II

104TH CONGRESS

1ST SESSION S. 487

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

IN THE SENATE OF THE UNITED STATES

MARCH 2 (legislative day, FEBRUARY 22), 1995

Mr. MCCAIN (for himself and Mr. INOUYE) introduced the following bill; which

was read twice and referred to the Committee on Indian Affairs

A BILL

To amend the Indian Gaming Regulatory Act, and for other

purposes.

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled,

3 SECTION 1. SHORT TITLE.

4 This Act may be cited as the ‘‘Indian Gaming Regu5 latory Act Amendments Act of 1995’’.

6 SEC. 2. AMENDMENTS TO THE INDIAN GAMING REGU7 LATORY ACT.

8 The Indian Gaming Regulatory Act (25 U.S.C. 2701

9 et seq.) is amended—

10 (1) by striking the first section and inserting

11 the following new section:
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1 ‘‘SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

2 ‘‘(a) SHORT TITLE.—This Act may be cited as the

3 ‘Indian Gaming Regulatory Act’.

4 ‘‘(b) TABLE OF CONTENTS.—The table of contents

5 for this Act is as follows:

‘‘Sec. 1. Short title; table of contents.

‘‘Sec. 2. Congressional findings.

‘‘Sec. 3. Purposes.

‘‘Sec. 4. Definitions.

‘‘Sec. 5. Establishment of the Federal Indian Gaming Regulatory Commission.

‘‘Sec. 6. Powers of the Chairperson.

‘‘Sec. 7. Powers and authority of the Commission.

‘‘Sec. 8. Regulatory framework.

‘‘Sec. 9. Advisory Committee on Minimum Regulatory Requirements and Licensing Standards.

‘‘Sec. 10. Licensing.

‘‘Sec. 11. Requirements for the conduct of class I and class II gaming on Indian lands.

‘‘Sec. 12. Class III gaming on Indian lands.

‘‘Sec. 13. Review of contracts.

‘‘Sec. 14. Review of existing contracts; interim authority.

‘‘Sec. 15. Civil penalties.

‘‘Sec. 16. Judicial review.

‘‘Sec. 17. Commission funding.

‘‘Sec. 18. Authorization of appropriations.

‘‘Sec. 19. Miscellaneous.

‘‘Sec. 20. Dissemination of information.

‘‘Sec. 21. Severability.

‘‘Sec. 22. Criminal penalties.

‘‘Sec. 23. Conforming amendment.

‘‘Sec. 24. Definition of financial institutions.’’;

6 (2) by striking sections 2 through 19 and in7 serting the following new sections:

8 ‘‘SEC. 2. CONGRESSIONAL FINDINGS.

9 ‘‘The Congress finds that—

10 ‘‘(1) Indian tribes are—

11 ‘‘(A) engaged in the operation of gaming

12 activities on Indian lands as a means of gener13 ating tribal governmental revenue; and
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1 ‘‘(B) licensing such activities;

2 ‘‘(2) clear Federal standards and regulations

3 for the conduct of gaming on Indian lands will assist

4 tribal governments in assuring the integrity of gam5 ing activities conducted on Indian lands;

6 ‘‘(3) a principal goal of Federal Indian policy is

7 to promote tribal economic development, tribal self8 sufficiency, and strong tribal government;

9 ‘‘(4) while Indian tribes have the right to regu10 late the operation of gaming activities on Indian

11 lands if such gaming activities are—

12 ‘‘(A) not specifically prohibited by Federal

13 law; and

14 ‘‘(B) conducted within a State that as a

15 matter of public policy permits such gaming ac16 tivities,

17 Congress has the authority to regulate the privilege

18 of doing business with Indian tribes in Indian coun19 try (as defined in section 1151 of title 18, United

20 States Code);

21 ‘‘(5) systems for the regulation of gaming ac22 tivities on Indian lands should meet or exceed feder23 ally established minimum regulatory requirements;

24 ‘‘(6) the operation of gaming activities on In25 dian lands has had a significant impact on com-
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1 merce with foreign nations, among the several States

2 and with the Indian tribes; and

3 ‘‘(7) the Constitution vests the Congress with

4 the powers to regulate Commerce with foreign Na5 tions, and among the several States, and with the

6 Indian Tribes, and this Act is enacted in the exercise

7 of those powers.

8 ‘‘SEC. 3. PURPOSES.

9 ‘‘The purposes of this Act are—

10 ‘‘(1) to ensure the right of Indian tribes to con11 duct gaming activities on Indian lands in a manner

12 consistent with the decision of the Supreme Court in

13 California et al. v. Cabazon Band of Mission Indians

14 et al. (480 U.S. 202, 107 S. Ct. 1083, 94 L. Ed.

15 2d 244 (1987)), involving the Cabazon and Morongo

16 Bands of Mission Indians;

17 ‘‘(2) to provide a statutory basis for the con18 duct of gaming activities on Indian lands as a means

19 of promoting tribal economic development, self-suffi20 ciency, and strong Indian tribal governments;

21 ‘‘(3) to provide a statutory basis for the regula22 tion of gaming activities on Indian lands by an In23 dian tribe adequate to shield such activities from or24 ganized crime and other corrupting influences, to en25 sure that an Indian tribal government is the primary
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1 beneficiary of the operation of gaming activities, and

2 to ensure that gaming is conducted fairly and hon3 estly by both the operator and players; and

4 ‘‘(4) to declare that the establishment of inde5 pendent Federal regulatory authority for the conduct

6 of gaming activities on Indian lands and the estab7 lishment of Federal minimum regulatory require8 ments for the conduct of gaming activities on Indian

9 lands are necessary to protect such gaming.

10 ‘‘SEC. 4. DEFINITIONS.

11 ‘‘For purposes of this Act, the following definitions

12 shall apply:

13 ‘‘(1) APPLICANT.—The term ‘applicant’ means

14 any person who applies for a license pursuant to this

15 Act, including persons applying for a renewal of a li16 cense.

17 ‘‘(2) ADVISORY COMMITTEE.—The term ‘Advi18 sory Committee’ means the Advisory Committee on

19 Minimum Regulatory Requirements and Licensing

20 Standards established under section 9(a).

21 ‘‘(3) ATTORNEY GENERAL.—The term ‘Attor22 ney General’ means the Attorney General of the

23 United States.

24 ‘‘(4) CHAIRPERSON.—The term ‘Chairperson’

25 means the Chairperson of the Federal Indian Gam-
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1 ing Regulatory Commission established under sec2 tion 5.

3 ‘‘(5) CLASS I GAMING.—The term ‘class I gam4 ing’ means social games played solely for prizes of

5 minimal value or traditional forms of Indian gaming

6 engaged in by individuals as a part of, or in connec7 tion with, tribal ceremonies or celebrations.

8 ‘‘(6) CLASS II GAMING.—

9 ‘‘(A) IN GENERAL.—The term ‘class II

10 gaming’ means—

11 ‘‘(i) the game of chance commonly

12 known as bingo or lotto including, if played

13 in the same location, pull-tabs, punch

14 boards, tip jars, instant bingo, and other

15 games similar to bingo (whether or not

16 electronic, computer, or other technologic

17 aids are used in connection therewith)—

18 ‘‘(I) which is played for prizes,

19 including monetary prizes, with cards

20 bearing numbers or other designa21 tions;

22 ‘‘(II) in which the holder of the

23 card covers such numbers or designa24 tions when objects, similarly num-
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1 bered or designated, are drawn or

2 electronically determined; and

3 ‘‘(III) in which the game is won

4 by the first person covering a pre5 viously designated arrangement of

6 numbers or designations on such

7 cards; and

8 ‘‘(ii) card games that—

9 ‘‘(I) are explicitly authorized by

10 the laws of a State; or

11 ‘‘(II) are not explicitly prohibited

12 by the laws of a State and are played

13 at any location in the State, but only

14 if such card games are played in con15 formity with any such laws (including

16 regulations) of the State regarding

17 hours or periods of operation of such

18 card games or limitations on wagers

19 or pot sizes in such card games.

20 ‘‘(B) EXCLUSIONS.—The term ‘class II

21 gaming’ does not include—

22 ‘‘(i) any banking card games, includ23 ing baccarat, chemin de fer, or blackjack

24 (21); or
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1 ‘‘(ii) gambling devices, as defined in

2 paragraph (11), except for any class II

3 game that is played under subparagraph

4 (A)(i) with technologic aid that has been

5 approved by the Commission.

6 ‘‘(C) TREATMENT OF CERTAIN GAMES.—

7 Notwithstanding any other provision of this

8 paragraph, the term ‘class II gaming’ includes

9 those card games played in the State of Michi10 gan, the State of North Dakota, the State of

11 South Dakota, or the State of Washington,

12 that, on or before May 1, 1988, were actually

13 operated in such State by an Indian tribe, but

14 only to the extent of the nature and scope of

15 the card games that were actually operated by

16 an Indian tribe in such State on or before such

17 date, as determined by the Commission (as de18 fined in paragraph (8)).

19 ‘‘(7) CLASS III GAMING.—The term ‘class III

20 gaming’ means all forms of gaming that are not

21 class I gaming or class II gaming.

22 ‘‘(8) COMMISSION.—The term ‘Commission’

23 means the Federal Indian Gaming Regulatory Com24 mission established under section 5.
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1 ‘‘(9) COMPACT.—The term ‘compact’ means an

2 agreement relating to the operation of class III gam3 ing on Indian lands entered into by an Indian tribe

4 and a State, that is approved by the Secretary, or

5 an agreement relating to the operation of class III

6 gaming that is negotiated by an Indian tribe and the

7 Secretary, and approved by the Secretary.

8 ‘‘(10) ELECTRONIC, COMPUTER, OR OTHER

9 TECHNOLOGIC AID.—The term ‘electronic, computer,

10 or other technologic aid’, in connection with class II

11 gaming, means a device, such as a computer, tele12 phone, cable, television, satellite, or bingo blower,

13 that, when used—

14 ‘‘(A) is not a game of chance or a gam15 bling device;

16 ‘‘(B) merely assists a player or the playing

17 of a game; and

18 ‘‘(C) is operated according to applicable

19 Federal communications law.

20 ‘‘(11) ELECTRONIC OR ELECTROMECHANICAL

21 FACSIMILE.—The term ‘electronic or

22 electromechanical facsimile’ means any gambling de23 vice, as defined in paragraph (12).

24 ‘‘(12) GAMBLING DEVICE.—The term ‘gambling

25 device’ means—
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1 ‘‘(A) any gambling device, as defined in

2 section 1(a) of the Act of January 2, 1951

3 (commonly referred to as the ‘Gambling Devices

4 Transportation Act’) (64 Stat. 1134, chapter

5 1194; 15 U.S.C. 1171(a)), including any elec6 tronic or electromechanical facsimile; and

7 ‘‘(B) does not include a technological aid

8 to class II gaming that is approved by the Com9 mission.

10 ‘‘(13) GAMING-RELATED CONTRACT.—The term

11 ‘gaming-related contract’ means any agreement for

12 an amount of more than $50,000 per year—

13 ‘‘(A) under which an Indian tribe or an

14 agent of any Indian tribe procures gaming ma15 terials, supplies, equipment, or services that are

16 used in the conduct of a class II or class III

17 gaming activity, or

18 ‘‘(B) financing contracts or agreements for

19 any facility in which a gaming activity is to be

20 conducted.

21 ‘‘(14) GAMING-RELATED CONTRACTOR.—The

22 term ‘gaming-related contractor’ means any person

23 who enters into a gaming-related contract with an

24 Indian tribe or an agent of an Indian tribe, includ-
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1 ing any person with a financial interest in such con2 tract.

3 ‘‘(15) GAMING SERVICE INDUSTRY.—The term

4 ‘gaming service industry’ means any form of enter5 prise that provides goods or services that are used

6 in conjunction with any class II or class III gaming

7 activity, in any case in which—

8 ‘‘(A) the proposed agreement between the

9 enterprise and a class II or class III gaming op10 eration, or the aggregate of such agreements is

11 for an amount of not less than $100,000 per

12 year; or

13 ‘‘(B) the amount of business conducted by

14 such enterprise with any gaming operation in

15 the 1-year period preceding the effective date of

16 such agreement was not less than $250,000.

17 ‘‘(16) INDIAN LANDS.—The term ‘Indian lands’

18 means—

19 ‘‘(A) all lands within the limits of any In20 dian reservation; and

21 ‘‘(B) any lands—

22 ‘‘(i) the title to which is held in trust

23 by the United States for the benefit of any

24 Indian tribe; or

25 ‘‘(ii) the title to which is—
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1 ‘‘(I) held by an Indian tribe sub2 ject to a restriction by the United

3 States against alienation;

4 ‘‘(II) held by the United States

5 for the benefit of an individual Indian;

6 or

7 ‘‘(III) held by an individual sub8 ject to restriction by the United

9 States against alienation; and

10 ‘‘(iii) over which an Indian tribe exer11 cises governmental power.

12 ‘‘(17) INDIAN TRIBE.—The term ‘Indian tribe’

13 means any Indian tribe, band, nation, or other orga14 nized group or community of Indians that—

15 ‘‘(A) is recognized as eligible by the Sec16 retary for the special programs and services

17 provided by the United States to Indians be18 cause of their status as Indians; and

19 ‘‘(B) is recognized as possessing powers of

20 self-government.

21 ‘‘(18) KEY EMPLOYEE.—The term ‘key em22 ployee’ means any individual employed in a gaming

23 operation licensed pursuant to this Act in a super24 visory capacity or empowered to make any discre25 tionary decision with regard to the gaming oper-
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1 ation, including any pit boss, shift boss, credit exec2 utive, cashier supervisor, gaming facility manager or

3 assistant manager, or manager or supervisor of se4 curity employees.

5 ‘‘(19) MANAGEMENT CONTRACT.—The term

6 ‘management contract’ means any contract or collat7 eral agreement between an Indian tribe and a con8 tractor, if such contract or agreement provides for

9 the management of all or part of a gaming oper10 ation.

11 ‘‘(20) MANAGEMENT CONTRACTOR.—The term

12 ‘management contractor’ means any person entering

13 into a management contract with an Indian tribe or

14 an agent of the Indian tribe for the management of

15 a gaming operation, including any person with a fi16 nancial interest in such contract.

17 ‘‘(21) MATERIAL CONTROL.—The term ‘mate18 rial control’ means the exercise of authority or su19 pervision or the power to make or cause to be made

20 any discretionary decision with regard to matters

21 which have a substantial effect on the financial or

22 management aspects of a gaming operation.

23 ‘‘(22) NET REVENUES.—The term ‘net reve24 nues’ means the gross revenues of an Indian gaming

25 activity reduced by the sum of—
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1 ‘‘(A) any amounts paid out or paid for as

2 prizes; and

3 ‘‘(B) the total operating expenses associ4 ated with the gaming activity, excluding man5 agement fees.

6 ‘‘(23) PERSON.—The term ‘person’ means an

7 individual, firm, corporation, association, partner8 ship, trust, consortium, joint venture, entity, or

9 gaming operation.

10 ‘‘(24) SECRETARY.—The term ‘Secretary’

11 means the Secretary of the Interior.

12 ‘‘SEC. 5. ESTABLISHMENT OF THE FEDERAL INDIAN GAM13 ING REGULATORY COMMISSION.

14 ‘‘(a) ESTABLISHMENT.—There is established as an

15 independent agency of the United States, a Commission

16 to be known as the Federal Indian Gaming Regulatory

17 Commission. Such Commission shall be an independent es18 tablishment, as defined in section 104 of title 5, United

19 States Code.

20 ‘‘(b) COMPOSITION OF THE COMMISSION.—

21 ‘‘(1) IN GENERAL.—The Commission shall be

22 composed of 3 full-time members, who shall be ap23 pointed by the President, by and with the advice and

24 consent of the Senate.
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1 ‘‘(2) CITIZENSHIP OF MEMBERS.—Each mem2 ber of the Commission shall be a citizen of the Unit3 ed States.

4 ‘‘(3) REQUIREMENTS FOR MEMBERS.—No

5 member of the Commission may—

6 ‘‘(A) pursue any other business or occupa7 tion or hold any other office;

8 ‘‘(B) be actively engaged in or, other than

9 through distribution of gaming revenues as a

10 member of an Indian tribe, have any direct pe11 cuniary interest in gaming activities;

12 ‘‘(C) other than through distribution of

13 gaming revenues as a member of an Indian

14 tribe, have any pecuniary interest in any busi15 ness or organization that holds a gaming license

16 under this Act or that does business with any

17 person or organization licensed under this Act;

18 ‘‘(D) have been convicted of a felony or

19 gaming offense; or

20 ‘‘(E) have any financial interest in, or

21 management responsibility for, any gaming-re22 lated contract or any other contract approved

23 pursuant to this Act.

24 ‘‘(4) POLITICAL AFFILIATION.—
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1 ‘‘(A) IN GENERAL.—Not more than 2

2 members of the Commission shall be members

3 of the same political party. In making appoint4 ments to the Commission, the President shall

5 appoint members of different political parties,

6 to the extent practicable.

7 ‘‘(B) TRIBAL MEMBERSHIP.—At least 2

8 members of the Commission shall each be a

9 member of a federally recognized Indian tribe.

10 No 2 members appointed under this subpara11 graph shall be members of the same Indian

12 tribe.

13 ‘‘(5) ADDITIONAL REQUIREMENTS.—The Com14 mission shall be composed of the most qualified indi15 viduals available, subject to the following conditions:

16 ‘‘(A) CERTIFIED PUBLIC ACCOUNTANT

17 REPRESENTATION.—One member of the Com18 mission shall be a certified public accountant

19 with not less than 5 years of progressively re20 sponsible experience in accounting and auditing,

21 and a comprehensive knowledge of the prin22 ciples and practices of corporate finance.

23 ‘‘(B) LAW ENFORCEMENT REPRESENTA24 TION.—One member of the Commission shall be

25 selected with special reference to training and
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1 experience in the fields of investigation or law

2 enforcement.

3 ‘‘(6) BACKGROUND INVESTIGATIONS.—The At4 torney General shall conduct a background inves5 tigation concerning any individual under consider6 ation for appointment to the Commission, with par7 ticular regard to the financial stability, integrity, re8 sponsibility, and reputation for good character, hon9 esty, and integrity of the nominee.

10 ‘‘(c) CHAIRPERSON.—The President shall select a

11 Chairperson from among the members appointed to the

12 Commission.

13 ‘‘(d) VICE CHAIRPERSON.—The Commission shall se14 lect, by majority vote, one of the members of the Commis15 sion to serve as Vice Chairperson. The Vice Chairperson

16 shall—

17 ‘‘(1) serve as Chairperson of the Commission in

18 the absence of the Chairperson; and

19 ‘‘(2) exercise such other powers as may be dele20 gated by the Chairperson.

21 ‘‘(e) TERMS OF OFFICE.—

22 ‘‘(1) IN GENERAL.—Each member of the Com23 mission shall hold office for a term of 5 years.
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1 ‘‘(2) INITIAL APPOINTMENTS.—Initial appoint2 ments to the Commission shall be made for the fol3 lowing terms:

4 ‘‘(A) The Chairperson shall be appointed

5 for a term of 5 years.

6 ‘‘(B) One member shall be appointed for a

7 term of 4 years.

8 ‘‘(C) One member shall be appointed for a

9 term of 3 years.

10 ‘‘(3) LIMITATION.—No member shall serve for

11 more than 2 terms of 5 years each.

12 ‘‘(f) VACANCIES.—

13 ‘‘(1) IN GENERAL.—Each individual appointed

14 by the President to serve as Chairperson and each

15 member of the Commission shall, unless removed for

16 cause under paragraph (2), serve in the capacity for

17 which such individual is appointed until the expira18 tion of the term of such individual or until a succes19 sor is duly appointed and qualified.

20 ‘‘(2) REMOVAL FROM OFFICE.—The Chair21 person or any member of the Commission may only

22 be removed from office before the expiration of the

23 term of office by the President for neglect of duty,

24 malfeasance in office, or for other good cause shown.
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1 ‘‘(3) TERM TO FILL VACANCIES.—The term of

2 any member appointed to fill a vacancy on the Com3 mission shall be for the unexpired term of the mem4 ber.

5 ‘‘(g) QUORUM.—Two members of the Commission

6 shall constitute a quorum.

7 ‘‘(h) MEETINGS.—

8 ‘‘(1) IN GENERAL.—The Commission shall meet

9 at the call of the Chairperson or a majority of the

10 members of the Commission.

11 ‘‘(2) MAJORITY OF MEMBERS DETERMINE AC12 TION.—A majority of the members of the Commis13 sion shall determine any action of the Commission.

14 ‘‘(i) COMPENSATION.—

15 ‘‘(1) CHAIRPERSON.—The Chairperson shall be

16 paid at a rate equal to that of level IV of the Execu17 tive Schedule under section 5316 of title 5, United

18 States Code.

19 ‘‘(2) OTHER MEMBERS.—Each other member of

20 the Commission shall be paid at a rate equal to that

21 of level V of the Executive Schedule under section

22 5316 of title 5, United States Code.

23 ‘‘(3) TRAVEL.—All members of the Commission

24 shall be reimbursed in accordance with title 5, Unit25 ed States Code, for travel, subsistence, and other
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1 necessary expenses incurred by them in the perform2 ance of their duties.

3 ‘‘(j) ADMINISTRATIVE SUPPORT SERVICES.—The Ad4 ministrator of General Services shall provide to the Com5 mission on a reimbursable basis such administrative sup6 port services as the Commission may request.

7 ‘‘SEC. 6. POWERS OF THE CHAIRPERSON.

8 ‘‘(a) CHIEF EXECUTIVE OFFICER.—The Chairperson

9 shall serve as the chief executive officer of the Commis10 sion.

11 ‘‘(b) ADMINISTRATION OF THE COMMISSION.—

12 ‘‘(1) IN GENERAL.—Subject to subsection (c),

13 the Chairperson—

14 ‘‘(A) shall employ and supervise such per15 sonnel as the Chairperson considers necessary

16 to carry out the functions of the Commission,

17 and assign work among such personnel;

18 ‘‘(B) shall appoint a General Counsel to

19 the Commission who shall be paid at the annual

20 rate of basic pay payable for ES–6 of the Sen21 ior Executive Service Schedule under section

22 5382 of title 5, United States Code;

23 ‘‘(C) shall appoint and supervise other

24 staff of the Commission without regard to the
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1 provisions of title 5, United States Code, gov2 erning appointments in the competitive service;

3 ‘‘(D) may procure temporary and intermit4 tent services under section 3109(b) of title 5,

5 United States Code, but at rates for individuals

6 not to exceed the daily equivalent of the maxi7 mum annual rate of basic pay payable for ES–

8 6 of the Senior Executive Service Schedule;

9 ‘‘(E) may request the head of any Federal

10 agency to detail any personnel of such agency

11 to the Commission to assist the Commission in

12 carrying out the duties of the Commission

13 under this Act, unless otherwise prohibited by

14 law;

15 ‘‘(F) shall use and expend Federal funds

16 and funds collected pursuant to section 17; and

17 ‘‘(G) may contract for the services of such

18 other professional, technical, and operational

19 personnel and consultants as may be necessary

20 to the performance of the Commission’s respon21 sibilities under this Act.

22 ‘‘(2) COMPENSATION OF STAFF.—The staff re23 ferred to in paragraph (1)(C) shall be paid without

24 regard to the provisions of chapter 51 and sub25 chapters III and VIII of chapter 53 of title 5, Unit-
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1 ed States Code, relating to classification and Gen2 eral Schedule and Senior Executive Service Schedule

3 pay rates, except that no individual so appointed

4 may receive pay in excess of the annual rate of basic

5 pay payable for ES–5 of the Senior Executive Serv6 ice Schedule under section 5382 of title 5, United

7 States Code.

8 ‘‘(c) APPLICABLE POLICIES.—In carrying out any of

9 the functions under this section, the Chairperson shall be

10 governed by the general policies of the Commission and

11 by such regulatory decisions, findings, and determinations

12 as the Commission may by law be authorized to make.

13 ‘‘SEC. 7. POWERS AND AUTHORITY OF THE COMMISSION.

14 ‘‘(a) GENERAL POWERS.—

15 ‘‘(1) IN GENERAL.—The Commission shall have

16 the power to—

17 ‘‘(A) approve the annual budget of the

18 Commission;

19 ‘‘(B) promulgate regulations to carry out

20 this Act;

21 ‘‘(C) establish a rate of fees and assess22 ments, as provided in section 17;

23 ‘‘(D) conduct investigations, including

24 background investigations;
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1 ‘‘(E) issue a temporary order closing the

2 operation of gaming activities;

3 ‘‘(F) after a hearing, make permanent a

4 temporary order closing the operation of gam5 ing activities, as provided in section 15;

6 ‘‘(G) grant, deny, limit, condition, restrict,

7 revoke, or suspend any license issued under any

8 licensing authority conferred upon the Commis9 sion pursuant to this Act or fine any person li10 censed pursuant to this Act for violation of any

11 of the conditions of licensure under this Act;

12 ‘‘(H) inspect and examine all premises in

13 which class II or class III gaming is conducted

14 on Indian lands;

15 ‘‘(I) demand access to and inspect, exam16 ine, photocopy, and audit all papers, books, and

17 records of class II and class III gaming activi18 ties conducted on Indian lands and any other

19 matters necessary to carry out the duties of the

20 Commission under this Act;

21 ‘‘(J) use the United States mail in the

22 same manner and under the same conditions as

23 any department or agency of the United States;
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1 ‘‘(K) procure supplies, services, and prop2 erty by contract in accordance with applicable

3 Federal laws;

4 ‘‘(L) enter into contracts with Federal,

5 State, tribal, and private entities for activities

6 necessary to the discharge of the duties of the

7 Commission;

8 ‘‘(M) serve or cause to be served process or

9 notices of the Commission in a manner provided

10 for by the Commission or in a manner provided

11 for the service of process and notice in civil ac12 tions in accordance with the applicable rules of

13 a tribal, State, or Federal court;

14 ‘‘(N) propound written interrogatories and

15 appoint hearing examiners, to whom may be

16 delegated the power and authority to administer

17 oaths, issue subpoenas, propound written inter18 rogatories, and require testimony under oath;

19 ‘‘(O) conduct all administrative hearings

20 pertaining to civil violations of this Act (includ21 ing any civil violation of a regulation promul22 gated under this Act);

23 ‘‘(P) collect all fees and assessments au24 thorized by this Act and the regulations pro25 mulgated pursuant to this Act;
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1 ‘‘(Q) assess penalties for violations of the

2 provisions of this Act and the regulations pro3 mulgated pursuant to this Act;

4 ‘‘(R) provide training and technical assist5 ance to Indian tribes with respect to all aspects

6 of the conduct and regulation of gaming activi7 ties;

8 ‘‘(S) monitor and, as specifically author9 ized by this Act, regulate class II and class III

10 gaming;

11 ‘‘(T) approve all management-related and

12 gaming-related contracts; and

13 ‘‘(U) in addition to the authorities other14 wise specified in this Act, delegate, by published

15 order or rule, any of the functions of the Com16 mission (including functions with respect to

17 hearing, determining, ordering, certifying, re18 porting, or otherwise acting on the part of the

19 Commission concerning any work, business, or

20 matter) to a division of the Commission, an in21 dividual member of the Commission, an admin22 istrative law judge, or an employee of the Com23 mission.

24 ‘‘(2) STATUTORY CONSTRUCTION.—Nothing in

25 this section may be construed to authorize the dele-
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1 gation of the function of rulemaking, as described in

2 subchapter II of chapter 5 of title 5, United States

3 Code, with respect to general rules (as distinguished

4 from rules of particular applicability), or the promul5 gation of any other rule.

6 ‘‘(b) RIGHT TO REVIEW DELEGATED FUNCTIONS.—

7 ‘‘(1) IN GENERAL.—With respect to the delega8 tion of any of the functions of the Commission, the

9 Commission shall retain a discretionary right to re10 view the action of any division of the Commission,

11 individual member of the Commission, administra12 tive law judge, or employee of the Commission, upon

13 the initiative of the Commission.

14 ‘‘(2) VOTE NEEDED FOR REVIEW.—The vote of

15 one member of the Commission shall be sufficient to

16 bring an action referred to in paragraph (1) before

17 the Commission for review, and the Commission

18 shall ratify, revise, or reject the action under review

19 not later than the last day of the applicable period

20 specified in regulations promulgated by the Commis21 sion.

22 ‘‘(3) FAILURE TO CONDUCT REVIEW.—If the

23 Commission declines to exercise the right to such re24 view or fails to exercise such right within the appli25 cable period specified in regulations promulgated by
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1 the Commission, the action of any such division of

2 the Commission, individual member of the Commis3 sion, administrative law judge, or employee, shall,

4 for all purposes, including any appeal or review of

5 such action, be deemed an action of the Commission.

6 ‘‘(c) MINIMUM REQUIREMENTS.—Pursuant to the

7 procedures described in section 9(d), after receiving rec8 ommendations from the Advisory Committee, the Commis9 sion shall establish minimum Federal standards—

10 ‘‘(1) for background investigations, licensing of

11 persons, and licensing of gaming operations associ12 ated with the conduct or regulation of class II and

13 class III gaming on Indian lands by tribal govern14 ments; and

15 ‘‘(2) for the operation of class II and class III

16 gaming activities on Indian lands, including—

17 ‘‘(A) surveillance and security personnel

18 and systems capable of monitoring all gaming

19 activities, including the conduct of games, cash20 iers’ cages, change booths, count rooms, move21 ments of cash and chips, entrances and exits to

22 gaming facilities, and other critical areas of any

23 gaming facility;
28

•S 487 IS

1 ‘‘(B) procedures for the protection of the

2 integrity of the rules for the play of games and

3 controls related to such rules;

4 ‘‘(C) credit and debit collection controls;

5 ‘‘(D) controls over gambling devices and

6 equipment; and

7 ‘‘(E) accounting and auditing.

8 ‘‘(d) COMMISSION ACCESS TO INFORMATION.—

9 ‘‘(1) IN GENERAL.—The Commission may se10 cure from any department or agency of the United

11 States information necessary to enable the Commis12 sion to carry out this Act. Unless otherwise prohib13 ited by law, upon request of the Chairperson, the

14 head of such department or agency shall furnish

15 such information to the Commission.

16 ‘‘(2) INFORMATION TRANSFER.—The Commis17 sion may secure from any law enforcement or gam18 ing regulatory agency of any State, Indian tribe, or

19 foreign nation information necessary to enable the

20 Commission to carry out this Act. Unless otherwise

21 prohibited by law, upon request of the Chairperson,

22 the head of any State or tribal law enforcement

23 agency shall furnish such information to the Com24 mission.
29

•S 487 IS

1 ‘‘(3) PRIVILEGED INFORMATION.—Notwith2 standing sections 552 and 552a of title 5, United

3 States Code, the Commission shall protect from dis4 closure information provided by Federal, State, trib5 al, or international law enforcement or gaming regu6 latory agencies.

7 ‘‘(4) LAW ENFORCEMENT AGENCY.—For pur8 poses of this subsection, the Commission shall be

9 considered a law enforcement agency.

10 ‘‘(e) INVESTIGATIONS AND ACTIONS.—

11 ‘‘(1) IN GENERAL.—

12 ‘‘(A) POSSIBLE VIOLATIONS.—The Com13 mission may, at the discretion of the Commis14 sion, and as specifically authorized by this Act,

15 conduct such investigations as the Commission

16 considers necessary to determine whether any

17 person has violated, is violating, or is conspiring

18 to violate any provision of this Act (including

19 any rule or regulation promulgated under this

20 Act). The Commission may require or permit

21 any person to file with the Commission a state22 ment in writing, under oath, or otherwise as the

23 Commission may determine, concerning all of

24 the relevant facts and circumstances regarding
30

•S 487 IS

1 the matter under investigation by the Commis2 sion pursuant to this subsection.

3 ‘‘(B) ADMINISTRATIVE INVESTIGATIONS.—

4 The Commission is authorized, at the discretion

5 of the Commission, and as specifically author6 ized by this Act, to investigate such facts, con7 ditions, practices, or matters as the Commission

8 considers necessary or proper to aid in—

9 ‘‘(i) the enforcement of any provision

10 of this Act;

11 ‘‘(ii) prescribing rules and regulations

12 under this Act; or

13 ‘‘(iii) securing information to serve as

14 a basis for recommending further legisla15 tion concerning the matters to which this

16 Act relates.

17 ‘‘(2) ADMINISTRATIVE AUTHORITIES.—

18 ‘‘(A) IN GENERAL.—For the purpose of

19 any investigation or any other proceeding con20 ducted under this Act, any member of the Com21 mission or any officer designated by the Com22 mission is empowered to administer oaths and

23 affirmations, subpoena witnesses, compel their

24 attendance, take evidence, and require the pro25 duction of any books, papers, correspondence,
31

•S 487 IS

1 memoranda, or other records that the Commis2 sion considers relevant or material to the in3 quiry. The attendance of such witnesses and the

4 production of any such records may be required

5 from any place in the United States at any des6 ignated place of hearing.

7 ‘‘(B) REQUIRING APPEARANCES OR TESTI8 MONY.—In case of contumacy by, or refusal to

9 obey any subpoena issued to, any person, the

10 Commission may invoke the jurisdiction of any

11 court of the United States within the jurisdic12 tion of which an investigation or proceeding is

13 carried on, or where such person resides or car14 ries on business, in requiring the attendance

15 and testimony of witnesses and the production

16 of books, papers, correspondence, memoranda,

17 and other records.

18 ‘‘(C) COURT ORDERS.—Any such court

19 may issue an order requiring such person to ap20 pear before the Commission or member of the

21 Commission or officer designated by the Com22 mission, there to produce records, if so ordered,

23 or to give testimony touching the matter under

24 investigation or in question, and any failure to
32

•S 487 IS

1 obey such order of the court may be punished

2 by such court as a contempt of such court.

3 ‘‘(3) ENFORCEMENT.—

4 ‘‘(A) IN GENERAL.—If the Commission de5 termines that any person is engaged, has en6 gaged, or is conspiring to engage, in any act or

7 practice constituting a violation of any provision

8 of this Act (including any rule or regulation

9 promulgated under this Act), the Commission

10 may—

11 ‘‘(i) bring an action in the appropriate

12 district court of the United States or the

13 United States District Court for the Dis14 trict of Columbia to enjoin such act or

15 practice, and upon a proper showing, the

16 court shall grant, without bond, a perma17 nent or temporary injunction or restraining

18 order; or

19 ‘‘(ii) transmit such evidence as may be

20 available concerning such act or practice as

21 may constitute a violation of any Federal

22 criminal law to the Attorney General, who

23 may institute the necessary criminal pro24 ceedings.
33

•S 487 IS

1 ‘‘(B) STATUTORY CONSTRUCTION.—The

2 authority of the Commission to conduct inves3 tigations and take actions may not be construed

4 to affect in any way the authority of any other

5 agency or department of the United States to

6 carry out statutory responsibilities of such

7 agency or department.

8 ‘‘(4) WRITS, INJUNCTIONS, AND ORDERS.—

9 Upon application of the Commission, each district

10 court of the United States shall have jurisdiction to

11 issue writs of mandamus, injunctions, and orders

12 commanding any person to comply with the provi13 sions of this Act (including any rules and regulations

14 promulgated under this Act).

15 ‘‘SEC. 8. REGULATORY FRAMEWORK.

16 ‘‘(a) CLASS II GAMING.—For class II gaming, Indian

17 tribes shall retain the right of such tribes to, in a manner

18 that meets or exceeds minimum Federal standards estab19 lished by the Commission pursuant to section 7(c)—

20 ‘‘(1) monitor and regulate such gaming; and

21 ‘‘(2) conduct background investigations and

22 issue licenses to persons who are required to obtain

23 a license under section 10(a).

24 ‘‘(b) CLASS III GAMING CONDUCTED UNDER A TRIB25 AL-STATE COMPACT.—For class III gaming conducted
34

•S 487 IS

1 under the authority of a tribal-State compact entered into

2 pursuant to section 12, an Indian tribe or a State, or both,

3 as provided in a compact or by tribal ordinance or resolu4 tion, shall, in a manner that meets or exceeds minimum

5 Federal standards established by the Commission pursu6 ant to section 7(c)—

7 ‘‘(1) monitor and regulate gaming;

8 ‘‘(2) conduct background investigations and

9 issue licenses to persons who are required to obtain

10 a license pursuant to section 10(a); and

11 ‘‘(3) establish and regulate internal control sys12 tems.

13 ‘‘(c) CERTAIN OTHER COMPACTS.—For class III

14 gaming conducted under the authority of a compact nego15 tiated with the Secretary pursuant to section 12(a)(2),

16 such compact shall provide that the Indian tribes or other

17 appropriate entity shall, in a manner that meets or ex18 ceeds minimum Federal standards established by the

19 Commission pursuant to section 7(c)—

20 ‘‘(1) monitor and regulate such gaming;

21 ‘‘(2) conduct background investigations and

22 issue licenses to persons who are required to obtain

23 a license pursuant to section 10(a); and

24 ‘‘(3) establish and regulate internal control sys25 tems.
35

•S 487 IS

1 ‘‘(d) VIOLATIONS OF MINIMUM FEDERAL STAND2 ARDS.—

3 ‘‘(1) CLASS II GAMING.—In any case in which

4 an Indian tribe that conducts class II gaming sub5 stantially fails to meet minimum Federal standards

6 for class II gaming, after providing the Indian tribe

7 notice and opportunity to cure violations and to be

8 heard, and after the exhaustion of other authorized

9 remedies and sanctions, the Commission shall have

10 the authority to conduct background investigations,

11 issue licenses, and establish and regulate internal

12 control systems. Such authority of the Commission

13 may be exclusive until such time as the regulatory

14 and internal control systems of the Indian tribe meet

15 or exceed the minimum Federal standards concern16 ing regulatory, licensing, or internal control require17 ments established by the Commission.

18 ‘‘(2) CLASS III GAMING.—In any case in which

19 an Indian tribe or a State (or both) that regulates

20 class III gaming fails to meet or exceed minimum

21 Federal standards for class III gaming, after provid22 ing notice and opportunity to cure violations and be

23 heard, and after the exhaustion of other authorized

24 remedies and sanctions, the Commission shall have

25 the authority to conduct background investigations,
36

•S 487 IS

1 issue licenses, and establish and regulate internal

2 control systems. Such authority of the Commission

3 may be exclusive until such time as the regulatory

4 or internal control systems of the Indian tribe or a

5 State, or both, meet or exceed the minimum regu6 latory, licensing, or internal control requirements es7 tablished by the Commission.

8 ‘‘SEC. 9. ADVISORY COMMITTEE ON MINIMUM REGULATORY

9 REQUIREMENTS AND LICENSING STAND10 ARDS.

11 ‘‘(a) ESTABLISHMENT.—The President shall estab12 lish an advisory committee to be known as the ‘Advisory

13 Committee on Minimum Regulatory Requirements and Li14 censing Standards’.

15 ‘‘(b) MEMBERS.—The Advisory Committee shall be

16 composed of 7 members who shall be appointed by the

17 President, of which—

18 ‘‘(1) 3 members, selected from a list of rec19 ommendations submitted to the President by the

20 Chairperson and Vice Chairperson of the Committee

21 on Indian Affairs of the Senate and the Chairperson

22 and ranking minority member of the Subcommittee

23 on Native American and Insular Affairs of the Com24 mittee on Resources of the House of Representa25 tives, shall be members of federally recognized In-
37

•S 487 IS

1 dian tribes involved in gaming covered under this

2 Act;

3 ‘‘(2) 2 members, selected from a list of rec4 ommendations submitted to the President by the

5 Majority Leader and the Minority Leader of the

6 Senate and the Speaker and the Minority Leader of

7 the House of Representatives, shall represent State

8 governments; and

9 ‘‘(3) 2 members shall each be an employee of

10 the Department of Justice.

11 ‘‘(c) RECOMMENDATIONS FOR MINIMUM FEDERAL

12 STANDARDS.—

13 ‘‘(1) IN GENERAL.—Not later than 180 days

14 after the date on which the Advisory Committee is

15 fully constituted, the Advisory Committee shall de16 velop and submit to the entities referred to in para17 graph (2) recommendations for minimum Federal

18 standards for the conduct of background investiga19 tions and the establishment of internal control sys20 tems and licensing standards.

21 ‘‘(2) RECIPIENTS OF RECOMMENDATIONS.—The

22 Advisory Committee shall submit the recommenda23 tions described in paragraph (1) to the Committee

24 on Indian Affairs of the Senate, the Subcommittee

25 on Native American and Insular Affairs of the Com-
38

•S 487 IS

1 mittee on Resources of the House of Representa2 tives, the Commission, and to each federally recog3 nized Indian tribe.

4 ‘‘(3) FACTORS FOR CONSIDERATION.—While

5 the minimum standards established pursuant to this

6 section may be developed in light of existing industry

7 standards, the Advisory Committee, and Commission

8 in promulgating standards pursuant to subsection

9 (d), shall give equal weight to—

10 ‘‘(A) the unique nature of tribal gaming as

11 compared to non-Indian commercial, govern12 mental, and charitable gaming;

13 ‘‘(B) the broad variations in the scope and

14 size of tribal gaming activity;

15 ‘‘(C) the inherent sovereign right of Indian

16 tribes to regulate their own affairs; and

17 ‘‘(D) the findings and purposes set forth in

18 sections 2 and 3.

19 ‘‘(d) REGULATIONS.—Upon receipt of the rec20 ommendations of the Advisory Committee, the Commis21 sion shall hold public hearings on the recommendations.

22 After the conclusion of the hearings, the Commission shall

23 promulgate regulations establishing minimum regulatory

24 requirements and licensing standards.
39

•S 487 IS

1 ‘‘(e) TRAVEL.—Members of the Advisory Committee

2 appointed under paragraphs (1) and (2) of subsection (b)

3 shall be reimbursed for travel and per diem in lieu of sub4 sistence expenses during the performance of duties of the

5 Advisory Committee while away from home or their regu6 lar place of business, in accordance with subchapter I of

7 chapter 57 of title 5, United States Code.

8 ‘‘(f) TERMINATION.—The Advisory Committee shall

9 cease to exist on the date that is 60 days after the date

10 on which the Advisory Committee submits the rec11 ommendations under subsection (c).

12 ‘‘(g) EXEMPTION FROM FEDERAL ADVISORY COM13 MITTEE ACT.—All activities of the Advisory Committee

14 shall be exempt from the Federal Advisory Committee Act

15 (5 U.S.C. App.).

16 ‘‘SEC. 10. LICENSING.

17 ‘‘(a) IN GENERAL.—A license issued under this Act

18 shall be required of—

19 ‘‘(1) gaming operations;

20 ‘‘(2) key employees of a gaming operation;

21 ‘‘(3) management- and gaming-related contrac22 tors;

23 ‘‘(4) any gaming service industry; and
40

•S 487 IS

1 ‘‘(5) any person who has material control, ei2 ther directly or indirectly, over a licensed gaming op3 eration.

4 ‘‘(b) CERTAIN LICENSES FOR MANAGEMENT CON5 TRACTORS AND GAMING OPERATIONS.—Notwithstanding

6 any other provision of law relating to licenses issued by

7 an Indian tribe or a State (or both) pursuant to this Act,

8 the Commission may require licenses of—

9 ‘‘(1) management contractors; and

10 ‘‘(2) gaming operations.

11 ‘‘(c) STATEMENT OF COMPLIANCE.—

12 ‘‘(1) IN GENERAL.—The Commission may issue

13 a statement of compliance to an applicant for any li14 cense or for qualification status under this Act at

15 any time that the Commission is satisfied that one

16 or more eligibility criteria for the license have been

17 satisfied by an applicant.

18 ‘‘(2) CONTENTS OF STATEMENT.—A statement

19 issued under subparagraph (A) shall specify the eli20 gibility criterion satisfied, the date of such satisfac21 tion, and a reservation by the Commission permit22 ting the Commission to revoke the statement of com23 pliance at any time on the basis of a change of cir24 cumstances affecting such compliance.

25 ‘‘(d) GAMING OPERATION LICENSE.—
41

•S 487 IS

1 ‘‘(1) IN GENERAL.—No gaming operation shall

2 operate unless all required licenses and approvals for

3 the gaming operation have been obtained in accord4 ance with this Act.

5 ‘‘(2) WRITTEN AGREEMENTS.—

6 ‘‘(A) FILING.—Prior to the operation of

7 any gaming facility or activity, each manage8 ment contract for the gaming operation shall be

9 in writing and filed with the Commission pursu10 ant to section 13.

11 ‘‘(B) EXPRESS APPROVAL REQUIRED.—No

12 such agreement shall be effective unless the

13 Commission expressly approves the agreement.

14 ‘‘(C) REQUIREMENT OF ADDITIONAL PRO15 VISIONS.—The Commission may require that an

16 agreement referred to in subparagraph (A) in17 cludes any provisions that are reasonably nec18 essary to meet the requirements of this Act.

19 ‘‘(D) INELIGIBILITY OR EXEMPTION.—Any

20 applicant who does not have the ability to exer21 cise any significant control over a licensed gam22 ing operation may be determined by the Com23 mission to be ineligible to hold a license or may

24 exempt such applicant from being required to

25 hold a license.
42

•S 487 IS

1 ‘‘(e) DENIAL OF LICENSE.—The Commission, in the

2 exercise of the specific licensure power conferred upon the

3 Commission by this Act, shall deny a license to any appli4 cant who is disqualified on the basis of a failure to meet

5 any of the minimum Federal standards promulgated by

6 the Commission pursuant to section 7(c).

7 ‘‘(f) APPLICATION FOR LICENSE.—

8 ‘‘(1) IN GENERAL.—Upon the filing of the ma9 terials specified in paragraph (2), the Commission

10 shall conduct an investigation into the qualifications

11 of an applicant. The Commission may conduct a

12 nonpublic hearing on such investigation concerning

13 the qualifications of the applicant in accordance with

14 regulations promulgated by the Commission.

15 ‘‘(2) FILING OF MATERIALS.—The Commission

16 shall carry out paragraph (1) upon the filing of—

17 ‘‘(A) an application for a license that the

18 Commission is specifically authorized to issue

19 pursuant to this Act; and

20 ‘‘(B) such supplemental information as the

21 Commission may require.

22 ‘‘(3) TIMING OF FINAL ACTION.—After an ap23 plication is submitted to the Commission, the Com24 mission shall take final action not later than 90 days

25 after—
43

•S 487 IS

1 ‘‘(A) completing all hearings and investiga2 tions concerning the application; and

3 ‘‘(B) receiving all information required to

4 be submitted to the Commission.

5 ‘‘(4) DEADLINE FOR HEARINGS AND INVES6 TIGATIONS.—Not later than 90 days after receiving

7 the information described in paragraph (3)(B), the

8 Commission shall complete the hearings and inves9 tigations described in paragraph (3)(A).

10 ‘‘(5) ACTION BY COMMISSION.—Following the

11 completion of an investigation and hearing, the

12 Commission shall either deny or grant a license to

13 an applicant.

14 ‘‘(6) DENIALS.—

15 ‘‘(A) IN GENERAL.—The Commission may

16 deny any application pursuant to this Act.

17 ‘‘(B) ORDER OF DENIAL.—If the Commis18 sion denies an application submitted under this

19 section, the Commission shall prepare an order

20 denying such application. In addition, if an ap21 plicant requests a statement of the reasons for

22 the denial, the Commission shall prepare such

23 statement and provide the statement to the ap24 plicant. The statement shall include specific

25 findings of fact.
44

•S 487 IS

1 ‘‘(7) ISSUANCE OF LICENSES.—If the Commis2 sion is satisfied that an applicant is qualified to re3 ceive a license, the Commission shall issue a license

4 to the applicant upon tender of—

5 ‘‘(A) all license fees and assessments as re6 quired by this Act (including regulations pro7 mulgated by the Commission under this Act);

8 and

9 ‘‘(B) such bonds as the Commission may

10 require for the faithful performance of all re11 quirements imposed by this Act (including regu12 lations promulgated under this Act).

13 ‘‘(8) BONDS.—

14 ‘‘(A) AMOUNTS.—The Commission shall,

15 by rules of uniform application, fix the amount

16 of each bond that the Commission requires

17 under this section in such amount as the Com18 mission considers appropriate.

19 ‘‘(B) USE OF BONDS.—The bonds fur20 nished to the Commission under this paragraph

21 may be applied by the Commission to the pay22 ment of any unpaid liability of the licensee

23 under this Act.

24 ‘‘(C) TERMS.—Each bond required in ac25 cordance with this section shall be furnished—
45

•S 487 IS

1 ‘‘(i) in cash or negotiable securities;

2 ‘‘(ii) by a surety bond guaranteed by

3 a satisfactory guarantor; or

4 ‘‘(iii) by an irrevocable letter of credit

5 issued by a banking institution acceptable

6 to the Commission.

7 ‘‘(D) TREATMENT OF PRINCIPAL AND IN8 COME.—If a bond is furnished in cash or nego9 tiable securities, the principal shall be placed

10 without restriction at the disposal of the Com11 mission, but any income shall inure to the bene12 fit of the licensee.

13 ‘‘(g) RENEWAL OF LICENSE.—

14 ‘‘(1) IN GENERAL.—

15 ‘‘(A) RENEWALS.—Subject to the power of

16 the Commission to deny, revoke, or suspend li17 censes, any license issued under this section

18 and in force shall be renewed by the Commis19 sion for the next succeeding license period upon

20 proper application for renewal and payment of

21 license fees and assessments, as required by ap22 plicable law (including regulations of the Com23 mission).

24 ‘‘(B) RENEWAL TERM.—Subject to sub25 paragraph (C), the term of a renewal period for
46

•S 487 IS

1 a license issued under this section shall be for

2 a period of not more than—

3 ‘‘(i) 2 years, for each of the first 2 re4 newal periods succeeding the initial issu5 ance of a license pursuant to subsection

6 (f); and

7 ‘‘(ii) 3 years, for each succeeding re8 newal period.

9 ‘‘(C) REOPENING HEARINGS.—The Com10 mission may reopen licensing hearings at any

11 time after the Commission has issued or re12 newed a license.

13 ‘‘(2) TRANSITION.—

14 ‘‘(A) IN GENERAL.—Notwithstanding any

15 other provision of this subsection, the Commis16 sion shall, for the purpose of facilitating the ad17 ministration of this Act, renew a license for an

18 activity covered under subsection (a) that is

19 held by a person on the date of enactment of

20 the Indian Gaming Regulatory Act Amend21 ments Act of 1995 for a renewal period of 18

22 months.

23 ‘‘(B) ACTION BEFORE EXPIRATION.—The

24 Commission shall act upon any license renewal

25 application that is filed in a timely manner
47

•S 487 IS

1 prior to the date of expiration of the then cur2 rent license.

3 ‘‘(3) FILING REQUIREMENT.—Each application

4 for renewal shall be filed with the Commission not

5 later than 90 days prior to the expiration of the then

6 current license. All license fees and assessments that

7 are required by law shall be paid to the Commission

8 on or before the date of expiration of the then cur9 rent license.

10 ‘‘(4) RENEWAL CERTIFICATE.—Upon renewal

11 of a license, the Commission shall issue an appro12 priate renewal certificate, validating device, or stick13 er, which shall be attached to the license.

14 ‘‘(h) HEARINGS.—

15 ‘‘(1) IN GENERAL.—The Commission shall es16 tablish procedures for the conduct of hearings asso17 ciated with licensing, including procedures for deny18 ing, limiting, conditioning, restricting, revoking, or

19 suspending any such license.

20 ‘‘(2) ACTION BY COMMISSION.—Following a

21 hearing conducted for any of the purposes author22 ized in this section, the Commission shall—

23 ‘‘(A) render a decision of the Commission;

24 ‘‘(B) issue an order; and
48

•S 487 IS

1 ‘‘(C) serve such decision and order upon

2 the affected parties.

3 ‘‘(3) REHEARING.—

4 ‘‘(A) IN GENERAL.—The Commission may,

5 upon a motion made not later than 10 days

6 after the service of a decision and order, order

7 a rehearing before the Commission on such

8 terms and conditions as the Commission consid9 ers just and proper if the Commission finds

10 cause to believe that the decision and order

11 should be reconsidered in view of the legal, pol12 icy, or factual matters that are—

13 ‘‘(i) advanced by the party that makes

14 the motion; or

15 ‘‘(ii) raised by the Commission on a

16 motion made by the Commission.

17 ‘‘(B) ACTION AFTER REHEARING.—Follow18 ing a rehearing conducted by the Commission,

19 the Commission shall—

20 ‘‘(i) render a decision of the Commis21 sion;

22 ‘‘(ii) issue an order; and

23 ‘‘(iii) serve such decision and order

24 upon the affected parties.
49

•S 487 IS

1 ‘‘(C) FINAL AGENCY ACTION.—A decision

2 and order made by the Commission under para3 graph (2) (if no motion for a rehearing is

4 made), or a decision and order made by the

5 Commission upon rehearing shall constitute

6 final agency action for purposes of judicial re7 view.

8 ‘‘(4) JURISDICTION.—The United States Court

9 of Appeals for the District of Columbia Circuit shall

10 have jurisdiction to review the licensing decisions

11 and orders of the Commission.

12 ‘‘(i) LICENSE REGISTRY.—The Commission shall—

13 ‘‘(1) maintain a registry of all licenses that are

14 granted or denied pursuant to this Act; and

15 ‘‘(2) make the information contained in the reg16 istry available to Indian tribes to assist the licensure

17 and regulatory activities of Indian tribes.

18 ‘‘SEC. 11. REQUIREMENTS FOR THE CONDUCT OF CLASS I

19 AND CLASS II GAMING ON INDIAN LANDS.

20 ‘‘(a) CLASS I GAMING.—Class I gaming on Indian

21 lands shall be within the exclusive jurisdiction of the In22 dian tribes and shall not be subject to the provisions of

23 this Act.

24 ‘‘(b) CLASS II GAMING.—
50

•S 487 IS

1 ‘‘(1) IN GENERAL.—Any class II gaming on In2 dian lands shall be within the jurisdiction of the In3 dian tribes, but shall be subject to the provisions of

4 this Act.

5 ‘‘(2) LEGAL ACTIVITIES.—An Indian tribe may

6 engage in, and license and regulate, class II gaming

7 on Indian lands within the jurisdiction of such tribe,

8 if—

9 ‘‘(A) such Indian gaming is located within

10 a State that permits such gaming for any pur11 pose by any person; and

12 ‘‘(B) the class II gaming operation meets

13 or exceeds the requirements of sections 7(c) and

14 10.

15 ‘‘(3) REQUIREMENTS FOR CLASS II GAMING OP16 ERATIONS.—

17 ‘‘(A) IN GENERAL.—The Commission shall

18 ensure that with regard to any class II gaming

19 operation on Indian lands—

20 ‘‘(i) a separate license is issued by the

21 Indian tribe for each place, facility, or lo22 cation on Indian lands at which class II

23 gaming is conducted;

24 ‘‘(ii) the Indian tribe has or will have

25 the sole proprietary interest and respon-
51

•S 487 IS

1 sibility for the conduct of any class II gam2 ing activity, unless the conditions of clause

3 (ix) apply;

4 ‘‘(iii) the net revenues from any class

5 II gaming activity may only be used—

6 ‘‘(I) to fund tribal government

7 operations or programs;

8 ‘‘(II) to provide for the general

9 welfare of the Indian tribe and the

10 members of the Indian tribe;

11 ‘‘(III) to promote tribal economic

12 development;

13 ‘‘(IV) to donate to charitable or14 ganizations;

15 ‘‘(V) to help fund operations of

16 local government agencies; or

17 ‘‘(VI) to comply with the provi18 sions of section 17;

19 ‘‘(iv) the Indian tribe shall provide to

20 the Commission annual outside audits of

21 the class II gaming operation of the Indian

22 tribe, which may be encompassed within

23 existing independent tribal audit systems;

24 ‘‘(v) all contracts for supplies, serv25 ices, or concessions for a contract amount
52

•S 487 IS

1 equal to more than $50,000 per year,

2 other than contracts for professional legal

3 or accounting services, relating to such

4 gaming shall be subject to such independ5 ent audits and any audit conducted by the

6 Commission;

7 ‘‘(vi) the construction and mainte8 nance of a class II gaming facility and the

9 operation of class II gaming shall be con10 ducted in a manner that adequately pro11 tects the environment and public health

12 and safety;

13 ‘‘(vii) there shall be instituted an ade14 quate system that—

15 ‘‘(I) ensures that—

16 ‘‘(aa) background investiga17 tions are conducted on primary

18 management officials, key em19 ployees, and persons having ma20 terial control, either directly or

21 indirectly, in a licensed class II

22 gaming operation, and gaming23 related contractors associated

24 with a licensed class II gaming

25 operation; and
53

•S 487 IS

1 ‘‘(bb) oversight of such offi2 cials and the management by

3 such officials is conducted on an

4 ongoing basis; and

5 ‘‘(II) includes—

6 ‘‘(aa) tribal licenses for per7 sons involved in class II gaming

8 operations, issued in accordance

9 with sections 7(c) and 10;

10 ‘‘(bb) a standard whereby

11 any person whose prior activities,

12 criminal record, if any, or reputa13 tion, habits, and associations

14 pose a threat to the public inter15 est or to the effective regulation

16 of gaming, or create or enhance

17 the dangers of unsuitable, unfair,

18 or illegal practices and methods

19 and activities in the conduct of

20 gaming shall not be eligible for

21 employment or licensure; and

22 ‘‘(cc) notification by the In23 dian tribe to the Commission of

24 the results of such background
54

•S 487 IS

1 investigation before the issuance

2 of any such license;

3 ‘‘(viii) net revenues from any class II

4 gaming activities conducted or licensed by

5 any Indian tribal government may be used

6 to make per capita payments to members

7 of the Indian tribe only if—

8 ‘‘(I) the Indian tribe has pre9 pared a plan to allocate revenues to

10 uses authorized by clause (iii);

11 ‘‘(II) the Secretary determines

12 that the plan is adequate, particularly

13 with respect to uses described in

14 subclause (I) or (III) of clause (iii);

15 ‘‘(III) the interests of minors and

16 other legally incompetent persons who

17 are entitled to receive any of the per

18 capita payments are protected and

19 preserved;

20 ‘‘(IV) the per capita payments to

21 minors and other legally incompetent

22 persons are disbursed to the parents

23 or legal guardians of such minors or

24 legally incompetent persons in such

25 amounts as may be necessary for the
55

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1 health, education, or welfare of each

2 such minor or legally incompetent per3 son under a plan approved by the Sec4 retary and the governing body of the

5 Indian tribe; and

6 ‘‘(V) the per capita payments are

7 subject to Federal income taxation

8 and Indian tribes withhold such taxes

9 when such payments are made;

10 ‘‘(ix) a separate license shall be issued

11 by the Indian tribe for any class II gaming

12 operation owned by any person or entity

13 other than the Indian tribe and conducted

14 on Indian lands, that includes—

15 ‘‘(I) requirements set forth in

16 subparagraph (C); and

17 ‘‘(II) requirements that are at

18 least as restrictive as those established

19 by State law governing similar gaming

20 within the jurisdiction of the State

21 within which such Indian lands are lo22 cated; and

23 ‘‘(x) no person or entity, other than

24 the Indian tribe, shall be eligible to receive

25 a tribal license to own a class II gaming
56

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1 operation conducted on Indian lands within

2 the jurisdiction of the Indian tribe if such

3 person or entity would not be eligible to re4 ceive a State license to conduct the same

5 activity within the jurisdiction of the State.

6 ‘‘(B) TRANSITION.—

7 ‘‘(i) IN GENERAL.—Clauses (ii), (iii),

8 and (ix) shall not bar the continued oper9 ation of an individually owned class II

10 gaming operation that was operating on

11 September 1, 1986, if—

12 ‘‘(I) such gaming operation is li13 censed and regulated by an Indian

14 tribe;

15 ‘‘(II) income to the Indian tribe

16 from such gaming is used only for the

17 purposes described in subparagraph

18 (A)(iii);

19 ‘‘(III) not less than 60 percent of

20 the net revenues from such gaming

21 operation is income to the licensing

22 Indian tribe; and

23 ‘‘(IV) the owner of such gaming

24 operation pays an appropriate assess25 ment to the Commission pursuant to
57

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1 section 17 for the regulation of such

2 gaming.

3 ‘‘(ii) LIMITATIONS ON EXEMPTION.—

4 The exemption from application provided

5 under clause (i) may not be transferred to

6 any person or entity and shall remain in

7 effect only during such period as the gam8 ing operation remains within the same na9 ture and scope as such gaming operation

10 was actually operated on October 17,

11 1988.

12 ‘‘(C) LIST.—The Commission shall—

13 ‘‘(i) maintain a list of each individ14 ually owned gaming operation that is sub15 ject to subparagraph (A)(x); and

16 ‘‘(ii) publish such list in the Federal

17 Register.

18 ‘‘(c) PETITION FOR CERTIFICATE OF SELF-REGULA19 TION.—

20 ‘‘(1) IN GENERAL.—Any Indian tribe that oper21 ates, directly or with a management contract, a class

22 II gaming activity may petition the Commission for

23 a certificate of self-regulation if that Indian tribe—

24 ‘‘(A) has continuously conducted such ac25 tivity for a period of not less than 3 years, in-
58

•S 487 IS

1 cluding a period of at least 1 year after the

2 date of the enactment of the Indian Gaming

3 Regulatory Act Amendments Act of 1995; and

4 ‘‘(B) has otherwise complied with the pro5 visions of this Act.

6 ‘‘(2) ISSUANCE OF CERTIFICATE OF SELF-REG7 ULATION.—The Commission shall issue a certificate

8 of self-regulation if the Commission determines on

9 the basis of available information, and after a hear10 ing if requested by the tribe, that the Indian tribe

11 has—

12 ‘‘(A) conducted its gaming activity in a

13 manner which has—

14 ‘‘(i) resulted in an effective and hon15 est accounting of all revenues;

16 ‘‘(ii) resulted in a reputation for safe,

17 fair, and honest operation of the activity;

18 and

19 ‘‘(iii) been generally free of evidence

20 of criminal or dishonest activity;

21 ‘‘(B) adopted and implemented adequate

22 systems for—

23 ‘‘(i) accounting for all revenues from

24 the activity;
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1 ‘‘(ii) investigation, licensing, and mon2 itoring of all employees of the gaming ac3 tivity; and

4 ‘‘(iii) investigation, enforcement, and

5 prosecution of violations of its gaming or6 dinance and regulations;

7 ‘‘(C) conducted the operation on a fiscally

8 and economically sound basis; and

9 ‘‘(D) paid all fees and assessments that

10 the tribe is required to pay to the Commission

11 under this Act.

12 ‘‘(3) EFFECT OF CERTIFICATE OF SELF-REGU13 LATION.—During the period in which a certificate of

14 self-regulation issued under this paragraph is in ef15 fect with respect to a gaming activity conducted by

16 an Indian tribe—

17 ‘‘(A) the tribe shall—

18 ‘‘(i) continue to submit an annual

19 independent audit as required by sub20 section (b)(3)(A)(iv); and

21 ‘‘(ii) submit to the Commission a com22 plete r ́esum ́e of each employee hired and li23 censed by the tribe subsequent to the issu24 ance of a certificate of self-regulation; and
60

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1 ‘‘(B) the Commission may not assess a fee

2 on such activity pursuant to section 17 in excess of 1 3 ⁄4 of 1 percent of the gross revenue

4 from such activity.

5 ‘‘(4) RESCISSION.—The Commission may, for

6 just cause and after an opportunity for a hearing,

7 rescind a certificate of self-regulation by majority

8 vote of the members of the Commission.

9 ‘‘(d) LICENSE REVOCATION.—If, after the issuance

10 of any license by an Indian tribe under this section, the

11 Indian tribe receives reliable information from the Com12 mission indicating that a licensee does not meet any stand13 ard established under section 7(c) or 10, or any other ap14 plicable regulation promulgated by the Commission, the

15 Indian tribe—

16 ‘‘(1) shall suspend such license; and

17 ‘‘(2) after notice and hearing under procedures

18 established pursuant to applicable tribal law, may

19 revoke such license.

20 ‘‘SEC. 12. CLASS III GAMING ON INDIAN LANDS.

21 ‘‘(a) REQUIREMENTS FOR THE CONDUCT OF CLASS

22 III GAMING ON INDIAN LANDS.—

23 ‘‘(1) IN GENERAL.—Class III gaming activities

24 shall be lawful on Indian lands only if such activities

25 are—
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1 ‘‘(A) authorized by a compact that—

2 ‘‘(i) is approved pursuant to tribal law

3 by the governing body of the Indian tribe

4 having jurisdiction over such lands;

5 ‘‘(ii) meets the requirements of sec6 tion 11(b)(3) for the conduct of class II

7 gaming; and

8 ‘‘(iii) is approved by the Secretary;

9 ‘‘(B) located in a State that permits such

10 gaming for any purpose by any person; and

11 ‘‘(C) conducted in conformance with a trib12 al-State compact that—

13 ‘‘(i) is in effect; and

14 ‘‘(ii) is—

15 ‘‘(I) entered into by an Indian

16 tribe and a State and approved by the

17 Secretary under paragraph (2); or

18 ‘‘(II) issued by the Secretary

19 under paragraph (2).

20 ‘‘(2) COMPACT NEGOTIATIONS.—

21 ‘‘(A) IN GENERAL.—

22 ‘‘(i) COMPACT NEGOTIATIONS.—Any

23 Indian tribe having jurisdiction over the

24 lands upon which a class III gaming activ25 ity is to be conducted may request the
62

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1 State in which such lands are located to

2 enter into negotiations for the purpose of

3 entering into a tribal-State compact gov4 erning the conduct of class III gaming ac5 tivities.

6 ‘‘(ii) REQUIREMENTS FOR REQUEST

7 FOR NEGOTIATIONS.—A request for nego8 tiations under clause (i) shall be in writing

9 and shall specify each gaming activity that

10 the Indian tribe proposes for inclusion in

11 the compact. Not later than 30 days after

12 receipt of such written request, the State

13 shall respond to the Indian tribe.

14 ‘‘(iii) COMMENCEMENT OF COMPACT

15 NEGOTIATIONS.—Compact negotiations

16 conducted under this paragraph shall com17 mence not later than 30 days after the

18 date on which a response by a State is due

19 to the Indian tribe, and shall be completed

20 not later than 120 days after the initiation

21 of compact negotiations, unless the State

22 and the Indian tribe agree to a different

23 period of time for the completion of com24 pact negotiations.
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1 ‘‘(iv) INABILITY TO MEET DEADLINES

2 FOR NEGOTIATIONS.—

3 ‘‘(I) NOTIFICATION.—If the

4 State and the Indian tribe find that

5 the State and Indian tribe are unable

6 to commence or complete compact ne7 gotiations within the applicable time

8 periods provided in this subsection,

9 the Indian tribe shall notify the Sec10 retary.

11 ‘‘(II) PRESENTATION OF POSI12 TIONS.—Upon receipt of a notice

13 under subclause (I), the Secretary

14 shall request that the tribe and the

15 State present their respective posi16 tions, not later than 60 days after

17 such request, regarding—

18 ‘‘(aa) the gaming activities

19 that the tribe seeks to conduct

20 that are permissible under this

21 Act;

22 ‘‘(bb) the framework for reg23 ulation of tribal gaming; and
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•S 487 IS

1 ‘‘(cc) such other matters as

2 the Secretary may consider ap3 propriate.

4 ‘‘(B) APPROVAL OF COMPACT.—Not later

5 than 90 days after the date of expiration of the

6 60-day period specified in subparagraph (A),

7 the Secretary shall approve a compact that

8 meets the requirements of this section, and

9 shall publish the compact in the Federal Reg10 ister. The compact shall—

11 ‘‘(i) include provisions—

12 ‘‘(I) that best meet the objectives

13 of this Act; and

14 ‘‘(II) for background investiga15 tions, internal controls, and licensing

16 that are consistent with this Act (in17 cluding regulations promulgated by

18 the Commission pursuant to section

19 7(c)); and

20 ‘‘(ii) not violate—

21 ‘‘(I) any provision of this Act (in22 cluding regulations promulgated by

23 the Commission pursuant to this Act);

24 ‘‘(II) any other provision of Fed25 eral law; or
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1 ‘‘(III) the trust obligation of the

2 United States to Indians.

3 ‘‘(C) MANDATORY DISAPPROVAL.—Not4 withstanding any other provision of this Act,

5 the Secretary shall not have the authority to

6 approve a compact if the compact requires

7 State regulation of Indian gaming absent the

8 consent of the State or the Indian tribe.

9 ‘‘(D) EFFECT OF PUBLICATION OF COM10 PACT.—Except for an appeal conducted under

11 subchapter II of chapter 5 of title 5, United

12 States Code, by an Indian tribe or a State asso13 ciated with the publication of the compact, the

14 publication of a compact pursuant to subpara15 graph (B) that permits a form of class III gam16 ing shall, for the purposes of this Act, be con17 clusive evidence that such class III gaming is

18 an activity subject to negotiations under the

19 laws of the State where the gaming is to be

20 conducted, in any matter under consideration

21 by the Commission or a Federal court.

22 ‘‘(E) EFFECTIVE DATE OF COMPACT.—

23 Any compact negotiated under this subsection

24 shall become effective upon the publication of
66

•S 487 IS

1 the compact in the Federal Register by the Sec2 retary.

3 ‘‘(F) DUTIES OF COMMISSION.—Consistent

4 with the provisions of sections 7(c), 8, and 10,

5 the Commission shall monitor and, if specifi6 cally authorized, regulate and license class III

7 gaming with respect to any compact that is ap8 proved by the Secretary under this subsection

9 and published in the Federal Register.

10 ‘‘(3) PROVISIONS OF COMPACTS.—

11 ‘‘(A) IN GENERAL.—A compact negotiated

12 under this subsection may include provisions re13 lating to—

14 ‘‘(i) the application of the criminal

15 and civil laws (including regulations) of the

16 Indian tribe or the State that are directly

17 related to, and necessary for, the licensing

18 and regulation of such activity in a manner

19 consistent with sections 7(c), 8, and 10;

20 ‘‘(ii) the allocation of criminal and

21 civil jurisdiction between the State and the

22 Indian tribe necessary for the enforcement

23 of such laws (including regulations);

24 ‘‘(iii) the assessment by the State of

25 the costs associated with such activities in
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1 such amounts as are necessary to defray

2 the costs of regulating such activity;

3 ‘‘(iv) taxation by the Indian tribe of

4 such activity in amounts comparable to

5 amounts assessed by the State for com6 parable activities;

7 ‘‘(v) remedies for breach of compact

8 provisions;

9 ‘‘(vi) standards for the operation of

10 such activity and maintenance of the gam11 ing facility, including licensing, in a man12 ner consistent with sections 7(c), 8, and

13 10; and

14 ‘‘(vii) any other subject that is di15 rectly related to the operation of gaming

16 activities and the impact of gaming on

17 tribal, State, and local governments.

18 ‘‘(B) STATUTORY CONSTRUCTION WITH

19 RESPECT TO ASSESSMENTS.—Except for any

20 assessments for services agreed to by an Indian

21 tribe in compact negotiations, nothing in this

22 section may be construed as conferring upon a

23 State or any political subdivision thereof the au24 thority to impose any tax, fee, charge, or other

25 assessment upon an Indian tribe, an Indian
68

•S 487 IS

1 gaming operation or the value generated by the

2 gaming operation, or any person or entity au3 thorized by an Indian tribe to engage in a class

4 III gaming activity in conformance with this

5 Act.

6 ‘‘(4) STATUTORY CONSTRUCTION WITH RE7 SPECT TO CERTAIN RIGHTS OF INDIAN TRIBES.—

8 Nothing in this subsection impairs the right of an

9 Indian tribe to regulate class III gaming on the In10 dian lands of the Indian tribe concurrently with a

11 State and the Commission, except to the extent that

12 such regulation is inconsistent with, or less stringent

13 than, this Act or any laws (including regulations)

14 made applicable by any compact entered into by the

15 Indian tribe under this subsection that is in effect.

16 ‘‘(5) EXEMPTION.—The provisions of section 2

17 of the Act of January 2, 1951 (commonly referred

18 to as the ‘Gambling Devices Transportation Act’)

19 (64 Stat. 1134, chapter 1194, 15 U.S.C. 1175) shall

20 not apply to any class II gaming activity or any

21 gaming activity conducted pursuant to a compact

22 entered into after the date of enactment of this Act,

23 but in no event shall this paragraph be construed as

24 invalidating any exemption from the provisions of
69

•S 487 IS

1 such section 2 for any compact entered into prior to

2 the date of enactment of this Act.

3 ‘‘(b) JURISDICTION OF UNITED STATES DISTRICT

4 COURT FOR THE DISTRICT OF COLUMBIA.—The United

5 States District Court for the District of Columbia shall

6 have jurisdiction over any action initiated by the Sec7 retary, the Commission, a State, or an Indian tribe to en8 force any provision of a compact entered into under sub9 section (a) or to enjoin a class III gaming activity located

10 on Indian lands and conducted in violation of any compact

11 that is in effect and that was entered into under sub12 section (a).

13 ‘‘(c) APPROVAL OF COMPACTS.—

14 ‘‘(1) IN GENERAL.—The Secretary is authorized

15 to approve any compact between an Indian tribe and

16 a State governing the conduct of class III gaming on

17 Indian lands of such Indian tribe entered into under

18 subsection (a).

19 ‘‘(2) REASONS FOR DISAPPROVAL BY SEC20 RETARY.—The Secretary may disapprove a compact

21 entered into under subsection (a) only if such com22 pact violates any—

23 ‘‘(A) provision of this Act or any regula24 tion promulgated by the Commission pursuant

25 to this Act;
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•S 487 IS

1 ‘‘(B) other provision of Federal law; or

2 ‘‘(C) trust obligation of the United States

3 to Indians.

4 ‘‘(3) EFFECT OF FAILURE TO ACT ON COM5 PACT.—If the Secretary fails to approve or dis6 approve a compact entered into under subsection (a)

7 before the date that is 45 days after the date on

8 which the compact is submitted to the Secretary for

9 approval, the compact shall be considered to have

10 been approved by the Secretary, but only to the ex11 tent the compact is consistent with the provisions of

12 this Act and the regulations promulgated by the

13 Commission pursuant to this Act.

14 ‘‘(4) NOTIFICATION.—The Secretary shall pub15 lish in the Federal Register notice of any compact

16 that is approved, or considered to have been ap17 proved, under this subsection.

18 ‘‘(d) REVOCATION OF ORDINANCE.—

19 ‘‘(1) IN GENERAL.—The governing body of an

20 Indian tribe, in its sole discretion, may adopt an or21 dinance or resolution revoking any prior ordinance

22 or resolution that authorized class III gaming on the

23 Indian lands of the Indian tribe. Such revocation

24 shall render class III gaming illegal on the Indian

25 lands of such Indian tribe.
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1 ‘‘(2) PUBLICATION OF REVOCATION.—An In2 dian tribe shall submit any revocation ordinance or

3 resolution described in paragraph (1) to the Com4 mission. The Commission shall publish such ordi5 nance or resolution in the Federal Register. The rev6 ocation provided by such ordinance or resolution

7 shall take effect on the date of such publication.

8 ‘‘(3) CONDITIONAL OPERATION.—Notwithstand9 ing any other provision of this subsection—

10 ‘‘(A) any person or entity operating a class

11 III gaming activity pursuant to this paragraph

12 on the date on which an ordinance or resolution

13 described in paragraph (1) that revokes author14 ization for such class III gaming activity is pub15 lished in the Federal Register may, during the

16 1-year period beginning on the date on which

17 such revocation, ordinance, or resolution is pub18 lished under paragraph (2), continue to operate

19 such activity in conformance with an applicable

20 compact entered into under subsection (a) that

21 is in effect; and

22 ‘‘(B) any civil action that arises before,

23 and any crime that is committed before, the

24 termination of such 1-year period shall not be
72

•S 487 IS

1 affected by such revocation ordinance, or reso2 lution.

3 ‘‘(e) CERTAIN CLASS III GAMING ACTIVITIES.—

4 ‘‘(1) COMPACTS ENTERED INTO BEFORE THE

5 DATE OF ENACTMENT OF THE INDIAN GAMING REG6 ULATORY ACT AMENDMENTS ACT OF 1995.—Class

7 III gaming activities that are authorized under a

8 compact approved or issued by the Secretary under

9 the authority of this Act prior to the date of enact10 ment of the Indian Gaming Regulatory Act Amend11 ments Act of 1995 shall, during such period as the

12 compact is in effect, remain lawful for the purposes

13 of this Act, notwithstanding the Indian Gaming Reg14 ulatory Act Amendments Act of 1995 and the

15 amendments made by such Act or any change in

16 State law enacted after the approval or issuance of

17 the compact.

18 ‘‘(2) COMPACT ENTERED INTO AFTER THE

19 DATE OF ENACTMENT OF THE INDIAN GAMING REG20 ULATORY ACT AMENDMENTS ACT OF 1995.—Any

21 compact entered into under subsection (a) after the

22 date specified in paragraph (1) shall remain lawful

23 for the purposes of this Act, notwithstanding any

24 change in State law enacted after the approval or is25 suance of the compact.
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•S 487 IS

1 ‘‘SEC. 13. REVIEW OF CONTRACTS.

2 ‘‘(a) CONTRACTS INCLUDED.—The Commission shall

3 review and approve or disapprove—

4 ‘‘(1) any management contract for the oper5 ation and management of any gaming activity that

6 an Indian tribe may engage in under this Act; and

7 ‘‘(2) unless licensed by an Indian tribe consist8 ent with the minimum Federal standards adopted

9 pursuant to section 7(c), any gaming-related con10 tract.

11 ‘‘(b) MANAGEMENT CONTRACT REQUIREMENTS.—

12 The Commission shall approve any management contract

13 between an Indian tribe and a person licensed by an In14 dian tribe or the Commission that is entered into pursuant

15 to this Act only if the Commission determines that the

16 contract provides for—

17 ‘‘(1) adequate accounting procedures that are

18 maintained, and verifiable financial reports that are

19 prepared by or for, the governing body of the Indian

20 tribe on a monthly basis;

21 ‘‘(2) access to the daily gaming operations by

22 appropriate officials of the Indian tribe who shall

23 have the right to verify the daily gross revenues and

24 income derived from any gaming activity;
74

•S 487 IS

1 ‘‘(3) a minimum guaranteed payment to the In2 dian tribe that has preference over the retirement of

3 any development and construction costs;

4 ‘‘(4) an agreed upon ceiling for the repayment

5 of any development and construction costs;

6 ‘‘(5) a contract term of not to exceed 5 years,

7 except that, upon the request of an Indian tribe, the

8 Commission may authorize a contract term that ex9 ceeds 5 years but does not exceed 7 years, if the

10 Commission is satisfied that the capital investment

11 required, and the income projections for the particu12 lar gaming activity, require the additional time; and

13 ‘‘(6) grounds and mechanisms for the termi14 nation of the contract, but any such termination

15 shall not require the approval of the Commission.

16 ‘‘(c) MANAGEMENT FEE BASED ON PERCENTAGE OF

17 NET REVENUES.—

18 ‘‘(1) PERCENTAGE FEE.—The Commission may

19 approve a management contract that provides for a

20 fee that is based on a percentage of the net revenues

21 of a tribal gaming activity if the Commission deter22 mines that such percentage fee is reasonable, taking

23 into consideration surrounding circumstances.

24 ‘‘(2) FEE AMOUNT.—Except as provided in

25 paragraph (3), a fee described in paragraph (1) shall
75

•S 487 IS

1 not exceed an amount equal to 30 percent of the net

2 revenues described in such paragraph.

3 ‘‘(3) EXCEPTION.—Upon the request of an In4 dian tribe, if the Commission is satisfied that the

5 capital investment required, and income projections

6 for, a tribal gaming activity, necessitate a fee in ex7 cess of the amount specified in paragraph (2), the

8 Commission may approve a management contract

9 that provides for a fee described in paragraph (1) in

10 an amount in excess of the amount specified in para11 graph (2), but not to exceed 40 percent of the net

12 revenues described in paragraph (1).

13 ‘‘(d) GAMING-RELATED CONTRACT REQUIRE14 MENTS.—The Commission shall approve a gaming-related

15 contract covered under subsection (a)(2) that is entered

16 into pursuant to this Act only if the Commission deter17 mines that the contract provides for—

18 ‘‘(1) grounds and mechanisms for termination

19 of the contract, but such termination shall not re20 quire the approval of the Commission; and

21 ‘‘(2) such other provisions as the Commission

22 may be empowered to impose by this Act.

23 ‘‘(e) TIME PERIOD FOR REVIEW.—

24 ‘‘(1) IN GENERAL.—Except as provided in para25 graph (2), not later than 90 days after the date on
76

•S 487 IS

1 which a management contract or other gaming-relat2 ed contract is submitted to the Commission for ap3 proval, the Commission shall approve or disapprove

4 such contract on the merits of the contract. The

5 Commission may extend the 90-day period for an

6 additional period of not more than 45 days if the

7 Commission notifies the Indian tribe in writing of

8 the reason for the extension of the period. The In9 dian tribe may bring an action in the United States

10 District Court for the District of Columbia to com11 pel action by the Commission if a contract has not

12 been approved or disapproved by the termination

13 date of an applicable period under this subsection.

14 ‘‘(2) EFFECT OF FAILURE OF COMMISSION TO

15 ACT ON CERTAIN GAMING-RELATED CONTRACT.—

16 Any gaming-related contract for an amount less

17 than or equal to $100,000 that is submitted to the

18 Commission pursuant to paragraph (1) by a person

19 who holds a valid license that is in effect under this

20 Act shall be deemed to be approved, if by the date

21 that is 90 days after the contract is submitted to the

22 Commission, the Commission fails to approve or dis23 approve the contract.
77

•S 487 IS

1 ‘‘(f) CONTRACT MODIFICATIONS AND VOID CON2 TRACTS.—The Commission, after providing notice and

3 hearing—

4 ‘‘(1) shall have the authority to require appro5 priate contract modifications to ensure compliance

6 with the provisions of this Act; or

7 ‘‘(2) may void any contract regulated by the

8 Commission under this Act if the Commission deter9 mines that any of the provisions of this Act have

10 been violated by the terms of the contract.

11 ‘‘(g) INTERESTS IN REAL PROPERTY.—No contract

12 regulated by this Act may transfer or, in any other man13 ner, convey any interest in land or other real property,

14 unless specific statutory authority exists, all necessary ap15 provals for such transfer or conveyance have been ob16 tained, and such transfer or conveyance is clearly specified

17 in the contract.

18 ‘‘(h) AUTHORITY OF THE SECRETARY.—The author19 ity of the Secretary under section 2103 of the Revised

20 Statutes (25 U.S.C. 81) shall not extend to any contract

21 or agreement that is regulated pursuant to this Act.

22 ‘‘(i) DISAPPROVAL OF CONTRACTS.—The Commis23 sion may not approve a contract if the Commission deter24 mines that—
78

•S 487 IS

1 ‘‘(1) any person having a direct financial inter2 est in, or management responsibility for, such con3 tract, and, in the case of a corporation, any individ4 ual who serves on the board of directors of such cor5 poration, and any of the stockholders who hold (di6 rectly or indirectly) 10 percent or more of its issued

7 and outstanding stock—

8 ‘‘(A) is an elected member of the governing

9 body of the Indian tribe which is a party to the

10 contract;

11 ‘‘(B) has been convicted of any felony or

12 gaming offense;

13 ‘‘(C) has knowingly and willfully provided

14 materially important false statements or infor15 mation to the Commission or the Indian tribe

16 pursuant to this Act or has refused to respond

17 to questions propounded by the Commission; or

18 ‘‘(D) has been determined to be a person

19 whose prior activities, criminal record, if any, or

20 reputation, habits, and associations pose a

21 threat to the public interest or to the effective

22 regulation and control of gaming, or create or

23 enhance the dangers of unsuitable, unfair, or il24 legal practices, methods, and activities in the

25 conduct of gaming or the carrying on of the
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•S 487 IS

1 business and financial arrangements incidental

2 thereto;

3 ‘‘(2) the contractor—

4 ‘‘(A) has unduly interfered or influenced

5 for its gain or advantage any decision or proc6 ess of tribal government relating to the gaming

7 activity; or

8 ‘‘(B) has attempted to interfere or influ9 ence a decision pursuant to subparagraph (A);

10 ‘‘(3) the contractor has deliberately or substan11 tially failed to comply with the terms of the contract;

12 or

13 ‘‘(4) a trustee, exercising the skill and diligence

14 that a trustee is commonly held to, would not ap15 prove the contract.

16 ‘‘SEC. 14. REVIEW OF EXISTING CONTRACTS; INTERIM AU17 THORITY.

18 ‘‘(a) REVIEW OF EXISTING CONTRACTS.—

19 ‘‘(1) IN GENERAL.—At any time after the Com20 mission is sworn in and has promulgated regulations

21 for the implementation of this Act, the Commission

22 shall notify each Indian tribe and management con23 tractor who, prior to the enactment of the Indian

24 Gaming Regulatory Act Amendments Act of 1995,

25 entered into a management contract that was ap-
80

•S 487 IS

1 proved by the Secretary, that the Indian tribe is re2 quired to submit to the Commission such contract,

3 including all collateral agreements relating to the

4 gaming activity, for review by the Commission not

5 later than 60 days after such notification. Any such

6 contract shall be valid under this Act, unless the

7 contract is disapproved by the Commission under

8 this section.

9 ‘‘(2) REVIEW.—

10 ‘‘(A) IN GENERAL.—Not later than 180

11 days after the submission of a management

12 contract, including all collateral agreements, to

13 the Commission pursuant to this section, the

14 Commission shall review the contract to deter15 mine whether the contract meets the require16 ments of section 13 and was entered into in ac17 cordance with the procedures under such sec18 tion.

19 ‘‘(B) APPROVAL OF CONTRACT.—The

20 Commission shall approve a management con21 tract submitted for review under subsection (a)

22 if the Commission determines that—

23 ‘‘(i) the management contract meets

24 the requirements of section 13; and
81

•S 487 IS

1 ‘‘(ii) the management contractor has

2 obtained all of the licenses that the con3 tractor is required to obtain under this

4 Act.

5 ‘‘(C) NOTIFICATION OF NECESSARY MODI6 FICATIONS.—If the Commission determines that

7 a contract submitted under this section does

8 not meet the requirements of section 13, the

9 Commission shall provide written notification to

10 the parties to such contract of the necessary

11 modifications and the parties shall have 180

12 days to make the modifications.

13 ‘‘(b) INTERIM AUTHORITY OF THE NATIONAL INDIAN

14 GAMING COMMISSION.—

15 ‘‘(1) IN GENERAL.—Notwithstanding any other

16 provision of this Act, the Chairperson and the asso17 ciate members of the National Indian Gaming Com18 mission who are holding office on the date of enact19 ment of this Act shall exercise those authorities vest20 ed in the Federal Indian Gaming Regulatory Com21 mission by this Act until such time as the members

22 of the Federal Indian Gaming Regulatory Commis23 sion are sworn into office.

24 ‘‘(2) TRANSITION.—Notwithstanding any other

25 provision of law, the Commission shall exercise the
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1 authority conferred on the Commission by this Act,

2 and until such time as the Commission promulgates

3 revised regulations after the date of enactment of

4 the Indian Gaming Regulatory Act Amendments Act

5 of 1995, the regulations issued under this Act, as in

6 effect on the day before such date of enactment,

7 shall apply.

8 ‘‘SEC. 15. CIVIL PENALTIES.

9 ‘‘(a) AMOUNT.—Any person who commits any act or

10 causes to be done any act that violates any provision of

11 this Act or the rules or regulations promulgated under this

12 Act, or who fails to carry out any act or causes the failure

13 to carry out any act that is required by any such provision

14 of law shall be subject to a civil penalty in an amount

15 equal to not more than $50,000 per day for each such

16 violation.

17 ‘‘(b) ASSESSMENT AND COLLECTION.—

18 ‘‘(1) IN GENERAL.—Each civil penalty assessed

19 under this section shall be assessed by the Commis20 sion and collected in a civil action brought by the

21 Attorney General on behalf of the United States.

22 Before the Commission refers civil penalty claims to

23 the Attorney General, the Commission may com24 promise the civil penalty after affording the person

25 charged with a violation referred to in subsection
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1 (a), an opportunity to present views and evidence in

2 support of such action by the Commission to estab3 lish that the alleged violation did not occur.

4 ‘‘(2) PENALTY AMOUNT.—In determining the

5 amount of a civil penalty assessed under this section,

6 the Commission shall take into account—

7 ‘‘(A) the nature, circumstances, extent,

8 and gravity of the violation committed;

9 ‘‘(B) with respect to the person found to

10 have committed such violation, the degree of

11 culpability, any history of prior violations, abil12 ity to pay, the effect on ability to continue to

13 do business; and

14 ‘‘(C) such other matters as justice may re15 quire.

16 ‘‘(c) TEMPORARY CLOSURES.—

17 ‘‘(1) IN GENERAL.—The Commission may order

18 the temporary closure of all or part of an Indian

19 gaming operation for a substantial violation of any

20 provision of law referred to in subsection (a).

21 ‘‘(2) HEARING ON ORDER OF TEMPORARY CLO22 SURE.—

23 ‘‘(A) IN GENERAL.—Not later than 30

24 days after the issuance of an order of tem25 porary closure, the Indian tribe or the individ-
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1 ual owner of a gaming operation shall have the

2 right to request a hearing before the Commis3 sion to determine whether such order should be

4 made permanent or dissolved.

5 ‘‘(B) DEADLINES RELATING TO HEAR6 ING.—Not later than 30 days after a request

7 for a hearing is made, the Commission shall

8 conduct such hearing. Not later than 30 days

9 after the termination of the hearing, the Com10 mission shall render a final decision on the clo11 sure.

12 ‘‘SEC. 16. JUDICIAL REVIEW.

13 ‘‘A decision made by the Commission pursuant to sec14 tions 7, 8, 10, 13, 14, and 15 shall constitute final agency

15 decisions for purposes of appeal to the United States Dis16 trict Court for the District of Columbia pursuant to chap17 ter 7 of title 5, United States Code.

18 ‘‘SEC. 17. COMMISSION FUNDING.

19 ‘‘(a) ANNUAL FEES.—

20 ‘‘(1) IN GENERAL.—The Commission shall es21 tablish a schedule of fees to be paid to the Commis22 sion annually by gaming operations for each class II

23 and class III gaming activity that is regulated by

24 this Act.

25 ‘‘(2) LIMITATION ON FEE RATES.—
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1 ‘‘(A) IN GENERAL.—For each gaming op2 eration regulated under this Act, the rate of the

3 fees imposed under the schedule established

4 under paragraph (1) shall not exceed 2 percent

5 of the net revenues of such gaming operation.

6 ‘‘(B) TOTAL AMOUNT OF FEES.—The total

7 amount of all fees imposed during any fiscal

8 year under the schedule established under para9 graph (1) shall equal not more than

10 $25,000,000.

11 ‘‘(3) ANNUAL FEE RATE.—The Commission, by

12 a vote of a majority of the members of the Commis13 sion, shall annually adopt the rate of the fees au14 thorized by this section. Such fees shall be payable

15 to the Commission on a monthly basis.

16 ‘‘(4) ADJUSTMENT OF FEES.—The fees paid by

17 a gaming operation may be adjusted by the Commis18 sion to reduce the amount of the fees by an amount

19 that takes into account that regulatory functions are

20 performed by an Indian tribe, or the Indian tribe

21 and a State, pursuant to regulations promulgated by

22 the Commission.

23 ‘‘(5) CONSEQUENCES OF FAILURE TO PAY

24 FEES.—Failure to pay the fees imposed under the

25 schedule established under paragraph (1) shall, sub-
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1 ject to regulations promulgated by the Commission,

2 be grounds for revocation of the approval of the

3 Commission of any license required under this Act

4 for the operation of gaming activities.

5 ‘‘(6) SURPLUS FUNDS.—To the extent that rev6 enue derived from fees imposed under the schedule

7 established under paragraph (1) exceed the limita8 tion in paragraph (2)(B) or are not expended or

9 committed at the close of any fiscal year, such sur10 plus funds shall be credited to each gaming activity

11 that is the subject of the fees on a pro rata basis

12 against such fees imposed for the succeeding year.

13 ‘‘(b) REIMBURSEMENT OF COSTS.—The Commission

14 is authorized to assess any applicant, except the governing

15 body of an Indian tribe, for any license required pursuant

16 to this Act. Such assessment shall be an amount equal

17 to the actual costs of conducting all reviews and investiga18 tions necessary for the Commission to determine whether

19 a license should be granted or denied to the applicant.

20 ‘‘(c) ANNUAL BUDGET.—

21 ‘‘(1) IN GENERAL.—For the first full fiscal year

22 beginning after the date of enactment of the Indian

23 Gaming Regulatory Act Amendments Act of 1995,

24 and each fiscal year thereafter, the Commission shall
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1 adopt an annual budget for the expenses and oper2 ation of the Commission.

3 ‘‘(2) REQUEST FOR APPROPRIATIONS.—The

4 budget of the Commission may include a request for

5 appropriations authorized under section 18.

6 ‘‘(3) SUBMISSION TO CONGRESS.—Notwith7 standing any other provision of law, a request for

8 appropriations made pursuant to paragraph (2) shall

9 be submitted by the Commission directly to the Con10 gress beginning with the request for the first full fis11 cal year beginning after the date of enactment of

12 this Act, and shall include the proposed annual

13 budget of the Commission and the estimated reve14 nues to be derived from fees.

15 ‘‘SEC. 18. AUTHORIZATION OF APPROPRIATIONS.

16 ‘‘Subject to section 17, there are authorized to be ap17 propriated $5,000,000 to provide for the operation of the

18 Commission for each of fiscal years 1997, 1998, and 1999,

19 to remain available until expended.

20 ‘‘SEC. 19. MISCELLANEOUS.

21 ‘‘(a) GAMING PROSCRIBED ON LANDS ACQUIRED IN

22 TRUST.—

23 ‘‘(1) IN GENERAL.—Except as provided in para24 graph (2), gaming regulated by this Act shall not be

25 conducted on lands acquired by the Secretary in
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1 trust for the benefit of an Indian tribe after the date

2 of enactment of this Act, unless—

3 ‘‘(A) such lands are located within or con4 tiguous to the boundaries of the reservation of

5 the Indian tribe on the date of enactment of

6 this Act;

7 ‘‘(B) the Indian tribe has no reservation on

8 the date of enactment of this Act and such

9 lands are located in the State of Oklahoma

10 and—

11 ‘‘(i) are within the boundaries of the

12 former reservation of the Indian tribe, as

13 defined by the Secretary; or

14 ‘‘(ii) are contiguous to other land held

15 in trust or restricted status by the United

16 States for the Indian tribe in the State of

17 Oklahoma; or

18 ‘‘(C) such lands are located in a State

19 other than the State of Oklahoma and are with20 in the last recognized reservation of the Indian

21 tribe within the State within which the Indian

22 tribe is presently located.

23 ‘‘(2) EXEMPTION FOR CERTAIN TRUST

24 LANDS.—Paragraph (1) does not apply in any case

25 in which—
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1 ‘‘(A) the Secretary, after consultation with

2 the Indian tribe and a review of the rec3 ommendations, if any, of the Governor of the

4 State in which such lands are located, and any

5 other State and local officials, including officials

6 of other nearby Indian tribes, determines that

7 a gaming establishment on newly acquired

8 lands—

9 ‘‘(i) would be in the best interest of

10 the Indian tribe and the members of the

11 Indian tribe; and

12 ‘‘(ii) would not be detrimental to the

13 surrounding community;

14 ‘‘(B) lands are taken into trust as part of

15 a settlement of a land claim;

16 ‘‘(C) the initial reservation of an Indian

17 tribe is acknowledged by the Secretary under

18 the Federal acknowledgment process or by an

19 Act of Congress; or

20 ‘‘(D) lands are restored for an Indian tribe

21 that is restored to Federal recognition.

22 ‘‘(3) EXEMPTION.—Paragraph (1) shall not

23 apply to—

24 ‘‘(A) any lands involved in the trust peti25 tion of the St. Croix Chippewa Indians of Wis-
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1 consin that is the subject of the action filed in

2 the United States District Court for the Dis3 trict of Columbia entitled St. Croix Chippewa

4 Indians of Wisconsin v. United States, Civ. No.

5 86–2278; or

6 ‘‘(B) the interests of the Miccosukee Tribe

7 of Indians of Florida in approximately 25 con8 tiguous acres of land, more or less, in Dade

9 County, Florida, located within 1 mile of the

10 intersection of State road numbered 27 (also

11 known as Krome Avenue) and the Tamiami

12 Trail.

13 ‘‘(4) AUTHORITY OF THE SECRETARY.—Noth14 ing in this section may affect or diminish the au15 thority and responsibility of the Secretary to take

16 land into trust.

17 ‘‘(b) APPLICATION OF THE INTERNAL REVENUE

18 CODE OF 1986.—

19 ‘‘(1) IN GENERAL.—The provisions of the Inter20 nal Revenue Code of 1986 (including sections 1441,

21 3402(q), 6041, and chapter 35 of such Code) con22 cerning the reporting and withholding of taxes with

23 respect to the winnings from gaming or wagering

24 operations shall apply to Indian gaming operations

25 conducted pursuant to this Act, or under a compact
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1 entered into under section 12 that is in effect, in the

2 same manner as such provisions apply to State gam3 ing and wagering operations. Any exemptions to

4 States with respect to taxation of such gaming or

5 wagering operations shall be allowed to Indian

6 tribes.

7 ‘‘(2) EXEMPTION.—The provisions of section

8 6050I of the Internal Revenue Code of 1986 shall

9 apply to an Indian gaming establishment that is not

10 designated by the Secretary of the Treasury as a fi11 nancial institution pursuant to chapter 53 of title

12 31, United States Code.

13 ‘‘(3) STATUTORY CONSTRUCTION.—This sub14 section shall apply notwithstanding any other provi15 sion of law enacted before the date of enactment of

16 this Act unless such other provision of law specifi17 cally cites this subsection.

18 ‘‘(c) ACCESS TO INFORMATION BY STATE AND TRIB19 AL GOVERNMENTS.—Subject to section 7(d), upon the re20 quest of a State or the governing body of an Indian tribe,

21 the Commission shall make available any law enforcement

22 information which it has obtained pursuant to such sec23 tion, unless otherwise prohibited by law, in order to enable

24 the State or the Indian tribe to carry out its responsibil-
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1 ities under this Act or any compact approved by the Sec2 retary.’’;

3 (3) by striking section 20;

4 (4) by redesignating sections 21 through 24 as

5 sections 20 through 23, respectively; and

6 (5) by adding at the end the following new sec7 tion:

8 ‘‘SEC. 24. DEFINITION OF FINANCIAL INSTITUTIONS.

9 ‘‘Section 5312(a)(2) of title 31, United States Code,

10 is amended—

11 ‘‘(1) by redesignating subparagraphs (X) and

12 (Y) as subparagraphs (Y) and (Z), respectively; and

13 ‘‘(2) by inserting after subparagraph (W) the

14 following new subparagraph:

15 ‘‘(X) an Indian gaming establishment;’’.

16 SEC. 3. CONFORMING AMENDMENTS.

17 (a) TITLE 10.—Section 2323a(e)(1) of title 10, Unit18 ed States Code, is amended by striking ‘‘section 4(4) of

19 the Indian Gaming Regulatory Act (102 Stat. 2468; 25

20 U.S.C. 2703(4))’’ and inserting ‘‘section 4(16) of the In21 dian Gaming Regulatory Act’’.

22 (b) TITLE 18.—Title 18, United States Code, is

23 amended—

24 (1) in subsections (c) and (d) of section 1166,

25 by striking ‘‘section 11(d)(8) of the Indian Gaming
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1 Regulatory Act’’ each place it appears and inserting

2 ‘‘section 12(a)(2)(B) of the Indian Gaming Regu3 latory Act’’;

4 (2) in section 1167—

5 (A) in subsection (a), by striking ‘‘Na6 tional Indian Gaming Commission’’ and insert7 ing ‘‘Federal Indian Gaming Regulatory Com8 mission established under section 5 of the In9 dian Gaming Regulatory Act’’; and

10 (B) in subsection (b), by striking ‘‘Na11 tional Indian Gaming Commission’’ and insert12 ing ‘‘Federal Indian Gaming Regulatory Com13 mission’’; and

14 (3) in section 1168—

15 (A) in subsection (a), by striking ‘‘Na16 tional Indian Gaming Commission’’ and insert17 ing ‘‘Federal Indian Gaming Regulatory Com18 mission established under section 5 of the In19 dian Gaming Regulatory Act’’; and

20 (B) in subsection (b), by striking ‘‘Na21 tional Indian Gaming Commission’’ and insert22 ing ‘‘Federal Indian Gaming Regulatory Com23 mission’’.

24 (c) INTERNAL REVENUE CODE OF 1986.—Section

25 168(j)(4)(A)(iv) of the Internal Revenue Code of 1986 is
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1 amended by striking ‘‘Indian Regulatory Act’’ and insert2 ing ‘‘Indian Gaming Regulatory Act’’.

3 (d) TITLE 28.—Title 28, United States Code, is

4 amended—

5 (1) in section 3701(2)—

6 (A) by striking ‘‘section 4(5) of the Indian

7 Gaming Regulatory Act (25 U.S.C. 2703(5))’’

8 and inserting ‘‘section 4(17) of the Indian

9 Gaming Regulatory Act’’; and

10 (B) by striking ‘‘section 4(4) of such Act

11 (25 U.S.C. 2703(4))’’ and inserting ‘‘section

12 4(16) of such Act’’; and

13 (2) in section 3704(b), by striking ‘‘section 4(4)

14 of the Indian Gaming Regulatory Act’’ and inserting

15 ‘‘section 4(16) of the Indian Gaming Regulatory

16 Act’’.

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