[House Report 109-626]
[From the U.S. Government Publishing Office]



109th Congress                                                   Report
                        HOUSE OF REPRESENTATIVES
 2d Session                                                     109-626

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



 
      TRIBAL DEVELOPMENT CORPORATION FEASIBILITY STUDY ACT OF 2005

                                _______
                                

 September 6, 2006.--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. 3350]

      [Including cost estimate of the Congressional Budget Office]

  The Committee on Resources, to whom was referred the bill 
(H.R. 3350) to amend the Native American Business Development, 
Trade Promotion, and Tourism Act of 2000 to establish the 
Tribal Development Corporation Feasibility Study Group, having 
considered the same, report favorably thereon without amendment 
and recommend that the bill do pass.

                          Purpose of the Bill

    The purpose of H.R. 3350 is to amend the Native Business 
Development, Trade Promotion, and Tourism Act of 2000 to 
establish the Tribal Development Corporation Feasibility Study 
Group.

                  Background and Need for Legislation

    It is well documented that Indian tribal governments and 
individual Native entrepreneurs lack access to capital for both 
home mortgages and other commercial purposes. While Indian 
gaming operations provide Indian tribes financial leverage to 
diversify their business development, many tribes are located 
too far away from lucrative gaming markets in which to 
successfully raise and leverage casino profits. As a result, 
attracting capital for Indian tribes to diversify into non-
gaming economic development has been difficult. While existing 
federal programs such as the Indian Loan Guaranty Program at 
the Bureau of Indian Affairs and the Native American Small 
Business Loan Program at the Small Business Administration 
provide business loan guarantees to Native entrepreneurs, these 
programs do little to assist tribes in identifying inhibitors 
to economic growth and conversely to attract and retain private 
sector investment and business activity.
    With existing federal assistance uncoordinated and spread 
thinly, there is a severe lack of information and analyses of 
economic conditions for non-gaming tribal economies. H.R. 3350 
would determine the feasibility of developing an Indian-owned 
development corporation whose mission would be to identify 
potential non-gaming reservation development, implement 
reservation development plans, and attract private-sector 
capital to interested tribal governments.

                            Committee Action

    H.R. 3350 was introduced on July 19, 2005, by Resources 
Committee Chairman Richard W. Pombo (R-CA). The bill was 
referred to the Committee on Resources. On March 29, 2006, the 
Full Resources Committee held a on H.R. 3350. On July 19, 2006, 
the Full Resources Committee met to consider H.R. 3350. No 
amendments were offered, and the bill was ordered favorably 
reported to the House of Representatives by unanimous consent.

            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, clause 3 of the Constitution of the 
United States grants Congress the authority to enact this bill.

                  Federal Advisory Committee Statement

    The functions of the proposed advisory committee authorized 
in the bill are not currently being nor could they be performed 
by one or more agencies, an advisory committee already in 
existence or by enlarging the mandate of an existing advisory 
committee.

                    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. As required by 
clause 3(c)(4) of rule XIII, the general performance goal or 
objective of this bill is to amend the Native Business 
Development, Trade Promotion, and Tourism Act of 2000 to 
establish the Tribal Development Corporation Feasibility Study 
Group.
    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:

H.R. 3350--Tribal Development Corporation Feasibility Study Act of 2005

    H.R. 3350 would amend the Native American Business 
Development, Trade Promotion, and Tourism Act of 2000 to 
authorize the creation of the Tribal Development Corporation 
Feasibility Study Group. The group would be composed of 12 
members from varied Indian interests, the private sector, and 
the federal government. Within 270 days following the enactment 
of the bill, the group would report to the Congress on creating 
an Indian Tribal Development Corporation, and dissolve no later 
than 120 days thereafter.
    The bill would authorize the appropriation of $500,000 in 
2007 for the study and would require that federal funds be 
matched by nonfederal funds. Enacting H.R. 3350 would not 
affect direct spending or receipts.
    H.R. 3350 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. 
Any spending by Indian tribes to match federal appropriations 
would be voluntary.
    The CBO contact for this estimate is Daniel Hoople. 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 Made by the Bill, as Reported

  In compliance with clause 3(e) of rule XIII of the Rules of 
the House of Representatives, changes in existing law made by 
the bill, as reported, are shown as follows (existing law 
proposed to be omitted is enclosed in black brackets, new 
matter is printed in italics, existing law in which no change 
is proposed is shown in roman):

SECTION 4 OF THE NATIVE AMERICAN BUSINESS DEVELOPMENT, TRADE PROMOTION, 
                        AND TOURISM ACT OF 2000


SEC. 4. OFFICE OF NATIVE AMERICAN BUSINESS DEVELOPMENT.

  (a) * * *
  (b) Duties of the Secretary.--
          (1) * * *

           *       *       *       *       *       *       *

          (6) Tribal development corporation feasibility 
        study.--
                  (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 the 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 non-
                                        gaming economic 
                                        development;
                                          (bb) provide specific 
                                        recommendations for 
                                        remedial actions that 
                                        can be undertaken by an 
                                        Indian tribe to 
                                        overcome such 
                                        inhibitors of 
                                        investment; and
                                          (cc) identify and 
                                        establish the terms for 
                                        pre-appraisal studies 
                                        of investment 
                                        opportunities, both 
                                        private and public, 
                                        that can be developed 
                                        and promoted by an 
                                        Indian tribe; and
                                  (VI) a discussion and 
                                determination of--
                                          (aa) the capital 
                                        structure of the 
                                        Corporation, including 
                                        the optimal level of 
                                        initial capital 
                                        contributions by both 
                                        Indian tribes and the 
                                        United States 
                                        Government; and
                                          (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 appropriation.--There 
                are authorized to be appropriated to carry out 
                this paragraph $500,000.
                  (H) Matching requirement.--Federal funds made 
                available to carry out this paragraph must be 
                matched dollar-for-dollar with non-Federal 
                funds.
          [(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.).

                                  
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