NIGC –Regulation R

Agenda

reg.review@nigc.gov

202.632.7009
Consultation

• Tribal consultation meet

between tribal governmethe federal government. tribes or their designees attend and participate in meetings. These meetinopen to the public.
Consultation (con

Executive Order 13,175 “Consultation and 

with Indian Tribal Governments”

Section 3 – Policymaking Criteria(c) When undertaking to formulate and implement po

implications, agencies shall:

(1) encourage Indian tribes to develop their own polic

program objectives;

(2) where possible, defer to Indian tribes to establish (3) in determining whether to establish Federal stand

tribal officials as to the need for Federal standards that would limit the scope of Federal standards or the prerogatives and authority of Indian tribes.
Regulatory Review – P

(cont’d)

• All consultations are trans• Written comments and tra

on NIGC website.
Commitment

• Every comment will be rev

considered.

• Any Proposed or Final Rul

include a summary of com

• Commission is committed 

and transparent process.
Consultation Agen

Group 1• Part 559 – Facility License 

Notifications, Renewals, and Submission. 

Group 2• Part 573 – Enforcement;

• Subchapter H – Proceedings 

Before the Commission

• Part 519 – Service; 

• Part 524 – Appeals;

• Part 539 – Appeals; and 

• Part 577 – Appeals Before the 

Commission.

Group 4• Part 556 

InvestigaKey Emp

• Part 558 

for Key EPMOs;

• Part 537 

InvestigaEntities WInterest iManagemfor, a Ma

• Part 502 
Consultation Agenda 

Group 5• Part 518 – Self Regulation of C

Gaming.
Group 1 Update

• Part 514 – Fees 

– Proposed Rule issued Oct. 11, 2011– Comment period closed Dec. 12, 2011– Final Rule approved at public meeting on Jan. 

Federal Register on February 2, 2012.

• Part 523 – Review and Approval of Existin

Resolutions

– Proposed Rule issued Oct. 12, 2011 – Comment period closed Dec. 12, 2011– Repeal approved at public meeting on Jan. 25, 

Federal Register on February 2, 2012.

• Part 559 – Facility License Notifications, R

Submissions

– Proposed Rule will be published Jan. 31, 2012– Comment period closes April 2, 2012.
Part 559 – Facility License No

Renewals, and Submis

• Proposed Rule:

– Maintains submittal of information 120 d

issuance of license.

• Tribe can request an expedited review confi

materials required under Part 559. Section 5

• Chair responds to request within 30 days.• Tribe may request a written confirmation from 

– Received comments that IGRA does no

Indian lands determination. Proposed rurequire NIGC to issue an Indian lands o

– Received comments that NIGC should c

issue facility licenses, not NIGC. Preampoint.
Part 559 – Facility License No

Renewals, and Submission

• Proposed Rule:

– Newly issued or renewed facility license 

within 30 days of issuance. Section 55

• Not many comments on this part of the disc

– Tribal attestation that Tribe has determ

construction and maintenance of facility conducted in manner which adequately environment, public health and safety. 

• Comments generally supported this approa

noted that these areas were covered by othagreements. Commentators further noted tfederal and state agencies may already reg
Part 559 – Facility License No

Renewals, and Submission

• Proposed Rule:

– Notice to NIGC within 30 days whe

terminated or expires, or if a facility Section 559.5.

– Notice is not required to be sent to 

seasonal closures or temporary cloless than 180 days. Section 559.5

• Comments generally supported this a

comments suggested shorter periods temporary or seasonal closure.
Part 559 – Facility Lice

Notifications, Renewals

Submissions (cont’

• Proposed Rule

– Repeals definition of “construction and 

of the gaming facility, and the operatiogaming is conducted in a manner whicprotects the environment and public hsafety” at 502.22 and incorporates it in 

– Additional information to be provided i

Section 559.6.

– Electronic submissions are accepted. – Comment period closes April 2, 2012.
Group 2 Overview

• Part 573

–

Enforcement

• Part 502 – Definitions• NPRM published on 

December 27, 2011.

• Comment period 

closes on February 27, 2012. 

• Regulatio

proceedinCommissi

– Part 519 – Part 524 – Part 539 – Part 577 

the Com

• NPRM pu

January 3

• Comment 

on April 2
Part 573 – Enforcem

• Proposed Rule:

– Voluntary compliance is goal of th

Commission. § 573.1

– Outlines a pre-enforcement action 

• Letter of concern or warning letter ma

by NIGC. § 573.2(a)

• Letter of concern provides available f

information that may be a violation. § 

• Warning letter confirms an assessme

and states necessary corrective actio

§ 573.2(b)(2) 
Part 573 – Enforcement 

• Proposed rule:

– Pre-enforcement action process (c

• Neither letter of concern nor non-com

is “agency action”. § 573.2(b)

• Either action may provide a time peri

respondent to come into voluntary co§ 573.2(d)

• If recommended corrective action is 

enforcement action may be taken. § 

• The pre-enforcement action process 

constrain the Chair’s discretion to iss§ 573.2(e)
Part 573 – Enforceme

Part 502 – Definitio

• Proposed rule:

– To supplement the amendments propo

573, the Commission proposed defininaction” to promote clarity to Part 573.

– Enforcement action is defined as any 

the Chair under 25 U.S.C. 2713 againengaged in gaming, for a violation of aIGRA, the regulations of this chapter, regulations, ordinances, or resolutions under 25 U.S.C. 2710 or 2712 of IGRAnot limited to, the following: a notice ocivil fine assessment; or an order for teclosure.
Part 573 – Enforceme

Part 502 – Definitio

• Comment period for Parts 573 

closes on February 27, 2012.
Proceedings before 

Commission

• Proposed Rule:

– Would repeal Part 519 – Servic

Appeals, Part 539 – Appeals, and Appeals Before the Commission. 

– Creates a new Subchapter H – P

before the Commission.

– NPRM published on Jan. 31, 201– Comment Period closes on April 
Subchapter H 

Proceedings Before the Co

• Proposed Rule:

– Subchapter H – Proceedings before the 

•Part 580 – Rules of general application in appeal pr

Commission.

•Part 581 – Motions in appeal proceedings before the •Part 582 – Appeals of disapprovals of gaming ordina

amendments.

•Part 583 – Appeals from approvals or disapprovals 

contracts or amendments to management contracts.

•Part 584 – Appeals before a presiding official of not

proposed civil fine assessments, orders of temporary decision to void or modify a management contracts, proposal to remove a certificate of self-regulation and and late fee assessments.

•Part 585 – Appeals to the Commission on written su

violation, proposed civil fine assessments, orders of Chair’s decision to void or modify a management conCommission’s proposal to remove a certificate of selof late fees and late fee assessments.
Subchapter H – Proce

Before the Commis

• Proposed Rule:

• Part 580 – Rules of general applicatio

proceedings before the Commission.

– Definitions– Suspension, revocation, amendment or w– Who may appear– Service– Burden of proof and standard of review– What will final decision contain– Effective date of final decision– Effect of lack of majority decision– Effect of appeal on Chair’s decision
Subchapter H – Proce

Before the Commis

• Proposed Rule:

• Comments suggested that the section con

appear before Commission was too restricbroadens standard of who may appear be

• Comments also expressed concern that th

communications section could stifle otherwcommunications. Commission invites comaddress ex parte communications.

• Comment suggested that filing of an appe

decision of the Chair. Proposed rule does change. 

• Comments suggested adding a section en

have access to record before appellate proparts provide for record to be made availaappellate brief.
Subchapter H – Proce

Before the Commis

• Proposed Rule:

• Part 581 – Motions in appellate proce

the Commission.

– Motion for limited participation in ordinan– Motion to intervene– Motion before a Presiding Official– Motion to supplement the record– Motion for reconsideration 
Subchapter H – Proce

Before the Commis

• Proposed Rule:

• Part 581 – Motions in appellate pro

the Commission.

• Comments suggested that 10 day t

opposition briefs on motions for recwas too short. Adjusted definition oholidays and weekends if time perio11 days. 

• Comments also suggested that the 

draft’s standard for reply briefs was Proposed rule provides for reply brfor reconsideration.
Subchapter H – Proce

Before the Commis

• Proposed Rule:

• Part 582 – Appeals of disapprovals of 

ordinances, resolutions, or amendme

– Who may appeal the disapproval of a ga– How to appeal the disapproval of a gami– Motions– Motion for limited participation– Copy of the record– When will decision be issued
Subchapter H – Proce

Before the Commis

• Proposed Rule:

• Part 582 – Appeals of disapprovals 

ordinances, resolutions, or amendm

• Very few comments on Part 582. • Comment suggested more clarity o

participation. Proposed rule provideprocess, including requiring motion participation within 10 days of filing 

• Comment also asked for clarity on 

Commission can refuse to grant apclarifies that Commission cannot reappeal.
Subchapter H – Proce

Before the Commis

• Proposed Rule:

• Part 583 – Appeals from approvals or 

of management contracts or amendmmanagement contracts.

– Who may appeal the approval/disapprov

contracts or amendments to managemen

– How to appeal the approval/disapproval 

contracts or amendments to managemen

– Motions– Copy of the Record– Decision – timing
Subchapter H – Proce

Before the Commis

• Proposed Rule:

• Part 583 – Appeals from approvals 

of management contracts or amendmanagement contracts.

• Very few comments on Part 583. C

suggested clarity why there may be an approval of management contraaddressed that comment in preamb

• Comment also asked for clarity on 

will be allowed under this Part. Proclarifies which motions are allowed
Subchapter H – Proce

Before the Commis

• Proposed Rule:

• Part 584 – Appeals before a presiding 

– Who may appeal – How to appeal – Motions– Motion to intervene– When the hearing will be held– Copy of the record– Hearing process– Confidential information– Process for settlement or consent decree– Objections to recommended decision fro

official

– When Commission will issue its decision
Subchapter H – Proce

Before the Commis

• Proposed Rule:

• Comments requested clarification on role of p

official. Proposed rule provides additional claprocess.

• Comments on whether party that has been d

limited intervention should be allowed to subbrief. Proposed rule eliminates limited interveallows for filing of amicus brief at discretion oofficial.

• Comment that on closure orders, decision sh

made within 30 days on whether or not to mapermanent. Proposed rule provides for hearin30 days unless waived by appellant and deciCommission within 30 days of receiving recodecision.

• Comment that rule should explain how confid

information should be handled when there is one party. Proposed rule adds section addreconfidential information.
Subchapter H – Proce

Before the Commis

• Proposed Rule:

• Part 585 – Appeals to the Commission 

submissions

– Who may appeal – How to appeal – Motions– Motions to intervene– Copy of the record– Decision – timing
Subchapter H – Proce

Before the Commis

• Proposed Rule:

• Comments requested clarification on if one 

hearing before presiding official and one pproceed under Part 585. The proposed ruissue.

• Comment that on closure orders, decision 

within 30 days on whether or not to make proposed rule provides for a decision with

• Comment that draft is too restrictive on wh

Tribe should be able to designate who maproposed rule provides for tribe to designa
Group 4 Overvie

• Proposed rules 

– Part 556 – Background Investigations 

Primary Management Officials and KEmployees;

– Part 558 – Gaming Licenses for Key 

Employees and Primary ManagemenOfficials;

– Part 537 – Background Investigations 

Persons or Entities With a Financial Iin, or Having Management Responsia Management Contract.

– Published on December 22, 2011– Comment period closes on February 

2012.
Part 556 – Background Investigation

Management Officials and Key Emplo

Gaming Licenses for Key Employee

Management Officials– Pilot Progr

• Proposed Rule:

– Formalizes the “Pilot Program”.– Part 556 includes all the procedure

gaming license is issued.

• Tribes seeking to license a Key Empl

Primary Management Official (PMO) background results within 60 days of § 556.6(b)(2). 

• Tribe with access to prior investigativ

another tribe or NIGC may update tho556.4(b)
Part 556 – Background Investigation

Management Officials and Key Emplo

Gaming Licenses for Key Employee

Management Officials– Pilot Progr

• Proposed Rule:

– Part 558 includes all the procedur

gaming license is issued.

• After Notice of Results (NOR), the tri

a KE or PMO. § 558.3(a)

• Tribe notifies NIGC within 30 days of 

558.3(d)

• NIGC has 30 days to request additio

§ 558.2(a)
Part 556 – Background Investigation

Management Officials and Key Emplo

Gaming Licenses for Key Employee

Management Officials– Pilot Progr

• Proposed Rule:

– Part 558 cont’d:

• NIGC notification within 30 days of re

558.2(b)

• If license issued prior to objection, lic

to notice and hearing. § 558.2(d)

• Tribe must suspend license until hea• Following hearing, tribe notifies NIGC 

558.4(e)

• If tribe does not license applicant, mu

and provide copy of eligibility determinvestigative report. § 558.3(c).
Part 537 – Background Investig

Persons or Entities With a Financi

or Having Management Respon

a Management Contrac

• Proposed Rule:

– Provides discretion to reduce 

background investigation and be furnished for any tribe, a trentity, national bank, or instituinvestor that is federally regulrequired to undergo a backgroinvestigation and licensure by tribe pursuant to a tribal-state § 537.1(d)
Part 518 – Self Regula

Class II Gaming

• Proposed Rule:

• Shifts focus from the gaming operation 

gaming regulatory agency.

• Reduce submission of duplicative infor• Make certification accessible to all tribe

maintaining existing standards.

• Comments stated that regulation shou

effectiveness of regulatory system rathoperation.

• NPRM published on Jan. 31, 2012.• Comment Period closes on April 2, 20
Part 518 – Self Regula

Class II Gaming (co

• Proposed Rule:

– Section 518.4. Submission Require

• History of gaming operations;• TGRA organizational chart;• Employment criteria for TGRA regu• TGRA funding description;• List of current TGRA regulators;• Description of the gaming operation

system;
Part 518 – Self Regula

Class II Gaming (co

• Proposed Rule:

– Section 518.4. Submission Requirements

• List of the internal controls;• Description of record-keeping system f

enforcement actions, and prosecutions

• Current tribal gaming regulations if not 

ordinance.

• Comments suggested that tribes shou

to submit copies of ordinances and othhave already been submitted to NIGC Commission removed requirement to slicense and NIGC approved ordinance
Part 518 – Self Regula

Class II Gaming (co

• Proposed Rule:

– Section 518.5. Criteria that must be 

• Tribe maintains: 

– effective and honest accounting of revenu– reputation for safe, fair, and honest operat– a fiscally and economically sound basis; a– operation generally free of criminal or dish

• Class II gaming has been conducte

with federal and tribal law/regulation
Part 518 – Self Regula

Class II Gaming (co

• Proposed Rule:

– Section 518.5. Criteria that must be 

• Tribe has adequate systems for:

– Accounting of revenues;– Investigation, licensing and monitoring 

employees; 

– Investigation, enforcement and prosec
Part 518 – Self Regula

Class II Gaming (co

• Proposed Rule:

– Section 518.5(b). Lists examples of how 

illustrate it has met the criteria. Examples 

• Tribal gaming regulatory body:

• Monitors compliance with applicable laws 

including MICS;

• Monitors effectiveness of revenue account• Audits class II gaming activities;• Reviews accounting information from oper
Part 518 – Self Regula

Class II Gaming (co

• Proposed Rule:• Section 518.7. Process to review petitions

• Office of Self Regulation conducts a review of t

days. Office notifies tribe if application is incom30 days to submit additional information.

• Within 120 days of application, Office provides 

and report to Commission and tribe; 

• Tribe has 30 days to respond to report• Commission then issues preliminary findings. T

hearing after receiving preliminary findings. 

• Commission issues final decision 30 days after 

findings or a hearing, whichever is later.

• Tribe may withdraw petition anytime prior to fina
Part 518 – Self Regula

Class II Gaming (co

• Proposed Rule:• Comments stated that the process for ce

clarification. Proposed rule attempts to prclarity.

• Comments stated that Commission itself 

petitions. Under proposed rule, Commisspreliminary findings and makes final dete

• Comments stated that process should fac

collaboration with NIGC to meet approvaProposed rule provides opportunities for technical assistance to petitioning tribe th
Part 518 – Self Regula

Class II Gaming (co

•Proposed Rule:

• Section 518.10. Annual reporting requireme

• Independent audit; and • Complete resume for all employees of tribal 

hired and licensed by the tribe after receiving 

regulation. 

• Section 518.11. Tribe has continuing duty t

Commission of change in circumstance matapproval criteria of this Part. Given this reporequirement, Commission removed annual requirement.

• Comments suggested Commission define “

NIGC has not done so in this proposed rule tribal regulatory bodies.
Part 518 – Self Regula

Class II Gaming (co

•Proposed Rule:

•Section 518.12. Provides reference to IGpowers limited during self-regulation.•Comments stated that the section in the cregulations is unclear and overbroad.•Comments suggested removing the sectiit to reiterate the statutory language of IGR
Contact us

reg.review@nigc.gov202.632.7009