§ 2711 TITLE 25—INDIANS Page 634

duct of gaming activities on the Indian lands

subject to the jurisdiction of such Indian tribe

within the 60-day period provided in the order of

a court issued under clause (iii), the Indian tribe

and the State shall each submit to a mediator

appointed by the court a proposed compact that

represents their last best offer for a compact.

The mediator shall select from the two proposed

compacts the one which best comports with the

terms of this chapter and any other applicable

Federal law and with the findings and order of

the court.

(v) The mediator appointed by the court under

clause (iv) shall submit to the State and the Indian tribe the compact selected by the mediator

under clause (iv).

(vi) If a State consents to a proposed compact

during the 60-day period beginning on the date

on which the proposed compact is submitted by

the mediator to the State under clause (v), the

proposed compact shall be treated as a TribalState compact entered into under paragraph (3).

(vii) If the State does not consent during the

60-day period described in clause (vi) to a proposed compact submitted by a mediator under

clause (v), the mediator shall notify the Secretary and the Secretary shall prescribe, in consultation with the Indian tribe, procedures—

(I) which are consistent with the proposed

compact selected by the mediator under clause

(iv), the provisions of this chapter, and the relevant provisions of the laws of the State, and

(II) under which class III gaming may be

conducted on the Indian lands over which the

Indian tribe has jurisdiction.

(8)(A) The Secretary is authorized to approve

any Tribal-State compact entered into between

an Indian tribe and a State governing gaming on

Indian lands of such Indian tribe.

(B) The Secretary may disapprove a compact

described in subparagraph (A) only if such compact violates—

(i) any provision of this chapter,

(ii) any other provision of Federal law that

does not relate to jurisdiction over gaming on

Indian lands, or

(iii) the trust obligations of the United

States to Indians.

(C) If the Secretary does not approve or disapprove a compact described in subparagraph

(A) before the date that is 45 days after the date

on which the compact is submitted to the Secretary for approval, the compact shall be considered to have been approved by the Secretary,

but only to the extent the compact is consistent

with the provisions of this chapter.

(D) The Secretary shall publish in the Federal

Register notice of any Tribal-State compact

that is approved, or considered to have been approved, under this paragraph.

(9) An Indian tribe may enter into a management contract for the operation of a class III

gaming activity if such contract has been submitted to, and approved by, the Chairman. The

Chairman’s review and approval of such contract shall be governed by the provisions of subsections (b), (c), (d), (f), (g), and (h) of section

2711 of this title.

(e) Approval of ordinances

For purposes of this section, by not later than

the date that is 90 days after the date on which

any tribal gaming ordinance or resolution is

submitted to the Chairman, the Chairman shall

approve such ordinance or resolution if it meets

the requirements of this section. Any such ordinance or resolution not acted upon at the end of

that 90-day period shall be considered to have

been approved by the Chairman, but only to the

extent such ordinance or resolution is consistent with the provisions of this chapter.

(Pub. L. 100–497, §11, Oct. 17, 1988, 102 Stat. 2472.)

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 1775b, 2703 of

this title.

§ 2711. Management contracts

(a) Class II gaming activity; information on operators

(1) Subject to the approval of the Chairman,

an Indian tribe may enter into a management

contract for the operation and management of a

class II gaming activity that the Indian tribe

may engage in under section 2710(b)(1) of this

title, but, before approving such contract, the

Chairman shall require and obtain the following

information:

(A) the name, address, and other additional

pertinent background information on each

person or entity (including individuals comprising such entity) having a direct financial

interest in, or management responsibility for,

such contract, and, in the case of a corporation, those individuals who serve on the board

of directors of such corporation and each of its

stockholders who hold (directly or indirectly)

10 percent or more of its issued and outstanding stock;

(B) a description of any previous experience

that each person listed pursuant to subparagraph (A) has had with other gaming contracts

with Indian tribes or with the gaming industry

generally, including specifically the name and

address of any licensing or regulatory agency

with which such person has had a contract relating to gaming; and

(C) a complete financial statement of each

person listed pursuant to subparagraph (A).

(2) Any person listed pursuant to paragraph

(1)(A) shall be required to respond to such written or oral questions that the Chairman may

propound in accordance with his responsibilities

under this section.

(3) For purposes of this chapter, any reference

to the management contract described in paragraph (1) shall be considered to include all collateral agreements to such contract that relate

to the gaming activity.

(b) Approval

The Chairman may approve any management

contract entered into pursuant to this section

only if he determines that it provides at least—

(1) for adequate accounting procedures that

are maintained, and for verifiable financial reports that are prepared, by or for the tribal

governing body on a monthly basis;

(2) for access to the daily operations of the

gaming to appropriate tribal officials who

shall also have a right to verify the daily gross

revenues and income made from any such tribal gaming activity;
Page 635 TITLE 25—INDIANS § 2712

(3) for a minimum guaranteed payment to

the Indian tribe that has preference over the

retirement of development and construction

costs;

(4) for an agreed ceiling for the repayment of

development and construction costs;

(5) for a contract term not to exceed five

years, except that, upon the request of an Indian tribe, the Chairman may authorize a contract term that exceeds five years but does not

exceed seven years if the Chairman is satisfied

that the capital investment required, and the

income projections, for the particular gaming

activity require the additional time; and

(6) for grounds and mechanisms for terminating such contract, but actual contract termination shall not require the approval of the

Commission.

(c) Fee based on percentage of net revenues

(1) The Chairman may approve a management

contract providing for a fee based upon a percentage of the net revenues of a tribal gaming

activity if the Chairman determines that such

percentage fee is reasonable in light of surrounding circumstances. Except as otherwise

provided in this subsection, such fee shall not

exceed 30 percent of the net revenues.

(2) Upon the request of an Indian tribe, the

Chairman may approve a management contract

providing for a fee based upon a percentage of

the net revenues of a tribal gaming activity that

exceeds 30 percent but not 40 percent of the net

revenues if the Chairman is satisfied that the

capital investment required, and income projections, for such tribal gaming activity require

the additional fee requested by the Indian tribe.

(d) Period for approval; extension

By no later than the date that is 180 days after

the date on which a management contract is

submitted to the Chairman for approval, the

Chairman shall approve or disapprove such contract on its merits. The Chairman may extend

the 180-day period by not more than 90 days if

the Chairman notifies the Indian tribe in writing of the reason for the extension. The Indian

tribe may bring an action in a United States district court to compel action by the Chairman if

a contract has not been approved or disapproved

within the period required by this subsection.

(e) Disapproval

The Chairman shall not approve any contract

if the Chairman determines that—

(1) any person listed pursuant to subsection

(a)(1)(A) of this section—

(A) is an elected member of the governing

body of the Indian tribe which is the party

to the management contract;

(B) has been or subsequently is convicted

of any felony or gaming offense;

(C) has knowingly and willfully provided

materially important false statements or information to the Commission or the Indian

tribe pursuant to this chapter or has refused

to respond to questions propounded pursuant

to subsection (a)(2) of this section; or

(D) has been determined to be a person

whose prior activities, criminal record if

any, or reputation, habits, and associations

pose a threat to the public interest or to the

effective regulation and control of gaming,

or create or enhance the dangers of unsuitable, unfair, or illegal practices, methods,

and activities in the conduct of gaming or

the carrying on of the business and financial

arrangements incidental thereto;

(2) the management contractor has, or has

attempted to, unduly interfere or influence for

its gain or advantage any decision or process

of tribal government relating to the gaming

activity;

(3) the management contractor has deliberately or substantially failed to comply with

the terms of the management contract or the

tribal gaming ordinance or resolution adopted

and approved pursuant to this chapter; or

(4) a trustee, exercising the skill and diligence that a trustee is commonly held to,

would not approve the contract.

(f) Modification or voiding

The Chairman, after notice and hearing, shall

have the authority to require appropriate contract modifications or may void any contract if

he subsequently determines that any of the provisions of this section have been violated.

(g) Interest in land

No management contract for the operation

and management of a gaming activity regulated

by this chapter shall 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 said contract.

(h) Authority

The authority of the Secretary under section

81 of this title, relating to management contracts regulated pursuant to this chapter, is

hereby transferred to the Commission.

(i) Investigation fee

The Commission shall require a potential contractor to pay a fee to cover the cost of the investigation necessary to reach a determination

required in subsection (e) of this section.

(Pub. L. 100–497, §12, Oct. 17, 1988, 102 Stat. 2479.)

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 2704, 2705, 2710,

2712, 2714 of this title.

§ 2712. Review of existing ordinances and contracts

(a) Notification to submit

As soon as practicable after the organization

of the Commission, the Chairman shall notify

each Indian tribe or management contractor

who, prior to October 17, 1988, adopted an ordinance or resolution authorizing class II gaming

or class III gaming or entered into a management contract, that such ordinance, resolution,

or contract, including all collateral agreements

relating to the gaming activity, must be submitted for his review within 60 days of such notification. Any activity conducted under such ordinance, resolution, contract, or agreement shall

be valid under this chapter, or any amendment

made by this chapter, unless disapproved under

this section.