SECTION 1. CLASS III CERTIFICATION.

    (a) In General.--Section 11(d) of the Indian Gaming Regulatory Act 
(25 U.S.C. 2710(d)) is amended--
            (1) in paragraph (1)(C), by inserting after ``paragraph 
        (3)'' the following: ``, or with a class III certificate issued 
        pursuant to paragraph (10),'';
            (2) in paragraph (2)(C), by inserting after ``paragraph (3) 
        by the Indian tribe'' the following: ``or the class III 
        certificate issued pursuant to paragraph (10)'';
            (3) in paragraph (3)(A), by striking ``the State shall 
        negotiate with the Indian tribe'' and inserting the following: 
        ``the State may consent to enter into good faith negotiations 
        with the tribe to enter into such a compact,'';
            (4) by amending paragraph (6) to read as follows:
            ``(6) The provisions of section 5 of the Act of January 2, 
        1951 (64 Stat. 1135; 15 U.S.C. 1175), shall not apply to any 
        gaming conducted--
                    ``(A) under a Tribal-State compact entered into 
                under paragraph (3) by a State in which gaming devices 
                are legal; or
                    ``(B) under a class III certificate issued pursuant 
                to paragraph (10), which applies to gaming on Indian 
                lands located in a State in which gaming devices are 
                legal; and
                    ``(C) is in effect.'';
            (5) in paragraph (7)(A)(i), by adding at the end the 
        following: ``, if such State, pursuant to paragraph (7)(B)(i) 
        or (9) consents in writing to the jurisdiction of the Federal 
        court,'';
            (6) in paragraph (7)(A)(iii), by adding before the period 
        at the end thereof the following: ``or a Class III certificate 
        approved under paragraph (10)'';
            (7) in paragraph (7)(B)(vii) by--
                    (A) striking out ``and'' at the end of subclause 
                (I);
                    (B) striking out the period at the end of subclause 
                (II) and inserting in lieu thereof ``, and''; and
                    (C) adding at the end the following:
                                    ``(III) which do not include 
                                provisions which impose any obligation 
                                on a State to regulate such gaming.'';
            (8) by redesignating paragraph (9) as paragraph (11); and
            (9) by inserting after paragraph (8) the following new 
        paragraphs:
            ``(9)(A) An Indian tribe may conduct Class III gaming 
        pursuant to a Class III certificate issued by the Commission 
        under paragraph (10).
            ``(B) A tribe may apply for a Class III certificate under 
        paragraph (10) only if--
                    ``(i) a State fails to consent to the jurisdiction 
                of the Federal court pursuant to paragraph (7)(A)(i) 
                within 30 days of the effective date of this amendment 
                or within 180 days of the delivery to the State of a 
                request by a tribe for compact negotiations as provided 
                for by paragraph (3)(A), whichever is longer,
                    ``(ii) in an action brought against a State by a 
                tribe, a State raises any defense to the jurisdiction 
                of the Federal court on any grounds which are not 
                curable by the tribal plaintiff, or
                    ``(iii) the Federal court finds it lacks 
                jurisdiction for any reason not curable by the tribe.
            ``(10)(A) A tribe otherwise permitted, pursuant to 
        paragraph (9) to apply for a Class III certificate, may do so 
        by submitting to the Commission, an application for a Class III 
        certificate which meets the requirements of subparagraph (B).
            ``(B) The Commission shall approve any application for a 
        Class III certificate if--
                    ``(i) the application provides that any gaming 
                authorized under the Class III certificate be conducted 
                in accordance with a tribal ordinance or resolution 
                pursuant to paragraph (8), and
                    ``(ii) the gaming activities proposed in the 
                application are located in a State that permits such 
                gaming for any purpose, by any person, organization, or 
                entity.
            ``(C) The Commission may add regulatory or licensing 
        provisions as a condition of approval for a Class III 
        certificate if such amendments are reasonable and necessary to 
        implement the purposes of this Act, except that the certificate 
        may not include provisions which impose any obligation on a 
        State to regulate such gaming.
            ``(D) If the Commission does not approve a Class III 
        certificate properly submitted by a tribe under paragraph (9) 
        or does not provide conditions of approval under subparagraph 
        (C) before the date that is 45 days after the date on which the 
        Class III certificate was submitted to the Commission for 
        approval, the Class III certificate shall be considered to have 
        been approved by the Commission, but only to the extent the 
        Class III certificate is consistent with the provisions of this 
        Act.
            ``(E) The Commission may impose upon tribes with Class III 
        gaming certificates, an annual fee necessary to defray the 
        reasonable costs of regulation, but not more than one-half of 
        one percent of the net revenue derived from Class III gaming. 
        Nothing in this subsection shall grant the Commission any power 
        to impose any such fees on Class III gaming activities 
        conducted pursuant to Tribal-State compacts.''.
    (b) Conforming Amendment.--Section 7(b) of the Indian Gaming 
Regulatory Act (25 U.S.C. 2706(b)) is amended--
            (1) in paragraph (9), by striking ``and'' at the end 
        thereof;
            (2) in paragraph (10), by striking the period at the end 
        thereof and inserting in lieu thereof ``; and''; and
            (3) by adding at the end thereof the following:
            ``(11) shall approve and modify class III certificates as 
        necessary to carry out the duties of the Commission under this 
        chapter.''.
    (c) Conforming Amendment to Title 18.--Section 1166(c) of title 18, 
United States Code, is amended--
            (1) in paragraph (1), by striking out ``, or'' at the end 
        thereof and inserting in lieu thereof a semicolon;
            (2) in paragraph (2), by striking out the period at the end 
        and inserting in lieu thereof ``; or''; and
            (3) by adding at the end thereof the following:
            ``(3) gaming conducted in compliance with a class III 
        certificate issued under section 11(d)(10) of the Indian Gaming 
        Regulatory Act (25 U.S.C. 2710(d)(10).''.

SEC. 2. AFFECT ON TRIBAL-STATE COMPACTS.

    Nothing in this Act, nor in any of the amendments made by this Act 
shall, in any way, impair the validity of any Tribal-State compact 
entered into pursuant to section 11(d) of the Indian Gaming Regulatory 
Act (25 U.S.C. 2710(d)).
Output: Amends the Indian Gaming Regulatory Act (the Act) to revise conditions under which a tribe may receive certification for certain types of gaming activities on Indian lands. 
Allows a State the option to consent to enter into negotiations with a tribe to enter into a class III gaming certification compact. Repeals the current mandate to do so. 
Allows a tribe to apply to the National Indian Gaming Commission (the Commission) for a class III gaming certificate if a State fails to consent to Federal court jurisdiction or raises a defense against such jurisdiction, or the Federal court finds it lacks such jurisdiction, for any reason not curable by the tribe. 
Directs the Commission to approve the application if such gaming will be conducted in accordance with a tribal ordinance or resolution and will be located in a State that permits such gaming for any purpose, by any person, organization, or entity.  Authorizes the Commission to add regulatory or licensing provisions as a condition of such approval and to impose annual fees to defray reasonable costs of regulation.  Considers an application approved if the Commission fails to act upon it within a specified time.