2000
<PRE>[DOCID: f:s1586enr.txt]
        S.1586

                       One Hundred Sixth Congress

                                 of the

                        United States of America


                          AT THE SECOND SESSION

           Begun and held at the City of Washington on Monday,
             the twenty-fourth day of January, two thousand


                                 An Act


 
  To reduce the fractionated ownership of Indian lands, and for other 
                                purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Indian Land Consolidation Act 
Amendments of 2000''.

                   TITLE I--INDIAN LAND CONSOLIDATION

SEC. 101. FINDINGS.

    Congress finds that--
        (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 members of Indian tribes;
        (2) as a result of the allotment Acts and related Federal 
    policies, over 90,000,000 acres of land have passed from tribal 
    ownership;
        (3) many trust allotments were taken out of trust status, often 
    without their owner's consent;
        (4) without restrictions on alienation, allotment owners were 
    subject to exploitation and their allotments were often sold or 
    disposed of without any tangible or enduring benefit to their 
    owners;
        (5) the trust periods for trust allotments have been extended 
    indefinitely;
        (6) because of the inheritance provisions in the original 
    treaties or allotment Acts, the ownership of many of the trust 
    allotments that have remained in trust status has become 
    fractionated into hundreds or thousands of undivided interests, 
    many of which represent 2 percent or less of the total interests;
        (7) Congress has authorized the acquisition of lands in trust 
    for individual Indians, and many of those lands have also become 
    fractionated by subsequent inheritance;
        (8) the acquisitions referred to in paragraph (7) continue to 
    be made;
        (9) the fractional interests described in this section often 
    provide little or no return to the beneficial owners of those 
    interests and the administrative costs borne by the United States 
    for those interests are inordinately high;
        (10) in Babbitt v. Youpee (117 S Ct. 727 (1997)), the United 
    States Supreme Court found the application of section 207 of the 
    Indian Land Consolidation Act (25 U.S.C. 2206) to the facts 
    presented in that case to be unconstitutional, forcing the 
    Department of the Interior to address the status of thousands of 
    undivided interests in trust and restricted lands;
        (11)(A) on February 19, 1999, the Secretary of the Interior 
    issued a Secretarial Order which officially reopened the probate of 
    all estates where an interest in land was ordered to escheat to an 
    Indian tribe pursuant to section 207 of the Indian Land 
    Consolidation Act (25 U.S.C. 2206); and
        (B) the Secretarial Order also directed appropriate officials 
    of the Bureau of Indian Affairs to distribute such interests ``to 
    the rightful heirs and beneficiaries without regard to 25 U.S.C. 
    2206'';
        (12) in the absence of comprehensive remedial legislation, the 
    number of the fractional interests will continue to grow 
    exponentially;
        (13) the problem of the fractionation of Indian lands described 
    in this section is the result of a policy of the Federal 
    Government, cannot be solved by Indian tribes, and requires a 
    solution under Federal law.
        (14) any devise or inheritance of an interest in trust or 
    restricted Indian lands is a matter of Federal law; and
        (15) consistent with the Federal policy of tribal self-
    determination, the Federal Government should encourage the 
    recognized tribal government that exercises jurisdiction over a 
    reservation to establish a tribal probate code for that 
    reservation.

SEC. 102. DECLARATION OF POLICY.

    It is the policy of the United States--
        (1) to prevent the further fractionation of trust allotments 
    made to Indians;
        (2) to consolidate fractional interests and ownership of those 
    interests into usable parcels;
        (3) to consolidate fractional interests in a manner that 
    enhances tribal sovereignty;
        (4) to promote tribal self-sufficiency and self-determination; 
    and
        (5) to reverse the effects of the allotment policy on Indian 
    tribes.
    SEC. 103. AMENDMENTS TO THE INDIAN LAND CONSOLIDATION ACT.
    The Indian Land Consolidation Act (25 U.S.C. 2201 et seq.) is 
amended--
        (1) in section 202--
            (A) in paragraph (1), by striking ``(1) `tribe''' and 
        inserting ``(1) `Indian tribe' or `tribe''';
            (B) by striking paragraph (2) and inserting the following:
        ``(2) `Indian' means any person who is a member of any Indian 
    tribe or is eligible to become a member of any Indian tribe, or any 
    person who has been found to meet the definition of `Indian' under 
    a provision of Federal law if the Secretary determines that using 
    such law's definition of Indian is consistent with the purposes of 
    this Act;'';
            (C) by striking ``and'' at the end of paragraph (3);
            (D) by striking the period at the end of paragraph (4) and 
        inserting ``; and''; and
            (E) by adding at the end the following:
        ``(5) `heirs of the first or second degree' means parents, 
    children, grandchildren, grandparents, brothers and sisters of a 
    decedent.'';
        (2) in section 205--
            (A) in the matter preceding paragraph (1)--
                (i) by striking ``Any Indian'' and inserting ``(a) In 
            General.--Subject to subsection (b), any Indian'';
                (ii) by striking the colon and inserting the following: 
            ``. Interests owned by an Indian tribe in a tract may be 
            included in the computation of the percentage of ownership 
            of the undivided interests in that tract for purposes of 
            determining whether the consent requirement under the 
            preceding sentence has been met.'';
                (iii) by striking ``: Provided, That--'' and inserting 
            the following:
    ``(b) Conditions Applicable to Purchase.--Subsection (a) applies on 
the condition that--'';
            (B) in paragraph (2)--
                (i) by striking ``If,'' and inserting ``if''; and
                (ii) by adding ``and'' at the end; and
            (C) by striking paragraph (3) and inserting the following:
        ``(3) the approval of the Secretary shall be required for a 
    land sale initiated under this section, except that such approval 
    shall not be required with respect to a land sale transaction 
    initiated by an Indian tribe that has in effect a land 
    consolidation plan that has been approved by the Secretary under 
    section 204.'';
        (3) by striking section 206 and inserting the following:
``SEC. 206. TRIBAL PROBATE CODES; ACQUISITIONS OF FRACTIONAL INTERESTS 
BY TRIBES.
    ``(a) Tribal Probate Codes.--
        ``(1) In general.--Notwithstanding any other provision of law, 
    any Indian tribe may adopt a tribal probate code to govern descent 
    and distribution of trust or restricted lands that are--
            ``(A) located within that Indian tribe's reservation; or
            ``(B) otherwise subject to the jurisdiction of that Indian 
        tribe.
        ``(2) Possible inclusions.--A tribal probate code referred to 
    in paragraph (1) may include--
            ``(A) rules of intestate succession; and
            ``(B) other tribal probate code provisions that are 
        consistent with Federal law and that promote the policies set 
        forth in section 102 of the Indian Land Consolidation Act 
        Amendment
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s of 2000.
        ``(3) Limitations.--The Secretary shall not approve a tribal 
    probate code if such code prevents an Indian person from inheriting 
    an interest in an allotment that was originally allotted to his or 
    her lineal ancestor.
    ``(b) Secretarial Approval.--
        ``(1) In general.--Any tribal probate code enacted under 
    subsection (a), and any amendment to such a tribal probate code, 
    shall be subject to the approval of the Secretary.
        ``(2) Review and approval.--
            ``(A) In general.--Each Indian tribe that adopts a tribal 
        probate code under subsection (a) shall submit that code to the 
        Secretary for review. Not later than 180 days after a tribal 
        probate code is submitted to the Secretary under this 
        paragraph, the Secretary shall review and approve or disapprove 
        that tribal probate code.
            ``(B) Consequence of failures to approve or disapprove a 
        tribal probate code.--If the Secretary fails to approve or 
        disapprove a tribal probate code submitted for review under 
        subparagraph (A) by the date specified in that subparagraph, 
        the tribal probate code shall be deemed to have been approved 
        by the Secretary, but only to the extent that the tribal 
        probate code is consistent with Federal law and promotes the 
        policies set forth in section 102 of the Indian Land 
        Consolidation Act Amendments of 2000.
            ``(C) Consistency of tribal probate code with act.--The 
        Secretary may not approve a tribal probate code, or any 
        amendment to such a code, under this paragraph unless the 
        Secretary determines that the tribal probate code promotes the 
        policies set forth in section 102 of the Indian Land 
        Consolidation Act Amendments of 2000.
            ``(D) Explanation.--If the Secretary disapproves a tribal 
        probate code, or an amendment to such a code, under this 
        paragraph, the Secretary shall include in the notice of 
        disapproval to the Indian tribe a written explanation of the 
        reasons for the disapproval.
            ``(E) Amendments.--
                ``(i) In general.--Each Indian tribe that amends a 
            tribal probate code under this paragraph shall submit the 
            amendment to the Secretary for review and approval. Not 
            later than 60 days after receiving an amendment under this 
            subparagraph, the Secretary shall review and approve or 
            disapprove the amendment.
                ``(ii) Consequence of failure to approve or disapprove 
            an amendment.--If the Secretary fails to approve or 
            disapprove an amendment submitted under clause (i), the 
            amendment shall be deemed to have been approved by the 
            Secretary, but only to the extent that the amendment is 
            consistent with Federal law and promotes the policies set 
            forth in section 102 of the Indian Land Consolidation Act 
            of 2000.
        ``(3) Effective dates.--A tribal probate code approved under 
    paragraph (2) shall become effective on the later of--
            ``(A) the date specified in section 207(g)(5); or
            ``(B) 180 days after the date of approval.
        ``(4) Limitations.--
            ``(A) Tribal probate codes.--Each tribal probate code 
        enacted under subsection (a) shall apply only to the estate of 
        a decedent who dies on or after the effective date of the 
        tribal probate code.
            ``(B) Amendments to tribal probate codes.--With respect to 
        an amendment to a tribal probate code referred to in 
        subparagraph (A), that amendment shall apply only to the estate 
        of a decedent who dies on or after the effective date of the 
        amendment.
        ``(5) Repeals.--The repeal of a tribal probate code shall--
            ``(A) not become effective earlier than the date that is 
        180 days after the Secretary receives notice of the repeal; and
            ``(B) apply only to the estate of a decedent who dies on or 
        after the effective date of the repeal.
    ``(c) Authority Available to Indian Tribes.--
        ``(1) In general.--If the owner of an interest in trust or 
    restricted land devises an interest in such land to a non-Indian 
    under section 207(a)(6)(A), the Indian tribe that exercises 
    jurisdiction over the parcel of land involved may acquire such 
    interest by paying to the Secretary the fair market value of such 
    interest, as determined by the Secretary on the date of the 
    decedent's death. The Secretary shall transfer such payment to the 
    devisee.
        ``(2) Limitation.--
            ``(A) In general.--Paragraph (1) shall not apply to an 
        interest in trust or restricted land if, while the decedent's 
        estate is pending before the Secretary, the non-Indian devisee 
        renounces the interest in favor of an Indian person.
            ``(B) Reservation of life estate.--A non-Indian devisee 
        described in subparagraph (A) or a non-Indian devisee described 
        in section 207(a)(6)(B), may retain a life estate in the 
        interest involved, including a life estate to the revenue 
        produced from the interest. The amount of any payment required 
        under paragraph (1) shall be reduced to reflect the value of 
        any life estate reserved by a non-Indian devisee under this 
        subparagraph.
        ``(3) Payments.--With respect to payments by an Indian tribe 
    under paragraph (1), the Secretary shall--
            ``(A) upon the request of the tribe, allow a reasonable 
        period of time, not to exceed 2 years, for the tribe to make 
        payments of amounts due pursuant to paragraph (1); or
            ``(B) recognize alternative agreed upon exchanges of 
        consideration or extended payment terms between the non-Indian 
        devisee described in paragraph (1) and the tribe in 
        satisfaction of the payment under paragraph (1).
    ``(d) Use of Proposed Findings by Tribal Justice Systems.--
        ``(1) Tribal justice system defined.--In this subsection, the 
    term `tribal justice system' has the meaning given that term in 
    section 3 of the Indian Tribal Justice Act (25 U.S.C. 3602).
        ``(2) Regulations.--The Secretary by regulation may provide for 
    the use of findings of fact and conclusions of law, as rendered by 
    a tribal justice system, as proposed findings of fact and 
    conclusions of law in the adjudication of probate proceedings by 
    the Department of the Interior.'';
        (4) by striking section 207 and inserting the following:

``SEC. 207. DESCENT AND DISTRIBUTION.

    ``(a) Testamentary Disposition.--
        ``(1) In general.--Interests in trust or restricted land may be 
    devised only to--
            ``(A) the decedent's Indian spouse or any other Indian 
        person; or
            ``(B) the Indian tribe with jurisdiction over the land so 
        devised.
        ``(2) Life estate.--Any devise of an interest in trust or 
    restricted land to a non-Indian shall create a life estate with 
    respect to such interest.
        ``(3) Remainder.--
            ``(A) In general.--Except where the remainder from the life 
        estate referred to in paragraph (2) is devised to an Indian, 
        such remainder shall descend to the decedent's Indian spouse or 
        Indian heirs of the first or second degree pursuant to the 
        applicable law of intestate succession.
            ``(B) Descent of interests.--If a decedent described in 
        subparagraph (A) has no Indian heirs of the first or second 
        degree, the remainder interest described in such subparagraph 
        shall descend to any of the decedent's collateral heirs of the 
        first or second degree, pursuant to the applicable laws of 
        intestate succession, if on the date of the decedent's death, 
        such heirs were a co-owner of an interest in the parcel of 
        trust o
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r restricted land involved.
            ``(C) Definition.--For purposes of this section, the term 
        `collateral heirs of the first or second degree' means the 
        brothers, sisters, aunts, uncles, nieces, nephews, and first 
        cousins, of a decedent.
        ``(4) Descent to tribe.--If the remainder interest described in 
    paragraph (3)(A) does not descend to an Indian heir or heirs it 
    shall descend to the Indian tribe that exercises jurisdiction over 
    the parcel of trust or restricted lands involved, subject to 
    paragraph (5).
        ``(5) Acquisition of interest by indian co-owners.--An Indian 
    co-owner of a parcel of trust or restricted land may prevent the 
    descent of an interest in Indian land to an Indian tribe under 
    paragraph (4) by paying into the decedent's estate the fair market 
    value of the interest in such land. If more than 1 Indian co-owner 
    offers to pay for such an interest, the highest bidder shall obtain 
    the interest. If payment is not received before the close of the 
    probate of the decedent's estate, the interest shall descend to the 
    tribe that exercises jurisdiction over the parcel.
        ``(6) Special rule.--
            ``(A) In general.--Notwithstanding paragraph (2), an owner 
        of trust or restricted land who does not have an Indian spouse, 
        Indian lineal descendant, an Indian heir of the first or second 
        degree, or an Indian collateral heir of the first or second 
        degree, may devise his or her interests in such land to any of 
        the decedent's heirs of the first or second degree or 
        collateral heirs of the first or second degree.
            ``(B) Acquisition of interest by tribe.--An Indian tribe 
        that exercises jurisdiction over an interest in trust or 
        restricted land described in subparagraph (A) may acquire any 
        interest devised to a non-Indian as provided for in section 
        206(c).
    ``(b) Intestate Succession.--
        ``(1) In general.--An interest in trust or restricted land 
    shall pass by intestate succession only to a decedent's spouse or 
    heirs of the first or second degree, pursuant to the applicable law 
    of intestate succession.
        ``(2) Life estate.--Notwithstanding paragraph (1), with respect 
    to land described in such paragraph, a non-Indian spouse or non-
    Indian heirs of the first or second degree shall only receive a 
    life estate in such land.
        ``(3) Descent of interests.--If a decedent described in 
    paragraph (1) has no Indian heirs of the first or second degree, 
    the remainder interest from the life estate referred to in 
    paragraph (2) shall descend to any of the decedent's collateral 
    Indian heirs of the first or second degree, pursuant to the 
    applicable laws of intestate succession, if on the date of the 
    decedent's death, such heirs were a co-owner of an interest in the 
    parcel of trust or restricted land involved.
        ``(4) Descent to tribe.--If the remainder interest described in 
    paragraph (3) does not descend to an Indian heir or heirs it shall 
    descend to the Indian tribe that exercises jurisdiction over the 
    parcel of trust or restricted lands involved, subject to paragraph 
    (5).
        ``(5) Acquisition of interest by indian co-owners.--An Indian 
    co-owner of a parcel of trust or restricted land may prevent the 
    descent of an interest in such land for which there is no heir of 
    the first or second degree by paying into the decedent's estate the 
    fair market value of the interest in such land. If more than 1 
    Indian co-owner makes an offer to pay for such an interest, the 
    highest bidder shall obtain the interest. If no such offer is made, 
    the interest shall descend to the Indian tribe that exercises 
    jurisdiction over the parcel of land involved.
    ``(c) Joint Tenancy; Right of Survivorship.--
        ``(1) Testate.--If a testator devises interests in the same 
    parcel of trust or restricted lands to more than 1 person, in the 
    absence of express language in the devise to the contrary, the 
    devise shall be presumed to create joint tenancy with the right of 
    survivorship in the land involved.
        ``(2) Intestate.--
            ``(A) In general.--Any interest in trust or restricted land 
        that--
                ``(i) passes by intestate succession to more than 1 
            person, including a remainder interest under subsection (a) 
            or (b) of section 207; and
                ``(ii) that constitutes 5 percent or more of the 
            undivided interest in a parcel of trust or restricted land;
        shall be held as tenancy in common.
            ``(B) Limited interest.--Any interest in trust or 
        restricted land that--
                ``(i) passes by intestate succession to more than 1 
            person, including a remainder interest under subsection (a) 
            or (b) of section 207; and
                ``(ii) that constitutes less than 5 percent of the 
            undivided interest in a parcel of trust or restricted land;
        shall be held by such heirs with the right of survivorship.
        ``(3) Effective date.--
            ``(A) In general.--This subsection (other than subparagraph 
        (B)) shall become effective on the later of--
                ``(i) the date referred to in subsection (g)(5); or
                ``(ii) the date that is six months after the date on 
            which the Secretary makes the certification required under 
            subparagraph (B).
            ``(B) Certification.--Upon a determination by the Secretary 
        that the Department of the Interior has the capacity, including 
        policies and procedures, to track and manage interests in trust 
        or restricted land held with the right of survivorship, the 
        Secretary shall certify such determination and publish such 
        certification in the Federal Register.
    ``(d) Descent of Off-Reservation Lands.--
        ``(1) Indian reservation defined.--For purposes of this 
    subsection, the term `Indian reservation' includes lands located 
    within--
            ``(A)(i) Oklahoma; and
            ``(ii) the boundaries of an Indian tribe's former 
        reservation (as defined and determined by the Secretary);
            ``(B) the boundaries of any Indian tribe's current or 
        former reservation; or
            ``(C) any area where the Secretary is required to provide 
        special assistance or consideration of a tribe's acquisition of 
        land or interests in land.
        ``(2) Descent.--Except in the State of California, upon the 
    death of an individual holding an interest in trust or restricted 
    lands that are located outside the boundaries of an Indian 
    reservation and that are not subject to the jurisdiction of any 
    Indian tribe, that interest shall descend either--
            ``(A) by testate or intestate succession in trust to an 
        Indian; or
            ``(B) in fee status to any other devises or heirs.
    ``(e) Approval of Agreements.--The official authorized to 
adjudicate the probate of trust or restricted lands shall have the 
authority to approve agreements between a decedent's heirs and devisees 
to consolidate interests in trust or restricted lands. The agreements 
referred to in the preceding sentence may include trust or restricted 
lands that are not a part of the decedent's estate that is the subject 
of the probate. The Secretary may promulgate regulations for the 
implementation of this subsection.
    ``(f) Estate Planning Assistance.--
        ``(1) In general.--The Secretary shall provide estate planning 
    assistance in accordance with this subsection, to the extent 
    amounts are appropriated for such purpose.
        ``(2) Requirements.--The estate planning assistance provided 
    under paragraph (1) shall be designed to--
            ``(A) inform, advise, and assist Indian landowners with 
        respect to estate planning in order to facilitate the transfer 
    
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    of trust or restricted lands to a devisee or devisees selected 
        by the landowners; and
            ``(B) assist Indian landowners in accessing information 
        pursuant to section 217(e).
        ``(3) Contracts.--In carrying out this section, the Secretary 
    may enter into contracts with entities that have expertise in 
    Indian estate planning and tribal probate codes.
    ``(g) Notification to Indian Tribes and Owners of Trust or 
Restricted Lands.--
        ``(1) In general.--Not later than 180 days after the date of 
    enactment of the Indian Land Consolidation Act Amendments of 2000, 
    the Secretary shall notify Indian tribes and owners of trust or 
    restricted lands of the amendments made by the Indian Land 
    Consolidation Act Amendments of 2000.
        ``(2) Specifications.--The notice required under paragraph (1) 
    shall be designed to inform Indian owners of trust or restricted 
    land of--
            ``(A) the effect of this Act, with emphasis on the effect 
        of the provisions of this section, on the testate disposition 
        and intestate descent of their interests in trust or restricted 
        land; and
            ``(B) estate planning options available to the owners, 
        including any opportunities for receiving estate planning 
        assistance or advice.
        ``(3) Requirements.--The Secretary shall provide the notice 
    required under paragraph (1)--
            ``(A) by direct mail for those Indians with interests in 
        trust and restricted lands for which the Secretary has an 
        address for the interest holder;
            ``(B) through the Federal Register;
            ``(C) through local newspapers in areas with significant 
        Indian populations, reservation newspapers, and newspapers that 
        are directed at an Indian audience; and
            ``(D) through any other means determined appropriate by the 
        Secretary.
        ``(4) Certification.--After providing notice under this 
    subsection, the Secretary shall certify that the requirements of 
    this subsection have been met and shall publish notice of such 
    certification in the Federal Register.
        ``(5) Effective date.--The provisions of this section shall not 
    apply to the estate of an individual who dies prior to the day that 
    is 365 days after the Secretary makes the certification required 
    under paragraph (4).'';
        (5) in section 208, by striking ``section 206'' and inserting 
    ``subsections (a) and (b) of section 206''; and
        (6) by adding at the end the following:
``SEC. 213. PILOT PROGRAM FOR THE ACQUISITION OF FRACTIONAL INTERESTS.
    ``(a) Acquisition by Secretary.--
        ``(1) In general.--The Secretary may acquire, at the discretion 
    of the Secretary and with the consent of the owner, and at fair 
    market value, any fractional interest in trust or restricted lands.
        ``(2) Authority of secretary.--
            ``(A) In general.--The Secretary shall have the authority 
        to acquire interests in trust or restricted lands under this 
        section during the 3-year period beginning on the date of 
        certification that is referred to in section 207(g)(5).
            ``(B) Required report.--Prior to expiration of the 
        authority provided for in subparagraph (A), the Secretary shall 
        submit the report required under section 218 concerning whether 
        the program to acquire fractional interests should be extended 
        or altered to make resources available to Indian tribes and 
        individual Indian landowners.
        ``(3) Interests held in trust.--Subject to section 214, the 
    Secretary shall immediately hold interests acquired under this Act 
    in trust for the recognized tribal government that exercises 
    jurisdiction over the land involved.
    ``(b) Requirements.--In implementing subsection (a), the 
Secretary--
        ``(1) shall promote the policies provided for in section 102 of 
    the Indian Land Consolidation Act Amendments of 2000;
        ``(2) may give priority to the acquisition of fractional 
    interests representing 2 percent or less of a parcel of trust or 
    restricted land, especially those interests that would have 
    escheated to a tribe but for the Supreme Court's decision in 
    Babbitt v. Youpee (117 S Ct. 727 (1997));
        ``(3) to the extent practicable--
            ``(A) shall consult with the tribal government that 
        exercises jurisdiction over the land involved in determining 
        which tracts to acquire on a reservation;
            ``(B) shall coordinate the acquisition activities with the 
        acquisition program of the tribal government that exercises 
        jurisdiction over the land involved, including a tribal land 
        consolidation plan approved pursuant to section 204; and
            ``(C) may enter into agreements (such agreements will not 
        be subject to the provisions of the Indian Self-Determination 
        and Education Assistance Act of 1974) with the tribal 
        government that exercises jurisdiction over the land involved 
        or a subordinate entity of the tribal government to carry out 
        some or all of the Secretary's land acquisition program; and
        ``(4) shall minimize the administrative costs associated with 
    the land acquisition program.
    ``(c) Sale of Interest to Indian Landowners.--
        ``(1) Conveyance at request.--
            ``(A) In general.--At the request of any Indian who owns at 
        least 5 percent of the undivided interest in a parcel of trust 
        or restricted land, the Secretary shall convey an interest 
        acquired under this section to the Indian landowner upon 
        payment by the Indian landowner of the amount paid for the 
        interest by the Secretary.
            ``(B) Limitation.--With respect to a conveyance under this 
        subsection, the Secretary shall not approve an application to 
        terminate the trust status or remove the restrictions of such 
        an interest.
        ``(2) Multiple owners.--If more than one Indian owner requests 
    an interest under paragraph (1), the Secretary shall convey the 
    interest to the Indian owner who owns the largest percentage of the 
    undivided interest in the parcel of trust or restricted land 
    involved.
        ``(3) Limitation.--If an Indian tribe that has jurisdiction 
    over a parcel of trust or restricted land owns 10 percent or more 
    of the undivided interests in a parcel of such land, such interest 
    may only be acquired under paragraph (1) with the consent of such 
    Indian tribe.
``SEC. 214. ADMINISTRATION OF ACQUIRED FRACTIONAL INTERESTS, 
DISPOSITION OF PROCEEDS.
    ``(a) In General.--Subject to the conditions described in 
subsection (b)(1), an Indian tribe receiving a fractional interest 
under section 213 may, as a tenant in common with the other owners of 
the trust or restricted lands, lease the interest, sell the resources, 
consent to the granting of rights-of-way, or engage in any other 
transaction affecting the trust or restricted land authorized by law.
    ``(b) Conditions.--
        ``(1) In general.--The conditions described in this paragraph 
    are as follows:
            ``(A) Until the purchase price paid by the Secretary for an 
        interest referred to in subsection (a) has been recovered, or 
        until the Secretary makes any of the findings under paragraph 
        (2)(A), any lease, resource sale contract, right-of-way, or 
        other document evidencing a transaction affecting the interest 
        shall contain a clause providing that all revenue derived from 
        the interest shall be paid to the Secretary.
            ``(B) Subject to subparagraph (C), the Secretary shall 
        deposit any revenue derived under subparagraph (A) into the 
        Acquisition Fund created under section 216.
            ``(C) The Secretary shall deposit any revenue that is paid 
        under subparagraph (A) that is in excess of the purchase price 
        of the fractional 
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interest involved to the credit of the Indian 
        tribe that receives the fractional interest under section 213 
        and the tribe shall have access to such funds in the same 
        manner as other funds paid to the Secretary for the use of 
        lands held in trust for the tribe.
            ``(D) Notwithstanding any other provision of law, including 
        section 16 of the Act of June 18, 1934 (commonly referred to as 
        the `Indian Reorganization Act') (48 Stat. 987, chapter 576; 25 
        U.S.C. 476), with respect to any interest acquired by the 
        Secretary under section 213, the Secretary may approve a 
        transaction covered under this section on behalf of a tribe 
        until--
                ``(i) the Secretary makes any of the findings under 
            paragraph (2)(A); or
                ``(ii) an amount equal to the purchase price of that 
            interest has been paid into the Acquisition Fund created 
            under section 216.
        ``(2) Exception.--Paragraph (1)(A) shall not apply to any 
    revenue derived from an interest in a parcel of land acquired by 
    the Secretary under section 213 after--
            ``(A) the Secretary makes a finding that--
                ``(i) the costs of administering the interest will 
            equal or exceed the projected revenues for the parcel 
            involved;
                ``(ii) in the discretion of the Secretary, it will take 
            an unreasonable period of time for the parcel to generate 
            revenue that equals the purchase price paid for the 
            interest; or
                ``(iii) a subsequent decrease in the value of land or 
            commodities associated with the land make it likely that 
            the interest will be unable to generate revenue that equals 
            the purchase price paid for the interest in a reasonable 
            time; or
            ``(B) an amount equal to the purchase price of that 
        interest in land has been paid into the Acquisition Fund 
        created under section 216.
    ``(c) Tribe Not Treated as Party to Lease; No Effect on Tribal 
Sovereignty, Immunity.--
        ``(1) In general.--Paragraph (2) shall apply with respect to 
    any undivided interest in allotted land held by the Secretary in 
    trust for a tribe if a lease or agreement under subsection (a) is 
    otherwise applicable to such undivided interest by reason of this 
    section even though the Indian tribe did not consent to the lease 
    or agreement.
        ``(2) Application of lease.--The lease or agreement described 
    in paragraph (1) shall apply to the portion of the undivided 
    interest in allotted land described in such paragraph (including 
    entitlement of the Indian tribe to payment under the lease or 
    agreement), and the Indian tribe shall not be treated as being a 
    party to the lease or agreement. Nothing in this section (or in the 
    lease or agreement) shall be construed to affect the sovereignty of 
    the Indian tribe.

``SEC. 215. ESTABLISHING FAIR MARKET VALUE.

    ``For purposes of this Act, the Secretary may develop a system for 
establishing the fair market value of various types of lands and 
improvements. Such a system may include determinations of fair market 
value based on appropriate geographic units as determined by the 
Secretary. Such system may govern the amounts offered for the purchase 
of interests in trust or restricted lands under section 213.

``SEC. 216. ACQUISITION FUND.

    ``(a) In General.--The Secretary shall establish an Acquisition 
Fund to--
        ``(1) disburse appropriations authorized to accomplish the 
    purposes of section 213; and
        ``(2) collect all revenues received from the lease, permit, or 
    sale of resources from interests in trust or restricted lands 
    transferred to Indian tribes by the Secretary under section 213 or 
    paid by Indian landowners under section 213(c).
    ``(b) Deposits; Use.--
        ``(1) In general.--Subject to paragraph (2), all proceeds from 
    leases, permits, or resource sales derived from an interest in 
    trust or restricted lands described in subsection (a)(2) shall--
            ``(A) be deposited in the Acquisition Fund; and
            ``(B) as specified in advance in appropriations Acts, be 
        available for the purpose of acquiring additional fractional 
        interests in trust or restricted lands.
        ``(2) Maximum deposits of proceeds.--With respect to the 
    deposit of proceeds derived from an interest under paragraph (1), 
    the aggregate amount deposited under that paragraph shall not 
    exceed the purchase price of that interest under section 213.

``SEC. 217. TRUST AND RESTRICTED LAND TRANSACTIONS.

    ``(a) Policy.--It is the policy of the United States to encourage 
and assist the consolidation of land ownership through transactions--
        ``(1) involving individual Indians;
        ``(2) between Indians and the tribal government that exercises 
    jurisdiction over the land; or
        ``(3) between individuals who own an interest in trust and 
    restricted land who wish to convey that interest to an Indian or 
    the tribal government that exercises jurisdiction over the parcel 
    of land involved;
in a manner consistent with the policy of maintaining the trust status 
of allotted lands. Nothing in this section shall be construed to apply 
to or to authorize the sale of trust or restricted lands to a person 
who is not an Indian.
    ``(b) Sales, Exchanges and Gift Deeds Between Indians and Between 
Indians and Indian Tribes.--
        ``(1) In general.--
            ``(A) Estimate of value.--Notwithstanding any other 
        provision of law and only after the Indian selling, exchanging, 
        or conveying by gift deed for no or nominal consideration an 
        interest in land, has been provided with an estimate of the 
        value of the interest of the Indian pursuant to this section--
                ``(i) the sale or exchange or conveyance of an interest 
            in trust or restricted land may be made for an amount that 
            is less than the fair market value of that interest; and
                ``(ii) the approval of a transaction that is in 
            compliance with this section shall not constitute a breach 
            of trust by the Secretary.
            ``(B) Waiver of requirement.--The requirement for an 
        estimate of value under subparagraph (A) may be waived in 
        writing by an Indian selling, exchanging, or conveying by gift 
        deed for no or nominal consideration an interest in land with 
        an Indian person who is the owner's spouse, brother, sister, 
        lineal ancestor of Indian blood, lineal descendant, or 
        collateral heir.
        ``(2) Limitation.--For a period of 5 years after the Secretary 
    approves a conveyance pursuant to this subsection, the Secretary 
    shall not approve an application to terminate the trust status or 
    remove the restrictions of such an interest.
    ``(c) Acquisition of Interest by Secretary.--An Indian, or the 
recognized tribal government of a reservation, in possession of an 
interest in trust or restricted lands, at least a portion of which is 
in trust or restricted status on the date of enactment of the Indian 
Land Consolidation Act Amendments of 2000 and located within a 
reservation, may request that the interest be taken into trust by the 
Secretary. Upon such a request, the Secretary shall forthwith take such 
interest into trust.
    ``(d) Status of Lands.--The sale, exchange, or conveyance by gift 
deed for no or nominal consideration of an interest in trust or 
restricted land under this section shall not affect the status of that 
land as trust or restricted land.
    ``(e) Land Ownership Information.--Notwithstanding any other 
provision of law, the names and mailing addresses of the Indian owners 
of trust or restricted lands, and information on the location of the 
parcel and the percentage of undivided interest owned by each 
individual, or of any interest in 
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trust or restricted lands, shall, 
upon written request, be made available to--
        ``(1) other Indian owners of interests in trust or restricted 
    lands within the same reservation;
        ``(2) the tribe that exercises jurisdiction over the land where 
    the parcel is located or any person who is eligible for membership 
    in that tribe; and
        ``(3) prospective applicants for the leasing, use, or 
    consolidation of such trust or restricted land or the interest in 
    trust or restricted lands.
    ``(f) Notice to Indian Tribe.--After the expiration of the 
limitation period provided for in subsection (b)(2) and prior to 
considering an Indian application to terminate the trust status or to 
remove the restrictions on alienation from trust or restricted land 
sold, exchanged or otherwise conveyed under this section, the Indian 
tribe that exercises jurisdiction over the parcel of such land shall be 
notified of the application and given the opportunity to match the 
purchase price that has been offered for the trust or restricted land 
involved.

``SEC. 218. REPORTS TO CONGRESS.

    ``(a) In General.--Prior to expiration of the authority provided 
for in section 213(a)(2)(A), the Secretary, after consultation with 
Indian tribes and other interested parties, shall submit to the 
Committee on Indian Affairs and the Committee on Energy and Natural 
Resources of the Senate and the Committee on Resources of the House of 
Representatives a report that indicates, for the period covered by the 
report--
        ``(1) the number of fractional interests in trust or restricted 
    lands acquired; and
        ``(2) the impact of the resulting reduction in the number of 
    such fractional interests on the financial and realty recordkeeping 
    systems of the Bureau of Indian Affairs.
    ``(b) Report.--The reports described in subsection (a) and section 
213(a) shall contain findings as to whether the program under this Act 
to acquire fractional interests in trust or restricted lands should be 
extended and whether such program should be altered to make resources 
available to Indian tribes and individual Indian landowners.
``SEC. 219. APPROVAL OF LEASES, RIGHTS-OF-WAY, AND SALES OF NATURAL 
RESOURCES.
    ``(a) Approval by the Secretary.--
        ``(1) In general.--Notwithstanding any other provision of law, 
    the Secretary may approve any lease or agreement that affects 
    individually owned allotted land or any other land held in trust or 
    restricted status by the Secretary on behalf of an Indian, if--
            ``(A) the owners of not less than the applicable percentage 
        (determined under subsection (b)) of the undivided interest in 
        the allotted land that is covered by the lease or agreement 
        consent in writing to the lease or agreement; and
            ``(B) the Secretary determines that approving the lease or 
        agreement is in the best interest of the owners of the 
        undivided interest in the allotted land.
        ``(2) Rule of construction.--Nothing in this section shall be 
    construed to apply to leases involving coal or uranium.
        ``(3) Definition.--In this section, the term `allotted land' 
    includes any land held in trust or restricted status by the 
    Secretary on behalf of one or more Indians.
    ``(b) Applicable Percentage.--
        ``(1) Percentage interest.--The applicable percentage referred 
    to in subsection (a)(1) shall be determined as follows:
            ``(A) If there are 5 or fewer owners of the undivided 
        interest in the allotted land, the applicable percentage shall 
        be 100 percent.
            ``(B) If there are more than 5 such owners, but fewer than 
        11 such owners, the applicable percentage shall be 80 percent.
            ``(C) If there are more than 10 such owners, but fewer than 
        20 such owners, the applicable percentage shall be 60 percent.
            ``(D) If there are 20 or more such owners, the applicable 
        percentage shall be a majority of the interests in the allotted 
        land.
        ``(2) Determination of owners.--
            ``(A) In general.--For purposes of this subsection, in 
        determining the number of owners of, and their interests in, 
        the undivided interest in the allotted land with respect to a 
        lease or agreement, the Secretary shall make such determination 
        based on the records of the Department of the Interior that 
        identify the owners of such lands and their interests and the 
        number of owners of such land on the date on which the lease or 
        agreement involved is submitted to the Secretary under this 
        section.
            ``(B) Rule of construction.--Nothing in subparagraph (A) 
        shall be construed to authorize the Secretary to treat an 
        Indian tribe as the owner of an interest in allotted land that 
        did not escheat to the tribe pursuant to section 207 as a 
        result of the Supreme Court's decision in Babbitt v. Youpee 
        (117 S Ct. 727 (1997)).
    ``(c) Authority of Secretary To Sign Lease or Agreement on Behalf 
of Certain Owners.--The Secretary may give written consent to a lease 
or agreement under subsection (a)--
        ``(1) on behalf of the individual Indian owner if the owner is 
    deceased and the heirs to, or devisees of, the interest of the 
    deceased owner have not been determined; or
        ``(2) on behalf of any heir or devisee referred to in paragraph 
    (1) if the heir or devisee has been determined but cannot be 
    located
    ``(d) Effect of Approval.--
        ``(1) Application to all parties.--
            ``(A) In general.--Subject to paragraph (2), a lease or 
        agreement approved by the Secretary under subsection (a) shall 
        be binding on the parties described in subparagraph (B), to the 
        same extent as if all of the owners of the undivided interest 
        in allotted land covered under the lease or agreement consented 
        to the lease or agreement.
            ``(B) Description of parties.--The parties referred to in 
        subparagraph (A) are--
                ``(i) the owners of the undivided interest in the 
            allotted land covered under the lease or agreement referred 
            to in such subparagraph; and
                ``(ii) all other parties to the lease or agreement.
        ``(2) Tribe not treated as party to lease; no effect on tribal 
    sovereignty, immunity.--
            ``(A) In general.--Subparagraph (B) shall apply with 
        respect to any undivided interest in allotted land held by the 
        Secretary in trust for a tribe if a lease or agreement under 
        subsection (a) is otherwise applicable to such undivided 
        interest by reason of this section even though the Indian tribe 
        did not consent to the lease or agreement.
            ``(B) Application of lease.--The lease or agreement 
        described in subparagraph (A) shall apply to the portion of the 
        undivided interest in allotted land described in such paragraph 
        (including entitlement of the Indian tribe to payment under the 
        lease or agreement), and the Indian tribe shall not be treated 
        as being a party to the lease or agreement. Nothing in this 
        section (or in the lease or agreement) shall be construed to 
        affect the sovereignty of the Indian tribe.
    ``(e) Distribution of Proceeds.--
        ``(1) In general.--The proceeds derived from a lease or 
    agreement that is approved by the Secretary under subsection (a) 
    shall be distributed to all owners of undivided interest in the 
    allotted land covered under the lease or agreement.
        ``(2) Determination of amounts distributed.--The amount of the 
    proceeds under paragraph (1) that are distributed to each owner 
    under that paragraph shall be determined in accordance with the 
    portion of the undivided interest in the allotted land covered 
    under the lease or agreement that is owned by that owner.
    ``(f) Rule of Construction.--Nothing in this
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 section shall be 
construed to amend or modify the provisions of Public Law 105-188 (25 
U.S.C. 396 note), the American Indian Agricultural Resources Management 
Act (25 U.S.C. 3701 et seq.), title II of the Indian Land Consolidation 
Act Amendments of 2000, or any other Act that provides specific 
standards for the percentage of ownership interest that must approve a 
lease or agreement on a specified reservation.

``SEC. 220. APPLICATION TO ALASKA.

    ``(a) Findings.--Congress finds that--
        ``(1) numerous academic and governmental organizations have 
    studied the nature and extent of fractionated ownership of Indian 
    land outside of Alaska and have proposed solutions to this problem; 
    and
        ``(2) despite these studies, there has not been a comparable 
    effort to analyze the problem, if any, of fractionated ownership in 
    Alaska.
    ``(b) Application of Act to Alaska.--Except as provided in this 
section, this Act shall not apply to land located within Alaska.
    ``(c) Rule of Construction.--Nothing in this section shall be 
construed to constitute a ratification of any determination by any 
agency, instrumentality, or court of the United States that may support 
the assertion of tribal jurisdiction over allotment lands or interests 
in such land in Alaska.''.

SEC. 104. JUDICIAL REVIEW.

    Notwithstanding section 207(g)(5) of the Indian Land Consolidation 
Act (25 U.S.C. 2206(f)(5)), after the Secretary of the Interior 
provides the certification required under section 207(g)(4) of such 
Act, the owner of an interest in trust or restricted land may bring an 
administrative action to challenge the application of such section 207 
to the devise or descent of his or her interest or interests in trust 
or restricted lands, and may seek judicial review of the final decision 
of the Secretary of the Interior with respect to such challenge.

SEC. 105. AUTHORIZATION OF APPROPRIATIONS.

    There are authorized to be appropriated not to exceed $8,000,000 
for fiscal year 2001 and each subsequent fiscal year to carry out the 
provisions of this title (and the amendments made by this title) that 
are not otherwise funded under the authority provided for in any other 
provision of Federal law.

SEC. 106. CONFORMING AMENDMENTS.

    (a) Patents Held in Trust.--The Act of February 8, 1887 (24 Stat. 
388) is amended--
        (1) by repealing sections 1, 2, and 3 (25 U.S.C. 331, 332, and 
    333); and
        (2) in the second proviso of section 5 (25 U.S.C. 348)--
            (A) by striking ``and partition''; and
            (B) by striking ``except'' and inserting ``except as 
        provided by the Indian Land Consolidation Act or a tribal 
        probate code approved under such Act and except''.
    (b) Ascertainment of Heirs and Disposal of Allotments.--The Act of 
June 25, 1910 (36 Stat. 855) is amended--
        (1) in the first sentence of section 1 (25 U.S.C. 372), by 
    striking ``under'' and inserting ``under the Indian Land 
    Consolidation Act or a tribal probate code approved under such Act 
    and pursuant to''; and
        (2) in the first sentence of section 2 (25 U.S.C. 373), by 
    striking ``with regulations'' and inserting ``with the Indian Land 
    Consolidation Act or a tribal probate code approved under such Act 
    and regulations''.
    (c) Transfer of Lands.--Section 4 of the Act of June 18, 1934 (25 
U.S.C. 464) is amended by striking ``member or:'' and inserting 
``member or, except as provided by the Indian Land Consolidation 
Act,''.

            TITLE II--LEASES OF NAVAJO INDIAN ALLOTTED LANDS

SEC. 201. LEASES OF NAVAJO INDIAN ALLOTTED LANDS.

    (a) Definitions.--In this section:
        (1) Indian tribe.--The term ``Indian tribe'' has the meaning 
    given the term in section 4(e) of the Indian Self-Determination and 
    Education Assistance Act (25 U.S.C. 450b(e)).
        (2) Individually owned navajo indian allotted land.--The term 
    ``individually owned Navajo Indian allotted land'' means Navajo 
    Indian allotted land that is owned in whole or in part by 1 or more 
    individuals.
        (3) Navajo indian.--The term ``Navajo Indian'' means a member 
    of the Navajo Nation.
        (4) Navajo indian allotted land.--The term ``Navajo Indian 
    allotted land'' means a single parcel of land that--
            (A) is located within the jurisdiction of the Navajo 
        Nation; and
            (B)(i) is held in trust or restricted status by the United 
        States for the benefit of Navajo Indians or members of another 
        Indian tribe; and
            (ii) was--
                (I) allotted to a Navajo Indian; or
                (II) taken into trust or restricted status by the 
            United States for a Navajo Indian.
        (5) Owner.--The term ``owner'' means, in the case of any 
    interest in land described in paragraph (4)(B)(i), the beneficial 
    owner of the interest.
        (6) Secretary.--The term ``Secretary'' means the Secretary of 
    the Interior.
    (b) Approval by the Secretary.--
        (1) In general.--The Secretary may approve an oil or gas lease 
    or agreement that affects individually owned Navajo Indian allotted 
    land, if--
            (A) the owners of not less than the applicable percentage 
        (determined under paragraph (2)) of the undivided interest in 
        the Navajo Indian allotted land that is covered by the oil or 
        gas lease or agreement consent in writing to the lease or 
        agreement; and
            (B) the Secretary determines that approving the lease or 
        agreement is in the best interest of the owners of the 
        undivided interest in the Navajo Indian allotted land.
        (2) Percentage interest.--The applicable percentage referred to 
    in paragraph (1)(A) shall be determined as follows:
            (A) If there are 10 or fewer owners of the undivided 
        interest in the Navajo Indian allotted land, the applicable 
        percentage shall be 100 percent.
            (B) If there are more than 10 such owners, but fewer than 
        51 such owners, the applicable percentage shall be 80 percent.
            (C) If there are 51 or more such owners, the applicable 
        percentage shall be 60 percent.
        (3) Authority of secretary to sign lease or agreement on behalf 
    of certain owners.--The Secretary may give written consent to an 
    oil or gas lease or agreement under paragraph (1) on behalf of an 
    individual Indian owner if--
            (A) the owner is deceased and the heirs to, or devisees of, 
        the interest of the deceased owner have not been determined; or
            (B) the heirs or devisees referred to in subparagraph (A) 
        have been determined, but 1 or more of the heirs or devisees 
        cannot be located.
        (4) Effect of approval.--
            (A) Application to all parties.--
                (i) In general.--Subject to subparagraph (B), an oil or 
            gas lease or agreement approved by the Secretary under 
            paragraph (1) shall be binding on the parties described in 
            clause (ii), to the same extent as if all of the owners of 
            the undivided interest in Navajo Indian allotted land 
            covered under the lease or agreement consented to the lease 
            or agreement.
                (ii) Description of parties.--The parties referred to 
            in clause (i) are--

                    (I) the owners of the undivided interest in the 
                Navajo Indian allotted land covered under the lease or 
                agreement referred to in clause (i); and
                    (II) all other parties to the lease or agreement.

            (B) Effect on indian tribe.--If--
                (i) an Indian tribe is the owner of a portion of an 
            undivided interest in Navajo Indian allotted land; and
                (ii) an oil or gas lease or agreement under paragraph 
            (1) is otherwise applicable to such portion by reason of 
            this subsection even though the Indian tribe did not 
            consent to t
576
he lease or agreement,
        then the lease or agreement shall apply to such portion of the 
        undivided interest (including entitlement of the Indian tribe 
        to payment under the lease or agreement), but the Indian tribe 
        shall not be treated as a party to the lease or agreement and 
        nothing in this subsection (or in the lease or agreement) shall 
        be construed to affect the sovereignty of the Indian tribe.
        (5) Distribution of proceeds.--
            (A) In general.--The proceeds derived from an oil or gas 
        lease or agreement that is approved by the Secretary under 
        paragraph (1) shall be distributed to all owners of the 
        undivided interest in the Navajo Indian allotted land covered 
        under the lease or agreement.
            (B) Determination of amounts distributed.--The amount of 
        the proceeds under subparagraph (A) distributed to each owner 
        under that subparagraph shall be determined in accordance with 
        the portion of the undivided interest in the Navajo Indian 
        allotted land covered under the lease or agreement that is 
        owned by that owner.

                               Speaker of the House of Representatives.

                            Vice President of the United States and    
                                               President of the Senate.

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