GOOD AFTERNOON RESPECTED CLAN MOTHERS AND TRIBAL ELDERS, TRIBAL GOVERNMENT OFFICIALS, ALASKA NATIVE LEADERS, AND REPRESENTATIVES OF TRIBAL ORGANIZATIONS. I AM ONCE AGAIN HONORED TO HAVE BEEN INVITED TO SHARE SOME THOUGHTS WITH YOU TODAY.

IN NOVEMBER, I CAME TO SANTA FE FOR YOUR MEETING. I AM TOLD IT WAS ONE OF THE LARGEST GATHERINGS THAT THE NATIONAL CONGRESS HAS HAD IN RECENT YEARS.

I BELIEVE THIS IS A MOST POSITIVE DEVELOPMENT BECAUSE WE FIND OURSELVES IN CHALLENGING TIMES THAT WILL REQUIRE US TO STAY IN CLOSE TOUCH WITH ONE ANOTHER, AND TO WORK CLOSELY TOGETHER.

THE OTHER DAY, A YOUNG JOURNALIST WHO HAS RECENTLY SPENT SOME TIME IN INDIAN COUNTRY ASKED ME WHY IT IS -- THAT ALMOST EVERYONE HE ENCOUNTERED IN THE VARIOUS RESERVATION COMMUNITIES THAT HE HAS VISITED, SEEMS TO BE ABLE TO CITE CHAPTER AND VERSE OF THE FEDERAL LAWS THAT AFFECT THE DAILY LIVES OF THE NATIVE PEOPLE OF THIS LAND. AFTER ALL, I BELIEVE YOU WOULD FIND THAT MOST AVERAGE AMERICANS WOULD NOT LIKELY KNOW WHO THEIR REPRESENTATIVES ARE IN THE CONGRESS, AND WOULD NOT LIKELY BE CONVERSANT IN THOSE MATTERS CURRENTLY UNDER CONSIDERATION IN THE CONGRESS. BUT I BELIEVE THIS WEEK WOULD SERVE AS A GOOD EXAMPLE OF WHY YOU HAVE SUCH AN EXCEPTIONAL MASTERY OF EVENTS AT THE FEDERAL LEVEL.

EARLIER THIS WEEK, I ADDRESSED THE TRIBAL GOVERNMENT AND INDIAN HOUSING AUTHORITY MEMBERS OF THE NATIONAL AMERICAN INDIAN HOUSING COUNCIL. THOSE WHO HAVE THE RESPONSIBILITY OF ADMINISTERING HOUSING PROGRAMS ARE FRUSTRATED, TO SAY THE LEAST, BECAUSE THE OFFICE OF MANAGEMENT AND BUDGET HAS NOT ACTED UPON PROPOSED REGULATIONS THAT WOULD ALLOW THE NATIONAL AMERICAN HOUSING ASSISTANCE AND SELF-DETERMINATION ACT, BETTER KNOWN AS NAHASDA, TO BE IMPLEMENTED.

BECAUSE THE REGULATIONS ARE NOT IN PLACE, THE FUNDS THAT THE CONGRESS HAS APPROPRIATED UNDER THIS NEW AUTHORITY HAVE NOT BEEN RELEASED. AND YET, BECAUSE THE OLD STATUTORY AUTHORITY HAS EXPIRED, TRIBAL GOVERNMENTS ARE EFFECTIVELY BLOCKED FROM ADDRESSING THE CRITICAL HOUSING NEEDS IN THEIR COMMUNITIES.

SOME TRIBES HAVE RESERVE FUNDS THAT THEY HAVE BEEN FORCED TO DRAW UPON TO BRIDGE THE GAP, WHILE THEY WAIT FOR O.M.B. TO ACT, BUT OTHER TRIBES ARE NOT SO FORTUNATE. IN MANY AREAS OF INDIAN COUNTRY, WE HAVE NOT SEEN THE LAST OF THE WINTER WEATHER -- AND THUS THE CAPACITY TO ASSURE THAT TRIBAL CITIZENS HAVE ADEQUATE SHELTER IS ABSOLUTELY IMPERATIVE.

ALSO THIS WEEK, THERE HAVE BEEN MEETINGS ON THE TOBACCO SETTLEMENT, AND HOW IT WILL AFFECT TRIBAL GOVERNMENTS, INDIAN SMOKE SHOPS, AND MOST IMPORTANTLY, THE YOUTH OF INDIAN COUNTRY.

WE HAVE SET A NATIONAL GOAL OF PREVENTING THE PROLIFERATION OF SMOKING BEHAVIOR. ALL OF THE STUDIES TELL US THAT SMOKING IS NOT ONLY HARMFUL BUT DEADLY. HOWEVER, THE CENTERS FOR DISEASE CONTROL ESTIMATE THAT FORTY PERCENT OF ALL ADULT AMERICAN INDIANS AND ALASKA NATIVES SMOKE AN AVERAGE OF TWENTY-FIVE OR MORE CIGARETTES DAILY. AND THE INDIAN HEALTH SERVICE ADVISES US THAT IN SOME PARTS OF THE COUNTRY, EIGHTY PERCENT OF INDIAN HIGH SCHOOL STUDENTS SMOKE OR CHEW TOBACCO. SO WE KNOW THAT ANY NATIONAL SOLUTION MUST ALSO BE APPLIED IN INDIAN COUNTRY.

ALTHOUGH TRIBAL GOVERNMENTS WERE NOT REPRESENTED IN THE TOBACCO SETTLEMENT NEGOTIATIONS, THE GOOD NEWS IS THAT ALL OF THE MEASURES NOW PENDING IN THE SENATE RECOGNIZE THE SOVEREIGN STATUS OF TRIBAL GOVERNMENTS AND THE ROLE TRIBAL GOVERNMENTS MUST PLAY IN THE ENFORCEMENT OF THE NEW LAWS, ONCE THEY ARE ENACTED. NONETHELESS, THERE ARE SOME VERY IMPORTANT CONSIDERATIONS THAT HAVE NOT BEEN ADDRESSED AND IN WHICH I WOULD EXPECT INDIAN COUNTRY WOULD WANT TO HAVE SOME INVOLVEMENT.

FOR INSTANCE, WHAT IS THE RELEVANT POPULATION FOR WHICH TRIBAL GOVERNMENTS WILL ASSUME RESPONSIBILITY -- NOT ONLY IN TERMS OF LAW ENFORCEMENT BUT IN TERMS OF RECEIVING SUFFICIENT FUNDS FROM THE SETTLEMENT MONIES TO ADDRESS THE WIDE RANGE OF HEALTH CARE PROBLEMS ASSOCIATED WITH TOBACCO SMOKING -- SUCH AS PREMATURE BIRTHS AND OTHER CONSEQUENCES OF SMOKING BY WOMEN DURING THEIR PREGNANCIES.

THE MOST ACCURATE POPULATION ESTIMATE, IT SEEMS TO ME, MIGHT BE THE INDIAN AND ALASKA NATIVE POPULATION THAT IS ELIGIBLE TO RECEIVE HEALTH CARE SERVICES FROM EITHER THE INDIAN HEALTH SERVICE OR THROUGH TRIBAL AND URBAN INDIAN HEALTH CARE DELIVERY SYSTEMS. THERE NEEDS TO BE DISCUSSION ON THIS IN INDIAN COUNTRY -- AND YET, WE NEED TO KEEP IN MIND, THAT THE COMMITTEES OF THE SENATE ARE EXPECTED TO ACT UPON THEIR PARTS OF THE TOBACCO SETTLEMENT LEGISLATION BY MID-MARCH.

IN THE SENATE, THERE HAS NOT BEEN MUCH DISCUSSION OF ANOTHER IMPORTANT ASPECT OF THE TOBACCO SETTLEMENT -- NAMELY, WHAT THE EFFECT OF UNIFORM PRICING AND TAXATION WILL BE ON THOSE TRIBES WHO DEPEND, IN LARGE PART, ON THE REVENUES THEY REALIZE FROM SMOKE SHOPS TO FUND ESSENTIAL TRIBAL GOVERNMENTAL FUNCTIONS. I AM TOLD THAT IN ONE STATE, THE STATE OF OKLAHOMA, THE REVENUES FROM TRIBAL SMOKE SHOPS IS NINETY MILLION DOLLARS STATEWIDE.

WHAT WILL REPLACE THIS VITAL INCOME STREAM FOR TRIBAL GOVERNMENTS?

I WOULD LIKE TO SEE THE LEADERS OF INDIAN COUNTRY SIT DOWN WITH THE TOBACCO COMPANIES AND COME UP WITH SOME ECONOMIC SOLUTIONS TO THIS. FOR INSTANCE, MANY OF THE TOBACCO CORPORATIONS HAVE LONG AGO DIVERSIFIED INTO OTHER PRODUCTS -- THEY OWN SUBSIDIARY COMPANIES -- SOME OWN FOOD MANUFACTURING BUSINESSES, COSMETIC AND PHARMACEUTICAL COMPANIES. PERHAPS THESE OTHER BUSINESS VENTURES HOLD THE POTENTIAL FOR FASHIONING SOME ECONOMIC SOLUTIONS FOR INDIAN COUNTRY.

CAN TOBACCO CORPORATIONS ENTER INTO ARRANGEMENTS WITH THEIR SUBSIDIARIES WHEREBY MANUFACTURING PROCESSES CAN BE LOCATED ON INDIAN LANDS, OR COMPUTER DATA ENTRY WORK COULD BE CONDUCTED ON INDIAN LANDS, OR CAN THEY COME UP WITH SOME OTHER MEANS OF GENERATING JOBS AND THE EMPLOYMENT OPPORTUNITIES THAT ARE SO BADLY NEEDED IN MOST RESERVATION COMMUNITIES? I WOULD CHALLENGE GOOD MINDS TO COME TOGETHER AND BEGIN WORKING ALONG THESE LINES.

YET ANOTHER AREA THAT INVOLVES THE FEDERAL-TRIBAL RELATIONSHIP IS THE IMPLEMENTATION AND IMPACT OF WELFARE REFORM IN INDIAN COUNTRY -- A MATTER YOU WILL BE ADDRESSING TOMORROW. I COMMEND THE NATIONAL CONGRESS OF AMERICAN INDIANS AND THE OTHER NATIONAL, REGIONAL AND TRIBAL GROUPS THAT WILL BE COMING TOGETHER TOMORROW TO FOCUS ON THESE IMPORTANT CONCERNS.

SOME OF YOU MAY HAVE READ ABOUT A RECENT REPORT COMING OUT OF TUFTS UNIVERSITY WHICH RATED THE STATES ON THEIR IMPLEMENTATION OF WELFARE REFORM, AND FOR MANY STATES, THE REPORT CARD WAS CLOSER TO COMPLETE FAILURE THAN ANY PASSING GRADE.

WE KNOW THAT THE IMPLEMENTATION OF THE "WELFARE-TO-WORK" INITIATIVE HAS FAR MANY MORE OBSTACLES IN INDIAN COUNTRY, WHERE IN MANY COMMUNITIES, THERE SIMPLY ARE NO JOBS FOR THOSE CURRENTLY ON THE WELFARE ROLLS TO MAKE A TRANSITION INTO. IN MANY CASES, WE HAVE MADE NO PROVISION FOR HOUSING AND CHILD CARE -- SO EVEN IF A SINGLE MOTHER IS ABLE TO SECURE WORK, SHE MAY -- BY VIRTUE OF HER NEW INCOME -- NO LONGER QUALIFY FOR THE HOUSING IN WHICH SHE AND HER CHILDREN ARE SHELTERED.

IF A SINGLE PARENT WASN'T WORKING, HE OR SHE WAS AT LEAST AT HOME TAKING CARE OF THEIR CHILDREN. BUT BECAUSE WE HAVEN'T PROVIDED FOR CHILD CARE FOR WORKING MOTHERS AND FATHERS IN THIS TRANSITION FROM WELFARE TO WORK -- TOO MANY INDIAN PARENTS ARE FACING A TERRIBLE CHOICE. THEY CAN WORK AND LEAVE THEIR CHILDREN AT HOME ALONE, OR THEY CAN FOREGO WORK AND LIVE ON A MEAGRE WELFARE INCOME THAT WILL SOON COME TO AN END.

WITH THE EVER-RISING RATES OF ALCOHOL AND SUBSTANCE ABUSE AMONG OUR YOUNG PEOPLE, THE GROWING PREVALENCE OF GANGS AND GANG VIOLENCE IN INDIAN COMMUNITIES, AND ALARMINGLY HIGH RATES OF TEENAGE SUICIDE -- LEAVING CHILDREN AT HOME ALONE IS NOT GOING TO BE A CHOICE THAT ANY PARENT WILL MAKE LIGHTLY.

IT IS INCUMBENT UPON US TO IDENTIFY FOR FEDERAL LAW AND POLICY MAKERS -- THE SPECIFIC WAYS IN WHICH THE WELFARE-TO-WORK INITIATIVE IS NOT WORKING IN INDIAN COUNTRY. FROM THE EXPERIENCE WE HAVE GARNERED IN JUST THIS PAST YEAR, I BELIEVE WE ARE GOING TO NEED FURTHER REFINEMENTS IN THIS LAW.

IF THE WELFARE-TO-WORK INITIATIVE IS GOING TO BE A REALITY IN INDIAN COUNTRY, YOU WILL HAVE TO DEFINE HOW IT IS TO BE EFFECTIVELY ACCOMPLISHED. NO ONE ELSE CAN, NOR SHOULD THEY, DEFINE THAT FOR YOU. FOR AS YOU HAVE OFTEN HEARD ME SAY, THE SOLUTIONS TO PROBLEMS IN INDIAN COUNTRY ARE BEST FASHIONED BY NATIVE PEOPLE -- NOT BY WELL-INTENTIONED BUREAUCRATS IN WASHINGTON OR EVEN THE STATE CAPITALS.

THIS WEEK, THE ACTIONS OF ANOTHER BRANCH OF THE FEDERAL GOVERNMENT CONTINUES TO HAVE A DRAMATIC IMPACT IN INDIAN COUNTRY -- I SPEAK OF THE UNITED STATES SUPREME COURT.

THIS WEEK, THE COURT TOLD US IN THE VENETIE CASE THAT THERE IS NO INDIAN COUNTRY IN ALASKA -- AND THE COURT'S DECISION ALSO HAS IMPORTANT IMPLICATIONS IN THE LOWER FORTY-EIGHT STATES. TWO OTHER CASES WERE ARGUED IN THE SUPREME COURT THIS WEEK -- THE CROW SEVERANCE TAX AND A CASE THAT MAY WELL EFFECT ALMOST EVERY TRIBE -- THE ISSUE IF WHETHER LANDS REACQUIRED BY A TRIBE IN FEE STATUS ARE TAXABLE.

ANOTHER GROUP OF TRIBAL LEADERS MET THIS WEEK IN WASHINGTON TO DISCUSS, AMONG OTHER THINGS, THE CHANGES TO THE INDIAN GAMING REGULATORY ACT THAT WERE MADE BY PROVISIONS IN THE INTERIOR APPROPRIATIONS BILL FOR FISCAL YEAR 1998.

I BELIEVE ONE OF THESE PROVISIONS IS ESPECIALLY PROBLEMATIC -- IT WAS ADOPTED WITHOUT THE KNOWLEDGE OF MANY OF US WHO SERVE ON THE APPROPRIATIONS COMMITTEE. THIS PROVISION SINGLES OUT ONE TRIBE -- THE MISSISSIPPI BAND OF CHOCTAW -- AND STATES THAT AS A SO-CALLED SELF-REGULATING TRIBE, THE TRIBE IS EXEMPT FROM THE LAW'S REQUIREMENT OF FEES.

WHAT IS A SELF-REGULATING TRIBE? WELL, THE INDIAN GAMING REGULATORY ACT PROVIDES AUTHORITY FOR THE NATIONAL INDIAN GAMING COMMISSION TO ISSUE A CERTIFICATE OF SELF-REGULATION BASED UPON CERTAIN DETERMINATIONS. THE RELATIONSHIP THIS CERTIFICATE OF SELF-REGULATION HAS TO FEES IS THAT THE ACT PROVIDES THAT ONCE A TRIBE RECEIVES A CERTIFICATE OF SELF-REGULATION, THE COMMISSION MAY NOT ASSESS A FEE ON A GAMING OPERATION IN EXCESS OF ONE QUARTER OF ONE PERCENT OF THE GROSS REVENUE.

I AM ADVISED THAT THE COMMISSION IS IN THE PROCESS OF PROMULGATING REGULATIONS TO IMPLEMENT THIS AUTHORITY FOR CLASS TWO AND CLASS THREE GAMING OPERATIONS, AS WELL AS REGULATIONS FOR THE NEW FEE STRUCTURE -- WHICH I UNDERSTAND WILL BE PUBLISHED IN THE FEDERAL REGISTER NEXT WEEK. I AM ALSO TOLD THAT, IN RECENT WEEKS, THE COMMISSION HAS BEEN ALMOST DELUGED WITH LETTERS AND CONTACTS FROM NUMEROUS TRIBES WHO ASSERT THAT THEY HAVE THE SAME STATUS AS THE MISSISSIPPI CHOCTAW AND THUS SHOULD BE EXEMPT FROM FEES.

AS THE PRIMARY SPONSOR OF THE INDIAN GAMING REGULATORY ACT, AND AS ONE WHO AS SERVED AS YOUR ADVOCATE IN THE ARENA OF GAMING, I WOULD FEEL REMISS WERE I TO FAIL TO SHARE WITH YOU MY THOUGHTS ON THESE MATTERS.

FIRST AND FOREMOST, FOR THOSE OF YOU WHO MAY NOT KNOW THIS, WE ARE OPERATING IN A CLIMATE THAT HAS BECOME VERY HOSTILE TO GAMING GENERALLY, AND HOSTILE TO INDIAN GAMING IN PARTICULAR. ONE NEED ONLY OBSERVE THE STATEMENTS THAT WERE MADE BY THE MEMBERS OF THE HOUSE OVERSIGHT COMMITTEE THAT RECENTLY HELD HEARINGS ON THE HUDSON DOG TRACK MATTER -- MOST EVERY MEMBER, WITHOUT REGARD TO PARTY AFFILIATION -- APPARENTLY FELT THAT THEY HAD TO EXPRESS THEIR OPPOSITION TO GAMING. THESE WERE NOT THE IDLE STATEMENTS OF A FEW HOUSE MEMBERS -- IT IS A PERSPECTIVE THAT IS WIDELY-SHARED.

SECONDLY, JUST AS I SPOKE OUT AGAINST A PROVISION OF AN OMNIBUS APPROPRIATIONS BILL THAT SINGLED OUT ONE TRIBE FOR SPECIAL TREATMENT -- A PROVISION WHICH NOW PREVENTS THE NARRAGANSETT INDIAN TRIBE FROM CONDUCTING GAMING UNDER THE INDIAN GAMING REGULATORY ACT -- I AM NOT COMFORTABLE WITH A PROVISION THAT SINGLES OUT ANOTHER TRIBE FOR SPECIAL TREATMENT. I HAVE ADVISED THE COMMISSION THAT IN MY VIEW, IF THEY WERE TO PROCEED WITH ANNOINTING THE MISSISSIPPI CHOCTAW TRIBE WITH A SPECIAL STATUS, THERE WOULD LIKELY BE SCORES OF LAWSUITS BROUGHT BY OTHER TRIBES WHO SEE THEMSELVES AS SIMILARLY-SITUATED. FRANKLY, I DON'T THINK WE HAVE ENOUGH MONEY IN THE U.S. TREASURY TO DEFEND THOSE LAWSUITS, AND MORE IMPORTANTLY, I DON'T THINK THAT IT WOULD BE GOOD FOR INDIAN GAMING.

I WOULD PREFER TO SEE REGULATIONS PROMULGATED SO THAT ALL TRIBES WHO MAY QUALIFY -- WILL HAVE THE OPPORTUNITY TO APPLY FOR A CERTIFICATE OF SELF-REGULATION. THIS IS WHAT WE CALL THE EQUAL PROTECTION OF THE LAWS. IT IS A FUNDAMENTAL PRINCIPLE OF OUR SYSTEM OF GOVERNMENT THAT LAWS SHOULD BE APPLIED EQUALLY TO ALL.

I THINK THE MORE IMPORTANT ISSUE IS WHETHER AND HOW THE COMMISSION IS TO BE FUNDED. IN A CLIMATE IN WHICH INDIAN GAMING IS UNDER SHARP ATTACK, IN MY VIEW, THE COMMISSION STANDS AS YOUR BULWARK AGAINST THE DEMISE OF INDIAN GAMING. PUT ANOTHER WAY, THE SURVIVAL OF INDIAN GAMING WILL DEPEND UPON A PUBLIC PERCEPTION THAT INDIAN GAMING IS WELL-REGULATED -- THAT THE PUBLIC HEALTH AND SAFETY WILL AT ALL TIMES BE ASSURED -- THAT THE GAMING CONDUCTED IN INDIAN COUNTRY IS HONEST AND UNTAINTED BY CRIME OR SELF-DEALING.

NO MATTER HOW MANY TIMES THE MANTRA IS CHANTED -- AND I AM SPEAKING OF THE MANTRA THAT "INDIAN GAMING IS THE MOST HEAVILY REGULATED GAMING IN THE UNITED STATES" -- WHAT MATTERS IS NOT WHAT WE ARE TELLING EACH OTHER ABOUT THE REGULATION OF INDIAN GAMING. WHAT MATTERS IS THE PUBLIC'S PERCEPTION AND HOW THAT PERCEPTION IS REFLECTED IN THE ACTIONS OF LAWMAKERS.

THERE AS THOSE IN THE CONGRESS, AND I SUPPOSE I SHOULD INCLUDE MYSELF AS ONE OF THEM -- WHO LOOK AT THE REGULATORY SYSTEMS THAT ARE IN PLACE IN NEVADA AND NEW JERSEY -- AND CONCLUDE THAT THESE SYSTEMS ARE FAR MORE EXTENSIVE AND PERHAPS FAR MORE ONEROUS, THAN MOST OF THE REGULATORY SYSTEMS IN INDIAN COUNTRY. I KNOW THERE ARE THOSE WHO WOULD DEBATE ME ON THIS TOPIC, HOWEVER, I THINK WE WOULD ONLY BE DISTRACTING OURSELVES FROM THE MORE IMPORTANT DYNAMIC. PARTICULARLY IN A TIME WHEN INDIAN GAMING IS UNDER ATTACK, THERE MUST BE A STRONG FEDERAL REGULATORY PRESENCE IN INDIAN GAMING. THE COMMISSION IS THAT PRESENCE, AND IT MUST BE ADEQUATELY FUNDED TO CARRY OUT ITS WORK.

IN THE COMMITTEE'S BUDGET OVERSIGHT HEARING EARLIER THIS WEEK, SOME SUGGESTED THAT THERE OUGHT TO BE A FORMULA FOR THE ASSESSMENT OF FEES, SO THAT THE BURDEN DOES NOT FALL EXCLUSIVELY ON THOSE TRIBAL GAMING OPERATIONS THAT ARE THE LEAST ABLE TO BEAR THE BURDEN. I DON'T HAVE A QUARREL WITH A FORMULA -- I DO HOWEVER BELIEVE THAT IT IS IN THE INTEREST OF ALL GAMING TRIBES TO HAVE A COMMISSION THAT IS CAPABLE OF CARRYING OUT ITS RESPONSIBILITIES UNDER THE LAW. I BELIEVE THE LAW IS QUITE CLEAR THAT THOSE RESPONSIBILITIES DO NOT END WHEN A TRIBE BECOMES SELF-REGULATING.

AND IF THERE IS ANYONE HERE WHO THINKS THAT THE POLITICAL CLIMATE IN THE CONGRESS IS SUCH THAT INDIAN GAMING WOULD BE ALLOWED TO CONTINUE IF THE FEDERAL REGULATORY PRESENCE, THE COMMISSION, WERE WIPED OUT BECAUSE THERE IS NO FUNDING MADE AVAILABLE TO SUPPORT IT'S OPERATIONS -- I WOULD HAVE TO TELL YOU THAT MY HONEST ASSESSMENT, AS SOMEONE WHO HAS SERVED IN THE CONGRESS FOR ALMOST FORTY YEARS, IS THAT IT JUST WON'T HAPPEN.

I AM QUITE CERTAIN THAT THERE IS A WAY TO FUND THE COMMISSION -- TO ENABLE IT TO EXPAND FOR A TIME -- WITHOUT CRIPPLING THE ABILITY OF ANY TRIBAL GAMING OPERATION TO REALIZE THE NET REVENUES THAT ARE SO VITALLY NEEDED TO FUND THE OPERATIONS OF TRIBAL GOVERNMENTS. I ASK YOU TO WORK WITH ME AND CHAIRMAN CAMPBELL AND THE COMMISSION TO FIND THE PROPER BALANCE.

I WOULD CALL UPON TRIBAL LEADERS, IN THE STRONGEST POSSIBLE TERMS, NOT TO REFUSE TO PAY FEES. THE DEVASTATING EFFECTS OF SUCH ACTIONS IN THE POLITICAL ARENA, I CAN ASSURE YOU, WILL BE FAR IN EXCESS OF ANY MONEY YOU THINK YOU ARE SAVING IN THE SHORT-TERM. DON'T LOSE FOR WHAT MANY TRIBES IS THE ONLY VIABLE STREAM OF INCOME TO SAVE A FEW DOLLARS. PLEASE BELIEVE ME -- THE POLITICAL STAKES ARE TOO HIGH, AND IT SIMPLY ISN'T WORTH THE PRICE YOU WILL PAY DOWN THE ROAD.

OF COURSE, THERE ARE OTHER CHALLENGES THAT WE ANTICIPATE IN THIS SESSION OF THE CONGRESS -- SOME OF WHICH MAY HAVE POSITIVE OUTCOMES FOR INDIAN COUNTRY. THE I.S.T.E.A. LEGISLATION -- THE LONG NAME IS THE INTER-MODAL SURFACE TRANSPORTATION EFFICIENCY ACT.

A NUMBER OF YEARS AGO, SENATOR DOMENICI SECURED A HEALTHY APPORTIONMENT FOR TRIBES IN HIGHWAY FUNDS. WE HAVE A GOOD FOUNDATION ON WHICH TO BUILD. NOW WE SHOULD LOOK AT PROPOSALS FOR CONTRACTING FEDERAL HIGHWAY FUNCTIONS AND INCREASING THE TRIBAL ALLOCATION BASED UPON THE HUNDREDS IF NOT THOUSANDS OF MILES OF ROADS ON INDIAN LANDS THAT NEED TO BE MADE SAFE.

LAST BUT NOT LEAST, WE HAVE THE CHALLENGES THAT WE KNOW WILL RESURFACE IN THIS SESSION OF THE CONGRESS -- CHALLENGES THAT I ADDRESSED IN MY REMARKS TO YOU IN NOVEMBER. IT IS MY INTENT TO CONTINUE SEEKING YOUR GUIDANCE ON WHETHER WE SHOULD COUNTER THESE PROPOSALS WITH OUR OWN INITIATIVES -- MEASURES THAT WOULD HAVE A MORE BENEFICIAL IMPACT IN INDIAN COUNTRY.

I THINK THE TIME HAS COME, FOR INSTANCE, TO ADDRESS THESE TAX ISSUES HEAD ON. I DON'T WANT TO SEE ANY MORE RULINGS FROM THE SUPREME COURT THAT HARKEN BACK TO THE POLICY OF THE GENERAL ALLOTMENT ACT. THAT POLICY HAS LONG BEEN REPUDIATED, AND IT OUGHT NOT TO SERVE AS THE FOUNDATION FOR NEW SO-CALLED BRIGHT LINE TESTS RELATING TO THE TAXATION OF INDIAN LANDS OR A TRIBE'S JURISDICTION OVER INDIAN LANDS.

IN THE COMING DAYS, THE COMMITTEE WILL HOLD HEARINGS ON SOVEREIGNTY AND ISSUES ASSOCIATED WITH THE ASSERTION OF SOVEREIGN IMMUNITY BY TRIBAL GOVERNMENTS. TWO OF THOSE HEARINGS WILL BE FIELD HEARINGS -- IN SEATTLE AND MINNEAPOLIS. I BELIEVE THOSE HEARINGS CAN BE AN OPPORTUNITY FOR INDIAN COUNTRY TO EDUCATE OTHERS ABOUT YOUR SOVEREIGN STATUS AS NATIONS, AND YOUR RESPONSIBILITIES AS GOVERNMENTS.

WE HAVE MUCH WORK TO DO -- THAT MUCH IS CLEAR. THERE ARE LITERALLY SCORES OF OPPORTUNITIES FOR US TO TURN SOME NEGATIVES INTO POSITIVES FOR INDIAN COUNTRY -- IF WE CHOOSE TO DO SO. I THINK WE SHOULD MAKE THAT CHOICE, AND IN THE PROCESS, WE CAN HELP THE AMERICAN PUBLIC AND THE POLITICIANS WE WILL ELECT THIS FALL UNDERSTAND WHAT POLICIES AND LAWS ARE GOOD FOR INDIAN COUNTRY AND THEREFORE GOOD FOR AMERICA.