[House Hearing, 112 Congress]
[From the U.S. Government Publishing Office]

H.R. 205, ``HEARTH ACT OF 2011''; & H.R. 2362 ``INDIAN TRIBAL TRADE
AND INVESTMENT DEMONSTRATION PROJECT ACT OF 2011''

=======================================================================

LEGISLATIVE HEARING

before the

SUBCOMMITTEE ON INDIAN AND
ALASKA NATIVE AFFAIRS

of the

COMMITTEE ON NATURAL RESOURCES
U.S. HOUSE OF REPRESENTATIVES

ONE HUNDRED TWELFTH CONGRESS

FIRST SESSION

__________

Thursday, November 3, 2011

__________

Serial No. 112-80

__________

Printed for the use of the Committee on Natural Resources

Available via the World Wide Web: http://www.fdsys.gov
or
Committee address: http://naturalresources.house.gov

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COMMITTEE ON NATURAL RESOURCES

DOC HASTINGS, WA, Chairman
EDWARD J. MARKEY, MA, Ranking Democrat Member

Don Young, AK Dale E. Kildee, MI
John J. Duncan, Jr., TN Peter A. DeFazio, OR
Louie Gohmert, TX Eni F.H. Faleomavaega, AS
Rob Bishop, UT Frank Pallone, Jr., NJ
Doug Lamborn, CO Grace F. Napolitano, CA
Robert J. Wittman, VA Rush D. Holt, NJ
Paul C. Broun, GA Raul M. Grijalva, AZ
John Fleming, LA Madeleine Z. Bordallo, GU
Mike Coffman, CO Jim Costa, CA
Tom McClintock, CA Dan Boren, OK
Glenn Thompson, PA Gregorio Kilili Camacho Sablan,
Jeff Denham, CA CNMI
Dan Benishek, MI Martin Heinrich, NM
David Rivera, FL Ben Ray Lujan, NM
Jeff Duncan, SC John P. Sarbanes, MD
Scott R. Tipton, CO Betty Sutton, OH
Paul A. Gosar, AZ Niki Tsongas, MA
Raul R. Labrador, ID Pedro R. Pierluisi, PR
Kristi L. Noem, SD John Garamendi, CA
Steve Southerland II, FL Colleen W. Hanabusa, HI
Bill Flores, TX Vacancy
Andy Harris, MD
Jeffrey M. Landry, LA
Jon Runyan, NJ
Bill Johnson, OH
Mark Amodei, NV

Todd Young, Chief of Staff
Lisa Pittman, Chief Counsel
Jeffrey Duncan, Democrat Staff Director
David Watkins, Democrat Chief Counsel
------

SUBCOMMITTEE ON INDIAN AND ALASKA NATIVE AFFAIRS

DON YOUNG, AK, Chairman
DAN BOREN, OK, Ranking Democrat Member

Tom McClintock, CA Dale E. Kildee, MI
Jeff Denham, CA Eni F.H. Faleomavaega, AS
Dan Benishek, MI Ben Ray Lujan, NM
Paul A. Gosar, AZ Colleen W. Hanabusa, HI
Raul R. Labrador, ID Edward J. Markey, MA, ex officio
Kristi L. Noem, SD
Doc Hastings, WA, ex officio

------
CONTENTS

----------
Page

Hearing held on Thursday, November 3, 2011....................... 1

Statement of Members:
Boren, Hon. Dan, a Representative in Congress from the State
of Oklahoma................................................ 2
Prepared statement of.................................... 3
Markey, Hon. Edward J., a Representative in Congress from the
Commonwealth of Massachusetts, Statement submitted for the
record..................................................... 35
Young, Hon. Don, the Representative in Congress for the State
of Alaska.................................................. 2
Prepared statement of.................................... 2

Statement of Witnesses:
Berrey, Hon. John L., Chairman, Business Committee, Quapaw
Tribe of Oklahoma.......................................... 15
Prepared statement on H.R. 2362.......................... 16
Black, Hon. Michael S., Director, Bureau of Indian Affairs,
U.S. Department of the Interior............................ 10
Prepared statement on H.R. 205........................... 12
Prepared statement on H.R. 2362.......................... 13
Cole, Hon. Tom, a Representative in Congress from the State
of Oklahoma................................................ 6
Prepared statement on H.R. 2362.......................... 8
Heinrich, Hon. Martin, a Representative in Congress from the
State of New Mexico........................................ 4
Prepared statement on H.R. 205........................... 5
McCurdy, Hon. Lincoln, President, Turkish Coalition of
America, Inc............................................... 21
Prepared statement on H.R. 2362.......................... 22
Tortalita, Hon. Floyd, Vice-Chairman, National American
Indian Housing Council..................................... 17
Prepared statement on H.R. 205........................... 19

Additional materials supplied:
Tan, His Excellency Namik, Ambassador, Republic of Turkey,
Letter submitted for the record on H.R. 2362............... 36
Turkish American Chamber of Commerce and Industry, Letter
submitted for the record on H.R. 2362...................... 37

LEGISLATIVE HEARING ON H.R. 205, TO AMEND THE ACT TITLED ``AN ACT TO
AUTHORIZE THE LEASING OF RESTRICTED INDIAN LANDS FOR PUBLIC, RELIGIOUS,
EDUCATIONAL, RECREATIONAL, RESIDENTIAL, BUSINESS, AND OTHER PURPOSES
REQUIRING THE GRANT OF LONG-TERM LEASES,'' APPROVED AUGUST 9, 1955, TO
PROVIDE FOR INDIAN TRIBES TO ENTER INTO CERTAIN LEASES WITHOUT PRIOR
EXPRESS APPROVAL FROM THE SECRETARY OF THE INTERIOR. ``HEARTH ACT OF
2011''; AND H.R. 2362, TO FACILITATE ECONOMIC DEVELOPMENT BY INDIAN
TRIBES AND ENCOURAGE INVESTMENT BY TURKISH ENTERPRISES. ``INDIAN TRIBAL
TRADE AND INVESTMENT DEMONSTRATION PROJECT ACT OF 2011.''

----------

Thursday, November 3, 2011

U.S. House of Representatives

Subcommittee on Indian and Alaska Native Affairs

Committee on Natural Resources

Washington, D.C.

----------

The Subcommittee met, pursuant to call, at 2:54 p.m. in
Room 1324, Longworth House Office Building, Hon. Don Young
[Chairman of the Subcommittee] presiding.
Present: Representatives Young, Boren, Kildee,
Faleomavaega, and Lujan.
Also Present: Representative Heinrich.
Mr. Young. The Subcommittee will come to order. The
Chairman notes the presence of a quorum, which under Committee
Rule 3[c] is two Members. Thank you, Mr. Boren, for being here.
The Subcommittee on Indian and Alaska Native Affairs is
meeting today to hear testimony on H.R. 205, The HEARTH Act of
2011, and H.R. 2362, The Indian Tribal Trade and Investment
Demonstration Project Act of 2011.
Under Committee Rule 4[f], opening statements are limited
to the Chairman and Ranking Member of the Subcommittee so we
can hear from our witnesses more quickly. However, I ask
unanimous consent to include any other Members' opening
statements in the hearing record if submitted to the clerk by
the end of the day. Hearing no objection, so ordered.
I also ask unanimous consent that the gentleman from New
Mexico, Mr. Heinrich, be allowed to join us at the dais and
participate in the hearing. Without any objection, so ordered.

STATEMENT OF HON. DON YOUNG, A REPRESENTATIVE IN CONGRESS FROM
THE STATE OF ALASKA

Mr. Young. Over the years we continue to hear from tribes
that it can take months, in some cases years, to approve simple
lease agreements with the Bureau of Indian Affairs. These long
delays hurt the tribes' ability to spur economic development
and create jobs.
Both of these bills will help tribal governments cut
through the bureaucratic red tape and allow the tribes to lease
their lands without approval of the Secretary of the Interior,
pursuant to tribal regulations approved by the Secretary.
H.R. 205, entitled ``The HEARTH Act of 2011,'' amends the
long-term Indian leasing acts so tribes can lease their lands
for any non-mineral development; and H.R. 2362, ``The Indian
Tribal Trade and Investment Demonstration Project Act of
2011,'' creates a pilot project for tribes to participate in
economic business development with private entities from the
Republic of Turkey. Both bills are supported from Indian
country, and I look forward to hearing the testimony of the
witness.
If there is no objection, I would like to add the
Ambassador of the Republic of Turkey's letter in support of
H.R. 2362. I look forward to hearing from our witness, and I
now recognize the Ranking Member for five minutes for any
statement he may have.
[The prepared statement of Mr. Young follows:]

Statement of The Honorable Don Young, Chairman, Subcommittee on Indian
and Alaska Native Affairs, on H.R. 205 and H.R. 2362

The purpose of today's hearing is to hear testimony on H.R. 205, a
bill sponsored by Martin Heinrich and H.R. 2362, a bill introduced by
Tom Cole.
Over the years, we continue to hear from tribes that it can take
months and in some cases years to approve simple lease agreements at
the Bureau of Indian Affairs. These long delays hurt the tribe's
ability to spur economic development and create jobs. Both of these
bills will help tribal governments cut through the bureaucratic red
tape and allow the tribes to lease their lands without approval of the
Secretary of the Interior, pursuant to tribal regulations approved by
the Secretary.
H.R. 205, entitled the ``HEARTH Act of 2011,'' amends the Long Term
Indian Leasing Act, so that tribes can lease their lands for any non-
mineral development. And H.R. 2362, the ``Indian Tribal Trade and
Investment Demonstration Project Act of 2011,'' creates a pilot project
for tribes to participate in economic and business development with
private entities from the Republic of Turkey. Both bills have support
from Indian Country and I look forward to hearing the testimony from
our witnesses. If there is no objection, I would like to add the
Ambassador of the Republic of Turkey's letter in support of H.R. 2362.
______

STATEMENT OF HON. DAN BOREN, A REPRESENTATIVE IN CONGRESS FROM
THE STATE OF OKLAHOMA

Mr. Boren. Thank you, Mr. Chairman. Today the Subcommittee
meets to hear testimony on H.R. 205, introduced by Mr. Heinrich
and co-sponsored by 10 of my colleagues from both sides of the
aisle.
H.R. 205, better known as the HEARTH Act, would amend the
Indian Long-Term Leasing Act of 1955 to give tribes more
control over their lands. It authorizes sovereign tribes to
expedite the land-leasing procedure, encouraging investment and
self-sufficiency.
Tribes from across Indian country as well as major tribal
organizations, such as the National American Indian Housing
Council, have expressed their support for the HEARTH Act. There
are debilitating limitations of the Indian Long-Term Leasing
Act that must be addressed. The HEARTH Act is needed in order
to tackle, among other issues, the long delays currently
experienced for travel trust land-lease approvals. Allowing
tribes to make decisions about service leasing will curb these
delays.
I am proud to be a co-sponsor of this bill, and I look
forward to its passage in this Congress.
Also, my good friend, Mr. Cole--he is not here, he should
be here shortly--is here today to testify on his bill, H.R.
2362, the Indian Tribal Trade and Investment Demonstration
Project Act of 2011. Say that 10 times fast.
This bill adopts the tribal leasing authority under the
HEARTH Act and applies them specifically to an economic
development program with the Republic of Turkey. The bill
allows no more than six tribes to engage in trade with private
entities incorporated in the Republic of Turkey. It addresses,
as Mr. Cole states in his testimony, an archaic leasing system
in the hopes of encouraging this international partnership.
I look forward to hearing from Mr. Cole and the witnesses
here today on how important this important bill will positively
affect Indian country. As a co-sponsor of both bills, I look
forward to today's hearing as the first step forward in passing
this legislation.
Again, glad to see you, Mr. Heinrich. Mr. Cole should be
here any minute. And I yield back, Mr. Chairman.
[The prepared statement of Mr. Boren follows:]

Statement of The Honorable Dan Boren, Ranking Member, Subcommittee on
Indian and Alaska Native Affairs, on H.R. 205 and H.R. 2362

Thank you, Mr. Chairman.
Today the Subcommittee meets to hear testimony on H.R. 205,
introduced by Mr. Heinrich and co-sponsored by ten of my colleagues
from both sides of the aisle. H.R. 205, better known as the HEARTH Act,
would amend the Indian Long-Term Leasing Act of 1955 to give tribes
more control over their lands. It authorizes sovereign tribes to
expedite the land leasing procedure, encouraging investment and self-
sufficiency.
Tribes from across Indian country as well as major tribal
organizations such as the National American Indian Housing Council have
expressed their support for the HEARTH Act.
As tribes become more sophisticated in their management
capabilities, the limitations of the Indian Long-Term Leasing Act must
be addressed. The HEARTH Act is needed in order to tackle, among other
issues, the long delays currently experienced for tribal trust land
lease approvals. Allowing tribes to make decisions about surface
leasing will curb these delays. I am proud to be a co-sponsor of this
bill and look forward to its passage this Congress.
Also, my good friend Mr. Cole is here today to testify on his bill,
H.R. 2362, the Indian Tribal Trade and Investment Demonstration Project
of 2011. This bill adopts the tribal leasing authorities under the
HEARTH Act and applies them specifically to an economic development
program with the Republic of Turkey. The bill allows no more than six
tribes to engage in trade with private entities incorporated in the
Republic of Turkey. It addresses, as Mr. Cole states in his testimony,
an ``archaic leasing system'' in the hopes of encouraging this
international partnership.
I look forward to hearing from Mr. Cole and the witnesses here
today on how this important bill will positively affect Indian country.
As a co-sponsor of both bills, I look forward to today's hearing as
the first step toward passing this legislation. Welcome, Mr. Cole and
Mr. Heinrich, and welcome to our witnesses. I yield back.
______

Mr. Young. Thank you, gentlemen. And first let me apologize
to the witnesses for the delay in this hearing. I have no
control over the votes. If I did, we would run this thing a lot
faster, I can tell you that right now.
Mr. Cole is not present but should be here in a moment. But
we will go ahead with Mr. Heinrich. If you would like to
testify, Mr. Heinrich, you have five minutes.

STATEMENT OF HON. MARTIN HEINRICH, A REPRESENTATIVE IN CONGRESS
FROM THE STATE OF NEW MEXICO

Mr. Heinrich. Thank you, Chairman Young. And I want to
thank Ranking Member Boren as well, both of you, for holding
this hearing on H.R. 205.
I introduced the HEARTH Act after meeting with several
housing directors from New Mexico's Pueblos where I learned
about the owners' process for securing a long-term lease on
Trust land.
We all know how important home ownership is to healthy
communities, and the last thing the Federal Government should
do is to stand in the way of families who are ready and willing
to buy a house.
Native families buying a house go through the same process
as anyone else: They find a house they like, they work with
their lender to gain approval for a mortgage, and they make an
offer to the seller. But before these families can close on the
sale, they need approval from the Bureau of Indian Affairs to
lease the land that the house is built on. That approval can
take between six months and in some cases as long as two years,
an intolerable delay for most buyers. A seller is rarely able
to wait two years to sell their house, and banks are often
unable to hold a mortgage approval for anywhere near that long.
I know there are many families who would prefer to stay and
raise their children in the communities where their families
have lived for generations but instead have moved to nearby
cities because they want to own a home. Families shouldn't be
forced to make such an important decision based on how many
months or years it will take a Federal bureaucracy to approve a
mortgage on tribal land.
Similarly, many tribal communities lose out on commercial
investment because the process for securing a lease through the
BA can take so long. In these tough economic times, we
shouldn't be making it harder for businesses to develop on
tribal land.
The HEARTH Act would allow tribes to develop their own
leasing regulations and make leasing decisions on tribal Trust
at the tribal level rather than waiting for BIA approval. Under
the bill, tribes would submit their regulations to the
Secretary of the Interior for approval. Once the regulations
are approved, tribes would be authorized to make their own
decisions about how to lease their land in accordance with the
approved leases.
This process would be completely voluntary for tribes. A
tribe that chooses not to submit leasing regulations for
approval would continue under the current system of BIA lease
approval.
Many tribes already have a lease approval process through
their tribal government that approve land leases before they
are sent to the BIA. For those tribes that want the authority
and the responsibility for making final leasing decisions at
the tribal level, the HEARTH Act would give them the option of
doing so.
Our nation is home to a vast diversity of sovereign tribes,
and Federal policy should reflect that diversity. Some
questions have been raised regarding the minimum requirements
outlined in the bill for tribal leasing regulations. Over the
past few weeks, I have worked with Ranking Member Markey,
interested tribes and the National American Indian Housing
Council to agree on a requirement that tribal regulations meet
or exceed the requirements of the existing BIA regulations on
leases. This will allow tribes to take charge of their leasing
programs while ensuring that all tribal regulations meet a
consistent standard. And I hope that members of this
Subcommittee will support the addition of this provision.
The HEARTH Act will allow tribes to exercise greater
control over their lands, support self-determination and
eliminate bureaucratic delays that stand in the way of home
ownership and economic development in tribal communities. I
urge the Subcommittee's support for this important legislation.
And thank you, Mr. Chairman, for holding this hearing, and
thank you to the Subcommittee for consideration of this
legislation.
[The prepared statement of Mr. Heinrich follows:]

Statement of The Honorable Martin Heinrich, a Representative in
Congress from the State of New Mexico, on H.R. 205, The Helping
Expedite and Advance Responsible Tribal Homeownership Act of 2011

Thank you, Chairman Young and Ranking Member Boren, for holding
this hearing on H.R. 205.
I introduced the HEARTH Act after meeting with several housing
directors from New Mexico's pueblos where I learned about the onerous
process for securing a long-term lease on trust land. We all know how
important homeownership is to healthy communities, and the last thing
the federal government should do is stand in the way of families ready
and willing to buy a house.
Native families buying a house go through the same process as
anyone else: they find a house they like, work with their bank to gain
approval for a mortgage, and make an offer to the seller. But before
these families can close on the sale, they need approval from the
Bureau of Indian Affairs to lease the land the house is built on. That
approval can take between six months and two years--an intolerable
delay for most buyers. A seller is rarely able to wait two years to
sell their house, and banks are often unable to hold a mortgage
approval for that long.
I know there are many families who would prefer to stay and raise
their children in the communities where their families have lived for
generations--but instead have moved to nearby cities because they want
to own a home. Families shouldn't be forced to make such an important
decision based on how many months or years it will take a federal
bureaucracy to approve a mortgage on tribal land.
Similarly, many tribal communities lose out on commercial
investment because the process for securing a lease through the BIA
takes so long. In these tough economic times, we should not be making
it harder for business to develop on tribal land.
The HEARTH Act would allow tribes to develop their own leasing
regulations and make leasing decisions on the tribal level, rather than
waiting for BIA approval. Under the bill, tribes would submit their
regulations to the Secretary of the Interior for approval. Once the
regulations are approved, tribes would be authorized to make their own
decisions about how to lease their land, in accordance with the
approved leases.
This process would be completely voluntary for tribes--a tribe that
chooses not to submit leasing regulations for approval would continue
under the current system of BIA lease approval. Many tribes already
have a lease approval process through their tribal government that
approves land leases before they're sent to BIA. For those tribes that
want the authority and responsibility for making final leasing
decisions at the tribal level, the HEARTH Act would give them the
option of doing so. Our nation is home to a vast diversity of tribes,
and federal policy should reflect that diversity.
Some questions have been raised regarding the minimum requirements
outlined in the bill for tribal leasing regulations. Over the past few
weeks, I have worked with Ranking Member Markey, interested tribes, and
the National American Indian Housing Council, to agree on a requirement
that tribal regulations meet or exceed the requirements of the existing
BIA regulations on leases.
This will allow tribes to take charge of their leasing programs
while ensuring that all tribal regulations meet a consistent standard,
and I hope that the members of this subcommittee will support the
addition of this provision.
The HEARTH Act will allow tribes to exercise greater control over
their lands, support self-determination, and eliminate bureaucratic
delays that stand in the way of homeownership and economic development
in tribal communities. I urge this subcommittee's support for this
important legislation.
Thank you, Mr. Chairman, for holding this hearing, and thank you to
the subcommittee for your consideration of this bill.
______

Mr. Young. I thank the gentleman, Mr. Heinrich, for your
testimony. You were doing great until you said you have been
working with Mr. Markey, and I got a little bit concerned there
for a moment. But I checked with my staff, and apparently you
have been working with my staff too, so that is a good sign, I
want to tell you ahead of time.
Mr. Cole, I do apologize for letting a freshman go ahead of
you or at least a sophomore go ahead of you, but you weren't
here. And when you say you snooze, you lose. But, Mr. Chairman,
I want to thank you for coming before the Committee and
testifying on your bill.

STATEMENT OF HON. TOM COLE, A REPRESENTATIVE IN CONGRESS FROM
THE STATE OF OKLAHOMA

Mr. Cole. Thank you very much. Actually it was a wise
decision on your part, Mr. Chairman. I got here late and
without my testimony, which your staff is ably bringing me
right now, so unprepared as well as late.
Thank you again, Mr. Chairman. I appreciate very much this
hearing. Mr. Chairman, Ranking Member Boren, members of the
Committee, thank you for inviting me today to testify about my
bill, H.R. 2362, the Indian Tribal Trade and Investment
Demonstration Project Act of 2011, and my colleague,
Congressman Heinrich's bill, H.R. 205, the HEARTH Act.
Addressing ways to grow and sustain economic development on
tribal lands is an important goal that I continue to work with
members of this Committee. Statistically Indians are the most
impoverished group of people in our country and suffer from the
highest rates of unemployment. Enacting policies to facilitate
the growth of tribal economies is vital to help alleviate the
economic malaise facing Indian country.
The first and most basic step we should take toward this
goal is making it easier for Indian tribes to use their own
land. These bills will achieve that goal.
H.R. 2362 is designed to facilitate U.S. trade with Turkey
and to help economic development on tribal land. Currently
economic development on tribal land is hampered by a
restrictive and archaic leasing system. This system requires
multiple levels of review, including surveys and thorough
environmental reviews every time a lease is entered into. At
the end of that process, even simple leases that could be
concluded in as little as six days on private land can take up
to six years to conclude on Trust land.
It is fitting that the Indian Tribal Trade and Investment
Demonstration Project Act and the HEARTH Act are being
considered together today as my bill, H.R. 2362, is based on
provisions of the HEARTH Act. In fact, if the HEARTH Act is
enacted, provisions of H.R. 2362 would be facilitated.
As I am sure you will hear from other witnesses today, the
HEARTH Act will cut down on the bureaucracy involved with
leasing and developing land held in trust for Indian tribes.
These same provisions have applied to the Navajo Tribe for over
a decade and have helped that tribe with economic development.
H.R. 2362 is another in a long line of demonstration
projects being used to evolve Federal policy concerning tribes.
Over the years there has been a reluctance to implement new
policies which would affect all Federal tribes. Applying the
provisions of the HEARTH Act to only the Navajo Nation in 2000
is only one example. We can find other examples in other areas
of Indian policy, including self-governance.
Mr. Chairman, today you are considering two bills, one that
continues the demonstration model and one that seeks to benefit
all of Indian country. And while I strongly support my
legislation, I certainly hope that the HEARTH Act is quickly
enacted, extending the provisions found in H.R. 2362 to all
tribes.
Mr. Chairman, my bill would direct the Secretary of the
Interior to create a demonstration project for up to six tribes
or groups of tribes engaged in economic development projects
with companies based in Turkey. This legislation allows the
tribes in the program to develop their own guidelines for
leasing, including provisions to protect the environment.
The Secretary would then approve those guidelines, and the
tribes would be allowed to operate under those guidelines
without required Secretarial approval for every individual
release. Essentially tribes in the demonstration project would
then enjoy the same regulatory reforms proposed by the HEARTH
Act.
Although the Indian Tribal Trade and Investment
Demonstration Project would streamline leasing provisions to
take Secretarial approval out of every lease, the Secretary of
the Interior retains oversight over the project and retains the
power to enforce or cancel leases under the project if needed
to exercise the United States' Trust responsibility to the
tribes.
Additionally, as Federal land, Trust land remains subject
to the United States, the same environmental reviews that all
Federal lands are subject to. Neither my legislation nor the
HEARTH Act are attempts to get around environmental regulations
and exploit the land. Instead, they are efforts to bring
meaningful change to Indian tribes by allowing them to
efficiently develop their lands just like non-Indians are
allowed to do.
The single most frequently asked question people ask me
about H.R. 2362 is why Turkey. The answer to that is simple.
Turkey through their Trade Ministry has shown interest in
partnering with tribal economies. Turkey sent the first
delegation from a foreign government to the National Center for
American Indian Enterprise Development's annual reservation
economic summit, commonly known as the RES, in 2011.
People in Turkey have a genuine affinity toward American
Indians. Many Turks believe that Indians share a common
ancestry with the Turks dating back millennia. And whether you
hold this belief or not, there is no denying that many Turks
want to help Indians.
H.R. 2362 would capitalize on this affinity to strengthen
the ties with a key ally and close friend and help struggling
tribal economies at the same time. For a variety of reasons,
Mr. Chairman, there is a genuine interest in Native Americans
in many parts of the world.
It is my belief that if H.R. 2362 succeeds and innovative
legislation like the HEARTH Act is passed, other foreign
governments and corporations may well follow the example of
Turkey and invest in Indian country. That can only lead to good
things for Indian country while strengthening America's ties
with historic allies like Turkey. Progress for our most
challenged population, Native Americans, is a good thing for
our country and will have a positive impact for our image
around the world.
Mr. Chairman, thank you again for inviting me to testify
before your Committee on these important bills. These pieces of
legislation are vital to the development of tribal economies. I
encourage this Committee to favorably report both the Indian
Tribal Trade and Investment Demonstration Act and the HEARTH
Act and move them through the legislative process.
And with that, I thank you again, Mr. Chairman.
[The prepared statement of Mr. Cole follows:]

Statement of The Honorable Tom Cole, a Representative in Congress from
the State of Oklahoma, on H.R. 205 and H.R. 2362

Mr. Chairman, Ranking Member Boren, Members of the Committee: thank
you for inviting me here today to testify on my bill, H.R. 2362 the
Indian Tribal Trade and Investment Demonstration Project Act of 2011,
and my colleague Congressman Heinrich's bill H.R. 205 the HEARTH Act.
Addressing ways to grow and sustain economic development on Tribal
lands is an important goal that I continue to work on with members of
this committee. Statistically, Indians are the most impoverished group
of people in our country and suffer from the highest rates of
unemployment. Enacting policies to facilitate growth of Tribal
economies is vital to help alleviate the economic malaise facing
Indians. The first and most basic step we should take towards that goal
is making it easier for Indian Tribes to use their own land. These
bills will achieve that goal.
H.R. 2362 is designed to facilitate U.S. trade with Turkey and help
economic development on Tribal land. Currently, economic development on
Tribal land is hampered by a restrictive and archaic leasing system.
This system requires multiple levels of review including surveys and
thorough environmental reviews every time a lease is entered into. At
the end of that process, even simple leases that could be concluded in
as little as six days on private land can take up to six years to
conclude on trust land.
It is fitting that the Indian Tribal Trade and Investment
Demonstration Project Act and the HEARTH Act are being considered
together today, as my bill, H.R. 2362, is based on provisions of the
HEARTH Act. In fact, if the HEARTH Act is enacted, provisions of H.R.
2362 would be facilitated. As I am sure you will hear from other
witnesses today, the HEARTH Act will cut down on the bureaucracy
involved with leasing and developing land held in trust for Indian
Tribes. These same provisions have applied to the Navajo tribe for over
a decade, and have helped that tribe with economic development.
H.R. 2362 is another in a long line of demonstration projects being
used to evolve federal policy concerning Tribes. Over the years there
has been reluctance to implement new policies which would affect all
federal Tribes. Applying the provisions of the HEARTH act to only the
Navajo in 2000 is only one example. We can find other examples in other
areas of Indian policy including self governance. Mr. Chairman, today
you are considering two bills, one that continues the demonstration
model and one that seeks to benefit all Indian Tribes. While I strongly
support my legislation, I hope that the HEARTH Act is quickly enacted
extending the provisions found in H.R. 2362 to all tribes.
Mr. Chairman, my bill would direct the Secretary of Interior to
create a demonstration project for up to six tribes or groups of tribes
engaged in economic development projects with companies based in
Turkey. This legislation allows the Tribes in the program to develop
their own guidelines for leasing, including provisions to protect the
environment. The Secretary would then approve those guidelines and the
Tribes would be allowed to operate under those guidelines without
required Secretarial approval for every individual release.
Essentially, Tribes in the demonstration project would then enjoy the
same regulatory reforms proposed in the HEARTH Act.
Although the Indian Tribal Trade and Investment Demonstration
Project would streamline leasing provisions to take secretarial
approval out of every lease, the Secretary of Interior retains
oversight over the project and retains the power to enforce or cancel
leases under the project if needed to exercise the United States' trust
responsibility to tribes. Additionally, as federal land, trust land
remains subject to the same environmental reviews that all federal
lands are subject to. Neither my legislation, nor the HEARTH Act are
attempts to get around environmental regulations and exploit the land.
Instead they are efforts to bring meaningful change to Indian Tribes by
allowing them to efficiently develop their lands just like non-Indians
are allowed to.
The single most frequent question people ask me about H.R. 2362 is:
Why Turkey? The answer to that is simple. Turkey, through their trade
ministry, has shown interest in partnering with tribal economies.
Turkey sent the first delegation from a foreign government to the
National Center for American Indian Enterprise Development's annual
Reservation Economic Summit, commonly known as RES, in 2011. People in
Turkey have a genuine affinity towards American Indians. Many Turks
believe that Indians share a common ancestry with the Turks dating back
millennia. Whether you hold this belief or not, there is no denying
that many Turks want to help Indians. H.R. 2362 would capitalize on
this affinity to strengthen ties with a key ally and help struggling
tribal economies.
For a variety of reasons, Mr. Chairman, there is a genuine interest
in Native Americans in many parts of the world. It is my belief that if
H.R. 2362 succeeds and innovative legislation like the HEARTH Act is
passed, other foreign government and corporations may well follow the
example of Turkey and invest in Indian Country. That can only result in
good things for Indian Country while strengthening America's ties with
historic allies like Turkey. Progress for our most challenged
population--Native Americans--is a good thing for our country and will
have a positive impact for our image around the world.
Mr. Chairman, thank you again for inviting me to testify before
your committees on these important bills. These pieces of legislation
are vital to the development of Tribal economies. I encourage this
committee to favorably report both the Indian Tribal Trade and
Investment Demonstration Act and the HEARTH Act and move them through
the legislative process.
______

Mr. Young. Thank you, Congressman Cole. And I want to thank
both of the witnesses. These are two good pieces of legislation
strongly I am in support of. If I ever get my Empowerment Act,
it is going to include these for sure. But we are going to try
to move these bills separately and make sure that this is
allowed.
I have heard more complaints since I have been Chairman of
this Committee of the inactivity of the BIA in responding to
the wishes of a tribe and tribal land. I think that is
unfortunate. I know we are going to hear from the BIA, and I am
not picking on the BIA necessarily, but they haven't functioned
correctly. And I have not seen any progress in that arena since
I have been in this Congress as far as expediting the leasing
for homes, as you said, Mr. Heinrich, and the leasing, in the
HEARTH Act, leasing for industrial means.
I have no questions. Does the gentleman from Oklahoma have
any questions?
Mr. Boren. No questions, just a co-sponsor of both bills.
Hope we can get these, you know, passed very quickly, get them
to the House.
And I want to thank both Members. I know Mr. Heinrich has
been working on this for quite some time and that there have
been a lot of different changes in the legislation. He has been
working with staff. So we want to thank you for that also.
For Mr. Cole, in Oklahoma we have obviously a large Native
American population, but we also have a Turkish community. So I
think that is a great partnership, and we look forward to these
bills passing. Thank you.
Mr. Young. With that, you are excused. God, I would like to
be a schoolteacher again. Oh, boy.
Now we will call up the second panel. Mr. Michael Black,
Director of the Bureau of Indian Affairs; The Honorable John L.
Berrey, Business Committee, Quapaw Tribe of Oklahoma; The
Honorable Floyd Tortalita, Vice Chairman of the National
American Indian Housing Council; Mr. Lincoln McCurdy, President
of the Turkish Coalition of America.
And if you, Mr. Ranking Member, my good friend, Dan Boren,
would like to introduce your chairman of the tribe from
Oklahoma, you are quite welcome.
Mr. Boren. Thank you, Mr. Chairman. It is an honor to get
to introduce someone from my District, a fellow Oklahoman and a
good friend, Chairman John L. Berrey.
John Berrey is a member of both the Quapaw Tribe and the
Osage Nation. He serves as Chairman of the Quapaw Tribal
Business Committee and the Downstream Development Authority. He
is also a fourth-generation rancher on the family's original
allotment on the Osage Reservation located north of Tulsa,
Oklahoma.
Since graduating from the University of Arkansas--we can
forgive him for that, we will talk about that later; we have a
little football rivalry--with a degree in journalism in 1991,
Chairman Berrey has held a number of business positions,
including several with the Quapaw Tribe.
I can tell you there are great things going on in the
northeastern part of our District because of his leadership.
Our office and his administration have worked really well
together, and on top of that, he has become a great friend. So
we are glad to have you here and look forward to your
testimony.
Mr. Young. Good introduction. OK, Mr. Black, you are up
first.

STATEMENT OF MICHAEL S. BLACK, DIRECTOR,
BUREAU OF INDIAN AFFAIRS

Mr. Black. Good afternoon, Mr. Chairman, members of the
Subcommittee. My name is Mike Black, and I am Director of the
Bureau of Indian Affairs at the Department of the Interior.
Thank you for the opportunity to present the Department's views
on H.R. 205, the Helping Expedite and Advance Responsible
Tribal Home ownership Act, also known as the HEARTH Act.
This Administration continues to support tribal self-
determination and recognizes that tribal control over tribal
resources is intrinsic to this policy. The Department
understands that tribal homelands are essential to the health,
safety and welfare of the first Americans and that it is
important for Indian tribes to have the ability to determine
how their homelands will be utilized.
This is why the Department is in the process of revising
our own regulations governing leasing on Indian lands. Our
revisions will streamline the process by which leases over
Indian lands are approved, thereby promoting home ownership,
economic development and renewable energy development on tribal
lands.
H.R. 205 is consistent with this effort, and we are pleased
to strongly support this bill.
H.R. 205 would amend certain Sections of 25 U.S.C.
Sec. 415, the Indian Long-Term Leasing Act, and would restore
tribal authority to govern leasing on tribal lands for those
tribes that wish to exercise that authority.
Under H.R. 205, willing tribes would initially submit their
own leasing regulations to the Secretary of the Interior for
approval. Following Secretarial approval of such leasing
regulations, tribal governments would process leases for tribal
Trust land at the tribal level pursuant to their own laws,
without a requirement for further approval from the Secretary.
This has the potential to significantly reduce the time it
takes to approve leases for homes and small businesses. H.R.
205 also ensures that the Department will retain the authority
and responsibility to fulfill its trust obligation to protect
tribal Trust lands through the enforcement or cancellation of
leases approved under tribal regulations or the recision of
Secretarial approval of tribal regulations where appropriate.
The Department anticipates that H.R. 205 will ultimately
reduce the costs of implementing tribal leasing programs for
the Federal Government by allowing willing tribes to assume
control of leasing over their own tribal lands.
By increasing efficiency in the implementation of tribal
leasing programs, H.R. 205 will go a great distance in
promoting home ownership, economic development and renewable
energy development. Again, the Department strongly supports
H.R. 205, and we look forward to working with the Subcommittee
on continued support of Indian tribes.
As for H.R. 2362, the Indian Tribal Trade and Investment
Demonstration Project Act of 2011--and no, I can't say that
three times fast--would facilitate economic development by
Indian tribes and encourage investment by Turkish enterprises.
The Department supports the principles embodied by H.R.
2362, which would authorize a pilot collaboration between
selected Indian tribes and tribal consortia and Turkish
business enterprises. The bill would also authorize the tribal
approval of leases entered into under the demonstration project
in the bill without the Secretary of the Interior's approval of
such leases when certain requirements have been met.
While the Department views the bill as a potential job
creator that would likely spur economic activity in Indian
country, the Department has several concerns with H.R. 2362 and
would be pleased to work with the Subcommittee staff to improve
language in the legislation.
While we support the concept of H.R. 2362, the Department
would like to inform the Subcommittee that the Bureau of Indian
Affairs already has several examples of leases between tribes
and foreign entities, which cover such economic activities as
rights-of-way and oil and gas development.
As stated earlier, the Department supports H.R. 205, the
HEARTH Act, which has many provisions in common with H.R. 2362.
The Department is not opposed to this proposed demonstration
project but believes that the passage of the HEARTH Act would
foster many of the same goals identified in H.R. 2362 on a
broader scale.
Some of the Department's concerns with H.R. 2362 are that
the term ``consortium'' is not defined in the bill. The
Department would find it useful to provide a definition along
with more information on how these types of consortium leases
would work.
Since the bill provides for the development of tribal
regulations as one requirement for non-Secretarial approval for
certain leases under H.R. 2362, there does not appear to be a
provision that would allow for consortium regulations that
would provide the same exception to non-Secretarial approval of
such consortium leases.
We are also concerned with Section 3 of H.R. 2362. This
Section provides only one year for the tribal approval of
tribal leases. This one-year requirement would include
submission of the tribal leasing regulations for Secretarial
approval, drafting, consulting arm and approving departmental
leasing regulations for the purposes in H.R. 2362, the
execution of leases and the review of the leases' environmental
consequences. In view of these multiple steps, a one-year
timeframe would likely be unworkable.
The Department looks forward to working with the bill
sponsor and the Subcommittee on H.R. 2362 to identify a more
workable timeframe to develop and approve tribal leasing
regulations and a definition of ``consortium'' that meets the
goals of the legislation.
I would be happy to answer any questions you may have.
Thank you.
[The prepared statements of Mr. Black follow:]

Statement of Mike Black, Director of the Bureau of Indian Affairs,
United States Department of the Interior, on H.R. 205, Helping Expedite
and Advance Responsible Tribal Home Ownership Act

Good afternoon Mr. Chairman and members of the Subcommittee. My
name is Mike Black and I am the Director of the Bureau of Indian
Affairs (BIA) at the Department of the Interior (Department). I am
pleased to be here today to present the Department's views regarding
H.R. 205, the Helping Expedite and Advance Responsible Tribal
Homeownership Act (HEARTH Act).
This Administration continues to support tribal self-determination,
and we recognize that tribal control over tribal resources is intrinsic
to this policy.
We understand that tribal homelands are essential to the health,
safety, and welfare of the First Americans, and that it is important
for Indian tribes to have the ability to determine how their homelands
will be utilized. This is why the Department is in the process of
revising our own regulations governing leasing on Indian lands. Our
revisions will streamline the process by which leases of Indian lands
are approved, thereby promoting homeownership, economic development,
and renewable energy development on tribal lands.
The HEARTH Act is consistent with this effort, and we are pleased
to strongly support this legislation. H.R. 205 would amend certain
sections of 25 U.S.C. Sec. 415 (the Indian Long-Term Leasing Act) which
would restore tribal authority to govern leasing on tribal lands, for
those tribes that wish to exercise that authority. Under this
legislation, willing tribes would initially submit their own leasing
regulations to the Secretary of the Interior for approval. Following
Secretarial approval of such leasing regulations, tribal governments
would process leases for tribal trust land at the tribal level,
pursuant to their own laws, without a requirement for further approval
of the Secretary. This has the potential to significantly reduce the
time it takes to approve leases for homes and small businesses.
Pursuant to the HEARTH Act, leases would be limited to an initial
term of 25 years, but could be renewed for up to two additional terms
of up to 25 years each. Tribes could also approve leases for public,
religious, educational, recreational, or residential purposes for a
term of up to 75 years where permitted by tribal regulations. Tribal
leasing regulations would not apply to mineral leases or leases of
individual Indian allotments.
As noted above, under H.R. 205, tribes that desire to develop and
implement their own regulations governing leasing would be able to
submit tribal regulations for approval by the Secretary of the
Interior. The Secretary would be required to approve tribal regulations
that are consistent with the Department's own regulations governing
leasing on Indian lands. The HEARTH Act requires the Department to
review tribal leasing regulations within 120 days, but does provide us
with the flexibility to extend this time period in consultation with
the affected tribe.
The HEARTH Act ensures that the Department will retain the
authority to fulfill its trust obligation to protect tribal trust lands
through the enforcement or cancellation of leases approved under tribal
regulations, or the rescission of Secretarial approval of tribal
leasing regulations, where appropriate. At the same time, the HEARTH
Act ensures that the United States will not be liable for losses
incurred as a result of leases approved under tribal leasing
regulations.
We anticipate that the HEARTH Act will ultimately reduce the costs
of implementing tribal leasing programs for the federal government by
allowing willing Tribes to assume control of leasing on tribal lands.
By increasing efficiency in the implementation of tribal leasing
programs, the HEARTH Act will go a great distance in promoting
homeownership, economic development, and renewable energy development
by restoring tribal authority over tribal lands. The Department
strongly supports H.R. 205, and I look forward to working with this
Subcommittee in continued support of Indian tribes.
Thank you for the opportunity to present testimony on H.R. 205. I
will be happy to answer any questions you may have.
______

Statement of Mike Black, Director of the Bureau of Indian Affairs,
United States Department of the Interior, on H.R. 2362, Indian Tribal
Trade and Investment Demonstration Project Act

Good afternoon, Mr. Chairman, Ranking Member, and members of the
Subcommittee. My name is Mike Black and I am the Director of the Bureau
of Indian Affairs (BIA) in the Department of the Interior (Department).
I am pleased to be here today to provide the Department's views on H.
R. 2362, the Indian Tribal Trade and Investment Demonstration Project
Act of 2011.
The BIA provides services directly or through contracts, grants, or
compacts to a service population of about 1.7 million American Indians
and Alaska Natives who are enrolled members of 565 federally recognized
tribes living on or near Indian reservations in the 48 contiguous
United States and Alaska. In addition, the BIA is responsible for the
administration and management of approximately 56 million acres of land
held in trust by the United States for American Indians, Indian tribes,
and Alaska Natives. Building strong, prosperous, Native American
economies is a priority for this Administration. This Administration
continues to strongly support tribal self-determination and self
governance and we recognize that tribal control over tribal resources
is intrinsic to this policy.
H.R. 2362 would ``facilitate economic development by Indian tribes
and encourage investment by Turkish enterprises.'' The Department
supports the principles embodied by H.R. 2362, which would authorize a
pilot collaboration between Secretary of the Interior selected Indian
tribes and tribal consortia and Turkish business enterprises. The bill
would also authorize the tribal approval of leases entered into under
the demonstration project in the bill without the Secretary of the
Interior's approval of such leases, when certain requirements are met
for such leases. While the Department views the bill as a potential job
creator that would likely spur economic activity in Indian Country, the
Department has several concerns with H.R. 2362, and would be pleased to
work with the Subcommittee's staff to improve language in the
legislation.
The Department is aware that over the past eighteen months the
National Center for American Indian Enterprise Development (NCAIED) and
other tribal interests have participated in a Native American trade
mission to the Republic of Turkey and otherwise encouraged trade
relations between Turkish firms and Indian nations. H.R. 2362 has
identified that the requirement that certain Indian trust land leases
be approved by the Secretary of the Interior is a barrier to the growth
of these nascent commercial relations. H.R. 2362 therefore seeks to
exempt certain commercial leases from the Secretary's purview as part
of a demonstration trade project involving tribes/tribal consortia and
private companies incorporated or emanating from the Republic of
Turkey, including leases for business and economic development, and
public, educational, or residential purposes, grazing and agricultural
development involving specialized crops, so long as such leases are
executed pursuant to tribal regulations approved by the Secretary.
While we support the concept of H.R. 2362, the Department would
like to inform the Subcommittee that the Bureau of Indian Affairs
already has several examples of leases between tribes and foreign
entities. These leases cover such economic activities as rights of way,
and oil and gas development. A number of tribes have existing
commercial partnerships with companies/entities that are located in
several foreign countries, and nothing in existing law prohibits this
type of leasing activity. More specifically, there are instances where
companies/entities that are located in a foreign country but have
incorporated in a U.S. state, have executed leases with tribes. There
are also instances where companies/entities located in a foreign
country, such as Canada have a lease with a tribe. In those instances
where a Master Business Lease is the main agreement, there could be
sub-leases with foreign entities; however, such sub-lease information
is not available to the BIA.
The BIA has completed a review of its existing leasing regulations,
and will soon propose new regulations geared toward addressing
residential leasing, business leasing, and wind and solar energy
leasing. The Department is now on record before this Subcommittee in
support of the H.R. 205, the Helping Expedite and Advance Responsible
Tribal Homeownership Act (HEARTH Act), which has many provisions in
common with H.R. 2362. The Department is not opposed to this proposed
demonstration project, but believes that the passage of the HEARTH Act
would foster the same goals identified in H.R. 2362 on a broader scale.
The Department has concerns with several provisions in H.R. 2362.
The Department is concerned that the term ``consortium'' is not defined
in the bill. The Department would find it useful to provide a
definition, along with more information on how these types of
``consortium'' leases would work. Since the bill provides for the
development of tribal regulations as one requirement for non-
Secretarial approval for certain leases under H.R. 2362, there does not
appear to be a provision that would allow for ``consortium''
regulations that would provide the same exemption to non-Secretarial
approval of such ``consortium'' leases.
The Department is also concerned with Section 3 of H.R. 2362. This
section provides only one year for the tribal approval of tribal
leases, which includes submission of the tribal leasing regulations for
Secretarial approval, drafting, consulting on, and approving Department
leasing regulations for the purposes in H.R. 2362, the execution of the
leases, and review of the lease's environmental consequences. In view
of these multiple steps, the one year timeframe would likely be
unworkable.
The Department looks forward to working with the bill sponsor and
this Subcommittee to identify a more workable timeframe to develop and
approve tribal leasing regulations, and a definition of ``consortium''
that meets the goals of the legislation.
Further, the Department is concerned with Section 4 of H.R. 2362,
specifically the subsection that establishes the eligibility criteria
for a tribe or consortium, to participate under the Act, requires
applicants to ``demonstrate[], for the 3 fiscal years immediately
preceding the fiscal year for which participation is requested,
financial stability and financial management capability as demonstrated
by a showing by the Indian tribe or consortium that there were no
material audit exceptions in the required annual audit of the self-
determination contracts of the Indian tribe or consortium.'' According
to this standard, it is possible a number of Indian tribes or Tribal
consortia may be ineligible, because such tribes or consortia do not
have a P.L. 93-638 Self Determination contract or meet the federal
funding threshold that would trigger an audit review. This language
would also result in Self Governance Tribes being ineligible for the
demonstration project, since the bill leaves out all self governance
compacting Tribes that have only Self Governance agreements. Therefore,
the language in Section 4 would result in some Indian Tribes, Tribal
Consortia and Self Governance Tribes being ineligible to participate in
the demonstration project under H.R. 2362.
Unemployment in Indian County is more severe than it is in the rest
of the United States. Expanded trade relations with the Republic of
Turkey offers the potential of creating new income streams and
employment for Indian communities. The bill requires the Secretary to
submit a report one year after its enactment describing the economic
benefits this pilot achieves. We hope the results of the project will
encourage broader commercial relations between Indian Country and other
interested foreign partners, and encourage those partners to invest in
tribal communities here in the United States.
This concludes my prepared statement. I will respond to any
questions the Subcommittee may have.
______

Mr. Young. Thank you, Mr. Black. The Honorable John Berrey.

STATEMENT OF JOHN L. BERREY, CHAIRMAN,
BUSINESS COMMITTEE, QUAPAW TRIBE OF OKLAHOMA

Mr. Berry. Thank you, Mr. Chairman. Thank you for the
opportunity to speak today in support of H.R. 2362. I also want
to thank you, Congressman Boren, for the friendly introduction.
I want to thank all of you on the dais for all your hard work
over the years to benefit Native Americans and other natives of
Alaska. We are very much appreciative of your hard work.
I have submitted my written statement for the record, but I
would just like to maybe talk a little bit about my experience
with the Turkish, the Republic of Turkey, and a trip I took
there.
About a year ago I was fortunate to be able to travel to
Istanbul and Ankara with a group of tribal leaders, and I was
amazed by the country and the people. And I believe that this
is a great opportunity not only for Indian country but for the
Turkish Republic.
As Congressman Cole stated, there is a tremendous affinity
to tribal people in Turkey. I don't really understand it that
much, but I felt it and it was sincere and it really made me
comfortable with working with the people there.
It is an Islamic country, very secular. And when you are in
downtown Istanbul, you can imagine yourself being in Houston or
Dallas or Oklahoma City. It is a beautiful country, it is run
very well, and the people are extremely friendly. And I think
it is just a great opportunity to help us with an ally that has
been very much in support of our country for a long time.
Also, I think we all know there is a large economic need in
Indian country. With unemployment running as high as 80 percent
on some reservations, any opportunity to improve the economic
environment of a reservation is always a positive. And I think,
after hearing Mr. Black, I think there are ways to make this
palatable to the Secretary, and I think with some conversations
we could make this thing work out very well.
I think the pilot project is very possible, and I know
there are willing businesses within Turkey that would like the
opportunity. I have had a great dialogue with many construction
companies and actually some hide importers for the leather
industry in Turkey, and I would like to continue that process
and maybe have one of the pilot projects at Quapaw.
I also think it is a great opportunity just for us to forge
relationships with a country that is very much interested in
being our partners. They really truly love Native Americans,
and it is refreshing to have a country that is across the globe
that really feels that way. And any way we could do to
cultivate that relationship, I think that would be fantastic.
And I think we as Native Americans face some mutual
challenges. Recently the Quapaw Tribe suffered a devastating
blow in the Joplin tornado. We had several tribal members who
lost everything and were still part of the Joplin community,
going through this healing process, rebuilding process. And
there are a lot of analogies with the problems that Turkey is
facing with the recent earthquake.
So just based on, you know, we have this joint sort of
experience with horrible natural disasters, I think that is
something that we can turn around and use this bill to work
together to improve the economies of both Native American
nations and the Turkish Republic. I just think it is a great
idea. I want to go back to Turkey as soon as I can get a
ticket, and hopefully it will be soon.
And if you have any questions, I am here for you. Thank
you.
[The prepared statement of Mr. Berrey follows:]

Statement of John L. Berrey, Chairman, Business Committee, Quapaw Tribe
of Oklahoma (O-Gah-Pah), on H.R. 2362, The Indian Tribal Trade and
Investment Demonstration Project Act

Good afternoon Chairman Young, Ranking Member Boren, and members of
the Subcommittee on Indian and Alaska Native Affairs. My name is John
Berrey, and I am the Chairman of the Business Committee of the Quapaw
Tribe of Oklahoma (O-Gah-Pah).
Thank you for your invitation to appear before you today and for
holding this hearing on the Indian Tribal Trade and Investment
Demonstration Project Act (H.R. 2362). I also commend Rep. Tom Cole (R-
OK) for introducing this importation legislation.
With our current financial crisis and faced with unemployment rates
of up to 80 percent in some tribal communities, Indian tribes must find
creative ways to encourage economic development and bring prosperity to
their communities. H.R. 2362, legislation I strongly support,
encourages and expands economic development opportunities in Indian
Country; creates investment opportunities by the private sector in the
Republic of Turkey; and establishes robust relationships between Turkey
and Indian tribal communities.
H.R. 2362 will create the ``Indian Tribal Trade and Investment
Demonstration Project'' within the U.S. Department of the Interior to
include up to six Indian tribes or consortia. The measure authorizes
participating Indian tribes or consortia to lease land held in trust by
the United States without the approval of the Interior Secretary if the
lease is in furtherance of a commercial, economic, or business
development undertaking with a Turkish entity and is executed under the
tribal regulations approved by the Interior Secretary.
Authorized activities to be conducted on such leased lands would
include business and economic development; public, educational, or
residential purposes; development or use of natural resources in
connection with operations under such leases; and grazing and farming
activities. The bill would not authorize subsurface mineral development
activities.
In addition, the measure requires the Interior Secretary to approve
tribal lease regulations if they are consistent with regulations issued
by the Secretary, and subjects proposed activities to an environmental
review that meets specified requirements. It authorizes participating
tribes or consortia to rely on Federal environmental reviews included
in the Indian Long Term Leasing Act if proposed actions are Federally-
funded.
In November 2010, the Turkish Coalition of America (TCA) sponsored
an economic, educational, and cultural exchange with various Indian
tribes, in which I participated. During my stay in Istanbul, I had the
honor to represent the Quapaw Tribe. I met with distinguished high
level Turkish officials, including Zafer Caglayan, the Turkish Minister
of Foreign Trade. We were well received by the Republic of Turkey and
the exchange established enduring and positive working relationships
and investment opportunities between Turkey and American Indian tribes.
Since our trip to Turkey, tribal leaders and Indian organizations
continue to work with TCA to help the Government of Turkey and the
Turkish private sector develop a more thorough understanding of Federal
Indian law and policy regarding business development, the protocols of
working with tribal governments, and a better understanding of what
projects might be jointly undertaken by these companies and host
tribes. Our strategic objective is to establish long-term and lasting
commercial ties between Turkey and Indian tribal communities as well as
promoting cultural and education relations.
Following the meeting in Istanbul, in March 2011, along with the
Honorable Michael Finley, Chairman of the Confederated Tribes of the
Colville Reservation; Cemalettin Damlaci, Turkey Deputy State Minister
for Foreign Trade; and G. Lincoln McCurdy, President of TCA, I
participated in a panel at the Annual Reservation Economic Summit
(RES2011) & American Indian Business Trade Fair entitled Native
American Trade Mission Overseas & Free Trade Zones. This summit has led
to deeper and more extensive commercial ties and is the kind of venue
that will lead to greater levels of trade and investment.
Over recent decades, many Indian tribes have evolved to become
successful owners and managers of sophisticated commercial businesses
in various fields such as gaming, energy, finance, and manufacturing.
These tribes have also grown to play an important role in the economic
stability and future of their communities and regional economies.
Large tribal land bases, abundant natural resources, and often-
attractive locations provide prime opportunities for economic
development and prosperity. When coupled with sustained and strong
tribal leadership and business integrity, it is not surprising that
many tribes are experiencing significant economic growth and are
increasingly participating in business ventures with private sector
entities within the United States and, increasingly, with partners from
abroad.
There are available to potential private sector partners
significant investment and business development incentives designed to
encourage outside investment and job creation in tribal communities.
For instance, as part of the 1993 Omnibus Budget Reconciliation Act
(Pub.L.103-66), Congress enacted two key tax incentives aimed at
encouraging private sector employers to locate their business
operations on or near Indian lands and to hire and retain qualified
Indian employees or their spouses. The incentives are a wage and health
care credit to the federal taxpayer for hiring qualified Indian
employees and an accelerated depreciation provision for locating
qualified physical infrastructure and property on Indian lands. Since
2003, both incentives have been extended for one year periods, and will
expire on December 31, 2011. I urge Congress to permanently extend
these tax incentives.
Thank you for your leadership and strong support of Indian tribal
communities, and for your consideration of my comments. At this time, I
would be happy to answer any questions you might have.
______

Mr. Young. Thank you, sir. Floyd, you are next.

STATEMENT OF FLOYD TORTALITA, PUEBLO OF ACOMA, VICE CHAIRMAN,
NATIONAL AMERICAN INDIAN HOUSING COUNCIL

Mr. Tortalita. [Speaking in native tongue.]
Good afternoon, Chairman Young, Vice Chairman Boren and
distinguished members of the House Subcommittee on Indian and
Alaska Native Affairs. I want to thank you for your leadership
and longstanding support for Indian country.
My name is Floyd Tortalita, and I am the Vice Chairman of
NAIHC, which is the National American Indian Housing Council. I
am from the Pueblo of Acoma in New Mexico and also an enrolled
member of the Pueblo of Acoma and the Executive Director of the
Pueblo of Acoma Housing Authority.
Before I present my views on H.R. 205, the HEARTH Act,
allow me to describe the framework in which Indian tribes
provide housing and housing-related community development.
Grounded in a solid foundation of Indian self-
determination, the Native American Housing Assistance and Self-
Determination Act was enacted in 1996 as a result of the
combined efforts of tribes and tribal housing programs with
Federal policy-makers who came together to lay out a new vision
for building strong tribal communities by providing quality and
affordable housing and related physical infrastructure.
The objective in the housing is to consolidate once-
separate Federal housing programs into a single block grant and
provide tribes greater decision-making authority over their
programs.
While the delivery of housing has improved since 1996, many
challenges remain, including working with tribal Trust lands,
which are held in common and cannot be collateralized to
attract private capital, private capital inadequate or non-
existent physical infrastructure, and in weak economic
conditions that hinder the development of a robust housing
sector. Without a doubt, NAHASDA is the single biggest source
of housing capital for Indian people. However, its successes
depend on how tribes can adequately address these and other
challenges.
Most Indian tribal land is held under trust or restricted
status by the United States for the beneficial ownership of
Indian tribes or individual Indians. Trust lands may not be
sold but may be leased for a variety of purposes under
applicable law.
Because tribal Trust lands may not be foreclosed upon,
borrowers are obliged to have a valid leasehold, which is also
subject to the approval of the Secretary. In the event of a
default, the physical structure and leasehold interests are
subject to foreclosure. The requirement of the Secretary giving
approval for these leases in this instance is time-consuming
and is a contributing factor to the low home ownership rate on
native communities.
One of the biggest processes that hinders this process
dealing with the BIA is the time. I was the Executive Director
for the Pueblo of Laguna prior before coming to work for my
people, and when we were working on Section 184 loans or any
other type of lease that went through the BIA, the BIA agency
office was 20 feet away from our office, 20 feet, and it took
anywhere from six months to two years to get the lease through.
And it was again going through that red tape that was there.
In that time, myself, with that experience and coming back
to work with the Pueblo of Acoma, I came with Governor Sanchez
at the time and I met with Congressman Heinrich. Congressman
Heinrich and Governor Sanchez and I actually had a meeting
where we stood out in the hallway and talked for 15 minutes in
regards to this. We shared those same concerns again with many
of our delegates, with Congressman Lujan again at that time,
with our Senators, with Senator Domenici at that time.
So those are some of the issues that we dealt with was the
long term, the long processes that it took to work as far as
getting these leases' approval.
With the 111th Congress, the HEARTH Act was originally
introduced by the House of Representatives, by Representative
Martin Heinrich, and in the Senate by Senator Byron Dorgan.
This bill was modified in the Senate Committee on Indian
Affairs to include provisions relating to the tribal
environmental review process that was negotiated by
Representative Heinrich's office, the Senate Committee on
Indian Affairs' leadership at the BIA and the Department of the
Interior Solicitor's office and NAIHC.
The HEARTH Act will offer capable and willing Indian tribes
the authority to enact their own tribal leasing regulations and
to negotiate and enter into certain leases without the approval
of the Secretary. It will go a long way in strengthening tribal
self-determination and tribal economies at the same time.
As both H.R. 205 and S. 703 provide, it is crucial that
such proposals be made available to Indian tribes on a
voluntary basis, leaving the decisions as to whether to
participate with the tribes themselves.
In addition, we encourage H.R. 205 to include language that
directs the BIA to prepare and submit to Congress a report
detailing the history and experience of Indian tribes that have
chosen to assume responsibility for administering the Indian
Land Title and Records Office functions from the BIA. This
language was a part of last year's bill and is included in the
Senate version this year.
The NAIHC strongly supports H.R. 205 because it respects
and fosters Indian tribal decisionmaking, expedites what can
often be lengthy Federal administrative processes and will
improve the delivery of Federal housing assistance and expand
economic opportunity in tribal communities.
Thank you, and if you have any questions, I will be happy
to answer them.
[The prepared statement of Mr. Tortalita follows:]

Statement of The Honorable Floyd Tortalita, Vice-Chairman, National
American Indian Housing Council, on H.R. 205, The ``Helping Expedite
and Advance Responsible Tribal Homeownership Act of 2011''

Introduction
Good morning Chairman Young, Vice Chairman Boren, and distinguished
members of the Subcommittee on Indian and Alaska Native Affairs. My
name is Floyd Tortalita and I am the Vice-Chairman of the National
American Indian Housing Council (NAIHC), the only national Indian non-
profit organization dedicated to advancing housing, physical
infrastructure, and economic development in tribal communities in the
United States. I am also the Executive Director of the Pueblo of Acoma
Housing Authority and an enrolled member of the Pueblo of Acoma.
I want to thank Representative Martin Heinrich for his leadership
in introducing H.R. 205, and thank you Mr. Chairman, for the
opportunity to appear today and provide NAIHC's views regarding the
``Helping Expedite and Advance Responsible Tribal Homeownership Act''
(H.R. 205), which was introduced in the House of Representatives on
January 6, 2011.
Native American Housing Assistance and Self-Determination Act
Despite recent improvements in the delivery of housing assistance,
Indian housing is still substandard when compared with housing
available to other Americans. An estimated 200,000 housing units are
needed immediately in Indian Country and approximately 90,000 Native
families are homeless or under-housed. Overcrowding on tribal lands is
almost 15 percent, and 11 percent of Indian homes lack complete
plumbing and kitchen facilities.
Before I present NAIHC's views on H.R. 205, allow me to describe
the framework in which Indian tribes provide housing and housing-
related community development through the Native American Housing
Assistance and Self Determination Act (NAHASDA).
Enacted in 1996, NAHASDA is grounded in the solid foundation of
Indian Self-Determination, and was a result of the combined efforts of
Indian tribes, tribal housing authorities, key congressional
committees, and policymakers who came together to lay out a new vision
for building strong tribal communities by providing quality and
affordable housing and related physical infrastructure.
The beauty of NAHASDA is its consolidation into a single block
grant, once-disparate Federal housing funding programs, and to make
tribes--not HUD--the primary decision-maker when it comes to designing,
developing and managing a housing and infrastructure plan that meets
the unique needs of local tribal communities.
While the delivery of housing has substantially improved since
1996, many challenges remain, including working with Indian tribal
trust lands, which are held in common and cannot be collateralized to
attract private capital. In most tribal areas, inadequate or non-
existent physical infrastructure and weak economic conditions in
general are also major impediments to a more robust housing sector.
Without a doubt, NAHASDA is the single largest source of housing
capital for Indian people and its success is dependent on how tribes
can adequately address these other challenges.
Indian Trust Lands and the Indian Long-term Leasing Act of 1955
Most Indian tribal land is held in trust or restricted status by
the United States for the benefit of Indian tribes or individual
Indians. Trust lands may not be sold but may be leased for a variety of
purposes under applicable law. The Indian Long-Term Leasing Act of 1955
(the 1955 Act) requires the approval of the Secretary of the Interior
(Secretary) for certain types of leases of Indian trust and restricted
Indian lands. Any lease that is not approved by the Secretary is
invalid.
Timely processing of lease documents is critical, for not only
housing but also for Federal loan guarantee programs. One program--the
Indian Home Loan Guaranty Program--also known as the Section 184
Program, addresses the lack of mortgage lending in tribal communities
by offering mortgage financing to eligible Native American individuals,
families, tribes and tribally-designated housing entities. The Section
184 Program, administered by HUD, guarantees these loans that are made
by private sector lenders.
Because lenders cannot foreclose on tribal trust lands, borrowers
are obliged to have a valid leasehold, which is also subject to the
approval of the Secretary. In the event of a default, the physical
structure and leasehold interest are subject to foreclosure. The
requirement of secretarial review and approval for these leases, in
this instance, is time-consuming and is a contributing factor to the
low homeownership rate in Native communities.
Current law authorizes leases for up to 25 years with an option for
one additional 25-year term for a total 50-year term for ``public,
religious, educational, recreational, residential, or business
purposes. . .'' NAHASDA authorizes lease terms for ``housing
development and residential purposes'' for 50-year terms, but retains
the requirement of secretarial approval to render the lease valid.
The Secretary, acting through the Bureau of Indian Affairs (BIA),
administers the land leasing process, which can become lengthy, taking
months--and sometimes years--hindering housing, infrastructure, and
related economic development on trust lands. Because of these delays,
and the desire by individual Indian tribes for more authority and
tribal control in the leasing of their own lands, 45 Indian tribes have
sought relief from the 1955 Act by petitioning Congress for specific,
tribe-by-tribe Federal legislation.
Most recently, the Navajo Nation succeeded in amending the 1955 Act
to develop and manage its own surface leasing ordinance. The amendments
were made in 2000, and as a result, the Navajo Nation may enter into
lease agreements and renewals of leases without the Secretary's review
or approval.
The HEARTH Act
In 111th Congress, the HEARTH Act was introduced in the House of
Representatives by Representative Martin Heinrich and introduced in the
Senate by Senator Byron Dorgan. During its review and consideration by
the Senate Committee on Indian Affairs and House Natural Resource
Committee, the bill was modified to include provisions related to
tribal environmental review that were negotiated by the Senate
Committee on Indian Affairs leadership, the Bureau of Indian Affairs,
the U.S. Department of the Interior's Solicitor's Office,
Representative Heinrich, and the NAIHC. The bill was not enacted in the
111th Congress, and in January 2011, Representative Martin Heinrich re-
introduced his bill and Senator John Barrasso, introduced S.703, the
Senate companion bill.
We understand minor amendments to H.R. 205 have been considered in
recent weeks to clarify the standards tribes must meet and to authorize
the Interior Secretary to issue capacity-building grants to interested
Indian tribes. NAIHC has reviewed these amendments and supports the
amendments being added to H.R. 205.
The HEARTH Act will offer capable and willing Indian tribes the
authority to enact their own tribal leasing regulations and to
negotiate and enter into certain leases without the approval of the
Secretary. It will go a long way in strengthening tribal self-
determination and tribal economies at the same time.
The two HEARTH bills--H.R. 205 and S.703--deal with a fundamental
aspect of tribal self-governance: control of tribal resources, in this
case control over tribal land.
While NAIHC expects many tribes to seek authority to develop and
manage their own surface leasing ordinances, it is appropriate that any
such authority be made available to Indian tribes on a voluntary basis,
leaving the decision as to whether to participate with the tribes
themselves.
In addition, the HEARTH legislation directs the BIA to prepare and
submit to the Congress a report detailing the history and experience of
Indian tribes that have chosen to assume responsibility for
administering the Indian Land Title and Records Office (``LTRO'')
functions from the BIA. NAIHC believes the report will provide valuable
insight into the challenges tribes have faced in assuming
responsibility for the LTRO function, and at the same time illustrate
``best practices'' for other tribes to consider implementing.
CONCLUSION
The NAIHC strongly supports H.R. 205 because it respects and
fosters Indian tribal sovereignty and decision-making, expedites what
can often be lengthy Federal reviews and approvals, will improve the
delivery of Federal housing assistance, and will expand economic
opportunity in tribal communities.
Thank you and if you have questions, I would be happy to answer
them.
______

Mr. Young. Thank you, sir. People want to know why we are
keeping that door open back there. There is a terrible sound in
this room when it is shut. I don't know if it is pressure or
what, but it affects the acoustics of the room. So that door
opens it up and lo and behold, maybe it is Halloween. I don't
know. The balcony windows or something, I have no idea.
OK, Mr. Lincoln McCurdy, President of the Turkish Coalition
of America.

STATEMENT OF LINCOLN McCURDY, PRESIDENT,
TURKISH COALITION OF AMERICA

Mr. McCurdy. Chairman Young, Ranking Member Boren, members
of the Subcommittee, I want to thank you for inviting me to
testify on H.R. 2362. I have provided a copy of my written
testimony for the record along with letters from the Turkish
Ambassador and the President of the Turkish-American Chamber of
Commerce and Industry supporting this innovative legislation.
In my verbal testimony I would like to highlight five key
points. Point number one, jobs. H.R. 2362 is legislation that
promotes job creation in Indian country, where unemployment
ranges from 50 to 80 percent.
Point number two, no Federal funds. This legislation does
not rely on Federal funds. Turkish companies take the risk.
Point number three, why Turkey. Turkey is Europe's fastest-
growing economy and ranks 16th in the world. Turkey's growth
rate was second in 2010 to China. Turkish foreign direct
investment exceeded $21 billion in 2010. Countries that
received Turkish foreign investment also became some of
Turkey's leading trade partners.
Moreover, Turkey has the second largest construction sector
in the world after China with more than 6,000 projects in 91
countries, with project values exceeding $200 billion. Indian
country can benefit from the dynamism of the Turkish private
sector. Turkish companies are accustomed to working in
challenging conditions.
For example, you find Turkish construction projects in the
Balkans, Russia, Central Asia, the Caucuses, the Middle East
and Africa. In fact, Turkey has been the largest provider of
employment opportunities in Russia, Turkmenistan, Egypt and
Kazakhstan. In Egypt alone, Turkish companies created over
40,000 jobs.
Turkey's interest in investing in Indian country comes at a
very opportune time as more tribes are looking for
opportunities beyond U.S. borders. The educational and cultural
ties between Indian country and Turkey can therefore quickly
pave the way to economic relations that can help not only bring
the U.S. and Turkey closer together but help tribes develop
economically.
New solutions need to be considered in addressing the
economic woes in Indian country, and Turkey's economic success
story can be a model. The U.S. has free trade agreements with
various countries, and the concept of this bill is of the same
principle but without adversely affecting U.S. industry.
Turkey is an important NATO ally. The United States and
Turkey are working together in promoting democracy in the
Middle East, and with this bill our two countries will expand
the partnership by working together and creating jobs in Indian
country.
Secretary Hillary Clinton just this week said we see
Turkey's growing leadership holding great potential benefits. I
am confident about the state of our alliance and the alignment
of our interests, proud of what we have accomplished together
and hopeful of what we will achieve in the future together.
The Chairman of the Joint Chiefs of Staff, General Martin
Dempsey, also called for the expanding of relations between the
United States and Turkey.
Point number four, benefits. Once H.R. 2362 becomes law, we
firmly believe that the Turkish companies will seek to
establish manufacturing and assembling operations on tribal
lands. There are already discussions about joint venture
projects in the leather sector.
Point number five, what about American and other
international companies. H.R. 2362 is a demonstration project
and simply highlights Turkey as a starting point because of
Turkey's interest in Indian country. If successful, this bill
would pave the way for leasing reform across Indian country and
would facilitate business with American and other international
companies.
Again, I would like to express my gratitude, Mr. Chairman,
in being asked to testify on H.R. 2362. I strongly encourage
the Committee to take quick action on this bill. Our country
needs legislation that creates more jobs, and Indian country
needs jobs. This pilot project is what we need at this time.
Thank you.
[The prepared statement of Mr. McCurdy follows:]

Statement of G. Lincoln McCurdy, President, Turkish Coalition of
America, Inc., on H.R. 2362, ``The Indian Tribal Trade and Investment
Demonstration Project Act of 2011''

Introduction
Mr. Chairman and Members of the Subcommittee:
I would like to thank Chairman Young and Ranking Member Boren for
the privilege of testifying before the Indian and Alaska Native Affairs
Subcommittee today, and more importantly, for taking up H.R. 2362, the
Indian Tribal Trade and Development Act. This innovative legislation
holds tremendous potential to reform the archaic leasing system that
has hampered economic development on Tribal lands.
The leasing system that's in place today requires multiple levels
of review for every lease application on Tribal lands. At the end of
the review process, each submission must then be approved by the
Secretary of Interior. Even simple leases, therefore, can take up to
six years to receive approval, whereas a similar process takes as
little as six days on private land.
H.R. 2362 aims to create a demonstration program for up to 6 tribes
to develop their own leasing guidelines for economic transactions with
Turkish companies. This legislation aims to expand reforms enjoyed by
the Navajo Nation to a number of tribes during a yearlong demonstration
period while capitalizing on the unique and genuine interest Turkish
Americans and Turkish companies have shown in working with Indian
Tribes, spurred by TCA's efforts to build bridges between Turkey and
Indian Country.
Background on the Turkish Coalition of America
I have served as president of the Turkish Coalition of America
(TCA) since its founding in February 2007. TCA is a Washington, DC-
based nonprofit organization that aims to foster a better understanding
of U.S.-Turkey relations and Turkish American issues through public
education.
Since its founding, TCA has established outreach to other minority
communities in the United States as part of its core mission of
increasing person-to-person ties between the U.S. and Turkey. To that
end, TCA established a scholarship program in 2008 to provide funding
for up to 100 scholarships per calendar year for Native American,
African American and Hispanic American undergraduate and graduate
students for study abroad in Turkey. TCA has so far awarded 177
scholarships under the auspices of this program.
TCA has sponsored several trips to promote its scholarship programs
and to further educational exchanges between the United States and
Turkey. In January 2009, TCA brought 22 educators from Tribal Colleges
and Universities, Hispanic-Serving Institutions as well as Historically
Black Colleges and Universities on an 8-day trip to Turkey. In June
2009, TCA brought 6 professors from Turkish universities on an 8-day
trip to visit Minority-Serving Institutions, including Tribal Colleges
and Universities, across the United States. The trip included a visit
to the Pine Ridge Indian Reservation.
TCA's initial trips helped spur two leading Turkish universities to
offer their own scholarship programs for American students. Bahcesehir
University, a private social-sciences focused institution in Istanbul,
offers 8 tuition scholarships per semester to Native American, African
American and Hispanic American students, whereas Istanbul Technical
University (ITU), Turkey's oldest university and a leader in
engineering education in Europe, offers 10 comprehensive scholarships
per semester--including tuition, lodging and a monthly stipend--
exclusively to Native American students. Another Istanbul-based private
university, Ozyegin, has instituted a 4-week summer program focusing on
language, history and literature to attract Native American students to
Turkey who cannot commit to a semester-long program.
As a result of TCA's and Turkish universities' efforts, the number
of scholarship applicants among African American and Hispanic American
students soared. In November 2009, TCA organized another trip, this
time focusing solely on Native American educators to increase
participation rates among their students. The 3-week Native American
Lecture Tour brought 5 Native American educators to 12 colleges in
Turkey.
The lecture tour also coincided with a conference on Native
American cultures and literature in Turkey, organized by Hacettepe
University in Ankara. Held on November 16-17, `Native American Voices:
Languages of Survival' drew hundreds of students and professors to
presentations made by Hacettepe's own Native American studies faculty
and TCA's guests.
During a follow-up trip to Arizona in January 2010, I had the
privilege of visiting the Hopi Tribe and the Navajo Nation in the great
state of Arizona. The conditions on those reservations reminded me of
the unrealized economic potential of Anatolian villages and other
remote parts of Turkey I had witnessed while serving as a commercial
officer in Istanbul in the 1980s. This trip confirmed the wisdom in
TCA's approach. Having witnessed how Turkey managed to expand its
economy to bring benefits to all corners of the country and became the
16th largest economy in the world, I thought TCA could potentially
facilitate trade and economic relations between Turkey and Indian
Country to help spur development in pockets of America where it
unfortunately lags.
When I had the opportunity to discuss this potential partnership
with our Native American friends, as well as then Turkish State
Minister for Trade Mr. Zafer Caglayan, our project was received
enthusiastically. In fact, Minister Caglayan agreed to meet with Native
American representatives during his trips to Washington, DC, Los
Angeles and Seattle. Moreover, he offered to meet with members of the
first ever Native American Business Cooperation delegation to Turkey.
Organized and sponsored by TCA, the Business Cooperation trip brought
20 Tribal leaders and representatives from 17 Tribes in 11 states to
Turkey in November 2010 on the inaugural Turkish Airlines direct flight
from Washington, DC to Istanbul, Turkey. Participants not only got a
chance to meet extensively with Minister Caglayan, but were also hosted
by the Minister of Foreign Affairs, Dr. Ahmet Davutoglu. While in
Turkey, they also participated in and presented at `Native American
Voices: Tribal Echoes'--Hacettepe University's 2nd conference on Native
American cultures and literature.
The growing ties between Turkey and the Tribes paved the way to
Turkish government's participation at 25th Annual Reservation Economic
Summit (RES 2011) organized in March 2011 by the National Center for
American Indian Enterprise Development (NCAIED). The government of
Turkey became the first foreign nation to ever send an official
delegation to the RES--the premier Native American economic and
business development conference- which solidified their interest in
doing business with Indian Country.
In May, I was invited to speak at the Information Management
Network (IMN)'s 12th annual conference on Native American Finance in
Scottsdale, AZ. On May 16th, I gave a special presentation on
`Opportunities to Establish Future Collaborations' and participated in
a panel discussion on `Global Opportunities' to highlight Turkey as a
viable partner for Tribes looking to do business beyond the U.S.
borders.
Since May, TCA has championed a number of other initiatives to
further ties between Turkey and Indian Country. We recently facilitated
a workshop organized and sponsored by the Istanbul Technical University
(ITU) on infrastructure development. Held in Istanbul on October 18-26,
the workshop enabled 5 Native American representatives to meet with
ITU's leading engineering departments to be briefed on latest
technologies and funding opportunities to foster infrastructure
development. Workshop participants also got a chance to enjoy a private
screening of On the Trail of Sitting Bull--a film about the history and
living traditions of the Sioux by the Turkish documentary filmmaker Ms.
Ece Soydam. Ms. Soydam, who was present at the screening to answer
questions, is the only foreign director whose work is considered for an
award at the 36th Annual American Indian Film Festival.
ITU's guests also attended the opening of a special exhibit,
`Native Americans: Memory of an Ottoman Connection,' featuring a
selection of photographs presented by the Smithsonian Institute to
Sultan Abdulhamid II in 1880s. The exhibition was co-organized by TCA
and held at the Center for Islamic History, Art and Culture (IRCICA) in
Istanbul. TCA is currently in dialogue with the Institute of American
Indian Arts (IAIA) in Santa Fe, NM to organize an exhibit in Istanbul
featuring modern American Indian art.
TCA's efforts to build bridges to Indian Country has inspired other
Turkish Americans to follow suit. A dynamic Turkish American group in
New York has been organizing conferences to highlight cultural ties
between the two groups and the Turkish American Chambers of Commerce
and Industry (TACCI)--also based in New York--is ready, willing and
able to facilitate trade between Turkish and Native American
businesses.
Why Turkey: Efforts to Cultivate Educational, Political and Economic
Ties to Indian Country
Turkey is rapidly becoming an economic powerhouse. Its GDP growth
rate of 9 percent during the first half of 2011 exceeded that of even
China. H.R. 2362, therefore, can boost the economies of participating
Indian Tribes by attracting investments from one of the fastest growing
and most dynamic countries in the world.
Turkey's growing economy has come with an eagerness to invest
beyond its borders. In 2008, for example, Turkey's foreign direct
investment (FDI) surpassed 2.5 billion dollars. By the end of 2010,
Turkey's investments from 2008 to 2010 had totaled 21.6 billion
dollars.
Turkey's outward investments have traditionally been in
construction, mining, finance, manufacturing and technology/
communications sectors, all of which are labor intensive with
tremendous potential to create new jobs on Indian lands. In fact,
Turkey has been the largest provider of employment opportunities in
Russia, Turkmenistan, Egypt and Kazakhstan. Turkey's exports to Egypt
alone amounted to 2 billion dollars in 2010, creating over 40,000 jobs.
Turkey's construction sector is worth a closer look. Second largest
in the world, Turkish international contracting services have
undertaken more than 6,000 projects in 91 countries with project values
exceeding 200 billion dollars. Working in Russia, Libya, Turkmenistan,
Kazakhstan, Iraq and Afghanistan, Turkish firms have crucial experience
in some of the most challenging locations around the world.
Turkey's aggressive FDI portfolio has paved the way to greater
trade volumes with recipient countries. Consequently, countries that
have received large Turkish investments have also become Turkey's
leading foreign trade partners.
Turkey's interest in investing in Indian Country comes at a very
opportune time as more Tribes are looking for opportunities beyond U.S.
borders. TCA's outreach to date, furthermore, has helped build a common
understanding and mutual interest between Native Americans and Turks.
The educational and cultural ties between Indian Country and Turkey can
therefore quickly pave the way to economic relations that can help not
only bring U.S. and Turkey closer together, but help Tribes develop
economically without having to rely on U.S. Federal funds.
TCA's Brief Views of H.R. 2362
H.R. 2362 holds great potential to capitalize on the interest
Turkey has increasingly shown in working with the Tribal Nations.
Furthermore, by allowing Tribes to exercise greater autonomy over the
lands held in trust by the U.S. government, H.R. 2362 can spur economic
development and create jobs in some of the nation's poorest areas
without having to rely on funds from the financially strapped Federal
government. H.R. 2362 is not only a goodwill gesture that acknowledges
the monetary and time commitment various Turkish entities have so far
made to Indian Country, but it is also a great opportunity to bring the
United States and Turkey closer together. Turkey, as you know, is the
second largest force in NATO and a long-standing ally.
What TCA Expects Post-Enactment
Once H.R. 2362 becomes law, we firmly believe that Turkish
companies, long eager to break into the U.S. market, will seek to
establish manufacturing and assembly operations on Tribal lands. This
remains our biggest motivation as such an approach would help reduce
high unemployment rates on reservations while bringing U.S. and Turkey
closer together. Consequently, such an arrangement can also turn
certain designated areas within Tribal lands into distribution centers
for broader trade in the Western Hemisphere.
Conclusion
By reducing the bureaucratic burden on the participating Tribes,
H.R. 2362 can turn Indian lands into attractive investment destinations
for Turkish investors. Traditionally, Turkish firms have shied away
from investing in locations with overwhelming bureaucracies, lack of
legal assurances, limited labor force, as well as political and
economic instability. H.R. 2362 therefore plays a pivotal role in
reducing an important barrier to receiving Turkish capital.
In sum, a solid foundation has already been built to nurture mutual
understanding between Turkey and Indian Country. Now, H.R. 2362 remains
a crucial step in improving conditions and eliminating physical
barriers to welcoming Turkish investments to Indian Country.
Moreover, this innovative and historic bill will bring the U.S.-
Turkey relationship to an entirely new level by accentuating joint
commercial interests.
Expanding trade between the United States in Turkey will not only
complement the long-standing strategic partnership between the United
States and Turkey, but will also enable Turkey's thriving economy to
boost U.S. markets amid the ongoing global financial crisis. With this
legislation, furthermore, Turkey can help bolster economic growth on
otherwise underutilized Indian lands and reduce the participating
Tribes' dependence on the U.S. Federal government for funding.
In summary, I would like to re-emphasize the following points:
U.S. and Turkey have been long-standing allies that
have not fully capitalized on their joint economic interests.
With its economy booming, Turkey can help boost
stagnant economies on reservations across Indian Country,
thereby reducing Tribal dependence on Federal government
funding.
Turkish investments have created tremendous job and
growth opportunities elsewhere and H.R. 2362 can help attract
some of the Turkish direct investment into Indian Country.
Due in part to TCA's efforts to date, a solid
understanding and interest have already been built between
Turkish firms and Tribes. H.R. 2362 aims to capitalize on the
existing mutual enthusiasm by reducing barriers to investing in
Tribes.
Chairman Young and Members of the subcommittee, I thank you again
for the opportunity to testify before you on this important issue
today.
______

Mr. Young. Thank you, Mr. Lincoln McCurdy. As customary, I
am going to yield to the Ranking Member for questions first.
Mr. Boren. Thank you, Mr. Chairman. I have just got a
couple of questions for the panel, and let me start with Mr.
Black. As you know, there have been discussions about adding
amendments to the HEARTH Act to clarify policy in regards to
environmental concerns. Would the Bureau continue to support
this bill with the proposed amendments? Have you looked at all
of those?
Mr. Black. I haven't seen all of the proposed amendments,
Mr. Congressman, but the language as it is written is being
supported strongly by the Administration at this time. And we
have seen some additional language that we are not necessarily
opposed to either.
Mr. Boren. Another question for you. H.R. 205 requires the
Secretary to approve tribal regulations before a tribe can
commence leasing activities on its own.
The bill sets forth certain parameters for approval,
specifically that tribal regulations must be consistent with
the Department's own regulations. But what if a tribe seeks to
engage in activities that the Department does not have specific
regulations, such as a residential lease, that govern those
activities? Will the tribe need to come up with those type of
regulations on its own or kind of defer to the BIA? How would
that work?
Mr. Black. OK. Currently, under 25 C.F.R. Part 162, our
regulations address agricultural and nonagricultural leases.
The residential leases, as mentioned, would fall under the
nonagricultural portion of that as long as those would be
consistent with that.
Under our new proposed regulations, we do develop specific
regulations pertaining to residential leases. And the tribal
regulations, that could be used as a framework or a model in
the development of the tribal regulations.
Mr. Boren. OK. Since we have a little time left, I want to
go to Chairman Berrey, your testimony on Mr. Cole's bill. In
your written statement you indicate that tribal leaders have
worked with TCA to develop a better understanding of the types
of projects that might be undertaken. Can you give us some
examples of potential projects or things when you went on your
trip that you kind of visited about?
Mr. Berry. Sure. There are a couple things that I focused
on since I went on the trip. One is construction. The Quapaw
Tribe is currently working with Manhattan Construction in
Oklahoma to look at teaming together and working with
construction companies in Turkey to joint-venture on some
projects, whether they are in the United States or in the
Middle East. We are trying to get them together to see if there
is some potential in working together.
And then we have been also working on trying to source
hides and leather products for the Turkish market. There is a
large demand for more hides worldwide. And because so many
reservations in the United States have a lot of Native American
cattlemen, we thought there is an opportunity there to provide
hides from the Native American producers to the Turkish market.
Mr. Boren. Those are great examples. Again, thank you for
your testimony. I have one left, a little over a minute and a
half, for Floyd there next to you. I have a question for you.
Do you have a general sense of how many tribes have the
administrative capacity to conduct their own leasing activities
in reliance on their own regulations? Can you give us a couple
of examples of tribes that currently have such a capacity? I
think it was mentioned earlier, Navajo, a while ago, over a
decade, have been.
But other tribes, you know, we have a lot of tribes out
there, certainly some smaller, some larger and each with
different capacities to handle these regulations.
Mr. Tortalita. There are many tribes throughout the United
States that have built this capacity. Again now, with many of
the self-determination programs that are out there, many tribes
are building that capacity.
For one, I can speak on behalf of the Pueblo of Acoma,
which I am part of. We have that capacity. We are one that
would be a good representation of many of the tribes out there.
We do maintain a land office, which keeps the records of all of
the land, of all the lands of the Pueblo, whatever status they
may be in.
Land assignments to tribal members, it keeps that identity
for them. It maintains all of the land records for the Pueblo
of Acoma. So they have built that capacity of maintaining and
administering the land statuses and any of the land issues that
we do have for the Pueblo. Many tribes have built that
capacity. Many tribes have that capacity to administer such
programs.
Mr. Young. Thank you, gentlemen. Mr. Kildee.
Mr. Kildee. Thank you, Mr. Chairman. Pardon my voice, I
will try to be heard.
Mr. Black, do the majority of the other Indian tribes and a
group like NCAI generally support both H.R. 205 or H.R. 2362,
or are there conflicting elements in those bills that would
have to be resolved?
Mr. Black. Quite honestly, sir, I don't believe there is
any strong opposition in Indian country to either one of these
bills. I can't really speak as much to H.R. 2362, but H.R. 205,
the HEARTH Act, has had pretty strong support from my
understanding throughout Indian country.
Mr. Kildee. Thank you very much. When you deal with kind of
a tri-government operation like this with the Indian sovereign
government and the United States sovereign government and the
Turkish Government, do you consult any with the U.S. State
Department on a bill like H.R. 2362?
Mr. Black. Sir, I don't have an answer for that. I would
have to get back to you on that one.
Mr. Kildee. OK. If you could get an answer for us, I would
appreciate that.
Mr. Black. Yes, sir.
Mr. Kildee. Thank you, Mr. Chairman.
Mr. Young. Eni.
Mr. Faleomavaega. Mr. Chairman, thank you for calling this
hearing, and our Ranking Member. I have taken a real interest
in reading some of the statements, and I do want to say for the
record I fully support my good friend's proposed bill in H.R.
205, but I do have some interesting questions, at least to me
they are interesting questions, about H.R. 2362.
First of all, I want to personally commend the Turkish
Government for the interest that it has taken with all its
resources and the institutions that it is trying to work and
dealing with our Native American community. And it always seems
to be the repeating question, why Turkey?
I am very curious if Mr. Lincoln, if he is any relation to
my good friend, David McCurdy.
Mr. McCurdy. I have been asked that many a time. No, we are
not. My side of the family comes from Pennsylvania.
Mr. Faleomavaega. Oh, I thought you were from Oklahoma as
well. But anyway, if you see Mr. McCurdy, please give him my
regards. He is a dear friend, and he formerly served as a
member of this Committee I believe.
As I have said earlier, I commend the Turkish Government
for its efforts to not only provide economic but as well as
educational opportunities for our Native American communities.
And the question is, and I want to ask Mr. Black this question,
you mentioned earlier in your testimony that there are other
foreign governments that have had dealings with tribal
governments where the Department is already in the process or
have been actively engaged in, whether it is leasing or
whatever it is, in this relationship.
And I ask, there are 197, 198 other countries in the world.
And not to take anything away from the initiative in terms of
Turkey as a good example of working with our Indian tribes, the
question is, can't we just say any country that has the
capacity similar to what Turkey has been doing with our tribes
should also become as a qualifier or the one that could
participate as well so that we won't have to be coming every
time that another country may have a same, similar expression
like Turkey, that we have to pass another piece of legislation?
Or can it be done in a generic way, any country that wants to
come and do this so that it falls within the parameters of the
principles that this proposed bill tries to accomplish? Mr.
Black?
Mr. Black. As I stated in my testimony, that it is our
belief that the HEARTH Act has many of the same provisions that
would allow for exactly what you are saying I think.
Mr. Faleomavaega. And I could fully appreciate Mr.
McCurdy's statement, saying that it is just unbelievable,
whether it is because of the bureaucratic maze that the tribes
have to go through, where the leasing takes six years? And if
it was done through a private entity, only six days? I mean,
this is ridiculous.
But I suppose that, Mr. Black, you can probably assist us
by streamlining the procedure so that these tribes don't take
six years to get lease approvals or whatever it is that needs
to be done with the Department.
Mr. Black. Yes, sir, that is largely one of the main
driving factors in the development of our new regulations was
to try to start eliminating, streamlining and providing a more
clear and consistent regulation dealing with all of the
different types of leases that we have and identifying specific
timeframes for the review and approval process, which currently
aren't in our regulations.
Mr. Faleomavaega. But is my question out of context in
terms of what I am saying is that can we make adjustments to
the bill so that countries like Turkey or any other country
that may want to come and commit itself to resources in
developing and giving assistance to our tribes, can this be
done without having to be so specific? Would it be wrong for me
to suggest that if, after Turkey, what happens if another
country--maybe Israel, maybe Germany, maybe some other ones--
will we have to go through the legislative process every time
another country comes in? Mr. Black?
Mr. Black. Sir, if you wouldn't mind, I would like to be
able to formulate a better response and get back to you on that
one.
Mr. Faleomavaega. OK. But this is not taking anything away
from Turkey, which I fully admire and respect in its efforts to
give assistance to our tribal governments. I have 100 other
questions, Mr. Chairman, but I think I better--I thank you for
the 24 seconds I guess.
Here is the key to something that is too dear to my heart.
We have 47,000 Native American students attending, over 100 BIA
students, from K to grade 12. My question, where do they go
from there? What is the level in terms of their pursuits in
getting a college education? I notice the Turkish Government is
offering scholarships. And my time is up. Thank you, Mr.
Chairman. Gee, whiz.
Mr. Young. Thank you.
Mr. Faleomavaega. Can I, just one statement, Mr. Chairman?
Mr. Young. Oh, absolutely. And then I am going to rap the
gavel, but you have one more shot.
Mr. Faleomavaega. OK. One thing that I love so much
recently, and I say God bless her heart, she passed. Mrs.
Cobell, who had worked so hard. Part of that settlement as I
understand is that there is supposed to be a $16 million
scholarship fund that is going to come out of that funding
where they are supposed to provide scholarships and
opportunities for Native American students. And I am curious
if, Mr. Black, a decision has been made in finding out who this
funding is going to be taken out for.
My time is up. Thank you, Mr. Chairman.
Mr. Young. Mr. Lujan.
Mr. Lujan. Mr. Chairman, thank you very much to yourself
and to Ranking Member Boren for bringing us here today and to
my colleague as well, Congressman Heinrich of New Mexico, and
Congressman Cole, Mr. Chairman, for their presence today as
well. It is always nice to have a friend from New Mexico, and
our friend, Mr. Tortalita, from Acoma Pueblo. So it is always
good to see you and to welcome you as well to our proceedings
here. You are always so kind and generous, inviting us in when
we have a chance to visit home as well, so I thank you for
that.
Mr. Chairman, specifically to Mr. Black. H.R. 205 requires
the Secretary to approve tribal regulations before a tribe can
commence leasing activities on its own, and the bill sets out
certain parameters for approval, specifically that tribal
regulations must be consistent with the Department's own
regulations.
But what if a tribe seeks to engage in activity that the
Department does not have specific regulations, such as
residential leases, that govern those activities? Would the
tribe need to come up with those types of regulations on their
own? I think we have touched on it, but I just want to be clear
on it.
Mr. Black. Well, as I stated before, Mr. Congressman, you
know, we do have our nonagricultural-specific sections in Part
162. It does not clearly identify the home site leases
themselves, but as long as it is consistent with that, they
could develop their own regulations to do so.
But under the new proposed regulations, we do have specific
residential sections within those regulations that a tribe
could adopt or be consistent with those.
Mr. Lujan. And I appreciate very much the questions from my
colleague, Mr. Faleomavaega, and I share some of those same
questions. Mr. Black, your response to one of them raises a
question. Does the HEARTH Act accomplish the goals of H.R.
2362?
Mr. Black. I can't say that, you know, personally that it
accomplishes all the goals. I believe that provisions of H.R.
205 on the face of it would probably meet the goals of H.R.
2362 in allowing, you know. There are no restrictions in H.R.
205 that I see that would restrict another government or
another country doing business in the United States from
entering into leases with Indian tribes.
Mr. Lujan. Very good. And in your written statement you
indicate that the Administration believes that H.R. 205 will
promote among other industries renewable energy on Indian
lands. How can the authorities under the HEARTH Act better
encourage renewable energy development than the authorities
under existing law?
Mr. Black. Under the HEARTH Act, the tribes are able to
develop their own regulations, which will add additional
flexibility to what they can do and possibly make their lands
more attractive to promoting industry in making the regulations
more friendly or flexible in how they are dealing with
renewable energy companies.
Mr. Lujan. And are there any concerns associated with
potential partnerships down the road with other nations in the
gaming arena? Does that have to be addressed here, or is that
something that does not need to be addressed because it is
addressed elsewhere?
Mr. Black. I don't think it has to be addressed as part of
this HEARTH Act.
Mr. Lujan. Thank you very much, Mr. Chairman. I very much
appreciate the time today.
Mr. Young. Thank you, sir. Martin.
Mr. Heinrich. Thank you, Mr. Chairman. Vice Chairman
Tortalita, I want to ask a question just regarding one of the
concerns that I hear raised again and again is that families
sometimes choose to move off reservations and oftentimes into
communities that are substantially geographically distant from
their home communities because it is easier to buy a home in
Grant or in Albuquerque than it is in Acoma or Laguna or their
home, Pueblo.
Can you just talk a little bit about why it is important
for your community for families to be able to continue to live
on their home, Pueblo?
Mr. Tortalita. Yes. It has provided a large obstacle again
for many families, the time that it takes again to put the
lease together. Again, imagine if a six-month to 24-month cycle
was the process that was there in the private sector to close
on a home loan. To close on that, could you imagine taking two
years to close, what that would do to the housing market right
now?
For many tribes, like at the Pueblo of Acoma, we are trying
or we are starting to look at building an economy. How do we
start to develop an economy? And housing is the key, it is the
basis is to develop that economy.
Again, what is always said from our tribal leadership is
they tell our young people go out and get an education, learn
what you can and come home and bring it to us. Well, many
people do that, but now it is very difficult to get housing on
the reservation.
Again, if I were to take just a regular straight loan, we
can do it at 12 percent, get a 12 percent home loan; I mean,
that would be kind of crazy. But going through the 184, which
requires certain leases, certain documents in place, it could
take right now six months to two years to get that lease.
So the quickest way to get a home is to move into
Albuquerque, to move into Grant. Now again, trying to develop
that economy within the reservation, it starts to hinder that
process because many of those professional people are moving
out, taking their expertise and skills away from the
reservation and again now leaving the reservation behind
because they are away from the reservation.
Mr. Heinrich. Thank you, Vice Chairman. Mr. Chairman, I
yield back.
Mr. Young. Well, again, I want to thank you for introducing
this bill because that was one of my pet peeves when I found
out it took years to get--a tribe agrees to it, can't get a
loan because the BIA didn't do it. I am glad Mr. Black--by the
way, I am not going to pick on you because I think you are
trying--you are just in a morass of bureaucracy, and if we can
help you out with this legislation, I will gladly do that.
You mentioned the HEARTH Act lets the tribes write
regulations a little more flexible than existing regulations,
is that correct? Is that what you said?
Mr. Black. I think it gives them the opportunity to do
that, sir, as long as they are consistent with our regulations
pertaining to that.
Mr. Young. OK. Now my biggest challenge, and this is
something that has been a pet peeve of mine, regulations beget
regulations beget more regulations beget more regulations
because when you write a regulation and the tribe writes a
regulation to meet your needs, you can change your regulations.
I would like to have some permanency when they write these
regulations if you follow what I am saying.
Mr. Black. I do, sir.
Mr. Young. Because that is something very important. This
legislation hopefully will have it in it so that once they meet
the agreement with you and with the other agencies, you can't
willy nilly--the EPA is famous for this by the way, changing a
regulation after the fact. And that puts a terrible burden on
the tribes, and it is mostly not justified; it is somebody
making work.
You said, Mr. Black, timeframe, one year wasn't long
enough? Why would not one year be long enough to issue permits
or whatever that you were talking about?
Mr. Black. No, I was talking about the Turkish bill, H.R.
2362, sir. And according to that bill, in order for a tribe to
be able to participate under this bill, they had to actually
enter into a lease within a one-year timeframe of the enactment
of the bill. And that would require, you know, them developing
the regulations, being approved under the Department, actually
having the lease negotiated and entered into with the party
involved in that lease. There were some other provisions in
ensuring that they met the audit requirements. And all of that
would have to be done within a one-year timeframe. We are just
concerned that we wouldn't be able to meet that.
Mr. Young. Well, that is my biggest concern. What would be
the right timeframe? Not two years?
Mr. Black. I would most certainly hope not, sir, but we
would be more than happy to work with the Committee to look at
that.
Mr. Young. OK. Give me an answer because I don't want this
thing to get bogged down again in regulation inactivity. That
is what has happened. I heard the gentleman, Floyd--I can't
pronounce your last name, I do apologize--you said it took was
it six years?
Mr. Tortalita. It takes anywhere from six months to two
years to get the documents in place.
Mr. Young. OK. Now were you working with the BIA office
across the street from you?
Mr. Tortalita. Yes, we were actually 15 feet from them.
Mr. Young. Now was that where the roadblock was, or was it
in Washington, D.C.?
Mr. Tortalita. It was the process in getting the approval
from the Secretary. From the time we submit to the BIA office,
which was the Agency office right next door, I can honestly say
I am not sure exactly what channels it goes through once it is
submitted to the BIA. I just wait for the information to come
back to me from the BIA.
So from the time it leaves my office to the BIA, I don't
know what channels are there, what other red tape. I am
assuming there are other channels and a lot of red tape it must
go through if it is going to take 24 months to get through its
process and back.
Mr. Young. Yes. That is what we are trying to do with these
two pieces of legislation, expedite that process.
I believe Mr. McCurdy, in your written remarks you
mentioned you visited the Navajo and Hopi reservations. What
similarities did you see there between the Turkish village and
the reservations?
Mr. McCurdy. I had the great honor of traveling in Navajo
lands and Hopi lands in January of 2010, and the landscape is
almost identical to Anatolia. And the Turkish people have
developed Anatolia since the establishment of the Republic, so
the problems confronting the Hopis and the Navajos are issues
that the Turks have overcome and bringing prosperity to the
countryside in Anatolia. So I think the Turkish people have a
lot to share with the Native Americans there.
Mr. Young. Well, I think Eni brought up a good point about,
I am all for the Turks because I sort of like them to have a
leg up because they were the first interested. And I have to
mention this to you, Mr. McCurdy. You can check in with my
Chiulista Corporation in Alaska; it is a Native corporation. I
am putting a little plug in now. Don't worry.
[Laughter.]
Mr. Young. They have a grand idea that will work. You know,
we are going to start working with our climate instead of
against it. Facebook, Google, all these huge internet
operations, they have to pay to cool their buildings off. And I
am saying my Natives have the land and they have the natural
cooling capability.
It is a good thing. I mean, take a little time to go look,
you know, tell the Turks to do that because it is a way that we
can set up this fighting the climate--work with the climate,
because this computer age, you don't realize how much energy it
takes to keep the computers cool. And so just keep that in
mind.
Last, I will say one thing about the Turkish people. My
connection with them is very limited. But during Korea, the one
U.N. force that was the most feared was the Turkish troops. The
Chinese were extremely frightened of them. I liked that.
Believe me, I liked it a lot.
These are two good pieces of legislation. Mr. Black and all
of you, we will be working with it. I think they are pretty
well put together. If there are some things you think you want,
get it to the staff on both sides of the aisle and let us see
if we can't move this legislation relatively quickly because
all of you mentioned the need for it. We know the problems on
the reservations. We are working on our legislation. We have to
try to eliminate these problems, quick leasing, development of
natural resources, employment.
And I love you for saying housing because we have found
this even in Alaska. If I don't have housing in the clinics we
build, I can't keep the doctors and the nurses. If I don't have
housing, I can't keep the VOPs. Housing is a key to keeping
your people available who have that education. Otherwise, they
are going to go to the big city. Our biggest villages in Alaska
now are Anchorage and Fairbanks because we don't have the
capability when they come back to keep them on the land which
is theirs, and that is not the right thing.
Any other questions? Yes, Eni.
Mr. Faleomavaega. Mr. Chairman, I just have one question
that I want to certainly ask our panel for a response.
I have served as a member of the Foreign Affairs Committee
now for over 20 years and see how the movements have been in
transitioning of different governments from all different
regions of the world. I am being selfish to the extent that I
want absolute assurances that our Indian communities aren't
going to be given any problems in case there is some political
uncertainty in those regions and any of those countries that
our tribes may be dealing with.
I am not taking anything away from Turkey, but they live in
a very tough neighborhood. In fact, it is a very, very
sensitive area where our foreign policies are hiding part of
the mix that is going on right now in the Middle East with
Syria. And we are having strained relations with Turkey too in
many aspects because of dealing with Israel.
So what I am saying is that this is an area that I wanted--
and I thank my good friend, Mr. Kildee, for asking Mr. Black do
you conduct consultations with our State Department because
this ties in on a government-to-government relationship, what
is our foreign policy to those entities. And like I said, I am
not saying that Turkey is our enemy. I am just saying that
things change as they come. We may be friends today and we may
be enemies tomorrow. You know, the next thing you hear the
enemy of my enemy is my friend.
So I just wanted to put that little sense of caution, that
sometimes we look and I think Mr. McCurdy's foundation is doing
a fantastic job. I wish I had a foundation that had a $30
million operating fund in terms of all the things that you are
doing for the good of our Native American tribes, and I commend
you for that. But I just want to make sure that in the years to
come we don't know what is going to happen, nothing is for
sure. But in dealing with foreign governments, this is just
something I just wanted to pass on. And I think Mr. Berrey may
have a comment.
Mr. Berry. Yes, sir. Thank you, sir. I have just been
listening to the conversation that has been taking place, and
there is still this sort of war mentality I am hearing from the
Bureau. You know, the Quapaw Tribe just within the last few
years, we have raised over $600 million on Wall Street. We do
leases, we do business contracts on a daily basis. This is just
a pilot project to let tribes like mine prove themselves to be
able to do a lease that is typical in other segments of the
world.
Mr. Faleomavaega. What I would like to just, Mr. Berrey, I
didn't mean to interrupt you, why do you have to prove it as a
pilot project if you already have the capability and capacity
to do the work that you are most capable of doing?
Mr. Berry. Because of the delays that are currently there
within the Bureau. And even though they may be rewriting the
policies and procedures of the regulations now, we want to act
today, not tomorrow, when they are going to complete the
process. And we think this pilot project offers that
opportunity, and we are not going to sign a lease that is going
to create liability for the tribe or for the U.S. Government.
Mr. Faleomavaega. But why not just say not just six tribes,
let us just say any tribe that qualifies whatever measurements
or whatever requirements that can be made should function and
not say well, we are going to use only six tribes just as a
starter? I suggest that we ought to just go right ahead and do
it.
Mr. Berry. Well, I think that is a great idea, and I would
support that. But I think if we start with a small bite, show
the progress and the success of the process, then it is easier
to step into a broader environment.
You know, the tribes are going to be protective of their
assets and of any potential liability that may be created for
not only the tribe but for the Secretary. So all we are asking
is the Secretary to step back a little bit and let us enter
into these leases so we can provide an economic environment
that will produce some dollars for our people. We are not going
to give away the farm just to let the Turks come in and build
something. We want to create an opportunity with a government
that is willing to bring people in an investment and just take
a hold, do a pilot project, get success and then move forward.
Mr. Faleomavaega. Thank you, Mr. Chairman. I think Mr.
McCurdy may have a comment in reply.
Mr. McCurdy. Thank you, Mr. Congressman. I just want to
add, you mentioned about the State Department. The U.S.
Ambassador and the U.S. Embassy have been fully briefed about
this bill by the Turkish Coalition of America. And the U.S.
Government promotes U.S. investment big time in Turkey and they
would like to see greater Turkish investment in the United
States to increase.
Turkey is one of the few countries in the world where the
U.S. has a favorable balance of trade, and so there are efforts
trying to balance that a bit more and there is an effort trying
to encourage Turkish investment in the United States.
Mr. Faleomavaega. Thank you, Mr. Chairman.
Mr. Young. I appreciate those comments, and I want to thank
the panel. I mean, I think we are all on the same page here,
and we will see if we can't get these pieces of legislation
moving. I am still working. I have some ideas on my Empowerment
Act. I hope you have been contacted. It was big, and now it has
gotten little. Little is good I think, you know, simple.
I want to thank the Committee. This meeting is adjourned.
[Whereupon, at 4:05 p.m., the Subcommittee was adjourned.]

[Additional material submitted for the record follows:]

[The prepared statement of Mr. Markey follows:]

Statement of The Honorable Edward J. Markey, Ranking Member,
Committee on Natural Resources, on H.R. 205 and H.R. 2362

Thank you, Mr. Chairman.
There is no doubt that new business opportunities should be made
available to Indian tribes and that leasing of their trust lands for
certain purposes, independent of the Secretary's approval, is good
policy aimed at achieving that goal. I commend Mr. Heinrich for
introducing H.R. 205, a bill that would authorize willing Indian tribes
to manage leasing activities on their own lands without unnecessary and
burdensome federal oversight.
Versions of H.R. 205 have been introduced and considered by the
Natural Resources Committee since 2009, but none have been acted upon
by the Congress for a variety of reasons, most notably the uncertainty
regarding how to strike the right balance between economic development
and providing for adequate environmental review associated with that
development on tribal trust lands. Accordingly, this Subcommittee's
Minority staff has worked with Mr. Heinrich's office, as well as
national and regional tribal organizations including the National
American Indian Housing Council, to strike this balance. We are
confident that enhancement of the bill to provide for an environmental
review process that enables tribes to meet or exceed federal standards
already in place, as well as provides for tribes to seek the
Secretary's technical assistance to tailor such process to their own
business development needs, will improve an already excellent bill and
advance its passage by the House.
Subcommittee Majority and Minority staff has discussed the
possibility of an agreed-upon future amendment of the bill reflecting
these changes, and I hope that I may rely on the chairman's full
cooperation to that end.
Thank you. I yield back.
______

[A letter submitted for the record by His Excellency Namik
Tan, Ambassador, Republic of Turkey, on H.R. 2362 follows:]

[GRAPHIC] [TIFF OMITTED] T1118.001

[A letter submitted for the record by Turkish American
Chamber of Commerce and Industry, on H.R. 2362 follows:]

[GRAPHIC] [TIFF OMITTED] T1118.002