[Congressional Record (Bound Edition), Volume 148 (2002), Part 3]
[House]
[Pages 3478-3480]
[From the U.S. Government Publishing Office, www.gpo.gov]




PROVIDING FOR BINDING ARBITRATION IN LEASES AND CONTRACTS ON RESERVATON 
                  LANDS OF GILA RIVER INDIAN COMMUNITY

  Mr. HAYWORTH. Mr. Speaker, I move to suspend the rules and pass the 
bill (H.R. 3985) to amend the Act entitled ``An Act to authorize the 
leasing of restricted Indian lands for public, religious, educational, 
recreational, residential, business, and other purposes requiring the 
grant of long-term leases'', approved August 9, 1955, to provide for 
binding arbitration clauses in leases and contracts related to 
reservation lands of the Gila River Indian Community.
  The Clerk read as follows:

                               H.R. 3985

       Be it enacted by the Senate and House of Representatives of 
     the United States of America in Congress assembled, That the 
     first section of the Act entitled ``An Act to authorize the 
     leasing of restricted Indian lands for public, religious, 
     educational, recreational, residential, business, and other 
     purposes requiring the grant of long-term leases'', approved 
     August 9, 1955, (69 Stat. 539; 25 U.S.C. 415) is amended by 
     adding at the end the following new subsection:
       ``(f) Any lease entered into under the Act of August 9, 
     1955 (69 Stat. 539), as amended, or any contract entered into 
     under section 2103 of the Revised Statutes (25 U.S.C. 81), as 
     amended, affecting land within the Gila River Indian 
     Community Reservation may contain a provision for the binding 
     arbitration of disputes arising out of such lease or 
     contract. Such leases or contracts entered into pursuant to 
     such Acts shall be considered within the meaning of 
     `commerce' as defined and subject to the provisions of 
     section 1 of title 9, United States Code. Any refusal to 
     submit to arbitration pursuant to a binding agreement for 
     arbitration or the exercise of any right conferred by title 9 
     to abide by the outcome of arbitration pursuant to the 
     provisions of chapter 1 of title 9, sections 1 through 14, 
     United States Code, shall be deemed to be a civil action 
     arising under the Constitution, laws or treaties of the 
     United States within the meaning of section 1331 of title 28, 
     United States Code.''.

  The SPEAKER pro tempore. Pursuant to the rule, the gentleman from 
Arizona (Mr. Hayworth) and the gentleman from American Samoa (Mr. 
Faleomavaega) each will control 20 minutes.
  The Chair recognizes the gentleman from Arizona (Mr. Hayworth).

                              {time}  1415

  Mr. HAYWORTH. Mr. Speaker, I yield myself such time as I may consume.
  Mr. Speaker, I look forward to working with my friend, the gentleman 
from American Samoa (Mr. Faleomavaega) this afternoon on the 
legislation.
  Mr. Speaker, the Gila River Indian community is currently a finalist 
in the new Arizona Cardinals Stadium site selection process. In 
connection with the possible development of the stadium on the Gila 
River Indian Community's reservation, the issue has arisen regarding 
the need for certainty with respect to resolution of contract disputes 
between the Gila River Indian Community and its business lease tenants.
  Many of the community's commercial contracts provide for arbitration 
of disputes. They further provide that the agreement to arbitrate and 
any arbitration decision may be enforced in either tribal or Federal 
court. Unfortunately, tenants and their lenders remain uncomfortable 
with the tribal court for a variety of reasons, and Federal courts 
would lack jurisdiction over contract disputes between private business 
entities and Indian tribes.
  In addition to the possible development of a stadium site, the 
community has developed the business part for high-end commercial uses. 
Since potential business partners see no viable means to enforce 
contract and land lease arbitration provisions, some very good 
potential tenants for the community's business park and other potential 
business partners have in the past decided to look elsewhere. Providing 
potential tenants with a Federal court remedy if the community refuses 
to arbitrate according to agreed-to lease provisions will cause quality 
developers to be more interested in leasing land in the business part 
because leases will be more financeable and marketable.
  The Salt River Pima-Maricopa Indian Community, also in my 
congressional district, has been successful in attracting commercial 
tenants to its various projects. One reason for its success is a unique 
Federal statute that Congress adopted in 1983. This statute basically 
provides that with respect to Salt River leases, Federal courts have 
jurisdiction to enforce agreements to arbitrate and any resulting 
arbitration decision. To a large extent, this statute has enabled Salt 
River leases to be financeable and marketable. Attorneys for the Salt 
River Pima-Maricopa Indian Community report that there has never been 
any Federal court litigation filed pursuant to the statute since it was 
adopted nearly 20 years ago. Still the statute has provided assurance 
to tenants that, if necessary, there is an available forum other than 
tribal court to enforce Salt River's agreement to arbitrate lease 
disputes.
  Mr. Speaker, I would also mention that the introduction of this 
legislation does not in any way imply any preference for the selection 
of the Gila River Indian Community for the site of the Arizona 
Cardinals stadium. I feel that both the Gila River Indian Community 
site and the city of Mesa site will serve as excellent possibilities 
for construction of a new stadium. This

[[Page 3479]]

legislation, however, will help ensure that the best possible business 
environment will exist if the stadium is to be built. Therefore, I 
would urge passage of the bill.
  Mr. Speaker, I reserve the balance of my time.
  Mr. FALEOMAVAEGA. Mr. Speaker, I yield myself such time as I may 
consume.
  Mr. FALEOMAVAEGA. Mr. Speaker, I certainly would like to commend my 
good friend and colleague, the gentleman from Arizona (Mr. Hayworth) 
for his management of this piece of legislation.
  Mr. Speaker, I rise in support of H.R. 3985, a bill to assist the 
Gila River Indian Community in the State of Arizona with the plans of 
economic development of tribal lands. I want to thank and congratulate 
again the two sponsors of this legislation, the gentleman from Arizona 
(Mr. Hayworth) and also my good friend, the gentleman from Arizona (Mr. 
Pastor) for their hard work in bringing this bill before us today. Both 
gentlemen from Arizona are good friends of Indian tribes and are often 
at the forefront of issues important to all of our Native American 
community.
  The Gila River Indian Community is one of the several Indian tribes 
which has taken full advantage of the proceeds it receives from a well-
run gaming facility to diversify into a comprehensive economic 
development plan. It is a true success story that this Indian tribe, 
which not so long ago was impoverished, stands at the brink of becoming 
the home of the Arizona Cardinals National Football stadium. Years of 
good management, principles, smart business practices and innovative 
thinking on behalf of the tribal leaders has brought them to this 
point.
  In order to encourage business development on the Gila River 
Reservation, the tribe has adopted standard provisions in its 
commercial agreements which provide for arbitration should any dispute 
arise. This legislation will provide Federal court jurisdiction to 
enforce both agreements for arbitration and any resulting arbitration 
decisions.
  Unfortunately, many non-Indian businesses still lack a full 
understanding of tribal courts and remain uncomfortable with the 
prospect of pursuing disputes there. The tribe has asked Congress to 
provide this Federal court remedy to assist them in their economic 
pursuits. In a letter to the Committee on Resources ranking member, the 
gentleman from West Virginia (Mr. Rahall), Gila River Indian River 
Community Governor Donald Antone, Sr., wrote, ``The community has found 
this formulation to provide a level of comfort to certain non-Indian 
businesses who are largely unfamiliar with tribal governments and their 
judicial system.''
  This is an example of tribal self-determination at its finest, and I 
wish to commend Governor Antone and the Gila River Tribal Council 
continued success as they blend their ancient culture with moderate 
economic developments to enhance the lives of all their members.
  Mr. Speaker, I just want to mention the fact that the Arizona 
Cardinals National Football team was mentioned here. I have had a 
couple of my cousins that have played for the Cardinals. In fact, one 
currently plays for the Arizona Cardinals. His name Ma'o Tosi. He is 
only six-foot-five and he weighs 300 pounds. I would like to offer my 
challenge to our Native American community, where are your Jim Thorpes 
and Jimmy Sixkillers? We need more of them. I would like to suggest to 
my friend from Arizona (Mr. Hayworth), I would be more than happy to 
accommodate any of your needs, if you need more Samoan football players 
for the Arizona Cardinal team.
  With this in mind, Mr. Speaker, I urge my colleagues to support this 
legislation. Again, I thank my good friend from Arizona (Mr. Hayworth).
  Mr. Speaker, I reserve the balance of my time.
  Mr. HAYWORTH. Mr. Speaker, I yield myself such time as I may consume.
  Mr. Speaker, I thank my friend, the gentleman from American Samoa 
(Mr. Faleomavaega). For purposes of full disclosure, we should point 
out he is quite right. In fact, both the University of Arizona and 
Arizona State University have enjoyed great success with athletes from 
American Samoa, and for purposes of full disclosure, my alma mater, 
N.C. State, enjoyed the services of Niko Noga as middle guard.
  We appreciate the athletic prowess of our friends, but more than 
football, and obviously, we are focused on this possibility, but in 
spite of football you can see, really, we are looking at financial 
opportunities and economic possibilities for the Gila River Indian 
Community, much like the Salt River Pima-Maricopa Community, also in my 
district, has enjoyed. So this legislation which we join together in a 
bipartisan fashion to champion today is all about economic opportunity. 
That is the real possibility we champion here today, even as we 
certainly tip our rhetorical cap to the great athletes of American 
Samoa who have performed so admirably in the State of Arizona.
  Mr. Speaker, I reserve the balance of my time.
  Mr. FALEOMAVAEGA. Mr. Speaker, I yield myself such time as I may 
consume.
  Mr. Speaker, I think this is also a classic example where we find 
that we recognize the sovereignty of our Native American people, but at 
the same time we also recognize that there is a sense of flexibility 
where if there are problems that are needful, not only from the 
business community, to allow issues that need to be taken or arbitrated 
or adjudicated, be taken to the Federal courts. I think this is an 
example of where the States and the tribes can work together and 
provide solutions to whatever problems arise. I think this legislation 
provides for that.
  Mr. Speaker, again I commend both of my friends, the gentlemen from 
Arizona (Mr. Pastor and Mr. Hayworth) for working together with our 
Indian tribes and with the members of the business community of Arizona 
that we now have provided a resolution to the problem that we have been 
faced with.
  I commend my good friend for his efforts.
  Mr. Speaker, I yield back the balance of my time.
  Mr. HAYWORTH. Mr. Speaker, I yield myself such time as I may consume.
  Mr. Speaker, again I would thank my friend, the gentleman from 
American Samoa (Mr. Faleomavaega), and let me simply say that it is my 
hope that this example can be replicated to offer economic opportunity 
throughout the width and breadth of Indian country as we move in the 
days ahead. I would urge my colleagues to support the legislation.
  Mr. PASTOR. Mr. Speaker, I rise today as an original co-sponsor of 
this important legislation which will help to bring needed economic 
development opportunities to the Gila River Indian Community located in 
Phoenix.
  In recent months, there have been many inquiries to the Gila River 
Indian Community from potential tenants for purposes of creating 
establishment of business. These businesses will not only provide 
needed job opportunities, but also serve the consumers of Phoenix.
  However, one of the persistent questions of potential tenants 
concerns how lease disputes might be resolved. Many of the Community's 
commercial contracts provide for arbitration of disputes. They further 
provide that the agreement to arbitrate may be enforced in either 
Tribal or Federal Court. There exists, however, an unusual and 
troubling circumstance associated with this practice. Unfortunately, 
some tenants and their lenders are uncomfortable with the use of Tribal 
Courts, and Federal Courts generally lack jurisdiction over landlord-
tenant disputes.
  This legislation is simply an attempt to make potential business 
developers and their lenders more comfortable with the method used to 
settle any disputes or disagreements.
  A similar arrangement is already in place with the Salt River Pima-
Maricopa Indian Community, and it is my understanding that there has 
never been any Federal Court litigation filed since the statute was 
adopted almost 20 years ago. Still, the statute has provided assurances 
and peace of mind to the businesses who have located there. This 
legislation would virtually establish the same legal proceedings and 
options for the Gila River Indian Community.
  The Gila River Indian Community fully supports this legislation.

[[Page 3480]]

  Mr. Speaker, again, I wish to express my support for this legislation 
and ask my colleagues to vote for passage.
  Mr. HAYWORTH. Mr. Speaker, I yield back the balance of my time.
  The SPEAKER pro tempore (Mr. Culberson). The question is on the 
motion offered by the gentleman from Arizona (Mr. Hayworth) that the 
House suspend the rules and pass the bill, H.R. 3985.
  The question was taken; and (two-thirds having voted in favor 
thereof) the rules were suspended and the bill was passed.
  A motion to reconsider was laid on the table.

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