[Federal Register Volume 63, Number 233 (Friday, December 4, 1998)]
[Notices]
[Pages 67127-67131]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-32301]
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DEPARTMENT OF THE INTERIOR
Bureau of Indian Affairs
Plan for the Use and Distribution of the Little River Band of
Ottawa Indians Share of the Judgment Funds in Docket Nos. 18-E, 58 and
364 Before the Indian Claims Commission
AGENCY: Bureau of Indian Affairs, Interior.
ACTION: Notice.
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SUMMARY: Notice is hereby given that the plan for the use and
distribution of the Little River Band of Ottawa Indians' share of the
judgment funds awarded to
[[Page 67128]]
the Ottawa and Chippewa Indians of Michigan in Docket Nos. 18-E, 58 and
364 is effective as of September 28, 1998.
FOR FURTHER INFORMATION CONTACT: Daisy West, Bureau of Indian Affairs,
Division of Tribal Government Services, MS-4631-MIB, 1849 C Street, NW,
Washington, D.C. 20240. Telephone number: (202) 208-2475.
SUPPLEMENTARY INFORMATION: The Michigan Indian Land Claims Settlement
Act of December 15, 1997, 111 Stat. 2652, and section 3(b) of the
Indian Tribal Judgment Funds Act, 25 U.S.C. 1403(b), requires that a
plan be prepared and submitted to Congress for the use and distribution
of Little River Band of Ottawa Indians' share of the funds awarded to
the Ottawa and Chippewa Indians of Michigan before the Indian Claims
Commission in Docket Nos. 18-E, 58 and 364. The plan for the use and
distribution of the funds was submitted to Congress on June 3, 1998, by
letters dated June 2, 1998. The receipt of the letters by the House of
Representatives and the Senate was recorded in the Congressional Record
published on June 9 and 11, 1998, respectively. The plan became
effective on September 28, 1998, since a joint resolution disapproving
it was not enacted. The plan reads as follows:
Plan
For the Use and Distribution of Little River Band of Ottawa Indians
Judgment Funds, Dockets 18-E, 58 and 364
Section 1. Purpose and Definitions
1.01. Purpose. This 80/20 Plan has been developed as a result of
the Indian Claims Commission dockets numbered 18-E, 58, and 364 and the
passage of Public Law 105-143, cited as the ``Michigan Indian Land
Claims Settlement Act'', which was passed on December 15, 1997, and
provides for the division of judgment funds of the Ottawa and Chippewa
Indians of Michigan. Pursuant to this law, the Little River Band of
Ottawa Indians must submit a plan to the Secretary of Interior. The
Secretary shall review the plan and discuss any problems of the plan
with the Tribe. After this review, the plan shall be submitted to
Congress prior to the distribution of any of these funds to the Tribe.
The 80/20 Plan was developed by the Tribe and approved by the
Tribal members to meet the minimum standards necessary for the
Secretary's approval. This plan also meets all of the criteria for
approval of the Secretary and Congress, including:
(a) The needs and desires of any groups or individuals who are in a
minority position, but who are also entitled to receive such funds,
have been fully ascertained and considered;
(b) The interests of minors and other legally incompetent persons
who are entitled to receive any portion of such funds as are
subsequently distributed to them are and will be protected and
preserved; provided, that such funds may be disbursed to the parents or
legal guardian of such minors or legal incompetents in such amounts as
may be necessary for the minor or legal incompetent's health,
education, welfare, or emergencies under a plan or plans approved by
the Secretary and the tribal governing body of the Indian tribe
involved;
(c) Any provision, including enrollment provisions, of the
constitution, bylaws, rules, and procedures of such tribe which may
affect the distribution or other use of such funds are in full accord
with the principles of fairness and equity; and,
(d) A significant portion of such funds shall be set aside and
programmed to serve common tribal needs, educational requirements, and
such other purposes as the circumstances of the affected Indian tribe
may justify, except not less than 20 per centum of such funds shall be
so set aside and programmed unless the Secretary determines that the
particular circumstances of the pertinent Indian tribe clearly warrant
otherwise: provided, that in the development of such plan the Secretary
shall survey past and present plans of the tribe for economic
development, shall consider long range benefits which might accrue to
the tribe from such plans, and shall encourage programming of funds for
economic development purposes where appropriate.
Definitions
1.02. 80/20. The 80/20 Tribal Plan will be referred in this
document as ``Tribal plan'' or ``plan''.
1.03. Effective Date of the 80/20 Tribal Plan. The effective date
of the plan means the date that the plan is approved by Congress.
Unless the plan is disapproved by Congress, the effective date of the
plan shall be the sixtieth (60) day after formal submittal of the plan
by the Secretary to the Congressional Committees (excluding days on
which either the House of Representatives or the Senate is not in
session because of an adjournment of more than three calendar days to a
day certain). In the event that the plan is disapproved by either
House, the effective date shall be the date the enabling legislation
for the disposition of the judgment funds is enacted into law.
1.04. Secretary of Interior. The ``Secretary'' as used in this plan
means the Secretary of Interior.
1.05. Qualified Tribal member for one time per capita payments. For
purposes of determining eligibility for receiving a per capita payment
under any Tribal plan for the use and distribution of the Little River
Band of Ottawa Indians' share of the Dockets 18-E, 58, and 364 Judgment
Funds, ``qualified Tribal member'' shall mean any individual who has
applied for enrollment before 12:00 a.m. (midnight), Friday, January
30, 1998, and is duly enrolled in the Little River Band of Ottawa
Indians in accordance with Article III of the interim Constitution and
the Tribal Ordinance No. #94-1018-01 or Tribal Ordinance No. 97-200-01.
In order for any duly enrolled Tribal member to be entitled to the
one time per capita payment, the member's application for enrollment
must be received at the Tribal offices before 12:00 a.m. (midnight),
Friday, January 30, 1998. If an applicant who timely files his/her
application is denied enrollment and fails to appeal the decision, that
person will lose his/her right to the one time per capita payment if
he/she reapplies and becomes a duly enrolled member at a later date.
All persons eligible for the one time per capita payments must be
living as of the effective date of this plan. Any person who has
received a distribution from another tribe pursuant to Dockets 18-E,
58, and 364 of the Indian Claims Commission shall not be eligible to
receive the one time per capita payments from the Little River Band of
Ottawa Indians.
1.06. Minor qualified tribal member for one time per capita
payments. A minor qualified Tribal member for purposes of determining
eligibility must fulfill all of the ``qualified tribal member''
requirements in Section 1.05 and must be under the age of 18 years as
of the effective date of this plan.
1.07. Incompetent qualified Tribal member eligible for one time per
capita payments. An incompetent qualified Tribal member for purposes of
determining eligibility must fulfill all of the ``qualified tribal
member'' requirements in Section 1.05 and must: (1) be declared
incompetent by a court of competent jurisdiction; and, (2) have his/her
legal guardian inform the Tribal Registrar in writing of the person's
legal incompetence and provide evidence that he/she is the
incompetent's legal guardian prior to the effective date of the plan.
1.08. Incarcerated qualified Tribal member eligible for one time
per capita payments. An incarcerated qualified
[[Page 67129]]
Tribal member for purposes of determining eligibility for the one time
per capita payments must fulfill all of the requirements in Section
1.05 and must: (1) inform the Tribal Registrar in writing of his/her
incarceration and provide evidence that he/she is incarcerated prior to
the effective date of the plan; and, (2) must notify the Tribal
Registrar and execute a Power of Attorney, prior to the effective date,
if he/she wishes to elect to have his/her per capita money held in
trust until he/she is released from confinement. The Tribal Council
shall develop appropriate forms and procedures to implement this
Section.
1.09. Qualified Tribal Members Eligible to Vote on Judgment Funds
Proposals. Each member who is duly enrolled in the Little River Band of
Ottawa Indians by January 14, 1998, and has attained the minimum age of
18 years by January 14, 1998, shall be eligible to vote in the election
of the judgment funds proposals, with the exception of incompetent
persons who will not be allowed to vote, nor will any person be allowed
to vote on his/her behalf. An incarcerated person shall be allowed to
vote.
Section 2. Disbursement of Judgment Funds Following Effective Date
2.01. The Secretary shall disburse the Tribe's share of the
judgment funds not later than 30 days after the effective date in
accordance with Section 105 of the Michigan Indian Land Claims
Settlement Act.
2.02. Notwithstanding any other provision of law, the United States
shall have no trust responsibility for the investment, supervision,
administration, or expenditure of any portion of the judgment funds,
including the per capita payment aspects of the plan, after such funds
are disbursed to the Tribe.
2.03. Within 10 business days after receipt of the Tribe's share of
the judgment funds, the Tribal Council shall arrange to have eighty
(80%) percent of the judgment funds deposited in a segregated account
for the purpose of implementing the per capita payment aspects of the
plan described in Section 3. Within 10 business days after receipt of
the Tribe's share of the judgment funds, the Tribal Council shall
arrange to have the twenty (20%) percent of the judgment funds
programmed for land acquisition deposited in a segregated account for
the purpose of implementing the land acquisition provisions described
in Sections 4 and 5 of this plan.
Section 3. One Time Per Capita Payments to all Tribal Members
3.01. As compensation to the members of the Little River Band of
Ottawa Indians for the delay in distribution of the judgment fund and
to advance the current personal health, safety and welfare of qualified
Tribal members, eighty (80%) percent of the Little River Band of Ottawa
Indians' share of the judgment fund, shall be divided into equal shares
and distributed to all qualified Tribal members, including minor
qualified members, adult qualified members who are legally incompetent,
and incarcerated members.
3.02. How per capita payment will be made. In order to fairly
compensate all members of the Little River Band of Ottawa Indians, the
per capita payment may be made in two payments. The first payment will
be based on the completion of two separate rolls, which will be
completed within 30 days after the effective date of this plan. One
roll will list each duly enrolled qualified member. The second roll
will list each applicant who filed his/her application by 12:00 a.m.
(midnight), Friday, January 30, 1998, whose application is still
pending. The number of persons on these two rolls will be added
together and divided into the total per capita amount, which will equal
the amount of the first check that each duly enrolled member will
receive. The balance remaining, if any, after all eligible applications
have been processed and the appeals time has run shall be divided by
the total number of qualified tribal members enrolled from the two
rolls described above and distributed to such qualified tribal members
in a second payment. A more detailed explanation of this process is
outlined in Appendix 1.
3.03. (a) In the event that a member of the Little River Band of
Ottawa Indians, who is eligible for payment under this section, should
die after the effective date of this plan and prior to the one time
payment distribution, that individual's one time payment shall be
provided to the member's heirs at law.
(b) In the event that a minor, incompetent or incarcerated person
should die while his/her money is in trust, that money shall be
distributed to the member's heirs at law.
3.04. Establishment of Trust Accounts for Minor and Incompetent
Tribal Members. In order to provide for the current and future safety
and well being of qualified Tribal members under this section who are
minors and fulfill the requirements of Section 1.06, have been declared
incompetent by a court of competent jurisdiction and whose legal
guardian has fulfilled the requirements of Section 1.07, and
incarcerated individuals who have fulfilled the requirements of Section
1.08, the per capita benefit for such qualified tribal members shall be
placed in a private trust account by the Tribal Council, and:
(a) The trust shall have segregated accounts for each qualified
minor, incompetent, and incarcerated, members based on his/her per
capita share, and
(b) The trust agreement shall specifically provide that the
investment policy to be followed is that of preserving the trust corpus
and of obtaining the highest interest rates current money markets can
safely provide. The trust agreement must further provide that maturity
dates of investments cannot exceed the period of the trust and that
only the following types of investment shall be made: United States
Treasury obligations; Federal agency obligations; repurchase/resell
agreements; United States Treasury bills; Bankers' acceptance, provided
the assets of the issuing bank exceed $1 billion or the issuing bank
pledges full collateral; Certificates of deposit, provided the assets
of the issuing bank exceed $1 billion or the issuing bank pledges full
collateral; Commercial paper, provided it is rated prime-2 by Moody or
A-2 by Standard and Poor or is obligation of a company with outstanding
unsecured debt rated AA by Standard and Poor.
3.05. Release of funds regarding legal incompetents.
(a) Upon the petition of the legal guardian of the beneficiary,
trust assets shall be distributed to the beneficiary in any amounts as
the Tribal Court determines appropriate for the beneficiary's health,
welfare or economic security, including his/her support, maintenance,
and education.
(b) The Tribal Court may require that the petitioning guardian
submit receipts of expenditures made on behalf of the beneficiary
before any disbursements are made, and shall require that the
petitioning guardian account to the Tribal Court or trustee for any
expenditures made from distributions from the trust or trusts.
(c) The Tribal Court may, at its discretion, authorize the trustee
or trustees to establish a regular monthly distribution from the trust
for the beneficiary.
3.06. Release of funds regarding minors.
(a) All assets accumulated in the trust for the benefit of a minor
qualified tribal member shall be distributed at such time as the
beneficiary reaches the age
[[Page 67130]]
of 18, upon application of the beneficiary, providing sufficient
evidence of eligibility, approved by the Tribal Council.
(b) Prior to the time the beneficiary reaches the age of (18), and
upon the petition of a parent(s), legal guardian(s) of the minor, or an
emancipated minor, the Tribal Court shall make distributions from the
trusts in such amounts as deemed necessary in the best interests of the
minor, for the minor's support, health, education, or welfare to the
parents, legal guardians, fiduciaries, emancipated minor, or to persons
having the control and custody of the minor.
(c) The Tribal Court may require that the petitioning parent or
legal guardian submit receipts of expenditures made on behalf of the
minor before any disbursements are made, and shall require that the
petitioning parent or guardian provide an accounting to the Tribal
Court or trustee for any expenditures made from distributions from the
trust or trusts.
3.07. Release of funds to incarcerated person. Upon the petition of
an incarcerated person, trust assets shall be distributed to such
incarcerated person during his/her incarceration in any amounts as the
Tribal Court determines appropriate for such incarcerated person's
health, welfare or economic security, or that of such member's family,
including support, maintenance, and education.
3.08. The interest of each beneficiary shall be accounted for
separately by the trustee, and a trust account statement shall be
available at least semiannually to the parent or legal guardian of the
beneficiary.
3.09. In order to further the policies and goals underlying the
contribution of per capita benefits into trust for minors, legally
incompetent persons, and incarcerated persons, it is the intent of the
Tribal Council to seek a private letter ruling from the Internal
Revenue Service regarding the tax treatment of income earned on the
trust benefits concerning the deferred per capita payments to minors,
legally incompetent persons, and incarcerated persons.
3.10. The Little River Band of Ottawa Indians shall notify the
member if any part of the payments are subject to Federal income
taxation at such time as the benefits are paid to the member from the
trust, or distributed to the member pursuant to a deferred annual
payment distribution plan consistent with any private letter ruling
from the Internal Revenue Service, and make any withholding of income
tax from and reporting of such payments as may be required under the
Internal Revenue Code.
3.11. Except for the members for whom per capita payments are being
placed in trusts, the per capita payments for any qualified tribal
member shall be mailed to the last known address of the member on file
with the Little River Band of Ottawa Indians' Tribal Registrar. The
burden of registration with the Office of the Tribal Registrar is with
the member to ensure that the Tribal Registrar has the member's correct
and current address. Per capita payments returned to the Little River
Band as undeliverable shall be maintained by the Little River Band and
deposited into an interest-bearing escrow account. The member shall
have 365 days to claim the returned payment. If the returned benefits
are not claimed within that time period, the benefits shall revert back
to the Little River Band of Ottawa Indians and shall be deposited in
the Reservation Restoration Trust established in Section 4 of this
Plan.
Section 4. Allocation for Land Acquisition
4.01. From the twenty percent (20%) of the Little River Band of
Ottawa Indians' share of the judgment funds reserved for Tribal
purposes, the sum of $1,500,000 shall be allocated for the acquisition
of land to increase tribal land holdings or to pay the principal
balance of loans owing on properties owned by the Tribal government.
The Tribal Council shall use the funds allocated under this section for
the acquisition of specific properties or for the purposes identified
in the Tribe's Reservation Restoration Plan--Phase I (adopted February
9, 1997), and shall give priority to acquisition of lands for economic
development purposes or to pay the principal balance and any accrued
interest on loans owing on such properties. If funds are available by
May 1, 1999, Tribal Council shall also purchase the properties
described in Exhibit 2-A of Appendix C of the Ludington Pumped Storage
Project Settlement Agreement--Courts and Non-FERC Agencies, a copy of
which is attached and incorporated herein by reference. If the options
described above have expired, the Tribal Council shall give priority to
the acquisition of lands for economic development purposes and for the
development of Tribal Housing and Community Facilities. Upon acquiring
any land, the Tribal Council may sell or exchange such lands for equal
value, or may request that the United States hold the land in trust for
the Little River Band of Ottawa Indians.
Section 5. Reservation Restoration Trust Fund
5.01. The Tribal Council shall establish an irrevocable,
nonexpendable trust to be known as the ``Reservation Restoration Trust
Fund.'' In order to promote the accomplishment of the goals defined in
the Little River Band of Ottawa Indians' Reservation Restoration Plan,
the remaining balance in the Little River Band of Ottawa Indians' share
of the judgment fund following allocation of the one time per capita
payments to all members and the Initial Allocation for Land Acquisition
shall be placed in the ``Reservation Restoration Trust Fund''.
5.02. Investment. Monies paid into the Reservation Restoration
Trust Fund pursuant to this section, as well as income from investment,
shall be invested in high quality corporate, government, or government
agency bonds, including commercial or financial company paper, which is
rated in one of the two highest ratings by a nationally recognized
rating agency; and time deposits or repurchase agreements with any bank
or trust company organized under the laws of any state of the United
States, or national banking association, provided that such time
deposits or repurchase agreements do not exceed at any one time in the
aggregate lot of the total of the capital and surplus of such bank or
trust company or national banking association, and such bank or trust
company or national banking association has a combined capital and
surplus of at least $15,000,000.
5.03. Not later than 60 days after receipt of the funds distributed
to the Little River Band of Ottawa Indians pursuant to this Act, the
Tribal Council shall deposit into the Reservation Restoration Trust
Fund the principal, which shall consist of:
(a) The initial portion of the judgment funds described above;
(b) Such other funds which the Tribal Council chooses to add to
the Reservation Restoration Trust Fund.
5.04. The Tribal Council shall be the trustee of the Reservation
Restoration Trust Fund and shall administer the Reservation Restoration
Trust Fund in accordance with this section. The Tribal Council may
retain 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 accounts of the trust and charged against
earnings of the current fiscal year.
5.05. Ninety percent of the earnings generated by the Reservation
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Restoration Trust Fund may be used annually and shall be used
exclusively for the acquisition of specific properties, or for the
purposes, identified in the Tribe's Reservation Restoration Plan. There
shall be an annual review of the plan to update it for purposes of
identifying the priorities of properties in consultation with the Land
Acquisition Committee. Upon acquiring any land, the Tribal Council may
request that the United States hold the land in trust for the Little
River Band of Ottawa Indians. The remaining earnings, after payment to
the trust manager and the independent certified public accountant,
shall be added to the principal of the Reservation Restoration Trust
Fund.
5.06. The Tribal Council shall maintain the Reservation Restoration
Fund on an annual basis, which includes:
(a) Maintaining ten percent (10%) of the annual earnings
generated by the Reservation Restoration Trust Fund, after payments
to the trust manager and independent certified public accountant in
the Reservation Restoration Fund;
(b) Using any portion of the ninety percent of the earnings that
was not used in one year, in any subsequent year thereafter; and,
(c) Depositing any other funds which the Tribal Council chooses
to add to the Reservation Restoration Trust Fund.
5.07. The principal of the Reservation Restoration Trust Fund shall
not be expended for any purpose, including but not limited to, per
capita payments to members of the Little River Band of Ottawa Indians.
5.08. The Reservation Restoration Trust Fund 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 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 Little River
Band of Ottawa Indians.
5.09. Notwithstanding any other provision of law, the approval of
the United States of any payment from the Reservation Restoration Trust
Fund shall not be required and the United States shall have no trust
responsibility for the investment, supervision, administration, or
expenditure of funds from the Reservation Restoration Trust Fund.
Section 6.Tribal Sovereign Immunity
6.01. Nothing in this plan shall provide, or be interpreted to
provide, a waiver of the sovereign immunity from suit of the Little
River Band of Ottawa Indians or any of its governmental officers and/or
agents.
6.02. Nothing in this plan shall create a duty of financial
obligation on the part of the Little River Band of Ottawa Indians or
any of its officers and/or agents to provide judgment fund distribution
payments to an individual who alleges that he/she did not receive a per
capita distribution check; provided, however, that the Little River
Band of Ottawa Indians must show:
(a) The individual's name does not appear on any of the rolls
authorized under this plan; or
(b) The individual's name: (i) appeared on one of the rolls
authorized under this plan; and, (ii) a copy of the per capita check
is returned by the Tribal Administration as proof of distribution to
the last known address of the individual entitled to a per capita
check.
This notice is published in exercise of authority delegated to the
Assistant Secretary--Indian Affairs under 25 U.S.C. 2 and 9 and 209 DM
8.
Dated: November 19, 1998.
Kevin Gover,
Assistant Secretary--Indian Affairs.
[FR Doc. 98-32301 Filed 12-3-98; 8:45 am]
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