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Copyright 1995 FDCHeMedia, Inc. All Rights Reserved. 

Federal Document Clearing House Congressional Testimony 

May 11, 1995, Thursday 

SECTION: CAPITOL HILL HEARING TESTIMONY 

LENGTH: 2735 words 

HEADLINE: TESTIMONY May 11, 1995 HAROLD A. MONTEAU CHAIRMAN NATIONAL 

INDIAN GAMING COMMISSION SENATE APPROPRIATIONS INTERIOR FY96 INTERIOR 

APPROPRIATIONS 

BODY: 

 

 SENATE APPROPRIATIONS SUBCOMMITTEE ON INTERIOR AND RELATED 

AGENCIES 

 NATIONAL INDIAN GAMING COMMISSION 

 WITNESS LIST 

 Thursday, May 11, 1995 

 TESTIMONY OF HAROLD A. MONTEAU 

 CHAIRMAN, NATIONAL INDIAN GAMING COMMISSION 
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 TESTIMONY May 11, 1995 HAROLD A. MONTEAU CHAIRMAN NATIONAL INDIAN GAMING 

COMMISSION SENATE APPROPRIATIONS INTERIOR FY96 INTERIOR APPROPRIATIONS Federal Document 

Clearing House Congressional Testimony 

 BEFORE THE SENATE APPROPRIATIONS SUBCOMMITTEE ON INTERIOR AND 

RELATED AGENCIES 

 May 11, 1995 

 Mr. Chairman, Members of the Committee, thank you for the opportunity to appear before you 

today. My name is Harold Monteau. I am the Chairman of the National Indian Gaming Commission. With me today is Commissioner Jana McKeag. 

 Background 

 The Indian gaming industry began in the 1970's but the National Indian Gaming Commission 

was not established until 1988. The first Chairman of the Commission was appointed in 1990 and 

the remaining two commission members were appointed in 1990 and 1991. The Commission developed, proposed, and issued regulations over the next 21 months. Finally, about 15 years after the 

industry began, the commission became operational in early 1993. 

 It was concern about the need for regulation and Federal oversight of the approximately 100 

gaming operations existing in 1986 that led to the passage of the Act and the formation of this 

Commission. Meanwhile, Indian gaming has been growing in size and complexity. Approximately 

200 Indian tribes have become, or are becoming, engaged in or have licensed over 225 gaming operations on Indian lands. Tribes continue to open new and expand existing gaming operations. 

 The Commission, an independent three-person regulatory agency administratively located 

within the Department of the Interior, was established by the Indian Gaming Regulatory Act 

(IGRA) which was signed into law on October 17, 1988. The IGRA was enacted as a response to 

the proliferation of tribal gaming establishments in Indian Country operating without federal regulatory oversight. 
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 TESTIMONY May 11, 1995 HAROLD A. MONTEAU CHAIRMAN NATIONAL INDIAN GAMING 

COMMISSION SENATE APPROPRIATIONS INTERIOR FY96 INTERIOR APPROPRIATIONS Federal Document 

Clearing House Congressional Testimony 

 The primary purpose of the Commission is to monitor and oversee the regulation of class II 

gaming such as bingo and pull tabs conducted on Indian lands. The Commission also approves 

class III tribal gaming ordinances and management contracts and has the authority to impose civil 

penalties or to close a gaming establishment for substantial violations of the IGRA, regulations 

promulgated by the commission, or tribal gaming ordinances. 

 The Commission conducts background investigations of entities and individuals with a financial interest in, or management responsibility for, class II management contracts, but not for class 

III management contracts. The regulation of class III gaming -- casino type gaming such as blackjack and slot machines -- is primarily the responsibility of the tribes and the states as set forth in the 

compacts negotiated between those parties. 

 While the authorities and responsibilities of the Commission as set forth in the IGRA are fairly 

straightforward, in reality they are considerably more extensive and complex. For example, 

 - The number and complexity of gaming operations have been increasing steadily. 

 - Many class III operations include class II games, activating the Commission's involvement 

and triggering the need for, among other things, background investigations of contractor entities and 

individuals. 

 - Many management contracts involve provisions calling for the construction of new or the expansion of existing facilities, triggering the requirements imposed by the National Environmental 

Policy Act, the National Historic Preservation Act, and the Endangered Species Act. 

 - Some of the other regulators of Indian gaming, both tribes and states, have been reluctant to, 

or at least slow to, begin undertaking their responsibilities under the Act, placing a greater burden 

on the Commission. 
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 TESTIMONY May 11, 1995 HAROLD A. MONTEAU CHAIRMAN NATIONAL INDIAN GAMING 

COMMISSION SENATE APPROPRIATIONS INTERIOR FY96 INTERIOR APPROPRIATIONS Federal Document 

Clearing House Congressional Testimony 

 - Some tribes, management contractors, and gaming operations have not voluntarily complied 

with the provisions of the Act, creating an immediate backlog of serious compliance problems requiring action by the Commission. 

 - Many other government agencies, initially at least, have been reluctant to share important information with the commission in part at least because the Commission lacks status as a law enforcement agency. 

 Activities 

 Operational since 1993, the Commission is reviewing all tribal ordinances, management contracts, and reports on tribally conducted background investigations of key employees and primary 

management officials. The Commission itself is conducting or causing to be conducted background 

investigations and making suitability determinations on individuals and entities with a financial interest in, or management responsibility for, a management contract. The Commission is continuing 

to conduct introductory, on-site reviews of all gaming operations. 

 The review and approval of tribal gaming ordinances is important for three reasons: 

 1) their approval activates two Federal criminal statutes which concern theft from Indian gaming establishments; 

 2) their approval triggers the requirement that the tribe conduct background investigations on 

the key employees and primary management officials of a gaming operation; and 

 3) their approval triggers the requirements for an annual, independent audit. 

 We have reviewed over 200 ordinances and approved 170. 

 Charged with approving all class II and class III management contracts, the Commission has 

received a significant number of new management contracts for review and approval, and has begun 

calling in existing contracts that were approved by the Secretary of the Interior prior to the commis-
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 TESTIMONY May 11, 1995 HAROLD A. MONTEAU CHAIRMAN NATIONAL INDIAN GAMING 

COMMISSION SENATE APPROPRIATIONS INTERIOR FY96 INTERIOR APPROPRIATIONS Federal Document 

Clearing House Congressional Testimony 

sion becoming operational in early 1993. Background investigations are being conducted in order 

to determine the suitability of the hundreds of individuals and entities involved. Sixteen (16) management contracts have been approved, about sixty (60) are in process at various stages, and approximately thirty-five (35) contracts previously approved by the Secretary of the Interior need to 

be called in for review. 

 We have been building the Commission staff over the past four years fully aware of (1) the responsibilities given to the Commission, (2) the growth and complexity of the industry, and (3) the 

funding available. We have reached a size that can no longer be supported by the amount of appropriated funds and fees, and have thus begun using a portion of the remaining accumulated fees to 

make up the deficiency. We need to build the Commission staff for the long-term needs of the industry, not just to meet the short term or immediate needs alone. The funding uncertainties, the 

statutory limitations, and the growing needs of the industry dictate that we request and obtain 

maximum funding while retaining a portion of the fees to cope with unknown funding and industry 

driven needs. 

 1996 Budget Request 

 As you know, the President's FY 96 Budget requested $1,000,000 for our agency. At the same 

time, as part of the President's Reinventing Government Initiative, all Federal agencies are reexamining their mission. This includes: addressing the mission based on "customer" input; asking 

whether the mission could be accomplished as well or better without Federal involvement; looking 

for ways to cut costs or improve performance through competition; and ways to put customers first, 

cut red tape, and empower employees. We are actively participating in this effort and will be keeping the subcommittee fully apprised of our review. 
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 TESTIMONY May 11, 1995 HAROLD A. MONTEAU CHAIRMAN NATIONAL INDIAN GAMING 

COMMISSION SENATE APPROPRIATIONS INTERIOR FY96 INTERIOR APPROPRIATIONS Federal Document 

Clearing House Congressional Testimony 

 Operating costs of the Commission are financed in part through annual assessments paid by 

class II gaming operations to the Commission to cover part of the operating costs it incurs in performing its required regulatory functions. Federal appropriations are requested to cover all other 

operating costs. Annual assessments and appropriations are each limited by the IGRA to 

$1,500,000 thus providing the commission with a maximum annualized operating budget of 

$3,000,000, with no provisions for industry growth or increases in operating costs. 

 The Act allows the commission to request appropriated funds in an amount equal to the amount 

of funds derived from assessments for the fiscal year preceding the fiscal year for which the appropriation request is made. The Commission's 1996 request for $1,000,000 is based on the assumption that it will derive fees of $1,500,000, thus enabling it to operate at a spending level of 

$2,500,000. 

 Unfortunately, there is more work mandated and needed than can be done within the 

$3,000,000 statutory limitation. Fortunately however, the Commission for now has available fees it 

collected but did not use in the first three and one-half years of its operation. 

 The Commission began collecting fees in FY 1991 but did not begin using them until FY 1993. 

The Commission decided to retain those fees and use them to process the backlog of reviews and 

investigations that accumulated while the Commission developed, proposed, and issued regulations. 

The Commission expects to use approximately $1,500,000 of the remaining fees in FY 1995 and 

1996 for operations, to process the backlog, and, as needed, to undertake special investigations and 

enforcement actions. 

 In addition, relative to its mission, the commission will incur costs and receive reimbursements 

for processing criminal records checks and conducting certain background investigations. The costs 

incurred and reimbursements received for these activities are estimated to be $1,250,000. It should 
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 TESTIMONY May 11, 1995 HAROLD A. MONTEAU CHAIRMAN NATIONAL INDIAN GAMING 

COMMISSION SENATE APPROPRIATIONS INTERIOR FY96 INTERIOR APPROPRIATIONS Federal Document 

Clearing House Congressional Testimony 

be noted however that although the Commission receives reimbursement for processing criminal 

records checks and for the costs of background investigations, the Commission is also limited by 

the number of FTEs authorized. As a consequence, the Commission must limit certain program 

work to use FTEs for background investigations. 

 Positions 

 Through last calendar year, the Commission was limited to 28 FTES. However, 5 more FTEs 

for the current year and 4 more FTEs for 1996 have now been allocated to the commission giving it 

a total of 33 FTEs for 1995 and 32 FTEs for 1996. The Commission has been, and will continue 

using these FTEs to perform its various functions roughly as follows: 1995 1996 

 Commission Members 3 3 

 General Counsel 1 1 

 Executive Director 1 1 

 Ordinance reviews 2 1 

 Management contract reviews Financial reviews 2 2 Legal reviews 1 1 NEPA compliance 1 1 

Background investigations 3 3 Administrative support 1 1 

 Tribal background investigations/ fingerprint card processing 4 4 

 Enforcement actions 2 2 

 Communications (including FOIA and Privacy Act) 1 1 

 Information systems and data base management 2 2 

 Accounting (fees, investigation expenses, etc.) 1 1 

 Field visits with tribes and gaming operations 2 2 

 Liaison with regulators/law enforcement agencies 2 2 

 Administrative appeals and litigation support 2 2 
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 TESTIMONY May 11, 1995 HAROLD A. MONTEAU CHAIRMAN NATIONAL INDIAN GAMING 

COMMISSION SENATE APPROPRIATIONS INTERIOR FY96 INTERIOR APPROPRIATIONS Federal Document 

Clearing House Congressional Testimony 

 Other administrative support 2 2 Total 33 32 

 Fee Assessments and Use 

 As noted previously, a substantial portion of the Commission's FY 1996 operating expenses 

will be derived from sources other than appropriations: 

 Fees: 

 Current FY 1,500,000 

 Prior years' 1,445,000 

 Subtotal $2,945,000 

 Reimbursements: 

 Costs of background investigations 1,000,000 

 Fingerprint checks 250,000 

 Subtotal $4,195,000 

 Appropriations 1,000,000 

 Total $5,195,000 

 In addition to the fees to be collected in FY 1996, the Commission will have collected approximately $6,000,000 in fees before the end of FY 1995. Any unused fees remain available to the 

Commission without limitation. 

 The Commission has been, and will continue, using these funds to supplement its operating 

costs, and in a one-time effort, to reduce the very large backlog of management contracts, ordinances and enforcement cases that have been accumulating. A portion will be used for investigatory and other necessary services on a contractual basis. our legislation authorizes us to enter into 

contracts with Federal, state, tribal and private entities for activities necessary to the discharge of 

the duties of the Commission. We intend to, where appropriate, use this authority to acquire, as 
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 TESTIMONY May 11, 1995 HAROLD A. MONTEAU CHAIRMAN NATIONAL INDIAN GAMING 

COMMISSION SENATE APPROPRIATIONS INTERIOR FY96 INTERIOR APPROPRIATIONS Federal Document 

Clearing House Congressional Testimony 

needed, necessary expertise and temporary personnel to avoid the build-up of an unwieldy permanent staff. 

 It is the Commission's intent that some of the funds obtained through assessments be kept 

available for use for special investigations and the support of law enforcement efforts. 

 Finally, I am pleased to be able to say that we are making progress in our regulatory efforts and 

in attaining cooperation in the field from most of the tribes. In the past 2 years we have brought 170 

tribal ordinances into compliance with IGRA. We have approved sixteen management contracts, 

three modifications, and have some sixty more awaiting review, final revisions, or additional information from the tribe or contractor. We have also taken enforcement actions such as closing five 

illegally operating halls and curtailing illegal activity at a sixth, and causing unsuitable management 

contractors to leave Indian gaming as contractors. We have conducted workshops and participated 

in seminars to help tribes comply with our regulations and issued numerous Bulletins to inform and 

educate the Indian gaming industry. Our field representatives have visited almost all of the class II 

and most of the class III operations throughout the country to explain IGRA to the tribes and to 

make recommendations to the tribes on how to comply with our regulations. 

 Mr. Chairman, this concludes my opening statement. Again, I appreciate the opportunity to 

discuss these matters with you and will be pleased to answer any questions the Committee may 

have. 

 HAROLD A. MONTEAU 

 1850 M Street NW 

 Suite 250 

 Washington, DC 20036 

 (202) 632-7003 
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 TESTIMONY May 11, 1995 HAROLD A. MONTEAU CHAIRMAN NATIONAL INDIAN GAMING 

COMMISSION SENATE APPROPRIATIONS INTERIOR FY96 INTERIOR APPROPRIATIONS Federal Document 

Clearing House Congressional Testimony 

 EDUCATION: University of New Mexico School of Law, Albuquerque, New Mexico Juris 

Doctor, May 1986 

 University of South Dakota, Vermillion, South Dakota 

 M.A. ED., Ed. Admin., May 1977 

 Northern Montana College, Havre, Montana 

 B.S. Elementary Ed. 1975 

 Box Elder, High School 

 Box Elder, Montana, 1971 

 PROFESSIONAL 

 Chairman, National Indian Gaming Commission 

 October 1994 to present 

 National Tribal Coordinator, Joint Tribal, Department of Interior, BIA Task Force on BIA Reorganization 1991-1994 

 Private Practice, Federal Indian Law emphasis 

 Monteau, Guenther, Smith & Parker, P.C. 

 June 1990 to September 1994 

 Tribal Attorney, Chippewa Cree Tribe 

 Box Elder, Montana 

 April 1989 to June 1991 

 Tribal Attorney, Confederated Salish and Kootenai Tribes of the Flathead Reservation 

 Pablo, Montana 

 June 1986 to May 1989 

 Instructor, Federal Indian Law, Stone Child College 
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 TESTIMONY May 11, 1995 HAROLD A. MONTEAU CHAIRMAN NATIONAL INDIAN GAMING 

COMMISSION SENATE APPROPRIATIONS INTERIOR FY96 INTERIOR APPROPRIATIONS Federal Document 

Clearing House Congressional Testimony 

 Rocky Boy, Montana 

 1989 (Fall semester) 

 Student Intern, University of New Mexico Law School 

 Clinical Legal Services 

 Fall 1985 to Spring 1986 

 Legal Research Assistant, Indian Pueblo Legal Services and American Indian Law Center, Inc. 

 Summer 1985 

 Indian Law Tutor, American Indian Law Center 

 Albuquerque, New Mexico 

 Summers 1984 and 1985 

 Principal (K-8), Rocky Boy Elementary School 

 Box Elder, Montana 

 1980 to 1983 

 Director of Tribal Health Department and Tribal Health Planning, Rocky Boy Health 

 Board 

 Box Elder, Montana 

 1978 to 1980 

 Principal (K-8), Brockton Elementary School 

 Brockton, Montana 

 1977 to 1978 

 Instruction, Coaching, Rocky Boy schools 

 Box Elder, Montana 

 1972 to 1980 
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 TESTIMONY May 11, 1995 HAROLD A. MONTEAU CHAIRMAN NATIONAL INDIAN GAMING 

COMMISSION SENATE APPROPRIATIONS INTERIOR FY96 INTERIOR APPROPRIATIONS Federal Document 

Clearing House Congressional Testimony 

 ACTIVITIES AND AWARDS 

 Billings Area Representative, Secretary of Interior's Task Force on Reorganization of the Bureau of Indian Affairs 1991 to 1994 

 Board Member for Montana Human Rights Network 1992 to 1994 

 Board of Directors, Federal Indian Bar Association 1991 to 1992 

 Member National Congress of American Indians 1986 to present 

 Montana Gaming Advisory Council, Helena, Montana 1989 to 1990 

 Montana Indian Gaming Commission of the Montana/Wyoming Tribal Chairman's Association 

1992 to present 

 UNM Law School Honor Roll Fall 1984 and Spring 1985 

 UNM Law School Dean's List Fall 1985 

 Panel member to American Bar Association Task Force on Minorities in the Law, ABA, Detroit, Michigan 1985 

 President, UNM Chapter of the American Indian Law Students Association, Member National 

AILSA, Student Member NCAI 1984 to 1986 

 ADMISSIONS 

 State Courts of Montana U.S. District Court 9th Circuit Court of Appeals Tribal Courts 

LOAD-DATE: May 15, 1995