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                                                        Calendar No. 57
105th Congress                                                   Report
                                 SENATE

 1st Session                                                     105-20
_______________________________________________________________________


 
  To amend the Native American Programs Act of 1974 to extend certain 
                authorizations, and for other purposes.
                                _______
                                

                  May 21, 1997.--Ordered to be printed

_______________________________________________________________________


   Mr. Campbell, from the Committee on Indian Affairs, submitted the 
                               following

                              R E P O R T

                         [To accompany S. 459]

    The Committee on Indian Affairs to which was referred the 
bill (S. 459) to amend the Native American Programs Act of 1974 
to extend certain authorizations, and for other purposes, 
having considered the same, reports favorably thereon with an 
amendment in the nature of a substitute and recommends that the 
bill as amended do pass.
    The text of the bill, as amended, follows:
    Strike out all after the enacting clause and insert the 
following:

SECTION 1. SHORT TITLE.

  This Act may be cited as the ``Native American Programs Act 
Amendments of 1997''.

SEC. 2. AUTHORIZATIONS OF CERTAIN APPROPRIATIONS UNDER THE NATIVE 
                    AMERICAN PROGRAMS ACT OF 1974.

  Section 816 of the Native American Programs Act of 1974 (42 U.S.C. 
2992d) is amended--
          (1) in subsection (a), by striking ``for fiscal years 1992, 
        1993, 1994, and 1995.'' and inserting ``for each of fiscal 
        years 1997, 1998, 1999, and 2000.'';
          (2) in subsection (c), by striking ``for each of the fiscal 
        years 1992, 1993, 1994, 1995, and 1996,'' and inserting ``for 
        each of fiscal years 1997, 1998, 1999, and 2000,''; and
          (3) in subsection (e), by striking ``, $2,000,000 for fiscal 
        year 1993 and such sums as may be necessary for fiscal years 
        1994, 1995, 1996, and 1997.'' and inserting ``such sums as may 
        be necessary for each of fiscal years 1997, 1998, 1999, and 
        2000.''.

SEC. 3. NATIVE HAWAIIAN REVOLVING LOAN FUND.

  (a) In General.--Section 803A of the Native American Programs Act of 
1974 (42 U.S.C. 2991b-1) is amended--
          (1) in subsection (a)(1)--
                  (A) in the matter preceding subparagraph (A)--
                          (i) by striking ``award grants'' and 
                        inserting ``award a grant''; and
                          (ii) by striking ``use such grants to 
                        establish and carry out'' and inserting ``use 
                        that grant to carry out''; and
                  (B) in subparagraph (A), by inserting ``or loan 
                guarantees'' after ``make loans'';
          (2) in subsection (b)--
                  (A) in paragraph (1), by striking ``loans to a 
                borrower'' and inserting ``a loan or loan guarantee to 
                a borrower''; and
                  (B) in paragraph (2)--
                          (i) in the matter preceding subparagraph (A), 
                        by striking ``Loans made'' and inserting ``Each 
                        loan or loan guarantee made'';
                          (ii) in subparagraph (A), by striking ``5 
                        years'' and inserting ``7 years''; and
                          (iii) in subparagraph (B), by striking ``that 
                        is 2 percentage'' and all that follows through 
                        the end of the subparagraph and inserting 
                        ``that does not exceed a rate equal to the sum 
                        of--
                                  ``(I) the most recently published 
                                prime rate (as published in the 
                                newspapers of general circulation in 
                                the State of Hawaii before the date on 
                                which the loan is made); and
                                  ``(II) 3 percentage points.''; and
          (3) in subsection (f)(1), by striking ``for each of the 
        fiscal years 1992, 1993, and 1994, $1,000,000'' and inserting 
        ``for the first full fiscal year beginning after the date of 
        enactment of the Native American Programs Act Amendments of 
        1997, such sums as may be necessary''.

                                Purpose

    The purpose of S. 459, as amended, is to amend the Native 
American Programs Act of 1974, P.L. 93-644, (42 U.S.C. 2992d) 
to extend through fiscal year 2000 the authorization of 
appropriations for four grant programs administered by the 
Administration for Native Americans (ANA) within the Department 
of Health and Human Services (DHHS). The authorization for 
these programs expired in fiscal years 1994, 1995, 1996, and 
1997, respectively.

                               Background

    S. 459 was introduced on March 18, 1997 by Senators 
Campbell, Inouye, McCain, Domenici, and Murkowski. As 
introduced, the bill would reauthorize three programs 
administered by the ANA by extending through fiscal year 2000 
the authority for the following programs: general social and 
economic development grant appropriations which expired in 
fiscal year 1995; tribal environmental quality grant 
appropriations which expired in fiscal year 1996; and Native 
language preservation grants, which expired in fiscal year 
1997.
    The Committee's Substitute Amendment differs from the bill 
as introduced in that it adds a provision reauthorizing the 
Native Hawaiian Revolving Loan Fund program, specific authority 
for which expired in fiscal year 1994. Accordingly, the 
Substitute Amendment would reauthorize four separate programs 
under the Native American Programs Act of 1974 through fiscal 
year 2000.
    On April 21, 1997, the Committee received a letter from the 
Administration expressing formal support for the legislation in 
general and strong support for the continuation of the Native 
Hawaiian Revolving Loan Fund.
    On April 22, 1997, the Committee held a hearing S. 459, and 
received testimony from the Administration, Indian tribes, and 
inter-tribal consortia in support of the ANA program generally 
and supportive of the reauthorization of ANA programs through 
fiscal year 2000.
    On April 29, 1997, the Committee adopted the Substitute 
Amendment to S. 459 and ordered S. 459 to be favorably reported 
to the Senate as amended with a recommendation that it do pass.
    Though modest in appropriations, the ANA is widely 
recognized as successful in strengthening Native governments, 
fostering vigorous private sector job development, and 
contributing greatly to the self-sufficiency of Native 
communities across the nation.
    The philosophy of the ANA program is to promote self 
sufficiency and self-determination among Native communities. 
Through its competitive application and review process, Native 
communities with poorly-performing economies and high 
unemployment rates are the natural targets for ANA grant funds, 
and will enjoy competitive advantages in applying for ANA grant 
funds. Consistent with its philosophy of channeling much-needed 
capital to the neediest communities, ANA's grant award pattern 
suggests that the bulk of grant funds are provided to such 
communities.
    Though ANA funds have not been used to develop or operate 
gaming establishments, the Committee is cognizant that in an 
era of shrinking federal appropriations available to Indian 
tribes and Native communities, grant funds like those provided 
by the ANA should not be used for such purposes.
    The President's Budget Request for fiscal year 1998 
programs administered by the Administration for Native 
Americans is $34.9 million. For fiscal years 1996 and 1997, the 
appropriations for ANA grants have remained steady at 
$34,933,230. In fiscal year 1996, ANA provided more than 200 
grants for tribal governance programs and social and economic 
development initiatives. ANA also provided several dozen grants 
to assist tribal recognition and status clarification efforts, 
26 grants for projects to enhance tribal regulatory capacity in 
order to meet Federal environment requirements, 18 grants to 
support projects assisting the survival of Native American 
languages, as well as grant funds to support the Native 
Hawaiian Revolving Loan Fund.
    The principal category of funding is for Social and 
Economic Development Strategies (SEDS) grants which support 
tribal social and economic development efforts, the creation or 
expansion of business and job opportunities, and tribal 
governance efforts. Eligible grantees include the 557 
federally-recognized tribes; approximately 60 tribes that are 
either State-recognized or are seeking federal recognition; 
Indian and Alaska Native organizations; Native Hawaiian 
communities; and Native populations throughout the Pacific 
Basin.

                          Other Considerations

    Although the Administration has requested ANA funding for 
fiscal year 1998 at fiscal year 1997 levels, to-date it has not 
forwarded a bill to the Congress to reauthorize the Act.
    Under the rules governing consideration of appropriations 
bills in the House of Representatives, any bill which contains 
an unauthorized appropriation may be subject to a point of 
order. If the continuation of the ANA programs is to be 
assured, it is critical that S. 459 is enacted before the 
fiscal year 1998 Interior and Related Agencies Appropriations 
bill is considered.

                Discussion of Major Provision of S. 459

    S. 459 would reauthorize the Native American Programs Act 
of 1974 by extending authority through fiscal year 2000 for 
general ANA grant appropriations, ANA tribal environmental 
quality grant appropriations, Native Languages grants, and the 
Native Hawaiian Revolving Loan Fund program.

                          Legislative History

    S. 459 was introduced on March 18, 1997 by Senator 
Campbell, for himself and Senators Inouye, McCain, Domenici, 
and Murkowski and was referred to the Committee on Indian 
Affairs. The Committee held a hearing to receive testimony on 
S. 459 from the Administration and Indian tribes on April 22, 
1997 in Washington, D.C.

            Committee Recommendation and Tabulation of Vote

    On April 29, 1997, the Committee on Indian Affairs, in an 
open business session, considered an amendment in the nature of 
a substitute to S. 459 proposed by Chairman Campbell. By 
unanimous vote the Committee adopted the Substitute Amendment 
to S. 459 and ordered S. 459 to be favorably reported to the 
Senate as amended with a recommendation that it do pass.

                      Section-by-Section Analysis

Section 1.--Authorization of certain appropriations under the Native 
        American Programs Act of 1974

            (a) Section 816.
    (1) This subsection provides for an extension to fiscal 
year 2000 of the present authority to appropriate such sums as 
may be necessary for the purpose of carrying out the provisions 
of the Native American Programs Act of 1974 which do not 
otherwise have an express authorization of appropriation.
    (2) This subsection provides for an extension through 
fiscal year 2000 of the present authority to appropriate 
$8,000,000 for the purpose of carrying out the provisions title 
42, Section 2991b(d) of the United States Code relating to 
grants to improve tribal regulation of environmental quality.
    (3) This subsection strikes a $2 million authorization and 
provides an extension through fiscal year 2000 of ``such sums 
as may be necessary'' for the purpose of carrying out the 
provisions of Title 42, Section 2991b-3 of the United States 
Code relating to grants to preserve Native Languages.
            (b) Section 803A(f)(1).
    This subsection strikes a $1 million authorization and 
extends authority ``for the first full fiscal year beginning 
after the date of enactment'' of the bill for ``such sums as 
may be necessary'' for funds provided to carry out the 
provisions of Title 42, Section 2991b-1 of the United States 
code relating to grants to support the Native Hawaiian 
Revolving Loan Fund.
    The substitute amendment also changes the term of loans or 
loan guarantees made by the revolving loan fund from the 
current five (5) years to seven (7) years. In addition, the 
substitute would alter the interest rate chargeable on such 
loans or loan guarantees to not more than the prime rate plus 
three (3%) percent.

                   Cost and Budgetary Considerations

    The cost estimate for S. 459, as amended, as provided by 
the Congressional Budget Office, is set forth below:

                                     U.S. Congress,
                               Congressional Budget Office,
                                       Washington, DC, May 8, 1997.
Hon. Ben Nighthorse Campbell,
Chairman, Committee on Indian Affairs,
U.S. Senate, Washington, DC.
    Dear Mr. Chairman: The Congressional Budget Office has 
prepared the enclosed cost estimate for S. 459, the Native 
American Programs Act Amendments of 1997.
    If you wish further details on this estimate, we will be 
pleased to provide them. The CBO staff contact is Dorothy 
Rosenbaum.
            Sincerely,
                                 June E. O'Neill, Director.
    Enclosure.

               CONGRESSIONAL BUDGET OFFICE COST ESTIMATE

S. 459--The Native American Programs Act Amendments of 1997

    Summary: S. 459 would reauthorize programs under the Native 
American Programs Act of 1974. This act authorizes the 
Administration for Native Americans to provide grants to public 
and non-profit private agencies to promote self-sufficiency for 
Native Americans. This legislation would authorize 
appropriations for fiscal years 1997 through 2000.
    Assuming appropriation of authorized amounts, CBO estimates 
that the bill would result in additional discretionary spending 
of $120 million to $124 million over fiscal years 1997 to 2002. 
The legislation would not affect direct spending or receipts; 
therefore, pay-as-you-go procedures would not apply. The 
legislation also does not contain any intergovernmental or 
private-sector mandates as defined in the Unfunded Mandates 
Reform Act of 1995 (UMRA), and would impose no costs on state, 
local, or tribal governments.
    Estimated cost to the Federal Government: The estimated 
budgetary impact of S. 459 is shown in the table on the 
following page. Some of the authorizations in S. 459 are for 
``such sums as may be necessary.'' For the purpose of this 
estimate, CBO has projected the authorizations and outlays for 
those programs under two different sets of assumptions. In one 
case, we have projected future-year appropriations at the 1997 
funding level. In the other, we have adjusted the 1997 
appropriation for projected inflation in subsequent years.
    For the purpose of this estimate, CBO assumes that all 
amounts authorized in S. 459 for fiscal years after 1997 would 
be appropriated by the start of each fiscal year and that 
outlays would follow the historical spending patterns for the 
Native American programs.

                                    [By fiscal year, in millions of dollars]                                    
----------------------------------------------------------------------------------------------------------------
                                                                   1997    1998    1999    2000    2001    2002 
----------------------------------------------------------------------------------------------------------------
                                        SPENDING SUBJET TO APPROPRIATION                                        
                                                                                                                
Spending under current law:                                                                                     
    Budget authority............................................      35  ......  ......  ......  ......  ......
    Estimated outlays...........................................      36      27       6       1       0       0
``Such sums'' authorizations projected at the 1997 level:                                                       
    Proposed changes:                                                                                           
        Authorization level.....................................       5      39      38      38  ......  ......
        Estimated outlays.......................................       0      10      35      38      30       7
    Spending under S. 459:                                                                                      
        Authorization level \1\.................................      39      39      38      38       0       0
        Estimated outlays.......................................      36      37      41      39      30       7
``Such sums'' authorizations adjusted for inflation:                                                            
    Proposed changes:                                                                                           
        Authorization level.....................................       5      40      40      41  ......  ......
        Estimated outlays.......................................       0      10      36      39      32       7
    Spending under S. 459:                                                                                      
        Authorization level a...................................      39      40      40      41  ......  ......
        Estimated outlays.......................................      36      37      42      41      32       7
----------------------------------------------------------------------------------------------------------------
\1\ The 1997 level is the amount appropriated for that year.                                                    
                                                                                                                
Note.--Details may not add to totals because of rounding.                                                       

    The costs of this legislation fall within budget function 
500 (education, training, employment, and social services).
    The bill would authorize such sums as may be necessary for 
fiscal years 1997 to 2000 for most activities authorized under 
the Native American Programs Act. In addition, the bill would 
authorize several specific activities separately. These 
include: $8 million in each of fiscal years 1997 to 2000 for 
grants to improve tribal regulation of environmental quality, 
such sums as may be necessary for fiscal years 1997 to 2000 for 
grants to ensure the survival and continuing vitality of Native 
American languages, and such sums as may be necessary for the 
first full fiscal year beginning after the date of enactment 
for the Native Hawaiian Loan Fund.
    For fiscal year 1997, the Congress provided $35 million for 
all programs funded under the Native American Programs Act. The 
Department of Health and Human Services allocated $1 million to 
the Native Hawaiian Loan Fund, and plans to allocate about $3.5 
million for grants to improve tribal regulation of 
environmental quality and about $2 million or grants to ensure 
the survival and continuing vitality of Native American 
languages. The balance went to fund other activities authorized 
by the act. Where S. 459 authorizes such sums as may be 
necessary, CBO bases its estimates on these allocations. The 
only potential impact for fiscal year 1997 results from the 
authorization of $8 million for grants to improve tribal 
regulation of environmental quality. Only $3.5 million has been 
appropriated to day, and the estimate assumes that the 
additional amount authorized would be appropriated by the 
beginning of June.
    In addition to reauthorizing appropriations, S. 459 allows 
the Native Hawaiian Loan Fun to be used for loan guarantees in 
addition to loans, and changes the terms of the loans the fund 
may issue. CBO expects that these changes would not 
significantly change the rate at which funds are spent.
    Pay-as-you-go considerations: None.
    Estimated impact on State, local, and tribal governments: 
S. 459 contains no intergovernmental mandates as defined in 
UMRA and would impose no costs on state, local, or tribal, 
governments. Public agencies, including tribal governments, are 
eligible to receive the grants authorized by this bill, as are 
private nonprofit agencies. The Native American Programs Act 
generally requires that grantees provide at least 20 percent of 
the cost of a project funded with these grants, though that 
share may be reduced in some circumstances.
    Estimated impact on the private-sector: This bill would 
impose no new private-sector mandates as defined in UMRA.
    Estimate prepared by: Federal Cost: Dorothy Rosenbaum; 
Impact on State, Local, and Tribal Governments: Marjorie 
Miller; Impact on the Private Sector: Lesley Frymier.
    Estimate approved by: Robert A. Sunshine, Deputy Assistant 
Director for Budget Analysis.

                      Regulatory Impact Statement

    Paragraph 11(b) of rule XXVI of the Standing Rules of the 
Senate requires each report accompanying a bill to evaluate the 
regulatory and paperwork impact that would be incurred in 
carrying out the bill. The Committee believes that S. 459, as 
amended, will have a minimal impact on regulatory or paperwork 
requirements.

                        Executive Communications

    The Committee received one letter from the Department of 
Health and Human Services, which is reprinted below, providing 
the views of the Administration on S. 459 as introduced and the 
Administration's support for the continuation of the Native 
Hawaiian Revolving Loan Fund.

                The Secretary of Health and Human Services,
                                    Washington, DC, April 17, 1997.
Hon. Ben Nighthorse Campbell,
Chairman, Committee on Indian Affairs,
U.S. Senate, Washington, DC.
    Dear Mr. Chairman: This is in response to your request for 
the views of the Department of Health and Human Services on S. 
459, a bill ``To amend the Native American Programs Act of 1974 
to extend certain authorizations, and for other purposes.'' We 
appreciate the opportunity to present our comments.
    The Department supports this legislation. The Social and 
Economic Development Strategies (SEDS), Environmental Quality, 
and Native Languages Preservation programs under the Native 
American Programs Act play a vital role in supporting Indian 
and Native American self-determination and the development of 
economic, social and governance capacities of Native American 
communities. Reauthorization of these programs will promote 
projects covering a wide range of interrelated social and 
economic development efforts, such as the expansion and 
creation of businesses and jobs, youth leadership, cultural 
preservation, energy and natural resource management, fish and 
wildlife preservation, and the development of new Tribal 
constitutions and by-laws.
    However, we are very concerned that the bill does not 
reauthorize the Native Hawaiian Revolving Loan Fund (NHRLF). 
The NHRLF has been very successful in promoting economic 
development activities for Native Hawaiians. Among the 
Administration for Native Americans grantees, the NHRLF is 
considered to be an outstanding success, establishing or 
expanding Native Hawaiian-owned businesses and creating full-
time jobs. Therefore, we urge the Committee to consider 
permanently authorizing this valuable program.
    The Office of Management and Budget has advised that there 
is no objection to the presentation of this report from the 
standpoint of the Administration's program.
            Sincerely,
                                                  Donna E. Shalala.

    The Committee received written testimony from the 
Administration for Native Americans--Department of Health and 
Human Services for the hearing held on April 22, 1997. The 
written testimony from the Administration is as follows:

Statement of Gary Niles Kimble, Commissioner, Administration for Native 
Americans, Administration for Children and Families--U.S. Department of 
                       Health and Human Services

    Chairman Campbell, Vice Chairman Inouye and members of the 
Committee, it is my pleasure to come before you today in 
support of the reauthorization of the Native American Programs 
Act, administered by the Administration for Native Americans. 
There is a strong Administration commitment to address the 
critical issues that confront Tribes and Native American 
communities, as well as to help them achieve their social, 
economic and governance objectives through ANA financial 
assistance. I look forward to reporting grantee progress to 
this Committee so we can continue this important work.
    The Administration for Native Americans is a small agency 
with a big mission, which we take very seriously. The impact of 
our philosophy and policies is visible and viable in Native 
American communities across the country and the Pacific 
Islands.
    ANA serves over 550 federally-recognized Tribes (including 
over 220 Alaska Native tribal governments), about 60 Tribes 
that are State-recognized or seeking Federal recognition, 
Indian and Alaska Native organizations, Native Hawaiian 
communities, and Native populations in Guam, American Samoa, 
Palau, and the Commonwealth of the Northern Mariana Islands.
    We strongly support the reauthorization of the Native 
American Programs Act (the Act) which is before this Committee 
for consideration.
    The Social and Economic Development Strategies (SEDS), 
Environmental Quality, and Native Languages Preservation 
programs under the Native American Programs Act play a vital 
role in supporting Indian and Native American self-
determination and the development of economic, social and 
governance capacities of Native American communities. 
Reauthorization of these programs will promote projects 
covering a wide range of interrelated social and economic 
development efforts, such as the expansion and creation of 
businesses and jobs, youth leadership, cultural preservation, 
energy and natural resource management, fish and wildlife 
preservation, and the development of new Tribal constitutions 
and by-laws.
    However, we are very concerned that S. 459, a bill before 
the Committee to reauthorize the Act, does not include the 
Native Hawaiian Revolving Loan Fund (NHRLF). The NHRLF has been 
very successful in promoting economic development activities 
for Native Hawaiians. Among the Administration for Native 
Americans grantees, the NHRLF is considered to be an 
outstanding success, establishing or expanding Native Hawaiian 
owned businesses and creating full-time jobs.
    In order to provide the context for considering the 
reauthorization, I would like to present our philosophy for 
working with Native American communities as well as a 
description of the progress they have recently made.

                         philosophy and policy

    Our philosophy is to support the policies and 
implementation of self-determination and self-governance of all 
Tribes and Native American communities and organizations. 
Within this context, ANA assistance allows them to develop 
their own strategies so Native American communities can move 
their citizens towards self-sufficiency. We define a Native 
American community as self-sufficient when it can generate and 
control the resources necessary to meet its social and economic 
goals, and the needs of its members.
    This approach, which is embodied in the SEDS grant program, 
has moved many Tribal and Native programs from having Federal 
staff provide services to them, or operating federally-mandated 
programs, to developing and implementing their own discrete 
projects. Our policy recognizes the right of each individual 
Tribe and Native American group to move forward on its own 
terms, and to develop and achieve its own community 
infrastructure goals. SEDS was developed with formal Tribal and 
Native American leadership consultation. This is one example of 
how the government-to-government relationship is carried out in 
ANA.
    Our policy is based on two fundamental principles:
    (1) The local community and its leadership are responsible 
for determining its goals, setting priorities, and planning and 
implementing programs aimed at achieving those goals. Further, 
the local community is in the best position to apply its own 
cultural, political, and socio-economic values to its long-term 
strategies and programs.
    (2) Economic and social development and governance are 
interrelated. In order to move toward self-sufficiency, 
development in one area should be balanced with development in 
the others. Consequently, comprehensive development strategies 
should address all aspects of the governmental, economic, and 
social infrastructures needed to promote self-sufficient 
communities.

             governance and social and economic development

    In FY 1996, ANA awarded 223 grants for governance, social 
and economic development projects. These grants include the 
expansion and creation of businesses and jobs; youth leadership 
and entrepreneurship projects; tourism enterprises; diversified 
agricultural projects; cultural centers; fisheries; energy and 
natural resource management; and fish and wildlife 
preservation--a vital necessity to support the traditional 
lifestyle and economies of the Tribes.
    I would like to describe some of the accomplishments of the 
Tribes and Native American communities using these SEDS grants.
    Examples of innovative business enterprises developed 
through these grants include the Wai'anae Coast Community 
Alternative Development Corporation grant in Hawaii, 
facilitating a collaborative effort between the corporate board 
and 28 families to develop their community based economic 
strategy. It is a ``Backyard Aquaculture Project'' which 
combines Hawaiian family values with traditional growing 
principles. The board reinforces community management skills 
with community aquaculture operations, enabling the families to 
manage and operate the project independently.
    ANA's attention to the environment and community 
involvement is illustrated by our grants with the Native 
American Fish and Wildlife Society. The project involves eight 
Alaskan villages bordering the Copper River, a rich salmon 
fishery. A management plan for the villages' unique salmon fish 
wheels is being developed, leading to the first tribal 
administered fishery in Alaska. Another example, the Inter-
Tribal Bison Cooperative, involves 40 Tribes in 16 States 
(Alaska, California, Colorado, Idaho, Kansas, Michigan, 
Montana, North and South Dakota, Nebraska, New Mexico, 
Oklahoma, Utah, Washington, Wisconsin, and Wyoming) in a 
project committed to re-establishing buffalo herds on Indian 
lands in a manner that promotes community development, cultural 
and social enhancement, ecological restoration and spiritual 
revitalization. The Cooperative received a grant to develop 
cultural education programs, an Internet WEB page, and 
culturally relevant national standards for the buffalo 
industry. Recently, this grantee was chosen as the winner of 
Renew America's Seventh Annual Award for Environmental 
Sustainability in the Redefining Progress category and honored 
with 23 other winners at an AT&T; event in Washington, D.C.
    ANA also assists Tribes with Federal recognition and status 
clarification. In FY 1996 and to-date in FY 1997, we have 
provided grants to 35 Tribes to conduct status clarification 
projects to re-establish their trust relationship with the 
United States.
    For example, in Nevada, the Walker River Paiute's grant 
provides assistance to establish a two-person taxation 
department within the Tribal government. This allows the Tribe 
to implement the Possessory Interest Tax Ordinance, the Sales 
and Use Tax, and the Cigarette and Tobacco Tax Ordinance. As a 
result, the Tribe has improved its governmental structure and 
self-determination capabilities while benefitting from 
diversified revenues. Besides paying for the tax department's 
operating costs, the new revenue defrays the cost of providing 
essential services to Tribal members.

                     other ana funding initiatives

    In addition, ANA funds projects in other competitive areas 
that address critical needs at the Tribal and village level.

Native languages preservation and enhancement

    Native languages are one of the crucial cultural resources 
by which tribal peoples identify themselves. Preserving 
language and culture reduces alienation often experienced by 
youth, reducing the levels of substance abuse, violence and 
other self-destructive behavior. It also is significant to note 
that Tribes who observe traditional ways have much lower rates 
of alcoholism and other forms of substance abuse. Since many 
Native languages are in danger of being lost completely as 
dwindling groups of elders are the only speakers, ANA is 
funding Native Languages at a higher level in FY 1997 ($2 
million). This higher level of funding augments the 13 projects 
started in FY 1996 for the survival and continuing vitality of 
Native American use; development of specialized curricula; 
Native language training programs; language immersion camps for 
youth; and master (elder)/apprentice programs; transcribing or 
recording on audio and video tapes; oral narratives that will 
be used to develop or revise dictionaries and curricula; and 
incorporating a Tribe's language into Tribal Head Start and 
child care programs.

Environmental regulatory enhancement

    Tribes and Alaska village governments are operating 23 
environmental regulatory enhancement projects that build 
professional staff capacity to monitor and enforce Tribal 
environmental programs; develop Tribal environmental statutes 
and establish community environmental quality standards; and 
conduct the research needed to identify sources of pollution 
and determine the impact on existing environmental quality. The 
projects also help Tribes and village governments to meet 
Federal environmental requirements.

Mitigating environmental impact of DoD activities on Indian lands

    In FY 1996, 12 grants were approved for the mitigation of 
damage to Indian lands due to Department of Defense (DoD) 
activities. Briefly, the projects address mitigating the damage 
to treaty-protected spawning habitats, damage caused to Tribal 
range and forest lands, adverse effects to sacred sites and 
religious ceremonies, suspected leakage of underground storage 
tanks, and unexploded ordnance on Indian reservation lands that 
has resulted in damage to rangelands, wildlife habitats, and 
stock water wells. These grants were funded by a transfer of 
funds from the DoD to ANA.

Temporary assistance for needy families (TANF) information 
        dissemination and strategy support program

    Under the recently enacted welfare reform law federally 
recognized Tribes, the Metlakatla Indian Community and the 12 
Alaska Native regional non-profit corporations become eligible 
to operate their own Temporary Assistance for Needy Families 
(TANF) program. In FY 1997, we initiated the Information 
Dissemination and Strategy Development program, a new grant 
subset within the SEDS program, to assist Tribal and community 
leaders in their TANF participation decisionmaking. Through 
these SEDS grants, ANA grantees will disseminate information 
and develop options to share among potential Tribal TANF 
applicants. Providing these Tribes and organizations with the 
information necessary for them to make an informed decision 
about their options under the new welfare reform law supports 
the ANA philosophy of local self-determination.

The native Hawaiian revolving loan fund

    The Native Hawaiian Revolving Loan Fund (NHRLF) promotes 
economic development by providing loans to Native Hawaiians not 
available from other sources on reasonable terms and 
conditions. The program encourages Native Hawaiian business 
development and, ultimately, seeks to increase self-sufficiency 
for the Native Hawaiian community. Through FY 1996, ANA has 
provided over $7.9 million for the operation of the fund, while 
the loan administrator has furnished over $3.9 million in 
matching funds, including all administrative costs. More work 
is needed to help Hawaiian-owned businesses become viable, 
self-sustaining and a more significant part of the total State 
economic system. Therefore, we request the Committee 
permanently authorize this valuable program.

                               conclusion

    I hope I have conveyed to you the vital role that ANA plays 
in implementing a ``living'' model of the government-to-
government relationship with the Tribes and Alaska villages.
    I look forward to working with this Committee to build upon 
ANA's support of Native American self-governance and economic 
development. I would be happy to answer any questions at this 
time.

                        Changes in Existing Law

    In compliance with subsection 12 of rule XXVI of the 
Standing Rules of the Senate, the Committee notes the following 
changes in existing law (existing law proposed to be omitted is 
enclosed in black brackets, new matter printed in italic).
    Title 42, Section 2992d.
    (a) There are authorized to be appropriated for the purpose 
of carrying out the provisions of this subchapter (other than 
sections 2991b(d), 2991b-1 2991b-3 of this title, subsection 
(e) of this section, and any other provision of this subchapter 
for which there is an express authorization of appropriations), 
such sums as may be necessary [for fiscal years 1992, 1993, 
1994, and 1995.] for each of fiscal years 1997, 1998, 1999, and 
2000.
          * * * * * * *
    (c) There are authorized to be appropriated $8,000,000 [for 
each of the fiscal years 1992, 1993, 1994, 1995, and 1996,] for 
each of fiscal years 1997, 1998, 1999, and 2000, for the 
purpose of carrying out the provisions of section 2991b(d) of 
this title.
          * * * * * * *
    (e) There are authorized to be appropriated to carry out 
section 2991b-3 of this title, [$2,000,000 for fiscal year 1993 
and such sums as may be necessary for fiscal years 1994, 1995, 
1996, and 1997.] such sums as may be necessary for each of 
fiscal years 1997, 1998, 1999, and 2000.
    Title 42, Section 2991b-1(b). Loans to borrowers; 
determinations; terms; interest rate; default and collection 
procedures; prohibition on self-lending.
          (2) Loans made under subsection (a)(1)(A) of this 
        section shall be--
                  (A) for a term that does not exceed [5] 7 
                years; and
                  (B) at a rate of interest [that does is 2 
                percentage points below the average market 
                yield on the most recent public offering of 
                United States Treasury bills occurring before 
                the date on which the loan is made] ``that does 
                not exceed a rate equal to the sum of
                          (1) the most recently published prime 
                        rate (as published in the newspapers of 
                        general circulation in the State of 
                        Hawaii before the date on which the 
                        loan is made); and
                          (II) 3 percentage points.''

Title 42, Section 2291b-1(f). Authorization of appropriations; 
        investment in obligations of United States

          (1) There is authorized to be appropriated [for each 
        of the fiscal years 1992, 1993, and 1994, $1,000,000] 
        ``for the first full fiscal year beginning after the 
        date of enactment of the Native American Programs Act 
        Amendments of 1997, such sums as may be necessary''.
                            A P P E N D I X

                              ----------                              


    Statement of Wallace Coffey, Chairman/CEO Comanche Indian Tribe

    Mr. Chairman and members of the Senate Committee on Indian 
Affairs: I appreciate the opportunity to provide testimony on 
the reauthorization of grant programs as administered by the 
Administration for Native Americans.
    My name is Wallace Coffey. I am the Chairman and Chief 
Executive Officer of the Comanche Indian Tribe with 
headquarters located in Lawton, Oklahoma.
    I'm here because I represent a people. People who lived a 
long time ago and people who live in today's modern world. But 
we are the same people so I know how I feel about being a part 
of this unique group. As Chairman of the Comanche Indian Tribe, 
my relatives have prevailed upon me to be here to represent my 
ancestors, those who cannot any longer speak for themselves but 
whose presence we feel. I come to represent those yet unborn so 
they can have opportunities available to them in the years to 
come.
    This is the reason I am here. I have my interpretation of 
this legislation and I'm here to propose that we consider the 
reauthorization of this law in the best interest of everyone 
concerned and to request increased funding so opportunities can 
reach more communities, tribes and individuals.
    Some people say the most formidable challenges facing 
Indian people today are those rooted in economic conditions. I 
disagree with that because I don't think that economic 
conditions contribute to our failure, or our lack of progress 
because Indian people have survived without economic gains. I 
firmly believe that attitudes towards us and the indifference 
to our concerns are by far our greatest challenge. Dr. George 
Bernard Shaw in the ``Devils Disciple'' stated: ``The greatest 
sin toward our fellow creatures is not to hate them but to be 
indifferent to them, that is the essence of inhumanity.''
    When I was in the 2nd grade I was classified as mongolian, 
because at that time there were only two distinct classes of 
race: Black and White. In the 6th grade my classification 
changed to caucasian because it was obvious that my 
characteristics were different from mongolians. When I was in 
Jr. High I became and American Indian,when I was in high school 
I became a Native American. When in college working on my undergraduate 
education I became an indigenous group and when I was working on my 
Masters degree I became a sovereign nation. Today I'm other.
    I share this with you because I have traveled a great 
distance in my short life and I am concerned about the status 
of my children and what they're classification will be beyond 
the year 2000.
    Several years ago we had the American Indian Self-
Determination and Educational Assistance Act. While tribes 
across the United States are making every attempt to understand 
self-determination, I have seen great strides as a result of 
this federal policy. Today, the Chippewas are now called 
Ojibwa--Papago are now called Tohono-Odom, Comanches were the 
Numunu, Creeks are now calling themselves the Muskogee. The 
Winnebago are the Ho-Chungras, and the Sioux are called Lakota-
Dakota and Nakota and the Navajo are wrestling with the term 
``Dineh.''
    Over the years, ANA grants have furthered the development 
of Native American social and economic self-determination. 
Tribes have established for themselves tribal court systems to 
address any internal conflicts and to bring our court systems 
to a professional level of operation. We now have governmental 
codes and improved ordinances which allow tribes to govern 
themselves in a manner consistent with the county, state and 
federal government. We are advocating for land and water rights 
while at the same time establishing environmental codes which 
will provide for policy and regulations which impact tribal 
lands.
    I have seen the creation of Native American businesses and 
through this the employment of Indian people which has provided 
economic security for many Native American families, many of 
which started as a result of ANA funds as seed money.
    The Administration for Native Americans, since its 
inception has assisted American Indian Tribes in the 
development of programs and goals which will help them advance 
into the future while at the same time helping us improve the 
way we feel about ourselves. The area of focusing on human need 
is widely accepted on many Indian reservations and is 
reinforced by the need to foster a strong spiritual and 
cultural base.
    The Comanche Tribe currently has a Language preservation 
program funded by the Administration for Native Americans. This 
program is geared to Comanche pre-schoolers 3 to 5 years of 
age. During the Comanche Tribes 6th Annual prayer Breakfast, 
held recently during the beginning of Spring, these young 
children made a presentation and sang songs as composed by our 
ancestors which spoke of our love for Jesus Christ and of the 
promise of everlasting life.
    The hearts of our elders were touched with many shedding 
tears as they witnessed young Comanche children speaking our 
tribal language and singing songs of inspiration.
    This ANA language opportunity is especially important to 
us, the Numunu, the Comanches, because we live in Oklahoma. 
Oklahoma is a state with 37 federally recognized Indian tribes 
and we have NO reservations. We live in communities with 
everyone else. Having no reservations makes it harder for us to 
retain our culture and our language. This grant has helped to 
bring our tribal community together and to honor our fluent 
elders as they share their knowledge with our very young.
    We all say we respect our elders but we found we were not 
fully utilizing this resource. This ANA project has motivate us 
to realize that our fluent elders are dying off, we will always 
have elders, but our speakers are leaving us. This project gave 
us the opportunity to begin to create a new generation of 
Comanche speakers (Tschaw) with 3, 4 and 5 year old (Tschaw-
Tschaws) which are the great grandchildren and the term Tschaw-
Tschaw is our endearing term. This project gives us the 
motivation to utilize our elders, a precious tribal resource 
and connection with our children-our future.
    This ANA project is helping our Comanche families to 
retrieve their rightful position as the first teachers of our 
language, because this grant is helping the children's families 
to speak the language everyday and at home. It reinforces what 
we already know that just to teach it is not enough. You have 
to speak it everyday and everywhere.
    As a result of this ANA grant, our tribal members are 
planning ways to utilize our culture with families to reclaim 
the family and cultural values to stem social problems in our 
communities.
    This ANA grant's biggest impact has been the empowering of 
the community to value our language and to realize that we all 
need to take a rightful stake in our tribal lives. This ANA 
grant is helping us to go beyond self-victimization and helping 
us to take back our responsibility for our culture and our 
language because the overlying impact of this project is 
helping to preserve our culture.
    A main ingredient is in the establishment of community as a 
source of stability and security, providing the individual 
youth and parent with a sense of identity, wholeness and shared 
values. The Comanche Tribe's ``Path to Empowerment,'' is a 
strategy of planned undertakings in the attempt to modify 
certain social conditions--but through the processes generated 
within and by the community.
    It becomes apparent that we lay the groundwork for our 
children. Children of culture and color who must make the 
transition into the 21st century with as limited amount of 
conflict as our ancestors had to endure. Today, the dreams of 
our elders are becoming a reality. We have come to recognize 
that culture embodies language, religion, art, traditions, 
customs, traits and values and most importantly, ceremony and 
celebration.
    The greatest success in Indian country is the tranquility 
in the American IndianExperience. Sitting Bull once said ``If a 
man loses something that has meaning, if he goes back and looks for it 
carefully, he will find it.'' Through the ANA funded Comanche Language 
Program, Comanche men and women are learning the lessons of our 
culture. It is the renaissance of the flowering of life, the beginnings 
of wisdom and in turn reverence for spiritual strength.
    I am proud to say hello to my friend Senator Ben 
``Nighthorse'' Campbell, for he is an individual who is 
knowledgeable of his culture and that in today's modern society 
those compelling beliefs which reach back into his past begin 
to play a significant role in the development of our future and 
his as well.
    As the Chairman of the Comanche Indian Tribe, I must say 
that it matters not that a majority of our people choose to 
avoid the frustrating struggles for progress for it is well 
known in the history of all nations that we have moved forward 
on the backs of the courageous and talented few. For that I 
commend the work of the Senate Committee on Indian Affairs for 
your commitment and dedication. I thank you for giving me this 
opportunity to testify in favor of reauthorization of grant 
programs as administered by the Administration for Native 
Americans. I further encourage you to consider increased 
funding so opportunities can reach more communities, tribes and 
individuals.
    Thank you very much.
                                ------                                


   Statement of Clement J. Frost, Chairman, Southern Ute Indian Tribe

    The Administration for Native Americans, operated by the 
Administration for Youth and Families, Department of Health and 
Human Services, is a unique and particularly effective source 
of funding for social and economic development projects on 
Indian Reservations. The Southern Ute Indian Tribe has 
successfully administered ANA programs for 20 years. Each of 
these programs has made a profound, positive impact on the 
Southern Ute Tribe.
    A comprehensive study of the impact of coal development on 
the Southern Ute Reservation was completed along with an in-
depth household survey and a review of government operations in 
the early 1980s. This study provided the first detailed 
information collected by the Tribe on social and economic 
issues for it's members. The study design allowed a 
quantitative analysis of the actual impact that local issues 
were having on families. Lack of employment opportunities, 
family income, attitudes about school, and substance abuse 
issues were among those that emerged as most important to 
Tribal members. Subsequent Tribal initiatives have addressed 
many of these issues. The review of Tribal governmental 
structure led to the recommendation that the Tribe establish a 
personnel department. This task was accomplished with an ANA 
grant. With nearly 400 Tribal employees, the Tribal Personnel 
office now includes a full staff; salaries and benefits are 
among the most competitive in La Plata County.
    The Southern Utes are one of only two sovereign Indian 
Tribes in Colorado. ANA provided funding for the Tribe to 
negotiate several local and state interagency agreements which 
have made available child care, home health care, and self-
image enhancement programs for youth, by accessing state of 
Colorado programs without compromising Tribal sovereignty. ANA 
assisted the Tribe as it moved into the information age by 
supporting computer equipment purchases and training in 
financial management and data collection. In response to the 
findings of the household study, Tribal employees were provided 
with Employee Assistance Services and a voluntary Health 
Maintenance Program.
    A program which has been replicated on several other Indian 
Reservations was the Natural Resources Management Project which 
the Tribe implemented from 1987-1989. This project included a 
range inventory, water quality monitoring, incorporation of 
aerial photographs of the reservation with the GIS data base, 
and the review and revision of Tribal Codes dealing with 
resource management. The result was a 20 year management plan 
which is currently being implemented by the Tribe's Natural 
Resource Department.
    Building on it's natural resource base, the Tribe then 
decided to develop a Utilities Department. From a small 
operation providing potable water in bulk to the Town of 
Ignacio and a few Tribal homes and buildings, the Southern Ute 
Utilities Department is now a viable operation providing water, 
natural gas, sewer, and solid waste disposal services to a 
large segment of the Southern Ute/Ignacio community. With 
initial ANA support, this division has grown to one largely 
self-supporting through consumer payments for services.
    The Tribal planning and priority-setting process, which 
took place prior to the development ofa gaming operation on the 
Southern Ute Reservation, exposed the need to enhance the traditional 
part of Ute culture. Many people felt that, as the Tribe continued its 
progressive development, traditions would be lost. The Administration 
for Native Americans supported a project which resulted in written 
documentation of traditional skills and crafts, including tipi making, 
moccasin making and Ute beadwork, the summer cultural camp immersion 
program for Tribal youth in 1994 and 1995, the completion of the Museum 
exhibits and collection maintenance plans and preliminary design of a 
new facility to house the Museum and Cultural Center.
    The Tribe's current project, now close to completion, is 
the cataloging of Ute artifacts which are housed in museums all 
over the United States. Tribal museum and archival staff have 
traveled to Denver and to Washington, D.C. to inventory and 
photograph those artifacts which have been identified as Ute. 
These images have been scanned into a local archival data base 
for access by local researchers and Tribal members.
    As can be seen by this discussion, ANA funding continues to 
positively impact the Southern Ute Tribe in ways that can not 
be accomplished with other funding sources. Specific advantages 
to the Administration for Native Americans program are:
    1. Because the program is housed independently of Indian 
Health Service or the Bureau of Indian Affairs, it can remain a 
discretionary program and is not in danger of becoming an 
entitlement. This allows ANA staff and reviewers to direct 
funding to high quality projects with an excellent potential 
for success. In turn, this results in more effective use of 
federal dollars.
    2. The nature of ANA funding makes it flexible enough to be 
applied by the Tribe to almost any area of need or opportunity 
which arises. Because of this, projects are determined and 
designed locally, without a need to apply federal ``cookie 
cutter'' approaches to program design. This feature also 
enhances project success.
    3. ANA project applications are subject to a peer review 
process. Reviewers are asked to look for certain elements which 
will enhance project success. Among these is evidence of a 
local long range planning process which indicates the need for 
the proposed project. Because this is a part of the 
application, ANA does not fund projects that do not have broad-
based local support and are related to longstanding Tribal 
issues.
    In summary, the Southern Ute Tribe has appreciated the 
opportunity to participate with the Administration for Native 
Americans in the development of stronger social and economic 
infrastructure on Indian reservations. ANA funding has had a 
positive impact on the Southern Ute Reservation. In every case, 
Tribal programs have continued with other support after the end 
of ANA funding, demonstrating that the federal dollars spent on 
establishment of programs and services were well spent and have 
been matched several times over in ensuring years. On behalf of 
the Southern Ute Tribal Council, I urge continued funding of 
this unique and valuable program for Native American people.
                                ------                                


                      Statement of A. David Lester

    I am A. David Lester, Executive Director of the Council of 
Energy Resource Tribes, a position I have held for the past 15 
years.
    The purpose of the Act and the programs administered under 
the Act is to promote social and economic self-sufficiency for 
Native Americans, indigenous peoples of the fifty states and 
various territories of the U.S.
    I have come to offer three reasons why the Native American 
Programs Act Reauthorization makes sound national policy.
    First, dollar for dollar ANA is the most effective, most 
efficient and most innovative federal program serving all 
Native Americans.
    ANA is responsive to locally conceived and initiated 
programs. In its early years, ANA pioneered programs that were 
later incorporated into other federal programs. Among these are 
services to the aging, Indian controlled schools, Tribal 
employment rights, Tribal community colleges, and locally 
controlled community development.
    It has not spawned an entrenched federal bureaucracy nor 
created a dependent, subsidized job program of local 
bureaucrats as other federal agencies have.
    It is responsive to changing circumstances, changing social 
conditions and economic opportunities as defined by local 
communities and Tribes. Today ANA is at the forefront of 
helping Tribes develop institutional capacities for social and 
economic progress. Through ANA, Indian Tribes are being 
prepared to respond to the restructuring of the electric 
utility industry. Tribes are securing access to federal 
hydropower and are planning how to serve their people as 
welfare reform is beginning to unfold.
    ANA succeeds by investing not in itself but in Native 
Americans' future as defined at the local level.
    Second, the inclusion of language preservation and the 
enhancement of Tribes to protect their natural environments are 
essential elements for any Native American strategy for 
economic or social development.
    History clearly teaches that cultural continuity is 
essential for social and political stability; the loss of 
traditional values erodes social and family cohesion which 
areessential and necessary to economic and social development. Language 
preservation is part of modern concepts for social development.
    Native American values extend to our natural environment in 
a manner not well understood by non-natives. Thus for us, 
environmental protection is not just a social duty or legal 
stricture, it is a sacred imperative. If we are to develop 
economically, we need the tools to protect our environment.
    Modern domestic American economics require as part of the 
legal and social infrastructure well defined norms and 
regulations concerning waste management, abatement and 
reclamation. Indian Tribes are developing modern economies that 
require an environmental regulatory infrastructure if they are 
to attract private financing and investment.
    Environmental standards backed by regulations and codes 
form the background for investment decisions by corporations 
and banks. Without the help from ANA, many Tribes could not 
develop the necessary legal infrastructure that protects the 
environment on the one hand and that eliminates uncertainties 
over environmental liabilities for business investment on the 
other.
    Third, ANA gives local Tribal and Native American 
leadership and institutions the ability to conceive, plan and 
implement projects that give expression to local values and 
local priorities.
    Social and economic vitality for Native Americans comes 
when our communities work toward common goals, empowered by a 
common vision of who they are and who they are to become. ANA's 
social and economic development strategies respects the 
principle of local empowerment.
    Local values and priorities for social and economic 
development often converge with other communities and Tribes 
creating conditions for effective coalitions. Leadership for 
these inter-tribal organizations comes from the local Tribes, 
thus preserving local control while creating efficiencies and 
effectiveness for action.
    I have been directed by the 53 American Indian Tribes that 
make up the Council of Energy Resource Tribes and its governing 
Board of Directors to support the efforts of this committee and 
those of Commissioner Gary Kimble for the reauthorization for 
these necessary programs, and once authorized, to seek the sums 
truly needed to implement the Act.
    The money made available for implementation of the Social 
and Economic Development Strategies grant program, language 
preservation and Indian environmental protection have not been 
adequate to fund the projects worthy of support. ANA does not 
promote continued dependence on federal support and is a means 
by which less economically privileged Native American Tribes 
and communities can leverage economic and social progress from 
their own decision and actions which is the essence of the 
promise of America.