83_FR_31692 83 FR 31562 - HEARTH Act Approval of San Manuel Band of Mission Indians, California Business Site Leasing Code

83 FR 31562 - HEARTH Act Approval of San Manuel Band of Mission Indians, California Business Site Leasing Code

DEPARTMENT OF THE INTERIOR
Bureau of Indian Affairs

Federal Register Volume 83, Issue 130 (July 6, 2018)

Page Range31562-31563
FR Document2018-14520

On June 11, 2018, the Bureau of Indian Affairs (BIA) approved the San Manuel Band of Mission Indians, California, leasing regulations under the HEARTH Act. With this approval, the Band is authorized to enter into business leases without BIA approval.

Federal Register, Volume 83 Issue 130 (Friday, July 6, 2018)
[Federal Register Volume 83, Number 130 (Friday, July 6, 2018)]
[Notices]
[Pages 31562-31563]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2018-14520]


=======================================================================
-----------------------------------------------------------------------

DEPARTMENT OF THE INTERIOR

Bureau of Indian Affairs

[189A2100DD/AAKC001030/A0A501010.999900]


HEARTH Act Approval of San Manuel Band of Mission Indians, 
California Business Site Leasing Code

AGENCY: Bureau of Indian Affairs, Interior.

ACTION: Notice.

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

SUMMARY: On June 11, 2018, the Bureau of Indian Affairs (BIA) approved 
the San Manuel Band of Mission Indians, California, leasing regulations 
under the HEARTH Act. With this approval, the Band is authorized to 
enter into business leases without BIA approval.

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

SUPPLEMENTARY INFORMATION: 

I. Summary of the HEARTH Act

    The HEARTH (Helping Expedite and Advance Responsible Tribal 
Homeownership) Act of 2012 (the 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 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. The 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 Act 
requires the Secretary to approve Tribal regulations if the Tribal 
regulations are consistent with the Department's leasing regulations at 
25 CFR part 162 and provide for an

[[Page 31563]]

environmental review process that meets requirements set forth in the 
Act. This notice announces that the Secretary, through the Assistant 
Secretary--Indian Affairs, has approved the Tribal regulations for the 
San Manuel Band of Mission Indians, California.

II. Federal Preemption of State and Local Taxes

    The Department's 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 promoting economic development, self-determination, and Tribal 
sovereignty. 77 FR 72,440, 72,447-48 (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. 5108, 
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 5108 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 State, Federal, and Tribal 
interests. We hereby adopt the Bracker analysis from the preamble to 
the surface leasing regulations, 77 FR at 72,447-48, 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 the part 162 
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 or part 162. Improvements, activities, 
and leasehold or possessory interests may be subject to taxation by the 
San Manuel Band of Mission Indians, California.

    Dated: June 11, 2018.
John Tahsuda,
Principal Deputy Assistant Secretary--Indian Affairs, Exercising the 
Authority of the Assistant Secretary--Indian Affairs.
[FR Doc. 2018-14520 Filed 7-5-18; 8:45 am]
 BILLING CODE 4337-15-P



                                               31562                             Federal Register / Vol. 83, No. 130 / Friday, July 6, 2018 / Notices

                                               involves surveying travelers to measure                  surveys are administered using an                     burden is 800 hours (9,600 responses ×
                                               customer satisfaction with their aviation                intercept methodology. The intercept                  0.083 hours).
                                               security screening experience in an                      methodology uses TSA personnel who                       Dated: June 28, 2018.
                                               effort to manage TSA’s performance at                    are not in uniform to hand deliver                    Christina A. Walsh,
                                               the airport more efficiently.                            business card style forms to passengers
                                                                                                                                                              TSA Paperwork Reduction Act Officer, Office
                                               DATES: Send your comments by                             immediately following the passenger’s                 of Information Technology.
                                               September 4, 2018.                                       experience with TSA’s checkpoint
                                                                                                                                                              [FR Doc. 2018–14480 Filed 7–5–18; 8:45 am]
                                               ADDRESSES: Comments may be emailed                       security functions. Passengers are
                                                                                                                                                              BILLING CODE 9110–05–P
                                               to TSAPRA@tsa.dhs.gov or delivered to                    invited, though not required, to
                                               the TSA PRA Officer, Office of                           complete and return the survey using
                                               Information Technology (OIT), TSA–11,                    either an online portal or by responding
                                                                                                        in writing to the survey questions on the             DEPARTMENT OF THE INTERIOR
                                               Transportation Security Administration,
                                               601 South 12th Street, Arlington, VA                     customer satisfaction card and
                                                                                                                                                              Bureau of Indian Affairs
                                               20598–6011.                                              depositing the card in a drop-box at the
                                                                                                        airport or using U.S. mail. Prior to each             [189A2100DD/AAKC001030/
                                               FOR FURTHER INFORMATION CONTACT:                                                                               A0A501010.999900]
                                                                                                        survey collection at an airport, TSA
                                               Christina A. Walsh at the above address,
                                                                                                        personnel select the method by which
                                               or by telephone (571) 227–2062.                                                                                HEARTH Act Approval of San Manuel
                                                                                                        all passengers surveyed on that
                                               SUPPLEMENTARY INFORMATION:                               particular occasion will be asked to                  Band of Mission Indians, California
                                                                                                        complete and return the survey. TSA                   Business Site Leasing Code
                                               Comments Invited
                                                                                                        uses the intercept methodology to                     AGENCY:   Bureau of Indian Affairs,
                                                  In accordance with the Paperwork
                                                                                                        randomly select passengers to complete                Interior.
                                               Reduction Act of 1995 (44 U.S.C. 3501
                                                                                                        the survey in an effort to gain survey                ACTION: Notice.
                                               et seq.), an agency may not conduct or
                                                                                                        data representative of all passenger
                                               sponsor, and a person is not required to                                                                       SUMMARY:   On June 11, 2018, the Bureau
                                                                                                        demographics—including passengers
                                               respond to, a collection of information                                                                        of Indian Affairs (BIA) approved the San
                                                                                                        who—
                                               unless it displays a valid OMB control
                                                                                                           • Travel on weekdays or weekends;                  Manuel Band of Mission Indians,
                                               number. The ICR documentation will be
                                               available at http://www.reginfo.gov                         • Travel in the morning, mid-day, or               California, leasing regulations under the
                                                                                                        evening;                                              HEARTH Act. With this approval, the
                                               upon its submission to OMB. Therefore,
                                               in preparation for OMB review and                           • Pass through each of the different               Band is authorized to enter into
                                                                                                        security screening locations in the                   business leases without BIA approval.
                                               approval of the following information
                                                                                                        airport;                                              FOR FURTHER INFORMATION CONTACT:
                                               collection, TSA is soliciting comments
                                               to—                                                         • Are subject to more intensive                    Sharlene Round Face, Bureau of Indian
                                                  (1) Evaluate whether the proposed                     screening of their baggage or person;                 Affairs, Division of Real Estate Services,
                                               information requirement is necessary for                 and                                                   1849 C Street, NW, MS–4642–MIB,
                                               the proper performance of the functions                     • Experience different volume                      Washington, DC 20240, at (202) 208–
                                               of the agency, including whether the                     conditions and wait times as they                     3615.
                                               information will have practical utility;                 proceed through the security                          SUPPLEMENTARY INFORMATION:
                                                  (2) Evaluate the accuracy of the                      checkpoints.
                                                                                                           Each survey includes 10 to 15                      I. Summary of the HEARTH Act
                                               agency’s estimate of the burden;
                                                  (3) Enhance the quality, utility, and                 questions, and each question promotes                    The HEARTH (Helping Expedite and
                                               clarity of the information to be                         a quality response so that TSA can                    Advance Responsible Tribal
                                               collected; and                                           identify areas in need of improvement.                Homeownership) Act of 2012 (the Act)
                                                  (4) Minimize the burden of the                        All questions concern aspects of the                  makes a voluntary, alternative land
                                               collection of information on those who                   passenger’s security screening                        leasing process available to Tribes, by
                                               are to respond, including using                          experience.                                           amending the Indian Long-Term Leasing
                                               appropriate automated, electronic,                          TSA collects this information in order             Act of 1955, 25 U.S.C. 415. The Act
                                               mechanical, or other technological                       to continue to assess customer                        authorizes Tribes to negotiate and enter
                                               collection techniques or other forms of                  satisfaction in an effort to manage TSA               into agricultural and business leases of
                                               information technology.                                  employee performance more efficiently.                Tribal trust lands with a primary term
                                                  Consistent with the requirements of                   OMB has previously approved a total of                of 25 years, and up to two renewal terms
                                               Executive Order (E.O.) 13771, Reducing                   82 questions from which the 10 to 15                  of 25 years each, without the approval
                                               Regulation and Controlling Regulatory                    questions are selected. TSA is                        of the Secretary of the Interior. The Act
                                               Costs, and E.O. 13777, Enforcing the                     requesting an extension of the approval               also authorizes Tribes to enter into
                                               Regulatory Reform Agenda, TSA is also                    for the information collection.                       leases for residential, recreational,
                                               requesting comments on the extent to                        TSA personnel have the capability to               religious or educational purposes for a
                                               which this request for information could                 conduct this survey at 25 airports each               primary term of up to 75 years without
                                               be modified to reduce the burden on                      year. Based on prior survey data and                  the approval of the Secretary.
                                               respondents.                                             research, TSA estimates 384 responses                 Participating Tribes develop Tribal
                                                                                                        from the passengers at each airport. The              leasing regulations, including an
                                               Information Collection Requirement                       average number of respondents is                      environmental review process, and then
daltland on DSKBBV9HB2PROD with NOTICES




                                                 OMB Control Number 1652–0013;                          estimated to be 9,600 per year (384                   must obtain the Secretary’s approval of
                                               Aviation Security Customer Satisfaction                  passengers × 25 airports). TSA estimates              those regulations prior to entering into
                                               Performance Measurement Passenger                        that the time it takes to complete the                leases. The Act requires the Secretary to
                                               Survey. TSA, with OMB’s approval, has                    survey either online or by writing on the             approve Tribal regulations if the Tribal
                                               conducted surveys of passengers at                       form ranges from 3 to 7 minutes, with                 regulations are consistent with the
                                               airports nationwide and now seeks                        an average of 5 minutes (0.083 hours)                 Department’s leasing regulations at 25
                                               approval to continue this effort. The                    per respondent. Therefore, the annual                 CFR part 162 and provide for an


                                          VerDate Sep<11>2014   18:25 Jul 05, 2018   Jkt 244001   PO 00000   Frm 00037   Fmt 4703   Sfmt 4703   E:\FR\FM\06JYN1.SGM   06JYN1


                                                                                 Federal Register / Vol. 83, No. 130 / Friday, July 6, 2018 / Notices                                                 31563

                                               environmental review process that                        72,447–48, as supplemented by the                     or of the Tribal regulations, including
                                               meets requirements set forth in the Act.                 analysis below.                                       terminating the lease or rescinding
                                               This notice announces that the                              The strong Federal and Tribal                      approval of the Tribal regulations and
                                               Secretary, through the Assistant                         interests against State and local taxation            reassuming lease approval
                                               Secretary—Indian Affairs, has approved                   of improvements, leaseholds, and                      responsibilities. Moreover, the Secretary
                                               the Tribal regulations for the San                       activities on land leased under the                   continues to review, approve, and
                                               Manuel Band of Mission Indians,                          Department’s leasing regulations apply                monitor individual Indian land leases
                                               California.                                              equally to improvements, leaseholds,                  and other types of leases not covered
                                                                                                        and activities on land leased pursuant to             under the Tribal regulations according
                                               II. Federal Preemption of State and                      tribal leasing regulations approved
                                               Local Taxes                                                                                                    to the part 162 regulations.
                                                                                                        under the HEARTH Act. Congress’s                        Accordingly, the Federal and Tribal
                                                  The Department’s regulations                          overarching intent was to ‘‘allow tribes              interests weigh heavily in favor of
                                               governing the surface leasing of trust                   to exercise greater control over their                preemption of State and local taxes on
                                               and restricted Indian lands specify that,                own land, support self-determination,                 lease-related activities and interests,
                                               subject to applicable Federal law,                       and eliminate bureaucratic delays that                regardless of whether the lease is
                                               permanent improvements on leased                         stand in the way of homeownership and                 governed by Tribal leasing regulations
                                               land, leasehold or possessory interests,                 economic development in tribal                        or part 162. Improvements, activities,
                                               and activities under the lease are not                   communities.’’ 158 Cong. Rec. H. 2682                 and leasehold or possessory interests
                                               subject to State and local taxation and                  (May 15, 2012). The HEARTH Act was                    may be subject to taxation by the San
                                               may be subject to taxation by the Indian                 intended to afford Tribes ‘‘flexibility to            Manuel Band of Mission Indians,
                                               Tribe with jurisdiction. See 25 CFR                      adapt lease terms to suit [their] business            California.
                                               162.017. As explained further in the                     and cultural needs’’ and to ‘‘enable
                                               preamble to the final regulations, the                                                                           Dated: June 11, 2018.
                                                                                                        [Tribes] to approve leases quickly and
                                               Federal government has a strong interest                 efficiently.’’ Id. at 5–6.                            John Tahsuda,
                                               in promoting economic development,                          Assessment of State and local taxes                Principal Deputy Assistant Secretary—Indian
                                               self-determination, and Tribal                           would obstruct these express Federal                  Affairs, Exercising the Authority of the
                                               sovereignty. 77 FR 72,440, 72,447–48                     policies supporting Tribal economic                   Assistant Secretary—Indian Affairs.
                                               (December 5, 2012). The principles                       development and self-determination,                   [FR Doc. 2018–14520 Filed 7–5–18; 8:45 am]
                                               supporting the Federal preemption of                     and also threaten substantial Tribal                  BILLING CODE 4337–15–P
                                               State law in the field of Indian leasing                 interests in effective Tribal government,
                                               and the taxation of lease-related                        economic self-sufficiency, and territorial
                                               interests and activities applies with                    autonomy. See Michigan v. Bay Mills                   DEPARTMENT OF THE INTERIOR
                                               equal force to leases entered into under                 Indian Community, 134 S. Ct. 2024,
                                               Tribal leasing regulations approved by                   2043 (2014) (Sotomayor, J., concurring)               Bureau of Indian Affairs
                                               the Federal government pursuant to the                   (determining that ‘‘[a] key goal of the               [189A2100DD/AAKC001030/
                                               HEARTH 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. 5108, preempts State and                  positioned to fund their own sovereign                HEARTH Act Approval of the
                                               local taxation of permanent                              functions, rather than relying on Federal             Confederated Tribes of the Warm
                                               improvements on trust land.                              funding’’). The additional costs of State             Springs Reservation of Oregon’s Tribal
                                               Confederated Tribes of the Chehalis                      and local taxation have a chilling effect             Code
                                               Reservation v. Thurston County, 724                      on potential lessees, as well as on a                 AGENCY:   Bureau of Indian Affairs,
                                               F.3d 1153, 1157 (9th Cir. 2013) (citing                  Tribe that, as a result, might refrain from           Interior.
                                               Mescalero Apache Tribe v. Jones, 411                     exercising its own sovereign right to
                                                                                                                                                              ACTION: Notice.
                                               U.S. 145 (1973)). Similarly, Section                     impose a Tribal tax to support its
                                               5108 preempts State taxation of rent                     infrastructure needs. See id. at 2043–44              SUMMARY:   On June 11, 2018, the Bureau
                                               payments by a lessee for leased trust                    (finding that State and local taxes                   of Indian Affairs (BIA) approved the
                                               lands, because ‘‘tax on the payment of                   greatly discourage Tribes from raising                Confederated Tribes of the Warm
                                               rent is indistinguishable from an                        tax revenue from the same sources                     Springs Reservation of Oregon (Tribe)
                                               impermissible tax on the land.’’ See                     because the imposition of double                      leasing regulations under the Helping
                                               Seminole Tribe of Florida v. Stranburg,                  taxation would impede Tribal economic                 Expedite and Advance Responsible
                                               No. 14–14524, *13–*17, n.8 (11th Cir.                    growth).                                              Tribal Homeownership Act of 2012
                                               2015). In addition, as explained in the                     Similar to BIA’s surface leasing                   (HEARTH Act). With this approval, the
                                               preamble to the revised leasing                          regulations, Tribal regulations under the             Tribe is authorized to enter into
                                               regulations at 25 CFR part 162, Federal                  HEARTH Act pervasively cover all                      business leases without further BIA
                                               courts have applied a balancing test to                  aspects of leasing. See 25 U.S.C.                     approval.
                                               determine whether State and local                        415(h)(3)(B)(i) (requiring Tribal
                                               taxation of non-Indians on the                           regulations be consistent with BIA                    FOR FURTHER INFORMATION CONTACT:      Ms.
                                               reservation is preempted. White                          surface leasing regulations).                         Sharlene Round Face, Bureau of Indian
                                               Mountain Apache Tribe v. Bracker, 448                    Furthermore, the Federal government                   Affairs, Division of Real Estate Services,
                                               U.S. 136, 143 (1980). The Bracker                        remains involved in the Tribal land                   1849 C Street, NW, MS–4642–MIB,
                                               balancing test, which is conducted                       leasing process by approving the Tribal               Washington, DC 20240, at (202) 208–
daltland on DSKBBV9HB2PROD with NOTICES




                                               against a backdrop of ‘‘traditional                      leasing regulations in the first instance             3615.
                                               notions of Indian self-government,’’                     and providing technical assistance,                   SUPPLEMENTARY INFORMATION:
                                               requires a particularized examination of                 upon request by a Tribe, for the
                                               the relevant State, Federal, and Tribal                  development of an environmental                       I. Summary of the HEARTH Act
                                               interests. We hereby adopt the Bracker                   review process. The Secretary also                       The HEARTH Act makes a voluntary,
                                               analysis from the preamble to the                        retains authority to take any necessary               alternative land leasing process
                                               surface leasing regulations, 77 FR at                    actions to remedy violations of a lease               available to Tribes, by amending the


                                          VerDate Sep<11>2014   18:25 Jul 05, 2018   Jkt 244001   PO 00000   Frm 00038   Fmt 4703   Sfmt 4703   E:\FR\FM\06JYN1.SGM   06JYN1



Document Created: 2018-07-06 00:46:39
Document Modified: 2018-07-06 00:46:39
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.
ContactSharlene Round Face, Bureau of Indian Affairs, Division of Real Estate Services, 1849 C Street, NW, MS-4642- MIB, Washington, DC 20240, at (202) 208-3615.
FR Citation83 FR 31562 

2024 Federal Register | Disclaimer | Privacy Policy
USC | CFR | eCFR