[House Report 104-777]
[From the U.S. Government Publishing Office]



104th Congress                                                   Report
                        HOUSE OF REPRESENTATIVES

 2d Session                                                     104-777
_______________________________________________________________________


 
     TORRES-MARTINEZ DESERT CAHUILLA INDIANS CLAIMS SETTLEMENT ACT
                                _______
                                

 September 5, 1996.--Committed to the Committee of the Whole House on 
            the State of the Union and ordered to be printed

_______________________________________________________________________


  Mr. Young of Alaska, from the Committee on Resources, submitted the 
                               following

                              R E P O R T

                        [To accompany H.R. 3640]

      [Including cost estimate of the Congressional Budget Office]

  The Committee on Resources, to whom was referred the bill 
(H.R. 3640) to provide for the settlement of issues and claims 
related to the trust lands of the Torres-Martinez Desert 
Cahuilla Indians, and for other purposes, having considered the 
same, report favorably thereon with an amendment and recommend 
that the bill as amended do pass.
  The amendment is as follows:
  Strike out all after the enacting clause and insert in lieu 
thereof the following:

SECTION 1. SHORT TITLE.

  This Act may be cited as the ``Torres-Martinez Desert Cahuilla 
Indians Claims Settlement Act''.

SEC. 2. CONGRESSIONAL FINDINGS AND PURPOSE.

  (a) Findings.--The Congress finds and declares that:
          (1) In 1876, the Torres-Martinez Indian Reservation was 
        created, reserving a single, 640-acre section of land in the 
        Coachella Valley, California, north of the Salton Sink. The 
        Reservation was expanded in 1891 by Executive Order, pursuant 
        to the Mission Indian Relief Act of 1891, adding about 12,000 
        acres to the original 640-acre reservation.
          (2) Between 1905 and 1907, flood waters of the Colorado River 
        filled the Salton Sink, creating the Salton Sea, inundating 
        approximately 2,000 acres of the 1891 reservation lands.
          (3) In 1909 an additional 12,000 acres of land, 9,000 of 
        which were then submerged under the Salton Sea, were added to 
        the reservation under a Secretarial Order issued pursuant to a 
        1907 amendment of the Mission Indian Relief Act. Due to 
        receding water levels in the Salton Sea through the process of 
        evaporation, at the time of the 1909 enlargement of the 
        reservation, there were some expectations that the Salton Sea 
        would recede within a period of 25 years.
          (4) Through the present day, the majority of the lands added 
        to the reservation in 1909 remain inundated due in part to the 
        flowage of natural runoff and drainage water from the 
        irrigation systems of the Imperial, Coachella, and Mexicali 
        Valleys into the Salton Sea.
          (5) In addition to those lands that are inundated, there are 
        also tribal and individual Indian lands located on the 
        perimeter of the Salton Sea that are not currently irrigable 
        due to lack of proper drainage.
          (6) In 1982, the United States brought an action in trespass 
        entitled ``United States of America, in its own right and on 
        behalf of Torres-Martinez Band of Mission Indians and the 
        Allottees therein v. The Imperial Irrigation District and 
        Coachella Valley Water District'', Case No. 82-1790 K (M) 
        (hereafter in this section referred to as the ``U.S. Suit'') on 
        behalf of the Torres-Martinez Indian Tribe and affected Indian 
        allottees against the two water districts seeking damages 
        related to the inundation of tribal- and allottee-owned lands 
        and injunctive relief to prevent future discharge of water on 
        such lands.
          (7) On August 20, 1992, the Federal District Court for the 
        Southern District of California entered a judgment in the U.S. 
        Suit requiring the Coachella Valley Water District to pay 
        $212,908.41 in past and future damages and the Imperial 
        Irrigation District to pay $2,795,694.33 in past and future 
        damages in lieu of the United States' request for a permanent 
        injunction against continued flooding of the submerged lands.
          (8) The United States, the Coachella Valley Water District, 
        and the Imperial Irrigation District have filed notices of 
        appeal with the United States Court of Appeals for the Ninth 
        Circuit from the district court's judgment in the U.S. Suit 
        (Numbers 93-55389, 93-55398, and 93-55402), and the Tribe has 
        filed a notice of appeal from the district court's denial of 
        its motion to intervene as a matter of right (No. 92-55129).
          (9) The Court of Appeals for the Ninth Circuit has stayed 
        further action on the appeals pending the outcome of settlement 
        negotiations.
          (10) In 1991, the Tribe brought its own lawsuit, Torres-
        Martinez Desert Cahuilla Indians, et al., v. Imperial 
        Irrigation District, et al., Case No. 91-1670 J (LSP) 
        (hereafter in this section referred to as the ``Indian Suit'') 
        in the United States District Court, Southern District of 
        California, against the two water districts, and amended the 
        complaint to include as a plaintiff, Mary Resvaloso, in her own 
        right, and as class representative of all other affected Indian 
        allotment owners.
          (11) The Indian Suit has been stayed by the District Court to 
        facilitate settlement negotiations.
  (b) Purpose.--The purpose of this Act is to facilitate and implement 
the settlement agreement negotiated and executed by the parties to the 
U.S. Suit and Indian Suit for the purpose of resolving their 
conflicting claims to their mutual satisfaction and in the public 
interest.

SEC. 3. DEFINITIONS.

  For the purposes of this Act:
          (1) The term ``Tribe'' means the Torres-Martinez Desert 
        Cahuilla Indians, a federally recognized Indian tribe with a 
        reservation located in Riverside and Imperial Counties, 
        California.
          (2) The term ``allottees'' means those individual Tribe 
        members, their successors, heirs, and assigns, who have 
        individual ownership of allotted Indian trust lands within the 
        Torres-Martinez Indian Reservation.
          (3) The term ``Salton Sea'' means the inland body of water 
        located in Riverside and Imperial counties which serves as a 
        drainage reservoir for water from precipitation, natural 
        runoff, irrigation return flows, wastewater, floods, and other 
        inflow from within its watershed area.
          (4) The term ``Settlement Agreement'' means the Agreement of 
        Compromise and Settlement Concerning Claims to Lands of the 
        United States Within and on the Perimeter of the Salton Sea 
        Drainage Reservoir Held in Trust for the Torres-Martinez 
        Indians executed on June 18, 1996.
          (5) The term ``Secretary'' means the Secretary of the 
        Interior.
          (6) The term ``permanent flowage easement'' means the 
        perpetual right by the water districts to use the described 
        lands in the Salton Sink within and below the minus 220-foot 
        contour as a drainage reservoir to receive and store water from 
        their respective water and drainage systems, including flood 
        water, return flows from irrigation, tail water, leach water, 
        operational spills and any other water which overflows and 
        floods such lands, originating from lands within such water 
        districts.

SEC. 4. RATIFICATION OF SETTLEMENT AGREEMENT.

  The United States hereby approves, ratifies, and confirms the 
Settlement Agreement.

SEC. 5. SETTLEMENT FUNDS.

  (a) Establishment of Tribal and Allottees Settlement Trust Funds 
Accounts.--
          (1) In general.--There are established in the Treasury of the 
        United States three settlement trust fund accounts to be known 
        as the ``Torres-Martinez Settlement Trust Funds Account'', the 
        ``Torres-Martinez Allottees Settlement Account I'', and the 
        ``Torres-Martinez Allottees Settlement Account II'', 
        respectively.
          (2) Availability.--Amounts held in the Torres-Martinez 
        Settlement Trust Funds Account, the Torres-Martinez Allottees 
        Settlement Account I, and the Torres-Martinez Allottees 
        Settlement Account II shall be available to the Secretary for 
        distribution to the Tribe and affected allottees in accordance 
        with subsection (c).
  (b) Contributions to the Settlement Trust Funds.--
          (1) In general.--Amounts paid to the Secretary for deposit 
        into the trust fund accounts established by subsection (a) 
        shall be allocated among and deposited in the trust accounts in 
        the amounts determined by the tribal-allottee allocation 
        provisions of the Settlement Agreement.
          (2) Cash payments by coachella valley water district.--Within 
        the time, in the manner, and upon the conditions specified in 
        the Settlement Agreement, the Coachella Valley Water District 
        shall pay the sum of $337,908.41 to the United States for the 
        benefit of the Tribe and any affected allottees.
          (3) Cash payments by imperial irrigation district.--Within 
        the time, in the manner, and upon the conditions specified in 
        the Settlement Agreement, the Imperial Irrigation District 
        shall pay the sum of $3,670,694.33 to the United States for the 
        benefit of the Tribe and any affected allottees.
          (4) Cash payments by the united states.--Within the time and 
        upon the conditions specified in the Settlement Agreement, the 
        United States shall pay into the three separate tribal and 
        allottee trust fund accounts the total sum of $10,200,000, of 
        which sum--
                  (A) $4,200,000 shall be provided from moneys 
                appropriated by Congress under section 1304 of title 
                31, United States Code, the conditions of which are 
                deemed to have been met, including those of section 
                2414 of title 28, United States Code; and
                  (B) $6,000,000 shall be provided from moneys 
                appropriated by Congress for this specific purpose to 
                the Secretary.
          (5) Additional payments.--In the event that any of the sums 
        described in paragraphs (2) or (3) are not timely paid by the 
        Coachella Valley Water District or the Imperial Irrigation 
        District, as the case may be, the delinquent payor shall pay an 
        additional sum equal to 10 percent interest annually on the 
        amount outstanding daily, compounded yearly on December 31 of 
        each respective year, until all outstanding amounts due have 
        been paid in full.
          (6) Severally liable for payments.--The Coachella Valley 
        Water District, the Imperial Irrigation District, and the 
        United States shall each be severally liable, but not jointly 
        liable, for its respective obligation to make the payments 
        specified by this subsection.
  (c) Administration of Settlement Trust Funds.--The Secretary shall 
administer and distribute funds held in the Torres-Martinez Settlement 
Trust Funds Account, the Torres-Martinez Allottees Settlement Account 
I, and the Torres-Martinez Allottees Settlement Account II in 
accordance with the terms and conditions of the Settlement Agreement.

SEC. 6. TRUST LAND ACQUISITION AND STATUS.

  (a) Acquisition and Placement of Lands Into Trust.--
          (1) In general.--The Secretary shall convey into trust status 
        lands purchased or otherwise acquired by the Tribe within the 
        areas described in paragraphs (2) and (3) in an amount not to 
        exceed 11,800 acres in accordance with the terms, conditions, 
        criteria, and procedures set forth in the Settlement Agreement 
        and this Act. Subject to such terms, conditions, criteria, and 
        procedures, all lands purchased or otherwise acquired by the 
        Tribe and conveyed into trust status for the benefit of the 
        Tribe pursuant to the Settlement Agreement and this Act shall 
        be considered as if such lands were so acquired in trust status 
        in 1909 except as (i) to water rights as provided in subsection 
        (c), and (ii) to valid rights existing at the time of 
        acquisition pursuant to this Act.
          (2) Primary acquisition area.--(A) The primary area within 
        which lands may be acquired pursuant to paragraph (1) are those 
        certain lands located in the Primary Acquisition Area, as 
        defined in the Settlement Agreement. The amount of acreage that 
        may be acquired from such area is 11,800 acres less the number 
        of acres acquired and conveyed into trust by reason of 
        paragraph (3).
          (B) Lands may not be acquired under this paragraph if by 
        majority vote of the governing body of the city within whose 
        incorporated boundaries (as such boundaries exist on the date 
        of the Settlement Agreement) objects to the Tribe's request to 
        convey such lands into trust and notifies the Secretary of such 
        objection in writing within 60 days of receiving a copy of the 
        Tribe's request in accordance with the Settlement Agreement.
          (3) Secondary acquisition area.--
                  (A) Not more than 640 acres of land may be acquired 
                pursuant to paragraph (1) from those certain lands 
                located in the Secondary Acquisition Area, as defined 
                in the Settlement Agreement.
                  (B) Lands referred to in subparagraph (A) may not be 
                acquired pursuant to paragraph (1) if by majority 
                vote--
                          (i) the governing body of the city whose 
                        incorporated boundaries the subject lands are 
                        situated within, or
                          (ii) the governing body of Riverside County, 
                        California, in the event that such lands are 
                        located within an unincorporated area,

                formally objects to the Tribe's request to convey the 
                subject lands into trust and notifies the Secretary of 
                such objection in writing within 60 days of receiving a 
                copy of the Tribe's request in accordance with the 
                Settlement Agreement.
  (b) Restrictions on Gaming.--The Tribe shall have the right to 
conduct gaming on only one site within the lands acquired pursuant to 
subsection (a)(1) as more particularly provided in the Settlement 
Agreement.
  (c) Water Rights.--All lands acquired by the Tribe under subsection 
(a) shall--
          (1) be subject to all valid water rights existing at the time 
        of tribal acquisition, including (but not limited to) all 
        rights under any permit or license issued under the laws of the 
        State of California to commence an appropriation of water, to 
        appropriate water, or to increase the amount of water 
        appropriated;
          (2) be subject to the paramount rights of any person who at 
        any time recharges or stores water in a ground water basin to 
        recapture or recover the recharged or stored water or to 
        authorize others to recapture or recover the recharged or 
        stored water; and
          (3) continue to enjoy all valid water rights appurtenant to 
        the land existing immediately prior to the time of tribal 
        acquisition.

SEC. 7. PERMANENT FLOWAGE EASEMENTS.

  (a) Conveyance of Easement to Coachella Valley Water District.--
          (1) Tribal interest.--The United States, in its capacity as 
        trustee for the Tribe, as well as for any affected Indian 
        allotment owners, and their successors and assigns, and the 
        Tribe in its own right and that of its successors and assigns, 
        shall convey to the Coachella Valley Water District a permanent 
        flowage easement as to all Indian trust lands (approximately 
        11,800 acres) located within and below the minus 220-foot 
        contour of the Salton Sink, in accordance with the terms and 
        conditions of the Settlement Agreement.
          (2) United states interest.--The United States, in its own 
        right shall, notwithstanding any prior or present reservation 
        or withdrawal of land of any kind, convey to Coachella Valley 
        Water District a permanent flowage easement as to all Federal 
        lands (approximately 110,000 acres) located within and below 
        the minus 220-foot contour of the Salton Sink, in accordance 
        with the terms and conditions of the Settlement Agreement.
  (b) Conveyance of Easement to Imperial Irrigation District.--
          (1) Tribal interest.--The United States, in its capacity as 
        trustee for the Tribe, as well as for any affected Indian 
        allotment owners, and their successors and assigns, and the 
        Tribe in its own right and that of its successors and assigns, 
        shall grant and convey to the Imperial Irrigation District a 
        permanent flowage easement as to all Indian trust lands 
        (approximately 11,800 acres) located within and below the minus 
        220-foot contour of the Salton Sink, in accordance with the 
        terms and conditions of the Settlement Agreement.
          (2) United states.--The United States, in its own right 
        shall, notwithstanding any prior or present reservation or 
        withdrawal of land of any kind, grant and convey to the 
        Imperial Irrigation District a permanent flowage easement as to 
        all Federal lands (approximately 110,000 acres) located within 
        and below the minus 220-foot contour of the Salton Sink, in 
        accordance with the terms and conditions of the Settlement 
        Agreement.

SEC. 8. SATISFACTION OF CLAIMS, WAIVERS, AND RELEASES.

  (a) Satisfaction of Claims.--The benefits available to the Tribe and 
the allottees under the terms and conditions of the Settlement 
Agreement and the provisions of this Act shall constitute full and 
complete satisfaction of the claims by the Tribe and the allottees 
arising from or related to the inundation and lack of drainage of 
tribal and allottee lands described in section 2 of this Act and 
further defined in the Settlement Agreement.
  (b) Approval of Waivers and Releases.--The United States hereby 
approves and confirms the releases and waivers required by the 
Settlement Agreement and this Act.

SEC. 9. MISCELLANEOUS PROVISIONS.

  (a) Eligibility for Benefits.--Nothing in this Act or the Settlement 
Agreement shall affect the eligibility of the Tribe or its members for 
any Federal program or diminish the trust responsibility of the United 
States to the Tribe and its members.
  (b) Eligibility for Other Services Not Affected.--No payment pursuant 
to this Act shall result in the reduction or denial of any Federal 
services or programs to the Tribe or to members of the Tribe, to which 
they are entitled or eligible because of their status as a federally 
recognized Indian tribe or member of the Tribe.
  (c) Preservation of Existing Rights.--Except as provided in this Act 
or the Settlement Agreement, any right to which the Tribe is entitled 
under existing law shall not be affected or diminished.
  (d) Amendment of Settlement Agreement.--The Settlement Agreement may 
be amended from time to time in accordance with its terms and 
conditions.

SEC. 10. AUTHORIZATION OF APPROPRIATIONS.

  There are authorized to be appropriated such sums as are necessary to 
carry out this Act.

SEC. 11. EFFECTIVE DATE.

  (a) In General.--Except as provided by subsection (b), this Act shall 
take effect on the date of enactment of this Act.
  (b) Exception.--Sections 4, 5, 6, 7, and 8 shall take effect on the 
date on which the Secretary of the Interior determines the following 
conditions have been met:
          (1) The Tribe agrees to the Settlement Agreement and the 
        provisions of this Act and executes the releases and waivers 
        required by the Settlement Agreement and this Act.
          (2) The Coachella Valley Water District agrees to the 
        Settlement Agreement and to the provisions of this Act.
          (3) The Imperial Irrigation District agrees to the Settlement 
        Agreement and to the provisions of this Act.

                          PURPOSE OF THE BILL

    The purpose of H.R. 3640 is to provide for the settlement 
of issues and claims related to the trust lands of the Torres-
Martinez Desert Cahuilla Indians.

                  BACKGROUND AND NEED FOR LEGISLATION

    H.R. 3640 would settle a land claim made by the Torres-
Martinez Indian tribe against the United States and two 
irrigation districts in California. This legislation would 
ratify an agreement negotiated between the Administration, the 
Tribe, the Coachella Valley Water District (CVWD) and the 
Imperial Irrigation District (IID).
    The settlement agreement reached between the parties 
provides that the Tribe will receive $14 million in 
compensation for its land losses, $4 million to be paid by the 
two water districts (IID and CVWD) and $10 million to be paid 
by the United States government. In addition, pursuant to the 
agreement, the Tribe is given the right to acquire 11,160 acres 
of land within a specified area adjacent to the existing tribal 
lands and 640 acres of land within another specified area near 
but not adjacent to existing Tribal lands.
    Water rights of local communities will not be changed by 
acquisitions by the Tribe pursuant to this settlement 
agreement. According to the agreement, the Tribe must use canal 
water whenever possible and, when necessary, pay groundwater 
replenishment fees. The agreement also grants to the two water 
districts a permanent drainage easement allowing them to drain 
water into the Salton Sea.

                            COMMITTEE ACTION

    H.R. 3640 was introduced on June 13, 1996, by Congressman 
Sonny Bono (R-CA). The bill was referred to the Committee on 
Resources, and within the Committee to the Subcommittee on 
Native American and Insular Affairs. On June 19, 1996, the 
Subcommittee held a hearing on H.R. 3640, where the 
Administration testified in favor of H.R. 3640. On June 19, 
1996, the Subcommittee met to mark up H.R. 3640. The bill was 
ordered favorably reported to the Full Committee by voice vote 
without amendment.
    On August 1, 1996, the Full Resources Committee met to 
consider H.R. 3640. An en bloc technical amendment was offered 
by Congressman Don Young (R-AK). The en bloc amendment was 
offered to insure that H.R. 3640 does not abrogate water rights 
and other legal rights when land is taken into trust, to make 
clear that it is not the intent of the settlement agreement to 
impede localities from entering into legally binding 
arrangements with Tribes, and to eliminate a potential 
misreading of the bill to give the Torres-Martinez Tribe 
certain rights not afforded to other tribes. The amendment was 
adopted by voice vote. A technical amendment to change the 
incorrect reference to the north end of the Salton Sink on page 
2 and to insert the date, on page 6, on which all seven 
signatures were obtained for the Settlement Agreement defined 
in the bill was offered by Congressman Elton Gallegly (R-CA), 
and adopted by voice vote. The bill as amended was then ordered 
favorably reported to the House of Representatives, in the 
presence of a quorum.

                      SECTION-BY-SECTION ANALYSIS

Section 1. Short title

    This Act may be cited as the ``Torres-Martinez Desert 
Cahuilla Indians Claims Settlement Act''.

Section 2. Congressional findings and purpose

    This section makes various Congressional findings relating 
to the history of the Tribe, the creation of the Salton Sea, 
the inundation of Tribal lands, and the land claim litigation 
which followed.
    The purpose of H.R. 3640, specified in this section, is to 
facilitate and implement a land claim settlement agreement 
negotiated and executed by the various parties to the 
aforementioned litigation which would resolve related land 
claims.

Section 3. Definitions

    This section provides various definitions for the purposes 
of this Act.

Section 4. Ratification of settlement agreement

    This section provides that this Act approves, ratifies, and 
confirms the land claim settlement agreement referred to in 
Section 2.

Section 5. Settlement funds

    This section establishes three land claim settlement trust 
funds in the United States Treasury which shall be available to 
the Secretary of the Interior for distribution to the Tribe and 
to tribal allottees pursuant to the terms and conditions of the 
settlement agreement.
    This section also provides the amounts to be paid by 
certain parties to the United States for deposit into the 
aforementioned trust fund accounts. Interest shall be paid in 
those instances where payments are not timely.

Section 6. Trust land acquisition and status

    This section provides that the Secretary of the Interior 
shall take land into trust acquired by the Tribe from within 
two acquisition areas which are defined in the settlement 
agreement. Those lands acquired shall be subject to all valid 
and existing water rights.

Section 7. Permanent flowage easements

    This provision provides that the United States and the 
Tribe shall convey permanent flowage easements to all Indian 
trust lands and all Federal lands, located below the minus 220-
foot contour of the Salton Sink, to the Coachella Valley Water 
District and the Imperial Irrigation District.

Section 8. Satisfaction of claims, waivers, and releases

    This section provides that the benefits provided by this 
Act shall constitute full and complete satisfaction to the 
Tribe and allottees arising from the land claims defined in the 
settlement agreement. It also provides that the United States 
confirms the releases and waivers required by the settlement 
agreement.

Section 9. Miscellaneous provisions

    This provision provides that this Act shall not reduce, 
deny, diminish, or otherwise affect certain Tribal rights.

Section 10. Authorization of appropriations

    This provision authorizes such sums as are necessary to 
carry out this Act.

Section 11. Effective date

    This section provides that all provision of this Act shall 
take effect on the date of enactment of this Act except certain 
sections which shall take effect on the date on which the 
Secretary of the Interior determines that certain conditions 
have been met.

            COMMITTEE OVERSIGHT FINDINGS AND RECOMMENDATIONS

    With respect to the requirements of clause 2(l)(3) of rule 
XI of the Rules of the House of Representatives, and clause 
2(b)(1) of rule X of the Rules of the House of Representatives, 
the Committee on Resources' oversight findings and 
recommendations are reflected in the body of this report.

                     INFLATIONARY IMPACT STATEMENT

    Pursuant to clause 2(l)(4) of rule XI of the Rules of the 
House of Representatives, the Committee estimates that the 
enactment of H.R. 3640 will have no significant inflationary 
impact on prices and costs in the operation of the national 
economy.

                        COST OF THE LEGISLATION

    Clause 7(a) of rule XIII of the Rules of the House of 
Representatives requires an estimate and a comparison by the 
Committee of the costs which would be incurred in carrying out 
H.R. 3640. However, clause 7(d) of that rule provides that this 
requirement does not apply when the Committee has included in 
its report a timely submitted cost estimate of the bill 
prepared by the Director of the Congressional Budget Office 
under section 403 of the Congressional Budget Act of 1974.

                     compliance with house rule xi

    1. With respect to the requirement of clause 2(l)(3)(B) of 
rule XI of the Rules of the House of Representatives and 
section 308(a) of the Congressional Budget Act of 1974, H.R. 
3640 does not contain any new budget authority, spending 
authority, credit authority, or an increase or decrease in 
revenues or tax expenditures.
    2. With respect to the requirement of clause 2(l)(3)(D) of 
rule XI of the Rules of the House of Representatives, the 
Committee has received no report of oversight findings and 
recommendations from the Committee on Government Reform and 
Oversight on the subject of H.R. 3640.
    3. With respect to the requirement of clause 2(l)(3)(C) of 
rule XI of the Rules of the House of Representatives and 
section 403 of the Congressional Budget Act of 1974, the 
Committee has received the following cost estimate for H.R. 
3640 from the Director of the Congressional Budget Office.

                                     U.S. Congress,
                               Congressional Budget Office,
                                   Washington, DC, August 19, 1996.
Hon. Don Young,
Chairman, Committee on Resources,
House of Representatives, Washington, DC.
    Dear Mr. Chairman: The Congressional Budget Office has 
prepared the enclosed cost estimate for H.R. 3640, the Torres-
Martinez Desert Cahuilla Indians Claims Settlement Act.
    Enacting H.R. 3640 would not affect direct spending or 
receipts. Therefore, pay-as-you-go procedures would not apply 
to the bill.
    If you wish further details on this estimate, we will be 
pleased to provide them.
            Sincerely,
                                            ------  ------,
                                   (For June E. O'Neill, Director).
    Enclosure.

               congressional budget office cost estimate

    1. Bill number: H.R. 3640.
    2. Bill title: Torres-Martinez Desert Cahuilla Indians 
Claims Settlement Act.
    3. Bill status: As ordered reported by the House Committee 
on Resources on August 1, 1996.
    4. Bill purpose: H.R. 3640 would ratify a settlement 
agreement entered into by the Department of Justice, the 
Imperial Irrigation District, the Coachella Valley Water 
District, and the Torres-Martinez Cahuilla Indian Tribe. The 
settlement agreement is designed to provide compensation to the 
tribe for the flooding of reservation lands and relief against 
further inundation of those lands. According to the agreement, 
the tribe would receive monetary compensation from the United 
States and the two water districts. In addition, the Interior 
Department would take into trust up to 11,800 acres of land 
acquired by the tribe, and the tribe would be permitted to 
conduct gaming on lands taken into trust pursuant to the 
agreement.
    5. Estimated cost to the Federal Government: The bill would 
authorize an appropriation of $6 million to the tribe and its 
member landowners. Assuming enactment by the end of fiscal year 
1996 and appropriation of the funds for fiscal year 1997, CBO 
estimates that the tribe would spend out the money over the 
next three years.

                                    [By fiscal year, in millions of dollars]                                    
----------------------------------------------------------------------------------------------------------------
                                                              1997     1998     1999     2000     2001     2002 
----------------------------------------------------------------------------------------------------------------
Spending subject to appropriation:                                                                              
    Authorization level...................................  .......        6  .......  .......  .......  .......
    Estimated outlays.....................................  .......        3        2        1  .......  .......
----------------------------------------------------------------------------------------------------------------

    The costs of this bill fall within budget function 450.
    The tribe also would receive a payment of $4.2 million from 
the Claims and Judgments Fund. This payment would not represent 
a new obligation of the U.S. government, but would simply 
satisfy a commitment already made. That commitment stems from 
court action begun in 1982 and ultimately resolved by the 
settlement agreement negotiated by the parties to two separate 
suits, both of which have been suspended pending the outcome of 
such negotiations. The agreement entered into by the Department 
of Justice, the water districts, and the tribe calls for 
payment by the U.S. government of $4.2 million to the tribe. 
(The agreement also calls for payments by the two water 
districts to the tribe). Because the settlement agreement 
commits the U.S. government to the $4.2 million payment, 
enacting H.R. 3640 would not cause any increase in direct 
spending from the Claims and Judgments Fund.
    6. Basis of estimates: Funds that the tribe would receive 
may be spent on attorney fees, per capita payments, land 
acquisition, and other activities as stipulated by the 
settlement agreement. CBO expects that some of the funds would 
be spent quickly, while other activities such as the purchase 
of land would take longer. As a result, we estimate that about 
one-half of the $6 million would be spent in the year that 
funds are appropriated, with the remainder spread over the 
subsequent two years.
    7. Pay-as-you-go considerations: None.
    8. Estimated impact on State, local, and tribal 
governments: H.R. 3640 contains no intergovernmental mandates 
as defined in the Unfunded Mandates Reform Act of 1995 (Public 
Law 104-4) and would impose no costs on state, local, or tribal 
governments. Any costs resulting from the settlement agreement 
covered by this bill would be incurred voluntarily by state, 
local, and tribal governments as parties to the agreement.
    9. Estimated impact on the private sector: This bill would 
impose no new private-sector mandates as defined in Public Law 
104-4.
    10. Previous CBO estimate: On August 9, 1996, CBO prepared 
a cost estimate for S. 1893, the Torres-Martinez Desert 
Cahuilla Indians Claims Settlement Act, as ordered reported by 
the Senate Committee on Indian Affairs on July 24, 1996. The 
two bills are very similar, and the estimates are identical.
    11. Estimate prepared by--Federal Cost Estimate: Rachel 
Robertson and Lisa Daley; impact on State, Local, and Tribal 
Governments: Marjorie Miller; impact on the Private Sector: Amy 
Downs.
    12. Estimate approved by: Peter Fontaine, for Paul N. Van 
de Water, Assistant Director for Budget Analysis.

                    compliance with public law 104-4

    H.R. 3640 contains no unfunded mandates.

                        changes in existing law

    If enacted, H.R. 3640 would make no changes in existing 
law.