[House Report 108-367]
[From the U.S. Government Publishing Office]
108th Congress Report
HOUSE OF REPRESENTATIVES
1st Session 108-367
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PROVIDING FOR THE USE AND DISTRIBUTION OF THE FUNDS AWARDED TO THE
QUINAULT INDIAN NATION UNDER UNITED STATES CLAIMS COURT DOCKETS 772-71,
773-71, 774-71, AND 775-71, AND FOR OTHER PURPOSES
_______
November 17, 2003.--Committed to the Committee of the Whole House on
the State of the Union and ordered to be printed
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Mr. Pombo, from the Committee on Resources, submitted the following
R E P O R T
[To accompany H.R. 2425]
[Including cost estimate of the Congressional Budget Office]
The Committee on Resources, to whom was referred the bill
(H.R. 2425) to provide for the use and distribution of the
funds awarded to the Quinault Indian Nation under United States
Claims Court Dockets 772-71, 773-71, 774-71, and 775-71, 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 all after the enacting clause and insert the
following:
SECTION 1. DISTRIBUTION OF JUDGMENT FUNDS.
(a) Funds To Be Deposited Into Separate Accounts.--
(1) In general.--Subject to section 2, not later than 30 days
after the date of enactment of this Act, the funds appropriated
on September 19, 1989, in satisfaction of an award granted to
the Quinault Indian Nation under Dockets 772-71, 773-71, 774-
71, and 775-71 before the United States Claims Court, less
attorney fees and litigation expenses, and including all
interest accrued to the date of disbursement, shall be
distributed by the Secretary and deposited into 3 separate
accounts to be established and maintained by the Quinault
Indian Nation (referred to in this Act as the ``Tribe'') in
accordance with this subsection.
(2) Account for principal amount.--
(A) In general.--The Tribe shall--
(i) establish an account for the principal
amount of the judgment funds; and
(ii) use those funds to establish a Permanent
Fisheries Fund.
(B) Use and investment.--The principal amount
described in subparagraph (A)(i)--
(i) except as provided in subparagraph
(A)(ii), shall not be expended by the Tribe;
and
(ii) shall be invested by the Tribe in
accordance with the investment policy of the
Tribe.
(3) Account for investment income.--
(A) In general.--The Tribe shall establish an account
for, and deposit in the account, all investment income
earned on amounts in the Permanent Fisheries Fund
established under paragraph (2)(A)(ii) after the date
of distribution of the funds to the Tribe under
paragraph (1).
(B) Use of funds.--Funds deposited in the account
established under subparagraph (A) shall be available
to the Tribe--
(i) subject to subparagraph (C), to carry out
fisheries enhancement projects; and
(ii) pay expenses incurred in administering
the Permanent Fisheries Fund established under
paragraph (2)(A)(ii).
(C) Specification of projects.--Each fisheries
enhancement project carried out under subparagraph
(B)(i) shall be specified in the approved annual budget
of the Tribe.
(4) Account for income on judgment funds.--
(A) In general.--The Tribe shall establish an account
for, and deposit in the account, all investment income
earned on the judgment funds described in subsection
(a) during the period beginning on September 19, 1989,
and ending on the date of distribution of the funds to
the Tribe under paragraph (1).
(B) Use of funds.--
(i) In general.--Subject to clause (ii),
funds deposited in the account established
under subparagraph (A) shall be available to
the Tribe for use in carrying out tribal
government activities.
(ii) Specification of activities.--Each
tribal government activity carried out under
clause (i) shall be specified in the approved
annual budget of the Tribe.
(b) Determination of Amount of Funds Available.--Subject to
compliance by the Tribe with paragraphs (3)(C) and (4)(B)(ii) of
subsection (a), the Quinault Business Committee, as the governing body
of the Tribe, may determine the amount of funds available for
expenditure under paragraphs (3) and (4) of subsection (a).
(c) Annual Audit.--The records and investment activities of the 3
accounts established under subsection (a) shall--
(1) be maintained separately by the Tribe; and
(2) be subject to an annual audit.
(d) Reporting of Investment Activities and Expenditures.--Not later
than 120 days after the date on which each fiscal year of the Tribe
ends, the Tribe shall make available to members of the Tribe a full
accounting of the investment activities and expenditures of the Tribe
with respect to each fund established under this section (which may be
in the form of the annual audit described in subsection (c)) for the
fiscal year.
SEC. 2. CONDITIONS FOR DISTRIBUTION.
(a) United States Liability.--On disbursement to the Tribe of the
funds under section 1(a), the United States shall bear no trust
responsibility or liability for the investment, supervision,
administration, or expenditure of the funds.
(b) Application of Other Law.--All funds distributed under this Act
shall be subject to section 7 of the Indian Tribal Judgment Funds Use
or Distribution Act (25 U.S.C. 1407).
PURPOSE OF THE BILL
The purpose of H.R. 2425 is to provide for the use and
distribution of the funds awarded to the Quinault Indian Nation
under United States Claims Court Dockets 772-71, 773-71, 774-
71, and 775-71, and for other purposes.
BACKGROUND AND NEED FOR LEGISLATION
Located on the southwest corner of the Olympia Peninsula in
the State of Washington, the Quinault Indian Nation is
comprised of 208,150 acres of land. The Tribe consists of the
Quinault tribe as well as the descendants of five other coastal
tribes in Washington: the Hoh, Quileute, Chehalis, Chinook, and
Cowlitz.
Under current law, Congress has the express authority to
disburse Tribal judgment funds. As trustee, it is the
Department of the Interior's responsibility to ensure that any
judgment award is distributed according to the terms of the
settlement agreement between parties, and that the distribution
follows the Court's order.
In 1983, in United States v. Mitchell, the Supreme Court
ruled that the federal government was accountable in money
damages for breaches of trust in connection with its management
of forest resources on lands allotted to the Quinault Tribe.
Further, on August 29, 1989, the United States Claims Court
granted an order and entry of final judgment. Within this
judgment were United States Claims Court Dockets 772-71, 773-
71, 774-71, and 775-71. The Court ordered the United States to
pay the Quinault Indian Nation a total of $600,000 for ``Tribal
Fisheries and Interests Claims'' and provided that the balance
of the judgment ``will be held by the Bureau of Indian Affairs,
in escrow for the Quinault Indian Nation, to be disbursed upon
approval of a judgment plan in accordance with 25 U.S.C.
Sec. 1402.'' H.R. 2425 will provide for the distribution of
these funds along with the judgment plan that has been agreed
to by the Tribe.
More precisely, the judgment plan in H.R. 2425 creates
three separate accounts that will be overseen by the Quinault
Tribe. One account will be put aside for those funds that have
been increasing due to accrued interest on the original
judgment amount. These will be dedicated to various tribal
government activities. A second account will be created that
includes the original award amount, which will be used to
create a Permanent Fisheries Fund. Finally, a third account
will be comprised of those funds which are amassed as a result
of investment income that is earned from the Permanent
Fisheries Fund after funds are disbursed. These monies will be
used for fisheries enhancement projects.
COMMITTEE ACTION
H.R. 2425 was introduced on June 11, 2003, by Congressman
Norman Dicks (D-WA). The bill was referred to the Committee on
Resources. On October 29, 2003, the Full Resources Committee
met to consider the bill. Congressman Richard W. Pombo offered
an amendment in the nature of a substitute to change the
legislation to mirror the language in Title III of S. 523, the
``Native American Technical Corrections Act of 2003.'' It was
adopted by unanimous consent. The bill, as amended, was then
ordered favorably reported to the House of Representatives by
unanimous consent.
SECTION-BY-SECTION ANALYSIS
Section 1. Distribution of judgment funds
This section authorizes the Quinault Nation to use the
principal amount of the judgment funds for the establishment of
a non-expendable Permanent Fisheries Fund. The investment
income earned on this fund after the date the funds are
disbursed to the Tribe under paragraph 3(A) is available for
fisheries enhancement projects and the cost of administering
the fund. This section also requires the Tribe to maintain the
records and investment activities of the three accounts in the
bill. These records must be audited annually.
Section 2. Conditions for distribution
This section provides for the judgment funds to be
disbursed to the Tribe not later than 30 days after enactment
of this Act. It also relieves the United States of all trust
responsibility and liability for the investment, supervision,
administration, or expenditure of the judgment funds once the
funds are disbursed to the Tribe. Finally, the funds
distributed are subject to Section 7 of the Indian Tribal
Judgment Funds Use or Distribution Act.
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, spending
authority, credit authority, or an increase or decrease in
revenues or tax expenditures.
3. General Performance Goals and Objectives. This bill does
not authorize funding and therefore clause 3(c)(4) of rule XIII
of the Rules of the House of Representatives does not apply.
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, November 6, 2003.
Hon. Richard W. Pombo,
Chairman, Committee on Resources,
House of Representatives, Washington, DC.
Dear Mr. Chairman: The Congressional Budget Office has
prepared the enclosed cost estimate for H.R. 2425, the Quinault
Permanent Fisheries Fund Act.
If you wish further details on this estimate, we will be
pleased to provide them. The CBO staff contact is Lanette J.
Walker.
Sincerely,
Elizabeth M. Robinson
(For Douglas Holtz-Eakin, Director).
Enclosure.
H.R. 2425--Quinault Permanent Fisheries Fund Act
H.R. 2425 would direct the Secretary of the Interior to
distribute judgment awards held in trust funds on behalf of the
Quinault Indian Tribe. Over $1 million in judgments and
accumulated interest is being held in trust funds on behalf of
the tribe; however, the Secretary does not have the authority
to distribute the funds without Congressional approval. H.R.
2425 would allow the tribe to withdraw awards of $600,000 and
over $600,000 in interest from the Treasury.
These trust funds are held and managed in a fiduciary
capacity by the federal government on behalf of Indian tribes
and are treated as nonfederal funds. As a result, outlays were
recorded on the budget when the judgments were awarded to the
tribes and paid into those trust funds. Consequently, there is
no federal budget impact when the money is distributed to the
individual members of the tribes. Therefore, CBO estimates that
enacting H.R. 2425 would have no effect on the federal budget.
H.R. 2425 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.
Enactment of this legislation would benefit the Quinault Indian
Nation.
The CBO staff contact for this estimate is Lanette J.
Walker. This estimate was 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.