I
105TH CONGRESS
1ST SESSION
H. R. 2743
To reduce the fractionated ownership of Indian lands, and for other purposes.
IN THE HOUSE OF REPRESENTATIVES
OCTOBER 24, 1997
Mr. YOUNG of Alaska (by request) introduced the following bill; which was
referred to the Committee on Resources
A BILL
To reduce the fractionated ownership of Indian lands, 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 ‘‘Indian Land Consoli-
dation Amendment Act of 1997’’.
SEC. 2. FINDINGS.
Congress finds the following:
(1) In the 1800’s and early 1900’s, the United
States sought to assimilate Indian people into the
surrounding non-Indian culture by allotting tribal
lands to individual tribal members.
(2) Many trust allotments were taken out of
trust status and sold by their Indian owners.
(3) The trust periods for trust allotments have
been extended indefinitely; however, because of the
inheritance provisions in the original treaties or al-
lotment Acts, the ownership of many of the allot-
ments that have remained in trust status have be-
come fractionated into hundreds or thousands of in-
terests many of which represent less than 2 percent
of the total interest in the allotment.
(4) Congress has authorized acquisition of lands
held in trust for individual Indians and many of
these lands have become and continue to be
fractionated by subsequent inheritance.
(5) These fractional interests provide little or
no return to their beneficial owners and cost the
United States inordinate amounts in administrative
costs.
(6) In 1983, Congress enacted the Indian Land
Consolidation Act. Substantial numbers of 2 percent
or less fractional interests have escheated to tribes
pursuant to section 207 of the Indian Land Consoli-
dation Act. However, the United States Supreme
Court found the application of section 207 to the
facts presented in Babbitt v. Youpee (117 S.Ct.
727) to be unconstitutional. Thus, in the absence of
remedial legislation, the number of fractional inter-
ests will continue to grow.
(7) The problem of fractionation was caused by
Federal policy and required a Federal legislative so-
lution.
SEC. 3. DECLARATION OF POLICY.
It is the policy of this Act to—
(1) prevent the further fractionation of trust
lands;
(2) to consolidate fractionated interests and
ownership of those interests in Indian trust lands
into usable parcels;
(3) to vest beneficial title to such parcels in the
tribes on whose reservations the lands are located;
and
(4) to promote tribal self-sufficiency and self-
determination.
SEC. 4. AMENDMENTS TO THE INDIAN LAND CONSOLIDA-
TION ACT.
The Indian Land Consolidation Act (25 U.S.C. 2201
et seq.) is amended as follows:
(1) Section 202 is amended—
(A) by striking paragraph (2) and insert-
ing the following:
‘‘(2) ‘Indian’ means a person who is a member
of an Indian tribe or a person who is eligible to be-
come a member of an Indian tribe at the time of the
distribution of the assets of a decedent’s estate;’’;
(B) by striking ‘‘and’’ at the end of para-
graph (3);
(C) by striking the period at the end of
paragraph (4) and inserting a semicolon; and
(D) by adding at the end the following:
‘‘(5) ‘heirs of the first or second degree’ means
parents, 
children, 
grandchildren, 
grandparents,
brothers, and sisters of the decedent; and
‘‘(6) ‘Acquisition Fund’ means the fund created
pursuant to section 216.’’.
(2) Section 203 is amended—
(A) by striking ‘‘section 5’’ and inserting
‘‘sections 5 and 7’’; and
(B) by inserting ‘‘or the creation of res-
ervations’’ after ‘‘land’’.
(3) Section 205 is amended—
(A) by striking the colon before ‘‘Provided’’
and inserting ‘‘. Interests owned by a tribe in
a tract may be included in the computation of
the 50 per centum ownership requirement.
Nothing’’;
(B) by striking paragraph (3) and insert-
ing the following:
‘‘(3) if a tribe does not have a land consolida-
tion plan approved pursuant to section 204, all pur-
chases and sales initiated under this section shall be
subject to approval by the Secretary.’’.
(5) Section 206 is amended to read as follows:
‘‘SEC. 206. DESCENT AND DISTRIBUTION OF TRUST OR RE-
STRICTED LANDS; TRIBAL ORDINANCE BAR-
RING NONMEMBERS OF TRIBE FROM INHER-
ITANCE BY DEVISE OR DESCENT.
‘‘(a) TRIBAL PROBATE CODES.—Notwithstanding
any other provision of law, any tribe may adopt its own
code of laws to govern descent and distribution of trust
or restricted lands within that tribe’s reservation or other-
wise subject to that tribe’s jurisdiction. Such codes may
provide that, notwithstanding the provisions of section
207, only members of the tribe shall be entitled to receive
by devise or descent any interest in trust or restricted
lands within that tribe’s reservation or otherwise subject
to that tribe’s jurisdiction.
‘‘(b) SECRETARIAL APPROVAL.—(1) A tribal code en-
acted pursuant to subsection (a), or amendments to such
codes, shall be subject to approval by the Secretary. The
Secretary shall not approve any code that does not prevent
or substantially reduce the further fractionation of trust
or restricted lands. Any code approved pursuant to this
subsection, or an amendment to such a code, shall not be-
come effective until the effective date of section 207. For
codes or amendments to a code enacted after the effective
date of section 207, the code or amendments shall not be
effective until at least six months after approval by the
Secretary of the code or amendments. All codes shall af-
fect only the estates of decedents whose death occurred
on or after the effective date of the code or the related
amendments to the code.
‘‘(2) Repeal of any tribal code approved pursuant to
this subsection shall require the approval of the Secretary
and shall not be effective until at least six months after
such approval. The repeal of a tribal code shall affect only
the estates of decedents whose death occurred on or after
the effective date of the repeal.
‘‘(c) PROBATE
OF ESTATES
IN TRIBAL COURT;
UNITED STATES NOT AN INDISPENSABLE PARTY.—(1) A
tribe with a probate code approved pursuant to subsection
(b) of this section may assume the responsibility for pro-
bating in tribal court the estates of decedents owning
lands or interests in lands on the tribe’s reservation, or
who own lands or interests in lands otherwise subject to
the tribe’s jurisdiction. The United States shall not be an
trary, the devise shall be presumed to create a joint ten-
ancy with right of survivorship;
‘‘(3) If an estate passes by intestate succession, only
spouses and heirs of the first or second degree may inherit
interests in trust or restricted lands in that estate. All in-
terests in trust or restricted land passing by intestate suc-
cession shall create a joint tenancy with right of survivor-
ship in the heirs to the estate.
‘‘(4) If a person who is prohibited by law from receiv-
ing an interest in trust or restricted lands is a surviving
spouse or child of a decedent—
‘‘(A) any devise to such spouse or child shall be
presumed, unless a lesser estate is provided for in
the decedent’s will, to create a life estate, if such is
requested during the probate of the decedent’s estate
by the spouse or child or by the representative or the
spouse or child if the spouse or child is under a legal
disability; and
‘‘(B) in the absence of a will, a life estate shall
be created for a spouse or child or a decedent, if
such is requested during the probate of the dece-
dent’s estate by the spouse or child or by the rep-
resentative or the spouse or child if the spouse or
child is under a legal disability;
‘‘(5) If no individual is eligible to receive an interest
in trust or restricted lands, the interest shall escheat to
the tribe having jurisdiction over the trust or restricted
lands, subject to any life estate that may be created pursu-
ant to this subsection.
‘‘(6) Upon the death of an individual holding an in-
terest in trust or restricted lands which are located outside
the boundaries of a reservation and which are not subject
to the jurisdiction of any tribe, such interest shall de-
scend—
‘‘(A) testate or intestate succession in trust to
the spouse or heirs of the first or second degree of
the decedent; or
‘‘(B) to any other devisees or heirs.
‘‘(7) Upon the death of an individual holding an in-
terest in restricted lands issued pursuant to the Act of
May 17, 1906 (34 Stat. 197) or the Act of May 25, 1926
(44 Stat. 629) that are not subject to the jurisdiction of
any tribe, such interest shall descend—
‘‘(A) in testate or intestate succession in re-
stricted status to the spouse or heirs of the first or
second degree of the descendent; or
‘‘(B) to any other devisees or heirs.
‘‘(b) ESCHEATABLE FRACTIONAL INTERESTS.—Not-
withstanding the provisions of subsection (a), no undivided
interest which represents 2 per centum or less of the total
acreage in a tract of trust or restricted land shall pass
by intestacy but shall escheat to the tribe on whose res-
ervation the interest is located, or if the land is outside
of a reservation, to the recognized tribal government pos-
sessing jurisdiction over such land.
‘‘(c) EFFECTIVE DATE.—The provisions of this sec-
tion shall become effective 2 years after the date of the
enactment of the Indian Land Consolidation Amendment
Act of 1997, and shall apply only to those estates of dece-
dents whose death occurred on or after such date.’’.
(7) Section 208 is amended to read as follows:
‘‘SEC. 208. FULL FAITH AND CREDIT TO TRIBAL ACTIONS
UNDER TRIBAL ORDINANCES LIMITING DE-
SCENT AND DISTRIBUTION OF TRUST OR RE-
STRICTED OR CONTROLLED LANDS.
‘‘In carrying out the responsibility to determine the
heirs of trust and restricted lands of a tribe pursuant to
the first section of the Act of June 25, 1910 (25 U.S.C.
372), the Secretary shall apply the rules of devise and de-
scent contained in the tribal probate code approved pursu-
ant to section 206, and shall give full faith and credit to
any probates conducted by a tribal court pursuant to an
approved tribal probate code.’’.
(8) Section 209 is amended to read as follows:
‘‘SEC. 209. CONVEYANCE AUTHORITY UPON SALE OR EX-
CHANGE OF TRIBAL LANDS; REMOVAL OF
TRUST STATUS OF INDIVIDUALLY OWNED
LANDS.
‘‘The Secretary shall have the authority to issue
deeds, patents, disclaimers, or such other instruments of
conveyance or transfer as may be needed to effectuate or
perfect a sale, partition, exchange, or transfer of tribal
lands and individual trust or restricted lands or interests
therein which are made pursuant to the terms of this Act
or of the first section of the Act of June 25, 1910 (25
U.S.C. 372), the Act of May 18, 1916 (25 U.S.C. 378),
section 7 of the Act of May 27, 1902 (25 U.S.C. 379),
the Act of May 29, 1908 (25 U.S.C. 404), or the Act of
March 1, 1907 (25 U.S.C. 405), including the authority
to eliminate the trust status, or remove restrictions on
alienation, of individually held lands or interests therein
as authorized by this Act or the first section of the Act
of June 25, 1910 (25 U.S.C. 372), the Act of May 18,
1916 (25 U.S.C. 378), section 7 of the Act of May 27,
1902 (25 U.S.C. 379), the Act of May 29, 1908 (25
U.S.C. 404), or the Act of March 1, 1907 (25 U.S.C.
405), and when requested by the individual Indian
owners.’’.
(9) The Indian Land Consolidation Act is
amended by adding after section 212 the following:
‘‘SEC. 213. ACQUISITION OF FRACTIONAL INTERESTS.
‘‘(a) The Secretary is authorized to acquire, with the
consent of its owner and at fair market value, any frac-
tional interest in trust or restricted lands. The Secretary
shall give priority to the acquisition of fractional interests
representing 2 per centum or less of a parcel of trust or
restricted land. The Secretary shall hold in trust for the
tribe that has jurisdiction over the fractional interest the
title of all interests acquired pursuant to this section.
‘‘(b) Any tribe with a land consolidation plan ap-
proved by the Secretary pursuant to section 204 may
apply to the Secretary to enter into an agreement with
the Secretary to implement the program to acquire frac-
tional interests under subsection (a). In addition to the
requirements set forth in sections 204 and 205, tribes ap-
plying for Federal funding of tribal land consolidation
plans shall include in their applications the following:
‘‘(1) A description of the tribe’s dispute resolu-
tion mechanisms and an assurance that individuals
with interests in trust or restricted land will have a
forum to challenge any value determinations made
by the tribe in implementing its land consolidation
plan.
‘‘(2) A financial statement indicating whether
the tribe has any resources to contribute to the fi-
nancing of the fractional interest acquisition pro-
gram and the amount of that contribution.
‘‘(3) A statement that none of the Federal
money received to implement the fractional interest
acquisition program will be used to finance the ac-
quisition of land by individual tribal members.
‘‘(4) A commitment to pay any rents or profits
from, or the proceeds of sales of fractional interests
acquired pursuant to subsection (a), to the Secretary
in accordance with section 214.
‘‘(c) Any agreement negotiated pursuant to this sec-
tion shall not be subject to Public Law 93–638, or any
regulations promulgated thereunder, but shall be subject
solely to the provisions of this Act and the terms and con-
ditions of such agreement. All such agreements shall pro-
vide that if funds made available to a tribe for the acquisi-
tion of fractional interests remain unexpended for 2 years,
the funds shall revert to the Acquisition Fund.
‘‘SEC. 214. ADMINISTRATION OF ACQUIRED FRACTIONAL
INTERESTS; DISPOSITION OF PROCEEDS.
‘‘(a) A tribe receiving a fractional interest pursuant
to sections 207 and 213 may, as a tenant in common with
the other owners of the trust or restricted land, lease the
interest, sell the resources, consent to the granting of
which may govern the amounts offered for the purchase
of interests in trust or restricted lands pursuant to section
213.
‘‘SEC. 216. ACQUISITION FUND.
‘‘The Secretary shall establish an Acquisition Fund
to carry out this Act purposes of section 213 and to collect
all revenues received from the lease, permit, or sale of re-
sources from interests in trust or restricted lands trans-
ferred to tribes by the Secretary pursuant to section 213.
Until the purchase price of an interest acquired pursuant
to section 213 has been recovered, all proceeds from
leases, permits, or resource sales derived from the interest
shall be deposited in the Acquisition Fund and shall, as
specified in advance in appropriations Acts, be available
for the purpose of acquiring additional fractional interests.
‘‘SEC. 217. DETERMINATION OF RESERVATION BOUND-
ARIES AND TRIBAL JURISDICTION.
‘‘Determinations of whether or not a parcel of land
within an Indian reservation is otherwise subject to a
tribe’s jurisdiction shall be made by the Secretary. Review
of these determinations shall be in the United States dis-
trict court where the land is located.
‘‘SEC. 218. REPORTS TO CONGRESS.
‘‘Three years after the date of the enactment of the
Indian Land Consolidation Amendments Act of 1997, and
annually thereafter, the Secretary shall file a report indi-
cating the number of fractional interests acquired and the
impact of the reduction in the number of fractional inter-
ests on the Bureau of Indian Affairs’ financial and realty
recordkeeping systems. The Secretary, after consultation
with the tribes, shall recommend any amendments or addi-
tional legislation necessary to make meaningful reductions
in the number of fractional interests.
‘‘SEC. 219. APPROVAL OF LEASES, RIGHTS-OF-WAY, AND
SALES OF NATURAL RESOURCES.
‘‘The Secretary may approve any lease, right-of-way,
sale of natural resources, or any other transaction affect-
ing individually owned trust or restricted lands that re-
quires approval by the Secretary, if the owners of a major-
ity interest in the trust or restricted lands consent to the
transaction and the Secretary determines that the trans-
action is in the best interest of the Indian owners. Upon
such approval, the transaction shall be binding upon the
owners of the minority interests in the trust or restricted
land and all other parties to the transaction to the same
extent as if all of the Indian owners had consented to the
transaction.
‘‘SEC. 
220. 
REAL 
ESTATE 
TRANSACTIONS 
INVOLVING
NONTRUST LANDS.
‘‘Notwithstanding any other provision of law, any
tribe may, on the same basis as any other person, buy,
sell, mortgage, or otherwise acquire or dispose of lands
or interests in land acquired after the effective date of the
Indian Land Consolidation Amendments Act of 1997, and
which are not held in trust or subject to a preexisting Fed-
eral restriction on alienation imposed by the United
States, without the approval of the Congress or of the Sec-
retary and such disposition shall create no liability on the
part of the United States.’’.
SEC. 4. NOTICE.
Not later than 180 days after the enactment of this
Act, the Secretary shall, to the extent practicable, notify
tribes and individual landowners of the provisions of this
Act. Notice pursuant to this section shall list estate plan-
ning options available to holders of trust or restricted
lands.
Æ