Supporting Statement For 3141-0008 (10-25-2013)

SUPPORTING STATEMENT
FOR RECORDKEEPING AND REPORTING REQUIREMENTS
25 CFR PART 518
A. JUSTIFICATION
1. Explain the circumstances that make the collection of information necessary. Identify
any legal or administrative requirements that necessitate the collection. Attach a copy
of the appropriate section of each statute and regulation mandating or authorizing the
collection of information.
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 National Indian
Gaming Commission (NIGC or Commission) and set out a comprehensive framework for the
regulation of gaming on Indian lands. The Act sets the standards for the regulation of Indian
gaming, including a framework for the issuance of certificates of self-regulation for class II
gaming operations to tribes that meet certain qualifications. Specifically, 25 U.S.C. 2710(c)
authorizes the Commission to issue a certificate of self-regulation if it determines that a tribe has:
(i) conducted its gaming activity in a manner that has resulted in an effective and honest
accounting of all revenues, in a reputation for safe, fair, and honest operation of the activity, and
has been generally free of evidence of criminal or dishonest activity; (ii) adopted and is
implementing adequate systems for the accounting of all revenues from the activity, for the
investigation, licensing, and monitoring of all employees of the gaming activity, and for the
investigation, enforcement, and prosecution of violations of its gaming ordinance and
regulations; and (iii) conducted the operation on a fiscally and economically sound basis. The
Act also authorizes the Commission to “promulgate such regulations and guidelines as it deems
appropriate to implement” IGRA. 25 U.S.C. 2706(b)(10). Part 518 of title 25, Code of Federal
Regulations, implements these statutory requirements.

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25 CFR §§ 518.3(e) and 518.4
Amongst other conditions, in order for a tribe to be eligible to petition the Commission
for a certificate of self-regulation of class II gaming, 25 CFR § 518.3(e) requires a tribe’s gaming
operation(s) and the tribal regulatory body (TRB) to have kept all records needed to support the
petition for self-regulation for the three years immediately preceding the date of the petition
submission.
In addition, 25 CFR § 518.4 requires a tribe petitioning for a certificate of self-regulation
to submit the following to the Commission, accompanied by supporting documentation: (i) two
copies of a petition for self-regulation approved by the tribal governing body and certified as
authentic by an authorized tribal official; (ii) a description of how the tribe meets the eligibility
criteria in § 518.3; (iii) a brief history of each gaming operation, including the opening dates and
periods of voluntary or involuntary closure(s); (iv) a TRB organizational chart; (v) a brief
description of the criteria that individuals must meet before being eligible for employment as a
tribal regulator; (vi) a brief description of the process by which the TRB is funded, and the
funding level for the three years immediately preceding the date of the petition; (vii) a list of the
current regulators and TRB employees, their complete resumes, their titles, the dates that they
began employment, and if serving limited terms, the expiration date of such terms; (viii) a brief
description of the accounting system(s) at the gaming operation that tracks the flow of the
gaming revenues; (ix) a list of the gaming activity internal controls at the gaming operation(s);
(x) a description of the recordkeeping system(s) for all investigations, enforcement actions, and
prosecutions of violations of the tribal gaming ordinance or regulations, for the three-year period
immediately preceding the date of the petition; and (xi) the tribe’s current set of gaming
regulations, if not included in the approved tribal gaming ordinance.

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25 CFR § 518.10
Section 518.10 requires each Indian gaming tribe that has been issued a certificate of selfregulation to submit to the Commission the following information by April 15th of each year
following the first year of self-regulation, or within 120 days after the end of each gaming
operation’s fiscal year: (i) an annual independent audit; and (ii) a complete resume for all TRB
employees hired and licensed by the tribe subsequent to its receipt of a certificate of selfregulation.
2. Indicate how, by whom, and for what purpose the information is to be used. Except for
a new collection, indicate the actual use the agency has made of the information
received from the current collection.
The Commission uses the records maintained and the information submitted with a
tribe’s petition to determine whether a tribe has met the statutory criteria for the issuance of a
certificate of self-regulation. In addition, the Commission uses the annual independent audits and
the resumes for all TRB employees in order to monitor a tribe’s ability to continue to meet the
criteria for maintaining its certificate of self-regulation.
3. Describe whether, and to what extent, the collection of information involves the use of
automated, electronic, mechanical, or other technological collection techniques or other
forms of information technology, e.g., permitting electronic submission of responses,
and the basis for the decision for adopting this means of collection. Also describe any
consideration of using information technology to reduce burden.
While tribes must submit two copies of their petitions in paper form, Commission
regulations allow them to maintain and/or submit other types of information to the Commission
by compatible automated, electronic, and/or mechanical means, including e-mail.
4. Describe efforts to identify duplication. Show specifically why any similar information
already available cannot be used or modified for use for the purposes described in Item
2 above.

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The information required to be maintained and/or submitted to the Commission is unique
to each Indian tribe and each gaming operation. No similar information pertaining to gaming on
Indian lands is collected by the Commission or by any other federal agencies.
5. If the collection of information impacts small businesses or other small entities (Item 5
of OMB Form 83-I), describe any methods used to minimize burden.
Not applicable. Nonetheless, Commission regulations require operations to submit the
minimum amount of information that the Commission requires to fulfill its statutory
responsibilities.
6. Describe the consequence to Federal program or policy activities if the collection is not
conducted or is conducted less frequently, as well as any technical or legal obstacles to
reducing burden.
Amongst other purposes, Congress enacted IGRA and established the Commission to
ensure that:


the industry is shielded from organized crime and other corrupting influences;



the tribe is the primary beneficiary of its gaming revenue; and



fairness and honesty are the hallmarks of Indian gaming.

However, Congress also recognizes that Indian tribes are sovereign entities, capable of selfgovernment. Thus, the reason that IGRA provides a framework for the issuance of certificates of
self-regulation to tribes that meet certain conditions and if the Commission makes certain
determinations that a tribe has: (i) conducted its gaming activity in a manner that has resulted in
an effective and honest accounting of all revenues, in a reputation for safe, fair, and honest
operation of the activity, and has been generally free of evidence of criminal or dishonest
activity; (ii) adopted and is implementing adequate systems for the accounting of all revenues
from the activity, for the investigation, licensing, and monitoring of all employees of the gaming
activity, and for the investigation, enforcement and prosecution of violations of its gaming

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ordinance and regulations; and (iii) conducted the operation on a fiscally and economically
sound basis.
Petitioning the Commission for a certificate of self-regulation is voluntary. Once a
certificate of self-regulation has been issued, however, the submission of the annual independent
audits and resumes become mandatory. If these information collections are not conducted, the
Commission will not be able to effectively determine a tribe’s ability to self-regulate and thus
not be able to fulfill its statutory duty to issue certificates of self-regulation to tribes that qualify,
or to ascertain a tribe’s continued ability to maintain a certificate of self-regulation.
7. Explain any special circumstances that would cause an information collection to be
conducted in a manner:
 requiring respondents to report information to the agency more often than
quarterly;
 requiring respondents to prepare a written response to a collection of information in
fewer than 30 days after receipt of it;
 requiring respondents to submit more than an original and two copies of any
document;
 requiring respondents to retain records, other than health, medical, government
contract, grant-in-aid, or tax records, for more than three years;
 in connection with a statistical survey, that is not designed to produce valid and
reliable results that can be generalized to the universe of study;
 requiring the use of a statistical data classification that has not been reviewed and
approved by OMB;
 that includes a pledge of confidentiality that is not supported by authority
established in statute or regulation, that is not supported by disclosure and data
security policies that are consistent with the pledge, or which unnecessarily impedes
sharing of data with other agencies for compatible confidential use; or
 requiring respondents to submit proprietary trade secrets, or other confidential
information unless the agency can demonstrate that it has instituted procedures to
protect the information's confidentiality to the extent permitted by law.
Not applicable.
8. If applicable, provide a copy and identify the date and page number of publication in
the Federal Register of the agency's notice, required by 5 CFR 1320.8(d), soliciting
comments on the information collection prior to submission to OMB. Summarize public
comments received in response to that notice and describe actions taken by the agency
in response to these comments. Specifically address comments received on cost and
hour burden.
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Describe efforts to consult with persons outside the agency to obtain their views on the
availability of data, frequency of collection, the clarity of instructions and
recordkeeping, disclosure, or reporting format (if any), and on the data elements to be
recorded, disclosed, or reported.
Consultation with representatives of those from whom information is to be obtained or
those who must compile records should occur at least once every 3 years - even if the
collection of information activity is the same as in prior periods. There may be
circumstances that may preclude consultation in a specific situation. These
circumstances should be explained.
On July 8, 2013, a notice containing the information collection renewals was published in
the Federal Register allowing the public an opportunity to comment on the requirements. (78 FR
40766, July 8, 2013). The public comment period closed on September 6, 2013. No public
comments were received.
The Commission contacted the only two tribes that have received certificates of selfregulation since the year 2000, and laid out the recordkeeping and submission requirements
contained in its revised self-regulation rules, but did not provide its own estimates to the tribes.
The Commission asked the tribal gaming commissions and/or tribal gaming operators to provide
annual hourly estimates required to perform the tasks, as well as any cost estimates. The average
burden hours per response and average annual costs in this information collection were provided
by these two tribes. The Commission has adjusted the estimates accordingly.
9. Explain any decision to provide any payment or gift to respondents, other than
reenumeration of contractors or grantees.
Not applicable. The NIGC does not provide any payment or gift to respondents.
10. Describe any assurance of confidentiality provided to respondents and the basis for the
assurance in statute, regulation, or agency policy.
The Act requires the Commission to keep confidential trade secrets, privileged or
confidential, commercial or financial information, or information related to ongoing law
enforcement investigations. Section 2716 of title 25, United States Code, removes from the

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Commission any discretion it otherwise would have to disclose information that falls within
FOIA exemptions 4 and 7, and requires the Commission to disclose such information only to
other law enforcement agencies for law enforcement purposes.
In addition, pursuant to the Privacy Act, the Commission has established a system of
records for maintaining and protecting personal information of individuals received in
connection with a self-regulation petition. The Privacy Act prevents the Commission from
revealing such personal information.
11. Provide additional justification for any questions of a sensitive nature, such as sexual
behavior and attitudes, religious beliefs, and other matters that are commonly
considered private. This justification should include the reasons why the agency
considers the questions necessary, the specific uses to be made of the information, the
explanation to be given to persons from whom the information is requested, and any
steps to be taken to obtain their consent.
Not applicable. No sensitive questions are asked.
12. Provide estimates of the hour burden of the collection of information. The statement
should:
 Indicate the number of respondents, frequency of response, annual hour burden,
and an explanation of how the burden was estimated. Unless directed to do so,
agencies should not conduct special surveys to obtain information on which to base
hour burden estimates. Consultation with a sample (fewer than 10) of potential
respondents is desirable. If the hour burden on respondents is expected to vary
widely because of differences in activity, size, or complexity, show the range of
estimated hour burden, and explain the reasons for the variance. Generally,
estimates should not include burden hours for customary and usual business
practices.
 If this request for approval covers more than one form, provide separate hour
burden estimates for each form and aggregate the hour burdens in Item 13 of OMB
Form 83-I.
 Provide estimates of annualized cost to respondents for the hour burdens for
collections of information, identifying and using appropriate wage rate categories.
The cost of contracting out or paying outside parties for information collection
activities should not be included here. Instead, this cost should be included in Item
13.

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The table below shows the Commission’s estimated hourly burdens and the hourly cost
burdens for respondents. The average hours per response and average hourly rates were provided
by the tribal gaming commissions and/or tribal gaming operators.
ESTIMATED ANNUAL BURDEN HOUR TOTALS

NUMBER OF
CFR CITE/
ANNUAL
COLLECTION RESPONDENTS

FREQUENCY
AVERAGE
OF
TOTAL
HOURS
AVERAGE
RESPONSES
ANNUAL
PER
HOURLY TOTAL
PER YEAR
RESPONSES RESPONSE
RATE
HOURS

518.3(e);
518.4
518.10(a)
518.10(b)

2

1

2

1,940

$18

2
4

1
1

2
4

102.5
0.75

$39
$34

TOTAL

8

8

TOTAL
WAGES

3,880 $69,840
205
3

$7,995
$1,530

4,088 $77,937

13. Provide an estimate for the total annual cost burden to respondents or recordkeepers
resulting from the collection of information. (Do not include the cost of any hour
burden shown in Items 12 and 14).
 The cost estimate should be split into two components: (a) a total capital and startup cost component (annualized over its expected useful life) and (b) a total operation
and maintenance and purchase of services component. The estimates should take
into account costs associated with generating, maintaining, and disclosing or
providing the information. Include descriptions of methods used to estimate major
cost factors including system and technology acquisition, expected useful life of
capital equipment, the discount rate(s), and the time period over which costs will be
incurred. Capital and start-up costs include, among other items, preparations for
collecting information such as purchasing computers and software; monitoring,
sampling, drilling and testing equipment; and record storage facilities.
 If cost estimates are expected to vary widely, agencies should present ranges of cost
burdens and explain the reasons for the variance. The cost of purchasing or
contracting out information collections services should be a part of this cost burden
estimate. In developing cost burden estimates, agencies may consult with a sample of
respondents (fewer than 10), utilize the 60-day pre-OMB submission public
comment process and use existing economic or regulatory impact analysis associated
with the rulemaking containing the information collection, as appropriate.
 Generally, estimates should not include purchases of equipment or services, or
portions thereof, made: (1) prior to October 1, 1995, (2) to achieve regulatory
compliance with requirements not associated with the information collection, (3) for
reasons other than to provide information or keep records for the government, or
(4) as part of customary and usual business or private practices.

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The majority of the dollar cost for this information collection ($172,150) is the estimated
total amount that the tribes will pay to engage independent CPA firms to provide an annual audit
of the financial statements of each of their class II and class III gaming operation. The remaining,
unspecified total costs were based on tribal feedback.
ESTIMATED ANNUAL COST TOTALS

CFR CITE/
COLLECTION

FREQUENCY
NUMBER OF
OF
TOTAL
ANNUAL
RESPONSE
ANNUAL
RESPONDENTS PER YEAR
RESPONSES

518.3(e); 518.4
518.10(a)
518.10(b)

2
2
4

TOTAL

8

1
1
1

AVERAGE
ANNUAL
COSTS

2
2
4

TOTAL
COSTS

$0
$86,075
$75

8

$0
$172,150
$300
$172,450

14. Provide estimates of annualized costs to the Federal government. Also, provide a
description of the method used to estimate cost, which should include quantification of
hours, operational expenses (such as equipment, overhead, printing, and support staff),
and any other expense that would not have been incurred without this collection of
information. Agencies may also aggregate cost estimates from Items 12, 13, and 14 in a
single table.
The Commission determined its cost and burden hour estimates, inclusive of operational
expenses, based on the workflows of the agency, and the functions specific to the receipt,
recordation, and analysis of the submissions. As a general matter, the cost rate was based upon
the hourly rate of personnel assigned to task. Support services are included in cost estimates.
ESTIMATED ANNUAL AGENCY BURDEN TOTALS
NUMBER OF
FREQUENCY
TOTAL
REVIEW
CFR CITE/
ANNUAL
OF RESPONSE ANNUAL HOURS PER TOTAL
COLLECTION RESPONDENTS
PER YEAR
RESPONSES RESPONSE HOURS

518.3(e);
518.4
518.10(a)
518.10(b)

2
2
4

TOTAL

8

1
1
1

2
2
4
8
9

216
48
1

432
96
4
532

HOURLY
RATE

$60
$69
$50

TOTAL
AGENCY
COSTS

$25,920
$6,624
$200
$32,744

15. Explain the reasons for any program changes or adjustments reported in Items 13 or 14
of the OMB Form 83-I.
The Commission has made several program changes:
(i)

with regard to §§ 518.3(e) and 518.4, because no other tribes had received certificates
of self-regulation since 2000, the Commission did not previously expect any more
tribes to submit petitions for self-regulation. Thus, the Commission estimated zero (0)
burden hours in its previous approved information collection. However, the
Commission recently amended part 518 with the revised regulations effective as of
September 1, 2013. As a result, the Commission expects that the revised regulations
will cause other tribes to petition the Commission for certificates of self-regulation.
This program change has resulted in an increase in the number of estimated annual
responses (by 2 more annual responses), and an increase in the number of estimated
burden hours (by 3880 more hours) compared to the previous total estimate;

(ii)

with regard to § 518.10(a), the Commission previously included the burden estimates
and costs for self-regulated tribes’ requirement to submit an annual independent audit
under another approved information collection (3141-0001). The Commission has
decided to transfer those burden estimates and costs into the current request. This
program change has resulted in an increase in the number of estimated responses
annually (by 2 more annual responses), an increase in the number of estimated burden
hours (by 205 more hours) and in an increase in the cost estimate ($172,150 total to
hire outside certified public accounting firms to conduct independent audits)
compared to the previous total estimate; and

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(iii)

with regard to § 518.10(b), because the Commission expects that at least two more
tribes will take advantage of the revised part 518 and will be granted certificates of
self-regulation, the Commission has increased: (i) the estimated number of
respondents and annual responses (from 2 to 4); and (ii) the cost estimate (from $0 to
$300). In addition, because revised part 518 is limiting the submission of resumes to
those of tribal regulatory body employees only, and because tribes are no longer
required to submit annual statements on the usage of their net gaming revenues, the
Commission has decreased the number of estimated burden hours (from 100 to 3).

16. For collections of information whose results will be published, outline plans for
tabulation and publication. Address any complex analytical techniques that will be
used. Provide the time schedule for the entire project, including beginning and ending
dates of the collection of information, completion of report, publication dates, and other
actions.
These are ongoing information collections with no ending date and no plans for
publication.
17. If seeking approval to not display the expiration date for OMB approval of the
information collection, explain the reasons that display would be inappropriate.
Not applicable.
18. Explain each exception to the certification statement identified in Item 19,
“Certification for Paperwork Reduction Act Submissions,” of OMB Form 83-I.
Not applicable. The Commission certifies compliance with 5 CFR §1320.9.
B. COLLECTIONS OF INFORMATION EMPLOYING STATISTICAL METHODS
This section is not applicable. Statistical methods are not being employed.

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