[House Report 105-352]
[From the U.S. Government Publishing Office]



105th Congress                                                   Report
                        HOUSE OF REPRESENTATIVES

 1st Session                                                    105-352
_______________________________________________________________________


 
PROVIDING FOR THE DIVISION, USE, AND DISTRIBUTION OF JUDGMENT FUNDS OF 
              THE OTTAWA AND CHIPPEWA INDIANS OF MICHIGAN
                                _______
                                

October 28, 1997.--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. 1604]

      [Including cost estimate of the Congressional Budget Office]

  The Committee on Resources, to whom was referred the bill 
(H.R. 1604) to provide for the division, use, and distribution 
of judgment funds of the Ottawa and Chippewa Indians of 
Michigan pursuant to dockets numbered 18-E, 58, 364, and 18-R 
before the Indian Claims Commission, 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. TABLE OF CONTENTS.

  The table of contents for this Act is as follows:
Sec. 1. Table of contents.
Sec. 2. Findings; purpose.
Sec. 3. Definitions.
Sec. 4. Division of funds.
Sec. 5. Development of tribal plans for use or distribution of funds.
Sec. 6. Preparation of judgment distribution roll of descendants.
Sec. 7. Plan for use and distribution of Bay Mills Indian Community 
funds.
Sec. 8. Plan for use of Sault Ste. Marie tribe of Chippewa Indians of 
Michigan funds.
Sec. 9. Payment of per capita shares.
Sec. 10. Newly recognized or affirmed tribes.
Sec. 11. Treatment of funds in relation to other laws.
Sec. 12. Treaties not affected.

SEC. 2. FINDINGS; PURPOSE.

  (a) Findings.--Congress finds the following:
          (1) Judgments were rendered in the Indian Claims Commission 
        in dockets numbered 18-E, 58, and 364 in favor of the Ottawa 
        and Chippewa Indians of Michigan and in docket numbered 18-R in 
        favor of the Sault Ste. Marie Tribe of Chippewa Indians.
          (2) The funds Congress appropriated to pay these judgments 
        have been held by the Department of the Interior for the 
        beneficiaries pending a division of the funds among the 
        beneficiaries in a manner acceptable to the tribes and 
        descendency group and pending development of plans for the use 
        and distribution of the respective tribes' share.
          (3) The 1836 treaty negotiations show that the United States 
        concluded negotiations with the Chippewa concerning the cession 
        of the upper peninsula and with the Ottawa with respect to the 
        lower peninsula.
          (4) A number of sites in both areas were used by both the 
        Ottawa and Chippewa Indians. The Ottawa and Chippewa Indians 
        were intermarried and there were villages composed of members 
        of both tribes.
  (b) Purpose.--It is the purpose of this Act to provide for the fair 
and equitable division of the judgment funds among the beneficiaries 
and to provide the opportunity for the tribes to develop plans for the 
use or distribution of their share of the funds.

SEC. 3. DEFINITIONS.

  For purposes of this Act the following definitions apply:
          (1) The term `judgment funds' means funds appropriated in 
        full satisfaction of judgments made in the Indian Claims 
        Commission--
                  (A) reduced by an amount for attorneys fees and 
                litigation expenses; and
                  (B) increased by the amount of any interest accrued 
                with respect to such funds.
          (2) The term ``dockets 18-E and 58 judgment funds'' means 
        judgment funds awarded in dockets numbered 18-E and 58 in favor 
        of the Ottawa and Chippewa Indians of Michigan.
          (3) The term ``docket 364 judgment funds'' means the judgment 
        funds awarded in docket numbered 364 in favor of the Ottawa and 
        Chippewa Indians of Michigan.
          (4) The term ``docket 18-R judgment funds'' means the 
        judgment funds awarded in docket numbered 18-R in favor of the 
        Sault Ste. Marie Tribe of Chippewa Indians.
          (5) The term ``judgment distribution roll of descendants'' 
        means the roll prepared under section 6.
          (6) The term ``Secretary'' means the Secretary of the 
        Interior.

SEC. 4. DIVISION OF FUNDS.

  (a) Docket 18-E and 58 Judgment Funds.--The Secretary shall divide 
the docket 18-E and 58 judgment funds as follows:
          (1) The lesser of 13.5 percent or $9,253,104.47, for 
        individuals on the judgment distribution roll of descendants.
          (2) 34.6 percent to the Sault Ste. Marie Tribe of Chippewa 
        Indians of Michigan and the Bay Mills Indian Community, of 
        which--
                  (A) the lesser of 35 percent of the principal and 
                interest as of December 31, 1996, or $8,313,877 shall 
                be for the Bay Mills Indian Community; and
                  (B) the remaining amount shall be for the Sault Ste. 
                Marie Tribe of Chippewa Indians of Michigan.
          (3) 17.3 percent to the Grand Traverse Band of Ottawa and 
        Chippewa Indians of Michigan.
          (4) 17.3 percent to the Little Traverse Bay Bands of Odawa 
        Indians of Michigan.
          (5) 17.3 percent to the Little River Band of Ottawa Indians 
        of Michigan.
          (6) Any funds remaining after distribution pursuant to 
        paragraphs (1) through (5) shall be divided and distributed to 
        each of the recognized tribes listed in this subsection in an 
        amount which bears the same ratio to the amount so divided and 
        distributed as the distribution of judgment funds pursuant to 
        each of paragraphs (1) through (5) bears to the total 
        distribution under all such paragraphs.
  (b) Docket 364 Judgment Funds.--The Secretary shall divide the docket 
364 judgment funds as follows:
          (1) The lesser of 20 percent or $25,026.79 for individuals on 
        the judgment distribution roll of descendants.
          (2) 32 percent to the Sault Ste. Marie Tribe of Chippewa 
        Indians of Michigan and the Bay Mills Indian Community, of 
        which--
                  (A) 35 percent shall be for the Bay Mills Indian 
                Community; and
                  (B) the remaining amount shall be for the Sault Ste. 
                Marie Tribe of Chippewa Indians of Michigan.
          (3) 16 percent to the Grand Traverse Band of Ottawa and 
        Chippewa Indians of Michigan.
          (4) 16 percent to the Little Traverse Bay Bands of Odawa 
        Indians of Michigan.
          (5) 16 percent to the Little River Band of Ottawa Indians of 
        Michigan.
          (6) Any funds remaining after distribution pursuant to 
        paragraphs (1) through (5) shall be divided and distributed to 
        each of the recognized tribes listed in this subsection in an 
        amount which bears the same ratio to the amount so divided and 
        distributed as the distribution of judgment funds pursuant to 
        each of paragraphs (1) through (5) bears to the total 
        distribution under all such paragraphs.
  (c) Docket 18-R Judgment Funds.--The Secretary shall divide the 
docket 18-R judgment funds as follows:
          (1) 65 percent to the Sault Ste. Marie Tribe of Chippewa 
        Indians of Michigan.
          (2) 35 percent to the Bay Mills Indian Community.
  (d) Amounts for Judgment Distribution Roll of Descendants Held in 
Trust.--Pending distribution under this Act to individuals on the 
judgment distribution roll of descendants prepared under section 6, the 
Secretary shall hold amounts referred to in subsections (a)(1) and 
(b)(1) in trust.

SEC. 5. DEVELOPMENT OF TRIBAL PLANS FOR USE OR DISTRIBUTION OF FUNDS.

  (a) Disbursement of Funds.--(1) The Secretary shall disburse each 
tribe's respective share of the judgment funds described in subsections 
(a) and (b) of section 4 to a tribe specified in subsection (b) of this 
section not later than 30 days after a plan for use and distribution of 
such funds has been approved in accordance with this section. 
Disbursement of a tribe's share shall not be dependent upon approval of 
any other tribe's plan.
  (2) Section 7 shall be the plan for use and distribution of the 
judgment funds described in subsections (a)(2)(A), (b)(2)(A), and 
(c)(2) of section 4. Such plan shall be approved upon the enactment of 
this Act and such funds shall be distributed by the Secretary to the 
Bay Mills Indian Community not later than 90 days after the date of the 
enactment of this Act to be used and distributed in accordance with 
section 7.
  (3) Section 8 shall be the plan for use and distribution of the 
judgment funds described in subsections (a)(2)(B), (b)(2)(A), and 
(c)(1) of section 4. Such plan shall be approved upon the enactment of 
this Act and such funds shall be distributed by the Secretary to the 
Sault Ste. Marie Tribe of Chippewa Indians of Michigan not later than 
90 days after the date of the enactment of this Act to be used and 
distributed in accordance with section 8.
  (b) Eligible Tribes.--The tribes referred to in subsection (a) are 
the Grand Traverse Band of Ottawa and Chippewa Indians of Michigan, the 
Little Traverse Bay Bands of Odawa Indians of Michigan, and the Little 
River Band of Ottawa Indians of Michigan.
  (c) Approval or Comment of Secretary.--
          (1) The tribe shall develop a plan for the use and 
        distribution of its respective share of the judgment funds. The 
        tribe shall hold a hearing or general membership meeting on its 
        proposed plan. The tribe shall submit to the Secretary its plan 
        together with an accompanying resolution of its governing body 
        accepting such plan, a transcript of its hearings or meetings 
        in which the plan was discussed with its general membership, 
        any documents circulated or made available to the membership on 
        the proposed plan, and comments from its membership received on 
        the proposed plan.
          (2) Not later than 90 days after a tribe makes its submission 
        under paragraph (1), the Secretary shall--
                  (A) if the plan complies with the provisions of 
                section 3(b) of the Indian Tribal Judgment Funds Use or 
                Distribution Act (25 U.S.C. 1403(b)), approve the plan; 
                or
                  (B) if the plan does not comply with the provisions 
                of section 3(b) of the Indian Tribal Judgment Funds Use 
                or Distribution Act (25 U.S.C. 1403(b)), return the 
                plan to the tribe with comments advising the tribe why 
                the plan does not comply with such provisions.
  (d) Response by Tribe.--The tribe shall have 60 days after receipt of 
comments under subsection (c)(2), or other time as the tribe and the 
Secretary agree upon, in which to respond to such comments and make 
such response by submitting a revised plan to the Secretary.
  (e) Submission to Congress.--(1) The Secretary shall, within 45 days 
after receiving the governing body's comments under subsection (d), 
submit a plan to Congress in accordance with the provisions of section 
3(b) of the Indian Tribal Judgment Funds Use or Distribution Act (25 
U.S.C. 1403(b)). If the tribe does not submit a response pursuant to 
subsection (d), the Secretary shall, not later than 45 days after the 
end of the response time for such a response, submit a plan to Congress 
in accordance with the provisions of section 3(b) of the Indian Tribal 
Judgment Funds Use or Distribution Act (25 U.S.C. 1403(b)).
  (2) If a tribe does not submit a plan to the Secretary within 8 years 
of the date of enactment of this Act, the Secretary shall approve a 
plan which complies with the provisions of section 3(b) of the Indian 
Tribal Judgment Funds Use or Distribution Act (25 U.S.C. 1403(b)).
  (f) Governing Law After Approval by Secretary.--Once approved by the 
Secretary under this Act, the effective date of the plan and other 
requisite action, if any, is determined by the provisions of section 5 
of the Indian Tribal Judgment Funds Use or Distribution Act (25 U.S.C. 
1405).
  (g) Hearings Not Required.--Notwithstanding section 3 and section 4 
of the Indian Tribal Judgment Funds Use or Distribution Act (25 U.S.C. 
1403 and 25 U.S.C. 1404), the Secretary shall not be required to hold 
hearings or submit transcripts of any hearings held previously 
concerning the Indian judgments which are related to the judgment 
funds. The Secretary's submission of the plan pursuant to this Act 
shall comply with section 4 of the Indian Tribal Judgment Funds Use or 
Distribution Act (25 U.S.C. 1404).

SEC. 6. PREPARATION OF JUDGMENT DISTRIBUTION ROLL OF DESCENDANTS.

  (a) Preparation.--Not later than 9 years after the date of the 
enactment of this Act, the Secretary shall prepare, in accordance with 
parts 61 and 62 of title 25, Code of Federal Regulations, a judgment 
distribution roll of all citizens of the United States who--
          (1) were born on or before the date of enactment of this Act;
          (2) were living on the date of the enactment of this Act;
          (3) are of at least one-quarter Michigan Ottawa or Chippewa 
        Indian blood, or a combination thereof;
          (4) are not members of the tribal organizations listed in 
        section 4;
          (5) are lineal descendants whose Michigan Ottawa or Chippewa 
        ancestry is derived from at least one of the groups described 
        in subsection (d); and
          (6) are not described in subsection (e).
  (b) Applications.--Applications for inclusion on the judgment 
distribution roll of descendants must be filed with the superintendent, 
Michigan agency, Bureau of Indian Affairs, Sault Ste. Marie, Michigan, 
not later than 1 year after the date of enactment of this Act.
  (c) Appeals.--Appeals arising under this section shall be handled in 
accordance with parts 61 and 62 of title 25, Code of Federal 
Regulations.
  (d) Groups.--The groups referred to in subsection (a)(5) are--
          (1) the Ottawa Bands of Grand River, Traverse, Grand 
        Traverse, Little Traverse, Maskigo, or L'Arbre Croche;
          (2) the Chippewa Tribes of Sault Ste. Marie, Michilmackinac, 
        or Cheboigan; and
          (3) any Ottawa or Chippewa subdivisions of any groups 
        referred to in paragraph (1) or (2).
  (e) Ineligible Individuals.--An individual is not eligible under this 
section, if that individual--
          (1) received benefits pursuant to the Secretarial Plan 
        effective July 17, 1983, for the use and distribution of 
        Potawatomi judgment funds;
          (2) received benefits pursuant to the Secretarial Plan 
        effective November 12, 1977, for the use and distribution of 
        Saginaw Chippewa judgment funds;
          (3) is a member of the Keweenaw Bay Chippewa Indian Community 
        of Michigan on the date of the enactment of this Act; or
          (4) is a member of the Lac Vieux Desert Band of Lake Superior 
        Chippewa Indians on the date of the enactment of this Act.
  (f) Use of Horace B. Durant Roll.--In preparing the judgment 
distribution roll of descendants under this section, the Secretary 
shall refer to the Horace B. Durant Roll, approved February 18, 1910, 
of the Ottawa and Chippewa Tribe of Michigan, as qualified and 
corrected by other rolls and records acceptable to the Secretary, 
including the Durant Field Notes of 1908-1909 and the Annuity Payroll 
of the Ottawa and Chippewa Tribe of Michigan approved May 17, 1910. The 
Secretary may employ the services of the descendant group enrollment 
review committees.

SEC. 7. PLAN FOR USE AND DISTRIBUTION OF BAY MILLS INDIAN COMMUNITY 
                    FUNDS.

  (a) Tribal Land Trust.--(1) The Executive Council of the Bay Mills 
Indian Community shall establish a nonexpendable trust to be known as 
the ``Land Trust''. Not later than 60 days after receipt of the funds 
distributed to the Bay Mills Indian Community pursuant to this Act, the 
Executive Council of the Bay Mills Indian Community shall deposit 20 
percent of the share of the Bay Mills Indian Community into the Land 
Trust.
  (2) The Executive Council shall be the trustee of the Land Trust and 
shall administer the Land Trust in accordance with this section. The 
Executive Council may retain or hire a professional trust manager and 
may pay the prevailing market rate for such services. Such payment for 
services shall be made from the current income accounts of the trust 
and charged against earnings of the current fiscal year.
  (3) The earnings generated by the Land Trust shall be used annually 
and exclusively for the consolidation and enhancement of tribal 
landholdings through purchase or exchange. Any land so acquired shall 
be held in trust by the United States for the Bay Mills Indian 
Community.
  (4) The principal of the Land Trust shall not be expended for any 
purpose, including but not limited to, per capita payment to members of 
the Bay Mills Indian Community.
  (5) The Land Trust shall be maintained as a separate account, which 
shall be audited at least once during each fiscal year by a certified 
public accountant who shall prepare a report on the results of such 
audit. Such report shall be a public document, and shall be available 
for inspection by any member of the Bay Mills Indian Community.
  (6) Notwithstanding any other provision of law, the approval of the 
Secretary of any payment from the Land Trust shall not be required and 
the Secretary shall have no trust responsibility for the investment, 
supervision, administration, or expenditure of funds from the Land 
Trust.
  (b) Land Claims Distribution Trust.--(1) The Executive Council of the 
Bay Mills Indian Community shall establish a nonexpendable to be known 
as the ``Land Claims Distribution Trust Fund''. Not later than 60 days 
after receipt of the funds distributed to the Bay Mills Indian 
Community pursuant to this Act, the Executive Council of the Bay Mills 
Indian Community shall deposit into the Land Claims Distribution Trust 
Fund the principal funds which shall consist of--
          (A) amounts remaining of the funds distributed to the Bay 
        Mills Indian Community after distribution pursuant to 
        subsections (a) and (c);
          (B) 10 percent of the annul earnings generated by the Land 
        Claims Distribution Trust Fund; and
          (C) such other funds which the Executive Council chooses to 
        add to the Land Claims Distribution Trust Fund.
  (2) The Executive Council shall be the trustee of the Land Claims 
Distribution Trust Fund and shall administer the Land Claims 
Distribution Trust Fund in accordance with this section. The Executive 
Council may retain or hire a professional trust manager and may pay for 
said services the prevailing market rate. Such payment for services 
shall be made from the current income accounts of the trust and charged 
against earnings of the current fiscal year.
  (3) 90 percent of the annual earnings of the Land Claims Distribution 
Trust fund shall be distributed on October 1 of each year after the 
creation of the trust fund to any person who--
          (A) is enrolled as a member of the Bay Mills Indian Community 
        on the date of the enactment of this Act;
          (B) is alive on the date of the enactment of this Act;
          (C) is at least 55 years of age as of the annual distribution 
        date; and
          (D)(i) has been enrolled as a member of the Bay Mills Indian 
        Community for a minimum of 25 years as of the annual 
        distribution date, or
          (ii) was adopted as a member of the Bay Mills Indian 
        Community on or before June 30, 1996.
  (4) In the event that a member of the Bay Mills Indian Community who 
is eligible for payment under subsection (b)(3), should die after 
preparation of the annual distribution roll and prior to the October 1 
distribution, that individual's share for that year shall be provided 
to the member's heirs at law.
  (5) In the event that a member of the Bay Mills Indian Community who 
is at least 55 years of age and who is eligible for payment under 
subsection (b)(3), shallhave a guardian appointed for said individual, 
such payment shall be made to the guardian.
  (6) Under no circumstances shall any part of the principal of the 
Land Claims Distribution Trust fund be distributed as a per capita 
payment to members of the Bay Mills Indian Community, or used or 
expended for any other purpose by the Executive Council.
  (7) The Land Claims Distribution Trust fund shall be maintained as a 
separate account, which shall be audited at least once during each 
fiscal year by an independent certified public accountant who shall 
prepare a report on the results of such audit. Such report shall be a 
public document, and shall be available for inspection by any member of 
the Bay Mills Indian Community.
  (8) Notwithstanding any other provision of law, the approval of the 
Secretary of any payment from the Land Claims Distribution Trust fund 
shall not be required and the Secretary shall have no trust 
responsibility for the investment, supervision, administration, or 
expenditure of the fund.
  (c) Land Claims Initial Payment.--As compensation to the members of 
the Bay Mills Indian Community for the delay in distribution of the 
judgment fund, payment shall be made by the Executive Council within 30 
days of receipt of the Bay Mills Indian Community's share of the 
judgment fund from the Secretary, as follows:
          (1) The sum of $3,000 to each enrolled member of the Bay 
        Mills Indian Community living on the date of enactment of this 
        legislation, who has attained the age of 55 years, but is less 
        than 62 years of age if that individual was adopted into or a 
        member of the Bay Mills Indian Community on or before June 30, 
        1996.
          (2) The sum of $5,000 to each enrolled member of the Bay 
        Mills Indian Community living on the date of enactment of this 
        legislation, who is between the ages of 62 and 69 years of age 
        if that individual was adopted into or a member of the Bay 
        Mills Indian Community on or before June 30, 1996.
          (3) The sum of $10,000 to each enrolled member of the Bay 
        Mills Indian Community living on the date of enactment of this 
        legislation, who is 70 years of age or older if that individual 
        was adopted into or a member of the Bay Mills Indian Community 
        on or before June 30, 1996.
  (d) Annual Payments From Land Claims Distribution Trust Fund.--The 
Executive Council shall prepare the annual distribution roll and ensure 
its accuracy prior to August 30 of each year prior to distribution. The 
distribution roll shall identify each member of the Bay Mills Indian 
Community who has attained the minimum age and membership duration 
required for distribution eligibility, as specified in subsection 
(b)(3). The number of eligible persons in each age category defined in 
this subsection, multiplied by the number of shares for which the age 
category is entitled, added together for the 3 categories, shall 
constitute the total number of shares to be distributed each year. On 
each October 1, the shares shall be distributed as follows:
          (1) Each member who is at least 55 years of age and less than 
        62 years of age shall receive 1 share.
          (2) Each member who is between the ages of 62 and 69 years 
        shall receive 2 shares.
          (3) Each member who is 70 years of age or older shall receive 
        3 shares.

SEC. 8. PLAN FOR USE OF SAULT STE. MARIE TRIBE OF CHIPPEWA INDIANS OF 
                    MICHIGAN FUNDS.

  (a) Self-Sufficiency Fund.
          (1) The Sault Ste. Marie Tribe of Chippewa Indians of 
        Michigan (referred to in this section as the ``Sault Ste. Marie 
        Tribe''), through its board of directors, shall establish a 
        trust fund for the benefit of the Sault Ste. Marie Tribe which 
        shall be known as the ``Self-Sufficiency Fund''. The principal 
        of the Self-Sufficiency Fund shall consist of--
                  (A) the Sault Ste. Marie Tribe's share of the 
                judgment funds transferred by the Secretary to the 
                board of directors pursuant to subsection (e);
                  (B) such amounts of the interest and other income of 
                the Self-Sufficiency Fund as the board of directors may 
                choose to add to the principal; and
                  (C) any other funds that the board of directors of 
                the Sault Ste. Marie Tribe choose to add to the 
                principal.
          (2) The board of directors shall be the trustee of the Self-
        Sufficiency Fund and shall administer the fund in accordance 
        with the provisions of the section.
  (b) Use of Principal.--
          (1) The principal of the Self-Sufficiency Fund shall be used 
        exclusively for investments or expenditures which the board of 
        directors determines--
                  (A) are reasonably related to--
                          (i) economic development beneficial to the 
                        tribe; or
                          (ii) development of tribal resources; or
                  (B) are otherwise financially beneficial to the tribe 
                and its members.
          (2) At least one-half of the principal of the Self-
        Sufficiency Fund at any given time shall be invested in 
        investment instruments or funds calculated to produce a 
        reasonable rate of return without undue speculation or risk, 
        unless, for good cause shown by the Sault Ste. Marie Tribe, the 
        Secretary determines that a lesser amount may be invested in 
        that manner.
          (3) No portion of the principal of the Self-Sufficiency Fund 
        shall be distributed in the form of per capita payments.
  (c) Use of Self-Sufficiency Fund Income.--The interest and other 
investment income of the Self-Sufficiency Fund shall be distributed--
          (1) as an addition to the principal of the fund;
          (2) as a dividend to tribal members;
          (3) as a per capita payment to some group or category of 
        tribal members designated by the board of directors; or
          (4) for educational, social welfare, health, cultural, or 
        charitable purposes which benefit the members of the Sault Ste. 
        Marie Tribe.
  (d) General Rules and Procedures.--
          (1) The Self-Sufficiency Fund shall be maintained as a 
        separate account.
          (2) The books and records of the Self-Sufficiency Fund shall 
        be audited at least once during each fiscal year by an 
        independent certified public accountant who shall prepare a 
        report on the results of such audit. Such report shall be 
        treated as a public document of the Sault Ste. Marie Tribe and 
        a copy of the report shall be available for inspection by any 
        enrolled member of the Sault Ste. Marie Tribe.
  (e) Transfer of Judgment Funds to Self-Sufficiency Fund.--
          (1) The Secretary shall transfer to the Self-Sufficiency Fund 
        the share of the funds which have been allocated to the Sault 
        Ste. Marie Tribe pursuant to section 4.
          (2) Notwithstanding any other provision of law, after the 
        transfer required by paragraph (1) the approval of the 
        Secretary for any payment or distribution from the principal or 
        income of the Self-Sufficiency Fund shall not be required and 
        the Secretary shall have no trust responsibility for the 
        investment, administration, or expenditure of the principal or 
        income of the Self-Sufficiency Fund.

SEC. 9. PAYMENT OF PER CAPITA SHARES.

  Subject to section 10, the Secretary shall distribute per capita the 
funds described in subsections (a)(1) and (b)(1) of section 4 to the 
individuals listed on the judgment distribution roll of descendants 
prepared pursuant to section 6. Payment of a per capita share of 
funds--
          (1) to which a living, competent adult is entitled under this 
        Act shall be paid directly to that adult;
          (2) to which a deceased individual is entitled under this Act 
        shall be paid to that individual's heirs and legatees upon 
        determination of such heirs and legatees in accordance with 
        regulations prescribed by the Secretary; and
          (3) to which a legally incompetent individual or an 
        individual under 18 years of age is entitled under this Act 
        shall be paid in accordance with such procedures (including the 
        establishment of trusts) as the Secretary determines to be 
        necessary to protect and preserve the interests of that 
        individual.

SEC. 10. NEWLY RECOGNIZED OR AFFIRMED TRIBES.

  (a) Distribution of Funds Allotted for Members of Newly Recognized or 
Affirmed Tribes.--If, after the date of the enactment of this Act and 
before approval by the Secretary of the judgment distribution roll of 
descendants prepared pursuant to section 6, Congress or the Secretary 
recognizes a tribe which includes an individual on the judgment 
distribution roll of descendants, the funds allotted for that 
individual shall be held in trust for the newly recognized or affirmed 
tribe in accordance with the provisions of this section.
  (b) Funds Subject to Plan.--Funds held in trust pursuant to 
subsection (a) shall be subject to a plan that is approved in 
accordance with this Act.
  (c) Determination of Membership in Newly Recognized or Affirmed 
Tribe.--(1) For purposes of this section, if:
          (A) The tribe is acknowledged by the Secretary under part 83 
        of title 25, Code of Federal Regulations, the Secretary shall 
        use the tribe's most recent membership list provided under such 
        part.
          (B) Unless otherwise provided by the statutes which 
        recognizes the tribe, if Congress recognizes a tribe, the 
        Secretary shall use the most recent membership list provided to 
        Congress. If no membership list is provided to Congress, the 
        Secretary shall use the most recent membership list provided 
        with the tribe's petition for acknowledgment under part 83 of 
        title 25, Code of Federal Regulations. If no such list was 
        provided to Congress or under such part, the newly recognized 
        tribe shall submit a membership list to the Secretary before 
        the judgment distribution roll of descendants is approved, or 
        the judgment funds shall be distributed per capita under 
        section 9.
  (2) If a membership list was not provided--
          (A) to the Secretary, the Secretary will use the tribe's most 
        recent membership list provided to the Bureau of Indian Affairs 
        in their petition for Federal acknowledgment filed under part 
        83 of title 25, Code of Federal Regulations, unless otherwise 
        provided in the statute which recognized the tribe;
          (B) to the Bureau of Indian Affairs, the newly recognized or 
        affirmed tribe shall submit a membership list before the 
        judgment distribution roll of descendants is approved by the 
        Secretary, unless otherwise provided in the statute which 
        recognized the tribe; and
          (C) before the judgment distribution roll of descendants is 
        approved, the judgment funds shall be distributed per capita 
        under section 9.
  (d) Notification to Individuals.--The Bureau of Indian Affairs shall 
notify any individual that is listed on the newly recognized or 
affirmed tribe's membership list and that the funds to which the 
individual would be entitled under this Act will be held in trust for 
the individual's newly recognized or affirmed tribe unless, not later 
than 60 days after such notification, the individual informs the Bureau 
of Indian Affairs and the tribe, in writing, that the individual 
relinquishes membership in the newly recognized or affirmed tribe.

SEC. 11. TREATMENT OF FUNDS IN RELATION TO OTHER LAWS.

  The eligibility for or receipt of distributions under this Act by a 
tribe or individual shall not considered as income, resources, or 
otherwise when determining the eligibility for or computation of any 
payment or other benefit to such tribe, individual, or household 
under--
          (1) any financial aid program of the United States, including 
        grants and contracts subject to the Indian Self-Determination 
        Act; or
          (2) any other benefit to which such tribe, household, or 
        individual would otherwise be entitled under any Federal or 
        federally assisted program.

SEC. 12. TREATIES NOT AFFECTED.

  No provision of this Act shall be construed to constitute an 
amendment, modification, or interpretation of any treaty to which a 
tribe mentioned in this Act is a party nor to any right secured to such 
a tribe or to any other tribe by any treaty.

                          PURPOSE OF THE BILL

    The purpose of H.R. 1604 is to provide for the division, 
use, and distribution of judgment funds of the Ottawa and 
Chippewa Indians of Michigan pursuant to dockets numbered 18-E, 
58, 364, and 18-R before the Indian Claims Commission.

                  BACKGROUND AND NEED FOR LEGISLATION

    H.R. 1604 would provide for the division, use, and 
distribution of judgment funds of the Ottawa and Chippewa 
Indians of Michigan awarded in 1971 pursuant to four Indian 
Claims Commission dockets. These judgment funds were 
appropriated by Congress subsequent to the Indian Claims 
Commission award and have since been held in trust by the 
Department of the Interior for the beneficiaries.
    According to a formula included in H.R. 1604, the funds 
would be divided between individuals on a judgment distribution 
roll of descendants (to be created by the Secretary of the 
Interior) and five Federally recognized Michigan tribes. Those 
portions of the funds to be disbursed to each tribe would be 
disbursed after a plan for use and distribution by each tribe 
has been approved by the Secretary of the Interior.
    H.R. 1604 also provides for the creation and operation of a 
land trust and a claims distribution trust fund by the Bay 
Mills Indian Community and provides for the creation and 
operation of a self-sufficiency fund by the Sault Ste. Marie 
Tribe.
    Following the vote of the Committee on Resources on H.R. 
1604 on July 16, 1997, certain issues arose concerning the text 
of the bill as it related to the treatment of certain tribes 
such as the Burt Lake Band, the Grand River Ottawa Band, and 
other descendancy groups. These issues have been resolved to 
the satisfaction of the Tribes and descendancy groups involved 
and the Committee plans to address them with a floor amendment 
to H.R. 1604 when it is taken up for consideration in the House 
of Representatives.

                            COMMITTEE ACTION

    H.R. 1604 was introduced on May 14, 1997, by Congressman 
Dale Kildee (D-MI). The bill was referred to the Committee on 
Resources. On June 24, 1997, the Committee held a hearing on 
the bill. On July 16, 1997, the Resources Committee met to 
consider H.R. 1604. An amendment in the nature of a substitute 
to make certain technical corrections proposed by the 
Administration was offered by Congressman Kildee, 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.

            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.

                   CONSTITUTIONAL AUTHORITY STATEMENT

    Article I, section 8 of the Constitution of the United 
States grants Congress the authority to enact H.R. 1604.

                        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. 1604. 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. 
1604 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. 1604.
    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. 
1604 from the Director of the Congressional Budget Office.

               CONGRESSIONAL BUDGET OFFICE COST ESTIMATE

                                     U.S. Congress,
                               Congressional Budget Office,
                                   Washington, DC, August 15, 1997.
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. 1604, a bill to 
provide for the division, use, and distribution of judgment 
funds of the Ottawa and Chippewa Indians of Michigan pursuant 
to dockets numbered 18-E, 58, 364, and 18-R before the Indian 
Claims Commission.
    If you wish further details on this estimate, we will be 
pleased to provide them. The CBO staff contacts are Lisa H. 
Daley (for federal costs), and Majorie Miller (for the state, 
local, and tribal impact).
            Sincerely,
                                              James L. Blum
                                   (For June E. O'Neill, Director).
    Enclosure.

H.R. 1604--A bill to provide for the division, use, and distribution of 
        judgment funds of the Ottawa and Chippewa Indians of Michigan 
        pursuant to dockets numbered 18-E, 58, 364, and 18-R before the 
        Indian Claims Commission

    CBO estimates that enacting H.R. 1604 would have no impact 
on the federal budget. Because the bill would not affect direct 
spending or receipts, pay-as-you-go procedures would not apply. 
H.R. 1604 contains no private-sector mandates as defined in the 
Unfunded Mandates Reform Act of 1995 (UMRA). While the bill 
contains intergovernmental mandates, CBO estimates that they 
would impose costs on tribal governments far below the 
threshold established by that act and would not affect state 
and local governments.
    H.R. 1604 would provide for the division, use, and 
distribution of funds awarded to the Ottawa and Chippewa 
Indians of Michigan pursuant to judgments of the Indian Claims 
Commission. These judgment funds were previously appropriated 
by the Congress and have been held in trust by the Department 
of the Interior for the beneficiaries, pending a determination 
of how the funds will be divided and used.
    Enacting this bill would have no impact on the federal 
budget because the budget authority and outlays associated with 
all four of these settlements were recorded at the time the 
original judgments were approved by Congress.
    The bill includes specific requirements for the use of the 
judgment funds awarded to the Sault Ste. Marie Tribe and the 
Bay Mills Indian Community. These requirements--primarily 
directives about how the funds are to be invested and the broad 
purposes for which they may be used--are mandates as defined by 
UMRA. CBO estimates that the cost of complying with these 
mandates would be small, far less than the amount of funds 
received by the tribes under this bill. The other groups 
designated to receive funds as a result of this bill are 
required to develop plans for the use and distribution of the 
funds. This provision is not a mandate because the bill 
provides that the Secretary of the Interior would take over 
responsibility for developing a plan if the tribes do not 
submit one within eight years of the bill's enactment. Again, 
any costs associated with this process would be more than 
offset by the funds released.
    The CBO staff contacts for this estimate are Lisa H. Daley 
(for federal costs), and Marjorie Miller (for the impact on 
state, local, and tribal governments). This estimate was 
approved by Robert A. Sunshine, Deputy Assistant Director for 
Budget Analysis.

                    COMPLIANCE WITH PUBLIC LAW 104-4

    H.R. 1604 contains no unfunded mandates.

                        CHANGES IN EXISTING LAW

    If enacted, H.R. 1604 would make no changes in existing 
law.

                                
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