Fees, 62684-62689 [2011-25955]
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Federal Register / Vol. 76, No. 196 / Tuesday, October 11, 2011 / Proposed Rules
used by schools, and saws used
commercially in frequency and duration
of use;
16. Studies, research, or data on entry
information of materials being cut at
blade contact (i.e., approach angle,
approach speed, and approach force);
17. Information that supports or
disputes preliminary economic analyses
on the cost of employing technologies
that reduce blade contact injuries on
table saws;
18. Studies, research, or data on
appropriate indicators of performance
for blade-to-skin requirements that
mitigate injury;
19. Studies, research, or data that
validates human finger proxies for skinto-blade tests;
20. Studies, research, or data on
detection/reaction systems that have
been employed to mitigate blade contact
injuries;
21. Studies, research, or data on the
technical challenges associated with
developing new systems that could be
employed to mitigate blade contact
injuries;
22. Studies, research, or data on
guarding systems that have been
employed to prevent or mitigate blade
contact injuries;
23. Studies, research, or data on
kickback of a workpiece during table
saw use;
24. The costs and benefits of
mandating a labeling or instructions
requirement; and
25. Other relevant information
regarding the addressability of blade
contact injuries.
Comments and other submissions
should be identified by identified by
Docket No. CPSC–2011–0074 and
submitted in accordance with the
instructions provided above. All
comments and other submissions must
be received by December 12, 2011.
Dated: October 5, 2011.
Todd A. Stevenson,
Secretary, Consumer Product Safety
Commission.
[FR Doc. 2011–26171 Filed 10–7–11; 8:45 am]
BILLING CODE 6355–01–P
DEPARTMENT OF THE INTERIOR
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National Indian Gaming Commission
25 CFR Part 514
RIN 3141–AA40
Fees
National Indian Gaming
Commission, Interior.
ACTION: Proposed rule.
AGENCY:
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The National Indian Gaming
Commission (NIGC) proposes to amend
its fee regulations by requiring tribes to
submit their fees and fee statements on
a quarterly basis, basing the fee
calculation on the gaming operation’s
fiscal year, establishing an assessment
for fees submitted one to 90 days late,
and establishing a fingerprinting fee
payment process.
DATES: The agency must receive
comments on or before December 12,
2011.
ADDRESSES: You may submit comments
by any one of the following methods,
however, please note that comments
sent by electronic mail are strongly
encouraged.
• E-mail comments to:
reg.review@nigc.gov.
• Mail comments to: National Indian
Gaming Commission, 1441 L Street,
NW., Suite 9100, Washington, DC
20005.
• Hand deliver comments to: 1441 L
Street, NW., Suite 9100, Washington,
DC 20005.
• Fax comments to: National Indian
Gaming Commission at 202–632–0045.
FOR FURTHER INFORMATION CONTACT:
National Indian Gaming Commission,
1441 L Street, NW., Suite 9100
Washington, DC 20005. Telephone:
202–632–7009; e-mail:
reg.review@nigc.gov.
SUPPLEMENTARY INFORMATION:
SUMMARY:
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 (‘‘Commission’’) and sets
out a comprehensive framework for the
regulation of gaming on Indian lands.
The purposes of IGRA include
providing a statutory basis for the
operation of gaming by Indian Tribes as
a means of promoting tribal economic
development, self-sufficiency, and
strong tribal governments; ensuring that
the Indian tribe is the primary
beneficiary of the gaming operation; and
declaring that the establishment of
independent federal regulatory
authority for gaming on Indian lands,
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the establishment of federal standards
for gaming on Indian lands, and the
establishment of a National Indian
Gaming Commission are necessary to
meet congressional concerns regarding
gaming and to protect such gaming as a
means of generating tribal revenue. 25
U.S.C. 2702.
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 which are
defined as the annual total amount of
money wagered, less any amounts paid
out as prizes or paid for prizes awarded
and less allowance for amortization of
capital expenditures for structures. 25
U.S.C. 2717(a)(6). 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 .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.
On November 18, 2010, the National
Indian Gaming Commission (NIGC)
issued a Notice of Inquiry and Notice of
Consultation advising the public that
the NIGC was conducting a
comprehensive review of its regulations
and requesting public comment on
which of its regulations were most in
need of revision, in what order the
Commission should review its
regulations, and the process NIGC
should utilize to make revisions. 75 FR
70680. On April 4, 2011, after holding
eight consultations and reviewing all
comments, NIGC published a Notice of
Regulatory Review Schedule (NRR)
setting out a consultation schedule and
process for review. 76 FR 18457. Part
514 was included in the first regulatory
group reviewed pursuant to the NRR.
III. Development of the Proposed Rule
The Commission conducted a total of
11 tribal consultations as part of its
review of Part 514. Tribal consultations
were held in every region of the country
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and were attended by over 189 tribes
and 535 tribal leaders or their
representatives. In addition to tribal
consultations, on May 10, 2011, the
Commission requested public comment
on a Preliminary Draft of amendments
to Part 514. 76 FR 26967. After
considering the comments received
from the public and through tribal
consultations, the Commission proposes
five amendments to Part 514: changing
the fee calculation from a calendar year
to a fiscal year basis; changing the
payment schedule to a quarterly
payment system; ensuring language is
consistent with industry standards;
creating a ticketing system for payments
submitted late; and formalizing the
fingerprinting fee system. The
Commission does not propose any
amendments to the definition of gross
gaming revenue.
A. Change the Fee Calculation to a
Calculation Based on a Gaming
Operation’s Fiscal Year
Currently, each gaming operation
regulated by IGRA must submit fee
statements showing the calculation of
assessable gross revenues for the
previous calendar year. The Preliminary
Draft of amendments to Part 514
proposed changing the timeframe of the
fee calculation from the calendar year to
the gaming operation’s fiscal year. It is
important to note that fees set by the
Commission continue to be based on the
gross gaming revenues of tribes, subject
to the .08 percent limit established by
25 U.S.C. 2717. Comments received on
the Preliminary Draft of Part 514
generally supported basing annual fees
on a gaming operation’s fiscal year
rather than a calendar year. One
commenter objected to the use of a fiscal
year for calculating annual fees. The
commenter expressed concern created
by a conversion from a calendar year to
a fiscal year and the inevitable overlap
period that conversion would create.
In this proposed rule, Section 514.7
addresses the overlap period by
requiring the tribe to notify the
Commission of the ‘‘stub period’’ and
submit the financial statements and fees
for that period within 90 days of the
tribe’s request. Further, this proposed
rule does not mandate a tribe change
their fiscal year. While many tribes
utilize a fiscal year that is not based on
the calendar year, other tribes do utilize
a fiscal year based on a calendar year.
The Commission believes that the use of
a fiscal year for calculating annual fees
and completing fee statements will
result in fewer inaccuracies in the
calculation. The Commission notes that
errors in calculating the fees have
occurred as a result of a gaming
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operation’s fiscal year being different
than the calendar year. This proposed
amendment changes the annual
timeframe for calculating the fees; the
formula contained in the regulation for
calculating the assessable gross gaming
revenue remains the same. The
Commission believes that this proposed
amendment will result in greater
efficiencies for both NIGC and tribes by
reducing the likelihood of errors in the
fee calculation.
B. Require Submission of Quarterly Fee
Statements and Payments
Part 514 currently requires each
gaming operation regulated by IGRA to
submit bi-annual fee statements
showing its assessable gross revenues
and to submit fee payment with those
statements. The statements must show
the amounts derived from each class of
game, the amounts deducted for prizes,
and amounts deducted for amortization
of structures. The statements must also
include the computation of the fees
payable, showing all the amounts used
in the calculation. The statements are
due on or before June 30th and
December 31st of each year.
The Preliminary Draft of Part 514
proposed changing from a bi-annual
submission requirement to a quarterly
submission requirement. Comments
support this proposed amendment,
noting however, that there should be no
prohibition on pre-paying the fees for an
entire year. The Commission is not
proposing a revision that would prohibit
pre-payment. However, quarterly fee
statements are still required, even if the
fee has been prepaid. Based on a review
of the comments received, the
Commission proposes to amend Part
514 to require the submission of
quarterly fee statements and payments.
C. Ensure Regulation Language is
Consistent With Industry Standards
The discussion draft Part 514
proposed amendments which would
utilize standard industry language. The
discussion draft proposed changing
‘‘admission fees’’ to ‘‘entry fees’’. ‘‘Entry
fee’’ is a term commonly used in the
gaming industry and the Commission
believes the clarification will eliminate
concern that an ‘‘admission fee’’
includes admission to concerts or other
non-gaming activity. The Commission
did not receive any comments on the
Preliminary Draft that opposed the
changes. Accordingly, the Commission
proposes amending Part 514 to
incorporate these revisions.
D. Revise the Late Payment Fee System
IGRA and NIGC regulations provide
that a failure to pay fees may result in
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closure or revocation of approval of any
license, ordinance, or resolution
required under IGRA. The NIGC has
issued Notices of Violation (NOV) and
civil fine assessments to tribes
submitting their fees late. The
Commission notes that because the
NIGC does not receive federal
appropriations to fund its operations, it
is vital that fees are submitted in a
timely manner to ensure the continued
funding of NIGC operations. Tribes have
commented that a NOV for the late
payment of fees can be an unnecessarily
punitive response. In response to this
concern, the Commission circulated in
the Preliminary Draft a fine system that
would address fees paid less than and
upto 90 days after they are due.
Comments received on the
Preliminary Draft supported the
development of a system that addresses
a late payment in a tiered approach.
Comments acknowledged the need for
submission of fees in a timely manner,
but also noted that the circumstances of
minor delays should be considered
before issuance of a NOV and civil fine
assessment.
The Commission proposes amending
Part 514 to add a ‘‘ticket’’ system which
assesses a fine for a late fee payment.
The proposed Rule distinguishes
between ‘‘late payments’’ and ‘‘failure to
pay annual fees.’’ A payment received
between 1 and 90 days late is a ‘‘late
payment’’ and would be subject to an
increasing percentage based late
payment fine. A payment received after
90 days constitutes a ‘‘failure to pay
annual fees’’ and subjects the tribe to a
potential NOV and civil fine
assessment. The proposed rule also
includes a mechanism whereby the
Chair may consider any mitigating
circumstances surrounding the late
payments and reduce the fine due. Per
federal law, any fines are payable to
U.S. Treasury, not the NIGC.
E. Formalize the Fingerprinting Fee
Process
The NOI asked whether the Part
should include a section on fingerprint
processing fees. Comments received in
response to the NOI supported this
revision.
The Commission included in the
Preliminary Draft provisions for the
collection of fees for processing
fingerprints. The section requires the
Commission to adopt preliminary rates
for processing fingerprints at the same
time as the annual fee schedule is set
and modified (March 1 and June 1 of
each year). If a tribe fails to pay its bill
for fingerprint fees, the Chair may
suspend further fingerprint card
processing for that tribe.
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Federal Register / Vol. 76, No. 196 / Tuesday, October 11, 2011 / Proposed Rules
Comments received supported this
revision. Some comments expressed
concern about fluctuating costs and the
need to adjust costs as needed. In order
to address this issue, the proposed rule
provides for the Commission to review
the fee rate annually and establish a
preliminary rate in March and adopt a
final rate in July of each year. Another
comment recommended the
fingerprinting fees being included in the
calculation of net revenues as a
statutorily required operating expense.
The proposed draft does not include
this language as net revenues is a
statutorily defined term.
The proposed amendment includes
the provisions circulated in the
Preliminary Draft. The Commission
believes formalizing the procedures for
assessing fingerprint card processing
fees in a regulation provides
transparency and clarity.
F. Definition of Gross Gaming Revenue
In the Notice of Inquiry, the
Commission asked whether the
definition of gross gaming revenue
should be revised to include the GAAP
definition. The discussion draft
however, did not include this revision.
Comments noted that the GAAP
definition, while providing a standard
definition, may be inconsistent with the
definition contained in the Act. The
Commission agrees and therefore does
not propose any change to the definition
of gross gaming revenue.
Regulatory Matters
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.
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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 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.
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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 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 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.
Authority: 25 U.S.C. 2706(b)(10); E.O.
13175.
Dated: October 3, 2011, Washington, DC.
Text of the Proposed Rules
For the reasons discussed in the
Preamble, the 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 be
published?
514.3 What is the maximum fee rate?
514.4 What are ‘‘assessable gross revenues’’
and how does a tribe calculate the
amount of the annual fees it owes?
514.5 When must a tribe pay its annual
fees?
514.6 What are the quarterly statements that
must be submitted with the fee
payments?
514.7 What should a tribe do if it changes
its fiscal year?
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514.8 Where should fees, quarterly
statements, and other communications
about fees be sent?
514.9 What happens if a tribe 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 tribe or gaming operation
appeal a proposed late fee?
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 a tribe overpays its
fees 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, 2710,
2717, 2717a
§ 514.1
What is the purpose of this part?
Each gaming operation under the
jurisdiction of the Commission,
including a tribe with a certificate of
self-regulation, 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 be
published?
(a) The Commission shall adopt
preliminary rates for each calendar year
no later than March 1st of each year,
and, if considered necessary, shall
modify those rates no later than June 1st
of that 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 percent of the
first $1,500,000 (1st tier), and
(2) No more than 5 percent of
amounts in excess of the first $1,500,000
(2nd tier) of the assessable gross
revenues from each gaming operation
subject to the jurisdiction of the
Commission.
(b) If a tribe has a certificate of selfregulation, the rate of fees imposed shall
be no more than .25 percent of
assessable gross revenues from selfregulated class II gaming operations.
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§ 514.4 What are ‘‘assessable gross
revenues’’ and how does a tribe calculate
the amount of the annual fee it owes?
(a) For purposes of computing fees,
assessable gross revenues for each
gaming operation are the annual total
amount of money wagered on class II
and III games, entry fees (including table
or card fees), less any amounts paid out
as prizes or paid for prizes awarded, and
less an allowance for amortization of
capital expenditures for structures as
reflected in the gaming operation’s
audited financial statements.
(b) Each gaming operation subject to
these regulations shall calculate the
annual fee based on the gaming
operation’s fiscal year.
(c) Unless otherwise provided by the
regulations, generally accepted
accounting principles shall be used.
(d) The allowance for amortization of
capital expenditures for structures shall
be either:
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(1) An amount not to exceed 5% of
the cost of structures in use throughout
the year and 2.5% (two and one-half
percent) of the cost of structures in use
during only a part of the year; or
(2) An amount not to exceed 10% of
the total amount of depreciation
expenses for the year.
(e) Examples of computations follow:
(1) For paragraph (d)(1) of this
section:
Gross gaming revenues:
Money wagered ........................................................................................................................................................
Entry fees .................................................................................................................................................................
Less:
Prizes paid in cash ...................................................................................................................................................
Cost of other prizes awarded ...................................................................................................................................
Gross gaming profit ..................................................................................................................................................
Less allowance for amortization of capital expenditures for structures:
Capital expenditures for structures made in—
Prior years .........................................................................................................................................................
Current year ......................................................................................................................................................
Maximum allowance:
$750,000 × .05 = ...............................................................................................................................................
50,000 × .025 = .................................................................................................................................................
Assessable gross revenues .....................................................................................................................................
$1,000,000
5,000
....................
....................
$1,005,000
500,000
10,000
495,000
510,000
750,000
50,000
....................
....................
37,500
1,250
....................
38,750
....................
456,250
$5,000
$1,000,000
1,005,000
500,000
10,000
495,000
510,000
(2) For paragraph (d)(2) of this
section:
Gross gaming revenues:
Money wagered ........................................................................................................................................................
Entry fees .................................................................................................................................................................
Less:
Prizes paid in cash ...................................................................................................................................................
Cost of other prizes awarded ...................................................................................................................................
Gross gaming profit ..................................................................................................................................................
Less allowance for amortization of capital expenditures for structures:
Total amount of depreciation per books ..................................................................................................................
Maximum allowance:
$400,000 × .10 = ...............................................................................................................................................
Gross gaming revenues ...........................................................................................................................................
Assessable gross revenues .....................................................................................................................................
§ 514.6 What are the quarterly statements
that must be submitted with the fee
payments?
§ 514.5
fees?
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(f) All class II and III revenues from
gaming operations are to be included.
(a) Each gaming operation subject to
the jurisdiction of the Commission shall
file with the Commission quarterly
statements showing its assessable gross
revenues for the previous 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
amortization of structures.
(c) The quarterly statements shall be
sent to the Commission within three (3)
months, six (6) months, nine (9) months,
and twelve (12) months of the end of the
gaming operation’s fiscal year.
(d) The quarterly statements shall
identify an individual or individuals to
be contacted should the Commission
When must a tribe pay its annual
Each gaming operation shall calculate
the amount of fees to be paid and remit
them with the quarterly statement
required in § 514.6. The fees payable
shall be computed using:
(a) The most recent rates of fees
adopted by the Commission pursuant to
paragraph (a) of § 514.1,
(b) The assessable gross revenues for
the previous fiscal year as calculated
using § 514.4, and
(c) The amounts paid and credits
received during the fiscal year, if
applicable.
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400,000
40,000
455,000
455,000
need to communicate further with the
gaming operation. The telephone
numbers of the individual(s) shall be
included.
(e) 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 1st tier assessable
gross revenues, as calculated using
§ 514.4, by the rate for those revenues
adopted by the Commission.
(2) Multiply the 2nd tier assessable
gross revenues, as calculated using
§ 514.4, by the rate for those revenues
adopted by the Commission.
(3) Add (total) the results (products)
obtained in paragraphs (e)(1) and (2) of
this section.
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Federal Register / Vol. 76, No. 196 / Tuesday, October 11, 2011 / Proposed Rules
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 part 577 of this chapter.
(b) Within fifteen (15) days of service
of the notice, a respondent may submit
written information about the notice to
the Chair. The Chair shall consider any
information submitted by the
1st tier revenues—$1,500,000 × 0.0%
respondent as well as the respondent’s
= ........................................................
0
2nd tier revenues—500,000 × .08% =
$400 history of untimely submissions or
Annual fees ...................................
400 failure to file statements and/or fee
Multiply for fraction of year— 1⁄4 or
.25 payments over the preceding five (5)
Fees for first payment ...................
100 years in determining the amount of the
Amount to be remitted ...........
100 late fee, if any.
(c) When practicable, within thirty
(2) [Reserved]
(30) days of issuing the notice described
(g) As required by part 571 of this
in paragraph (a) of this section to a
chapter, quarterly statements must be
respondent, the Chair of the
Commission may assess a proposed late
reconciled with a tribe’s audited or
fee against a respondent for each failure
reviewed financial statements for each
to file a timely quarterly statement and/
gaming location. These reconciliations
or fee payment:
must be made available upon the
(1) For statements and/or fee
request of any authorized representative
payments one (1) to thirty (30) calendar
of the NIGC.
days late, the Chair may propose a late
§ 514.7 What should a tribe do if it
fee of up to, but not more than ten
changes its fiscal year?
percent (10%) of the fee amount for that
If a gaming operation changes its
quarter, as calculated in § 514.6(e);
fiscal year, it shall notify the
(2) For statements and/or fee
Commission of the change within thirty payments thirty-one (31) to sixty (60)
(30) days. The Commission may request calendar days late, the Chair may
that the tribe prepare and submit to the
propose a late fee of up to, but not more
Commission the fees and statements
than fifteen percent (15%) of the fee
required by this subsection for the stub
amount for that quarter, as calculated in
period from the end of the previous
§ 514.6(e);
(3) For statements and/or fee
fiscal year to the beginning of the new
fiscal year. The submission must be sent payments sixty-one (61) to ninety (90)
calendar days late, the Chair may
to the Commission within ninety (90)
propose a late fee of up to, but not more
days of its request.
than twenty percent (20%) of the fee
§ 514.8 Where should fees, quarterly
amount for that quarter, as calculated in
statements, and other communications
§ 514.6(e).
(4) Multiply the total obtained in
paragraph (e)(3) of this section by 1⁄4.
(5) The amount computed in
paragraph (e)(4) of this section is the
amount to be remitted.
(f) Examples of fee computations
follow:
(1) Where a filing is made for the first
quarter of the fiscal year, the previous
year’s assessable gross revenues as
calculated using section 514.4 of this
Part are $2,000,000, the fee rates
adopted by the Commission are 0.0% on
the first $1,500,000 and .08% on the
remainder, the amounts to be used and
the computations to be made are as
follows:
srobinson on DSK4SPTVN1PROD with PROPOSALS
about fees be sent?
The statements, remittances and
communications about fees shall be
transmitted to the Commission at the
following address: Comptroller,
National Indian Gaming Commission,
1441 L Street, NW., Suite 9100,
Washington, DC 20005. Checks should
be made payable to the National Indian
Gaming Commission (do not remit
cash).
§ 514.9 What happens if a tribe 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
VerDate Mar<15>2010
17:42 Oct 07, 2011
Jkt 223001
§ 514.10 When does a late payment or
quarterly statement submission become a
failure to pay?
(a) 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)(3), and NIGC regulations, 25
CFR 573.6(a)(2). In accordance with 25
U.S.C. 2717(a)(3), 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.
(b) In accordance with § 573.6(a)(2) of
this chapter, if a tribe, management
PO 00000
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Sfmt 4702
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 tribe or gaming operation
appeal a proposed late fee?
(a) Proposed late fees assessed by the
Chair may be appealed under part 577
of this chapter.
(b) At any time prior to the filing of
a notice of appeal under part 577 of this
chapter, the Chair and the respondent
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
respondent. If a settlement agreement is
executed, the respondent 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 respondent may contest
the proposed late fee before the
Commission in accordance with part
577 of this chapter.
§ 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 respondent fails to appeal under
part 577 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 a tribe overpays
its fees 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 according to § 514.4.
(b) To the extent that revenue derived
from fees imposed under the schedule
E:\FR\FM\11OCP1.SGM
11OCP1
Federal Register / Vol. 76, No. 196 / Tuesday, October 11, 2011 / Proposed Rules
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.
DEPARTMENT OF THE TREASURY
§ 514.15 May tribes submit fingerprint
cards to the NIGC for processing?
[REG–140280–09]
§ 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 preliminary rates for each
calendar year no later than March 1st of
that year, and, if considered necessary,
shall modify those rates no later than
June 1st of that year.
(b) The fingerprint fee charge 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?
srobinson on DSK4SPTVN1PROD with PROPOSALS
(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) Fingerprint fees shall be sent to the
following address: Comptroller,
National Indian Gaming Commission,
1441 L Street, NW., Suite 9100,
Washington, DC 20005. Checks should
be made payable to the National Indian
Gaming Commission (do not remit
cash).
Dated: October 3, 2011, Washington, DC.
Tracie L. Stevens,
Chairwoman.
Steffani A. Cochran,
Vice-Chairwoman.
Daniel J. Little,
Associate Commissioner.
BILLING CODE 7565–01–P
VerDate Mar<15>2010
17:42 Oct 07, 2011
Jkt 223001
26 CFR Part 1
RIN 1545–BK16
Tribes may submit fingerprint cards to
the Commission for processing by the
Federal Bureau of Investigation (FBI)
and the Commission may charge a fee to
process fingerprint cards on behalf of
the tribes.
[FR Doc. 2011–25955 Filed 10–7–11; 8:45 am]
Internal Revenue Service
Tax Return Preparer Penalties Under
Section 6695
Internal Revenue Service (IRS),
Treasury.
ACTION: Notice of proposed rulemaking
and notice of public hearing.
AGENCY:
This document contains
proposed regulations that would modify
existing regulations related to the tax
return preparer penalties under section
6695 of the Internal Revenue Code
(Code). These proposed regulations are
necessary to monitor and to improve
compliance with the tax return preparer
due diligence requirements of section
6695(g). The proposed regulations affect
tax return preparers. This document
also provides notice of a public hearing
on these proposed regulations.
DATES: Written or electronic comments
must be received by November 10, 2011.
Outlines of topics to be discussed at the
public hearing scheduled for November
7, 2011, must be received by November
1, 2011.
ADDRESSES: Send submissions to:
CC:PA:LPD:PR (REG–140280–09), room
5205, Internal Revenue Service, PO Box
7604, Ben Franklin Station, Washington,
DC 20044. Submissions may be hand
delivered Monday through Friday
between the hours of 8 a.m. and 4 p.m.
to CC:PA:LPD:PR (REG–140280–09),
Courier’s Desk, Internal Revenue
Service, 1111 Constitution Avenue,
NW., Washington, DC, or sent
electronically via the Federal
eRulemaking Portal at https://
www.regulations.gov/Regs (IRS REG–
140280–09). The public hearing will be
held in the IRS Auditorium, Internal
Revenue Building, 1111 Constitution
Avenue, NW., Washington, DC.
FOR FURTHER INFORMATION CONTACT:
Concerning the proposed regulations,
Spence Hanemann, (202) 622–4940;
concerning submissions of comments,
the hearing, or to be placed on the
building access list to attend the
hearing, Richard Hurst, (202) 622–7180
(not toll-free numbers) or
richard.a.hurst@irscounsel.treas.gov.
SUMMARY:
SUPPLEMENTARY INFORMATION:
Paperwork Reduction Act
The collection of information
contained in these proposed regulations
PO 00000
Frm 00046
Fmt 4702
Sfmt 4702
62689
was previously reviewed and approved
by the Office of Management and
Budget in accordance with the
Paperwork Reduction Act of 1995 (44
U.S.C. 3507(d)) under control number
1545–1570. Comments on the collection
of information should be sent to the
Office of Management and Budget, Attn:
Desk Officer for the Department of the
Treasury, Office of Information and
Regulatory Affairs, Washington, DC
20503, with copies to the Internal
Revenue Service, Attn: IRS Reports
Clearance Officer,
SE:W:CAR:MP:T:T:SP, Washington, DC
20224. Comments on the collection of
information should be received by
November 10, 2011. Comments are
specifically requested concerning:
Whether the proposed collection of
information is necessary for the proper
performance of the IRS, including
whether the information will have
practical utility;
The accuracy of the estimated burden
associated with the proper collection of
information;
How the quality, utility, and clarity of
the information to be collected may be
enhanced; and
How the burden of complying with
the proposed collection of information
may be minimized, including through
the application of automated collection
techniques or other forms of information
technology.
The collection of information is in
§ 1.6695–2(b)(1) and (b)(4) of these
proposed regulations, and is an increase
in the total annual burden from the
burden in the current regulations. The
collection of this information will
improve the IRS’ ability to enforce
compliance with the due diligence
requirements under section 6695(g) with
respect to determining eligibility for, or
the amount of, the earned income credit
(EIC) under section 32.
Currently, the IRS estimates that there
are 550,000 persons who are tax return
preparers with respect to determining
the eligibility for, or the amount of, EIC.
This collection of information is
mandatory. The likely respondents are
individuals and businesses.
Estimated total annual recordkeeping
and reporting burden is 3,025,000
hours.
Estimated annual burden per tax
return preparer varies from 30 minutes
to 10 hours, depending on individual
circumstances, with an estimated
average of 5 hours and 30 minutes.
Estimated number of affected
practitioners is 550,000.
Estimated annual frequency of
responses is one time per tax return or
claim for refund on which EIC is
reported.
E:\FR\FM\11OCP1.SGM
11OCP1
]]>Agencies
[Federal Register Volume 76, Number 196 (Tuesday, October 11, 2011)]
[Proposed Rules]
[Pages 62684-62689]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2011-25955]
-----------------------------------------------------------------------
DEPARTMENT OF THE INTERIOR
National Indian Gaming Commission
25 CFR Part 514
RIN 3141-AA40
Fees
AGENCY: National Indian Gaming Commission, Interior.
ACTION: Proposed rule.
-----------------------------------------------------------------------
SUMMARY: The National Indian Gaming Commission (NIGC) proposes to amend
its fee regulations by requiring tribes to submit their fees and fee
statements on a quarterly basis, basing the fee calculation on the
gaming operation's fiscal year, establishing an assessment for fees
submitted one to 90 days late, and establishing a fingerprinting fee
payment process.
DATES: The agency must receive comments on or before December 12, 2011.
ADDRESSES: You may submit comments by any one of the following methods,
however, please note that comments sent by electronic mail are strongly
encouraged.
E-mail comments to: reg.review@nigc.gov.
Mail comments to: National Indian Gaming Commission, 1441
L Street, NW., Suite 9100, Washington, DC 20005.
Hand deliver comments to: 1441 L Street, NW., Suite 9100,
Washington, DC 20005.
Fax comments to: National Indian Gaming Commission at 202-
632-0045.
FOR FURTHER INFORMATION CONTACT: National Indian Gaming Commission,
1441 L Street, NW., Suite 9100 Washington, DC 20005. Telephone: 202-
632-7009; e-mail: reg.review@nigc.gov.
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 (``Commission'')
and sets out a comprehensive framework for the regulation of gaming on
Indian lands. The purposes of IGRA include providing a statutory basis
for the operation of gaming by Indian Tribes as a means of promoting
tribal economic development, self-sufficiency, and strong tribal
governments; ensuring that the Indian tribe is the primary beneficiary
of the gaming operation; and declaring that the establishment of
independent federal regulatory authority for gaming on Indian lands,
the establishment of federal standards for gaming on Indian lands, and
the establishment of a National Indian Gaming Commission are necessary
to meet congressional concerns regarding gaming and to protect such
gaming as a means of generating tribal revenue. 25 U.S.C. 2702.
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 which are defined as the
annual total amount of money wagered, less any amounts paid out as
prizes or paid for prizes awarded and less allowance for amortization
of capital expenditures for structures. 25 U.S.C. 2717(a)(6). 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 .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.
On November 18, 2010, the National Indian Gaming Commission (NIGC)
issued a Notice of Inquiry and Notice of Consultation advising the
public that the NIGC was conducting a comprehensive review of its
regulations and requesting public comment on which of its regulations
were most in need of revision, in what order the Commission should
review its regulations, and the process NIGC should utilize to make
revisions. 75 FR 70680. On April 4, 2011, after holding eight
consultations and reviewing all comments, NIGC published a Notice of
Regulatory Review Schedule (NRR) setting out a consultation schedule
and process for review. 76 FR 18457. Part 514 was included in the first
regulatory group reviewed pursuant to the NRR.
III. Development of the Proposed Rule
The Commission conducted a total of 11 tribal consultations as part
of its review of Part 514. Tribal consultations were held in every
region of the country
[[Page 62685]]
and were attended by over 189 tribes and 535 tribal leaders or their
representatives. In addition to tribal consultations, on May 10, 2011,
the Commission requested public comment on a Preliminary Draft of
amendments to Part 514. 76 FR 26967. After considering the comments
received from the public and through tribal consultations, the
Commission proposes five amendments to Part 514: changing the fee
calculation from a calendar year to a fiscal year basis; changing the
payment schedule to a quarterly payment system; ensuring language is
consistent with industry standards; creating a ticketing system for
payments submitted late; and formalizing the fingerprinting fee system.
The Commission does not propose any amendments to the definition of
gross gaming revenue.
A. Change the Fee Calculation to a Calculation Based on a Gaming
Operation's Fiscal Year
Currently, each gaming operation regulated by IGRA must submit fee
statements showing the calculation of assessable gross revenues for the
previous calendar year. The Preliminary Draft of amendments to Part 514
proposed changing the timeframe of the fee calculation from the
calendar year to the gaming operation's fiscal year. It is important to
note that fees set by the Commission continue to be based on the gross
gaming revenues of tribes, subject to the .08 percent limit established
by 25 U.S.C. 2717. Comments received on the Preliminary Draft of Part
514 generally supported basing annual fees on a gaming operation's
fiscal year rather than a calendar year. One commenter objected to the
use of a fiscal year for calculating annual fees. The commenter
expressed concern created by a conversion from a calendar year to a
fiscal year and the inevitable overlap period that conversion would
create.
In this proposed rule, Section 514.7 addresses the overlap period
by requiring the tribe to notify the Commission of the ``stub period''
and submit the financial statements and fees for that period within 90
days of the tribe's request. Further, this proposed rule does not
mandate a tribe change their fiscal year. While many tribes utilize a
fiscal year that is not based on the calendar year, other tribes do
utilize a fiscal year based on a calendar year. The Commission believes
that the use of a fiscal year for calculating annual fees and
completing fee statements will result in fewer inaccuracies in the
calculation. The Commission notes that errors in calculating the fees
have occurred as a result of a gaming operation's fiscal year being
different than the calendar year. This proposed amendment changes the
annual timeframe for calculating the fees; the formula contained in the
regulation for calculating the assessable gross gaming revenue remains
the same. The Commission believes that this proposed amendment will
result in greater efficiencies for both NIGC and tribes by reducing the
likelihood of errors in the fee calculation.
B. Require Submission of Quarterly Fee Statements and Payments
Part 514 currently requires each gaming operation regulated by IGRA
to submit bi-annual fee statements showing its assessable gross
revenues and to submit fee payment with those statements. The
statements must show the amounts derived from each class of game, the
amounts deducted for prizes, and amounts deducted for amortization of
structures. The statements must also include the computation of the
fees payable, showing all the amounts used in the calculation. The
statements are due on or before June 30th and December 31st of each
year.
The Preliminary Draft of Part 514 proposed changing from a bi-
annual submission requirement to a quarterly submission requirement.
Comments support this proposed amendment, noting however, that there
should be no prohibition on pre-paying the fees for an entire year. The
Commission is not proposing a revision that would prohibit pre-payment.
However, quarterly fee statements are still required, even if the fee
has been prepaid. Based on a review of the comments received, the
Commission proposes to amend Part 514 to require the submission of
quarterly fee statements and payments.
C. Ensure Regulation Language is Consistent With Industry Standards
The discussion draft Part 514 proposed amendments which would
utilize standard industry language. The discussion draft proposed
changing ``admission fees'' to ``entry fees''. ``Entry fee'' is a term
commonly used in the gaming industry and the Commission believes the
clarification will eliminate concern that an ``admission fee'' includes
admission to concerts or other non-gaming activity. The Commission did
not receive any comments on the Preliminary Draft that opposed the
changes. Accordingly, the Commission proposes amending Part 514 to
incorporate these revisions.
D. Revise the Late Payment Fee System
IGRA and NIGC regulations provide that a failure to pay fees may
result in closure or revocation of approval of any license, ordinance,
or resolution required under IGRA. The NIGC has issued Notices of
Violation (NOV) and civil fine assessments to tribes submitting their
fees late. The Commission notes that because the NIGC does not receive
federal appropriations to fund its operations, it is vital that fees
are submitted in a timely manner to ensure the continued funding of
NIGC operations. Tribes have commented that a NOV for the late payment
of fees can be an unnecessarily punitive response. In response to this
concern, the Commission circulated in the Preliminary Draft a fine
system that would address fees paid less than and upto 90 days after
they are due.
Comments received on the Preliminary Draft supported the
development of a system that addresses a late payment in a tiered
approach. Comments acknowledged the need for submission of fees in a
timely manner, but also noted that the circumstances of minor delays
should be considered before issuance of a NOV and civil fine
assessment.
The Commission proposes amending Part 514 to add a ``ticket''
system which assesses a fine for a late fee payment. The proposed Rule
distinguishes between ``late payments'' and ``failure to pay annual
fees.'' A payment received between 1 and 90 days late is a ``late
payment'' and would be subject to an increasing percentage based late
payment fine. A payment received after 90 days constitutes a ``failure
to pay annual fees'' and subjects the tribe to a potential NOV and
civil fine assessment. The proposed rule also includes a mechanism
whereby the Chair may consider any mitigating circumstances surrounding
the late payments and reduce the fine due. Per federal law, any fines
are payable to U.S. Treasury, not the NIGC.
E. Formalize the Fingerprinting Fee Process
The NOI asked whether the Part should include a section on
fingerprint processing fees. Comments received in response to the NOI
supported this revision.
The Commission included in the Preliminary Draft provisions for the
collection of fees for processing fingerprints. The section requires
the Commission to adopt preliminary rates for processing fingerprints
at the same time as the annual fee schedule is set and modified (March
1 and June 1 of each year). If a tribe fails to pay its bill for
fingerprint fees, the Chair may suspend further fingerprint card
processing for that tribe.
[[Page 62686]]
Comments received supported this revision. Some comments expressed
concern about fluctuating costs and the need to adjust costs as needed.
In order to address this issue, the proposed rule provides for the
Commission to review the fee rate annually and establish a preliminary
rate in March and adopt a final rate in July of each year. Another
comment recommended the fingerprinting fees being included in the
calculation of net revenues as a statutorily required operating
expense. The proposed draft does not include this language as net
revenues is a statutorily defined term.
The proposed amendment includes the provisions circulated in the
Preliminary Draft. The Commission believes formalizing the procedures
for assessing fingerprint card processing fees in a regulation provides
transparency and clarity.
F. Definition of Gross Gaming Revenue
In the Notice of Inquiry, the Commission asked whether the
definition of gross gaming revenue should be revised to include the
GAAP definition. The discussion draft however, did not include this
revision. Comments noted that the GAAP definition, while providing a
standard definition, may be inconsistent with the definition contained
in the Act. The Commission agrees and therefore does not propose any
change to the definition of gross gaming revenue.
Regulatory Matters
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 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 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 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.
Authority: 25 U.S.C. 2706(b)(10); E.O. 13175.
Dated: October 3, 2011, Washington, DC.
Text of the Proposed Rules
For the reasons discussed in the Preamble, the 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 be published?
514.3 What is the maximum fee rate?
514.4 What are ``assessable gross revenues'' and how does a tribe
calculate the amount of the annual fees it owes?
514.5 When must a tribe pay its annual fees?
514.6 What are the quarterly statements that must be submitted with
the fee payments?
514.7 What should a tribe do if it changes its fiscal year?
514.8 Where should fees, quarterly statements, and other
communications about fees be sent?
514.9 What happens if a tribe 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 tribe or gaming operation appeal a proposed late fee?
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 a tribe overpays its fees 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, 2710, 2717, 2717a
Sec. 514.1 What is the purpose of this part?
Each gaming operation under the jurisdiction of the Commission,
including a tribe with a certificate of self-regulation, 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.
Sec. 514.2 When will the annual rates be published?
(a) The Commission shall adopt preliminary rates for each calendar
year no later than March 1st of each year, and, if considered
necessary, shall modify those rates no later than June 1st of that
year.
(b) The Commission shall publish the rates of fees in a notice in
the Federal Register.
Sec. 514.3 What is the maximum fee rate?
(a) The rates of fees imposed shall be--
(1) No more than 2.5 percent of the first $1,500,000 (1st tier),
and
(2) No more than 5 percent of amounts in excess of the first
$1,500,000 (2nd tier) of the assessable gross revenues from each gaming
operation subject to the jurisdiction of the Commission.
(b) If a tribe has a certificate of self-regulation, the rate of
fees imposed shall be no more than .25 percent of assessable gross
revenues from self-regulated class II gaming operations.
[[Page 62687]]
Sec. 514.4 What are ``assessable gross revenues'' and how does a
tribe calculate the amount of the annual fee it owes?
(a) For purposes of computing fees, assessable gross revenues for
each gaming operation are the annual total amount of money wagered on
class II and III games, entry fees (including table or card fees), less
any amounts paid out as prizes or paid for prizes awarded, and less an
allowance for amortization of capital expenditures for structures as
reflected in the gaming operation's audited financial statements.
(b) Each gaming operation subject to these regulations shall
calculate the annual fee based on the gaming operation's fiscal year.
(c) Unless otherwise provided by the regulations, generally
accepted accounting principles shall be used.
(d) The allowance for amortization of capital expenditures for
structures shall be either:
(1) An amount not to exceed 5% of the cost of structures in use
throughout the year and 2.5% (two and one-half percent) of the cost of
structures in use during only a part of the year; or
(2) An amount not to exceed 10% of the total amount of depreciation
expenses for the year.
(e) Examples of computations follow:
(1) For paragraph (d)(1) of this section:
------------------------------------------------------------------------
------------------------------------------------------------------------
Gross gaming revenues:
Money wagered............................. $1,000,000 ...........
Entry fees................................ 5,000 ...........
........... $1,005,000
Less:
Prizes paid in cash....................... 500,000 ...........
Cost of other prizes awarded.............. 10,000 510,000
Gross gaming profit....................... 495,000 ...........
Less allowance for amortization of capital ........... ...........
expenditures for structures:
Capital expenditures for structures made
in--
Prior years........................... 750,000 ...........
Current year.......................... 50,000 ...........
Maximum allowance:
$750,000 x .05 =...................... 37,500 ...........
50,000 x .025 =....................... 1,250 38,750
-------------------------
Assessable gross revenues................. ........... 456,250
------------------------------------------------------------------------
(2) For paragraph (d)(2) of this section:
------------------------------------------------------------------------
------------------------------------------------------------------------
Gross gaming revenues:
Money wagered............................. ........... $1,000,000
Entry fees................................ $5,000 1,005,000
Less:
Prizes paid in cash....................... 500,000
Cost of other prizes awarded.............. 10,000 510,000
Gross gaming profit....................... 495,000 ...........
Less allowance for amortization of capital
expenditures for structures:
Total amount of depreciation per books.... 400,000
Maximum allowance:
$400,000 x .10 =...................... ........... 40,000
Gross gaming revenues..................... 455,000 ...........
Assessable gross revenues................. 455,000 ...........
------------------------------------------------------------------------
(f) All class II and III revenues from gaming operations are to be
included.
Sec. 514.5 When must a tribe pay its annual fees?
Each gaming operation shall calculate the amount of fees to be paid
and remit them with the quarterly statement required in Sec. 514.6.
The fees payable shall be computed using:
(a) The most recent rates of fees adopted by the Commission
pursuant to paragraph (a) of Sec. 514.1,
(b) The assessable gross revenues for the previous fiscal year as
calculated using Sec. 514.4, and
(c) The amounts paid and credits received during the fiscal year,
if applicable.
Sec. 514.6 What are the quarterly statements that must be submitted
with the fee payments?
(a) Each gaming operation subject to the jurisdiction of the
Commission shall file with the Commission quarterly statements showing
its assessable gross revenues for the previous 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 amortization of structures.
(c) The quarterly statements shall be sent to the Commission within
three (3) months, six (6) months, nine (9) months, and twelve (12)
months of the end of the gaming operation's fiscal year.
(d) The quarterly statements shall identify an individual or
individuals to be contacted should the Commission need to communicate
further with the gaming operation. The telephone numbers of the
individual(s) shall be included.
(e) 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 1st tier assessable gross revenues, as calculated
using Sec. 514.4, by the rate for those revenues adopted by the
Commission.
(2) Multiply the 2nd tier assessable gross revenues, as calculated
using Sec. 514.4, by the rate for those revenues adopted by the
Commission.
(3) Add (total) the results (products) obtained in paragraphs
(e)(1) and (2) of this section.
[[Page 62688]]
(4) Multiply the total obtained in paragraph (e)(3) of this section
by \1/4.\
(5) The amount computed in paragraph (e)(4) of this section is the
amount to be remitted.
(f) Examples of fee computations follow:
(1) Where a filing is made for the first quarter of the fiscal
year, the previous year's assessable gross revenues as calculated using
section 514.4 of this Part are $2,000,000, the fee rates adopted by the
Commission are 0.0% on the first $1,500,000 and .08% on the remainder,
the amounts to be used and the computations to be made are as follows:
------------------------------------------------------------------------
------------------------------------------------------------------------
1st tier revenues--$1,500,000 x 0.0% =........................... 0
2nd tier revenues--500,000 x .08% =.............................. $400
Annual fees.................................................. 400
Multiply for fraction of year-- \1/4\ or .25
Fees for first payment....................................... 100
Amount to be remitted.................................... 100
------------------------------------------------------------------------
(2) [Reserved]
(g) 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.
Sec. 514.7 What should a tribe do if it changes its fiscal year?
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 tribe 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.
Sec. 514.8 Where should fees, quarterly statements, and other
communications about fees be sent?
The statements, remittances and communications about fees shall be
transmitted to the Commission at the following address: Comptroller,
National Indian Gaming Commission, 1441 L Street, NW., Suite 9100,
Washington, DC 20005. Checks should be made payable to the National
Indian Gaming Commission (do not remit cash).
Sec. 514.9 What happens if a tribe 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 part 577 of this
chapter.
(b) Within fifteen (15) days of service of the notice, a respondent
may submit written information about the notice to the Chair. The Chair
shall consider any information submitted by the respondent as well as
the respondent'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 respondent, the Chair
of the Commission may assess a proposed late fee against a respondent
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 ten percent (10%) of the fee amount for that quarter, as
calculated in Sec. 514.6(e);
(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 fifteen percent (15%) of the fee amount for that quarter,
as calculated in Sec. 514.6(e);
(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 twenty percent (20%) of the fee amount for that quarter,
as calculated in Sec. 514.6(e).
Sec. 514.10 When does a late payment or quarterly statement
submission become a failure to pay?
(a) 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)(3), and NIGC regulations, 25 CFR 573.6(a)(2). In
accordance with 25 U.S.C. 2717(a)(3), 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.
(b) In accordance with Sec. 573.6(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.
Sec. 514.11 Can a tribe or gaming operation appeal a proposed late
fee?
(a) Proposed late fees assessed by the Chair may be appealed under
part 577 of this chapter.
(b) At any time prior to the filing of a notice of appeal under
part 577 of this chapter, the Chair and the respondent 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
respondent. If a settlement agreement is executed, the respondent 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 respondent may contest the proposed late fee
before the Commission in accordance with part 577 of this chapter.
Sec. 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 respondent fails to appeal under part 577 of this chapter,
the notice and the proposed late fee shall become a final order of the
Commission and final agency action.
Sec. 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.
Sec. 514.14 What happens if a tribe overpays its fees 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 according to Sec. 514.4.
(b) To the extent that revenue derived from fees imposed under the
schedule
[[Page 62689]]
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.
Sec. 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 (FBI) and the
Commission may charge a fee to process fingerprint cards on behalf of
the tribes.
Sec. 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 preliminary rates for each calendar year no later
than March 1st of that year, and, if considered necessary, shall modify
those rates no later than June 1st of that year.
(b) The fingerprint fee charge 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.
Sec. 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 forty-five (45) days.
(c) Fingerprint fees shall be sent to the following address:
Comptroller, National Indian Gaming Commission, 1441 L Street, NW.,
Suite 9100, Washington, DC 20005. Checks should be made payable to the
National Indian Gaming Commission (do not remit cash).
Dated: October 3, 2011, Washington, DC.
Tracie L. Stevens,
Chairwoman.
Steffani A. Cochran,
Vice-Chairwoman.
Daniel J. Little,
Associate Commissioner.
[FR Doc. 2011-25955 Filed 10-7-11; 8:45 am]
BILLING CODE 7565-01-P
