Calendar No. 346

104TH CONGRESS

2D SESSION S. 487

[Report No. 104–241]

A BILL

To amend the Indian Gaming Regulatory Act, and

for other purposes.

MARCH 14 (legislative day, MARCH 13), 1996

Reported with an amendment
II

Calendar No. 346

104TH CONGRESS

2D SESSION S. 487

[Report No. 104–241]

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, Mr. INOUYE, and Mr. CAMPBELL) introduced the

following bill; which was read twice and referred to the Committee on Indian Affairs

MARCH 14 (legislative day, MARCH 13), 1996

Reported by Mr. MCCAIN, with an amendment

[Strike out all after the enacting clause and insert the part printed in italic]

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’’.
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1 SEC. 2. AMENDMENTS TO THE INDIAN GAMING REGU2 LATORY ACT.

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

4 et seq.) is amended—

5 (1) by striking the first section and inserting

6 the following new section:

7 ‘‘SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

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

9 ‘Indian Gaming Regulatory Act’.

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

11 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.’’;

12 (2) by striking sections 2 through 19 and in13 serting the following new sections:
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1 ‘‘SEC. 2. CONGRESSIONAL FINDINGS.

2 ‘‘The Congress finds that—

3 ‘‘(1) Indian tribes are—

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

5 activities on Indian lands as a means of gener6 ating tribal governmental revenue; and

7 ‘‘(B) licensing such activities;

8 ‘‘(2) clear Federal standards and regulations

9 for the conduct of gaming on Indian lands will assist

10 tribal governments in assuring the integrity of gam11 ing activities conducted on Indian lands;

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

13 to promote tribal economic development, tribal self14 sufficiency, and strong tribal government;

15 ‘‘(4) while Indian tribes have the right to regu16 late the operation of gaming activities on Indian

17 lands if such gaming activities are—

18 ‘‘(A) not specifically prohibited by Federal

19 law; and

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

21 matter of public policy permits such gaming ac22 tivities,

23 Congress has the authority to regulate the privilege

24 of doing business with Indian tribes in Indian coun25 try (as defined in section 1151 of title 18, United

26 States Code);
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1 ‘‘(5) systems for the regulation of gaming ac2 tivities on Indian lands should meet or exceed feder3 ally established minimum regulatory requirements;

4 ‘‘(6) the operation of gaming activities on In5 dian lands has had a significant impact on com6 merce with foreign nations, among the several States

7 and with the Indian tribes; and

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

9 the powers to regulate Commerce with foreign Na10 tions, and among the several States, and with the

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

12 of those powers.

13 ‘‘SEC. 3. PURPOSES.

14 ‘‘The purposes of this Act are—

15 ‘‘(1) to ensure the right of Indian tribes to con16 duct gaming activities on Indian lands in a manner

17 consistent with the decision of the Supreme Court in

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

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

20 2d 244 (1987)), involving the Cabazon and Morongo

21 Bands of Mission Indians;

22 ‘‘(2) to provide a statutory basis for the con23 duct of gaming activities on Indian lands as a means

24 of promoting tribal economic development, self-suffi25 ciency, and strong Indian tribal governments;
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1 ‘‘(3) to provide a statutory basis for the regula2 tion of gaming activities on Indian lands by an In3 dian tribe adequate to shield such activities from or4 ganized crime and other corrupting influences, to en5 sure that an Indian tribal government is the primary

6 beneficiary of the operation of gaming activities, and

7 to ensure that gaming is conducted fairly and hon8 estly by both the operator and players; and

9 ‘‘(4) to declare that the establishment of inde10 pendent Federal regulatory authority for the conduct

11 of gaming activities on Indian lands and the estab12 lishment of Federal minimum regulatory require13 ments for the conduct of gaming activities on Indian

14 lands are necessary to protect such gaming.

15 ‘‘SEC. 4. DEFINITIONS.

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

17 shall apply:

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

19 any person who applies for a license pursuant to this

20 Act, including persons applying for a renewal of a li21 cense.

22 ‘‘(2) ADVISORY COMMITTEE.—The term ‘Advi23 sory Committee’ means the Advisory Committee on

24 Minimum Regulatory Requirements and Licensing

25 Standards established under section 9(a).
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1 ‘‘(3) ATTORNEY GENERAL.—The term ‘Attor2 ney General’ means the Attorney General of the

3 United States.

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

5 means the Chairperson of the Federal Indian Gam6 ing Regulatory Commission established under sec7 tion 5.

8 ‘‘(5) CLASS I GAMING.—The term ‘class I gam9 ing’ means social games played solely for prizes of

10 minimal value or traditional forms of Indian gaming

11 engaged in by individuals as a part of, or in connec12 tion with, tribal ceremonies or celebrations.

13 ‘‘(6) CLASS II GAMING.—

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

15 gaming’ means—

16 ‘‘(i) the game of chance commonly

17 known as bingo or lotto including, if played

18 in the same location, pull-tabs, punch

19 boards, tip jars, instant bingo, and other

20 games similar to bingo (whether or not

21 electronic, computer, or other technologic

22 aids are used in connection therewith)—

23 ‘‘(I) which is played for prizes,

24 including monetary prizes, with cards
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1 bearing numbers or other designa2 tions;

3 ‘‘(II) in which the holder of the

4 card covers such numbers or designa5 tions when objects, similarly num6 bered or designated, are drawn or

7 electronically determined; and

8 ‘‘(III) in which the game is won

9 by the first person covering a pre10 viously designated arrangement of

11 numbers or designations on such

12 cards; and

13 ‘‘(ii) card games that—

14 ‘‘(I) are explicitly authorized by

15 the laws of a State; or

16 ‘‘(II) are not explicitly prohibited

17 by the laws of a State and are played

18 at any location in the State, but only

19 if such card games are played in con20 formity with any such laws (including

21 regulations) of the State regarding

22 hours or periods of operation of such

23 card games or limitations on wagers

24 or pot sizes in such card games.
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1 ‘‘(B) EXCLUSIONS.—The term ‘class II

2 gaming’ does not include—

3 ‘‘(i) any banking card games, includ4 ing baccarat, chemin de fer, or blackjack

5 (21); or

6 ‘‘(ii) gambling devices, as defined in

7 paragraph (11), except for any class II

8 game that is played under subparagraph

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

10 approved by the Commission.

11 ‘‘(C) TREATMENT OF CERTAIN GAMES.—

12 Notwithstanding any other provision of this

13 paragraph, the term ‘class II gaming’ includes

14 those card games played in the State of Michi15 gan, the State of North Dakota, the State of

16 South Dakota, or the State of Washington,

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

18 operated in such State by an Indian tribe, but

19 only to the extent of the nature and scope of

20 the card games that were actually operated by

21 an Indian tribe in such State on or before such

22 date, as determined by the Commission (as de23 fined in paragraph (8)).
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1 ‘‘(7) CLASS III GAMING.—The term ‘class III

2 gaming’ means all forms of gaming that are not

3 class I gaming or class II gaming.

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

5 means the Federal Indian Gaming Regulatory Com6 mission established under section 5.

7 ‘‘(9) COMPACT.—The term ‘compact’ means an

8 agreement relating to the operation of class III gam9 ing on Indian lands entered into by an Indian tribe

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

11 an agreement relating to the operation of class III

12 gaming that is negotiated by an Indian tribe and the

13 Secretary, and approved by the Secretary.

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

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

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

17 gaming, means a device, such as a computer, tele18 phone, cable, television, satellite, or bingo blower,

19 that, when used—

20 ‘‘(A) is not a game of chance or a gam21 bling device;

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

23 of a game; and

24 ‘‘(C) is operated according to applicable

25 Federal communications law.
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1 ‘‘(11) ELECTRONIC OR ELECTROMECHANICAL

2 FACSIMILE.—The term ‘electronic or

3 electromechanical facsimile’ means any gambling de4 vice, as defined in paragraph (12).

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

6 device’ means—

7 ‘‘(A) any gambling device, as defined in

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

9 (commonly referred to as the ‘Gambling Devices

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

11 1194; 15 U.S.C. 1171(a)), including any elec12 tronic or electromechanical facsimile; and

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

14 to class II gaming that is approved by the Com15 mission.

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

17 ‘gaming-related contract’ means any agreement for

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

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

20 agent of any Indian tribe procures gaming ma21 terials, supplies, equipment, or services that are

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

23 gaming activity, or
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1 ‘‘(B) financing contracts or agreements for

2 any facility in which a gaming activity is to be

3 conducted.

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

5 term ‘gaming-related contractor’ means any person

6 who enters into a gaming-related contract with an

7 Indian tribe or an agent of an Indian tribe, includ8 ing any person with a financial interest in such con9 tract.

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

11 ‘gaming service industry’ means any form of enter12 prise that provides goods or services that are used

13 in conjunction with any class II or class III gaming

14 activity, in any case in which—

15 ‘‘(A) the proposed agreement between the

16 enterprise and a class II or class III gaming op17 eration, or the aggregate of such agreements is

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

19 year; or

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

21 such enterprise with any gaming operation in

22 the 1-year period preceding the effective date of

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

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

25 means—
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1 ‘‘(A) all lands within the limits of any In2 dian reservation; and

3 ‘‘(B) any lands—

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

5 by the United States for the benefit of any

6 Indian tribe; or

7 ‘‘(ii) the title to which is—

8 ‘‘(I) held by an Indian tribe sub9 ject to a restriction by the United

10 States against alienation;

11 ‘‘(II) held by the United States

12 for the benefit of an individual Indian;

13 or

14 ‘‘(III) held by an individual sub15 ject to restriction by the United

16 States against alienation; and

17 ‘‘(iii) over which an Indian tribe exer18 cises governmental power.

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

20 means any Indian tribe, band, nation, or other orga21 nized group or community of Indians that—

22 ‘‘(A) is recognized as eligible by the Sec23 retary for the special programs and services

24 provided by the United States to Indians be25 cause of their status as Indians; and
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1 ‘‘(B) is recognized as possessing powers of

2 self-government.

3 ‘‘(18) KEY EMPLOYEE.—The term ‘key em4 ployee’ means any individual employed in a gaming

5 operation licensed pursuant to this Act in a super6 visory capacity or empowered to make any discre7 tionary decision with regard to the gaming oper8 ation, including any pit boss, shift boss, credit exec9 utive, cashier supervisor, gaming facility manager or

10 assistant manager, or manager or supervisor of se11 curity employees.

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

13 ‘management contract’ means any contract or collat14 eral agreement between an Indian tribe and a con15 tractor, if such contract or agreement provides for

16 the management of all or part of a gaming oper17 ation.

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

19 ‘management contractor’ means any person entering

20 into a management contract with an Indian tribe or

21 an agent of the Indian tribe for the management of

22 a gaming operation, including any person with a fi23 nancial interest in such contract.

24 ‘‘(21) MATERIAL CONTROL.—The term ‘mate25 rial control’ means the exercise of authority or su-
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1 pervision or the power to make or cause to be made

2 any discretionary decision with regard to matters

3 which have a substantial effect on the financial or

4 management aspects of a gaming operation.

5 ‘‘(22) NET REVENUES.—The term ‘net reve6 nues’ means the gross revenues of an Indian gaming

7 activity reduced by the sum of—

8 ‘‘(A) any amounts paid out or paid for as

9 prizes; and

10 ‘‘(B) the total operating expenses associ11 ated with the gaming activity, excluding man12 agement fees.

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

14 individual, firm, corporation, association, partner15 ship, trust, consortium, joint venture, entity, or

16 gaming operation.

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

18 means the Secretary of the Interior.

19 ‘‘SEC. 5. ESTABLISHMENT OF THE FEDERAL INDIAN GAM20 ING REGULATORY COMMISSION.

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

22 independent agency of the United States, a Commission

23 to be known as the Federal Indian Gaming Regulatory

24 Commission. Such Commission shall be an independent es-
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1 tablishment, as defined in section 104 of title 5, United

2 States Code.

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

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

5 composed of 3 full-time members, who shall be ap6 pointed by the President, by and with the advice and

7 consent of the Senate.

8 ‘‘(2) CITIZENSHIP OF MEMBERS.—Each mem9 ber of the Commission shall be a citizen of the Unit10 ed States.

11 ‘‘(3) REQUIREMENTS FOR MEMBERS.—No

12 member of the Commission may—

13 ‘‘(A) pursue any other business or occupa14 tion or hold any other office;

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

16 through distribution of gaming revenues as a

17 member of an Indian tribe, have any direct pe18 cuniary interest in gaming activities;

19 ‘‘(C) other than through distribution of

20 gaming revenues as a member of an Indian

21 tribe, have any pecuniary interest in any busi22 ness or organization that holds a gaming license

23 under this Act or that does business with any

24 person or organization licensed under this Act;
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1 ‘‘(D) have been convicted of a felony or

2 gaming offense; or

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

4 management responsibility for, any gaming-re5 lated contract or any other contract approved

6 pursuant to this Act.

7 ‘‘(4) POLITICAL AFFILIATION.—

8 ‘‘(A) IN GENERAL.—Not more than 2

9 members of the Commission shall be members

10 of the same political party. In making appoint11 ments to the Commission, the President shall

12 appoint members of different political parties,

13 to the extent practicable.

14 ‘‘(B) TRIBAL MEMBERSHIP.—At least 2

15 members of the Commission shall each be a

16 member of a federally recognized Indian tribe.

17 No 2 members appointed under this subpara18 graph shall be members of the same Indian

19 tribe.

20 ‘‘(5) ADDITIONAL REQUIREMENTS.—The Com21 mission shall be composed of the most qualified indi22 viduals available, subject to the following conditions:

23 ‘‘(A) CERTIFIED PUBLIC ACCOUNTANT

24 REPRESENTATION.—One member of the Com25 mission shall be a certified public accountant
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1 with not less than 5 years of progressively re2 sponsible experience in accounting and auditing,

3 and a comprehensive knowledge of the prin4 ciples and practices of corporate finance.

5 ‘‘(B) LAW ENFORCEMENT REPRESENTA6 TION.—One member of the Commission shall be

7 selected with special reference to training and

8 experience in the fields of investigation or law

9 enforcement.

10 ‘‘(6) BACKGROUND INVESTIGATIONS.—The At11 torney General shall conduct a background inves12 tigation concerning any individual under consider13 ation for appointment to the Commission, with par14 ticular regard to the financial stability, integrity, re15 sponsibility, and reputation for good character, hon16 esty, and integrity of the nominee.

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

18 Chairperson from among the members appointed to the

19 Commission.

20 ‘‘(d) VICE CHAIRPERSON.—The Commission shall se21 lect, by majority vote, one of the members of the Commis22 sion to serve as Vice Chairperson. The Vice Chairperson

23 shall—

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

25 the absence of the Chairperson; and
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1 ‘‘(2) exercise such other powers as may be dele2 gated by the Chairperson.

3 ‘‘(e) TERMS OF OFFICE.—

4 ‘‘(1) IN GENERAL.—Each member of the Com5 mission shall hold office for a term of 5 years.

6 ‘‘(2) INITIAL APPOINTMENTS.—Initial appoint7 ments to the Commission shall be made for the fol8 lowing terms:

9 ‘‘(A) The Chairperson shall be appointed

10 for a term of 5 years.

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

12 term of 4 years.

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

14 term of 3 years.

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

16 more than 2 terms of 5 years each.

17 ‘‘(f) VACANCIES.—

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

19 by the President to serve as Chairperson and each

20 member of the Commission shall, unless removed for

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

22 which such individual is appointed until the expira23 tion of the term of such individual or until a succes24 sor is duly appointed and qualified.
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1 ‘‘(2) REMOVAL FROM OFFICE.—The Chair2 person or any member of the Commission may only

3 be removed from office before the expiration of the

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

5 malfeasance in office, or for other good cause shown.

6 ‘‘(3) TERM TO FILL VACANCIES.—The term of

7 any member appointed to fill a vacancy on the Com8 mission shall be for the unexpired term of the mem9 ber.

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

11 shall constitute a quorum.

12 ‘‘(h) MEETINGS.—

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

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

15 members of the Commission.

16 ‘‘(2) MAJORITY OF MEMBERS DETERMINE AC17 TION.—A majority of the members of the Commis18 sion shall determine any action of the Commission.

19 ‘‘(i) COMPENSATION.—

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

21 paid at a rate equal to that of level IV of the Execu22 tive Schedule under section 5316 of title 5, United

23 States Code.

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

25 the Commission shall be paid at a rate equal to that
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1 of level V of the Executive Schedule under section

2 5316 of title 5, United States Code.

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

4 shall be reimbursed in accordance with title 5, Unit5 ed States Code, for travel, subsistence, and other

6 necessary expenses incurred by them in the perform7 ance of their duties.

8 ‘‘(j) ADMINISTRATIVE SUPPORT SERVICES.—The Ad9 ministrator of General Services shall provide to the Com10 mission on a reimbursable basis such administrative sup11 port services as the Commission may request.

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

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

14 shall serve as the chief executive officer of the Commis15 sion.

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

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

18 the Chairperson—

19 ‘‘(A) shall employ and supervise such per20 sonnel as the Chairperson considers necessary

21 to carry out the functions of the Commission,

22 and assign work among such personnel;

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

24 the Commission who shall be paid at the annual

25 rate of basic pay payable for ES–6 of the Sen-
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1 ior Executive Service Schedule under section

2 5382 of title 5, United States Code;

3 ‘‘(C) shall appoint and supervise other

4 staff of the Commission without regard to the

5 provisions of title 5, United States Code, gov6 erning appointments in the competitive service;

7 ‘‘(D) may procure temporary and intermit8 tent services under section 3109(b) of title 5,

9 United States Code, but at rates for individuals

10 not to exceed the daily equivalent of the maxi11 mum annual rate of basic pay payable for ES–

12 6 of the Senior Executive Service Schedule;

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

14 agency to detail any personnel of such agency

15 to the Commission to assist the Commission in

16 carrying out the duties of the Commission

17 under this Act, unless otherwise prohibited by

18 law;

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

20 and funds collected pursuant to section 17; and

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

22 other professional, technical, and operational

23 personnel and consultants as may be necessary

24 to the performance of the Commission’s respon25 sibilities under this Act.
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1 ‘‘(2) COMPENSATION OF STAFF.—The staff re2 ferred to in paragraph (1)(C) shall be paid without

3 regard to the provisions of chapter 51 and sub4 chapters III and VIII of chapter 53 of title 5, Unit5 ed States Code, relating to classification and Gen6 eral Schedule and Senior Executive Service Schedule

7 pay rates, except that no individual so appointed

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

9 pay payable for ES–5 of the Senior Executive Serv10 ice Schedule under section 5382 of title 5, United

11 States Code.

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

13 the functions under this section, the Chairperson shall be

14 governed by the general policies of the Commission and

15 by such regulatory decisions, findings, and determinations

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

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

18 ‘‘(a) GENERAL POWERS.—

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

20 the power to—

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

22 Commission;

23 ‘‘(B) promulgate regulations to carry out

24 this Act;
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1 ‘‘(C) establish a rate of fees and assess2 ments, as provided in section 17;

3 ‘‘(D) conduct investigations, including

4 background investigations;

5 ‘‘(E) issue a temporary order closing the

6 operation of gaming activities;

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

8 temporary order closing the operation of gam9 ing activities, as provided in section 15;

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

11 revoke, or suspend any license issued under any

12 licensing authority conferred upon the Commis13 sion pursuant to this Act or fine any person li14 censed pursuant to this Act for violation of any

15 of the conditions of licensure under this Act;

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

17 which class II or class III gaming is conducted

18 on Indian lands;

19 ‘‘(I) demand access to and inspect, exam20 ine, photocopy, and audit all papers, books, and

21 records of class II and class III gaming activi22 ties conducted on Indian lands and any other

23 matters necessary to carry out the duties of the

24 Commission under this Act;
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1 ‘‘(J) use the United States mail in the

2 same manner and under the same conditions as

3 any department or agency of the United States;

4 ‘‘(K) procure supplies, services, and prop5 erty by contract in accordance with applicable

6 Federal laws;

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

8 State, tribal, and private entities for activities

9 necessary to the discharge of the duties of the

10 Commission;

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

12 notices of the Commission in a manner provided

13 for by the Commission or in a manner provided

14 for the service of process and notice in civil ac15 tions in accordance with the applicable rules of

16 a tribal, State, or Federal court;

17 ‘‘(N) propound written interrogatories and

18 appoint hearing examiners, to whom may be

19 delegated the power and authority to administer

20 oaths, issue subpoenas, propound written inter21 rogatories, and require testimony under oath;

22 ‘‘(O) conduct all administrative hearings

23 pertaining to civil violations of this Act (includ24 ing any civil violation of a regulation promul25 gated under this Act);
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1 ‘‘(P) collect all fees and assessments au2 thorized by this Act and the regulations pro3 mulgated pursuant to this Act;

4 ‘‘(Q) assess penalties for violations of the

5 provisions of this Act and the regulations pro6 mulgated pursuant to this Act;

7 ‘‘(R) provide training and technical assist8 ance to Indian tribes with respect to all aspects

9 of the conduct and regulation of gaming activi10 ties;

11 ‘‘(S) monitor and, as specifically author12 ized by this Act, regulate class II and class III

13 gaming;

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

15 gaming-related contracts; and

16 ‘‘(U) in addition to the authorities other17 wise specified in this Act, delegate, by published

18 order or rule, any of the functions of the Com19 mission (including functions with respect to

20 hearing, determining, ordering, certifying, re21 porting, or otherwise acting on the part of the

22 Commission concerning any work, business, or

23 matter) to a division of the Commission, an in24 dividual member of the Commission, an admin-
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1 istrative law judge, or an employee of the Com2 mission.

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

4 this section may be construed to authorize the dele5 gation of the function of rulemaking, as described in

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

7 Code, with respect to general rules (as distinguished

8 from rules of particular applicability), or the promul9 gation of any other rule.

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

11 ‘‘(1) IN GENERAL.—With respect to the delega12 tion of any of the functions of the Commission, the

13 Commission shall retain a discretionary right to re14 view the action of any division of the Commission,

15 individual member of the Commission, administra16 tive law judge, or employee of the Commission, upon

17 the initiative of the Commission.

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

19 one member of the Commission shall be sufficient to

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

21 the Commission for review, and the Commission

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

23 not later than the last day of the applicable period

24 specified in regulations promulgated by the Commis25 sion.
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•S 487 RS

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

2 Commission declines to exercise the right to such re3 view or fails to exercise such right within the appli4 cable period specified in regulations promulgated by

5 the Commission, the action of any such division of

6 the Commission, individual member of the Commis7 sion, administrative law judge, or employee, shall,

8 for all purposes, including any appeal or review of

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

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

11 procedures described in section 9(d), after receiving rec12 ommendations from the Advisory Committee, the Commis13 sion shall establish minimum Federal standards—

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

15 persons, and licensing of gaming operations associ16 ated with the conduct or regulation of class II and

17 class III gaming on Indian lands by tribal govern18 ments; and

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

20 gaming activities on Indian lands, including—

21 ‘‘(A) surveillance and security personnel

22 and systems capable of monitoring all gaming

23 activities, including the conduct of games, cash24 iers’ cages, change booths, count rooms, move25 ments of cash and chips, entrances and exits to
28

•S 487 RS

1 gaming facilities, and other critical areas of any

2 gaming facility;

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

4 integrity of the rules for the play of games and

5 controls related to such rules;

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

7 ‘‘(D) controls over gambling devices and

8 equipment; and

9 ‘‘(E) accounting and auditing.

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

11 ‘‘(1) IN GENERAL.—The Commission may se12 cure from any department or agency of the United

13 States information necessary to enable the Commis14 sion to carry out this Act. Unless otherwise prohib15 ited by law, upon request of the Chairperson, the

16 head of such department or agency shall furnish

17 such information to the Commission.

18 ‘‘(2) INFORMATION TRANSFER.—The Commis19 sion may secure from any law enforcement or gam20 ing regulatory agency of any State, Indian tribe, or

21 foreign nation information necessary to enable the

22 Commission to carry out this Act. Unless otherwise

23 prohibited by law, upon request of the Chairperson,

24 the head of any State or tribal law enforcement
29

•S 487 RS

1 agency shall furnish such information to the Com2 mission.

3 ‘‘(3) PRIVILEGED INFORMATION.—Notwith4 standing sections 552 and 552a of title 5, United

5 States Code, the Commission shall protect from dis6 closure information provided by Federal, State, trib7 al, or international law enforcement or gaming regu8 latory agencies.

9 ‘‘(4) LAW ENFORCEMENT AGENCY.—For pur10 poses of this subsection, the Commission shall be

11 considered a law enforcement agency.

12 ‘‘(e) INVESTIGATIONS AND ACTIONS.—

13 ‘‘(1) IN GENERAL.—

14 ‘‘(A) POSSIBLE VIOLATIONS.—The Com15 mission may, at the discretion of the Commis16 sion, and as specifically authorized by this Act,

17 conduct such investigations as the Commission

18 considers necessary to determine whether any

19 person has violated, is violating, or is conspiring

20 to violate any provision of this Act (including

21 any rule or regulation promulgated under this

22 Act). The Commission may require or permit

23 any person to file with the Commission a state24 ment in writing, under oath, or otherwise as the

25 Commission may determine, concerning all of
30

•S 487 RS

1 the relevant facts and circumstances regarding

2 the matter under investigation by the Commis3 sion pursuant to this subsection.

4 ‘‘(B) ADMINISTRATIVE INVESTIGATIONS.—

5 The Commission is authorized, at the discretion

6 of the Commission, and as specifically author7 ized by this Act, to investigate such facts, con8 ditions, practices, or matters as the Commission

9 considers necessary or proper to aid in—

10 ‘‘(i) the enforcement of any provision

11 of this Act;

12 ‘‘(ii) prescribing rules and regulations

13 under this Act; or

14 ‘‘(iii) securing information to serve as

15 a basis for recommending further legisla16 tion concerning the matters to which this

17 Act relates.

18 ‘‘(2) ADMINISTRATIVE AUTHORITIES.—

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

20 any investigation or any other proceeding con21 ducted under this Act, any member of the Com22 mission or any officer designated by the Com23 mission is empowered to administer oaths and

24 affirmations, subpoena witnesses, compel their

25 attendance, take evidence, and require the pro-
31

•S 487 RS

1 duction of any books, papers, correspondence,

2 memoranda, or other records that the Commis3 sion considers relevant or material to the in4 quiry. The attendance of such witnesses and the

5 production of any such records may be required

6 from any place in the United States at any des7 ignated place of hearing.

8 ‘‘(B) REQUIRING APPEARANCES OR TESTI9 MONY.—In case of contumacy by, or refusal to

10 obey any subpoena issued to, any person, the

11 Commission may invoke the jurisdiction of any

12 court of the United States within the jurisdic13 tion of which an investigation or proceeding is

14 carried on, or where such person resides or car15 ries on business, in requiring the attendance

16 and testimony of witnesses and the production

17 of books, papers, correspondence, memoranda,

18 and other records.

19 ‘‘(C) COURT ORDERS.—Any such court

20 may issue an order requiring such person to ap21 pear before the Commission or member of the

22 Commission or officer designated by the Com23 mission, there to produce records, if so ordered,

24 or to give testimony touching the matter under

25 investigation or in question, and any failure to
32

•S 487 RS

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 RS

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 RS

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 RS

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 RS

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 RS

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 RS

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 RS

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 RS

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 RS

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 RS

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 RS

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 RS

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 RS

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 RS

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 RS

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 RS

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 RS

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 RS

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 RS

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 RS

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 RS

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

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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-
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•S 487 RS

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
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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
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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 RS

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
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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 RS

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
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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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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
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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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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;
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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
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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
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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.
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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—
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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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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-
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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
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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’’.

17 SECTION 1. SHORT TITLE.

18 This Act may be cited as the ‘‘Indian Gaming Regu19 latory Act Amendments Act of 1995’’.

20 SEC. 2. AMENDMENTS TO THE INDIAN GAMING REGU21 LATORY ACT.

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

23 et seq.) is amended—

24 (1) by striking the first section and inserting the

25 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 ‘In3 dian Gaming Regulatory Act’.

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

5 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. Application of the Internal Revenue Code of 1986.

‘‘Sec. 20. Gaming on lands acquired after October 17, 1988.

‘‘Sec. 21. Dissemination of information.

‘‘Sec. 22. Severability.

‘‘Sec. 23. Criminal penalties.

‘‘Sec. 24. Conforming amendment.’’;

6 (2) by striking sections 2 and 3 and inserting

7 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 ac12 tivities on Indian lands as a means of generat13 ing tribal governmental revenue; and
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1 ‘‘(B) licensing such activities;

2 ‘‘(2) clear Federal standards and regulations for

3 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 Indian tribal governments;

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 of

18 doing business with Indian tribes in Indian country

19 (as defined in section 1151 of title 18, United States

20 Code);

21 ‘‘(5) systems for the regulation of gaming activi22 ties on Indian lands should meet or exceed federally

23 established minimum regulatory requirements;

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

2 with the Indian tribes; and

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

4 powers to regulate Commerce with foreign nations,

5 and among the several States, and with the Indian

6 tribes, and this Act is enacted in the exercise of those

7 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. 2d

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

16 bands of Mission Indians;

17 ‘‘(2) to provide a statutory basis for the conduct

18 of gaming activities on Indian lands as a means of

19 promoting tribal economic development, tribal self20 sufficiency, 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 that is adequate to shield such activities

24 from organized crime and other corrupting influences,

25 to ensure that an Indian tribal government is the pri-
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1 mary beneficiary of the operation of gaming activi2 ties, and to ensure that gaming is conducted fairly

3 and honestly 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 (3) in section 4—

11 (A) by redesignating paragraphs (7) and

12 (8) as paragraphs (6) and (7), respectively;

13 (B) by striking paragraphs (1) through (6)

14 and inserting the following new paragraphs:

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

16 any person who applies for a license pursuant to this

17 Act, including any person who applies for a renewal

18 of a license.

19 ‘‘(2) ADVISORY COMMITTEE.—The term ‘Advi20 sory Committee’ means the Advisory Committee on

21 Minimum Regulatory Requirements and Licensing

22 Standards established under section 9(a).

23 ‘‘(3) ATTORNEY GENERAL.—The term ‘Attorney

24 General’ means the Attorney General of the United

25 States.
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1 ‘‘(4) CHAIRPERSON.—The term ‘Chairperson’

2 means the Chairperson of the Federal Indian Gaming

3 Regulatory Commission established under section 5.

4 ‘‘(5) CLASS I GAMING.—The term ‘class I gam5 ing’ means social games played solely for prizes of

6 minimal value or traditional forms of Indian gaming

7 engaged in by individuals as a part of, or in connec8 tion with, tribal ceremonies or celebrations.’’;

9 (C) by striking paragraphs (9) and (10);

10 and

11 (D) by adding after paragraph (7) (as re12 designated by subparagraph (A) of this para13 graph) the following new paragraphs:

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

15 means the Federal Indian Gaming Regulatory Com16 mission established under section 5.

17 ‘‘(9) COMPACT.—The term ‘compact’ means an

18 agreement relating to the operation of class III gam19 ing on Indian lands that is entered into by an Indian

20 tribe and a State and that is approved by the Sec21 retary.

22 ‘‘(10) GAMING OPERATION.—The term ‘gaming

23 operation’ means an entity that conducts class II or

24 class III gaming on Indian lands.
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1 ‘‘(11) GAMING-RELATED CONTRACT.—The term

2 ‘gaming-related contract’ means any agreement for an

3 amount of more than $50,000 per year—

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

5 agent of any Indian tribe procures gaming mate6 rials, supplies, equipment, or services that are

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

8 gaming activity, or

9 ‘‘(B) financing contracts or agreements for

10 any facility in which a gaming activity is to be

11 conducted.

12 ‘‘(12) GAMING-RELATED CONTRACTOR.—The

13 term ‘gaming-related contractor’ means any person

14 who enters into a gaming-related contract with an In15 dian tribe or an agent of an Indian tribe, including

16 any person with a financial interest in such contract.

17 ‘‘(13) GAMING SERVICE INDUSTRY.—The term

18 ‘gaming service industry’ means any form of enter19 prise that provides goods or services that are used in

20 conjunction with any class II or class III gaming ac21 tivity, in any case in which—

22 ‘‘(A) the proposed agreement between the en23 terprise and a class II or class III gaming oper24 ation, or the aggregate of such agreements is for
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1 an amount of not less than $100,000 per year;

2 or

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

4 such enterprise with any such gaming operation

5 in the 1-year period preceding the effective date

6 of the proposed agreement between the enterprise

7 and a class II or class III gaming operation was

8 not less than $250,000.

9 ‘‘(14) INDIAN LANDS.—The term ‘Indian lands’

10 means—

11 ‘‘(A) all lands within the limits of any In12 dian reservation; and

13 ‘‘(B) any lands—

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

15 by the United States for the benefit of any

16 Indian tribe; or

17 ‘‘(ii)(I) the title to which is—

18 ‘‘(aa) held by an Indian tribe sub19 ject to a restriction by the United

20 States against alienation;

21 ‘‘(bb) held in trust by the United

22 States for the benefit of an individual

23 Indian; or
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1 ‘‘(cc) held by an individual sub2 ject to restriction by the United States

3 against alienation; and

4 ‘‘(II) over which an Indian tribe exer5 cises governmental power.

6 ‘‘(15) INDIAN TRIBE.—The term ‘Indian tribe’

7 means any Indian tribe, band, nation, or other orga8 nized group or community of Indians that—

9 ‘‘(A) is recognized as eligible by the Sec10 retary for the special programs and services pro11 vided by the United States to Indians because of

12 their status as Indians; and

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

14 self-government.

15 ‘‘(16) KEY EMPLOYEE.—The term ‘key employee’

16 means any individual employed in a gaming oper17 ation licensed pursuant to this Act in a supervisory

18 capacity or empowered to make any discretionary de19 cision with regard to the gaming operation, including

20 any pit boss, shift boss, credit executive, cashier su21 pervisor, gaming facility manager or assistant man22 ager, or manager or supervisor of security employees.

23 ‘‘(17) MANAGEMENT CONTRACT.—The term

24 ‘management contract’ means any contract or collat25 eral agreement between an Indian tribe and a con-
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1 tractor, if such contract or agreement provides for the

2 management of all or part of a gaming operation.

3 ‘‘(18) MANAGEMENT CONTRACTOR.—The term

4 ‘management contractor’ means any person entering

5 into a management contract with an Indian tribe or

6 an agent of the Indian tribe for the management of

7 a gaming operation, including any person with a fi8 nancial interest in such contract.

9 ‘‘(19) MATERIAL CONTROL.—The term ‘material

10 control’ means the exercise of authority or supervision

11 or the power to make or cause to be made any discre12 tionary decision with regard to matters which have a

13 substantial effect on the financial or management as14 pects of a gaming operation.

15 ‘‘(20) NET REVENUES.—The term ‘net revenues’

16 means the gross revenues of an Indian gaming activ17 ity reduced by the sum of—

18 ‘‘(A) any amounts paid out or paid for as

19 prizes; and

20 ‘‘(B) the total operating expenses associated

21 with the gaming activity, excluding management

22 fees.

23 ‘‘(21) PERSON.—The term ‘person’ means an in24 dividual, firm, corporation, association, organization,
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1 partnership, trust, consortium, joint venture, or en2 tity.

3 ‘‘(22) SECRETARY.—The term ‘Secretary’ means

4 the Secretary of the Interior.’’;

5 (4) by striking sections 5 through 19 and insert6 ing the following new sections:

7 ‘‘SEC. 5. ESTABLISHMENT OF THE FEDERAL INDIAN GAM8 ING REGULATORY COMMISSION.

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

10 independent agency of the United States, a Commission to

11 be known as the Federal Indian Gaming Regulatory Com12 mission. Such Commission shall be an independent estab13 lishment, as defined in section 104 of title 5, United States

14 Code.

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

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

17 composed of 3 full-time members, who shall be ap18 pointed by the President, by and with the advice and

19 consent of the Senate.

20 ‘‘(2) CITIZENSHIP OF MEMBERS.—Each member

21 of the Commission shall be a citizen of the United

22 States.

23 ‘‘(3) REQUIREMENTS FOR MEMBERS.—No mem24 ber of the Commission may—
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1 ‘‘(A) pursue any other business or occupa2 tion or hold any other office;

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

4 through distribution of gaming revenues as a

5 member of an Indian tribe, have any pecuniary

6 interest in gaming activities;

7 ‘‘(C) other than through distribution of

8 gaming revenues as a member of an Indian

9 tribe, have any pecuniary interest in any busi10 ness or organization that holds a gaming license

11 under this Act or that does business with any

12 person or organization licensed under this Act;

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

14 gaming offense; or

15 ‘‘(E) have any pecuniary interest in, or

16 management responsibility for, any gaming-re17 lated contract or any other contract approved

18 pursuant to this Act.

19 ‘‘(4) POLITICAL AFFILIATION.—Not more than 2

20 members of the Commission shall be members of the

21 same political party. In making appointments to the

22 Commission, the President shall appoint members of

23 different political parties, to the extent practicable.

24 ‘‘(5) ADDITIONAL QUALIFICATIONS.—
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1 ‘‘(A) IN GENERAL.—The Commission shall

2 be composed of the most qualified individuals

3 available. In making appointments to the Com4 mission, the President shall give special reference

5 to the training and experience of individuals in

6 the fields of corporate finance, accounting, audit7 ing, and investigation or law enforcement.

8 ‘‘(B) TRIBAL GOVERNMENT EXPERIENCE.—

9 Not less than 2 members of the Commission shall

10 be individuals with extensive experience or ex11 pertise in tribal government.

12 ‘‘(6) BACKGROUND INVESTIGATIONS.—The Attor13 ney General shall conduct a background investigation

14 concerning any individual under consideration for

15 appointment to the Commission, with particular re16 gard to the financial stability, integrity, responsibil17 ity, and reputation for good character, honesty, and

18 integrity of the nominee.

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

20 Chairperson from among the members appointed to the

21 Commission.

22 ‘‘(d) VICE CHAIRPERSON.—The Commission shall se23 lect, by majority vote, 1 of the members of the Commission

24 to serve as Vice Chairperson. The Vice Chairperson shall—
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1 ‘‘(1) serve as Chairperson of the Commission in

2 the absence of the Chairperson; and

3 ‘‘(2) exercise such other powers as may be dele4 gated by the Chairperson.

5 ‘‘(e) TERMS OF OFFICE.—

6 ‘‘(1) IN GENERAL.—Each member of the Com7 mission shall hold office for a term of 5 years.

8 ‘‘(2) INITIAL APPOINTMENTS.—Initial appoint9 ments to the Commission shall be made for the follow10 ing terms:

11 ‘‘(A) The Chairperson shall be appointed for

12 a term of 5 years.

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

14 term of 4 years.

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

16 term of 3 years.

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

18 more than 2 terms of 5 years each.

19 ‘‘(f) VACANCIES.—

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

21 by the President to serve as Chairperson and each

22 member of the Commission shall, unless removed for

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

24 which such individual is appointed until the expira-
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1 tion of the term of such individual or until a succes2 sor is duly appointed and qualified.

3 ‘‘(2) REMOVAL FROM OFFICE.—The Chairperson

4 or any member of the Commission may only be re5 moved from office before the expiration of the term of

6 office by the President for neglect of duty, malfeasance

7 in office, or for other good cause shown.

8 ‘‘(3) TERM TO FILL VACANCIES.—The term of

9 any member appointed to fill a vacancy on the Com10 mission shall be for the unexpired term of the mem11 ber.

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

13 constitute a quorum.

14 ‘‘(h) MEETINGS.—

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

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

17 members of the Commission.

18 ‘‘(2) MAJORITY OF MEMBERS DETERMINE AC19 TION.—A majority of the members of the Commission

20 shall determine any action of the Commission.

21 ‘‘(i) COMPENSATION.—

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

23 paid at a rate equal to that of level IV of the Execu24 tive Schedule under section 5316 of title 5, United

25 States Code.
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1 ‘‘(2) OTHER MEMBERS.—Each other member of

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

3 of level V of the Executive Schedule under section

4 5316 of title 5, United States Code.

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

6 shall be reimbursed in accordance with title 5, United

7 States Code, for travel, subsistence, and other nec8 essary expenses incurred by them in the performance

9 of their duties.

10 ‘‘(j) ADMINISTRATIVE SUPPORT SERVICES.—The Ad11 ministrator of General Services shall provide to the Com12 mission on a reimbursable basis such administrative sup13 port services as the Commission may request.

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

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

16 shall serve as the chief executive officer of the Commission.

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

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

19 Chairperson—

20 ‘‘(A) shall employ and supervise such per21 sonnel as the Chairperson considers necessary to

22 carry out the functions of the Commission, and

23 assign work among such personnel;

24 ‘‘(B) shall appoint a General Counsel to the

25 Commission who shall be paid at the annual
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1 rate of basic pay payable for ES–6 of the Senior

2 Executive Service Schedule under section 5382 of

3 title 5, United States Code;

4 ‘‘(C) shall appoint and supervise other staff

5 of the Commission without regard to the provi6 sions of title 5, United States Code, governing

7 appointments in the competitive service;

8 ‘‘(D) may procure temporary and intermit9 tent services under section 3109(b) of title 5,

10 United States Code, but at rates for individuals

11 not to exceed the daily equivalent of the maxi12 mum annual rate of basic pay payable for ES–

13 6 of the Senior Executive Service Schedule;

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

15 agency to detail any personnel of such agency to

16 the Commission to assist the Commission in car17 rying out the duties of the Commission under

18 this Act, unless otherwise prohibited by law;

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

20 and funds collected pursuant to section 17; and

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

22 other professional, technical, and operational

23 personnel and consultants as may be necessary

24 for the performance of the Commission’s respon25 sibilities under this Act.
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1 ‘‘(2) COMPENSATION OF STAFF.—The staff re2 ferred to in paragraph (1)(C) shall be paid without

3 regard to the provisions of chapter 51 and sub4 chapters III and VIII of chapter 53 of title 5, United

5 States Code, relating to classification and General

6 Schedule and Senior Executive Service Schedule pay

7 rates, except that no individual so appointed may re8 ceive pay in excess of the annual rate of basic pay

9 payable for ES–5 of the Senior Executive Service

10 Schedule under section 5382 of title 5, United States

11 Code.

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

13 the functions under this section, the Chairperson shall be

14 governed by the general policies of the Commission and by

15 such regulatory decisions, findings, and determinations as

16 the Commission may by law be authorized to make.

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

18 ‘‘(a) GENERAL POWERS.—

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

20 the power to—

21 ‘‘(A) approve the annual budget of the Com22 mission;

23 ‘‘(B) promulgate regulations to carry out

24 this Act;
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1 ‘‘(C) establish a rate of fees and assessments,

2 as provided in section 17;

3 ‘‘(D) conduct investigations, including back4 ground investigations;

5 ‘‘(E) issue a temporary order closing the

6 operation of gaming activities;

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

8 temporary order closing the operation of gaming

9 activities, as provided in section 15;

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

11 revoke, or suspend any license issued under any

12 licensing authority conferred upon the Commis13 sion pursuant to this Act or fine any person li14 censed pursuant to this Act for violation of any

15 of the conditions of licensure under this Act;

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

17 which class II or class III gaming is conducted

18 on Indian lands;

19 ‘‘(I) demand access to and inspect, examine,

20 photocopy, and audit all papers, books, and

21 records of class II and class III gaming activities

22 conducted on Indian lands and any other mat23 ters necessary to carry out the duties of the Com24 mission under this Act;
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1 ‘‘(J) use the United States mails in the

2 same manner and under the same conditions as

3 any department or agency of the United States;

4 ‘‘(K) procure supplies, services, and prop5 erty by contract in accordance with applicable

6 Federal laws;

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

8 State, tribal, and private entities for activities

9 necessary to the discharge of the duties of the

10 Commission;

11 ‘‘(M) serve or cause to be served, process or

12 notices of the Commission in a manner provided

13 for by the Commission or in a manner provided

14 for the service of process and notice in civil ac15 tions in accordance with the applicable rules of

16 a tribal, State, or Federal court;

17 ‘‘(N) propound written interrogatories and

18 appoint hearing examiners, to whom may be del19 egated the power and authority to administer

20 oaths, issue subpoenas, propound written inter21 rogatories, and require testimony under oath;

22 ‘‘(O) conduct all administrative hearings

23 pertaining to civil violations of this Act (includ24 ing any civil violation of a regulation promul25 gated under this Act);
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1 ‘‘(P) collect all fees and assessments author2 ized by this Act and the regulations promulgated

3 pursuant to this Act;

4 ‘‘(Q) assess penalties for violations of the

5 provisions of this Act and the regulations pro6 mulgated pursuant to this Act;

7 ‘‘(R) provide training and technical assist8 ance to Indian tribes with respect to all aspects

9 of the conduct and regulation of gaming activi10 ties;

11 ‘‘(S) monitor and, as specifically authorized

12 by this Act, regulate class II and class III gam13 ing;

14 ‘‘(T) establish precertification criteria that

15 apply to management contractors and other per16 sons having material control over a gaming op17 eration;

18 ‘‘(U) approve all management-related and

19 gaming-related contracts; and

20 ‘‘(V) in addition to the authorities otherwise

21 specified in this Act, delegate, by published order

22 or rule, any of the functions of the Commission

23 (including functions with respect to hearing, de24 termining, ordering, certifying, reporting, or oth25 erwise acting on the part of the Commission con-
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1 cerning any work, business, or matter) to a divi2 sion of the Commission, an individual member

3 of the Commission, an administrative law judge,

4 or an employee of the Commission.

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

6 this section may be construed to authorize the delega7 tion of the function of rulemaking, as described in

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

9 Code, with respect to general rules (as distinguished

10 from rules of particular applicability), or the promul11 gation of any other rule.

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

13 ‘‘(1) IN GENERAL.—With respect to the delega14 tion of any of the functions of the Commission, the

15 Commission shall retain a discretionary right to re16 view the action of any division of the Commission,

17 individual member of the Commission, administrative

18 law judge, or employee of the Commission, upon the

19 initiative of the Commission.

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

21 one member of the Commission shall be sufficient to

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

23 the Commission for review, and the Commission shall

24 ratify, revise, or reject the action under review not
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1 later than the last day of the applicable period speci2 fied in regulations promulgated by the Commission.

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

4 Commission declines to exercise the right to such re5 view or fails to exercise such right within the applica6 ble period specified in regulations promulgated by the

7 Commission, the action of any such division of the

8 Commission, individual member of the Commission,

9 administrative law judge, or employee, shall, for all

10 purposes, including any appeal or review of such ac11 tion, be deemed an action of the Commission.

12 ‘‘(c) MINIMUM REQUIREMENTS.—Pursuant to the pro13 cedures described in section 9(d), after receiving rec14 ommendations from the Advisory Committee, the Commis15 sion shall establish minimum Federal standards—

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

17 persons, and licensing of gaming operations associ18 ated with the conduct or regulation of class II and

19 class III gaming on Indian lands by tribal govern20 ments; and

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

22 gaming activities on Indian lands, including—

23 ‘‘(A) surveillance and security personnel

24 and systems capable of monitoring all gaming

25 activities, including the conduct of games, cash-
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1 iers’ cages, change booths, count rooms, move2 ments of cash and chips, entrances and exits to

3 gaming facilities, and other critical areas of any

4 gaming facility;

5 ‘‘(B) procedures for the protection of the in6 tegrity of the rules for the play of games and

7 controls related to such rules;

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

9 ‘‘(D) controls over gambling devices and

10 equipment; and

11 ‘‘(E) accounting and auditing.

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

13 ‘‘(1) IN GENERAL.—The Commission may secure

14 from any department or agency of the United States

15 information necessary to enable the Commission to

16 carry out this Act. Unless otherwise prohibited by

17 law, upon request of the Chairperson, the head of such

18 department or agency shall furnish such information

19 to the Commission.

20 ‘‘(2) INFORMATION TRANSFER.—The Commission

21 may secure from any law enforcement agency or gam22 ing regulatory agency of any State, Indian tribe, or

23 foreign nation information necessary to enable the

24 Commission to carry out this Act. Unless otherwise

25 prohibited by law, upon request of the Chairperson,
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1 the head of any State or tribal law enforcement agen2 cy shall furnish such information to the Commission.

3 ‘‘(3) PRIVILEGED INFORMATION.—Notwithstand4 ing sections 552 and 552a of title 5, United States

5 Code, the Commission shall protect from disclosure

6 information provided by Federal, State, tribal, or

7 international law enforcement or gaming regulatory

8 agencies.

9 ‘‘(4) LAW ENFORCEMENT AGENCY.—For purposes

10 of this subsection, the Commission shall be considered

11 to be a law enforcement agency.

12 ‘‘(e) INVESTIGATIONS AND ACTIONS.—

13 ‘‘(1) IN GENERAL.—

14 ‘‘(A) POSSIBLE VIOLATIONS.—The Commis15 sion may, at the discretion of the Commission,

16 and as specifically authorized by this Act, con17 duct such investigations as the Commission con18 siders necessary to determine whether any person

19 has violated, is violating, or is conspiring to vio20 late any provision of this Act (including any

21 rule or regulation promulgated under this Act).

22 The Commission may require or permit any per23 son to file with the Commission a statement in

24 writing, under oath, or otherwise as the Commis25 sion may determine, concerning all relevant facts
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1 and circumstances regarding the matter under

2 investigation by the Commission pursuant to

3 this subsection.

4 ‘‘(B) ADMINISTRATIVE INVESTIGATIONS.—

5 The Commission is authorized, at the discretion

6 of the Commission, and as specifically author7 ized by this Act, to investigate such facts, condi8 tions, practices, or matters as the Commission

9 considers necessary or proper to aid in—

10 ‘‘(i) the enforcement of any provision

11 of this Act;

12 ‘‘(ii) prescribing rules and regulations

13 under this Act; or

14 ‘‘(iii) securing information to serve as

15 a basis for recommending further legislation

16 concerning the matters to which this Act re17 lates.

18 ‘‘(2) ADMINISTRATIVE AUTHORITIES.—

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

20 investigation or any other proceeding conducted

21 under this Act, any member of the Commission

22 or any officer designated by the Commission is

23 empowered to administer oaths and affirmations,

24 subpoena witnesses, compel their attendance, take

25 evidence, and require the production of any
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1 books, papers, correspondence, memoranda, or

2 other records that the Commission considers rel3 evant or material to the inquiry. The attendance

4 of such witnesses and the production of any such

5 records may be required from any place in the

6 United States at any designated place of hear7 ing.

8 ‘‘(B) REQUIRING APPEARANCES OR TESTI9 MONY.—In case of contumacy by, or refusal to

10 obey any subpoena issued to, any person, the

11 Commission may invoke the jurisdiction of any

12 court of the United States within the jurisdiction

13 of which an investigation or proceeding is car14 ried on, or where such person resides or carries

15 on business, in requiring the attendance and tes16 timony of witnesses and the production of books,

17 papers, correspondence, memoranda, and other

18 records.

19 ‘‘(C) COURT ORDERS.—Any court described

20 in subparagraph (B) may issue an order requir21 ing such person to appear before the Commission

22 or member of the Commission or officer des23 ignated by the Commission, there to produce

24 records, if so ordered, or to give testimony touch25 ing the matter under investigation or in ques-
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1 tion, and any failure to obey such order of the

2 court may be punished by such court as a con3 tempt of such court.

4 ‘‘(3) ENFORCEMENT.—

5 ‘‘(A) IN GENERAL.—If the Commission de6 termines that any person is engaged, has en7 gaged, or is conspiring to engage, in any act or

8 practice constituting a violation of any provi9 sion of this Act (including any rule or regulation

10 promulgated under this Act), the Commission

11 may—

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

13 district court of the United States or the

14 United States District Court for the District

15 of Columbia to enjoin such act or practice,

16 and upon a proper showing, the court shall

17 grant, without bond, a permanent or tem18 porary injunction or restraining 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 or

24 civil proceedings.

25 ‘‘(B) STATUTORY CONSTRUCTION.—
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1 ‘‘(i) IN GENERAL.—The authority of

2 the Commission to conduct investigations

3 and take actions under subparagraph (A)

4 may not be construed to affect in any way

5 the authority of any other agency or depart6 ment of the United States to carry out stat7 utory responsibilities of such agency or de8 partment.

9 ‘‘(ii) EFFECT OF TRANSMITTAL BY THE

10 COMMISSION.—The transmittal by the Com11 mission pursuant to subparagraph (A)(ii)

12 may not be construed to constitute a condi13 tion precedent with respect to any action

14 taken by any department or agency referred

15 to in clause (i).

16 ‘‘(4) WRITS, INJUNCTIONS, AND ORDERS.—Upon

17 application of the Commission, each district court of

18 the United States shall have jurisdiction to issue

19 writs of mandamus, injunctions, and orders com20 manding any person to comply with the provisions of

21 this Act (including any rule or regulation promul22 gated under this Act).

23 ‘‘SEC. 8. REGULATORY FRAMEWORK.

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

25 tribes shall retain the right of such tribes to, in a manner
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1 that meets or exceeds minimum Federal standards estab2 lished by the Commission pursuant to section 7(c)—

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

4 ‘‘(2) conduct background investigations and issue

5 licenses to persons who are required to obtain a li6 cense under section 10(a).

7 ‘‘(b) CLASS III GAMING CONDUCTED UNDER A COM8 PACT.—For class III gaming conducted under the authority

9 of a compact entered into pursuant to section 12, an Indian

10 tribe or a State, or both, as provided in a compact or by

11 tribal ordinance or resolution, shall, in a manner that

12 meets or exceeds minimum Federal standards established by

13 the Commission pursuant to section 7(c)—

14 ‘‘(1) monitor and regulate gaming;

15 ‘‘(2) conduct background investigations and issue

16 licenses to persons who are required to obtain a li17 cense pursuant to section 10(a); and

18 ‘‘(3) establish and regulate internal control sys19 tems.

20 ‘‘(c) VIOLATIONS OF MINIMUM FEDERAL STAND21 ARDS.—

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

23 an Indian tribe that regulates or conducts class II

24 gaming on Indian lands substantially fails to meet or

25 enforce minimum Federal standards for that gaming,
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1 after providing the Indian tribe notice and reasonable

2 opportunity to cure violations and to be heard, and

3 after the exhaustion of other authorized remedies and

4 sanctions, the Commission shall have the authority to

5 conduct background investigations, issue licenses, and

6 establish and regulate internal control systems relat7 ing to class II gaming conducted by the Indian tribe.

8 Such authority of the Commission may be exclusive

9 until such time as the regulatory and internal control

10 systems of the Indian tribe meet or exceed the mini11 mum Federal standards concerning regulatory, licens12 ing, or internal control requirements established by

13 the Commission for such gaming.

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

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

16 class III gaming on Indian lands fails to meet or en17 force minimum Federal standards for class III gam18 ing, after providing notice and reasonable oppor19 tunity to cure violations and be heard, and after the

20 exhaustion of other authorized remedies and sanc21 tions, the Commission shall have the authority to con22 duct background investigations, issue licenses, and es23 tablish and regulate internal control systems relating

24 to class III gaming conducted by the Indian tribe.

25 Such authority of the Commission may be exclusive
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1 until such time as the regulatory or internal control

2 systems of the Indian tribe or the State (or both) meet

3 or exceed the minimum Federal regulatory, licensing,

4 or internal control requirements established by the

5 Commission for such gaming.

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

7 REQUIREMENTS AND LICENSING STAND8 ARDS.

9 ‘‘(a) ESTABLISHMENT.—The President shall establish

10 an advisory committee to be known as the ‘Advisory Com11 mittee on Minimum Regulatory Requirements and Licens12 ing Standards’.

13 ‘‘(b) MEMBERS.—

14 ‘‘(1) IN GENERAL.—The Advisory Committee

15 shall be composed of 8 members who shall be ap16 pointed by the President not later than 120 days after

17 the date of enactment of the Indian Gaming Regu18 latory Act Amendments Act of 1995, of which—

19 ‘‘(A) 3 members, selected from a list of rec20 ommendations submitted to the President by the

21 Chairperson and Vice Chairperson of the Com22 mittee on Indian Affairs of the Senate and the

23 Chairperson and ranking minority member of

24 the Subcommittee on Native American and Insu25 lar Affairs of the Committee on Resources of the
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1 House of Representatives, shall be members of,

2 and represent, Indian tribal governments in3 volved in gaming covered under this Act;

4 ‘‘(B) 3 members, selected from a list of rec5 ommendations submitted to the President by the

6 Majority Leader and the Minority Leader of the

7 Senate and the Speaker and the Minority Leader

8 of the House of Representatives, shall represent

9 State governments involved in gaming covered

10 under this Act, and shall have experience as

11 State gaming regulators; and

12 ‘‘(C) 2 members shall each be an employee

13 of the Department of Justice.

14 ‘‘(2) VACANCIES.—Any vacancy on the Advisory

15 Committee shall not affect its powers, but shall be

16 filled in the same manner as the original appoint17 ment.

18 ‘‘(c) RECOMMENDATIONS FOR MINIMUM FEDERAL

19 STANDARDS.—

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

21 after the date on which all initial members of the Ad22 visory Committee have been appointed under sub23 section (b), the Advisory Committee shall develop and

24 submit to the entities referred to in paragraph (2)

25 recommendations for minimum Federal standards re-
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1 lating to background investigations, internal control

2 systems, and licensing standards (as described in sec3 tion 7(c)).

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

5 Advisory Committee shall submit the recommenda6 tions described in paragraph (1) to the Committee on

7 Indian Affairs of the Senate, the Subcommittee on

8 Native American and Insular Affairs of the Commit9 tee on Resources of the House of Representatives, the

10 Commission, and to each federally recognized Indian

11 tribe.

12 ‘‘(3) FACTORS FOR CONSIDERATION.—While the

13 minimum Federal standards recommended or estab14 lished pursuant to this section may be developed with

15 due regard for existing industry standards, the Advi16 sory Committee, and the Commission in promulgat17 ing standards pursuant to subsection (d), shall also

18 consider—

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

20 compared to non-Indian commercial, govern21 mental, and charitable gaming;

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

23 size of tribal gaming activity;

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

25 tribes to regulate their own affairs; and
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1 ‘‘(D) the findings and purposes set forth in

2 sections 2 and 3.

3 ‘‘(d) REGULATIONS.—Upon receipt of the rec4 ommendations of the Advisory Committee, the Commission

5 shall hold public hearings on the recommendations. After

6 the conclusion of the hearings, the Commission shall pro7 mulgate regulations establishing minimum Federal regu8 latory requirements and licensing standards.

9 ‘‘(e) TRAVEL.—Each member of the Advisory Commit10 tee who is appointed under subparagraph (A) or (B) of sub11 section (b)(1) and who is not an officer or employee of the

12 Federal Government or a government of a State shall be

13 reimbursed for travel and per diem in lieu of subsistence

14 expenses during the performance of duties of the Advisory

15 Committee while away from the home or the regular place

16 of business of that member, in accordance with subchapter

17 I of chapter 57 of title 5, United States Code.

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

19 cease to exist on the date that is 10 days after the date

20 on which the Advisory Committee submits the recommenda21 tions under subsection (c).

22 ‘‘(g) EXEMPTION FROM FEDERAL ADVISORY COMMIT23 TEE ACT.—All activities of the Advisory Committee shall

24 be exempt from the Federal Advisory Committee Act (5

25 U.S.C. App.).
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1 ‘‘SEC. 10. LICENSING.

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

3 shall be required of—

4 ‘‘(1) a gaming operation;

5 ‘‘(2) a key employee of a gaming operation;

6 ‘‘(3) a management or gaming-related contrac7 tor;

8 ‘‘(4) a gaming service industry; or

9 ‘‘(5) a person who has material control, either

10 directly or indirectly, over a licensed gaming oper11 ation.

12 ‘‘(b) CERTAIN LICENSES FOR MANAGEMENT CONTRAC13 TORS AND GAMING OPERATIONS.—Notwithstanding any

14 other provision of law relating to licenses issued by an In15 dian tribe or a State (or both) pursuant to this Act, the

16 Commission may require licenses of—

17 ‘‘(1) management contractors; and

18 ‘‘(2) gaming operations.

19 ‘‘(c) GAMING OPERATION LICENSE.—

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

21 operate unless all required licenses and approvals for

22 the gaming operation have been obtained in accord23 ance with this Act.

24 ‘‘(2) WRITTEN AGREEMENTS.—

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

26 gaming facility or activity, each management
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1 contract for the gaming operation shall be in

2 writing and filed with the Commission pursuant

3 to section 13.

4 ‘‘(B) EXPRESS APPROVAL REQUIRED.—No

5 management contract referred to in subpara6 graph (A) shall be effective unless the Commis7 sion expressly approves the management con8 tract.

9 ‘‘(C) REQUIREMENT OF ADDITIONAL PROVI10 SIONS.—The Commission may require that a

11 management contract referred to in subpara12 graph (A) include any provisions that are rea13 sonably necessary to meet the requirements of

14 this Act.

15 ‘‘(D) INELIGIBILITY OR EXEMPTION.—The

16 Commission may, with respect to an applicant

17 who does not have the ability to exercise any sig18 nificant control over a licensed gaming oper19 ation—

20 ‘‘(i) determine that applicant to be in21 eligible to hold a license; or

22 ‘‘(ii) exempt that applicant from being

23 required to hold a license.

24 ‘‘(d) DENIAL OF LICENSE.—The Commission, in the

25 exercise of the specific licensure power conferred upon the
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1 Commission by this Act, shall deny a license to any appli2 cant who is disqualified on the basis of a failure to meet

3 any of the minimum Federal standards promulgated by the

4 Commission pursuant to section 7(c).

5 ‘‘(e) APPLICATION FOR LICENSE.—

6 ‘‘(1) IN GENERAL.—Upon the filing of the mate7 rials specified in paragraph (2), the Commission shall

8 conduct an investigation into the qualifications of an

9 applicant. The Commission may conduct a nonpublic

10 hearing on such investigation concerning the quali11 fications of the applicant in accordance with regula12 tions promulgated by the Commission.

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

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

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

16 Commission is specifically authorized to issue

17 pursuant to this Act; and

18 ‘‘(B) such supplemental information as the

19 Commission may require.

20 ‘‘(3) TIMING OF HEARINGS AND INVESTIGATIONS

21 AND FINAL ACTION.—

22 ‘‘(A) DEADLINE FOR HEARINGS AND INVES23 TIGATIONS.—Not later than 90 days after receiv24 ing the materials described in paragraph (2), the

25 Commission shall complete the investigation de-
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1 scribed in paragraph (1) and any hearings asso2 ciated with the investigation conducted pursuant

3 to that paragraph.

4 ‘‘(B) DEADLINE FOR FINAL ACTION.—Not

5 later than 10 days after the date specified in

6 subparagraph (A), the Commission shall take

7 final action to grant or deny a license to the ap8 plicant.

9 ‘‘(4) DENIALS.—

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

11 disapprove an application submitted to the Com12 mission under this section and deny a license to

13 the applicant.

14 ‘‘(B) ORDER OF DENIAL.—If the Commis15 sion denies a license to an applicant under sub16 paragraph (A), the Commission shall prepare an

17 order denying such license. In addition, if an

18 applicant requests a statement of the reasons for

19 the denial, the Commission shall prepare such

20 statement and provide the statement to the ap21 plicant. The statement shall include specific

22 findings of fact.

23 ‘‘(5) ISSUANCE OF LICENSES.—If the Commis24 sion is satisfied that an applicant is qualified to re-
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1 ceive a license, the Commission shall issue a license

2 to the applicant upon tender of—

3 ‘‘(A) all license fees and assessments as re4 quired by this Act (including any rule or regula5 tion promulgated under this Act); and

6 ‘‘(B) such bonds as the Commission may re7 quire for the faithful performance of all require8 ments imposed by this Act (including any rule

9 or regulation promulgated under this Act).

10 ‘‘(6) BONDS.—

11 ‘‘(A) AMOUNTS.—The Commission shall, by

12 rules of uniform application, fix the amount of

13 each bond that the Commission requires under

14 this section in such amount as the Commission

15 considers appropriate.

16 ‘‘(B) USE OF BONDS.—The bonds furnished

17 to the Commission under this paragraph may be

18 applied by the Commission to the payment of

19 any unpaid liability of the licensee under this

20 Act.

21 ‘‘(C) TERMS.—Each bond required in ac22 cordance with this section shall be furnished—

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

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

25 satisfactory guarantor; or
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•S 487 RS

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

2 issued by a banking institution acceptable

3 to the Commission.

4 ‘‘(D) TREATMENT OF PRINCIPAL AND IN5 COME.—If a bond is furnished in cash or nego6 tiable securities, the principal shall be placed

7 without restriction at the disposal of the Com8 mission, but any income shall inure to the bene9 fit of the licensee.

10 ‘‘(f) RENEWAL OF LICENSE.—

11 ‘‘(1) IN GENERAL.—

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

13 the Commission to deny, revoke, or suspend li14 censes, any license issued under this section and

15 in force shall be renewed by the Commission for

16 the next succeeding license period upon proper

17 application for renewal and payment of license

18 fees and assessments, as required by applicable

19 law (including any rule or regulation promul20 gated under this Act).

21 ‘‘(B) RENEWAL TERM.—Subject to subpara22 graph (C), the term of a renewal period for a li23 cense issued under this section shall be for a pe24 riod of not more than—
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•S 487 RS

1 ‘‘(i) 2 years, for each of the first 2 re2 newal periods succeeding the initial issu3 ance of a license pursuant to subsection (e);

4 and

5 ‘‘(ii) 3 years, for each succeeding re6 newal period.

7 ‘‘(C) REOPENING HEARINGS.—The Commis8 sion may reopen licensing hearings at any time

9 after the Commission has issued or renewed a li10 cense.

11 ‘‘(2) TRANSITION.—

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

13 other provision of this subsection, the Commis14 sion shall, for the purpose of facilitating the ad15 ministration of this Act, renew a license for an

16 activity covered under subsection (a) that is held

17 by a person on the date of enactment of the In18 dian Gaming Regulatory Act Amendments Act of

19 1995 for a renewal period of 18 months.

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

21 Commission shall act upon a timely filed license

22 renewal application prior to the date of expira23 tion of the then current license.

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

25 for renewal shall be filed with the Commission not
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1 later than 90 days prior to the expiration of the then

2 current license, and shall be accompanied by full pay3 ment of all license fees and assessments that are re4 quired by law to be paid to the Commission.

5 ‘‘(4) RENEWAL CERTIFICATE.—Upon renewal of

6 a license, the Commission shall issue an appropriate

7 renewal certificate, validating device, or sticker,

8 which shall be attached to the license.

9 ‘‘(g) HEARINGS.—

10 ‘‘(1) IN GENERAL.—The Commission shall estab11 lish procedures for the conduct of hearings associated

12 with licensing, including procedures for issuing, de13 nying, limiting, conditioning, restricting, revoking, or

14 suspending any such license.

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

16 hearing conducted for any of the purposes authorized

17 in this section, the Commission shall—

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

19 ‘‘(B) issue an order; and

20 ‘‘(C) serve such decision and order upon the

21 affected parties.

22 ‘‘(3) REHEARING.—

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

24 upon a motion made not later than 10 days

25 after the service of a decision and order, order a
137

•S 487 RS

1 rehearing before the Commission on such terms

2 and conditions as the Commission considers just

3 and proper if the Commission finds cause to be4 lieve that the decision and order should be recon5 sidered in view of the legal, policy, or factual

6 matters that are—

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

8 the motion; or

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

10 motion made by the Commission.

11 ‘‘(B) ACTION AFTER REHEARING.—Follow12 ing a rehearing conducted by the Commission,

13 the Commission shall—

14 ‘‘(i) render a decision of the Commis15 sion;

16 ‘‘(ii) issue an order; and

17 ‘‘(iii) serve such decision and order

18 upon the affected parties.

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

20 and order made by the Commission under para21 graph (2) (if no motion for a rehearing is made

22 by the date specified in subparagraph (A)), or a

23 decision and order made by the Commission

24 upon rehearing shall constitute final agency ac25 tion for purposes of judicial review.
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1 ‘‘(4) JURISDICTION.—The United States Court of

2 Appeals for the District of Columbia Circuit shall

3 have jurisdiction to review the licensing decisions and

4 orders of the Commission.

5 ‘‘(h) LICENSE REGISTRY.—The Commission shall—

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

7 granted or denied pursuant to this Act; and

8 ‘‘(2) make the information contained in the reg9 istry available to Indian tribes to assist the licensure

10 and regulatory activities of Indian tribes.

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

12 AND CLASS II GAMING ON INDIAN LANDS.

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

14 lands shall be within the exclusive jurisdiction of the Indian

15 tribes and shall not be subject to the provisions of this Act.

16 ‘‘(b) CLASS II GAMING.—

17 ‘‘(1) IN GENERAL.—Any class II gaming on In18 dian lands shall be within the jurisdiction of the In19 dian tribes, but shall be subject to the provisions of

20 this Act.

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

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

23 on Indian lands within the jurisdiction of such tribe,

24 if—
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•S 487 RS

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

2 a State that permits such gaming for any pur3 pose by any person; and

4 ‘‘(B) the class II gaming operation meets or

5 exceeds the requirements of sections 7(c) and 10.

6 ‘‘(3) REQUIREMENTS FOR CLASS II GAMING OP7 ERATIONS.—

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

9 ensure that, with regard to any class II gaming

10 operation on Indian lands—

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

12 Indian tribe for each place, facility, or loca13 tion on Indian lands at which class II gam14 ing is conducted;

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

16 the sole proprietary interest and respon17 sibility for the conduct of any class II gam18 ing activity, unless the conditions of clause

19 (ix) apply;

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

21 II gaming activity are used only—

22 ‘‘(I) to fund tribal government op23 erations or programs;
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•S 487 RS

1 ‘‘(II) to provide for the general

2 welfare of the Indian tribe and the

3 members of the Indian tribe;

4 ‘‘(III) to promote tribal economic

5 development;

6 ‘‘(IV) to donate to charitable orga7 nizations;

8 ‘‘(V) to help fund operations of

9 local government agencies;

10 ‘‘(VI) to comply with the provi11 sions of section 17; or

12 ‘‘(VIII) to make per capita pay13 ments to members of the Indian tribe

14 pursuant to clause (viii);

15 ‘‘(iv) the Indian tribe provides to the

16 Commission annual outside audit reports of

17 the class II gaming operation of the Indian

18 tribe, which may be encompassed within ex19 isting independent tribal audit systems;

20 ‘‘(v) each contract for supplies, serv21 ices, or concessions for a contract amount

22 equal to more than $50,000 per year, other

23 than a contract for professional legal or ac24 counting services, relating to such gaming is

25 subject to such independent audit reports
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•S 487 RS

1 and any audit conducted by the Commis2 sion;

3 ‘‘(vi) the construction and mainte4 nance of a class II gaming facility and the

5 operation of class II gaming are conducted

6 in a manner that adequately protects the

7 environment and public health and safety;

8 ‘‘(vii) there is instituted an adequate

9 system that—

10 ‘‘(I) ensures that—

11 ‘‘(aa) background investiga12 tions are conducted on primary

13 management officials, key employ14 ees, and persons having material

15 control, either directly or indi16 rectly, in a licensed class II gam17 ing operation, and gaming-related

18 contractors associated with a li19 censed class II gaming operation;

20 and

21 ‘‘(bb) oversight of such offi22 cials and the management by such

23 officials is conducted on an ongo24 ing basis; and

25 ‘‘(II) includes—
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•S 487 RS

1 ‘‘(aa) tribal licenses for per2 sons involved in class II gaming

3 operations, issued in accordance

4 with sections 7(c) and 10;

5 ‘‘(bb) a standard whereby

6 any person whose prior activities,

7 criminal record, if any, or reputa8 tion, habits, and associations pose

9 a threat to the public interest or

10 to the effective regulation of gam11 ing, or create or enhance the dan12 gers of unsuitable, unfair, or ille13 gal practices and methods and ac14 tivities in the conduct of gaming

15 shall not be eligible for employ16 ment or licensure; and

17 ‘‘(cc) notification by the In18 dian tribe to the Commission of

19 the results of such background in20 vestigation before the issuance of

21 any such license;

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

23 gaming activities conducted or licensed by

24 any Indian tribal government are used to
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•S 487 RS

1 make per capita payments to members of

2 the Indian tribe only if—

3 ‘‘(I) the Indian tribe has prepared

4 a plan to allocate revenues to uses au5 thorized by clause (iii);

6 ‘‘(II) the Secretary determines

7 that the plan is adequate, particularly

8 with respect to uses described in

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

10 ‘‘(III) the interests of minors and

11 other legally incompetent persons who

12 are entitled to receive any of the per

13 capita payments are protected and

14 preserved;

15 ‘‘(IV) the per capita payments to

16 minors and other legally incompetent

17 persons are disbursed to the parents or

18 legal guardians of such minors or le19 gally incompetent persons in such

20 amounts as may be necessary for the

21 health, education, or welfare of each

22 such minor or legally incompetent per23 son under a plan approved by the Sec24 retary and the governing body of the

25 Indian tribe; and
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•S 487 RS

1 ‘‘(V) the per capita payments are

2 subject to Federal income taxation and

3 Indian tribes withhold such taxes when

4 such payments are made;

5 ‘‘(ix) a separate license is issued by the

6 Indian tribe for any class II gaming oper7 ation owned by any person or entity other

8 than the Indian tribe and conducted on In9 dian lands, that includes—

10 ‘‘(I) requirements set forth in

11 clauses (v) through (vii) (other than

12 the requirements of clause

13 (vii)(II)(cc)), and (x); and

14 ‘‘(II) requirements that are at

15 least as restrictive as those established

16 by State law governing similar gaming

17 within the jurisdiction of the State

18 within which such Indian lands are lo19 cated; and

20 ‘‘(x) no person or entity, other than the

21 Indian tribe, is eligible to receive a tribal

22 license for a class II gaming operation con23 ducted on Indian lands within the jurisdic24 tion of the Indian tribe if such person or

25 entity would not be eligible to receive a
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•S 487 RS

1 State license to conduct the same activity

2 within the jurisdiction of the State.

3 ‘‘(B) TRANSITION.—

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

5 and (ix) of subparagraph (A) shall not bar

6 the continued operation of a class II gam7 ing operation described in clause (ix) of

8 that subparagraph that was operating on

9 September 1, 1986, if—

10 ‘‘(I) such gaming operation is li11 censed and regulated by an Indian

12 tribe;

13 ‘‘(II) income to the Indian tribe

14 from such gaming is used only for the

15 purposes described in subparagraph

16 (A)(iii);

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

18 the net revenues from such gaming op19 eration is income to the licensing In20 dian tribe; and

21 ‘‘(IV) the owner of such gaming

22 operation pays an appropriate assess23 ment to the Commission pursuant to

24 section 17 for the regulation of such

25 gaming.
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•S 487 RS

1 ‘‘(ii) LIMITATIONS ON EXEMPTION.—

2 The exemption from application provided

3 under clause (i) may not be transferred to

4 any person or entity and shall remain in

5 effect only during such period as the gam6 ing operation remains within the same na7 ture and scope as such gaming operation

8 was actually operated on October 17, 1988.

9 ‘‘(C) LIST.—The Commission shall—

10 ‘‘(i) maintain a list of each gaming

11 operation that is subject to subparagraph

12 (B); and

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

14 Register.

15 ‘‘(c) PETITION FOR CERTIFICATE OF SELF-REGULA16 TION.—

17 ‘‘(1) IN GENERAL.—Any Indian tribe that oper18 ates, directly or with a management contract, a class

19 II gaming activity may petition the Commission for

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

21 ‘‘(A) has continuously conducted such activ22 ity for a period of not less than 3 years, includ23 ing a period of not less than 1 year that begins

24 after the date of the enactment of the Indian
147

•S 487 RS

1 Gaming Regulatory Act Amendments Act of

2 1995; and

3 ‘‘(B) has otherwise complied with the provi4 sions of this Act.

5 ‘‘(2) ISSUANCE OF CERTIFICATE OF SELF-REGU6 LATION.—The Commission shall issue a certificate of

7 self-regulation under this subsection if the Commis8 sion determines, on the basis of available information,

9 and after a hearing if requested by the tribe, that the

10 Indian tribe has—

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

12 manner which has—

13 ‘‘(i) resulted in an effective and honest

14 accounting of all revenues;

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

16 fair, and honest operation of the activity;

17 and

18 ‘‘(iii) been generally free of evidence of

19 criminal or dishonest activity;

20 ‘‘(B) adopted and implemented adequate

21 systems for—

22 ‘‘(i) accounting for all revenues from

23 the gaming activity;
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•S 487 RS

1 ‘‘(ii) investigation, licensing, and mon2 itoring of all employees of the gaming activ3 ity; and

4 ‘‘(iii) investigation, enforcement, and

5 prosecution of violations of its gaming ordi6 nance and regulations;

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

8 and economically sound basis; and

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

10 tribe is required to pay to the Commission under

11 this Act.

12 ‘‘(3) EFFECT OF CERTIFICATE OF SELF-REGULA13 TION.—During the period in which a certificate of

14 self-regulation issued under this subsection is in effect

15 with respect to a gaming activity conducted by an In16 dian tribe—

17 ‘‘(A) the tribe shall—

18 ‘‘(i) submit an annual independent

19 audit report as required by subsection

20 (b)(3)(A)(iv); and

21 ‘‘(ii) submit to the Commission a com22 plete re ́sume ́ of each employee hired and li23 censed by the tribe subsequent to the issu24 ance of a certificate of self-regulation; and
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•S 487 RS

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

2 under section 17 on gaming operated by the tribe

pursuant to paragraph (1) in excess of 1 3 ⁄4 of 1

4 percent of the net revenue from such activity.

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

6 just cause and after a reasonable opportunity for a

7 hearing, rescind a certificate of self-regulation issued

8 under this subsection by majority vote of the members

9 of the Commission.

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

11 any license by an Indian tribe under this section, the In12 dian tribe receives reliable information from the Commis13 sion indicating that a licensee does not meet any standard

14 established under section 7(c) or 10, or any other applicable

15 regulation promulgated under this Act, the Indian tribe—

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

17 ‘‘(2) after providing notice, holding a hearing,

18 and making findings of fact under procedures estab19 lished pursuant to applicable tribal law, may revoke

20 such license.

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

22 ‘‘(a) REQUIREMENTS FOR THE CONDUCT OF CLASS III

23 GAMING ON INDIAN LANDS.—
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•S 487 RS

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

2 shall be lawful on Indian lands only if such activities

3 are—

4 ‘‘(A) authorized by—

5 ‘‘(i) a compact that—

6 ‘‘(I) is approved pursuant to trib7 al law by the governing body of the In8 dian tribe having jurisdiction over

9 such lands;

10 ‘‘(II) meets the requirements of

11 section 11(b)(3) for the conduct of class

12 II gaming; and

13 ‘‘(III) is approved by the Sec14 retary under paragraph (4); or

15 ‘‘(ii) the Secretary under procedures

16 prescribed by the Secretary under para17 graph (3)(B)(vii);

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

19 gaming for any purpose by any person; and

20 ‘‘(C) conducted in conformance with—

21 ‘‘(i) a compact that—

22 ‘‘(I) is in effect; and

23 ‘‘(II) is entered into by an Indian

24 tribe and a State and approved by the

25 Secretary under paragraph (4); or
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1 ‘‘(ii) procedures prescribed by the Sec2 retary under paragraph (3)(B)(vii).

3 ‘‘(2) COMPACT NEGOTIATIONS.—

4 ‘‘(A) IN GENERAL.—Any Indian tribe hav5 ing jurisdiction over the Indian lands upon

6 which a class III gaming activity is being con7 ducted, or is to be conducted, shall request the

8 State in which such lands are located to enter

9 into negotiations for the purpose of entering into

10 a compact governing the conduct of gaming ac11 tivities. Upon receiving such a request, the State

12 shall negotiate with the Indian tribe in good

13 faith to enter into such a compact.

14 ‘‘(B) APPROVAL BY THE SECRETARY.—Any

15 State and any Indian tribe may enter into a

16 compact governing class III gaming activities on

17 the Indian lands of the Indian tribe, but such

18 compact shall take effect only when notice of ap19 proval by the Secretary of such compact has been

20 published by the Secretary in the Federal Reg21 ister.

22 ‘‘(3) ACTIONS.—

23 ‘‘(A) IN GENERAL.—The United States dis24 trict courts shall have jurisdiction over—
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•S 487 RS

1 ‘‘(i) any cause of action initiated by

2 an Indian tribe arising from the failure of

3 a State to enter into negotiations with the

4 Indian tribe for the purpose of entering into

5 a compact under paragraph (2) or to con6 duct such negotiations in good faith;

7 ‘‘(ii) any cause of action initiated by

8 a State or Indian tribe to enjoin a class III

9 gaming activity located on Indian lands

10 and conducted in violation of any compact

11 entered into under paragraph (2) that is in

12 effect; and

13 ‘‘(iii) any cause of action initiated by

14 the Secretary to enforce the procedures pre15 scribed under subparagraph (B)(vii).

16 ‘‘(B) PROCEDURES.—

17 ‘‘(i) IN GENERAL.—An Indian tribe

18 may initiate a cause of action described in

19 subparagraph (A)(i) only after the expira20 tion of the 180-day period beginning on the

21 date on which the Indian tribe requests the

22 State to enter into negotiations under para23 graph (2)(A).

24 ‘‘(ii) BURDEN OF PROOF.—In any ac25 tion described in subparagraph (A)(i), upon
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•S 487 RS

1 introduction of evidence by an Indian tribe

2 that—

3 ‘‘(I) a compact has not been en4 tered into under paragraph (2); and

5 ‘‘(II) the State did not respond to

6 the request of the Indian tribe to nego7 tiate such a compact or did not re8 spond to such request in good faith,

9 the burden of proof shall be upon the State

10 to prove that the State has negotiated with

11 the Indian tribe in good faith to conclude a

12 compact governing the conduct of gaming

13 activities.

14 ‘‘(iii) FAILURE TO NEGOTIATE.—If, in

15 any action described in subparagraph

16 (A)(i), the court finds that the State has

17 failed to negotiate in good faith with the In18 dian tribe to conclude a compact governing

19 the conduct of gaming activities, the court

20 shall order the State and the Indian tribe to

21 conclude such a compact within a 60-day

22 period. In determining in such an action

23 whether a State has negotiated in good

24 faith, the court—
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•S 487 RS

1 ‘‘(I) may take into account the

2 public interest, public safety, criminal3 ity, financial integrity, and adverse

4 economic impacts on existing gaming

5 activities; and

6 ‘‘(II) shall consider any demand

7 by the State for direct taxation of the

8 Indian tribe or of any Indian lands as

9 evidence that the State has not nego10 tiated in good faith.

11 ‘‘(iv) PROCEDURE IN THE EVENT OF

12 FAILURE TO CONCLUDE A COMPACT.—If a

13 State and an Indian tribe fail to conclude

14 a compact governing the conduct of gaming

15 activities on the Indian lands subject to the

16 jurisdiction of such Indian tribe within the

17 60-day period provided in the order of a

18 court issued under clause (iii), the Indian

19 tribe and the State shall each submit to a

20 mediator appointed by the court a proposed

21 compact that represents their last best offer

22 for a compact. The mediator shall select

23 from the 2 proposed compacts the 1 which

24 best comports with the terms of this Act and
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•S 487 RS

1 any other applicable Federal law and with

2 the findings and order of the court.

3 ‘‘(v) SUBMISSION OF COMPACT TO

4 STATE AND INDIAN TRIBE.—The mediator

5 appointed under clause (iv) shall submit to

6 the State and Indian tribe the proposed

7 compact selected by the mediator under

8 clause (iv).

9 ‘‘(vi) CONSENT OF STATE.—If a State

10 consents to a proposed compact submitted to

11 the State under clause (v) during the 60-

12 day period beginning on the date on which

13 the proposed compact is submitted to the

14 State under clause (v), the proposed com15 pact shall be treated as a compact entered

16 into under paragraph (2).

17 ‘‘(vii) FAILURE OF STATE TO CON18 SENT.—If the State does not consent during

19 the 60-day period described in clause (vi) to

20 a proposed compact submitted by a medi21 ator under clause (v), the mediator shall no22 tify the Secretary and the Secretary shall

23 prescribe, in consultation with the Indian

24 tribe, procedures—
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•S 487 RS

1 ‘‘(I) that are consistent with the

2 proposed compact selected by the medi3 ator under clause (iv), the provisions of

4 this Act, and the relevant provisions of

5 the laws of the State; and

6 ‘‘(II) under which class III gam7 ing may be conducted on the Indian

8 lands over which the Indian tribe has

9 jurisdiction.

10 ‘‘(4) APPROVAL BY SECRETARY.—

11 ‘‘(A) IN GENERAL.—The Secretary is au12 thorized to approve any compact entered into be13 tween an Indian tribe and a State governing

14 gaming on Indian lands of such Indian tribe.

15 ‘‘(B) DISAPPROVAL BY SECRETARY.—The

16 Secretary may disapprove a compact described

17 in subparagraph (A) only if such compact vio18 lates—

19 ‘‘(i) any provision of this Act;

20 ‘‘(ii) any other provision of Federal

21 law that does not relate to jurisdiction over

22 gaming on Indian lands; or

23 ‘‘(iii) the trust obligation of the United

24 States to Indians.
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•S 487 RS

1 ‘‘(C) FAILURE OF THE SECRETARY TO TAKE

2 FINAL ACTION.—If the Secretary does not ap3 prove or disapprove a compact described in sub4 paragraph (A) before the expiration of the 45-

5 day period beginning on the date on which the

6 compact is submitted to the Secretary for ap7 proval, the compact shall be considered to have

8 been approved by the Secretary, but only to the

9 extent the compact is consistent with the provi10 sions of this Act.

11 ‘‘(D) PUBLICATION OF NOTICE.—The Sec12 retary shall publish in the Federal Register no13 tice of any compact that is approved, or consid14 ered to have been approved, under this para15 graph.

16 ‘‘(E) EFFECT OF PUBLICATION OF COM17 PACT.—Except for an appeal conducted under

18 subchapter II of chapter 5 of title 5, United

19 States Code, by an Indian tribe or by a State as20 sociated with the publication of the compact, the

21 publication of a compact pursuant to subpara22 graph (D) or subsection (c)(4) that permits a

23 form of class III gaming shall, for purposes of

24 this Act, be conclusive evidence that such class

25 III gaming is an activity subject to negotiations
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•S 487 RS

1 under the laws of the State where the gaming is

2 to be conducted, in any matter under consider3 ation by the Commission or a Federal court.

4 ‘‘(F) EFFECTIVE DATE OF COMPACT.—A

5 compact shall become effective upon the publica6 tion of the compact in the Federal Register by

7 the Secretary.

8 ‘‘(G) DUTIES OF COMMISSION.—Consistent

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

10 the Commission shall monitor and, if specifically

11 authorized, regulate and license class III gaming

12 with respect to any compact that is published in

13 the Federal Register.

14 ‘‘(5) PROVISIONS OF COMPACTS.—

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

16 under this subsection may include provisions re17 lating to—

18 ‘‘(i) the application of the criminal

19 and civil laws (including any rule or regu20 lation) of the Indian tribe or the State that

21 are directly related to, and necessary for,

22 the licensing and regulation of such activity

23 in a manner consistent with sections 7(c),

24 8, and 10;
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1 ‘‘(ii) the allocation of criminal and

2 civil jurisdiction between the State and the

3 Indian tribe necessary for the enforcement

4 of such laws (including any rule or regula5 tion);

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

7 costs associated with such activities in such

8 amounts as are necessary to defray the costs

9 of regulating such activity;

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

11 such activity in amounts comparable to

12 amounts assessed by the State for com13 parable activities;

14 ‘‘(v) remedies for breach of compact

15 provisions;

16 ‘‘(vi) standards for the operation of

17 such activity and maintenance of the gam18 ing facility, including licensing, in a man19 ner consistent with sections 7(c), 8, and 10;

20 and

21 ‘‘(vii) any other subject that is directly

22 related to the operation of gaming activities

23 and the impact of gaming on tribal, State,

24 and local governments.
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1 ‘‘(B) STATUTORY CONSTRUCTION WITH RE2 SPECT TO ASSESSMENTS.—Except for any assess3 ments for services agreed to by an Indian tribe

4 in compact negotiations, nothing in this section

5 may be construed as conferring upon a State or

6 any political subdivision thereof the authority to

7 impose any tax, fee, charge, or other assessment

8 upon an Indian tribe, an Indian gaming oper9 ation or the value generated by the gaming oper10 ation, or any person or entity authorized by an

11 Indian tribe to engage in a class III gaming ac12 tivity in conformance with this Act.

13 ‘‘(6) STATUTORY CONSTRUCTION WITH RESPECT

14 TO CERTAIN RIGHTS OF INDIAN TRIBES.—Nothing in

15 this subsection impairs the right of an Indian tribe

16 to regulate class III gaming on the Indian lands of

17 the Indian tribe concurrently with a State and the

18 Commission, except to the extent that such regulation

19 is inconsistent with, or less stringent than, this Act

20 or any laws (including any rule or regulation) made

21 applicable by any compact entered into by the Indian

22 tribe under this subsection that is in effect.

23 ‘‘(7) EXEMPTION.—The provisions of sections 2

24 and 5 of the Act of January 2, 1951 (commonly re25 ferred to as the ‘Gambling Devices Transportation
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1 Act’) (64 Stat. 1134, chapter 1194, 15 U.S.C. 1172

2 and 1175) shall not apply to any class II gaming ac3 tivity or any gaming activity conducted pursuant to

4 a compact entered into after the date of enactment of

5 this Act or conducted pursuant to procedures pre6 scribed by the Secretary under this Act, but in no

7 event shall this paragraph be construed as invalidat8 ing any exemption from section 2 or 5 of the Act of

9 January 2, 1951, for any compact entered into prior

10 to the date of enactment of this Act or any procedures

11 for conducting a gaming activity prescribed by the

12 Secretary prior to such date of enactment.

13 ‘‘(b) JURISDICTION OF UNITED STATES DISTRICT

14 COURT FOR THE DISTRICT OF COLUMBIA.—The United

15 States District Court for the District of Columbia shall have

16 jurisdiction over any action initiated by the Secretary, the

17 Commission, a State, or an Indian tribe to enforce any pro18 vision of a compact under subsection (a) that is in effect

19 or to enjoin a class III gaming activity located on Indian

20 lands and conducted in violation of such compact that is

21 in effect and that was entered into under subsection (a).

22 ‘‘(c) REVOCATION OF ORDINANCE.—

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

24 Indian tribe, in its sole discretion, may adopt an or25 dinance or resolution revoking any prior ordinance or
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1 resolution that authorized class III gaming on the In2 dian lands of the Indian tribe. Such revocation shall

3 render class III gaming illegal on the Indian lands

4 of such Indian tribe.

5 ‘‘(2) PUBLICATION OF REVOCATION.—An Indian

6 tribe shall submit any revocation ordinance or resolu7 tion described in paragraph (1) to the Commission.

8 Not later than 90 days after the date on which the

9 Commission receives such ordinance or resolution, the

10 Commission shall publish such ordinance or resolu11 tion in the Federal Register. The revocation provided

12 by such ordinance or resolution shall take effect on the

13 date of such publication.

14 ‘‘(3) CONDITIONAL OPERATION.—Notwithstand15 ing any other provision of this subsection—

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

17 III gaming activity pursuant to this subsection

18 on the date on which an ordinance or resolution

19 described in paragraph (1) that revokes author20 ization for such class III gaming activity is pub21 lished in the Federal Register may, during the 1-

22 year period beginning on the date on which such

23 revocation, ordinance, or resolution is published

24 under paragraph (2), continue to operate such

25 activity in conformance with an applicable com-
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1 pact approved or issued under subsection (a)

2 that is in effect; and

3 ‘‘(B) any civil action that arises before, and

4 any crime that is committed before, the expira5 tion of such 1-year period shall not be affected

6 by such revocation ordinance, or resolution.

7 ‘‘(d) CERTAIN CLASS III GAMING ACTIVITIES.—

8 ‘‘(1) COMPACTS ENTERED INTO BEFORE THE

9 DATE OF ENACTMENT OF THE INDIAN GAMING REGU10 LATORY ACT AMENDMENTS ACT OF 1995.—

11 ‘‘(A) IN GENERAL.—Subject to subpara12 graph (B), class III gaming activities that are

13 authorized under a compact approved, or proce14 dures prescribed, by the Secretary under the au15 thority of this Act prior to the date of enactment

16 of the Indian Gaming Regulatory Act Amend17 ments Act of 1995 shall, during such period as

18 the compact is in effect, remain lawful for the

19 purposes of this Act, notwithstanding the Indian

20 Gaming Regulatory Act Amendments Act of

21 1995 and the amendments made by such Act or

22 any change in State law enacted after the ap23 proval or issuance of the compact.

24 ‘‘(B) COMPACT OR PROCEDURES SUBJECT

25 TO MINIMUM REGULATORY STANDARDS.—Sub-
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1 paragraph (A) shall apply to a compact or pro2 cedures described in that subparagraph on the

3 condition that any class III gaming activity

4 conducted under the compact or procedures shall

5 be subject to all Federal minimum regulatory

6 standards established under this Act and the reg7 ulations promulgated under this Act.

8 ‘‘(2) COMPACT ENTERED INTO AFTER THE DATE

9 OF ENACTMENT OF THE INDIAN GAMING REGULATORY

10 ACT AMENDMENTS ACT OF 1995.—Any compact en11 tered into under subsection (a) after the date specified

12 in paragraph (1) shall remain lawful for the purposes

13 of this Act, notwithstanding any change in State law

14 enacted after the approval or issuance of the compact.

15 ‘‘SEC. 13. REVIEW OF CONTRACTS.

16 ‘‘(a) CONTRACTS INCLUDED.—The Commission shall,

17 in accordance with this section, review and approve or dis18 approve—

19 ‘‘(1) any management contract for the operation

20 and management of any gaming activity that an In21 dian tribe may engage in under this Act; and

22 ‘‘(2) unless licensed by an Indian tribe consistent

23 with the minimum Federal standards adopted pursu24 ant to section 7(c), any gaming-related contract.
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1 ‘‘(b) MANAGEMENT CONTRACT REQUIREMENTS.—The

2 Commission shall approve any management contract be3 tween an Indian tribe and a person licensed by an Indian

4 tribe or the Commission that is entered into pursuant to

5 this Act only if the Commission determines that the contract

6 provides for—

7 ‘‘(1) adequate accounting procedures that are

8 maintained, and verifiable financial reports that are

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

10 tribe on a monthly basis;

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

12 appropriate officials of the Indian tribe who shall

13 have the right to verify the daily gross revenues and

14 income derived from any gaming activity;

15 ‘‘(3) a minimum guaranteed payment to the In16 dian tribe that has preference over the retirement of

17 any development and construction costs;

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

19 any development and construction costs;

20 ‘‘(5) a contract term of not to exceed 5 years, ex21 cept that, upon the request of an Indian tribe, the

22 Commission may authorize a contract term that ex23 ceeds 5 years but does not exceed 7 years if the Com24 mission is satisfied that the capital investment re-
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1 quired, and the income projections for, the particular

2 gaming activity require the additional time; and

3 ‘‘(6) grounds and mechanisms for the termi4 nation of the contract, but any such termination shall

5 not require the approval of the Commission.

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

7 NET REVENUES.—

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

9 approve a management contract that provides for a

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

11 of a tribal gaming activity if the Commission deter12 mines that such percentage fee is reasonable, taking

13 into consideration surrounding circumstances.

14 ‘‘(2) FEE AMOUNT.—Except as provided in para15 graph (3), a fee described in paragraph (1) shall not

16 exceed an amount equal to 30 percent of the net reve17 nues described in such paragraph.

18 ‘‘(3) EXCEPTION.—Upon the request of an In19 dian tribe, if the Commission is satisfied that the

20 capital investment required, and income projections

21 for, a tribal gaming activity, necessitate a fee in ex22 cess of the amount specified in paragraph (2), the

23 Commission may approve a management contract

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

25 an amount in excess of the amount specified in para-
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1 graph (2), but not to exceed 40 percent of the net reve2 nues described in paragraph (1).

3 ‘‘(d) GAMING-RELATED CONTRACT REQUIREMENTS.—

4 The Commission shall approve a gaming-related contract

5 covered under subsection (a)(2) that is entered into pursu6 ant to this Act only if the Commission determines that the

7 contract provides for—

8 ‘‘(1) grounds and mechanisms for termination of

9 the contract, but such termination shall not require

10 the approval of the Commission; and

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

12 may be empowered to impose by this Act.

13 ‘‘(e) TIME PERIOD FOR REVIEW.—

14 ‘‘(1) IN GENERAL.—Except as provided in para15 graph (2), not later than 90 days after the date on

16 which a management contract or other gaming-related

17 contract is submitted to the Commission for approval,

18 the Commission shall approve or disapprove such con19 tract on the merits of the contract. The Commission

20 may extend the 90-day period for an additional pe21 riod of not more than 45 days if the Commission no22 tifies the Indian tribe in writing of the reason for the

23 extension of the period. The Indian tribe may bring

24 an action in the United States District Court for the

25 District of Columbia to compel action by the Commis-
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1 sion if a contract has not been approved or dis2 approved by the termination date of an applicable pe3 riod under this subsection.

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

5 ACT ON CERTAIN GAMING-RELATED CONTRACTS.—Any

6 gaming-related contract for an amount less than or

7 equal to $100,000 that is submitted to the Commis8 sion pursuant to paragraph (1) by a person who

9 holds a valid license that is in effect under this Act

10 shall be deemed to be approved, if by the date that is

11 90 days after the contract is submitted to the Com12 mission, the Commission fails to approve or dis13 approve the contract.

14 ‘‘(f) CONTRACT MODIFICATIONS AND VOID CON15 TRACTS.—The Commission, after providing notice and a

16 hearing on the record—

17 ‘‘(1) shall have the authority to require appro18 priate contract modifications to ensure compliance

19 with the provisions of this Act; and

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

21 Commission under this Act if the Commission deter22 mines that any provision of this Act has been violated

23 by the terms of the contract.

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

25 regulated by this Act may transfer or, in any other manner,
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1 convey any interest in land or other real property, unless

2 specific statutory authority exists, all necessary approvals

3 for such transfer or conveyance have been obtained, and

4 such transfer or conveyance is clearly specified in the con5 tract.

6 ‘‘(h) AUTHORITY OF THE SECRETARY.—The authority

7 of the Secretary under section 2103 of the Revised Statutes

8 (25 U.S.C. 81) shall not extend to any contract or agree9 ment that is regulated pursuant to this Act.

10 ‘‘(i) DISAPPROVAL OF CONTRACTS.—The Commission

11 may not approve a contract if the Commission determines

12 that—

13 ‘‘(1) any person having a direct financial inter14 est in, or management responsibility for, such con15 tract, and, in the case of a corporation, any individ16 ual who serves on the board of directors of such cor17 poration, and any of the stockholders who hold (di18 rectly or indirectly) 10 percent or more of its issued

19 and outstanding stock—

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

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

22 contract;

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

24 gaming offense;
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1 ‘‘(C) has knowingly and willfully provided

2 materially important false statements or infor3 mation to the Commission or the Indian tribe

4 pursuant to this Act or has refused to respond to

5 questions propounded by the Commission; or

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

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

8 reputation, habits, and associations pose a threat

9 to the public interest or to the effective regulation

10 and control of gaming, or create or enhance the

11 dangers of unsuitable, unfair, or illegal practices,

12 methods, and activities in the conduct of gaming

13 or the carrying on of the business and financial

14 arrangements incidental thereto;

15 ‘‘(2) the contractor—

16 ‘‘(A) has unduly interfered or influenced for

17 its gain or advantage any decision or process of

18 tribal government relating to the gaming activ19 ity; or

20 ‘‘(B) has attempted to interfere or influence

21 a decision pursuant to subparagraph (A);

22 ‘‘(3) the contractor has deliberately or substan23 tially failed to comply with the terms of the contract;

24 or
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1 ‘‘(4) a trustee, exercising the skill and diligence

2 that a trustee is commonly held to, would not approve

3 the contract.

4 ‘‘SEC. 14. REVIEW OF EXISTING CONTRACTS; INTERIM AU5 THORITY.

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

7 ‘‘(1) IN GENERAL.—At any time after the Com8 mission is sworn in and has promulgated regulations

9 for the implementation of this Act, the Commission

10 shall notify each Indian tribe and management con11 tractor who, prior to the enactment of the Indian

12 Gaming Regulatory Act Amendments Act of 1995, en13 tered into a management contract that was approved

14 by the Secretary, that the Indian tribe is required to

15 submit to the Commission such contract, including all

16 collateral agreements relating to the gaming activity,

17 for review by the Commission not later than 60 days

18 after such notification. Any such contract shall be

19 valid under this Act, unless the contract is dis20 approved by the Commission under this section.

21 ‘‘(2) REVIEW.—

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

23 days after the submission of a management con24 tract, including all collateral agreements, to the

25 Commission pursuant to this section, the Com-
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1 mission shall review the contract to determine

2 whether the contract meets the requirements of

3 section 13 and was entered into in accordance

4 with the procedures under such section.

5 ‘‘(B) APPROVAL OF CONTRACT.—The Com6 mission shall approve a management contract

7 submitted for review under subsection (a) if the

8 Commission determines that—

9 ‘‘(i) the management contract meets

10 the requirements of section 13; and

11 ‘‘(ii) the management contractor has

12 obtained all of the licenses that the contrac13 tor is required to obtain under this Act.

14 ‘‘(C) NOTIFICATION OF NECESSARY MODI15 FICATIONS.—If the Commission determines that

16 a contract submitted under this section does not

17 meet the requirements of section 13—

18 ‘‘(i) the Commission shall provide the

19 parties to such contract written notification

20 of the necessary modifications; and

21 ‘‘(ii) the parties shall have 180 days

22 after the date on which such notification is

23 provided to make the modifications.

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

25 GAMING COMMISSION.—
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1 ‘‘(1) IN GENERAL.—Notwithstanding any other

2 provision of this Act, the Chairman and the associate

3 members of the National Indian Gaming Commission

4 who are holding office on the day before the date of

5 enactment of the Indian Gaming Regulatory Act

6 Amendments Act of 1995 shall exercise the authorities

7 described in paragraph (2) until such time as all of

8 the initial members of the Federal Indian Gaming

9 Regulatory Commission are sworn into office.

10 ‘‘(2) AUTHORITIES.—Until the date specified in

11 paragraph (1), the Chairman and the associate mem12 bers of the National Indian Gaming Commission re13 ferred to in that paragraph shall exercise those au14 thorities vested in the Federal Indian Gaming Regu15 latory Commission by this Act (other than the author16 ity specified in section 7(a)(1)(A) and any other au17 thority directly related to the administration of the

18 Federal Indian Gaming Regulatory Commission as

19 an independent establishment, as defined in section

20 104 of title 5, United States Code).

21 ‘‘(3) REGULATIONS.—Until such time as the

22 Commission promulgates revised regulations after the

23 date of enactment of the Indian Gaming Regulatory

24 Act Amendments Act of 1995, the regulations promul25 gated under this Act, as in effect on the day before
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1 the date of enactment of the Indian Gaming Regu2 latory Act Amendments Act of 1995, shall apply.

3 ‘‘SEC. 15. CIVIL PENALTIES.

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

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

6 this Act or any rule or regulation promulgated under this

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

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

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

10 to not more than $50,000 per day for each such violation.

11 ‘‘(b) ASSESSMENT AND COLLECTION.—

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

13 under this section shall be assessed by the Commission

14 and collected in a civil action brought by the Attorney

15 General on behalf of the United States. Before the

16 Commission refers civil penalty claims to the Attor17 ney General, the Commission may compromise the

18 civil penalty after affording the person charged with

19 a violation referred to in subsection (a), an oppor20 tunity to present views and evidence in support of

21 such action by the Commission to establish that the

22 alleged violation did not occur.

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

24 amount of a civil penalty assessed under this section,

25 the Commission shall take into account—
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1 ‘‘(A) the nature, circumstances, extent, and

2 gravity of the violation committed;

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

4 have committed such violation, the degree of cul5 pability, any history of prior violations, ability

6 to pay, the effect on ability to continue to do

7 business; and

8 ‘‘(C) such other matters as justice may re9 quire.

10 ‘‘(c) TEMPORARY CLOSURES.—

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

12 the temporary closure of all or part of an Indian

13 gaming operation for a substantial violation of any

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

15 ‘‘(2) HEARING ON ORDER OF TEMPORARY CLO16 SURE.—

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

18 after the issuance of an order of temporary clo19 sure, the Indian tribe or the individual owner of

20 a gaming operation shall have the right to re21 quest a hearing on the record before the Commis22 sion to determine whether such order should be

23 made permanent or dissolved.

24 ‘‘(B) DEADLINES RELATING TO HEARING.—

25 Not later than 30 days after a request for a hear-
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1 ing is made under subparagraph (A), the Com2 mission shall conduct such hearing. Not later

3 than 30 days after the termination of the hear4 ing, the Commission shall render a final decision

5 on the closure.

6 ‘‘SEC. 16. JUDICIAL REVIEW.

7 ‘‘A decision made by the Commission pursuant to sec8 tion 7, 8, 10, 13, 14, or 15 shall constitute a final agency

9 decision for purposes of appeal to the United States District

10 Court for the District of Columbia pursuant to chapter 7

11 of title 5, United States Code.

12 ‘‘SEC. 17. COMMISSION FUNDING.

13 ‘‘(a) ANNUAL FEES.—

14 ‘‘(1) IN GENERAL.—The Commission shall estab15 lish a schedule of fees to be paid to the Commission

16 annually by gaming operations for each class II and

17 class III gaming activity that is regulated by this

18 Act.

19 ‘‘(2) LIMITATION ON FEE RATES.—

20 ‘‘(A) IN GENERAL.—For each gaming oper21 ation regulated under this Act, the rate of the

22 fees imposed under the schedule established under

23 paragraph (1) shall not exceed 2 percent of the

24 net revenues of such gaming operation.
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1 ‘‘(B) TOTAL AMOUNT OF FEES.—The total

2 amount of all fees imposed during any fiscal

3 year under the schedule established under para4 graph (1) shall be equal to not more than

5 $25,000,000.

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

7 vote of a majority of the members of the Commission,

8 shall annually adopt the rate of the fees authorized by

9 this section. Such fees shall be payable to the Commis10 sion on a monthly basis.

11 ‘‘(4) ADJUSTMENT OF FEES.—The fees imposed

12 upon a gaming operation may be reduced by the

13 Commission to take into account any regulatory func14 tions that are performed by an Indian tribe, or the

15 Indian tribe and a State, pursuant to regulations

16 promulgated by the Commission.

17 ‘‘(5) CONSEQUENCES OF FAILURE TO PAY

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

19 schedule established under paragraph (1) shall, subject

20 to regulations promulgated by the Commission, be

21 grounds for revocation of the approval of the Commis22 sion of any license required under this Act for the op23 eration of gaming activities.

24 ‘‘(6) SURPLUS FUNDS.—To the extent that reve25 nues derived from fees imposed under the schedule es-
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1 tablished under paragraph (1) exceed the limitation

2 in paragraph (2)(B) or are not expended or commit3 ted at the close of any fiscal year, such surplus funds

4 shall be credited to each gaming activity that is the

5 subject of the fees on a pro rata basis against such

6 fees imposed for the succeeding year.

7 ‘‘(b) REIMBURSEMENT OF COSTS.—The Commission is

8 authorized to assess any applicant, except the governing

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

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

11 the actual costs of conducting all reviews and investigations

12 necessary for the Commission to determine whether a license

13 should be granted or denied to the applicant.

14 ‘‘(c) ANNUAL BUDGET.—

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

16 beginning after the date of enactment of the Indian

17 Gaming Regulatory Act Amendments Act of 1995,

18 and each fiscal year thereafter, the Commission shall

19 adopt an annual budget for the expenses and oper20 ation of the Commission.

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

22 budget of the Commission may include a request for

23 appropriations authorized under section 18.

24 ‘‘(3) SUBMISSION TO CONGRESS.—Notwithstand25 ing any other provision of law, a request for appro-
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1 priations made pursuant to paragraph (2) shall be

2 submitted by the Commission directly to the Congress

3 beginning with the request for the first full fiscal year

4 beginning after the date of enactment of this Act, and

5 shall include the proposed annual budget of the Com6 mission and the estimated revenues to be derived from

7 fees.

8 ‘‘SEC. 18. AUTHORIZATION OF APPROPRIATIONS.

9 ‘‘Subject to section 17, there are authorized to be ap10 propriated $5,000,000 to provide for the operation of the

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

12 to remain available until expended.

13 ‘‘SEC. 19. APPLICATION OF THE INTERNAL REVENUE CODE

14 OF 1986.

15 ‘‘(a) IN GENERAL.—The provisions of the Internal

16 Revenue Code of 1986 (including sections 1441, 3402(q),

17 6041, and chapter 35 of such Code) concerning the reporting

18 and withholding of taxes with respect to the winnings from

19 gaming or wagering operations shall apply to Indian gam20 ing operations conducted pursuant to this Act in the same

21 manner as such provisions apply to State gaming and wa22 gering operations. Any exemptions to States with respect

23 to taxation of such gaming or wagering operations shall

24 be allowed to Indian tribes.
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1 ‘‘(b) EXEMPTION.—The provisions of section 6050I of

2 the Internal Revenue Code of 1986 shall apply to an Indian

3 gaming establishment that is not designated by the Sec4 retary of the Treasury as a financial institution pursuant

5 to chapter 53 of title 31, United States Code.

6 ‘‘(c) STATUTORY CONSTRUCTION.—This section shall

7 apply notwithstanding any other provision of law enacted

8 before, on, or after, the date of enactment of this Act unless

9 such other provision of law specifically cites this subsection.

10 ‘‘(d) ACCESS TO INFORMATION BY STATE AND TRIBAL

11 GOVERNMENTS.—Subject to section 7(d), upon the request

12 of a State or the governing body of an Indian tribe, the

13 Commission shall make available any law enforcement in14 formation which it has obtained pursuant to such section,

15 unless otherwise prohibited by law, in order to enable the

16 State or the Indian tribe to carry out its responsibilities

17 under this Act or any compact approved by the Secretary.’’;

18 and

19 (5) by striking section 20(d).

20 SEC. 3. CONFORMING AMENDMENTS.

21 (a) TITLE 10.—Section 2323a(e)(1) of title 10, United

22 States Code, is amended by striking ‘‘section 4(4) of the

23 Indian Gaming Regulatory Act (102 Stat. 2468; 25 U.S.C.

24 2703(4))’’ and inserting ‘‘section 4(14) of the Indian Gam25 ing Regulatory Act’’.
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1 (b) TITLE 18.—Title 18, United States Code, is

2 amended—

3 (1) in section 1166—

4 (A) in subsection (c), by striking ‘‘a Tribal5 State compact approved by the Secretary of the

6 Interior under section 11(d)(8) of the Indian

7 Gaming Regulatory Act that is in effect’’ and in8 serting ‘‘a compact approved by the Secretary of

9 the Interior under section 12(a)(4) of the Indian

10 Gaming Regulatory Act that is in effect or pur11 suant to procedures prescribed by the Secretary

12 of the Interior under section 12(a)(3)(B)(iii) of

13 such Act’’; and

14 (B) in subsection (d), by striking ‘‘a Tribal15 State compact approved by the Secretary of the

16 Interior under section 11(d)(8) of the Indian

17 Gaming Regulatory Act’’ and inserting ‘‘a com18 pact approved by the Secretary of the Interior

19 under section 12(a)(4) of the Indian Gaming

20 Regulatory Act or pursuant to procedures pre21 scribed by the Secretary of the Interior under

22 section 12(a)(3)(B)(iii) of such Act,’’;

23 (2) in section 1167, by striking ‘‘pursuant to an

24 ordinance or resolution approved by the National In-
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1 dian Gaming Commission’’ each place it appears;

2 and

3 (3) in section 1168, by striking ‘‘pursuant to an

4 ordinance or resolution approved by the National In5 dian Gaming Commission,’’ each place it appears.

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

7 168(j)(4)(A)(iv) of the Internal Revenue Code of 1986 is

8 amended by striking ‘‘Indian Regulatory Act’’ and insert9 ing ‘‘Indian Gaming Regulatory Act’’.

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

11 amended—

12 (1) in section 3701(2)—

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

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

15 and inserting ‘‘section 4(15) of the Indian Gam16 ing Regulatory Act’’; and

17 (B) by striking ‘‘section 4(4) of such Act (25

18 U.S.C. 2703(4))’’ and inserting ‘‘section 4(14) of

19 such Act’’; and

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

21 of the Indian Gaming Regulatory Act’’ and inserting

22 ‘‘section 4(14) of the Indian Gaming Regulatory Act’’.

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