[Senate Report 119-77]
[From the U.S. Government Publishing Office]
Calendar No. 186
119th Congress } { Report
SENATE
1st Session } { 119-77
======================================================================
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
_______
October 14, 2025.--Ordered to be printed
_______
Ms. Murkowski, from the Committee on Indian Affairs,
submitted the following
R E P O R T
[To accompany S. 621]
[Including cost estimate of the Congressional Budget Office]
The Committee on Indian Affairs, to which was referred the
bill (S. 621) 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. 621 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. Once issued, however, such a charter can only
be revoked by Congress. Congress has acted numerous times to
revoke Section 17 IRA charters for Tribes.\2\
---------------------------------------------------------------------------
\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.
---------------------------------------------------------------------------
LEGISLATIVE HISTORY
S. 621 was introduced by Senators Smith and Klobuchar on
February 18, 2025. The Committee held a business meeting on
March 5, 2025, to consider S. 621 and ordered the bill to be
reported favorably, without amendment, by voice vote.
In the 118th Congress, an identical bill, S. 2868, was
introduced by Senators Smith and Klobuchar on September 20,
2023. The Committee held a legislative hearing on S. 2868 on
February 8, 2024 (S. Hrg. 118-416). At its business meeting on
May 1, 2024, the Committee on Indian Affairs ordered S. 2868
reported, without amendment, favorably (S. Rept. 118-212). The
bill passed the Senate on November 21, 2024, by voice vote.
COMMITTEE RECOMMENDATION
The Senate Committee on Indian Affairs in an open business
meeting on March 5, 2025, by a majority voice vote of a quorum
present, recommends that the Senate pass S. 621, without
amendment.
SECTION-BY-SECTION ANALYSIS
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 the revocation of the Tribe's
charter of incorporation, made under Section 17 of the Indian
Reorganization Act.
COST AND BUDGETARY CONSIDERATIONS
S. 621 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. 621 would not be
significant; any related spending would be subject to the
availability of appropriated funds.
The CBO staff contact for this estimate is Margot Berman.
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. 621 will
have minimal impact on regulatory or paperwork requirements.
EXECUTIVE COMMUNICATIONS AND TESTIMONY
The testimony provided by the U.S. Department of the
Interior from the February 8, 2024, hearing on S. 2868 follows:
statement of kathryn isom-clause, deputy assistant secretary for policy
and economic development for indian affairs, u.s. department of the
interior
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
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.
CHANGES IN EXISTING LAW
In compliance with subsection 12 of rule XXVI of the
Standing Rules of the Senate, there are no changes to existing
law that would be made by S. 621 as ordered reported.