the medicare program, the medicaid program, the 
State children’s health insurance program, the food 
stamp program, or the Temporary Assistance for 
Needy Families program.’’. 
TITLE V—RESTRUCTURING BU-
REAU 
OF 
INDIAN 
AFFAIRS 
AND 
OFFICE 
OF 
SPECIAL 
TRUSTEE 
SEC. 501. PURPOSE. 
The purpose of this title is to ensure a more effective 
and accountable administration of duties of the Secretary 
of the Interior with respect to providing services and pro-
grams to Indians and Indian tribes, including the manage-
ment of Indian trust resources. 
SEC. 502. DEFINITIONS. 
In this title: 
(1) BUREAU.—The term ‘‘Bureau’’ means the 
Bureau of Indian Affairs. 
(2) OFFICE.—The term ‘‘Office’’ means the Of-
fice of Trust Reform Implementation and Oversight 
referred to in section 503(c). 
(3) SECRETARY.—The term ‘‘Secretary’’ means 
the Secretary of the Interior. 
(4) UNDER
SECRETARY.—The term ‘‘Under 
Secretary’’ means the individual appointed to the po-
sition of Under Secretary for Indian Affairs, estab-
lished by section 503(a). 
SEC. 503. UNDER SECRETARY FOR INDIAN AFFAIRS. 
(a) ESTABLISHMENT OF POSITION.—There is estab-
lished in the Department of the Interior the position of 
Under Secretary for Indian Affairs, who shall report di-
rectly to the Secretary. 
(b) APPOINTMENT.— 
(1) IN GENERAL.—Except as provided in para-
graph (2), the Under Secretary shall be appointed 
by the President, by and with the advice and consent 
of the Senate. 
(2) EXCEPTION.—The officer serving as the As-
sistant Secretary for Indian Affairs on the date of 
enactment of this Act may assume the position of 
Under Secretary without appointment under para-
graph (1) if— 
(A) the officer was appointed as Assistant 
Secretary for Indian Affairs by the President by 
and with the advice and consent of the Senate; 
and 
(B) not later than 180 days after the date 
of enactment of this Act, the Secretary ap-
proves the assumption.
(c) DUTIES.—In addition to the duties transferred to 
the Under Secretary under sections 504 and 505, the 
Under Secretary, acting through an Office of Trust Re-
form Implementation and Oversight, shall— 
(1) carry out any activity relating to trust fund 
accounts and trust resource management of the Bu-
reau (except any activity carried out under the Of-
fice of the Special Trustee for American Indians be-
fore the date on which the Office of the Special 
Trustee is abolished), in accordance with the Amer-
ican Indian Trust Fund Management Reform Act of 
1994 (25 U.S.C. 4001 et seq.); 
(2) develop and maintain an inventory of Indian 
trust assets and resources; 
(3) coordinate with the Special Trustee for 
American Indians to ensure an orderly transition of 
the functions of the Special Trustee under section 
505; 
(4) supervise any activity carried out by the De-
partment of the Interior, including— 
(A) to the extent that the activities relate 
to Indian affairs, activities carried out by— 
(i) the Commissioner of Reclamation; 
(ii) the Director of the Bureau of 
Land Management; and
(iii) the Director of the Minerals Man-
agement Service; and 
(B) intergovernmental relations between 
the Bureau and Indian tribal governments; 
(5) to the maximum extent practicable, coordi-
nate activities and policies of the Bureau with activi-
ties and policies of— 
(A) the Bureau of Reclamation; 
(B) the Bureau of Land Management; and 
(C) the Minerals Management Service; 
(6) provide for regular consultation with Indi-
ans and Indian tribes that own interests in trust re-
sources and trust fund accounts; 
(7) manage and administer Indian trust re-
sources in accordance with any applicable Federal 
law; 
(8) take steps to protect the security of data re-
lating to individual Indian and Indian tribal trust 
accounts; and 
(9) take any other measure the Under Sec-
retary determines to be necessary with respect to In-
dian affairs.
SEC. 504. TRANSFER OF FUNCTIONS OF ASSISTANT SEC-
RETARY FOR INDIAN AFFAIRS. 
(a) TRANSFER OF FUNCTIONS.—There is transferred 
to the Under Secretary any function of the Assistant Sec-
retary for Indian Affairs that has not been carried out 
by the Assistant Secretary as of the date of enactment 
of this Act. 
(b) DETERMINATIONS OF CERTAIN FUNCTIONS BY 
THE OFFICE OF MANAGEMENT AND BUDGET.—If nec-
essary, the Office of Management and Budget shall make 
any determination relating to the functions transferred 
under subsection (a). 
(c) PERSONNEL PROVISIONS.— 
(1) APPOINTMENTS.—The Under Secretary 
may appoint and fix the compensation of such offi-
cers and employees as the Under Secretary deter-
mines to be necessary to carry out any function 
transferred under this section. 
(2) REQUIREMENTS.—Except as otherwise pro-
vided by law— 
(A) an officer or employee described in 
paragraph (1) shall be appointed in accordance 
with the civil service laws; and 
(B) the compensation of the officer or em-
ployee shall be fixed in accordance with title 5, 
United States Code.
(d) DELEGATION AND ASSIGNMENT.— 
(1) IN
GENERAL.—Except as otherwise ex-
pressly prohibited by law or otherwise provided by 
this section, the Under Secretary may— 
(A) delegate any of the functions trans-
ferred to the Under Secretary by this section 
and any function transferred or granted to the 
Under Secretary after the date of enactment of 
this Act to such officers and employees of the 
Office as the Under Secretary may designate; 
and 
(B) authorize successive redelegations of 
such functions as the Under Secretary deter-
mines to be necessary or appropriate. 
(2) DELEGATION.—No delegation of functions 
by the Under Secretary under this section shall re-
lieve the Under Secretary of responsibility for the 
administration of the functions. 
(e) REORGANIZATION.—The Under Secretary may al-
locate or reallocate any function transferred under this 
section among the officers of the Office, and establish, 
consolidate, alter, or discontinue such organizational enti-
ties in the Office, as the Under Secretary determines to 
be necessary or appropriate.
(f) RULES.—The Under Secretary may prescribe, in 
accordance with the provisions of chapters 5 and 6 of title 
5, United States Code, such rules and regulations as the 
Under Secretary determines to be necessary or appro-
priate to administer and manage the functions of the Of-
fice. 
(g) TRANSFER AND ALLOCATIONS OF APPROPRIA-
TIONS AND PERSONNEL.— 
(1) IN
GENERAL.—Except as otherwise pro-
vided in this section, the personnel employed in con-
nection with, and the assets, liabilities, contracts, 
property, records, and unexpended balances of ap-
propriations, authorizations, allocations, and other 
funds employed, used, held, arising from, available 
to, or to be made available in connection with, the 
functions transferred by this section, subject to sec-
tion 1531 of title 31, United States Code, shall be 
transferred to the Office. 
(2) UNEXPENDED FUNDS.—Unexpended funds 
transferred pursuant to this subsection shall be used 
only for the purposes for which the funds were origi-
nally authorized and appropriated. 
(h) INCIDENTAL TRANSFERS.— 
(1) IN GENERAL.—The Director of the Office of 
Management and Budget, at any time the Director
may provide, may make such determinations as are 
necessary with regard to the functions transferred 
by this section, and make such additional incidental 
dispositions of personnel, assets, liabilities, grants, 
contracts, property, records, and unexpended bal-
ances of appropriations, authorizations, allocations, 
and other funds held, used, arising from, available 
to, or to be made available in connection with such 
functions, as are necessary, to carry out this section. 
(2) TERMINATION OF AFFAIRS.—The Director 
of the Office of Management and Budget shall pro-
vide for the termination of the affairs of all entities 
terminated by this section and for any further meas-
ures and dispositions as are necessary to effectuate 
the purposes of this section. 
(i) EFFECT ON PERSONNEL.— 
(1) IN
GENERAL.—Except as otherwise pro-
vided by this section, the transfer pursuant to this 
section of full-time personnel (except special Govern-
ment employees) and part-time personnel holding 
permanent positions shall not cause any such em-
ployee to be separated or reduced in grade or com-
pensation for a period of at least 1 year after the 
date of transfer of the employee under this section.
(2) EXECUTIVE SCHEDULE POSITIONS.—Except 
as otherwise provided in this section, any person 
who, on the day preceding the date of enactment of 
this Act, held a position compensated in accordance 
with the Executive Schedule prescribed in chapter 
53 of title 5, United States Code, and who, without 
a break in service, is appointed to a position in the 
Office having duties comparable to the duties per-
formed immediately preceding such appointment 
shall continue to be compensated in the new position 
at not less than the rate provided for the previous 
position, for the duration of the service of the person 
in the new position. 
(3) TERMINATION
OF
CERTAIN
POSITIONS.— 
Positions whose incumbents are appointed by the 
President, by and with the advice and consent of the 
Senate, the functions of which are transferred by 
this title, shall terminate on the date of enactment 
of this Act. 
(j) SEPARABILITY.—If a provision of this section or 
the application of this section to any person or cir-
cumstance is held invalid, neither the remainder of this 
section nor the application of the provision to other per-
sons or circumstances shall be affected. 
(k) TRANSITION.—The Under Secretary may use—
(1) the services of the officers, employees, and 
other personnel of the Assistant Secretary for Indian 
Affairs relating to functions transferred to the Office 
by this section; and 
(2) funds appropriated to the functions for such 
period of time as may reasonably be needed to facili-
tate the orderly implementation of this section. 
(l) REFERENCES.—Any reference in a Federal law, 
Executive order, rule, regulation, delegation of authority, 
or document relating to the Assistant Secretary for Indian 
Affairs, with respect to functions transferred under this 
section, shall be deemed to be a reference to the Under 
Secretary. 
(m) RECOMMENDED LEGISLATION.—Not later than 
180 days after the effective date of this title, the Under 
Secretary, in consultation with the appropriate committees 
of Congress and the Director of the Office of Management 
and Budget, shall submit to Congress any recommenda-
tions relating to additional technical and conforming 
amendments to Federal law to reflect the changes made 
by this section. 
(n) EFFECT OF SECTION.— 
(1) CONTINUING
EFFECT
OF
LEGAL
DOCU-
MENTS.—Any legal document relating to a function 
transferred by this section that is in effect on the
date of enactment of this Act shall continue in effect 
in accordance with the terms of the document until 
the document is modified or terminated by— 
(A) the President; 
(B) the Under Secretary; 
(C) a court of competent jurisdiction; or 
(D) operation of Federal or State law. 
(2) PROCEEDINGS NOT AFFECTED.—This sec-
tion shall not affect any proceeding (including a no-
tice of proposed rulemaking, an administrative pro-
ceeding, and an application for a license, permit, 
certificate, or financial assistance) relating to a 
function transferred under this section that is pend-
ing before the Assistant Secretary on the date of en-
actment of this Act. 
SEC. 505. OFFICE OF SPECIAL TRUSTEE FOR AMERICAN IN-
DIANS. 
(a) TERMINATION.—Notwithstanding sections 302 
and 303 of the American Indian Trust Fund Management 
Reform Act of 1994 (25 U.S.C. 4042; 4043), the Office 
of Special Trustee for American Indians shall terminate 
on the effective date of this section. 
(b) TRANSFER OF FUNCTIONS.—There is transferred 
to the Under Secretary any function of the Special Trustee
for American Indians that has not been carried out by 
the Special Trustee as of the effective date of this section. 
(c) DETERMINATIONS OF CERTAIN FUNCTIONS BY 
THE OFFICE OF MANAGEMENT AND BUDGET.—If nec-
essary, the Office of Management and Budget shall make 
any determination relating to the functions transferred 
under subsection (b). 
(d) PERSONNEL PROVISIONS.— 
(1) APPOINTMENTS.—The Under Secretary 
may appoint and fix the compensation of such offi-
cers and employees as the Under Secretary deter-
mines to be necessary to carry out any function 
transferred under this section. 
(2) REQUIREMENTS.—Except as otherwise pro-
vided by law— 
(A) any officer or employee described in 
paragraph (1) shall be appointed in accordance 
with the civil service laws; and 
(B) the compensation of such an officer or 
employee shall be fixed in accordance with title 
5, United States Code. 
(e) DELEGATION AND ASSIGNMENT.— 
(1) IN
GENERAL.—Except as otherwise ex-
pressly prohibited by law or otherwise provided by 
this section, the Under Secretary may—
(A) delegate any of the functions trans-
ferred to the Under Secretary under this sec-
tion and any function transferred or granted to 
the Under Secretary after the effective date of 
this section to such officers and employees of 
the Office as the Under Secretary may des-
ignate; and 
(B) authorize successive redelegations of 
the functions as are necessary or appropriate. 
(2) DELEGATION.—No delegation of functions 
by the Under Secretary under this section shall re-
lieve the Under Secretary of responsibility for the 
administration of the functions. 
(f) REORGANIZATION.—The Under Secretary may al-
locate or reallocate any function transferred under sub-
section (b) among the officers of the Office, and establish, 
consolidate, alter, or discontinue such organizational enti-
ties in the Office as the Under Secretary determines to 
be necessary or appropriate. 
(g) RULES.—The Under Secretary may prescribe, in 
accordance with the provisions of chapters 5 and 6 of title 
5, United States Code, such rules and regulations as the 
Under Secretary determines to be necessary or appro-
priate to administer and manage the functions of the Of-
fice.
(h) TRANSFER AND ALLOCATIONS OF APPROPRIA-
TIONS AND PERSONNEL.— 
(1) IN
GENERAL.—Except as otherwise pro-
vided in this section, the personnel employed in con-
nection with, and the assets, liabilities, contracts, 
property, records, and unexpended balances of ap-
propriations, authorizations, allocations, and other 
funds employed, used, held, arising from, available 
to, or to be made available in connection with the 
functions transferred by this section, subject to sec-
tion 1531 of title 31, United States Code, shall be 
transferred to the Office. 
(2) UNEXPENDED FUNDS.—Unexpended funds 
transferred pursuant to this subsection shall be used 
only for the purposes for which the funds were origi-
nally authorized and appropriated. 
(i) INCIDENTAL TRANSFERS.— 
(1) IN GENERAL.—The Director of the Office of 
Management and Budget, at any time the Director 
may provide, may make such determinations as are 
necessary with regard to the functions transferred 
by this section, and make such additional incidental 
dispositions of personnel, assets, liabilities, grants, 
contracts, property, records, and unexpended bal-
ances of appropriations, authorizations, allocations,
and other funds held, used, arising from, available 
to, or to be made available in connection with such 
functions, as are necessary, to carry out this section. 
(2) TERMINATION OF AFFAIRS.—The Director 
of the Office of Management and Budget shall pro-
vide for the termination of the affairs of all entities 
terminated by this section and for any further meas-
ures and dispositions as are necessary to effectuate 
the purposes of this section. 
(j) EFFECT ON PERSONNEL.— 
(1) IN
GENERAL.—Except as otherwise pro-
vided by this section, the transfer pursuant to this 
section of full-time personnel (except special Govern-
ment employees) and part-time personnel holding 
permanent positions shall not cause any such em-
ployee to be separated or reduced in grade or com-
pensation for a period of at least 1 year after the 
date of transfer of the employee under this section. 
(2) EXECUTIVE SCHEDULE POSITIONS.—Except 
as otherwise provided in this section, any person 
who, on the day preceding the effective date of this 
section, held a position compensated in accordance 
with the Executive Schedule prescribed in chapter 
53 of title 5, United States Code, and who, without 
a break in service, is appointed to a position in the
Office having duties comparable to the duties per-
formed immediately preceding such appointment, 
shall continue to be compensated in the new position 
at not less than the rate provided for the previous 
position, for the duration of the service of the person 
in the new position. 
(3) TERMINATION
OF
CERTAIN
POSITIONS.— 
Positions the incumbents of which are appointed by 
the President, by and with the advice and consent 
of the Senate, and the functions of which are trans-
ferred by this title, shall terminate on the effective 
date of this section. 
(k) SEPARABILITY.—If a provision of this section or 
the application of this section to any person or cir-
cumstance is held invalid, neither the remainder of this 
section nor the application of the provision to other per-
sons or circumstances shall be affected. 
(l) TRANSITION.—The Under Secretary may use— 
(1) the services of the officers, employees, and 
other personnel of the Special Trustee relating to 
functions transferred to the Office by this section; 
and 
(2) funds appropriated to those functions for 
such period of time as may reasonably be needed to 
facilitate the orderly implementation of this section.
(m) REFERENCES.—Any reference in a Federal law, 
Executive order, rule, regulation, delegation of authority, 
or document relating to the Special Trustee, with respect 
to functions transferred under this section, shall be 
deemed to be a reference to the Under Secretary. 
(n) RECOMMENDED LEGISLATION.—Not later than 
180 days after the effective date of this title, the Under 
Secretary, in consultation with the appropriate committees 
of Congress and the Director of the Office of Management 
and Budget, shall submit to Congress any recommenda-
tions relating to additional technical and conforming 
amendments to Federal law to reflect the changes made 
by this section. 
(o) EFFECT OF SECTION.— 
(1) CONTINUING
EFFECT
OF
LEGAL
DOCU-
MENTS.—Any legal document relating to a function 
transferred by this section that is in effect on the ef-
fective date of this section shall continue in effect in 
accordance with the terms of the document until the 
document is modified or terminated by— 
(A) the President; 
(B) the Under Secretary; 
(C) a court of competent jurisdiction; or 
(D) operation of Federal or State law.
(2) PROCEEDINGS NOT AFFECTED.—This sec-
tion shall not affect any proceeding (including a no-
tice of proposed rulemaking, an administrative pro-
ceeding, and an application for a license, permit, 
certificate, or financial assistance) relating to a 
function transferred under this section that is pend-
ing before the Special Trustee on the effective date 
of this section. 
(p) EFFECTIVE DATE.—This section shall take effect 
on December 31, 2008. 
SEC. 506. HIRING PREFERENCE. 
In appointing or otherwise hiring any employee to the 
Office, the Under Secretary shall give preference to Indi-
ans in accordance with section 12 of the Act of June 8, 
1934 (25 U.S.C. 472). 
SEC. 507. AUTHORIZATION OF APPROPRIATIONS. 
There are authorized to be appropriated such sums 
as are necessary to carry out this title. 
TITLE VI—AUDIT OF INDIAN 
TRUST FUNDS 
SEC. 601. AUDITS AND REPORTS. 
(a) FINANCIAL STATEMENTS AND INTERNAL CON-
TROL REPORT.— 
(1) FINANCIAL STATEMENTS.—For each fiscal 
year beginning after the enactment of this Act, the
Secretary of Interior shall prepare financial state-
ments for individual Indian, Indian tribal, and other 
Indian trust accounts in accordance with generally 
accepted accounting principles of the Federal Gov-
ernment. 
(2) INTERNAL
CONTROL
REPORT.—Concur-
rently with the financial statements under by para-
graph (1), the Secretary shall prepare an internal 
control report that— 
(A) establishes the responsibility of the 
Secretary for establishing and maintaining an 
adequate internal control structure and proce-
dures for financial reporting under this Act; 
and 
(B) assesses the effectiveness of the inter-
nal control structure and procedures for finan-
cial reporting under subparagraph (A) during 
the preceding fiscal year. 
(b) INDEPENDENT EXTERNAL AUDITOR.— 
(1) IN GENERAL.—The Comptroller General of 
the United States shall enter into a contract with an 
independent external auditor to conduct an audit 
and prepare a report in accordance with this sub-
paragraph.
(2) AUDIT REPORT.—An independent external 
auditor shall submit to the Committee on Indian Af-
fairs of the Senate, and make available to the public, 
an audit of the financial statements under sub-
section (a)(1) in accordance with— 
(A) generally accepted auditing standards 
of the Federal Government; and 
(B) the financial audit manual jointly 
issued by the Government Accountability Office 
and the Council on Integrity and Efficiency of 
the President. 
(3) ATTESTATION AND REPORT.—In conducting 
the audit under paragraph (2), the independent ex-
ternal auditor shall attest to, and report on, the as-
sessment of internal controls made by the Secretary 
under subsection (a)(2)(B). 
(4) PAYMENT FOR AUDIT AND REPORT.— 
(A) TRANSFER OF FUNDS.—On request of 
the Comptroller General, the Secretary shall 
transfer to the Government Accountability Of-
fice from funds made available for administra-
tive expenses of the Department of Interior the 
amount requested by the Comptroller General 
to pay for an annual audit and report. 
(B) CREDIT TO ACCOUNT.—
(i) 
IN
GENERAL.—The 
Controller 
General shall credit the amount of any 
funds transferred under subparagraph (A) 
to the account established for salaries and 
expenses of the Government Accountability 
Office. 
(ii) 
AVAILABILITY.—Any 
amount 
credited under clause (i) shall be made 
available on receipt, without fiscal year 
limitation, to cover the full costs of the 
audit and report. 
SEC. 602. AUTHORIZATION OF APPROPRIATIONS. 
There are authorized to be appropriated such sums 
as are necessary to carry out this title. 
Æ