To amend laws relating to the lands of the citizens of the Muscogee (Creek), Seminole, Cherokee, Chickasaw, and Choctaw Nations, historically referred to as the Five Civilized Tribes, and for other purposes.

September 12 (legislative day, SEPTEMBER 11), 2001

Mr. WATKINS of Oklahoma (for himself, Mr. CARSON of Oklahoma, Mr. KILDEE, and Mr. CONDIT) introduced the following bill; which was referred to the Committee on Resources

To amend laws relating to the lands of the citizens of the Muscogee (Creek), Seminole, Cherokee, Chickasaw, and Choctaw Nations, historically referred to as the Five Civilized Tribes, and for other purposes.

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

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

(a) SHORT TITLE- This Act may be cited as the `Five Nations Citizens Land Reform Act'.

(b) TABLE OF CONTENTS- The table of contents of this Act is as follows:

Sec. 1. Short title; table of contents.

Sec. 2. Findings.

Sec. 3. Purpose.

Sec. 4. Definitions.

TITLE I--RESTRICTIONS; REMOVAL OF RESTRICTIONS

Sec. 101. Restrictions on real property.

Sec. 102. Reinvestment of proceeds from condemnation or conveyance of restricted property.

Sec. 103. Restricted funds.

Sec. 104. Period of restrictions.

Sec. 105. Removal of restrictions.

Sec. 106. Exemptions from prior claims.

Sec. 107. Fractional interests.

TITLE II--ADMINISTRATIVE APPROVAL OF CONVEYANCES, PARTITIONS, LEASES, AND MORTGAGES; MANAGEMENT OF MINERAL INTERESTS

Sec. 201. Approval authority for conveyances and leases.

Sec. 202. Approval of conveyances.

Sec. 203. Reimposition of restrictions on conveyances of property to Indian housing authorities.

Sec. 204. Administrative partition.

Sec. 205. Surface leases.

Sec. 206. Mineral leases.

Sec. 207. Management of mineral interests.

Sec. 208. Mortgages.

TITLE III--PROBATE, HEIRSHIP DETERMINATION, AND OTHER JUDICIAL PROCEEDINGS

Sec. 301. Actions affecting restricted property.

Sec. 302. Heirship determinations and probates.

Sec. 303. Actions to cure title defects.

Sec. 304. Involuntary partitions.

Sec. 305. Requirements for actions to cure title defects and involuntary partitions.

Sec. 306. Pending State proceedings.

TITLE IV--MISCELLANEOUS

Sec. 401. Regulations.

Sec. 402. Validation of certain transactions; savings clause.

Sec. 403. Repeals.

Sec. 404. Secretarial trust responsibility.

Sec. 405. Representation by attorneys for the Department of the Interior.

Sec. 406. Filing requirements; constructive notice.

SEC. 2. FINDINGS.

Congress makes the following findings:

(1) Since 1970, Federal Indian policy has focused on Indian self-determination and economic self-sufficiency. The exercise of Federal instrumentality jurisdiction by the Oklahoma State courts over the Indian property that is subject to Federal restrictions against alienation belonging to members of the Five Nations is inconsistent with that policy.

(2) It is a goal of Congress to recognize the Indian land base as an integral part of the culture and heritage of Indian citizens.

(3) The exercise of Federal instrumentality jurisdiction by the courts of the State of Oklahoma over conveyances and inheritance of restricted property belonging to Indian citizens of the Five Nations--

(A) is costly, confusing, and cumbersome, and effectively prevents any meaningful Indian estate planning, and unduly complicates the probating of Indian estates and other legal proceedings relating to Indian citizens and their lands; and

(B) has impeded the self-determination and economic self-sufficiency of Indian citizens within the exterior boundaries of the Five Nations.

SEC. 3. PURPOSE.

(a) IN GENERAL- It is the purpose of this Act to--

(1) correct the disparate Federal treatment of individual allotted lands of Indian citizens of the Five Nations that resulted from prior Federal legislation by equalizing the Federal legislative treatment of restricted and trust lands;

(2) eliminate unnecessary legal and bureaucratic obstacles that impede the highest and best use of restricted property belonging to Indian citizens of the Five Nations;

(3) provide for an efficient process for the administrative review and approval of conveyances, voluntary partitions, and leases, and to provide for Federal administrative proceedings in testate and intestate probate and other cases that involve the restricted property of Indian citizens, which concern the rights of Indian citizens to hold and acquire such property in restricted and trust status; and

(4) transfer to the Secretary the Federal instrumentality jurisdiction of the Oklahoma State courts together with other authority currently exercised by such courts over the conveyance, devise, inheritance, lease, encumbrance, and partition under certain circumstances of restricted property belonging to Indian citizens of the Five Nations.

(b) RULE OF CONSTRUCTION- Nothing in this Act shall be construed to limit or affect the rights of Indian citizens under other Federal laws relating to the acquisition and status of trust property, including without limitation, the Act of June 18, 1934 (25 U.S.C. 461 et seq.) (commonly known as the Indian Reorganization Act), the Act of June 26, 1936 (25 U.S.C. 501 et seq.) (commonly known as the Oklahoma Indian Welfare Act), the Indian Land Consolidation Act (25 U.S.C. 2201 et seq.), and regulations relating to the Secretary's authority to acquire lands in trust for Indians and Indian tribes.

SEC. 4. DEFINITIONS.

In this Act:

(1) FIVE NATIONS- The term `Five Nations' means the Cherokee Nation, the Chickasaw Nation, the Choctaw Nation of Oklahoma, the Seminole Nation of Oklahoma, and the Muscogee (Creek) Nation, collectively, which are historically referred to as the `Five Civilized Tribes'.

(2) INDIAN CITIZEN- The term `Indian citizen' means a member or citizen of one of the individual Five Nations referred to in paragraph (1), or an individual who is a lineal descendant by blood of an Indian ancestor enrolled on the final Indian rolls of the Five Civilized Tribes closed in 1906.

(3) INDIAN COUNTRY- The term `Indian country' has the meaning given that term in section 1151 of title 18, United States Code, which includes restricted property and trust property (as such terms are defined in this Act).

(4) INDIAN NATION- The term `Indian Nation' means one of the individual Five Nations referred to in paragraph (1).

(5) REGIONAL OFFICE- The term `Regional Office' means the Eastern Oklahoma Regional Office of the Bureau of Indian Affairs, or any successor office within the Department of the Interior.

(6) RESTRICTED PROPERTY- The term `restricted property' means any right, title, or interest in real property owned by an Indian citizen that is subject to a restriction against alienation, conveyance, lease, mortgage, creation of liens, or other encumbrances imposed by this Act and other laws of the United States expressly applicable to the property of enrollees and lineal descendants of enrollees on the final Indian rolls of the Five Civilized Tribes in 1906, and includes, without limitation, those interests in property that were subject to a restriction against alienation imposed by the United States on the ownership of an Indian citizen who died prior to the effective date of this Act but whose interest had not, as of the effective date of this Act--

(A) been the subject of a final order determining heirs by a State district court or a United States district court;

(B) been conveyed by heirs by deed approved in State district court; or

(C) been conveyed by heirs of less than one-half degree of Indian blood with or without State district court approval.

The term restricted property shall not include Indian trust allotments made pursuant to the General Allotment Act (25 U.S.C. 331 et seq.) or any other trust property.

(7) SECRETARY- The term `Secretary' means the Secretary of the Interior or the designee of the Secretary of the Interior.

(8) TRUST PROPERTY- The term `trust property' means Indian property, title to which is held in trust by the United States for the benefit of an Indian citizen or an Indian Nation.

TITLE I--RESTRICTIONS; REMOVAL OF RESTRICTIONS

SEC. 101. RESTRICTIONS ON REAL PROPERTY.

(a) APPLICATION- Beginning on the effective date of this Act, all restricted property shall be subject to restrictions against alienation, conveyance, lease, mortgage, creation of liens, or other encumbrances, regardless of the degree of Indian blood of the Indian citizen who owns such property.

(b) CONTINUATION-

(1) IN GENERAL- The restrictions made applicable under subsection (a) shall continue with respect to restricted property upon the acquisition of such property by an Indian citizen by inheritance, devise, gift, or exchange.

(2) WITH WAIVER- The restrictions made applicable under subsection (a) shall continue with respect to restricted property upon the acquisition of such property by an Indian citizen by election to take at partition or by purchase, but only if--

(A) prior to the execution of the deed transferring such restricted property, the Indian citizen who owned such property prior to such election to take or purchase executes a written waiver of his or her right to acquire other property in restricted status pursuant to section 102; and

(B) such restrictions appear in the deed transferring such property to the Indian citizen electing to take at partition or purchasing such property, together with certification on said deed by the Secretary that the requirements of this paragraph have been met.

SEC. 102. REINVESTMENT OF PROCEEDS FROM CONDEMNATION OR CONVEYANCE OF RESTRICTED PROPERTY.

(a) REQUIREMENT- Upon the conveyance of the restricted property of an Indian citizen pursuant to this Act, or upon the conveyance or condemnation of such property pursuant to section 3 of the Act of March 3, 1901 (25 U.S.C. 357) or other Federal laws generally applicable to the condemnation of Indian trust or restricted property, to any individual, corporation, or other entity, any proceeds from such conveyance or condemnation shall be used to purchase from a willing seller other property designated by such Indian citizen, and such designated property shall be restricted property within the meaning of this Act if--

(1) such proceeds were deposited into a segregated account in a trust fund under the supervision of the Secretary at the request of the Indian citizen;

(2) such Indian citizen provides a written request to the Secretary for payment of all or a portion of such proceeds for purchase of property to be held in restricted status;

(3) such Indian citizen has not executed a written waiver of his or her right to acquire other property in restricted status pursuant to section 101; and

(4) such restrictions appear in the conveyance to the Indian citizen with certification by the Secretary that the requirements of this section have been met.

(b) FAIR MARKET VALUE IN EXCESS OF PROCEEDS- If the fair market value of any property designated under subsection (a) exceeds the amount of proceeds that are derived from the conveyance or condemnation involved, a specific tract of land within the property shall be designated by the Indian citizen for placement in restricted status. The size of the restricted tract of land so designated shall be in the same proportion to the whole of the property as the proceeds derived from the conveyance or condemnation bears to the fair market value of the whole of the property. Such restrictions shall appear

on the face of the deed with certification by the Secretary describing that portion of the property which is subject to restrictions and certifying that the requirements of this section have been met.

SEC. 103. RESTRICTED FUNDS.

(a) IN GENERAL- All funds and securities held or supervised by the Secretary derived from restricted property or individual Indian trust property on or after the effective date of this Act, including proceeds from any conveyance or condemnation as provided for in section 102, are declared to be restricted and shall remain subject to the jurisdiction of the Secretary until or unless otherwise provided for by Federal law.

(b) USE OF FUNDS- Funds, securities, and proceeds described in subsection (a) may be released or expended by the Secretary for the use and benefit of the Indian citizens to whom such funds, securities, and proceeds belong, as provided for by Federal law.

SEC. 104. PERIOD OF RESTRICTIONS.

Subject to the provisions of this Act that permit restrictions to be removed, the period of restriction against alienation, conveyance, lease, mortgage, creation of liens, or other encumbrances of restricted property and funds belonging to Indian citizens, is hereby extended until an Act of Congress determines otherwise.

SEC. 105. REMOVAL OF RESTRICTIONS.

(a) PROCEDURE-

(1) APPLICATION- An Indian citizen who owns restricted property, or the legal guardian of a minor Indian citizen or an Indian citizen who has been determined to be legally incompetent by a court of competent jurisdiction (including a tribal court), may apply to the Secretary for an order removing restrictions on any interest in restricted property held by such Indian citizen.

(2) CONSIDERATION OF APPLICATION- An application under paragraph (1) shall be considered by the Secretary only as to the tract, tracts, or severed mineral or surface interest described in the application. Not later than 90 days after the date on which an application is submitted, the Secretary shall either issue the removal order or disapprove the application.

(3) DISAPPROVAL- The Secretary shall disapprove an application under paragraph (1) if--

(A) in the Secretary's judgment, the applicant has been subjected to fraud, undue influence, or duress by a third party; or

(B) the Secretary determines it is otherwise not in the Indian citizen owner's best interest.

(b) REMOVAL OF RESTRICTIONS- When an order to remove restrictions becomes effective under subsection (a), the Secretary shall issue a certificate describing the property and stating that the Federal restrictions have been removed.

(c) SUBMISSION OF LIST- Prior to or on April 1 of each year, the Secretary shall cause to be filed with the county treasurer of each county in the State of Oklahoma where restricted property is situated, a list of restricted property that has lost its restricted status during the preceding calendar year through acquisition of ownership by an individual or entity who is not an Indian citizen or by removal of restrictions pursuant to this section.

(d) RULE OF CONSTRUCTION- Nothing in this section shall be construed to--

(1) abrogate valid existing rights to property that is subject to an order to remove restrictions under this section; and

(2) remove restrictions on any other restricted property owned by the applicant.

SEC. 106. EXEMPTIONS FROM PRIOR CLAIMS.

Sections 4 and 5 of the Act of May 27, 1908 (35 Stat. 312, chapter 199), shall apply to all restricted property.

SEC. 107. FRACTIONAL INTERESTS.

Upon application by an Indian citizen owner of an undivided unrestricted interest in property of which a portion of the interests in such property is restricted as of the effective date of this Act, the Secretary is authorized to convert that unrestricted interest into restricted status if all of the interests in the property are owned by Indian citizens as tenants in common as of the date of the application under this section.

TITLE II--ADMINISTRATIVE APPROVAL OF CONVEYANCES, PARTITIONS, LEASES, AND MORTGAGES; MANAGEMENT OF MINERAL INTERESTS

SEC. 201. APPROVAL AUTHORITY FOR CONVEYANCES AND LEASES.

The Secretary shall have exclusive jurisdiction to approve conveyances and leases of restricted property by an Indian citizen or by any guardian or conservator of any Indian citizen who is a ward in any guardianship or conservatorship proceeding pending in any court of competent jurisdiction, except that petitions for such approvals that are filed in Oklahoma district courts prior to the effective date of this Act may be heard and approved by such courts pursuant to the procedures described in section 1 of the Act of August 4, 1947 (61 Stat. 731, chapter 458), as in effect on the day before the effective date of this Act, if the Indian citizen does not revoke in writing his or her consent to the conveyance or lease prior to final court approval.

SEC. 202. APPROVAL OF CONVEYANCES.

(a) PROCEDURE-

(1) IN GENERAL- Except as provided in subsection (b), restricted property may be conveyed by an Indian citizen pursuant to the procedures described in this subsection.

(2) REQUIREMENTS- An Indian citizen may only convey restricted property--

(A) after the property is appraised by the Secretary;

(B) for an amount that is not less than 90 percent of the appraised value of the property;

(C) to the highest bidder through the submission to the Secretary of closed, silent bids or negotiated bids; and

(D) upon the approval of the Secretary.

(b) EXCEPTION-

(1) IN GENERAL- Notwithstanding subsection (a)(2), an Indian citizen may convey his or her restricted property, or any portion thereof, to any of the individuals or entities described in paragraph (2)

without soliciting bids, providing notice, or for consideration which is less than the appraised value of the property, if the Secretary determines that the conveyance is not contrary to the best interests of the Indian citizen and that the Indian citizen has been duly informed of and understands the fair market appraisal, and is not being coerced into the conveyance.

(2) INDIVIDUALS AND ENTITIES- An individual or entity described in this paragraph is--

(A) the Indian citizen's spouse (if he or she is an Indian citizen), father, mother, son, daughter, brother or sister, or other lineal descendant, aunt or uncle, cousin, niece or nephew, or Indian co-owner; or

(B) the Indian Nation whose last treaty boundaries encompassed the restricted property involved so long as the appraisal of the property was conducted by an independent appraiser not subject to the Indian Nation's control.

(c) STATUS- Restricted property that is acquired by an Indian Nation whose last treaty boundaries encompassed the restricted property shall continue to be Indian country. Upon application by the Indian Nation, the Secretary shall accept title to such property in trust by the United States for the benefit of the Indian Nation, except that the Secretary may first require elimination of any existing liens or other encumbrances in order to comply with applicable Federal title standards. The Secretary shall accept title to the property in trust for the Indian Nation only if, after conducting a survey for hazardous substances, he determines that there is no evidence of such substances on the property.

SEC. 203. REIMPOSITION OF RESTRICTIONS ON CONVEYANCES OF PROPERTY TO INDIAN HOUSING AUTHORITIES.

(a) IN GENERAL- In any case where the restrictions have been removed from restricted property for the purpose of allowing conveyances of the property to Indian housing authorities to enable such authorities to build homes for individual owners or relatives of owners of restricted property, the Secretary shall issue a Certificate of Restricted Status describing the property and imposing restrictions thereon upon written request by the Indian citizen homebuyer or a successor Indian citizen homebuyer. Such request shall include evidence satisfactory to the Secretary that the homebuyer's contract has been paid in full and be delivered to the Regional Office not later than 3 years after the housing authority conveys such property back to the original Indian citizen homebuyer or a successor Indian citizen homebuyer who is a citizen of the Nation whose last treaty boundaries encompass the property where the home is located.

(b) EXISTING LIENS- Prior to issuing a certificate under subsection (a) with respect to property, the Secretary may require the elimination of any existing liens or other encumbrances which would substantially interfere with the use of the property.

(c) APPLICATION TO CERTAIN HOMEBUYERS- Indian citizen homebuyers described in subsection (a) who acquired ownership of property prior to the effective date of this Act shall have 3 years from such effective date to request that the Secretary issue a certificate under such subsection.

(d) RULE OF CONSTRUCTION- Nothing in this Act shall be construed to limit or affect the rights of Indian citizens described in this section under other Federal laws and regulations relating to the acquisition and status of trust property.

SEC. 204. ADMINISTRATIVE PARTITION.

(a) JURISDICTION- Except as provided in section 304, the Secretary shall have exclusive jurisdiction to approve the partition of property located within the last treaty boundaries of 1 or more of the Five Nations, all of which is held in common, in trust, or in restricted status, by more than 1 Indian citizen owner, if the requirements of this section are complied with. The Secretary may approve the voluntary partition of property consisting of both restricted and unrestricted undivided interests if all owners of the unrestricted interests consent to such approval in writing.

(b) PARTITION WITHOUT APPLICATION- If the Secretary determines that any property described in subsection (a) is capable of partition in kind to the advantage of the owners, the Secretary may initiate partition of the property by--

(1) notifying the owners of such determination;

(2) providing the owners with a partition plan for such property; and

(3) affording the owners a reasonable time to respond, object, or consent to the proposal, in accordance with subsection (d).

(c) APPLICATION FOR PARTITION-

(1) IN GENERAL- An owner or owners of an undivided interest in any property described in subsection (a) may make written application, on a form approved by the Secretary, for the partition of their trust or restricted property.

(2) DETERMINATION- If, based on an application submitted under paragraph (1), the Secretary determines that the property involved is susceptible to partition in kind, the Secretary shall initiate partition of the property by--

(A) notifying the owners of such determination;

(B) providing the owners with a partition plan; and

(C) affording the owners a reasonable time to respond, object, or consent in accordance with subsection (d).

(d) PARTITION PROCEDURES-

(1) PROPOSED LAND DIVISION PLAN- The Secretary shall give applicants under subsection (c) and nonpetitioning owners of property subject to partition under this section with a reasonable opportunity to negotiate a proposed land division plan for the purpose of securing ownership of a tract on the property equivalent to their respective interests in the undivided estate, prior to taking any action related to partition of the property under this section.

(2) APPROVAL- If a plan under paragraph (1) is approved by--

(A) Indian citizen owners of more than 50 percent of the property which is entirely in trust status (as distinguished from restricted

status) and if the Secretary finds the plan to be reasonable, fair, and equitable, the Secretary shall issue an order partitioning the trust property in kind; or

(B) the Indian citizens who own more than 50 percent of the undivided interests which are held in restricted status (as distinguished from trust status) and if the Secretary finds the plan to be reasonable, fair, and equitable, the Secretary may attempt to negotiate for partition in kind or for sale of all or a portion of the property, and secure deeds from all interest owners, subject to the Secretary's approval.

(3) LIMITATION- No partition under paragraph (2)(B) shall be effected unless all of the owners have consented to the plan in writing.

SEC. 205. SURFACE LEASES.

The surface of restricted property may be leased by an Indian citizen pursuant to the Act of August 9, 1955 (25 U.S.C. 415 et seq.), except that the Secretary may approve any agricultural lease or permit with respect to restricted property in accordance with the provisions of section 105 of the American Indian Agricultural Resource Management Act (25 U.S.C. 3715).

SEC. 206. MINERAL LEASES.

(a) APPROVAL-

(1) GENERAL RULE- No mineral lease or agreement purporting to convey or create any interest in restricted or trust property that is entered into or renewed after the effective date of this Act shall be valid unless approved by the Secretary.

(2) REQUIREMENTS- The Secretary may approve a mineral lease or agreement described in paragraph (1) only if--

(A) the owners of a majority of the undivided interest in the restricted or trust mineral estate that is the subject of the mineral lease or agreement (including any interest covered by a lease or agreement executed by the Secretary under subsection (c)) consent to the lease or agreement;

(B) the Secretary determines that approving the lease or agreement is in the best interest of the Indian citizen owners of the restricted or trust mineral interests; and

(C) the Secretary has accepted the highest bid for such lease or agreement after a competitive bidding process has been conducted by the Secretary, unless the Secretary has determined that it is in the best interest of the Indian citizen to award a lease made by negotiation, and the Indian citizen so consents.

(b) EFFECT OF APPROVAL- Upon the approval of a mineral lease or agreement by the Secretary under subsection (a), the lease or agreement shall be binding upon all owners of the restricted or trust undivided interests subject to the lease or agreement (including any interest owned by an Indian tribe) and all other parties to the lease or agreement, to the same extent as if all of the Indian citizen owners of the restricted or trust mineral interests involved had consented to the lease or agreement.

(c) EXECUTION OF LEASE OR AGREEMENT BY SECRETARY- The Secretary may execute a mineral lease or agreement that affects restricted or trust property interests on behalf of an Indian citizen owner if that owner is deceased and the heirs to, or devisees of, the interest of the deceased owner have not been determined, or if the heirs or devisees have been determined but one or more of the heirs or devisees cannot be located.

(d) DISTRIBUTION OF PROCEEDS- The proceeds derived from a mineral lease or agreement approved by the Secretary under subsection (a) shall be distributed in accordance with the interest held by each owner pursuant to such rules and regulations as may be promulgated by the Secretary.

(e) COMMUNITIZATION AGREEMENTS- No unleased restricted or trust property located within a spacing and drilling unit approved by the Oklahoma Corporation Commission may be drained of any oil or gas by a well within such unit without a communitization agreement prepared and approved by the Secretary, except that in the event of any such drainage without a communitization agreement approved by the Secretary, 100 percent of all revenues derived from the production from any such restricted or trust property shall be paid to the Indian citizen owner free of all lifting and other production costs.

SEC. 207. MANAGEMENT OF MINERAL INTERESTS.

(a) OIL AND GAS CONSERVATION LAWS-

(1) IN GENERAL- The oil and gas conservation laws of the State of Oklahoma shall apply to restricted property.

(2) ENFORCEMENT- The Oklahoma Corporation Commission shall have the authority to perform ministerial functions related to the enforcement of the laws referred to in paragraph (1), including enforcement actions against well operators, except that no order of the Corporation Commission affecting restricted Indian property shall be valid as to such property until such order is submitted to and approved by the Secretary.

(3) RULE OF CONSTRUCTION- Nothing in this subsection shall be construed to limit the authority of the Indian Nations to protect the environment and natural resources of restricted property.

(b) IMPLEMENTATION OF FEDERAL OIL AND GAS ROYALTY MANAGEMENT ACT- Beginning on the effective date of this Act, the Secretary shall exercise all the duties and responsibilities of the Secretary under the Federal Oil and Gas Royalty Management Act of 1982 (30 U.S.C. 1702 et seq.) with respect to an oil and gas lease where--

(1) the Secretary has approved the oil and gas lease pursuant to section 206(a);

(2) the Secretary has, prior to the effective date of this Act, approved the oil and gas lease pursuant to the Act of May 27, 1908 (35 Stat. 312, chapter 199); or

(3) the Secretary has, before the effective date of this Act, approved an oil and gas lease of lands of any of the Five Nations pursuant to the Act of May 11, 1938 (25 U.S.C. 396a et seq.).

SEC. 208. MORTGAGES.

An Indian citizen may mortgage restricted property only in accordance with and under the authority of the Act of March 29, 1956 (25 U.S.C. 483a), or other Federal

laws applicable to the mortgaging of individual Indian trust property or restricted property.

TITLE III--PROBATE, HEIRSHIP DETERMINATION, AND OTHER JUDICIAL PROCEEDINGS

SEC. 301. ACTIONS AFFECTING RESTRICTED PROPERTY.

The courts of the State of Oklahoma shall not have jurisdiction over actions affecting title to, or use or disposition of, trust property or restricted property except as authorized by this Act or by other Federal laws applicable to trust property or restricted property.

SEC. 302. HEIRSHIP DETERMINATIONS AND PROBATES.

(a) JURISDICTION- Except as provided in section 306, the Secretary shall have exclusive jurisdiction, acting through an administrative law judge or other official designated by the Secretary, to probate wills or otherwise determine heirs of deceased Indian citizens and to adjudicate all such estate actions to the extent that they involve individual trust property, restricted property, or restricted or trust funds or securities held or supervised by the Secretary derived from such property.

(b) GOVERNING LAWS- Notwithstanding any other provision of law, the administrative law judge or other official designated by the Secretary shall exercise the Secretary's jurisdiction and authority under this section in accordance with the Indian Land Consolidation Act (25 U.S.C. 2201 et seq.) and such rules and regulations which heretofore have been, or will be, prescribed by the Secretary for the probate of wills, determination of heirs, and distribution of property in estates of Indian decedents, subject to the following requirements:

(1) LAW APPLICABLE TO ESTATES OF INDIAN CITIZEN DECEDENTS WHO DIED PRIOR TO EFFECTIVE DATE- The administrative law judge or other official designated by the Secretary shall apply the laws of descent and distribution of the State of Oklahoma contained in title 84 of the Oklahoma Statutes, chapter 4, to all restricted property, trust property, and all restricted or trust funds or securities derived from such property in the estates of deceased Indian citizens who died intestate prior to the effective date of this Act.

(2) LAW APPLICABLE TO WILLS EXECUTED PRIOR TO EFFECTIVE DATE- The administrative law judge or other official designated by the Secretary shall determine the validity and effect of wills as to estates containing trust property or restricted property when such wills were executed by Indian citizens prior to the effective date of this Act, in accordance with the laws of the State of Oklahoma governing the validity and effect of wills, provided that the will of a full-blood Indian citizen which disinherits the parent, wife, spouse, or children of such citizen shall not be valid with respect to the disposition of restricted property unless the requirements of section 23 of the Act of April 26, 1906 (34 Stat. 137, chapter 1876), as in effect on the day before the effective date of this Act, are met.

(3) LAW APPLICABLE TO WILLS EXECUTED AFTER EFFECTIVE DATE-

(A) IN GENERAL- Any Indian citizen who has attained age 18 and owns restricted property or trust property shall have the right to dispose of such property by will, executed on or after the effective date of this Act in accordance with regulations which heretofore have been, or will be, prescribed by the Secretary for the probate of wills, provided--

(i) no will so executed shall be valid or have any force or effect unless and until such will has been approved by the Secretary; and

(ii) that the Secretary may approve or disapprove such will either before or after the death of the Indian citizen testator.

(B) FRAUD- In any case where a will has been approved by the Secretary under subparagraph (A) and it is subsequently discovered that there was fraud in connection with the execution or procurement of the will, the Secretary is authorized, within 1 year after the death of the testator, to cancel approval of the will. If an approval is canceled in accordance with the preceding sentence, the property purported to be disposed of in the will shall descend or be distributed in accordance with the Secretary's rules and regulations applicable to estates of Indian decedents who die intestate.

(4) FEDERAL LAW CONTROLS- Notwithstanding any other provision of this section, Federal law governing personal claims against a deceased Indian citizen or against trust property or restricted property, including the restrictions imposed by this Act or other applicable Federal law against the alienation, conveyance, lease, mortgage, creation of liens, or other encumbrances of trust property or restricted property shall apply to all such property contained in the estate of the deceased Indian citizen.

SEC. 303. ACTIONS TO CURE TITLE DEFECTS.

(a) JURISDICTION- Except as provided in subsections (b) and (c), the United States district courts in the State of Oklahoma and the State courts of Oklahoma shall retain jurisdiction over actions seeking to cure defects affecting the marketability of title to restricted property, except that all such actions shall be subject to the requirements of section 305.

(b) ADVERSE POSSESSION- No cause of action may be brought to claim title to or an interest in restricted property by adverse possession or the doctrine of laches on or after the effective date of this Act, except that--

(1) all such causes that are pending on the effective date of this Act in accordance with the provisions of section 3 of the Act of April 12, 1926 (44 Stat. 239, chapter 115), shall be subject to section 306; and

(2) an action to quiet title to an interest in restricted property on the basis of adverse possession may be filed in the courts of the State of Oklahoma provided that all requirements of Oklahoma law for acquiring title by adverse possession, including the running of the full 15-year limitations period, have been met prior to the effective date of this Act and the procedures set forth in section 305 shall be followed; provided, however, the claimant in any such

action must show by clear and convincing evidence that the limitations period had run in full prior to the effective date of this Act.

(c) HEIRSHIP DETERMINATIONS AND DISPOSITIONS- Nothing in this section shall be construed to authorize a determination of heirs in a quiet title action in Federal or State court in derogation of the Secretary's exclusive jurisdiction to probate wills or otherwise determine heirs of the deceased Indian citizens owning restricted property and to adjudicate all such estate actions involving restricted property pursuant to section 302, or in derogation of the Secretary's exclusive jurisdiction over the disposition of restricted property under this Act. Provided, any grantee of an heir who, prior to the effective date of this Act and in accordance with applicable Federal laws, conveyed, leased, or otherwise encumbered his or her interest in the restricted property of an unprobated estate of an Indian citizen decedent shall have standing to request that the Secretary determine the heirs of the decedent in order to establish marketable title in said grantee. For purposes of this subsection the term grantee shall include any grantee, lessee, or mortgagee of such heir and any successors or assigns of such grantee.

SEC. 304. INVOLUNTARY PARTITIONS.

(a) JURISDICTION- The United States district courts in the State of Oklahoma and the State courts of Oklahoma shall retain jurisdiction over actions for the involuntary partition of property consisting entirely or partially of undivided restricted interests, subject to the provisions of subsections (b) through (e) and the requirements in section 306.

(b) APPLICABLE LAW- The laws of the State of Oklahoma governing the partition of property shall be applicable to all actions for involuntary partition under this section, except to the extent that any such laws are in conflict with any provisions of this Act.

(c) PETITION; CONSENT OF OWNERS OF MAJORITY OF UNDIVIDED INTERESTS- Any person who owns an undivided interest in a tract of property described in subsection (a) may file an action in the district court of the State of Oklahoma for the county wherein the tract is located for the involuntary partition of such tract. The court shall not grant the petition unless the owner or owners of more than 50 percent of the tract consent to the partition in the verified petition or verified answer filed in the action.

(d) PAYMENT TO NONCONSENTING OWNERS OF RESTRICTED INTERESTS- Nonconsenting owners of undivided restricted interests shall receive for the sale of such interests their proportionate share of the greater of--

(1) the proceeds paid at the partition sale; or

(2) an amount equal to 100 percent of the appraised value of the tract.

(e) COSTS- A nonconsenting Indian citizen owner of restricted interests shall not be liable for any filing fees or costs of an action under this section, including the cost of an appraisal, advertisement, and sale, and no such costs shall be charged against such nonconsenting owner's share of the proceeds of sale.

SEC. 305. REQUIREMENTS FOR ACTIONS TO CURE TITLE DEFECTS AND INVOLUNTARY PARTITIONS.

(a) IN GENERAL- All actions authorized by sections 303 and 304 shall be conducted in accordance with the requirements and procedures described in this section.

(b) PARTIES-

(1) UNITED STATES- The United States shall not be a necessary and indispensable party to an action authorized under section 303 or 304. The Secretary may participate as a party in any such action.

(2) PARTICIPATION OF SECRETARY- If the Secretary elects to participate in an action as provided for under paragraph (1), the responsive pleading of the Secretary shall be made not later than 20

days after the Secretary receives the notice required under subsection (c), or within such extended time as the trial court in its discretion may permit.

(3) JUDGMENT BINDING- After the appearance of the Secretary in any action described in paragraph (1), or after the expiration of the time in which the Secretary is authorized to respond under paragraph (2), the proceedings and judgment in such action shall be binding on the United States and the parties upon whom service has been made and shall affect the title to the restricted property which is the subject of the action, in the same manner and extent as though nonrestricted property were involved.

(4) RULE OF CONSTRUCTION- Nothing in this section shall be construed to waive the requirement of service of summons in accordance with applicable Federal or State law upon the individual Indian citizen landowners, who shall be necessary and indispensable parties to all actions authorized by sections 303 and 304.

(c) NOTICE-

(1) IN GENERAL- The plaintiff in any action authorized by sections 303 and 304 shall serve written notice of the filing of such action and of a petition or complaint, or any amended petition or complaint which substantially changes the nature of the action or includes a new cause of action, upon the Director of the Regional Office not later than 10 days after the filing of any such petition or complaint or any such amended petition or complaint.

(2) FILING WITH CLERK- A duplicate original of any notice served under paragraph (1) shall be filed with the clerk of the court in which the action is pending.

(3) REQUIREMENTS- The notice required under paragraph (1) shall--

(A) be accompanied by a certified copy of all pleadings on file in the action at the time of the filing of the duplicate original notice with the clerk under paragraph (2);

(B) be signed by the plaintiff to the action or his or her counsel of record; and

(C) be served by certified mail, return receipt requested, and due return of service made thereon, showing date of receipt and service of notice.

(4) FAILURE TO SERVE- If the notice required under paragraph (1) is not served within the time required under such paragraph, or if return of service thereof is not made within the time permitted by law for the return of service of summons, alias notices may be provided until service and return of notice is made, except that in the event that service of the notice required under such paragraph is not made within 60 days following the filing of the petition or complaint or amendments thereof, the action shall be dismissed without prejudice.

(5) LIMITATION- In no event shall the United States or the parties named in a notice filed under paragraph (1) be bound, or title to the restricted property be affected, unless written notice is served upon the Director as required under this subsection.

(d) REMOVAL-

(1) IN GENERAL- The United States shall have the right to remove any action to which this section applies that is pending in a State court to the United States district court by filing with the State court, not later than 20 days after the service of any notice with respect to such action under subsection (c), or within such extended period of time as the trial court in its discretion may permit, a notice of the removal of such action to such United States district court, together with the certified copy

of the pleadings in such action as served on the Director of the Regional Office under subsection (c).

(2) DUTY OF STATE COURT- It shall be the duty of a State court to accept a notice filed under paragraph (1) and cease all proceedings with respect to such action.

(3) PLEADINGS- Not later than 20 days after the filing of a notice under paragraph (1), the copy of the pleadings involved (as provided under such paragraph) shall be entered in the district court of the United States and the defendants and intervenors in such action shall, not later than 20 days after the pleadings are so entered, file a responsive pleading to the complaint in such action.

(4) PROCEEDINGS- Upon the submission of the filings required under paragraph (3), the action shall proceed in the same manner as if it had been originally commenced in the district court, and its judgment may be reviewed by certiorari, appeal, or writ of error in like manner as if the action had been originally brought in such district court.

SEC. 306. PENDING STATE PROCEEDINGS.

The courts of the State of Oklahoma shall continue to exercise authority as a Federal instrumentality over all heirship, probate, partition, and other actions involving restricted property that are pending on the effective date of this Act until the issuance of a final judgment and exhaustion of all appeal rights in any such action, or until the petitioner, personal representative, or the State court dismisses the action in accordance with State law.

TITLE IV--MISCELLANEOUS

SEC. 401. REGULATIONS.

The Secretary may promulgate such regulations as may be necessary to carry out this Act, except that failure to promulgate such regulations shall not limit or delay the effect of this Act.

SEC. 402. VALIDATION OF CERTAIN TRANSACTIONS; SAVINGS CLAUSE.

(a) VALIDATION OF CERTAIN TITLE TRANSACTIONS- Any person having the legal capacity to own real property in the State of Oklahoma who claims ownership of an interest in such property through an unbroken chain of title of record, the title to which interest is or may be defective as a result of any transaction described in paragraphs (1) through (5) of this subsection that occurred in such chain of title, may cure the defect in title and validate the transaction by following the procedures of this section. When all conditions and requirements of this section have been met, and if no notice of objection has been timely filed by the Regional Director under subsection (c) or by any other person under subsection (f), the transaction shall be validated and shall not be considered a defect in the muniments of title but only insofar as the defect is based on or arises from Federal statutes applicable to the conveyance or inheritance of restricted property in effect at the time of the transaction.

(1) Any probate order issued by a county court of the State of Oklahoma prior to the effective date of the Act of June 14, 1918, 40 Stat. 606, purporting to probate the estate of a deceased Indian citizen who died owning property which was subject to restrictions against alienation pursuant to Federal statutes in effect at the time of issuance of such probate order;

(2) Any probate order issued by a county or district court of the State of Oklahoma more than 30 years prior to the effective date of this Act purporting to probate the estate of a deceased Indian citizen who died owning property which was subject to restrictions against alienation pursuant to Federal law in effect at the time of issuance of such probate order, where notice was not given as required by Federal statutes in effect at the time;

(3) Any conveyance of record, including an oil and gas or mineral lease, of an interest in individual trust property or property which was subject to restrictions against alienation pursuant to Federal statutes in effect at the time of the conveyance executed by a person who was an heir or purported heir of the decedent, if such conveyance was approved by a county or district court in Oklahoma more than 30 years before the effective date of this Act but where no judicial or administrative order of record was issued before or after such approval finding that such person was in fact the heir to the interest conveyed;

(4) Any conveyance of record, including an oil and gas or mineral lease, of individual trust property or property which was subject to restrictions against alienation pursuant to Federal statutes in effect at the time of the conveyance that was approved by a county or district court in Oklahoma or by the Secretary more than 30 years before the effective date of this Act, where--

(A) approval was not in compliance with the notice requirements of Federal statutes governing the conveyance of said individual trust property or said restricted property; or

(B) approval was given by a county or district court in Oklahoma of a conveyance of the

property by a personal representative in a probate action over which said county or district court possessed jurisdiction, without compliance with Federal statutes governing the conveyance of the property in effect at the time of the conveyance;

(5) Any conveyance of record, including an oil and gas or mineral lease, of individual trust property or property which was subject to restrictions against alienation pursuant to Federal statutes in effect at the time of the conveyance that was approved by a county or district court in Oklahoma or by the Secretary at any time before the effective date of this Act, where--

(A) approval was given by the Secretary where the Federal statutes governing the conveyance of the property required approval by a county or district court in Oklahoma; or

(B) approval was given by a county or district court in Oklahoma where the Federal statutes governing the conveyance of the property in effect at the time of the conveyance required approval of the Secretary.

(b) NOTICE OF CLAIM; SERVICE AND RECORDING- Any claimant described in subsection (a) must serve written notice of his or her claim by certified mail, return receipt requested, on the Regional Director, and file the notice of claim, together with a copy of the return receipt showing delivery to the office of the Regional Director, in the office of county clerk in the county or counties wherein the property is located. The notice shall not be complete for the purposes of this section until it has been served on the Regional Director and filed of record as herein provided. The notice of claim shall set forth the following:

(1) The claimant's name and mailing address.

(2) An accurate and full description of all property affected by such notice, which description -shall be set forth in particular terms and not be general inclusions; but if said claim is founded upon a recorded instrument, then the description in such notice may be the same as that contained in such recorded instrument.

(3) A specific reference to or description of each title transaction in the chain of title that the claimant is attempting to validate pursuant to this section.

(4) A list of all documents of record that are part of the claimant's unbroken chain of title, copies of which documents shall be served with the notice.

(c) RESPONSE DEADLINE; EXTENSION- The Regional Director shall have 60 days from date of receipt of the notice of claim in which to notify the claimant in writing that the Regional Director exercises discretionary authority to object to the claim for any reason; provided, the Regional Director shall be entitled to an automatic extension of time of 60 days in which to object to the claim upon the Regional Director's service of written notice of extension on the claimant within the initial 60-day response period.

(d) NOTICE OF OBJECTION; REMEDIES- The Regional Director shall send the notice of objection and any notice of extension of time to the claimant by certified mail to the address set forth in the claimant's notice to the Director. The Director's notice of objection or notice of extension of time shall include a description of the property and shall be effective on the date of mailing. The Director shall file the notice of objection or notice of extension of time in the office of the county clerk for the county or counties wherein the property is located within 30 days after the date of mailing of the notice to the claimant. If the Regional Director notifies the claimant that the Regional Director objects to the claim, such decision shall be final for the Department and the claimant's sole remedies shall be to file an action to cure title defects pursuant to section 303 of this Act or to request a determination of heirs in accordance with section 302 of this Act.

(e) UNDISPUTED CLAIM- If, in the exercise of discretion, the Regional Director does not object to the claim, then the Regional Director may notify the claimant that the matter is not in dispute. Failure of the Regional Director to notify the claimant of the Regional Director's objection within the initial 60-day period, or within the 60-day extension period if notice of an extension was given, shall constitute acceptance of the claim. If the Director does not file an objection to the claim of record within the time required by subsection (d), the title transaction described in the claimant's notice shall be deemed validated and shall not be considered a defect in the muniments of the claimant's title based on or arising from Federal statutes governing the conveyance of restricted property in effect at the time of the transaction, provided that no written notice of objection is timely filed by other parties in accordance with subsection (f) of this section.

(f) NOTICE OF OBJECTION BY OTHER PARTIES TO APPLICABILITY OF THIS SECTION- Any person claiming ownership of an interest in property the record title to which includes a title transaction described in subsection (a) of this section may prevent the application of subsections (a) through (e) to said interest by filing for record in the office of the county clerk for the county or counties wherein the property in question is located, no later than 3 years after the effective date of this Act, a written notice of objection in the form of a declaration made under oath setting forth the following:

(1) The declarant's name and mailing address.

(2) An accurate and full description of all of the declarant's property interests to be affected by such notice, which description shall be set forth in particular terms and not be general inclusions; but if said declarant's claim to ownership is founded upon a recorded instrument, then the description in such notice may be the same as that contained in such recorded instrument.

(3) A statement that the declarant claims in good faith to be the owner of an interest in the property described in the notice and that the declarant objects to the operation of this section with respect to any title transaction that would otherwise be subject to validation under this section.

(g) INTERESTS OF HEIRS OF LESS THAN HALF-BLOOD- Nothing in this Act shall be construed to invalidate--

(1) any conveyance of record, including a surface, oil and gas, or mineral lease, of an interest in

property made prior to the effective date of this Act by an heir of a deceased Indian citizen without district court approval where such heir was of less than one-half degree of Indian blood, even though the property was held in restricted status immediately prior to the decedent Indian citizen's death; or

(2) any other encumbrance that attached prior to the effective date of this Act to an interest in property of an heir of a deceased Indian citizen where such heir was of less than one-half degree of Indian blood, even though the property was held in restricted status immediately prior to the decedent Indian citizen's death.

(h) TERMS- For purposes of this section:

(1) A person shall be deemed to have an unbroken chain of title when the official public records, including probate and other official public records, as well as records in the county clerk's office, disclose a conveyance or other title transaction of record not less than 30 years prior to the effective date of this Act, which said conveyance or other title transaction purports to create such interest, either in--

(A) the person claiming such interest; or

(B) some other person from whom, by 1 or more conveyances or other title transactions of record, such purported interest has become vested in the person claiming such interest; with nothing appearing of record, in either case, purporting to divest such claimant of such purported interest.

(2) The term recording, when applied to the official public records of any officer or court, includes filing with the officer or court.

SEC. 403. REPEALS.

(a) IN GENERAL- The following provisions are repealed:

(1) The Act of August 11, 1955 (69 Stat. 666, chapter 786).

(2) Section 2 of the Act of August 12, 1953 (67 Stat. 558, chapter 409).

(3) Sections 1 through 5 and 7 through 13 of the Act of August 4, 1947 (61 Stat. 731, chapter 458).

(4) The Act of February 11, 1936 (25 U.S.C. 393a).

(5) The Act of January 27, 1933 (47 Stat. 777, chapter 23).

(6) Sections 1, 2, 4, and 5 of the Act of May 10, 1928 (45 Stat. 495, chapter 517).

(7) The Act of April 12, 1926 (44 Stat. 239, chapter 115).

(8) Sections 1 and 2 of the Act of June 14, 1918 (25 U.S.C. 375 and 355).

(9) Sections 1 through 3 and 6 through 12 of the Act of May 27, 1908 (35 Stat. 312, chapter 199).

(10) Section 23 of the Act of April 26, 1906 (34 Stat. 137, chapter 1876).

(b) OTHER ACTS-

(1) IN GENERAL- Not later than 6 months after the effective date of this Act, the Secretary shall prepare and submit to Congress a list of other provisions of law that--

(A) expressly reference property of the Five Nations or of Five Nations' citizens and that are in conflict with the provisions of this Act; or

(B) are of general applicability with respect to the property of Indian tribes and of individual Indians and that are in conflict with this Act.

(2) TECHNICAL AMENDMENTS-

(A) Section 28 of the Act of April 26, 1906 (34 Stat. 137, chapter 1876) is amended--

(i) by striking the first proviso; and

(ii) by striking `Provided further' and inserting `Provided'.

(B) Section 6(c) of the Act of August 4, 1947 (61 Stat. 733, chapter 458) is amended in the first sentence by striking `of one-half or more Indian blood'.

(C) Section 1 of the Act of October 22, 1970 (84 Stat. 1091), is amended by striking the last sentence.

SEC. 404. SECRETARIAL TRUST RESPONSIBILITY.

Nothing in this Act shall be construed to waive, modify, or diminish in any way the trust responsibility of the United States over restricted property.

SEC. 405. REPRESENTATION BY ATTORNEYS FOR THE DEPARTMENT OF THE INTERIOR.

Attorneys of the Department of the Interior may--

(1) represent the Secretary in any actions filed in the State courts of Oklahoma involving restricted property;

(2) when acting as counsel for the Secretary, provide information to all Indian citizens owning restricted property (and to private counsel for such citizens, if any) regarding their legal rights with respect to the restricted property owned by such citizens;

(3) at the request of any Indian citizen owning restricted property, take such action as may be necessary to cancel or annul any deed, conveyance, mortgage, lease, contract to sell, power of attorney, or any other encumbrance of any kind or character, made or attempted to be made or executed in violation of this Act or any other Federal law, and take such action as may be necessary to assist such Indian citizen in obtaining clear title, acquiring possession, and retaining possession of restricted property; and

(4) in carrying out paragraph (3), refer proposed actions to be filed in the name of the United States in a district court of the United States to the United States Attorney for that district, and provide assistance in an of-counsel capacity in those actions that the United States Attorney elects to prosecute.

SEC. 406. FILING REQUIREMENTS; CONSTRUCTIVE NOTICE.

The following orders or other decision documents which concern restricted property and are issued after the effective date of this Act by the Secretary, by an administrative law judge, or by any other authorized person pursuant to authority of this Act shall be filed in the Regional Office and in the office of the county clerk in the county where such restricted property is located: any order or other decision document removing restrictions, imposing restrictions, approving conveyances, approving leases, approving voluntary partitions, approving mortgages, probating wills or determining heirs, and any notice issued by the Regional Director pursuant to section 402 of this Act. The filing of said documents at the Regional Office shall constitute constructive notice to the public of the effect of said documents filed. The Secretary shall have authority to certify the authenticity of copies of such documents and title examiners shall be entitled to rely on said authenticated copies for the purpose of determining marketability of title to the property described therein.

END