Chapter 3.24R INDIAN PREFERENCE REGULATIONS

The right to tax business activities on Tribal and trust lands within the exterior boundaries of the Puyallup Indian Reservation and on Tribally owned lands outside those boundaries is an important resource of the Puyallup Tribe of Indians.

Federal legislation enables the Puyallup Tribal Council to pass laws to implement and enforce this right for the welfare of the members of the Puyallup Tribe of Indians and other Indians.

Puyallup Tribal members and other Indians are entitled to the protection of the unique and special employment rights enacted by the federal government. Tribal government can and should participate in the enforcement of those laws. The Puyallup Tribe believes it important to establish an employment rights program and office to use these laws to increase employment of Puyallup Tribal members and other Indian workers and to eradicate discrimination against all Indians. [Res. 260325 (03/26/25); Res. 280324A (03/28/24)]

3.24R.020 Exemptions.

(a) Upon Tribal Council’s determination that it is in the best interest of the Puyallup Tribe for certain contracts or employers to be exempt, Tribal Council may by resolution exempt certain contracts or employers from application of this chapter for leases, activities and operations occurring on the Tribal lands; provided, that there is an approved process consistent with the goals of increasing employment through a hiring preference as provided within the TERO Ordinance and these regulations.

(b) Tribal programs or divisions other than commercial enterprises shall not be required to comply with this chapter but shall, when submitting a contract to the Tribal Council for approval, indicate as part of the submission to the Council the steps taken to award the contract to a local Indian contractor. [Res. 260325 (03/26/25); Res. 280324A (03/28/24)]

3.24R.030 Purpose.

The following regulations are issued pursuant to the authority granted to the Puyallup Tribe of Indians Employment Rights Office (hereinafter “TERO”) by the Puyallup Tribe of Indians Employment Rights Ordinance (Chapter 3.24 PTC), which requires Tribal preference in the hiring, training and all aspects of employment of Indians and Indian-owned businesses by all contract-awarding entities and employers operating on Tribal lands as described herein and defined below (PTC 3.24R.050(j)). [Res. 260325 (03/26/25); Res. 280324A (03/28/24); Res. 061293 (12/06/93) § 1.1. Formerly 3.24R.010]

3.24R.040 Dissemination.

The obligation of all employers to comply with Tribal employment rights requirements shall be made known to all existing and future employers. All bid announcements issued by any Tribal, federal, state or other private or public entity shall contain a statement or notice to contractors that the successful bidder shall comply with TERO laws and regulations and that a bidder may contact the TERO to obtain additional information. Those Tribal and other offices responsible for issuing business permits for the Tribe or otherwise engaged in activities involving contact with prospective employers on Tribal lands shall be responsible for informing such prospective employers of these regulations. [Res. 260325 (03/26/25); Res. 280324A (03/28/24); Res. 061293 (12/06/93) § 1.2. Formerly 3.24R.020]

3.24R.050 Definitions.

Words of this chapter shall have the meaning given them in this section unless the context clearly indicates another meaning. If the meaning of a word is not clear, it shall be construed in harmony with the purposes of this title. For purposes of these regulations and the accompanying ordinance, the following terms and definitions shall apply:

(a) “Committee” means the Puyallup Tribal Employment Rights Advisory Committee established by Chapter 3.24 PTC.

(b) “Covered employer” means any employer employing two or more employees who, during any 20-day period, work, cumulatively, 16 or more hours work on trust lands within the jurisdiction of the Puyallup Tribe or its Tribal lands.

(d) “Employee” means any person employed by a covered employer for financial compensation.

(e) “Employer” means any person or entity that hires two or more employees.

(f) “Entity” or “entities” means any person, partnership, corporation, joint venture, association, government, governmental enterprise or any other natural or artificial person, including Tribal departments, programs and or its divisions. The term “entity” is intended to be as broad and encompassing as possible to ensure the coverage of this chapter over all employment and contract activities within the Tribe’s jurisdiction and the term shall be so interpreted by the Tribe and Courts.

(g) “Indian” means any enrolled member of a federally recognized Tribe.

(h) “Local Indian” means an enrolled Puyallup Tribal member or any member of a federally recognized tribe who resides within the jurisdiction of the Puyallup Tribe or its Tribal lands.

(i) “TERO” means the Puyallup Tribal Employment Rights Office.

(j) “Tribal lands,” for purposes of this chapter, means any land within the jurisdiction of the Puyallup Tribe of Indians including any Tribally owned land both within and outside of the 1873 Survey Area. Additional areas may be included as provided in an intergovernmental agreement authorizing and outlining compliance in areas other than those listed above. [Res. 260325 (03/26/25); Res. 280324A (03/28/24); Res. 061293 (12/06/93) § 1.3. Formerly 3.24R.030]

3.24R.060 Coverage.

(a) Employment. These regulations shall apply to all covered employers. They shall not apply to direct employees of the Puyallup Indian Tribe, the federal government, the Washington State government, the subdivisions of such government, individual Tribal members or Tribal member-owned businesses. These regulations shall apply to all contractors or grantees of such governments and to all commercial enterprises and entities operated by such governments.

(b) Contracting and Subcontracting. These regulations shall apply to all covered employers. They shall not apply to direct employees of the Puyallup Indian Tribe, the federal government, the Washington State government, the subdivisions of such government, individual Tribal members or Tribal member-owned businesses. These regulations shall apply to all contractors or grantees of such governments and to all commercial enterprises and entities operated by such governments.

(1) The contract and subcontract preference requirements of these regulations shall apply to an entity awarding one or more contracts and/or subcontract(s) for supplies, services, labor or materials within Tribal lands.

(2) The subcontracts awarded by entities which have received contracts from the Tribe or federal government are subject to these regulations.

(3) A contract awarded by a commercial enterprise of the Puyallup Indian Tribe is also subject to these regulations.

(c) Employment Rights Fee. An employment rights fee of two and one-half percent of the contract amount shall be assessed against any covered employers. [Res. 260325 (03/26/25); Res. 280324A (03/28/24); Res. 061293 (12/06/93) § 1.4. Formerly 3.24R.040]

3.24R.070 Submission of compliance plans.

Each covered employer intending to engage in business activity on Tribal lands, 21 days prior to the day it commences work, shall submit a completed compliance plan to the TERO. No new employer or entity shall commence work on Tribal lands until it has met with the TERO and developed an acceptable plan for implementing its obligations under these regulations.

(a) Employment and Training Plan. The employment and training plan shall show the number of man-hours, by craft and skill category, anticipated to complete the contract or project. The employer shall identify those persons to be approved as permanent and key employees and shall provide sufficient data or reports to verify the status of those employees.

(1) The plan shall also describe how the employer intends to participate in the Tribe’s training programs.

(b) Contracting and Subcontracting Plan. The contracting and subcontracting plan shall indicate all contracts and subcontracts that will be entered into by a covered employer and the projected dollar amounts thereof.

If the covered employer has awarded a contract or subcontract work, it shall list the name of that business and indicate whether it is a business certified by the TERO as Indian preference-eligible. If the business has not been certified, the entity shall further indicate why a technically qualified certified business registered with the TERO, if any, was not selected. The plan shall also indicate how the covered employer intends to comply with Subchapter 3 of this chapter when awarding all contracts and subcontracts not yet awarded at the time the plan is submitted. The awarding covered employer assumes all responsibility for ensuring their subcontractors are compliant with the TERO. [Res. 260325 (03/26/25); Res. 280324A (03/28/24); Res. 061293 (12/06/93) § 1.5. Formerly 3.24R.050]

Subchapter 2. Indian Preference in Employment and Training

3.24R.080 Hiring.

(a) Tribal Hiring Hall. The covered employer may not employ a nonlocal Indian or a non-Indian until the TERO is given a minimum of 48 hours’ notice to locate and refer a qualified local Indian. In those instances where a worker is needed in less than 48 hours, the employer may request this requirement be waived. Such waiver shall be granted, provided the employer can demonstrate that a need exists.

(b) For purposes of Indian preference for these regulations and the accompanying ordinance, preference shall be given in the following order for all opportunities as listed and described below:

(1) Puyallup Tribal member.

(2) Other local Indians and spouses of or guardians of a Puyallup Tribal member.

(3) Nonlocal Indian.

(4) Others.

(c) A best faith effort shall be made to locate, refer and hire in the preference order as listed above; provided, that where not prohibited by federal law, first preference shall be given to members of the Puyallup Tribe, then if no qualified Puyallup Tribal members, second preference will be given to other local Indians along with spouses of or guardians of a Puyallup Tribal member. If none are available, third preference will be given to nonlocal Indians and finally others. If no client is available for dispatch through the TERO and the contractor or subcontractor has an existing employee who is registered with the TERO Office as a client, the contractor or subcontractor shall make effort to transfer said employee to the covered project.

(d) An employer may request, transfer, recruit and hire workers from whatever sources available and by whatever process chosen; provided the covered employer has met their obligations under these regulations and accompanying ordinance or TERO has given authorization to do so should a position or dispatch request be unfillable.

(e) Permanent and Key Employees. Prior to commencing work on Tribal lands, a prospective employer and all subcontractors shall identify key and permanent employees. Such employees may be employed on the project whether or not they are local Indians. A “permanent employee” is defined as an owner of the business. A “key employee” means a top supervisory employee or an employee who performs a critical function such that an employer would risk likely financial damage or loss if that task were assigned to a person unknown to the employer. The fact that an employee had worked for the employer on previous projects shall not qualify that employee as a key or permanent employee. Length of employment of the employee does not automatically define that employee as key.

(f) Exceptions for regular employees may be granted by the TERO Director, Officer or Dispatcher on a case-by-case basis when TERO has determined that no eligible TERO client is available to fill the position.

(g) Upon approval by the TERO of each key employee or permanent employee requested by the employer, the TERO shall issue a permit to that employee.

(h) Work Permits.

(1) No person who is not a Puyallup Tribal member, local Indian or Indian as defined shall be employed by a covered employer until he or she has obtained a work permit from the TERO.

(2) Work permits shall be granted under the following circumstances:

(A) To all key and permanent employees listed in the employer’s preference plan who are certified by the TERO Director, Officer or Dispatcher as meeting the criteria for key and permanent employees.

(B) To non-Indians hired after the employer has asked the TERO to locate and refer a qualified Tribal member or local Indian and the TERO has been unable to do so within the time provided by these regulations. When the TERO has been unable to locate and refer a local Indian within the time provided, the employer may request, and the TERO may issue, a work permit for the position at issue. At no time will the TERO delay the permit process unnecessarily, or deny a permit without a written justification.

(C) To a person requested by the employer to fill an existing position on a temporary need should an existing employee be unavailable, who is verified by the TERO Director, Officer or Dispatcher as meeting the criteria for said position.

(D) To all owners upon verification that the person is the legitimate owner of the relevant business.

(E) To such other persons that the TERO determines are entitled to a permit.

(i) Sanctions. Any individual found to be employed by a covered employer who does not have a valid work permit shall be summarily removed from the job and the employer shall be subject to such additional sanctions as the TERO may reasonably impose. In imposing sanctions under this section, the TERO shall consider the following factors:

(1) Was the violation intentional?

(2) Did the employer act quickly to remove the employee in question?

(3) Whether the employer had been cited for work permit violations in the past?

(4) Has the employer had similar issues while working with other TEROs or Tribes?

(5) Has the employer been sanctioned prior by other TEROs or Tribes and to what extent?

(j) Termination. No Tribal member or local Indian worker shall be terminated prior to the completion of the work that they were hired for without cause. In the event of a layoff covered employer must take steps to retain required percentage as agreed in TERO plan of the TERO qualified workers in the same order of preference as required under subsections (b)(1) through (b)(4) of this section.

(1) Should a covered employer lay off by crews, qualified local Indians shall be transferred to crews that will be retained; provided there are nonlocal Indians or non-Indians in the same craft employed on the crews that are to be retained.

(k) Unions. Any covered employer who has a collective bargaining agreement with one or more unions that are signatory to the Puyallup Tribal Labor Agreement shall comply with the Tribal Labor Agreement, including Indian preference laws, rules, regulations, and guidelines of the Puyallup Tribe of Indians. Any covered employer who has a collective bargaining agreement with one or more unions that is not signatory to the Tribal Labor Agreement shall obtain written agreement from such union(s) stating that the union shall comply with Indian preference laws, rules, regulations, and guidelines of the Puyallup Tribe of Indians. Although union membership is not a requirement of Indian preference employees, the Puyallup Tribe agrees to allow union representatives and business agents to demonstrate the benefits of union membership to all local and nonlocal Indians. Unions and their representatives may not at any time, either directly or indirectly, harass, coerce or threaten any Indian to join a union or one who chooses to not become a union member.

(l) If TERO does not have a qualified client available, TERO shall contact the appropriate union to identify a qualified local or nonlocal Indian worker. Should the union identify such a worker, he or she shall be referred through both the union hiring hall and the TERO to the job site. If the identified local or nonlocal Indian is not registered with Puyallup TERO, they must first meet the criteria and register before being dispatched.

Covered employer must not accept referrals from a union until TERO has indicated that no qualified client is available and has stated they may proceed with dispatching a non-Indian. The non-Indian must obtain a work permit through TERO before reporting to jobsite.

(m) If a TERO client needs to be processed by the union hiring hall, and the client is unable to travel to the hiring hall, such processing shall be done either on Tribal lands, by telephone, mail or electronically through email or virtual meeting.

(n) Any TERO client who does not wish to become a member of the union shall be granted a temporary work permit for the duration of the project. Said worker shall collect fringe benefits paid directly into their wage. An apprentice position shall be filled with an apprentice level or entry level TERO client, and shall be or become a member of said union through direct entry. A union member TERO client must remain a union member, unless it is determined to be a short-term project, whereas the client has the right to opt out for that project. That opt-out is project specific and is not to be carried over to another project even if said project is with the same employer. [Res. 260325 (03/26/25); Res. 280324A (03/28/24); Res. 061293 (12/06/93) § 2.1. Formerly 3.24R.060]

3.24R.090 Training.

Upon the request of TERO, all employers shall participate in training programs to assist TERO participants become qualified in the various job classifications used by the employer. The parties recognize the necessity for specialized training and agree to indenture qualified Indian apprentice candidates in Washington State certified apprenticeship programs, including but not limited to registered Tribal apprenticeship programs. Union-sponsored apprenticeship programs shall allow direct entry of qualified Indian apprentice candidates. Minimum apprenticeship standards and ratios shall be established for the hiring of Indian preference apprentices for the project. Employers engaged in construction shall participate in the Tribe’s training programs or a union apprenticeship program. All trainees or apprentices shall be local Indians followed by nonlocal Indians as provided in the order in PTC 3.24R.080(b). If an employer is not participating in a union apprenticeship program, the Tribe shall make a best effort to bear the costs of such training or apprenticeship programs. Employers with collective bargaining agreements with unions may use union apprenticeship programs, provided they obtain agreement from the unions to hire Indian apprentices on the project. [Res. 260325 (03/26/25); Res. 280324A (03/28/24); Res. 061293 (12/06/93) § 2.2. Formerly 3.24R.070]

3.24R.100 Job qualification or personnel requirements.

An employer may not use job qualification criteria or personnel requirements which are not required by business necessity to serve as barriers to the employment of Indians. The burden shall be on the employer to demonstrate that the criterion or personnel requirement is required by business necessity and meets Bona Fide Occupational Qualification criteria as determined by EEOC. The employer shall eliminate the criterion or personnel requirement at issue if it is unable to show such business necessity. [Res. 260325 (03/26/25); Res. 280324A (03/28/24); Res. 061293 (12/06/93) § 2.3. Formerly 3.24R.080]

3.24R.110 Religious accommodations.

(a) Employers shall make reasonable accommodation for the religious beliefs of Indian workers.

(b) In implementing these requirements, the TERO shall be guided by the principles established by the EEOC Guidelines, particularly 29 CFR Parts 1604 through 1607. However, the TERO shall have the right to go beyond the EEOC principles in order to address employment barriers unique to Indians in regard to religious and cultural beliefs and practices.

(c) Where the TERO and the employer are unable to reach agreement on matters covered in this section, a review shall be conducted, as provided for in these regulations. The TERO Director shall make a determination on the issues and shall order such actions as Director deems necessary to bring the employer into compliance with this section. The employer may request review of the decision of the TERO Director under the procedures provided for in Subchapter 6 of this chapter. [Res. 260325 (03/26/25); Res. 280324A (03/28/24); Res. 061293 (12/06/93) § 2.35. Formerly 3.24R.090]

3.24R.120 Promotion.

The employer shall give local Indians preferential consideration for all promotion opportunities and shall encourage local Indians to seek such opportunities; provided, that where not prohibited by federal law, first preference shall be given to members of the Puyallup Tribe, then, if no qualified Puyallup Tribal members are available, second preference shall be given to local Indians followed by nonlocal Indians as provided in PTC 3.24R.080(b). [Res. 260325 (03/26/25); Res. 280324A (03/28/24); Res. 061293 (12/06/93) § 2.4. Formerly 3.24R.100]

3.24R.130 Summer students.

Local Indians shall be given preference in the hiring of summer student help. [Res. 260325 (03/26/25); Res. 280324A (03/28/24); Res. 061293 (12/06/93) § 2.5. Formerly 3.24R.110]

3.24R.140 Retaliation.

No employer shall punish, terminate, harass, or otherwise retaliate against any employee, contractor or other person who has exercised his or her rights under these regulations or the accompanying TERO Ordinance (Chapter 3.24 PTC) or has assisted another to do so. Further, any employer who harasses or abuses an employee of the TERO carrying out official duties under this chapter shall be summarily removed from Tribal lands. The covered employer shall be responsible for the actions of its contractors, subcontractors and their employees regarding the prohibitions in this section. [Res. 260325 (03/26/25); Res. 280324A (03/28/24); Res. 061293 (12/06/93) § 2.6. Formerly 3.24R.120]

3.24R.150 Counseling and support programs.

The TERO, in conjunction with other Tribal and federal offices, will provide counseling and other support services to Indians employed by covered employers to help such Indians retain employment. Employers shall cooperate with such counseling and support services. No client shall be unreasonably terminated or laid off until counseling or support has been provided. [Res. 260325 (03/26/25); Res. 280324A (03/28/24); Res. 061293 (12/06/93) § 2.7. Formerly 3.24R.130]

Subchapter 3. Indian Preference in Contracting and Subcontracting

3.24R.160 Entity obligations.

(a) Generally. Every entity engaged in business activity on Tribal lands or within the jurisdiction of the Puyallup Tribe shall give preference to businesses certified by the TERO under Subchapter 4 of this chapter in any contract or subcontract it awards; provided 50 percent or more of said contract or subcontract is to be performed on Tribal lands within the jurisdiction of the Puyallup Tribe; and provided further, that there are qualified certified businesses willing to perform the work at a reasonable price, as defined under PTC 3.24R.180. If the entity determines that certified businesses are not qualified to perform all of the work required under a contract or subcontract, the entity shall apportion the project in such manner that the certified business can qualify for that portion of the work.

(b) Order of Preference. The following order of preference shall apply in the award of contracts and subcontracts:

(1) First preference shall be given to Indian preference certified businesses, 51 percent or more of which are owned by the Puyallup Tribe, Puyallup Tribal member(s), and other local Indians.

(2) Second preference shall be given to other Indian preference certified businesses.

(c) If no Indian preference certified businesses are available, Indian/non-Indian joint ventures approved by the TERO shall be given preference over wholly non-Indian-owned businesses or joint ventures.

(d) Notice to TERO and to Certified Businesses. Any entity intending to issue a bid, request for proposal, or other nonemergency action leading to the employment of a contractor covered by the TERO Ordinance (Chapter 3.24 PTC) and these regulations shall notify the TERO of its plans not less than 21 days before issuing notice to bidders or other potential contractors. The entity shall also obtain from the TERO a list of Indian preference certified businesses and shall send a copy of the bid notice or other notice setting out the contract opportunity to each Indian preference certified business engaged in the field of commerce in which the contract work will take place. The TERO shall identify such businesses according to the order of preference set out in subsection (b) of this section. An entity that fails to comply with this requirement shall be subject to the sanctions set out in Subchapter 9 of the TERO Ordinance (Chapter 3.24 PTC).

(e) Proviso. Provided, that if any requirement of these regulations is inconsistent with the requirements of federal law, the regulation shall take precedence to the latter. (As used in these regulations, the terms “contract” and “subcontract” apply to all contracts, including, but not limited to, contracts for construction, supplies, services, and equipment, regardless of tier.) [Res. 260325 (03/26/25); Res. 280324A (03/28/24); Res. 061293 (12/06/93) § 3.1. Formerly 3.24R.140]

3.24R.170 Responsibility for compliance.

Any entity engaged in business activity on Tribal lands or within the jurisdiction of the Puyallup Tribe of Indians shall be liable for the compliance of its contractors and subcontractors with these regulations. Specifically:

(a) Construction. An entity awarding a prime construction contract shall give preference in the award of the contract and for ensuring that the prime contractor also gives preference in the selection of subcontractors.

(b) When a prime contract is awarded directly by an agency of the United States government, the prime contractor shall be the responsible entity.

(c) When the entity is an Indian housing authority (IHA), it shall not be subject to any monetary sanctions as provided in PTC 3.24R.310, and shall be exempt from any requirements of these regulations that are inconsistent with the Department of Housing and Urban Development’s Indian preference regulations.

(d) When the entity is owned by the Puyallup Tribe and has been determined to be exempt from covered employer status under PTC 3.24R.020(a) and (b) it shall not be subject to any monetary sanctions as provided in PTC 3.24R.330, and shall be exempt from any requirements of these regulations unless otherwise agreed to.

(e) Given that no covered employer as prime contractor shall be permitted to commence work on Tribal lands until it has demonstrated that it will comply with the subcontract preference requirements, it is in the interest of the funding entity to ensure its low bidder will comply with the subcontract preference requirements prior to the award of the contract. The Puyallup Tribe of Indians shall not be liable for any losses incurred by the funding entity because it has entered into a contract with a prime contractor which, because of its failure to provide adequate proof that it will fully comply with the subcontract preference requirements of these regulations (e.g., through the submission of an acceptable compliance plan; see PTC 3.24R.050(b)), is not permitted to commence work on the Reservation.

(f) Natural Resource Development (Oil, Gas, Hard Rock Minerals, Timber, Etc.). Whereas the Tribe does not have authority over the United States government and federal agency contracting policies and procedures, these regulations do not apply to the award of direct prime contracts by a federal agency. However, the selected covered employer shall be required to comply with all subcontract preference requirements. Timber management companies contracted by the Puyallup Tribe of Indians on Tribally owned lands are a covered employer and shall comply. [Res. 260325 (03/26/25); Res. 280324A (03/28/24); Res. 061293 (12/06/93) § 3.2. Formerly 3.24R.150]

3.24R.180 Requirements in contracting.

Preference shall be given to certified businesses in the award of all contracts. A business may select contractors in any manner or procedure it so chooses; provided:

(a) Competitive Award. If a business uses competitive bidding or proposals, competition shall be limited to certified businesses. If the entity is unsure whether there are any qualified certified businesses, it shall publish a prior invitation for certified businesses to submit a statement of intent to respond to such a limited advertisement when published and to furnish, with the statement of intent, evidence sufficient to establish their technical qualifications. If the business fails to receive any statement of intent from a technically qualified certified business, it may, after notifying TERO, advertise for bids or proposals to the low bidder. If only one certified business submits a bid or statement of intent, the primary business (unless otherwise prohibited by federal law or regulation) shall enter into negotiations with that certified business and shall award the contract to that business so long as the business is technically qualified and is willing to perform the work at a reasonable price.

(b) Negotiated Award. If the business selects its contractor through negotiations or other informal process, it shall not enter into a contract with a noncertified business unless it has contacted every certified business in the relevant field and has determined that there is no certified business available that is technically qualified to perform the work required at a reasonable price. A business which is not certified shall not be selected, provided a certified business meets the minimum threshold qualifications. [Res. 260325 (03/26/25); Res. 280324A (03/28/24); Res. 061293 (12/06/93) § 3.3. Formerly 3.24R.160]

3.24R.190 Requirements in subcontracting.

(a) General Requirements. Preference shall be given in the award of all subcontracts to certified businesses. The TERO notice to contractors shall be included for any solicitations of bids from subcontractors. The contractor may select its subcontractor in any manner it so chooses; however:

(1) If the contractor uses competitive bidding or proposals, competition shall be limited to certified businesses. If the contractor is unsure whether there are any qualified certified businesses, it may publish a prior invitation for certified businesses to submit a statement of intent to respond to such a limited advertisement when published and to furnish, with the statement of intent, evidence sufficient to establish their technical qualification. If the contractor fails to receive any statement of intent from a technically qualified business, it may, after so notifying the TERO, advertise for bids or proposals without limiting competition to certified businesses and may award to the low bid. If only one certified business submits a bid or statement of intent, the contractor shall enter into negotiations with that business and shall award the contract to it, provided the business is technically qualified and is willing to perform the work at a reasonable price, as defined in PTC 3.24R.200.

(2) If the contractor selects its subcontractor through negotiations or other informal process, it shall not enter into a contract with a noncertified business unless it has contacted every certified business in the relevant field and has determined that there is no certified business available that is technically qualified to perform the work required at a reasonable price. So long as a certified business meets the minimum threshold qualifications as defined in PTC 3.24R.200, no noncertified business may be selected.

(b) Special Requirements. Businesses awarding construction contracts shall comply with the following special requirements in the award of subcontracts:

(1) The bid notice shall require that each bidder submit, as part of its bid, a subcontract plan showing, for each subcontract it intends to enter, the name of the business, whether it is certified, if it is not certified why the contractor did not select a certified business, and the projected subcontract price, as provided for in PTC 3.24R.070(b). (Since, pursuant to that section, a contractor will not be permitted to commence work on the Reservation unless it has an approved subcontracting plan, it is in the contract-awarding entity’s self-interest to declare as nonresponsive or nonresponsible any bidder who fails to submit a satisfactory plan.) The subcontract price information for each bidder shall be provided to the TERO and shall be used to ensure that a contractor has not engaged in bid shopping as a means to discourage certified businesses or to force them to accept a subcontract at an unreasonably low price.

(2) It shall be illegal for any contractor or bidder to engage in bid shopping. “Bid shopping” is defined as any practice involving or comparable to the contracting of different subcontracting businesses, informing them that a competitor has underbid them, but offering them an opportunity to underbid the competitor. Any contractor found to have engaged in bid shopping shall be prohibited from engaging in work on trust lands or within the jurisdiction of the Puyallup Tribe of Indians; if engaged in work, shall be liable for treble damages for any losses suffered by a certified business as a result of the contractor’s bid shopping practices. The TERO shall have the right to require any contractor to demonstrate that a reasonable relationship exists between the dollar amount of a proposed subcontract and the reasonable costs of supplies, materials and labor.

(3) The contractor shall not be prohibited from requiring that a subcontractor provide some form of security. However, if a subcontractor bonding requirement has been imposed and an Indian business is unable to obtain a bond, the prime contractor shall permit the Indian subcontractor to provide another adequate form of security. A list of acceptable bonding alternatives follows:

(A) No bond required on amounts of less than $25,000;

(B) Surety bonds;

(D) Increased retainers – 25 percent instead of normal;

(E) Letter of credit – 100 percent;

(F) Letter of credit – 10 percent – with cash monitoring system;

(G) Cash monitoring system;

(H) Other options to be considered as they arise.

The final decision on whether an alternative form of security is sufficient shall rest with the TERO.

(4) If no available certified business is qualified to perform a particular subcontract because the subcontract is too large for the capacity of any one certified business, where otherwise permitted by law the contractor shall make a good faith effort to divide that subcontract into smaller pieces so that several certified businesses may qualify and perform the work.

(c) Technical Assistance to Indian Subcontractors. The prime contractor shall develop, submit and implement a plan for assisting Indian subcontractors to develop and improve their technical and managerial capabilities. [Res. 260325 (03/26/25); Res. 280324A (03/28/24); Res. 061293 (12/06/93) § 3.4. Formerly 3.24R.170]

3.24R.200 Responsibility for evaluating technical qualifications and reasonable price.

(a) Technical Qualifications. The business and its contractors and subcontractors shall have the discretion to determine technical qualifications. Should the business determine that there are no technically qualified certified businesses available it shall provide to each certified business it rejects a description, in writing, of areas in which it believes the business is weak and steps it should take to upgrade its qualifications.

(b) If a certified business that is disqualified because of insufficient technical qualifications believes that the disqualification was an improper effort by an entity, contractor, or subcontractor to circumvent its preference responsibilities under these regulations, it may file a complaint with the TERO. The complaint shall be filed within 20 days after the business received notice of nonqualification. The burden shall be on the complaining business to demonstrate that it is qualified and its disqualification was the result of an effort to circumvent these regulations. If after a hearing, as provided for in Subchapter 6 of this chapter, the complaint is found to be valid, the TERO Director shall impose such reasonable sanctions as he or she deems appropriate, including punitive damages.

(c) Reasonable Price. A business may use any process it so chooses for determining what constitutes a reasonable price including, but not limited to, competitive bidding (open or closed), private negotiations, or the establishment of prototype cost ceiling before bidding or negotiations commence.

(d) Before a business may reject all certified businesses on the basis of price, it must offer one or more of the certified businesses an opportunity to negotiate price. If there is only one technically qualified certified business, an entity shall enter into negotiations on price with that business and must contract with that business if a reasonable price can be negotiated. No business may reject a certified business on the grounds that the price is not reasonable and subsequently contract with a noncertified business at the same or higher price. Any contract modification executed between a certified business and a noncertified business during the course of a project which results in a higher price to the noncertified business will be subject to review by the TERO to ensure that the modification in price is justified and not a circumvention of this section. Any covered employer found to have violated this regulation by such circumvention shall be liable for treble damages for any loss suffered by a certified business as a result of the business’s action. [Res. 260325 (03/26/25); Res. 280324A (03/28/24); Res. 061293 (12/06/93) § 3.5. Formerly 3.24R.180]

3.24R.210 Operation of the contract or subcontractor.

Once a primary business enters into a contract with a certified business, the TERO shall not intervene in the relationship between the parties unless a certified business demonstrates that action taken against it is intended primarily to circumvent the requirements of these regulations. [Res. 260325 (03/26/25); Res. 280324A (03/28/24); Res. 061293 (12/06/93) § 3.6. Formerly 3.24R.190]

3.24R.220 Brokering and fronts.

No Indian business shall represent that it is exercising management control of a project in order to qualify for Indian preference in the award of said contract or subcontract when in fact such management control is exercised by a non-Indian entity such that the Indian entity is acting as a front or brokering out services. [Res. 260325 (03/26/25); Res. 280324A (03/28/24); Res. 061293 (12/06/93) § 3.7. Formerly 3.24R.200]

Subchapter 4. Criteria and Procedures for Certifying Businesses as Indian Preference Eligible

3.24R.230 General statement of policy.

Pursuant to its sovereign authority, the Puyallup Tribe of Indians has imposed Indian preference contract requirements as a tool for promoting the economic development of Indian-owned companies. Indian preference in contracting can assist in the development of Indian businesses and thereby assist the Tribe and its members to achieve economic self-sufficiency.

If the preference tool is abused, however, it will undermine development and discredit the process. Therefore, it is the policy of the Tribe to require that an applicant for Indian contract preference certification provide substantial evidence that it is a legitimate Indian-owned and controlled business.

Specific criteria shall apply in the evaluation of an applicant. See PTC 3.24R.240. Experience has shown that persons interested in abusing the Indian preference program are able to structure businesses to get around most specific criteria. Therefore, in addition to applying the specific criteria, the reviewing body for the Tribe shall evaluate a business under the following general criteria:

(a) Applying sound management principles, whether the business would be structured as it is, and whether the Indian owners would have been given the amount of ownership and control they have if there were no Indian preference program in existence. If the reviewing body determines that there is good reason to believe that the business has been structured (managerially or financially) in a manner that is convoluted or inconsistent with sound business practices in order to enable the business to qualify for Indian preference certification, the business shall be denied certification, even if it meets the specific criteria, unless the business is able to demonstrate beyond a reasonable doubt that it was not structured to manipulate the Indian preference criteria.

(b) The specific criteria also require that the ownership, control and management of a business make sense from a sound business perspective. The Indian owners must own and control at least 51 percent of the business. A primary consideration is what the Indian owner(s) brought to the business as justification for a share of the business were Indian preference not a factor. For example, assume the Indian owner paid for his share through a promissory note to the non-Indian owners. In the ordinary course of business, such a transaction would not occur unless the new owners brought something of value, such as managerial or technical expertise, capital, equipment, or marketing opportunities. The ability to qualify for Indian preference is not considered such a marketing opportunity. Such an arrangement would be cause to deny Indian preference certification unless a sound business reason for the arrangement exists. Where an Indian can demonstrate that he or she was unable to provide good value for his or her 51 percent share because the usual sources of capital were closed off to him or her because he or she was an Indian, that person shall be required to demonstrate that he or she extended his or her capital raising ability as far as possible – such that he or she is “at risk” in a significant way – e.g., mortgaged a house or vehicle.

(c) The Indian owner(s) must be directly involved in the business’s management. While it is not required that an Indian owner be the chief operating officer of the business, at least one of the Indian owners must be involved in the day-to-day operations of the business on a full-time basis and in a senior level position. The Indian person in this position shall have the experience or expertise in the area of business the business is engaged in (or in management generally) to make the senior level role a legitimate one. The Indian owner(s) must also have sufficient knowledge about the business to be accountable for the business’s activities.

(d) Certification shall not be granted to a business whose Indian owners are not involved in the manner described above. There is virtually no benefit to the Indian community from such passive ownership, other than profits to the owners. It could take several years for a business to show a profit, if one in fact materializes. Yet during that time the non-Indian managers can benefit at the expense of the Indian community. The limited benefits to the Indian owner(s) do not justify this risk. One of two exceptions to this rule is that certification will be granted to 100 percent Indian-owned businesses where the manager of the business is a non-Indian spouse of an Indian and the family lives on or near the Reservation. No effort will be made to distinguish between the value contributed by a non-Indian spouse versus the Indian spouse. The family’s contribution will be treated as an undivided unit. The second exception is for a more “public corporation,” defined as one that is owned by 10 or more persons, 70 percent of which is Indian-owned and the chief executive officer is an Indian.

(1) Joint Ventures. Joint ventures shall not be granted certification as Indian preference businesses. However, an Indian/non-Indian joint venture will be given preference over non-Indian businesses, if there are no certified Indian preference unitary businesses available.

Such rigorous criteria, giving substantial discretion to the reviewing body, are necessary and appropriate for the Indian contract preference program. Neither the Tribe nor the Indian community benefits from the establishment of “bogus” Indian businesses, while the certification of such businesses undercuts the credibility of the Tribe’s Indian preference program. An Indian business or individual that is unable, on its own, to qualify as the prime contractor on a large project has other options open to it besides participating in the development of a bogus business. For example, he or she can seek work at the subcontractor or employee level and benefit from the Tribe requirement that preference be given to Indian subcontractors and employees.

(2) Procedural Requirements. The procedural requirements for certification provide that applications shall be reviewed by the staff of the Tribe’s Tribal Employment Rights Office (TERO), which shall request any additional information it believes appropriate. The TERO will then make a decision on certification. If a business is dissatisfied with the TERO’s decision and believes that these procedures were not properly followed, the business has the right of appeal to the Tribal Court, which shall reverse the decision only if it finds that the decision was arbitrary or capricious.

(3) Probationary Certification. A business shall first receive a probationary certification of one year, or a longer period where the TERO believes such is necessary. The TERO shall have the right at any time, either on their own initiative or upon filing of a complaint by any party, to conduct an investigation of a business to determine if its certification should be suspended or withdrawn. [Res. 260325 (03/26/25); Res. 280324A (03/28/24); Res. 061293 (12/06/93) § 4.1. Formerly 3.24R.210]

3.24R.240 Criteria for Indian contract preference certification.

To receive certification as a business eligible for Indian preference, an applicant must satisfy all the criteria set out in this section:

(a) Ownership. The business must be at least 51 percent Indian-owned. The applicant must demonstrate the following:

(1) Formal Ownership. That an Indian or Indians own(s) 51 percent or more of the partnership, corporation, or other arrangement for which the application is being submitted. Such ownership must be embodied in the business’s organic documents, such as its stock ownership or partnership agreement. Ownership includes:

(A) Financial ownership – i.e., the Indian(s) owns 51 percent or more of the assets and equipment, will receive 51 percent or more of the business’s assets upon dissolution, and will receive 51 percent or more of the profits; and

(B) Control – i.e., the Indian(s)’ 51 percent or more ownership provides him or her with a majority of voting rights or other decisional authority and that all decisions of the business are to be made by a majority vote except where otherwise required by law.

(2) Value. The Indian owner(s) provided real value for 51 percent or more ownership by providing capital, equipment, real property or similar assets commensurate with the value of the ownership share. It will not be considered “real value” if the Indian(s) purchased the ownership share, directly or indirectly, through a promissory note, the ultimate creditor of which is the non-Indian owner of the business or an immediate relation thereof, or any similar arrangement, unless a convincing showing can be made that the Indian owner(s) brought such special skills, marketing connections, or similar benefits to the business that there is a good reason to believe the arrangement would have been entered into even if there were not an Indian participant and that he or she could not pay good value for his or her 51 percent or more Indian ownership because the normal capital sources were closed to him or her because he or she is an Indian. The Indian owner(s) may satisfy this requirement by demonstrating further that he or she extended his or her capital-raising capability as far as possible, such that the Indian participant clearly is at risk in the business in relationship to his or her means.

(3) Profit. The Indian owner(s) will receive 51 percent or more of all profits. If there is any provision that gives the non-Indian owner a greater share of the profits, in whatever form and under whatever name, such as through management fees, equipment rental fees, or bonuses tied to profits, certification will be denied. Salary scales will be reviewed to ensure the relative salaries being paid Indian and non-Indian owners are consistent with the skills of the parties and are not being used to circumvent the requirement that Indian owners receive 51 percent or more of the profits.

(b) Management Control. The business must be under significant Indian management and control. The business must be able to demonstrate that:

(1) One or more of the Indian owners must be substantially involved, as a senior level official, in the day-to-day management of the business as his or her primary employment activity. The Indian owner does not have to be the chief executive officer. However, he or she must, through prior experience or training, have substantial occupational ties to the area of business in which the business is engaged such that he or she is qualified to serve in the senior level position and is sufficiently knowledgeable about the business’s activities to be accountable to the Tribe for the business’s activities. This provision may be waived when:

(A) The business is 100 percent Indian-owned and the chief executive officer is the spouse and/or parent of the owner(s), the family lives on or near the Reservation, and the majority of employees are Indian; or

(B) The business is modeled on a publicly held corporation such that it is owned by 10 or more persons, is at least 70 percent Indian-owned, the chief executive officer and the highest-salaried employee in the business is/are Indian, and a majority of the employees are Indian.

(C) Integrity of Structure. There must be good reason to believe that the business was not established solely or primarily to take advantage of the Indian preference program. In evaluating an applicant under this criterion the TERO will consider the factors set out below. The TERO shall exercise broad discretion in applying these criteria in order to preserve the integrity of the Indian preference program and in questionable cases shall deny the certification.

(i) History of the Business. Whether the history of the business provides reason to believe it was established primarily to take advantage of the Indian preference program, and in particular whether the business, a portion of the business, or key actors in the business originally were associated with a non-Indian-owned business that gained little of business value in terms of capital, expertise, equipment, etc., by adding ownership or merging with an Indian business.

(ii) Employees. Whether key non-Indian employees of the applicant are former employees of a non-Indian business with which the Indian business is or has been affiliated, through a joint venture or other arrangement, such that there is reason to believe the non-Indian business is controlling the applicant.

Whether Indians are employed in all or most of the positions for which qualified Indians are available. A high percentage of non-Indian employees in such positions will provide reason to believe the business was established primarily to benefit non-Indians.

(iii) Relative Experience and Resources. Whether the experience, expertise, resources, etc., of the non-Indian partner(s) is so much greater than that of the Indian(s) that there is little sound business reason for the non-Indian to accept a junior role in the business other than to be able to take advantage of the Indian preference program.

(D) Brokers. Brokers will be certified only if they are dealers who own, operate, or maintain a store, warehouse, or other establishment in which the commodities being supplied are bought, kept in stock, and sold to the public in the usual course of business; provided, that this requirement shall not apply where the applicant demonstrates that it is customary and usual in the area of trade for a broker/dealer not to maintain an establishment and to keep the commodities in stock.

(E) Manufacturing Companies. In determining whether or not a manufacturing business is 51 percent Indian-owned and controlled, the TERO shall be guided by the Small Business Administration Standard Operating Procedures on certifying businesses as eligible for the 8(a) Program. [Res. 260325 (03/26/25); Res. 280324A (03/28/24); Res. 061293 (12/06/93) § 4.2. Formerly 3.24R.220]

3.24R.250 Certification procedures.

(a) Application for Certification. A business seeking certification as an Indian preference eligible business shall submit a completed application (see PTC 3.24R.260) to the TERO on a form provided by the TERO. (Application forms may be obtained at the TERO’s office.) TERO staff will be available to assist a business fill out the application. Within 21 days after receipt of a completed application, the staff shall review the application, request such additional information as it believes during the time any request for additional information is outstanding, and conduct such investigations as it deems appropriate. Copies of the analysis and recommended disposition shall be kept confidential and shall not be made available to the applicant or any other party. When it is so required, the TERO may extend the processing period by an additional 21 days, by sending notification of the extension to the applicant by registered mail.

(b) Probationary Certification. An applicant granted certification shall be issued a one-year probationary certificate. During that period, the TERO staff shall monitor the business’s activities to ensure that the business is operating in the manner described in its application. During the probationary period, the TERO shall have the right to request and receive such information and documents as they deem appropriate.

(1) Grant full certification;

(2) Continue the probationary period for up to six months; or

(3) Deny certification.

(d) Withdrawal of Certification. From the information provided in reports required by subsection (f) of this section and PTC 3.24R.300, on the basis of a written grievance filed by any other business or person, or on its own initiative, the TERO may initiate the process to withdraw or suspend the certification of any business. The TERO shall send the business notice, by registered mail, that its certification is being examined, along with the grounds therefor. After the examination, the TERO may:

(1) Withdraw certification;

(2) Suspend certification for not more than one year;

(3) Probation; or

(4) Order corrective action within a fixed period.

An employer that has had its certification withdrawn may not reapply for a period of one year.

(e) Employers Certified Prior to the Adoption of These Criteria. Each covered employer holding Indian preference certification from the Tribe prior to the effective date of these regulations shall submit an application as required by these regulations to the TERO within 30 days following the effective date of these regulations.

(1) Should the TERO determine the employer qualifies it shall, within 21 days of its receipt by the TERO, approve application.

(2) Should the TERO determine the covered employer does not qualify, it shall prepare an analysis of the reasons therefor, together with its disposition. Should the TERO require additional information from the employer, computation of the 21-day period shall be paused for a reasonable time to permit such information to be provided. After providing the employer an opportunity for a review of decision as provided in Subchapter 6 of this chapter, which shall be conducted within 15 days after receipt of the TERO’s disposition, the TERO shall:

(A) Grant the covered employer a new certificate; or

(B) Determine that the employer is not in compliance. If TERO determines that the employer is not in compliance, it shall provide the reasons therefor. The employer shall then have 15 days from the date of the decision to demonstrate that it has made such changes as are necessary to come into compliance. If at the end of the 15-day period the covered employer has failed to come into compliance, its certificate shall be withdrawn. A copy of the withdrawal notice shall be sent to the employer.

(f) Change in Status and Annual Reports. Each certified employer shall report in writing to the TERO any changes in its ownership or control status within the 60 days following such. Each certified employer, on the anniversary of its receipt of permanent certification, shall update its initial application for certification. Failure to provide such information shall constitute grounds for withdrawal of certification.

(g) Update of Records and Status. All certified employers will maintain contact with the TERO and keep all contact information current and up to date annually. Failure to notify or maintain contact, or to notify of the closure or discontinuation of the business, may result in the revocation of the certification and removal from the certified I.P. list. If certification is revoked the employer would need to reapply for recertification. [Res. 260325 (03/26/25); Res. 280324A (03/28/24); Res. 061293 (12/06/93) § 4.3. Formerly 3.24R.230]

3.24R.260 Application for certification as an Indian preference business.

1. Covered Employer Identification.

Name of Covered Employer’s Business (exactly as you want it to appear on all documents).

_________________________________________________

Address: _________________________________________________

Telephone: _________________________________________________

Date of Submission: ____________________________________________

Single business: ___________________ Joint Venture: ___________________

Contact Person: _____________________________________________

Address: __________________________________________________

Telephone (Bus.) _______________________ Home: ______________

Type of business (list all areas of business in which the business intends to engage):

__________________________________________________________________

Federal Identification Number: ___________________________________

Number of Employees: _______ Number of Indian Employees: ________

Year business was established: ____________________________________

2. Ownership.

A. Type of ownership (check one):

____ Sole proprietorship

____ Partnership (attach copy of partnership agreement with all amendments since date partnership created).

____ Corporation (attach copy of the Certificate of Incorporation, Articles of Incorporation and Bylaws, including all amendments since date of incorporation).

B. Percent of Indian ownership: ____%

C. Provide for each Indian owner, his or her name, address, tribal affiliation, enrollment number, percent of ownership, amount of investment in the business, method of investment (cash, equipment, loan or promissory note indicating who the loan is from), percent of voting control and position in the business.

D. List for each non-Indian owner, his or her name, address, percent of ownership, amount of investment in business, method of investment (cash, equipment, loan or promissory note indicating who the loan or note is from), percent of voting control, position in business, name of all other businesses in which the owner holds or has held within the past year an ownership interest (other than publicly held corporations and similar ownerships held solely for investment purposes) or a management position.

E. List any management fee, equipment rental, bonuses or other arrangements that will provide payment to non-Indian owners beyond their share of profits and salaries, as indicated above.

F. Describe or attach any stock options or other ownership options that are outstanding and any agreements between owners or between owners and third parties which restrict ownership or control of Indian owners.

G. Identify any owner or management official of the named company who is or has been an employee of another company that has an ownership interest in or a present business relationship with the named company; present business relationships include shared space, equipment, financing, or employees as well as both companies having some of the same owners.

H. Indicate if this company or other companies with any of the same officers have previously received or been denied certification or participation as an Indian preference business and describe the circumstances. Indicate the name of the certifying authority and the date of such certification or denial.

3. MANAGEMENT

A. Provide for each owner of more than five percent (5%) interest, all senior management personnel and members of the Board of Directors the following:

1. Name, address and social security number. If Indian, please include his or her Tribe and enrollment number.

2. Present position and description of duties.

3. Previous business experience.

4. Previous work experience in areas in which the business intends to engage.

5. Other previous work experience.

6. Education and training.

7. Other jobs presently held.

B. Control of company. Identify by name, race, sex and title in the company of those individuals (owners and non-owners) who are responsible for day-to-day management, including, but not limited to, those with prime responsibility for:

1. Financial Decisions.

2. Management decisions, such as:

a. Marketing and sales;

b. Hiring and firing;

c. Purchase of major equipment or supplies;

d. Supervision of field personnel.

4. CAPITAL AND EQUIPMENT

A. Equipment. List all equipment which costs $300.00 or more when new.

QUANTITY

DESCRIPTION

PRICE

HOW OBTAINED (Purchased, etc.)

B. Capital.

1. Attach a current balance sheet.

2. Identify amount and source of original and present capital. (e.g., contributed by owner, bank loan – if loan, indicate name(s) of those legally bound to repay if other than organization).

C. Additional submissions.

Each applicant shall submit with this application the following:

1. List of officers, principal stockholders, and directors, with mailing addresses and number of shares held by each.

2. A sworn statement of the proper officer showing:

a. The total number of shares of the capital stock actually issued and the amount of cash paid into the treasury on each share sold; or, if paid in property, the kind, quantity and value of the same per share.

b. Of the stock sold, how much remains unpaid and subject to assessment.

c. The amount of cash the company has in its treasury and elsewhere.

d. The property, exclusive of cash, owned by the company and its value.

e. The total indebtedness of the company and the nature of its obligations.

5. CERTIFICATION

I hereby certify that the information provided in this application is true and complete to the best of my knowledge and belief. I further certify that I have read the applicable ordinances, regulations, criteria and procedures of the Puyallup Tribe of Indians and do hereby submit to the jurisdiction provided therein.

Name of business: ____________________________________________________

By:

_______________________________________________________________

(Signature of authorized officer and title)

Name: _____________________________________________________________

Title: ____________________________________________________________

[Res. 260325 (03/26/25); Res. 280324A (03/28/24); Res. 061293 (12/06/93) Appendix. Formerly 3.24R.240]

Subchapter 5. Fees

3.24R.270 Provision for collection of fees.

Except as otherwise provided all fees are due and shall be paid in full by any covered employer prior to commencing work. Other arrangements for payment may be negotiated and any determination shall be in writing and signed by the Director.

Immediately upon becoming aware that a project is covered by TERO, the covered employer shall contact the TERO to schedule orientation. The purpose of orientation is to educate the employer on the requirements, laws and regulations, which include the TERO fee. The employer will be informed of the nature and purpose of the fee, the percentage, the specific amount due, if known, the date due, and the possible consequences should the employer fail to comply. The notice shall be accompanied by a formal notice of fees due informing covered employer that payment is overdue.

Should the employer fail to pay the fee by the day it commences work on Tribal lands or within the jurisdiction of the Puyallup Tribe of Indians, interest shall begin to accrue on that date at the rate of 10 percent per annum. On the day following that on which the employer commenced work, the Director shall send notice to the employer, by registered mail, that the fee is overdue and of the consequences imposed if the fee is not paid immediately.

If the fee is not paid by the fifteenth day after the employer commenced work, the Director shall issue a formal violation of noncompliance, and shall schedule a meeting within five days or as soon thereafter as can be reasonably done and shall inform the employer of the scheduled time, date and purpose of the meeting.

The outcome of the meeting will determine how the Tribe will move forward with the employer and if issuance of violation was proper and if additional penalties as described below should be imposed:

(a) Impose penalties of not more than 10 percent of the amount due;

(b) Petition the Tribal Court to affirm the imposed violation of this chapter and to enforce any related requirements or penalties as provided by law.

Where the Director of the TERO has reasonable cause to believe that an employer will flee the jurisdiction prior to resolution of the matter, the Director may accelerate initiation any of the procedures provided for in PTC 3.24.480, notwithstanding the above procedure. [Res. 260325 (03/26/25); Res. 280324A (03/28/24); Res. 061293 (12/06/93) § 5.1. Formerly 3.24R.250]

3.24R.280 Entities’ and employers’ responsibility of fee

A covered employer who is awarded a contract by a business is responsible for the payment of the TERO fee. The fee is to be recognized as a sovereign right of the Puyallup Tribe of Indians for doing business within Tribal lands, and shall be paid as they would any other governmental fee or tax.

The TERO fee is not to be included or incorporated into the bid or contract in order to circumvent the payment or to charge back the fee to the awarding entity. Fees are calculated at two and one-half percent of the project total cost, which includes any change orders or added modifications. It is the responsibility of the awarding entity to ensure that all bids are evaluated and determine that the fee is not included in a line item or included in any other portion of the bid or contract. [Res. 260325 (03/26/25); Res. 280324A (03/28/24); Res. 061293 (12/06/93) § 5.2. Formerly 3.24R.260]

3.24R.290 Alternative arrangement.

The Director, in their discretion, may, upon receipt of a written request, negotiate and authorize an employer to pay the required fee in installments over the course of the year or the contract, as appropriate, when:

(a) The total annual fee exceeds $10,000; and

(b) The employer demonstrates hardship or other good cause.

The decision to authorize an alternative arrangement, which shall be in writing, shall rest solely with the TERO Director and is not appealable.

The employer shall pay interest, at the prime rate, on all amounts paid after the day he or she commences work on the Reservation when paying under an alternative arrangement. [Res. 260325 (03/26/25); Res. 280324A (03/28/24); Res. 061293 (12/06/93) § 5.3. Formerly 3.24R.270]

Subchapter 6. Administrative Procedures

3.24R.300 Reports, monitoring and compliance.

(a) All covered employers engaged in any aspect of business activity on Tribal lands or within the jurisdiction of the Puyallup Tribe of Indians shall submit reports and such other information as required by TERO. Designated employees of the TERO have the authority to make on-site inspections during regular working hours in order to monitor a covered employer’s compliance with these regulations. The Director, Compliance Officer or Dispatcher shall notify the employer, entity or a supervisor on site immediately should there be any direct violations or concerns of noncompliance.

(b) Employees of the TERO also have the authority to inspect and copy all relevant records of a covered employer, of the employer’s signatory unions or subcontracts, to speak with both TERO and non-TERO workers on the job site, and to engage in investigatory activities as deemed necessary. All information collected by the TERO shall be kept strictly confidential, unless disclosure is required during a hearing or appeal as provided for in these regulations.

(c) Any covered employer or their employees, if requested, shall identify themselves to the TERO Director, Officer or Dispatcher while on site performing work. Failure to cooperate shall constitute removal by the Compliance Officer of that individual from the site until proper identification is provided. If the contacted party is uncooperative, their direct supervisor will be contacted in order to reach resolution. It is the covered employer’s responsibility to ensure all employees are informed and educated on the requirements of TERO and the steps necessary to maintain compliance. [Res. 260325 (03/26/25); Res. 280324A (03/28/24); Res. 061293 (12/06/93) § 6.1. Formerly 3.24R.280]

3.24R.310 Individual complaint procedures.

(a) Noncompliance by a Covered Employer. Any Indian or group of Indians, representatives or group of a class of Indians, certified employer, or other persons or entity who believe that a covered employer has failed to comply with these regulations, or who believe that they have been discriminated against by an employer because they are Indian, may file a complaint, whether or not they can show that they were personally harmed by the business’s noncompliance.

(b) Noncompliance by TERO. Any entity, group of entities, noncertified employers, non-Indian workers, or entity who believe that an action of the TERO Office under these regulations is in violation of these regulations, or Tribal or federal law, may file a complaint with the TERO Committee. Persons may file whether or not they can show they were personally harmed by the TERO’s action.

(c) All complaints by a business, their employee or a TERO client must be submitted through the appropriate chain of command. All administrative remedies must be exhausted through the proper chain of command as follows:

(1) Complaints Against Employers. Submissions must be in writing to the TERO Compliance Officer in a direct attempt for resolution between parties. The Compliance Officer may require a meeting or mediation with involved parties to reach resolution. Once an agreement is reached, the agreement will be documented in writing, with the agreed requirements stated clearly and with signatures of all involved parties, along with the procedures to be followed should that agreement be breached by any party.

(A) If resolution cannot be reached between the parties with the assistance of the Compliance Officer, the complaint shall be taken to the Director. The Director will arrange a meeting with the involved parties to seek an informal settlement. Once a settlement is reached, the agreement will be documented in writing, with the agreed requirements stated clearly and with signatures of all involved parties, along with the procedures to be followed should that agreement be breached by any party. Any reached agreement will be documented in writing with signatures of all involved parties.

(B) If resolution cannot be reached between the parties, the complaining party may file a complaint with the Tribal Court. The judge will review any and all evidence or documentation provided by all involved parties and render a decision based on the facts and merits of the case.

(C) Complaints shall be submitted to the TERO. Complaints will not be heard by or infringed upon by Puyallup Tribal Council. The TERO is responsible for ensuring that all procedures are followed, documented and resolved to the fullest extent of jurisdiction.

(2) Complaints Against the TERO. Submissions must be in writing to the TERO Compliance Officer in a direct attempt for resolution between parties. The Compliance Officer may require a meeting or mediation with involved parties to reach resolution. Once an agreement is reached, the agreement will be documented in writing, with the agreed requirements stated clearly and with signatures of all involved parties, along with the procedures to be followed should that agreement be breached by any party.

(A) If resolution cannot be reached between the party and the TERO, the complaint shall be forwarded to the TERO Committee and complaint review procedures codified in Chapter 3.24 PTC, Tribal Employment Rights Ordinance, and herein shall be followed. The Committee Chair will arrange a meeting with the involved parties to seek an informal settlement. Once a settlement is reached, the agreement will be documented in writing, with the agreed requirements stated clearly and with signatures of all involved parties, along with the procedures to be followed should that agreement be breached by any party. Any reached agreement will be documented in writing with signatures of all involved parties.

(B) If resolution cannot be reached between the party and the TERO, the complaining party may file a complaint with the Tribal Court. The judge will review any and all evidence or documentation provided by all involved parties and render a decision based on the facts and merits of the case.

(C) Complaints shall be submitted to TERO. Complaints will not be heard by or infringed upon by Puyallup Tribal Council. The TERO is responsible for ensuring that all procedures are followed, documented and resolved to the fullest extent of jurisdiction. [Res. 260325 (03/26/25); Res. 280324A (03/28/24); Res. 061293 (12/06/93) § 6.2. Formerly 3.24R.290]

3.24R.320 Compliance and hearing procedures.

(a) Informal Settlement. If the TERO has reason to believe that a covered employer has failed to comply with any of these regulations, it shall notify the employer in writing, specifying the alleged violation(s). Should the party notified be a contractor or a subcontractor, notice shall also be provided to the employer holding the permit or authorization under which the contractor or subcontractor is operating and such entity shall be a party to all further negotiations, hearings and appeals.

The TERO shall then conduct an investigation of the charge and shall attempt to achieve an informal settlement of the matter. If voluntary conciliation cannot be achieved and the Director has reasonable cause to believe a party has violated the ordinance (Chapter 3.24 PTC) or regulations, he shall issue a formal notice of noncompliance to the party and shall proceed with the enforcement procedure provided by law. [Res. 260325 (03/26/25); Res. 280324A (03/28/24); Res. 061293 (12/06/93) § 6.3. Formerly 3.24R.300]

3.24R.330 Sanctions.

The TERO may impose any or all of the following sanctions where it finds a violation of Chapter 3.24 PTC or these regulations. If, after review, the TERO determines that a violation has occurred, the TERO shall:

(a) Deny such party the right to commence business on or near Tribal lands;

(b) Impose a fine in an amount not to exceed $1,000 for each violation;

(d) Terminate such party’s operation on or near Tribal lands;

(e) Deny the right of such party to conduct any further business on or near Tribal lands;

(f) Order such party to make payment of back pay to any aggrieved Indian;

(g) Order such party to dismiss any employees hired in violation of these regulations;

(h) Order such party to take such other action as is necessary to ensure compliance with the ordinance (Chapter 3.24 PTC) or to remedy any harm caused by a violation of the ordinance.

(i) The TERO’s decision shall be in writing, shall be served on the charged party by registered mail or in person and shall be submitted not later than 30 days after the close of the hearing. Where failure to comply immediately with the TERO’s orders may cause irreparable harm, the TERO may move the Tribal Court for, and the Tribal Court shall grant, such injunctive relief as necessary to preserve the rights of the beneficiaries of the ordinance (Chapter 3.24 PTC), pending the party’s appeal or expiration of the time for appeal. [Res. 260325 (03/26/25); Res. 280324A (03/28/24); Res. 061293 (12/06/93) § 6.4. Formerly 3.24R.310]

3.24R.340 Appeals.

Any business or complaining party shall have the right to appeal any decision to the Tribal Court. [Res. 260325 (03/26/25); Res. 280324A (03/28/24); Res. 061293 (12/06/93) § 6.5. Formerly 3.24R.320]

3.24R.350 Bonds.

The Director may require an entity to post a bond with the Tribe pending a hearing and may petition the Court from a decision of the TERO, upon making a written finding that any of the following conditions exist. The entity:

(a) Has no permanent place of business on trust lands or within the jurisdiction of the Puyallup Indian Tribe; and

(b) The amount of sanction exceeds or likely will exceed $1,000; and

(c) The project on which the entity is employed will be substantially completed within 60 days, such that it may be difficult to locate property of said employer on trust lands or within the jurisdiction of the Puyallup Indian Tribe that would be available for attachment or confiscation should the entity fail to pay a sanction imposed on it; and

(d) The entity has failed to comply with an order of the TERO or the Courts in the past, and the employer has engaged in behavior that demonstrates a disregard for the authority and requirements of the TERO, such that the Director has good reason to believe the entity will not comply with the orders of the TERO or the Courts. [Res. 260325 (03/26/25); Res. 280324A (03/28/24); Res. 061293 (12/06/93) § 6.6. Formerly 3.24R.330]

3.24R.360 Attachment.

The TERO may petition the Court for attachment of property of an entity should any of the following conditions exist:

(a) An entity has refused or failed to post a bond after being ordered to do so by the Director or Court as provided in PTC 3.24R.350; or

(b) The TERO has good reason to believe the entity will remove itself or its property before it can complete its efforts to require the entity to post a bond; or

(c) The entity has demonstrated an intent to disregard the orders of the Director or Court. [Res. 260325 (03/26/25); Res. 280324A (03/28/24); Res. 061293 (12/06/93) § 6.7. Formerly 3.24R.340]

3.24R.370 Irreparable harm.

A finding of irreparable harm upon the petition of the TERO for injunctive relief shall be made only upon a showing that damage will occur that cannot be adequately remedied through the payment of monetary damages. Such showing shall include but is not limited to the following:

(a) That a contractor or subcontractor is about to or has begun work on a contract or subcontract entered into in violation of the provisions of the ordinance (Chapter 3.24 PTC) or regulations requiring contract or subcontract preference, when there is one or more Indian businesses available to perform said contract or subcontract, since it is impossible to measure in monetary terms the damages suffered by an Indian business’s failure to obtain a contract or subcontract.

(b) A business or its subcontractor is about to or has hired two or more persons in violation of the provisions of the ordinance (Chapter 3.24 PTC) or regulations requiring Indian employment preference, and there are Indians available to fill those positions, since it is difficult to identify the specific Indians who would fill those positions once the number of positions at issue is two or greater, making the payment of payback difficult to achieve.

(c) A covered employer refuses to submit a preference plan in the time required and indicates through words or action that it intends to disregard the requirement imposed by the ordinance (Chapter 3.24 PTC) or regulations. [Res. 260325 (03/26/25); Res. 280324A (03/28/24); Res. 061293 (12/06/93) § 6.8. Formerly 3.24R.350]

Subchapter 7. Due Process Administrative Review Procedures

3.24R.380 Review procedures.

(a) Review of TERO Files. The respondent employer or entity against whom a violation has been issued shall have the right to review the case file of the Director by scheduling a visit to the TERO Office during regular working hours at any point after receiving notice of a hearing. The Director, however, shall have the right to protect confidential information. The file shall be cleared of confidential information in a manner that causes the loss of the least amount of relevant information from the files.

(b) List of Witnesses. Ten days prior to the time set for review (or as soon as possible if the review is to be conducted within 10 days after notice), the respondent and the Director shall share with each other a list of witnesses that each intends to include as part of the review, the approximate length of their statement, and the subject matter and relevance of their statement. It shall indicate any witnesses whose presence must be requested. Both the complainant and respondent are responsible for notifying their respective witnesses and requesting their presence at the hearing.

(c) Prehearing Interview of Witnesses. The respondent and the Director shall have the right to submit questions to any witnesses prior to the review. The Director’s witnesses shall be interviewed in the presence of the Director or his delegate. The respondent’s witnesses shall be interviewed under such reasonable conditions as are established by the respondent.

(d) Requests for Documents and Items. The respondent shall, no later than 10 days prior to the review (or as soon as possible if the hearing is noticed less than 10 days before the review), provide the Director with a list of information it wishes to have requested and the relevance of each. The Director shall request all relevant items listed as well as items needed by the Director.

(e) Postponements. Any request for a postponement of the review must be submitted in writing to the Director no fewer than three days prior to the hearing. Should the Director and the respondent mutually agree to a postponement because of the possibility of settling the matter, the decision for postponement may occur anytime.

(f) Written Declarations. Written declarations shall be permitted as evidence for the review when a party wishes to use the written testimony of a witness who cannot appear. [Res. 260325 (03/26/25); Res. 280324A (03/28/24); Res. 061293 (12/06/93) § 7.1. Formerly 3.24R.360]

3.24R.390 Decision.

The TERO shall render a decision and deliver the decision in writing to the respondent. [Res. 260325 (03/26/25); Res. 280324A (03/28/24); Res. 061293 (12/06/93) § 7.2. Formerly 3.24R.380]

Chapter 3.24RTRIBAL EMPLOYMENT RIGHTS – INDIAN PREFERENCE REGULATIONS

3.24R.010 Declaration of policy.