[Senate Report 118-159]
[From the U.S. Government Publishing Office]


                                                      Calendar No. 342
118th Congress     }                                     {      Report
                                 SENATE
 2d Session        }                                     {     118-159

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



 
UNLOCKING NATIVE LANDS AND OPPORTUNITIES FOR COMMERCE AND KEY ECONOMIC 
                        DEVELOPMENTS ACT OF 2023

                                _______
                                

                 March 12, 2024.--Ordered to be printed

                                _______
                                

           Mr. Schatz, from the Committee on Indian Affairs, 
                        submitted the following

                              R E P O R T

                         [To accompany S. 1322]

      [Including cost estimate of the Congressional Budget Office]

    The Committee on Indian Affairs, to which was referred the 
bill, (S. 1322), to amend the Act of August 9, 1955, to modify 
the authorized purposes and term period of tribal leases, and 
for other purposes, having considered the same, reports 
favorably thereon with an amendment in the nature of a 
substitute, and recommends that the bill, as amended, do pass.

                                PURPOSE

    The purpose of S. 1322 is to amend the Long-Term Leasing 
Act to authorize all federally recognized Tribes to issue 
leases of up to 99 years, and to affirm Tribal authority to 
grant rights-of-way over and across Tribal land pursuant to 
Tribal regulations approved by the Secretary of the Interior.

                               BACKGROUND

    Tribal homelands and natural resources are essential to 
developing and supporting thriving Tribal economies and 
communities. However, outdated leasing and right-of-way 
requirements mandating Bureau of Indian Affairs (BIA) approval 
often delays or prevents Tribes from achieving the full 
economic potential of their lands and impacts effective use of 
federal funding for infrastructure and other critical community 
development.\1\
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    \1\For example, the Southern Ute Indian Tribe previously testified 
that review of some of its energy-related rights-of-way took as long as 
8 years. See Hearing on the Indian Tribal Energy and Self-Determination 
Act Amendments (S. 2132), 113th Cong. (April 30, 2014) (statement of 
the Honorable James M. Olguin, Acting Chairman, Southern Ute Indian 
Tribal Council on behalf of the Southern Ute Indian Tribe).
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Long-Term Leasing Authority

    The Long-Term Leasing Act authorizes federally recognized 
Indian Tribes to enter into surface leases of restricted lands 
with third parties, subject to Secretarial approval.\2\ Unless 
otherwise designated, leases entered into pursuant to this 
statute are limited to a term of 25 years, with the option to 
renew for one additional term of up to 25 years.\3\ Tribes may 
only obtain extended leasing authority through individual acts 
of Congress, and 60 Tribes have successfully secured such 
authority to date.\4\
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    \2\25 U.S.C. 415.
    \3\Id.
    \4\See 25 U.S.C. 415(a)-(e) (codifying each Tribal exception).
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Authority to Grant Rights-of-Way

    In 2012, the Helping Expedite and Advance Responsible 
Tribal Homeownership (HEARTH) Act removed administrative 
barriers to Tribal economic development by recognizing and 
affirming Tribal authority to issue leases without Secretarial 
approval pursuant to approved Tribal leasing regulations.\5\ 
The HEARTH Act was a significant step forward for Tribal 
economic development, but implementation of its provisions 
revealed a gap in the framework regarding rights-of-way. 
Specifically, while the statute clearly affirms Tribal 
authority to issue leases for business, agricultural, 
residential, energy, and other development, the statute does 
not expressly affirm Tribal authority to issue associated 
rights-of-way for the infrastructure needed to support such 
development. This gap places Tribes in the untenable position 
of being able to issue expeditious leases for their development 
projects, but having to wait years for federal approval of 
associated rights-of-way.
---------------------------------------------------------------------------
    \5\Pub. L. 112-151.
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                          NEED FOR LEGISLATION

    In the contemporary leasing market, prospective lessees and 
financial institutions require the security of longer term 
leases, as well as a timely process for obtaining leases and 
associated rights-of-way for development projects. As such, 
when asked how Congress can support Tribal economic development 
in these areas, the Department of the Interior testified in 
favor of amending the Long-Term Leasing Act to extend 99-year 
leasing authority to all federally recognized Tribes,\6\ and to 
affirm Tribal authority to grant rights-of-way without 
Secretarial approval pursuant to Tribal leasing regulations.\7\
---------------------------------------------------------------------------
    \6\Legislative Hearing to Receive Testimony on S. 1397, S. 3168, S. 
3308, S. 3773, & S. 3789, (Mar. 23, 2022) (statement of Bryan Newland, 
Assistant Secretary-Indian Affairs, U.S. Department of the Interior).
    \7\Oversight Hearing: Buy Native American: Federal Support for 
Native Businesses Capacity Building and Success, (Mar. 16, 2022) 
(statement of Wizipan Garriott, Principal Deputy Assistant Secretary 
for Indian Affairs, U.S. Department of the Interior).
---------------------------------------------------------------------------

                SUMMARY OF THE BILL AS ORDERED REPORTED

    S. 1322 amends the Long-Term Leasing Act to authorize 
Indian owners of restricted Indian lands to issue leases of up 
to 99 years, with the exception of lands leased for grazing 
purposes, which may not be leased for more than 10 years. S. 
1322 further authorizes Indian Tribes to grant rights-of-way 
without secretarial approval pursuant to approved Tribal 
regulations, and it makes a technical correction to clarify 
that ``Secretary'' refers to the Secretary of the Interior in 
section 415a of the Long-Term Leasing Act.

       SECTION-BY-SECTION ANALYSIS OF S. 1322 AS ORDERED REPORTED

Section 1--Short title

    This section sets forth the short title as the ``Unlocking 
Native Lands and Opportunities for Commerce and Key Economic 
Developments Act of 2023.''

Section 2--Modification of Tribal leases and rights-of-way across 
        indian lands

    Section 2(a) authorizes Indian owners of restricted Indian 
lands to issue leases of up to 99 years, with the exception of 
lands leased for grazing purposes, which may not be leased for 
more than 10 years.
    Section 2(b) makes a technical correction to clarify that 
``Secretary'' refers to the Secretary of the Interior in 
section 415a of the Long-Term Leasing Act.
    Section 2(c) affirms Tribal authority to grant rights-of-
way without Secretarial approval pursuant to approved Tribal 
regulations, establishes a process and timeline for Secretarial 
review and approval of such Tribal regulations, requires Tribes 
granting rights-of-way to submit copies of such rights-of-way 
to the Secretary, clarifies that the United States is not 
liable for economic losses sustained as a result of the 
Tribally-granted right-or-way, provides for Secretarial 
enforcement of Tribally-granted rights-of-way in specified 
circumstances, clarifies that related terms of compensation are 
to be determined by Tribal regulations or negotiations, and 
preserves the applicability of other regulations and Tribal 
sovereign immunity.

                          LEGISLATIVE HISTORY

    On April 26, 2023, Senators Schatz (D-HI) and Murkowski (R-
AK) introduced S. 1322, Unlocking Native Lands and 
Opportunities for Commerce and Key Economic Developments 
(UNLOCKED) Act. On the same day, the Senate referred the bill 
to the Committee on Indian Affairs. The Committee held a 
legislative hearing on the bill on May 3, 2023 and met at a 
duly convened business meeting to consider the bill on July 19, 
2023. Senators Schatz and Murkowski untimely filed one 
amendment in the nature of a substitute. This amendment added a 
more detailed process for Secretarial review of proposed Tribal 
right-of-way regulations and clarified the Secretary's role in 
the process. With the concurrence of the Vice Chair, the 
Chairman waived Committee Rule 5(c) and the Committee 
considered the amendment, which was adopted. S. 1322, as 
amended, was ordered reported favorably by voice vote.

    [GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT]


    S. 1322 would allow Indian tribes to lease any restricted 
tribal land (tribal or individually owned) to third parties for 
up to 99 years with approval of the Department of the Interior 
(DOI). Under current law, the tribes cannot lease their trust 
land for more than 25 years, with an option to renew the lease 
once for another 25 years. The bill also would allow tribes to 
grant a right-of-way on tribal land for any purpose without the 
approval of DOI. Any proceeds from leases would accrue to the 
tribes.
    Using information from DOI, CBO estimates that the cost to 
implement S. 1322 would be insignificant; any spending would be 
subject to the availability of appropriated funds.
    The CBO staff contact for this estimate is Julia Aman. The 
estimate was reviewed by H. Samuel Papenfuss, Deputy Director 
of Budget Analysis.
                                         Phillip L. Swagel,
                             Director, Congressional Budget Office.

               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. 1322 will 
have minimal impact on regulatory or paperwork requirements.

                        EXECUTIVE COMMUNICATIONS

    The Committee has received no communications from the 
Executive Branch regarding S. 1322.

                        CHANGES IN EXISTING LAW

    On February 9, 2023, the Committee unanimously approved a 
motion to waive subsection 12 of rule XXVI of the Standing 
Rules of the Senate. 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]