I

103D CONGRESS

2D SESSION H. R. 2287

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

IN THE HOUSE OF REPRESENTATIVES

MAY 26, 1993

Mr. TORRICELLI (for himself, Mr. BILBRAY, Mr. CALVERT, Mr. HOAGLAND,

Mr. REED, Mr. STUMP, and Mrs. VUCANOVICH) introduced the following

bill; which was referred jointly to the Committees on Natural Resources

and the Judiciary

MAY 2, 1994

Additional sponsors: Mr. LANCASTER, Mr. SOLOMON, Mrs. ROUKEMA, Mr.

LEWIS of California, Mr. BAESLER, Mr. PAXON, Mr. ZELIFF, Mr. SENSENBRENNER, Mr. MENENDEZ, Mr. BACCHUS of Florida, Mrs. FOWLER,

and Mrs. MALONEY

Deleted sponsor: Mr. HOAGLAND (added May 26, 1993; deleted November 18,

1993)

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 ‘‘Gaming Integrity and

5 State Law Enforcement Act of 1993’’.
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1 SEC. 2. FINDINGS AND DECLARATION OF POLICY.

2 (a) FINDINGS.—Section 2(5) of the Indian Gaming

3 Regulatory Act (25 U.S.C. 2701(5)) is amended by insert4 ing ‘‘subject to the provisions of this Act’’ after ‘‘Indian

5 lands’’.

6 (b) POLICY.—Section 3(2) of such Act (25 U.S.C.

7 2702(2)) is amended by striking ‘‘by an Indian tribe’’.

8 SEC. 3. DEFINITIONS.

9 (a) INDIAN LANDS.—Section 4(4) of the Indian Gam10 ing Regulatory Act (25 U.S.C. 2703(4)) is amended to

11 read as follows:

12 ‘‘(4) The term ‘Indian lands’ means lands over which

13 an Indian tribe exercises governmental power, and which

14 are located—

15 ‘‘(A) within the exterior boundaries of an In16 dian reservation and held in fee by the Indian tribe

17 for which such lands have been reserved;

18 ‘‘(B) within the exterior boundaries of the res19 ervation title to which is either held in trust by the

20 United States for the benefit of an Indian tribe or

21 member of such tribe or held by an Indian tribe or

22 member of such tribe subject to restriction by the

23 United States against alienation; or

24 ‘‘(C) outside the exterior boundaries of a recog25 nized reservation, as such boundaries existed on Oc26 tober 17, 1988, title to which is either held in trust
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1 by the United States for the benefit of an Indian

2 tribe or held by an Indian tribe subject to restriction

3 by the United States against alienation.’’.

4 (b) INDIAN TRIBE.—Section 4(5)(A) of such Act (25

5 U.S.C. 2703(5)(A)) is amended by inserting ‘‘before the

6 date of the enactment of this Act’’ after ‘‘recognized’’.

7 (c) CLASS III GAMING.—Section 4 of such Act (25

8 U.S.C. 2703) is amended—

9 (1) in paragraph (7)(A)(i)—

10 (A) in the matter preceding subclause (I),

11 by inserting after ‘‘therewith)’’ the following:

12 ‘‘except video bingo’’;

13 (B) in subclause (I), by inserting ‘‘(but not

14 limited to’’ after ‘‘including’’; and

15 (C) in the matter following subclause (III),

16 by inserting ‘‘, but not limited to,’’ after ‘‘loca17 tion)’’;

18 (2) in paragraph (7)(A)(ii)(II), by striking ‘‘re19 garding’’ and inserting ‘‘including (but not limited

20 to)’’;

21 (3) in paragraph (7)(B)(i), by inserting ‘‘(but

22 not limited to) house banking card games, pari23 mutuel wagering, casino games played with dice,

24 wheels and similar gaming equipment,’’ after ‘‘in25 cluding’’; and
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1 (4) in paragraph (8), by inserting before the pe2 riod at the end the following: ‘‘including (but not

3 limited to) slot machines, electronic or

4 electromechanical facsimiles of any game of chance,

5 and any and all forms of electronic video games or

6 devices, such as video bingo, video pull-tabs, video

7 keno, and video blackjack’’.

8 (d) SLOT MACHINE.—Section 4 of such Act (25

9 U.S.C. 2703) is amended by adding at the end thereof

10 the following:

11 ‘‘(11) The term ‘slot machine’ means any me12 chanical, electrical, or other device, contrivance, or

13 machine which, upon insertion of a coin, token, or

14 similar object therein, or upon payment of any con15 sideration whatsoever, is available to play or operate,

16 the play or operation of which, whether by reason of

17 the skill of the operator or application of the element

18 of chance, or both, may deliver or entitle the person

19 playing or operating the machine to receive cash or

20 tokens to be exchanged for cash or to receive mer21 chandise or any thing of value whatsoever, whether

22 the payoff is made automatically from the machine

23 or in any other manner whatsoever, including (but

24 not limited to) any and all forms of electronic video
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1 games or devices such as video poker, video bingo,

2 video pull-tabs, video keno, and video blackjack.’’.

3 SEC. 4. NATIONAL INDIAN GAMING COMMISSION.

4 (a) ADDITIONAL MEMBERS.—Section 5(b)(1) of the

5 Indian Gaming Regulatory Act (25 U.S.C. 2704(b)(1)) is

6 amended—

7 (1) in the matter preceding subparagraph (A),

8 by striking ‘‘three’’ and inserting ‘‘five’’;

9 (2) in subparagraph (A), by striking ‘‘and’’;

10 (3) in subparagraph (B), by striking the period

11 at the end and inserting ‘‘; and’’; and

12 (4) by adding at the end the following:

13 ‘‘(C) two associate members who shall be

14 appointed by the President, with the advice and

15 consent of the Senate, from among State offi16 cials.’’.

17 (b) COMPOSITION.—Section 5(b)(3) of such Act (25

18 U.S.C. 2704(b)(3)) is amended in the first sentence by

19 striking ‘‘two’’ and inserting ‘‘three’’.

20 (c) QUORUM.—Section 5(d) of such Act (25 U.S.C.

21 2704(d)) is amended by striking ‘‘two’’ and inserting

22 ‘‘three’’.
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1 SEC. 5. TRANSFER OF CERTAIN POWERS OF THE CHAIR2 MAN TO THE COMMISSION.

3 (a) POWERS OF CHAIRMAN.—Section 6(a) of the In4 dian Gaming Regulatory Act (25 U.S.C. 2705(a)) is

5 amended—

6 (1) by striking the semicolon at the end of

7 paragraph (2) and inserting a period; and

8 (2) by striking paragraphs (3) and (4).

9 (b) POWERS OF COMMISSION.—Section 7(a) of such

10 Act (25 U.S.C. 2706(a)) is amended—

11 (1) in paragraph (4), by striking ‘‘; and’’;

12 (2) in paragraph (5), by striking the period and

13 inserting ‘‘; and’’; and

14 (3) by adding at the end the following:

15 ‘‘(6) by an affirmative vote of not less than 3

16 members, approve tribal ordinances or resolutions

17 regulating class II gaming and class III gaming as

18 provided in section 11; and

19 ‘‘(7) by an affirmative vote of not less than 3

20 members, approve management contracts for class II

21 gaming and class III gaming as provided in sections

22 11(d)(9) and 12.’’.

23 (c) REPORT.—Section 7(c) of such Act (25 U.S.C.

24 2706(c)) is amended—
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1 (1) in the matter preceding paragraph (1), by

2 inserting ‘‘(but not be limited to)’’ after ‘‘include’’;

3 and

4 (2) in paragraph (2), by inserting ‘‘(but not

5 limited to)’’ after ‘‘including’’.

6 (d) CONFORMING AMENDMENTS.—Such Act is

7 amended—

8 (1) in section 11(b)(2), by striking ‘‘The Chair9 man’’ and inserting ‘‘The Commission’’;

10 (2) in section 11(d)(1)(A)(iii), by striking ‘‘the

11 Chairman’’ and inserting ‘‘the Commission’’;

12 (3) in section 11(d)(2), by striking ‘‘Chairman’’

13 and inserting ‘‘Commission’’ each place it appears;

14 (4) in section 12, by striking ‘‘Chairman’’ and

15 inserting ‘‘Commission’’ each place it appears;

16 (5) in section 13, by striking ‘‘Chairman’’ and

17 inserting ‘‘Commission’’ each place it appears; and

18 (6) in section 14, by striking ‘‘Chairman’’ and

19 inserting ‘‘Commission’’ each place it appears.

20 SEC. 6. CLASS II INDIAN GAMING RESTRICTED.

21 (a) REGULATION OF CLASS II GAMING.—Section

22 11(b) of the Indian Gaming Regulatory Act (25 U.S.C.

23 2710(b)) is amended—

24 (1) in paragraph (1)—
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1 (A) in subparagraph (A), by striking all

2 that follows after ‘‘entity’’ and inserting the fol3 lowing: ‘‘which conducts the authorized gaming

4 activity as part of a commercial, for-profit busi5 ness enterprise;’’; and

6 (B) by redesignating subparagraph (B) as

7 subparagraph (D) and inserting the following:

8 ‘‘(B) such gaming is not otherwise specifically

9 prohibited on Indian lands by Federal law;

10 ‘‘(C) permissible gaming is limited to the spe11 cific games and methods of play of gaming activities

12 expressly authorized by the laws of the State; and’’;

13 and

14 (2) in paragraph (2)—

15 (A) in subparagraph (E), by striking

16 ‘‘and’’ at the end;

17 (B) in subparagraph (F)—

18 (i) by amending clause (i) to read as

19 follows:

20 ‘‘(i) ensures that background investigations

21 are conducted on all financial backers, inves22 tors, mortgagees, lenders, security holders, and

23 other such persons or entities as well as on pri24 mary management officials, key employees of

25 the gaming enterprise, and any other person en-
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1 gaged in the operation of gaming or the ac2 counting of gaming assets and that oversight of

3 such officials, persons, or entities is conducted

4 on an ongoing basis; and’’; and

5 (ii) in clause (ii)—

6 (I) by amending subclause (I) to

7 read as follows:

8 ‘‘(I) tribal licenses for primary man9 agement officials, key employees of the

10 gaming enterprise, and any other person

11 engaged in the operation of gaming or the

12 accounting of gaming assets, with prompt

13 notification to the Commission of the issu14 ance of such licenses;’’; and

15 (II) by striking the period at the

16 end and inserting ‘‘; and’’; and

17 (C) by adding at the end the following:

18 ‘‘(G) all gaming activities shall be con19 ducted in conformity with those laws and regu20 lations (if any) of the State regarding specific

21 games allowed and methods of play, including

22 (but not limited to) periods of operation, limita23 tion on wagers, pot sizes, and losses.’’.

24 (b) LICENSING.—Section 11(b)(4)(A) of such Act (25

25 U.S.C. 2710(b)(4)(A)) is amended to read as follows:
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1 ‘‘(4)(A) A tribal ordinance or resolution may provide

2 for the licensing or regulation of class II gaming activities

3 owned by any person or entity other than the Indian tribe

4 and conducted on Indian lands, only if—

5 ‘‘(i) the regulations require that nontribally

6 owned class II gaming be conducted pursuant to

7 limitations, including (but not limited to) those on

8 hours or periods of operation and wager or pot lim9 its, at least as restrictive as those imposed under

10 State law, and

11 ‘‘(ii) the tribal licensing requirements include

12 the requirements described in the subclauses of sub13 paragraph (B)(i) and are at least as restrictive as

14 those established by State law governing similar

15 gaming within the jurisdiction of the State within

16 which such Indian lands are located. No person or

17 entity, other than the Indian tribe, shall be eligible

18 to receive a tribal license to own a class II gaming

19 activity conducted on Indian lands within the juris20 diction of the Indian tribe if such person or entity

21 would not be eligible to receive a State license to

22 conduct the same activity within the jurisdiction of

23 the State.’’.

24 SEC. 7. REGULATION OF CLASS III GAMING.

25 (a) MORATORIUM.—
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1 (1) IN GENERAL.—Except as provided in para2 graph (2), Tribal-State compacts relating to gaming

3 activities under the Indian Gaming Regulatory Act

4 (25 U.S.C. 2701 et seq.) may not be entered into

5 after the date of the enactment of this Act during

6 the period beginning on such date and ending on the

7 date on which the Attorney General of the United

8 States, the Secretary of the Treasury, and the Sec9 retary of the Interior have jointly certified to Con10 gress that all necessary rulemakings have been final11 ized to carry out the intent of the Indian Gaming

12 Regulatory Act, as amended by this Act.

13 (2) EXCEPTION.—Subparagraph (A) does not

14 apply to any Tribal-State compact approved, in writ15 ing, by the Governor of the State concerned.

16 (b) STATE-PERMITTED ACTIVITIES.—Section

17 11(d)(1) of the Indian Gaming Regulatory Act (25 U.S.C.

18 2710(d)(1)) is amended—

19 (1) by amending subparagraph (B) to read as

20 follows:

21 ‘‘(B) located in a State that permits the specific

22 games and methods of play of the gaming activities

23 expressly authorized by the laws of the State by any

24 person, organization, or entity which conducts the
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1 authorized gaming activity as part of a commercial,

2 for-profit business enterprise,’’; and

3 (2) by redesignating subparagraph (C) as sub4 paragraph (D) and inserting after subparagraph (B)

5 the following new subparagraph:

6 ‘‘(C) limited to the specific games and methods

7 of play of gaming activities expressly authorized by

8 the laws of the State, and’’.

9 (c) STATE’S RIGHT OF FIRST REFUSAL OPTION.—

10 Section 11(d)(3)(A) of such Act (25 U.S.C.

11 2710(d)(3)(A)) is amended to read as follows:

12 ‘‘(3)(A) Any Indian tribe having jurisdiction over the

13 Indian lands upon which a class III gaming activity is to

14 be conducted shall request in writing that the State in

15 which such lands are located enter into negotiations for

16 the purpose of entering into a Tribal-State compact gov17 erning the conduct of gaming activities. Upon receiving

18 such a request, the State may negotiate with the Indian

19 tribe to enter into such a compact, or, subject to para20 graph (7) of this subsection, decline to enter into negotia21 tions with the Indian tribe by informing the tribe in writ22 ing of such decision before the expiration of the 180-day

23 period following such request.’’.

24 (d) TRIBAL-STATE COMPACT STANDARDS.—Section

25 11(d)(3)(C)(vi) of such Act (25 U.S.C. 2710(d)(3)(C)(vi))
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1 is amended by inserting ‘‘(but not limited to)’’ after ‘‘in2 cluding’’.

3 (e) JURISDICTION.—Section 11(d)(7) of such Act (25

4 U.S.C. 2710(d)(7)) is amended to read as follows:

5 ‘‘(7)(A) The United States district courts shall have

6 jurisdiction over—

7 ‘‘(i) any cause of action initiated by the United

8 States on behalf of an Indian tribe arising from the

9 failure of a State to conduct negotiations under

10 paragraph (3),

11 ‘‘(ii) any cause of action initiated by a State,

12 the United States or an Indian tribe to enjoin a

13 class III gaming activity located on Indian lands and

14 conducted in violation of this Act or Tribal-State

15 compact entered into under paragraph (3) that is in

16 effect, and

17 ‘‘(iii) any cause of action initiated by the Sec18 retary to enforce the procedures prescribed under

19 subparagraph (I).

20 ‘‘(B) The United States may initiate a cause of action

21 described in subparagraph (A)(i) only if—

22 ‘‘(i) a 180-day period has passed since the In23 dian tribe requested the State to enter into negotia24 tions under paragraph (3)(A),
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1 ‘‘(ii) a Tribal-State compact has not been en2 tered into under paragraph (3) within one year after

3 the date that negotiations between the Indian tribe

4 and the State commenced in good faith, and

5 ‘‘(iii) the specific games and methods of play of

6 class III gaming activity are expressly authorized by

7 the laws of the State.

8 ‘‘(C) In any action described in subparagraph (A)(i),

9 the burden of proof shall be upon the United States to

10 prove that the State has failed to negotiate with the Indian

11 tribe in good faith to conclude a Tribal-State compact gov12 erning the conduct of gaming activities. In determining

13 whether a State has negotiated in good faith, the court—

14 ‘‘(i) may take into account the public interest,

15 public safety, criminality, financial integrity, and ad16 verse economic impacts on existing gaming activities

17 on either Indian lands or within the State or States

18 concerned, or both,

19 ‘‘(ii) shall consider any demand by the State for

20 direct taxation of the Indian tribe or of any Indian

21 lands as evidence that the State has not negotiated

22 in good faith,

23 ‘‘(iii) shall not consider a State’s refusal to ne24 gotiate on terms which differ from State laws and
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1 regulations regarding gaming activities as evidence

2 of failure to negotiate in good faith, and

3 ‘‘(iv) shall not consider reliance upon a legal in4 terpretation, sufficient under Federal Rules of Civil

5 Procedure, rule 11, of the requirements of the In6 dian Gaming Regulatory Act as evidence of failure

7 to negotiate in good faith.

8 ‘‘(D) It shall be a defense to an action brought under

9 paragraph (3) that—

10 ‘‘(i) the tribe has not conducted negotiations

11 with the State on a good-faith basis,

12 ‘‘(ii) the tribe has conducted gaming activities

13 on its lands, or allowed gaming activities to be con14 ducted on its lands, in violation of the provisions of

15 this Act during a 180-day period preceding initiation

16 of such action, or

17 ‘‘(iii) the specific games and methods of play of

18 the class III gaming activity are not expressly au19 thorized by the laws of the State.

20 ‘‘(E) If, in any action described in subparagraph

21 (A)(i), the court finds that the State has failed to nego22 tiate in good faith with the Indian tribe to conclude a

23 Tribal-State compact governing the conduct of gaming ac24 tivities, the court shall order the State and the Indian

25 tribe to conclude such a compact within a 60-day period.
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1 ‘‘(F) If a State and an Indian tribe fail to conclude

2 a Tribal-State compact governing the conduct of gaming

3 activities on the Indian lands subject to the jurisdiction

4 of such Indian tribe within the 60-day period provided in

5 the order of a court issued under subparagraph (E), the

6 Indian tribe and the State shall each submit to a mediator

7 appointed by the court a proposed compact that represents

8 their last best offer for a compact. The mediator shall se9 lect from the two proposed compacts the one which best

10 comports with the terms of this Act and any other applica11 ble Federal law and with the findings and order of the

12 court.

13 ‘‘(G) The mediator appointed by the court under sub14 paragraph (F) shall submit to the State and the Indian

15 tribe the compact selected by the mediator under subpara16 graph (F).

17 ‘‘(H) If a State consents to a proposed compact dur18 ing the 60-day period beginning on the date on which the

19 proposed compact is submitted by the mediator to the

20 State under subparagraph (G), the proposed compact shall

21 be treated as a Tribal-State compact entered into under

22 paragraph (3).

23 ‘‘(I) If the State does not consent during the 60-day

24 period described in subparagraph (H) to a proposed com25 pact submitted by a mediator under subparagraph (G),
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1 the mediator shall notify the Secretary and the Secretary

2 shall prescribe, in consultation with the Indian tribe, pro3 cedures—

4 ‘‘(i) which are consistent with the proposed

5 compact selected by the mediator under subpara6 graph (F), the provisions of this Act, and the rel7 evant provisions of the laws of the State, and

8 ‘‘(ii) under which class III gaming may be con9 ducted on the Indian lands over which the Indian

10 tribe has jurisdiction.

11 ‘‘(J) If the State expressly declines to negotiate for

12 a Tribal-State compact pursuant to paragraph (3)(A), or

13 if the State does not consent during the 60-day period de14 scribed in subparagraph (H) to a proposed compact sub15 mitted by a mediator under subparagraph (G), the tribe,

16 in the former case, may notify the Secretary, or the medi17 ator, in the latter case, shall notify the Secretary and the

18 Secretary shall prescribe upon such notification, in con19 sultation with the Indian tribe, procedures—

20 ‘‘(i) which are consistent with, where applicable,

21 the proposed compact selected by the mediator

22 under subparagraph (F), the provisions of this Act,

23 and the relevant provisions of the laws of the State,

24 and
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1 ‘‘(ii) under which class III gaming may be con2 ducted on the Indian lands over which the tribe has

3 jurisdiction.

4 ‘‘(K) For the purposes of this section, failure of the

5 State to expressly decline a tribal request to enter into

6 negotiations for a Tribal-State compact within the 180-

7 day period under paragraph (3)(A) shall be deemed a dec8 lination, whereupon the tribe may notify the Secretary

9 under subparagraph (J) for the prescription of procedures

10 allowing for class III gaming.

11 ‘‘(L) A mediator appointed by the court may not se12 lect a proposed compact within a State that violates an

13 existing law of that State regulating class III gaming, or

14 construe an authorization by a State of one form of class

15 III gaming as an authorization for all forms of class III

16 gaming.’’.

17 (f) CHANGES IN STATE OR TRIBAL LAW.—Section

18 11(d) of such Act (25 U.S.C. 2710(d)) is amended by add19 ing at the end the following:

20 ‘‘(10) Except as provided by paragraph (2)(D), a

21 State or tribe may request in writing to enter into negotia22 tions based on the enactment or adoption of a State law

23 or tribal ordinance or resolution that amends, repeals, or

24 otherwise affects a Tribal-State compact in effect pursu25 ant to this subsection. A request under this paragraph
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1 shall be treated as a request made under paragraph (3),

2 except that the Tribal-State compact shall remain in effect

3 and gaming may be conducted pursuant to such compact

4 during the negotiation process.’’.

5 SEC. 8. NONRESERVATION LANDS; GAMING ON AFTER AC6 QUIRED LANDS.

7 (a) PROHIBITION.—Subsection (a) of section 20 of

8 the Indian Gaming Regulatory Act (25 U.S.C. 2719(a))

9 is amended to read as follows:

10 ‘‘(a) Gaming regulated by this Act shall not be con11 ducted on Indian lands which, on or after October 17,

12 1988, are acquired by any Indian tribe, are taken into

13 trust by the United States, or are first subject to a restric14 tion against alienation by the United States unless—

15 ‘‘(1) such lands are located in Oklahoma and

16 are within the boundaries of the Indian tribe’s

17 former reservation, as defined by the Secretary, or

18 ‘‘(2) such lands are located in a State other

19 than Oklahoma and are within the Indian tribe’s

20 last recognized reservation within the State or

21 States within which such Indian tribe is presently lo22 cated.’’.

23 (b) REPEAL.—Subsection (b) of section 20 of the In24 dian Gaming Regulatory Act (25 U.S.C. 2719(a)) is re-
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1 pealed and subsections (c) and (d) are redesignated as

2 subsections (b) and (c), respectively.

3 SEC. 9. REPORTING AND BOOKKEEPING.

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

5 et seq.) is amended by inserting after section 21 the fol6 lowing new section:

7 ‘‘REPORTING AND BOOKKEEPING

8 ‘‘SEC. 21A. (a) Within 90 days after the date of the

9 enactment of this section, the Secretary of the Treasury

10 shall issue such regulations as may be necessary to require

11 gaming establishments authorized pursuant to this Act to

12 be subject to such reporting and recordkeeping require13 ments as those which are applicable to a casino or gam14 bling casino referred to in section 103.11(i)(7)(i) of part

15 103 of title 31 of the Code of Federal Regulations in order

16 to ensure a high degree of usefulness in criminal, tax, and

17 regulatory matters.

18 ‘‘(b) In the administration of this Act, an authoriza19 tion provided by a State for one form of class III gaming

20 shall not be construed as an authorization of all forms of

21 class III gaming for purposes of negotiations between a

22 State and a tribe.

23 ‘‘(c) In the administration of this Act, the United

24 States district courts shall have sole jurisdiction over con25 tract disputes between tribes and contract operators of In26 dian gaming establishments.’’.
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1 SEC. 10. BACKGROUND INVESTIGATIONS.

2 (a) ROLE OF ATTORNEY GENERAL.—The Indian

3 Gaming Regulatory Act (25 U.S.C. 2701 et seq.), as

4 amended by section 9 of this Act, is amended by inserting

5 after section 21A the following new section:

6 ‘‘BACKGROUND INVESTIGATIONS

7 ‘‘SEC. 21B. (a) The Attorney General shall conduct

8 such background investigations as may be necessary—

9 ‘‘(1) to determine the suitability of each individ10 ual, person or entity (including individuals compris11 ing such entity, serving on the board of directors of

12 a corporation, and stockholders of a corporation)

13 listed in section 12(a)(1)(A) to be involved in class

14 III gaming activities under this Act;

15 ‘‘(2) to determine the suitability of any finan16 cial backer, investor, mortgagee, lender, security

17 holder, or other such person or entity to be involved

18 in class III gaming activities under this Act;

19 ‘‘(3) to determine the suitability of any primary

20 management official, or key employee of a class III

21 gaming activity under this Act, or any other person

22 or entity engaged in class III gaming activities, or

23 the accounting of class III gaming assets, under this

24 Act, to continue to engage in such activities;

25 ‘‘(4) to assist the Commission in carrying out

26 sections 7(b) and 12; and
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1 ‘‘(5) otherwise necessary with respect to imple2 menting class III gaming activities pursuant to this

3 Act.

4 ‘‘(b) For the purposes of this Act, a background in5 vestigation shall include (but not be limited to)—

6 ‘‘(1) criminal history, especially criminal history

7 with respect to organized crime;

8 ‘‘(2) taxpayer return and return information;

9 ‘‘(3) immigration information;

10 ‘‘(4) records, held by any entity of the Federal

11 Government, which are not described in paragraphs

12 (1), (2), or (3); and

13 ‘‘(5) records held by State entities.

14 ‘‘(c) For the purposes of subsection (b)—

15 ‘‘(1) the Attorney General is authorized to uti16 lize the system devised under section 242(a)(3)(A)(i)

17 of the Immigration and Nationality Act to determine

18 if an individual is an alien; and

19 ‘‘(2) returns and return information (as such

20 terms are defined in section 6103(b) of the Internal

21 Revenue Code of 1986) shall be open to inspection

22 by, or disclosure to, the Attorney General and other

23 officers and employees of the Department of Justice

24 and the Commission, subject to the procedures and
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1 recordkeeping required under subsection (p) of such

2 section 6103(b).

3 ‘‘(d) Upon application by any State to the Attorney

4 General that such State is willing and able to conduct any

5 or all background investigations required by this section

6 regarding Class III gaming, the Attorney General is au7 thorized, if the Attorney General determines that such

8 State is willing and able to conduct such investigations,

9 to permit that State to conduct such investigations as are

10 authorized by the Attorney General.’’.

11 (b) CONFORMING AMENDMENTS.—(1) Paragraph (3)

12 of section 7(b) of such Act (25 U.S.C. 2706(b)) is amend13 ed to read as follows:

14 ‘‘(3) in consultation with the Attorney General,

15 shall conduct or cause to be conducted such back16 ground investigations as may be necessary to carry

17 out the duties of the Commission under this Act

18 with respect to class II gaming;’’.

19 (2) Section 12 of such Act (25 U.S.C. 2711), as

20 amended by section 5 of this Act, is amended—

21 (A) in subsection (a)(1), by striking ‘‘the Com22 mission shall’’ and inserting ‘‘the Commission, in

23 consultation with the Attorney General pursuant to

24 section 21B, shall’’; and
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1 (B) in subsection (e), by striking ‘‘the Commis2 sion determines’’ and inserting ‘‘the Commission, in

3 consultation with the Attorney General pursuant to

4 section 21B, determines’’.

5 SEC. 11. CRIMINAL LAWS.

6 Section 1166 of title 18, United States Code, is

7 amended to read as follows:

8 ‘‘§ 1166. Gambling Indian country

9 ‘‘(a) Subject to subsection (c), for purposes of Fed10 eral law, all State laws pertaining to the licensing, regula11 tion, or prohibition of gambling, including (but not limited

12 to) criminal sanctions applicable thereto, shall apply in In13 dian country in the State in the same manner and to the

14 same extent as such laws apply elsewhere in the State.

15 ‘‘(b) Whoever in Indian country is guilty of any act

16 or omission involving gambling, whether or not conducted

17 or sanctioned by an Indian tribe, which, although not

18 made punishable by any enactment of Congress, would be

19 punishable if committed or omitted within the jurisdiction

20 of the State in which the act or omission occurred, under

21 the laws governing the licensing, regulation, or prohibition

22 of gambling in force at the time of such act or omission,

23 shall be guilty of a like offense and subject to a like

24 punishment.
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1 ‘‘(c) For the purpose of this section, the term ‘gam2 bling’ does not include—

3 ‘‘(1) class I gaming or class II gaming regu4 lated by the Indian Gaming Regulatory Act, or

5 ‘‘(2) class III gaming conducted under a Tribal6 State compact approved by the Secretary of the In7 terior under section 11(d)(8) of the Indian Gaming

8 Regulatory Act that is in effect.

9 ‘‘(d) The United States shall have exclusive jurisdic10 tion over criminal prosecutions of violations of State gam11 bling laws that are made applicable under this section to

12 Indian country, unless—

13 ‘‘(1) an Indian tribe pursuant to a Tribal-State

14 compact approved by the Secretary of the Interior

15 under section 11(d)(8) of the Indian Gaming Regu16 latory Act, or under any other provision of Federal

17 law, has consented to the transfer to the State of

18 criminal jurisdiction with respect to gambling on the

19 lands of the Indian tribe, or

20 ‘‘(2) authority has been granted to a State to

21 enforce the criminal laws of the State on Indian

22 lands within the State pursuant to section 1162 of

23 this title, or any other provision of Federal law

24 which authorizes exercise of such criminal jurisdic25 tion by a State, which authority shall be concurrent
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1 with the United States with respect to violations also

2 made violations of Federal law under subsection (a)

3 of this section.’’.

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