II

106TH CONGRESS

1ST SESSION S. 401

To provide for business development and trade promotion for Native

Americans, and for other purposes.

IN THE SENATE OF THE UNITED STATES

FEBRUARY 10, 1999

Mr. CAMPBELL (for himself and Mr. INOUYE) introduced the following bill;

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

A BILL

To provide for business development and trade promotion

for Native Americans, and for other purposes.

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

3 SECTION 1. SHORT TITLE.

4 This Act may be cited as the ‘‘Native American Busi5 ness Development, Trade Promotion, and Tourism Act of

6 1999’’.

7 SEC. 2. FINDINGS; PURPOSES.

8 (a) FINDINGS.—Congress finds that—

9 (1) clause 3 of section 8 of article I of the

10 United States Constitution recognizes the special re-
2

•S 401 IS

1 lationship between the United States and Indian

2 tribes;

3 (2) beginning in 1970, with the inauguration by

4 the Nixon Administration, of the Indian self-deter5 mination era of the Federal Government, each Presi6 dent has confirmed the special government-to-gov7 ernment relationship between Indian tribes and the

8 United States;

9 (3) in 1994, President Clinton issued an Execu10 tive memorandum to the heads of departments and

11 agencies that obligated all Federal departments and

12 agencies, particularly those that have an impact on

13 economic development, to evaluate the potential im14 pacts of their actions on Indian tribes;

15 (4) consistent with the principles of inherent

16 tribal sovereignty and the special relationship be17 tween Indian tribes and the United States, Indian

18 tribes retain the right to enter into contracts and

19 agreements to trade freely, and seek enforcement of

20 treaty and trade rights;

21 (5) Congress has carried out the responsibility

22 of the United States for the protection and preserva23 tion of Indian tribes and the resources of Indian

24 tribes through the endorsement of treaties, and the
3

•S 401 IS

1 enactment of other laws, including laws that provide

2 for the exercise of administrative authorities;

3 (6) the United States has an obligation to

4 guard and preserve the sovereignty of Indian tribes

5 in order to foster strong tribal governments, Indian

6 self-determination, and economic self-sufficiency

7 among Indian tribes;

8 (7) the capacity of Indian tribes to build strong

9 tribal governments and vigorous economies is hin10 dered by the inability of Indian tribes to engage

11 communities that surround Indian lands and outside

12 investors in economic activities on Indian lands;

13 (8) despite the availability of abundant natural

14 resources on Indian lands and a rich cultural legacy

15 that accords great value to self-determination, self16 reliance, and independence, American Indians and

17 Alaska Natives suffer higher rates of unemployment,

18 poverty, poor health, substandard housing, and asso19 ciated social ills than those of any other group in the

20 United States;

21 (9) the United States has an obligation to as22 sist Indian tribes with the creation of appropriate

23 economic and political conditions with respect to In24 dian lands to—
4

•S 401 IS

1 (A) encourage investment from outside

2 sources that do not originate with the tribes;

3 and

4 (B) facilitate economic ventures with out5 side entities that are not tribal entities;

6 (10) the economic success and material well7 being of American Indian and Alaska Native com8 munities depends on the combined efforts of the

9 Federal Government, tribal governments, the private

10 sector, and individuals;

11 (11) the lack of employment and entrepreneur12 ial opportunities in the communities referred to in

13 paragraph (8) has resulted in a multigenerational

14 dependence on Federal assistance that is—

15 (A) insufficient to address the magnitude

16 of needs; and

17 (B) unreliable in availability; and

18 (12) the twin goals of economic self-sufficiency

19 and political self-determination for American Indians

20 and Alaska Natives can best be served by making

21 available to address the challenges faced by those

22 groups—

23 (A) the resources of the private market;

24 (B) adequate capital; and

25 (C) technical expertise.
5

•S 401 IS

1 (b) PURPOSES.—The purposes of this Act are as fol2 lows:

3 (1) To revitalize economically and physically

4 distressed Indian reservation economies by—

5 (A) encouraging the formation of new busi6 nesses by eligible entities, the expansion of ex7 isting businesses; and

8 (B) facilitating the movement of goods to

9 and from Indian reservations and the provision

10 of services by Indians.

11 (2) To promote private investment in the econo12 mies of Indian tribes and to encourage the sustain13 able development of resources of Indian tribes and

14 tribal- and Indian-owned businesses.

15 (3) To promote the long-range sustained growth

16 of the economies of Indian tribes.

17 (4) To raise incomes of Indians in order to re18 duce poverty levels and provide the means for

19 achieving a higher standard of living on Indian res20 ervations.

21 (5) To encourage intertribal, regional, and

22 international trade and business development in

23 order to assist in increasing productivity and the

24 standard of living of members of Indian tribes and
6

•S 401 IS

1 improving the economic self-sufficiency of the gov2 erning bodies of Indian tribes.

3 (6) To promote economic self-sufficiency and

4 political self-determination for Indian tribes and

5 members of Indian tribes.

6 SEC. 3. DEFINITIONS.

7 In this Act:

8 (1) BOARD.—The term ‘‘Board’’ has the mean9 ing given that term in the first section of the Act

10 entitled ‘‘To provide for the establishment, oper11 ation, and maintenance of foreign-trade zones in

12 ports of entry in the United States, to expedite and

13 encourage foreign commerce, and for other pur14 poses’’, approved June 18, 1934 (19 U.S.C. 81a).

15 (2) DIRECTOR.—The term ‘‘Director’’ means

16 Director of Native American Business Development

17 appointed under section 4(a).

18 (3) ELIGIBLE ENTITY.—The term ‘‘eligible en19 tity’’ means an Indian tribe, tribal organization, In20 dian arts and crafts organization, tribal enterprise,

21 tribal marketing cooperative, or Indian-owned busi22 ness.

23 (4) FEDERAL AGENCY.—The term ‘‘Federal

24 agency’’ means an agency, as that term is defined

25 in section 551(1) of title 5, United States Code.
7

•S 401 IS

1 (5) FOUNDATION.—The term ‘‘Foundation’’

2 means the Rural Development Foundation.

3 (6) INDIAN.—The term ‘‘Indian’’ has the mean4 ing given that term in section 4(d) of the Indian

5 Self-Determination and Education Assistance Act

6 (25 U.S.C. 450b(d)).

7 (7) INDIAN ARTS AND CRAFTS ORGANIZA8 TION.—The term ‘‘Indian arts and crafts organiza9 tion’’ has the meaning given that term under section

10 2 of the Act of August 27, 1935 (49 Stat. 891,

11 chapter 748; 25 U.S.C. 305a).

12 (8) INDIAN GOODS AND SERVICES.—The term

13 ‘‘Indian goods and services’’ means—

14 (A) Indian goods, within the meaning of

15 section 2 of the Act of August 27, 1935 (com16 monly known as the ‘‘Indian Arts and Crafts

17 Act’’) (49 Stat. 891, chapter 748; 25 U.S.C.

18 305a);

19 (B) goods produced or originating within

20 an eligible entity; and

21 (C) services provided by eligible entities.

22 (9) INDIAN LANDS.—The term ‘‘Indian lands’’

23 has the meaning given that term in section 4(4) of

24 the Indian Gaming Regulatory Act (25 U.S.C.

25 2703(4)).
8

•S 401 IS

1 (10) INDIAN-OWNED BUSINESS.—The term ‘‘In2 dian-owned business’’ means an entity organized for

3 the conduct of trade or commerce with respect to

4 which at least 50 percent of the property interests

5 of the entity are owned by Indians or Indian tribes

6 (or a combination thereof).

7 (11) INDIAN TRIBE.—The term ‘‘Indian tribe’’

8 has the meaning given that term in section 4(e) of

9 the Indian Self-Determination and Education Assist10 ance Act (25 U.S.C. 450b(e)).

11 (12) OFFICE.—The term ‘‘Office’’ means the

12 Office of Native American Business Development es13 tablished under section 4(a).

14 (13) SECRETARY.—The term ‘‘Secretary’’

15 means the Secretary of Commerce.

16 (14) TRIBAL ENTERPRISE.—The term ‘‘tribal

17 enterprise’’ means a commercial activity or business

18 managed or controlled by an Indian tribe.

19 (15) TRIBAL MARKETING COOPERATIVE.—The

20 term ‘‘tribal marketing cooperative’’ shall have the

21 meaning given that term by the Secretary, in con22 sultation with the Secretary of the Interior.

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

24 organization’’ has the meaning given that term in
9

•S 401 IS

1 section 4(l) of the Indian Self-Determination and

2 Education Assistance Act (25 U.S.C. 450b(l)).

3 SEC. 4. OFFICE OF NATIVE AMERICAN BUSINESS DEVELOP4 MENT.

5 (a) IN GENERAL.—

6 (1) ESTABLISHMENT.—There is established

7 within the Department of Commerce an office

8 known as the Office of Native American Business

9 Development.

10 (2) DIRECTOR.—The Office shall be headed by

11 a Director, appointed by the Secretary, whose title

12 shall be the Director of Native American Business

13 Development. The Director shall be compensated at

14 a rate not to exceed level V of the Executive Sched15 ule under section 5316 of title 5, United States

16 Code.

17 (b) DUTIES OF THE SECRETARY.—

18 (1) IN GENERAL.—The Secretary, acting

19 through the Director, shall ensure the coordination

20 of Federal programs that provide assistance, includ21 ing financial and technical assistance, to eligible en22 tities for increased business, the expansion of trade

23 by eligible entities, and economic development on In24 dian lands.
10

•S 401 IS

1 (2) ACTIVITIES.—In carrying out the duties de2 scribed in paragraph (1), the Secretary, acting

3 through the Director, shall ensure the coordination

4 of, or, as appropriate, carry out—

5 (A) Federal programs designed to provide

6 legal, accounting, or financial assistance to eli7 gible entities;

8 (B) market surveys;

9 (C) the development of promotional mate10 rials;

11 (D) the financing of business development

12 seminars;

13 (E) the facilitation of marketing;

14 (F) the participation of appropriate Fed15 eral agencies or eligible entities in trade fairs;

16 (G) any activity that is not described in

17 subparagraphs (A) through (F) that is related

18 to the development of appropriate markets; and

19 (H) any other activity that the Secretary,

20 in consultation with the Director, determines to

21 be appropriate to carry out this section.

22 (3) ASSISTANCE.—In conjunction with the ac23 tivities described in paragraph (2), the Secretary,

24 acting through the Director, shall provide—
11

•S 401 IS

1 (A) financial assistance, technical assist2 ance, and administrative services to eligible en3 tities to assist those entities with—

4 (i) identifying and taking advantage

5 of business development opportunities; and

6 (ii) compliance with appropriate laws

7 and regulatory practices; and

8 (B) such other assistance as the Secretary,

9 in consultation with the Director, determines to

10 be necessary for the development of business

11 opportunities for eligible entities to enhance the

12 economies of Indian tribes.

13 (4) PRIORITIES.—In carrying out the duties

14 and activities described in paragraphs (2) and (3),

15 the Secretary, acting through the Director, shall give

16 priority to activities that—

17 (A) provide the greatest degree of eco18 nomic benefits to Indians; and

19 (B) foster long-term stable economies of

20 Indian tribes.

21 (5) PROHIBITION.—The Secretary may not pro22 vide under this section assistance for any activity re23 lated to the operation of a gaming activity on Indian

24 lands pursuant to the Indian Gaming Regulatory

25 Act (25 U.S.C. 2710 et seq.).
12

•S 401 IS

1 SEC. 5. NATIVE AMERICAN TRADE AND EXPORT PRO2 MOTION.

3 (a) IN GENERAL.—The Secretary, acting through the

4 Director, shall carry out a Native American export and

5 trade promotion program (referred to in this section as

6 the ‘‘program’’).

7 (b) COORDINATION OF FEDERAL PROGRAMS AND

8 SERVICES.—In carrying out the program, the Secretary,

9 acting through the Director, and in cooperation with the

10 heads of appropriate Federal agencies, shall ensure the co11 ordination of Federal programs and services designed to—

12 (1) develop the economies of Indian tribes; and

13 (2) stimulate the demand for Indian goods and

14 services that are available to eligible entities.

15 (c) ACTIVITIES.—In carrying out the duties described

16 in subsection (b), the Secretary, acting through the Direc17 tor, shall ensure the coordination of, or, as appropriate,

18 carry out—

19 (1) Federal programs designed to provide tech20 nical or financial assistance to eligible entities;

21 (2) the development of promotional materials;

22 (3) the financing of appropriate trade missions;

23 (4) the marketing of Indian goods and services;

24 (5) the participation of appropriate Federal

25 agencies or eligible entities in international trade

26 fairs; and
13

•S 401 IS

1 (6) any other activity related to the develop2 ment of markets for Indian goods and services.

3 (d) TECHNICAL ASSISTANCE.—In conjunction with

4 the activities described in subsection (c), the Secretary,

5 acting through the Director, shall provide technical assist6 ance and administrative services to eligible entities to as7 sist those entities with—

8 (1) the identification of appropriate markets for

9 Indian goods and services;

10 (2) entering the markets referred to in para11 graph (1);

12 (3) compliance with foreign or domestic laws

13 and practices with respect to financial institutions

14 with respect to the export and import of Indian

15 goods and services; and

16 (4) entering into financial arrangements to pro17 vide for the export and import of Indian goods and

18 services.

19 (e) PRIORITIES.—In carrying out the duties and ac20 tivities described in subsections (b) and (c), the Secretary,

21 acting through the Director, shall give priority to activities

22 that—

23 (1) provide the greatest degree of economic ben24 efits to Indians; and
14

•S 401 IS

1 (2) foster long-term stable international mar2 kets for Indian goods and services.

3 SEC. 6. INTERTRIBAL TOURISM DEMONSTRATION

4 PROJECTS.

5 (a) IN GENERAL.—

6 (1) DEMONSTRATION PROJECTS.—The Sec7 retary, acting through the Director, shall conduct a

8 Native American tourism program to facilitate the

9 development and conduct of tourism demonstration

10 projects by Indian tribes, on a tribal, intertribal, or

11 regional basis.

12 (2) PROJECTS.—

13 (A) IN GENERAL.—Under the program es14 tablished under this section, in order to assist

15 in the development and promotion of tourism

16 on and in the vicinity of Indian lands, the Sec17 retary, acting through the Director, shall, in co18 ordination with the Foundation, assist eligible

19 entities in the planning, development, and im20 plementation of tourism development dem21 onstration projects that meet the criteria de22 scribed in subparagraph (B).

23 (B) PROJECTS DESCRIBED.—In selecting

24 tourism development demonstration projects

25 under this section, the Secretary, acting
15

•S 401 IS

1 through the Director, shall select projects that

2 have the potential to increase travel and tour3 ism revenues by attracting visitors to Indian

4 lands and in the vicinity of Indian lands, in5 cluding projects that provide for—

6 (i) the development and distribution

7 of educational and promotional materials

8 pertaining to attractions located on and

9 near Indian lands;

10 (ii) the development of educational re11 sources to assist in private and public tour12 ism development on and in the vicinity of

13 Indian lands; and

14 (iii) the coordination of tourism-relat15 ed joint ventures and cooperative efforts

16 between eligible entities and appropriate

17 State and local governments that have ju18 risdiction over areas in the vicinity of In19 dian lands.

20 (3) GRANTS.—To carry out the program under

21 this section, the Secretary, acting through the Direc22 tor, may award grants or enter into other appro23 priate arrangements with Indian tribes, tribal orga24 nizations, intertribal consortia, or other tribal enti-
16

•S 401 IS

1 ties that the Secretary, in consultation with the Di2 rector, determines to be appropriate.

3 (4) LOCATIONS.—In providing for tourism de4 velopment demonstration projects under the pro5 gram under this section, the Secretary, acting

6 through the Director, shall provide for a demonstra7 tion project to be conducted—

8 (A) for Indians of the Four Corners area

9 located in the area adjacent to the border be10 tween Arizona, Utah, Colorado, and New Mex11 ico;

12 (B) for Indians of the northwestern area

13 that is commonly known as the Great North14 west (as determined by the Secretary);

15 (C) for the Oklahoma Indians in Okla16 homa; and

17 (D) for the Indians of the Great Plains

18 area (as determined by the Secretary).

19 (b) STUDIES.—The Secretary, acting through the Di20 rector, shall provide financial assistance, technical assist21 ance, and administrative services to participants that the

22 Secretary, acting through the Director, selects to carry out

23 a tourism development project under this section, with

24 respect to—
17

•S 401 IS

1 (1) feasibility studies conducted as part of that

2 project;

3 (2) market analyses;

4 (3) participation in tourism and trade missions;

5 and

6 (4) any other activity that the Secretary, in

7 consultation with the Director, determines to be ap8 propriate to carry out this section.

9 (c) INFRASTRUCTURE DEVELOPMENT.—The dem10 onstration projects conducted under this section shall in11 clude provisions to facilitate the development and financ12 ing of infrastructure, including the development of Indian

13 reservation roads in a manner consistent with title 23,

14 United States Code.

15 SEC. 7. REPORT TO CONGRESS.

16 (a) IN GENERAL.—Not later than 1 year after the

17 date of enactment of this Act, and annually thereafter,

18 the Secretary, in consultation with the Director, shall pre19 pare and submit to the Committee on Indian Affairs of

20 the Senate and the Committee on Resources of the House

21 of Representatives a report on the operation of the Office.

22 (b) CONTENTS OF REPORT.—Each report prepared

23 under subsection (a) shall include—

24 (1) for the period covered by the report, a sum25 mary of the activities conducted by the Secretary,
18

•S 401 IS

1 acting through the Director, in carrying out sections

2 4 through 6; and

3 (2) any recommendations for legislation that

4 the Secretary, in consultation with the Director, de5 termines to be necessary to carry out sections 4

6 through 6.

7 SEC. 8. FOREIGN-TRADE ZONE PREFERENCES.

8 (a) PREFERENCE IN ESTABLISHMENT OF FOREIGN9 TRADE ZONES IN INDIAN ENTERPRISE ZONES.—In proc10 essing applications for the establishment of foreign-trade

11 zones pursuant to the Act entitled ‘‘To provide for the es12 tablishment, operation, and maintenance of foreign-trade

13 zones in ports of entry of the United States, to expedite

14 and encourage foreign commerce, and for other purposes’’,

15 approved June 18, 1934 (19 U.S.C. 81a et seq.), the

16 Board shall consider, on a priority basis, and expedite, to

17 the maximum extent practicable, the processing of any ap18 plication involving the establishment of a foreign-trade

19 zone on Indian lands, including any Indian lands des20 ignated as an empowerment zone or enterprise community

21 pursuant to section 1391 of the Internal Revenue Code

22 of 1986.

23 (b) APPLICATION PROCEDURE.—In processing appli24 cations for the establishment of ports of entry pursuant

25 to the Act entitled ‘‘An Act making appropriations for
19

•S 401 IS

1 sundry civil expenses of the Government for the fiscal year

2 ending June thirtieth, nineteen hundred and fifteen, and

3 for other purposes’’, approved August 1, 1914 (19 U.S.C.

4 2), the Secretary of the Treasury shall, with respect to

5 any application involving the establishment of a port of

6 entry that is necessary to permit the establishment of a

7 foreign-trade zone on Indian lands—

8 (1) consider on a priority basis; and

9 (2) expedite, to the maximum extent prac10 ticable, the processing of that application.

11 (c) APPLICATION EVALUATION.—In evaluating appli12 cations for the establishment of foreign-trade zones and

13 ports of entry in connection with Indian lands, to the max14 imum extent practicable and consistent with applicable

15 law, the Board and Secretary of the Treasury shall ap16 prove the applications.

Æ