Mississippi Sioux Tribes Judgment Fund Distribution Act of 1996

Summary: Mississippi Sioux Tribes Judgement Fund Distribution Act of 1996 - Provides for distribution to, and use of certain funds by, the Sisseton and Wahpeton Tribes of Sioux Indians. 
(Sec. 4) Directs the Secretary of the Interior, one year after enactment of this Act, to distribute specified amounts to the tribal governing body of the:  (1) Devils Lake Sioux Tribe of North Dakota; (2) Sisseton and Wahpeton Sioux Tribe of South Dakota; and (3) Assiniboine and Sioux Tribes of the Fort Peck Reservation in Montana. Designates the Sisseton and Wahpeton Sioux Council of the Assiniboine and Sioux Tribes as the tribal governing body of the Assiniboine and Sioux Tribes of the Fort Peck Reservation. 
(Sec. 5) Directs each tribal governing body, as a condition for receiving the distributed funds, to establish a tribal trust fund for the benefit of the covered Indian tribe under its jurisdiction. Requires that each tribal governing body shall:  (1) serve as the trustee of the trust fund; and (2) administer the trust fund. 
(Sec. 6) Prohibits funds distributed to a covered Indian tribe from being used to make per capita payments to members of the covered Indian tribe. 
Allows funds distributed to be used by a tribal governing body only for the purpose of making investments or expenditures that the tribal governing body determines to be related to:  (1) economic development that is beneficial to the covered Indian tribe; (2) the development of resources of the covered Indian tribe; or (3) the development of a program that is beneficial to members of the covered Indian tribe, including educational and social welfare programs. 
Directs the Secretary to conduct an annual audit. 
(Sec. 7) Sets forth provisions concerning the effect of payments to a covered Indian tribe or an individual on eligibility for, or the reduction or denial of, Federal benefits.  Prohibits subjecting a payment made to a covered Indian tribe or individual under this Act to Federal or State income tax. 
(Sec. 8) Directs the Secretary, not later than one year after enactment, to distribute a specified amount to the lineal descendants of the Sisseton and Wahpeton Tribes of Sioux Indians.

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Mississippi Sioux Tribes Judgment 
Fund Distribution Act of 1996''.

SEC. 2. DEFINITIONS.

    For purposes of this Act, the following definitions shall apply:
            (1) Covered indian tribe.--The term ``covered Indian 
        tribe'' means an Indian tribe listed in section 4(a).
            (2) Secretary.--The term ``Secretary'' means the Secretary 
        of the Interior.
            (3) Tribal governing body.--The term ``tribal governing 
        body'' means the duly elected governing body of a covered 
        Indian tribe.

SEC. 3. DISTRIBUTION TO, AND USE OF CERTAIN FUNDS BY, THE SISSETON AND 
              WAHPETON TRIBES OF SIOUX INDIANS.

    Notwithstanding any other provision of law, including Public Law 
92-555 (25 U.S.C. 1300d et seq.), any funds made available by 
appropriations under Public Law 90-352 to the Sisseton and Wahpeton 
Tribes of Sioux Indians to pay a judgment in favor of the Tribes in 
Indian Claims Commission dockets numbered 142 and 359, including 
interest, after payment of attorney fees and other expenses, that, as 
of the date of enactment of this Act, have not been distributed, shall 
be distributed and used in accordance with this Act.

SEC. 4. DISTRIBUTION OF FUNDS TO TRIBES.

    (a) In General.--Subject to section 5, as soon as practicable after 
the date that is 1 year after the date of enactment of this Act, the 
Secretary shall distribute an aggregate amount, equal to the funds 
described in section 3 reduced by $1,469,831.50, as follows:
            (1) 28.9276 percent of such amount shall be distributed to 
        the tribal governing body of the Devils Lake Sioux Tribe of 
        North Dakota.
            (2) 57.3145 percent of such amount shall be distributed to 
        the tribal governing body of the Sisseton and Wahpeton Sioux 
        Tribe of South Dakota.
            (3) 13.7579 percent of such amount shall be distributed to 
        the tribal governing body of the Assiniboine and Sioux Tribes 
        of the Fort Peck Reservation in Montana, as designated under 
        subsection (b).
    (b) Tribal Governing Body of Assiniboine and Sioux Tribes of Fort 
Peck Reservation.--For purposes of making distributions of funds 
pursuant to this Act, the Sisseton and Wahpeton Sioux Council of the 
Assiniboine and Sioux Tribes shall act as the governing body of the 
Assiniboine and Sioux Tribes of the Fort Peck Reservation.

SEC. 5. ESTABLISHMENT OF TRIBAL TRUST FUNDS.

    (a) In General.--As a condition to receiving funds distributed 
under section 4, each tribal governing body referred to in section 4(a) 
shall establish a trust fund for the benefit of the covered Indian 
tribe under the jurisdiction of that tribal governing body, consisting 
of--
            (1) amounts deposited into the trust fund; and
            (2) any interest that accrues from investments made from 
        amounts deposited into the trust fund.
    (b) Trustee.--Each tribal governing body that establishes a trust 
fund under this section shall--
            (1) serve as the trustee of the trust fund; and
            (2) administer the trust fund in accordance with section 6.

SEC. 6. USE OF DISTRIBUTED FUNDS.

    (a) Prohibition.--No funds distributed to a covered Indian tribe 
under section 4 may be used to make per capita payments to members of 
the covered Indian tribe.
    (b) Purposes.--The funds distributed under section 4 may be used by 
a tribal governing body referred to in section 4(a) only for the 
purpose of making investments or expenditures that the tribal governing 
body determines to be reasonably related to--
            (1) economic development that is beneficial to the covered 
        Indian tribe;
            (2) the development of resources of the covered Indian 
        tribe; or
            (3) the development of a program that is beneficial to 
        members of the covered Indian tribe, including educational and 
        social welfare programs.
    (c) Audits.--
            (1) In general.--The Secretary shall conduct an annual 
        audit to determine whether each tribal governing body referred 
        to in section 4(a) is managing the trust fund established by 
        the tribal governing body under section 5 in accordance with 
        the requirements of this section.
            (2) Action by the secretary.--
                    (A) In general.--If, on the basis of an audit 
                conducted under paragraph (1), the Secretary determines 
                that a covered Indian tribe is not managing the trust 
                fund established by the tribal governing body under 
                section 5 in accordance with the requirements of this 
                section, the Secretary shall require the covered Indian 
                tribe to take remedial action to achieve compliance.
                    (B) Appointment of independent trustee.--If, after 
                a reasonable period of time specified by the Secretary, 
                a covered Indian tribe does not take remedial action 
                under subparagraph (A), the Secretary, in consultation 
                with the tribal governing body of the covered Indian 
                tribe, shall appoint an independent trustee to manage 
                the trust fund established by the tribal governing body 
                under section 5.

SEC. 7. EFFECT OF PAYMENTS TO COVERED INDIAN TRIBES ON BENEFITS.

    (a) In General.--A payment made to a covered Indian tribe or an 
individual under this Act shall not--
            (1) for purposes of determining the eligibility for a 
        Federal service or program of a covered Indian tribe, 
        household, or individual, be treated as income or resources; or
            (2) otherwise result in the reduction or denial of any 
        service or program to which, pursuant to Federal law (including 
        the Social Security Act (42 U.S.C. 301 et seq.)), the covered 
        Indian tribe, household, or individual would otherwise be 
        entitled.
    (b) Tax Treatment.--A payment made to a covered Indian tribe or 
individual under this Act shall not be subject to any Federal or State 
income tax.

SEC. 8. DISTRIBUTION OF FUNDS TO LINEAL DESCENDANTS.

    Not later than 1 year after the date of enactment of this Act, of 
the funds described in section 3, the Secretary shall, in the manner 
prescribed in section 202(c) of Public Law 92-555 (25 U.S.C. 1300d-
4(c)), distribute an amount equal to $1,469,831.50 to the lineal 
descendants of the Sisseton and Wahpeton Tribes of Sioux Indians.