. All disclaimers and renunciations filed 
        and implemented in probate orders made effective prior to the 
        date of enactment of the American Indian Probate Reform Act of 
        2004 are hereby ratified.
            ``(D) Rule of construction.--Nothing in this paragraph 
        shall be construed to allow the renunciation of an interest 
        that is subject to the provisions of section 207(a)(2)(D) (25 
        U.S.C. 2206(a)(2)(D)) in favor of more than 1 person.
        ``(9) Consolidation agreements.--
            ``(A) In general.--During the pendency of probate, the 
        decisionmaker is authorized to approve written consolidation 
        agreements effecting exchanges or gifts voluntarily entered 
        into between the decedent's eligible heirs or devisees, to 
        consolidate interests in any tract of land included in the 
        decedent's trust inventory. Such agreements may provide for the 
        conveyance of interests already owned by such heirs or devisees 
        in such tracts, without having to comply with the Secretary's 
        rules and requirements otherwise applicable to conveyances by 
        deed of trust or restricted interests in land.
            ``(B) Effective.--An agreement approved under subparagraph 
        (A) shall be considered final when implemented in an order by a 
        decisionmaker. The final probate order shall direct any changes 
        necessary to the Secretary's land records, to reflect and 
        implement the terms of the approved agreement.
            ``(C) Effect on purchase option at probate.--Any interest 
        in trust or restricted land that is subject to a consolidation 
        agreement under this paragraph or section 207(e) (25 U.S.C. 
        2206(e)) shall not be available for purchase under section 
        207(p) (25 U.S.C. 2206(p)) unless the decisionmaker determines 
        that the agreement should not be approved.''.
SEC. 4. PARTITION OF HIGHLY FRACTIONATED INDIAN LANDS.
    Section 205 of the Indian Land Consolidation Act (25 U.S.C. 2204) 
(as amended by section 6(a)(2)) is amended by adding at the end the 
following:
    ``(d) Partition of Highly Fractionated Indian Lands.--
        ``(1) Applicability.--This subsection shall be applicable only 
    to parcels of land (including surface and subsurface interests, 
    except with respect to a subsurface interest that has been severed 
    from the surface interest, in which case this subsection shall 
    apply only to the surface interest) which the Secretary has 
    determined, pursuant to paragraph (2)(B), to be parcels of highly 
    fractionated Indian land.
        ``(2) Requirements.--Each partition action under this 
    subsection shall be conducted by the Secretary in accordance with 
    the following requirements:
            ``(A) Application.--Upon receipt of any payment or bond 
        required under subparagraph (B), the Secretary shall commence a 
        process for partitioning a parcel of land by sale in accordance 
        with the provisions of this subsection upon receipt of an 
        application by--
                ``(i) the Indian tribe with jurisdiction over the 
            subject land that owns an undivided interest in the parcel 
            of land; or
                ``(ii) any person owning an undivided interest in the 
            parcel of land who is eligible to bid at the sale of the 
            parcel pursuant to subclause (II), (III), or (IV) of 
            subparagraph (I)(i);
        provided that no such application shall be valid or considered 
        if it is received by the Secretary prior to the date that is 1 
        year after the date on which notice is published pursuant to 
        section 8(a)(4) of the American Indian Probate Reform Act of 
        2004.
            ``(B) Costs of serving notice and publication.--The costs 
        of serving and publishing notice under subparagraph (F) shall 
        be borne by the applicant. Upon receiving written notice from 
        the Secretary, the applicant must pay to the Secretary an 
        amount determined by the Secretary to be the estimated costs of 
        such service of notice and publication, or furnish a sufficient 
        bond for such estimated costs within the time stated in the 
        notice, failing which, unless an extension is granted by the 
        Secretary, the Secretary shall not be required to commence the 
        partition process under subparagraph (A) and may deny the 
        application. The Secretary shall have the discretion and 
        authority in any case to waive either the payment or the bond 
        (or any portion of such payment or bond) otherwise required by 
        this subparagraph, upon making a determination that such waiver 
        will further the policies of this Act.
            ``(C) Determination.--Upon receipt of an application 
        pursuant to subparagraph (A), the Secretary shall determine 
        whether the subject parcel meets the requirements set forth in 
        section 202(6) (25 U.S.C. 2201(6)) to be classified as a parcel 
        of highly fractionated Indian land.
            ``(D) Consent requirements.--
                ``(i) In general.--A parcel of land may be partitioned 
            under this subsection only if the applicant obtains the 
            written consent of--

                    ``(I) the Indian tribe with jurisdiction over the 
                subject land if such Indian tribe owns an undivided 
                interest in the parcel;
                    ``(II) any owner who, for the 3-year period 
                immediately preceding the date on which the Secretary 
                receives the application, has

                        ``(aa) continuously maintained a bona fide 
                    residence on the parcel; or
                        ``(bb) operated a bona fide farm, ranch, or 
                    other business on the parcel; and

                    ``(III) the owners (including parents of minor 
                owners and legal guardians of incompetent owners) of at 
                least 50 percent of the undivided interests in the 
                parcel, but only in cases where the Secretary 
                determines that, based on the final appraisal prepared 
                pursuant to subparagraph (F), any 1 owner's total 
                undivided interest in the parcel (not including the 
                interest of an Indian tribe or that of the owner 
                requesting the partition) has a value in excess of 
                $1,500.

            Any consent required by this clause must be in writing and 
            acknowledged before a notary public (or other official 
            authorized to make acknowledgments), and shall be approved 
            by Secretary unless the Secretary has reason to believe 
            that the consent was obtained as a result of fraud or undue 
            influence.
                ``(ii) Consent by the secretary on behalf of certain 
            individuals.--For the purposes of clause (i)(III), the 
            Secretary may consent on behalf of--

                    ``(I) undetermined heirs of trust or restricted 
                interests and owners of such interests who are minors 
                and legal incompetents having no parents or legal 
                guardian; and
                    ``(II) missing owners or owners of trust or 
                restricted interests whose whereabouts are unknown, but 
                only after a search for such owners has been completed 
                in accordance with the provisions of this subsection.

            ``(E) Appraisal.--After the Secretary has determined that 
        the subject parcel is a parcel of highly fractionated Indian 
        land pursuant to subparagraph (C), the Secretary shall cause to 
        be made, in accordance with the provisions of this Act for 
        establishing fair market value, an appraisal of the fair market 
        value of the subject parcel.
            ``(F) Notice to owners on completion of appraisal.--Upon 
        completion of the appraisal, the Secretary shall give notice of 
        the requested partition and appraisal to all owners of 
        undivided interests in the parcel, in accordance with 
        principles of due process. Such notice shall include the 
        following requirements:
                ``(i) Written notice.--The Secretary shall attempt to 
            give each owner written notice of the partition action 
            stating the following:

                    ``(I) That a proceeding to partition the parcel of 
                land by sale has been commenced.
                    ``(II) The legal description of the subject parcel.
                    ``(III) The owner's ownership interest in the 
                subject parcel as evidenced by the Secretary's records 
                as of the date that owners are determined in accordance 
                with clause (ii).
                    ``(IV) The results of the appraisal.
                    ``(V) The owner's right to receive a copy of the 
                appraisal upon written request.
                    ``(VI) The owner's right to comment on or object to 
                the proposed partition and the appraisal.
                    ``(VII) That the owner must timely comment on or 
                object in writing to the proposed partition or the 
                appraisal, in order to receive notice of approval of 
                the appraisal and right to appeal.
                    ``(VIII) The date by which the owner's written 
                comments or objections must be received, which shall 
                not be less than 90 days after the date that the notice 
                is mailed under this clause or last published under 
                clause (ii)(II).
                    ``(IX) The address for requesting copies of the 
                appraisal and for submitting written comments or 
                objections.
                    ``(X) The name and telephone number of the official 
                to be contacted for purposes of obtaining information 
                regarding the proceeding, including the time and date 
                of the auction of the land or the date for submitting 
                sealed bids.
                    ``(XI) Any other information the Secretary deems to 
                be appropriate.

                ``(ii) Manner of service.--

                    ``(I) Service by certified mail.--The Secretary 
                shall use due diligence to provide all owners of 
                interests in the subject parcel, as evidenced by the 
                Secretary's records at the time of the determination 
                under subparagraph (C), with actual notice of the 
                partition proceedings by mailing a copy of the written 
                notice described in clause (i) by certified mail, 
                restricted delivery, to each such owner at the owner's 
                last known address. For purposes of this subsection, 
                owners shall be determined from the Secretary's land 
                title records as of the date of the determination under 
                subparagraph (C) or a date that is not more than 90 
                days prior to the date of mailing under this clause, 
                whichever is later. In the event the written notice to 
                an owner is returned undelivered, the Secretary shall 
                attempt to obtain a current address for such owner by 
                conducting a reasonable search (including a reasonable 
                search of records maintained by local, State, Federal 
                and tribal governments and agencies) and by inquiring 
                with the Indian tribe with jurisdiction over the 
                subject parcel, and, if different from that tribe, the 
                Indian tribe of which the owner is a member, and, if 
                successful in locating any such owner, send written 
                notice by certified mail in accordance with this 
                subclause.
                    ``(II) Notice by publication.--The Secretary shall 
                give notice by publication of the partition proceedings 
                to all owners that the Secretary was unable to serve 
                pursuant to subclause (I), and to unknown heirs and 
                assigns by--

                        ``(aa) publishing the notice described in 
                    clause (i) at least 2 times in a newspaper of 
                    general circulation in the county or counties where 
                    the subject parcel of land is located or, if there 
                    is an Indian tribe with jurisdiction over the 
                    parcel of land and that tribe publishes a tribal 
                    newspaper or newsletter at least once every month, 
                    1 time in such newspaper of general circulation and 
                    1 time in such tribal newspaper or newsletter;
                        ``(bb) posting such notice in a conspicuous 
                    place in the tribal headquarters or administration 
                    building (or such other tribal building determined 
                    by the Secretary to be most appropriate for giving 
                    public notice) of the Indian tribe with 
                    jurisdiction over the parcel of land, if any; and
                        ``(cc) in addition to the foregoing, in the 
                    Secretary's discretion, publishing notice in any 
                    other place or means that the Secretary determines 
                    to be appropriate.
            ``(G) Review of comments on appraisal.--
                ``(i) In general.--After reviewing and considering 
            comments or information timely submitted by any owner of an 
            interest in the parcel in response to the notice required 
            under subparagraph (F), the Secretary may, consistent with 
            the provisions of this Act for establishing fair market 
            value--

                    ``(I) order a new appraisal; or
                    ``(II) approve the appraisal;

        provided that if the Secretary orders a new appraisal under 
        subclause (I), notice of the new appraisal shall be given as 
        specified in clause (ii).
                ``(ii) Notice.--Notice shall be given--

                    ``(I) in accordance with subparagraph (H), where 
                the new appraisal results in a higher valuation of the 
                land; or
                    ``(II) in accordance with subparagraph (F)(ii), 
                where the new appraisal results in a lower valuation of 
                the land.

            ``(H) Notice to owners of approval of appraisal and right 
        to appeal.--Upon making the determination under subparagraph 
        (G), the Secretary shall provide to the Indian tribe with 
        jurisdiction over the subject land and to all persons who 
        submitted written comments on or objections to the proposed 
        partition or appraisal, a written notice to be served on such 
        tribe and persons by certified mail. Such notice shall state--
                ``(i) the results of the appraisal;
                ``(ii) that the owner has the right to review a copy of 
            the appraisal upon request;
                ``(iii) that the land will be sold for not less than 
            the appraised value, subject to the consent requirements 
            under paragraph (2)(D);
                ``(iv) the time of the sale or for submitting bids 
            under subparagraph (I);
                ``(v) that the owner has the right, under the 
            Secretary's regulations governing administrative appeals, 
            to pursue an administrative appeal from--

                    ``(I) the determination that the land may be 
                partitioned by sale under the provisions of this 
                section; and
                    ``(II) the Secretary's order approving the 
                appraisal;

                ``(vi) the date by which an administrative appeal must 
            be taken, a citation to the provisions of the Secretary's 
            regulations that will govern the owner's appeal, and any 
            other information required by such regulations to be given 
            to parties affected by adverse decisions of the Secretary;
                ``(vii) in cases where the Secretary determines that 
            any person's undivided trust or restricted interest in the 
            parcel exceeds $1,500 pursuant to paragraph (2)(D)(iii), 
            that the Secretary has authority to consent to the 
            partition on behalf of undetermined heirs of trust or 
            restricted interests in the parcel and owners of such 
            interests whose whereabouts are unknown; and
                ``(viii) any other information the Secretary deems to 
            be appropriate.
            ``(I) Sale to eligible purchaser.--
                ``(i) In general.--Subject to clauses (ii) and (iii) 
            and the consent requirements of paragraph (2)(D), the 
            Secretary shall, after providing notice to owners under 
            subparagraph (H), including the time and place of sale or 
            for receiving sealed bids, at public auction or by sealed 
            bid (whichever of such methods of sale the Secretary 
            determines to be more appropriate under the circumstances) 
            sell the parcel of land by competitive bid for not less 
            than the final appraised fair market value to the highest 
            bidder from among the following eligible bidders:

                    ``(I) The Indian tribe, if any, with jurisdiction 
                over the trust or restricted interests in the parcel 
                being sold.
                    ``(II) Any person who is a member, or is eligible 
                to be a member, of the Indian tribe described in 
                subclause (I).
                    ``(III) Any person who is a member, or is eligible 
                to be a member, of an Indian tribe but not of the tribe 
                described in subclause (I), but only if such person 
                already owns an undivided interest in the parcel at the 
                time of sale.
                    ``(IV) Any lineal descendent of the original 
                allottee of the parcel who is a member or is eligible 
                to be a member of an Indian tribe or, with respect to a 
                parcel located in the State of California that is not 
                within an Indian tribe's reservation or not otherwise 
                subject to the jurisdiction of an Indian tribe, who is 
                a member, or eligible to be a member, of an Indian 
                tribe or owns a trust or restricted interest in the 
                parcel.

                ``(ii) Right to match highest bid.--If the highest 
            bidder is a person who is only eligible to bid under clause 
            (i)(III), the Indian tribe that has jurisdiction over the 
            parcel, if any, shall have the right to match the highest 
            bid and acquire the parcel, but only if--

                    ``(I) prior to the date of the sale, the governing 
                body of such tribe has adopted a tribal law or 
                resolution reserving its right to match the bids of 
                such nonmember bidders in partition sales under this 
                subsection and delivered a copy of such law or 
                resolution to the Secretary; and
                    ``(II) the parcel is not acquired under clause 
                (iii).

                ``(iii) Right to purchase.--Any person who is a member, 
            or eligible to be a member, of the Indian tribe with 
            jurisdiction over the trust or restricted interests in the 
            parcel being sold and is, as of the time of sale under this 
            subparagraph, the owner of the largest undivided interest 
            in the parcel shall have a right to purchase the parcel by 
            tendering to the Secretary an amount equal to the highest 
            sufficient bid submitted at the sale, less that amount of 
            the bid attributable to such owner's share, but only if--

                    ``(I) the owner submitted a sufficient bid at the 
                sale;
                    ``(II) the owner's total undivided interest in the 
                parcel immediately prior to the sale was--

                        ``(aa) greater than the undivided interest held 
                    by any other co-owners, except where there are 2 or 
                    more co-owners whose interests are of equal size 
                    but larger than the interests of all other co-
                    owners and such owners of the largest interests 
                    have agreed in writing that 1 of them may exercise 
                    the right of purchase under this clause; and
                        ``(bb) equal to or greater than 20 percent of 
                    the entire undivided ownership of the parcel;

                    ``(III) within 3 days following the date of the 
                auction or for receiving sealed bids, and in accordance 
                with the regulations adopted to implement this section, 
                the owner delivers to the Secretary a written notice of 
                intent to exercise the owner's rights under this 
                clause; and
                    ``(IV) such owner tenders the amount of the 
                purchase price required under this clause--

                        ``(aa) not less than 30 days after the date of 
                    the auction or time for receiving sealed bids; and
                        ``(bb) in accordance with any requirements of 
                    the regulations promulgated to implement this 
                    section.
                ``(iv) Interest acquired.--A purchaser of a parcel of 
            land under this subparagraph shall acquire title to the 
            parcel in trust or restricted status, free and clear of any 
            and all claims of title or ownership of all persons or 
            entities (not including the United States) owning or 
            claiming to own an interest in such parcel prior to the 
            time of sale.
            ``(J) Proceeds of sale.--
                ``(i) Subject to clauses (ii) and (iii), the Secretary 
            shall distribute the proceeds of sale of a parcel of land 
            under the provisions of this section to the owners of 
            interests in such parcel in proportion to their respective 
            ownership interests.
                ``(ii) Proceeds attributable to the sale of trust or 
            restricted interests shall be maintained in accounts as 
            trust personalty.
                ``(iii) Proceeds attributable to the sale of interests 
            of owners whose whereabouts are unknown, of undetermined 
            heirs, and of other persons whose ownership interests have 
            not been recorded shall be held by the Secretary until such 
            owners, heirs, or other persons have been determined, at 
            which time such proceeds shall be distributed in accordance 
            with clauses (i) and (ii).
            ``(K) Lack of bids or consent.--
                ``(i) Lack of bids.--If no bidder described in 
            subparagraph (I) presents a bid that equals or exceeds the 
            final appraised value, the Secretary may either--

                    ``(I) purchase the parcel of land for its appraised 
                fair market value on behalf of the Indian tribe with 
                jurisdiction over the land, subject to the lien and 
                procedures provided under section 214(b) (25 U.S.C. 
                2213(b)); or
                    ``(II) terminate the partition process.

                ``(ii) Lack of consent.--If an applicant fails to 
            obtain any applicable consent required under the provisions 
            of subparagraph (D) by the date established by the 
            Secretary prior to the proposed sale, the Secretary may 
            either extend the time for obtaining any such consent or 
            deny the request for partition.
        ``(3) Enforcement.--
            ``(A) In general.--If a partition is approved under this 
        subsection and an owner of an interest in the parcel of land 
        refuses to surrender possession in accordance with the 
        partition decision, or refuses to execute any conveyance 
        necessary to implement the partition, then any affected owner 
        or the United States may--
                ``(i) commence a civil action in the United States 
            district court for the district in which the parcel of land 
            is located; and
                ``(ii) request that the court issue an order for 
            ejectment or any other appropriate remedy necessary for the 
            partition of the land by sale.
            ``(B) Federal role.--With respect to any civil action 
        brought under subparagraph (A)--
                ``(i) the United States--

                    ``(I) shall receive notice of the civil action; and
                    ``(II) may be a party to the civil action; and

                ``(ii) the civil action shall not be dismissed, and no 
            relief requested shall be denied, on the ground that the 
            civil action is against the United States or that the 
            United States is a necessary and indispensable party.
        ``(4) Grants and loans.--The Secretary may provide grants and 
    low interest loans to successful bidders at sales authorized by 
    this subsection, provided that--
            ``(A) the total amount of such assistance in any such sale 
        shall not exceed 20 percent of the appraised value of the 
        parcel of land sold; and
            ``(B) the grant or loan funds provided shall only be 
        applied toward the purchase price of the parcel of land sold.
        ``(5) Regulations.--The Secretary is authorized to adopt such 
    regulations as may be necessary to implement the provisions of this 
    subsection. Such regulations shall include provisions for giving 
    notice of sales to prospective purchasers eligible to submit bids 
    at sales conducted under paragraph (2)(I).''.

SEC. 5. OWNER-MANAGED INTERESTS.

    The Indian Land Consolidation Act (25 U.S.C. 2201 et seq.) is 
amended by adding at the end the following:

``SEC. 221. OWNER-MANAGED INTERESTS.

    ``(a) Purpose.--The purpose of this section is to provide a means 
for the co-owners of trust or restricted interests in a parcel of land 
to enter into surface leases of such parcel for certain purposes 
without approval of the Secretary.
    ``(b) Mineral Interests.--Nothing in this section shall be 
construed to limit or otherwise affect the application of any Federal 
law requiring the Secretary to approve mineral leases or other 
agreements for the development of the mineral interest in trust or 
restricted land.
    ``(c) Owner Management.--
        ``(1) In general.--Notwithstanding any provision of Federal law 
    requiring the Secretary to approve individual Indian leases of 
    individual Indian trust or restricted land, where the owners of all 
    of the undivided trust or restricted interests in a parcel of land 
    have submitted applications to the Secretary pursuant to subsection 
    (a), and the Secretary has approved such applications under 
    subsection (d), such owners may, without further approval by the 
    Secretary, enter into a lease of the parcel for agricultural 
    purposes for a term not to exceed 10 years.
        ``(2) Rule of construction.--No such lease shall be effective 
    until it has been executed by the owners of all undivided trust or 
    restricted interests in the parcel.
    ``(d) Approval of Applications for Owner Management.--
        ``(1) In general.--Subject to the provisions of paragraph (2), 
    the Secretary shall approve an application for owner management 
    submitted by a qualified applicant pursuant to this section unless 
    the Secretary has reason to believe that the applicant is 
    submitting the application as the result of fraud or undue 
    influence. No such application shall be valid or considered if it 
    is received by the Secretary prior to the date that is 1 year after 
    the date on which notice is published pursuant to section 8(a)(4) 
    of the American Indian Probate Reform Act of 2004.
        ``(2) Commencement of owner-managed status.--Notwithstanding 
    the approval of 1 or more applications pursuant to paragraph (1), 
    no trust or restricted interest in a parcel of land shall acquire 
    owner-managed status until applications for all of the trust or 
    restricted interests in such parcel of land have been submitted to 
    and approved by the Secretary pursuant to this section.
    ``(e) Validity of Leases.--No lease of trust or restricted 
interests in a parcel of land that is owner-managed under this section 
shall be valid or enforceable against the owners of such interests, or 
against the land, the interest or the United States, unless such 
lease--
        ``(1) is consistent with, and entered into in accordance with, 
    the requirements of this section; or
        ``(2) has been approved by the Secretary in accordance with 
    other Federal laws applicable to the leasing of trust or restricted 
    land.
    ``(f) Lease Revenues.--The Secretary shall not be responsible for 
the collection of, or accounting for, any lease revenues accruing to 
any interests under a lease authorized by subsection (e), so long as 
such interest is in owner-managed status under the provisions of this 
section.
    ``(g) Jurisdiction.--
        ``(1) Jurisdiction unaffected by status.--The Indian tribe with 
    jurisdiction over an interest in trust or restricted land that 
    becomes owner-managed pursuant to this section shall continue to 
    have jurisdiction over the interest to the same extent and in all 
    respects that such tribe had prior to the interest acquiring owner-
    managed status.
        ``(2) Persons using land.--Any person holding, leasing, or 
    otherwise using such interest in land shall be considered to 
    consent to the jurisdiction of the Indian tribe referred to in 
    paragraph (1), including such tribe's laws and regulations, if any, 
    relating to the use, and any effects associated with the use, of 
    the interest.
    ``(h) Continuation of Owner-Managed Status; Revocation.--
        ``(1) In general.--Subject to the provisions of paragraph (2), 
    after the applications of the owners of all of the trust or 
    restricted interests in a parcel of land have been approved by the 
    Secretary pursuant to subsection (d), each such interest shall 
    continue in owner-managed status under this section notwithstanding 
    any subsequent conveyance of the interest in trust or restricted 
    status to another person or the subsequent descent of the interest 
    in trust or restricted status by testate or intestate succession to 
    1 or more heirs.
        ``(2) Revocation.--Owner-managed status of an interest may be 
    revoked upon written request of the owners (including the parents 
    or legal guardians of minors or incompetent owners) of all trust or 
    restricted interests in the parcel, submitted to the Secretary in 
    accordance with regulations adopted under subsection (l). The 
    revocation shall become effective as of the date on which the last 
    of all such requests has been delivered to the Secretary.
        ``(3) Effect of revocation.--Revocation of owner-managed status 
    under paragraph (2) shall not affect the validity of any lease made 
    in accordance with the provisions of this section prior to the 
    effective date of the revocation, provided that, after such 
    revocation becomes effective, the Secretary shall be responsible 
    for the collection of, and accounting for, all future lease 
    revenues accruing to the trust or restricted interests in the 
    parcel from and after such effective date.
    ``(i) Defined Terms.--
        ``(1) For purposes of subsection (d)(1), the term `qualified 
    applicant' means--
            ``(A) a person over the age of 18 who owns a trust or 
        restricted interest in a parcel of land; and
            ``(B) the parent or legal guardian of a minor or 
        incompetent person who owns a trust or restricted interest in a 
        parcel of land.
        ``(2) For purposes of this section, the term `owner-managed 
    status' means, with respect to a trust or restricted interest, 
    that--
            ``(A) the interest is a trust or restricted interest in a 
        parcel of land for which applications covering all trust or 
        restricted interests in such parcel have been submitted to and 
        approved by the Secretary pursuant to subsection (d);
            ``(B) the interest may be leased without approval of the 
        Secretary pursuant to, and in a manner that is consistent with, 
        the requirements of this section; and
            ``(C) no revocation has occurred under subsection (h)(2).
    ``(j) Secretarial Approval of Other Transactions.--Except with 
respect to the specific lease transaction described in paragraph (1) of 
subsection (c), interests that acquire owner-managed status under the 
provisions of this section shall continue to be subject to all Federal 
laws requiring the Secretary to approve transactions involving trust or 
restricted land (including leases with terms of a duration in excess of 
10 years) that would otherwise apply to such interests if the interests 
had not acquired owner-managed status under this section.
    ``(k) Effect of Section.--Subject to subsections (c), (f), and (h), 
nothing in this section diminishes or otherwise affects any authority 
or responsibility of the Secretary with respect to an interest in trust 
or restricted land.''.

SEC. 6. ADDITIONAL AMENDMENTS.

    (a) In General.--The Indian Land Consolidation Act (25 U.S.C. 2201 
et seq.) is amended--
        (1) in the second sentence of section 205(a) (25 U.S.C. 
    2204(a)), by striking ``over 50 per centum of the undivided 
    interests'' and inserting ``undivided interests equal to at least 
    50 percent of the undivided interest'';
        (2) in section 207 (25 U.S.C. 2206), by adding a subsection at 
    the end as follows:
    ``(p) Purchase Option at Probate.--
        ``(1) In general.--The trust or restricted interests in a 
    parcel of land in the decedent's estate may be purchased at probate 
    in accordance with the provisions of this subsection.
        ``(2) Sale of interest at fair market value.--Subject to 
    paragraph (3), the Secretary is authorized to sell trust or 
    restricted interests in land subject to this subsection, including 
    the interest that a surviving spouse would otherwise receive under 
    section 207(a)(2) (A) or (D), at no less than fair market value, as 
    determined in accordance with the provisions of this Act, to any of 
    the following eligible purchasers:
            ``(A) Any other eligible heir taking an interest in the 
        same parcel of land by intestate succession or the decedent's 
        other devisees of interests in the same parcel who are eligible 
        to receive a devise under section 207(b)(1)(A).
            ``(B) All persons who own undivided trust or restricted 
        interests in the same parcel of land involved in the probate 
        proceeding.
            ``(C) The Indian tribe with jurisdiction over the interest, 
        or the Secretary on behalf of such Indian tribe.
        ``(3) Request to purchase; auction; consent requirements.--No 
    sale of an interest in probate shall occur under this subsection 
    unless--
            ``(A) an eligible purchaser described in paragraph (2) 
        submits a written request to purchase prior to the distribution 
        of the interest to heirs or devisees of the decedent and in 
        accordance with any regulations of the Secretary; and
            ``(B) except as provided in paragraph (5), the heirs or 
        devisees of such interest, and the decedent's surviving spouse, 
        if any, receiving a life estate under section 207(a)(2) (A) or 
        (D) consent to the sale.
    If the Secretary receives more than 1 request to purchase the same 
    interest, the Secretary shall sell the interest by public auction 
    or sealed bid (as determined by the Secretary) at not less than the 
    appraised fair market value to the eligible purchaser submitting 
    the highest bid.
        ``(4) Appraisal and notice.--Prior to the sale of an interest 
    pursuant to this subsection, the Secretary shall--
            ``(A) appraise the interest at its fair market value in 
        accordance with this Act;
            ``(B) provide eligible heirs, other devisees, and the 
        Indian tribe with jurisdiction over the interest with written 
        notice, sent by first class mail, that the interest is 
        available for purchase in accordance with this subsection; and
            ``(C) if the Secretary receives more than 1 request to 
        purchase the interest by a person described in subparagraph 
        (B), provide notice of the manner (auction or sealed bid), time 
        and place of the sale, a description, and the appraised fair 
        market value, of the interest to be sold--
                ``(i) to the heirs or other devisees and the Indian 
            tribe with jurisdiction over the interest, by first class 
            mail; and
                ``(ii) to all other eligible purchasers, by posting 
            written notice in at least 5 conspicuous places in the 
            vicinity of the place of hearing.
        ``(5) Small undivided interests in indian lands.--
            ``(A) In general.--Subject to subparagraph (B), the consent 
        of a person who is an heir otherwise required under paragraph 
        (3)(B) shall not be required for the auction and sale of an 
        interest at probate under this subsection if--
                ``(i) the interest is passing by intestate succession; 
            and
                ``(ii) prior to the auction the Secretary determines in 
            the probate proceeding that the interest passing to such 
            heir represents less than 5 percent of the entire undivided 
            ownership of the parcel of land as evidenced by the 
            Secretary's records as of the time the determination is 
            made.
            ``(B) Exception.--Notwithstanding subparagraph (A), the 
        consent of such heir shall be required for the sale at probate 
        of the heir's interest if, at the time of the decedent's death, 
        the heir was residing on the parcel of land of which the 
        interest to be sold was a part.
        ``(6) Distribution of proceeds.--Proceeds from the sale of 
    interests under this subsection shall be distributed to the heirs, 
    devisees, or spouse whose interest was sold in accordance with the 
    values of their respective interests. The proceeds attributable to 
    an heir or devisee shall be held in an account as trust personalty 
    if the interest sold would have otherwise passed to the heir or 
    devisee in trust or restricted status.'';
        (3) in section 206 (25 U.S.C. 2205)--
            (A) in subsection (a), by striking paragraph (3) and 
        inserting the following:
        ``(3) Tribal probate codes.--Except as provided in any 
    applicable Federal law, the Secretary shall not approve a tribal 
    probate code, or an amendment to such a code, that prohibits the 
    devise of an interest in trust or restricted land to--
            ``(A) an Indian lineal descendant of the original allottee; 
        or
            ``(B) an Indian who is not a member of the Indian tribe 
        with jurisdiction over such an interest;
    unless the code provides for--
                ``(i) the renouncing of interests to eligible devisees 
            in accordance with the code;
                ``(ii) the opportunity for a devisee who is the spouse 
            or lineal descendant of a testator to reserve a life estate 
            without regard to waste; and
                ``(iii) payment of fair market value in the manner 
            prescribed under subsection (c)(2).''; and
            (B) in subsection (c)--
                (i) in paragraph (1)--

                    (I) by striking the paragraph heading and inserting 
                the following:

        ``(1) Authority.--
            ``(A) In general.--'';

                    (II) in the first sentence of subparagraph (A) (as 
                redesignated by clause (i)), by striking ``section 
                207(a)(6)(A) of this title'' and inserting ``section 
                207(b)(2)(A)(ii) of this title''; and
                    (III) by striking the last sentence and inserting 
                the following:

            ``(B) Transfer.--The Secretary shall transfer payments 
        received under subparagraph (A) to any person or persons who 
        would have received an interest in land if the interest had not 
        been acquired by the Indian tribe in accordance with this 
        paragraph.''; and
                (ii) in paragraph (2)--

                    (I) in subparagraph (A)--

                        (aa) by striking the subparagraph heading and 
                    all that follows through ``Paragraph (1) shall not 
                    apply'' and inserting the following:
            ``(A) Inapplicability to certain interests.--
                ``(i) In general.--Paragraph (1) shall not apply'';
                        (bb) in clause (i) (as redesignated by item 
                    (aa)), by striking ``if, while'' and inserting the 
                    following: ``if--

                    ``(I) while'';

                        (cc) by striking the period at the end and 
                    inserting ``; or''; and
                        (dd) by adding at the end the following:

                    ``(II)(aa) the interest is part of a family farm 
                that is devised to a member of the family of the 
                decedent; and
                    ``(bb) the devisee agrees that the Indian tribe 
                with jurisdiction over the land will have the 
                opportunity to acquire the interest for fair market 
                value if the interest is offered for sale to a person 
                or entity that is not a member of the family of the 
                owner of the land.

                ``(ii) Recording of interest.--On request by the Indian 
            tribe described in clause (i)(II)(bb), a restriction 
            relating to the acquisition by the Indian tribe of an 
            interest in a family farm involved shall be recorded as 
            part of the deed relating to the interest involved.
                ``(iii) Mortgage and foreclosure.--Nothing in clause 
            (i)(II) limits--

                    ``(I) the ability of an owner of land to which that 
                clause applies to mortgage the land; or
                    ``(II) the right of the entity holding such a 
                mortgage to foreclose or otherwise enforce such a 
                mortgage agreement in accordance with applicable law.

                ``(iv) Definition of `member of the family'.--In this 
            paragraph, the term `member of the family', with respect to 
            a decedent or landowner, means--

                    ``(I) a lineal descendant of a decedent or 
                landowner;
                    ``(II) a lineal descendant of the grandparent of a 
                decedent or landowner;
                    ``(III) the spouse of a descendant or landowner 
                described in subclause (I) or (II); and
                    ``(IV) the spouse of a decedent or landowner.''; 
                and
                    (II) in subparagraph (B), by striking 
                ``subparagraph (A)'' and all that follows through 
                ``207(a)(6)(B) of this title'' and inserting 
                ``paragraph (1)'';

        (4) in section 207 (25 U.S.C. 2206), by striking subsection 
    (g);
        (5) in section 213 (25 U.S.C. 2212)--
            (A) by striking the section heading and inserting the 
        following:

``SEC. 2212. FRACTIONAL INTEREST ACQUISITION PROGRAM.'';

            (B) in subsection (a), by--
                (i) adding in paragraph (1) ``or from an heir during 
            probate in accordance with section 207(p) (25 U.S.C. 
            2206(p))'' after ``owner,''; and
                (ii) striking ``(2) Authority of secretary.--'' and all 
            that follows through ``the Secretary shall submit'' and 
            inserting the following:
        ``(2) Authority of secretary.--The Secretary shall submit''; 
    and
                (iii) by striking ``whether the program to acquire 
            fractional interests should be extended or altered to make 
            resources'' and inserting ``how the fractional interest 
            acquisition program should be enhanced to increase the 
            resources made'';
            (C) in subsection (b), by striking paragraph (4) and 
        inserting the following:
        ``(4) shall minimize the administrative costs associated with 
    the land acquisition program through the use of policies and 
    procedures designed to accommodate the voluntary sale of interests 
    under this section, notwithstanding the existence of any otherwise 
    applicable policy, procedure, or regulation, through the 
    elimination of duplicate--
            ``(A) conveyance documents;
            ``(B) administrative proceedings; and
            ``(C) transactions.'';
            (D) in subsection (c)--
                (i) in paragraph (1)--

                    (I) in subparagraph (A), by striking ``at least 5 
                percent of the'' and inserting in its place ``an'';
                    (II) in subparagraph (A), by inserting ``in such 
                parcel'' following ``the Secretary shall convey an 
                interest'';
                    (III) in subparagraph (A), by striking ``landowner 
                upon payment'' and all that follows and inserting the 
                following: ``landowner--

                ``(i) on payment by the Indian landowner of the amount 
            paid for the interest by the Secretary; or
                ``(ii) if--

                    ``(I) the Indian referred to in this subparagraph 
                provides assurances that the purchase price will be 
                paid by pledging revenue from any source, including 
                trust resources; and
                    ``(II) the Secretary determines that the purchase 
                price will be paid in a timely and efficient manner.''; 
                and
                    (IV) in subparagraph (B), by inserting before the 
                period at the end the following: ``unless the interest 
                is subject to a foreclosure of a mortgage in accordance 
                with the Act of March 29, 1956 (25 U.S.C. 483a)''; and

                (ii) in paragraph (3), by striking ``10 percent or more 
            of the undivided interests'' and inserting ``an undivided 
            interest''; and
            (E) by adding at the end of the section:
    ``(d) Authorization of Appropriations.--There is authorized to be 
appropriated to carry out this section $75,000,000 for fiscal year 
2005, $95,000,000 for fiscal year 2006, and $145,000,000 for each of 
fiscal years 2007 through 2010.'';
        (6) in section 214 (25 U.S.C. 2213), by striking subsection (b) 
    and inserting the following:
    ``(b) Application of Revenue From Acquired Interests to Land 
Consolidation Program.--
        ``(1) In general.--The Secretary shall have a lien on any 
    revenue accruing to an interest described in subsection (a) until 
    the Secretary provides for the removal of the lien under paragraph 
    (3), (4), or (5).
        ``(2) Requirements.--
            ``(A) In general.--Until the Secretary removes a lien from 
        an interest in land under paragraph (1)--
                ``(i) 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; 
            and
                ``(ii) any revenue derived from any interest acquired 
            by the Secretary in accordance with section 213 shall be 
            deposited in the fund created under section 216.
            ``(B) Approval of transactions.--Notwithstanding section 16 
        of the Act of June 18, 1934 (commonly known as the `Indian 
        Reorganization Act') (25 U.S.C. 476), or any other provision of 
        law, until the Secretary removes a lien from an interest in 
        land under paragraph (1), the Secretary may approve a 
        transaction covered under this section on behalf of an Indian 
        tribe.
        ``(3) Removal of liens after findings.--The Secretary may 
    remove a lien referred to in paragraph (1) if the Secretary makes a 
    finding that--
            ``(A) the costs of administering the interest from which 
        revenue accrues under the lien will equal or exceed the 
        projected revenues for the parcel of land involved;
            ``(B) in the discretion of the Secretary, it will take an 
        unreasonable period of time for the parcel of land to generate 
        revenue that equals the purchase price paid for the interest; 
        or
            ``(C) a subsequent decrease in the value of land or 
        commodities associated with the parcel of 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.
        ``(4) Removal of liens upon payment into the acquisition 
    fund.--The Secretary shall remove a lien referred to in paragraph 
    (1) upon payment of an amount equal to the purchase price of that 
    interest in land into the Acquisition Fund created under section 
    2215 of this title, except where the tribe with jurisdiction over 
    such interest in land authorizes the Secretary to continue the lien 
    in order to generate additional acquisition funds.
        ``(5) Other removal of liens.--The Secretary may, in 
    consultation with tribal governments and other entities described 
    in section 213(b)(3), periodically remove liens referred to in 
    paragraph (1) from interests in land acquired by the Secretary.'';
        (7) in section 215 (25 U.S.C. 2214), in the last sentence, by 
    striking ``section 2212 of this title'' and inserting ``this Act'';
        (8) in section 216 (25 U.S.C. 2215)--
            (A) in subsection (a), by striking paragraph (2) and 
        inserting the following:
        ``(2) collect all revenues received from the lease, permit, or 
    sale of resources from interests acquired under section 213 or paid 
    by Indian landowners under section 213.''; and
            (B) in subsection (b)--
                (i) in paragraph (1)--

                    (I) in the matter preceding subparagraph (A), by 
                striking ``Subject to paragraph (2), all'' and 
                inserting ``All'';
                    (II) in subparagraph (A), by striking ``and'' at 
                the end;
                    (III) in subparagraph (B), by striking the period 
                at the end and inserting ``; and''; and
                    (IV) by adding at the end the following:

            ``(C) be used to acquire undivided interests on the 
        reservation from which the income was derived.''; and
                (ii) by striking paragraph (2) and inserting the 
            following:
        ``(2) Use of funds.--The Secretary may use the revenue 
    deposited in the Acquisition Fund under paragraph (1) to acquire 
    some or all of the undivided interests in any parcels of land in 
    accordance with section 205.'';
        (9) in section 217 (25 U.S.C. 2216)--
            (A) in subsection (b)(1), by striking subparagraph (B) and 
        inserting a new subparagraph (B) as follows:
            ``(B) Waiver of requirement.--The requirement for an 
        estimate of value under subparagraph (A) may be waived in 
        writing by an owner of a trust or restricted interest in land 
        either selling, exchanging, or conveying by gift deed for no or 
        nominal consideration such interest--
                ``(i) to an Indian person who is the owner's spouse, 
            brother, sister, lineal ancestor, lineal descendant, or 
            collateral heir; or
                ``(ii) to an Indian co-owner or to the tribe with 
            jurisdiction over the subject parcel of land, where the 
            grantor owns a fractional interest that represents 5 
            percent or less of the parcel.'';
            (B) in subsection (e), by striking the matter preceding 
        paragraph (1), and inserting ``Notwithstanding any other 
        provision of law, the names and mailing addresses of the owners 
        of any interest in trust or restricted lands, and information 
        on the location of the parcel and the percentage of undivided 
        interest owned by each individual shall, upon written request, 
        be made available to'';
            (C) in subsection (e)(1), by striking ``Indian'';
            (D) in subsection (e)(3), by striking ``prospective 
        applicants for the leasing, use, or consolidation of'' and 
        inserting ``any person that is leasing, using, or 
        consolidating, or is applying to lease, use, or consolidate,''; 
        and
            (E) by striking subsection (f) and inserting the following:
    ``(f) Purchase of Land by Indian Tribe.--
        ``(1) In general.--Except as provided in paragraph (2), before 
    the Secretary approves an application to terminate the trust status 
    or remove the restrictions on alienation from a parcel of, or 
    interest in, trust or restricted land, the Indian tribe with 
    jurisdiction over the parcel shall have the opportunity--
            ``(A) to match any offer contained in the application; or
            ``(B) in a case in which there is no purchase price 
        offered, to acquire the interest in the parcel by paying the 
        fair market value of the interest.
        ``(2) Exception for family farms.--
            ``(A) In general.--Paragraph (1) shall not apply to a 
        parcel of, or interest in, trust or restricted land that is 
        part of a family farm that is conveyed to a member of the 
        family of a landowner (as defined in section 206(c)(2)(A)(iv)) 
        if the conveyance requires that in the event that the parcel or 
        interest is offered for sale to an entity or person that is not 
        a member of the family of the landowner, the Indian tribe with 
        jurisdiction over the land shall be afforded the opportunity to 
        purchase the interest pursuant to paragraph (1).
            ``(B) Applicability of other provision.--Section 
        206(c)(2)(A) shall apply with respect to the recording and 
        mortgaging of any trust or restricted land referred to in 
        subparagraph (A).'';
        (10) in section 219(b)(1)(A) (25 U.S.C. 2218(b)(1)(A)), by 
    striking ``100'' and inserting ``90''; and
        (11) in section 219, by adding at the end of the section:
    ``(g) Other Laws.--Nothing in this Act shall be construed to 
supersede, repeal, or modify any general or specific statute 
authorizing the grant or approval of any type of land use transaction 
involving fractional interests in trust or restricted land.''.
    (b) Definitions.--Section 202 of the Indian Land Consolidation Act 
(25 U.S.C. 2201) is amended--
        (1) by striking paragraph (2) and inserting the following:
        ``(2) `Indian' means--
            ``(A) any person who is a member of any Indian tribe, is 
        eligible to become a member of any Indian tribe, or is an owner 
        (as of the date of enactment of the American Indian Probate 
        Reform Act of 2004) of a trust or restricted interest in land;
            ``(B) any person meeting the definition of Indian under the 
        Indian Reorganization Act (25 U.S.C. 479) and the regulations 
        promulgated thereunder; and
            ``(C) with respect to the inheritance and ownership of 
        trust or restricted land in the State of California pursuant to 
        section 207, any person described in subparagraph (A) or (B) or 
        any person who owns a trust or restricted interest in a parcel 
        of such land in that State.'';
        (2) by striking paragraph (4) and inserting the following:
        ``(4) `trust or restricted lands' means lands, title to which 
    is held by the United States in trust for an Indian tribe or 
    individual, or which is held by an Indian tribe or individual 
    subject to a restriction by the United States against alienation; 
    and `trust or restricted interest in land' or `trust or restricted 
    interest in a parcel of land' means an interest in land, title to 
    which is held in trust by the United States for an Indian tribe or 
    individual, or which is held by an Indian tribe or individual 
    subject to a restriction by the United States against 
    alienation.''; and
        (3) by adding at the end the following:
        ``(6) `parcel of highly fractionated Indian land' means a 
    parcel of land that the Secretary, pursuant to authority under a 
    provision of this Act, determines to have, as evidenced by the 
    Secretary's records at the time of the determination--
            ``(A) 50 or more but less than 100 co-owners of undivided 
        trust or restricted interests, and no 1 of such co-owners holds 
        a total undivided trust or restricted interest in the parcel 
        that is greater than 10 percent of the entire undivided 
        ownership of the parcel; or
            ``(B) 100 or more co-owners of undivided trust or 
        restricted interests;
        ``(7) `land' means any real property, and includes within its 
    meaning for purposes of this Act improvements permanently affixed 
    to real property;
        ``(8) `person' or `individual' means a natural person;
        ``(9) `eligible heirs' means, for purposes of section 207 (25 
    U.S.C. 2206), any of a decedent's children, grandchildren, great 
    grandchildren, full siblings, half siblings by blood, and parents 
    who are--
            ``(A) Indian; or
            ``(B) lineal descendents within 2 degrees of consanguinity 
        of an Indian; or
            ``(C) owners of a trust or restricted interest in a parcel 
        of land for purposes of inheriting by descent, renunciation, or 
        consolidation agreement under section 207 (25 U.S.C. 2206), 
        another trust or restricted interest in such parcel from the 
        decedent; and
        ``(10) `without regard to waste' means, with respect to a life 
    estate interest in land, that the holder of such estate is entitled 
    to the receipt of all income, including bonuses and royalties, from 
    such land to the exclusion of the remaindermen.''.
    (c) Issuance of Patents.--Section 5 of the Act of February 8, 1887 
(25 U.S.C. 348), is amended by striking the second proviso and 
inserting the following: ``Provided, That the rules of intestate 
succession under the Indian Land Consolidation Act (25 U.S.C. 2201 et 
seq.) (including a tribal probate code approved under that Act or 
regulations promulgated under that Act) shall apply to that land for 
which patents have been executed and delivered:''.
    (d) Transfers of Restricted Indian Land.--Section 4 of the Act of 
June 18, 1934 (25 U.S.C. 464), is amended in the first proviso by--
        (1) striking ``, in accordance with'' and all that follows 
    through ``or in which the subject matter of the corporation is 
    located,'';
        (2) striking ``, except as provided by the Indian Land 
    Consolidation Act'' and all that follows through the colon; and
        (3) inserting ``in accordance with the Indian Land 
    Consolidation Act (25 U.S.C. 2201 et seq.) (including a tribal 
    probate code approved under that Act or regulations promulgated 
    under that Act):''.
    (e) Estate Planning.--
        (1) Conduct of activities.--Section 207(f)(1) of the Indian 
    Land Consolidation Act (25 U.S.C. 2206) is amended by striking 
    paragraph (1) and inserting the following:
        ``(1) In general.--
            ``(A) The activities conducted under this subsection shall 
        be conducted in accordance with any applicable--
                ``(i) tribal probate code; or
                ``(ii) tribal land consolidation plan.
            ``(B) The Secretary shall provide estate planning 
        assistance in accordance with this subsection, to the extent 
        amounts are appropriated for such purpose.''.
        (2) Requirements.--Section 207(f)(2) of the Indian Land 
    Consolidation Act (25 U.S.C. 2206(f)(2)) is amended by striking 
    ``and'' at the end of subparagraph (A), redesignating subparagraph 
    (B) as subparagraph (D), and adding the following:
            ``(B) dramatically increase the use of wills and other 
        methods of devise among Indian landowners;
            ``(C) substantially reduce the quantity and complexity of 
        Indian estates that pass intestate through the probate process, 
        while protecting the rights and interests of Indian landowners; 
        and''.
        (3) Probate code development and legal assistance grants.--
    Section 207(f)(3) of the Indian Land Consolidation Act (25 U.S.C. 
    2206(f)(3)) is amended by striking paragraph (3) and inserting the 
    following:
        ``(3) Probate code development and legal assistance grants.--In 
    carrying out this section, the Secretary may award grants to--
            ``(A) Indian tribes, for purposes of tribal probate code 
        development and estate planning services to tribal members;
            ``(B) organizations that provide legal assistance services 
        for Indian tribes, Indian organizations, and individual owners 
        of interests in trust or restricted lands that are qualified as 
        nonprofit organizations under section 501(c)(3) of the Internal 
        Revenue Code of 1986 and provide such services pursuant to 
        Federal poverty guidelines, for purposes of providing civil 
        legal assistance to such Indian tribes, individual owners, and 
        Indian organizations for the development of tribal probate 
        codes, for estate planning services or for other purposes 
        consistent with the services they provide to Indians and Indian 
        tribes; and
            ``(C) in specific areas and reservations where qualified 
        nonprofit organizations referred to in subparagraph (B) do not 
        provide such legal assistance to Indian tribes, Indian 
        organizations, or individual owners of trust or restricted 
        land, to other providers of such legal assistance;
    that submit an application to the Secretary, in such form and 
    manner as the Secretary may prescribe.
        ``(4) Authorization for appropriations.--There is authorized to 
    be appropriated such sums as may be necessary to carry out the 
    provisions of paragraph (3).''.
        (4) Notification to landowners.--Section 207 of the Indian Land 
    Consolidation Act (25 U.S.C. 2206) is amended by adding at the end 
    the following:
    ``(l) Notification to Landowners.--After receiving written request 
by any owner of a trust or restricted interest in land, the Secretary 
shall provide to such landowner the following information with respect 
to each tract of trust or restricted land in which the landowner has an 
interest:
        ``(1) The location of the tract of land involved.
        ``(2) The identity of each other co-owner of interests in the 
    parcel of land.
        ``(3) The percentage of ownership of each owner of an interest 
    in the tract.
    ``(m) Pilot Project for the Management of Trust Assets of Indian 
Families and Relatives.--
        ``(1) Development pilot project.--The Secretary shall consult 
    with tribes, individual landowner organizations, Indian advocacy 
    organizations, and other interested parties to--
            ``(A) develop a pilot project for the creation of legal 
        entities such as private or family trusts, partnerships 
        corporations, or other organizations to improve, facilitate, 
        and assist in the efficient management of interests in trust or 
        restricted lands or funds owned by Indian family members and 
        relatives; and
            ``(B) develop proposed rules, regulations, and guidelines 
        to implement the pilot project, including--
                ``(i) the criteria for establishing such legal 
            entities;
                ``(ii) reporting and other requirements that the 
            Secretary determines to be appropriate for administering 
            such entities; and
                ``(iii) provisions for suspending or revoking the 
            authority of an entity to engage in activities relating to 
            the management of trust or restricted assets under the 
            pilot project in order to protect the interests of the 
            beneficial owners of such assets.
        ``(2) Primary purposes; limitation; approval of transactions; 
    payments by secretary.--
            ``(A) Purposes.--The primary purpose of any entity 
        organized under the pilot project shall be to improve, 
        facilitate, and assist in the management of interests in trust 
        or restricted land, held by 1 or more persons, in furtherance 
        of the purposes of this Act.
            ``(B) Limitation.--The organization or activities of any 
        entity under the pilot project shall not be construed to 
        impair, impede, replace, abrogate, or modify in any respect the 
        trust duties or responsibilities of the Secretary, nor shall 
        anything in this subsection or in any rules, regulations, or 
        guidelines developed under this subsection enable any private 
        or family trustee of trust or restricted interests in land to 
        exercise any powers over such interests greater than that held 
        by the Secretary with respect to such interests.
            ``(C) Secretarial approval of transactions.--Any 
        transaction involving the lease, use, mortgage or other 
        disposition of trust or restricted land or other trust assets 
        administered by or through an entity under the pilot project 
        shall be subject to approval by the Secretary in accordance 
        with applicable Federal law.
            ``(D) Payments.--The Secretary shall have the authority to 
        make payments of income and revenues derived from trust or 
        restricted land or other trust assets administered by or 
        through an entity participating in the pilot project directly 
        to the entity, in accordance with requirements of the 
        regulations adopted pursuant to this subsection.
        ``(3) Limitations on pilot project.--
            ``(A) Number of organizations.--The number of entities 
        established under the pilot project authorized by this 
        subsection shall not exceed 30.
            ``(B) Regulations required.--No entity shall commence 
        activities under the pilot project authorized by this 
        subsection until the Secretary has adopted final rules and 
        regulations under paragraph (1)(B).
        ``(4) Report to congress.--Prior to the expiration of the pilot 
    project provided for under this subsection, the Secretary shall 
    submit a report to Congress stating--
            ``(A) a description of the Secretary's consultation with 
        Indian tribes, individual landowner associations, Indian 
        advocacy organizations, and other parties consulted with 
        regarding the development of rules and regulations for the 
        creation and management of interests in trust and restricted 
        lands under the pilot project;
            ``(B) the feasibility of accurately monitoring the 
        performance of legal entities such as those involved in the 
        pilot project, and the effectiveness of such entities as 
        mechanisms to manage and protect trust assets;
            ``(C) the impact that the use of entities such as those in 
        the pilot project may have with respect to the accomplishment 
        of the goals of the Indian Land Consolidation Act (25 U.S.C. 
        2201 et seq.); and
            ``(D) any recommendations that the Secretary may have 
        regarding whether to adopt a permanent program as a management 
        and consolidation measure for interests in trust or restricted 
        lands.
    ``(n) Notice to Heirs.--Prior to holding a hearing to determine the 
heirs to trust or restricted property, or making a decision determining 
such heirs, the Secretary shall seek to provide actual written notice 
of the proceedings to all heirs. Such efforts shall include--
        ``(1) a search of publicly available records and Federal 
    records, including telephone and address directories and including 
    electronic search services or directories;
        ``(2) an inquiry with family members and co-heirs of the 
    property;
        ``(3) an inquiry with the tribal government of which the owner 
    is a member, and the tribal government with jurisdiction over the 
    property, if any; and
        ``(4) if the property is of a value greater than $2,000, 
    engaging the services of an independent firm to conduct a missing 
    persons search.
    ``(o) Missing Heirs.--
        ``(1) For purposes of this subsection and subsection (m), an 
    heir may be presumed missing if--
            ``(A) such heir's whereabouts remain unknown 60 days after 
        completion of notice efforts under subsection (m); and
            ``(B) in the proceeding to determine a decedent's heirs, 
        the Secretary finds that the heir has had no contact with other 
        heirs of the decedent, if any, or with the Department relating 
        to trust or restricted land or other trust assets at any time 
        during the 6-year period preceding the hearing to determine 
        heirs.
        ``(2) Before the date for declaring an heir missing, any person 
    may request an extension of time to locate such heir. The Secretary 
    shall grant a reasonable extension of time for good cause.
        ``(3) An heir shall be declared missing only after a review of 
    the efforts made in the heirship proceeding and a finding has been 
    made that this subsection has been complied with.
        ``(4) An heir determined to be missing pursuant to this 
    subsection shall be deemed to have predeceased the decedent for 
    purposes of descent and devise of trust or restricted land and 
    trust personalty within that decedent's estate.''.
SEC. 7. ANNUAL NOTICE AND FILING REQUIREMENT FOR OWNERS OF INTERESTS IN 
TRUST OR RESTRICTED LANDS.
    The Indian Land Consolidation Act (25 U.S.C. 2201 et seq.) is 
amended by adding at the end the following:

``SEC. 222. ANNUAL NOTICE AND FILING; CURRENT WHEREABOUTS OF INTEREST 
              OWNERS.

    ``On at least an annual basis, the Secretary shall include along 
with other regular reports to owners of trust or restricted interests 
in land and individual Indian money account owners a change of name and 
address form by means of which the owner may confirm or update the 
owner's name and address. The change of name and address form shall 
include a section in which the owner may confirm and update the owner's 
name and address.''.

SEC. 8. NOTICE; EFFECTIVE DATE.

    (a) Notice.--
        (1) In general.--Not later than 180 days after the date of 
    enactment of this Act, the Secretary shall notify Indian tribes and 
    owners of trust or restricted lands of the amendments made by this 
    Act.
        (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 and the amendments made by this 
        Act, with emphasis on the effect of the provisions of this Act 
        and the amendments made by this Act, on the testate disposition 
        and intestate descent of their interests in trust or restricted 
        land;
            (B) estate planning options available to the owners, 
        including any opportunities for receiving estate planning 
        assistance or advice;
            (C) the use of negotiated sales, gift deeds, land 
        exchanges, and other transactions for consolidating the 
        ownership of land; and
            (D) a toll-free telephone number to be used for obtaining 
        information regarding the provisions of this Act and any trust 
        assets of such owners.
        (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--
            (A) certify that the requirements of this subsection have 
        been met; and
            (B) publish notice of that certification in the Federal 
        Register.
    (b) Effective Date.--Section 207 of the Indian Land Consolidation 
Act (25 U.S.C. 2206), except subsections (e) and (f) of that section, 
shall not apply to the estate of an individual who dies before the date 
that is 1 year after the date on which the Secretary makes the 
certification required under subsection (a)(4).

SEC. 9. SEVERABILITY.

    If any provision of this Act or of any amendment made by this Act, 
or the application of any such provision to any person or circumstance, 
is held to be invalid for any reason, the remainder of this Act and of 
amendments made by this Act, and the application of the provisions and 
of the amendments made by this Act to any other person or circumstance 
shall not be affected by such holding, except that each of subclauses 
(II), (III), and (IV) of section 205(d)(2)(I)(i) is deemed to be 
inseverable from the other 2, such that if any 1 of those 3 subclauses 
is held to be invalid for any reason, neither of the other 2 of such 
subclauses shall be given effect.

SEC. 10. REGULATIONS.

    The Secretary is authorized to adopt such regulations as may be 
necessary to implement the provisions of this Act.

                               Speaker of the House of Representatives.

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