Oregon Tribal Lawyer Anthony Broadman Talks About Cities' Role in the Future of Indian Gaming

This month's edition of Indian Gaming magazine leads with an article by Bend, Oregon tribal lawyer Anthony Broadman about the increasingly pervasive role of cities in budding Indian gaming developments.

Where do businesses target high density customer bases? Where can tribal governmental gaming expand in the post-exclusivity age? The answer to both questions is the same: Cities. As tribes seek new markets, and novel revenue sources, we are seeing an uptick in conflicts in connection with attempts to capture urban gaming markets. These are both the Hail-Mary lawsuits of anti-gambling community organizations and high-level intergovernmental disputes among cities, states, the BIA, and competing tribal governments.

Anthony Broadman is a partner at Galanda Broadman PLLC. He can be reached at 206.321.2672, anthony@galandabroadman.com, or via www.galandabroadman.com.

ATNI Resolves to Protect American Indigenous Prisoners' Religious Freedoms

This week, the Affiliated Tribes of Northwest Indians (ATNI) resolved that it "denounces and opposes any inappropriate or illegal federal, state or local government restriction upon incarcerated American Indigenous Peoples’ inherent rights to believe, express, and exercise traditional indigenous religion, including any such restriction that does not advance the shared penological goals of federal, state and American indigenous governments or that was not preceded by meaningful tribal consultation with affected ATNI tribes or other American indigenous governments." ATNI further resolved to denounce and oppose "the California Department of Corrections and Rehabilitation’s 'emergency' amendments to Section 3190(b) of the California Code of Regulations, Title 15, Crime Prevention and Corrections, and related regulatory restrictions regarding American Indigenous Peoples’ religious properties and sweatlodge ceremonies, because those state regulations violate federal, state and international law, were promulgated without any consultation with American indigenous governments, and are contrary to the penological interest of rehabilitating incarcerated American Indigenous Peoples."

To read ATNI Resolution #13-63, click here.

Huy Launches Formal Opposition to Caifornia's Violation of Native Prisoners' Religious Freedoms

Today, Huy joined the Round Valley Indian Tribes, Pit River Tribe Huy, the National Native American Bar Association and others in formal protest of the California Department of Corrections and Rehabilitation's issuance of a provisional "emergency" regulation denying indigenous prisoners access to items used in religious ceremony and access to sweatlodge ceremony. Huy's protest letter is here. Huy urges others to do so by written communication or in person by tomorrow, May 7, as outlined below. This national inter-tribal protest movement was featured by Indian Country Today last week. In short:

In February, the California Department of Corrections and Rehabilitation (“CDCR”) provisionally outlawed, on a so-called “emergency” basis, American indigenous prisoners’ religious use of: tribal sacred medicines like kinnikinnick, copal, and osha root; indigenous sacred items like pipes and pipe bags, drums and other instruments, and water dippers; and tribal religious necessities like cloth for prayer ties, beads and beading supplies, and animal hides and teeth. It appears the indigenous prisoners’ sweatlodge ceremonies have also been curtailed being reduced from occurring every weekend to only one or two times per month.

Any person, group or tribe may submit written comments about what remains a proposed CDCR religious property regulation to CDCR, Regulation and Policy Management Branch (RPMB), P.O. Box 942883, Sacramento, CA 94283-0001, or by fax to (916) 324-6075, or by e-mail to RPMB@cdcr.ca.gov. All written comments must be received by the close of the public comment period this Tuesday, May 7, 2013, at 5:00 p.m.

Also, a public hearing will be held this Tuesday, May 7, 2013 from 10:00 a.m. to 11:00 a.m. in Sacramento, specifically in the Kern room, located at 151 S Street, North Building, 95811. The CDCR will then consider comments, evaluate proposed alternatives, and issue a final rule.

We urge your timely written and public comment in opposition to the State of California’s unlawful effort to unduly restrict American indigenous prisoners’ freedom to believe, express and exercise traditional indigenous religion.

For additional information, contact Huy Chairman Gabriel S. Galanda, at (206) 300-7801 or gabe@galandabroadman.com.

Round Valley & Pit River Tribes Protest California's Violations of Native Prisoners' Religious Rights

The Round Valley Indian Tribes and Pit River Tribe joined Huy, the National Native American Bar Association and others in protest of the California Department of Corrections and Rehabilitation's issuance of a provisional "emergency" regulation denying indigenous prisoners access to items used in religious ceremony and access to sweatlodge ceremony. This national inter-tribal protest movement was featured by Indian Country Today this week. In short:

In February, the California Department of Corrections and Rehabilitation (“CDCR”) provisionally outlawed, on a so-called “emergency” basis, American indigenous prisoners’ religious use of: tribal sacred medicines like kinnikinnick, copal, and osha root; indigenous sacred items like pipes and pipe bags, drums and other instruments, and water dippers; and tribal religious necessities like cloth for prayer ties, beads and beading supplies, and animal hides and teeth. It appears the indigenous prisoners’ sweatlodge ceremonies have also been curtailed being reduced from occurring every weekend to only one or two times per month.

Any person, group or tribe may submit written comments about what remains a proposed CDCR religious property regulation to CDCR, Regulation and Policy Management Branch (RPMB), P.O. Box 942883, Sacramento, CA 94283-0001, or by fax to (916) 324-6075, or by e-mail to RPMB@cdcr.ca.gov. All written comments must be received by the close of the public comment period this Tuesday, May 7, 2013, at 5:00 p.m.

Also, a public hearing will be held this Tuesday, May 7, 2013 from 10:00 a.m. to 11:00 a.m. in Sacramento, specifically in the Kern room, located at 151 S Street, North Building, 95811. The CDCR will then consider comments, evaluate proposed alternatives, and issue a final rule.

We urge your timely written and public comment in opposition to the State of California’s unlawful effort to unduly restrict American indigenous prisoners’ freedom to believe, express and exercise traditional indigenous religion.

For additional information, contact Huy Chairman Gabriel S. Galanda, at (206) 300-7801 or gabe@galandabroadman.com.

Galanda Broadman Named "Gaming Law Firm of the Year in Washington"

Corporate INTL magazine has chosen the Pacific Northwest tribal law firm Galanda Broadman, PLLC, as the Boutique winner of the 2013 Corporate Intl Magazine Legal Award for "Gaming Law Firm of the Year in Washington." The award follows several recent honors for Galanda Broadman and its lawyers. In November 2012, Galanda Broadman received a prestigious Tier 1 ranking in the 2013 Edition of U.S. News – Best Lawyers “Best Law Firms,” in the arena of Native American Law. In addition, firm partner Gabe Galanda was then named to The Best Lawyers in America in the practice areas of both Gaming Law and Native American Law, for the seventh straight year. He was named a “Difference Maker” by the American Bar Association in November as well.

In December 2012, Lawyers of Color listed the firm in its Big Book of the Best Boutiques, an exclusive, national listing of the top minority law firms in each state. Then, in January 2013, Seattle Business Magazine honored Gabe as one of “the Puget Sound Region’s Best Lawyers for 2013,” in both the arenas of Native American Law and Gaming Law.

Galanda Broadman, “An Indian Country Law Firm,” is dedicated to advancing tribal legal rights and Indian business interests.  The firm, with offices in Seattle, Washington and Bend, Oregon, represents tribal governments, businesses and members in critical litigation, business and regulatory matters, especially in matters of Indian Treaty rights, tribal sovereignty and taxation.

Gabe is an enrolled member of the Round Valley Indian Tribes of California. He currently sits on the National Native American Bar Association (NNABA) Board of Directors, chairing the group’s “Include Indian Law on State Bar Exams” Initiative, and co-chairing its “Increase Natives and Tribal Court Judges in the Judiciary” Initiative. Gabe is a past President of the Northwest Indian Bar Association and past Chair of the Washington State Bar Association (WSBA) Indian Law Section.

Firm partner Anthony Broadman is the immediate past Chair of the WSBA Administrative Law Section, and author of “Administrative Law in Washington Indian Country.”  In September 2012, Anthony was specially honored for his outstanding service as Chair of the Administrative Law Section.  He is a former Trustee of the WSBA Indian Law Section, and also serves as Editor-in-Chief of the Section’s Indian Law Newsletter. Anthony has been named a Rising Star by Washington Law & Politics-Super Lawyers magazine.

Ryan Dreveskracht is a firm associate. Prior to joining Galanda Broadman he was a law clerk to the Honorable Kathleen Kay, in the U.S. District Court for the Western District of Louisiana. Ryan has published ten journal and law review articles in 2011-12 alone, on issues like tribal renewable energy, and has served as the Managing Editor for the National Lawyer’s Guild Review since 2010.

Brighter Days for Tribal Green Energy

Despite dark and dreary partisan gridlock in Washington, DC, rays of light are emanating from within the Beltway and upon renewable energy projects in Indian Country.

First, the Fiscal Cliff bill extended both the production and investment tax credits for renewable energy projects.  Previously, these tax credits were only available for wind projects that were completed by 2012 and biomass, landfill gas, and waste-to-energy projects completed by the end of 2013.

Thanks to the Fiscal Cliff bill, these credits have both been extended until the end of 2014.  These incentives provide a credit against federal income tax liability for electricity produced by renewable energy projects.  The amount of the credit is based on either (1) the number of kilowatt hours of electricity produced by the taxpayer and sold to an unrelated party in a given year (production tax credits) or (2) the expenditures made before the project is placed in service and for which the taxpayer has made an election to treat the expenditures as progress expenditures (investment tax credits).  Together, these incentives can be leveraged to fund around 30% of a project's costs.

The bill also extends both the Indian employment tax credit and the accelerated depreciation incentive.  Both of these incentives help encourage renewable energy development and energy independence in Indian country by lowering the operating and development costs of these projects.

The accelerated depreciation incentive allows Indian Country energy investors to use shorter recovery periods when calculating depreciation deductions for its production equipment.   “Qualified Indian reservation property” must be used predominately in the active conduct of a trade or business on the Reservation and must be 3-, 5-, 7-, 10-, 15-, or 20-year property or non-residential real property.  “Qualified infrastructure property” that is located off-reservation, but connected to qualified infrastructure within the reservation, is also eligible for shorter recovery periods.

Power lines, water systems and telecommunication facilities are examples of qualified infrastructure property.  Real property rented to others on an Indian reservation is also eligible for an accelerated depreciation schedule.  Because the shorter recovery periods for qualified Indian and infrastructure property are in addition to the normal expense deduction of up to $100,000 for such assets, the depreciation tax savings to non-Indian manufacturers could also be significant.  The bill reauthorizes the provision until 2014.

The Indian Employment Tax Credit provides businesses with an incentive to hire individuals who are enrolled members of an Indian tribe (or the spouse of an enrolled member) and who live on or near an Indian reservation.  A $4,000 tax credit is available to such businesses each tax year, for each “qualified employee” that is paid “qualified wages.”

A qualified employee must: (1) be an enrolled member of an Indian tribe or the spouse of a tribal member; (2) perform substantially all of his or her services for the business on the reservation; and, (3) reside on or near the reservation.  Qualified wages are any wages the business pays or incurs for services performed by a qualified employee, including health insurance costs.  The bill retroactively extended the program to December 31, 2013.

In addition to the Fiscal Cliff bill, the IRS has recently issued a ruling that is highly favorable to Indian energy development partners looking to take advantage of tax credits.  In IRS Ruling No. 201310001 the IRS determined that  “an Indian tribal government is  neither a governmental unit described in § 50(b)(4) nor an organization exempt from tax imposed by Chapter 1 for purposes of § 50” of the Internal Revenue Code.

Although counterintuitive, this is a good thing.  Because IRC § 50(b)(3) provides that no investment credit “shall be determined . . . with respect to any property used by an organization . . . which is exempt from the tax imposed,” entities wishing to invest in tribal energy projects were potentially ineligible for pass-through investment credits.  This ruling, however, means that tribes may now “elect to pass investment credits associated with the Renewable Energy Assets” to non-Indian lessees.  As discussed above, the ability to pass these investment credits onto non-Indian partners can be leveraged to fund a large piece of a project’s startup costs.

In all, the days ahead for tribal green energy development projects just got a bit brighter.

Ryan Dreveskracht is an Associate at Galanda Broadman, PLLC.  His practice focuses on representing businesses and tribal governments in public affairs, energy, gaming, taxation, and general economic development.  His recent publication in the Energy Law Journal, "Alternative Energy in American Indian Country: Catering to Both Sides of the Coin," is available here.   He can be reached at 206.909.3842 or ryan @galandabroadman.com.

Washington Tribal Lawyer Gabe Galanda to Discuss Indian Tax Issues (Twice) at RES 2013

Gabe Galanda has been invited by the National Center for American Indian Enterprise Development (NCAIED) to speak on two Indian taxation panels at RES 2013 in Las Vegas, Nevada, the premier tribal economic development and diversification conference in the country.  He will speak on March 13.

Track 4: TAXATION, Part 1 – IRS Tax Implications on Tribes, Tribal Enterprises and Tribal members. Tribes and intertribal organizations have formed the Intertribal Organization Tax Initiative (IOTI) to carry out united tribal action to confront new forms of intrusion into the sovereign affairs of tribes by federal and state taxation policies. Tribal governments have had to defend against expansive Internal Revenue Service (IRS) examinations and audits of tribal government services to members. Tribal governmental and economic development programs have been hindered by the more burdensome federal tax requirements imposed on tribes than on state governments. Meanwhile, states continue to seek mechanisms to obtain state revenues from tribal commerce. This break-out session, featuring representatives of the IOTI Tax Initiative, will report on key tax policy developments and what to expect in the coming year, including pending IRS guidelines on the General Welfare exclusion and tribal proposals for tax reform legislation as well as other tax policy efforts that have been undertaken to defend tribal sovereignty, strengthen nation-building and stimulate economic development.

Moderator: Susan Masten – Vice-Chairwoman, Yurok Tribe and Vice-Chairwoman Board of Directors, National Center for American Indian Enterprise Development Kitcki Carroll – Executive Director, United South & Eastern Tribes, Inc. F. Michael Willis, Partner, Hobbs Straus Dean & Walker, LLP. Gabriel Galanda – Partner, Galanda Broadman, PLLC Dante Desiderio – Executive Director, Native American Finance Officers Association

Track 4: TAXATION, Part 2 – Tribal Tax Revenue Opportunities for Tribes. Moderator: Larry Kinley CEO, Lummi Commercial Company and Member Board of Directors, National Center for American Indian Enterprise Development Gabriel Galanda – Partner, Galanda Broadman, PLLC Robert Porter – Senior Counsel, SNR Denton Robert Whitener – Owner, The Whitener Group, LLC

Gabriel "Gabe" Galanda is a partner at Galanda Broadman PLLC, of Seattle, an American Indian owned law firm.  He is an enrolled member of the Round Valley Indian Tribes of Covelo, California.  Gabe assists tribal governments and businesses in all matters of tribal sovereignty and self-governance, especially in legal opposition to federal, state and local government encroachment.  Gabe can be reached at 206.691.3631 or gabe@galandabroadman.com.

Galanda Broadman Named Amongst Washington Puget Sound Region's "Best Lawyers in the Business"

Seattle Business Magazine has honored Galanda Broadman, PLLC, in its listing of "the Puget Sound Region's Best Lawyers for 2013," in both the arenas of Gaming Law and Native American Law. The firm was selected as some of the "best lawyers in the business" in the State of Washington by Galanda Broadman's peers, and is the only American Indian-owned law firm to receive these honors. This honor follows several other recent honors for Galanda Broadman and its lawyers. In November 2012, Galanda Broadman received a prestigious Tier 1 ranking in the 2013 Edition of U.S. News - Best Lawyers “Best Law Firms,” in the arena of Native American Law. In addition, firm co-founder Gabe Galanda was then named to The Best Lawyers in America in the practice areas of both Gaming Law and Native American Law, for the seventh straight year. Gabe was named a "Difference Maker" by the American Bar Association in November as well. Also, last month Lawyers of Color listed the firm in its Big Book of the Best Boutiques, an exclusive list of the top minority law firms in each state.

"This honor gives us great pride. We work our very hardest for our tribal clients and to receive recognition from them and from our peers feels awesome," said Gabe in a recent Indian Country Today interview. "We are privileged to be entrusted to represent tribal governments and Indian people, frequently during very critical times. It is the opportunities that our tribal clients have given us, and the results we have been able to obtain for them, and the underlying teamwork with our clients and each other that resulted in this honor. We feel as grateful to our tribal clients for those opportunities as we feel honored by this accolade."

Galanda Broadman, PLLC, “An Indian Country Law Firm,” is dedicated to advancing tribal legal rights and Indian business interests. The firm, which is headquartered in Seattle, Washington and also has offices in Bend, Oregon, represents tribal governments, businesses and members in critical litigation, business and regulatory matters, especially in matters of Indian Treaty rights, tribal sovereignty and taxation.

Gabe is an enrolled member of the Round Valley Indian Tribes of California. He currently sits on the National Native American Bar Association (NNABA) Board of Directors, chairing the group’s “Include Indian Law on State Bar Exams” Initiative, and co-chairing its “Increase Natives and Tribal Court Judges in the Judiciary” Initiative. Gabe is a past President of the Northwest Indian Bar Association and past Chair of the Washington State Bar Association (WSBA) Indian Law Section.

Anthony is the immediate past Chair of the WSBA Administrative Law Section, and author of “Administrative Law in Washington Indian Country.”  In September 2012, Anthony was specially honored for his outstanding service as Chair of the Administrative Law Section.  He is a former Trustee of the WSBA Indian Law Section, and also serves as Editor-in-Chief of the Section’s Indian Law Newsletter. Anthony has been named a Rising Star by Washington Law & Politics-Super Lawyers magazine.

Ryan Dreveskracht is a firm associate. Prior to joining Galanda Broadman he was a law clerk to the Honorable Kathleen Kay, in the U.S. District Court for the Western District of Louisiana. Ryan has published ten journal and law review articles in 2011-12 alone, on issues like tribal renewable energy, and has served as the Managing Editor for the National Lawyer’s Guild Review since 2010.

Fiscal Cliff Bill Affords Indian Country Tax Relief, Suprisingly

As Indianz.com reports, the "fiscal cliff" bill includes several provisions that are designed to stimulate employment and economic opportunities in Indian Country. The Indian Employment Tax Credit, which encourages businesses to hire tribal members and their spouses, expired in December 2011 but is now retroactivated to 2012 and extended until the end of 2013.

The Accelerated Depreciation Incentive, which helps businesses locate on Indian lands, also expired in December 2011 but also received a two-year extension, until the end of 2013.

A production credit for coal facilities that were placed in service in Indian Country before 2009 was also extended until January 2014.

The New Market Tax Credit Program was extended through the end of 2013, with $3.5 billion in tax credits allocated for each year.

At the original request of the U.S. Department of the Interior’s Office of Indian Energy and Economic Development, Gabe Galanda has written a paper that explains the interplay of all of these and other tax advantages in Indian Country, titled, "The Business Case for Private Investment and Development in Indian Country." It is available here.

Gabriel "Gabe" Galanda is a partner at Galanda Broadman PLLC, of Seattle, an American Indian owned law firm.  He is an enrolled member of the Round Valley Indian Tribes of Covelo, California.  Gabe assists tribal governments and businesses in all matters of tribal economic development and diversification, including entity formation and related tax strategy. He also helps tribes and tribal businesses and joint ventures withstand attack from federal, state and local government. Gabe can be reached at 206.691.3631 or gabe@galandabroadman.com.

A Look Back: Internet Gaming and "Indian Lands"

Anthony Broadman's materials from the 10th Annual Northwest Gaming Law Summit held last week in Seattle are available.  With the scrapping this week of the Reid-Kyl Internet poker bill, the outlook for online gaming in general, and tribal online gaming specifically, is as cloudy as ever.  These materials examine the approach taken by the NIGC and courts in the early 2000's when Tribes first began exploring regulated online gaming.  The regulatory scheme now in place as a result of these cases will have to be addressed in any federal legislation regarding Internet gaming.