transferred under a compact or funding agreement. If at
any time the Indian tribe has reason to believe that the
total amount provided for a specific activity in the com-
pact or funding agreement is insufficient the Indian tribe
shall provide reasonable notice of such insufficiency to the
Secretary. If the Secretary does not increase the amount
of funds transferred under the funding agreement, the In-
dian tribe may suspend performance of the activity until
such time as additional funds are transferred.
‘‘SEC. 509. CONSTRUCTION PROJECTS.
‘‘(a) IN GENERAL.—Indian tribes participating in
tribal self-governance may carry out construction projects
under this title if they elect to assume all Federal respon-
sibilities under the National Environmental Policy Act of
1969, the Historic Preservation Act , and related provi-
sions of law that would apply if the Secretary were to un-
dertake a construction project, by adopting a resolution
(1) designating a certifying officer to represent the Indian
tribe and to assume the status of a responsible Federal
official under such laws, and (2) accepting the jurisdiction
of the Federal court for the purpose of enforcement of
the responsibilities of the responsible Federal official
under such environmental laws.
‘‘(b) NEGOTIATIONS.—Construction project proposals
shall be negotiated pursuant to the statutory process in
section 105(m) and resulting construction project agree-
ments shall be incorporated into funding agreements as
addenda.
‘‘(c) CODES AND STANDARDS.—The Indian tribe and
the Secretary shall agree upon and specify appropriate
buildings codes and architectural/engineering standards
(including health and safety) which shall be in conformity
with nationally recognized standards for comparable
projects.
‘‘(d) RESPONSIBILITY FOR COMPLETION.—The In-
dian tribe shall assume responsibility for the successful
completion of the construction project in accordance with
the negotiated construction project agreement.
‘‘(e) FUNDING.—Funding for construction projects
carried out under this title shall be included in funding
agreements as annual advance payments, with semiannual
payments at the option of the Indian tribe. Annual ad-
vance and semiannual payment amounts shall be deter-
mined based on mutually agreeable project schedules re-
flecting work to be accomplished within the advance pay-
ment period, work accomplished and funds expended in
previous payment periods, and the total prior payments.
The Secretary shall include associated project contingency
funds with each advance payment installment. The Indian
tribe shall be responsible for the management of the con-
tingency funds included in funding agreements.
‘‘(f) APPROVAL.—The Secretary shall have at least
one opportunity to approve project planning and design
documents prepared by the Indian tribe in advance of con-
struction of the facilities specified in the scope of work
for each negotiated construction project agreement or
amendment thereof which results in a significant change
in the original scope of work. The Indian tribe shall pro-
vide the Secretary with project progress and financial re-
ports not less than semiannually. The Secretary may con-
duct on-site project oversight visits semiannually or on an
alternate schedule agreed to by the Secretary and the In-
dian tribe.
‘‘(g) WAGES.—All laborers and mechanics employed
by contractors and subcontractors in the construction, al-
teration, or repair, including painting or decorating of
building or other facilities in connection with construction
projects undertaken by self-governance Indian tribes
under this Act, shall be paid wages at not less than those
prevailing wages on similar construction in the locality as
determined by the Secretary of Labor in accordance with
the Davis-Bacon Act of March 3, 1931 (46 Stat. 1494).
With respect to construction, alteration, or repair work to
which the Act of March 3, 1921, is applicable under the
terms of this section, the Secretary of Labor shall have
the authority and functions set forth in Reorganization
Plan Numbered 14, of 1950, and section 2 of the Act of
June 13, 1934 (48 Stat. 948).
‘‘(h) APPLICATION OF OTHER LAWS.—Unless other-
wise agreed to by the Indian tribe, no provision of the Of-
fice of Federal Procurement Policy Act, the Federal Ac-
quisition Regulations issued pursuant thereto, or any
other law or regulation pertaining to Federal procurement
(including Executive orders) shall apply to any construc-
tion project conducted under this title.
‘‘SEC. 510. FEDERAL PROCUREMENT LAWS AND REGULA-
TIONS.
‘‘Notwithstanding any other provision of law, unless
expressly agreed to by the participating Indian tribe, the
compacts and funding agreements entered into under this
title shall not be subject to Federal contracting or coopera-
tive agreement laws and regulations (including Executive
orders and the Secretary’s regulations), except to the ex-
tent that such laws expressly apply to Indian tribes.
‘‘SEC. 511. CIVIL ACTIONS.
‘‘(a) CONTRACT DEFINED.—For the purposes of sec-
tion 110, the term ‘contract’ shall include compacts and
funding agreements entered into under this title.
‘‘(b) APPLICABILITY
OF CERTAIN LAWS.—Section
2103 of the Revised Statutes of the United States Code
(25 U.S.C. 81) and section 16 of the Act of June 18, 1934
(25 U.S.C. 476), shall not apply to attorney and other
professional contracts entered into by Indian tribes par-
ticipating in self-governance under this title.
‘‘(c) REFERENCES.—All references in the Indian
Self-Determination and Education Assistance Act (25
U.S.C. 450 et seq.) to section 1 of the Act of June 26,
1936 (25 U.S.C. 81) are hereby deemed to include section
1 of the Act of July 3, 1952 (25 U.S.C. 82a).
‘‘SEC. 512. FACILITATION.
‘‘(a) SECRETARIAL INTERPRETATION.—Except as
otherwise provided by law, the Secretary shall interpret
all Federal laws, Executive orders and regulations in a
manner that will facilitate—
‘‘(1) the inclusion of programs, services, func-
tions, and activities (or portions thereof) and funds
associated therewith, in the agreements entered into
under this section;
‘‘(2) the implementation of compacts and fund-
ing agreements entered into under this title; and
‘‘(3) the achievement of tribal health goals and
objectives.
‘‘(b) REGULATION WAIVER.—
‘‘(1) An Indian tribe may submit a written re-
quest to waive application of a regulation promul-
gated under this Act for a compact or funding
agreement entered into with the Indian Health Serv-
ice under this title, to the Secretary identifying the
applicable Federal regulation sought to be waived
and the basis for the request.
‘‘(2) Not later than 90 days after receipt by the
Secretary of a written request by an Indian tribe to
waive application of a regulation for a compact or
funding agreement entered into under this title, the
Secretary shall either approve or deny the requested
waiver in writing. A denial may be made only upon
a specific finding by the Secretary that identified
language in the regulation may not be waived be-
cause such waiver is prohibited by Federal law. A
failure to approve or deny a waiver request not later
than 90 days after receipt shall be deemed an ap-
proval of such request. The Secretary’s decision shall
be final for the Department.
‘‘(c) ACCESS TO FEDERAL PROPERTY.—In connec-
tion with any compact or funding agreement executed pur-
suant to this title or an agreement negotiated under the
Tribal Self-Governance Demonstration Project established
under title III, as in effect before the enactment of the
Tribal Self-Governance Amendments of 1998, upon the re-
quest of an Indian tribe, the Secretary—
‘‘(1) shall permit an Indian tribe to use existing
school buildings, hospitals, and other facilities and
all equipment therein or appertaining thereto and
other personal property owned by the Government
within the Secretary’s jurisdiction under such terms
and conditions as may be agreed upon by the Sec-
retary and the tribe for their use and maintenance;
‘‘(2) may donate to an Indian tribe title to any
personal or real property found to be excess to the
needs of any agency of the Department, or the Gen-
eral Services Administration, except that—
‘‘(A) subject to the provisions of subpara-
graph (B), title to property and equipment fur-
nished by the Federal Government for use in
the performance of the compact or funding
agreement or purchased with funds under any
compact or funding agreement shall, unless oth-
erwise requested by the Indian tribe, vest in the
appropriate Indian tribe;
‘‘(B) if property described in subparagraph
(A) has a value in excess of $5,000 at the time
of retrocession, withdrawal, or reassumption, at
the option of the Secretary upon the retroces-
sion, withdrawal, or reassumption, title to such
property and equipment shall revert to the De-
partment of Health and Human Services; and
‘‘(C) all property referred to in subpara-
graph (A) shall remain eligible for replacement,
maintenance, and improvement on the same
basis as if title to such property were vested in
the United States; and
‘‘(3) shall acquire excess or surplus Government
personal or real property for donation to an Indian
tribe if the Secretary determines the property is ap-
propriate for use by the Indian tribe for any purpose
for which a compact or funding agreement is author-
ized under this title.
‘‘(d) MATCHING OR COST-PARTICIPATION REQUIRE-
MENT.—All funds provided under compacts, funding
agreements, or grants made pursuant to this Act, shall
be treated as non-Federal funds for purposes of meeting
matching or cost participation requirements under any
other Federal or non-Federal program.
‘‘(e) STATE FACILITATION.—States are hereby au-
thorized and encouraged to enact legislation, and to enter
into agreements with Indian tribes to facilitate and supple-
ment the initiatives, programs, and policies authorized by
this title and other Federal laws benefiting Indians and
Indian tribes.
‘‘(f) RULES OF CONSTRUCTION.—Each provision of
this title and each provision of a compact or funding
agreement shall be liberally construed for the benefit of
the Indian tribe participating in self-governance and any
ambiguity shall be resolved in favor of the Indian tribe.
‘‘SEC. 513. BUDGET REQUEST.
‘‘(a) IN GENERAL.—The President shall identify in
the annual budget request submitted to the Congress
under section 1105 of title 31, United States Code, all
funds necessary to fully fund all funding agreements au-
thorized under this title, including funds specifically iden-
tified to fund tribal base budgets. All funds so appro-
priated shall be apportioned to the Indian Health Service.
Such funds shall be provided to the Office of Tribal Self-
Governance which shall be responsible for distribution of
all funds provided under section 505. Nothing in this pro-
vision shall be construed to authorize the Indian Health
Service to reduce the amount of funds that a self-govern-
ance tribe is otherwise entitled to receive under its funding
agreement or other applicable law, whether or not such
funds are made available to the Office of Tribal Self-Gov-
ernance under this section.
‘‘(b) PRESENT FUNDING; SHORTFALLS.—In such
budget request, the President shall identify the level of
need presently funded and any shortfall in funding (in-
cluding direct program and contract support costs) for
each Indian tribe, either directly by the Secretary, under
self-determination contracts, or under compacts and fund-
ing agreements authorized under this title.
‘‘SEC. 514. REPORTS.
‘‘(a) ANNUAL REPORT.—Not later than January 1
of each year after the date of the enactment of this title,
the Secretary shall submit to the Committee on Resources
of the House of Representatives and the Committee on
Indian Affairs of the Senate a written report regarding
the administration of this title. Such report shall include
a detailed analysis of the level of need being presently
funded or unfunded for each Indian tribe, either directly
by the Secretary, under self-determination contracts under
title I, or under compacts and funding agreements author-
ized under this Act. In compiling reports pursuant to this
section, the Secretary may not impose any reporting re-
quirements on participating Indian tribes or tribal organi-
zations, not otherwise provided in this Act.
‘‘(b) CONTENTS.—The report shall be compiled from
information contained in funding agreements, annual
audit reports, and Secretarial data regarding the disposi-
tion of Federal funds and shall—
‘‘(1) identify the relative costs and benefits of
self-governance;
‘‘(2) identify, with particularity, all funds that
are specifically or functionally related to the provi-
sion by the Secretary of services and benefits to self-
governance Indian tribes and their members;
‘‘(3) identify the funds transferred to each self-
governance Indian tribe and the corresponding re-
duction in the Federal bureaucracy;
‘‘(4) identify the funding formula for individual
tribal shares of all headquarters funds, together with
the comments of affected Indian tribes or tribal or-
ganizations, developed under subsection (c);
‘‘(5) identify amounts expended in the preced-
ing fiscal year to carry out inherent Federal func-
tions, including an identification of those functions
by type and location;
‘‘(6) contain a description of the method or
methods (or any revisions thereof) used to determine
the individual tribal share of funds controlled by all
components of the Indian Health Service (including
funds assessed by any other Federal agency) for in-
clusion in self-governance compacts or funding
agreements;
‘‘(7) prior to being submitted to Congress, be
distributed to the Indian tribes for comment, such
comment period to be for no less than 30 days; and
‘‘(8) include the separate views and comments
of the Indian tribes or tribal organizations.
‘‘(c) REPORT ON FUND DISTRIBUTION METHOD.—
Not later than 180 days after the date of enactment of
this title, the Secretary shall, after consultation with In-
dian tribes, submit a written report to the Committee on
Resources of the House of Representatives and the Com-
mittee on Indian Affairs of the Senate which describes the
method or methods used to determine the individual tribal
share of funds controlled by all components of the Indian
Health Service (including funds assessed by any other
Federal agency) for inclusion in self-governance compacts
or funding agreements.
‘‘SEC. 515. DISCLAIMERS.
‘‘(a) NO FUNDING REDUCTION.—Nothing in this
title shall be construed to limit or reduce in any way the
funding for any program, project, or activity serving an
Indian tribe under this or other applicable Federal law.
Any Indian tribe that alleges that a compact or funding
agreement is in violation of this section may apply the pro-
visions of section 110.
‘‘(b) FEDERAL TRUST AND TREATY RESPONSIBIL-
ITIES.—Nothing in this Act shall be construed to diminish
in any way the trust responsibility of the United States
to Indian tribes and individual Indians that exists under
treaties, Executive orders, or other laws and court deci-
sions.
‘‘(c) TRIBAL EMPLOYMENT.—For purposes of section
2(2) of the Act of July 5, 1935 (49 Stat. 450, chapter
372) (commonly known as the National Labor Relations
Act), an Indian tribe carrying out a self-determination
contract, compact, annual funding agreement, grant, or
cooperative agreement under this Act shall not be consid-
ered an employer.
‘‘(d) OBLIGATIONS OF THE UNITED STATES.—The
Indian Health Service under this Act shall neither bill nor
charge those Indians who may have the economic means
to pay for services, nor require any Indian tribe to do so.
‘‘SEC. 516. APPLICATION OF OTHER SECTIONS OF THE ACT.
‘‘(a) MANDATORY APPLICATION.—All provisions of
sections 5(b), 6, 7, 102(c) and (d), 104, 105(k) and (l),
106(a) through (k), and 111 of this Act and section 314
of Public Law 101–512 (coverage under the Federal Tort
Claims Act), to the extent not in conflict with this title,
shall apply to compacts and funding agreements author-
ized by this title.
‘‘(b) DISCRETIONARY APPLICATION.—At the request
of a participating Indian tribe, any other provision of title
I, to the extent such provision is not in conflict with this
title, shall be made a part of a funding agreement or com-
pact entered into under this title. The Secretary is obli-
gated to include such provision at the option of the partici-
pating Indian tribe or tribes. If such provision is incor-
porated it shall have the same force and effect as if it
were set out in full in this title. In the event an Indian
tribe requests such incorporation at the negotiation stage
of a compact or funding agreement, such incorporation
shall be deemed effective immediately and shall control the
negotiation and resulting compact and funding agreement.
‘‘SEC. 517. REGULATIONS.
‘‘(a) IN GENERAL.—
‘‘(1) Not later than 90 days after the date of
enactment of this title, the Secretary shall initiate
procedures under subchapter III of chapter 5 of title
5, United States Code, to negotiate and promulgate
such regulations as are necessary to carry out this
title.
‘‘(2) Proposed regulations to implement this
title shall be published in the Federal Register by
the Secretary no later than 1 year after the date of
enactment of this title.
‘‘(3) The authority to promulgate regulations
under this title shall expire 21 months after the date
of enactment of this title.
‘‘(b) COMMITTEE.—A negotiated rulemaking commit-
tee established pursuant to section 565 of title 5, United
States Code, to carry out this section shall have as its
members only Federal and tribal government representa-
tives, a majority of whom shall be nominated by and be
representatives of Indian tribes with funding agreements
under this Act, and the Committee shall confer with, and
accommodate participation by, representatives of Indian
tribes, inter-tribal consortia, tribal organizations, and in-
dividual tribal members.
‘‘(c) ADAPTATION OF PROCEDURES.—The Secretary
shall adapt the negotiated rulemaking procedures to the
unique context of self-governance and the government-to-
government relationship between the United States and
Indian tribes.
‘‘(d) EFFECT.—The lack of promulgated regulations
shall not limit the effect of this title.
‘‘(e) EFFECT OF CIRCULARS, POLICIES, MANUALS,
GUIDANCES, AND RULES.—Unless expressly agreed to by
the participating Indian tribe in the compact or funding
agreement, the participating Indian tribe shall not be sub-
ject to any agency circular, policy, manual, guidance, or
rule adopted by the Indian Health Service and the eligi-
bility provisions of section 105(g).
‘‘SEC. 518. APPEALS.
‘‘In any appeal (including civil actions) involving deci-
sions made by the Secretary under this title, the Secretary
shall have the burden of proof of demonstrating by clear
and convincing evidence—
‘‘(1) the validity of the grounds for the decision
made; and
‘‘(2) the decision is fully consistent with provi-
sions and policies of this title.
‘‘SEC. 519. AUTHORIZATION OF APPROPRIATIONS.
‘‘There are authorized to be appropriated such sums
as may be necessary to carry out this title.
‘‘TITLE 
VI—TRIBAL 
SELF-GOV-
ERNANCE—DEPARTMENT OF
HEALTH AND HUMAN SERV-
ICES
‘‘SEC. 601. DEMONSTRATION PROJECT FEASIBILITY.
‘‘(a) STUDY.—The Secretary shall conduct a study
to determine the feasibility a Tribal Self-Governance Dem-
onstration Project for appropriate programs, services,
functions, and activities (or portions thereof) of the agen-
cy.
‘‘(b) CONSIDERATIONS.—When conducting the study,
the Secretary shall consider—
‘‘(1) the probable effects on specific programs
and program beneficiaries of such a demonstration
project;
‘‘(2) statutory, regulatory, or other impedi-
ments to implementation of such a demonstration
project;
‘‘(3) strategies for implementing such a dem-
onstration project;
‘‘(4) probable costs or savings associated with
such a demonstration project;
‘‘(5) methods to assure quality and accountabil-
ity in such a demonstration project; and
‘‘(6) such other issues that may be determined
by the Secretary or developed through consultation
pursuant to section 602.
‘‘(c) REPORT.—Not later than 18 months after the
enactment of this title, the Secretary shall submit a report
to the Committee on Resources of the House of Represent-
atives and the Committee on Indian Affairs of the Senate.
The report shall contain—
‘‘(1) the results of the study;
‘‘(2) a list of programs, services, functions, and
activities (or portions thereof) within the agency
which it would be feasible to include in a Tribal Self-
Governance Demonstration Project;
‘‘(3) a list of programs, services, functions, and
activities (or portions thereof) included in the list
provided pursuant to paragraph (2) which could be
included in a Tribal Self-Governance Demonstration
Project without amending statutes, or waiving regu-
lations that the Secretary may not waive;
‘‘(4) a list of legislative actions required in
order to include those programs, services, functions,
and activities (or portions thereof) included in the
list provided pursuant to paragraph (2) but not in-
cluded in the list provided pursuant to paragraph
(3) in a Tribal Self-Governance Demonstration
Project; and
‘‘(5) any separate views of tribes and other en-
tities consulted pursuant to section 602 related to
the information provided pursuant to paragraph (1)
through (4).
‘‘SEC. 602. CONSULTATION.
‘‘(a) STUDY PROTOCOL.—
‘‘(1) CONSULTATION WITH INDIAN TRIBES.—
The Secretary shall consult with Indian tribes to de-
termine a protocol for consultation under subsection
(b) prior to consultation under such subsection with
the other entities described in such subsection. The
protocol shall require, at a minimum, that—
‘‘(A) the government-to-government rela-
tionship with Indian tribes forms the basis for
the consultation process;
‘‘(B) the Indian tribes and the Secretary
jointly conduct the consultations required by
this section; and
‘‘(C) the consultation process allow for sep-
arate and direct recommendations from the In-
dian tribes and other entities described in sub-
section (b).
‘‘(2) OPPORTUNITY FOR PUBLIC COMMENT.—In
determining the protocol described in paragraph
(1),the Secretary shall publish the proposed protocol
and allow a period of not less than 30 days for com-
ment by entities described in subsection (b) and
other interested individuals, and shall take com-
ments received into account in determining the final
protocol.
‘‘(b) CONDUCTING STUDY.—In conducting the study
under this title, the Secretary shall consult with Indian
tribes,States, counties, municipalities, program bene-