Title Evidence for Trust Land Acquisitions, 30173-30178 [2016-11489]

Download as PDF Federal Register / Vol. 81, No. 94 / Monday, May 16, 2016 / Rules and Regulations Lhorne on DSK30JT082PROD with RULES approval of an AMOC, provided the RC steps, including substeps and identified figures, can still be done as specified, and the airplane can be put back in an airworthy condition. This rule will be effective May 16, 2016. ADDRESSES: Martha P. Rico, Secretary to the Board, Railroad Retirement Board, (j) Related Information 844 N. Rush Street, Chicago, Illinois For more information about this AD, 60611–2092. contact Roger Durbin, Aerospace Engineer, FOR FURTHER INFORMATION CONTACT: Airframe Branch, ANM–120L, FAA, Los Marguerite P. Dadabo, Assistant General Angeles ACO, 3960 Paramount Boulevard, Lakewood, CA 90712–4137; phone: 562–627– Counsel, (312) 751–4945, TTD (312) 751–4701. 5233; fax: 562–627–5210; email: roger.durbin@faa.gov. SUPPLEMENTARY INFORMATION: The Railroad Retirement Board (Board) (k) Material Incorporated by Reference amends part 367 of the Board’s (1) The Director of the Federal Register regulations, Recovery of Debts Owed to approved the incorporation by reference the United States Government by (IBR) of the service information listed in this Administrative Offset. Specifically, the paragraph under 5 U.S.C. 552(a) and 1 CFR part 51. Board amends section 367.3(a), Board (2) You must use this service information Responsibilities. Section 367.3(a) states as applicable to do the actions required by that all nontax debts over 180 days this AD, unless the AD specifies otherwise. delinquent shall be referred to the (i) Boeing Alert Service Bulletin 757– Department of the Treasury for 53A0099, dated September 18, 2014. administrative offset through the (ii) Reserved. Treasury Offset Program as required by (3) For Boeing service information identified in this AD, contact Boeing 31 U.S.C. 3716. 31 U.S.C. 3716 was Commercial Airplanes, Attention: Data & amended by the Digital Accountability Services Management, P.O. Box 3707, MC and Transparency Act (DATA Act), 2H–65, Seattle, WA 98124–2207; telephone Public Law 113–101. The DATA Act 206–544–5000, extension 1; fax 206–766– now requires agencies to refer to the 5680; Internet https:// Department of the Treasury valid, www.myboeingfleet.com. delinquent nontax debts for the purpose (4) You may view this service information of administrative offset at 120 days. The at the FAA, Transport Airplane Directorate, 1601 Lind Avenue SW., Renton, WA. For amendment to section 367.3(a) of the information on the availability of this Board’s regulation changes from 180 material at the FAA, call 425–227–1221. days to 120 days the debts referred to (5) You may view this service information the Department of the Treasury in that is incorporated by reference at the compliance with the DATA Act. National Archives and Records A proposed rule was published in the Administration (NARA). For information on the availability of this material at NARA, call Federal Register on January 21, 2015, and comments were invited (80 FR 202–741–6030, or go to: https:// www.archives.gov/federal-register/cfr/ibr2839). No comments were received. The locations.html. final rule makes no changes from the proposed rule. Issued in Renton, Washington, on May 4, The Board, with the concurrence of 2016. the Office of Management and Budget, Michael Kaszycki, has determined that this is not a Acting Manager, Transport Airplane significant regulatory action under Directorate, Aircraft Certification Service. Executive Order 12866, as amended. [FR Doc. 2016–11197 Filed 5–13–16; 8:45 am] Therefore, no regulatory impact analysis BILLING CODE 4910–13–P is required. There are no changes to the information collections associated with Part 367. RAILROAD RETIREMENT BOARD List of Subjects in 20 CFR Part 367 20 CFR Part 367 Debts, Railroad employees, Railroad RIN 3220–AB66 retirement. For the reasons set out in the Recovery of Debts Owed to the United preamble, the Railroad Retirement States Government by Administrative Board amends title 20, chapter II, Offset subchapter F, part 367 of the Code of AGENCY: Railroad Retirement Board. Federal Regulations as follows: ACTION: Final rule. PART 367—RECOVERY OF DEBTS SUMMARY: The Railroad Retirement OWED TO THE UNITED STATES Board (Board) amends its regulations by GOVERNMENT BY ADMINISTRATIVE changing from 180 days delinquent to OFFSET 120 days delinquent debts that are referred to Treasury in compliance with ■ 1. The authority citation for part 367 the DATA Act. continues to read as follows: VerDate Sep<11>2014 14:36 May 13, 2016 Jkt 238001 DATES: PO 00000 Frm 00017 Fmt 4700 Sfmt 4700 30173 Authority: 45 U.S.C. 231f(b)(5); 31 U.S.C. 3716 § 367.3 [Amended] 2. Amend § 367.3 by removing ‘‘180’’ and adding in its place ‘‘120’’ where it appears in paragraph (a). ■ Dated: May 11, 2016. By Authority of the Board. Martha P. Rico, Secretary to the Board. [FR Doc. 2016–11445 Filed 5–13–16; 8:45 am] BILLING CODE 7905–01–P DEPARTMENT OF THE INTERIOR Bureau of Indian Affairs 25 CFR Part 151 [167A2100DD/AAKC001030/ A0A501010.999900 253G] RIN 1076–AF28 Title Evidence for Trust Land Acquisitions Bureau of Indian Affairs, Interior. ACTION: Final rule. AGENCY: This rule deletes the requirement for fee-to-trust applicants to furnish title evidence that meets the ‘‘Standards for the Preparation of Title Evidence in Land Acquisitions by the United States’’ issued by the U.S. Department of Justice (DOJ), and replaces the requirement with a more targeted requirement for title evidence, because adherence to the DOJ standards is not required for acquisitions of land in trust for individual Indians or Indian tribes. DATES: This rule becomes effective on May 16, 2016. FOR FURTHER INFORMATION CONTACT: Elizabeth Appel, Director, Office of Regulatory Affairs and Collaborative Action, Office of the Assistant Secretary—Indian Affairs; telephone (202) 273–4680, elizabeth.appel@ bia.gov. SUPPLEMENTARY INFORMATION: SUMMARY: I. Overview of Rule II. Background III. Comments on the Interim Final Rule A. ‘‘Written Evidence’’ B. Alternatives to a Title Insurance Policy C. Previously Issued Title Insurance Policy D. Abstract of Title E. Marketability and Exceptions to the Title Insurance Policy F. Standards to be Used in Place of DOJ Standards G. Timing and Timelines H. Other Comments IV. Changes from Interim Final Rule to Final Rule E:\FR\FM\16MYR1.SGM 16MYR1 30174 Federal Register / Vol. 81, No. 94 / Monday, May 16, 2016 / Rules and Regulations V. Applicability of New Rule VI. Procedural Requirements A. Regulatory Planning and Review (E.O. 12866 and 13563) B. Regulatory Flexibility Act C. Small Business Regulatory Enforcement Fairness Act D. Unfunded Mandates Reform Act E. Takings (E.O. 12630) F. Federalism (E.O. 13132) G. Civil Justice Reform (E.O. 12988) H. Consultation with Indian Tribes (E.O. 13175) I. Paperwork Reduction Act J. National Environmental Policy Act K. Information Quality Act L. Effects on the Energy Supply (E.O. 13211) M. Administrative Procedure Act Lhorne on DSK30JT082PROD with RULES I. Overview of Rule This rule replaces the ‘‘Standards for the Preparation of Title Evidence in Land Acquisitions by the United States’’ issued by DOJ (DOJ standards) with a more targeted title evidence standard. Under the new standard, applicants must furnish a deed evidencing that the applicant has ownership, or a written sales contract or written statement from the transferor that the applicant will have ownership. Applicants must also submit either (1) a current title insurance commitment; or (2) the policy of title insurance issued at the time of the applicant’s or current owner’s acquisition of the interest and an abstract dating from the time the interest was acquired. This rule does not preclude applicants from having title confirmed pursuant to all requirements of DOJ standards (as those standards apply in the land-into-trust context) if the applicant so chooses. The rule continues the current requirement that title evidence must be submitted and reviewed by the Department of the Interior (Department) before title is transferred. The rule continues to provide that the Secretary has discretion to require the elimination of any liens, encumbrances, or infirmities prior to acceptance in trust. The rule also continues the practice of requiring the elimination of any legal claims, including but not limited to liens, mortgages, and taxes, determined by the Secretary to make title unmarketable, prior to acceptance in trust. II. Background Section 5 of the Indian Reorganization Act (IRA) is the primary authority providing the Secretary of the Interior (Secretary) with discretion to acquire land in trust for individual Indians or Indian tribes. See 25 U.S.C. 465. Congress has also enacted other statutes that authorize the discretionary acquisition of lands for specific tribes. VerDate Sep<11>2014 14:36 May 13, 2016 Jkt 238001 The Department’s regulations at 25 CFR part 151 establish the process for discretionary trust acquisitions pursuant to section 465 and other statutory authority. Section 151.13 of the regulations published in 1980 required the applicant to furnish title evidence meeting the DOJ standards if the Secretary determines to approve a feeto-trust application. On March 1, 2016, BIA published an interim final rule deleting the requirement for the applicant to furnish title evidence meeting DOJ standards because those standards are not required for acquisitions of land in trust for individual Indians or Indian tribes. See 81 FR 10477. On April 15, 2016, BIA delayed the effective date of the rule to May 16, 2016 to allow BIA time to publish technical revisions. See 81 FR 22183. This rule provides those technical revisions. III. Comments on the Interim Final Rule The BIA received 13 comments in response to the interim final rule, most asking questions seeking clarification of the regulatory text. Several commenters supported the rule, but requested clarification. Commenters who opposed the rule stated that the current DOJ standards are necessary to protect the public, including adjoining landowners and other third parties, and protect against conflicts of interest, and that DOJ standards are more reliable and less costly. After careful consideration of the comments and applying its own experience in reviewing fee-to-trust applications and title evidence, BIA has determined that the final rule provides sufficient standards to protect the United States. The purpose of title evidence requirements is to ensure that the Tribe has marketable title to convey to the United States, thereby protecting the United States. See Crest-DehesaGranite Hills-Harbison Canyon Subregional Planning Group v. Acting Pacific Regional Director, 61 IBIA 208, 216 (2015). The rule revisions allow for a less costly alternative to providing a title insurance policy under DOJ standards, while still ensuring sufficient evidence of good title. The following are summaries of the substantive points made in these comments, and the Department’s responses. A. ‘‘Written Evidence’’ Several commenters requested clarification of what ‘‘written evidence’’ is required by paragraphs (a)(1) and (a)(2) of the interim final rule. In paragraph (a)(1), the interim final rule required ‘‘written evidence of the PO 00000 Frm 00018 Fmt 4700 Sfmt 4700 applicant’s title or that title will be transferred to the United States on behalf of the applicant to complete the acquisition in trust.’’ In paragraph (a)(2), the interim final rule required ‘‘written evidence of how title was acquired by the applicant or current owner.’’ Commenters stated that it appeared the same evidence may satisfy both (a)(1) and (a)(2), in the form of the applicant’s deed. To clarify, the final rule specifies that the written evidence must be a deed or other conveyance instrument providing evidence of the applicant’s title. The final rule also specifies that if the applicant does not yet have title, the written evidence must be: (1) A deed or other conveyance instrument providing evidence of the transferor’s title; and (2) a written agreement or affidavit from the transferor demonstrating that title will be transferred to the United States on behalf of the applicant to complete the acquisition in trust. A few commenters also noted that (a)(1) and (a)(2) appeared to impose redundant requirements. The final rule addresses this comment by deleting (a)(2), because the specified written evidence required by (a)(1) will necessarily also serve as evidence of how the applicant or current owner acquired title. B. Alternatives to a Title Insurance Policy A commenter requested clarification of paragraph (b)’s requirement for a ‘‘current title insurance commitment’’ to confirm that no title insurance policy needs to be purchased in the name of the U.S. in trust for the applicant. The commenter is correct that no title insurance policy needs to be purchased if the applicant provides a current title insurance commitment. Also, if the applicant or current owner already obtained a title insurance policy when they acquired the land, the applicant need not purchase a new title insurance policy if they provide the previously issued policy and an abstract of title dating from the time the land was acquired by the applicant or current owner to the present. No clarification to the rule was made in response to this comment because the rule already states the alternatives to purchasing a title insurance policy. Another commenter noted that, because the rule requires only the commitment to issue title insurance rather than an actual title insurance policy, that title companies may stop issuing commitments without a final title policy. For BIA’s purposes, the title commitment is sufficient evidence and, in recognition that there is an extra cost imposed for obtaining the actual title E:\FR\FM\16MYR1.SGM 16MYR1 Federal Register / Vol. 81, No. 94 / Monday, May 16, 2016 / Rules and Regulations insurance policy, the rule requires only the title commitment. Currently, title companies generally will issue a commitment without requiring the purchase of an actual policy; the possibility that title companies may require the purchase of an actual policy in the future does not provide a basis for BIA to require the policy. An insurance policy is not required if the applicant is proceeding with a title commitment, but applicants may choose to purchase a policy if they so desire; the rule does not prevent them from doing so. Lhorne on DSK30JT082PROD with RULES C. Previously Issued Title Insurance Policy A commenter requested clarification of the requirement for ‘‘the policy of title insurance issued at the time of the applicant’s or current owner’s acquisition of the land and an abstract of title dating from the time the land was acquired by the applicant or current owner.’’ This commenter stated that an existing title insurance policy may not have been issued at the time of the acquisition, and suggested revising the provision to simply state ‘‘the policy of title insurance issued to the applicant or current owner.’’ The final rule incorporates this suggestion and clarifies that the abstract must address the time period beginning when the insurance policy was issued to the applicant or current owner. One commenter asked whether BIA, and the Office of the Solicitor, will still require a current title commitment, even when the applicant provides the previously issued policy and abstract. Upon the effective date of the rule, the BIA and Office of the Solicitor will require only the title evidence listed in the rule. D. Abstract of Title A commenter requested clarification as to whether the requirement for an abstract of title is intended to address title going forward rather than backward, and if so, that it would not be a title abstract in the traditional sense because the abstract would reflect only the current owner. The final rule clarifies that the requirement is intended to address title going forward, by adding ‘‘to the present.’’ The commenter is correct that the abstract of title will be straightforward, and may only reflect the current owner, but the abstract will serve the purpose of confirming the current owner’s ownership and showing whether any liens, encumbrances, or infirmities have been placed on title prior to acceptance in trust, in lieu of requiring the applicant to purchase a new title commitment. E. Marketability and Exceptions to the Title Insurance Policy A commenter requested clarification on what ‘‘marketability’’ means. The commenter also asked how BIA will address reversionary clauses and defeasible title issues and their effect on marketability. The final rule makes no substantive change to the provision allowing BIA to require the elimination of any such liens, encumbrances, or infirmities if BIA determines they make title to the land unmarketable. Likewise, the final rule makes no substantive change to the meaning of ‘‘unmarketable.’’ A commenter suggested the rule explain that the deed will not be recorded until exceptions to the title insurance policy are satisfied. The final rule does not include this explanation because it is inaccurate. There is no requirement that all exceptions be eliminated. The Department reviews and makes a determination on each exception as to whether it must be eliminated, and does not require the elimination of exceptions that do not affect the title to the land. F. Standards To Be Used in Place of DOJ Standards A few commenters requested more specifics as to what title standards the Department will apply in lieu of the DOJ standards. For example, one commenter asked whether the Department will still require applicants to use the American Land Title Association (ALTA) U.S. policy form in those cases in which the applicant chooses to obtain title insurance. The BIA has updated the feeto-trust handbook to ensure it is consistent with this final rule. The revised version of the fee-to-trust handbook specifies that, if the applicant chooses to submit title insurance, it should use the most current version of the ALTA U.S. policy form. A commenter also asked how the Department will determine who is qualified to provide title evidence, in lieu of the DOJ standards. The revised fee-to-trust handbook specifies that the Department will look to the appropriate licensing authority for qualifications. A commenter also asked what type of deed will be required to convey title to the U.S. on behalf of the applicant. The Department will continue the approach it has taken in the past (requiring a warranty deed in nearly all instances), specified in the revised fee-to-trust handbook. A commenter asked whether the Department will look to State laws for guidance. The Department relies on national standards, as set out in the rule and revised fee-to-trust handbook, rather than State laws, with regard to the Department’s decision whether to approve title. G. Timing and Timelines One commenter requested stating that the applicant need not provide title evidence until after the Secretary makes the decision to take the land into trust. The final rule only addresses what title evidence is required, it is not intended to change the Department’s process or timing. One commenter suggested imposing timelines on the Department’s issuance of preliminary and final title opinions. The final rule does not incorporate this suggestion because there are too many variables to establish a definitive timeframe for preparation of these documents. H. Other Comments A few commenters suggested edits that were beyond the scope of the interim final rule. One Tribal commenter noted the difficulty in obtaining title insurance policies in California and suggested actions the Department could take to educate title insurance companies. Another commenter suggested adding a requirement to obtain State approval to transfer jurisdiction of land being taken into trust. These comments are outside the scope of this rulemaking. A commenter also stated that the revision is not appropriate for an interim final rule. The Department disagrees because the rule is a targeted, procedural improvement. IV. Changes From Interim Final Rule to Final Rule As described above, the final rule includes edits to the interim final rule for clarification. The edits are summarized in the table below: New rule (effective May 16, 2016) Former rule Interim final rule The Secretary will require title evidence meeting the DOJ standards. Requires the following in lieu of the DOJ standards:. VerDate Sep<11>2014 14:36 May 13, 2016 Jkt 238001 PO 00000 Frm 00019 Fmt 4700 Sfmt 4700 30175 Clarifies ‘‘written evidence’’ to be: E:\FR\FM\16MYR1.SGM 16MYR1 30176 Federal Register / Vol. 81, No. 94 / Monday, May 16, 2016 / Rules and Regulations Former rule New rule (effective May 16, 2016) Interim final rule (1) Written evidence of the applicant’s title or that title will be transferred to the United States on behalf of the applicant to complete the trust acquisition; and (2) written evidence of how the applicant or current owner acquired title; and (3) either: (i) A current title insurance commitment; or .... (ii) a previously issued title insurance policy and abstract dating from the time the land was acquired to the present. The Secretary will notify the applicant of any Adds that the Secretary may seek additional liens, encumbrances, or infirmities which may information from the applicant if needed to exist. address the issues. The Secretary may require elimination of liens, No procedural change ..................................... encumbrances, infirmities prior to taking final approval action on the acquisition. The Secretary shall require elimination prior to No procedural change ..................................... such approval if the liens, encumbrances, or infirmities make title to the land unmarketable. V. Applicability of New Rule As the preamble to the interim final rule stated, this rule will apply to all trust applications submitted after the effective date. This rule will also apply to trust applications that are pending and for which the Preliminary Title Opinion has not yet been prepared by the Office of the Solicitor as of the effective date. However, if applicants have already submitted evidence meeting the DOJ standards, they need not re-submit evidence pursuant to this rule. This rule will not apply to trust applications that are pending and for which the Preliminary Title Opinion has already been prepared by the Office of the Solicitor as of the effective date. BIA has updated its fee-to-trust handbook to incorporate changes required by the new rule. The handbook is available at: https://www.bia.gov/cs/ groups/xraca/documents/text/idc1024504.pdf. VI. Procedural Requirements Lhorne on DSK30JT082PROD with RULES A. Regulatory Planning and Review (E.O. 12866 and 13563) Executive Order 12866 provides that the Office of Information and Regulatory Affairs in the Office of Management and Budget will review all significant rules. The Office of Information and Regulatory Affairs has determined that this rule is not significant. VerDate Sep<11>2014 14:36 May 13, 2016 Jkt 238001 Executive Order 13563 reaffirms the principles of E.O. 12866 while calling for improvements in the Nation’s regulatory system to promote predictability, to reduce uncertainty, and to use the best, most innovative, and least burdensome tools for achieving regulatory ends. The executive order directs agencies to consider regulatory approaches that reduce burdens and maintain flexibility and freedom of choice for the public where these approaches are relevant, feasible, and consistent with regulatory objectives. E.O. 13563 emphasizes further that regulations must be based on the best available science and that the rulemaking process must allow for public participation and an open exchange of ideas. We have developed this rule in a manner consistent with these requirements. B. Regulatory Flexibility Act The Department of the Interior certifies that this document will not have a significant economic effect on a substantial number of small entities under the Regulatory Flexibility Act (5 U.S.C. 601 et seq.). It does not change current funding requirements or regulate small entities. C. Small Business Regulatory Enforcement Fairness Act This rule is not a major rule under 5 U.S.C. 804(2), the Small Business PO 00000 Frm 00020 Fmt 4700 Sfmt 4700 (1) Applicant’s deed; or (2) If the applicant does not yet have title, the transferor’s deed and a written statement from the transferee that it will transfer title to the United States on behalf of the applicant. Deletes the requirement for written evidence of how the applicant or current owner acquired title. Clarifies that the abstract must cover the time period beginning when the land was acquired by the applicant or current owner up to the present. Allows applicant to choose to provide evidence meeting the DOJ standards in lieu of the current title commitment or policy and abstract. No change from interim final rule. No change from interim final rule. No change from interim final rule. Regulatory Enforcement Fairness Act. It will not result in the expenditure by State, local, or Tribal governments, in the aggregate, or by the private sector of $100 million or more in any one year. The rule will not result in a major increase in costs or prices for consumers, individual industries, Federal, State, or local government agencies, or geographic regions. Nor will this rule have significant adverse effects on competition, employment, investment, productivity, innovation, or the ability of the U.S.-based enterprises to compete with foreign-based enterprises. This rule removes the requirement for title evidence to comply with DOJ standards and replaces this requirement with a more targeted requirement for title evidence; it will not result in additional expenditures by any entity. D. Unfunded Mandates Reform Act This rule does not impose an unfunded mandate on State, local, or tribal governments or the private sector of more than $100 million per year. The rule does not have a significant or unique effect on State, local, or tribal governments or the private sector. A statement containing the information required by the Unfunded Mandates Reform Act (2 U.S.C. 1531 et seq.) is not required. E:\FR\FM\16MYR1.SGM 16MYR1 Federal Register / Vol. 81, No. 94 / Monday, May 16, 2016 / Rules and Regulations E. Takings (E.O. 12630) Under the criteria in Executive Order 12630, this rule does not affect individual property rights protected by the Fifth Amendment nor does it involve a compensable ‘‘taking.’’ A takings implication assessment is not required. F. Federalism (E.O. 13132) Under the criteria in Executive Order 13132, this rule has no substantial direct effect on the States, on the relationship between the national government and the States, or on the distribution of power and responsibilities among the various levels of government. This rule removes the requirement for title evidence to comply with DOJ standards and replaces this requirement with a more targeted requirement for title evidence; it does not affect States or the relationship with States in any way. G. Civil Justice Reform (E.O. 12988) This rule complies with the requirements of Executive Order 12988. Specifically, this rule has been reviewed to eliminate errors and ambiguity and written to minimize litigation; and is written in clear language and contains clear legal standards. Lhorne on DSK30JT082PROD with RULES H. Consultation With Indian Tribes (E.O. 13175) In accordance with the President’s memorandum of April 29, 1994, ‘‘Government-to-Government Relations with Native American Tribal Governments,’’ Executive Order 13175 (59 FR 22951, November 6, 2000), and 512 DM 2, we have evaluated the potential effects on federally recognized Indian Tribes and Indian trust assets and have determined there is no ‘‘substantial direct effect’’ on Tribes, on the relationship between the Federal Government and Tribes, or on the distribution of power and responsibilities between the Federal Government and Indian tribes. The rule will affect Tribes who apply to take land into trust, in that the rule removes unnecessary submissions of documentation. However, the rule does not have a substantial direct effect on Tribes because Tribes can still submit evidence meeting the DOJ title standards should they so choose and allowing the option of submitting a past title insurance policy and an abstract of title is intended to be less burdensome than the existing rule. The Department is committed to meaningful consultation with Tribes on substantive matters that have a substantial direct effect on Tribes, in accordance with E.O. 13175 and the Department of the Interior VerDate Sep<11>2014 14:36 May 13, 2016 Jkt 238001 Policy on Consultation with Indian Tribes. I. Paperwork Reduction Act This information collection for trust land applications is authorized by OMB Control Number 1076–0100, with an expiration of 08/31/16. The elimination of the requirement to comply with DOJ standards is not expected to have a quantifiable effect on the hour burden estimate for the information collection, but BIA will review whether its current estimates are affected by this change at the next renewal. J. National Environmental Policy Act This rule does not constitute a major Federal action significantly affecting the quality of the human environment. A detailed statement under the National Environmental Policy Act of 1969 (NEPA) is not required because the rule is covered by a categorical exclusion. This rule is excluded from the requirement to prepare a detailed statement because it is a regulation of an administrative nature. (For further information, see 43 CFR 46.210(i).) We have also determined that the rule does not involve any of the extraordinary circumstances listed in 43 CFR 46.215 that would require further analysis under NEPA. K. Information Quality Act In developing this rule we did not conduct or use a study, experiment, or survey requiring peer review under the Information Quality Act (Pub. L. 106– 554). L. Effects on the Energy Supply (E.O. 13211) This rule is not a significant energy action under the definition in Executive Order 13211. A Statement of Energy Effects is not required. M. Administrative Procedure Act We published an interim final rule with a request for comment without prior notice and comment, as allowed under 5 U.S.C. 553(b)(B). Under section 553(b)(B), we find that prior notice and comment are unnecessary because this is a minor, technical action that eliminates an unnecessary requirement. This rule removes the unnecessary requirement that the title evidence the applicant submits must comply with DOJ standards for title evidence. Delay in publishing this rule would unnecessarily continue imposing the unnecessary requirement on applicants and would therefore be contrary to the public interest. We stated that we would review comments and initiate a proposed rulemaking, revise, or PO 00000 Frm 00021 Fmt 4700 Sfmt 4700 30177 withdraw the rule. Because the comments we received were primarily seeking clarifications, we have chosen to revise the rule with requested clarifications. List of Subjects in 25 CFR Part 151 Indians—lands, Reporting and recordkeeping requirements. For the reasons given in the preamble, the interim rule amending 25 CFR part 151 which was published at 81 FR 10477 on March 1, 2016, is adopted as a final rule with the following change: PART 151—LAND ACQUISITIONS 1. The authority citation for part 151 continues to read as follows: ■ Authority: R.S. 161: 5 U.S.C. 301. Interpret or apply 46 Stat. 1106, as amended; 46 Stat.1471, as amended; 48 Stat. 985, as amended; 49 Stat. 1967, as amended, 53 Stat. 1129; 63 Stat. 605; 69 Stat. 392, as amended; 70 Stat. 290, as amended; 70 Stat. 626; 75 Stat. 505; 77 Stat. 349; 78 Stat. 389; 78 Stat. 747; 82 Stat. 174, as amended, 82 Stat. 884; 84 Stat. 120; 84 Stat. 1874; 86 Stat. 216; 86 Stat. 530; 86 Stat. 744; 88 Stat. 78; 88 Stat. 81; 88 Stat. 1716; 88 Stat. 2203; 88 Stat. 2207; 25 U.S.C. 2, 9, 409a, 450h, 451, 464, 465, 487, 488, 489, 501, 502, 573, 574, 576, 608, 608a, 610, 610a, 622, 624, 640d–10, 1466, 1495, and other authorizing acts. ■ 2. Revise § 151.13 to read as follows: § 151.13 Title review. (a) If the Secretary determines that she will approve a request for the acquisition of land from unrestricted fee status to trust status, she shall require the applicant to furnish title evidence as follows: (1) The deed or other conveyance instrument providing evidence of the applicant’s title or, if the applicant does not yet have title, the deed providing evidence of the transferor’s title and a written agreement or affidavit from the transferor, that title will be transferred to the United States on behalf of the applicant to complete the acquisition in trust; and (2) Either: (i) A current title insurance commitment; or (ii) The policy of title insurance issued to the applicant or current owner and an abstract of title dating from the time the policy of title insurance was issued to the applicant or current owner to the present. (3) The applicant may choose to provide title evidence meeting the title standards issued by the U.S. Department of Justice, in lieu of the evidence required by paragraph (a)(2) of this section. (b) After reviewing submitted title evidence, the Secretary shall notify the E:\FR\FM\16MYR1.SGM 16MYR1 30178 Federal Register / Vol. 81, No. 94 / Monday, May 16, 2016 / Rules and Regulations applicant of any liens, encumbrances, or infirmities that the Secretary identified and may seek additional information from the applicant needed to address such issues. The Secretary may require the elimination of any such liens, encumbrances, or infirmities prior to taking final approval action on the acquisition, and she shall require elimination prior to such approval if she determines that the liens, encumbrances or infirmities make title to the land unmarketable. Dated: May 11, 2016. Lawrence S. Roberts, Acting Assistant Secretary—Indian Affairs. [FR Doc. 2016–11489 Filed 5–13–16; 8:45 am] BILLING CODE 4337–15–P DEPARTMENT OF HOMELAND SECURITY Coast Guard 33 CFR Part 117 [Docket No. USCG–2016–0392] Drawbridge Operation Regulation; Lake Washington Ship Canal, Seattle, WA Coast Guard, DHS. Notice of deviation from drawbridge regulation. AGENCY: ACTION: The Coast Guard has issued a temporary deviation from the operating schedule that governs the Montlake Bridge across the Lake Washington Ship Canal, mile 5.2, at Seattle, WA. The deviation is necessary to accommodate the University of Washington, and University of Washington Bothell commencement ceremony traffic. This deviation allows the bridge to remain in the closed-to-navigation position to accommodate the timely movement of vehicular traffic. DATES: This deviation is effective from 9:30 a.m. on June 11, 2016 to 6:15 p.m. on June 12, 2016. ADDRESSES: The docket for this deviation, [USCG–2016–0392] is available at https://www.regulations.gov. Type the docket number in the ‘‘SEARCH’’ box and click ‘‘SEARCH.’’ Click on Open Docket Folder on the line associated with this deviation. FOR FURTHER INFORMATION CONTACT: If you have questions on this temporary deviation, call or email Mr. Steven Fischer, Bridge Administrator, Thirteenth Coast Guard District; telephone 206–220–7282, email d13-pfd13bridges@uscg.mil. SUPPLEMENTARY INFORMATION: The University of Washington, through the Lhorne on DSK30JT082PROD with RULES SUMMARY: VerDate Sep<11>2014 14:36 May 13, 2016 Jkt 238001 Washington Department of Transportation, has requested that the Montlake Bridge bascule span remain in the closed-to-navigation position, and need not open to marine traffic to facilitate timely movement of commencement vehicular traffic. The Montlake Bridge across the Lake Washington Ship Canal, at mile 5.2, in the closed position provides 30 feet of vertical clearance throughout the navigation channel, and 46 feet of vertical clearance throughout the center 60-feet of the bridge; vertical clearance references to the Mean Water Level of Lake Washington. The normal operating schedule for Montlake Bridge operates in accordance with 33 CFR 117.1051(e). The deviation period is from 9:30 a.m. to 12:30 p.m. and from 4:30 p.m. to 6:30 p.m. on June 11, 2016; and from 11:45 a.m. to 1:45 p.m. and from 4:15 p.m. to 6:15 p.m. on June 12, 2016. The deviation allows the bascule span of the Montlake Bridge to remain in the closed-to-navigation position for the times and dates herein. Waterway usage on the Lake Washington Ship Canal ranges from commercial tug and barge to small pleasure craft. Vessels able to pass through the bridge in the closed-to-navigation position may do so at anytime. The bridge will be able to open for emergencies and there is no immediate alternate route for marine vessels to pass. The Coast Guard will also inform the users of the waterways through our Local and Broadcast Notices to Mariners of the change in operating schedule for the bridge so that vessels can arrange their transits to minimize any impact caused by the temporary deviation. In accordance with 33 CFR 117.35(e), the drawbridge must return to its regular operating schedule immediately at the end of the designated time period. This deviation from the operating regulations is authorized under 33 CFR 117.35. Dated: May 10, 2016. Steven M. Fischer, Bridge Administrator, Thirteenth Coast Guard District. [FR Doc. 2016–11495 Filed 5–13–16; 8:45 am] BILLING CODE 9110–04–P DEPARTMENT OF HOMELAND SECURITY Coast Guard 33 CFR Part 117 [Docket No. USCG–2016–0380] Drawbridge Operation Regulation; Willamette River, Portland, OR AGENCY: PO 00000 Coast Guard, DHS. Frm 00022 Fmt 4700 Sfmt 4700 Notice of deviation from drawbridge regulation. ACTION: The Coast Guard has issued a temporary deviation from the operating schedule that governs the upper deck of the Steel Bridge, mile 12.1, and the Burnside Bridge, mile 12.4, both crossing the Willamette River, at Portland, OR. The deviation is necessary to accommodate the annual Rose Festival Parade event, which crosses the Steel Bridge and Burnside Bridge. This deviation allows the upper deck of the Steel Bridge and Burnside Bridge to remain in the closed-to-navigation position and need not open for marine traffic to allow for the safe movement of event participants. DATES: This deviation is effective from 7 a.m. to 2 p.m. on June 11, 2016. ADDRESSES: The docket for this deviation, [USCG–2016–0380] is available at https://www.regulations.gov. Type the docket number in the ‘‘SEARCH’’ box and click ‘‘SEARCH.’’ Click on Open Docket Folder on the line associated with this deviation. FOR FURTHER INFORMATION CONTACT: If you have questions on this temporary deviation, call or email Mr. Steven Fischer, Bridge Administrator, Thirteenth Coast Guard District; telephone 206–220–7282, email d13-pfd13bridges@uscg.mil. SUPPLEMENTARY INFORMATION: TriMet Public Transit and Multnomah County have requested that the upper deck of the Steel Bridge and the Burnside Bridge remain in the closed-tonavigation position to accommodate the annual Rose Festival Parade event. The Steel Bridge, mile 12.1, and the Burnside Bridge, mile 12.4, both cross the Willamette River. The Steel Bridge is a double-deck lift bridge with a lower lift deck and an upper lift deck which operate independent of each other. When both decks are in the down position the bridge provides 26 feet of vertical clearance. When the lower deck is in the up position, the bridge provides 71 feet of vertical clearance. This deviation does not affect the operating schedule of the lower deck which opens on signal. The normal operating schedule for the upper deck of the Steel Bridge operates in accordance with 33 CFR 117.897(c)(3)(ii). The Burnside Bridge provides a vertical clearance of 64 feet in the closed-to-navigation position. The normal operating schedule for the Burnside Bridge operates in accordance with 33 CFR 117.897(c)(3)(iii). The Steel Bridge and Burnside Bridge clearances are above Columbia River Datum 0.0. SUMMARY: E:\FR\FM\16MYR1.SGM 16MYR1

Agencies

[Federal Register Volume 81, Number 94 (Monday, May 16, 2016)]
[Rules and Regulations]
[Pages 30173-30178]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2016-11489]


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DEPARTMENT OF THE INTERIOR

Bureau of Indian Affairs

25 CFR Part 151

[167A2100DD/AAKC001030/A0A501010.999900 253G]
RIN 1076-AF28


Title Evidence for Trust Land Acquisitions

AGENCY: Bureau of Indian Affairs, Interior.

ACTION: Final rule.

-----------------------------------------------------------------------

SUMMARY: This rule deletes the requirement for fee-to-trust applicants 
to furnish title evidence that meets the ``Standards for the 
Preparation of Title Evidence in Land Acquisitions by the United 
States'' issued by the U.S. Department of Justice (DOJ), and replaces 
the requirement with a more targeted requirement for title evidence, 
because adherence to the DOJ standards is not required for acquisitions 
of land in trust for individual Indians or Indian tribes.

DATES: This rule becomes effective on May 16, 2016.

FOR FURTHER INFORMATION CONTACT: Elizabeth Appel, Director, Office of 
Regulatory Affairs and Collaborative Action, Office of the Assistant 
Secretary--Indian Affairs; telephone (202) 273-4680, 
elizabeth.appel@bia.gov.

SUPPLEMENTARY INFORMATION: 

I. Overview of Rule
II. Background
III. Comments on the Interim Final Rule
    A. ``Written Evidence''
    B. Alternatives to a Title Insurance Policy
    C. Previously Issued Title Insurance Policy
    D. Abstract of Title
    E. Marketability and Exceptions to the Title Insurance Policy
    F. Standards to be Used in Place of DOJ Standards
    G. Timing and Timelines
    H. Other Comments
IV. Changes from Interim Final Rule to Final Rule

[[Page 30174]]

V. Applicability of New Rule
VI. Procedural Requirements
    A. Regulatory Planning and Review (E.O. 12866 and 13563)
    B. Regulatory Flexibility Act
    C. Small Business Regulatory Enforcement Fairness Act
    D. Unfunded Mandates Reform Act
    E. Takings (E.O. 12630)
    F. Federalism (E.O. 13132)
    G. Civil Justice Reform (E.O. 12988)
    H. Consultation with Indian Tribes (E.O. 13175)
    I. Paperwork Reduction Act
    J. National Environmental Policy Act
    K. Information Quality Act
    L. Effects on the Energy Supply (E.O. 13211)
    M. Administrative Procedure Act

I. Overview of Rule

    This rule replaces the ``Standards for the Preparation of Title 
Evidence in Land Acquisitions by the United States'' issued by DOJ (DOJ 
standards) with a more targeted title evidence standard. Under the new 
standard, applicants must furnish a deed evidencing that the applicant 
has ownership, or a written sales contract or written statement from 
the transferor that the applicant will have ownership. Applicants must 
also submit either (1) a current title insurance commitment; or (2) the 
policy of title insurance issued at the time of the applicant's or 
current owner's acquisition of the interest and an abstract dating from 
the time the interest was acquired. This rule does not preclude 
applicants from having title confirmed pursuant to all requirements of 
DOJ standards (as those standards apply in the land-into-trust context) 
if the applicant so chooses.
    The rule continues the current requirement that title evidence must 
be submitted and reviewed by the Department of the Interior 
(Department) before title is transferred. The rule continues to provide 
that the Secretary has discretion to require the elimination of any 
liens, encumbrances, or infirmities prior to acceptance in trust. The 
rule also continues the practice of requiring the elimination of any 
legal claims, including but not limited to liens, mortgages, and taxes, 
determined by the Secretary to make title unmarketable, prior to 
acceptance in trust.

II. Background

    Section 5 of the Indian Reorganization Act (IRA) is the primary 
authority providing the Secretary of the Interior (Secretary) with 
discretion to acquire land in trust for individual Indians or Indian 
tribes. See 25 U.S.C. 465. Congress has also enacted other statutes 
that authorize the discretionary acquisition of lands for specific 
tribes. The Department's regulations at 25 CFR part 151 establish the 
process for discretionary trust acquisitions pursuant to section 465 
and other statutory authority. Section 151.13 of the regulations 
published in 1980 required the applicant to furnish title evidence 
meeting the DOJ standards if the Secretary determines to approve a fee-
to-trust application.
    On March 1, 2016, BIA published an interim final rule deleting the 
requirement for the applicant to furnish title evidence meeting DOJ 
standards because those standards are not required for acquisitions of 
land in trust for individual Indians or Indian tribes. See 81 FR 10477. 
On April 15, 2016, BIA delayed the effective date of the rule to May 
16, 2016 to allow BIA time to publish technical revisions. See 81 FR 
22183. This rule provides those technical revisions.

III. Comments on the Interim Final Rule

    The BIA received 13 comments in response to the interim final rule, 
most asking questions seeking clarification of the regulatory text. 
Several commenters supported the rule, but requested clarification. 
Commenters who opposed the rule stated that the current DOJ standards 
are necessary to protect the public, including adjoining landowners and 
other third parties, and protect against conflicts of interest, and 
that DOJ standards are more reliable and less costly.
    After careful consideration of the comments and applying its own 
experience in reviewing fee-to-trust applications and title evidence, 
BIA has determined that the final rule provides sufficient standards to 
protect the United States. The purpose of title evidence requirements 
is to ensure that the Tribe has marketable title to convey to the 
United States, thereby protecting the United States. See Crest-Dehesa-
Granite Hills-Harbison Canyon Subregional Planning Group v. Acting 
Pacific Regional Director, 61 IBIA 208, 216 (2015). The rule revisions 
allow for a less costly alternative to providing a title insurance 
policy under DOJ standards, while still ensuring sufficient evidence of 
good title. The following are summaries of the substantive points made 
in these comments, and the Department's responses.

A. ``Written Evidence''

    Several commenters requested clarification of what ``written 
evidence'' is required by paragraphs (a)(1) and (a)(2) of the interim 
final rule. In paragraph (a)(1), the interim final rule required 
``written evidence of the applicant's title or that title will be 
transferred to the United States on behalf of the applicant to complete 
the acquisition in trust.'' In paragraph (a)(2), the interim final rule 
required ``written evidence of how title was acquired by the applicant 
or current owner.'' Commenters stated that it appeared the same 
evidence may satisfy both (a)(1) and (a)(2), in the form of the 
applicant's deed. To clarify, the final rule specifies that the written 
evidence must be a deed or other conveyance instrument providing 
evidence of the applicant's title. The final rule also specifies that 
if the applicant does not yet have title, the written evidence must be: 
(1) A deed or other conveyance instrument providing evidence of the 
transferor's title; and (2) a written agreement or affidavit from the 
transferor demonstrating that title will be transferred to the United 
States on behalf of the applicant to complete the acquisition in trust.
    A few commenters also noted that (a)(1) and (a)(2) appeared to 
impose redundant requirements. The final rule addresses this comment by 
deleting (a)(2), because the specified written evidence required by 
(a)(1) will necessarily also serve as evidence of how the applicant or 
current owner acquired title.

B. Alternatives to a Title Insurance Policy

    A commenter requested clarification of paragraph (b)'s requirement 
for a ``current title insurance commitment'' to confirm that no title 
insurance policy needs to be purchased in the name of the U.S. in trust 
for the applicant. The commenter is correct that no title insurance 
policy needs to be purchased if the applicant provides a current title 
insurance commitment. Also, if the applicant or current owner already 
obtained a title insurance policy when they acquired the land, the 
applicant need not purchase a new title insurance policy if they 
provide the previously issued policy and an abstract of title dating 
from the time the land was acquired by the applicant or current owner 
to the present. No clarification to the rule was made in response to 
this comment because the rule already states the alternatives to 
purchasing a title insurance policy.
    Another commenter noted that, because the rule requires only the 
commitment to issue title insurance rather than an actual title 
insurance policy, that title companies may stop issuing commitments 
without a final title policy. For BIA's purposes, the title commitment 
is sufficient evidence and, in recognition that there is an extra cost 
imposed for obtaining the actual title

[[Page 30175]]

insurance policy, the rule requires only the title commitment. 
Currently, title companies generally will issue a commitment without 
requiring the purchase of an actual policy; the possibility that title 
companies may require the purchase of an actual policy in the future 
does not provide a basis for BIA to require the policy. An insurance 
policy is not required if the applicant is proceeding with a title 
commitment, but applicants may choose to purchase a policy if they so 
desire; the rule does not prevent them from doing so.

C. Previously Issued Title Insurance Policy

    A commenter requested clarification of the requirement for ``the 
policy of title insurance issued at the time of the applicant's or 
current owner's acquisition of the land and an abstract of title dating 
from the time the land was acquired by the applicant or current 
owner.'' This commenter stated that an existing title insurance policy 
may not have been issued at the time of the acquisition, and suggested 
revising the provision to simply state ``the policy of title insurance 
issued to the applicant or current owner.'' The final rule incorporates 
this suggestion and clarifies that the abstract must address the time 
period beginning when the insurance policy was issued to the applicant 
or current owner.
    One commenter asked whether BIA, and the Office of the Solicitor, 
will still require a current title commitment, even when the applicant 
provides the previously issued policy and abstract. Upon the effective 
date of the rule, the BIA and Office of the Solicitor will require only 
the title evidence listed in the rule.

D. Abstract of Title

    A commenter requested clarification as to whether the requirement 
for an abstract of title is intended to address title going forward 
rather than backward, and if so, that it would not be a title abstract 
in the traditional sense because the abstract would reflect only the 
current owner. The final rule clarifies that the requirement is 
intended to address title going forward, by adding ``to the present.'' 
The commenter is correct that the abstract of title will be 
straightforward, and may only reflect the current owner, but the 
abstract will serve the purpose of confirming the current owner's 
ownership and showing whether any liens, encumbrances, or infirmities 
have been placed on title prior to acceptance in trust, in lieu of 
requiring the applicant to purchase a new title commitment.

E. Marketability and Exceptions to the Title Insurance Policy

    A commenter requested clarification on what ``marketability'' 
means. The commenter also asked how BIA will address reversionary 
clauses and defeasible title issues and their effect on marketability. 
The final rule makes no substantive change to the provision allowing 
BIA to require the elimination of any such liens, encumbrances, or 
infirmities if BIA determines they make title to the land unmarketable. 
Likewise, the final rule makes no substantive change to the meaning of 
``unmarketable.''
    A commenter suggested the rule explain that the deed will not be 
recorded until exceptions to the title insurance policy are satisfied. 
The final rule does not include this explanation because it is 
inaccurate. There is no requirement that all exceptions be eliminated. 
The Department reviews and makes a determination on each exception as 
to whether it must be eliminated, and does not require the elimination 
of exceptions that do not affect the title to the land.

F. Standards To Be Used in Place of DOJ Standards

    A few commenters requested more specifics as to what title 
standards the Department will apply in lieu of the DOJ standards. For 
example, one commenter asked whether the Department will still require 
applicants to use the American Land Title Association (ALTA) U.S. 
policy form in those cases in which the applicant chooses to obtain 
title insurance. The BIA has updated the fee-to-trust handbook to 
ensure it is consistent with this final rule. The revised version of 
the fee-to-trust handbook specifies that, if the applicant chooses to 
submit title insurance, it should use the most current version of the 
ALTA U.S. policy form. A commenter also asked how the Department will 
determine who is qualified to provide title evidence, in lieu of the 
DOJ standards. The revised fee-to-trust handbook specifies that the 
Department will look to the appropriate licensing authority for 
qualifications. A commenter also asked what type of deed will be 
required to convey title to the U.S. on behalf of the applicant. The 
Department will continue the approach it has taken in the past 
(requiring a warranty deed in nearly all instances), specified in the 
revised fee-to-trust handbook.
    A commenter asked whether the Department will look to State laws 
for guidance. The Department relies on national standards, as set out 
in the rule and revised fee-to-trust handbook, rather than State laws, 
with regard to the Department's decision whether to approve title.

G. Timing and Timelines

    One commenter requested stating that the applicant need not provide 
title evidence until after the Secretary makes the decision to take the 
land into trust. The final rule only addresses what title evidence is 
required, it is not intended to change the Department's process or 
timing.
    One commenter suggested imposing timelines on the Department's 
issuance of preliminary and final title opinions. The final rule does 
not incorporate this suggestion because there are too many variables to 
establish a definitive timeframe for preparation of these documents.

H. Other Comments

    A few commenters suggested edits that were beyond the scope of the 
interim final rule. One Tribal commenter noted the difficulty in 
obtaining title insurance policies in California and suggested actions 
the Department could take to educate title insurance companies. Another 
commenter suggested adding a requirement to obtain State approval to 
transfer jurisdiction of land being taken into trust. These comments 
are outside the scope of this rulemaking.
    A commenter also stated that the revision is not appropriate for an 
interim final rule. The Department disagrees because the rule is a 
targeted, procedural improvement.

IV. Changes From Interim Final Rule to Final Rule

    As described above, the final rule includes edits to the interim 
final rule for clarification. The edits are summarized in the table 
below:

------------------------------------------------------------------------
                                                     New rule (effective
         Former rule           Interim final rule       May 16, 2016)
------------------------------------------------------------------------
The Secretary will require    Requires the          Clarifies ``written
 title evidence meeting the    following in lieu     evidence'' to be:
 DOJ standards.                of the DOJ
                               standards:.

[[Page 30176]]

 
                              (1) Written evidence  (1) Applicant's
                               of the applicant's    deed; or
                               title or that title
                               will be transferred
                               to the United
                               States on behalf of
                               the applicant to
                               complete the trust
                               acquisition; and
                              (2) written evidence  (2) If the applicant
                               of how the            does not yet have
                               applicant or          title, the
                               current owner         transferor's deed
                               acquired title; and   and a written
                                                     statement from the
                                                     transferee that it
                                                     will transfer title
                                                     to the United
                                                     States on behalf of
                                                     the applicant.
                              (3) either:           Deletes the
                                                     requirement for
                                                     written evidence of
                                                     how the applicant
                                                     or current owner
                                                     acquired title.
                              (i) A current title   Clarifies that the
                               insurance             abstract must cover
                               commitment; or.       the time period
                                                     beginning when the
                                                     land was acquired
                                                     by the applicant or
                                                     current owner up to
                                                     the present.
                              (ii) a previously     Allows applicant to
                               issued title          choose to provide
                               insurance policy      evidence meeting
                               and abstract dating   the DOJ standards
                               from the time the     in lieu of the
                               land was acquired     current title
                               to the present.       commitment or
                                                     policy and
                                                     abstract.
The Secretary will notify     Adds that the         No change from
 the applicant of any liens,   Secretary may seek    interim final rule.
 encumbrances, or              additional
 infirmities which may exist.  information from
                               the applicant if
                               needed to address
                               the issues.
The Secretary may require     No procedural change  No change from
 elimination of liens,                               interim final rule.
 encumbrances, infirmities
 prior to taking final
 approval action on the
 acquisition.
The Secretary shall require   No procedural change  No change from
 elimination prior to such                           interim final rule.
 approval if the liens,
 encumbrances, or
 infirmities make title to
 the land unmarketable.
------------------------------------------------------------------------

V. Applicability of New Rule

    As the preamble to the interim final rule stated, this rule will 
apply to all trust applications submitted after the effective date. 
This rule will also apply to trust applications that are pending and 
for which the Preliminary Title Opinion has not yet been prepared by 
the Office of the Solicitor as of the effective date. However, if 
applicants have already submitted evidence meeting the DOJ standards, 
they need not re-submit evidence pursuant to this rule. This rule will 
not apply to trust applications that are pending and for which the 
Preliminary Title Opinion has already been prepared by the Office of 
the Solicitor as of the effective date.
    BIA has updated its fee-to-trust handbook to incorporate changes 
required by the new rule. The handbook is available at: https://www.bia.gov/cs/groups/xraca/documents/text/idc1-024504.pdf.

VI. Procedural Requirements

A. Regulatory Planning and Review (E.O. 12866 and 13563)

    Executive Order 12866 provides that the Office of Information and 
Regulatory Affairs in the Office of Management and Budget will review 
all significant rules. The Office of Information and Regulatory Affairs 
has determined that this rule is not significant.
    Executive Order 13563 reaffirms the principles of E.O. 12866 while 
calling for improvements in the Nation's regulatory system to promote 
predictability, to reduce uncertainty, and to use the best, most 
innovative, and least burdensome tools for achieving regulatory ends. 
The executive order directs agencies to consider regulatory approaches 
that reduce burdens and maintain flexibility and freedom of choice for 
the public where these approaches are relevant, feasible, and 
consistent with regulatory objectives. E.O. 13563 emphasizes further 
that regulations must be based on the best available science and that 
the rulemaking process must allow for public participation and an open 
exchange of ideas. We have developed this rule in a manner consistent 
with these requirements.

B. Regulatory Flexibility Act

    The Department of the Interior certifies that this document will 
not have a significant economic effect on a substantial number of small 
entities under the Regulatory Flexibility Act (5 U.S.C. 601 et seq.). 
It does not change current funding requirements or regulate small 
entities.

C. Small Business Regulatory Enforcement Fairness Act

    This rule is not a major rule under 5 U.S.C. 804(2), the Small 
Business Regulatory Enforcement Fairness Act. It will not result in the 
expenditure by State, local, or Tribal governments, in the aggregate, 
or by the private sector of $100 million or more in any one year. The 
rule will not result in a major increase in costs or prices for 
consumers, individual industries, Federal, State, or local government 
agencies, or geographic regions. Nor will this rule have significant 
adverse effects on competition, employment, investment, productivity, 
innovation, or the ability of the U.S.-based enterprises to compete 
with foreign-based enterprises. This rule removes the requirement for 
title evidence to comply with DOJ standards and replaces this 
requirement with a more targeted requirement for title evidence; it 
will not result in additional expenditures by any entity.

D. Unfunded Mandates Reform Act

    This rule does not impose an unfunded mandate on State, local, or 
tribal governments or the private sector of more than $100 million per 
year. The rule does not have a significant or unique effect on State, 
local, or tribal governments or the private sector. A statement 
containing the information required by the Unfunded Mandates Reform Act 
(2 U.S.C. 1531 et seq.) is not required.

[[Page 30177]]

E. Takings (E.O. 12630)

    Under the criteria in Executive Order 12630, this rule does not 
affect individual property rights protected by the Fifth Amendment nor 
does it involve a compensable ``taking.'' A takings implication 
assessment is not required.

F. Federalism (E.O. 13132)

    Under the criteria in Executive Order 13132, this rule has no 
substantial direct effect on the States, on the relationship between 
the national government and the States, or on the distribution of power 
and responsibilities among the various levels of government. This rule 
removes the requirement for title evidence to comply with DOJ standards 
and replaces this requirement with a more targeted requirement for 
title evidence; it does not affect States or the relationship with 
States in any way.

G. Civil Justice Reform (E.O. 12988)

    This rule complies with the requirements of Executive Order 12988. 
Specifically, this rule has been reviewed to eliminate errors and 
ambiguity and written to minimize litigation; and is written in clear 
language and contains clear legal standards.

H. Consultation With Indian Tribes (E.O. 13175)

    In accordance with the President's memorandum of April 29, 1994, 
``Government-to-Government Relations with Native American Tribal 
Governments,'' Executive Order 13175 (59 FR 22951, November 6, 2000), 
and 512 DM 2, we have evaluated the potential effects on federally 
recognized Indian Tribes and Indian trust assets and have determined 
there is no ``substantial direct effect'' on Tribes, on the 
relationship between the Federal Government and Tribes, or on the 
distribution of power and responsibilities between the Federal 
Government and Indian tribes. The rule will affect Tribes who apply to 
take land into trust, in that the rule removes unnecessary submissions 
of documentation. However, the rule does not have a substantial direct 
effect on Tribes because Tribes can still submit evidence meeting the 
DOJ title standards should they so choose and allowing the option of 
submitting a past title insurance policy and an abstract of title is 
intended to be less burdensome than the existing rule. The Department 
is committed to meaningful consultation with Tribes on substantive 
matters that have a substantial direct effect on Tribes, in accordance 
with E.O. 13175 and the Department of the Interior Policy on 
Consultation with Indian Tribes.

I. Paperwork Reduction Act

    This information collection for trust land applications is 
authorized by OMB Control Number 1076-0100, with an expiration of 08/
31/16. The elimination of the requirement to comply with DOJ standards 
is not expected to have a quantifiable effect on the hour burden 
estimate for the information collection, but BIA will review whether 
its current estimates are affected by this change at the next renewal.

J. National Environmental Policy Act

    This rule does not constitute a major Federal action significantly 
affecting the quality of the human environment. A detailed statement 
under the National Environmental Policy Act of 1969 (NEPA) is not 
required because the rule is covered by a categorical exclusion. This 
rule is excluded from the requirement to prepare a detailed statement 
because it is a regulation of an administrative nature. (For further 
information, see 43 CFR 46.210(i).) We have also determined that the 
rule does not involve any of the extraordinary circumstances listed in 
43 CFR 46.215 that would require further analysis under NEPA.

K. Information Quality Act

    In developing this rule we did not conduct or use a study, 
experiment, or survey requiring peer review under the Information 
Quality Act (Pub. L. 106-554).

L. Effects on the Energy Supply (E.O. 13211)

    This rule is not a significant energy action under the definition 
in Executive Order 13211. A Statement of Energy Effects is not 
required.

M. Administrative Procedure Act

    We published an interim final rule with a request for comment 
without prior notice and comment, as allowed under 5 U.S.C. 553(b)(B). 
Under section 553(b)(B), we find that prior notice and comment are 
unnecessary because this is a minor, technical action that eliminates 
an unnecessary requirement. This rule removes the unnecessary 
requirement that the title evidence the applicant submits must comply 
with DOJ standards for title evidence. Delay in publishing this rule 
would unnecessarily continue imposing the unnecessary requirement on 
applicants and would therefore be contrary to the public interest. We 
stated that we would review comments and initiate a proposed 
rulemaking, revise, or withdraw the rule. Because the comments we 
received were primarily seeking clarifications, we have chosen to 
revise the rule with requested clarifications.

List of Subjects in 25 CFR Part 151

    Indians--lands, Reporting and recordkeeping requirements.

    For the reasons given in the preamble, the interim rule amending 25 
CFR part 151 which was published at 81 FR 10477 on March 1, 2016, is 
adopted as a final rule with the following change:

PART 151--LAND ACQUISITIONS

0
1. The authority citation for part 151 continues to read as follows:

    Authority: R.S. 161: 5 U.S.C. 301. Interpret or apply 46 Stat. 
1106, as amended; 46 Stat.1471, as amended; 48 Stat. 985, as 
amended; 49 Stat. 1967, as amended, 53 Stat. 1129; 63 Stat. 605; 69 
Stat. 392, as amended; 70 Stat. 290, as amended; 70 Stat. 626; 75 
Stat. 505; 77 Stat. 349; 78 Stat. 389; 78 Stat. 747; 82 Stat. 174, 
as amended, 82 Stat. 884; 84 Stat. 120; 84 Stat. 1874; 86 Stat. 216; 
86 Stat. 530; 86 Stat. 744; 88 Stat. 78; 88 Stat. 81; 88 Stat. 1716; 
88 Stat. 2203; 88 Stat. 2207; 25 U.S.C. 2, 9, 409a, 450h, 451, 464, 
465, 487, 488, 489, 501, 502, 573, 574, 576, 608, 608a, 610, 610a, 
622, 624, 640d-10, 1466, 1495, and other authorizing acts.

0
2. Revise Sec.  151.13 to read as follows:


Sec.  151.13  Title review.

    (a) If the Secretary determines that she will approve a request for 
the acquisition of land from unrestricted fee status to trust status, 
she shall require the applicant to furnish title evidence as follows:
    (1) The deed or other conveyance instrument providing evidence of 
the applicant's title or, if the applicant does not yet have title, the 
deed providing evidence of the transferor's title and a written 
agreement or affidavit from the transferor, that title will be 
transferred to the United States on behalf of the applicant to complete 
the acquisition in trust; and
    (2) Either:
    (i) A current title insurance commitment; or
    (ii) The policy of title insurance issued to the applicant or 
current owner and an abstract of title dating from the time the policy 
of title insurance was issued to the applicant or current owner to the 
present.
    (3) The applicant may choose to provide title evidence meeting the 
title standards issued by the U.S. Department of Justice, in lieu of 
the evidence required by paragraph (a)(2) of this section.
    (b) After reviewing submitted title evidence, the Secretary shall 
notify the

[[Page 30178]]

applicant of any liens, encumbrances, or infirmities that the Secretary 
identified and may seek additional information from the applicant 
needed to address such issues. The Secretary may require the 
elimination of any such liens, encumbrances, or infirmities prior to 
taking final approval action on the acquisition, and she shall require 
elimination prior to such approval if she determines that the liens, 
encumbrances or infirmities make title to the land unmarketable.

    Dated: May 11, 2016.
Lawrence S. Roberts,
Acting Assistant Secretary--Indian Affairs.
[FR Doc. 2016-11489 Filed 5-13-16; 8:45 am]
 BILLING CODE 4337-15-P
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