NIGC Consultation Series B
January 27, 2022
Page 4

Sincerely,
Delano Saluskin

Chairman

Ce: Law and Order Committee Members
Yakama Nation Gaming Commissioners


Confederated Tribes and Bands Established by the
of the Yakama Nation : ee Treaty of June 9, 1855

January 27, 2022

NIGC Chairman Simermeyer
National Indian Gaming Commission
Department of Interior

1849 C Street NW Mail Stop #1621
Washington, DC 20002

Subject: NIGC Consultation Series B

Dear Chairman Simermeyer:

Please find the Yakama Nation Tribal Council comments in regard to Consultation B
with the National Indian Gaming Commission (NIGC). The Covid-19 Pandemic hit
many of our Tribal Gaming Regulatory (TGRA) Commissioners and staff causing a delay
in the process to reply to the Consultation Series B--we apologize for it’s late

submission but hereby request our input be accepted for the record.

The first item NIGC asks: “Under IGRA, 25 U.S.C. § 2706(b) (3) — Consultation B seeks
Tribes’ views on whether NIGC should promulgate regulations for backgrounding and
submitting fingerprints for gaming vendors, suppliers, equipment manufacturers, and
consultants with physical or logical access to gaming machines, systems, software,
supplies, cash and cash equivalents or secured/restricted areas of gaming operations as
defined by TGA. Such background investigations would be mandatory if included in a
gaming ordinance approved by the NIGC Chair.”

Comments- We do not agree with 2706(b) (3) This NIGC section discusses adding
gaming vendors to be fingerprinted and processed. This requirement may negatively
impact how we do business and limit or decrease vendors--as most vendors live out of
state or will not want to provide that type of information and/or have privacy laws
preventing them to be able to provide such information. Also, we see this as an increase
to tribes to require more staff to process that information. In addition it gives NIGC
additional regulatory authority—whereas, the Yakama Nation Gaming Commission are
the primary regulators and have approved policies and procedures for vendor licensing.
The Licensing department conducts background investigations on all vendors and vendor
employees that complete the Vendor Licensing Applications. Our Class III vendors are
also certified by the Washington State Gambling Commission who conducts background
investigations as well. The Yakama Nation Gaming Commission and Washington State

Post Office Box 151, Fort Road, Toppenish, WA 98948 (509) 865-5121


NIGC Consultation Series B

January 27, 2022

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Gambling Commission conduct criminal background checks annually for all vendors and
vendor employees.

However, we do agree and encourage support to the proposed language that NIGC stated,
“instead of promulgating these regulations, use its authority under IGRA to request
information from other government agencies, such as FBI, IRS, Fin Cen, and OFAC. to
provide information necessary...” first, to work with the affected Tribal TGRA to
investigate if violations of law are found.

The next one: “25 C.F.R. § 571 - Audits: - The Commission seeks input, feedback and
suggestions concerning proposed amendments on 571, specifically as this part applies to
required submissions of the annual audit.” There are extensive proposed changes made
in which we recommend time be added to further study the proposed policies in a
mindful manner to better understand them.

For example, in #1. Adverse and Disclaimed Opinions, 571.12(b)(3), and (d)(5), and (e)
(5), “The current audit regulations do not directly address instances where an auditor
finds that the financial statements may be incomplete or inaccurate. Regulators need
complete and accurate information to identify and prevent theft and to make regulatory

decisions.” .... There are four different types of audit opinions an auditor may express:
“1, Unqualified Opinion 2. Qualified Opinion 3. Adverse Opinion 4. Disclaimer of
Opinion.” ...” “Under the proposed changes, tribes that submit an Adverse or

Disclaimed Opinion as part of their audit will therefore be subject to an action for failure
to submit an audit. As always, the Chairman has discretionary enforcement authority.”
There is no due process outlined if a Tribe is found to be out of compliance and subjected
to an NIGC action for failure to submit an audit as it is written.

Continuing with #2. of 571.12(b) and 571.13(a-c) Clarification that the audit report and
opinion is the required submission, language again raises concern about “disclaimed
opinion and adverse opinion” does not satisfy NIGC’s requirements. There again there is
no due process showing how regulatory compliance will be enforced upon a Tribe. Can
NIGC provide support to help Tribes reach compliance in the process?

Next on #3 of 25 CFR 571(d) and (e), Prerequisites for consolidated audits. NIGC
stated...”a tribe proposed a single consolidated audit for six operations owned and
operated by separate non-tribally owned gaming enterprises...” Which prompted this
proposed policy that only operations with the same owner may consolidate audits. We
agree with this GAAP approved policy.

The next one, “25 C.F.R. Part 518 — Self Regulation of Class II Gaming: The
Commission seeks your input on amendments to Part 518 to simplify self-regulation
procedures. The Commission seeks to reduce the time it takes to obtain a certificate of
self-regulation and clarify the Office of Self-Regulation’s functions. The Commission
also seeks to clarify the submission requirements for tribes with a certificate of self-


NIGC Consultation Series B

January 27, 2022

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regulation to ensure consistent NIGC practices, and explore the value of an annual
Commission summit to promote and discuss best industry practices among self-regulated
gaming operations.”

Comments- We are in agreement with Part 518: The changes to self-regulation would be
beneficial, however, we do encourage NIGC to increase support to Tribes who desire to
learn how to be approved for self-regulation. Increasing the self-regulation staff,
increasing outreach to Tribes on this important area to truly support Tribes in their efforts
and focusing training to learn how to achieve NIGC self-regulation is requested.

Next is “25 C.F.R. Part 514~ Fees: The Commission seeks input on NIGC fee
regulations, including: exploring a mechanism to adjust the year against which the fee
rate is assessed to respond to extreme and unexpected variations in the industry;
mandating a process for reporting on the carry-over status at fiscal year-end; requiring a
budget commitment to maintain a two-quarter transition fund; and considering guidelines
for the fee rate calculation for self-regulated tribes.”

Comments- Part 514: Fees, we agree with NIGC exploring fee mechanism and
responding to extreme and unexpected variations in the industry. Covid-19 pandemic has
hit the World harshly in all ways—including the economy. We look forward to learning
more on this proposed policy change.

“25 C.F.R.585 - Administrative Appeals regulations proceedings before the Commission:
The Commission seeks your input on updates to the Agency’s appeal regulations
designed to expedite the process, allow the Commission to decide appeals in less time,
and clarify the authority and process for settlement agreements.”

Comments- We agree the appeal process for NIGC should be completed faster. There are
concerns of due process in that the NIGC Chairman is proposed to be able to respond to
motions filed in appeals proceedings before the NIGC by a Tribal government. Adding
this to the Chair’s authority for them to vote on whether to uphold or reverse the Chair’s
prior decision appears to be a conflict of interest in their initial decision and the integrity
of due process is not upheld. At this time we would ask for this to be further explained as
to how due process for Tribal governments who appeal, will be provided.

In 25 CFR 585.8 What is the process for pursuing settlement in an appeal to the
Commission? Comment: We agree and support that “Settlements” are in the best
interests of all parties and request NIGC to work with Tribal governments to reach
positive outcomes while pursuing settlement agreements.

We apologize again for the delay in submitting our comments due to the Covid-19
rippling affect to our regulatory team. Thank you for the opportunity to provide
comments to this Consultation B Series, we will let you know if we have further
comments on this.