(3) the gains and losses;
(4) receipts and disbursements; and
(5) the ending balance.
(c) ANNUAL AUDIT.—The Secretary shall cause to be
conducted an annual audit on a fiscal year basis of all
funds held in trust by the United States for the benefit of
an Indian tribe or an individual Indian which are depos-
ited or invested pursuant to the Act of June 24, 1938 (25
U.S.C. 162a), and shall include a letter relating to the audit
in the first statement of performance provided under sub-
section (b) after the completion of the audit.
SEC. 103. PAYMENT OF INTEREST ON INDIVIDUAL INDIAN
MONEY ACCOUNTS.
(a) PAYMENT OF INTEREST.—The first section of the
Act of February 12, 1929 (25 U.S.C. 161a), is amended—
(1) by striking out ‘‘That all’’ and inserting in
lieu thereof ‘‘That (a) all’’; and
(2) by adding after subsection (a) (as designated
by paragraph (1) of this subsection) the following:
‘‘(b) All funds held in trust by the United States and
carried in principal accounts on the books of the United
States Treasury to the credit of individual Indians shall
be invested by the Secretary of the Treasury, at the request
of the Secretary of the Interior, in public debt securities
with maturities suitable to the needs of the fund involved,
as determined by the Secretary of the Interior, and bearing
interest at rates determined by the Secretary of the Treas-
ury, taking into consideration current market yields on out-
standing marketable obligations of the United States of
comparable securities.’’.
(b) WITHDRAWAL AUTHORITY.—The second sentence of
the first section of the Act of June 24, 1938 (25 U.S.C.
162a) is amended by inserting ‘‘to withdraw from the Unit-
ed States Treasury and’’ after ‘‘prescribe,’’.
(c) TECHNICAL CORRECTION.—The second subsection
(b) of the first section of the Act of June 24, 1938 (25 U.S.C.
162a), as added by section 302 of Public Law 101–644 (104
Stat. 4667), is hereby redesignated as subsection (c).
(d) EFFECTIVE DATE.—The amendment made by sub-
section (a) shall apply to interest earned on amounts depos-
ited or invested on or after the date of the enactment of
this Act.
SEC. 104. AUTHORITY FOR PAYMENT OF CLAIMS FOR INTER-
EST OWED.
The Secretary shall make payments to an individual
Indian in full satisfaction of any claim of such individual
for interest on amounts deposited or invested on behalf of
such individual before the date of enactment of this Act ret-
roactive to the date that the Secretary began investing indi-
vidual Indian monies on a regular basis, to the extent that
the claim is identified—
(1) by a the reconciliation process of individual
Indian money accounts, or
(2) by the individual and presented to the Sec-
retary with supporting documentation, and is verified
by the Secretary pursuant to the Department’s policy
for addressing accountholder losses.
TITLE II—INDIAN TRUST FUND
MANAGEMENT PROGRAM
SEC. 201. PURPOSE.
The purpose of this title is to allow tribes an oppor-
tunity to manage tribal funds currently held in trust by
the United States and managed by the Secretary through
the Bureau, that, consistent with the trust responsibility of
the United States and the principles of self-determination,
will—
(1) give Indian tribal governments greater con-
trol over the management of such trust funds; or
(2) otherwise demonstrate how the principles of
self-determination can work with respect to the man-
agement of such trust funds, in a manner consistent
with the trust responsibility of the United States.
SEC. 202. VOLUNTARY WITHDRAWAL FROM TRUST FUNDS
PROGRAM.
(a) IN GENERAL.—An Indian tribe may, in accord-
ance with this section, submit a plan to withdraw some or
all funds held in trust for such tribe by the United States
and managed by the Secretary through the Bureau.
(b) APPROVAL OF PLAN.—The Secretary shall approve
such plan within 90 days of receipt and when approving
the plan, the Secretary shall obtain the advice of the Special
Trustee or prior to the appointment of such Special Trustee,
the Director of the Office of Trust Fund Management within
the Bureau. Such plan shall meet the following conditions:
(1) Such plan has been approved by the appro-
priate Indian tribe and is accompanied by a resolu-
tion from the tribal governing body approving the
plan.
(2) The Secretary determines such plan to be
reasonable after considering all appropriate factors,
including (but not limited to) the following:
(A) The capability and experience of the in-
dividuals or institutions that will be managing
the trust funds.
(B) The protection against substantial loss
of principal.
(c) DISSOLUTION OF TRUST RESPONSIBILITY.—Begin-
ning on the date funds are withdrawn pursuant to this sec-
tion, any trust responsibility or liability of the United
States with respect to such funds shall cease.
SEC. 203. JUDGMENT FUNDS.
(a) IN GENERAL.—The Secretary is authorized to ap-
prove plans under section 202 of this title for the with-
drawal of judgment funds held by the Secretary.
(b) LIMITATION.—Only such funds held by the Sec-
retary under the terms of the Indian Judgment Funds Use
or Distribution Act (25 U.S.C. 1401) or an Act of Congress
which provides for the secretarial management of such judg-
ment funds shall be included in such plans.
(c) SECRETARIAL DUTIES.—In approving such plans,
the Secretary shall ensure—
(1) that the purpose and use of the judgment
funds identified in the previously approved judgment
fund plan will continue to be followed by the Indian
tribe in the management of the judgment funds; and
(2) that only funds held for Indian tribes may
be withdrawn and that any funds held for individual
tribal members are not to be included in the plan.
SEC. 204. TECHNICAL ASSISTANCE.
The Secretary shall—
(1) directly or by contract, provide Indian tribes
with technical assistance in developing, implement-
ing, and managing Indian trust fund investment
plans; and
(2) among other things, ensure that legal, finan-
cial, and other expertise of the Department of the In-
terior has been made fully available in an advisory
capacity to the Indian tribes to assist in the develop-
ment, implementation, and management of invest-
ment plans.
SEC. 205. GRANT PROGRAM.
(a) GENERAL AUTHORITY.—The Secretary is author-
ized to award grants to Indian tribes for the purpose of
developing and implementing plans for the investment of
Indian tribal trust funds.
(b) USE OF FUNDS.—The purposes for which funds
provided under this section may be used include (but are
not limited to)—
(1) the training and education of employees re-
sponsible for monitoring the investment of trust
funds;
(2) the building of tribal capacity for the invest-
ment and management of trust funds;
(3) the development of a comprehensive tribal in-
vestment plan;
(4) the implementation and management of trib-
al trust fund investment plans; and
(5) such other purposes related to this title that
the Secretary deems appropriate.
SEC. 206. RETURN OF WITHDRAWN FUNDS.
Subject to such conditions as the Secretary may pre-
scribe, any tribe which has withdrawn trust funds may
choose to return any or all of the trust funds it has with-
drawn by notifying the Secretary in writing of its intention
to return the funds to the control and management of the
Secretary.
SEC. 207. SAVINGS PROVISION.
By submitting or approving a plan under this title,
neither the tribe nor the Secretary shall be deemed to have
accepted the account balance as accurate or to have waived
any rights regarding such balance and to seek compensa-
tion.
SEC. 208. REPORT TO CONGRESS.
The Secretary shall, beginning one year after the date
of the enactment of this Act, submit an annual report to
the Committee on Natural Resources of the House of Rep-
resentatives and the Committee on Indian Affairs of the
Senate on the implementation of programs under this title.
Such report shall include recommendations (if any) for
changes necessary to better implement the purpose of this
title.
SEC. 209. REGULATIONS.
(a) IN GENERAL.—Not later than 12 months after the
date of enactment of this title, the Secretary shall promul-
gate final regulations for the implementation of this title.
All regulations promulgated pursuant to this title shall be
developed by the Secretary with the full and active partici-
pation of the Indian tribes with trust funds held by the
Secretary and other affected Indian tribes.
(b) EFFECT.—The lack of promulgated regulations
shall not limit the effect of this title.
TITLE III—SPECIAL TRUSTEE
FOR AMERICAN INDIANS
SEC. 301. PURPOSES.
The purposes of this title are—
(1) to provide for more effective management of,
and accountability for the proper discharge of, the
Secretary’s trust responsibilities to Indian tribes and
individual Indians by establishing in the Department
of the Interior an Office of Special Trustee for Amer-
ican Indians to oversee and coordinate reforms within
the Department of practices relating to the manage-
ment and discharge of such responsibilities;
(2) to ensure that reform of such practices in the
Department is carried out in a unified manner and
that reforms of the policies, practices, procedures and
systems of the Bureau, Minerals Management Service,
and Bureau of Land Management, which carry out
such trust responsibilities, are effective, consistent,
and integrated; and
(3) to ensure the implementation of all reforms
necessary for the proper discharge of the Secretary’s
trust responsibilities to Indian tribes and individual
Indians.
SEC. 302. OFFICE OF SPECIAL TRUSTEE FOR AMERICAN
INDIANS.
(a) ESTABLISHMENT.—There is hereby established
within the Department of the Interior the Office of Special
Trustee for American Indians. The Office shall be headed
by the Special Trustee who shall report directly to the
Secretary.
(b) SPECIAL TRUSTEE.—
(1) APPOINTMENT.—The Special Trustee shall be
appointed by the President, by and with the advice
and consent of the Senate, from among individuals
who possess demonstrated ability in general manage-
ment of large governmental or business entities and
particular knowledge of trust fund management,
management of financial institutions, and the invest-
ment of large sums of money.
(2) COMPENSATION.—The Special Trustee shall
be paid at a rate determined by the Secretary to be
appropriate for the position, but not less than the rate
of basic pay payable at Level II of the Executive
Schedule under section 5313 of title 5, United States
Code.
(c) TERMINATION OF OFFICE.—
(1) CONDITIONED
UPON
IMPLEMENTATION
OF
REFORMS.—The Special Trustee, in proposing a ter-
mination date under section 303(a)(2)(C), shall en-
sure continuation of the Office until all reforms iden-
tified in the strategic plan have been implemented to
the satisfaction of the Special Trustee.
(2) 30-DAY NOTICE.—Thirty days prior to the
termination date proposed in the plan submitted
under this section, the Special Trustee shall notify the
Secretary and the Congress in writing of the progress
in implementing the reforms identified in the plan.
The Special Trustee, at that time, may recommend
the continuation, or the permanent establishment, of
the Office if the Special Trustee concludes that con-
tinuation or permanent establishment is necessary for
the efficient discharge of the Secretary’s trust respon-
sibilities.
(3) TERMINATION DATE.—The Office shall termi-
nate 180 legislative days after the date on which the
notice to the Congress under paragraph (2) is pro-
vided, unless the Congress extends the authorities of
the Special Trustee. For the purposes of this session,
a legislative day is a day on which either House of
the Congress is in session.
SEC. 303. AUTHORITIES AND FUNCTIONS OF THE SPECIAL
TRUSTEE.
(a) COMPREHENSIVE STRATEGIC PLAN.—
(1) IN GENERAL.—The Special Trustee shall pre-
pare and, after consultation with Indian tribes and
appropriate Indian organizations, submit to the Sec-
retary and the Committee on Natural Resources of the
House of Representatives and the Committee on In-
dian Affairs of the Senate, within one year after the
initial appointment is made under section 302(b), a
comprehensive strategic plan for all phases of the
trust management business cycle that will ensure
proper and efficient discharge of the Secretary’s trust
responsibilities to Indian tribes and individual Indi-
ans in compliance with this Act.
(2) PLAN REQUIREMENTS.—The plan prepared
under paragraph (1) shall include the following:
(A) Identification of all reforms to the poli-
cies, procedures, practices and systems of the De-
partment, the Bureau, the Bureau of Land Man-
agement, and the Minerals Management Service
necessary to ensure the proper and efficient dis-
charge of the Secretary’s trust responsibilities in
compliance with this Act.
(B) Provisions for opportunities for Indian
tribes to assist in the management of their trust
accounts and to identify for the Secretary op-
tions for the investment of their trust accounts,
in a manner consistent with the trust respon-
sibilities of the Secretary, in ways that will help
promote economic development in their commu-
nities.
(C) A timetable for implementing the re-
forms identified in the plan, including a date for
the proposed termination of the Office.
(b) DUTIES.—
(1) GENERAL
OVERSIGHT
OF
REFORM
EF-
FORTS.—The Special Trustee shall oversee all reform
efforts within the Bureau, the Bureau of Land Man-
agement, and the Minerals Management Service relat-
ing to the trust responsibilities of the Secretary to en-
sure the establishment of policies, procedures, systems
and practices to allow the Secretary to discharge his
trust responsibilities in compliance with this Act.
(2) BUREAU OF INDIAN AFFAIRS.—