39–010

Calendar No. 795

108TH CONGRESS REPORT " SENATE ! 2d Session 108–404

A BILL TO ESTABLISH A NATIVE AMERICAN-OWNED FINANCIAL ENTITY 

TO PROVIDE FINANCIAL SERVICES TO INDIAN TRIBES, NATIVE AMERICAN ORGANIZATIONS, AND NATIVE AMERICANS, AND FOR OTHER PURPOSES 

NOVEMBER 10, 2004.—Ordered to be printed

Filed, under authority of the order of the Senate of October 11, 2004

Mr. CAMPBELL, from the Committee on Indian Affairs, 

submitted the following 

R E P O R T 

[To accompany S. 519] 

The Committee on Indian Affairs, to which was referred the bill 

(S. 519) to establish a Native American-owned financial entity to 

provide financial services to Indian tribes, Native American organizations, and Native Americans, and for other purposes, having considered the same, reports favorably thereon with an amendment in 

the nature of a substitute and recommends that the bill (as amended) do pass. 

PURPOSE

The purpose of S. 519, as introduced, is to establish a Congressionally-chartered corporation under the jurisdiction of the U.S. Department of Housing and Urban Development that would be capitalized and owned by tribal shareholders, the Department of Hawaiian Homelands, Alaska Native Corporations and other entities 

that wish to invest in the corporation. 

BACKGROUND

Despite a national unemployment rate of 5.4%, the jobless rate 

in Native American communities hovers around 50%, with some Indian economies experiencing unemployment rates near 80%. These 

rates are nearly twice that of the national unemployment rate in 

the Great Depression of the 1930’s. Despite some recent successes 

with casino gaming, energy ventures, and other business opportuVerDate jul 14 2003 21:49 Nov 12, 2004 Jkt 039010 PO 00000 Frm 00001 Fmt 6659 Sfmt 6602 E:\HR\OC\SR404.XXX SR404
2

1See Report of the General Accounting Office: Relationship to EDA Grants and Self Determination Contracting is Mixed, September 2004, GAO–04–847; see also Report of the General 

Accounting Office: Economic Development, Federal Assistance Programs for American Indians 

and Alaska Natives, December 2001, GAO–02–193. 2See FY1995–FY2005 Interior Appropriations Legislation for recent trends in economic spending for Indian Country. 3See Report of the General Accounting Office: Native American Housing: Home-ownership opportunities on Trust Lands Are Limited, February 24, 1998, GAO/FCED–98–49; see also The 

Report of the Native American Lending Study, Community Development Financial Institutions 

Fund, November 2001. 4See the Indian Financing Act of 1974, 25 U.S.C. 1451 et. seq., as amended. 

nities, many tribes still suffer a severe lack of jobs and high unemployment, intense poverty and a lack of physical infrastructure. 

In addition to the litany of unmet needs in Native communities, 

there is a severe lack of economic information and analyses of economic conditions in tribal economies. 

With existing Federal assistance uncoordinated, fragmented and 

spread thinly, Indian tribes have difficulty obtaining sufficient 

funds to undertake meaningful development efforts.1

Further, the current budget constraints limits prospects for 

major increases in assistance funding in the foreseeable future.2

It is also well-documented that native entrepreneurs and communities lack access to capital for both home mortgages and commercial purposes.3 While existing Federal programs such as the Indian 

Loan Guaranty Program 4 provide business loan guarantees to Native entrepreneurs, these programs do little to assist tribes in identifying inhibitors to growth and conversely to attract and retain 

private sector investment and business activity. 

As such, there is a need for a new Indian economic development 

paradigm as well as creative sources of economic analysis, capital, 

and technical expertise to spur growth and development in Native 

communities. 

FEDERALLY-CHARTERED CORPORATION

As introduced, S. 519 would establish the Native American Capital Development Corporation (NACDC), a Congressionally-chartered corporation under the jurisdiction of the U.S. Department of 

Housing and Urban Development (HUD). The NACDC would be 

capitalized and owned by Indian tribal shareholders, the Department of Hawaiian Homelands, Alaska Native Corporations and 

other entities that wish to invest in the corporation. 

The primary mission of the Corporation would be to provide financing, including loan guarantees, to member tribes for infrastructure and commercial ventures and project financing, including 

loan syndications, for majority Native-owned businesses. 

It should be made clear that S. 519 does not propose a retail or 

commercial bank, but rather a new entity designed to supplement 

and assist the efforts of commercial banks now serving Native communities. 

DEVELOPMENT AND DIAGNOSTIC FUNDS

As introduced, S. 519 would have established two initiatives 

aimed at stimulating investment and economic development in Native economies: 

3

(1) The ‘‘Native American Economies Diagnostic Studies 

Fund’’ to assist tribes in identifying inhibitors to economic 

growth and job creation; and 

(2) The ‘‘Native American Incubation Center Fund’’ to provide capital and technical support to tribal governments to 

identify and make feasible opportunities and activities designed to bring investment, growth and job creation. 

THE SUBSTITUTE AMENDMENT

For nearly ten years the Committee has conducted formal hearings and informal discussions related to the concept and mechanics 

of establishing a Tribally-Owned Development Corporation, as envisioned in S. 519. Since 1995 when the Native American Financial 

Services Organization Act (S. 436) was first introduced in the Senate, formal and informal discussions have failed to resolve a number of key issues including, but not limited to, capitalization, choice 

and methods of incorporation, the ownership structure of the Corporation and the lending activities of such a Corporation. 

Accordingly, rather than formally establishing such a Corporation, a substitute amendment was developed to direct a study be 

undertaken to determine the feasibility of forming an Indian tribal 

development corporation and the results of that study be reported 

back to Congress within 9 months. 

The substitute amendment also directs the Native Business Development Office (NABDO) within the Department of Commerce to 

undertake the study in conjunction with the Study Group. The 

NABDO was established in 2000 within the office of the Secretary 

of Commerce by the Native American Business Development, 

Trade Promotion, and Tourism Act, Pub. L. 106–464, which, in 

turn, was enacted to bring greater focus and resources to the problems surrounding economic development in Native communities. 

SUMMARY OF SUBSTITUTE TO S. 519 

The substitute amendment launches a feasibility study to determine whether a Tribally-Owned Development Corporation should 

be undertaken in future legislation. A section-by-section description 

of the changes contained in the substitute amendment follows. 

Section 1. Short Title. 

This Act may be cited as the ‘‘Indian Tribal Development Corporation Feasibility Study Act of 2004’’. 

Section 2. Feasibility Study. 

Section 2 amends the Native American Business Development, 

Trade Promotion, and Tourism Act (25 U.S.C. 4303(b)) by inserting 

a new section (6) entitled the ‘‘Tribal Development Corporation 

Feasibility Study’’. 

The Secretary of Commerce is directed to establish the ‘‘Tribal 

Development Corporation Feasibility Study Group’’ to consist of 12 

members from Indian Tribes, Alaska Natives, Native Hawaiians, a 

representative from the private sector and an official from the Department of the Treasury. 

Within 270 days after enactment of this Act, the Study Group is 

responsible for conducting a study on the feasibility of establishing 

4

an Indian Tribal Development Corporation. The study will be submitted to the Senate Committees on Indian Affairs, Appropriations, 

and the House Committees on Resources and Appropriations. 

The Study will discuss the financial feasibility of establishing a 

corporation and whether that corporation would have a positive 

economic impact on Native American reservation communities. 

The Study will contain a discussion and determination of the 

best alternatives in the structure, organization, and lending terms 

and conditions of the Corporation, including the most appropriate 

structure of capital contributions to best serve, and be acceptable 

to, Native interests. The discussion should also determine the basic 

terms and conditions under which funding would be provided to 

member Indian tribes. 

The Study should identify tribal, Federal, or State policies and 

legal and regulatory conditions and infrastructure deficiencies that 

impede investment, both private and public, needed to promote economic development and to provide recommendations for remedial 

actions that can be undertaken by an Indian tribe to overcome such 

inhibitors of investment. 

Finally, the Study shall determine the capital structure of the 

Corporation and the financial instruments needed to ensure its success. The Study Group will disband 120 days after the Group submits its report to Congress. 

LEGISLATIVE HISTORY

The Native American Capital Formation and Economic Development Act of 2003 (S. 519) was introduced on March 5, 2003, by 

Senator Campbell and was referred to the Committee on Indian Affairs. Hearings were held on the bill on April 30, 2003 and on July 

21, 2004. On September 29, 2004, the Committee convened a business meeting to consider S. 519 and other measures that had been 

referred to it, and on that date, the Committee favorably reported 

a substitute amendment to S. 519. 

COMMITTEE RECOMMENDATION AND TABULATION OF VOTE

On September 29, 2004, the Committee on Indian Affairs, in an 

open business session, adopted an amendment in the nature of a 

substitute to S. 519 by voice vote and ordered the bill, as amended, 

reported favorably to the Senate. 

COST AND BUDGETARY CONSIDERATION

The cost estimate for S. 519 as calculated by the Congressional 

Budget Office, is set forth below:

S. 519—Indian Tribal Development Corporation Feasibility Study 

Act of 2004 

Summary: S. 519 would direct the Department of Commerce to 

establish the Tribal Development Corporation Feasibility Study 

Group. CBO estimates that implementing this legislation would 

cost $5 million over the 2005–2009 period, assuming appropriation 

of the specified amounts. 

Enacting the bill would not affect direct spending or revenues. S. 

519 contains no intergovernmental or private-sector mandates as 

5

defined in the Unfunded Mandates Reform Act (UMRA) and would 

impose no costs on state, local, or tribal governments. 

Estimated cost to the Federal Government: The estimated budgetary impact of S. 1438 is shown in the following table. The costs 

of this legislation fall within budget function 450 (community and 

regional development).

By fiscal year, in millions of dollars— 

2005 2006 2007 2008 2009 

CHANGES IN SPENDING SUBJECT TO APPROPRIATION

Authorization Level ........................................................................................ 3 2 0 0 0

Estimated Outlays ......................................................................................... 3 2 0 0 0

Basis of estimate: For this estimate, CBO assumes that the bill 

will be enacted near the beginning of fiscal year 2005, that specified amounts will be appropriated for each year, and that outlays 

will occur at historical rates for similar programs. 

S. 519 would amend the Native American Business Development, 

Trade Promotion, and Tourism Act of 2000 to authorize the appropriation of $3 million in 2005 and $2 million in 2006 for the Tribal 

Development Corporation Feasibility Study Group. That group 

would be composed of 12 members from varied Indian interests, the 

private sector, and the federal government. The group would examine various aspects of a potential Indian Tribal Development Corporation and report on those efforts within 270 days following enactment of the bill. The group would dissolve within 120 days after 

completing a report. 

Intergovernmental and private-sector impact: S. 519 contains no 

intergovernmental or private-sector mandates as defined in UMRA 

and would impose no costs on state, local, or tribal governments. 

Estimate prepared by: Federal Costs: Mike Waters; Impact on 

State, Local, and Tribal Governments: Marjorie Miller; Impact on 

the Private Sector: Karen Raupp. 

Estimate approved by: Peter H. Fontaine, Deputy Assistant Director for Budget Analysis. 

REGULATORY IMPACT STATEMENT

Paragraph 11(b) of rule XXVI of the Standing Rules of the Senate requires that each report accompanying a bill to evaluate the 

regulatory paperwork and impact that would be incurred in implementing the legislation. The Committee has concluded that enactment of S. 519 will create only de minimis regulatory or paperwork 

burdens. 

EXECUTIVE COMMUNICATIONS

The Committee has received no official communication from the 

Administration on the provisions of the bill. 

CHANGES IN EXISTING LAW

In compliance with subsection 12 of rule XXVI of the Standing 

Rules of the Senate, the Committee states that the enactment of 

S. 519 will result in the following changes in 25 U.S.C. Sec. 4303(b) 

et seq., with existing language which is to be deleted in black 

brackets and the new language to be added in italic:

6

(b) DUTIES OF THE SECRETARY.— 

(1) IN GENERAL.—The Secretary, acting through the Director, 

shall ensure the coordination of Federal programs that provide 

assistance, including financial and technical assistance, to eligible entities for increased business, the expansion of trade by 

eligible entities, and economic development on Indian lands. 

(2) The Secretary, acting through the Director, shall coordinate Federal programs relating to Indian economic development, including any such program of the Department of the Interior, the Small Business Administration, the Department of 

Labor, or any other Federal agency charged with the Indian 

economic development responsibilities. 

(3) In carrying out the duties described in paragraph (1), the 

Secretary, acting through the Director, shall ensure the coordination of, or, as appropriate, carry out— 

(A) Federal programs designed to provide legal, accounting, or financial assistance to eligible entities; 

(B) market surveys; 

(C) the development of promotional materials; 

(D) the financing of business development seminars; 

(E) the facilitation of marketing; 

(F) the participation of appropriate Federal agencies or 

eligible entities in trade fairs; 

(G) any activity that is not described in subparagraphs 

(A) through (F) that is related to the development of appropriate markets; and 

(H) any other activity that the Secretary, in consultation 

with the Director, determines to be appropriate to carry 

out this section. 

(4) In conjunction with the activities described in paragraph 

(3), the Secretary, acting through the Director, shall provide— 

(A) financial assistance, technical assistance, and administrative services to eligible entities to assist those entities 

with— 

(i) identifying and taking advantage of business development opportunities; and 

(ii) compliance with appropriate laws and regulatory 

practices; and 

(B) such other assistance as the Secretary, in consultation with the Director, determines to be necessary for the 

development of business opportunities for eligible entities 

to enhance the economics of Indian tribes. 

(5) PRIORITIES.—In carrying out the duties and activities described in paragraphs (3) and (4), the Secretary, acting through 

the Director, shall give priority to activities that— 

(A) provide the greatest degree of economic benefits to 

Indians; and 

(B) foster long-term stable economies of Indian tribes.

(6) TRIBAL DEVELOPMENT CORPORATION FEASIBILITY.— 

(A) IN GENERAL.—The Secretary shall establish the Tribal Development Corporation Feasibility Study Group (referred to in this paragraph as the ‘‘Group’’). 

(B) MEMBERS.—The Group shall be comprised of 12 

members, as follows: 

7

(i) REPRESENTATIVES OF INDIAN TRIBES.—Five members of the Group shall be representatives of federally 

recognized Indian tribes. 

(ii) REPRESENTATIVES OF THE ALASKA NATIVE COM- MUNITY.—Three members of the Group shall be representatives of the Alaska Native Community. 

(iii) REPRESENTATIVE OF THE NATIVE HAWAIIAN COM- MUNITY.—One member of the Group shall be a representative of the Native Hawaiian Community. 

(iv) REPRESENTATIVE OF THE PRIVATE SECTOR.—Two 

members of the Group shall be representatives of nongovernmental economic activities carried out by private 

enterprises in the private sector. 

(v) FEDERAL OFFICIALS.—One member of the Group 

shall be a representative of the Department of Treasury 

with demonstrated experience in international economic development and international financial institutions. 

(C) CHAIRPERSON.—The members of the Group shall select a Chairperson 

(D) PERSONNEL AND SERVICES.— (i) IN GENERAL.—The Chairperson of the Group may 

appoint and terminate such personnel as are necessary 

to enable the Group to perform its duties. 

(ii) PROCUREMENT OF SERVICES.—The Chairperson 

may procure such services as are necessary to enable 

the Group to perform the duties of the Group. 

(E) STUDY.— (i) IN GENERAL.—Not later than 270 days after the 

date of enactment of this subparagraph, the group 

shall— 

(I) conduct a study to determine the feasibility of 

establishing an Indian Tribal Development Corporation (referred to in this subparagraph as the 

‘‘Corporation’’); and 

(II) submit to the Committee on Indian Affairs 

and the Committee on Appropriations of the Senate and the Committee on Resources and the Committee on Appropriations of the House of Representatives a report that describes the results of 

the study and any recommendations of the Group 

for further legislative action.

(ii) CONTENTS.—The report shall contain—

(I) a discussion and determination of the financial feasibility of the Corporation, including 

whether the Corporation can be, over the long 

term, financially self-sustainable; 

(II) a discussion and determination of the probable economic impact of the Corporation, including 

a demonstration of the quantitative and qualitative economic impact on Native American communities; 

(III) a discussion and determination of the best 

alternatives in the structure, organization, and 

lending terms and conditions of the Corporation, 

8 

including the most appropriate structure of capital 

contributions to best serve, and be acceptable to, 

Native interests; 

(IV) a discussion and determination of the basic 

terms and conditions under which funding would 

be provided to member Indian tribes; 

(V) a discussion of nonfinancial and advisory activities to be undertaken by the Corporation, including the use of diagnostic studies by the Corporation to— 

(aa) identify tribal, Federal, or State policies 

and legal and regulatory conditions and infrastructure deficiencies that impede investment, 

both private and public, needed to promote 

economic development; 

(bb) the financial instruments that will be 

required by the Corporation to ensure its success. 

(F) TERMINATION OF STUDY GROUP.—The Group shall 

terminate 120 days after the date on which the Group submits the report under subparagraph (E). 

(G) AUTHORIZATION OF APPROPRIATIONS.—There are authorized to be appropriated to carry out this paragraph— 

(i) $3,000,000 for fiscal year 2005; and 

(ii) $2,000,000 for fiscal year 2006. 

ø(6)¿ (7) PROHIBITION.—The Secretary may not provide 

under this section assistance for any activity related to the operation of a gaming activity on Indian lands pursuant to the 

Indian Gaming Regulatory Act (25 U.S.C. 2710 et. seq.) 

SUPPLEMENTAL MATERIALS

SALISH KOOTENAI COLLEGE, 

Pablo, MT, April 29, 2003. 

Senator BEN NIGHTHORSE CAMPBELL, 

Committee on Indian Affairs, 

Hart Senate Office Building, Washington, DC. 

HONORABLE SENATOR NIGHTHORSE CAMPBELL: This letter is to 

support S 519 Native American Capital Formation and Economic 

Development Act of 2003. I am writing to request your help and 

support, especially for Tribal Business Information Centers. 

We sincerely appreciate your consideration of supporting S 519. 

We know there is a budgetary pressure in Washington however, if 

you are willing to support S 519 we will provide you with whatever 

information and assistance you need, on a timely basis. 

Thank you Senator and we invite you to Salish Kootenai College 

to see our Tribal Business Information Center. If you or your staff 

should have any questions about our Tribal Business Information 

Center or request of support, please do not hesitate to call me at 

(406) 275–4959. 

Yours truly, 

JOE MCDONALD, 

President. 

9

UNITED SIOUX TRIBES OF SOUTH DAKOTA, Pierre, SD, September 3, 2004. 

Re Support of S. 519. 

Hon. BEN NIGHTHORSE CAMPBELL, 

U.S. Senate, 

Washington, DC. 

DEAR MR. CHAIRMAN: On behalf of the United Sioux Tribes of 

South Dakota, North Dakota, and Nebraska, we write in general 

support of S. 519, which would establish an Indian-owned financial 

entity to provide a variety of services to Indian organizations, 

tribes and individual Indians. We are willing to endorse this legislation because we understand that the corporate structure of this 

entity is designed to guarantee majority Indian ownership. While 

we also feel that this might not be enough to guarantee total ‘‘buyin’’ from Indian country immediately, we believe that it has tremendous potential to begin to fill the current overwhelming need 

for capital and technical assistance that frustrates economic development within reservation communities. 

In particular we endorse the ‘‘Native American Economies Diagnostic Studies Fund,’’ which would support investment policy reforms, facilitate diagnostic studies of reservation economies, and 

allow financial and other data to be collected nationwide throughout Indian country. While many different Federal agencies have 

collected data and issued reports on this problem, a centralized 

clearinghouse for such data is sorely needed, as is a centralized 

and accessible location for technical assistance and support. Although the legislation does not include this kind of detail, we would 

recommend that through this fund, websites and materials are developed that would make it easier for intertribal organizations, 

tribes, and Indian individuals to evaluate and utilize the economic 

development resources provided by many different Federal agencies 

today, sometimes with very little coordination. 

We also support establishment of the ‘‘Native American Economic Incubation Center Fund.’’ We believe that nation building 

goes hand in hand with true and lasting economic success, and this 

fund is designed to both reward and facilitate this process. 

We understand that legislation is always a work in progress and 

can be amended as conditions and ideas about what is workable 

change. Overall, we support the bill as a significant step in the 

right direction, and we thank you for your continued dedication to 

promoting healthy economies in Indian country. 

Sincerely, 

CHAIRMAN MICHAEL B. JANDREAU, UST Board of Directors.

10


Insert graphic folio 19 SR404.001
11


Insert graphic folio 20 SR404.002
12


Insert graphic folio 21 SR404.003
13


Insert graphic folio 22 SR404.004
14


Insert graphic folio 23 SR404.005
15


Insert graphic folio 24 SR404.006
16


Insert graphic folio 25 SR404.007
17


Insert graphic folio 26 SR404.008
18


Insert graphic folio 27 SR404.009
19


Insert graphic folio 28 SR404.010
20


Insert graphic folio 29 SR404.011
21


Insert graphic folio 30 SR404.012
22


Insert graphic folio 31 SR404.013
23


Insert graphic folio 32 SR404.014
24


Insert graphic folio 33 SR404.015
25


Insert graphic folio 34 SR404.016
26


Insert graphic folio 35 SR404.017
27


Insert graphic folio 36 SR404.018
28


Insert graphic folio 37 SR404.019
29


Insert graphic folio 38 SR404.020
30


Insert graphic folio 39 SR404.021
31


Insert graphic folio 40 SR404.022
32


Insert graphic folio 41 SR404.023
33


Insert graphic folio 42 SR404.024
34


Insert graphic folio 43 SR404.025
35


Insert graphic folio 44 SR404.026
36


Insert graphic folio 45 SR404.027
37


Insert graphic folio 46 SR404.028
38


Insert graphic folio 47 SR404.029
39


Insert graphic folio 48 SR404.030
40


Insert graphic folio 49 SR404.031
41


Insert graphic folio 50 SR404.032
42


Insert graphic folio 51 SR404.033
43


Insert graphic folio 52 SR404.034
44


Insert graphic folio 53 SR404.035
45


Insert graphic folio 54 SR404.036
46


Insert graphic folio 55 SR404.037
47


Insert graphic folio 56 SR404.038
48


Insert graphic folio 57 SR404.039
49


Insert graphic folio 58 SR404.040
50


Insert graphic folio 59 SR404.041
51


Insert graphic folio 60 SR404.042
52


Insert graphic folio 61 SR404.043
53


Insert graphic folio 62 SR404.044
54


Insert graphic folio 63 SR404.045
55


Insert graphic folio 64 SR404.046
56


Insert graphic folio 65 SR404.047
57


Insert graphic folio 66 SR404.048
58


Insert graphic folio 67 SR404.049
59


Insert graphic folio 68 SR404.050
60


Insert graphic folio 69 SR404.051
61


Insert graphic folio 70 SR404.052
62


Insert graphic folio 71 SR404.053
63


Insert graphic folio 72 SR404.054
64


Insert graphic folio 73 SR404.055
65


Insert graphic folio 74 SR404.056
66


Insert graphic folio 75 SR404.057
67


Insert graphic folio 76 SR404.058
68


Insert graphic folio 77 SR404.059
69


Insert graphic folio 78 SR404.060
70


Insert graphic folio 79 SR404.061
71


Insert graphic folio 80 SR404.062
72


Insert graphic folio 81 SR404.063
73


Insert graphic folio 82 SR404.064
74


Insert graphic folio 83 SR404.065
75


Insert graphic folio 84 SR404.066
76


Insert graphic folio 85 SR404.067
77


Insert graphic folio 86 SR404.068
78


Insert graphic folio 87 SR404.069
79


Insert graphic folio 88 SR404.070
80


Insert graphic folio 89 SR404.071
81


Insert graphic folio 90 SR404.072
82


Insert graphic folio 91 SR404.073
83


Insert graphic folio 92 SR404.074
84


Insert graphic folio 93 SR404.075
85


Insert graphic folio 94 SR404.076
86


Insert graphic folio 95 SR404.077
87


Insert graphic folio 96 SR404.078
88


Insert graphic folio 97 SR404.079
89


Insert graphic folio 98 SR404.080
90


Insert graphic folio 99 SR404.081
91


Insert graphic folio 100 SR404.082
92


Insert graphic folio 101 SR404.083
93


Insert graphic folio 102 SR404.084
94


Insert graphic folio 103 SR404.085
95


Insert graphic folio 104 SR404.086
96


Insert graphic folio 105 SR404.087
97


Insert graphic folio 106 SR404.088
98


Insert graphic folio 107 SR404.089
99


Insert graphic folio 108 SR404.090
100


Insert graphic folio 109 SR404.091
101


Insert graphic folio 110 SR404.092
102


Insert graphic folio 111 SR404.093
103


Insert graphic folio 112 SR404.094
104


Insert graphic folio 113 SR404.095
105


Insert graphic folio 114 SR404.096
106


Insert graphic folio 115 SR404.097
107


Insert graphic folio 116 SR404.098
108


Insert graphic folio 117 SR404.099
109


Insert graphic folio 118 SR404.100
110


Insert graphic folio 119 SR404.101
111


Insert graphic folio 120 SR404.102
112

SOUTHERN UTE INDIAN TRIBAL COUNCIL, Ignacio, CO, September 30, 2004. 

Re S. 519. 

Hon. BEN NIGHTHORSE CAMPBELL, 

U.S. Senate, 

Committee on Indian Affairs, 

Washington, DC. 

DEAR CHAIRMAN CAMPBELL: I am writing in response to your request of September 9, 2004, to answer questions regarding S. 519. 

Before outlining my thoughts on the issues raised in your letter, I 

would like to thank you for giving the Southern Ute Indian Tribe 

an opportunity to provide input on this legislation. 

The Southern Ute Indian Tribe (Tribe) is a recognized leader of 

economic development in Indian Country as a result of sound planning and implementation of its financial plans. As such, the Tribe 

has faced and dealt with many of the problems described in S. 

519’s proposed findings. The Tribe agrees that cooperative efforts, 

calling upon, the strengths of the federal, local and tribal governments, as well as the financial backing of the private sector, are 

needed to help Indian Country achieve sustainable progress and 

success in economic development. 

The Tribe is not currently involved in any cooperative agreements for economic development with other Indian tribes. A tribal 

development corporation, as contemplated by S. 519, could provide 

the opportunity to develop such partnership, fostering cooperation 

that could help tribes share successful economic development strategies and ideas. A tribal development corporation could serve as an 

extension of the national Indian community and provide a forum 

for Indian leaders to access their counterparts, with the goal of creating the associations necessary to spur economic development 

throughout Indian country. 

A tribal development corporation could also help the Tribe’s economic development plans in the same fashion. Despite the ongoing 

success of this Tribe, many tribal members, like all other Indian 

people, still face unemployment, poor health, substandard housing 

and the social ills associated with these problems. Regardless of 

this Tribe’s economic success, a tribal development corporation 

would assist the Tribe in addressing the types of economic development that can, over the long term, sustain the growth that the 

Tribe has already enjoyed. The Tribe’s economic development and 

diversification plans would be buoyed by the potential for help from 

a broad range of sources, all centered within the auspices of the development corporation created by S. 519. 

A large part of the Southern Ute Indian Tribe’s success story has 

been the insistence, by tribal leaders and tribal members, that each 

tribal venture is thoroughly investigated, planned and executed. 

Such diligent preparation and planning requires that the Tribe 

gather the best and most accurate data available. For example, 

when the Tribe considered the prospect of opening a gaming facility 

on the Reservation, a wide-ranging study regarding the potential 

impacts of such an operation was performed. The Tribe moved forward with its plans only after the study showed that a casino 

would have overwhelmingly positive impacts on the Reservation 

economy and tribal employment. The Tribe would therefore look 

113

forward to accessing detailed information regarding both economic 

development opportunities and the forecasted results of any such 

development that would be available through the tribal economic 

development corporation proposed by S. 519. 

Another factor that continues to contribute to the economic 

progress of the Tribe is the predictability afforded to outside investors by the Tribe’s legal codes and Tribal Court. The Enforcement 

of Secured Transactions Code, for example, was initially adopted by 

the Tribe in 1980 and has since been revised twice to provide for 

more effective implementation and application of the Code. Many 

other titles of the Southern Ute Indian Tribal Code address business issues within the Reservation, such as the Employment Rights 

Code (Title 17), the Severance Tax Code (Title 21), the Excavation 

Code (Title 22), the Sales Tax Ordinance and Ordinance No. 86–

01 for the Regulation of Oil and Gas Development Activities. With 

tribal business codes like these, and the assurance of a well-established, stable and competent Tribal Court, outside investors and 

businesses are encouraged to participate in the Tribe’s economic 

growth and development. While S. 519 will play a significant role 

in assisting other tribes in their development of similar codes, it is 

important to remember that the most effective tribal codes are 

those that are organic to the tribal community that they protect. 

Thus, while technical expertise and business acumen will become 

available to tribes through S. 519, each tribe would still need to 

independently draft and implement effective business and financial 

codes tailored to their particular tribal environment. 

As for the concepts contained in Title VI of S. 519, Indian Country has seen what may prove to be a catastrophic decline in federal 

appropriations for the Indian Health Service and other programs 

aimed at the well being of Native America. The Tribe hopes that 

the appropriations called for in Title VI of S. 519 will actually meet 

the needs of Native American financial institutions, but, in the current national economic and political climate, this hope may not be 

entirely realistic. Nonetheless, the spirit of Title VI is positive and 

Section 601 of S. 519 emphasizes the importance of financial assistance to Native American financial institutions. The Tribe would 

like to see the spirit of Title VI translate into concrete federal financial assistance for Indian economic development. 

In closing, let me again emphasize the Southern Ute Indian 

Tribe’s view that this legislation will provide important economic 

development opportunities for all tribes. These opportunities will 

become increasingly critical to the continued successful, self sustained development of Indian Country, especially in light of the 

current state of diminished federal funding. If properly implemented, the provisions of S. 519 will fulfill another aspect of the 

federal government’s ongoing trust responsibility and provide a 

much-needed jump-start for economic development in Indian Country, and we appreciate the opportunity to provide our comments. 

Sincerely, 

HOWARD D. RICHARDS, Sr., 

Chairman, Southern Ute Indian Tribe.

114

FORT BELKNAP INDIAN COMMUNITY, Harlem, MT, April 29, 2003. 

Hon. BEN NIGHTHORSE CAMPBELL, 

Russell Senate Office Building, 

Washington, DC. 

DEAR SENATOR NIGHTHORSE CAMPBELL: The Fort Belknap Indian 

Community Council supports your efforts to include Tribal Business Information Centers in the amendments of S. 519, The Native 

American Capital Formation and Economic Development Act of 

2003. 

Since Fort Belknap TBIC’s inception in 1995, twenty-four (24) 

new small businesses have started. These new businesses have created 29 full-time jobs and 3 part-time jobs. This is a monumental 

endeavor on our reservation, where the unemployment rate has 

averaged from 65% to 71% over the past twenty years. 

The Fort Belknap TBIC encourages and assists community members in developing their entrepreneurship skills that lead to individual independence and promotes community economic development. From fall 1999 to fall 2002, the center has offered 63 classes/

workshops, with 434 participants taking advantage of the specialized entrepreneurial training. 

Major accomplishments of Fort Belknap Tribal Business Information Center are: • Produced award winning business plans (1999 & 2000); • Received the ‘‘Best Practices Award’’ from H.U.D. for its 

business incubator (May 2001); • Developed a Uniform Commercial Code (2001); • Formed a Financial Institution Planning Committee to establish a Credit Union Branch on Fort Belknap (2001–2002); • Established a partnership with Rural Development and Finance Initiative to establish a micro loan fund; • Completed a reservation-wide Educational Needs Assessment (2001–2002); • Planned and implemented an Arts & Crafts Fair and Cultural Food Demonstration (July 2001 and 2002); and • Assisted two communities on the Fort Belknap Indian Reservation on the process of how to form their own Community 

Development Corporations. IRS 501  (3) applications have 

been filed (2002). 

There are nearly 20 TBICs operating in the nation and we are 

independently seeking funding on a continual basis to underwrite 

administrative and operating expenses, special projects and technical assistance for low-income American Indian entrepreneurs. Financial resources in both the public and private sectors are decreasing for communities that suffer chronic poverty conditions. 

The downturn in the stock market has dramatically changed the 

amount of charitable contributions available from foundations and 

the federal government budget cuts in rural economic development 

have been reduced as well. 

On behalf of Fort Belknap College-TBIC and Fort Belknap Indian Community, we appreciate and support your efforts in obtaining an appropriation that would guarantee a line item funding for 

Tribal Business Information Centers. The TBICs play a major role 

in the revitalization of our economies on the isolated Indian reservations. 

115 

If there are any questions, please do not hesitate to call me at 

(406) 353–8303. 

Sincerely, 

BEN SPEAKTHUNDER, 

President, Fort Belknap Indian Community Council. 

FORT BELKNAP COLLEGE, Harlem, MT, April 29, 2003. 

Hon. BEN NIGHTHORSE CAMPBELL, 

Russell Senate Office Building, 

Washington, DC. 

DEAR SENATOR NIGHTHORSE CAMPBELL: The Fort Belknap Tribal 

Business Information Center supports your efforts to include Tribal 

Business Information Centers in the amendments of S. 519, The 

Native American Capital Formation and Economic Development 

Act of 2003. 

Tribal Business Information Centers were created to address the 

unique conditions encountered by reservation-based American Indian businesses and to serve tribal communities in their efforts to 

create, develop and expand small businesses. TBICs provide culturally tailored business development assistance to potential and 

current small business owners. 

Since Fort Belknap TBIC’s inception in 1995, twenty-four (24) 

new small businesses have started. These new businesses have created 29 full-time jobs and 3 part-time jobs. This is a monumental 

endeavor on our reservation, where the unemployment rate has 

averaged from 65% to 71% over the past twenty years. 

The Fort Belknap TBIC encourages and assists community members in developing their entrepreneurship skills that lead to individual independence and promotes community economic development. From fall 1999 to fall 2002, the center has offered 63 classes/ 

workshops, with 434 participants taking advantage of the specialized entrepreneurial training. 

Major accomplishments of Fort Belknap Tribal Business Information Center are: 

• Produced award winning business plans (1999 & 2000); 

• Received the ‘‘Best Practices Award’’ from H.U.D. for its 

business incubator (May 2001); 

• Developed a Uniform Commercial Code (2001); 

• Formed a Financial Institution Planning Committee to establish a Credit Union Branch on Fort Belknap (2001–2002); 

• Established a partnership with Rural Development and Finance Initiative to establish a micro loan fund; 

• Completed a reservation-wide Educational Needs Assessment (2001–2002); 

• Planned and implemented an Arts & Crafts Fair and Cultural Food Demonstration (July 2001 and 2002); and 

• Assisted two communities on the Fort Belknap Indian Reservation on the process of how to form their own Community 

Development Corporations. IRS 501  (3) applications have 

been filed (2002). 

On behalf of Fort Belknap Tribal Business Information Center, 

we support your efforts in obtaining an appropriation that would 

guarantee a line item funding for Tribal Business Information CenVerDate Aug 04 2004 23:20 Nov 12, 2004 Jkt 039010 PO 00000 Frm 00115 Fmt 6659 Sfmt 6602 E:\HR\OC\SR404.XXX SR404
116 

ters. The TBICs play a major role in the revitalization of our economies on the isolated Indian reservations. 

If there are any questions, please do not hesitate to call me at 

(406) 353–4672. 

Sincerely, 

MILDRED KINSEY, Director, Fort Belknap Tribal Business Information Center. 

Æ