EMAIL RECEIVED AT
ITMA
To:
Mel Tonasket and Gene Joseph, Colville Tribes
Darrell Hilaire and Jewel James, Lummi Nation
Peal Capoeman-Baller, Quinault Nation
Lyle Marshall and Danny Jordan, Hoopa
Tribes
cc:
Jackie Johnson, NCAI
Mary Zuni Chalan, ITMA
Eric Eberhard, Dorsey Whitney
Dan Belcourt, Atty Chippewa Cree
Aaron Thomas and Teresa Butler, Lummi
Nation staff <<2005 Trust Reform
Leg.3.301505.doc>>
Jennifer Hughes, Hoopa Tribal
Atty.
Fr: Alan Parker
Attached to this email
please find a copy of draft legislation on Indian Trust Reform that was
developed by the Tribal Trust Reform Coalition over the course of several
meetings in
The draft legislation is based on S. 1459, 108th Congress, a bill sponsored by Sen.'s McCain and Daschle in 2003. That bill was intended to address tribal concerns with the Norton/Swimmer administration of trust reform within the Dept. of Interior by establishing a Deputy Sec. for Indian Affairs in DOI in lieu of the Office of Special Trustee and placing the Deputy Sec. that would be under the oversight of a 3 year Commission for Review of Indian Trust Funds Management. In addition to these structural reforms, S. 1459 included a provision that adopted the Standards for the Administration of Indian Trust Management, including Indian trust lands, resources and treaty rights, that had been established by Secretarial Order in 2000 under Sec. Babbitt. Arguably, the adoption of these standards by Act of Congress is much more important and substantive than any structural or organizational changes in the Dept. of Interior.
The Tribal Coalition's bill keeps the two main provisions of the McCain/Daschle, the affirmation of Trust Standards by Congress and elevation of Indian Trust duties to a Deputy Sec. (while eliminating the OST), and adds a new provision that proposes to settle the Cobell case through binding arbitration. (see Sec. 8, pages 13-16 of the draft). If adopted the binding arbitration process would only apply to the Cobell case and would not addresss any "non-Cobell" tribal claims for trust funds accounting or for damages to trust assets. Thus, the Coalition bill includes a place holder (i.e., yet to be drafted) for addressing such tribal claims in Sec. 9 as well as place-holder sections on fractionated heirship issues (Sec. 10) and establishing an Independent Legal Counsel for the Trustee (Sec. 11).
The Hoopa Tribe is a member of the tribal coalition and in response to their interest in continuing the demonstration project in direct management of tribal trust resources authorized in the so-called "Sec. 139 provision" in the Int. 2004 Appropriation Act, (now sec 131 of the 2005 bill) the draft bill contains authority for a 5 year demonstration project. (see Sec. 7 of the draft)
Drafting services for the
Tribal Coalition have been provided by Eric Eberhard
with assistance of Alan Parker. We hope that this product accurately reflects
the goals and purposes of the Tribal Coalition and that the NCAI - ITMA task
force concludes that this legislative proposal has merit and may serve as an
effective starting point in their work with the Congress this session in
addressing this vitally important matter.
____________________________
Be it enacted by the Senate and House of
Representatives of the
This Act may be cited as the “American Indian
Trust Fund Management Reform Act Amendments Act of 2005”.
Section 2 of the American Indian Trust Fund Management Reform Act of 1994 (25 U.S.C. 4001) is amended—
(1) by redesignating paragraphs (1), (2), (3), (4), (5), and (6) as paragraphs (7), (4), (6), (5), (2), and (3), respectively, and moving those paragraphs so as to appear in numerical order;
(2) by inserting before paragraph (2) (as redesignated by paragraph (1)) the following:
“(1) AUDIT.—The term ‘audit’ means an audit using accounting procedures that conform to generally accepted accounting principles and auditing procedures that conform to chapter 75 of title 31, United States Code (commonly known as the ‘Single Audit Act of 1984’).”; and
(3) by adding at the end the following:
“(8) TRIBAL GOVERNMENT—The term ‘tribal government’ means the governing body of an Indian tribe.
“(9) TRUST ASSET.—The term ‘trust asset’ means any tangible property (such as land, a mineral, coal, oil or gas, a, forest resource, an agricultural resource, water, a water source, fish, or wildlife) held by the Secretary for the benefit of an Indian tribe or an individual member of an Indian tribe in accordance with Federal law.
“(10) TRUST FUNDS.—The term ‘trust funds’ means—
‘‘(A) all monies or proceeds derived from trust assets; and
“(B) all funds held by the Secretary for the benefit of an Indian tribe or an individual member of an Indian tribe in accordance with Federal law.
“(11) TRUSTEE.—The term ‘trustee’ means the Secretary or any other person that is authorized to act as a trustee for trust assets and trust funds.”.
Section 102 of the American Indian Trust Fund Management Reform Act of 1994 (25 U.S.C. 4011) is amended to read as follows:
“(a) —ADMINISTRATION
“(1) providing for adequate systems for accounting for and reporting trust fund balances;
“(2) providing for adequate controls over receipts and disbursements;
“(3) providing for periodic, timely reconciliations of financial records to ensure the accuracy of account information;
“(4) determining accurate cash balances;
“(5) preparing and supplying to account holders periodic account statements;
“(6) establishing and publishing in the Federal Register consistent policies and procedures for trust fund management and accounting;
“(7) providing adequate staffing, supervision, and training for trust fund management and accounting; and
“(8) managing natural resources located within the boundaries of Indian reservations and trust land.”.
(b) ACCOUNTING FOR DAILY
“(1) IN GENERAL.—The Secretary shall account for the daily and annual balances of all trust funds.
“(2) PERIODIC STATEMENT OF PERFORMANCE.—
“(A) IN GENERAL.—Not later than 20 business days after the close of the second calendar quarter after the date of enactment of this paragraph, and not later than 20 business days after the close of each calendar quarter thereafter, the Secretary shall provide to each Indian tribe and individual Indian for whom the Secretary manages trust funds a statement of performance for the trust funds.
“(B) REQUIREMENTS.—Each statement under subparagraph (A) shall identify, with respect to the period covered by the statement—
“(i) the source, type, and status of the funds;
“(ii) the beginning balance of the funds;
“(iii) the gains and losses of the funds;
“(iv) receipts and disbursements of the funds; and
“(v) the ending balance of the funds.
“(3) AUDITS.—With respect to each account containing trust funds, the Secretary shall—
“(A) for accounts with less than $1,000, group accounts separately to allow for statistical sampling audit procedures;
“(B) for accounts containing more than $1,000 at any time during a given fiscal year—
“(i) conduct, for each fiscal year, an audit of all trust funds; and
“(ii) include, in the first statement of performance after completion of the audit, a letter describing the results of the audit.
Title I of the American Indian Trust Fund Management Reform Act of 1994 (25 U.S.C. 4011 et seq.) is amended by adding at the end the following:
“Congress affirms that the proper discharge of trust
responsibility of the
“(1) protect and preserve Indian trust assets from loss, damage, unlawful alienation, waste, and depletion;
“(2) ensure that any management of Indian trust assets required to be carried out by the Secretary—
“(A) promotes the interest of the beneficial owner; and
“(B) supports, to the maximum
extent practicable in accordance with the trust responsibility of the
Secretary, the beneficial owner’s intended use of the assets;
“(3) (A) enforce the terms of all
leases or other agreements that provide for the use of trust assets; and
(B) take appropriate steps to remedy trespass on trust or restricted land;
“(4) promote tribal control and self-determination over tribal trust land and resources without diminishing the trust responsibility of the Secretary;
“(5) select and oversee persons that manage Indian trust assets;
“(6) confirm that Indian tribes that manage Indian trust assets in accordance with contracts and compacts authorized by the Indian Self-Determination and Education Assistance Act (25 U.S.C. 450 et seq.) protect and prudently manage those Indian trust assets;
“(7) provide oversight and review of the performance of the trust responsibility of the Secretary, including Indian trust asset and investment management programs, operational systems, and information systems;
“(8) account for and identify, collect, deposit, invest, and distribute, in a timely manner, income due or held on behalf of tribal and individual Indian account holders;
“(9) maintain a verifiable system of records that, at a minimum, is capable of identifying, with respect to a trust asset—
“(A) the location of the trust asset;
“(B) the beneficial owners of the trust asset;
“(C) any legal encumbrances (such as leases or permits) applicable to the trust asset;
“(D) the user of the trust asset;
“(E) any rent or other payments made;
“(F) the value of trust or restricted land and resources associated with the trust asset;
“(G) dates of—
“(i) collections;
“(ii) deposits;
“(iii) transfers;
“(iv) disbursements;
“(v) imposition of third-party obligations (such as court-ordered child support or judgments);
“(vi) statements of earnings;
“(vii) investment instruments; and
“(viii) closure of all trust fund accounts relating to the trust fund asset;
“(H) documents pertaining to actions taken to prevent or compensate for any, diminishment of the Indian trust asset; and
“(I) documents that evidence the actions of the Secretary regarding the management and disposition of the Indian trust asset;
“(10) establish and maintain a system of records that—
“(A) permits beneficial owners to obtain information regarding Indian trust assets in a, timely manner; and
“(B) protects the privacy of that information;
“(11) invest tribal and individual Indian trust funds to ensure that the trust account remains reasonably productive for the beneficial owner consistent with market conditions existing at the time at which investment is made;
“(12) communicate with beneficial owners regarding the management and administration of Indian trust assets; and
“(13) protect treaty-based fishing, hunting, gathering, and similar rights-of-access and resource use on traditional tribal land.”.
Section 202 of the American Indian Thrust Fund Management Reform Act of 1994 (25 U.S.C. 4022) is amended by striking subsection (c) and inserting the following:
“(c) MANAGEMENT THROUGH SELF-DETERMINATION AUTHORITY.—
“(1) IN GENERAL.—An Indian tribe may use authority granted to the Indian tribe under the Indian Self-Determination and Education Assistance Act (25 U.S.C. 450 et seq.) to manage Indian trust funds and trust assets without terminating—
“(A) the trust responsibility of the Secretary; or
“(B) the trust status of the funds and assets.
“(2) NO EFFECT ON TRUST RESPONSIBILITY.—Nothing in this
subsection diminishes or otherwise impairs the trust responsibility of the
(a) IN GENERAL.—Section 302 of the American Indian Trust Fund Management Reform Act of 1994 (25 U.S.C. 4042) is amended to read as follows:
“(a) ESTABLISHMENT.—
“(1) IN GENERAL.—There is established within the Department the position of Deputy Secretary for Indian Affairs (referred to in this section as the `Deputy Secretary’), who shall report directly to the Secretary.
“(2) APPOINTMENT.—The Deputy Secretary shall be appointed by the President, by and with the advice and consent of the Senate.
“(b) DUTIES.—
“(1) IN GENERAL.—The Deputy Secretary shall—
“(A) oversee the Bureau of Indian Affairs;
“(B) be responsible for carrying out all duties assigned to the Assistant Secretary for Indian Affairs as of the day before the date of enactment of the American Indian Trust Fund Management Reform Act Amendments Act of 2005;
“(C) oversee all trust fund and trust asset matters of the Department, including—
“(i) administration and management;
“(ii) financial and human resource matters; and
“(iii) all duties relating to trust fund and trust asset matters;
“(D) engage in appropriate government-to-government relations and consultations with Indian tribes and individual trust asset and trust fund account holders on matters involving trust asset and trust fund management and reform within the Department; and
“(E) carry out such other duties relating to Indian affairs as the Secretary may assign.
“(2) TRANSFER OF DUTIES.
(A) ASSISTANT SECRETARY FOR INDIAN AFFAIRS.—As of the date of enactment of the American Indian Trust Fund Management Reform Act Amendments Act of 2005, all duties, functions and funding assigned to the Assistant Secretary for Indian Affairs shall be transferred to, and become the responsibility of, the Deputy Secretary.
(B) SPECIAL TRUSTEE. The Office of Special Trustee is hereby terminated. As of the date of enactment of the American Indian Trust Management and Reform Act Amendments of 2005, all duties, functions, and funding assigned to the Special Trustee shall be transferred to, and become the responsibility of, the Deputy Secretary.
“(3) SUCCESSION.—Any official who is serving as Assistant Secretary for Indian Affairs on the date of enactment of the American Indian Trust Fund Management Reform Act Amendments Act of 2005 and who was appointed by the President, by and with the advice and consent of the Senate, shall not be required to be reappointed under subsection (a) to the successor position authorized under subsection (a) if the Secretary approves the occupation by the official of the position by the date that is 180 days after the date of enactment of the American Indian Trust Fund Management Reform Act Amendments Act of 2005 (or such later date determined by the Secretary if litigation delay’s rapid succession).
“(c) STAFF.—In carrying out this section, the Deputy Secretary may hire such staff having expertise in trust asset and trust fund management, financial organization and management, and Federal Indian law and policy as the Deputy Secretary determines is necessary to carry out this title.
“(d) ASSUMPTION BY TRIBES. All funds and functions of the Deputy Secretary, including those transferred from the Office of Special Trustee, are available for assumption by an Indian tribe in the same manner as any other Indian program, services, functions, or activities.
(e) EFFECT ON DUTIES OF OTHER OFFICIALS.—
“(1) IN GENERAL.—Except as provided in subsection (c) and
paragraph (2), nothing in this section diminishes any responsibility or duty of
the Deputy Secretary of the Interior appointed under the Act of
“(2) TRUST ASSET
“(f) TRUST IMPLEMENTATION
“(1) ESTABLISHMENT.—There is established within the Office of the Deputy Secretary responsibility for Trust Implementation and Oversight.
“(2) DUTIES.—The Deputy Secretary shall—
“(A) provide direct oversight of the day-to-day activities of all Department of Interior agencies to the extent that such agencies administer or manage any Indian trust assets or funds;
“(B) administer, in accordance with
title II, all trust properties, funds, and other assets held by the
“(C) require the development and maintenance of an accurate inventory of all trust funds and trust assets;
“(D) ensure the prompt posting of revenue derived from a trust fund or trust asset for the benefit of each Indian tribe (or individual member of each Indian tribe) that owns a beneficial interest in the trust fund or trust asset;
“(E) ensure that all trust fund accounts are audited at least annually, and more frequently as determined to be necessary by the Deputy Secretary;
“(F) ensure that the Deputy Secretary, the Director of the Bureau of Land Management, the Commissioner of Reclamation, and the Director of the Minerals Management Service provide to the Secretary current and accurate information relating to the administration and management of trust funds and trust assets;
“(G) provide for regular consultation with trust fund account holders on the administration of trust funds and trust assets to ensure, to the maximum extent practicable in accordance with applicable law and a Plan approved under section 202, the greatest return on those funds and assets for the trust fund account holders consistent with the beneficial owners’ intended uses for the trust funds; and
(H) oversee and coordinate the management of trust assets by Department of Interior agencies.
“(f) AUTHORIZATION OF APPROPRIATIONS.—There are authorized to be appropriated such sums as are necessary to carry out this section.”.
(b) CONFORMING AMENDMENTS.—
(1) IN GENERAL.—
(A) Section 5313 of title 5, United States Code, is amended by inserting “Deputy Secretary of the Interior for Indian Affairs” after “Deputy Secretary of the Interior”.
(B) Section 5315 of title 5, United States Code, is amended by striking “Assistant Secretaries of the Interior (6)” and inserting “Assistant Secretaries of the Interior (5)”.
(C) Title
(D) Section 301(1) of the American Indian Trust Fund Management Reform Act of 1994 (25 U.S.C. 4041(1)) is amended by striking “by establishing in the Department of the Interior an Office of Special Trustee for American Indians” and inserting “by directing the Deputy Secretary .
(E) Section 303 of the American Indian Trust Fund Management Reform Act of 1994 (25 U.S.C. 4043) is amended—
(i) by striking the section heading and inserting the following:
(ii) in subsection (a) (1), by striking “section 302(b) of this title” and inserting “section 302(a)(2)”;
(iii) in subsection (e)—
(I) by striking the subsection heading and inserting the following:
“(e) ACCESS OF DEPUTY SECRETARY.—”; and
(II) by striking “of his duties” and inserting “of the duties of the Deputy Secretary”; and
(iv) by striking “Special Trustee” each place it appears and inserting “Deputy Secretary”.
(F) Sections 304 and 305 of the American Indian Trust Fund Management Reform Act of 1994 (25 U.S.C. 4044, 4045) are amended by striking “Special Trustee” each place it appears and inserting “Deputy Secretary”.
(G) The first section of Public Law 92-22 (43 U.S.C. 1453x) is repealed.
(H) Any reference in a law, map, regulation, document, paper,
or other record of the
(2) EFFECTIVE DATE.—The amendments made by this subsection take effect on the date on which a Deputy Secretary for Indian Affairs is appointed under section 302 of the American Indian Trust Fund Management Reform Act (as amended by subsection (a)).
(a) IN GENERAL - The American Indian Trust Fund Management Reform Act is amended to add a new Section 307 as follows:
(a). PURPOSE. The Tribal Management of Trust Assets Demonstration Project (“Project”) is intended to - :
(1). Enhance the working relationship between the participating tribes and Department of the Interior for trust management activities by establishing mutually acceptable methods for addressing trust issues in a manner that is consistent with tribal priorities and applicable federal laws;
(2). Maintain a standard of good faith in the administration of federal trust responsibilities to Indian tribes, the right of tribal self-determination and self-governance, the government-to-government relationship between the Indian tribes and the United States, and provide a meaningful working relationship with participating tribes.
(3). Establish a process for the full implementation of the Project and further the continuation of meaningful partnerships between the participating tribes and the Secretary;
(4). Recognize and utilize tribal expertise and systems to accomplish appropriate management of trust resources, use those opportunities to explore the development of effective working models relating to the management of trust resources, and develop meaningful and measurable means of quantifying the respective values, standards and priorities of the participating tribes and the Department.
(5). Identify ways of resolving conflicting management prescriptions between tribal and federal standards, priorities and values in non- litigation and cooperative government-to-government forums, and memorialize those conflict resolution methodologies in a participating tribe’s funding agreement.
(b). AUTHORITY. The Secretary of the Interior shall, for a period not to exceed five years following enactment of this section, administer a demonstration project to be known as the Tribal Management of Trust Assets Demonstration Project according to the provisions of this title. The Project shall provide for the direct Tribal administration and management of trust resources and trust assets, including the administration of any funds appropriated by Congress for the management of Indian assets and funds, which also includes such funds intended for trust improvement activities.
(c). TRIBAL PARTICIPATION
(1). Any tribe that has entered into an agreement with the Secretary for the management and/or improvement of trust resources shall be eligible for inclusion as a participating tribe in the Project. Each tribe must first submit a formal request to the Secretary to be included in the demonstration project.
(2) The Secretary shall negotiate and enter into agreements with tribes to implement the purposes of this section.
(3). A participating tribe may withdraw from the project at any time.
(d). STANDARD
TRUST MANAGEMENT PRINCIPLES
(1). The standards are formally approved by the tribe in a manner consistent with the tribe’s constitution or other governing law of the tribe.
(2). The standards are established in a manner that allows the tribe and the Secretary to readily compute the amount of revenues that are expected to be received from each trust transaction(s).
(3). The standards must describe in measurable and/or quantifiable terms the expected goals and/or intended results from application of the standards.
(4) The standards provide methods for resolving disputes between tribes, individual Indians and the Federal Government.
(5). The standards include a process whereby the Tribe and the Secretary can conduct mutually acceptable annual evaluations of the management of trust resources.
(e). JOINT
EVALUATION CRITERIA
(f). GRIEVANCE
The American Indian Trust Fund Management Reform Act is amended by adding at the end of the Act a new Title IV, as follows:
(a)APPOINTMENT; DUTIES; QUALIFICATIONS; TERMINATION
OF DUTIES - Within thirty days after the date of enactment of this Act, the
Director of the Federal Mediation and Conciliation Service shall appoint a
Mediator hereinafter referred to as the “Mediator”) who shall assist in
negotiations for the settlement of the rights and interests of the parties in
the case of Cobell v. Norton, Civ No. 96-1285 (
(b) NATURE OF PROCEEDINGS - The proceedings in which the Mediator shall be acting shall be those in the Cobell case now pending in the United States District Court for the District of Washington, D.C. (hereinafter referred to as “the District Court”).
(c) ASSISTANCE FOR MEDIATOR - The Mediator is authorized to request from any department, agency, or independent instrumentality of the Federal Government any information, personnel, service, or materials he deems necessary to carry out his responsibilities under the provisions of this Title Each such department, agency, or instrumentality is authorized to cooperate with the Mediator and to comply with such requests to the extent permitted by law, on a reimbursable or nonreimbursable basis.
(d) STAFF ASSISTANTS
(a) APPOINTMENT; TIME; MEMBERSHIP; NATURE OF AUTHORITY - Within thirty days after the appointment of the mediator by the Director of the Federal Mediation and Conciliation Service, the mediator shall communicate in writing with the parties directing them to appoint a negotiating team to represent each party. Each negotiating team shall be composed of not more than five members. Each party shall promptly fill any vacancies which may occur on its negotiating team. Notwithstanding any other provision of law, each negotiating team, when appointed, shall have full authority to bind its principals with respect to any matter concerning the Cobell litigation.
(b) FAILURE TO SELECT
(c) FIRST NEGOTIATING SESSION; TIME
(d) FAILURE TO ATTEND TWO CONSECUTIVE SESSIONS OR BARGAIN IN GOOD FAITH - In the event either negotiating team fails to attend two consecutive sessions or, in the opinion of the Mediator, either negotiating team fails to bargain in good faith or an impasse is reached, the provisions of section 404 of this title shall become effective.
(e) DISAGREEMENTS WITHIN
(a)
(b) PARTIAL AGREEMENT - If, within the one hundred and eighty-day period referred to in subsection (a) of this section, a partial agreement has been reached between the parties and they wish such partial agreement to go into effect, they shall follow the procedure set forth in subsection (a) of this section. The partial agreement shall then be considered by the Mediator in preparing his report, and the District Court in making a final adjudication, pursuant to section 404 of this title.
(c) CONSISTENCY WITH EXISTING LAW - For the purpose
of this section, the negotiating teams may make any provision in the agreement
or partial agreement not inconsistent with existing law. No such agreement or any provision in it
shall result in a taking by the
Sec. 9. RESOLUTION OF TRIBAL CLAIMS
There shall be a
process for resolving tribal claims against the
Sec. 10. FRACTIONATED HEIRSHIPS
Enacted tribal laws governing heirship and probate, shall be the prevailing law governing such issues. [detailed language needed].
Sec. 11. INDEPENDENT LEGAL COUNSEL FOR TRUST ISSUES
The Deputy Secretary shall have independent legal counsel to resolve conflicts involving trust matters.
The Secretary of the Interior, in consultation with interested Indian tribes, shall promulgate such regulations as are necessary to carry out this Act and amendments made by this Act.
Nothing in this Act diminishes or otherwise impairs the:
(A) trust responsibility of the
(B) The rights pursuant to the Indian Self-Determination Education and Assistance Act, 25 U.S.C. Sec. 450 et seq.. All agreements entered into pursuant to such law shall remain in full force and effect.