much improved from the current practice. Overall, the proposed revisions to Part 518 are
much needed and should facilitate many more tribes applying for self-regulation certification.

Finally, the changes to proceedings before the Commission process appear to streamline and
simplify the process. We support the creation of a subchapter solely on these proceedings
instead of the current rules scattered throughout the Chapter. By creating a part dedicated
solely to general rules and parts for each type of proceeding, these proceedings are much more
accessible to the parties. While these regulations will likely need refinement as they are
implemented, they are a vast improvement to the current appeal process.

The Spokane Tribe appreciates the NIGC’s efforts in conducting the regulatory review and
including the tribes in that review. We look forward to additional collaboration on the
proposed rules as they are published.

Respectfully,

eg Vibe”

Rudy J. Peone
Secretary Elect
Spokane Tribal Business Council


Spokane Tribe of Indians

P.O. Box 100 ¢ Wellpinit, WA 99040 © (509) 458-6500 ¢ Fax (509) 458-6575

Spokane Comments — NIGC Consultation February 16, 2012

Since our last submission on December 5, 2011, the National Indian Gaming Commission
published eight additional Notices of Proposed Rulemaking and concluded the Tribal Advisory
Committee meetings to review the Class Il Minimum Internal Control Standards and the
Technical Standards and Class III Minimum Internal Control Standards.

Tribal Advisory Committee

First, we commend the Commission for completing the Tribal Advisory Committee meetings
reviewing the Class Il Minimum Internal Control Standards and Technical Standards. As the
primary regulators for Indian gaming, tribes are truly the experts on the MICS and Technical
Standards and we appreciate the Commission’s willingness to include tribes in the conversation
in a meaningful way. We do recognize that the recent cancellations of the February and March
TAC meetings are causing concern to some in the tribal gaming community. We appreciate the
Commission’s commitment to fiscal responsibility but also believe that so long as there is work
to be done on the MICS, in person meetings are the best way to complete that work. Given the
recent cancellation in the meetings, we must assume that the necessary work has been
completed and the Tribe looks forward to reviewing the proposed regulations and commenting
on them during the formal rulemaking process.

As you complete your work finalizing the Class II regulations, please keep in mind that a viable
Class Il game is the only leverage many tribes have in the wake of the Seminole decision. We
also recommend the NIGC continue its work under the Stevens Administration to work
collaboratively with the DO! and DOJ to develop a collective and coordinated approach which
will ensure tribes are in the position that Congress intended when states refuse to negotiate in
good faith.

The Spokane Tribe recognizes that the Class III MICS were not included as a topic of discussion
during the Tribal Advisory meetings and we applaud the NIGC for leaving the Class II] MICS out
of that process. However, we must reiterate our previous recommendation that the NIGC
establish a clear date to withdraw Class Il MICS from its body of regulations, notices and
Bulletins. The Colorado River Indian Tribe ruling made it clear that the NIGC NEVER possessed
the authority to either promulgate regulations or enforce those regulations. While some tribes
have embraced the NIGC CLASS III MICS in compacts and ordinances, those tribes did so at their
peril. Those tribes can transition into some other type of default MICS through a regulators


organization, or amend their compacts, or defer to some type of industry entity. As the
Chairwoman testified before Congress, there is no regulatory void for the NIGC to fill with the

promulgation of Class III MICS, guidelines or bulletins. Class III MICS are properly left as a point
of compact negotiation between tribes and states.

Proposed Rulemaking

Finally, we are excited to see the publication of the Final Rulemaking for Part 514 and the
Notices of Proposed Rulemaking. We strongly support the process of regulatory review the
NIGC has undergone during the past 12 months. We applaud the Commission for listening to
tribal comments and incorporating them into the Final and Proposed Rules and look forward to
publication of other final rules in the very near future.

We very much support the proposed changes in Part 537. The review and approval of
management contracts can be a lengthy process and anything that the Commission can do to
streamline this process is appreciated. Allowing the Chairperson to create a streamlined
process for determining what information should be required from tribes, wholly owned tribal
entities and federally regulated banks required to undergo a background investigation and
licensure by a state or tribe pursuant to compact provisions is a common sense approach to a
complicated, burdensome and costly process.

The Tribe also supports Proposed Parts 556 and 558. These regulations formalize the
background and licensing “pilot program” that has been in place for many years and has proven
to be very successful. It is reasonable to formalize this program by regulation and allow all
tribes to participate in this streamlined process. We understand, however, that different
regions may use different formats to submit the notice of results. We recommend the
Commission adopt a single form to be utilized by each region, creating uniformity in the
process. We also echo the recommendation to eliminate the requirement that a background
investigation include personal references from Part 556. Given the advancements in
technology, a tribal regulatory agency can easily find information on an applicant without
resorting to calling references provided by the applicant.

The revisions to proposed Parts 573 and 502.24 greatly improve the NIGC’s Enforcement Action
procedures. The Tribe supports these changes as they reflect a more collaborative approach to
resolving potential violations of IGRA, regulations or tribal laws and ordinances. As co-
regulators, it is vital that the NIGC and tribes work together to ensure compliance while
avoiding enforcement actions. This regulation appears to reflect that goal. The clarity provided
to tribes through the addition of the definition of “enforcernent action” in Proposed Part
502.24 is a common sense but important clarification identifying to both the NIGC and tribes
what actions rise to the level of enforcement.


The tiered approach in Part 573 to resolve a potential violation reflects a substantial change in
the approach by the NIGC to these types of issues. Previous Administrations did not appear to
be troubled when issuing enforcement actions without first contacting the tribe. This new
approach is a breath of fresh air and a tangible recognition by the Commission that Tribes ARE
the primary regulators of tribal gaming. While we were previously concerned that the draft
regulation gave complete discretion to the Chairperson to issue an enforcement action at any
time without issuing a letter of concern or warning letter first, we believe the new requirement
that the Chair state his or her reasons for bypassing the voluntary compliance process within
the enforcement action provides a sufficient threshold for the Chair to meet, thus tempering
the use of this discretion. We also recommend changing Proposed Part 558.3 to require the
tribe to forward information to the NIGC only if the tribe denies a license, and not if the tribe
simply does not license the applicant.

We also support the proposed change eliminating the ability of the NIGC to issue a temporary
closure order if a tribe defrauds a customer. Part 522 requires every tribal gaming ordinance to
include a patron dispute resolution process and if the tribe alleged of defrauding the customer
does not follow this process, the NIGC can then issue an enforcement action. By deferring to
this process, the NIGC recognizes the ability of the tribe to both self-regulate and protect its
patrons.

The recently published Proposed Part 559 is a major improvement from the current rule. We
applaud the Commission for listening to tribal concerns and making appropriate changes to the
rule. The timeframes in the proposed rule are reasonable and provide flexibility for tribes when
Opening or closing a facility. The Spokane Tribe has always objected to the Environmental
Public Health and Safety requirements of the current rule. The requirement in the proposed
Part 559 that allows an attestation that the Tribe has determined the “construction and
maintenance of the facility and operation is conducted in a manner which adequately protects
the environment, public health and safety” appropriately reflects the inherent right of a tribe to
address the EPHS issues without NIGC oversight.

The Tribe also supports the major changes made to Part 518 in the Proposed Rule. Self-
regulation is a goal for many tribes but the current regulation made the application and
reporting process overly burdensome. By shifting the focus from the gaming operation to the
regulatory structure and revising the submission and reporting process, the proposed rule
opens the door to self-regulation to all tribes. Additionally, the clarification of the application
review process and inclusion of the Commission in the determination process provides a tribal
applicant the assurance that their application will be thoroughly vetted and a fair decision
reached by the appropriate decision-makers. Finally, the revised reporting requirements are