I
103D CONGRESS
1ST SESSION
H. R. 2399
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.
IN THE HOUSE OF REPRESENTATIVES
JUNE 10, 1993
Mr. DERRICK introduced the following bill; which was referred jointly to the
Committees on Natural Resources and Ways and Means
A BILL
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.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ‘‘Catawba Indian Tribe
of South Carolina Land Claims Settlement Act of 1993’’.
SEC. 2. DECLARATION OF POLICY, CONGRESSIONAL FIND-
INGS AND PURPOSE.
(a) FINDINGS.—The Congress declares and finds
that:
(1) It is the policy of the United States to pro-
mote tribal self-determination and economic self-suf-
ficiency and to support the resolution of disputes
over historical claims through settlements mutually
agreed to by Indian and non-Indian parties.
(2) There is pending before the United States
District Court for the District of South Carolina a
lawsuit 
disputing 
ownership 
of 
approximately
140,000 acres of land in the State of South Carolina
and other rights of the Catawba Indian Tribe under
Federal law.
(3) The Catawba Indian Tribe has also initiated
a related lawsuit against the United States in the
United States Court of Federal Claims seeking mon-
etary damages.
(4) Some of the significant historical events
which have led to the present situation include:
(A) In treaties with the Crown in 1760
and 1763, the Tribe ceded vast portions of its
aboriginal territory in the present States of
North and South Carolina in return for guaran-
tees of being quietly settled on a 144,000-acre
reservation.
(B) The Tribe’s district court suit con-
tended that in 1840 the Tribe and the State en-
tered into an agreement without Federal ap-
proval or participation whereby the Tribe ceded
its treaty reservation to the State, thereby giv-
ing rise to the Tribe’s claim that it was dispos-
sessed of its lands in violation of Federal law.
(C) In 1943, the United States entered
into an agreement with the Tribe and the State
to provide services to the Tribe and its mem-
bers. The State purchased 3,434 acres of land
and conveyed it to the Secretary in trust for the
Tribe and the Tribe organized under the Indian
Reorganization Act.
(D) In 1959, Congress enacted the Ca-
tawba Tribe of South Carolina Division of As-
sets Act, 25 U.S.C. 931–938. Federal agents
assured the Tribe that if the Tribe would re-
lease the Government from its obligation under
the 1943 agreement and agree to Federal legis-
lation terminating the Federal trust relation-
ship and liquidating the 1943 reservation, the
status of the Tribe’s land claim would not be
jeopardized by termination.
(E) In 1980, the Tribe initiated Federal
court litigation to regain possession of its treaty
lands and in 1986, the United States Supreme
Court ruled in South Carolina against Catawba
Indian Tribe that the 1959 Act resulted in the
application of State statutes of limitations to
the Tribe’s land claim. Two subsequent deci-
sions of the United States Court of Appeals for
the Fourth Circuit have held that some portion
of the Tribe’s claim is bared by State statutes
of limitations and that some portion is not
barred.
(5) The pendency of these lawsuits has led to
substantial economic and social hardship for a large
number of landowners, citizens and communities in
the State of South Carolina, including the Catawba
Indian Tribe. Congress recognizes that if these
claims are not resolved, further litigation against
tens of thousands of landowners would be likely;
that any final resolution of pending disputes through
a process of litigation would take many years and
entail great expenses to all parties; continue eco-
nomically and socially damaging controversies; pro-
long uncertainty as to the ownership of property;
and seriously impair long-term economic planning
and development for all parties.
(6) The 102d Congress has enacted legislation
suspending until October 1, 1993, the running of
any unexpired statute of limitation applicable to the
Tribe’s land claim in order to provide additional
time to negotiate settlement of these claims.
(7) It is recognized that both Indian and non-
Indian parties enter into this settlement to resolve
the disputes raised in these lawsuits and to derive
certain benefits. The parties’ Settlement Agreement
constitutes a good faith effort to resolve these law-
suits and other claims and requires implementing
legislation by the Congress of the United States, the
General Assembly of the State of South Carolina,
and the governing bodies of the South Carolina
counties of York and Lancaster.
(8) To advance the goals of the Federal policy
of Indian self-determination and restoration of ter-
minated Indian tribes, and in recognition of the
United States obligation to the Tribe and the Fed-
eral policy of settling historical Indian claims
through comprehensive settlement agreements, it is
appropriate that the United State participate in the
funding and implementation of the Settlement
Agreement.
(b) PURPOSE.—It is the purpose of this Act—
(1) to approve, ratify, and confirm the Settle-
ment Agreement entered into by the non-Indian set-
tlement parties and the Tribe;
(2) to authorize and direct the Secretary to im-
plement the terms of such Settlement Agreement;
(3) to authorize the actions and appropriations
necessary to implement the provisions of the Settle-
ment Agreement and this Act;
(4) to remove the cloud on titles in the State
of South Carolina resulting from the Tribe’s land
claim; and
(5) to restore the trust relationship between the
Tribe and the United States.
SEC. 3. DEFINITIONS.
For purposes of this Act:
(1) The term ‘‘Tribe’’ means the Catawba In-
dian Tribe of South Carolina as constituted in ab-
original times, which was party to the Treaty of
Pine Tree Hill in 1760 as confirmed by the Treaty
of Augusta in 1763, which was party also to the
Treaty of Nation Ford in 1840, and which was the
subject of the Termination Act, and all predecessors
and successors in interest, including the Catawba In-
dian Tribe of South Carolina, Inc.
(2) The term ‘‘claim’’ or ‘‘claims’’ means any
claim which was asserted by the Tribe in either Suit,
and any other claim which could have been asserted
by the Tribe or any Catawba Indian of a right, title
or interest in property, to trespass or property dam-
ages, or of hunting, fishing or other rights to natu-
ral resources, if such claim is based upon aboriginal
title, recognized title, or title by grant, patent, or
treaty including the Treaty of Pine Tree Hill of
1760, the Treaty of Augusta of 1763, or the Treaty
of Nation Ford of 1840.
(3) The term ‘‘Executive Committee’’ means
the body of the Tribe composed of the Tribe’s execu-
tive officers as selected by the Tribe in accordance
with its constitution.
(4) The term ‘‘Existing Reservation’’ means
that tract of approximately 630 acres conveyed to
the State in trust for the Tribe by J.M. Doby on
December 24, 1842, by deed recorded in York Coun-
ty Deed Book N, pp. 340–341.
(5) The term ‘‘General Council’’ means the
membership of the Tribe convened as the Tribe’s
governing body for the purpose of conducting tribal
business pursuant to the Tribe’s constitution.
(6) The terms ‘‘internal matters’’ or ‘‘internal
tribal matters’’ mean matters which include (but are
not limited to) the relationship between the Tribe
and one or more of its Members, the conduct of trib-
al government over Members, and the Tribe’s exer-
cise of the power to exclude individuals from the
Reservation.
(7) The term ‘‘Member’’ means individuals who
are members of the Tribe as determined in accord-
ance with this Act.
(8) The term ‘‘Reservation’’ or ‘‘Expanded Res-
ervation’’ means the Existing Reservation and the
lands added to the Existing Reservation in accord-
ance with section 14 of this Act, which are to be
held in trust by the Secretary in accordance with
this Act.
(9) The term ‘‘Secretary’’ means the Secretary
of the Interior.
(10) The term ‘‘Settlement Agreement’’ means
the document entitled ‘‘Agreement in Principle ’’ be-
tween the Tribe and the State of South Carolina and
attached to the copy of the State implementing legis-
lation and filed with the Secretary of State of the
State of South Carolina.
(11) The term ‘‘State’’ means, except for sec-
tions 6(a) through (f) and subsections (d)(2) and (h)
of section 18 of this Act, the State of South Caro-
lina.
(12) The term ‘‘Suit’’ or ‘‘Suits’’ means Ca-
tawba Indian Tribe of South Carolina v. State of
South Carolina, et al., docketed as Civil Action No.
80–2050 and filed in the United States District
Court for the District of South Carolina; and Ca-
tawba Indian Tribe of South Carolina v. The United
States of America, docketed as Civil Action No. 90–
553L and filed in the United States Court of Fed-
eral Claims.
(13) The term ‘‘Termination Act’’ means the
Act entitled ‘‘An Act to provide for the division of
the tribal assets of the Catawba Indian Tribe of
South Carolina among the members of the tribe and
for other purposes’’, approved September 21, 1959
(73 Stat. 592; 25 U.S.C. 931–938).
(14) The term ‘‘transfer’’ includes (but is not
limited to) any voluntary or involuntary sale, grant,
lease, allotment, partition, or other conveyance; any
transaction the purpose of which was to effect a
sale, grant, lease, allotment, partition, or convey-
ance; and any act, event or circumstance that re-
sulted in a change in title to, possession of, domin-
ion over, or control of land, water, minerals, timber,
or other natural resources.
(15) The term ‘‘Trust Funds’’ means the trust
funds established by section 13 of this Act.
SEC. 4. RESTORATION OF FEDERAL TRUST RELATIONSHIP.
(a) RESTORATION OF THE FEDERAL TRUST RELA-
TIONSHIP.—On the effective date of this Act, the trust re-
lationship between the Tribe and the United States shall
be restored.
(b) ELIGIBILITY
FOR
FEDERAL
BENEFITS
AND
SERVICES.—Notwithstanding any other provision of law,
on the same date as the trust relationship is restored, the
Tribe and the Members shall be eligible for all benefits
and services furnished to federally recognized Indian
tribes and their members because of their status as Indi-
ans. On the effective date of this Act, the Secretary shall
enter the Tribe on the list of federally recognized bands
and tribes maintained by the Department of the Interior;
and its members shall be entitled to special services, edu-
cational benefits, medical care, and welfare assistance pro-
vided by the United States to Indians because of their sta-
tus as Indians, and the Tribe shall be entitled to the spe-
ing legislation. The jurisdiction and governmental powers
of the Tribe shall be solely those set forth in this Act and
the State implementing legislation.
(g) IMPACT AID.—For purposes of the Act of Sep-
tember 30, 1950 (Public Law 874, 81st Congress; 20
U.S.C. 236 et seq.), if any property within the school dis-
trict of any local educational agency is occupied by any
part of the Expanded Reservation, such local educational
agency shall be considered to have fulfilled the require-
ments of section 2 of such Act and shall be eligible for
payments under section 3 of such Act.
SEC. 5. SETTLEMENT FUNDS.
(a) AUTHORIZATION FOR APPROPRIATION.—There is
hereby authorized to be appropriated $32,000,000 for the
Federal share which shall be deposited in the trust funds
established pursuant to section 13 of this Act or paid pur-
suant to section 6(g).
(b) DISBURSEMENT IN ACCORDANCE WITH SETTLE-
MENT AGREEMENT.—The Federal Funds appropriated
pursuant to this Act shall be disbursed in five equal an-
nual installments of $6,400,000 beginning in the fiscal
year following enactment of this Act. Funds transferred
to the Secretary from other sources shall be deposited in
the trust funds established pursuant to section 13 of this
Act or paid pursuant to section 6(g) within 30 days of
receipt by the Secretary.
(c) PRIVATE FUNDS.—Any private payments made to
settle the claims may be treated, at the election of the
taxpayer, as either a payment in settlement of litigation
or a charitable contribution for Federal income tax pur-
poses.
(d) FEDERAL, STATE, LOCAL AND PRIVATE CON-
TRIBUTIONS HELD IN TRUST BY SECRETARY.—The Sec-
retary shall, on behalf of the Tribe, collect those contribu-
tions toward settlement appropriated or received by the
State pursuant to section 5.2 of the Settlement Agreement
and shall either hold such funds totalling $18,000,000, to-
gether with the Federal funds appropriated pursuant to
this Act, in trust for the Tribe pursuant to the provisions
of section 13 of this Act or pay such funds pursuant to
section 6(g) of this Act.
SEC. 6. RATIFICATION OF PRIOR TRANSFERS; EXTINGUISH-
MENT OF ABORIGINAL TITLE, RIGHTS AND
CLAIMS.
(a) RATIFICATION OF TRANSFERS.—Any transfer of
land or natural resources located anywhere within the
United States from, by, or on behalf of the Tribe, any
one or more of its Members, or anyone purporting to be
a Member, including but without limitation any transfer
pursuant to any treaty, compact, or statute of any State,
shall be deemed to have been made in accordance with
the Constitution and all laws of the United States, and
Congress hereby does approve and ratify any such transfer
effective as of the date of said transfer. Nothing in this
section shall be construed to affect or eliminate the per-
sonal claim of any individual Member (except for any Fed-
eral common law fraud claim) which is pursued under any
law of general applicability that protects non-Indians as
well as Indians.
(b) ABORIGINAL TITLE.—To the extent that any
transfer of land or natural resources described in sub-
section (a) of this section may involve land or natural re-
sources to which the Tribe, any of its Members, or anyone
purporting to be a Member, or any other Indian, Indian
nation, or tribe or band of Indians had aboriginal title,
subsection (a) of this section shall be regarded as an extin-
guishment of aboriginal title as of the date of such trans-
fer.
(c) EXTINGUISHMENT OF CLAIMS.—By virtue of the
approval and ratification of any transfer of land or natural
resources effected by this section, or the extinguishment
of aboriginal title effected thereby, all claims against the
United States, any State or subdivision thereof, or any
other person or entity, by the Tribe, any of its Members,
or anyone purporting to be a Member, or any predecessors
or successors in interest thereof or any other Indian, In-
dian Nation, or tribe or band of Indians, arising at the
time of or subsequent to the transfer and based on any
interest in or right involving such land or natural re-
sources, including without limitation claims for trespass
damages or claims for use and occupancy, shall be deemed
extinguished as of the date of the transfer.
(d) EXTINGUISHMENT OF TITLE.—(1) All claims and
all right, title, and interest that the Tribe, its Members,
or any person or group of persons purporting to be Ca-
tawba Indians may have to aboriginal title, recognized
title, or title by grant, patent, or treaty to the lands lo-
cated anywhere in the United States are hereby extin-
guished.
(2) This extinguishment of claims shall also extin-
guish title to any hunting, fishing, or water rights or
rights to any other natural resource claimed by the Tribe
or a Member based on aboriginal or treaty recognized title,
and all trespass damages and other damages associated
with use, occupancy or possession, or entry upon such
lands.
(e) BAR TO FUTURE CLAIMS.—The United States is
hereby barred from asserting by or on behalf of the Tribe
or any of its Members, or anyone purporting to be a Mem-
ber, any claim arising before the date of enactment of this
Act from the transfer of any land or natural resources
by deed or other grant, or by treaty, compact, or act of
law, on the grounds that such transfer was not made in
accordance with the laws of South Carolina or the Con-
stitution or laws of the United States.
(f) NO DEROGATION OF FEE SIMPLE IN EXISTING
RESERVATION.—Nothing in this section shall be con-
strued to diminish or derogate from the fee simple estate
in the Existing Reservation or fee simple owned by mem-
bers.
(g) COSTS AND ATTORNEYS’ FEES.—The parties to
the Suits shall bear their own costs and attorneys’ fees
except that the Secretary shall approve and pay to the
Tribe’s attorneys in the Suits reasonable attorneys’ fees
and expenses not to exceed 10 percent of the $50,000,000
obligated for payment to the Tribe by Federal, State,
local, and private parties pursuant to section 5 of the Set-
tlement Agreement.
(h) PERSONAL CLAIMS NOT AFFECTED.—Nothing in
this section shall be deemed to affect, diminish, or elimi-
nate the personal claim of any individual Indian which is
pursued under any law of general applicability (other than
Federal common law fraud) that protects non-Indians as
well as Indians.
SEC. 7. TRIBAL MEMBERSHIP.
(a) MEMBERSHIP CRITERIA.—A person shall be con-
sidered a member of the Tribe and his or her name shall
be carried on the membership roll if the person is living
on the date of enactment of this Act and—
(1) his or her name was listed on the member-
ship roll published by the Secretary in the Federal
Register on February 25, 1961 (26 Federal Register
1680–1688, ‘‘Notice of Final Membership Roll’’),
and he or she is not excluded under the provisions
of subsection (b); or
(2) The Executive Committee determines, based
on the criteria used to compile the roll referred to
in paragraph (1), that his or her name should have
been included on the membership roll at that time,
but was not; or
(3) he or she is a lineal descendant of a Mem-
ber whose name appeared or should have appeared
on the membership roll referred to in paragraph (1).
(b) REVISION OF MEMBERSHIP ROLL.—The Tribe
shall revise and update its membership roll to include
those persons eligible for membership under subsection (a)
and excluding any persons found to have been erroneously
listed.
Executive Committee shall review such appeals and render
a decision, subject to the Secretary’s approval. If the Ex-
ecutive Committee and the Secretary disagree, the Sec-
retary’s decision will be final. All such appeals shall be
resolved within 90 days following publication of the pro-
posed roll. The final membership roll of the Tribe shall
then be published in the Federal Register and shall be
final for purposes of the distribution of funds from the
Per Capita Trust Fund.
(e) FUTURE MEMBERSHIP
IN
THE TRIBE.—The
Tribe shall have the right to determine future membership
in the Tribe; however, in no event may an individual be
added to the final membership roll which is compiled in
accordance with subsection (d) unless an individual is a
lineal descendant of a person on such final membership
roll.
SEC. 8. TRANSITIONAL AND PROVISIONAL GOVERNMENT.
(a) FUTURE
TRIBAL
GOVERNMENT.—The Tribe
shall adopt a new constitution within 24 months after en-
actment of this Act.
(b) EXECUTIVE
COMMITTEE
AS
TRANSITIONAL
BODY.—(1) Until the Tribe has adopted a constitution,
the existing tribal constitution shall remain in effect and
the Executive Committee is recognized as the provisional
and transitional governing body of the Tribe. For a period
not to exceed 24 months from the date of enactment of
this Act, the Executive Committee shall—
(A) represent the Tribe and its Members in the
implementation of this Act; and
(B) during such period—
(i) have full authority to enter into con-
tracts, grant agreements and other arrange-
ments with any Federal department or agency;
and
(ii) have full authority to administer or op-
erate any program under such contracts or
agreements.
(2) Until the initial election of tribal officers under
a new constitution and by-laws, the Executive Committee
shall—
(A) determine tribal membership in accordance
with the provisions of section 7; and
(B) oversee and implement the revision and
proposal to the Tribe of a new constitution and con-
duct such tribal meetings and elections as required
by this Act.
SEC. 9. TRIBAL CONSTITUTION AND GOVERNANCE.
(a) INDIAN REORGANIZATION ACT.—If the Tribe so
elects, it may organize under the Act of June 18, 1934
(25 U.S.C. 461 et seq.; commonly referred to as the ‘‘In-
dian Reorganization Act’’). The Tribe shall be subject to
such Act except to the extent such sections are inconsist-
ent with this Act.
(b) ADOPTION OF NEW TRIBAL CONSTITUTION.—
Within 180 days after the enactment of this Act, the Exec-
utive Committee shall draft and distribute to each Member
eligible to vote under the Tribal constitution in effect on
the date of enactment of this Act, a proposed constitution
and bylaws for the Tribe together with a brief, impartial
description of the proposed constitution and bylaws and
a notice of the date, time and location of the election under
this subsection. Not sooner than 30 days or later than 90
days after the distribution of the proposed constitution,
the Executive Committee shall conduct a secret-ballot elec-
tion to adopt a new constitution and bylaws.
(c) MAJORITY VOTE FOR ADOPTION; PROCEDURE IN
EVENT OF FAILURE TO ADOPT PROPOSED CONSTITU-
TION.—(1) The tribal constitution and bylaws shall be
ratified and adopted if—
(A) not less than 30 percent of those entitled
to vote do vote; and
(B) approved by a majority of those actually
voting.
(2) If in any such election such majority does not ap-
prove the adoption of the proposed constitution and by-
laws, the Executive Committee shall prepare another pro-
posed constitution and bylaws and present it to the Tribe
in the same manner provided in this section for the first
constitution and bylaws. Such new proposed constitution
and bylaws shall be distributed to the eligible voters of
the Tribe no later than 180 days after the date of the
election in which the first proposed constitution and by-
laws failed of adoption. An election on the question of the
adoption of the new proposal of the Executive Committee
shall be conducted in the same manner provided in sub-
section (b) for the election on the first proposed constitu-
tion and bylaws.
(d) ELECTION OF TRIBAL OFFICERS.—Within 120
days after the Tribe ratifies and adopts a constitution and
bylaws, the Executive Committee shall conduct an election
by secret ballot for the purpose of electing tribal officials
as provided in the constitution and bylaws. Subsequent
elections shall be held in accordance with the Tribe’s con-
stitution and bylaws.
(e) EXTENSION OF TIME.—Any time periods pre-
scribed in subsections (b) and (c) may be altered by writ-
ten agreement between the Executive Committee and the
Secretary.
SEC. 10. JURISDICTION AND GOVERNANCE OF THE RES-
ERVATION.
(a) POWERS OF TRIBE.—(1) Regardless of whether
the Tribe elects to organize under the Act of June 18,
1934, under section 9(a), in any constitution adopted by
the Tribe, the Tribe may be authorized to exercise author-
ity as consistent with the Settlement Agreement and this
Act—
(A) to regulate the use and disposition of tribal
property;
(B) to define laws, petty crimes, and rules of
conduct applicable to Members while on the Reserva-
tion, supplementing but not supplanting the criminal
laws of the State;
(C) to regulate the conduct of businesses lo-
cated on the Reservation and individuals residing on
the Reservation;
(D) to levy taxes on Members and levy other
taxes as provided by this Act and by the Settlement
Agreement;
(E) to grant exemptions, abatements, or waiv-
ers from any tribal laws, tribal regulations, or tribal
taxes, except the Tribal Sales and Use Taxes, other-
wise applicable on the Reservation, including waivers
of the jurisdiction of any tribal court;
(F) to adopt its own form of government;
(G) to determine membership as provided by
this Act;
(H) to exclude non-members from its member-
ship rolls and from the Reservation, except for—
(i) any public roads traversing the Res-
ervation;
(ii) passage on and use of the Catawba
River;
(iii) public or private easements encumber-
ing the Reservation properly used by those with
authority to use such easements;
(iv) Federal, State and local governmental
officials and employees duly performing official
governmental functions on the Reservation; and
(v) any other access to the Reservation al-
lowed by Federal law; and
(I) to charter tribally-owned economic develop-
ment corporations and enterprises provided the cor-
porations or enterprises register with the Secretary
of State for South Carolina as a domestic or foreign
corporation when doing business off the Reservation.
(2) Except as otherwise provided in this Act and in
the Settlement Agreement, the Tribe shall exercise full au-
thority over internal matters.
(b) INDIAN CIVIL RIGHTS ACT.—The Tribe shall be
subject to titles II through VII of Public Law 90–284,
as amended (25 U.S.C. 1301 et seq.; commonly referred
to as the ‘‘Indian Civil Rights Act’’) which shall apply to
the Reservation, any tribal court, and anyone subject to
the jurisdiction of the Tribe.
SEC. 11. CRIMINAL JURISDICTION.
(a) CRIMINAL JURISDICTION GENERALLY.—Except
as provided in subsection (b), the State shall exercise ex-
clusive jurisdiction over all crimes under the statutory or
common law of the State of South Carolina.
(b) CRIMINAL JURISDICTION OF TRIBAL COURT.—
(1) Any constitution adopted by the Tribe may provide
for a tribal court with original and appellate criminal ju-
risdiction, subject to the following limitations:
(A) The territorial jurisdiction of the court shall
be limited to the Reservation.
(B) The jurisdiction of the court over persons
shall be limited to Members.
(C) The subject matter jurisdiction of the court
shall be limited to crimes within the jurisdiction of
the State’s Magistrates’ Courts and to any addi-
tional misdemeanors and petty offenses specified in
the ordinances or laws adopted by the Tribe.
(D) The fines and penalties for such mis-
demeanors and offenses shall not exceed the maxi-
mum fines and penalties that a State magistrate’s
court may impose.
(2) In all cases in which the tribal court has jurisdic-
tion over State law—
(A) its jurisdiction shall be concurrent with the
jurisdiction of the Magistrates’ Court of the State;
and
(B) defendants shall have the right to remove
such cases to the Magistrates’ Court or appeal their
convictions in tribal court cases to the General Ses-
sions Court, in the same manner that Magistrates’
Court’s decisions may be appealed, or in accordance
with such procedures as the South Carolina General
Assembly may provide.
(3) In cases where the tribal court is applying those
additional ordinances or laws adopted by the Tribe in ac-
cordance with this subsection, it shall have exclusive juris-
diction.
(c) PEACE OFFICERS.—For the purpose of enforcing
the Tribe’s powers under sections 10(a), 11, and 17 of
this Act, the Tribe may employ peace officers. The employ-
ment and authority of peace officers shall be in the man-
ner prescribed in the Settlement Agreement and the State
implementing legislation.
SEC. 12. CIVIL JURISDICTION OF TRIBAL COURT.
(a) JURISDICTION AS PRESCRIBED BY THIS ACT.—
(1) The Tribe may provide in its constitution for a Tribal
Court having civil jurisdiction which may extend up to,
but not exceed, the extent provided by this Act. The Tribe
may have a court of original jurisdiction, as well as an
appellate court.
(2)(A) With respect to actions on contracts, the Trib-
al Court may be vested with jurisdiction over the following:
(i) An action on a contract to which the Tribe
or a Member is a party, which expressly provides in
writing that the Tribal Court has concurrent or ex-
clusive jurisdiction.
(ii) An action on a contract between the Tribe
or a Member and other parties or agents thereof
who are physically present on the Reservation when
the contract is made, which is to be performed in
part on the Reservation so long as the contract does
not expressly exclude jurisdiction of the Tribal
Court.
(iii) An action on a contract to which the Tribe
or a member of the Tribe is a party where more
than 50 percent of the services to be rendered are
performed on the Reservation so long as the contract
does not expressly exclude jurisdiction of the Tribal
Court.
(B) For purposes of this paragraph, the delivery of
goods or the solicitation of business on the Reservation
shall not constitute part performance sufficient to confer
jurisdiction.
(3) With respect to actions in tort, the Tribal Court
may be vested with jurisdiction over the following:
(A) An action arising out of an intentional tort,
as defined by South Carolina law, committed on the
Reservation in which recovery is sought for bodily
injuries and/or damages to tangible property located
on the Reservation.
(B) An action arising out of negligent tortious
conduct occurring on the Reservation or conduct oc-
curring on the Reservation for which strict liability
may be imposed, excluding, however, accidents oc-
curring within the right-of-way limits of any high-
way, road, or other public easement owned or main-
tained by the State or any of its subdivisions, or by
the United States, which abuts or crosses the Res-
ervation. Any such action in tort involving a non-
member of the Tribe as defendant may be removed
to a State or Federal court of appropriate jurisdic-
tion if the amount in controversy exceeds the juris-
dictional limits then applicable to Magistrate’s
Courts in the State of South Carolina.
(4) The Tribal Court may be vested with exclusive
jurisdiction over internal matters of the Tribe.
(5) The Tribal Court may be vested with jurisdiction
over domestic relations where both spouses to the mar-
riage are Members and both reside on the Reservation or
last resided together on the Reservation before the separa-
tion leading to their divorce.
(6) The Tribal Court may be vested with jurisdiction
to enforce against any business located on the Reserva-
tion, and any Member or non-Member residing on the Res-
ervation, any tribal civil regulation regulating conduct on
the Reservation enacted pursuant to section 10(a) or 17
of this Act. Such persons or entities are charged with no-
tice of the Tribe’s regulations governing conduct on the
Reservation and are subject to the enforcement of such
regulations in the tribal court unless the Tribe has specifi-
cally exempted the entity or person from any or all regula-
tion and enforcement in tribal court.
(b) CONCURRENT JURISDICTION.—(1) The original
jurisdiction of the Tribal Court over matters set forth in
paragraphs (2) (if concurrent), (3), and (5) of subsection
(a) shall be concurrent with the jurisdiction of the Court
of Common Pleas of South Carolina, the Family Court,
and United States District Court for South Carolina
where permitted by title 28 of the United States Code.
(2) The original jurisdiction of the Tribal Court over
the matters set forth in paragraph (2)(A) of subsection
(a) shall be concurrent or exclusive depending upon the
agreement of the parties.
(3) The original jurisdiction of the Tribal Court over
matters set forth in paragraph (4) of subsection (a) shall
be exclusive.
(4) The original jurisdiction of the Tribal Court over
matters set forth in paragraph (6) of subsection (a) shall
be exclusive unless the Tribe has waived such exclusive
jurisdiction as to any person or entity.
(5) As to all paragraphs in subsection (a) referred
to in this subsection, jurisdiction over appeals, if any, is
governed by subsection (d).
(c) WAIVER
OF JURISDICTION.—The Tribe may
waive Tribal Court jurisdiction or the application of tribal
laws with respect to any person or firm residing, doing
business, or otherwise entering upon the Reservation or
contracting with the Tribe. Any Member may also waive
Tribal Court jurisdiction or specify in a written contract
the law of any appropriate jurisdiction to govern any com-
mercial transaction or the interpretation of a contract to
which the Member is a party.
(d) APPEALS TO STATE OR FEDERAL COURT.—(1)
All final judgments entered in actions tried in Tribal
Court shall be subject to an appeal to the Family Court,
the Court of Common Pleas, or the United States District
Court depending upon whether that court would have had
jurisdiction over the appealed matter had it been com-
menced in that court if—
(A) a party to the suit is not a member of the
Tribe;
(B) the amount in controversy or the cost of
complying with any equitable order or decree exceeds
the jurisdictional limits then applicable in the Mag-
istrate’s Court of South Carolina; and
(C) the subject matter of the suit does not fall
within the provisions of subsection (a)(2)(A)(i) if ju-
risdiction is exclusive, or subsection (a)(4) or (6).
(2) The Tribe may enlarge the right of appeal to in-
clude other subject matters and Members, subject to such
rules and procedures as the applicable court and relevant
State and Federal laws may provide.
(3) In any appeal under this subsection, the court,
as appropriate, may—
(A) enter judgment affirming the Tribal Court;
(B) dismiss the case for lack of jurisdiction of
the Tribal Court, but only in those cases where the
Tribal Court has first addressed the issue of its ju-
risdiction;
(C) reverse or remand the case for retrial or re-
consideration in Tribal Court; or
(D) grant a trial de novo in its court.
(4) In any appeal, trial, or trial de novo pursuant
to this subsection, the reviewing court shall apply any reg-
ulation enacted pursuant to tribal authority.
(e) FULL FAITH AND CREDIT.—(1) In cases subject
to the provisions of subsection (a)(3) or (d), all final judg-
ments of the Tribal Court shall be given full faith and
credit in the State or Federal court with appropriate juris-
diction, and the Tribal Court shall give full faith and cred-
it to final judgments of the State and Federal courts.
(2) If a Member seeks to enforce against a non-Mem-
ber in Federal court a final judgment of the Tribal Court
in a case not subject to the provisions of subsection (a)(3)
or (d), the judgment shall be reviewed by the Federal
court in the manner provided in title 9, United States
Code.
(f) SOVEREIGN IMMUNITY.—(1) The Tribe may sue,
or be sued, in any court of competent jurisdiction; except,
however, that the Tribe shall enjoy sovereign immunity,
including damage limits and except as provided in this
subsection, immunity from seizure, execution, or encum-
brance of properties, to the same extent as the political
subdivisions of the State as provided in the South Carolina
Tort Claims Act (Section 15–78–10, et seq., S.C. Code
Annotated, 1976 as amended), and amendments of gen-
eral applicability thereto adopted after the date of enact-
ment of this Act. With respect to non-consumer liability
based on contract, however, the Tribe may, in a written
contract, provide that it is immune from suit on that con-
tract as if there had been no waiver of sovereign immunity.
(2) Notwithstanding the provisions of this section,
the Tribe shall be subject to suit as provided in section
17(a) of this Act.
(3) The nature and extent of this sovereign immunity
shall be construed consistent with the Settlement Agree-
ment and with applicable State and Federal law.
(4)(A) The Tribe shall procure and maintain liability
insurance with the same coverage and limits as required
of political subdivisions of the State.
(B) In the event that the Tribe’s insurance coverage
is inadequate or unavailable to satisfy a judgment within
the limits of the South Carolina Tort Claims Act, neither
the judgment nor any other process may be levied upon
the corpus or principal of the Tribal Trust Funds or upon
any property held in trust for the Tribe by the United
States; however, the Tribe or the Secretary shall honor
valid orders of a Federal or State court which enters
money judgments for causes of action against the Tribe
arising after the consummation of the Settlement Agree-
ment by making an assignment to the judgment creditor
of the right to receive income out of the next quarterly
payment or payments of income from the Tribal Trust
Funds.
(g) INDIAN CHILD WELFARE ACT.—(1) The Indian
Child Welfare Act of 1978 (25 U.S.C. 1901 et seq.) shall
apply to Catawba Indian children except as provided in
this section.
(2) Before the Tribe may assume jurisdiction over In-
dian child custody proceedings under the Indian Child
Welfare Act of 1978, the Tribe shall present to the Sec-
retary for approval a petition to assume such jurisdiction,
and the Secretary shall approve the petition in the manner
prescribed in such Act. Any petition to assume jurisdiction
over Indian child custody proceedings by the Tribe shall
be considered and determined by the Secretary in accord-
ance with the relevant provisions of such Act. The Sec-
retary’s determination that the Tribe may assume juris-
diction under such Act shall not affect any action or pro-
ceeding over which a court has assumed jurisdiction.
(3) Until the Tribe has assumed jurisdiction over In-
dian child custody proceedings, the State shall retain ex-
clusive jurisdiction over Indian custody proceedings; how-
ever, the State Court shall apply the Indian Child Welfare
Act of 1978 in such proceedings.
(4)(A) The Indian Child Welfare Act of 1978 shall
not apply to private adoptions of Indian children under
the jurisdiction of the Tribe under such Act where—
(i) both parents consent to the adoption; or
(ii) in the case of an unwed mother—
(I) where the mother consents to the adop-
tion when the father’s consent is not necessary
for the adoption under South Carolina Law
Section 20–7–1690 and any amendments there-
to, and
(II) the parents or mother help choose
adoptive parents, regardless of whether or not
the adoptive parents are outside the preferences
of the Indian Child Welfare Act of 1978.
(B) The court may consider any benefits, material
and cultural, the child may lose in determining whether
the proposed adoption is in the best interests of the child.
Failure of the courts to make this consideration shall not
be subsequently held to invalidate the adoption.
(5) In all cases of adoption, regardless of whether the
Indian Child Welfare Act of 1978 applies, section 107 of
such Act (25 U.S.C. 1917) shall apply.
(h) JURISDICTION OF STATE COURTS.—If no Tribal
Court is established by the Tribe, the State shall exercise
jurisdiction over all civil and criminal cases arising out of
acts and transactions occurring on the Reservation or in-
volving Members. If the Tribe establishes a Tribal Court,
the provisions of subsection (b) and section 11(b) shall
govern whether such jurisdiction is exclusive or concur-
rent.
SEC. 13. TRIBAL TRUST FUNDS.
(a) PURPOSES OF TRUST FUNDS.—All funds paid
pursuant to section 5 of this Act shall be deposited with
the Secretary in trust for the benefit of the Tribe. Sepa-
rate trust funds shall be established for the following pur-
poses: Economic Development, Land Acquisition, Edu-
cation, Social Services and Elderly Assistance, and Per-
Capita Payments. Except as provided in this section, the
Tribe, in consultation with the Secretary, shall determine
the share of settlement payments to be deposited in each
Trust Fund, and define, consistently with the provisions
of this section, the purposes of each Trust Fund and pro-
visions for administering each, specifically including provi-
sions for periodic distribution of current and accumulated
income, and for invasion and restoration of principal.
(b) OUTSIDE
MANAGEMENT
OPTION.—(1) The
Tribe, in consultation with and subject to the approval of
the Secretary, is authorized to place any of the Trust
Funds under professional management, outside the De-
partment of the Interior.
(2) If the Tribe elects to place any of the Trust
Funds under professional management outside the De-
partment of the Interior, it may engage a consulting or
advisory firm to assist in the selection of an independent
professional investment management firm, and it shall en-
gage, with the approval of the Secretary, an independent
investment management firm of proven competence and
experience established in the business of counseling large
endowments, trusts, or pension funds.
(3) The Secretary shall have 45 days to approve or
reject any independent investment management firm se-
lected by the Tribe. If the Secretary fails to approve or
reject the firm selected by the Tribe within 45 days, the
investment management firm selected by the Tribe shall
be deemed to have been approved by the Secretary.
(4) Secretarial approval of an investment manage-
ment firm shall not be unreasonably withheld, and any
Secretarial disapproval of an investment management firm
shall be accompanied by a detailed explanation setting
forth the Secretary’s reasons for such disapproval.
(5)(A) For funds placed under professional manage-
ment, the Tribe, in consultation with the Secretary and
its investment manager, shall develop—
(i) current operating and long-term capital
budgets; and
(ii) a plan for managing, investing, and distrib-
uting income and principal from the Trust Funds to
match the requirements of the Tribe’s operating and
capital budgets.
(B) For each Trust Fund which the Tribe elects to
place under outside professional management, the invest-
ment plan shall provide for investment of Trust Fund as-
sets so as to serve the purposes described in this section
and in the Trust Fund provisions which the Tribe shall
establish in consultation with the Secretary and the inde-
pendent investment management firm.
(C) Distributions from each Trust Fund shall not ex-
ceed the limits on the use of principal and income imposed
by the applicable provisions of this Act for that particular
Trust Fund.
(D)(i) The Tribe’s investment management plan shall
not become effective until approved by the Secretary.
(ii) Upon submission of the plan by the Tribe to the
Secretary for approval, the Secretary shall have 45 days
to approve or reject the plan. If the Secretary fails to ap-
prove or disapprove the plan within 45 days, the plan shall
be deemed to have been approved by the Secretary and
shall become effective immediately.
(iii) Secretarial approval of the plan shall not be un-
reasonably withheld and any secretarial rejection of the
plan shall be accompanied by a detailed explanation set-
ting forth the Secretary’s reasons for rejecting the plan.
(E) Until the selection of an established investment
management firm of proven competence and experience,
the Tribe shall rely on the management, investment, and
administration of the Trust Funds by the Secretary pursu-
ant to the provisions of this section.
(c) TRANSFER OF TRUST FUNDS; EXCULPATION OF
SECRETARY.—Upon the Secretary’s approval of the
Tribe’s investment management firm and an investment
management plan, all funds previously deposited in trust
funds held by the Secretary and all funds subsequently
paid into the trust funds, which are chosen for outside
management, shall be transferred to the accounts estab-
lished by an investment management firm in accordance
with the approved investment management plan. The Sec-
retary shall be exculpated by the Tribe from liability for
any loss of principal or interest resulting from investment
decisions made by the investment management firm. Any
Trust Fund transferred to an investment management
firm shall be returned to the Secretary upon written re-
quest of the Tribe, and the Secretary shall manage such
funds for the benefit of the Tribe.
(d) LAND ACQUISITION TRUST.—(1) The Secretary
shall establish and maintain a Catawba Land Acquisition
Trust Fund, and until the Tribe engages an outside firm
for investment management of this trust fund, the Sec-
retary shall manage, invest, and administer this trust
fund. The original principal amount of the Land Acquisi-
tion Trust Fund shall be determined by the Tribe in con-
sultation with the Secretary.
(2) The principal and income of the Land Acquisition
Trust Fund may be used for the purchase and develop-
ment of Reservation and non-Reservation land pursuant
to the Settlement Agreement, costs related to land acquisi-
tion, and costs of construction of infrastructure and devel-
opment of the Reservation and non-Reservation land.
(3)(A) Upon acquisition of the maximum amount of
land allowed for expansion of the Reservation, or upon re-
quest of the Tribe and approval of the Secretary pursuant
to the Secretarial approval provisions set forth in sub-
section (b)(5)(D) of this section, all or part of the balance
of this trust fund may be merged into one or more of the
Economic Development Trust Fund, the Education Trust
Fund, or the Social Services and Elderly Assistance Trust
Fund.
(B) Alternatively, at the Tribe’s election, the Land
Acquisition Trust Fund may remain in existence after all
the Reservation land is purchased in order to pay for the
purchase of non-Reservation land.
(4)(A) The Tribe may pledge or hypothecate the in-
come and principal of the Land Acquisition Trust Fund
to secure loans for the purchase of Reservation and non-
Reservation lands.
(B) Following enactment of this Act and before the
final annual disbursement is made as provided in section
5 of this Act, the Tribe may pledge or hypothecate up to
50 percent of the unpaid annual installments required to
be paid to this Trust Fund, the Economic Development
Trust Fund and the Social Services and Elderly Assist-
ance Trust Fund by section 5 of this Act and by section
5 of the Settlement Agreement, to secure loans to finance
the acquisition of Reservation or non-Reservation land or
infrastructure improvements on such lands.
(e) ECONOMIC DEVELOPMENT TRUST.—(1) The Sec-
retary shall establish and maintain a Catawba Economic
Development Trust Fund, and until the Tribe engages an
outside firm for investment management of this Trust
Fund, the Secretary shall manage, invest, and administer
this Trust Fund. The original principal amount of the
Economic Development Trust Fund shall be determined
by the Tribe in consultation with the Secretary. The prin-
cipal and income of this Trust Fund may be used to sup-
port tribal economic development activities, including but
not limited to infrastructure improvements and tribal
business ventures and commercial investments benefiting
the Tribe.
(2) The Tribe, in consultation with the Secretary,
may pledge or hypothecate future income and up to 50
percent of the principal of this Trust Fund to secure loans
for economic development. In defining the provisions for
administration of this Trust Fund, and before pledging
or hypothecating future income or principal, the Tribe and
the Secretary shall agree on rules and standards for the
invasion of principal and for repayment or restoration of
principal, which shall encourage preservation of principal,
and provide that, if feasible, a portion of all profits derived
from activities funded by principal be applied to repay-
ment of the Trust Fund.
(3) Following the enactment of this Act and before
the final annual disbursement is made as provided in sec-
tion 5 of this Act, the Tribe may pledge or hypothecate
up to 50 percent of the unpaid annual installments re-
quired to be paid by section 5 of this Act and by section
5 of the Settlement Agreement to secure loans to finance
economic development activities of the Tribe, including
(but not limited to) infrastructure improvements on Res-
ervation and non-Reservation lands.
(4) If the Tribe develops sound lending guidelines ap-
proved by the Secretary, a portion of the income from this
Trust Fund may also be used to fund a revolving credit
account for loans to support tribal businesses or business
enterprises of tribal members.
(f) EDUCATION TRUST.—The Secretary shall estab-
lish and maintain a Catawba Education Trust Fund, and
until the Tribe engages an outside firm for investment
management of this Trust Fund, the Secretary shall man-
age, invest, and administer this Trust Fund. The original
principal amount of this Trust Fund shall be determined
by the Tribe in consultation with the Secretary; subject
to the requirement that upon completion of all payments
into the Trust Funds, an amount equal to at least 1⁄3 of
all State, local, and private contributions made pursuant
to the Settlement Agreement shall have been paid into the
Education Trust Fund. Income from this Trust Fund
shall be distributed in a manner consistent with the terms
of the Settlement Agreement. The principal of this Trust
Fund shall not be invaded or transferred to any other
Trust Fund, nor shall it be pledged or encumbered as se-
curity.
(g) SOCIAL SERVICES AND ELDERLY ASSISTANCE
TRUST.—(1) The Secretary shall establish and maintain
a Catawba Social Services and Elderly Assistance Trust
Fund and, until the Tribe engages an outside firm for in-
vestment management of this Trust Fund, the Secretary
shall manage, invest, and administer the Social Services
and Elderly Assistance Trust Fund. The original principal
amount of this Trust Fund shall be determined by the
Tribe in consultation with the Secretary.
(2) The income of this Trust Fund shall be periodi-
cally distributed to the Tribe to support social services
programs, including (but not limited to) housing, care of
elderly, or physically or mentally disabled Members, child
care, supplemental health care, education, cultural preser-
vation, burial and cemetery maintenance, and operation
of tribal government.
(3) The Tribe, in consultation with the Secretary,
shall establish eligibility criteria and procedures to carry
out this subsection.
(h) PER CAPITA PAYMENT TRUST FUND.—(1) The
Secretary shall establish and maintain a Catawba Per
Capita Payment Trust Fund in an amount equal to 15
percent of the settlement funds paid pursuant to section
5 of the Settlement Agreement. Until the Tribe engages
an outside firm for investment management of this Trust
Fund, the Secretary shall manage, invest, and administer
the Catawba Per Capita Payment Trust Fund.
(2) Each person whose name appears on the final roll
of the Tribe published by the Secretary pursuant to sec-
tion 7(c) of this Act will receive a one-time, non-recurring
payment from this Trust Fund.
(3) The amount payable to each member shall be de-
termined by dividing the trust principal and any accrued
interest thereon by the number of members on the final
roll.
(4)(A) Subject to the provisions of this paragraph,
each enrolled member who has reached the age of 21 years
on the date the final roll is published shall receive the pay-
ment on the date of distribution, which shall be as soon
as practicable after date of publication of the final roll.
Adult Members shall be paid their pro rata share of this
Trust Fund on the date of distribution unless they elect
in writing to leave their pro rata share in the Trust Fund,
in which case such share shall not be distributed.
(B) The pro rata share of adult Members who elect
not to withdraw their payment from this Trust Fund shall
be managed, invested and administered, together with the
funds of Members who have not attained the age of 21
years on the date the final roll is published, until such
Member requests in writing that their pro rata share be
distributed, at which time such Member’s pro rata share
shall be paid, together with the net income of the Trust
Fund allocable to such Member’s share as of the date of
distribution.
(C) No member may elect to have their pro rata share
managed by this Trust Fund for a period of more than
21 years after the date of publication of the final roll.
(5)(A) Subject to the provisions of this paragraph,
the pro rata share of any Member who has not attained
the age of 21 years on the date the final roll is published
shall be managed, invested and administered pursuant to
the provisions of this section until such Member has at-
tained the age of 21 years, at which time such Member’s
pro rata share shall be paid, together with the net income
of the Trust Fund allocable to such Member’s share as
of the date of payment. Such Members shall be paid their
pro rata share of this Trust Fund on the date they attain
21 years of age unless they elect in writing to leave their
pro rata share in the Trust Fund, in which case such
share shall not be distributed.
(B) The pro rata share of such Members who elect
not to withdraw their payment from this trust fund shall
be managed, invested and administered, together with the
funds of members who have not attained the age of 21
years on the date the final roll is published, until such
Member requests in writing that their pro rata share be
distributed, at which time such Member’s pro rata share
shall be paid, together with the net income of the Trust
Fund allocable to such Member’s share as of the date of
distribution.
(C) No Member may elect to have their pro rata
share retained and managed by this Trust Fund beyond
the expiration of the period of 21 years after the date of
publication of the final roll.
(6) After payments have been made to all Members
entitled to receive payments, this Trust Fund shall termi-
nate, and any balance remaining in this Trust Fund shall
be merged into the Economic Development Trust Fund,
the Education Trust Fund, or the Social Services and El-
derly Assistance Trust Fund, as the Tribe may determine.
(i) DURATION OF TRUST FUNDS.—Subject to the
provisions of this section and with the exception of the
Catawba Per Capita Payment Trust Fund, the Trust
Funds established in accordance with this section shall
continue in existence so long as the Tribe exists and is
recognized by the United States. The principal of these
Trust Funds shall not be invaded or distributed except
as expressly authorized in this Act or in the Settlement
Agreement.
(j) TRANSFER OF MONEY AMONG TRUST FUNDS.—
The Tribe, in consultation with the Secretary, shall have
the authority to transfer principal and accumulated in-
come between Trust Funds only as follows:
(1) Funds may be transferred among the Ca-
tawba Economic Development Trust Fund, the Ca-
tawba Land Acquisition Trust Fund and the Ca-
tawba Social Services and Elderly Assistance Trust
Fund, and from any of those three Trust Funds into
the Catawba Education Trust Fund; except, that the
mandatory share of State, local, and private sector
funds invested in the original corpus of the Catawba
Education Trust Fund shall not be transferred to
any other Trust Fund.
(2) Any Trust Fund, except for the Catawba
Education Trust Fund, may be dissolved by a vote
of two-thirds of those Members eligible to vote, and
the assets in such Trust Fund shall be transferred
to the remaining Trust Funds; except, that (A) no
assets shall be transferred from any of the Trust
Funds into the Catawba Per Capita Payment Trust
Fund, and (B) the mandatory share of State, local
and private funds invested in the original corpus of
the Catawba Education Trust Fund may not be
transferred or used for any non-educational pur-
poses.
(3) The dissolution of any Trust Fund shall re-
quire the approval of the Secretary pursuant to the
Secretarial approval provisions set forth in sub-
section (b)(5)(D) of this section.
(k) TRUST FUND ACCOUNTING.—(1) The Secretary
shall account to the Tribe periodically, and at least annu-
ally, for all Catawba Trust Funds being managed and ad-
ministered by the Secretary. The accounting shall—
(A) identify the assets in which the Trust
Funds have been invested during the relevant period;
(B) report income earned during the period,
distinguishing current income and capital gains;
(C) indicate dates and amounts of distributions
to the Tribe, separately distinguishing current in-
come, accumulated income, and distributions of prin-
cipal; and
(D) identify any invasions or repayments of
principal during the relevant period and record pro-
visions the Tribe has made for repayment or restora-
tion of principal.
(2)(A) Any outside investment management firm en-
gaged by the Tribe shall account to the Tribe and sepa-
rately to the Secretary at periodic intervals, at least quar-
terly. Its accounting shall—
(i) identify the assets in which the Trust Funds
have been invested during the relevant period;
(ii) report income earned during the period,
separating current income and capital gains;
(iii) indicate dates and amounts of distributions
to the Tribe, distinguishing current income, accumu-
lated income, and distributions of principal; and
(iv) identify any invasions or repayments of
principal during the relevant period and record pro-
visions the Tribe has made for repayment or restora-
tion of principal.
(B) Prior to distributing principal from any Trust
Fund, the investment management firm shall notify the
Secretary of the proposed distribution and the Tribe’s pro-
posed use of such funds, following procedures to be agreed
upon by the investment management firm, the Secretary,
and the Tribe. The Secretary shall have 15 days within
which to object in writing to any such invasion of prin-
cipal. Failure to object will be deemed approval of the dis-
tribution.
(C) All Trust Funds held and managed by any invest-
ment management firm shall be audited annually by a cer-
tified public accounting firm approved by the Secretary,
and a copy of the annual audit shall be submitted to the
Tribe and to the Secretary within four months following
the close of the Trust Funds’s fiscal year.
(l) REPLACEMENT OF INVESTMENT MANAGEMENT
FIRM AND MODIFICATION OF INVESTMENT MANAGEMENT
PLAN.—The Tribe shall not replace the investment man-
agement firm approved by the Secretary without prior
written notification to the Secretary and approval by the
Secretary of any investment management firm chosen by
the Tribe as a replacement. Such Secretarial approval
shall be given or denied in accordance with the Secretarial
approval provisions contained in subsection (b)(5)(D) of
this section. The Tribe and its investment management
firm shall also notify the Secretary in writing of any revi-
sions in the investment management plan which materially
increase investment risk or significantly change the invest-
ment management plan, or the agreement, made in con-
sultation with the Secretary pursuant to which the outside
management firm was retained.
(m) TRUST FUNDS NOT COUNTED FOR CERTAIN
PURPOSES; USE
AS MATCHING FUNDS.—None of the
funds, assets, income, payments, or distributions from the
trust funds established pursuant to this section (except
funds distributed from the Catawba Per Capita Trust
Fund) shall at any time affect the eligibility of the Tribe
or its Members for, or be used as a basis for denying or
reducing funds to the Tribe or its Members under any
Federal, State, or local program. Distributions from these
Trust Funds may be used as matching funds, where ap-
propriate, for Federal grants or loans.
SEC. 14. ESTABLISHMENT OF EXPANDED RESERVATION.
(a) EXISTING RESERVATION.—The State, after ob-
taining any necessary judicial approval, shall convey the
Existing Reservation to the United States as trustee for
the Tribe, and the obligation of the State as trustee for
the Tribe with respect to this land shall cease.
(b) EXPANDED RESERVATION.—(1) The Secretary,
in consultation with the Tribe, shall develop an Expanded
Reservation in the manner prescribed by the Settlement
Agreement.
(2) The Secretary, after consulting with the Tribe,
shall engage a professional land planning firm and a reg-
istered land surveyor as provided in the Settlement Agree-
ment. The Secretary will bear the cost of all services ren-
dered by the surveyor and the planning firm.
(3) After the effective date of this Act, the Secretary,
in consultation with the Tribe, may identify, purchase, and
place in Reservation status tracts of lands in the manner
prescribed by the Settlement Agreement.
(4) The Secretary shall bear the cost of all title ex-
aminations, preliminary subsurface soil investigations, and
level one environmental audits to be performed on each
parcel contemplated for purchase for the Expanded Res-
ervation, and shall report the results to the Tribe. Pay-
ment of any option fee and the purchase price shall be
drawn from the Catawba Land Acquisition Trust Fund.
(5) The total area of the Expanded Reservation shall
be limited to 3,000 acres, including the Existing Reserva-
tion, but the Tribe may exclude from this limit up to 600
acres of additional land under the conditions set forth in
the Settlement Agreement. The Tribe may seek to have
the permissible area of the Expanded Reservation en-
larged by an additional 600 acres as set forth in the Set-
tlement Agreement.
(6) All lands acquired by the Secretary for the Ex-
panded Reservation will be held in trust together with the
Existing Reservation which the State is to convey to the
United States.
(c) EXPANSION ZONES.—(1) Subject to the condi-
tions, criteria, and procedures set forth in the Settlement
Agreement, the Secretary and the Tribe shall endeavor at
the outset to acquire contiguous tracts for the Expanded
Reservation in the ‘‘Catawba Reservation Primary Expan-
sion Zone’’, as defined in the Settlement Agreement.