article: SECTION 1. SHORT TITLE. This Act may be cited as the ``Indian Trust Asset and Trust Fund Management and Reform Act of 2002''. SEC. 2. DEPUTY SECRETARY FOR TRUST MANAGEMENT AND REFORM. (a) Definitions.--Section 2 of the American Indian Trust Fund Management Reform Act of 1994 (25 U.S.C. 4001) is amended-- (1) in paragraph (1), by striking ``(1) The term'' and inserting the following: ``(8) Special trustee.--The term''; (2) in paragraph (2), by striking ``(2) The term'' and inserting the following: ``(4) Indian tribe.--The term''; (3) in paragraph (3), by striking ``(3) The term'' and inserting the following: ``(7) Secretary.--The term''; (4) in paragraph (4), by striking ``(4) The term'' and inserting the following: ``(5) Office.--The term''; (5) in paragraph (5), by striking ``(5) The term'' and inserting the following: ``(1) Bureau.--The term''; (6) in paragraph (6), by striking ``(6) The term'' and inserting the following: ``(2) Department.--The term''; (7) by adding at the end the following: ``(3) Deputy secretary.--The term `Deputy Secretary' means the Deputy Secretary for Trust Management and Reform appointed under section 307(a)(2). ``(6) Reform office.--The term `Reform Office' means the Office of Trust Reform Implementation and Oversight established by section 307(e).''; (8) by moving paragraphs (1) through (8) (as redesignated by this subsection) so as to appear in numerical order; and (9) by adding at the end the following: ``(9) Trust assets.--The term `trust assets' means all tangible property including land, minerals, coal, oil and gas, forest resources, agricultural resources, water and water sources, and fish and wildlife held by the Secretary for the benefit of an Indian tribe or an individual member of an Indian tribe pursuant to Federal law. ``(10) Trust funds.--The term `trust funds' means all funds held by the Secretary for the benefit of an Indian tribe or and individual member of an Indian tribe pursuant to Federal law.''. (b) Deputy Secretary for Trust Management and Reform.--Title III of the American Indian Trust Fund Management Reform Act of 1994 (25 U.S.C. 4041 et seq.) is amended by adding at the end the following: ``SEC. 307. DEPUTY SECRETARY FOR TRUST MANAGEMENT AND REFORM. ``(a) Establishment.-- ``(1) In general.--There is established within the Department the position of Deputy Secretary for Trust Management and Reform. ``(2) Appointment and removal.-- ``(A) Appointment.--The Deputy Secretary shall be appointed by the President, by and with the advice and consent of the Senate. ``(B) Term.--The Deputy Secretary shall be appointed for a term of 6 years. ``(C) Removal.--The Deputy Secretary may be removed only for good cause. ``(3) Administrative authority.--The Deputy Secretary shall report directly to the Secretary. ``(4) Compensation.--The Deputy Secretary shall be paid at a rate determined by the Secretary to be appropriate for the position, but not less than the rate of basic pay prescribed for Level II of the Executive Schedule under section 5313 of title 5, United States Code. ``(b) Duties.--The Deputy Secretary shall-- ``(1) oversee all trust fund and trust asset matters of the Department, including-- ``(A) administration and management of the Reform Office; and ``(B) financial and human resource matters of the Reform Office; and ``(2) 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. ``(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 tribal policy as the Deputy Secretary determines is necessary to carry out this section. ``(d) Effect on Duties of Other Officials.-- ``(1) In general.--Except as provided in paragraph (2), nothing in this section shall be construed to diminish any responsibility or duty of the Assistant Secretary of the Interior for Indian Affairs or the Special Trustee relating to any duty of the Assistant Secretary or Special Trustee established under this Act or any other provision of law. ``(2) Trust asset and trust fund management and reform.-- Notwithstanding any other provision of law, the Deputy Secretary shall have overall management and oversight authority on matters of the Department relating to trust asset and trust fund management and reform. ``(e) Office of Trust Reform Implementation and Oversight.-- ``(1) Establishment.--There is established within the Office of the Secretary the Office of Trust Reform Implementation and Oversight. ``(2) Reform office head.--The Reform Office shall be headed by the Deputy Secretary. ``(3) Duties.--The Reform Office shall-- ``(A) supervise and direct the day-to-day activities of the Assistant Secretary of the Interior for Indian Affairs, the Special Trustee, the Director of the Bureau of Land Management, and the Director of the Minerals Management Service, to the extent they 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 United States for the benefit of Indian tribes and individual members of Indian tribes; ``(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 monthly statements of accounts are provided to all trust fund account holders; ``(F) ensure that all trust fund accounts are audited at least annually, and more frequently as determined to be necessary by the Deputy Secretary; ``(G) ensure that the Assistant Secretary of the Interior for Indian Affairs, the Special Trustee, the Director of the Bureau of Land Management, 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; ``(H) 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, the greatest return on those funds and assets for the trust fund account holders; and ``(I) enter into contracts and compacts under section 102 of the Indian Self-Determination Act (25 U.S.C. 450f) or section 403 of the Indian Self Determination and Education Assistance Act (25 U.S.C. 458cc) to provide for the management of trust assets and trust funds by Indian tribes pursuant to a Trust Fund and Trust Asset Management and Monitoring Plan developed under section 202 of this Act. ``(f) Authorization of Appropriations.--There are authorized to be appropriated such sums as are necessary to carry out this section.''. (c) Advisory Board.-- (1) In general.--Section 306 of the American Indian Trust Fund Management Reform Act of 1994 (25 U.S.C. 4046) is amended to read as follows: ``SEC. 306. ADVISORY BOARD. ``(a) Establishment and Membership.--Notwithstanding any other provision of law, the Deputy Secretary described in section 307 shall establish an advisory board to provide advice on all matters within the jurisdiction of the Office of Trust Reform. The advisory board shall consist of 9 members, appointed by the Deputy Secretary after consultation with Indian tribes and appropriate Indian organizations, of which-- ``(1) 5 members shall represent trust fund account holders, including both tribal and Individual Indian Money accounts; ``(2) 2 members shall have practical experience in trust fund and financial management; ``(3) 1 member shall have practical experience in fiduciary investment management; and ``(4) 1 member, from academia, shall have knowledge of general management of large organizations. ``(b) Term.--Each member shall serve a term of 2 years. ``(c) FACA.--The advisory board shall not be subject to the Federal Advisory Committee Act.''. (2) Previous advisory board.--The advisory board authorized under section 306 of the American Indian Trust Fund Management Reform Act of 1994 (25 U.S.C. 4046) as in effect on the day before the date of enactment of this Act shall terminate on the date of enactment of this Act. (d) Conforming Amendments.-- (1) Section 302 of the American Indian Trust Fund Management Reform Act of 1994 (25 U.S.C. 4042) is amended-- (A) in the second sentence of subsection (a), by striking ``who shall'' and inserting ``who, except as provided in subsection (b)(3), shall''; and (B) in subsection (b), by adding at the end the following: ``(3) Trust fund management.--The Special Trustee shall report directly to the Deputy Secretary with respect to matters relating to trust fund management and reform.''. (2) Section 303 of the American Indian Trust Fund Management Reform Act of 1994 (25 U.S.C. 4043) is amended-- (A) by striking subsection (a); (B) in subsection (b)(1), by striking ``The Special Trustee'' and inserting ``Except as provided in section 307(d), the Special Trustee''; (C) in subsection (c)(5)(A), by striking ``or which is charged with any responsibility under the comprehensive strategic plan prepared under subsection (a) of this section,''; (D) by striking subsection (f); and (E) by redesignating subsections (b) through (e) as subsections (a) through (d), respectively. SEC. 3. INDIAN PARTICIPATION IN TRUST FUND ACTIVITIES. Title II of the American Indian Trust Fund Management Reform Act of 1994 (25 U.S.C. 4021 et seq.) is amended-- (1) by striking sections 202 and 203; and (2) by inserting after section 201 the following: ``SEC. 202. PARTICIPATION IN TRUST FUND AND TRUST ASSET MANAGEMENT ACTIVITIES BY INDIAN TRIBES. ``(a) Planning Program.--To meet the purposes of this title, a 10- year Indian Trust Fund and Trust Asset Management and Monitoring Plan (in this section referred to as the `Plan') shall be developed and implemented as follows: ``(1) Pursuant to a self-determination contract or compact under section 102 of the Indian Self-Determination Act (25 U.S.C. 450f) or section 403 of the Indian Self Determination and Education Assistance Act (25 U.S.C. 458cc), an Indian tribe may develop or implement a Plan. Subject to the provisions of paragraphs (3) and (4), the tribe shall have broad discretion in designing and carrying out the planning process. ``(2) To include in a Plan particular trust funds or assets held by multiple individuals, an Indian tribe shall obtain the approval of a majority of the individuals who hold an interest in any such trust funds or assets. ``(3) The Plan shall be submitted to the Secretary for approval pursuant to the Indian Self-Determination Act (25 U.S.C. 450f et seq.). ``(4) If a tribe chooses not to develop or implement a Plan, the Secretary shall develop or implement, as appropriate, a Plan in close consultation with the affected tribe. ``(5) Whether developed directly by the tribe or by the Secretary, the Plan shall-- ``(A) determine the amount and source of funds held in trust; ``(B) identify and prepare an inventory of all trust assets; ``(C) identify specific tribal goals and objectives; ``(D) establish management objectives for the funds and assets held in trust; ``(E) define critical values of the Indian tribe and its members and provide identified management objectives; ``(F) identify actions to be taken to reach established objectives; ``(G) use existing survey documents, reports and other research from Federal agencies, tribal community colleges, and land grant universities; and ``(H) be completed within 3 years of the initiation of activity to establish the Plan. ``(b) Management and Administration.--Plans developed and approved under subsection (a) shall govern the management and administration of funds and assets held in trust by the Bureau and the Indian tribal government. ``(c) No Termination Requirement.--Indian tribes implementing an approved Plan shall not be required to terminate the trust relationship in order to implement such Plan. ``(d) Plan Does Not Terminate Trust.--Developing or implementing a Plan shall not be construed or deemed to constitute a termination of the trust status of the assets or funds that are included in, or subject to, the Plan. ``(e) Liability.--An Indian tribe managing and administering trust funds and trust assets in a manner that is consistent with a Plan shall not be liable for waste or loss of an asset or funds that are included in such Plan. ``(f) Indian Participation in Management Activities.-- ``(1) Tribal recognition.--The Secretary shall conduct all management activities of funds and assets held in trust in accordance with goals and objectives set forth in a Plan approved pursuant to and in accordance with all tribal laws and ordinances, except in specific instances where such compliance would be contrary to the trust responsibility of the United States. ``(2) Tribal laws.-- ``(A) In general.--Unless otherwise prohibited by Federal law, the Secretary shall comply with tribal law pertaining to the management of funds and assets held in trust. ``(B) Duties.--The Secretary shall-- ``(i) provide assistance in the enforcement of tribal laws described in subparagraph (A); ``(ii) provide notice of such tribal laws to persons or entities dealing with tribal funds and assets held in trust; and ``(iii) upon the request of an Indian tribe, require appropriate Federal officials to appear in tribal forums. ``(3) Waiver of regulations.--In any case in which a regulation or administrative policy of the Department of the Interior conflicts with the objectives of the Plan, or with a tribal law, the Secretary may waive the application of such regulation or administrative policy unless such waiver would constitute a violation of a Federal statute or judicial decision or would conflict with the Secretary's trust responsibility under Federal law. ``(4) Sovereign immunity.--This section does not constitute a waiver of the sovereign immunity of the United States, nor does it authorize tribal justice systems to review actions of the Secretary. ``(5) Trust responsibility.--Nothing in this section shall be construed to diminish or expand the trust responsibility of the United States toward Indian funds and assets held in trust, or any legal obligation or remedy resulting from such funds and assets. ``(g) Report.-- ``(1) In general.--Not later than 180 days after the enactment of this section, and annually thereafter, the Secretary shall submit a report to the Committee on Indian Affairs of the Senate and the Committee on Resources of the House of Representatives. ``(2) Contents.--The report required under paragraph (1) shall detail the following: ``(A) The efforts of the Department to implement this section. ``(B) The nature and extent of consultation between the Department, Tribes, and individual Indians with respect to implementation of this section. ``(C) Any recommendations of the Department for further changes to this Act, accompanied by a record of consultation with Tribes and individual Indians regarding such recommendations.''. SEC. 4. REGULATIONS. (a) In General.--Not later than 1 year after the date of enactment of this Act, the Secretary of the Interior shall promulgate regulations to carry out the amendments made by this Act. (b) Active Participation.--All regulations promulgated in accordance with subsection (a) shall be developed with the full and active participation of Indian tribes that have trust funds and assets held by the Secretary.
summary: Indian Trust Asset and Trust Fund Management and Reform Act of 2002 - Amends the American Indian Trust Fund Management Reform Act of 1994 to create the position of Deputy Secretary for Trust Management and Reform within the Department of the Interior to oversee all Indian trust fund and trust asset matters and to consult with Indian tribes and individual trust asset and trust fund account holders. Directs the Deputy Secretary to establish an advisory board on matters within the jurisdiction of the Office of Trust Reform.Establishes within the office of the Secretary the Office of Trust Reform Implementation and Oversight, headed by such Deputy Secretary, to supervise and direct day-to-day activities concerning such assets or funds, including providing accurate inventories, revenue postings, monthly statements, and annual audits.Requires the development and implementation of a ten-year Indian Trust Fund and Trust Asset Management and Monitoring Plan by either an Indian tribe or the Secretary (in close consultation with the tribe). Requires the Plan to: (1) determine the amount and source of trust funds; (2) inventory trust assets; and (3) identify tribal and management objectives along with the actions necessary to achieve them. States that the trust relationship and an approved Plan can coexist.Requires the Secretary to manage funds and assets in accordance with such plan and tribal laws, unless compliance would be contrary to the trust responsibility or otherwise prohibited by Federal law. Requires the active participation of Indian tribes in the promulgation of regulations concerning such funds and assets.