[Federal Register Volume 74, Number 233 (Monday, December 7, 2009)]
[Unknown Section]
[Pages 64372-64373]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: X09-291207]


[[Page 64372]]




NATIONAL INDIAN GAMING COMMISSION (NIGC)



Statement of Regulatory Priorities
 The Indian Gaming Regulatory Act (IGRA or the Act), 25 U.S.C. 2701 et 
seq., was signed into law on October 17, 1988. The Act established the 
National Indian Gaming Commission (NIGC). The stated purpose of the 
NIGC is to regulate the operation of gaming by Indian tribes as a means 
of promoting tribal economic development, self-sufficiency, and strong 
tribal governments. It is the NIGC's intention to provide regulation of 
Indian gaming to adequately shield it from organized crime and other 
corrupting influences, to ensure that each Indian tribe is the primary 
beneficiary of its gaming operation(s), and to assure that gaming is 
conducted fairly and honestly by both the operator and players.
 The regulatory priorities for the next fiscal year reflect the NIGC's 
commitment to uphold the principles of IGRA. As the Indian gaming 
industry continues to grow and evolve, the NIGC must be continually 
attentive to reviewing and revising its existing regulations to ensure 
that they do not become outdated and lose their usefulness. To that 
end, the NIGC is currently revising its existing regulations concerning 
background investigations and licenses to ensure the continued 
integrity of the Indian gaming industry, and that background 
investigations for key employees and primary management officials are 
performed as thoroughly and efficiently as possible, and are updated on 
a regular, ongoing basis. In addition, the NIGC is currently revising 
its existing regulations on minimum internal control standards to 
ensure that they remain up to date, and continue to adequately protect 
against the risks inherent in gambling, especially as gaming technology 
continues to evolve.
 As new developments and trends of concern to effective gaming 
regulation are most often first perceived and addressed on the gaming 
floors and in the backs of the gaming houses themselves, it is often 
that the all-day, everyday tribal gaming regulators present at the 
tribal gaming facilities are the first to identify weaknesses in the 
gaming regulatory structure. To detect these concerns as early as 
possible, the NIGC has been innovative in using active outreach efforts 
to inform its policy development and its rulemaking efforts. For 
example, the NIGC has had great success in using regional meetings, 
both formal and informal, with tribal governments to gather views on 
current and proposed NIGC initiatives. The NIGC anticipates that these 
ongoing consultations with regulated tribes will continue to play an 
important role in the development of the NIGC's rulemaking efforts.
_______________________________________________________________________



NIGC

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                          PROPOSED RULE STAGE

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176. TRIBAL BACKGROUND INVESTIGATION SUBMISSION REQUIREMENTS AND TIMING

Priority:


Other Significant


Legal Authority:


25 USC 2706(b)(3); 25 USC 2706(b)(10); 25 USC 2710(b)(2)(F)(ii); 25 USC 
2710(c)(1)-(2); 25 USC 2710(d)(A)


CFR Citation:


25 CFR 556; 25 CFR 558


Legal Deadline:


None


Abstract:


It is necessary for the National Indian Gaming Commission (NIGC) to: 
modify certain regulations concerning background investigations and 
licensing to streamline the process for submitting information; ensure 
that the process complies with the Indian Gaming Regulatory Act (IGRA); 
and distinguish the requirements for temporary and permanent licenses.


Statement of Need:


Modifications to specific background investigation and licensing 
regulations are needed to ensure compliance with the Indian Gaming 
Regulatory Act (IGRA), which mandates that certain notifications be 
submitted to the Commission. Modifications are also needed to reduce 
the quantity of documents submitted to the Commission under these 
regulations and to distinguish the requirements for temporary and 
permanent licenses.


Summary of Legal Basis:


It is the goal of NIGC to provide regulation of Indian gaming to shield 
it from organized crime and other corrupting influences as well as to 
assure that gaming is conducted fairly and honestly. (25 U.S.C. 2702). 
The Commission is charged with the responsibility of monitoring gaming 
conducted on Indian lands. (25 U.S.C. 2706(b)(1)). IGRA expressly 
authorizes the Commission to ``promulgate such regulations and 
guidelines as it deems appropriate to implement the provisions of the 
(Act).'' (25 U.S.C. 2706(b)(10)). Sections 2710(b)(2)(F) and 2710(d)(A) 
require Tribes to have an adequate system for background investigations 
of primary management officials and key employees and inform the 
Commission of the results of those investigations. Under section 
2710(c), the Commission may also object to licenses or require a tribe 
to suspend a license. The Commission relies on these sections of the 
statute to authorize the modification of the background and licensing 
regulations to ensure compliance with IGRA, reduce the quantity of 
documents submitted to the Commission, and distinguish the requirements 
for temporary and permanent licenses.


Alternatives:


If the Commission does not modify these regulations to reduce the 
quantity of documents submitted under them, tribes will continue to be 
required to submit these documents to the Commission. Further, to 
ensure compliance with IGRA, the modifications mandating notifications 
to the Commission regarding the results of background checks and the 
issuance of temporary and permanent gaming licenses must be made.


Anticipated Cost and Benefits:


These modifications to the background investigation and licensing 
regulations will reduce the cost of regulation to the Federal 
Government by reducing the amount of documents received from tribes 
that must be processed and retained. Further, these modifications will 
reduce the quantity of documents that tribes are required to submit to 
the NIGC, which will result in a cost savings to the tribes. There are 
minimal anticipated cost increases to tribal governments due to 
additional notifications to the NIGC.


Risks:


There are no known risks to this regulatory action.


Timetable:
_______________________________________________________________________
Action                            Date                        FR Cite

_______________________________________________________________________
NPRM                            06/00/10

Regulatory Flexibility Analysis Required:


No

[[Page 64373]]

Government Levels Affected:


Tribal


Agency Contact:
Heather M Nakai
Staff Attorney
National Indian Gaming Commission
1441 L Street NW
Suite 9100
Washington, DC 20005
Phone: 202 632-7003
Fax: 202 632 7066
RIN: 3141-AA15
_______________________________________________________________________



NIGC



177. CLASS II AND CLASS III MINIMUM INTERNAL CONTROL STANDARDS

Priority:


Other Significant


Legal Authority:


25 USC 2706(b)(10); 25 USC 2706(b)(1)-(4); 25 USC 2710(d)(3)(C)(vi); 25 
USC 2710(d)(7)(B)(vii)


CFR Citation:


25 CFR 542; 25 CFR 543


Legal Deadline:


None


Abstract:


The National Indian Gaming Commission is revising the existing minimum 
internal control standards (MICS) to reflect the changing technologies 
in the industry. The Commission will routinely revise the MICS in 
response to these changes. It is also continuing with its plan to 
clarify the regulatory structure by segregating Class II MICS from 
Class III.


Statement of Need:


The rapid evolution of gaming technology and regulatory structures in 
Indian gaming brings new risks and requires a distinction between the 
control standards for Class II and Class III gaming. Periodic review 
and revision of existing standards are necessary to ensure that they 
remain relevant and continue to adequately protect tribal gaming assets 
and the interests of stakeholders and the gaming public.


Summary of Legal Basis:


It is the goal of NIGC to provide regulation of Indian gaming to shield 
it from organized crime and other corrupting influences as well as 
assuring that gaming is conducted fairly and honestly. (25 U.S.C. 
2702). The Commission is charged with the responsibility of monitoring 
gaming conducted on Indian lands. (25 U.S.C. 2706(b)(1)). This 
responsibility includes inspecting and examining the premises located 
on Indian lands on which Class II gaming is conducted; and auditing all 
papers, books, and records respecting gross revenues of Class II gaming 
conducted on Indian lands and any other matters necessary to carry out 
the duties of the Commission under this chapter. (25 U.S.C. 
2706(b)(2),(4)). With regard to Class III gaming, section 
2710(d)(3)(C)(vi) allows Tribal-State compacts to include negotiated 
provisions governing the standards for operation of gaming activity, 
and where states and tribes cannot reach agreement, section 
2710(d)(7)(B)(vii) allows the Secretary of the Interior to establish 
procedures in place of a compact whereby a particular tribe may conduct 
Class III gaming. In each of the procedures approved to date, the 
Secretary has delegated the responsibility for gaming standards and 
oversight to the NIGC. The Commission relies on these sections of the 
statute to authorize the promulgation of MICS to ensure integrity in 
tribal gaming.


Alternatives:


If the Commission does not periodically update the MICS, the 
regulations that govern tribal gaming will not address changing 
technology and gaming methods.


Anticipated Cost and Benefits:


Updated MICS will aid tribal governments in the regulation of their 
gaming activities.


Risks:


There are no known risks to this regulatory action.


Timetable:
_______________________________________________________________________
Action                            Date                        FR Cite

_______________________________________________________________________
First NPRM                      12/01/04                    69 FR 69847
Second NPRM                     03/10/05                    70 FR 11893
Final Action on First 
    Rule                        05/04/05                    70 FR 23011
Final Action on Second 
    Rule                        08/12/05                    70 FR 47097
Third NPRM                      11/15/05                    70 FR 69293
Final Action on Third 
    Rule (1)                    05/11/06                    71 FR 27385
Fourth NPRM                     12/00/09

Regulatory Flexibility Analysis Required:


No


Government Levels Affected:


Tribal


Agency Contact:
Jennifer Ward
Staff Attorney
National Indian Gaming Commission
1441 L Street NW.
Suite 9100
Washington, DC 20005
Phone: 202 632-7003
Fax: 202 632-7066
RIN: 3141-AA27
BILLING CODE 7565-01-S