II

105TH CONGRESS

1ST SESSION S. 1077

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

IN THE SENATE OF THE UNITED STATES

JULY 28, 1997

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

was read twice and referred to the Committee on Indian Affairs

A BILL

To amend the Indian Gaming Regulatory Act, and for other

purposes.

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

3 SECTION 1. SHORT TITLE.

4 This Act may be cited as the ‘‘Indian Gaming Regu5 latory Act Amendments Act of 1997’’.

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

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

9 et seq.) is amended—

10 (1) by striking the first section and inserting

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

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

3 ‘Indian Gaming Regulatory Act’.

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

5 for this Act is as follows:

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

‘‘Sec. 2. Congressional findings.

‘‘Sec. 3. Purposes.

‘‘Sec. 4. Definitions.

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

‘‘Sec. 6. Powers of the Chairperson.

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

‘‘Sec. 8. Regulatory framework.

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

‘‘Sec. 10. Licensing.

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

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

‘‘Sec. 13. Review of contracts.

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

‘‘Sec. 15. Civil penalties.

‘‘Sec. 16. Judicial review.

‘‘Sec. 17. Commission funding.

‘‘Sec. 18. Authorization of appropriations.

‘‘Sec. 19. 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 ‘‘Congress finds that—

10 ‘‘(1) Indian tribes are—

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

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

2 subparagraph (A);

3 ‘‘(2) clear Federal standards and regulations

4 for the conduct of gaming on Indian lands will assist

5 tribal governments in assuring the integrity of gam6 ing activities conducted on Indian lands;

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

8 to promote tribal economic development, tribal self9 sufficiency, and strong Indian tribal governments;

10 ‘‘(4) while Indian tribes have the right to regu11 late the operation of gaming activities on Indian

12 lands, if those gaming activities are—

13 ‘‘(A) not specifically prohibited by Federal

14 law; and

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

16 matter of public policy permits those gaming

17 activities,

18 Congress has the authority to regulate the privilege

19 of doing business with Indian tribes in Indian coun20 try (as that term is defined in section 1151 of title

21 18, United States Code);

22 ‘‘(5) systems for the regulation of gaming ac23 tivities on Indian lands should meet or exceed feder24 ally established minimum regulatory requirements;
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1 ‘‘(6) the operation of gaming activities on In2 dian lands has had a significant impact on com3 merce with foreign nations, among the several States

4 and with the Indian tribes; and

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

6 powers to regulate Commerce with foreign nations,

7 and among the several States, and with the Indian

8 tribes, and this Act is enacted in the exercise of

9 those powers.

10 ‘‘SEC. 3. PURPOSES.

11 ‘‘The purposes of this Act are—

12 ‘‘(1) to ensure the right of Indian tribes to con13 duct gaming activities on Indian lands in a manner

14 consistent with the decision of the Supreme Court in

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

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

17 2d 244 (1987)), involving the Cabazon and Morongo

18 bands of Mission Indians;

19 ‘‘(2) to provide a statutory basis for the con20 duct of gaming activities on Indian lands as a means

21 of promoting tribal economic development, tribal

22 self-sufficiency, and strong Indian tribal govern23 ments;

24 ‘‘(3) to provide a statutory basis for the regula25 tion of gaming activities on Indian lands by an In-
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1 dian tribe that is adequate to shield those activities

2 from organized crime and other corrupting influ3 ences, to ensure that an Indian tribal government is

4 the primary beneficiary of the operation of gaming

5 activities, and to ensure that gaming is conducted

6 fairly and honestly by both the operator and players;

7 and

8 ‘‘(4) to declare that the establishment of inde9 pendent Federal regulatory authority for the conduct

10 of gaming activities on Indian lands and the estab11 lishment of Federal minimum regulatory require12 ments for the conduct of gaming activities on Indian

13 lands are necessary to protect that gaming.’’;

14 (3) in section 4—

15 (A) by redesignating paragraphs (7) and

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

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

18 and inserting the following new paragraphs:

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

20 any person who applies for a license pursuant to this

21 Act, including any person who applies for a renewal

22 of a license.

23 ‘‘(2) ADVISORY COMMITTEE.—The term ‘Advi24 sory Committee’ means the Advisory Committee on
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1 Minimum Regulatory Requirements and Licensing

2 Standards established under section 9(a).

3 ‘‘(3) ATTORNEY GENERAL.—The term ‘Attor4 ney General’ means the Attorney General of the

5 United States.

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

7 means the Chairperson of the Federal Indian Gam8 ing Regulatory Commission established under sec9 tion 5.

10 ‘‘(5) CLASS I GAMING.—The term ‘class I gam11 ing’ means social games played solely for prizes of

12 minimal value or traditional forms of Indian gaming

13 engaged in by individuals as a part of, or in connec14 tion with, tribal ceremonies or celebrations.’’;

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

16 and

17 (D) by adding after paragraph (7) (as re18 designated by subparagraph (A) of this para19 graph) the following new paragraphs:

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

21 means the Federal Indian Gaming Regulatory Com22 mission established under section 5.

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

24 agreement relating to the operation of class III gam-
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1 ing on Indian lands that is entered into pursuant to

2 this Act.

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

4 operation’ means an entity that conducts class II or

5 class III gaming on Indian lands.

6 ‘‘(11) GAMING-RELATED CONTRACT.—The term

7 ‘gaming-related contract’ means—

8 ‘‘(A) any agreement for an amount of

9 more than $50,000 per year under which an In10 dian tribe or an agent of any Indian tribe pro11 cures gaming materials, supplies, equipment, or

12 services that are used in the conduct of a class

13 II or class III gaming activity; or

14 ‘‘(B) any agreement or contract that pro15 vides for financing of an amount more than

16 $50,000 per year for the construction or reha17 bilitation of any facility in which a gaming ac18 tivity is to be conducted.

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

20 term ‘gaming-related contractor’ means any person

21 who enters into a gaming-related contract with an

22 Indian tribe or an agent of an Indian tribe, includ23 ing any person with a financial interest in such con24 tract.
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1 ‘‘(13) GAMING SERVICE INDUSTRY.—The term

2 ‘gaming service industry’ means any form of enter3 prise that provides goods or services that are used

4 in conjunction with any class II or class III gaming

5 activity, in any case in which—

6 ‘‘(A) the proposed agreement between the

7 enterprise and a class II or class III gaming op8 eration, or the aggregate of such agreements is

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

10 year; or

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

12 such enterprise with any such gaming operation

13 in the 1-year period preceding the effective date

14 of the proposed agreement between the enter15 prise and a class II or class III gaming oper16 ation was not less than $250,000.

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

18 means—

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

21 ‘‘(B) any lands—

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

23 by the United States for the benefit of any

24 Indian tribe; or

25 ‘‘(ii)(I) the title to which is—
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1 ‘‘(aa) held by an Indian tribe

2 subject to a restriction by the United

3 States against alienation;

4 ‘‘(bb) held in trust by the United

5 States for the benefit of an individual

6 Indian; or

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

9 States against alienation; and

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

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

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

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

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

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

20 self-government.

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

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

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

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

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

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

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

12 ‘management contractor’ means any person entering

13 into a management contract with an Indian tribe or

14 an agent of the Indian tribe for the management of

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

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

20 any discretionary decision with regard to matters

21 which have a substantial effect on the financial or

22 management aspects of a gaming operation.

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

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

2 prizes; and

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

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

7 individual, firm, corporation, association, organiza8 tion, partnership, trust, consortium, joint venture, or

9 entity.

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

11 means the Secretary of the Interior.’’;

12 (4) by striking sections 5 through 19 and in13 serting the following new sections:

14 ‘‘SEC. 5. ESTABLISHMENT OF THE FEDERAL INDIAN GAM15 ING REGULATORY COMMISSION.

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

17 independent agency of the United States, a Commission

18 to be known as the Federal Indian Gaming Regulatory

19 Commission. Such Commission shall be an independent es20 tablishment, as defined in section 104 of title 5, United

21 States Code.

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

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

24 composed of 3 full-time members, who shall be ap-
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1 pointed by the President, by and with the advice and

2 consent of the Senate.

3 ‘‘(2) CITIZENSHIP OF MEMBERS.—Each mem4 ber of the Commission shall be a citizen of the Unit5 ed States.

6 ‘‘(3) REQUIREMENTS FOR MEMBERS.—No

7 member of the Commission may—

8 ‘‘(A) pursue any other business or occupa9 tion or hold any other office;

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

11 through distribution of gaming revenues as a

12 member of an Indian tribe, have any pecuniary

13 interest in gaming activities;

14 ‘‘(C) other than through distribution of

15 gaming revenues as a member of an Indian

16 tribe, have any pecuniary interest in any busi17 ness or organization that holds a gaming license

18 under this Act or that does business with any

19 person or organization licensed under this Act;

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

21 gaming offense; or

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

23 management responsibility for, any gaming-re24 lated contract or any other contract approved

25 pursuant to this Act.
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1 ‘‘(4) POLITICAL AFFILIATION.—Not more than

2 2 members of the Commission shall be members of

3 the same political party. In making appointments to

4 the Commission, the President shall appoint mem5 bers of different political parties, to the extent prac6 ticable.

7 ‘‘(5) ADDITIONAL QUALIFICATIONS.—

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

9 be composed of the most qualified individuals

10 available. In making appointments to the Com11 mission, the President shall give special ref12 erence to the training and experience of individ13 uals in the fields of corporate finance, account14 ing, auditing, and investigation or law enforce15 ment.

16 ‘‘(B) TRIBAL GOVERNMENT EXPERI17 ENCE.—Not less than 2 members of the Com18 mission shall be individuals with extensive expe19 rience or expertise in tribal government.

20 ‘‘(6) BACKGROUND INVESTIGATIONS.—The At21 torney General shall conduct a background inves22 tigation concerning any individual under consider23 ation for appointment to the Commission, with par24 ticular regard to the financial stability, integrity, re-
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1 sponsibility, and reputation for good character, hon2 esty, and integrity of the nominee.

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

4 Chairperson from among the members appointed to the

5 Commission.

6 ‘‘(d) VICE CHAIRPERSON.—The Commission shall se7 lect, by majority vote, 1 of the members of the Commission

8 to serve as Vice Chairperson. The Vice Chairperson

9 shall—

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

11 the absence of the Chairperson; and

12 ‘‘(2) exercise such other powers as may be dele13 gated by the Chairperson.

14 ‘‘(e) TERMS OF OFFICE.—

15 ‘‘(1) IN GENERAL.—Each member of the Com16 mission shall hold office for a term of 5 years.

17 ‘‘(2) INITIAL APPOINTMENTS.—Initial appoint18 ments to the Commission shall be made for the fol19 lowing terms:

20 ‘‘(A) The Chairperson shall be appointed

21 for a term of 5 years.

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

23 term of 4 years.

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

25 term of 3 years.
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1 ‘‘(3) LIMITATION.—No member shall serve for

2 more than 2 terms of 5 years each.

3 ‘‘(f) VACANCIES.—

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

5 by the President to serve as Chairperson and each

6 member of the Commission shall, unless removed for

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

8 which such individual is appointed until the expira9 tion of the term of such individual or until a succes10 sor is duly appointed and qualified.

11 ‘‘(2) REMOVAL FROM OFFICE.—The Chair12 person or any member of the Commission may only

13 be removed from office before the expiration of the

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

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

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

17 any member appointed to fill a vacancy on the Com18 mission shall be for the unexpired term of the mem19 ber.

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

21 shall constitute a quorum.

22 ‘‘(h) MEETINGS.—

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

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

25 members of the Commission.
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1 ‘‘(2) MAJORITY OF MEMBERS DETERMINE AC2 TION.—A majority of the members of the Commis3 sion shall determine any action of the Commission.

4 ‘‘(i) COMPENSATION.—

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

6 paid at a rate equal to that of level IV of the Execu7 tive Schedule under section 5316 of title 5, United

8 States Code.

9 ‘‘(2) OTHER MEMBERS.—Each member of the

10 Commission (other than the Chairperson) shall be

11 paid at a rate equal to that of level V of the Execu12 tive Schedule under section 5316 of title 5, United

13 States Code.

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

15 shall be reimbursed in accordance with title 5, Unit16 ed States Code, for travel, subsistence, and other

17 necessary expenses incurred by them in the perform18 ance of their duties.

19 ‘‘(j) ADMINISTRATIVE SUPPORT SERVICES.—The Ad20 ministrator of General Services shall provide to the Com21 mission on a reimbursable basis such administrative sup22 port services as the Commission may request.
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1 ‘‘SEC. 6. POWERS OF THE CHAIRPERSON.

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

3 shall serve as the chief executive officer of the Commis4 sion.

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

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

7 the Chairperson—

8 ‘‘(A) shall employ and supervise such per9 sonnel as the Chairperson considers to be nec10 essary to carry out the functions of the Com11 mission, and assign work among such person12 nel;

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

14 the Commission, who shall be paid at the an15 nual rate of basic pay payable for ES–6 of the

16 Senior Executive Service Schedule under section

17 5382 of title 5, United States Code;

18 ‘‘(C) shall appoint and supervise other

19 staff of the Commission without regard to the

20 provisions of title 5, United States Code, gov21 erning appointments in the competitive service;

22 ‘‘(D) may procure temporary and intermit23 tent services under section 3109(b) of title 5,

24 United States Code, but at rates for individuals

25 not to exceed the daily equivalent of the maxi-
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1 mum annual rate of basic pay payable for ES–

2 6 of the Senior Executive Service Schedule;

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

4 agency to detail any personnel of such agency

5 to the Commission to assist the Commission in

6 carrying out the duties of the Commission

7 under this Act, unless otherwise prohibited by

8 law;

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

10 and funds collected pursuant to section 17; and

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

12 other professional, technical, and operational

13 personnel and consultants as may be necessary

14 for the performance of the Commission’s re15 sponsibilities under this Act.

16 ‘‘(2) COMPENSATION OF STAFF.—The staff re17 ferred to in paragraph (1)(C) shall be paid without

18 regard to the provisions of chapter 51 and sub19 chapters III and VIII of chapter 53 of title 5, Unit20 ed States Code, relating to classification and Gen21 eral Schedule and Senior Executive Service Schedule

22 pay rates, except that no individual so appointed

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

24 pay payable for ES–5 of the Senior Executive Serv-
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1 ice Schedule under section 5382 of title 5, United

2 States Code.

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

4 the functions under this section, the Chairperson shall be

5 governed by the general policies of the Commission and

6 by such regulatory decisions, findings, and determinations

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

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

9 ‘‘(a) GENERAL POWERS.—

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

11 the power to—

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

13 Commission;

14 ‘‘(B) promulgate regulations to carry out

15 this Act;

16 ‘‘(C) establish a rate of fees and assess17 ments, as provided in section 17;

18 ‘‘(D) conduct investigations, including

19 background investigations;

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

21 operation of gaming activities;

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

23 temporary order closing the operation of gam24 ing activities, as provided in section 15;
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1 ‘‘(G) grant, deny, limit, condition, restrict,

2 revoke, or suspend any license issued under any

3 licensing authority conferred upon the Commis4 sion pursuant to this Act or fine any person li5 censed pursuant to this Act for violation of any

6 of the conditions of licensure under this Act;

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

8 which class II or class III gaming is conducted

9 on Indian lands;

10 ‘‘(I) demand access to and inspect, exam11 ine, photocopy, and audit all papers, books, and

12 records of class II and class III gaming activi13 ties conducted on Indian lands and any other

14 matters necessary to carry out the duties of the

15 Commission under this Act;

16 ‘‘(J) use the United States mails in the

17 same manner and under the same conditions as

18 any department or agency of the United States;

19 ‘‘(K) procure supplies, services, and prop20 erty by contract in accordance with applicable

21 Federal laws;

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

23 State, tribal, and private entities for activities

24 necessary to the discharge of the duties of the

25 Commission;
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1 ‘‘(M) serve or cause to be served, process

2 or notices of the Commission in a manner pro3 vided for by the Commission or in a manner

4 provided for the service of process and notice in

5 civil actions in accordance with the applicable

6 rules of a tribal, State, or Federal court;

7 ‘‘(N) propound written interrogatories and

8 appoint hearing examiners, to whom may be

9 delegated the power and authority to administer

10 oaths, issue subpoenas, propound written inter11 rogatories, and require testimony under oath;

12 ‘‘(O) conduct all administrative hearings

13 pertaining to civil violations of this Act (includ14 ing any civil violation of a regulation promul15 gated under this Act);

16 ‘‘(P) collect all fees and assessments au17 thorized by this Act and the regulations pro18 mulgated pursuant to this Act;

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

20 provisions of this Act and the regulations pro21 mulgated pursuant to this Act;

22 ‘‘(R) provide training and technical assist23 ance to Indian tribes with respect to all aspects

24 of the conduct and regulation of gaming activi25 ties;
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1 ‘‘(S) monitor and, as specifically author2 ized by this Act, regulate class II and class III

3 gaming;

4 ‘‘(T) establish precertification criteria that

5 apply to management contractors and other

6 persons having material control over a gaming

7 operation;

8 ‘‘(U) approve all management and gaming9 related contracts; and

10 ‘‘(V) in addition to the authorities other11 wise specified in this Act, delegate, by published

12 order or rule, any of the functions of the Com13 mission (including functions with respect to

14 hearing, determining, ordering, certifying, re15 porting, or otherwise acting on the part of the

16 Commission concerning any work, business, or

17 matter) to a division of the Commission, an in18 dividual member of the Commission, an admin19 istrative law judge, or an employee of the Com20 mission.

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

22 this section may be construed to authorize the dele23 gation of the function of rulemaking, as described in

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

25 Code, with respect to general rules (as distinguished
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1 from rules of particular applicability), or the promul2 gation of any other rule.

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

4 ‘‘(1) IN GENERAL.—With respect to the delega5 tion of any of the functions of the Commission, the

6 Commission shall retain a discretionary right to re7 view the action of any division of the Commission,

8 individual member of the Commission, administra9 tive law judge, or employee of the Commission, upon

10 the initiative of the Commission.

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

12 1 member of the Commission shall be sufficient to

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

14 the Commission for review, and the Commission

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

16 not later than the last day of the applicable period

17 specified in regulations promulgated by the Commis18 sion.

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

20 Commission declines to exercise the right to a review

21 described in paragraph (1) or fails to exercise that

22 right within the applicable period specified in regula23 tions promulgated by the Commission, the action of

24 any such division of the Commission, individual

25 member of the Commission, administrative law
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1 judge, or employee, shall, for all purposes, including

2 any appeal or review of such action, be deemed an

3 action of the Commission.

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

5 procedures described in section 9(d), after receiving rec6 ommendations from the Advisory Committee, the Commis7 sion shall establish minimum Federal standards—

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

9 persons, and licensing of gaming operations associ10 ated with the conduct or regulation of class II and

11 class III gaming on Indian lands by tribal govern12 ments; and

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

14 gaming activities on Indian lands, including—

15 ‘‘(A) surveillance and security personnel

16 and systems capable of monitoring all gaming

17 activities, including the conduct of games, cash18 iers’ cages, change booths, count rooms, move19 ments of cash and chips, entrances and exits to

20 gaming facilities, and other critical areas of any

21 gaming facility;

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

23 integrity of the rules for the play of games and

24 controls related to such rules;

25 ‘‘(C) credit and debit collection controls;
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1 ‘‘(D) controls over gambling devices and

2 equipment; and

3 ‘‘(E) accounting and auditing.

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

5 ‘‘(1) IN GENERAL.—The Commission may se6 cure from any department or agency of the United

7 States information necessary to enable the Commis8 sion to carry out this Act. Unless otherwise prohib9 ited by law, upon request of the Chairperson, the

10 head of such department or agency shall furnish

11 such information to the Commission.

12 ‘‘(2) INFORMATION TRANSFER.—The Commis13 sion may secure from any law enforcement agency or

14 gaming regulatory agency of any State, Indian tribe,

15 or foreign nation information necessary to enable the

16 Commission to carry out this Act. Unless otherwise

17 prohibited by law, upon request of the Chairperson,

18 the head of any State or tribal law enforcement

19 agency shall furnish such information to the Com20 mission.

21 ‘‘(3) PRIVILEGED INFORMATION.—Notwith22 standing sections 552 and 552a of title 5, United

23 States Code, the Commission shall protect from dis24 closure information provided by Federal, State, trib-
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1 al, or international law enforcement or gaming regu2 latory agencies.

3 ‘‘(4) LAW ENFORCEMENT AGENCY.—For pur4 poses of this subsection, the Commission shall be

5 considered to be a law enforcement agency.

6 ‘‘(e) INVESTIGATIONS AND ACTIONS.—

7 ‘‘(1) IN GENERAL.—

8 ‘‘(A) POSSIBLE VIOLATIONS.—The Com9 mission may, at the discretion of the Commis10 sion, and as specifically authorized by this Act,

11 conduct such investigations as the Commission

12 considers necessary to determine whether any

13 person has violated, is violating, or is conspiring

14 to violate any provision of this Act (including

15 any rule or regulation promulgated under this

16 Act). The Commission may require or permit

17 any person to file with the Commission a state18 ment in writing, under oath, or otherwise as the

19 Commission may determine, concerning all rel20 evant facts and circumstances regarding the

21 matter under investigation by the Commission

22 pursuant to this subsection.

23 ‘‘(B) ADMINISTRATIVE INVESTIGATIONS.—

24 The Commission may, at the discretion of the

25 Commission, and as specifically authorized by
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1 this Act, investigate such facts, conditions,

2 practices, or matters as the Commission consid3 ers necessary or proper to aid in—

4 ‘‘(i) the enforcement of any provision

5 of this Act;

6 ‘‘(ii) prescribing rules and regulations

7 under this Act; or

8 ‘‘(iii) securing information to serve as

9 a basis for recommending further legisla10 tion concerning the matters to which this

11 Act relates.

12 ‘‘(2) ADMINISTRATIVE AUTHORITIES.—

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

14 any investigation or any other proceeding con15 ducted under this Act, any member of the Com16 mission or any officer designated by the Com17 mission is empowered to administer oaths and

18 affirmations, subpoena witnesses, compel their

19 attendance, take evidence, and require the pro20 duction of any books, papers, correspondence,

21 memoranda, or other records that the Commis22 sion considers relevant or material to the in23 quiry. The attendance of such witnesses and the

24 production of any such records may be required
28

•S 1077 IS

1 from any place in the United States at any des2 ignated place of hearing.

3 ‘‘(B) REQUIRING APPEARANCES OR TESTI4 MONY.—In case of contumacy by, or refusal to

5 obey any subpoena issued to, any person, the

6 Commission may invoke the jurisdiction of any

7 court of the United States within the jurisdic8 tion of which an investigation or proceeding is

9 carried on, or where such person resides or car10 ries on business, in requiring the attendance

11 and testimony of witnesses and the production

12 of books, papers, correspondence, memoranda,

13 and other records.

14 ‘‘(C) COURT ORDERS.—Any court de15 scribed in subparagraph (B) may issue an order

16 requiring such person to appear before the

17 Commission or member of the Commission or

18 officer designated by the Commission, there to

19 produce records, if so ordered, or to give testi20 mony touching the matter under investigation

21 or in question, and any failure to obey such

22 order of the court may be punished by such

23 court as a contempt of such court.

24 ‘‘(3) ENFORCEMENT.—
29

•S 1077 IS

1 ‘‘(A) IN GENERAL.—If the Commission de2 termines that any person is engaged, has en3 gaged, or is conspiring to engage, in any act or

4 practice constituting a violation of any provision

5 of this Act (including any rule or regulation

6 promulgated under this Act), the Commission

7 may—

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

9 district court of the United States or the

10 United States District Court for the Dis11 trict of Columbia to enjoin such act or

12 practice, and upon a proper showing, the

13 court shall grant, without bond, a perma14 nent or temporary injunction or restraining

15 order; or

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

17 available concerning such act or practice as

18 may constitute a violation of any Federal

19 criminal law to the Attorney General, who

20 may institute the necessary criminal or

21 civil proceedings.

22 ‘‘(B) STATUTORY CONSTRUCTION.—

23 ‘‘(i) IN GENERAL.—The authority of

24 the Commission to conduct investigations

25 and take actions under subparagraph (A)
30

•S 1077 IS

1 may not be construed to affect in any way

2 the authority of any other agency or de3 partment of the United States to carry out

4 statutory responsibilities of such agency or

5 department.

6 ‘‘(ii) EFFECT OF TRANSMITTAL BY

7 THE COMMISSION.—The transmittal by the

8 Commission of evidence pursuant to sub9 paragraph (A)(ii) may not be construed to

10 constitute a condition precedent with re11 spect to any action taken by any depart12 ment or agency referred to in clause (i).

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

14 Upon application of the Commission, each district

15 court of the United States shall have jurisdiction to

16 issue writs of mandamus, injunctions, and orders

17 commanding any person to comply with the provi18 sions of this Act (including any rule or regulation

19 promulgated under this Act).

20 ‘‘SEC. 8. REGULATORY FRAMEWORK.

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

22 tribes shall retain the exclusive right of those tribes to,

23 if the exercise of that right is made in a manner that

24 meets or exceeds minimum Federal standards established

25 by the Commission pursuant to section 7(c)—
31

•S 1077 IS

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

2 ‘‘(2) conduct background investigations and

3 issue licenses to persons who are required to obtain

4 a license under section 10(a).

5 ‘‘(b) CLASS III GAMING CONDUCTED UNDER A COM6 PACT.—For class III gaming conducted under the author7 ity of a compact entered into pursuant to section 12, an

8 Indian tribe or a State, or both, as provided in a compact

9 or by tribal ordinance or resolution, shall, in a manner

10 that meets or exceeds minimum Federal standards estab11 lished by the Commission pursuant to section 7(c)—

12 ‘‘(1) monitor and regulate gaming;

13 ‘‘(2) conduct background investigations and

14 issue licenses to persons who are required to obtain

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

16 ‘‘(3) establish and regulate internal control sys17 tems.

18 ‘‘(c) VIOLATIONS OF MINIMUM FEDERAL STAND19 ARDS.—

20 ‘‘(1) CLASS II GAMING.—

21 ‘‘(A) IN GENERAL.—In any case in which

22 an Indian tribe that regulates or conducts class

23 II gaming on Indian lands substantially fails to

24 meet or enforce minimum Federal standards for

25 that gaming, after providing the Indian tribe
32

•S 1077 IS

1 notice and reasonable opportunity to cure viola2 tions and to be heard, and after the exhaustion

3 of other authorized remedies and sanctions, the

4 Commission shall have the authority to conduct

5 background investigations, issue licenses, and

6 establish and regulate internal control systems

7 relating to class II gaming conducted by the In8 dian tribe.

9 ‘‘(B) EXERCISE OF EXCLUSIVE AUTHOR10 ITY.—The Commission may excercise exclusive

11 authority in carrying out the activities specified

12 in subparagraph (A) until such time as the reg13 ulatory and internal control systems of the In14 dian tribe meet or exceed the minimum Federal

15 standards concerning regulatory, licensing, or

16 internal control requirements established by the

17 Commission for that gaming.

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 on Indian lands fails to meet or en21 force minimum Federal standards for class III gam22 ing, after providing notice and reasonable oppor23 tunity to cure violations and be heard, and after the

24 exhaustion of other authorized remedies and sanc25 tions, the Commission shall have the authority to
33

•S 1077 IS

1 conduct background investigations, issue licenses,

2 and establish and regulate internal control systems

3 relating to class III gaming conducted by the Indian

4 tribe. That authority of the Commission may be ex5 clusive until such time as the regulatory or internal

6 control systems of the Indian tribe or the State (or

7 both) meet or exceed the minimum Federal regu8 latory, licensing, or internal control requirements es9 tablished by the Commission for that gaming.

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

11 REQUIREMENTS AND LICENSING STAND12 ARDS.

13 ‘‘(a) ESTABLISHMENT.—The President shall estab14 lish an advisory committee to be known as the ‘Advisory

15 Committee on Minimum Regulatory Requirements and Li16 censing Standards’.

17 ‘‘(b) MEMBERS.—

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

19 shall be composed of 8 members who shall be ap20 pointed by the President not later than 120 days

21 after the date of enactment of the Indian Gaming

22 Regulatory Act Amendments Act of 1997, of

23 which—

24 ‘‘(A) 3 members, selected from a list of

25 recommendations submitted to the President by
34

•S 1077 IS

1 the Chairperson and Vice Chairperson of the

2 Committee on Indian Affairs of the Senate and

3 the Chairperson and ranking minority member

4 of the Subcommittee on Native American and

5 Insular Affairs of the Committee on Resources

6 of the House of Representatives, shall be mem7 bers of, and represent, Indian tribal govern8 ments involved in gaming covered under this

9 Act;

10 ‘‘(B) 3 members, selected from a list of

11 recommendations submitted to the President by

12 the Majority Leader and the Minority Leader of

13 the Senate and the Speaker and the Minority

14 Leader of the House of Representatives, shall

15 represent State governments involved in gaming

16 covered under this Act, and shall have experi17 ence as State gaming regulators; and

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

19 of the Department of Justice.

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

21 Committee shall not affect its powers, but shall be

22 filled in the same manner as the original appoint23 ment.

24 ‘‘(c) RECOMMENDATIONS FOR MINIMUM FEDERAL

25 STANDARDS.—
35

•S 1077 IS

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

2 after the date on which all initial members of the

3 Advisory Committee have been appointed under sub4 section (b), the Advisory Committee shall develop

5 and submit to the entities referred to in paragraph

6 (2) recommendations for minimum Federal stand7 ards relating to background investigations, internal

8 control systems, and licensing standards (as de9 scribed in section 7(c)).

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

11 Advisory Committee shall submit the recommenda12 tions described in paragraph (1) to the Committee

13 on Indian Affairs of the Senate, the Subcommittee

14 on Native American and Insular Affairs of the Com15 mittee on Resources of the House of Representa16 tives, the Commission, and to each federally recog17 nized Indian tribe.

18 ‘‘(3) FACTORS FOR CONSIDERATION.—The min19 imum Federal standards recommended or estab20 lished pursuant to this section may be developed

21 taking into account for industry standards existing

22 at the time of the development of the standards. The

23 Advisory Committee, and the Commission in promul24 gating standards pursuant to subsection (d), shall,
36

•S 1077 IS

1 in addition to considering any other factor that the

2 Commission considers to be appropriate, consider—

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

4 compared to non-Indian commercial, govern5 mental, and charitable gaming;

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

7 size of tribal gaming activity;

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

9 tribes to regulate their own affairs; and

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

11 sections 2 and 3.

12 ‘‘(d) REGULATIONS.—Upon receipt of the rec13 ommendations of the Advisory Committee, the Commis14 sion shall hold public hearings on the recommendations.

15 After the conclusion of the hearings, the Commission shall

16 promulgate regulations establishing minimum Federal

17 regulatory requirements and licensing standards.

18 ‘‘(e) TRAVEL.—Each member of the Advisory Com19 mittee who is appointed under subparagraph (A) or (B)

20 of subsection (b)(1) and who is not an officer or employee

21 of the Federal Government or a government of a State

22 shall be reimbursed for travel and per diem in lieu of sub23 sistence expenses during the performance of duties of the

24 Advisory Committee while away from the home or the reg-
37

•S 1077 IS

1 ular place of business of that member, in accordance with

2 subchapter I of chapter 57 of title 5, United States Code.

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

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

5 on which the Advisory Committee submits the rec6 ommendations under subsection (c).

7 ‘‘(g) EXEMPTION FROM FEDERAL ADVISORY COM8 MITTEE ACT.—All activities of the Advisory Committee

9 shall be exempt from the Federal Advisory Committee Act

10 (5 U.S.C. App.).

11 ‘‘SEC. 10. LICENSING.

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

13 shall be required of—

14 ‘‘(1) a gaming operation;

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

16 ‘‘(3) a management contractor or gaming-relat17 ed contractor;

18 ‘‘(4) a gaming service industry; or

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

20 directly or indirectly, over a licensed gaming oper21 ation.

22 ‘‘(b) CERTAIN LICENSES FOR MANAGEMENT CON23 TRACTORS AND GAMING OPERATIONS.—Notwithstanding

24 any other provision of law relating to licenses issued by
38

•S 1077 IS

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

2 the Commission may require licenses of—

3 ‘‘(1) management contractors; and

4 ‘‘(2) gaming operations.

5 ‘‘(c) GAMING OPERATION LICENSE.—

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

7 operate unless all required licenses and approvals for

8 the gaming operation have been obtained in accord9 ance with this Act.

10 ‘‘(2) WRITTEN AGREEMENTS.—

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

12 any gaming facility or activity, each manage13 ment contract for the gaming operation shall be

14 in writing and filed with the Commission pursu15 ant to section 13.

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

17 management contract referred to in subpara18 graph (A) shall be effective unless the Commis19 sion expressly approves the management con20 tract.

21 ‘‘(C) REQUIREMENT OF ADDITIONAL PRO22 VISIONS.—The Commission may require that a

23 management contract referred to in subpara24 graph (A) include any provisions that are rea-
39

•S 1077 IS

1 sonably necessary to meet the requirements of

2 this Act.

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

4 Commission may, with respect to an applicant

5 who does not have the ability to exercise any

6 significant control over a licensed gaming oper7 ation—

8 ‘‘(i) determine that applicant to be in9 eligible to hold a license; or

10 ‘‘(ii) exempt that applicant from being

11 required to hold a license.

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

13 exercise of the specific licensure power conferred upon the

14 Commission by this Act, shall deny a license to any appli15 cant who is disqualified on the basis of a failure to meet

16 any of the minimum Federal standards promulgated by

17 the Commission pursuant to section 7(c).

18 ‘‘(e) APPLICATION FOR LICENSE.—

19 ‘‘(1) IN GENERAL.—Upon the filing of the ma20 terials specified in paragraph (2), the Commission

21 shall conduct an investigation into the qualifications

22 of an applicant. The Commission may conduct a

23 nonpublic hearing on such investigation concerning

24 the qualifications of the applicant in accordance with

25 regulations promulgated by the Commission.
40

•S 1077 IS

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

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

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

4 Commission is specifically authorized to issue

5 pursuant to this Act; and

6 ‘‘(B) such supplemental information as the

7 Commission may require.

8 ‘‘(3) TIMING OF HEARINGS AND INVESTIGA9 TIONS AND FINAL ACTION.—

10 ‘‘(A) DEADLINE FOR HEARINGS AND IN11 VESTIGATIONS.—Not later than 90 days after

12 receiving the materials described in paragraph

13 (2), the Commission shall complete the inves14 tigation described in paragraph (1) and any

15 hearings associated with the investigation con16 ducted pursuant to that paragraph.

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

18 later than 10 days after the date specified in

19 subparagraph (A), the Commission shall take

20 final action to grant or deny a license to the ap21 plicant.

22 ‘‘(4) DENIALS.—

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

24 disapprove an application submitted to the
41

•S 1077 IS

1 Commission under this section and deny a li2 cense to the applicant.

3 ‘‘(B) ORDER OF DENIAL.—If the Commis4 sion denies a license to an applicant under sub5 paragraph (A), the Commission shall prepare

6 an order denying such license. In addition, if an

7 applicant requests a statement of the reasons

8 for the denial, the Commission shall prepare

9 such statement and provide the statement to

10 the applicant. The statement shall include spe11 cific findings of fact.

12 ‘‘(5) ISSUANCE OF LICENSES.—If the Commis13 sion is satisfied that an applicant is qualified to re14 ceive a license, the Commission shall issue a license

15 to the applicant upon tender of—

16 ‘‘(A) all license fees and assessments as re17 quired by this Act (including any rule or regula18 tion promulgated under this Act); and

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

20 require for the faithful performance of all re21 quirements imposed by this Act (including any

22 rule or regulation promulgated under this Act).

23 ‘‘(6) BONDS.—

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

25 by rules of uniform application, fix the amount
42

•S 1077 IS

1 of each bond that the Commission requires

2 under this section in such amount as the Com3 mission considers appropriate.

4 ‘‘(B) USE OF BONDS.—The bonds fur5 nished to the Commission under this paragraph

6 may be applied by the Commission to the pay7 ment of any unpaid liability of the licensee

8 under this Act.

9 ‘‘(C) TERMS.—Each bond required in ac10 cordance with this section shall be furnished—

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

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

13 a satisfactory guarantor; or

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

15 issued by a banking institution acceptable

16 to the Commission.

17 ‘‘(D) TREATMENT OF PRINCIPAL AND IN18 COME.—If a bond is furnished under this para19 graph in cash or negotiable securities, the prin20 cipal shall be placed without restriction at the

21 disposal of the Commission, but any income

22 shall inure to the benefit of the licensee.

23 ‘‘(f) RENEWAL OF LICENSE.—

24 ‘‘(1) IN GENERAL.—
43

•S 1077 IS

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

2 the Commission to deny, revoke, or suspend li3 censes, any license issued under this section

4 and in force shall be renewed by the Commis5 sion for the next succeeding license period upon

6 proper application for renewal and payment of

7 license fees and assessments, as required by ap8 plicable law (including any rule or regulation

9 promulgated under this Act).

10 ‘‘(B) RENEWAL TERM.—Subject to sub11 paragraph (C), the term of a renewal period for

12 a license issued under this section shall be for

13 a period of not more than—

14 ‘‘(i) 2 years, for each of the first 2 re15 newal periods succeeding the initial issu16 ance of a license pursuant to subsection

17 (e); and

18 ‘‘(ii) 3 years, for each succeeding re19 newal period.

20 ‘‘(C) REOPENING HEARINGS.—The Com21 mission may reopen licensing hearings at any

22 time after the Commission has issued or re23 newed a license.

24 ‘‘(2) TRANSITION.—
44

•S 1077 IS

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

2 other provision of this subsection, the Commis3 sion shall, for the purpose of facilitating the ad4 ministration of this Act, renew a license for an

5 activity covered under subsection (a) that is

6 held by a person on the date of enactment of

7 the Indian Gaming Regulatory Act Amend8 ments Act of 1997 for a renewal period of 18

9 months.

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

11 Commission shall act upon a timely filed license

12 renewal application prior to the date of expira13 tion of the then current license.

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

15 for renewal shall be filed with the Commission not

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

17 current license, and shall be accompanied by full

18 payment of all license fees and assessments that are

19 required by law to be paid to the Commission.

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

21 of a license, the Commission shall issue an appro22 priate renewal certificate, validating device, or stick23 er, which shall be attached to the license.

24 ‘‘(g) HEARINGS.—
45

•S 1077 IS

1 ‘‘(1) IN GENERAL.—The Commission shall es2 tablish procedures for the conduct of hearings asso3 ciated with licensing, including procedures for issu4 ing, denying, limiting, conditioning, restricting, re5 voking, or suspending any such license.

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

7 hearing conducted for any of the purposes author8 ized in this section, the Commission shall—

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

10 ‘‘(B) issue an order; and

11 ‘‘(C) serve the decision referred to in sub12 paragraph (A) and order referred to in sub13 paragraph (B) upon the affected parties.

14 ‘‘(3) REHEARING.—

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

16 upon a motion made not later than 10 days

17 after the service of a decision and order, order

18 a rehearing before the Commission on such

19 terms and conditions as the Commission consid20 ers just and proper if the Commission finds

21 cause to believe that the decision and order

22 should be reconsidered in view of the legal, pol23 icy, or factual matters that are—

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

25 the motion; or
46

•S 1077 IS

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

2 motion made by the Commission.

3 ‘‘(B) ACTION AFTER REHEARING.—Follow4 ing a rehearing conducted by the Commission,

5 the Commission shall—

6 ‘‘(i) render a decision of the Commis7 sion;

8 ‘‘(ii) issue an order; and

9 ‘‘(iii) serve such decision and order

10 upon the affected parties.

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

12 and order made by the Commission under para13 graph (2) (if no motion for a rehearing is made

14 by the date specified in subparagraph (A)), or

15 a decision and order made by the Commission

16 upon rehearing shall constitute final agency ac17 tion for purposes of judicial review.

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

19 of Appeals for the District of Columbia Circuit shall

20 have jurisdiction to review the licensing decisions

21 and orders of the Commission.

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

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

24 granted or denied pursuant to this Act; and
47

•S 1077 IS

1 ‘‘(2) make the information contained in the reg2 istry available to Indian tribes to assist the licensure

3 and regulatory activities of Indian tribes.

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

5 AND CLASS II GAMING ON INDIAN LANDS.

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

7 lands shall be within the exclusive jurisdiction of the In8 dian tribes and shall not be subject to the provisions of

9 this Act.

10 ‘‘(b) CLASS II GAMING.—

11 ‘‘(1) IN GENERAL.—Any class II gaming on In12 dian lands shall be within the jurisdiction of the In13 dian tribes, but shall be subject to the provisions of

14 this Act.

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

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

17 on Indian lands within the jurisdiction of such tribe,

18 if—

19 ‘‘(A) that Indian gaming is located within

20 a State that permits that gaming for any pur21 pose by any person; and

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

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

24 10.
48

•S 1077 IS

1 ‘‘(3) REQUIREMENTS FOR CLASS II GAMING OP2 ERATIONS.—

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

4 ensure that, with regard to any class II gaming

5 operation on Indian lands—

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

7 Indian tribe for each place, facility, or lo8 cation on Indian lands at which class II

9 gaming is conducted;

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

11 the sole proprietary interest and respon12 sibility for the conduct of any class II gam13 ing activity, unless the conditions of clause

14 (ix) apply;

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

16 II gaming activity are used only—

17 ‘‘(I) to fund tribal government

18 operations or programs;

19 ‘‘(II) to provide for the general

20 welfare of the Indian tribe and the

21 members of the Indian tribe;

22 ‘‘(III) to promote tribal economic

23 development;

24 ‘‘(IV) to donate to charitable or25 ganizations;
49

•S 1077 IS

1 ‘‘(V) to assist in funding oper2 ations of local government agencies;

3 ‘‘(VI) to comply with the provi4 sions of section 17; or

5 ‘‘(VIII) to make per capita pay6 ments to members of the Indian tribe

7 pursuant to clause (viii);

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

9 Commission annual outside audit reports

10 of the class II gaming operation of the In11 dian tribe, which may be encompassed

12 within existing independent tribal audit

13 systems;

14 ‘‘(v) each contract for supplies, serv15 ices, or concessions for a contract amount

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

17 other than a contract for professional legal

18 or accounting services, relating to such

19 gaming is subject to such independent

20 audit reports and any audit conducted by

21 the Commission;

22 ‘‘(vi) the construction and mainte23 nance of a class II gaming facility and the

24 operation of class II gaming are conducted
50

•S 1077 IS

1 in a manner that adequately protects the

2 environment and public health and safety;

3 ‘‘(vii) there is instituted an adequate

4 system that—

5 ‘‘(I) ensures that—

6 ‘‘(aa) background investiga7 tions are conducted on primary

8 management officials, key em9 ployees, and persons having ma10 terial control, either directly or

11 indirectly, in a licensed class II

12 gaming operation, and gaming13 related contractors associated

14 with a licensed class II gaming

15 operation; and

16 ‘‘(bb) oversight of the offi17 cials referred to in item (aa) and

18 the management by those offi19 cials is conducted on an ongoing

20 basis; and

21 ‘‘(II) includes—

22 ‘‘(aa) tribal licenses for per23 sons involved in class II gaming

24 operations, issued in accordance

25 with sections 7(c) and 10;
51

•S 1077 IS

1 ‘‘(bb) a standard whereby

2 any person whose prior activities,

3 criminal record, if any, or reputa4 tion, habits, and associations

5 pose a threat to the public inter6 est or to the effective regulation

7 of gaming, or create or enhance

8 the dangers of unsuitable, unfair,

9 or illegal practices and methods

10 and activities in the conduct of

11 gaming shall not be eligible for

12 employment or licensure; and

13 ‘‘(cc) notification by the In14 dian tribe to the Commission of

15 the results of a background in16 vestigation conducted under item

17 (bb) before the issuance of any

18 such license;

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

20 gaming activities conducted or licensed by

21 any Indian tribal government are used to

22 make per capita payments to members of

23 the Indian tribe only if—
52

•S 1077 IS

1 ‘‘(I) the Indian tribe has pre2 pared a plan to allocate revenues to

3 uses authorized by clause (iii);

4 ‘‘(II) the Secretary determines

5 that the plan is adequate, particularly

6 with respect to uses described in sub7 clause (I) or (III) of clause (iii);

8 ‘‘(III) the interests of minors and

9 other legally incompetent persons who

10 are entitled to receive any of the per

11 capita payments are protected and

12 preserved;

13 ‘‘(IV) the per capita payments to

14 minors and other legally incompetent

15 persons are disbursed to the parents

16 or legal guardians of the minors or le17 gally incompetent persons referred to

18 in subclause (III) in such amounts as

19 may be necessary for the health, edu20 cation, or welfare of each such minor

21 or legally incompetent person under a

22 plan approved by the Secretary and

23 the governing body of the Indian

24 tribe; and
53

•S 1077 IS

1 ‘‘(V) the per capita payments are

2 subject to Federal income taxation

3 and Indian tribes withhold such taxes

4 when such payments are made;

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

6 the Indian tribe for any class II gaming

7 operation owned by any person or entity

8 other than the Indian tribe and conducted

9 on Indian 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

21 the Indian tribe, is eligible to receive a

22 tribal license for a class II gaming oper23 ation conducted on Indian lands within the

24 jurisdiction of the Indian tribe if that per25 son or entity would not be eligible to re-
54

•S 1077 IS

1 ceive a State license to conduct the same

2 activity 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) that 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

19 operation is income to the licensing

20 Indian tribe; and

21 ‘‘(IV) the owner of that gaming

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

24 section 17 for the regulation of that

25 gaming.
55

•S 1077 IS

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 that gaming operation

8 was actually operated on October 17,

9 1988.

10 ‘‘(C) LIST.—The Commission shall—

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

12 operation that is subject to subparagraph

13 (B); and

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

15 Register.

16 ‘‘(c) PETITION FOR CERTIFICATE OF SELF-REGULA17 TION.—

18 ‘‘(1) IN GENERAL.—Any Indian tribe that oper19 ates, directly or with a management contract, a class

20 II gaming activity may petition the Commission for

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

22 ‘‘(A) has continuously conducted such ac23 tivity for a period of not less than 3 years, in24 cluding a period of not less than 1 year that be25 gins after the date of enactment of the Indian
56

•S 1077 IS

1 Gaming Regulatory Act Amendments Act of

2 1997; and

3 ‘‘(B) has otherwise complied with the pro4 visions of this Act.

5 ‘‘(2) ISSUANCE OF CERTIFICATE OF SELF-REG6 ULATION.—The Commission shall issue a certificate

7 of self-regulation under this subsection if the Com8 mission determines, on the basis of available infor9 mation, and after a hearing if requested by the In10 dian tribe, that the Indian tribe has—

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

12 manner which has—

13 ‘‘(i) resulted in an effective and hon14 est 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

19 of criminal or dishonest activity;

20 ‘‘(B) adopted and implemented adequate

21 systems for—

22 ‘‘(i) accounting for all revenues from

23 the gaming activity;
57

•S 1077 IS

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 subsection is in ef15 fect with respect to a gaming activity conducted by

16 an Indian tribe—

17 ‘‘(A) the Indian tribe shall—

18 ‘‘(i) submit an annual independent

19 audit report required under 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 Indian tribe subsequent to

24 the issuance of a certificate of self-regula25 tion; and
58

•S 1077 IS

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

2 under section 17 on gaming operated by the In3 dian tribe pursuant to paragraph (1) in excess

of 1 4 ⁄4 of 1 percent of the net revenue from that

5 activity.

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

7 just cause and after a reasonable opportunity for a

8 hearing, rescind a certificate of self-regulation issued

9 under this subsection by majority vote of the mem10 bers of the Commission.

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

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

13 Indian tribe receives reliable information from the Com14 mission indicating that a licensee does not meet any stand15 ard established under section 7(c) or 10, or any other ap16 plicable regulation promulgated under this Act, the Indian

17 tribe—

18 ‘‘(1) shall immediately suspend that license; and

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

20 and making findings of fact under procedures estab21 lished pursuant to applicable tribal law, may revoke

22 that license.

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

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

25 III GAMING ON INDIAN LANDS.—
59

•S 1077 IS

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

2 shall be lawful on Indian lands only if those activi3 ties 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

8 Indian tribe having jurisdiction over

9 those lands;

10 ‘‘(II) meets the requirements of

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

12 class 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 that

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
60

•S 1077 IS

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 those lands are located to enter

9 into negotiations for the purpose of entering

10 into a compact governing the conduct of gaming

11 activities. Upon receiving such a request, the

12 State shall negotiate with the Indian tribe in

13 good faith to enter into such a compact.

14 ‘‘(B) APPROVAL BY THE SECRETARY.—

15 Any State and any Indian tribe may enter into

16 a compact governing class III gaming activities

17 on the Indian lands of the Indian tribe, but

18 that compact shall take effect only when notice

19 of approval by the Secretary of that compact

20 has been published by the Secretary in the Fed21 eral Register.

22 ‘‘(3) ACTIONS.—

23 ‘‘(A) IN GENERAL.—The United States

24 district courts shall have jurisdiction over—
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•S 1077 IS

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

5 into a compact under paragraph (2) or to

6 conduct 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

15 prescribed 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

21 the date on which the Indian tribe requests

22 the State to enter into negotiations under

23 paragraph (2)(A).

24 ‘‘(ii) BURDEN OF PROOF.—In any ac25 tion described in subparagraph (A)(i),
62

•S 1077 IS

1 upon introduction of evidence by an Indian

2 tribe that—

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

5 ‘‘(II) the State did not respond

6 to the request of the Indian tribe to

7 negotiate such a compact or did not

8 respond 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

12 a compact governing the conduct of gam13 ing 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

18 Indian tribe to conclude a compact govern19 ing the conduct of gaming activities, the

20 court shall order the State and the Indian

21 tribe to conclude such a compact within a

22 60-day period beginning on the date of

23 that order. In determining in such an ac24 tion whether a State has negotiated in

25 good faith, the court—
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•S 1077 IS

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 gam15 ing activities on the Indian lands subject to

16 the jurisdiction of such Indian tribe within

17 the 60-day period provided in the order of

18 a court issued under clause (iii), the In19 dian tribe and the State shall each submit

20 to a mediator appointed by the court a

21 proposed compact that represents the last

22 best offer of the Indian tribe and the State

23 for a compact. The mediator shall select

24 from the 2 proposed compacts the pro25 posed compact that best comports with—
64

•S 1077 IS

1 ‘‘(I) the terms of this Act;

2 ‘‘(II) any other applicable Fed3 eral law; and

4 ‘‘(III) the findings and order of

5 the court.

6 ‘‘(v) SUBMISSION OF COMPACT TO

7 STATE AND INDIAN TRIBE.—The mediator

8 appointed under clause (iv) shall submit to

9 the State and the Indian tribe the pro10 posed compact selected by the mediator

11 under clause (iv).

12 ‘‘(vi) CONSENT OF STATE.—If a State

13 consents to a proposed compact submitted

14 to the State under clause (v) during the

15 60-day period beginning on the date on

16 which the proposed compact is submitted

17 to the State under clause (v), the proposed

18 compact shall be treated as a compact en19 tered into under paragraph (2).

20 ‘‘(vii) FAILURE OF STATE TO CON21 SENT.—If the State does not consent dur22 ing the 60-day period described in clause

23 (vi) to a proposed compact submitted by a

24 mediator under clause (v), the mediator

25 shall notify the Secretary and the Sec-
65

•S 1077 IS

1 retary shall prescribe, in consultation with

2 the Indian tribe, procedures—

3 ‘‘(I) that are consistent with the

4 proposed compact selected by the me5 diator under clause (iv), the provisions

6 of this Act, and the applicable provi7 sions of the laws of the State; and

8 ‘‘(II) under which class III gam9 ing may be conducted on the Indian

10 lands over which the Indian tribe has

11 jurisdiction.

12 ‘‘(4) APPROVAL BY SECRETARY.—

13 ‘‘(A) IN GENERAL.—The Secretary is au14 thorized to approve any compact entered into

15 between an Indian tribe and a State governing

16 gaming on Indian lands of such Indian tribe.

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

18 Secretary may disapprove a compact described

19 in subparagraph (A) only if such compact vio20 lates—

21 ‘‘(i) any provision of this Act;

22 ‘‘(ii) any other provision of Federal

23 law that does not relate to jurisdiction over

24 gaming on Indian lands; or
66

•S 1077 IS

1 ‘‘(iii) the trust obligation of the Unit2 ed States to Indians.

3 ‘‘(C) FAILURE OF THE SECRETARY TO

4 TAKE FINAL ACTION.—If the Secretary does not

5 approve or disapprove a compact described in

6 subparagraph (A) before the expiration of the

7 45-day period beginning on the date on which

8 the compact is submitted to the Secretary for

9 approval, the compact shall be considered to

10 have been approved by the Secretary, but only

11 to the extent the compact is consistent with the

12 provisions of this Act.

13 ‘‘(D) PUBLICATION OF NOTICE.—The Sec14 retary shall publish in the Federal Register no15 tice of any compact that is approved, or consid16 ered to have been approved, under this para17 graph.

18 ‘‘(E) EFFECT OF PUBLICATION OF COM19 PACT.—Except for an appeal conducted under

20 subchapter II of chapter 5 of title 5, United

21 States Code, by an Indian tribe or by a State

22 associated with the publication of the compact,

23 the publication of a compact pursuant to sub24 paragraph (D) or subsection (c)(4) that permits

25 a form of class III gaming shall, for purposes
67

•S 1077 IS

1 of this Act, be conclusive evidence that such

2 class III gaming is an activity subject to nego3 tiations under the laws of the State where the

4 gaming is to be conducted, in any matter under

5 consideration by the Commission or a Federal

6 court.

7 ‘‘(F) EFFECTIVE DATE OF COMPACT.—A

8 compact shall become effective upon the publi9 cation of the compact in the Federal Register

10 by the Secretary.

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

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

13 the Commission shall monitor and, if specifi14 cally authorized, regulate and license class III

15 gaming with respect to any compact that is

16 published in the Federal Register.

17 ‘‘(5) PROVISIONS OF COMPACTS.—

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

19 under this subsection may include provisions re20 lating to—

21 ‘‘(i) the application of the criminal

22 and civil laws (including any rule or regu23 lation) of the Indian tribe or the State that

24 are directly related to, and necessary for,

25 the licensing and regulation of such activ-
68

•S 1077 IS

1 ity in a manner consistent with sections

2 7(c), 8, and 10;

3 ‘‘(ii) the allocation of criminal and

4 civil jurisdiction between the State and the

5 Indian tribe necessary for the enforcement

6 of such laws (including any rule or regula7 tion);

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

9 the costs associated with such activities in

10 such amounts as are necessary to defray

11 the costs of regulating such activity;

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

13 such activity in amounts comparable to

14 amounts assessed by the State for com15 parable activities;

16 ‘‘(v) remedies for breach of compact

17 provisions;

18 ‘‘(vi) standards for the operation of

19 such activity and maintenance of the gam20 ing facility, including licensing, in a man21 ner consistent with sections 7(c), 8, and

22 10; and

23 ‘‘(vii) any other subject that is di24 rectly related to the operation of gaming
69

•S 1077 IS

1 activities and the impact of gaming on

2 tribal, State, and local governments.

3 ‘‘(B) STATUTORY CONSTRUCTION WITH

4 RESPECT TO ASSESSMENTS.—Except for any

5 assessments for services agreed to by an Indian

6 tribe in compact negotiations, nothing in this

7 section may be construed as conferring upon a

8 State or any political subdivision thereof the au9 thority to impose any tax, fee, charge, or other

10 assessment upon an Indian tribe, an Indian

11 gaming operation or the value generated by the

12 gaming operation, or any person or entity au13 thorized by an Indian tribe to engage in a class

14 III gaming activity in conformance with this

15 Act.

16 ‘‘(6) STATUTORY CONSTRUCTION WITH RE17 SPECT TO CERTAIN RIGHTS OF INDIAN TRIBES.—

18 Nothing in this subsection impairs the right of an

19 Indian tribe to regulate class III gaming on the In20 dian lands of the Indian tribe concurrently with a

21 State and the Commission, except to the extent that

22 such regulation is inconsistent with, or less stringent

23 than, this Act or any laws (including any rule or

24 regulation) made applicable by any compact entered
70

•S 1077 IS

1 into by the Indian tribe under this subsection that

2 is in effect.

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

4 and 5 of the Act of January 2, 1951 (commonly re5 ferred to as the ‘Gambling Devices Transportation

6 Act’) (64 Stat. 1134, chapter 1194, 15 U.S.C. 1172

7 and 1175) shall not apply to any class II gaming ac8 tivity or any gaming activity conducted pursuant to

9 a compact entered into after the date of enactment

10 of this Act or conducted pursuant to procedures pre11 scribed by the Secretary under this Act, but in no

12 event shall this paragraph be construed as invalidat13 ing any exemption from section 2 or 5 of the Act of

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

15 to the date of enactment of this Act or any proce16 dures for conducting a gaming activity prescribed by

17 the Secretary prior to such date of enactment.

18 ‘‘(b) JURISDICTION OF UNITED STATES DISTRICT

19 COURT FOR THE DISTRICT OF COLUMBIA.—The United

20 States District Court for the District of Columbia shall

21 have jurisdiction over any action initiated by the Sec22 retary, the Commission, a State, or an Indian tribe to en23 force any provision of a compact under subsection (a) that

24 is in effect or to enjoin a class III gaming activity located

25 on Indian lands and conducted in violation of such com-
71

•S 1077 IS

1 pact that is in effect and that was entered into under sub2 section (a).

3 ‘‘(c) REVOCATION OF ORDINANCE.—

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

5 Indian tribe, in its sole discretion, may adopt an or6 dinance or resolution revoking any prior ordinance

7 or resolution that authorized class III gaming on the

8 Indian lands of the Indian tribe. Such revocation

9 shall render class III gaming illegal on the Indian

10 lands of such Indian tribe.

11 ‘‘(2) PUBLICATION OF REVOCATION.—An In12 dian tribe shall submit any revocation ordinance or

13 resolution described in paragraph (1) to the Com14 mission. Not later than 90 days after the date on

15 which the Commission receives such ordinance or

16 resolution, the Commission shall publish such ordi17 nance or resolution in the Federal Register. The rev18 ocation provided by such ordinance or resolution

19 shall take effect on the date of such publication.

20 ‘‘(3) CONDITIONAL OPERATION.—Notwithstand21 ing any other provision of this subsection—

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

23 III gaming activity pursuant to this subsection

24 on the date on which an ordinance or resolution

25 described in paragraph (1) that revokes author-
72

•S 1077 IS

1 ization for such class III gaming activity is pub2 lished in the Federal Register may, during the

3 1-year period beginning on the date on which

4 such revocation, ordinance, or resolution is pub5 lished under paragraph (2), continue to operate

6 such activity in conformance with an applicable

7 compact approved or issued under subsection

8 (a) that is in effect; and

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

10 and any crime that is committed before, the ex11 piration of such 1-year period shall not be af12 fected by such revocation ordinance, or resolu13 tion.

14 ‘‘(d) CERTAIN CLASS III GAMING ACTIVITIES.—

15 ‘‘(1) COMPACTS ENTERED INTO BEFORE THE

16 DATE OF ENACTMENT OF THE INDIAN GAMING REG17 ULATORY ACT AMENDMENTS ACT OF 1997.—

18 ‘‘(A) IN GENERAL.—Subject to subpara19 graph (B), class III gaming activities that are

20 authorized under a compact approved, or proce21 dures prescribed, by the Secretary under the

22 authority of this Act prior to the date of enact23 ment of the Indian Gaming Regulatory Act

24 Amendments Act of 1997 shall, during such pe25 riod as the compact is in effect, remain lawful
73

•S 1077 IS

1 for the purposes of this Act, notwithstanding

2 the Indian Gaming Regulatory Act Amend3 ments Act of 1997 and the amendments made

4 by such Act or any change in State law enacted

5 after the approval or issuance of the compact.

6 ‘‘(B) COMPACT OR PROCEDURES SUBJECT

7 TO MINIMUM REGULATORY STANDARDS.—Sub8 paragraph (A) shall apply to a compact or pro9 cedures described in that subparagraph on the

10 condition that any class III gaming activity con11 ducted under the compact or procedures shall

12 be subject to all Federal minimum regulatory

13 standards established under this Act and the

14 regulations promulgated under this Act.

15 ‘‘(2) COMPACT ENTERED INTO AFTER THE

16 DATE OF ENACTMENT OF THE INDIAN GAMING REG17 ULATORY ACT AMENDMENTS ACT OF 1997.—Any

18 compact entered into under subsection (a) after the

19 date specified in paragraph (1) shall remain lawful

20 for the purposes of this Act, notwithstanding any

21 change in State law enacted after the approval or is22 suance of the compact.
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•S 1077 IS

1 ‘‘SEC. 13. REVIEW OF CONTRACTS.

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

3 shall, in accordance with this section, review and approve

4 or disapprove—

5 ‘‘(1) any management contract for the oper6 ation and management of any gaming activity that

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

8 ‘‘(2) unless licensed by an Indian tribe consist9 ent with the minimum Federal standards adopted

10 pursuant to section 7(c), any gaming-related con11 tract.

12 ‘‘(b) MANAGEMENT CONTRACT REQUIREMENTS.—

13 The Commission shall approve any management contract

14 between an Indian tribe and a person licensed by an In15 dian tribe or the Commission that is entered into pursuant

16 to this Act only if the Commission determines that the

17 contract provides for—

18 ‘‘(1) adequate accounting procedures that are

19 maintained, and verifiable financial reports that are

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

21 tribe on a monthly basis;

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

23 appropriate officials of the Indian tribe who shall

24 have the right to verify the daily gross revenues and

25 income derived from any gaming activity;
75

•S 1077 IS

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

3 any development and construction costs;

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

5 of any development and construction costs;

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

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

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

10 Commission is satisfied that the capital investment

11 required, and the income projections for, the par12 ticular gaming activity require the additional time;

13 and

14 ‘‘(6) grounds and mechanisms for the termi15 nation of the contract, but any such termination

16 shall not require the approval of the Commission.

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

18 NET REVENUES.—

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

20 approve a management contract that provides for a

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

22 of a tribal gaming activity if the Commission deter23 mines that such percentage fee is reasonable, taking

24 into consideration surrounding circumstances.
76

•S 1077 IS

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

2 paragraph (3), a fee described in paragraph (1) shall

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

4 revenues described in such paragraph.

5 ‘‘(3) EXCEPTION.—Upon the request of an In6 dian tribe, if the Commission is satisfied that the

7 capital investment required, and income projections

8 for, a tribal gaming activity, necessitate a fee in ex9 cess of the amount specified in paragraph (2), the

10 Commission may approve a management contract

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

12 an amount in excess of the amount specified in para13 graph (2), but not to exceed 40 percent of the net

14 revenues described in paragraph (1).

15 ‘‘(d) GAMING-RELATED CONTRACT REQUIRE16 MENTS.—The Commission shall approve a gaming-related

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

18 into pursuant to this Act only if the Commission deter19 mines that the contract provides for—

20 ‘‘(1) grounds and mechanisms for termination

21 of the contract, but such termination shall not re22 quire the approval of the Commission; and

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

24 may be empowered to impose by this Act.

25 ‘‘(e) TIME PERIOD FOR REVIEW.—
77

•S 1077 IS

1 ‘‘(1) IN GENERAL.—Except as provided in para2 graph (2), not later than 90 days after the date on

3 which a management contract or other gaming-relat4 ed contract is submitted to the Commission for ap5 proval, the Commission shall approve or disapprove

6 such contract on the merits of the contract. The

7 Commission may extend the 90-day period for an

8 additional period of not more than 45 days if the

9 Commission notifies the Indian tribe in writing of

10 the reason for the extension of the period. The In11 dian tribe may bring an action in the United States

12 District Court for the District of Columbia to com13 pel action by the Commission if a contract has not

14 been approved or disapproved by the termination

15 date of an applicable period under this subsection.

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

17 ACT ON CERTAIN GAMING-RELATED CONTRACTS.—

18 Any gaming-related contract for an amount less

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

20 Commission pursuant to paragraph (1) by a person

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

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

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

24 Commission, the Commission fails to approve or dis25 approve the contract.
78

•S 1077 IS

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

3 hearing on the record—

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

6 with the provisions of this Act; and

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

8 Commission under this Act if the Commission deter9 mines that any provision of this Act has been vio10 lated 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—
79

•S 1077 IS

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

7 and outstanding stock—

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

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

10 contract;

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

12 gaming offense;

13 ‘‘(C) has knowingly and willfully provided

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

16 pursuant to this Act or has refused to respond

17 to questions propounded by the Commission; or

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

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

20 reputation, habits, and associations pose a

21 threat to the public interest or to the effective

22 regulation and control of gaming, or create or

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

25 conduct of gaming or the carrying on of the
80

•S 1077 IS

1 business and financial arrangements incidental

2 thereto;

3 ‘‘(2) the contractor—

4 ‘‘(A) has unduly interfered or influenced

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

7 activity; or

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

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

12 or

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

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

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

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

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

21 for the implementation of this Act, the Commission

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

24 Gaming Regulatory Act Amendments Act of 1997,

25 entered into a management contract that was ap-
81

•S 1077 IS

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

3 including all collateral agreements relating to the

4 gaming activity, for review by the Commission not

5 later than 60 days after such notification. Any such

6 contract shall be valid under this Act, unless the

7 contract is disapproved by the Commission under

8 this section.

9 ‘‘(2) REVIEW.—

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

11 days after the submission of a management

12 contract, including all collateral agreements, to

13 the Commission pursuant to this section, the

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

19 ‘‘(B) APPROVAL OF CONTRACT.—The

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

22 if the Commission determines that—

23 ‘‘(i) the management contract meets

24 the requirements of section 13; and
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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—

9 ‘‘(i) the Commission shall provide the

10 parties to such contract written notifica11 tion of the necessary modifications; and

12 ‘‘(ii) the parties referred to in clause

13 (i) shall have 180 days after the date on

14 which such notification is provided to make

15 the modifications.

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

17 GAMING COMMISSION.—

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

19 provision of this Act, the Chairman and the associ20 ate members of the National Indian Gaming Com21 mission who are holding office on the day before the

22 date of enactment of the Indian Gaming Regulatory

23 Act Amendments Act of 1997 shall exercise the au24 thorities described in paragraph (2) until such time

25 as all of the initial members of the Federal Indian
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1 Gaming Regulatory Commission are sworn into of2 fice.

3 ‘‘(2) AUTHORITIES.—Until the date specified in

4 paragraph (1), the Chairman and the associate

5 members of the National Indian Gaming Commis6 sion referred to in that paragraph shall exercise

7 those authorities vested in the Federal Indian Gam8 ing Regulatory Commission by this Act (other than

9 the authority specified in section 7(a)(1)(A) and any

10 other authority directly related to the administration

11 of the Federal Indian Gaming Regulatory Commis12 sion as an independent establishment, as defined in

13 section 104 of title 5, United States Code).

14 ‘‘(3) REGULATIONS.—Until such time as the

15 Commission promulgates revised regulations after

16 the date of enactment of the Indian Gaming Regu17 latory Act Amendments Act of 1997, the regulations

18 promulgated under this Act, as in effect on the day

19 before the date of enactment of the Indian Gaming

20 Regulatory Act Amendments Act of 1997, shall

21 apply.

22 ‘‘SEC. 15. CIVIL PENALTIES.

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

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

25 this Act or any rule or regulation promulgated under this
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1 Act, or who fails to carry out any act or causes the failure

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

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

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

5 violation.

6 ‘‘(b) ASSESSMENT AND COLLECTION.—

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

8 under this section shall be assessed by the Commis9 sion and collected in a civil action brought by the

10 Attorney General on behalf of the United States.

11 Before the Commission refers civil penalty claims to

12 the Attorney General, the Commission may com13 promise the civil penalty after affording the person

14 charged with a violation referred to in subsection

15 (a), an opportunity to present views and evidence in

16 support of such action by the Commission to estab17 lish that the alleged violation did not occur.

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

19 amount of a civil penalty assessed under this section,

20 the Commission shall take into account—

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

22 and gravity of the violation committed;

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

24 have committed such violation, the degree of

25 culpability, any history of prior violations, abil-
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1 ity to pay, the effect on ability to continue to

2 do business; and

3 ‘‘(C) such other matters as justice may re4 quire.

5 ‘‘(c) TEMPORARY CLOSURES.—

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

7 the temporary closure of all or part of an Indian

8 gaming operation for a substantial violation of any

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

10 ‘‘(2) HEARING ON ORDER OF TEMPORARY CLO11 SURE.—

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

13 days after the issuance of an order of tem14 porary closure, the Indian tribe or the individ15 ual owner of a gaming operation shall have the

16 right to request a hearing on the record before

17 the Commission to determine whether such

18 order should be made permanent or dissolved.

19 ‘‘(B) DEADLINES RELATING TO HEAR20 ING.—Not later than 30 days after a request

21 for a hearing is made under subparagraph (A),

22 the Commission shall conduct such hearing.

23 Not later than 30 days after the termination of

24 the hearing, the Commission shall render a

25 final decision on the closure.
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1 ‘‘SEC. 16. JUDICIAL REVIEW.

2 ‘‘A decision made by the Commission pursuant to sec3 tion 7, 8, 10, 13, 14, or 15 shall constitute a final agency

4 decision for purposes of appeal to the United States Dis5 trict Court for the District of Columbia pursuant to chap6 ter 7 of title 5, United States Code.

7 ‘‘SEC. 17. COMMISSION FUNDING.

8 ‘‘(a) ANNUAL FEES.—

9 ‘‘(1) IN GENERAL.—The Commission shall es10 tablish a schedule of fees to be paid to the Commis11 sion annually by gaming operations for each class II

12 and class III gaming activity that is regulated by

13 this Act.

14 ‘‘(2) LIMITATION ON FEE RATES.—

15 ‘‘(A) IN GENERAL.—For each gaming op16 eration regulated under this Act, the rate of the

17 fees imposed under the schedule established

18 under paragraph (1) shall not exceed 2 percent

19 of the net revenues of that gaming operation.

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

21 amount of all fees imposed during any fiscal

22 year under the schedule established under para23 graph (1) shall be equal to not more than

24 $25,000,000.

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

26 a vote of a majority of the members of the Commis-
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1 sion, shall annually adopt the rate of the fees au2 thorized by this section. Those fees shall be payable

3 to the Commission on a monthly basis.

4 ‘‘(4) ADJUSTMENT OF FEES.—The fees im5 posed upon a gaming operation may be reduced by

6 the Commission to take into account any regulatory

7 functions that are performed by an Indian tribe, or

8 the Indian tribe and a State, pursuant to regulations

9 promulgated by the Commission.

10 ‘‘(5) CONSEQUENCES OF FAILURE TO PAY

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

12 schedule established under paragraph (1) shall, sub13 ject to regulations promulgated by the Commission,

14 be grounds for revocation of the approval of the

15 Commission of any license required under this Act

16 for the operation of gaming activities.

17 ‘‘(6) SURPLUS FUNDS.—To the extent that rev18 enues derived from fees imposed under the schedule

19 established under paragraph (1) exceed the limita20 tion in paragraph (2)(B) or are not expended or

21 committed at the close of any fiscal year, those sur22 plus funds shall be credited to each gaming activity

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

24 against those fees imposed for the succeeding year.
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1 ‘‘(b) REIMBURSEMENT OF COSTS.—The Commission

2 may assess any applicant, except the governing body of

3 an Indian tribe, for any license required pursuant to this

4 Act. That assessment shall be an amount equal to the ac5 tual costs of conducting all reviews and investigations nec6 essary for the Commission to determine whether a license

7 should be granted or denied to the applicant.

8 ‘‘(c) ANNUAL BUDGET.—

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

10 beginning after the date of enactment of the Indian

11 Gaming Regulatory Act Amendments Act of 1997,

12 and each fiscal year thereafter, the Commission shall

13 adopt an annual budget for the expenses and oper14 ation of the Commission.

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

16 budget of the Commission may include a request for

17 appropriations authorized under section 18.

18 ‘‘(3) SUBMISSION TO CONGRESS.—Notwith19 standing any other provision of law, a request for

20 appropriations made pursuant to paragraph (2) shall

21 be submitted by the Commission directly to Con22 gress beginning with the request for the first full fis23 cal year beginning after the date of enactment of

24 this Act, and shall include the proposed annual
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1 budget of the Commission and the estimated reve2 nues to be derived from fees.

3 ‘‘SEC. 18. AUTHORIZATION OF APPROPRIATIONS.

4 ‘‘Subject to section 17, there are authorized to be ap5 propriated $5,000,000 to provide for the operation of the

6 Commission for each of fiscal years 1998, 1999, and 2000,

7 to remain available until expended.

8 ‘‘SEC. 19. APPLICATION OF THE INTERNAL REVENUE CODE

9 OF 1986.

10 ‘‘(a) IN GENERAL.—The provisions of the Internal

11 Revenue Code of 1986 (including sections 1441, 3402(q),

12 6041, and chapter 35 of such Code) concerning the report13 ing and withholding of taxes with respect to the winnings

14 from gaming or wagering operations shall apply to Indian

15 gaming operations conducted pursuant to this Act in the

16 same manner as such provisions apply to State gaming

17 and wagering operations. Any exemptions under those pro18 visions to States with respect to taxation of that gaming

19 or wagering operation shall be allowed to Indian tribes.

20 ‘‘(b) EXEMPTION.—The provisions of section 6050I

21 of the Internal Revenue Code of 1986 shall apply to an

22 Indian gaming establishment that is not designated by the

23 Secretary of the Treasury as a financial institution pursu24 ant to chapter 53 of title 31, United States Code.
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1 ‘‘(c) STATUTORY CONSTRUCTION.—This section shall

2 apply notwithstanding any other provision of law enacted

3 before, on, or after, the date of enactment of this Act un4 less such other provision of law specifically cites this sub5 section.

6 ‘‘(d) ACCESS TO INFORMATION BY STATE AND TRIB7 AL GOVERNMENTS.—Subject to section 7(d), upon the re8 quest of a State or the governing body of an Indian tribe,

9 the Commission shall make available any law enforcement

10 information that the Commission has obtained pursuant

11 to such section, unless otherwise prohibited by law, in

12 order to enable the State or the Indian tribe to carry out

13 its responsibilities under this Act or any compact approved

14 by the Secretary.’’; and

15 (5) by striking section 20(d).

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(14) of the In21 dian Gaming Regulatory Act’’.

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

23 amended—

24 (1) in section 1166—
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1 (A) in subsection (c), by striking ‘‘a Trib2 al-State compact approved by the Secretary of

3 the Interior under section 11(d)(8) of the In4 dian Gaming Regulatory Act that is in effect’’

5 and inserting ‘‘a compact approved by the Sec6 retary of the Interior under section 12(a) of the

7 Indian Gaming Regulatory Act that is in effect

8 or pursuant to procedures prescribed by the

9 Secretary of the Interior under section

10 12(a)(3)(B)(iii) of such Act’’; and

11 (B) in subsection (d), by striking ‘‘a Trib12 al-State compact approved by the Secretary of

13 the Interior under section 11(d)(8) of the In14 dian Gaming Regulatory Act’’ and inserting ‘‘a

15 compact approved by the Secretary of the Inte16 rior under section 12(a) of the Indian Gaming

17 Regulatory Act or pursuant to procedures pre18 scribed by the Secretary of the Interior under

19 section 12(a)(3)(B)(iii) of such Act,’’;

20 (2) in section 1167, by striking ‘‘pursuant to an

21 ordinance or resolution approved by the National In22 dian Gaming Commission’’ each place it appears;

23 and
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1 (3) in section 1168, by striking ‘‘pursuant to an

2 ordinance or resolution approved by the National In3 dian Gaming Commission,’’ each place it appears.

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

5 168(j)(4)(A)(iv) of the Internal Revenue Code of 1986 is

6 amended by striking ‘‘Indian Regulatory Act’’ and insert7 ing ‘‘Indian Gaming Regulatory Act’’.

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

9 amended—

10 (1) in section 3701(2)—

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

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

13 and inserting ‘‘section 4(15) of the Indian

14 Gaming Regulatory Act’’; and

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

16 (25 U.S.C. 2703(4))’’ and inserting ‘‘section

17 4(14) of such Act’’; and

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

19 of the Indian Gaming Regulatory Act’’ and inserting

20 ‘‘section 4(14) of the Indian Gaming Regulatory

21 Act’’.

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