[Federal Register Volume 63, Number 233 (Friday, December 4, 1998)]
[Notices]
[Pages 67127-67131]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-32301]


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DEPARTMENT OF THE INTERIOR

Bureau of Indian Affairs


Plan for the Use and Distribution of the Little River Band of 
Ottawa Indians Share of the Judgment Funds in Docket Nos. 18-E, 58 and 
364 Before the Indian Claims Commission

AGENCY: Bureau of Indian Affairs, Interior.

ACTION: Notice.

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SUMMARY: Notice is hereby given that the plan for the use and 
distribution of the Little River Band of Ottawa Indians' share of the 
judgment funds awarded to

[[Page 67128]]

the Ottawa and Chippewa Indians of Michigan in Docket Nos. 18-E, 58 and 
364 is effective as of September 28, 1998.

FOR FURTHER INFORMATION CONTACT: Daisy West, Bureau of Indian Affairs, 
Division of Tribal Government Services, MS-4631-MIB, 1849 C Street, NW, 
Washington, D.C. 20240. Telephone number: (202) 208-2475.

SUPPLEMENTARY INFORMATION: The Michigan Indian Land Claims Settlement 
Act of December 15, 1997, 111 Stat. 2652, and section 3(b) of the 
Indian Tribal Judgment Funds Act, 25 U.S.C. 1403(b), requires that a 
plan be prepared and submitted to Congress for the use and distribution 
of Little River Band of Ottawa Indians' share of the funds awarded to 
the Ottawa and Chippewa Indians of Michigan before the Indian Claims 
Commission in Docket Nos. 18-E, 58 and 364. The plan for the use and 
distribution of the funds was submitted to Congress on June 3, 1998, by 
letters dated June 2, 1998. The receipt of the letters by the House of 
Representatives and the Senate was recorded in the Congressional Record 
published on June 9 and 11, 1998, respectively. The plan became 
effective on September 28, 1998, since a joint resolution disapproving 
it was not enacted. The plan reads as follows:

Plan

For the Use and Distribution of Little River Band of Ottawa Indians 
Judgment Funds, Dockets 18-E, 58 and 364

Section 1. Purpose and Definitions

    1.01. Purpose. This 80/20 Plan has been developed as a result of 
the Indian Claims Commission dockets numbered 18-E, 58, and 364 and the 
passage of Public Law 105-143, cited as the ``Michigan Indian Land 
Claims Settlement Act'', which was passed on December 15, 1997, and 
provides for the division of judgment funds of the Ottawa and Chippewa 
Indians of Michigan. Pursuant to this law, the Little River Band of 
Ottawa Indians must submit a plan to the Secretary of Interior. The 
Secretary shall review the plan and discuss any problems of the plan 
with the Tribe. After this review, the plan shall be submitted to 
Congress prior to the distribution of any of these funds to the Tribe.
    The 80/20 Plan was developed by the Tribe and approved by the 
Tribal members to meet the minimum standards necessary for the 
Secretary's approval. This plan also meets all of the criteria for 
approval of the Secretary and Congress, including:
    (a) The needs and desires of any groups or individuals who are in a 
minority position, but who are also entitled to receive such funds, 
have been fully ascertained and considered;
    (b) The interests of minors and other legally incompetent persons 
who are entitled to receive any portion of such funds as are 
subsequently distributed to them are and will be protected and 
preserved; provided, that such funds may be disbursed to the parents or 
legal guardian of such minors or legal incompetents in such amounts as 
may be necessary for the minor or legal incompetent's health, 
education, welfare, or emergencies under a plan or plans approved by 
the Secretary and the tribal governing body of the Indian tribe 
involved;
    (c) Any provision, including enrollment provisions, of the 
constitution, bylaws, rules, and procedures of such tribe which may 
affect the distribution or other use of such funds are in full accord 
with the principles of fairness and equity; and,
    (d) A significant portion of such funds shall be set aside and 
programmed to serve common tribal needs, educational requirements, and 
such other purposes as the circumstances of the affected Indian tribe 
may justify, except not less than 20 per centum of such funds shall be 
so set aside and programmed unless the Secretary determines that the 
particular circumstances of the pertinent Indian tribe clearly warrant 
otherwise: provided, that in the development of such plan the Secretary 
shall survey past and present plans of the tribe for economic 
development, shall consider long range benefits which might accrue to 
the tribe from such plans, and shall encourage programming of funds for 
economic development purposes where appropriate.

Definitions

    1.02. 80/20. The 80/20 Tribal Plan will be referred in this 
document as ``Tribal plan'' or ``plan''.
    1.03. Effective Date of the 80/20 Tribal Plan. The effective date 
of the plan means the date that the plan is approved by Congress. 
Unless the plan is disapproved by Congress, the effective date of the 
plan shall be the sixtieth (60) day after formal submittal of the plan 
by the Secretary to the Congressional Committees (excluding days on 
which either the House of Representatives or the Senate is not in 
session because of an adjournment of more than three calendar days to a 
day certain). In the event that the plan is disapproved by either 
House, the effective date shall be the date the enabling legislation 
for the disposition of the judgment funds is enacted into law.
    1.04. Secretary of Interior. The ``Secretary'' as used in this plan 
means the Secretary of Interior.
    1.05. Qualified Tribal member for one time per capita payments. For 
purposes of determining eligibility for receiving a per capita payment 
under any Tribal plan for the use and distribution of the Little River 
Band of Ottawa Indians' share of the Dockets 18-E, 58, and 364 Judgment 
Funds, ``qualified Tribal member'' shall mean any individual who has 
applied for enrollment before 12:00 a.m. (midnight), Friday, January 
30, 1998, and is duly enrolled in the Little River Band of Ottawa 
Indians in accordance with Article III of the interim Constitution and 
the Tribal Ordinance No. #94-1018-01 or Tribal Ordinance No. 97-200-01.
    In order for any duly enrolled Tribal member to be entitled to the 
one time per capita payment, the member's application for enrollment 
must be received at the Tribal offices before 12:00 a.m. (midnight), 
Friday, January 30, 1998. If an applicant who timely files his/her 
application is denied enrollment and fails to appeal the decision, that 
person will lose his/her right to the one time per capita payment if 
he/she reapplies and becomes a duly enrolled member at a later date. 
All persons eligible for the one time per capita payments must be 
living as of the effective date of this plan. Any person who has 
received a distribution from another tribe pursuant to Dockets 18-E, 
58, and 364 of the Indian Claims Commission shall not be eligible to 
receive the one time per capita payments from the Little River Band of 
Ottawa Indians.
    1.06. Minor qualified tribal member for one time per capita 
payments. A minor qualified Tribal member for purposes of determining 
eligibility must fulfill all of the ``qualified tribal member'' 
requirements in Section 1.05 and must be under the age of 18 years as 
of the effective date of this plan.
    1.07. Incompetent qualified Tribal member eligible for one time per 
capita payments. An incompetent qualified Tribal member for purposes of 
determining eligibility must fulfill all of the ``qualified tribal 
member'' requirements in Section 1.05 and must: (1) be declared 
incompetent by a court of competent jurisdiction; and, (2) have his/her 
legal guardian inform the Tribal Registrar in writing of the person's 
legal incompetence and provide evidence that he/she is the 
incompetent's legal guardian prior to the effective date of the plan.
    1.08. Incarcerated qualified Tribal member eligible for one time 
per capita payments. An incarcerated qualified

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Tribal member for purposes of determining eligibility for the one time 
per capita payments must fulfill all of the requirements in Section 
1.05 and must: (1) inform the Tribal Registrar in writing of his/her 
incarceration and provide evidence that he/she is incarcerated prior to 
the effective date of the plan; and, (2) must notify the Tribal 
Registrar and execute a Power of Attorney, prior to the effective date, 
if he/she wishes to elect to have his/her per capita money held in 
trust until he/she is released from confinement. The Tribal Council 
shall develop appropriate forms and procedures to implement this 
Section.
    1.09. Qualified Tribal Members Eligible to Vote on Judgment Funds 
Proposals. Each member who is duly enrolled in the Little River Band of 
Ottawa Indians by January 14, 1998, and has attained the minimum age of 
18 years by January 14, 1998, shall be eligible to vote in the election 
of the judgment funds proposals, with the exception of incompetent 
persons who will not be allowed to vote, nor will any person be allowed 
to vote on his/her behalf. An incarcerated person shall be allowed to 
vote.

Section 2. Disbursement of Judgment Funds Following Effective Date

    2.01. The Secretary shall disburse the Tribe's share of the 
judgment funds not later than 30 days after the effective date in 
accordance with Section 105 of the Michigan Indian Land Claims 
Settlement Act.
    2.02. Notwithstanding any other provision of law, the United States 
shall have no trust responsibility for the investment, supervision, 
administration, or expenditure of any portion of the judgment funds, 
including the per capita payment aspects of the plan, after such funds 
are disbursed to the Tribe.
    2.03. Within 10 business days after receipt of the Tribe's share of 
the judgment funds, the Tribal Council shall arrange to have eighty 
(80%) percent of the judgment funds deposited in a segregated account 
for the purpose of implementing the per capita payment aspects of the 
plan described in Section 3. Within 10 business days after receipt of 
the Tribe's share of the judgment funds, the Tribal Council shall 
arrange to have the twenty (20%) percent of the judgment funds 
programmed for land acquisition deposited in a segregated account for 
the purpose of implementing the land acquisition provisions described 
in Sections 4 and 5 of this plan.

Section 3. One Time Per Capita Payments to all Tribal Members

    3.01. As compensation to the members of the Little River Band of 
Ottawa Indians for the delay in distribution of the judgment fund and 
to advance the current personal health, safety and welfare of qualified 
Tribal members, eighty (80%) percent of the Little River Band of Ottawa 
Indians' share of the judgment fund, shall be divided into equal shares 
and distributed to all qualified Tribal members, including minor 
qualified members, adult qualified members who are legally incompetent, 
and incarcerated members.
    3.02. How per capita payment will be made. In order to fairly 
compensate all members of the Little River Band of Ottawa Indians, the 
per capita payment may be made in two payments. The first payment will 
be based on the completion of two separate rolls, which will be 
completed within 30 days after the effective date of this plan. One 
roll will list each duly enrolled qualified member. The second roll 
will list each applicant who filed his/her application by 12:00 a.m. 
(midnight), Friday, January 30, 1998, whose application is still 
pending. The number of persons on these two rolls will be added 
together and divided into the total per capita amount, which will equal 
the amount of the first check that each duly enrolled member will 
receive. The balance remaining, if any, after all eligible applications 
have been processed and the appeals time has run shall be divided by 
the total number of qualified tribal members enrolled from the two 
rolls described above and distributed to such qualified tribal members 
in a second payment. A more detailed explanation of this process is 
outlined in Appendix 1.
    3.03. (a) In the event that a member of the Little River Band of 
Ottawa Indians, who is eligible for payment under this section, should 
die after the effective date of this plan and prior to the one time 
payment distribution, that individual's one time payment shall be 
provided to the member's heirs at law.
    (b) In the event that a minor, incompetent or incarcerated person 
should die while his/her money is in trust, that money shall be 
distributed to the member's heirs at law.
    3.04. Establishment of Trust Accounts for Minor and Incompetent 
Tribal Members. In order to provide for the current and future safety 
and well being of qualified Tribal members under this section who are 
minors and fulfill the requirements of Section 1.06, have been declared 
incompetent by a court of competent jurisdiction and whose legal 
guardian has fulfilled the requirements of Section 1.07, and 
incarcerated individuals who have fulfilled the requirements of Section 
1.08, the per capita benefit for such qualified tribal members shall be 
placed in a private trust account by the Tribal Council, and:
    (a) The trust shall have segregated accounts for each qualified 
minor, incompetent, and incarcerated, members based on his/her per 
capita share, and
    (b) The trust agreement shall specifically provide that the 
investment policy to be followed is that of preserving the trust corpus 
and of obtaining the highest interest rates current money markets can 
safely provide. The trust agreement must further provide that maturity 
dates of investments cannot exceed the period of the trust and that 
only the following types of investment shall be made: United States 
Treasury obligations; Federal agency obligations; repurchase/resell 
agreements; United States Treasury bills; Bankers' acceptance, provided 
the assets of the issuing bank exceed $1 billion or the issuing bank 
pledges full collateral; Certificates of deposit, provided the assets 
of the issuing bank exceed $1 billion or the issuing bank pledges full 
collateral; Commercial paper, provided it is rated prime-2 by Moody or 
A-2 by Standard and Poor or is obligation of a company with outstanding 
unsecured debt rated AA by Standard and Poor.
    3.05. Release of funds regarding legal incompetents.
    (a) Upon the petition of the legal guardian of the beneficiary, 
trust assets shall be distributed to the beneficiary in any amounts as 
the Tribal Court determines appropriate for the beneficiary's health, 
welfare or economic security, including his/her support, maintenance, 
and education.
    (b) The Tribal Court may require that the petitioning guardian 
submit receipts of expenditures made on behalf of the beneficiary 
before any disbursements are made, and shall require that the 
petitioning guardian account to the Tribal Court or trustee for any 
expenditures made from distributions from the trust or trusts.
    (c) The Tribal Court may, at its discretion, authorize the trustee 
or trustees to establish a regular monthly distribution from the trust 
for the beneficiary.
    3.06. Release of funds regarding minors.
    (a) All assets accumulated in the trust for the benefit of a minor 
qualified tribal member shall be distributed at such time as the 
beneficiary reaches the age

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of 18, upon application of the beneficiary, providing sufficient 
evidence of eligibility, approved by the Tribal Council.
    (b) Prior to the time the beneficiary reaches the age of (18), and 
upon the petition of a parent(s), legal guardian(s) of the minor, or an 
emancipated minor, the Tribal Court shall make distributions from the 
trusts in such amounts as deemed necessary in the best interests of the 
minor, for the minor's support, health, education, or welfare to the 
parents, legal guardians, fiduciaries, emancipated minor, or to persons 
having the control and custody of the minor.
    (c) The Tribal Court may require that the petitioning parent or 
legal guardian submit receipts of expenditures made on behalf of the 
minor before any disbursements are made, and shall require that the 
petitioning parent or guardian provide an accounting to the Tribal 
Court or trustee for any expenditures made from distributions from the 
trust or trusts.
    3.07. Release of funds to incarcerated person. Upon the petition of 
an incarcerated person, trust assets shall be distributed to such 
incarcerated person during his/her incarceration in any amounts as the 
Tribal Court determines appropriate for such incarcerated person's 
health, welfare or economic security, or that of such member's family, 
including support, maintenance, and education.
    3.08. The interest of each beneficiary shall be accounted for 
separately by the trustee, and a trust account statement shall be 
available at least semiannually to the parent or legal guardian of the 
beneficiary.
    3.09. In order to further the policies and goals underlying the 
contribution of per capita benefits into trust for minors, legally 
incompetent persons, and incarcerated persons, it is the intent of the 
Tribal Council to seek a private letter ruling from the Internal 
Revenue Service regarding the tax treatment of income earned on the 
trust benefits concerning the deferred per capita payments to minors, 
legally incompetent persons, and incarcerated persons.
    3.10. The Little River Band of Ottawa Indians shall notify the 
member if any part of the payments are subject to Federal income 
taxation at such time as the benefits are paid to the member from the 
trust, or distributed to the member pursuant to a deferred annual 
payment distribution plan consistent with any private letter ruling 
from the Internal Revenue Service, and make any withholding of income 
tax from and reporting of such payments as may be required under the 
Internal Revenue Code.
    3.11. Except for the members for whom per capita payments are being 
placed in trusts, the per capita payments for any qualified tribal 
member shall be mailed to the last known address of the member on file 
with the Little River Band of Ottawa Indians' Tribal Registrar. The 
burden of registration with the Office of the Tribal Registrar is with 
the member to ensure that the Tribal Registrar has the member's correct 
and current address. Per capita payments returned to the Little River 
Band as undeliverable shall be maintained by the Little River Band and 
deposited into an interest-bearing escrow account. The member shall 
have 365 days to claim the returned payment. If the returned benefits 
are not claimed within that time period, the benefits shall revert back 
to the Little River Band of Ottawa Indians and shall be deposited in 
the Reservation Restoration Trust established in Section 4 of this 
Plan.

Section 4. Allocation for Land Acquisition

    4.01. From the twenty percent (20%) of the Little River Band of 
Ottawa Indians' share of the judgment funds reserved for Tribal 
purposes, the sum of $1,500,000 shall be allocated for the acquisition 
of land to increase tribal land holdings or to pay the principal 
balance of loans owing on properties owned by the Tribal government. 
The Tribal Council shall use the funds allocated under this section for 
the acquisition of specific properties or for the purposes identified 
in the Tribe's Reservation Restoration Plan--Phase I (adopted February 
9, 1997), and shall give priority to acquisition of lands for economic 
development purposes or to pay the principal balance and any accrued 
interest on loans owing on such properties. If funds are available by 
May 1, 1999, Tribal Council shall also purchase the properties 
described in Exhibit 2-A of Appendix C of the Ludington Pumped Storage 
Project Settlement Agreement--Courts and Non-FERC Agencies, a copy of 
which is attached and incorporated herein by reference. If the options 
described above have expired, the Tribal Council shall give priority to 
the acquisition of lands for economic development purposes and for the 
development of Tribal Housing and Community Facilities. Upon acquiring 
any land, the Tribal Council may sell or exchange such lands for equal 
value, or may request that the United States hold the land in trust for 
the Little River Band of Ottawa Indians.

Section 5. Reservation Restoration Trust Fund

    5.01. The Tribal Council shall establish an irrevocable, 
nonexpendable trust to be known as the ``Reservation Restoration Trust 
Fund.'' In order to promote the accomplishment of the goals defined in 
the Little River Band of Ottawa Indians' Reservation Restoration Plan, 
the remaining balance in the Little River Band of Ottawa Indians' share 
of the judgment fund following allocation of the one time per capita 
payments to all members and the Initial Allocation for Land Acquisition 
shall be placed in the ``Reservation Restoration Trust Fund''.
    5.02. Investment. Monies paid into the Reservation Restoration 
Trust Fund pursuant to this section, as well as income from investment, 
shall be invested in high quality corporate, government, or government 
agency bonds, including commercial or financial company paper, which is 
rated in one of the two highest ratings by a nationally recognized 
rating agency; and time deposits or repurchase agreements with any bank 
or trust company organized under the laws of any state of the United 
States, or national banking association, provided that such time 
deposits or repurchase agreements do not exceed at any one time in the 
aggregate lot of the total of the capital and surplus of such bank or 
trust company or national banking association, and such bank or trust 
company or national banking association has a combined capital and 
surplus of at least $15,000,000.
    5.03. Not later than 60 days after receipt of the funds distributed 
to the Little River Band of Ottawa Indians pursuant to this Act, the 
Tribal Council shall deposit into the Reservation Restoration Trust 
Fund the principal, which shall consist of:

    (a) The initial portion of the judgment funds described above;
    (b) Such other funds which the Tribal Council chooses to add to 
the Reservation Restoration Trust Fund.

    5.04. The Tribal Council shall be the trustee of the Reservation 
Restoration Trust Fund and shall administer the Reservation Restoration 
Trust Fund in accordance with this section. The Tribal Council may 
retain or hire a professional trust manager and may pay the prevailing 
market rate for such services. Such payment for services shall be made 
from the current income accounts of the trust and charged against 
earnings of the current fiscal year.
    5.05. Ninety percent of the earnings generated by the Reservation

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Restoration Trust Fund may be used annually and shall be used 
exclusively for the acquisition of specific properties, or for the 
purposes, identified in the Tribe's Reservation Restoration Plan. There 
shall be an annual review of the plan to update it for purposes of 
identifying the priorities of properties in consultation with the Land 
Acquisition Committee. Upon acquiring any land, the Tribal Council may 
request that the United States hold the land in trust for the Little 
River Band of Ottawa Indians. The remaining earnings, after payment to 
the trust manager and the independent certified public accountant, 
shall be added to the principal of the Reservation Restoration Trust 
Fund.
    5.06. The Tribal Council shall maintain the Reservation Restoration 
Fund on an annual basis, which includes:

    (a) Maintaining ten percent (10%) of the annual earnings 
generated by the Reservation Restoration Trust Fund, after payments 
to the trust manager and independent certified public accountant in 
the Reservation Restoration Fund;
    (b) Using any portion of the ninety percent of the earnings that 
was not used in one year, in any subsequent year thereafter; and,
    (c) Depositing any other funds which the Tribal Council chooses 
to add to the Reservation Restoration Trust Fund.

    5.07. The principal of the Reservation Restoration Trust Fund shall 
not be expended for any purpose, including but not limited to, per 
capita payments to members of the Little River Band of Ottawa Indians.
    5.08. The Reservation Restoration Trust Fund shall be maintained as 
a separate account, which shall be audited at least once during each 
fiscal year by a certified public accountant who shall prepare a report 
on the results of such audit. Such report shall be a public document, 
and shall be available for inspection by any member of the Little River 
Band of Ottawa Indians.
    5.09. Notwithstanding any other provision of law, the approval of 
the United States of any payment from the Reservation Restoration Trust 
Fund shall not be required and the United States shall have no trust 
responsibility for the investment, supervision, administration, or 
expenditure of funds from the Reservation Restoration Trust Fund.

Section 6.Tribal Sovereign Immunity

    6.01. Nothing in this plan shall provide, or be interpreted to 
provide, a waiver of the sovereign immunity from suit of the Little 
River Band of Ottawa Indians or any of its governmental officers and/or 
agents.
    6.02. Nothing in this plan shall create a duty of financial 
obligation on the part of the Little River Band of Ottawa Indians or 
any of its officers and/or agents to provide judgment fund distribution 
payments to an individual who alleges that he/she did not receive a per 
capita distribution check; provided, however, that the Little River 
Band of Ottawa Indians must show:

    (a) The individual's name does not appear on any of the rolls 
authorized under this plan; or
    (b) The individual's name: (i) appeared on one of the rolls 
authorized under this plan; and, (ii) a copy of the per capita check 
is returned by the Tribal Administration as proof of distribution to 
the last known address of the individual entitled to a per capita 
check.

    This notice is published in exercise of authority delegated to the 
Assistant Secretary--Indian Affairs under 25 U.S.C. 2 and 9 and 209 DM 
8.

    Dated: November 19, 1998.
Kevin Gover,
Assistant Secretary--Indian Affairs.
[FR Doc. 98-32301 Filed 12-3-98; 8:45 am]
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