I 113th CONGRESS 1st Session H. R. 409 IN THE HOUSE OF REPRESENTATIVES January 23, 2013 Mr. Simpson introduced the following bill; which was referred to the Committee on Natural Resources A BILL To provide for Indian trust asset management reform, and for other purposes.

1. Short title; table of contents (a) Short title This Act may be cited as the Indian Trust Asset Reform Act . (b) Table of contents The table of contents for this Act is as follows: Sec. 1. Short title; table of contents. TITLE I—RECOGNITION OF TRUST RESPONSIBILITY Sec. 101. Congressional statement of findings. Sec. 102. Congressional reaffirmation of policy. TITLE II—INDIAN TRUST ASSET MANAGEMENT DEMONSTRATION PROJECT ACT Sec. 201. Short title. Sec. 202. Definitions. Sec. 203. Establishment of demonstration project; selection of participating Indian tribes. Sec. 204. Indian trust asset management plan. Sec. 205. Effect of title. TITLE III—RESTRUCTURING BUREAU OF INDIAN AFFAIRS AND OFFICE OF SPECIAL TRUSTEE Sec. 301. Purpose. Sec. 302. Definitions. Sec. 303. Under Secretary for Indian Affairs. Sec. 304. Transfer of functions of Assistant Secretary for Indian Affairs. Sec. 305. Office of Special Trustee for American Indians. Sec. 306. Cost savings recommendations. Sec. 307. Hiring preference. I RECOGNITION OF TRUST RESPONSIBILITY 101. Congressional statement of findings The Congress, after careful review of the Federal Government’s historical and special legal relationship with, and resulting responsibilities to, American Indian people, finds that— (1) the relationship of Indian tribes to the United States is founded in part on the settled doctrine of the law of nations that when a stronger sovereign assumes authority over a weaker sovereign, the stronger one assumes a duty of protection for the weaker one, which does not surrender its right to self-government; (2) the United States fiduciary responsibilities to Indians also constitutes a foundational basis for, not merely a function of, congressional legislation regarding Indians because it constitutes an inherent presupposition of our constitutional structure, which provides an inherent limit on the exercise and application of the Indian Commerce Clause and the Treaty Clause of the Constitution; (3) the United States fiduciary responsibilities to Indians also are founded in part on specific commitments made through written treaties and agreements securing peace, in exchange for which Indians have surrendered claims to vast tracts of land, which provided legal consideration for permanent, ongoing performance of Federal trust duties; and (4) the foregoing historic Federal-tribal relations and understandings have benefitted the people of the United States as a whole for centuries and established enduring and enforceable Federal obligations to which the national honor has been committed. 102. Congressional reaffirmation of policy Pursuant to its constitutionally vested authority over Indian affairs, the Congress hereby reaffirms the following regarding the proper discharge of the United States fiduciary responsibilities to Indians— (1) enforceable fiduciary duties necessarily arise when the United States assumes control or supervision over tribal trust assets even though nothing is said expressly in the governing statutes or regulations, unless Congress has expressly specified otherwise; (2) in general, the most exacting common-law fiduciary standards which govern private trustees also govern the United States when it manages Indian trust assets, and enforceable Federal trust duties for Indian trust asset management are not limited to the express terms of statutes and regulations; (3) the fact that the United States simultaneously performs another task for another interest that Congress has obligated it by statute to do does not compromise or limit the United States enforceable fiduciary obligations to Indians; and (4) the United States fiduciary responsibilities to Indian tribes include and are not limited by a duty to promote tribal self-determination regarding governmental authority and economic development. II INDIAN TRUST ASSET MANAGEMENT DEMONSTRATION PROJECT ACT 201. Short title This title may be cited as the Indian Trust Asset Management Demonstration Project Act of 2013 . 202. Definitions In this title: (1) Project The term Project means the Indian trust asset management demonstration project established under section 103(a). (2) Indian tribe The term Indian tribe means an Indian tribe that— (A) is federally recognized; and (B) submits an application under section 203(c). (3) Secretary The term Secretary means the Secretary of the Interior. 203. Establishment of demonstration project; selection of participating Indian tribes (a) In general The Secretary shall establish and carry out an Indian trust asset management demonstration project, in accordance with this title. (b) Selection of participating Indian tribes (1) Indian tribes (A) In general Any Indian tribe shall be eligible to participate in the Project if— (i) the Indian tribe submits to the Secretary an application under subsection (c); and (ii) the Secretary approves the application of the Indian tribe. (2) Notice (A) In general The Secretary shall provide a written notice to each Indian tribe approved to participate in the Project. (B) Contents A notice under subparagraph (A) shall include— (i) a statement that the application of the Indian tribe has been approved by the Secretary; and (ii) a requirement that the Indian tribe shall submit to the Secretary a proposed Indian trust asset management plan in accordance with section 104. (c) Application (1) In general To be eligible to participate in the Project, an Indian tribe shall submit to the Secretary a written application in accordance with paragraph (2). (2) Requirements The Secretary shall take into consideration an application under this subsection only if the application— (A) includes a copy of a resolution or other appropriate action by the governing body of the Indian tribe, as determined by the Secretary, in support of or authorizing the application; (B) is received by the Secretary after the date of enactment of this Act; and (C) states that the Indian tribe is requesting to participate in the Project. (d) Duration The Project shall remain in effect for a period of 8 years after the date of enactment of this Act. 204. Indian trust asset management plan (a) Proposed plan (1) Submission After the date on which an Indian tribe receives a notice from the Secretary under section 203(b)(2), the Indian tribe shall submit to the Secretary a proposed Indian trust asset management plan in accordance with paragraph (2). (2) Contents A proposed Indian trust asset management plan shall include provisions that— (A) identify the trust assets that will be subject to the plan, including financial and nonfinancial trust assets; (B) establish trust asset management objectives and priorities for Indian trust assets that are located within the reservation, or otherwise subject to the jurisdiction, of the Indian tribe; (C) allocate trust asset management funding that is available for the Indian trust assets subject to the plan in order to meet the trust asset management objectives and priorities; (D) if the Indian tribe has contracted or compacted functions or activities under the Indian Self-Determination and Education Assistance Act ( 25 U.S.C. 450 et seq. ) relating to the management of trust assets— (i) identify the functions or activities that are being performed by the Indian tribe under the contracts or compacts; and (ii) describe the proposed management systems, practices, and procedures that the Indian tribe will follow; (E) establish procedures for nonbinding mediation or resolution of any dispute between the Indian tribe and the United States relating to the trust asset management plan; (F) include a process for the Indian tribe and the Federal agencies affected by the trust asset management plan to conduct annual evaluations to ensure that trust assets are being managed in accordance with the plan; and (G) identify any Federal regulations that will be superseded by the plan. (3) Authority of Indian tribes to develop systems, practices, and procedures For purposes of preparing and carrying out a management plan under this section, an Indian tribe that has compacted or contracted activities or functions under the Indian Self-Determination and Education Assistance Act ( 25 U.S.C. 450 et seq. ), for purposes of carrying out the activities or functions, may develop and carry out trust asset management systems, practices, and procedures that differ from any such systems, practices, and procedures used by the Secretary in managing the trust assets if the systems, practices, and procedures of the Indian tribe meet the requirements of the laws, standards, and responsibilities described in subsection (c). (4) Technical assistance and information The Secretary shall provide to an Indian tribe any technical assistance and information, including budgetary information, that the Indian tribe determines to be necessary for preparation of a proposed plan on receipt of a written request from the Indian tribe. (b) Approval and disapproval of proposed plans (1) Approval (A) In general Not later than 120 days after the date on which an Indian tribe submits a proposed Indian trust asset management plan under subsection (a), the Secretary shall approve or disapprove the proposed plan. (B) Requirements for disapproval The Secretary shall approve a proposed plan unless the Secretary determines that— (i) the proposed plan fails to address a requirement under subsection (a)(2); (ii) the proposed plan includes one or more provisions that are inconsistent with subsection (c); or (iii) the cost of implementing the proposed plan exceeds the amount of funding available for the management of trust assets that would be subject to the proposed plan. (2) Action on disapproval (A) Notice If the Secretary disapproves a proposed plan under paragraph (1)(B), the Secretary shall provide to the Indian tribe a written notice of the disapproval, including any reason why the proposed plan was disapproved. (B) Action by tribes If a proposed plan is disapproved under paragraph (1)(B), the Indian tribe may resubmit an amended proposed plan not later than 90 days after the date on which the Indian tribe receives the notice under subparagraph (A). (3) Failure to approve or disapprove If the Secretary fails to approve or disapprove a proposed plan in accordance with paragraph (1), the plan shall be considered to be approved. (4) Judicial review An Indian tribe may seek judicial review of the determination of the Secretary in accordance with subchapter II of chapter 5, and chapter 7, of title 5, United States Code (commonly known as the Administrative Procedure Act ) if— (A) the Secretary disapproves the proposed plan of the Indian tribe under paragraph (1) or (3); and (B) the Indian tribe has exhausted any other administrative remedy available to the Indian tribe. (c) Applicable laws; standards; trust responsibility (1) Applicable laws An Indian trust asset management plan, and any activity carried out under the plan, shall not be approved unless the proposed plan is consistent with— (A) all Federal treaties, statutes, Executive orders, and court decisions that are applicable to the trust assets, or the management of the trust assets, identified in the plan; and (B) all tribal laws that are applicable to the trust assets, or the management of trust assets, identified in the plan, except to the extent that the laws are inconsistent with the treaties, statutes, Executive orders, and court decisions referred to in subparagraph (A). (2) Standards Subject to the laws referred to in paragraph (1)(A), an Indian trust asset management plan shall not be approved unless the Secretary determines that the plan will— (A) protect trust assets from loss, waste, and unlawful alienation; (B) promote the interests of the beneficial owner of the trust asset; (C) conform, to the maximum extent practicable, to the preferred use of the trust asset by the beneficial owner, unless the use is inconsistent with a treaty, statute, regulation, Executive order, or court decision referred to in paragraph (1)(A); (D) protect any applicable treaty-based fishing, hunting and gathering, and similar rights relating to the use, access, or enjoyment of a trust asset; and (E) require that any activity carried out under the plan be carried out in good faith and with loyalty to the beneficial owner of the trust asset. (3) Trust responsibility An Indian trust asset management plan shall not be approved unless the Secretary determines that the plan is consistent with the trust responsibility of the United States to the Indian tribe and individual Indians. (d) Termination of plan (1) In general An Indian tribe may terminate an Indian trust asset management plan on any date after the date on which a proposed Indian trust asset management plan is approved by providing to the Secretary— (A) a notice of the intent of the Indian tribe to terminate the plan; and (B) a resolution of the governing body of the Indian tribe authorizing the termination of the plan. (2) Effective date A termination of an Indian trust asset management plan under paragraph (1) takes effect on October 1 of the first fiscal year following the date on which a notice is provided to the Secretary under paragraph (1)(A). 205. Effect of title (a) Liability Nothing in this title, or a trust asset management plan approved under section 204, shall independently diminish, increase, create, or otherwise affect the liability of the United States or an Indian tribe participating in the Project for any loss resulting from the management of an Indian trust asset under an Indian trust asset management plan. (b) Effect on other laws Except for any regulation superseded by a trust asset management plan approved under section 204, nothing in this title amends or otherwise affects the application of any treaty, statute, regulation, Executive order, or court decision that is applicable to Indian trust assets or the management or administration of Indian trust assets. (c) Trust responsibility Nothing in this title diminishes or otherwise affects the trust responsibility of the United States to Indian tribes and individual Indians. III RESTRUCTURING BUREAU OF INDIAN AFFAIRS AND OFFICE OF SPECIAL TRUSTEE 301. Purpose The purpose of this title is to ensure a more effective and accountable administration of duties of the Secretary of the Interior with respect to providing services and programs to Indians and Indian tribes, including the management of Indian trust resources. 302. Definitions In this title: (1) Bureau The term Bureau means the Bureau of Indian Affairs. (2) Office The term Office means the Office of Trust Reform Implementation and Oversight referred to in section 303(c). (3) Secretary The term Secretary means the Secretary of the Interior. (4) Under secretary The term Under Secretary means the individual appointed to the position of Under Secretary for Indian Affairs, established by section 303(a). 303. Under Secretary for Indian Affairs (a) Establishment of position There is established in the Department of the Interior the position of Under Secretary for Indian Affairs, who shall report directly to the Secretary. (b) Appointment (1) In general Except as provided in paragraph (2), the Under Secretary shall be appointed by the President, by and with the advice and consent of the Senate. (2) Exception The officer serving as the Assistant Secretary for Indian Affairs on the date of enactment of this Act may assume the position of Under Secretary without appointment under paragraph (1) if— (A) the officer was appointed as Assistant Secretary for Indian Affairs by the President by and with the advice and consent of the Senate; and (B) not later than 180 days after the date of enactment of this Act, the Secretary approves the assumption. (c) Duties In addition to the duties transferred to the Under Secretary under sections 304 and 305, the Under Secretary, acting through an Office of Trust Reform Implementation and Oversight, shall— (1) carry out any activity relating to trust fund accounts and trust resource management of the Bureau (except any activity carried out under the Office of the Special Trustee for American Indians before the date on which the Office of the Special Trustee is abolished), in accordance with the American Indian Trust Fund Management Reform Act of 1994 ( 25 U.S.C. 4001 et seq. ); (2) develop and maintain an inventory of Indian trust assets and resources; (3) coordinate with the Special Trustee for American Indians to ensure an orderly transition of the functions of the Special Trustee under section 305; (4) supervise any activity carried out by the Department of the Interior, including but not limited to— (A) to the extent that the activities relate to Indian affairs, activities carried out by— (i) the Commissioner of Reclamation; (ii) the Director of the Bureau of Land Management; (iii) the Director of the Office of Natural Resources Revenue; (iv) the Director of the National Park Service; and (v) the Director of the U.S. Fish and Wildlife Service; and (B) intergovernmental relations between the Bureau and Indian tribal governments; (5) to the maximum extent practicable, coordinate activities and policies of the Bureau with activities and policies of— (A) the Bureau of Reclamation; (B) the Bureau of Land Management; (C) the Office of Natural Resources Revenue; (D) the National Park Service; and (E) the U.S. Fish and Wildlife Service; (6) provide for regular consultation with Indians and Indian tribes that own interests in trust resources and trust fund accounts; (7) manage and administer Indian trust resources in accordance with any applicable Federal law; (8) take steps to protect the security of data relating to individual Indian and Indian tribal trust accounts; and (9) take any other measure the Under Secretary determines to be necessary with respect to Indian affairs. 304. Transfer of functions of Assistant Secretary for Indian Affairs (a) Transfer of functions There is transferred to the Under Secretary any function of the Assistant Secretary for Indian Affairs that has not been carried out by the Assistant Secretary as of the date of enactment of this Act. (b) Determinations of certain functions by the office of management and budget If necessary, the Office of Management and Budget shall make any determination relating to the functions transferred under subsection (a). (c) Personnel provisions (1) Appointments The Under Secretary may appoint and fix the compensation of such officers and employees as the Under Secretary determines to be necessary to carry out any function transferred under this section. (2) Requirements Except as otherwise provided by law— (A) an officer or employee described in paragraph (1) shall be appointed in accordance with the civil service laws; and (B) the compensation of the officer or employee shall be fixed in accordance with title 5, United States Code. (d) Delegation and assignment (1) In general Except as otherwise expressly prohibited by law or otherwise provided by this section, the Under Secretary may— (A) delegate any of the functions transferred to the Under Secretary by this section and any function transferred or granted to the Under Secretary after the date of enactment of this Act to such officers and employees of the Office as the Under Secretary may designate; and (B) authorize successive redelegations of such functions as the Under Secretary determines to be necessary or appropriate. (2) Delegation No delegation of functions by the Under Secretary under this section shall relieve the Under Secretary of responsibility for the administration of the functions. (e) Reorganization The Under Secretary may allocate or reallocate any function transferred under this section among the officers of the Office, and establish, consolidate, alter, or discontinue such organizational entities in the Office, as the Under Secretary determines to be necessary or appropriate. (f) Rules The Under Secretary may prescribe, in accordance with the provisions of chapters 5 and 6 of title 5, United States Code, such rules and regulations as the Under Secretary determines to be necessary or appropriate to administer and manage the functions of the Office. (g) Transfer and allocations of appropriations and personnel (1) In general Except as otherwise provided in this section, the personnel employed in connection with, and the assets, liabilities, contracts, property, records, and unexpended balances of appropriations, authorizations, allocations, and other funds employed, used, held, arising from, available to, or to be made available in connection with, the functions transferred by this section, subject to section 1531 of title 31, United States Code, shall be transferred to the Office. (2) Unexpended funds Unexpended funds transferred pursuant to this subsection shall be used only for the purposes for which the funds were originally authorized and appropriated. (h) Incidental transfers (1) In general The Director of the Office of Management and Budget, at any time the Director may provide, may make such determinations as are necessary with regard to the functions transferred by this section, and make such additional incidental dispositions of personnel, assets, liabilities, grants, contracts, property, records, and unexpended balances of appropriations, authorizations, allocations, and other funds held, used, arising from, available to, or to be made available in connection with such functions, as are necessary, to carry out this section. (2) Termination of affairs The Director of the Office of Management and Budget shall provide for the termination of the affairs of all entities terminated by this section and for any further measures and dispositions as are necessary to effectuate the purposes of this section. (i) Effect on personnel (1) In general Except as otherwise provided by this section, the transfer pursuant to this section of full-time personnel (except special Government employees) and part-time personnel holding permanent positions shall not cause any such employee to be separated or reduced in grade or compensation for a period of at least 1 year after the date of transfer of the employee under this section. (2) Executive schedule positions Except as otherwise provided in this section, any person who, on the day preceding the date of enactment of this Act, held a position compensated in accordance with the Executive Schedule prescribed in chapter 53 of title 5, United States Code, and who, without a break in service, is appointed to a position in the Office having duties comparable to the duties performed immediately preceding such appointment shall continue to be compensated in the new position at not less than the rate provided for the previous position, for the duration of the service of the person in the new position. (3) Termination of certain positions Positions whose incumbents are appointed by the President, by and with the advice and consent of the Senate, the functions of which are transferred by this title, shall terminate on the date of enactment of this Act. (j) Separability If a provision of this section or the application of this section to any person or circumstance is held invalid, neither the remainder of this section nor the application of the provision to other persons or circumstances shall be affected. (k) Transition The Under Secretary may use— (1) the services of the officers, employees, and other personnel of the Assistant Secretary for Indian Affairs relating to functions transferred to the Office by this section; and (2) funds appropriated to the functions for such period of time as may reasonably be needed to facilitate the orderly implementation of this section. (l) References Any reference in a Federal law, Executive order, rule, regulation, delegation of authority, or document relating to the Assistant Secretary for Indian Affairs, with respect to functions transferred under this section, shall be deemed to be a reference to the Under Secretary. (m) Recommended legislation Not later than 180 days after the effective date of this title, the Under Secretary, in consultation with the appropriate committees of Congress and the Director of the Office of Management and Budget, shall submit to Congress any recommendations relating to additional technical and conforming amendments to Federal law to reflect the changes made by this section. (n) Effect of section (1) Continuing effect of legal documents Any legal document relating to a function transferred by this section that is in effect on the date of enactment of this Act shall continue in effect in accordance with the terms of the document until the document is modified or terminated by— (A) the President; (B) the Under Secretary; (C) a court of competent jurisdiction; or (D) operation of Federal or State law. (2) Proceedings not affected This section shall not affect any proceeding (including a notice of proposed rulemaking, an administrative proceeding, and an application for a license, permit, certificate, or financial assistance) relating to a function transferred under this section that is pending before the Assistant Secretary on the date of enactment of this Act. 305. Office of Special Trustee for American Indians (a) Termination Notwithstanding sections 302 and 303 of the American Indian Trust Fund Management Reform Act of 1994 ( 25 U.S.C. 4042 ; 4043), the Office of Special Trustee for American Indians shall terminate on the effective date of this section. (b) Transfer of functions There is transferred to the Under Secretary any function of the Special Trustee for American Indians that has not been carried out by the Special Trustee as of the effective date of this section. (c) Determinations of certain functions by the office of management and budget If necessary, the Office of Management and Budget shall make any determination relating to the functions transferred under subsection (b). (d) Personnel provisions (1) Appointments The Under Secretary may appoint and fix the compensation of such officers and employees as the Under Secretary determines to be necessary to carry out any function transferred under this section. (2) Requirements Except as otherwise provided by law— (A) any officer or employee described in paragraph (1) shall be appointed in accordance with the civil service laws; and (B) the compensation of such an officer or employee shall be fixed in accordance with title 5, United States Code. (e) Delegation and assignment (1) In general Except as otherwise expressly prohibited by law or otherwise provided by this section, the Under Secretary may— (A) delegate any of the functions transferred to the Under Secretary under this section and any function transferred or granted to the Under Secretary after the effective date of this section to such officers and employees of the Office as the Under Secretary may designate; and (B) authorize successive redelegations of the functions as are necessary or appropriate. (2) Delegation No delegation of functions by the Under Secretary under this section shall relieve the Under Secretary of responsibility for the administration of the functions. (f) Reorganization The Under Secretary may allocate or reallocate any function transferred under subsection (b) among the officers of the Office, and establish, consolidate, alter, or discontinue such organizational entities in the Office as the Under Secretary determines to be necessary or appropriate. (g) Rules The Under Secretary may prescribe, in accordance with the provisions of chapters 5 and 6 of title 5, United States Code, such rules and regulations as the Under Secretary determines to be necessary or appropriate to administer and manage the functions of the Office. (h) Transfer and Allocations of Appropriations and Personnel Except as otherwise provided in this section, the personnel employed in connection with, and the assets, liabilities, contracts, property, records, and unexpended balances of appropriations, authorizations, allocations, and other funds employed, used, held, arising from, available to, or to be made available in connection with the functions transferred by this section, subject to section 1531 of title 31, United States Code, shall be transferred to the Office. (i) Incidental transfers (1) In general The Director of the Office of Management and Budget, at any time the Director may provide, may make such determinations as are necessary with regard to the functions transferred by this section, and make such additional incidental dispositions of personnel, assets, liabilities, grants, contracts, property, records, and unexpended balances of appropriations, authorizations, allocations, and other funds held, used, arising from, available to, or to be made available in connection with such functions, as are necessary, to carry out this section. (2) Termination of affairs The Director of the Office of Management and Budget shall provide for the termination of the affairs of all entities terminated by this section and for any further measures and dispositions as are necessary to effectuate the purposes of this section. (j) Effect on personnel (1) In general Except as otherwise provided by this section, the transfer pursuant to this section of full-time personnel (except special Government employees) and part-time personnel holding permanent positions shall not cause any such employee to be separated or reduced in grade or compensation for a period of at least 1 year after the date of transfer of the employee under this section. (2) Executive schedule positions Except as otherwise provided in this section, any person who, on the day preceding the effective date of this section, held a position compensated in accordance with the Executive Schedule prescribed in chapter 53 of title 5, United States Code, and who, without a break in service, is appointed to a position in the Office having duties comparable to the duties performed immediately preceding such appointment, shall continue to be compensated in the new position at not less than the rate provided for the previous position, for the duration of the service of the person in the new position. (3) Termination of certain positions Positions the incumbents of which are appointed by the President, by and with the advice and consent of the Senate, and the functions of which are transferred by this title, shall terminate on the effective date of this section. (k) Separability If a provision of this section or the application of this section to any person or circumstance is held invalid, neither the remainder of this section nor the application of the provision to other persons or circumstances shall be affected. (l) Transition The Under Secretary may use— (1) the services of the officers, employees, and other personnel of the Special Trustee relating to functions transferred to the Office by this section; and (2) funds appropriated to those functions for such period of time as may reasonably be needed to facilitate the orderly implementation of this section. (m) References Any reference in a Federal law, Executive order, rule, regulation, delegation of authority, or document relating to the Special Trustee, with respect to functions transferred under this section, shall be deemed to be a reference to the Under Secretary. (n) Recommended legislation Not later than 180 days after the effective date of this title, the Under Secretary, in consultation with the appropriate committees of Congress and the Director of the Office of Management and Budget, shall submit to Congress any recommendations relating to additional technical and conforming amendments to Federal law to reflect the changes made by this section. (o) Effect of section (1) Continuing effect of legal documents Any legal document relating to a function transferred by this section that is in effect on the effective date of this section shall continue in effect in accordance with the terms of the document until the document is modified or terminated by— (A) the President; (B) the Under Secretary; (C) a court of competent jurisdiction; or (D) operation of Federal or State law. (2) Proceedings not affected This section shall not affect any proceeding (including a notice of proposed rulemaking, an administrative proceeding, and an application for a license, permit, certificate, or financial assistance) relating to a function transferred under this section that is pending before the Special Trustee on the effective date of this section. (p) Effective date This section shall take effect on April 1, 2014, or 180 days following enactment of this Act into law, whichever is earlier. 306. Cost savings recommendations (a) Cost savings identification Within 60 days of the effective date in section 305(p), the Under Secretary shall initiate procedures to— (1) identify the programs, functions, services, and activities (or any portions of programs, functions, services, or activities) that will not have to operate or carry out as a result of any transfer of functions and personnel under section 305; (2) identify the amounts that the Secretary would have otherwise expended to operate or carry out each program, function, service, and activity (or any portion of a program, function, service, or activity) identified pursuant to paragraph (1); and (3) provide to the Secretary and the tribal representatives of the Tribal/Interior Budget Council, within 120 days of the effective date in section 305(p), a list of the programs, functions, services, and activities (or any portions of programs, functions, services, or activities) identified pursuant paragraph (1) and the amounts associated with each program, function, service, and activity (or any portion of a program, function, service, or activity) identified pursuant to paragraph (2). (b) Tribal recommendations Within 120 days of receipt of the information in subsection (a)(3), the tribal representatives of the Tribal/Interior Budget Council may provide recommendations to the Secretary and the Office of Management and Budget on how any amounts or cost savings should be reallocated and/or incorporated into future budget requests. 307. Hiring preference In appointing or otherwise hiring any employee to the Office, the Under Secretary shall give preference to Indians in accordance with section 12 of the Act of June 8, 1934 ( 25 U.S.C. 472 ).