[Senate Report 109-343]
[From the U.S. Government Publishing Office]





                                                       Calendar No. 623
109th Congress                                                   Report
                                 SENATE
 2d Session                                                     109-343

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



 
  CHEYENNE RIVER SIOUX TRIBE EQUITABLE COMPENSATION AMENDMENTS ACT OF 
                                  2005

                                _______
                                

               September 20, 2006.--Ordered to be printed

                                _______
                                

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

                              R E P O R T

                         [To accompany S. 1535]

    The Committee on Indian Affairs, to which was referred the 
bill (S. 1535) to amend the Cheyenne River Sioux Tribe 
Equitable Compensation Act to provide compensation to members 
of the Cheyenne River Sioux Tribe for damage resulting from the 
Oahe Dam and Reservoir Project, 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

    S. 1535 amends the Cheyenne River Sioux Tribe Equitable 
Compensation Act (P.L. 106-511) to allow the Tribe to 
compensate individual landowners from the interest on the 
Cheyenne River Sioux Tribe Equitable Compensation Fund; 
accelerate payments to the Cheyenne River Sioux Tribe Equitable 
Compensation Fund; and direct the Secretary of the Treasury to 
invest the Fund in interest bearing obligations of the United 
States.

                               Background

    In the late 1940s, the Army Corps of Engineers commenced 
construction of the Oahe Dam and Reservoir Project along the 
Missouri River. By the time it was dedicated in 1962, the dam 
had inundated thousands of acres of the Cheyenne River Sioux 
Tribe's reservation lands and displaced the populations of 
several Indian communities living near the river.
    In 1984, the Secretary of the Interior established a Joint 
Tribal-Federal Advisory Committee (JTAC) to examine and make 
recommendations with respect to the effects of the impoundment 
of waters under the Pick-Sloan Program on the tribes along the 
Missouri River. The JTAC study concluded that the compensation 
that was provided to the tribes in the 1950's indeed was 
inadequate and did not take into account the full extent of the 
tribes' losses.
    In 1993, the Cheyenne River Sioux Tribe began seeking 
additional compensation for the lands taken from it and its 
members and, in 2000, Congress passed Public Law 106-511. Title 
I of this law provided additional compensation in the amount of 
$290,722,958 to the Tribe for 104,492 acres of land taken as a 
result of the Oahe Dam project. The law provided for the 
establishment in the U.S. Treasury of the Cheyenne River Sioux 
Tribal Recovery Trust Fund, into which $290,722,958, plus 
interest, would be deposited in 2011. Beginning in 2011, the 
Tribe is authorized to withdraw the interest earned on the Fund 
pursuant to a plan that it is required to develop to promote 
the economic development, education, infrastructure development 
and/or social welfare of the Tribe and its members. The law 
prohibits the Tribe from withdrawing any amount of the 
principal or distributing the funds to members of the Tribe on 
a per capita basis.
    S. 1535 recognizes that although the Cheyenne River Sioux 
Tribe was provided additional compensation in 2000, the 
individual members of the Tribe who lost their individually-
owned lands were not. S. 1535 would amend Public Law 106-511 to 
authorize the Tribe to use funds from the Cheyenne River Sioux 
Tribal Recovery Trust Fund to provide additional compensation 
to its members whose lands were taken.
    The bill would also require the Secretary of the Treasury 
to begin depositing monies into the Fund beginning on the first 
day of the fiscal year beginning after the date of enactment 
and would change the manner in which interest is accrued on the 
Fund by requiring that the Lehman Government Bond index--or a 
similar index determined by the Secretary of the Treasury, 
after consulting with the Tribe--be applied in determining the 
interest. Current law requires the Secretary of the Treasury to 
deposit into the Fund an amount that equals the amount of 
interest that would have accrued had the principal been 
deposited in 2001 and invested in interest-bearing obligations 
of the United States, or in obligations guaranteed as to both 
principal and interest by the United States. This provision was 
included in the substitute amendment after consultation with 
the Department of the Treasury with the support of the 
Department. See infra Letter from Department of the Treasury to 
Rep. Richard Pombo, September 8, 2006 (included herein under 
Executive Communications).

                          Legislative History

    S. 1535 was introduced on July 28, 2005, by Senator 
Johnson, for himself and for Senator Thune, and was referred to 
the Committee on Indian Affairs. On June 14, 2006, a hearing 
was held by the Committee. On August 2, 2006, S. 1535 was 
unanimously passed out of the Committee and ordered reported 
with amendment in the nature of the substitute.

            Committee Recommendation and Tabulation of Vote

    On August 2, 2006, the Committee, in an open business 
session, considered S. 1535. By voice vote, the Committee 
ordered the bill reported favorably, with an amendment in the 
nature of a substitute, to the full Senate with a 
recommendation that the bill do pass.

        Section-by-Section Analysis of the Substitute Amendment


Section 1. Short title

    Section 1 of the substitute amendment amends the title in 
S. 1535 to ``Cheyenne River Sioux Tribe Equitable Compensation 
Amendments Act of 2006''.

Section 2. Findings

    Section 2 of the substitute amendment makes findings that 
the Oahe Dam and Reservoir Project flooded the fertile bottom 
land of the Cheyenne River Sioux Reservation greatly damaging 
the economy and cultural resources of the Cheyenne River Sioux 
Tribe. The Tribe was provided additional compensation by 
Congress with the creation of the Cheyenne River Sioux Tribal 
Recovery Trust Fund Act, however, that act did not provide for 
additional compensation to individual landowners that lost land 
as a result of the Oahe Dam and Reservoir Project. The purposes 
of this Act are to allow the Cheyenne River Sioux Tribe to use 
funds from the Tribal Recovery Trust Fund to compensate 
individual land owners that lost land as a result of the Oahe 
Dam and Reservoir Project and to accelerate capitalization of 
the Cheyenne River Sioux Tribal Recovery Trust Fund.

Section 3. Cheyenne River Sioux Tribe Equitable Compensation

    Section 3 amends the Cheyenne River Sioux Tribe Equitable 
Compensation Act to allow the Tribe to compensate individual 
landowners who lost land to the United States for the Oahe Dam 
and Reservoir Project from the Tribal Recovery Trust Fund. The 
amendments directs the Secretary of the Treasury to make five 
deposits to the Cheyenne River Sioux Tribal Recovery Trust Fund 
beginning the first fiscal year after enactment from the 
general fund of the Treasury. The amount to be deposited in 
each payment would be equal to $58,144,591.60; and an 
additional amount equal to the interest that would have accrued 
if it had been credited on October 1, 2001, the first fiscal 
year after the Tribal Recovery Trust Fund was enacted by P.L. 
106-511.
    The Secretary of the Treasury is directed to invest the 
Fund only in interest bearing obligations of the United States 
and separate the investments made on the principal and on the 
interest into two separate accounts within the Tribal Recovery 
Trust Fund, the principal account and the interest account. The 
interest earned from investing amounts in the principal account 
will be transferred to the interest account.
    The principal account will be invested in equally divisible 
portions in the next publicly issued Treasury obligations 
having a 2-year maturity, a 5-year maturity, and a 10-year 
maturity, respectively. The interest account shall be invested 
and reinvested in eligible obligations having the shortest 
available maturity until the date on which the amounts are 
withdrawn by the Secretary of the Treasury and transferred to 
the Secretary of the Interior for use in accordance with the 
Act.
    At least once each year, the Secretary of the Treasury 
shall review with the Tribe the results of the investment 
activities and financial status of the Fund during the 
preceding calendar year. Before making a modification to the 
investment structure as authorized by the Act, the Secretary of 
the Treasury shall consult with the Tribe with respect to the 
modification.
    On the first day of the fiscal year after enactment, and on 
the first day of each fiscal year thereafter, the Secretary of 
the Treasury shall withdraw and transfer all funds in the 
interest account of the Fund to the Secretary of the Interior 
for use in accordance with the Act.
    Payments of additional compensation to individual 
landowners or their heirs shall not be deposited or transferred 
into any member landowner's Individual Indian Money and shall 
not exceed an amount equal to 44.3 percent of the amount 
transferred by the Secretary of the Interior to the Tribe. The 
Secretary of the Interior shall provide to the Tribe any record 
requested by the Tribe to identify the heirs of member land-
owners.
    Section 3 also amends Section 7 of the underlying law to 
extinguish all claims of an individual landowner, or their 
heirs, on the acceptance of any payment by the Tribe for 
damages resulting from the taking by the United States for the 
Oahe Dam and Reservoir Project of the Pick-Sloan Missouri River 
Basin program.

                   Cost and Budgetary Considerations

    The Congressional Budget Office cost estimate for S. 1535 
is set forth below:

                                     U.S. Congress,
                               Congressional Budget Office,
                                   Washington, DC, August 21, 2006.
Hon. John McCain,
Chairman, Committee on Indian Affairs,
U.S. Senate, Washington, DC.
    Dear Mr. Chairman: The Congressional Budget Office has 
prepared the enclosed cost estimate for S. 1535, the Cheyenne 
River Sioux Tribe Equitable Compensation Amendments Act of 
2006.
    If you wish further details on this estimate, we will be 
pleased to provide them. The CBO staff contact is Daniel 
Hoople.
            Sincerely,
                                          Donald B. Marron,
                                                   Acting Director.
    Enclosure.

S. 1535--Cheyenne River Sioux Tribe Equitable Compensation Amendments 
        Act of 2006

    Summary: S. 1535 would amend the Cheyenne River Sioux Tribe 
Equitable Compensation Act, which was enacted in 2000 to 
resolve a dispute between that tribe and the federal 
government. That act established a trust fund for the benefit 
of the tribe and specifies a schedule for federal deposits to 
the fund. S. 1535 would change the timing and amount of those 
deposits. CBO estimates that enacting S. 1535 would increase 
direct spending by $446 million over the 2007-2011 period (with 
most of that increase in 2011), but would decrease direct 
spending by $442 million in 2012, for a net change in direct 
spending of $4 million over the 2007-2016 period. Enacting the 
bill would not affect revenues.
    S. 1535 contains no new 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. Enacting this legislation would benefit the 
Cheyenne River Sioux Tribe.
    Estimated cost to the Federal Government: The estimated 
budgetary impact of the bill is shown in the following table. 
The budgetary impact of this legislation falls within budget 
function 450 (community and regional development).

----------------------------------------------------------------------------------------------------------------
                                                     By fiscal year, in millions of dollars--
                                --------------------------------------------------------------------------------
                                  2007    2008    2009    2010    2011     2012    2013    2014    2015    2016
----------------------------------------------------------------------------------------------------------------
                                           CHANGES IN DIRECT SPENDING

Spending Under Current Law:
    Transfers to Cheyenne River
     Sioux Tribal Recovery
     Trust Fund:
        Estimated Budget              0       0       0       0       0      442       0       0       0       0
         Authority.............
        Estimated Outlays......       0       0       0       0       0      442       0       0       0       0
Proposed Changes:
    Transfers to Cheyenne River
     Sioux Tribal Recovery
     Trust Fund:
        Estimated Budget              0       0       0       0     407     -442       0       0       0       0
         Authority.............
        Estimated Outlays......       0       0       0       0     407     -442       0       0       0       0
    Expenditure of Interest
     Income:
        Estimated Budget              4       8      12      15       0        0       0       0       0       0
         Authority.............
        Estimated Outlays......       4       8      12      15       0        0       0       0       0       0
    Total Changes:
        Estimated Budget              4       8      12      15     407     -442       0       0       0       0
         Authority.............
        Estimated Outlays......       4       8      12      15     407     -442       0       0       0       0
Spending Under S. I535:
        Estimated Budget              4       8      12      15     407        0       0       0       0       0
         Authority.............
        Estimated Outlays......       4       8      12      15     407        0       0       0       0       0
----------------------------------------------------------------------------------------------------------------

    Basis of estimate: By changing the amount and timing of 
scheduled deposits to the affected tribal trust fund, CBO 
estimates that enacting S. 1535 would reduce net direct 
spending by $35 million over the 2007-2016 period. We also 
estimate that allowing the tribe to spend interest earned on 
balances in the trust fund would increase direct spending by $4 
million in 2007 and $39 million over the 2007-2016 period. 
Thus, CBO estimates that enacting the bill would increase net 
direct spending by $4 million over the next 10 years. For this 
estimate, CBO assumes that S. 1535 will be enacted before the 
end of fiscal year 2006 and that deposits to the trust fund 
would begin in 2007.

Transfers to the trust fund under current law

    In 2000, the Congress enacted the Cheyenne River Sioux 
Tribe Equitable Compensation Act to compensate the tribe for 
104,492 acres of land acquired by the federal government for 
the Oahe Dam and Reservoir Project, which is part of the Pick-
Sloan Missouri River Basin program. The act created the 
Cheyenne River Sioux Tribal Recovery Trust Fund and directs the 
Secretary of the Treasury to transfer into the trust fund $291 
million plus the amount of interest that would be accrued if 
the amount had been deposited in fiscal year 2002. This total 
transfer, which CBO estimates at approximately $442 million, is 
set to occur in 2012 under current law. Once the Secretary 
completes the transfer, all monetary claims against the United 
States for the Oahe Dam and Reservoir Project will be 
extinguished. At that time, consistent with the treatment of 
similar tribal trust funds, amounts within the trust fund will 
be considered under tribal ownership.
    The federal budget excludes trust funds that are held and 
managed in a fiduciary capacity by the federal government on 
behalf of Indian tribes. Because the affected trust fund will 
be considered nonbudgetary once it is fully capitalized, the 
scheduled deposit to the trust fund in 2012 will be considered 
direct spending for a transfer of funds to a nonfederal entity. 
Thereafter, subsequent cash flows related to the fund will have 
no effect on the federal budget.

Transfers to the trust fund under S. 1535

    S. 1535 would direct the Secretary of the Treasury to begin 
deposits to the trust fund earlier than under current law. For 
each of the five years following enactment, the bill would 
direct the Secretary to transfer to the fund $58 million plus 
the amount of interest that would have accrued had such a 
deposit been made in 2001. CBO estimates such transfers would 
total $407 million over the 2007-2011 period--$290 million for 
principal and $117 million for forgone interest.
    Because the conditions necessary to remove the fund from 
the federal budget (i.e. final extinguishment of claims against 
the federal government) would not be met until the final 
deposit is made, transfers to the fund during the first four 
years would be considered intragovernmental and would have no 
net effect on the federal budget. Upon the final deposit in 
2011, however, the trust fund would become nonbudgetary. 
Reclassifying the trust fund at that time would be recorded in 
the budget as direct spending of the full balance of the fund--
$407 million.
    By accelerating the schedule of payments to the trust fund, 
S. 1535 would eliminate the Secretary's current obligation to 
capitalize the trust fund in fiscal year 2012. As a result, CBO 
estimates that proposed changes to federal transfers would 
reduce direct spending by $442 million in that year and by $35 
million over the 2007-2016 period.

Expenditure of interest income under S. 1535

    Current law directs the Secretary to distribute any 
interest earned by the trust fund to the tribe. Under the 
current schedule, the fund will carry no balances and, 
therefore, will generate no interest until it is fully 
capitalized and reclassified as nonbudgetary in 2012. 
Therefore, under current law, the federal budget does not 
include any direct spending for the tribe's use of interest. 
Under S. 1535, interest would accrue on deposits made in each 
of the four years prior to the reclassification of the trust 
fund in 2011. CBO estimates that distributing interest to the 
tribe in those years would increase direct spending by $4 
million in 2007 and $39 million over the 2007-2016 period.
    Estimated impact on state, local, and tribal governments: 
S. 1535 contains no intergovernmental mandates as defined in 
UMRA and would impose no costs on state, local, or tribal 
government. Enacting this legislation would benefit the 
Cheyenne River Sioux Tribe.
    Estimated impact on the private sector: This bill contains 
no new private-sector mandates as defined in UMRA.
    Estimate prepared by: Federal Costs: Daniel Hoople. Impact 
on State, Local, and Tribal Governments: Marjorie Miller. 
Impact on the Private Sector: Carla-Marie Ulerie.
    Estimate approved by: Peter H. Fontaine, Deputy Assistant 
Director for Budget Analysis.

               Regulatory and Paperwork 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 and paperwork impact that would be 
incurred in carrying out the bill. The Committee has concluded 
that the regulatory and paperwork impacts of S. 1535 should be 
de minimis.

                        Executive Communications

    The Committee has received the following executive 
communication on S. 1535.


                        Changes In Existing Law

    In compliance with subsection 12 of rule XXVI of the 
Standing Rules of the Senate, changes in existing law made by 
the bill S. 1535, as ordered reported, are shown as follows 
(existing law proposed to be omitted is enclosed in black 
brackets, new language to be added in italic, existing law to 
which no change is proposed is shown in roman):

  CHEYENNE RIVER SIOUX TRIBE EQUITABLE COMPENSATION AMENDMENTS ACT OF 
                                  2006


Public Law 106-511; 114 Stat. 2365

           *       *       *       *       *       *       *



SEC. 102. FINDINGS AND PURPOSES.

    (a) Findings.--Congress finds that--
          (1) by enacting the Act of December 22, 1944 (58 
        Stat. 887, 665; 33 U.S.C. 701-1 et seq.), commonly 
        known as the ``Flood Control Act of 1944'', Congress 
        approved the Pick-Sloan Missouri River Basin program 
        referred to in this section as the ``Pick-Sloan 
        program''--
                  (A) to promote the general economic 
                development of United States;
                  (B) to provide for irrigation above Sioux 
                City, Iowa;
                  (C) to protect urban and rural areas from 
                devastating floods of the Missouri River; and
                  (D) for other purposes;
          (2) the Oahe Dam and Reservoir project--
                  (A) is a major component of the Pick-Sloan 
                program, and contributes to the economy of the 
                United States by generating a substantial 
                amount of hydropower and
                  (B) overlies the eastern boundary of the 
                Cheyenne River Sioux Indian Reservation; and
                  (C) has not only contributed little to the 
                economy of the Tribe, but has severely damaged 
                the economy of the Tribe and members of the 
                Tribe by inundating the fertile, wooded bottom 
                lands of the Tribe along the Missouri River 
                that constituted the most productive 
                agricultural and pastoral lands of the Tribe 
                and the homeland of the members of the Tribe;
          (3) the Secretary of the Interior appointed a Joint 
        Tribal Advisory Committee that examined the Oahe Dam 
        and Reservoir project and concluded that--
                  (A) the United States did not justly or 
                fairly compensate the Tribe and member 
                landowners for the Oahe Dam and Reservation 
                project, under which the United States acquired 
                104,492 acres of land of the Tribe and member 
                landowners; and
                  (B) the Tribe and member landowners should be 
                adequately compensated for that land;
                  [(A) the Federal Government did not justify, 
                or fairly compensate the Tribe for, the Oahe 
                Dam and Reservoir project when the Federal 
                Government acquired acres of land of the Tribe 
                for that project; and
                  [(B) the Tribe should be adequately 
                compensated for the land acquisition described 
                in subparagraph (A);]]

           *       *       *       *       *       *       *

    (b) Purposes.--The purposes of this title are as follows:
          (1) To provide for additional financial compensation 
        to the Tribe and member landowners for the acquisition 
        by the Federal Government of 104,492 acres of land of 
        the Tribe and member landowners for the Oahe Dam and 
        Reservoir project in a manner consistent with the 
        determinations of the Comptroller General described in 
        subsection (a)(4).

           *       *       *       *       *       *       *


SEC. 103. DEFINITIONS.

    In this title:
          (1) Member landowner.--The term `member landowner' 
        means a member of the Tribe (or an heir of such a 
        member) that owned land (including land allotted under 
        the Act of February 8, 1887 (24 Stat. 388, chapter 
        119)) located on the Cheyenne River Sioux Reservation 
        that was acquired by the United States for the Oahe Dam 
        and Reservoir Project.
          (2) Tribal council.--The term ``Tribal Council'' 
        means the governing body of the Tribe.
          [(1)] (3) Tribe.--The term ``Tribe'' means the 
        Cheyenne River Sioux Tribe, which is comprised of the 
        Itazipco, Siha Sapa, Minniconjou, and Oohenumpa bands 
        of the Great Sioux Nation that reside on the Cheyenne 
        River Reservation, located in central South Dakota.

           *       *       *       *       *       *       *


SEC. 104. CHEYENNE RIVER SIOUX TRIBAL RECOVERY TRUST FUND.

           *       *       *       *       *       *       *


    (b) Funding.--On the first day of the fiscal year beginning 
after the date of enactment of the Cheyenne River Sioux Tribe 
Equitable Compensation Amendments Act of 2006 and on the first 
day of each of the following 4 fiscal years (referred to in 
this section as the `capitalization dates'), the Secretary of 
the Treasury shall deposit into the Fund, from amounts in the 
general fund of the Treasury--
          (1) $58,144,591.60; and
          (2) an additional amount equal to the amount of 
        interest that would have accrued if--
                  (A) the amount described in paragraph (1) had 
                been--
                          (i) credited to the principal account 
                        as described in subsection 
                        (c)(2)(B)(i)(I) on the first day of the 
                        fiscal year beginning October 1, 2001; 
                        and
                          (ii) invested as described in 
                        subsection (c)(2)(C) during the period 
                        beginning on the date described in 
                        clause (i) and ending on the last day 
                        of the fiscal year before the fiscal 
                        year in which that amount is deposited 
                        into the Fund; and
                  (B) the interest that would have accrued 
                under subparagraph (A) during the period 
                described in subparagraph (A)(ii) had been--
                          (i) credited to the interest account 
                        under subsection (c)(2)(B)(ii); and
                          (ii) invested during that period in 
                        accordance with subsection 
                        (c)(2)(D)(I).
    [(b) Funding.--On the first day of the 11th fiscal year 
that begins after the date of enactment of this Act, the 
Secretary of the Treasury shall, from the General Fund of the 
Treasury, deposit into the Fund established under subsection 
(a)--
          [(1) $290,722,958; and
          [(2) an additional amount that equals the amount of 
        interest that would have accrued on the amount 
        described in paragraph (1) if such amount had been 
        invested in interest-bearing obligations of the United 
        States, or in obligations guaranteed as to both 
        principal and interest by the United States, on the 
        first day of the first fiscal year that begins after 
        the date of enactment of this Act and compounded 
        annually thereafter.]

           *       *       *       *       *       *       *

    (c) Investments.--
          (1) Eligible obligations.--Notwithstanding any other 
        provision of law, the Secretary of the Treasury shall 
        invest the Fund only in interest-bearing obligations of 
        the United States issued directly to the Fund.
          (2) Investment requirements.--
                  (A) In general.--The Secretary of the 
                Treasury shall invest the Fund in accordance 
                with this paragraph.
                  (B) Separate investments of principal and 
                interest.--
                          (i) Principal account.--The amounts 
                        deposited into the Fund under 
                        subsection (b)(1) shall be--
                                  (I) credited to a principal 
                                account within the Fund 
                                (referred to in this paragraph 
                                as the `principal account'); 
                                and
                                  (II) invested in accordance 
                                with subparagraph (C).
                          (ii) Interest account.--
                                  (I) In general.--The interest 
                                earned from investing amounts 
                                in the principal account shall 
                                be--
                                          (aa) transferred to a 
                                        separate interest 
                                        account within the Fund 
                                        (referred to in this 
                                        paragraph as the 
                                        `interest account'); 
                                        and
                                          (bb) invested in 
                                        accordance with 
                                        subparagraph (D).
                                  (II) Crediting.--The interest 
                                earned from investing amounts 
                                in the interest account, and 
                                the amounts deposited into the 
                                Fund under subsection (b)(2), 
                                shall be credited to the 
                                interest account.
                  (C) Investment of principal account.--
                          (i) Initial investment.--Amounts in 
                        the principal account shall be 
                        initially invested in eligible 
                        obligations with the shortest available 
                        maturity.
                          (ii) Subsequent investments.--
                                  (I) In general.--On the date 
                                on which the amount in the 
                                principal account is divisible 
                                into 3 substantially equal 
                                portions, each portion shall be 
                                invested in eligible 
                                obligations that are identical 
                                (except for transferability) to 
                                the next-issued publicly-issued 
                                Treasury obligations having a 
                                2-year maturity, a 5-year 
                                maturity, and a 10-year 
                                maturity, respectively.
                                  (II) Maturity of 
                                obligations.--As each 2-year, 
                                5-year, and 10-year eligible 
                                obligation under subclause (I) 
                                matures, the principal of the 
                                maturing eligible obligation 
                                shall be initially invested in 
                                accordance with clause (i) 
                                until the date on which the 
                                principal is reinvested 
                                substantially equally in the 
                                eligible obligations that are 
                                identical (except for 
                                transferability) to the next-
                                issued publicly-issued Treasury 
                                obligations having 2-year, 5-
                                year, and 10-year maturities.
                          (iii) Discontinuation of issuance of 
                        obligations.--If the Department of the 
                        Treasury discontinues issuing to the 
                        public obligations having 2-year, 5-
                        year, or 10-year maturities, the 
                        principal of any maturing eligible 
                        obligation shall be reinvested 
                        substantially equally in available 
                        eligible obligations that are identical 
                        (except for transferability) to the 
                        next-issued publicly-issued Treasury 
                        obligations with maturities of longer 
                        than 1 year.
                  (D) Investment of interest account.--
                          (i) Before each capitalization 
                        date.--For purposes of subsection 
                        (b)(2)(B), amounts considered as if 
                        they were in the interest account of 
                        the Fund shall be invested in eligible 
                        obligations that are identical (except 
                        for transferability) to publicly-issued 
                        Treasury obligations that have 
                        maturities that coincide, to the 
                        greatest extent practicable, with the 
                        applicable capitalization date for the 
                        Fund.
                          (ii) On and after each capitalization 
                        date.--On and after each capitalization 
                        date, amounts in the interest account 
                        shall be invested and reinvested in 
                        eligible obligations that are identical 
                        (except for transferability) to 
                        publicly-issued Treasury obligations 
                        that have maturities that coincide, to 
                        the greatest extent practicable, with 
                        the date on which the amounts will be 
                        withdrawn by the Secretary of the 
                        Treasury and transferred to the 
                        Secretary of the Interior for use in 
                        accordance with subsection (d).
                  (E) Par purchase price.--
                          (i) In general.--To preserve in 
                        perpetuity the amount in the principal 
                        account, the purchase price of an 
                        eligible obligation purchased as an 
                        investment of the principal account 
                        shall not exceed the par value of the 
                        obligation.
                          (ii) Treatment.--At the maturity of 
                        an eligible obligation described in 
                        clause (i), any discount from par in 
                        the purchase price of the eligible 
                        obligation shall be treated as interest 
                        paid at maturity.
                  (F) Holding to maturity.--Eligible 
                obligations purchased pursuant to this 
                paragraph shall be held to their maturities.
          (3) Annual review of investment activities.--Not less 
        frequently than once each calendar year, the Secretary 
        of the Treasury shall review with the Tribe the results 
        of the investment activities and financial status of 
        the Fund during the preceding calendar year.
          (4) Modifications.--
                  (A) In general.--If the Secretary of the 
                Treasury determines that investing the Fund in 
                accordance with paragraph (2) is not 
                practicable or would result in adverse 
                consequences to the Fund, the Secretary of the 
                Treasury shall modify the requirements to the 
                least extent necessary, as determined by the 
                Secretary of the Treasury.
                  (B) Consultation.--Before making a 
                modification under subparagraph (A), the 
                Secretary of the Treasury shall consult with 
                the Tribe with respect to the modification.
    [(c) Investment of Trust Fund.--It shall be the duty of the 
Secretary of the Treasury to invest such portion of the Fund as 
is not, in the Secretary of the Treasury's judgment, required 
to meet current withdrawals. Such investments may be made only 
in interest-bearing obligations of the United States or in 
obligations guaranteed as to both principal and interest by the 
United States. The Secretary of the Treasury shall deposit 
interest resulting from such investments into the Fund.]

           *       *       *       *       *       *       *

    (d) Payment of Interest to Tribe.--
          (1) Withdrawal of interest.--Beginning on the first 
        day of the fiscal year beginning after the date of 
        enactment of the Cheyenne River Sioux Tribe Equitable 
        Compensation Amendments Act of 2006, and on the first 
        day of each fiscal year thereafter, the Secretary of 
        the Treasury shall withdraw and transfer all funds in 
        the interest account of the Fund to the Secretary of 
        the Interior for use in accordance with paragraph (2), 
        to be available without fiscal year limitation.
          [(1) Withdrawal of interest.--Beginning on the first 
        day of the 11th fiscal year after the date of enactment 
        of this Act and, on the first day of each fiscal year 
        thereafter, the Secretary of the Treasury shall 
        withdraw the aggregate amount of interest deposited 
        into the Fund for that fiscal year and transfer that 
        amount to the Secretary of the Interior for use in 
        accordance with paragraph (2). Each amount so 
        transferred shall be available without fiscal year 
        limitation.]

           *       *       *       *       *       *       *

    (f) Plan.--
          (1) In general.--Not later than 18 months after the 
        date of enactment of this Act, the governing body of 
        the Tribe shall prepare a plan for the use of the 
        payments to the Tribe under subsection (d) (referred to 
        in this subsection as the ``plan'').
          (2) Contents of plan.--The plan shall provide for the 
        manner in which the Tribe shall expend payments to the 
        Tribe under subsection (d) to promote--
                  (A) economic development;
                  (B) infrastructure development; (C) the 
                educational, health, recreational, and social 
                welfare objectives of the Tribe and its 
                members; or (D) any combination of the 
                activities described in subparagraphs (A) 
                through (c).
          (3) Member landowners.--
                  (A) Additional compensation.--
                          (i) In general.--Except as provided 
                        in clause (iii), the plan may provide 
                        for the payment of additional 
                        compensation to member landowners for 
                        acquisition of land by the United 
                        States for use in the Oahe Dam and 
                        Reservoir Project.
                          (ii) Determination of heirs.--An heir 
                        of a member landowner shall be 
                        determined in accordance with the 
                        probate code governing the estate of 
                        the member landowner.
                          (iii) Exception.--During any fiscal 
                        year, payments of additional 
                        compensation to a member landowner 
                        under clause (i) shall not--
                                  (I) be deposited or 
                                transferred into--
                                          (aa) the Individual 
                                        Indian Money account of 
                                        the member landowner; 
                                        or
                                          (bb) any other fund 
                                        held by the United 
                                        States on behalf of the 
                                        member landowner; or
                                  (II) exceed an amount equal 
                                to 44.3 percent of the amount 
                                transferred by the Secretary of 
                                the Interior to the Tribe under 
                                paragraph (2).
                  (B) Provision of records.--To assist the 
                Tribe in processing claims of heirs of member 
                landowners for land acquired by the United 
                States for use in the Oahe Dam and Reservoir 
                Project, the Secretary of the Interior shall 
                provide to the Tribe, in accordance with 
                applicable laws (including regulations), any 
                record requested by the Tribe to identify the 
                heirs of member landowners by the date that is 
                90 days after the date of receipt of a request 
                from the Tribe.''.
        [(3)] (4) Plan review and revision.--
                  (A) In general.--The Tribal Council shall 
                make available for review and comment by the 
                members of the Tribe a copy of the plan before 
                the plan becomes final, in accordance with 
                procedures established by the Tribal Council.
                  (B) Updating of plan.--The Tribal Council 
                may, on an annual basis, revise the plan to 
                update the plan. In revising the plan under 
                this subparagraph, the Tribal Council shall 
                provide the members of the Tribe opportunity to 
                review and comment on any proposed revision to 
                the plan.
                  (C) Consultation.--In preparing the plan and 
                any revisions to update the plan, the Tribal 
                Council shall consult with the Secretary of the 
                Interior and the Secretary of Health and Human 
                Services.
          [(4)] (5) Audit.--
                  (A) In general.--The activities of the Tribe 
                in carrying out the plan shall be audited as 
                part of the annual single-agency audit that the 
                Tribe is required to prepare pursuant to the 
                Office of Management and Budget circular 
                numbered A-133.
                  (B) Determination by auditors.--The auditors 
                that conduct the audit described in 
                subparagraph (A) shall--
                          (i) determine whether funds received 
                        by the Tribe under this section for the 
                        period covered by the audit were 
                        expended to carry out the plan in a 
                        manner consistent with this section; 
                        and
                          (ii) include in the written findings 
                        of the audit the determination made 
                        under clause (i).
                  (C) Inclusion of findings with publication of 
                proceedings of tribal council.--A copy of the 
                written findings of the audit described in 
                subparagraph (A) shall be inserted in the 
                published minutes of the Tribal Council 
                proceedings for the session at which the audit 
                is presented to the Tribal Council.

           *       *       *       *       *       *       *


SEC. 105. ELIGIBILITY OF TRIBE FOR CERTAIN PROGRAMS AND SERVICES.

    No payment made to the Tribe or any member landowner under 
this title shall result in the reduction or denial of any 
service or program with respect to which, under Federal law--
          (1) the Tribe is otherwise entitled because of the 
        status of the Tribe as a federally recognized Indian 
        tribe; or
          (2) any individual who is a member of the Tribe is 
        entitled because of the status of the individual as a 
        member of the Tribe.

           *       *       *       *       *       *       *


SEC. 107. EXTINGUISHMENT OF CLAIMS.

    (a) In General.--On the date on which the final payment is 
deposited into the Fund under section 104(b), all monetary 
claims that the Tribe has or may have against the United States 
for the taking by the United States of land and property of the 
Tribe for the Oahe Dam and Reservoir Project of the Pick-Sloan 
Missouri River Basin program shall be extinguished.
    (b) Effect of Acceptance of Payment.--On acceptance by a 
member landowner or an heir of a member landowner of any 
payment by the Tribe for damages resulting from the taking by 
the United States of land or property of the Tribe for the Oahe 
Dam and Reservoir Project of the Pick-Sloan Missouri River 
Basin program, all monetary claims that the member landowner or 
heir has or may have against the United States for the taking 
shall be extinguished.
    [Upon the deposit of funds (together with interest) into 
the Fund under section 104(b), all monetary claims that the 
Tribe has or may have against the United States for the taking, 
by the United States, of the land and property of the Tribe for 
the Oahe Dam and Reservoir Project of the Pick-Sloan Missouri 
River Basin program shall be extinguished.]