89–006 

1 In this report, the terms ‘‘Native American,’’ ‘‘Native,’’ and ‘‘Indian’’ are used interchangeably. 2 2013 American Indian Population and Labor Force Report, Department of the Interior. 

115TH CONGRESS REPORT " ! HOUSE OF REPRESENTATIVES 2d Session 115–1037 

NATIVE AMERICAN BUSINESS INCUBATORS PROGRAM 

ACT 

NOVEMBER 20, 2018.—Committed to the Committee of the Whole House on the 

State of the Union and ordered to be printed 

Mr. BISHOP of Utah, from the Committee on Natural Resources, 

submitted the following 

R E P O R T 

[To accompany S. 607] 

[Including cost estimate of the Congressional Budget Office] 

The Committee on Natural Resources, to whom was referred the 

bill (S. 607) to establish a business incubators program within the 

Department of the Interior to promote economic development in Indian reservation communities, having considered the same, report 

favorably thereon without amendment and recommend that the bill 

do pass. 

PURPOSE OF THE BILL

The purpose of S. 607 is to establish a business incubators program within the Department of the Interior to promote economic 

development in Indian reservation communities. 

BACKGROUND AND NEED FOR LEGISLATION

For decades, Native American 1 communities have struggled with 

a wide array of difficulties relating to economic development on 

their land, including poor access to capital, remote and rural locations, and degradation of the local infrastructure. Only around half 

of all Native Americans (16 or older) residing on or near tribal communities have jobs, and a quarter of Native families earn an income that is below the federal poverty line.2

Today, approximately 56 million acres of land are held in trust 

by the United States (through the Department of the Interior) for 

2 

3https://www.bia.gov/frequently-asked-questions. 

4 25 U.S.C. 177; 25 U.S.C. 415. 

5 25 U.S.C. 2701 et seq. 

the benefit of individual Indians and Indian tribes.3 Many of these 

lands are in remote areas, and none may be leased for business, 

agriculture, or mineral uses without the approval of the Secretary 

of the Interior.4 Trust land is generally a prerequisite for a tribe 

to conduct gambling under the Indian Gaming Regulatory Act.5

The economies of Indian reservations in remote areas, where casinos may be a break-even proposition at best, suffer from great 

poverty. Many reservations and other Indian communities lack grocery stores, retail outlets, or banks. Residents may have to travel 

great distances (sometimes up to a two-hour drive) to buy groceries 

or go to a bank, while spending their disposable income on purchases off the reservation. Tribes have sought to keep dollars on 

their reservations to create sustainable economies, but they face a 

variety of challenges: • Federal Approval. As stated above, tribes and individual 

Indians may not lease their trust land without the permission 

of the Secretary of the Interior (this problem is not directly addressed by S. 607). • Legal Systems and Infrastructure. To attract businesses to 

reservations, tribal governments need to provide businessfriendly laws and independent court systems. Companies and 

investors, Indian and non-Indian alike, rely on governments to 

ensure fair competition, maintain law and order, and create 

laws and judicial systems that help enforce contracts and property rights. Not all tribal governments have enacted the kinds 

of business and commercial codes that businesses and banks 

need before they will locate and operate on reservations. Additionally, many components of tribal infrastructure need significant repair or replacement. • Access to Capital. In many Native American communities, 

there is a lack of equity resources, such as home equity or intergenerational family assets. Likewise, trust land cannot be 

used as collateral, so access to capital is complicated further in 

Indian Country. Even if access to private capital is available, 

it may come at a higher cost. • Remote Locations. The remoteness of many Indian communities diminishes the possibility of building commercial markets for goods and services or developing many types of industrial or manufacturing economies. • Sovereign Immunity. Under a legal doctrine developed by 

federal courts, Indian tribes enjoy sovereign immunity against 

States and private citizens. Such sovereign immunity exists on 

and off an Indian reservation. A tribe may not be sued unless 

its sovereign immunity is waived by the tribe or by Congress, 

which has not debated this issue in many years. Tribes consider sovereign immunity a valid exercise of self-governance 

which promotes economic development. Developers or investors 

unfamiliar with a tribe’s use of sovereign immunity may be reluctant to engage in business ventures with it. 

In recent years, Congress has enacted laws to grant tribes 

stronger, more comprehensive control over businesses, agricultural, 

and residential leasing of tribal lands. One example is the Helping 

3 

6Public Law 112–151, 25 U.S.C. 415. 

7 25 U.S.C. 4301 et seq. 

Expedite and Advance Responsible Tribal Home Ownership Act of 

2012, or the HEARTH Act.6 Congress has also enacted multiple 

laws to assist these communities in obtaining access to capital in 

the forms of loan guarantees, procurement programs, and community development financial institutions (CDFIs). One of these laws, 

the Native American Business Development, Trade Promotion, and 

Tourism Act of 2000,7 aids tribes with business development and 

helps ensure that tribal businesses follow all legal and regulatory 

requirements, among other things. 

While Congress has attempted to alleviate challenges experienced by tribal businesses, various challenges remain. As mentioned previously, many Indian reservations and communities are 

in predominantly rural, remote locations, and enticing entrepreneurs to fund and support businesses in these areas can be difficult. 

S. 607 is premised on the idea that programs supporting business incubators are uniquely able to support tribal businesses in 

ways that broad legislation cannot, as incubators can be tailored to 

fit the needs of the various regions where tribal businesses exist. 

As defined in the bill, a business incubator is an organization that 

provides physical workspace and facilities resources to startups and 

established businesses and is designed to accelerate the growth and 

success of businesses through a variety of business support resources and services. By offering services that range from workplace enhancement, comprehensive skills training, and networking 

assistance, business incubators have been a reliable and consistent 

solution to the many problems that continue to plague Indian 

Country. 

There are several native business incubator networks serving Indian country throughout the United States; however S. 607 would 

establish a new program within the Department of the Interior. 

The bill would also require the Department of the Interior to coordinate its business incubator activities with other federal agencies to promote Native American business development. 

SECTION-BY-SECTION ANALYSIS

Sec. 1. Short title 

• Provides that this Act may be cited as the ‘‘Native American Business Incubators Program Act. 

Sec. 2. Findings 

• Provides Congressional findings. 

Sec. 3. Definitions 

• Defines terms used in the Act. 

Sec. 4. Establishment of program 

• Requires the Department of the Interior to establish a 

grant program in the Office of Indian Energy and Economic 

Development for establishing and operating business incubators that serve Native American communities. 

4 

• A business incubator is an organization that: (1) provides 

physical workspace and facilities resources to startups and established businesses; and (2) is designed to accelerate the 

growth and success of businesses through a variety of business 

support resources and services. Grant applicants may be institutions of higher education, private nonprofits, Native American tribes, or tribal nonprofits. 

Sec. 5. Regulations 

• Directs the Secretary of the Interior to issue new regulations to implement the program 180 days after the bill is 

signed into law. 

Sec. 6. Schools to business incubator pipeline 

• The Secretary of the Interior must facilitate the establishment of relationships between grant recipients and educational 

institutions serving Native American communities. 

Sec. 7. Agency partnerships 

• Directs the Secretary of the Interior to coordinate with the 

Secretary of Agriculture, Secretary of Commerce, Secretary of 

the Treasury and the Administrator of the Small Business Administration to ensure that business incubators receiving grant 

funds under the program have the information and materials 

they need to apply for each agenda’s business and entrepreneurial development programs. 

Sec. 8. Authorizations of appropriations 

• Authorizes the appropriation of $5 million for each of fiscal 

years 2019 through 2023 to carry out the program. 

COMMITTEE ACTION

S. 607 was introduced on March 13, 2017, by Senator Tom Udall 

(D–NM). The Senate passed the bill by voice vote on March 22, 

2018. In the House of Representatives, the bill was referred to the 

Committee on Natural Resources and within the Committee to the 

Subcommittee on Indian, Insular and Alaska Native Affairs. The 

Subcommittee held a hearing on the bill on July 24, 2018. On September 27, 2018, the Committee on Natural Resources met to consider the bill. The Subcommittee was discharged by unanimous 

consent. No amendments were offered, and the bill was ordered favorably reported to the House of Representatives by unanimous 

consent. 

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. 

COMPLIANCE WITH HOUSE RULE XIII AND CONGRESSIONAL BUDGET

ACT

1. Cost of Legislation and the Congressional Budget Act. With respect to the requirements of clause 3(c)(2) and (3) of rule XIII of 

5 

the Rules of the House of Representatives and sections 308(a) and 

402 of the Congressional Budget Act of 1974, the Committee has 

received the following estimate for the bill from the Director of the 

Congressional Budget Office: 

U.S. CONGRESS, 

CONGRESSIONAL BUDGET OFFICE, 

Washington, DC, October 2, 2018. 

Hon. ROB BISHOP, 

Chairman, Committee on Natural Resources, 

House of Representatives, Washington, DC. 

DEAR MR. CHAIRMAN: The Congressional Budget Office has prepared the enclosed cost estimate for S. 607, the Native American 

Business Incubators Program Act. 

If you wish further details on this estimate, we will be pleased 

to provide them. The CBO staff contact is Robert Reese. 

Sincerely, 

KEITH HALL, Director, 

Enclosure. 

S. 607—Native American Business Incubators Program Act 

Summary: S. 607 would authorize the Bureau of Indian Affairs 

(BIA) to award grants to eligible public and private organizations 

to provide physical workspaces and other resources to Native 

American entrepreneurs and businesses. The legislation would authorize the appropriation of $5 million annually over the 2019– 

2023 period. 

CBO estimates that implementing S. 607 would cost $18 million 

over the 2019–2023 period, assuming appropriation of the authorized amounts. Enacting the legislation would not affect direct 

spending or revenues; therefore, pay-as-you-go procedures do not 

apply. 

CBO estimates that enacting S. 607 would not increase net direct 

spending or on-budget deficits in any of the four consecutive 10- 

year periods beginning in 2029. 

S. 607 contains no intergovernmental or private-sector mandates 

as defined in the Unfunded Mandates Reform Act (UMRA). 

Estimated cost to the Federal Government: The estimated budgetary effect of S. 607 is shown in the following table. The costs of 

the legislation fall within budget function 450 (community and regional development). 

By fiscal year, in millions of dollars— 

2019 2020 2021 2022 2023 2019– 

2023 

INCREASES IN SPENDING SUBJECT TO APPROPRIATION 

Authorization Level ........................................................... 5 5 5 5 5 25 

Estimated Outlays ............................................................ 1 3 4 5 5 18 

Basis of estimate: For this estimate, CBO assumes that S. 607 

will be enacted near the end of 2018 and that the authorized 

amounts will be appropriated for each fiscal year beginning in 

6 

2019. Estimated outlays are based on historical spending patterns 

for similar programs. 

S. 607 would authorize the appropriation of $5 million annually 

over the 2019–2023 period to fund a grant program to aid the development of Native American businesses. The program would be 

managed by BIA and would include providing physical workplaces, 

business skills training, and access to networks of potential investors, among other services. All grants would be awarded for threeyear periods and could be renewed for additional three-year terms. 

CBO estimates that implementing the program would cost $18 million over the 2019–2023 period and $7 million after 2023. 

Pay-As-You-Go considerations: None. 

Increase in long-term direct spending and deficits: CBO estimates that enacting S. 607 would not increase net direct spending 

or on-budget deficits in any of the four consecutive 10-year periods 

beginning in 2029. 

Intergovernmental and private-sector impact: S. 607 contains no 

intergovernmental or private-sector mandates as defined in UMRA. 

Tribal governments would benefit from grants established in the 

bill to support the growth of Native American businesses and Native American entrepreneurs. Any costs to tribal governments 

would result from complying with conditions of assistance. 

Previous CBO estimate: On April 21, 2017, CBO transmitted an 

estimate for S. 607 as ordered reported by the Senate Committee 

on Indian Affairs on March 29, 2017. The two versions of S. 607 

are similar and the differences in CBO’s estimate of their cost reflect differences in CBO’s assumed date of enactment of the legislation. 

Estimate prepared by: Federal costs: Robert Reese; Mandates: 

Rachel Austin. 

Estimate reviewed by: Kim P. Cawley, Chief, Natural and Physical Resources Cost Estimates Unit; Susan Willie, Chief, Public and 

Private Mandates; H. Samuel Papenfuss, Deputy Assistant Director for Budget Analysis. 

2. 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 establish a business incubators program within the 

Department of the Interior to promote economic development in Indian reservation communities. 

EARMARK STATEMENT

This bill does not contain any Congressional earmarks, limited 

tax benefits, or limited tariff benefits as defined under clause 9(e), 

9(f), and 9(g) of rule XXI of the Rules of the House of Representatives. 

COMPLIANCE WITH PUBLIC LAW 104–4

This bill contains no unfunded mandates. 

COMPLIANCE WITH H. RES. 5

Directed Rule Making. Section 5 of this bill directs the Secretary 

of the Interior to issue regulations to implement the program authorized by this bill. 

7 

Duplication of Existing Programs. This bill does not establish or 

reauthorize a program of the federal government known to be duplicative of another program. Such program was not included in 

any report from the Government Accountability Office to Congress 

pursuant to section 21 of Public Law 111–139 or identified in the 

most recent Catalog of Federal Domestic Assistance published pursuant to the Federal Program Information Act (Public Law 95–220, 

as amended by Public Law 98–169) as relating to other programs. 

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 to existing law. 

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