II 

112TH CONGRESS 

1ST SESSION S. 1293 

To direct the Secretary of Commerce to establish a demonstration program 

to adapt the lessons of providing foreign aid to underdeveloped economies 

to the provision of Federal economic development assistance to certain 

similarly situated individuals, and for other purposes. 

IN THE SENATE OF THE UNITED STATES 

JUNE 29, 2011 

Ms. MURKOWSKI (for herself, Mr. BEGICH, and Mr. AKAKA) introduced the 

following bill; which was read twice and referred to the Committee on Indian Affairs 

A BILL 

To direct the Secretary of Commerce to establish a demonstration program to adapt the lessons of providing 

foreign aid to underdeveloped economies to the provision 

of Federal economic development assistance to certain 

similarly situated individuals, and for other purposes. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Native American Chal5 lenge Demonstration Project Act of 2011’’. 

6 SEC. 2. FINDINGS. 

7 Congress finds that— 


jbell on DSKDVH8Z91PROD with BILLS
2 

•S 1293 IS

1 (1) the efforts of the United States to foster job 

2 creation, community, economic, and business devel3 opment in geographically remote Native American 

4 communities is often hampered by fragmentation of 

5 authority, responsibility, and performance under var6 ious Federal economic development assistance pro7 grams; 

8 (2) the effectiveness of Federal and tribal ef9 forts to generate jobs and employment opportunities 

10 in traditional Native American communities, home 

11 to indigenous people for thousands of years, depends 

12 on better, more flexible, and more cooperative ar13 rangements among the various Federal agencies and 

14 Indian tribes; and 

15 (3) the United States has committed to a policy 

16 of tribal self-governance that— 

17 (A) respects the value of self-determination 

18 of Native people; and 

19 (B) is well-suited to delivery of aid in the 

20 form of compacts that recognize self-governance 

21 yet provide a basis for more effective delivery of 

22 economic development aid. 

23 SEC. 3. PURPOSES. 

24 The purposes of this Act are— 


jbell on DSKDVH8Z91PROD with BILLS
3 

•S 1293 IS

1 (1) to increase opportunities for job creation 

2 and long-term economic development by establishing 

3 a demonstration project designed to adapt the les4 sons of foreign aid to underdeveloped economies, 

5 such as the experience of the Millennium Challenge 

6 Corporation, to the provision of Federal economic 

7 development assistance to similarly situated remote 

8 Native American communities; 

9 (2) to enable Indian tribes and tribal organiza10 tions to use available Federal assistance more effec11 tively and efficiently; 

12 (3) to reduce joblessness in a manner consistent 

13 with the policy of self-determination, including fur14 thering tribal self-governance; and 

15 (4) to demonstrate the manner in which Fed16 eral economic development assistance to certain re17 mote Native American communities may be adminis18 tered effectively in a manner that— 

19 (A) promotes the creation of jobs, eco20 nomic growth, and the elimination of poverty; 

21 (B) strengthens good governance, entrepre22 neurship, and investment in Native American 

23 communities; and 

24 (C) promotes sustainable economic growth 

25 in a manner that promotes self-determination 


jbell on DSKDVH8Z91PROD with BILLS
4 

•S 1293 IS

1 and self-sufficiency among remote Native Amer2 ican communities while preserving the cultural 

3 values of those communities. 

4 SEC. 4. DEFINITIONS. 

5 In this Act: 

6 (1) COMMITMENT TO DEVELOPMENT.—The 

7 term ‘‘commitment to development’’ means a com8 mitment to job creation, poverty reduction, and eco9 nomic growth, as demonstrated through activities 

10 for— 

11 (A) entrepreneurship and job creation; 

12 (B) an increase in worker productivity and 

13 innovation; or 

14 (C) private sector development. 

15 (2) COMPACT.—The term ‘‘compact’’ means a 

16 binding agreement with the United States, with a 

17 term not to exceed 5 years, entered into pursuant to 

18 this Act. 

19 (3) DEMONSTRATION PROJECT.—The term 

20 ‘‘demonstration project’’ means the Native American 

21 Millennium Challenge Demonstration Project estab22 lished under section 5(a). 

23 (4) ECONOMIC DEVELOPMENT STRATEGY.—The 

24 term ‘‘economic development strategy’’ means a 

25 strategy— 


jbell on DSKDVH8Z91PROD with BILLS
5 

•S 1293 IS

1 (A) written by an eligible entity and de2 signed to create jobs, achieve sustainable eco3 nomic growth, and reduce poverty over a de4 fined period; and 

5 (B) developed in consultation with public 

6 and private sector entities, as appropriate to 

7 the geographical area and intended beneficiaries 

8 of the compact. 

9 (5) ELIGIBLE ENTITY.—The term ‘‘eligible enti10 ty’’ means— 

11 (A) an Indian tribe; 

12 (B) a tribal organization; 

13 (C) a consortium of Indian tribes or tribal 

14 organizations; and 

15 (D) after consultation with the Secretary 

16 of the Interior, a Native Hawaiian organization. 

17 (6) INDIAN TRIBE.—The term ‘‘Indian tribe’’ 

18 has the meaning given the term in section 4 of the 

19 Indian Self-Determination and Education Assistance 

20 Act (25 U.S.C. 450b). 

21 (7) SECRETARY.—The term ‘‘Secretary’’ means 

22 the Secretary of Commerce. 

23 (8) TRIBAL ORGANIZATION.—The term ‘‘tribal 

24 organization’’ has the meaning given the term in 


jbell on DSKDVH8Z91PROD with BILLS
6 

•S 1293 IS

1 section 4 of the Indian Self-Determination and Edu2 cation Assistance Act (25 U.S.C. 450b). 

3 SEC. 5. NATIVE AMERICAN MILLENNIUM CHALLENGE DEM4 ONSTRATION PROJECT. 

5 (a) ESTABLISHMENT.—The Secretary shall establish 

6 and implement in the Department of Commerce a dem7 onstration project, to be known as the ‘‘Native American 

8 Millennium Challenge Demonstration Project’’. 

9 (b) LEAD AGENCY.— 

10 (1) IN GENERAL.—The lead agency for carrying 

11 out this Act and the demonstration project shall be 

12 the Department of Commerce. 

13 (2) MEMORANDUM OF UNDERSTANDING.—The 

14 Secretary shall establish a Memorandum of Under15 standing with participating Federal agencies that de16 fines responsibilities under this Act. 

17 (c) FORM OF ASSISTANCE UNDER A COMPACT.—As18 sistance under the demonstration project— 

19 (1) shall be provided in the form of multiyear 

20 funding agreements established under the applicable 

21 compact; 

22 (2) may not be provided in the form of loans; 

23 (3) may not be used for gaming activities cov24 ered by the Indian Gaming Regulatory Act (25 

25 U.S.C. 2701 et seq.); and 


jbell on DSKDVH8Z91PROD with BILLS
7 

•S 1293 IS

1 (4) shall be provided in a manner that author2 izes the eligible entity, the Secretary, and the heads 

3 of other Federal agencies— 

4 (A) to reallocate, reprogram, or modify 

5 budget allocations and amounts for use by the 

6 eligible entity under the terms of the compact; 

7 and 

8 (B) specify the procedures to be used. 

9 (d) COORDINATION.— 

10 (1) IN GENERAL.—To improve the effectiveness 

11 of Federal economic development assistance by en12 couraging the coordination of that assistance in re13 mote Native American communities and except as 

14 specifically prohibited by any other provision of law 

15 (including regulations), the provision of assistance 

16 under this section may be coordinated with Federal 

17 economic development assistance provided for Indian 

18 tribes and members of Indian tribes by— 

19 (A) the Department of Agriculture; 

20 (B) the Department of Commerce; 

21 (C) the Department of Energy; 

22 (D) the Department of Health and Human 

23 Services (other than the Indian Health Service); 

24 (E) the Department of Housing and Urban 

25 Development (excluding any economic assistVerDate Mar 15 2010 00:38 Jun 30, 2011 Jkt 099200 PO 00000 Frm 00007 Fmt 6652 Sfmt 6201 E:\BILLS\S1293.IS S1293

jbell on DSKDVH8Z91PROD with BILLS
8 

•S 1293 IS

1 ance under title I of the Native American 

2 Housing Assistance and Self-Determination Act 

3 of 1996 (25 U.S.C. 4111 et seq.)); 

4 (F) the Department of the Interior; 

5 (G) the Small Business Administration; 

6 and 

7 (H) any other Federal agencies and instru8 mentalities that the Secretary determines to be 

9 appropriate. 

10 (2) INTEGRATED FUNDING.—On execution of a 

11 compact with an eligible entity, the Secretary, in co12 operation with the heads of other Federal agencies 

13 and in accordance with paragraph (1), shall— 

14 (A) provide unified accounting, budgeting, 

15 and auditing standards for all Federal funding 

16 and programs covered by this Act; and 

17 (B) may authorize the eligible entity to co18 ordinate the federally funded economic develop19 ment assistance programs of the eligible entity 

20 in a manner that integrates the program serv21 ices into a single, coordinated program. 

22 (e) PROGRAMS AFFECTED.—The programs that may 

23 be integrated under the demonstration project include any 

24 program— 


jbell on DSKDVH8Z91PROD with BILLS
9 

•S 1293 IS

1 (1) under which an eligible entity is eligible for 

2 receipt of funds under a statutory or administrative 

3 formula for economic development purposes; and 

4 (2) for which there is no specific statutory or 

5 regulatory prohibition preventing agency or depart6 mental participation. 

7 (f) WAIVER AUTHORITY.— 

8 (1) IN GENERAL.—On receipt of an executed 

9 compact, the Secretary shall consult with the eligible 

10 entity that is a party to the compact and the Sec11 retary of each Federal agency that provides funds to 

12 be used to implement the compact to identify any 

13 potentially necessary or advisable waiver of statutory 

14 requirements or applicable regulations, policies, or 

15 procedures necessary to enable the eligible entity to 

16 implement the compact. 

17 (2) WAIVER.—Notwithstanding any other provi18 sion of law, on the request of an eligible entity that 

19 has entered into a compact pursuant to this Act, the 

20 Secretary of each affected agency shall waive any 

21 applicable statutory, regulatory, or administrative 

22 requirement, regulation, policy, or procedure promul23 gated by that agency that has been identified by 

24 participating agencies and eligible entities as impair25 ing the purposes of this Act. 


jbell on DSKDVH8Z91PROD with BILLS
10 

•S 1293 IS

1 (g) MATCHING REQUIREMENTS.—For the purposes 

2 of matching requirements under Federal law, funds pro3 vided under funding agreements entered into pursuant to 

4 this Act, and all funds provided under contracts or grants 

5 made pursuant to this Act, shall be treated as non-Federal 

6 funds. 

7 (h) NO REDUCTION IN AMOUNTS.—In no case shall 

8 the amount of Federal funds available to an eligible entity 

9 involved in any demonstration project be reduced as a re10 sult of the enactment of this Act. 

11 (i) INTERAGENCY TRANSFER OF FUNDS AUTHOR12 IZED.—The Secretary of a participating Federal agency 

13 may take such action as is necessary to provide for an 

14 interagency transfer of funds to further the purposes of 

15 this Act. 

16 SEC. 6. NATIVE AMERICAN CHALLENGE COMPACTS. 

17 (a) NATIVE AMERICAN CHALLENGE COMPACTS.— 

18 (1) PROCEDURES.— 

19 (A) IN GENERAL.—The Secretary shall de20 velop a selection process for proposals for com21 pacts submitted by eligible entities. 

22 (B) SELECTION PROCESS.—On completion 

23 of a selection process, the Secretary shall enter 

24 into such compacts as are selected in accord25 ance with the selection process. 


jbell on DSKDVH8Z91PROD with BILLS
11 

•S 1293 IS

1 (2) APPLICATION PROCESS.— 

2 (A) IN GENERAL.—The Secretary shall de3 velop an application process for eligible entities 

4 to enter into Native American Challenge Com5 pacts under this Act. 

6 (B) APPLICATION PROCESS.— 

7 (i) IN GENERAL.—An eligible entity 

8 shall inform the Secretary of the intent of 

9 the eligible entity to enter into a Native 

10 American Challenge compact by resolution 

11 or other official action by the governing 

12 body of the eligible entity. 

13 (ii) PLANNING PHASE.—Each eligible 

14 entity that seeks to enter into a compact 

15 shall complete a planning phase that in16 cludes— 

17 (I) legal and budgetary research; 

18 (II) organizational preparation; 

19 and 

20 (III) the development of an eco21 nomic development strategy. 

22 (C) CRITERIA FOR THE SELECTION OF EL23 IGIBLE ENTITIES.—In establishing criteria for 

24 the selection of eligible entities under this secVerDate Mar 15 2010 00:38 Jun 30, 2011 Jkt 099200 PO 00000 Frm 00011 Fmt 6652 Sfmt 6201 E:\BILLS\S1293.IS S1293

jbell on DSKDVH8Z91PROD with BILLS
12 

•S 1293 IS

1 tion, the Secretary shall consider whether an el2 igible entity— 

3 (i) has successfully completed the 

4 planning phase described in subparagraph 

5 (B)(ii); 

6 (ii) has demonstrated financial sta7 bility and financial management capacity 

8 as evidenced by the eligible entity having 

9 no material audit exceptions for the 3 fis10 cal years preceding the fiscal year for 

11 which the requested participation is being 

12 made; and 

13 (iii) has a plan to demonstrate ac14 countability for the use of funds provided 

15 under this Act. 

16 (D) PRIORITY AND CONSIDERATIONS.— 

17 (i) PRIORITY.—In selecting eligible 

18 entities under this section, the Secretary 

19 shall give priority to rural and remote eli20 gible entities for which the average unem21 ployment rate or rate of poverty for Native 

22 Americans residing in census districts in 

23 which the eligible entity is located is at or 

24 near the highest average unemployment 


jbell on DSKDVH8Z91PROD with BILLS
13 

•S 1293 IS

1 rate or rate of poverty in the applicable 

2 State. 

3 (ii) CONSIDERATIONS.—In selecting 

4 eligible entities under this section, the Sec5 retary shall take into consideration— 

6 (I) the purposes of this Act, giv7 ing priority to job creation, entrepre8 neurship, and long-term sustainable 

9 economic growth in the communities 

10 of the eligible entity; 

11 (II) the remote and rural nature, 

12 general economic status, and poverty 

13 rate of the communities to be served; 

14 and 

15 (III) the commitment of the eligi16 ble entity to improve short-term eco17 nomic conditions and create long-term 

18 sustainable development of the com19 munities to be served. 

20 (b) ASSISTANCE FOR DEVELOPMENT OF COM21 PACTS.—The Secretary may make grants to any eligible 

22 entity to facilitate the development and planning of a com23 pact between the United States and the eligible entity. 

24 (c) ELEMENTS OF A COMPACT.— 


jbell on DSKDVH8Z91PROD with BILLS
14 

•S 1293 IS

1 (1) IN GENERAL.—A compact shall be nego2 tiated between the eligible entity and the Secretary. 

3 (2) REQUIREMENTS.—A compact shall contain 

4 elements necessary to achieve the economic develop5 ment strategy, including— 

6 (A) a description of the specific objectives 

7 for the reduction of poverty through the cre8 ation of jobs and economic development that is 

9 expected to be achieved throughout the duration 

10 of the compact, including a description of the 

11 respective roles and responsibilities of the eligi12 ble entity and the United States in the achieve13 ment of those objectives; 

14 (B) an identification of the programs to be 

15 included in the compact and a description of— 

16 (i) the manner in which the programs 

17 are to be integrated and delivered; and 

18 (ii) the results expected from the plan; 

19 (C) an identification of any private finan20 cial support or partnerships with industry or 

21 the private market to achieve development; 

22 (D) a list and description of— 

23 (i) regular benchmarks to measure 

24 progress toward achieving the specific ob25 jectives; and 


jbell on DSKDVH8Z91PROD with BILLS
15 

•S 1293 IS

1 (ii) a methodology for analysis of the 

2 results; 

3 (E) an identification of intended bene4 ficiaries, disaggregated by income level, gender, 

5 and age, to the maximum extent practicable; 

6 (F) an identification of any statutory pro7 visions, regulations, policies, or procedures that 

8 need to be waived to implement the plan; 

9 (G) a multiyear financial plan to guide the 

10 implementation of the compact; 

11 (H) a description of proposed mechanisms 

12 to execute the plan; 

13 (I) a requirement that the compact be ap14 proved by the governing body of the affected el15 igible entity; 

16 (J) a plan to ensure appropriate fiscal ac17 countability for the funds included in the com18 pact; and 

19 (K) a requirement for annual reports as 

20 described in section 7(b). 

21 (d) RENEGOTIATION.—At any time during the dura22 tion of a compact, Federal programs may be added or re23 moved from the compact in furtherance of the economic 

24 development strategy. 

25 (e) EXTENSIONS.— 


jbell on DSKDVH8Z91PROD with BILLS
16 

•S 1293 IS

1 (1) IN GENERAL.—If a compact is approaching 

2 expiration or has expired, the eligible entity that is 

3 a party to the compact and the United States may 

4 extend the compact for a period of not to exceed 10 

5 years. 

6 (2) SUBSEQUENT COMPACTS.—An eligible enti7 ty and the United States may renegotiate 1 or more 

8 subsequent compacts in accordance with this Act. 

9 (f) SUSPENSION AND TERMINATION OF ASSIST10 ANCE.— 

11 (1) IN GENERAL.—The Secretary may suspend 

12 or terminate assistance, in whole or in part, for an 

13 eligible entity that has entered into a compact with 

14 the United States if the Secretary determines that— 

15 (A) the eligible entity has failed to meet 

16 the responsibilities of the eligible entity under 

17 the compact; or 

18 (B) the eligible entity has engaged in a 

19 pattern of actions that is inconsistent with the 

20 purposes of this Act. 

21 (2) REINSTATEMENT.—The Secretary may re22 instate assistance for an eligible entity only if the 

23 Secretary determines that the eligible entity has 

24 demonstrated a commitment to correcting each conVerDate Mar 15 2010 00:38 Jun 30, 2011 Jkt 099200 PO 00000 Frm 00016 Fmt 6652 Sfmt 6201 E:\BILLS\S1293.IS S1293

jbell on DSKDVH8Z91PROD with BILLS
17 

•S 1293 IS

1 dition for which assistance was suspended or termi2 nated under paragraph (1). 

3 SEC. 7. PROGRAM ASSESSMENTS AND REPORTS. 

4 (a) REPORTS OF ELIGIBLE ENTITIES.—Each eligible 

5 entity shall prepare and submit to the Secretary an annual 

6 written report describing the assistance received by the eli7 gible entity under this Act during the preceding fiscal year 

8 and an analysis of the results of the demonstration project 

9 as of the date of the report. 

10 (b) REPORT CONTENTS.—A report required under 

11 subsection (a) shall include— 

12 (1) a description of the amount of obligations 

13 and expenditures for assistance provided during the 

14 preceding fiscal year; 

15 (2) a description of the programs and activities 

16 conducted by the eligible entity in furtherance of the 

17 economic development strategy of the eligible entity 

18 and the purposes of this Act; 

19 (3) an assessment of the effectiveness of the as20 sistance provided and progress made by the eligible 

21 entity toward achieving the economic development 

22 strategy of the eligible entity and the purposes of 

23 this Act; 

24 (4) an assessment of whether the requirements 

25 described in section 6(c) are being met; 


jbell on DSKDVH8Z91PROD with BILLS
18 

•S 1293 IS

1 (5) an analysis of the potential for the dem2 onstration project to provide lessons for other pro3 grams consistent with the purposes of this Act; and 

4 (6) such other information as the eligible entity 

5 considers to be relevant, taking into consideration 

6 the purposes of this Act. 

7 (c) SUBMISSION TO CONGRESS.—The Secretary shall 

8 submit the reports required under subsection (a), with 

9 such other information as the Secretary considers to be 

10 relevant, on an annual basis to— 

11 (1) the Committees on Energy and Commerce 

12 and Natural Resources of the House of Representa13 tives; and 

14 (2) the Committees on Indian Affairs, Com15 merce, Science, and Transportation, and Energy and 

16 Natural Resources of the Senate. 

17 SEC. 8. RELATIONSHIP TO FEDERAL TRUST RESPONSI18 BILITY. 

19 Nothing in this Act diminishes the Federal trust re20 sponsibility to Indian tribes, individual Indians, or relating 

21 to trust allotments. 

22 SEC. 9. AUTHORIZATION OF APPROPRIATIONS. 

23 (a) AUTHORIZATION OF APPROPRIATIONS.—There 

24 are authorized to be appropriated such sums as necessary 

25 to carry out this Act. 


jbell on DSKDVH8Z91PROD with BILLS
19 

•S 1293 IS

1 (b) ADMINISTRATIVE AND PROGRAM OVERSIGHT EX2 PENSES.—Of the funds made available to carry out this 

3 Act, not more than 5 percent may be used by the Sec4 retary for— 

5 (1) the administrative expenses of carrying out 

6 this Act; and 

7 (2) oversight of programs under this Act. 

Æ 


jbell on DSKDVH8Z91PROD with BILLS