69–005 

110TH CONGRESS REPT. 110–541 " ! HOUSE OF REPRESENTATIVES 2d Session Part 1 

TO PROVIDE FOR AND APPROVE THE SETTLEMENT OF 

CERTAIN LAND CLAIMS OF THE BAY MILLS INDIAN 

COMMUNITY 

MARCH 6, 2008.—Ordered to be printed 

Mr. RAHALL, from the Committee on Natural Resources, 

submitted the following 

R E P O R T 

together with 

DISSENTING VIEWS 

[To accompany H.R. 2176] 

[Including cost estimate of the Congressional Budget Office] 

The Committee on Natural Resources, to whom was referred the 

bill (H.R. 2176) to provide for and approve the settlement of certain 

land claims of the Bay Mills Indian Community, 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. DEFINITIONS. 

For the purposes of this Act, the following definitions apply: 

(1) ALTERNATIVE LANDS.—The term ‘‘alternative lands’’ means those lands 

identified as alternative lands in the Settlement of Land Claim. 

(2) CHARLOTTE BEACH LANDS.—The term ‘‘Charlotte Beach lands’’ means those 

lands in the Charlotte Beach area of Michigan and described as follows: Government Lots 1, 2, 3, and 4 of Section 7, T45N, R2E, and Lot 1 of Section 18, T45N, 

R2E, Chippewa County, State of Michigan. 

(3) COMMUNITY.—The term ‘‘Community’’ means the Bay Mills Indian Community, a federally recognized Indian tribe. 

(4) SETTLEMENT OF LAND CLAIM.—The term ‘‘Settlement of Land Claim’’ 

means the agreement between the Community and the Governor of the State 

of Michigan executed on August 23, 2002, and filed with the Office of Secretary 

of State of the State of Michigan, including the document titled ‘‘Addendum to 

Settlement of Land Claim’’, executed by the parties on November 13, 2007. 


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(5) SECRETARY.—The term ‘‘Secretary’’ means the Secretary of the Interior. 

SEC. 2. ACCEPTANCE OF ALTERNATIVE LANDS AND EXTINGUISHMENT OF CLAIMS. 

(a) LAND INTO TRUST; PART OF RESERVATION.—

(1) LAND INTO TRUST.—The Secretary shall take the alternative lands into 

trust for the benefit of the Community not later than 30 days after both of the 

following have occurred: 

(A) The Secretary has received a title insurance policy for the alternative 

lands that shows that the alternative lands are not subject to mortgages, 

liens, deeds of trust, options to purchase, or other security interests. 

(B) The Secretary has confirmed that the National Environmental Policy 

Act of 1969 has been complied with regarding the trust acquisition of the 

property. 

(2) PART OF RESERVATION.—The alternative lands shall become part of the 

Community’s reservation immediately upon attaining trust status. 

(b) GAMING.—The alternative lands shall be taken into trust as provided in this 

section as part of the settlement and extinguishment of the Community’s Charlotte 

Beach land claims, and so shall be deemed lands obtained in settlement of a land 

claim within the meaning of section 20(b)(1)(B)(i) of the Indian Gaming Regulatory 

Act (25 U.S.C. 2719; Public Law 100–497). 

(c) EXTINGUISHMENT OF CLAIMS.—Concurrent with the Secretary taking the alternative lands into trust under subsection (a), any and all claims by the Community 

to the Charlotte Beach lands or against the United States, the State of Michigan 

or any subdivision thereof, the Governor of the State of Michigan, or any other person or entity by the Community based on or relating to claims to the Charlotte 

Beach lands (including without limitation, claims for trespass damages, use, or occupancy), whether based on aboriginal or recognized title, are hereby extinguished. 

The extinguishment of these claims is in consideration for the benefits to the Community under this Act. 

SEC. 3. EFFECTUATION AND RATIFICATION OF AGREEMENT. 

(a) RATIFICATION.—The United States approves and ratifies the Settlement of 

Land Claim, except that the last sentence in section 10 of the Settlement of Land 

Claim is hereby deleted. 

(b) NOT PRECEDENT.—The provisions contained in the Settlement of Land Claim 

are unique and shall not be considered precedent for any future agreement between 

any tribe and State. 

(c) ENFORCEMENT.—The Settlement of Land Claim shall be enforceable by either 

the Community or the Governor according to its terms. Exclusive jurisdiction over 

any enforcement action is vested in the United States District Court for the Western 

District of Michigan. 

PURPOSE OF THE BILL

The purpose of H.R. 2176 is to provide for and approve the settlement of certain land claims of the Bay Mills Indian Community. 

BACKGROUND AND NEED

The Bay Mills Indian Community is a federally recognized Indian tribe, which has adopted a constitution, its name, and form 

of government pursuant to the Indian Reorganization Act. The 

Community currently has approximately 1,500 tribal members. 

The present-day Community’s ancestors lived in semi-autonomous bands of Chippewa Indians on the shores of the Upper Great 

Lakes in what is now Michigan and Ontario. Beginning in the mid–

1600’s the French and British established trading sites in these 

areas to trade with the local Indians. The Community’s ancestors 

signed a peace treaty with the United States in 1795 to end fighting on the U.S. western frontier. 

By 1836, the Chippewa bands had formed personal relationships 

with many European settlers resulting in intermarriage and economic interdependence. Around this time a treaty was signed 

which identified the bands as ‘‘the six bands residing at or near 

Sault Ste. Marie’’. Historians further identified the bands by locaVerDate Aug 31 2005 06:04 Mar 08, 2008 Jkt 069006 PO 00000 Frm 00002 Fmt 6659 Sfmt 6602 E:\HR\OC\HR541P1.XXX HR541P1

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tion as: (1) St. Mary’s River Rapids; (2) Waiskey Bay; (3) 

Tahquamenon River mouth; (4) Whitefish Bay; (5) Garden River 

and Sugar Island; and (6) Hay Lake area of St. Mary’s River, which 

is now known as Charlotte Beach. 

The settlement agreement ratified by this legislation would settle 

the longstanding land claim the Community has to 110 acres in 

Charlotte Beach. These lands were designated for withdrawal from 

the public domain for use by the Ottawa and Chippewa Indians 

pursuant to the 1855 Treaty of Detroit. In 1857, the lands were 

deeded to the Governor to be held in trust for the ancestral bands 

of the Community. Eventually, these lands were illegally sold for 

unpaid taxes without the consent of the United States nor the 

knowledge of the bands. Currently, some 100 non-Indian landowners live on the Charlotte Beach land under a clouded title, unable to acquire insurance and with depressed land values. 

The Bay Mills Indian Community filed suit in 1996 in federal 

court against the current titleholders of the land in Charlotte 

Beach and also filed suit against the State of Michigan in the state 

court of claims. The federal case was dismissed on procedural 

grounds because the suit did not include other parties holding a 

similar claim, meaning the Sault Ste. Marie Tribe of Chippewa Indians. This decision was affirmed on appeal; however, the court did 

find that the Bay Mills Indian Community and the Sault Ste. 

Marie Tribe of Chippewa Indians both trace their ancestry to the 

bands named in the deed when the lands in question were held by 

the state. The state case was dismissed for failure to bring the 

claim within the state’s statute of limitations. 

Congress has the sole authority and responsibility to extinguish 

a land claim brought by an Indian tribe. 

Settlement agreement 

Two Governors of the State of Michigan have signed a settlement 

agreement with the Bay Mills Indian Community. Governor John 

Engler signed a settlement agreement on behalf of the state in August, 2002. Governor Jennifer Granholm signed an addendum to 

that settlement agreement on November 13, 2007. In a letter to the 

Committee on Resources on June 23, 2004, Governor Engler wrote, 

‘‘As Governor of Michigan, it was my duty to negotiate the land settlement agreements between the State of Michigan and Bay Mills 

and the Sault Tribe in 2002.’’ The settlement agreement would: —Relinquish the Bay Mills Indian Community’s claim to the 

lands in Charlotte Beach, Michigan, in return for land to be 

taken into trust in Port Huron, Michigan; —Allow for gaming to be conducted on the Port Huron lands; —Provide a formula through which a percentage of net win 

revenue of electronic games would go to the State and local 

governments including the City of Port Huron, the county, and 

the county school district; —Ratify a restriction limiting to three, the total number of 

casinos the Community could operate in Michigan. 

COMMITTEE ACTION

H.R. 2176 was introduced on May 3, 2007 by Rep. Bart Stupak 

(D–MI) for himself and Rep. Candice Miller (R–MI), and the bill 

was referred to the Committee on Natural Resources. 


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The Committee on Natural Resources held a hearing on the bill 

on February 6, 2008. A markup session was held by the Committee 

on February 13, 2008. Chairman Rahall (D–WV) offered an en bloc 

amendment to ensure compliance with the National Environmental 

Policy Act (NEPA), and to add to the bill the date of the addendum 

to the settlement of land agreement signed by the Bay Mills Indian 

Community and Governor Jennifer Granholm. Further, the en bloc 

amendment clarifies that all claims against the United States, 

State of Michigan, or any other person be extinguished concurrent 

with the Secretary taking land into trust for the Community. 

Chairman Rahall’s en bloc amendment was agreed to by voice vote. 

Rep. Heller (R–NV) offered an amendment to the bill that would 

delete Sec. 2(b) from the bill. Sec. 2(b) designates that lands taken 

into trust pursuant to this legislation would be deemed obtained in 

the settlement of a land claim under the Indian Gaming Regulatory Act (IGRA). Rep. Heller’s amendment failed by a rollcall vote 

of 3 yeas and 16 nays, as follows: 


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Rep. Heller (R–NV) also offered an amendment to the bill to authorize, rather than direct, the Secretary of Interior to take lands 

into trust for the Community. Further, the amendment would delete the provision of the bill which deems the lands taken into trust 

as part of a land settlement under the Indian Gaming Regulatory 

Act. In addition, the amendment would, prior to gaming activities 

commencing, require the Secretary to consult with nearby state, 

local and tribal officials to determine if the land acquisition is in 

the best interest of the Bay Mills Indian Community and the surrounding communities. It would further require the Governor concur with the determination as required in IGRA Sec. 20(b)(1)(A). 

Finally, the amendment would require the Secretary of the Interior 

to give greater scrutiny in reviewing the Secretary’s findings then 

currently required by regulation. Rep. Heller’s amendment failed 

by a rollcall vote of 5 yeas and 19 nays, as follows: 


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The Committee on Natural Resources then ordered H.R. 2176 favorably reported to the House of Representatives, as amended, by 

a rollcall vote of 21 yeas and 5 nays, as follows: 


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SECTION-BY-SECTION ANALYSIS

Section 1. Definitions 

Section 1 provides the definitions of terms used in the bill including ‘‘Alternative Lands,’’ ‘‘Charlotte Beach Lands,’’ ‘‘Community,’’

‘‘Settlement of Land Claim,’’ and ‘‘Secretary.’’

Section 2. Acceptance of alternative lands and extinguishment of 

claims 

Section 2(a) provides direction to the Secretary of the Interior to 

take lands into trust for the Community within 30 days of receiving a title insurance policy proving the lands to be free of mortgages, liens, or other security interests. The specific lands to be 

placed in trust are identified in the Settlement of Land Claim 

Agreement between the Governor of Michigan and the Community. 

Further, this section provides for the lands to be considered part 

of the reservation of the Bay Mills Indian Community. 

Section 2(b) provides the lands taken in trust be deemed as obtained as part of a land settlement within the meaning of section 

20(b)(1)(B)(I) of the Indian Gaming Regulatory Act (25 U.S.C. 

2719). 

Section 2(c) provides that all claims against the United States, 

the State of Michigan, or any other person by the Bay Mills Indian 

Community relating to the Charlotte Beach lands, be extinguished 

concurrent with the Secretary taking land into trust for the Community. 

Section 3. Effectuation and ratification of agreement 

Section 3(a) provides for the ratification of the Settlement of 

Land Claim signed between the State of Michigan and the Bay 

Mills Indian Community on August 23, 2002 as well as the Addendum signed between the parties on November 13, 2007, except for 

the last sentence in section 10 of the 2002 agreement. Section 10 

of the 2002 agreement contains support for a severability clause 

whereby if any portion of the agreement is found to be unconstitutional, the parties intend for the remaining part of the agreement 

to remain in place. Section 10 also holds that no changes made to 

the settlement agreement would be binding without concurrence by 

the Governor and approval of a resolution by the Community. 

Section 3(b) provides that this settlement agreement is not intended to set a precedent. 

Section 3(c) provides the U.S. District Court for the Western District of Michigan with jurisdiction over enforcement of the settlement agreement. 

COMMITTEE OVERSIGHT FINDINGS AND RECOMMENDATIONS

Regarding clause 2(b)(1) of rule X and clause 3(e)(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 1, section 8, clause 3, of the Constitution of the United 

States grants Congress the authority to enact this legislation. 


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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 provision that would increase direct spending. 

3. General Performance Goals and Objectives. As required by 

clause 3(c)(4) of rule XIII, the general performance goal or objective 

of this bill is to provide for the settlement of certain land claims 

of the Bay Mills Indian Community. 

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. 2176—A bill to provide for and approve the settlement of certain land claims of the Bay Mills Indian Community 

H.R. 2176 would ratify an agreement between the state of Michigan and the Bay Mills Indian Community regarding the tribe’s 

claim to land in northern Michigan, known as Charlotte Beach. 

CBO estimates that this bill would have no significant effect on the 

federal budget. 

H.R. 2176 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 agreement that would be ratified by the bill stipulates that 

the tribe relinquish all claims to the Charlotte Beach property and 

that Michigan give the tribe an alternative parcel of land in Port 

Huron, Michigan. The legislation would require the Secretary of 

the Interior to take that land into trust for the tribe and proclaim 

it to be part of the tribe’s reservation, provided that certain conditions are met. According to information from the Bureau of Indian 

Affairs and the tribe, the lands would primarily be used for gaming 

purposes. 

The staff contact for this estimate is Leigh Angres. The estimate 

was approved by Theresa Gullo, Deputy Assistant Director for 

Budget Analysis. 

COMPLIANCE WITH PUBLIC LAW 104–4

This bill contains no unfunded mandates. 

EARMARK STATEMENT

H.R. 2176 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. 


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PREEMPTION OF STATE, LOCAL OR TRIBAL LAW

This bill does not preempt state, local or tribal law. 

CHANGES IN EXISTING LAW

If enacted, this bill would make no changes in existing law. 


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