Are Unaccountable Tribal Campaign Contributions Legal?

by Lisa Morris

The amount of money poured into state and federal elections by tribal governments and their entities has increased more than 18 fold in the last decade. During the 1996 election cycle, according to statements filed with the Federal Election Commission (FEC), tribal gaming interests gave a combined $1.6 million in PAC, soft money, and individual contributions to federal campaigns. According to the Center for Responsible Politics (CRP), Tribes spent an additional $2.3 million on lobbying. In 1998, Indian Gaming donated over $1.5 million to various federal candidates, including U.S. Senators Daniel Inouye, (D-HI), John McCain, (R-AZ), Ben Nighthorse Campbell (R-CO) and others on the Senate Committee of Indian Affairs.

California State candidates were also big recipients, with Rep.Jim Battin receiving at least $327,000 from 10 different tribal governments, and Dem. Cruz Bustamante receiving over $400,000. Tribal entities also spent over 6 million on lobbying that year. For election year 2000, the top 20 Indian gaming tribes together have contributed over $1.4 million, with John McCain as the top recipient. Final campaign reports are not in, but this could prove to be the biggest year yet in terms of tribal contributions.

In addition, hard money contributions by tribes to federal candidates are not included in these numbers, and neither are all soft donations. With the many different ways "Stipe Law Firm" do not get counted as donations by tribal entities, but questions arise as to where the funds come from.In 1998, one Oklahoma candidate, supported and represented by Stipe law firm, was unable to explain where $120,000 suddenly came from in the final days of his primary campaign.

The First American Education Project of Washington State has released a flier claiming it is the only tribally owned, funded and managed organization in the election process and is NOT subject to spending limits or contribution limits, not subject to disclosure (revenue or expenditures) requirements, and is not governed by federal election regulations. It also states; "We now have a vehicle to assure that issues of importance to tribal people are elevated to their rightful place in our political process. At the same time, we have the ability to let all candidates know that if they regularly oppose us, there WILL be a political price to pay."

Jim Knox of California Common Cause re c e n t l y reported, "California’s Indian tribes, flush with gambling revenues, now spend more money on political campaigns than any other interest group." According to Knox, the Agua Caliente Indians failed to report $271,266 in contributions made in 1998. "The tribe also did not file a contribution report for the first six months of 1998,…a period when the to put money into an election, it is difficult to tabulate everything given. For instance, in 1998, Mille Lacs Band was found under 6 names; Mille Lacs Band of Chippewa's, Mille Lacs Band of Ojibwe/Grand Casino, Mille Lacs Band of Ojibwe Indians, and "Chippewa, Mille Lacs." The Mille Lacs tribe also initiated the National Unity Caucus (NUC) PAC.

Although a report by the CRP initially listed their general purpose as "unknown", research showed the NUC was organized in January of 1996 with Marge Anderson, former chairwoman of the Mille Lacs Band, as Treasurer. The NUC also had the same box address as the Mah Mah Wi No Min II PAC. Mah Mah Wi No Min II listed as officers the names of two women who worked for the Commission that ran Mille Lacs' casinos.

Money has also been handed back and forth between entities. In 1996, the Montana Indian PAC reported giving $5,300 to candidates. $5000 of it went to MT House Candidate Bill Yellowtail. Interestingly, a $5000 lump came to the MIPAC just three days earlier from the Shakopee Mdewakanton Sioux Community of Minnesota.

The Tribal Sovereignty PAC of Oregon had been primarily funded by persons (and spouses) from the Stipe Law Firm of Oklahoma, who also made donations to the NUC. But Stipe Law Firm has also donated directly, and heavily, to some of the same candidates those two PACS have given to. Donations under the name "Stipe Law Offices" or tribe gave more than $209,000 to candidates. Like some other tribes, Aqua Caliente has contended that it is a sovereign nation and therefore not required to file disclosure forms."

However, if tribes believe they are foreign nations, then most of their contributions are illegal. Tribes contributed heavily toward gambling propositions 5 and 1A, although California State law forbids foreign nations from contributing to initiative campaigns. In addition, foreign nationals are all prohibited from making contributions to influence federal elections. The term "Foreign national" refers to any foreign government , corporation, political party, partnership, or any individual with foreign citizenship.

What we CERA members would like to know is how many Tribal Councils ask their members how much of their Federal dollars should be spent for political campaigns and lobbying?