[Congressional Bills 105th Congress]
[From the U.S. Government Publishing Office]
[H.R. 1604 Engrossed in House (EH)]


  1st Session

                               H. R. 1604

_______________________________________________________________________

                                 AN ACT

To provide for the division, use, and distribution of judgment funds of 
    the Ottawa and Chippewa Indians of Michigan pursuant to dockets 
 numbered 18-E, 58, 364, and 18-R before the Indian Claims Commission.
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
105th CONGRESS
  1st Session
                                H. R. 1604

_______________________________________________________________________

                                 AN ACT


 
To provide for the division, use, and distribution of judgment funds of 
    the Ottawa and Chippewa Indians of Michigan pursuant to dockets 
 numbered 18-E, 58, 364, and 18-R before the Indian Claims Commission.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. TABLE OF CONTENTS.

    The table of contents for this Act is as follows:

Sec.  1. Table of contents.
Sec.  2. Findings; purpose.
Sec.  3. Definitions.
Sec.  4. Division of funds.
Sec.  5. Development of tribal plans for use or distribution of funds.
Sec.  6. Preparation of judgment distribution roll of descendants.
Sec.  7. Plan for use and distribution of Bay Mills Indian Community 
                            funds.
Sec.  8. Plan for use of Sault Ste. Marie Tribe of Chippewa Indians of 
                            Michigan funds.
Sec.  9. Plan for use of Grand Traverse Band of Ottawa and Chippewa 
                            Indians of Michigan funds.
Sec. 10. Payment to newly recognized or reaffirmed tribes.
Sec. 11. Treatment of funds in relation to other laws.
Sec. 12. Treaties not affected.

SEC. 2. FINDINGS; PURPOSE.

    (a) Findings.--Congress finds the following:
            (1) Judgments were rendered in the Indian Claims Commission 
        in dockets numbered 18-E, 58, and 364 in favor of the Ottawa 
        and Chippewa Indians of Michigan and in docket numbered 18-R in 
        favor of the Sault Ste. Marie Tribe of Chippewa Indians.
            (2) The funds Congress appropriated to pay these judgments 
        have been held by the Department of the Interior for the 
        beneficiaries pending a division of the funds among the 
        beneficiaries in a manner acceptable to the tribes and 
        descendency group and pending development of plans for the use 
        and distribution of the respective tribes' share.
            (3) The 1836 treaty negotiations show that the United 
        States concluded negotiations with the Chippewa concerning the 
        cession of the upper peninsula and with the Ottawa with respect 
        to the lower peninsula.
            (4) A number of sites in both areas were used by both the 
        Ottawa and Chippewa Indians. The Ottawa and Chippewa Indians 
        were intermarried and there were villages composed of members 
        of both tribes.
    (b) Purpose.--It is the purpose of this Act to provide for the fair 
and equitable division of the judgment funds among the beneficiaries 
and to provide the opportunity for the tribes to develop plans for the 
use or distribution of their share of the funds.

SEC. 3. DEFINITIONS.

    For purposes of this Act the following definitions apply:
            (1) The term ``judgment funds'' means funds appropriated in 
        full satisfaction of judgments made in the Indian Claims 
        Commission--
                    (A) reduced by an amount for attorneys fees and 
                litigation expenses; and
                    (B) increased by the amount of any interest accrued 
                with respect to such funds.
            (2) The term ``dockets 18-E and 58 judgment funds'' means 
        judgment funds awarded in dockets numbered 18-E and 58 in favor 
        of the Ottawa and Chippewa Indians of Michigan.
            (3) The term ``docket 364 judgment funds'' means the 
        judgment funds awarded in docket numbered 364 in favor of the 
        Ottawa and Chippewa Indians of Michigan.
            (4) The term ``docket 18-R judgment funds'' means the 
        judgment funds awarded in docket numbered 18-R in favor of the 
        Sault Ste. Marie Band of Chippewa Indians.
            (5) The term ``judgment distribution roll of descendants'' 
        means the roll prepared pursuant to section 6.
            (6) The term ``Secretary'' means the Secretary of the 
        Interior.

SEC. 4. DIVISION OF FUNDS.

    (a) Docket 18-E and 58 Judgment Funds.--The Secretary shall divide 
the docket 18-E and 58 judgment funds as follows:
            (1) The lesser of 13.5 percent and $9,253,104.47, and 
        additional funds as described in this section, for newly 
        recognized or reaffirmed tribes described in section 10 and 
        eligible individuals on the judgment distribution roll of 
        descendants.
            (2) 34.6 percent to the Sault Ste. Marie Tribe of Chippewa 
        Indians of Michigan and the Bay Mills Indian Community, of 
        which--
                    (A) the lesser of 35 percent of the principal and 
                interest as of December 31, 1996, and $8,313,877 shall 
                be for the Bay Mills Indian Community; and
                    (B) the remaining amount (less $161,723.89 which 
                shall be added to the funds described in paragraph (1)) 
                shall be for the Sault Ste. Marie Tribe of Chippewa 
                Indians of Michigan.
            (3) 17.3 percent (less $161,723.89 which shall be added to 
        the funds described in paragraph (1)) to the Grand Traverse 
        Band of Ottawa and Chippewa Indians of Michigan.
            (4) 17.3 percent (less $161,723.89 which shall be added to 
        the funds described in paragraph (1)) to the Little Traverse 
        Bay Bands of Odawa Indians of Michigan.
            (5) 17.3 percent (less $161,723.89 which shall be added to 
        the funds described in paragraph (1)) to the Little River Band 
        of Ottawa Indians of Michigan.
            (6) Any funds remaining after distribution pursuant to 
        paragraphs (1) through (5) shall be divided and distributed to 
        each of the recognized tribes listed in this subsection in an 
        amount which bears the same ratio to the amount so divided and 
        distributed as the distribution of judgment funds pursuant to 
        each of paragraphs (2) through (5) bears to the total 
        distribution under all such paragraphs.
    (b) Docket 364 Judgment Funds.--The Secretary shall divide the 
docket 364 judgment funds as follows:
            (1) The lesser of 20 percent and $28,026.79 for newly 
        recognized or reaffirmed tribes described in section 10 and 
        eligible individuals on the judgment distribution roll of 
        descendants.
            (2) 32 percent to the Sault Ste. Marie Tribe of Chippewa 
        Indians of Michigan and the Bay Mills Indian Community, of 
        which--
                    (A) 35 percent shall be for the Bay Mills Indian 
                Community; and
                    (B) the remaining amount shall be for the Sault 
                Ste. Marie Tribe of Chippewa Indians of Michigan.
            (3) 16 percent to the Grand Traverse Band of Ottawa and 
        Chippewa Indians of Michigan.
            (4) 16 percent to the Little Traverse Bay Bands of Odawa 
        Indians of Michigan.
            (5) 16 percent to the Little River Band of Ottawa Indians 
        of Michigan.
            (6) Any funds remaining after distribution pursuant to 
        paragraphs (1) through (5) shall be divided and distributed to 
        each of the recognized tribes listed in this subsection in an 
        amount which bears the same ratio to the amount so divided and 
        distributed as the distribution of judgment funds pursuant to 
        each of paragraphs (2) through (5) bears to the total 
        distribution under all such paragraphs.
    (c) Docket 18-R Judgment Funds.--The Secretary shall divide the 
docket 18-R judgment funds as follows:
            (1) 65 percent to the Sault Ste. Marie Tribe of Chippewa 
        Indians of Michigan.
            (2) 35 percent to the Bay Mills Indian Community.
    (d) Amounts for Newly Recognized or Reaffirmed Tribes or 
Individuals on the Judgment Distribution Roll of Descendants Held in 
Trust.--Pending distribution under this Act to newly recognized or 
reaffirmed tribes described in section 10 or individuals on the 
judgment distribution roll of descendants, the Secretary shall hold 
amounts referred to in subsections (a)(1) and (b)(1) in trust.

SEC. 5. DEVELOPMENT OF TRIBAL PLANS FOR USE OR DISTRIBUTION OF FUNDS.

    (a) Disbursement of Funds.--(1) Except as provided in paragraphs 
(2), (3), and (4), the Secretary shall disburse each tribe's respective 
share of the judgment funds described in subsections (a), (b), and (c) 
of section 4 not later than 30 days after a plan for use and 
distribution of such funds has been approved in accordance with this 
section. Disbursement of a tribe's share shall not be dependent upon 
approval of any other tribe's plan.
    (2) Section 7 shall be the plan for use and distribution of the 
judgment funds described in subsections (a)(2)(A), (b)(2)(A), and 
(c)(2) of section 4. Such plan shall be approved upon the enactment of 
this Act and such funds shall be distributed by the Secretary to the 
Bay Mills Indian Community not later than 90 days after the date of the 
enactment of this Act to be used and distributed in accordance with 
section 7.
    (3) Section 8 shall be the plan for use and distribution of the 
judgment funds described in subsections (a)(2)(B), (b)(2)(B), and 
(c)(1) of section 4. Such plan shall be approved upon the enactment of 
this Act and such funds shall be distributed by the Secretary to the 
Sault Ste. Marie Tribe of Chippewa Indians of Michigan not later than 
90 days after the date of the enactment of this Act to be used and 
distributed in accordance with section 8.
    (4) Section 9 shall be the plan for use and distribution of the 
judgment funds described in subsections (a)(3) and (b)(3) of section 4. 
Such plan shall be approved upon the enactment of this Act and such 
funds shall be distributed by the Secretary to the Grand Traverse Band 
of Ottawa and Chippewa Indians of Michigan, not later than 90 days 
after the date of the enactment of this Act to be used and distributed 
in accordance with section 9.
    (b) Approval or Comment of Secretary.--(1) Except as otherwise 
provided in this Act, each tribe shall develop a plan for the use and 
distribution of its respective share of the judgment funds. The tribe 
shall hold a hearing or general membership meeting on its proposed 
plan. The tribe shall submit to the Secretary its plan together with an 
accompanying resolution of its governing body accepting such plan, a 
transcript of its hearings or meetings in which the plan was discussed 
with its general membership, any documents circulated or made available 
to the membership on the proposed plan, and comments from its 
membership received on the proposed plan.
    (2) Not later than 90 days after a tribe makes its submission under 
paragraph (1), the Secretary shall--
            (A) if the plan complies with the provisions of section 
        3(b) of the Indian Tribal Judgment Funds Use or Distribution 
        Act (25 U.S.C. 1403(b)), approve the plan; or
            (B) if the plan does not comply with the provisions of 
        section 3(b) of the Indian Tribal Judgment Funds Use or 
        Distribution Act (25 U.S.C. 1403(b)), return the plan to the 
        tribe with comments advising the tribe why the plan does not 
        comply with such provisions.
    (c) Response by Tribe.--The tribe shall have 60 days after receipt 
of comments under subsection (b)(2), or other time as the tribe and the 
Secretary agree upon, in which to respond to such comments and make 
such response by submitting a revised plan to the Secretary.
    (d) Submission to Congress.--(1) The Secretary shall, within 45 
days after receiving the governing body's comments under subsection 
(c), submit a plan to Congress in accordance with the provisions of 
section 3(b) of the Indian Tribal Judgment Funds Use or Distribution 
Act (25 U.S.C. 1403(b)). If the tribe does not submit a response 
pursuant to subsection (c), the Secretary shall, not later than 45 days 
after the end of the response time for such a response, submit a plan 
to Congress in accordance with the provisions of section 3(b) of the 
Indian Tribal Judgment Funds Use or Distribution Act (25 U.S.C. 
1403(b)).
    (2) If a tribe does not submit a plan to the Secretary within 8 
years of the date of enactment of this Act, the Secretary shall approve 
a plan which complies with the provisions of section 3(b) of the Indian 
Tribal Judgment Funds Use or Distribution Act (25 U.S.C. 1403(b)).
    (e) Governing Law After Approval by Secretary.--Once approved by 
the Secretary under this Act, the effective date of the plan and other 
requisite action, if any, is determined by the provisions of section 5 
of the Indian Tribal Judgment Funds Use or Distribution Act (25 U.S.C. 
1405).
    (f) Hearings Not Required.--Notwithstanding section 3 and section 4 
of the Indian Tribal Judgment Funds Use or Distribution Act (25 U.S.C. 
1403 and 25 U.S.C. 1404), the Secretary shall not be required to hold 
hearings or submit transcripts of any hearings held previously 
concerning the Indian judgments which are related to the judgment 
funds. The Secretary's submission of the plan pursuant to this Act 
shall comply with section 4 of the Indian Tribal Judgment Funds Use or 
Distribution Act (25 U.S.C. 1404).

SEC. 6. PREPARATION OF JUDGMENT DISTRIBUTION ROLL OF DESCENDANTS.

    (a) Preparation.--
            (1) In general.--The Secretary shall prepare, in accordance 
        with parts 61 and 62 of title 25, Code of Federal Regulations, 
        a judgment distribution roll of all citizens of the United 
        States who--
                    (A) were born on or before the date of enactment of 
                this Act;
                    (B) were living on the date of the enactment of 
                this Act;
                    (C) are of at least one-quarter Michigan Ottawa or 
                Chippewa Indian blood, or a combination thereof;
                    (D) are not members of the tribal organizations 
                listed in section 4;
                    (E) are lineal descendants of the Michigan Ottawa 
                or Chippewa bands or tribes that were parties to either 
                the 1820 treaty (7 Stat. 207), the 1836 treaty (7 Stat. 
                491), or the 1855 treaty (11 Stat. 621);
                    (F) are lineal descendants of at least one of the 
                groups described in subsection (d); and
                    (G) are not described in subsection (e).
            (2) Time limitations.--The judgment distribution roll of 
        descendants prepared pursuant to paragraph (1)--
                    (A) shall not be approved before 8 years after the 
                date of the enactment of this Act or a final 
                determination has been made regarding each petition 
                filed pursuant to section 10, whichever is earlier; and
                    (B) shall be approved not later than 9 years after 
                the date of the enactment of this Act.
    (b) Applications.--Applications for inclusion on the judgment 
distribution roll of descendants must be filed with the superintendent, 
Michigan agency, Bureau of Indian Affairs, Sault Ste. Marie, Michigan, 
not later than 1 year after the date of enactment of this Act.
    (c) Appeals.--Appeals arising under this section shall be handled 
in accordance with parts 61 and 62 of title 25, Code of Federal 
Regulations.
    (d) Groups.--The groups referred to in subsection (a)(1)(F) are 
Chippewa or Ottawa tribe or bands of--
            (1) Grand River, Traverse, Grand Traverse, Little Traverse, 
        Maskigo, or L'Arbre Croche, Cheboigan, Sault Ste. Marie, 
        Michilmackinac; and
            (2) any subdivisions of any groups referred to in paragraph 
        (1).
    (e) Ineligible Individuals.--An individual is not eligible under 
this section, if that individual--
            (1) received benefits pursuant to the Secretarial Plan 
        effective July 17, 1983, for the use and distribution of 
        Potawatomi judgment funds;
            (2) received benefits pursuant to the Secretarial Plan 
        effective November 12, 1977, for the use and distribution of 
        Saginaw Chippewa judgment funds;
            (3) is a member of the Keweenaw Bay Chippewa Indian 
        Community of Michigan on the date of the enactment of this Act;
            (4) is a member of the Lac Vieux Desert Band of Lake 
        Superior Chippewa Indians on the date of the enactment of this 
        Act; or
            (5) is a member of a tribe whose membership is 
        predominantly Potawatomi.
    (f) Use of Horace B. Durant Roll.--In preparing the judgment 
distribution roll of descendants under this section, the Secretary 
shall refer to the Horace B. Durant Roll, approved February 18, 1910, 
of the Ottawa and Chippewa Tribe of Michigan, as qualified and 
corrected by other rolls and records acceptable to the Secretary, 
including the Durant Field Notes of 1908-1909 and the Annuity Payroll 
of the Ottawa and Chippewa Tribe of Michigan approved May 17, 1910. The 
Secretary may employ the services of the descendant group enrollment 
review committees.
    (g) Payment of Funds.--Subject to section 10, not later than 90 
days after the approval by the Secretary of the judgment distribution 
roll of descendants prepared pursuant to this section, the Secretary 
shall distribute per capita the funds described in subsections (a)(1) 
and (b)(1) of section 4 to the individuals listed on that judgment 
distribution roll of descendants. Payment under this section--
            (1) to which a living, competent adult is entitled under 
        this Act shall be paid directly to that adult;
            (2) to which a deceased individual is entitled under this 
        Act shall be paid to that individual's heirs and legatees upon 
        determination of such heirs and legatees in accordance with 
        regulations prescribed by the Secretary; and
            (3) to which a legally incompetent individual or an 
        individual under 18 years of age is entitled under this Act 
        shall be paid in accordance with such procedures (including the 
        establishment of trusts) as the Secretary determines to be 
        necessary to protect and preserve the interests of that 
        individual.

SEC. 7. PLAN FOR USE AND DISTRIBUTION OF BAY MILLS INDIAN COMMUNITY 
              FUNDS.

    (a) Tribal Land Trust.--(1) The Executive Council of the Bay Mills 
Indian Community shall establish a nonexpendable trust to be known as 
the ``Land Trust''. Not later than 60 days after receipt of the funds 
distributed to the Bay Mills Indian Community pursuant to this Act, the 
Executive Council of the Bay Mills Indian Community shall deposit 20 
percent of the share of the Bay Mills Indian Community into the Land 
Trust.
    (2) The Executive Council shall be the trustee of the Land Trust 
and shall administer the Land Trust in accordance with this section. 
The Executive Council may retain or hire a professional trust manager 
and may pay the prevailing market rate for such services. Such payment 
for services shall be made from the current income accounts of the 
trust and charged against earnings of the current fiscal year.
    (3) The earnings generated by the Land Trust shall be used 
exclusively for improvements on tribal land or the consolidation and 
enhancement of tribal landholdings through purchase or exchange. Any 
land acquired with funds from the Land Trust shall be held as Indian 
lands are held.
    (4) The principal of the Land Trust shall not be expended for any 
purpose, including but not limited to, per capita payment to members of 
the Bay Mills Indian Community.
    (5) The Land Trust shall be maintained as a separate account, which 
shall be audited at least once during each fiscal year by an 
independent certified public accountant who shall prepare a report on 
the results of such audit. Such report shall be a public document, and 
shall be available for inspection by any member of the Bay Mills Indian 
Community.
    (6) Notwithstanding any other provision of law, the approval of the 
Secretary of any payment from the Land Trust shall not be required and 
the Secretary shall have no trust responsibility for the investment, 
supervision, administration, or expenditure of funds from the Land 
Trust.
    (b) Land Claims Distribution Trust.--(1) The Executive Council of 
the Bay Mills Indian Community shall establish a nonexpendable trust to 
be known as the ``Land Claims Distribution Trust Fund''. Not later than 
60 days after receipt of the funds distributed to the Bay Mills Indian 
Community pursuant to this Act, the Executive Council of the Bay Mills 
Indian Community shall deposit into the Land Claims Distribution Trust 
Fund the principal funds which shall consist of--
            (A) amounts remaining of the funds distributed to the Bay 
        Mills Indian Community after distribution pursuant to 
        subsections (a) and (c);
            (B) 10 percent of the annual earnings generated by the Land 
        Claims Distribution Trust Fund; and
            (C) such other funds which the Executive Council chooses to 
        add to the Land Claims Distribution Trust Fund.
    (2) The Executive Council shall be the trustee of the Land Claims 
Distribution Trust Fund and shall administer the Land Claims 
Distribution Trust Fund in accordance with this section. The Executive 
Council may retain or hire a professional trust manager and may pay for 
said services the prevailing market rate. Such payment for services 
shall be made from the current income accounts of the trust and charged 
against earnings of the current fiscal year.
    (3) 90 percent of the annual earnings of the Land Claims 
Distribution Trust Fund shall be distributed on October 1 of each year 
after the creation of the trust fund to any person who--
            (A) is enrolled as a member of the Bay Mills Indian 
        Community;
            (B) is at least 55 years of age as of the annual 
        distribution date; and
            (C)(i) has been enrolled as a member of the Bay Mills 
        Indian Community for a minimum of 25 years as of the annual 
        distribution date, or
            (ii) was adopted as a member of the Bay Mills Indian 
        Community on or before June 30, 1996.
    (4) In the event that a member of the Bay Mills Indian Community 
who is eligible for payment under subsection (b)(3), should die after 
preparation of the annual distribution roll and prior to the October 1 
distribution, that individual's share for that year shall be provided 
to the member's heirs at law.
    (5) In the event that a member of the Bay Mills Indian Community 
who is at least 55 years of age and who is eligible for payment under 
subsection (b)(3), shall have a guardian appointed for said individual, 
such payment shall be made to the guardian.
    (6) Under no circumstances shall any part of the principal of the 
Land Claims Distribution Trust Fund be distributed as a per capita 
payment to members of the Bay Mills Indian Community, or used or 
expended for any other purpose by the Executive Council.
    (7) The Land Claims Distribution Trust Fund shall be maintained as 
a separate account, which shall be audited at least once during each 
fiscal year by an independent certified public accountant who shall 
prepare a report on the results of such audit. Such report shall be a 
public document and shall be available for inspection by any member of 
the Bay Mills Indian Community.
    (8) Notwithstanding any other provision of law, the approval of the 
Secretary of any payment from the Land Claims Distribution Trust Fund 
shall not be required and the Secretary shall have no trust 
responsibility for the investment, supervision, administration, or 
expenditure of the Fund.
    (c) Land Claims Initial Payment.--As compensation to the members of 
the Bay Mills Indian Community for the delay in distribution of the 
judgment fund, payment shall be made by the Executive Council within 30 
days of receipt of the Bay Mills Indian Community's share of the 
judgment fund from the Secretary, as follows:
            (1) The sum of $3,000 to each enrolled member of the Bay 
        Mills Indian Community living on the date of enactment of this 
        legislation, who has attained the age of 55 years, but is less 
        than 62 years of age, if that individual was adopted into or a 
        member of the Bay Mills Indian Community on or before June 30, 
        1996.
            (2) The sum of $5,000 to each enrolled member of the Bay 
        Mills Indian Community living on the date of enactment of this 
        legislation, who is at least 62 years of age and less than and 
        70 years of age, if that individual was adopted into or a 
        member of the Bay Mills Indian Community on or before June 30, 
        1996.
            (3) The sum of $10,000 to each enrolled member of the Bay 
        Mills Indian Community living on the date of enactment of this 
        legislation, who is 70 years of age or older, if that 
        individual was adopted into or a member of the Bay Mills Indian 
        Community on or before June 30, 1996.
    (d) Annual Payments From Land Claims Distribution Trust Fund.--The 
Executive Council shall prepare the annual distribution roll and ensure 
its accuracy prior to August 30 of each year prior to distribution. The 
distribution roll shall identify each member of the Bay Mills Indian 
Community who, on the date of distribution, will have attained the 
minimum age and membership duration required for distribution 
eligibility, as specified in subsection (b)(3). The number of eligible 
persons in each age category defined in this subsection, multiplied by 
the number of shares for which the age category is entitled, added 
together for the 3 categories, shall constitute the total number of 
shares to be distributed each year. On each October 1, the shares shall 
be distributed as follows:
            (1) Each member who is at least 55 years of age and less 
        than 62 years of age shall receive 1 share.
            (2) Each member who is between the ages of 62 and 69 years 
        shall receive 2 shares.
            (3) Each member who is 70 years of age or older shall 
        receive 3 shares.

SEC. 8. PLAN FOR USE OF SAULT STE. MARIE TRIBE OF CHIPPEWA INDIANS OF 
              MICHIGAN FUNDS.

    (a) Self-Sufficiency Fund.--
            (1) The Sault Ste. Marie Tribe of Chippewa Indians of 
        Michigan (referred to in this section as the ``Sault Ste. Marie 
        Tribe''), through its board of directors, shall establish a 
        trust fund for the benefit of the Sault Ste. Marie Tribe which 
        shall be known as the ``Self-Sufficiency Fund''. The principal 
        of the Self-Sufficiency Fund shall consist of--
                    (A) the Sault Ste. Marie Tribe's share of the 
                judgment funds transferred by the Secretary to the 
                board of directors pursuant to subsection (e);
                    (B) such amounts of the interest and other income 
                of the Self-Sufficiency Fund as the board of directors 
                may choose to add to the principal; and
                    (C) any other funds that the board of directors of 
                the Sault Ste. Marie Tribe chooses to add to the 
                principal.
            (2) The board of directors shall be the trustee of the 
        Self-Sufficiency Fund and shall administer the Fund in 
        accordance with the provisions of this section.
    (b) Use of Principal.--
            (1) The principal of the Self-Sufficiency Fund shall be 
        used exclusively for investments or expenditures which the 
        board of directors determines--
                    (A) are reasonably related to--
                            (i) economic development beneficial to the 
                        tribe; or
                            (ii) development of tribal resources;
                    (B) are otherwise financially beneficial to the 
                tribe and its members; or
                    (C) will consolidate or enhance tribal 
                landholdings.
            (2) At least one-half of the principal of the Self-
        Sufficiency Fund at any given time shall be invested in 
        investment instruments or funds calculated to produce a 
        reasonable rate of return without undue speculation or risk.
            (3) No portion of the principal of the Self-Sufficiency 
        Fund shall be distributed in the form of per capita payments.
            (4) Any lands acquired using amounts from the Self-
        Sufficiency Fund shall be held as Indian lands are held.
    (c) Use of Self-Sufficiency Fund Income.--The interest and other 
investment income of the Self-Sufficiency Fund shall be distributed--
            (1) as an addition to the principal of the Fund;
            (2) as a dividend to tribal members;
            (3) as a per capita payment to some group or category of 
        tribal members designated by the board of directors;
            (4) for educational, social welfare, health, cultural, or 
        charitable purposes which benefit the members of the Sault Ste. 
        Marie Tribe; or
            (5) for consolidation or enhancement of tribal lands.
    (d) General Rules and Procedures.--
            (1) The Self-Sufficiency Fund shall be maintained as a 
        separate account.
            (2) The books and records of the Self-Sufficiency Fund 
        shall be audited at least once during each fiscal year by an 
        independent certified public accountant who shall prepare a 
        report on the results of such audit. Such report shall be 
        treated as a public document of the Sault Ste. Marie Tribe and 
        a copy of the report shall be available for inspection by any 
        enrolled member of the Sault Ste. Marie Tribe.
    (e) Transfer of Judgment Funds to Self-Sufficiency Fund.--
            (1) The Secretary shall transfer to the Self-Sufficiency 
        Fund the share of the funds which have been allocated to the 
        Sault Ste. Marie Tribe pursuant to section 4.
            (2) Notwithstanding any other provision of law, after the 
        transfer required by paragraph (1) the approval of the 
        Secretary for any payment or distribution from the principal or 
        income of the Self-Sufficiency Fund shall not be required and 
        the Secretary shall have no trust responsibility for the 
        investment, administration, or expenditure of the principal or 
        income of the Self-Sufficiency Fund.
    (f) Lands Acquired Using Interest or Other Income of the Self-
Sufficiency Fund.--Any lands acquired using amounts from interest or 
other income of the Self-Sufficiency Fund shall be held in trust by the 
Secretary for the benefit of the tribe.

SEC. 9. PLAN FOR USE OF GRAND TRAVERSE BAND OF OTTAWA AND CHIPPEWA 
              INDIANS OF MICHIGAN FUNDS.

    (a) Land Claims Distribution Trust Fund.--(1) The share of the 
Grand Traverse Band of Ottawa and Chippewa Indians of Michigan 
(hereafter in this section referred to as the ``Band''), as determined 
pursuant to subsections (a)(3) and (b)(3) of section 4, shall be 
deposited by the Secretary in a nonexpendable trust fund to be 
established by the Tribal Council of the Band to be known as the ``Land 
Claims Distribution Trust Fund'' (hereafter in this section referred to 
as the ``Trust Fund'').
    (2) The principal of the Trust Fund shall consist of--
            (A) the funds deposited into the Trust Fund by the 
        Secretary pursuant to this subsection;
            (B) annual earnings of the Trust Fund which shall be 
        retained, and added to the principal; and
            (C) such other funds as may be added to the Trust Fund by 
        action of the Tribal Council of the Band.
    (b) Management of the Trust Fund.--The Tribal Council of the Band 
shall be the trustee of the Trust Fund and shall administer the Fund in 
accordance with this section. In carrying out this responsibility, the 
Tribal Council may retain or hire a professional trust manager and may 
pay the prevailing market rate for such services. Such payment for 
services shall be made from the current income accounts of the Trust 
Fund and charged against the earnings of the fiscal year in which the 
payment becomes due.
    (c) Trust Fund as Loan Collateral.--(1) The Trust Fund shall be 
used by the Band as collateral to secure a bank loan equal to 80 
percent of the principal of the Trust Fund at the lowest interest rate 
then available. Such loan shall be used by the Band to make a one-time 
per capita payment to all eligible members.
    (2) The loan secured pursuant to this subsection shall be amortized 
by the earnings of the Trust Fund. The Tribal Council of the Band shall 
have the authority to invest the principal of the Trust Fund on market 
risk principles that will ensure adequate payments of the debt 
obligation while at the same time protecting the principal.
    (d) Elders' Land Claim Distribution Trust Fund.--(1) Upon the 
retirement of the loan obtained pursuant to subsection (c), the Tribal 
Council shall establish the Grand Traverse Band Elders' Land Claims 
Distribution Trust Fund (hereafter in this section referred to as the 
``Elders' Trust Fund''). There shall be deposited into the Elders' 
Trust Fund the principal and all accrued earnings that are in the Land 
Claims Distribution Trust Fund on the date of retirement of such loan.
    (2) Upon establishment of the Elders' Trust Fund, the Tribal 
Council of the Band shall make a one-time payment to any person who is 
living on the date of the establishment of the Elders' Trust Fund, and 
who was an enrolled member of the Band for at least 2 years prior to, 
the date of the enactment of this Act as follows:
            (A) $500 for each member who has attained the age of 55 
        years, but is less than 62 years of age.
            (B) $1,000 for each member who has attained the age of 62 
        years, but is less than 70 years of age.
            (C) $2,500 for each member who is 70 years of age or older.
    (3) After distribution pursuant to paragraph (2), the net annual 
earnings of the Elders' Trust Fund shall be distributed as follows:
            (A) 90 percent shall be distributed on October 1 of each 
        year after the creation of the Elder's Trust Fund to all living 
        enrolled members of the Band who have attained the age of 55 
        years upon such date, and who shall have been an enrolled 
        member of the Band for not less than 2 years upon such date.
            (B) 10 percent shall be added to the principal of the 
        Elders' Trust Fund.
    (4) Distribution pursuant to paragraph (3)(A) shall be as follows:
            (A) One share for each person on the current annual Elders' 
        roll who has attained the age of 55 years, but is less than 62 
        years of age.
            (B) Two shares for each person who has attained the age of 
        62 years, but is less than 70 years of age.
            (C) Three shares for each person who is 70 years of age or 
        older.
    (5) None of the funds in the Elders' Trust Fund shall be 
distributed or expended for any purpose other than as provided in this 
subsection.
    (6) The Elders' Trust Fund shall be maintained as a separate 
account, which shall be audited at least once during each fiscal year 
by an independent certified public accountant who shall prepare a 
report on the results of such audit. Such report shall be reasonably 
available for inspection by the members of the Band.
    (7) The Tribal Council of the Band shall prepare an annual Elders' 
distribution roll and ensure its accuracy prior to August 30 of each 
year. The roll shall identify each member of the Band who has attained 
the minimum age and membership duration required for distribution 
eligibility pursuant to paragraph (3)(A).
    (e) General Provisions.--(1) In the event that a tribal member 
eligible for a payment under this section shall die after preparation 
of the annual distribution roll, but prior to the distribution date, 
such payment shall be paid to the estate of such member.
    (2) In any case where a legal guardian has been appointed for a 
person eligible for a payment under this section, payment of that 
person's share shall be made to such guardian.
    (f) No Secretarial Responsibilities for Trust Fund.--The Secretary 
shall have no trust responsibility for the investment, supervision, 
administration, or expenditure of the Land Claims Distribution Trust 
Fund or the Elders' Trust Fund.

SEC. 10. PAYMENT TO NEWLY RECOGNIZED OR REAFFIRMED TRIBES.

    (a) Eligibility.--In order to be eligible for tribal funds under 
this Act, a tribe that is not federally recognized or reaffirmed on the 
date of the enactment of this Act--
            (1) must be a signatory to either the 1836 treaty (7 Stat. 
        491) or the 1855 treaty (11 Stat. 621);
            (2) must have a membership that is predominantly Chippewa 
        and Ottawa;
            (3) shall not later than 6 months after the date of the 
        enactment of this Act, submit to the Bureau of Indian Affairs a 
        letter of intent for Federal recognition if such a letter is 
        not on file with the Bureau of Indian Affairs; and
            (4) shall not later than 3 years after the date of the 
        enactment of this Act, submit to the Bureau of Indian Affairs a 
        documented petition for Federal recognition if such a petition 
        is not on file with the Bureau of Indian Affairs.
    (b) Distribution of Funds Allotted for Newly Recognized or 
Reaffirmed Tribes.--Not later than 90 days after a tribe that has 
submitted a timely petition pursuant to subsection (a) is federally 
recognized or reaffirmed, the Secretary shall segregate and hold in 
trust for such tribe, its respective share of the funds described in 
sections 4(a)(1) and (b)(1), $3,000,000 plus 30 percent of any income 
earned on the funds described in section 4(a)(1) and (b)(1) up to the 
date of such distribution.
    (c) Distribution of Funds Allotted for Certain Individuals.--If, 
after the date of the enactment of this Act and before approval by the 
Secretary of the judgment distribution roll of descendants, Congress or 
the Secretary recognizes a tribe which has as a member an individual 
that is listed on the judgment distribution roll of descendants as 
approved pursuant to section 6, the Secretary shall, not later than 90 
days after the approval of such judgment distribution roll of 
descendants, remove that individual's name from the descendants roll 
and reallocate the funds allotted for that individual to the fund 
established for such newly recognized or reaffirmed tribe.
    (d) Funds Subject to Plan.--Funds held in trust for a newly 
recognized or reaffirmed tribe shall be subject to plans that are 
approved in accordance with this Act.
    (e) Determination of Membership in Newly Recognized or Reaffirmed 
Tribe.--
            (1) Submission of membership roll.--For purposes of this 
        section--
                    (A) if the tribe is acknowledged by the Secretary 
                under part 83 of title 25, Code of Federal Regulations, 
                the Secretary shall use the tribe's most recent 
                membership list provided under such part;
                    (B) unless otherwise provided by the statutes which 
                recognizes the tribe, if Congress recognizes a tribe, 
                the Secretary shall use the most recent membership list 
                provided to Congress. If no membership list is provided 
                to Congress, the Secretary shall use the most recent 
                membership list provided with the tribe's petition for 
                acknowledgment under part 83 of title 25, Code of 
                Federal Regulations. If no such list was provided to 
                Congress or under such part, the newly recognized tribe 
                shall submit a membership list to the Secretary before 
                the judgment distribution roll of descendants is 
                approved or the judgment funds shall be distributed per 
                capita pursuant to section 6;
                    (C) a tribe that has submitted a membership roll 
                pursuant to this section may update its membership 
                rolls not later than 180 days before distribution 
                pursuant to section 6.
            (2) Failure to submit updated membership roll.--If a 
        membership list was not provided--
                    (A) to the Secretary, the Secretary will use the 
                tribe's most recent membership list provided to the 
                Bureau of Indian Affairs in their petition for Federal 
                acknowledgment filed under part 83 of title 25, Code of 
                Federal Regulations, unless otherwise provided in the 
                statute which recognized the tribe;
                    (B) to the Bureau of Indian Affairs, the newly 
                recognized or reaffirmed tribe shall submit a 
                membership list before the judgment distribution roll 
                of descendants is approved by the Secretary, unless 
                otherwise provided in the statute which recognized the 
                tribe; and
                    (C) before the judgment distribution roll of 
                descendants is approved, the judgment funds shall be 
                distributed per capita pursuant to section 6.

SEC. 11. TREATMENT OF FUNDS IN RELATION TO OTHER LAWS.

    The eligibility for or receipt of distributions under this Act by a 
tribe or individual shall not considered as income, resources, or 
otherwise when determining the eligibility for or computation of any 
payment or other benefit to such tribe, individual, or household 
under--
            (1) any financial aid program of the United States, 
        including grants and contracts subject to the Indian Self-
        Determination Act; or
            (2) any other benefit to which such tribe, household, or 
        individual would otherwise be entitled under any Federal or 
        federally assisted program.

SEC. 12. TREATIES NOT AFFECTED.

    No provision of this Act shall be construed to constitute an 
amendment, modification, or interpretation of any treaty to which a 
tribe mentioned in this Act is a party nor to any right secured to such 
a tribe or to any other tribe by any treaty.

            Passed the House of Representatives November 4, 1997.

            Attest:

                                                                 Clerk.