3141-0007 Supporting Statement (10-16-15)

SUPPORTING STATEMENT
FOR RECORDKEEPING AND REPORTING REQUIREMENT
25 CFR PART 514
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 Indian tribes that conduct class II and/or class III gaming activities
must pay annual fees to the Commission on the basis of their respective assessable gross gaming
revenues, using rates established by the Commission. 25 U.S.C. 2717. These fees are used to
fund the Commission’s performance of its statutory duties. 25 U.S.C. 2717a. 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 part 514 of title 25, Code of
Federal Regulations, to implement these statutory requirements.
25 CFR § 514.6
Section 514.6 of title 25, Code of Federal Regulations, requires a tribe to submit quarterly
fee statements (worksheets) showing its assessable gross gaming revenues from the previous
fiscal year in order to support the computation of fees paid by each gaming operation.
25 CFR § 514.7
Section 514.7 requires a tribe to submit a notice within 30 days after a gaming operation
changes its fiscal year. Because a tribe’s quarterly fee payments are based on a gaming

operation’s assessable gross gaming revenues from the previous fiscal year, the Commission
must have up-to-date information on a gaming operation’s current fiscal year.
25 CFR § 514.15
Section 514.15 allows a tribe to submit fingerprint cards to the Commission for
processing by the Federal Bureau of Investigation (FBI), along with a fee payment to cover the
NIGC’s and FBI’s administrative costs to process such fingerprint cards on behalf of the tribes.
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 quarterly fee worksheets furnished by each class II and/or class III gaming operation
details the components of assessable gross gaming revenues – money wagered, prizes awarded
for each type of game, admission fees, and allowance for capital expenditures. This information
is used by the Commission to set and adjust fee rates so that the total fees assessed each year
meet the Commission’s funding needs. The quarterly fee worksheets support the computation of
fees paid by each gaming operation.
Quarterly fee payments paid by each gaming operation are based on that gaming
operation’s assessable gross gaming revenues from the previous fiscal year. If a gaming
operation changes its fiscal year, the Commission must have up-to-date information on that
gaming operation’s fiscal year in order to determine the computation of fees that are received
from it. A notice submission after a gaming operation has changed its fiscal year meets this need.
The voluntary submission of fingerprint cards to the Commission allows a tribe to
conduct statutorily mandated background investigations on applicants for key employee and
primary management official (PMO) positions. Pursuant to an agreement with the FBI, tribes
submit fingerprint cards to the NIGC and the NIGC forwards them to the FBI for criminal

background checks. The result of the FBI’s review is then communicated to the NIGC, who
conveys the results to the tribe that submitted the fingerprint cards for processing. The
information is used by the tribe or tribal gaming regulatory authority (TGRA) in deciding
whether to grant a gaming license to an applicant for a key employee or PMO position. The Act
does not require the NIGC to process fingerprints cards and not all tribes utilize the service. The
service is charged as a separate fee only to those tribes that utilize the NIGC’s fingerprint card
processing service.
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 TGRAs can submit information via compatible
automated, electronic, and/or mechanical means. The majority of fingerprint card submissions
are sent electronically to the NIGC.
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 gaming operation. 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 quarterly fee worksheets are used to verify the computation of fees paid by each
gaming operation. The failure to collect this information would prevent the Commission from
making timely adjustments to its fee rates, and could result in depriving the Commission from
having the funding resources necessary for it to carry out its statutory duties.
Each tribe is required by IGRA to perform a background investigation of any applicant
for a key employee or PMO position (including a criminal history check) before granting a
gaming license. Commission regulations further require that the criminal history check include a
check of criminal history records maintained by the FBI. The NIGC processes fingerprint cards
for tribes as a service of which tribal gaming operations can voluntarily take advantage. Tribes
are not required to submit fingerprint cards to the Commission, but do so voluntarily.
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.

Commission regulations require the submission of fee worksheets on a quarterly basis,
and the submission of fiscal year change notices and fingerprint cards as needed, based on a
tribe’s own actions.
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, Commission regulations require tribes to submit their assessable gross
gaming revenue numbers, which the Commission treats as confidential information. The Act
requires tribes to conduct background investigations of applicants for key employee and PMO
positions. The Commission and the FBI offer this fingerprint card processing service to tribes to
facilitate a background investigation into an individual’s criminal history. This requires the
submission of information (fingerprints) that can be considered privileged or confidential in
nature. 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 TGRAs regarding
the submission requirements contained in its regulations. The Commission asked the tribal
gaming operators and/or TGRAs 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 gifts 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 quarterly fee worksheets, fiscal year change
notices, and fingerprint card submissions 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 tribal gaming operators
and/or TGRAs to gather the burden estimates for these information collection activities. Because
the estimates provided by the tribal gaming operators and/or TGRAs varied (sometimes
dramatically), the Commission averaged the estimates received only after dropping the highest
and lowest estimates for each aspect of the information collection.
Commission regulations require tribes to pay a fee to process fingerprint cards on behalf
of the tribes. The NIGC currently charges a $21 fee per fingerprint card that covers the

processing fee charged by the FBI and the administrative costs incurred by the Commission. The
majority of the dollar cost for this information collection ($1,462,377) is the estimated total
amount that the tribes are required to pay to the NIGC in order for the FBI to process these
fingerprint cards. The remaining, unspecified costs were provided by the tribes.
ESTIMATED ANNUAL BURDEN TOTALS
CFR CITE/
COLLECTION

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

514.6
514.7
514.15

434
2
215

TOTAL

651

13.

4
Varies
Varies

1,736
2
69,637
71,375

2.0
1.0
0.5

TOTAL
HOURS

TOTAL
ANNUAL
COST

3,472
2
34,818.5

$5,208
$0
$1,462,377

38,292.5

$1,467,585

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
REVIEW
OF
TOTAL
HOURS
RESPONSES
ANNUAL
PER
PER YEAR
RESPONSES RESPONSE

TOTAL
HOURS

HOURLY
RATE

TOTAL
AGENCY
COST

514.6
514.7

434
2

4
Varies

1,736
2

2.0
0.5

3,472
1

$37
$37

$128,464
$37

514.15

215

Varies

69,637

0.1

6,964

$24

$0

TOTAL

651

71,375

10,437

$128,501

The processing of fingerprint cards costs the federal government $0. Although it takes an
agency employee 0.1 hours to process each card at $24 per hour, this cost is recouped by the
Commission through the fee charged to the tribe for processing each fingerprint card.
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 one program change. Since 2012 (when the previous burden
estimates were approved), the Commission has amended its regulations to require a tribe to
submit a notice within 30 days after a gaming operation changes its fiscal year. This program

change, however, did not significantly impact the Commission’s estimated burdens, as it only
increased the estimated annual responses by two responses, and the estimated burden hours by
two hours.
The Commission has made the following adjustments to its estimated burdens:
(a)

the Commission has increased the number of estimated annual responses from 66,200 to
71,375. This current estimate is based on the average number of annual submissions to
the Commission for the past three years, after a review of the Commission’s own records.
The Commission believes that the large increase in estimated annual responses is marketdriven. Since 2012, Indian gaming revenues in the U.S. have increased by approximately
$0.6 billion. This growth in the Indian gaming industry has resulted in more gaming
facilities opening throughout the country (e.g., the number of respondents for § 514.6
increased from 422 to 434) and more tribes using the NIGC’s voluntary fingerprint card
processing services (e.g., the number of respondents for § 514.15 increased from 192 to
215). The NIGC received an average of 5,125 more fingerprint cards per year than the
2012 estimates;

(b)

the Commission has increased the number of estimated burden hours from 22,730 to
38,292.5. The biggest factor for this increase was the result of tribal feedback. Although
the NIGC has not changed its fingerprint card submission requirements since 2012 (when
the previous burden estimates were approved), based on tribal survey responses, the
average hours per response for submitting fingerprint cards rose from 0.3 hours to 0.5
hours. Combine that increase with the fact that the NIGC received 5,125 more fingerprint
cards than the 2012 estimates, it quickly adds up to 34,818.5 burden hours just for the
fingerprint card submissions; and

(c)

the Commission has increased the estimated annual cost burden from $0 to
$1,467,585. The Commission believes that the large increase in annual cost burden is due
to estimation errors in the previous request for renewal. While tribes have always paid a
fee to the NIGC and FBI to process fingerprint cards, those costs were inadvertently
omitted in 2012.
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 Commission certifies compliance with 5 CFR § 1320.9.
B.

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