Corruption

California

"Tribes Must Disclose Donations, Court Says," Bob Egelko, The San Francisco
Chronicle, March 4, 2004, A19. Copyright 2004 The Chronicle Publishing Co.

["California Indian tribes, among the state's largest campaign donors, must
disclose their contributions publicly, despite their claim of legal immunity as
sovereign nations, a state appellate court ruled Wednesday. In a precedent-
setting decision, the Court of Appeal panel in Sacramento ruled 2-1 that the
state's authority under the U.S. Constitution to govern itself included the
power to sue anyone -- including sovereign Indian tribes -- to enforce
campaigndisclosure laws. The right to go to court and compel public filing of
contributions "is essential to secure the state's constitutional right to
guarantee a republican form of government free of corruption," wrote Justice
Richard Sims. The ruling appears to be the first by any appellate court in the
nation on the issue, which is likely to end up in the U.S. Supreme Court, said
Jim Knox, executive director of California Common Cause."]
"Tribal Leaders Voted Out, Foes Say; Scotts Valley Band of Pomo Indians
Caught in Internal Debate
Over Proposed Richmond Casino," Josh Richman, Alameda Times-Star (Alameda,
CA.), March 2, 2004.
Copyright 2004 MediaNews Group, Inc. and ANG Newspapers.

["An Indian tribe that has been seeking East Bay casino land continued its
internal war this weekend, with a vote to oust four council members whom
some say have put investors' interests ahead of the tribe's. Les Miller of
Alameda, a member of the Scotts Valley Band of Pomo Indians, said he and
other tribal members voted Saturday to remove tribal Chairman Don Arnold and
three other council members from their seats. But there seems to be some
dispute over whether this vote was binding; Arnold and others have called a
tribal meeting for Sunday in Kelseyville, at which there's likely to be some
dispute over who's rightly in charge. Arnold couldn't be reached for comment
Monday."]

“Bush Helps Indian Tribe Secure Access to Water Supply,” Michael Gardner, Copley
News Service, March 3, 2004. Copyright 2004, Copley News Service.
[“SACRAMENTO: With President Bush's help, an east San Diego County tribe has secured
a route for a pipeline to bring desperately needed water to its casino and golf
course. However, the legislation just signed by the president could strip away
leverage city and county officials had hoped to use to seek water for nearby
homeowners who claim their wells were sapped when the Barona band began irrigating
its golf course. A provision quietly slipped into the omnibus federal measure
carried by Sen. Ben Nighthorse Campbell, R-Colo., grants the tribe almost unfettered
control over 85 acres between its reservation and San Vicente Reservoir. San Diego
County Supervisor Dianne Jacob conceded that the legislation undercuts the county's
prospects of negotiating concessions to help neighboring homeowners. . . . By having
its land placed in federal trust, the tribe's property is subject only to federal
law and not the state's tougher environmental standards. It still must negotiate a
water deal with the city of San Diego, which owns San Vicente.”]

“Bureau of Indian Affairs Staff has Ties to Conflicted Miwok Tribe,” Don Thompson,
Associated Press Writer, February 21, 2004, Copyright 2004 The Associated Press
State & Local Wire.

[“Plymouth, CA: Amid the rolling hills of vineyards in what is becoming one of
California's fast-growing wine regions, a once-tiny, nearly destitute tribe is
pushing hard to build a $100 million casino. It is doing so only because regional
Bureau of Indian Affairs officials opened the tribe's membership rolls against the
wishes of its traditional leadership, then oversaw an election that swapped the old
leadership for a pro-casino group including some BIA officials themselves. One
congressman called it an apparent ‘coup d'etat’ that should make other tribes
‘tremble with fear.’ . . . Before the BIA's involvement, about 70 traditional
members of the Ione Band of Miwok Indians lived in trailers and manufactured homes
on 40 acres near Ione. Now, those BIA officials and their relatives are officially
among the tribe's approximately 535 official members. Amy Dutschke, whose family has
roots in the Ione area, was the BIA's acting regional director in June 2002 when she
authorized the tribe's latest leadership election, BIA and tribal documents show.
Dutschke and 68 of her relatives now are on the tribe's official list of registered
voters, including an uncle and a niece who also work for the BIA, according to
tribal rolls, a BIA employee list and opposition members. The election was overseen
by BIA employee Carol B. Rogers-Davis, whom the BIA named chair of the elections
board. She has three relatives on the tribal roll, records show. The election
produced five new tribal leaders, four of whom are related to Dutschke and none of
whom is related to the tribe's original 70 members. . . . After original tribal
leaders complained, four congressmen called for an investigation of what U.S. Rep.
Nick Rahall of West Virginia, the ranking Democrat on the House Resources Committee,
termed an apparent BIA coup. Not only did BIA employees become members of the tribe
they were administering, they then took seats on the tribe's election committee and
threw out an election protest filed by the tribe's ousted chairman. BIA regional
officials who double as tribal members "stand to profit substantially" from their
own decisions about the casino, wrote county Supervisor Louis Boitano. The BIA's
staff, and other members primarily from the disenfranchised Sacramento-area Wilton
Band, ‘took over the Ione Band, they elected new leadership and everything,’ said
Supervisor Mario Biagi, a grape grower whose district includes the proposed casino.
‘We feel there's a direct conflict of interest there.’ Congressmen, county
supervisors and casino opponents don't dispute there is a decade-long factional
dispute over the tribe's leadership. But they say it was caused largely by the
regional BIA's actions, compounded and they allege prompted by agency officials like
Dutschke with a clear conflict of interest.”]
Tribe Divided over East Bay Casino Plan Group of Scotts Valley Band," Josh
Richman,Alameda Times-Star (Alameda, CA), February 10, 2004. Copyright 2004
MediaNews Group, Inc. and ANG Newspapers.

["A Northern California Indian tribe is wracked by internal strife even as
developers have bought land in unincorporated North Richmond in hopes the
tribe could someday turn it into a casino resort. A petition signed by 27
members of the Lakeport-based Scotts Valley Band of Pomo Indians has been
submitted to the tribal council, demanding a special meeting under the
tribe's constitution to air charges that four council members 'have
committed acts which are contrary to the best interests of the Tribe and
have abused the power and privilege of their office. These Tribal Council
Members have been dishonest with the Members and with the public on the true
ancestral origin of the Scotts Valley Band of Pomo Indians for the purpose
of gaining a richer 'Casino Market Area' in the city of Richmond, in the Bay
Area,' the petition claims. It demands the four council members' immediate
resignations, lest they face 'criminal legal action and personal repayment
of funds' if the tribe finds them guilty at this special meeting."]

“Tribes, Governor Move Ahead on Casino Deal,” David M. Drucker, Alameda Times-Star
(Alameda, CA), February 4, 2004. Copyright 2004,MediaNews Group, Inc. and ANG
Newspapers.

[“SACRAMENTO: Negotiators for Gov. Arnold Schwarzenegger and eight Indian tribes
have moved forward rapidly on a long-term deal that would expand casino gambling
operations while dramatically increasing payments to the state, sources said
Tuesday. The sources said a deal could be reached as early as April or May that
would secure $500 million from the tribes for next year's deficit-ridden budget and
15 percent of gaming revenues annually for future budgets.”]
“Disenfranchised Tribal Members Stage Protest,” James May, Indian Country Today,
February 20, 2004.

[“SACRAMENTO, CA- A group of nearly 50 protesters demonstrated outside the
California state capitol to bring attention to the increasing problem of tribal
disenrollments. Former members of the Redding and Enterprise Rancherias were nearly
equally represented at the event. Both Rancherias have been embroiled in separate
disputes with their respective tribal governments over their disenrollments. . . .
Mark Maslin, who though not a member of the Redding Rancheria is married into the
Foreman family and serves as their spokesman. . . . claims that the legal grounding
for his family’s case is ironically rooted in the controversial Public Law 280. PL
280 is a federal statute that largely removes federal responsibility for tribal law
enforcement and gives it to the states. For this to happen Maslin said that ‘the
attorney general would have to say that there has been a violation of our
(disenrollees) civil rights.’”]

"Tribe Seeking Exemption From Disclosure Laws; An Appellate Court is Asked
to Rule That an Indian Band's Sovereignty Spares it From State Rules on
Campaign Donations," Dan Morain, Lost Angeles Times, February 19, 2004.
Copyright 2004 The Times Mirror Company; Los Angeles Times.

["SACRAMENTO: Lawyers for an Indian tribe that has spent $14 million on
California campaigns in recent years urged a state appellate court Wednesday
to rule that the tribe's status as a sovereign government exempts it from
campaign donation disclosure laws. The dispute involves tribes' long-held
right to remain immune from most state laws and California's right to
enforce its election laws. The California Fair Political Practices
Commission has accused the Agua Caliente Band of Cahuilla Indians, owners of
two casinos in and near Palm Springs, of failing to meet deadlines and other
requirements in public reports disclosing its political donations and
lobbying activity dating to 1998 and continuing through 2002. In 2002, for
example, the tribe failed to disclose a $125,000 donation to support
Proposition 51, the FPPC alleged. If voters had approved that measure, the
state would have been required to sell $120 million in bonds to finance
passenger rail service from Los Angeles to Palm Springs, including a stop at
one of Agua Caliente's casinos. When the commission tried to settle the
matter by imposing a fine, the tribe balked, contending it was not subject
to the California Political Reform Act, a law approved by voters in 1974 in
the wake of the Watergate scandal. The FPPC sued the tribe, seeking as much
as $8 million -- the amount that the FPPC said was misreported."]
“$50 million Ad Budget Readied for Gaming Initiative,” Lou Hirsh and Jake Henshaw,
The Desert Sun, January 24, 2004.

[“Palm Springs, CA: With a $50 million advertising budget in its hip pocket to take
its campaign to the media, the Agua Caliente Band of Cahuilla Indians is gearing up
for a high-stakes gambit to grow the gaming industry exponentially in the state.
Earlier this week, the Agua Caliente proposed a ballot initiative that would double
gaming revenue payments to the state in exchange for more gaming rights. . . . .The
proposal, filed as a ballot initiative on Tuesday to amend the state constitution,
could increase tribes’ contributions of gaming revenues to the current 8.8 percent
tax rate paid by California corporations. Last week, industry experts said Indian
gaming is a $4 billion industry. By those figures, the state could collect up to
$350 million. Gov. Arnold Schwarzenegger had proposed in his Jan. 9 budget to
increase revenue sharing from tribal casinos by $500 million. . . . The proposal
also removes the per-tribe cap of two casinos and 2,000 slot machines, which would
allow the industry to expand as much as the market will bear. It also would extend
gaming pacts to 99 years, allow Vegas-style games such as roulette and craps and
retain tribes’ exclusive right to the industry. . . .Sen. Denise Ducheny, D-San
Diego, said there is no real justification for the tribes to pay anything beyond the
normal corporate tax rate. ’Any assessment of fairness has to take into account that
the tribes spend much of their income on tribal services that the state doesn’t pay
for on reservations,’ Ducheny said. Sen. Jim Battin, R-La Quinta, was critical of
the idea of California tribes paying 25 percent as Connecticut tribes do, saying
there are far fewer tribes there, in effect, serving the huge New York area
market.”]

"Arizona Man Sues Wealthy Pechanga Tribe to Gain Admission," The Associated
Press State & Local Wire, January 15, 2004.

["Riverside, CA: An adopted man who claims his biological father was a
Pechanga Indian is suing to gain admission to the wealthy tribe. Joe Liska,
43, said he will protest outside the Pechanga Casino in Temecula at 2 p.m.
Saturday in an effort to pressure the band into enrolling him and his two
children. . . Liska said he was given up for adoption as an infant and
didn't learn of his heritage until the 1990s, after his father had died and
the tribe temporarily stopped enrolling new members. Tribal officials said
the moratorium, which could end within the next four years, was intended to
clear up inaccuracies in the membership rolls. The success of Indian
gambling nationwide have led to similar disputes over blood ties to tribes.
Liska filed a U.S. District Court lawsuit in November seeking to stop
monthly gambling-profit checks sent to current members. He also joined
forces with the American Indian Movement and other descendants affected by
the Pechanga's decision to temporarily stop enrolling new members. . . .
Liska's lawsuit alleged the tribe violated federal gambling law by failing
to have an approved plan on file with the Interior Department specifying
how the gaming profits are used. Monthly checks to members are not supposed
to be made without a plan. Phil Hogen, chairman of the National Indian
Gaming Commission, confirmed that the Pechanga tribe doesn't have an
approved plan on file and said the commission began an inquiry last month."]
"Leaders Speak of Political 'Warfare,'" Ben Schnayerson, San Bernardino Sun
News, January 15, 2004.

["Palm Springs, CA: It was a call to arms Wednesday for California Indian
tribes threatened by a proposed initiative that could cost them their
casino monopoly. They are also in a standoff with a governor determined to
get a chunk of their lucrative revenues and are discussing long-range goals
to get sympathetic members appointed to the U.S. Supreme Court. This war's
weapons will be checkbooks and political campaigns. At the ninth annual
Western Indian Gaming Conference at the Palm Springs Convention Center,
leaders of gaming tribes outlined their successes and how they plan to
survive current challenges. We all have some difficult times ahead of us,'
said Richard Milanovich, chairman of the Agua Caliente Band of Cahuilla
Indians in Palm Springs. . . . Tribal leaders boasted that during a dip in
the economy, California gaming tr
ibes saw growth from $2.9 billion in 2001
to about $4 billion now. In January 2000, tribes employed 7,200 people.
Three years later, they employed more than 41,000. This growth has also
given tribes the financial muscle to fight on the political battlefield.
'We are in modern warfare,' said Anthony Pico, chairman of the Viejas Band
of Kumeyaay Indians. One looming battle is the Gaming Revenue Act of 2004,
which could bring the growth of Indian gaming to an abrupt halt. The
initiative, which is proposed for the November ballot but has yet to be
circulated for signatures, would require every California gaming tribe to
share 25 percent of its slot machine revenue with the state."]


"Tribal Gaming Liaison Named; Governor Selects," Josh Richman, Alameda Times-Star (Alameda, CA.), January 8, 2003. Copyright 2004 MediaNews Group,
Inc. and ANG Newspapers.

["Gov. Arnold Schwarzenegger on Wednesday named a Bay Area attorney and former appellate court judge to lead the state's negotiations with Indian
tribes for a cut of their casino revenues -- the same man who conducted former Gov. Pete Wilson's hardball negotiations. Yet several Northern
California Indian tribes -- including one that runs the closest big casino to the Bay Area, and another planning a Nevada-style casino in the East
Bay -- are raring to work a revenue-sharing deal with the state, their lawyer said Wednesday. 'The people of California stood with the tribes when
we needed them and now we want to be there for the people during the current budget crisis,' attorney Howard L. Dickstein said Wednesday morning. 'We're
eager to begin negotiations, the sooner the better, with whomever he appoints.' By midday, 'whomever' had turned out to be Daniel Kolkey, 51, who
since November has been a partner in Gibson, Dunn & Crutcher's San Francisco office; for five years before that, he was a California Court of Appeal
associate justice in Sacramento."]

"Tribe to Give State a Slice of Slot Profit; The Torres-Martinez Indians Will Pay 3% of the Revenue at First, Increasing to 5%. It is the First Agreement of
its Kind," Gregg Jones, The Los Angeles Times, August 14, 2003, Part 2, 1. Copyright 2003 The Times Mirror Company; Los Angeles Times.

["SACRAMENTO: After months of negotiations with dozens of Indian tribes, Gov. Gray Davis on Wednesday announced the first new gambling agreement with a
California tribe that will funnel money directly into the state general fund. The agreement with the Torres-Martinez Desert Cahuilla Indians of Southern
California marks a breakthrough in the administration's efforts to increase the state's share of Indian casino revenue and ease the environmental impact of
casinos on local communities. Coming less than eight weeks before Davis faces a recall election, the agreement is a first step toward addressing what many
critics say was the administration's failure to drive a harder bargain with Indian tribes in 1999.... The Torres-Martinez tribe has federal approval to put slot machines in an Imperial County truck stop along Highway 86 and is seeking land for a casino along Interstate 10 in Riverside County. It agreed to
initially pay the state 3% of the revenue from its first 350 slot machines. The state's cut will increase to 4% of revenue in the second year of operation and
5% thereafter. If Torres-Martinez generates typical revenue of about $100,000 a year from each of those 350 machines, the state's portion would reach $1.75
million by the third year."]

Taxation

"Senecas' ads get Message Across: Tribe has Spent $2M and Counting on
Anti-tax Campaign; Lawmakers Hear From Constituents," James M. Odato, Times
Union (Albany, N. Y.), January 23, 2004. Copyright 2004 Capital Newspapers
Division of The Hearst Corporation, Albany, N.Y.

["Albany, N. Y.- Less than halfway through its 'honor Indian treaties' ad
campaign, the Seneca Nation of Indians has already spent $2 million and
grabbed the Legislature's attention. The ads, part of the Seneca's
opposition to a state plan to impose sales tax on Indian stores, are
expected to run another two months. They are beginning to needle lawmakers,
who are receiving letters from constituents. Seneca President Rickey
Armstrong said the cost 'has been worth every penny ... and the politicians
in Albany are beginning to listen to us.'. . . The second series of new ads
on television and radio, and in newspapers started Jan. 6. The ads are
supposed to continue through March 1 -- the effective date of the new tax
regulation. The regulation calls for cigarette and motor fuel distributors
to prepay excise and sales taxes to the state before delivery to American
Indian stores. The goal is to collect the taxe
s on sales to non-Indian customers. Rebates would be available for sales to Indians."]
"Tribes Follow State on Tobacco Tax - Tax at Fort Hall Adds $3 to Each
Cigarette Carton," Ben Botkin, Idaho Falls Post Register, January 20, 2004,
A1. Copyright 2004 Iaho Falls Post Reigster.
Copyright 2004 The Post Register.

["FORT HALL: Smokers who light up cigarettes purchased at the Fort Hall
Indian Reservation now contribute to tribal health and education every time
they buy smokes. Shoshone-Bannock tribal leaders introduced a tobacco tax in
November that provides the tribes with $3 for every carton of cigarettes
sold on the reservation. The tax is estimated to pull in $1.6 million to
$1.8 million every year for the reservation, much of which is slated for
tobacco prevention, education and health needs. The measure is similar to
that of tribes throughout Idaho, which have enacted tobacco tax increases in
recent months. It also comes after Idaho legislators failed in recent years
to force state taxes on tobacco retailers who sell within reservation
boundaries."]

“Federal Judge Rules State was Right to Shut Down Smoke Shop,” Elizabeth Zuckerman,
The Associated Press State & Local Wire, December 29, 2003.

[“PROVIDENCE, R.I.: A federal judge ruled Monday that the state acted properly in
shutting down the Narragansett Indian tribe's tax-free smoke shop, saying the state
has the right to tax cigarette sales on the tribe's land. U.S. District Judge
William Smith's ruling followed a violent July raid in which state police arrested
seven tribal members who tried to resist their advance into the trailer where the
cigarettes were being sold. The federally recognized tribe argued that as a
sovereign nation, it is free from the state's taxation laws. The state argued that
according to the terms of the 1978 settlement agreement that gave the tribe its land
in Charlestown, the tribe is bound by state statutes. Smith found the cigarette tax
falls on the tobacco consumer, not the tribe, meaning the tribe is simply an agent
for collecting a tax.”]

"Senecas to Build $140 Million Niagara Falls Hotel," The Associated Press
State & Local Wire, December 26, 2003.

["NIAGARA FALLS, N.Y.: The Seneca tribe plans to build a $140 million hotel
overlooking Niagara Falls as the latest step to building a huge casino
resort. The Seneca Nation will break ground in April on the 26-story hotel
that tribal officials say will be the Niagara Falls' first four-star hotel.
The hotel will have 600 rooms and a full-service spa . . . . the Senecas
plan to offer rooms without charging sales, bed or property taxes. Those
taxes can add 30 percent to a room price, said Mayor-elect Vince V. Anello,
who said he welcomes the Seneca announcement."]
"Negotiations Ongoing With ND Tribes Over tax Collections," Dale Wetzel, The Associated Press State & Local Wire, January 18, 2003.

["BISMARCK, N.D.: North Dakota's governor and tax commissioner hope to conclude agreements in the next few months with the state's American Indian tribes over tobacco and fuel tax collections on reservations. Tribal businesses, as well as Indian-owned tobacco shops on reservations, are not obliged to levy the state's
44-cent tax on a pack of cigarettes, or its taxes on other types of tobacco, such as cigars, pipe tobacco and smokeless. . . . Tobacco-tax agreements with
the tribes are viewed as important to the success of [Governor] Hoeven's proposal to raise North Dakota's cigarette tax from 44 cents to 79 cents a
pack. . . . Without a tax accord, some legislators say, a large tax increase would simply give tribal tobacco stores a more pronounced price advantage, and
result in a surge of reservation sales."]

"Mohawks to Share Slot Machine Revenues With State," The Associated Press State & Local Wire, November 14, 2003.

["ST. REGIS MOHAWK RESERVATION, N.Y.: Giving away a share of slot machine revenues to New York state is "a good business decision" for the St. Regis Mohawk Tribe, a chief said Friday. The Mohawks would share up to 25 percent of potential profits with the state from slot machine gambling at their Akwesasne Mohawk Casino under an accord announced Thursday. 'There is a significant economic potential if we can offer slot machines. The casino would grow. There would be enough money to share,' said Chief Jim Ransom. 'It's just a good business decision for the tribe.' . . . The agreement iscontingent on the state Legislature ratifying the 1993 tribal-state compact that authorized the tribe to open the casino."]
"Tribe[s] Complain States are Getting Greedy," Lolita C. Baldor, The Associated Press State and Local Wire, July 9, 2003. Copyright 2003 The Associated Press.

["WASHINGTON: Native American leaders urged the federal government Wednesday to set policies on tribal gaming agreements to prevent cash-strapped states from trying to balance their budgets on the backs of Indian casinos....senators on the Indian Affairs Committee agreed something must be done to insure that the wildly fluctuating state compacts don't divert money from important tribal services. Pointing to the Mashantucket Pequot Tribe's compact with the state of
Connecticut - which sends 25 percent of its slot machine revenue to the state - tribal officials said other states are now demanding similar fees to help close
their deficits."]

“Senecas Protest State's Tax-Collection Plan,” The Associated Press State & Local Wire, November 8, 2003.

[“Silver Creek, N.Y.: A protest was scheduled Saturday near the Seneca Indian reservation near Buffalo to denounce a state plan to tax Indian cigarette and
gasoline sales. . . .The tax collection rule was scheduled to take effect December 1. Gov. George Pataki, however, pushed that date back Friday to March 1. . .
.Saturday's protest, which tribal officials said was organized by non-Senecas, was expected to be attended by both Senecas and non-Indians.”]

"Senecas Renew Anti-Tax Campaign," The Associated Press State & Local Wire, January 6, 2004. Copyright 2004 The Associated Press.

["IRVING, N.Y.: The Seneca Indian Nation renewed its media campaign opposing the state's plans to tax cigarette and other sales by Indian vendors to non-
Indians. 'The issue is a pivotal moment in Seneca history. Our sovereignty is at stake,' Seneca President Rickey Armstrong said Tuesday. 'It's
imperative that we continue to highlight the public's opposition to this tax scheme.' The campaign, begun in October, includes television, radio and
newspaper ads denouncing the state's efforts as a violation of treaties dating to 1842. The state Department of Taxation and Finance intends to
collect the $1.50-a-pack state tax on cigarettes from wholesalers before they deliver cigarettes to reservation stores. The collections were supposed
to begin Dec. 1 but the Pataki administration put it off until at least March 1, saying more time was needed to study the issue."]

"Pataki Administration Out With Plan to Collect Indian Taxes, Joel Stashenko, The Associated Press State & Local Wire, September 12, 2003.

["ALBANY, N.Y.: The Pataki administration detailed plans Friday on how it will collect taxes on tobacco and motor fuel sales by Indian vendors to non-Indians,
a touchy venture the state is revisiting to help fill its cash-starved treasury. Gov. George Pataki's Department of Taxation and Finance issued
proposed regulations in line with the mandate the administration got from the state Legislature in May to go after taxes being lost on reservation sales to
non- Indians. The Oneida Indian tribe immediately vowed to defy state attempts, scheduled to begin Dec. 1, to collect the taxes. 'The Oneida Nation considers
any attempt by the state of New York to tax reservation-based enterprises to be illegal and an affront to the sovereignty of all Haudenosaunee nations,'
spokesman Mark Emery said. 'It will resist all efforts by the state to tax its enterprises.' Under the tax department's regulations, tribes will be issued
coupons to cover all estimated purchases from Indians to Indians on their own tribal lands. The coupons can be redeemed for the cost of the taxes on the
items being bought. Tax officials admitted they have no precise way of knowing how much the coupons will be worth, but will estimate their value based on
Census data and other information. The state said it would also compel non- Indians in New York to pay taxes on cigarettes and other items they buy from
Indians on reservations. A "new mechanism" will be created on state personal income tax returns for taxpayers to report the sales each year and to pay taxes
on them, under the proposed regulation."]

“Ugliness Could Erupt in New York Over tax Collection on Reservation Businesses,” Tom Wanamaker, Indian Country Today, June 4, 2003. Copyright

2003, Knight Ridder/Tribune Business News. Copyright 2003, Indian Country Today.
[^ÓAll eyes watching Indian gaming should focus on New York in the coming months. Two "situations" are currently brewing; their resolution may have
significant implications for Indian gaming in other states. One concerns the possible precedent of out-of-state^Ò tribes operating gaming facilities in
states other than where they are recognized. The other involves demands by the state legislature that state taxes be collected from businesses
operating on reservation land. Both, especially the latter, could turn ugly if not handled properly. The Seneca-Cayuga Tribe of Oklahoma plans to build
and open a Class II bingo hall in the town of Aurelius, some 35 miles southwest of Syracuse. Local officials, regardless of their stance on
gaming, insist that the tribe follow local building codes and permit ordinances. As a federally recognized sovereign Indian nation, tribal
leaders say they need not adhere to local and state laws. While similar conflicts have erupted around many Indian-operated businesses around the
country, this situation takes on an added twist in that the Seneca-Cayugas are federally recognized in Oklahoma, but have won a land claim settlement
(for which its compensation determination is currently under appeal) in New York. . . . For their part, Seneca-Cayuga leaders have attempted to come to
an understanding with county and town leaders. While the tribe continues to reject demands that they submit to local building codes, tribal leaders did
offer Cayuga County a check, with no strings attached, for $ 15,000 late last year and have offered to negotiate similar payments in the future. The
county rejected the check, which was written for an amount slightly higher than the previous year's tax bill for the 229-acre parcel now owned by the
tribe. Town officials insist that they will immediately get a court order to halt any bingo hall construction at the site, but have not indicated the
degree, if any, of force they are willing to use. Tribal leaders are equally determined to press forward with their plans.^Ô]

“American Indians rally behind Rhode Island tribe,” Donna Tomelleo, The Associated Press State & Local Wire. October 23, 2003

[“Mashantucket, Conn.: This summer's police raid on the Narragansett Indian tribe's tobacco shop in Rhode Island has galvanized American Indians from around the country who say the action is an example of the government's attempts to undermine tribal sovereignty. During a gathering Thursday of 24 eastern U.S. tribes at the Mashantucket Pequot tribe's Foxwoods Resort Casino, leaders called for a strong, unified effort to lobby Congress on sovereignty issues, making sure government respects its treaties. . . . The tribe, which gained federal recognition about 20 years ago, would not have resisted had members been served with federal warrants, he [Narragansett Chief Sachem Matthew Thomas ] said. Instead, the troopers dispatched by Rhode Island Gov. Don Carcieri were armed with state warrants.”]
[^ÓCHARLESTOWN, R.I.: The chief sachem and seven other members of the Narragansett Indian Tribe were arrested Monday by state police in what
onlookers described as a violent raid of the tribe's new tax-free tobacco shop. Gov. Don Carcieri called the raid ^Ñtruly regrettable, but clearly necessary^Ò
after tribal leaders said they would only close the smoke shop if the governor dropped his opposition to a casino, which the tribe has been trying to build
for more than a decade.^Ô]
"Northern Nevada Car Dealer Move Sparks Tax Concern, The Associated Press State and Local Wire, Ocotober 21, 2003. Copyright 2003 The Associated
Press.

["CARSON CITY, Nev.: A planned move by a Mercedes car dealership and service center onto Reno-Sparks Indian Colony land has caused concern about loss of tax revenue both for the state and local government. Michael Pennington, representing the Reno-Sparks Chamber of Commerce, said Tuesday the move could have a projected impact on tax collections of up to $4 million a year in sales taxes, based on information from tribal representatives. Nevada law
prohibits the state from collecting the tax if it has an agreement with a tribe to charge the same level on the Indian land. Under those agreements,
tribes collect and keep those levies. Senate Majority Leader Bill Raggio, R-Reno, has asked for an opinion from Legislative Counsel Brenda Erdoes on
whether the car dealership would be exempt from the sales tax if the tribe charged the same rate of taxation. Raggio also said the law allowing the
agreements between the tribes and the state may have to be reconsidered. Asked about a special session of the Legislature, he said that point has not
been reached - 'but if it is necessary, there would be a one-day session.' Greg Bortolin, press secretary for Gov. Kenny Guinn said he's not aware of
any talk about a special session on the tax issue."]

Land Claims/Gaming

"Cayugas Proposed Deal to End Land Claim," William Kates, The Associated Press State and Local Wire, October 21, 2003. Copyright 2003 The Associated
Press.

["SYRACUSE, N.Y.: The Cayuga Indian Nation is offering to drop its pursuit of a $247.9 million judgment and resolve its land claim with New York state
in return for a compact that would allow it to open a casino in the Catskills. The Cayuga plan, outlined in a five-page letter sent to Gov.
George Pataki on Oct. 16, also sought to address taxation issues over the sale of tobacco and gasoline. We want to get these issues resolved,' Clint
Halftown, a spokesman for the Cayugas, said Tuesday. 'We've been landless for 200 years. There's been no settlement talks since 1999. Our land claim
was in district court for 23 years and now it's in the (U.S.) Second Circuit (Court of Appeals), and who knows how long it will be there, and if we'll
have to go further with it,' Halftown said. The Cayugas offered to drop their appeal to the land claim, which seeks to finalize the nearly $248
million judgment against the state awarded by a federal court jury and judge in 2000 and 2001. In exchange, the Cayugas proposed entering into a casino
compact with the state under which the two would share profits from the casino the tribe is seeking to build in Monticello in Sullivan County. The
Cayugas applied to the Bureau of Indian Affairs in April to acquire a trust parcel of land in Monticello. The application is pending, Halftown said."] "Senate Approves $143.9 Million for Loss of Shoshone Lands," The Associated Press State & Local Wire, October 18, 2003.

BIA Reorganization/Federal Trust Relationship

"Parties in 8-Year-Old Indian Lawsuit Agree to Mediation Talks," Robert Gehrke,
The Associated Press State & Local Wire, February 24, 2004. Copyright 2004 The
Associated Press.

["WASHINGTON: For the first time in three years, American Indians seeking money
the Interior Department owes them for use of their lands have agreed to
mediation talks in the coming weeks, lawmakers in Congress said. The agreement
was prompted by congressional members who were frustrated with the high cost
and lack of progress in the 8-year-old case. Rep. Richard Pombo, R-Calif., said
Monday that the agreement 'is historic progress.' 'We may finally see justice
brought to Indian account holders and move beyond this 100 year-old dispute,'
said Pombo, chairman of the House Resources Committee. Indians had sued the
Interior Department in 1996 for mismanaging oil, gas, grazing, timber and other
royalties due to them dating back to 1887. Negotiations in the case broke down
in 2001, with both sides waging a nasty, protracted court battle. In 1999, U.S.
District Judge Royce Lamberth said the government had failed in its obligation
to the American Indian landowners and ordered an accounting of what the Indians
should have been paid."]

February 3, 2004. Copyright 2004 The Deseret News
Publishing Co.

["ROOSEVELT: A federal judge in Washington, D.C., is scheduled to rule
shortly on a federal lawsuit filed last spring by former members of the
Northern Ute Indian Tribe who say their 'divorce' from the tribe should be
reversed. Some 500 disenfranchised Uinta Utes are seeking reinstatement of
their legal designation as members of the eastern Utah tribe. The issue
dates back to the Ute Partition Act of 1954. In theory, all Native Americans
in the country were eventually supposed to be terminated, or no longer be
wards of the federal government, in a quest to make them blend into
America's melting pot. The termination of all Indian tribes was to be
complete by 1961, but the federal plan stalled, and in 1971 President
Richard Nixon completely withdrew the termination act. The 490 Utes, the
first -- and, as it turned out, the only -- group to be terminated from
membership in the Ute Tribe, were targeted for termination based on their
blood quantum, which had to be at least 50 percent Ute Indian. Those who
failed the blood test were stripped of their identity along with additional
land and mineral rights that rightfully belonged to them, said Whiterocks
resident Calvin Hackford, who is an original terminated Uinta band member."]

“Long Awaited Recognition for Schaghticoke: Roils State, Presidential and Tribal
politics,” Jim Adams, Indian Country Today, January 30, 2004. Copyright 2004, Knight
Ridder/Tribune Business News, Copyright 2004, Indian Country Today.

[“DERBY, Conn. -- ‘After years and years and years and years,’ as Chief Richard
Velky put it, the Schaghticoke Tribal Nation received federal recognition at 3 p.m.
Jan. 29, right on the dot of a court-ordered deadline. The decision, signed by
acting BIA head Aurene Martin, immediately caused turmoil in tense state politics
and even impacted the Democratic presidential campaign. It also raised questions
about internal dynamics in the bitterly divided tribe. But for the day it brought an
outburst of celebration at tribal headquarters in this small mill city in the heart
of the state's once thriving manufacturing region. About 100 tribal members cheered
and a drum group beat a victory song as the news emerged from a tribal council
conference call with the BIA. A statement from the office of Assistant Interior
Secretary — Indian Affairs said the Schaghticoke ‘as defined in the Assistant
Secretary's final determination, meets the regulatory requirements for a
government-to- government relationship with the United States.’ The 13-page summary
of the 200-page final report will be published in the Federal Register in the first
days of February, making it official.”]

“Akaka Bill Caught in Congressional Clog,” Associated Press Writer, February 29, 2004. Copyright 2004 Associated Press & Local Wire.
[“Honolulu: The U.S. Senate majority leader says so many bills are clogging the floor it will be hard to find any time to discuss legislation granting federal recognition to Native Hawaiians. Sen. Bill Frist, R-Tenn., said issues including the federal budget are at the top of the list of legislative priorities and debate on the so-called Akaka Bill will not happen anytime soon. But he said he would try to find time for the bill before Congress adjourns in October. If it does not move forward by then, it would need to be introduced for a fifth time when lawmakers return next year. . . .At least one senator placed an anonymous hold on the recognition bill, which is allowed under Senate procedures. Members of Hawaii's delegation discovered the source of the hold but won't reveal who it was. They did say the objection was based on perceived racial preferences. . . .The so-called Akaka federal recognition bill would establish an office in the Department of the Interior to address Native Hawaiian issues and create an interagency group composed of representatives of federal agencies that currently administer programs and policies affecting Hawaiians.”]

"American Indians Consider Political Economy of Reorganizing Federal Agencies," Jerry Reynolds, Indian Country Today, September 10, 2003. Copyright 2003 Knight Ridder/Tribune Business News and Indian Country Today.

["WASHINGTON: You know it's going to be a heavy discussion when the words that frame it include Paul Volcker, Vine Deloria, "fungible" and George W. Bush. But the reorganization of federal agencies under President Bush has become one of the heaviest issues in Indian country. This is primarily because of a BIA
reorganization that tribal leaders and an Indian-specific labor union have continued to resist. But in addition, the Indian Health Service is undergoing
consolidation. Almost two dozen other agencies, some of them with direct roles to play in Indian country, have been consolidated into the Department of
Homeland Security. Finally, courtesy of a Supreme Court decision over Navajo coal that wrote an end to implied federal liability for tribal trust assets
under statutory law, as well as the Cobell litigation over Individual Indian Monies accounts, the very nature of the trust relationship between tribes and
the federal government is changing shape, from a kind of guided self-determination with the government as a fiduciary guarantor toward a self-determination under which market discipline would be the main guarantor of tribal profit, with the government demoted to a custodial position over
properties and rights. Whatever their ultimate degree of implementation, these may represent the most far-reaching changes in Native affairs since the
self-determination laws of more than 25 years ago."]

Tribal Political Authority

“Indians Want Jurisdiction to Combat Terrorism Threat; Opponents of Legislation Fear
Tribal Power Grabs,” Joyce Howard Price, The Washington Times, January 26, 2004,
A07. Copyright 2004, News World Communications, Inc.

[“American Indian tribes are trying to revive an amendment to the Homeland Security
Act that would give them criminal jurisdiction over non-Indians to combat terrorist
threats on Indian lands. But opponents of this move - who include some non-Indians
living on reservations - say it would overturn a 25-year-old Supreme Court decision
‘limiting and defining Indian sovereignty’ and could lead to
tribal power grabs affecting hundreds of thousands of non-Indians. Supporters of
the change deny such claims, saying its purpose is to reclassify tribal governments
as states’ under the HSA law, so tribes can receive sufficient funding and
technical expertise to play a meaningful role in fighting terrorism.”]

“Debate Over Tribal Jurisdiction at Standstill Police on the Omaha Reservation Want
the Authority to Arrest non-Indians,” Paul Hammel, Omaha World Herald (Nebraska),
February 15, 2004, 3b. Copyright 2004, The Omaha World-Herald Company.

[“LINCOLN: Months of negotiations between the state and the Omaha Tribe over
allowing tribal police to gain jurisdiction over non-Indians appear to have left the
parties about where they started. No agreement has been signed. A major issue - the
boundary of the Omaha Reservation and thus where tribal police could patrol - is
still a matter of disagreement. . . . The issue has been an emotional one in
Thurston County, where white farmers have purchased or leased thousands of acres of
reservation land over the years. County officials maintain that the reservation ends
at a railroad right of way just east of Pender, the county seat, citing a 1999 state
court ruling. Tribal leaders, however, say the state cannot change the boundary
Congress set in an 1865 treaty, which is the western border of the county.”]

"Kiowa Tribe Members Attempt HQ Takeover," The Associated Press State & Local Wire, January 7, 2004. Copyright 2004 The Associated Press.

["CARNEGIE, Okla.: Members of the Kiowa tribe tried Wednesday to take over the headquarters of the business committee, a tribal official said.
R.H. 'Hess' Bointy, vice chairman of the Kiowa Business Committee, told The Associated Press that 40 to 50 tribal members were already in the building
when he arrived Wednesday morning. 'They got here a little before 8 a.m. They tried to keep us out but we forced our way in and have tried to do what
tribal business we can,' Bointy said. About 12 business committee members and their security detail were in the building, he said. Attempts to reach
members of the other group weren't immediately successful. Those in the building have requested access to the financial records of the Kiowa
Business Committee, but Bointy said granting the request would make it impossible for employees to get any work done."]

"Tribal Libel Law Ensnares Northern Nevada Woman," The Associated Press State & Local Wire, January 6, 2004. Copyright 2004 The Associated Press.

["CARSON CITY, Nev.: When Patty Hicks couldn't get satisfactory answers about spending by her Walker River Paiute Indian Tribe on a dam improvement
project, she started a recall effort aimed at two council members. But her effort could net the 60-year-old great-grandmother a six-month jail term. To
get signatures for the recall, Hicks e-mailed another tribal member and criticized tribal Water Resource Coordinator Elveda Martinez for the work
under way to rebuild Weber Dam. Part of the e-mail, dated Oct. 3, read: 'Every one of her projects have been flops and couldn't be finished.
We're talking millions wasted. As far as I am concerned, she (Martinez) should be in prison for raping our tribe.' Martinez swore out a complaint
charging Hicks with criminal defamation. Hicks faces a Jan. 23 trial in tribal court."]

Economic Development

["Moccasin, Ariz.-Area Tribe Struggles to Survive after Casino Failure," Mark Shaffer, Indian Country Today, January 7, 2004. Copyright 2004 Knight
Ridder/Tribune Business News and Indian Country Today.

["MOCCASIN, Ariz.: Predictions of gloom and doom abounded. Some of the members of the Kaibab Band of Paiutes on this lonely stretch of Arizona
highway north of the Grand Canyon even called for the tribe to disband after its Pipe Springs Casino went under seven years ago. After all, this was one
of those strange anomalies. In a landscape full of wildly successful gaming stories from the nation's reservations, the Kaibab-Paiutes were one of only
a handful of tribes that couldn't make it work. But, shed no tears for the 250 members of the tribe. There is life after slot machines. A sparkling
new, more-than-$ 1 million, tribal government and community center just opened after years of lobbying for grants. The Kaibab-Paiutes have tapped
into tourism by building a museum and visitors' center which links with the national Park Service's Pipe Springs National Monument, a frontier Mormon
fort and settlement. The tribe's big-game hunting business in the nearby hills is flourishing. A tribally owned gas station and convenience store is
doing marquee business along Arizona Highway 389, near the site of the old casino. Business has been so good, tribal Chairwoman Carmen Bradley's two
young daughters opened a snow cone stand next door. And, the tribe is positioning itself, after a $ 900,000 U.S. Department of Agriculture grant
for rural economic development, to be a regional provider for high-speed Internet access in northwestern Arizona and southwestern Utah."]To see more of Indian Country Today, or to subscribe to the newspaper, go to http://www.indiancountry.com

"Just Imagine: Tribes Look at Ways to Invest Casino Profits," Clarke Canfield, The Associated Press State & Local Wire. October 9, 2003
["Portland, Maine: . . . . tribal leaders are meeting with financial advisers, assessing their needs and building a framework for how to manage
the money. Between them, the tribes expect to receive $50 million to $100 million a year in casino profits. . . .There are more than 600 casinos
nationally in more than half the states. At the end of last year, 330 of those were Indian operations, generating $14.5 billion in revenues,
according to the National Indian Gaming Commission. Those tribes are bound by the federal Indian Gaming Regulatory Act, which specifies how casino
revenues can be spent. The act says profits can be used to fund tribal government operations, promote economic development, donate to charity and
provide for the general welfare of the tribes. Only then, the law says, are tribes allowed to distribute money to individual tribal members. The
federal Bureau of Indian Affairs must approve any plan on how the money will be distributed. The Maine tribes, however, are not subject to IGRA,
because of the 1980 Maine Indian Land Claims Act. In the federal government's eyes, a Maine casino - if approved by voters Nov. 4 - would
not be an "Indian casino" even though it would be owned by Indian tribes. Instead, it would be categorized as a commercial casino, meaning the tribes
could do whatever they want with their profits - the only tribes nationwide that can make that claim."]


Gaming

"Constitutional Amendment Proposed on Casinos," Mark Johnson, The Associated Press
State & Local Wire, February 12, 2004. Copyright 2004 The Associated Press.

["ALBANY, N.Y.: State leaders are considering an amendment to the state constitution
that would allow non-Indians to open casinos, officials said Thursday. The move
could push several Indian nations to resolve differences with the state and complete
the six casinos the governor and Legislature authorized the tribes to open in 2001,
some officials said. 'This certainly will put pressure on Native Americans to
rethink their positions,' said Orange County Republican state Sen. John Bonacic, the
bill's Senate sponsor. 'But whether they do or not, this will continue to go
forward.' Kevin Quinn, a spokesman for Gov. George Pataki, said the governor has
been 'exploring this type of constitutional amendment.' Assembly Speaker Sheldon
Silver said he is opposed to the amendment, fearing it could delay the construction
of casinos even longer. He said it was too early to tell whether it would pass the
Assembly or Senate."]


"Ho-Chunk Members Talk to Casino Foes," Lesley Rogers, Wisconsin State Journal (Madison, WI), January 6, 2004, A1. Copyright 2004 Madison
Newspapers, Inc.

["Opponents of a proposed Madison casino spoke face-to-face with members of the Ho-Chunk Nation on Monday night in the first large-scale meeting on a
Feb. 17 casino referendum. Monday's meeting, called by the grass-roots group No Dane Casino, featured several anti-casino speakers and included a lively
question-and-answer session with about 200 people at the Madison Civic Center's Marquee Room. No Dane Casino is pushing f
or a 'no' vote in a countywide referendum to expand gambling at DeJope Bingo Hall on the Southeast Side. Members say they're concerned about the negative economic impact on Downtown businesses and the societal ills gambling might bring. If the casino is approved, Madison and Dane County will each get about $3.5
million a year, possibly much more, from the Ho-Chunk, indefinitely. Mayor Dave Cieslewicz opposes expanded gambling, but County Executive Kathleen
Falk is in favor and has said she would use the money for property tax relief and human services. Ho-Chunk members attended Monday's meeting and
addressed the crowd after questions arose about why the tribe may get the right to expand DeJope into a casino offering games such as poker, blackjack
and roulette. Ken WhiteHorse, a Madison schoolteacher and Ho-Chunk member, said he's worried the issue will divide the community. He said he wanted to
show the crowd 'the human side,' and stressed that the Ho-Chunk use gambling profits to educate their members, build homes for the elderly and provide
medical care."]

Sovereignty

ÓFederal Judge Affirms Indian Tribe's Right to Register Vehicles,^Ô Carl Manning, The Associated Press State & Local Wire, August 7, 2003.

[^ÓTOPEKA, Kan.: A federal judge's decision affirming the right of Kansas' largest Indian tribe to issue its own license plates is an important
reinforcement of Indian sovereignty, a tribal official said Thursday. In a 41-page ruling issued late Wednesday, U.S. District Judge Julie Robinson
permanently barred the state from imposing its vehicle registration laws on the Prairie Band Potawatomi.^
^ÓTribes Making Play for More Jurisdiction; State AGs Alerted: American Indians Propose Taking Control of Criminal and Civil Matters on Tribal Lands,^Ô Rhina Guidos, Salt Lake Tribune (Utah), July 29, 2003, B5. Copyright 2003, The Salt Lake Tribune.

[^ÓPARK CITY -- On Monday, at an annual meeting of Western attorneys general, a Nevada lawyer described a strong yank coming from American Indian tribes. . . . Howle said that in a document that has been floating around tribal circles for the past two years, tribes have expressed: that they want to seek criminal and civil jurisdiction over everyone in Indian Country, that they want state authority in Indian lands eliminated, and that they want full authority over
state highways on reservations.^Ô]

"Tribal Courts Have Jurisdiction on Lands Outside Reservation, Supreme Court Says," The Associated Press State and Local Wire, June 11, 2003. Copyright 2003 The Associated Press.
["Santa Fe: The state Supreme Court ruled Tuesday that Navajo tribal courts have jurisdiction in civil matters on allotted Indian lands outside the
reservation boundaries. The ruling was handed down in the case of Leonard Belone, a Navajo whose car was repossessed in 1998. Belone lives in McKinley
County on allotted Indian lands that are held in trust..."]

Land Settlement

["LAS VEGAS: The Senate has approved legislation paying Western Shoshone Indians $143.9 million for land taken from their ancestors by the U.S. government. . . . The legislation would permit the Interior Department to distribute about $142 million
that has been sitting in a trust fund account since 1979 to an estimated 4,500 Western Shoshone, according to tribal leaders. The remaining $1.4 million would be placed in an education trust fund. . . . Rep. Jim Gibbons, R-Nev., the chief sponsor of the bill in the House, said congressional leaders have promised a vote on it but have not said when. Western Shoshone have been waiting for money since the Indian Claims Commission in 1972 awarded them payment for 60 million acres of ancestral land, which spanned parts of Nevada and three other Western states. The commission concluded that the Western Shoshone had gradually lost their land because of encroachment by U.S. settlers despite the 1863 Treaty of Ruby Valley that recognized it as Indian territory."]

"Congressional Measure on Shoshone Payments Advances Toward Vote," The Associated Press State & Local Wire, September 25, 2003. Copyright 2003 The Associated Press.
["Washington D.C.: A bill that has divided Western Shoshone Indians over whether to accept a $130 million government payout has been approved by a congressional committee. Rep. Jim Gibbons, R-Nev., said the 21-14 vote Wednesday by the House Resources Committee moved the bill closer to a floor vote this fall. The bill would authorize payments of about $30,000 to 6,500 tribal members. The money is part of a 1946 Indian Claims Commission judgment against the U.S. government for taking Western Shoshone lands in the 19th century. The bill would also set up a $1.3 million tribal education trust fund. . . . Tribal dissidents say the vote was flawed. Several lawmakers echoed the concern. Rep. Frank Pallone, D-N.J., said there were no voter rules or guidelines, no provision for
confidentiality and no independent observers. "]