4-0830648116 04/25/80 ICS IPMRNCZ CSP WSHB

6029634323 MGM TDRN SACATON AZ 117 04-25 0613P EST

MONORABLE JOHN MELCHER
WASHINGTON DC 20515

REC'D APR 3 1980

SERVICE •

ON BEHALF OF THE GILA RIVER INDIAN COMMUNITY I FULLY SUPPORT THE PASSAGE OF $82508, A BILL INTRODUCED BY SENATOR DE CONCINI TO AUTHORIZE THE DISTRIBUTION OF JUDGEMENT FUNDS TO THE GILA RIVER INDIAN COMMUNITY. A FEW ARE AWARE, THESES FUNDS HAVE ALREADY BEEN AWARDED BY THE INDIAN CLAIMS COMMISSION, BUT, BECAUSE A DISTRIBUTION PLAN WAS NOT SUBMITTED IN A TIMELY FASHION, LEGISLATION WAS NECESSARY FOR THE COMMUNITY TO RECEIVE THE FUNDS. A DISTRIBUTION PLAN HAS BEEN DEVELOPED AND ADOPTED BY THE GILA RIVER INDIAN COMMUNITY.

THEREFORE, WE WOULD APPRECIATE AND URGE FAVORABLE CONSIDERATION BY
YOUR COMMITTEE OF THIS BILL. THANK YOU SINCERELY

ALEXANDER LEWIS SR GOVERNOR GILA RIVER INDIAN COMMUNITY

Senator MELCHER. Our first and only witness scheduled for this hearing is Ralph Reeser, Director, Congressional and Legislative Affairs of the Bureau of Indian Affairs.

Mr. REESER. Mr. Chairman, would you like me to read my statement or just summarize it?

Senator MELCHER. Please summarize it. We will make your entire statement a part of the record at the end of your testimony.

STATEMENT OF RALPH REESER, DIRECTOR, CONGRESSIONAL AND LEGISLATIVE AFFAIRS, BUREAU OF INDIAN AFFAIRS

Mr. REESER. Mr. Chairman, S. 2508, which we support with some technical amendments, authorizes the use of funds appropriated in satisfaction of certain claims awards on behalf of the Gila River Indian Community.

The funds were appropriated in 1977 and 1979 and amounted to about $6.5 million. We are unable to utilize the Judgment Distribution Act procedure in sending a plan to the Congress because the 180-day limit in that act has expired. So, legislation is currently the only way that these funds can be made available for use by the tribe. I believe the technical amendments that we recommended have been discussed with staff. I do not believe there are any problems with any of them just clarification.

Senator MELCHER. Your testimony does not give any disposition of the funds. We have a financial analysis of the current status of the investment which was provided to us by the Bureau. Are you familiar with this?

Mr. REESER. Yes, sir.

Senator MELCHER. I think we will just make it part of the record so it will appear in the hearing.

Mr. REESER. I would like to submit for the record a copy of the tribe's resolution upon which the bill is based.

Senator MELCHER. Yes; that too, will be made a part of the record at this point.

[The distribution plan and resolutions follow:]

PLAN FOR THE USE AND DISTRIBUTION OF FUNDS
AWARDED TO THE GILA RIVER INDIAN COMMUNITY
BY THE INDIAN CLAIMS COMMISSION AND THE COURT OF CLAIMS
IN DOCKETS NO. 236-A, 236-B and 236-E

On September 30, 1976, the Indian Claims Commission granted an award of $1,575,465.90 in Dockets 236-A and B in favor of the Gila River Indian Community. appropriated by the Act of May 4, 1977, 91 Stat. 61.

Funds to cover the award were

The award is additional compensation for the leasing of 17,123.22 acres of land in 1942 by the War Relocation Authority on the Gila River Reservation, Arizona, which was used for a relocation center (camp) for the West Coast Japanese evacuees during World War II.

On March 9, 1979, the U.S. Court of Claims granted an award of $4,977,616,06 in Docket No. 236-E in favor of the Gila River Indian Community when it ordered the final award as

follows:

.IT IS ORDERED that judgment is granted
in accordance with the provisions of Pub. L. No.
95-69, 95th Congress, July 20, 1977, 91 Stat. 273,
for the Gila River Pima-Maricopa Indian Community
plaintiffs in Docket No. 236-E, in the sum of
$4,977,616.06 ($1,484,567.39 plus $1,544,044.85,
plus $1,977,616.06) plus interest at 4 percent
per annum on the sum of $1,484,567.39 from
January 1, 1979, until paid."

To satisfy this award, the sum of $4,996,000.29 was appropriated

April 24, 1979, in accordance with Section 1302 of the Supplemental Appropriation Act, (31 U.S.C. 724a), as amended by

Title II, Section 201 of the Act of March 7, 1978, 92 Stat. 107.

The plan for the use and distribution of those funds is as

follows:

To achieve the maximum investment income, the principal will be invested through the Bureau of Indian Affairs, Branch of Investments, Albuquerque, New Mexico.

Upon approval of this plan, one hundred percent (100%) of the accrued interest will be immediately advanced to the Gila River Indian Community.

Fifty percent (50%) of such funds from Dockets 236-A and B shall be used as operational costs of the Gila River Indian Community and the other fifty percent (50%) shall be distributed to the seven (7) Community districts, prorated on the basis of current population at the time such disbursements are made. Such funds will be used for the general district government operations and programs. One hundred percent (100%)

of the accrued interest from Docket 236-E shall be used as operational costs of the Gila River Indian Community. Thereafter, interest on invested funds will be advanced quarterly and used as set forth above.

While it is intended to keep the principal funds intact, the Tribe may utilize portions of the principal fund for programs, capital improvements or construction that is justified by the Tribe and approved by the Secretary of the Interior or his authorized representative.

No funds will be utilized for a per capita distribution.

The advance of all accrued interest after the plan is approved and all subsequent advances of quarterly interest or principal amounts shall be made in accordance with budgets approved by the Tribe and the Secretary of the Interior.