Trust Reform Progresses in 2004; Earned Income Tax Credit

Spring 2004

This article originally appeared in the Groundhog Day column in News From Native California, Volume 17, Number 3.

More than two years have passed since the Department of the Interior (DOI) unveiled its trust reform reorganization plan that would have created a new bureau, the Bureau of Indian Trust Assets Management, identified by its acronym BITAM, pronounced by many as "bite 'em." The proposed alternative "To-Be" Trust Business Model does not create a new bureau but continues the proposal to divide trust processes between the Bureau of Indian Affairs (BIA) and another office within DOI, the Office of the Special Trustee for American Indians (OST).

"To-Be" Trust Business Model

When the BIA resurfaces after the OST finalizes and implements the re-engineered "To-Be" Trust Business Model, will the BIA see its shadow? Will the BIA be lost in the shadow of the OST? Will the BIA be significant enough to cast a shadow? The latest draft proposal maintains a significant amount of trust responsibilities and services at the BIA while transferring "Financial Operations" to the OST and coordinating "Beneficiary Relationships and Development Management" between the BIA and the OST. Indian country must continue to scrutinize the "To-Be" Trust Business Model as OST moves towards finalizing it by March 31, 2004 and implementing it by May 31, 2004.

The OST recently wrapped up its consultations and though the OST requested comments by the end of January, it will continue to consider comments received after that deadline and will attempt to incorporate suggested improvements. The "To-Be" Trust Business Model is divided into five major trust business processes. In addition to the "Financial Operations" and "Beneficiary Relationship Development Management" processes mentioned above, the other major trust business processes identified in the "To-Be" Trust Business Model are: Ownership; Land and Natural Resources Planning; and Land and Natural Resources Use and Management, all of which are proposed to remain within the BIA. This is encouraging, especially in light of previous information that suggested that all five trust business processes would be assigned to the OST. The "To-Be" Trust Business Model is available at http://www.trustfix.com (opens new window). It is also available along with the comment form at http://www.ost.doi.gov/trustreengineer/TOBE.html (opens new window), where the Model is organized and presented by process component: process flow diagram, process template, process GAP analysis, and process decomposition.

California Indians must remain vigilant as OST revises, finalizes and implements the "To-Be" Trust Business Model in order to ensure that scarce resources are properly allocated to OST from the already underfunded, understaffed and undertrained BIA offices. Despite major business processes remaining within the BIA, concerns continue to exist as the reassignment of trust responsibilities and trust processes from the BIA to the OST may result in a disproportionate reallocation of resources, attention and priorities away from the critical and vital trust services and processes of the BIA. When reviewing the "To-Be" Trust Business Model, one has to remember what it addresses, what it focuses on, and what it may ignore, neglect, or diminish. The "To-Be" Trust Business Model is focused on reforming and improving the management of Indian fiduciary trust assets. It does not, however, address the improvement of trust services that are also vital to the survival of our Indian communities - health care, education, social services, law enforcement, etc.

Indeed, California Indians and all of Indian country must view the latest developments with cautious optimism in light of the many factors which affect decision-making in Washington, D.C. One obvious caution sign is OST's listing of challenges facing DOI in its administration of the trust: "The expectations of beneficiaries and employees may exceed the Indian Trust mandate or capability of the Trustee to deliver."

Update on the American Indian Probate Reform Act of 2004, S. 1721 

Early last summer, we informed you about California Indian Legal Services' (CILS) involvement in drafting amendments to the Indian Land Consolidation Act (ILCA) and averting the disaster that the 2000 amendments threaten. This has been a high priority throughout Indian country as well as in Congress and the Administration as OST identified another challenge facing DOI in its administration of the trust as: The number of fractionated interests in land assets, which are growing at an exponential rate, and the number of IIM accounts that must be managed have overwhelmed and excessively complicated the existing manual and automated processes and systems. We are happy to report that on January 28, 2004, California Indians took another step toward affirming our unique and special history and status and protecting the limited trust and restricted fee lands in California when the Senate Committee on Indian Affairs reported S. 1721, the American Indian Probate Reform Act of 2004, favorably out of the Committee. This action by the Senate Committee on Indian Affairs sends S. 1721 back to the full Senate for consideration.

S. 1721 amends and redresses the limited definition of "Indian" and the restrictions on owners' rights to pass their interests to their lineal descendants in trust or restricted status that would otherwise be imposed if the 2000 amendments to the ILCA are certified and made effective. Recognizing the unique and special history and status of California Indians, S. 1721 incorporates a specific California Indian definition that is extremely protective of the rights of California Indians. If passed into law, S.1721 will provide greater protection to California trust lands than those that existed even before the 2000 amendments to ILCA.

While we are hopeful that S. 1721 will move quickly on the Senate floor, through the House, including the committee with jurisdiction, the House Committee on Resources, and on to the President for his signature, there is a possibility that S. 1721 will be incorporated into an Indian omnibus bill along with dozens of other Indian bills near the end of this second session of the 108th Congress. When the second session of a Congress ends, all pending bills before the House and Senate expire and require re-introduction during a subsequent Congress for further consideration.

The last Indian omnibus bill passed at the end of the 106th Congress in 2000. The Indian omnibus bill compiled towards the end of the 107th Congress cleared the Senate on its last day in session in November 2002 and expired two days later when the House adjourned without passing the bill. The Senate has set October 1, 2004 as its target adjournment date. During this presidential election year, Congress is likely to adjourn on time in order to afford its members who are up for re-election to return home and campaign before their constituents.

California Indians must press for early passage of S. 1721 in order to stop the threat of the 2000 amendments to the ILCA and to affirm the unique and special history and status of California Indians.

Claim Your Earned Income Tax Credit 

Tax season is here! And taxpayers often overlook a simple way in which they can get more money back from the Internal Revenue Service (IRS). The Earned Income Tax Credit (EITC) is a credit the IRS provides to taxpayers who are low-income workers and students. This credit usually works to raise the amount of tax return money a taxpayer gets back. If they qualify, for example, a family who filed their 2003 tax return could get as much as $4204 back. To help California Indians with this tax credit, CILS is offering assistance to California taxpayers. CILS can assist taxpayers to find out if they qualify for the EITC, and if they qualify, CILS may be able to help them complete their tax forms. For those who do not qualify for the EITC, CILS can still provide a list of free or low-cost tax assistance programs which may be able to help complete other tax forms. For more information, taxpayers should call 1-800-829-0284 and ask for an intake worker or visit the CILS website at http://www.calindian.org.

About News From Native California

News from Native California is a quarterly magazine devoted to California Indian culture. They have been publishing for fifteen years and currently have a circulation of about 5,000 copies per issue. With its calendar of events, news roundup, feature articles, and regular columns on art, language, traditional skills, grants, and legal concerns, News has kept people informed and at times even inspired. They also sponsor performances, workshops, and other events, as well as several benefits for the Indian community each year, and serve informally as a center for information and connection. To get more information, request a free sample copy of the magazine, or subscribe, please call our offices at (510) 549-2802, email margaret@heydaybooks.com, or visit their website at  http://www.heydaybooks.com/news (opens new window).

Back

To view some of these documents, you will need Adobe Reader.  Click on the icon below to download Adobe Reader for free.