[Congressional Record Volume 141, Number 128 (Thursday, August 3, 1995)]
[Senate]
[Pages S11342-S11347]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]


             ALASKA NATIVE CLAIMS SETTLEMENT ACT AMENDMENT

  Mr. WARNER. Mr. President, I ask unanimous consent that the Senate 
proceed to the immediate consideration of calendar No. 154, H.R. 402.
  The PRESIDING OFFICER. The clerk will report.
  The assistant legislative clerk read as follows:

       A bill (H.R. 402) to amend the Alaska Native Claims 
     Settlement Act, and for other purposes, which had been 
     reported from the Committee on Energy and Natural Resources, 
     with an amendment to strike all after the enacting clause and 
     inserting in lieu thereof the following:
                TITLE I--ALASKA NATIVE CLAIMS SETTLEMENT

     SECTION 101. RATIFICATION OF CERTAIN CASWELL AND MONTANA 
                   CREEK NATIVE ASSOCIATIONS CONVEYANCES.

       The conveyance of approximately 11,520 acres to Montana 
     Creek Native Association, Inc., and the conveyance of 
     approximately 11,520 acres to Caswell Native Association, 
     Inc., by Cook Inlet Region, Inc. in fulfillment of the 
     agreement of February 3, 1976, and subsequent letter 
     agreement of March 26, 1982, among the 3 parties are hereby 
     adopted and ratified as a matter of Federal law. The 
     conveyances shall be deemed to be conveyances pursuant to 
     section 14(h)(2) of the Alaska Native Claims Settlement Act 
     (43 U.S.C. 1613(h)(2)). The group corporations for Montana 
     Creek and Caswell are hereby declared to have received their 
     full entitlement and shall not be entitled to receive any 
     additional lands under the Alaska Native Claims Settlement 
     Act. The ratification of these conveyances shall not have any 
     effect on section 14(h) of the Alaska Native Claims 
     Settlement Act (43 U.S.C. 1613(h)) or upon the duties and 
     obligations of the United States to any Alaska Native 
     Corporation. This ratification shall not be for any claim to 
     land or money by the Caswell or Montana Creek group 
     corporations or any other Alaska Native Corporation against 
     the State of Alaska, the United States, or Cook Inlet Region, 
     Incorporated.

     SEC. 102. MINING CLAIMS ON LANDS CONVEYED TO ALASKA REGIONAL 
                   CORPORATIONS.

       Section 22(c) of the Alaska Native Claims Settlement Act 
     (43 U.S.C. 1621(c)) is amended by adding at the end the 
     following:
       ``(3) This section shall apply to lands conveyed by interim 
     conveyance or patent to a regional corporation pursuant to 
     this Act which are made subject to a mining claim or claims 
     located under the general mining laws, including lands 
     conveyed prior to enactment of this paragraph. Effective upon 
     the date of enactment of this paragraph, the Secretary, 
     acting through the Bureau of Land Management and in a manner 
     consistent with section 14(g), shall transfer to the regional 
     corporation administration of all mining claims determined to 
     be entirely within lands conveyed to that corporation. Any 
     person holding such mining claim or claims shall meet such 
     requirements of the general mining laws and section 314 of 
     the Federal Land Management and Policy Act of 1976 (43 U.S.C. 
     1744), except that any filings that would have been made with 
     the Bureau of Land Management if the lands were within 
     Federal ownership shall be timely made with the appropriate 
     regional corporation. The validity of any such mining claim 
     or claims may be contested by the regional corporation, in 
     place of the United States. All contest proceedings and 
     appeals by the mining claimants of adverse decision made by 
     the regional corporation shall be brought in Federal District 
     Court for the District of Alaska. Neither the United States 
     nor any Federal agency or official shall be named or joined 
     as a party in such proceedings or appeals. All revenues from 
     such mining claims received after passage of this paragraph 
     shall be remitted to the regional corporation subject to 
     distribution pursuant to section 7(i) of this Act, except 
     that in the event that the mining claim or claims are not 
     totally within the lands conveyed to the regional 
     corporation, the regional corporation shall be entitled only 
     to that proportion of revenues, other than administrative 
     fees, reasonably allocated to the portion of the mining claim 
     so conveyed.''.

     SEC. 103. SETTLEMENT OF CLAIMS ARISING FROM HAZARDOUS 
                   SUBSTANCE CONTAMINATION OF TRANSFERRED LANDS.

       The Alaska Native Claims Settlement Act (43 U.S.C. 1601 et 
     seq.) is amended by adding at the end the following:


        ``claims arising from contamination of transferred lands

       ``Sec. 40. (a) As used in this section the term 
     `contaminant' means hazardous substance harmful to public 
     health or the environment, including friable asbestos.
       ``(b) Within 18 months of enactment of this section, and 
     after consultation with the Secretary of Agriculture, State 
     of Alaska, and appropriate Alaska Native corporations and 
     organizations, the Secretary shall submit to the Committee on 
     Resources of the House of Representatives and the Committee 
     on Energy and Natural Resources of the Senate, a report 
     addressing issues presented by the presence of contaminants 
     on lands conveyed or prioritized for conveyance to such 
     corporations pursuant to this Act. Such report shall consist 
     of--
       ``(1) existing information concerning the nature and types 
     of contaminants present on such lands prior to conveyance to 
     Alaska Native corporations;
       ``(2) existing information identifying to the extent 
     practicable the existence and availability of potentially 
     responsible parties for the removal or remediation of the 
     effects of such contaminants;
       ``(3) identification of existing remedies;
       ``(4) recommendations for any additional legislation that 
     the Secretary concludes is necessary to remedy the problem of 
     contaminants on the lands; and
       ``(5) in addition to the identification of contaminants, 
     identification of structures known to have asbestos present 
     and recommendations to inform Native landowners on the 
     containment of asbestos.''.

     SEC. 104. AUTHORIZATION OF APPROPRIATIONS FOR THE PURPOSES OF 
                   IMPLEMENTING REQUIRED RECONVEYANCES.

       Section 14(c) of the Alaska Native Claims Settlement Act 
     (43 U.S.C. 1613(c)) is amended by adding at the end the 
     following:
       ``There is authorized to be appropriated such sums as may 
     be necessary for the purpose of providing technical 
     assistance to Village Corporations established pursuant to 
     this Act in order that they may fulfill the reconveyance 
     requirements of section 14(c) of this Act. The Secretary may 
     make funds available as grants to ANCSA or nonprofit 
     corporations that maintain in-house land planning and 
     management capabilities.''.

     SEC. 105. NATIVE ALLOTMENTS.

       Section 1431(o) of the Alaska National Interest Lands 
     Conservation Act (94 Stat. 2542) is amended by adding at the 
     end the following:
       ``(5) Following the exercise by Arctic Slope Regional 
     Corporation of its option under paragraph (1) to acquire the 
     subsurface estate beneath lands within the National Petroleum 
     Reserve--Alaska selected by Kuukpik Corporation, where such 
     subsurface estate entirely surrounds lands subject to a 
     Native allotment application approved under 905 of this Act, 
     and the oil and gas in such lands have been reserved to the 
     United States, Arctic Slope Regional Corporation, at its 
     further option and subject to the concurrence of Kuukpik 
     Corporation, shall be entitled to receive a conveyance of the 
     reserved oil and gas, including all rights and privileges 
     therein reserved to the United States, in such lands. Upon 
     the receipt of a conveyance of such oil and gas interests, 
     the entitlement of Arctic Slope Regional Corporation to in-
     lieu subsurface lands under section 12(a)(1) of the Alaska 
     Native Claims Settlement Act (43 U.S.C. 1611(a)(1)) shall be 
     reduced by the amount of acreage determined by the Secretary 
     to be conveyed to Arctic Slope Regional Corporation pursuant 
     to this paragraph.''.

     SEC. 106. REPORT CONCERNING OPEN SEASON FOR CERTAIN NATIVE 
                   ALASKA VETERANS FOR ALLOTMENTS.

       (a) In General.--No later than 9 months after the date of 
     enactment of this Act, the Secretary of the Interior, in 
     consultation with the Secretary of Agriculture, the State of 
     Alaska and 

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     appropriate Native corporations and organizations, shall submit to the 
     Committee on Resources of the House of Representatives and 
     the Committee on Energy and Natural Resources of the Senate a 
     report which shall include, but not be limited to, the 
     following:
       (1) The number of Vietnam era veterans, as defined in 
     section 101 of title 38, United States Code, who were 
     eligible for but did not apply for an allotment of not to 
     exceed 160 acres under the Act of May 17, 1906 (chapter 2469, 
     34 Stat. 197), as the Act was in effect before December 18, 
     1971.
       (2) An assessment of the potential impacts of additional 
     allotments on conservation system units as that term is 
     defined in section 102(4) of the Alaska National Interest 
     Lands Conservation Act (94 Stat. 2375).
       (3) Recommendations for any additional legislation that the 
     Secretary concludes is necessary.
       (b) Requirement.--The Secretary of Veterans Affairs shall 
     release to the Secretary of the Interior information relevant 
     to the report required under subsection (a).
     SEC. 107. TRANSFER OF WRANGELL INSTITUTE.

       (a) Property Transfer.--In order to effect a recision of 
     the ANCSA settlement conveyance to Cook Inlet Region, 
     Incorporated of the approximately 134.49 acres and structures 
     located thereon (``property'') known as the Wrangell 
     Institute in Wrangell, Alaska, upon certification to the 
     Secretary by Cook Inlet Region, Incorporated, that the 
     Wrangell Institute property has been offered for transfer to 
     the City of Wrangell, property bidding credits in an amount 
     of $475,000, together with adjustments from January 1, 1976 
     made pursuant to the methodology used to establish the 
     Remaining Obligation Entitlement in the Memorandum of 
     Understanding Between the United States Department of the 
     Interior and Cook Inlet Region, Incorporated dated April 11, 
     1986, shall be restored to the Cook Inlet Region, 
     Incorporated, property account in the Treasury established 
     under section 12(b) of the Act of January 2, 1976 (Public Law 
     94-204, 43 U.S.C. 1611 note), as amended, referred to in such 
     section as the ``Cook Inlet Region, Incorporated, property 
     account''. Acceptance by the City of Wrangell, Alaska of the 
     property shall constitute a waiver by the City of Wrangell of 
     any claims for the costs of remediation related to asbestos, 
     whether in the nature of participation or reimbursement, 
     against the United States or Cook Inlet Region, Incorporated. 
     The acceptance of the property bidding credits by Cook Inlet 
     Region, Incorporated, Alaska of the property shall constitute 
     a waiver by Cook Inlet Region, Incorporated of any claims for 
     the costs of remediation related to asbestos, whether in the 
     nature of participation or reimbursement, against the United 
     States. In no event shall the United States be required to 
     take title to the property. Such restored property bidding 
     credits may be used in the same manner as any other portion 
     of the account.
       (b) Hold Harmless.--Upon acceptance of the property bidding 
     credits by Cook Inlet Region, Inc., the United States shall 
     defend and hold harmless Cook Inlet Region, Incorporated, and 
     its subsidiaries in any and all claims arising from asbestos 
     or any contamination existing at the Wrangell Institute 
     property at the time of transfer of ownership of the property 
     from the United States to Cook Inlet Region, Incorporated.

     SEC. 108. SHISHMAREF AIRPORT AMENDMENT.

       The Shishmaref Airport, conveyed to the State of Alaska on 
     January 5, 1967, in Patent No. 1240529, is subject to 
     reversion to the United States, pursuant to the terms of that 
     patent for nonuse as an airport. The Administrator of the 
     Federal Aviation Administration is hereby directed to 
     exercise said reverter in Patent No. 1240529 in favor of the 
     United States within twelve months of the date of enactment 
     of this section. Upon revesting of title, notwithstanding any 
     other provision of law, the United States shall immediately 
     thereafter transfer all right, title, and interest of the 
     United States in the subject lands to the Shishmaref Native 
     Corporation. Nothing in this section shall relieve the State, 
     the United States, or any other potentially responsible party 
     of liability, if any, under existing law for the cleanup of 
     hazardous or solid wastes on the property, nor shall the 
     United States or Shishmaref Native Corporation become liable 
     for the cleanup of the property solely by virtue of acquiring 
     title from the State of Alaska or from the United States.

     SEC. 109. CONFIRMATION OF WOODY ISLAND AS ELIGIBLE NATIVE 
                   VILLAGE.

       The Native village of Woody Island, located on Woody 
     Island, Alaska, in the Koniag Region, is hereby confirmed as 
     an eligible Alaska Native Village, pursuant to Section 
     11(b)(3) of the Alaska Native Claims Settlement Act 
     (``ANCSA''). It is further confirmed that Leisnoi, Inc., is 
     the Village Corporation, as that term is defined in Section 
     3(j) of ANCSA, for the village of Woody Island.
                     TITLE II--HAWAIIAN HOME LANDS

     SEC. 201. SHORT TITLE

       This title may cited as the ``Hawaiian Home Lands Recovery 
     Act''.

     SEC. 202. DEFINITIONS.

       As used in this title:
       (1) Agency.--The term ``agency'' includes--
       (A) any instrumentality of the United States;
       (B) any element of an agency; and
       (C) any wholly owned or mixed-owned corporation of the 
     United States Government.
       (2) Beneficiary.--The term ``beneficiary'' has the same 
     meaning as is given the term ``native Hawaiian'' under 
     section 201(7) of the Hawaiian Homes Commission Act.
       (3) Chairman.--The term ``Chairman'' means the Chairman of 
     the Hawaiian Homes Commission of the State of Hawaii.
       (4) Commission.--The term ``Commission'' means the Hawaiian 
     Homes Commission established by section 202 of the Hawaiian 
     Homes Commission Act.
       (5) Hawaiian homes commission act.--The term ``Hawaiian 
     Homes Commission Act'' means the Hawaiian Homes Commission 
     Act, 1920 (42 Stat. 108 et. seq., chapter 42).
       (6) Hawaii state admission act.--The term ``Hawaii State 
     Admission Act'' means the Act entitled ``An Act to provide 
     for the admission of the State of Hawaii into the Union'', 
     approved March 18, 1959 (73 Stat. 4, chapter 339; 48 U.S.C. 
     note prec. 491).
       (7) Lost use.--The term ``lost use'' means the value of the 
     use of the land during the period when beneficiaries or the 
     Hawaiian Homes Commission have been unable to use lands as 
     authorized by the Hawaiian Homes Commission Act because of 
     the use of such lands by the Federal Government after August 
     21, 1959.
       (8) Secretary.--The term ``Secretary'' means the Secretary 
     of the Interior.

     SEC. 203. SETTLEMENT OF FEDERAL CLAIMS.

       (a) Determination.--
       (1) The Secretary shall determine the value of the 
     following:
       (A) Lands under the control of the Federal Government 
     that--
       (i) were initially designated as available lands under 
     section 203 of the Hawaiian Homes Commission Act (as in 
     effect on the date of enactment of such Act); and
       (ii) were nevertheless transferred to or otherwise acquired 
     by the Federal Government.
       (B) The lost use of lands described in subparagraph (A).
       (2)(A) Except as provided in subparagraph (B), the 
     determinations of value made under this subsection shall be 
     made not later than 1 year after the date of enactment of 
     this Act. In carrying out this subsection, the Secretary 
     shall use a method of determining value that--
       (i) is acceptable to the Chairman; and
       (ii) is in the best interest of the beneficiaries.
       (B) The Secretary and the Chairman may mutually agree to 
     extend the deadline for making determinations under this 
     subparagraph beyond the date specified in subparagraph (A).
       (3) The Secretary and the Chairman may mutually agree, with 
     respect to the determinations of value described in 
     subparagraphs (A) and (B) of paragraph (1), to provide--
       (A) for making any portion of the determinations of value 
     pursuant to subparagraphs (A) and (B) of paragraph (1); and
       (B) for making the remainder of the determinations with 
     respect to which the Secretary and the Chairman do not 
     exercise the option described in subparagraph (A), pursuant 
     to an appraisal conducted under paragraph (4).
       (4)(A) Except as provided in subparagraph (C), if the 
     Secretary and the Chairman do not agree on the determinations 
     of value made by the Secretary under subparagraphs (A) and 
     (B) of paragraph (1), or, pursuant to paragraph (3), mutually 
     agree to determine the value of certain lands pursuant to 
     this
      subparagraph, such values shall be determined by an 
     appraisal. An appraisal conducted under this subparagraph 
     shall be conducted in accordance with appraisal standards 
     that are mutually agreeable to the Secretary and the 
     Chairman.
       (B) If an appraisal is conducted pursuant to this 
     subparagraph, during the appraisal process--
       (i) the Chairman shall have the opportunity to present 
     evidence of value to the Secretary;
       (ii) the Secretary shall provide the Chairman a preliminary 
     copy of the appraisal;
       (iii) the Chairman shall have a reasonable and sufficient 
     opportunity to comment on the preliminary copy of the 
     appraisal; and
       (iv) the Secretary shall give consideration to the comments 
     and evidence of value submitted by the Chairman under this 
     subparagraph.
       (C) The Chairman shall have the right to dispute the 
     determinations of values made by an appraisal conducted under 
     this subparagraph. If the Chairman disputes the appraisal, 
     the Secretary and the Chairman may mutually agree to employ a 
     process of bargaining, mediation, or other means of dispute 
     resolution to make the determinations of values described in 
     subparagraphs (A) and (B) of paragraph (1).
       (b) Authorization.--
       (1) Exchange.--Subject to paragraphs (2) and (5), the 
     Secretary may convey Federal lands described in paragraph (5) 
     to the Department of Hawaiian Home Lands in exchange for the 
     continued retention by the Federal Government of lands 
     described in subsection (a)(1)(A).
       (2) Value of lands.--(A) The value of any lands conveyed to 
     the Department of Hawaiian Home Lands by the Federal 
     Government in accordance with an exchange made under 
     paragraph (1) may not be less than the value of the lands 
     retained by the Federal Government pursuant to such exchange.
       (B) For the purposes of this subsection, the value of any 
     lands exchanged pursuant to paragraph (1) shall be determined 
     as of the date the exchange is carried out, or any other date 
     determined by the Secretary, with the concurrence of the 
     Chairman.
       (3) Lost use.--Subject to paragraphs (4) and (5), the 
     Secretary may convey Federal lands described in paragraph (5) 
     to the Department of Hawaiian Home Lands as compensation for 
     the lost use of lands determined under subsection (a)(1)(B).
       (4) Value of lost use.--(A) the value of any lands conveyed 
     to the Department of Hawaiian Home Lands by the Federal 
     Government as compensation under paragraph (3) may not be 
     less than the value of the lost use of lands determined under 
     subsection (a)(1)(B).
       (B) For the purposes of this subparagraph, the value of any 
     lands conveyed pursuant to paragraph (3) shall be determined 
     as of the date that the conveyance occurs, or any other date 
     determined by the Secretary, with the concurrence of the 
     Chairman.

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       (5) Federal lands for exchange.--(A) Subject to 
     subparagraphs (B) and (C), Federal lands located in Hawaii 
     that are under the control of an agency (other than lands 
     within the National Park System or the National Wildlife 
     Refuge System) may be conveyed to the Department of Hawaiian 
     Home Lands under paragraphs (1) and (3). To assist the 
     Secretary in carrying out this Act, the head of an agency may 
     transfer to the Department of the Interior, without 
     reimbursement, jurisdiction and control over any lands and 
     any structures that the Secretary determines to be suitable 
     for conveyance to the Department of Hawaiian Home Lands 
     pursuant to an exchange conducted under this section.
       (B) No Federal lands that the Federal Government is 
     required to convey to the State of Hawaii under section 5 of 
     the Hawaii State Admission Act may be conveyed under 
     paragraph (1) or (3).
       (C) No Federal lands that generate income (or would be 
     expected to generate income) for the Federal Government may 
     be conveyed pursuant to an exchange made under this paragraph 
     to the Department of Hawaiian Home Lands.
       (c) Available Lands.--
       (1) In general.--Subject to paragraphs (2) and (3), the 
     Secretary shall require that lands conveyed to the Department 
     of Hawaiian Home Lands under this Act shall have the status 
     of available lands under the Hawaiian Home Commission Act.
       (2) Subsequent exchange of lands.--Notwithstanding any 
     other provision of law, lands conveyed to the Department of 
     Hawaiian Home Lands under this paragraph may subsequently be 
     exchanged pursuant to section 204(3) of the Hawaiian Home 
     Commission Act.
       (3) Sale of certain lands.--Notwithstanding any other 
     provision of law, the Chairman may, at the time that lands 
     are conveyed to the Department of Hawaiian Home Lands as 
     compensation for lost use under this Act, designate lands to 
     be sold. The Chairman is authorized to sell such land under 
     terms and conditions that are in the best interest of the 
     beneficiaries. The proceeds of such a sale may only be used 
     for the purposes described in section 207(a) of the Hawaiian 
     Homes Commission Act.
       (d) Consultation.--In carrying out their respective 
     responsibilities under this section, the Secretary and the 
     Chairman shall--
       (1) consult with the beneficiaries and organizations 
     representing the beneficiaries; and
       (2) report to such organizations on a regular basis 
     concerning the progress made to meet the requirements of this 
     section.
       (e) Hold Harmless.--Notwithstanding any other provision of 
     law, the United States shall defend and hold harmless the 
     Department of Hawaiian Home Lands, the employees of the 
     Department, and the beneficiaries with respect to any claim 
     arising from the ownership of any land or structure that is 
     conveyed to the Department pursuant to an exchange made under 
     this section prior to the conveyance to the Department of 
     such land or structure.
       (f) Screening.--
       (1) In general.--Notwithstanding any other provision of 
     law, the Secretary of Defense and the Administrator of 
     General Services shall, at the same time as notice is 
     provided to Federal agencies that excess real property is 
     being screened pursuant to applicable Federal laws (including 
     regulations) for possible transfer to such agencies, notify 
     the Chairman of any such screening of real property that is 
     located within the State of Hawaii.
       (2) Response to notification.--Notwithstanding any other 
     provision of law, not later than 90 days after receiving a 
     notice under paragraph (1), the Chairman may select for 
     appraisal real property, or at the election of the Chairman, 
     portions of real property, that is the subject of a 
     screening.
       (3) Selection.--Notwithstanding any other provision of law, 
     with respect to any real property located in the State of 
     Hawaii that, as of the date of enactment of this Act, is 
     being screened pursuant to applicable Federal laws for 
     possible transfer (as described in paragraph (1)) or has been 
     screened for such purpose, but has not been transferred or 
     declared to be surplus real property, the Chairman may select 
     all, or any portion of, such real property to be appraised 
     pursuant to paragraph (4).
       (4) Appraisal.--Notwithstanding any other provision of law, 
     the Secretary of Defense or the Administrator of General 
     Services shall appriase the real property or portions of real 
     property selected by the Chairman using the Uniform Standards 
     for Federal Land Acquisition developed by the Interagency 
     Land Acquisition Conference, or such other standard as the 
     Chairman agrees to.
       (5) Request for conveyance.--Notwithstanding any other 
     provision of law, not later than 30 days after the date of 
     completion of such appraisal, the Chairman may request the 
     conveyance to the Department of Hawaiian Home Lands of--
       (A) the appraised property; or
       (B) a portion of the appraised property, to the Department 
     of Hawaiian Home Lands.
       (6) Conveyance.--Notwithstanding any other provision of 
     law, upon receipt of a request from the Chairman, the 
     Secretary of Defense or the Administrator of the General 
     Services Administration shall convey, without reimbursement, 
     the real property that is the subject of the request to the 
     Department of Hawaiian Home Lands as compensation for lands 
     identified under subsection (a)(1)(A) or lost use identified 
     under subsection (a)(1)(B).
       (7) Real property not subject to recoupment.--
     Notwithstanding any other provision of law, any real property 
     conveyed pursuant to paragraph (6) shall not be subject to 
     recoupment based upon the sale or lease of the land by the 
     Chairman.
       (8) Valuation.--Notwithstanding any other provision of law, 
     the Secretary shall reduce the value identified under 
     subparagraph (A) or (B) of subsection (a)(1), as determined 
     pursuant to such subsection, by an amount equal to the 
     appraised value of any excess lands conveyed pursuant to 
     paragraph (6).
       (9) Limitation.--No Federal lands that generate income (or 
     would be expected to generate income) for the Federal 
     Government may be conveyed pursuant to this subsection to the 
     Department of Hawaiian Home Lands.
     SEC. 204. PROCEDURE FOR APPROVAL OF AMENDMENTS TO HAWAIIAN 
                   HOMES COMMISSION ACT.

       (a) Notice to the Secretary.--Not later than 120 days after 
     a proposed amendment to the Hawaiian Homes Commission Act is 
     approved in the manner provided in section 4 of the Hawaii 
     State Admission Act, the Chairman shall submit to the 
     Secretary--
       (1) a copy of the proposed amendment;
       (2) the nature of the change proposed to be made by the 
     amendment; and
       (3) an opinion regarding whether the proposed amendment 
     requires the approval of Congress under section 4 of the 
     Hawaii State Admission Act.
       (b) Determination by Secretary.--Not later than 60 days 
     after receiving the materials required to be submitted by the 
     Chairman pursuant to subsection (a), the Secretary shall 
     determine whether the proposed amendment requires the 
     approval of Congress under section 4 of the Hawaii State 
     Admission Act, and shall notify the Chairman and Congress of 
     the determination of the Secretary.
       (c) Congressional Approval Required.--If, pursuant to 
     subsection (b), the Secretary determines that the proposed 
     amendment requires the approval of Congress, the Secretary 
     shall submit to the Committee on Energy and Natural Resources 
     of the Senate and the Committee on Resources of the House of 
     Representatives--
       (1) a draft joint resolution approving the amendment;
       (2) a description of the change made by the proposed 
     amendment and an explanation of how the amendment advances 
     the interests of the beneficiaries;
       (3) a comparison of the existing law (as of the date of 
     submission of the proposed amendment) that is the subject of 
     the amendment with the proposed amendment;
       (4) a recommendation concerning the advisability of 
     approving the proposed amendment; and
       (5) any documentation concerning the amendments received 
     from the Chairman.

     SEC. 205. LAND EXCHANGES.

       (a) Notice to the Secretary.--If the Chairman recommends 
     for approval an exchange of Hawaiian Home Lands, the Chairman 
     shall submit a report to the Secretary on the proposed 
     exchange. The report shall contain--
       (1) a description of the acreage and fair market value of 
     the lands involved in the exchange;
       (2) surveys and appraisals prepared by the Department of 
     Hawaiian Home Lands, if any; and
       (3) an identification of the benefits to the parties of the 
     proposed exchange.
       (b) Approval or Disapproval.--
       (1) In general.--Not later than 120 days after receiving 
     the information required to be submitted by the Chairman 
     pursuant to subsection (a), the Secretary shall approve or 
     disapprove the proposed exchange.
       (2) Notification.--The Secretary shall notify the Chairman, 
     the Committee on Energy and Natural Resources of the Senate, 
     and the Committee on Resources of the House of 
     Representatives of the reasons for the approval or 
     disapproval of the proposed exchange.
       (c) Exchanges Initiated by Secretary.--
       (1) In general.--The Secretary may recommend to the 
     Chairman an exchange of Hawaiian Home Lands for Federal lands 
     described in section 203(b)(5), other than lands described in 
     subparagraphs (B) and (C) of such section. If the Secretary 
     initiates a recommendation for such an exchange, the 
     Secretary shall submit a report to the Chairman on the 
     proposed exchange that meets the requirements of a report 
     described in subsection (a).
       (2) Approval by chairman.--Not later than 120 days after 
     receiving a recommendation for an exchange from the Secretary 
     under paragraph (1), the Chairman shall provide written 
     notification to the Secretary of the approval or disapproval 
     of a proposed exchange. If the Chairman approves the proposed 
     exchange, upon receipt of the written notification, the 
     Secretary shall notify the Committee on Energy and Natural 
     Resources of the Senate, and the Committee on Resources of 
     the House of Representatives of the approval of the Chairman 
     of the proposed exchange.
       (3) Exchange.--Upon providing notification pursuant to 
     paragraph (2) of a proposed exchange that has been approved 
     by the Chairman pursuant to this section, the Secretary may 
     carry out the exchange.
       (d) Selection and Exchange.--
       (1) In general.--Notwithstanding any other provision of 
     law, the Secretary may--
       (A) select real property that is the subject of screening 
     activities conducted by the Secretary of Defense or the 
     Administrator of General Services pursuant to applicable 
     Federal laws (including regulations) for possible transfer to 
     Federal agencies; and
       (B) make recommendations to the Chairman concerning making 
     an exchange under subsection (c) that includes such real 
     property.
       (2) Transfer.--Notwithstanding any other provision of law, 
     if the Chairman approves an exchange proposed by the 
     Secretary under paragraph (1)--
       (A) the Secretary of Defense or the Administrator of 
     General Services shall transfer the real property described 
     in paragraph (1)(A) that is the subject of the exchange to 
     the Secretary without reimbursement; and

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       (B) the Secretary shall carry out the exchange.
       (3) Limitation.--No Federal lands that generate income (or 
     would be expected to generate income) for the Federal 
     Government may be conveyed pursuant to this subsection to the 
     Department of Hawaiian Home Lands.
       (e) Surveys and Appraisals.--
       (1) Requirement.--The Secretary shall conduct a survey of 
     all Hawaiian Home Lands based on
      the report entitled ``Survey Needs for the Hawaiian Home 
     Lands'', issued by the Bureau of Land Management of the 
     Department of the Interior, and dated July 1991.
       (2) Other surveys.--The Secretary is authorized to conduct 
     such other surveys and appraisals as may be necessary to make 
     an informed decision regarding approval or disapproval of a 
     proposed exchange.

     SEC. 206. ADMINISTRATION OF ACTS BY UNITED STATES.

       (a) Designation.--
       (1) In general.--Not later than 120 days after the date of 
     enactment of this Act, the Secretary shall designate an 
     individual from within the Department of the Interior to 
     administer the responsibilities of the United States under 
     this title and the Hawaiian Homes Commission Act.
       (2) Default.--If the Secretary fails to make an appointment 
     by the date specified in paragraph (1), or if the position is 
     vacant at any time thereafter, the Assistant Secretary for 
     Policy, Budget, and Administration of the Department of the 
     Interior shall exercise the responsibilities for the 
     Department in accordance with subsection (b).
       (b) Responsibilities.--The individual designated pursuant 
     to subsection (a) shall, in administering the laws referred 
     to in such subsection--
       (1) advance the interests of the beneficiaries; and
       (2) assist the beneficiaries and the Department of Hawaiian 
     Home Lands in obtaining assistance from programs of the 
     Department of the Interior and other Federal agencies that 
     will promote homesteading opportunities, economic self-
     sufficiency, and social well-being of the beneficiaries.

     SEC. 207. ADJUSTMENT.

       The Act of July 1, 1932 (47 Stat. 564, chapter 369; 25 
     U.S.C. 386a) is amended by striking the period at the end and 
     adding the following: ``: Provided further, That the 
     Secretary shall adjust or eliminate charges, defer collection 
     of construction costs, and make no assessment on behalf of 
     such charges for beneficiaries that hold leases on Hawaiian 
     home lands, to the same extent as is permitted for individual 
     Indians or tribes of Indians under this section.''.

     SEC. 208. REPORT.

       (a) In General.--Not later than 180 days after the date of 
     enactment of this Act, the Chairman shall report to the 
     Secretary concerning any claims that--
       (1) involve the transfer of lands designated as available 
     lands under section 203 of the Hawaiian Homes Commission Act 
     (as in effect on the date of enactment of such Act); and
       (2) are not otherwise covered under this title.
       (b) Review.--Not later than 180 days after receiving the 
     report submitted under subsection (a), the Secretary shall 
     make a determination with respect to each claim referred to 
     in subsection (a), whether, on the basis of legal and 
     equitable considerations, compensation should be granted to 
     the Department of Hawaiian Home Lands.
       (c) Compensation.--If the Secretary makes a determination 
     under subsection (b) that compensation should be granted to 
     the Department of Hawaiian Home Lands, the Secretary shall 
     determine the value of the lands and lost use in accordance 
     with the process established under section 203(a), and 
     increase the determination of value made under subparagraphs 
     (A) and (B) of section 203(a)(1) by the value determined 
     under this subsection.

     SEC. 209. AUTHORIZATION.

       There are authorized to be appropriated such sums as may be 
     necessary for compensation to the Department of Hawaiian Home 
     Lands for the value of the lost use of lands determined under 
     section 203. Compensation received by the Department of 
     Hawaiian Home Lands from funds made available pursuant to 
     this section may only be used for the purposes described in 
     section 207(a) of the Hawaiian Homes Commission Act. To the 
     extent that amounts are made available by appropriations 
     pursuant to this section for compensation paid to the 
     Department of Hawaiian Home Lands for lost use, the Secretary 
     shall reduce the determination of value established under 
     section 203(a)(1)(B) by such amount.
  The PRESIDING OFFICER. Is there objection to the immediate 
consideration of the bill?
  There being no objection, the Senate proceeded to consider the bill.


                           Amendment No. 2110

(Purpose: To amend section 7(i) of the Alaska Native Claims Settlement 
      Act to exclude net operating losses from the definition of 
                             ``revenues'')

  Mr. WARNER. Mr. President, I send an amendment to the desk on behalf 
of Senator Stevens and Senator Akaka.
  The PRESIDING OFFICER. The clerk will report.

       The Senator from Virginia [Mr. Warner], for Mr. Stevens, 
     for himself and Mr. Akaka, proposes an amendment numbered 
     2110.

  Mr. WARNER. Mr. President, I ask unanimous consent that the reading 
of the amendment be dispensed with.
  The PRESIDING OFFICER. Without objection, it is so ordered.
  The amendment is as follows:

       At the end of Title I of H.R. 402, add the following new 
     section 110:

     SEC. 110. DEFINITION OF REVENUES.

       (a) Section 7(i) of the Alaska Native Claims Settlement 
     Act, Public Law 92-203 (43 U.S.C. 1606 (i)), is amended--
       (1) by inserting ``(1)'' after ``(i)''; and
       (2) by adding at the end the following new paragraph:
       ``(2) For purposes of this subsection, the term 
     ``revenues'' does not include any benefit received or 
     realized for the use of losses incurred or credits earned by 
     a Regional Corporation.''.
       (b) This amendment shall be effective as of the date of 
     enactment of the Alaska Native Claims Settlement Act, Public 
     Law 92-203 (43 U.S.C. 1601, et seq.).

  Mr. STEVENS. Mr. President, the amendment that my colleague from 
Hawaii, Senator Akaka, and I are offering today makes clear that net 
operating losses under the 1984 and 1986 Tax Reform Acts are not 
subject to sharing under section 7(i) of the Alaska Native Claims 
Settlement Act.
  Section 60(b)(5) of the Tax Reform Act of 1984, as amended by section 
1804(e)(4) of the Tax Reform Act of 1986, allowed Alaska Natives--both 
regional and village corporations--to sell losses generated by the 
Federal Government's failure to transfer lands to Native people 
promised to them 15 years earlier. Other multi-billion dollar 
corporations had been permitted to sell their tax losses prior to 1984, 
and my amendment to the 1984 tax bill simply extended the program to 
Alaska Native corporations who had not been able to participate.
  Section 7(i) of ANCSA requires the 12 Alaska Native regional 
corporations to distribute 70 percent of the natural resource revenues 
derived from their lands, after deducting expenses, to the other 11 
regions. The provision was designed as a mechanism to share the 
revenues of regional Native corporations in Alaska naturally blessed 
with timber, minerals, and oil and gas--after the deduction of 
expenses--with regions which lacked such resources.
  Although revenues after expenses from disposition of natural 
resources must be redistributed, the tax consequences of these
 natural resource transactions, such as credits or deductions for 
depletion and losses, remain with the producing region. For more than 
20 years, this has been the position of the Internal Revenue Service on 
which the Native corporations have relied.

  When I offered amendments in 1984 and in 1986 to extend the NOL 
provision to Alaska Native corporations, it was not my intention, nor 
the intention of Congress, that the revenue generated by the sale of 
NOL's be subject to sharing under section 7(i). On average, for every 
$100 in net operating losses, Native corporations received only $30 in 
NOL recovery and in no case more than $34. A recovery of $30 by a 
corporation because it has sold the right to offset its losses against 
income is not subject to sharing. Revenue recovered from the sale of 
natural resources NOL's is not revenue from natural resource 
production.
  Congressional intent has been well-understood by most Alaska Native 
corporations. The provisions in the 1984 and 1986 Tax Reform Acts 
enabled eleven of the twelve regional corporations subject to ANCSA 
section 7(i) sharing requirements to partially recoup their losses from 
natural resource development and kept several Native corporations out 
of bankruptcy. It also benefited virtually every Native Alaskan. 
Without exception, the NOL proceeds have been retained by the receiving 
corporation, as was intended. In fact 10 of the regions signed an 
agreement to clarify their understanding that NOL proceeds were not 
subject to sharing under section 7(i). My amendment simply confirms and 
codifies that understanding. The phrase ``losses incurred or credits 
earned'' in the amendment precisely parallels the language in section 
1804 of the Tax Reform Act of 1986 and is intended to have the same 
meaning.
  Several of these corporations have already distributed NOL proceeds 
to their shareholders in reliance on the provisions of the tax reform 
legislation. To change the rules now would be unfair to both the 
corporations and the shareholders who received dividends.
  A lawsuit was filed on the issue, but it was dismissed for lack of 
standing. However, to avoid future costly litigation, congressional 
action is required. My amendment simply clarifies that net operating 
losses are not revenues 

[[Page S 11346]]
required to be redistributed under section 7(i) of ANCSA.
  Mr. AKAKA. Mr. President, the bill before us today contains 
amendments to the Alaska Native Claims Settlement Act. However, I want 
to address my remarks to title II of the bill which contains the text 
of the Hawaiian Home Lands Recovery Act.
  As a member of the Senate Energy and Natural Resources Committee, and 
as the author of the Hawaiian Home Lands Recovery Act during the 103d 
and 104th Congresses, I would like to speak for a few moments about the 
process and mechanisms that this legislation would institute. My 
purpose in doing so is to establish legislative history which will 
better enable Federal agencies to implement the legislation.
  First, let me offer some historical background. More than 70 years 
ago, Prince Jonah Kuhio Kalanianaole issued an urgent plea to the 
Federal Government expressing concern about the plight of native 
Hawaiians. During the late 19th century and the early part of this 
century, the number of native Hawaiians declined dramatically and there 
was a significant disintegration of Hawaiian culture and society.
  The Secretary of the Interior, Franklin Lane, responded to Prince 
Kuhio by recommending that the Federal Government establish a 
homesteading program for native Hawaiians. In his testimony before 
Congress on the Hawaiian homes legislation, Secretary Lane stated that 
the United States has a ``moral obligation to care'' for the native 
Hawaiian people. Secretary Lane went on to say that ``the natives on 
the islands who are our wards, I should say, and for whom in a sense we 
are trustees, are falling off rapidly in numbers and many of them are 
in poverty.''
  In response to this appeal, legislation was drafted to help 
rejuvenate the Hawaiian people by establishing a home lands to promote 
housing and agricultural opportunities. The resulting legislation, 
known as the Hawaiian Homes Commission Act of 1920, set aside 203,000 
acres for this purpose. Homesteading opportunities would allow native 
Hawaiians to, once again, enjoy their traditional lifestyle.
  Regrettably, the enlightened program that Secretary Lane envisioned 
fell far short of expectations. One of the more significant provisions 
of the Hawaiian Homes Commission Act set aside land for native 
Hawaiians in perpetuity. The act permitted the transfer of home lands 
only in exchange for lands of equal value. Unfortunately, the 
prohibition against alienation of land was overlooked or ignored by the 
Federal Government. During Hawaii's territorial period, the Federal 
Government acquired Hawaiian home land in violation of the statutory 
prohibition against alienation. The Federal Government still retains 
1,400 acres of these lands.
  During hearings conducted by the Energy Committee on this issue, the 
committee received a report prepared by the General Accounting Office 
on the Hawaiian Home Lands Program. The most significant finding of the 
GAO report is that land was withdrawn from the home lands by executive 
action on 37 occasions during Hawaii's territorial period. These 
withdrawals were in clear violation of the provision of the Hawaiian 
Homes Commission Act which prohibits the transfer of land unless the 
home lands receives land of equal value in exchange. Native Hawaiians 
have always contended that territorial withdrawals violated the 1920 
act, and the GAO report confirms this fact.
  The Hawaiian Home Lands Recovery Act seeks to redress this issue by 
authorizing the transfer of Federal lands to the Department of Hawaiian 
Home Lands in exchange for Hawaiian home lands retained by the Federal 
Government. Although the term ``exchange'' is used in this legislation, 
there is no expectation that DHHL will relinquish land to the Federal 
Government. DHHL need only relinquish any remaining claim it may have 
to former home lands now controlled by the Federal Government. The bill 
would also provide compensation for lost use of Hawaiian home lands 
controlled by the Federal Government.
  In advance of land being conveyed to the Department of Hawaiian Home 
Lands under sections 203(b) and 203(f) of the bill, the Secretary of 
the Interior is required to determine the value of lands currently 
controlled by the Federal Government that were designated as available 
lands under the Hawaiian Homes Commission Act. It is important to note 
that section 203(a)(1)(A)(i) states that this determination is to be 
made based upon the HHCA, as enacted. Thus, the valuation shall include 
lands designated as home lands under the 1920 Act that are not 
currently part of the home land inventory, whether the withdrawal 
occurred as a result of executive action, or through an act of 
Congress. The Secretary is also required to determine the value of the 
lost use of lands currently controlled by the Federal Government so 
that this, too, can be compensated.
  The valuation required by the legislation is not intended to be a 
unilateral action by the Secretary. On the contrary section 
203(a)(2)(A) requires the use of a valuation method that is acceptable 
to the Chair of the Department of Hawaiian Home Lands and, most 
importantly, is in the best interests of the beneficiaries. These two 
conditions exist regardless of whether the Secretary uses an appraisal 
or non-appraisal method of valuation. Section 203(a)(2)(A) requires the 
Secretary to be an advocate for the best interests of Hawaiian home 
beneficiaries in reaching a determination of value. Thus the Secretary 
has a fiduciary responsibility for seeing to it that the beneficiaries 
receive the maximum possible compensation.
  Under section 203(a), the Secretary need not determine the value of 
land and lost use by appraisal. The committee included a provision 
allowing valuation by a method other than appraisal in order to promote 
a speedy resolution of this longstanding conflict. The committee 
considers valuation by mutual agreement to be far preferable to the 
burdensome process of appraisal. During our hearings on this 
legislation, the Senate Energy and Natural Resources Committee was 
advised that the State of Hawaii had appraised most of the Federal 
properties in question. The GAO, in their report to the committee, 
analyzed and the state appraisals and found the appraisal methodology 
used by the state was appropriate and that proper accounting principles 
were employed. The state appraisals therefore supplant the need for a 
separate appraisal by the Department of the Interior.
  In the unfortunate event that the Interior Department decides to 
proceed with an appraisal, a number of specific safeguards have been 
instituted to ensure that the Department properly discharges its 
fiduciary responsibility to protect the interests of the Hawaiian home 
beneficiaries. These include a guarantee that the Chairman of the 
Department of Hawaiian Home Lands shall have opportunity to present 
evidence of the value of the home lands that were lost as well as the 
value of the lost use of these lands, the right to review and comment 
on a preliminary copy of the appraisal, and most importantly, the 
requirement that the Secretary give full consideration of the evidence 
of value presented by DHHL. Given the responsibility under section 
203(a)(2)(A) that the Secretary represent the best interests of the 
beneficiaries, the requirement in section 203(a)(4)(B) is not 
ephemeral. When construed together, these provisions require the 
Secretary to give great weight to the recommendations of the DHHL on 
matters of value, especially if the interests of home land 
beneficiaries would be advanced by doing so.
  In addition to all these protections, the Chairman of the Department 
of Hawaiian Home Lands has the right to dispute the determinations of 
value for land and lost use. Thus it is unmistakably clear that the 
Secretary and the Chairman of DHHL must mutually consent to the values 
to be determined under section 203 of the bill.
  Section 203(b) authorizes the conveyance of land to the Department of 
Hawaiian Home Lands as compensation for lost lands, and the lost use of 
home lands retained by the Federal Government. This section further 
authorizes the head of any Federal agency to transfer land and 
structures to the Secretary of the Interior for subsequent conveyance 
to DHHL. I want to contrast the two-step conveyance process described 
in section 203(b)(5) with the authority for the General Services 
Administration or the Department of Defense to convey property directly 
to DHHL under Section 203(f)(6) of the bill. A section 203(f)(6) 
conveyance 

[[Page S 11347]]
would be a direct transfer of title, without intervention by the 
Department of the Interior, whereas the Interior Department would act 
as a transfer agent for conveyances executed under section 203(b)(5). 
Let me point out, however, that although jurisdiction and control of 
land would be transferred to the Interior Department under a section 
203(b)(5) conveyance, the Interior Department's responsibility in 
completing the transfer is nothing more than a ministerial function. In 
this case the agency serves as a conduit for consummating the transfer 
of title to the DHHL.
  Section 203(f) of the bill establishes a second means of conveying 
lands to the Department of Hawaiian Home Lands by allowing DHHL to 
obtain lands that are excess to the needs of individual Federal 
agencies. Subsection (f) places the Department of Hawaiian Home Lands 
in the same, or better, status as a Federal agency for the purpose of 
being notified of excess property and for obtaining the property from 
the excessing agency. Under no circumstances should the land that has 
been selected by the Chairman for appraisal under section 203(f)(2), 
and possible conveyance under section 203(f)(5), be transferred or 
otherwise disposed of by any Federal agency until the opportunity of 
the DHHL to obtain the land has expired.
  Finally, let me comment on section 207 of the bill. This section 
establishes a cost sharing for Bureau of Reclamation projects on 
Hawaiian home lands that is the same as the cost sharing authorized for 
projects on Indian lands.
  Mr. WARNER. Mr. President, I ask unanimous consent that the amendment 
be agreed to.
  The PRESIDING OFFICER. Without objection, it is so ordered.
  So the amendment (No. 2110) was agreed to.
  Mr. WARNER. Mr. President, I ask unanimous consent that the committee 
amendment be agreed to, as amended; that the bill be deemed read a 
third time and passed, as amended; that the motion to reconsider be 
laid upon the table; and that any statements relating to the bill be 
placed at the appropriate place in the Record.
  The PRESIDING OFFICER. Without objection, it is so ordered.
  So the bill (H.R. 402) was deemed read the third time and passed, as 
follows:
  [The bill was not available for printing. It will appear in a 
subsequent issue of the Record.]


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