California refused an exemption from the state liquor licensing scheme and she filed suit in U.S. District Court.

The District Court dismissed the suit, holding that Rehner was required to have a state license under 18 U.S.C.

[2] The Court of Appeals reversed, holding that § 1161 preempted state law over tribal liquor sales in Indian country.

Here the application of the state liquor laws is specifically authorized by Congress and does not interfere with federal policies concerning the reservation.

[4] The decision of the Ninth Circuit was reversed and remanded for action in compliance with the Court's opinion.