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                                                       Calendar No. 787
108th CONGRESS
  2d Session
                                S. 1438

                          [Report No. 108-397]

 To provide for equitable compensation of the Spokane Tribe of Indians 
    of the Spokane Reservation in settlement of claims of the Tribe 
     concerning the contribution of the Tribe to the production of 
      hydropower by the Grand Coulee Dam, and for other purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                July 22 (legislative day, July 21), 2003

Ms. Cantwell (for herself, Mr. Inouye, and Mrs. Murray) introduced the 
 following bill; which was read twice and referred to the Committee on 
                             Indian Affairs

                            October 8, 2004

  Reported by Mr. Campbell, with an amendment and an amendment to the 
                                 title
 [Strike out all after the enacting clause and insert the part printed 
                               in italic]

_______________________________________________________________________

                                 A BILL


 
 To provide for equitable compensation of the Spokane Tribe of Indians 
    of the Spokane Reservation in settlement of claims of the Tribe 
     concerning the contribution of the Tribe to the production of 
      hydropower by the Grand Coulee Dam, and for other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

<DELETED>SECTION 1. SHORT TITLE.</DELETED>

<DELETED>    This Act may be cited as the ``Spokane Tribe of Indians of 
the Spokane Reservation Grand Coulee Dam Equitable Compensation 
Settlement Act''.</DELETED>

<DELETED>SEC. 2. FINDINGS.</DELETED>

<DELETED>    Congress finds the following:</DELETED>
        <DELETED>    (1) From 1927 to 1931, at the direction of 
        Congress, the Corps of Engineers investigated the Columbia 
        River and its tributaries to determine sites at which power 
        could be produced at low cost.</DELETED>
        <DELETED>    (2) The Corps of Engineers--</DELETED>
                <DELETED>    (A) identified a number of sites, 
                including the site at which the Grand Coulee Dam is 
                located; and</DELETED>
                <DELETED>    (B) recommended that power development at 
                those sites be performed by local governmental 
                authorities or private utilities under the Federal 
                Power Act (16 U.S.C. 791a et seq.).</DELETED>
        <DELETED>    (3) Under section 10(e) of that Act (16 U.S.C. 
        803(e)), a licensee is required to compensate an Indian tribe 
        for the use of land under the jurisdiction of the Indian 
        tribe.</DELETED>
        <DELETED>    (4) In August 1933, the Columbia Basin Commission, 
        an agency of the State of Washington, received a preliminary 
        permit from the Federal Power Commission for water power 
        development at the Grand Coulee site.</DELETED>
        <DELETED>    (5) In the mid-1930's, the Federal Government, 
        which is not subject to the Federal Power Act (16 U.S.C. 791a 
        et seq.)--</DELETED>
                <DELETED>    (A) federalized the Grand Coulee Dam 
                project; and</DELETED>
                <DELETED>    (B) began construction of the Grand Coulee 
                Dam.</DELETED>
        <DELETED>    (6) At the time at which the Grand Coulee Dam 
        project was federalized, the Federal Government recognized that 
        the Spokane Tribe and the Confederated Tribes of the Colville 
        Reservation had compensable interests in the Grand Coulee Dam 
        project, including compensation for--</DELETED>
                <DELETED>    (A) the development of 
                hydropower;</DELETED>
                <DELETED>    (B) the extinguishment of a salmon fishery 
                on which the Spokane Tribe was almost completely 
                financially dependent; and</DELETED>
                <DELETED>    (C) the inundation of land with loss of 
                potential power sites previously identified by the 
                Spokane Tribe.</DELETED>
        <DELETED>    (7) In the Act of June 29, 1940, Congress--
        </DELETED>
                <DELETED>    (A) in the first section (16 U.S.C. 835d) 
                granted to the United States--</DELETED>
                        <DELETED>    (i) all rights of Indian tribes in 
                        land of the Spokane Tribe and Colville Indian 
                        Reservations that were required for the Grand 
                        Coulee Dam project; and</DELETED>
                        <DELETED>    (ii) various rights-of-way over 
                        other land under the jurisdiction of Indian 
                        tribes that were required in connection with 
                        the project; and</DELETED>
                <DELETED>    (B) in section 2 (16 U.S.C. 835e) provided 
                that compensation for the land and rights-of-way was to 
                be determined by the Secretary of the Interior in such 
                amounts as the Secretary determined to be just and 
                equitable.</DELETED>
        <DELETED>    (8) In furtherance of that Act, the Secretary of 
        the Interior paid--</DELETED>
                <DELETED>    (A) to the Spokane Tribe, $4,700; 
                and</DELETED>
                <DELETED>    (B) to the Confederated Tribes of the 
                Colville Reservation, $63,000.</DELETED>
        <DELETED>    (9) In 1994, following 43 years of litigation 
        before the Indian Claims Commission, the United States Court of 
        Federal Claims, and the United States Court of Appeals for the 
        Federal Circuit, Congress ratified an agreement between the 
        Confederated Tribes of the Colville Reservation and the United 
        States that provided for damages and annual payments of 
        $15,250,000 in perpetuity, adjusted annually, based on revenues 
        from the sale of electric power from the Grand Coulee Dam 
        project and transmission of that power by the Bonneville Power 
        Administration.</DELETED>
        <DELETED>    (10) In legal opinions issued by the Office of the 
        Solicitor of the Department of the Interior, a Task Force Study 
        conducted from 1976 to 1980 ordered by the Committee on 
        Appropriations of the Senate, and hearings before Congress at 
        the time at which the Confederated Tribes of the Colville 
        Reservation Grand Coulee Dam Settlement Act (Public Law 103-
        436; 108 Stat. 4577) was enacted, it has repeatedly been 
        recognized that--</DELETED>
                <DELETED>    (A) the Spokane Tribe suffered damages 
                similar to those suffered by, and had a case legally 
                comparable to that of, the Confederated Tribes of the 
                Colville Reservation; but</DELETED>
                <DELETED>    (B) the 5-year statute of limitations 
                under the Act of August 13, 1946 (25 U.S.C. 70 et seq.) 
                precluded the Spokane Tribe from bringing a civil 
                action for damages under that Act.</DELETED>
        <DELETED>    (11) The inability of the Spokane Tribe to bring a 
        civil action before the Indian Claims Commission can be 
        attributed to a combination of factors, including--</DELETED>
                <DELETED>    (A) the failure of the Bureau of Indian 
                Affairs to carry out its advisory responsibilities in 
                accordance with that Act; and</DELETED>
                <DELETED>    (B) an attempt by the Commissioner of 
                Indian Affairs to impose improper requirements on 
                claims attorneys retained by Indian tribes, which 
                caused delays in retention of counsel and full 
                investigation of the potential claims of the Spokane 
                Tribe.</DELETED>
        <DELETED>    (12) As a consequence of construction of the Grand 
        Coulee Dam project, the Spokane Tribe--</DELETED>
                <DELETED>    (A) has suffered the loss of--</DELETED>
                        <DELETED>    (i) the salmon fishery on which 
                        the Spokane Tribe was dependent;</DELETED>
                        <DELETED>    (ii) identified hydropower sites 
                        that the Spokane Tribe could have developed; 
                        and</DELETED>
                        <DELETED>    (iii) hydropower revenues that the 
                        Spokane Tribe would have received under the 
                        Federal Power Act (16 U.S.C. 791a et seq.) had 
                        the project not been federalized; and</DELETED>
                <DELETED>    (B) continues to lose hydropower revenues 
                that the Federal Government recognized were owed to the 
                Spokane Tribe at the time at which the project was 
                constructed.</DELETED>
        <DELETED>    (13) More than 39 percent of the land owned by 
        Indian tribes or members of Indian tribes that was used for the 
        Grand Coulee Dam project was land of the Spokane 
        Tribe.</DELETED>

<DELETED>SEC. 3. STATEMENT OF PURPOSE.</DELETED>

<DELETED>    The purpose of this Act is to provide fair and equitable 
compensation to the Spokane Tribe, using the same proportional basis as 
was used in providing compensation to the Confederated Tribes of the 
Colville Reservation, for the losses suffered as a result of the 
construction and operation of the Grand Coulee Dam project.</DELETED>

<DELETED>SEC. 4. DEFINITIONS.</DELETED>

<DELETED>    In this Act:</DELETED>
        <DELETED>    (1) Secretary.--The term ``Secretary'' means the 
        Secretary of the Treasury.</DELETED>
        <DELETED>    (2) Confederated tribes act.--The term 
        ``Confederated Tribes Act'' means the Confederated Tribes of 
        the Colville Reservation Grand Coulee Dam Settlement Act 
        (Public Law 103-436; 108 Stat. 4577).</DELETED>
        <DELETED>    (3) Fund account.--The term ``Fund Account'' means 
        the Spokane Tribe of Indians Settlement Fund Account 
        established under section 5(a).</DELETED>
        <DELETED>    (4) Spokane tribe.--The term ``Spokane Tribe'' 
        means the Spokane Tribe of Indians of the Spokane Reservation, 
        Washington.</DELETED>

<DELETED>SEC. 5. SETTLEMENT FUND ACCOUNT.</DELETED>

<DELETED>    (a) Establishment of Account.--There is established in the 
Treasury an interest-bearing account to be known as the ``Spokane Tribe 
of Indians Settlement Fund Account''.</DELETED>
<DELETED>    (b) Deposit of Amounts.--</DELETED>
        <DELETED>    (1) Initial deposit.--On the date on which funds 
        are made available to carry out this Act, the Secretary shall 
        deposit in the Fund Account, as payment and satisfaction of the 
        claim of the Spokane Tribe for use of land of the Spokane Tribe 
        for generation of hydropower for the period beginning on June 
        29, 1940, and ending on November 2, 1994, an amount that is 
        equal to 39.4 percent of the amount paid to the Confederated 
        Tribes of the Colville Reservation under section 5(a) of the 
        Confederated Tribes Act, adjusted to reflect the change, during 
        the period beginning on the date on which the payment described 
        in subparagraph (A) was made to the Confederated Tribes of the 
        Colville Reservation and ending on the date of enactment of 
        this Act, in the Consumer Price Index for all urban consumers 
        published by the Department of Labor.</DELETED>
        <DELETED>    (2) Subsequent deposits.--On September 30 of the 
        first fiscal year that begins after the date of enactment of 
        this Act, and on September 30 of each of the 5 fiscal years 
        thereafter, the Secretary shall deposit in the Fund Account an 
        amount that is equal to 7.88 percent of the amount authorized 
        to be paid to the Confederated Tribes of the Colville 
        Reservation under section 5(b) of the Confederated Tribes Act 
        through the end of the fiscal year during which this Act is 
        enacted, adjusted to reflect the change, during the period 
        beginning on the date on which the payment to the Confederated 
        Tribes of the Colville Reservation was first made and ending on 
        the date of enactment of this Act, in the Consumer Price Index 
        for all urban consumers published by the Department of 
        Labor.</DELETED>
<DELETED>    (c) Annual Payments.--On September 1 of the first fiscal 
year after the date of enactment of this Act, and annually thereafter, 
the Secretary shall pay to the Spokane Tribe an amount that is equal to 
39.4 percent of the annual payment authorized to be paid to the 
Confederated Tribes of the Colville Reservation under section 5(b) for 
the Confederated Tribes Act for the fiscal year.</DELETED>

<DELETED>SEC. 6. USE AND TREATMENT OF SETTLEMENT FUNDS.</DELETED>

<DELETED>    (a) Transfer of Funds to Spokane Tribe.--</DELETED>
        <DELETED>    (1) Initial transfer.--Not later than 60 days 
        after the date on which the Secretary receives from the Spokane 
        Business Council written notice of the adoption by the Spokane 
        Business Council of a resolution requesting that the Secretary 
        execute the transfer of settlement funds described in section 
        5(a), the Secretary shall transfer all or a portion of the 
settlement funds, as appropriate, to the Spokane Business 
Council.</DELETED>
        <DELETED>    (2) Subsequent transfers.--If not all funds 
        described in section 5(a) are transferred to the Spokane 
        Business Council under an initial transfer request described in 
        paragraph (1), the Spokane Business Council may make subsequent 
        requests for, and the Secretary of the Treasury may execute 
        subsequent transfers of, those funds.</DELETED>
<DELETED>    (b) Use of Initial Payment Funds.--Of the settlement funds 
described in subsections (a) and (b) of section 5--</DELETED>
        <DELETED>    (1) 25 percent shall be--</DELETED>
                <DELETED>    (A) reserved by the Spokane Business 
                Council; and</DELETED>
                <DELETED>    (B) used for discretionary purposes of 
                general benefit to all members of the Spokane Tribe; 
                and</DELETED>
        <DELETED>    (2) 75 percent shall be used by the Spokane 
        Business Council to carry out--</DELETED>
                <DELETED>    (A) a resource development 
                program;</DELETED>
                <DELETED>    (B) a credit program;</DELETED>
                <DELETED>    (C) a scholarship program; or</DELETED>
                <DELETED>    (D) a reserve, investment, and economic 
                development program.</DELETED>
<DELETED>    (c) Use of Annual Payment Funds.--Annual payments made to 
the Spokane Tribe under section 5(c) may be used or invested by the 
Spokane Tribe in the same manner and for the same purposes as other 
tribal governmental funds.</DELETED>
<DELETED>    (d) Approval by Secretary.--Notwithstanding any other 
provision of law--</DELETED>
        <DELETED>    (1) the approval of the Secretary of the Treasury 
        or the Secretary of the Interior for any payment, distribution, 
        or use of the principal, interest, or income generated by any 
        settlement funds transferred or paid to the Spokane Tribe under 
        this Act shall not be required; and</DELETED>
        <DELETED>    (2) the Secretary of the Treasury and the 
        Secretary of the Interior shall have no trust responsibility 
        for the investment, supervision, administration, or expenditure 
        of those funds after the date on which the funds are 
        transferred to or paid to the Spokane Tribe.</DELETED>
<DELETED>    (e) Treatment of Funds for Certain Purposes.--The payments 
and distributions of any portion of the principal, interest, and income 
generated by the settlement funds described in section 5 shall be 
treated in the same manner as payments or distributions under section 6 

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