SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Common Sense Indian Gambling Reform 
Act of 2008''.

SEC. 2. CONSULTATION WITH STATE, LOCAL, AND TRIBAL GOVERNMENTS.

    Section 20 of the Indian Gaming Regulatory Act (25 U.S.C. 2719) is 
amended--
            (1) in subsection (a), by striking paragraph (2) and 
        inserting the following:
            ``(2) the Indian tribe has no reservation as of October 17, 
        1988, and the land is located in the State of Oklahoma and--
                    ``(A) is within the boundaries of the former 
                reservation of the Indian tribe, as defined by the 
                Secretary; or
                    ``(B) is contiguous to other land held in trust or 
                restricted status by the United States for the benefit 
                of the Indian tribe in the State of Oklahoma.'';
            (2) in subsection (b)--
                    (A) by redesignating paragraphs (2) and (3) as 
                paragraphs (3) and (4), respectively;
                    (B) in paragraph (4) (as redesignated by 
                subparagraph (A)), by striking ``paragraph (2)(B)'' and 
                inserting ``paragraph (3)(B)''; and
                    (C) by striking ``(b)(1) Subsection'' and all that 
                follows through clause (iii) of paragraph (1)(B) and 
                inserting the following:
    ``(b) Exceptions.--
            ``(1) In general.--
                    ``(A) Effect on community.--Subject to subparagraph 
                (B) and paragraph (2), subsection (a) shall not apply 
                to Indian lands for which the Secretary, after 
                consultation with the Indian tribe and officials of all 
                State, local, and tribal governments that have 
                jurisdiction over land located within 60 miles of the 
                Indian lands, determines that a gaming establishment on 
                that land--
                            ``(i) would be in the best interest of the 
                        Indian tribe and its members; and
                            ``(ii) taking into consideration the 
                        results of a study of the economic impact of 
                        the gaming establishment, would not have a 
                        negative economic impact, or any other negative 
                        effect, on any unit of government, business, 
                        community, or Indian tribe located within 60 
                        miles of the land.
                    ``(B) Concurrence of affected state.--For a 
                determination of the Secretary under subparagraph (A) 
                to become valid, the Governor and legislative body of 
                the State in which a gaming activity is proposed to be 
                conducted shall concur in the determination.
                    ``(C) Effect of paragraph.--This paragraph shall 
                not apply to any land on which a gaming facility is in 
                operation as of the date of enactment of the Common 
                Sense Indian Gambling Reform Act of 2008.
            ``(2) Primary nexus.--
                    ``(A) In general.--The land described in paragraph 
                (1) shall be land--
                            ``(i) within a State in which the Indian 
                        tribe is primarily located, as determined by 
                        the Secretary; and
                            ``(ii) on which the primary geographic, 
                        social, and historical nexus to land of the 
                        Indian tribe is located, as determined in 
                        accordance with subparagraph (B).
                    ``(B) Determination.--For purposes of subparagraph 
                (A), a geographic, social, and historical nexus to land 
                of an Indian tribe shall exist with respect to land 
                that is--
                            ``(i)(I) owned by, or held in trust by the 
                        United States for the benefit of, an Indian 
                        tribe;
                            ``(II) located within the boundaries of--
                                    ``(aa) the geographical area, as 
                                designated by the Secretary, in which 
                                financial assistance and social service 
                                programs are provided to the Indian 
                                tribe, including land on or contiguous 
                                to a reservation; or
                                    ``(bb) the geographical area 
                                designated by the Indian tribe during 
                                the Federal acknowledgment process of 
                                the Indian tribe as the area in which 
                                more than 50 percent of the members of 
                                the Indian tribe reside in a group 
                                composed exclusively or almost 
                                exclusively of members of the Indian 
                                tribe; and
                            ``(III) located within the geographical 
                        area in which the Indian tribe demonstrates 
                        that the Indian tribe has historically resided, 
                        as determined by the Secretary; or
                            ``(ii) located--
                                    ``(I) in a State other than the 
                                State of Oklahoma; and
                                    ``(II) within the boundaries of the 
                                last recognized reservation of the 
                                Indian tribe in any State in which the 
                                Indian tribe is located as of the date 
                                on which a determination under this 
                                subparagraph is made.'';
            (3) by redesignating subsections (c) and (d) as subsections 
        (d) and (e), respectively; and
            (4) by inserting after subsection (b) the following:
    ``(c) Contiguous Land Requirement.--Notwithstanding any other 
provision of this Act, an Indian tribe shall conduct any gaming 
activity subject to regulation under this Act on 1 contiguous parcel of 
Indian lands.''.

SEC. 3. TRIBAL GAMING ORDINANCES.

    Section 11 of the Indian Gaming Regulatory Act (25 U.S.C. 2710) is 
amended--
            (1) in subsection (b)(1)--
                    (A) in subparagraph (A), by striking ``, and'' and 
                inserting a semicolon;
                    (B) in subparagraph (B), by striking the period at 
                the end and inserting ``; and''; and
                    (C) by adding at the end the following:
                    ``(C) the class II gaming is conducted--
                            ``(i) on lands that were Indian lands 
                        before the date of enactment of this 
                        subparagraph; or
                            ``(ii) on land taken into trust for the 
                        benefit of the Indian tribe after the date of 
                        enactment of this subparagraph, but only if the 
                        application of the Indian tribe requesting that 
                        the land be taken into trust for the benefit of 
                        the Indian tribe stated the intent of the 
                        Indian tribe to conduct class II gaming 
                        activities on the land.''; and
            (2) in subsection (d)--
                    (A) in paragraph (1)--
                            (i) in subparagraph (A)--
                                    (I) in clause (i), by striking 
                                ``such lands,'' and inserting ``the 
                                Indian lands;'';
                                    (II) in clause (ii), by striking 
                                ``, and'' and inserting ``; and''; and
                                    (III) in clause (iii), by striking 
                                the comma at the end and inserting a 
                                semicolon;
                            (ii) in subparagraph (B), by striking ``, 
                        and'' and inserting a semicolon;
                            (iii) in subparagraph (C), by striking the 
                        period at the end and inserting ``; and''; and
                            (iv) by adding at the end the following:
                    ``(D) conducted--
                            ``(i) on lands that were Indian lands 
                        before the date of enactment of this 
                        subparagraph; or
                            ``(ii) on land taken into trust for the 
                        benefit of the Indian tribe after the date of 
                        enactment of this subparagraph, but only if the 
                        application of the Indian tribe requesting that 
                        the land be taken into trust for the benefit of 
                        the Indian tribe stated the intent of the 
                        Indian tribe to conduct class III gaming 
                        activities on the land.''; and
                    (B) by adding at the end the following:
            ``(10) Definition of state.--In this subsection, the term 
        `State' means the Governor of the State and the legislative 
        body of the State.''.

SEC. 4. INVESTIGATION AND APPROVAL.

    (a) Powers of the Chairman.--Section 6(a) of the Indian Gaming 
Regulatory Act (25 U.S.C. 2705(a)) is amended--
            (1) in paragraph (3), by striking ``and'' at the end;
            (2) in paragraph (4), by striking the period at the end and 
        inserting ``; and''; and
            (3) by adding at the end the following:
            ``(5) approve or disapprove the involvement in a gaming 
        activity subject to regulation by the Commission of any 1 of 
        the 10 persons or entities that have the highest financial 
        interest in the gaming activity, as identified by the 
        Commission under section 7(b)(3)(A).''.
    (b) Powers of the Commission.--Section 7(b) of the Indian Gaming 
Regulatory Act (25 U.S.C. 2706(b)) is amended--
            (1) in the matter preceding paragraph (1), by inserting 
        ``shall have the authority'' after ``Commission'';
            (2) in paragraphs (1), (2), and (10), by striking ``shall'' 
        each place it appears and inserting ``to'';
            (3) in paragraph (2), by striking ``is conducted'' and 
        inserting ``or class III gaming is conducted to ensure 
        compliance with this Act (including regulations promulgated 
        pursuant to paragraph (10))'';
            (4) by striking paragraph (3) and inserting the following:
            ``(3)(A) to identify the 10 persons or entities that have 
        the highest financial interest (including outstanding loans, 
        debt-based financing, and other financial interests) in each 
        gaming activity subject to regulation by the Commission; and
            ``(B) to conduct a background investigation of--
                    ``(i) each of the persons and entities identified 
                under subparagraph (A); and
                    ``(ii) any other person or entity, as the 
                Commission determines to be appropriate;'';
            (5) in paragraphs (4) through (9), by striking ``may'' each 
        place it appears and inserting ``to'';
            (6) in paragraph (4), by inserting ``and class III gaming'' 
        after ``class II gaming''; and
            (7) in paragraph (10), by inserting ``, including 
        regulations to address minimum internal control standards for 
        class II gaming and class III gaming'' after ``this Act''.
    (c) Tribal Gaming Ordinances.--Section 11(b)(2)(F) of the Indian 
Gaming Regulatory Act (25 U.S.C. 2710(b)(2)(F)) is amended by striking 
clause (i) and inserting the following:
                            ``(i) ensures that--
                                    ``(I) a background investigation 
                                will be conducted by the Commission 
                                on--
                                            ``(aa) each tribal gaming 
                                        commissioner;
                                            ``(bb) key tribal gaming 
                                        employees, as determined by the 
                                        Commission;
                                            ``(cc) primary management 
                                        officials; and
                                            ``(dd) key employees of the 
                                        gaming enterprise; and
                                    ``(II) oversight of the individuals 
                                described in subclause (I) will be 
                                conducted on an ongoing basis; and''.
    (d) Commission Funding.--Section 18(a)(2)(B) of the Indian Gaming 
Regulatory Act (25 U.S.C. 2717(a)(2)(B)) is amended--
            (1) by indenting the subparagraph appropriately; and
            (2) by striking ``0.080 percent'' and all that follows 
        through the end of the subparagraph and inserting 
        ``$16,000,000.''.

SEC. 5. CHANGING USE OF INDIAN LANDS.

    The Indian Gaming Regulatory Act (25 U.S.C. 2701 et seq.) is 
amended--
            (1) by redesignating sections 21 through 24 as sections 22 
        through 25, respectively; and
            (2) by inserting after section 20 the following:

``SEC. 21. CHANGING USE OF INDIAN LANDS.

    ``Before an Indian tribe uses any Indian lands for purposes of 
class II gaming or class III gaming, the Indian tribe shall--
            ``(1) submit to the Secretary an environmental impact 
        statement that the Secretary determines to be in accordance 
        with the National Environmental Policy Act of 1969 (42 U.S.C. 
        4321 et seq.) relating to that use; and
            ``(2) obtain the consent of the Secretary with respect to 
        the change in use of the Indian lands.''.

SEC. 6. EFFECT OF ACT.

    This Act, and the amendments made by this Act, shall not affect any 
compact or other agreement relating to gaming subject to regulation 
under the Indian Gaming Regulatory Act (25 U.S.C. 2701 et seq.) in 
existence on the date of enactment of this Act.
Common Sense Indian Gambling Reform Act of 2008 - Amends the Indian Gaming Regulatory Act to revise requirements for the exemption of Indian land from gaming prohibitions.

Requires: (1) the governor and the legislative body of the state in which a gaming activity is proposed to concur with the Secretary of the Interior's determination that the activity would be in the best interest of the tribe and not have a negative impact; and (2) the land to be land within a state in which the tribe is primarily located and land on which the primary geographic, social, and historical nexus is located.

Adds as conditions for class II or class III gaming that it be conducted on: (1) lands that were Indian lands before enactment of this Act; or (2) land taken into trust for an Indian tribe after enactment, but only if the application requesting that the land be taken into trust stated the tribe's intent to conduct such gaming activities on the land.

Authorizes the Chairman of the National Indian Gaming Commission to: (1) approve the involvement in a gaming activity of any one of the ten persons or entities that have the highest financial interest in the activity; (2) investigate gaming activities and conduct background investigations of such persons or entities; and (3) audit and inspect class III gaming on Indian lands. Requires tribal ordinances to provide the Commission will conduct background investigations on tribal gaming commissioners, key tribal gaming employees, primary management officials, and key employees of the gaming enterprise.

Revises the cap on the total fees to be paid to the Commission during any fiscal year by gaming operations conducting regulated class II and III gaming activities.

Requires Indian tribes, before using lands for class II or III gaming, to: (1) submit to the Secretary an environmental impact statement; and (2) obtain the Secretary's consent with respect to the change in use of the lands.
A bill to make technical corrections to the Indian Gaming Regulatory Act, and for other purposes.