[Senate Report 118-212]
[From the U.S. Government Publishing Office]


                                                      Calendar No. 490
118th Congress      }                                    {      Report
                                 SENATE
 2d Session         }                                    {     118-212

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


 
A BILL TO ACCEPT THE REQUEST TO REVOKE THE CHARTER OF INCORPORATION OF 
   THE LOWER SIOUX INDIAN COMMUNITY IN THE STATE OF MINNESOTA AT THE 
           REQUEST OF THAT COMMUNITY, AND FOR OTHER PURPOSES

                                _______
                                

               September 9, 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. 2868]

      [Including cost estimate of the Congressional Budget Office]

    The Committee on Indian Affairs, to which was referred the 
bill (S. 2868), to accept the request to revoke the charter of 
incorporation of the Lower Sioux Indian Community in the State 
of Minnesota at the request of that Community, and for other 
purposes, having considered the same, reports favorably thereon 
without amendment, and recommends that the bill do pass.

                                PURPOSE

    The purpose of S. 2868 is to revoke the corporate charter 
under Section 17 of the Indian Reorganization Act for the Lower 
Sioux Indian Community in the State of Minnesota at the request 
of the Community.

                          BACKGROUND AND NEED

    Under Section 17 of the Indian Reorganization Act of 1934 
(IRA),\1\ a Tribe may form a federally-chartered corporation to 
carry out commercial activities upon approval by the Secretary 
of the Interior, however, once issued such charter can only be 
revoked by Congress. Congress has acted numerous times to 
revoke Section 17 IRA charters for Tribes.\2\
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    \1\Indian Reorganization Act of 1934, 25 U.S.C. Sec. 5124.
    \2\E.g., Miami Tribe of Oklahoma (P.L. 114-28); the Stockbridge-
Munsee Community of Mohican Indians (P.L. 106-216); the Minnesota 
Chippewa Tribe (P.L. 104-109); and the Prairie Island Indian Community 
(P.L. 104-261).
---------------------------------------------------------------------------
    The Secretary issued a Section 17 IRA charter to the Lower 
Sioux Indian Community in 1937.\3\ The charter requires express 
approval of the Secretary of the Interior for numerous business 
activities, thus limiting the Community's corporate income 
abilities, and further prohibits the sale of land held by the 
corporation. The Community seeks to revoke its corporate 
charter as burdensome and unnecessary to accomplish its 
economic development goals.
---------------------------------------------------------------------------
    \3\U.S. Dep't of the Interior, Office of Indian Affairs, Corporate 
Charter of the Lower Sioux Indian Community in Minnesota (1937), 21-
273.
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                 SUMMARY OF S. 2868 AS ORDERED REPORTED

    This bill would revoke the Lower Sioux Indian Community's 
Indian Reorganization Act Section 17 corporate charter.

       SECTION-BY-SECTION ANALYSIS OF S. 2868 AS ORDERED REPORTED

Section 1--Revocation of charter of incorporation of the Lower Sioux 
        Indian Community

    This section approves the request made to Congress by the 
Lower Sioux Indian Community for revocation of the Tribe's 
charter of incorporation made under Section 17 of the Indian 
Reorganization Act.

                          LEGISLATIVE HISTORY

    Senator Smith (D-MN), along with Senator Klobuchar (D-MN), 
introduced S. 2868 on September 20, 2023. On the same day, the 
Senate referred the bill to the Committee on Indian Affairs. On 
February 8, 2024, the Committee held a legislative hearing to 
receive testimony on the S. 2868. On May 1, 2024, the Committee 
met at a duly convened business meeting and ordered S. 2868 
reported favorably, without amendment, by voice vote. To date, 
a companion bill has not been introduced in the House of 
Representatives.

                   COST AND BUDGETARY CONSIDERATIONS

    [GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT]


    S. 2868 would accept the request of the Lower Sioux Indian 
Community, a federally recognized Indian tribe in Minnesota, to 
revoke the community's charter of incorporation. Using 
information from the Department of the Interior, CBO estimates 
that the administrative costs to implement S. 2868 would not be 
significant; any related 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. 2868 will 
have minimal impact on regulatory or paperwork requirements.

                          EXECUTIVE TESTIMONY

    Written statement of Kathryn Isom-Clause, Deputy Assistant 
Secretary for Policy and Economic Development for Indian 
Affairs, U.S. Department of the Interior, before the U.S. 
Senate Committee on Indian Affairs, February 8, 2024, follows 
below:

          Good morning, Chairman Schatz, Vice Chairman 
        Murkowski, and members of the Committee. My name is 
        Kathryn Isom-Clause and I am the Deputy Assistant 
        Secretary for Policy and Economic Development for 
        Indian Affairs at the Department of the Interior 
        (Department). Thank you for the opportunity to present 
        testimony on . . . S. 2868, A bill to accept the 
        request to revoke the charter of incorporation of the 
        Lower Sioux Indian Community in the State of Minnesota 
        at the request of that Community, and for other 
        purposes . . . The Lower Sioux Indian Community 
        (Community) is a federally recognized Indian Tribe 
        organized under a Constitution and Bylaws adopted by 
        the Communities membership on May 16, 1936, pursuant to 
        Section 16 of the Indian Reorganization Act (IRA) under 
        which it organizes its businesses. On July 17, 1937, 
        the Community was issued and ratified a corporate 
        charter (Charter) pursuant to Section 17 of the IRA. 
        The IRA requires that, ``Any charter so issued shall 
        not be revoked or surrendered except by Act of 
        Congress,'' (25 U.S.C. Sec. 5124). S. 2868, at the 
        request of the Community, would revoke the Charter.
          In a November 2021 resolution, the Community stated 
        that it has not used the Charter since ratification in 
        1937 and it serves no function. The Department, 
        consistent with the Administration's support for Tribal 
        self-determination and self-governance, believes that 
        the decision whether to maintain or revoke such a 
        charter ultimately should be the Community's and 
        therefore supports S. 2868.

                        EXECUTIVE COMMUNICATIONS

    The Committee has received no communications from the 
Executive Branch regarding S. 2868.

                        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]