[Congressional Bills 103th Congress]
[From the U.S. Government Publishing Office]
[H.R. 1624 Introduced in House (IH)]

103d CONGRESS
  1st Session
                                H. R. 1624

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


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             April 1, 1993

Mr. Hoagland (for himself, Mr. Machtley, and Mr. Stump) introduced the 
following bill; which was referred jointly to the Committees on Natural 
                      Resources and Ways and Means

_______________________________________________________________________

                                 A BILL


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

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

SECTION 1. INDIAN GAMING RESTRICTED.

    (a) Regulation of Class II Gaming.--Section 11(b) of the Act (25 
U.S.C. 2710(b)) is amended--
            (1) in paragraph (1)--
                    (A) in subparagraph (A)--
                            (i) by inserting ``(i)'' after ``(A)'';
                            (ii) in clause (i), as designated by clause 
                        (i) of this subparagraph, by striking ``any 
                        purpose'' and all that follows through ``law), 
                        and'' and inserting ``a commercial purpose by 
                        any person, organization or entity, or''; and
                            (iii) by inserting after clause (i), as 
                        designated by clause (i) of this subparagraph, 
                        the following:
            ``(ii) such Indian gaming is for charitable purposes and is 
        located within a State that permits such gaming for charitable 
        purposes by a person, organization or entity,'';
                    (B) by redesignating subparagraph (B) as 
                subparagraph (D) and inserting the following:
            ``(B) such gaming is not otherwise specifically prohibited 
        on Indian lands by Federal law,
            ``(C) permissible gaming is limited to the specific forms 
        of, and methods of play for, gaming activities expressly 
        authorized by the law of the State, and''; and
            (2) in paragraph (2)--
                    (A) in subparagraph (E), by striking ``and'' at the 
                end;
                    (B) in subparagraph (F), by striking the period and 
                inserting ``; and''; and
                    (C) by adding at the end the following:
            ``(G) all gaming activities shall be conducted in 
        conformity with those laws and regulations (if any) of the 
        State regarding specific games allowed and methods of play, 
        including, but not limited to, periods of operation, limitation 
        on wagers, pot sizes, and losses.''.
    (b) Regulation of Class III Gaming.--Section 11(d)(1) of the Act 
(25 U.S.C. 2710(d)(1)) is amended--
            (1) by amending subparagraph (B) to read as follows:
            ``(B) located in a State that permits such gaming for any 
        purpose by any person, organization, or entity which conducts 
        the authorized gaming activity as part of a commercial, for-
        profit business enterprise; except that a Tribal-State compact 
        may permit any other class III gaming authorized by a State if 
        conducted in accordance with State law;''; and
            (2) by redesignating subparagraph (C) as subparagraph (D) 
        and inserting after subparagraph (B) the following new 
        subparagraph:
            ``(C) limited to the specific forms of, and methods of play 
        for, gaming activities expressly authorized by the law of the 
        State; and''.

SEC. 2. DEFINITION OF CLASS III GAMING.

    Section 4 of the Act (25 U.S.C. 2703) is amended--
            (1) in paragraph (7)(A)(i), by inserting after 
        ``therewith)'' the following: ``except video bingo''; and
            (2) in paragraph (8), by inserting before the period at the 
        end the following: ``including, but not limited to, slot 
        machines (as such term is defined in subsection (a)(1) of the 
        first section of the Act of January 2, 1951 (Chapter 1194; 64 
        Stat. 1134)), electronic or electromechanical facsimiles of any 
        game of chance, and any and all forms of electronic video games 
        or devices, such as video bingo, video pull-tabs, video keno, 
        and video blackjack''.

SEC. 3. COMPACT NEGOTIATION.

    (a) Burden of Proof.--Section 11(d)(7)(B)(ii) of the Act (25 U.S.C. 
2710(d)(7)(B)(ii)) is amended by striking ``burden of proof shall be 
upon the State to prove that the State'' and inserting ``burden of 
proof shall be upon the Indian tribe to prove that the State''.
    (b) Certain Evidence.--Section 11(d)(7)(B)(iii) of the Act (25 
U.S.C. 2710(d)(7)(B)(iii)) is amended--
            (1) in subclause (I), by striking ``, and'' and inserting a 
        semicolon;
            (2) in subclause (II), by striking the period and inserting 
        ``; and''; and
            (3) by adding at the end the following:
                            ``(III) except as provided in clause (ii), 
                        shall not consider as evidence that the State 
                        has not negotiated in good faith a demand by 
                        the State that the gaming activities 
                        contemplated by the compact be conducted on the 
                        same basis as gaming activities which may be 
                        conducted by any other person or entity under 
                        the terms of relevant State law.''.

SEC. 4. NATIONAL INDIAN GAMING COMMISSION.

    (a) Additional Members.--Section 5(b)(1) of the Act (25 U.S.C. 
2704(b)(1)) is amended--
            (1) in the material preceding subparagraph (A), by striking 
        ``three'' and inserting ``five'';
            (2) in subparagraph (A), by striking ``and'';
            (3) in subparagraph (B), by striking the period at the end 
        and inserting ``; and''; and
            (4) by adding at the end the following:
                    ``(C) two associate members who shall be appointed 
                by the President, with the advice and consent of the 
                Senate, from among State officials.''.
    (b) Composition.--Section 5(b)(3) of the Act (25 U.S.C. 2704(b)(3)) 
is amended in the first sentence by striking ``two'' and inserting 
``three''.
    (c) Quorum.--Section 5(d) of the Act (25 U.S.C. 2704(d)) is amended 
by striking ``two'' and inserting ``three''.
    (d) Effective Date; Transition Rules.--(1) Except as required for 
paragraph (2), the amendments made by this section shall take effect at 
the end of the 90-day period beginning on the date of enactment of this 
Act and shall apply with respect to any action taken by the National 
Indian Gaming Commission after the end of such period.
    (2) Not later than 90 days after the date of enactment of this Act, 
the President shall make the initial appointments of the associate 
members of the National Indian Gaming Commission, as required by the 
amendments made by subsection (a) of this section, in accordance with 
the Indian Gaming Regulatory Act, as amended by this Act.

SEC. 5. GAMING ON AFTER ACQUIRED LANDS.

    Section 20(b)(1)(A) of the Act (25 U.S.C. 2719(b)(1)(A)) is 
amended--
            (1) by striking ``and appropriate State and local 
        officials, including officials of other nearby Indian tribes,'' 
        and inserting the following: ``, appropriate State and local 
        officials (including officials of other nearby Indian tribes), 
        and officials of other nearby communities (including 
        communities across State borders that would be directly 
        affected by gaming conducted on such lands),''; and
            (2) by striking ``community'' and inserting ``communities 
        (including communities across State borders that would be 
        directly affected by gaming conducted on such lands)''.

SEC. 6. INDIAN EMPLOYMENT CREDIT.

    (a) Allowance of Indian Employment Credit.--Section 38(b) of the 
Internal Revenue Code of 1986 (relating to general business credits) is 
amended by striking ``plus'' at the end of paragraph (7), by striking 
the period at the end of paragraph (8) and inserting ``, plus'', and by 
adding after paragraph (8) the following new paragraph:
            ``(9) the Indian employment credit as determined under 
        section 45A(a).''.
    (b) Amount of Indian Employment Credit.--Subpart D of Part IV of 
subchapter A of chapter 1 of such Code (relating to business related 
credits) is amended by adding at the end thereof the following new 
section:

``SEC. 45A. INDIAN EMPLOYMENT CREDIT.

    ``(a) Amount of Credit.--
            ``(1) In general.--For purposes of section 38, the amount 
        of the Indian employment credit determined under this section 
        with respect to any employer for any taxable year is 10 percent 
        (30 percent in the case of an employer with at least 85 percent 
        Indian employees throughout the taxable year) of the sum of--
                    ``(A) the qualified wages paid or incurred during 
                such taxable year, plus
                    ``(B) qualified employee health insurance costs 
                paid or incurred during such taxable year.
        In no event shall the amount of the Indian employment credit 
        for any taxable year exceed the credit limitation amount 
        determined under subsection (e) for such taxable year.
            ``(2) Indian employee.--For purposes of paragraph (1), the 
        term `Indian employee' means an employee who is an enrolled 
        member of an Indian tribe or the spouse of such a member.
    ``(b) Qualified Wages; Qualified Employee Health Insurance Costs.--
For purposes of this section--
            ``(1) Qualified wages.--
                    ``(A) In general.--The term `qualified wages' means 
                any wages paid or incurred by an employer for services 
                performed by an employee while such employee is a 
                qualified employee.
                    ``(B) Coordination with targeted jobs credit.--The 
                term `qualified wages' shall not include wages 
                attributable to service rendered during the 1-year 
                period beginning with the day the individual begins 
                work for the employer if any portion of such wages is 
                taken into account in determining the credit under 
                section 51.
            ``(2) Qualified employee health insurance costs.--
                    ``(A) In general.--The term `qualified employee 
                health insurance costs' means any amount paid or 
                incurred by an employer for health insurance to the 
                extent such amount is attributable to coverage provided 
                to any employee while such employee is a qualified 
                employee.
                    ``(B) Exception for amounts paid under salary 
                reduction arrangements.--No amount paid or incurred for 
                health insurance pursuant to a salary reduction 
                arrangement shall be taken into account under 
                subparagraph (A).
    ``(c) Qualified Employee.--For purposes of this section--
            ``(1) In general.--Except as otherwise provided in this 
        subsection, the term `qualified employee' means, with respect 
        to any period, any employee of an employer if--
                    ``(A) substantially all of the services performed 
                during such period by such employee for such employer 
                are performed within an Indian reservation,
                    ``(B) the principal place of abode of such employee 
                while performing such services is on or near the 
                reservation in which the services are performed, and
                    ``(C) the employee began work for such employer on 
                or after January 1, 1994.
            ``(2) Credit allowed only for first 7 years.--An employee 
        shall not be treated as a qualified employee for any period 
        after the date 7 years after the day on which such employee 
        first began work for the employer.
            ``(3) Individuals receiving wages in excess of $30,000 not 
        eligible.--An employee shall not be treated as a qualified 
        employee for any taxable year of the employer if the total 
        amount of the wages paid or incurred by such employer to such 
        employee during such taxable year (whether or not for services 
        within an Indian reservation) exceeds the amount determined at 
        an annual rate of $30,000. The Secretary shall adjust the 
        $30,000 amount contained in the preceding sentence for years 
        beginning after 1993 at the same time and in the same manner as 
        under section 415(d).
            ``(4) Employment must be trade or business employment.--An 
        employee shall be treated as a qualified employee for any 
        taxable year of the employer only if more than 50 percent of 
        the wages paid or incurred by the employer to such employee 
        during such taxable year are for services performed in a trade 
        or business of the employer. Any determination as to whether 
        the preceding sentence applies with respect to any employee for 
        any taxable year shall be made without regard to subsection 
        (f)(2).
            ``(5) Certain employees not eligible.--The term `qualified 
        employee' shall not include--
                    ``(A) any individual described in subparagraph (A), 
                (B), or (C) of section 51(i)(1),
                    ``(B) any 5-percent owner (as defined in section 
                416(i)(1)(B)),
                    ``(C) any individual who is neither an enrolled 
                member of an Indian tribe nor the spouse of an enrolled 
                member of an Indian tribe, and
                    ``(D) any individual if the services performed by 
                such individual for the employer involve the conduct of 
                class I, II, or III gaming as defined in section 4 of 
                the Indian Gaming Regulatory Act (25 U.S.C. 2703), or 
                are performed in a building housing such gaming 
                activity.
            ``(6) Indian tribe defined.--The term `Indian tribe' means 
        any Indian tribe, band, nation, pueblo, or other organized 
        group or community, including any Alaska Native village, or 
        regional or village corporation, as defined in, or established 
        pursuant to, the Alaska Native Claims Settlement Act (43 U.S.C. 
        1601 et seq.) which is recognized as eligible for the special 
        programs and services provided by the United States to Indians 
        because of their status as Indians.
            ``(7) Indian reservation defined.--The term `Indian 
        reservation' means a reservation, as defined in--
                    ``(A) section 3(d) of the Indian Financing Act of 
                1974 (25 U.S.C. 1452(d)), or
                    ``(B) section 4(10) of the Indian Child Welfare Act 
                of 1978 (25 U.S.C. 1903 (10)).
    ``(d) Early Termination of Employment by Employer.--
            ``(1) In general.--If the employment of any employee is 
        terminated by the taxpayer before the day 1 year after the day 
        on which such employee began work for the employer--
                    ``(A) no wages (or qualified employee health 
                insurance costs) with respect to such employee shall be 
                taken into account under subsection (a) for the taxable 
                year in which such employment is terminated, and
                    ``(B) the tax under this chapter for the taxable 
                year in which such employment is terminated shall be 
                increased by the aggregate credits (if any) allowed 
                under section 38(a) for prior taxable years by reason 
                of wages (or qualified employee health insurance costs) 
                taken into account with respect to such employee.
            ``(2) Carrybacks and carryovers adjusted.--In the case of 
        any termination of employment to which paragraph (1) applies, 
        the carrybacks and carryovers under section 39 shall be 
        properly adjusted.
            ``(3) Subsection not to apply in certain cases.--
                    ``(A) In general.--Paragraph (1) shall not apply 
                to--
                            ``(i) a termination of employment of an 
                        employee who voluntarily leaves the employment 
                        of the taxpayer,
                            ``(ii) a termination of employment of an 
                        individual who before the close of the period 
                        referred to in paragraph (1) becomes disabled 
                        to perform the services of such employment 
                        unless such disability is removed before the 
                        close of such period and the taxpayer fails to 
                        offer reemployment to such individual, or
                            ``(iii) a termination of employment of an 
                        individual if it is determined under the 
                        applicable State unemployment compensation law 
                        that the termination was due to the misconduct 
                        of such individual.
                    ``(B) Changes in form of business.--For purposes of 
                paragraph (1), the employment relationship between the 
                taxpayer and an employee shall not be treated as 
                terminated--
                            ``(i) by a transaction to which section 
                        381(a) applies if the employee continues to be 
                        employed by the acquiring corporation, or
                            ``(ii) by reason of a mere change in the 
                        form of conducting the trade or business of the 
                        taxpayer if the employee continues to be 
                        employed in such trade or business and the 
                        taxpayer retains a substantial interest in such 
                        trade or business.
            ``(4) Special rule.--Any increase in tax under paragraph 
        (1) shall not be treated as a tax imposed by this chapter for 
        purposes of--
                    ``(A) determining the amount of any credit 
                allowable under this chapter, and
                    ``(B) determining the amount of the tax imposed by 
                section 55.
    ``(e) Credit Limitation Amount.--For purposes of this section--
            ``(1) Credit limitation amount.--The credit limitation 
        amount for a taxable year shall be an amount equal to the 
        credit rate (10 or 30 percent as determined under subsection 
        (a)) multiplied by the increased credit base.
            ``(2) Increased credit base.--The increased credit base for 
        a taxable year shall be the excess of--
                    ``(A) the sum of any qualified wages and qualified 
                employee health insurance costs paid or incurred by the 
                employer during the taxable year with respect to 
                employees whose wages (paid or incurred by the 
                employer) during the taxable year do not exceed the 
                amount determined under paragraph (3) of subsection 
                (c), over
                    ``(B) the sum of any qualified wages and qualified 
                employee health insurance costs paid or incurred by the 
                employer (or any predecessor) during calendar year 1993 
                with respect to employees whose wages (paid or incurred 
                by the employer or any predecessor) during 1993 did not 
                exceed $30,000.
            ``(3) Special rule for short taxable years.--For any 
        taxable year having less than 12 months--
                    ``(A) the amounts paid or incurred by the employer 
                shall be annualized for purposes of determining the 
                increased credit base, and
                    ``(B) the credit limitation amount shall be 
                multiplied by a fraction, the numerator of which is the 
                number of days in the taxable year and the denominator 
                of which is 365.
    ``(f) Other Definitions and Special Rules.--For purposes of this 
section--
            ``(1) Wages.--The term `wages' has the same meaning given 
        to such term in section 51.
            ``(2) Controlled groups.--
                    ``(A) All employers treated as a single employer 
                under section (a) or (b) of section 52 shall be treated 
                as a single employer for purposes of this section.
                    ``(B) The credit (if any) determined under this 
                section with respect to each such employer shall be its 
                proportionate share of the wages and qualified employee 
                health insurance costs giving rise to such credit.
            ``(3) Certain other rules made applicable.--Rules similar 
        to the rules of section 51(k) and subsections (c), (d), and (e) 
        of section 52 shall apply.
            ``(4) Coordination with nonrevenue laws.--Any reference in 
        this section to a provision not contained in this title shall 
        be treated for purposes of this section as a reference to such 
        provision as in effect on the date of the enactment of this 
        paragraph.''.
    (c) Denial of Deduction for Portion of Wages Equal to Indian 
Employment Credit.--
            (1) Subsection (a) of section 280C of such Code (relating 
        to rule for targeted jobs credit) is amended by striking 
        ``51(a)'' and inserting ``45A(a), 51(a), and''.
            (2) Subsection (c) of section 196 of such Code (relating to 
        deduction for certain unused business credits) is amended by 
        striking ``and'' at the end of paragraph (4), by striking the 
        period at the end of paragraph (5) and inserting ``, and'', and 
        by adding at the end the following new paragraph:
            ``(6) the Indian employment credit determined under section 
        45A(a).''.
    (d) Denial of Carrybacks to Preenactment Years.--Subsection (d) of 
section 39 of such Code is amended by adding at the end thereof the 
following new paragraph:
            ``(4) No carryback of section 45a credit before 
        enactment.--No portion of the unused business credit for any 
        taxable year which is attributable to the Indian employment 
        credit determined under section 45A may be carried to a taxable 
        year ending before the date of the enactment of section 45A.''.
    (e) Clerical Amendment.--The table of sections for subpart D of 
part IV of subchapter A of chapter 1 of such Code is amended by adding 
at the end thereof the following:

                              ``Sec. 45A. Indian employment credit.''.
    (f) Effective Date.--The amendments made by this section shall 
apply to wages paid or incurred after December 31, 1993.

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HR 1624 IH----2