Background Investigations for Persons or Entities With a Financial Interest in or Having a Management Responsibility for a Management Contract, 68446-68447 [2021-25844]

Agencies

• DEPARTMENT OF THE INTERIOR
• National Indian Gaming Commission

[Federal Register Volume 86, Number 229 (Thursday, December 2, 2021)]
[Proposed Rules]
[Pages 68446-68447]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2021-25844]


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DEPARTMENT OF THE INTERIOR

National Indian Gaming Commission

25 CFR Part 537

RIN 3141-AA58


Background Investigations for Persons or Entities With a 
Financial Interest in or Having a Management Responsibility for a 
Management Contract

AGENCY: National Indian Gaming Commission, Department of the Interior.

ACTION: Notice of proposed rulemaking.

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SUMMARY: The National Indian Gaming Commission proposes to amend its 
procedures for processing a request for approval of a management 
contract under the Indian Gaming Regulatory Act. The proposed 
amendments make the following changes to the current regulations. The 
regulations will now require a background investigation of all persons 
who have 10 percent or more direct or indirect financial interest in a 
management contract. The regulations will also require a background 
investigation of all entities with 10 percent or more financial 
interest in a management contract. The regulations now require a 
background investigation of any other person or entity with a direct or 
indirect financial interest in a management contract otherwise 
designated by the Commission. The regulations authorize the Chair, 
either by request or unilaterally, to exercise discretion to reduce the 
scope of the information to be furnished and background investigation 
to be conducted for certain entities.

DATES: Written comments on this proposed rule must be received on or 
before January 3, 2022.

ADDRESSES: You may submit comments by any one of the following methods, 
however, please note that comments sent by electronic mail are strongly 
encouraged.
    [ssquf] Federal eRulemaking Portal: Go to https://www.regulations.gov. Follow the instructions for submitting comments.
    [ssquf] Email comments to: [email protected].
    [ssquf] Mail comments to: National Indian Gaming Commission, 1849 C 
Street NW, MS 1621, Washington, DC 20240.
    [ssquf] Fax comments to: National Indian Gaming Commission at 202-
632-0045.

FOR FURTHER INFORMATION CONTACT: Heather McMillan Nakai at (202) 632-
7003 or by fax (202) 632-7066 (these numbers are not toll free).

SUPPLEMENTARY INFORMATION:

I. Comments Invited

    Interested parties are invited to participate in this proposed 
rulemaking by submitting such written data, views, or arguments as they 
may desire. Comments that provide the factual basis supporting the 
views and suggestions presented are particularly helpful in developing 
reasoned regulatory decisions on the proposal.

II. Background

    The Indian Gaming Regulatory Act (IGRA or Act), Public Law 100-497, 
25 U.S.C. 2701 et seq., was signed into law on October 17, 1988. The 
Act established the National Indian Gaming Commission (``NIGC'' or 
``Commission'') and set out a comprehensive framework for the 
regulation of gaming on Indian lands. On January 22, 1993, the NIGC 
published a final rule in the Federal Register called Background 
Investigations for Person or Entities with a Financial Interest in a 
Management Contract, 58 FR 5831. The rule added a new part to the 
Commission's regulations implementing the mandates of the Indian Gaming 
Regulatory Act of 1988 by establish the requirements and procedures for 
the approval of management contracts concerning Indian gaming 
operations and the conduct of related background investigations. The 
Commission has substantively amended them numerous times, most recently 
in 2012 (77 FR 47516).

III. Development of the Rule

    On, June 9, 20201, the National Indian Gaming Commission sent a 
Notice of Consultation announcing that the Agency intended to consult 
on a number of topics, including proposed changes to the management 
contract process. Prior to consultation, the Commission released 
proposed discussion drafts of the regulations for review. The proposed 
amendment to the management contract regulations were intended to 
improve the Agency's efficiency in processing management agreements and 
background investigations, clarify existing regulations, and provide 
guidance on extending management contracts. The Commission held two 
virtual

[[Page 68447]]

consultation sessions in July of 2021 to receive tribal input on the 
possible changes.
    The Commission reviewed all comments and now proposes these changes 
which it believes will improve the Agency's efficiency in processing 
background investigations.

IV. Regulatory Matters

Regulatory Flexibility Act

    The rulemaking will not have a significant impact on a substantial 
number of small entities as defined under the Regulatory Flexibility 
Act, 5 U.S.C. 601, et seq. Moreover, Indian Tribes are not considered 
to be small entities for the purposes of the Regulatory Flexibility 
Act.

Small Business Regulatory Enforcement Fairness Act

    The proposed rule is not a major rule under 5 U.S.C. 804(2), the 
Small Business Regulatory Enforcement Fairness Act. The rulemaking does 
not have an effect on the economy of $100 million or more. The proposed 
rule will not cause a major increase in costs or prices for consumers, 
individual industries, Federal, State, local government agencies or 
geographic regions, nor will the proposed rule have a significant 
adverse effect on competition, employment, investment, productivity, 
innovation, or the ability of the enterprises, to compete with foreign 
based enterprises.

Unfunded Mandate Reform Act

    The Commission, as an independent regulatory agency, is exempt from 
compliance with the Unfunded Mandates Reform Act, 2 U.S.C. 1502(1); 2 
U.S.C. 658(1).

Takings

    In accordance with Executive Order 12630, the Commission has 
determined that the proposed rule does not have significant takings 
implications. A takings implication assessment is not required.

Civil Justice Reform

    In accordance with Executive Order 12988, the Commission has 
determined that the proposed rule does not unduly burden the judicial 
system and meets the requirements of sections 3(a) and 3(b)(2) of the 
order.

National Environmental Policy Act

    The Commission has determined that the rulemaking does not 
constitute a major federal action significantly affecting the quality 
of the human environment and that no detailed statement is required 
pursuant to the National Environmental Policy Act of 1969, 42 U.S.C. 
4321, et seq.

Paperwork Reduction Act

    The information collection requirements contained in this rule were 
previously approved by the Office of Management and Budget as required 
by 44 U.S.C. 3501, et seq., and assigned Office of Management and 
Budget (OMB) Control Number 3141-0004.

Tribal Consultation

    The National Indian Gaming Commission is committed to fulfilling 
its tribal consultation obligations--whether directed by statute or 
administrative action such as Executive Order (E.O.) 13175 
(Consultation and Coordination with Indian Tribal Governments)--by 
adhering to the consultation framework described in its Consultation 
Policy published July 15, 2013. The NIGC's consultation policy 
specifies that it will consult with tribes on Commission Action with 
Tribal Implications, which is defined as: Any Commission regulation, 
rulemaking, policy, guidance, legislative proposal, or operational 
activity that may have a substantial direct effect on an Indian tribe 
on matters including, but not limited to the ability of an Indian tribe 
to regulate its Indian gaming; an Indian tribe's formal relationship 
with the Commission; or the consideration of the Commission's trust 
responsibilities to Indian tribes.
    Pursuant to this policy, on June 9, 20201, the National Indian 
Gaming Commission sent a Notice of Consultation announcing that the 
Agency intended to consult on a number of topics, including proposed 
changes to the management contract process.

List of Subjects in 25 CFR Part 537

    Administrative practice and procedure, Gambling, Indians--business 
and finance, Indian--Indian lands, Indians--tribal government.

    For the reasons discussed in the Preamble, the Commission proposes 
to amend its regulations at 25 CFR part 537 as follows:

PART 537--BACKGROUND INVESTIGATIONS FOR PERSONS OR ENTITIES WITH A 
FINANCIAL INTEREST IN, OR HAVING MANAGEMENT RESPONSIBILITY FOR, A 
MANAGEMENT CONTRACT

0
1. The authority citation for part 537 continues to read as follows:

    Authority:  25 U.S.C. 81, 2706(b)(10), 2710(d)(9), 2711.

0
2. Amend Sec.  537.1 by revising paragraphs (a)(3) through (5) and 
adding paragraph (d) to read as follows:


Sec.  537.1  Applications for approval.

    (a) * * *
    (3) All persons who have 10 percent or more direct or indirect 
financial interest in a management contract;
    (4) All entities with 10 percent or more financial interest in a 
management contract; and
    (5) Any other person or entity with a direct or indirect financial 
interest in a management contract otherwise designated by the 
Commission.
* * * * *
    (d) For any of the following entities, or individuals associated 
with the following entities, the Chair may, upon request or 
unilaterally, exercise discretion to reduce the scope of the 
information to be furnished and background investigation to be 
conducted:
    (1) Tribe as defined at 25 CFR 502.13;
    (2) Wholly owned tribal entity;
    (3) National bank; or
    (4) Institutional investor that is federally regulated or is 
required to undergo a background investigation and licensure by a state 
or tribe pursuant to a tribal-state compact.

    Dated: November 18, 2021, Washington, DC.
E. Sequoyah Simermeyer,
Chairman.
[FR Doc. 2021-25844 Filed 12-1-21; 8:45 am]
BILLING CODE 7565-01-P