I 
108TH CONGRESS 
1ST SESSION H. R. 2981
To provide for reform of management of Indian trust funds and assets 
under the jurisdiction of the Department of the Interior, and for other 
purposes. 
IN THE HOUSE OF REPRESENTATIVES 
JULY 25, 2003
Mr. UDALL of Colorado (for himself and Mr. RAHALL) introduced the 
following bill; which was referred to the Committee on Resources 
A BILL 
To provide for reform of management of Indian trust funds 
and assets under the jurisdiction of the Department of 
the Interior, 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. 
This Act may be cited as the ‘‘American Indian Trust 
Fund Management Reform Act Amendments Act of 
2003’’.
SEC. 2. DEFINITIONS. 
Section 2 of the American Indian Trust Fund Man-
agement Reform Act of 1994 (25 U.S.C. 4001) is amend-
ed—
(1) by redesignating paragraphs (1), (2), (3), 
(4), (5), and (6) as paragraphs (7), (4), (6), (5), 
(2), and (3), respectively, and moving those para-
graphs so as to appear in numerical order; and 
(2) by inserting before paragraph (2) (as redes-
ignated by paragraph (1)) the following: 
‘‘(1) AUDIT.—The term ‘audit’ means an audit 
using accounting procedures that conform to gen-
erally accepted accounting principles and auditing 
procedures that conform to chapter 75 of title 31, 
United States Code (commonly known as the ‘Single 
Audit Act of 1984’);’’; and 
(3) by adding at the end the following: 
‘‘(8) TRIBAL GOVERNMENT.—The term ‘tribal 
government’ means the governing body of an Indian 
tribe. 
‘‘(9) TRUST
ASSET.—The term ‘trust asset’ 
means any tangible property (such as land, a min-
eral, coal, oil or gas, a forest resource, an agricul-
tural resource, water, a water source, fish, or wild-
life) held by the Secretary for the benefit of an In-
dian tribe or an individual member of an Indian 
tribe in accordance with Federal law. 
‘‘(10) TRUST FUNDS.—The term ‘trust funds’ 
means—
‘‘(A) all monies or proceeds derived from 
trust assets; and 
‘‘(B) all funds held by the Secretary for 
the benefit of an Indian tribe or an individual 
member of an Indian tribe in accordance with 
Federal law. 
‘‘(11) TRUSTEE.—The term ‘trustee’ means the 
Secretary or any other person that is authorized to 
act as a trustee for trust assets and trust funds.’’. 
SEC. 3. RESPONSIBILITIES OF SECRETARY. 
Section 102 of the American Indian Trust Fund 
Management Reform Act of 1994 (25 U.S.C. 4011) is 
amended to read as follows: 
‘‘SEC. 102. RESPONSIBILITIES OF SECRETARY. 
‘‘(a) ACCOUNTING FOR DAILY AND ANNUAL BAL-
ANCES OF INDIAN TRUST FUNDS.—
‘‘(1) IN
GENERAL.—The Secretary shall ac-
count for the daily and annual balances of all trust 
funds. 
‘‘(2) PERIODIC
STATEMENT
OF
PERFORM-
ANCE.—
‘‘(A) IN
GENERAL.—Not later than 20 
business days after the close of the second cal-
endar quarter after the date of enactment of 
this paragraph, and not later than 20 business 
days after the close of each calendar quarter 
thereafter, the Secretary shall provide to each 
Indian tribe and individual Indian for whom the 
Secretary manages trust funds a statement of 
performance for the trust funds. 
‘‘(B) REQUIREMENTS.—Each statement 
under subparagraph (A) shall identify, with re-
spect to the period covered by the statement—
‘‘(i) the source, type, and status of the 
funds; 
‘‘(ii) the beginning balance of the 
funds; 
‘‘(iii) the gains and losses of the 
funds; 
‘‘(iv) receipts and disbursements of 
the funds; and 
‘‘(v) the ending balance of the funds. 
‘‘(3) AUDITS.—With respect to each account 
containing trust funds, the Secretary shall—
‘‘(A) for accounts with less than $1,000, 
group accounts separately to allow for statis-
tical sampling audit procedures; 
‘‘(B) for accounts containing more than 
$1,000 at any time during a given fiscal year—
‘‘(i) conduct, for each fiscal year, an 
audit of all trust funds; and 
‘‘(ii) include, in the first statement of 
performance after completion of the audit, 
a letter describing the results of the audit. 
‘‘(b) ADDITIONAL RESPONSIBILITIES.—The respon-
sibilities of the Secretary in carrying out the trust respon-
sibility of the United States include, but are not limited 
to—
‘‘(1) providing for adequate systems for ac-
counting for and reporting trust fund balances; 
‘‘(2) providing for adequate controls over re-
ceipts and disbursements; 
‘‘(3) providing for periodic, timely reconcili-
ations of financial records to ensure the accuracy of 
account information; 
‘‘(4) determining accurate cash balances; 
‘‘(5) preparing and supplying to account hold-
ers periodic account statements;
‘‘(6) establishing and publishing in the Federal 
Register consistent policies and procedures for trust 
fund management and accounting; 
‘‘(7) providing adequate staffing, supervision, 
and training for trust fund management and ac-
counting; and 
‘‘(8) managing natural resources located within 
the boundaries of Indian reservations and trust 
land.’’. 
SEC. 4. AFFIRMATION OF STANDARDS. 
Title I of the American Indian Trust Fund Manage-
ment Reform Act of 1994 (25 U.S.C. 4011 et seq.) is 
amended by adding at the end the following: 
‘‘SEC. 105. AFFIRMATION OF STANDARDS. 
‘‘Congress affirms that the proper discharge of trust 
responsibility of the United States requires, without limi-
tation, that the trustee, using the highest degree of care, 
skill, and loyalty—
‘‘(1) protect and preserve Indian trust assets 
from loss, damage, unlawful alienation, waste, and 
depletion; 
‘‘(2) ensure that any management of Indian 
trust assets required to be carried out by the Sec-
retary—
‘‘(A) promotes the interest of the beneficial 
owner; and 
‘‘(B) supports, to the maximum extent 
practicable in accordance with the trust respon-
sibility of the Secretary, the beneficial owner’s 
intended use of the assets; 
‘‘(3)(A) enforce the terms of all leases or other 
agreements that provide for the use of trust assets; 
and 
‘‘(B) take appropriate steps to remedy trespass 
on trust or restricted land; 
‘‘(4) promote tribal control and self-determina-
tion over tribal trust land and resources without di-
minishing the trust responsibility of the Secretary; 
‘‘(5) select and oversee persons that manage In-
dian trust assets; 
‘‘(6) confirm that Indian tribes that manage In-
dian trust assets in accordance with contracts and 
compacts authorized by the Indian Self-Determina-
tion and Education Assistance Act (25 U.S.C. 450 
et seq.) protect and prudently manage those Indian 
trust assets; 
‘‘(7) provide oversight and review of the per-
formance of the trust responsibility of the Secretary, 
including Indian trust asset and investment manage-
ment programs, operational systems, and informa-
tion systems; 
‘‘(8) account for and identify, collect, deposit, 
invest, and distribute, in a timely manner, income 
due or held on behalf of tribal and individual Indian 
account holders; 
‘‘(9) maintain a verifiable system of records 
that, at a minimum, is capable of identifying, with 
respect to a trust asset—
‘‘(A) the location of the trust asset; 
‘‘(B) the beneficial owners of the trust 
asset; 
‘‘(C) any legal encumbrances (such as 
leases or permits) applicable to the trust asset; 
‘‘(D) the user of the trust asset; 
‘‘(E) any rent or other payments made; 
‘‘(F) the value of trust or restricted land 
and resources associated with the trust asset; 
‘‘(G) dates of—
‘‘(i) collections; 
‘‘(ii) deposits; 
‘‘(iii) transfers; 
‘‘(iv) disbursements;
‘‘(v) imposition of third-party obliga-
tions (such as court-ordered child support 
or judgments); 
‘‘(vi) statements of earnings; 
‘‘(vii) investment instruments; and 
‘‘(viii) closure of all trust fund ac-
counts relating to the trust fund asset; 
‘‘(H) documents pertaining to actions 
taken to prevent or compensate for any dimin-
ishment of the Indian trust asset; and 
‘‘(I) documents that evidence the actions of 
the Secretary regarding the management and 
disposition of the Indian trust asset; 
‘‘(10) establish and maintain a system of 
records that—
‘‘(A) permits beneficial owners to obtain 
information regarding Indian trust assets in a 
timely manner; and 
‘‘(B) protects the privacy of that informa-
tion; 
‘‘(11) invest tribal and individual Indian trust 
funds to ensure that the trust account remains rea-
sonably productive for the beneficial owner con-
sistent with market conditions existing at the time 
at which investment is made;
‘‘(12) communicate with beneficial owners re-
garding the management and administration of In-
dian trust assets; and 
‘‘(13) protect treaty-based fishing, hunting, 
gathering, and similar rights-of-access and resource 
use on traditional tribal land.’’. 
SEC. 5. INDIAN PARTICIPATION IN TRUST FUND ACTIVI-
TIES. 
Section 202 of the American Indian Trust Fund 
Management Reform Act of 1994 (25 U.S.C. 4022) is 
amended by striking subsection (c) and inserting the fol-
lowing: 
‘‘(c) MANAGEMENT THROUGH SELF-DETERMINA-
TION AUTHORITY.—
‘‘(1) IN GENERAL.—An Indian tribe may use 
authority granted to the Indian tribe under the In-
dian Self-Determination and Education Assistance 
Act (25 U.S.C. 450 et seq.) to manage Indian trust 
funds and trust assets without terminating—
‘‘(A) the trust responsibility of the Sec-
retary; or 
‘‘(B) the trust status of the funds and as-
sets. 
‘‘(2) NO EFFECT ON TRUST RESPONSIBILITY.—
Nothing in this subsection diminishes or otherwise
impairs the trust responsibility of the United States 
with respect to the Indian people.’’. 
SEC. 6. DEPUTY SECRETARY FOR INDIAN AFFAIRS. 
(a) IN GENERAL.—Section 302 of the American In-
dian Trust Fund Management Reform Act of 1994 (25 
U.S.C. 4042) is amended to read as follows: 
‘‘SEC. 302. DEPUTY SECRETARY FOR INDIAN AFFAIRS. 
‘‘(a) ESTABLISHMENT.—
‘‘(1) IN GENERAL.—There is established within 
the Department the position of Deputy Secretary for 
Indian Affairs (referred to in this section as the 
‘Deputy Secretary’), who shall report directly to the 
Secretary. 
‘‘(2) APPOINTMENT.—The Deputy Secretary 
shall be appointed by the President, by and with the 
advice and consent of the Senate. 
‘‘(b) DUTIES.—
‘‘(1) IN
GENERAL.—The Deputy Secretary 
shall—
‘‘(A) oversee the Bureau of Indian Affairs; 
‘‘(B) be responsible for carrying out all du-
ties assigned to the Assistant Secretary for In-
dian Affairs as of the day before the date of en-
actment of the American Indian Trust Fund
Management Reform Act Amendments Act of 
2003; 
‘‘(C) oversee all trust fund and trust asset 
matters of the Department, including—
‘‘(i) administration and management 
of the Reform Office; 
‘‘(ii) financial and human resource 
matters of the Reform Office; and 
‘‘(iii) all duties relating to trust fund 
and trust asset matters; 
‘‘(D) engage in appropriate government-to-
government relations and consultations with In-
dian tribes and individual trust asset and trust 
fund account holders on matters involving trust 
asset and trust fund management and reform 
within the Department; and 
‘‘(E) carry out such other duties relating 
to Indian affairs as the Secretary may assign. 
‘‘(2) TRANSFER OF DUTIES OF ASSISTANT SEC-
RETARY.—As of the date of enactment of the Amer-
ican Indian Trust Fund Management Reform Act 
Amendments Act of 2003, all duties assigned to the 
Assistant Secretary for Indian Affairs shall be trans-
ferred to, and become the responsibility of, the Dep-
uty Secretary.