Calendar No. 687

105TH CONGRESS

2D SESSION S. 1905

[Report No. 105–363]

A BILL

To provide for equitable compensation for the

poses.Cheyenne River Sioux Tribe, and for other purOCTOBER 2, 1998

Reported with an amendment
II

Calendar No. 687

105TH CONGRESS

2D SESSION S. 1905

[Report No. 105–363]

To provide for equitable compensation for the Cheyenne River Sioux Tribe,

and for other purposes.

IN THE SENATE OF THE UNITED STATES

APRIL 2, 1998

Mr. DASCHLE (for himself and Mr. JOHNSON) introduced the following bill;

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

OCTOBER 2, 1998

Reported by Mr. CAMPBELL, with an amendment

[Strike out all after the enacting clause and insert the part printed in italic]

A BILL

To provide for equitable compensation for the Cheyenne

River Sioux 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 (a) SHORT TITLE.—This Act may be cited as the

5 ‘‘Cheyenne River Sioux Tribe Equitable Compensation

6 Act’’.
2

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1 SEC. 2. FINDINGS AND PURPOSES.

2 (a) FINDINGS.—The Congress finds that—

3 (1) Congress approved the Pick-Sloan Missouri

4 River Basin program by passing the Act of Decem5 ber 22, 1944, commonly known as the ‘‘Flood Con6 trol Act of 1944’’ (58 Stat. 887, chapter 665; 33

7 U.S.C. 701–1 et seq.)—

8 (A) to promote the general economic devel9 opment of the United States;

10 (B) to provide for irrigation above Sioux

11 City, Iowa;

12 (C) to protect urban and rural areas from

13 devastating floods of the Missouri River; and

14 (D) for other purposes;

15 (2) the Oahe Dam and Reservoir project is a

16 major component of the Pick-Sloan program, and

17 contributes to the economy of the United States by

18 generating a substantial amount of hydropower and

19 impounding a substantial quantity of water;

20 (3) notwithstanding the contributions referred

21 to in paragraph (1), the Oahe Dam and Reservoir

22 project has contributed little to the economy of the

23 Tribe;

24 (4) the Oahe Dam and Reservoir project over25 lies the eastern boundary of the Crow Creek Indian

26 Reservation;
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1 (5) the Oahe Dam and Reservoir project has—

2 (A) inundated the fertile, wooded bottom

3 lands of the Tribe along the Missouri River that

4 constituted the most productive agricultural

5 and pastoral lands of the Tribe and the home6 land of the members of the Tribe; and

7 (B) as a result of that inundation, severely

8 damaged the economy of the Tribe and the

9 members of the Tribe;

10 (6) the Secretary appointed a Joint Tribal Ad11 visory Committee that examined the Oahe Dam and

12 Reservoir project and that advisory committee cor13 rectly concluded that—

14 (A) the Federal Government did not jus15 tify, or fairly compensate the Tribe for, the

16 Oahe Dam and Reservoir project when the Fed17 eral Government acquired 104,492 acres of land

18 of the Tribe for that project; and

19 (B) the Tribe should be adequately com20 pensated for the taking described in subpara21 graph (A); and

22 (7) after applying the same method of analysis

23 used for the compensation of similarly situated In24 dian tribes, the Comptroller General of the United

25 States determined the amount of compensation for
4

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1 the taking described in paragraph (6) and deter2 mined that the appropriate amount of compensation

3 to pay the Tribe for the taking would be

4 $290,722,958;

5 (8) the Tribe is entitled to receiving additional

6 financial compensation for the taking described in

7 paragraph (6)(A) in a manner consistent with the

8 determination of the Comptroller General under

9 paragraph (7); and

10 (9) the establishment of a dual cash account

11 with the amounts made available to the Tribe under

12 this Act is consistent with the principles of self-gov13 ernance and self-determination.

14 (b) PURPOSES.—The purposes of this Act are as fol15 lows:

16 (1) To provide for additional financial com17 pensation to the Tribe for the taking of 104,402

18 acres of land of the Tribe for the Oahe Dam and

19 Reservoir project in a manner consistent with the

20 determination of the Comptroller General of the

21 United States described in subsection (a)(7).

22 (2) To provide for the establishment of the

23 Cheyenne River Sioux Recovery Account, a dual

24 cash account to be managed by the Office in order
5

•S 1905 RS

1 to make payments to the Tribe to carry out projects

2 under a plan prepared by the Tribe.

3 SEC. 3. DEFINITIONS.

4 In this Act:

5 (1) ACCOUNT.—The term ‘‘account’’ means the

6 Cheyenne River Sioux Recovery Account established

7 under section 4.

8 (2) CHEYENNE RIVER SIOUX TRIBE; TRIBE.—

9 The term ‘‘Cheyenne River Sioux Tribe’’ or ‘‘Tribe’’

10 means the Itazipco, Siha Sapa, Minnicoujou, and

11 Oohenumpa bands of the Great Sioux Nation that

12 reside on the Cheyenne Reservation, located in cen13 tral South Dakota.

14 (3) FUND ACCOUNT.—The term ‘‘Fund Ac15 count’’ means a consolidated account for tribal trust

16 funds in the Treasury of the United States that—

17 (A) is managed by the Secretary, through

18 the Office, in accordance with applicable law;

19 and

20 (B) as of the date of enactment of this

21 Act, is numbered 14X8365.

22 (4) OFFICE.—The term ‘‘Office’’ means the Of23 fice of Trust Fund Management within the Depart24 ment of the Interior.
6

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1 (5) PROGRAM.—The term ‘‘Program’’ means

2 the power program of the Pick-Sloan Missouri River

3 Basin program, administered by the Western Area

4 Power Administration.

5 (6) SECRETARY.—The term ‘‘Secretary’’ means

6 the Secretary of the Interior.

7 SEC. 4. CHEYENNE RIVER SIOUX TRIBAL RECOVERY AC8 COUNT.

9 (a) CHEYENNE RIVER SIOUX TRIBAL RECOVERY AC10 COUNT.—The Secretary of the Treasury shall establish in

11 the Fund Account a dual cash account to be known as

12 the ‘‘Cheyenne River Sioux Tribal Recovery Account’’.

13 The dual cash account shall have a principal component

14 and an interest component. The interest component of the

15 account shall be used to make payments to the Tribe in

16 accordance with this Act. The principal component of the

17 account may not be expended. The corpus and the income

18 of the account may be invested in accordance with applica19 ble law.

20 (b) FUNDING.—

21 (1) IN GENERAL.—Subject to paragraphs (2)

22 and (3), beginning with fiscal year 1999, and for

23 each fiscal year thereafter, until such time as the ag24 gregate of the amounts deposited is $290,722,958,

25 the Secretary of the Treasury shall deposit into the
7

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1 fund an amount equal to 10 percent of the receipts

2 from the deposits to the Treasury of the United

3 States for the preceding fiscal year from the Pro4 gram.

5 (2) PERCENTAGE AMOUNT.—Beginning with

6 fiscal year 2004, if no other law provides for the

7 compensation to parties in conjunction with an ap8 plicable plan for the Program, the Secretary of the

9 Treasury shall deposit into the fund an amount

10 equal to 25 percent of the receipts from the deposits

11 to the Treasury of the United States for the preced12 ing fiscal year from the Program, until such time as

13 the aggregate of the amounts deposited into the

14 fund from such receipts and receipts deposited under

15 paragraph (1) equals the amount specified in para16 graph (1).

17 (3) ADDITIONAL INTEREST.—If, by the date

18 that is 60 days after the end of a fiscal year, the

19 Secretary of the Treasury fails to deposit into the

20 fund an amount determined under paragraph (1) or

21 (2), the Secretary of the Treasury shall deposit, in

22 addition the applicable amount required to be depos23 ited under paragraph (1) or (2), interest on the

24 amount required to be deposited, determined for the

25 period beginning on the day after the termination of
8

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1 that 60-day period and ending on the date on which

2 the amount determined under paragraph (1) or (2)

3 is deposited, and based on a rate of interest that is

4 commonly referred to as the Treasury overnight

5 rate.

6 (c) WITHDRAWAL.—

7 (1) IN GENERAL.—Subject to paragraph (2), in

8 accordance with section 202 of the American Indian

9 Trust Fund Management Reform Act of 1994 (25

10 U.S.C. 4022), the Tribe may, in accordance with

11 that Act, voluntarily withdraw some or all of the

12 funds held in trust for the Tribe by the United

13 States and managed by the Secretary through the

14 Office.

15 (2) LIMITATION.—No amount of principal with16 drawn under this subsection may be expended by the

17 Tribe. The Tribe may withdraw funds under this

18 subsection on the condition that the Tribe may ex19 pend only the interest earned on the principal.

20 (e) PAYMENT OF INTEREST TO TRIBE.—In accord21 ance with this Act, the Secretary, acting through the Of22 fice, and in a manner consistent with the first section of

23 the Act of June 24, 1938 (52 Stat. 1037 et seq., chapter

24 648; 25 U.S.C. 162a) shall make payments to the Tribe

25 from the interest credited to the interest component of the
9

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1 account, beginning at the end of the first fiscal year dur2 ing which interest is credited to the account. The Tribe

3 shall use the payments made under this subsection only

4 for carrying out projects and programs pursuant to the

5 plan prepared under subsection (f).

6 (f) PLAN.—

7 (1) IN GENERAL.—The governing body of the

8 Tribe shall, not later than 18 months after the date

9 of enactment of this Act, prepare a plan for the use

10 of the payments made to the Tribe under subsection

11 (e).

12 (2) CONTENTS OF PLAN.—The plan developed

13 under this subsection shall provide for the manner

14 in which the Tribe will expend the payments referred

15 to in paragraph (1) to promote—

16 (A) economic development;

17 (B) infrastructure development;

18 (C) the educational, health, recreational,

19 and social welfare objectives of the Tribe and

20 its members; or

21 (D) any combination of the activities re22 ferred to in subparagraphs (A) through (C).

23 (3) PLAN REVIEW AND REVISION.—The Tribal

24 Council of the Tribe shall make available for review

25 and comment by the members of the Tribe a copy
10

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1 of the plan before the plan becomes final, in accord2 ance with procedures established by the Tribal

3 Council. The Tribal Council may, on an annual

4 basis, update the plan by revising the plan in a man5 ner that provides the members of the Tribe to review

6 and comment on any proposed revision.

7 (4) AUDIT.—The activities of the Tribe in car8 rying out the plan under this subsection shall be au9 dited as part of an annual audit conducted for the

10 Tribe. The auditors that conduct the audit shall in11 clude in the written findings of that audit a deter12 mination whether the funds received by the Tribe

13 under this section were expended in a manner con14 sistent with this section to carry out the plan under

15 this subsection.

16 (g) TRANSFERS; LIMITATIONS.—

17 (1) WITHDRAWAL AND TRANSFER OF FUNDS.—

18 In a manner consistent with the requirements of this

19 Act, upon request of the Secretary of the Interior,

20 the Secretary of the Treasury shall withdraw

21 amounts in the interest component of the account

22 and transfer such amounts to the Secretary of the

23 Interior for use in accordance with paragraph (2).

24 The Secretary of the Treasury may only withdraw
11

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1 funds from the account for the purpose specificed in

2 paragraph (2).

3 (2) PAYMENTS TO TRIBE.—The Secretary of

4 the Interior shall use the amounts transferred under

5 paragraph (1) only for the purpose of making an6 nual payments to the Tribe.

7 (4) PROHIBITION ON PER CAPITA PAYMENTS.—

8 No portion of any payment made under this sub9 section may be distributed to any member of the

10 Tribe on a per capita basis.

11 SEC. 5. ELIGIBILITY OF TRIBE FOR CERTAIN PROGRAMS

12 AND SERVICES.

13 (a) IN GENERAL.—No payment made to the Tribe

14 pursuant to this Act shall result in the reduction or denial

15 of any service or program to which, pursuant to Federal

16 law—

17 (1) the Tribe is otherwise entitled because of

18 the status of the Tribe as a federally recognized In19 dian tribe; or

20 (2) any individual who is a member of the Tribe

21 is entitled because of the status of the individual as

22 a member of the Tribe.

23 (b) EXEMPTIONS FROM TAXATION.—No payment

24 made pursuant to this Act shall be subject to any Federal

25 or State income tax.
12

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1 (c) POWER RATES.—No payment made pursuant to

2 this Act shall affect Pick-Sloan Missouri River Basin

3 power rates.

4 SEC. 6. SALE OF WESTERN AREA POWER AUTHORITY.

5 (a) IN GENERAL.—If, before the amount specified in

6 section 4(b)(1) is deposited into the Fund, the United

7 States sells or otherwise transfers title to the assets and

8 income of the Western Area Power Authority to an entity

9 other than the United States—

10 (1) an amount of the proceeds from that sale

11 equal to the difference between the amount specified

12 in section 4(b)(1) and the aggregate amount that, as

13 of the sale of power authority, had been paid into

14 the Fund, shall be deposited in the Fund; or

15 (2) the purchaser may assume responsibility for

16 making payments to the Treasury of the United

17 States for deposit in the Fund in amounts deter18 mined under section 4(b)(1).

19 (b) SECURITY.—If a purchaser assumes the respon20 sibility for making the payments and shall provide the

21 Tribe with appropriate security to secure those payments.

22 SECTION 1. SHORT TITLE.

23 This Act may be cited as the ‘‘Cheyenne River Sioux

24 Tribe Equitable Compensation Act’’.
13

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1 SEC. 2. FINDINGS AND PURPOSES.

2 (a) FINDINGS.—The Congress finds that—

3 (1) Congress approved the Pick-Sloan Missouri

4 River Basin program by passing the Act of December

5 22, 1944, commonly known as the ‘‘Flood Control Act

6 of 1944’’ (58 Stat. 887, chapter 665; 33 U.S.C. 701–

7 1 et seq.)—

8 (A) to promote the general economic devel9 opment of the United States;

10 (B) to provide for irrigation above Sioux

11 City, Iowa;

12 (C) to protect urban and rural areas from

13 devastating floods of the Missouri River; and

14 (D) for other purposes;

15 (2) the Oahe Dam and Reservoir project is a

16 major component of the Pick-Sloan program, and

17 contributes to the economy of the United States by

18 generating a substantial amount of hydropower and

19 impounding a substantial quantity of water;

20 (3) notwithstanding the contributions referred to

21 in paragraph (1), the Oahe Dam and Reservoir

22 project has contributed little to the economy of the

23 Tribe;

24 (4) the Oahe Dam and Reservoir project overlies

25 the eastern boundary of the Cheyenne River Sioux In26 dian Reservation;
14

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1 (5) the Oahe Dam and Reservoir project has—

2 (A) inundated the fertile, wooded bottom

3 lands of the Tribe along the Missouri River that

4 constituted the most productive agricultural and

5 pastoral lands of the Tribe and the homeland of

6 the members of the Tribe; and

7 (B) as a result of that inundation, severely

8 damaged the economy of the Tribe and the mem9 bers of the Tribe;

10 (6) the Secretary appointed a Joint Tribal Advi11 sory Committee that examined the Oahe Dam and

12 Reservoir project and that advisory committee con13 cluded that—

14 (A) the Federal Government did not justify,

15 or fairly compensate the Tribe for, the Oahe

16 Dam and Reservoir project when the Federal

17 Government acquired 104,492 acres of land of

18 the Tribe for that project; and

19 (B) the Tribe should be adequately com20 pensated for the acquisition described in sub21 paragraph (A);

22 (7) after applying the same method of analysis

23 used for the compensation of similarly situated In24 dian tribes, the Comptroller General of the United

25 States determined the amount of compensation for the
15

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1 acquisition described in paragraph (6) and deter2 mined that the appropriate amount of compensation

3 to pay the Tribe for the acquisition would be

4 $290,722,958;

5 (8) the Tribe is entitled to receiving additional

6 financial compensation for the acquisition described

7 in paragraph (6)(A) in a manner consistent with the

8 determination of the Comptroller General under para9 graph (7); and

10 (9) the establishment of a dual cash account with

11 the amounts made available to the Tribe under this

12 Act is consistent with the principles of self-governance

13 and self-determination.

14 (b) PURPOSES.—The purposes of this Act are as fol15 lows:

16 (1) To provide for additional financial com17 pensation to the Tribe for the acquisition of 104,492

18 acres of land of the Tribe for the Oahe Dam and Res19 ervoir project in a manner consistent with the deter20 mination of the Comptroller General of the United

21 States described in subsection (a)(7).

22 (2) To provide for the establishment of the Chey23 enne River Sioux Tribal Recovery Account, a dual

24 cash account to be managed by the Office of Trust

25 Fund Management of the Department of the Interior
16

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1 in order to make payments to the Tribe to carry out

2 projects under a plan prepared by the Tribe.

3 SEC. 3. DEFINITIONS.

4 In this Act:

5 (1) ACCOUNT.—The term ‘‘account’’ means the

6 Cheyenne River Sioux Tribal Recovery Account estab7 lished under section 4.

8 (2) CHEYENNE RIVER SIOUX TRIBE; TRIBE.—The

9 term ‘‘Cheyenne River Sioux Tribe’’ or ‘‘Tribe’’

10 means the Itazipco, Siha Sapa, Minniconjou, and

11 Oohenumpa bands of the Great Sioux Nation that re12 side on the Cheyenne Reservation, located in central

13 South Dakota.

14 (3) FUND.—The term ‘‘Fund’’ means a consoli15 dated account for tribal trust funds in the Treasury

16 of the United States that—

17 (A) is managed by the Secretary, through

18 the Office, in accordance with applicable law;

19 and

20 (B) as of the date of enactment of this Act,

21 is numbered 14X8365.

22 (4) OFFICE.—The term ‘‘Office’’ means the Office

23 of Trust Fund Management within the Department of

24 the Interior.
17

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1 (5) PROGRAM.—The term ‘‘Program’’ means the

2 power program of the Pick-Sloan Missouri River

3 Basin program, administered by the Western Area

4 Power Administration.

5 (6) SECRETARY.—The term ‘‘Secretary’’ means

6 the Secretary of the Interior.

7 (7) TRIBAL COUNCIL.—The term ‘‘Tribal Coun8 cil’’ means the governing body of the Tribe.

9 SEC. 4. CHEYENNE RIVER SIOUX TRIBAL RECOVERY AC10 COUNT.

11 (a) CHEYENNE RIVER SIOUX TRIBAL RECOVERY AC12 COUNT.—The Secretary of the Treasury shall establish in

13 the Fund a dual cash account to be known as the ‘‘Cheyenne

14 River Sioux Tribal Recovery Account’’. The dual cash ac15 count shall have a principal component and an interest

16 component. The interest component of the account shall be

17 used to make payments to the Tribe in accordance with this

18 Act. The principal component of the account may not be

19 expended. The corpus and the income of the account may

20 be invested in accordance with applicable law.

21 (b) FUNDING.—

22 (1) IN GENERAL.—Subject to paragraphs (2) and

23 (3), beginning with fiscal year 1999, and for each fis24 cal year thereafter, until such time as the aggregate

25 of the amounts deposited is $290,722,958, the Sec-
18

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1 retary of the Treasury shall deposit into the Fund, to

2 be credited to the Cheyenne River Sioux Tribal Recov3 ery Account, an amount equal to 10 percent of the re4 ceipts from the deposits to the Treasury of the United

5 States for the preceding fiscal year from the Program.

6 (2) PERCENTAGE AMOUNT.—Beginning with fis7 cal year 2004, if no other law provides for the com8 pensation to parties in conjunction with an applica9 ble plan for the Program, the Secretary of the Treas10 ury shall deposit into the Fund an amount equal to

11 25 percent of the receipts from the deposits to the

12 Treasury of the United States for the preceding fiscal

13 year from the Program, until such time as the aggre14 gate of the amounts deposited into the Fund from

15 such receipts and receipts deposited under paragraph

16 (1) equals the amount specified in paragraph (1).

17 (3) ADDITIONAL INTEREST.—If, by the date that

18 is 60 days after the end of a fiscal year, the Secretary

19 of the Treasury fails to deposit into the Fund an

20 amount determined under paragraph (1) or (2), the

21 Secretary of the Treasury shall deposit, in addition to

22 the applicable amount required to be deposited under

23 paragraph (1) or (2), interest on the amount required

24 to be deposited, determined for the period beginning

25 on the day after the termination of that 60-day pe-
19

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1 riod and ending on the date on which the amount de2 termined under paragraph (1) or (2) is deposited,

3 and based on a rate of interest that is commonly re4 ferred to as the Treasury overnight rate.

5 (c) PAYMENT OF INTEREST TO TRIBE.—

6 (1) IN GENERAL.—In accordance with this Act,

7 the Secretary, acting through the Office, and in a

8 manner consistent with the first section of the Act of

9 June 24, 1938 (52 Stat. 1037 et seq., chapter 648; 25

10 U.S.C. 162a) and upon request of the Tribe, shall

11 make payments to the Tribe from the interest credited

12 to the interest component of the account, beginning at

13 the end of the first fiscal year during which interest

14 is credited to the account.

15 (2) USE OF PAYMENTS.—The Tribe shall use the

16 payments made under this subsection only for carry17 ing out projects and programs pursuant to the plan

18 prepared under subsection (d).

19 (3) TRIBAL RESOLUTION.—Each request made

20 by the Tribe under paragraph (1) to withdraw funds

21 shall be accompanied by a resolution from the Tribal

22 Council authorizing the withdrawal of funds in a

23 manner that complies with the terms of this Act.

24 (d) PLAN.—
20

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1 (1) IN GENERAL.—The Tribal Council shall, not

2 later than 18 months after the date of enactment of

3 this Act, prepare a plan for the use of the payments

4 made to the Tribe under subsection (c).

5 (2) CONTENTS OF PLAN.—The plan developed

6 under this subsection shall provide for the manner in

7 which the Tribe will expend the payments referred to

8 in paragraph (1) to promote—

9 (A) economic development;

10 (B) infrastructure development;

11 (C) the educational, health, recreational,

12 and social welfare objectives of the Tribe and its

13 members; or

14 (D) any combination of the activities re15 ferred to in subparagraphs (A) through (C).

16 (3) PLAN REVIEW AND REVISION.—The Tribal

17 Council shall make available for review and comment

18 by the members of the Tribe a copy of the plan before

19 the plan becomes final, in accordance with procedures

20 established by the Tribal Council. The Tribal Council

21 may, on an annual basis, update the plan by revising

22 the plan in a manner that provides the members of

23 the Tribe to review and comment on any proposed re24 vision. In preparing the Plan and any revisions to

25 update the Plan, the Tribal Council shall consult with
21

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1 the Secretary of the Interior and the Secretary of

2 Health and Human Services.

3 (4) AUDIT.—

4 (A) IN GENERAL.—The activities of the

5 Tribe in carrying out the plan under this sub6 section shall be audited as part of the annual

7 single-agency audit the Tribe is required to pre8 pare pursuant to the Office of Management and

9 Budget circular numbered A–133.

10 (B) WRITTEN FINDINGS.—The auditors that

11 conduct the audit shall include in the written

12 findings of that audit a determination whether

13 the funds received by the Tribe under this section

14 were expended in a manner consistent with this

15 section to carry out the plan under this sub16 section. A copy of the written findings of the

17 audit shall be inserted in the published minutes

18 of the Tribal Council proceedings for the session

19 at which the audit is presented to the Tribal

20 Council.

21 (e) PROHIBITION ON PER CAPITA PAYMENTS.—No

22 portion of any payment made under this section may be

23 distributed to any member of the Tribe on a per capita

24 basis.

25 (f) PLEDGE OF FUTURE INTEREST INCOME.—
22

•S 1905 RS

1 (1) IN GENERAL.—Subject to paragraph (2), the

2 Tribe may enter into an agreement under which the

3 Tribe pledges future interest from the account as secu4 rity for a loan or other financial transaction.

5 (2) LIMITATIONS.—The Tribe—

6 (A) may enter into an agreement under

7 paragraph (1) only in connection with the pur8 chase of land or other capital assets; and

9 (B) may not pledge, for any year under an

10 agreement referred to in paragraph (1), an

11 amount greater than 40 percent of the income

12 from interest from the account.

13 SEC. 5. ELIGIBILITY OF TRIBE FOR CERTAIN PROGRAMS

14 AND SERVICES.

15 (a) IN GENERAL.—No payment made to the Tribe pur16 suant to this Act shall result in the reduction or denial of

17 any service or program to which, pursuant to Federal

18 law—

19 (1) the Tribe is otherwise entitled because of the

20 status of the Tribe as a federally recognized Indian

21 tribe; or

22 (2) any individual who is a member of the Tribe

23 is entitled because of the status of the individual as

24 a member of the Tribe.
23

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1 (b) EXEMPTIONS FROM TAXATION.—No payment

2 made pursuant to this Act shall be subject to any Federal

3 or State income tax.

4 (c) POWER RATES.—No payment made pursuant to

5 this Act shall affect Pick-Sloan Missouri River Basin power

6 rates.

7 SEC. 6. SALE OF WESTERN AREA POWER AUTHORITY.

8 (a) IN GENERAL.—If, before the amount specified in

9 section 4(b)(1) is deposited into the Fund, the United States

10 sells or otherwise transfers title to the assets and income

11 of the Western Area Power Authority to an entity other

12 than the United States—

13 (1) an amount of the proceeds from that sale

14 equal to the difference between the amount specified

15 in section 4(b)(1) and the aggregate amount that, as

16 of the sale of power authority, had been paid into the

17 Fund, shall be deposited in the Fund; or

18 (2) the purchaser may assume responsibility for

19 making payments to the Treasury of the United

20 States for deposit in the Fund in amounts determined

21 under section 4(b)(1).

22 (b) SECURITY.—If a purchaser assumes the respon23 sibility for making the payments described in subsection

24 (a)(2), the purchaser shall provide the Tribe with appro25 priate security to secure those payments.