[Senate Report 108-404]
[From the U.S. Government Publishing Office]



                                                       Calendar No. 795
108th Congress                                                   Report
                                 SENATE
 2d Session                                                     108-404

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

 
A BILL TO ESTABLISH A NATIVE AMERICAN-OWNED FINANCIAL ENTITY TO PROVIDE 
FINANCIAL SERVICES TO INDIAN TRIBES, NATIVE AMERICAN ORGANIZATIONS, AND 
                NATIVE AMERICANS, AND FOR OTHER PURPOSES

                                _______
                                

               November 10, 2004.--Ordered to be printed

 Filed, under authority of the order of the Senate of October 11, 2004

                                _______
                                

  Mr.  Campbell, from the Committee on Indian Affairs, submitted the 
                               following

                              R E P O R T

                         [To accompany S. 519]

    The Committee on Indian Affairs, to which was referred the 
bill (S. 519) to establish a Native American-owned financial 
entity to provide financial services to Indian tribes, Native 
American organizations, and Native Americans, and for other 
purposes, having considered the same, reports favorably thereon 
with an amendment in the nature of a substitute and recommends 
that the bill (as amended) do pass.

                                Purpose

    The purpose of S. 519, as introduced, is to establish a 
Congressionally-chartered corporation under the jurisdiction of 
the U.S. Department of Housing and Urban Development that would 
be capitalized and owned by tribal shareholders, the Department 
of Hawaiian Homelands, Alaska Native Corporations and other 
entities that wish to invest in the corporation.

                               Background

    Despite a national unemployment rate of 5.4%, the jobless 
rate in Native American communities hovers around 50%, with 
some Indian economies experiencing unemployment rates near 80%. 
These rates are nearly twice that of the national unemployment 
rate in the Great Depression of the 1930's. Despite some recent 
successes with casino gaming, energy ventures, and other 
business opportunities, many tribes still suffer a severe lack 
of jobs and high unemployment, intense poverty and a lack of 
physical infrastructure.
    In addition to the litany of unmet needs in Native 
communities, there is a severe lack of economic information and 
analyses of economic conditions in tribal economies.
    With existing Federal assistance uncoordinated, fragmented 
and spread thinly, Indian tribes have difficulty obtaining 
sufficient funds to undertake meaningful development 
efforts.\1\
---------------------------------------------------------------------------
    \1\ See Report of the General Accounting Office: Relationship to 
EDA Grants and Self Determination Contracting is Mixed, September 2004, 
GAO-04-847; see also Report of the General Accounting Office: Economic 
Development, Federal Assistance Programs for American Indians and 
Alaska Natives, December 2001, GAO-02-193.
---------------------------------------------------------------------------
    Further, the current budget constraints limits prospects 
for major increases in assistance funding in the foreseeable 
future.\2\
---------------------------------------------------------------------------
    \2\ See FY1995-FY2005 Interior Appropriations Legislation for 
recent trends in economic spending for Indian Country.
---------------------------------------------------------------------------
    It is also well-documented that native entrepreneurs and 
communities lack access to capital for both home mortgages and 
commercial purposes.\3\ While existing Federal programs such as 
the Indian Loan Guaranty Program \4\ provide business loan 
guarantees to Native entrepreneurs, these programs do little to 
assist tribes in identifying inhibitors to growth and 
conversely to attract and retain private sector investment and 
business activity.
---------------------------------------------------------------------------
    \3\ See Report of the General Accounting Office: Native American 
Housing: Home-ownership opportunities on Trust Lands Are Limited, 
February 24, 1998, GAO/FCED-98-49; see also The Report of the Native 
American Lending Study, Community Development Financial Institutions 
Fund, November 2001.
    \4\ See the Indian Financing Act of 1974, 25 U.S.C. 1451 et. seq., 
as amended.
---------------------------------------------------------------------------
    As such, there is a need for a new Indian economic 
development paradigm as well as creative sources of economic 
analysis, capital, and technical expertise to spur growth and 
development in Native communities.

                    Federally-Chartered Corporation

    As introduced, S. 519 would establish the Native American 
Capital Development Corporation (NACDC), a Congressionally-
chartered corporation under the jurisdiction of the U.S. 
Department of Housing and Urban Development (HUD). The NACDC 
would be capitalized and owned by Indian tribal shareholders, 
the Department of Hawaiian Homelands, Alaska Native 
Corporations and other entities that wish to invest in the 
corporation.
    The primary mission of the Corporation would be to provide 
financing, including loan guarantees, to member tribes for 
infrastructure and commercial ventures and project financing, 
including loan syndications, for majority Native-owned 
businesses.
    It should be made clear that S. 519 does not propose a 
retail or commercial bank, but rather a new entity designed to 
supplement and assist the efforts of commercial banks now 
serving Native communities.

                    Development and Diagnostic Funds

    As introduced, S. 519 would have established two 
initiatives aimed at stimulating investment and economic 
development in Native economies:
          (1) The ``Native American Economies Diagnostic 
        Studies Fund'' to assist tribes in identifying 
        inhibitors to economic growth and job creation; and
          (2) The ``Native American Incubation Center Fund'' to 
        provide capital and technical support to tribal 
        governments to identify and make feasible opportunities 
        and activities designed to bring investment, growth and 
        job creation.

                        The Substitute Amendment

    For nearly ten years the Committee has conducted formal 
hearings and informal discussions related to the concept and 
mechanics of establishing a Tribally-Owned Development 
Corporation, as envisioned in S. 519. Since 1995 when the 
Native American Financial Services Organization Act (S. 436) 
was first introduced in the Senate, formal and informal 
discussions have failed to resolve a number of key issues 
including, but not limited to, capitalization, choice and 
methods of incorporation, the ownership structure of the 
Corporation and the lending activities of such a Corporation.
    Accordingly, rather than formally establishing such a 
Corporation, a substitute amendment was developed to direct a 
study be undertaken to determine the feasibility of forming an 
Indian tribal development corporation and the results of that 
study be reported back to Congress within 9 months.
    The substitute amendment also directs the Native Business 
Development Office (NABDO) within the Department of Commerce to 
undertake the study in conjunction with the Study Group. The 
NABDO was established in 2000 within the office of the 
Secretary of Commerce by the Native American Business 
Development, Trade Promotion, and Tourism Act, Pub. L. 106-464, 
which, in turn, was enacted to bring greater focus and 
resources to the problems surrounding economic development in 
Native communities.

                    Summary of Substitute to S. 519

    The substitute amendment launches a feasibility study to 
determine whether a Tribally-Owned Development Corporation 
should be undertaken in future legislation. A section-by-
section description of the changes contained in the substitute 
amendment follows.

Section 1. Short Title.

    This Act may be cited as the ``Indian Tribal Development 
Corporation Feasibility Study Act of 2004''.

Section 2. Feasibility Study.

    Section 2 amends the Native American Business Development, 
Trade Promotion, and Tourism Act (25 U.S.C. 4303(b)) by 
inserting a new section (6) entitled the ``Tribal Development 
Corporation Feasibility Study''.
    The Secretary of Commerce is directed to establish the 
``Tribal Development Corporation Feasibility Study Group'' to 
consist of 12 members from Indian Tribes, Alaska Natives, 
Native Hawaiians, a representative from the private sector and 
an official from the Department of the Treasury.
    Within 270 days after enactment of this Act, the Study 
Group is responsible for conducting a study on the feasibility 
of establishing an Indian Tribal Development Corporation. The 
study will be submitted to the Senate Committees on Indian 
Affairs, Appropriations, and the House Committees on Resources 
and Appropriations.
    The Study will discuss the financial feasibility of 
establishing a corporation and whether that corporation would 
have a positive economic impact on Native American reservation 
communities.
    The Study will contain a discussion and determination of 
the best alternatives in the structure, organization, and 
lending terms and conditions of the Corporation, including the 
most appropriate structure of capital contributions to best 
serve, and be acceptable to, Native interests. The discussion 
should also determine the basic terms and conditions under 
which funding would be provided to member Indian tribes.
    The Study should identify tribal, Federal, or State 
policies and legal and regulatory conditions and infrastructure 
deficiencies that impede investment, both private and public, 
needed to promote economic development and to provide 
recommendations for remedial actions that can be undertaken by 
an Indian tribe to overcome such inhibitors of investment.
    Finally, the Study shall determine the capital structure of 
the Corporation and the financial instruments needed to ensure 
its success. The Study Group will disband 120 days after the 
Group submits its report to Congress.

                          Legislative History

    The Native American Capital Formation and Economic 
Development Act of 2003 (S. 519) was introduced on March 5, 
2003, by Senator Campbell and was referred to the Committee on 
Indian Affairs. Hearings were held on the bill on April 30, 
2003 and on July 21, 2004. On September 29, 2004, the Committee 
convened a business meeting to consider S. 519 and other 
measures that had been referred to it, and on that date, the 
Committee favorably reported a substitute amendment to S. 519.

            Committee Recommendation and Tabulation of Vote

    On September 29, 2004, the Committee on Indian Affairs, in 
an open business session, adopted an amendment in the nature of 
a substitute to S. 519 by voice vote and ordered the bill, as 
amended, reported favorably to the Senate.

                    Cost and Budgetary Consideration

    The cost estimate for S. 519 as calculated by the 
Congressional Budget Office, is set forth below:

S. 519--Indian Tribal Development Corporation Feasibility Study Act of 
        2004

    Summary: S. 519 would direct the Department of Commerce to 
establish the Tribal Development Corporation Feasibility Study 
Group. CBO estimates that implementing this legislation would 
cost $5 million over the 2005-2009 period, assuming 
appropriation of the specified amounts.
    Enacting the bill would not affect direct spending or 
revenues. S. 519 contains no intergovernmental or private-
sector mandates as defined in the Unfunded Mandates Reform Act 
(UMRA) and would impose no costs on state, local, or tribal 
governments.
    Estimated cost to the Federal Government: The estimated 
budgetary impact of S. 1438 is shown in the following table. 
The costs of this legislation fall within budget function 450 
(community and regional development).

----------------------------------------------------------------------------------------------------------------
                                                                       By fiscal year, in millions of dollars--
                                                                    --------------------------------------------
                                                                       2005     2006     2007     2008     2009
----------------------------------------------------------------------------------------------------------------
                                  CHANGES IN SPENDING SUBJECT TO APPROPRIATION

Authorization Level................................................        3        2        0        0        0
Estimated Outlays..................................................        3        2        0        0        0
----------------------------------------------------------------------------------------------------------------

    Basis of estimate: For this estimate, CBO assumes that the 
bill will be enacted near the beginning of fiscal year 2005, 
that specified amounts will be appropriated for each year, and 
that outlays will occur at historical rates for similar 
programs.
    S. 519 would amend the Native American Business 
Development, Trade Promotion, and Tourism Act of 2000 to 
authorize the appropriation of $3 million in 2005 and $2 
million in 2006 for the Tribal Development Corporation 
Feasibility Study Group. That group would be composed of 12 
members from varied Indian interests, the private sector, and 
the federal government. The group would examine various aspects 
of a potential Indian Tribal Development Corporation and report 
on those efforts within 270 days following enactment of the 
bill. The group would dissolve within 120 days after completing 
a report.
    Intergovernmental and private-sector impact: S. 519 
contains no intergovernmental or private-sector mandates as 
defined in UMRA and would impose no costs on state, local, or 
tribal governments.
    Estimate prepared by: Federal Costs: Mike Waters; Impact on 
State, Local, and Tribal Governments: Marjorie Miller; Impact 
on the Private Sector: Karen Raupp.
    Estimate 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 and impact that would be 
incurred in implementing the legislation. The Committee has 
concluded that enactment of S. 519 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, the Committee states that the 
enactment of S. 519 will result in the following changes in 25 
U.S.C. Sec. 4303(b) et seq., with existing language which is to 
be deleted in black brackets and the new language to be added 
in italic:
    (b) Duties of the Secretary.--
          (1) In general.--The Secretary, acting through the 
        Director, shall ensure the coordination of Federal 
        programs that provide assistance, including financial 
        and technical assistance, to eligible entities for 
        increased business, the expansion of trade by eligible 
        entities, and economic development on Indian lands.
          (2) The Secretary, acting through the Director, shall 
        coordinate Federal programs relating to Indian economic 
        development, including any such program of the 
        Department of the Interior, the Small Business 
        Administration, the Department of Labor, or any other 
        Federal agency charged with the Indian economic 
        development responsibilities.
          (3) In carrying out the duties described in paragraph 
        (1), the Secretary, acting through the Director, shall 
        ensure the coordination of, or, as appropriate, carry 
        out--
                  (A) Federal programs designed to provide 
                legal, accounting, or financial assistance to 
                eligible entities;
                  (B) market surveys;
                  (C) the development of promotional materials;
                  (D) the financing of business development 
                seminars;
                  (E) the facilitation of marketing;
                  (F) the participation of appropriate Federal 
                agencies or eligible entities in trade fairs;
                  (G) any activity that is not described in 
                subparagraphs (A) through (F) that is related 
                to the development of appropriate markets; and
                  (H) any other activity that the Secretary, in 
                consultation with the Director, determines to 
                be appropriate to carry out this section.
          (4) In conjunction with the activities described in 
        paragraph (3), the Secretary, acting through the 
        Director, shall provide--
                  (A) financial assistance, technical 
                assistance, and administrative services to 
                eligible entities to assist those entities 
                with--
                          (i) identifying and taking advantage 
                        of business development opportunities; 
                        and
                          (ii) compliance with appropriate laws 
                        and regulatory practices; and
                  (B) such other assistance as the Secretary, 
                in consultation with the Director, determines 
                to be necessary for the development of business 
                opportunities for eligible entities to enhance 
                the economics of Indian tribes.
          (5) Priorities.--In carrying out the duties and 
        activities described in paragraphs (3) and (4), the 
        Secretary, acting through the Director, shall give 
        priority to activities that--
                  (A) provide the greatest degree of economic 
                benefits to Indians; and
                  (B) foster long-term stable economies of 
                Indian tribes.
          (6) Tribal development corporation feasibility.--
                  (A) In general.--The Secretary shall 
                establish the Tribal Development Corporation 
                Feasibility Study Group (referred to in this 
                paragraph as the ``Group'').
                  (B) Members.--The Group shall be comprised of 
                12 members, as follows:
                          (i) Representatives of indian 
                        tribes.--Five members of the Group 
                        shall be representatives of federally 
                        recognized Indian tribes.
                          (ii) Representatives of the alaska 
                        native community.--Three members of the 
                        Group shall be representatives of the 
                        Alaska Native Community.
                          (iii) Representative of the native 
                        hawaiian community.--One member of the 
                        Group shall be a representative of the 
                        Native Hawaiian Community.
                          (iv) Representative of the private 
                        sector.--Two members of the Group shall 
                        be representatives of nongovernmental 
                        economic activities carried out by 
                        private enterprises in the private 
                        sector.
                          (v) Federal officials.--One member of 
                        the Group shall be a representative of 
                        the Department of Treasury with 
                        demonstrated experience in 
                        international economic development and 
                        international financial institutions.
                  (C) Chairperson.--The members of the Group 
                shall select a Chairperson
                  (D) Personnel and services.--
                          (i) In general.--The Chairperson of 
                        the Group may appoint and terminate 
                        such personnel as are necessary to 
                        enable the Group to perform its duties.
                          (ii) Procurement of services.--The 
                        Chairperson may procure such services 
                        as are necessary to enable the Group to 
                        perform the duties of the Group.
                  (E) Study.--
                          (i) In general.--Not later than 270 
                        days after the date of enactment of 
                        this subparagraph, the group shall--
                                  (I) conduct a study to 
                                determine the feasibility of 
                                establishing an Indian Tribal 
                                Development Corporation 
                                (referred to in this 
                                subparagraph as the 
                                ``Corporation''); and
                                  (II) submit to the Committee 
                                on Indian Affairs and the 
                                Committee on Appropriations of 
                                the Senate and the Committee on 
                                Resources and the Committee on 
                                Appropriations of the House of 
                                Representatives a report that 
                                describes the results of the 
                                study and any recommendations 
                                of the Group for further 
                                legislative action.
                          (ii) Contents.--The report shall 
                        contain--
                                  (I) a discussion and 
                                determination of the financial 
                                feasibility of the Corporation, 
                                including whether the 
                                Corporation can be, over the 
                                long term, financially self-
                                sustainable;
                                  (II) a discussion and 
                                determination of the probable 
                                economic impact of the 
                                Corporation, including a 
                                demonstration of the 
                                quantitative and qualitative 
                                economic impact on Native 
                                American communities;
                                  (III) a discussion and 
                                determination of the best 
                                alternatives in the structure, 
                                organization, and lending terms 
                                and conditions of the 
                                Corporation, including the most 
                                appropriate structure of 
                                capital contributions to best 
                                serve, and be acceptable to, 
                                Native interests;
                                  (IV) a discussion and 
                                determination of the basic 
                                terms and conditions under 
                                which funding would be provided 
                                to member Indian tribes;
                                  (V) a discussion of 
                                nonfinancial and advisory 
                                activities to be undertaken by 
                                the Corporation, including the 
                                use of diagnostic studies by 
                                the Corporation to--
                                          (aa) identify tribal, 
                                        Federal, or State 
                                        policies and legal and 
                                        regulatory conditions 
                                        and infrastructure 
                                        deficiencies that 
                                        impede investment, both 
                                        private and public, 
                                        needed to promote 
                                        economic development;
                                          (bb) the financial 
                                        instruments that will 
                                        be required by the 
                                        Corporation to ensure 
                                        its success.
                  (F) Termination of study group.--The Group 
                shall terminate 120 days after the date on 
                which the Group submits the report under 
                subparagraph (E).
                  (G) Authorization of appropriations.--There 
                are authorized to be appropriated to carry out 
                this paragraph--
                          (i) $3,000,000 for fiscal year 2005; 
                        and
                          (ii) $2,000,000 for fiscal year 2006.
          [(6)] (7) Prohibition.--The Secretary may not provide 
        under this section assistance for any activity related 
        to the operation of a gaming activity on Indian lands 
        pursuant to the Indian Gaming Regulatory Act (25 U.S.C. 
        2710 et. seq.)

                         Supplemental Materials

                                   Salish Kootenai College,
                                         Pablo, MT, April 29, 2003.
Senator Ben Nighthorse Campbell,
Committee on Indian Affairs,
Hart Senate Office Building, Washington, DC.
    Honorable Senator Nighthorse Campbell: This letter is to 
support S 519 Native American Capital Formation and Economic 
Development Act of 2003. I am writing to request your help and 
support, especially for Tribal Business Information Centers.
    We sincerely appreciate your consideration of supporting S 
519. We know there is a budgetary pressure in Washington 
however, if you are willing to support S 519 we will provide 
you with whatever information and assistance you need, on a 
timely basis.
    Thank you Senator and we invite you to Salish Kootenai 
College to see our Tribal Business Information Center. If you 
or your staff should have any questions about our Tribal 
Business Information Center or request of support, please do 
not hesitate to call me at (406) 275-4959.
            Yours truly,
                                              Joe McDonald,
                                                         President.
                                ------                                

                       United Sioux Tribes of South Dakota,
                                     Pierre, SD, September 3, 2004.
Re Support of S. 519.
Hon. Ben Nighthorse Campbell,
U.S. Senate,
Washington, DC.
    Dear Mr. Chairman: On behalf of the United Sioux Tribes of 
South Dakota, North Dakota, and Nebraska, we write in general 
support of S. 519, which would establish an Indian-owned 
financial entity to provide a variety of services to Indian 
organizations, tribes and individual Indians. We are willing to 
endorse this legislation because we understand that the 
corporate structure of this entity is designed to guarantee 
majority Indian ownership. While we also feel that this might 
not be enough to guarantee total ``buy-in'' from Indian country 
immediately, we believe that it has tremendous potential to 
begin to fill the current overwhelming need for capital and 
technical assistance that frustrates economic development 
within reservation communities.
    In particular we endorse the ``Native American Economies 
Diagnostic Studies Fund,'' which would support investment 
policy reforms, facilitate diagnostic studies of reservation 
economies, and allow financial and other data to be collected 
nationwide throughout Indian country. While many different 
Federal agencies have collected data and issued reports on this 
problem, a centralized clearinghouse for such data is sorely 
needed, as is a centralized and accessible location for 
technical assistance and support. Although the legislation does 
not include this kind of detail, we would recommend that 
through this fund, websites and materials are developed that 
would make it easier for intertribal organizations, tribes, and 
Indian individuals to evaluate and utilize the economic 
development resources provided by many different Federal 
agencies today, sometimes with very little coordination.
    We also support establishment of the ``Native American 
Economic Incubation Center Fund.'' We believe that nation 
building goes hand in hand with true and lasting economic 
success, and this fund is designed to both reward and 
facilitate this process.
    We understand that legislation is always a work in progress 
and can be amended as conditions and ideas about what is 
workable change. Overall, we support the bill as a significant 
step in the right direction, and we thank you for your 
continued dedication to promoting healthy economies in Indian 
country.
            Sincerely,
                              Chairman Michael B. Jandreau,
                                            UST Board of Directors.


                        Southern Ute Indian Tribal Council,
                                   Ignacio, CO, September 30, 2004.
Re S. 519.
Hon. Ben Nighthorse Campbell,
U.S. Senate,
Committee on Indian Affairs,
Washington, DC.
    Dear Chairman Campbell: I am writing in response to your 
request of September 9, 2004, to answer questions regarding S. 
519. Before outlining my thoughts on the issues raised in your 
letter, I would like to thank you for giving the Southern Ute 
Indian Tribe an opportunity to provide input on this 
legislation.
    The Southern Ute Indian Tribe (Tribe) is a recognized 
leader of economic development in Indian Country as a result of 
sound planning and implementation of its financial plans. As 
such, the Tribe has faced and dealt with many of the problems 
described in S. 519's proposed findings. The Tribe agrees that 
cooperative efforts, calling upon, the strengths of the 
federal, local and tribal governments, as well as the financial 
backing of the private sector, are needed to help Indian 
Country achieve sustainable progress and success in economic 
development.
    The Tribe is not currently involved in any cooperative 
agreements for economic development with other Indian tribes. A 
tribal development corporation, as contemplated by S. 519, 
could provide the opportunity to develop such partnership, 
fostering cooperation that could help tribes share successful 
economic development strategies and ideas. A tribal development 
corporation could serve as an extension of the national Indian 
community and provide a forum for Indian leaders to access 
their counterparts, with the goal of creating the associations 
necessary to spur economic development throughout Indian 
country.
    A tribal development corporation could also help the 
Tribe's economic development plans in the same fashion. Despite 
the ongoing success of this Tribe, many tribal members, like 
all other Indian people, still face unemployment, poor health, 
substandard housing and the social ills associated with these 
problems. Regardless of this Tribe's economic success, a tribal 
development corporation would assist the Tribe in addressing 
the types of economic development that can, over the long term, 
sustain the growth that the Tribe has already enjoyed. The 
Tribe's economic development and diversification plans would be 
buoyed by the potential for help from a broad range of sources, 
all centered within the auspices of the development corporation 
created by S. 519.
    A large part of the Southern Ute Indian Tribe's success 
story has been the insistence, by tribal leaders and tribal 
members, that each tribal venture is thoroughly investigated, 
planned and executed. Such diligent preparation and planning 
requires that the Tribe gather the best and most accurate data 
available. For example, when the Tribe considered the prospect 
of opening a gaming facility on the Reservation, a wide-ranging 
study regarding the potential impacts of such an operation was 
performed. The Tribe moved forward with its plans only after 
the study showed that a casino would have overwhelmingly 
positive impacts on the Reservation economy and tribal 
employment. The Tribe would therefore look forward to accessing 
detailed information regarding both economic development 
opportunities and the forecasted results of any such 
development that would be available through the tribal economic 
development corporation proposed by S. 519.
    Another factor that continues to contribute to the economic 
progress of the Tribe is the predictability afforded to outside 
investors by the Tribe's legal codes and Tribal Court. The 
Enforcement of Secured Transactions Code, for example, was 
initially adopted by the Tribe in 1980 and has since been 
revised twice to provide for more effective implementation and 
application of the Code. Many other titles of the Southern Ute 
Indian Tribal Code address business issues within the 
Reservation, such as the Employment Rights Code (Title 17), the 
Severance Tax Code (Title 21), the Excavation Code (Title 22), 
the Sales Tax Ordinance and Ordinance No. 86-01 for the 
Regulation of Oil and Gas Development Activities. With tribal 
business codes like these, and the assurance of a well-
established, stable and competent Tribal Court, outside 
investors and businesses are encouraged to participate in the 
Tribe's economic growth and development. While S. 519 will play 
a significant role in assisting other tribes in their 
development of similar codes, it is important to remember that 
the most effective tribal codes are those that are organic to 
the tribal community that they protect. Thus, while technical 
expertise and business acumen will become available to tribes 
through S. 519, each tribe would still need to independently 
draft and implement effective business and financial codes 
tailored to their particular tribal environment.
    As for the concepts contained in Title VI of S. 519, Indian 
Country has seen what may prove to be a catastrophic decline in 
federal appropriations for the Indian Health Service and other 
programs aimed at the well being of Native America. The Tribe 
hopes that the appropriations called for in Title VI of S. 519 
will actually meet the needs of Native American financial 
institutions, but, in the current national economic and 
political climate, this hope may not be entirely realistic. 
Nonetheless, the spirit of Title VI is positive and Section 601 
of S. 519 emphasizes the importance of financial assistance to 
Native American financial institutions. The Tribe would like to 
see the spirit of Title VI translate into concrete federal 
financial assistance for Indian economic development.
    In closing, let me again emphasize the Southern Ute Indian 
Tribe's view that this legislation will provide important 
economic development opportunities for all tribes. These 
opportunities will become increasingly critical to the 
continued successful, self sustained development of Indian 
Country, especially in light of the current state of diminished 
federal funding. If properly implemented, the provisions of S. 
519 will fulfill another aspect of the federal government's 
ongoing trust responsibility and provide a much-needed jump-
start for economic development in Indian Country, and we 
appreciate the opportunity to provide our comments.
            Sincerely,
                                   Howard D. Richards, Sr.,
                               Chairman, Southern Ute Indian Tribe.
                             Fort Belknap Indian Community,
                                        Harlem, MT, April 29, 2003.
Hon. Ben Nighthorse Campbell,
Russell Senate Office Building,
Washington, DC.
    Dear Senator Nighthorse Campbell: The Fort Belknap Indian 
Community Council supports your efforts to include Tribal 
Business Information Centers in the amendments of S. 519, The 
Native American Capital Formation and Economic Development Act 
of 2003.
    Since Fort Belknap TBIC's inception in 1995, twenty-four 
(24) new small businesses have started. These new businesses 
have created 29 full-time jobs and 3 part-time jobs. This is a 
monumental endeavor on our reservation, where the unemployment 
rate has averaged from 65% to 71% over the past twenty years.
    The Fort Belknap TBIC encourages and assists community 
members in developing their entrepreneurship skills that lead 
to individual independence and promotes community economic 
development. From fall 1999 to fall 2002, the center has 
offered 63 classes/workshops, with 434 participants taking 
advantage of the specialized entrepreneurial training.
    Major accomplishments of Fort Belknap Tribal Business 
Information Center are:
           Produced award winning business plans (1999 
        & 2000);
           Received the ``Best Practices Award'' from 
        H.U.D. for its business incubator (May 2001);
           Developed a Uniform Commercial Code (2001);
           Formed a Financial Institution Planning 
        Committee to establish a Credit Union Branch on Fort 
        Belknap (2001-2002);
           Established a partnership with Rural 
        Development and Finance Initiative to establish a micro 
        loan fund;
           Completed a reservation-wide Educational 
        Needs Assessment (2001-2002);
           Planned and implemented an Arts & Crafts 
        Fair and Cultural Food Demonstration (July 2001 and 
        2002); and
           Assisted two communities on the Fort Belknap 
        Indian Reservation on the process of how to form their 
        own Community Development Corporations. IRS 501  (3) 
        applications have been filed (2002).
    There are nearly 20 TBICs operating in the nation and we 
are independently seeking funding on a continual basis to 
underwrite administrative and operating expenses, special 
projects and technical assistance for low-income American 
Indian entrepreneurs. Financial resources in both the public 
and private sectors are decreasing for communities that suffer 
chronic poverty conditions. The downturn in the stock market 
has dramatically changed the amount of charitable contributions 
available from foundations and the federal government budget 
cuts in rural economic development have been reduced as well.
    On behalf of Fort Belknap College-TBIC and Fort Belknap 
Indian Community, we appreciate and support your efforts in 
obtaining an appropriation that would guarantee a line item 
funding for Tribal Business Information Centers. The TBICs play 
a major role in the revitalization of our economies on the 
isolated Indian reservations.
    If there are any questions, please do not hesitate to call 
me at (406) 353-8303.
            Sincerely,
                                          Ben Speakthunder,
                  President, Fort Belknap Indian Community Council.
                                ------                                

                                      Fort Belknap College,
                                        Harlem, MT, April 29, 2003.
Hon. Ben Nighthorse Campbell,
Russell Senate Office Building,
Washington, DC.
    Dear Senator Nighthorse Campbell: The Fort Belknap Tribal 
Business Information Center supports your efforts to include 
Tribal Business Information Centers in the amendments of S. 
519, The Native American Capital Formation and Economic 
Development Act of 2003.
    Tribal Business Information Centers were created to address 
the unique conditions encountered by reservation-based American 
Indian businesses and to serve tribal communities in their 
efforts to create, develop and expand small businesses. TBICs 
provide culturally tailored business development assistance to 
potential and current small business owners.
    Since Fort Belknap TBIC's inception in 1995, twenty-four 
(24) new small businesses have started. These new businesses 
have created 29 full-time jobs and 3 part-time jobs. This is a 
monumental endeavor on our reservation, where the unemployment 
rate has averaged from 65% to 71% over the past twenty years.
    The Fort Belknap TBIC encourages and assists community 
members in developing their entrepreneurship skills that lead 
to individual independence and promotes community economic 
development. From fall 1999 to fall 2002, the center has 
offered 63 classes/workshops, with 434 participants taking 
advantage of the specialized entrepreneurial training.
    Major accomplishments of Fort Belknap Tribal Business 
Information Center are:
           Produced award winning business plans (1999 
        & 2000);
           Received the ``Best Practices Award'' from 
        H.U.D. for its business incubator (May 2001);
           Developed a Uniform Commercial Code (2001);
           Formed a Financial Institution Planning 
        Committee to establish a Credit Union Branch on Fort 
        Belknap (2001-2002);
           Established a partnership with Rural 
        Development and Finance Initiative to establish a micro 
        loan fund;
           Completed a reservation-wide Educational 
        Needs Assessment (2001-2002);
           Planned and implemented an Arts & Crafts 
        Fair and Cultural Food Demonstration (July 2001 and 
        2002); and
           Assisted two communities on the Fort Belknap 
        Indian Reservation on the process of how to form their 
        own Community Development Corporations. IRS 501  (3) 
        applications have been filed (2002).
    On behalf of Fort Belknap Tribal Business Information 
Center, we support your efforts in obtaining an appropriation 
that would guarantee a line item funding for Tribal Business 
Information Centers. The TBICs play a major role in the 
revitalization of our economies on the isolated Indian 
reservations.
    If there are any questions, please do not hesitate to call 
me at (406) 353-4672.
            Sincerely,
                                            Mildred Kinsey,
         Director, Fort Belknap Tribal Business Information Center.

                                  
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