[Senate Hearing 113-521]
[From the U.S. Government Publishing Office]
S. Hrg. 113-521
NOMINATION OF JONODEV OSCEOLA CHAUDHURI TO BE CHAIRMAN OF THE NATIONAL
INDIAN GAMING COMMISSION
=======================================================================
HEARING
before the
COMMITTEE ON INDIAN AFFAIRS
UNITED STATES SENATE
ONE HUNDRED THIRTEENTH CONGRESS
SECOND SESSION
__________
NOVEMBER 12, 2014
__________
Printed for the use of the Committee on Indian Affairs
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COMMITTEE ON INDIAN AFFAIRS
JON TESTER, Montana, Chairman
JOHN BARRASSO, Wyoming, Vice Chairman
TIM JOHNSON, South Dakota JOHN McCAIN, Arizona
MARIA CANTWELL, Washington LISA MURKOWSKI, Alaska
TOM UDALL, New Mexico JOHN HOEVEN, North Dakota
AL FRANKEN, Minnesota MIKE CRAPO, Idaho
MARK BEGICH, Alaska DEB FISCHER, Nebraska
BRIAN SCHATZ, Hawaii
HEIDI HEITKAMP, North Dakota
Mary J. Pavel, Majority Staff Director and Chief Counsel
Rhonda Harjo, Minority Deputy Chief Counsel
C O N T E N T S
----------
Page
Hearing held on November 12, 2014................................ 1
Statement of Senator Barrasso.................................... 24
Statement of Senator Begich...................................... 3
Statement of Senator Crapo....................................... 3
Statement of Senator Franken..................................... 2
Statement of Senator Johnson..................................... 3
Statement of Senator Tester...................................... 1
Witnesses
Chaudhuri, Jonodev Osceola, Nominee to be Chairman of the
National Indian Gaming Commission.............................. 3
Prepared statement........................................... 5
Appendix
Berrey, Hon. John, Chairman, Quapaw Tribe of Oklahoma, letter
submitted for the record....................................... 31
Dixon, Hon. Stacy, Tribal Chairman, Susanville Indian Rancheria,
letter submitted for the record................................ 32
NOMINATION OF JONODEV OSCEOLA CHAUDHURI TO BE CHAIRMAN OF THE
NATIONAL INDIAN GAMING COMMISSION
----------
WEDNESDAY, NOVEMBER 12, 2014
U.S. Senate,
Committee on Indian Affairs,
Washington, DC.
The Committee met, pursuant to notice, at 4:00 p.m. in room
628, Dirksen Senate Office Building, Hon. Jon Tester,
Chairman of the Committee, presiding.
OPENING STATEMENT OF HON. JON TESTER,
U.S. SENATOR FROM MONTANA
The Chairman. We call the Committee on Senate Indian
Affairs to order.
Today the Committee is going to hold a hearing to examine
the President's nomination of Jonodev Osceola Chaudhuri to
serve as Chairman of the National Indian Gaming Commission. Mr.
Chaudhuri was nominated on July 22nd by President Obama and has
served this past year as Vice Chair of the Commission after
being appointed to that position by Secretary Jewell.
When Congress enacted the Indian Gaming Regulatory Act 25
years ago, it established the National Indian Gaming Commission
as an independent agency to oversee gaming at the Federal
level. The Act recognized tribes as the primary regulators of
gaming, unless specific responsibilities of the commission.
The agency's mission is to carry out this oversight with
the goals of promoting tribal economic self-sufficiency,
maintaining the integrity of the Indian gaming industry and
ensuring that tribes are the primary beneficiaries of their
gaming activities.
The NIGC Chairman is tasked with reviewing tribal gaming
ordinances, reviewing management contracts, conducting audits
and investigations and undertaking enforcement actions,
including issuing closure orders and civil fines. In addition
to its oversight role, the commission also works to provide
technical assistance and training to tribal regulators.
The Chairman and two commissioners oversee nearly 100
employees who work at Washington, D.C. headquarters and seven
regional offices. The agency is funded at approximately $20
million annually, all through fees collected from tribal gaming
operations.
Since the creation of the commission, Indian gaming has
seen a tremendous growth. While tribal gaming started with
small bingo halls and poker rooms, today the commission
oversees 422 gaming facilities operated by 240 tribes in 28
States. In this past year, Indian gaming revenues exceeded $28
billion for the first time in history.
Tribal governments use gaming revenues to provide essential
services, including education and health care, to its tribal
members. They are also used for infrastructure development such
as roads, water systems, housing. Indian gaming also provides
thousands of jobs for Native and non-Native residents alike.
For many tribes, gaming is just a small revenue generator used
to supplement tribal economies, while for others, gaming has
allowed tribes to revitalize their communities and achieve
greater levels of self-governance.
While concerns expressed by opponents of Indian gaming have
largely failed to materialize, there is a constant need to be
vigilant in the oversight of the industry. This protects tribes
and their members and maintains the integrity of the industry.
For the commission to succeed it needs good leadership. The
nominee for Chairman, Mr. Chaudhuri, has provided that
leadership in an acting capacity for over a year now. Mr.
Chaudhuri has an extensive background in Indian affairs and is
respected in Indian law and Indian gaming communities. He has
received numerous letters of support, including those from the
Arizona and Oklahoma Indian Gaming associations, two of the
States where he has been most active in his career.
I want to thank Mr. Chaudhuri for his service to date,
thank you, and for your willingness to take on this position.
If confirmed, I look forward to hearing from you today about
the commission's activities and how you would lead the
commission to continue meeting the challenges facing Indian
gaming going forward.
The Chairman. Do any of the other members have a statement?
STATEMENT OF HON. AL FRANKEN,
U.S. SENATOR FROM MINNESOTA
Senator Franken. I do.
The Chairman. Senator Franken?
Senator Franken. Thank you, Chairman Tester, for holding
this hearing today, and thank you, Mr. Chaudhuri, for your
service so far. Indian gaming is a vital economic development
tool for many tribes across our Country and in my State.
I said in our last hearing about gaming that I believe the
fact that gaming revenue dwarfs Federal spending in tribal
communities is an indictment of Federal policy and an
indication of why it is so important to protect Indian gaming.
The National Indian Gaming Commission is vital to that effort,
and I know you take your responsibility seriously.
In many ways, I think we are at a very important moment for
Indian gaming. Increased competition from commercial gaming and
the unpredictable effect of rapidly changing technology could
either make or break this important economic development tool.
I look forward to hearing from you about your views on these
issues and your role in moving Indian gaming forward.
Thank you, and thank you, Mr. Chairman.
The Chairman. Senator Begich?
STATEMENT OF HON. MARK BEGICH,
U.S. SENATOR FROM ALASKA
Senator Begich. Mr. Chairman, I don't really have any
comments other than to say I am glad to see you here, I am glad
to see this opportunity to appoint Mr. Chaudhuri, thank you for
being here from St. Paul, which of course we always like to
remember Alaskans here. We appreciate it a great deal and I am
looking forward to getting this nomination moving forward and
also spending time with you. Thank you.
The Chairman. Senator Crapo?
STATEMENT OF HON. MIKE CRAPO,
U.S. SENATOR FROM IDAHO
Senator Crapo. Thank you very much, Mr. Chairman, for
holding this hearing on the President's nominee to lead the
National Indian Gaming Commission, and thank you, Mr.
Chaudhuri, for being here today.
Allow me to extend a welcome to your family for being here
as well. And in the interest of hearing directly from you, I am
going to keep my remarks very brief, Mr. Chairman.
The National Indian Gaming Commission serves a vital role
in regulating gaming activities related to tribal lands. The
results of the compromise solution to conflicts surrounding
Indian gaming between various stakeholders is that the
commission and its authorizing legislation seeks to balance the
need to promote tribal sovereignty with the need to be
sensitive to the concerns of other affected interests and the
States. As such, the commission must demonstrate a strong
willingness to work collaboratively with all of our impacted
stakeholders as it carries out its duties and responsibilities.
I won't go any further, Mr. Chairman. I look forward to
hearing Mr. Chaudhuri's views on this and other related matters
today. And again, welcome.
The Chairman. Thank you.
Senator Johnson?
STATEMENT OF HON. TIM JOHNSON,
U.S. SENATOR FROM SOUTH DAKOTA
Senator Johnson. Welcome, Mr. Chaudhuri. As a side note, I
welcome also Dr. Chaudhuri, he was a faculty member at USD long
ago, and I welcome him.
The Chairman. Thank you, Senator Johnson.
With that, we will turn it over to you, Mr. Chaudhuri, for
your statement.
STATEMENT OF JONODEV OSCEOLA CHAUDHURI, NOMINEE TO BE CHAIRMAN
OF THE NATIONAL INDIAN GAMING
COMMISSION
Mr. Chaudhuri. Thank you, Chairman, members of the
Committee, [greeting in Native tongue]. I am very honored to be
here today.
My name is Jonodev Osceola Chaudhuri, and I a am a proud
citizen of the Muscogee Creek Nation. I am honored to be
President Obama's nominee for Chairman of the National Indian
Gaming Commission. Thank you for today's hearing to consider my
nomination.
In my time at the NIGC, much which has been spent as acting
Chairman. I have led and worked closely with our extraordinary
team to keep the agency operating smoothly and on a positive
trajectory during a period of transition. I have made a number
of critical decisions and I have done so with a judge's
commitment to fairness and process. I have never shied away
from difficult decisions.
Should I be confirmed, I will build on the agency's ability
to engage in sound regulation consistent with the Indian Gaming
Regulatory Act.
With me today, as mentioned, is my wife, Marissa. Marissa
is incredible. She is a wonderful person in an incredible
profession. She serves her Alaska Native community, the Aleut
Community of St. Paul Island, very well as a member of their
management team. I am also joined by my son, Kanuux, who is
seven. Our youngest son is a little too unpredictable to be
brought in public at this time, so he is at home with a family
friend.
I am thankful every day of my life for having Marissa in
it. I am also very honored and excited to be joined today by my
father, Joyotpaul Chaudhuri, Joy, who at the age of 81 has
traveled to be here from Tempe, Arizona. My family's values,
guidance and support have made me who I am. So I am very
thankful, Chairman, Vice Chairman, members of the Committee, to
join you today.
I understand the profound impact that responsible and
purpose-driven gaming has had in many communities throughout
Indian Country. Before law school, I worked for three years as
an educator and cultural preservationist for an Arizona tribe
whose gaming operation was in the early stages of flourishing.
I saw how that community used its gaming resources to invest in
infrastructure, health services, educational programs and
cultural preservation efforts. Similarly, I saw how my tribe,
the Muscogee Creek Nation, and neighboring tribes in
southeastern Oklahoma began using gaming revenue to transform
their communities.
Through these experiences, I appreciate the connection
between preserving the integrity of Indian gaming and
supporting tribal self-determination, a goal clearly set forth
in IGRA.
I have a solid, well-rounded career that has equipped me
well to serve as a strong regulator. My judicial experience has
given me a thoughtful and measured approach to issue
resolution. My lengthy experience as an attorney and an Indian
law and gaming teacher has given me a solid understanding of
the commissions' responsibilities, authority and history.
My regulatory work at the NIGC, coupled with high level
policy work at the department of Interior, have given me a full
picture of how gaming impacts policy on a national scale.
Finally, my lifetime of service to under-represented
communities helps me appreciate how prudent economic
development efforts positively impact real lives.
These experiences give me a clear understanding of the
NIGC's role in helping protect a critical avenue for tribal
nation-building. I have lived most of my life in Arizona, where
my father, my brother Paul and my aunt Richinda Sands and my
cousin-brother Lance Sands still live. Growing up, the family
kept one foot in Muscogee life at all times, always staying
connected to cultural, ceremonial and church activities in
Oklahoma. I am a member of the Nokose, or Bear Clan, and my
warrior name is Nokoshomvhte, or Leader-Bear, from the Nyuaka
ceremonial grounds, stomp grounds, where I have served as Fire
Keeper. My mother, the late Jean Chaudhuri, a full-blood
Muscogee Creek, was a respected Indian Country leader and life-
long community volunteer. My father, a naturalized citizen who
emigrated here from India in the early 1950s, is a retired
political science professor who mentored and supported numerous
students and tribal leaders throughout his career. Both lived
lives of public service.
Throughout my life, I have been intimately exposed to core
Muscogee values of compassion, humility, respect and courage,
other words for love. Central to my family's belief is that
these values can be expressed through public service. Elders of
my tribe, including my mother, often recounted a fundamental
teaching: whatever gifts you may have do not belong to you;
they are given to you to help you serve the community.
For me, the NIGC chairmanship represents an opportunity to
serve. I welcome the opportunity to keep the agency moving in a
positive direction. My personal and professional experiences
make me ideally suited to serve as Chairman and I am honored
and humbled to be considered for this important task. If
confirmed, I will perform it to the best of my ability.
Thank you [phrase in Native tongue]. Thank you for your
time today. I am happy to answer any questions you may have.
[The prepared statement and biographical information of Mr.
Chaudhuri follow:]
Prepared Statement of Jonodev Osceola Chaudhuri, Nominee to be Chairman
of the National Indian Gaming Commission
Mr. Chairman, Mr. Vice Chairman, and Members of the Committee. My
name is Jonodev Osceola Chaudhuri, and I am proud citizen of the
Muscogee (Creek) Nation. I am honored to be President Obama's nominee
for Chairman of the National Indian Gaming Commission (the ``NIGC'' or
``Commission''). Thank you for today's hearing to consider my
nomination.
Since being appointed to serve as a Commissioner by Secretary Sally
Jewell in September of 2013 and subsequently designated to serve as
Acting Chairman by President Obama for most of the preceding year, it
has been my distinct honor and privilege to serve at the NIGC, and I am
profoundly grateful to President Obama and Secretary Jewell for the
opportunity to do so. In my time at the NIGC, I have made every effort
to help keep the agency operating smoothly and on a positive trajectory
during a period of transition. Should I be confirmed to serve as
Chairman, I would welcome the additional stability at the agency that
would result, and I will do my part to help the agency continue to
engage in sound regulation consistent with the Indian Gaming Regulatory
Act (IGRA).
With me today are my wife, Marissa Chaudhuri--formerly Marissa
Merculieff--and our oldest son, Kanuux. Our youngest son, Hamati, is at
home with a family friend. My wife is an attorney by trade and serves
her Alaska Native tribal government, the Aleut Community of St. Paul
Island, in a management position. She is an incredible person and a
skilled professional; and I am thankful every day for having her in my
life. I am also thankful and excited to be joined today by my father,
Joyotpaul Chaudhuri, who at the young age of 81 and despite health
challenges that such an age entails, has traveled to be here from
Tempe, Arizona. My family's values, guidance, support, and grounding,
which I will discuss in more detail, have not only made me who I am,
but also provide an excellent backdrop for why I wish to and am willing
to serve as Chairman of the NIGC.
My appreciation of the importance of sound regulation flows from my
professional experience in law and public policy. My interest in public
service flows from a belief that we each have a responsibility to do
whatever we can to help improve opportunities for future generations.
For me, service as Chairman of the NIGC resonates with my professional
experience and commitment to service, as the regulation of Indian
gaming requires a complete understanding of the law, of how gaming fits
into broader public policy, and, on a micro-level, of how gaming
impacts real lives in the community. I believe my professional and
public service backgrounds have served the agency well in this regard
thus far and will continue to do so. My professional pursuits and my
commitment to service are intertwined, and both are directly born from
my family background.
I am the son of the late Jean (Hill) Chaudhuri, a full-blood
Mvskoke (``Muscogee'') born on our family's allotment in Okfuskee
County, Oklahoma, and Joyotpaul Chaudhuri, a naturalized citizen who
came to the United States from Calcutta, India, in the early 1950s.
Together, they are my two greatest heroes as they are in their own ways
the embodiment of service.
My mother stood as a powerful example of leadership and the
strength of Creek women. By all accounts, tribal life in rural Oklahoma
in the 1930s and 1940s was hard. Not unlike many Indian families of the
day, our family drew water from a nearby well, did not have
electricity, and often worked as migrant farm workers to make ends
meet. Relations between American Indian and non-Indian communities were
strained, and educational opportunities were limited. Mom did not
finish high school. Despite her lack of formal education, her love of
knowledge drove her to be self-educated. She was inquisitive, and
learned from elders, including a clan-grandfather that had walked the
Trail of Tears. She learned all that she could about our peoples'
history, ceremonies, language and culture. She also learned church
life, which was of great significance to much of the Creek community.
English was her third language (Creek was her first, Cherokee her
second), and in the tradition of Creek orators, she eventually mastered
the art of public speaking and advocacy.
Continuing a commitment to service that she learned from her
parents and relatives, she became a grassroots organizer, storyteller,
playwright, author, and an advocate for the Muscogee community, other
Native communities, and other under-privileged communities. Always
grounded in her culture and values, her foundation as a Muscogee
(Creek) woman guided her to assist with numerous issues and public
service efforts throughout her life and throughout her travels all
across the country. As a result, her work and service to her people,
Indian Country in general, and numerous non-Indian disadvantaged
communities, such as founding a health clinic and off-reservation
cultural center, was acknowledged on both a national and local level.
Although raised a world away in India, my father shared Mom's
values and commitment to service. It was my dad's childhood passion for
Native American history that led him to come to United States, and more
specifically Oklahoma. Dad became a political philosophy professor,
teaching American Indian policy and political science for well over 40
years, helping to develop Indian Studies programs at a number of
universities, most notably the University of Arizona. Along the way,
Dad mentored and supported numerous students, tribal leaders and
organizers, and community members. Dad has published many articles and
monographs in Indian affairs. Along with Mom, he authored A Sacred
Path: The Way of the Muscogee Creeks, a comprehensive synthesis of
Muscogee history, culture, and philosophy.
From my family's teachings and example, I have been intimately
exposed to core Muscogee values, the foremost of which are love/
compassion, humility, respect, and courage. Central to my family's
beliefs is that these values can be expressed through public service.
Elders of my tribe, including my mother, often recounted a fundamental
teaching: whatever gifts you may have do not belong to you; they were
given to you to share with others and to serve the greater good of the
community. The core Muscogee values have been reinforced by my own
personal and professional experiences, and I strive to apply them in
all matters.
I have lived most of my life in Arizona where my father, my brother
Paul (Joydev Mahagi), my aunt Richinda Sands--another family tradition-
keeper, and my cousin-brother Lance Sands still live. I am a member of
the Nokose (Bear) Clan, and my warrior name is Nokoshomvhte (Leader/
Front Bear). I belong to and participate in Nuyaka traditional/
ceremonial grounds in Okfuskee County, Oklahoma, and I have served as
Totkv-Vfastv (fire-keeper) there. My family also has close ties to
Greenleaf Indian Baptist Church in Okemah and lineal ties to the Arpeka
and Hickory Ground ceremonial grounds. Growing up, the family kept one
foot in Oklahoma at all times. In addition to regular trips to visit
family, Mom and Dad made sure we stayed connected to cultural and
ceremonial activities throughout my childhood.
As an adult, I have pursued educational and professional pursuits
that I felt would enhance my ability to serve. After graduation from
Dartmouth College in 1993, I spent three years as a culture and
enrichment coordinator for the Fort McDowell Yavapai Nation in Arizona.
On the heels of a historic standoff with federal officials that helped
shape the contours of gaming throughout the state, Fort McDowell was in
the midst of a substantial expansion of its gaming operation, as well
as of its overall economic development activity. It was a formative
time for me. My primary interest was to serve as an educator and
cultural preservationist for the community, but I was amazed by the
unmistakable connection between economic development and self-
determination. I saw how the tribe used resources from gaming to
bolster its services and programs and build a viable infrastructure. I
saw how resources were used to support culture and language programs as
well as to develop tribally-run health care services. I continue to
carry with me the lessons I learned firsthand during that period about
the connection between responsible and purpose-driven gaming activity
and cultural preservation and self-sufficiency.
After my time at Fort McDowell, I attended Cornell Law School to
pursue a career in law and set out to equip myself with the best
professional experiences I could, not knowing where such experiences
would take me. I have since been blessed to have had a solid, well-
rounded career, having served in the private sector for approximately a
decade and serving in public trust positions within federal, state, and
tribal governments throughout the last 15 years. My education and
professional experience has given me both a broad understanding of law
and public policy, as well as a targeted and direct understanding of
the gaming industry and its impacts on lives on the ground.
I am an attorney, licensed in Oklahoma, Arizona, and Washington
State, and admitted in various federal, state, and tribal courts. After
law school, I clerked for judges James Ackerman and Noel Fidel of the
Arizona Court of Appeals before practicing civil litigation, business
and finance, and Indian law from 2001-2006 with the firm of Snell &
Wilmer, a large national law firm based in Phoenix. I left Snell &
Wilmer to start my own small firm, which I ran from 2006-2010. I also
have a modest background in criminal law, having clerked for the
Arizona Federal Defender's Office in Phoenix and practiced as a Deputy
Public Defender in Maricopa County. Throughout my practice, I actively
engaged in activities targeted at serving the legal profession and the
greater community, regularly teaching Indian law courses, including
Indian gaming, at Phoenix College and serving on numerous boards and
organizations, including service as Chairman of the Arizona Bar
Association's Indian law section.
Contemporaneous with my practice of law, I have been honored to
serve as a judge for many years. I have served as a full-time trial
judge for the Puyallup Tribe of Indians in Washington State, as well as
an appellate judge for the Gila River Indian Community in Arizona, the
Yavapai-Apache Nation in Arizona, the San Manuel Mission Band of
Indians in California, and, from 2006-2012, the Muscogee (Creek)
Nation. Much of my time on the Muscogee (Creek) Nation Supreme Court
was spent as Chief Justice.
I have been fortunate to receive high-level public policy
experience, serving as Senior Counselor to the Assistant Secretary--
Indian Affairs at the U.S. Department of the Interior, as well in my
most recent post as Acting Chairman of the NIGC.
Each of these experiences has given me direct, practical skills
well-suited to the position of Chairman of the NIGC.
First and foremost, having served in a leadership role at the NIGC
for over a year, much of that time as Acting Chairman, I have gained a
strong understanding of the work and challenges of the agency. During
that time I have strived to make decisions with the professional
perspective and personal values I previously discussed. I have done so
with a judge's commitment to fairness and process and with a personal
sense, born from experience, of the real world impact those decisions
would have. I have never shied away from difficult decisions in my
professional career, nor will I do so in the future.
The greatest resource of the agency is its highly skilled and
committed staff. As the NIGC is the only agency in the federal
government that regulates any form of gaming, the staffs skillset is
unique and critical to the agency's continued success. The
professionalism and dedication within the NIGC team is remarkable, and
I have been privileged to work with and learn from my NIGC colleagues
over the last 14 months. I look forward to continuing to do so
throughout my time at the agency.
Through the Commission's outreach at consultations, tribal
leadership meetings, and industry functions, I have expanded on my
relationships with industry stakeholders to build on the agency's
goodwill and collaborative relationships. Together with fellow
Commissioner Little, I have worked to improve communication within the
agency and address various operational matters.
In addition to my firsthand experience with the agency, my
extensive professional experience has also proven to be directly
relevant and helpful during my NIGC tenure.
My judicial experience has been my most useful asset at the NIGC.
It has given me a thoughtful, measured, approach to issue resolution
with an eye toward long-term impacts. As a judge, one must hold a
solemn commitment to the fair and impartial application of the law. The
same is true as a regulator. Both require a thorough understanding of
the law and procedures to be applied in a given situation and both
require one to place decisions in a proper public policy and real world
context.
My lengthy service as an attorney and teacher in the field of
Indian law, including Indian gaming matters, has given me a solid
understanding of the Commission's legal and regulatory issues. My
policy background from service at the Department of the Interior and a
number of community organizations, as well as my personal experience,
have given me a full picture of how gaming and gaming decisions impact
federal Indian policy and tribal nation-building on a national scale.
Finally, my volunteer service and my lifetime service to
underrepresented communities help me appreciate how prudent economic
development efforts positively impact real lives.
All of these experiences have given me a deep respect for efforts
tribes engage in to improve their communities and an appreciation for
the role that NIGC plays in protecting a critical avenue for tribal
economic development through sound regulation. Further, these
experiences have taught me to prepare for foreseeable challenges in the
work that any organization performs. For these reasons, I am committed
to building on the agency's philosophy of cooperation and collaboration
with tribes and tribal regulators, and I am committed to doing whatever
I can to ensure that the agency continues to improve its technological
capabilities.
I am committed to applying the regulatory tools of IGRA in a
balanced, practical, and fair manner. I welcome the opportunity to do
what I can to fulfill the requirements of IGRA and keep the agency
moving in a positive direction. On the surface, it may appear that my
path to the NIGC is markedly different from others who have served in
the post. While that may be true, I am convinced that my personal and
professional experiences make me ideally suited for the role at this
point in the agency's history.
For me, the NIGC Chairmanship represents an opportunity to serve.
There are others who are more suitable than I am to be full-time
cultural preservations; although I take seriously my responsibility to
learn and pass on my peoples' traditions to my children and whomever
else I may be able to. There are others more suitable than I to be
full-time language preservationists, although I will do what I can to
continue learning Creek until my last days. There are certainly others
better suited to fulfill many of the other important public and private
roles that together, help ensure the continued survival and success of
our people. At this moment, however, I have the opportunity, as a
regulator, to do my part to perform an important role in supporting
self-determination. Namely, through sound regulation, I can help
preserve the integrity of an industry that has had a monumental impact
on the historical landscape of Indian country. This is what I can do
now to help. I stand willing and able to do so. I am honored to be
considered for this important task, and if confirmed, I will perform it
to the best of my ability.
Thank you for your time today. I am happy to answer any questions
you may have.
______
[GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT]
The Chairman. Thank you, Mr. Chaudhuri.
I would start by, you discussed some about your activities
and initiatives that have happened since you have been with the
commission. Are there any goals or changes that you would
pursue if confirmed, other goals you would pursue if confirmed?
Mr. Chaudhuri. Thank you, sir.
Certainly I discussed technology quite a bit in my written
testimony. We are obviously living in the information age and
the industry we regulate is driven by technology. That is
absolutely clear. Tribes have been incredible innovators of
gaming technology. And in order to keep pace with our
regulatory duties as well as our internal capabilities, we have
to make sure that technology is a top priority for the agency.
So investing in infrastructure, staff, as well as ongoing
regulatory review, technology is certainly key to that.
The Chairman. There have been two commissioners now for a
while. If you get confirmed for this position, there will be a
commissioner slot that is open. Can you discuss the importance
of having a full commission and also, discuss why it is
important to have a full commission, is there anything you
cannot do because the commission isn't full?
Mr. Chaudhuri. Thank you, Chairman. I really have to take
my hat off to the extraordinary staff at the NIGC. We have been
able to keep the agency moving along and we have been able to
perform our regulatory duties in a real time of transition.
That said, there are many, many benefits to having a full
commission. On appeal, any appeal of the Chairman is appealed
to the full commission. As things stand right now, we have two
commissioners and that won't change until and unless,
hopefully, be it so willing, confirmation takes place, that
won't change.
The practical effect of that is any appeals of the Chairman
go to an even-numbered appellate body, of which the Chairman is
one of them. That is one specific example.
But additionally, all voices are required as they benefit,
the regulatory review process. So having the expertise of a
full commission is absolutely essential in order for us to
perform our ongoing obligation of regulatory review.
Finally, while I am very honored to serve as acting
Chairman right now, the Vacancies Act does have its own set of
limitations such that the acting Chairman can serve, in certain
circumstances, whenever there isn't an acting Chairman or a
confirmed Chairman in place, there are other workarounds that
the agency has to perform to perform its regulatory duties. So
hopefully that is, in a nutshell, a summary of some of the
considerations at play.
The Chairman. Okay. I think it is important we get the
third commissioner. But I would ask, is there anything you
cannot do without that third commissioner, besides the appeals?
Mr. Chaudhuri. At this time, as acting, my technical
regulatory authorities, as set forth in IGRA, I am able to
perform those. However, one of the important functions of the
NIGC is to perform a public education role in the industry.
Certainly the weight of a confirmed Chairman is different than
acting chair. And I would welcome the stability and the
consistency that a confirmed chair would bring.
The Chairman. Thank you.
Vice Chair Barrasso?
STATEMENT OF HON. JOHN BARRASSO,
U.S. SENATOR FROM WYOMING
Senator Barrasso. Thank you very much, Mr. Chairman, for
holding this hearing. Today we are considering the President's
nominee to serve as the Chairman of the National Indian Gaming
Commission. The position has been vacant since October 2013, in
my opinion, Mr. Chairman, for too long. I think it is an
important position, one charged with significant
responsibilities in Indian gaming, a $28 billion industry. And
yet the White House didn't even send this nomination to the
Senate until July, 2014, a nine-month delay. Despite repeated
inquiries by our staff, the Administration didn't even submit
the required paperwork until September of 2014. So I appreciate
your diligence, Mr. Chairman, in considering this nomination,
and I hope that in the future the President will ensure that
nominations of qualified candidates and the completed paperwork
are submitted to the Committee in a timely manner.
But despite the delays, I do want to welcome our nominee,
Mr. Chaudhuri, and your family. Congratulations on the
nomination. As we discussed in our Committee hearings in July
of this year, there should be a strong regulatory enforcement
in Indian gaming, and the industry needs integrity and
accountability. I am confident that you intend to ensure these
principles are carried out in this industry. I appreciate your
testimony and being here. I know you have a young son you said
might be unruly for the Committee, but please tell him that we
are very proud of his father and this nomination.
Mr. Chaudhuri. Thank you, sir.
Senator Barrasso. The gaming industry, as I said, needs
integrity, as does the agency regulating the industry. The
agency officials should comply with all applicable laws and
ethics rules and be cognizant of public perceptions of agency
integrity. The Committee must also examine potential conflicts
of interest for nominees that we consider. I understand that
you have been successful at gaming, personally have won
significant amounts of money in past poker tournaments. And so
I just ask that you please explain how you are going to avoid
any conflicts of interest relative to your personal interests
and success, including perhaps addressing any public perception
there might be if you are confirmed by the agency.
Mr. Chaudhuri. Thank you, Vice Chairman. I think the big
win that you may be referring to is the win that took place I
think nine and a half years ago, or nine years ago, somewhere
in that range, back in 2005. I enjoyed that. But frankly, I am
very mindful of the importance of preserving public perception
and public faith in a regulatory body. So I would never engage
in gaming in a facility that we operate anyway. But just in an
abundance of caution on my own, I have chosen, for the entire
time I remain at NIGC, I am not going to be conducting any
gaming activity personally in any facility. I am very sensitive
to the perception issues that you raised.
Senator Barrasso. In our Committee hearing back in July, I
think it was July 23rd, we talked and you testified that the
Assistance, Compliance, Enforcement initiative, the ACE
initiative, would be a guiding principle in fulfilling your
agency's regulatory role. You had mentioned a few metrics, such
as a number of trainings conducted by the agency in place of,
to measure the effectiveness of the ACE initiative. I know the
Government Accountablity Office is also looking at this
initiative.
In the event that the initiative is not successful, then I
ask, what will you do if confirmed to ensure that the agency
still will be effective in fulfilling its regulatory role?
Mr. Chaudhuri. Thank you, Vice Chairman. Under IGRA,
compliance is the goal. It is the goal of our agency as well as
it is the goal of Indian Country regulators, tribes and tribal
regulatory bodies. Whatever gets us there most effectively is
what is important.
I am convinced, based on everything that I have seen and my
experience with Indian Country, collaborative work on the front
end is the most efficient way to get there. Frankly, with the
over 5,400 tribal regulators in the field who also have an
interest in preserving and protecting the Indian Gaming
Regulatory Agency, to me it just makes sense to leverage those
relationships in a collaborative fashion.
That said, at the same time, a line of one of my favorite
poems, the author is kind of a mixed bag, but a line from that
poem is, ``to dream and not make dreams your master, to think
and not make thoughts your aim,'` the point is, I am practical.
Whatever gets us to compliance, I am willing to tweak as time
goes by. That said, I don't think working hand in hand with
tribes to get to compliance is by any means an impossible
dream. I am convinced we will get there. We are getting there
and we have been getting there.
Senator Barrasso. Thank you, Mr. Chairman.
The Chairman. Thank you, Senator Barrasso.
I will take a little bit of Chairman privilege here and
say, we have one more hearing next week, but Tim Johnson, you
have been great on this Committee. We thank you for your
leadership and we thank you for your service.
Senator Johnson. Mr. Chaudhuri, one of the responsibilities
for the NIGC is to ensure that tribes are recipients of gaming
revenue. How does NIGC monitor this aspect of tribal gaming
operations?
Mr. Chaudhuri. Thank you, sir. And thank you so much for
your service to the Nation all these years. I was a little
upset with my father that he didn't tell me about that
connection until the courtesy meeting you were so generous to
extend. So thank you very much.
Yes, ensuring that tribes are the primary beneficiaries of
gaming is a fundamental pillar of the Indian Gaming Regulatory
Act. We do that in a number of ways. We are very attuned and
receptive to inquiries that come in from the field about the
use of gaming revenue. However, our roles, we start and end
with IGRA. Our responsibilities, we don't issue revenue
allocation plans. The Department of the Interior does. However,
we do have an oversight responsibility to track the use of
revenues and we do that through information coming to us
through site visits and through our positive connections to
tribal regulators.
Senator Johnson. Looking forward, what will be some of the
top issues facing Indian gaming and how will you approach each
of those issues?
Mr. Chaudhuri. Thank you, sir. Let me expand on technology
a little bit. Not only have tribes been technological
innovators, but they have played a major role in developing
protective technologies in the field. A major thrust of the
front end work that we do in terms of working with tribes
before there are regulatory issues that come into play involves
training. We are committed to working and providing training
and technical assistance to tribes and tribal regulators. In
order to do that, we have to have internal technology
capabilities to adequately provide those trainings.
So we are investing in internal capacity. We just upgraded
all of our infrastructure with the recent move. But we will
continue to maintain and recruit sufficient staff who can track
industry changes and provide meaningful trainings.
Senator Johnson. Can you explain how your experience
serving on tribal courts has prepared you for the role of chair
for the NIGC?
Mr. Chaudhuri. Thank you, sir. I am convinced that my
judicial service has been and will continue to be my biggest
professional asset. As a judge, you have to have a solemn
commitment to the fair and unbiased application of the law. And
you have to have a profound respect for the law and for order.
The same is true as a regulator. We have our organic law
that we are required to implement, the Indian Gaming Regulatory
Act, as well as our own regulations. My role as Chairman
involves first and foremost understanding the law, and
understanding our regulations, but implementing them and
applying them in a fair way with an eye toward the long term.
To me, my judicial background has been directly relevant and
will continue to be.
Senator Johnson. Thank you. I yield back.
The Chairman. Thank you. Senator Franken?
Senator Franken. Thank you, Mr. Chaudhuri, for your
testimony. You brought up technology a number of times. Can you
give me some overview of all the different ways that technology
impacts Indian gaming, from the technology of the games
themselves to the technology, you talked about training, to the
technologies of vulnerability to hacking? Just give me an
overview of the technological challenges that might come from
internet gambling, in terms of as a challenge to Indian gaming.
Mr. Chaudhuri. Thank you, Senator. As I mentioned, I have
been a big fan for many years in different capacities.
[Laughter.]
Mr. Chaudhuri. Thank you. In terms of technology, there are
impacts internally as an agency that I can discuss. But there
are also external impacts. First of all, on the operations side
of things, tribes have been innovators. So in terms of
developing games, developing software, developing hardware that
helps tribes meet their, or fulfill their regulatory or their
lawful potential to game, tribes have been incredible
innovators. An example my fellow Commissioner Little always
brings up is the change machines that you see in almost any
machine, an Indian gaming machine or non-Indian gaming machine.
That was developed in Indian Country.
So on the operations side, in order to maximize potential,
lawful potential, tribes innovate on a daily basis.
On the vulnerability side, in order to protect against
vulnerabilities, since gaming is a financial industry, the
protections available in existing software are, continue to be
a major source of investment for tribes and tribal regulators.
We have to track and be on top of the software that is out
there.
In terms of bureaucratically, making small tweaks to ensure
that we do our job as an agency better, we have to be on top of
technology. So for example, we just finalized a pilot project
to allow all tribes to submit fees through pay.gov. And that
was largely, we were able to do that largely because of some of
the improvements we have made in the last year to beef up our
technologies.
So operationally, in terms of maximizing profits, in terms
of minimizing vulnerabilities as well as doing our job
internally as an agency, technology affects and touches
everything we do. I would like us to be a cutting edge smaller
agency within the Federal family.
Senator Franken. Does the need to continually invest in
technology ever jeopardize the revenue going to the tribes?
Mr. Chaudhuri. Well, we can't control how tribes spend
their operational resources or even their regulators'
resources. However, my personal opinion is that it is great
bang for the buck in terms of investing in ongoing cutting edge
technology. Certainly it prevents financial leakage in an
operation and as we have seen in terms of the growth of the
industry since IGRA was passed 25 plus years ago, technology
walks hand in hand with maximizing market potential. That is my
opinion.
Senator Franken. One last question. If you ever feel that
NIGC lacks the authority or ability to properly protect the
tool of economic development for Indian Country that is
absolutely vital, I hope that you will speak up and let the
Committee know. If confirmed, will you keep this Committee
regularly updated on the state of Indian gaming, including
threats and opportunities for it?
Mr. Chaudhuri. I will absolutely commit to that, Senator,
and frankly, I would welcome and look forward to having an
ongoing dialogue with the Committee. No bill is perfect; we do
our best and I think we have wonderful tools available to us
within IGRA. And I think our remarkable team does a great job
performing its regulatory obligations. But any source of law is
worth talking about as time goes on, and I am willing to engage
in ongoing dialogue.
Senator Franken. Thank you. Thank you, Mr. Chairman.
The Chairman. Thank you. Senator Begich?
Senator Begich. Mr. Chairman, before I ask some questions
to Mr. Chaudhuri, what is the idea at this point to finish the
hearing then try to do this in the next couple weeks? Okay, so
we will see a speedy result of the operation here.
The Chairman. That is the hope.
Senator Begich. Okay. I am just, because it took us this
long to get it. I anticipate Congress, the minority and
majority will work together to move this rapidly.
The Chairman. We are not doing this for the exercise.
Senator Begich. Okay. Good. I don't really have a lot of
questions, I just want to say thank you very much for your
willingness to step up to this position even though you have
been acting, but now to be in the formal position, I think you
will do a great job. And I am a tournament poker player, so I
kind of like that you have experience around that. That gives
you a balance of approach.
But again, I won't add any more to what other members have
said. It is an important commission, to make sure that revenue
streams go to the tribes that are deserving and making sure the
gaming situation occurs correctly in the States that allow it.
As you know, our State does not allow it. But again, I want to
thank you for your willingness to participate.
And a special thank you to your family, because I know the
travel and other activities that it will require will mean time
away from your family. So I don't really have a lot of
questions, just to say thank you very much for your willingness
to do this and I look forward to seeing you approved.
Mr. Chaudhuri. Thank you Senator. Thank you for your
service to the Nation as a whole, for all of Indian Country,
but also on behalf of my family and my in-laws, on behalf of
Alaska Natives as well. Thank you.
The Chairman. Thank you, Senator Begich. I have one more
question, then if Senator Barrasso or you have additional
questions, we certainly would entertain those.
There is a push out there for Internet gaming. There are
big stakeholder decisions; big stakeholders that there could
potentially big schisms regarding Internet gaming. I would like
to know your thoughts on NIGC's role, if any, in the regulation
of Internet gaming conducted by tribes. If the tribe is
operating Internet gaming off of servers located on tribal
lands, would that fall under the tenets of IGRA?
Mr. Chaudhuri. Thank you, Chairman. Let me first say, as
the only agency in the Federal family that exclusively, or that
regulates any form of gaming, that exclusively is there, exists
to regulate gaming, we have a very specialized set of skills as
well as a very strong personnel team in place at the agency. I
am absolutely confident that we have the capacity to adjust as
necessary to any market-driven role or regulatory role that is
given to us. I have just been honored to work with our team at
the agency and I believe our team would be up for any
challenges that are thrown at us.
It is difficult to speak, and I definitely don't want to be
pre-decisional about anything, speak in the abstract about any
games that aren't before us as a commission. So whether or not
a certain activity would fall within the regulatory scope of
the NIGC, it is very fact-driven and I would hesitate to speak
generally.
However, I will say that even under the current language of
IGRA, we take our regulatory role very seriously in terms of
regulating gaming activity that takes place on Indian lands.
And so regardless of what type of gaming is at play, under the
current language of IGRA, we take our current regulatory role
very seriously.
The Chairman. So not to put words in your mouth, but if a
tribe was operating Internet gaming on servers located on
tribal land, do you believe you have the oversight?
Mr. Chaudhuri. There are different elements, and thank you
for the question, Chairman. There are different elements of
gaming that are clear under not just IGRA but supporting case
law. Where the bet is made does matter, and where a bet is made
affects part of our analysis. But without having a specific
game proposal in front of me----
The Chairman. Okay, well, let me approach it from a
different angle. There are a number of proposals that would
place primary regulation of gaming within executive departments
like Treasury or Commerce. Do you believe that tribal interests
could be protected if the regulator was in Treasury or
Commerce?
Mr. Chaudhuri. I have the upmost respect for colleagues at
Treasury and Commerce.
The Chairman. They are not being confirmed; you are.
Mr. Chaudhuri. Thank you, sir. I can speak best to the
members of our team. In addition to having a longstanding sense
of the place that gaming sits in larger national policy, we
have technical expertise within the agency that no other agency
has. We have been regulating gaming ever since the inception of
IGRA. And I would never speak to another agency's capabilities
or capacity, but I can speak to the NIGC's. And we could handle
whatever would be thrown at us, I am confident of that.
The Chairman. All right. It may be a debate that comes up
that you may be in the middle of.
Senator Barrasso, anything else?
Senator Barrasso. No, thank you, Mr. Chairman.
The Chairman. Well, with that, I want to thank you for
being here today, Mr. Chaudhuri, to consider your nomination of
Chairman of the National Indian Gaming Commission. We may issue
follow-up questions in writing and would ask for prompt
response if so, so that we can move forward with your
nomination, as Senator Begich has requested.
So with that, if there is no further comment, this
Committee hearing of Senate Indian Affairs is adjourned.
[Whereupon, at 4:38 p.m., the Committee was adjourned.]
A P P E N D I X
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