SECTION 1. SHORT TITLE; TABLE OF CONTENTS. 
(a) SHORT TITLE.—This Act may be cited as the 
‘‘Department of the Interior Tribal Self-Governance Act 
of 2010’’. 
(b) TABLE OF CONTENTS.—The table of contents of 
this Act is as follows: 
Sec. 1. Short title; table of contents. 
TITLE I—INDIAN SELF-DETERMINATION 
Sec. 101. Definitions; reporting and audit requirements; application of provi-
sions. 
Sec. 102. Contracts by Secretary of Interior. 
Sec. 103. Administrative provisions. 
Sec. 104. Contract funding and indirect costs. 
Sec. 105. Contract or grant specifications. 
TITLE II—TRIBAL SELF-GOVERNANCE 
Sec. 201. Tribal self-governance. 
TITLE I—INDIAN SELF- 
DETERMINATION 
SEC. 101. DEFINITIONS; REPORTING AND AUDIT REQUIRE-
MENTS; APPLICATION OF PROVISIONS. 
(a) DEFINITIONS.—Section 4 of the Indian Self-De-
termination and Education Assistance Act (25 U.S.C. 
450b) is amended by striking subsection (j) and inserting 
the following: 
‘‘(j) ‘self-determination contract’ means a contract 
entered into under title I (or a grant or cooperative agree-
ment used under section 9) between a tribal organization 
and the appropriate Secretary for the planning, conduct, 
and administration of programs or services that are other-
wise provided to Indian tribes and members of Indian 
tribes pursuant to Federal law, subject to the condition 
that, except as provided in section 105(a)(3), no contract 
entered into under title I (or grant or cooperative agree-
ment used under section 9) shall be— 
‘‘(1) considered to be a procurement contract; 
or 
‘‘(2) except as provided in section 107(a)(1), 
subject to any Federal procurement law (including 
regulations);’’. 
(b) REPORTING AND AUDIT REQUIREMENTS.—Sec-
tion 5(b) of the Indian Self-Determination and Education 
Assistance Act (25 U.S.C. 450c(b)) is amended— 
(1) by striking ‘‘after completion of the project 
or undertaking referred to in the preceding sub-
section of this section’’ and inserting ‘‘after the re-
tention period for the report that is submitted to the 
Secretary under subsection (a)’’; and 
(2) by adding at the end the following: ‘‘The re-
tention period shall be defined in regulations pro-
mulgated by the Secretary pursuant to section 
415.’’. 
(c) APPLICATION OF OTHER PROVISIONS.—Sections 
4, 5, 6, 7, 102(c), 104, 105(a)(1), 105(f), 110, and 111 
of the Indian Self-Determination and Education Assist-
ance Act, as amended (25 U.S.C. 450 et seq.) (Public Law 
93–638; 88 Stat. 2203) and section 314 of the Depart-
ment of the Interior and Related Agencies Appropriations 
Act, 1991 (Public Law 101–512; 104 Stat. 1959), apply 
to compacts and funding agreements entered into under 
title IV. 
SEC. 102. CONTRACTS BY SECRETARY OF INTERIOR. 
Section 102 of the Indian Self-Determination and 
Education Assistance Act (25 U.S.C. 450f) is amended— 
(1) in subsection (c)(2), by striking ‘‘economic 
enterprises’’ and all that follows through ‘‘except 
that’’ and inserting ‘‘economic enterprises (as de-
fined in section 3 of the Indian Financing Act of 
1974 (25 U.S.C. 1452)), except that’’; and 
(2) by adding at the end the following: 
‘‘(f) GOOD FAITH REQUIREMENT.—In the negotia-
tion of contracts and funding agreements, the Secretary 
shall— 
‘‘(1) at all times negotiate in good faith to 
maximize implementation of the self-determination 
policy; and 
‘‘(2) carry out this Act in a manner that maxi-
mizes the policy of tribal self-determination, in a 
manner consistent with the purposes specified in sec-
tion 3.
‘‘(g) RULE OF CONSTRUCTION.—Each provision of 
this Act and each provision of a contract or funding agree-
ment shall be liberally construed for the benefit of the In-
dian tribe participating in self-determination, and any am-
biguity shall be resolved in favor of the Indian tribe.’’. 
SEC. 103. ADMINISTRATIVE PROVISIONS. 
Section 105 of the Indian Self-Determination and 
Education Assistance Act (25 U.S.C. 450j) is amended— 
(1) in subsection (b), in the first sentence, by 
striking ‘‘pursuant to’’ and all that follows through 
‘‘of this Act’’ and inserting ‘‘pursuant to sections 
102 and 103’’; and 
(2) by adding at the end the following: 
‘‘(m) INTERPRETATION BY SECRETARY.—Except as 
otherwise provided by law, the Secretary shall interpret 
all Federal laws (including regulations) and Executive or-
ders in a manner that facilitates, to the maximum extent 
practicable— 
‘‘(1) the inclusion in self-determination con-
tracts and funding agreements of— 
‘‘(A) applicable programs, services, func-
tions, and activities (or portions thereof); and 
‘‘(B) funds associated with those pro-
grams, services, functions, and activities;
‘‘(2) the implementation of self-determination 
contracts and funding agreements; and 
‘‘(3) the achievement of tribal health objec-
tives.’’. 
SEC. 104. CONTRACT FUNDING AND INDIRECT COSTS. 
Section 106(a)(3) of the Indian Self-Determination 
and Education Assistance Act (25 U.S.C. 450j–1(a)(3)) 
is amended— 
(1) in subparagraph (A)— 
(A) in clause (i), by striking ‘‘, and’’ and 
inserting ‘‘; and’’; and 
(B) in clause (ii), by striking ‘‘expense re-
lated to the overhead incurred’’ and inserting 
‘‘expense incurred by the governing body of the 
Indian tribe or tribal organization and any 
overhead expense incurred’’; 
(2) by redesignating subparagraph (B) as sub-
paragraph (C); and 
(3) by inserting after subparagraph (A) the fol-
lowing: 
‘‘(B) In calculating the reimbursement rate 
for expenses described in subparagraph (A)(ii), 
not less than 50 percent of the expenses de-
scribed in subparagraph (A)(ii) that are in-
curred by the governing body of an Indian tribe
or tribal organization relating to a Federal pro-
gram, function, service, or activity carried out 
pursuant to the contract shall be considered to 
be reasonable and allowable.’’. 
SEC. 105. CONTRACT OR GRANT SPECIFICATIONS. 
Section 108 of the Indian Self-Determination and 
Education Assistance Act (25 U.S.C. 450l) is amended— 
(1) in subsection (a)(2), by inserting ‘‘subject 
to subsections (a) and (b) of section 102,’’ before 
‘‘contain’’; and 
(2) in subsection (f)(2)(A)(ii) of the model 
agreement contained in subsection (c), by inserting 
‘‘subject to subsections (a) and (b) of section 102 of 
the Indian Self-Determination and Education Assist-
ance Act (25 U.S.C. 450f),’’ before ‘‘such other pro-
visions’’. 
TITLE II—TRIBAL SELF- 
GOVERNANCE 
SEC. 201. TRIBAL SELF-GOVERNANCE. 
Title IV of the Indian Self-Determination and Edu-
cation Assistance Act (25 U.S.C. 458aa et seq.) is amend-
ed to read as follows:
‘‘TITLE IV—TRIBAL SELF- 
GOVERNANCE 
‘‘SEC. 401. DEFINITIONS. 
‘‘In this title: 
‘‘(1) COMPACT.—The term ‘compact’ means a 
self-governance compact entered into under section 
404. 
‘‘(2) CONSTRUCTION PROGRAM; CONSTRUCTION 
PROJECT.—The term ‘construction program’ or ‘con-
struction project’ means a tribal undertaking relat-
ing to the administration, planning, environmental 
determination, design, construction, repair, improve-
ment, or expansion of roads, bridges, buildings, 
structures, systems, or other facilities for purposes 
of housing, law enforcement, detention, sanitation, 
water supply, education, administration, community, 
health, irrigation, agriculture, conservation, flood 
control, transportation, or port facilities, or for other 
tribal purposes. 
‘‘(3) DEPARTMENT.—The term ‘Department’ 
means the Department of the Interior. 
‘‘(4) FUNDING AGREEMENT.—The term ‘fund-
ing agreement’ means a funding agreement entered 
into under section 405.
‘‘(5) 
GROSS
MISMANAGEMENT.—The 
term 
‘gross mismanagement’ means a significant viola-
tion, shown by a preponderance of the evidence, of 
a compact, funding agreement, or statutory or regu-
latory requirement applicable to Federal funds— 
‘‘(A) for a program administered by an In-
dian tribe; or 
‘‘(B) under a compact or funding agree-
ment that results in a significant reduction of 
funds available for the programs assumed by an 
Indian tribe. 
‘‘(6) INHERENT
FEDERAL
FUNCTION.—The 
term ‘inherent Federal function’ means a Federal 
function that may not legally be delegated to an In-
dian tribe. 
‘‘(7) PROGRAM.—The term ‘program’ means 
any program, function, service, or activity (or por-
tion thereof) within the Department that is included 
in a funding agreement. 
‘‘(8) SECRETARY.—The term ‘Secretary’ means 
the Secretary of the Interior. 
‘‘(9) SELF-GOVERNANCE.—The term ‘self-gov-
ernance’ means the Tribal Self-Governance Program 
established under section 402.
‘‘(10) TRIBAL SHARE.—The term ‘tribal share’ 
means an Indian tribe’s portion of all funds and re-
sources that— 
‘‘(A) support any program within the Bu-
reau of Indian Affairs, the Office of Special 
Trustee, or the Office of the Assistant Sec-
retary for Indian Affairs; and 
‘‘(B) are not required by the Secretary for 
the performance of an inherent Federal func-
tion. 
‘‘SEC. 402. ESTABLISHMENT. 
‘‘The Secretary shall establish and carry out a pro-
gram within the Department to be known as the ‘Tribal 
Self-Governance Program’. 
‘‘SEC. 403. SELECTION OF PARTICIPATING INDIAN TRIBES. 
‘‘(a) IN GENERAL.— 
‘‘(1) PARTICIPANTS.— 
‘‘(A) IN GENERAL.—The Secretary, acting 
through the Director of the Office of Self-Gov-
ernance, may select up to 50 new Indian tribes 
per year from those eligible under subsection 
(b) to participate in self-governance. 
‘‘(B) JOINT PARTICIPATION.—On the re-
quest of each participating Indian tribe, 2 or 
more otherwise eligible Indian tribes may be
treated as a single Indian tribe for the purpose 
of participating in self-governance. 
‘‘(2) OTHER
AUTHORIZED
INDIAN
TRIBE
OR 
TRIBAL ORGANIZATION.—If an Indian tribe author-
izes another Indian tribe or a tribal organization to 
plan for or carry out a program on its behalf under 
this title, the authorized Indian tribe or tribal orga-
nization shall have the rights and responsibilities of 
the authorizing Indian tribe (except as otherwise 
provided in the authorizing resolution). 
‘‘(3) JOINT PARTICIPATION.—2 or more Indian 
tribes that are not otherwise eligible under sub-
section (b) may be treated as a single Indian tribe 
for the purpose of participating in self-governance as 
a tribal organization if— 
‘‘(A) each Indian tribe so requests; and 
‘‘(B) the tribal organization itself, or at 
least 1 of the Indian tribes participating in the 
tribal organization, is eligible under subsection 
(b). 
‘‘(4) TRIBAL WITHDRAWAL FROM A TRIBAL OR-
GANIZATION.— 
‘‘(A) IN GENERAL.—An Indian tribe that 
withdraws from participation in a tribal organi-
zation, in whole or in part, shall be entitled to
‘‘(F) RETURN TO MATURE CONTRACT STA-
TUS.—If an Indian tribe elects to operate all or 
some programs carried out under a compact or 
funding agreement under this title through a 
self-determination contract under title I, at the 
option of the Indian tribe, the resulting self-de-
termination contract shall be a mature self-de-
termination contract as long as the Indian tribe 
meets the requirements set forth in section 
4(h). 
‘‘(b) ELIGIBILITY.—To be eligible to participate in 
self-governance, an Indian tribe shall— 
‘‘(1) successfully complete the planning phase 
described in subsection (c); 
‘‘(2) request participation in self-governance by 
resolution or other official action by the tribal gov-
erning body; and 
‘‘(3) demonstrate, for the 3 fiscal years pre-
ceding the date on which the Indian tribe requests 
participation, financial stability and financial man-
agement capability as evidenced by the Indian tribe 
having no uncorrected significant and material audit 
exceptions in the required annual audit of its self- 
determination or self-governance agreements with 
any Federal agency.