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Wyoming Legislature

Committee Meeting Summary of Proceedings

Select Committee on Tribal Relations

October 21-22, 2003

Room 302 State Capitol

Cheyenne, Wyoming

Meeting Attendance

Select Committee Members (Present)

Senator Robert Peck and Representative Harry Tipton (October 21), Cochairmen.

Senators Cale Case and Bill Vasey.

Representative Del McOmie.

Legislative Service Office

Dan J. Pauli, Director

Select Committee Members (Absent)

Representative Lorna Johnson

Joint Business Council

            Eastern Shoshone Business Council Members (Present)

Arlen Shoyo, Sr.

Ben O'Neal

Richard "Dickie" Burnett, Sr.

            Northern Arapaho  Business Council Members (Present)

Burton Hutchinson, Chairman

Carlton Underwood, Co-Chairman

Allison Sage, Jr.

Others Present

Please refer to Appendix "A" to review the Committee Sign-in Sheet for a list of other individuals who attended the meeting.

Written Meeting Materials and Handouts

All meeting materials and handouts provided to the Committee by the Legislative Service Office (LSO), public officials, lobbyists, and the public are referenced in the Meeting Materials Index, attached to the minutes. These materials are on file at the LSO and are part of the official record of the meeting.

Minutes Format Note

The primary purpose of this meeting was to obtain information relating to tax revenues collected on the Wind River Reservation, state services currently provided to Tribal members, and potential ways to enhance the provision of state services. Various state agencies were invited to outline programs they administer that affect Tribal members and to answer questions from members of the Select Committee and the Joint Business Council concerning those programs. Each agency provided written materials outlining in detail the programs they administer. Those written materials are attached as Appendices. For each of the eight state agencies making a presentation, the following  summary information is provided below:

• Designation of Agency
• Identification of agency personnel making presentation
• Reference to Appendix providing additional detailed program information
• List of relevant programs administered by the agency
• Brief re-cap of significant discussion points and issues for future consideration

Call To Order (October 21, 2003)

Co-Chairman Tipton called the meeting to order at 9:20 a.m.  After welcoming members of the Joint Business Council in attendance, he explained that this was basically an information gathering meeting aimed at getting a better understanding of revenues collected from the Wind River Reservation, state programs that affect Tribal members and needs of the citizens residing on the Reservation. He noted that various state agencies had been invited to discuss the programs they administer and to answer questions from Select Committee members and members of the Joint Business Council.

Mr. Allison Sage, Joint Business Council, provided demographic information relating to the Wind River Reservation:

• The Reservation consists of approximately 2.2 million acres and includes portions of Fremont, Hot Springs and Sublette Counties.
• There are approximately 10,000 enrolled members of the Northern Arapaho and Eastern Shoshone Tribes, and an additional 3,000 to 5,000 non-enrolled, living on the Reservation, the majority of whom reside in Fremont County.
• The Tribes are governed by two separate Tribal Councils of 6 members each who also serve together as the Joint Business Council.
• Major communities on the Reservation include: Fort Washakie; Ethete; Crowheart; and Arapaho.
• Two-thirds of the Northern Arapaho people are under age 18.

Mr. Sage outlined a number of issues of concern to the Tribes:

• The Reservation has a lot of mineral resources but is one of the most impoverished areas in the state.
• Significant tax revenues are generated on the Reservation and the Tribes want to ensure they are receiving fair treatment in the form of state services provided.
• The tribes want to develop their resources: Water, oil & gas, timber, etc., but have encountered obstacles, for example, it is hard to negotiate with oil companies to come to the Reservation because they will be taxed twice on production.
• Housing shortage is a major problem with 4 or more generations sometimes sharing the same house.
• Other problems include lack of potable water for many homes, health care issues, lack of job opportunities, etc.

Co-Chairman Tipton acknowledged that members of the Legislature share the goal of improving conditions on the Reservation but noted that issues relating to Tribal Sovereignty have sometimes hampered efforts.

Agency Presentations

Agency:          Department of Revenue

Agency Personnel in Attendance: Edmund Schmidt; Randy Bolles; Rory Horsley; Dan Noble

Detailed Information: Appendix "B"

List of Programs Administered:

• Mineral Severance Tax
• General, Specific Purpose and Lodging Taxes collected by Counties
• Sales and Use Tax
• Cigarette Tax

Recap of Discussion Points and Issues:

• The department provided data on taxes collected on the Reservation and explained distribution formulas for severance tax, sales and use tax and cigarette tax.
• The state collects severance taxes on all mineral production whether or not from Tribal lands. However, the state does not collect ad valorem tax on Tribal mineral lands.
• The Tribes could impose an ad valorem tax or sales tax but to date have imposed only a mineral severance tax.
• Severance taxes go to the state for distribution; however, the state merely determines valuation for mineral ad valorem tax which is provided to the county assessor who then applies the mill levy and distributes taxes collected among taxing districts within the county. Ad valorem taxes are imposed only on fee lands within the Reservation.
• Whether mineral production is from tribal lands is self-reported by the taxpayer.
• Tribes contend royalties paid on mineral leases on tribal lands run from 12 ½ % to 20% while royalties on fee lands in Fremont county run as high as 34%.
• Since communities such as Fort Washakie and Arapaho are not incorporated towns, they are not entitled to receive a portion of severance or sales tax revenues under the current distribution formulas. Populations in Tribal communities are included in the County population for purposes of revenue distributions. In addition to sovereignty issues, another impediment to these communities becoming incorporated is their lack of clear boundaries.
• Tribal representatives suggested that other revenue sharing mechanisms could be used to allocate revenues to the Tribes and that there are models that are being used in other states.
• JBC members expressed concern that low income energy assistance funds were being inappropriately distributed due to the fact that some Tribal members who live on the Reservation have mailing addresses in Lander or Riverton and their numbers were being attributed to those towns.
• As to sales tax: Sales on the reservation to enrolled tribal members are not subject to state sales tax. Sales to non-members are taxable. The situation is complicated by issues such as location of the Reservation boundaries. In the case of the cigarette tax, computation of sales to tribal members and non-members is estimated from total sales using an agreed upon percentage.
• In connection with State Land and Investment Board Mineral Royalty Grants, there was discussion of the problem of Tribes not being eligible to apply directly for distribution of funds but instead having to apply indirectly through a state governmental entity.
• Sen. Case suggested that several philosophical alternatives could be considered: Allow the Tribes to make direct application for distributions as now allowed under the water development program; consider the Reservation as a county and its communities as cities for purposes of distribution formulas; treat the tribes as a totally separate government and cease all tax collections, but also provide no distributions of revenue.
• Rep. McOmie asked whether to ensure fair distribution of  tax revenues it might be necessary to collect taxes from everyone then distribute.

Agency:          Department of Corrections

Agency Personnel in Attendance:  Steve Lindly; Gary Starbuck

Detailed Information: Appendix "C"

List of Programs Administered:

• Traditional Probation and Parole Field Services
• Intensive Supervision Program
• Services in conjunction with Drug Court
• State Correctional Facilities
• Contract for supervisor of religious activities for Native Americans

Recap of Discussion Points and Issues:

• The department provided data on the number of Native Americans  on probation or parole in Wyoming and numbers incarcerated in state penal facilities and associated costs. Figures provided include all those who self-reported they were Native Americans and therefore may also include those who are not from the Wind River Reservation.
• DOC has contracted with an individual to provide cultural and spiritual guidance to Native Americans in state penal institutions. There is insufficient data to determine if this has had an effect on recidivism, however, the general feeling is that it is helping.
• JBC members recognized the importance of continued contact with inmates by members of the Tribal community, elders, spiritual healers and advisors, but questioned whether this should be expanded to include both male and female spiritual counselors and those who represent the cultures of both Tribes.
• Tribal members questioned the proportionally low number of Native American DOC employees and especially probation and parole officers in Fremont County.
• Department personnel expressed their willingness to create community partnerships with the Tribal courts.
• DOC reported that the level of discrimination against Native Americans in state penal institutions appears to be low.

Agency:          Department of Education

Agency Personnel in Attendance: Quinn Carroll; Fred Hansen

Detailed Information: Appendix "D"

List of Programs Administered:

• Administration of school foundation program
• Administration of federal grant programs

Recap of Discussion Points and Issues:

• Department personnel explained in general terms the funding model for school finance and answered questions regarding the interplay between the foundation guarantee and local resources.
• Mr. Hansen reviewed additional elements of state and federal funding for each of the six school districts which have students from the Wind River Reservation (Fremont 1, 6, 14, 21, 25 and 38).
• Sen. Case explained how proposals to consolidate districts in Fremont County would result in the partial loss of federal impact aid.
• Mr. Carroll explained several initiatives that have or soon will be started on the Reservation including: Native language children's books; a pilot project focusing on a safe school environment; a cultural outdoor learning program.
• The committee discussed the possibility of including continued funding for St. Stephens school in the department of education budget rather than employing a separate bill. Sen. Case explained this is not a parochial school.
• Tribal members noted that there would be a substantial cost to the state to educate the students attending St. Stephens if the school was not there.

Agency:          Department of Health

Agency Personnel in Attendance: Deborah Fleming; Michelle McDonnell

Detailed Information: Appendix "E"

List of Programs Administered:

• Direct Health Care Services
• Enabling Services.
• Population Based Services.
• Infrastructure Building Services.

Recap of Discussion Points and Issues:

• Director Fleming explained that Direct Health Care Services are those that are generally delivered one-on-one between a health care professional and a patient in an office, home clinic or emergency room. These include: Medicaid; Prescription Drug Assistance Program; Vaccines for children; Smallpox; Rabies; Diabetes; Public Health Nursing; Developmental Disabilities Services; Aging; Substance Abuse; Mental Health Services; Sexually Transmitted Diseases.
• Director Fleming explained that Enabling Services are those that provide for access to benefits from an array of basic health care services. These include: Kid Care (State Children's Health Insurance Program); Robert Wood Johnson Foundation Grants; WIC program; End Stage Renal Disease; Maternal and Child Health Needs; Developmental Disabilities Services for Acquired Brain Injury and Targeted Case Management; Aging Services; Pharmacy Assistance.
• Population Based Services are those preventive interventions and personal health services that are developed for the entire population of the state rather than for individuals in a one-on-one situation. Programs include: Immunization; West Nile; Epidemiology; Biomonitoring; Diabetes; PHN Clinics; STD awareness campaigns; Tobacco Prevention.
• Infrastructure Building Services provide activities directed at improving and maintaining the health status of the state's population. Programs include: Facility Safety; Strategic National Stockpile (Pharmaceuticals); Bioterrorism; Statewide Advisory Committees; Office of Minority Health; Oral Health Program; Community Services Block Grants; Substance Abuse Prevention Block Grant.
• Tribal members expressed concern that certain health related services for Native Americans on the Reservation are sometimes billed to Indian Health Services while expenses for whites accessing care under identical circumstances are paid by the county.

Agency:          Department of Family Services

Agency Personnel in Attendance: Rodger McDaniel; Tony Lewis; Ken Kaz; Paul Yaksic

Detailed Information: Appendix "F"

List of Programs Administered:

• Child Protective Services
• Child and Family Services Review
• Independent Living
• TANF
• Child Support Enforcement
• Weatherization
• Child Abuse Prevention
• Crisis Care

Recap of Discussion Points and Issues:

• Director McDaniel explained the process underway to employ a consultant possessing cultural expertise to perform a review of child and family services on the Wind River Reservation. This report will hopefully identify problems with the current delivery system and provide a roadmap for improving services.
• DFS is currently contracting with the Tribes to provide child protective services; the department also provides joint training for social workers.
• Director McDaniel explained that under the TANF program both state funds and direct federal funds are provided to the Reservation.
• The state, under cooperative agreement, provides services in establishing paternity and collecting child support pending the Tribes establishing a separate program.
• There was discussion of the shortage of social workers on the Reservation and the rising costs of out-of-home placements of children. Director McDaniel agreed that caseloads on the Reservation are even higher than the heavy caseloads of social workers around the state. He also agreed that some off-reservation placements are too expensive and not appropriate. He expressed hope that the services review will lead to better ways to create partnerships, allocate funds and provide services.
• Tribal members expressed concern over the allocation of TANF grants which appeared to favor programs operating out of Cheyenne. Director McDaniel explained criteria for the grant awards and noted that most of the programs funded provide services state-wide including services that benefit individuals on the Reservation.
• Tribal members explained that part of the Tribes' dilemma is that not only is there a shortage of social workers, they are hampered in meeting their caseload demands by the fact that few residents have telephones and they have to travel long distance to personally contact clients.

Call To Order (October 22, 2003)

Co-Chairman Peck called the meeting to order at 8:40 a.m.

Agency Presentations

Agency:          Department of Game and Fish

Agency Personnel in Attendance: Bill Wichers

Detailed Information: Appendix "G"

List of Programs Administered:

• Wildlife Management on Deeded Lands within the Reservation
• Transplanting Antelope, Big Horn Sheep and Trout to the Reservation
• Law Enforcement Cooperation – Forensics
• Peregrine Falcon Surveys
• Joint Training Programs
• Education Efforts

Recap of Discussion Points and Issues:

• Game and Fish has a long history of working cooperatively with the Tribes on wildlife management issues.
• Efforts are sometimes hampered by complicated issues regarding land status.
• Tribal members expressed concern that state maps are misleading as to whether Tribal lands are in fact open to hunting by individuals who have a state license but not a Tribal license.
• Discussed issues relating to law enforcement jurisdiction; payment of deprivation costs.
• Tribal members were concerned that Game and Fish needs to take Tribal game surveys into account in setting seasons and game limits in areas bordering Tribal lands.
• Discussed potential for introduction of buffalo. Problems include encroachment on cattle grazing lands and fears concerning brucellosis.
• Tribal members also expressed concern about problems they are encountering gaining access to hunt along rivers on deeded lands.

Agency:          Department of Transportation

Agency Personnel in Attendance: Del McOmie; Dan Kline; Sharon Gostovich

Detailed Information: Appendix "H"

List of Programs Administered:

• Training
• Roadway Projects
• Bridge Projects
• Fuel Tax

Recap of Discussion Points and Issues:

• Mr. McOmie explained the existing road system and outlined the general responsibilities for construction and maintenance of roads on the Wind River Reservation.
• WYDOT has actively worked to establish better lines of communication, construction training and mentoring opportunities with the Tribes.
• Training  relating to roadway preliminary engineering and construction practices has benefited both the Tribes and the DOT. New initiatives include archeology training and an engineering and design mentoring program.
• Mr. McOmie reviewed and answered questions concerning several major roadway projects on the Wind River Reservation including: 17 Mile Road; Ethete South; Hamilton Dome Road; Diversion Dam Junction East; and Hudson-St. Stephens.
• Ms. Gostovich explained the procedures for collection of fuel tax on the reservation and the mechanism for refunding taxes paid by Native American purchasers on a percentage basis.
• Mr. Sage raised questions about a dangerous intersection near the location where the gaming facility will be constructed. Mr. McOmie stated that this will be reviewed after design documents are submitted to WYDOT.
• In accordance with the Tribal Employment Rights Ordinance (TERO) WYDOT includes special provisions in all roadway contracts on or near the Reservation to ensure that employment and contracting rights of Indians are protected.
• It was noted that a request had not yet been made regarding signage for the Sacagawea Trail. Senator Case suggested that if the Joint Business Council wishes to proceed he would assist with seeking funding from private sources.
• Possible reintroduction of the bill to create the Sand Creek Massacre Trail was discussed.

Agency:          Wyoming Business Council

Agency Personnel in Attendance: Tucker Fagan; Roger Bower

Detailed Information: Appendix "I"

List of Programs Administered:

• Community Development Block Grants
• Community Assessments
• Business Ready Community Program
• Main Street Program

Recap of Discussion Points and Issues:

• Mr. Fagan outlined the history and mission of the Wyoming Business Council (WBC).
• The primary goal of the WBC is to help provide the tools necessary to help retain existing businesses and to attract new business growth.
• The Tribes are eligible directly under the Business Ready Community program, however, under the Community Development Block Grant program, the Tribes must submit applications through a county or local government entity.
• Mr. Bower discussed potential business development opportunities for the Tribes whereby an industry might be created to use some of the Tribes' natural resources to meet its own needs. As examples he cited:
• The Navajo Hogan Project which involved the creation of a Tribal manufacturing facility to produce affordable housing units on the Navajo Nation.
• Potential joint ventures with contractors to take advantage of Tribal contract preferences.
• Possible agriculture diversification such as custom grass-fattened beef; portable slaughter facilities.
• Tourism opportunities, including agri-tourism and cultural/historical tourism.
• Natural resource development possibilities such as development of the Reservation's own gas utility.

Select Committee Action

1.         On motion by Senator Case, the Select Committee voted to adopt a resolution to be sent  to State Superintendent Trent Blankenship and the Joint Appropriations Interim Committee supporting a proposal to amend the budget already submitted to the Governor by the department of education to include continuing funding for the St. Stephens school for program enhancements in an amount at least equal to the funding provided for the school by 2003 SF 0079. (Voting Aye: Case; Peck; Vasey; McOmie; Voting No: None; Absent: L.Johnson; Tipton).

2.         As a fall back alternative, Senator Vasey moved that the Select Committee have drafted a separate bill for introduction providing funding for the St. Stephens school similar to last year's bill.  The motion passed. (Voting Aye: Case; Peck; Vasey; McOmie; Voting No: None; Absent: L.Johnson; Tipton).

3.         Senator Case moved that the Select Committee introduce a bill establishing the Sand Creek Massacre Trail. The motion passed. (Voting Aye: Case; Peck; Vasey; McOmie; Voting No: None; Absent: L.Johnson; Tipton).

4.         Upon motion by Senator Case, the Select Committee voted to send a letter to the Department of Corrections recommending that they provide additional spiritual counselors for Tribal members in state penal institutions and that in selecting counselors the department consider individuals who understand the cultural traditions of both the Eastern Shoshone and Northern Arapaho Tribes and also consider the value of providing counselors of both genders. Further, that the department actively seek to increase the number of Native American probation and parole officers and guards working in the state's penal system. The motion passed. (Voting Aye: Case; Peck; Vasey; McOmie; Voting No: None; Absent: L.Johnson; Tipton).

5.         Upon motion by Senator Case, the Select Committee voted to draft legislation allowing the Business Councils of both the Eastern Shoshone and the Northern Arapaho Tribes to apply directly for Community Development Block Grants.  The motion passed. (Voting Aye: Case; Peck; Vasey; McOmie; Voting No: None; Absent: L.Johnson; Tipton).

Closing Remarks

Members of the Select Committee and Joint Business Council generally agreed that this meeting was a good step in opening communications. Several Tribal members expressed their appreciation for the opportunity to learn about the operations of the various state agencies and to express Tribal concerns that the agencies may have been unaware of. A list of issues the Tribes would like to discuss further will be presented to the Select Committee members at a later date. The Tribes advised that they have also commissioned an update of a 1988 study comparing taxes collected on the Reservation and state services provided. The Tribal representatives agreed to make both the original report and the update available to the Select Committee.

Co-Chairman Peck thanked the Joint Business Council members for their attendance and participation.

Miscellaneous Committee Business

Judy Catchpole, Valerie Seidel and John Harrison addressed the Select Committee briefly concerning the need to provide educational opportunities for juveniles who enter the correctional system and who are in custody awaiting final disposition. See Attachment "J".

Meeting Adjournment

There being no further business, Co-Chairman Peck adjourned the meeting at 1:30 p.m., Wednesday, October 22^nd.

Respectfully submitted,

Senator Robert Peck, Co-Chairman