[Senate Report 106-277]
[From the U.S. Government Publishing Office]



                                                       Calendar No. 526
106th Congress                                                   Report
                                 SENATE
 2d Session                                                     106-277

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



 
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.

                                  
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