[Federal Register Volume 67, Number 107 (Tuesday, June 4, 2002)]
[Notices]
[Pages 38517-38518]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 02-13926]


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DEPARTMENT OF THE INTERIOR

Bureau of Indian Affairs


Plan for the Use and Distribution of the Red Lake Band of 
Chippewa Indians Judgment Funds

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 Red Lake Band of Chippewa Indians (Tribe) judgment 
funds is effective as of April 28, 2002. The judgment funds were 
awarded by the United States Court of Federal Claims in Docket 189-C, 
and appropriated on February 23, 2001. The plan also provides for the 
use and distribution of escrow funds that remain from funds awarded to 
the Tribe in Dockets 189-A and 189-B. The funds were held in escrow for 
the repayment of expert assistance loans made to the Tribe by the 
Bureau of Indian Affairs. Congress waived the repayment of these loans 
under Section 813 of Title VIII of the Act of December 27, 2000, Pub. 
L. 106-568, 114 Stat. 2868.

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

SUPPLEMENTARY INFORMATION: The plan for the use and distribution of the 
funds was submitted to Congress on December 20, 2001. The receipt of 
the plan was recorded in the Congressional Record published on December 
20, 2001. The plan became effective on April 28, 2002, since a joint 
resolution disapproving it was not enacted. The plan reads as follows:

Plan

For the Use and Distribution of Red Lake Band of Chippewa Judgment 
Funds in Docket 189-C and the Escrow Funds Remaining in Dockets 189-A 
and 189-B

    The funds appropriated on February 23, 2001, in satisfaction of an 
award granted to the Red Lake Band of Chippewa Indians of the Red Lake 
Reservation in Minnesota (Tribe) in Docket 189-C, plus funds that were 
held in escrow for the payment of litigation expenses from the funds 
appropriated

[[Page 38518]]

on September 27, 1997, in Dockets 189-A and 189-B before the United 
States Court of Federal Claims (Court), including all interest and 
investment income accrued, less attorney fees and litigation expenses, 
shall be distributed as herein provided.
(A) Programming
    The programming funds shall be allocated by the Tribe for the 
following projects:
    Permanent Trust Fund Capitalization: A permanent non-expendable 
privately invested account in the sum of $40,000,000 shall be 
established by the Tribe. The interest earned on those funds (starting 
from the date the funds are transferred to the Tribe and the investment 
account is created) shall be available to implement the Red Lake Indian 
Reforestation Plan (Reforestation Plan) that was attached as Exhibit 
``A'' to the Joint Motion for Entry of Stipulated Judgment and approved 
by the Court on January 16, 2001. The Reforestation Plan may be 
modified by the Tribe in consultation with, and with the approval of 
the Secretary of the Interior.
    Litigation Costs.\1\ The sum of $7,525,657 shall be available for 
attorney fees and litigation expenses incurred by the tribe in Dockets 
189-A, B, C, and 388-82L. This amount includes the funds necessary to 
cover a debt forgiveness bill in the sum of $15,405, and the fees that 
were awarded to the Tribe by the court order dated April 18, 2001. If 
and when the Tribe receives the additional funds, those funds will be 
allocated to the Tribe's general fund.

    \1\ Litigation Costs: The attorney fees and litigation expenses 
that were advanced by the Tribe from tribal funds during the 
litigation of these claims is a qualified litigation expense under 
the terms of 25 U.S.C. that can and should be reimbursed to the 
Tribe from the judgment prior to the effective date of the plan. The 
Tribe can also advance $3,601,573.38 for payment of attorney fees 
that were awarded by the Court in the order dated April 18, 2001. 
The $3.6 million is included in the $7.5 million earmarked for 
litigation costs.

    Land Restoration Fees and Expenses: The Tribe has incurred costs 
for land restoration fees and expenses. The sum of $680,578 shall be 
available to reimburse the Tribe for costs incurred up until the date 
the plan becomes effective, and to pay the estimated cost of future 
land restoration fees and expenses.
(B) Per Capita Distribution
    The remaining funds, estimated to be $10,423,000, shall be 
distributed in the form of per capita payments (in sums as equal as 
possible) to all persons who were born on or prior to and living on 
July 31, 2001, and who are enrolled members of the Red Lake Band of 
Chippewa Indians.
    The per capita shares of living competent adults shall be paid 
directly to them, with the exception that the per capita shares of 
nursing home residents and incarcerated persons shall be paid into 
Individual Indian Money accounts for withdrawal upon application. The 
per capita shares of deceased individual beneficiaries shall be 
determined in accordance with 43 CFR, part 4, subpart D. Per capita 
shares of legal incompetents and minors shall be handled as provided in 
25 U.S.C. 1403(b)(3), except that by Order of the Red Lake Tribal 
Court, minors' funds may be withdrawn for damages, reparations or 
restitutions to victims of crime.
(C) General Provisions
    The programming portion of the judgment funds shall be disbursed to 
the Tribe within 60 days of the effective date of the plan, except that 
the litigation fees and expenses shall be available to the Tribe for 
disbursement prior to the effective date of the plan, as authorized 
under 25 U.S.C. 1401. Once the program funds are disbursed to the 
Tribe, the United States Government shall no longer have any trust 
responsibility for the investment, supervision, administration, or 
expenditure of the program portion of the judgment funds. The Tribe 
shall prepare an annual accounting of each of the program activities 
under the programming portion of this judgment fund distribution plan. 
The accounting report shall be made available to the tribal members and 
to the Secretary of the Interior.
    The Secretary, in arranging for per capita payments to be made, 
shall withhold sufficient shares for individuals whose eligibility may 
be in question. Those shares shall be held in a separate interest-
bearing account pending determination of enrollment appeals. Funds not 
used to pay shares and pro rata interest to successful applicants, plus 
any other residual balances shall be disbursed to the tribe and 
allocated to the Tribe's general fund.
    None of the funds distributed per capita or made available under 
this plan for programming shall be subject to Federal or State income 
taxes, nor shall such funds nor their availability be considered as 
income or resources nor otherwise utilized as the basis for denying or 
reducing the financial assistance or other benefits to which such 
household or member would otherwise be entitled under the Social 
Security Act, or except for per capita shares in excess of $2,000 any 
Federal or federally assisted programs.
    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: May 24, 2002.
Neal A. McCaleb,
Assistant Secretary--Indian Affairs.
[FR Doc. 02-13926 Filed 6-3-02; 8:45 am]
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