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[Congressional Bills 103th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4787 Introduced in House (IH)]

103d CONGRESS
  2d Session
                                H. R. 4787

   To amend the Indian Gaming Regulatory Act, and for other purposes.

_______________________________________________________________________

                    IN THE HOUSE OF REPRESENTATIVES

                             July 19, 1994

  Mr. Torres introduced the following bill; which was referred to the 
                     Committee on Natural Resources

_______________________________________________________________________

                                 A BILL

 
   To amend the Indian Gaming Regulatory Act, and for other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE; REFERENCE.

    (a) Short Title.--This Act may be cited as the ``Indian Gaming 
Regulatory Act Amendments of 1994''.
    (b) Reference.--Except as otherwise expressly provided, whenever in 
this Act an amendment or repeal is expressed in terms of an amendment 
to, or repeal of, a section or other provision, the reference shall be 
considered to be made to a section or other provision of the Indian 
Gaming Regulatory Act (25 U.S.C. 2701 et seq.).

SEC. 2. DEFINITIONS.

    (a) Class II Gaming.--(1) Clause (i) of section 4(7)(A) (25 U.S.C. 
2703(7)(A)) is amended--
            (A) by striking ``(if played in the same location)''; and
            (B) by striking ``bingo, and'' and inserting ``bingo 
        (whether or not electronic, computer, or other technologic aids 
        are used in connection therewith so long as the fundamental 
        characteristics of the game remain the same), and''.
    (2) Clause (ii) of section 4(7)(A) (25 U.S.C. 2703(7)(A)) is 
amended by striking ``that--'' and all that follows through ``such card 
games.'' at the end thereof and inserting a period.
    (3) Clause (ii) of section 4(7)(B) (25 U.S.C. 2703(7)(B)) is 
amended by inserting ``, except electronic or technological aids used 
in connection with class II games,'' after ``game of chance''.
    (4) Subparagraph (C) of section 4(7) (25 U.S.C. 2703(7)) is amended 
by striking ``Chairman'' and inserting ``Commission''.
    (5) Paragraph (7) of section 4 (25 U.S.C. 2703) is amended by 
striking subparagraphs (D), (E), and (F).
    (6) Paragraph (8) of section 4 (25 U.S.C. 2703) is amended by 
inserting at the end ``and means manufacturing and assembly of gaming 
devices (defined as gambling devices by section 5 of the Act of January 
2, 1951 (15 U.S.C. 1175)).''.
    (b) Compact; Electronic Facsimile.--Section 4 of the Act (25 U.S.C. 
2703) is amended by adding at the end the following new paragraphs:
            ``(11) The term `Compact' means the regulatory regime for 
        operating class III gaming entered into by a tribe and the 
        Secretary.
            ``(12) The term `electronic facsimile' means a copy of some 
        or all of the fundamental elements of a game, where the 
        electronic or electromechanical device alters the game rather 
        than simply electronically replicating the fundamental elements 
        of a game.''.
    (c) Section 6 of Public Law 101-301.--Section 6 of Public Law 101-
301 (25 U.S.C. 2703 note; 104 Stat. 209) is repealed.

SEC. 3. POWERS OF THE CHAIRMAN.

    Section 6(b) of the Act (25 U.S.C. 2705(b)) is amended to read as 
follows:
    ``(b) Prior to taking any action set forth in subsection (a) of 
this section, the Chairman shall, in good faith, consult with the Tribe 
which has jurisdiction over the gaming activity in dispute and attempt 
to resolve the dispute in a manner that avoids such actions. Only after 
the Commission has concluded that cooperative resolution has been 
adequately pursued and that further consultation would be futile, may 
the Chairman take such actions.''.

SEC. 4. POWERS OF THE COMMISSION.

    Section 7 (25 U.S.C. 2706) is amended--
            (1) in subsection (a)(2), by inserting ``appropriate but 
        not punitive'' after ``collection of'';
            (2) in subsections (b)--
                    (A) in paragraph (1), by inserting ``and class III 
                gaming, where a Compact so provides, where gaming is'' 
                after ``class II gaming''; and
                    (B) in paragraph (2), by inserting ``and class III 
                gaming, where a Compact so provides, where gaming'' 
                after ``class II gaming''; and
            (3) by striking subsection (c).

SEC. 5. INTERIM AUTHORITY TO REGULATE GAMING.

    Section 10 of the Act (25 U.S.C. 2709) is repealed.

SEC. 6. TRIBAL GAMING ORDINANCES.

    (a) Class II Gaming.--Subsection (b) of section 11 (25 U.S.C. 2710) 
is amended by amending subparagraph (A) of paragraph (4) to read as 
follows:
    ``(A) A tribal ordinance or resolution may provide for the 
licensing or regulation of Indian charitable class II gaming activities 
on Indian lands up to the same level and scope as permitted by tribal 
class II gaming. A tribal ordinance or resolution may provide for the 
licensing or regulation of class II gaming activities owned by any 
person or entity other than the Indian tribe and conducted on Indian 
lands, only if the tribal licensing requirements include the 
requirements described in the subclauses of subparagraph (B)(i) and are 
at least as restrictive as those established by State law governing 
similar gaming within the jurisdiction of the State within which such 
Indian lands are located.''.
    (b) Regulation of Class II Gaming.--Subsection (c)(3) of section 11 
(25 U.S.C. 2710) is amended by inserting ``, whether by management 
contract or otherwise,'' after ``class II gaming activity'' in the 
matter preceding subparagraph (A).
    (c) Class III Gaming.--Section 11(d) (25 U.S.C. 2710(d)) is 
amended--
            (1) in paragraph (1), by amending subparagraphs (B) and (C) 
        to read as follows:
            ``(B) located in a State where the requirements of 
        paragraphs (6)(A) and (B) are satisfied and the gaming activity 
        is eligible for inclusion in a Compact, and
            ``(C) conducted in conformance with a Compact that is in 
        effect.'';
            (2) in paragraph (2)--
                    (A) by striking ``Tribal-State compact entered into 
                under paragraph (3) by the Indian tribe'' in 
                subparagraph (C) and inserting ``Compact'';
                    (B) by striking ``Tribal-State compact'' in 
                subparagraph (D)(iii)(I) and inserting ``Compact'';
            (3) by amending paragraph (3) to read as follows:
    ``(3)(A)(i) Any Indian tribe having jurisdiction over the Indian 
lands upon which a class III gaming activity is to be conducted shall 
request the Secretary to enter into a Compact with the tribe. Such 
request shall specify the gaming activity or activities to be governed 
by the Compact.
    ``(ii) Negotiations between the tribe and the Secretary shall be 
completed within 180 days, subject to the procedures required by 
paragraph (5)(B) that the Secretary and the tribe shall utilize to 
resolve disputes arising from negotiations.
    ``(iii) The Compact shall be effective upon publication in the 
Federal Register by the Secretary.
    ``(iv) The Commission shall pursuant to section 7 of this Act 
monitor class III gaming to the extent provided by each Compact as 
published by the Secretary.
    ``(B) Any Compact entered into under subparagraph (A) may include 
provisions relating to--
            ``(i) the adoption of any of the criminal and civil laws 
        and regulations of the Indian tribe, or with tribal consent, of 
        the State, that are directly related to, and necessary for, the 
        licensing and regulation of such activity;
            ``(ii) the assessment by the Secretary of such activities 
        in such amounts as are necessary to defray the costs of 
        regulating such activity;
            ``(iii) remedies for breach of contract;
            ``(iv) standards for the operation of such activity and 
        maintenance of the gaming facility, including licensing; and
            ``(v) any other subjects that are reasonably related to the 
        operation of gaming activities.''.
            (4) by striking out paragraphs (4) and (5);
            (5) by striking paragraph (8) and redesignating paragraph 
        (9) as paragraph (11); and
            (6) by striking paragraphs (6) and (7) and inserting the 
        following:
    ``(4) The provisions of section 5 of the Act of January 2, 1951 (25 
Stat. 1175), shall not apply to any gaming on Indian lands, or to 
manufacturing and assembly of gaming devices on Indian lands.
    ``(5)(A) The United States district courts shall have jurisdiction 
over--
            ``(i) any cause of action for a declaratory judgment 
        arising from the failure of an Indian tribe and the Secretary 
        to resolve disputes pursuant to paragraph (3) of this section,
            ``(ii) any cause of action initiated by United States or 
        Indian tribe to enjoin a class III gaming activity located on 
        Indian tribes and conducted in violation of any Compact entered 
        into under paragraph (3) that is in effect, and
            ``(iii) any cause of action initiated by the Secretary or a 
        tribe to enforce provisions of Compacts.
    ``(B) Notwithstanding any declaratory judgment action pending under 
paragraph (6), a tribe and the Secretary may negotiate and proceed to 
mediation under the Act on issues not subject to the declaratory 
judgment action.
    ``(6)(A) No later than 120 days after the Tribe has notified the 
Secretary its election to negotiate a Compact, or no later than such 
longer period as may be extended in writing by the parties, either 
party may initiate an action in Federal district court for a 
declaration whether a gaming activity is subject to Compact negotiation 
under this Act. In any such declaratory action, the court shall declare 
that the gaming activity as a matter of Federal law shall be the 
subject of negotiation if it finds that--
            ``(i) the gaming activity is not prohibited as a matter of 
        State criminal law and public policy; or
            ``(ii) if the gaming activity is subject to prosecution and 
        criminal sanction as a matter of State law, the gaming activity 
        meets one or more of the following criteria--
                    ``(I) its principal characteristics are 
                substantially similar to principal characteristics of 
                gaming activities that are not subject to prosecution 
                and criminal sanction as a matter of State law;
                    ``(II) State law permits the gaming activity 
                subject to regulation;
                    ``(III) as a matter of State law some person, 
                organization, or entity within the State may engage in 
                the gaming activity for some purpose; and
                    ``(IV) there is a pervasive pattern of 
                nonenforcement of the prohibition of such gaming.
    ``(B) The Compact also shall include such provisions which best 
meet the objectives of this Act and are consistent with any declaratory 
judgment issued pursuant to this paragraph.
    ``(7)(A) Subject to subparagraph (B), if the parties agree on a 
Compact, the Secretary shall adopt such Compact and publish the Compact 
in the Federal Register.
    ``(B) The Compact referred to in subparagraph (A) shall not be 
approved by the Secretary--
            ``(i) unless it contains provisions relating to internal 
        controls of cash flow transactions, recordkeeping and 
        reporting, accounting, security, and licensing of employees; 
        and
            ``(ii) if the Compact does not violate--
                    ``(I) any provisions of this Act;
                    ``(II) any other provision of Federal law that does 
                not relate to jurisdiction over gaming on Indian 
                reservations; or
                    ``(III) the trust obligations of the United States 
                to Indians.
    ``(8) Except for an appeal under chapter 7 of title 5, United 
States Code, publication of a Compact pursuant to this subsection which 
permits a class III gaming activity shall be conclusive that such class 
III gaming is an activity subject to negotiations where the gaming is 
to be conducted, in any matter under consideration by the Commission or 
a Federal court.
    ``(9) If the parties do not agree on a Compact under this 
subsection before the date that is 45 days after the expiration of the 
180-day period with respect to the last Tribal Compact proposal during 
the 180-day period, the Compact shall be considered approved, but only 
to the extent that the Compact is consistent with the provisions of 
this Act.
    ``(10) The Secretary shall publish in the Federal Register notice 
of any Compact that has been approved, or considered to have been 
approved, under this subsection. Failure of the Secretary to publish 
pursuant to this subsection shall not affect the legality of the 
compact, which shall be treated as if notice was timely and properly 
published.'';
            (7) in paragraph (11) (as so redesignated), by striking 
        ``subsections (b), (c), (d), (f), (g), and (h) of''.

SEC. 7. REVIEW OF EXISTING ORDINANCES AND CONTRACTS.

    (a) Management Contract.--Paragraph (3) of section 12(a) (25 U.S.C. 
2711(a)) is amended by striking ``all collateral agreements to such 
contract that relate to the gaming activity'' and inserting ``all other 
agreements that comprise whole or partial consideration of the parties 
entering into the management agreement''.
    (b) Review.--Paragraph (1) of section 13(c) (25 U.S.C. 2712(c)) is 
amended by striking ``all collateral agreements,'' and inserting ``all 
related agreements involving the same parties, financing or leasing 
agreements, or any agreement that pertains to significant management 
functions or responsibilities,''.

SEC. 8. CIVIL PENALTIES.

    (a) Date From Which Fines Run.--Paragraph (1) of section 14(a) (25 
U.S.C. 2713(a)) is amended by adding at the end the following: ``Fines 
imposed under this paragraph may not run from before the date of notice 
of violation.''.
    (b) Informal Dispute Resolution.--Paragraph (2) of section 14(a) 
(25 U.S.C. 2713(a)) is amended by inserting ``an opportunity for 
resolving disputes informally and'' after ``provide''.

SEC. 9. GAMING ON LANDS ACQUIRED AFTER DATE OF ENACTMENT.

    (a) Repeal of Concurrence by Governor.--Subparagraph (A) of section 
20(b)(1) (25 U.S.C. 2719(b)(1)) is amended by striking ``, but only'' 
and all that follows through ``determination''.
    (b) Application of Internal Revenue Code.--Paragraph (1) of section 
20(d) (25 U.S.C. 2719(d)) is amended--
            (1) by inserting ``, and the exemption from Federal taxes 
        provided to the States with respect to any gaming activity,'' 
        after ``wagering operations'' the first place it appears; and
            (2) by striking ``or under a Tribal-State'' and all that 
        follows through ``effect,'' and inserting ``and the reporting 
        of cash transactions,''.

SEC. 10. CRIMINAL PENALTIES.

    Subsections (c)(2) and (d) of section 1166 of title 18, United 
States Code, are each amended by striking ``Tribal State compact'' and 
inserting ``Compact''.

SEC. 11. APPLICABILITY OF FEDERAL LAWS TO CLASS III GAMING.

    The Act (25 U.S.C. 2701 et seq.) is amended by adding at the end 
the following:

                            ``miscellaneous

    ``Sec. 25. (a) Class III gaming activities that are as a matter of 
Federal law, lawfully in any jurisdiction on the date of the enactment 
of this section, shall, notwithstanding the provisions of this Act, 
remain lawful for purposes of section 11(d)(6) of this Act.
    ``(b) For purposes of Federal law, the laws in effect on the date 
that a tribe notifies the Secretary (or prior to 1993, notified the 
State) that it wishes to negotiate a Compact, shall be the basis for 
determining the scope of gaming in section 11(d) of this Act for any 
Compact, or for procedures in lieu of a compact.
    ``(c) For purposes of this Act, any change in State law which 
occurs after the earlier of (1) a Tribe's request to the State for 
negotiations of a Tribal-State Compact pursuant to this Act, or (2) the 
Tribe's request to the Secretary for a Compact pursuant to this Act, 
shall not have any affect upon the terms and conditions of the Compact, 
or upon the obligations of any government entity pursuant to this Act.
    ``(d) Notwithstanding any provision of this Act, tribes with Indian 
lands in the Eastern District of Washington shall be entitled to 
conduct class III gaming activities without a Compact, as long as such 
games are limited to the nature and scope of gaming activities in 
effect on or prior to November 1, 1994, so long as such activities are 
otherwise in compliance with this Act.
    ``(e) Notwithstanding any provision of this Act, tribes with Indian 
lands in Wisconsin shall be entitled to conduct class III gaming 
activities consistent with the decision of the Federal district court 
in Lac du Flambeau Band of Lake Superior Chippewa v. State of 
Wisconsin, 770 F. Supp. 480 (W.D. Wis. 1991).''.

SEC. 12. EFFECTIVE DATE.

    (a) Tribal-State Compacts.--Notwithstanding any other provision of 
this Act or an amendment made by this Act, all Tribal-State Compacts 
approved by the Secretary of the Interior, and procedures for 
governance in lieu of Compacts promulgated by the Secretary, under the 
Indian Gaming Regulatory Act as in effect on the date before the date 
of enactment of this Act, shall continue to be fully operative and 
binding on the parties and shall not be subject to revision unless 
agreed to by the parties.
    (b) Pending Negotiations of Tribal-State Compacts.--Any tribe that 
requested a State to negotiate a Tribal-State Compact prior to the 
enactment of this Act and has not completed that process may request 
the Secretary to enter into a Compact as specified under section 
11(d)(3)(A) of the Indian Gaming Regulatory Act, as provided by the 
amendments made by this Act.
    (c) Class III Gaming Under Certain Department of the Interior 
Regulations.--Notwithstanding any provision of the amendments made by 
this Act, tribes operating class III gaming pursuant to regulations 
promulgated by the Department of the Interior and in effect on or 
before the date of enactment of this Act shall be entitled to conduct 
class III gaming activities without the approval of a Compact, 
consistent with such regulations.
    (d) Definition.--For the purposes of this section, the term 
``Tribal-State Compact'' has the same meaning given such term in the 
Indian Gaming Regulatory Act, as such Act was in effect on the date 
before the date of enactment of this Act.

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