[House Report 110-542]
[From the U.S. Government Publishing Office]




110th Congress                                            Rept. 110-542
                        HOUSE OF REPRESENTATIVES
 2d Session                                                      Part 1

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



 
TO PROVIDE FOR AND APPROVE THE SETTLEMENT OF CERTAIN LAND CLAIMS OF THE 
               SAULT STE. MARIE TRIBE OF CHIPPEWA INDIANS

                                _______
                                

                 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. 4115]

      [Including cost estimate of the Congressional Budget Office]

  The Committee on Natural Resources, to whom was referred the 
bill (H.R. 4115) to provide for and approve the settlement of 
certain land claims of the Sault Ste. Marie Tribe of Chippewa 
Indians, 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. ACCEPTANCE OF ALTERNATIVE LANDS AND EXTINGUISHMENT OF 
                    CLAIMS.

  (a) 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) Secretary.--The term ``Secretary'' means the Secretary of 
        the Interior.
          (4) Settlement of land claim.--The term ``Settlement of Land 
        Claim'' means the agreement between the Tribe and the Governor 
        of the State of Michigan executed on December 30, 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 
        14, 2007.
          (5) Tribe.--The term ``Tribe'' means the Sault Ste. Marie 
        Tribe of Chippewa Indians, a federally recognized Indian tribe.
  (b) Land Into Trust; Part of Reservation.--
          (1) Land into trust.--The Secretary shall take the 
        alternative lands into trust for the benefit of the Tribe 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 Tribe's reservation immediately upon attaining 
        trust status.
  (c) Gaming.--The alternative lands shall be taken into trust as 
provided in this section as part of the settlement and extinguishment 
of the Tribe'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(b)(1)(B)(i)).
  (d) Extinguishment of Claims.--In consideration for the benefits to 
the Tribe under this Act, any and all claims by the Tribe 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 Tribe 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 extinguished upon 
completion of the following:
          (1) The Secretary having taken the alternative lands into 
        trust for the benefit of the Tribe under subsection (b).
          (2) Congressional acceptance of the extinguishment of any and 
        all such claims to the Charlotte Beach lands by the Bay Mills 
        Indian Community.
  (e) Effectuation and Ratification of Agreement.--
          (1) Ratification.--The United States approves and ratifies 
        the Settlement of Land Claim.
          (2) 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 Indian tribe and 
        State.
          (3) Enforcement.--The Settlement of Land Claim shall be 
        enforceable by either the Tribe 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. 4115 is to provide for and approve the 
settlement of certain land claims of the Sault Ste. Marie Tribe 
of Chippewa Indians.

                          BACKGROUND AND NEED

    The Sault Ste. Marie Tribe of Chippewa Indians is a 
federally recognized Indian tribe, which adopted a constitution 
and form of government pursuant to the Indian Reorganization 
Act of 1934. During the second half of the 20th century, the 
Tribe worked to be federally recognized as a distinct Indian 
community which at the time was known as the Sugar Island 
Indians. In the mid-1960's the Tribe changed their name to the 
Original Band of Chippewa Indians and their Heirs. Upon being 
granted federal recognition in 1972, the Tribe became known as 
the Sault Ste. Marie Tribe of Chippewa Indians. Currently, the 
Tribe's membership stands at approximately 29,000 tribal 
members.
    The present-day Tribe'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 Tribe's 
ancestors signed a peace treaty with the United States in 1795 
to end fighting on the U.S. western frontier.
    By 1836, many Chippewa bands had formed personal 
relationships with 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 Tribe 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 Tribe. These lands were eventually 
illegally sold for unpaid taxes, and 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.
    In 1996 the Bay Mills Indian Community filed suit 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 that the suit did not include 
other parties holding a similar claim, meaning the Sault Ste. 
Marie Tribe. This decision was affirmed on appeal; however, the 
court ruled that the Sault Ste. Marie Tribe of Chippewa Indians 
and the Bay Mills Indian Community 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. In 
2002, the Sault Ste. Marie Tribe entered into negotiations to 
settle their part of the land claim with the State of Michigan.
    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 Sault Ste. Marie Tribe. Governor 
John Engler signed a settlement agreement on behalf of the 
state on December 20, 2002. Governor Jennifer Granholm signed 
an addendum to that settlement agreement on November 14, 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 signed between the Sault Ste. 
Marie Tribe and the Governor of Michigan would:
          --Relinquish the Tribe's claim to the lands in 
        Charlotte Beach in return for certain land to be taken 
        into trust in one of three areas including Monroe 
        County, within the City of Romulus, or within the City 
        of Flint, Michigan;
          --Allow for gaming to be conducted on the lands taken 
        into trust;
          --Provide a formula through which a percentage of net 
        win revenue of electronic games would go to the State;
          --Ratify a limitation of six as the total number of 
        casinos the Tribe could operate in Michigan.

                            COMMITTEE ACTION

    H.R. 4115 was introduced by Rep. John Dingell (D-MI) for 
himself and Rep. Bart Stupak (D-MI) on November 8, 2007, and 
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 Nick Rahall II (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 Sault Ste. Marie Tribe 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 Tribe, provided all 
claims have also been extinguished for the Bay Mills Indian 
Community regarding the same lands in Charlotte Beach. Chairman 
Rahall's en bloc amendment was agreed to by voice vote.
    Rep. Heller (R-NV) offered an amendment to the bill which 
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 5 yeas and 21 nays, as follows:


    Rep. Dean 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 Sault Ste. Marie Tribe and the surrounding 
communities. It would further require the Governor to 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 6 yeas and 20 nays, as 
follows: 


    The Committee on Natural Resources then ordered H.R. 4115 
favorably reported to the House of Representatives, as amended, 
by a rollcall vote of 22 yeas and 5 nays, as follows: 


                      SECTION-BY-SECTION ANALYSIS

Section 1. Acceptance of alternative lands and extinguishment of claims

    Section 1(a) provides the definitions of terms used in the 
bill including ``Alternative Lands'', ``Charlotte Beach 
Lands,'' ``Secretary,'' ``Settlement of Land Claim,'' and 
``Tribe.''
    Section 1(b) provides direction to the Secretary of the 
Interior to take lands into trust for the Tribe 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 Tribe and include lands within Monroe County, 
the City of Romulus, or the city of Flint. Further, this 
section provides for the lands to be considered part of the 
reservation of the Sault Ste. Marie Tribe of Chippewa Indians.
    Section 1(c) 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 
(25U.S.C. 2719).
    Section 1(d) provides that all claims against the United 
States, the State of Michigan, or any other person by the Sault 
Ste. Marie Tribe of Chippewa Indians relating to the Charlotte 
Beach lands, be extinguished concurrent with the Secretary 
taking land into trust for the Tribe.
    Section 1(e) provides for the effectuation and ratification 
of the Settlement of Land Claim signed between the State of 
Michigan and the Sault Ste. Marie Tribe of Chippewa Indians 
dated December 20, 2002 as well as the Addendum signed between 
the parties on November 14, 2007. In addition, this section 
provides that this settlement agreement is not intended to set 
a precedent. Finally, this section 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 and approve the 
settlement of certain land claims of the Sault Ste. Marie Tribe 
of Chippewa Indians.
    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. 4115--A bill to provide for and approve the settlement of certain 
        land claims of the Sault Ste. Marie Tribe of Chippewa Indians

    H.R. 4115 would ratify an agreement between the state of 
Michigan and the Sault St. Marie Tribe of Chippewa Indians 
regarding the tribe's claim to land in northern Michigan, known 
as Charlotte Beach. CBO estimates that implementing this bill 
would have no significant effect on the federal budget.
    H.R. 4115 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 Charlotte Beach and 
that Michigan give the tribe two alternative parcels of land 
near Detroit, Michigan. The legislation would require the 
Secretary of the Interior to take the land into trust for the 
tribe and proclaim that land 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. 4115 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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