[House Report 106-944]
[From the U.S. Government Publishing Office]



106th Congress                                                   Report
                        HOUSE OF REPRESENTATIVES
 2d Session                                                     106-944

======================================================================



 
   PROVIDING FOR EQUITABLE COMPENSATION FOR THE CHEYENNE RIVER SIOUX 
                     TRIBE, AND FOR OTHER PURPOSES

                                _______
                                

October 6, 2000.--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 S. 964]

      [Including cost estimate of the Congressional Budget Office]

    The Committee on Resources, to whom was referred the bill 
(S. 964) to provide for equitable compensation for the Cheyenne 
River Sioux Tribe, and for other purposes, having considered 
the same, report favorably thereon without amendment and 
recommend that the bill do pass.

                          PURPOSE OF THE BILL

    The purpose of S. 964 is to provide equitable compensation 
to the Cheyenne River Sioux Tribe.

                  BACKGROUND AND NEED FOR LEGISLATION

    The purpose of S. 964 is to provide additional compensation 
to the Cheyenne River Sioux Tribe of South Dakota for the 
acquisition by the United States of 104,492 acres of tribal 
land for the construction of the Oahe Dam and Reservoir on the 
Missouri River.
    The Pick-Sloan Missouri River Basin Program was included by 
Congress in the Flood Control Act of 1944 (33 U.S.C. 701-1, et 
seq.) to increase economic development in the Missouri River 
Basin. The project was designed to provide flood control, 
irrigation, and hydro-power to that part of the Nation in 1944.
    Cheyenne River Sioux tribal lands along the Missouri River 
were confiscated for use in the construction of the Oahe Dam 
and Reservoir project. Over 104,490 acres of tribal lands were 
inundated, reservation communities were flooded, and 30 percent 
of the entire tribal population was forced to relocate from the 
fertile bottom lands along the river to much less hospitable 
upland prairie. The Tribe thereby lost its ready source of 
potable water, its ceremonial grounds, a major portion of its 
cattle herd which had no place to graze, 90 percent of its 
timber, and most of its agricultural land.
    In turn, the Tribe did not receive any of the benefits 
which the Pick-Sloan Program was designed to bring to the other 
residents of the Missouri River Valley. Unlike many South 
Dakota communities that received allocations of low-cost 
hydropower which they were able to turn into a source of 
revenue for their activities, the Tribe's request for such an 
allocation was denied. Nor did the Tribe receive any low-cost 
power for its own use. Instead, despite the generation of large 
amounts of hydropower from the Pick-Sloan power program, the 
cost of electricity on the Tribe's reservation has remained 
among the highest in the United States, burdening an already 
impoverished membership and serving as a barrier to economic 
development.
    Ten years after Pick-Sloan Missouri River Basin Program was 
enacted into law, Congress enacted legislation to provide 
compensation to the Tribe in exchange for the acquisition of 
the Tribe's lands. Non-Indians received an average of $49.22 
per acre for their agricultural lands, while the Tribe received 
only $21.49 per acre.
    Various other tribes, whose reservations on the Missouri 
River had been adversely affected by flooding caused by the 
construction of Pick-Sloan project dams, sought additional 
compensation to rectify what they also considered to have been 
woefully inadequate compensation in view of their actual 
losses. As a result, the Secretary of the Interior established 
a Joint Tribal-Federal Advisory Committee (JTAC) to examine and 
make recommendations with respect to the effects of the 
impoundment of waters under the Pick-Sloan Missouri River Basin 
Program (Oahe and Garrison Reservoirs) on the Fort Berthold and 
Standing Rock Indian Reservations in 1984. The study concluded 
that the compensation that was provided to those Tribes in the 
1950s indeed was inadequate and did not take into account the 
full extent of the Tribes' losses. Subsequently, the Congress 
asked the General Accounting Office (GAO) to review economic 
analyses prepared by consultants for the Fort Berthold and 
Standing Rock Tribes that documented what the Tribes considered 
to be the difference between the actual losses suffered as a 
result of the building of the Garrison Dam and the amount the 
Tribes received in compensation in 1952. The GAO recommended 
that the Congress base its decision on how much to provide 
additional compensation on a formula.
    In view of the JTAC study findings and the GAO review, 
Congress enacted legislation that acknowledged, first, that the 
U.S. government did not justly compensate the Tribes at Fort 
Berthold and Standing Rock when it acquired their lands and, 
second, that the Tribes were entitled to additional 
compensation. Accordingly, legislation was enacted similar to 
S. 964 to compensate the Three Affiliated Tribes of the Fort 
Berthold Reservation and the Standing Rock Sioux Tribe. In 
arriving at compensation amounts, the Congress adopted the GAO 
formula using a corporate interest rate option in its 
calculations. In 1996, Congress enacted similar legislation for 
the Crow Creek Sioux Tribe, and in 1997 Congress enacted 
similar legislation for the Lower Brule Sioux Tribe.
    The Cheyenne River Sioux Tribe legislation, S. 964, employs 
the same 1991 GAO formula used in the aforementioned 
legislation applicable to the other Tribes affected by the 
Pick-Sloan project. Using this formula, the GAO calculated the 
amount of additional compensation owed to the Tribe to be $290 
million.

                         SUMMARY OF PROVISIONS

Title I--Cheyenne River Sioux Tribe equitable compensation

    Title I, the Cheyenne River Sioux Tribe Equitable 
Compensation Act, would provide additional compensation for the 
Cheyenne River Sioux Tribe pursuant to the GAO formula in an 
amount roughly proportionate to that provided for the Fort 
Berthold, Standing Rock, Crow Creek and Lower Brule tribes.
    The bill provides for the establishment in the U.S. 
Treasury of the Cheyenne River Sioux Tribal Recovery Trust 
Fund. On the first day of the eleventh fiscal year that begins 
after the enactment of S. 964, the Secretary of the Treasury is 
directed to deposit into the Fund $290,722,958 from the General 
Fund of the Treasury, together with an additional amount that 
equals the amount of interest that would have accrued on that 
deposit had it been invested in interest-bearing obligations 
guaranteed as to both principal and interest by the United 
States, on the first day of the first fiscal year that begins 
after the date of enactment of this bill and compounded 
annually thereafter. The Secretary is to invest these funds 
only in interest-bearing obligations of the United States or in 
obligations guaranteed as to both principal and interest by the 
United States, and to deposit interest from such investments in 
the Fund.
    Beginning on the first day of the eleventh fiscal year 
after enactment, and on the first day of each fiscal year 
thereafter, the Secretary of the Treasury shall transfer the 
aggregate amount of interest on the Fund to the Secretary of 
the Interior, who shall use the money to make payments to the 
Tribe pursuant to tribal resolution. The Tribe could spend the 
interest earned on the Fund to promote its economic and 
infrastructure development, and the educational, health, 
recreational and social welfare objectives of the Tribe and its 
members. No amount of the principal could be withdrawn nor 
could any of the interest be used to make per capita payments 
to tribal members. Upon the deposit of funds, together with 
interest, into the Fund, S. 964 would extinguish all monetary 
claims which the Tribe has or may have against the United 
States for the taking of its land and property by the United 
States for the Oahe Dam and Reservoir Project.

Title II--Bosque Redondo Memorial

    Title II of S. 964 is entitled the ``Bosque Redondo 
Memorial Act''. This title would authorize $1,000,000 in fiscal 
year 2000 and $500,000 for each of fiscal years 2001 and 2002 
for use as matching grants to the State of New Mexico to create 
a memorial to the nearly 9,000 Navajo Indians who were detained 
by the United States in 1863 and forced to march 350 miles to 
Bosque Redondo, New Mexico, where they were incarcerated at 
Fort Sumner, together with members of the Mescalero Apache 
Tribe.
    In 1868, the Navajo Nation signed a treaty with the United 
States, and the survivors of the ``Long Walk'' were allowed to 
return to their reservation after surviving five years of harsh 
living conditions. The grants and State matching funds would 
provide for the construction of a memorial and visitor-
interpretive center at Fort Sumner State Monument in New Mexico 
that would offer all Americans opportunities to learn about and 
appreciate the significance of a painful episode in the history 
of the Navajo and Apache peoples' relationship with the United 
States government.
    For additional information, see Senate Report 106-217.

                            COMMITTEE ACTION

    S. 964 was introduced on May 5, 1999, by Senator Tom 
Daschle (D-SD). The bill was passed by the Senate on November 
19, 1999, with an amendment by unanimous consent. In the House 
of Representatives, the bill was referred to the Committee on 
Resources. On September 13, 2000, the Full Resources Committee 
met to mark up the bill. No amendments were offered and the 
bill was then ordered favorably reported to the House of 
Representatives by voice vote.

            COMMITTEE OVERSIGHT FINDINGS AND RECOMMENDATIONS

    Regarding clause 2(b)(1) of rule X and clause 3(c)(1) of 
rule XIII 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 this bill.

                    COMPLIANCE WITH HOUSE RULE XIII

    1. Cost of Legislation. Clause 3(d)(2) 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 this bill. However, clause 3(d)(3)(B) 
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 402 of the 
Congressional Budget Act of 1974.
    2. Congressional Budget Act. As required by clause 3(c)(2) 
of rule XIII of the Rules of the House of Representatives and 
section 308(a) of the Congressional Budget Act of 1974, this 
bill does not contain any new budget authority, credit 
authority, or an increase or decrease in revenues or tax 
expenditures. The Congressional Budget Office indicates that 
enactment of this bill will increase direct spending by an 
estimated $493 million, but that pay-as-you-go procedures do 
not apply because the spending out occur in 2011.
    3. Government Reform Oversight Findings. Under clause 
3(c)(4) of rule XIII 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 on this bill.
    4. Congressional Budget Office Cost Estimate. Under clause 
3(c)(3) of rule XIII 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 this bill from the Director of the Congressional Budget 
Office:

                                     U.S. Congress,
                               Congressional Budget Office,
                                Washington, DC, September 14, 2000.
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 S. 964, the Cheyenne 
River Sioux Tribe Equitable Compensation Act.
    If you wish further details on this estimate, we will be 
pleased to provide them. The CBO staff contacts are Lanette 
Keith (for federal costs) and Marjorie Miller (for the impact 
on state, local, and tribal governments).
            Sincerely,
                                        Steven M. Lieberman
                                    (For Dan L. Crippen, Director).
    Enclosure.

S. 964--Cheyenne River Sioux Tribe Equitable Compensation Act

    Summary: S. 964 would compensate the Cheyenne River Sioux 
Tribe--in 2011--for the taking of certain lands in South Dakota 
and would authorize appropriations for the construction of a 
memorial for the Navajo and Mescalero Apache people who were 
incarcerated at Bosque Redondo, New Mexico, in the 1800s. CBO 
estimates that implementing S. 964 would cost $2 million over 
the 2001-2005 period, assuming appropriation of the necessary 
amounts. Enacting S. 964 also would increase direct spending by 
an estimated $493 million, but pay-as-you-go procedures would 
not apply because the spending would not occur until fiscal 
year 2011.
    S. 964 contains no intergovernmental or private-sector 
mandates as defined in the Unfunded Mandates Reform Act (UMRA). 
State, local, and tribal governments might incur some costs as 
a result of S. 964's enactment, but these costs would be 
voluntary.
    Estimated cost to the Federal Government: For purposes of 
this estimate, CBO assumes that S. 964 will be enacted near the 
start of fiscal year 2001 and that the amounts necessary to 
implement the act will be appropriated each year. Estimated 
outlays are based on historical spending patterns for similar 
activities.

Direct spending

    Title I of S. 964 would provide additional compensation to 
the Cheyenne River Sioux Tribe for the taking of 104,492 acres 
of land by the federal government to construct the Oahe Dam and 
Reservoir project. Construction of the dam began in 1948 and 
compensation of about $10 million was paid to the tribe in 
1955. The act would establish the Cheyenne River Sioux Tribal 
Recovery Trust Fund and would direct the Secretary of the 
Treasury to deposit $291 million in the fund on the first day 
of fiscal year 2011. An additional deposit equal to the amount 
of interest that the fund would have earned if the fund had 
been capitalized and invested in 2001 would be made at the same 
time. CBO estimates that this additional payment would total 
$202 million, for a total deposit of $493 million in 2011. Once 
the Secretary pays these amounts, any monetary claims the tribe 
may have against the United States regarding this project would 
be extinguished. Starting in 2011, the act would allow the 
tribe to spend amounts equivalent to the annual interest earned 
on the fund pursuant to a tribal spending plan.
    The federal budget excludes trust funds that are held and 
managed in a fiduciary capacity by the federal government on 
behalf of Indian tribes. Hence, deposits to the trust fund 
established under this act would be treated as payments to a 
nonfederal entity. As a result, CBO expects that the entire 
amount deposited to the fund in 2011 would be recorded as 
budget authority and outlays in that year. Because the trust 
fund would be nonbudgetary, the subsequent use of such funds by 
the tribe would not affect federal outlays.

Spending subject to appropriation

    Title I would authorize the appropriation of such sums as 
may be necessary to cover the administrative costs for the 
Cheyenne River Sioux Tribal Recovery Trust Fund. Based on 
information from the Department of the Interior, CBO estimates 
that these costs would not be significant in any year.
    Title II would authorize the Secretary of Defense, upon the 
request of the state of New Mexico, to establish the Bosque 
Redondo Memorial within the boundaries of Fort Summer State 
Monument. The provision would authorize the Secretary to make 
grants to New Mexico for up to 50 percent of its construction 
costs. CBO estimates that the federal share of the memorial 
would cost $2 million. The act would require the state to match 
the federal contribution to be eligible for the grants. Based 
on information from the state, CBO expects these matching funds 
to be provided during 2001. Assuming appropriation of the 
necessary amounts. CBO estimates that the entire federal share 
of the cost of constructing the monument would be spent during 
the 2001-2005 period.
    Pay-as-you-go considerations: The Balanced Budget and 
Emergency Deficit Control Act sets up pay-as-you-go procedures 
for legislation affecting direct spending or receipts. For the 
purposes of enforcing pay-as-you-go procedures, only the 
effects in the budget year and the succeeding four years are 
counted. Although enacting this legislation would increase 
direct spending by an estimated $493 million, pay-as-you-go 
procedures would not apply to the act because the outlay would 
occur in fiscal year 2011.
    Estimated impact on State, local, and tribal governments: 
S. 964 contains no intergovernmental mandates as defined in 
UMRA, but it would impose some conditions on the Cheyenne River 
Sioux and on the State of New Mexico for receipt of Federal 
funds. Title I would require the tribe to prepare and adopt a 
plan for using payments from the trust fund and to obtain an 
audit of the funded expenditures. Based on information provided 
by tribal officials, CBO does not expect that these 
requirements would result in significant additional costs for 
the tribe. Title II would require New Mexico to contribute 
matching funds equal to 50 percent of the costs of constructing 
the Bosque Redondo Memorial.
    Estimated impact on the private sector: This Act contains 
no new private-sector mandates as defined in UMRA.
    Previous CBO estimate: On November 5, 1999, CBO transmitted 
an cost estimate for S. 964, a bill to provide for equitable 
compensation for the Cheyenne River Sioux Tribe, and for other 
purposes, as ordered reported by the Senate Committee on Indian 
Affairs on October 13, 1999, and subsequently amended on 
October 27, 1999. The two versions of the legislation are 
nearly identical. Differences in our cost estimates for these 
versions of the legislation reflect changes in CBO's projection 
of interest rates.
    Estimate prepared by: Federal Costs: Lanette Keith. Impact 
on State, local, and Tribal Governments: Marjorie Miller. 
Impact on the Private Sector: Lauren Marks.
    Estimate approved by: Peter H. Fontaine, Deputy Assistant 
Director for Budget Analysis.

                    COMPLIANCE WITH PUBLIC LAW 104-4

    This bill contains no unfunded mandates.

                PREEMPTION OF STATE, LOCAL OR TRIBAL LAW

    This bill is not intended to preempt any State, local or 
tribal law.

                        CHANGES IN EXISTING LAW

    If enacted, this bill would make no changes in existing 
law.

                                  
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