PART 531—CONTENT OF MANAGEMENT CONTRACTS Authority: 25 U.S.C. 81, 2706(b)(10), 2710(d)(9), 2711. Source: 58 FR 5828, Jan. 22, 1993, unless otherwise noted. § 531.1 Required provisions. Management contracts shall conform to all of the requirements contained in this section in the manner indicated. (a) Governmental authority. (b) Assignment of responsibilities. (1) Maintaining and improving the gaming facility; (2) Providing operating capital; (3) Establishing operating days and hours; (4) Hiring, firing, training, and promoting employees; (5) Maintaining the gaming operation's books and records; (6) Preparing the gaming operation's financial statements and reports; (7) Paying for the services of the independent auditor engaged pursuant to § 571.12 of this chapter; (8) Hiring and supervising security personnel; (9) Providing fire protection services; (10) Setting advertising budget and placing advertising; (11) Paying bills and expenses; (12) Establishing and administering employment practices; (13) Obtaining and maintaining insurance coverage, including coverage of public liability and property loss or damage; (14) Complying with all applicable provisions of the Internal Revenue Code; (15) Paying the cost of any increased public safety services; and (16) If applicable, supplying the Commission with all information necessary for the Commission to comply with the regulations of the Commission issued pursuant to the National Environmental Policy Act (NEPA). (c) Accounting. (1) Include an adequate system of internal accounting controls; (2) Permit the preparation of financial statements in accordance with generally accepted accounting principles; (3) Be susceptible to audit; (4) Allow a gaming operation, the tribe, and the Commission to calculate the annual fee under § 514.1 of this chapter; (5) Permit the calculation and payment of the manager's fee; and (6) Provide for the allocation of operating expenses or overhead expenses among the tribe, the tribal gaming operation, the contractor, and any other user of shared facilities and services. (d) Reporting. (e) Access. (1) The right to verify the daily gross revenues and income from the gaming operation; and (2) Access to any other gaming-related information the tribe deems appropriate. (f) Guaranteed payment to tribe. (g) Development and construction costs. (h) Term limits. (i) Compensation. (1) Not more than thirty (30) percent of the net revenues of the gaming operation if the Chairman determines that such percentage is reasonable considering the circumstances; or (2) Not more than forty (40) percent of the net revenues if the Chairman is satisfied that the capital investment required and income projections for the gaming operation require the additional fee. (j) Termination provisions. (k) Dispute provisions. (1) The management contractor and customers, consistent with the procedures in a tribal ordinance; (2) The management contractor and the tribe; and (3) The management contractor and the gaming operation employees. (l) Assignments and subcontracting. (m) Ownership interests. (n) Effective date. [74 FR 36934, July 27, 2009, as amended at 80 FR 31994, June 5, 2015] § 531.2 Prohibited provisions. A management contract shall not transfer or, in any other manner, convey any interest in land or other real property, unless specific statutory authority exists and unless clearly specified in writing in the contract.