[House Report 116-651]
[From the U.S. Government Publishing Office]


116th Congress    }                                  {   Rept. 116-651
                        HOUSE OF REPRESENTATIVES
 2d Session       }                                  {         Part 1

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

 
TO DEEM AN URBAN INDIAN ORGANIZATION AND EMPLOYEES THEREOF TO BE A PART 
  OF THE PUBLIC HEALTH SERVICE FOR THE PURPOSES OF CERTAIN CLAIMS FOR 
                PERSONAL INJURY, AND FOR OTHER PURPOSES

                                _______
                                

 December 15, 2020.--Committed to the Committee of the Whole House on 
            the State of the Union and ordered to be printed

                                _______
                                

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

                              R E P O R T

                             together with

                            DISSENTING VIEWS

                        [To accompany H.R. 6535]

      [Including cost estimate of the Congressional Budget Office]

    The Committee on Natural Resources, to whom was referred 
the bill (H.R. 6535) to deem an urban Indian organization and 
employees thereof to be a part of the Public Health Service for 
the purposes of certain claims for personal injury, and for 
other purposes, having considered the same, reports favorably 
thereon without amendment and recommends that the bill do pass.

                          Purpose of the Bill

    The purpose of H.R. 6535 is to deem an urban Indian 
organization and employees thereof to be a part of the Public 
Health Service for the purposes of certain claims for personal 
injury.

                  Background and Need for Legislation

    The Indian Health System, commonly referred to as the I/T/U 
system, is made up of the Indian Health Service (IHS), tribal 
health programs (THPs), and urban Indian organizations (UIOs). 
UIOs play a pivotal role in the system and provide culturally 
competent care for the over seventy percent of American Indians 
and Alaska Natives who live in urban centers.
    The Federal Tort Claims Act\1\ (FTCA) is the federal law 
that allows parties claiming to have been injured by negligent 
actions of employees of the United States to file claims 
against the federal government. The FTCA also provides 
authority for the federal government to defend against such 
claims. In 1988 and again in 1990, Congress extended the 
Federal Tort Claims Act to negligent acts of tribal contractors 
carrying out contracts, grants, or cooperative agreements 
pursuant to the Indian Self-Determination and Education 
Assistance Act.\2\
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    \1\August 2, 1946, ch.646, Title IV, 60 Stat. 812, 28 U.S.C. Part 
VI, Chapter 171 and 28 U.S.C. Sec. 1346.
    \2\Pub. L. 93-638, 25 U.S.C. Sec. 450f (d) and 25 U.S.C. 458Sec.  
aaa-15.
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    Currently, both IHS and THPs receive FTCA malpractice 
coverage for their employees, but UIOs do not. The ability of 
Urban Indian Organizations to provide cost-effective health 
services has been jeopardized by the lack of FTCA coverage 
commonly afforded to other federally funded Indian health 
programs. The skyrocketing cost of malpractice insurance in 
recent years has compromised the scope of services that UIOs 
can provide pursuant to contracts or grants that they receive 
from IHS.
    UIOs must spend millions of dollars in scarce resources on 
insurance coverage when those resources could be better 
utilized to expand services available to urban Indian patients. 
H.R. 6535 creates parity within the I/T/U system by extending 
FTCA coverage to urban Indian organizations, who currently are 
forced to divert resources away from health care in order to 
foot exorbitant liability costs themselves. FTCA coverage would 
also free up millions of dollars for UIOs to provide necessary 
health care services in response to COVID-19, as UIOs are 
uniquely positioned to deliver health care services in COVID-19 
hot spots.
    The Administration supports such a change and included 
language to that effect in its Department of Health and Human 
Services FY 2021 IHS Congressional Budget Justification.\3\
---------------------------------------------------------------------------
    \3\https://www.ihs.gov/sites/budgetformulation/themes/
responsive2017/display_objects/documents/FY_2021_Final_CJ-IHS.pdf.
---------------------------------------------------------------------------

                            Committee Action

    H.R. 6535 was introduced on April17, 2020, by 
Representative Ruben Gallego (D-AZ). The bill was referred to 
the Committee on Natural Resources, and in addition to the 
Committee on Energy and Commerce and the Committee on the 
Judiciary. Within the Natural Resources Committee, the bill was 
referred to the Subcommittee for Indigenous Peoples of the 
United States. On July 22, 2020, the Subcommittee held a 
hearing on the bill. On July 29, 2020, the Natural Resources 
Committee met to consider the bill. The Subcommittee was 
discharged by unanimous consent. No amendments were offered, 
and the bill was adopted and ordered favorably reported to the 
House of Representatives by unanimous consent.

                                Hearings

    For the purposes of section 103(i) of H. Res. 6 of the 
116th Congress--the following hearing was used to develop or 
consider H.R. 6535: hearing by the Subcommittee for Indigenous 
Peoples of the United States held on July 22, 2020.

            Committee Oversight Findings and Recommendations

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

      Compliance With House Rule XIII and Congressional Budget Act

    1. Cost of Legislation and the Congressional Budget Act. 
With respect to the requirements of clause 3(c)(2) and (3) of 
rule XIII of the Rules of the House of Representatives and 
sections 308(a) and 402 of the Congressional Budget Act of 
1974, the Committee has received the following estimate for the 
bill from the Director of the Congressional Budget Office:

                                     U.S. Congress,
                               Congressional Budget Office,
                                 Washington, DC, September 2, 2020.
Hon. Raul M. Grijalva,
Chairman, Committee on Natural Resources,
House of Representatives, Washington, DC.
    Dear Mr. Chairman: The Congressional Budget Office has 
prepared the enclosed cost estimate for H.R. 6535, a bill to 
deem an urban Indian organization and employees thereof to be a 
part of the public health service for the purposes of certain 
claims for personal injury, and for other purposes.
    If you wish further details on this estimate, we will be 
pleased to provide them. The CBO staff contact is Robert 
Stewart.
            Sincerely,
                                         Phillip L. Swagel,
                                                          Director.
    Enclosure.

    
    
    
    	[GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT]
    	
    	
    	
    

    H.R. 6535 would include Urban Indian Health Programs 
(UIHPs) and their employees in the pool of individuals and 
entities that receive liability protection under the Federal 
Tort Claims Act (FTCA). Under the FTCA, the federal government 
pays for court judgments and compromise settlements of lawsuits 
out of the Judgement Fund. The Judgment Fund is a permanent, 
indefinite appropriation that is available to pay monetary 
awards against the United States that are judicially or 
administratively ordered.Under current law, UIHPs are health 
care organizations that are grantees of the Indian Health 
Service (IHS) but are not considered federal entities and 
therefore their employees are not covered under the FTCA.
    For this estimate, CBO used information from the Department 
of Treasury's Bureau of the Fiscal Service about the number and 
level of payments from the Judgement Fund that were used to 
settle claims and litigation on behalf of IHS employees. While 
UIHPs are not part of IHS, they provide similar services, and 
CBO expects they would experience a similar rate of lawsuits 
and settlements.
    According to the Judgement Fund data, over the last five 
years an average of about $19.5 million has been paid out for 
medical malpractice claims against IHS employees, or about 
$2,700 per year per IHS clinical employee. UIHPs employ about 
1,150 clinical workers and CBO estimates that payments from the 
Judgement Fund would total about $3 million per year once fully 
implemented. CBO expects that it would take some time for 
patients to initiate legal action against UIHPs and for the 
legal system to finalize judgements and settlements against the 
UIHPs. Therefore, CBO estimates that the outlays from the 
Judgement Fund would gradually increase until reaching a stable 
level by 2025. In total, CBO estimates that H.R. 6535 would 
increase direct spending from the Judgement Fund by $22 million 
over the 2020-2030 period.
    The Statutory Pay-As-You-Go Act of 2010 establishes budget-
reporting and enforcement procedures for legislation affecting 
direct spending or revenues. The net changes in outlays that 
are subject to those pay-as-you-go procedures are shown in 
Table 1. The costs of the legislation fall within budget 
function 800 (general government).

  TABLE 1.--CBO'S ESTIMATE OF THE STATUTORY PAY-AS-YOU-GO EFFECTS OF H.R. 6535, AS ORDERED REPORTED BY THE HOUSE COMMITTEE ON NATURAL RESOURCES ON JULY
                                                                        29, 2020
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                     By fiscal year, millions of dollars--
                                                      --------------------------------------------------------------------------------------------------
                                                        2020   2021   2022   2023   2024   2025   2026   2027   2028   2029   2030  2020-2025  2020-2030
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                              Increases in Direct Spending
 
Pay-As-You-Go Effect.................................      0      0      0      1      2      3      3      3      3      3      3         6         22
--------------------------------------------------------------------------------------------------------------------------------------------------------
Components may not sum to totals because of rounding.

    The CBO staff contact for this estimate is Robert Stewart. 
The estimate was reviewed by Leo Lex, Deputy Director of Budget 
Analysis.
    2. General Performance Goals and Objectives. As required by 
clause 3(c)(4) of rule XIII, the general performance goals and 
objectives of this bill are to deem an urban Indian 
organization and employees thereof to be a part of the Public 
Health Service for the purposes of certain claims for personal 
injury.

                           Earmark Statement

    This bill does not contain any Congressional earmarks, 
limited tax benefits, or limited tariff benefits as defined 
under clause 9(e), 9(f), and 9(g) of rule XXI of the Rules of 
the House of Representatives.

                 Unfunded Mandates Reform Act Statement

    This bill contains no unfunded mandates.

                           Existing Programs

    This bill does not establish or reauthorize a program of 
the federal government known to be duplicative of another 
program.

                  Applicability to Legislative Branch

    The Committee finds that the legislation does not relate to 
the terms and conditions of employment or access to public 
services or accommodations within the meaning of section 
102(b)(3) of the Congressional Accountability Act.

               Preemption of State, Local, or Tribal Law

    Any preemptive effect of this bill over state, local, or 
tribal law is intended to be consistent with the bill's 
purposes and text and the Supremacy Clause of Article VI of the 
U.S. Constitution.

         Changes in Existing Law Made by the Bill, as Reported

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

                   INDIAN HEALTH CARE IMPROVEMENT ACT



           *       *       *       *       *       *       *
TITLE V--HEALTH SERVICES FOR URBAN INDIANS

           *       *       *       *       *       *       *


SEC. 519. DEEMING AN URBAN INDIAN ORGANIZATION AND EMPLOYEES THEREOF TO 
                    BE A PART OF THE PUBLIC HEALTH SERVICE FOR THE 
                    PURPOSES OF CERTAIN CLAIMS FOR PERSONAL INJURY.

  Section 102(d) of the Indian Self-Determination and Education 
Assistance Act shall apply--
          (1) to an Urban Indian organization to the same 
        extent and in the same manner as such section applies 
        to an Indian tribe, a tribal organization, and an 
        Indian contractor; and
          (2) to the employees of an Urban Indian organization 
        to the same extent and in the same manner as such 
        section applies to employees of an Indian tribe, a 
        tribal organization, or an Indian contractor.

           *       *       *       *       *       *       *


                            DISSENTING VIEWS

    I oppose H.R. 6535 in its current form due to new 
information provided to the Committee by the Indian Health 
Service after the July 29, 2020, markup of the bill. One week 
prior to the markup, the Indian Health Service testified that 
the Department had some concerns with the bill and would like 
to provide technical assistance. Additional questions for the 
record were submitted to the Indian Health Service after the 
hearing but answers have not been received.
    However, the Committee has received some unofficial 
information regarding concerns and accompanying technical 
assistance from the Indian Health Service. The concerns with 
the bill as written include:
           Failure to cover urban Indian organizations' 
        board of directors and officers.As defined by the 
        Indian Health Care Improvement Act (IHCIA), one of the 
        unique elements of urban Indian organizations (UIOs) is 
        that they are non-profit organizations governed by 
        urban-Indian controlled boards of directors under 25 
        U.S.C. 1603(29). The Indian Self-Determination and 
        Education Assistance Act (ISDEAA) provision (25 U.S.C. 
        5321(d)) that would apply under H.R. 6535 references 
        ``employees''. Board members and officers generally are 
        not included in the definition of ``employee''.
           Uncertainty about the date of 
        applicability.That same ISDEAA provision provided 
        prospective Federal Tort Claims Act (FTCA) coverage, 
        i.e., it applied only to claims filed on or after the 
        specified dates, which correspond to the dates of 
        enactment of the related FTCA coverage.
           Lack of clarity on the authority being 
        extended. UIOs receive contracts/grants under the IHCIA 
        and do not operate under the ISDEAA. Therefore, 
        applying an ISDEAA provision to UIOs ``to the same 
        extent and in the same manner'' as it applies to tribes 
        and tribal organizations operating under the ISDEAA 
        could create uncertainty about the scope of the 
        authority being extended to UIOs.
    There is general agreement and support that FTCA 
protections should be extended to urban Indian organizations, 
but the bill language should mirror the technical assistance 
provided by the Indian Health Service. At the July 29, 2020, 
markup of H.R. 6535, the Chairman committed to working with me 
to resolve any outstanding concerns with several pieces of 
legislation. Since that

time, there has been little response to Republican requests to 
engage in meaningful dialogue to resolve unintended 
consequences with H.R. 6535.
                                   Rob Bishop.

                                  
                                  
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