81_FR_40837 81 FR 40717 - HEARTH Act Approval of Twenty-Nine Palms Band of Mission Indians of California Regulations

81 FR 40717 - HEARTH Act Approval of Twenty-Nine Palms Band of Mission Indians of California Regulations

DEPARTMENT OF THE INTERIOR
Bureau of Indian Affairs

Federal Register Volume 81, Issue 120 (June 22, 2016)

Page Range40717-40718
FR Document2016-14796

On June 14, 2016, the Bureau of Indian Affairs (BIA) approved the Twenty-Nine Palms Band of Mission Indians of California (Tribe) leasing regulations under the Helping Expedite and Advance Responsible Tribal Homeownership Act of 2012 (HEARTH Act). With this approval, the Tribe is authorized to enter into business site leases without BIA approval.

Federal Register, Volume 81 Issue 120 (Wednesday, June 22, 2016) 
[Federal Register Volume 81, Number 120 (Wednesday, June 22, 2016)]
[Notices]
[Pages 40717-40718]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2016-14796]


-----------------------------------------------------------------------

DEPARTMENT OF THE INTERIOR

Bureau of Indian Affairs

[167A2100DD/AAKC001030/A0A501010.999900]


HEARTH Act Approval of Twenty-Nine Palms Band of Mission Indians 
of California Regulations

AGENCY: Bureau of Indian Affairs, Interior.

ACTION: Notice.

-----------------------------------------------------------------------

SUMMARY: On June 14, 2016, the Bureau of Indian Affairs (BIA) approved 
the Twenty-Nine Palms Band of Mission Indians of California (Tribe) 
leasing regulations under the Helping Expedite and Advance Responsible 
Tribal Homeownership Act of 2012 (HEARTH Act). With this approval, the 
Tribe is authorized to enter into business site leases without BIA 
approval.

FOR FURTHER INFORMATION CONTACT: Ms. Sharlene Round Face, Bureau of 
Indian Affairs, Division of Real Estate Services, MS-4642-MIB, 1849 C 
Street NW., Washington, DC 20240, at (202) 208-3615.

SUPPLEMENTARY INFORMATION:

I. Summary of the HEARTH Act

    The HEARTH Act makes a voluntary, alternative land leasing process 
available to Tribes, by amending the Indian Long-Term Leasing Act of 
1955, 25 U.S.C. 415. The HEARTH Act authorizes tribes to negotiate and 
enter into agricultural and business leases of tribal trust lands with 
a primary term of 25 years, and up to two renewal terms of 25 years 
each, without the approval of the Secretary of the Interior 
(Secretary). The HEARTH Act also authorizes tribes to enter into leases 
for residential, recreational, religious, or educational purposes for a 
primary term of up to 75 years without the approval of the Secretary. 
Participating tribes develop tribal leasing regulations, including an 
environmental review process, and then must obtain the Secretary's 
approval of those regulations prior to entering into leases. The HEARTH 
Act requires the Secretary to approve tribal regulations if the tribal 
regulations are consistent with the Department of the Interior's 
(Department) leasing regulations at 25 CFR part 162 and provide for an 
environmental review process that meets requirements set forth in the 
HEARTH Act. This notice announces that the Secretary, through the 
Assistant Secretary--Indian Affairs, has approved the tribal 
regulations for the Twenty-Nine Palms Band of Mission Indians of 
California.

II. Federal Preemption of State and Local Taxes

    The Department regulations governing the surface leasing of trust 
and restricted Indian lands specify that, subject to applicable Federal 
law, permanent improvements on leased land, leasehold or possessory 
interests, and activities under the lease are not subject to state and 
local taxation and may be subject to taxation by the Indian tribe with 
jurisdiction. See 25 CFR 162.017. As explained further in the preamble 
to the final regulations, the Federal Government has a strong interest 
in

[[Page 40718]]

promoting economic development, self-determination, and tribal 
sovereignty. 77 FR 72440, 72447-48 (December 5, 2012). The principles 
supporting the Federal preemption of state law in the field of Indian 
leasing and the taxation of lease-related interests and activities 
applies with equal force to leases entered into under tribal leasing 
regulations approved by the Federal Government pursuant to the HEARTH 
Act.
    Section 5 of the Indian Reorganization Act, 25 U.S.C. 465, preempts 
state and local taxation of permanent improvements on trust land. 
Confederated Tribes of the Chehalis Reservation v. Thurston County, 724 
F.3d 1153, 1157 (9th Cir. 2013) (citing Mescalero Apache Tribe v. 
Jones, 411 U.S. 145 (1973)). Similarly, Section 465 preempts state 
taxation of rent payments by a lessee for leased trust lands, because 
``tax on the payment of rent is indistinguishable from an impermissible 
tax on the land.'' See Seminole Tribe of Florida v. Stranburg, No. 14-
14524, *13-*17, n.8 (11th Cir. 2015). In addition, as explained in the 
preamble to the revised leasing regulations at 25 CFR part 162, Federal 
courts have applied a balancing test to determine whether state and 
local taxation of non-Indians on the reservation is preempted. White 
Mountain Apache Tribe v. Bracker, 448 U.S. 136, 143 (1980). The Bracker 
balancing test, which is conducted against a backdrop of ``traditional 
notions of Indian self-government,'' requires a particularized 
examination of the relevant Federal, state, and tribal interests. We 
hereby adopt the Bracker analysis from the preamble to the surface 
leasing regulations, 77 FR at 72447-48, as supplemented by the analysis 
below.
    The strong Federal and tribal interests against state and local 
taxation of improvements, leaseholds, and activities on land leased 
under the Department's leasing regulations apply equally to 
improvements, leaseholds, and activities on land leased pursuant to 
tribal leasing regulations approved under the HEARTH Act. Congress's 
overarching intent was to ``allow Tribes to exercise greater control 
over their own land, support self-determination, and eliminate 
bureaucratic delays that stand in the way of homeownership and economic 
development in Tribal communities.'' 158 Cong. Rec. H. 2682 (May 15, 
2012). The HEARTH Act was intended to afford tribes ``flexibility to 
adapt lease terms to suit [their] business and cultural needs'' and to 
``enable [Tribes] to approve leases quickly and efficiently.'' Id. at 
5-6.
    Assessment of state and local taxes would obstruct these express 
Federal policies supporting tribal economic development and self-
determination, and also threaten substantial tribal interests in 
effective tribal government, economic self-sufficiency, and territorial 
autonomy. See Michigan v. Bay Mills Indian Community, 134 S. Ct. 2024, 
2043 (2014) (Sotomayor, J., concurring) (determining that ``[a] key 
goal of the Federal Government is to render tribes more self-
sufficient, and better positioned to fund their own sovereign 
functions, rather than relying on Federal funding''). The additional 
costs of State and local taxation have a chilling effect on potential 
lessees, as well as on a tribe that, as a result, might refrain from 
exercising its own sovereign right to impose a tribal tax to support 
its infrastructure needs. See id. at 2043-44 (finding that state and 
local taxes greatly discourage tribes from raising tax revenue from the 
same sources because the imposition of double taxation would impede 
Tribal economic growth).
    Similar to BIA's surface leasing regulations, tribal regulations 
under the HEARTH Act pervasively cover all aspects of leasing. See 25 
U.S.C. 415(h)(3)(B)(i) (requiring tribal regulations be consistent with 
BIA surface leasing regulations). Furthermore, the Federal Government 
remains involved in the tribal land leasing process by approving the 
tribal leasing regulations in the first instance and providing 
technical assistance, upon request by a tribe, for the development of 
an environmental review process. The Secretary also retains authority 
to take any necessary actions to remedy violations of a lease or of the 
tribal regulations, including terminating the lease or rescinding 
approval of the tribal regulations and reassuming lease approval 
responsibilities. Moreover, the Secretary continues to review, approve, 
and monitor individual Indian land leases and other types of leases not 
covered under the tribal regulations according to part 162 of the 
regulations.
    Accordingly, the Federal and tribal interests weigh heavily in 
favor of preemption of state and local taxes on lease-related 
activities and interests, regardless of whether the lease is governed 
by tribal leasing regulations at part 162. Improvements, activities, 
and leasehold or possessory interests may be subject to taxation by the 
Twenty-Nine Palms Band of Mission Indians of California.

    Dated: June 14, 2016.
Lawrence S. Roberts,
Acting Assistant Secretary--Indian Affairs.
[FR Doc. 2016-14796 Filed 6-21-16; 8:45 am]
 BILLING CODE 4337-15-P

Federal Register / Vol. 81, No. 120 / Wednesday, June 22, 2016 / Notices 40717 and explain the basis for your III. Permit Applications Indians of California (Tribe) leasing comments. Include sufficient regulations under the Helping Expedite Endangered Species information with your comments to and Advance Responsible Tribal allow us to authenticate any scientific or Applicant: Fort Worth Zoo, Fort Worth, Homeownership Act of 2012 (HEARTH commercial data you include. TX; PRT–93340B Act). With this approval, the Tribe is The applicant requests a permit to authorized to enter into business site The comments and recommendations import one female and one male leases without BIA approval. that will be most useful and likely to Sumatran orangutan (Pongo pygmaeus) FOR FURTHER INFORMATION CONTACT: Ms. influence agency decisions are: (1) for the purpose of enhancement of the Sharlene Round Face, Bureau of Indian Those supported by quantitative survival of the species. This notification Affairs, Division of Real Estate Services, information or studies; and (2) Those covers activities to be conducted by the MS–4642–MIB, 1849 C Street NW., that include citations to, and analyses applicant over a 1-year period. Washington, DC 20240, at (202) 208– of, the applicable laws and regulations. 3615. We will not consider or include in our Applicant: Saint Louis Zoo, St. Louis, administrative record comments we MO; PRT–79205B SUPPLEMENTARY INFORMATION: receive after the close of the comment The applicant requests a permit to I. Summary of the HEARTH Act period (see DATES) or comments export one male and one female North The HEARTH Act makes a voluntary, delivered to an address other than those Sulawesi babirusa (Babyrousa alternative land leasing process listed above (see ADDRESSES). celebensis) for the purpose of available to Tribes, by amending the B. May I review comments submitted by enhancement of the survival of the Indian Long-Term Leasing Act of 1955, species. This notification covers 25 U.S.C. 415. The HEARTH Act others? activities to be conducted by the authorizes tribes to negotiate and enter Comments, including names and applicant over a 1-year period. into agricultural and business leases of street addresses of respondents, will be Applicant: Xochitl De La Rosa Reyna, tribal trust lands with a primary term of available for public review at the street College Station, TX; PRT–87845B 25 years, and up to two renewal terms address listed under ADDRESSES. The of 25 years each, without the approval The applicant requests a permit to public may review documents and other of the Secretary of the Interior import biological samples from wild information applicants have sent in (Secretary). The HEARTH Act also olive Ridley sea turtle (Lepidochelys support of the application unless our authorizes tribes to enter into leases for olivacea) for the purpose of scientific allowing viewing would violate the residential, recreational, religious, or research. This notification covers Privacy Act or Freedom of Information educational purposes for a primary term activities to be conducted by the Act. Before including your address, of up to 75 years without the approval applicant over a 5-year period. phone number, email address, or other of the Secretary. Participating tribes personal identifying information in your Applicant: Kevin Petersen, Hyrum, UT; develop tribal leasing regulations, comment, you should be aware that PRT–98525B including an environmental review The applicant requests a permit to process, and then must obtain the your entire comment—including your import a sport-hunted trophy of one Secretary’s approval of those regulations personal identifying information—may male bontebok (Damaliscus pygargus prior to entering into leases. The be made publicly available at any time. HEARTH Act requires the Secretary to While you can ask us in your comment pygargus) culled from a captive herd maintained under the management approve tribal regulations if the tribal to withhold your personal identifying regulations are consistent with the information from public review, we program of the Republic of South Africa, for the purpose of enhancement of the Department of the Interior’s cannot guarantee that we will be able to (Department) leasing regulations at 25 do so. survival of the species. CFR part 162 and provide for an Brenda Tapia, environmental review process that II. Background Program Analyst/Data Administrator, Branch meets requirements set forth in the To help us carry out our conservation of Permits, Division of Management HEARTH Act. This notice announces Authority. that the Secretary, through the Assistant responsibilities for affected species, and in consideration of section 10(a)(1)(A) of [FR Doc. 2016–14741 Filed 6–21–16; 8:45 am] Secretary—Indian Affairs, has approved the Endangered Species Act of 1973, as BILLING CODE 4333–15–P the tribal regulations for the Twenty- amended (16 U.S.C. 1531 et seq.), along Nine Palms Band of Mission Indians of with Executive Order 13576, California. DEPARTMENT OF THE INTERIOR ‘‘Delivering an Efficient, Effective, and II. Federal Preemption of State and Accountable Government,’’ and the Bureau of Indian Affairs Local Taxes President’s Memorandum for the Heads [167A2100DD/AAKC001030/ The Department regulations governing of Executive Departments and Agencies A0A501010.999900] the surface leasing of trust and restricted of January 21, 2009—Transparency and Indian lands specify that, subject to Open Government (74 FR 4685; January HEARTH Act Approval of Twenty-Nine applicable Federal law, permanent 26, 2009), which call on all Federal Palms Band of Mission Indians of improvements on leased land, leasehold agencies to promote openness and California Regulations or possessory interests, and activities mstockstill on DSK3G9T082PROD with NOTICES transparency in Government by under the lease are not subject to state AGENCY: Bureau of Indian Affairs, disclosing information to the public, we Interior. and local taxation and may be subject to invite public comment on these permit taxation by the Indian tribe with ACTION: Notice. applications before final action is taken. jurisdiction. See 25 CFR 162.017. As SUMMARY: On June 14, 2016, the Bureau explained further in the preamble to the of Indian Affairs (BIA) approved the final regulations, the Federal Twenty-Nine Palms Band of Mission Government has a strong interest in VerDate Sep<11>2014 20:02 Jun 21, 2016 Jkt 238001 PO 00000 Frm 00065 Fmt 4703 Sfmt 4703 E:\FR\FM\22JNN1.SGM 22JNN1

40718 Federal Register / Vol. 81, No. 120 / Wednesday, June 22, 2016 / Notices promoting economic development, self- Assessment of state and local taxes Dated: June 14, 2016. determination, and tribal sovereignty. would obstruct these express Federal Lawrence S. Roberts, 77 FR 72440, 72447–48 (December 5, policies supporting tribal economic Acting Assistant Secretary—Indian Affairs. 2012). The principles supporting the development and self-determination, [FR Doc. 2016–14796 Filed 6–21–16; 8:45 am] Federal preemption of state law in the and also threaten substantial tribal BILLING CODE 4337–15–P field of Indian leasing and the taxation interests in effective tribal government, of lease-related interests and activities economic self-sufficiency, and territorial applies with equal force to leases autonomy. See Michigan v. Bay Mills DEPARTMENT OF THE INTERIOR entered into under tribal leasing Indian Community, 134 S. Ct. 2024, regulations approved by the Federal Bureau of Indian Affairs 2043 (2014) (Sotomayor, J., concurring) Government pursuant to the HEARTH (determining that ‘‘[a] key goal of the [167A2100DD/AAKC001030/ Act. Federal Government is to render tribes A0A501010.999900] Section 5 of the Indian Reorganization more self-sufficient, and better Act, 25 U.S.C. 465, preempts state and HEARTH Act Approval of Oneida positioned to fund their own sovereign Nation of New York Regulations local taxation of permanent functions, rather than relying on Federal improvements on trust land. AGENCY: Bureau of Indian Affairs, funding’’). The additional costs of State Confederated Tribes of the Chehalis Interior. and local taxation have a chilling effect Reservation v. Thurston County, 724 on potential lessees, as well as on a tribe ACTION: Notice. F.3d 1153, 1157 (9th Cir. 2013) (citing Mescalero Apache Tribe v. Jones, 411 that, as a result, might refrain from SUMMARY: On June 14, 2016, the Bureau U.S. 145 (1973)). Similarly, Section 465 exercising its own sovereign right to of Indian Affairs (BIA) approved the preempts state taxation of rent payments impose a tribal tax to support its Oneida Nation of New York (Tribe) by a lessee for leased trust lands, infrastructure needs. See id. at 2043–44 leasing regulations under the HEARTH because ‘‘tax on the payment of rent is (finding that state and local taxes greatly Act. With this approval, the Tribe is indistinguishable from an impermissible discourage tribes from raising tax authorized to enter into residential tax on the land.’’ See Seminole Tribe of revenue from the same sources because leases without BIA approval. Florida v. Stranburg, No. 14–14524, the imposition of double taxation would FOR FURTHER INFORMATION CONTACT: Ms. *13–*17, n.8 (11th Cir. 2015). In impede Tribal economic growth). Sharlene Round Face, Bureau of Indian addition, as explained in the preamble Similar to BIA’s surface leasing Affairs, Division of Real Estate Services, to the revised leasing regulations at 25 regulations, tribal regulations under the MS–4642–MIB, 1849 C Street NW., CFR part 162, Federal courts have HEARTH Act pervasively cover all Washington, DC 20240, telephone: (202) applied a balancing test to determine aspects of leasing. See 25 U.S.C. 208–3615. whether state and local taxation of non- 415(h)(3)(B)(i) (requiring tribal SUPPLEMENTARY INFORMATION: Indians on the reservation is preempted. regulations be consistent with BIA I. Summary of the HEARTH Act White Mountain Apache Tribe v. surface leasing regulations). Bracker, 448 U.S. 136, 143 (1980). The The HEARTH (Helping Expedite and Furthermore, the Federal Government Bracker balancing test, which is Advance Responsible Tribal conducted against a backdrop of remains involved in the tribal land Homeownership) Act of 2012 (Act) ‘‘traditional notions of Indian self- leasing process by approving the tribal makes a voluntary, alternative land government,’’ requires a particularized leasing regulations in the first instance leasing process available to tribes, by examination of the relevant Federal, and providing technical assistance, amending the Indian Long-Term Leasing state, and tribal interests. We hereby upon request by a tribe, for the Act of 1955, 25 U.S.C. 415. The Act adopt the Bracker analysis from the development of an environmental authorizes tribes to negotiate and enter preamble to the surface leasing review process. The Secretary also into agricultural and business leases of regulations, 77 FR at 72447–48, as retains authority to take any necessary tribal trust lands with a primary term of supplemented by the analysis below. actions to remedy violations of a lease 25 years, and up to two renewal terms The strong Federal and tribal interests or of the tribal regulations, including of 25 years each, without the approval against state and local taxation of terminating the lease or rescinding of the Secretary of the Interior (the improvements, leaseholds, and approval of the tribal regulations and Secretary). The Act also authorizes activities on land leased under the reassuming lease approval tribes to enter into leases for residential, Department’s leasing regulations apply responsibilities. Moreover, the Secretary recreational, religious, or educational equally to improvements, leaseholds, continues to review, approve, and purposes for a primary term of up to 75 and activities on land leased pursuant to monitor individual Indian land leases years without the approval of the tribal leasing regulations approved and other types of leases not covered Secretary. Participating tribes develop under the HEARTH Act. Congress’s under the tribal regulations according to tribal leasing regulations, including an overarching intent was to ‘‘allow Tribes part 162 of the regulations. environmental review process, and then to exercise greater control over their must obtain the Secretary’s approval of Accordingly, the Federal and tribal own land, support self-determination, those regulations prior to entering into and eliminate bureaucratic delays that interests weigh heavily in favor of leases. The Act requires the Secretary to stand in the way of homeownership and preemption of state and local taxes on approve tribal regulations if the tribal economic development in Tribal lease-related activities and interests, regulations are consistent with the mstockstill on DSK3G9T082PROD with NOTICES communities.’’ 158 Cong. Rec. H. 2682 regardless of whether the lease is Department of the Interior’s (May 15, 2012). The HEARTH Act was governed by tribal leasing regulations at (Department) leasing regulations at 25 intended to afford tribes ‘‘flexibility to part 162. Improvements, activities, and CFR part 162 and provide for an adapt lease terms to suit [their] business leasehold or possessory interests may be environmental review process that and cultural needs’’ and to ‘‘enable subject to taxation by the Twenty-Nine meets requirements set forth in the Act. [Tribes] to approve leases quickly and Palms Band of Mission Indians of This notice announces that the efficiently.’’ Id. at 5–6. California. Secretary, through the Assistant VerDate Sep<11>2014 20:02 Jun 21, 2016 Jkt 238001 PO 00000 Frm 00066 Fmt 4703 Sfmt 4703 E:\FR\FM\22JNN1.SGM 22JNN1


Document Created: 2016-06-22 01:05:27
Document Modified: 2016-06-22 01:05:27
CategoryRegulatory Information
CollectionFederal Register
sudoc ClassAE 2.7:
GS 4.107:
AE 2.106:
PublisherOffice of the Federal Register, National Archives and Records Administration
SectionNotices
ActionNotice.
ContactMs. Sharlene Round Face, Bureau of Indian Affairs, Division of Real Estate Services, MS-4642-MIB, 1849 C Street NW., Washington, DC 20240, at (202) 208-3615.
FR Citation81 FR 40717 
2025 Federal Register | Disclaimer | Privacy Policy
USC | CFR | eCFR