H. R. 2399—9
draft and distribute to each Member eligible to vote under the
tribal constitution in effect on the effective date 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 election to adopt a new
constitution and bylaws.
(c) MAJORITY VOTE FOR ADOPTION; PROCEDURE IN EVENT OF
FAILURE TO ADOPT PROPOSED CONSTITUTION.—(1) The tribal con-
stitution 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 approve
the adoption of the proposed constitution and bylaws, the Executive
Committee shall prepare another proposed 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 bylaws failed of adop-
tion. 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 subsection (b) for the election on the first proposed
constitution 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
constitution and bylaws.
(e) EXTENSION OF TIME.—Any time periods prescribed in sub-
sections (b) and (c) may be altered by written agreement between
the Executive Committee and the Secretary.
SEC. 10. ADMINISTRATIVE PROVISIONS RELATING TO JURISDICTION,
TAXATION, AND OTHER MATTERS.
In the administration of this Act:
(1) All matters involving tribal powers, immunities, and
jurisdiction, whether criminal, civil, or regulatory, shall be gov-
erned by the terms and provisions of the Settlement Agreement
and the State Act, unless otherwise provided in this Act.
(2) All matters pertaining to governance and regulation
of the reservation (including environmental regulation and
riparian rights) shall be governed by the terms and provisions
of the Settlement Agreement and the State Act, including,
but not limited to, section 17 of the Settlement Agreement
and section 27–16–120 of the State Act, unless otherwise pro-
vided in this Act.
(3) The Indian Child Welfare Act of 1978 (25 U.S.C. 1901
et seq.) shall apply to Catawba Indian children except as pro-
vided in the Settlement Agreement.
(4) Whether or not the Tribe, under section 9(a), elects
to organize under the Act of June 18, 1934, the Tribe, in
any constitution adopted by the Tribe, may be authorized to
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H. R. 2399—10
exercise such authority as is consistent with the Settlement
Agreement and the State Act.
(5) In no event may the Tribe pledge or hypothecate the
income or principal of the Catawba Education or Social Services
and Elderly Trust Funds or otherwise use them as security
or a source of payment for bonds the Tribe may issue.
(6) The Indian Self-Determination and Education Assist-
ance Act (25 U.S.C. 450 et seq.) shall apply to the Tribe except
to the extent that such application may be inconsistent with
this Act or the Settlement Agreement.
SEC. 11. TRIBAL TRUST FUNDS.
(a) PURPOSES OF TRUST FUNDS.—All funds paid pursuant to
section 5 of this Act, except for payments made pursuant to section
6(g), shall be deposited with the Secretary in trust for the benefit
of the Tribe. Separate trust funds shall be established for the
following purposes: economic development, land acquisition, edu-
cation, social services and elderly assistance, and per capita pay-
ments. Except as provided in this section, the Tribe, in consultation
with the Secretary, shall determine the share of settlement pay-
ments to be deposited in each Trust Fund, and define, consistently
with the provisions of this section, the purposes of each Trust
Fund and provisions for administering each, specifically including
provisions for periodic distribution of current and accumulated
income, and for invasion and restoration of principal.
(b) OUTSIDE MANAGEMENT OPTION.—(1) The Tribe, in consulta-
tion with and subject to the approval of the Secretary, as set
forth in this section, is authorized to place any of the Trust Funds
under professional management, outside the Department of the
Interior.
(2) If the Tribe elects to place any of the Trust Funds under
professional management outside the Department 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 engage, 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 selected 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 management 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 management, the
Tribe, in consultation with the Secretary and its investment man-
ager, shall develop—
(i) current operating and long-term capital budgets; and
(ii) a plan for managing, investing, and distributing income
and principal from the Trust Funds to match the requirements
of the Tribe’s operating and capital budgets.
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H. R. 2399—11
(B) For each Trust Fund which the Tribe elects to place under
outside professional management, the investment plan shall provide
for investment of Trust Fund assets 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 independent investment management firm.
(C) Distributions from each Trust Fund shall not exceed 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 approve 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 unreasonably
withheld and any secretarial rejection of the plan shall be accom-
panied by a detailed explanation setting forth the Secretary’s rea-
sons for rejecting the plan.
(E) Until the selection of an established investment manage-
ment firm of proven competence and experience, the Tribe shall
rely on the management, investment, and administration of the
Trust Funds by the Secretary pursuant to the provisions of this
section.
(c) TRANSFER OF TRUST FUNDS; EXCULPATION OF SECRETARY.—
Upon the Secretary’s approval of the Tribe’s investment manage-
ment firm and an investment management plan, all funds pre-
viously 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 Secretary shall be
exculpated by the Tribe from liability for any loss of principal
or interest resulting from investment decisions made by the invest-
ment management firm. Any Trust Fund transferred to an invest-
ment management firm shall be returned to the Secretary upon
written request 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 Secretary shall manage, invest, and admin-
ister this trust fund. The original principal amount of the Land
Acquisition 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 development of Reservation
and non-Reservation land pursuant to the Settlement Agreement,
costs related to land acquisition, and costs of construction of infra-
structure and development 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 request of the Tribe
and approval of the Secretary pursuant to the Secretarial approval
provisions set forth in subsection (b)(5)(D) of this section, all or
part of the balance of this trust fund may be merged into one
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H. R. 2399—12
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-Reserva-
tion land.
(4)(A) The Tribe may pledge or hypothecate the income and
principal of the Land Acquisition Trust Fund to secure loans for
the purchase of Reservation and non-Reservation lands.
(B) Following the effective date 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 Assistance 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 Secretary 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 principal and
income of this Trust Fund may be used to support tribal economic
development activities, including but not limited to infrastructure
improvements and tribal business ventures and commercial invest-
ments 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 prin-
cipal, 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 repayment of the Trust Fund.
(3) Following the effective date 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 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 approved
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 establish and main-
tain a Catawba Education 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.
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