A bill to amend Public Law 98-513 to provide for the inheritance of small fractional interests within the Lake Traverse Indian Reservation.

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Lake Traverse Reservation Heirship 
Act of 2007''.

SEC. 2. AMENDMENTS TO LAKE TRAVERSE HEIRSHIP ACT.

    Public Law 98-513 is amended by striking section 5 (98 Stat. 2413) 
and inserting the following:

``SEC. 5. INHERITANCE OF SMALL FRACTIONAL INTEREST.

    ``(a) Definition of Small Fractional Interest.--In this section, 
the term `small fractional interest' means an undivided trust or 
restricted interest in a parcel of land within the reservation that--
            ``(1) represents less than 5 percent of the entire 
        undivided ownership of the parcel of land (as reflected in the 
        decedent's estate inventory as of the date on which the 
        decisionmaker enters the final decision determining heirs); and
            ``(2) does not exceed the equivalent of 2\1/2\ acres if the 
        interest were to be expressed in terms of its proportionate 
        share of the total acreage of the parcel of land of which the 
        interest is a part.
    ``(b) Intestate Inheritance in General.--Notwithstanding section 3, 
no small fractional interest shall pass by intestate succession under 
this Act or any other provision of law except as provided in subsection 
(c).
    ``(c) Inheritance by Tribe.--If a person dies possessed of a small 
fractional interest that has not been devised in accordance with 
subsection (d) to 1 or more eligible devisees described in that 
subsection, the small fractional interest shall pass to the Tribe, with 
title to the interest to be held by the United States in trust for the 
Tribe.
    ``(d) Inheritance by Testamentary Devise.--
            ``(1) Eligible devisees.--Notwithstanding any other 
        provision of this Act, and subject to paragraph (2), a small 
        fractional interest may be devised only to the following 
        eligible devisees:
                    ``(A) The tribe.
                    ``(B) Any person who is an enrolled member of the 
                Tribe prior to entry of the final probate order.
            ``(2) Requirements.--
                    ``(A) No surviving spouse.--In any case in which a 
                surviving spouse of a decedent does not exist, the 
                small fractional interest of the decedent shall pass 
                only to an heir of the decedent who is an enrolled 
                member of the Tribe before the date on which a final 
                probate order relating to the estate is entered.
                    ``(B) Devises of small fractional interests.--No 
                devise of a small fractional interest shall be valid as 
                to a devisee unless--
                            ``(i) the devisee is eligible to receive 
                        the small fractional interest by devise under 
                        paragraph (1); and
                            ``(ii) the devise is made in a will that 
                        has been approved by the Secretary of the 
                        Interior in accordance with section 2 of the 
                        Act of June 25, 1910 (36 Stat. 856, chapter 
                        431).
                    ``(C) Descent of interest.--A small fractional 
                interest shall pass, in trust or restricted status--
                            ``(i)(I) to the surviving child of the 
                        decedent, if the child is eligible to receive 
                        the interest by devise under paragraph (1); or
                            ``(II) if 2 or more surviving children of 
                        the decedent are eligible to receive the 
                        interest, to the oldest of the children;
                            ``(ii)(I) if the interest does not pass 
                        under clause (i), to the surviving grandchild 
                        of the decedent, if the grandchild is eligible 
                        to receive the interest by devise under 
                        paragraph (1); or
                            ``(II) if 2 or more surviving grandchildren 
                        of the decedent are eligible to receive the 
                        interest, to the oldest of the grandchildren;
                            ``(iii)(I) if the interest does not pass 
                        under clause (i) or (ii), to the surviving 
                        great-grandchild of the decedent, if the great-
                        grandchild is eligible to receive the interest 
                        by devise under paragraph (1); or
                            ``(II) if 2 or more surviving great-
                        grandchildren of the decedent are eligible to 
                        receive the interest, to the oldest of the 
                        great-grandchildren; or
                            ``(iv) if the interest does not pass under 
                        clause (i), (ii), or (iii), to the Tribe.
            ``(3) Holding in trust.--Any small fractional interest 
        devised in accordance with this subsection shall pass to the 
        devisee or devisees on the death of the testator, with title to 
        be held by the United States in trust for the devisee or 
        devisees.''.

SEC. 3. NOTICE TO LANDOWNERS; CERTIFICATION.

    (a) Notice.--Not later than 180 days after the date of enactment of 
this Act, the Secretary of the Interior (referred to in this Act as the 
``Secretary'') shall provide notice of the amendment made by section 2 
to owners of trust and restricted interests in land within the Lake 
Traverse Indian Reservation by--
            (1) posting written notice of the amendment at the 
        administrative headquarters of the Sisseton-Wahpeton Oyate of 
        the Lake Traverse Reservation of North Dakota and South Dakota 
        and at the Agency of the Bureau of Indian Affairs located in 
        Agency Village, South Dakota;
            (2) publishing the notice not fewer than 4 times in 
        newspapers of general circulation in all counties in which any 
        part of the Lake Traverse Reservation is located; and
            (3) sending the notice by first class mail to the last 
        known addresses of Indians with interests in trust or 
        restricted land within the Lake Traverse Reservation.
    (b) Certification.--After providing notice under subsection (a), 
the Secretary shall--
            (1) certify that notice has been given in accordance with 
        that subsection; and
            (2) publish notice of the certification in the Federal 
        Register.

SEC. 4. ESCHEATMENTS.

    (a) Definition of Escheatment.--In this section, the term 
``escheatment'' means an escheatment to the Sisseton-Wahpeton Oyate of 
an interest in land pursuant to section 5 of Public Law 98-513 (98 
Stat. 2411).
    (b) Purposes.--The purposes of this section are--
            (1) to establish a process for providing compensation for 
        escheatments; and
            (2) to ratify the escheatments.
    (c) Ratification of Escheatments.--
            (1) In general.--Subject to the requirements of this 
        section, each escheatment is ratified.
            (2) Holding in trust.--The title to each interest subject 
        to an escheatment shall be held by the United States in trust 
        for the Sisseton-Wahpeton Oyate.
    (d) Actions Barred.--Notwithstanding any other provision of law, 
except as provided in subsection (4)(C)(ii), no court shall have 
jurisdiction over a claim challenging--
            (1) an escheatment; or
            (2) the compensation provided for an escheatment.
    (e) Compensation.--
            (1) In general.--The Secretary shall provide compensation 
        in an amount described in paragraph (2) to any individual that, 
        absent an escheatment, would have inherited land or an interest 
        in land.
            (2) Amount.--
                    (A) In general.--In determining the amount of 
                compensation to be provided under paragraph (1), the 
                Secretary shall take into consideration--
                            (i) any appraisal report prepared with 
                        respect to the probate of the estate of the 
                        decedent that owned the applicable land or 
                        interest in land on the day before the date on 
                        which the land or interest was subject to an 
                        escheatment; or
                            (ii) if an appraisal described in clause 
                        (i) is not available, the appraised value of 
                        the land or interest in land as of the date of 
                        probate of the land or interest.
                    (B) Interest.--The amount of compensation provided 
                under this subsection shall include interest calculated 
                from the date of probate of the applicable land or 
                interest in land in accordance with section 3116 of 
                title 40, United States Code.
            (3) Review of determinations.--
                    (A) Administrative review.--A determination by the 
                Secretary of the amount of compensation provided under 
                this subsection shall be subject to administrative 
                review in accordance with regulations of the Secretary 
                contained in chapters I and II of title 25, Code of 
                Federal Regulations (or successor regulations).
                    (B) Judicial review.--
                            (i) In general.--No court shall have 
                        jurisdiction to review a determination by the 
                        Secretary of the amount of compensation 
                        provided under this subsection until the date 
                        on which a final decision is made with respect 
                        to the administrative review of the 
                        determination.
                            (ii) Deadline.--
                                    (I) In general.--An action seeking 
                                judicial review of a determination by 
                                the Secretary under this subsection 
                                shall be filed by not later than 1 year 
                                after the date described in clause (i).
                                    (II) Failure to meet deadline.--If 
                                the deadline described in subclause (I) 
                                is not met with respect to a 
                                determination of the Secretary, the 
                                determination shall not be subject to 
                                judicial review.
            (4) Exclusive remedy.--Compensation provided under this 
        subsection with respect to an escheatment shall be the 
        exclusive remedy for the escheatment.
    (f) Regulations.--The Secretary shall promulgate such regulations 
as the Secretary determines to be necessary to carry out this section.
    (g) Applicability.--
            (1) In general.--This section shall apply to escheatments 
        only if--
                    (A) the amendment made by section 2 is determined 
                to be invalid for any reason by a court of competent 
                jurisdiction; and
                    (B) all appeals of such a determination are 
                exhausted.
            (2) Effect of subsection.--Nothing in this subsection 
        invalidates the amendment made by section 2.

SEC. 5. EFFECTIVE DATE.

    (a) Effect on Interests.--The amendment made by section 2 shall not 
affect any interest in the estate of a person who dies before the date 
that is 1 year after the date on which the Secretary publishes notice 
of the certification under section 3(b).
    (b) Effect on Wills.--The amendment made by section 2 shall not 
affect the validity or effect of any will executed before the date that 
is 1 year after the date on which the Secretary publishes notice of the 
certification under section 3(b).

Summary: Lake Traverse Reservation Heirship Act of 2007 - Amends federal Indian law to provide for the inheritance of small fractional interests within the Lake Traverse Indian Reservation.