[Congressional Record Volume 145, Number 151 (Monday, November 1, 1999)]
[Senate]
[Page S13605]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mr. WELLSTONE:
  S. 1838. A bill to provide that certain income derived from an 
agreement between the Bois Forte Band of Chippewa Indians and the State 
of Minnesota shall not be considered income for purposes of Federal 
assistance eligibility; to the Committee on Indian Affairs.


   income exemption from federal assistance eligibility requirements

 Mr. WELLSTONE. Mr. President, I am introducing today 
legislation of great importance to two tribes in Minnesota, the Bois 
Forte Bank of Chippewa and the Grand Portage Band of Chippewa. This 
bill would exempt income derived from an agreement between the two 
bands and the State of Minnesota from being considered as income for 
purposes of Federal assistance eligibility when the funds from the 
agreement are distributed to tribal members.
  Under current law, most payments to Indians derived from trust 
resources are exempt from consideration as income or resources for the 
purposes of determining federal benefits under various Federal or 
federally assisted programs. Regulations promulgated by various Federal 
agencies reflect the statutory exemptions for income derived from 
interests of individual Indians in trust or restricted lands and from 
payments distributed to tribal members as the result of Indian claims 
awards. This legislation is to accord similar treatment to payments 
made to the approximately 2,700 members of the Bois Forte Band and the 
790 members of the Grand Portage Band.
  In 1988 the two bands entered into an agreement with the state of 
Minnesota whereby the State agreed to make an annual payment to the 
bands in exchange for the bands' restriction of their members' hunting 
and fishing rights. These rights are guaranteed by the treaty of 
September 30, 1854. From that payment, the Tribal Councils of the Bands 
make small annual payments to their members. The Bois Forte Band pays 
each of its members $500 per year, for example. The shares of minors 
are paid into a trust fund that cannot and disbursed until the minor 
reaches the age of 18. The shares of adults are paid directly to them.
  These payments are intended to compensate the band members for a 
Federal treaty right that they have elected to forgo in return for 
these funds. As a result, this constitutes income which is derived from 
a trust resource. The intent of the Federal law is that such funds--up 
to a certain level, are not treated as income for purposes of Federal 
benefit eligibility. This is in recognition of the special status of 
Indian tribes within the United States, and the trust relationship that 
the Federal Government maintains to this day. However, while these 
payments clearly fall within the intent Federal law to protect trust 
resources, the current statute does not encompass these payments.
  The result is that for a small number of band members, approximately 
10 percent of the Bois Forte band and currently no members of the Grand 
Portage Band, this income is of no real benefit because it reduces or 
eliminates their public assistance payment. These members are all 
extremely poor, elderly, or disabled. Mr. President, these are people 
who can least afford to bear the brunt of this loophole in Federal law.
  Additionally, Mr. President, these band members see a spike in their 
income--an extremely small spike mind you--in 1 month out of the year. 
Does it serve any public purpose to kick them off of Federal assistance 
in that 1 month, only to require them to reapply in the following 
month? Their circumstances are not changed by this payment. These funds 
will not lift anyone out of poverty, they do not replace an income lost 
to disability or age.
  This bill will ensure that members of the Bois Forte and Grand 
Portage Bands receive fair--though small--compensation for their 
foregone treaty rights. It is a question of simple equity and I urge my 
colleagues to support it.
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