[Congressional Record Volume 142, Number 138 (Monday, September 30, 1996)]
[Senate]
[Pages S11973-S11974]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mr. DORGAN (for himself, Mr. Daschle, and Mr. Pressler):
  S. 2162. A bill to provide for the disposition of certain funds 
appropriated to pay judgments in favor of the Mississippi Sioux 
Indians, and for other purposes; to the Committee on Indian Affairs.


  the mississippi sioux tribes judgment fund distribution act of 1996

  Mr. DORGAN. Mr. President, I rise today to introduce legislation 
which will fairly resolve a longstanding problem with respect to a 
judgment distribution to Sioux tribes in the Dakotas and Montana. 
Specifically, the bill would distribute the accrued interest on funds 
awarded by the Indian Claims Commission in 1967 to the Mississippi 
Sioux tribes. I am pleased to be joined by Senators Daschle and 
Pressler in introducing this measure.
  In 1972, Congress enacted legislation that authorized the Secretary 
of the Interior to distribute 75 percent of a $5,900,000 judgment award 
to the Devils Lake Sioux Tribe of North Dakota, the Sisseton and 
Wahpeton Sioux Tribe of North and South Dakota, and the Assiniboine and 
Sioux Tribes of the Fort Peck Reservation in Montana. The remaining 25 
percent was to be distributed to individuals who could trace their 
lineal ancestry to a member of the aboriginal Sisseton and Wahpeton 
Sioux Tribe.
  The three Sioux tribes received their respective shares of the 
judgment award by the mid-1970's. To date, though, the funds allocated 
for the lineal descendants have never been distributed. This has 
resulted in a situation where the accrued interest on the original 
principal of approximately $1.5 million has now grown to more than $13 
million.
  If the 1,969 lineal descendants identified by the Department of the 
Interior receive per capita payments, they would receive more than 18 
times what the 11,829 enrolled tribal members received in the 1970's.
  In 1987, the three Sioux tribes filed suit in Federal court to 
challenge the constitutionality of the lineal descendancy provisions of 
the 1972 Act. This litigation is currently in its second appeal. In 
1992, Congress enacted legislation which authorized the Attorney 
General to settle the case on any terms agreed to by the parties 
involved. However, the Department of Justice has refused to proceed 
with any settlement negotiations and has taken the position that the 
1992 law did not authorize the Department to settle the case on any 
terms other than those laid out in the original 1972 act. While I 
believe this interpretation flies in the face of congressional intent, 
the Department has been unwilling to actively pursue this issue.
  The legislation I am introducing on behalf of the three Sioux tribes 
represents a reasonable solution to this matter and a substantial 
compromise on behalf of the tribes. In the past, the tribes have sought 
to repeal the lineal descendancy provisions of the 1972 act altogether, 
and, in 1986, a bill was reported by the Senate Committee on Indian 
Affairs which would have achieved this goal.
  In contrast, the Mississippi Sioux Tribes Judgment Fund Distribution 
Act of 1996 would retain the undistributed principal for the lineal 
descendants and distribute the accrued interest to the three Sioux 
tribes. There would be no per capita payments of the interest, which 
would have to be used by the tribes for economic development, resource 
development, or for other programs that collectively benefit tribal 
members, such as educational and social welfare programs. In addition, 
the legislation contains an audit requirement by the Secretary of the 
Interior to ensure that the funds are properly managed.
  I believe that this legislation is fundamentally fair. It keeps the 
commitment that the Federal Government made to provide compensation to 
lineal descendants while ensuring that most of the remaining 
undistributed funds go to the tribes. It was, after all, the

[[Page S11974]]

tribes who were wronged and who should be compensated for their losses.
  Mr. President, I ask unanimous consent that my bill be printed in the 
Record.
  There being no objection, the bill was ordered to be printed in the 
Record, as follows:

                                S. 2162

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

     SECTION 1. SHORT TITLE.

       This Act may be cited as the ``Mississippi Sioux Tribes 
     Judgment Fund Distribution Act of 1996''.

     SEC. 2. DEFINITIONS.

       For purposes of this Act, the following definitions shall 
     apply:
       (1) Covered indian tribe.--The term ``covered Indian 
     tribe'' means an Indian tribe listed in section 4(a).
       (2) Secretary.--The term ``Secretary'' means the Secretary 
     of the Interior.
       (3) Tribal governing body.--The term ``tribal governing 
     body'' means the duly elected governing body of a covered 
     Indian tribe.

     SEC. 3. DISTRIBUTION TO, AND USE OF CERTAIN FUNDS BY, THE 
                   SISSETON AND WAHPETON TRIBES OF SIOUX INDIANS.

       Notwithstanding any other provision of law, including 
     Public Law 92-555 (25 U.S.C. 1300d et seq.), any funds made 
     available by appropriations under Public Law 90-352 to the 
     Sisseton and Wahpeton Tribes of Sioux Indians to pay a 
     judgment in favor of the Tribes in Indian Claims Commission 
     dockets numbered 142 and 359, including interest, after 
     payment of attorney fees and other expenses, that, as of the 
     date of enactment of this Act, have not been distributed, 
     shall be distributed and used in accordance with this Act.

     SEC. 4. DISTRIBUTION OF FUNDS TO TRIBES.

       (a) In General.--Subject to section 5, as soon as 
     practicable after the date that is 1 year after the date of 
     enactment of this Act, the Secretary shall distribute an 
     aggregate amount, equal to the funds described in section 3 
     reduced by $1,469,831.50, as follows:
       (1) 28.9276 percent of such amount shall be distributed to 
     the tribal governing body of the Devils Lake Sioux Tribe of 
     North Dakota.
       (2) 57.3145 percent of such amount shall be distributed to 
     the tribal governing body of the Sisseton and Wahpeton Sioux 
     Tribe of South Dakota.
       (3) 13.7579 percent of such amount shall be distributed to 
     the tribal governing body of the Assiniboine and Sioux Tribes 
     of the Fort Peck Reservation in Montana, as designated under 
     subsection (b).
       (b) Tribal Governing Body of Assiniboine and Sioux Tribes 
     of Fort Peck Reservation.--For purposes of making 
     distributions of funds pursuant to this Act, the Sisseton and 
     Wahpeton Sioux Council of the Assiniboine and Sioux Tribes 
     shall act as the governing body of the Assiniboine and Sioux 
     Tribes of the Fort Peck Reservation.

     SEC. 5. ESTABLISHMENT OF TRIBAL TRUST FUNDS.

       (a) In General.--As a condition to receiving funds 
     distributed under section 4, each tribal governing body 
     referred to in section 4(a) shall establish a trust fund 
     for the benefit of the covered Indian tribe under the 
     jurisdiction of that tribal governing body, consisting 
     of--
       (1) amounts deposited into the trust fund; and
       (2) any interest that accrues from investments made from 
     amounts deposited into the trust fund.
       (b) Trustee.--Each tribal governing body that establishes a 
     trust fund under this section shall--
       (1) serve as the trustee of the trust fund; and
       (2) administer the trust fund in accordance with section 6.

     SEC. 6. USE OF DISTRIBUTED FUNDS.

       (a) Prohibition.--No funds distributed to a covered Indian 
     tribe under section 4 may be used to make per capita payments 
     to members of the covered Indian tribe.
       (b) Purposes.--The funds distributed under section 4 may be 
     used by a tribal governing body referred to in section 4(a) 
     only for the purpose of making investments or expenditures 
     that the tribal governing body determines to be reasonably 
     related to--
       (1) economic development that is beneficial to the covered 
     Indian tribe;
       (2) the development of resources of the covered Indian 
     tribe; or
       (3) the development of a program that is beneficial to 
     members of the covered Indian tribe, including educational 
     and social welfare programs.
       (c) Audits.--
       (1) In general.--The Secretary shall conduct and annual 
     audit to determine whether each tribal governing body 
     referred to in section 4(a) is managing the trust fund 
     established by the tribal governing body under section 5 in 
     accordance with the requirements of this section.
       (2) Action by the secretary.--
       (A) In general.--If, on the basis of an audit conducted 
     under paragraph (1), the Secretary determines that a covered 
     Indian tribe is not managing the trust fund established by 
     the tribal governing body under section 5 in accordance with 
     the requirements of this section, the Secretary shall require 
     the covered Indian tribe to take remedial action to achieve 
     compliance.
       (B) Appointment of independent trustee.--If, after a 
     reasonable period of time specified by the Secretary, a 
     covered Indian tribe does not take remedial action under 
     subparagraph (A), the Secretary, in consultation with the 
     tribal governing body of the covered Indian tribe, shall 
     appoint an independent trustee to manage the trust fund 
     established by the tribal governing body under section 5.

     SEC. 7. EFFECT OF PAYMENTS TO COVERED INDIAN TRIBES ON 
                   BENEFITS.

       (a) In General.--A payment made to a covered Indian Tribe 
     or an individual under this Act shall not--
       (1) for purposes of determining the eligibility for a 
     Federal service or program of a covered Indian tribe, 
     household, or individual, be treated as income or resources; 
     or
       (2) otherwise result in the reduction or denial of any 
     service or program to which, pursuant to Federal law 
     (including the Social Security Act (42 U.S.C. 301 et seq.)), 
     the covered Indian tribe, household, or individual would 
     otherwise be entitled.
       (b) Tax Treatment.--A payment made to a covered Indian 
     tribe or individual under this Act shall not be subject to 
     any Federal or State income tax.

     SEC. 8. DISTRIBUTION OF FUNDS TO LINEAL DESCENDANTS.

       Not later than 1 year after the date of enactment of this 
     Act, of the funds described in section 3, the Secretary 
     shall, in the manner prescribed in section 202(c) of Public 
     Law 92-555 (25 U.S.C. 1300d-4(c)), distribute an amount equal 
     to $1,469,831.50 to the lineal descendants of the Sisseton 
     and Wahpeton Tribes of Sioux Indians.
  Mr. PRESSLER. Mr. President, I rise to speak on legislation that the 
senior Senator from North Dakota is introducing today that will provide 
for the distribution of a judgment to the Sisseton-Wahpeton Sioux Tribe 
and lineal descendants of tribe members.
  This issue has been in litigation for many years and has been 
previously dealt with by Congress. Still, the issue remains unresolved.
  I want to see this matter taken care of to the satisfaction of all 
parties involved, once and for all. I believe the legislation the 
Senator from North Dakota is sponsoring is an essential first step in 
getting the job done. While perhaps not the ultimate resolution of the 
issue, the legislation should be carefully considered by Congress. All 
parties involved deserve a chance to be heard.
  As I believe thoughtful, bipartisan consideration of this bill will 
help push this issue off dead center and rolling toward resolution, I 
have decided to cosponsor this legislation. I urge my colleagues to 
give it serious consideration when the measure appears before them in 
committee and on the Senate floor.
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