Saturday, March 22, 1997 | 11:59 a.m.
The National Indian Gaming Commission said tribes in Michigan and elsewhere had improved their rate of compliance with most of the eight rules. They deal with matters such as background checks on casino workers, auditing and licensing.
The commission's first quarterly report last September showed 18 of the 19 gambling houses in Michigan out of compliance in at least one category. That report covered June through August 1996.
This week's report, covering September through December, shows nine of the 19 casinos in full compliance. They include casinos and bingo halls run by the Bay Mills Indian Community, the Grand Traverse Band of Ottawa and Chippewa Indians, the Keweenaw Bay Indian Community and the Saginaw Chippewa Indian Tribe.
The other nine casinos were meeting most of the regulations but fell short in certain areas.
Nationwide, 72 of the 273 gambling operations listed were in full compliance - up from 45 in the earlier report.
"I think there's been an improvement on the part of the Michigan tribes," said Charlotte Hrncir, spokeswoman for the commission. "It's our hope that we'll see even further improvement by March 31," when the next reporting period ends.
The commission can fine tribes up to $25,000 per violation per day, or order them to close gambling operations. It has issued at least 17 citations and 10 closure orders since it was formed in 1990, Ms. Hrncir said.
Thus far the panel has been lenient, working with tribes to bring them into voluntary compliance, she said. But those still failing to meet all the requirements by the end of this month can expect more vigorous enforcement, she said.
All the Michigan casinos met or were in the process of meeting five of the eight rules.
They require tribes to sign gambling compacts with their respective states; to perform background checks on key employees and submit reports to the commission; to review prospective employees' criminal history through FBI fingerprint records; to submit copies of key employees' job applications; and to adopt tribal gambling ordinances in keeping with federal regulations.
The other three rules say the tribes must pay fees to the commission based on a percentage of their gambling revenues; license each of their gambling facilities; and obtain independent yearly audits of each facility.
The report said the Hannahville Indian Community had not paid fees or submitted an audit for its bingo hall.
The Lac Vieux Desert Band near Watersmeet met all requirements except fee payment, the report said. The tribe was in full compliance during the earlier reporting period.
The Sault Ste. Marie Tribe of Chippewa Indians had not paid fees for two of its casinos, had not licensed any of them and had not submitted audits for five of the seven gambling operations, the report said.
Tribal attorney Dan Green said the tribe was always in compliance with the fee and audit requirements, but had submitted payments and reports that apparently confused the federal commission. The tribe has changed its policies to avoid future mix ups, he said.
The licensing problem arose from the tribe's approval of a single license for all the gambling operations, while the commission wanted separate ones for each facility, Green said. The tribe has since met that requirement, he said.
He said the commission, which wrote its regulations in 1993, began a comprehensive enforcement effort only last year.
"Both the tribes and the NIGC are sort of overwhelmed by the start-up process," Green said.
Officials with the Lac Vieux Desert and Hannahville tribes did not return telephone calls seeking comment Friday.
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