NATIONAL INDIAN GAMING COMMISSION 

NOTICE OF VIOLATION 

TO: IPAY Nation of the Santa Ysabe1 Reservation 

Attn: Johy Hernandez, Chairman 

Highway 79 School House Road 

P.O. Box 130 

Santa Ysabel, CA 92070 

FAX: (760)765-0320 

Santa Ysabel Gaming Commission 

Attn: Silvanna Osuna, Chairperson 

P.O. Box 558 

Santa Ysabel, CA 92070 

FAX: (760) 765-0682 

1. Notification of Violation 

The Chairman of the National Indian Gaming Commission (NGC j hereby gives 

notice that the IIPAY Nation of the Santa Ysabel Reservation (Respondent or 

Tribe), located in Santa Ysabel, California, has violated 'NTGC regulations by 

failing to submit timely quarterly statements and fee payments for calendar year 

2008. 

2. Authoritv 

Under the Indian Gaming Regulatory Act (IGRA) and NGC regulations, the 

Chairman of the NTGC (Chairman) may issue a Notice of Violation (NOV) to any 

person for violation of any provision of the IGRA, NIGC regulations, or any 

provision of a tribal gaming ordinance or resolution approved by the Chairman. 

25 U.S.C. § 2713; 25 C.F.R. 5 573.3. 

3. Applicable Federal Laws and Regulations 

A. IGRA requires the NIGC to establish a schedule of fees to be paid to the 

Commission annually by each gaming operation that conducts a class II or 

class I11 gaming activity. 25 W.S.C. 9 27 17. 

B. NIGC regulations require that each gaming operation under the 

jurisdiction of the Commission shall pay to the Commission annual fees as 

established by the Commission. 25 C.F.R. $ 5 t 4. I (a). 
C. Each gming operation subject to the jurisdiction of the Commission and 

not exempt from paying fees pursuant to the self-regulation provisions 

shall file with the Commission a quarterly statement showing its 

assessable gross revenues for the previous calendar year. 25 C.F.R. 5 

5 14.1 (c). 

D. The quarterly statements are due March 3 1, June 30, September 30, and 

December 3 1 of each caIendar year the gaming operation is subject to the 

jurisdiction of the NIGC. 25 C.F.R. $5 14.1 (c)(2). The quarterly 

statements shall be transmitted to the Commission and arrive no Iater than 

the due date. 25 C.F.R. tj 5 14.1 (c)(4). 

E. NIGC regulations require each gaming operation to remit to the 

Commission the fees due each quarter with the quarterly statement. 25 

C.F.R. Ij 514.1(~#5). 

F. The NIGC may assess a penalty for failure to file timely a quarterly 

statement. 25 C.F.R. 5 5 1 4.1 (cj(9). 

G. NIGC regulations define "gaming operation" as '"each economic entity 

that is licensed by a hibe, operates the games, receives the revenues, 

issues the prizes and pays the expenses." A gaming operation may be 

operated by a tribe directly; by a management contractor; or, under certain 

conditions, by another person or other entity. 25 C.F.R. $502.1 0. 

4. Role af Quarterlv Fees and Quarterly Statements 

The annual fees collected by the NIGC are necessary in order to fund the agency's 

oversight and regulation of Indian gaming and sure based upon the quarterly 

statements submitted by Indian gaming operations. NIGC must set a fee rate 

sufficient to fund its annual budget, yet may not exceed the fee cap set by 

Congress. Thus, it is imperative that the NIGC receive quarterly statements from 

the gaming operations in a timely manner so that the NIGC is able to set accurate 

preliminary and final fee rates. 

5. Circumstances of the Violation 

A. Respondent is a federally recognized Indian Tribe with triba1 headquarters 

in Santa Ysabd, California. 

B. The Tribe operated its gaming operation, the Santa Ysabel Resort and 

Casino, during part of 2007 and aII of 2008. 

C. The NIGC received untimely quarterly statements and fee payments as 

follows: 
(i) for quarter ending March 3 1,2008, received fee payment on 

February 25.2009, 33 1 days late; 

(iij for quarter ending March 3 1,2008, received quarterly statement on 

April 8, 2009,373 days Eate; 

(iii) for quarter ending June 30,2008, received fee payment on 

February 25,2009,240 days late; 

(ivj for quarter ending June 30,2008, received quarterly statement on 

April 8,2009,282 days late; 

(v) for quarter ending September 30,2008, received fee payment on 

February 25,2009, 148 days late; 

(vi) for quarter ending September 30,2008, received quarterly 

statement on April 8,2009, 190 days late; 

(vii) for quarter ending December 3 1,2008, received fee payment on 

Febmary 25,2009,56 days late; and 

(viii] for quarter ending December 3 1,2008, received quarterly 

statement on ApriI 8,2009,98 days late. 

D. The Tribe's faiIure to submit timely quarterly statements and fee payments 

is a violation of NJGC regulations. 

6. Measures Required to Correct the Violation 

WhiIe there is no remedial action that can correct the untimely submission of 

quarterly statements and fees, improved controls to ensure timely submission of 

future quarterly statements and fees should be put in place. 

7. Appeal 

Within thirty (30) days after service of this Notice of Violation, Respondent may 

appeal to the full Commission under 25 C.F.R. Part 577 by submitting a notice of 

appeal, and, if desired, request for hearing to the National Indian Gaming 

Commission, 144 1 L Street NW, Suite 9 E 00, Washington, DC 20005. 

Respondent has a right to assistance of counsei in such an appeal. A notice of 

appeal must reference this Notice of Violation. 

Within ten (10) days after filing a notice of appeal, Respondent must file with the 

Commission a supplemental statement that states with particularity the relief 

desired and the grounds therefore and that includes, when available, supporting 
evidence in the form of affidavits. lf Respondent wishes to present oral testimony 

or witnesses at the hearing, Respondent must include a request to do so with the 

szlpp1ementaJ statement. The request to present oral testimony or witnesses must 

specify the names of proposed witnesses and the general nature of their expected 

testimony, whether a closed hearing is requested and why. Respondent may 

waives its right to an oral hearing and instead elect to have the matter determined 

by the Commission solely on the basis of written submissions. 

8. Fine-Submission of Information 

The violation cited above may result in the assessment of a civil fine against 

Respondent in an amount not to exceed $25,000 per violation per day. Under 25 

C.F.R. 5 575.5(a], Respondent may submit written information about the violation 

to the Chairman within fifteen (1 5) days after service of this notice of violation 

(or such longer period as the Chairman may pt for good cause). The Chainnan 

shaIl consider any information submitted in determining the facts surrounding the 

violation and the amount of the civil fine, if any. 

9. Assessment of Interest 

Interest may be assessed at rates set by the Secretary of the Treasury on amounts 

remaining unpaid after their due date. 3 1 U.S.C. 5 371 7 and 25 C.F.R. 5 

514 -1 (c)(lO). 

fl Dated this gyof ~u~, 2009 <- 

</ 

Chairman 

Staff Attorney 
Certificate of Service 

I certify that this Notice of Violation was sent by facsimile transmission and certified 

US. mail, return receipt requested, on this E'~ day of June, 2009 to: