[Federal Register Volume 67, Number 78 (Tuesday, April 23, 2002)]
[Proposed Rules]
[Page 19713]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 02-9861]


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NATIONAL INDIAN GAMING COMMISSION

25 CFR Part 542

RIN 3141-AA24


Minimum Internal Control Standards

AGENCY: National Indian Gaming Commission.

ACTION: Notice of certification of no significant impact under the 
Regulatory Flexibility Act; request for comments.

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SUMMARY: The National Indian Gaming Commission (Commission) is 
reopening the comment period on our proposed revisions to the Minimum 
Internal Control Standards, 66 Fed. Reg. 66500 (December 26, 2001) for 
the limited purpose of giving small entities an opportunity to comment 
on the Commission's certification that the proposed revisions will not 
have a significant economic impact on them.

DATES: Comments must be received on or before May 23, 2002.

ADDRESSES: Mail comments to: Comments on Regulatory Flexibility Act on 
MICS, National Indian Gaming Commission, 1441 L St., NW, Suite 9100, 
Washington, D.C. 20005, Attn.: Michele F. Mitchell. Comments and 
requests may also be sent by facsimile to 202-632-7066.

FOR FURTHER INFORMATION CONTACT: Michele F. Mitchell, at 202/632-7003 
or, by fax, at 202/632-7066 (these are not toll-free numbers).

SUPPLEMENTARY INFORMATION: The Commission published proposed revisions 
to its existing Minimum Internal Control Standards on December 26, 
2001. 66 FR 66500. The Commission received numerous comments on the 
proposed rule. As a result of one of the comments received, the 
Commission determined that certain Indian gaming operations, if they 
meet specific definitional criteria, may qualify as ``small entities,'' 
under the Regulatory Flexibility Act (RFA). 5 U.S.C. 601(3).
    Section 603 of the RFA, requires agencies to prepare an analysis 
describing the impact of proposed rules on small entities. In the 
alternative, if an agency determines that its rule will not have a 
significant impact on a substantial number of small entities, it may 
certify to this determination and an analysis is not required. (5 
U.S.C. 605(b)).
    There are approximately 315 Indian gaming operations across the 
country. We estimate that approximately 100 of the operations have 
gross revenues of less than $5 million. Of these, approximately 50 
operations have gross revenues of under $1 million. Since the proposed 
revisions will not apply to gaming operations with gross revenues under 
$1 million, only 50 small operations may be affected.
    The proposed rule will not have a significant economic affect on 
these operations because gaming operations must have internal controls 
to protect their assets. The costs involved in implementing these 
controls are part of the regular business costs incurred by such an 
operation.
    The Commission's regulations require tribes to adopt minimum 
standards, below which, the assets of the gaming operation would be 
placed at an unacceptable risk of loss. We believe that many Indian 
gaming operations have already implemented internal control standards 
which are more stringent than those contained in these regulations.
    Under the proposed revisions, small gaming operations grossing 
under $1 million are exempted from MICS compliance. Tier A facilities 
(those with gross revenues between $1 and $5 million) are subject to 
the yearly requirement that independent certified public accountant 
testing occur. The purpose of this testing is to measure the gaming 
operation's compliance with the tribe's minimum internal control 
standards. The cost of compliance with this requirement for a small 
gaming operation is estimated at between $3,000 and $5,000. The cost of 
this report is minimal and does not create a significant economic 
effect on gaming operations. What little impact exists is further 
offset because other regulations require a yearly independent financial 
audit that can be conducted at the same time. The results of the MICS 
audit are used by Commission and the tribes to measure compliance with 
the standards. For these reasons, the Commission has concluded that the 
proposed rule will not have a significant economic impact on those 
small entities subject to the rule.
    If your gaming operation qualifies as a small entity and you would 
like to comment on the Commission's conclusions, please submit a 
comment explaining how and to what degree these proposed revisions 
affect you and the extent of the economic impact on your business. The 
Commission will consider any comments received prior to issuing a final 
rule. Comments addressing the substantive provisions of the proposed 
revisions to 25 CFR part 542 will not be considered at this time.
    The Commission will provide this certification to the Chief Counsel 
for Advocacy of the Small Business Administration as required by 5 
U.S.C. 605(b).

    Dated: April 17, 2002.
Montie R. Deer,
Chairman.
Elizabeth L. Homer,
 Vice Chair.

Teresa E. Poust,
Commissioner.
[FR Doc. 02-9861 Filed 4-22-02; 8:45 am]
BILLING CODE 7565-01-P