LEGISLATIVE HISTORY OF THE INDIAN FINANCE ACT (By Lillian V. Peters, Research Assistant, T. & H. Central Council, SOURCES OF INFORMATION PUBLIC LAW 93-262-INDIAN FINANCING ACT OF 1974, APRIL 12, 1974 U.S. Code Congressional and Administrative News House Report No. 93-907, 2nd Sessions (1974) at 2876—a good brief summary of the legislative history of this Act. (approx. 8 pages) Weekly Compilation of Presidential Documents President Nixon's Indian Message of: 1. July 13, 1970-Vol. 6, No. 27. The essence of title I & II, of the Act outlined. 2. April 13, 1974-Vol. 10, No. 16. President's statement upon signing the Indian Finance Act into law. Congressional Record 1. Vol. 120 (1974): a. March 18-considered and passed House, amended in lieu of HR 6371. pp. H 6964-69. b. March 27-Senate agreed to House amendment with an amendment. pp. H 8386-91. c. April 1-House concurred in Senate amendment (p. H 2344). 2. Vol. 119 (1973): a. July 28-considered & passed Senate. Hearings and Reports 1. 1972 CIS/Annual Senate Hearings: August 1, 1972—Microfiche No. S441-86. 2. 1973 CIS/Annual: Senate Hearings-S441-48. Senate Report (No. 93-348)-S443-20. 3. 1974 CIS/Annual: House Hearings: October 12, 1973-H441-7. House Report (No. 93–907 accompanying H.R. 6371)—H443-8. REPORT ON THE LEGISLATIVE HISTORY OF THE INDIAN FINANCE ACT Public Law 93-262, the Indian Finance Act, became the second of President Nixon's seven Indian measures to be enacted. President Nixon first introduced the "Indian Financing Act of 1970" to Congress in his Indian Message of July 8, 1970: "As I said in September of 1968, it is critically important that the Federal Government support and encourage efforts which help Indians develop their own economic infrastructure. To that end, I am proposing the Indian Financing Act of 1970" (The essence of Titles I & II of the act are found in the message). The President's Financing Act is encompassed in HR 18571 and S 4116. In order to gather by-partisan support for his bill, the President requested that both democrats and republicans introduce the legislation. To enhance the passage of his bill, the President sought the support of leading men on both the House and Senate Interior and Insular Affairs Committee. The leading republican John Saylor of the House Interior and Insular Affairs Committee formally introduced HR 18571 on July 21, 1970, and Chairman Jackson of the Senate Interior and Insular Affairs Committee introduced S 4416 on July 23, 1970. Although the bills had the support of powerful men on both committees and, in addition, the backing of leading representatives from the Indian Affairs Subcommittee, the bills never came up for hearings primarily because the Subcommittees were preoccupied with other legislation which they regarded as more urgent (such as the Alaska Native Land Claims Act). Consequently, these two bills H.R. 18571 and S. 4116 died in their respective Houses. In 1971, the President again initiated the action for an Indian Finance Act. Senator Jackson and Senator Abourezk introduced the Administration's proposal-S. 1013 the "Indian Financing Program of 1971" and S. 1015, the "Indian Business Development Program Act." But again, both the Senate and House Subcommittees agenda was too busy with other legislation to hold hearings on these bills. In 1972, however, the Senate schedules hearings on S. 2036 "Indian Finance Act of 1971" and S. 2237 "Indian Business Development Program Act." The Department of Interior, on behalf of the Administration, submitted S. 2036 to Congress April 13, 1971 and Senator Byrd (for Mr. Jackson, himself, and Mr. Allot) introduced the bill to the Senate June 9, 1971. The Department of Interior submitted S. 2237 to Congress July 12, 1971, at which time, Mr. Jackson introduced the bill to the Senate. Both bills were read twice, referred to the Committee on Interior and Insular Affairs, and then referred to the Senate Indian Affairs Subcommittee. August 1, 1972, the Subcommittee held hearings on both bills. During this hearing, the Senators discussed the possibility of combining the two programs (the Finance Program and the Indian Business Development Program) under one piece of legislation. The Assistant Secretary of the Interior, for Public Land Management Mr. Loesch, representing the Administrations view, testified against the adoption of such a union between the two programs. Aside from Mr. Loesch's testimony, a few Native leaders testified about the impact the legislation would have on their tribes. The hearing ended with a report on the Secretary of Interior's letter supporting the passage of this legislation. But with no action taken on the House side, the bills died in the 92nd Congress. In 1973, the Administration introduced legislation pertaining to these two programs, S. 1341 the "Indian Finance Act of 1971". Similar legislation H.R. 5371, H.R. 6493, H.R. 9843, and H.R. 10562, was also introduced that Congress. With the increased interest among more representatives, the subcommittees in both Houses finally received the necessary impetus for serious consideration of the legislation. In the Senate, the subcommittee on May 31, 1973 held hearings on S. 1341, S. 1013 ("the Indian Finance Program of 1971), and S. 1015 "The Indian Business Development Program). Because the language in S. 1341 was unclear in several places, the Subcommittee voted to delete the language of S. 1341 after the enacting clause and insert in lieu thereof the provisions of S. 1013 and S. 1015, and ordered the bill reported to the full Committee on Jun 11, 1973. The full Committee approved S. 1341, as amended by the subcommittee with some further amendments on July 20, 1973. On July 28, Mr. Mansfield asked unanimous consent that the Senate consider S. 1341, calender number 331. There being no objections, the Senate considered the bill. After an amendment had been agreed to, the bill was ordered to be engrossed for a third reading, read the third time, and passed. The House proved to be not as successful as the Senate. On October 12, 1973 the House Subcommittee on Indian Affairs held a hearing on the various proposals for an Indian Finance Act: H.R. 6371, H.R. 6493, H.R. 9843, H.R. 10562 and S. 1341. During the hearing, John Kyle the Assistant Secretary of the Interior for Congressional and Public Affairs spoke favorably on the bill in behalf of the Administration. Various Native leaders testified on the impact the legislation would have on their tribes (among these are the key testimonies of Clarence Jackson, Ray Paddock and Robert Willard). The full Committee on Interior & Insular Affairs did not hold any hearings on the proposed legislation. Again the attempts to push the legislation through Congress came to a standstill. But in 1974, the House Subcommittee proved successful in scheduling a hearing with the full Committee. March 13, 1971 the Committee favorably reported H.R. 6371 to the Committee of the Whole House on the State of the Union. Mr. Meeds, Chairman of the House Indian Affairs Subcommittee moved that H.R. 6371 be brought to the attention of the House floor. He yielded himself time to explain the various amendments the Subcommittee had proposed i.e. the substitution of the language with the adoption of H.R. 9843 language (which is identical to S. 1341 as passed by the Senate) and the addition of a new title providing management and technical assistance to the economic enterprises receiving benefits from the Act. In addition, Mr. Haley, Mr. Taylor, Mr. Regula, and Mr. Zwach also presented supportive statements. The Speaker then acknowledged Mr. Meeds request for consideration of the bill as amended, and H.R. 6371 was passed. Mr. Meeds presented an amendment which was agreed to and a motion to reconsider was laid on the table. March 27, 1974, Mr. Mansfield brought S. 1341 to the attention of the Senate. The Senate favorably considered the message from the House, i.e. the House amendment to the bill. Mr. Jackson, after urging his colleagues to favorably pass on the legislation, moved that the Senate concur with the amendment of the House. The Senate did so, but also added a small amendment. On April 1, 1974, Mr. Meeds asked the House for unanimous consent to concur in the Senate amendment. The Senate amendment to the House amendment was concurred in and a motion to reconsider was laid on the table. The Indian Finance Legislation had finally made it through both Houses. On April 13, 1974, President Nixon signed the Indian Finance Act into law. WEEKLY COMPILATION OF PRESIDENTIAL DOCUMENTS JULY 13, 1970 (VOL 6, NO. 27) The president in his July 8, 1970 message called for more economic development planning by Indian tribes and asked the secretary to work toward that end: As we move ahead in this important work, it is essential that the Indian people continue to lead the way by participating in policy development to the geatest possible degree. (p. 904) Economic self-determination: As I said in September of 1968, it is critically important that the Federal government support and encourage efforts which help Indians develop their own economic infrastructure, to that end, I am proposing the "Indian Finance Act of 1970." This quote is also found in the President's letter to Honorable Carl Albert, Speaker of the House of Representatives. PROPOSED LEGISLATION (PP. 897-898) Points made concerning self-determination : Empower a tribe or any other Indian community to take over the control or operation of Federally-funded and administrative programs in the Department of the Interior & HEW whenever tribal council or Indian community governing group voted to do so. Those cases where an impasse arises over who should administer (Feds or Indians), final determination should rest with Indian community. Indians given the right to select specified portion of the program. If they choose, they can give administrative responsibility back to the Fed government. Guarantees the right of Indians to contract for control or operation of Fed programs. PRESIDENT'S EXECUTIVE ORDER 11635 The 1970 Presidential message states: Self-determination will become reality when an era is initiated in which the Indian future is determined by Indian act and Indian decisions. WEEKLY COMPILATION OF PRESIDENTIAL DOCUMENTS, JULY 13, 1970 * 5. Economic Development Legislation Economic deprivation is among the most serious of Indian problems. Unemployment among Indians is ten times the national average; the unemployment rate runs as high as 80 percent on some of the poorest reservations. Eighty percent of reservation Indians have an income which falls below the poverty line; the average annual income for such families is only $1,500. As I said in September of 1968, it is critically important that the Federal government support and encourage efforts which help Indians develop their own economic infrastructure. To that end, I am proposing the "Indian Financing Act of 1970." This act would do two things: 1. It would broaden the existing Revolving Loan Fund, which loans money for Indian economic development projects. I am asking that the authorization for this fund be increased from approximately $25 million to $75 million. 2. It would provide additional incentives in the form of loan guarantees, loan insurance and interest subsidies to encourage private lenders to loan more money for Indian economic projects. An aggregate amount of $200 million would be authorized for loan guarantee and loan insurance purposes. I also urge that legislation be enacted which would permit any tribe which chooses to do so to enter into leases of its land for up to 99 years. Indian people now own over 50 million acres of land that are held in trust by the Federal government. In order to compete in attracting investment capital for commerical, industrial and recreational development of these lands, it is essential that the tribes be able to offer long-term leases. Long-term leasing is preferable to selling such property since it enables tribes to preserve the trust ownership of their reservation homelands. But existing law limits the length of time for which many tribes can enter into such leases. Moreover, when long-term leasing is allowed, it has been granted by Congress on a case-by-case basis, a policy which again reflects a deep-rooted pattern of paternalism. The twenty reservations which have already been given authority for long-term leasing have realized important benefits from that privilege and this opportunity should now be extended to all Indian tribes. Economic planning is another area where our efforts can be significantly improved. The comprehensive economic development plans that have been created by both the Pima-Maricopa and the Zuni Tribes provide outstanding examples of interagency cooperation in fostering Indian economic growth. The Zuni Plan, for example, extends for at least five years and involves a total of $55 million from the Departments of Interior, Housing and Urban Development, and Health, Education and Welfare and from the Office of Economic Opportunity and the Economic Development Administration. I am directing the Secretary of the Interior to play an active role in coordinating additional projects of this kind. CONGRESSIONAL RECORD 1. March 18, 1974 (Vol. 120), House considered and passed the Finance Act, amended in lieu of H.R. 6371. Interesting quotes relating to self-determination in economic concerns: "In short, Mr. Speaker, H.R. 6371 is a bill which is designed to help the Indian people help themselves. It is a comprehensive effort to help our original Americans secure the financial assistance which they need in order to develop the economic security which they deserve." Mr. Zwach p. 6967: "This bill is not only a beginning step in the strengthening of our native American's self-determination in their economic future 2. March 27, 1974 (Vol. 120), Senate agreed to House amendment with an amendment. Quote pertaining to the purpose of the act: Mr. Jackson p. 8388: "Mr. President, the purpose of this measure is to provide capital on a reimbursable basis to help develope and utilize Indian resources, both physical and human, to a point where the Indians will fully exercise responsibility for the utilization and management of their own resources and where they will enjoy a standard of living from their own productive efforts comparable to that enjoyed by non-Indians in neighboring communities." S. 4116 LEGISLATION INTRODUCED IN 1970 91st Congress, 2nd Session. In the Senate, July 23, 1970 Mr. Jackson (for himself, Mr. Allot, Mr. Fannin, and Mr. Hansen) (by request) introduced S. 4116 which was read twice and referred to the Committee on Interior & Insular Affairs. (May be cited as the "Indian Financing Act of 1970." To provide for financing the economic development of Indians and Indian organizations, and for other purposes. |