[Federal Register Volume 78, Number 79 (Wednesday, April 24, 2013)]
[Rules and Regulations]
[Pages 24061-24063]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2013-09604]
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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: Final rule.
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SUMMARY: The National Indian Gaming Commission (NIGC or Commission) is
amending its rules regarding technical standards for Class II gaming
systems and equipment to harmonize the charitable gaming exemption
amount in the technical standards with the charitable gaming exemption
amount in its Class II minimum internal control standards.
DATES: The effective date of these regulations is May 24, 2013.
FOR FURTHER INFORMATION CONTACT: Michael Hoenig, Senior Attorney,
National Indian Gaming Commission, 1441 L Street NW., Suite 9100,
Washington, DC 20005. Email: [email protected]; telephone: 202-
632-7003.
SUPPLEMENTARY INFORMATION:
I. Background
The Indian Gaming Regulatory Act (IGRA or the Act), Public Law 100-
497, 25 U.S.C. 2701 et seq., was signed into law on October 17, 1988.
The Act established the Commission and set out a comprehensive
framework for the regulation of gaming on Indian lands. The Act
requires the Commission to ``monitor class II gaming conducted on
Indian lands on a continuing basis'' and to ``promulgate such
regulations and
[[Page 24062]]
guidelines as it deems appropriate to implement'' IGRA. 25 U.S.C.
2706(b)(1), (b)(10).
In 2008, the NIGC published a final rule in the Federal Register
that established technical standards for ensuring the integrity of
electronic Class II games and aids. 73 FR 60508, Oct. 10, 2008. The
technical standards were 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
provided guidance to equipment manufacturers and distributors of Class
II gaming systems. The standards did not classify which games were
Class II games and which games were Class III games.
II. Previous Rulemaking Activity
In 2012, the NIGC published a final rule in the Federal Register
amending its part 547 technical standards to: Change the order of the
first five sections; add definitions and amend existing definitions;
amend requirements and time restrictions for grandfathered Class II
gaming systems; amend the requirements concerning minimum odds for
Class II games; amend standards for test labs; remove references to the
Federal Communications Commission and Underwriters Laboratory; require
a player interface to display a serial number and date of manufacture;
amend requirements concerning approval of downloads to a Class II
gaming system; and to clarify the term ``alternate standard.'' 77 FR
58473, Sept. 21, 2012. In addition, Sec. 547.5(e)(5) of the rule
states that the part does not apply to a charitable gaming operation
provided that, among other requirements, the amount of gross gaming
revenue of the charitable gaming operation does not exceed $1 million.
The rule became effective on October 22, 2012.
At the same time that the NIGC amended and published part 547, it
amended and published rules containing minimum internal control
standards (MICS) for Class II gaming. 77 FR 58708, Sept. 21, 2012.
Similar to the part 547 technical standards, the part 543 MICS exempt
charitable gaming operations that earn less than a set threshold
amount. However, the Commission increased the threshold amount in the
MICS from $1 million to $3 million.
In February 2013, the Commission published a Notice of Proposed
Rulemaking proposing to revise the threshold amount in Sec.
547.5(e)(5) from $1 million to $3 million in order to harmonize the
charitable gaming exemption amounts in the technical standards and the
MICS to ensure that the exemption for a ``charitable gaming operation''
is consistent throughout the Commission's rules (78 FR 11795, Feb. 20,
2013).
III. Review of Public Comments
In response to its Notice of Proposed Rulemaking published on
February 20, 2013, the Commission received the following comments:
547.5 How does a tribal government, TGRA, or tribal gaming operation
comply with this part?
Comment: One commenter commended the current Commission for its
efforts to improve existing regulations and for the diligence with
which it has undertaken its efforts to consult with tribes. The
commenter agrees that the proposed revision is needed in order to match
the charitable gaming exemption thresholds of both the technical
standards and the MICS.
Response: No response is necessary.
Comment: One commenter stated that he was puzzled by the $3 million
charitable gaming exemption amount, and requested clarification on
whether this threshold amount will have an impact on the amount of
Class II gaming revenue fees that are required to be paid to the NIGC.
Response: The Commission states that the $3 million threshold
amount does not impact the amount of Class II gaming revenue fees that
are required to be paid to the NIGC; but instead, merely exempts
charitable gaming operations whose annual gross gaming revenue does not
exceed $3 million from having to abide by the technical standards
contained in part 547. The Commission believes that no further
revisions to these rules are necessary.
Regulatory Matters
Regulatory Flexibility Act
The 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 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 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 rule does not have significant takings
implications. A takings implication assessment is not required.
Civil Justice Reform
In accordance with Executive Order 12988, the Commission has
determined that the rule does not unduly burden the judicial system and
meets the requirements of sections 3(a) and 3(b)(2) of the Order.
National Environmental Policy Act
The Commission has determined that the rule does not constitute a
major federal action significantly affecting the quality of the human
environment and that no detailed statement is required pursuant to the
National Environmental Policy Act of 1969, 42 U.S.C. 4321, et seq.
Paperwork Reduction Act
The information collection requirements contained in this rule were
previously approved by the Office of Management and Budget as required
by the Paperwork Reduction Act, 44 U.S.C. 3501, et seq., and assigned
OMB Control Number 3141-0014. The OMB control number expires on
November 30, 2015.
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 amends 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, revise paragraph (e)(5) to read as follows:
[[Page 24063]]
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.
* * * * *
Dated: April 18, 2013.
Tracie L. Stevens,
Chairwoman.
Daniel J. Little,
Associate Commissioner.
[FR Doc. 2013-09604 Filed 4-23-13; 8:45 am]
BILLING CODE 7565-01-P