Federal Register / Vol. 82, No. 217 / Monday, November 13, 2017 / Proposed Rules 52253 

1977 (NARETPA), as amended, or under 

sections 3(b) and (c) of the Smith-Lever 

Act, 7 U.S.C. 343(b) and (c) or under 

section 3 of the Hatch Act of 1887, 7 

U.S.C. 361c. 

Eligible institution means a college or 

university eligible to receive funds 

under the Act of August 30, 1890 (7 

U.S.C. 321 et seq.) (commonly known as 

the Second Morrill Act), including 

Central State University, Tuskegee 

University, and West Virginia State 

University (1890 land-grant 

institutions), and a college or university 

designated under the Act of July 2, 1862 

(7 U.S.C. 301, et seq.) (commonly 

known as the First Morrill Act) and 

located in the Commonwealth of Puerto 

Rico and the insular areas of American 

Samoa, Guam, Micronesia, Northern 

Marianas, and the Virgin Islands (1862 

land-grant institutions in insular areas). 

Matching funds means funds from 

non-Federal sources, including those 

made available by the State to the 

eligible institutions, for programs or 

activities that fall within the purposes of 

agricultural research and cooperative 

extension under: sections 1444 and 

1445 of NARETPA; the Hatch Act of 

1887; and the Smith-Lever Act. 

* * * * * 

■ 2. Amend § 3419.2 as follows: 

■ a. Remove the introductory text; 

■ b. Revise Paragraphs (a) and (b). 

The revisions read as follows: 

§ 3419.2 Matching funds requirement. 

(a) 1890 land-grant institutions: The 

distribution of capacity funds are 

subject to a matching requirement. 

Matching funds will equal not less than 

100% of the capacity funds to be 

distributed to the institution. 

(b) 1862 land-grant institutions in 

insular areas: The distribution of 

capacity funds are subject to a matching 

requirement. Matching funds will equal 

not less than 50% of the capacity funds 

to be distributed to the institution. 

* * * * * 

§ 3419.3 [Removed] 

■ 3. Remove § 3419.3 

§ 3419.4 [Redesignated as § 3419.3] 

■ 4. Redesignate § 3419.4 as § 3419.3 

and revise it to read as follows: 

§ 3419.3 Limited waiver authority. 

(a) 1890 land-grant institutions: The 

Secretary may waive the matching funds 

requirement in 7 CFR 3419.2 above the 

50% level for any fiscal year for an 

eligible institution of a State if the 

Secretary determines that the State will 

be unlikely to satisfy the matching 

requirement. 

(b) 1862 land-grant institutions in 

insular areas: The Secretary may waive 

up to 100% of the matching funds 

requirements in 7 CFR 3419.2 for any 

fiscal year for an eligible institution in 

an insular area. 

(c) The criteria to waive the 

applicable matching requirement for 

1890 land-grant institutions and 1862 

land-grant institutions in insular areas is 

demonstration of one or more of the 

following: 

(1) Impacts from natural disaster, 

flood, fire, tornado, hurricane, or 

drought; 

(2) State and/or institution facing a 

financial crisis; or 

(3) Lack of matching funds after 

demonstration of good faith efforts to 

obtain funds. 

(d) Approval or disapproval of the 

request for a waiver will be based on the 

application submitted, as defined under 

§ 3419.4. 

■ 5. Add new § 3419.4 to read as 

follows: 

§ 3419.4 Applications for waivers for both 

1890 land-grant institutions and 1862 landgrant institutions in insular areas. 

Application for waivers for both 1890 

land-grant institutions and 1862 landgrant institutions in insular areas. The 

president of the eligible institution must 

submit any request for a waiver for 

matching requirements. A waiver 

application must include the name of 

the eligible institution, the type of 

Federal capacity funds (i.e. research, 

extension, Hatch, etc.), appropriate 

fiscal year, the basis for the request (e.g. 

one or more of the criteria identified in 

§ 3419.3); current supporting 

documentation, where current is 

defined as within the past two years 

from the date of the letter requesting the 

waiver; and the amount of the request. 

§ 3419.5 [Amended] 

■ 6. Amend § 3419.5 by removing the 

word ‘‘formula’’ and adding, in its 

place, the word ‘‘capacity’’. 

■ 7. Revise § 3419.6 to read as follows: 

§ 3419.6 Use of matching funds. 

The required matching funds for the 

capacity programs must be used by an 

eligible institution for the same purpose 

as Federal award dollars: Agricultural 

research and extension activities that 

have been approved in the plan of work 

required under sections 1445(c) and 

1444(d) of the National Agricultural 

Research, Extension, and Teaching 

Policy Act of 1977, section 7 of the 

Hatch Act of 1887, and section 4 of the 

Smith-Lever Act. For all programs, 

tuition dollars and student fees may not 

be used as matching funds. 

§ 3419.7 [Redesignated as § 3419.8] 

■ 8. Redesignate § 3419.7 as § 3419.8, 

and add a new § 3419.7 to read as 

follows: 

§ 3419.7 Reporting of matching funds. 

Institutions will report all capacity 

matching funds expended annually 

using Standard Form (SF) 425, in 

accordance with 7 CFR 3430.56(a). 

■ 9. Revise newly redesignated § 3419.8 

to read as follows: 

§ 3419.8 Redistribution of Funds. 

Unmatched research and extension 

funds will be reapportioned in 

accordance with the research and 

extension statutory distribution 

formulas applicable to the 1890 and 

1862 land-grant institutions in insular 

areas, respectively. Any redistribution 

of funds must be subject to the same 

matching requirement under § 3419.2. 

Done at Washington, DC, on November 2, 

2017. 

Sonny Ramaswamy, 

NIFA Director, National Institute of Food and 

Agriculture. 

[FR Doc. 2017–24327 Filed 11–9–17; 8:45 am] 

BILLING CODE 3410–22–P 

NATIONAL INDIAN GAMING 

COMMISSION 

25 CFR Part 514 

Fees 

AGENCY: National Indian Gaming 

Commission. 

ACTION: Proposed rule. 

SUMMARY: The National Indian Gaming 

Commission proposes to amend its fee 

regulations. The proposed rule would 

require the Commission to adopt annual 

fee rates no later than November 1 of 

each year. In addition, the proposed rule 

defines the fiscal year of the gaming 

operation that will be used for 

calculating the fee payments. Finally, 

the proposed rule includes additional 

revisions intended to clarify the fee 

calculation and submission process for 

gaming operations. 

DATES: The agency must receive 

comments on or before December 28, 

2017. 

ADDRESSES: You may send comments by 

any of the following methods: 

• Email: 514_Comments@nigc.gov. 

• Fax: 202–632–7066. 

• Mail: National Indian Gaming 

Commission, 1849 C Street NW., MS 

1621, Washington, DC 20240. 

• Hand Delivery: National Indian 

Gaming Commission, 90 K Street NE., 

Suite 200, Washington, DC 20002, 


asabaliauskas on DSKBBXCHB2PROD with PROPOSALS
52254 Federal Register / Vol. 82, No. 217 / Monday, November 13, 2017 / Proposed Rules 

between 9 a.m. and 5 p.m., Monday 

through Friday, except Federal holidays. 

FOR FURTHER INFORMATION CONTACT: 

Austin Badger, National Indian Gaming 

Commission; Telephone: 202–632–7003. 

SUPPLEMENTARY INFORMATION: 

I. Comments Invited 

Interested parties are invited to 

participate in this proposed rulemaking 

by submitting such written data, views, 

or arguments as they may desire. 

Comments that provide the factual basis 

supporting the views and suggestions 

presented are particularly helpful in 

developing reasoned regulatory 

decisions on the proposal. 

II. Background 

The Indian Gaming Regulatory Act 

(IGRA or Act), Public Law 100–497, 25 

U.S.C. 2701 et seq., was signed into law 

on October 17, 1988. The Act 

establishes the National Indian Gaming 

Commission (NIGC or Commission) and 

sets out a comprehensive framework for 

the regulation of gaming on Indian 

lands. The IGRA established an agency 

funding framework whereby gaming 

operations licensed by tribes pay a fee 

to the Commission for each gaming 

operation that conducts Class II or Class 

III gaming activity that is regulated by 

IGRA. 25 U.S.C. 2717(a)(1). These fees 

are used to fund the Commission in 

carrying out its regulatory authority. 

Fees are based on the gaming 

operation’s gross revenues. The rate of 

fees is established annually by the 

Commission and shall be payable on a 

quarterly basis. 25 U.S.C. 2717(a)(3). 

IGRA limits the total amount of fees 

imposed during any fiscal year to 0.08 

percent of the gross gaming revenues of 

all gaming operations subject to 

regulation under IGRA. Failure of a 

gaming operation to pay the fees 

imposed by the Commission’s fee 

schedule can be grounds for a civil 

enforcement action. 25 U.S.C. 

2713(a)(1). 

The purpose of Part 514 is to establish 

how the NIGC sets and collects those 

fees, to establish a basic formula for 

tribes to utilize in calculating the 

amount of fees to pay, and to advise of 

the consequences for failure to pay the 

fees. Part 514 further establishes how 

the NIGC determines and assesses 

fingerprint processing fees. 

Under the current fee regulations, the 

Commission adopts a preliminary fee 

rate by March 1 and a final fee rate by 

June 1 of every year. In addition, the 

NIGC annually reviews the costs 

involved in processing fingerprint cards 

and adopts a preliminary rate by March 

1 and a final rate by June 1. The 

Commission believes that the current 

process would be improved by moving 

to an annual final fee rate announced on 

or before November 1 of each year. This 

change would improve the 

Commission’s analysis and budgeting 

process and simplify the fee calculation 

and payment process for gaming 

operations, thereby reducing the 

frequency of error in fee calculation. 

Proposed changes to the fee regulations 

were therefore included as a topic in a 

November 22, 2016, letter to tribal 

leaders introducing the Commission’s 

2017 consultation series. 

III. Development of the Proposed Rule 

On March 24, 2017, in Tulsa, OK, 

April 5, 2017, in Scottsdale, AZ, April 

13, 2017, in San Diego, CA, April 20, 

2017, in Billings, MT, May 4, 2017, in 

Biloxi, MS, and on May 25, 2017, in 

Portland, OR, the NIGC consulted with 

tribes on the proposed change to the fee 

regulations. In addition, the 

Commission issued a discussion draft 

on January 30, 2017, and solicited 

written comments through July 1, 2017. 

Comments received were generally 

supportive of the proposed change to 

the fee regulations. The Commission 

developed the proposed rule after 

carefully considering the comments 

received. 

A. Assessed Fiscal Year 

The current regulation provides that 

the annual fee shall be computed using 

‘‘the most recent rates of fees adopted by 

the Commission’’ and ‘‘the assessable 

gross revenues for the previous fiscal 

year.’’ As a result, the fee rate applied 

to a gaming operation’s fiscal year 

changes depending on when the gaming 

operation’s fiscal year ends. For 

example, if the Commission adopts a fee 

rate on November 1, 2014 (Rate A), a 

different fee rate on November 1, 2015 

(Rate B), and the gaming operation’s 

fiscal year ends on December 31, the 

gaming operations quarterly payments 

would be calculated as follows: (1) First 

quarter, payable March 31, 2015, would 

apply Rate A to the fiscal year ending 

December 31, 2014, (2) Second quarter, 

payable June 30, 2015, would apply 

Rate A to the fiscal year ending 

December 31, 2014, (3) Third quarter, 

payable September 30, 2015, would 

apply Rate A to the fiscal year ending 

December 31, 2014, and (4) Fourth 

quarter, payable December 31, 2015, 

would apply Rate B to the fiscal year 

ending December 31, 2014. 

The Commission intends for the 

annual rate to be applied consistently to 

a gaming operation’s assessable gross 

revenue for one fiscal year. The 

proposed rule therefore includes 

amendments intended to better describe 

the intended fee calculation. These 

amendments include defining ‘‘assessed 

fiscal year.’’ Under the proposed rule, 

the annual fee shall be computed using 

the ‘‘most recent rates of fees adopted by 

the Commission’’ and ‘‘the assessable 

gross revenues for the gaming 

operation’s assessed fiscal year.’’ 

Assessed fiscal year means the most 

recent fiscal year ending prior to 

January 1 of the year the Commission 

adopted fee rates. For example, if the 

Commission adopted fee rates on 

November 1, 2018, the assessed fiscal 

year would be a gaming operation’s 

fiscal year ending prior to January 1, 

2018. For gaming operations with fiscal 

years ending December 31, the assessed 

fiscal year would be the fiscal year 

ending December 31, 2017. For gaming 

operations with fiscal years ending 

September 30, the assessed fiscal year 

would be the fiscal year ending 

September 30, 2017. For gaming 

operations with fiscal years ending June 

30, the assessed fiscal year would be the 

fiscal year ending June 30, 2017. 

As a result, under the proposed rule, 

if the Commission adopts a fee rate on 

November 1, 2014 (Rate A), a different 

fee rate on November 1, 2015 (Rate B), 

and the gaming operation’s fiscal year 

ends on December 31, the gaming 

operation’s quarterly payments would 

be calculated as follows: (1) First quarter 

(of the gaming operation’s fiscal year), 

payable March 31, 2015, would apply 

Rate A to the fiscal year ending 

December 31, 2013, (2) Second quarter, 

payable June 30, 2015, would apply 

Rate A to the fiscal year ending 

December 31, 2013, (3) Third quarter, 

payable September 30, 2015, would 

apply Rate A to the fiscal year ending 

December 31, 2013, and (4) Fourth 

quarter, payable December 31, 2015, 

would apply Rate B to the fiscal year 

ending December 31, 2014. To continue 

the example, the subsequent quarterly 

payment, payable March 31, 2016, 

would apply Rate B to the fiscal year 

ending December 31, 2014. 

As an additional example, under the 

proposed rule, if the Commission adopts 

a fee rate on November 1, 2014 (Rate A), 

a different fee rate on November 1, 2015 

(Rate B), and the gaming operation’s 

fiscal year ends on September 30, the 

gaming operation’s quarterly payments 

would be calculated as follows: (1) First 

quarter (of the gaming operation’s fiscal 

year), payable December 31, 2015, 

would apply Rate A to the fiscal year 

ending September 30, 2013, (2) Second 

quarter payable March 31, 2016, would 

apply Rate A to the fiscal year ending 

September 30, 2013, (3) Third quarter 

payable June 30, 2016, would apply 


asabaliauskas on DSKBBXCHB2PROD with PROPOSALS
Federal Register / Vol. 82, No. 217 / Monday, November 13, 2017 / Proposed Rules 52255 

Rate A to the fiscal year ending 

September 30, 2013, (4) Fourth quarter, 

payable September 30, 2016, would 

apply Rate A to the fiscal year ending 

September 30, 2013. To continue the 

example, the subsequent first quarter, 

payable December 31, 2016, would 

apply Rate B to the fiscal year ending 

September 30, 2014. 

B. Fees and Statements Required if a 

Gaming Operation Ceases Operations 

In the course of developing the 

proposed rule, the Commission became 

aware that the current regulations do 

not describe the fees and statements 

required of gaming operations that cease 

operations. Section 514.7(b) of the 

proposed rule now provides that the 

gaming operation prepares and submits 

to the Commission the fees and 

statements required for the period from 

the end of the most recent quarter for 

which fees have been paid through the 

date the gaming operation ceased 

operations. For example, if a gaming 

operation with a September 30 fiscal 

year end ceases operations on July 31, 

2017, the gaming operation will have 

submitted fees and statements through 

June 30, 2017. The gaming operation 

would therefore still owe a payment for 

the period from July 1, 2017, through 

July 31, 2017. 

C. Transition Period 

Comment: Some commenters 

recommended that the Commission take 

into account the transition period 

between the current regulation and the 

final rule, if adopted. 

Response: The Commission agrees 

and will issue guidance to describe how 

gaming operations should calculate fee 

payments during the transition period. 

The Commission intends for the most 

recently announced fee rate to carry 

over until a new fee rate is announced 

once a final rule is promulgated. 

D. Payment Adjustments 

Comment: Some commenters 

recommended that the proposed rule 

make clear the gaming operation’s 

obligations regarding underpayment or 

overpayment of the annual fee. 

Response: The Commission agrees 

that payment adjustments are warranted 

when the gaming operation becomes 

aware that prior submissions over or 

underpaid the required fee amount. 

Section 514.6(d)(5) of the proposed rule 

provides that the amount to be remitted 

be adjusted for prior amounts paid and 

credits received, if applicable. The 

Commission notes, however, that 

pursuant to section 571.13 copies of 

financial statements and audits are 

required to have been provided to the 

Commission within 120 days after the 

end of the gaming operation’s fiscal 

year. Therefore, under the proposed 

rule, audited financial statements for the 

assessed fiscal year are required to be 

complete before a fee payment 

calculated using the assessed fiscal year 

is due. The current regulation and the 

proposed rule continue, however, to 

require that the quarterly statements 

must be reconciled with a tribe’s 

audited or reviewed financial 

statements for each gaming location. 

E. Advanced Payment 

Comment: A commenter sought 

clarification as to whether the 

Commission would accept prepayments under the proposed rule. 

Response: The Commission accepts 

pre-payments under the current 

regulations and will continue to do so 

under the proposed rule. Section 

514.5(a) of the proposed rule provides 

that the annual fee payable to the 

Commission optionally may be paid in 

full in the first quarterly payment. 

F. Other Comments 

Comment: A commenter asked 

whether the NIGC would issue late 

payment fees instead of issuing a notice 

of violation when payments are 

submitted late. 

Response: The Commission notes that 

the current regulation provides for late 

fees for payments submitted between 

one and ninety calendar days late. 

Statements and/or fee payments over 

ninety calendar days late constitute a 

failure to pay and may result in 

enforcement action. The proposed rule 

does not substantively amend the late 

fee or failure to pay provisions of the 

current regulation. 

Comment: A commenter asked 

whether the Commission would amend 

the definition of assessable gross 

revenue to be consistent with standards 

set by professional accounting 

organizations. 

Response: The Commission 

acknowledges that professional 

accounting definitions of gross revenue 

differ from the Commission’s definition 

of assessable gross revenue. While the 

Commission’s definition of assessable 

gross revenue must remain consistent 

with the definition for gross revenues 

contained in IGRA at 25 U.S.C. 

2717(a)(6), the proposed rule includes 

one change intended to conform the 

Commission’s definition of assessable 

gross revenue with appropriate 

accounting terminology. The proposed 

rule removes the word ‘‘amortization’’ 

from within the phrase ‘‘allowance for 

amortization of capital expenditures for 

structures’’ found in section 514.4(c) 

and 25 U.S.C. 2717(a)(6). The 

Commission understands that the term 

depreciation rather than amortization is 

appropriate for an allowance for capital 

expenditures for structures. The 

methods for determining the amount of 

the allowance provided for in section 

514.4(e) remains unchanged. 

Comment: A commenter asked 

whether the proposed rule would 

reduce fees for processing fingerprint 

cards. 

Response: The proposed rule does not 

affect how the fees for processing 

fingerprint cards are determined. As 

provided by the current regulation and 

proposed rule, the fingerprint 

processing fee is based on the fees 

charged by the Federal Bureau of 

Investigation and the costs incurred by 

the Commission. 

Regulatory Matters 

Tribal Consultation 

The National Indian Gaming 

Commission is committed to fulfilling 

its tribal consultation obligations— 

whether directed by statute or 

administrative action such as Executive 

Order (E.O.) 13175 (Consultation and 

Coordination with Indian Tribal 

Governments)—by adhering to the 

consultation framework described in its 

Consultation Policy published July 15, 

2013. The NIGC’s consultation policy 

specifies that it will consult with tribes 

on Commission Action with Tribal 

Implications, which is defined as: Any 

Commission regulation, rulemaking, 

policy, guidance, legislative proposal, or 

operational activity that may have a 

substantial direct effect on an Indian 

tribe on matters including, but not 

limited to the ability of an Indian tribe 

to regulate its Indian gaming; an Indian 

Tribe’s formal relationship with the 

Commission; or the consideration of the 

Commission’s trust responsibilities to 

Indian tribes. As discussed above, the 

NIGC engaged in extensive consultation 

on this topic and received and 

considered comments in developing this 

proposed rule. 

Regulatory Flexibility Act 

The proposed rule will not have a 

significant impact on a substantial 

number of small entities as defined 

under the Regulatory Flexibility Act, 5 

U.S.C. 601, et seq. Moreover, Indian 

Tribes are not considered to be small 

entities for the purposes of the 

Regulatory Flexibility Act. 

Small Business Regulatory Enforcement 

Fairness Act 

The proposed rule is not a major rule 

under 5 U.S.C. 804(2), the Small 


asabaliauskas on DSKBBXCHB2PROD with PROPOSALS
52256 Federal Register / Vol. 82, No. 217 / Monday, November 13, 2017 / Proposed Rules 

Business Regulatory Enforcement 

Fairness Act. The rule does not have an 

effect on the economy of $100 million 

or more. The rule will not cause a major 

increase in costs or prices for 

consumers, individual industries, 

Federal, State, local government 

agencies or geographic regions. Nor will 

the proposed rule have a significant 

adverse effect on competition, 

employment, investment, productivity, 

innovation, or the ability of the 

enterprises, to compete with foreign 

based enterprises. 

Unfunded Mandate Reform Act 

The Commission, as an independent 

regulatory agency, is exempt from 

compliance with the Unfunded 

Mandates Reform Act, 2 U.S.C. 1502(1); 

2 U.S.C. 658(1). 

Takings 

In accordance with Executive Order 

12630, the Commission has determined 

that the proposed rule does not have 

significant takings implications. A 

takings implication assessment is not 

required. 

Civil Justice Reform 

In accordance with Executive Order 

12988, the Commission has determined 

that the proposed rule does not unduly 

burden the judicial system and meets 

the requirements of section 3(a) and 

3(b)(2) of the Order. 

National Environmental Policy Act 

The Commission has determined that 

the proposed rule does not constitute a 

major federal action significantly 

affecting the quality of the human 

environment and that no detailed 

statement is required pursuant to the 

National Environmental Policy Act of 

1969, 42 U.S.C. 4321, et seq. 

Paperwork Reduction Act 

The information collection 

requirements contained in this rule 

were previously approved by the Office 

of Management and Budget (OMB) as 

required by 44 U.S.C. 3501 et seq. and 

assigned OMB Control Number 3141– 

0007, which expired in August of 2011. 

The NIGC is in the process of reinstating 

that Control Number. 

List of Subjects in 25 CFR Part 514 

Gambling, Indian—lands, Indian— 

tribal government, Reporting and 

recordkeeping requirements. 

Therefore, for reasons stated in the 

preamble, the National Indian Gaming 

Commission proposes to revise 25 CFR 

part 514 to read as follows: 

PART 514—FEES 

Sec. 

514.1 What is the purpose of this part? 

514.2 When will the annual rates of fees be 

published? 

514.3 What is the maximum fee rate? 

514.4 How does a gaming operation 

calculate the amount of the annual fee it 

owes? 

514.5 When must a gaming operation pay 

its annual fees? 

514.6 What are the quarterly statements that 

must be submitted with the fee 

payments? 

514.7 What should a gaming operation do if 

it changes its fiscal year or ceases 

operations? 

514.8 Where should fees, quarterly 

statements, and other communications 

about fees be sent? 

514.9 What happens if a gaming operation 

submits its fee payment or quarterly 

statement late? 

514.10 When does a late payment or 

quarterly statement submission become a 

failure to pay? 

514.11 Can a proposed late fee be appealed? 

514.12 When does a notice of late 

submission and/or a proposed late fee 

become a final order of the Commission 

and final agency action? 

514.13 How are late submission fees paid, 

and can interest be assessed? 

514.14 What happens if the fees imposed 

exceed the statutory maximum or if the 

Commission does not expend the full 

amount of fees collected in a fiscal year? 

514.15 May tribes submit fingerprint cards 

to the NIGC for processing? 

514.16 How does the Commission adopt the 

fingerprint processing fee? 

514.17 How are fingerprint processing fees 

collected by the Commission? 

Authority: 25 U.S.C. 2706, 2710, 2717, 

2717a. 

§ 514.1 What is the purpose of this part? 

Each gaming operation under the 

jurisdiction of the Commission, 

including a gaming operation operated 

by a tribe with a certificate of selfregulation, shall pay to the Commission 

annual fees as established by the 

Commission. The Commission, by a 

vote of not less than two of its members, 

shall adopt the rates of fees to be paid. 

§ 514.2 When will the annual rates of fees 

be published? 

(a) The Commission shall adopt the 

rates of fees no later than November 1st 

of each year. 

(b) The Commission shall publish the 

rates of fees in a notice in the Federal 

Register. 

§ 514.3 What is the maximum fee rate? 

(a) The rates of fees imposed shall 

be— 

(1) No more than 2.5% of the first 

$1,500,000 of the assessable gross 

revenues from each gaming operation, 

and 

(2) No more than 5% of amounts in 

excess of the first $1,500,000 of the 

assessable gross revenues from each 

gaming operation. 

(b) If a tribe has a certificate of selfregulation, the rate of fees imposed on 

assessable gross revenues from the class 

II gaming activity shall be no more than 

0.25%. 

(c) The total amount of all fees 

imposed on assessable gross revenues 

during any fiscal year shall not exceed 

0.08% of the assessable gross gaming 

revenues of all gaming operations. 

§ 514.4 How does a gaming operation 

calculate the amount of the annual fee it 

owes? 

(a) The amount of annual fees owed 

shall be computed using: 

(1) The most recent rates of fees 

adopted by the Commission, and 

(2) The assessable gross revenues for 

the gaming operation’s assessed fiscal 

year. 

(b) Assessed fiscal year means the 

gaming operation’s fiscal year ending 

prior to January 1 of the year the 

Commission adopted fee rates. 

(c) For purposes of computing fees, 

assessable gross revenues for each 

gaming operation are the total amount of 

money wagered on class II and III 

games, plus entry fees (including table 

or card fees), less any amounts paid out 

as prizes or paid for prizes awarded, and 

less an allowance for capital 

expenditures for structures as reflected 

in the gaming operation’s audited 

financial statements. 

(d) Assessable gross revenue tiers. 

Tier 1 assessable gross revenues are the 

first $1,500,000 of the assessable gross 

revenues from each gaming operation. 

Tier 2 assessable gross revenues are the 

amounts in excess of the first $1,500,000 

of the assessable gross revenues from 

each gaming operation. 

(e) The allowance for capital 

expenditures for structures shall be 

either: 

(1) An amount not to exceed 5% of 

the cost of structures in use throughout 

the assessed fiscal year and 2.5% of the 

cost of structures in use during only a 

part of the assessed fiscal year; or 

(2) An amount not to exceed 10% of 

the total amount of depreciation 

expenses for the assessed fiscal year. 

(f) Unless otherwise provided by 

regulation, generally accepted 

accounting principles shall be used. 

§ 514.5 When must a gaming operation 

pay its annual fees? 

(a) Annual fees are payable to the 

Commission on a quarterly basis. The 

annual fee payable to the Commission 

optionally may be paid in full in the 

first quarterly payment. 


asabaliauskas on DSKBBXCHB2PROD with PROPOSALS
Federal Register / Vol. 82, No. 217 / Monday, November 13, 2017 / Proposed Rules 52257 

(b) Each gaming operation shall 

calculate the amount of fees to be paid, 

if any, and remit them with the 

quarterly statement required in § 514.6 

within three (3) months, six (6) months, 

nine (9) months, and twelve (12) months 

of the end of the gaming operation’s 

fiscal year. 

§ 514.6 What are the quarterly statements 

that must be submitted with the fee 

payments? 

(a) Each gaming operation shall file 

with the Commission quarterly 

statements showing its assessable gross 

revenues for the assessed fiscal year. 

(b) These statements shall show the 

amounts derived from each type of 

game, the amounts deducted for prizes, 

and the amounts deducted for the 

allowance for capital expenditures for 

structures. 

(c) The quarterly statements shall 

identify an individual or individuals to 

be contacted should the Commission 

need to communicate further with the 

gaming operation. A telephone number 

and email address for each individual 

identified shall be included. 

(d) Each quarterly statement shall 

include the computation of the fees 

payable, showing all amounts used in 

the calculations. The required 

calculations are as follows: 

(1) Multiply the Tier 1 assessable 

gross revenues by the rate for those 

revenues adopted by the Commission. 

(2) Multiply the Tier 2 assessable 

gross revenues by the rate for those 

revenues adopted by the Commission. 

(3) Add (total) the results (products) 

obtained in paragraphs (d)(1) and (2) of 

this section. 

(4) Multiply the total obtained in 

paragraph (d)(3) of this section by 1⁄4. 

(5) Adjust for prior amounts paid and 

credits received, if applicable. The 

gaming operation shall provide a 

detailed justification for the adjustment. 

(6) The amount computed in 

paragraph (d)(5) of this section is the 

amount to be remitted. 

(e) As required by part 571 of this 

chapter, quarterly statements must be 

reconciled with a tribe’s audited or 

reviewed financial statements for each 

gaming location. These reconciliations 

must be made available upon the 

request of any authorized representative 

of the NIGC. 

§ 514.7 What should a gaming operation 

do if it changes its fiscal year or ceases 

operations? 

(a) If a gaming operation changes its 

fiscal year, it shall notify the 

Commission of the change within thirty 

(30) days. The Commission may request 

that the gaming operation prepare and 

submit to the Commission the fees and 

statements required by this subsection 

for the stub period from the end of the 

previous fiscal year to the beginning of 

the new fiscal year. The submission 

must be sent to the Commission within 

ninety (90) days of its request. 

(b) If a gaming operation ceases 

operations, it shall notify the 

Commission within (30) days. The 

Commission may request that the 

gaming operation, using the most recent 

rates of fees adopted by the 

Commission, prepare and submit to the 

Commission fees and statements for the 

period from the end of the most recent 

quarter for which fees have been paid to 

the date operations ceased. The 

submission must be sent to the 

Commission within (90) days of its 

request. 

§ 514.8 Where should fees, quarterly 

statements, and other communications 

about fees be sent? 

Remittances, quarterly statements, 

and other communications about fees 

shall be sent to the Commission by the 

methods provided for in the rates of fees 

notice published in the Federal 

Register. 

§ 514.9 What happens if a gaming 

operation submits its fee payment or 

quarterly statement late? 

(a) In the event that a gaming 

operation fails to submit a fee payment 

or quarterly statement in a timely 

manner, the Chair of the Commission 

may issue a notice specifying: 

(1) The date the statement and/or 

payment was due; 

(2) The number of calendar days late 

the statement and/or payment was 

submitted; 

(3) A citation to the federal or tribal 

requirement that has been or is being 

violated; 

(4) The action being considered by the 

Chair; and 

(5) Notice of rights of appeal pursuant 

to subchapter H of this chapter. 

(b) Within fifteen (15) days of service 

of the notice, the recipient may submit 

written information about the notice to 

the Chair. The Chair shall consider any 

information submitted by the recipient 

as well as the recipient’s history of 

untimely submissions or failure to file 

statements and/or fee payments over the 

preceding five (5) years in determining 

the amount of the late fee, if any. 

(c) When practicable, within thirty 

(30) days of issuing the notice described 

in paragraph (a) of this section to a 

recipient, the Chair of the Commission 

may assess a proposed late fee against 

a recipient for each failure to file a 

timely quarterly statement and/or fee 

payment: 

(1) For statements and/or fee 

payments one (1) to thirty (30) calendar 

days late, the Chair may propose a late 

fee of up to, but not more than 10% of 

the fee amount for that quarter; 

(2) For statements and/or fee 

payments thirty-one (31) to sixty (60) 

calendar days late, the Chair may 

propose a late fee of up to, but not more 

than 15% of the fee amount for that 

quarter; 

(3) For statements and/or fee 

payments sixty-one (61) to ninety (90) 

calendar days late, the Chair may 

propose a late fee of up to, but not more 

than 20% of the fee amount for that 

quarter. 

§ 514.10 When does a late payment or 

quarterly statement submission become a 

failure to pay? 

Statements and/or fee payments over 

ninety (90) calendar days late constitute 

a failure to pay the annual fee, as set 

forth in IGRA, 25 U.S.C. 2717(a)(4), and 

NIGC regulations, 25 CFR 573.4(a)(2). In 

accordance with 25 U.S.C. 2717(a)(4), 

failure to pay fees shall be grounds for 

revocation of the approval of the Chair 

of any license, ordinance or resolution 

required under IGRA for the operation 

of gaming. In accordance with 

§ 573.4(a)(2) of this chapter, if a tribe, 

management contractor, or individually 

owned gaming operation fails to pay the 

annual fee, the Chair may issue a notice 

of violation and, simultaneously with or 

subsequently to the notice of violation, 

a temporary closure order. 

§ 514.11 Can a proposed late fee be 

appealed? 

(a) Proposed late fees assessed by the 

Chair may be appealed under 

subchapter H of this chapter. 

(b) At any time prior to the filing of 

a notice of appeal under subchapter H 

of this chapter, the Chair and the 

recipient may agree to settle the notice 

of late submission, including the 

amount of the proposed late fee. In the 

event a settlement is reached, a 

settlement agreement shall be prepared 

and executed by the Chair and the 

recipient. If a settlement agreement is 

executed, the recipient shall be deemed 

to have waived all rights to further 

review of the notice or late fee in 

question, except as otherwise provided 

expressly in the settlement agreement. 

In the absence of a settlement of the 

issues under this paragraph, the 

recipient may contest the proposed late 

fee before the Commission in 

accordance with subchapter H of this 

chapter. 


asabaliauskas on DSKBBXCHB2PROD with PROPOSALS
52258 Federal Register / Vol. 82, No. 217 / Monday, November 13, 2017 / Proposed Rules 

1 82 FR 47415 (Oct. 12, 2017). 

2 81 FR 86643 (Dec. 1, 2016). 

§ 514.12 When does a notice of late 

submission and/or a proposed late fee 

become a final order of the Commission 

and final agency action? 

If the recipient fails to appeal under 

subchapter H of this chapter, the notice 

and the proposed late fee shall become 

a final order of the Commission and 

final agency action. 

§ 514.13 How are late submission fees 

paid, and can interest be assessed? 

(a) Late fees assessed under this part 

shall be paid by the person or entity 

assessed and shall not be treated as an 

operating expense of the operation. 

(b) The Commission shall transfer the 

late fee paid under this subchapter to 

the U.S. Treasury. 

(c) Interest shall be assessed at rates 

established from time to time by the 

Secretary of the Treasury on amounts 

remaining unpaid after their due date. 

§ 514.14 What happens if the fees imposed 

exceed the statutory maximum or if the 

Commission does not expend the full 

amount of fees collected in a fiscal year? 

(a) The total amount of all fees 

imposed during any fiscal year shall not 

exceed the statutory maximum imposed 

by Congress. The Commission shall 

credit pro-rata any fees collected in 

excess of this amount against amounts 

otherwise due. 

(b) To the extent that revenue derived 

from fees imposed under the schedule 

established under this paragraph are not 

expended or committed at the close of 

any fiscal year, such funds shall remain 

available until expended to defray the 

costs of operations of the Commission. 

§ 514.15 May tribes submit fingerprint 

cards to the NIGC for processing? 

Tribes may submit fingerprint cards to 

the Commission for processing by the 

Federal Bureau of Investigation and the 

Commission may charge a fee to process 

fingerprint cards on behalf of the tribes. 

§ 514.16 How does the Commission adopt 

the fingerprint processing fee? 

(a) The Commission shall review 

annually the costs involved in 

processing fingerprint cards and, by a 

vote of not less than two of its members, 

shall adopt the fingerprint processing 

fee no later than November 1st of each 

year. 

(b) The Commission shall publish the 

fingerprint processing fee in a notice in 

the Federal Register. 

(c) The fingerprint processing fee 

shall be based on fees charged by the 

Federal Bureau of Investigation and 

costs incurred by the Commission. 

Commission costs include Commission 

personnel, supplies, equipment costs, 

and postage to submit the results to the 

requesting tribe. 

§ 514.17 How are fingerprint processing 

fees collected by the Commission? 

(a) Fees for processing fingerprint 

cards will be billed monthly to each 

Tribe for cards processed during the 

prior month. Tribes shall pay the 

amount billed within forty-five (45) 

days of the date of the bill. 

(b) The Chair may suspend fingerprint 

card processing for a tribe that has a bill 

remaining unpaid for more than fortyfive (45) days. 

(c) Remittances and other 

communications about fingerprint 

processing fees shall be sent to the 

Commission by the methods provided 

for in the rates of fees notice published 

in the Federal Register. 

Dated: November 2, 2017. 

Jonodev O. Chaudhuri, 

Chairman. 

Kathryn Isom-Clause, 

Vice Chair. 

E. Sequoyah Simermeyer, 

Associate Commissioner. 

[FR Doc. 2017–24363 Filed 11–9–17; 8:45 am] 

BILLING CODE 7565–01–P 

LIBRARY OF CONGRESS 

Copyright Office 

37 CFR Parts 201 and 202 

[Docket No. 2017–15] 

Group Registration of Unpublished 

Works: Extension of Comment Period 

AGENCY: U.S. Copyright Office, Library 

of Congress. 

ACTION: Notice of proposed rulemaking; 

extension of comment period. 

SUMMARY: The U.S. Copyright Office is 

extending the deadlines for the 

submission of written comments in 

response to its October 12, 2017 notice 

of proposed rulemaking, regarding the 

creation of a new group registration 

option for unpublished works to replace 

the existing ‘‘unpublished collections’’ 

registration option. In this document, 

the Office also clarifies that the new 

group registration option is not intended 

for group registration of unpublished 

photographs; that is the subject of a 

separate proposed rulemaking, which 

would permit submission of up to 750 

photographs on one application. 

DATES: The comment period for the 

notice of proposed rulemaking 

published on October 12, 2017 (82 FR 

47415), is extended. Comments must be 

made in writing and must be received 

in the U.S. Copyright Office no later 

than November 17, 2017. 

ADDRESSES: For reasons of government 

efficiency, the Copyright Office is using 

the regulations.gov system for the 

submission and posting of public 

comments in this proceeding. All 

comments are therefore to be submitted 

electronically through regulations.gov. 

Specific instructions for submitting 

comments are available on the 

Copyright Office Web site at https://

www.copyright.gov/rulemaking/ 

groupunpublished/. If electronic 

submission of comments is not feasible 

due to lack of access to a computer and/ 

or the Internet, please contact the Office 

for special instructions using the contact 

information below. 

FOR FURTHER INFORMATION CONTACT: 

Robert J. Kasunic, Associate Register of 

Copyrights and Director of Registration 

Policy and Practice; Erik Bertin, Deputy 

Director of Registration Policy and 

Practice; or Regan A. Smith, Deputy 

General Counsel, by telephone at 202– 

707–8040 or by email at rkas@loc.gov, 

ebertin@loc.gov, and resm@loc.gov. 

SUPPLEMENTARY INFORMATION: As 

detailed in an October 12, 2017 notice 

of proposed rulemaking (‘‘NPRM’’),1 the 

U.S. Copyright Office is proposing to 

create a new group registration option 

for a limited number of unpublished 

works (‘‘GRUW’’). Under that proposal, 

applicants will be allowed to include up 

to five works in each submission. This 

new group registration option will 

replace the current ‘‘unpublished 

collections’’ option. 

After publication of the NPRM, there 

was some understandable confusion 

about the scope of the NPRM among the 

photographer community, who feared 

that the GRUW option would limit them 

to submitting five unpublished 

photographs per application. To clarify, 

the Office does not intend to impose 

such a limit on photographers. On 

December 1, 2016, the Office issued a 

separate notice of proposed rulemaking 

amending the existing option for group 

registration of photographs that would 

create an electronic application for 

group registration for published 

photographs, and also create an 

analogous application for group 

registration for unpublished 

photographs.2 Under that separate 

proposed rule, photographers would be 

permitted to include up to 750 

photographs on each such application, 

rather than the five works proposed 

under the new GRUW option. See 

generally 81 FR at 86649. The Office is 

working on the group registration of 

photographs final rule in conjunction 


asabaliauskas on DSKBBXCHB2PROD with PROPOSALS