II

105TH CONGRESS

2D SESSION S. 1870

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

IN THE SENATE OF THE UNITED STATES

MARCH 26, 1998

Mr. CAMPBELL 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 Improvement Act of 1998’’.

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. National Indian Gaming Commission.

‘‘Sec. 6. Powers and authority of the National Indian Gaming Commission and

Chairman.

‘‘Sec. 7. Regulatory framework.

‘‘Sec. 8. Negotiated rulemaking.

‘‘Sec. 9. Requirements for the conduct of class I and class II gaming on Indian

lands.

‘‘Sec. 10. Class III gaming on Indian lands.

‘‘Sec. 11. Review of contracts.

‘‘Sec. 12. Civil penalties.

‘‘Sec. 13. Judicial review.

‘‘Sec. 14. Commission funding.

‘‘Sec. 15. Authorization of appropriations.

‘‘Sec. 16. Application of Internal Revenue Code of 1986; access to information

by States and tribal governments.

‘‘Sec. 17. Gaming proscribed on lands acquired in trust after the date of enactment of this Act.

‘‘Sec. 18. Dissemination of information.

‘‘Sec. 19. Severability.

‘‘Sec. 20. Criminal penalties.

‘‘Sec. 21. Conforming amendment.

‘‘Sec. 22. Commission staffing.’’;

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

7 the following;

8 ‘‘SEC. 2. CONGRESSIONAL FINDINGS.

9 ‘‘The Congress finds that—

10 ‘‘(1) Indian tribes are—

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

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

2 ‘‘(2) because of the unique political and legal

3 relationship between the United States and Indian

4 tribes, Congress has the responsibility of protecting

5 tribal resources and ensuring the continued viability

6 of Indian gaming activities conducted on Indian

7 lands;

8 ‘‘(3) clear Federal standards and regulations

9 for the conduct of gaming on Indian lands will assist

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

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

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

15 ‘‘(5) Indian tribes have the exclusive right to

16 regulate gaming activity on Indian lands, if the gam17 ing activity—

18 ‘‘(A) is not specifically prohibited by Fed19 eral law; and

20 ‘‘(B) is conducted within a State that does

21 not, as a matter of public policy, prohibit that

22 gaming activity;

23 ‘‘(6) Congress has the authority to regulate the

24 privilege of doing business with Indian tribes in In-
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1 dian country (as defined in section 1151 of title 18,

2 United States Code);

3 ‘‘(7) systems for the regulation of gaming ac4 tivities on Indian lands should meet or exceed feder5 ally established minimum regulatory requirements;

6 ‘‘(8) the operation of gaming activities on In7 dian lands has had a significant impact on com8 merce with foreign nations, and among the several

9 States, and with the Indian tribes; and

10 ‘‘(9) the Constitution vests the Congress with

11 the powers to regulate commerce with foreign na12 tions, and among the several States, and with the

13 Indian tribes, and this Act is enacted in the exercise

14 of those powers.

15 ‘‘SEC. 3. PURPOSES.

16 ‘‘The purposes of this Act are—

17 ‘‘(1) to ensure the right of Indian tribes to con18 duct gaming activities on Indian lands in a manner

19 consistent with—

20 ‘‘(A) the inherent sovereign rights of In21 dian tribes; and

22 ‘‘(B) the decision of the Supreme Court in

23 California et al. v. Cabazon Band of Mission In24 dians et al. (480 U.S.C. 202, 107 S. Ct. 1083,

25 94 L. Ed. 2d 244 (1987)), involving the
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1 Cabazon and Morongo bands of Mission Indi2 ans;

3 ‘‘(2) to provide a statutory basis for the con4 duct of gaming activities on Indian lands as a means

5 of promoting tribal economic development, tribal

6 self-sufficiency, and strong Indian tribal govern7 ments;

8 ‘‘(3) to provide a statutory basis for the regula9 tion of gaming activities on Indian lands by an In10 dian tribe that is adequate to shield those activities

11 from organized crime and other corrupting influ12 ences, to ensure that an Indian tribal government is

13 the primary beneficiary of the operation of gaming

14 activities, and to ensure that gaming is conducted

15 fairly and honestly by both the operator and players;

16 and

17 ‘‘(4) to provide States with the opportunity to

18 participate in the regulation of certain gaming ac19 tivities conducted on Indian lands without compel20 ling any action by a State with respect to the regula21 tion of that gaming.’’;

22 (3) in section 4—

23 (A) by redesignating paragraphs (7) and

24 (8) as paragraphs (5) and (6), respectively;
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1 (B) by striking paragraphs (1) through (6)

2 and inserting the following new paragraphs:

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

4 any person who applies for a license pursuant to this

5 Act, including any person who applies for a renewal

6 of a license.

7 ‘‘(2) ATTORNEY GENERAL.—The term ‘Attor8 ney General’ means the Attorney General of the

9 United States.

10 ‘‘(3) CHAIRMAN.—The term ‘Chairman’ means

11 the Chairman of the Commission.

12 ‘‘(4) CLASS I GAMING.—The term ‘class I gam13 ing’ means social games played solely for prizes of

14 minimal value or traditional forms of Indian gaming

15 engaged in by individuals as a part of, or in connec16 tion with, tribal ceremonies or celebrations.’’;

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

18 and

19 (D) by adding after paragraph (6) (as re20 designated by subparagraph (A) of this para21 graph) the following new paragraphs:

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

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

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

4 tribe and a State and that is approved by the Sec5 retary.

6 ‘‘(9) GAMING OPERATION.—The term ‘gaming

7 operation’ means an entity that conducts class II or

8 class III gaming on Indian lands.

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

10 means—

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

13 ‘‘(B) any lands the title to which is held in

14 trust by the United States for the benefit of

15 any Indian tribe or individual or held by any

16 Indian tribe or individual subject to restriction

17 by the United States against alienation and

18 over which an Indian tribe exercises govern19 mental power.

20 ‘‘(11) INDIAN TRIBE.—The term ‘Indian tribe’

21 means any Indian tribe, band, nation, or other orga22 nized group or community of Indians that—

23 ‘‘(A) is recognized as eligible by the Sec24 retary for the special programs and services
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1 provided by the United States to Indians be2 cause of their status as Indians; and

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

4 self-government.

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

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

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

11 ‘‘(13) 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 ‘‘(14) NET REVENUES.—With respect to a gam18 ing activity, net revenues shall constitute—

19 ‘‘(A) the annual amount of money wa20 gered; reduced by

21 ‘‘(B)(i) any amounts paid out during the

22 year involved for prizes awarded;

23 ‘‘(ii) the total operating expenses for the

24 year involved (excluding any management fees)

25 associated with the gaming activity; and
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1 ‘‘(iii) an allowance for amortization of cap2 ital expenses for structures.

3 ‘‘(15) PERSON.—The term ‘person’ means—

4 ‘‘(A) an individual; or

5 ‘‘(B) a firm, corporation, association, orga6 nization, partnership, trust, consortium, joint

7 venture, or other nongovernmental entity.

8 ‘‘(16) SECRETARY.—The term ‘Secretary’

9 means the Secretary of the Interior.’’;

10 (4) in section 5(b)(3), by striking ‘‘At least two

11 members of the Commission shall be enrolled mem12 bers of any Indian tribe.’’ and inserting ‘‘No fewer

13 than 2 members of the Commission shall be individ14 uals who—

15 ‘‘(A) are each enrolled as a member of an In16 dian tribe; and

17 ‘‘(B) have extensive experience or expertise in

18 tribal government.’’;

19 (5) by striking sections 6, 7 and 9 through 16

20 and redesignating section 8 as section 22 and insert21 ing the following:

22 ‘‘SEC. 6. POWERS AND AUTHORITY OF THE NATIONAL IN23 DIAN GAMING COMMISSION AND CHAIRMAN.

24 ‘‘(a) GENERAL POWERS OF COMMISSION.—
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1 ‘‘(1) IN GENERAL.—The Commission shall have

2 the power—

3 ‘‘(A) to approve the annual budget of the

4 Commission;

5 ‘‘(B) to promulgate regulations to carry

6 out the duties of the Commission under this Act

7 in the same manner as an independent estab8 lishment (as that term is used in section 104 of

9 title 5, United States Code);

10 ‘‘(C) to establish a rate of fees and assess11 ments, as provided in section 14;

12 ‘‘(D) to conduct investigations, including

13 background investigations;

14 ‘‘(E) to issue a temporary order closing the

15 operation of gaming activities;

16 ‘‘(F) after a hearing, to make permanent

17 a temporary order closing the operation of gam18 ing activities, as provided in section 12;

19 ‘‘(G) to grant, deny, limit, condition, re20 strict, revoke, or suspend any license issued

21 under any licensing authority conferred upon

22 the Commission pursuant to this Act or fine

23 any person licensed pursuant to this Act for

24 violation of any of the conditions of licensure

25 under this Act;
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1 ‘‘(H) to inspect and examine all premises

2 in which class II or class III gaming is con3 ducted on Indian lands;

4 ‘‘(I) to demand access to and inspect, ex5 amine, photocopy, and audit all papers, books,

6 and records of class II and class III gaming ac7 tivities conducted on Indian lands and any

8 other matters necessary to carry out the duties

9 of the Commission under this Act;

10 ‘‘(J) to use the United States mails in the

11 same manner and under the same conditions as

12 any department or agency of the United States;

13 ‘‘(K) to procure supplies, services, and

14 property by contract in accordance with applica15 ble Federal laws;

16 ‘‘(L) to enter into contracts with Federal,

17 State, tribal, and private entities for activities

18 necessary to the discharge of the duties of the

19 Commission;

20 ‘‘(M) to serve, or cause to be served, proc21 ess or notices of the Commission in a manner

22 provided for by the Commission or in a manner

23 provided for the service of process and notice in

24 civil actions in accordance with the applicable

25 rules of a Federal, State, or tribal court;
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1 ‘‘(N) to propound written interrogatories

2 and appoint hearing examiners, to whom may

3 be delegated the power and authority to admin4 ister oaths, issue subpoenas, propound written

5 interrogatories, and require testimony under

6 oath;

7 ‘‘(O) to conduct all administrative hearings

8 pertaining to civil violations of this Act (includ9 ing any civil violation of a regulation promul10 gated under this Act);

11 ‘‘(P) to collect all fees and assessments au12 thorized by this Act and the regulations pro13 mulgated pursuant to this Act;

14 ‘‘(Q) to assess penalties for violations of

15 the provisions of this Act and the regulations

16 promulgated pursuant to this Act;

17 ‘‘(R) to provide training and technical as18 sistance to Indian tribes with respect to all as19 pects of the conduct and regulation of gaming

20 activities;

21 ‘‘(S) to monitor and, as specifically author22 ized by this Act, regulate class II and class III

23 gaming;

24 ‘‘(T) to approve all management contracts

25 and gaming-related contracts; and
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1 ‘‘(U) in addition to the authorities other2 wise specified in this Act, to delegate, by pub3 lished order or rule, any of the functions of the

4 Commission (including functions with respect to

5 hearing, determining, ordering, certifying, re6 porting, or otherwise acting on the part of the

7 Commission concerning any work, business, or

8 matter) to a division of the Commission, an in9 dividual member of the Commission, an admin10 istrative law judge, or an employee of the Com11 mission.

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

13 this section may be construed to authorize the dele14 gation of the function of rulemaking, as described in

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

16 Code, with respect to general rules (as distinguished

17 from rules of particular applicability), or the promul18 gation of any other rule.

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

20 ‘‘(1) IN GENERAL.—With respect to the delega21 tion of any of the functions of the Commission, the

22 Commission shall retain a discretionary right to re23 view the action of any division of the Commission,

24 individual member of the Commission, administra-
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1 tive law judge, or employee of the Commission, upon

2 the initiative of the Commission.

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

4 1 member of the Commission shall be sufficient to

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

6 the Commission for review, and the Commission

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

8 not later than the last day of the applicable period

9 specified in regulations promulgated by the Commis10 sion.

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

12 Commission declines to exercise the right to that re13 view or fails to exercise that right within the applica14 ble period specified in regulations promulgated by

15 the Commission, the action of any such division of

16 the Commission, individual member of the Commis17 sion, administrative law judge, or employee shall, for

18 all purposes, including any appeal or review of that

19 action, be deemed an action of the Commission.

20 ‘‘(c) MINIMUM REQUIREMENTS.—The Commission

21 shall advise the Secretary, as provided in section 8(a), with

22 respect to the establishment of minimum Federal stand23 ards—

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

25 persons, and licensing of gaming operations associ-
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1 ated with the conduct or regulation of class II and

2 class III gaming on Indian lands by tribal govern3 ments; and

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

5 gaming activities on Indian lands, including—

6 ‘‘(A) surveillance and security personnel

7 and systems capable of monitoring all gaming

8 activities, including the conduct of games, cash9 iers’ cages, change booths, count rooms, move10 ments of cash and chips, entrances and exits to

11 gaming facilities, and other critical areas of any

12 gaming facility;

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

14 integrity of the rules for the play of games and

15 controls related to those rules;

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

17 ‘‘(D) controls over gambling devices and

18 equipment; and

19 ‘‘(E) accounting and auditing.

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

21 ‘‘(1) IN GENERAL.—The Commission may se22 cure from any department or agency of the United

23 States information necessary to enable the Commis24 sion to carry out this Act. Unless otherwise prohib25 ited by law, upon request of the Chairperson, the
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1 head of that department or agency shall furnish that

2 information to the Commission.

3 ‘‘(2) INFORMATION TRANSFER.—The Commis4 sion may secure from any law enforcement agency or

5 gaming regulatory agency of any State, Indian tribe,

6 or foreign nation information necessary to enable the

7 Commission to carry out this Act. Unless otherwise

8 prohibited by law, upon request of the Chairman,

9 the head of any State or tribal law enforcement

10 agency shall furnish that information to the Com11 mission.

12 ‘‘(3) PRIVILEGED INFORMATION.—Notwith13 standing sections 552 and 552a of title 5, United

14 States Code, the Commission shall protect from dis15 closure information provided by Federal, State, trib16 al, or international law enforcement or gaming regu17 latory agencies.

18 ‘‘(4) LAW ENFORCEMENT AGENCY.—For pur19 poses of this subsection, the Commission shall be

20 considered to be a law enforcement agency.

21 ‘‘(e) INVESTIGATIONS AND ACTIONS.—

22 ‘‘(1) IN GENERAL.—

23 ‘‘(A) POSSIBLE VIOLATIONS.—The Com24 mission may, as specifically authorized by this

25 Act, conduct such investigations as the Com-
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1 mission considers necessary to determine wheth2 er any person has violated, is violating, or is

3 conspiring to violate any provision of this Act

4 (including any rule or regulation promulgated

5 under this Act). The Commission may require

6 or permit any person to file with the Commis7 sion a statement in writing, under oath, or oth8 erwise, as the Commission may determine, con9 cerning all relevant facts and circumstances re10 garding the matter under investigation by the

11 Commission pursuant to this subsection.

12 ‘‘(B) ADMINISTRATIVE INVESTIGATIONS.—

13 The Commission may, as specifically authorized

14 by this Act, investigate such facts, conditions,

15 practices, or matters as the Commission consid16 ers necessary or proper to aid in—

17 ‘‘(i) the enforcement of any provision

18 of this Act;

19 ‘‘(ii) issuing rules and regulations

20 under this Act; or

21 ‘‘(iii) securing information to serve as

22 a basis for recommending further legisla23 tion concerning the matters to which this

24 Act relates.

25 ‘‘(2) ADMINISTRATIVE AUTHORITIES.—
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1 ‘‘(A) IN GENERAL.—

2 ‘‘(i) ADMINISTRATION OF CERTAIN

3 DUTIES.—For the purpose of any inves4 tigation or any other proceeding conducted

5 under this Act, an individual described in

6 clause (ii) is empowered to administer

7 oaths and affirmations, subpoena wit8 nesses, compel their attendance, take evi9 dence, and require the production of any

10 books, papers, correspondence, memo11 randa, or other records that the Commis12 sion considers relevant or material to the

13 inquiry. The attendance of those witnesses

14 and the production of any such records

15 may be required from any place in the

16 United States at any designated place of

17 hearing.

18 ‘‘(ii) INDIVIDUALS DESCRIBED.—An

19 individual described in this clause is—

20 ‘‘(I) any member of the Commis21 sion who is designated by the Com22 mission to carry out duties specified

23 in clause (i); or

24 ‘‘(II) any other officer of the

25 Commission who is designated by the
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1 Commission to carry out duties speci2 fied in clause (i).

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 that 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 that person to appear before the Com17 mission, a member of the Commission, or an of18 ficer 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 that

22 order of the court may be punished by that

23 court as a contempt of that court.

24 ‘‘(3) ENFORCEMENT.—
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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 that 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 that 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)
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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 that agency or

5 department.

6 ‘‘(ii) EFFECT OF TRANSMITTAL BY

7 THE COMMISSION.—The transmittal by the

8 Commission pursuant to subparagraph

9 (A)(ii) may not be construed to constitute

10 a condition precedent with respect to any

11 action taken by any department or agency

12 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 ‘‘(f) POWERS OF THE CHAIRPERSON.—The Chair21 man shall have such powers as may be delegated to the

22 Chairman by the Commission.

23 ‘‘SEC. 7. REGULATORY FRAMEWORK.

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

25 tribes shall retain the right of those tribes, in a manner
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1 that meets or exceeds minimum Federal standards de2 scribed in section 6(c) (that are established by the Sec3 retary under section 8)—

4 ‘‘(1) to monitor and regulate that gaming;

5 ‘‘(2) to conduct background investigations; and

6 ‘‘(3) to establish and regulate internal control

7 systems.

8 ‘‘(b) CLASS III GAMING CONDUCTED UNDER A COM9 PACT.—For class III gaming conducted under the author10 ity of a compact entered into pursuant to section 10, an

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

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

13 that meets or exceeds minimum Federal standards de14 scribed in section 6(c) (that are established by the Sec15 retary under section 8)—

16 ‘‘(1) monitor and regulate gaming;

17 ‘‘(2) conduct background investigations; and

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

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

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

23 an Indian tribe that regulates or conducts class II

24 gaming on Indian lands substantially fails to meet

25 minimum Federal standards for that gaming, after
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1 providing the Indian tribe notice and reasonable op2 portunity to cure violations and to be heard, and

3 after the exhaustion of other authorized remedies

4 and sanctions, the Commission shall have the au5 thority to conduct background investigations, issue

6 licenses, and establish and regulate internal control

7 systems relating to class II gaming conducted by the

8 Indian tribe. That authority of the Commission may

9 be exclusive until such time as the regulatory and in10 ternal control systems of the Indian tribe meet or

11 exceed the minimum Federal standards concerning

12 regulatory, licensing, or internal control require13 ments established by the Secretary, in consultation

14 with the Commission, for that gaming.

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

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

17 class III gaming on Indian lands fails to meet or en18 force minimum Federal standards for class III gam19 ing, after providing notice and reasonable oppor20 tunity to cure violations and be heard, and after the

21 exhaustion of other authorized remedies and sanc22 tions, the Commission shall have the authority to

23 conduct background investigations, issue licenses,

24 and establish and regulate internal control systems

25 relating to class III gaming conducted by the Indian
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1 tribe. That authority of the Commission may be ex2 clusive until such time as the regulatory or internal

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

4 both) meet or exceed the minimum Federal regu5 latory, licensing, or internal control requirements es6 tablished by the Secretary, in consultation with the

7 Commission, for that gaming.

8 ‘‘SEC. 8. NEGOTIATED RULEMAKING.

9 ‘‘(a) IN GENERAL.—Subject to subsection (b), not

10 later than 180 days after the date of enactment of the

11 Indian Gaming Regulatory Improvement Act of 1998, the

12 Secretary shall, in cooperation with Indian tribes, and in

13 accordance with the negotiated rulemaking procedures

14 under subchapter III of chapter 5 of title 5, United States

15 Code, promulgate minimum Federal standards relating to

16 background investigations, internal control systems, and

17 licensing standards (as described in section 6(c)).

18 ‘‘(b) NEGOTIATED RULEMAKING COMMITTEE.—The

19 negotiated rulemaking committee established under sub20 chapter III of chapter 5 of title 5, United States Code,

21 to carry out subsection (a) shall be established by the Sec22 retary, in consultation with the Attorney General and the

23 Commission.

24 ‘‘(c) FACTORS FOR CONSIDERATION.—While the

25 minimum Federal standards established pursuant to this
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1 section may be developed with due regard for existing in2 dustry standards, the Secretary and the negotiated rule3 making committee established under subsection (b), in

4 promulgating standards pursuant to this section, shall

5 also consider—

6 ‘‘(1) the unique nature of tribal gaming as com7 pared to commercial gaming, other governmental

8 gaming, and charitable gaming;

9 ‘‘(2) the broad variations in the scope and size

10 of tribal gaming activity;

11 ‘‘(3) the inherent sovereign rights of Indian

12 tribes with respect to regulating their own affairs;

13 ‘‘(4) the findings and purposes set forth in sec14 tions 2 and 3;

15 ‘‘(5) the effectiveness and efficiency of a na16 tional licensing program for vendors or management

17 contractors; and

18 ‘‘(6) other matters that are not inconsistent

19 with the purposes of this Act.

20 ‘‘SEC. 9. REQUIREMENTS FOR THE CONDUCT OF CLASS I

21 AND CLASS II GAMING ON INDIAN LANDS.

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

23 lands shall be within the exclusive jurisdiction of the In24 dian tribes and shall not be subject to the provisions of

25 this Act.
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1 ‘‘(b) CLASS II GAMING.—

2 ‘‘(1) IN GENERAL.—Any class II gaming on In3 dian lands shall be within the jurisdiction of the In4 dian tribes, but shall be subject to the provisions of

5 this Act.

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

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

8 on Indian lands within the jurisdiction of that In9 dian tribe, if—

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

11 a State that permits such gaming for any pur12 pose by any person, organization, or entity (and

13 such gaming is not otherwise specifically pro14 hibited on Indian lands by Federal law); and

15 ‘‘(B) such Indian gaming meets or exceeds

16 the requirements of this section and the stand17 ards described in section 6(c) (that are estab18 lished by the Secretary under section 8).

19 ‘‘(3) REQUIREMENTS FOR CLASS II GAMING OP20 ERATIONS.—

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

22 ensure that, with regard to any class II gaming

23 operation on Indian lands—

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

25 Indian tribe for each place, facility, or lo-
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1 cation on Indian lands at which that In2 dian gaming is conducted;

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

4 the sole proprietary interest and respon5 sibility for the conduct of any class II gam6 ing, unless the conditions of clause (ix)

7 apply;

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

9 II gaming activity are used only—

10 ‘‘(I) to fund tribal government

11 operations or programs;

12 ‘‘(II) to provide for the general

13 welfare of the Indian tribe and the

14 members of the Indian tribe;

15 ‘‘(III) to promote tribal economic

16 development;

17 ‘‘(IV) to donate to charitable or18 ganizations;

19 ‘‘(V) to help fund operations of

20 local government agencies;

21 ‘‘(VI) to comply with the provi22 sions of section 14; or

23 ‘‘(VII) to make per capita pay24 ments to members of the Indian tribe

25 pursuant to clause (viii);
28

•S 1870 IS

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

2 Commission annual outside audit reports

3 of the class II gaming operation of the In4 dian tribe, which may be encompassed

5 within existing independent tribal audit

6 systems;

7 ‘‘(v) each contract for supplies, serv8 ices, or concessions for a contract amount

9 equal to more than $100,000 per year,

10 other than a contract for professional legal

11 or accounting services, relating to that

12 gaming is subject to those independent

13 audit reports and any audit conducted by

14 the Commission;

15 ‘‘(vi) the construction and mainte16 nance of a class II gaming facility and the

17 operation of class II gaming are conducted

18 in a manner that adequately protects the

19 environment and public health and safety;

20 ‘‘(vii) there is instituted an adequate

21 system that—

22 ‘‘(I) ensures that—

23 ‘‘(aa) background investiga24 tions are conducted on primary

25 management officials, key em-
29

•S 1870 IS

1 ployees, and persons having ma2 terial control, either directly or

3 indirectly, in a licensed class II

4 gaming operation, and gaming5 related contractors associated

6 with a licensed class II gaming

7 operation; and

8 ‘‘(bb) oversight of those offi9 cials and the management by

10 those officials is conducted on an

11 ongoing basis; and

12 ‘‘(II) includes—

13 ‘‘(aa) tribal licenses for per14 sons involved in class II gaming

15 operations, issued in accordance

16 with the standards described in

17 section 6(c) (that are established

18 by the Secretary under section

19 8);

20 ‘‘(bb) a standard under

21 which any person whose prior ac22 tivities, criminal record, if any, or

23 reputation, habits, and associa24 tions pose a threat to the public

25 interest or to the effective regula-
30

•S 1870 IS

1 tion of gaming, or create or en2 hance the dangers of unsuitable,

3 unfair, or illegal practices and

4 methods and activities in the con5 duct of gaming shall not be eligi6 ble for employment or licensure;

7 and

8 ‘‘(cc) notification by the In9 dian tribe to the Commission of

10 the results of that background in11 vestigation before the issuance of

12 any such license;

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

14 gaming activities conducted or licensed by

15 any Indian tribal government are used to

16 make per capita payments to members of

17 the Indian tribe only if—

18 ‘‘(I) the Indian tribe has pre19 pared a plan to allocate revenues to

20 uses authorized by clause (iii);

21 ‘‘(II) the Secretary determines

22 that the plan is adequate, particularly

23 with respect to uses described in sub24 clause (I) or (III) of clause (iii);
31

•S 1870 IS

1 ‘‘(III) the interests of minors and

2 other legally incompetent persons who

3 are entitled to receive any of the per

4 capita payments are protected and

5 preserved;

6 ‘‘(IV) the per capita payments to

7 minors and other legally incompetent

8 persons are disbursed to the parents

9 or legal guardians of those minors or

10 legally incompetent persons in such

11 amounts as may be necessary for the

12 health, education, or welfare of each

13 such minor or legally incompetent per14 son under a plan approved by the Sec15 retary and the governing body of the

16 Indian tribe; and

17 ‘‘(V) the per capita payments are

18 subject to Federal income taxation for

19 individuals and Indian tribes withhold

20 those taxes when those payments are

21 made;

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

23 the Indian tribe for any class II gaming

24 operation owned by any person or entity
32

•S 1870 IS

1 other than the Indian tribe and conducted

2 on Indian lands, that includes—

3 ‘‘(I) requirements set forth in

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

5 the requirements of clauses

6 (vii)(II)(cc) and (x)); and

7 ‘‘(II) requirements that are at

8 least as restrictive as those established

9 by State law governing similar gaming

10 within the jurisdiction of the State

11 within which those Indian lands are

12 located; and

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

14 the Indian tribe, is eligible to receive a

15 tribal license for a class II gaming oper16 ation conducted on Indian lands within the

17 jurisdiction of the Indian tribe if that per18 son or entity would not be eligible to re19 ceive a State license to conduct the same

20 activity within the jurisdiction of the State.

21 ‘‘(B) TRANSITION.—

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

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

24 the continued operation of a class II gam25 ing operation described in clause (ix) of
33

•S 1870 IS

1 that subparagraph that was operating on

2 September 1, 1986, if—

3 ‘‘(I) that gaming operation is li4 censed and regulated by an Indian

5 tribe;

6 ‘‘(II) income to the Indian tribe

7 from that gaming is used only for the

8 purposes described in subparagraph

9 (A)(iii);

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

11 the net revenues from that gaming op12 eration is income to the licensing In13 dian tribe; and

14 ‘‘(IV) the owner of that gaming

15 operation pays an appropriate assess16 ment to the Commission pursuant to

17 section 14 for the regulation of that

18 gaming.

19 ‘‘(ii) LIMITATIONS ON EXEMPTION.—

20 The exemption from application provided

21 under clause (i) may not be transferred to

22 any person or entity and shall remain in

23 effect only during such period as the gam24 ing operation remains within the same na25 ture and scope as that gaming operation
34

•S 1870 IS

1 was actually operated on October 17,

2 1988.

3 ‘‘(C) LIST.—The Commission shall—

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

5 operation that is subject to subparagraph

6 (B); and

7 ‘‘(ii) publish that list in the Federal

8 Register.

9 ‘‘(c) PETITION FOR CERTIFICATE OF SELF-REGULA10 TION.—

11 ‘‘(1) IN GENERAL.—Any Indian tribe that oper12 ates, directly or with a management contract, a class

13 II gaming activity may petition the Commission for

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

15 ‘‘(A) has continuously conducted that gam16 ing activity for a period of not less than 3

17 years, including a period of not less than 1 year

18 that begins after the date of enactment of the

19 Indian Gaming Regulatory Improvement Act of

20 1998; and

21 ‘‘(B) has otherwise complied with the pro22 visions of this Act.

23 ‘‘(2) ISSUANCE OF CERTIFICATE OF SELF-REG24 ULATION.—The Commission shall issue a certificate

25 of self-regulation under this subsection if the Com-
35

•S 1870 IS

1 mission determines, on the basis of available infor2 mation, and after a hearing if requested by the In3 dian tribe, that the Indian tribe has—

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

5 manner that has—

6 ‘‘(i) resulted in an effective and hon7 est accounting of all revenues;

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

9 fair, and honest operation of the activity;

10 and

11 ‘‘(iii) been generally free of evidence

12 of criminal activity;

13 ‘‘(B) adopted and implemented adequate

14 systems for—

15 ‘‘(i) accounting for all revenues from

16 the gaming activity;

17 ‘‘(ii) investigation, licensing, and mon18 itoring of all employees of the gaming ac19 tivity; and

20 ‘‘(iii) investigation, enforcement, and

21 prosecution of violations of its gaming or22 dinance and regulations;

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

24 and economically sound basis; and
36

•S 1870 IS

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

2 the Indian tribe is required to pay to the Com3 mission under this Act.

4 ‘‘(3) EFFECT OF CERTIFICATE OF SELF-REGU5 LATION.—During the period in which a certificate of

6 self-regulation issued under this subsection is in ef7 fect with respect to a gaming activity conducted by

8 an Indian tribe—

9 ‘‘(A) the Indian tribe shall—

10 ‘‘(i) submit an annual independent

11 audit report as required by subsection

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

13 ‘‘(ii) submit to the Commission a com14 plete re ́sume ́ of each employee hired and li15 censed by the Indian tribe subsequent to

16 the issuance of a certificate of self-regula17 tion; and

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

19 under section 15 on gaming operated by the In20 dian tribe pursuant to paragraph (1) in excess

21 of 0.25 percent of the net revenue from that

22 class II gaming activity.

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

24 just cause and after a reasonable opportunity for a

25 hearing, rescind a certificate of self-regulation issued
37

•S 1870 IS

1 under this subsection by majority vote of the mem2 bers of the Commission.

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

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

5 Indian tribe receives reliable information from the Com6 mission indicating that a licensee does not meet any stand7 ard described in section 6(c) (that is established by the

8 Secretary under section 8), or any other applicable regula9 tion promulgated under this Act, the Indian tribe—

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

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

12 and making findings of fact under procedures estab13 lished pursuant to applicable tribal law, may revoke

14 that license.

15 ‘‘SEC. 10. CLASS III GAMING ON INDIAN LANDS.

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

17 III GAMING ON INDIAN LANDS.—

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

19 shall be lawful on Indian lands only if those activi20 ties are—

21 ‘‘(A) authorized by a compact that—

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

23 by the governing body of the Indian tribe

24 having jurisdiction over those lands;
38

•S 1870 IS

1 ‘‘(ii) meets the requirements of sec2 tion 9(b)(3) for the conduct of class II

3 gaming activities; and

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

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

6 gaming for any purpose by any person organi7 zation or entity; and

8 ‘‘(C) conducted in conformance with a

9 compact that—

10 ‘‘(i) is in effect; and

11 ‘‘(ii) is—

12 ‘‘(I) entered into by an Indian

13 tribe and a State and approved by the

14 Secretary under paragraph (2); or

15 ‘‘(II) issued by the Secretary

16 under paragraph (2).

17 ‘‘(2) COMPACT NEGOTIATIONS; APPROVAL.—

18 ‘‘(A) IN GENERAL.—

19 ‘‘(i) COMPACT NEGOTIATIONS.—Any

20 Indian tribe having jurisdiction over the

21 lands upon which a class III gaming activ22 ity is to be conducted may request the

23 State in which those lands are located to

24 enter into negotiations for the purpose of

25 entering into a compact with that State
39

•S 1870 IS

1 governing the conduct of class III gaming

2 activities.

3 ‘‘(ii) REQUIREMENTS FOR REQUEST

4 FOR NEGOTIATIONS.—A request for nego5 tiations under clause (i) shall be in writing

6 and shall specify each gaming activity that

7 the Indian tribe proposes for inclusion in

8 the compact. Not later than 30 days after

9 receipt of that written request, the State

10 shall respond to the Indian tribe.

11 ‘‘(iii) COMMENCEMENT OF COMPACT

12 NEGOTIATIONS.—Compact negotiations

13 conducted under this paragraph shall com14 mence not later than 30 days after the

15 date on which a response by a State is due

16 to the Indian tribe, and shall be completed

17 not later than 120 days after the initiation

18 of compact negotiations, unless the State

19 and the Indian tribe agree to a different

20 period of time for the completion of com21 pact negotiations.

22 ‘‘(B) NEGOTIATIONS.—

23 ‘‘(i) IN GENERAL.—The Secretary

24 shall, upon the request of an Indian tribe

25 described in subparagraph (A)(i) that has
40

•S 1870 IS

1 not reached an agreement with a State

2 concerning a compact referred to in that

3 subparagraph (or with respect to an Indian

4 tribe described in clause (ii)(I)(bb) a com5 pact) during the applicable period under

6 clause (ii) of this subparagraph, initiate a

7 mediation process to—

8 ‘‘(I) conclude a compact referred

9 to in subparagraph (A)(i); or

10 ‘‘(II) if necessary, provide for the

11 issuance of procedures by the Sec12 retary to govern the conduct of the

13 gaming referred to in that subpara14 graph.

15 ‘‘(ii) APPLICABLE PERIOD.—

16 ‘‘(I) IN GENERAL.—Subject to

17 subclause (II), the applicable period

18 described in this paragraph is—

19 ‘‘(aa) in the case of an In20 dian tribe that makes a request

21 for compact negotiations under

22 subparagraph (A), the 180-day

23 period beginning on the date on

24 which that Indian tribe makes

25 the request; and
41

•S 1870 IS

1 ‘‘(bb) in the case of an In2 dian tribe that makes a request

3 to renew a compact to govern

4 class III gaming activity on In5 dian lands of that Indian tribe

6 within the State that the Indian

7 tribe entered into prior to the

8 date of enactment of the Indian

9 Gaming Regulatory Improvement

10 Act of 1998, during the 60-day

11 period beginning on the date of

12 that request.

13 ‘‘(II) EXTENSION.—An Indian

14 tribe and a State may agree to extend

15 an applicable period under this para16 graph beyond the applicable termi17 nation date specified in item (aa) or

18 (bb) of subclause (I).

19 ‘‘(iii) MEDIATION.—

20 ‘‘(I) IN GENERAL.—The Sec21 retary shall initiate mediation to con22 clude a compact governing the con23 duct of class III gaming activities on

24 Indian lands upon a showing by an

25 Indian tribe that, within the applica-
42

•S 1870 IS

1 ble period specified in clause (ii), a

2 State has failed—

3 ‘‘(aa) to respond to a re4 quest by an Indian tribe for ne5 gotiations under this subpara6 graph; or

7 ‘‘(bb) to negotiate in good

8 faith.

9 ‘‘(II) EFFECT OF DECLINING NE10 GOTIATIONS.—The Secretary shall ini11 tiate mediation immediately after a

12 State declines to enter into negotia13 tions under this subparagraph, with14 out regard to whether the otherwise

15 applicable period specified in clause

16 (ii) has expired.

17 ‘‘(III) COPY OF REQUEST.—An

18 Indian tribe that requests mediation

19 under this clause shall provide the

20 State that is the subject of the medi21 ation request a copy of the mediation

22 request submitted to the Secretary.

23 ‘‘(IV) PANEL.—The Secretary, in

24 consultation with the Indian tribes

25 and States, shall establish a list of
43

•S 1870 IS

1 independent mediators, that the Sec2 retary, in consultation with the Indian

3 tribes and the States, shall periodi4 cally update.

5 ‘‘(V) NOTIFICATION BY STATE.—

6 Not later than 10 days after an In7 dian tribe makes a request to the Sec8 retary for mediation under subclause

9 (I), the State that is the subject of

10 the mediation request shall notify the

11 Secretary whether the State elects to

12 participate in the mediation process.

13 If the State elects to participate in the

14 mediation, the mediation shall be con15 ducted in accordance with subclause

16 (VI). If the State declines to partici17 pate in the mediation process, the

18 Secretary shall issue procedures under

19 clause (iv).

20 ‘‘(VI) MEDIATION PROCESS.—

21 ‘‘(aa) IN GENERAL.—Not

22 later than 20 days after a State

23 elects under subclause (V) to

24 participate in a mediation, the

25 Secretary shall submit to the In-
44

•S 1870 IS

1 dian tribe and the State the

2 names of 3 mediators randomly

3 selected by the Secretary from

4 the list of mediators established

5 under subclause (IV).

6 ‘‘(bb) SELECTION OF MEDI7 ATOR.—Not later than 10 days

8 after the Secretary submits the

9 mediators referred to in item

10 (aa), the Indian tribe and the

11 State may elect to have the Sec12 retary remove a mediator from

13 the mediators submitted. If the

14 parties referred to in the preced15 ing sentences fail to remove 2

16 mediators, the Secretary shall re17 move such names as may be nec18 essary to result in the removal of

19 2 mediators. The remaining me20 diator shall conduct the medi21 ation.

22 ‘‘(cc) INITIAL PERIOD OF

23 MEDIATION.—The mediator shall,

24 during the 60-day period begin25 ning on the date on which the
45

•S 1870 IS

1 mediator is selected under item

2 (bb) (or a longer period on the

3 agreement of the parties referred

4 to in that item for an extension

5 of the period) attempt to achieve

6 a compact.

7 ‘‘(dd) LAST-BEST-OFFER.—

8 If by the termination of the pe9 riod specified in item (cc), no

10 agreement for concluding a com11 pact is achieved by the parties to

12 the mediation, each such party

13 may, not later than 10 days after

14 that date, submit to the mediator

15 an offer that represents the best

16 offer that the party intends to

17 make for achieving an agreement

18 for concluding a compact (re19 ferred to in this item as a ‘last20 best-offer’). The mediator shall

21 review a last-best-offer received

22 under this item not later than 30

23 days after the date of submission

24 of the offer.
46

•S 1870 IS

1 ‘‘(ee) REPORT BY MEDI2 ATOR.—Not later than the date

3 specified for the completion of a

4 review of a last-best-offer under

5 item (dd), or in any case in

6 which either party in a mediation

7 fails to make such an offer, the

8 date that is 10 days after the ter9 mination of the initial period of

10 mediation under item (cc), the

11 mediator shall prepare and sub12 mit to the Secretary a report

13 that includes the contentions of

14 the parties, the conclusions of the

15 mediator concerning the permis16 sible scope of gaming on the In17 dian lands involved, and rec18 ommendations for the operation

19 and regulation of gaming on the

20 Indian lands in accordance with

21 this Act.

22 ‘‘(ff) FINAL DETERMINA23 TIONS.—Not later than 60 days

24 after receiving a report from a

25 mediator under item (ee), the
47

•S 1870 IS

1 Secretary shall make a final de2 termination concerning the oper3 ation and regulation of the class

4 III gaming that is the subject of

5 the mediation.

6 ‘‘(iv) PROCEDURES.—Subject to

7 clause (v), on the basis of a final deter8 mination described in clause (iii)(VI)(ff),

9 the Secretary shall issue procedures for the

10 operation and regulation of the class III

11 gaming described in that item by the date

12 that is 180 days after the date specified in

13 clause (iii)(V) or upon the determination

14 described in clause (iii)(iv)(ff).

15 ‘‘(v) PROHIBITION.—No compact ne16 gotiated, or procedures issued, under this

17 subparagraph shall require that a State

18 undertake any regulation of gaming on In19 dian lands unless—

20 ‘‘(I) the State affirmatively con21 sents to regulate that gaming; and

22 ‘‘(II) applicable State laws per23 mit that regulatory function.

24 ‘‘(C) MANDATORY DISAPPROVAL.—Not25 withstanding any other provision of this Act,
48

•S 1870 IS

1 the Secretary may not approve a compact if the

2 compact requires State regulation of Indian

3 gaming absent the consent of the State or the

4 Indian tribe.

5 ‘‘(D) EFFECTIVE DATE OF COMPACT OF

6 PROCEDURES.—Any compact negotiated, or

7 procedures issued, under this subsection shall

8 become effective upon the publication of the

9 compact or procedures in the Federal Register

10 by the Secretary.

11 ‘‘(E) EFFECT OF PUBLICATION OF COM12 PACT.—Except for an appeal conducted under

13 subchapter II of chapter 5 of title 5, United

14 States Code, by an Indian tribe or a State asso15 ciated with the compact, the publication of a

16 compact pursuant to subparagraph (B) shall,

17 for the purposes of this Act, be conclusive evi18 dence that the class III gaming subject to the

19 compact is an activity subject to negotiations

20 under the laws of the State where the gaming

21 is to be conducted, in any matter under consid22 eration by the Commission or a Federal court.

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

24 with the requirements of the standards de25 scribed in section 6(c) (that are established by
49

•S 1870 IS

1 the Secretary under section 8) and the require2 ments of section 7, the Commission shall mon3 itor and, if specifically authorized by those

4 standards and section 7, regulate and license

5 class III gaming with respect to any compact

6 that is approved by the Secretary under this

7 subsection and published in the Federal Reg8 ister.

9 ‘‘(3) PROVISIONS OF COMPACTS.—

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

11 under this subsection may only include provi12 sions relating to—

13 ‘‘(i) the application of the criminal

14 and civil laws (including regulations) of the

15 Indian tribe or the State that are directly

16 related to, and necessary for, the licensing

17 and regulation of that gaming activity in a

18 manner consistent with the requirements

19 of the standards described in section 6(c)

20 (that are established by the Secretary

21 under section 8) and section 7;

22 ‘‘(ii) the allocation of criminal and

23 civil jurisdiction between the State and the

24 Indian tribe necessary for the enforcement

25 of those laws (including regulations);
50

•S 1870 IS

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

2 the costs associated with those activities in

3 such amounts as are necessary to defray

4 the costs of regulating that activity;

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

6 that activity in amounts comparable to

7 amounts assessed by the State for com8 parable activities;

9 ‘‘(v) remedies for breach of compact

10 provisions;

11 ‘‘(vi) standards for the operation of

12 that activity and maintenance of the gam13 ing facility, including licensing, in a man14 ner consistent with the requirements of the

15 standards described in section 6(c) (that

16 are established by the Secretary under sec17 tion 8) and section 7; and

18 ‘‘(vii) any other subject that is di19 rectly related to the operation of gaming

20 activities.

21 ‘‘(B) STATUTORY CONSTRUCTION WITH

22 RESPECT TO ASSESSMENTS; PROHIBITION.—

23 ‘‘(i) STATUTORY CONSTRUCTION.—

24 Except for any assessments for services

25 agreed to by an Indian tribe in compact
51

•S 1870 IS

1 negotiations, nothing in this section may

2 be construed as conferring upon a State,

3 or any political subdivision thereof, the au4 thority to impose any tax, fee, charge, or

5 other assessment upon an Indian tribe, an

6 Indian gaming operation or the value gen7 erated by the gaming operation, or any

8 person or entity authorized by an Indian

9 tribe to engage in a class III gaming activ10 ity in conformance with this Act.

11 ‘‘(ii) ASSESSMENT BY STATES.—A

12 State may assess the assessments agreed

13 to by an Indian tribe referred to in clause

14 (i) in a manner consistent with that clause.

15 ‘‘(4) STATUTORY CONSTRUCTION WITH RE16 SPECT TO CERTAIN RIGHTS OF INDIAN TRIBES.—

17 Nothing in this subsection impairs the right of an

18 Indian tribe to regulate class III gaming on the In19 dian lands of the Indian tribe concurrently with a

20 State and the Commission, except to the extent that

21 such regulation is inconsistent with, or less stringent

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

23 made applicable by any compact entered into by the

24 Indian tribe under this subsection that is in effect.
52

•S 1870 IS

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

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

3 to as the ‘Gambling Devices Transportation Act’)

4 (64 Stat. 1134, chapter 1194; 15 U.S.C. 1175) shall

5 not apply to any class II gaming activity or any

6 gaming activity conducted pursuant to a compact

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

8 but in no event shall this paragraph be construed as

9 invalidating any exemption from the provisions of

10 such section 2 for any compact entered into prior to

11 the date of enactment of this Act.

12 ‘‘(b) JURISDICTION OF UNITED STATES DISTRICT

13 COURT FOR THE DISTRICT OF COLUMBIA.—The United

14 States District Court for the District of Columbia shall

15 have jurisdiction over any action initiated by the Sec16 retary, the Commission, a State, or an Indian tribe to en17 force any provision of a compact entered into under sub18 section (a) or to enjoin a class III gaming activity located

19 on Indian lands and conducted in violation of any compact

20 that is in effect and that was entered into under sub21 section (a).

22 ‘‘(c) APPROVAL OF COMPACTS.—

23 ‘‘(1) IN GENERAL.—The Secretary may approve

24 any compact between an Indian tribe and a State

25 governing the conduct of class III gaming on Indian
53

•S 1870 IS

1 lands of that Indian tribe entered into under sub2 section (a).

3 ‘‘(2) REASONS FOR DISAPPROVAL BY SEC4 RETARY.—The Secretary may disapprove a compact

5 entered into under subsection (a) only if that com6 pact violates any—

7 ‘‘(A) provision of this Act or any regula8 tion promulgated by the Commission pursuant

9 to this Act;

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

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

12 to Indians.

13 ‘‘(3) EFFECT OF FAILURE TO ACT ON COM14 PACT.—If the Secretary fails to approve or dis15 approve a compact entered into under subsection (a)

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

17 which the compact is submitted to the Secretary for

18 approval, the compact shall be considered to have

19 been approved by the Secretary, but only to the ex20 tent the compact is consistent with the provisions of

21 this Act and the regulations promulgated by the

22 Commission pursuant to this Act.

23 ‘‘(4) NOTIFICATION.—The Secretary shall pub24 lish in the Federal Register notice of any compact
54

•S 1870 IS

1 that is approved, or considered to have been ap2 proved, under this subsection.

3 ‘‘(d) 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. That revocation

9 shall render class III gaming illegal on the Indian

10 lands of that 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. The Commission shall publish that ordi15 nance or resolution in the Federal Register. The rev16 ocation provided by that ordinance or resolution

17 shall take effect on the date of that publication.

18 ‘‘(3) CONDITIONAL OPERATION.—Notwithstand19 ing any other provision of this subsection—

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

21 III gaming activity pursuant to this Act on the

22 date on which an ordinance or resolution de23 scribed in paragraph (1) that revokes author24 ization for that class III gaming activity is pub25 lished in the Federal Register may, during the
55

•S 1870 IS

1 1-year period beginning on the date on which

2 that revocation, ordinance, or resolution is pub3 lished under paragraph (2), continue to operate

4 that activity in conformance with an applicable

5 compact entered into under subsection (a) that

6 is in effect; and

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

8 and any crime that is committed before, the

9 termination of that 1-year period shall not be

10 affected by that revocation ordinance, or resolu11 tion.

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

13 ‘‘(1) COMPACTS ENTERED INTO BEFORE THE

14 DATE OF ENACTMENT OF THE INDIAN GAMING REG15 ULATORY IMPROVEMENT ACT OF 1998.—Class III

16 gaming activities that are authorized under a com17 pact approved or issued by the Secretary under the

18 authority of this Act prior to the date of enactment

19 of the Indian Gaming Regulatory Improvement Act

20 of 1998 shall, during such period as the compact is

21 in effect, remain lawful for the purposes of this Act,

22 notwithstanding the Indian Gaming Regulatory Im23 provement Act of 1998 and the amendments made

24 by that Act or any change in State law, other than

25 a change in State law that constitutes a change in
56

•S 1870 IS

1 the public policy of the State with respect to permit2 ting or prohibiting class III gaming in the State.

3 ‘‘(2) COMPACT ENTERED INTO AFTER THE

4 DATE OF ENACTMENT OF THE INDIAN GAMING REG5 ULATORY IMPROVEMENT ACT OF 1998.—Any com6 pact entered into under subsection (a) after the date

7 specified in paragraph (1) shall remain lawful for

8 the purposes of this Act, notwithstanding any

9 change in State law, other than a change in State

10 law that constitutes a change in the public policy of

11 the State with respect to permitting or prohibiting

12 class III gaming in the State.

13 ‘‘SEC. 11. REVIEW OF CONTRACTS.

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

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

16 or disapprove any management contract for the operation

17 and management of any gaming activity that an Indian

18 tribe may engage in under this Act.

19 ‘‘(b) MANAGEMENT CONTRACT REQUIREMENTS.—

20 The Commission shall approve any management contract

21 between an Indian tribe and a person licensed by an In22 dian tribe or the Commission that is entered into pursuant

23 to this Act only if the Commission determines that the

24 contract provides for—
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•S 1870 IS

1 ‘‘(1) adequate accounting procedures that are

2 maintained, and verifiable financial reports that are

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

4 tribe on a monthly basis;

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

6 appropriate officials of the Indian tribe who shall

7 have the right to verify the daily gross revenues and

8 income derived from any gaming activity;

9 ‘‘(3) a minimum guaranteed payment to the In10 dian tribe that has preference over the retirement of

11 any development and construction costs;

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

13 of any development and construction costs;

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

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

16 Commission may authorize a contract term that ex17 ceeds 5 years but does not exceed 7 years if the

18 Commission is satisfied that the capital investment

19 required, and the income projections for, the par20 ticular gaming activity require the additional time;

21 and

22 ‘‘(6) grounds and mechanisms for the termi23 nation of the contract, but any such termination

24 shall not require the approval of the Commission.
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1 ‘‘(c) MANAGEMENT FEE BASED ON PERCENTAGE OF

2 NET REVENUES.—

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

4 approve a management contract that provides for a

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

6 of a tribal gaming activity if the Commission deter7 mines that such percentage fee is reasonable, taking

8 into consideration surrounding circumstances.

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

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

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

12 revenues described in that paragraph.

13 ‘‘(3) EXCEPTION.—Upon the request of an In14 dian tribe, if the Commission is satisfied that the

15 capital investment required, and income projections

16 for, a tribal gaming activity, necessitate a fee in ex17 cess of the amount specified in paragraph (2), the

18 Commission may approve a management contract

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

20 an amount in excess of the amount specified in para21 graph (2), but not to exceed 40 percent of the net

22 revenues described in paragraph (1).

23 ‘‘(d) TIME PERIOD FOR REVIEW.—

24 ‘‘(1) IN GENERAL.—Except as provided in para25 graph (2), not later than 90 days after the date on
59

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1 which a management contract is submitted to the

2 Commission for approval, the Commission shall ap3 prove or disapprove that contract on the merits of

4 the contract.

5 ‘‘(2) EXTENSION.—The Commission may ex6 tend the 90-day period for an additional period of

7 not more than 45 days if the Commission notifies

8 the Indian tribe in writing of the reason for the ex9 tension of the period.

10 ‘‘(3) ACTION.—The Indian tribe may bring an

11 action in the United States District Court for the

12 District of Columbia to compel action by the Com13 mission if a contract has not been approved or dis14 approved by the termination date of an applicable

15 period under this subsection.

16 ‘‘(e) CONTRACT MODIFICATIONS AND VOID CON17 TRACTS.—The Commission, after providing notice and a

18 hearing on the record—

19 ‘‘(1) shall have the authority to require appro20 priate contract modifications to ensure compliance

21 with the provisions of this Act; and

22 ‘‘(2) may declare invalid any contract regulated

23 by the Commission under this Act if the Commission

24 determines that any provision of this Act has been

25 violated by the terms of the contract.
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1 ‘‘(f) INTERESTS IN REAL PROPERTY.—No contract

2 regulated by this Act may transfer or, in any other man3 ner, convey any interest in land or other real property,

4 unless—

5 ‘‘(1) specific statutory authority exists;

6 ‘‘(2) all necessary approvals for the transfer or

7 conveyance have been obtained; and

8 ‘‘(3) the transfer or conveyance is clearly speci9 fied in the contract.

10 ‘‘(g) AUTHORITY OF THE SECRETARY.—The author11 ity of the Secretary under section 2103 of the Revised

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

13 or agreement that is regulated pursuant to this Act.

14 ‘‘(h) DISAPPROVAL OF CONTRACTS.—The Commis15 sion may not approve a management contract or other

16 gaming-related contract if the Commission determines

17 that—

18 ‘‘(1) any person having a direct financial inter19 est in, or management responsibility for, that con20 tract, and, in the case of a corporation, any individ21 ual who serves on the board of directors of that cor22 poration, and any of the stockholders who hold (di23 rectly or indirectly) 10 percent or more of its issued

24 and outstanding stock—
61

•S 1870 IS

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

2 body of the Indian tribe that is a party to the

3 contract;

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

5 gaming offense;

6 ‘‘(C) has knowingly and willfully provided

7 materially important false statements or infor8 mation to the Commission or the Indian tribe

9 pursuant to this Act or has refused to respond

10 to questions propounded by the Commission; or

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

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

13 reputation, habits, and associations pose a

14 threat to the public interest or to the effective

15 regulation and control of gaming, or create or

16 enhance the dangers of unsuitable, unfair, or il17 legal practices, methods, and activities in the

18 conduct of gaming or the carrying on of the

19 business and financial arrangements incidental

20 thereto;

21 ‘‘(2) the contractor—

22 ‘‘(A) has unduly interfered or influenced

23 for its gain or advantage any decision or proc24 ess of tribal government relating to the gaming

25 activity; or
62

•S 1870 IS

1 ‘‘(B) has attempted to interfere or influ2 ence a decision pursuant to subparagraph (A);

3 ‘‘(3) the contractor has deliberately or substan4 tially failed to comply with the terms of the contract;

5 or

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

7 that a trustee is commonly held to, would not ap8 prove the contract.

9 ‘‘SEC. 12. CIVIL PENALTIES.

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

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

12 this Act or any rule or regulation promulgated under this

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

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

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

16 equal to not more than $25,000 per day for each such

17 violation.

18 ‘‘(b) ASSESSMENT AND COLLECTION.—

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

20 under this section shall be assessed by the Commis21 sion and collected in a civil action brought by the

22 Attorney General on behalf of the United States.

23 Before the Commission refers civil penalty claims to

24 the Attorney General, the Commission may com25 promise the civil penalty after affording the person
63

•S 1870 IS

1 charged with a violation referred to in subsection

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

3 support of that action by the Commission to estab4 lish that the alleged violation did not occur.

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

6 amount of a civil penalty assessed under this section,

7 the Commission shall take into account—

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

9 and gravity of the violation committed;

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

11 have committed that violation, the degree of

12 culpability, any history of prior violations, abil13 ity to pay, and the effect on ability to continue

14 to do business; and

15 ‘‘(C) such other matters as justice may re16 quire.

17 ‘‘(c) TEMPORARY CLOSURES.—

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

19 the temporary closure of all or part of an Indian

20 gaming operation for a substantial violation of any

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

22 ‘‘(2) HEARING ON ORDER OF TEMPORARY CLO23 SURE.—

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

25 days after the issuance of an order of tem-
64

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1 porary closure, the Indian tribe or the individ2 ual owner of a gaming operation shall have the

3 right to request a hearing on the record before

4 the Commission to determine whether that

5 order should be made permanent or dissolved.

6 ‘‘(B) DEADLINES RELATING TO HEAR7 ING.—Not later than 30 days after a request

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

9 the Commission shall conduct that hearing. Not

10 later than 30 days after the termination of the

11 hearing, the Commission shall render a final de12 cision on the closure.

13 ‘‘SEC. 13. JUDICIAL REVIEW.

14 ‘‘A decision made by the Commission pursuant to sec15 tion 6, 7, 11, or 12 shall constitute a final agency decision

16 for purposes of appeal to the United States District Court

17 for the District of Columbia pursuant to chapter 7 of title

18 5, United States Code.’’;

19 (6) by redesignating sections 18 and 19 as sec20 tions 14 and 15, respectively;

21 (7) in section 14, as redesignated—

22 (A) in subsection (a)—

23 (i) by striking paragraphs (3) through

24 (6);
65

•S 1870 IS

1 (ii) by redesignating paragraph (2) as

2 paragraph (3);

3 (iii) by striking ‘‘(a)(1) The Commis4 sion’’ and inserting the following:

5 ‘‘(2) MINIMUM FEES.—The Commission’’;

6 (iv) by inserting before paragraph (2)

7 the following:

8 ‘‘(a) ANNUAL FEES.—

9 ‘‘(1) MINIMUM REGULATORY FEES.—In addi10 tion to assessing fees pursuant to a schedule estab11 lished under paragraph (2), the Commission shall re12 quire each gaming operation that conducts a class II

13 or class III gaming activity that is regulated by this

14 Act to pay to the Commission, on a quarterly basis,

15 a minimum fee in an amount equal to $250.’’; and

16 (v) in paragraph (3), as redesignated,

17 by striking subparagraphs (B) and (C) and

18 inserting the following:

19 ‘‘(B) GRADUATED FEE LIMITATION.—

20 ‘‘(i) IN GENERAL.—The aggregate

21 amount of fees collected under this para22 graph shall not exceed—

23 ‘‘(I) $8,000,000 for fiscal year

24 1999;
66

•S 1870 IS

1 ‘‘(II) $9,000,000 for fiscal year

2 2000; and

3 ‘‘(III) $11,000,000 for fiscal year

4 2001, and for each fiscal year there5 after.

6 ‘‘(C) FACTORS FOR CONSIDERATION.—

7 ‘‘(i) IN GENERAL.—The aggregate

8 amount of fees assessed under this section

9 shall be reasonably related to the costs of

10 services provided by the Commission to In11 dian tribes under this Act (including the

12 cost of issuing regulations necessary to

13 carry out this Act). In assessing and col14 lecting fees under this section, the Com15 mission shall take into account all of the

16 duties of, and services provided by, the

17 Commission under this Act.

18 ‘‘(ii) FACTORS FOR CONSIDER19 ATION.—In determining the amount of fees

20 to be assessed against class II or class III

21 gaming activities regulated by this Act, the

22 Commission shall consider the extent of

23 regulation of gaming activities by States

24 and Indian tribes and shall, if appropriate,
67

•S 1870 IS

1 reduce or eliminate the fees authorized by

2 this section.

3 ‘‘(iii) CONSULTATION.—In establish4 ing any schedule of fees under this sub5 section, the Commission shall consult with

6 Indian tribes.

7 ‘‘(4) TRUST FUND.—

8 ‘‘(A) ESTABLISHMENT.—There is estab9 lished in the Treasury of the United States a

10 fund to be known as the Indian Gaming Trust

11 Fund (referred to in this paragraph as the

12 ‘Trust Fund’), consisting of—

13 ‘‘(i) such amounts as are—

14 ‘‘(I) transferred to the Trust

15 Fund under subparagraph (B)(i); or

16 ‘‘(II) appropriated to the Trust

17 Fund; and

18 ‘‘(ii) any interest earned on the in19 vestment of amounts in the Trust Fund

20 under subparagraph (C).

21 ‘‘(B) TRANSFER OF AMOUNTS EQUIVA22 LENT TO FEES.—

23 ‘‘(i) IN GENERAL.—The Secretary of

24 the Treasury shall transfer to the Trust

25 Fund an amount equal to the aggregate
68

•S 1870 IS

1 amount of fees collected under this sub2 section.

3 ‘‘(ii) TRANSFERS BASED ON ESTI4 MATES.—The amounts required to be

5 transferred to the Trust Fund under

6 clause (i) shall be transferred at least

7 quarterly from the general fund of the

8 Treasury to the Trust Fund on the basis

9 of estimates made by the Secretary of the

10 Treasury. Proper adjustment shall be

11 made in amounts subsequently transferred

12 to the extent prior estimates were in excess

13 of or less than the amounts required to be

14 transferred.

15 ‘‘(C) INVESTMENTS.—

16 ‘‘(i) IN GENERAL.—It shall be the

17 duty of the Secretary of the Treasury to

18 invest such portion of the Trust Fund as

19 is not, in the judgment of the Secretary of

20 the Treasury, required to meet current

21 withdrawals. The Secretary of the Treas22 ury shall invest the amounts deposited

23 under subparagraph (A) only in interest24 bearing obligations of the United States or
69

•S 1870 IS

1 in obligations guaranteed as to both prin2 cipal and interest by the United States.

3 ‘‘(ii) SALE OF OBLIGATIONS.—Any

4 obligation acquired by the Trust Fund, ex5 cept special obligations issued exclusively

6 to the Trust Fund, may be sold by the

7 Secretary of the Treasury at the market

8 price, and such special obligations may be

9 redeemed at par plus accrued interest.

10 ‘‘(iii) CREDITS TO TRUST FUND.—The

11 interest on, and proceeds from, the sale or

12 redemption of, any obligations held in the

13 Trust Fund shall be credited to and form

14 a part of the Trust Fund.

15 ‘‘(D) EXPENDITURES FROM TRUST

16 FUND.—

17 ‘‘(i) IN GENERAL.—Amounts in the

18 Trust Fund shall be available, as provided

19 in appropriations Acts, to the Commission

20 for carrying out the duties of the Commis21 sion under this Act.

22 ‘‘(ii) WITHDRAWAL AND TRANSFER

23 OF FUNDS.—Upon request of the Commis24 sion, the Secretary of the Treasury shall

25 withdraw amounts from the Trust Fund
70

•S 1870 IS

1 and transfer such amounts to the Commis2 sion for use in accordance with clause (i).

3 ‘‘(E) LIMITATION ON TRANSFERS AND

4 WITHDRAWALS.—Except as provided in sub5 paragraph (D)(ii), the Secretary of the Treas6 ury may not transfer or withdraw any amount

7 deposited under subparagraph (A).

8 ‘‘(5) CONSEQUENCES OF FAILURE TO PAY

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

10 schedule established under paragraph (2) shall, sub11 ject to regulations promulgated by the Commission,

12 be grounds for revocation of the approval of the

13 Commission of any license required under this Act

14 for the operation of gaming activities.

15 ‘‘(6) CREDIT.—To the extent that revenue de16 rived from fees imposed under the schedule estab17 lished under paragraph (2) are not expended or

18 committed at the close of any fiscal year, those sur19 plus funds shall be credited to each gaming activity

20 on a pro rata basis against the fees imposed under

21 that schedule for the succeeding fiscal year.

22 ‘‘(7) GROSS REVENUES.—For purposes of this

23 section, gross revenues shall constitute the annual

24 total amount of money wagered, reduced by—
71

•S 1870 IS

1 ‘‘(A) any amounts paid out as prizes or

2 paid for prizes awarded; and

3 ‘‘(B) allowance for amortization of capital

4 expenditures for structures.’’; and

5 (B) by striking subsection (b) and insert6 ing the following:

7 ‘‘(b) REIMBURSEMENT OF COSTS.—

8 ‘‘(1) CONTENTS OF BUDGET.—For fiscal year

9 1999, and for each fiscal year thereafter, the budget

10 of the Commission may include a request for appro11 priations, as authorized by section 15, in an amount

12 equal to the sum of—

13 ‘‘(A)(i) for fiscal year 1999, an estimate

14 (determined by the Commission) of the amount

15 of funds to be derived from the fees collected

16 under subsection (a) for that fiscal year; or

17 ‘‘(ii) for each fiscal year thereafter, the

18 amount of funds derived from the fees collected

19 under subsection (a) for the fiscal year preced20 ing the fiscal year for which the appropriation

21 request is made; and

22 ‘‘(B) $1,000,000.

23 ‘‘(2) BUDGET REQUEST OF THE DEPARTMENT

24 OF THE INTERIOR.—Each request for appropriations

25 made under paragraph (1) shall—
72

•S 1870 IS

1 ‘‘(A) be subject to the approval of the Sec2 retary; and

3 ‘‘(B) be part of a request made by the Sec4 retary to the President for inclusion in the an5 nual budget request submitted by the President

6 to Congress under section 1105(a) of title 31,

7 United States Code.’’;

8 (8) in section 15, as redesignated, by striking

9 ‘‘section 18’’ each place it appears and inserting

10 ‘‘section 14’’;

11 (9) by striking section 17 and inserting the fol12 lowing:

13 ‘‘SEC. 16. APPLICATION OF INTERNAL REVENUE CODE OF

14 1986; ACCESS TO INFORMATION BY STATES

15 AND TRIBAL GOVERNMENTS.

16 ‘‘(a) APPLICATION OF THE INTERNAL REVENUE

17 CODE OF 1986.—

18 ‘‘(1) IN GENERAL.—The provisions of the Inter19 nal Revenue Code of 1986 (including sections 1441,

20 3402(q), and 6041, and chapter 35 of such Code)

21 concerning the reporting and withholding of taxes

22 with respect to the winnings from gaming or wager23 ing operations shall apply to Indian gaming oper24 ations conducted pursuant to this Act, or under a

25 compact entered into under section 10 that is in ef-
73

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1 fect, in the same manner as those provisions apply

2 to State gaming and wagering operations. Any ex3 emptions to States with respect to taxation of those

4 gaming or wagering operations shall be allowed to

5 Indian tribes.

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

7 6050I of the Internal Revenue Code of 1986 shall

8 apply to an Indian gaming establishment that is not

9 designated by the Secretary of the Treasury as a

10 financial institution pursuant to chapter 53 of title

11 31, United States Code.

12 ‘‘(3) STATUTORY CONSTRUCTION.—This sub13 section shall apply notwithstanding any other provi14 sion of law enacted before the date of enactment of

15 this Act unless that other provision of law specifi16 cally cites this subsection.

17 ‘‘(b) ACCESS TO INFORMATION BY STATE AND TRIB18 AL GOVERNMENTS.—Subject to section 6(d), upon the re19 quest of a State or the governing body of an Indian tribe,

20 the Commission shall make available any law enforcement

21 information that it has obtained pursuant to such section,

22 unless otherwise prohibited by law, in order to enable the

23 State or the Indian tribe to carry out its responsibilities

24 under this Act or any compact approved by the Secretary.
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1 ‘‘SEC. 17. GAMING PROSCRIBED ON LANDS ACQUIRED IN

2 TRUST AFTER THE DATE OF ENACTMENT OF

3 THIS ACT.

4 ‘‘(a) IN GENERAL.—Except as provided in subsection

5 (b), gaming regulated by this Act shall not be conducted

6 on lands acquired by the Secretary in trust for the benefit

7 of an Indian tribe after the date of enactment of this Act,

8 unless—

9 ‘‘(1) those lands are located within or contig10 uous to the boundaries of the reservation of the In11 dian tribe on the date of enactment of this Act; or

12 ‘‘(2) the Indian tribe has no reservation on the

13 date of enactment of this Act and those lands are

14 located in the State of Oklahoma and—

15 ‘‘(A) are within the boundaries of the

16 former reservation of the Indian tribe, as de17 fined by the Secretary; or

18 ‘‘(B) are contiguous to other land held in

19 trust or restricted status by the United States

20 for the Indian tribe in the State of Oklahoma.

21 ‘‘(b) EXEMPTION.—Subsection (a) shall not apply

22 to—

23 ‘‘(1) any lands involved in the trust petition of

24 the St. Croix Chippewa Indians of Wisconsin that is

25 the subject of the action filed in the United States

26 District Court for the District of Columbia entitled
75

•S 1870 IS

1 St. Croix Chippewa Indians of Wisconsin v. United

2 States, Civ. No. 86–2278; or

3 ‘‘(2) the interests of the Miccosukee Tribe of

4 Indians of Florida in approximately 25 contiguous

5 acres of land, more or less, in Dade County, Florida,

6 located within 1 mile of the intersection of State

7 road numbered 27 (also known as Krome Avenue)

8 and the Tamiami Trail; or

9 ‘‘(3) where the use of such lands for gaming

10 purposes is provided for in a tribal-state compact de11 scribed in section 10(a)(1)(C)(ii)(I) or a tribal-state

12 agreement specifically providing for the use of such

13 lands for gaming purposes.’’.

14 (10) by striking section 20;

15 (11) by redesignating sections 21 through 23 as

16 sections 18 through 20, respectively; and

17 (12) by redesignating section 24 as section 21.

18 SEC. 3. LIMITATION ON LOBBYING.

19 Section 104 of the Indian Self-Determination and

20 Education Assistance Act (25 U.S.C. 450i) is amended by

21 inserting after subsection (j) the following:

22 ‘‘(k) LOBBYING LIMITATION.—Notwithstanding sub23 section (j), except as otherwise provided in sections 205

24 and 207 of title 18, United States Code, a former Federal

25 officer or employee of the United States shall not act as
76

•S 1870 IS

1 an agent or attorney for, or appear on behalf of, a client

2 in connection with any specific matter or decision involv3 ing the Indian Gaming Regulatory Act (25 U.S.C. 2701

4 et seq.) in any matter in which the officer or employee

5 of the United States had personal and substantial involve6 ment while an officer of the United States.’’.

7 SEC. 4. DEFINITION OF FINANCIAL INSTITUTIONS.

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

9 is amended—

10 (1) by redesignating subparagraphs (Y) and (Z)

11 as subparagraphs (Z) and (AA), respectively; and

12 (2) by inserting after subparagraph (X) the fol13 lowing new subparagraph:

14 ‘‘(Y) an Indian gaming establishment;’’.

15 SEC. 5. CONFORMING AMENDMENTS.

16 (a) TITLE 10.—Section 2323a(e)(1) of title 10,

17 United States Code, is amended by striking ‘‘section 4(4)

18 of the Indian Gaming Regulatory Act (102 Stat. 2468;

19 25 U.S.C. 2703(4))’’ and inserting ‘‘section 4(12) of the

20 Indian Gaming Regulatory Act’’.

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

22 amended—

23 (1) in section 1166—

24 (A) in subsection (c)(2), by striking ‘‘a

25 Tribal-State compact approved by the Secretary
77

•S 1870 IS

1 of the Interior under section 11(d)(8) of the In2 dian Gaming Regulatory Act that is in effect’’

3 and inserting ‘‘a compact approved by the Sec4 retary of the Interior under section 10(c) of the

5 Indian Gaming Regulatory Act that is in effect

6 or pursuant to procedures issued by the Sec7 retary of the Interior under section

8 10(a)(2)(B)(iv) of such Act’’; and

9 (B) in subsection (d), by striking ‘‘a Trib10 al-State compact approved by the Secretary of

11 the Interior under section 11(d)(8) of the In12 dian Gaming Regulatory Act’’ and inserting ‘‘a

13 compact approved by the Secretary of the Inte14 rior under section 10(c) of the Indian Gaming

15 Regulatory Act or pursuant to procedures

16 issued by the Secretary of the Interior under

17 section 10(a)(2)(B)(iv) of such Act,’’;

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

19 ordinance or resolution approved by the National In20 dian Gaming Commission’’ and inserting ‘‘pursuant

21 to an ordinance or resolution that meets the applica22 ble requirements under the Indian Gaming Regu23 latory Act (25 U.S.C. 2701 et seq.)’’; and

24 (3) in section 1168, by striking ‘‘pursuant to an

25 ordinance or resolution approved by the National In-
78

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1 dian Gaming Commission’’ and inserting ‘‘pursuant

2 to an ordinance or resolution that meets the applica3 ble requirements under the Indian Gaming Regu4 latory Act (25 U.S.C. 2701 et seq.)’’.

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

6 168(j)(4)(A)(iv) of the Internal Revenue Code of 1986 is

7 amended by striking ‘‘Indian Regulatory Act’’ and insert8 ing ‘‘Indian Gaming Regulatory Act’’.

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

10 amended—

11 (1) in section 3701(2)—

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

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

14 and inserting ‘‘section 4(11) of the Indian

15 Gaming Regulatory Act’’; and

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

17 (25 U.S.C. 2703(4))’’ and inserting ‘‘section

18 4(10) of such Act’’; and

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

20 of the Indian Gaming Regulatory Act’’ and inserting

21 ‘‘section 4(10) of the Indian Gaming Regulatory

22 Act’’.

Æ