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111th Congress                                                   Report
                        HOUSE OF REPRESENTATIVES
 2d Session                                                     111-513

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



 
                FOUNTAINHEAD PROPERTY LAND TRANSFER ACT

                                _______
                                

 June 28, 2010.--Committed to the Committee of the Whole House on the 
              State of the Union and ordered to be printed

                                _______
                                

  Mr. Rahall, from the Committee on Natural Resources, submitted the 
                               following

                              R E P O R T

                        [To accompany H.R. 1554]

      [Including cost estimate of the Congressional Budget Office]

  The Committee on Natural Resources, to whom was referred the 
bill (H.R. 1554) to take certain property in McIntosh County, 
Oklahoma, into trust for the benefit of the Muscogee (Creek) 
Nation, and for other purposes, having considered the same, 
report favorably thereon with an amendment and recommend that 
the bill as amended do pass.
  The amendment is as follows:
  Strike all after the enacting clause and insert the 
following:

SECTION 1. SHORT TITLE.

  This Act may be cited as the ``Fountainhead Property Land Transfer 
Act''.

SEC. 2. TRANSFER OF LAND; LAND INTO TRUST.

  (a) In General.--Immediately after completion of the survey required 
under subsection (b), the receipt of consideration and costs required 
under subsection (c), and satisfaction of all terms specified by the 
Secretary and the Secretary of the Army under subsection (d), 
administrative jurisdiction of the Property shall be transferred from 
the Secretary of the Army to the Secretary and the Secretary shall take 
the Property into trust for the benefit of the Tribe.
  (b) Survey.--The exact acreage and legal description of the Property 
shall be determined by a survey satisfactory to the Secretary and the 
Secretary of the Army.
  (c) Consideration; Costs.--The Tribe shall pay--
          (1) to the Secretary of the Army fair market value of the 
        Property, as determined by the Secretary of the Army; and
          (2) all costs and administrative expenses associated with the 
        transfer of administrative jurisdiction of the Property and 
        taking the Property into trust pursuant to subsection (a), 
        including costs of the survey provided for in subsection (b) 
        and any environmental remediation.
  (d) Other Terms and Conditions.--The transfer of administrative 
jurisdiction of the Property and taking the Property into trust shall 
be subject to such other terms and conditions as the Secretary and the 
Secretary of the Army consider appropriate to protect the interests of 
the United States, including reservation of flowage easements 
consistent with the Acquisition Guide Line for Flowage Easement for the 
Lake Eufaula project and other applicable policies for that project.
  (e) Definitions.--For the purposes of this section:
          (1) Property.--The term ``Property'' means, subject to valid 
        existing rights, all right, title, and interest of the United 
        States in and to the Federal land generally described as the 
        approximately 18 acres of Federal land located in McIntosh 
        County, Oklahoma, within the boundary of the Muscogee (Creek) 
        Nation and located in Northwest Quarter of Section 3, Township 
        10 North, Range 16 East, McIntosh County, Oklahoma, at Lake 
        Eufaula.
          (2) Secretary.--The term ``Secretary'' means the Secretary of 
        the Interior.
          (3) Tribe.--The term ``Tribe'' means the Muscogee (Creek) 
        Nation.
  (f) Gaming.--Gaming pursuant to the Indian Gaming Regulatory Act (25 
U.S.C. 2701 et seq.) may not be conducted on the Property, except as 
provided under section 20(b)(1)(A) of the Indian Gaming Regulatory Act 
(25 U.S.C. 2719(b)(1)(A)), notwithstanding the exception contained in 
section 20(a)(2) of that Act (25 U.S.C. 2719(a)(2)).

                          PURPOSE OF THE BILL

    The purpose of H.R. 1554 is to take certain property in 
McIntosh County, Oklahoma, into trust for the benefit of the 
Muscogee (Creek) Nation, and for other purposes.

                  BACKGROUND AND NEED FOR LEGISLATION

    The Muscogee (Creek) Nation has over 69,000 enrolled 
citizens and is headquartered in east-central Oklahoma. As part 
of their effort to create a resort hotel and casino near Lake 
Eufaula, the Nation purchased the Fountainhead Lodge and 48 
surrounding acres through a foreclosure auction in 2005. This 
property included a 188-room hotel, a recreational building, 
and some duplex cabins. A lease on 18 acres of land owned by 
the U.S. Army Corps of Engineers (Corps) came with the 
property.
    Once a survey of the purchased property was completed, it 
was determined that the recreational building was located 
entirely on the Corps' land. In 2006, representatives of the 
Creek Nation met with the Corps to discuss development of the 
property. The Corps suggested that the Corps transfer ownership 
of the leased land to the Creek Nation to assist in its future 
development as a resort.
    Enactment of H.R. 1554, and approval of their recently 
filed trust application for the 48 acres purchased in 2005, 
would allow the Nation to move forward with their plans to 
build a destination hotel and casino near Lake Eufaula. The 
bill provides that provides that after completion of a survey, 
the receipt of consideration and costs and satisfaction of 
certain terms, the Secretary of the Army shall transfer 
administrative jurisdiction of certain property to the 
Secretary of the Interior, who shall take the property into 
trust for the benefit of the Nation. The legislation requires 
the Nation to pay fair market value for the property as well as 
all costs related to the transfer. This bill also provides that 
gaming may only be conducted on the property pursuant to 
section 20(b)(1)(A) of the Indian Gaming Regulatory Act.

                            COMMITTEE ACTION

    H.R. 1554 was introduced by Rep. Dan Boren (D-OK) on March 
17, 2009 and was referred to the Committee on Natural 
Resources. The Committee held a hearing on H.R. 1554 on April 
21, 2010. Mr. George Skibine, Acting Principal Deputy Assistant 
Secretary for Indian Affairs, testified in support of this 
legislation but expressed concerns with the way the bill was 
drafted.
    On June 16, 2010 the Committee met to consider H.R. 1554. 
Rep. Boren offered an amendment in the nature of a substitute 
that provides for the involvement of the Secretary of the Army 
in making certain decisions regarding the transfer of lands, 
which addressed the drafting concerns expressed by the 
Administration. The amendment in the nature of a substitute 
also clarifies that gaming is not allowed under Section 
20(a)(2) of IGRA, known as the ``Oklahoma exception.'' The 
amendment in the nature of a substitute was agreed to by voice 
vote. H.R. 1554, as amended, was then favorably reported to the 
House of Representatives by voice vote.

            COMMITTEE OVERSIGHT FINDINGS AND RECOMMENDATIONS

    Regarding clause 2(b)(1) of rule X and clause 3(c)(1) of 
rule XIII of the Rules of the House of Representatives, the 
Committee on Natural Resources' oversight findings and 
recommendations are reflected in the body of this report.

                   CONSTITUTIONAL AUTHORITY STATEMENT

    Article I, section 8 of the Constitution of the United 
States grants Congress the authority to enact this bill.

                    COMPLIANCE WITH HOUSE RULE XIII

    1. Cost of Legislation. Clause 3(d)(2) 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 this bill. However, clause 3(d)(3)(B) 
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 402 of the 
Congressional Budget Act of 1974.
    2. Congressional Budget Act. As required by clause 3(c)(2) 
of rule XIII of the Rules of the House of Representatives and 
section 308(a) of the Congressional Budget Act of 1974, this 
bill does not contain any new budget authority, spending 
authority, credit authority, or an increase or decrease in 
revenues or tax expenditures.
    3. General Performance Goals and Objectives. As required by 
clause 3(c)(4) of rule XIII, the general performance goal or 
objective of this bill is to take certain property in McIntosh 
County, Oklahoma, into trust for the benefit of the Muscogee 
(Creek) Nation, and for other purposes.
    4. Congressional Budget Office Cost Estimate. Under clause 
3(c)(3) of rule XIII 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 this bill from the Director of the Congressional Budget 
Office:

H.R. 1554--Fountainhead Property Land Transfer Act

    H.R. 1554 would transfer 18 acres of land from the Army 
Corps of Engineers (the Corps) to the Department of the 
Interior (DOI) to be held in trust for the Muscogee Creek 
Nation. Based on information from the Corps, CBO estimates that 
implementing the legislation would increase offsetting receipts 
(a credit against direct spending) by about $2 million.
    Under the bill, the Muscogee Creek Nation would pay fair 
market value to the Corps for the purchase of 18 acres of land 
in Oklahoma, which would be held in trust by DOI. Based on 
information from the Corps, CBO estimates that the value of the 
affected land is about $2 million. The bill also would require 
the tribe to pay all costs associated with transferring 
administrative jurisdiction of the land from the Corps to DOI.
    According to the Corps, the affected land does not 
currently generate any receipts and is not expected to be sold 
or generate receipts over the next 10 years. Therefore, CBO 
estimates that implementing the legislation would increase 
offsetting receipts by about $2 million.
    The Statutory Pay-As-You-Go Act of 2010 establishes budget 
reporting and enforcement procedures for legislation affecting 
direct spending or revenues. H.R. 1554 would increase 
offsetting receipts; therefore, pay-as-you-go procedures would 
apply. The net budgetary changes that are subject to pay-as-
you-go procedures are shown in the following table.

 CBO ESTIMATE OF PAY-AS-YOU-GO EFFECTS FOR H.R. 1554, THE FOUNTAINHEAD PROPERTY LAND TRANSFER ACT, AS ORDERED REPORTED BY THE HOUSE COMMITTEE ON NATURAL
                                                               RESOURCES ON JUNE 16, 2010
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                    By fiscal year, in millions of dollars--
                                                      --------------------------------------------------------------------------------------------------
                                                        2010   2011   2012   2013   2014   2015   2016   2017   2018   2019   2020  2010-2015  2010-2020
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                       NET INCREASE OR DECREASE (-) IN THE DEFICIT

Statutory Pay-As-You-Go Impact.......................      0     -2      0      0      0      0      0      0      0      0      0        -2         -2
--------------------------------------------------------------------------------------------------------------------------------------------------------

    H.R. 1554 contains no intergovernmental or private-sector 
mandates as defined in the Unfunded Mandates Reform Act and 
would impose no costs on state, local, or tribal governments. 
The bill would benefit the Muscogee tribe and any costs to the 
tribe would be incurred voluntarily.
    The CBO staff contact for this estimate is Jeff LaFave. The 
estimate was approved by Theresa Gullo, Deputy Assistant 
Director for Budget Analysis.

                    COMPLIANCE WITH PUBLIC LAW 104-4

    This bill contains no unfunded mandates.

                           EARMARK STATEMENT

    H.R. 1554 does not contain any congressional earmarks, 
limited tax benefits, or limited tariff benefits as defined in 
clause 9 of rule XXI.

                PREEMPTION OF STATE, LOCAL OR TRIBAL LAW

    This bill is not intended to preempt any State, local or 
tribal law.

                        CHANGES IN EXISTING LAW

    If enacted, this bill would make no changes in existing 
law.