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USDOL/OALJ Reporter
Cherokee Nation of Oklahoma v. USDOL, 97-JTP-12 (ARB June 26, 1998)

U.S. Department of Labor
Office of Administrative Law Judges
525 Vine Street, Suite 900
Cincinnati, OH 45202

DATE: June 26, 1998

CASE NO. 97-JTP-12

In the Matter of

CHEROKEE NATION OF OKLAHOMA,
    Complainant,

    v.

U.S. DEPARTMENT OF LABOR,
    Respondent,

    and

DELAWARE TRIBE OF INDIANS,
    Party-in-Interest.

Before: THOMAS F. PHALEN, JR.
    Administrative Law Judge

DECISION AND ORDER ON REMAND1

   Pursuant to an Order dated May 12, 1998,2 the parties were directed to file briefs concerning the issue of whether the Grant Officer for the United States Department of Labor appropriately directed the issuance of funds to the Party-in-Interest, Delaware Tribe of Indians, instead of to the Complainant, Cherokee Nation of Oklahoma, under the provisions of the Job Training Partnership Act (JTPA),3 as it may have been affected or amended by the 1992 Appropriations Act (Appropriations Act),4 for the program year commencing on July


[Page 2]

1, 1998. Having considered the entire record and the positions of the parties as set forth in their briefs, this Decision and Order is intended to resolve that controversy so that the designated JTPA program funds may be disbursed in a timely manner by the Grant Officer, as directed by the May 7, 1998, remand order of the Administrative Review Board.

   On September 23, 1996, the Secretary of Interior renewed recognition of the Delaware Tribe by retracting a May 24, 1979, letter of a predecessor that had terminated a seventeen year relationship between the Delaware Tribe and the federal government.5 Thereafter, on November 13, 1996, the Secretary of the Interior placed the Delaware Tribe on the list of federally recognized Indian tribes.6 The U.S. Department of Labor ("DOL") Grant Officer relied on that list in issuing JTPA funding to the Delaware Tribe for the 1998 Program Year, commencing July 1, 1998. Subsequently, the Cherokee Nation challenged, 1) the above federal recognition of the Delaware Tribe within the federal court system in Cherokee Nation of Oklahoma v. Babbitt, 7 , and 2) the disbursement of JTPA funds to the Delaware Tribe within the DOL, which is the subject of the present matter.

   The central issue in the present controversy is whether the DOL Grant Officer properly granted JTPA funds to the Delaware Tribe by relying on the Secretary of Interior's decision to place the tribe on the list of federally recognized Indian tribes, rather than to the Cherokee Nation based upon the wording of the 1992 Appropriations Act. On November 14, 1997, the undersigned issued an order granting stay pending the decision in the District Court's action. Cherokee Nation appealed the order to the Board, which reversed the stay order, and, in its remand order, instructed the undersigned to address the legal effect of the Appropriations Act.

   The relevant portion of the Appropriations Act states,

Provided further, That until such time as legislation is enacted to the contrary, none of the funds appropriated in this or any other Act for the benefit of Indians residing within the jurisdictional service area of the Cherokee Nation of Oklahoma shall be expended by other than the Cherokee Nation....8

   Determinations on the validity of appropriation riders that modify or repeal existing statutes have been discussed in detail by the United States Supreme Court. Several general rules have been developed through related cases. First, repeal of legislation by implication is disfavored. Tennessee Valley Authority v. Hill, 437 U.S. 153, 190 (1978). This "applies with even greater force when the claimed repeal rests solely in an Appropriations Act." Id. Thus, the Act cannot repeal by implication the provisions of the JTPA that allow federally recognized Indian tribes, bands, and groups to participate in receiving and distributing national funds for the benefit of Native Americans in their areas. Second, "[o]nly a clear repugnance' between the previous legislation and the appropriations bill warrants a finding that Congress intended to repeal the previous legislation." Environmental Defense Center v. Babbitt, 95 C.D.O.S. 9368 (1995). Thus, the practical


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rule is that an appropriations rider does not modify or repeal an existing statute unless there is an "affirmative showing of an intention to repeal . . . when the earlier and later statutes are irreconcilable." Morton v. Mancari, 417 U.S. 535, 550 (1974). In this Act, if it is assumed that the provisions of the JTPA and the Appropriations Act are irreconcilable, Congress failed to make any affirmative showing of intent to repeal the JTPA. The one exception to the general rule that an appropriations rider does not modify or repeal existing statutes is that "Congress [nonetheless] may amend substantive law in an appropriations statute, as long as it does so clearly." Robertson v. Seattle Audubon Society, 503 U.S. 429, 440-41 (1992). Congress could have amended the JTPA through the Act, but its statement in the Appropriations Act was not clear if, what it was doing was to restrict the power of the DOL Grant Officer to distribute funds appropriated under "this or any other Act for the benefit of Indians residing within the jurisdictional service area" to the Cherokee Nation.

   The issue for determination is whether Congress intended the Appropriations Act to modify the distribution of funding under the JTPA. The primary indication of congressional intent is the statute's language. United States v. Aguilar, 21 F.3d 1475, 1480 (9th Cir. 1994). The language of the Appropriations Act purports to restrict expenditure of any federal funding within the Cherokee "jurisdictional service area" solely to the Cherokee Nation.

    Since the key phrase in the Appropriations Act, "jurisdictional service area," is not used in the JTPA and is undefined in either act, it is, therefore, patently (clearly) ambiguous. The only provision in the JTPA that refers to anything akin to the phrase is one occurring under 29 U.S.C §1511 governing State job training funds, directing that its job training coordinating council publish a proposed designation of "service delivery areas," as otherwise set forth in that provision. The provisions governing training programs for Native Americans as set forth in 29 U.S.C. § 1671 (b)(2) are directed at "individuals to be served by the provisions of this section," and make such programs available to, "federally recognized Indian tribes, bands, and groups and to other groups and individuals of Native American descent." It concentrates on such individuals by their representative groups, rather than their "service delivery areas" or "jurisdictional service areas."

   Use of the term "service areas" evolved solely by virtue of the administration of the funds by the agencies and officials within those agencies, designated to distribute those funds. In other words, the term "jurisdictional service area" is what those officials say that it is, and not what Congress has defined. There could be no greater ambiguity. The 1992 Appropriations Act was properly given no effect by the DOL Grant Officer.

   In addition to the patent ambiguity left in the wake of its lack of definition, there is a latent ambiguity inherent in the relationship of the Appropriations Act's terms with other acts of Congress. Was the Appropriations Act intended to affect Indian tribes and bands beyond the Keetowah Band for which it was originally drafted, or meant to affect all such tribes and bands?9 This is not clear from an act of


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Congress entitled "Department of the Interior and Related Agencies Appropriations Act, 1992, Operation of Indian Programs," even when the term, "or any other Act," in the Appropriations Act, is considered. Does this mean any other Act related to the Bureau of Indian Affairs, or any other Act of Congress that deals with federal funds for the benefit of Native American Indians? These are latent ambiguities - those that are not so clear, but are present nonetheless.

   In 1996 the Secretary of the Interior reevaluated the status of the Delaware Tribe and restored its status as a separately recognized Tribe of Indians, eligible for federal funding and services. The DOL Grant Officer relied upon this reevaluation in directing the distribution of funds for the 1998 Program Year to the Delaware Indians in Washington, Craig, Rogers, Nowata and North Tulsa Counties, Oklahoma, and denying such funds to the Cherokee Nation for the Delaware Indians in those counties. If the "jurisdictional service area," Appropriations Act language, is patently ambiguous on its face, then it is inoperative, and the Grant Officer's action is unaffected by it. I have found that it is patently ambiguous. If the effect of the term "jurisdictional service area" is not ambiguous on its face, then its usage must be examined, since it is undefined in the statutes. Its usage, as far as the JTPA is concerned, has been by administrative action. Here, the action of the Secretary of the Interior, combined with that of the DOL Grant Officer redefined the "jurisdictional service area" of both the Cherokee Nation and the Delaware Nation, in the only way that it could under 29 U.S.C. § 1671(b)(2), by designating "the federally recognized tribes" to whom such funds would be made available. Again, the DOL Grant Officer acted legally when he made the above designation to the Delaware Tribe.

   Since the undersigned has been directed to resolve this aspect of the matter without the benefit of a court determination on its legal efficacy, it must be assumed to be a legal action until declared otherwise by a court of law.10 The latter has not happened. Therefore, the Delaware Tribe must be assumed to be properly on the list of recognized Tribes for purposes of the distribution of JTPA funds as so designated, and the Grant Officer properly within the mandate of 29 U.S.C. § 1671 in the distribution, and I so find.

   Upon instruction from the Board to address the legal effect of the Appropriations Act, I find that the Act's language was ambiguous, and of no effect in amending the language of the JTPA. I therefore find that the DOL Grant Officer acted properly in conditionally distributing JTPA funds to both the Delaware Tribe and the Cherokee Nation for Program Year 1998. I construe the JTPA to mean that any federally recognized Indian tribe, such as the Delaware Tribe and the Cherokee Nation, each of whom may apply for, and distribute JTPA funds, and do so with reliance upon the action of the Secretary of the Interior listing the Delaware Tribe as a bona fide recipient of such funds.

   Even if the unencumbered language of the original 1992 Appropriations Act was not ambiguous, and did limit the power of distribution to the Delaware Nation, two


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intervening actions, that of the Act of 199411 and the action of the Secretary of the Interior in 1996, limited the effect of that language, and redefined the scope of any applicable "jurisdictional service area" to the area then, in 1992, serviced by the Cherokee Nation, minus the area now, in 1998, to be serviced by the Delaware Tribe. I construe the "jurisdictional service area of the Cherokee Nation" referred to in the Appropriations Act to mean only the area in which it distributes JTPA funds to the members of its own nation. The fact is that the effect of the Secretary of the Interior's action in recognizing the Delaware Tribe as such under the powers of that office, altered the scope of the power to apply for and to distribute such JTPA funds to individual members of that Tribe, in its "new" "jurisdictional service area," which was formerly that of the Cherokee Nation and previously included the members of the Delaware Tribe.

   The DOL Grant Officer granted the Delaware Tribe $37,000.00 in JTPA funding for Program Year 1998, thus giving the Delaware Tribe its own, separate "jurisdictional service area" apart from the Cherokee Nation. This interpretation allows both the JTPA and the Act to be read in concert without one repealing the other. Thus, the DOL Grant Officer's decision to allocate money to the Delaware Tribe for Program Year 1998 was a proper action on reading the plain meaning of the JTPA and the Appropriations Act. Therefore,

   IT IS ORDERED that the DOL Grant Officer distribute the $37,000.00 approved JTPA funding to the Delaware Tribe for the Delaware Indians in Washington, Craig, Rogers, Nowata and North Tulsa Counties, Oklahoma, for the 1998 Program Year which begins on July 1, 1998.

       Thomas F. Phalen, Jr.
       Administrative Law Judge

[ENDNOTES]

1 None of the parties have contended that there are any facts in dispute in this case. Therefore, the order is being issued as a final decision and order.

2 The May 12, 1998, Order of the undersigned stated: "On May 7, 1998, the Administrative Review Board reversed the November 14, 1997 stay order of the undersigned and directed that further proceedings be conducted consistent with its order. The Board stated in its order, Our concern is whether the language of the Appropriations Act binds DOL's Grant Officer. ... The funding in question is from a DOL appropriation, and therefore it is our responsibility under these circumstances to ensure that the DOL Grant Officer properly awards such monies. The issue of the legal effect of the 1992 Appropriations Act restriction on the activities of DOL must be addressed by this agency, even if the District Court finds for the Delawares with regard to its tribal status on the merits.' " (Order @ p. 3)

3 29 U.S.C. §§1501-1791 (1988) and regulations issued thereunder at 20 C.F.R. Parts 626-638 (1997)

4 Pub. L. 102-105, Stat. 990, 1004 (Nov. 13, 1991)

5 44 Fed. Reg. 7235 (1979).

6 61 Fed. Reg. 50862 (1996).

7 U. S. District Court for the District of Columbia, Civ. No. 96-2284 (TFH). In this case, the issue of whether the Secretary of Interior properly included the Delaware Tribe on the federal list of recognized Indian tribes is currently pending before the District Court on remand from the United States Court of Appeals. See, Cherokee Nation of Oklahoma v. Babbitt, 117 F.3d 1489 (D.C. Cir. 1997), remanding 944 F. Supp. 974 (D.C. Cir. 1996).

8 Supra, n.4

9 H.R. 2686 Report 102-116 (June 19, 1991).

10 The Board considers the issue concerning the legal bases for the Delawares' relationships with the Cherokee Nation, the DOI, and its related agencies to be beyond the scope of the issue before the DOL. The issue before the DOL, and therefore before the undersigned, is the result of the legislation embedded in the Department of the Interior and Related Agencies Appropriations Act, which appears to restrict any federal funding within the Cherokee Nation jurisdictional service area solely to the Cherokee Nation.

11 A 1994 amendment to provisions governing Protection of Indians and Conservation of Resources, and the organization of Indian Tribes, in particular, prohibition on new regulations, prohibited the enhancement of the privileges of one tribe over another, stating: "Departments or Agencies of the United States shall not promulgate any regulation or make any decision or determination pursuant to ...25 U.S.C. 461 et seq. ... or any other Act of Congress, with respect to a federally recognized Indian tribe that classifies, enhances, or diminishes the privileges and immunities available to the Indian tribe relative to other federally recognized tribes by virtue of their status as Indian tribes." 25 U.S.C. 476(f), Pub. L. 103-263 § 5(b), 108 Stat.709 (May 21, 1994) This provision may or may not amend the Appropriations Act, but it does, at the very least, express a sense of the Congress that programs such as the JTPA should be allowed to operate without such appropriations act interference as that indicated in the 1992 Appropriations Act.



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