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90–177 PDF 2004

S. HRG. 108–386

NOMINATION OF DAVID W. ANDERSON

HEARING

BEFORE THE

COMMITTEE ON INDIAN AFFAIRS

UNITED STATES SENATE

ONE HUNDRED EIGHTH CONGRESS

FIRST SESSION

ON

CONFIRMATION HEARING OF THE NOMINATION OF DAVID W.

ANDERSON TO BE ASSISTANT SECRETARY FOR INDIAN AFFAIRS

OCTOBER 22, 2003

WASHINGTON, DC

(
COMMITTEE ON INDIAN AFFAIRS

BEN NIGHTHORSE CAMPBELL, Colorado, Chairman

DANIEL K. INOUYE, Hawaii, Vice Chairman

JOHN McCAIN, Arizona,

PETE V. DOMENICI, New Mexico

CRAIG THOMAS, Wyoming

ORRIN G. HATCH, Utah

JAMES M. INHOFE, Oklahoma

GORDON SMITH, Oregon

LISA MURKOWSKI, Alaska

KENT CONRAD, North Dakota

HARRY REID, Nevada

DANIEL K. AKAKA, Hawaii

BYRON L. DORGAN, North Dakota

TIM JOHNSON, South Dakota

MARIA CANTWELL, Washington

PAUL MOOREHEAD, Majority Staff Director/Chief Counsel

PATRICIA M. ZELL, Minority Staff Director/Chief Counsel

(II)
(III)

C O N T E N T S

Page

Statements:

Anderson, David, nominee to be assistant secretary—Indian Affairs, Department of the Interior ............................................................................... 8

Bennett, Audrey, president, Prairie Island Indian Community, Welch,

MN ................................................................................................................. 6

Campbell, Hon. Ben Nighthorse, U.S. Senator from Colorado, chairman,

Committee on Indian Affairs ....................................................................... 1

Coleman, Hon. Norm, U.S. Senator from Minnesota .................................... 3

Dorgan, Hon. Byron L., U.S. Senator from North Dakota ............................ 5

Inouye, Hon. Daniel K., U.S. Senator from Hawaii, vice chairman, Committee on Indian Affairs ............................................................................... 2

Johnson, Hon. Tim, U.S. Senator from South Dakota .................................. 2

Murkowski, Hon. Lisa, U.S. Senator from Alaska ......................................... 10

Smith, Hon. Gordon, U.S. Senator from Oregon ............................................ 2

Taylor, Louis, chairman, Lac Courte Oreilles Band of Lake Superior

Chippewa, Hayward, WI .............................................................................. 5

Thomas, Hon. Craig, U.S. Senator from Wyoming ........................................ 2

APPENDIX

Prepared statements:

Anderson, David (with attachment) ................................................................ 20

Bennett, Audrey ................................................................................................ 17

Taylor, Louis ..................................................................................................... 18

(1)

NOMINATION OF DAVID W. ANDERSON TO BE

ASSISTANT SECRETARY, INDIAN AFFAIRS

WEDNESDAY, OCTOBER 22, 2003

U.S. SENATE,

COMMITTEE ON INDIAN AFFAIRS,

Washington, DC.

The committee met, pursuant to notice, at 10 a.m. in room 106,

Senate Dirksen Building, Hon. Ben Nighthorse Campbell (chairman of the committee) presiding.

Present: Senators Campbell, Thomas, Smith, Murkowski, Inouye,

Johnson, and Dorgan.

STATEMENT OF HON. BEN NIGHTHORSE CAMPBELL, U.S. SENATOR FROM COLORADO, CHAIRMAN, COMMITTEE ON INDIAN AFFAIRS

The CHAIRMAN. Welcome to the Committee on Indian Affairs

hearing on the President’s nomination of David Anderson to be Assistant Secretary for Indian Affairs.

Before proceeding, we have a brief video to show to the committee, and if somebody could go ahead and roll that, we will watch

it first.

[Video presentation.]

The CHAIRMAN. Thank you for that clip. That is a very impressive and inspiring film, Mr. Anderson, and perhaps even a more

important statement about what can be done if you take charge of

your own life, and also the responsibility of trying to help other

people, and I certainly commend you for that.

On Monday the members received the committee memorandum,

so the committee is well aware of your background and many accomplishments. The job for which you have been nominated is one

of the most important and probably the most difficult job in the

Federal Government, at least in my view. But I believe the President has made the right decision and chosen wisely in nominating

you.

In addition to the usual problems in running a nationwide bureaucracy aimed at alleviating a lot of suffering in Indian country,

there are additional challenges like the Cobell v. Norton Trust

Fund lawsuit, substance abuse problems in Indian communities,

which you are well aware of, and the ever-present need to assist

tribes with the challenges they face.

I think I am on solid ground when I say that I do believe you

are the first nominee to head up the BIA to be a publicly traded
2

on the NASDAQ, and I think your experience will serve you well

in the years to come.

And with that I will refrain from asking if you brought any barbecue samples today, by the way.

I would like to turn to my colleague, Senator Inouye, for his

statement now.

STATEMENT OF HON. DANIEL K. INOUYE, U.S. SENATOR FROM

HAWAII, VICE CHAIRMAN, COMMITTEE ON INDIAN AFFAIRS

Senator INOUYE. Mr. Chairman, I am pleased to join you today

in welcoming the President’s nominee, Dave Anderson, to serve as

Assistant Secretary for Indian Affairs in the U.S. Department of

the Interior. I look forward to hearing from Mr. Anderson as to his

vision for the important position he has been nominated to hold,

and I wish him all of the luck and good fortune.

Thank you, sir.

The CHAIRMAN. Thank you.

Senator Thomas, did you have a statement?

STATEMENT OF HON. CRAIG THOMAS, U.S. SENATOR FROM

WYOMING

Senator THOMAS. Thank you, Mr. Chairman. I am just glad to be

here. I am glad you are having this hearing. This certainly is an

important position. I have met with Mr. Anderson yesterday. We

need to fill this vacancy that has been there, certainly, and there

are other things that need to be done. I am pleased to have someone with this sort of background in this job. I think there are some

new ideas that need to be instituted in what we are doing here,

and I think we have an opportunity to do that. So I look forward

to hearing from the witnesses. Thank you.

The CHAIRMAN. Senator Smith, are you ready?

STATEMENT OF HON. GORDON SMITH, U.S. SENATOR FROM

OREGON

Senator SMITH. Thank you, Mr. Chairman. Just as with Senator

Thomas, I had the privilege of meeting the nominee, Mr. Anderson,

yesterday and found him personally engaging, story-inspiring, and

commend the President for picking a man who both personally and

professionally can serve as a fabulous role model to our Native

American brothers and sisters. So I am happy to be here in support

of this nominee.

The CHAIRMAN. Thank you.

Senator Johnson, did you have an opening statement?

Senator JOHNSON. Yes; Thank you, Mr. Chairman.

STATEMENT OF HON. TIM JOHNSON, U.S. SENATOR FROM

SOUTH DAKOTA

Senator JOHNSON. Mr. Anderson and Chairman Taylor, President

Bennett, welcome to the committee. As you probably know, my

home State of South Dakota is home to nine Indian reservations.

I am proud to represent Lakota, Nakota, and Dakota Nations. My

tribal leaders wish to congratulate Mr. Anderson on his nomination

and invite him to come to South Dakota Indian country.
3

The Great Plains tribes hold 27 percent of the individual Indian

money accounts over 67,000, more than any other region. In terms

of land ownership records, the Great Plains tribes hold 36 percent

of all land title documents, 37 percent of land owner interests, and

33 percent of the Nation’s trust allotments in tribal tracts. As such,

I very much appreciate your critical attention to tribal and individual Indian trust needs.

I am not proud to point out that four of the five poorest counties

in all of America are located on South Dakota Indian reservations.

Despite years of Federal neglect, my tribal constituents believe in

the Federal Government’s treaty and trust obligations. They take

their relationship with the Federal Government very seriously, and

I am hopeful Mr. Anderson, and I know that he will, will do the

same.

You have a daunting task ahead of you. I want to work with you

so that our tribes and tribal constituents can have hope for the future.

I also want to close by taking this opportunity to thank Aurene

Martin for her service as acting assistant secretary. Ms. Martin

thoughtfully took on her acting duties with grace and with diligence. I congratulate her on her efforts.

I want to thank my colleague, Senator Coleman, as well, for participating in this hearing today.

And, Mr. Anderson, good luck on your confirmation.

The CHAIRMAN. Thank you.

And before we proceed with Senator Coleman’s introduction, Mr.

Anderson, I understand your family is with you here today. Would

you like to introduce them to the committee, if you would, please?

Mr. ANDERSON. My dad is a Choctaw Indian from Idabel, OK,

and my mom is a Lac Courte Oreilles Ojibwa from Hayward, WI.

I have my sister and her husband, Dr. Rick St. Germane, from

the Lac Courte Oreilles Tribe; and my wife Kathy and son James,

who works with us in the Life Skills Center and his wife; my brother Philip; and my sister’s two boys.

The CHAIRMAN. We are very happy that you are here.

Mr. ANDERSON. And also we have our tribal chairman, Louis

Taylor, from the Lac Courte Oreilles Tribe, who will be making a

statement, and also Al Trepania, a representative of the Great

Lakes Inter-Tribal Council.

The CHAIRMAN. Very good. Thank you for being here.

First, Senator Dorgan, we were just going to hear the introduction. Did you have a statement before?

Senator DORGAN. No.

The CHAIRMAN. Okay. We will go ahead and proceed with our

colleague, Senator Coleman, from Minnesota, to introduce Mr. Anderson.

STATEMENT OF HON. NORM COLEMAN, U.S. SENATOR FROM

MINNESOTA

Senator COLEMAN. Thank you, Mr. Chairman.

Chairman Campbell, Senator Inouye, members of the committee,

it is my high honor to introduce a good friend, a great Minnesotan,

and a real American hero, David W. Anderson, to the committee

this morning.
4

Mr. Anderson, or Famous Dave, as he is known in our home

State, stands before you today as the President’s nominee to serve

as Assistant Secretary of the Interior for Indian Affairs. I can assure you there is no better man for the job. He is a great business

leader, a humble and remarkable public servant, and, finally, a

barbecue extraordinaire. And I can tell you this guy knows how to

make a pretty mean stack of ribs; there is no question about that.

Mr. Anderson’s credentials are beyond compare. As founder and

chairman of the successful nationwide restaurant chain Famous

Dave’s, he knows how to run a big operation and get things done.

His business ventures alone have created over 18,000 new jobs.

Ernst & Young, NASDAQ, and USA Today have all recognized him

as Minnesota’s emerging entrepreneur of the year. There is no

question, ladies and gentlemen, this guy is good. He is a beacon of

hope. Certainly our Native American brothers and sisters need a

beacon of hope. America needs a beacon of hope. And that is what

Dave Anderson is all about.

Few people understand the issues facing the Native American

community better than Mr. Anderson. He himself is a Native

American and a proud and active member of the Chippewa and

Choctaw Tribes, and the President recently appointed Mr. Anderson to his Board of Advisers on Tribal Colleges and Universities.

You are fortunate to have such a stellar nominee before you

today. As far as Federal appointments go, this isn’t exactly the

easiest job. I think the chairman reflected that in his opening

statement. There is no question that the next Assistant Secretary

for Indian Affairs has some heavy lifting to do, some hard work

ahead. Some might shirk from such a post, but that is not the kind

of guy Dave Anderson is. Let me get straight to the point: The Bureau of Indian Affairs [BIA] needs this man.

God blessed Dave with great business success, but also called

him to serve others. Mr. Anderson has been true to his faith. He

has committed his life to public service and making a difference in

the lives of his fellow man. In Minnesota, Mr. Anderson is far more

famous for his charitable works than his restaurants. If I were to

list all the good deeds he has done, we would be here forever; and

that is even in Senate time. But I will mention a few.

Every year he celebrates Thanksgiving and Christmas with Minneapolis and St. Paul’s poorest, providing over 400 families with a

healthy holiday meal. He supports a number of initiatives at the

Minneapolis American Indian Center. One of these, the Golden Eagles program, provides over 300 Minnesota Native American kids

with meaningful after-school activities. Mr. Anderson is also a leader at the American Indian Housing Corporation, which helps approximately 200 Native American families a year find a home. And

he puts his money where his mouth is. Overall, he has given over

$6 million to Native American causes.

Now you can see why so many, including this Senator, call this

man a hero. There is no question that Dave Anderson has been

doing the Lord’s work. Now it is time to give him a shot at helping

Uncle Sam do his.

Members of the committee, thank you for the honor of introducing my friend, David Anderson.
5

The CHAIRMAN. Thank you, Senator Coleman. And you are certainly welcome to stay throughout the hearing. Or if you have another commitment, we understand, and you certainly can be excused.

I think you are right, I think the BIA needs Mr. Anderson much

more than he needs the job, and thank you for that nice introduction.

We will now hear from Louis Taylor, chairman of the Lac Courte

Oreilles Tribe from Wisconsin; and from Audrey Bennett, chairwoman of the Prairie Island Community, too; and finally from our

nominee, Dave Anderson.

And, by the way, for those who are interested, we are going to

convene the business meeting right after the hearing so we can

vote on Mr. Anderson’s nomination today.

Senator DORGAN. Mr. Chairman.

The CHAIRMAN. Yes.

STATEMENT OF HON. BYRON L. DORGAN, U.S. SENATOR FROM

NORTH DAKOTA

Senator DORGAN. Prior to hearing from the first two witnesses,

I’d like to make very brief comments, I don’t want to interrupt Senator Coleman’s presentation; I know he is ready to make it.

You have heard me many times say we have a full-blown crisis

in health care, housing, and education on Indian reservations. Not

much has changed over the 15 or 20 years that I have been involved in these issues with you and others. I am going to support

this nomination. I think Mr. Anderson is an extraordinary individual, and I wish him well and want to work with him.

The CHAIRMAN. Thank you.

Ms. Bennett, why don’t you go ahead and proceed?

Oh, excuse me. I think on my list here I had Mr. Taylor first.

Go ahead.

STATEMENT OF LOUIS TAYLOR, CHAIRMAN, LAC COURTE

OREILLES BAND OF LAKE SUPERIOR CHIPPEWA, HAYWARD,

WI

Mr. TAYLOR. Boozhoo, boozhoo. It is good to be here today. I am

Louis Taylor, Chairman of the Lac Courte Oreilles Tribe. I would

like to introduce a few people that came with me today. Russ Barber, vice chairman of the Lac Courte Oreilles Tribe; Al Trepania.

He has already been introduced. I would like him to stand up

again. He is president of the Great Lakes Inter-Tribal Council, 11

member tribes from the State of Wisconsin and past chairman.

I will tell you a little bit about our reservation now, if I could.

The Lac Courte Oreilles Tribe is located in Northwestern Wisconsin, near the Town of Hayward in Sawyer County. Our reservation

is comprised of approximately 74,000 acres, with the tribal membership at 5,531. Lac Courte Oreilles has the third largest membership of the 11 tribes in Wisconsin.

Some of the services the Lac Courte Oreilles Tribe provides its

community include a Head Start program, K–12 school system,

community college, road construction and maintenance, fire department, EMT service, social services, emergency shelter, halfway
6

house, public radio station, medical services, elderly nutrition sites,

and youth centers.

Additionally, the tribe owns and operates a cranberry marsh,

grocery store, gas station, resort, construction company, casino, and

credit union.

Although we have made some great accomplishments in recent

years, largely due to a modest gaming establishment, there are still

areas of significant need on the reservation The family per capita

income on the reservation in 1999 equaled $24,600 per year, with

the tribe’s seasonal adjustment unemployment rate of 20 percent.

Contrary to popular belief, our tribe and many other tribes do

not distribute per capita payments to its members, as we are almost always operating with a budget deficit and rely on grant moneys in order to provide basic services and jobs for our tribal members. Even with our ongoing challenges, there has been steady

growth at Lac Courte Oreilles, and we will continue our efforts for

the benefit of our tribal members for generations to come.

The Lac Courte Oreilles Tribal Governing Board is the governing

body of the Band and I, as chairman, am pleased that David Anderson has been nominated by President Bush to serve as the U.S.

Department of the Interior’s Assistant Secretary for Indian Affairs.

I am extremely proud that a tribal member of Lac Courte Oreilles

has been nominated to serve the tribal governments and the

United States in this important position.

I am honored to be here today and would like to thank Chairman

Ben Nighthorse Campbell and the U.S. Senate Committee on Indian Affairs for the invitation to speak.

As I grew up on the reservation and followed suit and became

chairman, I noticed we put a lot of children through school, and

they go out into the world and some never come back. That is good,

you know, they sought their own way through life, and that is fine.

But Dave is a big success and we are very proud of him, and whenever you call on him, he comes back and is constantly returning favors back to his reservation from which he came, and I am very

proud of that. Not very many people do that.

So thank you.

[Prepared statement of Mr. Taylor appears in appendix.]

The CHAIRMAN. Thank you.

Ms. Bennett.

STATEMENT OF AUDREY BENNETT, PRESIDENT, PRAIRIE

ISLAND INDIAN COMMUNITY, WELCH, MN

Ms. BENNETT. Good morning, Mr. Chairman and members of the

committee. My name is Audrey Bennett. I am president of the Prairie Island Indian Community. We are located in Minnesota, along

the banks of the Mississippi River, in the southern part of the

State.

It is an honor to be here on behalf of our tribal council and tribal

members to speak in support of President Bush’s nomination of

David Anderson to the position of Assistant Secretary, BIA.

In addition to serving our tribal community as its president, I am

the treasurer of the National Indian Gaming Association and the

immediate past chairperson of the Minnesota Indian Affairs Council. I have been involved in tribal politics much of my adult life and
7

know full well the challenges we as native peoples face in this

country.

Our cultures are eroding with the passing of time. Land issues

threaten our sense of community and many tribes continue to

struggle for economic development capable of sustaining their governments. And many of our children are not getting the education

they need to succeed in this world, while others are succumbing to

today’s most sinister social ills.

The BIA, for all its faults, remains a critical source of addressing

and helping meet these challenges. As such, the BIA is deserving

of leadership that reflects its significance and the magnitude of its

challenges at hand. We believe Mr. Anderson can satisfy this role,

and we fully support his nomination.

Throughout his life, Mr. Anderson has pursued the American

dream for his family and his people. Along the way he has experienced numerous personal and professional setbacks, but they only

sharpened his resolve. In this way, his life is quite similar to the

struggles and triumphs of Indian people throughout this country.

He is a testament to what can be accomplished through hard work

and dedication, and he is an inspiration to our young people.

As a Minnesota tribe, we have witnessed many of Mr. Anderson’s

accomplishments. We have seen firsthand his commitment to improving the lives of Native Americans on and off the reservation.

To this day he can be found offering guidance to Native American

teens at the Life Skills Center for Leadership in Minneapolis, an

organization he founded and helps finance. His work in tribal gaming helped build a foundation on which a number of tribal communities throughout the Country now are beginning to thrive, including the Mille Lacs Band of Ojibwa and the Lac Courte Oreilles

Tribes where he is an enrolled member and a formal CEO.

His successes with the Lac Courte Oreilles has heralded by

President Reagan’s Commission on Indian Reservation Economics.

As a entrepreneur, Mr. Anderson has demonstrated a keen insight

for business, substantiated by his more than 80 Famous Dave’s restaurants, spanning some 20 States. Today, in Minnesota and in

many other places, he is virtually a household name.

Mr. Anderson also is no stranger to the public policy. He is a

graduate of Harvard University Kennedy School of Government

and has served on numerous public service positions, including the

Wisconsin Council on Minority Business Development, the National

Task Force on Reservation Gaming, the Advisory Council for Tribal

Colleges and Universities, and most recently the American Indian

Education Foundation.

In a recent editorial, the St. Paul Pioneer Press described Mr.

Anderson as a generous man, giving of his time and his fortune to

help young native people and a broader community. That same editorial also questioned his thinking for wanting to take what the

paper described as one of the most challenging and complicated

jobs in Washington. Perhaps it is rare to find someone with Mr.

Anderson’s blend of real-world experience, education, and desire to

do good who is willing to take on what some believe is an impossible assignment.

There is no question that leading the BIA is a formidable task,

but it is not insurmountable. It can’t be because there is too much
8

at stake if we allow it to fail. As a Washington outsider, we believe

that Mr. Anderson will bring a fresh perspective to numerous

issues that have plagued the BIA for decades, and we believe a

source of frustration for tribes and numerous administrations alike.

Mr. Anderson is worthy of this opportunity and capable of meeting the enormous challenges before him. We urge you to accept his

nomination and confirm him to the position of Assistant Secretary,

BIA.

Mr. Chairman, members of the committee, thank you for this opportunity to testify in support of Mr. Anderson’s nomination.

[Prepared statement of Ms. Bennett appears in appendix.]

The CHAIRMAN. Thank both of you for appearing.

Now we will hear from the nominee. Dave, if you will come up

to the table there. Just go ahead and proceed at your own leisure.

STATEMENT OF DAVID ANDERSON, NOMINEE TO BE ASSISTANT SECRETARY—INDIAN AFFAIRS, DEPARTMENT OF THE

INTERIOR

Mr. ANDERSON. Mr. Chairman, in the tradition of all our native

people, we have always been a spiritual group of people, and I

would like to begin this with a prayer, so I ask for your indulgence.

If we could all stand.

The CHAIRMAN. That is fine.

Mr. ANDERSON. Dear Heavenly Father, we come here before you,

creator of all things, and we come here humbly, asking for your

presence here, and we ask that today that you give us all wisdom

and guidance, and especially I ask for your wisdom and your guidance as I begin this journey. There are many things that we don’t

have answers for and many things that sometimes we have a tough

time making a decision about, but I know that you will be with us

and you will be guiding us. And I ask for your protection over our

President of the United States. I ask for your guidance for our Senators, our legislators, and also I ask for your loving, protective

hand and healing hand to be over all of our Indian tribes and our

tribal leaders. As America’s first people, we have always been a

spiritual people, and today I come to understand the meaning of

faith. So as I begin this journey, I ask that you be with me, I ask

that you give me guidance, and this truly is a remarkable, wonderful country that we all live in, and we thank you for that in Thy

precious name. Amen.

The CHAIRMAN. Thank you. Some of us around here believe if we

made more decisions by the good book and fewer by the law book,

we would be a better Nation. Why don’t you go ahead and proceed?

Mr. ANDERSON. I want to thank the Senate committee for the opportunity to appear here before you this morning regarding your

consideration of my nomination by President Bush to be Assistant

Secretary for Indian Affairs. I feel both humbled and honored to be

considered for this important position.

My father is an enrolled member of the great Choctaw Nation

and was born and raised on the red earth of Idabel, OK. My mother is an enrolled tribal member of the Lake Superior Band of Lac

Courte Oreilles Ojibwa located in the beautiful north woods of Hayward, WI. Both of my parents were raised in BIA schools and met

at Haskell, which is kind of fortunate for me that they met. And
9

my dad, being a good old southern boy, when they got married,

used to haul my mom down south every weekend until she learned

how to cook southern. So I think that is where some of the cooking

passion comes from in my family. I was born and raised in Chicago,

but I spent my summers on the Lac Courte Oreilles Reservation in

northern Wisconsin and later, some of my professional life, working

for the tribe.

Throughout my life I have served tribes in the business and commercial development of their resources, and now I look forward to

being able to serve at this level. As has been mentioned, most of

my life I think I have always wanted to be in business. I have pretty much shied away from tribal politics, but I find myself always

having to support something in some way, shape, or form. But

some time ago I realized that I had to change if things were going

to be different, because not all throughout my life things were like

I would have liked them to be, and at some point I came to understand that I needed to accept 100 percent responsibility of changing

who I was if my life was going to be different. And I have really

come to believe that just being born in this country is winning the

biggest lottery that any of us could ever hope to win.

And even though I was an academic underachiever in school, because I was in the bottom one-third half of the class that made the

top half possible, today, though, I have come to understand that

knowledge is an incredible gift that we all have been given. And

I went back and worked hard, and so despite not having an undergraduate degree, today I do have my master’s degree from the John

F. Kennedy School of Government at Harvard University. And even

though, throughout my life, I have had tough times, I have never

given up.

I started my own business when I was age 19. By the time I was

21 I had all the Sears accounts and J.C. Penney business in the

city of Chicago, as well as every major retail florist, as I was a

wholesale florist. And throughout my lifetime I have created over

18,000 new jobs here in America.

My last business, Famous Dave’s of America, my barbecue company, was actually started on the boundary of the Lac Courte

Oreilles Reservation, so I have been able to prove that it doesn’t

matter where you are born, it doesn’t matter what you have been

through. The only thing that matters in this great, incredible country that we live in, if you hold true to your dreams and you follow

your dreams, and you never quit, that you can accomplish some incredible things, because today Famous Dave’s has restaurants from

here in Washington, DC all the way to the Rockies. Our restaurants average between $2.5 million to $5 million yearly. We will

have a run rate of over $200 million in annual sales. And we have

an additional 100 restaurants signed up, ready to be built.

And so today I appear here before you as a sober person, even

though I spent much of my younger years as a drinking person.

And I am not embarrassed to admit to these things publicly because I really believe that leaders like myself need to stand up, and

we need to be able to say to our communities that we can overcome

these debilitating things that are ravishing our people. And even

though it was difficult for myself, I am thankful for a family that

believed in me. And my parents, when I was younger, every night
10

before I went to bed, would tell me that, they would say, son, we

believe in you, we are proud of you, and no matter what happens

we will support you, and throughout whatever happens in your

day, we want you to know that your mom and dad are always praying for you. And those are incredible words to be said to me as a

young person, and I think if young people all across America would

have those things said to them, that many of the heartaches that

we face would be met with resolve and hope, because I really believe that today it isn’t that the Federal Government is non-responsive or that the BIA is inefficient. I really believe that the reasons

why we have the things that we face on our reservations, the high

alcoholism rates, the dropout rates, the high suicide rates, these

are really symptoms of young people growing up without hope. And

this is where I hope that with all the other very important things

that we have to be accountable for and be responsible for, I hope

that my story can impact the youth of tomorrow, because they will

be our next leaders.

And so today I stand here before you as a grateful and humble

person. I feel that my life story of achievement, as well as failure,

can serve both as a testament to the resolve of native people, but

also to provide encouragement, because we have seen tremendous

improvement over the last few years of our people. And I am excited and encouraged to be part of this, and I just want to thank

all of you for giving me this chance and for considering me as the

next Assistant Secretary.

Thank you.

[Prepared statement of Mr. Anderson appears in appendix.]

The CHAIRMAN. Thank you, Dave. You have certainly learned

some real life experiences, going through some tough times, as

many Indian children have in their young lives. I am reminded,

though, that Abraham Lincoln once said I am not concerned that

you fall, I am concerned that you rise; and you certainly have by

picking yourself up and dusting yourself off, and through determination and perseverance have been a huge success in the private

sector, and we wish you well.

I have some questions, as do some of the other committee members, but Senator Murkowski from Alaska has joined us.

Did you have any kind of opening statement before I proceed

with questions?

Senator MURKOWSKI. Thank you, Mr. Chairman.

STATEMENT OF HON. LISA MURKOWSKI, U.S. SENATOR FROM

ALASKA

Senator MURKOWSKI. If I can just make a small statement and

comment, I am not going to be able to stay, so if it can be just

brought up now.

Mr. Anderson, I appreciate hearing your personal story of opportunity and hope. And as the chairman has indicated, you serve as

a wonderful role model and good example. You speak of the hardships that Native Americans have, but the opportunities that can

present themselves if you believe, and I appreciate your sharing

that with us this morning.

As you know, in my State of Alaska we have some very serious

challenges that face our native people. You mentioned some of the
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problems associated with alcohol and drug abuse, suicide rates, and

fetal alcohol syndrome. We are not unique in our State with these

problems. I think we are unique, however, with the extent to the

problems. And so as we deal with the challenges, we look forward

to working with you on that.

I would like to take an opportunity to call your attention to a

program that would deserve your immediate attention in your new

role, and that is the Indian Reservations Road Program. We had

heard testimony several months back from Loretta Bullard, who is

the executive director of Kawerak, one of our regional tribal consortia in Alaska. And Loretta had expressed some concerns with regards to the road inventory, the real inventory of Indian reservation roads in Alaska. And what passes for the Alaska inventory is

grossly inadequate. Second, she indicated that the Bureau is arbitrarily rejecting requests from the Alaska tribes to add road miles

to the inventory. We will certainly make available to you a copy of

Loretta’s testimony if you have not already read it.

But I would urge you to really take an opportunity to get a handle on the Indian reservation roads program to make sure that the

benefits of this program are equitably enjoyed throughout Indian

country. I know that there are other tribes that are equally concerned about it and about the management, and would hope that

you would be able to take a fresh look at it.

And having said that, Mr. Anderson, I commend you for your

willingness to take on this significant challenge, and wish you a

speedy confirmation.

Mr. ANDERSON. Thank you.

The CHAIRMAN. Well, Dave, you just heard your first problem,

and we haven’t even voted on your nomination yet.

Senator MURKOWSKI. I wanted to take the opportunity there.

The CHAIRMAN. If you can solve those, I think we may build a

statue to you, I tell you.

Well, anyway, let me ask a few and then I will turn to Senator

Inouye.

You have had some wonderful successes, and you know the tribes

face many obstacles. You have worked with your own tribe, who is

a rather successful tribe. From the tribes’ perspective, what do you

believe are the most pressing issues that you would like to address

once you are confirmed?

Mr. ANDERSON. Well, I think every tribal government has a list

of important issues, of which I look forward to being able to go out

and meet with tribal representatives or tribal leaders. I think,

though, from my own standpoint, I believe there are two areas that

I can really impact today, and that is the youth of our native lands.

I also feel that I can also provide some guidance in the areas of

economic development. I really believe that it isn’t just developing

programs where we can build buildings, fill our buildings with inventory, and then hang signs and then open them up for business

that is going to allow us to be successful. I think we need to address the mental health of our people so that we have young Indian

people growing up with the belief that they can achieve, that they

can be successful in business, because a lot of times when we are

out there pressing the needs for economic development, we take

people who come from disparity and from touch economic condi-
12

tions, and many times these people don’t even believe that they can

be successful.

So I feel that a lot of the problems that we face today can be resolved as a group, as a whole, if we were to take a positive approach, that we start becoming solution-conscious, not problem-conscious; that all of us working together can overcome the things that

we have been faced with in the past. And I believe that is what

this American dream is all about, because in my own life, when I

was blameful of other things, when I was blameful of my heritage,

that is when I had the toughest time. But once I took responsibility

for myself, then I started to realize that I was able to hold my future in my own hands, and by working hard and by believing positively things were able to turn around.

So I believe that if I can serve as a role model to Indian country,

I really believe that we can approach the things that are against

us with a positive attitude and we can overcome those things. I

have seen tremendous success in the last few years by a number

of tribes that have taken positive approaches, and they have resolved some tough things, so I really believe those are important

issues that we need to take a look at, Senator.

The CHAIRMAN. You have had just a wonderful success in job creation, which is really important with all tribes now. Some of tribes

have unemployment rates of 70 percent or higher. I don’t know of

any that have less than 40 or 50 percent. But one of the problems

I think we have faced over the years, you know, in the last 100

years many tribes have become what I call in a position of forced

dependency; they lost their traditional ways and, little by little,

they were forced to be more and more dependent on the Federal

Government for help. And sometimes I think that has created the

attitude on reservations that the way of job creation is that you get

a Federal grant and that creates jobs. You have proven the private

sector way of the free enterprise system and certainly proved it

works well, that it is not the Government that creates jobs, that

really the best jobs are created in the private sector.

I note in the notes I have, too, that you have had some experience negotiating gaming compacts and are, in fact, an investor in

a gaming business. Could you share with the committee your views

on gaming as a development tool? Some are not doing well, as you

know, in gaming; some are doing very well and have learned how

to diversify and use some of the profits for other job creation. Tell

the committee your views on it.

Mr. ANDERSON. Well, as you said, I think some tribes are doing

very well and some tribes are still struggling, even though gaming

is part of their economic opportunity. Gaming is like any other

business opportunity, you need to have positive goal-driven thinking people in there running it; you need to be in a place of good

location for it to be successful. But like anything else that we are

faced with in Indian country, I believe that we have to manage

those resources appropriately, and hopefully that it isn’t that we

don’t take this gift that we have been blessed with in the last few

years and let our people have an easy way.

I think that gaming is only an opportunity that should be used

as a stepping stone, and that as tribes we need to use it as a beginning, as a developing point so that we can go on and invest in other
13

areas. I think my own life, like most young native people, gaming

was one of my only opportunities, and once I was involved in it,

I also realized, though, that wasn’t exactly where I wanted to have

my sons think that is all where I hung my hat in life, and so I

went out and diversified and became successful in the restaurant

business.

But I think as tribes, you know, when I have talked to other Indian people and I asked them about what they would like to grow

up to be, they would tell me that they would like to get out of

school and then go to work in the casino. And hopefully today I

hope that we can change that around so we can get our young people to say that I would like to learn how to be an accountant and

work in that casino, or I would like to learn how to be a cook and

work in that casino; but that we would actually use these opportunities to learn meaningful occupations, meaningful vocations that,

if gaming was no longer around, that we would learn the difference

between employment and employability.

So today I think that gaming has presented an opportunity to

our tribes that we have never had before. I have seen tribes that,

prior to gaming, such as the Mille Lacs Tribe, which I worked with,

were very dependent upon the Federal Government, had substandard school systems, but today they have flourished. They have

wonderful school systems, they have built hospitals and clinics,

they have built a wonderful infrastructure and really have become

a very meaningful part of the community.

So I think that, to answer your question, that gaming has provided an important opportunity, but it is an opportunity that

should only be used as a stepping stone.

The CHAIRMAN. Thank you. I happen to be a supporter of Indian

gaming, as a vehicle for job creation and a number of other things.

Let me maybe talk about that or ask you about that a little bit.

From 1991–95 you were the vice president of Grand Casinos and

are still a shareholder in a gaming company called Park Place Entertainment, is that correct?

Mr. ANDERSON. I was one of the original founders of Grand Casinos. I did leave that company back in, I believe, 1995 or 1996. I

am no longer involved in that company. The shares that I hold are

in Park Place Entertainment, but I will assure you, as I have met

with the Ethics Committee, that I will be disposing of those shares

upon my confirmation. And regarding any of those matters, I have

also told them that I would recuse myself from any decisions regarding them.

The CHAIRMAN. And the Ethics Committee explained pretty carefully to you about any potential conflicts of interest?

Mr. ANDERSON. I have been very well aware of that.

The CHAIRMAN. Thank you.

All right, I would like to ask Senator Inouye if he has further

questions.

Senator INOUYE. Mr. Anderson, as you have eloquently pointed

out, a matter of major concern in Indian country is the loss of hope

by the young, the loss of self-identity and the loss of pride. Your

stories of success and of failure, and how you dug out from failure

into success again, should serve as an inspiration for many of these

young men and women, but we have other problems that go slight-
14

ly beyond that, such as sovereignty and trust reform. A matter of

major concern to this committee at this moment is trust reform,

and a question evolves around should we use moneys from other

activities in Indian country to fund this trust reform, or should we

use new money from the general treasury to fund trust reform. Do

you have any thoughts on that?

Mr. ANDERSON. Senator, at this point in time I am aware of the

issues; however, I am not really totally familiar with all the facts

that surround this subject. But I can assure you that I will be

working with you and your staff and this Senate committee to decide what is the best avenues for that. So I respectfully, at this

time, it would be best for me not to say too much.

Senator INOUYE. You need not be apologetic. We have been working on this for nearly 100 years, and we are still looking for this

elusive answer, but we will find it somehow.

The other question is the general concept of sovereignty, which

is immensely important to Indian country. Once you lose sovereignty, the Indian identity disappears. And I hope that we can

work together to do whatever we can to protect Indian sovereignty.

Mr. ANDERSON. Well, in my mind we never lose sovereignty. We

may have it taken from us, but as America’s first people, I will assure you that I am a supporter and I feel that I will do everything

in my power to protect the sovereignty that as native people that

we have always had.

Senator INOUYE. Thank you very much, Mr. Anderson.

Mr. Chairman, any time you are ready, I am ready.

The CHAIRMAN. Senator Thomas, did you have any questions before we go on?

Senator THOMAS. Well, I am about ready too. Certainly all of us

would agree with the concepts you talk about, causing people to

have more hope and more interest. But you are going to be running

a bureau, a bureaucracy, and you are going to be talking about specifics. What do you think are the most important kinds of changes

you could make in BIA, for example, to bring about the things you

talk about?

Mr. ANDERSON. Well, I think I have been successful in my business career because I have understood right from day one that it

doesn’t matter what I do in the home office, what really matters

is what happens out there in the restaurants. The people that are

belly-to-belly with the customers are the most important people in

any organization. And I think that, being successful in business,

one of the things that I will be bringing to this position is communication. I will be out in the field working with tribal leaders; I will

be out in the field working with the 10,000-plus BIA employees.

And it is really these people that know more about what is going

on out there than I ever hope to be, so I look forward to not only

working with the Senate Committee on Indian Affairs, but also Indian organizations that are throughout Indian country, and with

the various tribal organizations and tribal leaders, and being able

to communicate with them. So hopefully through communication

we can better understand on all sides the issues that we are faced

with.

Senator THOMAS. Well, I certainly agree, in that you are going

to have a great number of different reservations and different
15

groups to deal with, all of whom have some different ideas. For example, irrigation and water development in the west is very critical

to the reservations that depend on natural resources for their economy. But we talk about all the success, but there aren’t opportunities on many of the reservations, and many are reluctant to leave

the reservation, so, you know, your experience has been pretty

unique, and you are going to have to deal with lots of folks who

are less willing to take those chances than you have been. And so

I certainly wish you well. I agree with your concept, but it is going

to have to be more than a concept; you are going to have to put

it into place with many other people assisting in order to have an

impact.

Mr. ANDERSON. Well, I am hoping that the tribes support me.

This is something that I can’t do myself, and something that, you

know, a long time ago, when I started to work on who I was, one

of the things I realized was that I had to get done being full of

Dave Anderson. If things were going to be different, I needed to

ask for help. And so I have no problem being able to ask for help

on things that I am not familiar with.

Senator THOMAS. I think that is very important also. When we

talk about wanting to move to certain areas, it seems to me in

order to do that you have to kind of clarify what you think the reasons are that hasn’t happened. So I wish you well and certainly

look forward to working with you.

Mr. ANDERSON. Thank you, Senator.

The CHAIRMAN. Thank you.

[Whereupon, at 11 a.m., the committee proceeded to further business.]

(17)

APPENDIX

ADDITIONAL MATERIAL SUBMITTED FOR THE RECORD

PREPARED STATEMENT OF AUDREY BENNETT, PRESIDENT, PRAIRIE ISLAND INDIAN

COMMUNITY

Good afternoon Mr. Chairman and members of the committee. My name is Audrey

Bennett, and I’m president of the Prairie Island Indian Community. We are a Minnesota tribe located along the banks of the Mississippi River, in the southern part

of the State.

It is an honor to be here on behalf of our tribal council and tribal membership

to speak in support of President Bush’s nomination of David Anderson to the position of assistant secretary, Bureau of Indian Affairs.

In addition to serving our tribal community as its president, I am treasurer of

the National Indian Gaming Association and the immediate past chair of the Minnesota Indian Affairs Council. I have been involved in tribal politics much of my

adult life and I know full well the challenges we as native peoples face in this country.

Our cultures are eroding with the passing of time. Land issues threaten our

senses of community and many tribes continue to struggle for economic development

capable of sustaining their governments. And many of our children are not getting

the education they need to succeed in this world, while others are succumbing to

today’s most sinister social ills.

The BIA, for all its faults, remains a critical resource for addressing and helping

meet these challenges. As such, the BIA is deserving of leadership that reflects its

significance and the magnitude of the challenges at hand. We believe Mr. Anderson

can satisfy this role and we fully support his nomination.

Throughout his life, Mr. Anderson has pursued the American dream for his family

and his people. Along the way he has experienced numerous personal and professional setbacks, but they only sharpened his resolve. In this way his life is quite

similar to the struggles and triumphs of Indian people throughout this country. He

is a testament to what can be accomplished through hard work and dedication and

he is an inspiration to our young people.

As a Minnesota tribe, we have witnessed many of Mr. Anderson’s accomplishments. We have seen first hand his commitment to improving the lives of Native

Americans on and off the reservation. To this day he can be found offering guidance

to Native American teens at the Life Skills Center for Leadership in Minneapolis,

an organization he founded and helps finance.

His work in tribal gaming helped build the foundations on which a number of

tribal communities throughout the country now are beginning to thrive, including

the Mille Lacs Band of Ojibwe and the Lac Courte Oreilles Tribe where he is an

enrolled member and a former CEO. His success with the Lac Courte Oreilles was

heralded by President Reagan’s Commission on Indian Reservation Economies.

As an entrepreneur, Mr. Anderson has demonstrated a keen insight for business,

substantiated by his more than 80 Famous Dave’s restaurants spanning some 20

States. Today, in Minnesota and in many other places, his is virtually a household

name.
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Mr. Anderson also is no stranger to public policy. He is a graduate of Harvard

University’s Kennedy School of Government. And he has served in numerous public

service positions, including the Wisconsin Council on Minority Business Development, the National Task Force on Reservation Gaming, the Advisory Council for

Tribal Colleges and Universities, and, most recently, the American Indian

EducationFoundation.

In a recent editorial, the St. Paul Pioneer Press described Mr. Anderson as a generous man, giving of his time and his fortune to help young native people and the

broader community.

That same editorial also questioned his thinking for wanting to take, what the

paper described as one of the most challenging and complicated jobs in Washington.

Perhaps it is rare to find someone with Mr. Anderson’s blend of real world experience, education and desire to do good who is willing to take on what some believe

is an impossible assignment.

There is no question that leading the BIA is a formidable task, but it is not insurmountable—it can’t be because there is too much at stake if we allow it fail.

As a Washington outsider, we believe Mr. Anderson will bring a fresh perspective

to numerous issues that have plagued the BIA for decades and relieve a source of

frustration for tribes and numerous administrations alike.

Mr. Anderson is worthy of this opportunity and capable of meeting the enormous

challenge before him. We urge you to accept his nomination and confirm him to the

position of assistant secretary, Bureau of Indian Affairs.

Mr. chairman, members of the committee, thank you for this opportunity to testify

in support of Mr. Anderson’s nomination.

PREPARED STATEMENT OF LOUIS TAYLOR, CHAIRMAN, LAC COURTE OREILLES BAND

OF LAKE SUPERIOR CHIPPEWA INDIANS

Ladies and Gentlemen: My name is Louis Taylor. I am the tribal chairman of the

Lac Courte Oreilles Band of Lake Superior Chippewa Indians. Accompanying me is

Lac Courte Oreilles tribal vice chairman, Russell Barber, and Alfred Trepania. Mr.

Trepania serves as president of the Great Lakes Inter-Tribal Council. The Great

Lakes Inter-Tribal Council is an organization comprised of 11 member tribes of

which Lac Courte Oreilles is a member. The organization’s purpose is to assist its

member tribes with preserving tribal sovereignty and achieving self-sufficiency and

self-determination. Mr. Trepania is also a Lac Courte Oreilles tribal member and

a former tribal chairman.

The Lac Courte Oreilles Tribe is located in Northwestern Wisconsin near the

Town of Hayward in Sawyer County. Our reservation is comprised of approximately

74,000 acres with the tribal membership at 5,531. Lac Courte Oreilles has the third

largest membership of the 11 tribes in Wisconsin.

Some of the services the Lac Courte Oreilles Tribe provides its community include

a Head Start Program, K-12 School System, Community College, Road Construction

and Maintenance, Fire Department, EMT Service, Social Services, Emergency Shelter, Halfway House, Public Radio Station, Medical Services, Elderly Nutrition Sites,

and Youth Centers.

Additionally, the Lac Courte Oreilles Tribe owns and operates a Cranberry Marsh,

Grocery Store, Gas Station, Resort, Construction Company, Casino, and Credit

Union.

Although we have made some great accomplishments in recent years, largely due

to a modest gaming establishment, there are still areas of significant need on the

reservation. The family per capita income on the reservation in 1999 equaled

$24,600 per year with the tribe’s seasonably adjusted unemployment rate at 20 percent. With over 20percent of the children on the reservation living in poverty, there

is still plenty to do and we are constantly looking for new areas of economic development.

Contrary to popular belief, our tribe and many other tribes do not distribute per

capita payments to its members as we are almost always operating with a budget

deficit and rely on grant moneys in order to provide basic services and jobs for our

tribal members. Even with our ongoing challenges, there has been steady growth

at Lac Courte Oreilles and we will continue our efforts for the benefit of our tribal

members and generations to come.
19

The Lac Courte Oreilles Tribal Governing Board is the governing body of the

Band and I as chairman, am pleased that David Anderson has been nominated by

President Bush to serve as the U.S. Department of the Interior’s Assistant Secretary

for Indian Affairs. I am extremely proud that a tribal member of Lac Courte Oreilles

has been nominated to serve the tribal governments and the United States in this

important position.

I am honored to be here today and would like to thank Chairman Ben Nighthorse

Campbell and the U.S. Senate Committee on Indian Affairs for the invitation to

speak.
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