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`SEC. 405. REVIEW AND AUDIT BY SECRETARY.

`(a) REQUIREMENTS UNDER CHAPTER 75 OF TITLE 31, UNITED STATES CODE- An entity designated by an Indian tribe as a housing entity shall be treated, for purposes of chapter 75 of title 31, United States Code, as a non-Federal entity that is subject to the audit requirements that apply to non-Federal entities under that chapter.

`(b) ADDITIONAL REVIEWS AND AUDITS-

`(1) IN GENERAL- In addition to any audit or review under subsection (a), to the extent the Secretary determines such action to be appropriate, the Secretary may conduct an audit or review of a recipient in order to--

`(A) determine whether the recipient--

`(i) has carried out--

`(I) eligible activities in a timely manner; and

`(II) eligible activities and certification in accordance with this Act and other applicable law;

`(ii) has a continuing capacity to carry out eligible activities in a timely manner; and

`(iii) is in compliance with the Indian housing plan of the recipient; and

`(B) verify the accuracy of information contained in any performance report submitted by the recipient under section 404.

`(2) ON-SITE VISITS- To the extent practicable, the reviews and audits conducted under this subsection shall include on-site visits by the appropriate official of the Department of Housing and Urban Development.

`(c) REVIEW OF REPORTS-

`(1) IN GENERAL- The Secretary shall provide each recipient that is the subject of a report made by the Secretary under this section notice that the recipient may review and comment on the report during a period of not less than 30 days after the date on which notice is issued under this paragraph.

`(2) PUBLIC AVAILABILITY- After taking into consideration any comments of the recipient under paragraph (1), the Secretary--

`(A) may revise the report; and

`(B) not later than 30 days after the date on which those comments are received, shall make the comments and the report (with any revisions made under subparagraph (A)) readily available to the public.

`(d) EFFECT OF REVIEWS- Subject to section 401(a), after reviewing the reports and audits relating to a recipient that are submitted to the Secretary under this section, the Secretary may adjust the amount of a grant made to a recipient under this Act in accordance with the findings of the Secretary with respect to those reports and audits.'.

(g) ALLOCATION FORMULA- Section 302(d)(1) of the Native American Housing Assistance and Self-Determination Act of 1996 (25 U.S.C. 4152(d)(1)) is amended--

(1) by striking `The formula,' and inserting the following:

`(A) IN GENERAL- Except with respect to an Indian tribe described in subparagraph (B), the formula'; and

(2) by adding at the end the following:

`(B) CERTAIN INDIAN TRIBES- With respect to fiscal year 2001 and each fiscal year thereafter, for any Indian tribe with an Indian housing authority that owns or operates fewer than 250 public housing units, the formula shall provide that if the amount provided for a fiscal year in which the total amount made available for assistance under this Act is equal to or greater than the amount made available for fiscal year 1996 for assistance for the operation and modernization of the public housing referred to in subparagraph (A), then the amount provided to that Indian tribe as modernization assistance shall be equal to the average annual amount of funds provided to the Indian tribe (other than funds provided as emergency assistance) under the assistance program under section 14 of the United States Housing Act of 1937 (42 U.S.C. 1437l) for the period beginning with fiscal year 1992 and ending with fiscal year 1997.'.

(h) HEARING REQUIREMENT- Section 401(a) of the Native American Housing Assistance and Self-Determination Act of 1996 (25 U.S.C. 4161(a)) is amended--

(1) by redesignating paragraphs (1) through (4) as subparagraphs (A) through (D), respectively, and realigning such subparagraphs (as so redesignated) so as to be indented 4 ems from the left margin;

(2) by striking `Except as provided' and inserting the following:

`(1) IN GENERAL- Except as provided';

(3) by striking `If the Secretary takes an action under paragraph (1), (2), or (3)' and inserting the following:

`(2) CONTINUANCE OF ACTIONS- If the Secretary takes an action under subparagraph (A), (B), or (C) of paragraph (1)'; and

(4) by adding at the end the following:

`(3) EXCEPTION FOR CERTAIN ACTIONS-

`(A) IN GENERAL- Notwithstanding any other provision of this subsection, if the Secretary makes a determination that the failure of a recipient of assistance under this Act to comply substantially with any material provision (as that term is defined by the Secretary) of this Act is resulting, and would continue to result, in a continuing expenditure of Federal funds in a manner that is not authorized by law, the Secretary may take an action described in paragraph (1)(C) before conducting a hearing.

`(B) PROCEDURAL REQUIREMENT- If the Secretary takes an action described in subparagraph (A), the Secretary shall--

`(i) provide notice to the recipient at the time that the Secretary takes that action; and

`(ii) conduct a hearing not later than 60 days after the date on which the Secretary provides notice under clause (i).

`(C) DETERMINATION- Upon completion of a hearing under this paragraph, the Secretary shall make a determination regarding whether to continue taking the action that is the subject of the hearing, or take another action under this subsection.'.

(i) PERFORMANCE AGREEMENT TIME LIMIT- Section 401(b) of the Native American Housing Assistance and Self-Determination Act of 1996 (25 U.S.C. 4161(b)) is amended--

(1) by striking `If the Secretary' and inserting the following:

`(1) IN GENERAL- If the Secretary';

(2) by striking `(1) is not' and inserting the following:

`(A) is not';

(3) by striking `(2) is a result' and inserting the following:

`(B) is a result';

(4) in the flush material following paragraph (1)(B), as redesignated by paragraph (3) of this subsection--

(A) by realigning such material so as to be indented 2 ems from the left margin; and

(B) by inserting before the period at the end the following: `, if the recipient enters into a performance agreement with the Secretary that specifies the compliance objectives that the recipient will be required to achieve by the termination date of the performance agreement'; and

(5) by adding at the end the following:

`(2) PERFORMANCE AGREEMENT- The period of a performance agreement described in paragraph (1) shall be for 1 year.

`(3) REVIEW- Upon the termination of a performance agreement entered into under paragraph (1), the Secretary shall review the performance of the recipient that is a party to the agreement.

`(4) EFFECT OF REVIEW- If, on the basis of a review under paragraph (3), the Secretary determines that the recipient--

`(A) has made a good faith effort to meet the compliance objectives specified in the agreement, the Secretary may enter into an additional performance agreement for the period specified in paragraph (2); and

`(B) has failed to make a good faith effort to meet applicable compliance objectives, the Secretary shall determine the recipient to have failed to comply substantially with this Act, and the recipient shall be subject to an action under subsection (a).'.

(j) LABOR STANDARDS- Section 104(b) of the Native American Housing Assistance and Self-Determination Act of 1996 (25 U.S.C. 4114(b) is amended--

(1) in paragraph (1), by striking `Davis -Bacon Act (40 U.S.C. 276a-276a-5)' and inserting `Act of March 3, 1931 (commonly known as the Davis -Bacon Act; chapter 411; 46 Stat. 1494; 40 U.S.C 276a et seq.)'; and

(2) by adding at the end the following new paragraph:

`(3) APPLICATION OF TRIBAL LAWS- Paragraph (1) shall not apply to any contract or agreement for assistance, sale, or lease pursuant to this Act, if such contract or agreement is otherwise covered by one or more laws or regulations adopted by an Indian tribe that requires the payment of not less than prevailing wages, as determined by the Indian tribe.'.

(k) TECHNICAL AND CONFORMING AMENDMENTS-

(1) TABLE OF CONTENTS- Section 1(b) of the Native American Housing Assistance and Self-Determination Act of 1996 (25 U.S.C. 4101 note) is amended in the table of contents--

(A) by striking the item relating to section 206; and

(B) by striking the item relating to section 209 and inserting the following:

`209. Noncompliance with affordable housing requirement.'.

(2) CERTIFICATION OF COMPLIANCE WITH SUBSIDY LAYERING REQUIREMENTS- Section 206 of the Native American Housing Assistance and Self-Determination Act of 1996 (25 U.S.C. 4136) is repealed.

(3) TERMINATIONS- Section 502(a) of the Native American Housing Assistance and Self-Determination Act of 1996 (25 U.S.C. 4181(a)) is amended by adding at the end the following: `Any housing that is the subject of a contract for tenant-based assistance between the Secretary and an Indian housing authority that is terminated under this section shall, for the following fiscal year and each fiscal year thereafter, be considered to be a dwelling unit under section 302(b)(1).'.

TITLE XI--INDIAN EMPLOYMENT, TRAINING AND RELATED SERVICES

SEC. 1101. SHORT TITLE.

This title may be cited as the `Indian Employment, Training, and Related Services Demonstration Act Amendments of 2000'.

SEC. 1102. FINDINGS, PURPOSES.

(a) FINDINGS- The Congress finds that--

(1) Indian tribes and Alaska Native organizations that have participated in carrying out programs under the Indian Employment, Training, and Related Services Demonstration Act of 1992 (25 U.S.C. 3401 et seq.) have--

(A) improved the effectiveness of employment-related services provided by those tribes and organizations to their members;

(B) enabled more Indian and Alaska Native people to prepare for and secure employment;

(C) assisted in transitioning tribal members from welfare to work; and

(D) otherwise demonstrated the value of integrating employment, training, education and related services.

(E) the initiatives under the Indian Employment, Training, and Related Services Demonstration Act of 1992 should be strengthened by ensuring that all Federal programs that emphasize the value of work may be included within a demonstration program of an Indian or Alaska Native organization; and

(F) the initiatives under the Indian Employment, Training, and Related Services Demonstration Act of 1992 should have the benefit of the support and attention of the officials with policymaking authority of--

(i) the Department of the Interior; or

(ii) other Federal agencies that administer programs covered by the Indian Employment, Training, and Related Services Demonstration Act of 1992.

(b) PURPOSES- The purposes of this title are to demonstrate how Indian tribal governments can integrate the employment, training, and related services they provide in order to improve the effectiveness of those services, reduce joblessness in Indian communities, foster economic development on Indian lands, and serve tribally-determined goals consistent with the policies of self-determination and self-governance.

SEC. 1103. AMENDMENTS TO THE INDIAN EMPLOYMENT, TRAINING AND RELATED SERVICES DEMONSTRATION ACT OF 1992.

(a) DEFINITIONS- Section 3 of the Indian Employment, Training, and Related Services Demonstration Act of 1992 (25 U.S.C. 3402) is amended--

(1) by redesignating paragraphs (1) through (3) as paragraphs (2) through (4), respectively; and

(2) by inserting before paragraph (2) the following:

`(1) FEDERAL AGENCY- The term `federal agency' has the same meaning given the term `agency' in section 551(1) of title 5, United States Code.'.

(b) PROGRAMS AFFECTED- Section 5 of the Indian Employment, Training, and Related Services Demonstration Act of 1992 (25 U.S.C. 3404) is amended by striking `job training, tribal work experience, employment opportunities, or skill development, or any program designed for the enhancement of job opportunities or employment training' and inserting the following: `assisting Indian youth and adults to succeed in the workforce, encouraging self-sufficiency, familiarizing Indian Youth and adults with the world of work, facilitating the creation of job opportunities and any services related to these activities'.

(c) PLAN REVIEW- Section 7 of the Indian Employment, Training, and Related Services Demonstration Act of 1992 (25 U.S.C. 3406) is amended--

(1) by striking `Federal department' and inserting `Federal agency';

(2) by striking `Federal departmental' and inserting `Federal agency';

(3) by striking `department' each place it appears and inserting `agency'; and

(4) in the third sentence, by inserting `statutory requirement,', after `to waive any'.

(d) PLAN APPROVAL- Section 8 of the Indian Employment, Training, and Related Services Demonstration Act of 1992 (25 U.S.C. 3407) is amended--

(1) in the first sentence, by inserting before the period at the end the following; `, including any request for a waiver that is made as part of the plan submitted by the tribal government'; and

(2) in the second sentence, by inserting before the period at the end the following: `, including reconsidering the disapproval of any waiver requested by the Indian tribe'.

(e) JOB CREATION ACTIVITIES AUTHORIZED- Section 9 of the Indian Employment, Training, and Related Services Demonstration Act of 1992 (25 U.S.C. 3407) is amended--

(1) by inserting `(a) IN GENERAL- ' before `The plan submitted'; and

(2) by adding at the end the following:

`(b) JOB CREATION OPPORTUNITIES-

`(1) IN GENERAL- Notwithstanding any other provisions of law, including any requirement of a program that is integrated under a plan under this Act, a tribal government may use a percentage of the funds made available under this Act (as determined under paragraph (2)) for the creation of employment opportunities, including providing private sector training placement under section 10.

`(2) DETERMINATION OF PERCENTAGE- The percentage of funds that a tribal government may use under this subsection is the greater of--

`(A) the rate of unemployment in the service area of the tribe up to a maximum of 25 percent; or

`(B) 10 percent.

`(c) LIMITATION- The funds used for an expenditure described in subsection (a) may only include funds made available to the Indian tribe by a Federal agency under a statutory or administrative formula.'.

SEC. 1104. REPORT ON EXPANDING THE OPPORTUNITIES FOR PROGRAM INTEGRATION.

Not later than one year after the date of enactment of this title, the Secretary, the Secretary of Health and Human Services, the Secretary of Labor, and the tribes and organizations participating in the integration initiative under this title shall submit a report to the Committee on Indian Affairs of the Senate and the Committee on Resources of the House of Representatives on the opportunities for expanding the integration of human resource development and economic development programs under this title, and the feasibility of establishing Joint Funding Agreements to authorize tribes to access and coordinated funds and resources from various agencies for purposes of human resources development, physical infrastructure development, and economic development assistance in general. Such report shall identify programs or activities which might be integrated and make recommendations for the removal of any statutory or other barriers to such integration.

TITLE XII--NAVAJO NATION TRUST LAND LEASING

SEC. 1201. SHORT TITLE.

This title may be cited as the `Navajo Nation Trust Land Leasing Act of 2000'.

SEC. 1202. CONGRESSIONAL FINDINGS AND DECLARATION OF PURPOSES.

(a) FINDINGS- Recognizing the special relationship between the United States and the Navajo Nation and its members, and the Federal responsibility to the Navajo people, Congress finds that--

(1) the third clause of section 8, Article I of the United States Constitution provides that `The Congress shall have Power . . to regulate Commerce . . with Indian tribes', and, through this and other constitutional authority, Congress has plenary power over Indian affairs;

(2) Congress, through statutes, treaties, and the general course of dealing with Indian tribes, has assumed the responsibility for the protection and preservation of Indian tribes and their resources;

(3) the United States has a trust obligation to guard and preserve the sovereignty of Indian tribes in order to foster strong tribal governments, Indian self-determination, and economic self-sufficiency;

(4) pursuant to the first section of the Act of August 9, 1955 (25 U.S.C. 415), Congress conferred upon the Secretary of the Interior the power to promulgate regulations governing tribal leases and to approve tribal leases for tribes according to regulations promulgated by the Secretary;

(5) the Secretary has promulgated the regulations described in paragraph (4) at part 162 of title 25, Code of Federal Regulations;

(6) the requirement that the Secretary approve leases for the development of Navajo trust lands has added a level of review and regulation that does not apply to the development of non-Indian land; and

(7) in the global economy of the 21st century, it is crucial that individual leases of Navajo trust lands not be subject to Secretarial approval and that the Navajo Nation be able to make immediate decisions over the use of Navajo trust lands.

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