103D CONGRESS
2D SESSION
H. R. 4833
AN ACT
To reform the management of Indian Trust Funds, and
for other purposes.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
SECTION 1. SHORT TITLE; TABLE OF CONTENTS.
(a) SHORT TITLE.—This Act may be cited as the
‘‘American Indian Trust Fund Management Reform Act
of 1994’’.
(b) TABLE OF CONTENTS.—The table of contents for
this Act is as follows:
Sec. 1. Short title; table of contents.
Sec. 2. Definitions.
TITLE I—RECOGNITION OF TRUST RESPONSIBILITY
Sec. 101. Affirmative action required.
Sec. 102. Responsibility of Secretary to account for the daily and annual bal-
ances of Indian trust funds.
Sec. 103. Payment of interest on individual Indian money accounts.
Sec. 104. Authority for payment of claims for interest owed.
TITLE II—INDIAN TRUST FUND MANAGEMENT PROGRAM
Sec. 201. Purpose.
Sec. 202. Voluntary withdrawal from trust funds program.
Sec. 203. Judgment funds.
Sec. 204. Technical assistance.
Sec. 205. Grant program.
Sec. 206. Return of withdrawn funds.
Sec. 207. Savings provision.
Sec. 208. Report to Congress.
Sec. 209. Regulations.
TITLE III—SPECIAL TRUSTEE FOR AMERICAN INDIANS
Sec. 301. Purposes.
Sec. 302. Office of Special Trustee for American Indians.
Sec. 303. Authorities and functions of the special trustee.
Sec. 304. Reconciliation report.
Sec. 305. Staff and consultants.
Sec. 306. Advisory board.
TITLE IV—AUTHORIZATION OF APPROPRIATIONS
Sec. 401. Authorization of appropriations.
SEC. 2. DEFINITIONS.
For the purposes of this Act:
(1) The term ‘‘Special Trustee’’ means the Spe-
cial Trustee for American Indians appointed under
section 302.
(2) The term ‘‘Indian tribe’’ means any Indian
tribe, band, nation, or other organized group or com-
munity, including any Alaska Native village or re-
gional or village corporation as defined in or estab-
lished pursuant to the Alaska Native Claims Settle-
ment Act (85 Stat. 688), which is recognized as eli-
gible for the special programs and services provided
by the United States to Indians because of their sta-
tus as Indians.
(3) The term ‘‘Secretary’’ means the Secretary
of the Interior.
(4) The term ‘‘Office’’ means the Office of Spe-
cial Trustee for American Indians established by
section 302.
(5) The term ‘‘Bureau’’ means the Bureau of
Indian Affairs within the Department of the Inte-
rior.
(6) The term ‘‘Department’’ means the Depart-
ment of the Interior.
TITLE I—RECOGNITION OF
TRUST RESPONSIBILITY
SEC. 101. AFFIRMATIVE ACTION REQUIRED.
The first section of the Act of June 24, 1938 (25
U.S.C. 162a), is amended by adding at the end the follow-
ing new subsection:
‘‘(d) The Secretary’s proper discharge of the trust re-
sponsibilities of the United States shall include (but are
not limited to) the following:
‘‘(1) Providing adequate systems for accounting
for and reporting trust fund balances.
‘‘(2) Providing adequate controls over receipts
and disbursements.
‘‘(3) Providing periodic, timely reconciliations
to assure the accuracy of accounts.
‘‘(4) Determining accurate cash balances.
‘‘(5) Preparing and supplying account holders
with periodic statements of their account perform-
ance and with balances of their account which shall
be available on a daily basis.
‘‘(6) Establishing consistent, written policies
and procedures for trust fund management and ac-
counting.
‘‘(7) Providing adequate staffing, supervision,
and training for trust fund management and ac-
counting.
‘‘(8) Appropriately managing the natural re-
sources located within the boundaries of Indian res-
ervations and trust lands.’’.
SEC. 102. RESPONSIBILITY OF SECRETARY TO ACCOUNT
FOR THE DAILY AND ANNUAL BALANCES OF
INDIAN TRUST FUNDS.
(a) REQUIREMENT
TO ACCOUNT.—The Secretary
shall account for the daily and annual balance of all funds
held in trust by the United States for the benefit of an
Indian tribe or an individual Indian which are deposited
or invested pursuant to the Act of June 24, 1938 (25
U.S.C. 162a).
(b) PERIODIC STATEMENT OF PERFORMANCE.—Not
later than 20 business days after the close of a calendar
quarter, the Secretary shall provide a statement of per-
formance to each Indian tribe and individual with respect
to whom funds are deposited or invested pursuant to the
Act of June 24, 1938 (25 U.S.C. 162a). The statement,
for the period concerned, shall identify—
(1) the source, type, and status of the funds;
(2) the beginning balance;
(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
subsection (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 des-
ignated by paragraph (1) of this subsection) the fol-
lowing:
‘‘(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 re-
quest of the Secretary of the Interior, in public debt secu-
rities with maturities suitable to the needs of the fund in-
volved, as determined by the Secretary of the Interior, and
bearing interest at rates determined by the Secretary of
the Treasury, taking into consideration current market
yields on outstanding marketable obligations of the United
States of comparable securities.’’.
(b) WITHDRAWAL AUTHORITY.—The second sen-
tence of subsection (a) of the first section of the Act of
June 24, 1938 (25 U.S.C. 162a) is amended by inserting
‘‘to withdraw from the United States Treasury and’’ after
‘‘prescribe,’’.
(c) TECHNICAL
CORRECTION.—The second sub-
section (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 sub-
section (c).
(d) EFFECTIVE DATE.—The amendment made by
subsection (a) shall apply to interest earned on amounts
deposited or invested on or after the date of the enactment
of this Act.
SEC. 104. AUTHORITY FOR PAYMENT OF CLAIMS FOR IN-
TEREST 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
retroactive to the date that the Secretary began investing
individual Indian monies on a regular basis, to the extent
that the claim is identified—
(1) by a reconciliation process of individual In-
dian money accounts, or
(2) by the individual and presented to the Sec-
retary with supporting documentation, and is veri-
fied 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-determina-
tion, 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 ap-
prove such plan within 90 days of receipt and when ap-
proving 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
individuals or institutions that will be managing
the trust funds.
(B) The protection against substantial loss
of principal.
(c) DISSOLUTION OF TRUST RESPONSIBILITY.—Be-
ginning on the date funds are withdrawn pursuant to this
section, any trust responsibility or liability of the United
States with respect to such funds shall cease except as
provided for in section 207 of this title.
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 Con-
gress which provides for the secretarial management of
such judgment 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, fi-
nancial, and other expertise of the Department of
the Interior has been made fully available in an advi-
sory capacity to the Indian tribes to assist in the de-
velopment, implementation, and management of in-
vestment 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
investment plan;
(4) the implementation and management of
tribal 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 Indian tribe which has withdrawn trust funds
may choose to return any or all of the trust funds such
tribe has withdrawn by notifying the Secretary in writing
of its intention to return the funds to the control and man-
agement 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 com-
pensation.
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 pro-
mulgate 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
participation 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 Depart-
ment of the Interior an Office of Special Trustee for
American Indians to oversee and coordinate reforms
within the Department of practices relating to the
management 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, proce-
dures and systems of the Bureau, Minerals Manage-
ment Service, and Bureau of Land Management,
which carry out such trust responsibilities, are effec-
tive, 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 IN-
DIANS.
(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 Sec-
retary.
(b) SPECIAL TRUSTEE.—
(1) APPOINTMENT.—The Special Trustee shall
be appointed by the President, by and with the ad-
vice and consent of the Senate, from among individ-
uals who possess demonstrated ability in general
management of large governmental or business enti-
ties and particular knowledge of trust fund manage-
ment, management of financial institutions, and the
investment 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 Execu-
tive 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
identified in the strategic plan have been imple-
mented 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 es-
tablishment, of the Office if the Special Trustee con-
cludes that continuation or permanent establishment
is necessary for the efficient discharge of the Sec-
retary’s trust responsibilities.
(3) TERMINATION DATE.—The Office shall ter-
minate 180 legislative days after the date on which
the notice to the Congress under paragraph (2) is
provided, unless the Congress extends the authorities
of the Special Trustee. For the purposes of this ses-
sion, 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
prepare and, after consultation with Indian tribes
and appropriate Indian organizations, submit to the
Secretary and the Committee on Natural Resources
of the House of Representatives and the Committee
on Indian 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 en-
sure proper and efficient discharge of the Sec-
retary’s trust responsibilities to Indian tribes and in-
dividual Indians 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
Department, the Bureau, the Bureau of Land
Management, and the Minerals Management
Service necessary to ensure the proper and effi-
cient discharge of the Secretary’s trust respon-
sibilities 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
options for the investment of their trust ac-
counts, in a manner consistent with the trust
responsibilities of the Secretary, in ways that
will help promote economic development in their
communities.
(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 re-
form efforts within the Bureau, the Bureau of Land
Management, and the Minerals Management Service
relating to the trust responsibilities of the Secretary
to ensure the establishment of policies, procedures,
systems and practices to allow the Secretary to dis-
charge his trust responsibilities in compliance with
this Act.
(2) BUREAU OF INDIAN AFFAIRS.—
(A) MONITOR RECONCILIATION OF TRUST
ACCOUNTS.—The Special Trustee shall monitor
the reconciliation of tribal and Individual In-
dian Money trust accounts to ensure that the
Bureau provides the account holders, with a
fair and accurate accounting of all trust ac-
counts.
(B) INVESTMENTS.—The Special Trustee
shall ensure that the Bureau establishes appro-
priate policies and procedures, and develops
necessary systems, that will allow it—
(i) properly to account for and invest,
as well as maximize, in a manner consist-
ent with the statutory restrictions imposed
on the Secretary’s investment options, the
return on the investment of all trust fund
monies, and
(ii) to prepare accurate and timely re-
ports to account holders (and others, as re-
quired) on a periodic basis regarding all
collections, 
disbursements, 
investments,
and return on investments related to their
accounts.
(C) OWNERSHIP AND LEASE DATA.—The
Special Trustee shall ensure that the Bureau
establishes policies and practices to maintain
complete, accurate, and timely data regarding
the ownership and lease of Indian lands.
(3) BUREAU
OF
LAND
MANAGEMENT.—The
Special Trustee shall ensure that the Bureau of
Land Management establishes policies and practices
adequate to enforce compliance with Federal re-
quirements for drilling, production, accountability,
environmental protection, and safety with respect to
the lease of Indian lands.
(4) MINERALS
MANAGEMENT
SERVICE.—The
Special Trustee shall ensure that the Minerals Man-
agement Service establishes policies and practices to
enforce compliance by lessees of Indian lands with
all requirements for timely and accurate reporting of
production and payment of lease royalties and other
revenues, including the audit of leases to ensure that
lessees are accurately reporting production levels and
calculating royalty payments.
(c) COORDINATION OF POLICIES.—
(1) IN GENERAL.—The Special Trustee shall
ensure that—
(A) the policies, procedures, practices, and
systems of the Bureau, the Bureau of Land
Management, and the Minerals Management
Service related to the discharge of the Sec-
retary’s trust responsibilities are coordinated,
consistent, and integrated, and
(B) the Department prepares comprehen-
sive and coordinated written policies and proce-
dures for each phase of the trust management
business cycle.
(2) STANDARDIZED PROCEDURES.—The Special
Trustee shall ensure that the Bureau imposes stand-
ardized trust fund accounting procedures throughout
the Bureau.
(3) INTEGRATION
OF
LEDGER
WITH
INVEST-
MENT SYSTEM.—The Special Trustee shall ensure
that the trust fund investment, general ledger, and
subsidiary accounting systems of the Bureau are in-
tegrated and that they are adequate to support the
trust fund investment needs of the Bureau.
(4) INTEGRATION OF LAND RECORDS, TRUST
FUNDS ACCOUNTING, AND ASSET MANAGEMENT SYS-
TEMS AMONG AGENCIES.—The Special Trustee shall
ensure that—
(A) the land records system of the Bureau
interfaces with the trust fund accounting sys-
tem, and
(B) the asset management systems of the
Minerals Management Service and the Bureau
of Land Management interface with the appro-
priate asset management and accounting sys-
tems of the Bureau, including ensuring that—
(i) the Minerals Management Service
establishes policies and procedures that
will allow it to properly collect, account for,
and disburse to the Bureau all royalties
and other revenues generated by produc-
tion from leases on Indian lands; and
(ii) the Bureau of Land Management
and the Bureau provide Indian landholders
with accurate and timely reports on a peri-
odic basis that cover all transactions relat-
ed to leases of Indian resources.
(5) TRUST MANAGEMENT PROGRAM BUDGET.—
(A) DEVELOPMENT
AND
SUBMISSION.—
The Special Trustee shall develop for each fiscal
year, with the advice of program managers of
each office within the Bureau of Indian Affairs,
Bureau of Land Management and Minerals
Management Service that participates in trust
management, including the management of
trust funds or natural resources, or which is
charged with any responsibility under the com-
prehensive strategic plan prepared under sub-
section (a) of this section, a consolidated Trust
Management program budget proposal that
would enable the Secretary to efficiently and ef-
fectively discharge his trust responsibilities and
to implement the comprehensive strategic plan,
and shall submit such budget proposal to the
Secretary, the Director of the Office of Manage-
ment and Budget, and to the Congress.
(B) DUTY
OF
CERTAIN
PROGRAM
MAN-
AGERS.—Each program manager participating
in trust management or charged with respon-
sibilities under the comprehensive strategic
plans shall transmit his office’s budget request
to the Special Trustee at the same time as such
request is submitted to his superiors (and be-
fore submission to the Office of Management
and Budget) in the preparation of the budget of
the President submitted to the Congress under
section 1105(a) of title 31, United States Code.
(C) CERTIFICATION
OF
ADEQUACY
OF
BUDGET
REQUEST.—The 
Special 
Trustee
shall—
(i) review each budget request submit-
ted under subparagraph (B);
(ii) certify in writing as to the ade-
quacy of such request to discharge, effec-
tively and efficiently, the Secretary’s trust
responsibilities and to implement the com-
prehensive strategic plan; and
(iii) notify the program manager of
the Special Trustee’s certification under
clause (ii).
(D) MAINTENANCE
OF
RECORDS.—The
Special Trustee shall maintain records of cer-
tifications made under paragraph (3)(B).
(E) LIMITATION ON REPROGRAMMING OR
TRANSFER.—No program manager shall sub-
mit, and no official of the Department of the
Interior may approve or otherwise authorize, a
reprogramming or transfer request with respect
to any funds appropriated for trust manage-
ment which is included in the Trust Manage-
ment Program Budget unless such request has
been approved by the Special Trustee.
(d) PROBLEM RESOLUTION.—The Special Trustee
shall provide such guidance as necessary to assist Depart-
ment personnel in identifying problems and options for re-
solving problems, and in implementing reforms to Depart-
ment, Bureau, Bureau of Land Management, and Min-
erals Management Service policies, procedures, systems
and practices.
(e) SPECIAL TRUSTEE ACCESS.—The Special Trust-
ee, and his staff, shall have access to all records, reports,
audits, reviews, documents, papers, recommendations, files
and other material, as well as to any officer and employee,
of the Department and any office or bureau thereof, as
the Special Trustee deems necessary for the accomplish-
ment of his duties under this Act.
(f) ANNUAL REPORT.—The Special Trustee shall re-
port to the Secretary and the Committee on Natural Re-
sources of the House of Representatives and the Commit-
tee on Indian Affairs of the Senate each year on the
progress of the Department, the Bureau, the Bureau of
Land Management, and the Minerals Management Service
in implementing the reforms identified in the comprehen-
sive strategic plan under subsection (a)(1) and in meeting
the timetable established in the strategic plan under sub-
section (a)(2)(C).
SEC. 304. RECONCILIATION REPORT.
The Secretary shall transmit to the Committee on
Natural Resources of the House of Representatives and
the Committee on Indian Affairs of the Senate, by May
31, 1996, a report identifying for each tribal trust fund
account for which the Secretary is responsible a balance
reconciled as of September 30, 1995. In carrying out this