[Senate Report 117-11]
[From the U.S. Government Publishing Office]
Calendar No. 39
117th Congress } { Report
SENATE
1st Session } { 117-11
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TO REPEAL THE KLAMATH TRIBE JUDGMENT FUND ACT
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April 14, 2021.--Ordered to be printed
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Mr. Schatz, from the Committee on Indian Affairs,
submitted the following
R E P O R T
[To accompany S. 314]
[Including cost estimate of the Congressional Budget Office]
The Committee on Indian Affairs, to which was referred the
bill (S. 314) to repeal the Klamath Tribe Judgment Fund Act,
having considered the same, reports favorably thereon without
amendment and recommends the bill do pass.
PURPOSE
The bill, S. 314, repeals Public Law 89-224, commonly
referred to as the Klamath Tribe Judgment Fund Act.\1\ The bill
is intended to promote the Klamath Tribes' ability to exercise
its sovereign authority and discretion over tribal funds, and
would provide greater flexibility for the Klamath Tribes to
access and use monies they were awarded following successful
litigation against the United States.
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\1\An Act to provide for the disposition of judgment funds of the
Klamath and Modoc Tribes and Yahooskin Band of Snake Indians, and for
other purposes, Pub. L. No. 89-224, 79 Stat. 897, 897-898 (1965)
(codified at 25 U.S.C. Sec. 565 et seq.).
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BACKGROUND
On August 13, 1954, Congress passed Public Law 83-587,
otherwise known as the Klamath Termination Act (1954 Act). The
1954 Act established procedures for the sale of a portion of
the reservation land belonging to members of the Klamath and
Modoc Tribes and Yahooskin Band of Snake Indians (collectively,
``Klamath Tribes''), and the termination of the Federal
government's trust relationship with the Klamath Tribes.\2\
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\2\An Act to provide for the termination of Federal supervision
over the property of the Klamath Tribe of Indians located in the State
of Oregon and the individual members thereof, and for other purposes,
Pub. L. No. 83 587, 68 Stat. 718 (1954) (codified at 25 U.S.C. Sec.
564 et seq.).
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As required by the 1954 Act, six months after passage, the
Klamath Tribes submitted to the Secretary of the Interior a
final roll consisting of 2,133 members.\3\ In addition to
transferring rights in tribal property to the final enrollees,
including their heirs and legatees, the 1954 Act specified that
nothing would ``prevent [members] from sharing in the proceeds
of tribal claims against the United States.''\4\
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\3\22 Fed. Reg. 9303 (November 21, 1957).
\4\Id. supra, note 2 (codified at 25 U.S.C. Sec. 564e(c)).
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On August 13, 1946, Congress passed the Indian Claims
Commission Act, creating a special forum, the Indian Claims
Commission, in which Indian tribes could seek damages against
the Federal government for, among other things, the cessation
of land for inadequate compensation.\5\ Prior to the passage of
the 1954 Act, the Klamath Tribes filed a claim with the Indian
Claims Commission, the basis of which was unconscionable
consideration paid for lands ceded by the treaty of October 4,
1864.\6\ Otherwise known as ``Docket 100,'' this claim was
settled on January 31, 1964 for $2.5 million.\7\
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\5\An Act to create an Indian Claims Commission, to provide for the
powers, duties, and functions thereof, and for other purposes, Pub. L.
No. 79-726, 60 Stat. 1049 (1946). See generally An Act to authorize
appropriations for the Indian Claims Commission for fiscal year 1977,
and for other purposes, Pub. L. No. 94-465, 90 Stat. 1990 (1976)
(providing for the eventual dissolution of the Indian Claims
Commission).
\6\The Treaty of October 14, 1864, obligated the United States to
pay less than $300,000 for over one million acres of aboriginal land in
southern Oregon and northern California.
\7\Klamath and Modoc Tribes, et al. v. The United States of
America, 13 Ind. Cl. Comm. 41, Docket No. 100 (1964).
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On October 1, 1965, Congress passed Public Law 89-224, the
Klamath Tribe Judgment Fund Act, which directed the
distribution of the Docket 100 settlement along with ``all
other funds heretofore or hereafter deposited in the United
States Treasury'' to the credit of Klamath Tribes.\8\ In so
doing, Congress required the Secretary of the Interior to make
per-capita distributions of the funds resulting from Docket 100
to all living individuals listed on the August 13, 1954 final
roll. The share of any deceased enrollee would be paid to his
or her heirs and legatees pursuant to the 1954 Act.
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\8\Id. supra, n.1.
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In the years following the settlement of Docket 100, the
Klamath Tribes were awarded three more judgments against the
United States from the Indian Claims Commission for various
claims including the mismanagement of tribal assets and
unconscionable consideration paid for Reservation land.\9\ Like
Docket 100, moneys from these judgments were distributed
pursuant to the Klamath Tribe Judgment Fund Act.
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\9\Klamath and Modoc Tribes and Yahooskin Band of Snake Indians v.
The United States of America, 21 Ind. Cl. Comm. 343, Docket No. 100-A
(1969) (The Klamath Tribes were awarded $4,162,992.80 for
unconscionable consideration paid pursuant to a 1901 land-sale
agreement); Klamath and Modoc Tribes and Yahooskin Band of Snake
Indians v. The United States of America, 37 Ind. Cl. Comm. 2, Docket
No. 100-C (1975) (The Klamath Tribes were awarded $785,000 for claims
involving grazing and rights-of-way); Klamath and Modoc Tribes and
Yahooskin Band of Snake Indians v. The United States of America, 39
Ind. Cl. Comm. 262, Docket No. 100-B 1 (1977) (The Klamath Tribes were
awarded $18,000,000 for mismanagement of tribal funds and properties,
primarily timber and ranch lands).
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Under the Klamath Tribe Judgment Fund Act, distributions
would only occur after the United States deducted litigation
expenses and estimated costs of distribution.\10\ On April 15,
1958, the Klamath Tribal Executive Committee passed a
resolution authorizing the use of a $350,000 reserve fund for
the reimbursement of attorney expenses for the presentation of
tribal claims. Any unused portion would remain in the U.S.
Treasury to the credit of the Klamath Tribes.\11\
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\10\Id. supra n.1.
\11\Id. See also Disposition of Klamath and Modoc Judgment Funds:
Hearing before the Subcomm. on Indian Affairs of the H. Comm. on
Interior and Insular Affairs, 89th Congress (May 13, 1965). See also
H.R. Rep. No. 89-889, at 1 (1965) (Comm. Rep.).
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On August 27, 1986, the Klamath Tribes' Federal trust
relationship with the United States was restored with the
passage of the Klamath Indian Tribe Restoration Act.\12\
Nevertheless, the Klamath Indian Tribe Restoration Act did not
restore the Klamath Tribes' former reservation lands, and
efforts to regain their tribal land base continue to this day.
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\12\The Klamath Indian Tribe Restoration Act, Pub. L. No. 99-398,
100 Stat. 849 (1986).
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NEED FOR LEGISLATION
The Klamath Tribe Judgment Fund Act prescribes the method
for distribution and use of any funds awarded to the Klamath
Tribes from the U.S. Treasury (Klamath Treasury funds). Thus,
any future successful monetary claims by the Klamath Tribes
against the United States is subject to the Act's distribution
terms, making compliance cumbersome and expensive. This bill
repeals the Klamath Tribe Judgment Fund Act, enabling the
Klamath Tribes to use the Klamath Treasury funds without the
prescriptive method required by the Klamath Tribe Judgment Act,
and eliminates the Secretary of the Interior's discretion to
permanently keep the Klamath Treasury funds in the U.S.
Treasury if the remaining balance is deemed ``insufficient to
justify a further distribution.'' With the repeal of the
Klamath Tribe Judgment Fund Act, future distribution of funds
would be made pursuant to the Indian Tribal Distribution of
Judgment Funds Use and Distribution Act.\13\
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\13\An Act to provide for the use or distribution of funds
appropriated in satisfaction of certain judgments of the Indian Claims
Commission and the Court Of Claims, and for other purposes, Pub. L. 93-
134, Oct. 19, 1973, 87 Stat. 466 (codified as amended at 25 U.S.C. 1401
et seq.).
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LEGISLATIVE HISTORY
Senators Merkley and Wyden introduced S. 314, the Klamath
Tribe Judgment Fund Repeal Act, on February 12, 2021. The
Senate referred the bill to the Committee on the same day. The
bill, S. 314, is identical to the version favorably reported by
the Committee and passed by the Senate in the 116th Congress.
On March 10, 2021, at a duly called business meeting, the
Committee considered and reported S. 314 favorably without
amendment.
116th Congress. On January 8, 2019, Senators Merkley and
Wyden introduced S. 46, the Klamath Tribe Judgment Fund Repeal
Act, and the bill was referred to the Committee. The bill, S.
46, is identical to the version favorably reported by the
Committee, as amended, in the 115th Congress. On January 29,
the Committee reported the bill without amendment and the bill
passed the Senate without amendment by voice vote on June 27,
2019. On June 28, 2019, the bill was received in the House and
referred to the Committee on Natural Resources. The bill was
referred to the Subcommittee for Indigenous Peoples of the
United States on July 3, 2019. A legislative hearing was held
on October 16, 2019 by the Subcommittee. No House companion
bill was introduced.
115th Congress. Senators Merkley and Wyden introduced S.
1223, the Klamath Tribe Judgment Fund Repeal Act, on May 24,
2017. The Senate referred the bill to the Committee on the same
day. The Committee held a legislative hearing on the bill on
July 12, 2017. At that time, the Department of the Interior
took no position on the bill, noting its wish to better
understand the impact that a repeal of the Klamath Tribe
Judgment Fund Act would have upon its trust responsibility to
the Klamath Tribes.\14\ The Committee also received testimony
from a Senior Attorney from the Native American Rights Fund
(NARF), Mr. Donald R. Wharton, on behalf of the Klamath
Tribes.\15\
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\14\Legislative Hearing to Receive Testimony on S. 943, S. 1223,
and S. 1285 Before the Senate Comm. on Indian Affairs, 115th Cong. 115-
76 (2017) (statement of Tony Dearman, Director, Bureau of Indian
Education, U.S. Department of the Interior).
\15\Id.
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At a duly called business meeting on October 25, 2017, one
amendment to the Klamath Tribe Judgment Fund Repeal Act was
timely filed and considered by the Committee. The amendment
added Section 3 to the bill, clarifying that the Secretary of
the Interior shall disburse the full balance of any remaining
or reserve funds held in the U.S. Treasury to the Klamath
Tribes as soon as practicable, after the date of enactment. The
text of the amendment was based on the Department of the
Interior's technical drafting assistance. The Department of the
Interior subsequently informed the Committee of its support for
the bill, as amended.
S. 1223 with an amendment passed the Senate by unanimous
consent on March 22, 2018. On March 26, 2018, the bill was
received in the House and referred to the Committee on Natural
Resources. On March 27, 2018, the bill was referred to the
Subcommittee on Indian, Insular and Alaska Native Affairs. No
further action was taken.
SECTION-BY-SECTION ANALYSIS
Section 1. Short title
Section 1 sets forth the short title of this bill as the
``Klamath Tribe Judgment Fund Repeal Act.''
Section 2. Repeal
Section 2 contains a full repeal of Public Law 89-224, the
Klamath Tribe Judgment Fund Act.
Section 3. Disbursement of remaining funds
Section 3 requires the Secretary of the Interior, as soon
as practicable following enactment of this Act, to disburse the
balance of any funds in trust accounts for remaining legal fees
and administrative expenses, as well as funds in per-capita
trust accounts as identified by the Secretary of the Interior,
to the Klamath Tribes.
COST AND BUDGETARY CONSIDERATIONS
The following cost estimate, as provided by the
Congressional Budget Office, dated March 19, 2021, was prepared
for S. 314:
March 19, 2021.
Hon. Brian Schatz,
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. 314, the Klamath
Tribe Judgement Fund Repeal Act.
If you wish further details on this estimate, we will be
pleased to provide them. The CBO staff contact is Jon Sperl.
Sincerely,
Phillip L. Swagel,
Director.
Enclosure.
[GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT]
S. 314 would repeal the Klamath Tribe Judgment Fund Act,
which authorizes the Department of the Interior (DOI) to
establish and maintain a fund to make payments to Klamath Tribe
members to satisfy any judgments obtained by the tribe. The
bill also would require any amounts remaining in the fund upon
its closure to be disbursed to the Klamath Tribe.
Payments to certain tribal trust funds that are held and
managed in a fiduciary capacity by the federal government on
behalf of Indian tribes are treated as payments to a nonfederal
entity. Thus, the balances remaining in the Klamath Tribe
Judgment Fund were previously recorded as federal budget
authority and outlays at the time those funds were deposited
into the fund. Accordingly, any subsequent disbursement of
those funds would have no effect on the federal budget.
According to information provided by DOI, about $660,000
remains in the fund. That money is slated to be paid to almost
200 members of the Klamath Tribe or to their next of kin, none
of whom DOI has been able to locate. Assuming that S. 314 is
enacted early in calendar year 2021, CBO estimates that those
funds would be disbursed directly to the government of the
Klamath Tribe during fiscal year 2021.
The CBO staff contact for this estimate is Jon Sperl. The
estimate was reviewed by H. Samuel Papenfuss, Deputy Director
of Budget Analysis.
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 S. 314 will
have minimal impact on regulatory or paperwork requirements.
EXECUTIVE COMMUNICATIONS
Except as otherwise noted, the Committee has received no
communications from the Executive Branch regarding S. 314.
CHANGES IN EXISTING LAW
In accordance with Committee Rules, subsection 12 of rule
XXVI of the Standing Rules of the Senate is waived. In the
opinion of the Committee, it is necessary to dispense with
subsection 12 of rule XXVI of the Standing Rules of the Senate
to expedite the business of the Senate.
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