STATE-TRIBAL RELATIONS COMMITTEE MINUTES

The third meeting of the 2001 interim of the Legislature's State-Tribal Relations Committee was called to order by Chair Senator J.E. "Jim" Putnam at 9:00 a.m. on Monday, August 27, 2001, in the Tribal Council Chambers of the Sisseton-Wahpeton Sioux Tribe in Agency Village, South Dakota.

The following members were present: Senators Arnold Brown, Richard Hagen, J.E. "Jim" Putnam, and Ronald Volesky and Representative Thomas Van Norman. Senator Patricia de Hueck and Representatives Stan Adelstein, Jean Hunhoff, Barry Jensen, and Paul Valandra were unable to attend.

Staff member present was Tom Magedanz, Principal Research Analyst.

A list of guests present during all or part of the meeting is on file with the master minutes.

(NOTE: For the sake of continuity, the following minutes are not necessarily in chronological order. Also, all referenced documents are on file with the master minutes.)

Chair, J.E. "Jim" Putnam said that the focus of the meeting would be on economic development activities of the Sisseton-Wahpeton Sioux Tribe. In addition, the committee will hear updates on the status of the Indian Health Care Improvement Act Reauthorization in Congress (SB 212) and on issues related to the licensure and practice of Indian Health Service physicians in South Dakota. Chair Putnam expressed thanks to the Sisseton-Wahpeton Sioux Tribe for hosting the meeting of the State-Tribal Relations Committee and for allowing the committee to use the tribal council chambers.

Ms. Gail Williams, Director of Planning, Sisseton-Wahpeton Sioux Tribe, described planning functions and programs of the Tribe. These include creation and maintenance of a Geographic Information Systems (GIS) program, which involves mapping and plotting of all infrastructure and utility features on the reservation. These can then be combined with maps and files on soil and water resources maintained by the Office of Environmental Protection and can be used as a planning tool to identify all community resources and infrastructure. The planning office also has undertaken a Tribal Census Survey in addition to the 2000 U.S. Census. The Tribal Census Survey is funded by the Tribe and collects information from tribal members on health, housing, education, and employment in more detail than is available from the U.S. Census. This information is helpful in identifying needs and resources in designing development programs and is helpful as well in seeking funding and assistance from outside sources. The planning office also operates the Facility Management Program, which provides for the management of tribal buildings and facilities. The Tribe currently maintains twenty-five separate facilities, including a fire department, community center, Boys and Girls Club, Head Start, Day Care Center, and other facilities.

Mr. Doug Dolney, Economic Development Director, Sisseton-Wahpeton Sioux Tribe, discussed the Tribe?s overall economic development strategies and needs. A new Comprehensive Economic Development Strategy for the Tribe will be completed next summer. The Sisseton-Wahpeton reservation is divided into seven separate districts, and each is granted an amount of money to pursue economic development projects of their own choosing. Some of the districts have economic development projects in operation, while others are in the planning stages. The tribe currently operates three casinos, as well as a manufacturing plant, but is interested in other potential economic development opportunities, such as a home buyers program, a modular home factory, wind power generation, a distribution center for casinos, and other possibilities. He noted that many individuals wish to start businesses, but they need help in the form of business loans and technical assistance. The tribe also is involved in the acquisition of land in certain circumstances. Ms. Shannon LaBatte, Coordinator of the Business Mentorship Program, briefly described the program, which includes an economic diversification plan and a strategic plan and focuses on education and training (Sisseton-Wahpeton Community College) and the further development of infrastructure, which is necessary before significant additional economic development can proceed.

Mr. Richard Keebler, Jr., Director of the Employment Training Demonstration Program, explained to the committee that this program consolidated eight federal programs related to employment training into one unified program. Forty-five tribes nationwide participate in the Employment Training Demonstration Program, and Congress recently authorized the tribes to use ten percent of the funding for local economic development purposes. In response to a question by Senator Putnam, Mr. Keebler stated that the program contracts with the community college to do actual employment training. The program also assists in placing people with companies and pays for the training.

Mr. Tim Azure, General Manager of the Dakota Western Corporation, briefed the committee on the corporation?s background and operations. Dakota Western is a tribally-owned manufacturing firm that produces plastic film and plastic trash bags. Dakota Western has been in operation since 1989 and sells its products to the federal government?s General Services Administration and to the McDonald?s and Wendy?s corporations. The firm was funded primarily by assistance from the federal Economic Development Administration and by casino revenues, with additional grants and loans from the Bureau of Indian Affairs, the Small Business Administration, and Norwest Bank. The current facility was constructed in 1992, with an addition completed in 1995. The company employs 45 people, 70% of whom are Native American, and generates $10 million in annual revenues. Dakota Western purchases plastic pellets from suppliers in Texas and Canada and uses them to produce plastic bags of varying sizes and specifications. The company is currently considering diversifying its operations by manufacturing decking lumber made of an extruded plastic/wood composite which is related to their current production operations and practices. Mr. Azure noted that the location of the Sisseton-Wahpeton reservation near the Interstate highway and near a rail line is very important and that tribes in a more remote location would have a difficult time making an enterprise such as this profitable. He also informed the committee that the company has been involved in an ongoing dispute with the state regarding the payment of state excise taxes on materials entering the reservation from outside sources. This has caused confusion among general contractors during construction of the plant, and they decided to pay the tax even though the question of paying taxes on materials to be used on trust land is still in dispute. He would like to see this issue resolved. Mr. Azure also stated that the company has a good relationship with the tribal government and that the Tribe has been very supportive of the operation. He said that a manufacturing business provides employment opportunities and experience for many different talents and trades in addition to production workers (such as electricians, plumbers, drivers, clerical and managerial personnel) and that the payroll adds significantly to the local economy.

Ms. Rachel Brewster, an attorney who works for the Enemy Swim District of the Sisseton-Wahpeton reservation, described economic development projects undertaken by the Enemy Swim District. The Enemy Swim District?s primary economic development project is a new day care center that will open September 4, 2001. Because a number of people in the district work at the casino and in Watertown, a day care center was needed to allow them to be away from home for work. The day care center, which can accommodate twenty children and employs four people, was funded in part by a state grant form the Governor?s Office of Economic Development, as well as economic development funding from the tribe. The district has also identified five other potential projects, including transportation for people to work, a convenience store along Highway 12 near Waubay, a silk-screening project in Waubay, a multifunctional building that would accommodate several small businesses, and a water recreation attraction at Enemy Swim Lake. These projects were identified as a part of the district?s strategic economic development plan.

Mr. Glen Wilson, District Chairman, and Ms. Virginia Matts, District Councilwoman for the Long Hollow District, discussed the district?s economic development efforts. The Long Hollow District?s primary economic development project is an automotive repair and servicing business that was recently purchased and is currently in operation. The shop employs a mechanic and a bookkeeper and handles automotive minor repairs, lube, oil, tires, and other servicing. The shop is located in the Long Hollow area, which is ten to fifteen miles from Agency Village and Sisseton, and the location limits the number of potential customers. The district is looking at moving the shop to a location in or near Sisseton. Another possibility would be to use garage space in the Tekawitha Center, which was recently purchased by the Tribe. The Long Hollow District previously operated a sanitation business for a period of ten years and is considering starting another solid waste/sanitation operation.

The committee toured the Dakota Western Corporation?s manufacturing plant and was briefed on its operations and plans by General Manager Tim Azure. The committee then had lunch at the Dakota Connection Casino, which is located near Sisseton on Interstate 29, and toured that facility. The committee was briefed on casino operations by Tribal Vice-Chair Jake Thompson and met briefly with the Sisseton-Wahpeton Tribal Gaming Commission. The committee then drove to Long Hollow and was given a tour of the Long Hollow district?s automotive repair and servicing shop by District Chair Glen Wilson.

Ms. Sara DeCoteau, Health Coordinator for the Sisseton-Wahpeton Sioux Tribe, discussed the status in Congress of SB 212, the reauthorization of the Indian Health Care Improvement Act. She discussed provisions of the bill related to long-term health care for the elderly, physician licensure and practice, third-party coverage, and billing practices. She reported that the bill probably will not pass this year. The bill is expensive to fund, and the new administration has not yet taken a position on the bill. Another problem is that the Indian Health Service (IHS) already faces a huge backlog of unfunded needs under current law, making it more difficult to obtain funding for additional Indian Health Service activities, such as the provision of long-term care and nursing homes on Indian reservations. A hearing on the bill scheduled for August 2, 2001, was postponed, and the bill is likely to be amended to reduce certain costs and programs. She also presented written material related to congressional action on SB 212 to the committee (Document 1). Senator Putnam expressed disappointment at this development, because the committee had been hopeful after testimony at the last meeting that positive congressional action on long-term care was a possibility. Senator Brown noted that South Dakota?s congressional delegation has been contacted in the past by the committee on this issue and has not responded to the committee. Senator Hagen stated that he has personally carried requests to the congressional delegation on the nursing home issue with no response. Representative Van Norman, who serves as Tribal Attorney for the Cheyenne River Sioux Tribe, stated that the Cheyenne River Sioux Tribe is pursuing a federal solution for the nursing home problem and will be meeting with federal officials on SB 212 in September.

Ms. DeCoteau then discussed developments since the last meeting on the issue of Indian Health Service physician licensure and the interpretation of statutory exceptions allowing Indian Health Service physicians who are not licensed in South Dakota to practice in the course of their employment with IHS outside the physical boundaries of IHS facilities. She met with a representative of the South Dakota Board of Medical and Osteopathic Examiners and the possibility of a pilot project in the Sisseton area that would allow IHS physicians to practice outside IHS facilities in certain circumstances was discussed. This issue is also one of many topics addressed in SB 212, but the future of SB 212 in Congress is uncertain. The committee has requested a formal Attorney General?s opinion on SDCL 36-4-10, which exempts U.S. Public Health Service physicians "in the actual performance of their duties," from South Dakota licensure requirements. The Attorney General?s office is currently working on this request but has not yet issued an opinion.

Mr. Fremont Fallis of the Rosebud Sioux Tribe asked when the committee would meet to address racial profiling as discussed at the first meeting. Senator Putnam stated that the committee would set meeting dates on that topic later in the afternoon during the committee discussion portion of the meeting.

Senator Volesky distributed for the committee?s consideration copies of HB 1226, which he introduced during the 1997 Legislative Session (Document 2). The bill would establish a State-Tribal Economic Development Commission. He also requested that copies of the bill be sent to tribal presidents in South Dakota.

The committee then discussed the date and location of the next meeting, which will deal with racial profiling. The Executive Board of the Legislative Research Council at its August 6 meeting authorized the committee to hold one additional meeting. The committee tentatively scheduled the next meeting for October 17-18, 2001, in Pierre. The committee also requested that additional efforts be made to publicize this meeting beyond the normal interim study procedures because of the importance of this topic.

Senator Putnam again thanked the Sisseton-Wahpeton Sioux Tribe for hosting the meeting and for their hospitality and their efforts. He also expressed his appreciation that the committee was allowed to use the tribal council chambers for the meeting.

The meeting adjourned at 4:30 p.m.