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.
§ 2713 TITLE 25—INDIANS Page 636

(b) Approval or modification of ordinance or resolution

(1) By no later than the date that is 90 days

after the date on which an ordinance or resolution authorizing class II gaming or class III

gaming is submitted to the Chairman pursuant

to subsection (a) of this section, the Chairman

shall review such ordinance or resolution to determine if it conforms to the requirements of

section 2710(b) of this title.

(2) If the Chairman determines that an ordinance or resolution submitted under subsection

(a) of this section conforms to the requirements

of section 2710(b) of this title, the Chairman

shall approve it.

(3) If the Chairman determines that an ordinance or resolution submitted under subsection

(a) of this section does not conform to the requirements of section 2710(b) of this title, the

Chairman shall provide written notification of

necessary modifications to the Indian tribe

which shall have not more than 120 days to bring

such ordinance or resolution into compliance.

(c) Approval or modification of management contract

(1) Within 180 days after the submission of a

management contract, including all collateral

agreements, pursuant to subsection (a) of this

section, the Chairman shall subject such contract to the requirements and process of section

2711 of this title.

(2) If the Chairman determines that a management contract submitted under subsection (a) of

this section, and the management contractor

under such contract, meet the requirements of

section 2711 of this title, the Chairman shall approve the management contract.

(3) If the Chairman determines that a contract

submitted under subsection (a) of this section,

or the management contractor under a contract

submitted under subsection (a) of this section,

does not meet the requirements of section 2711

of this title, the Chairman shall provide written

notification to the parties to such contract of

necessary modifications and the parties shall

have not more than 120 days to come into compliance. If a management contract has been approved by the Secretary prior to October 17,

1988, the parties shall have not more than 180

days after notification of necessary modifications to come into compliance.

(Pub. L. 100–497, §13, Oct. 17, 1988, 102 Stat. 2481.)

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 2710, 2713, 2714

of this title.

§ 2713. Civil penalties

(a) Authority; amount; appeal; written complaint

(1) Subject to such regulations as may be prescribed by the Commission, the Chairman shall

have authority to levy and collect appropriate

civil fines, not to exceed $25,000 per violation,

against the tribal operator of an Indian game or

a management contractor engaged in gaming for

any violation of any provision of this chapter,

any regulation prescribed by the Commission

pursuant to this chapter, or tribal regulations,

ordinances, or resolutions approved under section 2710 or 2712 of this title.

(2) The Commission shall, by regulation, provide an opportunity for an appeal and hearing

before the Commission on fines levied and collected by the Chairman.

(3) Whenever the Commission has reason to believe that the tribal operator of an Indian game

or a management contractor is engaged in activities regulated by this chapter, by regulations prescribed under this chapter, or by tribal

regulations, ordinances, or resolutions, approved

under section 2710 or 2712 of this title, that may

result in the imposition of a fine under subsection (a)(1) of this section, the permanent closure of such game, or the modification or termination of any management contract, the Commission shall provide such tribal operator or

management contractor with a written complaint stating the acts or omissions which form

the basis for such belief and the action or choice

of action being considered by the Commission.

The allegation shall be set forth in common and

concise language and must specify the statutory

or regulatory provisions alleged to have been

violated, but may not consist merely of allegations stated in statutory or regulatory language.

(b) Temporary closure; hearing

(1) The Chairman shall have power to order

temporary closure of an Indian game for substantial violation of the provisions of this chapter, of regulations prescribed by the Commission

pursuant to this chapter, or of tribal regulations, ordinances, or resolutions approved under

section 2710 or 2712 of this title.

(2) Not later than thirty days after the issuance by the Chairman of an order of temporary

closure, the Indian tribe or management contractor involved shall have a right to a hearing

before the Commission to determine whether

such order should be made permanent or dissolved. Not later than sixty days following such

hearing, the Commission shall, by a vote of not

less than two of its members, decide whether to

order a permanent closure of the gaming operation.

(c) Appeal from final decision

A decision of the Commission to give final approval of a fine levied by the Chairman or to

order a permanent closure pursuant to this section shall be appealable to the appropriate Federal district court pursuant to chapter 7 of title

5.

(d) Regulatory authority under tribal law

Nothing in this chapter precludes an Indian

tribe from exercising regulatory authority provided under tribal law over a gaming establishment within the Indian tribe’s jurisdiction if

such regulation is not inconsistent with this

chapter or with any rules or regulations adopted

by the Commission.

(Pub. L. 100–497, §14, Oct. 17, 1988, 102 Stat. 2482.)

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 2705, 2706, 2714

of this title.

§ 2714. Judicial review

Decisions made by the Commission pursuant

to sections 2710, 2711, 2712, and 2713 of this title