§1166. Pribilof Islands Trust

(a) Establishment; funding; distributions; investments

(1) In order to promote the development of a stable, self-sufficient enduring and diversified economy not dependent on sealing, the Secretary shall cause to be established a Trust for the benefit of the Natives of the Pribilof Islands, to be known as the "Pribilof Islands Trust" (hereinafter referred to as the "Trust").

(2) All amounts appropriated to the Secretary under subsection (e) of this section shall be transferred by the Secretary to the Trust within fifteen days after submission of the Trust instrument to Congress in accordance with the requirements of subsection (c) of this section.

(3) Except as provided in subsection (e)(2) of this section, none of the amounts transferred to the Trust pursuant to paragraph (2) shall be distributed by the trustee or trustees for the benefit of the Natives of the Pribilof Islands until 30 days after submission to Congress of the documents described in section 1165(a) and (d) of this title. Such distributions shall be made by the trustee or trustees only after the Secretary has determined that such Trust has been established and will be operated in accordance with a trust instrument, or instruments, approved by the Secretary which further the purposes and policies of this chapter.

(4) Until the termination of the period described in paragraph (3), the trustee or trustees shall invest the amounts transferred pursuant to paragraph (2) in securities with maturities suitable for the needs of the Trust, bearing interest rates at rates determined by the trustee or trustees, taking into consideration average market yields on outstanding marketable obligations of the United States of comparable maturities. The income from such investments shall be credited to, and form a part of the Trust.

(b) Administration of Trust

The Trust shall be administered in accordance with such terms and conditions as are prescribed by the Secretary, and as set forth in the Trust instrument. In establishing such terms and conditions, the Secretary shall consult with the Natives of the Pribilof Islands, and other interested parties concerning the conservation, management and protection of the fur seal population.

(c) Trust instruments

There may be one Trust instrument establishing the Trust described in subsection (a) of this section, or two such instruments, each relating to one of the two portions of the Trust as provided in subsection (d) of this section, which shall address, but need not be limited to, such matters as-

(1) establishing standards and procedures for the disbursement by the trustee or trustees of Trust assets for purposes of fostering in the Pribilof Islands a stable, diversified, and enduring economy not dependent upon sealing after Federal management of the islands is terminated, which procedures may include formal participation of Pribilof Islands Native councils, corporations, or other such entities;

(2) establishing the Secretary as trustor;

(3) establishing the procedure for appointment of the trustee or trustees by the Secretary after consultation with the Natives of the Pribilof Islands;

(4) setting forth the rights, duties, powers and obligations of a trustee who shall act as an independent fiduciary and who shall be a United States citizen having recognized competence in business;

(5) providing for the management and investment of Trust assets, pending distribution, by an investment manager or advisor, who may be the trustee, having recognized competence in such fields;

(6) establishing methods and procedures for providing Congress and the Secretary with the annual reports described in subsection (g) of this section;

(7) establishing Trust purposes in accordance with the purposes described in section 1161 of this title and subsection (a) of this section;

(8) the duties of the trustee or trustees and the standards of care and diligence that shall govern the exercise of trust powers thereunder;

(9) compensation of the trustee or trustees;

(10) the term, termination and final distribution of the Trust estate;

(11) mandating the applicability of the laws of the State of Alaska to the creation and governance of the Trust;

(12) defraying of community expenses; and

(13) payment of necessary administrative and legal expenses.

The Trust instrument or instruments described in this subsection shall be submitted to Congress on or before October 14, 1983.

(d) Separate portions of Trust for independent benefit of community of St. Paul and community of St. George

The Trust shall be divided into two portions pursuant to a formula established by the Secretary after consultation with the natives of both Islands, to be accounted for separately for the independent benefit of the community of St. Paul and the community of St. George.

(e) Authorization of appropriation; interim distributions

(1) There are authorized to be appropriated to the Secretary $20,000,000 for the purpose of funding the Trust in accordance with the requirements of subsection (a)(2) of this section. In addition, there are authorized to be appropriated to the Secretary $3,200,000 for fiscal year 1989 and $1,800,000 for fiscal year 1990 to be used for the purpose of funding the Saint Paul Island Trust, as established pursuant to subsection (a)(1) of this section, and $3,700,000 for fiscal year 1990 to be used for the purpose of funding the Saint George Trust, as established pursuant to subsection (a)(1) of this section.

(2) Prior to the termination of the period described in subsection (a)(3) of this section, the trustee or trustees may make interim distributions for the benefit of the Natives of the Pribilof Islands, upon approval of the Secretary, of up to five percent of the amounts transferred to the Trust pursuant to subsection (a)(2) of this section if, as determined by the Secretary, such interim distributions are required to carry out the purposes of this chapter.

(3) There is authorized to be appropriated to the Secretary of the Interior $3,500,000 for distribution to the Trust for the purpose of preserving and maintaining municipal, community, and tribal functions while an economy not dependent on sealing is established.

(f) Interest and proceeds from Trust

The interest on, and the proceeds from the sale or redemption of, any asset or obligation held in the Trust shall be credited to and form a part of the Trust.

(g) Annual report to Congress

The trustee or trustees shall submit to Congress and to the Secretary an annual report, the first of which is due on April 30, 1984, and subsequent reports on the same date each year thereafter during the life of the Trust, providing information on expenditures made from the Trust and progress towards achieving the purposes set out in subsection (a) of this section. On April 30, 1986, the Secretary shall also submit a report to the Congress detailing all progress toward achieving these purposes since October 14, 1983. For purposes of preparing such report, the Secretary by regulation may require that the trustee and the State of Alaska submit such relevant information to the Secretary as he deems appropriate.

(h) Exemption from taxation

The funds appropriated to the Trust and the earnings and distribution therefrom shall not be subject to any form of Federal, State or local taxation: Provided, That this exemption shall not apply to any income from the investment or other use of such distributions.

( Pub. L. 89–702, title II, §206, Nov. 2, 1966, 80 Stat. 1094 ; Pub. L. 98–129, §2, Oct. 14, 1983, 97 Stat. 840 ; Pub. L. 100–711, §9, Nov. 23, 1988, 102 Stat. 4772 ; Pub. L. 101–512, title I, Nov. 5, 1990, 104 Stat. 1931 .)

Codification

In subsec. (g), "October 14, 1983" substituted for "enactment of this Act", meaning the enactment of Pub. L. 98–129 which amended this section generally.

Amendments

1990-Subsec. (e)(3). Pub. L. 101–512 added par. (3).

1988-Subsec. (e)(1). Pub. L. 100–711 authorized appropriations for fiscal years 1989 and 1990 to fund the Saint Paul Island Trust, and authorized appropriations for fiscal year 1990 to fund the Saint George Trust.

1983-Pub. L. 98–129 amended section generally, substituting provisions for the creation and functioning of a Pribilof Islands Trust for provisions which authorized the Secretary to set apart land on Saint Paul Island for a townsite and to aid in the development of a municipal government therefor.

Section Referred to in Other Sections

This section is referred to in section 1165 of this title.