CLUB ONE CASINO, INC., DBA Club One Casino; GLCR, INC., DBA The Deuce Lounge and Casino, Plaintiffs-Appellants, v. DAVID BERNHARDT; MIKE BLACK, Acting Assistant Secretary of the Interior - Indian Affairs; U.S. DEPARTMENT OF THE INTERIOR, Defendants-Appellees.
No. 18-16696
UNITED STATES COURT OF APPEALS FOR THE NINTH CIRCUIT
May 27, 2020
D.C. No. 1:16-cv-01908-AWI-EPG. Appeal from the United States District Court for the Eastern District of California, Anthony W. Ishii, District Judge, Presiding. Argued and Submitted February 11, 2020, San Francisco, California.
Before: R. Guy Cole, Jr., Ronald M. Gould, and Mary
OPINION
SUMMARY**
Tribal Gaming
The panel affirmed the district court‘s summary judgment in favor of the U.S. Department of the Interior and its Secretary in an action brought by plaintiff cardrooms, challenging the Secretary‘s approval of a Nevada-style casino project on off-reservation land in the County of Madera, California by the North Fork Rancheria of Mono Indians, a federally recognized tribe.
Section 3719 of
The panel rejected plaintiffs’ contention that the Secretarial Procedures were issued in violation of
The panel rejected plaintiffs’ contention that to the extent
The panel held that plaintiffs waived two arguments raised for the first time on appeal.
The panel concluded that the Secretary‘s actions were not arbitrary, capricious, an abuse of discretion, or otherwise not in accordance with law.
COUNSEL
Robert D. Links (argued), Adam G. Slote, and Marglyn E. Paseka, Slote Links & Boreman LLP, San Francisco, California; Robert A. Olson and Timothy T. Coates, Greines Martin Stein & Richland LLP, Los Angeles, California; for Plaintiffs-Appellants.
Tamara Rountree (argued), John David Gunter II, Steven Miskinis, and Joann Kintz, Attorneys; Eric Grant, Deputy Assistant Attorney General; Jeffrey Bossert Clark, Assistant Attorney General; Environment and Natural Resources Division, United States Department of Justice, Washington, D.C.; for Defendants-Appellees.
OPINION
MURGUIA, Circuit Judge:
This action is one in a series of actions1 concerning the proposed construction and operation of a Nevada-style casino on off-reservation land in the County of Madera, California (the “Madera Parcel“) by the North Fork Rancheria of Mono Indians (the “North Fork” or “Tribe“), a federally recognized tribe. Plaintiffs-Appellants, Club One Casino and the Deuce Lounge, are cardrooms licensed by the State of California (the “State“). Plaintiffs contend that the approval of the casino project by the United States Secretary of the Interior (the “Secretary“) and the United States Department of the Interior (collectively, Defendants-Appellees) is unlawful, and they brought a host of procedural, statutory, and constitutional challenges. The district court granted summary judgment against Plaintiffs on all claims. We affirm.
I
The North Fork Rancheria of Mono Indians of California are the modern descendants of the Mono Indians, who have used and occupied lands in and near California‘s San Joaquin Valley for several centuries. The Tribe has approximately 1,750 citizens, is headquartered in North Fork, Madera County, California, and has been federally recognized since 1915.
In March 2005, the North Fork applied to the Department of the Interior to have a 305-acre plot of land in Madera County taken into trust by the United States pursuant to section 5108 of the
In September 2011, the Secretary made a determination pursuant to section 2719 of the
After this defeat at the polls, the North Fork requested that the State negotiate a new tribal-state compact to govern gaming at the Madera Parcel. The State refused, citing Proposition 48‘s passage. In March 2015, the Tribe brought an action under
In July 2016, in accordance with
Plaintiffs, the cardrooms, sued the Secretary and the Department of the Interior in the district court in December 2016. They challenged the Secretary‘s issuance of the Secretarial Procedures under the
On cross-motions for summary judgment, the district court denied Plaintiffs’ motion and granted Defendants’ motion. In accordance with case law from other circuits, the district court held that: (1) the Tribe had jurisdiction over the Madera Parcel for purposes of
II
We review the district court‘s grant of summary judgment de novo to determine whether the Secretary‘s actions were “arbitrary, capricious, an abuse of discretion, or otherwise not in accordance with law.”
III
Before proceeding to our analysis, we pause to set out the applicable statutory landscape. Gaming in Indian country is a multi-billion-dollar industry conducted pursuant to the
Gaming is permitted only on Indian lands, which are defined as “all lands within the limits of any Indian reservation,”
Importantly, section 2719 of
Additionally,
all or has refused to negotiate a Class III tribal-state compact in good faith.
In addition to
In sum, in order for a tribe to engage in any gaming on off-reservation land acquired after October 17, 1988, the following must take place: (1) land - which is either held in trust by the United States for the benefit of any Indian tribe or individual or held by any Indian tribe or individual subject to restriction by the United States against alienation,
In order for a tribe to engage in Class III gaming, however, the Secretary must also either approve a tribal-state compact,
IV
On appeal, Plaintiffs re-assert the arguments they presented to the district court. Plaintiffs contend that: (1) the Secretarial Procedures were issued in violation of
A
Plaintiffs contend that the Secretarial Procedures, which permit gaming on the Madera Parcel, were issued in violation of
1
As noted above,
In Upstate Citizens for Equality, Inc. v. United States, for example, the Second Circuit concluded that “[l]and held by the federal government in trust for Indians under [section 5108 of IRA] ‘is generally not subject to (1) state or local taxation; (2) local zoning and regulatory requirements; or, (3) state criminal and civil jurisdiction [over Indians], unless the tribe consents to such jurisdiction.‘” 841 F.3d 556, 561 (2d Cir. 2016) (alteration in original) (quoting Conn. ex rel. Blumenthal v. United States Dep‘t of Interior, 228 F.3d 82, 85-86 (2d Cir. 2000)). The court further noted that the federal government may, “by acquiring land for a tribe, divest a state of important aspects of its jurisdiction, even if a state previously exercised wholesale jurisdiction over the land and even if ‘federal supervision over [a tribe] has not been continuous.‘” Id. at 568 (alteration in original) (quoting United States v. John, 437 U.S. 634, 653 (1978)). Accordingly, “[w]hen the federal government takes land into trust for an Indian tribe, the state that previously exercised jurisdiction over the land cedes some of its authority to the federal and tribal governments.” Id. at 569 (emphasis added).4
Similarly, in Yankton Sioux Tribe v. Podhradsky, the Eighth Circuit concluded that “land held in trust under [IRA]
is effectively removed from state jurisdiction,” for “when Congress enacted [IRA] ‘it doubtless intended and understood that the Indians for whom the land was acquired would be able to use the land free from state or local regulation or interference as well as free from taxation.‘” 606 F.3d 994, 1011 (8th Cir. 2010) (quoting Chase v. McMasters, 573 F.2d 1011, 1018 (8th Cir. 1978)).
As a general matter, too, off-reservation trust land like the Madera Parcel is “Indian country” with all the jurisdictional consequences that attach to that status.5 Federal law defines “Indian country,”
As such, the federal government confers tribal jurisdiction over lands it acquires in trust for the benefit of tribes as a matter of law.
2
Plaintiffs’ next contention, that the Secretary was somehow legally required to consider whether the Tribe possessed jurisdiction and exercised governmental power over the Madera Parcel, is equally unpersuasive. Plaintiffs do not point to any provision of
As to governance, the Tribe most certainly exercises governmental power over the Madera Parcel.
In Massachusetts v. Wampanoag Tribe of Gay Head, the First Circuit similarly concluded that a tribe which had passed ordinances and entered into agreements with state and local governments for the provision of law enforcement and firefighting services exercised governmental power sufficiently within the meaning of
Here, the record clearly indicates that in late 2006 the Tribe entered into “enforceable and binding” agreements with the County of Madera and the City of Madera for the provision of law enforcement and fire protection services at the Madera Parcel. The Tribe also enacted a gaming ordinance in 2009 “governing the conduct of gaming” at the Madera Parcel. The district court also took judicial notice of the fact that the Tribe enacted an ordinance in October 2015 approving a conservation plan for the Madera Parcel.
For these reasons, both conditions were met here. The Tribe‘s jurisdiction over the Madera Parcel operates as a matter of law and the Tribe clearly exercised governmental power when it entered into agreements with local governments and enacted ordinances concerning the property.
3
Plaintiffs’ final claim in support of their argument that the Secretarial Procedures were issued in violation of
The Enclave Clause does not apply here. The Secretary‘s acquisition of land in trust for the benefit of a tribe does not result in the creation of a federal enclave or violate the Enclave Clause. See, e.g., Upstate Citizens for Equality, 841 F.3d at 571 (“When land is taken into trust by the federal government for Indian tribes, the federal government does not obtain such categorically exclusive jurisdiction over the entrusted lands.“); City of Roseville v. Norton, 219 F. Supp. 2d 130, 151 (D.D.C. 2002) (“[I]t is clear that land taken into trust for Indians does not create an exclusive federal enclave. Consequently, the Enclaves [sic] Clause is not implicated[.]“). “State jurisdiction is . . . only
reduced, and not eliminated, when the federal government takes land into trust for a tribe. Because federal and Indian authority do not wholly displace state authority over land taken into trust pursuant to § 5 of the IRA, the Enclave Clause poses no barrier to the entrustment that occurred here.” Upstate Citizens for Equality, 841 F.3d at 572.
Section 3112 also does not apply. By its own terms, the statute sets forth requirements for the federal government‘s acceptance of jurisdiction over land. See, e.g.,
Thus, Plaintiffs’ claim that the Tribe‘s acquisition of any jurisdiction over the Madera Parcel requires the State‘s consent or cession fails.
B
Plaintiffs also contend that to the extent
The authority to regulate Indian affairs is among the enumerated powers of the federal government.
The Tenth Amendment to the Constitution reserves to the states those powers not expressly delegated to the federal government. The powers delegated to the federal government and those reserved to the states by the Tenth Amendment are mutually exclusive. “If a power is delegated to Congress in the Constitution, the Tenth Amendment expressly disclaims any reservation of that power to the States[.]” New York v. United States, 505 U.S. 144, 156 (1992).
Because Congress has plenary authority to regulate Indian affairs, contrary to Plaintiffs’ argument,
C
Plaintiffs also raise two arguments for the first time on appeal. First, Plaintiffs claim the Secretarial Determination that gaming would be in the best interest of the Tribe and would not be detrimental to the surrounding community did not reflect sufficiently robust consultation with “appropriate State and local officials” pursuant to section 2719(b)(1)(A) of
“Absent exceptional circumstances, we generally will not consider arguments raised for the first time on appeal, although we have discretion to do so.” El Paso City v. Am. W. Airlines, Inc. (In re Am. W. Airlines, Inc.), 217 F.3d 1161, 1165 (9th Cir. 2000). Plaintiffs have failed to address any of the exceptions to the general rule that an argument raised for the first time on appeal is waived. See United States v. Carlson, 900 F.2d 1346, 1349 (9th Cir. 1990) (discussing the limited circumstances where the Court may consider an issue raised for the first time on appeal, which include when there are “exceptional circumstances” why the issue was not raised in the trial court, when the new issue arose while the appeal was pending because of a change in the law, and when the issue presented is purely one of law and the opposing party will not suffer prejudice as a result of the failure to raise the issue in the trial court).
Accordingly, Plaintiffs have waived these arguments.
V
In summary, the Tribe‘s jurisdiction over the Madera Parcel operates as a matter of law and the Tribe clearly exercised governmental power when it entered into agreements with local governments and enacted ordinances concerning the property. Because neither the Enclave Clause nor
AFFIRMED.
