Lac Courte Oreilles Band of Lake Superior Chippewa Indians v. United States

367 F.3d 650
CourtCourt of Appeals for the Seventh Circuit
DecidedApril 29, 2004
Docket03-2323
StatusPublished
Cited by7 cases

This text of 367 F.3d 650 (Lac Courte Oreilles Band of Lake Superior Chippewa Indians v. United States) is published on Counsel Stack Legal Research, covering Court of Appeals for the Seventh Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Lac Courte Oreilles Band of Lake Superior Chippewa Indians v. United States, 367 F.3d 650 (7th Cir. 2004).

Opinion

FLAUM, Chief Judge.

The Plaintiff Tribes appeal the district court’s opinion and order declaring the gubernatorial concurrence provision of the Indian Gaming Regulatory Act (“IGRA”) constitutional and not in violation of the federal government’s trust obligation to Indians. For the reasons set forth in the following opinion, we affirm the judgment of the district court.

*653 I. Background

Plaintiffs are three federally-recognized Indian Tribes with reservations in sparsely populated areas of northern Wisconsin (“the Tribes”). While each of the Tribes operates a casino on reservation land, these casinos do not generate income comparable to casinos operated by tribes who have reservations near Wisconsin’s urban centers or destination resorts. Seeking to advance their tribal and economic development, the Tribes joined together for the purpose of establishing a jointly owned and operated off-reservation gaming facility in a lucrative location.

The Tribes found a struggling pari-mu-tuel greyhound racing facility in Hudson, Wisconsin that they wished to acquire and convert into a casino gaming facility. Hudson was attractive to the Tribes because they believed its proximity to the metropolitan areas of Minneapolis and St. Paul and easy accessibility to Interstate Highway 94 would ensure a broad customer base. In October 1992 the Tribes formally submitted their application under the Indian Gaming Regulatory Act (“IGRA”) 25 U.S.C. §§ 2701 et seq. to the Department of the Interior seeking to have the Hudson property taken into trust for their benefit for the purpose of operating a casino gaming facility.

The Secretary of the Interior has broad discretion to acquire lands in trust for the benefit of Indian tribes pursuant to Indian Reorganization Act of 1934, 25 U.S.C. § 465. However, this authority is limited by IGRA, which prohibits certain types of gaming on lands acquired in trust by the Secretary of the Interior after October 17, 1988 (“after-acquired lands”). 25 U.S.C. § 2719(a). The Tribes hoped that their application would be favorably received pursuant to 25 U.S.C. § 2719(b)(1)(A), an exception to IGRA’s general ban on gaming on after-acquired lands. That exception provides that the general prohibition on gaming shall not apply where:

the Secretary, after consultation with the Indian tribe and appropriate State and local officials, including officials of other nearby Indian tribes, determines that a gaming establishment on newly acquired lands would be in the best interest of the Indian tribe and its members, and would not be detrimental to the surrounding community, but only if the Governor of the State in which the gaming activity is to be conducted concurs in the Secretary’s determination.

25 U.S.C. § 2719(b)(1)(A).

The Department of the Interior initially denied the Tribes’ application, but later vacated the rejection following a lawsuit and settlement. In February 2001, the Department of the Interior issued findings that the proposal was in the best interests of the Tribes and would not be detrimental to the surrounding community. The Department of the Interior sent the matter to then Governor of Wisconsin Scott McCal-lum for his concurrence. In May 2001, Governor McCallum issued a letter declining to concur in the Secretary’s findings, citing Wisconsin’s general disapproval of off-reservation gaming and public policy of permitting only “limited exceptions to the general prohibition against gambling.” Governor McCallum opined that the public interest would not be served by the addition of another major casino gaming facility to the seventeen casino gaming facilities already operating in Wisconsin. In June 2001, the Department of the Interior issued a final decision denying the Tribes’ application on the grounds that, absent the Governor’s concurrence, the exception provided in 25 U.S.C. § 2719(b)(1)(A) did not apply and 25 U.S.C. § 2719(a) precluded the acquisition of the land for the purposes of gaming.

*654 The Tribes initiated this litigation in the United States District Court for the District of Columbia in May 2001 seeking a declaration that the gubernatorial concurrence provision of § 2719(b)(1)(A) was unconstitutional. The State of Wisconsin and Governor McCallum moved to intervene in July 2001. The Tribes moved for judgment on the pleadings in December 2001. The case was eventually transferred to the United States District Court for the Western District of Wisconsin in October 2002. The Tribes renewed their motion for judgment on the pleadings in November 2002, and both defendants filed cross-motions for judgment on the pleadings. 1 The Tribes filed an opposition to the defendants’ motions in addition to a “conditional motion” to file a second amended complaint. The conditional motion requested that the Tribes be permitted to add a claim that Governor McCallum had relied on improper factors in refusing to concur, in the event that the court upheld the constitutionality of the gubernatorial concurrence provision of § 2719(b)(1)(A).

In April 2003, the district court granted the defendants’ motions for judgment on the pleadings, finding that the gubernatorial concurrence provision is not an unconstitutional delegation of power, nor does it violate the separation of powers doctrine, the Appointments Clause, Art. II, § 2, or the Tenth Amendment. Further, the district court found that the Tribes’ claim that the gubernatorial concurrence requirement represented a breach of trust was barred by sovereign immunity and was without support in law. Finally, the district court denied the Tribes’ conditional motion to amend, stating that it was untimely and futile. The district court subsequently denied the Tribes’ Rule 59 motion to vacate the judgment and the Tribes now appeal. We uphold the judgment of the district court because we conclude that § 2719(b)(1)(A) does not violate separation of powers principles, the nondelegation doctrine, the Appointments Clause, principles of federalism, or the federal government’s trust obligations to Indians.

II. Analysis

The Tribes challenge the constitutionality of the gubernatorial concurrence provision of the Indian Gaming Regulations Act (“IGRA”), 25 U.S.C. § 2719(b)(1)(A) on multiple grounds. The constitutionality of a federal statute is an issue of law subject to de novo review. United States v. Hausmann, 345 F.3d 952, 958 (7th Cir.2003). When “it is fairly possible[,]” this Court is “to interpret the statute in a manner that renders it constitutionally valid.” Communications Workers of Am. v.

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367 F.3d 650, Counsel Stack Legal Research, https://law.counselstack.com/opinion/lac-courte-oreilles-band-of-lake-superior-chippewa-indians-v-united-states-ca7-2004.