[Senate Report 106-277]
[From the U.S. Government Publishing Office]
Calendar No. 526
106th Congress Report
SENATE
2d Session 106-277
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AMENDING THE INDIAN EMPLOYMENT, TRAINING, AND RELATED SERVICES
DEMONSTRATION ACT OF 1992, TO EMPHASIZE THE NEED FOR JOB CREATION ON
INDIAN RESERVATIONS, AND FOR OTHER PURPOSES
_______
May 3, 2000.--Ordered to be printed
_______
Mr. Campbell, from the Committee on Indian Affairs, submitted the
following
R E P O R T
[To accompany S. 1509]
The Committee on Indian Affairs, to which was referred the
bill (S. 1509) to amend the Indian Employment, Training, and
Related Services Demonstration Act of 1992, to emphasize the
need for job creation on Indian reservations, and for other
purposes, having considered the same, reports favorably thereon
with amendments and recommends that the bill (as amended) do
pass.
Purpose
The purpose of S. 1509 is to amend Public Law 102-477, the
Indian Employment, Training, and Related Services Demonstration
Act of 1992 (codified at 25 U.S.C. Sec. Sec. 3401-3417, and
hereinafter referred to as the ``477 program''). Among other
things, the amendments proposed in S. 1509 expand the programs
eligible for inclusion in the 477 program, and emphasize the
need for job creation on Indian reservations.
Background
Throughout the 1970's and 1980's, Congress authorized a
number of employment training programs to address the
unemployment problem that existed throughout the nation. Within
each of these programs, Congress reserved funds exclusively for
and allocated funds directly to tribes pursuant to the federal
government's special trust relationship with tribes. When
enacting these tribal-specific employment training programs,
Congress intended to increase the economic self-sufficiency of
tribal governments and their communities. However, many tribes
were not able to take advantage of the programs because of the
great number of regulations, filing and reporting requirements
required by each program. Additionally, the small amounts
awarded under each grant relative to the significant time and
paperwork burdens were often prohibitive and served to detract
from the overall effectiveness of these programs. The 477
program was developed to provide tribes with a mechanism to
take full advantage of the wide variety of employment training
programs, while minimizing administrative time and costs, and
by reducing federal reporting and paperwork requirements.
Since its enactment, the 477 program has become one of the
few successful economic development programs in Indian country.
The program was enacted to address the severe problems of
unemployment and poverty faced by most Native American
communities. The program permits tribal governments to
consolidate formula funded employment, training and related
programs into one streamlined, efficient plan designed to meet
tribal specific employment needs.
Currently, thirty-nine (39) tribes and Alaska Native
organizations participate in the 477 program, representing 211
federally recognized tribes. All of the tribes participating in
the program report that they are providing more jobs and better
quality services to tribal members while reducing paper work
and related administrative costs.
The current 477 program authorizes the Secretary of the
Department of Interior, in collaboration with the Secretaries
of the Departments of Education, Health and Human Services, and
Labor to review for approval tribal plans proposing to
integrate formula funded employment, training and related
services programs. Integration of these programs permits tribes
to more efficiently administer employment training and related
services and is designed to reduce unemployment in tribal
communities, while serving the federal policy of Indian self-
determination. A tribal plan must: identify programs to be
integrated; describe a strategy identifying potential
employment opportunities on and near the tribe's service area,
and services to be provided; include a projected budget;
identify tribal agencies involved in the delivery of services;
identify necessary waivers; and be approved by the governing
body of the tribe. Following consultation with other
departmentheads, the Secretary is required to approve or reject the
tribal plan within ninety (90) days after receipt of the tribe's plan.
If disapproved, the tribe has an opportunity to amend its plan or
petition for reconsideration.
According to the Bureau of Indian Affairs (BIA), as of
April 19, 2000 more than $38 million of federal funding had
been pooled by participating agencies under the program. The
record shows that the 477 program has been successful, and
should be expanded and strengthened. An oversight hearing, held
by the Senate Committee on Indian Affairs on May 13, 1997,
revealed several concerns with the program's administration and
certain limitations that prevented broad implementation of the
program. Additionally, the implementation of the Personal
Responsibility and Work Opportunity Reconciliation Act of 1996,
Pub. Law 104-193, has made successful implementation of the 477
program a high priority for tribal governments. Known as the
``welfare reform'' law, this initiative places primary emphasis
on securing and keeping gainful employment. Because the
centerpiece of the legislation is work, the 477 program plays a
critical role in helping tribes make the transition to an
employment-oriented framework. S. 1509 was developed to
specifically address those concerns.
Section-by-Section Analysis
Section 1. Short Title. The title of the bill is the Indian
Employment, Training and Related Services Demonstration Act
Amendments of 1999.
Section 2. Findings, Purposes. This section recognizes that
tribes participating in the 477 program have improved the
quality of employment-related services delivered to their
members while reducing administrative costs, paper work and
time. The purpose of this Act is to improve the effectiveness
of Indian employment, training, and related services consistent
with the policies of self-determination and self-governance.
Section 3. Amendments to the Indian Employment, Training
and Related Services Demonstration Act of 1992.
(b) Programs Affected. This section broadens the scope of
programs that a tribe may choose to include in its 477 program,
increasing flexibility and strengthening the service delivery
capability of tribal governments. This amendment would allow
both Indian adult and youth programs to be integrated under the
477 program. In addition, job creation activities are also
eligible to participate in the program.
(c) Plan Review. This subsection amends Section 7 of Pub.
Law 102-477 which currently states that the:
* * * Secretary of the affected department shall have
the authority to waive any regulation, policy, or
procedure promulgated by that department that has been
so identified by such tribal government or department,
unless the Secretary of the affected department
determines that such a waiver is inconsistent with
the purposes of this Act or those provisions of the statute
from which the program involved derives its authority. * * *
Section 3(c) amends the sentence by adding the words
``statutory requirement,'' after the words ``authority to waive
any''. The intent of this amendment is to place tribal
governments on par with state entities for which many statutes
provide broad statutory waiver capability. Currently, there are
programs that cannot be integrated into the 477 program because
of certain statutory requirements. With the increased waiver
authority, this amendment will broaden the number of programs
that may be integrated into the 477 program.
It is not the Committee's intent to vest the Secretary of
the Interior with authority to waive statutory requirements,
regulations, policies, or procedures that are within the
authority of the Secretaries of other Departments. All waiver
authority continues to be within the sole discretion of the
Secretary of the affected department. The amended waiver
authority in S. 1509 is intended to work in the same manner as
the existing waiver provision and each Department will act on
waivers involving its own programs. The decisions on tribal
waiver requests are then communicated to the tribes as part of
the Secretary of the Interior's action in considering tribal
plans.
(d) Plan Approval. Existing law requires the Secretary to
permit tribal applicants to amend disapproved plans or to
petition for reconsideration. This amendment would additionally
direct the Secretary to reconsider disapproval of requested
statutory waivers within the ninety (90) day limit. Thus, all
affected Departments must complete their review of any waiver
requests and notify the Department of Interior within this time
frame.
(e) Job creation activities. S. 1509 strengthens the
ability of tribes to use their resources to create jobs for
Indians and Alaska Natives. The development of present and
future workforce skills is frustrated by the absence of job
opportunities.
This amendment would add language to section 9 of the Act
which permits tribes to use a percentage of their 477 funds to
create employment opportunities, including private sector
training placement. The permitted percentage is either ten
percent (10%) or a percentage based on the tribal community's
unemployment rate up to twenty-five percent (25%), whichever is
greater.
Section 4. Report on Expanding the Opportunities for
Program Integration. Within a year of enactment of this
legislation, the Interior Secretary, the Secretary of Health
and Human Services and the Secretary of Labor, along with
tribes and organizations participating in the 477 program,
shall submit a report on the opportunities for expanding the
477 program, including the integration of human resources
development and economic development programs. This report must
contain a feasibility analysis regarding the establishment of
Joint Funding Agreements for tribes to access and coordinate
federal funds from all agencies for human resources
development, physical infrastructure development, and economic
development. The report shall recommendboth specific programs
or activities that might be integrated under the 477 program, and the
removal of any possible statutory barriers that are impeding full
implementation of the 477 program.
Section 5. Effective Date. This subsection requires that
all amendments take effect upon enactment of this bill into
law.
Legislative History
S. 1509, the Indian Employment, Training and Related
Services Demonstration Act Amendments of 1999, was introduced
on August 5, 1999, by Senator Campbell. The bill was referred
to the Committee on Indian Affairs. On March 29, 2000, the
Committee on Indian Affairs convened a business meeting to
consider S. 1509 and other measures that had been referred to
it. The Committee favorably reported S. 1509 with amendments to
the full Senate.
Committee Recommendation and Tabulation of Vote
On March 29, 2000, the Committee on Indian Affairs, in an
open business session, adopted S. 1509 by voice vote and
ordered the bill, as amended, reported favorably to the Senate.
Cost and Budgetary Consideration
The cost estimate for S. 1509 as calculated by the
Congressional Budget Office, is set forth below:
U.S. Congress,
Congressional Budget Office,
Washington, DC, April 12, 2000.
Hon. Ben Nighthorse Campbell,
Chairman, Committee on Indian Affairs,
U.S. Senate, Washington, DC.
Dear Mr. Chairman: The Congressional Budget Office has
prepared the enclosed cost estimate for S. 1509, the Indian
Employment, Training, and Related Services Demonstration Act
Amendments of 1999.
If you wish further details on this estimate, we will be
pleased to provide them. The CBO staff contact is Lanette
Keith.
Sincerely,
Steven Lieberman
(For Dan L. Crippen, Director).
Enclosure.
CONGRESSIONAL BUDGET OFFICE COST ESTIMATE
S. 1509--Indian Employment, Training, and Related Services
Demonstration Act Amendments of 1999
S. 1509 would make several technical corrections to the
Indian Employment, Training, and Related Services Demonstration
Act of 1992. That legislation allows tribes to consolidate
funds received under various formula grant programs for
employment, training, and education into a single demonstration
project. CBO estimates that enacting S. 1509 would have no
significant impact on the federal budget. The bill would not
affect direct spending or receipts; therefore, pay-as-you-go
procedures would not apply. S. 1509 contains no
intergovernmental or private-sector mandates as defined in the
Unfunded Mandates Reform Act and would impose no costs on
state, local, or tribal governments.
S. 1509 would expand the use of demonstration program funds
and would specify the percentage of formula grant programs that
could be used for training purposes. Based on information from
the Bureau of Indian Affairs, CBO expects that implementing
this legislation would not change the amounts authorized to be
appropriated to the tribes for employment services. Therefore,
we estimate that enacting S. 1509 would have no significant
impact on the federal budget.
The CBO staff contact is Lanette Keith. This estimate was
approved by Peter H. Fontaine, Deputy Assistant Director for
Budget Analysis.
Regulatory Impact Statement
Paragraph 11(b) of rule XXVI of the Standing Rules of the
Senate requires that each report accompanying a bill to
evaluate the regulatory paperwork impact that would be incurred
in implementing the legislation. The Committee has concluded
that enactment of S. 1509 will create only de minimis
regulatory or paperwork burdens.
Executive Communications
The Committee has received no official communication from
the Administration on the provisions of the bill.
Changes in Existing Law
In compliance with subsection 12 of rule XXVI of the
Standing Rules of the Senate, changes in existing law made by
the bill are required to be set out in the accompanying
Committee report. The Committee finds that enactment of S. 1509
will result in the following changes to 25 U.S.C.
Sec. Sec. 3401 et seq., with existing language which is to be
deleted in brackets and new language to be added in italic:
25 U.S.C. Sec. 3404
Programs affected.--The programs that may be integrated in
a demonstration project under any such plan referred to in
section 3403 of this title shall include any program under
which an Indian tribe is eligible for receipt of funds under a
statutory or administrative formula for the purposes of [job
training, tribal work experience, employment opportunities, or
skill development, or any program designed for the enhancement
of job opportunities or employment training.] assisting Indian
youth and adults to succeed in the work force, encouraging
self-sufficiency, familiarizing Indian Youth and adults with
the world of work, facilitating the creation of job
opportunities and any services related to these activities.
25 U.S.C. Sec. 3406
Plan review.--Upon receipt of the plan from a tribal
government, the Secretary of the Interior shall consult with
the Secretary of each Federal [department] agency providing
funds to be used to implement the plan, and with the tribal
government submitting the plan. The parties so consulting shall
identify any waivers of statutory requirements or of Federal
[departmental] agency regulations, policies, or procedures
necessary to enable the tribal government to implement its
plan. Notwithstanding any other provision of law, the Secretary
of the affected [department] agency shall have the authority to
waive any statutory requirement, regulation, policy, or
procedure promulgated by that [department] agency that has been
so identified by such tribal government or department, unless
the Secretary of the affected [department] agency determines
that such a waiver is inconsistent with the purposes of this
chapter or those provisions of the statute from which the
program involved derives its authority which are specifically
applicable to Indian programs.
25 U.S.C. Sec. 3407
Plan approval.--Within 90 days after the receipt of a
tribal government's plan by the Secretary, the Secretary shall
inform the tribal government, in writing, of the Secretary's
approval or disapproval of the plan including any request for a
waiver that is made as part of the plan submitted by the tribal
government. If the plan is disapproved, the tribal government
shall be informed, in writing, of the reasons for the
disapproval and shall be given an opportunity to amend its plan
or to petition the Secretary to reconsider such disapproval
including reconsidering the disapproval of any waiver requested
by the Indian tribe.
25 U.S.C. Sec. 3408
Job creation activities authorized.--(a) In General._The
plan submitted by a tribal government may involve the
expenditure of funds for the creation of employment
opportunities and for the development of the economic resources
of the tribal government or of individual Indian people if such
expenditures are consistent with an overall regional economic
activity which has a reasonable likelihood of success and
consistent with the purposes specifically applicable to Indian
programs in the statute under which the funds are authorized.
(b) Job Creation Opportunities.--
(1) In general.--Notwithstanding any other provisions
of law, including any requirement of a program that is
integrated under a plan under this Act, a tribal
government may use a percentage of the funds made
available under this Act (as determined under paragraph
(2)) for the creation of employment opportunities,
including private sector training placement under
section 10.
(2) Determination of percentage.--The percentage of
funds that a tribal government may use under this
subsection is the greater of--
(A) the rate of unemployment in the service
area of the tribe up to a maximum of 25
percent; or
(B) 10 percent.
(c) Limitation.--The funds used for an expenditure
described in subsection (a) may only include funds made
available to the Indian tribe by a Federal agency under a
statutory or administrative formula.