Under IGRA, a tribe may make per caps to its members only in accordance with a plan that has been approved by the Interior Secretary, and the the tribe must follow that plan. The Yakama Nation submitted its per capita payment plan (called a "revenue allocation plan" or RAP) back in December. The day after submitting their plan, the tribal council discussed the possibility of the stimulus payments, and apparently made the payments a week or so later. But Interior didn't approve the RAP until February.
Earlier this week, the NIGC issued a formal Notice of Violation (or NOV; lawyers love acronyms) to the Nation. It found that the payments were made without an approved RAP, therefore violating IGRA. The Nation contended that economic stimulus payments could benefit the tribe as a whole because members would put the money back into the tribal and local economies. Arguably, that might make the payments fall within IGRA's provision allowing tribes to use gaming revenue to "promote tribal economic development" or to "provide for the general welfare of the Indian tribe and its members." The NIGC didn't buy the argument, saying that the payments weren't made as part of a bona fide tribal economic development or social program.
So now the Nation faces the possibility of fines of up to $25,000 per violation per day. The Nation has 15 days to submit additional information to the NIGC Chair, or 30 days to appeal to the full Commission.
Read more: The NIGC's NOV, Legends Casino Faces Fines Over $20.4M Payout to Members, Yakima Herald Republic
