[Senate Report 115-363]
[From the U.S. Government Publishing Office]
Calendar No. 650
115th Congress } { Report
SENATE
2d Session } { 115-363
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AN ACT TO REPEAL SECTION 2141 OF THE REVISED STATUTES TO REMOVE THE
PROHIBITION ON CERTAIN ALCOHOL MANUFACTURING ON INDIAN LANDS
_______
November 14, 2018.--Ordered to be printed
_______
Mr. Hoeven, from the Committee on Indian Affairs, submitted the
following
R E P O R T
[To accompany H.R. 5317]
[Including cost estimate of the Congressional Budget Office]
The Committee on Indian Affairs, to which was referred the
bill (H.R. 5317) to repeal section 2141 of the Revised Statutes
to remove the prohibition on certain alcohol manufacturing on
Indian lands, having considered the same, reports favorably
thereon without amendment and recommends the bill do pass.
PURPOSE
The purpose of H.R. 5317 is to repeal section 2141 of the
Revised Statutes to remove the prohibition on certain alcohol
manufacturing on Indian lands.
BACKGROUND AND NEED FOR LEGISLATION
H.R. 5317, repeals an 1834 federal law prohibiting the
establishment and operation of alcohol distilleries in Indian
Country.\1\ The 1834 law was one of the Indian Trade and
Intercourse Acts enacted in the 18th and 19th centuries. The
purpose of these laws were to regulate non-Indian interaction
with individual Indians and Indian tribes on tribal lands.
While the operation of the Indian Trade and Intercourse Acts
have been repealed or superseded by subsequent laws, several of
them--including 25 U.S.C. Sec. 251--remain in effect today.
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\1\25 U.S.C. Sec. 251.
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The Indian Trade and Intercourse Act, passed in 1834,
requires the federal government to impose restrictions on the
sale, exchange, or barter of spirituous liquors to Indians in
Indian country.\2\ The Act provides that if any person
constructs, or continues, a distillery for the manufacturing of
ardent spirits in Indian country, the penalty shall be $1,000,
and the Superintendent of Indian Affairs shall destroy the
distillery.\3\
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\2\See An Act to Regulate Trade and Intercourse with Indian Tribes
and to Preserve Peace on the Frontier, ch. 161, Sec. 21, 4 Stat. 732
(1834).
\3\Id.
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Most of the 1834 law remained in effect until 1953, when
Congress passed An Act to Eliminate Certain Discriminatory
Legislation against Indians in the United States.\4\ Under the
1953 law, the production and distribution of liquor is
permitted in Indian Country, subject to the laws of the
applicable State and Tribal ordinances.
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\4\See An Act to Eliminate Certain Discriminatory Legislation
against Indians in the United States, Pub. L. No. 83-277, 67 Stat. 586
(1953).
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Because the 1834 law remains in effect, it is uncertain
whether the Federal Government will take enforcement action in
Indian Country. This uncertainty has stymied investment in
Tribal businesses. Preventing a Tribe from lawfully
constructing and operating a distillery on its reservation does
not comport with modern-day policies of promoting self-
determination and economic development in Indian Country.
The bill is supported by the Confederated Tribes of the
Chehalis Reservation (Tribe) which plans to construct and
operate a distillery on Tribal land. According to the Tribe,
the project--part of a larger brewery, distillery, and
educational project--will be wholly tribally-owned and
operated, with net profits going to Tribal governmental
operations.
SUMMARY
The bill, H.R. 5317, repeals Section 2141 of 25 U.S.C. 251.
LEGISLATIVE HISTORY
The bill, H.R. 5317, was introduced by Representative Jamie
Herrera Beutler on March 15, 2018. The House Natural Resources
Committee held a hearing on H.R. 5317 on April 26, 2018. Then-
Acting Deputy Bureau of Indian Affairs Director Darryl LaCounte
from the Department of the Interior, and Chairman Harry
Pickernell Sr. of the Confederated Tribes of the Chehalis
Reservation provided testimony in support of the bill.
H.R. 5317 was reported favorably by the House Committee on
Natural Resources on May 24, 2018. Prior to reaching the House
floor, Section 2 was incorporated into the text to clarify that
the repeal has no effect on State or Federal taxation, and does
not enlarge, diminish, or otherwise affect a State's ability to
regulate the importation and sale of alcoholic beverages,
including State authority over the manufacture, distribution,
transportation, or sale of intoxicating liquors.
On September 12, 2018, H.R. 5317, passed the House of
Representatives favorably, with an amendment, and the bill was
referred to the Senate Committee on Indian Affairs. On October
3, 2018, The Committee on Indian Affairs reported H.R. 5317
favorably without amendment.
Senator Cantwell, along with Senators Murray and Moran,
introduced an identical bill, S. 3060, on June 13, 2018. On
July 18, 2018, the Committee held a legislative hearing on the
bill. No further action was taken on S. 3060.
SECTION-BY-SECTION ANALYSIS (AS AMENDED)
Section 1. Repeal of prohibition on certain alcohol manufacturing on
Indian lands
Section 1 provides for a full repeal of the prohibition on
certain alcohol manufacturing on Indian lands. As such, Section
1 repeals Section 2141 of the Revised Statutes (i.e. 25 U.S.C.
251).
Section 2. No effect on taxation or state authority to regulate alcohol
within State borders
Section 2 (a) makes clear that the bill does not have any
impact on State and Federal taxation authority.
Section 2 (b) makes clear that the bill does not impact the
State's authority to regulate alcohol sales within the State's
borders.
COST AND BUDGETARY CONSIDERATIONS
The following cost estimate, as provided by the
Congressional Budget Office, October 12, 2018, was prepared for
H.R. 5317:
U.S. Congress,
Congressional Budget Office,
Washington, DC, October 12, 2018.
Hon. John Hoeven,
Chairman, Committee on Indian Affairs,
U.S. Senate, Washington, DC.
Dear Mr. Chairman: The Congressional Budget Office has
prepared the enclosed cost estimate for H.R. 5317, an act to
repeal section 2141 of the Revised Statutes to remove the
prohibition on certain alcohol manufacturing on Indian lands.
H.R. 5317 would repeal a law enacted in 1834 that prohibits
the establishment of a distillery on Indian lands. Using
information from the Bureau of Indian Affairs, CBO expects
there would be minimal administrative costs associated with
implementing the act.
Enacting H.R. 5317 would not affect direct spending or
revenues; therefore, pay-as-you-go procedures do not apply. CBO
estimates that enacting H.R. 5317 would not increase net direct
spending or on-budget deficits in any of the four consecutive
10-year periods beginning in 2029.
H.R. 5317 contains no intergovernmental or private-sector
mandates as defined in the Unfunded Mandates Reform Act.
On May 22, 2018, CBO transmitted an estimate of H.R. 5317,
a bill to repeal section 2141 of the Revised Statutes to remove
the prohibition on certain alcohol manufacturing on Indian
lands, as ordered reported by the House Committee on Natural
Resources on May 8, 2018. The two versions of H.R. 5317 are
similar and CBO's estimates of their budgetary effects are the
same.
If you wish further details on this estimate, we will be
pleased to provide them. The CBO staff contact is Robert Reese.
Sincerely,
Keith Hall,
Director.
Enclosure.
REGULATORY AND PAPERWORK IMPACT STATEMENT
Paragraph 11(b) of rule XXVI of the Standing Rules of the
Senate requires each report accompanying a bill to evaluate the
regulatory and paperwork impact that would be incurred in
carrying out the bill. The Committee believes that H.R. 5317
will have minimal impact on regulatory or paperwork
requirements.
EXECUTIVE COMMUNICATIONS
The Committee has received no communications from the
Executive Branch regarding H.R. 5317.
CHANGES IN EXISTING LAW
In accordance with Committee Rules, subsection 12 of rule
XXVI of the Standing Rules of the Senate is waived.
[all]