[House Report 110-541]
[From the U.S. Government Publishing Office]




110th Congress                                            Rept. 110-541
                        HOUSE OF REPRESENTATIVES
 2d Session                                                      Part 1

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



 
TO PROVIDE FOR AND APPROVE THE SETTLEMENT OF CERTAIN LAND CLAIMS OF THE 
                       BAY MILLS INDIAN COMMUNITY

                                _______
                                

                 March 6, 2008.--Ordered to be printed

                                _______
                                

  Mr. Rahall, from the Committee on Natural Resources, submitted the 
                               following

                              R E P O R T

                             together with

                            DISSENTING VIEWS

                        [To accompany H.R. 2176]

      [Including cost estimate of the Congressional Budget Office]

  The Committee on Natural Resources, to whom was referred the 
bill (H.R. 2176) to provide for and approve the settlement of 
certain land claims of the Bay Mills Indian Community, having 
considered the same, report favorably thereon with an amendment 
and recommend that the bill as amended do pass.
  The amendment is as follows:
  Strike all after the enacting clause and insert the 
following:

SECTION 1. DEFINITIONS.

  For the purposes of this Act, the following definitions apply:
          (1) Alternative lands.--The term ``alternative lands'' means 
        those lands identified as alternative lands in the Settlement 
        of Land Claim.
          (2) Charlotte beach lands.--The term ``Charlotte Beach 
        lands'' means those lands in the Charlotte Beach area of 
        Michigan and described as follows: Government Lots 1, 2, 3, and 
        4 of Section 7, T45N, R2E, and Lot 1 of Section 18, T45N, R2E, 
        Chippewa County, State of Michigan.
          (3) Community.--The term ``Community'' means the Bay Mills 
        Indian Community, a federally recognized Indian tribe.
          (4) Settlement of land claim.--The term ``Settlement of Land 
        Claim'' means the agreement between the Community and the 
        Governor of the State of Michigan executed on August 23, 2002, 
        and filed with the Office of Secretary of State of the State of 
        Michigan, including the document titled ``Addendum to 
        Settlement of Land Claim'', executed by the parties on November 
        13, 2007.
          (5) Secretary.--The term ``Secretary'' means the Secretary of 
        the Interior.

SEC. 2. ACCEPTANCE OF ALTERNATIVE LANDS AND EXTINGUISHMENT OF CLAIMS.

  (a) Land Into Trust; Part of Reservation.--
          (1) Land into trust.--The Secretary shall take the 
        alternative lands into trust for the benefit of the Community 
        not later than 30 days after both of the following have 
        occurred:
                  (A) The Secretary has received a title insurance 
                policy for the alternative lands that shows that the 
                alternative lands are not subject to mortgages, liens, 
                deeds of trust, options to purchase, or other security 
                interests.
                  (B) The Secretary has confirmed that the National 
                Environmental Policy Act of 1969 has been complied with 
                regarding the trust acquisition of the property.
          (2) Part of reservation.--The alternative lands shall become 
        part of the Community's reservation immediately upon attaining 
        trust status.
  (b) Gaming.--The alternative lands shall be taken into trust as 
provided in this section as part of the settlement and extinguishment 
of the Community's Charlotte Beach land claims, and so shall be deemed 
lands obtained in settlement of a land claim within the meaning of 
section 20(b)(1)(B)(i) of the Indian Gaming Regulatory Act (25 U.S.C. 
2719; Public Law 100-497).
  (c) Extinguishment of Claims.--Concurrent with the Secretary taking 
the alternative lands into trust under subsection (a), any and all 
claims by the Community to the Charlotte Beach lands or against the 
United States, the State of Michigan or any subdivision thereof, the 
Governor of the State of Michigan, or any other person or entity by the 
Community based on or relating to claims to the Charlotte Beach lands 
(including without limitation, claims for trespass damages, use, or 
occupancy), whether based on aboriginal or recognized title, are hereby 
extinguished. The extinguishment of these claims is in consideration 
for the benefits to the Community under this Act.

SEC. 3. EFFECTUATION AND RATIFICATION OF AGREEMENT.

  (a) Ratification.--The United States approves and ratifies the 
Settlement of Land Claim, except that the last sentence in section 10 
of the Settlement of Land Claim is hereby deleted.
  (b) Not Precedent.--The provisions contained in the Settlement of 
Land Claim are unique and shall not be considered precedent for any 
future agreement between any tribe and State.
  (c) Enforcement.--The Settlement of Land Claim shall be enforceable 
by either the Community or the Governor according to its terms. 
Exclusive jurisdiction over any enforcement action is vested in the 
United States District Court for the Western District of Michigan.

                          PURPOSE OF THE BILL

    The purpose of H.R. 2176 is to provide for and approve the 
settlement of certain land claims of the Bay Mills Indian 
Community.

                          BACKGROUND AND NEED

    The Bay Mills Indian Community is a federally recognized 
Indian tribe, which has adopted a constitution, its name, and 
form of government pursuant to the Indian Reorganization Act. 
The Community currently has approximately 1,500 tribal members.
    The present-day Community's ancestors lived in semi-
autonomous bands of Chippewa Indians on the shores of the Upper 
Great Lakes in what is now Michigan and Ontario. Beginning in 
the mid-1600's the French and British established trading sites 
in these areas to trade with the local Indians. The Community's 
ancestors signed a peace treaty with the United States in 1795 
to end fighting on the U.S. western frontier.
    By 1836, the Chippewa bands had formed personal 
relationships with many European settlers resulting in 
intermarriage and economic interdependence. Around this time a 
treaty was signed which identified the bands as ``the six bands 
residing at or near Sault Ste. Marie''. Historians further 
identified the bands by location as: (1) St. Mary's River 
Rapids; (2) Waiskey Bay; (3) Tahquamenon River mouth; (4) 
Whitefish Bay; (5) Garden River and Sugar Island; and (6) Hay 
Lake area of St. Mary's River, which is now known as Charlotte 
Beach.
    The settlement agreement ratified by this legislation would 
settle the longstanding land claim the Community has to 110 
acres in Charlotte Beach. These lands were designated for 
withdrawal from the public domain for use by the Ottawa and 
Chippewa Indians pursuant to the 1855 Treaty of Detroit. In 
1857, the lands were deeded to the Governor to be held in trust 
for the ancestral bands of the Community. Eventually, these 
lands were illegally sold for unpaid taxes without the consent 
of the United States nor the knowledge of the bands. Currently, 
some 100 non-Indian landowners live on the Charlotte Beach land 
under a clouded title, unable to acquire insurance and with 
depressed land values.
    The Bay Mills Indian Community filed suit in 1996 in 
federal court against the current titleholders of the land in 
Charlotte Beach and also filed suit against the State of 
Michigan in the state court of claims. The federal case was 
dismissed on procedural grounds because the suit did not 
include other parties holding a similar claim, meaning the 
Sault Ste. Marie Tribe of Chippewa Indians. This decision was 
affirmed on appeal; however, the court did find that the Bay 
Mills Indian Community and the Sault Ste. Marie Tribe of 
Chippewa Indians both trace their ancestry to the bands named 
in the deed when the lands in question were held by the state. 
The state case was dismissed for failure to bring the claim 
within the state's statute of limitations.
    Congress has the sole authority and responsibility to 
extinguish a land claim brought by an Indian tribe.

Settlement agreement

    Two Governors of the State of Michigan have signed a 
settlement agreement with the Bay Mills Indian Community. 
Governor John Engler signed a settlement agreement on behalf of 
the state in August, 2002. Governor Jennifer Granholm signed an 
addendum to that settlement agreement on November 13, 2007. In 
a letter to the Committee on Resources on June 23, 2004, 
Governor Engler wrote, ``As Governor of Michigan, it was my 
duty to negotiate the land settlement agreements between the 
State of Michigan and Bay Mills and the Sault Tribe in 2002.'' 
The settlement agreement would:
          --Relinquish the Bay Mills Indian Community's claim 
        to the lands in Charlotte Beach, Michigan, in return 
        for land to be taken into trust in Port Huron, 
        Michigan;
          --Allow for gaming to be conducted on the Port Huron 
        lands;
          --Provide a formula through which a percentage of net 
        win revenue of electronic games would go to the State 
        and local governments including the City of Port Huron, 
        the county, and the county school district;
          --Ratify a restriction limiting to three, the total 
        number of casinos the Community could operate in 
        Michigan.

                            COMMITTEE ACTION

    H.R. 2176 was introduced on May 3, 2007 by Rep. Bart Stupak 
(D-MI) for himself and Rep. Candice Miller (R-MI), and the bill 
was referred to the Committee on Natural Resources.
    The Committee on Natural Resources held a hearing on the 
bill on February 6, 2008. A markup session was held by the 
Committee on February 13, 2008. Chairman Rahall (D-WV) offered 
an en bloc amendment to ensure compliance with the National 
Environmental Policy Act (NEPA), and to add to the bill the 
date of the addendum to the settlement of land agreement signed 
by the Bay Mills Indian Community and Governor Jennifer 
Granholm. Further, the en bloc amendment clarifies that all 
claims against the United States, State of Michigan, or any 
other person be extinguished concurrent with the Secretary 
taking land into trust for the Community. Chairman Rahall's en 
bloc amendment was agreed to by voice vote.
    Rep. Heller (R-NV) offered an amendment to the bill that 
would delete Sec. 2(b) from the bill. Sec. 2(b) designates that 
lands taken into trust pursuant to this legislation would be 
deemed obtained in the settlement of a land claim under the 
Indian Gaming Regulatory Act (IGRA). Rep. Heller's amendment 
failed by a rollcall vote of 3 yeas and 16 nays, as follows:


    Rep. Heller (R-NV) also offered an amendment to the bill to 
authorize, rather than direct, the Secretary of Interior to 
take lands into trust for the Community. Further, the amendment 
would delete the provision of the bill which deems the lands 
taken into trust as part of a land settlement under the Indian 
Gaming Regulatory Act. In addition, the amendment would, prior 
to gaming activities commencing, require the Secretary to 
consult with nearby state, local and tribal officials to 
determine if the land acquisition is in the best interest of 
the Bay Mills Indian Community and the surrounding communities. 
It would further require the Governor concur with the 
determination as required in IGRA Sec. 20(b)(1)(A). Finally, 
the amendment would require the Secretary of the Interior to 
give greater scrutiny in reviewing the Secretary's findings 
then currently required by regulation. Rep. Heller's amendment 
failed by a rollcall vote of 5 yeas and 19 nays, as follows:


    The Committee on Natural Resources then ordered H.R. 2176 
favorably reported to the House of Representatives, as amended, 
by a rollcall vote of 21 yeas and 5 nays, as follows:


                      SECTION-BY-SECTION ANALYSIS

Section 1. Definitions

    Section 1 provides the definitions of terms used in the 
bill including ``Alternative Lands,'' ``Charlotte Beach 
Lands,'' ``Community,'' ``Settlement of Land Claim,'' and 
``Secretary.''

Section 2. Acceptance of alternative lands and extinguishment of claims

    Section 2(a) provides direction to the Secretary of the 
Interior to take lands into trust for the Community within 30 
days of receiving a title insurance policy proving the lands to 
be free of mortgages, liens, or other security interests. The 
specific lands to be placed in trust are identified in the 
Settlement of Land Claim Agreement between the Governor of 
Michigan and the Community. Further, this section provides for 
the lands to be considered part of the reservation of the Bay 
Mills Indian Community.
    Section 2(b) provides the lands taken in trust be deemed as 
obtained as part of a land settlement within the meaning of 
section 20(b)(1)(B)(I) of the Indian Gaming Regulatory Act (25 
U.S.C. 2719).
    Section 2(c) provides that all claims against the United 
States, the State of Michigan, or any other person by the Bay 
Mills Indian Community relating to the Charlotte Beach lands, 
be extinguished concurrent with the Secretary taking land into 
trust for the Community.

Section 3. Effectuation and ratification of agreement

    Section 3(a) provides for the ratification of the 
Settlement of Land Claim signed between the State of Michigan 
and the Bay Mills Indian Community on August 23, 2002 as well 
as the Addendum signed between the parties on November 13, 
2007, except for the last sentence in section 10 of the 2002 
agreement. Section 10 of the 2002 agreement contains support 
for a severability clause whereby if any portion of the 
agreement is found to be unconstitutional, the parties intend 
for the remaining part of the agreement to remain in place. 
Section 10 also holds that no changes made to the settlement 
agreement would be binding without concurrence by the Governor 
and approval of a resolution by the Community.
    Section 3(b) provides that this settlement agreement is not 
intended to set a precedent.
    Section 3(c) provides the U.S. District Court for the 
Western District of Michigan with jurisdiction over enforcement 
of the settlement agreement.

            COMMITTEE OVERSIGHT FINDINGS AND RECOMMENDATIONS

    Regarding clause 2(b)(1) of rule X and clause 3(e)(1) of 
rule XIII of the Rules of the House of Representatives, the 
Committee on Natural Resources' oversight findings and 
recommendations are reflected in the body of this report.

                   CONSTITUTIONAL AUTHORITY STATEMENT

    Article 1, section 8, clause 3, of the Constitution of the 
United States grants Congress the authority to enact this 
legislation.

                    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 provision that would increase direct 
spending.
    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 provide for the settlement of 
certain land claims of the Bay Mills Indian Community.
    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. 2176--A bill to provide for and approve the settlement of certain 
        land claims of the Bay Mills Indian Community

    H.R. 2176 would ratify an agreement between the state of 
Michigan and the Bay Mills Indian Community regarding the 
tribe's claim to land in northern Michigan, known as Charlotte 
Beach. CBO estimates that this bill would have no significant 
effect on the federal budget.
    H.R. 2176 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.
    The agreement that would be ratified by the bill stipulates 
that the tribe relinquish all claims to the Charlotte Beach 
property and that Michigan give the tribe an alternative parcel 
of land in Port Huron, Michigan. The legislation would require 
the Secretary of the Interior to take that land into trust for 
the tribe and proclaim it to be part of the tribe's 
reservation, provided that certain conditions are met. 
According to information from the Bureau of Indian Affairs and 
the tribe, the lands would primarily be used for gaming 
purposes.
    The staff contact for this estimate is Leigh Angres. The 
estimate was approved by Theresa Gullo, Deputy Assistant 
Director for Budget Analysis.

                    COMPLIANCE WITH PUBLIC LAW 104-4

    This bill contains no unfunded mandates.

                           EARMARK STATEMENT

    H.R. 2176 does not contain any congressional earmarks, 
limited tax benefits, or limited tariff benefits as defined in 
clause 9(d), 9(e), or 9(f) of rule XXI.

                PREEMPTION OF STATE, LOCAL OR TRIBAL LAW

    This bill does not preempt state, local or tribal law.

                        CHANGES IN EXISTING LAW

    If enacted, this bill would make no changes in existing 
law.



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