Proposed Rule2021-25844
Background Investigations for Persons or Entities With a Financial Interest in or Having a Management Responsibility for a Management Contract
Primary source
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Published
December 2, 2021
Issuing agencies
Interior DepartmentNational Indian Gaming Commission
Abstract
The National Indian Gaming Commission proposes to amend its procedures for processing a request for approval of a management contract under the Indian Gaming Regulatory Act. The proposed amendments make the following changes to the current regulations. The regulations will now require a background investigation of all persons who have 10 percent or more direct or indirect financial interest in a management contract. The regulations will also require a background investigation of all entities with 10 percent or more financial interest in a management contract. The regulations now require a background investigation of any other person or entity with a direct or indirect financial interest in a management contract otherwise designated by the Commission. The regulations authorize the Chair, either by request or unilaterally, to exercise discretion to reduce the scope of the information to be furnished and background investigation to be conducted for certain entities.
Full Text
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<title>Federal Register, Volume 86 Issue 229 (Thursday, December 2, 2021)</title>
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[Federal Register Volume 86, Number 229 (Thursday, December 2, 2021)]
[Proposed Rules]
[Pages 68446-68447]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2021-25844]
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DEPARTMENT OF THE INTERIOR
National Indian Gaming Commission
25 CFR Part 537
RIN 3141-AA58
Background Investigations for Persons or Entities With a
Financial Interest in or Having a Management Responsibility for a
Management Contract
AGENCY: National Indian Gaming Commission, Department of the Interior.
ACTION: Notice of proposed rulemaking.
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SUMMARY: The National Indian Gaming Commission proposes to amend its
procedures for processing a request for approval of a management
contract under the Indian Gaming Regulatory Act. The proposed
amendments make the following changes to the current regulations. The
regulations will now require a background investigation of all persons
who have 10 percent or more direct or indirect financial interest in a
management contract. The regulations will also require a background
investigation of all entities with 10 percent or more financial
interest in a management contract. The regulations now require a
background investigation of any other person or entity with a direct or
indirect financial interest in a management contract otherwise
designated by the Commission. The regulations authorize the Chair,
either by request or unilaterally, to exercise discretion to reduce the
scope of the information to be furnished and background investigation
to be conducted for certain entities.
DATES: Written comments on this proposed rule must be received on or
before January 3, 2022.
ADDRESSES: You may submit comments by any one of the following methods,
however, please note that comments sent by electronic mail are strongly
encouraged.
[ssquf] Federal eRulemaking Portal: Go to <a href="https://www.regulations.gov">https://www.regulations.gov</a>. Follow the instructions for submitting comments.
[ssquf] Email comments to: <a href="/cdn-cgi/l/email-protection#9cf5f2faf3eef1fde8f5f3f2dcf2f5fbffb2fbf3ea"><span class="__cf_email__" data-cfemail="71181f171e031c1005181e1f311f1816125f161e07">[email protected]</span></a>.
[ssquf] Mail comments to: National Indian Gaming Commission, 1849 C
Street NW, MS 1621, Washington, DC 20240.
[ssquf] Fax comments to: National Indian Gaming Commission at 202-
632-0045.
FOR FURTHER INFORMATION CONTACT: Heather McMillan Nakai at (202) 632-
7003 or by fax (202) 632-7066 (these numbers are not toll free).
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 established the National Indian Gaming Commission (``NIGC'' or
``Commission'') and set out a comprehensive framework for the
regulation of gaming on Indian lands. On January 22, 1993, the NIGC
published a final rule in the Federal Register called Background
Investigations for Person or Entities with a Financial Interest in a
Management Contract, 58 FR 5831. The rule added a new part to the
Commission's regulations implementing the mandates of the Indian Gaming
Regulatory Act of 1988 by establish the requirements and procedures for
the approval of management contracts concerning Indian gaming
operations and the conduct of related background investigations. The
Commission has substantively amended them numerous times, most recently
in 2012 (77 FR 47516).
III. Development of the Rule
On, June 9, 20201, the National Indian Gaming Commission sent a
Notice of Consultation announcing that the Agency intended to consult
on a number of topics, including proposed changes to the management
contract process. Prior to consultation, the Commission released
proposed discussion drafts of the regulations for review. The proposed
amendment to the management contract regulations were intended to
improve the Agency's efficiency in processing management agreements and
background investigations, clarify existing regulations, and provide
guidance on extending management contracts. The Commission held two
virtual
[[Page 68447]]
consultation sessions in July of 2021 to receive tribal input on the
possible changes.
The Commission reviewed all comments and now proposes these changes
which it believes will improve the Agency's efficiency in processing
background investigations.
IV. Regulatory Matters
Regulatory Flexibility Act
The rulemaking 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 Business Regulatory Enforcement Fairness Act. The rulemaking does
not have an effect on the economy of $100 million or more. The proposed
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 sections 3(a) and 3(b)(2) of the
order.
National Environmental Policy Act
The Commission has determined that the rulemaking 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 as required
by 44 U.S.C. 3501, et seq., and assigned Office of Management and
Budget (OMB) Control Number 3141-0004.
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.
Pursuant to this policy, on June 9, 20201, the National Indian
Gaming Commission sent a Notice of Consultation announcing that the
Agency intended to consult on a number of topics, including proposed
changes to the management contract process.
List of Subjects in 25 CFR Part 537
Administrative practice and procedure, Gambling, Indians--business
and finance, Indian--Indian lands, Indians--tribal government.
For the reasons discussed in the Preamble, the Commission proposes
to amend its regulations at 25 CFR part 537 as follows:
PART 537--BACKGROUND INVESTIGATIONS FOR PERSONS OR ENTITIES WITH A
FINANCIAL INTEREST IN, OR HAVING MANAGEMENT RESPONSIBILITY FOR, A
MANAGEMENT CONTRACT
0
1. The authority citation for part 537 continues to read as follows:
Authority: 25 U.S.C. 81, 2706(b)(10), 2710(d)(9), 2711.
0
2. Amend Sec. 537.1 by revising paragraphs (a)(3) through (5) and
adding paragraph (d) to read as follows:
Sec. 537.1 Applications for approval.
(a) * * *
(3) All persons who have 10 percent or more direct or indirect
financial interest in a management contract;
(4) All entities with 10 percent or more financial interest in a
management contract; and
(5) Any other person or entity with a direct or indirect financial
interest in a management contract otherwise designated by the
Commission.
* * * * *
(d) For any of the following entities, or individuals associated
with the following entities, the Chair may, upon request or
unilaterally, exercise discretion to reduce the scope of the
information to be furnished and background investigation to be
conducted:
(1) Tribe as defined at 25 CFR 502.13;
(2) Wholly owned tribal entity;
(3) National bank; or
(4) Institutional investor that is federally regulated or is
required to undergo a background investigation and licensure by a state
or tribe pursuant to a tribal-state compact.
Dated: November 18, 2021, Washington, DC.
E. Sequoyah Simermeyer,
Chairman.
[FR Doc. 2021-25844 Filed 12-1-21; 8:45 am]
BILLING CODE 7565-01-P
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