[Federal Register Volume 78, Number 17 (Friday, January 25, 2013)]
[Rules and Regulations]
[Pages 5276-5281]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2013-01315]
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DEPARTMENT OF THE INTERIOR
National Indian Gaming Commission
25 CFR Parts 556 and 558
RIN 3141-AA15
Tribal Background Investigations and Licensing
AGENCY: National Indian Gaming Commission, Interior.
ACTION: Final rule.
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SUMMARY: The National Indian Gaming Commission (NIGC or Commission) is
amending certain NIGC regulations concerning background investigations
and licenses to streamline the submission of documents to the
Commission; to ensure that two notifications are submitted to the
Commission in compliance with the Indian Gaming Regulatory Act (IGRA);
and to clarify the regulations regarding the issuance of temporary and
permanent gaming licenses.
DATES: Effective Date: February 25, 2013.
FOR FURTHER INFORMATION CONTACT: John Hay, National Indian Gaming
Commission, 1441 L Street NW., Suite 9100, Washington, DC 20005.
Telephone: 202-632-7009.
SUPPLEMENTARY INFORMATION:
I. Background
The Indian Gaming Regulatory Act (IGRA or Act), Public Law 100-497,
25 U.S.C. 2701 et seq., was signed into law on October 17, 1988. The
Act establishes the NIGC and sets out a comprehensive framework for the
regulation of gaming on Indian lands. On November 18, 2010, the
Commission issued a Notice of Inquiry and Notice of Consultation (NOI)
advising the public that the NIGC was conducting a comprehensive review
of its regulations and requesting public comment on which of its
regulations were most in need of revision, in what order the Commission
should review its regulations, and the process NIGC should utilize to
make revisions. 75 FR 70680 (Nov. 18, 2010). On April 4, 2011, after
holding eight consultations and reviewing all comments, NIGC published
a Notice of Regulatory Review Schedule (NRR) setting out a consultation
schedule and process for review. 76 FR 18457. The Commission's
regulatory review process established a tribal consultation schedule
with a description of the regulation groups to be covered at each
consultation. These parts 556 and 558 were included in this regulatory
review.
II. Previous Rulemaking Activity
The Commission consulted with tribes as part of its review of parts
556 and 558. Tribal consultations were held in every region of the
country and were attended by numerous tribes, tribal leaders or their
representatives. After considering the comments received from the
public and through tribal consultations, the Commission published a
Notice of Proposed Rulemaking regarding background and investigation
licensing procedures on December 22, 2011.
III. Review of Public Comments
In response to our Notice of Proposed Rulemaking, published
December 22, 2011, 76 FR 79567, we received the following comments.
General Comments
Comment: Many commenters supported the formalization of the ``pilot
program'' because it reduces the quantity of documents a tribe must
submit to the NIGC, formalizes a streamlined process, and is a cost
effective measure.
Response: The Commission agrees and has decided to amend parts 556
and 558 to implement the pilot program.
Comment: Many commenters generally support the changes to part 558.
Response: The Commission has decided to go forward with many of the
amendments set forth in the proposed rule.
Comment: One commenter supported the agency's efforts to improve
tribal access to background investigation materials but was puzzled by
the suggestion that the Commission presently lacks ``sufficient
resources and technology'' to make this information available in a
secure format. The commenter believes that the necessary technology is
available and the Commission resources would be minimal. Further, the
commenter urges the Commission to develop a plan and a timeline for
implementing such a system.
Response: The Commission will continue to review this issue closely
to determine whether it is feasible to make background investigation
information available in a secure format.
Comment: One commenter stated that there is potential for confusion
and/or possible non-compliance when attempting to reconcile the
requirements in 556.1, 556.6(b)(2), 558.1, and 558.3(b), because the
perimeters of temporary versus permanent licenses are unclear in these
sections. The commenter suggested that a revision to the regulations
may not be necessary; however, additional guidance may be beneficial
for applying the regulatory sections.
Response: The Commission reviewed this provision and believes it is
sufficiently clear. The Commission will examine whether it is
appropriate to issue additional guidance for those sections.
Comment: One commenter inquired whether a tribe would be out of
compliance with 556.2(b)(2) and/or 558.3(b) if it allows for temporary
employees to be used and/or issues temporary licenses for a period of
90 days or less and it hires such temporary employee or individual with
a temporary license as a key employee or primary management official
during that time period.
Response: Temporary licenses are used by tribes that choose to have
individuals working in their gaming facilities while the individuals
are undergoing the background investigation and licensing process. No
key employee or primary management official can work at a gaming
facility for longer than 90 days without a gaming license issued
pursuant to parts 556 and 558. The tribe should implement the
regulatory licensing process for a key employee or primary management
official simultaneously with issuing a temporary license to ensure that
a
[[Page 5277]]
permanent license is issued within 90 days of the individual beginning
work.
556.4 Background Investigations
Comment: Two commenters supported the revision to 556.4(b) to
clarify that a tribe may use investigative materials obtained from the
NIGC that were submitted by another tribe. Specifically, one commenter
noted that information regarding an applicant's prior gaming licenses
and disciplinary actions in relation to previously held licenses can be
of great benefit to tribal governments in determining the suitability
of an applicant and, among other things, can help verify the
information provided in a license application.
Response: The Commission agrees and has adopted the amendment in
the proposed rule.
Comment: Several commenters contended that requesting that an
applicant provide a list of ``associations to which they pay dues'' is
overly broad and unnecessary, and the Commission should not add this to
the regulation concerning background investigation applications. One
commenter disagrees, because a requirement to list and disclose all
such associations provides valuable information concerning an
applicant's suitability.
Response: The Commission agrees with the majority of commenters
that the addition of a requirement to provide a list of associations is
unnecessary, because tribes may require any additional information they
deem necessary through 556.4(a)(13). This broad provision should be
sufficient for tribes to request a list of associations as well as any
other information that they deem necessary for purposes of a background
investigation.
Comment: One commenter requested that the NIGC consider deleting
556.4(c) mandating that tribal investigators ``shall keep confidential
the identity of each person interviewed in the course of an
investigation,'' because the rules of investigatory processes should be
determined by each tribal jurisdiction. Further, the commenter is
concerned that this provision may violate due process in certain tribal
jurisdictions because an applicant would be denied the opportunity to
confront an accuser.
Response: IGRA requires background investigations for primary
management officials and key employees. Accordingly, such
investigations are conducted pursuant to Federal and tribal law.
Confidentiality is an existing requirement under the current
regulations and pilot program. Section 556.4(c) requires tribal gaming
commissions to keep individual identities confidential to promote
candor in interviews to determine an applicant's eligibility for a
license. Confidentiality facilitates an interviewee's willingness to
provide information during the process. A lack of candor in interviews
could needlessly prolong the background investigation process and
impact both tribal and federal resources. The Commission feels that the
need for candid information outweighs any due process concerns.
Comment: One commenter believed that the NIGC does not want to be
notified every time a tribe does not license an individual because
there are potentially thousands of applicants each year that a tribe
does not license. The commenter explained that these applicants may
have moved or found other employment before the background was
completed or requested withdrawal for any number of reasons.
Response: The Commission appreciates the potential for a large
number of key employee and primary management official applicants a
tribe may receive. However, the NIGC often receives notice regarding an
applicant long before a complete application is submitted. Once a
person has been entered into the NIGC system for fingerprints, a record
is automatically created. If the NIGC does not receive notification
that licensing action was not taken as to such persons, it will not
have accurate and up to date information. Accurate information
regarding the results of individuals seeking employment as key
employees or primary management officials enhances the NIGC's ability
to provide current investigative information as to particular
individuals. Consequently, notifying the Commission of the results of a
license application serves to maintain the integrity of Indian gaming.
Comment: Two commenters recommended that the Commission eliminate
the requirement that background investigations include personal
references.
Response: Personal references help to implement IGRA's requirement
that eligibility determinations include an evaluation of an
individual's reputation, habits, and associations. See 25 U.S.C.
2710(b)(2)(F). Such an evaluation is furthered by interviews conducted
beyond the context of documented business relationships.
Comment: One commenter supported a change to 556.4(b) that would
allow tribes to rely on notice of results of an applicant already on
file at NIGC and to simply update the investigation and investigation
report, because this would save tribal resources.
Response: The Commission understands the need to conserve tribal
resources and agrees with this comment. Section 556.4(b) provides for a
tribe to rely on materials on file with NIGC or with a previous tribal
investigative body and to update those materials.
556.5 Tribal Eligibility Determination
Comment: Two commenters stated that the NIGC should reconsider its
decision against replacing the term ``eligibility'' with
``suitability'' in 556.5. The commenter proposed that the standard for
issuing a gaming license is based on the suitability of the applicant
and the standard for hiring is based on the eligibility of the
applicant and that hiring and licensing are done by different tribal
entities.
Response: The Commission disagrees in light of IGRA's language,
which specifically requires that background investigation processes
include an eligibility determination. See 25 U.S.C. 2710(b)(2)(F)(ii).
556.6 Report to the Commission
Comment: One commenter stated that the proposed regulation would
require the tribe to send the notice of results before 60 days of
employment and also requires a tribe to send a licensing decision
notification prior to 90 days of employment. The commenter believes
that the 60 day requirement should be eliminated, leaving only the 90
day requirement.
Response: IGRA requires two notifications: The first involves
notifying the Commission of the results of the background check before
the issuance of a license, and the second involves notifying the
Commission of the issuance of the license. See 25 U.S.C.
2710(b)(2)(F)(ii)(I) and (III). The Commission requires tribes to
submit the notice of results within 60 days of employment to provide
the Commission an opportunity to object while the tribe is still
considering issuing the license. IGRA dictates that the NIGC has 30
days to provide objections to a tribe regarding the issuance of a
gaming license. See 25 U.S.C. 2710(c)(1). This 30 day time period,
prior to the 90 day deadline for issuing a license, ensures that the
NIGC's objections will be received prior to the issuance of a permanent
license. See 25 U.S.C. 2710(c)(2).
Comment: One commenter recommended that the Commission adopt a
single form to be used for the notice of results (NOR).
Response: After careful review of this issue, the Commission has
determined not to adopt a single form to be used for the notice of
results. This will allow tribes greater flexibility over how the
[[Page 5278]]
information is submitted to the Commission.
Comment: One commenter stated that submissions made pursuant to
558.3 for purposes of the Indian Gaming Individuals Record System
(IGIRS) should be voluntary, not mandatory, because a mandatory
requirement exceeds the Commission's authority. Another commenter
believes that mandatory submissions are overly burdensome.
Response: The submissions to the IGIRS include the notice of
results of the background check, the eligibility determination, and the
notification of the licensing action. IGRA requires that tribes notify
the Commission of background check results and subsequently notify the
Commission of the issuance of a license. See 25 U.S.C.
2710(b)(2)(F)(ii)(I) and (III). Receipt of these submissions serves to
maintain the integrity of Indian gaming and promotes the ability of
tribal regulators to receive accurate information concerning key
employees and primary management officials.
558.1 Scope of This Part
Comment: Many commenters stated that they were pleased that the
Commission added language to 558.1 to clarify that the regulations ``do
not apply to any license that is intended to expire within 90 days of
issuance.''
Response: The Commission agrees and has decided to make this
addition.
558.3 Notification to NIGC of License Issuance and Retention
Obligations
Comment: Two commenters supported 558.3(c)(2), which requires a
tribe that does not license an applicant to forward the eligibility
determination and any investigative report ``to the Commission for
inclusion in the Indian Gaming Individuals Records System.'' However,
one commenter believes that this submission should be discretionary,
because a mandatory requirement would exceed NIGC's authority. Another
commenter believes that, although this is a useful resource, the
regulation should be voluntary instead of mandatory.
Response: IGRA, 25 U.S.C. 2710(b)(2)(F)(ii)(I) and (III), requires
tribes to submit results of background checks of key employees and
primary management officials to the Commission, as well as to notify
the Commission when licenses are issued to such employees. The
Commission agrees with commenters' suggestion that submitting the full
investigative report should be voluntary and, therefore, the submission
is now limited to eligibility determinations, notice of background
results, and licensing action notices.
Comment: One commenter suggested that the NIGC limit the
notifications to NIGC in 558.3(c) to require notification to NIGC only
if an applicant is unsuitable or has been denied a gaming license, by
adding language to 558.3(c) that states, ``(c) if a tribe denies an
applicant a license--'' or '' if a tribe finds an applicant unsuitable
for licensing--,'' thereby eliminating the requirement that tribes
notify the NIGC if an application is either incomplete or the
investigative process is otherwise not completed. Other commenters
stated that the requirement in 558.3(c) to notify NIGC if an applicant
is not licensed is overly burdensome and fails to recognize benign
reasons why a license is not issued.
Response: The Commission disagrees. The suggested limitation would
limit the NIGC's ability to provide accurate information on an
individual applicant. Often, an individual is identified in the NIGC
system before an application is complete or before the eligibility
determination is made because fingerprints are processed first. Without
information on every applicant, NIGC is unable to provide accurate
investigative information to gaming tribes. Thus, licensing information
on each applicant is necessary to ensure that accurate information is
disseminated.
Comment: A few commenters believed that determining the retention
period for applications, investigation reports, and eligibility
determinations should be a matter of tribal discretion and, therefore,
558.3(e) should be revised or removed.
Response: IGRA requires an adequate system to ensure that
background investigations are conducted and that oversight of primary
management officials and key employees is conducted on an ongoing
basis. 25 U.S.C. 2710(b)(2)(F). A purpose of IGRA is to provide a
statutory basis of gaming regulation by Indian tribes adequate to
shield them from organized crime and other corrupting influences. The
NIGC is tasked with creating regulations to implement IGRA. To
implement IGRA's requirements consistent with that purpose of the
legislation, the Commission believes that a three year minimum time
period is appropriate. An alternative approach, as set forth in the
current regulations, would be to provide the NIGC with all the
necessary information, eliminating the three year time period. However,
maintaining that approach would negate the positive aspects of the
pilot program, including the reduction of the submission burden on
tribes.
558.4 Notice of Information Impacting Eligibility and Licensee's Right
to a Hearing
Comment: One commenter stated that the word ``immediately'' in
558.4(b) should be replaced with ``promptly'' to give the tribe more
latitude, because the term ``promptly'' more closely conforms to the
language contained in IGRA.
Response: The Commission disagrees. IGRA's requirement that a tribe
``shall suspend the license'' indicates that the tribe should act
without delay. 25 U.S.C. 2710(c)(2). Therefore, IGRA provides no
latitude in proceeding with the suspension of the license.
Comment: One commenter suggested the term ``employment'' in
558.4(a) be changed to ``licensure,'' because a gaming commission
issues licenses and does not employ key employees or primary management
officials.
Response: The Commission carefully considered this issue and
disagrees with the comment because IGRA mandates that tribes have an
adequate system for assessing the eligibility of primary management
officials and key employees for ``employment.'' 25 U.S.C.
2710(b)(2)(F)(ii)(II).
Regulatory Matters
Regulatory Flexibility Act
The proposed rule will not have a significant impact on a
substantial number of small entities as defined under the Regulatory
Flexibility Act, 5 U.S.C. 601, et seq. Moreover, Indian Tribes are not
considered to be small entities for the purposes of the Regulatory
Flexibility Act.
Small Business Regulatory Enforcement Fairness Act
The proposed rule is not a major rule under 5 U.S.C. 804(2), the
Small Business Regulatory Enforcement Fairness Act. The rule does not
have an effect on the economy of $100 million or more. The rule will
not cause a major increase in costs or prices for consumers, individual
industries, Federal, State, local government agencies or geographic
regions, nor will the proposed rule have a significant adverse effect
on competition, employment, investment, productivity, innovation, or
the ability of the enterprises, to compete with foreign based
enterprises.
Unfunded Mandates Reform Act
The Commission, as an independent regulatory agency, is exempt from
compliance with the Unfunded Mandates Reform Act, 2 U.S.C. 1502(1); 2
U.S.C. 658(1).
[[Page 5279]]
Takings
In accordance with Executive Order 12630, the Commission has
determined that the proposed rule does not have significant takings
implications. A takings implication assessment is not required.
Civil Justice Reform
In accordance with Executive Order 12988, the Commission has
determined that the rule does not unduly burden the judicial system and
meets the requirements of sections 3(a) and 3(b)(2) of the Order.
National Environmental Policy Act
The Commission has determined that the 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, 42 U.S.C. 4321, et seq.
Paperwork Reduction Act
The information collection requirements contained in this rule were
previously approved by the Office of Management and Budget as required
by the Paperwork Reduction Act, 44 U.S.C. 3501, et seq., and assigned
OMB Control Number 3141-0003. The OMB control number expires on October
31, 2013.
List of Subjects in 25 CFR Parts 556 and 558
Gaming, Indian lands.
For the reasons discussed in the Preamble, the Commission 25 CFR
chapter III as follows:
0
1. Revise part 556 to read as follows:
PART 556--BACKGROUND INVESTIGATIONS FOR PRIMARY MANAGEMENT
OFFICIALS AND KEY EMPLOYEES
Sec.
556.1 Scope of this part.
556.2 Privacy notice.
556.3 Notice regarding false statements.
556.4 Background investigations.
556.5 Tribal eligibility determination.
556.6 Report to the Commission.
556.7 Notice.
556.8 Compliance with this part.
Authority: 25 U.S.C. 2706, 2710, 2712.
Sec. 556.1 Scope of this part.
Unless a tribal-state compact assigns sole jurisdiction to an
entity other than a tribe with respect to background investigations,
the requirements of this part apply to all class II and class III
gaming. The procedures and standards of this part apply only to primary
management officials and key employees. This part does not apply to any
license that is intended to expire within 90 days of issuance.
Sec. 556.2 Privacy notice.
(a) A tribe shall place the following notice on the application
form for a key employee or a primary management official before that
form is filled out by an applicant:
In compliance with the Privacy Act of 1974, the following
information is provided: Solicitation of the information on this
form is authorized by 25 U.S.C. 2701 et seq. The purpose of the
requested information is to determine the eligibility of individuals
to be granted a gaming license. The information will be used by the
Tribal gaming regulatory authorities and by the National Indian
Gaming Commission (NIGC) members and staff who have need for the
information in the performance of their official duties. The
information may be disclosed by the Tribe or the NIGC to appropriate
Federal, Tribal, State, local, or foreign law enforcement and
regulatory agencies when relevant to civil, criminal or regulatory
investigations or prosecutions or when pursuant to a requirement by
a tribe or the NIGC in connection with the issuance, denial, or
revocation of a gaming license, or investigations of activities
while associated with a tribe or a gaming operation. Failure to
consent to the disclosures indicated in this notice will result in a
tribe's being unable to license you for a primary management
official or key employee position.
The disclosure of your Social Security Number (SSN) is
voluntary. However, failure to supply a SSN may result in errors in
processing your application.
(b) A tribe shall notify in writing existing key employees and
primary management officials that they shall either:
(1) Complete a new application form that contains a Privacy Act
notice; or
(2) Sign a statement that contains the Privacy Act notice and
consent to the routine uses described in that notice.
(c) All license application forms used one-hundred eighty (180)
days after February 25, 2013 shall comply with this section.
Sec. 556.3 Notice regarding false statements.
(a) A tribe shall place the following notice on the application
form for a key employee or a primary management official before that
form is filled out by an applicant:
A false statement on any part of your license application may be
grounds for denying a license or the suspension or revocation of a
license. Also, you may be punished by fine or imprisonment (U.S.
Code, title 18, section 1001).
(b) A tribe shall notify in writing existing key employees and
primary management officials that they shall either:
(1) Complete a new application form that contains a notice
regarding false statements; or
(2) Sign a statement that contains the notice regarding false
statements.
(c) All license application forms used 180 days after February 25,
2013 shall comply with this section.
Sec. 556.4 Background investigations.
A tribe shall perform a background investigation for each primary
management official and for each key employee of a gaming operation.
(a) A tribe shall request from each primary management official and
from each key employee all of the following information:
(1) Full name, other names used (oral or written), social security
number(s), birth date, place of birth, citizenship, gender, all
languages (spoken or written);
(2) Currently and for the previous five years: Business and
employment positions held, ownership interests in those businesses,
business and residence addresses, and driver's license numbers;
(3) The names and current addresses of at least three personal
references, including one personal reference who was acquainted with
the applicant during each period of residence listed under paragraph
(a)(2) of this section;
(4) Current business and residence telephone numbers;
(5) A description of any existing and previous business
relationships with Indian tribes, including ownership interests in
those businesses;
(6) A description of any existing and previous business
relationships with the gaming industry generally, including ownership
interests in those businesses;
(7) The name and address of any licensing or regulatory agency with
which the person has filed an application for a license or permit
related to gaming, whether or not such license or permit was granted;
(8) For each felony for which there is an ongoing prosecution or a
conviction, the charge, the name and address of the court involved, and
the date and disposition if any;
(9) For each misdemeanor conviction or ongoing misdemeanor
prosecution (excluding minor traffic violations) within 10 years of the
date of the application, the name and address of the court involved and
the date and disposition;
(10) For each criminal charge (excluding minor traffic charges)
whether or not there is a conviction, if such criminal charge is within
10 years of the date of the application and is not otherwise listed
pursuant to paragraph
[[Page 5280]]
(a)(8) or (a)(9) of this section, the criminal charge, the name and
address of the court involved and the date and disposition;
(11) The name and address of any licensing or regulatory agency
with which the person has filed an application for an occupational
license or permit, whether or not such license or permit was granted;
(12) A photograph;
(13) Any other information a tribe deems relevant; and
(14) Fingerprints consistent with procedures adopted by a tribe
according to Sec. 522.2(h) of this chapter.
(b) If, in the course of a background investigation, a tribe
discovers that the applicant has a notice of results on file with the
NIGC from a prior investigation and the tribe has access to the earlier
investigative materials (either through the NIGC or the previous tribal
investigative body), the tribe may rely on those materials and update
the investigation and investigative report under Sec. 556.6(b)(1).
(c) In conducting a background investigation, a tribe or its agents
shall keep confidential the identity of each person interviewed in the
course of the investigation.
Sec. 556.5 Tribal eligibility determination.
A tribe shall conduct an investigation sufficient to make an
eligibility determination.
(a) To make a finding concerning the eligibility of a key employee
or primary management official for granting of a gaming license, an
authorized tribal official shall review a person's:
(1) Prior activities;
(2) Criminal record, if any; and
(3) Reputation, habits and associations.
(b) If the authorized tribal official, in applying the standards
adopted in a tribal ordinance, determines that licensing of the person
poses a threat to the public interest or to the effective regulation of
gaming, or creates or enhances the dangers of unsuitable, unfair, or
illegal practices and methods and activities in the conduct of gaming,
an authorizing tribal official shall not license that person in a key
employee or primary management official position.
Sec. 556.6 Report to the Commission.
(a) When a tribe employs a primary management official or a key
employee, the tribe shall maintain a complete application file
containing the information listed under Sec. 556.4(a)(1) through (14).
(b) Before issuing a license to a primary management official or to
a key employee, a tribe shall:
(1) Create and maintain an investigative report on each background
investigation. An investigative report shall include all of the
following:
(i) Steps taken in conducting a background investigation;
(ii) Results obtained;
(iii) Conclusions reached; and
(iv) The basis for those conclusions.
(2) Submit a notice of results of the applicant's background
investigation to the Commission no later than sixty (60) days after the
applicant begins work. The notice of results shall contain:
(i) Applicant's name, date of birth, and social security number;
(ii) Date on which applicant began or will begin work as key
employee or primary management official;
(iii) A summary of the information presented in the investigative
report, which shall at a minimum include a listing of:
(A) Licenses that have previously been denied;
(B) Gaming licenses that have been revoked, even if subsequently
reinstated;
(C) Every known criminal charge brought against the applicant
within the last 10 years of the date of application; and
(D) Every felony of which the applicant has been convicted or any
ongoing prosecution.
(iv) A copy of the eligibility determination made under Sec.
556.5.
Sec. 556.7 Notice.
(a) All notices under this part shall be provided to the Commission
through the appropriate Regional office.
(b) Should a tribe wish to submit notices electronically, it should
contact the appropriate Regional office for guidance on acceptable
document formats and means of transmission.
Sec. 556.8 Compliance with this part.
All tribal gaming ordinances and ordinance amendments approved by
the Chair prior to the February 25, 2013 and that reference this part,
do not need to be amended to comply with this part. All future
ordinance submissions, however, must comply.
0
2. Revise part 558 to read as follows:
PART 558--GAMING LICENSES FOR KEY EMPLOYEES AND PRIMARY MANAGEMENT
OFFICIALS
Sec.
558.1 Scope of this part.
558.2 Review of notice of results for a key employee or primary
management official.
558.3 Notification to NIGC of license decisions and retention
obligations
558.4 Notice of disqualifying information and licensee right to a
hearing.
558.5 Submission of notices.
558.6 Compliance with this part.
Authority: 25 U.S.C. 2706, 2710, 2712.
Sec. 558.1 Scope of this part.
Unless a tribal-state compact assigns responsibility to an entity
other than a tribe, the licensing authority for class II or class III
gaming is a tribal authority. The procedures and standards of this part
apply only to licenses for primary management officials and key
employees. This part does not apply to any license that is intended to
expire within 90 days of issuance.
Sec. 558.2 Review of notice of results for a key employee or primary
management official.
(a) Upon receipt of a complete notice of results for a key employee
or primary management official as required by Sec. 556.6(b)(2) of this
chapter, the Chair has 30 days to request additional information from a
tribe concerning the applicant or licensee and to object.
(b) If the Commission has no objection to issuance of a license, it
shall notify the tribe within thirty (30) days of receiving notice of
results pursuant to Sec. 556.6(b)(2) of this chapter.
(c) If, within the 30-day period described in Sec. 558.3(a), the
Commission provides the tribe with a statement itemizing objections to
the issuance of a license to a key employee or to a primary management
official applicant for whom the tribe has provided a notice of results,
the tribe shall reconsider the application, taking into account the
objections itemized by the Commission. The tribe shall make the final
decision whether to issue a license to such applicant.
(d) If the tribe has issued the license before receiving the
Commission's statement of objections, notice and hearing shall be
provided to the licensee as provided by Sec. 558.4.
Sec. 558.3 Notification to NIGC of license decisions and retention
obligations.
(a) After a tribe has provided a notice of results of the
background check to the Commission, a tribe may license a primary
management official or key employee.
(b) Within 30 days after the issuance of the license, a tribe shall
notify the Commission of its issuance.
(c) A gaming operation shall not employ a key employee or primary
management official who does not have a license after ninety (90) days.
(d) If a tribe does not license an applicant--
(1) The tribe shall notify the Commission; and
(2) Shall forward copies of its eligibility determination and
notice of
[[Page 5281]]
results, under Sec. 556.6(b)(2) of this chapter, to the Commission for
inclusion in the Indian Gaming Individuals Record System.
(e) A tribe shall retain the following for inspection by the Chair
or his or her designee for no less than three years from the date of
termination of employment:
(1) Applications for licensing;
(2) Investigative reports; and
(3) Eligibility determinations.
Sec. 558.4 Notice of information impacting eligibility and licensee's
right to a hearing.
(a) If, after the issuance of a gaming license, the Commission
receives reliable information indicating that a key employee or a
primary management official is not eligible for employment under Sec.
556.5 of this chapter, the Commission shall notify the issuing tribe of
the information.
(b) Upon receipt of such notification under paragraph (a) of this
section, a tribe shall immediately suspend the license and shall
provide the licensee with written notice of suspension and proposed
revocation.
(c) A tribe shall notify the licensee of a time and a place for a
hearing on the proposed revocation of a license.
(d) A right to a hearing under this part shall vest only upon
receipt of a license granted under an ordinance approved by the Chair.
(e) After a revocation hearing, a tribe shall decide to revoke or
to reinstate a gaming license. A tribe shall notify the Commission of
its decision within 45 days of receiving notification from the
Commission pursuant to paragraph (a) of this section.
Sec. 558.5 Submission of notices.
(a) All notices under this part shall be provided to the Commission
through the appropriate Regional office.
(b) Should a tribe wish to submit notices electronically, it should
contact the appropriate Regional office for guidance on acceptable
document formats and means of transmission.
Sec. 558.6 Compliance with this part.
All tribal gaming ordinances and ordinance amendments that have
been approved by the Chair prior to February 25, 2013 and that
reference this part do not need to be amended to comply with this
section. All future ordinance submissions, however, must comply.
Dated: January 17, 2013, Washington, DC.
Tracie L. Stevens,
Chairwoman.
Daniel J. Little,
Associate Commissioner.
[FR Doc. 2013-01315 Filed 1-24-13; 8:45 am]
BILLING CODE 7565-02-P