101st CONGRESS
2d Session
H. R. 5367
AN ACT
To provide for the renegotiation of certain leases of the Seneca Nation,
and for other purposes.
HR 5367 EH
101st CONGRESS
2d Session
H. R. 5367
AN ACT
To provide for the renegotiation of certain leases of the Seneca Nation,
and for other purposes.
Be it enacted by the Senate and House of Representatives of the United
States of America in Congress assembled,

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This Act may be cited as the `Seneca Nation Settlement Act of 1990'.

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(a) CITY OF SALAMANCA AND CONGRESSIONAL VILLAGES- The Congress finds and
declares that:
(1) Disputes concerning leases of tribal lands within the city of Salamanca
and the congressional villages, New York, have strained relations between
the Indian and non-Indian communities and have resulted in adverse economic
impacts affecting both communities.
(2) Some of the significant historical events which have led to the present
situation include--
(A) beginning in the mid-nineteenth century, several railroads obtained
grants or leases of rights of way through the Allegany Reservation without
Federal authorization or approval and on terms which did not adequately
protect the interests of the Seneca Nation;
(B) after construction of these railroads, Allegany Reservation lands
were leased to railroad employees, persons associated with the railroads,
residents of the city and farmers without Federal authorization or approval
and on terms which did not adequately protect the interests of the Seneca
Nation;
(C) none of these leases had Federal authorization or approval and,
after the courts ruled these leases invalid, Congress enacted the Act of
February 19, 1875 (18 Stat. 330), confirming existing leases of Allegany
Reservation lands, authorizing further leasing by the Seneca Nation,
and making the confirmed leases renewable for a twelve year period;
(D) the Act of September 30, 1890 (26 Stat. 558), amended the 1875 Act by
substituting a renewal term of `not exceeding ninety-nine years' for the
original renewal term of twelve years;
(E) in 1952 the Seneca Nation filed a claim with the Indian Claims Commission
against the United States for use of improper lease fees, and in 1977 a
settlement was reached regarding such claim, providing for the payment
of $600,000 to the Seneca Nation covering the period beginning in 1870 to
the end of 1946.
(3) An analysis of historic land values indicates that the payments made
under the original lease agreement and under the settlement described in
paragraph (2)(E) were well below the actual lease value of the property.
(4) The approaching expiration of the Salamanca and congressional village
leases on February 19, 1991, has created significant uncertainty and concern
on the part of the city of Salamanca and Salamanca residents, and among
the residents of the congressional villages, many of whose families have
resided on leased lands for generations.
(5) The future economic success of the Seneca Nation, city, and congressional
villages is tied to the securing of a future lease agreement.
(6) The Federal and State governments have agreed that there is a moral
responsibility on the part of both governments to help secure a fair and
equitable settlement for past inequities.
(b) PURPOSE- It is the purpose of this Act--
(1) to effectuate and support the Agreement between the city and the Seneca
Nation, and facilitate the negotiation of new leases with lessees in the
congressional villages;
(2) to assist in resolving the past inequities involving the 1890 leases
and to secure fair and equitable compensation for the Seneca Nation based on
the impact of these leases on the economy and culture of the Seneca Nation;
(3) to provide a productive environment between the Seneca Nation and
lessees for negotiating the leases provided for under the Agreement;
(4) to provide stability and security to the city and the congressional
villages, their residents, and businesses;
(5) to promote the economic growth of the city and the congressional
villages;
(6) to promote economic self-sufficiency for the Seneca Nation and its
members;
(7) to promote cooperative economic and community development efforts on
the part of the Seneca Nation and the city; and
(8) to avoid the potential legal liability on the part of the United States
that could be a direct consequence of not reaching a settlement.

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For the purposes of this Act--
(1) the term `1890 lease' means a lease made by the Seneca Nation which
is subject to--
(A) the Act entitled `An Act to authorize the Seneca Nation of New York
Indians to lease lands within the Cattaraugus and Allegany reservations,
and to confirm existing leases' approved February 19, 1875 (chap. 90,
18 Stat. 330); and
(B) the Act entitled `An Act to authorize the Seneca Nation of New York
Indians to lease lands within the Cattaraugus and Allegany Reservations,
and to confirm existing leases' approved September 30, 1890 (chap. 1132,
26 Stat. 558);
(2) the term `Agreement' means the document executed by the Seneca Nation
and the city entitled `Agreement between the Seneca Nation of Indians and
the City of Salamanca', including the appendix to the Agreement;
(3) the term `city' means the city of Salamanca, New York;
(4) the term `lessee' means the holder of an 1890 lease which either expires
in 1991 or is one of the leases listed in document 1 of the Technical
Documents, including any lessee who holds an 1890 lease by reason of
assignment, inheritance, or other manner as provided by the Act referred
to in paragraph (1)(A);
(5) the term `memorandum of understanding' means an agreement between the
State and the Seneca Nation pertaining to the payment of the funds to be
provided pursuant to this Act, which memorandum of understanding reflects
an agreement between the Seneca Nation and the State concerning a mechanism
and schedule of payments for the funds described in section 6(c);
(6) the term `Secretary' means the Secretary of the Interior;
(7) the term `Seneca Nation' means the Seneca Nation of Indians of the
Allegany, Cattaraugus, and Oil Spring Reservations;
(8) the term `State' means the State of New York;
(9) the term `Technical Documents' means the documents which comprise the
appendix to the Agreement; and
(10) the term `congressional villages' means the villages of Carrollton,
Great Valley, and Vandalia in the State of New York.

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(a) NEW LEASES- If the Seneca Nation offers new leases in accordance with
the Agreement, this Act shall apply with respect to the Seneca Nation. The
Seneca Nation shall supply copies of such leases to the Secretary and
shall certify in writing that it has supplied the Secretary with copies
of written offers to all lessees entitled to an offer.
(b) EXTINGUISHMENT OF CLAIMS- The Seneca Nation shall execute appropriate
documents relinquishing all claims against the United States, the State,
the city, the congressional villages, and all prior lessees for payment
of annual rents prior to February 20, 1991, with respect to all prior and
existing leases.
(c) EFFECTIVE DATE OF LEASES AND RELINQUISHMENTS- (1) The relinquishment
of claims against the United States shall be effective upon payment by
the United States to the Seneca Nation of the funds provided in section
6 of this Act.
(2) The offers, and any acceptances thereto, referred to in subsection
(a), and the relinquishment of claims against the State, the city, the
congressional villages, and all prior lessees for payment of annual rents
referred to in subsection (b) shall not be binding on the Seneca Nation until
after the later of the dates on which (1) Congress or (2) the legislature
of the State appropriates the amount of funds set forth in section 6 or
the Seneca Nation and the State agree upon a schedule and mechanism for
payments for funds pursuant to section 6(c). Such agreement shall render
the offers, acceptances and the relinquishment effective so long as the
payments are made as agreed upon by the Seneca Nation and the State.

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(a) SENECA NATION- The Congress finds that the Seneca Nation is solely
responsible for negotiation of the leases under the Agreement in its own
interest and approval of any such lease by the United States is not required.
(b) LESSEES- The Congress finds that--
(1) the lessees of leases with the Seneca Nation are responsible for
representing their own interest in lease negotiations with the Seneca
Nation; and
(2) nothing in this Act shall be construed to prevent the lessees from
collectively negotiating with the Seneca Nation regarding such leases,
whether through informal groups or as delegations formally sanctioned by
either the State or local governments.
(c) UNITED STATES- (1) The United States shall not serve in a capacity to
approve leases of the Seneca Nation; and
(2) Federal funds may not be obligated or expended, directly or indirectly,
for annual payments under any such lease, except for funds that may be
available under a conventional, nation-wide program.
(d) STATE- (1) The State shall not serve in a capacity to approve leases
of the Seneca Nation.
(2) State funds may not be obligated or expended, directly or indirectly,
for annual payments under any such lease.

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(a) IN GENERAL- In recognition of the findings and purposes specified in
section 2, the settlement funds provided pursuant to this Act shall be
provided by the United States and the State. The Secretary may not obligate
or expend funds provided under subsection (b) until the Secretary determines
that there is an agreed upon and signed memorandum of understanding.
(b) FUNDS PROVIDED BY UNITED STATES-
(1) CASH PAYMENT- The Secretary shall pay to the Seneca Nation the amount of
$30,000,000, which is the Federal share of the cash payment to be managed,
invested, and used by the Nation to further specific objectives of the
Nation and its members, all as determined by the Nation in accordance with
the Constitution and laws of the Nation.
(2) ECONOMIC DEVELOPMENT- (A) In addition to the amount provided under
paragraph (1), the Secretary shall pay to the Seneca Nation the amount of
$5,000,000 to be used for the economic and community development of the
Seneca Nation, including the city of Salamanca, which is an integral part of
the Seneca Nation's Allegany Reservation. Such amount shall be deposited by
the Secretary, administered, and disbursed in accordance with subparagraph
(B).
(B)(i) The sum of $2,000,000 shall be deposited in a separate interest
bearing account of the Seneca Nation. The account shall be administered,
and the principal and interest thereon disbursed, by the Seneca Nation
in accordance with a plan approved by the Council of the Seneca Nation to
promote the economic and community development of the Seneca Nation. Until
the principal is expended pursuant to such plan, the income accruing
from such sum shall be disbursed to the treasurer of the Seneca Nation
on a quarterly basis to fund tribal government operations and to provide
for the general welfare of the Seneca Nation and its members. The Seneca
Nation may in its discretion add the accrued income to the principal.
(ii) The sum of $3,000,000 shall be deposited in an escrow account which
shall be owned by the Seneca Nation. The escrow agent shall be selected
by agreement of the Seneca Nation and the city. The escrow account shall
remain in existence for a period of ten years from the date on which the
principal is deposited or until all payments provided for under section
V.D. of the Agreement have been made. The escrow account shall be held and
disbursed for economic and community development as set forth in section
V.D. of the Agreement. Upon the expiration of the ten-year period, the
$3,000,000 principal shall be disbursed in accordance with a plan approved
by the Council of the Seneca Nation to promote the economic and community
development of the Seneca Nation.
(c) FUNDS TO BE PROVIDED BY THE STATE- The State, in accordance with
its laws and regulations, shall provide the sum of $16,000,000 in cash
payments and $9,000,000 for economic or community development subject to
the provisions of the memorandum of understanding.
(d) TIME OF PAYMENTS- The payments required by this section on the part
of the United States shall be made within 30 days of the Secretary's
determination that the Seneca Nation has complied with section 4, or upon
the availability of the amounts necessary to carry out this Act, if such
determination has previously been made. If the Secretary determines that
the Seneca Nation has not complied with section 4, he shall advise the
Seneca Nation in writing of all steps it must take to comply.
(e) LIMITATION- The only amounts available to carry out this Act shall be
those amounts specifically appropriated by the Congress or the legislature
of the State to carry out this Act.

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Amounts may not be expended from--
(1) the $30,000,000 and the $5,000,000 provided by the United States under
section 6(b), and
(2) the $16,000,000 and $9,000,000 provided by the State under section 6(c),
until after the authorized officials of the Seneca Nation execute new leases
with all lessees who accept the Seneca Nation's offer of a new lease, as filed
with the Secretary under section 4(a), and execute appropriate documents
relinquishing all claims for payment of annual rents prior to February 20,
1991, with respect to such leases.

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(a) LIENS AND FORFEITURES, ETC- Subject to subsection (b), the provisions
of section 7 of the Indian Tribal Judgment Funds Use and Distribution
Act (25 U.S.C. 1407) shall apply to any payment of funds authorized to
be appropriated under this Act and made to individual members of the
Seneca Nation. None of the payments, funds, or distributions authorized,
established, or directed by this Act, and none of the income derived
therefrom, which may be received under this Act by the Seneca Nation
or individual members of the Seneca Nation, shall be subject to levy,
execution, forfeiture, garnishment, lien, encumbrance, seizure, or State
or local taxation.
(b) ELIGIBILITY FOR GOVERNMENT PROGRAMS- None of the payments, funds or
distributions authorized, established, or directed by this Act, and none of
the income derived therefrom, shall affect the eligibility of the Seneca
Nation or its members for, or be used as a basis for denying or reducing
funds under, any Federal program.
(c) LAND ACQUISITION- Land within its aboriginal area in the State or
situated within or near proximity to former reservation land may be acquired
by the Seneca Nation with funds appropriated pursuant to this Act. State
and local governments shall have a period of 30 days after notification by
the Secretary or the Seneca Nation of acquisition of, or intent to acquire
such lands to comment on the impact of the removal of such lands from real
property tax rolls of state political subdivisions. Unless the Secretary
determines within 30 days after the comment period that such lands should
not be subject to the provisions of section 2116 of the Revised Statutes
(25 U.S.C. 177), such lands shall be subject to the provisions of that Act
and shall be held in restricted fee status by the Seneca Nation. Based on
the proximity of the land acquired to the Seneca Nation's reservations,
land acquired may become a part of and expand the boundaries of the Allegany
Reservation, the Cattaraugus Reservation, or the Oil Spring Reservation in
accordance with the procedures established by the Secretary for this purpose.

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Notwithstanding any other provision of law, any action to contest the
constitutionality or validity under law of this Act shall be barred unless
the action is filed on or before the date which is 180 days after the date
of enactment of this Act. Exclusive jurisdiction over any such action is
hereby vested in the United States District Court for the Western District
of New York.

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There is authorized to be appropriated such sums as may be necessary to
carry out this Act.
Passed the House of Representatives October 10, 1990.
Attest:
Clerk.

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Seneca Nation Settlement Act of 1990 — HR. 5367

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