PUBLIC LAW 106-260—AUG. 18, 2000 114 STAT. 715 "(C) has demonstrated, for 3 fiscal years, financial stability and financial management capability. "(2) CRITERIA FOR DETERMINING FINANCIAL STABILITY AND FINANCIAL MANAGEMENT CAPACITY.— For purposes of this subsection, evidence that, during the 3-year period referred to in paragraph (1)(C), an Indian tribe had no uncorrected significant and material audit exceptions in the required annual audit of the Indian tribe's self-determination contracts or self- governance funding agreements with any Federal agency shall be conclusive evidence of the required stability and capability. "(d) PLANNING PHASE. — Each Indian tribe seeking participation in self-governance shall complete a planning phase. The planning phase shall be conducted to the satisfaction of the Indian tribe and shall include— "(1) legal and budgetary research; and "(2) internal tribal government planning and organizational preparation relating to the administration of health care programs. "(e) GRANTS.— Subject to the availability of appropriations, any Indian tribe meeting the requirements of paragraph (1)(B) and (C) of subsection (c) shall be eligible for grants— "(1) to plan for participation in self-governance; and "(2) to negotiate the terms of participation by the Indian tribe or tribal organization in self-governance, as set forth in a compact and a funding agreement. "(f) RECEIPT OF GRANT NOT REQUIRED. —Receipt of a grant under subsection (e) shall not be a requirement of participation in self-governance. " SEC. 504. COMPACTS. 25 USC "(a) COMPACT REQUIRED.— The Secretary shall negotiate and enter into a written compact with each Indian tribe participating in self-governance in a manner consistent with the Federal Government's trust responsibility, treaty obligations, and the governmentto-government relationship between Indian tribes and the United States. "(b) CONTENTS. — Each compact required under subsection (a) shall set forth the general terms of the government-to-government relationship between the Indian tribe and the Secretary, including such terms as the parties intend shall control year after year. Such compacts may only be amended by mutual agreement of the parties. "(c) EXISTING COMPACTS.—An Indian tribe participating in the Tribal Self-Governance Demonstration Project under title III on the date of the enactment of this title shall have the option at any time after the date of the enactment of this title to— "(1) retain the Tribal Self-Governance Demonstration Project compact of that Indian tribe (in whole or in part) to the extent that the provisions of that funding agreement are not directly contrary to any express provision of this title; or "(2) instead of retaining a compact or portion thereof under paragraph (1), negotiate a new compact in a manner consistent with the requirements of this title. "(d) TERM AND EFFECTIVE DATE. —The effective date of a compact shall be the date of the approval and execution by the Indian tribe or another date agreed upon by the parties, and shall remain
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