Tonto Apache Tribe of Arizona Liquor Control Code

Issuing agencies

Abstract

This notice publishes the Tonto Apache Tribe of Arizona Liquor Control Code, which repeals and replaces the previous liquor code published on January 14, 1986.

Full Text

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<title>Federal Register, Volume 91 Issue 162 (Monday, August 24, 2026)</title>
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[Federal Register Volume 91, Number 162 (Monday, August 24, 2026)]
[Notices]
[Pages 54734-54739]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2026-17235]


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DEPARTMENT OF THE INTERIOR

Bureau of Indian Affairs

[267A2100DD/AAKP300000/A0A501010.000000]


Tonto Apache Tribe of Arizona Liquor Control Code

AGENCY: Bureau of Indian Affairs, Interior.

ACTION: Notice.

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SUMMARY: This notice publishes the Tonto Apache Tribe of Arizona Liquor 
Control Code, which repeals and replaces the previous liquor code 
published on January 14, 1986.

DATES: This code shall become effective August 24, 2026.

FOR FURTHER INFORMATION CONTACT: Karrie-Ann Quartz, Acting Tribal 
Government Officer, Western Regional Office, Bureau of Indian Affairs, 
2600 N. Central Avenue, 4th Floor Mailroom, Phoenix, AZ 85004, 
Telephone: (480) 744-4992 or Oliver Whaley, Director, Office of 
Regulatory Affairs, (202) 738-6065.

SUPPLEMENTARY INFORMATION: Pursuant to the Act of August 15, 1953, Pub. 
Law 83-277, 67 Stat. 586, 18 U.S.C. 1161, as interpreted by the Supreme 
Court in Rice v. Rehner, 463 U.S. 713 (1983), the Secretary of the 
Interior shall certify and publish in the Federal Register notice of 
adopted liquor ordinances for the purpose of regulating liquor 
transactions in Indian country.
    On October 19, 2023, the Tonto Apache Tribe adopted this Liquor 
Code by Resolution No. 23-34, which regulates and controls the 
possession, sale, manufacture, and distribution of alcohol in 
conformity with the laws of the State of Arizona to the extent required 
by applicable federal law, including 18 U.S.C. 1161. Enactment of this 
Code will help improve the economic viability for the Tribe, provide a 
source of revenue to strengthen Tribal government, which may be used to 
provide basic governmental functions for its members.
    This notice is published in accordance with the authority delegated 
by the Secretary of the Interior to the Assistant Secretary-Indian 
Affairs. I certify that the Tonto Apache Tribe of Arizona duly adopted 
the Tonto Apache Tribe Liquor Control Code by Resolution No. 23-34 
dated October 19, 2023.
    The Tonto Apache Tribe of Arizona Liquor Control Code shall read as 
follows:

[[Page 54735]]

Tonto Apache Tribe Liquor Control Code

    A law to authorize and regulate liquor transactions within the 
jurisdiction of the Tonto Apache Tribe.

Part 1 General Provisions

    Section #1--Authority: Enacted by the Tribal Council of the Tonto 
Apache Tribe (``Tribal Council'') on October 19th, 2023 by Resolution 
#23-34. This Code is enacted pursuant to federal statutes and other 
laws, including the Act of August 15, 1953, 67 Stat. 586, codified at 
18 U.S.C. 1161, and in conformity with applicable laws of the State of 
Arizona (``State'').
    Section #2--Purpose: The Tribal Council, as the governing body of 
the Tonto Apache Tribe (``Tribe'') hereby enacts this Code to authorize 
and regulate Liquor Transactions within the Tribal Lands.
    Section #3--Policy: The authorization and regulation of Liquor 
Transactions is necessary to encourage economic development, improve 
the Tribe's economic situation, and generate revenue for the Tribe, 
which may be used to provide basic governmental functions for its 
members.
    Section #4--Sovereign Immunity: Unless otherwise specified in this 
Code, all inherent sovereign rights of the Tribe are hereby expressly 
reserved, including sovereign immunity from suit in any state, federal 
or tribal court.
    Section #5--Jurisdiction: This Code shall apply to all members of 
the Tribe, any person engaged in Liquor Transactions within the Tribal 
Lands, and all employees of a person conducting Liquor Transactions 
within the jurisdiction of the Tribe.
    Section #6--General Prohibition: It shall be a violation of the 
laws of the Tribe for any person or entity, other than a Manufacturer, 
Retailer, or Wholesaler, to sell, store, transport, or conduct any 
Liquor Transactions except in compliance with the terms, conditions, 
limitations, and restrictions specified in this Code.
    Section #7--Tribal Control of Liquor: The Tribe has the sole and 
exclusive right to authorize a Manufacturer of Liquor, including a 
Distiller, Brewer, Winery, cidery and bottling, within or importation 
of alcoholic beverages into the Tribal Lands for Sale or for the 
purpose of conducting transactions therewith, and no person or 
organization may engage in such activities within or import any such 
alcoholic beverages into the Tribal Lands unless authorized by the 
Tribe to do so.
    Section #8--Applicability of State Law: Except as may be otherwise 
authorized by agreement between the Tribe and the State, the Tribe 
shall require compliance with the State's laws regarding the Sale of 
Liquor to the extent required by applicable federal law, including 18 
U.S.C. Section 1161.
    Section #9--Power to License and Tax: The power to establish 
licenses and levy taxes under the provisions of this Code is vested 
exclusively with the Tribe.
    Section #10--Severability: If any section of this Code is 
invalidated by a court of competent jurisdiction, the remaining 
sections shall not be affected thereby.
    Section #11--Definitions:
    ``Alcohol'' means the product of distillation of any fermented 
liquid, whether rectified or diluted, whatever the origin, and includes 
synthetic ethyl alcohol and Alcohol processed or sold in a gaseous form 
but excludes denatured alcohol or wood alcohol.
    ``Beer'' means any beverage obtained by the alcoholic fermentation 
of an infusion or decoction of pure hops, or pure extract of hops and 
pure barley malt or other wholesome grain or cereal in pure water and 
includes, but is not limited to, Beer, ale, malt liquor, stout, lager 
beer, porter, near beer, flavored malt beverage, and hard cider.
    ``Commission'' means the Tonto Apache Liquor Control Commission.
    ``Brewer'' means a Manufacturer engaged in the business of 
producing Beer.
    ``Consume'' means knowingly and intentionally drinking or otherwise 
ingesting.
    ``Distiller'' means a Manufacturer engaged in the business of 
distilling Spirits.
    ``Distribute'' means to acquire, purchase, store, introduce, 
import, export, sell, offer for Sale, deliver, transport, give away, 
offer to give away, or otherwise possess Liquor for resale or further 
processing, or otherwise introduce, import, export, sell, resell, offer 
for Sale or resale, deliver or transport.
    ``Key Participant'' means high level employees of a licensee such 
as executives and management or any person who has at least a 10% 
ownership interest in the licensee's business
    ``Liquor'' means Alcohol, Beer, Spirits, Wine, all other fermented, 
spirituous, vinous, or malt liquors, or combinations thereof and mixed 
liquor, a part of which is fermented, spiritous, vinous, malt liquor, 
or otherwise intoxicating and includes every liquid, solid, semi-solid, 
or other substance, patented or containing Alcohol, Beer, Spirits, or 
Wine and all preparations or mixtures of liquor capable of human 
consumption.
    ``Liquor Transactions'' means the conduct of a Manufacturer, 
Retailer, or Wholesaler as authorized by this Code,
    ``Manufacturer'' means any person engaged in the manufacture or 
other preparation of Liquor in any form whatsoever, including Brewers, 
Distillers, and Wineries, but does not include the mixing or other 
preparation of drinks for consumption on the premises where sold, 
sampled, or given away.
    ``Onsite Consumption'' means the Sale of Liquor for consumption 
upon the premises were sold and includes the mixing or other 
preparation of drinks for serving for consumption on the premises where 
sold.
    ``Regulator'' means the Tribal official serving on the Commission 
who is responsible for carrying out the requirements of this Code.
    ``Retailer'' means any Sale made for any purpose other than for 
resale or further processing.
    ``Sale'' means the transfer of ownership of title to, or possession 
of goods for money, other goods, services, or other valuable 
consideration, including bartering, trading, exchanging, renting, 
leasing, conditional sales, and any sale where possession of goods is 
given to the buyer, but title is retained by the seller as security for 
the payment of the purchase price.
    ``Spirits'' means any beverage which contains Alcohol obtained by 
distillation, whether mixed with water or other substance in solution, 
and includes brandy, rum, whiskey, gin, or other spiritous Liquors and 
such Liquors when rectified, blended, or otherwise mixed with Alcohol 
or other substances.
    ``Tribal Lands'' means all lands held in trust by the United States 
for the benefit of the Tribe; and all lands of the Tribe defined as 
Indian country by 18 U.S.C. 1151, including dependent Indian 
communities.
    ``Wholesaler'' means any person who Distributes or is engaged in 
the distribution of Liquor.
    ``Wine'' means any alcoholic beverage obtained by fermentation of 
fruits, vegetables, or other agricultural products containing sugar, 
including such beverages when fortified by the addition of Alcohol or 
Spirits.
    ``Winery'' means a Manufacturer engaged in the business of 
producing Wine.
    Section #12--Effective Date: This Code shall become effective upon 
the date that the Secretary of the Department of the Interior certifies 
the

[[Page 54736]]

Code and publishes it in the Federal Register.

Part 2 Tonto Apache Liquor Control Commission

    Section #1--Establishment:
    1.1 Governmental Subdivision. The Tribal Council hereby establishes 
the Tonto Apache Liquor Control Commission (``Commission'') as a 
governmental subdivision of the Tribe, charged with implementation of 
this Code and regulation over Liquor Transactions.
    1.2 Place of Business. The Commission shall maintain its 
headquarters and principal place of business within Tribal offices.
    1.3 Duration. The Commission shall have perpetual existence in its 
own name, unless dissolved by the Tribal Council.
    1.4 Arm of the Tribe. In carrying out its purposes under this Code, 
the Commission shall function as a governmental instrumentality and as 
an arm of the Tribe. Notwithstanding any authority delegated to the 
Commission under this Code, the Tribe reserves to itself the right to 
bring suit against any person or entity in its own right, on behalf of 
the Tribe or on behalf of the Commission, whenever the Tribe deems it 
necessary to protect the rights and interests of the Tribe or the 
Commission.
    1.5 Sovereign Immunity of the Commission. As a governmental 
subdivision of the Tribe, all inherent sovereign rights of the Tribe 
are hereby expressly extended to the Commission and reserved, including 
sovereign immunity from suit in any state, federal or tribal court.
    1.6 Commission Membership. The Commission is comprised of one 
Regulator and employees who assist the Regulator.
    1.7 Appointment. The Regulator must be appointed by the Tribal 
Council and confirmed at any Tribal Council meeting.
    1.8 Term. The Tribal Council may appoint any Regulator to serve up 
to three (3) years. The Regulator may be reappointed without 
limitation.
    1.9 Compensation. The Regulator will be compensated at a rate set 
by the Tribal Council. To ensure the Commission is not improperly 
influenced, the Regulator's compensation shall not be based on a 
percentage of revenue derived from the activities authorized and 
regulated under this Code.
    1.10 Qualifications. To be eligible to serve on the Commission, any 
person appointed as a Commissioner shall:
    (a) be at least twenty-one (21) years of age and show proof of High 
School Diploma or equivalent; and
    (b) not be eligible for appointment as a Regulator if:
    i. the person's prior activities, criminal record if any, credit 
history or reputation, habits, or associations:
    1. poses a threat to the public interest;
    2. threatens the effective regulation and control of the activities 
authorized and regulated under this Code or the public's confidence in 
said regulation; or
    3. enhances the dangers of unsuitable, unfair or illegal practices, 
methods, or activities in the conduct authorized and regulated by this 
Code.
    ii. been convicted of or entered a plea of no contest to any felony 
in the five (5) years prior to appointment unless pardoned and fully 
restored of his or her civil rights by the proper authorities prior to 
appointment; or
    iii. who has, or whose spouse, significant other, parent, child or 
sibling has, an ownership, partnership, or other direct monetary or 
ownership interest in the activities authorized and regulated under the 
Code.
    Section #2--Powers:
    2.1 Regulations. The Commission may recommend regulations, subject 
to Tribal Council approval:
    (a) to establish procedures designed to detect irregularities or 
fraud;
    (b) to design a regulatory system to oversee Liquor Transactions;
    (c) to collaborate and cooperate with such other agencies of the 
Tribe, other tribes, the United States, and state governments as 
necessary to implement and enforce this Code;
    (d) to establish procedures governing the conduct of inspections, 
investigations, hearings and enforcement actions; or
    (e) promulgate any other regulations to ensure compliance with this 
Code.
    2.2 Investigations. The Commission may inspect the premises where 
Liquor Transactions are taking place. In undertaking such 
investigations, the Commission may:
    (a) request assistance from federal or local law enforcement, legal 
counsel and/or other third parties, including applicable federal and 
state agencies, as necessary;
    (b) during normal business hours, may reasonably enter upon 
premises to examine accounts, books, papers and documents;
    (c) make any request or inquiry for information or documents of any 
person engaged in Liquor Transactions;
    (d) require the presence of any person and require testimony under 
oath concerning the subject matter of any inquiry of the Commission, 
and to make a permanent record of the proceeding; or
    (e) conduct any investigation to determine compliance with this 
Code.
    Section #3--Duties:
    3.1 Annual Budget. The Commission shall prepare an annual operating 
budget and present it to the Tribal Council no less than thirty (30) 
days prior to the commencement of each operating year.
    3.2 Licensing. The Commission shall:
    (a) require a license for each business or entity engaged as a 
Manufacturer, Wholesaler, or Retailer, or engaged in Onsite Consumption 
as authorized by this Code;
    (b) establish business applications, which at a minimum shall 
include:
    i. the names of all Key Participants;
    ii. list of all licenses related to Liquor Transactions for which 
applicant has ever applied to the Commission or any other tribal, 
state, federal or local government, and indication of whether such 
licenses were issued;
    iii. disclosure of any Liquor Transaction related licenses that 
have been denied or revoked;
    iv. sworn statement that applicant agrees a license is a revocable 
privilege and not a right;
    v. sworn statement that applicant acknowledges the license may not 
be sold, assigned or transferred;
    vi. sworn statement that applicant's Key Participants shall seek 
and maintain a license with the Commission;
    vii. sworn statement that applicant will submit to the jurisdiction 
of the Tribe; and
    viii. an application fee as set by the Commission.
    (c) conduct a due diligence investigation of the applicant to 
sufficiently allow the Commission to make an eligibility determination 
on whether a license should be issued, which shall be completed within 
sixty (60) days of receipt of the application or automatically be 
deemed a denial;
    (d) approve applications if Commission determines the following 
criteria is met:
    i. applicant complied with all Commission requirements; and
    ii. the Liquor Transactions applicant intends to conduct are 
authorized by this Code.
    (e) deny applications if Commission determines the applicant has 
not complied with all requirements of the laws of the Tribe, applicable 
State liquor laws, or applicable federal laws and:
    i. immediately suspend any temporary license previously issued;

[[Page 54737]]

    ii. provide written notice of ineligibility to receive a license; 
and
    iii. provide the applicant with the option to request a hearing on 
the denial, which shall follow the procedures at Part 7, Section 2.2.
    (f) for applicant's that are determined eligible for a license 
under this Section, issue a license that at a minimum shall include:
    i. licensee name;
    ii. license classification (i.e., Manufacturer, Wholesaler, 
Retailer);
    iii. location of licensed facility; iv. Tribe's logo;
    iv. issue date; and
    v. license number.
    (g). maintain records of all license applicants and licensees, 
including applications, background investigation reports, and 
eligibility determination reports for no less than five (5) years.
    3.3 Key Participant Licensing. The Commission shall:
    (a) require a license for all Key Participants of any licensee;
    (b) establish applications for Key Participants which at a minimum 
shall include:
    i. full name, other names used (oral or written), social security 
number, birth date, place of birth, and citizenship;
    ii. currently, and for the previous five (5) years, business and 
employment positions held, ownership interests in those business, 
business and residential addresses, and driver's licenses (number, date 
of issuance and expiration);
    iii. current business and residential telephone numbers, and all 
cell phone numbers, personal and business;
    iv. a description of any existing and previous business 
relationships dealing with Liquor Transactions generally, including 
ownership interest in those businesses;
    v. the name and address of any licensing or regulatory agency with 
which the person has filed an application for a license or permit 
related to Liquor Transactions, whether or not such license or permit 
was granted;
    vi. for each criminal charge, felony or misdemeanor: whether or not 
there is a conviction, if such criminal charge is within the last five 
(5) years of the date of application, a description of the criminal 
charge, the name and address of the court involved, and the date of 
disposition, if any; and
    vii. any other information the Commission deems relevant.
    (c) conduct background investigations for each Key Participant 
applicant to sufficiently allow the Commission to make an eligibility 
determination on whether a license should be issued, which background 
investigation shall be completed within sixty (60) days of receipt of 
the application or shall automatically be deemed a denial, and at a 
minimum should include an inquiry of:
    i. criminal history through background checks;
    ii. civil history; and
    iii. personal credit check.
    (d) create and maintain an investigative report for each background 
investigation of a Key Participant applicant, which at a minimum shall 
include:
    i. steps taken to investigate or verify the contents of the 
applications; and
    ii. results and conclusions.
    (e) make a determination of suitability on whether to issue a 
license. The Commission shall not issue a license if the applicant's 
prior activities, criminal record if any, credit history or reputation, 
habits, or associations:
    i. poses a threat to the public interest;
    ii. threatens the effective regulation and control of the 
activities authorized and regulated under this Code or the public's 
confidence in said regulation;
    iii. enhances the dangers of unsuitable, unfair or illegal 
practices, methods, or activities in the conduct authorized and 
regulated by this Code;
    iv. has been convicted of or plead guilty to a felony or any 
criminal offense related to Liquor in any jurisdiction other than 
driving while intoxicated or under the influence of Liquor; or
    v. has had a liquor license revoked in any jurisdiction in the 
previous two (2) years.
    (f) if the applicant is not eligible for a license, the Commission 
shall:
    i. immediately suspend any temporary license previously issued;
    ii. provide written notice of ineligibility to receive a license; 
and
    iii. provide the applicant with the option to request a hearing on 
the denial, which shall follow the procedures at Part 7, Section 2.2.
    (g) for applicant's that are determined eligible for a license 
under this Section, issue a Key Participant license that at a minimum 
shall include:
    i. Key Participant name;
    ii. Tribe's logo;
    iii. issue date; and
    iv. license number;
    (h) maintain records of all applicants and licensees, including 
applications, background investigation reports, and eligibility 
determination reports for no less than five (5) years.
    3.4 Meetings. The Regulator shall hold meetings with the Commission 
to ensure timely discharge of their duties under the Code.
    3.5 Reports to Tribal Council. The Commission shall meet with the 
Tribal Council quarterly. The Regulator shall file a quarterly report 
with the Tribal Council reporting on monthly activities of the 
Commission's oversight of persons licensed and regulated under the 
Code.
    3.6 Enforcement. The Commission shall have jurisdiction over any 
violations of this Code or violations of State liquor laws and may 
suspend or revoke licenses, and impose fines over any person, in 
accordance with the procedures at Part 7 of this Code, ensuring that 
principles of due process are adhered to in all enforcement actions and 
are consistent with applicable federal and state laws.
    3.7 Records. The Commission shall create and maintain accurate and 
complete records which contain information and documents necessary for 
the proper and efficient operation of the Commission, including, but 
not limited to:
    (a) all licenses issued and any fees received for the same;
    (b) all fees and penalties imposed, due, and collected; and
    (c) every official action taken by the Commission.
    Section #4--Prohibited Acts: The Commission may not:
    (a) waive sovereign immunity of the Commission or the Tribe without 
receiving written approval from the Tribal Council; or
    (b) make business decisions for a licensed entity under this Code.

Part 3 Manufacturer License

    Section #1--License Required: A person may not engage as a Brewer, 
Distiller, bottler, or otherwise act as a Manufacturer of Liquor unless 
they have received a license from the Commission.
    Section #2--Term: The Manufacturer license is valid for a term of 
one (1) year.
    Section #3--Covered Liquor Transactions: A Manufacturer license 
allows, without the requirement of any other license: the manufacture, 
distilling, brewing, bottling, and storage of Liquor on Tribal Lands; 
the purchase of Liquor for purposes of bottling and wholesale 
distribution; and the wholesale distribution of Liquor brewed, 
distilled, bottled, or otherwise manufactured on Tribal Lands.
    Section #4--Exemptions: Manufacturer license holders engaged in 
wholesale Liquor Transactions are exempt from obtaining a Wholesaler 
license under Part 4 of this Code, but shall comply with all applicable 
obligations of a Wholesaler licensee. Although, a holder of a 
Manufacturer license who engages in Wholesale is not required to obtain 
a Wholesale license,

[[Page 54738]]

such conduct must be disclosed on the application and renewal 
application.

Part 4 Wholesaler License

    Section #1--License Required: A person may not Distribute Liquor 
from a location on Tribal Lands or store Liquor on Tribal Lands for the 
purposes or intent of distributing such Liquor, unless said person has 
received a Wholesaler license from the Commission.
    Section #2--Term: The Wholesaler license is valid for a term of 
three (3) years.
    Section #3--Covered Liquor Transactions: A Wholesaler license 
allows, without the requirement of any other license, the distribution 
of Liquor on or from the location on Tribal Lands designated in the 
Wholesaler license.

Part 5 Retailer License

    Section #1--License Required: A person may not engage in retail 
Sale of Liquor from a location on Tribal Lands unless said person has 
received a Retailer license from the Commission.
    Section #2--Term: The Retailer license is valid for a term of one 
(1) year.
    Section #3--Covered Liquor Transactions: A Retailer license allows, 
without the requirement of any other license: the purchase of Liquor 
from a Wholesaler for retail Sale; the Sale at retail and offering for 
Sale at retail on the premises of the Retailer specified in the 
Retailer license for use of consumption but not for resale in any form; 
and if the Retailer license permits On Premises, the Consumption of 
Liquor, including sampling on the premises of the Retailer by customers 
of the Retailer.

Part 6 Licensee Obligations

    Section #1--Licensee Duties: All licensees shall:
    (a) at all times comply with this Code, rules and regulations 
promulgated pursuant to this Code, and all other applicable Tribal 
laws, State liquor laws, and applicable federal laws;
    (b) provide the Commission written notice of a material change, 
including but not limited to, company name, address, management, 
bankruptcy, reorganization, complaints or felony convictions against 
Key Participant licensees, not later than ten (10) days after the 
change occurs;
    (c) establish sanitation, security, and other related policies that 
comply with the Code, Tribal and federal laws, and transmit current 
copies to the Commission when revised;
    (d) post license in all physical locations where the business is 
transacted;
    (e) preserve records of the purchase and Sale of Liquor, including 
books of account, invoices, and bills for a period of two (2) years;
    (f) provide the Commission access to investigate books, accounts 
and records;
    (g) submit monthly reports with details as required by the 
Commission;
    (h) submit annual reports to the Commission which at a minimum 
shall include:
    i. name, address and contact information for licensee and Key 
Participants;
    ii. description of Liquor Transactions conducted;
    iii. sworn statement licensee has complied with Tribal laws, 
applicable State liquor laws, and federal laws; and
    iv. the name and signature of agent who will accept service of 
process on behalf of the licensee;
    (i) conduct internal audits to ensure compliance with Tribal laws, 
applicable State liquor laws and federal laws, and submit the results 
to the Commission.
    Section #2--Prohibited Acts: Licensees may not:
    (a) allow loitering by intoxicated persons, rowdiness, undue noise, 
or any other disturbance offensive to the public areas near the 
location of the licensee;
    (b) engage in Liquor Transactions in violation of this Code, State 
liquor laws, or applicable federal laws; or
    (c) fail to pay taxes required under the laws of the Tribe.

Part 7 Enforcement and Hearings

    Section #1--Code Enforcement: Except as provided otherwise in this 
Code, the Commission shall have jurisdiction over all persons violating 
the Code within the jurisdiction of the Tribe.
    Section #2--License Denial, Suspension or Revocation:
    2.1 Grounds for Denial, Suspension, or Revocation. The Commission 
shall deny an applicant or suspend or revoke a license if the 
Commission finds any person:
    (a) failed to pay license application fee to Commission;
    (b) made a material misstatement or omission on the application or 
any document submitted to the Commission;
    (c) withheld or provided incomplete or insufficient pertinent 
information;
    (d) refused to comply with any lawful order, inquiry, directive of 
the Commission, or the Tribal Council;
    (e) violated this Code or the rules and regulations of the 
Commission;
    (f) aided another or conspired to violate this Code or the rules 
and regulations of the Commission; engaged in Liquor Transactions not 
authorized by this Code;
    (g) knowingly falsified books or records;
    (h) failed to keep sufficient books or records for the Commission 
to determine compliance with Tribal laws, applicable State liquor laws, 
and federal law;
    (i) has had an order entered against them by an administrative 
agency of any jurisdiction and the order is based on conduct involving 
fraud, deceit or misrepresentation;
    (j) has had a financial order entered against them in a civil 
action based on conduct involving fraud, deceit or misrepresentation;
    (k) attempted to bribe or offer something of value to any person, 
Tribal Council member, or the Regulator or member of the Commission in 
attempt to receive favorable treatment under the Code, or applicable 
Tribal or federal law;
    (l) poses a threat to the public interest or the effective 
regulation of Liquor Transactions;
    (m) creates or enhances the danger of unsuitable, unfair, or 
illegal practices and methods and activities related to Liquor 
Transactions;
    (n) was a former licensee pursuant to this Code whose license was 
suspended and not reinstated, or revoked;
    (o) was not eligible for licensure for any of the reasons 
identified at Part 2, Section 3.2(e) and Part 2, Section 3.3(e).
    2.2 Procedure for Denial. When issuing a denial of a license 
application, the Commission shall:
    (a) provide written notice of the ineligibility to receive a 
license, which shall state the reasons for the denial; and
    (b) provide the applicant with the option to request a hearing on 
the decision, which shall follow the procedures at Part 7, Section 2.6.
    2.3 Procedure for Suspension or Revocation. Upon reasonable basis 
for belief that a licensee has violated the Code, the Commission shall 
either undertake an investigation of the person under Part 7, Section 
2.4, or immediately issue a notice of violation under Part 7, Section 
2.5.
    2.4 Investigation. The Commission may investigate and examine the 
operation and premises of any person within its jurisdiction in 
accordance with Part 2, Section 2.2:
    (a) upon complaint;
    (b) upon its own initiative when there is a reasonable basis for 
belief there has been a violation of the Code; or
    (c) whenever necessary to perform its duties and exercise its 
powers under the Code.

[[Page 54739]]

    2.5 Notice of Violation. The Commission may serve any notice of 
violation to a licensee or Key Participant explaining the basis and the 
aggrieved party's right to request a hearing, which request shall be in 
writing and made within ten (10) days of receipt of the notice.
    2.6 Hearings; Notice; Due Process; Arbiter; Appeals:
    (a) within ten (10) days after receiving a request for a hearing, 
the Commission shall schedule a hearing and issue a notice identifying 
the issues to be resolved, and the date, time and location of the 
hearing, which shall be set no sooner than five (5) days after receipt 
of the request for a hearing but no later than sixty (60) days after 
receipt of request for a hearing;
    (b) at the hearing, the affected parties shall be provided the 
opportunity to present oral or written testimony and other evidence to 
dispute the violation;
    (c) the Commission may promulgate rules governing the hearing 
procedures;
    (d) the Regulator will preside over the hearing;
    (e) the Commission shall issue a written decision within thirty 
(30) days after the hearing; and
    (f) affected parties may appeal the Commission's decision by filing 
a written appeal to the Tribal Council within twenty (20) days of 
receiving the Commission's final written decision, which shall be 
placed on the Tribal Council's agenda at its earliest convenience but 
no later than sixty (60) days after the notice of appeal is filed, 
which decision of the Tribal Council on appeal shall be final and is 
not subject to further appeal.
    Section #3--Cease and Desist Orders for Unlicensed Persons: For any 
person violating the Code, a person who does not hold a valid license, 
or there is reasonable cause that any applicable law is being violated, 
the Commission shall issue a cease-and-desist order. Any Person who 
does not comply with the cease-and-desist order will be subject to 
further enforcement action under Part 7, Section 4.
    Section #4--Civil Penalties:
    4.1 Fines for Civil Violations. Any person who fails to comply with 
a final order of the Commission or Tribal Council under Part 7, Section 
2, or a cease-and-desist order issued pursuant to Part 7, Section 3, 
may be required to pay a fine assessed by the Commission pursuant to 
regulations.
    4.2 Civil Action for Penalties. In enforcing fines and violations 
under this Section, the Commission may request the Tribal Council to 
seek recourse in the Tonto Apache Tribal Court.

William Henry Kirkland III,
Assistant Secretary-Indian Affairs.
[FR Doc. 2026-17235 Filed 8-21-26; 8:45 am]
BILLING CODE 4337-15-P


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