Indian lands, the facilities needed in carrying on the activities for which a lease is sought, unless they are assured that the lease will run for a sufficient time to enable them to amortize the cost of such facilities. Under present law they cannot obtain this assurance The net result is that the prospective lessee must look elsewhere for the lands he needs, while the Indian owner loses the opportunity of entering into a contract that mav vield a substantial rental income over a long period Similarly, applications are continually being received from persons who desire to lease restricted lands for the planting of orchards or other crops which are of slow growth and which require substantial capital investment by the lessee. In this type of situation, also, a lease for 5 or 10 years is often too short to justify the necessary expenditure, so that the Indian owner, as well as the prospective lessee; is compelled to forego the profit which a long-term lease could have offered. The proposed bill is designed to resolve the foregoing difficulties by granting authority for the making of long-term leases in situations of the classes described above Typical examples of the purposes for which leases might be granted would be public airports, experiment stations. churches, schools, recreational resorts, service stations. warehouses, stockyards, grain elevators, and the growing of specialty crops of types that require a heavy investment in order to bring them into production The authority to accept or reject any proposed lease, and to determine the terms thereof, would be vested in the Indian tribe or individual Indian owning the property affected, but the Secretary of the Interior would be authorized to prescribe regulatory safeguards and to veto improvident transactions The maximum term of any lease would be 25 years, except that the parties would be permitted to include such renewal clauses as might be deemed mutually advantageous, subject to the limitation that no renewal could extend the lease for more than 25 years beyond its original term Section 2 would permit heirship property to be leased tor the purposes and terms specified by the proposed bill, in accordance with the procedures prescribed by existing law for the leasing of such property Section 3 would prohibit the payment of more than 5 years ́ rental in advance, unless otherwise specifically provided in the lease. This is because the Indian owner would, in most cases, benefit more through the receipt of periodic income payments under the lease, than through the receipt of the consideration for the whole term of the lease in a single lump-sum payment. Section 4 would repeal the act of August 9, 1946, previously mentioned, which relates to long-term eases in the State of Washington, since the enactment of general legislation on this subiect would render the provisions of that act superfluous The proposed bi does not seek to authorize leases for mining or forestry purposes. as existing law makes adequate provision for the granting of long-term contracts for these purposes However, situations occasionally occur where the use of natural resources. such as minerals or timber, is a necessary adjunct to the conduct of operations under a lease granted for other purposes. An example would be the use of gravel deposits in connection with a lease of land for a cementmixing plant Such incidental uses of natural resources might be included in a lease granted or one of the primary purposes specified in the proposed bill. The Bureau of the Budget has advised that there is no objection to the presentation of this proposed legislation to the Congress Sincerely yours, J. A. KRUG, Secretary of the Interior. A BILL To authorize the leasing of restricted Indian lands for public, religious, educational, recreational, business, and other purposes requiring the grant of ong-term leases Ise it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That any restricted Indian lands, whether tribally or individually owned, inay be leased by the Indian owners, with the approval of the Secretary of the Interior, for public, religious, educational, recreational, or business purposes, including the development or utilization of natural resources in connection with operations under such leases, and for those farming purposes which require the making of a substantial investment in the improvement of the land for the production of specialized crops as determined by said Secretary. All leases so granted shall be for a term of not to exceed twenty-five years, but leases for public, religious, educational, recreational, or business purposes may include provisions authorizing their renewal for an additional term of not to exceed twenty-five years, and all leases shall be made under such regulations as may be prescribed by the Secretary of the Interior. SEC. 2. Restricted lands of deceased Indians may be eased under this Act, for the benefit of their heirs or devisees, in the circumstances and by the persons prescribed in the Act of July 8, 1940 (54 Stat. 745, 25 U S. C., 1946 edition, sec. 380). SEC. 3. No rent or other consideration for the use of land leased under this Act shall be paid or collected more than five years in advance. unless so provided in the lease. SEC. 4. The Act of August 9, 1946 (60 Stat. 962, 25 U. S. C., 1946 edition, secs. 403b and 403c), is hereby repealed, but this repeal shall not be construed to affect the validity of any lease entered into under such Act prior to. or within ninety days after, the approval of this Act. SEC. 5. Nothing contained in this Act shall be construed to repeal any authority to lease restricted Indian lands conferred by or pursuant to any other provision of law, except as specifically provided in section 4 Pursuant to the provisions of clause 2a, rule XIII, of the Rules of the House of Representatives, proposed changes in existing law are indicated below with the matter proposed to be omitted in black brackets, and the new matter proposed to be inserted in italic. The act of August 9, 1946 (60 Stat. 962; 25 U. S. C., 1946 edition, secs. 403b and 403c): [That notwithstanding any other provisions of law, with the consent in writing of the individual Indian, association of Indians, or Indian tribe concerned, any restricted Indian lands situated within the State of Washington may be leased for religious, educational, recreational, business, or public purposes, including, but not limited to, airports, experimental station, stockyards, warehouses, and grain elevators, for periods not to exceed twenty-five years under such rules and regulations as the Secretary of the Interior may prescribe: Provided, That nothing in this Act shall be deemed to authorize such leases for the exploitation of any natural resources. [SEC. 2. Such leases may be made only by the individual Indian owner of the land or by the authorized representatives of the tribe or group of Indians to whom the land belongs, subject to the approval of the Secretary of the Interior or his authorized representative. Restricted allotments of deceased Indians, when the heirs or devisees cannot agree on a lease, may be leased for them in the manner prescribed by the Act of July 8, 1940 (54 Stat. 745, ch. 554). No lease shall be made by or on behalf of any tribe for a longer period than is or may be authorized by the tribal constitution, charter, or ordinances. Nothing contained in this Act shall be construed to repeal any authority to lease restricted lands which any Indian, Indian tribe, or official of the Department of the Interior would have in the absence of this Act.] No expenditure of Federal funds is required by this legislation. The Committee on Public Lands unanimously recommend that this bill be enacted into law. 1st Session LEASING OF RESTRICTED INDIAN LANDS No. 1200 AUGUST 5, 1949.-Committed to the Committee of the Whole House on the State of the Union and ordered to be printed Mr. MORRIS, from the Committee on Public Lands, submitted the following REPORT (To accompany H. R. 5098) The Committee on Public Lands, to whom was referred the bill (H. R. 5098), to authorize the leasing of restricted Indian lands for public, religious, educational, recreational, business, and other purposes requiring the grant of long-term leases, having considered the same, report favorably thereon with amendments and recommend that the bill do pass. The amendments are as follows: Page 2, line 4, after the word "purposes" insert the following: "with the consent of both parties". Page 2, line 6, after the word "leases" insert the following: "and renewals". Page 2, line 6, after the word "such" insert the following: "terms and". EXPLANATION OF THE BILL The over-all purpose of H. R. 5098 is to increase the period of time of leases on restricted Indian lands. Generally speaking, under existing law Indians on restricted land can lease only for a period of 5 years (there are certain exceptions as set forth in the report from the Department of the Interior). H. R. 5098 provides that restricted Indian lands whether tribally or individually owned, may be leased by the Indian owners with the approval of the Secretary of the Interior, for public, religious, educational, or business purposes, including the development of utilization of natural resources in connection with operations under such leases, and for farming purposes which require the making of a substantial investment in the improvement of the land for the production of specialized crops as determined by the Secretary. The leases so provided for shall be for a term not to exceed 25 years; however, leases for public, religious, educational, recreational, or business purposes may include, when mutually agreed to by the parties to the lease, an option of renewal for an additional period not to exceed 25 years. The testimony before the committee clearly evidenced the necessity in extending the lease period on restricted Indian lands; particularly in areas involving irrigation and those where substantial investments must be made. It is apparent that no investor will make substantial investments without some guaranty of a period of time sufficient for him to realize something on his investment. Section 2 will permit heirship property to be leased for the purposes and terms specified in the bill in accordance with the procedures of existing law with reference to such heirship property. Section 3 will prohibit the payment of more than 5 years' rent in advance unless otherwise specifically provided in the lease. Section 4 specifically repeals the act of. August 9, 1946, which relates to long-term leases in the State of Washington (with certain exceptions). H. R. 5098 does not make provision for leases for mining or for forestry purposes since existing law makes adequate provision of the granting of long-term leases for such purposes. This legislation was introduced at the request of the Department of the Interior as stated in their letter of June 3, 1949, to the Speaker of the House of Representatives and referred to this committee as Executive Communication No. 676 set forth below and made a part of this report. Hon. SAM RAYBURN, UNITED STATES DEPARTMENT OF THE INTERIOR, Speaker of the House of Representatives. OFFICE OF THE SECRETARY, Washington 25, D. C., June 3. 1945 MY DEAR MR. SPEAKER Transmitted herewith is a draft of a proposed bil to authorize the leasing of restricted Indian lands for public, religious, educational. recreational business and other purpose: requiring the rant of long-term leases I request that this proposed bill be referred to the appropriate committee for consideration, and I recommend that it be enacted The In general, Indians are precluded under existing law from easing then restricted lands for periods onger than 5 years in cases where the ands are to be used for public, religious educational recreational business or tarming purposes principa exceptions to this imitation are (a) Lands n the State of Washington may be eased for periods up to 25 years for any of the foregoing purposes, except farming, under the act of August 9, 1946 (60 Stat 962, 25 US C.. secs 403 b and 403 c); (b) ands in any State which are capable of irrigation may be eased for periods up to 10 years for farming purposes. n certain circumstances, under the act of May 18 1916 (39 Stat 128. 25 U S C., sec. 394). and the act of July 3. 1926 (44 Stat. 894. 25 US C., sec 402a) and (c) lands belonging to incorporated tribes may be eased for periods up to 10 years for such purposes as are permitted by the tribal charter, under section 17 of the act of June 18 1934 (48 Stat. 984 988 25 US C. sec 477) The Indians and the public, as well as this Department, have long felt the need for a genera aw that would authorize certain types of eases to a term considerably longer than 5 years Many requests are received by the Indians and this Department for eases of restricted lands to be used for public. religious. educational or recreational purposes In cases of this kind it is often necessary that extensive and expensive improvements be undertaken by the lessee in orde to make the land suitable for the purposes for which it is to be used There s also a growing demand for leases of restricted lands for business purposes of almost every kind In nearly all of these cases the lessee proposes to erect buildings of make other improvements of a more or less permanent nature. Obviously. prospective lessees cannot afford to invest susbtantial sums in constructing, on Indian lands, the facilities needed in carrying on the activities for which a lease is sought, unless they are assured that the lease will run for a sufficient time to enable them to amortize the cost of such facilities. Under present law they cannot obtain this assurance The net result is that the prospective lessee must look elsewhere for the lands he needs, while the Indian owner loses the opportunity of entering into a contract that mav vield a substantial rental income over a long period Similarly, applications are continually being received from persons who desire to lease restricted lands for the planting of orchards or other crops which are of slow growth and which require substantial capital investment by the lessee. In this type of situation, also, a lease for 5 or 10 years is often too short to justify the necessary expenditure, so that the Indian owner, as well as the prospective lessee, is compelled to forego the profit which a long-term lease could have offered. The proposed bill is designed to resolve the foregoing difficulties by granting authority for the making of long-term leases in situations of the classes described above Typical examples of the purposes for which leases might be granted would be public airports, experiment stations. churches, schools, recreational resorts, service stations. warehouses, stockyards, grain elevators, and the growing of specialty crops of types that require a heavy investment in order to bring them into production. The authority to accept or reject any proposed lease, and to determine the terms thereof, would be vested in the Indian tribe or individual Indian owning the property affected, but the Secretary of the Interior would be authorized to prescribe regulatory safeguards and to veto improvident transactions The maximum tern of any lease would be 25 years, except that the parties would be permitted to include such renewal clauses as might be deemed mutually advantageous, subject to the limitation that no renewal could extend the lease for more than 25 years beyond its original term Section 2 would permit heirship property to be leased tor the purposes and terms specified by the proposed bill, in accordance with the procedures prescribed by existing law for the leasing of such property Section 3 would prohibit the payment of more than 5 years rental in advance, unless otherwise specifically provided in the lease. This is because the Indian owner would, in most cases, benefit more through the receipt of periodic income payments under the lease, than through the receipt of the consideration for the whole term of the lease in a single lump-sum payment. Section 4 would repeal the act of August 9, 1946, previously mentioned, which relates to long-term eases in the State of Washington, since the enactment of general legislation on this subiect would render the provisions of that act superfluous The proposed bi does not seek to authorize leases for mining or forestry purposes, as existing law makes adequate provision for the granting of long-term contracts for these purposes However, situations occasionally occur where the use of natural resources such as minerals or timber, is a necessary adjunct to the conduct of operations under a lease granted for other purposes. An example would be the use of gravel deposits in connection with a lease of land for a cementmixing plant Such incidental uses of natural resources might be included in a lease granted or one of the primary purposes specified in the proposed bill. The Bureau of the Budget has advised that there is no objection to the presentation of this proposed legislation to the Congress Sincerely yours. J. A. KRUG, Secretary of the Interior. A BILL To authorize the leasing of restricted Indian lands for public, religious, educational, recreational, business, and other purposes requiring the grant of ong-term leases Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That any restricted Indian lands, whether tribally or individually owned, may be leased by the Indian owners, with the approval of the Secretary of the Interior, for public, religious, educational, recreational, or business purposes, including the development or utilization of natural resources in connection with operations under such leases, and for those farming purposes which require the making of a substantial investment in the improvement of the land for the production of specialized crops as determined by said Secretary. All leases so granted shall be for a term of not to exceed twenty-five years, but leases for public, religious, educational, recreational, or business purposes may include provisions authorizing their renewal for an additional term of not to |