[House Report 108-368]
[From the U.S. Government Publishing Office]



108th Congress                                                   Report
                        HOUSE OF REPRESENTATIVES
 1st Session                                                    108-368

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        COWLITZ INDIAN TRIBE DISTRIBUTION OF JUDGMENT FUNDS ACT

                                _______
                                

 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. 2489]

      [Including cost estimate of the Congressional Budget Office]

  The Committee on Resources, to whom was referred the bill 
(H.R. 2489) to provide for the distribution of judgment funds 
to the Cowlitz Indian Tribe, 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. COWLITZ INDIAN TRIBE DISTRIBUTION OF JUDGMENT FUNDS ACT.

  This Act shall be known as the ``Cowlitz Indian Tribe Distribution of 
Judgment Funds Act''.

SEC. 2. DEFINITIONS.

  For the purpose of this Act--
          (1) The term ``current judgment fund'' means the funds 
        awarded by the Indian Claims Commission Docket No. 218 and all 
        interest accrued thereon as of the date of the enactment of 
        this Act.
          (2) The term ``initial interest'' means the interest on the 
        funds awarded by the Indian Claims Commission Docket No. 218 
        during the time period from one year before the date of the 
        enactment of this Act through the date of the enactment of this 
        Act.
          (3) The term ``principal'' means the funds awarded by the 
        Indian Claims Commission Docket No. 218 and all interest 
        accrued thereon as of one year before the date of the enactment 
        of this Act.
          (4) The term ``Secretary'' means the Secretary of the 
        Interior.
          (5) The term ``tribe'' means the Cowlitz Indian Tribe of 
        Washington, which was extended Federal acknowledgment by the 
        United States Department of the Interior on December 31, 2001, 
        pursuant to part 83 of title 25, Code of Federal Regulations.
          (6) The term ``tribal member'' means an individual who is an 
        enrolled member of the Cowlitz Indian Tribe pursuant to tribal 
        enrollment procedures and requirements.
          (7) The term ``tribe's governing body'' means the Cowlitz 
        Tribal Council, which is the tribe's governing body under the 
        tribe's Constitution.
          (8) The term ``tribal elder'' means any tribal member who was 
        62 years of age or older as of February 14, 2000.

SEC. 3. JUDGMENT DISTRIBUTION PLAN.

  Notwithstanding the Indian Tribal Judgment Funds Use or Distribution 
Act (25 U.S.C. 1401, et seq.), or any plan prepared or promulgated by 
the Secretary pursuant to that Act, the judgment funds awarded in 
Indian Claims Commission Docket No. 218 and interest accrued thereon as 
of the date of the enactment of this Act shall be distributed and used 
in accordance with this Act.

SEC. 4. DISTRIBUTION AND USE OF FUNDS.

  (a) Principal Preserved After Elderly Assistance and Tribal 
Administration Payments.--(1) Except as provided in subsection (b), the 
principal shall not be distributed under this Act. Only the interest 
earned on the undistributed principal may be used to fund such 
programs. There will be no distribution of any funds other than as 
specified in this Act.
  (2) The Secretary shall--
          (A) maintain undistributed current judgment funds in an 
        interest-bearing account in trust for the tribe; and
          (B) disburse principal or interest in accordance with this 
        Act not later than 30 days after receipt by the Northwest 
        Regional Director, Bureau of Indian Affairs, of a request by 
        the tribe's governing body for such disbursement of funds.
  (b) Elderly Assistance Program.--(1) From the current judgment fund, 
the Secretary shall set aside 20 percent for an elderly assistance 
payment. The Secretary shall provide one elderly assistance payment to 
each enrolled tribal elder not later than 30 days after all of the 
following have occurred:
          (A) The tribe's governing body has compiled and reviewed for 
        accuracy a list of all enrolled tribal members that are both a 
        minimum of one-sixteenth Cowlitz blood and 62 years of age or 
        older as of February 14, 2000.
          (B) The Secretary has verified the blood quantum and age of 
        the tribal members identified on the list prepared pursuant to 
        subparagraph (A).
          (C) The tribe's governing body has made a request for 
        disbursement of judgment funds for the elderly assistance 
        payment.
  (2) If a tribal elder eligible for an elderly assistance payment dies 
before receiving payment under this subsection, the money which would 
have been paid to that individual shall be added to and distributed in 
accordance with the emergency assistance program under subsection (c).
  (3) The Secretary shall pay all costs of distribution under this 
subsection out of the amount set aside under paragraph (1).
  (c) Emergency Assistance Program.--From the principal, the Secretary 
shall set aside 10 percent for the Emergency Assistance Program. 
Beginning the second year after the date of the enactment of this Act, 
interest earned on such sum shall be distributed annually in a lump sum 
to the tribe's governing body and will be used to provide emergency 
assistance for tribal members. 10 percent of the initial interest shall 
be available upon the date of the enactment of this Act to fund the 
program for the first year after the date of the enactment of this Act.
  (d) Education, Vocational, and Cultural Training Program.--From the 
principal, the Secretary shall set aside 10 percent for an Education, 
Vocational and Cultural Training Program. Beginning the second year 
after the date of the enactment of this Act, interest earned on such 
sum shall be distributed annually in a lump sum to the tribe's 
governing body and will be used to provide scholarships to tribal 
members pursuing educational advancement, including cultural and 
vocational training. 10 percent of the initial interest shall be 
available upon the date of the enactment of this Act to fund the 
program for the first year after the date of the enactment of this Act.
  (e) Housing Assistance Program.--From the principal, the Secretary 
shall set aside 5 percent for the Housing Assistance Program. Beginning 
the second year after the date of the enactment of this Act, interest 
earned on such sum shall be disbursed annually in a lump sum to the 
tribe's governing body and may be added to any existing tribal housing 
improvements programs to supplement them or it may be used in a 
separate Housing Assistance Program to be established by the tribe's 
governing body. 5 percent of the initial interest shall be available 
upon the date of the enactment of this Act to fund the program for the 
first year after the date of the enactment of this Act.
  (f) Economic Development, Tribal, and Cultural Centers.--From the 
principal, the Secretary shall set aside 21.5 percent for economic 
development and, if other funding is not available or not adequate (as 
determined by the tribe), for the construction and maintenance of 
tribal and cultural centers. Beginning the second year after the date 
of the enactment of this Act, interest earned on such sum shall be 
disbursed annually in a lump sum to the tribe's governing body and 
shall be used for the following, with 21.5 percent of the initial 
interest available upon the date of the enactment of this Act to fund 
the program for the first year after the date of the enactment of this 
Act:
          (1) Property acquisition for business or other activities 
        which are likely to benefit the tribe economically or provide 
        employment for tribal members.
          (2) Business development for the tribe, including 
        collateralization of loans for the purchase or operation of 
        businesses, matching funds for economic development grants, 
        joint venture partnerships, and other similar ventures, which 
        are likely to produce profits for the tribe. All business loans 
        shall pay principal and interest back to the Economic 
        Development program for reinvestments and business profits 
        shall go to the tribe's general fund for uses to be determined 
        by the tribe's governing body.
          (3) Design, construction, maintenance, and operation of 
        tribal and cultural centers.
  (g) Natural Resources.--From the principal, the Secretary shall set 
aside 7.5 percent for natural resources. Beginning the second year 
after the date of the enactment of this Act, interest earned on such 
sum shall be disbursed annually in a lump sum to the tribe's governing 
body and may be added to any existing tribal natural resource program 
to enhance the tribe's use and enjoyment of existing and renewable 
natural resources within the tribe's lands. 7.5 percent of the initial 
interest shall be available upon the date of the enactment of this Act 
to fund the program for the first year after the date of the enactment 
of this Act.
  (h) Cultural Resources.--From the principal, the Secretary shall set 
aside 4 percent for cultural resources. Beginning the second year after 
the date of the enactment of this Act, interest earned on such sum 
shall be distributed annually in a lump sum to the tribe's governing 
body and shall be used to maintain artifacts, collect documents, 
archive, and identify cultural sites of tribal significance. 4 percent 
of the initial interest shall be available upon the date of the 
enactment of this Act to fund the program for the first year after the 
date of the enactment of this Act.
  (i) Health.--From the principal, the Secretary shall set aside 21 
percent for health. Beginning the second year after the date of the 
enactment of this Act, interest earned on such sum shall be disbursed 
annually in a lump sum to the tribe's governing body and shall be used 
for the health needs of the tribe. 21 percent of the initial interest 
shall be available upon the date of the enactment of this Act to fund 
the program for the first year after the date of the enactment of this 
Act.
  (j) Tribal Administration Program.--From the principal, the Secretary 
shall set aside 21 percent for tribal administration. 21 percent of the 
initial interest and such of the principal sum set aside for this 
program as required to fund the first year of this program at $150,000, 
the sum of $150,000 shall be immediately disbursed to the tribe for the 
purposes of funding tribal administration for the first year after the 
date of the enactment of this Act. Beginning the second year after the 
date of the enactment of this Act, interest earned on the remaining 
principal set aside under this subsection shall be disbursed annually 
in a lump sum to the tribe's governing body for operating costs of the 
tribe's governing body, including travel, telephone, cultural, and 
other expenses incurred in the conduct of the tribe's affairs, and 
legal fees as approved by the tribe's governing body.
  (k) General Conditions.--The following conditions will apply to the 
management and use of all funds available under this Act by the tribe's 
governing body:
          (1) No amount greater than 10 percent of the interest earned 
        on the principal designated for any program under this Act may 
        be used for the administrative costs of any of that program, 
        except those programs operated pursuant to subsections (i) and 
        (j).
          (2) No service area is implied or imposed under any program 
        under this Act. If the costs of administering any program under 
        this Act for the benefit of tribal members living outside the 
        tribe's Indian Health Service area are greater than 10 percent 
        of the interest earned on the principal designated for that 
        program, the tribe's governing body may authorize the 
        expenditure of such funds for that program.
          (3) Before any expenditures, the tribe's governing body must 
        approve all programs and shall publish in a publication of 
        general circulation regulations which provide standards and 
        priorities for programs established in this Act.
          (4) Section 7 of the Indian Tribal Judgment Funds Use or 
        Distribution Act (25 U.S.C. 1407) shall apply to funds 
        available under this Act.
          (5) Any tribal member who feels he or she has been unfairly 
        denied the right to take part in any program under this Act may 
        appeal to the tribal secretary. The tribal secretary shall 
        bring the appeal to the tribe's governing body for resolution. 
        The resolution shall be made in a timely manner and the tribal 
        secretary at that time shall respond to the tribal member.

                          PURPOSE OF THE BILL

    The purpose of H.R. 2489 is to provide for the distribution 
of judgment funds to the Cowlitz Indian Tribe.

                  BACKGROUND AND NEED FOR LEGISLATION

    The Cowlitz Indian Tribe has lands in Western Washington 
and the over 1,000 enrolled members are commonly divided into 
two groups, the Taidnapam, or Upper Cowlitz, and the Lower 
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.
    On March 23, 1973, the Indian Claims Commission ruled in 
favor of the Cowlitz Tribe of Indians, stating that their 
aboriginal title of lands had been taken from them and they 
deserved compensation for these lands. The Commission gave the 
Tribe compensation for the fair market value of their lands as 
delineated in 1855.
    H.R. 2489 will create a judgment distribution plan that 
follows the Indian Tribal Judgment Funds Use or Distribution 
Act, which dictates the manner in which funds can be utilized. 
More precisely, H.R. 2489 creates a specific plan under which 
the Secretary of the Interior sets aside specific percentages 
of the judgment funds for a multitude of uses for the Tribe. 
These uses will include programs such as elderly assistance, 
scholarships, housing assistance, and economic development.

                            COMMITTEE ACTION

    H.R. 2489 was introduced on June 17, 2003, by Congressman 
Brian Baird (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 Pombo offered an 
amendment to make technical corrections to the bill, including 
slightly changing the extent to which the percentages of the 
judgment funds were rounded. 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. Cowlitz Indian Tribe Distribution of Judgment Funds Act

    This section provides short title of the bill.

Section 2. Definitions

    This section defines multiple terms, including ``initial 
interest,'' and ``principal'' to better differentiate the ways 
in which the fund will be utilized.

Section 3. Judgment distribution plan

    This section states that the funds described in Indian 
Claims Commission Docket No. 218 will be distributed and used 
in accordance with the Indian Tribal Judgment Funds Use or 
Distribution Act.

Section 4. Distribution and use of funds

    This section delineates the various uses of the funds as 
well as the percentage of the larger judgment fund that will 
apply. The programs created include: an elderly assistance 
program; an emergency assistance program; an education, 
vocational, and cultural program; a housing assistance program; 
an economic development, tribal and cultural centers funding 
stream; a natural resources use and enjoyment program; a 
cultural resources fund; a general tribal health fund; and a 
tribal administration program. This section also defines the 
conditions which will apply to the management and use of the 
funds available under the bill.

            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. 2489, the Cowlitz 
Indian Tribe Distribution of Judgment Funds 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,
                                       Douglas Holtz-Eakin,
                                                          Director.
    Enclosure.

H.R. 2489--Cowlitz Indian Tribe Distribution of Judgment Funds Act

    H.R. 2489 would direct the Secretary of the Interior to 
distribute certain judgments awards held in trust funds on 
behalf of the Cowlitz Indian Tribe. About $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. 2489 would allow the tribe to withdraw 20 
percent of the total fund to assist the elderly and also 
withdraw the interest on the fund for various other programs to 
benefit the tribe. (In total, about $12 million would be 
withdrawn.) About $1 million would remain in trust funds, and 
the interest that accrues on that amount could be withdrawn by 
the tribe in future years.
    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. 2489 would have no effect on the federal budget.
    H.R. 2489 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 Cowlitz 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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