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Introduced in Senate (09/30/1996)

Mississippi Sioux Tribes Judgement Fund Distribution Act of 1996 - Provides for distribution to, and use of certain funds by, the Sisseton and Wahpeton Tribes of Sioux Indians.

(Sec. 4) Directs the Secretary of the Interior, one year after enactment of this Act, to distribute specified amounts to the tribal governing body of the: (1) Devils Lake Sioux Tribe of North Dakota; (2) Sisseton and Wahpeton Sioux Tribe of South Dakota; and (3) Assiniboine and Sioux Tribes of the Fort Peck Reservation in Montana. Designates the Sisseton and Wahpeton Sioux Council of the Assiniboine and Sioux Tribes as the tribal governing body of the Assiniboine and Sioux Tribes of the Fort Peck Reservation.

(Sec. 5) Directs each tribal governing body, as a condition for receiving the distributed funds, to establish a tribal trust fund for the benefit of the covered Indian tribe under its jurisdiction. Requires that each tribal governing body shall: (1) serve as the trustee of the trust fund; and (2) administer the trust fund.

(Sec. 6) Prohibits funds distributed to a covered Indian tribe from being used to make per capita payments to members of the covered Indian tribe.

Allows funds distributed to be used by a tribal governing body only for the purpose of making investments or expenditures that the tribal governing body determines to be related to: (1) economic development that is beneficial to the covered Indian tribe; (2) the development of resources of the covered Indian tribe; or (3) the development of a program that is beneficial to members of the covered Indian tribe, including educational and social welfare programs.

Directs the Secretary to conduct an annual audit.

(Sec. 7) Sets forth provisions concerning the effect of payments to a covered Indian tribe or an individual on eligibility for, or the reduction or denial of, Federal benefits. Prohibits subjecting a payment made to a covered Indian tribe or individual under this Act to Federal or State income tax.

(Sec. 8) Directs the Secretary, not later than one year after enactment, to distribute a specified amount to the lineal descendants of the Sisseton and Wahpeton Tribes of Sioux Indians.