[Congressional Bills 105th Congress]
[From the U.S. Government Publishing Office]
[S. 1905 Reported in Senate (RS)]





                                                       Calendar No. 687

105th CONGRESS

  2d Session

                                S. 1905

                          [Report No. 105-363]

_______________________________________________________________________

                                 A BILL

  To provide for equitable compensation for the Cheyenne River Sioux 
                     Tribe, and for other purposes.

_______________________________________________________________________

                            October 2, 1998

                       Reported with an amendment





                                                       Calendar No. 687
105th CONGRESS
  2d Session
                                S. 1905

                          [Report No. 105-363]

  To provide for equitable compensation for the Cheyenne River Sioux 
                     Tribe, and for other purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                             April 2, 1998

  Mr. Daschle (for himself and Mr. Johnson) introduced the following 
  bill; which was read twice and referred to the Committee on Indian 
                                Affairs

                            October 2, 1998

              Reported by Mr. Campbell, with an amendment
 [Strike out all after the enacting clause and insert the part printed 
                               in italic]

_______________________________________________________________________

                                 A BILL


 
  To provide for equitable compensation for the Cheyenne River Sioux 
                     Tribe, and for other purposes.

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

<DELETED>SECTION 1. SHORT TITLE.</DELETED>

<DELETED>    (a) Short Title.--This Act may be cited as the ``Cheyenne 
River Sioux Tribe Equitable Compensation Act''.</DELETED>

<DELETED>SEC. 2. FINDINGS AND PURPOSES.</DELETED>

<DELETED>    (a) Findings.--The Congress finds that--</DELETED>
        <DELETED>    (1) Congress approved the Pick-Sloan Missouri 
        River Basin program by passing the Act of December 22, 1944, 
        commonly known as the ``Flood Control Act of 1944'' (58 Stat. 
        887, chapter 665; 33 U.S.C. 701-1 et seq.)--</DELETED>
                <DELETED>    (A) to promote the general economic 
                development of the United States;</DELETED>
                <DELETED>    (B) to provide for irrigation above Sioux 
                City, Iowa;</DELETED>
                <DELETED>    (C) to protect urban and rural areas from 
                devastating floods of the Missouri River; and</DELETED>
                <DELETED>    (D) for other purposes;</DELETED>
        <DELETED>    (2) the Oahe Dam and Reservoir project is a major 
        component of the Pick-Sloan program, and contributes to the 
        economy of the United States by generating a substantial amount 
        of hydropower and impounding a substantial quantity of 
        water;</DELETED>
        <DELETED>    (3) notwithstanding the contributions referred to 
        in paragraph (1), the Oahe Dam and Reservoir project has 
        contributed little to the economy of the Tribe;</DELETED>
        <DELETED>    (4) the Oahe Dam and Reservoir project overlies 
        the eastern boundary of the Crow Creek Indian 
        Reservation;</DELETED>
        <DELETED>    (5) the Oahe Dam and Reservoir project has--
        </DELETED>
                <DELETED>    (A) inundated the fertile, wooded bottom 
                lands of the Tribe along the Missouri River that 
                constituted the most productive agricultural and 
                pastoral lands of the Tribe and the homeland of the 
                members of the Tribe; and</DELETED>
                <DELETED>    (B) as a result of that inundation, 
                severely damaged the economy of the Tribe and the 
                members of the Tribe;</DELETED>
        <DELETED>    (6) the Secretary appointed a Joint Tribal 
        Advisory Committee that examined the Oahe Dam and Reservoir 
        project and that advisory committee correctly concluded that--
        </DELETED>
                <DELETED>    (A) the Federal Government did not 
                justify, or fairly compensate the Tribe for, the Oahe 
                Dam and Reservoir project when the Federal Government 
                acquired 104,492 acres of land of the Tribe for that 
                project; and</DELETED>
                <DELETED>    (B) the Tribe should be adequately 
                compensated for the taking described in subparagraph 
                (A); and</DELETED>
        <DELETED>    (7) after applying the same method of analysis 
        used for the compensation of similarly situated Indian tribes, 
        the Comptroller General of the United States determined the 
        amount of compensation for the taking described in paragraph 
        (6) and determined that the appropriate amount of compensation 
        to pay the Tribe for the taking would be 
        $290,722,958;</DELETED>
        <DELETED>    (8) the Tribe is entitled to receiving additional 
        financial compensation for the taking described in paragraph 
        (6)(A) in a manner consistent with the determination of the 
        Comptroller General under paragraph (7); and</DELETED>
        <DELETED>    (9) the establishment of a dual cash account with 
        the amounts made available to the Tribe under this Act is 
        consistent with the principles of self-governance and self-
        determination.</DELETED>
<DELETED>    (b) Purposes.--The purposes of this Act are as 
follows:</DELETED>
        <DELETED>    (1) To provide for additional financial 
        compensation to the Tribe for the taking of 104,402 acres of 
        land of the Tribe for the Oahe Dam and Reservoir project in a 
        manner consistent with the determination of the Comptroller 
        General of the United States described in subsection 
        (a)(7).</DELETED>
        <DELETED>    (2) To provide for the establishment of the 
        Cheyenne River Sioux Recovery Account, a dual cash account to 
        be managed by the Office in order to make payments to the Tribe 
        to carry out projects under a plan prepared by the 
        Tribe.</DELETED>

<DELETED>SEC. 3. DEFINITIONS.</DELETED>

<DELETED>    In this Act:</DELETED>
        <DELETED>    (1) Account.--The term ``account'' means the 
        Cheyenne River Sioux Recovery Account established under section 
        4.</DELETED>
        <DELETED>    (2) Cheyenne river sioux tribe; tribe.--The term 
        ``Cheyenne River Sioux Tribe'' or ``Tribe'' means the Itazipco, 
        Siha Sapa, Minnicoujou, and Oohenumpa bands of the Great Sioux 
        Nation that reside on the Cheyenne Reservation, located in 
        central South Dakota.</DELETED>
        <DELETED>    (3) Fund account.--The term ``Fund Account'' means 
        a consolidated account for tribal trust funds in the Treasury 
        of the United States that--</DELETED>
                <DELETED>    (A) is managed by the Secretary, through 
                the Office, in accordance with applicable law; 
                and</DELETED>
                <DELETED>    (B) as of the date of enactment of this 
                Act, is numbered 14X8365.</DELETED>
        <DELETED>    (4) Office.--The term ``Office'' means the Office 
        of Trust Fund Management within the Department of the 
        Interior.</DELETED>
        <DELETED>    (5) Program.--The term ``Program'' means the power 
        program of the Pick-Sloan Missouri River Basin program, 
        administered by the Western Area Power 
        Administration.</DELETED>
        <DELETED>    (6) Secretary.--The term ``Secretary'' means the 
        Secretary of the Interior.</DELETED>

<DELETED>SEC. 4. CHEYENNE RIVER SIOUX TRIBAL RECOVERY 
              ACCOUNT.</DELETED>

<DELETED>    (a) Cheyenne River Sioux Tribal Recovery Account.--The 
Secretary of the Treasury shall establish in the Fund Account a dual 
cash account to be known as the ``Cheyenne River Sioux Tribal Recovery 
Account''. The dual cash account shall have a principal component and 
an interest component. The interest component of the account shall be 
used to make payments to the Tribe in accordance with this Act. The 
principal component of the account may not be expended. The corpus and 
the income of the account may be invested in accordance with applicable 
law.</DELETED>
<DELETED>    (b) Funding.--</DELETED>
        <DELETED>    (1) In general.--Subject to paragraphs (2) and 
        (3), beginning with fiscal year 1999, and for each fiscal year 
        thereafter, until such time as the aggregate of the amounts 
        deposited is $290,722,958, the Secretary of the Treasury shall 
        deposit into the fund an amount equal to 10 percent of the 
        receipts from the deposits to the Treasury of the United States 
        for the preceding fiscal year from the Program.</DELETED>
        <DELETED>    (2) Percentage amount.--Beginning with fiscal year 
        2004, if no other law provides for the compensation to parties 
        in conjunction with an applicable plan for the Program, the 
        Secretary of the Treasury shall deposit into the fund an amount 
        equal to 25 percent of the receipts from the deposits to the 
        Treasury of the United States for the preceding fiscal year 
        from the Program, until such time as the aggregate of the 
        amounts deposited into the fund from such receipts and receipts 
        deposited under paragraph (1) equals the amount specified in 
        paragraph (1).</DELETED>
        <DELETED>    (3) Additional interest.--If, by the date that is 
        60 days after the end of a fiscal year, the Secretary of the 
        Treasury fails to deposit into the fund an amount determined 
        under paragraph (1) or (2), the Secretary of the Treasury shall 
        deposit, in addition the applicable amount required to be 
        deposited under paragraph (1) or (2), interest on the amount 
        required to be deposited, determined for the period beginning 
        on the day after the termination of that 60-day period and 
        ending on the date on which the amount determined under 
        paragraph (1) or (2) is deposited, and based on a rate of 
        interest that is commonly referred to as the Treasury overnight 
        rate.</DELETED>
<DELETED>    (c) Withdrawal.--</DELETED>
        <DELETED>    (1) In general.--Subject to paragraph (2), in 
        accordance with section 202 of the American Indian Trust Fund 
        Management Reform Act of 1994 (25 U.S.C. 4022), the Tribe may, 
        in accordance with that Act, voluntarily withdraw some or all 
        of the funds held in trust for the Tribe by the United States 
        and managed by the Secretary through the Office.</DELETED>
        <DELETED>    (2) Limitation.--No amount of principal withdrawn 
        under this subsection may be expended by the Tribe. The Tribe 
        may withdraw funds under this subsection on the condition that 
        the Tribe may expend only the interest earned on the 
        principal.</DELETED>
<DELETED>    (e) Payment of Interest to Tribe.--In accordance with this 
Act, the Secretary, acting through the Office, and in a manner 
consistent with the first section of the Act of June 24, 1938 (52 Stat. 
1037 et seq., chapter 648; 25 U.S.C. 162a) shall make payments to the 
Tribe from the interest credited to the interest component of the 
account, beginning at the end of the first fiscal year during which 
interest is credited to the account. The Tribe shall use the payments 
made under this subsection only for carrying out projects and programs 
pursuant to the plan prepared under subsection (f).</DELETED>
<DELETED>    (f) Plan.--</DELETED>
        <DELETED>    (1) In general.--The governing body of the Tribe 
        shall, not later than 18 months after the date of enactment of 
        this Act, prepare a plan for the use of the payments made to 
        the Tribe under subsection (e).</DELETED>
        <DELETED>    (2) Contents of plan.--The plan developed under 
        this subsection shall provide for the manner in which the Tribe 
        will expend the payments referred to in paragraph (1) to 
        promote--</DELETED>
                <DELETED>    (A) economic development;</DELETED>
                <DELETED>    (B) infrastructure development;</DELETED>
                <DELETED>    (C) the educational, health, recreational, 
                and social welfare objectives of the Tribe and its 
                members; or</DELETED>
                <DELETED>    (D) any combination of the activities 
                referred to in subparagraphs (A) through (C).</DELETED>
        <DELETED>    (3) Plan review and revision.--The Tribal Council 
        of the Tribe shall make available for review and comment by the 
        members of the Tribe a copy of the plan before the plan becomes 
        final, in accordance with procedures established by the Tribal 
        Council. The Tribal Council may, on an annual basis, update the 
        plan by revising the plan in a manner that provides the members 
        of the Tribe to review and comment on any proposed 
        revision.</DELETED>
        <DELETED>    (4) Audit.--The activities of the Tribe in 
        carrying out the plan under this subsection shall be audited as 
        part of an annual audit conducted for the Tribe. The auditors 
        that conduct the audit shall include in the written findings of 
        that audit a determination whether the funds received by the 
        Tribe under this section were expended in a manner consistent 
        with this section to carry out the plan under this 
        subsection.</DELETED>
<DELETED>    (g) Transfers; Limitations.--</DELETED>
        <DELETED>    (1) Withdrawal and transfer of funds.--In a manner 
        consistent with the requirements of this Act, upon request of 
        the Secretary of the Interior, the Secretary of the Treasury 
        shall withdraw amounts in the interest component of the account 
        and transfer such amounts to the Secretary of the Interior for 
        use in accordance with paragraph (2). The Secretary of the 
        Treasury may only withdraw funds from the account for the 
        purpose specificed in paragraph (2).</DELETED>
        <DELETED>    (2) Payments to tribe.--The Secretary of the 
        Interior shall use the amounts transferred under paragraph (1) 
        only for the purpose of making annual payments to the 
        Tribe.</DELETED>
        <DELETED>    (4) Prohibition on per capita payments.--No 
        portion of any payment made under this subsection may be 
        distributed to any member of the Tribe on a per capita 
        basis.</DELETED>

<DELETED>SEC. 5. ELIGIBILITY OF TRIBE FOR CERTAIN PROGRAMS AND 
              SERVICES.</DELETED>

<DELETED>    (a) In General.--No payment made to the Tribe pursuant to 
this Act shall result in the reduction or denial of any service or 
program to which, pursuant to Federal law--</DELETED>
        <DELETED>    (1) the Tribe is otherwise entitled because of the 
        status of the Tribe as a federally recognized Indian tribe; 
        or</DELETED>
        <DELETED>    (2) any individual who is a member of the Tribe is 
        entitled because of the status of the individual as a member of 
        the Tribe.</DELETED>
<DELETED>    (b) Exemptions from Taxation.--No payment made pursuant to 
this Act shall be subject to any Federal or State income tax.</DELETED>
<DELETED>    (c) Power Rates.--No payment made pursuant to this Act 
shall affect Pick-Sloan Missouri River Basin power rates.</DELETED>

<DELETED>SEC. 6. SALE OF WESTERN AREA POWER AUTHORITY.</DELETED>

<DELETED>    (a) In General.--If, before the amount specified in 
section 4(b)(1) is deposited into the Fund, the United States sells or 
otherwise transfers title to the assets and income of the Western Area 
Power Authority to an entity other than the United States--</DELETED>
        <DELETED>    (1) an amount of the proceeds from that sale equal 
        to the difference between the amount specified in section 
        4(b)(1) and the aggregate amount that, as of the sale of power 
        authority, had been paid into the Fund, shall be deposited in 
        the Fund; or</DELETED>
        <DELETED>    (2) the purchaser may assume responsibility for 
        making payments to the Treasury of the United States for 
        deposit in the Fund in amounts determined under section 
        4(b)(1).</DELETED>
<DELETED>    (b) Security.--If a purchaser assumes the responsibility 
for making the payments and shall provide the Tribe with appropriate 
security to secure those payments.</DELETED>

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Cheyenne River Sioux Tribe Equitable 
Compensation Act''.

SEC. 2. FINDINGS AND PURPOSES.

    (a) Findings.--The Congress finds that--
            (1) Congress approved the Pick-Sloan Missouri River Basin 
        program by passing the Act of December 22, 1944, commonly known 
        as the ``Flood Control Act of 1944'' (58 Stat. 887, chapter 
        665; 33 U.S.C. 701-1 et seq.)--
                    (A) to promote the general economic development of 
                the United States;
                    (B) to provide for irrigation above Sioux City, 
                Iowa;
                    (C) to protect urban and rural areas from 
                devastating floods of the Missouri River; and
                    (D) for other purposes;
            (2) the Oahe Dam and Reservoir project is a major component 
        of the Pick-Sloan program, and contributes to the economy of 
        the United States by generating a substantial amount of 
        hydropower and impounding a substantial quantity of water;
            (3) notwithstanding the contributions referred to in 
        paragraph (1), the Oahe Dam and Reservoir project has 
        contributed little to the economy of the Tribe;
            (4) the Oahe Dam and Reservoir project overlies the eastern 
        boundary of the Cheyenne River Sioux Indian Reservation;
            (5) the Oahe Dam and Reservoir project has--
                    (A) inundated the fertile, wooded bottom lands of 
                the Tribe along the Missouri River that constituted the 
                most productive agricultural and pastoral lands of the 
                Tribe and the homeland of the members of the Tribe; and
                    (B) as a result of that inundation, severely 
                damaged the economy of the Tribe and the members of the 
                Tribe;
            (6) the Secretary appointed a Joint Tribal Advisory 
        Committee that examined the Oahe Dam and Reservoir project and 
        that advisory committee concluded that--
                    (A) the Federal Government did not justify, or 
                fairly compensate the Tribe for, the Oahe Dam and 
                Reservoir project when the Federal Government acquired 
                104,492 acres of land of the Tribe for that project; 
                and
                    (B) the Tribe should be adequately compensated for 
                the acquisition described in subparagraph (A);
            (7) after applying the same method of analysis used for the 
        compensation of similarly situated Indian tribes, the 
        Comptroller General of the United States determined the amount 
        of compensation for the acquisition described in paragraph (6) 
        and determined that the appropriate amount of compensation to 
        pay the Tribe for the acquisition would be $290,722,958;
            (8) the Tribe is entitled to receiving additional financial 
        compensation for the acquisition described in paragraph (6)(A) 
        in a manner consistent with the determination of the 
        Comptroller General under paragraph (7); and
            (9) the establishment of a dual cash account with the 
        amounts made available to the Tribe under this Act is 
        consistent with the principles of self-governance and self-
        determination.
    (b) Purposes.--The purposes of this Act are as follows:
            (1) To provide for additional financial compensation to the 
        Tribe for the acquisition of 104,492 acres of land of the Tribe 
        for the Oahe Dam and Reservoir project in a manner consistent 
        with the determination of the Comptroller General of the United 
        States described in subsection (a)(7).
            (2) To provide for the establishment of the Cheyenne River 
        Sioux Tribal Recovery Account, a dual cash account to be 
        managed by the Office of Trust Fund Management of the 
        Department of the Interior in order to make payments to the 
        Tribe to carry out projects under a plan prepared by the Tribe.

SEC. 3. DEFINITIONS.

    In this Act:
            (1) Account.--The term ``account'' means the Cheyenne River 
        Sioux Tribal Recovery Account established under section 4.
            (2) Cheyenne river sioux tribe; tribe.--The term ``Cheyenne 
        River Sioux Tribe'' or ``Tribe'' means the Itazipco, Siha Sapa, 
        Minniconjou, and Oohenumpa bands of the Great Sioux Nation that 
        reside on the Cheyenne Reservation, located in central South 
        Dakota.
            (3) Fund.--The term ``Fund'' means a consolidated account 
        for tribal trust funds in the Treasury of the United States 
        that--
                    (A) is managed by the Secretary, through the 
                Office, in accordance with applicable law; and
                    (B) as of the date of enactment of this Act, is 
                numbered 14X8365.
            (4) Office.--The term ``Office'' means the Office of Trust 
        Fund Management within the Department of the Interior.
            (5) Program.--The term ``Program'' means the power program 
        of the Pick-Sloan Missouri River Basin program, administered by 
        the Western Area Power Administration.
            (6) Secretary.--The term ``Secretary'' means the Secretary 
        of the Interior.
            (7) Tribal council.--The term ``Tribal Council'' means the 
        governing body of the Tribe.

SEC. 4. CHEYENNE RIVER SIOUX TRIBAL RECOVERY ACCOUNT.

    (a) Cheyenne River Sioux Tribal Recovery Account.--The Secretary of 
the Treasury shall establish in the Fund a dual cash account to be 
known as the ``Cheyenne River Sioux Tribal Recovery Account''. The dual 
cash account shall have a principal component and an interest 
component. The interest component of the account shall be used to make 
payments to the Tribe in accordance with this Act. The principal 
component of the account may not be expended. The corpus and the income 
of the account may be invested in accordance with applicable law.
    (b) Funding.--
            (1) In general.--Subject to paragraphs (2) and (3), 
        beginning with fiscal year 1999, and for each fiscal year 
        thereafter, until such time as the aggregate of the amounts 
        deposited is $290,722,958, the Secretary of the Treasury shall 
        deposit into the Fund, to be credited to the Cheyenne River 
        Sioux Tribal Recovery Account, an amount equal to 10 percent of 
        the receipts from the deposits to the Treasury of the United 
        States for the preceding fiscal year from the Program.
            (2) Percentage amount.--Beginning with fiscal year 2004, if 
        no other law provides for the compensation to parties in 
        conjunction with an applicable plan for the Program, the 
        Secretary of the Treasury shall deposit into the Fund an amount 
        equal to 25 percent of the receipts from the deposits to the 
        Treasury of the United States for the preceding fiscal year 
        from the Program, until such time as the aggregate of the 
        amounts deposited into the Fund from such receipts and receipts 
        deposited under paragraph (1) equals the amount specified in 
        paragraph (1).
            (3) Additional interest.--If, by the date that is 60 days 
        after the end of a fiscal year, the Secretary of the Treasury 
        fails to deposit into the Fund an amount determined under 
        paragraph (1) or (2), the Secretary of the Treasury shall 
        deposit, in addition to the applicable amount required to be 
        deposited under paragraph (1) or (2), interest on the amount 
        required to be deposited, determined for the period beginning 
        on the day after the termination of that 60-day period and 
        ending on the date on which the amount determined under 
        paragraph (1) or (2) is deposited, and based on a rate of 
        interest that is commonly referred to as the Treasury overnight 
        rate.
    (c) Payment of Interest to Tribe.--
            (1) In general.--In accordance with this Act, the 
        Secretary, acting through the Office, and in a manner 
        consistent with the first section of the Act of June 24, 1938 
        (52 Stat. 1037 et seq., chapter 648; 25 U.S.C. 162a) and upon 
        request of the Tribe, shall make payments to the Tribe from the 
        interest credited to the interest component of the account, 
        beginning at the end of the first fiscal year during which 
        interest is credited to the account.
            (2) Use of payments.--The Tribe shall use the payments made 
        under this subsection only for carrying out projects and 
        programs pursuant to the plan prepared under subsection (d).
            (3) Tribal resolution.--Each request made by the Tribe 
        under paragraph (1) to withdraw funds shall be accompanied by a 
        resolution from the Tribal Council authorizing the withdrawal 
        of funds in a manner that complies with the terms of this Act.
    (d) Plan.--
            (1) In general.--The Tribal Council shall, not later than 
        18 months after the date of enactment of this Act, prepare a 
        plan for the use of the payments made to the Tribe under 
        subsection (c).
            (2) Contents of plan.--The plan developed under this 
        subsection shall provide for the manner in which the Tribe will 
        expend the payments referred to in paragraph (1) to promote--
                    (A) economic development;
                    (B) infrastructure development;
                    (C) the educational, health, recreational, and 
                social welfare objectives of the Tribe and its members; 
                or
                    (D) any combination of the activities referred to 
                in subparagraphs (A) through (C).
            (3) Plan review and revision.--The Tribal Council shall 
        make available for review and comment by the members of the 
        Tribe a copy of the plan before the plan becomes final, in 
        accordance with procedures established by the Tribal Council. 
        The Tribal Council may, on an annual basis, update the plan by 
        revising the plan in a manner that provides the members of the 
        Tribe to review and comment on any proposed revision. In 
        preparing the Plan and any revisions to update the Plan, the 
        Tribal Council shall consult with the Secretary of the Interior 
        and the Secretary of Health and Human Services.
            (4) Audit.--
                    (A) In general.--The activities of the Tribe in 
                carrying out the plan under this subsection shall be 
                audited as part of the annual single-agency audit the 
                Tribe is required to prepare pursuant to the Office of 
                Management and Budget circular numbered A-133.
                    (B) Written findings.--The auditors that conduct 
                the audit shall include in the written findings of that 
                audit a determination whether the funds received by the 
                Tribe under this section were expended in a manner 
                consistent with this section to carry out the plan 
                under this subsection. A copy of the written findings 
                of the audit shall be inserted in the published minutes 
                of the Tribal Council proceedings for the session at 
                which the audit is presented to the Tribal Council.
    (e) Prohibition on Per Capita Payments.--No portion of any payment 
made under this section may be distributed to any member of the Tribe 
on a per capita basis.
    (f) Pledge of Future Interest Income.--
            (1) In general.--Subject to paragraph (2), the Tribe may 
        enter into an agreement under which the Tribe pledges future 
        interest from the account as security for a loan or other 
        financial transaction.
            (2) Limitations.--The Tribe--
                    (A) may enter into an agreement under paragraph (1) 
                only in connection with the purchase of land or other 
                capital assets; and
                    (B) may not pledge, for any year under an agreement 
                referred to in paragraph (1), an amount greater than 40 
                percent of the income from interest from the account.

SEC. 5. ELIGIBILITY OF TRIBE FOR CERTAIN PROGRAMS AND SERVICES.

    (a) In General.--No payment made to the Tribe pursuant to this Act 
shall result in the reduction or denial of any service or program to 
which, pursuant to Federal law--
            (1) the Tribe is otherwise entitled because of the status 
        of the Tribe as a federally recognized Indian tribe; or
            (2) any individual who is a member of the Tribe is entitled 
        because of the status of the individual as a member of the 
        Tribe.
    (b) Exemptions From Taxation.--No payment made pursuant to this Act 
shall be subject to any Federal or State income tax.
    (c) Power Rates.--No payment made pursuant to this Act shall affect 
Pick-Sloan Missouri River Basin power rates.

SEC. 6. SALE OF WESTERN AREA POWER AUTHORITY.

    (a) In General.--If, before the amount specified in section 4(b)(1) 
is deposited into the Fund, the United States sells or otherwise 
transfers title to the assets and income of the Western Area Power 
Authority to an entity other than the United States--
            (1) an amount of the proceeds from that sale equal to the 
        difference between the amount specified in section 4(b)(1) and 
        the aggregate amount that, as of the sale of power authority, 
        had been paid into the Fund, shall be deposited in the Fund; or
            (2) the purchaser may assume responsibility for making 
        payments to the Treasury of the United States for deposit in 
        the Fund in amounts determined under section 4(b)(1).
    (b) Security.--If a purchaser assumes the responsibility for making 
the payments described in subsection (a)(2), the purchaser shall 
provide the Tribe with appropriate security to secure those payments.