Federal Register / Vol. 87, No. 105 / Wednesday, June 1, 2022 / Proposed Rules 33091 

* * * * * 

Issued in Washington, DC, on May 24, 

2022. 

Scott M. Rosenbloom, 

Manager, Airspace Rules and Regulations. 

[FR Doc. 2022–11552 Filed 5–31–22; 8:45 am] 

BILLING CODE 4910–13–P 

DEPARTMENT OF THE INTERIOR 

National Indian Gaming Commission 

25 CFR Part 571 

RIN 3141–AA72 

Audit Standards 

AGENCY: National Indian Gaming 

Commission, Department of the Interior. 

ACTION: Proposed rule. 

SUMMARY: The National Indian Gaming 

Commission (NIGC) proposes to amend 

our Audit Standards regulations. The 

proposed rule will amend the 

regulations to eliminate the Commission 

waiver requirement for reviewed 

financial statements and allow all 

operations grossing less than $2 million 

in the previous fiscal year to submit 

reviewed financial statements provided 

that the tribe or tribal gaming regulatory 

authority (TGRA) permits the gaming 

operation to submit reviewed financials. 

The proposed amendment to the rule 

will also create a third tier of financial 

reporting for charitable gaming 

operations with annual gross revenues 

of $50,000 or less where, if permitted by 

the tribe, a charitable gaming operation 

may submit financial information on a 

monthly basis to the tribe or the TGRA 

and in turn, the tribe or TGRA provides 

an annual certification to the NIGC 

regarding the charitable gaming 

operation’s compliance with the 

financial reporting. The proposed 

amendment also adds a provision 

clarifying that the submission of an 

adverse opinion does not satisfy the 

regulation’s reporting requirements. 

DATES: The agency must receive 

comments on or before July 1, 2022. 

ADDRESSES: You may send comments by 

any of the following methods: 

• Federal eRulemaking Portal: Go to 

http://www.regulations.gov. Follow the 

instructions for submitting comments. 

• Email: information@nigc.gov. 

• Fax: (202) 632–7066. 

• Mail: National Indian Gaming 

Commission, 1849 C Street NW, MS 

1621, Washington, DC 20240. 

• Hand Delivery: National Indian 

Gaming Commission, 90 K Street NE, 

Suite 200, Washington, DC 20002, 

between 9 a.m. and 5 p.m., Monday 

through Friday, except Federal holidays. 

FOR FURTHER INFORMATION CONTACT: 

Jennifer Lawson, National Indian 

Gaming Commission; Telephone: (202) 

632–7003. 

SUPPLEMENTARY INFORMATION: 

I. Comments Invited 

Interested parties are invited to 

participate in this proposed rulemaking 

by submitting such written data, views, 

or arguments as they may desire. 

Comments providing the factual basis 

behind supporting the views and 

suggestions presented are particularly 

helpful in developing reasoned 

regulatory decisions on the proposal. 

II. 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 National Indian Gaming 

Commission (NIGC or Commission) and 

sets out a comprehensive framework for 

the regulation of gaming on Indian 

lands. On January 22, 1993, the 

Commission promulgated Part 571.12 

establishing audit standards for tribal 

gaming facilities. On July 27, 2009, the 

Commission amended the regulation to 

allow tribes with multiple facilities to 

consolidate their audit statements into 

one and to allow operations earning less 

than $2 million in gross gaming revenue 

to file an abbreviated statement. 

III. Development of the Proposed Rule 

On June 9, 2021, the National Indian 

Gaming Commission sent a Notice of 

Consultation announcing that the 

Agency intended to consult on several 

topics, including proposed changes to 

the Audit standards. Prior to 

consultation, the Commission released 

proposed discussion drafts of the 

regulations for review. The proposed 

amendments to the Audit standards are 

designed to reduce the financial hurdles 

that small and charitable gaming 

operations face regarding the audit 

requirement. The Commission held two 

virtual consultation sessions in 

September and one virtual consultation 

in October of 2021 to receive tribal 

input on any proposed changes. 

The Commission reviewed all 

comments received through 

consultation and now proposes these 

changes. 

IV. 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. 

Unfunded Mandate 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). 

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 proposed rule does not unduly 

burden the judicial system and meets 

the requirements of section 3(a) and 

3(b)(2) of the Order. 

National Environmental Policy Act 

The Commission has determined that 

the 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, 42 U.S.C. 4321, et seq. 

Paperwork Reduction Act 

The information collection 

requirements contained in this proposed 

rule were previously approved by the 

Office of Management and Budget 

(OMB) as required by 44 U.S.C. 3501 et 

seq. and assigned OMB Control Number 

3141– 0003. 

Tribal Consultation 

The National Indian Gaming 

Commission is committed to fulfilling 

its tribal consultation obligations— 

whether directed by statute or 

administrative action such as Executive 

Order (E.O.) 13175 (Consultation and 

Coordination with Indian Tribal 

Governments)—by adhering to the 

consultation framework described in its 

Consultation Policy published July 15, 

2013. The NIGC’s consultation policy 

specifies that it will consult with tribes 

on Commission Action with Tribal 

Implications, which is defined as: Any 

Commission regulation, rulemaking, 

policy, guidance, legislative proposal, or 

operational activity that may have a 

substantial direct effect on an Indian 

tribe on matters including, but not 

limited to the ability of an Indian tribe 


jspears on DSK121TN23PROD with PROPOSALS1
33092 Federal Register / Vol. 87, No. 105 / Wednesday, June 1, 2022 / Proposed Rules 

to regulate its Indian gaming; an Indian 

tribe’s formal relationship with the 

Commission; or the consideration of the 

Commission’s trust responsibilities to 

Indian tribes. 

Pursuant to this policy, on June 9, 

2021, the National Indian Gaming 

Commission sent a Notice of 

Consultation to the public, announcing 

the Agency intended to consult on 

several topics, including proposed 

amendments to NIGC audit standards. 

The Commission held two virtual 

consultation sessions in September and 

one virtual consultation session in 

October of 2021 to receive tribal input 

on proposed changes. 

List of Subjects in 25 CFR Part 571 

Gambling, Indian—lands, Indian— 

tribal government, reporting and 

recordkeeping requirements. 

Therefore, for reasons stated in the 

preamble, 25 CFR part 571 is proposed 

to be amended as follows: 

PART 571—MONITORING AND 

INVESTIGATIONS 

■ 1. The authority citation continues to 

read as follows: 

Authority: 25 U.S.C. 2706(b), 2710(b)(2)(C), 

2715, 2716. 

■ 2. Revise § 571.12 to read as follows: 

§ 571.12 Audit standards. 

(a) Each tribe shall prepare 

comparative financial statements 

covering all financial activities of each 

class II and class III gaming operation on 

the tribe’s Indian lands for each fiscal 

year. 

(b) A tribe shall engage an 

independent certified public accountant 

to conduct an annual audit of the 

financial statements of each class II and 

class III gaming operation on the tribe’s 

Indian lands for each fiscal year. The 

audit and auditor must meet the 

following standards: 

(1) The independent certified public 

accountant must be licensed by a state 

board of accountancy. 

(2) Financial statements prepared by 

the certified public accountant shall 

conform to generally accepted 

accounting principles and the annual 

audit shall conform to generally 

accepted auditing standards. 

(3) The independent certified public 

accountant expresses an opinion on the 

financial statements. An adverse 

opinion must be submitted, but does not 

satisfy this requirement unless: 

(i) It is the result of the gaming 

operation meeting the definition of a 

state or local government and the 

gaming operation prepared its financial 

statements in accordance with generally 

accepted accounting principles (GAAP) 

as promulgated by Financial Accounting 

Standards Board (FASB), or; 

(ii) the adverse opinion pertains to a 

consolidated audit pursuant to 

paragraph (d) of this section and the 

operations not attributable to the 

adverse opinion are clearly identified. 

(c) If a gaming operation has gross 

gaming revenues of less than $2,000,000 

during the prior fiscal year, the annual 

audit requirement of paragraph (b) of 

this section is satisfied if: 

(1) The independent certified public 

accountant completes a review of the 

financial statements conforming to the 

statements on standards for accounting 

and review services of the gaming 

operation; and 

(2) The tribe or tribal gaming 

regulatory authority (TGRA) permits the 

gaming operation to submit a review of 

the financial statements according to 

this paragraph and the tribe or TGRA 

informs the NIGC of such permission; 

provided that 

(3) If the Chair of the NIGC has reason 

to believe that the assets of a gaming 

operation are not being appropriately 

safeguarded or the revenues are being 

misused under IGRA, the Chair may, at 

his or her discretion, require any gaming 

operation subject to this paragraph (c) to 

submit additional information or 

comply with the annual audit 

requirement of paragraph (b) of this 

section. 

(d) If a gaming operation has multiple 

gaming places, facilities or locations on 

the tribe’s Indian lands, the annual 

audit requirement of paragraph (b) of 

this section is satisfied if: 

(1) The tribe chooses to consolidate 

the financial statements of the gaming 

places, facilities or locations; 

(2) The independent certified public 

accountant completes an audit 

conforming to generally accepted 

auditing standards of the consolidated 

financial statements; 

(3) The consolidated financial 

statements include consolidating 

schedules for each gaming place, 

facility, or location; and 

(4) The independent certified public 

accountant expresses an opinion on the 

consolidated financial statement as a 

whole and subjects the accompanying 

financial information to the auditing 

procedures applicable to the audit of 

consolidated financial statements. 

(e) If there are multiple gaming 

operations on a tribe’s Indian lands and 

each operation has gross gaming 

revenues of less than $2,000,000 during 

the prior fiscal year, the annual audit 

requirement of paragraph (b) of this 

section is satisfied if: 

(1) The tribe chooses to consolidate 

the financial statements of the gaming 

operations; 

(2) The consolidated financial 

statements include consolidating 

schedules for each operation; 

(3) The independent certified public 

accountant completes a review of the 

consolidated schedules conforming to 

the statements on standards for 

accounting and review services for each 

gaming facility or location; and 

(4) The independent certified public 

accountant expresses an opinion on the 

consolidated financial statements as a 

whole and subjects the accompanying 

financial information to the auditing 

procedures applicable to the audit of 

consolidated financial statements. 

(f)(1) If a tribal or charitable gaming 

operation has gross gaming revenues of 

less than $50,000 during the prior fiscal 

year, the annual audit requirement of 

paragraph (b) of this section is satisfied 

if: 

(i) The gaming operation creates, 

prepares, and maintains records in 

accordance with Generally Accepted 

Accounting Principles; 

(ii) At a minimum, the gaming 

operation provides the tribe or tribal 

gaming regulatory authority (TGRA) 

with the following financial information 

on a monthly basis: 

(A) Each occasion when gaming was 

offered in a month; 

(B) Gross gaming revenue for each 

month; 

(C) Amounts paid out as, or paid for, 

prizes for each month; 

(D) Amounts paid as operating 

expenses, providing each recipient’s 

name; the date, amount, and check 

number or electronic transfer 

confirmation number of the payment; 

and a brief description of the purpose of 

the operating expense; 

(E) All deposits of gaming revenue; 

(F) All withdrawals of gaming 

revenue; 

(G) All expenditures of net gaming 

revenues, including the recipient’s 

name, the date, amount, and check 

number or electronic transfer 

confirmation number of the payment; 

and a brief description of the purpose of 

the expenditure; and 

(H) The names of each employee and 

volunteer, and the salary or other 

compensation paid to each person. 

(iii) The tribe or TGRA permits the 

gaming operation to be subject to this 

paragraph (f), and the tribe or TGRA 

informs the NIGC in writing of such 

permission; 

(iv) Within 30 days of the gaming 

operation’s fiscal year end, the tribe or 

the TGRA provides a certification to the 

NIGC that the tribe or TGRA reviewed 


jspears on DSK121TN23PROD with PROPOSALS1
Federal Register / Vol. 87, No. 105 / Wednesday, June 1, 2022 / Proposed Rules 33093 

1SoundCloud Operations Inc. withdrew from the 

proceeding on May 21, 2021. 

2 David Powell and Brian Zisk filed petitions to 

participate in this proceeding; neither filed a 

Written Direct Statement. 

3The participants who filed the motion are the 

‘‘Copyright Owners’’ (NMPA and NSAI) and the 

‘‘Record Company Participants’’ (Sony Music 

Entertainment, UMG Recordings, Inc. and Warner 

Music Group Corp.). Motion at 1. 

4Subpart B refers to subpart B, part 385, 

subchapter E, chapter III, 37 CFR, the regulations 

Continued 

the charitable gaming operation’s 

financial information, and after such 

review, the tribe or TGRA concludes 

that the charitable gaming operation 

conducted the gaming in a manner that 

protected the integrity of the games 

offered and safeguarded the assets used 

in connection with the gaming 

operation, and the charitable gaming 

operation expended net gaming 

revenues in a manner consistent with 

IGRA, NIGC regulations, the tribe’s 

gaming ordinance or resolution, and the 

tribe’s gaming regulations. 

(2) If the tribe or TGRA does not or 

cannot provide the NIGC with the 

certification required by paragraph 

(f)(1)(v) of this section within 30 days of 

the gaming operation’s fiscal year end, 

the gaming operation must otherwise 

comply with the annual audit 

requirement of paragraph (b) of this 

section. 

(3) The tribe or TGRA may impose 

additional financial reporting 

requirements on gaming operations that 

otherwise qualify under this paragraph 

(f). 

(4) If the Chair of the NIGC has reason 

to believe that the assets of a charitable 

operation are not being appropriately 

safeguarded or the revenues are being 

misused under IGRA, the Chair may, at 

his or her discretion, require any gaming 

operation subject to this paragraph (f) to 

submit additional information or 

comply with the annual audit 

requirement of paragraph (b) of this 

section. 

(5) This paragraph (f) does not affect 

other requirements of IGRA and NIGC 

regulations, including, but not limited 

to, fees and quarterly fee statements (25 

U.S.C. 2717; 25 CFR part 514); 

requirements for revenue allocation 

plans (25 U.S.C. 2710(b)(3)); 

requirements for individually-owned 

gaming (25 U.S.C. 2710(b)(4), (d); 25 

CFR 522.10); minimum internal control 

standards for Class II gaming and 

agreed-upon procedures reports (25 CFR 

part 543); background and licensing for 

primary management officials and key 

employees of a gaming operation (25 

U.S.C. 2710(b)(2)(F); 25 CFR parts 556, 

558); and facility licenses (25 CFR part 

559). 

Dated: May 18, 2022. 

E. Sequoyah Simermeyer, 

Chairman. 

Jeannie Hovland, 

Vice Chair. 

[FR Doc. 2022–11482 Filed 5–31–22; 8:45 am] 

BILLING CODE 7565–01–P 

LIBRARY OF CONGRESS 

Copyright Royalty Board 

37 CFR Part 385 

[Docket No. 21–CRB–0001–PR (2023–2027)] 

Determination of Rates and Terms for 

Making and Distributing Phonorecords 

(Phonorecords IV) 

AGENCY: Copyright Royalty Board, 

Library of Congress. 

ACTION: Proposed rule. 

SUMMARY: The Copyright Royalty Judges 

publish for comment proposed 

regulations that set rates and terms 

applicable during the period beginning 

January 1, 2023, and ending December 

31, 2027, for the section 115 statutory 

license for making and distributing 

certain configurations of phonorecords 

of nondramatic musical works. 

DATES: Comments and objections, if any, 

are due no later than July 1, 2022. 

ADDRESSES: You may send comments, 

identified by docket number 21–CRB– 

0001–PR (2023–2027), by filing online 

through eCRB at https://app.crb.gov. 

Instructions: To send your comment 

through eCRB, if you don’t have a user 

account, you will first need to register 

for an account and wait for your 

registration to be approved. Approval of 

user accounts is only available during 

business hours. Once you have an 

approved account, you can only sign in 

and file your comment after setting up 

multi-factor authentication, which can 

be done at any time of day. All 

comments must include the Copyright 

Royalty Board name and the docket 

number for this proposed rule. All 

properly filed comments will appear 

without change in eCRB at https://

app.crb.gov, including any personal 

information provided. 

Docket: For access to the docket to 

read background documents or 

comments received, go to eCRB at 

https://app.crb.gov and perform a case 

search for docket 21–CRB–0001–PR 

(2023–2027). 

FOR FURTHER INFORMATION CONTACT: 

Anita Brown, CRB Program Specialist, 

at 202–707–7658 or crb@loc.gov. 

SUPPLEMENTARY INFORMATION: 

Background 

Section 115 of the Copyright Act, title 

17 of the United States Code, requires a 

copyright owner of a nondramatic 

musical work to grant a license (also 

known as the ‘‘mechanical’’ compulsory 

license) to any person who wants to 

make and distribute phonorecords of 

that work, provided that the copyright 

owner has allowed phonorecords of the 

work to be produced and distributed, 

and that the licensee complies with the 

statute and regulations. In addition to 

the production or distribution of 

physical phonorecords (compact discs, 

vinyl, cassette tapes, and the like), 

section 115 applies to digital 

transmissions of phonorecords, 

including permanent digital downloads 

and ringtones. 

Chapter 8 of the Copyright Act 

requires the Copyright Royalty Judges 

(Judges) to conduct proceedings every 

five years to determine the rates and 

terms for the section 115 license. 17 

U.S.C. 801(b)(1), 804(b)(4). Accordingly, 

the Judges commenced the current 

proceeding in January 2021, by 

publishing notice of the commencement 

and soliciting petitions to participate 

from interested parties. See 86 FR 25 

(Jan. 5, 2021). 

The Judges received petitions to 

participate in the current proceeding 

from Amazon.com Services LLC, Apple 

Inc., Copyright Owners (joint petitioners 

Nashville Songwriters Association 

International (NSAI) and National 

Music Publishers’ Association (NMPA)), 

Google LLC, George Johnson, Joint 

Record Company Participants (filed by 

Recording Industry Association of 

America, Inc. for joint petitioners Sony 

Music Entertainment, UMG Recordings, 

Inc., and Warner Music Group Corp.), 

Pandora Media, LLC, David Powell, 

SoundCloud Operations Inc.,1 Spotify 

USA Inc., and Brian Zisk.2

The Judges gave notice to all 

participants of the three-month 

negotiation period required by 17 U.S.C. 

803(b)(3) and directed that, if the 

participants were unable to negotiate a 

settlement, they should submit Written 

Direct Statements no later than 

September 10, 2021. On May 25, 2021, 

the Judges received a motion stating that 

several participants 3 had reached a 

partial settlement regarding the rates 

and terms for the period commencing in 

January 2023 under Section 115 of the 

Copyright Act, namely, the applicable 

rates for use of musical works in 

physical phonorecords, permanent 

downloads, ringtones, and music 

bundles (Subpart B Configurations) 4


jspears on DSK121TN23PROD with PROPOSALS1