local support organizations. Below are a set of locations and dates. Information and registration
will be available on the CDFI Fund’s website in the coming weeks.

WORKSHOP LOCATIONS AND DATES
June 28, 2011
Hyatt Regency Phoenix
Phoenix, AZ

July 19, 2011
San Diego Mission Valley Marriott
San Diego, CA

July 21, 2011

Portland

Courtyard Hotel Portland Airport
Portland, OR

August 30, 2011
Crowne Plaza Hotel
Billings, MT

September 20, 2011
Hilton Garden Inn Bangor
Bangor, ME

September 22, 2011
Lake of the Torches Convention Center
Lac du Flambeau, WI

If you have any questions regarding these issues or other questions regarding Treasury’s tribal
consultation process, please do not hesitate to contact us at tribal.consult@treasury.gov. Or you
may call 202-622-2220 and ask for me, Aaron Klein. I serve as Treasury’s point of contact on
tribal consultation issues.

Sincerely,

Aaron Klein, Deputy Assistant Secretary for Policy Coordination
U.S. Treasury Department, Office of Economic Policy


government or a person described in section 3402(t)(2)(E).

In addition, the IRS continues to partner with tribal governments to establish Volunteer Income Tax
Assistance (VITA) sites in their local communities. The VITA program has a three-pronged approach
which includes Financial Education and Asset Building, Tax Education and Tax Preparation. The Tax
Preparation goal is to provide free tax preparation service for low to moderate income taxpayers. During
2011, the IRS expanded partnerships with tribal organizations and coalitions of tribal governments that
share knowledge and resources to prepare free tax returns in their local communities.

Office of Financial Stability

http://www. financialstability.gov

The Troubled Asset Relief Program, Public-Private Investment Program, and Community Development
Capital Initiative Program (TARP, PPIP, and CDCI) were established under the Emergency Economic
Stabilization Act of 2008 (EESA). Under ESSA authority, Treasury contracted with large, established
financial management institutions to evaluate and manage portfolios of troubled assets.

¢ Treasury contracts strongly encouraged PPIP fund managers to establish sub-contracting relationships
with leading small, veteran-, minority-, and women-owned financial services businesses. The Los
Angeles private-equity fund Oaktree Capital Management LP (Oaktree), one of Treasury’s primary
PPIP contractors, sub-contracted with Inupiat Eskimo-owned Arctic Slope Regional Corporation (Arctic
Slope). Oaktree partners and consults with Arctic Slope in investment decisions.

e CDCI, a separate component of TARP, invests lower-cost capital in specified CDFls that lend to small
businesses in the country’s hardest-hit communities. Through CDCI, certified NACA CDFIs
(described above) may be eligible to receive capital investments at a dividend rate of 2 percent for eight
years.

United States Mint
https://www.usmint.gov
http://www.usmint.gov/mint_programs/nativeamerican/

The Mint’s Citizens' Coinage Advisory Committee discusses and reviews candidate designs for coins and
currency, and the Department of Treasury makes the final design selections. The Mint consults with Native
American and Alaskan Native tribes on the design of coins and currency when indicated. Starting in 2009,
the United States Mint minted and issued $1 coins featuring designs commemorating the contributions
made by Native American tribes and individuals over the course of United States history.

The program was created by the Native American $1 Coin Act (Public Law 110-82), which was signed into
law in 2007. The law requires that at least 20 percent of $1 coins minted and issued in a given year must be
Native American $1 coins. In keeping with the design of the Sacagawea coin first produced in 2000, the

14


consultation practices, regular schedules for consultation meetings during regional conferences,
and a dedicated staff. Examples of each approach are attached in Appendix D. The POCTC is
expected to maintain examples that Bureaus and Offices may review when revising their own
consultation guidelines.

Treasury-Wide Policy on Tribal Consultation: The tasks undertaken by different Treasury
Offices and Bureaus are complex and varied. Findings during internal and external review of the
Treasury Department’s current tribal consultation practices are consistent with this view.°
Therefore, the Treasury Department does not prescribe a single, uniform approach to tribal
consultation. Rather, each Office and Bureau is responsible for maintaining a well-defined set of
procedures to achieve the following core objectives.

= Timely identification of matters that may require tribal consultation, to include regulative

and legislative activities that fall within the span of Bureau and/or Office operations as
well as direct program responsibilities

= Timely process for determining whether consultation is required, to include timely notice
to the POCTC on non-routine issues of importance regarding legislative activities,
regulations, and administrative practices that may require tribal consultation. The
POCTC is also available for advice on the consultation process as needed

= Ongoing, pro-active tribal consultation processes, to include early outreach to solicit
comments from tribal governments and members who may be substantially affected by

changes in laws, regulations or policies under consideration, when it has been determined
that consultation is required by EO 13175. Outreach should incorporate an open process
through which tribal governments may pro-actively consult with the Treasury Bureau or
Office, on a government-to-government basis, regarding matters that involve tribal and
Federal law regulations, and administrative practice.

Each Treasury Office and Bureau is expected to identify consultation procedures to meet the core
objectives listed above. These core objectives are discussed below in greater detail.

Timely identification of matters that may require tribal consultation

Program and/or legislative staff in each Treasury Office and Bureau are responsible for
identifying pending legislation and regulations that may disproportionately affect tribal
governments and members.

= Explicit criteria consistent with the mandate of the Bureau or Office should be developed
and made clear to program and legislative staff, and to points of contact in the appropriate
Office of the General Counsel. Documents describing these criteria should be forwarded
to the POCTC as they are completed.


Growing Economies in Indian Country:

Taking Stock of Progress and Partnerships
Courtyard Portland Airport Hotel
July 21, 2011

9:00 a.m. Welcome & Opening Prayer

9:05 a.m. Welcoming Remarks
Aaron Klein, Deputy Assistant Secretary on Economic Policy, U.S. Treasury Dept.

9:10 a.m. Local Perspective: Economic Development in Indian Country
Michael Dickerson, Executive Vice President, Enterprise Cascasdia
Jim Stanley, Senior Vice President, Enterprise Cascadia

9:20 a.m. Facilitated Discussion of Regional Challenges & Opportunities
Moderated by: Craig Nolte, Federal Reserve Bank of San Francisco

10:15a.m. Break

10:30 a.m. Continued Discussion on Regional Challenges & Opportunities
Moderated by: Craig Nolte, Federal Reserve Bank of San Francisco

11:00 a.m. Panel Discussion: Strategies in Economic Development

Ted Piccolo, Executive Director, NW Native Development Fund
Mike Burton, Director, Affiliated Tribes of Northwest Indians
Tom Hampson, Executive Director, ONABEN

Moderated by: Bryan Mercier, Board Member, ONABEN

12:00 p.m. —_ Lunch (provided)

1:00 p.m. Exploring Federal Resources Town Hall
Michelle Sauve, ANA.

Rodger Boyd, HUD
Ruth Jaure, CDFI Fund
Moderated by: David Scherler, CDFI Fund

1:45 p.m. Break

2:00 p.m. Exploring Federal Resources Town Hall
Vicki Walker, USDA

Richard Manwaring, EDA
Gina Eastman, IEED
Moderated by: David Scherler, CDFI Fund

3:00 p.m. Next Steps, Development of Task Forces

3:30 p.m. Closing Remarks

200 p.m. Formal Adjournment — Resource Rooms for additional time as needed

@EDA@ES



Endnotes

? The workshop schedule is available at a link titled “ITG Education and Training,” at the left of the ITG web site
http://www. irs.gov/tribes/index.html .

3 The workshop schedule, including links to registration sites, is posted at
http://www.cdfifund.gow/news_events/CDFI-2011-08-201 1-Native-Economic-Development-Workshop-Series-

Open-for-Registration.asp .

“See: http:
copy of EO 13175.

5 For example, the Treasury Financial Crimes Enforcement Network (FinCEN) guidance to gaming organizations is
highly specialized, and it directly targets a relatively small number of organizations. Therefore routine requests for
comments and guidance that includes brief mention of Indian gaming activities is often sufficient to fulfill EO
13175. For example, see FIN-2990-G004, “Frequently Asked Questions, Casino Recordkeeping, Reporting and
Compliance Reporting Requirements, September 30, 2009, extracted 070110 from.
http://www.fincen.gov/news_room/nr/html/19960222.html ,

6 Brief descriptions of relevant activities in Treasury Offices and Bureaus are provided in Appendix B.

7 If agency regulatory policies have tribal implications (defined in Section 1 (a) of EO 13175 and the outset of this
document), then under Sections 5(b)(2)(B) and 5(c)(2) of EO 13175 the Director of OMB should be provided, in the
preamble to Federal Register announcements regarding regulations, a description of the agency’s prior consultation,
a summary of the nature of tribes’ concerns, the agency’s position supporting the need to issue the regulation, and a
statement of the extent to which the concerns of tribal officials have been met.

5 Under Section 4 of EO 13175, “Agencies shall not submit to the Congress legislation that would be inconsistent
with the policymaking criteria in Section 3”

° Strictly speaking, under EO 13175, consultation may proceed with authorized inter-tribal organizations. However,
in initial consultation with tribal leaders during the spring of 2010 many stressed the importance of direct
communication with tribal officials and argued explicitly that consultation with inter-tribal organizations is not
sufficient. Therefore the Treasury Department recommends direct outreach whenever practicable.

'° This information will provide the basis for annual reports that the Treasury Department is required to submit to
OMB under EO 13175.

" See FAQs for Indian Tribal Governments regarding Title 31 (Anti-Money Laundering), posted at:
:// www. irs.gov/govt/tribes/content/0,,id=108293,00.html . For earlier background see “Anti-Money Laundering

Controls for Indian Tribal Casinos,” February 22, 1996. http://www.fincen.gov/news_room/nr/html/19960222.html .

18


Fund had been invested by Treasury in obligations of and guaranteed by the United States. In addition,
Treasury is required on the first day of FY 2012 and of each FY thereafter to transfer the interest earned by
the Fund during the preceding FY to Interior for distribution to the CRST for statutorily authorized

purposes.

Community Development Financial Institutions Fund
http://cdfifund.gov/what_we_do/programs_id.asp?programID=3

The Community Development Financial Institutions Fund (CDF), established in September 1994 under
the Riegle Community Development and Regulatory Improvement Act (RCDRIA), sponsors Native
Initiatives designed to increase access to credit, capital, and financial services in Native Communities.
These initiatives serve to create and expand CDFIs primarily active in Native Communities. The RCDRIA
mandated that the CDFI Fund conduct a study of lending and investment practices on Indian reservations
and other lands held in trust by the United States. This study recognized barriers to private financing,
identified the impact of such barriers on access to capital and to credit for Native peoples, and provided
options to address these barriers.

CDFIs are non-government financial entities whose primary mission is to promote community
development, principally by serving and being accountable to a low-income community, and by providing
development services. To be certified as a Native CDFI an organization must meet the CDFI eligibility
requirements and direct more than 50 percent of its activities to Native communities and/or Native persons.

Following the November 2001 release of the CDFI Fund’s Native American Lending Study, the Fund
formulated two chief strategies for overcoming barriers to credit, capital, and financial services in Native
Communities:

¢ Expanding Native Opportunities (ENO), training programs that work to develop new Native
CDFIS, strengthen existing Native CDFls, and assist Native CDFs in creating financial education
and asset building programs in Native Communities.

¢ The Native American CDFI Assistance (NACA) Program, a funding program that aims to increase
the number and capacity of existing or new Native CDFls.

In July 2009, the CDFI Fund also released its Native Initiatives Strategic Plan for Fiscal Years 2009-2014,
which was designed following a review and analysis of the Native American Lending Study, feedback from
listening sessions conducted in fiscal years 2007 and 2008, and trends and data analysis from the NACA
Program applications and awards since fiscal year 2004. Contingent on funding and resource availability,
the Strategic Plan will guide the CDFI Fund’s implementation of its Native Initiatives over the next five
years.

10


organizations does not constitute consultation on a government-to-government basis under EO
13175, in most instances.?

Methods of Consultation: Each Office and Bureau may develop its own method of consultation,
following the guiding principles above. The POCTC will maintain a record of the Treasury’s
consultation efforts and will make available to the Office or Bureau descriptions of various
methods that have been used in the past. The POCTC will assist the Office or Bureau in
developing a consultation plan. Consultation plans may include, but are not limited to the
following.

Federal Register notices soliciting comment on the proposed idea. FR notices requesting
comments from tribal governments and members regarding proposed changes in law or
regulation should be published as soon as practicable after Treasury staff have
determined that tribal consultation is necessary, and ideally within 30 days. When tribal
consultation is indicated a 60- to 120-day minimum comment period should be specified
in the FR notice whenever practicable, to allow sufficient time for tribal leaders to
consult with their members and legal counsel on any matters of particular concern, and to
formulate a response to the notice.

Copies of all FR notices requesting comments from tribal governments and members,
together with brief descriptions of other tribal consultation activities, should be sent to the
POCTC to become part of a comprehensive record of Treasury activity.'°

Meetings, conference calls, videoconferences and workshops to encourage and exchange
of views. When Treasury policies explicitly target Native American and Alaskan Native
governments, organizations and members, or when the issue is complex with a
disproportionate effect on tribes and tribal members, consultation should extend beyond
FR notices to the extent practicable. Consultation may be conducted through email,
regular mail, telephone calls, video conferences and in-person meetings or conferences,
as schedules and resources permit. Disparities in time zones and travel costs should be
taken into account when scheduling phone calls and conferences, noting that Alaskan
Native tribes are located to the extreme west.

Targeted outreach. Contact information for Federally-recognized tribes is available on
the BIA web site.'! The POCTC also maintains a Treasury-specific list, including contact
points for some inter-tribal organizations. These organizations often sponsor conferences
attended by leaders and officials from many tribes. These conferences therefore may



= Indicators of disproportionate effects on tribal governments and members will be specific
to each Treasury Office or Bureau. Illustrative examples are suggested in Appendix B.
Offices and Bureaus are encouraged to revise or replace these examples, as appropriate,
so that they may be used by program staff and legal counsel to identify issues within their
program mandate that are likely to require tribal consultation. For examples of recent
practices, see Appendix C.

Timely process for determining whether consultation is required

Each Office and Bureau is expected to comply with EO 13175, and to initiate consultation at the
earliest stage possible. In general, program or legislative staff in each Treasury Office and
Bureau should inform the POCTC regarding pending legislation, regulations and/or
administrative practices that may require tribal consultation. In keeping with EO 13175, Offices
and Bureaus are asked to document tribal consultation in the preamble to Federal Register
notices regarding agency regulations that have tribal implications.” Similarly, Treasury
Department legislative proposals that have tribal implications should not be submitted prior to
tribal consultation.®

The POCTC is available to assist Treasury Bureaus and Offices in the identification of laws,
regulations, and administrative practices that require tribal consultation, if the application of the
requirements of EO 13175 is questionable in the view of program staff. In such cases the
POCTC will respond to the inquiry within 15 days. If the POCTC and Treasury Bureau or
Office subsequently agree that consultation is required, consultation should be initiated within 30
days. If the POCTC and Treasury Bureau or Office disagree on the need for tribal consultation,
the question will be referred to GC

To ensure that EO 13175 is followed, ES and GC shall ask each Office or Bureau, at the earliest
stage that it becomes apparent an activity might require consultation, whether or not a
consultation decision has been made. If the associated clearance documents do not indicate
explicitly that tribal consultation is completed, planned or under way, then whenever practicable
GC, LA and/or ES will return the documents to program staff for clarification and alert the
POCTC to the potential need for consultation. In some cases time constraints may require a
staged approach, in which a plan for more extensive tribal consultation is identified and a
commitment is made to consult within a specified time frame.

Ongoing, Pro-Active Tribal Consultation Process

Target Audience: Treasury Bureaus and Offices should consult directly with tribes and tribal
governing officials on matters that disproportionately affect such tribes and officials. When it is
appropriate and useful, inter-tribal organizations representing the interests of tribes in Indian
Country should be consulted as well. However, consultation with tribal governments, through
tribal leaders and officials, is required. Reliance solely on discussions with inter-tribal

6


From: TRIBAL.CONSULT

Sent: Monday, May 16, 2011 6:04 PM

To: TRIBAL.CONSULT

Subject: U.S. Treasury Department, Tribal Outreach Update and Consultation Request

Dear Tribal leader and other interested individuals,

I would like to update you about several new developments and ongoing issues within the
Treasury Department that may be of interest to you, and to seek your input in keeping with our
tribal consultation process.

First, the Treasury Department announced its intention to create a Federal Advisory Committee
on Insurance. This is one in a series of steps that Treasury is taking to establish the new Federal
Insurance Office (FIO) created under the Dodd-Frank Wall Street Reform and Consumer
Protection Act. The Committee will provide advice to the FIO and the Treasury Department,
including to the FIO Director in the Director’s role as a member of the Financial Stability
Oversight Council (FSOC). Half of the Committee’s membership has been reserved for state
and tribal insurance regulators. A Notice of Establishment of the Federal Advisory Committee
on Insurance was printed in the Federal Register. The Notice seeks applications for membership
on the Committee. The application period will be open for 15 calendar days from the date of
publication in the Federal Register, which would create an application deadline of May 31. For
more information on how to submit an application to be considered to serve on this Committee,

read this press release.

Second, as many of you are aware, Treasury submitted a progress report on its tribal consultation
policy to the Office of Management and Budget (OMB). This report

was issued in response to President Obama’s Memorandum on Tribal Consultation, which
required each agency head to submit a progress report on tribal consultation issues. Treasury is
officially releasing this report to the public and it can be found on our Tribal Policy web page.

Finally, the Community Development Financial Institutions Fund (CDFI Fund), along with other
Federal agencies, will launch a new economic development series: Growing Economies in
Indian Country: “Taking Stock of Progress and Partnerships." The workshops, co-sponsored
with the Federal Reserve Board of Governors, are being conducted to promote economic
development in Native American communities across the country. Participants will learn about
resources available for economic development initiatives from the Federal government and
regional programs.

The overall objective of this workshop series is threefold:
Identify existing challenges to economic development in Indian Country;
Identify best practices and solutions that address challenges;
Discuss and learn about Federal and regional economic development initiatives and
programs that aid tribal governments in their overall economic development plans.

The CDFI Fund and Federal Reserve staff will facilitate day-long workshops, featuring various
Federal agencies and industry experts. Participants will be able to attend seminars on designing
successful economic development strategies while networking with regional practitioners and


Appendix B: List of Programs in Various Treasury Offices and Bureaus that are Actively Involved
in Issues affecting Tribal Governments and Members

Comptroller of the Currency

http://www.occ.treas.gow/Cdd/Nativeam
http://www.occ.treas. gov/topics/community-affairs/resource-directories/native-american/index-native-

american. html#gi °

The Office of the Comptroller of the Currency (OCC) is reviewing its process independently.

Bureau of the Public Debt Treasury Departmental Office for Financial Markets
http://www.publicdebt.treas.gow/
http://www.treasurydirect.gov/govt/reports/tfmp/tfmp.htm
http://www.treasury. gov/about/organizational-structure/offices/Pages/Office-of-Financial-Markets.aspx
(new website)

Treasury is required by statute to invest and is investing two Indian tribal funds and one “tribally related”
fund from which payments are being made to several Indian tribes as well as to non-Indian entities. The
two tribal funds currently being invested by Treasury are the Cheyenne River Sioux and the Lower Brule
Sioux Tribes’ Terrestrial Wildlife Habitat Restoration Trust Funds (the “Title VI Funds”). As with the
tribal funds invested by Interior, by statute, Treasury is required to disburse amounts from the interest
earned by the Title VI Funds to the tribes involved as requested for certain statutorily-prescribed purposes.

The one “tribally related” fund that Treasury is required to invest is the Lower Colorado River Basis
Development Trust Fund (LCRBDTF). The LCRBDTF is an Interior fund, which Treasury is required by
statute to invest. Interior determines the amounts to be invested and the maturities of such investments,
which are in Treasury securities.

Treasury consulted extensively with the Cheyenne River Sioux and the Lower Brule Sioux Tribes regarding
Treasury-proposed amendments to the investment and disbursement provisions for their Title VI Funds.
The Treasury amendments were enacted into law in November 2007 and have been implemented. The
amendments require Treasury to review the investment of the funds with the two tribes involved on at least
an annual basis, in addition to providing monthly reports to the tribes on the investment activities of their
funds.

The Office of Financial Markets has been actively engaged in consulting with the Cheyenne River Sioux
Tribe (CRST) regarding the establishment and investment of the Cheyenne River Sioux Tribal Recovery
Trust Fund (the Fund) as of October 1, 2001, as required by P.L. 106-511. Treasury is required to establish
the Fund on that date and to transfer $290+ million, plus an amount equal to the interest that the Fund
would have earned from October 1, 2001 to October 1, 2011 if the $290+ “principal” component of the

9


Treasury Department Progress Report to OMB on Tribal Consultation

The Treasury Department’s consultation plan focuses on issues and regulatory or legislative
activities that have tribal implications. Formally, activities with tribal implications are ones that
have substantial direct effects on one or more Indian tribes, on the relationship between the
Federal Government and Indian tribes, or on the distribution of power and responsibilities
between the Federal Government and Indian tribes. The Treasury Department consultation
process focuses primarily on matters that are likely to have direct and identifiable economic
impacts on Indian tribes, or to preempt tribal law.

Guiding Principles:

In addition to the overarching Fundamental Principles stated in Section 2 of Executive Order
13175 (EO 13175), three principles are guiding our development of Treasury’s consultation
process and policies.!

e The Treasury Department is committed to the establishment of a comprehensive
consultation process leading to meaningful dialogue with Indian tribes on Treasury
policies that have implications for such tribes, and in particular those regulations and
legislative proposals that have a direct and identifiable economic impact on Indian tribes
or preempt tribal law.

e Tribal consultation will assist Treasury’s development of policy, regulation and
legislative activities, as it will increase Treasury’s understanding of the issues and
potential impacts of activities on tribes and American Indians and Alaskan Natives.

e The Treasury Department is committed to developing and issuing regulations and
guidance in a timely and efficient manner.

Agency point of contact:

The agency point of contact for tribal consultation is the Deputy Assistant Secretary for Policy
Coordination in the Office of Economic Policy (hereafter the Point Of Contact for Tribal
Consultation or POCTC). The POCTC relies on the Departmental Office’s General Counsel
(GC), and Executive Secretariat (ES) to identify issues that could require consultation prior to
issuance of Treasury policies. However each Treasury Department Bureau and Office is
expected to undertake tribal consultation in accordance with EO 13175.

Consultation Activity during the Past Year

o Deputy Secretary Neal S. Wolin represented the Treasury Department at the White
House Tribal Nations Conference on December 16, 2010. As a panelist for a
workshop on economic development, Mr. Wolin heard and responded to concerns


In FY2009, awards were made with both ARRA and standard appropriated FY2009 funds. ARRA funded
$8 million in Financial Assistance and Technical Assistance awards to 10 Native CDF ls through the NACA
Program. These awards averaged $800,000 and ranged from $590,000 to $878,000. In addition, standard
appropriated FY2009 funds provided $7.7 million in Technical Assistance and Financial Assistance awards
to 36 Native institutions. The NACA Program itself is not new, but funding and Native participation
increased significantly in 2009 and 2010.

In May 2011, the CDFI Fund also announced an intergovernmental workshop series to promote economic
development in Native American communities. The series is titled Growing Economies in Indian Country:
Taking Stock of Progress and Partnerships, and it seeks to further the efforts of the CDFI Fund and the
Federal Reserve to engage federal partners and local stakeholders in identifying best practices for economic
and community development in Native communities. The workshops focus on three areas — governance
and infrastructure, small business finance, and economic development — and offer an opportunity for
networking and providing feedback on economic development in Indian Country. See

http://www.cdfifund.gov/news_events/CDFI-201 1-08-2011 -Native-Economic-Development-Workshop-
Series-Open-for-Registration.asp

The CDFI Fund Native Initiatives website includes a link to the 2001 Native American Lending Study and
the Native Initiatives Strategic Plan for Fiscal Years 2009-2014.

For an example of FR consultation initiated by CDFI, see March 8, 2010 (Volume 75, Number 44)] CDFI
request for comments. Also see March 11, 2010 (vol 75, No. 47).

Financial Crimes Enforcement Network

http://www.fincen.gov

The Financial Crimes Enforcement Network (FinCEN) typically deals with complex and/or sophisticated
financial matters that affect a small number of well-known constituent groups. Casinos are included in this
category because they are vulnerable to exploitation through money laundering activities. FinCEN staff
working closely with tribally-owned casinos for this reason. FinCEN is part of the inter-agency Indian
Gaming Working Group, which also includes the National Indian Gaming Commission, the Department of
Justice, the Federal Bureau of Investigation, the Internal Revenue Service, and the Bureau of Indian Affairs
Law Enforcement Services.

Financial Management Services

http://www. fms.treas.gov
12


Expanding Native Opportunities is a training initiative sponsoring financial education and asset building
programs that are fully funded by the CDFI Fund and administered by contractors selected through a
competitive bidding process. These programs are:

¢ Native Communities Financing Initiative (NCFI), an intensive series of workshops and follow-up
technical assistance conducted over a 12-month period to help Native Communities develop and
expand Native CDFIs.

e Native Entrepreneur and Enterprise Development Initiative (NEED), which focuses on
entrepreneurship development systems, curricula integration, and program development at the local
level.

e Native Financial Skills Initiative (NFSI), which instructs the trainers in the Building Native
Communities financial education curriculum and integrated asset building programs.

The NACA Program serves economically distressed Native American, Alaska Native, and Native Hawaiian
communities across the nation by providing funding to build the organizational capacity of Certified Native
CDFIs, Emerging Native CDFls, and Sponsoring Entities. As of June 30, 2011, there are 66 certified
Native CDFIs.

The CDFI Fund provides two types of funding through the NACA Program. Financial Assistance awards,
used primarily for financial capital, are available only to entities that have been certified as Native CDFIs.
Technical Assistance grants are available to certified Native CDFIs, Emerging Native CDFls, and
Sponsoring Entities.

e Technical Assistance grants are usually used to acquire products or services including computer
technology, staff training, and professional services such as market analysis, and support for other
general capacity-building activities.

e Sponsoring entities are unique to the NACA Program. They create and support fledgling Native
organizations as they move toward CDFI certification.

On April 30, 2010, the CDFI Fund announced awards totaling $10.3 million to NACA Program participants
in the FY2010 funding round. NACA received 61 applications requesting $23.7 million for the funding
round. Awardees’ primary financing activities are small business/venture capital (23 awardees), affordable
housing (12), and consumer loans (9). In its FY2011 round, the NACA Program received a record number
of applications and experienced a 50 percent increase in both applications and total dollars requested over
the FY2010 round. In total, 88 applications from 24 states in the FY2011 NACA round requested a total of
$35 million in the FY2011 NACA round, up from $23.7 million total requested in the FY2010 round. Of
the FY2011 applications, there were 35 applications for Financial and Technical Assistance (FA/TA) and
53 applications for Technical Assistance (TA) only. FA/TA applicants requested $26.8 million, while TA
only applicants requesting $8.2 million in the FY2011 round.

ll


provide opportunities for agency listening sessions and/or presentations that are cost-
effective from the perspective of tribal governments.”

Open process: An open process should be explicitly identified through which tribal
governments may pro-actively consult with each Treasury Bureau or Office, on a government-to-
government basis, regarding matters that involve tribal and Federal law regulations, and
administrative practice.

¢ Tribal.Consult@treasury.gov. Tribal governments may channel information or concerns
to the Treasury Department email address, Tribal.Consult@treasury.gov, or to the
POCTC. These points of contact may be used only for general information and concerns.
Specific cases involving particular tribal governments and tribal members must be
referred to the Bureau(s) or Office(s) with direct jurisdiction.

= Meetings and workshops. Intra- and inter-agency sponsorship of meetings to address
areas of concern is encouraged, to conserve resource and ensure comprehensive
coverage.



Appendix A: Description of Current Treasury Department Tribal Consultation Process

Guiding Principles: In addition to the overarching Fundamental Principles stated in Section 2
of Executive Order 13175 (EO 13175), three principles guide our development of the Treasury
Department’s consultation process and policies.*

¢ The Treasury Department is committed to the establishment of a comprehensive
consultation process leading to meaningful dialogue with Indian tribes on Treasury
policies that have implications for such tribes, and in particular those regulations and
legislative proposals that have a direct and identifiable economic impact on Indian tribes
or preempt tribal law.

¢ Tribal consultation will assist Treasury’s development of policy, regulation and
legislative activities, as it will increase Treasury’s understanding of the issues and
potential impacts of activities on tribes and American Indians and Alaskan Natives.

e The Treasury Department is committed to developing and issuing regulations and
guidance in a timely and efficient manner.

Agency point of contact: The agency point of contact for tribal consultation is the Deputy
Assistant Secretary for Policy Coordination in the Office of Economic Policy (hereafter the Point
Of Contact for Tribal Consultation or POCTC). The POCTC relies on the Departmental Office’s
General Counsel (GC) and Executive Secretariat (ES) to identify issues that could require
consultation prior to issuance of Treasury policies. However each Treasury Department Bureau
and Office is expected to undertake tribal consultation in accordance with EO 13175.

Consultation: Consultation is designed to strengthen relationships between the U.S.
government and sovereign tribal governments, and to reduce the impact of unfunded mandates
on tribal governments and tribal members to the extent practicable and permitted by law. Under
EO 13175 new legislative proposals, regulations, and administrative practices, including
changes to existing policies, require consultation to the extent that they affect tribal governments
and/or tribal members exclusively or in a significantly disproportionate manner relative to the
majority of U.S. residents, or to the extent that Native Americans and Alaskan Natives are
targeted explicitly by these policies.

Methods and scope. Offices and Bureaus may routinely incorporate tribal consultation into
Federal Register (FR) notices and Department guidance. This process may be sufficient, for
example, when program staff deal exclusively with highly-complex and/or sophisticated
financial matters affecting a small number of well-known constituent groups.° In other cases
Offices and Bureaus that work directly with a variety of tribal governments and tribal members
may develop, in consultation with tribal governments and members, detailed guidelines on tribal

4


program is responsible for minting $1 coins annually that feature an image of Sacagawea on the obverse
side of the coin and designs on the reverse side that change from year to year in celebration of important
tribal contributions. For example, the 2010 Native American $1 coin featured an image of the Hiawatha
Belt with five arrows bound together, while the 2011 Native American $1 coin was emblazoned with the
hands of the Supreme Sachem Ousamequin Massasoit and Governor John Carver. Until at least 2016, the
United States Mint is responsible for preparing a timeline of notable Native American events and personal
contributions that will provide potential designs for the $1 coins. When evaluating these designs, the
United States Mint consults with the Senate Committee on Indian Affairs, Congressional Native American
Caucus, National Congress of American Indians and U.S. Commission of Fine Arts.

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Appendix D: Attached in PDF Format

Agenda for July 21 CDFI/NACA FRB/SF Workshop, Growing Economies in Indian Country:
Taking Stock of Progress and Partnerships.

Federal Register Notice on Formation of Federal Advisory Committee on Insurance, and May
2011 email to tribal leaders

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2001 as required by P.L. 106-511. Assistant Secretary Mary Miller and Deputy
Assistant Secretary (DAS) Gary Grippo met with the Chairman of this Tribe on June
9, 2011. DAS Grippo and his staff will be meeting with the Tribe in Eagle Butte, SD
concerning the Fund on August 17, 2011.

o The IRS ITG Director participated, on April 19, 2011, in the National Indian Health
Board’s Summit on the Patient Protection and Affordable Care Act.

o The Treasury Department contacted tribal leaders and interested parties soon after the
May, 2011 announcement of the formation of a new Federal Advisory Committee on
Insurance (FACI), to encourage applications and the representation of Indian Country
interests regarding the new Federal Insurance Office created under the Dodd-Frank
Wall Street Reform and Consumer Protection Act. At least one nomination of a
Native American tribal officer was submitted within the specified time frame.

o Treasury and IRS representatives attended the May, 2011 sessions of the Department
of Energy Tribal Summit with Native American and Alaska Native Leaders. The
POCTC participated in an inter-agency workshop on economic development, co-
sponsored by CDFI/NACA and FRB/SF and mentioned above. Treasury has also
participated in inter-agency meetings on business development in Indian country, and
an ongoing inter-agency working group on implementation of Indian Health Care
Act. Treasury office staff reviewed legislative proposals and related documents that
have tribal implications, including the Priority Abandoned Mine Reclamation Act
Amendments of 2011, and legislation to strengthen tribal justice systems through
greater cooperation among the Bureau of Indian Affairs, the Office of Justice
Services, and the Bureau of Indian Affairs.

o Treasury Offices and Bureaus have been actively engaged in finalizing the tribal
consultation process outlined in our August 2010 progress report.

Conclusion

Key Treasury Offices and Bureaus have been actively engaged in tribal consultation during the
past year, meeting with tribal leaders in a variety of venues and integrating tribal leaders’
requests into their work plans. The tribal consultation process described in our August 2010
report appears to be working effectively. As the process becomes increasingly refined and
formalized, it will be reviewed by Treasury Offices and Bureaus. This iterative process should
provide a strong basis for the Treasury Department’s new tribal consultation policy.


from tribal leaders on a number of issues including Treasury programs providing
access to capital, tax credits targeted to Native American and Alaskan Native tribes,
and tribal and state government sovereignty.

Treasury Departmental Offices initiated a July, 2010 Federal Register request for
comments on Tribal Economic Development Bond (TEDB) eligibility criteria.
Comments were received from 27 tribes and other interested parties and reviewed by
Treasury staff. These written comments, as well as verbal comments received in
several venues, will inform the Treasury Department study on the effectiveness of
expanded criteria permitted under the American Recovery and Reinvestment Act
(ARRA). Treasury’s Office of Tax Policy is working actively on this study.

The Director of the Indian Tribal Governments Office at the Internal Revenue Service
(IRS ITG Director) Christie Jacobs, participated on December 15, 2010, in a multi-
agency consultation and listening session on the implementation of the Patient
Protection and Affordable Care Act. Currently HHS, IHS, OPM, and IRS are
preparing for joint ACA consultations in August and September of 2011.

POCTC Aaron Klein participated, on March 3, 2011, in a White House listening
session on economic development issues raised during Tribal Nations Conference.

The Treasury Department participated in a government-wide review of the United
Nations’ Declaration on the Rights of Indigenous Peoples. This review culminated in
the President’s announcement, at the White House Tribal Nations’ Conference, that
the United States now supports the U.N. Declaration.

The IRS Office of Indian Tribal Governments (IRS ITG Office) scheduled a series of
training workshops and a webinar for the months of April through October 2011.
Workshop topics include employment taxes, casino-related topics, and gaming
information returns.

The Community Development Financial Institutions Fund’s Native American CDFI
Assistance Program (CDFI/NACA) and the Seattle Branch of the Federal Reserve
Bank of San Francisco (FRB/SF) are co-sponsoring a series of workshops on the
theme "Growing Economies in Indian Country: Taking Stock of Progress and
Partnerships." The regional workshop schedule runs from June 28, 2011 to
September 22, 2011. POCTC Klein spoke, at the Portland, Oregon regional
conference on July 21, 2011.

The Office of Financial Markets has been engaged in ongoing consultation this year
with the Cheyenne River Sioux Tribe regarding the establishment and investment of
the Cheyenne River Sioux Tribal Recovery Trust Fund (the Fund) as of October 1,

2


Within the Financial Management Services (FMS), some outreach to tribal governments and businesses has
been undertaken by Customer Relationship Managers (CRMs), who serve as the central point of contact for
Federal Program Agencies (FPAs). CRMs can help FPAs to improve government-wide cash management
practices.

FMS administers the surety bond program for the federal government under 31 U.S.C. 9304-9308 for
companies who wish to: direct write federal bonds, reinsure federal bonds, and/or be recognized as an
Admitted Reinsurer. Last year the POCTC, on the advice of staff from the Office of Domestic Finance,
directed consulting parties to FMS for further information.

Internal Revenue Service

http://www.irs.gov/tribes

The overall goal of the IRS’ Indian Tribal Governments Office (ITG) is to use partnership opportunities
with Indian tribal governments, including Alaska Native governments, tribal associations, and other federal
agencies, to respectfully and cooperatively meet the tax administration needs of both the Indian tribal
governments and the federal government. Five ITG field groups consisting of tribal government specialists
work in locations near the seats of tribal governments. ITG specialists can address issues that relate to
tribal governments as employers, distributions to tribal members, and the establishment of governmental
programs, trusts and businesses. ITG has consulted extensively with tribal governments throughout the
development of its programs and is currently leading a review of the IRS to ensure the agency complies
with EO 13175.

The Patient Protection and Affordable Care Act added Section 139D to the Internal Revenue Code. Section
139D provides, in general, that gross income does not include the value of any qualified Indian health care
benefit. The IRS has posted Frequently Asked Questions (FAQs) about new section 139D on its website at
http://www.irs.gov/pub/irs-tege/139d_faqs final 2 oc.pdf. In addition, the IRS announced in March 2011
that Federally recognized Indian Tribal Governments are specifically exempted from the Patient Protection
and Affordable Care Act (PPACA) W-2 reporting requirement. This exemption was announced in IRS
Notice 2011-28; Question & Answer 3. The IRS is seeking input from tribal leaders on these issues as well
as any other tax related items related to the implementation of the Affordable Care Act during multi-agency
Consultation sessions scheduled for August and September.

On May 9, 2011, the IRS issued final regulations related to the withholding of certain governmental

payments under Section 3402(t) of the Code. Those regulations exempt payments to Indian tribal

governments. Because Indian tribal governments are not subject to United States income tax, subjecting

payments made by government entities to Indian tribal governments to Section 3402(t) withholding would

be unduly burdensome. In response to comments, the final regulations also exempt payments to pass-

through entities that are owned 80 percent or more by one or more persons each of which is an Indian tribal
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Appendix C: Possible Criteria for Tribal Consultation

Specific criteria that Treasury Offices and Bureaus may use to identify legislation and
regulations requiring consultation with sovereign American Indian and Alaskan Native tribes are
suggested below, together with illustrative examples.

1. Programs or policies that target AI/ANs explicitly or directly, and programs that target
groups and activities in which AI/ANs are disproportionately represented, should engage
in consultation early in the regulation drafting process. For example:

o Policies that related to the definition of permissible uses for which tribal
governments can issue tax exempt debt;

o Policies that specifically deal with the taxation of benefits provided by tribal
governments, such as health care;

o Programs that seek to increase to increase the availability of capital to Native
American owned or controlled financial institutions through additional support for
Native American owned CDFIs, directly or as part of a targeted initiative toward
similarly situated CDFIs.

o Programs that seek to prevent exploitation of Native American tribes and tribal
businesses through criminal and terrorist activities, such as money laundering
activities that target tribally-owned gambling institutions. '!

2. Tribal consultation process may be required when AI/AN tribes request consultation on
substantive issues that are unique to tribal governments, when consultation is requested to
address regulatory or legislative activities that are likely to have direct and identifiable
economic impacts on Indian tribes, or when it is evident, or should be evident, that the
contemplated regulations or legislation could preempt tribal law.

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