[House Report 106-944]
[From the U.S. Government Publishing Office]
106th Congress Report
HOUSE OF REPRESENTATIVES
2d Session 106-944
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PROVIDING FOR EQUITABLE COMPENSATION FOR THE CHEYENNE RIVER SIOUX
TRIBE, AND FOR OTHER PURPOSES
_______
October 6, 2000.--Committed to the Committee of the Whole House on the
State of the Union and ordered to be printed
_______
Mr. Young of Alaska, from the Committee on Resources, submitted the
following
R E P O R T
[To accompany S. 964]
[Including cost estimate of the Congressional Budget Office]
The Committee on Resources, to whom was referred the bill
(S. 964) to provide for equitable compensation for the Cheyenne
River Sioux Tribe, and for other purposes, having considered
the same, report favorably thereon without amendment and
recommend that the bill do pass.
PURPOSE OF THE BILL
The purpose of S. 964 is to provide equitable compensation
to the Cheyenne River Sioux Tribe.
BACKGROUND AND NEED FOR LEGISLATION
The purpose of S. 964 is to provide additional compensation
to the Cheyenne River Sioux Tribe of South Dakota for the
acquisition by the United States of 104,492 acres of tribal
land for the construction of the Oahe Dam and Reservoir on the
Missouri River.
The Pick-Sloan Missouri River Basin Program was included by
Congress in the Flood Control Act of 1944 (33 U.S.C. 701-1, et
seq.) to increase economic development in the Missouri River
Basin. The project was designed to provide flood control,
irrigation, and hydro-power to that part of the Nation in 1944.
Cheyenne River Sioux tribal lands along the Missouri River
were confiscated for use in the construction of the Oahe Dam
and Reservoir project. Over 104,490 acres of tribal lands were
inundated, reservation communities were flooded, and 30 percent
of the entire tribal population was forced to relocate from the
fertile bottom lands along the river to much less hospitable
upland prairie. The Tribe thereby lost its ready source of
potable water, its ceremonial grounds, a major portion of its
cattle herd which had no place to graze, 90 percent of its
timber, and most of its agricultural land.
In turn, the Tribe did not receive any of the benefits
which the Pick-Sloan Program was designed to bring to the other
residents of the Missouri River Valley. Unlike many South
Dakota communities that received allocations of low-cost
hydropower which they were able to turn into a source of
revenue for their activities, the Tribe's request for such an
allocation was denied. Nor did the Tribe receive any low-cost
power for its own use. Instead, despite the generation of large
amounts of hydropower from the Pick-Sloan power program, the
cost of electricity on the Tribe's reservation has remained
among the highest in the United States, burdening an already
impoverished membership and serving as a barrier to economic
development.
Ten years after Pick-Sloan Missouri River Basin Program was
enacted into law, Congress enacted legislation to provide
compensation to the Tribe in exchange for the acquisition of
the Tribe's lands. Non-Indians received an average of $49.22
per acre for their agricultural lands, while the Tribe received
only $21.49 per acre.
Various other tribes, whose reservations on the Missouri
River had been adversely affected by flooding caused by the
construction of Pick-Sloan project dams, sought additional
compensation to rectify what they also considered to have been
woefully inadequate compensation in view of their actual
losses. As a result, the Secretary of the Interior established
a Joint Tribal-Federal Advisory Committee (JTAC) to examine and
make recommendations with respect to the effects of the
impoundment of waters under the Pick-Sloan Missouri River Basin
Program (Oahe and Garrison Reservoirs) on the Fort Berthold and
Standing Rock Indian Reservations in 1984. The study concluded
that the compensation that was provided to those Tribes in the
1950s indeed was inadequate and did not take into account the
full extent of the Tribes' losses. Subsequently, the Congress
asked the General Accounting Office (GAO) to review economic
analyses prepared by consultants for the Fort Berthold and
Standing Rock Tribes that documented what the Tribes considered
to be the difference between the actual losses suffered as a
result of the building of the Garrison Dam and the amount the
Tribes received in compensation in 1952. The GAO recommended
that the Congress base its decision on how much to provide
additional compensation on a formula.
In view of the JTAC study findings and the GAO review,
Congress enacted legislation that acknowledged, first, that the
U.S. government did not justly compensate the Tribes at Fort
Berthold and Standing Rock when it acquired their lands and,
second, that the Tribes were entitled to additional
compensation. Accordingly, legislation was enacted similar to
S. 964 to compensate the Three Affiliated Tribes of the Fort
Berthold Reservation and the Standing Rock Sioux Tribe. In
arriving at compensation amounts, the Congress adopted the GAO
formula using a corporate interest rate option in its
calculations. In 1996, Congress enacted similar legislation for
the Crow Creek Sioux Tribe, and in 1997 Congress enacted
similar legislation for the Lower Brule Sioux Tribe.
The Cheyenne River Sioux Tribe legislation, S. 964, employs
the same 1991 GAO formula used in the aforementioned
legislation applicable to the other Tribes affected by the
Pick-Sloan project. Using this formula, the GAO calculated the
amount of additional compensation owed to the Tribe to be $290
million.
SUMMARY OF PROVISIONS
Title I--Cheyenne River Sioux Tribe equitable compensation
Title I, the Cheyenne River Sioux Tribe Equitable
Compensation Act, would provide additional compensation for the
Cheyenne River Sioux Tribe pursuant to the GAO formula in an
amount roughly proportionate to that provided for the Fort
Berthold, Standing Rock, Crow Creek and Lower Brule tribes.
The bill provides for the establishment in the U.S.
Treasury of the Cheyenne River Sioux Tribal Recovery Trust
Fund. On the first day of the eleventh fiscal year that begins
after the enactment of S. 964, the Secretary of the Treasury is
directed to deposit into the Fund $290,722,958 from the General
Fund of the Treasury, together with an additional amount that
equals the amount of interest that would have accrued on that
deposit had it been invested in interest-bearing obligations
guaranteed as to both principal and interest by the United
States, on the first day of the first fiscal year that begins
after the date of enactment of this bill and compounded
annually thereafter. The Secretary is to invest these funds
only in interest-bearing obligations of the United States or in
obligations guaranteed as to both principal and interest by the
United States, and to deposit interest from such investments in
the Fund.
Beginning on the first day of the eleventh fiscal year
after enactment, and on the first day of each fiscal year
thereafter, the Secretary of the Treasury shall transfer the
aggregate amount of interest on the Fund to the Secretary of
the Interior, who shall use the money to make payments to the
Tribe pursuant to tribal resolution. The Tribe could spend the
interest earned on the Fund to promote its economic and
infrastructure development, and the educational, health,
recreational and social welfare objectives of the Tribe and its
members. No amount of the principal could be withdrawn nor
could any of the interest be used to make per capita payments
to tribal members. Upon the deposit of funds, together with
interest, into the Fund, S. 964 would extinguish all monetary
claims which the Tribe has or may have against the United
States for the taking of its land and property by the United
States for the Oahe Dam and Reservoir Project.
Title II--Bosque Redondo Memorial
Title II of S. 964 is entitled the ``Bosque Redondo
Memorial Act''. This title would authorize $1,000,000 in fiscal
year 2000 and $500,000 for each of fiscal years 2001 and 2002
for use as matching grants to the State of New Mexico to create
a memorial to the nearly 9,000 Navajo Indians who were detained
by the United States in 1863 and forced to march 350 miles to
Bosque Redondo, New Mexico, where they were incarcerated at
Fort Sumner, together with members of the Mescalero Apache
Tribe.
In 1868, the Navajo Nation signed a treaty with the United
States, and the survivors of the ``Long Walk'' were allowed to
return to their reservation after surviving five years of harsh
living conditions. The grants and State matching funds would
provide for the construction of a memorial and visitor-
interpretive center at Fort Sumner State Monument in New Mexico
that would offer all Americans opportunities to learn about and
appreciate the significance of a painful episode in the history
of the Navajo and Apache peoples' relationship with the United
States government.
For additional information, see Senate Report 106-217.
COMMITTEE ACTION
S. 964 was introduced on May 5, 1999, by Senator Tom
Daschle (D-SD). The bill was passed by the Senate on November
19, 1999, with an amendment by unanimous consent. In the House
of Representatives, the bill was referred to the Committee on
Resources. On September 13, 2000, the Full Resources Committee
met to mark up the bill. No amendments were offered and the
bill was then ordered favorably reported to the House of
Representatives by voice vote.
COMMITTEE OVERSIGHT FINDINGS AND RECOMMENDATIONS
Regarding clause 2(b)(1) of rule X and clause 3(c)(1) of
rule XIII of the Rules of the House of Representatives, the
Committee on Resources' oversight findings and recommendations
are reflected in the body of this report.
CONSTITUTIONAL AUTHORITY STATEMENT
Article I, section 8 of the Constitution of the United
States grants Congress the authority to enact this bill.
COMPLIANCE WITH HOUSE RULE XIII
1. Cost of Legislation. Clause 3(d)(2) of rule XIII of the
Rules of the House of Representatives requires an estimate and
a comparison by the Committee of the costs which would be
incurred in carrying out this bill. However, clause 3(d)(3)(B)
of that Rule provides that this requirement does not apply when
the Committee has included in its report a timely submitted
cost estimate of the bill prepared by the Director of the
Congressional Budget Office under section 402 of the
Congressional Budget Act of 1974.
2. Congressional Budget Act. As required by clause 3(c)(2)
of rule XIII of the Rules of the House of Representatives and
section 308(a) of the Congressional Budget Act of 1974, this
bill does not contain any new budget authority, credit
authority, or an increase or decrease in revenues or tax
expenditures. The Congressional Budget Office indicates that
enactment of this bill will increase direct spending by an
estimated $493 million, but that pay-as-you-go procedures do
not apply because the spending out occur in 2011.
3. Government Reform Oversight Findings. Under clause
3(c)(4) of rule XIII of the Rules of the House of
Representatives, the Committee has received no report of
oversight findings and recommendations from the Committee on
Government Reform on this bill.
4. Congressional Budget Office Cost Estimate. Under clause
3(c)(3) of rule XIII of the Rules of the House of
Representatives and section 403 of the Congressional Budget Act
of 1974, the Committee has received the following cost estimate
for this bill from the Director of the Congressional Budget
Office:
U.S. Congress,
Congressional Budget Office,
Washington, DC, September 14, 2000.
Hon. Don Young,
Chairman, Committee on Resources,
House of Representatives, Washington, DC.
Dear Mr. Chairman: The Congressional Budget Office has
prepared the enclosed cost estimate for S. 964, the Cheyenne
River Sioux Tribe Equitable Compensation Act.
If you wish further details on this estimate, we will be
pleased to provide them. The CBO staff contacts are Lanette
Keith (for federal costs) and Marjorie Miller (for the impact
on state, local, and tribal governments).
Sincerely,
Steven M. Lieberman
(For Dan L. Crippen, Director).
Enclosure.
S. 964--Cheyenne River Sioux Tribe Equitable Compensation Act
Summary: S. 964 would compensate the Cheyenne River Sioux
Tribe--in 2011--for the taking of certain lands in South Dakota
and would authorize appropriations for the construction of a
memorial for the Navajo and Mescalero Apache people who were
incarcerated at Bosque Redondo, New Mexico, in the 1800s. CBO
estimates that implementing S. 964 would cost $2 million over
the 2001-2005 period, assuming appropriation of the necessary
amounts. Enacting S. 964 also would increase direct spending by
an estimated $493 million, but pay-as-you-go procedures would
not apply because the spending would not occur until fiscal
year 2011.
S. 964 contains no intergovernmental or private-sector
mandates as defined in the Unfunded Mandates Reform Act (UMRA).
State, local, and tribal governments might incur some costs as
a result of S. 964's enactment, but these costs would be
voluntary.
Estimated cost to the Federal Government: For purposes of
this estimate, CBO assumes that S. 964 will be enacted near the
start of fiscal year 2001 and that the amounts necessary to
implement the act will be appropriated each year. Estimated
outlays are based on historical spending patterns for similar
activities.
Direct spending
Title I of S. 964 would provide additional compensation to
the Cheyenne River Sioux Tribe for the taking of 104,492 acres
of land by the federal government to construct the Oahe Dam and
Reservoir project. Construction of the dam began in 1948 and
compensation of about $10 million was paid to the tribe in
1955. The act would establish the Cheyenne River Sioux Tribal
Recovery Trust Fund and would direct the Secretary of the
Treasury to deposit $291 million in the fund on the first day
of fiscal year 2011. An additional deposit equal to the amount
of interest that the fund would have earned if the fund had
been capitalized and invested in 2001 would be made at the same
time. CBO estimates that this additional payment would total
$202 million, for a total deposit of $493 million in 2011. Once
the Secretary pays these amounts, any monetary claims the tribe
may have against the United States regarding this project would
be extinguished. Starting in 2011, the act would allow the
tribe to spend amounts equivalent to the annual interest earned
on the fund pursuant to a tribal spending plan.
The federal budget excludes trust funds that are held and
managed in a fiduciary capacity by the federal government on
behalf of Indian tribes. Hence, deposits to the trust fund
established under this act would be treated as payments to a
nonfederal entity. As a result, CBO expects that the entire
amount deposited to the fund in 2011 would be recorded as
budget authority and outlays in that year. Because the trust
fund would be nonbudgetary, the subsequent use of such funds by
the tribe would not affect federal outlays.
Spending subject to appropriation
Title I would authorize the appropriation of such sums as
may be necessary to cover the administrative costs for the
Cheyenne River Sioux Tribal Recovery Trust Fund. Based on
information from the Department of the Interior, CBO estimates
that these costs would not be significant in any year.
Title II would authorize the Secretary of Defense, upon the
request of the state of New Mexico, to establish the Bosque
Redondo Memorial within the boundaries of Fort Summer State
Monument. The provision would authorize the Secretary to make
grants to New Mexico for up to 50 percent of its construction
costs. CBO estimates that the federal share of the memorial
would cost $2 million. The act would require the state to match
the federal contribution to be eligible for the grants. Based
on information from the state, CBO expects these matching funds
to be provided during 2001. Assuming appropriation of the
necessary amounts. CBO estimates that the entire federal share
of the cost of constructing the monument would be spent during
the 2001-2005 period.
Pay-as-you-go considerations: The Balanced Budget and
Emergency Deficit Control Act sets up pay-as-you-go procedures
for legislation affecting direct spending or receipts. For the
purposes of enforcing pay-as-you-go procedures, only the
effects in the budget year and the succeeding four years are
counted. Although enacting this legislation would increase
direct spending by an estimated $493 million, pay-as-you-go
procedures would not apply to the act because the outlay would
occur in fiscal year 2011.
Estimated impact on State, local, and tribal governments:
S. 964 contains no intergovernmental mandates as defined in
UMRA, but it would impose some conditions on the Cheyenne River
Sioux and on the State of New Mexico for receipt of Federal
funds. Title I would require the tribe to prepare and adopt a
plan for using payments from the trust fund and to obtain an
audit of the funded expenditures. Based on information provided
by tribal officials, CBO does not expect that these
requirements would result in significant additional costs for
the tribe. Title II would require New Mexico to contribute
matching funds equal to 50 percent of the costs of constructing
the Bosque Redondo Memorial.
Estimated impact on the private sector: This Act contains
no new private-sector mandates as defined in UMRA.
Previous CBO estimate: On November 5, 1999, CBO transmitted
an cost estimate for S. 964, a bill to provide for equitable
compensation for the Cheyenne River Sioux Tribe, and for other
purposes, as ordered reported by the Senate Committee on Indian
Affairs on October 13, 1999, and subsequently amended on
October 27, 1999. The two versions of the legislation are
nearly identical. Differences in our cost estimates for these
versions of the legislation reflect changes in CBO's projection
of interest rates.
Estimate prepared by: Federal Costs: Lanette Keith. Impact
on State, local, and Tribal Governments: Marjorie Miller.
Impact on the Private Sector: Lauren Marks.
Estimate approved by: Peter H. Fontaine, Deputy Assistant
Director for Budget Analysis.
COMPLIANCE WITH PUBLIC LAW 104-4
This bill contains no unfunded mandates.
PREEMPTION OF STATE, LOCAL OR TRIBAL LAW
This bill is not intended to preempt any State, local or
tribal law.
CHANGES IN EXISTING LAW
If enacted, this bill would make no changes in existing
law.