The Confederated Tribes of the Grand Ronde Community of Oregon

W) hon Council
A oy Phone (503) 879-2301
EEA 1-800-422-0232 9615 Grand Ronde Rd.
( ( () ) \ Fax (503) 879-5964 Grand Ronde, OR 97347

February 10, 2011

Lael Echo-Hawk via electronic submission to
National Indian Gaming Commission reg.review@nigc.gov

1441 L Street N.W., Suite 9100

Washington, DC 20005

Re: NIGC Regulatory Review Comments

Dear Ms. Echo-Hawk:

The Confederated Tribes of the Grand Ronde Community of Oregon (“Grand Ronde”)
respectfully submits the following comments in response to NIGC’s letter of December 17,
2010, and the Notice of Inquiry and Request for Information; Notice of Consultation published
in the Federal Register on November 18, 2010. Grand Ronde appreciates this opportunity to
comment and the opportunity to meet with NIGC on January 14, 2011, at the Little Creek Casino
Resort in Shelton, Washington.

Self-Regulation of Class II

Grand Ronde is proud to be one of the two tribes that have earned a Certificate of Self-
Regulation. We take great pride in our proven ability to regulate our gaming operation at a level
far above minimum requirements. The process for obtaining a Certificate of Self-Regulation
involves hard work and commitment to regulation. In fact, high standards should be required in
order to achieve self-regulation.

That being said, there must be clear benefits associated with a Certificate of Self-Regulation.
Grand Ronde has urged NIGC to provide more recognition and benefits to self-regulated tribes
on multiple occasions, but to no avail. For example, Grand Ronde has urged NIGC to exempt
self-regulated tribes from independent MICS audits and facility license regulations. Grand
Ronde has also urged NIGC to consult directly with self-regulated tribes on proposed regulations
and guidelines.

Grand Ronde is pleased that the new Commission is reviewing the self-regulation regulations
and we encourage NIGC to accord such review the highest priority. NIGC should not weaken
the standards for obtaining a Certificate; instead, NIGC should revise the regulations to give full
effect to IGRA’s self-regulation provisions and the overall intent of IGRA to promote tribal

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NIGC Regulatory Review Comments
February 10, 2011
Page 2

economic development, tribal self-sufficiency and strong tribal governments. To do this, NIGC
should evaluate every regulation and MICS to determine whether it impacts one of the powers
described in 25 U.S.C. § 2706(b)(1)-(4) from which Congress exempted self-regulated tribes. If
one of the powers is impacted, NIGC should indicate in the language of the regulation or MICS
how the regulation or MICS will not apply to self-regulated tribes. This analysis and inclusion in
the regulation or MICS will also be beneficial in demonstrating to other tribes the benefits of
self-regulation.

In terms of process, Grand Ronde recommends that NIGC first consult with self-regulated tribes
regarding potential revisions to the regulations. Following that consultation, we recommend
NIGC utilize standard notice and comment rulemaking.

Class I] Minimum Internal Control Standards

Grand Ronde supports striking the Class III MICS and replacing them with a set of
recommended guidelines. Tribes then have the choice to adopt the recommended guidelines, or
parts of the guidelines, as their own Tribal Class III MICS if tribes find them helpful and
appropriate.

Sole Proprietary Interest Regulation

Grand Ronde supports establishing a regulation with clear guidelines for determining whether a
tribe has sole ownership interest in the gaming operation. Unfortunately there are circumstances
where individuals and organizations control tribal gaming operations to the extent that they truly
have an ownership interest in gaming profits. The tribes then receive a small portion of the
gaming profits to use for governmental purposes and never really achieve the level of self-
sufficiency envisioned by IGRA. We believe providing guidelines and allowing tribes to receive
NIGC review of contracts and a determination of whether the sole proprietary interest provision
is violated will be a benefit to tribes. In terms of process, Grand Ronde recommends NIGC
utilize standard notice and comment rulemaking.

NIGC Communication with Tribes

Grand Ronde understands that NIGC deals regularly with tribal gaming commissions as the
primary regulators of tribal gaming. NIGC also has an obligation to respect the government-to-
government relationship it has with each tribe which is generally governed by a form of tribal
council. We believe there is a need for flexibility in communication to allow effective and
efficient regulation. NIGC should determine a general standard for communication absent the
need for direct instruction from a tribe by tribal council resolution. The general standard could
be that technical regulatory matters are addressed with the tribal gaming commission with copies
of communication to the tribal council and broad policy and any compliance related matters are
communicated directly to the tribal council. Grand Ronde believes having a standard form of

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NIGC Regulatory Review Comments
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communication from which tribes can opt out will help clear up any confusion on the appropriate
lines of communication.

Thank you again for the opportunity to comment regarding NIGC’s regulatory review process.
Grand Ronde appreciate your efforts in reviewing all the regulations and determining whether
amendments or new regulations are necessary to more effectively implement IGRA. Please
contact me at (503) 879-2352 or our Gaming Commission Executive Director, Michael Boyce, at
(503) 879-2360 if you have any questions.

Very truly yours, Eine

Che: fc . Kennedy
Chairwornan,

ce: Tribal Council
Grand Ronde Gaming Commission
Tribal Attorney’s Office

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