II 

117TH CONGRESS 

1ST SESSION S. 3242 

To provide for the settlement of claims relating to the Shab-eh-nay Band 

Reservation in Illinois, and for other purposes. 

IN THE SENATE OF THE UNITED STATES 

NOVEMBER 18, 2021 

Mr. MORAN introduced the following bill; which was read twice and referred 

to the Committee on Indian Affairs 

A BILL 

To provide for the settlement of claims relating to the Shabeh-nay Band Reservation in Illinois, 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 ‘‘Prairie Band Pota5 watomi Nation Shab-eh-nay Band Reservation Settlement 

6 Act of 2021’’. 

7 SEC. 2. FINDINGS; PURPOSES. 

8 (a) FINDINGS.—Congress finds that— 

9 (1) pursuant to the Treaty of July 29, 1829, 

10 made and concluded at Prairie du Chien (7 Stat. 


kjohnson on DSK79L0C42PROD with BILLS
2 

•S 3242 IS

1 320) (commonly known as the ‘‘Second Treaty of 

2 Prairie du Chien’’), the Potawatomi and other af3 fected Indian Tribes ceded certain land in northern 

4 Illinois, except for 2 parcels totaling 1,280 acres for 

5 Potawatomi Chief Shab-eh-nay and his Band at 

6 their village near Paw Paw Grove, Illinois; 

7 (2)(A) pursuant to the Treaty of September 26, 

8 1833, made at Chicago (7 Stat. 431) (commonly 

9 known as the ‘‘Treaty of Chicago’’), the Potawatomi 

10 and other Indians ceded approximately 5,000,000 

11 acres of land, including the Shab-eh-nay Band Res12 ervation; but 

13 (B) the Senate rejected the provision that ceded 

14 that reservation, with the effect of affirming the In15 dian-held title and boundaries of the Shab-eh-nay 

16 Band Reservation; 

17 (3)(A) in 1849, while Chief Shab-eh-nay was 

18 visiting his relatives in Kansas, the Commissioner of 

19 the General Land Office of the United States sold 

20 the Shab-eh-nay Band Reservation at public auction 

21 to non-Indians who erroneously believed that they 

22 had acquired good title to the land on which the 

23 Shab-eh-nay Band Reservation is located; and 


kjohnson on DSK79L0C42PROD with BILLS
3 

•S 3242 IS

1 (B) the Shab-eh-nay Band Reservation is ille2 gally occupied as of the date of enactment of this 

3 Act; 

4 (4) the Associate Solicitor of the Department of 

5 the Interior issued an opinion on July 24, 2000, 

6 that concluded that— 

7 (A) ‘‘the Shab-eh-nay Band Reservation 

8 continues to exist’’; 

9 (B) there is no evidence that Chief Shab10 eh-nay abandoned the Shab-eh-nay Band Res11 ervation; and 

12 (C) ‘‘even if it were true that Shab-eh13 nay’s Band had abandoned the land, the Band’s 

14 treaty recognized title to that land could not be 

15 extinguished without Congressional action’’; 

16 (5) the Solicitor of the Department of the Inte17 rior issued an opinion on January 18, 2001, that— 

18 (A) confirmed the findings of the Associate 

19 Solicitor of the Department of the Interior 

20 under paragraph (4); and 

21 (B) stated that— 

22 (i) the Shab-eh-nay Band held recog23 nized title to the Shab-eh-nay Band Res24 ervation; 


kjohnson on DSK79L0C42PROD with BILLS
4 

•S 3242 IS

1 (ii) Congress never authorized the 

2 conveyance of the Shab-eh-nay Band Res3 ervation; 

4 (iii) the Tribe is the lawful successor 

5 in interest to Chief Shab-eh-nay and his 

6 Band; and 

7 (iv) the Department of the Interior 

8 believes that the United States continues 

9 to bear a trust responsibility to the Tribe 

10 for the Shab-eh-nay Band Reservation; 

11 (6) Congress has never acted by treaty or stat12 ute to extinguish the recognized Indian title to the 

13 Shab-eh-nay Band Reservation; 

14 (7) the Tribe is the successor in interest to 

15 Chief Shab-eh-nay and his Band and the rightful 

16 owner and occupant of the Shab-eh-nay Band Res17 ervation; 

18 (8) the Federal Government, through the ac19 tions of the General Land Office, has deprived the 

20 Tribe of the right of exclusive use and occupancy of 

21 the Shab-eh-nay Band Reservation without legal au22 thorization or just compensation; 

23 (9) certain non-Indian individuals, entities, and 

24 local governments occupying land within the bound25 aries of the Shab-eh-nay Band Reservation as of the 


kjohnson on DSK79L0C42PROD with BILLS
5 

•S 3242 IS

1 date of enactment of this Act, including the State 

2 and the County— 

3 (A) acquired ownership interests to the 

4 land in good faith; and 

5 (B) should be able to possess clear title to 

6 the land; and 

7 (10) the United States has a moral and legal 

8 responsibility— 

9 (A) to help secure a fair and equitable set10 tlement of past inequities to the Tribe; and 

11 (B) to ensure protection of the ownership 

12 interests of non-Indian occupants of the Shab13 eh-nay Band Reservation. 

14 (b) PURPOSES.—The purposes of this Act are— 

15 (1) to acknowledge the unlawful sale by the 

16 Federal Government of the valuable right held by 

17 the Tribe to the exclusive use and occupancy of the 

18 Shab-eh-nay Band Reservation; 

19 (2) to reaffirm Federal recognition of the own20 ership by the Tribe of, and jurisdiction over, land 

21 that the Tribe owns within the Shab-eh-nay Band 

22 Reservation; 

23 (3) to promote the economic self-sufficiency of 

24 the Tribe and the members of the Tribe; 


kjohnson on DSK79L0C42PROD with BILLS
6 

•S 3242 IS

1 (4) to extinguish the Indian title to, and con2 firm the ownership by the State, the County, and 

3 certain individuals and entities of, certain land with4 in the boundaries of the Shab-eh-nay Band Reserva5 tion; 

6 (5) to provide stability and security to the State 

7 and residents of the State, the local governments 

8 and the areas over which the local governments exer9 cise jurisdiction, and businesses regarding the own10 ership and use by the Tribe of the Reaffirmed Res11 ervation; 

12 (6) to extinguish potential claims by the Tribe 

13 against the United States, the State, the local gov14 ernments, and private individuals and entities that 

15 could be a direct consequence of not reaching a set16 tlement with the Tribe; 

17 (7) to require the Secretary to preserve and 

18 protect, but not manage, the Reaffirmed Reservation 

19 in furtherance of trust responsibility of the Federal 

20 Government; and 

21 (8) to authorize the Secretary— 

22 (A) to execute the waiver and release of 

23 claims and compensate the Tribe; and 

24 (B) to take any other action necessary to 

25 carry out this Act. 


kjohnson on DSK79L0C42PROD with BILLS
7 

•S 3242 IS

1 SEC. 3. DEFINITIONS. 

2 In this Act: 

3 (1) COUNTY.—The term ‘‘County’’ means 

4 Dekalb County in the State. 

5 (2) LOCAL GOVERNMENT.—The term ‘‘local 

6 government’’ means any unit of local government ex7 ercising authority over land located within the Res8 ervation as of the date of enactment of this Act. 

9 (3) REAFFIRMED RESERVATION.—The term 

10 ‘‘Reaffirmed Reservation’’ means— 

11 (A) the land recognized as being under the 

12 ownership of the Tribe under section 4(a); and 

13 (B) any land located within the Replace14 ment Area that is acquired by the Tribe in re15 stricted fee status after the date of enactment 

16 of this Act. 

17 (4) REPLACEMENT AREA.—The term ‘‘Replace18 ment Area’’ means the aboriginal territory of the 

19 Tribe, located near Shabbona, Illinois, which is con20 tained within the area bounded— 

21 (A) on the north by Interstate 88; 

22 (B) on the west by Interstate 39; 

23 (C) on the south by State Route 30 and 

24 Preserve Road; and 

25 (D) on the east by South 4th Street and 

26 State Route 23. 


kjohnson on DSK79L0C42PROD with BILLS
8 

•S 3242 IS

1 (5) RESERVATION.—The term ‘‘Reservation’’ 

2 means the 1,280 acres of land in the State located 

in sec. 23, the W1⁄2 of sec. 25, and the E1 3 ⁄2 of sec. 

4 26 in T. 38 N., R. 3 E., Third Principal Meridian. 

5 (6) RESTRICTED FEE STATUS.—The term ‘‘re6 stricted fee status’’, with respect to land, means that 

7 the land— 

8 (A) is— 

9 (i) owned in fee by the Tribe by ab10 original title or conveyance; 

11 (ii) held by the Tribe subject to a re12 striction against alienation and taxation, 

13 and therefore may not be sold by the Tribe 

14 without the consent of Congress; and 

15 (iii) expressly subject to the jurisdic16 tion of the Tribe; and 

17 (B) is not subject to— 

18 (i) taxation by any State or local gov19 ernment other than the Tribe; or 

20 (ii) any provision of law governing 

21 land use that provides for the review or ap22 proval by the Secretary, directly or 

23 through agreement with another party, be24 fore the Tribe may use the land for any 

25 purpose. 


kjohnson on DSK79L0C42PROD with BILLS
9 

•S 3242 IS

1 (7) SECRETARY.—The term ‘‘Secretary’’ means 

2 the Secretary of the Interior. 

3 (8) STATE.—The term ‘‘State’’ means the State 

4 of Illinois. 

5 (9) TRIBE.—The term ‘‘Tribe’’ means the Prai6 rie Band Potawatomi Nation, a federally recognized 

7 Indian Tribe. 

8 SEC. 4. REAFFIRMATION OF SHAB-EH-NAY BAND RESERVA9 TION. 

10 (a) REAFFIRMATION OF TITLE.—Title to the 130 

11 acres of the Reservation owned in fee by the Tribe as of 

12 the date of enactment of this Act is recognized as being 

13 under the ownership of the Tribe. 

14 (b) RESTRICTED FEE STATUS.—The Reaffirmed 

15 Reservation— 

16 (1) shall be considered to be owned by the 

17 Tribe in restricted fee status; 

18 (2) is expressly subject to the jurisdiction of the 

19 Tribe; and 

20 (3) shall not be subject to— 

21 (A) taxation by any State or local govern22 ment other than the Tribe; or 

23 (B) any provision of law governing land 

24 use that provides for the review or approval by 

25 the Secretary, directly or through agreement 


kjohnson on DSK79L0C42PROD with BILLS
10 

•S 3242 IS

1 with another party, before the Tribe may use 

2 the land for any purpose. 

3 SEC. 5. EXTINGUISHMENT OF INDIAN TITLE; CONFIRMA4 TION OF LAND OWNERSHIP. 

5 (a) EXTINGUISHMENT OF INDIAN TITLE.—Title held 

6 by the Tribe to the Reservation (other than the Re7 affirmed Reservation) as of the date of enactment of this 

8 Act is extinguished. 

9 (b) CONFIRMATION OF LAND OWNERSHIP.—Each 

10 title to land and right-of-way within the Reservation held 

11 by the State, the local governments, or any individual or 

12 entity as of November 5, 1849, is recognized and con13 firmed. 

14 SEC. 6. WAIVER AND RELEASE OF CLAIMS. 

15 (a) CLAIMS AGAINST UNITED STATES, STATE, 

16 LOCAL GOVERNMENTS, AND OTHER PARTIES.—The 

17 Tribe and the Secretary shall execute appropriate docu18 ments providing for the relinquishment by the Tribe of 

19 all claims against— 

20 (1) the United States for a breach of trust re21 sponsibility associated with any sale of any portion 

22 of the Reservation; and 

23 (2) the State, the local governments, and any 

24 individuals or entities occupying the Reservation for 

25 any trespass and related damages in connection with 


kjohnson on DSK79L0C42PROD with BILLS
11 

•S 3242 IS

1 the occupation and use of the Reservation during 

2 the period beginning on November 5, 1849, and end3 ing on the effective date described in subsection (b). 

4 (b) EFFECTIVE DATE.—The relinquishment of 

5 claims under subsection (a) shall take effect on the later 

6 of— 

7 (1) the date on which the Tribe receives pay8 ment of all of the settlement funds under section 7; 

9 and 

10 (2) the date on which the Secretary publishes in 

11 the Federal Register a notice that the documents de12 scribed in subsection (a) have been executed by the 

13 Secretary and the Tribe. 

14 SEC. 7. SETTLEMENT FUNDS. 

15 (a) INITIAL PAYMENT.—Not later than 30 days after 

16 the date of enactment of this Act, the Secretary shall pay 

17 to the Tribe $10,000,000 in partial settlement of the 

18 claims of the Tribe, to be managed, invested, and used 

19 by the Tribe to promote economic development and land 

20 acquisition, as determined by the Tribe in accordance with 

21 the constitution and laws of the Tribe. 

22 (b) SUBSEQUENT PAYMENTS.— 

23 (1) ASSESSMENT.— 

24 (A) IN GENERAL.—Not later than 180 

25 days after the date of enactment of this Act, 


kjohnson on DSK79L0C42PROD with BILLS
12 

•S 3242 IS

1 the Secretary, in consultation with the Tribe, 

2 shall calculate an assessment of the total dam3 ages to the Tribe associated with the liability of 

4 the United States for the illegal sale of the Res5 ervation, including the current land value of all 

6 land located within the Reservation. 

7 (B) REPORT.—The Secretary shall submit 

8 to the Committees on Appropriations and In9 dian Affairs of the Senate and the Committees 

10 on Appropriations and Natural Resources of the 

11 House of Representatives a report describing 

12 the assessment calculated under subparagraph 

13 (A). 

14 (2) FINAL SETTLEMENT AGREEMENT.—The 

15 Secretary and the Tribe shall negotiate and execute 

16 a final settlement agreement in lieu of litigation to 

17 resolve the claims of the Tribe, in a form and man18 ner acceptable to the Attorney General, which shall 

19 include terms for the payment of the remaining set20 tlement funds to the Tribe, as calculated under 

21 paragraph (1)(A). 

22 (3) REQUIREMENT.—The Secretary shall pay to 

the Tribe 1 23 ⁄3 of the remaining settlement funds, as 

24 described in the final settlement agreement executed 

25 under paragraph (2), on each of— 


kjohnson on DSK79L0C42PROD with BILLS
13 

•S 3242 IS

1 (A) the date that is 3 years after the date 

2 of enactment of this Act; 

3 (B) the date that is 6 years after that date 

4 of enactment; and 

5 (C) the date that is 9 years after that date 

6 of enactment. 

7 SEC. 8. LAND ACQUISITION; TRIBAL AUTHORITY TO ENTER 

8 INTO AGREEMENTS; NO USE OF CONDEMNA9 TION OR EMINENT DOMAIN. 

10 (a) LAND ACQUISITION.— 

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

12 after the date of enactment of this Act, the Tribe 

13 may acquire from a willing seller in restricted fee 

14 status not more than a total of 1,151 acres of land 

15 within the Reservation or the Replacement Area 

16 using the settlement funds received by the Tribe 

17 under section 7 or other funds of the Tribe. 

18 (2) NOTICE.— 

19 (A) IN GENERAL.—Before acquiring land 

20 under paragraph (1), the Tribe shall give notice 

21 to the Secretary. 

22 (B) DEADLINE.—On the date that is 60 

23 days after receipt of the notice under subpara24 graph (A), the land shall automatically— 


kjohnson on DSK79L0C42PROD with BILLS
14 

•S 3242 IS

1 (i) convert to ownership by the Tribe 

2 in restricted fee status; and 

3 (ii) be considered to be part of the Re4 affirmed Reservation. 

5 (b) RECOGNITION OF TRIBAL GOVERNMENT AU6 THORITY TO ENTER INTO AGREEMENTS WITH STATE

7 AND LOCAL GOVERNMENTS.—The Tribe shall have the 

8 authority to enter into agreements with the State and any 

9 local government regarding the Reaffirmed Reservation 

10 and activities occurring on the Reaffirmed Reservation, in11 cluding agreements relating to jurisdiction, land use, and 

12 services. 

13 (c) NO USE OF CONDEMNATION OR EMINENT DO14 MAIN.—Land or interests in land— 

15 (1) may not be acquired by condemnation or 

16 eminent domain under this Act; but 

17 (2) shall be acquired by purchase by payment 

18 of fair market value. 

19 (d) CULTURAL AND HISTORIC PRESERVATION OF

20 RESERVATION.—Land owned by the State and the local 

21 governments located within the boundaries of the Reserva22 tion shall be managed to protect any human or cultural 

23 remains, consistent with applicable Federal and State law 

24 and subject to consultation with the Tribe. 


kjohnson on DSK79L0C42PROD with BILLS
15 

•S 3242 IS

1 SEC. 9. AUTHORIZATION OF APPROPRIATIONS. 

2 There is authorized to be appropriated to carry out 

3 this Act $10,000,000. 

Æ 


kjohnson on DSK79L0C42PROD with BILLS