A bill to amend the Indian Land Consolidation Act to modify certain requirements under that Act.

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Indian Land Consolidation Act 
Amendments of 2006''.

SEC. 2. DEFINITIONS.

    Section 202 of the Indian Land Consolidation Act (25 U.S.C. 2201) 
is amended--
            (1) in paragraph (4)--
                    (A) by inserting ``(i)'' after ``(4)'';
                    (B) by striking ```trust or restricted interest in 
                land' or'' and inserting the following:
            ``(ii) `trust or restricted interest in land' or''; and
                    (C) in clause (ii) (as designated by subparagraph 
                (B)), by striking ``an interest in land, title to 
                which'' and inserting ``an interest in land, the title 
                to which interest''; and
            (2) by striking paragraph (7) and inserting the following:
            ``(7) the term `land'--
                    ``(A) means any real property; and
                    ``(B) includes, for purposes of intestate 
                succession only under section 207(a) and only with 
                respect to any decedent who dies after July 20, 2007, 
                the interest of the decedent in any improvements 
                permanently affixed to a parcel of trust or restricted 
                lands (subject to any valid mortgage or other interest 
                in such an improvement) that was owned in whole or in 
                part by the decedent immediately prior to the death of 
                the decedent;''.

SEC. 3. DESCENT AND DISTRIBUTION.

    Section 207 of the Indian Land Consolidation Act (25 U.S.C. 2206) 
is amended--
            (1) in subsection (a)(2)(D)--
                    (A) in clause (i), by striking ``clauses (ii) 
                through (iv)'' and inserting ``clauses (ii) through 
                (v)''; and
                    (B) by striking clause (v) and inserting the 
                following:
                            ``(v) Effect of subparagraph.--Nothing in 
                        this subparagraph limits the right of any 
                        person to devise any trust or restricted 
                        interest pursuant to a valid will in accordance 
                        with subsection (b).'';
            (2) in subsection (c)(2), by striking ``the date that is'' 
        and all that follows through the period at the end and 
        inserting the following: ``July 21, 2007.''; and
            (3) in subsection (o)--
                    (A) in paragraph (3)--
                            (i) by redesignating subparagraphs (A) and 
                        (B) as clauses (i) and (ii) and indenting the 
                        clauses appropriately; and
                            (ii) by striking ``(3)'' and all that 
                        follows through ``No sale'' and inserting the 
                        following:
            ``(3) Request to purchase; consent requirements; multiple 
        requests to purchase.--
                    ``(A) In general.--No sale''; and
                            (iii) by striking the last sentence and 
                        inserting the following:
                    ``(B) Multiple requests to purchase.--Except for 
                interests purchased pursuant to paragraph (5), if the 
                Secretary receives a request with respect to an 
                interest from more than 1 eligible purchaser under 
                paragraph (2), the Secretary shall sell the interest to 
                the eligible purchaser that is selected by the 
                applicable heir, devisee, or surviving spouse.'';
                    (B) in paragraph (4)--
                            (i) in subparagraph (A), by adding ``and'' 
                        at the end;
                            (ii) in subparagraph (B), by striking ``; 
                        and'' and inserting a period; and
                            (iii) by striking subparagraph (C); and
                    (C) in paragraph (5)--
                            (i) in subparagraph (A)--
                                    (I) in the matter preceding clause 
                                (i), by striking ``auction and'';
                                    (II) in clause (i), by striking 
                                ``and'' at the end;
                                    (III) in clause (ii)--
                                            (aa) by striking 
                                        ``auction'' and inserting 
                                        ``sale'';
                                            (bb) by striking ``the 
                                        interest passing to such heir 
                                        represents'' and inserting ``, 
                                        at the time of death of the 
                                        applicable decedent, the 
                                        interest of the decedent in the 
                                        land represented''; and
                                            (cc) by striking the period 
                                        at the end and inserting ``; 
                                        and''; and
                                    (IV) by adding at the end the 
                                following:
                            ``(iii)(I) the Secretary is purchasing the 
                        interest as part of the program authorized 
                        under section 213(a)(1); or
                            ``(II) after receiving a notice under 
                        paragraph (4)(B), the Indian tribe with 
                        jurisdiction over the interest is proposing to 
                        purchase the interest from an heir who is not a 
                        member, and is not eligible to become a member, 
                        of that Indian tribe.'';
                            (ii) in subparagraph (B)--
                                    (I) by striking ``(B)'' and all 
                                that follows through ``such heir'' and 
                                inserting the following:
                    ``(B) Exception; nonapplicability to certain 
                interests.--
                            ``(i) Exception.--Notwithstanding 
                        subparagraph (A), the consent of the heir or 
                        surviving spouse'';
                                    (II) in clause (i), by inserting 
                                ``or surviving spouse'' before ``was 
                                residing''; and
                                    (III) by adding at the end the 
                                following:
                            ``(ii) Nonapplicability to certain 
                        interests.--Subparagraph (A) shall not apply to 
                        any interest in the estate of a decedent who 
                        dies on or before July 20, 2007 (or the last 
                        day of any applicable period of extension 
                        authorized by the Secretary under subparagraph 
                        (C)).''; and
                            (iii) by adding at the end the following:
                    ``(C) Authority to extend period of 
                nonapplicability.--The Secretary may extend the period 
                of nonapplicability under subparagraph (B)(ii) for not 
                longer than 1 year if, by not later than July 2, 2007, 
                the Secretary publishes in the Federal Register a 
                notice of the extension.''.

            Passed the Senate September 30 (legislative day, September 
      29), 2006.

            Attest:

                                             EMILY J. REYNOLDS,

                                                             Secretary.

Summary: Indian Land Consolidation Act Amendments of 2006 - Amends the Indian Land Consolidation Act (ILCA) to revise the meaning of land and improvements to specify that the term "permament improvement" to land subject to probate means only a decedent's interest in any improvement permanently affixed to a parcel of trust or restricted lands that was owned in whole or in part by the decedent immediately before his or her death.





Revises requirements for the purchase option at probate. Requires the Secretary, in the case of multiple requests to purchase an interest in a decedent's land, to sell the interest to the eligible purchaser selected by the applicable heir, devisee, or surviving spouse. Repeals the requirement for sale of such an interest by public auction or sealed bid.

Applies only to wills executed after July 20, 2007, the presumption of joint tenancy in the devise of trust or restricted interests in the same parcel of land to more than one person.

Provides that the threshold for an involuntary purchase at probate (5% of the entire undivided ownership of a parcel of land) refers to the interest of the decedent in the parcel at the time of death, rather than the interest passing to the heir. States that the only eligible purchasers of an interest in an involuntary sale at probate are: (1) the Secretary under the fractional interest acquisition program; or (2) the Indian tribe, where the interest would otherwise be inherited by a nonmember. Applies these new requirements only to interests in the estates of decedents who die after July 20, 2007. Authorizes the Secretary to postpone such application date for an additional year.