Prairie Band Potawatomi Nation Shab-eh-nay Band Reservation Settlement Act of 2021
Bill: S.3242 | Sponsor: Sen. Moran, Jerry (R-KS)
Policy area: Native Americans

Summary:
Prairie Band Potawatomi Nation Shab-eh-nay Band Reservation Settlement Act of 2021
This bill provides for the settlement of claims by the Prairie Band Potawatomi Nation relating to the Shab-eh-nay Band Reservation in northern Illinois. The reservation consists of 1,280 acres and, due to a sale in 1849, is currently occupied by the tribe and nontribe entities, including the State of Illinois, the Dekalb County government, and corporate entities.
In particular, the bill recognizes the tribe's ownership of 130 acres of land within the reservation. Further, the bill extinguishes the tribe's title to the remainder of the reservation.
Additionally, the bill requires the Department of the Interior to pay the tribe a specified amount as partial settlement of the tribe's claims for the tribe to promote economic development and land acquisition. The bill also outlines a process for subsequent payments to the tribe.
The tribe may use these settlement funds to acquire up to 1,151 acres of land within or near the reservation.
The bill authorizes the tribe to enter into agreements with the State of Illinois and local governments. It requires land that is located within the boundaries of the reservation and owned by state and local governments to be managed to protect any human or cultural remains.

To provide for the settlement of claims relating to the Shab-eh-nay 
         Band Reservation in Illinois, and for other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Prairie Band Potawatomi Nation Shab-
eh-nay Band Reservation Settlement Act of 2021''.

SEC. 2. FINDINGS; PURPOSES.

    (a) Findings.--Congress finds that--
            (1) pursuant to the Treaty of July 29, 1829, made and 
        concluded at Prairie du Chien (7 Stat. 320) (commonly known as 
        the ``Second Treaty of Prairie du Chien''), the Potawatomi and 
        other affected Indian Tribes ceded certain land in northern 
        Illinois, except for 2 parcels totaling 1,280 acres for 
        Potawatomi Chief Shab-eh-nay and his Band at their village near 
        Paw Paw Grove, Illinois;
            (2)(A) pursuant to the Treaty of September 26, 1833, made 
        at Chicago (7 Stat. 431) (commonly known as the ``Treaty of 
        Chicago''), the Potawatomi and other Indians ceded 
        approximately 5,000,000 acres of land, including the Shab-eh-
        nay Band Reservation; but
            (B) the Senate rejected the provision that ceded that 
        reservation, with the effect of affirming the Indian-held title 
        and boundaries of the Shab-eh-nay Band Reservation;
            (3)(A) in 1849, while Chief Shab-eh-nay was visiting his 
        relatives in Kansas, the Commissioner of the General Land 
        Office of the United States sold the Shab-eh-nay Band 
        Reservation at public auction to non-Indians who erroneously 
        believed that they had acquired good title to the land on which 
        the Shab-eh-nay Band Reservation is located; and
            (B) the Shab-eh-nay Band Reservation is illegally occupied 
        as of the date of enactment of this Act;
            (4) the Associate Solicitor of the Department of the 
        Interior issued an opinion on July 24, 2000, that concluded 
        that--
                    (A) ``the Shab-eh-nay Band Reservation continues to 
                exist'';
                    (B) there is no evidence that Chief Shab-eh-nay 
                abandoned the Shab-eh-nay Band Reservation; and
                    (C) ``even if it were true that Shab-eh-nay's Band 
                had abandoned the land, the Band's treaty recognized 
                title to that land could not be extinguished without 
                Congressional action'';
            (5) the Solicitor of the Department of the Interior issued 
        an opinion on January 18, 2001, that--
                    (A) confirmed the findings of the Associate 
                Solicitor of the Department of the Interior under 
                paragraph (4); and
                    (B) stated that--
                            (i) the Shab-eh-nay Band held recognized 
                        title to the Shab-eh-nay Band Reservation;
                            (ii) Congress never authorized the 
                        conveyance of the Shab-eh-nay Band Reservation;
                            (iii) the Tribe is the lawful successor in 
                        interest to Chief Shab-eh-nay and his Band; and
                            (iv) the Department of the Interior 
                        believes that the United States continues to 
                        bear a trust responsibility to the Tribe for 
                        the Shab-eh-nay Band Reservation;
            (6) Congress has never acted by treaty or statute to 
        extinguish the recognized Indian title to the Shab-eh-nay Band 
        Reservation;
            (7) the Tribe is the successor in interest to Chief Shab-
        eh-nay and his Band and the rightful owner and occupant of the 
        Shab-eh-nay Band Reservation;
            (8) the Federal Government, through the actions of the 
        General Land Office, has deprived the Tribe of the right of 
        exclusive use and occupancy of the Shab-eh-nay Band Reservation 
        without legal authorization or just compensation;
            (9) certain non-Indian individuals, entities, and local 
        governments occupying land within the boundaries of the Shab-
        eh-nay Band Reservation as of the date of enactment of this 
        Act, including the State and the County--
                    (A) acquired ownership interests to the land in 
                good faith; and
                    (B) should be able to possess clear title to the 
                land; and
            (10) the United States has a moral and legal 
        responsibility--
                    (A) to help secure a fair and equitable settlement 
                of past inequities to the Tribe; and
                    (B) to ensure protection of the ownership interests 
                of non-Indian occupants of the Shab-eh-nay Band 
                Reservation.
    (b) Purposes.--The purposes of this Act are--
            (1) to acknowledge the unlawful sale by the Federal 
        Government of the valuable right held by the Tribe to the 
        exclusive use and occupancy of the Shab-eh-nay Band 
        Reservation;
            (2) to reaffirm Federal recognition of the ownership by the 
        Tribe of, and jurisdiction over, land that the Tribe owns 
        within the Shab-eh-nay Band Reservation;
            (3) to promote the economic self-sufficiency of the Tribe 
        and the members of the Tribe;
            (4) to extinguish the Indian title to, and confirm the 
        ownership by the State, the County, and certain individuals and 
        entities of, certain land within the boundaries of the Shab-eh-
        nay Band Reservation;
            (5) to provide stability and security to the State and 
        residents of the State, the local governments and the areas 
        over which the local governments exercise jurisdiction, and 
        businesses regarding the ownership and use by the Tribe of the 
        Reaffirmed Reservation;
            (6) to extinguish potential claims by the Tribe against the 
        United States, the State, the local governments, and private 
        individuals and entities that could be a direct consequence of 
        not reaching a settlement with the Tribe;
            (7) to require the Secretary to preserve and protect, but 
        not manage, the Reaffirmed Reservation in furtherance of trust 
        responsibility of the Federal Government; and
            (8) to authorize the Secretary--
                    (A) to execute the waiver and release of claims and 
                compensate the Tribe; and
                    (B) to take any other action necessary to carry out 
                this Act.

SEC. 3. DEFINITIONS.

    In this Act:
            (1) County.--The term ``County'' means Dekalb County in the 
        State.
            (2) Local government.--The term ``local government'' means 
        any unit of local government exercising authority over land 
        located within the Reservation as of the date of enactment of 
        this Act.
            (3) Reaffirmed reservation.--The term ``Reaffirmed 
        Reservation'' means--
                    (A) the land recognized as being under the 
                ownership of the Tribe under section 4(a); and
                    (B) any land located within the Replacement Area 
                that is acquired by the Tribe in restricted fee status 
                after the date of enactment of this Act.
            (4) Replacement area.--The term ``Replacement Area'' means 
        the aboriginal territory of the Tribe, located near Shabbona, 
        Illinois, which is contained within the area bounded--
                    (A) on the north by Interstate 88;
                    (B) on the west by Interstate 39;
                    (C) on the south by State Route 30 and Preserve 
                Road; and
                    (D) on the east by South 4th Street and State Route 
                23.
            (5) Reservation.--The term ``Reservation'' means the 1,280 
        acres of land in the State located in sec. 23, the W\1/2\ of 
        sec. 25, and the E\1/2\ of sec. 26 in T. 38 N., R. 3 E., Third 
        Principal Meridian.
            (6) Restricted fee status.--The term ``restricted fee 
        status'', with respect to land, means that the land--
                    (A) is--
                            (i) owned in fee by the Tribe by aboriginal 
                        title or conveyance;
                            (ii) held by the Tribe subject to a 
                        restriction against alienation and taxation, 
                        and therefore may not be sold by the Tribe 
                        without the consent of Congress; and
                            (iii) expressly subject to the jurisdiction 
                        of the Tribe; and
                    (B) is not subject to--
                            (i) taxation by any State or local 
                        government other than the Tribe; or
                            (ii) any provision of law governing land 
                        use that provides for the review or approval by 
                        the Secretary, directly or through agreement 
                        with another party, before the Tribe may use 
                        the land for any purpose.
            (7) Secretary.--The term ``Secretary'' means the Secretary 
        of the Interior.
            (8) State.--The term ``State'' means the State of Illinois.
            (9) Tribe.--The term ``Tribe'' means the Prairie Band 
        Potawatomi Nation, a federally recognized Indian Tribe.

SEC. 4. REAFFIRMATION OF SHAB-EH-NAY BAND RESERVATION.

    (a) Reaffirmation of Title.--Title to the 130 acres of the 
Reservation owned in fee by the Tribe as of the date of enactment of 
this Act is recognized as being under the ownership of the Tribe.
    (b) Restricted Fee Status.--The Reaffirmed Reservation--
            (1) shall be considered to be owned by the Tribe in 
        restricted fee status;
            (2) is expressly subject to the jurisdiction of the Tribe; 
        and
            (3) shall not be subject to--
                    (A) taxation by any State or local government other 
                than the Tribe; or
                    (B) any provision of law governing land use that 
                provides for the review or approval by the Secretary, 
                directly or through agreement with another party, 
                before the Tribe may use the land for any purpose.

SEC. 5. EXTINGUISHMENT OF INDIAN TITLE; CONFIRMATION OF LAND OWNERSHIP.

    (a) Extinguishment of Indian Title.--Title held by the Tribe to the 
Reservation (other than the Reaffirmed Reservation) as of the date of 
enactment of this Act is extinguished.
    (b) Confirmation of Land Ownership.--Each title to land and right-
of-way within the Reservation held by the State, the local governments, 
or any individual or entity as of November 5, 1849, is recognized and 
confirmed.

SEC. 6. WAIVER AND RELEASE OF CLAIMS.

    (a) Claims Against United States, State, Local Governments, and 
Other Parties.--The Tribe and the Secretary shall execute appropriate 
documents providing for the relinquishment by the Tribe of all claims 
against--
            (1) the United States for a breach of trust responsibility 
        associated with any sale of any portion of the Reservation; and
            (2) the State, the local governments, and any individuals 
        or entities occupying the Reservation for any trespass and 
        related damages in connection with the occupation and use of 
        the Reservation during the period beginning on November 5, 
        1849, and ending on the effective date described in subsection 
        (b).
    (b) Effective Date.--The relinquishment of claims under subsection 
(a) shall take effect on the later of--
            (1) the date on which the Tribe receives payment of all of 
        the settlement funds under section 7; and
            (2) the date on which the Secretary publishes in the 
        Federal Register a notice that the documents described in 
        subsection (a) have been executed by the Secretary and the 
        Tribe.

SEC. 7. SETTLEMENT FUNDS.

    (a) Initial Payment.--Not later than 30 days after the date of 
enactment of this Act, the Secretary shall pay to the Tribe $10,000,000 
in partial settlement of the claims of the Tribe, to be managed, 
invested, and used by the Tribe to promote economic development and 
land acquisition, as determined by the Tribe in accordance with the 
constitution and laws of the Tribe.
    (b) Subsequent Payments.--
            (1) Assessment.--
                    (A) In general.--Not later than 180 days after the 
                date of enactment of this Act, the Secretary, in 
                consultation with the Tribe, shall calculate an 
                assessment of the total damages to the Tribe associated 
                with the liability of the United States for the illegal 
                sale of the Reservation, including the current land 
                value of all land located within the Reservation.
                    (B) Report.--The Secretary shall submit to the 
                Committees on Appropriations and Indian Affairs of the 
                Senate and the Committees on Appropriations and Natural 
                Resources of the House of Representatives a report 
                describing the assessment calculated under subparagraph 
                (A).
            (2) Final settlement agreement.--The Secretary and the 
        Tribe shall negotiate and execute a final settlement agreement 
        in lieu of litigation to resolve the claims of the Tribe, in a 
        form and manner acceptable to the Attorney General, which shall 
        include terms for the payment of the remaining settlement funds 
        to the Tribe, as calculated under paragraph (1)(A).
            (3) Requirement.--The Secretary shall pay to the Tribe \1/
        3\ of the remaining settlement funds, as described in the final 
        settlement agreement executed under paragraph (2), on each of--
                    (A) the date that is 3 years after the date of 
                enactment of this Act;
                    (B) the date that is 6 years after that date of 
                enactment; and
                    (C) the date that is 9 years after that date of 
                enactment.

SEC. 8. LAND ACQUISITION; TRIBAL AUTHORITY TO ENTER INTO AGREEMENTS; NO 
              USE OF CONDEMNATION OR EMINENT DOMAIN.

    (a) Land Acquisition.--
            (1) In general.--Subject to paragraph (2), after the date 
        of enactment of this Act, the Tribe may acquire from a willing 
        seller in restricted fee status not more than a total of 1,151 
        acres of land within the Reservation or the Replacement Area 
        using the settlement funds received by the Tribe under section 
        7 or other funds of the Tribe.
            (2) Notice.--
                    (A) In general.--Before acquiring land under 
                paragraph (1), the Tribe shall give notice to the 
                Secretary.
                    (B) Deadline.--On the date that is 60 days after 
                receipt of the notice under subparagraph (A), the land 
                shall automatically--
                            (i) convert to ownership by the Tribe in 
                        restricted fee status; and
                            (ii) be considered to be part of the 
                        Reaffirmed Reservation.
    (b) Recognition of Tribal Government Authority To Enter Into 
Agreements With State and Local Governments.--The Tribe shall have the 
authority to enter into agreements with the State and any local 
government regarding the Reaffirmed Reservation and activities 
occurring on the Reaffirmed Reservation, including agreements relating 
to jurisdiction, land use, and services.
    (c) No Use of Condemnation or Eminent Domain.--Land or interests in 
land--
            (1) may not be acquired by condemnation or eminent domain 
        under this Act; but
            (2) shall be acquired by purchase by payment of fair market 
        value.
    (d) Cultural and Historic Preservation of Reservation.--Land owned 
by the State and the local governments located within the boundaries of 
the Reservation shall be managed to protect any human or cultural 
remains, consistent with applicable Federal and State law and subject 
to consultation with the Tribe.

SEC. 9. AUTHORIZATION OF APPROPRIATIONS.

    There is authorized to be appropriated to carry out this Act 
$10,000,000.
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