Tribal Online Lenders Need a Legal Attitude Adjustment

A review of recent federal judicial decisions against tribal online lenders shows that they are losing the war--resoundingly. Arguments under Tuscarora that federal consumer protection laws of general applicability, have fallen flat. Arguments that these tribal enterprises are immune from federal enforcement action (see U.S. v. James), have not surprisingly fared even worse. Tribal sovereignty is being eroded in the process of each federal court controversy.

The tribal online lending industry needs a legal attitude adjustment. Or is it only a matter of time before the industry meets its demise. Instead of throwing traditional federal Indian legal arguments against the walls of federal courthouses, in hope that they stick--they haven't yet--the industry needs to heed lessons learned by other tribes when over-zealous federal agencies like the IRS, FBI or ATF come barreling onto an Indian reservation or into a tribal economy.

Among other non-conventional tribal defense strategies, one that has been deployed effectively against such federal agencies of late is preemptive consultation:

[C]onsultation can be used as a sword—a preemptive strike that forces U.S. agencies to consult before taking action in Indian country—as well as a shield to guard from federal and private attacks on Indian sovereignty. As it stands, several federal agencies freely enforce their prerogative over tribes, under the guise of so-called federal laws of general applicability and increasingly with federal court approval. Still, at each stage of federal encroachment or enforcement, federal law requires consultation with tribal officials.

See e.g. "ATF Withdraws PACT Act FAQs; Downgrades Tobacco Investigations?"

As counter-intuitive as it might be for tribes to bring their enemies close (as Sun Tzu and Michael Corleone both advise), that is exactly what those tribes that are involved in online and are under federal siege, should do in hopes of regaining some battle ground. That is because if the FTC or CFPB violates normative protocols for pre-enforcement consultation between sovereigns, the agency can be sued under the APA and enjoined or stymied from proceeding. This strategy is fully discussed in "The Federal Indian Consultation Right: A Frontline Defense Against Tribal Sovereignty Incursion."

After all, what else, or how much longer, can the tribal online lending industry stand to lose?

Gabriel “Gabe” Galanda is the Managing Partner at Galanda Broadman. He is an enrolled member of the Round Valley Indian Tribes of Covelo, California. Gabe can be reached at 206.300.7801 or gabe@galandabroadman.com.

Truth & Reconciliation Re: The Fish Wars

Yesterday Governor Jay Inslee signed Washington HB 2080, which vacated pre-1975 state court convictions of tribal members who were engaged in Treaty fishing activities.  Reconciliation.

Today a piece by Gabe Galanda, "Washington Tribal/State Relations Evolving, But Further Work Is Needed," was published in the Spring 2014 edition of Indian Law Newsletter.  Truth.

A passage:

Over the next decade Washington’s “fish wars” ensued, with state and local law enforcement utilizing criminal arrest to deprive Indians of Treaty-reserved fishing rights, making matters even worse.  An epic clash of sovereigns ensued in the U.S. v. Washington litigation, resulting in a controversial decision by U.S. District Court Judge George Boldt that guaranteed the Tribes half of the fish harvest and by 1979, a momentous Indian victory before the U.S. Supreme Court.

The state was so resistant of Judge Boldt’s decision that the Ninth Circuit Court of Appeals compared it to states in the Deep South that refused to abide by federally mandated desegregation.  “Except for some segregation cases . . . the district court has faced the most concerted official and private efforts to frustrate a decree of a federal court witnessed in this century,” appellate court justices said of the Boldt Decision.  In the end, the judicial affirmation of the Tribes’ reserved Treaty right to fish, expressed as “their source of food and commerce,” solidified a foundation for the economic development we are witnessing today throughout Washington Indian Country.

Above all, though, “the Boldt Decision” entrenched Washington Tribes as a legal and political force to be reckoned with.

And a Tribute:

He dedicates this article to those Washington Indians who fought the fish wars and to the tribal lawyers who won the Boldt Decision.

Gabriel “Gabe” Galanda is the Managing Partner at Galanda Broadman. He is an enrolled member of the Round Valley Indian Tribes of Covelo, California. Gabe can be reached at 206.691.3631 or gabe@galandabroadman.com.

Seattle Indian Lawyer Amber Penn-Roco Featured By Indian Country Today

New Galanda Broadman Associate Amber Penn-Roco is featured by Indian Country Today in an article titled, "Galanda Broadman Add to Indian Lawyer Bench With Addition of Penn-Roco."

The bright young mind of Amber Penn-Roco, an enrolled member of the Chehalis Tribe, has joined the team of Galanda Broadman.

The Indian lawyer deepens the already strong bench at the Washington state-based law firm, and comes from K+L Gates, Seattle’s second largest law firm, where she was an associate for three years.

“Amber is one of the best and brightest young Indian lawyers around,” Gabe Galanda, the firm’s managing partner said. “As our tribal law firm continues to grow, we remain very grateful to our tribal clients for the trust they put in us and the opportunity to fight for Indian country.”

Amber’s practice focuses on complex land and environmental issues and multi-party litigation involving tribal sovereignty, torts and hazardous materials. Her experience also includes work on transactional matters, including entity formation, environmental compliance and permitting. Amber’s work includes facilitating business developments in Indian Country.

ATF Withdraws PACT Act FAQs; Downgrades Tobacco Investigations?

As reported this week in the Times Argus, the ATF has withdrawn a controversial set of Frequently Asked Questions (FAQ), which states were using to regulate and tax--and essentially vitiate--inter-tribal tobacco commerce. While some speculate that ATF has in very recent times diverted federal attention away from tobacco-diversion investigations, Indian Country should remain vigilant in defense of state PACT Act, CCTA and other tobacco tax enforcement efforts.

According to the Times Argus:

ATF took down a frequently-asked-questions Web site posting attached to its explanation of the PACT Act. The FAQ stated that the law clearly applied to wholesalers and distributors on Indian reservations.

“We are concerned that the removal of the FAQs may evidence a determination by ATF to narrow its current interpretation of the PACT Act to exclude various tribal cigarette sales and shipments,” [Idaho AG Lawrence] Wasden wrote in the Feb. 21 letter to Holder. . . .

ATF took the FAQs down after meeting with tribal representatives because the answers were three years old and “it was time to review (them) based upon the passage of time and the experience gained in enforcing the PACT Act,” [ATF spokeswoman Ginger] Colbrun said in an email statement. “We’ve committed to reviewing the FAQs, but not to making any specific changes unless we conclude they are warranted by the law.” . . .

In recent years, ATF has backed off enforcement of laws governing “tobacco diversion” — underground smuggling of cigarettes from Indian reservations to urban markets or from low-tax states in the South to high-tax states like New York and Connecticut.

Last year, the Albany Times Union obtained an ATF memo that directed agents to downgrade tobacco-diversion investigations unless there is a “nexus” to violent crime.

Indian Country had openly questioned the ATF's written position regarding state enforcement of the PACT Act per the withdrawn or "taken down" FAQs, specifically:

1. The scope of “lawfully operating” as that term is used in 15 U.S.C. § 375(4)((B);
2. The scope of “Delivery sales” in regard to wholesale shipments made to reservation retailers intended for resale in a “face to face” transaction;
3. The PACT Act “list;” and
4. The PACT Act definition of “interstate commerce” and its relationship with commerce occurring between different Indian reservations.

Of particular concern was Issue No. 1, as ATF took the position in the FAQs that to be “lawfully operating,” a business must possess all state licenses regardless of whether that business is operating in Indian Country. The ATF's position, which represented a wholesale incorporation of state law into Indian Country, is specifically prohibited by the plain language of Section 5 of the PACT Act.

Still, Indian Country should not let its guard down against the states for an upstate New York minute.

Gabriel “Gabe” Galanda is the Managing Partner at Galanda Broadman. He is an enrolled member of the Round Valley Indian Tribes of Covelo, California. Gabe can be reached at 206.691.3631 or gabe@galandabroadman.com.

Joe Sexton Featured as Attorney "Super-Commuter" in NWLawyer Magazine

Joe Sexton, Of Counsel at Galanda Broadman, is featured in this month’s edition of NWLawyer magazine as an attorney "super commuter."

Joe considered two factors as central to his decision to super-commute: time with his family and acquisition of his dream job. "I just had my first child," said Joe, "and my working from home provides flexibility in helping my wife care for our newborn." The arrangement also enables him to work for Seattle-based firm Galanda Broadman, which he describes as "one of the leading Indian law firms." . . .

Joe's firm is pretty high-tech. The five attorneys maintain near-constant contact via video chat and instant message. They also text and email. "Actually, I'm more in contact with my colleagues than I've ever been before in my career," Joe observed. Joe has found that working remotely has actually strengthened his personal relationships. He reflected that most attorneys have put effort into maintaining a balance between their work and personal lives. "It's a constant work in progress," he observed, but "I think my love for what I do and for the clients I serve also helps me feel balanced and fulfilled in my personal relationships."

Joe Sexton is Of Counsel with Galanda Broadman, PLLC.  Joe’s practice focuses on tribal sovereignty issues, including complex land and environmental issues, and economic development matters.  He can be reached at (509) 910-8842 and joe@galandbroadman.com.

Gabe Galanda to Lecture on Tribal Disenrollment Law at Berkeley

On Monday, March 17, Gabe Galanda will lecture at UC Berkeley regarding the legalities associated with tribal disenrollment controversies. His remarks will be for the “Native American Critical and Legal Policy” seminar taught by Ethnic Studies professor, Thomas Biolsi. Gabe will speak from two essays recently published by his law firm: “An Essay on the Federal Origins of Disenrollment” and “An Essay on the Modern Dynamics of Tribal Disenrollment.” Professor Biolsi has included Roberts v. Kelly, a disenrollment controversy involving the Nooksack 306 that is currently pending before the Nooksack Judiciary, in his course syllabus. Gabriel “Gabe” Galanda is the Managing Partner at Galanda Broadman. He is an enrolled member of the Round Valley Indian Tribes of Covelo, California. Gabe can be reached at 206.691.3631 or gabe@galandabroadman.com.

An Essay on the Modern Dynamics of Tribal Disenrollment

Disenrollment is predominately about race, and money, and an "individualistic, materialistic attitude" that is not indigenous to tribal communities.

Because many tribes have maintained the IRA’s paternalistic and antiquated definition of “Indian” vis-a-vis blood quantum (as discussed in "An Essay on the Federal Origins of Disenrollment"), tribal membership has largely become “an explicitly racial conception of Indian identity.” Suzianne D. Painter-Thorne, If You Build It, They Will Come: Preserving Tribal Sovereignty in the Face of Indian Casinos and the New Premium on Tribal Membership, 14 Lewis & Clark L. Rev. 311 (2010).

The racial construct has worked well for disenrollment as "American Indians have one of the highest rates of interracial marriage in the U.S."  Gosia Wozniacka, Disenrollment leaves Native feeling 'culturally homeless', Associated Press, Jan. 21, 2014.  Indeed, Indians of any quantum (defined as "portion") of Indian blood are by federal design, multi-racial. In addition, "many Native Americans don’t live on reservations, speak Native languages or 'look' Indian, making others question their bloodline claims." Id.  In those illustrative ways, Indian conceptions of both race and class converge, with tribal classism also catalyzing disenrollment.

In turn, tribal officials who wish to target political foes or large swaths of politically weak or unpopular members, can “voluntarily invoke race-based definitions of ‘Indian’ [to] narrow the pool of tribal members, perhaps in an effort to limit gaming revenue and federal dollars to [those targeted] tribal members.”Painter-Thorne,  supra.  These disenrollment stories bear this out.   See e.g. Liz Jones, 'We'll Always Be Nooksack':Tribe Questions Ancestry of Part-Filipino Members, NPR/KUOW, Dec. 16, 2013; Joanne Barker, The True Meaning of Sovereignty, New York Times, Sept. 16, 2011.  

The “forced transition to a cash economy” has likely played a large part in the dramatic spike in disenrollment as well.  Jana Berger & Paula Fisher, Navigating Tribal Membership Issues, Emerging Issues in Tribal-State Relations 61, 66 (2013).  Prior to the recent disenrollment epidemic, which is estimated to have already vanquished over 11,000 Indians, tribal governments were very inclusive, frequently wanting to have large "membership" numbers.  Aside from a greater amount of funding from federal agencies relative to increased tribal membership, from a practical standpoint tribal governments recognized that “there is strength in numbers.”  Id. 

But over the last couple decades, as tribes became more dependent on the U.S. economic free-market system, primarily through gaming entrepreneurship, disenrollment began to rear its ugly head.  According to Charles Wilkinson,

Just as federal education practices reverberated throughout tribes, so too did the forced transition to a cash economy. The concept of sharing, integral to Indian societies, did not jibe well with the individualistic, materialistic attitude that drove the nation’s economic system. As one Navajo stated, “When a relative needed help, you helped them out. When you needed something else, you could rely on a relative to help out, it all worked out in the long run. With money it doesn’t work anymore, now the relative with the money is expected to help out, what is needed for most everything is money and the poor relatives never have any.”

Blood Struggle: The Rise of Modern Indian Nations 54 (2006).

As Professor David Wilkins observes, tribal communities historically used ceremony and prayer to resolve intra-tribal tension or conflict; because traditionally speaking, "you don't cast out your relatives." Wozniacka, supra.  But today, when the political going gets rough in tribal communities, the individualistic, materialistic Indian attitude that Professor Wilkinson describes, increasingly leads to disenrollment of one's own relatives--instead of towards any holistic or indigenous values-based solution.

Galanda Broadman is an American Indian owned firm dedicated to advancing tribal legal rights and Indian business interests. The firm represents tribal governments, businesses and members in critical litigation, business and regulatory matters, especially in the areas of Indian Treaty rights, tribal sovereignty, taxation, commerce, personal injury, and human/civil rights.

Indian Lawyer Amber Penn-Roco Joins Galanda Broadman

Galanda Broadman has deepened its bench by adding another Indian lawyer: Amber Penn-Roco. Amber, an enrolled member of the Chehalis Tribe, comes to the firm as an Associate after a three-year stint at K+L Gates, Seattle’s second largest law firm.

“Amber is one of the best and brightest young Indian lawyers around,” said Gabe Galanda, the firm’s managing partner.  “As our tribal law firm continues to grow, we remain very grateful to our tribal clients for the trust they put in us and the opportunity to fight for Indian Country.”

Amber’s practice focuses on complex land and environmental issues and multi-party litigation involving tribal sovereignty, torts and hazardous materials.  Her experience also includes work on transactional matters, including entity formation, environmental compliance and permitting.

Prior to working at K&L Gates, Amber worked in the Native American Unit of the Northwest Justice Project, which strives to afford access to justice to low-income tribal populations. She has served as a Governing Council Member of the Northwest Indian Bar Association.

Amber is a graduate of University of Washington School of Law, and Washington State University (summa cum laude).  While in law school, she served as President of both the Native American Law Students’ Association and the Minority Law Students’ Association.

Galanda Broadman was recently named to the 2014 Edition of U.S. News – Best Lawyers “Best Law Firms,” in the arena of Native American Law.  The six-lawyer firm, which styles itself  “An Indian Country Law Firm,” is dedicated to advancing tribal legal rights and Indian business interests.  With offices in Seattle, Washington and Bend, Oregon, the firm represents tribal governments, businesses and members in critical litigation, business and regulatory matters, especially in matters of Indian Treaty rights, tribal sovereignty and taxation.

Seattle Tribal Lawyer to Again Teach Minority Lawyers How To Build a Book of Business

On March 27, Gabe Galanda will help teach the King County Bar Association's annual Building a Book of Business: For Attorneys of Color program in Seattle. He delivered the same teachings last year.

KCBA's Diversity Committee is proud to host this annual seminar designed to give recently admitted attorneys of color the skills they need to advance in their careers.unique program is a closed door session where you will learn to effectively market yourself and acquire new clients for your firm. You'll gain valuable networking contacts and receive guidance from some of the most well-respected and successful leaders in our region's minority bar community.

In 2010, Gabe co-founded Galanda Broadman, PLLC, an American Indian owned law firm with six lawyers, and offices in Seattle, Washington and Bend, Oregon. Prior to that. Gabe founded the Tribal Practice Group at Williams Kastner, where he was a "first ballot" equity partner and an elected member of the firm's Board of Directors. Gabe has been named to the prestigious "40 Under 40" listing by Puget Sound Business Journal, and the "Native American 40 Under 40" listing by the National Center for American Indian Economic Development.

Gabriel "Gabe" Galanda is the Managing Partner at Galanda Broadman.  He is an enrolled member of the Round Valley Indian Tribes of Covelo, California.  Gabe can be reached at 206.691.3631 or gabe@galandabroadman.com.

An Essay on the Federal Origins of Disenrollment

Disenrollment is not indigenous to Native America.  It is a creature of the United States. The origins of tribal "disenrollment" are traced to the United States’ paternalistic assimilation policies of the 1930s.  (Federal Indian rolls and removal therefrom date back even further--to the early 1800s.)

In 1934 the U.S. Congress passed the Indian Reorganization Act (“IRA”), wherein the federal government took an extremely active role in framing tribal membership rules.  The IRA contained a definition of who would be recognized as an indigenous person by the federal government: The individual must be a descendant of a member residing on any reservation as of June 1, 1934, or a person “of one-half or more Indian Blood.”  25 U.S.C. § 476.

The United States’ intent was to limit membership “to persons who reasonably can be expected to participate in tribal relations and affairs.”   Office of Indian Affairs, U.S. Dep't of the Interior, Circular No. 3123 (1935), reprinted in 2 Am. Indian Policy Review Comm'n, 94th Cong., Task Force No. 9 Final Report app. at 334 (Comm. Print 1977).  The IRA also urged tribes to adopt a constitution and included a boilerplate that tribes were encouraged to adopt.  And because tribal constitutions were subject to federal approval, the IRA definition of “Indian,” including its blood quantum requirement or some variation thereof, as well as concepts of "disenrollment," found their way into most tribal constitutions, even those that did not adopt the boilerplate IRA constitution.

In fact, even those tribes that opted to forego adopting a constitution were often persuaded to adopt these concepts somewhere in their organic law as a “consequence of the [federal government]’s control over federal services and tribal monies.”  Suzianne D. Painter-Thorne, If You Build It, They Will Come: Preserving Tribal Sovereignty in the Face of Indian Casinos and the New Premium on Tribal Membership, 14 Lewis & Clark L. Rev. 311, 341 (2010).

Thus, “while it is true that membership in an Indian tribe [wa]s for the tribe to decide, that principle is dependent on and subordinate to the more basic principle that membership in an Indian tribe is a bilateral, political relationship” under which the United States had set the terms.  Margo S. Brownell, Who is an Indian? Searching for an Answer to the Question at the Core of Federal Indian Law, 34 U. Mich. J.L. Reform 275, 307 (2001).  The Indian Self-Determination Education Assistance Act of 1975, additionally required that tribal governments devise formal membership regulations, in order for the tribe to receive certain federal self-determination funding.  The United States suggested such regulations, which like its boilerplate IRA constitutions, included notions of blood quantum and disenrollment.

In all, for the last 80 years, the United States has set the terms of tribal membership, i.e., "Indian," "blood quantum," "membership," "base rolls," and of course "disenrollment."  And for good measure, tribal acceptance and implementation of those unconscionable terms have been conditions precedent to self-determination funding since the 1970s.

Despite having invented disenrollment and foisted it upon tribal governments, the United States now suggests that it has no "business trampling on tribal sovereignty and self-governance" by interceding in tribal disenrollment disputes.  Or, as Nooksack Councilwoman Michelle Roberts -- a member of a the Nooksack 306 -- put it to Assistant Secretary of Indian Affairs Kevin Washburn: "It is Frankenstein in Indian country that the United States has created, and now ignores."

Galanda Broadman is an American Indian owned firm dedicated to advancing tribal legal rights and Indian business interests. The firm represents tribal governments, businesses and members in critical litigation, business and regulatory matters, especially in the areas of Indian Treaty rights, tribal sovereignty, taxation, commerce, personal injury, and human/civil rights.