[Congressional Bills 103th Congress]
[From the U.S. Government Publishing Office]
[S. 1035 Introduced in Senate (IS)]

103d CONGRESS
  1st Session
                                S. 1035

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


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                May 26 (legislative day, April 19), 1993

    Mr. Reid (for himself, Mr. Bryan, Mr. Graham, and Mr. Simpson) 
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.

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

SECTION 1. FINDINGS AND DECLARATION OF POLICY.

    (a) Findings.--Section 2(5) of the Indian Gaming Regulatory Act (25 
U.S.C. 2701(5)) is amended by inserting ``subject to the provisions of 
this Act'' after ``Indian lands''.
    (b) Policy.--Section 3(2) of such Act (25 U.S.C. 2702(2)) is 
amended by striking ``by an Indian tribe''.

SEC. 2. DEFINITIONS.

    (a) Indian Lands.--Section 4(4) of the Indian Gaming Regulatory Act 
(25 U.S.C. 2703(4)) is amended to read as follows:
    ``(4) The term `Indian lands' means lands over which an Indian 
tribe exercises governmental power, and which are located--
            ``(A) within the exterior boundaries of an Indian 
        reservation and held in fee by the Indian tribe for which such 
        lands have been reserved;
            ``(B) within the exterior boundaries of the reservation 
        title to which is either held in trust by the United States for 
        the benefit of an Indian tribe or member of such tribe or held 
        by an Indian tribe or member of such tribe subject to 
        restriction by the United States against alienation; or
            ``(C) outside the exterior boundaries of a recognized 
        reservation, as such boundaries existed on October 17, 1988, 
        title to which is either held in trust by the United States for 
        the benefit of an Indian tribe or held by an Indian tribe 
        subject to restriction by the United States against 
        alienation.''.
    (b) Indian Tribe.--Section 4(5)(A) of such Act (25 U.S.C. 
2703(5)(A)) is amended by inserting ``before the date of the enactment 
of this Act'' after ``recognized''.
    (c) Class III Gaming.--Section 4 of such Act (25 U.S.C. 2703) is 
amended--
            (1) in paragraph (7)(A)(i)--
                    (A) in the matter preceding subclause (I), by 
                inserting after ``therewith)'' the following: ``except 
                video bingo'';
                    (B) in subclause (I), by inserting ``(but not 
                limited to'' after ``including''; and
                    (C) in the matter following subclause (III), by 
                inserting ``, but not limited to,'' after 
                ``location)'';
            (2) in paragraph (7)(A)(ii)(II), by striking ``regarding'' 
        and inserting ``including (but not limited to)'';
            (3) in paragraph (7)(B)(i), by inserting ``(but not limited 
        to) house banking card games, parimutuel wagering, casino games 
        played with dice, wheels and similar gaming equipment,'' after 
        ``including''; and
            (4) in paragraph (8), by inserting before the period at the 
        end the following: ``including (but not limited to) slot 
        machines, 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''.
    (d) Slot Machine.--Section 4 of such Act (25 U.S.C. 2703) is 
amended by adding at the end thereof the following:
            ``(11) The term `slot machine' means any mechanical, 
        electrical, or other device, contrivance, or machine which, 
        upon insertion of a coin, token, or similar object therein, or 
        upon payment of any consideration whatsoever, is available to 
        play or operate, the play or operation of which, whether by 
        reason of the skill of the operator or application of the 
        element of chance, or both, may deliver or entitle the person 
        playing or operating the machine to receive cash or tokens to 
        be exchanged for cash or to receive merchandise or any thing of 
        value whatsoever, whether the payoff is made automatically from 
        the machine or in any other manner whatsoever, including (but 
        not limited to) any and all forms of electronic video games or 
        devices such as video poker, video bingo, video pull-tabs, 
        video keno, and video blackjack.''.

SEC. 3. CLASS II INDIAN GAMING RESTRICTED.

    (a) Regulation of Class II Gaming.--Section 11(b) of the Indian 
Gaming Regulatory Act (25 U.S.C. 2710(b)) is amended--
            (1) in paragraph (1)--
                    (A) in subparagraph (A), by striking all that 
                follows after ``entity'' and inserting the following: 
                ``which conducts the authorized gaming activity as part 
                of a commercial, for-profit business enterprise;''; and
                    (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 games 
        and methods of play of gaming activities expressly authorized 
        by the laws of the State; and''; and
            (2) in paragraph (2)--
                    (A) in subparagraph (E), by striking ``and'' at the 
                end;
                    (B) in subparagraph (F)--
                            (i) by amending clause (i) to read as 
                        follows:
                    ``(i) ensures that background investigations are 
                conducted on all financial backers, investors, 
                mortgagees, lenders, security holders, and other such 
                persons or entities as well as on primary management 
                officials, key employees of the gaming enterprise, and 
                any other person engaged in the operation of gaming or 
                the accounting of gaming assets and that oversight of 
                such officials, persons, or entities is conducted on an 
                ongoing basis; and''; and
                            (ii) in clause (ii)--
                                    (I) by amending subclause (I) to 
                                read as follows:
                            ``(I) tribal licenses for primary 
                        management officials, key employees of the 
                        gaming enterprise, and any other person engaged 
                        in the operation of gaming or the accounting of 
                        gaming assets, with prompt notification to the 
                        Commission of the issuance of such licenses;''; 
                        and
                                    (II) by striking the period at the 
                                end 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) Licensing.--Section 11(b)(4)(A) of such Act (25 U.S.C. 
2710(b)(4)(A)) is amended to read as follows:
    ``(4)(A) A tribal ordinance or resolution may provide for the 
licensing or regulation of class II gaming activities owned by any 
person or entity other than the Indian tribe and conducted on Indian 
lands, only if--
            ``(i) the regulations require that nontribally owned class 
        II gaming be conducted pursuant to limitations, including (but 
        not limited to) those on hours or periods of operation and 
        wager or pot limits, at least as restrictive as those imposed 
        under State law, and
            ``(ii) the tribal licensing requirements include the 
        requirements described in the subclauses of subparagraph (B)(i) 
        and are at least as restrictive as those established by State 
        law governing similar gaming within the jurisdiction of the 
        State within which such Indian lands are located. No person or 
        entity, other than the Indian tribe, shall be eligible to 
        receive a tribal license to own a class II gaming activity 
        conducted on Indian lands within the jurisdiction of the Indian 
        tribe if such person or entity would not be eligible to receive 
        a State license to conduct the same activity within the 
        jurisdiction of the State.''.

SEC. 4. REGULATION OF CLASS III GAMING.

    (a) State-Permitted Activities.--Section 11(d)(1) of the Indian 
Gaming Regulatory 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 the specific games 
        and methods of play of the gaming activities expressly 
        authorized by the laws of the State by any person, 
        organization, or entity which conducts the authorized gaming 
        activity as part of a commercial, for-profit business 
        enterprise,''; and
            (2) by redesignating subparagraph (C) as subparagraph (D) 
        and inserting after subparagraph (B) the following new 
        subparagraph:
            ``(C) limited to the specific games and methods of play of 
        gaming activities expressly authorized by the laws of the 
        State, and''.
    (b) State's Right of First Refusal Option.--Section 11(d)(3)(A) of 
such Act (25 U.S.C. 2710(d)(3)(A)) is amended to read as follows:
    ``(3)(A) Any Indian tribe having jurisdiction over the Indian lands 
upon which a class III gaming activity is to be conducted shall request 
in writing that the State in which such lands are located enter into 
negotiations for the purpose of entering into a Tribal-State compact 
governing the conduct of gaming activities. Upon receiving such a 
request, the State may negotiate with the Indian tribe to enter into 
such a compact, or, subject to paragraph (7) of this subsection, 
decline to enter into negotiations with the Indian tribe by informing 
the tribe in writing of such decision before the expiration of the 180-
day period following such request.''.
    (c) Tribal-State Compact Standards.--Section 11(d)(3)(C)(vi) of 
such Act (25 U.S.C. 2710(d)(3)(C)(vi)) is amended by inserting ``(but 
not limited to)'' after ``including''.
    (d) Jurisdiction.--Section 11(d)(7) of such Act (25 U.S.C. 
2710(d)(7)) is amended to read as follows:
    ``(7)(A) The United States district courts shall have jurisdiction 
over--
            ``(i) any cause of action initiated by the United States on 
        behalf of an Indian tribe arising from the failure of a State 
        to conduct negotiations under paragraph (3),
            ``(ii) any cause of action initiated by a State, the United 
        States or an Indian tribe to enjoin a class III gaming activity 
        located on Indian lands and conducted in violation of this Act 
        or Tribal-State compact entered into under paragraph (3) that 
        is in effect, and
            ``(iii) any cause of action initiated by the Secretary to 
        enforce the procedures prescribed under subparagraph (I).
    ``(B) The United States may initiate a cause of action described in 
subparagraph (A)(i) only if--
            ``(i) a 180-day period has passed since the Indian tribe 
        requested the State to enter into negotiations under paragraph 
        (3)(A),
            ``(ii) a Tribal-State compact has not been entered into 
        under paragraph (3) within one year after the date that 
        negotiations between the Indian tribe and the State commenced 
        in good faith, and
            ``(iii) the specific games and methods of play of class III 
        gaming activity are expressly authorized by the laws of the 
        State.
    ``(C) In any action described in subparagraph (A)(i), the burden of 
proof shall be upon the United States to prove that the State has 
failed to negotiate with the Indian tribe in good faith to conclude a 
Tribal-State compact governing the conduct of gaming activities. In 
determining whether a State has negotiated in good faith, the court--
            ``(i) may take into account the public interest, public 
        safety, criminality, financial integrity, and adverse economic 
        impacts on existing gaming activities on either Indian lands or 
        within the State or States concerned, or both,
            ``(ii) shall consider any demand by the State for direct 
        taxation of the Indian tribe or of any Indian lands as evidence 
        that the State has not negotiated in good faith,
            ``(iii) shall not consider a State's refusal to negotiate 
        on terms which differ from State laws and regulations regarding 
        gaming activities as evidence of failure to negotiate in good 
        faith, and
            ``(iv) shall not consider reliance upon a legal 
        interpretation, sufficient under Federal Rules of Civil 
        Procedure, rule 11, of the requirements of the Indian Gaming 
        Regulatory Act as evidence of failure to negotiate in good 
        faith.
    ``(D) It shall be a defense to an action brought under paragraph 
(3) that--
            ``(i) the tribe has not conducted negotiations with the 
        State on a good-faith basis,
            ``(ii) the tribe has conducted gaming activities on its 
        lands, or allowed gaming activities to be conducted on its 
        lands, in violation of the provisions of this Act during a 180-
        day period preceding initiation of such action, or
            ``(iii) the specific games and methods of play of the class 
        III gaming activity are not expressly authorized by the laws of 
        the State.
    ``(E) If, in any action described in subparagraph (A)(i), the court 
finds that the State has failed to negotiate in good faith with the 
Indian tribe to conclude a Tribal-State compact governing the conduct 
of gaming activities, the court shall order the State and the Indian 
tribe to conclude such a compact within a 60-day period.
    ``(F) If a State and an Indian tribe fail to conclude a Tribal-
State compact governing the conduct of gaming activities on the Indian 
lands subject to the jurisdiction of such Indian tribe within the 60-
day period provided in the order of a court issued under subparagraph 
(E), the Indian tribe and the State shall each submit to a mediator 
appointed by the court a proposed compact that represents their last 
best offer for a compact. The mediator shall select from the two 
proposed compacts the one which best comports with the terms of this 
Act and any other applicable Federal law and with the findings and 
order of the court.
    ``(G) The mediator appointed by the court under subparagraph (F) 
shall submit to the State and the Indian tribe the compact selected by 
the mediator under subparagraph (F).
    ``(H) If a State consents to a proposed compact during the 60-day 
period beginning on the date on which the proposed compact is submitted 
by the mediator to the State under subparagraph (G), the proposed 
compact shall be treated as a Tribal-State compact entered into under 
paragraph (3).
    ``(I) If the State does not consent during the 60-day period 
described in subparagraph (H) to a proposed compact submitted by a 
mediator under subparagraph (G), the mediator shall notify the 
Secretary and the Secretary shall prescribe, in consultation with the 
Indian tribe, procedures--
            ``(i) which are consistent with the proposed compact 
        selected by the mediator under subparagraph (F), the provisions 
        of this Act, and the relevant provisions of the laws of the 
        State, and
            ``(ii) under which class III gaming may be conducted on the 
        Indian lands over which the Indian tribe has jurisdiction.
    ``(J) If the State expressly declines to negotiate for a Tribal-
State compact pursuant to paragraph (3)(A), or if the State does not 
consent during the 60-day period described in subparagraph (H) to a 
proposed compact submitted by a mediator under subparagraph (G), the 
tribe, in the former case, may notify the Secretary, or the mediator, 
in the latter case, shall notify the Secretary and the Secretary shall 
prescribe upon such notification, in consultation with the Indian 
tribe, procedures--
            ``(i) which are consistent with, where applicable, the 
        proposed compact selected by the mediator under subparagraph 
        (F), the provisions of this Act, and the relevant provisions of 
        the laws of the State, and
            ``(ii) under which class III gaming may be conducted on the 
        Indian lands over which the tribe has jurisdiction.
    ``(K) For the purposes of this section, failure of the State to 
expressly decline a tribal request to enter into negotiations for a 
Tribal-State compact within the 180-day period under paragraph (3)(A) 
shall be deemed a declination, whereupon the tribe may notify the 
Secretary under subparagraph (J) for the prescription of procedures 
allowing for class III gaming.
    ``(L) A mediator appointed by the court may not select a proposed 
compact within a State that violates an existing law of that State 
regulating class III gaming, or construe an authorization by a State of 
one form of class III gaming as an authorization for all forms of class 
III gaming.''.
    (e) Changes in State or Tribal Law.--Section 11(d) of such Act (25 
U.S.C. 2710(d)) is amended by adding at the end the following:
    ``(10) Except as provided by paragraph (2)(D), a State or tribe may 
request in writing to enter into negotiations based on the enactment or 
adoption of a State law or tribal ordinance or resolution that amends, 
repeals, or otherwise affects a Tribal-State compact in effect pursuant 
to this subsection. A request under this paragraph shall be treated as 
a request made under paragraph (3), except that the Tribal-State 
compact shall remain in effect and gaming may be conducted pursuant to 
such compact during the negotiation process.''.

SEC. 5. NONRESERVATION LANDS; GAMING ON AFTER ACQUIRED LANDS.

    (a) Prohibition.--Subsection (a) of section 20 of the Indian Gaming 
Regulatory Act (25 U.S.C. 2719(a)) is amended to read as follows:
    ``(a) Gaming regulated by this Act shall not be conducted on Indian 
lands which, on or after October 17, 1988, are acquired by any Indian 
tribe, are taken into trust by the United States, or are first subject 
to a restriction against alienation by the United States unless--
            ``(1) such lands are located in Oklahoma and are within the 
        boundaries of the Indian tribe's former reservation, as defined 
        by the Secretary, or
            ``(2) such lands are located in a State other than Oklahoma 
        and are within the Indian tribe's last recognized reservation 
        within the State or States within which such Indian tribe is 
        presently located.''.
    (b) Repeal.--Subsection (b) of section 20 of the Indian Gaming 
Regulatory Act (25 U.S.C. 2719(a)) is repealed and subsections (c) and 
(d) are redesignated as subsections (b) and (c), respectively.

SEC. 6. REPORTING AND BOOKKEEPING.

    The Indian Gaming Regulatory Act (25 U.S.C. 2701 et seq.) is 
amended by inserting after section 21 the following new section:

                      ``reporting and bookkeeping

    ``Sec. 21A. (a) Within 90 days after the date of the enactment of 
this section, the Secretary of the Treasury shall issue such 
regulations as may be necessary to require gaming establishments 
authorized pursuant to this Act to be subject to the same reporting and 
recordkeeping requirements as those which are applicable to a casino or 
gambling casino referred to in section 103.11(i)(7)(i) of part 103 of 
title 31 of the Code of Federal Regulations in order to ensure a high 
degree of usefulness in criminal, tax, and regulatory matters.
    ``(b) In the administration of this Act, an authorization provided 
by a State for one form of class III gaming shall not be construed as 
an authorization of all forms of class III gaming for purposes of 
negotiations between a State and a tribe.
    ``(c) In the administration of this Act, the United States district 
courts shall have sole jurisdiction over contract disputes between 
tribes and contract operators of Indian gaming establishments.''.

SEC. 7. BACKGROUND INVESTIGATIONS.

    (a) Role of Attorney General.--The Indian Gaming Regulatory Act (25 
U.S.C. 2701 et seq.), as amended by section 5 of this Act, is amended 
by inserting after section 21A the following new section:

                      ``background investigations

    ``Sec. 21B. (a) The Attorney General shall conduct background 
investigations--
            ``(1) to determine the suitability of each individual, 
        person or entity (including individuals comprising such entity, 
        serving on the board of directors of a corporation, and 
        stockholders of a corporation) listed in section 12(a)(1)(A) to 
        be involved in class III gaming activities under this Act;
            ``(2) to determine the suitability of any financial backer, 
        investor, mortgagee, lender, security holder, or other such 
        person or entity to be involved in class III gaming activities 
        under this Act;
            ``(3) to determine the suitability of any primary 
        management official, or key employee of a class III gaming 
        activity under this Act, or any other person or entity engaged 
        in class III gaming activities, or the accounting of class III 
        gaming assets, under this Act, to continue to engage in such 
        activities;
            ``(4) to assist the Commission in carrying out sections 
        7(b) and 12; and
            ``(5) otherwise necessary with respect to implementing 
        class III gaming activities pursuant to this Act.
    ``(b) For the purposes of this Act, a background investigation 
shall include (but not be limited to)--
            ``(1) criminal history, especially criminal history with 
        respect to organized crime;
            ``(2) taxpayer return and return information;
            ``(3) immigration information;
            ``(4) records, held by any entity of the Federal 
        Government, which are not described in paragraphs (1), (2), or 
        (3); and
            ``(5) records held by State entities.
    ``(c) For the purposes of subsection (b)--
            ``(1) the Attorney General is authorized to utilize the 
        system devised under section 242(a)(3)(A)(i) of the Immigration 
        and Nationality Act to determine if an individual is an alien; 
        and
            ``(2) returns and return information (as such terms are 
        defined in section 6103(b) of the Internal Revenue Code of 
        1986) shall be open to inspection by, or disclosure to, the 
        Attorney General and other officers and employees of the 
        Department of Justice and the Commission, subject to the 
        procedures and recordkeeping required under subsection (p) of 
        such section 6103(b).''.
    (b) Conforming Amendments.--(1) Paragraph (3) of section 7(b) of 
such Act (25 U.S.C. 2706(b)) is amended to read as follows:
            ``(3) in consultation with the Attorney General pursuant to 
        section 21B, shall conduct or cause to be conducted such 
        background investigations as may be necessary to carry out the 
        duties of the Commission under this Act with respect to class 
        II gaming;''.
    (2) Section 12 of such Act (25 U.S.C. 2711), as amended by section 
3 of this Act, is amended--
            (A) in subsection (a)(1), by striking ``the Commission 
        shall'' and inserting ``the Commission, in consultation with 
        the Attorney General pursuant to section 21B, shall''; and
            (B) in subsection (e), by striking ``the Commission 
        determines'' and inserting ``the Commission, in consultation 
        with the Attorney General pursuant to section 21B, 
        determines''.

SEC. 8. CRIMINAL LAWS.

    Section 1166 of title 18, United States Code, is amended to read as 
follows:
``Sec. 1166. Gambling Indian country
    ``(a) Subject to subsection (c), for purposes of Federal law, all 
State laws pertaining to the licensing, regulation, or prohibition of 
gambling, including (but not limited to) criminal sanctions applicable 
thereto, shall apply in Indian country in the State in the same manner 
and to the same extent as such laws apply elsewhere in the State.
    ``(b) Whoever in Indian country is guilty of any act or omission 
involving gambling, whether or not conducted or sanctioned by an Indian 
tribe, which, although not made punishable by any enactment of 
Congress, would be punishable if committed or omitted within the 
jurisdiction of the State in which the act or omission occurred, under 
the laws governing the licensing, regulation, or prohibition of 
gambling in force at the time of such act or omission, shall be guilty 
of a like offense and subject to a like punishment.
    ``(c) For the purpose of this section, the term `gambling' does not 
include--
            ``(1) class I gaming or class II gaming regulated by the 
        Indian Gaming Regulatory Act, or
            ``(2) class III gaming conducted under a Tribal-State 
        compact approved by the Secretary of the Interior under section 
        11(d)(8) of the Indian Gaming Regulatory Act that is in effect.
    ``(d) The United States shall have exclusive jurisdiction over 
criminal prosecutions of violations of State gambling laws that are 
made applicable under this section to Indian country, unless--
            ``(1) an Indian tribe pursuant to a Tribal-State compact 
        approved by the Secretary of the Interior under section 
        11(d)(8) of the Indian Gaming Regulatory Act, or under any 
        other provision of Federal law, has consented to the transfer 
        to the State of criminal jurisdiction with respect to gambling 
        on the lands of the Indian tribe, or
            ``(2) authority has been granted to a State to enforce the 
        criminal laws of the State on Indian lands within the State 
        pursuant to section 1162 of this title, or any other provision 
        of Federal law which authorizes exercise of such criminal 
        jurisdiction by a State, which authority shall be concurrent 
        with the United States with respect to violations also made 
        violations of Federal law under subsection (a) of this 
        section.''.

                                 <all>

S 1035 IS----2