[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

                                _______
                                

  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.

                                
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