(Cite as: 69 F.3d 878, 1995
WL 649595 (8th Cir.(S.D.)))
State of South Dakota and municipality sought judicial review,
under Administrative Procedure Act (APA), of decision by assistant Secretary of
Interior for Indian Affairs approving application by Lower Brule Tribe of Sioux
Indians for acquisition of commercial land in trust for tribe pursuant to Indian
Reorganization Act (IRA). The
United States District Court for the District of South Dakota, Richard H. Battey,
Chief Judge, granted Secretary's motion to dismiss on jurisdictional grounds.
State and city appealed. The
Court of Appeals, Loken, Circuit Judge, held that section of IRA authorizing
Secretary to acquire land in trust for Indians was unconstitutional, in that it
violated nondelegation doctrine by providing no legislative standards governing
Secretary's acquisition, and that Secretary thus had no authority to acquire
land in trust for tribe.
Reversed and remanded.
Diana E. Murphy, Circuit Judge, filed dissenting opinion.
West
Headnotes
[1] Constitutional Law k60
92k60
Most Cited Cases
Under
"nondelegation doctrine," Congress may not constitutionally delegate
its legislative powers to another branch of government.
U.S.C.A. Const. Art. 3, § 1 et seq.
[2] Constitutional Law k60
92k60
Most Cited Cases
In
determining whether statute satisfies nondelegation doctrine, court must inquire
whether Congress has itself established standards of legal obligation and
thereby performed its essential legislative function, being mindful, however,
that nondelegation doctrine does not prevent Congress from obtaining assistance
of its coordinate branches. U.S.C.A.
Const. Art. 3, § 1 et seq.
[3] Constitutional Law k62(2)
92k62(2)
Most Cited Cases
So
long as Congress lays down by legislative act an intelligible principle
governing the exercise of delegated power, it has not unlawfully delegated its
legislative power; delegation is
overbroad only if there is absence of standards for guidance of administrator's
action, so that it would be impossible in a proper proceeding to ascertain
whether will of Congress has been obeyed. U.S.C.A.
Const. Art. 3, § 1 et seq.
[4] Constitutional Law k62(2)
92k62(2)
Most Cited Cases
Judicial
review is relevant safeguard in considering delegation issues, so long as
Congress clearly delineates general policy, public agency which is to apply it,
and boundaries of this delegated authority;
private rights are protected by access to courts to test application of
policy in light of these legislative declarations, in that judicial review
perfects delegated lawmaking scheme by assuring that exercise of such power
remains within statutory bounds.
[5] Indians k12
209k12
Most Cited Cases
Broad
language of section of Indian Reorganization Act of 1934 authorizing Secretary
of Interior to acquire lands in trust for Indians delegates unrestricted power
to acquire land from private citizens for private use and benefit of Indian
tribes or individual Indians, and there are no other perceptible boundaries or
intelligible principles, within four corners of statutory language, that
constrain delegated authority. Indian
Reorganization Act, § 5, 25 U.S.C.A. § 465.
[6] Eminent Domain k8
148k8
Most Cited Cases
Power
of Secretary of Interior to purchase land to be held in trust for Indian tribe
triggers complementary power to acquire land by condemnation. Indian Reorganization Act, § 5, 25 U.S.C.A. § 465;
40 U.S.C.A. § 257.
[7] Eminent Domain k1
148k1
Most Cited Cases
Power
to acquire land by condemnation for public purpose is inherent aspect of
sovereignty.
[8] Eminent Domain k6.1
148k6.1
Most Cited Cases
In
exercising power to acquire land by condemnation, Congress need not select
particular land to be taken; that
function may be delegated to executive branch.
[9] Eminent Domain k68
148k68
Most Cited Cases
So
long as condemnation of land for public purpose serves a public use, necessity
or expediency of appropriating any particular property is not a subject of
judicial cognizance; however, claim
that taking is not for public use is open for judicial consideration.
40 U.S.C.A. § 257.
[10] Eminent Domain k45
148k45
Most Cited Cases
[10] Indians k12
209k12
Most Cited Cases
United
States may purchase land by condemnation for Indian reservation as public use,
and Congress may therefore acquire nonreservation lands in trust for public use
that benefits Indians or Indian tribes. Indian
Reorganization Act, § 5, 25 U.S.C.A. § 465.
[11] Constitutional Law k62(5.1)
92k62(5.1)
Most Cited Cases
[11] Indians k12
209k12
Most Cited Cases
Provision
of Indian Reorganization Act authorizing Secretary of Interior to acquire lands
in trust for purpose of "providing land for Indians" provides agency
with no intelligible principle or boundaries by which public use underlying a
particular acquisition may be defined and judicially reviewed, thus greatly
expanding extent of standardless delegation, in violation of nondelegation
doctrine, which requires at minimum that Congress, not the executive, articulate
and configure underlying public use justifying an acquisition.
U.S.C.A. Const. Art. 3, § 1 et seq.;
Indian Reorganization Act, § 5, 25 U.S.C.A. § 465.
[12] Indians k12
209k12
Most Cited Cases
Although
delegation questions are normally considered in light of statute's legislative
history and context and any narrowing agency interpretation, provision of Indian
Reorganization Act authorizing Secretary of Interior to acquire lands to be held
in trust for Indians would be interpreted as broadly as possible, consistent
with its literal language, as required by rule of
Chase v. McMasters which
rejected narrow construction of statutory purpose of "providing land for
Indians," in finding that statutory delegation granted Secretary unlimited
power to acquire land and immunized exercise of such power from judicial review
by committing it entirely to agency discretion and was therefore
unconstitutionally overbroad. U.S.C.A.
Const. Art. 3, § 1 et seq.; Indian
Reorganization Act, § 5, 25 U.S.C.A. § 465;
25 C.F.R. § 151.10.
[13] Constitutional Law k62(5.1)
92k62(5.1)
Most Cited Cases
[13] Indians k12
209k12
Most Cited Cases
Total
absence of procurement principles and safeguards in statute authorizing
Secretary of Interior to acquire land in trust for Indians violates
nondelegation doctrine by imposing insufficient boundaries on delegated
authority, inasmuch as procurement practices of tribe and Bureau of Indian
Affairs (BIA) under statute as literally construed are not subject to judicial
review. Indian Reorganization Act,
§ 5, 25 U.S.C.A. § 465.
[14] Statutes k64(2)
361k64(2)
Most Cited Cases
Secretary
of Interior had no authority to acquire land in trust for tribe under provision
of Indian Reorganization Act, which unconstitutionally delegated legislative
power to make important choices of social policy to executive agency without
providing intelligible principle to guide exercise of delegated discretion,
thereby making exercise of delegated power immune from judicial review.
U.S.C.A. Const. Art. 3, § 1; Indian
Reorganization Act, § 5, 25 U.S.C.A. § 465.
*880
John P. Guhin, Assistant Attorney General, Pierre, South Dakota, argued (Steven
R. Smith, on the brief), for appellant.
Lisa E. Jones, U.S. Department of Justice, Washington, D.C.,
argued (Mikal G. Hanson, Edward J.
Shawaker and Andrea Nervi Ward, on the brief), for appellee.
Before MAGILL, LOKEN, and MURPHY, Circuit Judges.
LOKEN, Circuit Judge.
**1
The State of South Dakota and the City of Oacoma, South Dakota, appeal the
district court's dismissal of their challenge to the Secretary of the Interior's
acquisition of commercial land in trust for the Lower Brule Tribe of Sioux
Indians. Concluding that 25
U.S.C. § 465, the statute authorizing acquisition of the land, is an
unconstitutional delegation of legislative power, we reverse.
I.
In March 1990, the Tribe submitted an application under 25
U.S.C. § 465, asking the Secretary to acquire ninety‑one acres of land in
trust for use by the Tribe. The
land is located seven miles from the Tribe's reservation and is partially within
the City of Oacoma. The Tribe
stated that the land would be used to create an industrial park adjacent to an
interstate highway, explaining that "[t]his site, Trust status for the
land, and tax advantages are critically necessary for the development to
occur."
The State of South Dakota and the City of Oacoma protested in
writing to the Secretary's Bureau of Indian Affairs ("BIA").
When BIA's Area Director notified the State and the City in March 1991
that the Tribe's application would be approved, they appealed to the Interior
Board of Indian Affairs. BIA then disclosed that the Assistant Secretary for
Indian Affairs had approved the application in December 1990, without notifying
the protestants. The Board
dismissed the appeal because it has no jurisdiction to review decisions by the
Assistant Secretary. State of South Dakota & Town of Oacoma v. Aberdeen
Area Director, BIA, 22 I.B.I.A. 126 (1992).
In July 1992, the State and the City filed this action against
the Department of the Interior and certain of its officials seeking judicial
review under the Administrative Procedure Act, 5 U.S.C. §§ 701‑706.
For convenience, we will refer to the defendants collectively as
"the Secretary," because he is the Executive Branch official
authorized to act under § 465. We
will refer to the State and the City collectively as "plaintiffs."
Plaintiffs allege that they are aggrieved by the Secretary's
acquisition because it deprives them of tax revenues and may place the land
beyond their regulatory powers. They
contend that the acquisition is invalid because § 465 is an unconstitutional
delegation of legislative power. Alternatively,
they contend (i) that the agency violated its internal rules of procedure and
the Assistant Secretary acted beyond the scope of his delegated authority; (ii)
that the approval was arbitrary and capricious and not in accordance with the
agency's governing regulations, see 25 C.F.R. §§ 151.1‑.14;
and (iii) that the Tribe plans to develop the land as a gaming casino and
the Secretary was aware of the Tribe's true intentions but failed to comply with
the approval procedures of the Indian Gaming Regulatory Act, 25 U.S.C. §§
2701‑2721.
In November 1992, the Secretary took title to the lands in
trust for the Tribe. In
January 1994, the Secretary moved to dismiss on the ground that a § 465
acquisition is action "committed to agency discretion by law" and
therefore not subject to judicial review.
See 5 U.S.C. § 701(a)(2);
Heckler v. Chaney, 470 U.S. 821, 828‑30, 105 S.Ct. 1649,
1654‑55, 84 L.Ed.2d 714 (1985). The district court granted the motion to dismiss,
concluding that § 465 is not an unconstitutional delegation of legislative
power because the statute identifies the agency to which power is delegated and
"clearly delineates the general policy to be applied and the bounds of that
delegated authority." Without
reaching the "committed to agency discretion" issue, the court also
held, sua sponte, that it had no
jurisdiction to review plaintiffs' other claims because the *881 Quiet Title Act, 28 U.S.C. § 2409a, which permits the United
States to be sued to resolve real property disputes, "does not apply to
trust or restricted Indian lands." [FN1]
FN1.
The court relied on State of Florida v.
United States Dep't of the Interior, 768 F.2d 1248 (11th Cir.1985),
cert. denied, 475 U.S. 1011, 106 S.Ct. 1186, 89 L.Ed.2d 302 (1986).
Contra, City of Sault Ste. Marie v. Andrus, 458 F.Supp. 465,
470‑72 (D.D.C.1978). We
doubt whether the Quiet Title Act precludes APA review of agency action by which
the United States acquires title.
But given our conclusion that § 465 is an unconstitutional delegation of
power, we need not decide this issue.
The court in Florida conceded
that the Quiet Title Act does not bar claims "that the Secretary acted
unconstitutionally or beyond his statutory authority when the United States
acquired title to the land." 768 F.2d at 1255 n. 9.
II.
**2
On appeal, plaintiffs argue that § 465 provides no legislative standards or
boundaries governing the Secretary's acquisitions.
The Secretary responds that the statutory purpose of "providing land
for Indians" sufficiently defines the general policy and boundaries of the
delegated power. The Secretary notes that the Supreme Court has not invalidated
a federal statute on delegation grounds since A.L.A. Schechter Poultry Corp. v. United States, 295 U.S. 495, 542,
55 S.Ct. 837, 848, 79 L.Ed. 1570 (1935), and Panama Refining Co. v. Ryan, 293 U.S. 388, 55 S.Ct. 241, 79 L.Ed.
446 (1935). Interestingly,
the same Congress enacted both the Indian Reorganization Act, of which § 465
was a part, and the statutes invalidated in
Schechter Poultry and Panama Refining.
It is appropriate to consider whether § 465 satisfies the nondelegation
doctrine as it has evolved since 1935, particularly because no other appellate
court has done so. [FN2]
FN2. To our knowledge, only one other district court has considered the
nondelegation question in the sixty‑year life of the statute, and its
perfunctory analysis is unpersuasive.
See City of Sault Ste. Marie, 458 F.Supp. at 473.
[1][2][3]
The nondelegation doctrine is easy to state:
"Congress may not constitutionally delegate its legislative power to
another branch of Government."
Touby v. United States, 500 U.S. 160, 165, 111 S.Ct. 1752, 1755, 114
L.Ed.2d 219 (1991) (citation omitted).
It is difficult to apply. A court must inquire whether Congress "has
itself established the standards of legal obligation, thus performing its
essential legislative function."
Schechter Poultry, 295 U.S. at 530, 55 S.Ct. at 843.
But the court must be mindful that the doctrine does not prevent Congress
from obtaining the assistance of its coordinate Branches.
Therefore, so long as Congress "lay[s] down by legislative act an
intelligible principle" governing the exercise of delegated power, it has
not unlawfully delegated its legislative power. J.W. Hampton, Jr., & Co. v. United States, 276 U.S. 394, 409,
48 S.Ct. 348, 352, 72 L.Ed. 624 (1928), quoted in Touby, 500 U.S. at 165, 111 S.Ct. at 1755, and Mistretta v. United States, 488 U.S. 361, 372, 109 S.Ct. 647, 655,
102 L.Ed.2d 714 (1989). A
delegation is overbroad "[o]nly if we could say that there is an absence of
standards for the guidance of the Administrator's action, so that it would be
impossible in a proper proceeding to ascertain whether the will of Congress has
been obeyed." Yakus v. United States, 321 U.S. 414, 426, 64 S.Ct. 660,
668, 88 L.Ed. 834 (1944).
[4]
The Supreme Court has recognized that judicial review is a relevant safeguard in
considering delegation issues:
It is "constitutionally sufficient if Congress clearly delineates
the general policy, the public agency which is to apply it, and the boundaries
of this delegated authority. Private
rights are protected by access to the courts to test the application of the
policy in the light of these legislative declarations."
Skinner v. Mid‑America Pipeline Co.,
490 U.S. 212, 219, 109 S.Ct. 1726, 1731, 104 L.Ed.2d 250 (1989),
quoting American Power & Light Co. v. SEC, 329 U.S. 90, 105, 67 S.Ct.
133, 142, 91 L.Ed. 103 (1946). Justice
Marshall eloquently stated this principle in his concurring opinion in
Touby: "judicial review perfects a delegated‑lawmaking scheme by
assuring that the exercise of such power remains within statutory bounds."
500 U.S. at 170, 111 S.Ct. at 1758.
Thus, when the Secretary argued to the district court that his actions
under § 465 may not be judicially reviewed
because the statute commits them *882
entirely to agency discretion, he implicitly acknowledged that this
delegation issue requires a particularly close look. See United States v. Garfinkel, 29 F.3d 451, 459
(8th Cir.1994) ("[J]udicial review is a factor weighing in favor of
upholding a statute against a nondelegation challenge") (citation omitted).
**3 [5] We begin by examining the very broad language of § 465:
The Secretary of the Interior is hereby
authorized, in his discretion, to acquire ... any interest in lands ... within
or without existing reservations ... for the purpose of providing land for
Indians.
*
* *
* * *
Title
to any lands or rights acquired ... shall be taken in the name of the United
States in trust for the Indian tribe or individual Indian for which the land is
acquired, and such lands or rights shall be exempt from State and local
taxation.
By its literal terms, the statute permits the Secretary to
purchase a factory, an office building, a residential subdivision, or a golf
course in trust for an Indian tribe, thereby removing these properties from
state and local tax rolls. Indeed,
it would permit the Secretary to purchase the Empire State Building in trust for
a tribal chieftain as a wedding present.
There are no perceptible "boundaries," no "intelligible
principles," within the four corners of the statutory language that
constrain this delegated authority‑‑except that the acquisition must
be "for Indians." It
delegates unrestricted power to acquire land from private citizens for the
private use and benefit of Indian tribes or individual Indians.
[6] The Secretary's power to purchase land under § 465
triggers the complementary power to acquire land by condemnation under 40 U.S.C.
§ 257. See United States v. 29 Acres of
Land, 809 F.2d 544, 545 (8th Cir.1987). It is therefore appropriate to
consider the delegation question in the context of the federal government's
extensive condemnation powers.
[7][8][9] The power to acquire land by condemnation for a
public purpose is an inherent aspect of sovereignty. See Kohl v. United
States, 91 U.S. 367, 371‑72, 23 L.Ed. 449 (1875).
In exercising that power, Congress need not select the particular land to
be taken; that function may be
delegated to the Executive Branch.
See Chappell v. United States, 160 U.S. 499, 510, 16 S.Ct. 397, 400,
40 L.Ed. 510 (1896). So long as the condemnation serves a public use,
"the necessity or expediency of appropriating any particular property is
not a subject of judicial cognizance."
Mississippi & Rum River Boom Co. v. Patterson, 98 U.S. 403, 406,
25 L.Ed. 206 (1878). However, "a claim that a taking is not 'for public
use' is open for judicial consideration."
United States ex rel. T.V.A. v. Welch, 327 U.S. 546, 557, 66 S.Ct.
715, 720, 90 L.Ed. 843 (1946) (Frankfurter, J., concurring).
[10][11] It is settled that the United States may purchase
land by condemnation for an Indian reservation as a public use. See United States v.
McGowan, 302 U.S. 535, 58 S.Ct. 286, 82 L.Ed. 410 (1938); State of Minnesota v.
United States, 125 F.2d 636, 640 (8th Cir.1942).
That same power authorizes Congress to acquire non‑reservation
lands in trust for a public use that benefits Indians or Indian tribes.
But the question under the nondelegation doctrine is, for what public use
does § 465 authorize the Secretary to acquire land.
By defining no boundaries to the exercise of this power, the statute
leaves the Secretary free to acquire for a multitude of purposes, for example,
to expand a reservation, [FN3] to provide farm land for rural Indians, to
provide a factory for unemployed urban Indians, to provide a golf course for
tribal recreation, or to provide a lake home for a politically faithful tribal
officer. These are very
different public uses, and the last is, of course, no public use at all.
FN3.
A separate provision of the Indian Reorganization Act specifically authorized
the Secretary to acquire lands to form new reservations or to enlarge existing
reservations. See 25 U.S.C. § 467.
In State of Minnesota, supra,
we upheld a condemnation under a different, far more specific statute after
careful judicial review of the Secretary's decision.
**4
Despite the government's broad, inherent power to acquire land for public use,
the nondelegation doctrine surely requires at a
*883 minimum that Congress, not the Executive, articulate and configure the
underlying public use that justifies an acquisition. In some cases, the public use underlying each
acquisition is obvious, as when Congress authorizes an agency to acquire lands
and buildings to house the agency's operations.
But when Congress authorizes the Secretary to acquire land in trust
"for Indians," it has given the agency no "intelligible
principle," no "boundaries" by which the public use underlying a
particular acquisition may be defined and judicially reviewed. This legislative vacuum in turn greatly expands the
extent of the standardless delegation.
III.
The
legislative history of § 465 suggests that Congress did not intend to delegate
unrestricted power to acquire land "for Indians."
The statute was enacted as section 5 of the Indian Reorganization Act of
1934, 48 Stat. 985. The Report of the Committee on Indian Affairs stated:
The bill now under consideration definitely puts an end to the allotment
system through the operation of which the Indians have parted with 90,000,000
acres of their land in the last 50 years....
To make many of the now pauperized, landless Indians
self‑supporting, it authorizes a long term program of purchasing land for
them.
* * *
* *
*
Section 5 authorizes the Secretary of the
Interior to purchase or otherwise acquire land for landless Indians.
The
title to land thus acquired will remain in the United States.
The Secretary may permit the use and occupancy of this newly acquired
land by landless Indians; he may
loan them money for improvements and cultivation, but the continued occupancy of
this land will depend on its beneficial use by the Indian occupant and his
heirs.
H.R.Rep. No. 1804, 73d Cong., 2d Sess. 6‑7 (1934).
In the House floor debate, Representative Howard, a chief sponsor of the
bill, further explained the purpose of section 5:
Section
5 sets up a land acquisition program to provide land for Indians who have no
land or insufficient land, and who can use land beneficially....
This program would permit the purchase of land for many bands and groups
of landless Indians and would permit progress toward the consolidation of badly
checkerboarded Indian reservations, as well as provide additional agricultural
land to supplement stock grazing or forestry operations.
78 Cong.Rec. 11730 (June 15, 1934). Representative Howard characterized the acquisition of
trust lands to be used for farming as "the keystone of the new Indian
policy." 78 Cong.Rec. 11729.
Representative Hastings described the land to be acquired as "Indian
subsistence‑homesteads."
Id. at 9269.
[12] This agrarian focus is not surprising in a Congress
acting against the backdrop of an industrial sector ravaged by the Great
Depression. Yet in drafting
§ 465, Congress failed to include standards to reflect its limited purpose.
Instead, the Secretary was delegated unrestricted power to acquire land
"for Indians" in a statute that contained no "boundaries"
defining how that power should be exercised.
The Secretary has responded by asserting all of the unlimited power
conferred by the statute's literal language.
First, he promulgated regulations that place no restrictions on the
purpose for which land may be placed in trust "for Indians."
See 25 C.F.R. § 151.10. Second, when his acquisition procedures and
decisions were challenged in court, he asserted that his exercise of this power
is not subject to judicial review under the APA because it is "committed to
agency discretion."
**5
This case illustrates the problems created by the exercise of such unrestricted
power. Intending only that
the Secretary acquire rural lands suitable for farming, grazing, and logging by
Indians, Congress in § 465 addressed only one intergovernmental
issue‑‑it made the lands taken in trust exempt from state and local
property taxes. But when the Secretary acquires urban land for
industrial or commercial uses, other important issues inevitably arise.
For example, the South Dakota Attorney General asked the Secretary
whether the City of Oacoma's ordinances, including its zoning ordinances, would
be enforceable against the property if
*884 it was taken in trust. The
Secretary's Field Solicitor responded:
If
the parcel is not declared to be part of the reservation, then ordinances which
are civil or regulatory in nature and which do not affect the proprietary
interest of the United States, acquired by virtue of acquisition of title to the
land, may apply. See State of
Florida, supra; Mescalero Apache
Tribe v. Jones, [411 U.S. 145, 93 S.Ct. 1267, 36 L.Ed.2d 114 (1973) ].
(Emphasis added.) This
answer suggests that the BIA will force the State and the City to establish
their right to regulate the trust land in court, where BIA will no doubt argue
that state and local regulatory powers are preempted. The result is a
legislative void. Congress,
not the BIA, and indeed not the courts, should define in the first instance the
extent to which lands taken in trust for industrial and commercial Indian use
are thereby freed from state and local zoning ordinances, building codes, health
and safety regulations, and other exercises of the police power.
Had the Secretary acted consistently with § 465's legislative
history‑‑by limiting his acquisition authority to purposes such as
forming or enlarging reservations, restoring alienated allotment lands, and
providing other lands for agrarian uses‑‑we would face the question
whether the statute's overbreadth was suitably slimmed by this legislative
history and agency interpretation. Normally, delegation questions are considered
in light of a statute's legislative history and context,
see Garfinkel, 29 F.3d at 458, and any narrowing agency interpretation,
see International Union, UAW v. OSHA, 938 F.2d 1310 (D.C.Cir.1991);
37 F.3d 665 (D.C.Cir.1994) (decision after remand).
But in this case, the agency has interpreted the statute as broadly as
possible, consistent with its literal language. We have approved that interpretation in another context
and as a panel may not overrule a prior panel opinion. See Chase v.
McMasters, 573 F.2d 1011, 1015‑16 (8th Cir.1978),
cert. denied, 439 U.S. 965, 99 S.Ct. 453, 58 L.Ed.2d 423 (1978).
Moreover, if we now took a more limited view of the statute, the
Secretary's regulations would be overbroad, and there would be no basis upon
which to uphold this acquisition. Thus,
we conclude that we must accept the agency's interpretation and construe the
statute literally for purposes of applying the nondelegation doctrine.
IV.
**6
[13] There are additional, procedural aspects of the Secretary's acquisition
program that further support our decision.
The administrative record reveals that the Tribe purchased the land in
question for $80,255.94, three months
after it filed the § 465 application, and after the BIA's Lower Brule
Agency had recommended favorable action on the application.
The record does not disclose (i) whether the purchase price was based
upon tax free commercial use by the Tribe, and (ii) the price the United States
paid when it acquired the land from the Tribe in November 1992.
Plaintiffs criticize the administrative record as contrived and
inadequate. The Secretary
argues that procurement practices of the Tribe and BIA under § 465 are not
subject to judicial review.
There are many opportunities for abuse in a program of this
nature. For example, a seller
who knows that land is being sold for a tax free use will charge more for that
land, thereby capturing some of the economic benefit of tax free status that
Congress intended for the Indians. Here,
if the Tribe paid such a monopoly rent, the congressional purpose has been
frustrated. But if the
Secretary reimbursed the Tribe for that purchase price, the taxpayers have
suffered from agency ignorance or misfeasance.
Given the extensive standards that Congress has built into other
procurement programs, see, e.g., 10
U.S.C. Ch. 159; 41 U.S.C. §§
251‑260, the total absence of procurement principles and safeguards in §
465 violates the nondelegation doctrine.
V.
Those who drafted § 465 failed to incorporate the limited
purpose reflected in the legislative history.
Presumably, they either drafted poorly or ignored the delegation issue.
The agency that received this inartful delegation then used the absence
of statutory controls to claim unrestricted, unreviewable
*885 power. The result is
an agency fiefdom whose boundaries were never established by Congress, and whose
exercise of unrestrained power is free of judicial review. It is hard to imagine a program more at odds with
separation of powers principles.
[14] In his concurring opinion in Industrial Union Dept., AFL‑CIO v. American Petroleum Inst.,
448 U.S. 607, 685‑86, 100 S.Ct. 2844, 2886, 65 L.Ed.2d 1010 (1980),
Justice (now Chief Justice) Rehnquist summarized the functions of the
nondelegation doctrine as articulated in prior Supreme Court cases:
First,
and most abstractly, it ensures to the extent consistent with orderly
governmental administration that important choices of social policy are made by
Congress, the branch of our Government most responsive to the popular will.
Second, the doctrine guarantees that, to the extent Congress finds it necessary
to delegate authority, it provides the recipient of that authority with an
"intelligible principle" to guide the exercise of the delegated
discretion. Third, and derivative of the second, the doctrine ensures that
courts charged with reviewing the exercise of delegated discretion will be able
to test that exercise against ascertainable standards.
**7
(Citations omitted.) We
conclude that § 465 fails all three of these nondelegation criteria and is
invalid. Accordingly, the
Secretary had no authority to acquire the lands in question in trust for the
Tribe. The judgment of the
district court is reversed and the case is remanded for further proceedings
consistent with this opinion.
MURPHY, Circuit Judge, dissenting.
The court in this case unnecessarily reaches a constitutional
issue and bases its conclusions on speculation rather than the record.
Its decision that a portion of the Indian Reorganization Act of 1934, 25
U.S.C. § 465, is an unconstitutional delegation of legislative power is not
supported by the statute or its legislative history.
The court invalidates today a congressional enactment designed to acquire
land in trust for Indians that has been in place for over sixty years and, in
the process, places in doubt the status of all Indian trust land.
I must therefore dissent.
I.
The primary focus of the appeal taken by the State of South
Dakota and the City of Oacoma (plaintiffs) is the district court's dismissal for
lack of jurisdiction of their claims brought under the Administrative Procedure
Act (APA), 5 U.S.C. § 701‑706.
The Department of the Interior and the two individually named defendants
(collectively, the Secretary) had argued on their motion to dismiss that
judicial review of the APA claims is unavailable because the decision whether to
acquire land in trust is committed to agency discretion.
Plaintiffs disagreed and also challenged the constitutionality of the
statute authorizing land to be taken into trust, § 465 of the Indian
Reorganization Act. The
district court found the statute to be constitutional and did not reach the
issue of the availability of judicial review.
Instead it concluded sua sponte that it lacked jurisdiction over the APA
claims because the United States has not waived its sovereign immunity for
claims relating to Indian trust land.
Rather then addressing the jurisdictional issue, the majority
stretches to consider the constitutionality of the underlying statute.
A cardinal principle guiding federal courts is that constitutional issues
should not be reached unless necessary to a decision. Jean v. Nelson, 472 U.S. 846, 854, 105 S.Ct. 2992,
2996‑97, 86 L.Ed.2d 664 (1985).
This is a "fundamental rule of judicial restraint." Three Affiliated Tribes of
Fort Berthold Reservation v. Wold Engineering, 467 U.S. 138, 157, 104 S.Ct.
2267, 2279, 81 L.Ed.2d 113 (1984). The
court suggests, but does not decide, that the district court had jurisdiction to
consider the claims brought under the APA. If so, the principle of judicial
restraint should lead to consideration of those claims prior to reaching any
constitutional issue. Resolution
of the constitutional question would not be required if the merits of the APA
claims were to be determined in favor of the plaintiffs.
Moreover, resolution of the APA inquiry could inform the
analysis of the delegation issue since the availability of judicial review of an
agency action is relevant in determining
*886 whether the authorizing statute is a lawful delegation. See United States v.
Garfinkel, 29 F.3d 451, 459 (8th Cir.1994).
Although the court recognizes this principle, it relies on the
Secretary's mere assertion that his decision is unreviewable to support its
conclusion that the delegation is unlawful.
II.
**8
Even if the court had reason to address the delegation issue at this time, its
decision strays far from the existing path of nondelegation doctrine. Congressional delegations of legislative power are
valid "if Congress clearly delineates the general policy, the public agency
which is to apply it, and the boundaries of this delegated authority."
Mistretta v. United States, 488 U.S. 361, 372‑73, 109 S.Ct.
647, 655, 102 L.Ed.2d 714 (1989)
(quoting American Power & Light Co. v.
SEC, 329 U.S. 90, 105, 67 S.Ct. 133, 142, 91 L.Ed. 103 (1946)).
To assess whether a statute imposes sufficient boundaries on the
delegated authority, a reviewing court looks at the language of the statute, its
purpose and factual background, and the statutory context in which the standards
appear. United States v. Garfinkel,
29 F.3d 451, 458 (8th Cir.1994) (citing
American Power & Light Co. v. SEC, 329 U.S. 90, 104, 67 S.Ct. 133,
141‑42, 91 L.Ed. 103 (1946)). A
statute written in broad terms does not violate the Constitution so long as
Congress lays down an "intelligible principle" to guide the agency's
discretion. Touby v. United States, 500 U.S. 160, 165, 111 S.Ct.
1752, 1755‑56, 114 L.Ed.2d 219 (1991);
Garfinkel, 29 F.3d at 457.
Only twice in its history, and not since 1935, has the Supreme
Court invalidated a statute on the ground of excessive delegation of legislative
authority. Since 1935, the
Supreme Court has consistently upheld statutes involving broad delegations of
authority. See e.g., Mistretta v. United States, 488 U.S. 361,
372‑73, 109 S.Ct. 647, 654‑55, 102 L.Ed.2d 714 (1989) (authority to
promulgate sentencing guidelines for federal criminal offenses); Lichter v. United States,
334 U.S. 742, 785‑86, 68 S.Ct. 1294, 1316‑17, 92 L.Ed. 1694 (1948)
(authority to determine excessive profits);
American Power & Light Co. v. SEC, 329 U.S. 90, 67 S.Ct. 133, 91 L.Ed.
103 (1946) (authority to prevent
unfair or inequitable distribution of voting power among security holders);
Yakus v. United States, 321 U.S. 414, 64 S.Ct. 660, 88 L.Ed. 834
(1944) (authority to fix commodity prices that would be fair and equitable and
would effectuate purpose of Emergency Price Control Act of 1942);
FPC v. Hope Natural Gas Co., 320 U.S. 591, 600, 64 S.Ct. 281,
286‑ 87, 88 L.Ed. 333 (1944) (authority to determine just and reasonable
rates); National Broadcasting Co. v.
United States, 319 U.S. 190, 225‑26, 63 S.Ct. 997, 1013, 87 L.Ed. 1344
(1943) (authority to regulate broadcast licensing for "public interest,
convenience, or necessity"). The
delegation doctrine has in fact evolved into a tool of statutory construction,
by which reviewing courts give "narrow constructions to statutory
delegations that might otherwise be thought to be unconstitutional." See Mistretta,
488 U.S. at 373 n. 7, 109 S.Ct. at 655 n. 7.
Although the court notes that the same Congress passed the Indian Reorganization Act and the statutory provisions found unconstitutional in 1935 on delegation grounds, it does not attend to the striking differences between the statutes. The National Industrial Recovery Act (NIRA), 48 Stat. 195 (1933), [FN1] contained the unconstitutional provisions struck down in A.L.A. Schechter Poultry Corp. v. United States, 295 U.S. 495, 531, 55 S.Ct. 837, 843‑44, 79 L.Ed. 1570 (1935) (provision authorizing the President to approve codes of fair competition for a trade or industry) and Panama Refining Co. v. Ryan, 293 U.S. 388, 406, 55 S.Ct. 241, 242, 79 L.Ed. 446 (1935) (provision granting the President discretion to prohibit interstate and foreign commerce of certain petroleum products). The NIRA represented the Roosevelt administration's response to a national emergency caused by widespread unemployment and economic disruption during the Depression. See 48 Stat. 195, Title I, section 1