3141-0004 Supporting Statement (9-18-2015)

SUPPORTING STATEMENT
FOR RECORDKEEPING AND REPORTING REQUIREMENTS
25 CFR PARTS 533, 535, and 537
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 standards for the regulation of Indian gaming,
including the requirement that the NIGC Chairman review and approve all management
contracts for the operation and management of class II and/or class III gaming activities, and to
conduct background investigations of persons with direct or indirect financial interests in, and
management responsibility for, management contracts. 25 U.S.C. 2710, 2711. These
requirements are intended to ensure that tribes are the primary beneficiaries of their gaming
operations and to protect such gaming as a means of generating tribal revenue. The Commission
is authorized to “promulgate such regulations and guidelines as it deems appropriate to
implement” IGRA. 25 U.S.C. 2706(b)(10). The Commission has promulgated parts 533, 535,
and 537 of title 25, Code of Federal Regulations, to implement these statutory requirements.
25 CFR § 533.3
Section 533.3 of title 25, Code of Federal Regulations, requires a tribe or management
contractor to submit a management contract for review within 60 days of execution, and to
submit the following information to the Commission: (i) a contract containing the original
signatures of an authorized tribal official and the management contractor, as well as a

representation that the contract as submitted is the entirety of the agreement amongst the parties;
(ii) a letter signed by the tribal chairman setting out the authority of an authorized tribal official
to act for the tribe concerning the management contract, as well as copies of documents
evidencing this authority; (iii) a list of all persons and entities with a direct or indirect financial
interest in the contract or with management responsibility for the contract; (iv) for new contracts
and new operations, a three-year business plan that sets forth the parties’ goals, objectives,
budgets, financial plans, and related matters; for new contracts for existing operations, the same
three-year business plan but must also include income statements and sources, and uses-of-funds
statements for the previous three years; (v) if applicable, a justification for a contract term limit
in excess of five years, but not exceeding seven years; (vi) if applicable, a justification for a fee
in excess of 30 percent, but not exceeding 40 percent; and (vii) a legal description for the site on
which the gaming operation to be managed is or will be located.
25 CFR §§ 535.1-535.2
Section 535.1 requires a tribe or a management contractor to submit an amendment or
modification to a management contract within 30 days of execution, and to submit the following
information to the Commission: (i) an amendment containing the original signatures of an
authorized tribal official and the management contractor; (ii) a letter signed by the tribal
chairman setting out the authority of an authorized tribal official to act for the tribe concerning
the management contract, as well as copies of documents evidencing this authority; (iii) a list of
all persons and entities with a direct or indirect financial interest in the contract or with
management responsibility for the contract, including any changes in such persons or entities;
(iv) if applicable, a justification for a term limit in excess of five years, but not exceeding seven

years; and (v) if applicable, a justification for a management fee in excess of 30 percent, but not
exceeding 40 percent.
Section 535.2 requires a tribe or management contractor to submit, upon execution, the
assignment by a management contractor of its rights under an approved management contract.
25 CFR § 537.1
In order for the Commission to conduct background investigations on all persons and
entities with a direct or indirect financial interest in the contract or with management
responsibility for the contract, § 537.1 requires a management contractor to submit the following
information to the Commission for each natural person: (i) the full name, other names used (oral
or written), social security number(s), birth date, place of birth, citizenship, and gender; (ii) a
current photograph and driver’s license number; (iii) business and employment positions held,
and business and residence addresses currently and for the previous ten years; (iv) the names and
current addresses of at least three personal references; (v) current business and residence
telephone numbers; (vi) a description of any existing and previous business relationships with
Indian tribes, including ownership interests; (vii) a description of any existing and previous
business relationships with the gaming industry generally, including ownership interests; (viii)
the name and address of any licensing or regulatory agency with which the person has filed an
application for a license or permit relating to gaming, whether or not such license or permit was
granted; (ix) for each gaming offense and for each felony for which there is an ongoing
prosecution or a conviction, the name and address of the court involved, the charge, and the dates
of the charge and of the disposition; (x) for each misdemeanor conviction or ongoing
misdemeanor prosecution (excluding minor traffic violations) within ten years of the date of the
application, the name and address of the court involved, and the dates of the prosecution and the

disposition; (xi) a complete financial statement showing all sources of income for the previous
three years, and assets, liabilities, and net worth as of the date of the submission; (xii) for each
criminal charge (excluding minor traffic charges) regardless of whether or not it resulted in a
conviction, if such criminal charge is within 10 years of the date of the application and is not
otherwise listed, the name and address of the court involved, the criminal charge, and the dates
of the charge and the disposition; (xiii) fingerprints taken by an appropriate federal, state, or
tribal law enforcement authority; (xiv) responses to written or oral questions propounded by the
Chairman; and (xv) signed Privacy Act and false statement notices.
Section 537.1 also requires a management contractor to submit the following information
to the Commission for each entity: (i) a list of the following persons: each of the ten largest
beneficiaries and the trustees when the entity is a trust; each of the ten largest partners when the
entity is a partnership; each person who is a director or who is one of the ten largest holders of
the issued and outstanding stock alone or in combination with another stockholder who is a
spouse, parent, child or sibling when the entity is a corporation; and for any other type of entity,
the ten largest owners of that entity alone or in combination with any other owner who is a
spouse, parent, child, or sibling, and any person with management responsibility for that entity;
(ii) for each person in the aforementioned list, all of the background information that § 537.1
requires a management contractor to submit for a natural person; (iii) copies of documents
establishing the existence of the entity, such as the partnership agreement, the trust agreement, or
the articles of incorporation; (iv) copies of documents designating the person who is charged
with acting on behalf of the entity; (v) copies of bylaws or other documents that provide the dayto-day operating rules for the organization; (vi) a description of any existing and previous
business relationships with Indian tribes, including ownership interests in those businesses; (vii)

a description of any existing and previous business relationships with the gaming industry
generally, including ownership interest in those businesses; (viii) the name and address of any
licensing or regulatory agency with which the entity has filed an application for a license or
permit relating to gaming, whether or not such license or permit was granted; (ix) for each
gaming offense and for each felony for which there is an ongoing prosecution or a conviction,
the name and address of the court involved, the charge, and the dates of the charge and
disposition; (x) for each misdemeanor conviction or ongoing misdemeanor prosecution within
ten years of the date of the application, the name and address of the court involved, and the dates
of the prosecution and disposition; (xi) complete financial statements for the previous three fiscal
years; (xii) for each criminal charge (excluding minor traffic charges) whether or not there is a
conviction, if such criminal charge is within 10 years of the date of the application and is not
otherwise listed, the criminal charge, the name and address of the court involved and the dates of
the charge and disposition; (xiii) responses to written or oral questions propounded by the
Chairman; and (xiv) a signed false statement notice.
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 requires tribes and/or management contractors to submit the
information identified in Item 1 above in order for the Chairman to determine whether a
management contract, or amendments and modifications thereto, meets IGRA’s statutory
requirements for approval. In addition, the requested background information will enable the
Commission to perform background investigations in order for the Chairman to determine
whether the individuals or entities directly or indirectly involved in the financial or management
aspects of the gaming operation meet the suitability criteria established in IGRA. These

requirements are intended to ensure that tribes are the primary beneficiaries of their gaming
operations and to protect such gaming as a means of generating tribal revenue.
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.

Under NIGC regulations, tribes and/or management contractors can submit information
via compatible automated, electronic, and/or mechanical means. However, tribes typically
submit information in paper form and follow up initial submissions with electronic revisions. In
addition, more management contractors are using portable document format (pdf) fillable forms
when submitting background information, resulting in less time to compile the information.
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.

The required information is unique to each Indian tribe and/or management contractor.
No similar information pertaining to gaming on Indian lands is collected by the Commission or
by 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.
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.

The Commission requires tribes and/or management contractors to submit the
information identified in Item 1 above in order for the Chairman to determine whether a
management contract, or amendments and modifications thereto, meets IGRA’s statutory

requirements for approval. In addition, the requested background information enables the
Commission to perform background investigations in order for the Chairman to determine
whether the individuals or entities directly or indirectly involved in the financial or management
aspects of the gaming operation meet the suitability criteria established in IGRA. These statutory
requirements are intended to ensure that tribes are the primary beneficiaries of their gaming
operations and to protect such gaming as a means of generating tribal revenue.
The Commission imposes these collection requirements as infrequently as possible. The
submission requirements apply only when a tribe or management contractor wishes to obtain the
Chairman’s approval of a management contract, and when amendments or modifications are
made to existing approved contracts. With regard to the background information of individual or
entities, the submission requirements apply only when changes are made in persons or entities
with an indirect or direct financial and management interests in an Indian gaming operation. The
Commission would be unable to effectively monitor Indian gaming operations as required by
IGRA if the information collection were not conducted as described.
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.

The Act requires the Commission to ensure that tribes are the primary beneficiaries of
their gaming operations and to protect such gaming as a means of generating tribal revenue. 25
U.S.C. 2703. To that end, the Commission must conduct background investigations into
individuals and entities directly or indirectly involved in the financial or management aspects of
the gaming operation. This requires the submission of information by these individuals or entities
that can be considered privileged or confidential in nature, including business or commercial
records, financial and bank statements, proprietary secrets, or information related to ongoing law
enforcement investigations. The Act removes, from the Commission, any discretion that it would
otherwise have to disclose such 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. 25 U.S.C. 2716.
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.
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 June 5, 2015, a 60-day notice containing the information collection requirements was
published in the Federal Register allowing the public an opportunity to comment on the
requirements. See 80 FR 32176 (June 5, 2015). The public comment period closed on August 4,
2015. No public comments were received.
In addition, the Commission surveyed tribal gaming operators and/or management
contractors regarding the submission requirements contained in its regulations. The Commission
asked the tribal gaming operators and/or management contractors to provide annual hourly
estimates required to perform each of the activities, as well as any cost estimates. The
Commission has adjusted its previous estimates accordingly.
9.

Explain any decision to provide any payment or gift to respondents, other
than remuneration of contractors or grantees.

Not applicable. The Commission 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 mandates the Commission to preserve any and all information received pursuant
to IGRA as confidential and removes from the Commission any discretion that it would
otherwise have to disclose any information that falls within FOIA exemptions 4 and 7. 25 U.S.C.
2716(a). The Commission may disclose such information only to other law enforcement agencies
for law enforcement purposes. 25 U.S.C. 2716(b).
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.

The Commission tracks the number of management contracts, amendments/modifications
to management contracts, assignments of rights to management contracts, and background
investigation submissions for individuals and entities, that it receives per calendar year. To arrive
at the estimates below, the Commission averaged the number of submissions that it received
from calendar years 2012 – 2014 in order to determine the total estimated number of annual
respondents and total estimated annual responses. As mentioned in Item 8 above, the
Commission consulted with a few tribal gaming operators and/or management contractors to
gather the burden estimates for these information collection activities.
The Act requires a potential management contractor to pay a fee to cover the
Commission’s costs necessary to perform background investigations on the individuals or
entities directly or indirectly involved in the financial or management aspects of the gaming
operation. 25 U.S.C. 2711(i). Each investigation costs an average of $20,000 for each entity and
each individual. The dollar cost for this information collection ($500,000) is the estimated total

amount that the management contractors are statutorily required to pay to the NIGC in order for
the Commission to perform these background investigations.
ESTIMATED ANNUAL BURDEN TOTALS
CFR CITE/
COLLECTION

533.3
535.1
535.2
537.1
TOTAL
13.

NUMBER OF
ANNUAL
RESPONDENTS

FREQUENCY OF
RESPONSES PER
YEAR

TOTAL
ANNUAL
RESPONSES

AVERAGE
HOURS PER
RESPONSE

3
8
1
8

Varies
Varies
Varies
Varies

3
14
1
25

14
10
10
20

20

43

TOTAL
HOURS

TOTAL
ANNUAL
COST

42
140
10
500

$0
$0
$0
$500,000

692

$500,000

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 start-up 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 10/95 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.

All estimated costs and hour burdens are shown in Item 12.
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 AGENCY ANNUAL BURDEN TOTALS

NUMBER OF
CFR CITE/
ANNUAL
COLLECTION RESPONDENTS

FREQUENCY
OF
RESPONSES
PER YEAR

TOTAL
ANNUAL
RESPONSES

REVIEW
HOURS
PER
RESPONSE

TOTAL
HOURS

HOURLY
RATE

535.1

3
8

Varies
Varies

3
14

280
66

840
924

$90
$90

$75,600
$83,160

535.2

1

Varies

1

60

60

$90

$5,400

537.1

8

Varies

25

210

5,250

$90

$0

533.3

TOTAL
15.

20

43

7,074

TOTAL
AGENCY
COST

$164,160

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 one program change. The Commission previously included
burden estimates for certain submission requirements (pursuant to former 25 CFR part 539), but
has determined that, under 44 U.S.C. 3518(c)(1)(ii), these estimates were erroneously included
because tribes, management contractors, and/or persons are not required to make these
submissions unless and until the Commission has begun an administrative appeal action with
regard to a specific management contract, or amendment thereto. This program change impacted

the Commission’s estimated burden totals, as it decreased the estimated annual responses by one
response, and the estimated burden hours by 40 hours.
The Commission has made the following adjustments to its estimated burdens:
(a)

the Commission has decreased the number of estimated annual responses from 183 to 43.
This current estimate is based on the annual average number of submissions to the
Commission for the past three years, after a review of the Commission’s own records.
The Commission believes that the large decrease in estimated annual responses is marketdriven. A tribe and/or a management contractor does not have to make any submissions
unless they enter into a new management contract or modify an existing contract, and/or
there is a change in entities or individuals having a direct or indirect financial interest or
management responsibility in an existing management contract. When fewer tribes enter
into new management contracts or amend fewer approved contracts, the result is that
there are fewer management contract-related submissions to the Commission;

(b)

the Commission has decreased the number of estimated annual burden hours from 3,840
to 692. The Commission believes that the large decrease in estimated annual burden
hours is market-driven, resulting from fewer management contract-related submissions.
When there are fewer submissions, there are fewer burden hours required to make those
submissions; and

(c)

the Commission has increased the estimated annual cost burden from $0 to
$500,000. The Commission believes that the large increase in annual cost burden is due
to estimation errors in the previous request for renewal. While management contractors
have always paid a fee to the NIGC to cover the Commission’s costs necessary to
perform background investigations on the individuals or entities directly or indirectly

involved in the financial or management aspects of a gaming operation, those costs were
inadvertently omitted in 2012 (when the previous burden estimates were approved).
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.

This is an ongoing information collection 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 NIGC certifies compliance with 5 CFR § 1320.9.
B.

Collection of Information Employing Statistical Methods.
This section is not applicable. Statistical methods are not employed.