103D CONGRESS

1ST SESSION S. 1156

AN ACT

To provide for the settlement of land claims of the

poses.relationship with the Tribe, and for other purCarolina and the restoration of the Federal trustCatawba Tribe of Indians in the State of South
103D CONGRESS

1ST SESSION S. 1156

AN ACT

To provide for the settlement of land claims of the Catawba

Tribe of Indians in the State of South Carolina and

the restoration of the Federal trust relationship with

the Tribe, and for other purposes.

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

3 SECTION 1. SHORT TITLE.

4 This Act may be cited as the ‘‘Catawba Indian Tribe

5 of South Carolina Land Claims Settlement Act of 1993’’.
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1 SEC. 2. DECLARATION OF POLICY, CONGRESSIONAL FIND2 INGS AND PURPOSE.

3 (a) FINDINGS.—The Congress declares and finds

4 that:

5 (1) It is the policy of the United States to pro6 mote tribal self-determination and economic self-suf7 ficiency and to support the resolution of disputes

8 over historical claims through settlements mutually

9 agreed to by Indian and non-Indian parties.

10 (2) There is pending before the United States

11 District Court for the District of South Carolina a

12 lawsuit disputing ownership of approximately

13 140,000 acres of land in the State of South Carolina

14 and other rights of the Catawba Indian Tribe under

15 Federal law.

16 (3) The Catawba Indian Tribe initiated a relat17 ed lawsuit against the United States in the United

18 States Court of Federal Claims seeking monetary

19 damages.

20 (4) Some of the significant historical events

21 which have led to the present situation include:

22 (A) In treaties with the Crown in 1760

23 and 1763, the Tribe ceded vast portions of its

24 aboriginal territory in the present States of

25 North and South Carolina in return for guaran-
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1 tees of being quietly settled on a 144,000-acre

2 reservation.

3 (B) The Tribe’s district court suit con4 tended that in 1840 the Tribe and the State en5 tered into an agreement without Federal ap6 proval or participation whereby the Tribe ceded

7 its treaty reservation to the State, thereby giv8 ing rise to the Tribe’s claim that it was dispos9 sessed of its lands in violation of Federal law.

10 (C) In 1943, the United States entered

11 into an agreement with the Tribe and the State

12 to provide services to the Tribe and its mem13 bers. The State purchased 3,434 acres of land

14 and conveyed it to the Secretary in trust for the

15 Tribe and the Tribe organized under the Indian

16 Reorganization Act.

17 (D) In 1959, when Congress enacted the

18 Catawba Tribe of South Carolina Division of

19 Assets Act (25 U.S.C. 931–938), Federal

20 agents assured the Tribe that if the Tribe

21 would release the Government from its obliga22 tion under the 1943 agreement and agree to

23 Federal legislation terminating the Federal

24 trust relationship and liquidating the 1943 res-
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1 ervation, the status of the Tribe’s land claim

2 would not be jeopardized by termination.

3 (E) In 1980, the Tribe initiated Federal

4 court litigation to regain possession of its treaty

5 lands and in 1986, the United States Supreme

6 Court ruled in South Carolina against Catawba

7 Indian Tribe that the 1959 Act resulted in the

8 application of State statutes of limitations to

9 the Tribe’s land claim. Two subsequent deci10 sions of the United States Court of Appeals for

11 the Fourth Circuit have held that some portion

12 of the Tribe’s claim is barred by State statutes

13 of limitations and that some portion is not

14 barred.

15 (5) The pendency of these lawsuits has led to

16 substantial economic and social hardship for a large

17 number of landowners, citizens and communities in

18 the State of South Carolina, including the Catawba

19 Indian Tribe. Congress recognizes that if these

20 claims are not resolved, further litigation against

21 tens of thousands of landowners would be likely;

22 that any final resolution of pending disputes through

23 a process of litigation would take many years and

24 entail great expenses to all parties; continue eco25 nomically and socially damaging controversies; pro-
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1 long uncertainty as to the ownership of property;

2 and seriously impair long-term economic planning

3 and development for all parties.

4 (6) The 102d Congress has enacted legislation

5 suspending until October 1, 1993, the running of

6 any unexpired statute of limitation applicable to the

7 Tribe’s land claim in order to provide additional

8 time to negotiate settlement of these claims.

9 (7) It is recognized that both Indian and non10 Indian parties enter into this settlement to resolve

11 the disputes raised in these lawsuits and to derive

12 certain benefits. The parties’ Settlement Agreement

13 constitutes a good faith effort to resolve these law14 suits and other claims and requires implementing

15 legislation by the Congress of the United States, the

16 General Assembly of the State of South Carolina,

17 and the governing bodies of the South Carolina

18 counties of York and Lancaster.

19 (8) To advance the goals of the Federal policy

20 of Indian self-determination and restoration of ter21 minated Indian Tribes, and in recognition of the

22 United States obligation to the Tribe and the Fed23 eral policy of settling historical Indian claims

24 through comprehensive settlement agreements, it is

25 appropriate that the United States participate in the
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1 funding and implementation of the Settlement

2 Agreement.

3 (b) PURPOSE.—It is the purpose of this Act—

4 (1) to approve, ratify, and confirm the Settle5 ment Agreement entered into by the non-Indian set6 tlement parties and the Tribe;

7 (2) to authorize and direct the Secretary to im8 plement the terms of such Settlement Agreement;

9 (3) to authorize the actions and appropriations

10 necessary to implement the provisions of the Settle11 ment Agreement and this Act;

12 (4) to remove the cloud on titles in the State

13 of South Carolina resulting from the Tribe’s land

14 claim; and

15 (5) to restore the trust relationship between the

16 Tribe and the United States.

17 SEC. 3. DEFINITIONS.

18 For purposes of this Act:

19 (1) The term ‘‘Tribe’’ means the Catawba In20 dian Tribe of South Carolina as constituted in ab21 original times, which was party to the Treaty of

22 Pine Tree Hill in 1760 as confirmed by the Treaty

23 of Augusta in 1763, which was party also to the

24 Treaty of Nation Ford in 1840, and which was the

25 subject of the Termination Act, and all predecessors
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1 and successors in interest, including the Catawba In2 dian Tribe of South Carolina, Inc.

3 (2) The term ‘‘claim’’ or ‘‘claims’’ means any

4 claim which was asserted by the Tribe in either Suit,

5 and any other claim which could have been asserted

6 by the Tribe or any Catawba Indian of a right, title

7 or interest in property, to trespass or property dam8 ages, or of hunting, fishing or other rights to natu9 ral resources, if such claim is based upon aboriginal

10 title, recognized title, or title by grant, patent, or

11 treaty including the Treaty of Pine Tree Hill of

12 1760, the Treaty of Augusta of 1763, or the Treaty

13 of Nation Ford of 1840.

14 (3) The term ‘‘Executive Committee’’ means

15 the body of the Tribe composed of the Tribe’s execu16 tive officers as selected by the Tribe in accordance

17 with its constitution.

18 (4) The term ‘‘Existing Reservation’’ means

19 that tract of approximately 630 acres conveyed to

20 the State in trust for the Tribe by J.M. Doby on

21 December 24, 1842, by deed recorded in York Coun22 ty Deed Book N, pp. 340–341.

23 (5) The term ‘‘General Council’’ means the

24 membership of the Tribe convened as the Tribe’s
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1 governing body for the purpose of conducting tribal

2 business pursuant to the Tribe’s constitution.

3 (6) The term ‘‘Member’’ means individuals who

4 are currently members of the Tribe or who are en5 rolled in accordance with this Act.

6 (7) The term ‘‘Reservation’’ or ‘‘Expanded Res7 ervation’’ means the Existing Reservation and the

8 lands added to the Existing Reservation in accord9 ance with section 12 of this Act, which are to be

10 held in trust by the Secretary in accordance with

11 this Act.

12 (8) The term ‘‘Secretary’’ means the Secretary

13 of the Interior.

14 (8A) The term ‘‘service area’’ means the area

15 composed of the State of South Carolina and

16 Cabarrus, Cleveland, Gaston, Mecklenburg, Ruther17 ford, and Union counties in the State of North

18 Carolina.

19 (9) The term ‘‘Settlement Agreement’’ means

20 the document entitled ‘‘Agreement in Principle ’’ be21 tween the Tribe and the State of South Carolina and

22 attached to the copy of the State implementing legis23 lation and filed with the Secretary of State of the

24 State of South Carolina, as amended to conform to
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1 this Act and printed in the Congressional Record on

2 the date of the enactment of this Act.

3 (10) The term ‘‘State’’ means, except for sec4 tion 6 (a) through (f), the State of South Carolina.

5 (11) The term ‘‘State Act’’ means the Act en6 acted into law by the State of South Carolina on

7 June 14, 1993, and codified as S.C. Code Ann., sec8 tions 27–16–10 through 27–16–140, to implement

9 the Settlement Agreement.

10 (12) The term ‘‘Suit’’ or ‘‘Suits’’ means Ca11 tawba Indian Tribe of South Carolina v. State of

12 South Carolina, et al., docketed as Civil Action No.

13 80–2050 and filed in the United States District

14 Court for the District of South Carolina; and Ca15 tawba Indian Tribe of South Carolina v. The United

16 States of America, docketed as Civil Action No. 90–

17 553L and filed in the United States Court of

18 Federal Claims.

19 (13) The term ‘‘Termination Act’’ means the

20 Act entitled ‘‘An Act to provide for the division of

21 the tribal assets of the Catawba Indian Tribe of

22 South Carolina among the members of the Tribe

23 and for other purposes’’, approved September 21,

24 1959 (73 Stat. 592; 25 U.S.C. 931–938).
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1 (14) The term ‘‘transfer’’ includes (but is not

2 limited to) any voluntary or involuntary sale, grant,

3 lease, allotment, partition, or other conveyance; any

4 transaction the purpose of which was to effect a

5 sale, grant, lease, allotment, partition, or convey6 ance; and any act, event or circumstance that re7 sulted in a change in title to, possession of, domin8 ion over, or control of land, water, minerals, timber,

9 or other natural resources.

10 (15) The term ‘‘Trust Funds’’ means the trust

11 funds established by section 11 of this Act.

12 SEC. 4. RESTORATION OF FEDERAL TRUST RELATIONSHIP.

13 (a) RESTORATION OF THE FEDERAL TRUST RELA14 TIONSHIP AND APPROVAL, RATIFICATION, AND CON15 FIRMATION OF THE SETTLEMENT AGREEMENT.—On the

16 effective date of this Act—

17 (1) the trust relationship between the Tribe and

18 the United States is restored; and

19 (2) the Settlement Agreement and the State

20 Act are approved, ratified, and confirmed by the

21 United States to effectuate the purposes of this Act,

22 and shall be complied with in the same manner and

23 to the same extent as if they had been enacted into

24 Federal law.
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1 (b) ELIGIBILITY FOR FEDERAL BENEFITS AND

2 SERVICES.—Notwithstanding any other provision of law,

3 on the effective date of this Act, the Tribe and the Mem4 bers shall be eligible for all benefits and services furnished

5 to federally recognized Indian Tribes and their members

6 because of their status as Indians. On the effective date

7 of this Act, the Secretary shall enter the Tribe on the list

8 of federally recognized bands and Tribes maintained by

9 the Department of the Interior; and its members shall be

10 entitled to special services, educational benefits, medical

11 care, and welfare assistance provided by the United States

12 to Indians because of their status as Indians, and the

13 Tribe shall be entitled to the special services performed

14 by the United States for Tribes because of their status

15 as Indian Tribes. For the purpose of eligibility for Federal

16 services made available to members of federally recognized

17 Indian Tribes because of their status as Indian tribal

18 members, Members of the Tribe in the Tribe’s service area

19 shall be deemed to be residing on or near a reservation.

20 (c) REPEAL OF TERMINATION ACT.—The Termi21 nation Act is repealed.

22 (d) EFFECT ON PROPERTY RIGHTS AND OTHER OB23 LIGATIONS.—Except as otherwise specifically provided in

24 this Act, this Act shall not affect any property right or

25 obligation or any contractual right or obligation in exist-
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1 ence before the effective date of this Act, or any obligation

2 for taxes levied before that date.

3 (e) EXTENT OF JURISDICTION.—This Act shall not

4 be construed to empower the Tribe with special jurisdic5 tion or to deprive the State of jurisdiction other than as

6 expressly provided by this Act or by the State Act. The

7 jurisdiction and governmental powers of the Tribe shall

8 be solely those set forth in this Act and the State Act.

9 SEC. 5. SETTLEMENT FUNDS.

10 (a) AUTHORIZATION FOR APPROPRIATION.—There is

11 hereby authorized to be appropriated $32,000,000 for the

12 Federal share which shall be deposited in the trust funds

13 established pursuant to section 11 of this Act or paid pur14 suant to section 6(g).

15 (b) DISBURSEMENT IN ACCORDANCE WITH SETTLE16 MENT AGREEMENT.—The Federal funds appropriated

17 pursuant to this Act shall be disbursed in four equal an18 nual installments of $8,000,000 beginning in the fiscal

19 year following enactment of this Act. Funds transferred

20 to the Secretary from other sources shall be deposited in

21 the trust funds established pursuant to section 11 of this

22 Act or paid pursuant to section 6(g) within 30 days of

23 receipt by the Secretary.

24 (c) PRIVATE FUNDS.—Any private payments made to

25 settle the claims may be treated, at the election of the
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1 taxpayer, as either a payment in settlement of litigation

2 or a charitable contribution for Federal income tax pur3 poses.

4 (d) FEDERAL, STATE, LOCAL AND PRIVATE CON5 TRIBUTIONS HELD IN TRUST BY SECRETARY.—The Sec6 retary shall, on behalf of the Tribe, collect those contribu7 tions toward settlement appropriated or received by the

8 State pursuant to section 5.2 of the Settlement Agreement

9 and shall either hold such funds totalling $18,000,000, to10 gether with the Federal funds appropriated pursuant to

11 this Act, in trust for the Tribe pursuant to the provisions

12 of section 11 of this Act or pay such funds pursuant to

13 section 6(g) of this Act.

14 (e) NONPAYMENT OF STATE, LOCAL, OR PRIVATE

15 CONTRIBUTIONS.—The Secretary shall not be accountable

16 or incur any liability under this Act for the collection, de17 posit, or management of the non-Federal contributions

18 made pursuant to section 5.2 of the Settlement Agree19 ment, or payment of such funds pursuant to section 6(g)

20 of this Act, until such time as such funds are received

21 by the Secretary.
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1 SEC. 6. RATIFICATION OF PRIOR TRANSFERS; EXTINGUISH2 MENT OF ABORIGINAL TITLE, RIGHTS AND

3 CLAIMS.

4 (a) RATIFICATION OF TRANSFERS.—Any transfer of

5 land or natural resources located anywhere within the

6 United States from, by, or on behalf of the Tribe, any

7 one or more of its Members, or anyone purporting to be

8 a Member, including but without limitation any transfer

9 pursuant to any treaty, compact, or statute of any State,

10 shall be deemed to have been made in accordance with

11 the Constitution and all laws of the United States, and

12 Congress hereby approves and ratifies any such transfer

13 effective as of the date of such transfer. Nothing in this

14 section shall be construed to affect or eliminate the per15 sonal claim of any individual Member (except for any Fed16 eral common law fraud claim) which is pursued under any

17 law of general applicability that protects non-Indians as

18 well as Indians.

19 (b) ABORIGINAL TITLE.—To the extent that any

20 transfer of land or natural resources described in sub21 section (a) of this section may involve land or natural re22 sources to which the Tribe, any of its Members, or anyone

23 purporting to be a Member, or any other Indian, Indian

24 nation, or Tribe or band of Indians had aboriginal title,

25 subsection (a) of this section shall be regarded as an extin-
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1 guishment of aboriginal title as of the date of such

2 transfer.

3 (c) EXTINGUISHMENT OF CLAIMS.—By virtue of the

4 approval and ratification of any transfer of land or natural

5 resources effected by this section, or the extinguishment

6 of aboriginal title effected thereby, all claims against the

7 United States, any State or subdivision thereof, or any

8 other person or entity, by the Tribe, any of its Members,

9 or anyone purporting to be a Member, or any predecessors

10 or successors in interest thereof or any other Indian, In11 dian Nation, or Tribe or band of Indians, arising at the

12 time of or subsequent to the transfer and based on any

13 interest in or right involving such land or natural re14 sources, including without limitation claims for trespass

15 damages or claims for use and occupancy, shall be deemed

16 extinguished as of the date of the transfer.

17 (d) EXTINGUISHMENT OF TITLE.—(1) All claims and

18 all right, title, and interest that the Tribe, its Members,

19 or any person or group of persons purporting to be Ca20 tawba Indians may have to aboriginal title, recognized

21 title, or title by grant, patent, or treaty to the lands lo22 cated anywhere in the United States are hereby extin23 guished.

24 (2) This extinguishment of claims shall also extin25 guish title to any hunting, fishing, or water rights or
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1 rights to any other natural resource claimed by the Tribe

2 or a Member based on aboriginal or treaty recognized title,

3 and all trespass damages and other damages associated

4 with use, occupancy or possession, or entry upon such

5 lands.

6 (e) BAR TO FUTURE CLAIMS.—The United States is

7 hereby barred from asserting by or on behalf of the Tribe

8 or any of its Members, or anyone purporting to be a Mem9 ber, any claim arising before the effective date of this Act

10 from the transfer of any land or natural resources by deed

11 or other grant, or by treaty, compact, or act of law, on

12 the grounds that such transfer was not made in accord13 ance with the laws of South Carolina or the Constitution

14 or laws of the United States.

15 (f) NO DEROGATION OF FEE SIMPLE IN EXISTING

16 RESERVATION, OR EFFECT ON MEMBERS’ FEE INTER17 ESTS.—Nothing in this Act shall be construed to diminish

18 or derogate from the Tribe’s estate in the Existing Res19 ervation; or to divest or disturb title in any land conveyed

20 to any person or entity as a result of the Termination Act

21 and the liquidation and partition of tribal lands; or to di22 vest or disturb the right, title and interest of any member

23 in any fee simple, leasehold or remainder estate or any

24 equitable or beneficial right or interest any such member

25 may own individually and not as a member of the Tribe.
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1 (g) COSTS AND ATTORNEYS’ FEES.—The parties to

2 the Suits shall bear their own costs and attorneys’ fees.

3 As provided by section 6.4 of the Settlement Agreement,

4 the Secretary shall pay to the Tribe’s attorney in the Suits

5 attorneys’ fees, and expenses not to exceed 10 percent of

6 the $50,000,000 obligated for payment to the Tribe by

7 Federal, State, local, and private parties pursuant to sec8 tion 5 of the Settlement Agreement.

9 (h) PERSONAL CLAIMS NOT AFFECTED.—Nothing in

10 this section shall be deemed to affect, diminish, or elimi11 nate the personal claim of any individual Indian which is

12 pursued under any law of general applicability (other than

13 Federal common law fraud) that protects non-Indians as

14 well as Indians.

15 (i) FEDERAL PAYMENT.—In the event any of the

16 Federal payments are not paid as set forth in section 5,

17 such failure to pay shall give rise to a cause of action by

18 the Tribe against the United States for money damages

19 for the amount authorized to be paid to the Tribe in sec20 tion 5(a) in settlement of the Tribe’s claim, and the Tribe

21 is authorized to bring an action in the United States Court

22 of Claims for such funds plus applicable interest. The

23 United States hereby waives any affirmative defense to

24 such action.
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1 (j) STATE PAYMENT.—In the event any of the State

2 payments are not paid as set forth in section 5, such fail3 ure to pay shall give rise to a cause of action in the United

4 States District Court for the District of South Carolina

5 by the Tribe against the State of South Carolina for

6 money damages for the amount authorized to be paid to

7 the Tribe in section 5(d) in settlement of the Tribe’s claim.

8 Pursuant to § 27–16–50 (E) of the State Act, the State

9 of South Carolina waives any Eleventh Amendment immu10 nity to such action.

11 SEC. 7. BASE MEMBERSHIP ROLL.

12 (a) BASE MEMBERSHIP ROLL CRITERIA.—Within

13 one year after enactment of this section, the Tribe shall

14 submit to the Secretary, for approval, its base membership

15 roll. An individual is eligible for inclusion on the base

16 membership roll if that individual is living on the date of

17 enactment of this Act and—

18 (1) is listed on the membership roll published

19 by the Secretary in the Federal Register on Feb20 ruary 25, 1961 (26 FR 1680–1688, ‘‘Notice of

21 Final Membership Roll’’), and is not excluded under

22 the provisions of subsection (c);

23 (2) the Executive Committee determines, based

24 on the criteria used to compile the roll referred to

25 in paragraph (1), that the individual should have
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1 been included on the membership roll at that time,

2 but was not; or

3 (3) is a lineal descendant of a Member whose

4 name appeared or should have appeared on the

5 membership roll referred to in paragraph (1).

6 (b) BASE MEMBERSHIP ROLL NOTICE.—Within 90

7 days after the enactment of this Act, the Secretary shall

8 publish in the Federal Register, and in three newspapers

9 of general circulation in the Tribe’s service area, a notice

10 stating—

11 (1) that a base membership roll is being pre12 pared by the Tribe and that the current membership

13 roll is open and will remain open for a period of 90

14 days;

15 (2) the requirements for inclusion on the base

16 membership roll;

17 (3) the final membership roll published by the

18 Secretary in the Federal Register on February 25,

19 1961;

20 (4) the current membership roll as prepared by

21 the Executive Committee and approved by the Gen22 eral Council; and

23 (5) the name and address of the tribal or Fed24 eral official to whom inquiries should be made.
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1 (c) COMPLETION OF BASE MEMBERSHIP ROLL.—

2 Within 120 days after publication of notice under sub3 section (b), the Secretary, after consultation with the

4 Tribe, shall prepare and publish in the Federal Register,

5 and in three newspapers of general circulation in the

6 Tribe’s service area, a proposed final base membership roll

7 of the Tribe. Within 60 days from the date of publication

8 of the proposed final base membership roll, an appeal may

9 be filed with the Executive Committee under rules made

10 by the Executive Committee in consultation with the Sec11 retary. Such an appeal may be filed by a Member with

12 respect to the inclusion of any name on the proposed final

13 base membership roll and by any person with respect to

14 the exclusion of his or her name from the final base mem15 bership roll. The Executive Committee shall review such

16 appeals and render a decision, subject to the Secretary’s

17 approval. If the Executive Committee and the Secretary

18 disagree, the Secretary’s decision will be final. All such

19 appeals shall be resolved within 90 days following publica20 tion of the proposed roll. The final base membership roll

21 of the Tribe shall then be published in the Federal Reg22 ister, and in three newspapers of general circulation in the

23 Tribe’s service area, and shall be final for purposes of the

24 distribution of funds from the Per Capita Trust Fund.
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1 (e) FUTURE MEMBERSHIP IN THE TRIBE.—The

2 Tribe shall have the right to determine future membership

3 in the Tribe; however, in no event may an individual be

4 enrolled as a tribal member unless the individual is a lineal

5 descendant of a person on the base membership roll and

6 has continued to maintain political relations with the

7 Tribe.

8 SEC. 8. TRANSITIONAL AND PROVISIONAL GOVERNMENT.

9 (a) FUTURE TRIBAL GOVERNMENT.—The Tribe

10 shall adopt a new constitution within 24 months after the

11 effective date of this Act.

12 (b) EXECUTIVE COMMITTEE AS TRANSITIONAL

13 BODY.—(1) Until the Tribe has adopted a constitution,

14 the existing tribal constitution shall remain in effect and

15 the Executive Committee is recognized as the provisional

16 and transitional governing body of the Tribe. Until an

17 election of tribal officers under the new constitution, the

18 Executive Committee shall—

19 (A) represent the Tribe and its Members in the

20 implementation of this Act; and

21 (B) during such period—

22 (i) have full authority to enter into con23 tracts, grant agreements and other arrange24 ments with any Federal department or agency;

25 and
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1 (ii) have full authority to administer or op2 erate any program under such contracts or

3 agreements.

4 (2) Until the initial election of tribal officers under

5 a new constitution and by-laws, the Executive Committee

6 shall—

7 (A) determine tribal membership in accordance

8 with the provisions of section 7; and

9 (B) oversee and implement the revision and

10 proposal to the Tribe of a new constitution and con11 duct such tribal meetings and elections as are re12 quired by this Act.

13 SEC. 9. TRIBAL CONSTITUTION AND GOVERNANCE.

14 (a) INDIAN REORGANIZATION ACT.—If the Tribe so

15 elects, it may organize under the Act of June 18, 1934

16 (25 U.S.C. 461 et seq.; commonly referred to as the ‘‘In17 dian Reorganization Act’’). The Tribe shall be subject to

18 such Act except to the extent such sections are inconsist19 ent with this Act.

20 (b) ADOPTION OF NEW TRIBAL CONSTITUTION.—

21 Within 180 days after the effective date of this Act, the

22 Executive Committee shall draft and distribute to each

23 Member eligible to vote under the tribal constitution in

24 effect on the effective date of this Act, a proposed con25 stitution and bylaws for the Tribe together with a brief,
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1 impartial description of the proposed constitution and by2 laws and a notice of the date, time and location of the

3 election under this subsection. Not sooner than 30 days

4 or later than 90 days after the distribution of the proposed

5 constitution, the Executive Committee shall conduct a se6 cret-ballot election to adopt a new constitution and bylaws.

7 (c) MAJORITY VOTE FOR ADOPTION; PROCEDURE IN

8 EVENT OF FAILURE TO ADOPT PROPOSED CONSTITU9 TION.—(1) The tribal constitution and bylaws shall be

10 ratified and adopted if—

11 (A) not less than 30 percent of those entitled

12 to vote do vote; and

13 (B) approved by a majority of those actually

14 voting.

15 (2) If in any such election such majority does not ap16 prove the adoption of the proposed constitution and by17 laws, the Executive Committee shall prepare another pro18 posed constitution and bylaws and present it to the Tribe

19 in the same manner provided in this section for the first

20 constitution and bylaws. Such new proposed constitution

21 and bylaws shall be distributed to the eligible voters of

22 the Tribe no later than 180 days after the date of the

23 election in which the first proposed constitution and by24 laws failed of adoption. An election on the question of the

25 adoption of the new proposal of the Executive Committee
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1 shall be conducted in the same manner provided in sub2 section (b) for the election on the first proposed constitu3 tion and bylaws.

4 (d) ELECTION OF TRIBAL OFFICERS.—Within 120

5 days after the Tribe ratifies and adopts a constitution and

6 bylaws, the Executive Committee shall conduct an election

7 by secret ballot for the purpose of electing tribal officials

8 as provided in the constitution and bylaws. Subsequent

9 elections shall be held in accordance with the Tribe’s con10 stitution and bylaws.

11 (e) EXTENSION OF TIME.—Any time periods pre12 scribed in subsections (b) and (c) may be altered by writ13 ten agreement between the Executive Committee and the

14 Secretary.

15 SEC. 10. ADMINISTRATIVE PROVISIONS RELATING TO JU16 RISDICTION, TAXATION, AND OTHER MAT17 TERS.

18 In the administration of this Act:

19 (1) All matters involving tribal powers, immuni20 ties, and jurisdiction, whether criminal, civil, or reg21 ulatory, shall be governed by the terms and provi22 sions of the Settlement Agreement and the State

23 Act, unless otherwise provided in this Act.

24 (2) All matters relating to taxation involving

25 the Tribe, its Members, and any property owned by
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1 or held in trust for the Tribe or its Members, shall

2 be governed by the terms and provisions of the Set3 tlement Agreement and the State Act, unless other4 wise provided in this Act.

5 (3) All matters pertaining to governance and

6 regulation of the reservation (including environ7 mental regulation and riparian rights) shall be gov8 erned by the terms and provisions of the Settlement

9 Agreement and the State Act, including, but not

10 limited to, section 17 of the Settlement Agreement

11 and section 27–16–120 of the State Act, unless oth12 erwise provided in this Act.

13 (4) The Indian Child Welfare Act of 1978 (25

14 U.S.C. 1901 et seq.) shall apply to Catawba Indian

15 children except as provided in the Settlement Agree16 ment.

17 (5) Whether or not the Tribe, under section

18 9(a), elects to organize under the Act of June 18,

19 1934, the Tribe, in any constitution adopted by the

20 Tribe, may be authorized to exercise such authority

21 as is consistent with the Settlement Agreement and

22 the State Act.

23 (6) Section 7871 of the Internal Revenue Code

24 of 1986 (26 U.S.C. 7871, commonly referred to as

25 the ‘‘Indian Tribal Government Tax Status Act)
26

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1 shall apply to the Tribe and its Reservation. In no

2 event, however, may the Tribe pledge or hypothecate

3 the income or principal of the Catawba Education or

4 Social Services and Elderly Trust Funds or other5 wise use them as security or a source of payment for

6 bonds the Tribe may issue.

7 (7) The Indian Self-Determination and Edu8 cation Assistance Act (25 U.S.C. 450 et seq.) shall

9 apply to the Tribe except to the extent that such ap10 plication may be inconsistent with this Act or the

11 Settlement Agreement.

12 SEC. 11. TRIBAL TRUST FUNDS.

13 (a) PURPOSES OF TRUST FUNDS.—All funds paid

14 pursuant to section 5 of this Act, except for payments

15 made pursuant to section 6(g), shall be deposited with the

16 Secretary in trust for the benefit of the Tribe. Separate

17 trust funds shall be established for the following purposes:

18 economic development, land acquisition, education, social

19 services and elderly assistance, and per capita payments.

20 Except as provided in this section, the Tribe, in consulta21 tion with the Secretary, shall determine the share of settle22 ment payments to be deposited in each Trust Fund, and

23 define, consistently with the provisions of this section, the

24 purposes of each Trust Fund and provisions for admin25 istering each, specifically including provisions for periodic
27

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1 distribution of current and accumulated income, and for

2 invasion and restoration of principal.

3 (b) OUTSIDE MANAGEMENT OPTION.—(1) The

4 Tribe, in consultation with and subject to the approval of

5 the Secretary, as set forth in this section, is authorized

6 to place any of the Trust Funds under professional man7 agement, outside the Department of the Interior.

8 (2) If the Tribe elects to place any of the Trust

9 Funds under professional management outside the De10 partment of the Interior, it may engage a consulting or

11 advisory firm to assist in the selection of an independent

12 professional investment management firm, and it shall en13 gage, with the approval of the Secretary, an independent

14 investment management firm of proven competence and

15 experience established in the business of counseling large

16 endowments, trusts, or pension funds.

17 (3) The Secretary shall have 45 days to approve or

18 reject any independent investment management firm se19 lected by the Tribe. If the Secretary fails to approve or

20 reject the firm selected by the Tribe within 45 days, the

21 investment management firm selected by the Tribe shall

22 be deemed to have been approved by the Secretary.

23 (4) Secretarial approval of an investment manage24 ment firm shall not be unreasonably withheld, and any

25 Secretarial disapproval of an investment management firm
28

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1 shall be accompanied by a detailed explanation setting

2 forth the Secretary’s reasons for such disapproval.

3 (5)(A) For funds placed under professional manage4 ment, the Tribe, in consultation with the Secretary and

5 its investment manager, shall develop—

6 (i) current operating and long-term capital

7 budgets; and

8 (ii) a plan for managing, investing, and distrib9 uting income and principal from the Trust Funds to

10 match the requirements of the Tribe’s operating and

11 capital budgets.

12 (B) For each Trust Fund which the Tribe elects to

13 place under outside professional management, the invest14 ment plan shall provide for investment of Trust Fund as15 sets so as to serve the purposes described in this section

16 and in the Trust Fund provisions which the Tribe shall

17 establish in consultation with the Secretary and the inde18 pendent investment management firm.

19 (C) Distributions from each Trust Fund shall not ex20 ceed the limits on the use of principal and income imposed

21 by the applicable provisions of this Act for that particular

22 Trust Fund.

23 (D)(i) The Tribe’s investment management plan shall

24 not become effective until approved by the Secretary.
29

S 1156 ES

1 (ii) Upon submission of the plan by the Tribe to the

2 Secretary for approval, the Secretary shall have 45 days

3 to approve or reject the plan. If the Secretary fails to ap4 prove or disapprove the plan within 45 days, the plan shall

5 be deemed to have been approved by the Secretary and

6 shall become effective immediately.

7 (iii) Secretarial approval of the plan shall not be un8 reasonably withheld and any secretarial rejection of the

9 plan shall be accompanied by a detailed explanation set10 ting forth the Secretary’s reasons for rejecting the plan.

11 (E) Until the selection of an established investment

12 management firm of proven competence and experience,

13 the Tribe shall rely on the management, investment, and

14 administration of the Trust Funds by the Secretary pursu15 ant to the provisions of this section.

16 (c) TRANSFER OF TRUST FUNDS; EXCULPATION OF

17 SECRETARY.—Upon the Secretary’s approval of the

18 Tribe’s investment management firm and an investment

19 management plan, all funds previously deposited in trust

20 funds held by the Secretary and all funds subsequently

21 paid into the trust funds, which are chosen for outside

22 management, shall be transferred to the accounts estab23 lished by an investment management firm in accordance

24 with the approved investment management plan. The Sec25 retary shall be exculpated by the Tribe from liability for
30

S 1156 ES

1 any loss of principal or interest resulting from investment

2 decisions made by the investment management firm. Any

3 Trust Fund transferred to an investment management

4 firm shall be returned to the Secretary upon written re5 quest of the Tribe, and the Secretary shall manage such

6 funds for the benefit of the Tribe.

7 (d) LAND ACQUISITION TRUST.—(1) The Secretary

8 shall establish and maintain a Catawba Land Acquisition

9 Trust Fund, and until the Tribe engages an outside firm

10 for investment management of this trust fund, the Sec11 retary shall manage, invest, and administer this trust

12 fund. The original principal amount of the Land Acquisi13 tion Trust Fund shall be determined by the Tribe in con14 sultation with the Secretary.

15 (2) The principal and income of the Land Acquisition

16 Trust Fund may be used for the purchase and develop17 ment of Reservation and non-Reservation land pursuant

18 to the Settlement Agreement, costs related to land acquisi19 tion, and costs of construction of infrastructure and devel20 opment of the Reservation and non-Reservation land.

21 (3)(A) Upon acquisition of the maximum amount of

22 land allowed for expansion of the Reservation, or upon re23 quest of the Tribe and approval of the Secretary pursuant

24 to the Secretarial approval provisions set forth in sub25 section (b)(5)(D) of this section, all or part of the balance
31

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1 of this trust fund may be merged into one or more of the

2 Economic Development Trust Fund, the Education Trust

3 Fund, or the Social Services and Elderly Assistance Trust

4 Fund.

5 (B) Alternatively, at the Tribe’s election, the Land

6 Acquisition Trust Fund may remain in existence after all

7 the Reservation land is purchased in order to pay for the

8 purchase of non-Reservation land.

9 (4)(A) The Tribe may pledge or hypothecate the in10 come and principal of the Land Acquisition Trust Fund

11 to secure loans for the purchase of Reservation and non12 Reservation lands.

13 (B) Following the effective date of this Act and be14 fore the final annual disbursement is made as provided

15 in section 5 of this Act, the Tribe may pledge or hypoth16 ecate up to 50 percent of the unpaid annual installments

17 required to be paid to this Trust Fund, the Economic De18 velopment Trust Fund and the Social Services and Elderly

19 Assistance Trust Fund by section 5 of this Act and by

20 section 5 of the Settlement Agreement, to secure loans to

21 finance the acquisition of Reservation or non-Reservation

22 land or infrastructure improvements on such lands.

23 (e) ECONOMIC DEVELOPMENT TRUST.—(1) The Sec24 retary shall establish and maintain a Catawba Economic

25 Development Trust Fund, and until the Tribe engages an
32

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1 outside firm for investment management of this Trust

2 Fund, the Secretary shall manage, invest, and administer

3 this Trust Fund. The original principal amount of the

4 Economic Development Trust Fund shall be determined

5 by the Tribe in consultation with the Secretary. The prin6 cipal and income of this Trust Fund may be used to sup7 port tribal economic development activities, including but

8 not limited to infrastructure improvements and tribal

9 business ventures and commercial investments benefiting

10 the Tribe.

11 (2) The Tribe, in consultation with the Secretary,

12 may pledge or hypothecate future income and up to 50

13 percent of the principal of this Trust Fund to secure loans

14 for economic development. In defining the provisions for

15 administration of this Trust Fund, and before pledging

16 or hypothecating future income or principal, the Tribe and

17 the Secretary shall agree on rules and standards for the

18 invasion of principal and for repayment or restoration of

19 principal, which shall encourage preservation of principal,

20 and provide that, if feasible, a portion of all profits derived

21 from activities funded by principal be applied to repay22 ment of the Trust Fund.

23 (3) Following the effective date of this Act and before

24 the final annual disbursement is made as provided in sec25 tion 5 of this Act, the Tribe may pledge or hypothecate
33

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1 up to 50 percent of the unpaid annual installments re2 quired to be paid by section 5 of this Act and by section

3 5 of the Settlement Agreement to secure loans to finance

4 economic development activities of the Tribe, including

5 (but not limited to) infrastructure improvements on Res6 ervation and non-Reservation lands.

7 (4) If the Tribe develops sound lending guidelines ap8 proved by the Secretary, a portion of the income from this

9 Trust Fund may also be used to fund a revolving credit

10 account for loans to support tribal businesses or business

11 enterprises of tribal members.

12 (f) EDUCATION TRUST.—The Secretary shall estab13 lish and maintain a Catawba Education Trust Fund, and

14 until the Tribe engages an outside firm for investment

15 management of this Trust Fund, the Secretary shall man16 age, invest, and administer this Trust Fund. The original

17 principal amount of this Trust Fund shall be determined

18 by the Tribe in consultation with the Secretary; subject

19 to the requirement that upon completion of all payments

into the Trust Funds, an amount equal to at least 1 20 ⁄3 of

21 all State, local, and private contributions made pursuant

22 to the Settlement Agreement shall have been paid into the

23 Education Trust Fund. Income from this Trust Fund

24 shall be distributed in a manner consistent with the terms

25 of the Settlement Agreement. The principal of this Trust
34

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1 Fund shall not be invaded or transferred to any other

2 Trust Fund, nor shall it be pledged or encumbered as se3 curity.

4 (g) SOCIAL SERVICES AND ELDERLY ASSISTANCE

5 TRUST.—(1) The Secretary shall establish and maintain

6 a Catawba Social Services and Elderly Assistance Trust

7 Fund and, until the Tribe engages an outside firm for in8 vestment management of this Trust Fund, the Secretary

9 shall manage, invest, and administer the Social Services

10 and Elderly Assistance Trust Fund. The original principal

11 amount of this Trust Fund shall be determined by the

12 Tribe in consultation with the Secretary.

13 (2) The income of this Trust Fund shall be periodi14 cally distributed to the Tribe to support social services

15 programs, including (but not limited to) housing, care of

16 elderly, or physically or mentally disabled Members, child

17 care, supplemental health care, education, cultural preser18 vation, burial and cemetery maintenance, and operation

19 of tribal government.

20 (3) The Tribe, in consultation with the Secretary,

21 shall establish eligibility criteria and procedures to carry

22 out this subsection.

23 (h) PER CAPITA PAYMENT TRUST FUND.—(1) The

24 Secretary shall establish and maintain a Catawba Per

25 Capita Payment Trust Fund in an amount equal to 15
35

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1 percent of the settlement funds paid pursuant to section

2 5 of the Settlement Agreement. Until the Tribe engages

3 an outside firm for investment management of this Trust

4 Fund, the Secretary shall manage, invest, and administer

5 the Catawba Per Capita Payment Trust Fund.

6 (2) Each person (or their estate) whose name appears

7 on the final base membership roll of the Tribe published

8 by the Secretary pursuant to section 7(c) of this Act will

9 receive a one-time, non-recurring payment from this Trust

10 Fund.

11 (3) The amount payable to each member shall be de12 termined by dividing the trust principal and any accrued

13 interest thereon by the number of Members on the final

14 base membership roll.

15 (4)(A) Subject to the provisions of this paragraph,

16 each enrolled member who has reached the age of 21 years

17 on the date the final roll is published shall receive the pay18 ment on the date of distribution, which shall be as soon

19 as practicable after date of publication of the final base

20 membership roll. Adult Members shall be paid their pro

21 rata share of this Trust Fund on the date of distribution

22 unless they elect in writing to leave their pro rata share

23 in the Trust Fund, in which case such share shall not be

24 distributed.
36

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1 (B) The pro rata share of adult Members who elect

2 not to withdraw their payment from this Trust Fund shall

3 be managed, invested and administered, together with the

4 funds of Members who have not attained the age of 21

5 years on the date the final base membership roll is pub6 lished, until such Member requests in writing that their

7 pro rata share be distributed, at which time such Mem8 ber’s pro rata share shall be paid, together with the net

9 income of the Trust Fund allocable to such Member’s

10 share as of the date of distribution.

11 (C) No member may elect to have their pro rata share

12 managed by this Trust Fund for a period of more than

13 21 years after the date of publication of the final base

14 membership roll.

15 (5)(A) Subject to the provisions of this paragraph,

16 the pro rata share of any Member who has not attained

17 the age of 21 years on the date the final base membership

18 roll is published shall be managed, invested and adminis19 tered pursuant to the provisions of this section until such

20 Member has attained the age of 21 years, at which time

21 such Member’s pro rata share shall be paid, together with

22 the net income of the Trust Fund allocable to such Mem23 ber’s share as of the date of payment. Such Members shall

24 be paid their pro rata share of this Trust Fund on the

25 date they attain 21 years of age unless they elect in writ-
37

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1 ing to leave their pro rata share in the Trust Fund, in

2 which case such share shall not be distributed.

3 (B) The pro rata share of such Members who elect

4 not to withdraw their payment from this trust fund shall

5 be managed, invested and administered, together with the

6 funds of members who have not attained the age of 21

7 years on the date the final base membership roll is pub8 lished, until such Member requests in writing that their

9 pro rata share be distributed, at which time such Mem10 ber’s pro rata share shall be paid, together with the net

11 income of the Trust Fund allocable to such Member’s

12 share as of the date of distribution.

13 (C) No Member may elect to have their pro rata

14 share retained and managed by this Trust Fund beyond

15 the expiration of the period of 21 years after the date of

16 publication of the final base membership roll.

17 (6) After payments have been made to all Members

18 entitled to receive payments, this Trust Fund shall termi19 nate, and any balance remaining in this Trust Fund shall

20 be merged into the Economic Development Trust Fund,

21 the Education Trust Fund, or the Social Services and El22 derly Assistance Trust Fund, as the Tribe may determine.

23 (i) DURATION OF TRUST FUNDS.—Subject to the

24 provisions of this section and with the exception of the

25 Catawba Per Capita Payment Trust Fund, the Trust
38

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1 Funds established in accordance with this section shall

2 continue in existence so long as the Tribe exists and is

3 recognized by the United States. The principal of these

4 Trust Funds shall not be invaded or distributed except

5 as expressly authorized in this Act or in the Settlement

6 Agreement.

7 (j) TRANSFER OF MONEY AMONG TRUST FUNDS.—

8 The Tribe, in consultation with the Secretary, shall have

9 the authority to transfer principal and accumulated in10 come between Trust Funds only as follows:

11 (1) Funds may be transferred among the Ca12 tawba Economic Development Trust Fund, the Ca13 tawba Land Acquisition Trust Fund and the Ca14 tawba Social Services and Elderly Assistance Trust

15 Fund, and from any of those three Trust Funds into

16 the Catawba Education Trust Fund; except, that the

17 mandatory share of State, local, and private sector

18 funds invested in the original corpus of the Catawba

19 Education Trust Fund shall not be transferred to

20 any other Trust Fund.

21 (2) Any Trust Fund, except for the Catawba

22 Education Trust Fund, may be dissolved by a vote

23 of two-thirds of those Members eligible to vote, and

24 the assets in such Trust Fund shall be transferred

25 to the remaining Trust Funds; except, that (A) no
39

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1 assets shall be transferred from any of the Trust

2 Funds into the Catawba Per Capita Payment Trust

3 Fund, and (B) the mandatory share of State, local

4 and private funds invested in the original corpus of

5 the Catawba Education Trust Fund may not be

6 transferred or used for any non-educational pur7 poses.

8 (3) The dissolution of any Trust Fund shall re9 quire the approval of the Secretary pursuant to the

10 Secretarial approval provisions set forth in sub11 section (b)(5)(D) of this section.

12 (k) TRUST FUND ACCOUNTING.—(1) The Secretary

13 shall account to the Tribe periodically, and at least annu14 ally, for all Catawba Trust Funds being managed and ad15 ministered by the Secretary. The accounting shall—

16 (A) identify the assets in which the Trust

17 Funds have been invested during the relevant period;

18 (B) report income earned during the period,

19 distinguishing current income and capital gains;

20 (C) indicate dates and amounts of distributions

21 to the Tribe, separately distinguishing current in22 come, accumulated income, and distributions of prin23 cipal; and

24 (D) identify any invasions or repayments of

25 principal during the relevant period and record pro-
40

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1 visions the Tribe has made for repayment or restora2 tion of principal.

3 (2)(A) Any outside investment management firm en4 gaged by the Tribe shall account to the Tribe and sepa5 rately to the Secretary at periodic intervals, at least quar6 terly. Its accounting shall—

7 (i) identify the assets in which the Trust Funds

8 have been invested during the relevant period;

9 (ii) report income earned during the period,

10 separating current income and capital gains;

11 (iii) indicate dates and amounts of distributions

12 to the Tribe, distinguishing current income, accumu13 lated income, and distributions of principal; and

14 (iv) identify any invasions or repayments of

15 principal during the relevant period and record pro16 visions the Tribe has made for repayment or restora17 tion of principal.

18 (B) Prior to distributing principal from any Trust

19 Fund, the investment management firm shall notify the

20 Secretary of the proposed distribution and the Tribe’s pro21 posed use of such funds, following procedures to be agreed

22 upon by the investment management firm, the Secretary,

23 and the Tribe. The Secretary shall have 15 days within

24 which to object in writing to any such invasion of prin-
41

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1 cipal. Failure to object will be deemed approval of the dis2 tribution.

3 (C) All Trust Funds held and managed by any invest4 ment management firm shall be audited annually by a cer5 tified public accounting firm approved by the Secretary,

6 and a copy of the annual audit shall be submitted to the

7 Tribe and to the Secretary within four months following

8 the close of the Trust Funds’s fiscal year.

9 (l) REPLACEMENT OF INVESTMENT MANAGEMENT

10 FIRM AND MODIFICATION OF INVESTMENT MANAGEMENT

11 PLAN.—The Tribe shall not replace the investment man12 agement firm approved by the Secretary without prior

13 written notification to the Secretary and approval by the

14 Secretary of any investment management firm chosen by

15 the Tribe as a replacement. Such Secretarial approval

16 shall be given or denied in accordance with the Secretarial

17 approval provisions contained in subsection (b)(5)(D) of

18 this section. The Tribe and its investment management

19 firm shall also notify the Secretary in writing of any revi20 sions in the investment management plan which materially

21 increase investment risk or significantly change the invest22 ment management plan, or the agreement, made in con23 sultation with the Secretary pursuant to which the outside

24 management firm was retained.
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1 (m) TRUST FUNDS NOT COUNTED FOR CERTAIN

2 PURPOSES; USE AS MATCHING FUNDS.—None of the

3 funds, assets, income, payments, or distributions from the

4 trust funds established pursuant to this section shall at

5 any time affect the eligibility of the Tribe or its Members

6 for, or be used as a basis for denying or reducing funds

7 to the Tribe or its Members under any Federal, State, or

8 local program. Distributions from these Trust Funds may

9 be used as matching funds, where appropriate, for Federal

10 grants or loans.

11 SEC. 12. ESTABLISHMENT OF EXPANDED RESERVATION.

12 (a) EXISTING RESERVATION.—The Secretary is au13 thorized to receive from the State, by such transfer docu14 ment as the Secretary and the State shall approve, all

15 rights, title, and interests of the State in and to the Exist16 ing Reservation to be held by the United States as trustee

17 for the Tribe, and, effective on the date of such transfer,

18 the obligation of the State as trustee for the Tribe with

19 respect to such land shall cease.

20 (b) EXPANDED RESERVATION.—(1) The Existing

21 Reservation shall be expanded in the manner prescribed

22 by the Settlement Agreement.

23 (2) Within 180 days following the date of the enact24 ment of this Act, the Secretary, after consulting with the

25 Tribe, shall ascertain the boundaries and area of the exist-
43

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1 ing reservation. In addition, the Secretary, after consult2 ing with the Tribe, shall engage a professional land plan3 ning firm as provided in the Settlement Agreement. The

4 Secretary shall bear the cost of all services rendered pur5 suant to this section.

6 (3) The Tribe may identify, purchase and request

7 that the Secretary place into reservation status, tracts of

8 lands in the manner prescribed by the Settlement Agree9 ment. The Tribe may not request that any land be placed

10 in reservation status, unless those lands were acquired by

11 the Tribe and qualify for reservation status in full compli12 ance with the Settlement Agreement, including section 14

13 thereof.

14 (4) The Secretary shall bear the cost of all title ex15 aminations, preliminary subsurface soil investigations, and

16 level one environmental audits to be performed on each

17 parcel contemplated for purchase by the Tribe or the Sec18 retary for the Expanded Reservation, and shall report the

19 results to the Tribe. The Secretary’s or the Tribe’s pay20 ment of any option fee and the purchase price may be

21 drawn from the Catawba Land Acquisition Trust Fund.

22 (5) The total area of the Expanded Reservation shall

23 be limited to 3,000 acres, including the Existing Reserva24 tion, but the Tribe may exclude from this limit up to 600

25 acres of additional land under the conditions set forth in
44

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1 the Settlement Agreement. The Tribe may seek to have

2 the permissible area of the Expanded Reservation en3 larged by an additional 600 acres as set forth in the Set4 tlement Agreement.

5 (6) All lands acquired for the Expanded Reservation

6 shall be held in trust together with the Existing Reserva7 tion which the State is to convey to the United States.

8 (7) Nothing in this Act shall prohibit the Secretary

9 from providing technical and financial assistance to the

10 Tribe to fulfill the purposes of this section.

11 (c) EXPANSION ZONES.—(1) Subject to the condi12 tions, criteria, and procedures set forth in the Settlement

13 Agreement, the Tribe shall endeavor at the outset to ac14 quire contiguous tracts for the Expanded Reservation in

15 the ‘‘Catawba Reservation Primary Expansion Zone’’, as

16 defined in the Settlement Agreement.

17 (2) Subject to the conditions, criteria, and procedures

18 set forth in the Settlement Agreement, the Tribe may elect

19 to purchase contiguous tracts in an alternative area, the

20 ‘‘Catawba Reservation Secondary Expansion Zone’’, as de21 fined in the Settlement Agreement.

22 (3) The Tribe may propose different or additional ex23 pansion zones subject to the authorizations required in the

24 Settlement Agreement and the State implementing legisla25 tion.
45

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1 (d) NON-CONTIGUOUS TRACTS.—The Tribe, in con2 sultation with the Secretary, shall take such actions as are

3 reasonable to expand the Existing Reservation by assem4 bling a composite tract of contiguous parcels that border

5 and surround the Existing Reservation. Before requesting

6 that any non-contiguous tract be placed in Reservation

7 status, the Tribe shall comply with section 14 of the Set8 tlement Agreement. Upon the approval of the Tribe’s ap9 plication under and in accordance with section 14 of the

10 Settlement Agreement, the Secretary, in consultation with

11 the Tribe, may proceed to place non-contiguous tracts in

12 Reservation status. No purchases of non-contiguous tracts

13 shall be made for the Reservation except as set forth in

14 the Settlement Agreement and the State implementing

15 legislation.

16 (e) VOLUNTARY LAND PURCHASES.—(1) The power

17 of eminent domain shall not be used by the Secretary or

18 any governmental authority in acquiring parcels of land

19 for the benefit of the Tribe, whether or not the parcels

20 are to be part of the Reservation. All such purchases shall

21 be made only from willing sellers by voluntary conveyances

22 subject to the terms of the Settlement Agreement.

23 (2) Conveyances by private land owners to the Sec24 retary or to the Tribe for the Expanded Reservation will

25 be deemed, however, to be involuntary conversions within
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1 the meaning of section 1033 of the Internal Revenue Code

2 of 1986.

3 (3) Notwithstanding any other provision of this sec4 tion and the provisions of the first section of the Act of

5 August 1, 1888 (ch. 728, 25 Stat. 357; 40 U.S.C. 257),

6 and the first section of the Act of February 26, 1931 (ch.

7 307, 46 Stat. 1421; 40 U.S.C. 258a), the Secretary or

8 the Tribe may acquire a less than complete interest in land

9 otherwise qualifying under section 14 of the Settlement

10 Agreement for treatment as Reservation land for the bene11 fit of the Tribe from the ostensible owner of the land if

12 the Secretary or the Tribe and the ostensible owner have

13 agreed upon the identity of the land to be sold and upon

14 the purchase price and other terms of sale. If the osten15 sible owner agrees to the sale, the Secretary may use con16 demnation proceedings to perfect or clear title and to ac17 quire any interests of putative co-tenants whose address

18 is unknown or the interests of unknown or unborn heirs

19 or persons subject to mental disability.

20 (f) TERMS AND CONDITIONS OF ACQUISITION.—All

21 properties acquired by the Secretary for the Tribe or ac22 quired by the Tribe shall be acquired subject to the terms

23 and conditions set forth in the Settlement Agreement. The

24 Tribe and the Secretary, acting on behalf of the Tribe and

25 with its consent, are also authorized to acquire Reserva-
47

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1 tion and non-Reservation lands using the methods of fi2 nancing described in the Settlement Agreement.

3 (g) AUTHORITY TO ERECT PERMANENT IMPROVE4 MENTS ON EXISTING AND EXPANDED RESERVATION

5 LAND AND NON-RESERVATION LAND HELD IN TRUST.—

6 Notwithstanding any other provision of law or regulation,

7 the Attorney General of the United States may approve

8 any deed or other instrument which conveys to the United

9 States lands purchased pursuant to the provisions of this

10 section and the Settlement Agreement. The Secretary or

11 the Tribe may erect permanent improvements of a sub12 stantial value, or any other improvements authorized by

13 law on such land after such land is conveyed to the United

14 States.

15 (h) EASEMENTS OVER RESERVATION.—(1) The ac16 quisition of lands for the Expanded Reservation shall not

17 extinguish any easements or rights-of-way then encumber18 ing such lands unless the Secretary or the Tribe enters

19 into a written agreement with the owners terminating such

20 easements or rights-of-way.

21 (2)(A) The Tribe, with the approval of the Secretary,

22 shall have the power to grant or convey easements and

23 rights-of-way, in a manner consistent with the Settlement

24 Agreement.
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1 (B) Unless the Tribe and the State agree upon a

2 valuation formula for pricing easements over the Reserva3 tion, the Secretary shall be subject to proceedings for con4 demnation and eminent domain to acquire easements and

5 rights of way for public purposes through the Reservation

6 under the laws of the State in circumstances where no

7 other reasonable access is available.

8 (C) With the approval of the Tribe, the Secretary

9 may grant easements or rights-of-way over the Reserva10 tion for private purposes, and implied easements of neces11 sity shall apply to all lands acquired by the Tribe, unless

12 expressly excluded by the parties.

13 (i) JURISDICTIONAL STATUS.—Only land made part

14 of the Reservation shall be governed by the special juris15 dictional provisions set forth in the Settlement Agreement

16 and the State Act.

17 (j) SALE AND TRANSFER OF RESERVATION

18 LANDS.—With the approval of the Secretary, the Tribe

19 may sell, exchange, or lease lands within the Reservation,

20 and sell timber or other natural resources on the Reserva21 tion under circumstances and in the manner prescribed

22 by the Settlement Agreement and the State Act.

23 (k) TIME LIMIT ON ACQUISITIONS.—All acquisitions

24 of contiguous land to expand the Reservation or of non25 contiguous lands to be placed in Reservation status shall
49

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1 be completed or under contract of purchase within 10

2 years from the date the last payment is made into the

3 Land Acquisition Trust; except that for a period of 20

4 years after the date the last payment is made into the

5 Catawba Land Acquisition Trust Fund, the Tribe may,

6 subject to the limitation on the total size of the Reserva7 tion, continue to add parcels to up to two Reservation

8 areas so long as the parcels acquired are contiguous to

9 one of those two Reservation areas.

10 (l) LEASES OF RESERVATION LANDS.—The provi11 sions of the first section of the Act of August 9, 1955

12 (ch. 615, 69 Stat. 539; 25 U.S.C. 415) shall not apply

13 to the Tribe and its Reservation. The Tribe, with the ap14 proval of the Secretary, shall be authorized to lease its

15 Reservation lands for terms up to but not exceeding 99

16 years.

17 (m) NON-APPLICABILITY OF BIA LAND ACQUISITION

18 REGULATIONS.—The general land acquisition regulations

19 of the Bureau of Indian Affairs, contained in part 151

20 of title 25, Code of Federal Regulations, shall not apply

21 to the acquisition of lands authorized by this section.

22 SEC. 13. NON-RESERVATION PROPERTIES.

23 (a) ACQUISITION OF NON-RESERVATION PROP24 ERTIES.—The Tribe may draw upon the corpus or accu25 mulated income of the Catawba Land Acquisition Trust
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1 Fund or the Catawba Economic Development Trust Fund

2 to acquire and hold parcels of real estate outside the Res3 ervation for the purposes and in the manner delineated

4 in the Settlement Agreement. Jurisdiction and status of

5 all non-Reservation lands shall be governed by section 15

6 of the Settlement Agreement.

7 (b) AUTHORITY TO DISPOSE OF LANDS.—Notwith8 standing any other provision of law, the Tribe may lease,

9 sell, mortgage, restrict, encumber, or otherwise dispose of

10 such non-Reservation lands in the same manner as other

11 persons and entities under State law, and the Tribe as

12 land owner shall be subject to the same obligations and

13 responsibilities as other persons and entities under State,

14 Federal, and local law.

15 (c) RESTRICTIONS.—Ownership and transfer of non16 Reservation parcels shall not be subject to Federal law re17 strictions on alienation, including (but not limited to) the

18 restrictions imposed by Federal common law and the pro19 visions of the section 2116 of the Revised Statutes (25

20 U.S.C. 177).

21 SEC. 14. GAMES OF CHANCE.

22 (a) INAPPLICABILITY OF INDIAN GAMING REGU23 LATORY ACT.—The Indian Gaming Regulatory Act (25

24 U.S.C. 2701 et seq.) shall not apply to the Tribe.
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1 (b) GAMES OF CHANCE GENERALLY.—The Tribe

2 shall have the rights and responsibilities set forth in the

3 Settlement Agreement and the State Act with respect to

4 the conduct of games of chance. Except as specifically set

5 forth in the Settlement Agreement and the State Act, all

6 laws, ordinances, and regulations of the State, and its po7 litical subdivisions, shall govern the regulation of gambling

8 devices and the conduct of gambling or wagering by the

9 Tribe on and off the Reservation.

10 SEC. 15. GENERAL PROVISIONS.

11 (a) SEVERABILITY.—If any provision of section 4(a),

12 5, or 6 of this Act is rendered invalid by the final action

13 of a court, then all of this Act is invalid. Should any other

14 section of this Act be rendered invalid by the final action

15 of a court, the remaining sections of this Act shall remain

16 in full force and effect.

17 (b) INTERPRETATION CONSISTENT WITH SETTLE18 MENT AGREEMENT.—To the extent possible, this Act shall

19 be construed in a manner consistent with the Settlement

20 Agreement and the State Act. In the event of a conflict

21 between the provisions of this Act and the Settlement

22 Agreement or the State Act, the terms of this Act shall

23 govern. In the event of a conflict between the State Act

24 and the Settlement Agreement, the terms of the State Act

25 shall govern. The Settlement Agreement and the State Act
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1 shall be maintained on file and available for public inspec2 tion at the Department of the Interior.

3 (c) IMPACT OF SUBSEQUENTLY ENACTED LAWS.—

4 The provisions of any Federal law enacted after the date

5 of enactment of this Act shall not apply in the State if

6 such provision would materially affect or preempt the ap7 plication of the laws of the State, including application

8 of the laws of the State applicable to lands owned by or

9 held in trust for Indians, or Indian Nations, Tribes or

10 bands of Indians. However, such Federal law shall apply

11 within the State if the State grants its approval by a law

12 or joint resolution enacted by the General Assembly of

13 South Carolina and signed by the Governor.

14 (d) ELIGIBILITY FOR CONSIDERATION TO BECOME

15 AN ENTERPRISE ZONE OR GENERAL PURPOSE FOREIGN

16 TRADE ZONE.—Notwithstanding the provisions of any

17 other law or regulation, the Tribe shall be eligible to be18 come, sponsor and operate (1) an ‘‘enterprise zone’’ pursu19 ant to title VII of the Housing and Community Develop20 ment Act of 1987 (42 U.S.C. 11501–11505) or any other

21 applicable Federal (or State) laws or regulations; or (2)

22 a ‘‘foreign-trade zone’’ or ‘‘subzone’’ pursuant to the For23 eign Trade Zones Act of 1934, as amended (19 U.S.C.

24 81a–81u) and the regulations thereunder, to the same ex25 tent as other federally recognized Indian Tribes.
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1 (e) GENERAL APPLICABILITY OF STATE LAW.—Con2 sistent with the provisions of section 4(a)(2), the provi3 sions of South Carolina Code Annotated, section 27–16–

4 40, and section 19.1 of the Settlement Agreement are ap5 proved, ratified, and confirmed by the United States, and

6 shall be complied with in the same manner and to the

7 same extent as if they had been enacted into Federal law.

8 (f) SUBSEQUENT AMENDMENTS TO THE SETTLE9 MENT AGREEMENT OR STATE ACT.—Consent is hereby

10 given to the Tribe and the State to amend the Settlement

11 Agreement and the State Act if consent to such amend12 ment is given by both the State and the Tribe, and if such

13 amendment relates to—

14 (1) the jurisdiction, enforcement, or application

15 of civil, criminal, regulatory, or tax laws of the Tribe

16 and the State;

17 (2) the allocation or determination of govern18 mental responsibility of the State and the Tribe over

19 specified subject matters or specified geographical

20 areas, or both, including provision for concurrent ju21 risdiction between the State and the Tribe;

22 (3) the allocation of jurisdiction between the

23 tribal courts and the State courts; or

24 (4) technical and other corrections and revisions

25 to conform the State Act and the Agreement in
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1 Principle attached to the State Act to the Settlement

2 Agreement.

3 SEC. 16. TAX TREATMENT OF INCOME AND TRANSACTIONS.

4 Notwithstanding any provision of the State Act, Set5 tlement Agreement or this Act (including any amendment

6 made under section 15(f)) any income or transaction oth7 erwise taxable shall remain taxable under the general prin8 ciples of the Internal Revenue Code of 1986.

9 SEC. 17. EFFECTIVE DATE.

10 Except for section 12, the provisions of this Act shall

11 become effective upon the transfer of the Existing Res12 ervation under section 12 to the Secretary.

Passed the Senate August 6 (legislative day, June

30), 1993.

Attest:

Secretary.
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