
From the U.S. Code Online via GPO Access
[wais.access.gpo.gov]
[Laws in effect as of January 2, 2001]
[Document not affected by Public Laws enacted between
  January 2, 2001 and January 28, 2002]
[CITE: 25USC450m]

 
                            TITLE 25--INDIANS
 
                        CHAPTER 14--MISCELLANEOUS
 
    SUBCHAPTER II--INDIAN SELF-DETERMINATION AND EDUCATION ASSISTANCE
 
                    Part A--Indian Self-Determination
 
Sec. 450m. Rescission of contract or grant and assumption of 
        control of program, etc.; authority; grounds; procedure; 
        correction of violation as prerequisite to new contract or grant 
        agreement; construction with occupational safety and health 
        requirements
        
    Each contract or grant agreement entered into pursuant to sections 
450f, 450g, and 450h \1\ of this title shall provide that in any case 
where the appropriate Secretary determines that the tribal 
organization's performance under such contract or grant agreement 
involves (1) the violation of the rights or endangerment of the health, 
safety, or welfare of any persons; or (2) gross negligence or 
mismanagement in the handling or use of funds provided to the tribal 
organization pursuant to such contract or grant agreement, or in the 
management of trust fund, trust lands or interests in such lands 
pursuant to such contract or grant agreement, such Secretary may, under 
regulations prescribed by him and after providing notice and a hearing 
on the record to such tribal organization, rescind such contract or 
grant agreement, in whole or in part, and assume or resume control or 
operation of the program, activity, or service involved if he determines 
that the tribal organization has not taken corrective action as 
prescribed by the Secretary to remedy the contract deficiency, except 
that the appropriate Secretary may, upon written notice to a tribal 
organization, and the tribe served by the tribal organization, 
immediately rescind a contract or grant, in whole or in part, and resume 
control or operation of a program, activity, function, or service, if 
the Secretary finds that (i) there is an immediate threat of imminent 
harm to the safety of any person, or imminent substantial and 
irreparable harm to trust funds, trust lands, or interests in such 
lands, and (ii) such threat arises from the failure of the contractor to 
fulfill the requirements of the contract. In such cases, the Secretary 
shall provide the tribal organization with a hearing on the record 
within ten days or such later date as the tribal organization may 
approve. Such Secretary may decline to enter into a new contract or 
grant agreement and retain control of such program, activity, or service 
until such time as he is satisfied that the violations of rights or 
endangerment of health, safety, or welfare which necessitated the 
rescission has been corrected. In any hearing or appeal provided for 
under this section, the Secretary shall have the burden of proof to 
establish, by clearly demonstrating the validity of the grounds for 
rescinding, assuming, or reassuming the contract that is the subject of 
the hearing. Nothing in this section shall be construed as contravening 
the Occupational Safety and Health Act of 1970, as amended [29 U.S.C. 
651 et seq.].
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    \1\ See References in Text note below.
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(Pub. L. 93-638, title I, Sec. 109, Jan. 4, 1975, 88 Stat. 2212; Pub. L. 
100-581, title II, Sec. 211, Nov. 1, 1988, 102 Stat. 2941; Pub. L. 101-
301, Sec. 2(a)(10), May 24, 1990, 104 Stat. 207; Pub. L. 103-413, title 
I, Sec. 104(1), Oct. 25, 1994, 108 Stat. 4268.)

                       References in Text

    Sections 450g and 450h of this title, referred to in text, was in 
the original ``sections 103 and 104 of this Act'', meaning sections 103 
and 104 of Pub. L. 93-638, the Indian Self-Determination Act. Section 
103(a) and (b) and the first sentence of section 103(c) of Pub. L. 93-
638 were repealed, and the remainder of section 103(c) of Pub. L. 93-638 
was redesignated as section 102(d) of Pub. L. 93-638 (section 450f(d) of 
this title), by Pub. L. 100-472, title II, Sec. 201(b)(1), Oct. 5, 1988, 
102 Stat. 2289. Sections 104 and 105 of Pub. L. 93-638 were renumbered 
as sections 103 and 104, respectively, of Pub. L. 93-638 by sections 
202(a) and 203(a) of Pub. L. 100-472, and are classified to sections 
450h and 450i, respectively, of this title.
    The Occupational Safety and Health Act of 1970, as amended, referred 
to in text, is Pub. L. 91-596, Dec. 29, 1970, 84 Stat. 1590, as amended, 
which is classified principally to chapter 15 (Sec. 651 et seq.) of 
Title 29, Labor. For complete classification of this Act to the Code, 
see Short Title note set out under section 651 of Title 29 and Tables.


                               Amendments

    1994--Pub. L. 103-413 inserted ``or in the management of trust fund, 
trust lands or interests in such lands pursuant to such contract or 
grant agreement,'' after ``pursuant to such contract or grant 
agreement,'' and ``, in whole or in part,'' after ``rescind such 
contract or grant agreement'', substituted ``action as prescribed by the 
Secretary to remedy the contract deficiency, except that the appropriate 
Secretary may, upon written notice to a tribal organization, and the 
tribe served by the tribal organization, immediately rescind a contract 
or grant, in whole or in part, and resume control or operation of a 
program, activity, function, or service, if the Secretary finds that (i) 
there is an immediate threat of imminent harm to the safety of any 
person, or imminent substantial and irreparable harm to trust funds, 
trust lands, or interests in such lands, and (ii) such threat arises 
from the failure of the contractor to fulfill the requirements of the 
contract. In such cases, the Secretary'' for ``action as prescribed by 
him: Provided, That the appropriate Secretary may, upon notice to a 
tribal organization, immediately rescind a contract or grant and resume 
control or operation of a program, activity, or service if he finds that 
there is an immediate threat to safety and, in such cases, he'', struck 
out second period after ``the tribal organization may approve'', and 
inserted before last sentence ``In any hearing or appeal provided for 
under this section, the Secretary shall have the burden of proof to 
establish, by clearly demonstrating the validity of the grounds for 
rescinding, assuming, or reassuming the contract that is the subject of 
the hearing.''
    1990--Pub. L. 101-301 substituted ``providing notice and a hearing'' 
for ``providing notice and hearing''.
    1988--Pub. L. 100-581 inserted ``on the record'' after ``providing 
notice and hearing''.
    Pub. L. 100-581 which directed amendment of this section by 
substituting ``in such cases, he shall provide the tribal organization 
with a hearing on the record within ten days or such later date as the 
tribal organization may approve.'' for ``in such cases, he shall hold a 
hearing within ten days thereof'' was executed by substituting the new 
language for ``in such cases, he shall hold a hearing on such action 
within ten days thereof'' to reflect the probable intent of Congress.

                  Section Referred to in Other Sections

    This section is referred to in sections 450b, 450j, 2508, 3307 of 
this title.
