I
105TH CONGRESS
1ST SESSION
H. R. 1604
To provide for the division, use, and distribution of judgment funds of
the Ottawa and Chippewa Indians of Michigan pursuant to dockets
numbered 18–E, 58, 364, and 18–R before the Indian Claims Commis-
sion.
IN THE HOUSE OF REPRESENTATIVES
MAY 14, 1997
Mr. KILDEE (for himself, Mr. HAYWORTH, and Mr. KENNEDY of Rhode Is-
land) introduced the following bill; which was referred to the Committee
on Resources
A BILL
To provide for the division, use, and distribution of judgment
funds of the Ottawa and Chippewa Indians of Michigan
pursuant to dockets numbered 18–E, 58, 364, and 18–
R before the Indian Claims Commission.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
SECTION 1. TABLE OF CONTENTS.
Sec. 1. Table of contents.
Sec. 2. Findings; purpose.
Sec. 3. Definitions.
Sec. 4. Division of funds.
Sec. 5. Development of tribal plans for use or distribution of funds.
Sec. 6. Preparation of judgment distribution roll of descendants.
Sec. 7. Plan for use and distribution of bay mills indian community funds.
Sec. 8. Plan for use of Sault Ste. Marie tribe of Chippewa Indians of Michigan
funds.
Sec. 9. Payment of per capita shares.
Sec. 10. Newly-recognized tribes.
Sec. 11. Treatment of funds for certain purposes.
Sec. 12. Treaties not affected.
SEC. 2. FINDINGS; PURPOSE.
(a) FINDINGS.—Congress finds the following:
(1) Judgments were rendered in the Indian
Claims Commission in dockets numbered 18–E, 58,
and 364 in favor of the Ottawa and Chippewa Indi-
ans of Michigan and in docket numbered 18–R in
favor of the Sault Ste. Marie Band of Chippewa In-
dians.
(2) The funds Congress appropriated to pay
these judgments have been held by the Department
of the Interior for the beneficiaries pending a divi-
sion of the funds among the beneficiaries in a man-
ner acceptable to the tribes and descendency group
and pending development of plans for the use and
distribution of the respective tribes’ share.
(3) The 1836 treaty negotiations show that the
United States concluded negotiations with the Chip-
pewa concerning the cession of the upper peninsula
and with the Ottawa with respect to the lower penin-
sula.
(4) A number of sites in both areas were used
by both the Ottawa and Chippewa Indians. The Ot-
tawa and Chippewa Indians were intermarried and
there were villages composed of members of both
tribes.
(b) PURPOSE.—It is the purpose of this Act to pro-
vide for the fair and equitable division of the judgment
funds among the beneficiaries and to provide the oppor-
tunity for the tribes to develop plans for the use or dis-
tribution of their share of the funds.
SEC. 3. DEFINITIONS.
For purposes of this Act the following definitions
apply:
(1) The term ‘judgment funds’ means funds ap-
propriated in full satisfaction of judgments made in
the Indian Claims Commission—
(A) reduced by an amount for attorneys
fees and litigation expenses; and
(B) increased by the amount of any inter-
est accrued with respect to such funds.
(2) The term ‘‘dockets 18–E and 58 judgment
funds’’ means judgment funds awarded in dockets
numbered 18–E and 58 in favor of the Ottawa and
Chippewa Indians of Michigan.
(3) The term ‘‘docket 364 judgment funds’’
means the judgment funds awarded in docket num-
bered 364 in favor of the Ottawa and Chippewa In-
dians of Michigan.
(4) The term ‘‘docket 18–R judgment funds’’
means the judgment funds awarded in docket num-
bered 18–R in favor of the Sault Ste. Marie Bands
of Chippewa Indians.
(5) The term ‘‘judgment distribution roll of de-
scendants’’ means the roll prepared under section 6.
(6) The term ‘‘Secretary’’ means the Secretary
of the Interior.
SEC. 4. DIVISION OF FUNDS.
(a) DOCKET 18–E AND 58 JUDGMENT FUNDS.—The
Secretary shall divide the docket 18–E and 58 judgment
funds as follows:
(1) 
The 
lesser 
of 
13.5 
percent 
or
$9,141,974.94, for individuals on the judgment dis-
tribution roll of descendants.
(2) 34.6 percent to the Sault Ste. Marie Tribe
of Chippewa Indians of Michigan and the Bay Mills
Indian Community, of which—
(A) the lesser of 35 percent of the prin-
cipal and interest as of December 31, 1996, or
$8,313,877 shall be for the Bay Mills Indian
Community; and
(B) the remaining amount shall be for the
Sault Ste. Marie Tribe of Chippewa Indians of
Michigan.
(3) 17.3 percent to the Grand Traverse Band
of Ottawa and Chippewa Indians of Michigan.
(4) 17.3 percent to the Little Traverse Bay
Bands of Odawa Indians of Michigan.
(5) 17.3 percent to the Little River Band of Ot-
tawa Indians of Michigan.
(6) Any funds remaining after distribution pur-
suant to paragraphs (1) through (5) shall be divided
and distributed to each of the recognized tribes list-
ed in this subsection in an amount which bears the
same ratio to the distribution of judgment funds
pursuant to paragraphs (1) through (5).
(b) DOCKET 364 JUDGMENT FUNDS.—The Secretary
shall divide the docket 364 judgment funds as follows:
(1) The lesser of 20 percent or $25,026.79 for
individuals on the judgment distribution roll of de-
scendants.
(2) 32 percent to the Sault Ste. Marie Tribe of
Chippewa Indians of Michigan and the Bay Mills In-
dian Community, of which—
(A) 35 percent shall be for the Bay Mills
Indian Community; and
(B) the remaining amount shall be for the
Sault Ste. Marie Tribe of Chippewa Indians of
Michigan.
(3) 16 percent to the Grand Traverse Band of
Ottawa and Chippewa Indians of Michigan.
(4) 16 percent to the Little Traverse Bay
Bands of Odawa Indians of Michigan.
(5) 16 percent to the Little River Band of Ot-
tawa Indians of Michigan.
(6) Any funds remaining after distribution pur-
suant to paragraphs (1) through (5) shall be divided
and distributed to each of the recognized tribes list-
ed in this subsection in an amount which bears the
same ratio to the distribution of judgment funds
pursuant to paragraphs (1) through (5).
(c) DOCKET 18–R JUDGMENT FUNDS.—The Sec-
retary shall divide the docket 18–R judgment funds as fol-
lows:
(1) 65 percent to the Sault Ste. Marie Tribe of
Chippewa Indians of Michigan.
(2) 35 percent to the Bay Mills Indian Commu-
nity.
(d) AMOUNTS FOR JUDGMENT DISTRIBUTION ROLL
OF DESCENDANTS HELD IN TRUST.—The Secretary shall
hold amounts referred to in subsections (a)(1) and (b)(1)
for individuals on the judgment distribution roll of de-
scendants in trust pending distribution under section 6.
SEC. 5. DEVELOPMENT OF TRIBAL PLANS FOR USE OR DIS-
TRIBUTION OF FUNDS.
(a) DISBURSEMENT OF FUNDS.—(1) The Secretary
shall disburse the respective share of the judgment funds
described in section 4 to a tribe specified in subsection
(b) not later than 30 days after a plan for use and dis-
tribution of such funds has been approved in accordance
with this section. Disbursement of a tribe’s share shall not
be dependent upon approval of any other tribe’s plan.
(2) Section 7 shall be the plan for use and distribu-
tion of the judgment funds described in section 4(a)(2)(A).
Such plan shall be approved upon the enactment of this
Act and such funds shall be distributed by the Secretary
to the Bay Mills Indian Community not later than 90 days
after the date of the enactment of this Act to be used
and distributed in accordance with section 7.
(3) Section 8 shall be the plan for use and distribu-
tion of the judgment funds described in section
4(a)(2)(B). Such plan shall be approved upon the enact-
ment of this Act and such funds shall be distributed by
the Secretary to the Sault Ste. Marie Band of Chippewa
Indians of Michigan not later than 90 days after the date
of the enactment of this Act to be used and distributed
in accordance with section 8.
(b) ELIGIBLE TRIBES.—The tribes referred to in
subsection (a) are the Grand Traverse Band of Ottawa
and Chippewa Indians of Michigan, the Little Traverse
Bay Bands of Odawa Indians of Michigan, and the Little
River Band of Ottawa Indians of Michigan.
(c) APPROVAL OR COMMENT OF SECRETARY.—Not
later than 30 days after a tribe submits a plan for the
use and distribution of its respective share of the judg-
ment funds and a resolution of the governing body of the
tribe accepting such plan to the Secretary, the Secretary
shall—
(1) if the plan complies with the provisions of
section 3(b) of Public Law 93–134 (25 U.S.C.
1403(b)), approve the plan; or
(2) if the plan does not comply with the provi-
sions of section 3(b) of Public Law 93–134 (25
U.S.C. 1403(b)), return the plan to the tribe with
comments advising the tribe why the plan does not
comply with such provisions.
(d) RESPONSE BY TRIBE.—The tribe shall have 60
days after receipt of comments under subsection (c)(2),
or other time as the tribe and the Secretary agree upon,
submission of the plan pursuant to this Act shall comply
with section 4 of Public Law 93–134 (25 U.S.C. 1404).
SEC. 6. PREPARATION OF JUDGMENT DISTRIBUTION ROLL
OF DESCENDANTS.
(a) PREPARATION.—Not later than 9 years after the
date of the enactment of this Act, the Secretary shall pre-
pare, in accordance with part 61 through part 65 of title
25, Code of Federal Regulations, a judgment distribution
roll of all citizens of the United States who—
(1) were born on or before the date of enact-
ment of this Act;
(2) were living on the date of the enactment of
this Act;
(3) are of at least one-quarter Michigan Ottawa
or Chippewa Indian blood, or a combination thereof;
(4) are not members of the tribal organizations
listed in section 4;
(5) are lineal descendants whose Michigan Ot-
tawa or Chippewa ancestry is derived from at least
one of the groups described in subsection (d); and
(6) are not described in subsection (e).
(b) APPLICATIONS.—Applications for inclusion on the
judgment distribution roll of descendants must be filed
with the superintendent, Michigan agency, Bureau of In-
dian Affairs, Sault Ste. Marie, Michigan, not later than
1 year after the date of enactment of this Act.
(c) APPEALS.—Appeals arising under this section
shall be handled in accordance with part 61 through part
65 of title 25, Code of Federal Regulations.
(d) GROUPS.—The groups referred to in subsection
(a)(5) are—
(1) the Ottawa Bands of Grand River, Tra-
verse, Grand Traverse, Little Traverse, Maskigo, or
L’Arbre Croche;
(2) the Chippewa Bands of Sault Ste. Marie,
Michilmackinac, or Cheboigan; and
(3) any Ottawa or Chippewa subdivisions of any
groups referred to in paragraph (1) or (2).
(e) INELIGIBLE INDIVIDUALS.—An individual is not
eligible under this section, if that individual—
(1) received funds pursuant to the Secretarial
Plan effective July 17, 1983, for the use and dis-
tribution of Potawatomi judgment funds;
(2) received funds pursuant to the Secretarial
Plan effective November 12, 1977, for the use and
distribution of Saginaw Chippewa judgment funds;
(3) is a member of the Keweenaw Bay Chip-
pewa Indian Community of Michigan on the date of
the enactment of this Act; or
(4) is a member of the Lac Vieux Desert Band
of Lake Superior Chippewa Indians on the date of
the enactment of this Act.
(f) USE OF HORACE B. DURANT ROLL.—In prepar-
ing the judgment distribution roll of descendants under
this section, the Secretary shall refer to the Horace B.
Durant Roll, approved February 18, 1910, of the Ottawa
and Chippewa Tribe of Michigan, as qualified and cor-
rected by other rolls and records acceptable to the Sec-
retary, including the Durant Field Notes of 1908–1909
and the Annuity Payroll of the Ottawa and Chippewa
Tribe of Michigan approved May 17, 1910. The Secretary
may employ the services of the descendant group enroll-
ment review committees.
SEC. 7. PLAN FOR USE AND DISTRIBUTION OF BAY MILLS
INDIAN COMMUNITY FUNDS.
(a) TRIBAL LAND TRUST.—(1) The Executive Coun-
cil of the Bay Mills Indian Community shall establish a
nonexpendable trust to be known as the ‘‘Land Trust’’.
Not later than 60 days after receipt of the funds distrib-
uted to the Bay Mills Indian Community pursuant to this
Act, the Executive Council of the Bay Mills Indian Com-
munity shall deposit 20 percent of the share of the Bay
Mills Indian Community into the Land Trust.
(2) The Executive Council shall be the trustee of the
Land Trust and shall administer the Land Trust in ac-
cordance with this section. The Executive Council may re-
tain or hire a professional trust manager and may pay
the prevailing market rate for such services. Such payment
for services shall be made from the current income ac-
counts of the trust and charged against earnings of the
current fiscal year.
(3) The earnings generated by the Land Trust shall
be used annually and exclusively for the consolidation and
enhancement of tribal landholdings through purchase or
exchange. Any land so acquired shall be held in trust by
the United States for the Bay Mills Indian Community.
(4) The principal of the Land Trust shall not be ex-
pended for any purpose, including but not limited to, per
capita payment to members of the Bay Mills Indian Com-
munity.
(5) The Land Trust shall be maintained as a separate
account, which shall be audited at least once during each
fiscal year by a certified public accountant who shall pre-
pare a report on the results of such audit. Such report
shall be a public document, and shall be available for in-
spection by any member of the Bay Mills Indian Commu-
nity.
(6) Notwithstanding any other provision of law, the
approval of the Secretary of any payment from the Land
Trust shall not be required and the Secretary shall have
no trust responsibility for the investment, supervision, ad-
ministration, or expenditure of funds from the Land
Trust.
(b) LAND CLAIMS DISTRIBUTION TRUST.—(1) The
Executive Council of the Bay Mills Indian Community
shall establish a nonexpendable to be known as the ‘‘Land
Claims Distribution Trust Fund’’. Not later than 60 days
after receipt of the funds distributed to the Bay Mills In-
dian Community pursuant to this Act, the Executive
Council of the Bay Mills Indian Community shall deposit
into the Land Claims Distribution Trust Fund the prin-
cipal funds which shall consist of—
(A) amounts remaining of the funds distributed
to the Bay Mills Indian Community after distribu-
tion pursuant to subsections (a) and (c);
(B) 10 percent of the annul earnings generated
by the Land Claims Distribution Trust Fund; and
(C) such other funds which the Executive Coun-
cil chooses to add to the Land Claims Distribution
Trust Fund.
(2) The Executive Council shall be the trustee of the
Land Claims Distribution Trust Fund and shall admin-
ister the Land Claims Distribution Trust Fund in accord-
ance with this section. The Executive Council may retain
or hire a professional trust manager and may pay for said
services the prevailing market rate. Such payment for
services shall be made from the current income accounts
of the trust and charged against earnings of the current
fiscal year.
(3) 90 percent of the annual earnings of the Land
Claims Distribution Trust fund shall be distributed on Oc-
tober 1 of each year after the creation of the trust fund
to any person who—
(A) is enrolled as a member of the Bay Mills
Indian Community on the date of the enactment of
this Act;
(B) is alive on the date of the enactment of this
Act;
(C) is at least 55 years of age as of the annual
distribution date; and
(D) has been enrolled as a member of the Bay
Mills Indian Community for a minimum of 25 years
as of the annual distribution date or was adopted as
a member of the Bay Mills Indian Community on or
before June 30, 1996.
(4) In the event that a member of the Bay Mills In-
dian Community who is eligible for payment under sub-
section (b)(3), should die after preparation of the annual
distribution roll and prior to the October 1 distribution,
that individual’s share for that year shall be provided to
the member’s heirs at law.
(5) In the event that a member of the Bay Mills In-
dian Community who is at least 55 years of age and who
is eligible for payment under subsection (b)(3), shall have
a guardian appointed for said individual, such payment
shall be made to the guardian.
(6) Under no circumstances shall any part of the
principal of the Land Claims Distribution Trust fund be
distributed as a per capita payment to members of the
Bay Mills Indian Community, or used or expended for any
other purpose by the Executive Council.
(7) The Land Claims Distribution Trust fund shall
be maintained as a separate account, which shall be au-
dited at least once during each fiscal year by an independ-
ent certified public accountant who shall prepare a report
on the results of such audit. Such report shall be a public
document, and shall be available for inspection by any
member of the Bay Mills Indian Community.
(8) Notwithstanding any other provision of law, the
approval of the Secretary of any payment from the Land
Claims Distribution Trust fund shall not be required and
the Secretary shall have no trust responsibility for the in-
vestment, supervision, administration, or expenditure of
the fund.
(c) LAND CLAIMS INITIAL PAYMENT.—As compensa-
tion to the members of the Bay Mills Indian Community
for the delay in distribution of the judgment fund, pay-
ment shall be made by the Executive Council within 30
days of receipt of the Bay Mills Indian Community’s share
of the judgment fund from the Secretary, as follows:
(1) The sum of $3,000 to each enrolled member
of the Bay Mills Indian Community living on the
date of enactment of this legislation, who has at-
tained the age of 55 years, but is less than 62 years
of age if that individual was adopted into or a mem-
ber of the Bay Mills Indian Community on or before
June 30, 1996.
(2) The sum of $5,000 to each enrolled member
of the Bay Mills Indian Community living on the
date of enactment of this legislation, who is between
the ages of 62 and 69 years of age if that individual
was adopted into or a member of the Bay Mills In-
dian Community on or before June 30, 1996.
(3) The sum of $10,000 to each enrolled mem-
ber of the Bay Mills Indian Community living on the
date of enactment of this legislation, who is 70 years
of age or older if that individual was adopted into
or a member of the Bay Mills Indian Community on
or before June 30, 1996.
(d) ANNUAL PAYMENTS FROM LAND CLAIMS DIS-
TRIBUTION TRUST FUND.—The Executive Council shall
prepare the annual distribution roll and ensure its accu-
racy prior to August 30 of each year prior to distribution.
The distribution roll shall identify each member of the Bay
Mills Indian Community who has attained the minimum
age and membership duration required for distribution eli-
gibility, as specified in subsection (b)(3). The number of
eligible persons in each age category defined in this sub-
section, multiplied by the number of shares for which the
age category is entitled, added together for the 3 cat-
egories, shall constitute the total number of shares to be
distributed each year. On each October 1, the shares shall
be distributed as follows:
(1) Each member who is at least 55 years of
age and less than 62 years of age shall receive 1
share.
(2) Each member who is between the ages of 62
and 69 years shall receive 2 shares.
(3) Each member who is 70 years of age or
older shall receive 3 shares.
SEC. 8. PLAN FOR USE OF SAULT STE. MARIE TRIBE OF
CHIPPEWA INDIANS OF MICHIGAN FUNDS.
(a) SELF-SUFFICIENCY FUND.
(1) The Sault Ste. Marie Tribe of Chippewa In-
dians of Michigan (referred to in this section as the
‘‘Sault Ste. Marie Tribe’’), through its board of di-
rectors, shall establish a trust fund for the benefit
of the Sault Ste. Marie Tribe which shall be known
as the ‘‘Self-Sufficiency Fund’’. The principal of the
Self-Sufficiency Fund shall consist of—
(A) the Sault Ste. Marie Tribe’s share of
the judgment funds transferred by the Sec-
retary to the board of directors pursuant to
subsection (e);
(B) such amounts of the interest and other
income of the Self-Sufficiency Fund as the
board of directors may choose to add to the
principal; and
(C) any other funds that the board of di-
rectors of the Sault Ste. Marie Tribe choose to
add to the principal.
(2) The board of directors shall be the trustee
of the Self-Sufficiency Fund and shall administer
the fund in accordance with the provisions of the
section.
(b) USE OF PRINCIPAL.—
(1) The principal of the Self-Sufficiency Fund
shall be used exclusively for investments or expendi-
tures which the board of directors determines—
(A) are reasonably related to—
(i) economic development beneficial to
the tribe; or
(ii) development of tribal resources; or
(B) are otherwise financially beneficial to
the tribe and its members.
(2) At least one-half of the principle of the Self-
Sufficiency Fund at any given time shall be invested
in investment instruments or funds calculated to
produce a reasonable rate of return without undue
speculation or risk, unless, for good cause shown by
the Sault Ste. Marie Tribe, the Secretary determines
that a lesser amount may be invested in that man-
ner.
(3) No portion of the principal of the Self-Suffi-
ciency Fund shall be distributed in the form of per
capita payments.
(c) USE OF SELF-SUFFICIENCY FUND INCOME.—
The interest and other investment income of the Self-Suf-
ficiency Fund shall be distributed—
(1) as an addition to the principal of the fund;
(2) as a dividend to tribal members;
(3) as a per capita payment to some group or
category of tribal members designated by the board
of directors; or
(4) for educational, social welfare, health, cul-
tural, or charitable purposes which benefit the mem-
bers of the Sault Ste. Marie Tribe.
(d) GENERAL RULES AND PROCEDURES.—
(1) The Self-Sufficiency Fund shall be main-
tained as a separate account.
(2) The books and records of the Self-Suffi-
ciency Fund shall be audited at least once during
each fiscal year by an independent certified public
accountant who shall prepare a report on the results
of such audit. Such report shall be treated as a pub-
lic document of the Sault Ste. Marie Tribe and a
copy of the report shall be available for inspection by
any enrolled member of the Sault Ste. Marie Tribe.
(e) TRANSFER OF JUDGMENT FUNDS TO SELF-SUF-
FICIENCY FUND.—
(1) The Secretary shall transfer to the Self-Suf-
ficiency Fund the share of the funds which have
been allocated to the Sault Ste. Marie Tribe pursu-
ant to section 4.
(2) Notwithstanding any other provision of law,
after the transfer required by paragraph (1) the ap-
approved by the Secretary, unless otherwise provided
in the statute which recognized the tribe; and
(C) before the judgment distribution roll of de-
scendants is approved, the judgment funds shall be
distributed per capita under section ø6¿.
(d) NOTIFICATION TO INDIVIDUALS.—The Bureau of
Indian Affairs shall notify any individual that is listed on
the newly-recognized tribe’s membership list and that the
funds to which the individual would be entitled under this
Act will be held in trust for the individual’s newly-recog-
nized tribe unless, not later than 60 days after such notifi-
cation, the individual informs the Bureau of Indian Affairs
and the tribe, in writing, that the individual relinquishes
membership in the newly-recognized tribe.
SEC. 11. TREATMENT OF FUNDS IN RELATION TO OTHER
LAWS.
(a) PUBLIC LAW 93–134.—All funds distributed pur-
suant to this Act or to any plan approved in accordance
with this Act, including interest and investment income
accrued on such funds before or while such funds were
or are held in trust, shall be subject to the provisions of
section 7 of Public Law 93–134.
(b) TREATMENT RELATING TO FEDERAL ASSIST-
ANCE.—The eligibility for or receipt of distributions under
this Act by a tribe or individual shall not considered as
income, resources, or otherwise when determining the eli-
gibility for or computation of any payment or other benefit
to such tribe, individual, or household under—
(1) any financial aid program of the United
States, including grants and contracts subject to the
Indian Self-Determination Act; or
(2) any other benefit to which such tribe,
household, or individual would otherwise be entitled
under any Federal or federally assisted program.
SEC. 12. TREATIES NOT AFFECTED.
No provision of this Act shall be construed to con-
stitute an amendment, modification, or interpretation of
any treaty to which a tribe mentioned in this Act is a party
nor to any right secured to such a tribe or to any other
tribe by any treaty.
Æ