[Congressional Record Volume 143, Number 26 (Tuesday, March 4, 1997)]
[Senate]
[Pages S1925-S1926]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mr. DORGAN (for himself, Mr. Conrad, Mr. Johnson, Mr. Daschle, 
        Mr. Baucus, and Mr. Burns):
  S. 391. A bill to provide for the disposition of certain funds 
appropriated to pay judgment 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 1997

 Mr. DORGAN. Mr. President, I introduce legislation which will 
equitably resolve a longstanding problem involving a judgment fund 
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 Conrad, Johnson, Daschle, Baucus, and 
Burns in introducing this measure.
  In 1972, Congress enacted legislation which authorized the Secretary 
of the Interior to distribute 75 percent of a $5,900,000 judgment award 
to the Spirit 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 
to the lineal descendants have not been distributed. This has resulted 
in a situation in which the accrued interest on the original principal 
of approximately $1.5 million has now grown to more than $13 million.
  Today, if the 1,969 lineal descendants identified by the Department 
of the Interior receive their per capita payments, they will be paid 
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. I support this approach because I believe that it is long 
overdue that this matter be resolved. 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 view this interpretation as flying in the 
face of Congressional intent, the Department has been unwilling to 
change its position or actively seek a resolution of this matter 
outside of the courts.
  The legislation I am introducing with my colleagues on behalf of the 
three Sioux tribes represents a reasonable solution to this protracted 
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 to the 1986 measure, the Mississippi Sioux Tribes 
Judgment Fund Distribution Act of 1997 would retain the undistributed 
principal for the lineal descendants and distribute the accrued 
interest to the three Sioux tribes. The distributed funds would have to 
be deposited into a trust fund administered by the tribal governing 
body. There would be no per capita payments of these funds, 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 takes a fundamentally fair approach 
to resolving a matter which will otherwise remain mired in legal 
disputes for years. 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 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. 391

       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 1997''.

     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 chapter II of Public Law 
     90-352 (82 Stat. 239) 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 Spirit 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

[[Page S1926]]

     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 an 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.

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