[Federal Register Volume 62, Number 241 (Tuesday, December 16, 1997)]
[Proposed Rules]
[Pages 65775-65777]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-32662]


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NATIONAL INDIAN GAMING COMMISSION

25 CFR Part 514


Annual Fees Payable By Indian Gaming Operations

AGENCY: National Indian Gaming Commission.

ACTION: Proposed rule.

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SUMMARY: The National Indian Gaming Commission is proposing to amend 
its fee regulations to add class III gaming revenues to the assessable 
gross revenue base, increase the total amount of fees that can be 
imposed, and provide for an exemption for self-regulated tribes such as 
the Mississippi Band of Choctaw. This action is being taken pursuant to 
recent amendments to the Indian Gaming Regulatory Act. The primary 
effect of this action is to increase the funding for the National 
Indian Gaming Commission.

DATES: Comments must be submitted on or before January 15, 1998.

ADDRESSES: Comments may be mailed to: Fee Regulation Comments, National 
Indian Gaming Commission, 1441 L Street, N.W., Suite 9100, Washington, 
DC 20005, delivered to that address between 8:30 a.m. and 5:30 p.m., 
Monday through Friday, or faxed to 202/632-7066 (this is not a toll-
free number). Comments received may be inspected between 9 a.m. and 
noon, and between 2 p.m. and 5 p.m.

FOR FURTHER INFORMATION CONTACT:
Fred W. Stuckwisch at 202/632-7003; fax 202/632-7066 (these are not 
toll-free numbers).

SUPPLEMENTARY INFORMATION: The Indian Gaming Regulatory Act (IGRA), 
enacted on October 17, 1988, established the National Indian Gaming 
Commission (Commission). The Commission is charged with, among other 
things, regulating gaming on Indian lands. Pursuant to recent 
amendments to the IGRA, these fee regulations are being amended to:
    (1) Add class III gaming revenues to the assessable gross revenue 
base,
    (2) Increase the total amount of fees that can be imposed, and
    (3) Provide an exemption for self-regulated tribes such as the 
Mississippi Band of Choctaw.
    As a result, gaming operations offering only class III games must 
begin reporting and paying fees, and gaming operations offering both 
class II and III games must begin reporting and paying fees on their 
class III revenues.
    The Commission has adopted a 30 day comment period for this 
proposed rule because (1) the basic rule has been in effect for six (6) 
years, (2) comments were received and considered before the basic rule 
was adopted, and (3) it is important that the increased funding for the 
Commission as enacted by Congress be implemented as soon as possible.
    The purpose of these regulations is to implement those portions of 
IGRA that provide for the payment of fees by gaming operations and for 
the collection and use of such fees by the Commission. Gaming 
operations are the economic entities that are licensed by a tribe, 
operate the games, receive the revenues, issue the prizes, and pay the 
expenses. Gaming operations may be operated by a tribe directly, by a 
management contractor, or in the case of certain grandfathered class II 
gaming operations, by an individual owner/operator.
    These regulations provide for a system of fee assessment and 
payment that is self-administered by the gaming operations. Briefly, 
the Commission adopts and communicates the assessment rates; the gaming 
operations apply those rates to their revenues, compute the fees to be 
paid, and report and remit the fees to the Commission on a quarterly 
basis.
    Annual fees are payable quarterly each calendar year based on the 
previous calendar year's class II and III assessable gross revenues 
from the gaming operations.

[[Page 65776]]

    The Commission will adopt preliminary annual fee rate(s) during the 
first quarter of each calendar year and final annual fee rate(s) for 
that year during the fourth quarter. Separate rates may be established 
for assessable gross revenue amounts under $1,500,000 (1st tier) and 
amounts over $1,500,000 (2nd tier). The rates when adopted will be 
published in the Federal Register.
    Under the proposed rule, self-regulated tribes such as the 
Mississippi Band of Choctaw will be exempt from the payment of fees 
pursuant to the fiscal year 1998 Interior Appropriations Act. The 
definitions of self-regulation and self-regulated and the requirements 
for obtaining a certificate of self-regulation and designation as self-
regulated will be developed and added to the regulations in later 
rulemakings.
    Gaming operations are to apply the rates adopted to their 
assessable gross revenues from the preceding calendar year to determine 
to amount of fees to be paid. The gaming operations are to report the 
amounts of assessable gross revenues, the fees to be paid, and their 
calculations to the Commission when they remit their quarterly 
payments. Remittances and reports are due no later than March 31, June 
30, September 30, and December 31, of each calendar year.
    Examples of computations are included in the regulations.
    By passing the fees on the previous year's assessable gross 
revenues, sufficient time is provided to the gaming operations to 
finalize and submit adjusted numbers before the end of the third 
quarter of the calendar year. Furthermore, by providing for the 
adoption of preliminary and final rates by the Commission, it is 
intended that sufficient time be provided the Commission to ascertain 
the assessable gross revenue base before finalizing the rates for each 
calendar year.
    These regulations are applicable to all gaming operations under the 
jurisdiction of the Commission. New gaming operations (with no gaming 
revenues generated in the previous calendar year) must file reports 
quarterly even though no fees will be due.
    Penalties and interest may be assessed for failures to file 
quarterly statements and to pay fees when due, and required approvals 
may be withheld, denied or revoked for failures to pay fees, penalties 
and interest.

Regulatory Flexibility Act

    This proposed rule will not have a significant economic impact on a 
substantial number of small business entities under the Regulatory 
Flexibility Act (5 U.S.C. 601 et seq.). The additional entities 
becoming subject to these regulations as a result of the changes now 
being made are generally larger than those entities presently covered. 
Furthermore, the fees that will be paid by the entities presently 
covered will be less than the fees they are presently paying.

National Environmental Policy Act

    The Commission has determined that this proposed rule does not 
constitute a major Federal action significantly affecting the quality 
of the human environment and that no detailed statement is required 
pursuant to the National Environmental Policy Act of 1969.

Tadd M. Johnson,
Chairman, National Indian Gaming Commission.

List of Subjects in 25 CFR Part 514

    Gambling, Indians-lands, Reporting and recordkeeping requirements.

    Accordingly, 25 CFR Part 514 is proposed to be amended as follows:

PART 514--FEES

    1. The authority for Part 514 continues to read as follows:

    Authority: 25 U.S.C. 2706, 2708, 2710, 2717, 2717a.

    2. Section 514.1 is amended by revising paragraphs (a) introductory 
text, (a)(4), (b) introductory text, (b)(4), (c) introductory text, 
(c)(1), (c)(2), (c)(5) introductory text, (c)(8), (d) introductory 
text, and (g) and by adding paragraph (a)(6), to read as follows:


Sec. 514.1   Annual Fees.

    (a) Each gaming operation under the jurisdiction of the Commission 
shall pay to the Commission annual fees as established by the 
Commission. The Commission, by a vote of not less than two of its 
members, shall adopt the rates of fees to be paid.
* * * * *
    (4) The rates of fees imposed shall be--
    (i) No more than 2.5 percent of the first $1,500,000 (1st tier), 
and
    (ii) No more than 5 percent of amounts in excess of the first 
$1,500,000 (2nd tier) of the assessable gross revenues from each gaming 
operation regulated by the Commission.
* * * * *
    (6) If a tribe is determined to be self-regulated pursuant to the 
provisions of 25 U.S.C. 2717(a)(2)(C), no fees shall be imposed.
    (b) For purposes of computing fees, assessable gross revenues for 
each gaming operation are the annual total amount of money wagered on 
class II and III games, admission fees (including table or card fees), 
less any amounts paid out as prizes or paid for prizes awarded, and 
less an allowance for amortization of capital expenditures for 
structures.
* * * * *
    (4) All class II and III revenues from gaming operations are to be 
included.
    (c) Each gaming operation regulated by the Commission shall file 
with the Commission quarterly a statement showing its assessable gross 
revenues for the previous calendar year.
    (1) These quarterly statements shall show the amounts derived from 
each type of game, the amounts deducted for prizes, and the amounts 
deducted for the amortization of structures;
    (2) These quarterly statements shall be filed no later than March 
31, June 30, September 30, and December 31, of each calendar year the 
gaming operation is subject to the jurisdiction of the Commission, 
beginning in September 1991. Any changes or adjustments to the previous 
year's assessable gross revenue amounts from one quarter to the next 
shall be explained.
* * * * *
    (5) Each gaming operation shall determine the amount of fees to be 
paid and remit them with the statement required in paragraph (c) of 
this section. The fees payable shall be computed using--
* * * * *
    (8) Quarterly statements, remittances and communications about fees 
shall be transmitted to the Commission at the following address: Office 
of Finance, National Indian Gaming Commission, 1441 L Street, N.W., 
Suite 9100, Washington, DC 20005. Checks should be made payable to the 
National Indian Gaming Commission (do not remit cash).
* * * * *
    (d) The total amount of all fees imposed during any fiscal year 
shall not exceed $8,000,000. The Commission shall credit pro-rata any 
fees collected in excess of this amount against amounts otherwise due 
at the end of the quarter following the quarter during which the 
Commission makes such determination.
* * * * *
    (g) The information collection requirements contained in paragraph 
(c) of this section have been approved by the Office of Management and 
Budget under 44 U.S.C. 3501 et seq. and assigned clearance number 3200-
0011. The information is being collected to determine the assessable 
gross revenues of each gaming operation and the

[[Page 65777]]

aggregate assessable gross revenues of all gaming operations. The 
information will be used to set and adjust fee rates and to verify the 
computations of fees paid by each gaming operation. Response is 
mandatory.

[FR Doc. 97-32662 Filed 12-15-97; 8:45 am]
BILLING CODE 7565-01-M