1.This Act may be cited as the
Native American Challenge
Demonstration Project Act of 2011
.
2.Congress finds that—
(1)the efforts of
the United States to foster job creation, community, economic, and business
development in geographically remote Native American communities is often
hampered by fragmentation of authority, responsibility, and performance under
various Federal economic development assistance programs;
(2)the effectiveness
of Federal and tribal efforts to generate jobs and employment opportunities in
traditional Native American communities, home to indigenous people for
thousands of years, depends on better, more flexible, and more cooperative
arrangements among the various Federal agencies and Indian tribes; and
(3)the United States
has committed to a policy of tribal self-governance that—
(A)respects the
value of self-determination of Native people; and
(B)is well-suited to
delivery of aid in the form of compacts that recognize self-governance yet
provide a basis for more effective delivery of economic development aid.
3.The purposes of this Act are—
(1)to increase
opportunities for job creation and long-term economic development by
establishing a demonstration project designed to adapt the lessons of foreign
aid to underdeveloped economies, such as the experience of the Millennium
Challenge Corporation, to the provision of Federal economic development
assistance to similarly situated remote Native American communities;
(2)to enable Indian
tribes and tribal organizations to use available Federal assistance more
effectively and efficiently;
(3)to reduce
joblessness in a manner consistent with the policy of self-determination,
including furthering tribal self-governance; and
(4)to demonstrate
the manner in which Federal economic development assistance to certain remote
Native American communities may be administered effectively in a manner
that—
(A)promotes the
creation of jobs, economic growth, and the elimination of poverty;
(B)strengthens good
governance, entrepreneurship, and investment in Native American communities;
and
(C)promotes
sustainable economic growth in a manner that promotes self-determination and
self-sufficiency among remote Native American communities while preserving the
cultural values of those communities.
4.In this Act:
(1)Commitment to
developmentThe term commitment to development means
a commitment to job creation, poverty reduction, and economic growth, as
demonstrated through activities for—
(A)entrepreneurship
and job creation;
(B)an increase in
worker productivity and innovation; or
(C)private sector
development.
(2)The
term compact means a binding agreement with the United States,
with a term not to exceed 5 years, entered into pursuant to this Act.
(3)The term demonstration project means the
Native American Millennium Challenge Demonstration Project established under
section 5(a).
(4)Economic
development strategyThe term economic development
strategy means a strategy—
(A)written by an
eligible entity and designed to create jobs, achieve sustainable economic
growth, and reduce poverty over a defined period; and
(B)developed in
consultation with public and private sector entities, as appropriate to the
geographical area and intended beneficiaries of the compact.
(5)The term eligible entity means—
(A)an Indian
tribe;
(B)a tribal
organization;
(C)a consortium of
Indian tribes or tribal organizations; and
(D)after
consultation with the Secretary of the Interior, a Native Hawaiian
organization.
(6)The term Indian tribe has the meaning given
the term in section 4 of the Indian Self-Determination and Education Assistance
Act (25 U.S.C. 450b).
(7)The
term Secretary means the Secretary of Commerce.
(8)The term tribal organization has the
meaning given the term in section 4 of the Indian Self-Determination and
Education Assistance Act (25 U.S.C. 450b).
5.Native American
millennium challenge demonstration project
(a)The
Secretary shall establish and implement in the Department of Commerce a
demonstration project, to be known as the Native American Millennium
Challenge Demonstration Project
.
(b)
(1)The lead agency for carrying out this Act and the
demonstration project shall be the Department of Commerce.
(2)Memorandum of
understandingThe Secretary shall establish a Memorandum of
Understanding with participating Federal agencies that defines responsibilities
under this Act.
(c)Form of
assistance under a compactAssistance under the demonstration
project—
(1)shall be provided
in the form of multiyear funding agreements established under the applicable
compact;
(2)may not be
provided in the form of loans;
(3)may not be used
for gaming activities covered by the Indian Gaming Regulatory Act (25 U.S.C.
2701 et seq.); and
(4)shall be provided
in a manner that authorizes the eligible entity, the Secretary, and the heads
of other Federal agencies—
(A)to reallocate,
reprogram, or modify budget allocations and amounts for use by the eligible
entity under the terms of the compact; and
(B)specify the
procedures to be used.
(d)
(1)To improve the effectiveness of Federal economic
development assistance by encouraging the coordination of that assistance in
remote Native American communities and except as specifically prohibited by any
other provision of law (including regulations), the provision of assistance
under this section may be coordinated with Federal economic development
assistance provided for Indian tribes and members of Indian tribes by—
(A)the Department of
Agriculture;
(B)the Department of
Commerce;
(C)the Department of
Energy;
(D)the Department of
Health and Human Services (other than the Indian Health Service);
(E)the Department of
Housing and Urban Development (excluding any economic assistance under title I
of the Native American Housing Assistance and Self-Determination Act of 1996
(25 U.S.C. 4111 et seq.));
(F)the Department of
the Interior;
(G)the Small
Business Administration; and
(H)any other Federal
agencies and instrumentalities that the Secretary determines to be
appropriate.
(2)On execution of a compact with an eligible entity, the
Secretary, in cooperation with the heads of other Federal agencies and in
accordance with paragraph (1), shall—
(A)provide unified
accounting, budgeting, and auditing standards for all Federal funding and
programs covered by this Act; and
(B)may authorize the
eligible entity to coordinate the federally funded economic development
assistance programs of the eligible entity in a manner that integrates the
program services into a single, coordinated program.
(e)The programs that may be integrated under the
demonstration project include any program—
(1)under which an
eligible entity is eligible for receipt of funds under a statutory or
administrative formula for economic development purposes; and
(2)for which there
is no specific statutory or regulatory prohibition preventing agency or
departmental participation.
(f)
(1)On receipt of an executed compact, the Secretary shall
consult with the eligible entity that is a party to the compact and the
Secretary of each Federal agency that provides funds to be used to implement
the compact to identify any potentially necessary or advisable waiver of
statutory requirements or applicable regulations, policies, or procedures
necessary to enable the eligible entity to implement the compact.
(2)Notwithstanding
any other provision of law, on the request of an eligible entity that has
entered into a compact pursuant to this Act, the Secretary of each affected
agency shall waive any applicable statutory, regulatory, or administrative
requirement, regulation, policy, or procedure promulgated by that agency that
has been identified by participating agencies and eligible entities as
impairing the purposes of this Act.
(g)For the purposes of matching requirements under
Federal law, funds provided under funding agreements entered into pursuant to
this Act, and all funds provided under contracts or grants made pursuant to
this Act, shall be treated as non-Federal funds.
(h)In no case shall the amount of Federal funds available to
an eligible entity involved in any demonstration project be reduced as a result
of the enactment of this Act.
(i)Interagency
transfer of funds authorizedThe Secretary of a participating
Federal agency may take such action as is necessary to provide for an
interagency transfer of funds to further the purposes of this Act.
6.Native American
Challenge compacts
(a)Native American
challenge compacts
(1)
(A)The Secretary shall develop a selection process for
proposals for compacts submitted by eligible entities.
(B)On completion of a selection process, the Secretary shall
enter into such compacts as are selected in accordance with the selection
process.
(2)
(A)The Secretary shall develop an application process for
eligible entities to enter into Native American Challenge Compacts under this
Act.
(B)
(i)An eligible entity shall inform the Secretary of the
intent of the eligible entity to enter into a Native American Challenge compact
by resolution or other official action by the governing body of the eligible
entity.
(ii)Each eligible entity that seeks to enter into a compact
shall complete a planning phase that includes—
(I)legal and
budgetary research;
(II)organizational
preparation; and
(III)the development
of an economic development strategy.
(C)Criteria for
the selection of eligible entitiesIn establishing criteria for
the selection of eligible entities under this section, the Secretary shall
consider whether an eligible entity—
(i)has
successfully completed the planning phase described in subparagraph
(B)(ii);
(ii)has demonstrated
financial stability and financial management capacity as evidenced by the
eligible entity having no material audit exceptions for the 3 fiscal years
preceding the fiscal year for which the requested participation is being made;
and
(iii)has a plan to
demonstrate accountability for the use of funds provided under this Act.
(D)Priority and
considerations
(i)In
selecting eligible entities under this section, the Secretary shall give
priority to rural and remote eligible entities for which the average
unemployment rate or rate of poverty for Native Americans residing in census
districts in which the eligible entity is located is at or near the highest
average unemployment rate or rate of poverty in the applicable State.
(ii)In
selecting eligible entities under this section, the Secretary shall take into
consideration—
(I)the purposes of
this Act, giving priority to job creation, entrepreneurship, and long-term
sustainable economic growth in the communities of the eligible entity;
(II)the remote and
rural nature, general economic status, and poverty rate of the communities to
be served; and
(III)the commitment
of the eligible entity to improve short-term economic conditions and create
long-term sustainable development of the communities to be served.
(b)Assistance for
development of compactsThe Secretary may make grants to any
eligible entity to facilitate the development and planning of a compact between
the United States and the eligible entity.
(c)
(1)A compact shall be negotiated between the eligible entity
and the Secretary.
(2)A
compact shall contain elements necessary to achieve the economic development
strategy, including—
(A)a description of
the specific objectives for the reduction of poverty through the creation of
jobs and economic development that is expected to be achieved throughout the
duration of the compact, including a description of the respective roles and
responsibilities of the eligible entity and the United States in the
achievement of those objectives;
(B)an identification
of the programs to be included in the compact and a description of—
(i)the
manner in which the programs are to be integrated and delivered; and
(ii)the results
expected from the plan;
(C)an identification
of any private financial support or partnerships with industry or the private
market to achieve development;
(D)a list and
description of—
(i)regular
benchmarks to measure progress toward achieving the specific objectives;
and
(ii)a
methodology for analysis of the results;
(E)an identification
of intended beneficiaries, disaggregated by income level, gender, and age, to
the maximum extent practicable;
(F)an identification
of any statutory provisions, regulations, policies, or procedures that need to
be waived to implement the plan;
(G)a multiyear
financial plan to guide the implementation of the compact;
(H)a description of
proposed mechanisms to execute the plan;
(I)a requirement
that the compact be approved by the governing body of the affected eligible
entity;
(J)a plan to ensure
appropriate fiscal accountability for the funds included in the compact;
and
(K)a requirement for
annual reports as described in section 7(b).
(d)At
any time during the duration of a compact, Federal programs may be added or
removed from the compact in furtherance of the economic development
strategy.
(e)
(1)If a compact is approaching expiration or has expired,
the eligible entity that is a party to the compact and the United States may
extend the compact for a period of not to exceed 10 years.
(2)An eligible entity and the United States may renegotiate
1 or more subsequent compacts in accordance with this Act.
(f)Suspension and
termination of assistance
(1)The Secretary may suspend or terminate assistance, in
whole or in part, for an eligible entity that has entered into a compact with
the United States if the Secretary determines that—
(A)the eligible
entity has failed to meet the responsibilities of the eligible entity under the
compact; or
(B)the eligible
entity has engaged in a pattern of actions that is inconsistent with the
purposes of this Act.
(2)The
Secretary may reinstate assistance for an eligible entity only if the Secretary
determines that the eligible entity has demonstrated a commitment to correcting
each condition for which assistance was suspended or terminated under paragraph
(1).
7.Program
assessments and reports
(a)Reports of
eligible entitiesEach eligible entity shall prepare and submit
to the Secretary an annual written report describing the assistance received by
the eligible entity under this Act during the preceding fiscal year and an
analysis of the results of the demonstration project as of the date of the
report.
(b)A report required under subsection (a) shall
include—
(1)a description of
the amount of obligations and expenditures for assistance provided during the
preceding fiscal year;
(2)a description of
the programs and activities conducted by the eligible entity in furtherance of
the economic development strategy of the eligible entity and the purposes of
this Act;
(3)an assessment of
the effectiveness of the assistance provided and progress made by the eligible
entity toward achieving the economic development strategy of the eligible
entity and the purposes of this Act;
(4)an assessment of
whether the requirements described in section 6(c) are being met;
(5)an analysis of
the potential for the demonstration project to provide lessons for other
programs consistent with the purposes of this Act; and
(6)such other
information as the eligible entity considers to be relevant, taking into
consideration the purposes of this Act.
(c)The Secretary shall submit the reports required under
subsection (a), with such other information as the Secretary considers to be
relevant, on an annual basis to—
(1)the Committees on
Energy and Commerce and Natural Resources of the House of Representatives;
and
(2)the Committees on
Indian Affairs, Commerce, Science, and Transportation, and Energy and Natural
Resources of the Senate.
8.Relationship to
Federal trust responsibilityNothing in this Act diminishes the Federal
trust responsibility to Indian tribes, individual Indians, or relating to trust
allotments.
9.Authorization of
appropriations
(a)Authorization
of appropriationsThere are authorized to be appropriated such
sums as necessary to carry out this Act.
(b)Administrative
and program oversight expensesOf the funds made available to
carry out this Act, not more than 5 percent may be used by the Secretary
for—
(1)the
administrative expenses of carrying out this Act; and
(2)oversight of
programs under this Act.