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104th Congress                                            Rept. 104-439
                        HOUSE OF REPRESENTATIVES

 1st Session                                                     Part 1
_______________________________________________________________________


 
           SADDLEBACK MOUNTAIN-ARIZONA SETTLEMENT ACT OF 1995

                                _______


 December 21, 1995.--Committed to the Committee of the Whole House on 
            the State of the Union and ordered to be printed

_______________________________________________________________________


  Mr. Young of Alaska, from the Committee on Resources, submitted the 
                               following

                              R E P O R T

                         [To accompany S. 1341]

      [Including cost estimate of the Congressional Budget Office]

    The Committee on Resources, to whom was referred the Act 
(S. 1341) to provide for the transfer of certain lands to the 
Salt River Pima-Maricopa Indian Community and the city of 
Scottsdale, Arizona, and for other purposes, having considered 
the same, report favorably thereon without amendment and 
recommend that the Act do pass.

                          purpose of the bill

    The purpose of S. 1341 is to provide for the transfer of 
certain lands to the Salt River Pima-Maricopa Indian Community 
and the city of Scottsdale, Arizona.

                  background and need for legislation

    S. 1341, the proposed Saddleback Mountain-Arizona 
Settlement Act of 1995, ratifies a land settlement agreement 
between the Resolution Trust Corporation, the City of 
Scottsdale, and the Salt River Pima-Maricopa Indian Community. 
The land in question, 701 acres currently held by the 
Resolution Trust Corporation, would be disposed of as follows:
          One 27-acre tract and one 98-acre tract would be 
        purchased by the City of Scottsdale; and
          One 211-acre tract and one 365-acre tract would be 
        purchased by the Tribe;
    Pending litigation between the parties would be dismissed 
and each of the four tracts would be administered according to 
a detailed ownership, development, and use agreement.
    Finally, S. 1341 provides that the land purchased by the 
Tribe will be taken into trust and become part of the Salt 
River Reservation.

                            committee action

    S. 1341 was introduced on October 19, 1995, by Senator John 
McCain. The bill was passed by the Senate on November 29, 1995. 
In the House of Representatives, the bill was referred to the 
Committee on Resources and the Committee on Banking and 
Financial Services. With the Committee on Resources, the bill 
was referred to the Subcommittee on Native American and Insular 
Affairs.
    On November 14, 1995 the Subcommittee on Native American 
and Insular Affairs held a hearing on a similar bill, H.R. 
2490, introduced by Congressman J.D. Hayworth on October 17, 
1995.
    On December 13, 1995, the Full Resources Committee met to 
consider S. 1341. The bill was discharged by unanimous consent 
from Subcommittee. No amendments were offered. S. 1341 was 
ordered favorably reported by voice vote to the House of 
Representatives.

                      section-by-section analysis

Section 1. Short title

    This section states that this Act may be cited as the 
``Saddleback Mountain-Arizona Settlement Act of 1995''.

Section 2. Congressional findings and purposes

    Subsection (a) sets forth findings for the bill. Subsection 
(b) sets forth the purposes of the bill.

Section 3. Definitions

    This section provides definitions for 12 terms used in the 
bill.

Section 4. Approval of agreement

    This section states that the Settlement Agreement is 
approved and ratified and shall be fully enforceable in 
accordance with the terms and the provisions of this Act.

Section 5. Transfer of properties

    Subsection (a) provides that the Resolution Trust 
Corporation shall transfer: (1) to the Secretary of the 
Interior the Mountain Property and the Development Property 
purchased by the Salt River Pima-Maricopa Indian Community; and 
(2) to the City of Scottsdale, the Preservation Property and 
the Dedication Property purchased by the City, upon 
satisfaction of all conditions of closing set forth in the 
Settlement Agreement.
    Subsection (b) provides that the Mountain Property and the 
Development Property transferred to the Salt River Pima-
Maricopa Indian Community shall, subject to sections 6 and 7, 
be held in trust by the United States for the Community and 
become part of the Community's Reservation.
    Subsection (c) provides that, upon satisfaction of all 
conditions of closing set forth in the Settlement Agreement, 
the Secretary shall file surveys depicting the various 
properties with the office of the Maricopa County Recorder and 
the Titles and Records Center of the Bureau of Indian Affairs 
in Albuquerque, New Mexico.

Section 6. Limitations on use and development

    This section provides that upon the satisfaction of all of 
the conditions of closing set forth in the Settlement 
Agreement, the properties to be transferred to the City and the 
Community pursuant to section 5 shall be subject to the 
following limitations:
          (1) the Preservation Property shall be forever 
        preserved in its natural state for use only as a public 
        park or recreation area that shall be used, maintained, 
        and subject to section 4(C) of the Settlement 
        Agreement, except that, at the sole discretion of the 
        City, a portion of the Preservation Property (the 
        Dedication Property) may be used to widen, reconfigure, 
        repair or reengineer Shea Boulevard in accordance with 
        section 4(D) of the Settlement Agreement;
          (2) the Dedication Property shall be used to widen, 
        reconfigure, repair or reengineer Shea Boulevard and 
        136th Street, in accordance with sections 4(D) and 7 of 
        the Settlement Agreement;
          (3) the Mountain Property shall be forever preserved 
        in its natural state for use only as a public park or 
        recreation area that shall be used, maintained, and 
        subject to the restrictions set forth in section 5(C) 
        of the Settlement Agreement; and
          (4) the Development Property shall be used and 
        developed for the economic benefit of the Community in 
        accordance with the provisions of the Settlement 
        Agreement and the Development Agreement.

Section 7. Amendments to the settlement agreement

    This section provides that no amendment made to the 
Settlement Agreement (including any deviation from an approved 
plan described in section 9(B) of the Settlement Agreement) 
shall become effective unless the amendment is made in 
accordance with the applicable requirements under sections 9(B) 
and 34 of the Settlement Agreement and is consistent with the 
provisions of this Act.

            committee oversight findings and recommendations

    With respect to the requirements of clause 2(l)(3) of rule 
XI of the Rules of the House of Representatives, and clause 
2(b)(1) of rule X of the Rules of the House of Representatives, 
the Committee on Resources' oversight findings and 
recommendations are reflected in the body of this report.

                     inflationary impact statement

    Pursuant to clause 2(l)(4) of rule XI of the Rules of the 
House of Representatives, the Committee estimates that the 
enactment of S. 1341 will have no significant inflationary 
impact on prices and costs in the operation of the national 
economy.

                        cost of the legislation

    Clause 7(a) of rule XIII of the Rules of the House of 
Representatives requires an estimate and a comparison by the 
Committee of the costs which would be incurred in carrying out 
S. 1341. However, clause 7(d) of that rule provides that this 
requirement does not apply when the Committee has included in 
its report a timely submitted cost estimate of the bill 
prepared by the Director of the Congressional Budget Office 
under section 403 of the Congressional Budget Act of 1974.

                     compliance with house rule xi

    1. With respect to the requirement of clause 2(l)(3)(B) of 
rule XI of the Rules of the House of Representatives and 
section 308(a) of the Congressional Budget Act of 1974, S. 1341 
does not contain any new budget authority, spending authority, 
credit authority, or an increase or decrease in tax 
expenditures. S. 1341 will result in an increase in revenues to 
the Federal Government in Fiscal Year 1996, but this increase 
would be offset by a similar revenue loss in the future.
    2. With respect to the requirement of clause 2(l)(3)(D) of 
rule XI of the Rules of the House of Representatives, the 
Committee has received no report of oversight findings and 
recommendations from the Committee on Government Reform and 
Oversight on the subject of S. 1341.
    3. With respect to the requirement of clause 2(l)(3)(C) of 
rule XI of the Rules of the House of Representatives and 
section 403 of the Congressional Budget Act of 1974, the 
Committee has received the following cost estimate for S. 1341 
from the Director of the Congressional Budget Office.

               congressional budget office cost estimate

                                     U.S. Congress,
                               Congressional Budget Office,
                                 Washington, DC, December 18, 1995.
Hon. Don Young,
Chairman, Committee on Resources,
House of Representatives, Washington, DC.
    Dear Mr. Chairman: The Congressional Budget Office has 
reviewed S. 1341, the Saddleback Mountain-Arizona Settlement 
Act of 1995, as ordered reported by the House Committee on 
Resources on December 13, 1995. S. 1341 would ratify a 
settlement agreement that would transfer 701 acres from the 
Resolution Trust Corporation (RTC) to the Salt River Pima-
Maricopa Indian Community (to be held in trust by the 
Department of the Interior) and the city of Scottsdale, 
Arizona. Under the settlement agreement, the Salt River 
Community and the city of Scottsdale have agreed to pay the RTC 
a total of $6.5 million, which would be offsetting collections 
to the federal government. We estimate that enacting S. 1341 
would increase federal collections to the federal government. 
We estimate that enacting S. 1341 would increase federal 
collections by $6.5 million in fiscal year 1996, but that such 
collections would be offset by a loss of a similar amount some 
time over the next several years.
    Based on information from the RTC, CBO expects that the 
land would not be sold in the near term in the absence of the 
act. We cannot predict the timing or price of such a sale under 
current law, but we expect that the land would be sold 
eventually even without this legislation. Hence, CBO estimates 
that enacting S. 1341 would increase offsetting collections to 
the RTC by $6.5 million in fiscal year 1996, thus reducing RTC 
outlays by that amount, but over time, there would be no 
significant net budgetary impact.
    The receipts obtained in 1996 would constitute proceeds 
from a non-routine asset sale. As a result, pay-as-you-go 
procedures would not apply to the legislation. Under the 1996 
budget resolution, proceeds from asset sales are counted in the 
budget totals for purposes of Congressional scoring. Under the 
Balanced Budget Act, however, proceeds from asset sales are not 
counted in determining compliance with pay-as-you-go 
requirements.
    In addition to authorizing the transfer of land, S. 1341 
also would clarify limitations on the use of the lands. For 
example, the city of Scottsdale would be permitted to extend 
and repair certain streets on its land, and part of the 
property transferred to the Salt River Community would be held 
forever as park or recreation lands. Other than the payments 
from the Salt River Community and the city of Scottsdale to the 
RTC, S. 1341 would not significantly affect the budgets of 
state or local governments.
    On November 16, 1995, CBO prepared a cost estimate for S. 
1341, the Saddleback Mountain-Arizona Settlement Act of 1995, 
as ordered reported by the Senate Committee on Indian Affairs 
on November 7, 1995. The two estimates are identical.
    If you wish further details on this estimate, we will be 
pleased to provide them. The CBO staff contact is Rachel 
Robertson.
            Sincerely,
                                         June E. O'Neill, Director.

                        changes in existing law

    If enacted, S. 1341 would make no changes in existing law.

                          departmental reports

    The Committee has received no departmental reports on S. 
1341.
                            A P P E N D I X

                              ----------                              

                          House of Representatives,
               Committee on Banking and Financial Services,
                                 Washington, DC, December 14, 1995.
Hon. Newt Gingrich,
Speaker, House of Representatives,
Washington, DC.
    Dear Mr. Speaker: I am writing concerning S. 1341, the 
Saddleback Mountain-Arizona Settlement Act of 1995, which was 
ordered to be reported by the Committee on Resources on 
December 13, 1995. This legislation has been sequentially 
referred to the Committee on Banking and Financial Services.
    In 1989 the Resolution Trust Corporation (RTC) acquired the 
Saddleback Property as receiver. After the Saddleback Property 
was noticed for sale by the RTC, a dispute between the Pima-
Maricopa Indian Community and the City of Scottsdale, Arizona 
arose concerning the future ownership, use, and development of 
the Saddleback Property. The Community and the City each filed 
litigation with respect to the dispute, but after months of 
negotiation an agreement was reached. The agreement, signed on 
September 11, 1995, includes a provision that it must be 
ratified by Congress within 180 days or it is no longer 
binding. S. 1341 would approve and ratify that agreement.
    Based on the need for timely consideration of this 
legislation, the Committee on Banking and Financial Services 
waives consideration of S. 1341 and requests to be discharged 
without prejudice from further consideration of this matter.
            Sincerely,
                                          James A. Leach, Chairman.