[House Report 105-677]
[From the U.S. Government Publishing Office]
105th Congress Report
HOUSE OF REPRESENTATIVES
2d Session 105-677
_______________________________________________________________________
TO AMEND THE ALASKA NATIVE CLAIMS SETTLEMENT ACT TO MAKE CERTAIN
CLARIFICATIONS TO THE LAND BANK PROTECTION PROVISIONS, AND FOR OTHER
PURPOSES
_______________________________________________________________________
August 5, 1998.--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
together with
ADDITIONAL VIEWS
[To accompany H.R. 2000]
[Including cost estimate of the Congressional Budget Office]
The Committee on Resources, to whom was referred the bill
(H.R. 2000) to amend the Alaska Native Claims Settlement Act to
make certain clarifications to the land bank protection
provisions, 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. AUTOMATIC LAND BANK PROTECTION.
(a) Lands Received in Exchange From Certain Federal Agencies.--The
matter preceding clause (i) of section 907(d)(1)(A) of the Alaska
National Interest Lands Conservation Act (43 U.S.C. 1636(d)(1)(A)) is
amended by inserting ``or conveyed to a Native Corporation pursuant to
an exchange authorized by section 22(f) of Alaska Native Claims
Settlement Act or section 1302(h) of this Act or other applicable law''
after ``Settlement Trust''.
(b) Lands Exchanged Among Native Corporations.--Section
907(d)(2)(B) of such Act (43 U.S.C. 1636(d)(2)(B)) is amended--
(1) by striking ``and'' at the end of clause (ii);
(2) by striking the period at the end of clause (iii) and
inserting ``; and''; and
(3) by adding at the end the following:
``(iv) lands or interest in lands shall not be considered
developed or leased or sold to a third party as a result of an
exchange or conveyance of such land or interest in land between
or among Native Corporations and trusts, partnerships,
corporations, or joint ventures, whose beneficiaries, partners,
shareholders, or joint venturers are Native Corporations.''.
(c) Actions by Trustee Serving Pursuant to Agreement of Native
Corporations.--Section 907(d)(3)(B) of such Act (43 U.S.C.
1636(d)(3)(B)) is amended--
(1) by striking ``or'' at the end of clause (i);
(2) by striking the period at the end of clause (ii) and
inserting ``; or''; and
(3) by adding at the end the following:
``(iii) to actions by any trustee whose right, title, or
interest in land or interests in land arises pursuant to an
agreement between or among Native Corporations and trusts,
partnerships, or joint ventures whose beneficiaries, partners,
shareholders, or joint venturers are Native Corporations.''.
SEC. 2. RETAINED MINERAL ESTATE.
Section 12(c)(4) of the Alaska Native Claims Settlement Act (43
U.S.C. 1611(c)(4)) is amended--
(1) by redesignating subparagraphs (C) and (D) as
subparagraphs (E) and (F), respectively, and by inserting after
subparagraph (B) the following new subparagraphs:
``(C) Where such public lands are surrounded by or contiguous
to subsurface lands obtained by a Regional Corporation under
subsections (a) or (b), the Corporation may, upon request, have
such public land conveyed to it.
``(D)(i) A Regional Corporation which elects to obtain public
lands under subparagraph (C) shall be limited to a total of not
more than 12,000 acres. Selection by a Regional Corporation of
in lieu surface acres under subparagraph (E) pursuant to an
election under subparagraph (C) shall not be made from any
lands within a conservation system unit (as that term is
defined by section 102(4) of the Alaska National Interest Lands
Conservation Act (16 U.S.C. 3102(4)).
``(ii) An election to obtain the public lands described in
subparagraph (A), (B), or (C) shall include all available
parcels within the township in which the public lands are
located.
``(iii) For purposes of this subparagraph and subparagraph
(C), the term `Regional Corporation' shall refer only to Doyon,
Limited.''; and
(2) in subparagraph (E) (as so redesignated), by striking
``(A) or (B)'' and inserting ``(A), (B), or (C)''.
SEC. 3. CLARIFICATION ON TREATMENT OF BONDS FROM A NATIVE CORPORATION.
Section 29(c) of the Alaska Native Claims Settlement Act (43 U.S.C.
1626(c)) is amended--
(1) in paragraph (3)(A), by inserting ``and on bonds received
from a Native Corporation'' after ``from a Native
Corporation''; and
(2) in paragraph (3)(B), by inserting ``or bonds issued by a
Native Corporation which bonds shall be subject to the
protection of section 7(h) until voluntarily and expressly sold
or pledged by the shareholder subsequent to the date of
distribution'' before the semicolon.
SEC. 4. AMENDMENT TO PUBLIC LAW 102-415.
Section 20 of the Alaska Land Status Technical Corrections Act of
1992 (106 Stat. 2129), is amended by adding at the end the following
new subsection:
``(h) Establishment of the account under subsection (b) and
conveyance of land under subsection (c), if any, shall be treated as
though 3,520 acres of land had been conveyed to Gold Creek under
section 14(h)(2) of the Alaska Native Claims Settlement Act for which
rights to subsurface estate are hereby provided to CIRI. Within one
year from the date of enactment of this subsection, CIRI shall select
3,520 acres of land from the area designated for selection by paragraph
I.B.(2)(b) of the document identified in section 12(b) (referring to
the Talkeetna Mountains) of the Act of January 2, 1976 (43 U.S.C. 1611
note). Not more than five selections shall be made under this
subsection, each of which shall be reasonably compact and in whole
sections, except when separated by unavailable lands or when the
remaining entitlement is less than a whole section.''.
SEC. 5. CALISTA CORPORATION LAND EXCHANGE.
(a) Congressional Findings.--Congress finds and declares that--
(1) the land exchange authorized by section 8126 of Public
Law 102-172 should be implemented without further delay;
(2) the Calista Corporation, the Native Regional Corporation
organized under the authority of the Alaska Native Claims
Settlement Act (ANCSA) for the Yupik Eskimos of Southwestern
Alaska, which includes the entire Yukon Delta National Wildlife
Refuge--
(A) has responsibilities provided for by the
Settlement Act to help address social, cultural,
economic, health, subsistence, and related issues
within the Region and among its villages, including the
viability of the villages themselves, many of which are
remote and isolated;
(B) has been unable to fully carry out such
responsibilities; and
(C) the implementation of the exchange referred to in
this paragraph is essential to helping Calista utilize
its assets to carry out those responsibilities to
realize the benefits of ANCSA;
(3) the parties to the exchange have been unable to reach
agreement on the valuation of the lands and interests in lands
to be conveyed to the United States under section 8126 of
Public Law 102-171; and
(4) in light of the foregoing, it is appropriate and
necessary in this unique situation that Congress authorize and
direct the implementation of this exchange as set forth in this
section in furtherance of the purposes and underlying goals of
the Alaska Native Claims Settlement Act and the Alaska National
Interest Lands Conservation Act.
(b) Land Exchange Implementation.--Section 8126(a) of the
Department of Defense Appropriations Act, 1992 (105 Stat. 1206) is
amended--
(1) by inserting ``(1)'' after ``(a)'';
(2) by striking ``October 1, 1996'' and inserting ``October
1, 2002'';
(3) by inserting after ``October 28, 1991'' the following:
``(hereinafter referred to as `CCRD') and in the document
entitled, `The Calista Conveyance and Relinquishment Document
Addendum', dated September 15, 1996 (hereinafter referred to as
`CCRD Addendum')'';
(4) by striking ``The value'' and all that follows through
``Provided, That the'' and inserting in lieu thereof the
following:
``(2) The aggregate values of such lands and interests in land,
together with compensation for the considerations set forth in the
findings of this subsection, shall be the sum provided in paragraph (6)
of the CCRD Addendum. The'';
(5) in the last sentence, by inserting a period after
``1642'' and striking all that follows in that sentence; and
(6) by adding at the end the following new paragraph:
``(3) The amount credited to the property account is not subject to
adjustment for minor changes in acreage resulting from preparation or
correction of the land descriptions in the CCRD or CCRD Addendum or the
exclusion of any small tracts of land as a result of hazardous
materials surveys.''.
(c) Extension of Restriction on Certain Property Transfers.--
Section 8126(b) of Public Law 102-172 (105 Stat. 1206) is amended by
striking ``October 1, 1996'' and inserting ``October 1, 2002''.
(d) Exchange Administration.--Section 8126(c) of Public Law 102-172
(105 Stat. 1207) is amended--
(1) by inserting ``(1)'' after ``(c)'';
(2) by striking the sentence beginning ``On October 1,
1996,'' and inserting in lieu thereof the following: ``To the
extent such lands and interests have not been exchanged with
the United States, on January 1, 1998, the Secretary of the
Treasury shall establish a property account on behalf of
Calista Corporation. If the parties have mutually agreed to a
value as provided in subsection (a)(2), the Secretary of the
Treasury shall credit the account accordingly. In the absence
of such an agreement the Secretary of the Treasury shall credit
the account with an amount equal to 66 percent of the total
amount determined by paragraph (6) of the CCRD Addendum. The
account shall be available for use as provided in subsection
(c)(3), as follows:
``(A) On January 1, 1998, an amount equal to one-half the
amount credited pursuant to this paragraph shall be available
for use as provided.
``(B) On October 1, 1998, the remaining one-half of the
amount credited pursuant to this paragraph shall be available
for use as provided.
``(2) On October 1, 2002, to the extent any portion of the lands
and interests in lands have not been exchanged pursuant to subsection
(a) or conveyed or relinquished to the United States pursuant to
paragraph (1), the account established by paragraph (1) shall be
credited with an amount equal to any remainder of the value determined
pursuant to paragraph (1).'';
(3) by inserting ``(3)'' before ``Subject to'';
(4) by striking ``on or after October 1, 1996,'' and by
inserting after ``subsection (a) of this section,'' the
following: ``upon conveyance or relinquishment of equivalent
portions of the lands referenced in the CCRD and the CCRD
Addendum,''; and
(5) by adding at the end the following new paragraphs:
``(4) Notwithstanding any other provision of law, Calista
Corporation or the village corporations identified in the CCRD Addendum
may assign, without restriction, any or all of the account upon written
notification to the Secretary of the Treasury and the Secretary of the
Interior.
``(5) Calista will provide to the Bureau of Land Management, Alaska
State Office, appropriate documentation to enable that office to
perform the accounting required by paragraph (1) and to forward such
information, if requested by Calista, to the Secretary of the Treasury
as authorized by such paragraph.
``(6) For the purpose of the determination of the applicability of
section 7(i) of the Alaska Native Claims Settlement Act (43 U.S.C.
1606(i)) to revenues generated pursuant to this section, such revenues
shall be calculated in accordance with paragraph (5) of the CCRD
Addendum.''.
SEC. 6. MINING CLAIMS.
Paragraph (3) of section 22(c) of the Alaska Native Claims
Settlement Act (43 U.S.C. 1621(c)) is amended--
(1) by striking out ``regional corporation'' each place it
appears and inserting in lieu thereof ``Regional Corporation'';
and
(2) by adding at the end the following: ``The provisions of
this section shall apply to Haida Corporation and the Haida
Traditional Use Sites, which shall be treated as a Regional
Corporation for the purposes of this paragraph, except that any
revenues remitted to Haida Corporation under this section shall
not be subject to distribution pursuant to section 7(i) of this
Act.''.
SEC. 7. SALE, DISPOSITION, OR OTHER USE OF COMMON VARIETIES OF SAND,
GRAVEL, STONE, PUMICE, PEAT, CLAY, OR CINDER
RESOURCES.
Subsection (i) of section 7 of the Alaska Native Claims Settlement
Act (43 U.S.C. 1606(i)) is amended--
(1) by striking ``Seventy per centum'' and inserting ``(A)
Except as provided by subparagraph (B), seventy percent''; and
(2) by adding at the end the following:
``(B) In the case of the sale, disposition, or other use of common
varieties of sand, gravel, stone, pumice, peat, clay, or cinder
resources made after the date of enactment of this subparagraph, the
revenues received by a Regional Corporation shall not be subject to
division under subparagraph (A). Nothing in this subparagraph is
intended to or shall be construed to alter the ownership of such sand,
gravel, stone, pumice, peat, clay, or cinder resources.''.
SEC. 8. ALASKA NATIVE ALLOTMENT APPLICATIONS.
Section 905(a) of the Alaska National Interest Lands Conservation
Act (43 U.S.C. 1634(a)) is amended by adding at the end the following:
``(7) Paragraph (1) of this subsection and subsection (d) shall
apply, and paragraph (5) of this subsection shall cease to apply, to an
application--
``(A) that is open and pending on the date of enactment of
this paragraph,
``(B) if the lands described in the application are in
Federal ownership other than as a result of reacquisition by
the United States after January 3, 1959, and
``(C) if any protest which is filed by the State of Alaska
pursuant to paragraph (5)(B) with respect to the application is
withdrawn or dismissed either before, on, or after the date of
the enactment of this paragraph.
``(8)(A) Any allotment application which is open and pending and
which is legislatively approved by enactment of paragraph (7) shall,
when allotted, be made subject to any easement, trail, or right-of-way
in existence on the date of the Native allotment applicant's
commencement of use and occupancy.
``(B) The Secretary shall make any factual determinations required
to carry out this paragraph.''.
SEC. 9. VISITOR SERVICES.
Paragraph (1) of section 1307(b) of the Alaska National Interest
Lands Conservation Act (16 U.S.C. 3197(b)) is amended--
(1) by striking ``Native Corporation'' and inserting ``Native
Corporations''; and
(2) by striking ``is most directly affected'' and inserting
``are most directly affected''.
SEC. 10. LOCAL HIRE REPORT.
(a) In General.--Not later than 18 months after the date of
enactment of this Act, the Secretary of the Interior shall transmit to
Congress a report.
(b) Local Hire.--The report required by subsection (a) shall--
(1) indicate the actions taken in carrying out subsection (b)
of section 1308 of the Alaska National Interest Lands
Conservation Act (16 U.S.C. 3198);
(2) address the recruitment processes that may restrict
employees hired under subsection (a) of such section from
successfully obtaining positions in the competitive service;
and
(3) describe the actions of the Secretary of the Interior in
contracting with Alaska Native Corporations to provide services
with respect to public lands in Alaska.
(c) Cooperation.--The Secretary of Agriculture shall cooperate with
the Secretary of the Interior in carrying out this section with respect
to the Forest Service.
Purpose of the Bill
The purpose of H.R. 2000 is to amend the Alaska Native
Claims Settlement Act to make certain clarifications to the
land bank protection provisions, and for other purposes.
Background and Need for Legislation
The Alaska Native Claims Settlement Act (ANCSA) helped
settle the aboriginal land claims of Alaska Natives. The goals
of ANCSA were two fold: (1) to establish property rights of
Native Alaskans in their aboriginal land; and (2) to secure an
economic base for their long-term survival as a people. ANCSA
created 13 regional corporations and 200 village corporations
and granted these entities 44 million acres of land in Alaska
and $962.5 million to implement these goals.
This bill is a result of recommendations from the
legislative council of the Alaska Federation of Natives to
address some of the technical problems which have arisen since
the passage of ANCSA and related statutes.
Committee Action
H.R. 2000 was introduced by Congressman Don Young (R-AK),
Chairman of the Committee on Resources, on June 21, 1997. H.R.
2000 is similar to H.R. 2505 of the 104th Congress. H.R. 2000
was referred to the Committee on Resources. The Committee held
hearings in the 104th Congress on H.R. 2505 on March 19, 1996,
and June 11, 1996, to hear testimony from the Administration,
the Alaska Federation of Natives, Calista Native Corporation,
Ahtna Native Corporation, and Elim Native Corporation. The
Committee held a mark up of H.R. 2000 on October 1, 1997.
Congressman Young offered amendments en bloc which were adopted
by voice vote. No other amendments were offered and the bill
was ordered favorably reported to the House of Representatives
by voice vote.
Section-by-Section Analysis
Section 1. automatic land bank protection
Section 1 would amend Section 907 of the Alaska National
Interest Lands Conveyance Act (43 U.S.C. 1636, ANILCA) to
extend the automatic land protections to lands trades between
village corporations, intra-regional corporation land trades
and Native corporation land trades with federal or state
governments.
section 2. retained mineral estate
Section 2 would allow a Native regional corporation the
option of obtaining the retained mineral estate of the Native
land allotments that are totally surrounded by ANCSA Section
12(a) and 12(b) land selections of the village corporations.
section 3. clarification on treatment of bonds from a native
corporation
Section 3 will allow the ANCSA corporations the options of
distributing bonds to their shareholders as a form of
collateral, and to be included in the $2,000 annual income
exclusion used in making a determination of a shareholder's
qualification for food stamps and other entitlement programs.
section 4. amendment to public law 102-415
Section 4 would amend Public Law 102-415 to grant
subsurface rights to the Cook Inlet Region Corporation in
fulfillment of its entitlement under Section 14(h)(2) of ANCSA.
section 5. calista corporation land exchange
The Calista Native Corporation land exchange was originally
authorized by Section 8126 of Public Law 102-172 in 1991. The
lands package includes overall 218,515 acres of land (about
half the size of Rhode Island), of which the vast majority is
subsurface lands. The Department of the Interior and Calista
Corporation have been unable to agree on the value of the lands
to be exchanged because of a number of factors, including the
difficulty in assigning value to lands that are: (1) wetlands
whose primary benefits are for their natural, undeveloped
character and wildlife productivity; and (2) subsurface estate
which underlies fish and wildlife habitat inside the Yukon
Delta National Wildlife Refuge.
The Calista Region is the most populous in Alaska. It is
also the most remote and most socially troubled and
economically disadvantaged. There are essentially no roads,
little infrastructure and the living conditions there can be
compared to the Third World. The health conditions are in many
categories the worst in the Nation. There is no where else in
the United States that is so isolated geographically and
culturally than the Yukon Delta of the Calista Region.
ANILCA established the boundary for the Yukon Delta
National Wildlife refuge to include the Native Regional and
Village Corporation lands. The purposes of ANILCA include
providing for ``habitat for . . . wildlife species of
inestimable value to . . . the Nation, including species
dependent on vast relatively undeveloped areas'', ``to preserve
in their natural state unaltered Arctic tundra'' and ``to
protect the resources related to subsistence needs.''
The lands in the Calista Region are a national wetlands
repository with wildlife productivity unrivaled anywhere else.
The entire Yukon-Kuskokwim Delta is the terminus or is a major
resting and nesting area along the Pacific Flyway for dozens of
species of birds and waterfowl.
Section 5 of the bill would amend Section 8126 of Public
Law 102-72, which authorized a land exchange between the United
States and Calista Corporation. As stated above, the Calista
Region of Alaska is one of the poorest and most socially
troubled areas in the Nation. The exchange was authorized so as
to provide Calista with a means of economic self sufficiency
infurtherance of the purposes of ANCSA. Under Section 8126, the
Secretary of the Interior and Calista were to determine a mutually
agreeable value for Calista's lands and interests which are to be
exchanged, subject to a maximum per acre value of $300. The two parties
have been unable to arrive at a mutually agreeable value, however.
Moreover, the Secretary's appraisals did not comply with the
requirements of Section 8126 and as a result, in the Committee's
opinion, significantly underestimated the value of Calista's lands and
interests. Section 5 would eliminate this impasse by establishing a
total value to be ascribed to Calista's lands and interests, as
Congress has had to do in numerous other instances since 1976. In doing
so Congress would simply be providing the figure which Calista and the
Secretary of the Interior were unable to determine. The Committee had
directed the Calista Corporation and the Department of the Interior to
resolve any outstanding issues with regard to this land exchange by
October 24, 1997, but no resolution has yet been reached.
Subsection (a) sets out findings, which direct that the
exchange should be implemented without delay; explains
Calista's role as a Regional Native Corporation and that it has
not been able to fully meet its responsibilities; states that
the exchange is essential if Calista is to fully meet its
responsibilities to the people of the Region; and declares that
it is necessary and appropriate in this situation for Congress
to direct the implementation of the exchange.
Subsection (b) amends section 8126 of Public Law 102-172.
First, the subsection provides authority for certain Federal
property to be transferred to the Secretary of the Interior for
the purpose of exchanging such property for lands owned by the
participating Alaska Native Corporations as outlined in the
Calista Conveyance and Relinquishment Document (CCRD). Second,
the subsection provides the authority for the establishment of
aggregate values of the lands together with compensation for
certain other considerations. Third, there will be no
adjustment to the property account for minor changes in
acreages based on corrections to land descriptions. Fourth, it
provides for the establishment of a property account in an
amount equal to the amount determined by the parties, or,
absent such an agreement, determined under the CCRD. This
account would be credited and be available for use according to
the following schedule: January 1, 1998, one-half the account;
October 1, 1998, the remaining one-half. Fifth, if all the
exchanges authorized under Section 8126(a) of Public Law 102-
172, or conveyances or relinquishments to the United States,
have not completed by October 1, 2002, the account shall be
credited accordingly. Sixth, the property account may be
assigned after proper notice. Seventh, Calista Corporation must
provide appropriate documentation to enable the Bureau of Land
Management, Alaska State Office, to perform required
accounting. Eighth, the subsection provides the method for
calculating revenue to be shared under Section 7(i) of ANCSA as
provided in the CCRD.
section 6. mining claims
Section 6 would amend Public Law 104-42 to allow Haida
Corporation to administer certain mining claims entirely within
lands conveyed to Haida Corporation.
section 7. sale, disposition, or other use of common varieties of sand,
gravel, stone, pumice, peat, clay or cinder resources
Section 7 would make revenues derived by the regional
corporations from the sale of sand, rock and gravel exempt from
ANCSA Section 7(i) revenue sharing without affecting the
ownership of the affected material spelled out in this
proposal. This provision will codify an agreement that was
reached between the ANCSA regional corporations in June of 1980
after years of litigation.
section 8. alaska native allotment applications
Section 8 would address the Native allotments applications
that the State of Alaska protested per ANILCA. The intent is,
in those instances where the State of Alaska filed a protest
against the legislative approval of Native allotments under
ANILCA, and the State subsequently lifts its protest on an
allotment, that allotment will then be considered legislatively
approved under ANILCA. In addition, if the State of Alaska's
protests are dismissed, the affected Native allotments would be
considered legislatively approved under this provision.
section 9. visitor services
Section 9 would allow the Secretary of the Interior the
flexibility of working with affected Native corporations rather
than just one Native corporation on the implementation of
Section 1307 of ANILCA (the contracting for visitor services,
except sport fishing and hunting guiding activities, within any
conservation unit). Section 1307(b)(1) requires the Secretary
of the Interior to give preference to the Native corporation
which the Secretary determines is most directly affected by the
establishment or expansion of a conservation unit under ANILCA.
section 10. local hire report
Section 10 addresses Section 1308 of ANILCA, which
authorizes the Secretary of the Interior to hire local people
with fewer skills than required under a job description through
appointments. The problem is that if a person hired through
this process later gains enough skills to meet or exceed the
requirements of a job he or she was appointed to, he or she
cannot become a permanent employee of the Department with
associated benefits. This provision will direct the Secretary
of the Interior to complete a report within 18 months of
enactment to address the recruitment process that may restrict
employees hired under Section 1308 of ANILCA from successfully
obtaining positions in the competitive service.
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. 2000.
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. 2000. 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.
2000 does not contain any new budget authority, spending
authority, credit authority, or an increase or decrease in tax
expenditures. According to the Congressional Budget Office,
enactment of H.R. 2000 would increase direct spending.
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. 2000.
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.
2000 from the Director of the Congressional Budget Office.
U.S. Congress,
Congressional Budget Office,
Washington, DC, January 20, 1998.
Hon. Don Young,
Chairman, Committee on Resources,
U.S. House of Representatives, Washington, DC.
Dear Mr. Chairman: The Congressional Budget Office has
prepared the enclosed revised cost estimate for H.R. 2000, a
bill to amend the Alaska Native Claims Settlement Act to make
certain clarifications to the land bank protection provisions,
and for other purposes. This cost estimate supersedes the cost
estimate provided on October 29, 1997.
CBO has revised the estimate of total costs for H.R. 2000
from $17 million over the 1998-2007 period to $34 million over
the same period. In our previous estimate, we assumed that one-
half of the monetary credits issued under H.R. 2000 would be
used to purchase federal land that would not otherwise be sold.
CBO has since learned that monetary credits may be used to
purchase U.S. Treasury securities as well as real and tangible
personal property. In fact, two Alaska Native Corporations have
obtained Treasury securities with their monetary credits within
the last two years. Because monetary credits can be used to
purchase Treasury securities, which may be converted into cash,
CBO now believes that the issuance of monetary credits will not
increase federal sales of land. Therefore, CBO's best estimate
of the cost of H.R. 2000 is simply the amount of monetary
credits to be issued: $34 million.
If you wish further details on this estimate, we will be
pleased to provide them. The CBO staff contacts are Victoria V.
Heid (for federal costs), and Marjorie Miller (for the impact
on state, local and tribal governments).
Sincerely,
June E. O'Neill, Director.
Congressional Budget Office Cost Estimate
H.R. 2000.--A bill to amend the Alaska Claims Settlement Act to make
certain clarifications to the land bank protection provisions,
and for other purposes
Summary.--CBO estimates that enacting H.R. 2000 would
increase direct spending by about $34 million over the 1998-
2003 period. Because the bill would affect spending, pay-as-
you-go procedures would apply.
H.R. 2000 contains at least one intergovernmental mandate
as defined in the Unfunded Mandates reform Act of 1995 (UMRA),
but CBO estimates that any costs imposed on state, local, and
tribal governments would be minimal and would not exceed the
threshold established in that act ($50 million in 1996,
adjusted annually for inflation). The bill contains no private-
sector mandates as defined in UMRA.
This cost estimate revises and supersedes the CBO estimate
provided on October 29, 1997. The revisions are explained
below.
Description of the bill's major provisions.--H.R. 2000
would affect the terms and conditions of various property
transactions involving Alaska native corporations. Several
provisions would affect the property rights of specific native
corporations.
H.R. 2000 would amend existing law by assigning a value of
$39 million to properties to be conveyed by the Calista
Corporation in exchange for monetary credits to certain federal
properties if the Department of the Interior (DOI) and the
corporation have not agreed on the value of the exchange by
January 1, 1998. The bill would allow the Doyon, Limited,
native corporation to obtain the subsurface rights retained by
the federal government in up to 12,000 acres of public lands
surrounded by or contiguous to corporation-owned properties.
Another provision would expand the entitlement of the Cook
Inlet Region Incorporated (CIRI) to include subsurface rights
to an additional 3,520 acres.
The bill would permit individual natives to exclude bonds
issued by a native corporation from the assets used for
determining financial eligibility for federal need-based
assistance or benefits.
The bill would extend certain protections to lands
exchanged among corporation, clarify the status of applications
involving land allotments, and exempt a corporation's revenues
from sand, gravel, and certain other resources from the income
distribution requirements that apply to regional corporations'
development of subsurface property. The bill would specify the
method of distributing mining claim revenues related to the
Haida Corporation or Haida Traditional Use sites.
Finally, the bill includes administrative provisions
affecting contract preferences for visitor services, and
requiring a status report by the Secretary of the Interior on
implementing current laws on local hiring and contracting with
regard to public lands.
Estimated cost to the Federal Government.--CBO estimates
that enacting this bill would increase direct spending by $21
million in 1998 and $34 million over the 1998-2003 period. The
estimated budgetary impact of enacting H.R. 2000 is shown in
the following table. The costs of this legislation fall within
budget function 300 (natural resources and environment).
----------------------------------------------------------------------------------------------------------------
By Fiscal Year, in millions of dollars
-----------------------------------------------------
1998 1999 2000 2001 2002 2003
----------------------------------------------------------------------------------------------------------------
Direct Spending (including offsetting receipts)
Spending Under Current Law:
Estimated Budget Authority............................ 5 0 0 0 0 0
Estimated Outlays..................................... 5 0 0 0 0 0
Proposed Changes:
Estimated Budget Authority............................ 21 0 0 0 0 13
Estimated Outlays..................................... 21 0 0 0 0 13
Spending Under H.R. 2000:
Estimated Budget Authority............................ 26 0 0 0 0 13
Estimated Outlays..................................... 26 0 0 0 0 13
----------------------------------------------------------------------------------------------------------------
basis of estimate
Direct Spending
CBO estimates that enacting H.R. 2000 would increase direct
spending because of provisions that would issue monetary
credits.
Calista Corporation property account
The costs of this bill would result primarily from section
5, which prescribes the value of the Calista Corporation's
properties to be exchanged for monetary credits with the
Department of the Interior to complete a land exchange between
the two parties. Under current law, the Calista Corporation is
to receive monetary credits equal to the value of the lands to
be conveyed, and the corporation is authorized to use these
monetary credits to complete the land exchange by purchasing
other federal property. The value of monetary credits counts as
direct spending in the year they are issued. So far no monetary
credits have been awarded because DOI and Calista disagree on
the valuation of the properties.
The gap between the valuations is substantial: the
department's appraisal assigned a value of about $5 million to
the properties, while the corporation asserts that their
property is worth significantly more. Given the differences in
methodologies and values, this impasse could last for some
time. Because the department will not award monetary credits
until there is an agreement, it is possible that, under current
law, Calista would not receive any monetary credits for several
years. For the purpose of this estimate, however, we assume an
agreement will be reached in fiscal year 1998, because of
Calista's interest in acquiring property with the credits.
Although a negotiated valuation could exceed DOI's $5 million
appraisal, CBO has no basis for estimating whether and to what
extent the Secretary would agree to a higher value. Hence, we
assume for this estimate that Calista would receive monetary
credits of about $5 million in fiscal year 1998 in the absence
of this legislation.
H.R. 2000 provides that if the parties did not agree on a
value of the Calista properties to be exchanged, the value
would be established at $39 million. If the exchange does not
occur before January 1, 1998, the bill directs the Secretary of
the Treasury to credit the Calista property account with two-
thirds of the established value of the Calista property ($26
million) in monetary credits in fiscal year 1998. The
corporation would be permitted to use up to one-half of that
amount in fiscal year 1998 and the remaining one-half of the
amount in fiscal year 1999. If the two parties have not
completed the exchange by October 1, 2002, the bill directs the
Secretary of the Treasury to credit the account with monetary
credits equal to the remaining $13 million. These actions would
result in a net increase of $34 million in the amount of
credits issued. Monetary credits are scored as direct spending
in the year they are issued.
The bill provides that only federal property not scheduled
to be sold before fiscal year 2003 may be transferred to the
Secretary of the Interior for use in the Calista land exchange.
However, that limitation does not apply to the corporation's
use of monetary credits to purchase federal property, including
Treasury securities.
Subsurface conveyance to Doyon Limited
Section 2 would allow Doyon, Limited, a regional
corporation, to acquire up to 12,000 acres of federally owned
mineral estate surrounded by or contiguous to subsurface lands
owned by that corporation. According to DOI, the federally
owned mineral estate that Doyon, Limited, could acquire under
the bill currently has no mineral development. Based on
information from the agency, we estimate that although the
federal land to be conveyed has some potential for future
development, any forgone receipts from the conveyance would
total less than $500,000 per year.
Change in eligibility for certain federal assistance
Section would permit Alaska natives to exclude bonds issued
by a native corporation from the assets and resources used to
determine financial eligibility for federal need-based
assistance or benefits. Under current law, natives may exclude
certain assets, including stocks issued or distributed by a
native corporation as a dividend, from federal financial
eligibility tests. This provision would expand the permitted
exclusions to include bonds issued by native corporations.
Enacting this provisions could have limited effects on he
federal budget in certain situations. For example, according to
a representative of Cook Inlet Region Incorporated (CIRI), this
provision would give CIRI greater flexibility in financing a
corporate buy-back of its shares, which it seeks in order to
keep shares in native ownership. (Because CIRI is the only
native corporation currently authorized (under Public Law 104-
10) to purchase stock from its shareholders, natives in other
native corporations would not be affected in this case.)
Enacting the provision could increase federal spending by
allowing CIRI shareholders, who had planned to sell their
shares to CIRI in exchange for a bond and would have stopped
receiving federal assistance payments once their assets
exceeded financial eligibility tests, to continue to receive
federal assistance. We estimate that any such increase in
federal assistance payments would total less than $500,000 per
year.
Change in CIRI's subsurface rights
Section 4 would increase the entitlement of CIRI to include
subsurface rights to an additional 3,520 acres of federal land.
Based on information from CIRI representatives and DOI, the
corporation is likely to choose properties in the Talkeetna
Mountains area. According to DOI, the federal government
currently generates no offsetting receipts from that land and
does not expect any significant income from it over the next
ten years. Therefore, we estimate that any budgetary effect of
enacting this provision would be negligible.
Pay-as-you-go-considerations.--Section 252 of the Balance
Budget and Emergency Deficit Control Act of 1985 sets up pay-
as-you-go procedures for legislation affecting direct spending
or receipts. As shown in the following table, CBO estimates
that enacting H.R. 2000 would affect direct spending by
increasing the amount of monetary credits issued to the Calista
Corporation by $34 million over the 1998-2007 period. Other
provisions could also affect direct sending by giving various
native corporations the rights to income-producing federal
lands, but we estimate that any such additional effects would
be negligible. For the purposes of enforcing pay-as-you-go
procedures, only the effects in the budget year and the
subsequent four years are counted.
SUMMARY OF EFFECTS ON DIRECT SPENDING AND RECEIPTS
--------------------------------------------------------------------------------------------------------------------------------------------------------
By Fiscal Year, in millions of dollars
-----------------------------------------------------------------------------------------
1998 1999 2000 2001 2002 2003 2004 2005 2006 2007
--------------------------------------------------------------------------------------------------------------------------------------------------------
Changes in outlays............................................ 21 0 0 0 0 13 0 0 0 0
Changes in receipts........................................... (\1\) (\1\) (\1\) (\1\) (\1\) (\1\) (\1\) (\1\) (\1\) (\1\)
--------------------------------------------------------------------------------------------------------------------------------------------------------
\1\ Not applicable.
Estimated impact on state, local, and tribal governments.--
H.R. 2000 contains at least one intergovernmental mandate as
defined in UMRA, but CBO estimates that any costs imposed on
state, local, and tribal governments would be minimal and would
not exceed the threshold established in that act ($50 million
in 1996, adjusted annually for inflation).
Mandates
Section 1 of this bill would amend the Alaska National
Interest Lands Conservation Act to clarify what lands are
eligible for automatic land protections, including exemption
from property taxes. This provision would impose a mandate on
the state of Alaska and its constituent local governments
because it could increase the amount of land exempt from state
and local property taxes. (UMRA defines the direct cost of
mandates to include revenues that state, local, or tribal
governments would be prohibited from collecting.) Based on
information provided by Alaska state officials, we estimate
that the impact would be negligible, because Alaska has no
state property tax and most of the land affected would be in
areas of the state with no local property taxes.
By exempting the bonds of native corporations and the
income from those bonds from the determination of eligibility
for some means-tested federal assistance programs, section 3
would increase spending for those programs. Because states
share these costs, this provision would impose costs on state
governments. CBO cannot determine whether some of these costs
would result from an intergovernmental mandate, as defined in
UMRA. In any event, CBO estimates that any additional costs to
states would be minimal.
Other impacts
Other sections of the bill would result in both costs and
benefits for state, local, and tribal governments. Several
sections of the bill would benefit specific Alaska native
corporations, but some of these provisions could affect the
distribution of land and other resources among the
corporations. For example, section 7 would allow regional
corporations to dispose of sand, gravel, and similar materials
without distributing part of the proceeds among the other
regional corporations, as required by current law. This change
would allow village corporations to gain greater access to
these resources.
Other provisions would benefit Alaska native corporations
by expanding their rights to property and resources currently
held by the federal government. Section 5 would specify the
value of the properties to be exchanged by the Calista
Corporation for other federal properties. This section would
effectively increase the amount of property that the
corporation could obtain. Section 2 would allow Doyon, Ltd., a
regional native corporation, to obtain additional subsurface
rights now retained by the federal government. Section 4 would
give CIRI subsurface rights to an additional 3,520 acres.
Estimated impact on the private sector.--This bill will
impose no new private-sector mandates as defined in UMRA.
Previous CBO estimate.--This revised cost estimate
supersedes a CBO cost estimate prepared on October 29, 1997,
for H.R. 2000 as ordered reported by the House Committee on
Resources on October 1, 1997.
CB has revised the estimate of total costs for H.R. 2000
from $17 million over the 1998-2007 period to $34 million over
the same period. In our previous estimate, we assumed that one-
half of the monetary credits issued under H.R. 2000 would be
used to purchase federal land that would not otherwise be sold.
CBO has since learned that monetary credits may be used to
purchase U.S. Treasury securities as well as real and tangible
personal property. In fact, two Alaska Native Corporations have
obtained Treasury securities with their monetary credits within
the last two years: Gold Creek used $5 million of their
monetary credits to buy Treasury securities in October 1996,
and the Haida Corporation used $48 million of monetary credits
to buy Treasury securities in March 1997. Because monetary
credits can be used to purchase Treasury securities, which may
be converted into cash, CBO now believes that the issuance of
monetary credits will not increase federal sales of land.
Therefore, CBO's best estimate of the cost of H.R. 2000 is
simply the amount of monetary cedits to be issued: $34 million.
Estimate prepared by.--Federal Costs: Victoria V. Heid.
Impact on State, Local and Tribal Governments: Marjorie Miller.
Estimate approved by.--Paul N. Van de Water, Assistant
Director for Budget Analysis.
Compliance With Public Law 104-4
H.R. 2000 contains no unfunded mandates, as defined in
Public Law 104-4.
Changes in Existing Law Made by the Bill, as Reported
In compliance with clause 3 of rule XIII of the Rules of
the House of Representatives, changes in existing law made by
the bill, as reported, are shown as follows (existing law
proposed to be omitted is enclosed in black brackets, new
matter is printed in italics, existing law in which no change
is proposed is shown in roman):
ALASKA NATIONAL INTEREST LANDS CONSERVATION ACT
* * * * * * *
TITLE IX--IMPLEMENTATION OF ALASKA NATIVE CLAIMS SETTLEMENT ACT AND
ALASKA STATEHOOD ACT
* * * * * * *
alaska native allotments
Sec. 905. (a)(1) * * *
* * * * * * *
(7) Paragraph (1) of this subsection and subsection (d)
shall apply, and paragraph (5) of this subsection shall cease
to apply, to an application--
(A) that is open and pending on the date of enactment
of this paragraph,
(B) if the lands described in the application are in
Federal ownership other than as a result of
reacquisition by the United States after January 3,
1959, and
(C) if any protest which is filed by the State of
Alaska pursuant to paragraph (5)(B) with respect to the
application is withdrawn or dismissed either before,
on, or after the date of the enactment of this
paragraph.
(8)(A) Any allotment application which is open and pending
and which is legislatively approved by enactment of paragraph
(7) shall, when allotted, be made subject to any easement,
trail, or right-of-way in existence on the date of the Native
allotment applicant's commencement of use and occupancy.
(B) The Secretary shall make any factual determinations
required to carry out this paragraph.
* * * * * * *
alaska land bank
Sec. 907. (a) * * *
* * * * * * *
(d) Automatic Protections for Lands Conveyed Pursuant to
the Alaska Native Claims Settlement Act.--(1)(A)
Notwithstanding any other provision of law or doctrine of
equity, all land and interests in land in Alaska conveyed by
the Federal Government pursuant to the Alaska Native Claims
Settlement Act to a Native individual or Native Corporation or
subsequently reconveyed by a Native Corporation pursuant to
section 39 of that Act to a Settlement Trust or conveyed to a
Native Corporation pursuant to an exchange authorized by
section 22(f) of Alaska Native Claims Settlement Act or section
1302(h) of this Act or other applicable law shall be exempt, so
long as such land and interests are not developed or leased or
sold to third parties from--
(i) * * *
* * * * * * *
(2) Definitions.--(A) * * *
(B) For purposes of this subsection--
(i) * * *
(ii) land upon which timber resources are being
harvested shall be considered developed only during the
period of such harvest and only to the extent that such
land is integrally related to the timber harvesting
operation; [and]
(iii) land subdivided by a State or local platting
authority on the basis of a subdivision plat submitted
by the holder of the land or its agent, shall be
considered developed on the date an approved
subdivision plat is recorded by such holder or agent
unless the subdivided property is a remainder
parcel[.]; and
(iv) lands or interest in lands shall not be
considered developed or leased or sold to a third party
as a result of an exchange or conveyance of such land
or interest in land between or among Native
Corporations and trusts, partnerships, corporations, or
joint ventures, whose beneficiaries, partners,
shareholders, or joint venturers are Native
Corporations.
(3) Action by a Trustee.--(A) * * *
(B) The prohibitions of subparagraph (A) shall not apply--
(i) when the actions of such trustee, receiver, or
custodian are for purposes of exploration or pursuant
to a judgment in law or in equity (or arbitration
award) arising out of any claim made pursuant to
section 7(i) or section 14(c) of the Alaska Native
Claims Settlement Act; [or]
(ii) to any land, or interest in land, which has
been--
(I) developed or leased prior to the vesting
of the trustee, receiver, or custodian with the
right, title, or interest of the Native
Corporation; or
(II) expressly pledged as security for any
loan or expressly committed to any commercial
transaction in a valid agreement[.]; or
(iii) to actions by any trustee whose right, title,
or interest in land or interests in land arises
pursuant to an agreement between or among Native
Corporations and trusts, partnerships, or joint
ventures whose beneficiaries, partners, shareholders,
or joint venturers are Native Corporations.
* * * * * * *
TITLE XIII--ADMINISTRATIVE PROVISIONS
* * * * * * *
revenue-producing visitor services
Sec. 1307. (a) * * *
(b) Preference.--Notwithstanding provisions of law other
than those contained in subsection (a), in selecting persons to
provide (and in contracting for the provisions of) any type of
visitor of visitor service for any conservation system unit,
except sport fishing and hunting guiding activities, the
Secretary--
(1) shall give preference to Native [Corporation]
Corporations which the Secretary determines [is most
directly affected] are most directly affected by the
establishment or expansion of such unit by or under the
provisions of this Act;
* * * * * * *
----------
ALASKA NATIVE CLAIMS SETTLEMENT ACT
* * * * * * *
regional corporations
Sec. 7. (a) * * *
* * * * * * *
(i)(1) [Seventy per centum](A) Except as provided by
subparagraph (B), seventy percent of all revenues received by
each Regional Corporation from the timber resources and
subsurface estate patented to it pursuant to this Act shall be
divided annually by the Regional Corporation among all twelve
Regional Corporations organized pursuant to this section
according to the number of Natives enrolled in each region
pursuant to section 5. The provisions of this subsection shall
not apply to the thirteenth Regional Corporation if organized
pursuant to subsection (c) hereof.
(B) In the case of the sale, disposition, or other use of
common varieties of sand, gravel, stone, pumice, peat, clay, or
cinder resources made after the date of enactment of this
subparagraph, the revenues received by a Regional Corporation
shall not be subject to division under subparagraph (A).
Nothing in this subparagraph is intended to or shall be
construed to alter the ownership of such sand, gravel, stone,
pumice, peat, clay, or cinder resources.
* * * * * * *
native land selections
Sec. 12. (a) * * *
* * * * * * *
(c) The difference between thirty-eight million acres and
the 22 million acres selected by Village Corporations pursuant
to subsections (a) and (b) shall be allocated among the eleven
Regional Corporations (which excludes the Regional Corporation
for southeastern Alaska) as follows:
(1) * * *
* * * * * * *
(4) Where the public lands consist only of the mineral
estate, or portion thereof, which is reserved by the United
States upon patent of the balance of the estate under one of
the public land laws, other than this Act, the Regional
Corporations may select as follows:
(A) * * *
* * * * * * *
(C) Where such public lands are surrounded by or
contiguous to subsurface lands obtained by a Regional
Corporation under subsections (a) or (b), the
Corporation may, upon request, have such public land
conveyed to it.
(D)(i) A Regional Corporation which elects to obtain
public lands under subparagraph (C) shall be limited to
a total of not more than 12,000 acres. Selection by a
Regional Corporation of in lieu surface acres under
subparagraph (E) pursuant to an election under
subparagraph (C) shall not be made from any lands
within a conservation system unit (as that term is
defined by section 102(4) of the Alaska National
Interest Lands Conservation Act (16 U.S.C. 3102(4)).
(ii) An election to obtain the public lands described
in subparagraph (A), (B), or (C) shall include all
available parcels within the township in which the
public lands are located.
(iii) For purposes of this subparagraph and
subparagraph (C), the term ``Regional Corporation''
shall refer only to Doyon, Limited.
[(C)] (E) Where the Regional Corporation elects to
obtain such public lands under subparagraph [(A) or
(B)] (A), (B), or (C) of this paragraph, it may select,
within ninety days of receipt of notice from the
Secretary, the surface estate in an equal acreage from
other public lands withdrawn by the Secretary for that
purpose. Such selections shall be in units no smaller
than a whole section, except where the remaining
entitlement is less than six hundred and forty acres,
or where an entire section is not available. Where
possible, selections shall be of lands from which the
subsurface estate was selected by that Regional
Corporation pursuant to subsection 12(a)(1) or 14(h)(9)
of this Act, and, where possible, all selections made
under this section shall be contiguous to lands already
selected by the Regional Corporation or a Village
Corporation. The Secretary is authorized, as necessary,
to withdraw up to two times the acreage entitlement of
the in lieu surface estate from vacant, unappropriated,
and unreserved public lands from which the Regional
Corporation may select such in lieu surface estate
except that the Secretary may withdraw public lands
which had been previously withdrawn pursuant to
subsection 17(d)(1).
[(D)] (F) No mineral estate or in lieu surface estate
shall be available for selection within the National
Petroleum Reserve--Alaska or within Wildlife Refuges as
the boundaries of those refuges exist on the date of
enactment of this Act.
* * * * * * *
miscellaneous
Sec. 22. (a) * * *
* * * * * * *
(c)(1) * * *
* * * * * * *
(3) This section shall apply to lands conveyed by
interim conveyance or patent to a [regional
corporation] Regional Corporation pursuant to this Act
which are made subject to a mining claim or claims
located under the general mining laws, including lands
conveyed prior to enactment of this paragraph.
Effective upon the date of enactment of this paragraph,
the Secretary, acting through the Bureau of Land
Management and in a manner consistent with section
14(g), shall transfer to the [regional corporation]
Regional Corporation administration of all mining
claims determined to be entirely within lands conveyed
to that corporation. Any person holding such mining
claim or claims shall meet such requirements of the
general mining laws and section 314 of the Federal Land
Management and Policy Act of 1976 (43 U.S.C. 1744),
except that any filings that would have been made with
the Bureau of Land Management if the lands were within
Federal ownership shall be timely made with the
appropriate [regional corporation] Regional
Corporation. The validity of any such mining claim or
claims may be contested by the [regional corporation]
Regional Corporation, in place of the United States.
All contest proceedings and appeals by the mining
claimants of adverse decisions made by the [regional
corporation] Regional Corporation shall be brought in
Federal District Court for the District of Alaska.
Neither the United States nor any Federal agency or
official shall be named or joined as a party in such
proceedings or appeals. All revenues from such mining
claims received after passage of this paragraph shall
be remitted to the [regional corporation] Regional
Corporation subject to distribution pursuant to section
7(i) of this Act, except that in the event that the
mining claim or claims are not totally within the lands
conveyed to the [regional corporation] Regional
Corporation, the [regional corporation] Regional
Corporation shall be entitled only to that proportion
of revenues, other than administrative fees, reasonably
allocated to the portion of the mining claim so
conveyed. The provisions of this section shall apply to
Haida Corporation and the Haida Traditional Use Sites,
which shall be treated as a Regional Corporation for
the purposes of this paragraph, except that any
revenues remitted to Haida Corporation under this
section shall not be subject to distribution pursuant
to section 7(i) of this Act.
* * * * * * *
relation to other programs
Sec. 29. (a) * * *
* * * * * * *
(c) In determining the eligibility of a household, an
individual Native, or a descendant of a Native (as defined in
section 3(r)) to--
(1) * * *
* * * * * * *
(3) receive financial assistance or benefits, based
on need, under any other Federal program or federally-
assisted program,
none of the following, received from a Native Corporation,
shall be considered or taken into account as an asset or
resource:
(A) cash (including cash dividends on stock received
from a Native Corporation and on bonds received from a
Native Corporation) to the extent that it does not, in
the aggregate, exceed $2,000 per individual per annum;
(B) stock (including stock issued or distributed by a
Native Corporation as a dividend or distribution on
stock) or bonds issued by a Native Corporation which
bonds shall be subject to the protection of section
7(h) until voluntarily and expressly sold or pledged by
the shareholder subsequent to the date of distribution;
* * * * * * *
----------
SECTION 20 OF THE ALASKA LAND STATUS TECHNICAL CORRECTIONS ACT OF 1992
SEC. 20. GOLD CREEK SUSITNA ASSOCIATION, INCORPORATED ACCOUNT.
(a) * * *
* * * * * * *
(h) Establishment of the account under subsection (b) and
conveyance of land under subsection (c), if any, shall be
treated as though 3,520 acres of land had been conveyed to Gold
Creek under section 14(h)(2) of the Alaska Native Claims
Settlement Act for which rights to subsurface estate are hereby
provided to CIRI. Within one year from the date of enactment of
this subsection, CIRI shall select 3,520 acres of land from the
area designated for selection by paragraph I.B.(2)(b) of the
document identified in section 12(b) (referring to the
Talkeetna Mountains) of the Act of January 2, 1976 (43 U.S.C.
1611 note). Not more than five selections shall be made under
this subsection, each of which shall be reasonably compact and
in whole sections, except when separated by unavailable lands
or when the remaining entitlement is less than a whole section.
----------
SECTION 8126 OF THE DEPARTMENT OF DEFENSE APPROPRIATIONS ACT, 1992
Sec. 8126. (a)(1) Property as defined in section 8133 of the
Department of Defense Appropriations Act of 1991 (104 Stat.
1909) held by Federal agencies or instrumentalities and which
is not scheduled for disposition by sale prior to [October 1,
1996] October 1, 2002, as determined by such agencies or
instrumentalities shallbe, except as provided in subsection (b)
of this section, transferred to the Secretary of the Interior, at his
request, without compensation or reimbursement, for the purpose of
entering into a land exchange or exchanges with the Calista
Corporation, a corporation organized under the laws of the State of
Alaska. The Secretary is authorized to exchange such property for the
lands and interests in lands (which for purposes of this section
include lands, partial estates, and land selection rights) of equal
value identified in the document entitled ``The Calista Conveyance and
Relinquishment Document'', dated October 28, 1991 (hereinafter referred
to as ``CCRD'') and in the document entitled, ``The Calista Conveyance
and Relinquishment Document Addendum'', dated September 15, 1996
(hereinafter referred to as ``CCRD Addendum''). [The value of the lands
and interests in lands included in that document shall be determined by
the Secretary of the Interior not later than nine months after the date
of enactment of this section. In making such value determination, the
Secretary shall consider, in addition to the ``Uniform Appraisal
Standards for Federal Land Acquisitions'', the public interest values
of such lands and interests in lands, including, but not limited to,
the location of such lands and interests in lands within the boundary
of a national wildlife refuge, and statutorily authorized or mandated
exchanges with and acquisitions by the Federal Government of lands and
interests in lands in Alaska. In the event that the parties cannot
agree on the value of such lands and interests in land, the procedures
specified in subsection 206(d), of Public Law 94-579, as amended, shall
be used to establish the value: Provided, That the]
(2) The aggregate values of such lands and interests in land,
together with compensation for the considerations set forth in
the findings of this subsection, shall be the sum provided in
paragraph (6) of the CCRD Addendum. The average value per acre
of such lands and interests in lands shall be no more than
$300. Property exchanged and conveyed by the United States
pursuant to this section shall be considered and treated as
conveyances of land entitlements under 43 U.S.C. 1601 through
1642 [(except for subsections (a) through (c) and (f) through
(j) of section 1620, section 1627(b), and section 1636(d)).].
(3) The amount credited to the property account is not
subject to adjustment for minor changes in acreage resulting
from preparation or correction of the land descriptions in the
CCRD or CCRD Addendum or the exclusion of any small tracts of
land as a result of hazardous materials surveys.
(b) Prior to October 1, [1996] 2002, no property held for
sale by the Resolution Trust Corporation or the Federal Deposit
Insurance Corporation shall be transferred to the Secretary of
the Interior to carry out the purposes of this section.
(c)(1) The Secretary of the Interior shall maintain an
accounting of the value of lands and interests in lands
remaining to be conveyed or relinquished by Calista Corporation
pursuant to this section. [On October 1, 1996, the Secretary of
the Treasury shall establish a property account with an initial
balance equal to the value of lands and interests in lands
which Calista Corporation has not then conveyed or relinquished
to the United States pursuant to this section.] To the extent
such lands and interests have not been exchanged with the
United States, on January 1, 1998, the Secretary of the
Treasury shall establish a property account on behalf of
Calista Corporation. If the parties have mutually agreed to a
value as provided in subsection (a)(2), the Secretary of the
Treasury shall credit the account accordingly. In the absence
of such an agreement the Secretary of the Treasury shall credit
the account with an amount equal to 66 percent of the total
amount determined by paragraph (6) of the CCRD Addendum. The
account shall be available for use as provided in subsection
(c)(3), as follows:
(A) On January 1, 1998, an amount equal to one-half
the amount credited pursuant to this paragraph shall be
available for use as provided.
(B) On October 1, 1998, the remaining one-half of the
amount credited pursuant to this paragraph shall be
available for use as provided.
(2) On October 1, 2002, to the extent any portion of the
lands and interests in lands have not been exchanged pursuant
to subsection (a) or conveyed or relinquished to the United
States pursuant to paragraph (1), the account established by
paragraph (1) shall be credited with an amount equal to any
remainder of the value determined pursuant to paragraph (1).
(3) Subject to reduction upon conveyances pursuant to
subsection (a) of this section, upon conveyance or
relinquishment of equivalent portions of the lands referenced
in the CCRD and the CCRD Addendum, said account shall be
available [on or after October 1, 1996,] for the sale of
property by all agencies or instrumentalities of the United
States, to the same extent as is separately authorized to the
accounts described in subsection 9102(a)(2) of the Department
of Defense Appropriations Act, 1990 (103 Stat. 1151).
(4) Notwithstanding any other provision of law, Calista
Corporation or the village corporations identified in the CCRD
Addendum may assign, without restriction, any or all of the
account upon written notification to the Secretary of the
Treasury and the Secretary of the Interior.
(5) Calista will provide to the Bureau of Land Management,
Alaska State Office, appropriate documentation to enable that
office to perform the accounting required by paragraph (1) and
to forward such information, if requested by Calista, to the
Secretary of the Treasury as authorized by such paragraph.
(6) For the purpose of the determination of the applicability
of section 7(i) of the Alaska Native Claims Settlement Act (43
U.S.C. 1606(i)) to revenues generated pursuant to this section,
such revenues shall be calculated in accordance with paragraph
(5) of the CCRD Addendum.
* * * * * * *
Additional Views
The concept underlying H.R. 2000 is to develop, on a
consensus basis, non-controversial omnibus legislation which is
likely to be enacted into law, as was the case with two
previous Alaska Native ``technical amendment'' bills. Nine of
the ten sections in this bill appear to fit that model and are
the product of extensive negotiations between the Department of
the Interior, the State of Alaska, and Alaska Natives.
Section 5, however, raises a disturbing precedent by having
Congress pay greatly in excess of fair market value for lands
that are not highly desired by the U.S. Fish and Wildlife
Service as additions to the national wildlife refuge system.
Section 5 would establish, by Congressional mandate and
without regard to fair market valuation or appraisal, a payment
of $39.4 million for the acquisition of property owned by the
Calista Corporation (and three Native village corporations)
located within the Yukon Delta National Wildlife Refuge.
Calista's self-negotiated selling price of $39.4 million is
eight times greater than the U.S. Fish and Wildlife Service's
appraised value of $5 million. Moreover, the lands package
being offered by Calista has been subsequently revised, with
high value (gold-potential) lands at Uluksak River dropped, and
lands added which have not been appraised.
The second major problem is that, with the primary
exception of 10,000 surface acres at Dall Lake, the bulk of the
lands are not considered by the U.S. Fish and Wildlife Service
to be high priority acquisitions. In the case of nearly 200,000
of the acres to be acquired, the U.S. would gain title only to
subsurface lands which have little chance of development. The
USF&WS views acquisition of these subsurface lands as having no
direct benefit to fish and wildlife surface habitat. The agency
had no input in the original authorization for this acquisition
which was not approved by this Committee, but rather slipped
through Congress without hearings as a legislative rider in the
fiscal Year 1992 Defense Appropriations Act [Section 8126 of
Public Law 102-172].
I recognize that the Calista Native region faces difficult
economic and social challenges, I have supported previous
actions by this Committee to assist Alaska Natives, for
example, by including the Community Development Quota program
in the Magnuson Act reauthorization, thus assuring that a fair
portion of the fisheries resources are reserved to benefit
communities in Western Alaska. And I also recognize that the
enormous Yukon Delta National Wildlife Refuge provides critical
wetlands habitat for migratory waterfowl on the Pacific Flyway.
But Congress should recognize this proposed acquisition for
what it is: a gift to Alaska Native Corporations, thinly
disguised as a land acquisition of dubious merit, courtesy of
the U.S. taxpayers. As the Department of the Interior stated in
its views on H.R. 2000 on September 30, 1997: ``[w]hile we
cannot support the specific values assigned by this bill for
this exchange, because they are for considerably more than an
appraised value and would jeopardize other land exchanges in
Alaska, we do not oppose having Congress provide Calista with
an economic and social development grant to accompany the
appraised value land payment.''
To put the magnitude of the proposed Calista acquisition in
perspective, in Fiscal Year 1997, Congress appropriated only
$44.5 million from the Land and Water Conservation Fund for
national wildlife refuge land acquisition. By granting $39.4
million to Calista, this bill would allocate to one dubious
acquisition in one state nearly the amount spent on refuge
acquisition in the entire nation.
CBO's cost estimate concludes that paying Calista in excess
of the $5 million appraised value would increase direct
spending and result in a loss of $34 million in receipts from
federal property sales. A legislative rider in the FY 1990
Defense Appropriations Act [Section 9102 of Public Law 101-165]
expanded the applicable definition of federal property to
include securities issued by the Treasury, essentially allowing
Calista to receive cash without bidding on surplus federal
property.
George Miller.