A Blueprint for Tribal Economic Sovereignty

1. Introduction: What is TERO and Why Does it Exist?

The Tribal Employment Rights Ordinance (TERO), codified as Title 5, Chapter 1 of the Hannahville Indian Community Tribal Code, is more than a labor policy. It holds greater significance. It is a regulatory exercise of tribal jurisdiction. TERO provides the legal foundation. It ensures that economic activities within the Tribe’s territory prioritize the prosperity of the tribal community. These activities may be conducted by tribal entities or outside contractors.

According to Section 5.1.101, the ordinance serves a dual purpose by balancing human-centric social outcomes with performance-driven economic objectives:

Social Benefits	Economic Goals
Community Well-being: Enhances the health and safety of tribal members and their families through stable employment.	Optimized Workforce: Ensures tribal programs and enterprises are staffed by individuals “best suited” for their specific roles.
Generational Stability: Promotes the long-term welfare and economic security of tribal descendants and other Indians.	Market Advantage: Maximizes the tangible benefits of tribal membership by providing a competitive edge in the local labor market.
Fiduciary Duty: Fulfills the Tribal Council’s unique responsibility toward the well-being of the Hannahville membership.	Strategic Priority: Grants the highest priority in employment for all governmental activities and tribal enterprises.

TERO is a fundamental manifestation of tribal sovereignty. It moves beyond simple hiring rules to act as a tool for self-governance. The Hannahville Indian Community asserts the right to regulate the labor market on tribal lands. This ensures that its resources and economic growth are leveraged. They aim to secure the community’s future.

This regulatory framework creates a path for qualified individuals to access opportunities. It shifts focus from the “why” of the law to the specific “who” it is designed to protect.

——————————————————————————–

2. The Priority Ladder: Who Benefits from TERO?

To ensure economic benefits are distributed according to tribal interests, TERO establishes a strict hierarchy. Under Section 5.1.105, employers must apply preference in the following descending order:

1. Enrolled Hannahville Members: Individuals officially listed on the membership roll of the Hannahville Indian Community.
2. Married Indian Spouses: Qualified Indians legally married to an enrolled Hannahville member.
3. Hannahville Descendants: Qualified descendants of enrolled members eligible for federal Indian services (BIA/IHS).
   • Note: Tiers 1–3 represent the primary local priority groups.
4. Other Enrolled Indians: Qualified members of any other federally recognized Indian tribe.
5. Other Indian Descendants: Qualified descendants of members of other tribes eligible for federal Indian services.
6. Michigan State-Recognized Tribes: Qualified members of tribes recognized by the State of Michigan but not by the federal government.
7. Non-Indians: Qualified individuals not falling into the above categories.

Legal Definition of “Indian”: It includes members of federally recognized tribes. It also includes Alaska Natives with one-fourth degree or more Alaska Native blood. They must be descended from someone on the roll prepared pursuant to the Alaska Native Claims Settlement Act of 1971.

Key Insight: Indian-Owned Enterprises and B2B Preference Sovereignty extends to the marketplace. Under Sections 5.1.102(2) and 5.1.103(3), TERO applies to contracting and subcontracting. A business qualifies as an “Indian-Owned Enterprise” if it is at least 51% owned by one or more Indians or a tribe. Indian owners must be involved in daily business management. For-profit entities must also ensure the majority of earnings accrue to the Indian owners.

While these preferences are robust, they are triggered only when specific legal and geographic conditions are met.

——————————————————————————–

3. Scope and Applicability: Where the Rules Apply

TERO is a contractual mandate. Section 5.1.102 dictates that compliance is not optional for entities doing business with the Tribe. The ordinance is triggered by three factors:

• Location of Work: Any activity on tribal trust lands, tribal fee-owned lands, or roads providing access to tribal lands.
• Source of Funding: Projects involving tribal funds, federal funds allocated for the Tribe, or federal “pass-through” funds from state grants.
• Nature of the Entity:
  • All tribal agencies, enterprises, and programs.
  • Major contractors and subcontractors whose work directly benefits the Tribe.

Critical Constraints and Federal Conflicts Section 5.1.102(3) clarifies that tribal preference cannot violate the Tribal Constitution or the Community’s Drug and Alcohol Policy. Furthermore, if a federal funding source mandates “Indian Preference” (general) over “Tribal Preference” (Hannahville-specific), federal law takes precedence. However, in such cases, TERO requires targeted recruitment efforts. These efforts must focus on eligible persons living on or near the Hannahville Indian Community tribal lands.

This scope ensures that tribal and federal dollars remain as close to the community as possible. This approach leads to the practical mechanics of the hiring process.

——————————————————————————–

4. The Hiring Process: “Qualified” Status and Posting Rules

The ordinance balances preference with the need for competency. Sections 5.1.103 and 5.1.104 define the standards for entry:

• “Qualified” (Minimum Requirements): The applicant must possess the basic skills necessary to perform the job. The source (5.1.104(2)(a)) specifies that these include concrete metrics such as professional credentialing, licensing, certifications, computer skills, and words per minute typed.
• Desirable Qualifications: These are beneficial skills that are not essential on day one. These may include skills that can be acquired through on-the-job training. Employers define a reasonable time frame for this before posting.
• 5-Day Minimum: All positions must be posted for at least five working days.
• Criminal Checks: Mandatory for roles involving tribal gaming or regular contact with/control over Indian children.
• Disqualification: Standards for criminal history are strictly applied per federal, tribal, and state law.

The Preference Disclaimer Section 5.1.106 provides a crucial caveat: Preference is a “significant factor” but not a guarantee. It does not protect a preferred employee from termination for poor performance. It also does not require hiring an individual based solely on status if they lack qualifications. They must meet the necessary qualifications.

——————————————————————————–

5. Accountability: Rights of the Applicant and Tribal Oversight

TERO maintains high stakes for compliance through rigorous checks and balances. If an employer bypasses a qualified, preferred applicant, they must justify the decision.

The Non-Preference Statement (Section 5.1.107): If a hiring decision is made contrary to preference, the responsible person or committee must prepare a written justification within three working days. This statement must be signed by all committee members who participated in the decision and filed with the Tribal Chairperson.

Request for Administrative Review (Section 5.1.108): An applicant who believes their rights were violated may seek recourse:

1. Written Request: Submitted to Human Resources within 5 working days of the decision, including proof of preference status.
2. HR Referral: HR must forward the request to the Tribal Chairperson within 5 working days.
3. Tribal Council Hearing: Conducted on the record within 20 working days. All parties present evidence and testimony.
4. Final Decision: The Tribal Council issues findings based on fact and law. This decision is final and represents the Tribe’s ultimate authority over its labor market.

Corrective Action: If the Council determines the ordinance was “inappropriately disregarded,” it can take action. The Council should impose corrective actions on the individuals or committees responsible.

——————————————————————————–

6. Synthesis: TERO’s Impact on the Local Labor Market

TERO is the mechanism that aligns the Tribe’s economic power with its social responsibilities. It ensures that the Hannahville Indian Community is not a passive participant in the local economy, but its primary architect.

3 Essential Takeaways for the Aspiring Learner

• Regulatory Sovereignty: TERO is mandated by law. It applies to all tribal entities and major contractors. This mandate asserts tribal control over land and capital.
• Local Economic Protection: The law requires recruitment to target those “on or near” tribal lands. This is true even under federal constraints. It prevents the outward flight of economic benefits.
• Administrative Finality: The Tribal Council holds the final word on employment disputes under TERO. This ensures that tribal law dictates the standards of the community’s workforce, not outside influence.

TERO ensures that tribal resources directly benefit the tribal community. These resources include land, money, or contracts. The goal is to secure the community’s future by empowering its workforce.

---

---