[Senate Report 117-11]
[From the U.S. Government Publishing Office]


                                                      Calendar No. 39
117th Congress     }                                    {      Report
                                 SENATE
 1st Session       }                                    {      117-11

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



 
             TO REPEAL THE KLAMATH TRIBE JUDGMENT FUND ACT

                                _______
                                

                 April 14, 2021.--Ordered to be printed

                                _______
                                

           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.
---------------------------------------------------------------------------
    \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.).
---------------------------------------------------------------------------

                               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\
---------------------------------------------------------------------------
    \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.).
---------------------------------------------------------------------------
    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\
---------------------------------------------------------------------------
    \3\22 Fed. Reg. 9303 (November 21, 1957).
    \4\Id. supra, note 2 (codified at 25 U.S.C. Sec.  564e(c)).
---------------------------------------------------------------------------
    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\
---------------------------------------------------------------------------
    \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).
---------------------------------------------------------------------------
    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.
---------------------------------------------------------------------------
    \8\Id. supra, n.1.
---------------------------------------------------------------------------
    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.
---------------------------------------------------------------------------
    \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).
---------------------------------------------------------------------------
    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\
---------------------------------------------------------------------------
    \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.).
---------------------------------------------------------------------------
    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.
---------------------------------------------------------------------------
    \12\The Klamath Indian Tribe Restoration Act, Pub. L. No. 99-398, 
100 Stat. 849 (1986).
---------------------------------------------------------------------------

                          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\
---------------------------------------------------------------------------
    \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.).
---------------------------------------------------------------------------

                          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\
---------------------------------------------------------------------------
    \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.
---------------------------------------------------------------------------
    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.

                                  [all]