Trading at the River Buy Indian: What Are We Waiting For? May 5, 2010 Gabriel “Gabe” Galanda, Partner, Galanda Broadman, PLLC, Seattle2 Tribal Sovereignty3 The inherent right to make our own laws and to be ruled by them. 4 Tribal Economic Sovereignty5 The inherent right to make our own business laws and to exercise them. To realize true tribal economic sovereignty, we must aggressively develop an Indian Prriivatte SecttorrBuy IIndiianTribal Private Sector Economiic SoverreiignttyTribal Private Sector Indian Country wields at least $26 billion in purchasing power thanks to Indian gaming. Why then are we not witness to a vibrant tribal small business sector?9 Because Indian Country tolerates, if not encourages or rewards, non-Native business decision-making on our reservations. 10We tolerate, if not encourage or reward, non-Native “middle men” who do not understand the need to support tribal small business. 11Tribal member-owned businesses get squeezed out by non-Indian mega corporations, thanks to our non-Native middle managers. 17Tribal member-owned businesses get squeezed out by non-Indian mega corporations, thanks to the Tribes (us), who turn a blind eye to our non-Native middle managers. 18What about Indian selfdetermination, self-sufficiency, self-reliance, etc.? 19Tribal leadership must teach and mandate that tribal and casino management Buy Indian. 20Because without successful Tribal member-owned businesses, we will never enjoy the benefits of a prosperous private sector. Tribal Private Sector Indian Jobs – reduces reliance on tribal hand-outs Retain Indian Talent – reverses Indian “brain drain” Reservation Wealth – reverse leaking tribal economies Tribal Tax Base – creates opportunities for tribal taxation of reservation products, services and sales Quality of Tribal Life & Tribal Pride • “[S]mall business activity has a tremendous psychological and emotional impact on reservation people, particularly reservation youth. When they see businesses sprouting up, they see hope for the future.” Tribal Sovereignty – helps reduce federal dependency • Rebuilding Native NationsTribal Private Sector Without a prosperous Indian private sector, tribal economies will be “leaking economies”Tribal Private Sector Without a prosperous Indian private sector, money that flows onto the reservation will continue to flow right back off of the reservation, into non-tribal economiesMultiplier Effect The notion that an initial infusion of monetary spending leads to increased consumption spending, and in turn an increase in national income that is greater than the initial amount of spendingMultiplier Effect In Indian Country, tribes and casinos spend money on goods and services provided by the likes of Sysco, which takes that money off of the Reservation – where it spends that cash on non-Indian products and labor needed to run its businessesMultiplier Effect Because Sysco passes those tribal dollars into the hands of other non-Indians, the income of the nontribal community multiplies. However, the wealth of the Native Nation in/with which Sysco does business remains stagnant; it does not multiply; it leaks28 As tribal economies leak, tribal “economic schizophrenia” prolongs: Lavish casinos and resorts (run by tribes) on reservation exteriors, yet Indian families living in poverty within Indian Country’s interior. 29So, how do we stem the gush of tribal money off-reservation? How do we begin to create a vibrant tribal private sector? 30 One Idea: The Tribal “Buy Indian" Act 31 In last years federal stimulus, Congress mandated that Government “buy American.” Why can’t we? 32Since 1910, Congress has directed the Interior Secretary to buy Indian – to purchase "the products of Indian industry . . . in open market” (25 U.S.C. 47). Why can’t we? 33The Hoopa Tribal Council passed Title 50, the Tribal Comprehensive Business Policy Code? Why can’t (aren’t) we? 50.104. Hoopa Tribal and Private Sector Business Policy The Tribe recognizes that a strong Reservation economy must include both tribal and private sector development. It is the policy of the Tribal Council to promote both tribal and private sector development within the exterior boundaries of the Reservation and elsewhere within the jurisdiction of the Tribe. It shall be the policy of the Tribe to interpret laws, policies, regulations, procedures, etc., in a manner that facilitates the development and promotion of businesses on the Reservation to the greatest commercial potential possible.50.104. Hoopa Tribal and Private Sector Business Policy It is the policy of the Tribal Council that, to the greatest extent feasible, and without waiving authorities over such business activities, the Hoopa Tribal Government, its entities and its employees, while conducting affairs under the authorities of such offices shall not knowingly and unnecessarily interfere, obstruct, hinder, nor negatively impact private sector business(es) . . .It is the policy that the Tribe will not knowingly and unnecessarily create unfair business practices or unfair competition, nor interfere, obstruct, hinder or negatively impact, any private sector business . . . • Unfair business practices means taking governmental actions that create difficulties or burdens on private sector businesses, enact additional regulatory or administrative requirements, or cause additional costs to be incurred . . . • Unfair competition means taking governmental action that favors one business over another, or that results in the Tribe creating governmental entities that unfairly compete against private sector businesses . . . 50.104. Hoopa Tribal and Private Sector Business PolicyIt is the policy that Hoopa Tribal Governmental purchasing power . . . be used to support local businesses and that every effort be made by Tribal departments to purchase from local vendors and businesses. When comparing the cost for non-local purchases, all costs associated with a non-local purchase are to be taken into consideration, including mileage, wages, per diem, taxes and freight. In addition, written documentation must be submitted along with a request for non-local purchases which explain why it is not feasible to make such purchase(s) locally. 50.109. Hoopa Local Purchasing Policy Buy Indian Why aren’t we – why aren’t our Tribes – passing Tribal laws that: • Mandate the promotion of the Indian private sector? • Forbid Tribal business interference? • Require that immense Tribal purchasing power be used support Indian businesses? • Require Tribes to, like the U.S., Buy IIndiian? It’s time that we do; that we just do itBuy Indian Non-Native middle managers should be taught, and required by Tribal law, to purchase from Indian businesses – or explain why it is not feasible to Buy IIndiianJust Do It! When you return home, encourage your Tribal Council to pass a Buy IIndiian Actt – to mandate, by Tribal law, that your Tribe (and its casino) Buy IndianThank You! Please call or email: 206. 300.7801 direct gabe@galandabroadman.com