Opinion ID: 1280889
Heading Depth: 2
Heading Rank: 1

Heading: The Federal Statutory and Regulatory Scheme

Text: The Community is a federally recognized Indian tribe organized under Section 16 of the Indian Reorganization Act of June 18, 1934 (the IRA), 48 Stat. 987, 25 U.S.C. § 476. In this respect, the Community exercises its sovereign governing powers within the framework established by federal statute. See Tracy v. Superior Court, 168 Ariz. 23, 29-30 n. 6, 810 P.2d 1030, 1036-37 n. 6 (1991). The Community has possession and control of lands reserved to it by Presidential Executive Order. 1 C. KAPPLER, INDIAN LAWS AND TREATIES 806-07 (2d ed. 1904). Under the IRA, the Community has the power to prevent the sale, disposition, lease, or encumbrance of tribal lands, interests in lands, or other tribal assets without the consent of the tribe; and to negotiate with the Federal, State, and local Governments. 25 U.S.C. § 476. Thus, the state's power of eminent domain does not extend to the land in question. Although the Community possesses the power to negotiate with a state agency, the United States holds title to reservation lands as trustee for the Community. Any disposition of tribal land must therefore be conducted in accordance with federal law. See Oneida Indian Nation v. County of Oneida, 414 U.S. 661, 670-71, 94 S.Ct. 772, 778-79, 39 L.Ed.2d 73 (1974); see generally F. COHEN, HANDBOOK OF FEDERAL INDIAN LAW 508-28 (1982). Under federal law, a right-of-way across trust land may be granted only by the Secretary of the Interior (the Secretary), acting for the United States and on behalf of the tribe. 25 U.S.C. § 323. Compensation for such a right-of-way must be not less than but not limited to the fair market value of the rights granted, plus severance damages, if any, to the remaining estate. 25 C.F.R. § 169.12 (1990). No right-of-way may be granted across the lands of individual allottees without the consent of a majority of the affected landowners. 25 U.S.C. § 324. After an agreement is reached as to compensation, the consideration is paid as a lump sum to the Secretary. 25 U.S.C. § 325 (compensation is to be received by Secretary on behalf of Indian owners); see Pueblo de San Felipe v. Hodel, 770 F.2d 915 (10th Cir.1985) (Secretary has discretion to set up escrow condition in right-of-way transaction). Any subsequent distribution to individual allottees becomes the duty of the Secretary and is conducted pursuant to the regulations of that office. 25 U.S.C. § 325. The Indian tribe must consent to the final agreement before the grant may issue. 25 U.S.C. § 476. However, the Secretary maintains direct control over the transaction and generally delegates a significant portion of the responsibility to the BIA pursuant to 25 U.S.C. § 1a. Under the Indian Self-Determination Act, and in accordance with the long-standing policy of Congress to promote tribal self-determination, a tribe may contract with the BIA to assume direct control of such a transaction. 25 U.S.C. § 450f; 25 C.F.R. § 271.12. In this case, the Community contracted with the BIA to manage its tribal lands, including all functions associated with the grant of right-of-way and subsequent disbursement of funds to the individual allottees. See State Attorney General's Responsive Memorandum in the Superior Court at 3-4 (Memorandum), Exh.J. Under such a contract, the tribe must act in accordance with the federal statutes and regulations that normally govern the program or transaction involved. See, e.g., 25 C.F.R. § 271.51 (imposing the BIA procurement regulations on tribal contractors); § 271.56 (imposing constraints of the federal Privacy Act, 5 U.S.C. 552a, on tribal contractors).