SELF-DETERMINATION CONTRACTS.

SEC 201. SELF-DETERMINATION CONTRACTS. (a) Section 102 of the Indian Self-Determination Act is amended to read as follows: “Sec. 102. (a) (1) The Secretary is directed, upon the request of any Indian tribe by tribal resolution, to enter into a Self-Determination contract or contracts with a tribal organization to plan, conduct, and administer programs or portions thereof, including construction programs— “(A) provided for in the Act of April 16, 1934 (48 Stat. 596), as amended; “(B) which the Secretary is authorized to administer for the benefit of Indians under the Act of November 2, 1921 (42 Stat. 208), and any Act subsequent thereto; “(C) provided by the Secretary of Health and Human Services under the Act of August 5, 1954 (68 Stat. 674), as amended; “(D) administered by the Secretary for the benefit of Indians for which appropriations are made to agencies other than the Department of Health and Human Services or the Department of the Interior; and “(E) for the benefit of Indians because of their status as Indians without regard to the agency or office of the Department of Health and Human Services or the Department of the Interior within which it is performed. “(2) If so authorized by an Indian tribe under paragraph (1) of this subsection, a tribal organization may submit a proposal for a Self-Determination contract to the Secretary for review. The Secretary shall, within ninety days after receipt of the proposal, approve the proposal unless, within sixty days of receipt of the proposal, a specific finding is made that— “(A) the service to be rendered to the Indian beneficiaries of the particular program or function to be contracted will not be satisfactory; “(B) adequate protection of trust resources is not assured; or “(C) the proposed project or function to be contracted for cannot be properly completed or maintained by the proposed contract. “(3) Upon the request of a tribal organization that operates two or more mature Self-Determination contracts, those contracts may be consolidated into one single contract. “(b) Whenever the Secretary declines to enter into a self-determination contract or contracts pursuant to subsection (a) of this section, the Secretary shall— “(1) state any objections in writing to the tribal organization. 102 STAT. 2289 “(2) provide assistance to the tribal organization to overcome the stated objections, and “(3) provide the tribal organization with a hearing on the record and the opportunity for appeal on the objections raised, under such rules and regulations as the Secretary may promulgate. “(c) (1) Beginning in 1990, the Secretary shall be responsible for obtaining or providing liability insurance or equivalent coverage, on the most cost-effective basis, for Indian tribes, tribal organizations, and tribal contractors carrying out contracts, grant agreements and cooperative agreements pursuant to this Act. In obtaining or providing such coverage, the Secretary shall take into consideration the extent to which liability under such contracts or agreements are covered by the Federal Tort Claims Act. “(2) In obtaining or providing such coverage, the Secretary shall, to the greatest extent practicable, give a preference to coverage underwritten by Indian-owned economic enterprises as defined in section 1425, title 25, United States Code, except that, for the purposes of this subsection, such enterprises may include non-profit corporations. “(3) (A) Any policy of insurance obtained or provided by the Secretary pursuant to this subsection shall contain a provision that the insurance carrier shall waive any right it may have to raise as a defense the sovereign immunity of an Indian tribe from suit, but that such waiver shall extend only to claims the amount and nature of which are within the coverage and limits of the policy and shall not authorize or empower such insurance carrier to waive or other-wise limit the tribe’s sovereign immunity outside or beyond the coverage or limits of the policy of insurance. “(B) No waiver of the sovereign immunity of an Indian tribe pursuant to this paragraph shall include a waiver to the extent of any potential liability for interest prior to judgment or for punitive damages or for any other limitation on liability imposed by the law of the State in which the alleged injury occurs.”. (b) (1) Subsections (a) and (b) and the first sentence of subsection (c) of section 103 of the Indian Self-Determination Act are hereby repealed. Subsection (c) of section 103 of the Indian Self-Determina-tion Act is redesignated as subsection (d) of section 102 of that Act and is amended by striking out “103 and 104(b)” and inserting, in lieu thereof, “102 or 103”. (2) Any reference to section 103(c) contained in an Act making appropriations for the Department of the Interior and Related Agencies for fiscal year 1989 shall be deemed to apply to section 102(d) of such Act as amended by this Act.