[106th Congress Public Law 260]
[From the U.S. Government Printing Office]


<DOC>
[DOCID: f:publ260.106]


[[Page 114 STAT. 711]]

Public Law 106-260
106th Congress

                                 An Act


 
 To amend the Indian Self-Determination and Education Assistance Act to 
  provide for further self-governance by Indian tribes, and for other 
            purposes. <<NOTE: Aug. 18, 2000 -  [H.R. 1167]>> 

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress <<NOTE: Tribal Self-Governance 
Amendments of 2000.>> assembled,

SECTION 1. <<NOTE: 25 USC 450 note.>> SHORT TITLE.

    This Act may be cited as the ``Tribal Self-Governance Amendments of 
2000''.

SEC. 2. <<NOTE: 25 USC 458aaa note.>> FINDINGS.

    Congress finds that--
            (1) the tribal right of self-government flows from the 
        inherent sovereignty of Indian tribes and nations;
            (2) the United States recognizes a special government-to-
        government relationship with Indian tribes, including the right 
        of the Indian tribes to self-governance, as reflected in the 
        Constitution, treaties, Federal statutes, and the course of 
        dealings of the United States with Indian tribes;
            (3) although progress has been made, the Federal 
        bureaucracy, with its centralized rules and regulations, has 
        eroded tribal self-governance and dominates tribal affairs;
            (4) the Tribal Self-Governance Demonstration Project, 
        established under title III of the Indian Self-Determination and 
        Education Assistance Act (25 U.S.C. 450f note) was designed to 
        improve and perpetuate the government-to-government relationship 
        between Indian tribes and the United States and to strengthen 
        tribal control over Federal funding and program management;
            (5) although the Federal Government has made considerable 
        strides in improving Indian health care, it has failed to fully 
        meet its trust responsibilities and to satisfy its obligations 
        to the Indian tribes under treaties and other laws; and
            (6) Congress has reviewed the results of the Tribal Self-
        Governance Demonstration Project and finds that transferring 
        full control and funding to tribal governments, upon tribal 
        request, over decision making for Federal programs, services, 
        functions, and activities (or portions thereof )--
                    (A) is an appropriate and effective means of 
                implementing the Federal policy of government-to-
                government relations with Indian tribes; and
                    (B) strengthens the Federal policy of Indian self-
                determination.

[[Page 114 STAT. 712]]

SEC. 3. <<NOTE: 25 USC 458aaa note.>> DECLARATION OF POLICY.

    It is the policy of Congress--
            (1) to permanently establish and implement tribal self-
        governance within the Department of Health and Human Services;
            (2) to call for full cooperation from the Department of 
        Health and Human Services and its constituent agencies in the 
        implementation of tribal self-governance--
                    (A) to enable the United States to maintain and 
                improve its unique and continuing relationship with, and 
                responsibility to, Indian tribes;
                    (B) to permit each Indian tribe to choose the extent 
                of its participation in self-governance in accordance 
                with the provisions of the Indian Self-Determination and 
                Education Assistance Act relating to the provision of 
                Federal services to Indian tribes;
                    (C) to ensure the continuation of the trust 
                responsibility of the United States to Indian tribes and 
                Indian individuals;
                    (D) to affirm and enable the United States to 
                fulfill its obligations to the Indian tribes under 
                treaties and other laws;
                    (E) to strengthen the government-to-government 
                relationship between the United States and Indian tribes 
                through direct and meaningful consultation with all 
                tribes;
                    (F) to permit an orderly transition from Federal 
                domination of programs and services to provide Indian 
                tribes with meaningful authority, control, funding, and 
                discretion to plan, conduct, redesign, and administer 
                programs, services, functions, and activities (or 
                portions thereof ) that meet the needs of the individual 
                tribal communities;
                    (G) to provide for a measurable parallel reduction 
                in the Federal bureaucracy as programs, services, 
                functions, and activities (or portion thereof ) are 
                assumed by Indian tribes;
                    (H) to encourage the Secretary to identify all 
                programs, services, functions, and activities (or 
                portions thereof ) of the Department of Health and Human 
                Services that may be managed by an Indian tribe under 
                this Act and to assist Indian tribes in assuming 
                responsibility for such programs, services, functions, 
                and activities (or portions thereof ); and
                    (I) to provide Indian tribes with the earliest 
                opportunity to administer programs, services, functions, 
                and activities (or portions thereof ) from throughout 
                the Department of Health and Human Services.

SEC. 4. TRIBAL SELF-GOVERNANCE.

    The Indian Self-Determination and Education Assistance Act (25 
U.S.C. 450 et seq.) is amended by adding at the end the following:

[[Page 114 STAT. 713]]

                    ``TITLE V--TRIBAL SELF-GOVERNANCE

``SEC. 501. <<NOTE: 25 USC 458aaa.>> DEFINITIONS.

    ``(a) In General.--In this title:
            ``(1) Construction project.--The term `construction 
        project'--
                    ``(A) means an organized noncontinuous undertaking 
                to complete a specific set of predetermined objectives 
                for the planning, environmental determination, design, 
                construction, repair, improvement, or expansion of 
                buildings or facilities, as described in a construction 
                project agreement; and
                    ``(B) does not include construction program 
                administration and activities described in paragraphs 
                (1) through (3) of section 4(m), that may otherwise be 
                included in a funding agreement under this title.
            ``(2) Construction project agreement.--The term 
        `construction project agreement' means a negotiated agreement 
        between the Secretary and an Indian tribe, that at a minimum--
                    ``(A) establishes project phase start and completion 
                dates;
                    ``(B) defines a specific scope of work and standards 
                by which it will be accomplished;
                    ``(C) identifies the responsibilities of the Indian 
                tribe and the Secretary;
                    ``(D) addresses environmental considerations;
                    ``(E) identifies the owner and operations and 
                maintenance entity of the proposed work;
                    ``(F) provides a budget;
                    ``(G) provides a payment process; and
                    ``(H) establishes the duration of the agreement 
                based on the time necessary to complete the specified 
                scope of work, which may be 1 or more years.
            ``(3) Gross mismanagement.--The term `gross mismanagement' 
        means a significant, clear, and convincing violation of a 
        compact, funding agreement, or regulatory, or statutory 
        requirements applicable to Federal funds transferred to an 
        Indian tribe by a compact or funding agreement that results in a 
        significant reduction of funds available for the programs, 
        services, functions, or activities (or portions thereof ) 
        assumed by an Indian tribe.
            ``(4) Inherent federal functions.--The term `inherent 
        Federal functions' means those Federal functions which cannot 
        legally be delegated to Indian tribes.
            ``(5) Inter-tribal consortium.--The term `inter-tribal 
        consortium' means a coalition of two more separate Indian tribes 
        that join together for the purpose of participating in self-
        governance, including tribal organizations.
            ``(6) Secretary.--The term `Secretary' means the Secretary 
        of Health and Human Services.
            ``(7) Self-governance.--The term `self-governance' means the 
        program of self-governance established under section 502.
            ``(8) Tribal share.--The term `tribal share' means an Indian 
        tribe's portion of all funds and resources that support

[[Page 114 STAT. 714]]

        secretarial programs, services, functions, and activities (or 
        portions thereof ) that are not required by the Secretary for 
        performance of inherent Federal functions.

    ``(b) Indian Tribe.--In any case in which an Indian tribe has 
authorized another Indian tribe, an inter-tribal consortium, or a tribal 
organization to plan for or carry out programs, services, functions, or 
activities (or portions thereof ) on its behalf under this title, the 
authorized Indian tribe, inter-tribal consortium, or tribal organization 
shall have the rights and responsibilities of the authorizing Indian 
tribe (except as otherwise provided in the authorizing resolution or in 
this title). In such event, the term `Indian tribe' as used in this 
title shall include such other authorized Indian tribe, inter-tribal 
consortium, or tribal organization.

``SEC. 502. <<NOTE: 25 USC 458aaa-1.>> ESTABLISHMENT.

    ``The Secretary shall establish and carry out a program within the 
Indian Health Service of the Department of Health and Human Services to 
be known as the `Tribal Self-Governance Program' in accordance with this 
title.

``SEC. 503. <<NOTE: 25 USC 458aaa-2.>> SELECTION OF PARTICIPATING INDIAN 
            TRIBES.

    ``(a) Continuing Participation.--Each Indian tribe that is 
participating in the Tribal Self-Governance Demonstration Project under 
title III on the date of the enactment of this title may elect to 
participate in self-governance under this title under existing authority 
as reflected in tribal resolution.
    ``(b) Additional Participants.--
            ``(1) In general.--In addition to those Indian tribes 
        participating in self-governance under subsection (a), each year 
        an additional 50 Indian tribes that meet the eligibility 
        criteria specified in subsection (c) shall be entitled to 
        participate in self-governance.
            ``(2) Treatment of certain indian tribes.--
                    ``(A) In general.--An Indian tribe that has 
                withdrawn from participation in an inter-tribal 
                consortium or tribal organization, in whole or in part, 
                shall be entitled to participate in self-governance 
                provided the Indian tribe meets the eligibility criteria 
                specified in subsection (c).
                    ``(B) Effect of withdrawal.--If an Indian tribe has 
                withdrawn from participation in an inter-tribal 
                consortium or tribal organization, that Indian tribe 
                shall be entitled to its tribal share of funds 
                supporting those programs, services, functions, and 
                activities (or portions thereof ) that the Indian tribe 
                will be carrying out under the compact and funding 
                agreement of the Indian tribe.
                    ``(C) Participation in self-governance.--In no event 
                shall the withdrawal of an Indian tribe from an inter-
                tribal consortium or tribal organization affect the 
                eligibility of the inter-tribal consortium or tribal 
                organization to participate in self-governance.

    ``(c) Applicant Pool.--
            ``(1) In general.--The qualified applicant pool for self-
        governance shall consist of each Indian tribe that--
                    ``(A) successfully completes the planning phase 
                described in subsection (d);
                    ``(B) has requested participation in self-governance 
                by resolution or other official action by the governing 
                body of each Indian tribe to be served; and

[[Page 114 STAT. 715]]

                    ``(C) has demonstrated, for 3 fiscal years, 
                financial stability and financial management capability.
            ``(2) Criteria for determining financial stability and 
        financial management capacity.--For purposes of this subsection, 
        evidence that, during the 3-year period referred to in paragraph 
        (1)(C), an Indian tribe had no uncorrected significant and 
        material audit exceptions in the required annual audit of the 
        Indian tribe's self-determination contracts or self-governance 
        funding agreements with any Federal agency shall be conclusive 
        evidence of the required stability and capability.

    ``(d) Planning Phase.--Each Indian tribe seeking participation in 
self-governance shall complete a planning phase. The planning phase 
shall be conducted to the satisfaction of the Indian tribe and shall 
include--
            ``(1) legal and budgetary research; and
            ``(2) internal tribal government planning and organizational 
        preparation relating to the administration of health care 
        programs.

    ``(e) Grants.--Subject to the availability of appropriations, any 
Indian tribe meeting the requirements of paragraph (1)(B) and (C) of 
subsection (c) shall be eligible for grants--
            ``(1) to plan for participation in self-governance; and
            ``(2) to negotiate the terms of participation by the Indian 
        tribe or tribal organization in self-governance, as set forth in 
        a compact and a funding agreement.

    ``(f ) Receipt of Grant Not Required.--Receipt of a grant under 
subsection (e) shall not be a requirement of participation in self-
governance.

``SEC. 504. <<NOTE: 25 USC 458aaa-3.>> COMPACTS.

    ``(a) Compact Required.--The Secretary shall negotiate and enter 
into a written compact with each Indian tribe participating in self-
governance in a manner consistent with the Federal Government's trust 
responsibility, treaty obligations, and the government-to-government 
relationship between Indian tribes and the United States.
    ``(b) Contents.--Each compact required under subsection (a) shall 
set forth the general terms of the government-to-government relationship 
between the Indian tribe and the Secretary, including such terms as the 
parties intend shall control year after year. Such compacts may only be 
amended by mutual agreement of the parties.
    ``(c) Existing Compacts.--An Indian tribe participating in the 
Tribal Self-Governance Demonstration Project under title III on the date 
of the enactment of this title shall have the option at any time after 
the date of the enactment of this title to--
            ``(1) retain the Tribal Self-Governance Demonstration 
        Project compact of that Indian tribe (in whole or in part) to 
        the extent that the provisions of that funding agreement are not 
        directly contrary to any express provision of this title; or
            ``(2) instead of retaining a compact or portion thereof 
        under paragraph (1), negotiate a new compact in a manner 
        consistent with the requirements of this title.

    ``(d) Term and Effective Date.--The effective date of a compact 
shall be the date of the approval and execution by the Indian tribe or 
another date agreed upon by the parties, and shall remain

[[Page 114 STAT. 716]]

in effect for so long as permitted by Federal law or until terminated by 
mutual written agreement, retrocession, or reassumption.

``SEC. 505. <<NOTE: 25 USC 458aaa-4.>> FUNDING AGREEMENTS.

    ``(a) Funding Agreement Required.--The Secretary shall negotiate and 
enter into a written funding agreement with each Indian tribe 
participating in self-governance in a manner consistent with the Federal 
Government's trust responsibility, treaty obligations, and the 
government-to-government relationship between Indian tribes and the 
United States.
    ``(b) Contents.--
            ``(1) In general.--Each funding agreement required under 
        subsection (a) shall, as determined by the Indian tribe, 
        authorize the Indian tribe to plan, conduct, consolidate, 
        administer, and receive full tribal share funding, including 
        tribal shares of discretionary Indian Health Service competitive 
        grants (excluding congressionally earmarked competitive grants), 
        for all programs, services, functions, and activities (or 
        portions thereof ), that are carried out for the benefit of 
        Indians because of their status as Indians without regard to the 
        agency or office of the Indian Health Service within which the 
        program, service, function, or activity (or portion thereof ) is 
        performed.
            ``(2) Inclusion of certain programs, services, functions, 
        and activities.--Such programs, services, functions, or 
        activities (or portions thereof ) include all programs, 
        services, functions, activities (or portions thereof ), 
        including grants (which may be added to a funding agreement 
        after an award of such grants), with respect to which Indian 
        tribes or Indians are primary or significant beneficiaries, 
        administered by the Department of Health and Human Services 
        through the Indian Health Service and all local, field, service 
        unit, area, regional, and central headquarters or national 
        office functions so administered under the authority of--
                    ``(A) the Act of November 2, 1921 (42 Stat. 208; 
                chapter 115; 25 U.S.C. 13);
                    ``(B) the Act of April 16, 1934 (48 Stat. 596; 
                chapter 147; 25 U.S.C. 452 et seq.);
                    ``(C) the Act of August 5, 1954 (68 Stat. 674; 
                chapter 658);
                    ``(D) the Indian Health Care Improvement Act (25 
                U.S.C. 1601 et seq.);
                    ``(E) the Indian Alcohol and Substance Abuse 
                Prevention and Treatment Act of 1986 (25 U.S.C. 2401 et 
                seq.);
                    ``(F) any other Act of Congress authorizing any 
                agency of the Department of Health and Human Services to 
                administer, carry out, or provide financial assistance 
                to such a program, service, function or activity (or 
                portions thereof ) described in this section that is 
                carried out for the benefit of Indians because of their 
                status as Indians; or
                    ``(G) any other Act of Congress authorizing such a 
                program, service, function, or activity (or portions 
                thereof ) carried out for the benefit of Indians under 
                which appropriations are made available to any agency 
                other than an agency within the Department of Health and 
                Human Services, in any case in which the Secretary 
                administers

[[Page 114 STAT. 717]]

                that program, service, function, or activity (or portion 
                thereof ).

    ``(c) Inclusion in Compact or Funding Agreement.--It shall not be a 
requirement that an Indian tribe or Indians be identified in the 
authorizing statute for a program or element of a program to be eligible 
for inclusion in a compact or funding agreement under this title.
    ``(d) Funding Agreement Terms.--Each funding agreement under this 
title shall set forth--
            ``(1) terms that generally identify the programs, services, 
        functions, and activities (or portions thereof ) to be performed 
        or administered; and
            ``(2) for the items identified in paragraph (1)--
                    ``(A) the general budget category assigned;
                    ``(B) the funds to be provided, including those 
                funds to be provided on a recurring basis;
                    ``(C) the time and method of transfer of the funds;
                    ``(D) the responsibilities of the Secretary; and
                    ``(E) any other provision with respect to which the 
                Indian tribe and the Secretary agree.

    ``(e) Subsequent Funding Agreements.--Absent notification from an 
Indian tribe that is withdrawing or retroceding the operation of one or 
more programs, services, functions, or activities (or portions thereof ) 
identified in a funding agreement, or unless otherwise agreed to by the 
parties, each funding agreement shall remain in full force and effect 
until a subsequent funding agreement is executed, and the terms of the 
subsequent funding agreement shall be retroactive to the end of the term 
of the preceding funding agreement.
    ``(f ) Existing Funding Agreements.--Each Indian tribe participating 
in the Tribal Self-Governance Demonstration Project established under 
title III on the date of the enactment of this title shall have the 
option at any time thereafter to--
            ``(1) retain the Tribal Self-Governance Demonstration 
        Project funding agreement of that Indian tribe (in whole or in 
        part) to the extent that the provisions of that funding 
        agreement are not directly contrary to any express provision of 
        this title; or
            ``(2) instead of retaining a funding agreement or portion 
        thereof under paragraph (1), negotiate a new funding agreement 
        in a manner consistent with the requirements of this title.

    ``(g) Stable Base Funding.--At the option of an Indian tribe, a 
funding agreement may provide for a stable base budget specifying the 
recurring funds (including, for purposes of this provision, funds 
available under section 106(a)) to be transferred to such Indian tribe, 
for such period as may be specified in the funding agreement, subject to 
annual adjustment only to reflect changes in congressional 
appropriations by sub-sub activity excluding earmarks.

``SEC. 506. <<NOTE: 25 USC 458aaa-5.>> GENERAL PROVISIONS.

    ``(a) Applicability.--The provisions of this section shall apply to 
compacts and funding agreements negotiated under this title and an 
Indian tribe may, at its option, include provisions that reflect such 
requirements in a compact or funding agreement.
    ``(b) Conflicts of Interest.--Indian tribes participating in self-
governance under this title shall ensure that internal measures

[[Page 114 STAT. 718]]

are in place to address conflicts of interest in the administration of 
self-governance programs, services, functions, or activities (or 
portions thereof ).
    ``(c) Audits.--
            ``(1) <<NOTE: Applicability.>> Single agency audit act.--The 
        provisions of chapter 75 of title 31, United States Code, 
        requiring a single agency audit report shall apply to funding 
        agreements under this title.
            ``(2) Cost principles.--An Indian tribe shall apply cost 
        principles under the applicable Office of Management and Budget 
        circular, except as modified by section 106 other provisions of 
        law, or by any exemptions to applicable Office of Management and 
        Budget circulars subsequently granted by the Office of 
        Management and Budget. No other audit or accounting standards 
        shall be required by the Secretary. Any claim by the Federal 
        Government against the Indian tribe relating to funds received 
        under a funding agreement based on any audit under this 
        subsection shall be subject to the provisions of section 106(f 
        ).

    ``(d) Records.--
            ``(1) In general.--Unless an Indian tribe specifies 
        otherwise in the compact or funding agreement, records of the 
        Indian tribe shall not be considered Federal records for 
        purposes of chapter 5 of title 5, United States Code.
            ``(2) <<NOTE: Notice.>> Recordkeeping system.--The Indian 
        tribe shall maintain a recordkeeping system, and, after 30 days 
        advance notice, provide the Secretary with reasonable access to 
        such records to enable the Department of Health and Human 
        Services to meet its minimum legal recordkeeping system 
        requirements under sections 3101 through 3106 of title 44, 
        United States Code.

    ``(e) Redesign and Consolidation.--An Indian tribe may redesign or 
consolidate programs, services, functions, and activities (or portions 
thereof ) included in a funding agreement under section 505 and 
reallocate or redirect funds for such programs, services, functions, and 
activities (or portions thereof ) in any manner which the Indian tribe 
deems to be in the best interest of the health and welfare of the Indian 
community being served, only if the redesign or consolidation does not 
have the effect of denying eligibility for services to population groups 
otherwise eligible to be served under applicable Federal law.
    ``(f ) Retrocession.--An Indian tribe may retrocede, fully or 
partially, to the Secretary programs, services, functions, or activities 
(or portions thereof ) included in the compact or funding agreement. 
Unless the Indian tribe rescinds the request for retrocession, such 
retrocession will become effective within the timeframe specified by the 
parties in the compact or funding agreement. In the absence of such a 
specification, such retrocession shall become effective on--
            ``(1) the earlier of--
                    ``(A) 1 year after the date of submission of such 
                request; or
                    ``(B) the date on which the funding agreement 
                expires; or
            ``(2) such date as may be mutually agreed upon by the 
        Secretary and the Indian tribe.

    ``(g) Withdrawal.--
            ``(1) Process.--

[[Page 114 STAT. 719]]

                    ``(A) In general.--An Indian tribe may fully or 
                partially withdraw from a participating inter-tribal 
                consortium or tribal organization its share of any 
                program, function, service, or activity (or portions 
                thereof ) included in a compact or funding agreement.
                    ``(B) Effective date.--The withdrawal referred to in 
                subparagraph (A) shall become effective within the 
                timeframe specified in the resolution which authorizes 
                transfer to the participating tribal organization or 
                inter-tribal consortium. In the absence of a specific 
                timeframe set forth in the resolution, such withdrawal 
                shall become effective on--
                          ``(i) the earlier of--
                                    ``(I) 1 year after the date of 
                                submission of such request; or
                                    ``(II) the date on which the funding 
                                agreement expires; or
                          ``(ii) such date as may be mutually agreed 
                      upon by the Secretary, the withdrawing Indian 
                      tribe, and the participating tribal organization 
                      or inter-tribal consortium that has signed the 
                      compact or funding agreement on behalf of the 
                      withdrawing Indian tribe, inter-tribal consortium, 
                      or tribal organization.
            ``(2) Distribution of funds.--When an Indian tribe or tribal 
        organization eligible to enter into a self-determination 
        contract under title I or a compact or funding agreement under 
        this title fully or partially withdraws from a participating 
        inter-tribal consortium or tribal organization--
                    ``(A) the withdrawing Indian tribe or tribal 
                organization shall be entitled to its tribal share of 
                funds supporting those programs, services, functions, or 
                activities (or portions thereof ) that the Indian tribe 
                will be carrying out under its own self-determination 
                contract or compact and funding agreement (calculated on 
                the same basis as the funds were initially allocated in 
                the funding agreement of the inter-tribal consortium or 
                tribal organization); and
                    ``(B) the funds referred to in subparagraph (A) 
                shall be transferred from the funding agreement of the 
                inter-tribal consortium or tribal organization, on the 
                condition that the provisions of sections 102 and 
                105(i), as appropriate, shall apply to that withdrawing 
                Indian tribe.
            ``(3) Regaining mature contract status.--If an Indian tribe 
        elects to operate all or some programs, services, functions, or 
        activities (or portions thereof ) carried out under a compact or 
        funding agreement under this title through a self-determination 
        contract under title I, at the option of the Indian tribe, the 
        resulting self-determination contract shall be a mature self-
        determination contract.

    ``(h) Nonduplication.--For the period for which, and to the extent 
to which, funding is provided under this title or under the compact or 
funding agreement, the Indian tribe shall not be entitled to contract 
with the Secretary for such funds under section 102, except that such 
Indian tribe shall be eligible for new programs on the same basis as 
other Indian tribes.

``SEC. 507. <<NOTE: 25 USC 458aaa-6.>> PROVISIONS RELATING TO THE 
            SECRETARY.

    ``(a) Mandatory Provisions.--

[[Page 114 STAT. 720]]

            ``(1) Health status reports.--Compacts or funding agreements 
        negotiated between the Secretary and an Indian tribe shall 
        include a provision that requires the Indian tribe to report on 
        health status and service delivery--
                    ``(A) to the extent such data is not otherwise 
                available to the Secretary and specific funds for this 
                purpose are provided by the Secretary under the funding 
                agreement; and
                    ``(B) if such reporting shall impose minimal burdens 
                on the participating Indian tribe and such requirements 
                are promulgated under section 517.
            ``(2) Reassumption.--
                    ``(A) In general.--Compacts or funding agreements 
                negotiated between the Secretary and an Indian tribe 
                shall include a provision authorizing the Secretary to 
                reassume operation of a program, service, function, or 
                activity (or portions thereof ) and associated funding 
                if there is a specific finding relative to that program, 
                service, function, or activity (or portion thereof ) 
                of--
                          ``(i) imminent endangerment of the public 
                      health caused by an act or omission of the Indian 
                      tribe, and the imminent endangerment arises out of 
                      a failure to carry out the compact or funding 
                      agreement; or
                          ``(ii) gross mismanagement with respect to 
                      funds transferred to a tribe by a compact or 
                      funding agreement, as determined by the Secretary 
                      in consultation with the Inspector General, as 
                      appropriate.
                    ``(B) Prohibition.--The Secretary shall not reassume 
                operation of a program, service, function, or activity 
                (or portions thereof ) unless--
                          ``(i) the Secretary has first provided written 
                      notice and a hearing on the record to the Indian 
                      tribe; and
                          ``(ii) the Indian tribe has not taken 
                      corrective action to remedy the imminent 
                      endangerment to public health or gross 
                      mismanagement.
                    ``(C) Exception.--
                          ``(i) In general.--Notwithstanding 
                      subparagraph (B), the Secretary may, upon written 
                      notification to the Indian tribe, immediately 
                      reassume operation of a program, service, 
                      function, or activity (or portion thereof ) if--
                                    ``(I) the Secretary makes a finding 
                                of imminent substantial and irreparable 
                                endangerment of the public health caused 
                                by an act or omission of the Indian 
                                tribe; and
                                    ``(II) the endangerment arises out 
                                of a failure to carry out the compact or 
                                funding agreement.
                          ``(ii) <<NOTE: Deadline.>> Reassumption.--If 
                      the Secretary reassumes operation of a program, 
                      service, function, or activity (or portion thereof 
                      ) under this subparagraph, the Secretary shall 
                      provide the Indian tribe with a hearing on the 
                      record not later than 10 days after such 
                      reassumption.
                    ``(D) Hearings.--In any hearing or appeal involving 
                a decision to reassume operation of a program, service, 
                function, or activity (or portion thereof ), the 
                Secretary shall have the burden of proof of 
                demonstrating by clear and

[[Page 114 STAT. 721]]

                convincing evidence the validity of the grounds for the 
                reassumption.

    ``(b) Final Offer.--In the event the Secretary and a participating 
Indian tribe are unable to agree, in whole or in part, on the terms of a 
compact or funding agreement (including funding levels), the Indian 
tribe may submit a final offer to the Secretary. Not more than 45 
days <<NOTE: Deadline.>> after such submission, or within a longer time 
agreed upon by the Indian tribe, the Secretary shall review and make a 
determination with respect to such offer. In the absence of a timely 
rejection of the offer, in whole or in part, made in compliance with 
subsection (c), the offer shall be deemed agreed to by the Secretary.

    ``(c) Rejection of Final Offers.--
            ``(1) In general.--If the Secretary rejects an offer made 
        under subsection (b) (or one or more provisions or funding 
        levels in such offer), the Secretary shall provide--
                    ``(A) a timely written notification to the Indian 
                tribe that contains a specific finding that clearly 
                demonstrates, or that is supported by a controlling 
                legal authority, that--
                          ``(i) the amount of funds proposed in the 
                      final offer exceeds the applicable funding level 
                      to which the Indian tribe is entitled under this 
                      title;
                          ``(ii) the program, function, service, or 
                      activity (or portion thereof ) that is the subject 
                      of the final offer is an inherent Federal function 
                      that cannot legally be delegated to an Indian 
                      tribe;
                          ``(iii) the Indian tribe cannot carry out the 
                      program, function, service, or activity (or 
                      portion thereof ) in a manner that would not 
                      result in significant danger or risk to the public 
                      health; or
                          ``(iv) the Indian tribe is not eligible to 
                      participate in self-governance under section 503;
                    ``(B) technical assistance to overcome the 
                objections stated in the notification required by 
                subparagraph (A);
                    ``(C) the Indian tribe with a hearing on the record 
                with the right to engage in full discovery relevant to 
                any issue raised in the matter and the opportunity for 
                appeal on the objections raised, except that the Indian 
                tribe may, in lieu of filing such appeal, directly 
                proceed to initiate an action in a Federal district 
                court pursuant to section 110(a); and
                    ``(D) the Indian tribe with the option of entering 
                into the severable portions of a final proposed compact 
                or funding agreement, or provision thereof, (including a 
                lesser funding amount, if any), that the Secretary did 
                not reject, subject to any additional alterations 
                necessary to conform the compact or funding agreement to 
                the severed provisions.
            ``(2) Effect of exercising certain option.--If an Indian 
        tribe exercises the option specified in paragraph (1)(D), that 
        Indian tribe shall retain the right to appeal the Secretary's 
        rejection under this section, and subparagraphs (A), (B), and 
        (C) of that paragraph shall only apply to that portion of the 
        proposed final compact, funding agreement, or provision thereof 
        that was rejected by the Secretary.

    ``(d) Burden of Proof.--With respect to any hearing or appeal or 
civil action conducted pursuant to this section, the Secretary

[[Page 114 STAT. 722]]

shall have the burden of demonstrating by clear and convincing evidence 
the validity of the grounds for rejecting the offer (or a provision 
thereof ) made under subsection (b).
    ``(e) Good Faith.--In the negotiation of compacts and funding 
agreements the Secretary shall at all times negotiate in good faith to 
maximize implementation of the self-governance policy. The Secretary 
shall carry out this title in a manner that maximizes the policy of 
tribal self-governance, in a manner consistent with the purposes 
specified in section 3 of the Tribal Self-Governance Amendments of 2000.
    ``(f ) Savings.--To the extent that programs, functions, services, 
or activities (or portions thereof ) carried out by Indian tribes under 
this title reduce the administrative or other responsibilities of the 
Secretary with respect to the operation of Indian programs and result in 
savings that have not otherwise been included in the amount of tribal 
shares and other funds determined under section 508(c), the Secretary 
shall make such savings available to the Indian tribes, inter-tribal 
consortia, or tribal organizations for the provision of additional 
services to program beneficiaries in a manner equitable to directly 
served, contracted, and compacted programs.
    ``(g) Trust Responsibility.--The Secretary is prohibited from 
waiving, modifying, or diminishing in any way the trust responsibility 
of the United States with respect to Indian tribes and individual 
Indians that exists under treaties, Executive orders, other laws, or 
court decisions.
    ``(h) Decisionmaker.--A decision that constitutes final agency 
action and relates to an appeal within the Department of Health and 
Human Services conducted under subsection (c) shall be made either--
            ``(1) by an official of the Department who holds a position 
        at a higher organizational level within the Department than the 
        level of the departmental agency in which the decision that is 
        the subject of the appeal was made; or
            ``(2) by an administrative judge.

``SEC. 508. <<NOTE: 25 USC 458aaa-7.>> TRANSFER OF FUNDS.

    ``(a) In General.--Pursuant to the terms of any compact or funding 
agreement entered into under this title, the Secretary shall transfer to 
the Indian tribe all funds provided for in the funding agreement, 
pursuant to subsection (c), and provide funding for periods covered by 
joint resolution adopted by Congress making continuing appropriations, 
to the extent permitted by such resolutions. In any instance where a 
funding agreement requires an annual transfer of funding to be made at 
the beginning of a fiscal year, or requires semiannual or other periodic 
transfers of funding to be made commencing at the beginning of a fiscal 
year, the first such transfer shall be made not later than 10 days after 
the apportionment of such funds by the Office of Management and Budget 
to the Department, unless the funding agreement provides otherwise.
    ``(b) Multiyear Funding.--The Secretary is authorized to employ, 
upon tribal request, multiyear funding agreements. References in this 
title to funding agreements shall include such multiyear funding 
agreements.
    ``(c) Amount of Funding.--The Secretary shall provide funds under a 
funding agreement under this title in an amount equal to the amount that 
the Indian tribe would have been entitled

[[Page 114 STAT. 723]]

to receive under self-determination contracts under this Act, including 
amounts for direct program costs specified under section 106(a)(1) and 
amounts for contract support costs specified under section 106(a) (2), 
(3), (5), and (6), including any funds that are specifically or 
functionally related to the provision by the Secretary of services and 
benefits to the Indian tribe or its members, all without regard to the 
organizational level within the Department where such functions are 
carried out.
    ``(d) Prohibitions.--
            ``(1) In general.--Except as provided in paragraph (2), the 
        Secretary is expressly prohibited from--
                    ``(A) failing or refusing to transfer to an Indian 
                tribe its full share of any central, headquarters, 
                regional, area, or service unit office or other funds 
                due under this Act, except as required by Federal law;
                    ``(B) withholding portions of such funds for 
                transfer over a period of years; and
                    ``(C) reducing the amount of funds required under 
                this Act--
                          ``(i) to make funding available for self-
                      governance monitoring or administration by the 
                      Secretary;
                          ``(ii) in subsequent years, except pursuant 
                      to--
                                    ``(I) a reduction in appropriations 
                                from the previous fiscal year for the 
                                program or function to be included in a 
                                compact or funding agreement;
                                    ``(II) a congressional directive in 
                                legislation or accompanying report;
                                    ``(III) a tribal authorization;
                                    ``(IV) a change in the amount of 
                                pass-through funds subject to the terms 
                                of the funding agreement; or
                                    ``(V) completion of a project, 
                                activity, or program for which such 
                                funds were provided;
                          ``(iii) to pay for Federal functions, 
                      including Federal pay costs, Federal employee 
                      retirement benefits, automated data processing, 
                      technical assistance, and monitoring of activities 
                      under this Act; or
                          ``(iv) to pay for costs of Federal personnel 
                      displaced by self-determination contracts under 
                      this Act or self-governance;
            ``(2) Exception.--The funds described in paragraph (1)(C) 
        may be increased by the Secretary if necessary to carry out this 
        Act or as provided in section 105(c)(2).

    ``(e) Other Resources.--In the event an Indian tribe elects to carry 
out a compact or funding agreement with the use of Federal personnel, 
Federal supplies (including supplies available from Federal warehouse 
facilities), Federal supply sources (including lodging, airline 
transportation, and other means of transportation including the use of 
interagency motor pool vehicles) or other Federal resources (including 
supplies, services, and resources available to the Secretary under any 
procurement contracts in which the Department is eligible to 
participate), the Secretary shall acquire and transfer such personnel, 
supplies, or resources to the Indian tribe.
    ``(f ) Reimbursement to Indian Health Service.--With respect to 
functions transferred by the Indian Health Service to an Indian tribe, 
the Indian Health Service shall provide goods

[[Page 114 STAT. 724]]

and services to the Indian tribe, on a reimbursable basis, including 
payment in advance with subsequent adjustment. The reimbursements 
received from those goods and services, along with the funds received 
from the Indian tribe pursuant to this title, may be credited to the 
same or subsequent appropriation account which provided the funding, 
such amounts to remain available until expended.
    ``(g) <<NOTE: Applicability.>> Prompt Payment Act.--Chapter 39 of 
title 31, United States Code, shall apply to the transfer of funds due 
under a compact or funding agreement authorized under this title.

    ``(h) Interest or Other Income on Transfers.--An Indian tribe is 
entitled to retain interest earned on any funds paid under a compact or 
funding agreement to carry out governmental or health purposes and such 
interest shall not diminish the amount of funds the Indian tribe is 
authorized to receive under its funding agreement in the year the 
interest is earned or in any subsequent fiscal year. Funds transferred 
under this title shall be managed using the prudent investment standard.
    ``(i) Carryover of Funds.--All funds paid to an Indian tribe in 
accordance with a compact or funding agreement shall remain available 
until expended. In the event that an Indian tribe elects to carry over 
funding from 1 year to the next, such carryover shall not diminish the 
amount of funds the Indian tribe is authorized to receive under its 
funding agreement in that or any subsequent fiscal year.
    ``( j) Program Income.--All Medicare, Medicaid, or other program 
income earned by an Indian tribe shall be treated as supplemental 
funding to that negotiated in the funding agreement. The Indian tribe 
may retain all such income and expend such funds in the current year or 
in future years except to the extent that the Indian Health Care 
Improvement Act (25 U.S.C. 1601 et seq.) provides otherwise for Medicare 
and Medicaid receipts. Such funds shall not result in any offset or 
reduction in the amount of funds the Indian tribe is authorized to 
receive under its funding agreement in the year the program income is 
received or for any subsequent fiscal year.
    ``(k) Limitation of Costs.--An Indian tribe shall not be obligated 
to continue performance that requires an expenditure of funds in excess 
of the amount of funds transferred under a compact or funding agreement. 
If at any time the Indian tribe has reason to believe that the total 
amount provided for a specific activity in the compact or funding 
agreement is insufficient the Indian tribe shall provide reasonable 
notice of such insufficiency to the Secretary. If the Secretary does not 
increase the amount of funds transferred under the funding agreement, 
the Indian tribe may suspend performance of the activity until such time 
as additional funds are transferred.

``SEC. 509. <<NOTE: 25 USC 458aaa-8.>> CONSTRUCTION PROJECTS.

    ``(a) In General.--Indian tribes participating in tribal self-
governance may carry out construction projects under this title if they 
elect to assume all Federal responsibilities under the National 
Environmental Policy Act of 1969 (42 U.S.C. 4321 et seq.), the National 
Historic Preservation Act (16 U.S.C. 470 et seq.), and related 
provisions of law that would apply if the Secretary were to undertake a 
construction project, by adopting a resolution--

[[Page 114 STAT. 725]]

            ``(1) designating a certifying officer to represent the 
        Indian tribe and to assume the status of a responsible Federal 
        official under such laws; and
            ``(2) accepting the jurisdiction of the Federal court for 
        the purpose of enforcement of the responsibilities of the 
        responsible Federal official under such environmental laws.

    ``(b) Negotiations.--Construction project proposals shall be 
negotiated pursuant to the statutory process in section 105(m) and 
resulting construction project agreements shall be incorporated into 
funding agreements as addenda.
    ``(c) Codes and Standards.--The Indian tribe and the Secretary shall 
agree upon and specify appropriate building codes and architectural and 
engineering standards (including health and safety) which shall be in 
conformity with nationally recognized standards for comparable projects.
    ``(d) Responsibility for Completion.--The Indian tribe shall assume 
responsibility for the successful completion of the construction project 
in accordance with the negotiated construction project agreement.
    ``(e) Funding.--Funding for construction projects carried out under 
this title shall be included in funding agreements as annual advance 
payments, with semiannual payments at the option of the Indian tribe. 
Annual advance and semiannual payment amounts shall be determined based 
on mutually agreeable project schedules reflecting work to be 
accomplished within the advance payment period, work accomplished and 
funds expended in previous payment periods, and the total prior 
payments. The Secretary shall include associated project contingency 
funds with each advance payment installment. The Indian tribe shall be 
responsible for the management of the contingency funds included in 
funding agreements.
    ``(f ) Approval.--The Secretary shall have at least one opportunity 
to approve project planning and design documents prepared by the Indian 
tribe in advance of construction of the facilities specified in the 
scope of work for each negotiated construction project agreement or 
amendment thereof which results in a significant change in the original 
scope of work. The Indian tribe shall provide the Secretary with project 
progress and financial reports not less than semiannually. The Secretary 
may conduct onsite project oversight visits semiannually or on an 
alternate schedule agreed to by the Secretary and the Indian tribe.
    ``(g) Wages.--All laborers and mechanics employed by contractors and 
subcontractors (excluding tribes and tribal organizations) in the 
construction, alteration, or repair, including painting or decorating of 
a building or other facilities in connection with construction projects 
funded by the United States under this Act shall be paid wages at not 
less than those prevailing wages on similar construction in the locality 
as determined by the Secretary of Labor in accordance with the Davis-
Bacon Act of March 3, 1931 (46 Stat. 1494). With respect to construction 
alteration, or repair work to which the Act of March 3, 1931, is 
applicable under this section, the Secretary of Labor shall have the 
authority and functions set forth in the Reorganization Plan numbered 
14, of 1950, and section 2 of the Act of June 13, 1934 (48 Stat. 948).
    ``(h) Application of Other Laws.--Unless otherwise agreed to by the 
Indian tribe, no provision of the Office of Federal Procurement Policy 
Act, the Federal Acquisition Regulations issued pursuant thereto, or any 
other law or regulation pertaining to Federal

[[Page 114 STAT. 726]]

procurement (including Executive orders) shall apply to any construction 
project conducted under this title.

``SEC. 510. <<NOTE: 25 USC 458aaa-9.>> FEDERAL PROCUREMENT LAWS AND 
            REGULATIONS.

    ``Regarding construction programs or projects, the Secretary and 
Indian tribes may negotiate for the inclusion of specific provisions of 
the Office of Federal Procurement and Policy Act (41 U.S.C. 401 et seq.) 
and Federal acquisition regulations in any funding agreement entered 
into under this part. Absent a negotiated agreement, such provisions and 
regulatory requirements shall not apply.

``SEC. 511. <<NOTE: 25 USC 458aaa-10.>> CIVIL ACTIONS.

    ``(a) Contract Defined.--For the purposes of section 110, the term 
`contract' shall include compacts and funding agreements entered into 
under this title.
    ``(b) Applicability of Certain Laws.--Section 2103 of the Revised 
Statutes (25 U.S.C. 81) and section 16 of the Act of June 18, 1934 (48 
Stat. 987; chapter 576; 25 U.S.C. 476), shall not apply to attorney and 
other professional contracts entered into by Indian tribes participating 
in self-governance under this title.
    ``(c) References.--All references in this Act to section 1 of the 
Act of June 26, 1936 (49 Stat. 1967; chapter 831) are hereby deemed to 
include the first section of the Act of July 3, 1952 (66 Stat. 323; 
chapter 549; 25 U.S.C. 82a).

``SEC. 512. <<NOTE: 25 USC 458aaa-11.>> FACILITATION.

    ``(a) Secretarial Interpretation.--Except as otherwise provided by 
law, the Secretary shall interpret all Federal laws, Executive orders, 
and regulations in a manner that will facilitate--
            ``(1) the inclusion of programs, services, functions, and 
        activities (or portions thereof ) and funds associated 
        therewith, in the agreements entered into under this section;
            ``(2) the implementation of compacts and funding agreements 
        entered into under this title; and
            ``(3) the achievement of tribal health goals and objectives.

    ``(b) Regulation Waiver.--
            ``(1) In general.--An Indian tribe may submit a written 
        request to waive application of a regulation promulgated under 
        section 517 or the authorities specified in section 505(b) for a 
        compact or funding agreement entered into with the Indian Health 
        Service under this title, to the Secretary identifying the 
        applicable Federal regulation sought to be waived and the basis 
        for the request.
            ``(2) Approval.--Not <<NOTE: Deadline.>> later than 90 days 
        after receipt by the Secretary of a written request by an Indian 
        tribe to waive application of a regulation for a compact or 
        funding agreement entered into under this title, the Secretary 
        shall either approve or deny the requested waiver in writing. A 
        denial may be made only upon a specific finding by the Secretary 
        that identified language in the regulation may not be waived 
        because such waiver is prohibited by Federal 
        law. <<NOTE: Deadline.>> A failure to approve or deny a waiver 
        request not later than 90 days after receipt shall be deemed an 
        approval of such request. The Secretary's decision shall be 
        final for the Department.

    ``(c) Access to Federal Property.--In connection with any compact or 
funding agreement executed pursuant to this title or

[[Page 114 STAT. 727]]

an agreement negotiated under the Tribal Self-Governance Demonstration 
Project established under title III, as in effect before the enactment 
of the Tribal Self-Governance Amendments of 2000, upon the request of an 
Indian tribe, the Secretary--
            ``(1) shall permit an Indian tribe to use existing school 
        buildings, hospitals, and other facilities and all equipment 
        therein or appertaining thereto and other personal property 
        owned by the Government within the Secretary's jurisdiction 
        under such terms and conditions as may be agreed upon by the 
        Secretary and the Indian tribe for their use and maintenance;
            ``(2) may donate to an Indian tribe title to any personal or 
        real property found to be excess to the needs of any agency of 
        the Department, or the General Services Administration, except 
        that--
                    ``(A) subject to the provisions of subparagraph (B), 
                title to property and equipment furnished by the Federal 
                Government for use in the performance of the compact or 
                funding agreement or purchased with funds under any 
                compact or funding agreement shall, unless otherwise 
                requested by the Indian tribe, vest in the appropriate 
                Indian tribe;
                    ``(B) if property described in subparagraph (A) has 
                a value in excess of $5,000 at the time of retrocession, 
                withdrawal, or reassumption, at the option of the 
                Secretary upon the retrocession, withdrawal, or 
                reassumption, title to such property and equipment shall 
                revert to the Department of Health and Human Services; 
                and
                    ``(C) all property referred to in subparagraph (A) 
                shall remain eligible for replacement, maintenance, and 
                improvement on the same basis as if title to such 
                property were vested in the United States; and
            ``(3) shall acquire excess or surplus Government personal or 
        real property for donation to an Indian tribe if the Secretary 
        determines the property is appropriate for use by the Indian 
        tribe for any purpose for which a compact or funding agreement 
        is authorized under this title.

    ``(d) Matching or Cost-Participation Requirement.--All funds 
provided under compacts, funding agreements, or grants made pursuant to 
this Act, shall be treated as non-Federal funds for purposes of meeting 
matching or cost participation requirements under any other Federal or 
non-Federal program.
    ``(e) State Facilitation.--States are hereby authorized and 
encouraged to enact legislation, and to enter into agreements with 
Indian tribes to facilitate and supplement the initiatives, programs, 
and policies authorized by this title and other Federal laws benefiting 
Indians and Indian tribes.
    ``(f ) Rules of Construction.--Each provision of this title and each 
provision of a compact or funding agreement shall be liberally construed 
for the benefit of the Indian tribe participating in self-governance and 
any ambiguity shall be resolved in favor of the Indian tribe.

``SEC. 513. <<NOTE: 25 USC 458aaa-12.>> BUDGET REQUEST.

    ``(a) Requirement of Annual Budget Request.--
            ``(1) <<NOTE: President.>> In general.--The President shall 
        identify in the annual budget request submitted to Congress 
        under section

[[Page 114 STAT. 728]]

        1105 of title 31, United States Code, all funds necessary to 
        fully fund all funding agreements authorized under this title, 
        including funds specifically identified to fund tribal base 
        budgets. All funds so appropriated shall be apportioned to the 
        Indian Health Service. Such funds shall be provided to the 
        Office of Tribal Self-Governance which shall be responsible for 
        distribution of all funds provided under section 505.
            ``(2) Rule of construction.--Nothing in this subsection 
        shall be construed to authorize the Indian Health Service to 
        reduce the amount of funds that a self-governance tribe is 
        otherwise entitled to receive under its funding agreement or 
        other applicable law, whether or not such funds are apportioned 
        to the Office of Tribal Self-Governance under this section.

    ``(b) Present Funding; Shortfalls.--In such budget request, the 
President shall identify the level of need presently funded and any 
shortfall in funding (including direct program and contract support 
costs) for each Indian tribe, either directly by the Secretary of Health 
and Human Services, under self-determination contracts, or under 
compacts and funding agreements authorized under this title.

``SEC. 514. <<NOTE: 25 USC 458aaa-13.>> REPORTS.

    ``(a) Annual Report.--
            ``(1) In <<NOTE: Deadline.>> general.--Not later than 
        January 1 of each year after the date of the enactment of the 
        Tribal Self-Governance Amendments of 2000, the Secretary shall 
        submit to the Committee on Indian Affairs of the Senate and the 
        Committee on Resources of the House of Representatives a written 
        report regarding the administration of this title.
            ``(2) Analysis.--The report under paragraph (1) shall 
        include a detailed analysis of the level of need being presently 
        funded or unfunded for each Indian tribe, either directly by the 
        Secretary, under self-determination contracts under title I, or 
        under compacts and funding agreements authorized under this Act. 
        In compiling reports pursuant to this section, the Secretary may 
        not impose any reporting requirements on participating Indian 
        tribes or tribal organizations, not otherwise provided in this 
        Act.

    ``(b) Contents.--The report under subsection (a) shall--
            ``(1) be compiled from information contained in funding 
        agreements, annual audit reports, and data of the Secretary 
        regarding the disposition of Federal funds; and
            ``(2) identify--
                    ``(A) the relative costs and benefits of self-
                governance;
                    ``(B) with particularity, all funds that are 
                specifically or functionally related to the provision by 
                the Secretary of services and benefits to self-
                governance Indian tribes and their members;
                    ``(C) the funds transferred to each self-governance 
                Indian tribe and the corresponding reduction in the 
                Federal bureaucracy;
                    ``(D) the funding formula for individual tribal 
                shares of all headquarters funds, together with the 
                comments of affected Indian tribes or tribal 
                organizations, developed under subsection (c); and

[[Page 114 STAT. 729]]

                    ``(E) amounts expended in the preceding fiscal year 
                to carry out inherent Federal functions, including an 
                identification of those functions by type and location;
            ``(3) contain a description of the method or methods (or any 
        revisions thereof ) used to determine the individual tribal 
        share of funds controlled by all components of the Indian Health 
        Service (including funds assessed by any other Federal agency) 
        for inclusion in self-governance compacts or funding agreements;
            ``(4) <<NOTE: Deadline.>> before being submitted to 
        Congress, be distributed to the Indian tribes for comment (with 
        a comment period of no less than 30 days, beginning on the date 
        of distribution); and
            ``(5) include the separate views and comments of the Indian 
        tribes or tribal organizations.

    ``(c) <<NOTE: Deadline.>> Report on Fund Distribution Method.--Not 
later than 180 days after the date of the enactment of the Tribal Self-
Governance Amendments of 2000, the Secretary shall, after consultation 
with Indian tribes, submit a written report to the Committee on 
Resources of the House of Representatives and the Committee on Indian 
Affairs of the Senate that describes the method or methods used to 
determine the individual tribal share of funds controlled by all 
components of the Indian Health Service (including funds assessed by any 
other Federal agency) for inclusion in self-governance compacts or 
funding agreements.

``SEC. 515. <<NOTE: 25 USC 458aaa-14.>> DISCLAIMERS.

    ``(a) No Funding Reduction.--Nothing in this title shall be 
construed to limit or reduce in any way the funding for any program, 
project, or activity serving an Indian tribe under this or other 
applicable Federal law. Any Indian tribe that alleges that a compact or 
funding agreement is in violation of this section may apply the 
provisions of section 110.
    ``(b) Federal Trust and Treaty Responsibilities.--Nothing in this 
Act shall be construed to diminish in any way the trust responsibility 
of the United States to Indian tribes and individual Indians that exists 
under treaties, Executive orders, or other laws and court decisions.
    ``(c) Obligations of the United States.--The Indian Health Service 
under this Act shall neither bill nor charge those Indians who may have 
the economic means to pay for services, nor require any Indian tribe to 
do so.

``SEC. 516. <<NOTE: 25 USC 458aaa-15.>> APPLICATION OF OTHER SECTIONS OF 
            THE ACT.

    ``(a) Mandatory Application.--All provisions of sections 5(b), 6, 7, 
102(c) and (d), 104, 105(k) and (l), 106(a) through (k), and 111 of this 
Act and section 314 of Public Law 101-512 (coverage under chapter 171 of 
title 28, United States Code, commonly known as the `Federal Tort Claims 
Act'), to the extent not in conflict with this title, shall apply to 
compacts and funding agreements authorized by this title.
    ``(b) Discretionary Application.--At the request of a participating 
Indian tribe, any other provision of title I, to the extent such 
provision is not in conflict with this title, shall be made a part of a 
funding agreement or compact entered into under this title. The 
Secretary is obligated to include such provision at the option of the 
participating Indian tribe or tribes. If such provision is incorporated 
it shall have the same force and effect as

[[Page 114 STAT. 730]]

if it were set out in full in this title. In the event an Indian tribe 
requests such incorporation at the negotiation stage of a compact or 
funding agreement, such incorporation shall be deemed effective 
immediately and shall control the negotiation and resulting compact and 
funding agreement.

``SEC. 517. <<NOTE: 25 USC 458aaa-16.>> REGULATIONS.

    ``(a) In General.--
            ``(1) Promulgation.--Not <<NOTE: Deadline.>> later than 90 
        days after the date of the enactment of the Tribal Self-
        Governance Amendments of 2000, the Secretary shall initiate 
        procedures under subchapter III of chapter 5 of title 5, United 
        States Code, to negotiate and promulgate such regulations as are 
        necessary to carry out this title.
            ``(2) Publication <<NOTE: Federal Register, 
        publication.>> of proposed regulations.--Proposed regulations to 
        implement this title shall be published in the Federal Register 
        by the Secretary no later than 1 year after the date of the 
        enactment of the Tribal Self-Governance Amendments of 2000.
            ``(3) Expiration of authority.--The authority to promulgate 
        regulations under paragraph (1) shall expire 21 months after the 
        date of the enactment of the Tribal Self-Governance Amendments 
        of 2000.

    ``(b) Committee.--
            ``(1) In general.--A negotiated rulemaking committee 
        established pursuant to section 565 of title 5, United States 
        Code, to carry out this section shall have as its members only 
        Federal and tribal government representatives, a majority of 
        whom shall be nominated by and be representatives of Indian 
        tribes with funding agreements under this Act.
            ``(2) Requirements.--The committee shall confer with, and 
        accommodate participation by, representatives of Indian tribes, 
        inter-tribal consortia, tribal organizations, and individual 
        tribal members.

    ``(c) Adaptation of Procedures.--The Secretary shall adapt the 
negotiated rulemaking procedures to the unique context of self-
governance and the government-to-government relationship between the 
United States and Indian tribes.
    ``(d) Effect.--The lack of promulgated regulations shall not limit 
the effect of this title.
    ``(e) Effect of Circulars, Policies, Manuals, Guidances, and 
Rules.--Unless expressly agreed to by the participating Indian tribe in 
the compact or funding agreement, the participating Indian tribe shall 
not be subject to any agency circular, policy, manual, guidance, or rule 
adopted by the Indian Health Service, except for the eligibility 
provisions of section 105(g) and regulations promulgated under section 
517.

``SEC. 518. <<NOTE: 25 USC 458aaa-17.>> APPEALS.

    ``In any appeal (including civil actions) involving decisions made 
by the Secretary under this title, the Secretary shall have the burden 
of proof of demonstrating by clear and convincing evidence--
            ``(1) the validity of the grounds for the decision made; and
            ``(2) that the decision is fully consistent with provisions 
        and policies of this title.

[[Page 114 STAT. 731]]

``SEC. 519. <<NOTE: 25 USC 458aaa-18.>> AUTHORIZATION OF APPROPRIATIONS.

    ``(a) In General.--There are authorized to be appropriated such sums 
as may be necessary to carry out this title.
    ``(b) Availability of Appropriations.--Notwithstanding any other 
provision of this Act, the provision of funds under this Act shall be 
subject to the availability of appropriations and the Secretary is not 
required to reduce funding for programs, projects, or activities serving 
a tribe in order to make funds available to another tribe or tribal 
organization under this Act.''.

SEC. 5. TRIBAL SELF-GOVERNANCE DEPARTMENT.

    The Indian Self-Determination and Education Assistance Act (25 
U.S.C. 450 et seq.) is amended by adding at the end the following:

    ``TITLE <<NOTE: 25 USC 450f note.>> VI--TRIBAL SELF-GOVERNANCE--
DEPARTMENT OF HEALTH AND HUMAN SERVICES

``SEC. 601. DEFINITIONS.

    ``(a) In General.--In this title, the Secretary may apply the 
definitions contained in title V.
    ``(b) Other Definitions.--In this title:
            ``(1) Agency.--The term `agency' means any agency or other 
        organizational unit of the Department of Health and Human 
        Services, other than the Indian Health Service.
            ``(2) Secretary.--The term `Secretary' means the Secretary 
        of Health and Human Services.

``SEC. 602. DEMONSTRATION PROJECT FEASIBILITY.

    ``(a) Study.--The Secretary shall conduct a study to determine the 
feasibility of a tribal self-governance demonstration project for 
appropriate programs, services, functions, and activities (or portions 
thereof ) of the agency.
    ``(b) Considerations.--In conducting the study, the Secretary shall 
consider--
            ``(1) the probable effects on specific programs and program 
        beneficiaries of such a demonstration project;
            ``(2) statutory, regulatory, or other impediments to 
        implementation of such a demonstration project;
            ``(3) strategies for implementing such a demonstration 
        project;
            ``(4) probable costs or savings associated with such a 
        demonstration project;
            ``(5) methods to assure quality and accountability in such a 
        demonstration project; and
            ``(6) such other issues that may be determined by the 
        Secretary or developed through consultation pursuant to section 
        603.

    ``(c) <<NOTE: Deadline.>> Report.--Not later than 18 months after 
the date of the enactment of this title, 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. The report shall 
contain--
            ``(1) the results of the study under this section;

[[Page 114 STAT. 732]]

            ``(2) a list of programs, services, functions, and 
        activities (or portions thereof ) within each agency with 
        respect to which it would be feasible to include in a tribal 
        self-governance demonstration project;
            ``(3) a list of programs, services, functions, and 
        activities (or portions thereof ) included in the list provided 
        pursuant to paragraph (2) that could be included in a tribal 
        self-governance demonstration project without amending statutes, 
        or waiving regulations that the Secretary may not waive;
            ``(4) a list of legislative actions required in order to 
        include those programs, services, functions, and activities (or 
        portions thereof ) included in the list provided pursuant to 
        paragraph (2) but not included in the list provided pursuant to 
        paragraph (3) in a tribal self-governance demonstration project; 
        and
            ``(5) any separate views of tribes and other entities 
        consulted pursuant to section 603 related to the information 
        provided pursuant to paragraphs (1) through (4).

``SEC. 603. CONSULTATION.

    ``(a) Study Protocol.--
            ``(1) Consultation with indian tribes.--The Secretary shall 
        consult with Indian tribes to determine a protocol for 
        consultation under subsection (b) prior to consultation under 
        such subsection with the other entities described in such 
        subsection.
            ``(2) Requirements for protocol.--The protocol shall 
        require, at a minimum, that--
                    ``(A) the government-to-government relationship with 
                Indian tribes forms the basis for the consultation 
                process;
                    ``(B) the Indian tribes and the Secretary jointly 
                conduct the consultations required by this section; and
                    ``(C) the consultation process allows for separate 
                and direct recommendations from the Indian tribes and 
                other entities described in subsection (b).

    ``(b) Conducting Study.--In conducting the study under this title, 
the Secretary shall consult with Indian tribes, States, counties, 
municipalities, program beneficiaries, and interested public interest 
groups, and may consult with other entities as appropriate.

``SEC. 604. AUTHORIZATION OF APPROPRIATIONS.

    ``There are authorized to be appropriated such sums as may be 
necessary to carry out this title. Such sums shall remain available 
until expended.''.

SEC. 6. AMENDMENTS CLARIFYING CIVIL PROCEEDINGS.

    Section 102(e)(1) of the Indian Self-Determination and Education 
Assistance Act (25 U.S.C. 450f(e)(1)) is amended by inserting after 
``subsection (b)(3)'' the following: ``or any civil action conducted 
pursuant to section 110(a)''.

SEC. 7. SPEEDY ACQUISITION OF GOODS, SERVICES, OR SUPPLIES.

    Section 105(k) of the Indian Self-Determination and Education 
Assistance Act (25 U.S.C. 450j(k)) is amended--
            (1) by striking ``deemed an executive agency'' and inserting 
        ``deemed an executive agency and part of the Indian Health 
        Service''; and
            (2) by adding at the end the following: ``For purposes of 
        carrying out such contract, grant, or agreement, the Secretary

[[Page 114 STAT. 733]]

        shall, at the request of an Indian tribe, enter into an 
        agreement for the acquisition, on behalf of the Indian tribe, of 
        any goods, services, or supplies available to the Secretary from 
        the General Services Administration or other Federal agencies 
        that are not directly available to the Indian tribe under this 
        section or under any other Federal law, including acquisitions 
        from prime vendors. All such acquisitions shall be undertaken 
        through the most efficient and speedy means practicable, 
        including electronic ordering arrangements.''.

SEC. 8. PATIENT RECORDS.

    Section 105 of the Indian Self-Determination and Education 
Assistance Act (25 U.S.C. 450j) is amended by adding at the end the 
following:
    ``(o) Patient Records.--
            ``(1) In general.--At the option of an Indian tribe or 
        tribal organization, patient records may be deemed to be Federal 
        records under those provisions of title 44, United States Code, 
        that are commonly referred to as the `Federal Records Act of 
        1950' for the limited purposes of making such records eligible 
        for storage by Federal Records Centers to the same extent and in 
        the same manner as other Department of Health and Human Services 
        patient records.
            ``(2) Treatment of records.--Patient records that are deemed 
        to be Federal records under those provisions of title 44, United 
        States Code, that are commonly referred to as the `Federal 
        Records Act of 1950' pursuant to this subsection shall not be 
        considered Federal records for the purposes of chapter 5 of 
        title 5, United States Code.''.

SEC. 9. ANNUAL REPORTS.

    Section 106 of the Indian Self-Determination and Education 
Assistance Act (25 U.S.C. 450j-1) is amended--
            (1) by redesignating subsections (c) through (n) as 
        subsections (d) through (o), respectively; and
            (2) by inserting after subsection (b), the following:

    ``(c) <<NOTE: Deadline.>> Annual Reports.--Not later than May 15 of 
each year, the Secretary shall prepare and submit to Congress an annual 
report on the implementation of this Act. Such report shall include--
            ``(1) an accounting of the total amounts of funds provided 
        for each program and the budget activity for direct program 
        costs and contract support costs of tribal organizations under 
        self-determination;
            ``(2) an accounting of any deficiency in funds needed to 
        provide required contract support costs to all contractors for 
        the fiscal year for which the report is being submitted;
            ``(3) the indirect cost rate and type of rate for each 
        tribal organization that has been negotiated with the 
        appropriate Secretary;
            ``(4) the direct cost base and type of base from which the 
        indirect cost rate is determined for each tribal organization;
            ``(5) the indirect cost pool amounts and the types of costs 
        included in the indirect cost pool; and
            ``(6) an accounting of any deficiency in funds needed to 
        maintain the preexisting level of services to any Indian tribes 
        affected by contracting activities under this Act, and a 
        statement of the amount of funds needed for transitional 
        purposes

[[Page 114 STAT. 734]]

        to enable contractors to convert from a Federal fiscal year 
        accounting cycle, as authorized by section 105(d).''.

SEC. 10. REPEAL.

    Title III of the Indian Self-Determination and Education Assistance 
Act (25 U.S.C. 450f note) is repealed.

SEC. 11. <<NOTE: 25 USC 450f note.>> SAVINGS PROVISION.

    Funds appropriated for title III of the Indian Self-Determination 
and Education Assistance Act (25 U.S.C. 450f note) shall be available 
for use under title V of such Act.

SEC. 12. APPLICATION TO ALASKA.

    (a) Notwithstanding any other provision of law, nothing in this Act, 
the amendments made thereby, nor its implementation, shall affect--
            (1) the right of the Consortium or Southcentral Foundation 
        to carry out the programs, functions, services and activities as 
        specified in section 325 of Public Law 105-83 (111 Stat. 55-56); 
        or
            (2) the prohibitions in section 351 of section 101(e) of 
        division A, Public Law 105-277.

    (b) Section 351 of section 101(e) of division A, Public Law 105-277 
and section 326 of Public Law 105-83 (111 Stat. 57) are amended by 
inserting ``as amended'' after the phrase ``Public Law 93-638 (25 U.S.C. 
450 et seq.)'' where such phrase appears in each section.

SEC. 13. <<NOTE: 25 USC 458aaa note.>> EFFECTIVE DATE.

    Except as otherwise provided, the provisions of this Act shall take 
effect on the date of the enactment of this Act.

    Approved August 18, 2000.

LEGISLATIVE HISTORY--H.R. 1167 (S. 979):
---------------------------------------------------------------------------

HOUSE REPORTS: No. 106-477 (Comm. on Resources).
SENATE REPORTS: No. 106-221 accompanying S. 979 (Comm. on Indian 
Affairs).
CONGRESSIONAL RECORD:
                                                        Vol. 145 (1999):
                                    Nov. 17, considered and passed 
                                        House.
                                                        Vol. 146 (2000):
                                    Apr. 4, considered and passed 
                                        Senate, amended, in lieu of  
                                        S. 979.
                                    July 24, House concurred in Senate 
                                        amendment with amendments 
                                        pursuant to H. Res. 562.
                                    July 26, Senate concurred in House 
                                        amendments.