An act to repeal and amend certain laws regulating trade between Indians and certain Federal employees.
PL 96-277 (H.R.3979), enacted 06/17/1980

94 STAT. 544 
PUBLIC LAW 96-277—JUNE 17, 1980 
Public Law 96-277 
96th Congress 
An Act 
June 17, 1980 
[H.R. 3979] 
To repeal and amend certain laws regulating trade between Indians and certain 
Federal employees. 
Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled. That section 437 of 
title 18, United States Code, is amended to read as follows: 
1
8 use 437. 
"§437. Federal employees contracting or trading with Indians 
Fines and 
"(a) Except as provided in subsection (b), whoever, being an officer, 
imprisonment. 
employee, or agent of the Bureau of Indian Affairs or the Indian 
Health Service has (other than as a lawful representative of the 
United States) any interest, in such officer, employee, or agent's 
name, or in the name of another person where such officer, employee, 
or agent benefits or appears to benefit from such interest— 
"(1) in any contract made or under negotiation with any 
Indian, for the purchase or transportation or delivery of 
goods or 
supplies for any Indian, or 
"(2) in any purchase or sale of any service or real or personal 
property (or any interest therein) from or to any Indian, or 
colludes with any person attempting to obtain any such contract, 
purchase, or sale, shall be fined not more than $5,000 or imprisoned 
not more than six months or both, and shall be removed from office, 
notwithstanding any other provision of law concerning termination 
from Federal employment. 
"(bXD Notwithstanding the provisions of subsection (a) and in 
accordance with para^aph (2) of this subsection, the President or his 
designee may prescribe rules and regulations under which any 
officer, employee, or agent of the Bureau of Indian Affairs or of the 
Indian Health Service may purchase from or sell to any Indian any 
service or any real or personal property or any interest therein. 
"(2) No rule or regulation prescribed pursuant to paragraph (1) of 
this subsection shall permit any officer, employee, or agent referred 
to in that paragraph— 
"(A) to make any purchase from or sale to an Indian of 
any real 
or personal property (or any interest therein) for the purpose of 
commercially selling, reselling, trading, or bartering such prop-
erty; or 
"(B) to have any interest in any purchase or sale involving 
property or funds which are either held in trust by the United 
States for Indians or which are purchased, sold, utilized, or 
received in connection with a contract or grant to an Indian from 
the Bureau of 
Indian Affairs or the Indian Health Service, if such 
officer, employee, or agent is emploj^ed in the office or installa-
tion of suwi Bureau or Service which recommends, approves, 
executes, or administers such transaction, grant, or contract on 
behalf of the United States: Provided, That such officer, 
employee, or agent may have such an interest if such purchase 
or sale is approved by the Secretary of 
the Interior in the case of 
a 
Rules permitting 
sale of property. 
PUBLIC LAW 96-277—JUNE 17, 1980 
94 STAT. 545 
Bureau of Indian Affairs officer, employee, or agent, or by the 
Secretary of Health, Education, and Welfare in the case of an 
Indian Health Service officer, employee, or agent, or a designee 
of such Secretary who is not employed at such office or installa-
tion: Provided further. That (1) any such designee may not be a 
relative by blood or marriage of the officer, employee, or agent 
engaging in such purchase or sale; (2) with respect to purchases 
or sales by any officer, employee, or agent employed at the 
reservation, agency, or service unit level, such designee must be 
employed at not less than one grade level higher than such 
officer, employee, or agent at the Washington, District of Colum-
bia, central office or at an area office installation other than that 
with authority over such reservation, agency, or service unit; (3) 
with respect to purchases or sales by any officer, employee, or 
agent employed at the area office level, such designee must be 
employed at not less than one grade level higher than such 
officer, employee, or agent at the Washington, District of Colum-
bia, central office; and (4) the Secretary must approve purchases 
or sales by any officer, employee, or agent employed at the 
Washington, District of Columbia, central office; or 
"(C) to acquire any interest in property held in trust, or subject 
to restriction against alienation imposed, by the United States 
unless the conveyance or granting of such interest in such 
property is otherwise authorized by law. 
"(c) Except as provided in subsection (b)(2), nothing contained in 
this section shall be construed as preventing any officer, employee, or 
agent of the Bureau of Indian Affairs or the Indian Health Service 
who is an Indian, of whatever degree of Indian blood, from obtaining 
or receiving any benefit or benefits made available to Indians 
generally or to any member of his or her particular tribe, under any 
Act of Congress, nor to prevent any such officer, employee, or agent 
who is an Indian from being a member of or receiving benefits by 
reason of his or her membership in any Indian tribe, corporation, or 
cooperative association organized by Indians, when authorized under 
such rules and regulations as the Secretary of the Interior or the 
Secretary of Health, Education, and Welfare, or their designee shall 
prescribe. 
"(d) For purposes of this section, the term 'Indian' means any 
member of an Indian tribe recognized as eligible for the services 
provided by the Bureau of Indian Affairs who is residing on a Federal 
Indian Reservation, on land held in trust by the United States for 
Indians, or on land subject to a restriction against alienation imposed 
by the United States. The term shall also include any such tribe and 
any Indian owned or controlled organization located on such a 
reservation or land. 
"(e) For purposes of this section, the term 'Bureau of Indian Affairs' 
means the Bureau of Indian Affairs and the Office of the Assistant 
Secretary for Indian Affairs, both in the Department of the Interior.". 
SEC. 2. Section 2078 of the Revised Statutes (25 U.S.C. 68) and the 
Act of June 19,1939 (53 Stat. 840; 25 U.S.C. 68a and 441), are hereby 
repealed. 
SEC. 3. The Secretary of the Interior may review any transaction, 
other than one involving the sale of property held in trust or subject 
to a restriction against alienation imposed by the United States, 
occurring prior to the effective date of this Act and, if the Secretary 
finds that such transaction would have been valid had the provisions 
of this Act been in effect at the time of such transaction, the 
Indian benefit 
entitlement. 
"Indian." 
"Bureau of 
Indian Affairs." 
Repeals. 
25 u s e 87a. 
Validity of 
transaction, 
declaration by 
Secretary of 
Interior. 
18 u s e 437 note. 
94 STAT. 546 
PUBLIC LAW 96-277—JUNE 17, 1980 
Ante, p. 544, 25 
use 68. 
Effective date. 
18 u s e 437 note. 
Wa-He-Lute 
Indian School, 
tract of land. 
Title to land. 
Secretary may declare such transaction to be valid, subject to all 
valid transactions subsequent to such time. The Secretary may issue 
or execute such documents as may be necessary or desirable to 
evidence the validity of such a transaction. A declaration of validity 
of a transaction pursuant to this section shall be conclusive evidence 
of such validity notwithstanding the provisions of section 437 of title 
18, United States Code; section 2078 of the Revised Statutes; section 
14 of the Act of June 30,1834 (4 Stat. 738); and section 10 of the Act of 
June 22,1874 (18 Stat. 177), which may have been in effect at the time 
of such transaction. 
SEC. 4. The provisions of this Act shall take effect sixty days after 
the date of enactment of this Act. 
SEC. 5. (a) On and after the effective date of this Act, the following 
tract of land shall be held by the Secretary of the Interior for the Wa-
He-Lute Indian School for its use as an Indian school and community 
center for educational or cultural purposes: 
Part of Government lot 2, section 8, township 18 north, range 1 
east, Willamette meridian, Thurston County, Washington, 
described more particularly as follows: Government lot 2, section 
8, township 18 north, range 1 east, Willamette meridian, Thur-
ston County, Washington, except excluding that portion which 
begins at the northeast corner of the William Packwood Dona-
tion Claim Numbered 37, thence south along the east line of said 
claim, 655 feet to the point of beginning, thence south 655 feet; 
thence east 420 feet; thence north 655 feet; thence west 420 feet to 
place of beginning; all in section 8, township 18 north, range 1 
east, Willamette meridian, except including a strip of land 0.7 
foot in width, lying along the north boundary of said excluded 
tract, acquired by the United States of America on February 23, 
1942, by Declaration of Taking filed in United States District 
Court, Western District of Washington, Southern Division. 
(b) Title to the land described in subsection (a) shall remain in the 
United States under the administration of the Secretary of the 
Interior who shall hold the above-described tract of land for the Wa-
He-Lute Indian School so long as it is used for any of the above-
mentioned purposes. At such time as the land ceases to be used for 
the above purposes, title thereto shall be taken in trust for the benefit 
of Willy Frank, Nisqually Enrollee No. 19 (November 8, 1976), or his 
heirs. 
Approved June 17, 1980. 
LEGISLATIVE HISTORY: 
HOUSE REPORT No. 96-653 (Comm. on Interior and Insular Affairs). 
SENATE REPORT No. 96-629 (Comm. on Indian Affairs). 
CONGRESSIONAL RECORD: 
Vol. 125 (1979): Nov. 27, considered and passed House. 
Vol. 126 (1980): Mar. 19 considered and passed Senate, amended. 
June 9, House concurred in Senate amendments Nos. 1 through 
17 and concurred in Senate amendment No. 18 with amendments. 
June 12, Senate concurred in House amendments.