AGO 1995-024.

• Case Date: August 24, 1995
• Court: Connecticut

Connecticut Attorney General Opinions 1995. AGO 1995-024. August 24, 1995Opinion No. 1995-024Hon. John P. BurkeState of ConnecticutDepartment of Banking260 Constitution PlazaHartford, CT 06103 Dear Commissioner Burke: You have asked this office for an opinion regarding your authority to approve and to regulate a branch (the "Branch") of a Connecticut bank (the "Bank") to be established in Foxwoods Casino (the "Casino") on the Mashantucket Pequot Reservation (the "Reservation") in Ledyard, Connecticut. You received an inquiry from the Bank, which would like to locate a branch inside the Casino subject to a five-year lease. The Bank would have an "exclusive agreement" with the Mashantucket Pequot Tribe (the "Tribe") to be the sole provider of banking services on the Reservation. The Branch would offer standard services to the general public, and standard services at a discount to members of the Tribe and its employees. No mortgages would be offered, although unsecured lending and auto loans would be available. Apparently, the Tribe is prepared to adopt any tribal resolutions or execute any agreements necessary to facilitate approval. In particular, you requested our opinion on the following issues: (1) Whether a branch of a Connecticut bank established on the Reservation would be "in this state" within the meaning of Conn. Gen. Stat. § 36a-145(b) or, alternatively whether a branch would be "outside of this state" within the meaning of Public Act 95-155 "An Act Concerning Interstate Banking and Branching"; (2) Whether you are preempted by federal law from regulating a branch of a Connecticut bank established on the Reservation; and (3) Whether the Tribe and its enterprises, particularly the Mashantucket Pequot Gaming Enterprise (the "Enterprise"), may waive its sovereign immunity with respect to suits arising from contractual issues flowing from the establishment and operation of a branch bank. Although you have not raised the issue of the impact of Conn. Gen. Stat. § 31-57e, "An Act Concerning the Rights of Employees of Federally Recognized Indian Tribes," (the "Employment Rights Act"), this Act has some bearing upon your Department's proposed activities in connection with the Branch Bank and this opinion, therefore, will address this issue as well. We conclude that the proposed Bank Branch would be within this state, that your authority to regulate the branch would not be preempted by federal law, and that the establishment of such a branch would be exempt from, and thus not be barred by, Conn. Gen. Stat. §31-57e. With respect to your first question, Title 36a of the Connecticut General Statutes contains the "Banking Law of Connecticut", which laws are "applicable to all Connecticut banks ...." Conn. Gen. Stat. § 36a-1. A "Connecticut bank" is defined as "a bank and trust company, savings bank or savings and loan association chartered or organized under the laws of this state." Conn. Gen. Stat. § 36a-2(11). Pursuant to Conn. Gen. Stat. § 36a-145(b)(1): "With the approval of the commissioner, any Connecticut bank may establish a branch in this state." (Emphasis added.) The question, therefore, is whether a branch of a Connecticut bank located on the Reservation would be "in this state" as contemplated by Section 36a-145(b)(1). While federally recognized Indian tribes retain attributes of sovereignty over their members and reservation, "tribal lands within the boundaries of state or organized territories have always been considered to be geographically part of the respective state or territory." Cohen, Felix S., Handbook of Federal Indian Law (1982 Fed.) p. 649. Federal and state cases and statutes and regulations support a finding that the Reservation is "in this state." The Tribe received federal recognition in 1983 by an act of Congress entitled the Indian Land Claims Settlement Act of 1983 (the "Settlement Act"). 25 U.S.C. §§ 1751 et seq. The Settlement Act also established the boundaries of the Tribe's federal Reservation. Section 1752(7) of the Settlement Act defines the Reservation as: "The existing reservation of the Tribe as defined by Chapter 824 of the Connecticut General Statutes and any settlement lands taken in trust by the United States for the Tribe." Conn. Gen. Stat. § 47-63 in turn defines the Tribe's reservation as: "The...