[Federal Register Volume 78, Number 34 (Wednesday, February 20, 2013)]
[Proposed Rules]
[Pages 11795-11796]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2013-03670]


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DEPARTMENT OF THE INTERIOR

National Indian Gaming Commission

25 CFR part 547

RIN 3141-AA27


Minimum Technical Standards for Class II Gaming Systems and 
Equipment

AGENCY: National Indian Gaming Commission.

ACTION: Notice of proposed rulemaking.

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SUMMARY: On September 21, 2012, the National Indian Gaming Commission 
(``NIGC'') published a final rule amending its technical standards for 
Class II gaming systems and equipment, and the rule became effective on 
October 22, 2012. This document proposes an amendment to the regulatory 
text of the final rule to harmonize the charitable gaming exemptions in 
the Technical Standards and the Class II Minimum Internal Control 
Standards of NIGC regulations.

DATES: Submit comments on or before April 8, 2013.

ADDRESSES: You may submit comments by any one of the following methods, 
however, please note that comments sent by electronic mail are strongly 
encouraged.
     Email 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: Michael Hoenig, Senior Attorney, 
National Indian Gaming Commission, 1441 L Street NW. Suite 9100 
Washington, DC 20005. Telephone: 202-632-7009; email: 
reg.review@nigc.gov.

SUPPLEMENTARY INFORMATION: 

I. Comments Invited

    Interested parties are invited to participate in this Notice of 
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 NIGC and sets out a comprehensive framework for the 
regulation of gaming on Indian lands. On September 21, 2012, the NIGC 
published a final rule in the Federal Register called Minimum Technical 
Standards for Class II Gaming Systems and Equipment. 77 FR 58473. The 
standards are designed to assist tribal gaming regulatory authorities 
and operators with ensuring the integrity and security of Class II 
gaming, the accountability of Class II gaming revenue, and provide 
guidance to equipment manufacturers and distributors of Class II gaming 
systems.
    On November 18, 2010, the NIGC issued a Notice of Inquiry and 
Notice of Consultation advising the public that the NIGC has endeavored 
to conduct a comprehensive review of its regulations and requesting 
public comment on which 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 
consulting with tribes and reviewing all comments, the NIGC published a 
Notice of Regulatory Review Schedule (NRR) setting out a consultation 
schedule and process for review. 76 FR 18457. Part 547 was included in 
the third regulatory group reviewed pursuant to the NRR.
    Section 547.5(e)(5) of the final rule states that the Part does not 
apply to a charitable gaming operation provided that, among other 
things, the amount of

[[Page 11796]]

gross gaming revenue of the charitable gaming operation does not exceed 
$1,000,000. This Notice of Proposed Rulemaking proposes to amend Sec.  
547.5(e)(5) to change that amount from $1,000,000 to $3,000,000.
    At the same time the NIGC published the Minimum Technical 
Standards, it published Minimum Internal Control Standards for Class II 
Gaming (MICS). 77 FR 58707. Like the Technical Standards, the MICS 
exempt charitable gaming operations that earn less than a set threshold 
amount. The Commission increased that amount in the MICS from 
$1,000,000 to $3,000,000.
    The Commission proposes to amend Sec.  547.5(e)(5) of the Technical 
Standards to harmonize the charitable gaming exemptions in the 
Technical Standards and MICS and ensure that the exemption for a 
``charitable gaming operation'' is consistent throughout the NIGC's 
regulations.

III. 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 proposed rule does not unduly burden the judicial 
system and meets the requirements of Sec.  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 25 CFR part 
547 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.

List of Subjects in 25 CFR Part 547

    Gambling; Indian--Indian lands; Indian--tribal government.

    For the reasons set forth in the preamble, the Commission proposes 
to revise 25 CFR part 547 as follows:

PART 547--MINIMUM TECHNICAL STANDARDS FOR CLASS II GAMING SYSTEMS 
AND EQUIPMENT

0
1. The authority citation for part 547 continues to read as follows:

    Authority: 25 U.S.C. 2706(b).

0
2. In Sec.  547.5 paragraph (e)(5) is revised to read as follows:


Sec.  547.5  How does a tribal government, TGRA, or tribal gaming 
operation comply with this part?

* * * * *
    (e) * * *
    (5) The annual gross gaming revenue of the charitable gaming 
operation does not exceed $3,000,000.
* * * * *

Tracie L. Stevens,
Chairwoman.
Daniel J. Little,
Associate Commissioner.
[FR Doc. 2013-03670 Filed 2-19-13; 8:45 am]
BILLING CODE 7565-01-P