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[House Report 110-273]
[From the U.S. Government Publishing Office]

110th Congress                                                   Report
                        HOUSE OF REPRESENTATIVES
 1st Session                                                    110-273

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TO DIRECT THE SECRETARY OF THE INTERIOR TO PROCLAIM AS RESERVATION FOR 
THE BENEFIT OF THE SAULT STE. MARIE TRIBE OF CHIPPEWA INDIANS A PARCEL 
  OF LAND NOW HELD IN TRUST BY THE UNITED STATES FOR THAT INDIAN TRIBE

                                _______
                                

 July 30, 2007.--Committed to the Committee of the Whole House on the 
              State of the Union and ordered to be printed

                                _______
                                

  Mr. Rahall, from the Committee on Natural Resources, submitted the 
                               following

                              R E P O R T

                        [To accompany H.R. 2120]

      [Including cost estimate of the Congressional Budget Office]

  The Committee on Natural Resources, to whom was referred the 
bill (H.R. 2120) to direct the Secretary of the Interior to 
proclaim as reservation for the benefit of the Sault Ste. Marie 
Tribe of Chippewa Indians a parcel of land now held in trust by 
the United States for that Indian tribe, having considered the 
same, report favorably thereon with an amendment and recommend 
that the bill as amended do pass.

  The amendment is as follows:
  Strike all after the enacting clause and insert the 
following:

SECTION 1. LAND TO BE PROCLAIMED RESERVATION.

  (a) In General.--Notwithstanding any other provision of law, the 
Secretary of the Interior shall proclaim as reservation for the benefit 
of the Sault Ste. Marie Tribe of Chippewa Indians the parcel of land 
now held in trust by the United States and having the legal description 
as follows: That portion of Section 19, Township 41 North, Range 3 
West, Michigan Meridian, described as: All of the NW1/4SW1/4 and all of 
the S1/2SW1/4 Northerly of a line described as beginning 650 feet 
Northerly along the centerline of Highway ``Mackinac Trail'' from the 
intersection of said centerline with the South Section line of Section 
19, Township 41 North, Range 3 West, thence Northeasterly to the 
Southeast corner of the NW1/4SW1/4 of said Section, containing 65 
acres, more or less (except the highway right-of-way and easements of 
record).
  (b) Applicable Law; Effective Date.--The Secretary's proclamation 
shall be pursuant to section 7 of the Act of June 18, 1934 (25 U.S.C. 
467) and the property shall be deemed a reservation as of April 19, 
1988, for purposes of the Indian Gaming Regulatory Act.

                          PURPOSE OF THE BILL

    The purpose of H.R. 2120 is to direct the Secretary of the 
Interior to proclaim as reservation for the benefit of the 
Sault Ste. Marie Tribe of Chippewa Indians a parcel of land now 
held in trust by the United States for that Indian tribe.

                  BACKGROUND AND NEED FOR LEGISLATION

    In 1983, 65 acres of land located in St. Ignace, Michigan 
(1983 Parcel) were placed into trust by the United States on 
behalf of the Sault Ste. Marie Tribe. These lands are within 
the Tribe's historic, aboriginal homeland and are approximately 
47 miles from other reservation lands. Shortly after the lands 
were placed into trust, the Tribe requested that the Bureau of 
Indian Affairs (BIA) declare these lands to be part of the 
Tribe's existing reservation. No action was taken on this 
request. Similar requests were made by the Tribe in 1986 and 
1988. After the final request in 1988, the Acting 
Superintendent notified the local governments that the 
Reservation Proclamation was impending.
    Because the Tribe did not receive a copy of the Reservation 
Proclamation impending in 1988, the Tribe renewed its request 
in November, 1990. This time, the Assistant Secretary for 
Indian Affairs notified the Tribe that additional information 
was needed to process the Tribe's application and that once the 
BIA received the information, it would ``process the necessary 
documents for the proclamation.'' The requested information was 
provided to the BIA Area Director, who later forwarded it to 
the BIA Central Office. On June 22, 1992, the BIA 
Superintendent sent a letter to the Tribe regarding the status 
of various lands, including the 1983 Parcel, that the Tribe 
holds ``in both trust and reservation status.''

Indian Gaming Regulatory Act (25 U.S.C. 2701 et seq.)

    In 1986, the Tribe opened the Kewadin Shores Casino on the 
1983 Parcel and began conducting gaming. Congress enacted the 
Indian Gaming Regulatory Act (IGRA) in 1988, which authorizes 
tribes to conduct gaming on lands placed into trust prior to 
October 17, 1988. The IGRA prohibits gaming on lands acquired 
after November 17, 1988 unless such lands are located 
contiguous to existing reservation land. Because the 1983 
Parcel was placed into trust prior to that date, the Tribe 
lawfully continued its gaming activities. A Tribal-State gaming 
compact was signed in 1993 permitting the Tribe to operate 
Class III gaming under the IGRA.

2000 Parcel

    In 2000, 77 acres of land (2000 Parcel) adjacent to the 
1983 Parcel were placed into trust by the United States on 
behalf of the Tribe. Because the gaming facility located on the 
1983 Parcel is no longer suitable for continued use because of 
environmental and other concerns, the Tribe decided to build a 
new facility on the 2000 Parcel. The Tribe asked the United 
States in 2003 for concurrence that the 2000 Parcel is ``Indian 
land'' under the IGRA and that the Tribe could conduct gaming 
on it. In the Spring of 2004, the Tribe commenced construction 
of a new gaming facility on the 2000 Parcel. This new facility 
is approximately 200 feet from the original facility and will 
feature no more gaming space than the original facility. A few 
months after construction commenced, the National Indian Gaming 
Commission requested additional information, which the Tribe 
provided on July 1, 2004.
    In February, 2006, the Department of the Interior 
(Department) issued an opinion stating that the 2000 Parcel is 
not ``Indian land'' under the IGRA because the 1983 Parcel had 
not been proclaimed to be part of the Tribe's Reservation by 
October, 1988. Because the 1992 Superintendent's letter 
concerned several parcels of land, the Department interprets 
the letter as only meaning that some of the parcels are in 
reservation status. They note that the 1992 Superintendent's 
letter did not specifically say that the 1983 Parcel was part 
of the Reservation.

Present situation

    Because of the Department's opinion, the Tribe is using a 
temporary facility for the gaming facility that is located 
entirely on the 1983 Parcel and the hotel and entertainment 
venue is located in the facility constructed on the 2000 
Parcel. Unless the land is declared part of the Reservation, 
the tribe will be forced to tear down existing Indian housing 
on the 1983 Parcel that is currently occupied by tribal 
members. This bill has the support of the City of St. Ignace, 
Michigan.

                            COMMITTEE ACTION

    H.R. 2120 was introduced on May 2, 2007 by Representative 
Stupak (D-MI). The bill was referred to the Committee on 
Natural Resources. On June 13, 2007, the full Natural Resources 
Committee held a hearing on this bill, at which the Department 
of the Interior testified in support of the measure with a 
recommended change. On July 18, 2007, the full Committee met to 
consider the bill. Chairman Rahall (D-WV) offered an amendment, 
as recommended by the Department, to clarify the date that the 
land would become part of the Tribe's reservation for purposes 
of the Indian Gaming Regulatory Act. It was adopted by 
unanimous consent. The bill, as amended, was then ordered 
favorably reported to the House of Representatives by unanimous 
consent.

                      SECTION-BY-SECTION ANALYSIS

Section 1. Land to be proclaimed reservation

    Section 1 directs the Secretary of the Interior to proclaim 
certain land currently held in trust by the United States for 
the benefit of the Sault Ste. Marie Tribe of Chippewa Indians 
as part of Tribe's reservation. The Secretary's proclamation 
shall be pursuant to the Act of June 18, 1934 and the property 
shall be deemed a reservation as of April 19, 1988 for purpose 
of the Indian Gaming Regulatory Act.

            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 Natural 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, spending 
authority, credit authority, or an increase or decrease in 
revenues or tax expenditures.
    3. General Performance Goals and Objectives. This bill does 
not authorize funding and therefore, clause 3(c)(4) of rule 
XIII of the Rules of the House of Representatives does not 
apply.
    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:

H.R. 2120--A bill to direct the Secretary of the Interior to proclaim 
        as reservation for the benefit of the Sault Ste. Marie Tribe of 
        Chippewa Indians a parcel of land now held in trust by the 
        United States for that Indian tribe

    H.R. 2120 would direct the Secretary of the Interior to 
proclaim as reservation a parcel of land now held in trust by 
the United States for the benefit of the Sault Ste. Marie Tribe 
of Chippewa Indians. Under the bill, the land would be 
designated as reservation primarily for gaming activities. 
Based on information from the Bureau of Indian Affairs, CBO 
estimates that implementing this bill would have no significant 
effect on the federal budget.
    H.R. 2863 contains no intergovernmental or private-sector 
mandates as defined in the Unfunded Mandates Reform Act and 
would impose no costs on state, local, or tribal governments.
    The staff contact for this estimate is Leigh Angres. The 
estimate was approved by Peter H. Fontaine, Deputy Assistant 
Director for Budget Analysis.

                    COMPLIANCE WITH PUBLIC LAW 104-4

    This bill contains no unfunded mandates.

                           EARMARK STATEMENT

    H.R. 2120 does not contain any congressional earmarks, 
limited tax benefits, or limited tariff benefits as defined in 
clause 9(d), 9(e) or 9(f) of rule XXI.

                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.

                                  
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