Opinion ID: 842726
Heading Depth: 1
Heading Rank: 6

Heading: 2003 amendments and blank factors

Text: At issue in this case are the 2003 amendments of the LTBB compact. Because the compact itself is unconstitutional, the amendments of the compact are unconstitutional. Moreover, under the Blank factors, the 2003 amendments themselves constitute legislation. The amendments alter the legal rights and duties of persons outside the legislative branch, they supplant legislative action, they involve determinations of public policy, and they are not authorized by the Michigan Constitution. Because these legislative acts were undertaken unilaterally by the Governor acting on behalf of the state, the enactment of these amendments violated multiple provisions of the Michigan Constitution. A. LEGAL RIGHTS AND DUTIES The first Blank factor examines the effect of the amendments on the legal rights, duties, and relations of persons outside the legislative branch. The 2003 amendments alter the rights and relations of persons outside the legislative branch. The amendments allow a new casino to be built, which would not have been legal under state and federal law before the 2003 amendments.4 As explained above, under 18 USC 1166, state law applies to casino gaming on Indian lands. Under 4 Because the building of the second casino is “contingent on the approval of the affected local unit of State government (either city, village, or township),” § 2(F) of the amended LTBB compact, one might assert that the legal rights of the tribe have not been altered; that is, the LTBB has no “right” to build a second casino until the local unit of government approves the location of the casino. (continued…) 13 MCL 750.301, such gaming is generally prohibited in Michigan. Although MCL 432.203(1) allows for gaming “conducted in accordance with this act,” MCL 432.203(2)(d) states that the act does not apply to “[g]ambling on Native American land and land held in trust by the United States for a federally recognized Indian tribe on which gaming may be conducted under the Indian gaming regulatory act, Public Law 100-497, 102 Stat. 2467.” Under MCL 432.203(2)(d), Indian casino gaming is not allowed on Indian land subject to the Indian Gaming Regulatory Act. Thus, by allowing another casino to be built by the LTBB, the amendments alter the legal rights of the LTBB, which now possesses a legal right to build a second casino without violating state law. Moreover, the amendments extend the duration of the compact from 20 years to 25 years from the date of the amendments. Because the compact was effective in 1998, and the amendments became effective in 2003, the amendments will enable the LTBB to operate casinos for ten years longer than the original compact. From 2018 through 2028, the LTBB will be able to operate casinos, something it could not have done lawfully in the absence of the amendments. Further, under the original compact, if certain criteria were met, the LTBB would no longer be required to make tribal gaming payments to the state. For example, if the state were to allow a person to operate commercial casino games, (continued…) However, the 2003 amendments of the compact ensure that the LTBB will face no (continued…) 14 and that person was neither a federally recognized Indian tribe operating a casino pursuant to a compact nor a person operating a casino in Detroit pursuant to MCL 432.201 et seq., then the tribe could cease making payments to the state. The 2003 amendments add additional criteria: under the amended compact, if the prior criteria apply, or if the state permits casinos to be built within ten specified counties, the tribe will no longer be bound to make payments to the state. Therefore, this amendment alters the legal duty of the tribe in terms of its gaming payment obligations.5 Because the 2003 amendments alter the legal rights and duties of persons outside the legislative branch in at least several ways, the first Blank factor indicates that the 2003 amendments constitute legislation. B. SUPPLANTING LEGISLATIVE ACTION The second Blank factor considers whether the Governor’s 2003 amendments of the compact supplant legislative action. Federal law requires a tribe to abide by state law in the absence of an Indian gaming compact. 18 USC 1166. As described above, Michigan law generally forbids the creation of new casinos unless allowed by statute. MCL 750.301; MCL 432.203. Thus, in the (continued…) opposition from the state of Michigan when it builds its second casino. 5 The 2003 amendments also effect changes in the minimum gambling age and in the percentages of “net win” that must be paid to the state. These changes, however, only pertain to the second casino. 15 absence of an amendment of the Indian gaming compact, the LTBB could build a second casino only if Michigan law was changed through legislation. Moreover, the amendments extend the period that the tribe may operate its casinos from 20 years to 25 years from the date of the amendments. As described earlier, casino gaming by the LTBB is only legal pursuant to its compact under the Indian Gaming Regulatory Act. In the absence of these amendments, it would have been illegal in Michigan for the tribe to operate casinos from 2018 to 2028, and the only way the tribe could operate casinos during that period would be through a change in Michigan law through legislation. Indeed, MCL 432.203(5) suggests that casino gaming must be authorized by legislation, in the absence of a compact: If a federal court or agency rules or federal legislation is enacted that allows a state to regulate gambling on Native American land or land held in trust by the United States for a federally recognized Indian tribe, the legislature shall enact legislation creating a new act consistent with this act to regulate casinos that are operated on Native American land or land held in trust by the United States for a federally recognized Indian tribe. The legislation shall be passed by a simple majority of members elected to and serving in each house. [Emphasis added.] Under current federal law, a state does not possess the right to regulate gambling on Native American land. California v Cabazon Band of Mission Indians, 480 US 202, 207; 107 S Ct 1083; 94 L Ed 2d 244 (1987); 25 USC 2710(d). However, in the event that federal law changes, MCL 432.203(5) requires the Legislature to 16 regulate Indian gaming through legislation.6 Thus, MCL 432.203(5) strongly suggests that the enactment of legislation is the authorized method for regulating Indian gaming in Michigan, if the state is accorded the power by federal law to regulate such gaming. In the absence of the instant amendments, the building of a new casino and the ten-year extension of the period the LTBB may operate its casinos would only be permitted through legislation. Thus, the amendments can fairly be said to supplant legislative action, indicating that the amendments also constitute legislation under the second Blank factor. C. POLICY DETERMINATIONS The third Blank factor considers whether a governmental action involves “determinations of policy.” Blank, supra at 114 (opinion by Kelly, J.). Indisputably, the enactment of these amendments involved policy determinations of considerable and far-reaching consequence. The clearest example of such a determination is obviously that the LTBB has been allowed to build a second 6 The majority opines that MCL 432.203(5) is “irrelevant [to this case] because there is a compact . . . and the compact properly allows for amendments.” Ante at 9 n 2 (emphasis in original). The majority misapprehends my argument. Although I agree that MCL 432.203(5) is not directly applicable because federal law does not currently entrust regulation of Indian gaming to Michigan, the statute is nonetheless relevant. The second Blank factor considers whether the action taken by the government would normally entail legislation. Because MCL 432.203(5) indicates that regulation of Indian gaming would normally entail legislation, it contributes to the conclusion that the instant amendments supplant legislative action. 17 casino, and will be allowed to operate its existing casino for ten years longer than the original compact allowed. Presumably, the enlargement of casino operations must have been premised at least in part on a determination that casinos generally, and the LTBB casino in particular, have benefited the people of Michigan. Such a determination is a policy determination of the sort routinely undertaken by the elected representatives of the people in the Legislature. Absent the “casino exception” to representative government, these legislators would be required to confront a wide range of questions implicated by the expansion of casino gaming in Michigan: whether the growth of casinos has adversely affected the social environment of the state and, if so, whether there are ways by which this can be ameliorated; whether any such adverse effect would be exacerbated by an increase in the number of casinos; whether casinos have benefited or harmed noncasino businesses in their communities; whether casinos have affected rates of personal and business bankruptcies; whether casinos have affected crime rates; whether casinos have resulted in the congestion of particular roads or otherwise affected state and local infrastructure; whether casinos have had an adverse effect on the quality of life in rural communities near casinos; whether casinos have harmed aspects of the environment; and whether casinos have adversely affected other tourist-related businesses within the state. To confront these and other similar questions, legislators would normally seek out the views of their constituents and interested organizations, both through 18 committee hearings and through less formal means, and debate these matters with their colleagues. However, the result of the present amendment process for matters pertaining to Indian casinos is that such traditional decision-making, characteristic of a republican form of government, see US Const, art IV, § 4, has been replaced by unilateral decision-making on the part of a single person not part of the legislative branch. The third Blank factor thus also counsels in favor of finding that these amendments constitute legislation. D. MICHIGAN CONSTITUTION The fourth Blank factor essentially examines whether the constitution authorizes an exception to the normal legislative processes, in this case permitting the Governor to undertake amendments of the law. Of course, the constitution neither states nor implies such an exception. Rather, it defines the Governor’s power by simply stating, “The executive power is vested in the governor.” Const 1963, art 5, § 1. With several very specific exceptions,7 the constitution does not identify any traditionally legislative actions that the Governor may undertake, and I am aware of no inherent executive power within Michigan that allows the Governor to undertake such actions. 7 See Const 1963, art 5, § 19, pertaining to the Governor’s line-item veto authority, and Const 1963, art 5, § 2, enabling the Governor to reorganize the executive branch after the Legislature has organized the executive branch “by law.” 19 Indeed, the constitution expressly sets forth the procedures for the amendment of legislation: “The section or sections of the act altered or amended shall be re-enacted and published at length.” Const 1963, art 4, § 25 (emphasis added). Because the original LTBB compact constitutes legislation, the amendment of the LTBB compact could only occur through “reenactment,” i.e., through legislation. As described above, the elaborate process for the enactment of legislation established in article 4 nowhere allows the Governor to reenact legislation on her own volition. Consequently, the Michigan Constitution does not grant the Governor the executive authority to amend Indian gaming compacts. Nor does any other provision of the constitution grant the Governor the power to amend the compact absent involvement by the Legislature. The only arguably appropriate provision, as I discussed in TOMAC I, supra at 400-402, is Const 1963, art 3, § 5, which states: Subject to provisions of general law, this state or any political subdivision thereof, any governmental authority or any combination thereof may enter into agreements for the performance, financing or execution of their respective functions, with any one or more of the other states, the United States, the Dominion of Canada, or any political subdivision thereof unless otherwise provided in this constitution. By its terms, this provision applies only to agreements with other states, the federal government, Canada, or any political subdivision of these. This provision does not refer to Indian tribes, and therefore the Governor does not appear to possess the authority under this provision to unilaterally enter into agreements 20 with Indian tribes, even with legislative authorization. See TOMAC I, supra at 400-402 (opinion by Markman, J.). Even supposing that this provision does allow the Governor to amend a compact with Indian tribes, such agreements are limited to “agreements for the performance, financing or execution of their respective functions,” the latter presumably referring to the Governor’s exercise of her authority as the chief executive of this state. Const 1963, art 3, § 5. As I stated in TOMAC I, supra at 402, “[T]he duty and power to set the parameters for casino gambling on land within Michigan’s borders is not in any comprehensible sense a ‘function’ of the executive branch.” The amendments at issue here-- extending the duration of the compacts, enabling a new casino, adjusting the gambling age for that casino, altering tribal gaming payments-- are not related in any coherent sense to the Governor’s executive role. Because there is no constitutional warrant for the authority exercised here by the Governor, the fourth Blank factor also suggests that the amendments of the compact constitute legislation. The Blank factors thus demonstrate, I believe, that the 2003 amendments constitute legislation. This conclusion accords with the decisions of other courts that have held that Indian gaming compacts constitute legislation. State ex rel Clark v Johnson, 120 NM 562, 573; 904 P2d 11 (1995) (holding that the governor’s unilateral approval of an Indian gaming compact was “an attempt to create new law,” in violation of New Mexico’s separation of powers clause); Saratoga Co Chamber of Commerce, Inc v Pataki, 100 NY2d 801; 766 NYS2d 21 654; 798 NE2d 1047 (2003) (holding that approval of Indian gaming compact by the governor usurped the power of the legislature and violated the state constitution and the separation of powers doctrine); Narragansett Indian Tribe of Rhode Island v State, 667 A2d 280 (RI, 1995) (holding that the legislature, not the governor, has power to approve compacts under the state constitution); Panzer v Doyle, 271 Wis 2d 295, 338; 680 NW2d 666 (2004) (holding that “committing the state to policy choices negotiated in [Indian] gaming compacts constitutes a legislative function”), overruled in part on other grounds by Dairyland Greyhound Park, Inc v Doyle, 295 Wis 2d 1; 719 NW2d 408 (2006); American Greyhound Racing, Inc v Hull, 146 F Supp 2d 1012 (D Ariz, 2001) (holding that power to enter into Indian gaming compacts is “legislative”), vacated on other grounds 305 F3d 1015 (CA 9, 2002); State ex rel Stephan v Finney, 251 Kan 559; 836 P2d 1169 (1992) (holding that the power to bind the state to an Indian gaming compact is “legislative”). Because the amendments constitute legislation, they can only be effected by the procedures set forth in the constitution. As noted earlier with regard to amending a legislative act, Const 1963, art 4, § 25 requires the “section or sections of the act altered or amended” to be “re-enacted.” Amendments to laws are therefore subject to the same procedural requirements as newly enacted laws. The amendment process established in the LTBB compact violates this procedure. Instead of the Legislature originating a bill to amend the compact, the 22 Governor effected the amendments on her own authority. No bill was passed by the Legislature, and no bill was presented to the Governor. The process that was followed violated a variety of sections of the Michigan Constitution concerning how a bill becomes a law: Const 1963, art 4, §§ 25, 26, and 33. As a result, the Governor has exercised-- and the Legislature has allowed her to exercise-- powers granted solely to the Legislature.8 Thus, the amendments violate the Separation of Powers Clause, Const 1963, art 3, § 2, which states: “No person exercising powers of one branch shall exercise powers properly belonging to another branch except as expressly provided in this constitution.” By approving the Governor’s exercise of amendatory power, the majority establishes the second provision of the “casino exception” to representative government: in the realm of Indian casinos, the Governor may enact the equivalent of legislation without the involvement of the Legislature. The majority opinion, which permits the Governor to undertake legislative acts by contracting with the affected Indian tribe, may be aptly described as establishing, in the realm of Indian casinos, “government by contract” in lieu of “government by constitution.” Pursuant to this, the Governor and the Legislature 8 The Legislature’s acquiescence in the enlargement of the Governor’s power is irrelevant in assessing the propriety of this grant: “the acceptance by one branch of the expansion of the powers of another branch is not dispositive in whether a constitutional power has been properly exercised.” Nat’l Wildlife Federation v Cleveland Cliffs Iron Co, 471 Mich 608, 616; 684 NW2d 800 (2004). 23 may avoid restrictions, i.e., checks and balances, imposed under our “government by constitution,” which provides that the Legislature alone may exercise “[t]he legislative power of the State of Michigan,” Const 1963, art 4, § 1, and that the Governor may exercise only “[t]he executive power,” Const 1963, art 5, § 1.