Fees, 52253-52258 [2017-24363]
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Federal Register / Vol. 82, No. 217 / Monday, November 13, 2017 / Proposed Rules
1977 (NARETPA), as amended, or under
sections 3(b) and (c) of the Smith-Lever
Act, 7 U.S.C. 343(b) and (c) or under
section 3 of the Hatch Act of 1887, 7
U.S.C. 361c.
Eligible institution means a college or
university eligible to receive funds
under the Act of August 30, 1890 (7
U.S.C. 321 et seq.) (commonly known as
the Second Morrill Act), including
Central State University, Tuskegee
University, and West Virginia State
University (1890 land-grant
institutions), and a college or university
designated under the Act of July 2, 1862
(7 U.S.C. 301, et seq.) (commonly
known as the First Morrill Act) and
located in the Commonwealth of Puerto
Rico and the insular areas of American
Samoa, Guam, Micronesia, Northern
Marianas, and the Virgin Islands (1862
land-grant institutions in insular areas).
Matching funds means funds from
non-Federal sources, including those
made available by the State to the
eligible institutions, for programs or
activities that fall within the purposes of
agricultural research and cooperative
extension under: sections 1444 and
1445 of NARETPA; the Hatch Act of
1887; and the Smith-Lever Act.
*
*
*
*
*
■ 2. Amend § 3419.2 as follows:
■ a. Remove the introductory text;
■ b. Revise Paragraphs (a) and (b).
The revisions read as follows:
§ 3419.2
Matching funds requirement.
(a) 1890 land-grant institutions: The
distribution of capacity funds are
subject to a matching requirement.
Matching funds will equal not less than
100% of the capacity funds to be
distributed to the institution.
(b) 1862 land-grant institutions in
insular areas: The distribution of
capacity funds are subject to a matching
requirement. Matching funds will equal
not less than 50% of the capacity funds
to be distributed to the institution.
*
*
*
*
*
§ 3419.3
■
[Removed]
3. Remove § 3419.3
§ 3419.4
4. Redesignate § 3419.4 as § 3419.3
and revise it to read as follows:
asabaliauskas on DSKBBXCHB2PROD with PROPOSALS
Limited waiver authority.
(a) 1890 land-grant institutions: The
Secretary may waive the matching funds
requirement in 7 CFR 3419.2 above the
50% level for any fiscal year for an
eligible institution of a State if the
Secretary determines that the State will
be unlikely to satisfy the matching
requirement.
(b) 1862 land-grant institutions in
insular areas: The Secretary may waive
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§ 3419.4 Applications for waivers for both
1890 land-grant institutions and 1862 landgrant institutions in insular areas.
Application for waivers for both 1890
land-grant institutions and 1862 landgrant institutions in insular areas. The
president of the eligible institution must
submit any request for a waiver for
matching requirements. A waiver
application must include the name of
the eligible institution, the type of
Federal capacity funds (i.e. research,
extension, Hatch, etc.), appropriate
fiscal year, the basis for the request (e.g.
one or more of the criteria identified in
§ 3419.3); current supporting
documentation, where current is
defined as within the past two years
from the date of the letter requesting the
waiver; and the amount of the request.
§ 3419.5
[Amended]
6. Amend § 3419.5 by removing the
word ‘‘formula’’ and adding, in its
place, the word ‘‘capacity’’.
■ 7. Revise § 3419.6 to read as follows:
■
§ 3419.6
[Redesignated as § 3419.3]
■
§ 3419.3
up to 100% of the matching funds
requirements in 7 CFR 3419.2 for any
fiscal year for an eligible institution in
an insular area.
(c) The criteria to waive the
applicable matching requirement for
1890 land-grant institutions and 1862
land-grant institutions in insular areas is
demonstration of one or more of the
following:
(1) Impacts from natural disaster,
flood, fire, tornado, hurricane, or
drought;
(2) State and/or institution facing a
financial crisis; or
(3) Lack of matching funds after
demonstration of good faith efforts to
obtain funds.
(d) Approval or disapproval of the
request for a waiver will be based on the
application submitted, as defined under
§ 3419.4.
■ 5. Add new § 3419.4 to read as
follows:
Use of matching funds.
The required matching funds for the
capacity programs must be used by an
eligible institution for the same purpose
as Federal award dollars: Agricultural
research and extension activities that
have been approved in the plan of work
required under sections 1445(c) and
1444(d) of the National Agricultural
Research, Extension, and Teaching
Policy Act of 1977, section 7 of the
Hatch Act of 1887, and section 4 of the
Smith-Lever Act. For all programs,
tuition dollars and student fees may not
be used as matching funds.
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§ 3419.7
52253
[Redesignated as § 3419.8]
8. Redesignate § 3419.7 as § 3419.8,
and add a new § 3419.7 to read as
follows:
■
§ 3419.7
Reporting of matching funds.
Institutions will report all capacity
matching funds expended annually
using Standard Form (SF) 425, in
accordance with 7 CFR 3430.56(a).
■ 9. Revise newly redesignated § 3419.8
to read as follows:
§ 3419.8
Redistribution of Funds.
Unmatched research and extension
funds will be reapportioned in
accordance with the research and
extension statutory distribution
formulas applicable to the 1890 and
1862 land-grant institutions in insular
areas, respectively. Any redistribution
of funds must be subject to the same
matching requirement under § 3419.2.
Done at Washington, DC, on November 2,
2017.
Sonny Ramaswamy,
NIFA Director, National Institute of Food and
Agriculture.
[FR Doc. 2017–24327 Filed 11–9–17; 8:45 am]
BILLING CODE 3410–22–P
NATIONAL INDIAN GAMING
COMMISSION
25 CFR Part 514
Fees
National Indian Gaming
Commission.
ACTION: Proposed rule.
AGENCY:
The National Indian Gaming
Commission proposes to amend its fee
regulations. The proposed rule would
require the Commission to adopt annual
fee rates no later than November 1 of
each year. In addition, the proposed rule
defines the fiscal year of the gaming
operation that will be used for
calculating the fee payments. Finally,
the proposed rule includes additional
revisions intended to clarify the fee
calculation and submission process for
gaming operations.
DATES: The agency must receive
comments on or before December 28,
2017.
ADDRESSES: You may send comments by
any of the following methods:
• Email: 514_Comments@nigc.gov.
• Fax: 202–632–7066.
• Mail: National Indian Gaming
Commission, 1849 C Street NW., MS
1621, Washington, DC 20240.
• Hand Delivery: National Indian
Gaming Commission, 90 K Street NE.,
Suite 200, Washington, DC 20002,
SUMMARY:
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between 9 a.m. and 5 p.m., Monday
through Friday, except Federal holidays.
FOR FURTHER INFORMATION CONTACT:
Austin Badger, National Indian Gaming
Commission; Telephone: 202–632–7003.
SUPPLEMENTARY INFORMATION:
I. Comments Invited
Interested parties are invited to
participate in this proposed rulemaking
by submitting such written data, views,
or arguments as they may desire.
Comments that provide the factual basis
supporting the views and suggestions
presented are particularly helpful in
developing reasoned regulatory
decisions on the proposal.
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II. Background
The Indian Gaming Regulatory Act
(IGRA or Act), Public Law 100–497, 25
U.S.C. 2701 et seq., was signed into law
on October 17, 1988. The Act
establishes the National Indian Gaming
Commission (NIGC or Commission) and
sets out a comprehensive framework for
the regulation of gaming on Indian
lands. The IGRA established an agency
funding framework whereby gaming
operations licensed by tribes pay a fee
to the Commission for each gaming
operation that conducts Class II or Class
III gaming activity that is regulated by
IGRA. 25 U.S.C. 2717(a)(1). These fees
are used to fund the Commission in
carrying out its regulatory authority.
Fees are based on the gaming
operation’s gross revenues. The rate of
fees is established annually by the
Commission and shall be payable on a
quarterly basis. 25 U.S.C. 2717(a)(3).
IGRA limits the total amount of fees
imposed during any fiscal year to 0.08
percent of the gross gaming revenues of
all gaming operations subject to
regulation under IGRA. Failure of a
gaming operation to pay the fees
imposed by the Commission’s fee
schedule can be grounds for a civil
enforcement action. 25 U.S.C.
2713(a)(1).
The purpose of Part 514 is to establish
how the NIGC sets and collects those
fees, to establish a basic formula for
tribes to utilize in calculating the
amount of fees to pay, and to advise of
the consequences for failure to pay the
fees. Part 514 further establishes how
the NIGC determines and assesses
fingerprint processing fees.
Under the current fee regulations, the
Commission adopts a preliminary fee
rate by March 1 and a final fee rate by
June 1 of every year. In addition, the
NIGC annually reviews the costs
involved in processing fingerprint cards
and adopts a preliminary rate by March
1 and a final rate by June 1. The
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Commission believes that the current
process would be improved by moving
to an annual final fee rate announced on
or before November 1 of each year. This
change would improve the
Commission’s analysis and budgeting
process and simplify the fee calculation
and payment process for gaming
operations, thereby reducing the
frequency of error in fee calculation.
Proposed changes to the fee regulations
were therefore included as a topic in a
November 22, 2016, letter to tribal
leaders introducing the Commission’s
2017 consultation series.
III. Development of the Proposed Rule
On March 24, 2017, in Tulsa, OK,
April 5, 2017, in Scottsdale, AZ, April
13, 2017, in San Diego, CA, April 20,
2017, in Billings, MT, May 4, 2017, in
Biloxi, MS, and on May 25, 2017, in
Portland, OR, the NIGC consulted with
tribes on the proposed change to the fee
regulations. In addition, the
Commission issued a discussion draft
on January 30, 2017, and solicited
written comments through July 1, 2017.
Comments received were generally
supportive of the proposed change to
the fee regulations. The Commission
developed the proposed rule after
carefully considering the comments
received.
A. Assessed Fiscal Year
The current regulation provides that
the annual fee shall be computed using
‘‘the most recent rates of fees adopted by
the Commission’’ and ‘‘the assessable
gross revenues for the previous fiscal
year.’’ As a result, the fee rate applied
to a gaming operation’s fiscal year
changes depending on when the gaming
operation’s fiscal year ends. For
example, if the Commission adopts a fee
rate on November 1, 2014 (Rate A), a
different fee rate on November 1, 2015
(Rate B), and the gaming operation’s
fiscal year ends on December 31, the
gaming operations quarterly payments
would be calculated as follows: (1) First
quarter, payable March 31, 2015, would
apply Rate A to the fiscal year ending
December 31, 2014, (2) Second quarter,
payable June 30, 2015, would apply
Rate A to the fiscal year ending
December 31, 2014, (3) Third quarter,
payable September 30, 2015, would
apply Rate A to the fiscal year ending
December 31, 2014, and (4) Fourth
quarter, payable December 31, 2015,
would apply Rate B to the fiscal year
ending December 31, 2014.
The Commission intends for the
annual rate to be applied consistently to
a gaming operation’s assessable gross
revenue for one fiscal year. The
proposed rule therefore includes
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amendments intended to better describe
the intended fee calculation. These
amendments include defining ‘‘assessed
fiscal year.’’ Under the proposed rule,
the annual fee shall be computed using
the ‘‘most recent rates of fees adopted by
the Commission’’ and ‘‘the assessable
gross revenues for the gaming
operation’s assessed fiscal year.’’
Assessed fiscal year means the most
recent fiscal year ending prior to
January 1 of the year the Commission
adopted fee rates. For example, if the
Commission adopted fee rates on
November 1, 2018, the assessed fiscal
year would be a gaming operation’s
fiscal year ending prior to January 1,
2018. For gaming operations with fiscal
years ending December 31, the assessed
fiscal year would be the fiscal year
ending December 31, 2017. For gaming
operations with fiscal years ending
September 30, the assessed fiscal year
would be the fiscal year ending
September 30, 2017. For gaming
operations with fiscal years ending June
30, the assessed fiscal year would be the
fiscal year ending June 30, 2017.
As a result, under the proposed rule,
if the Commission adopts a fee rate on
November 1, 2014 (Rate A), a different
fee rate on November 1, 2015 (Rate B),
and the gaming operation’s fiscal year
ends on December 31, the gaming
operation’s quarterly payments would
be calculated as follows: (1) First quarter
(of the gaming operation’s fiscal year),
payable March 31, 2015, would apply
Rate A to the fiscal year ending
December 31, 2013, (2) Second quarter,
payable June 30, 2015, would apply
Rate A to the fiscal year ending
December 31, 2013, (3) Third quarter,
payable September 30, 2015, would
apply Rate A to the fiscal year ending
December 31, 2013, and (4) Fourth
quarter, payable December 31, 2015,
would apply Rate B to the fiscal year
ending December 31, 2014. To continue
the example, the subsequent quarterly
payment, payable March 31, 2016,
would apply Rate B to the fiscal year
ending December 31, 2014.
As an additional example, under the
proposed rule, if the Commission adopts
a fee rate on November 1, 2014 (Rate A),
a different fee rate on November 1, 2015
(Rate B), and the gaming operation’s
fiscal year ends on September 30, the
gaming operation’s quarterly payments
would be calculated as follows: (1) First
quarter (of the gaming operation’s fiscal
year), payable December 31, 2015,
would apply Rate A to the fiscal year
ending September 30, 2013, (2) Second
quarter payable March 31, 2016, would
apply Rate A to the fiscal year ending
September 30, 2013, (3) Third quarter
payable June 30, 2016, would apply
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Rate A to the fiscal year ending
September 30, 2013, (4) Fourth quarter,
payable September 30, 2016, would
apply Rate A to the fiscal year ending
September 30, 2013. To continue the
example, the subsequent first quarter,
payable December 31, 2016, would
apply Rate B to the fiscal year ending
September 30, 2014.
B. Fees and Statements Required if a
Gaming Operation Ceases Operations
In the course of developing the
proposed rule, the Commission became
aware that the current regulations do
not describe the fees and statements
required of gaming operations that cease
operations. Section 514.7(b) of the
proposed rule now provides that the
gaming operation prepares and submits
to the Commission the fees and
statements required for the period from
the end of the most recent quarter for
which fees have been paid through the
date the gaming operation ceased
operations. For example, if a gaming
operation with a September 30 fiscal
year end ceases operations on July 31,
2017, the gaming operation will have
submitted fees and statements through
June 30, 2017. The gaming operation
would therefore still owe a payment for
the period from July 1, 2017, through
July 31, 2017.
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C. Transition Period
Comment: Some commenters
recommended that the Commission take
into account the transition period
between the current regulation and the
final rule, if adopted.
Response: The Commission agrees
and will issue guidance to describe how
gaming operations should calculate fee
payments during the transition period.
The Commission intends for the most
recently announced fee rate to carry
over until a new fee rate is announced
once a final rule is promulgated.
D. Payment Adjustments
Comment: Some commenters
recommended that the proposed rule
make clear the gaming operation’s
obligations regarding underpayment or
overpayment of the annual fee.
Response: The Commission agrees
that payment adjustments are warranted
when the gaming operation becomes
aware that prior submissions over or
underpaid the required fee amount.
Section 514.6(d)(5) of the proposed rule
provides that the amount to be remitted
be adjusted for prior amounts paid and
credits received, if applicable. The
Commission notes, however, that
pursuant to section 571.13 copies of
financial statements and audits are
required to have been provided to the
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Commission within 120 days after the
end of the gaming operation’s fiscal
year. Therefore, under the proposed
rule, audited financial statements for the
assessed fiscal year are required to be
complete before a fee payment
calculated using the assessed fiscal year
is due. The current regulation and the
proposed rule continue, however, to
require that the quarterly statements
must be reconciled with a tribe’s
audited or reviewed financial
statements for each gaming location.
E. Advanced Payment
Comment: A commenter sought
clarification as to whether the
Commission would accept prepayments under the proposed rule.
Response: The Commission accepts
pre-payments under the current
regulations and will continue to do so
under the proposed rule. Section
514.5(a) of the proposed rule provides
that the annual fee payable to the
Commission optionally may be paid in
full in the first quarterly payment.
F. Other Comments
Comment: A commenter asked
whether the NIGC would issue late
payment fees instead of issuing a notice
of violation when payments are
submitted late.
Response: The Commission notes that
the current regulation provides for late
fees for payments submitted between
one and ninety calendar days late.
Statements and/or fee payments over
ninety calendar days late constitute a
failure to pay and may result in
enforcement action. The proposed rule
does not substantively amend the late
fee or failure to pay provisions of the
current regulation.
Comment: A commenter asked
whether the Commission would amend
the definition of assessable gross
revenue to be consistent with standards
set by professional accounting
organizations.
Response: The Commission
acknowledges that professional
accounting definitions of gross revenue
differ from the Commission’s definition
of assessable gross revenue. While the
Commission’s definition of assessable
gross revenue must remain consistent
with the definition for gross revenues
contained in IGRA at 25 U.S.C.
2717(a)(6), the proposed rule includes
one change intended to conform the
Commission’s definition of assessable
gross revenue with appropriate
accounting terminology. The proposed
rule removes the word ‘‘amortization’’
from within the phrase ‘‘allowance for
amortization of capital expenditures for
structures’’ found in section 514.4(c)
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52255
and 25 U.S.C. 2717(a)(6). The
Commission understands that the term
depreciation rather than amortization is
appropriate for an allowance for capital
expenditures for structures. The
methods for determining the amount of
the allowance provided for in section
514.4(e) remains unchanged.
Comment: A commenter asked
whether the proposed rule would
reduce fees for processing fingerprint
cards.
Response: The proposed rule does not
affect how the fees for processing
fingerprint cards are determined. As
provided by the current regulation and
proposed rule, the fingerprint
processing fee is based on the fees
charged by the Federal Bureau of
Investigation and the costs incurred by
the Commission.
Regulatory Matters
Tribal Consultation
The National Indian Gaming
Commission is committed to fulfilling
its tribal consultation obligations—
whether directed by statute or
administrative action such as Executive
Order (E.O.) 13175 (Consultation and
Coordination with Indian Tribal
Governments)—by adhering to the
consultation framework described in its
Consultation Policy published July 15,
2013. The NIGC’s consultation policy
specifies that it will consult with tribes
on Commission Action with Tribal
Implications, which is defined as: Any
Commission regulation, rulemaking,
policy, guidance, legislative proposal, or
operational activity that may have a
substantial direct effect on an Indian
tribe on matters including, but not
limited to the ability of an Indian tribe
to regulate its Indian gaming; an Indian
Tribe’s formal relationship with the
Commission; or the consideration of the
Commission’s trust responsibilities to
Indian tribes. As discussed above, the
NIGC engaged in extensive consultation
on this topic and received and
considered comments in developing this
proposed rule.
Regulatory Flexibility Act
The proposed rule will not have a
significant impact on a substantial
number of small entities as defined
under the Regulatory Flexibility Act, 5
U.S.C. 601, et seq. Moreover, Indian
Tribes are not considered to be small
entities for the purposes of the
Regulatory Flexibility Act.
Small Business Regulatory Enforcement
Fairness Act
The proposed rule is not a major rule
under 5 U.S.C. 804(2), the Small
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Business Regulatory Enforcement
Fairness Act. The rule does not have an
effect on the economy of $100 million
or more. The rule will not cause a major
increase in costs or prices for
consumers, individual industries,
Federal, State, local government
agencies or geographic regions. Nor will
the proposed rule have a significant
adverse effect on competition,
employment, investment, productivity,
innovation, or the ability of the
enterprises, to compete with foreign
based enterprises.
Unfunded Mandate Reform Act
The Commission, as an independent
regulatory agency, is exempt from
compliance with the Unfunded
Mandates Reform Act, 2 U.S.C. 1502(1);
2 U.S.C. 658(1).
Takings
In accordance with Executive Order
12630, the Commission has determined
that the proposed rule does not have
significant takings implications. A
takings implication assessment is not
required.
Civil Justice Reform
In accordance with Executive Order
12988, the Commission has determined
that the proposed rule does not unduly
burden the judicial system and meets
the requirements of section 3(a) and
3(b)(2) of the Order.
National Environmental Policy Act
The Commission has determined that
the proposed rule does not constitute a
major federal action significantly
affecting the quality of the human
environment and that no detailed
statement is required pursuant to the
National Environmental Policy Act of
1969, 42 U.S.C. 4321, et seq.
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Paperwork Reduction Act
The information collection
requirements contained in this rule
were previously approved by the Office
of Management and Budget (OMB) as
required by 44 U.S.C. 3501 et seq. and
assigned OMB Control Number 3141–
0007, which expired in August of 2011.
The NIGC is in the process of reinstating
that Control Number.
List of Subjects in 25 CFR Part 514
Gambling, Indian—lands, Indian—
tribal government, Reporting and
recordkeeping requirements.
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Sec.
514.1 What is the purpose of this part?
514.2 When will the annual rates of fees be
published?
514.3 What is the maximum fee rate?
514.4 How does a gaming operation
calculate the amount of the annual fee it
owes?
514.5 When must a gaming operation pay
its annual fees?
514.6 What are the quarterly statements that
must be submitted with the fee
payments?
514.7 What should a gaming operation do if
it changes its fiscal year or ceases
operations?
514.8 Where should fees, quarterly
statements, and other communications
about fees be sent?
514.9 What happens if a gaming operation
submits its fee payment or quarterly
statement late?
514.10 When does a late payment or
quarterly statement submission become a
failure to pay?
514.11 Can a proposed late fee be appealed?
514.12 When does a notice of late
submission and/or a proposed late fee
become a final order of the Commission
and final agency action?
514.13 How are late submission fees paid,
and can interest be assessed?
514.14 What happens if the fees imposed
exceed the statutory maximum or if the
Commission does not expend the full
amount of fees collected in a fiscal year?
514.15 May tribes submit fingerprint cards
to the NIGC for processing?
514.16 How does the Commission adopt the
fingerprint processing fee?
514.17 How are fingerprint processing fees
collected by the Commission?
Authority: 25 U.S.C. 2706, 2710, 2717,
2717a.
§ 514.1
What is the purpose of this part?
Each gaming operation under the
jurisdiction of the Commission,
including a gaming operation operated
by a tribe with a certificate of selfregulation, shall pay to the Commission
annual fees as established by the
Commission. The Commission, by a
vote of not less than two of its members,
shall adopt the rates of fees to be paid.
§ 514.2 When will the annual rates of fees
be published?
(a) The Commission shall adopt the
rates of fees no later than November 1st
of each year.
(b) The Commission shall publish the
rates of fees in a notice in the Federal
Register.
§ 514.3
Therefore, for reasons stated in the
preamble, the National Indian Gaming
Commission proposes to revise 25 CFR
part 514 to read as follows:
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PART 514—FEES
What is the maximum fee rate?
(a) The rates of fees imposed shall
be—
(1) No more than 2.5% of the first
$1,500,000 of the assessable gross
revenues from each gaming operation,
and
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(2) No more than 5% of amounts in
excess of the first $1,500,000 of the
assessable gross revenues from each
gaming operation.
(b) If a tribe has a certificate of selfregulation, the rate of fees imposed on
assessable gross revenues from the class
II gaming activity shall be no more than
0.25%.
(c) The total amount of all fees
imposed on assessable gross revenues
during any fiscal year shall not exceed
0.08% of the assessable gross gaming
revenues of all gaming operations.
§ 514.4 How does a gaming operation
calculate the amount of the annual fee it
owes?
(a) The amount of annual fees owed
shall be computed using:
(1) The most recent rates of fees
adopted by the Commission, and
(2) The assessable gross revenues for
the gaming operation’s assessed fiscal
year.
(b) Assessed fiscal year means the
gaming operation’s fiscal year ending
prior to January 1 of the year the
Commission adopted fee rates.
(c) For purposes of computing fees,
assessable gross revenues for each
gaming operation are the total amount of
money wagered on class II and III
games, plus entry fees (including table
or card fees), less any amounts paid out
as prizes or paid for prizes awarded, and
less an allowance for capital
expenditures for structures as reflected
in the gaming operation’s audited
financial statements.
(d) Assessable gross revenue tiers.
Tier 1 assessable gross revenues are the
first $1,500,000 of the assessable gross
revenues from each gaming operation.
Tier 2 assessable gross revenues are the
amounts in excess of the first $1,500,000
of the assessable gross revenues from
each gaming operation.
(e) The allowance for capital
expenditures for structures shall be
either:
(1) An amount not to exceed 5% of
the cost of structures in use throughout
the assessed fiscal year and 2.5% of the
cost of structures in use during only a
part of the assessed fiscal year; or
(2) An amount not to exceed 10% of
the total amount of depreciation
expenses for the assessed fiscal year.
(f) Unless otherwise provided by
regulation, generally accepted
accounting principles shall be used.
§ 514.5 When must a gaming operation
pay its annual fees?
(a) Annual fees are payable to the
Commission on a quarterly basis. The
annual fee payable to the Commission
optionally may be paid in full in the
first quarterly payment.
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(b) Each gaming operation shall
calculate the amount of fees to be paid,
if any, and remit them with the
quarterly statement required in § 514.6
within three (3) months, six (6) months,
nine (9) months, and twelve (12) months
of the end of the gaming operation’s
fiscal year.
asabaliauskas on DSKBBXCHB2PROD with PROPOSALS
§ 514.6 What are the quarterly statements
that must be submitted with the fee
payments?
(a) Each gaming operation shall file
with the Commission quarterly
statements showing its assessable gross
revenues for the assessed fiscal year.
(b) These statements shall show the
amounts derived from each type of
game, the amounts deducted for prizes,
and the amounts deducted for the
allowance for capital expenditures for
structures.
(c) The quarterly statements shall
identify an individual or individuals to
be contacted should the Commission
need to communicate further with the
gaming operation. A telephone number
and email address for each individual
identified shall be included.
(d) Each quarterly statement shall
include the computation of the fees
payable, showing all amounts used in
the calculations. The required
calculations are as follows:
(1) Multiply the Tier 1 assessable
gross revenues by the rate for those
revenues adopted by the Commission.
(2) Multiply the Tier 2 assessable
gross revenues by the rate for those
revenues adopted by the Commission.
(3) Add (total) the results (products)
obtained in paragraphs (d)(1) and (2) of
this section.
(4) Multiply the total obtained in
paragraph (d)(3) of this section by 1⁄4.
(5) Adjust for prior amounts paid and
credits received, if applicable. The
gaming operation shall provide a
detailed justification for the adjustment.
(6) The amount computed in
paragraph (d)(5) of this section is the
amount to be remitted.
(e) As required by part 571 of this
chapter, quarterly statements must be
reconciled with a tribe’s audited or
reviewed financial statements for each
gaming location. These reconciliations
must be made available upon the
request of any authorized representative
of the NIGC.
§ 514.7 What should a gaming operation
do if it changes its fiscal year or ceases
operations?
(a) If a gaming operation changes its
fiscal year, it shall notify the
Commission of the change within thirty
(30) days. The Commission may request
that the gaming operation prepare and
VerDate Sep<11>2014
17:51 Nov 09, 2017
Jkt 244001
submit to the Commission the fees and
statements required by this subsection
for the stub period from the end of the
previous fiscal year to the beginning of
the new fiscal year. The submission
must be sent to the Commission within
ninety (90) days of its request.
(b) If a gaming operation ceases
operations, it shall notify the
Commission within (30) days. The
Commission may request that the
gaming operation, using the most recent
rates of fees adopted by the
Commission, prepare and submit to the
Commission fees and statements for the
period from the end of the most recent
quarter for which fees have been paid to
the date operations ceased. The
submission must be sent to the
Commission within (90) days of its
request.
§ 514.8 Where should fees, quarterly
statements, and other communications
about fees be sent?
Remittances, quarterly statements,
and other communications about fees
shall be sent to the Commission by the
methods provided for in the rates of fees
notice published in the Federal
Register.
§ 514.9 What happens if a gaming
operation submits its fee payment or
quarterly statement late?
(a) In the event that a gaming
operation fails to submit a fee payment
or quarterly statement in a timely
manner, the Chair of the Commission
may issue a notice specifying:
(1) The date the statement and/or
payment was due;
(2) The number of calendar days late
the statement and/or payment was
submitted;
(3) A citation to the federal or tribal
requirement that has been or is being
violated;
(4) The action being considered by the
Chair; and
(5) Notice of rights of appeal pursuant
to subchapter H of this chapter.
(b) Within fifteen (15) days of service
of the notice, the recipient may submit
written information about the notice to
the Chair. The Chair shall consider any
information submitted by the recipient
as well as the recipient’s history of
untimely submissions or failure to file
statements and/or fee payments over the
preceding five (5) years in determining
the amount of the late fee, if any.
(c) When practicable, within thirty
(30) days of issuing the notice described
in paragraph (a) of this section to a
recipient, the Chair of the Commission
may assess a proposed late fee against
a recipient for each failure to file a
timely quarterly statement and/or fee
payment:
PO 00000
Frm 00008
Fmt 4702
Sfmt 4702
52257
(1) For statements and/or fee
payments one (1) to thirty (30) calendar
days late, the Chair may propose a late
fee of up to, but not more than 10% of
the fee amount for that quarter;
(2) For statements and/or fee
payments thirty-one (31) to sixty (60)
calendar days late, the Chair may
propose a late fee of up to, but not more
than 15% of the fee amount for that
quarter;
(3) For statements and/or fee
payments sixty-one (61) to ninety (90)
calendar days late, the Chair may
propose a late fee of up to, but not more
than 20% of the fee amount for that
quarter.
§ 514.10 When does a late payment or
quarterly statement submission become a
failure to pay?
Statements and/or fee payments over
ninety (90) calendar days late constitute
a failure to pay the annual fee, as set
forth in IGRA, 25 U.S.C. 2717(a)(4), and
NIGC regulations, 25 CFR 573.4(a)(2). In
accordance with 25 U.S.C. 2717(a)(4),
failure to pay fees shall be grounds for
revocation of the approval of the Chair
of any license, ordinance or resolution
required under IGRA for the operation
of gaming. In accordance with
§ 573.4(a)(2) of this chapter, if a tribe,
management contractor, or individually
owned gaming operation fails to pay the
annual fee, the Chair may issue a notice
of violation and, simultaneously with or
subsequently to the notice of violation,
a temporary closure order.
§ 514.11 Can a proposed late fee be
appealed?
(a) Proposed late fees assessed by the
Chair may be appealed under
subchapter H of this chapter.
(b) At any time prior to the filing of
a notice of appeal under subchapter H
of this chapter, the Chair and the
recipient may agree to settle the notice
of late submission, including the
amount of the proposed late fee. In the
event a settlement is reached, a
settlement agreement shall be prepared
and executed by the Chair and the
recipient. If a settlement agreement is
executed, the recipient shall be deemed
to have waived all rights to further
review of the notice or late fee in
question, except as otherwise provided
expressly in the settlement agreement.
In the absence of a settlement of the
issues under this paragraph, the
recipient may contest the proposed late
fee before the Commission in
accordance with subchapter H of this
chapter.
E:\FR\FM\13NOP1.SGM
13NOP1
52258
Federal Register / Vol. 82, No. 217 / Monday, November 13, 2017 / Proposed Rules
§ 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?
§ 514.17 How are fingerprint processing
fees collected by the Commission?
If the recipient fails to appeal under
subchapter H of this chapter, the notice
and the proposed late fee shall become
a final order of the Commission and
final agency action.
§ 514.13 How are late submission fees
paid, and can interest be assessed?
(a) Late fees assessed under this part
shall be paid by the person or entity
assessed and shall not be treated as an
operating expense of the operation.
(b) The Commission shall transfer the
late fee paid under this subchapter to
the U.S. Treasury.
(c) Interest shall be assessed at rates
established from time to time by the
Secretary of the Treasury on amounts
remaining unpaid after their due date.
§ 514.14 What happens if the fees imposed
exceed the statutory maximum or if the
Commission does not expend the full
amount of fees collected in a fiscal year?
(a) The total amount of all fees
imposed during any fiscal year shall not
exceed the statutory maximum imposed
by Congress. The Commission shall
credit pro-rata any fees collected in
excess of this amount against amounts
otherwise due.
(b) To the extent that revenue derived
from fees imposed under the schedule
established under this paragraph are not
expended or committed at the close of
any fiscal year, such funds shall remain
available until expended to defray the
costs of operations of the Commission.
Tribes may submit fingerprint cards to
the Commission for processing by the
Federal Bureau of Investigation and the
Commission may charge a fee to process
fingerprint cards on behalf of the tribes.
asabaliauskas on DSKBBXCHB2PROD with PROPOSALS
§ 514.16 How does the Commission adopt
the fingerprint processing fee?
(a) The Commission shall review
annually the costs involved in
processing fingerprint cards and, by a
vote of not less than two of its members,
shall adopt the fingerprint processing
fee no later than November 1st of each
year.
(b) The Commission shall publish the
fingerprint processing fee in a notice in
the Federal Register.
(c) The fingerprint processing fee
shall be based on fees charged by the
Federal Bureau of Investigation and
costs incurred by the Commission.
Commission costs include Commission
personnel, supplies, equipment costs,
and postage to submit the results to the
requesting tribe.
17:51 Nov 09, 2017
Jkt 244001
Dated: November 2, 2017.
Jonodev O. Chaudhuri,
Chairman.
Kathryn Isom-Clause,
Vice Chair.
E. Sequoyah Simermeyer,
Associate Commissioner.
[FR Doc. 2017–24363 Filed 11–9–17; 8:45 am]
BILLING CODE 7565–01–P
LIBRARY OF CONGRESS
Copyright Office
37 CFR Parts 201 and 202
[Docket No. 2017–15]
Group Registration of Unpublished
Works: Extension of Comment Period
U.S. Copyright Office, Library
of Congress.
ACTION: Notice of proposed rulemaking;
extension of comment period.
AGENCY:
§ 514.15 May tribes submit fingerprint
cards to the NIGC for processing?
VerDate Sep<11>2014
(a) Fees for processing fingerprint
cards will be billed monthly to each
Tribe for cards processed during the
prior month. Tribes shall pay the
amount billed within forty-five (45)
days of the date of the bill.
(b) The Chair may suspend fingerprint
card processing for a tribe that has a bill
remaining unpaid for more than fortyfive (45) days.
(c) Remittances and other
communications about fingerprint
processing fees shall be sent to the
Commission by the methods provided
for in the rates of fees notice published
in the Federal Register.
The U.S. Copyright Office is
extending the deadlines for the
submission of written comments in
response to its October 12, 2017 notice
of proposed rulemaking, regarding the
creation of a new group registration
option for unpublished works to replace
the existing ‘‘unpublished collections’’
registration option. In this document,
the Office also clarifies that the new
group registration option is not intended
for group registration of unpublished
photographs; that is the subject of a
separate proposed rulemaking, which
would permit submission of up to 750
photographs on one application.
DATES: The comment period for the
notice of proposed rulemaking
published on October 12, 2017 (82 FR
47415), is extended. Comments must be
made in writing and must be received
in the U.S. Copyright Office no later
than November 17, 2017.
SUMMARY:
PO 00000
Frm 00009
Fmt 4702
Sfmt 4702
For reasons of government
efficiency, the Copyright Office is using
the regulations.gov system for the
submission and posting of public
comments in this proceeding. All
comments are therefore to be submitted
electronically through regulations.gov.
Specific instructions for submitting
comments are available on the
Copyright Office Web site at https://
www.copyright.gov/rulemaking/
groupunpublished/. If electronic
submission of comments is not feasible
due to lack of access to a computer and/
or the Internet, please contact the Office
for special instructions using the contact
information below.
FOR FURTHER INFORMATION CONTACT:
Robert J. Kasunic, Associate Register of
Copyrights and Director of Registration
Policy and Practice; Erik Bertin, Deputy
Director of Registration Policy and
Practice; or Regan A. Smith, Deputy
General Counsel, by telephone at 202–
707–8040 or by email at rkas@loc.gov,
ebertin@loc.gov, and resm@loc.gov.
SUPPLEMENTARY INFORMATION: As
detailed in an October 12, 2017 notice
of proposed rulemaking (‘‘NPRM’’),1 the
U.S. Copyright Office is proposing to
create a new group registration option
for a limited number of unpublished
works (‘‘GRUW’’). Under that proposal,
applicants will be allowed to include up
to five works in each submission. This
new group registration option will
replace the current ‘‘unpublished
collections’’ option.
After publication of the NPRM, there
was some understandable confusion
about the scope of the NPRM among the
photographer community, who feared
that the GRUW option would limit them
to submitting five unpublished
photographs per application. To clarify,
the Office does not intend to impose
such a limit on photographers. On
December 1, 2016, the Office issued a
separate notice of proposed rulemaking
amending the existing option for group
registration of photographs that would
create an electronic application for
group registration for published
photographs, and also create an
analogous application for group
registration for unpublished
photographs.2 Under that separate
proposed rule, photographers would be
permitted to include up to 750
photographs on each such application,
rather than the five works proposed
under the new GRUW option. See
generally 81 FR at 86649. The Office is
working on the group registration of
photographs final rule in conjunction
ADDRESSES:
1 82
2 81
E:\FR\FM\13NOP1.SGM
FR 47415 (Oct. 12, 2017).
FR 86643 (Dec. 1, 2016).
13NOP1
]]>Agencies
[Federal Register Volume 82, Number 217 (Monday, November 13, 2017)]
[Proposed Rules]
[Pages 52253-52258]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2017-24363]
=======================================================================
-----------------------------------------------------------------------
NATIONAL INDIAN GAMING COMMISSION
25 CFR Part 514
Fees
AGENCY: National Indian Gaming Commission.
ACTION: Proposed rule.
-----------------------------------------------------------------------
SUMMARY: The National Indian Gaming Commission proposes to amend its
fee regulations. The proposed rule would require the Commission to
adopt annual fee rates no later than November 1 of each year. In
addition, the proposed rule defines the fiscal year of the gaming
operation that will be used for calculating the fee payments. Finally,
the proposed rule includes additional revisions intended to clarify the
fee calculation and submission process for gaming operations.
DATES: The agency must receive comments on or before December 28, 2017.
ADDRESSES: You may send comments by any of the following methods:
Email: 514_Comments@nigc.gov.
Fax: 202-632-7066.
Mail: National Indian Gaming Commission, 1849 C Street
NW., MS 1621, Washington, DC 20240.
Hand Delivery: National Indian Gaming Commission, 90 K
Street NE., Suite 200, Washington, DC 20002,
[[Page 52254]]
between 9 a.m. and 5 p.m., Monday through Friday, except Federal
holidays.
FOR FURTHER INFORMATION CONTACT: Austin Badger, National Indian Gaming
Commission; Telephone: 202-632-7003.
SUPPLEMENTARY INFORMATION:
I. Comments Invited
Interested parties are invited to participate in this proposed
rulemaking by submitting such written data, views, or arguments as they
may desire. Comments that provide the factual basis supporting the
views and suggestions presented are particularly helpful in developing
reasoned regulatory decisions on the proposal.
II. Background
The Indian Gaming Regulatory Act (IGRA or Act), Public Law 100-497,
25 U.S.C. 2701 et seq., was signed into law on October 17, 1988. The
Act establishes the National Indian Gaming Commission (NIGC or
Commission) and sets out a comprehensive framework for the regulation
of gaming on Indian lands. The IGRA established an agency funding
framework whereby gaming operations licensed by tribes pay a fee to the
Commission for each gaming operation that conducts Class II or Class
III gaming activity that is regulated by IGRA. 25 U.S.C. 2717(a)(1).
These fees are used to fund the Commission in carrying out its
regulatory authority. Fees are based on the gaming operation's gross
revenues. The rate of fees is established annually by the Commission
and shall be payable on a quarterly basis. 25 U.S.C. 2717(a)(3). IGRA
limits the total amount of fees imposed during any fiscal year to 0.08
percent of the gross gaming revenues of all gaming operations subject
to regulation under IGRA. Failure of a gaming operation to pay the fees
imposed by the Commission's fee schedule can be grounds for a civil
enforcement action. 25 U.S.C. 2713(a)(1).
The purpose of Part 514 is to establish how the NIGC sets and
collects those fees, to establish a basic formula for tribes to utilize
in calculating the amount of fees to pay, and to advise of the
consequences for failure to pay the fees. Part 514 further establishes
how the NIGC determines and assesses fingerprint processing fees.
Under the current fee regulations, the Commission adopts a
preliminary fee rate by March 1 and a final fee rate by June 1 of every
year. In addition, the NIGC annually reviews the costs involved in
processing fingerprint cards and adopts a preliminary rate by March 1
and a final rate by June 1. The Commission believes that the current
process would be improved by moving to an annual final fee rate
announced on or before November 1 of each year. This change would
improve the Commission's analysis and budgeting process and simplify
the fee calculation and payment process for gaming operations, thereby
reducing the frequency of error in fee calculation. Proposed changes to
the fee regulations were therefore included as a topic in a November
22, 2016, letter to tribal leaders introducing the Commission's 2017
consultation series.
III. Development of the Proposed Rule
On March 24, 2017, in Tulsa, OK, April 5, 2017, in Scottsdale, AZ,
April 13, 2017, in San Diego, CA, April 20, 2017, in Billings, MT, May
4, 2017, in Biloxi, MS, and on May 25, 2017, in Portland, OR, the NIGC
consulted with tribes on the proposed change to the fee regulations. In
addition, the Commission issued a discussion draft on January 30, 2017,
and solicited written comments through July 1, 2017. Comments received
were generally supportive of the proposed change to the fee
regulations. The Commission developed the proposed rule after carefully
considering the comments received.
A. Assessed Fiscal Year
The current regulation provides that the annual fee shall be
computed using ``the most recent rates of fees adopted by the
Commission'' and ``the assessable gross revenues for the previous
fiscal year.'' As a result, the fee rate applied to a gaming
operation's fiscal year changes depending on when the gaming
operation's fiscal year ends. For example, if the Commission adopts a
fee rate on November 1, 2014 (Rate A), a different fee rate on November
1, 2015 (Rate B), and the gaming operation's fiscal year ends on
December 31, the gaming operations quarterly payments would be
calculated as follows: (1) First quarter, payable March 31, 2015, would
apply Rate A to the fiscal year ending December 31, 2014, (2) Second
quarter, payable June 30, 2015, would apply Rate A to the fiscal year
ending December 31, 2014, (3) Third quarter, payable September 30,
2015, would apply Rate A to the fiscal year ending December 31, 2014,
and (4) Fourth quarter, payable December 31, 2015, would apply Rate B
to the fiscal year ending December 31, 2014.
The Commission intends for the annual rate to be applied
consistently to a gaming operation's assessable gross revenue for one
fiscal year. The proposed rule therefore includes amendments intended
to better describe the intended fee calculation. These amendments
include defining ``assessed fiscal year.'' Under the proposed rule, the
annual fee shall be computed using the ``most recent rates of fees
adopted by the Commission'' and ``the assessable gross revenues for the
gaming operation's assessed fiscal year.''
Assessed fiscal year means the most recent fiscal year ending prior
to January 1 of the year the Commission adopted fee rates. For example,
if the Commission adopted fee rates on November 1, 2018, the assessed
fiscal year would be a gaming operation's fiscal year ending prior to
January 1, 2018. For gaming operations with fiscal years ending
December 31, the assessed fiscal year would be the fiscal year ending
December 31, 2017. For gaming operations with fiscal years ending
September 30, the assessed fiscal year would be the fiscal year ending
September 30, 2017. For gaming operations with fiscal years ending June
30, the assessed fiscal year would be the fiscal year ending June 30,
2017.
As a result, under the proposed rule, if the Commission adopts a
fee rate on November 1, 2014 (Rate A), a different fee rate on November
1, 2015 (Rate B), and the gaming operation's fiscal year ends on
December 31, the gaming operation's quarterly payments would be
calculated as follows: (1) First quarter (of the gaming operation's
fiscal year), payable March 31, 2015, would apply Rate A to the fiscal
year ending December 31, 2013, (2) Second quarter, payable June 30,
2015, would apply Rate A to the fiscal year ending December 31, 2013,
(3) Third quarter, payable September 30, 2015, would apply Rate A to
the fiscal year ending December 31, 2013, and (4) Fourth quarter,
payable December 31, 2015, would apply Rate B to the fiscal year ending
December 31, 2014. To continue the example, the subsequent quarterly
payment, payable March 31, 2016, would apply Rate B to the fiscal year
ending December 31, 2014.
As an additional example, under the proposed rule, if the
Commission adopts a fee rate on November 1, 2014 (Rate A), a different
fee rate on November 1, 2015 (Rate B), and the gaming operation's
fiscal year ends on September 30, the gaming operation's quarterly
payments would be calculated as follows: (1) First quarter (of the
gaming operation's fiscal year), payable December 31, 2015, would apply
Rate A to the fiscal year ending September 30, 2013, (2) Second quarter
payable March 31, 2016, would apply Rate A to the fiscal year ending
September 30, 2013, (3) Third quarter payable June 30, 2016, would
apply
[[Page 52255]]
Rate A to the fiscal year ending September 30, 2013, (4) Fourth
quarter, payable September 30, 2016, would apply Rate A to the fiscal
year ending September 30, 2013. To continue the example, the subsequent
first quarter, payable December 31, 2016, would apply Rate B to the
fiscal year ending September 30, 2014.
B. Fees and Statements Required if a Gaming Operation Ceases Operations
In the course of developing the proposed rule, the Commission
became aware that the current regulations do not describe the fees and
statements required of gaming operations that cease operations. Section
514.7(b) of the proposed rule now provides that the gaming operation
prepares and submits to the Commission the fees and statements required
for the period from the end of the most recent quarter for which fees
have been paid through the date the gaming operation ceased operations.
For example, if a gaming operation with a September 30 fiscal year end
ceases operations on July 31, 2017, the gaming operation will have
submitted fees and statements through June 30, 2017. The gaming
operation would therefore still owe a payment for the period from July
1, 2017, through July 31, 2017.
C. Transition Period
Comment: Some commenters recommended that the Commission take into
account the transition period between the current regulation and the
final rule, if adopted.
Response: The Commission agrees and will issue guidance to describe
how gaming operations should calculate fee payments during the
transition period. The Commission intends for the most recently
announced fee rate to carry over until a new fee rate is announced once
a final rule is promulgated.
D. Payment Adjustments
Comment: Some commenters recommended that the proposed rule make
clear the gaming operation's obligations regarding underpayment or
overpayment of the annual fee.
Response: The Commission agrees that payment adjustments are
warranted when the gaming operation becomes aware that prior
submissions over or underpaid the required fee amount. Section
514.6(d)(5) of the proposed rule provides that the amount to be
remitted be adjusted for prior amounts paid and credits received, if
applicable. The Commission notes, however, that pursuant to section
571.13 copies of financial statements and audits are required to have
been provided to the Commission within 120 days after the end of the
gaming operation's fiscal year. Therefore, under the proposed rule,
audited financial statements for the assessed fiscal year are required
to be complete before a fee payment calculated using the assessed
fiscal year is due. The current regulation and the proposed rule
continue, however, to require that the quarterly statements must be
reconciled with a tribe's audited or reviewed financial statements for
each gaming location.
E. Advanced Payment
Comment: A commenter sought clarification as to whether the
Commission would accept pre-payments under the proposed rule.
Response: The Commission accepts pre-payments under the current
regulations and will continue to do so under the proposed rule. Section
514.5(a) of the proposed rule provides that the annual fee payable to
the Commission optionally may be paid in full in the first quarterly
payment.
F. Other Comments
Comment: A commenter asked whether the NIGC would issue late
payment fees instead of issuing a notice of violation when payments are
submitted late.
Response: The Commission notes that the current regulation provides
for late fees for payments submitted between one and ninety calendar
days late. Statements and/or fee payments over ninety calendar days
late constitute a failure to pay and may result in enforcement action.
The proposed rule does not substantively amend the late fee or failure
to pay provisions of the current regulation.
Comment: A commenter asked whether the Commission would amend the
definition of assessable gross revenue to be consistent with standards
set by professional accounting organizations.
Response: The Commission acknowledges that professional accounting
definitions of gross revenue differ from the Commission's definition of
assessable gross revenue. While the Commission's definition of
assessable gross revenue must remain consistent with the definition for
gross revenues contained in IGRA at 25 U.S.C. 2717(a)(6), the proposed
rule includes one change intended to conform the Commission's
definition of assessable gross revenue with appropriate accounting
terminology. The proposed rule removes the word ``amortization'' from
within the phrase ``allowance for amortization of capital expenditures
for structures'' found in section 514.4(c) and 25 U.S.C. 2717(a)(6).
The Commission understands that the term depreciation rather than
amortization is appropriate for an allowance for capital expenditures
for structures. The methods for determining the amount of the allowance
provided for in section 514.4(e) remains unchanged.
Comment: A commenter asked whether the proposed rule would reduce
fees for processing fingerprint cards.
Response: The proposed rule does not affect how the fees for
processing fingerprint cards are determined. As provided by the current
regulation and proposed rule, the fingerprint processing fee is based
on the fees charged by the Federal Bureau of Investigation and the
costs incurred by the Commission.
Regulatory Matters
Tribal Consultation
The National Indian Gaming Commission is committed to fulfilling
its tribal consultation obligations--whether directed by statute or
administrative action such as Executive Order (E.O.) 13175
(Consultation and Coordination with Indian Tribal Governments)--by
adhering to the consultation framework described in its Consultation
Policy published July 15, 2013. The NIGC's consultation policy
specifies that it will consult with tribes on Commission Action with
Tribal Implications, which is defined as: Any Commission regulation,
rulemaking, policy, guidance, legislative proposal, or operational
activity that may have a substantial direct effect on an Indian tribe
on matters including, but not limited to the ability of an Indian tribe
to regulate its Indian gaming; an Indian Tribe's formal relationship
with the Commission; or the consideration of the Commission's trust
responsibilities to Indian tribes. As discussed above, the NIGC engaged
in extensive consultation on this topic and received and considered
comments in developing this proposed rule.
Regulatory Flexibility Act
The proposed rule will not have a significant impact on a
substantial number of small entities as defined under the Regulatory
Flexibility Act, 5 U.S.C. 601, et seq. Moreover, Indian Tribes are not
considered to be small entities for the purposes of the Regulatory
Flexibility Act.
Small Business Regulatory Enforcement Fairness Act
The proposed rule is not a major rule under 5 U.S.C. 804(2), the
Small
[[Page 52256]]
Business Regulatory Enforcement Fairness Act. The rule does not have an
effect on the economy of $100 million or more. The rule will not cause
a major increase in costs or prices for consumers, individual
industries, Federal, State, local government agencies or geographic
regions. Nor will the proposed rule have a significant adverse effect
on competition, employment, investment, productivity, innovation, or
the ability of the enterprises, to compete with foreign based
enterprises.
Unfunded Mandate Reform Act
The Commission, as an independent regulatory agency, is exempt from
compliance with the Unfunded Mandates Reform Act, 2 U.S.C. 1502(1); 2
U.S.C. 658(1).
Takings
In accordance with Executive Order 12630, the Commission has
determined that the proposed rule does not have significant takings
implications. A takings implication assessment is not required.
Civil Justice Reform
In accordance with Executive Order 12988, the Commission has
determined that the proposed rule does not unduly burden the judicial
system and meets the requirements of section 3(a) and 3(b)(2) of the
Order.
National Environmental Policy Act
The Commission has determined that the proposed rule does not
constitute a major federal action significantly affecting the quality
of the human environment and that no detailed statement is required
pursuant to the National Environmental Policy Act of 1969, 42 U.S.C.
4321, et seq.
Paperwork Reduction Act
The information collection requirements contained in this rule were
previously approved by the Office of Management and Budget (OMB) as
required by 44 U.S.C. 3501 et seq. and assigned OMB Control Number
3141- 0007, which expired in August of 2011. The NIGC is in the process
of reinstating that Control Number.
List of Subjects in 25 CFR Part 514
Gambling, Indian--lands, Indian--tribal government, Reporting and
recordkeeping requirements.
Therefore, for reasons stated in the preamble, the National Indian
Gaming Commission proposes to revise 25 CFR part 514 to read as
follows:
PART 514--FEES
Sec.
514.1 What is the purpose of this part?
514.2 When will the annual rates of fees be published?
514.3 What is the maximum fee rate?
514.4 How does a gaming operation calculate the amount of the annual
fee it owes?
514.5 When must a gaming operation pay its annual fees?
514.6 What are the quarterly statements that must be submitted with
the fee payments?
514.7 What should a gaming operation do if it changes its fiscal
year or ceases operations?
514.8 Where should fees, quarterly statements, and other
communications about fees be sent?
514.9 What happens if a gaming operation submits its fee payment or
quarterly statement late?
514.10 When does a late payment or quarterly statement submission
become a failure to pay?
514.11 Can a proposed late fee be appealed?
514.12 When does a notice of late submission and/or a proposed late
fee become a final order of the Commission and final agency action?
514.13 How are late submission fees paid, and can interest be
assessed?
514.14 What happens if the fees imposed exceed the statutory maximum
or if the Commission does not expend the full amount of fees
collected in a fiscal year?
514.15 May tribes submit fingerprint cards to the NIGC for
processing?
514.16 How does the Commission adopt the fingerprint processing fee?
514.17 How are fingerprint processing fees collected by the
Commission?
Authority: 25 U.S.C. 2706, 2710, 2717, 2717a.
Sec. 514.1 What is the purpose of this part?
Each gaming operation under the jurisdiction of the Commission,
including a gaming operation operated by a tribe with a certificate of
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 of fees be published?
(a) The Commission shall adopt the rates of fees no later than
November 1st of each year.
(b) The Commission shall publish the rates of fees in a notice in
the Federal Register.
Sec. 514.3 What is the maximum fee rate?
(a) The rates of fees imposed shall be--
(1) No more than 2.5% of the first $1,500,000 of the assessable
gross revenues from each gaming operation, and
(2) No more than 5% of amounts in excess of the first $1,500,000 of
the assessable gross revenues from each gaming operation.
(b) If a tribe has a certificate of self-regulation, the rate of
fees imposed on assessable gross revenues from the class II gaming
activity shall be no more than 0.25%.
(c) The total amount of all fees imposed on assessable gross
revenues during any fiscal year shall not exceed 0.08% of the
assessable gross gaming revenues of all gaming operations.
Sec. 514.4 How does a gaming operation calculate the amount of the
annual fee it owes?
(a) The amount of annual fees owed shall be computed using:
(1) The most recent rates of fees adopted by the Commission, and
(2) The assessable gross revenues for the gaming operation's
assessed fiscal year.
(b) Assessed fiscal year means the gaming operation's fiscal year
ending prior to January 1 of the year the Commission adopted fee rates.
(c) For purposes of computing fees, assessable gross revenues for
each gaming operation are the total amount of money wagered on class II
and III games, plus entry fees (including table or card fees), less any
amounts paid out as prizes or paid for prizes awarded, and less an
allowance for capital expenditures for structures as reflected in the
gaming operation's audited financial statements.
(d) Assessable gross revenue tiers. Tier 1 assessable gross
revenues are the first $1,500,000 of the assessable gross revenues from
each gaming operation. Tier 2 assessable gross revenues are the amounts
in excess of the first $1,500,000 of the assessable gross revenues from
each gaming operation.
(e) The allowance for capital expenditures for structures shall be
either:
(1) An amount not to exceed 5% of the cost of structures in use
throughout the assessed fiscal year and 2.5% of the cost of structures
in use during only a part of the assessed fiscal year; or
(2) An amount not to exceed 10% of the total amount of depreciation
expenses for the assessed fiscal year.
(f) Unless otherwise provided by regulation, generally accepted
accounting principles shall be used.
Sec. 514.5 When must a gaming operation pay its annual fees?
(a) Annual fees are payable to the Commission on a quarterly basis.
The annual fee payable to the Commission optionally may be paid in full
in the first quarterly payment.
[[Page 52257]]
(b) Each gaming operation shall calculate the amount of fees to be
paid, if any, and remit them with the quarterly statement required in
Sec. 514.6 within three (3) months, six (6) months, nine (9) months,
and twelve (12) months of the end of the gaming operation's fiscal
year.
Sec. 514.6 What are the quarterly statements that must be submitted
with the fee payments?
(a) Each gaming operation shall file with the Commission quarterly
statements showing its assessable gross revenues for the assessed
fiscal year.
(b) These statements shall show the amounts derived from each type
of game, the amounts deducted for prizes, and the amounts deducted for
the allowance for capital expenditures for structures.
(c) The quarterly statements shall identify an individual or
individuals to be contacted should the Commission need to communicate
further with the gaming operation. A telephone number and email address
for each individual identified shall be included.
(d) Each quarterly statement shall include the computation of the
fees payable, showing all amounts used in the calculations. The
required calculations are as follows:
(1) Multiply the Tier 1 assessable gross revenues by the rate for
those revenues adopted by the Commission.
(2) Multiply the Tier 2 assessable gross revenues by the rate for
those revenues adopted by the Commission.
(3) Add (total) the results (products) obtained in paragraphs
(d)(1) and (2) of this section.
(4) Multiply the total obtained in paragraph (d)(3) of this section
by \1/4\.
(5) Adjust for prior amounts paid and credits received, if
applicable. The gaming operation shall provide a detailed justification
for the adjustment.
(6) The amount computed in paragraph (d)(5) of this section is the
amount to be remitted.
(e) As required by part 571 of this chapter, quarterly statements
must be reconciled with a tribe's audited or reviewed financial
statements for each gaming location. These reconciliations must be made
available upon the request of any authorized representative of the
NIGC.
Sec. 514.7 What should a gaming operation do if it changes its fiscal
year or ceases operations?
(a) If a gaming operation changes its fiscal year, it shall notify
the Commission of the change within thirty (30) days. The Commission
may request that the gaming operation prepare and submit to the
Commission the fees and statements required by this subsection for the
stub period from the end of the previous fiscal year to the beginning
of the new fiscal year. The submission must be sent to the Commission
within ninety (90) days of its request.
(b) If a gaming operation ceases operations, it shall notify the
Commission within (30) days. The Commission may request that the gaming
operation, using the most recent rates of fees adopted by the
Commission, prepare and submit to the Commission fees and statements
for the period from the end of the most recent quarter for which fees
have been paid to the date operations ceased. The submission must be
sent to the Commission within (90) days of its request.
Sec. 514.8 Where should fees, quarterly statements, and other
communications about fees be sent?
Remittances, quarterly statements, and other communications about
fees shall be sent to the Commission by the methods provided for in the
rates of fees notice published in the Federal Register.
Sec. 514.9 What happens if a gaming operation submits its fee payment
or quarterly statement late?
(a) In the event that a gaming operation fails to submit a fee
payment or quarterly statement in a timely manner, the Chair of the
Commission may issue a notice specifying:
(1) The date the statement and/or payment was due;
(2) The number of calendar days late the statement and/or payment
was submitted;
(3) A citation to the federal or tribal requirement that has been
or is being violated;
(4) The action being considered by the Chair; and
(5) Notice of rights of appeal pursuant to subchapter H of this
chapter.
(b) Within fifteen (15) days of service of the notice, the
recipient may submit written information about the notice to the Chair.
The Chair shall consider any information submitted by the recipient as
well as the recipient's history of untimely submissions or failure to
file statements and/or fee payments over the preceding five (5) years
in determining the amount of the late fee, if any.
(c) When practicable, within thirty (30) days of issuing the notice
described in paragraph (a) of this section to a recipient, the Chair of
the Commission may assess a proposed late fee against a recipient for
each failure to file a timely quarterly statement and/or fee payment:
(1) For statements and/or fee payments one (1) to thirty (30)
calendar days late, the Chair may propose a late fee of up to, but not
more than 10% of the fee amount for that quarter;
(2) For statements and/or fee payments thirty-one (31) to sixty
(60) calendar days late, the Chair may propose a late fee of up to, but
not more than 15% of the fee amount for that quarter;
(3) For statements and/or fee payments sixty-one (61) to ninety
(90) calendar days late, the Chair may propose a late fee of up to, but
not more than 20% of the fee amount for that quarter.
Sec. 514.10 When does a late payment or quarterly statement
submission become a failure to pay?
Statements and/or fee payments over ninety (90) calendar days late
constitute a failure to pay the annual fee, as set forth in IGRA, 25
U.S.C. 2717(a)(4), and NIGC regulations, 25 CFR 573.4(a)(2). In
accordance with 25 U.S.C. 2717(a)(4), failure to pay fees shall be
grounds for revocation of the approval of the Chair of any license,
ordinance or resolution required under IGRA for the operation of
gaming. In accordance with Sec. 573.4(a)(2) of this chapter, if a
tribe, management contractor, or individually owned gaming operation
fails to pay the annual fee, the Chair may issue a notice of violation
and, simultaneously with or subsequently to the notice of violation, a
temporary closure order.
Sec. 514.11 Can a proposed late fee be appealed?
(a) Proposed late fees assessed by the Chair may be appealed under
subchapter H of this chapter.
(b) At any time prior to the filing of a notice of appeal under
subchapter H of this chapter, the Chair and the recipient may agree to
settle the notice of late submission, including the amount of the
proposed late fee. In the event a settlement is reached, a settlement
agreement shall be prepared and executed by the Chair and the
recipient. If a settlement agreement is executed, the recipient shall
be deemed to have waived all rights to further review of the notice or
late fee in question, except as otherwise provided expressly in the
settlement agreement. In the absence of a settlement of the issues
under this paragraph, the recipient may contest the proposed late fee
before the Commission in accordance with subchapter H of this chapter.
[[Page 52258]]
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 recipient fails to appeal under subchapter H of this
chapter, the notice and the proposed late fee shall become a final
order of the Commission and final agency action.
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 the fees imposed exceed the statutory
maximum or if the Commission does not expend the full amount of fees
collected in a fiscal year?
(a) The total amount of all fees imposed during any fiscal year
shall not exceed the statutory maximum imposed by Congress. The
Commission shall credit pro-rata any fees collected in excess of this
amount against amounts otherwise due.
(b) To the extent that revenue derived from fees imposed under the
schedule established under this paragraph are not expended or committed
at the close of any fiscal year, such funds shall remain available
until expended to defray the costs of operations of the Commission.
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 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 the fingerprint processing fee no later than
November 1st of each year.
(b) The Commission shall publish the fingerprint processing fee in
a notice in the Federal Register.
(c) The fingerprint processing fee shall be based on fees charged
by the Federal Bureau of Investigation and costs incurred by the
Commission. Commission costs include Commission personnel, supplies,
equipment costs, and postage to submit the results to the requesting
tribe.
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) Remittances and other communications about fingerprint
processing fees shall be sent to the Commission by the methods provided
for in the rates of fees notice published in the Federal Register.
Dated: November 2, 2017.
Jonodev O. Chaudhuri,
Chairman.
Kathryn Isom-Clause,
Vice Chair.
E. Sequoyah Simermeyer,
Associate Commissioner.
[FR Doc. 2017-24363 Filed 11-9-17; 8:45 am]
BILLING CODE 7565-01-P
