[Congressional Record (Bound Edition), Volume 156 (2010), Part 1]
[House]
[Pages 187-189]
[From the U.S. Government Publishing Office, www.gpo.gov]




             INDIAN ARTS AND CRAFTS AMENDMENTS ACT OF 2010

  Ms. BORDALLO. Mr. Speaker, I move to suspend the rules and pass the 
bill (H.R. 725) to protect Indian arts and crafts through the 
improvement of applicable criminal proceedings, and for other purposes, 
as amended.
  The Clerk read the title of the bill.
  The text of the bill is as follows:

                                H.R. 725

       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 ``Indian Arts and Crafts 
     Amendments Act of 2010''.

     SEC. 2. INDIAN ARTS AND CRAFTS.

       (a) Criminal Proceedings; Civil Actions; 
     Misrepresentations.--Section 5 of the Act entitled ``An Act 
     to promote the development of Indian arts and crafts and to 
     create a board to assist therein, and for other purposes'' 
     (25 U.S.C. 305d) is amended to read as follows:

     ``SEC. 5. CRIMINAL PROCEEDINGS; CIVIL ACTIONS.

       ``(a) Definition of Federal Law Enforcement Officer.--In 
     this section, the term `Federal law enforcement officer' 
     includes a Federal law enforcement officer (as defined in 
     section 115(c) of title 18, United States Code).
       ``(b) Authority To Conduct Investigations.--Any Federal law 
     enforcement officer shall have the authority to conduct an 
     investigation relating to an alleged violation of this Act 
     occurring within the jurisdiction of the United States.
       ``(c) Criminal Proceedings.--
       ``(1) Investigation.--
       ``(A) In general.--The Board may refer an alleged violation 
     of section 1159 of title 18, United States Code, to any 
     Federal law enforcement officer for appropriate 
     investigation.
       ``(B) Referral not required.--A Federal law enforcement 
     officer may investigate an alleged violation of section 1159 
     of that title regardless of whether the Federal law 
     enforcement officer receives a referral under subparagraph 
     (A).
       ``(2) Findings.--The findings of an investigation of an 
     alleged violation of section 1159 of title 18, United States 
     Code, by any Federal department or agency under paragraph 
     (1)(A) shall be submitted, as appropriate, to--
       ``(A) a Federal or State prosecuting authority; or
       ``(B) the Board.
       ``(3) Recommendations.--On receiving the findings of an 
     investigation under paragraph (2), the Board may--
       ``(A) recommend to the Attorney General that criminal 
     proceedings be initiated under section 1159 of title 18, 
     United States Code; and
       ``(B) provide such support to the Attorney General relating 
     to the criminal proceedings as the Attorney General 
     determines to be appropriate.
       ``(d) Civil Actions.--In lieu of, or in addition to, any 
     criminal proceeding under subsection (c), the Board may 
     recommend that the Attorney General initiate a civil action 
     under section 6.''.
       (b) Cause of Action for Misrepresentation.--Section 6 of 
     the Act entitled ``An Act to promote the development of 
     Indian arts and crafts and to create a board to assist 
     therein, and for other purposes'' (25 U.S.C. 305e) is 
     amended--
       (1) by striking subsection (d);
       (2) by redesignating subsections (a) through (c) as 
     subsections (b) through (d), respectively;
       (3) by inserting before subsection (b) (as redesignated by 
     paragraph (2)) the following:
       ``(a) Definitions.--In this section:
       ``(1) Indian.--The term `Indian' means an individual that--
       ``(A) is a member of an Indian tribe; or
       ``(B) is certified as an Indian artisan by an Indian tribe.
       ``(2) Indian product.--The term `Indian product' has the 
     meaning given the term in any regulation promulgated by the 
     Secretary.
       ``(3) Indian tribe.--
       ``(A) In general.--The term `Indian tribe' has the meaning 
     given the term in section 4 of the Indian Self-Determination 
     and Education Assistance Act (25 U.S.C. 450b).
       ``(B) Inclusion.--The term `Indian tribe' includes, for 
     purposes of this section only, an Indian group that has been 
     formally recognized as an Indian tribe by--
       ``(i) a State legislature;
       ``(ii) a State commission; or
       ``(iii) another similar organization vested with State 
     legislative tribal recognition authority.
       ``(4) Secretary.--The term `Secretary' means the Secretary 
     of the Interior.'';
       (4) in subsection (b) (as redesignated by paragraph (2)), 
     by striking ``subsection (c)'' and inserting ``subsection 
     (d)'';
       (5) in subsection (c) (as redesignated by paragraph (2))--
       (A) by striking ``subsection (a)'' and inserting 
     ``subsection (b)''; and
       (B) by striking ``suit'' and inserting ``the civil 
     action'';
       (6) by striking subsection (d) (as redesignated by 
     paragraph (2)) and inserting the following:
       ``(d) Persons That May Initiate Civil Actions.--
       ``(1) In general.--A civil action under subsection (b) may 
     be initiated by--
       ``(A) the Attorney General, at the request of the Secretary 
     acting on behalf of--
       ``(i) an Indian tribe;
       ``(ii) an Indian; or
       ``(iii) an Indian arts and crafts organization;
       ``(B) an Indian tribe, acting on behalf of--
       ``(i) the Indian tribe;
       ``(ii) a member of that Indian tribe; or
       ``(iii) an Indian arts and crafts organization;
       ``(C) an Indian; or
       ``(D) an Indian arts and crafts organization.

[[Page 188]]

       ``(2) Disposition of amounts recovered.--
       ``(A) In general.--Except as provided in subparagraph (B), 
     an amount recovered in a civil action under this section 
     shall be paid to the Indian tribe, the Indian, or the Indian 
     arts and crafts organization on the behalf of which the civil 
     action was initiated.
       ``(B) Exceptions.--
       ``(i) Attorney general.--In the case of a civil action 
     initiated under paragraph (1)(A), the Attorney General may 
     deduct from the amount--

       ``(I) the amount of the cost of the civil action and 
     reasonable attorney's fees awarded under subsection (c), to 
     be deposited in the Treasury and credited to appropriations 
     available to the Attorney General on the date on which the 
     amount is recovered; and
       ``(II) the amount of the costs of investigation awarded 
     under subsection (c), to reimburse the Board for the 
     activities of the Board relating to the civil action.

       ``(ii) Indian tribe.--In the case of a civil action 
     initiated under paragraph (1)(B), the Indian tribe may deduct 
     from the amount--

       ``(I) the amount of the cost of the civil action; and
       ``(II) reasonable attorney's fees.''; and

       (7) in subsection (e), by striking ``(e) In the event 
     that'' and inserting the following:
       ``(e) Savings Provision.--If''.

     SEC. 3. MISREPRESENTATION OF INDIAN PRODUCED GOODS AND 
                   PRODUCTS.

       Section 1159 of title 18, United States Code, is amended--
       (1) by striking subsection (b) and inserting the following:
       ``(b) Penalty.--Any person that knowingly violates 
     subsection (a) shall--
       ``(1) in the case of a first violation by that person--
       ``(A) if the applicable goods are offered or displayed for 
     sale at a total price of $1,000 or more, or if the applicable 
     goods are sold for a total price of $1,000 or more--
       ``(i) in the case of an individual, be fined not more than 
     $250,000, imprisoned for not more than 5 years, or both; and
       ``(ii) in the case of a person other than an individual, be 
     fined not more than $1,000,000; and
       ``(B) if the applicable goods are offered or displayed for 
     sale at a total price of less than $1,000, or if the 
     applicable goods are sold for a total price of less than 
     $1,000--
       ``(i) in the case of an individual, be fined not more than 
     $25,000, imprisoned for not more than 1 year, or both; and
       ``(ii) in the case of a person other than an individual, be 
     fined not more than $100,000; and
       ``(2) in the case of a subsequent violation by that person, 
     regardless of the amount for which any good is offered or 
     displayed for sale or sold--
       ``(A) in the case of an individual, be fined under this 
     title, imprisoned for not more than 15 years, or both; and
       ``(B) in the case of a person other than an individual, be 
     fined not more than $5,000,000.''; and
       (2) in subsection (c), by striking paragraph (3) and 
     inserting the following:
       ``(3) the term `Indian tribe'--
       ``(A) has the meaning given the term in section 4 of the 
     Indian Self-Determination and Education Assistance Act (25 
     U.S.C. 450b); and
       ``(B) includes, for purposes of this section only, an 
     Indian group that has been formally recognized as an Indian 
     tribe by--
       ``(i) a State legislature;
       ``(ii) a State commission; or
       ``(iii) another similar organization vested with State 
     legislative tribal recognition authority; and''.

  The SPEAKER pro tempore. Pursuant to the rule, the gentlewoman from 
Guam (Ms. Bordallo) and the gentleman from Utah (Mr. Bishop) each will 
control 20 minutes.
  The Chair recognizes the gentlewoman from Guam.


                             General Leave

  Ms. BORDALLO. Mr. Speaker, I ask unanimous consent that all Members 
may have 5 legislative days in which to revise and extend their remarks 
and include extraneous material on the bill under consideration.
  The SPEAKER pro tempore. Is there objection to the request of the 
gentlewoman from Guam?
  There was no objection.
  Ms. BORDALLO. Mr. Speaker, on behalf of the Natural Resources 
Committee chairman, Mr. Nick Rahall, and myself, I would like to 
commend the gentleman from Arizona, Representative Ed Pastor, for 
sponsoring the pending measure and for working with the committee to 
bring it before the full House.
  The sale of misrepresented and counterfeit American Indian jewelry, 
pottery, baskets, rugs, and other items cheats the consumer, degrades 
the entire native market, and robs talented, hardworking native 
artisans of their living. This has been a growing problem that Mr. 
Pastor's legislation will effectively address.
  H.R. 725 would amend the Indian Arts and Crafts Act of 1990 to 
authorize any Federal law enforcement officer to conduct an 
investigation of an offense involving the sale of any good that is 
represented as an Indian-produced good. The legislation also requires 
that the findings of an investigation of an alleged offense be 
submitted to a Federal or State prosecuting authority or to the Indian 
Arts and Crafts Board.
  Again, I want to commend my colleague Mr. Pastor of Arizona for his 
hard work and dedication to this piece of legislation. He is addressing 
a longstanding problem with this bill, and I ask my colleagues to 
support its passage.
  I reserve the balance of my time.
  Mr. BISHOP of Utah. I rise to slowly yield myself such time as I may 
consume.
  Mr. Speaker, Republicans have no objections to H.R. 725, and indeed, 
we support appropriate law enforcement efforts to stop illegal 
counterfeiting of Indian arts and crafts. However, I would like to note 
a concern for the record, because this bill could have been written in 
a way to increase its effectiveness.
  At the committee hearing on H.R. 725, it became clear that the Bureau 
of Indian Affairs' Office of Law Enforcement is contemplated to be the 
primary agency to investigate and enforce any violations of this new 
Indian Arts and Crafts Act. As written, this bill, H.R. 725, authorizes 
any Federal law enforcement officer to enforce the act. That is the 
issue. It authorizes any Federal law enforcement officer to authorize 
the act. This would include law enforcement officers who may or may not 
have expertise in dealing with tribes, with artists, counterfeit art or 
crafts.
  So I certainly hope that the President takes appropriate steps to 
delegate this overly broad law enforcement authority only to the agency 
or the agencies that have the funding, manpower, time, and expertise to 
enforce this important but somewhat complex area of law. It would be 
nice if Congress were to actually take that responsibility to 
ourselves. Indeed, the very goal of stopping this illegally 
counterfeited Indian art should not be turned over to law enforcement 
agencies who are strained with other duties, other kinds of 
investigation of crime, acts of terrorism, fraud, or any other kind of 
scheme that takes place.
  Finally, in addition to the fact that this has not been specified 
where it should be, I do want to note that there is a largely identical 
bill, sponsored by the Senator from Arizona, that is in the House. If 
we had taken up that bill today, it could probably be signed into law 
this particular week. I have no idea why we did not take up the Senate 
bill rather than pushing this bill forward, and for whatever reason it 
is. If, indeed, it is simply because it's a Senator's bill, that may be 
good enough for me. But if there are other concepts that may be there, 
there are still questions as to why we are not passing Senate Bill 151 
rather than this one. However, by passing H.R. 725 today, we are simply 
delaying the enactment of this particular bill.
  So once again, I think we missed the opportunity of trying to narrow 
in our particular focus on the enforcement powers, and there are still 
some questions on why this bill is taking precedence over others that 
may speed up the actual date of enactment of this, but with the 
substance of the bill, I am in support.
  I reserve the balance of my time.
  Ms. BORDALLO. Mr. Speaker, I yield myself such time as I may consume.
  In 1935, Congress enacted legislation to establish the Indian Arts 
and Crafts Board. The Indian Arts and Crafts Board, an agency within 
the U.S. Department of the Interior, is responsible for promoting the 
development of American Indian and Alaska Native arts and crafts, 
improving the economic status of the members of the Indian tribes, and 
helping to develop and expand marketing opportunities for arts and 
crafts produced by the American Indians and Alaska Natives.
  The 1935 legislation adopted criminal penalties for selling goods 
with the

[[Page 189]]

 misrepresentation that they were Indian produced. This provision, 
currently located in section 1159 of title 18, U.S. Code, set fines not 
to exceed $500 or imprisonment not to exceed 6 months or both. Although 
this law was in effect for many years, it provided no meaningful 
deterrent to those who misrepresented imitation arts and crafts as 
Indian produced. In addition, willful intent was required to be proved. 
Therefore, very little enforcement took place.
  So H.R. 725 seeks to address this continuing problem by strengthening 
the penalties associated with misrepresentation of Indian-produced 
goods and by empowering Federal, tribal, and local authorities to 
undertake investigations and enforcement. A Senate companion bill, S. 
151, passed the Senate on July 24, 2009.
  Mr. Speaker, I reserve the balance of my time.
  Mr. BISHOP of Utah. Mr. Speaker, I appreciate the very complete and 
thorough analysis that the gentlelady from Guam did on this particular 
bill. It was well done.
  I will ask at this time if the gentlelady from Guam has any more 
speakers for this particular bill.
  Ms. BORDALLO. Mr. Speaker, we do not have any additional speakers.
  Mr. BISHOP of Utah. Sadly, neither do I. So at this time, I will 
simply go forward and say that we still support it. We still think this 
bill could have been done better. We are still very curious on why the 
Senate bill was not being pushed forward, but we support the purpose 
and the goals of this particular piece of legislation, and we will be 
very happy to support it here on the floor as well.
  I yield back the balance of my time.
  Ms. RICHARDSON. Mr. Speaker, as a member of the Native American 
Caucus, I rise today in strong support of H.R. 725, the Indian Arts and 
Crafts Amendments Act of 2009, which will safeguard an industry 
critical to the Native American economy and small businesses.
  First, I would like to acknowledge Speaker Pelosi, Majority Leader 
Hoyer, and Chairman Rahall for their leadership in bringing this 
important bill to the floor. I would also like to thank my colleague 
Congressman Pastor, the author of this legislation, who worked so hard 
to help such an underserved community protect their economic 
livelihood.
  Mr. Speaker, H.R. 725, the Indian Arts and Crafts Amendments Act of 
2009 amends the Indian Arts and Crafts Act of 1990 to authorize any 
federal law enforcement officer to conduct an investigation of an 
offense involving the sale of any good that is misrepresented as an 
Indian produced good or product. H.R. 725 authorizes the Indian Arts 
and Crafts Board to refer offenses to any federal law enforcement 
officer for investigation. In addition, this bill proposes new 
penalties for goods offered or displayed for sale or sold for less than 
$1,000 at a $25,000 fine, a 1-year imprisonment, or both.
  In California, the State I represent, there are over one hundred 
Native American tribes, many of varying levels of economic success. 
Misrepresentation of products is one of the biggest problems facing the 
Native American art industry and market. Not only does the industry 
have to compete with the larger market, but Native Americans must 
compete with those who copy and counterfeit their work. Income from a 
single artist is often the sole source of support for their family, as 
well as being a source of strength and pride that reinforces cultures 
and traditions within communities. Therefore, as a long time friend and 
supporter of the Native American community, I am so pleased to champion 
a bill such as H.R. 725, which protects the unique economic 
opportunities of this community.
  In conclusion, Mr. Speaker, I support this bill because it protects 
an important industry in the areas and populations that needs 
assistance. The communities benefiting from H.R. 725 represent some of 
the most traditionally disadvantaged, isolated, and underserved 
populations in America. I am proud to work with my colleagues to ensure 
that Native Americans receive full protection of their most viable 
industry.
  Mr. Speaker, I urge my colleagues to join me in supporting H.R. 725.
  Ms. BORDALLO. Mr. Speaker, I again urge Members to support the bill, 
and I yield back the balance of my time.
  The SPEAKER pro tempore. The question is on the motion offered by the 
gentlewoman from Guam (Ms. Bordallo) that the House suspend the rules 
and pass the bill, H.R. 725, as amended.
  The question was taken; and (two-thirds being in the affirmative) the 
rules were suspended and the bill, as amended, was passed.
  A motion to reconsider was laid on the table.

                          ____________________