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P.L. 93-638 Contracting and Compacting
Indian Trust
Self-Governance and Self-Determination:
Managing Your OST Trust Programs
Public Law 93-638, as amended
Appraisal Services and Beneficiary Processes Program
Self-governance and self-determination programs
In the early 1970s, Congress passed the Indian Self Determination and Education Assistance Act that allowed Indian Tribes and Tribal Organizations to acquire increased control over the management of federal programs that impact their members, resources, and governments. The Department of the Interior (DOI) has long supported tribal sovereignty, self-governance, and self-determination efforts, and continues to encourage tribes to assume the management of eligible programs through self-governance compacts or self-determination contracts. These agreements are referred to as “638 compacts and contracts.”
In 1994, the Office of the Special Trustee for American Indians (OST) was created with the passage of the American Indian Trust Funds Management Reform Act. OST’s responsibilities include management and administration of two programs that are eligible for tribal contracting or compacting:
*Real estate appraisal services
*Beneficiary Processes Program, financial trust services.
Tribal trust asset appraisal services:
Appraisals, or value assessments, are important elements to the many different types of trust land usage agreements. Some of the transactions that require appraisals include commercial, industrial, recreational, and other leases; rights-of-way permits; land sales and land exchanges; grazing and range permits; and assessment of trespass damages. Appraisers place a value on trust assets according to professional standards and regulatory requirements, so Indian land owners receive a fair value. Tribes, or a consortium of tribes, can administer their own appraisal services through an agreement negotiated with OST.
Beneficiary Processes Program financial trust services:
For every account held in trust by the United States, OST is responsible for financial trust services such as collection of income, accurate accounting, disbursal of funds, and maintenance of current beneficiary information. These roles are managed by OST’s Office of Trust Funds Management. Tribes, or a consortium of tribes, can contract or compact to assume a portion of the administration of Individual Indian Money (IIM) financial trust services through an agreement negotiated with OST.
Who is Eligible?
OST has a fiduciary responsibility for the management of Indian trust assets. To assume the operation of programs currently managed by OST, a tribe must meet federal requirements, and supply certain information to OST.
These requirements may include:
*A request by a Tribal resolution to assume programs;
*Successful completion of a planning phase and planning report;
*A demonstration of financial stability and financial management capability for the previous three fiscal years.
The full list of requirements is listed in the Code of Federal Regulations, Title 25, parts 900 and 1000. For a copy, call OST’s Office of External Affairs, or go to the Government Printing Office website, www.gpoaccess.gov/ecfr, and scroll to Title 25-Indians.
OST looks forward to working with tribes interested in contracting or compacting programs in the spirit of the government-to-government relationship. OST will negotiate specific roles and responsibilities with tribes that are interested in assuming OST programs.
Contracts and compacts are very similar:
Self-Determination Contracts are authorized under the 1975 Indian Self Determination and Education Assistance Act.
Self-Governance Compacts are made possible by 1994 amendments to the 1975 Indian Self Determination and Education Assistance Act.
Both contracts and compacts are agreements between a tribe and the government for the tribe to assume responsibilities for programs, functions, and services, or activities that would otherwise be carried out by the federal government.
Tribes and the government negotiate Annual Funding Agreements in accordance with the contracts and compacts. The funding agreements have detailed parameters and identify funding per program. Tribes may assume many programs at one time and separate funding is granted for each program.
For more information on participation, and to begin the process, see the Code of Federal Regulations, and contact OST’s Office of External Affairs.
OST strongly supports and encourages tribal self-determination, and tribal sovereignty. The Office of External Affairs supports OST’s contracting and compacting initiatives. Interested tribes are invited to contact OST’s Office of External Affairs for more information.
Washington D.C.:
OST, Office of External Affairs
1849 C Street NW, Suite 5140
Washington D.C., 20240
(202) 208-3460
Fax: (202) 208-7545
www.doi.gov/ost
Albuquerque, New Mexico:
OST, Office of External Affairs
4400 Masthead Street, Suite 300
Albuquerque, NM 87109
(505) 816-1081
Fax: (505) 816-1319
www.doi.gov/ost
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