[Federal Register Volume 81, Number 129 (Wednesday, July 6, 2016)]
[Rules and Regulations]
[Pages 43941-43942]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2016-16009]



National Indian Gaming Commission

25 CFR Part 575

Civil Penalty Inflation Adjustment

AGENCY: National Indian Gaming Commission.

ACTION: Interim final rule.


SUMMARY: In compliance with the Federal Civil Penalties Inflation 
Adjustment Act Improvements Act of 2015 and Office of Management and 
Budget (OMB) guidance, this rule adjusts the level of the civil 
monetary penalty, contained in the National Indian Gaming Commission's 
(NIGC or Commission) regulation, with an initial ``catch-up'' 

DATES: This interim final rule will have an effective date of August 1, 

FOR FURTHER INFORMATION CONTACT: Contact Armando J. Acosta, Senior 
Attorney, Office of General Counsel, National Indian Gaming Commission, 
at (202) 632-7003; fax (202) 632-7066 (not toll-free numbers).


I. Background

    On November 2, 2015, the President signed into law the Federal 
Civil Penalties Inflation Adjustment Act Improvements Act of 2015 (Sec. 
701 of Pub. L. 114-74) (the Act). The Act requires federal agencies to 
adjust the level of civil monetary penalties with an initial ``catch-
up'' adjustment through an interim final rulemaking and then make 
subsequent annual adjustments for inflation. A civil monetary penalty 
is any assessment with a dollar amount that is levied for a violation 
of a federal civil statute or regulation, and is assessed or 
enforceable through a civil action in federal court or an 
administrative proceeding.

II. Calculation of Adjustment

    The OMB issued guidance on calculating the catch-up adjustment. See 
February 24, 2016, Memorandum for the Heads of Executive Departments 
and Agencies, from Shaun Donovan, Director, Office of Management and 
Budget, Subject: Implementation of the Federal Civil Penalties 
Inflation Adjustment Act Improvements Act of 2015. Under this guidance, 
the Commission has identified one applicable civil monetary penalty and 
calculated the catch-up adjustment. This rule adjusts the level of the 
civil monetary penalty contained in 25 CFR 575.4 (``The Chairman may 
assess a civil fine, not to exceed $25,000 per violation, against a 
tribe, management contractor, or individual operating Indian gaming for 
each notice of violation . . .''). The OMB provided to agencies a table 
of multipliers to adjust the penalty level based on the year that the 
penalty was established or last adjusted by statute or regulation. The 
multiplier for 1988 (when the Indian Gaming Regulatory Act was enacted) 
is 1.97869 ($25,000 x 1.97869 = $49,467).

III. Regulatory Matters

Regulatory Planning and Review

    This interim final rule is not a significant rule and OMB has 
reviewed this rule under Executive Order 12866. This rule provides an 
initial catch-up adjustment of penalties to account for inflation.
    (1) This rule will not have an effect of $100 million or more on 
the economy or will not adversely affect, in a material way, the 
economy, productivity, competition, jobs, the environment, public 
health or safety, or state, local, or tribal governments or 
    (2) This rule will not create a serious inconsistency or otherwise 
interfere with an action taken or planned by another agency.
    (3) This rule does not involve entitlements, grants, user fees, or 
loan programs or the rights or obligations of recipients.
    (4) This regulatory change does not raise novel legal or policy 

Regulatory Flexibility Act

    The Commission certifies that this document will not have a 
significant economic effect on a substantial number of small entities 
under the Regulatory Flexibility Act (5 U.S.C. 601 et seq.) because the 
rule makes adjustments for inflation.

[[Page 43942]]

Small Business Regulatory Enforcement Fairness Act

    This interim final rule is not a major rule under 5 U.S.C. 804(2), 
the Small Business Regulatory Enforcement Fairness Act. It will not 
result in the expenditure by state, local, or tribal governments, in 
the aggregate, or by the private sector of $100 million or more in any 
one year. The rule will not result in a major increase in costs or 
prices for consumers, individual industries, federal, state, or local 
government agencies, or geographic regions. Nor will this rule have 
significant adverse effects on competition, employment, investment, 
productivity, innovation, or the ability of the U.S.-based enterprises 
to compete with foreign-based enterprises.

Unfunded Mandates Reform Act

    This interim final rule does not impose an unfunded mandate of more 
than $100 million per year on state, local, or tribal governments or 
the private sector. The rule also does not have a significant or unique 
effect on state, local, or tribal governments or the private sector. 
Therefore, a statement containing the information required by the 
Unfunded Mandates Reform Act (2 U.S.C. 1531 et seq.) is not required.


    Under the criteria in Executive Order 12630, this interim final 
rule does not affect individual property rights protected by the Fifth 
Amendment nor does it involve a compensable ``taking.'' Thus, a takings 
implication assessment is not required.


    Under the criteria in Executive Order 13132, this interim final 
rule has no substantial direct effect on the states, on the 
relationship between the national government and the states, or on the 
distribution of power and responsibilities among the various levels of 

Civil Justice Reform

    This interim final rule complies with the requirements of Executive 
Order 12988. Specifically, this rule has been reviewed to eliminate 
errors and ambiguity and written to minimize litigation. It is written 
in clear language and contains clear legal standards.

Consultation with Indian Tribes

    In accordance with the President's memorandum of April 29, 1994, 
Government-to-Government Relations with Native American Tribal 
Governments, Executive Order 13175 (59 FR 22951, November 6, 2000), the 
Commission has determined that consultations with Indian gaming tribes 
is not practicable, as Congress has mandated that the civil penalty 
adjustments in the Act be implemented no later than August 1, 2016.

Paperwork Reduction Act

    This interim final rule does not affect any information collections 
under the Paperwork Reduction Act.

National Environmental Policy Act

    This interim final rule does not constitute a major federal action 
significantly affecting the quality of the human environment.

Information Quality Act

    In developing this interim final rule, the Commission did not 
conduct or use a study, experiment, or survey requiring peer review 
under the Information Quality Act (Pub. L. 106-554).

Effects on the Energy Supply

    This interim final rule is not a significant energy action under 
the definition in Executive Order 13211. A Statement of Energy Effects 
is not required.

Clarity of this Regulation

    The Commission is required by Executive Orders 12866 and 12988 and 
by the Presidential Memorandum of June 1, 1998, to write all rules in 
plain language. This means that each rule that the Commission publishes 
    (a) Be logically organized;
    (b) use the active voice to address readers directly;
    (c) use clear language rather than jargon;
    (d) be divided into short sections and sentences; and
    (e) use lists and tables wherever possible.

Required Determinations Under the Administrative Procedure Act

    The Federal Civil Penalties Inflation Adjustment Act Improvements 
Act of 2015 requires agencies to adjust penalties for the catch-up 
adjustment through an interim final rulemaking. Therefore, the 
Commission is not required to complete a notice and comment process 
prior to promulgation.

List of Subjects in 25 CFR Part 575

    Administrative practice and procedure, Gaming, Indian lands, 
    For the reasons set forth in the preamble, the Commission amends 25 
CFR part 575 as follows:


1. The authority citation for part 575 is revised to read as follows:

    Authority:  25 U.S.C. 2705(a), 2706, 2713, 2715; and Sec. 701, 
Pub. L. 114-74, 129 Stat. 599.

2. Amend the introductory text of Sec.  575.4 by removing ``$25,000'' 
and adding in its place ``$49,467''.

    Dated: June 28, 2016.
Jonodev O. Chaudhuri,

Kathryn Isom-Clause,
Vice Chairwoman,

E. Sequoyah Simermeyer,
Associate Commissioner.
[FR Doc. 2016-16009 Filed 7-5-16; 8:45 am]