Overview
Title
Fee Rate and Fingerprint Fees
Agencies
ELI5 AI
The National Indian Gaming Commission sets rules about how much money they should collect from gaming places. They said they will keep collecting the same amounts as before, starting November 2020. They also decided to charge more money to check people's fingerprints because they need better tools and systems.
Summary AI
The National Indian Gaming Commission has announced its annual fee rates for gaming operations. For tier 1, the fee rate is set at 0.00%, while tier 2 has a rate of 0.062% of assessable gross revenues, and a reduced rate of 0.031% applies to Class II revenues if the tribe has self-regulation certification. These rates will be effective from November 23, 2020, until changed. Additionally, the Commission has increased the fingerprint processing fee from $22 to $45 per card as of November 13, 2020, to cover updated equipment and compliance costs.
Abstract
Notice is hereby given that the National Indian Gaming Commission has adopted its annual fee rates of 0.00% for tier 1 and 0.062% (.00062) for tier 2, which remain the same as current fee rates. These rates shall apply to all assessable gross revenues from each gaming operation under the jurisdiction of the Commission. If a tribe has a certificate of self-regulation, the fee rate on Class II revenues shall be 0.031% (.00031) which is one-half of the annual fee rate. The Commission may need to reassess these rates during the year, as well as the fee collection processes laid out in its regulations. This reassessment includes the Commission considering actions to potentially increase fee rates before November 2021, promulgate changes to the provisions described in the Commission's Fees regulations, and/or other potential measures to address the agency's budget planning. These potential measures will not be implemented before the third quarter payment due date, will comply with the Indian Gaming Regulatory Act's existing requirements, and will be done in consultation with tribal governments as outlined in the Agency's policies on government-to-government consultation. The annual fee rates being adopted here are effective November 23, 2020 and will remain in effect until new rates are adopted. The National Indian Gaming Commission has also adopted its fingerprint processing fee of $45 per card effective November 13, 2020. The increase from the current $22 per card is necessary to update the NIGC's fingerprint system and network (equipment cost) and implement additional measures required to ensure compliance with Federal Bureau of Investigation requirements. The fingerprint processing fee being adopted here is effective November 13, 2020, and will remain in effect until the Commission adopts a new rate.
Keywords AI
Sources
AnalysisAI
The document from the Federal Register outlines recent updates from the National Indian Gaming Commission regarding fee assessments and fingerprint processing fees. Fee rates for gaming operations have remained unchanged, with tier 1 operations incurring no fees and tier 2 operations subjected to a fee of 0.062% on gross revenues. Tribes with a self-regulation certificate will benefit from a reduced rate of 0.031% for Class II revenues. These rates will be effective from November 23, 2020, until the Commission decides to implement new rates.
In addition, the fingerprint processing fee has been increased from $22 to $45 per card, effective November 13, 2020. This change is intended to cover costs related to updating fingerprint system equipment and aligning with Federal Bureau of Investigation compliance requirements.
Key Issues and Concerns
Several issues arise from this notice:
Fingerprint Fee Increase: The increase in the fingerprint processing fee is substantial, raising questions about the precise breakdown of costs and the necessity of such a jump. Greater transparency in how these fees are calculated and justifying the specific equipment updates could be beneficial.
Uncertain Reassessment of Rates: The potential for fee reassessing before November 2021 introduces a layer of uncertainty for financial planning among tribal operations. Greater details on the timing and procedure for this reassessment could improve predictability and planning.
Ambiguity in Implementation: The document notes that potential changes will not be enacted before the third quarter payment due date but does not specify exact dates. This vagueness could lead to confusion among stakeholders.
Consultation Process: While the document mentions consultation with tribal governments, it lacks specific details on the process and criteria for this engagement. Clearer guidelines would ensure more effective and transparent consultations.
Rationale for Fee Rates: The document does not explain why the current fee rates have been maintained. Providing a detailed analysis of the decision-making process could enhance stakeholders' understanding and transparency regarding these rates.
Public and Stakeholder Impact
Broadly, the unchanged fee rates might be a relief to gaming operations as they represent continuity in expected financial obligations. However, the significant increase in fingerprint processing costs could burden operations, particularly smaller or less financially robust tribes.
For stakeholders, particularly tribal governments and gaming operations, this document prompts considerations for future financial planning. While the stability of fee rates is advantageous, the looming possibility of reassessment and increases creates a need for contingency planning.
The increase in the fingerprint fee, meanwhile, could potentially affect the compliance costs of operations in the short term, necessitating budget adjustments.
In essence, maintaining an open line of communication between the Commission and the tribal governments, along with offering greater detail about fee calculations and upcoming revisions, would help foster a more transparent and collaborative environment going forward.
Financial Assessment
The National Indian Gaming Commission (NIGC) is adjusting its financial procedures and fees, as detailed in the notice regarding fee rates and fingerprint processing. This document highlights the Commission's decisions on annual fee rates and fingerprint processing fees, underscoring the financial planning and regulatory compliance necessary for the effective operation of gaming on Indian lands.
Annual Fee Rates
The NIGC has solidified its annual fee rate of 0.00% for tier 1 and 0.062% (or 0.00062) for tier 2. These rates apply to assessable gross revenues from each gaming operation under its jurisdiction. Notably, if a tribe possesses a certificate of self-regulation, the fee rate on Class II revenues is reduced by half to 0.031% (or 0.00031). The retention of these rates provides tribes with predictable financial obligations for the short term, although the notice indicates possible reassessment before November 2021, introducing some uncertainty into long-term financial planning.
Fingerprint Processing Fee
The NIGC has increased the fingerprint processing fee from $22 per card to $45. This significant hike aims to cover the costs associated with updating the Commission's fingerprint system and network as well as complying with Federal Bureau of Investigation requirements. This necessity indicates the complexity and expense of maintaining compliant and modern systems, which are critical for ensuring proper regulatory oversight. The increase may cause some financial strain or need for financial adjustments by the gaming operations.
Issues Related to Financial Allocations
The increase in the fingerprint processing fee is substantial, warranting a clear explanation of the precise costs involved. Stakeholders might benefit from insight into how these costs are calculated and the specific updates required for federal compliance.
The potential for reassessment of fee rates by November 2021 suggests possible changes that could affect financial stability. This might challenge tribal gaming operations' ability to plan financially unless more detailed timing and processes of the reassessment are provided.
The document ensures that before implementing any rate changes, the Commission will engage with tribal governments in its decision-making process. However, it lacks specificity about how these consultations will occur, which could lead to ambiguities and concerns from affected communities.
Overall, transparency in both the justification for increased fees and the processes for potential rate changes could enhance understanding and aid in the financial planning for gaming operations under the NIGC's jurisdiction.
Issues
• The increase in the fingerprint processing fee from $22 to $45 per card is significant and may require further justification, particularly concerning how the costs are calculated and what specific updates are necessary for compliance with FBI requirements.
• The document mentions the potential for reassessment of fee rates before November 2021, which introduces uncertainty into financial planning for tribes, and further details on the timing and process of this reassessment could improve clarity.
• The phrase 'potential measures will not be implemented before the third quarter payment due date' could benefit from specifying exact dates to enhance clarity for stakeholders.
• The document states that changes will 'be done in consultation with tribal governments,' but it does not specify the process or criteria for this consultation, which could lead to ambiguities in future engagements.
• While the document states the current fee rates remain unchanged, it lacks detailed reasoning or analysis of why these specific rates were chosen and maintained, which could improve transparency and understanding of the Commission's decision-making process.