II

Calendar No. 948

106TH CONGRESS

2D SESSION S. 2920

[Report No. 106–498]

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

IN THE SENATE OF THE UNITED STATES

JULY 25, 2000

Mr. CAMPBELL introduced the following bill; which was read twice and

referred to the Committee on Indian Affairs

OCTOBER 11 (legislative day, SEPTEMBER 22), 2000

Reported by Mr. CAMPBELL, 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 Improvement Act of 2000’’.
2

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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 et

4 seq.) is amended—

5 (1) in section 7 (25 U.S.C. 2706)—

6 (A) in subsection (c)—

7 (i) in paragraph (3), by striking

8 ‘‘and’’ at the end thereof;

9 (ii) by redesignating paragraph (4) as

10 paragraph (5); and

11 (iii) by inserting after paragraph (3),

12 the following:

13 ‘‘(4) performance plans created under sub14 section (d), including copies of such plans; and’’; and

15 (B) by adding at the end the following:

16 ‘‘(d) PERFORMANCE PLANS.—The Commission shall

17 be subject to the requirements of section 306 of title 5,

18 United States Code, and sections 1115 and 1116 of title

19 31, United States Code (as added by the Government Per20 formance and Results Act (Public law 103–62)). Not later

21 than 1 year after the date of enactment of the Indian

22 Gaming Regulatory Improvement Act of 2000, the Com23 mission shall prepare and submit the initial strategic plan

24 required under such section 306 to the Director of the

25 Office of Management and Budget.’’;
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1 (2) in section 11(b)(2)(F)(i) (25 U.S.C.

2 2710(b)(2)(F)(i)), by striking ‘‘primary manage3 ment’’ and all that follows through ‘‘such officials’’

4 and inserting ‘‘tribal gaming commissioners, tribal

5 gaming commission employees, and primary manage6 ment officials and key employees of the gaming en7 terprise and that oversight of primary management

8 officials and key employees’’;

9 (3) by redesignating section 22 (25 U.S.C.

10 2721) as section 26; and

11 (4) by inserting after section 21 (25 U.S.C.

12 2720) the following:

13 ‘‘SEC. 22. FEE ASSESSMENTS.

14 ‘‘(a) ESTABLISHMENT OF SCHEDULE OF FEES.—

15 ‘‘(1) IN GENERAL.—Except as provided in this

16 section, the Commission shall establish a schedule of

17 fees to be paid annually to the Commission by each

18 gaming operation that conducts a class II or class

19 III gaming activity that is regulated by this Act.

20 ‘‘(2) RATES.—The rate of fees under the sched21 ule established under paragraph (1) that are im22 posed on the gross revenues from each activity de23 scribed in such paragraph shall be as follows:
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1 ‘‘(A) A fee of not more than 2.5 percent

2 shall be imposed on the first $1,500,000 of

3 such gross revenues.

4 ‘‘(B) A fee of not more than 5 percent

5 shall be imposed on amounts in excess of the

6 first $1,500,000 of such gross revenues.

7 ‘‘(3) TOTAL AMOUNT.—The total amount of all

8 fees imposed during any fiscal year under the sched9 ule established under paragraph (1) shall not exceed

10 $8,000,000.

11 ‘‘(b) COMMISSION AUTHORIZATION.—

12 ‘‘(1) IN GENERAL.—By a vote of not less than

13 2 members of the Commission the Commission shall

14 adopt the schedule of fees provided for under this

15 section. Such fees shall be payable to the Commis16 sion on a quarterly basis.

17 ‘‘(2) FEES ASSESSED FOR SERVICES.—The ag18 gregate amount of fees assessed under this section

19 shall be reasonably related to the costs of services

20 provided by the Commission to Indian tribes under

21 this Act (including the cost of issuing regulations

22 necessary to carry out this Act). In assessing and

23 collecting fees under this section, the Commission

24 shall take into account the duties of, and services

25 provided by, the Commission under this Act.
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1 ‘‘(3) FACTORS FOR CONSIDERATION.—In mak2 ing a determination of the amount of fees to be as3 sessed for any class II or class III gaming activity

4 under the schedule of fees under this section, the

5 Commission may provide for a reduction in the

6 amount of fees that otherwise would be collected on

7 the basis of the following factors:

8 ‘‘(A) The extent of the regulation of the

9 gaming activity involved by a State or Indian

10 tribe (or both).

11 ‘‘(B) The extent of self-regulating activi12 ties, as defined by this Act, conducted by the

13 Indian tribe.

14 ‘‘(C) Other factors determined by the Com15 mission, including

16 ‘‘(i) the unique nature of tribal gam17 ing as compared to commercial gaming,

18 other governmental gaming, and charitable

19 gaming;

20 ‘‘(ii) the broad variations in the na21 ture, scale, and size of tribal gaming activ22 ity;

23 ‘‘(iii) the inherent sovereign rights of

24 Indian tribes with respect to regulating the

25 affairs of Indian tribes;
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1 ‘‘(iv) the findings and purposes under

2 sections 2 and 3; and

3 ‘‘(v) any other matter that is con4 sistent with the purposes under section 3.

5 ‘‘(4) CONSULTATION.—In establishing a sched6 ule of fees under this section, the Commission shall

7 consult with Indian tribes.

8 ‘‘(c) TRUST FUND.—

9 ‘‘(1) ESTABLISHMENT.—There is established in

10 the Treasury of the United States a fund to be

11 known as the Indian Gaming Trust Fund (referred

12 to in this subsection as the ‘Trust Fund’), consisting

13 of such amounts as are—

14 ‘‘(A) transferred to the Trust Fund under

15 paragraph (2)(A);

16 ‘‘(B) appropriated to the Trust Fund; and

17 ‘‘(C) any interest earned on the investment

18 of amounts in the Trust Fund under subsection

19 (d).

20 ‘‘(2) TRANSFER OF AMOUNTS EQUIVALENT TO

21 FEES.—

22 ‘‘(A) IN GENERAL.—The Secretary of the

23 Treasury shall transfer to the Trust Fund an

24 amount equal to the aggregate amount of fees

25 collected under this section.
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1 ‘‘(B) TRANSFERS BASED ON ESTIMATES.—

2 The amounts required to be transferred to the

3 Trust Fund under subparagraph (A) shall be

4 transferred not less frequently than quarterly

5 from the general fund of the Treasury to the

6 Trust Fund on the basis of estimates made by

7 the Secretary of the Treasury. Proper adjust8 ment shall be made in amounts subsequently

9 transferred to the extent prior estimates were

10 in excess of or less than the amounts required

11 to be transferred.

12 ‘‘(d) INVESTMENTS.—

13 ‘‘(1) IN GENERAL.—It shall be the duty of the

14 Secretary of the Treasury to invest such portion of

15 the Trust Fund as is not, in the judgment of the

16 Secretary of the Treasury, required to meet current

17 withdrawals. The Secretary of the Treasury shall in18 vest the amounts deposited under subsection (c) only

19 in interest-bearing obligations of the United States

20 or in obligations guaranteed as to both principal and

21 interest by the United States.

22 ‘‘(2) SALE OF OBLIGATIONS.—Any obligation

23 acquired by the Trust Fund, except special obliga24 tions issued exclusively to the Trust Fund, may be

25 sold by the Secretary of the Treasury at the market
8

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1 price, and such special obligations may be redeemed

2 at par plus accrued interest.

3 ‘‘(3) CREDITS TO TRUST FUND.—The interest

4 on, and proceeds from, the sale or redemption of,

5 any obligations held in the Trust Fund shall be

6 credited to and form a part of the Trust Fund.

7 ‘‘(e) EXPENDITURES FROM TRUST FUND.—

8 ‘‘(1) IN GENERAL.—Amounts in the Trust

9 Fund shall be available to the Commission, as pro10 vided for in appropriations Acts, for carrying out the

11 duties of the Commission under this Act.

12 ‘‘(2) WITHDRAWAL AND TRANSFER OF

13 FUNDS.—Upon request of the Commission, the Sec14 retary of the Treasury shall withdraw amounts from

15 the Trust Fund and transfer such amounts to the

16 Commission for use in accordance with paragraph

17 (1).

18 ‘‘(f) LIMITATION ON TRANSFERS AND WITH19 DRAWALS.—Except as provided in subsection (e)(2), the

20 Secretary of the Treasury may not transfer or withdraw

21 any amount deposited under subsection (c).

22 ‘‘SEC. 23. MINIMUM STANDARDS.

23 ‘‘(a) CLASS I GAMING.—Notwithstanding any other

24 provision of law, class I gaming on Indian lands shall be
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1 within the exclusive jurisdiction of the Indian tribes and

2 shall not be subject to the provisions of this Act.

3 ‘‘(b) CLASS II GAMING.—Effective on the date of en4 actment of this section, an Indian tribe shall retain the

5 rights of that Indian tribe, with respect to class II gaming

6 and in a manner that meets or exceeds the minimum Fed7 eral standards established under section 11, to—

8 ‘‘(1) monitor and regulate that gaming;

9 ‘‘(2) conduct background investigations; and

10 ‘‘(3) establish and regulate internal control sys11 tems.

12 ‘‘(c) CLASS III GAMING UNDER A COMPACT.—With

13 respect to class III gaming that is conducted under a com14 pact entered into under this Act, an Indian tribe or a

15 State (or both), as provided for in such a compact or a

16 related tribal ordinance or resolution shall, in a manner

17 that meets or exceeds the minimum Federal standards es18 tablished by the Commission under section 11—

19 ‘‘(1) monitor and regulate that gaming;

20 ‘‘(2) conduct background investigations; and

21 ‘‘(3) establish and regulate internal control sys22 tems.

23 ‘‘(d) RULEMAKING.—The Commission may promul24 gate such regulations as may be necessary to carry out

25 this section.
10

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1 ‘‘SEC. 24. USE OF NATIONAL INDIAN GAMING COMMISSION

2 CIVIL FINES.

3 ‘‘(a) USE OF FUNDS.—The Secretary may provide

4 grants and technical assistance to Indian tribes from any

5 funds secured by the Commission pursuant to section 14,

6 which funds shall be made available only for the following

7 purposes:

8 ‘‘(1) To provide technical training and other as9 sistance to Indian tribes to strengthen the regulatory

10 integrity of Indian gaming.

11 ‘‘(2) To provide assistance to Indian tribes to

12 assess the feasibility of non-gaming economic devel13 opment activities on Indian lands.

14 ‘‘(3) To provide assistance to Indian tribes to

15 devise and implement programs and treatment serv16 ices for individuals diagnosed as problem gamblers.

17 ‘‘(4) To provide other forms of assistance to In18 dian tribes not inconsistent with the Indian Gaming

19 Regulatory Act.

20 ‘‘(b) CONSULTATION.—In carrying out this section,

21 the Secretary shall consult with Indian tribes and any

22 other appropriate tribal or Federal officials.

23 ‘‘(c) REGULATIONS.—The Secretary may promulgate

24 such regulations as may be necessary to carry out this

25 section.
11

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1 ‘‘SEC. 25. REGULATIONS.

2 ‘‘(a) IN GENERAL.—

3 ‘‘(1) PROMULGATION.—Not later than 90 days

4 after the date of enactment of the Indian Gaming

5 Regulatory Improvement Act of 2000, the Secretary

6 shall develop procedures under subchapter III of

7 chapter 5 of title 5, United States Code, to negotiate

8 and promulgate regulations relating to the classifica9 tion of games conducted by Indian tribes pursuant

10 to this Act.

11 ‘‘(2) PUBLICATION OF PROPOSED REGULA12 TIONS.—Not later than 1 year after the date of en13 actment of the Indian Gaming Regulatory Improve14 ment Act of 2000, the Secretary shall publish in the

15 Federal Register proposed regulations to implement

16 the amendments made by such Act.

17 ‘‘(b) COMMITTEE.—A negotiated rulemaking com18 mittee established pursuant to section 565 of title 5,

19 United States Code, to carry out this section shall be com20 posed only of Federal and Indian tribal government rep21 resentatives, a majority of whom shall be nominated by

22 and be representative of Indian tribes that conduct gam23 ing pursuant to this Act.’’.
12

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1 SEC. 3. APPLICATION OF GOVERNMENT PERFORMANCE

2 AND RESULTS ACT.

3 Section 306(f) of title 5, United States Code, is

4 amended by inserting ‘‘and includes the National Indian

5 Gaming Commission,’’ after ‘‘section 105,’’.

6 SECTION 1. SHORT TITLE.

7 This Act may be cited as the ‘‘Indian Gaming Regu8 latory Improvement Act of 2000’’.

9 SEC. 2. AMENDMENTS TO THE INDIAN GAMING REGU10 LATORY ACT.

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

12 et seq.) is amended—

13 (1) in section 4(7) (25 U.S.C. 2703(7)), by add14 ing at the end the following:

15 ‘‘(G) Notwithstanding any other provision of

16 law, sections 1 through 7 of the Act of January 2,

17 1951 (commonly known as the Gambling Devices

18 Transportation Act (15 U.S.C. 1171–1177)) shall not

19 apply to any gaming described in subparagraph

20 (A)(i) (class II gaming) where technologic aids are

21 used in connection with any such gaming.’’;

22 (2) in section 7 (25 U.S.C. 2706)—

23 (A) in subsection (c)—

24 (i) in paragraph (3), by striking

25 ‘‘and’’ at the end thereof;
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1 (ii) by redesignating paragraph (4) as

2 paragraph (5); and

3 (iii) by inserting after paragraph (3),

4 the following:

5 ‘‘(4) the strategic plan for Commission activi6 ties.’’; and

7 (B) by adding at the end the following:

8 ‘‘(d) STRATEGIC PLAN.—

9 ‘‘(1) IN GENERAL.—The strategic plan required

10 under subsection (c)(4) shall include—

11 ‘‘(A) a comprehensive mission statement

12 covering the major functions and operations of

13 the Commission;

14 ‘‘(B) the general goals and objectives, in15 cluding outcome-related goals and objectives, for

16 the major functions and operations of the Com17 mission;

18 ‘‘(C) a description of how the general goals

19 and objectives are to be achieved, including a de20 scription of the operational processes, skills and

21 technology, and the human, capital, information,

22 and other resources required to meet those goals

23 and objectives;
14

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1 ‘‘(D) a performance plan that shall be re2 lated to the general goals and objectives of the

3 strategic plan;

4 ‘‘(E) an identification of the key factors ex5 ternal to the Commission and beyond its control

6 that could significantly affect the achievement of

7 the general goals and objectives; and

8 ‘‘(F) a description of the program evalua9 tions used in establishing or revising the general

10 goals and objectives, with a schedule for future

11 program evaluations.

12 ‘‘(2) TERM OF PLAN.—The strategic plan shall

13 cover a period of not less than 5 fiscal years begin14 ning with the fiscal year in which the plan is sub15 mitted. The strategic plan shall be updated and re16 vised at least every 4 years.

17 ‘‘(3) PERFORMANCE PLAN.—The performance

18 plan under paragraph (1)(D) shall be consistent with

19 the strategic plan. In developing the performance

20 plan, the Commission should be consistent with the

21 requirements of section 1115 of title 31, United States

22 Code (the Government Performance and Results Act).

23 ‘‘(4) CONSULTATION.—In developing the stra24 tegic plan, the Commission shall consult with the

25 Congress, and shall solicit and consider the views and
15

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1 suggestions of those entities that may be potentially

2 affected by or interested in such a plan.’’;

3 (3) in section 11(b)(2)(F)(i) (25 U.S.C.

4 2710(b)(2)(F)(i)), by striking ‘‘primary manage5 ment’’ and all that follows through ‘‘such officials’’

6 and inserting ‘‘tribal gaming commissioners, tribal

7 gaming commission employees, and primary manage8 ment officials and key employees of the gaming enter9 prise and that oversight of primary management offi10 cials and key employees’’;

11 (4) by redesignating section 22 (25 U.S.C. 2721)

12 as section 25; and

13 (5) by inserting after section 21 (25 U.S.C.

14 2720) the following:

15 ‘‘SEC. 22. FEE ASSESSMENTS.

16 ‘‘(a) ESTABLISHMENT OF SCHEDULE OF FEES.—

17 ‘‘(1) IN GENERAL.—Except as provided in this

18 section, the Commission shall establish a schedule of

19 fees to be paid annually to the Commission by each

20 gaming operation that conducts a class II or class III

21 gaming activity that is regulated by this Act.

22 ‘‘(2) RATES.—The rate of fees under the schedule

23 established under paragraph (1) that are imposed on

24 the gross revenues from each activity described in

25 such paragraph shall be as follows:
16

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1 ‘‘(A) A fee of not more than 2.5 percent

2 shall be imposed on the first $1,500,000 of such

3 gross revenues.

4 ‘‘(B) A fee of not more than 5 percent shall

5 be imposed on amounts in excess of the first

6 $1,500,000 of such gross revenues.

7 ‘‘(3) TOTAL AMOUNT.—The total amount of all

8 fees imposed during any fiscal year under the sched9 ule established under paragraph (1) shall not exceed

10 $8,000,000.

11 ‘‘(b) COMMISSION AUTHORIZATION.—

12 ‘‘(1) IN GENERAL.—By a vote of not less than 2

13 members of the Commission the Commission shall

14 adopt the schedule of fees provided for under this sec15 tion. Such fees shall be payable to the Commission on

16 a quarterly basis.

17 ‘‘(2) FEES ASSESSED FOR SERVICES.—The ag18 gregate amount of fees assessed under this section

19 shall be reasonably related to the costs of services pro20 vided by the Commission to Indian tribes under this

21 Act (including the cost of issuing regulations nec22 essary to carry out this Act). In assessing and col23 lecting fees under this section, the Commission shall

24 take into account the duties of, and services provided

25 by, the Commission under this Act.
17

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1 ‘‘(3) FACTORS FOR CONSIDERATION.—In making

2 a determination of the amount of fees to be assessed

3 for any class II or class III gaming activity under

4 the schedule of fees under this section, the Commission

5 may provide for a reduction in the amount of fees

6 that otherwise would be collected on the basis of the

7 following factors:

8 ‘‘(A) The extent of the regulation of the

9 gaming activity involved by a State or Indian

10 tribe (or both).

11 ‘‘(B) The extent of self-regulating activities,

12 as defined by this Act, conducted by the Indian

13 tribe.

14 ‘‘(C) Other factors determined by the Com15 mission, including

16 ‘‘(i) the unique nature of tribal gaming

17 as compared to commercial gaming, other

18 governmental gaming, and charitable gam19 ing;

20 ‘‘(ii) the broad variations in the na21 ture, scale, and size of tribal gaming activ22 ity;

23 ‘‘(iii) the inherent sovereign rights of

24 Indian tribes with respect to regulating the

25 affairs of Indian tribes;
18

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1 ‘‘(iv) the findings and purposes under

2 sections 2 and 3;

3 ‘‘(v) the amount of interest or invest4 ment income derived from the Indian gam5 ing regulation accounts; and

6 ‘‘(vi) any other matter that is con7 sistent with the purposes under section 3.

8 ‘‘(4) CONSULTATION.—In establishing a schedule

9 of fees under this section, the Commission shall con10 sult with Indian tribes.

11 ‘‘(c) INDIAN GAMING REGULATION ACCOUNTS.—

12 ‘‘(1) IN GENERAL.—All fees and civil forfeitures

13 collected by the Commission pursuant to this Act shall

14 be maintained in separate, segregated accounts, and

15 shall only be expended for purposes set forth in this

16 Act.

17 ‘‘(2) INVESTMENTS.—It shall be the duty of the

18 Commission to invest such portion of the accounts

19 maintained under paragraph (1) as are not, in the

20 judgment of the Commission, required to meet imme21 diate expenses. The Commission shall invest the

22 amounts deposited under this Act only in interest23 bearing obligations of the United States or in obliga24 tions guaranteed as to both principal and interest by

25 the United States.
19

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1 ‘‘(3) SALE OF OBLIGATIONS.—Any obligation ac2 quired by the accounts maintained under paragraph

3 (1), except special obligations issued exclusively to

4 such accounts, may be sold by the Commission at the

5 market price, and such special obligations may be re6 deemed at par plus accrued interest.

7 ‘‘(4) CREDITS TO THE INDIAN GAMING REGU8 LATORY ACCOUNTS.—The interest on, and proceeds

9 from, the sale or redemption of any obligations held

10 in the accounts maintained under paragraph (1)

11 shall be credited to and form a part of such accounts.

12 ‘‘SEC. 23. MINIMUM STANDARDS.

13 ‘‘(a) CLASS I GAMING.—Notwithstanding any other

14 provision of law, class I gaming on Indian lands shall be

15 within the exclusive jurisdiction of the Indian tribes and

16 shall not be subject to the provisions of this Act.

17 ‘‘(b) CLASS II GAMING.—Effective on the date of enact18 ment of this section, an Indian tribe shall retain the rights

19 of that Indian tribe, with respect to class II gaming and

20 in a manner that meets or exceeds the minimum Federal

21 standards established under section 11, to—

22 ‘‘(1) monitor and regulate that gaming;

23 ‘‘(2) conduct background investigations; and

24 ‘‘(3) establish and regulate internal control sys25 tems.
20

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1 ‘‘(c) CLASS III GAMING UNDER A COMPACT.—With re2 spect to class III gaming that is conducted under a compact

3 entered into under this Act, an Indian tribe or a State (or

4 both), as provided for in such a compact or a related tribal

5 ordinance or resolution shall, in a manner that meets or

6 exceeds the minimum Federal standards established by the

7 Commission under section 11—

8 ‘‘(1) monitor and regulate that gaming;

9 ‘‘(2) conduct background investigations; and

10 ‘‘(3) establish and regulate internal control sys11 tems.

12 ‘‘(d) RULEMAKING.—The Commission may promul13 gate such additional regulations as may be necessary to

14 carry out this section.

15 ‘‘SEC. 24. USE OF NATIONAL INDIAN GAMING COMMISSION

16 CIVIL FINES.

17 ‘‘(a) IN GENERAL.—All funds secured by the Commis18 sion pursuant to section 14 shall be deposited in an Indian

19 gaming regulation account, as provided for in section 22(c).

20 ‘‘(b) USE OF FUNDS.—The Commission may provide

21 grants and technical assistance to Indian tribes from any

22 funds secured by the Commission pursuant to section 14,

23 which funds shall be made available only for the following

24 purposes:
21

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1 ‘‘(1) To provide technical training and other as2 sistance to Indian tribes to strengthen the regulatory

3 integrity of Indian gaming.

4 ‘‘(2) To provide assistance to Indian tribes to as5 sess the feasibility of non-gaming economic develop6 ment activities on Indian lands.

7 ‘‘(3) To provide assistance to Indian tribes to de8 vise and implement programs and treatment services

9 for individuals diagnosed as problem gamblers.

10 ‘‘(4) To provide other forms of assistance to In11 dian tribes not inconsistent with the Indian Gaming

12 Regulatory Act.

13 ‘‘(c) CONSULTATION.—In carrying out this section, the

14 Commission shall consult with Indian tribes and any other

15 appropriate tribal or Federal officials.

16 ‘‘(d) REGULATIONS.—The Commission may promul17 gate such regulations as may be necessary to carry out this

18 section.’’.

Calendar No. 948

106TH CONGRESS

2D SESSION S. 2920

[Report No. 106–498]

A BILL

To amend the Indian Gaming Regulatory Act, and

for other purposes.

OCTOBER 11 (legislative day, SEPTEMBER 22), 2000

Reported with an amendment