[Congressional Bills 103th Congress]
[From the U.S. Government Publishing Office]
[S. 2230 Introduced in Senate (IS)]

103d CONGRESS
  2d Session
                                S. 2230

               To amend the Indian Gaming Regulatory Act.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                June 23 (legislative day, June 7), 1994

Mr. Inouye (for himself and Mr. McCain) 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.

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

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Indian Gaming Regulatory Act 
Amendments Act of 1994''.

SEC. 2. AMENDMENTS.

    The Indian Gaming Regulatory Act (25 U.S.C. 2701 et seq.) is 
amended as follows:
            (1) Section 2 of the Act (25 U.S.C. 2701) is amended to 
        read as follows:

``SEC. 2. FINDINGS REGARDING INDIAN GAMING.

    ``The Congress finds that--
            ``(1) Indian tribal governments are engaged in the 
        operation of gaming activities on Indian lands as a means of 
        generating tribal governmental revenue and are licensing such 
        activities;
            ``(2) clear Federal standards and regulations for the 
        conduct of gaming on Indian lands will assist tribal 
        governments in assuring the integrity of gaming activities 
        conducted on Indian lands;
            ``(3) a principal goal of the United States' Federal-Indian 
        policy is to promote tribal economic development, tribal self-
        sufficiency, and strong tribal government;
            ``(4) while Indian tribal governments have the right to 
        regulate the operation of gaming activities on Indian lands if 
        such gaming activities are not specifically prohibited by 
        Federal law and are conducted within a State which does not 
        prohibit such activities as a matter of criminal law and public 
        policy, the Congress has the authority to regulate the 
        privilege of doing business in Indian country;
            ``(5) systems for the regulation of gaming activities on 
        Indian lands should conform to federally-established minimum 
        regulatory requirements;
            ``(6) the operation of gaming activities on Indian lands 
        has had a significant impact on commerce with foreign nations, 
        among the several States and with the Indian tribes; and
            ``(7) the United States Constitution vests the Congress 
        with the powers to `* * * regulate Commerce with foreign 
        Nations, and among the several States, and with the Indian 
        tribes * * *' and this Act is enacted in the exercise of those 
        powers.''.
            (2) Section 3 of the Act (25 U.S.C. 2702) is amended as 
        follows:

``SEC. 3. DECLARATION OF POLICY REGARDING INDIAN GAMING.

    ``The purpose of this Act is--
            ``(1) to provide a statutory basis for the conduct of 
        gaming activities on Indian lands as a means of promoting 
        tribal economic development, self-sufficiency, and strong 
        tribal governments;
            ``(2) to provide a statutory basis for the regulation of 
        gaming activities on Indian lands by an Indian tribal 
        government adequate to shield such activities from organized 
        crime and other corrupting influences, to ensure that an Indian 
        tribal government is the primary beneficiary of the operation 
        of gaming activities, and to ensure that gaming is conducted 
        fairly and honestly by both the operator and players; and
            ``(3) to declare that the establishment of independent 
        Federal regulatory authority for the conduct of gaming 
        activities on Indian lands, the establishment of Federal 
        standards for the conduct of gaming activities on Indian lands, 
        and the establishment of a National Indian Gaming Commission 
        are necessary to address congressional concerns regarding the 
        conduct of gaming activities on Indian lands and to protect 
        such gaming as a means of generating tribal revenue.''.
            (3) Section 4 of the Act (25 U.S.C. 2703) is amended as 
        follows:

``SEC. 4. DEFINITIONS.

    ``For purposes of this Act:
            ``(1) The term `Attorney General' means the Attorney 
        General of the United States.
            ``(2) The term `banking game' means any game of chance that 
        is played with the house as a participant in the game, where 
        the house takes on all players, collects from all losers, and 
        pays all winners, and the house can win.
            ``(3) The term `Chairman' means the Chairman of the 
        National Indian Gaming Commission.
            ``(4) The term `Class I gaming' means social games played 
        solely for prizes of minimal value or traditional forms of 
        Indian gaming engaged in by individuals as a part of, or in 
        connection with, tribal ceremonies or celebrations.
            ``(5)(A) The term `Class II gaming' means--
                    ``(i) the game of chance commonly known as bingo or 
                lotto (whether or not electronic, computer, of other 
                technologic aids are used in connection therewith)--
                            ``(I) which is played for prizes, including 
                        monetary prizes,
                            ``(II) in which the holder of the card 
                        covers such numbers or designations when 
                        objects, similarly numbered or designated, are 
                        drawn or electronically determined, and
                            ``(III) in which the game is won by the 
                        first person covering a previously designated 
                        arrangement of numbers or designations on such 
                        cards,
                including, if played in the same location, pull-tabs, 
                punch boards, tip jars, instant bingo, and other games 
                similar to bingo, and
                    ``(ii) card games that--
                            ``(I) are explicitly authorized by the laws 
                        of the State, or
                            ``(II) are not prohibited as a matter of 
                        State criminal law and are legally played at 
                        any location in the State, but only if such 
                        card games are played in conformity with those 
                        laws and regulations (if any) of the State 
                        regarding hours or periods of operation of such 
                        card games or limitations on wagers or pot 
                        sizes in such card games.
            ``(B) The term `Class II gaming' does not include--
                    ``(i) any banking card games, including baccarat, 
                chemin de fer, or blackjack (21) or
                    ``(ii) gambling devices as defined in section 
                1(a)(2) or section 1(a)(3) of the Act of January 2, 
                1951 (15 U.S.C. 1171(a) (2) or (3)), or slot machines 
                of any kind.
            ``(6) The term `Class III gaming' means all forms of gaming 
        that are not class I gaming or class II gaming.
            ``(7) The term `Commission' means the National Indian 
        Gaming Commission established pursuant to section 5 of this 
        Act.
            ``(8) The term `compact' means the regulatory regime for 
        operating class III gaming entered into either by a tribe and 
        the Secretary, or a tribe and a State, published pursuant to 
        section 10 of this Act, and includes procedures in lieu of a 
        compact published by the Secretary prior to the effective date 
        of the Indian Gaming Regulatory Act Amendments Act of 1994.
            ``(9) The term `electronic, computer, or other technologic 
        aid' means a device, such as a computer, telephone, cable, 
        television, satellite, or bingo blower, which, when used--
                    ``(A) is not a game of chance, a gambling device, 
                or a slot machine;
                    ``(B) merely assists a player or the playing of a 
                game; and
                    ``(C) is operated according to applicable Federal 
                communications law.
            ``(10) The term `electronic or electromechanical facsimile' 
        means any gambling device as defined in section 1(a)(2) or 
        section 1(a)(3) of the Act of January 2, 1951 (15 U.S.C. 
        1171(a) (2) or (3)).
            ``(11) The term `gambling device' means any gambling device 
        as defined in section 1(a)(2) or section 1(a)(3) of the Act of 
        January 2, 1951 (15 U.S.C. 1171(a) (2) or (3)), including any 
        electronic or electromechanical facsimile.
            ``(12) The term `gaming activity' means a game of chance, 
        whether electronic, electromechanical or otherwise, that is 
        distinguished from another game of chance by its principal 
        characteristics.
            ``(13) The term `gaming-related contract' means any 
        agreement under which an Indian tribe or its agent procures 
        gaming materials, supplies, equipment or services which are 
        used in the conduct of a class II or class III gaming activity, 
        or financing contracts or agreements for any facility in which 
        a gaming activity is to be conducted.
            ``(14) The term `gaming-related contractor' means any 
        person, corporation, partnership or other entity entering into 
        a gaming-related contract with an Indian tribe or its agent, 
        including any person, corporation, partnership or other entity 
        among which there is common ownership.
            ``(15) The term `gaming service industry' means any form of 
        enterprise which provides goods or services which are used in 
        conjunction with any class II or class III gaming activity, 
        including, without limitation, travel services, security, 
        gaming schools, manufacturers, distributors and servicers of 
        gaming devices, garbage haulers, linen suppliers, maintenance 
        and cleaning services, food and non-alcohol beverage purveyors 
        and construction companies.
            ``(16) The term, `key employee' means any natural person 
        employed in a gaming operation licensed pursuant to this Act in 
        a supervisory capacity or empowered to make any discretionary 
        decision with regard to the gaming operation, including, 
        without limitation, pit bosses, shift bosses, credit 
        executives, cashier supervisors, gaming facility managers and 
        assistant managers, and managers or supervisors of security 
        employees.
            ``(17) The term `lottery game' means a scheme for the 
        distribution of a prize by chance where multiple players pay 
        for the opportunity to win the prize and select a chance either 
        (A) from a finite number of chances where the winning 
        combinations are predetermined but concealed prior to purchase 
        and the selection of each choice depletes the number of chances 
        remaining, or (B) where the winner or winners are determined by 
        random selection after all entries are completed, including 
        where a time limit for entry has passed, when a predetermined 
        number of players have entered, or when a predetermined sum of 
        money has been wagered.
            ``(18) The term `net revenues' means gross revenues of an 
        Indian gaming activity less amounts paid out as, or paid for, 
        prizes and total operating expenses, excluding management fees.
            ``(19) The term `notify' means the act of sending a notice 
        in writing, delivered by certified mail, with receipt 
        requested, to the chief executive officer, and the chief legal 
        officer of a State or of an Indian tribe; and, for purposes of 
        this Act, the date of notification shall be the actual date of 
        receipt as evidenced by the return receipt.
            ``(20) The term `other games of chance' means any class III 
        gaming activity which is not a gambling device, a lottery game, 
        a banking game, or parimutuel wagering.
            ``(21) The term `parimutuel wagering' means a system of 
        betting on contests involving humans or animals in which bets 
        are pooled and the winners are paid according to odds 
        determined by the volume of betting on the entries, with or 
        without a deduction for the operator.
            ``(22) The term `person' means an Indian tribe, individual, 
        firm, corporation, association, partnership, trust, consortium, 
        joint venture, or commercial entity.
            ``(23) The term `principal characteristics' means the pace 
        of play, complexity or type of choices for the player, 
        appearance of the activity, nature of the interaction with the 
        operator, other players or machine, and other attributes of a 
        gaming activity which would be perceived by and be significant 
        to a player familiar with games of chance.
            ``(24) The term `prohibited as a matter of State criminal 
        law' means an activity in a State which, under the law of that 
        State, is subject to prosecution and a criminal sanction.
            ``(25) The term `Secretary' means the Secretary of the 
        Interior.
            ``(26) the term `slot machine' means any player activated 
        gaming device involving mechanical, electronic, 
        electromechanical, or computer technology, or any combination 
        thereof which--
                    ``(A) accepts anything of monetary value, whether 
                coin, currency or tokens, to initiate the operation of 
                the gaming device;
                    ``(B) has as an integral part, a system of 
                generating infinite random numbers or combinations 
                thereof, which determine the successful operation of 
                the device;
                    ``(C) rewards the successful operation of the 
                device with anything of monetary value; and
                    ``(D) rewards the successful operation of the 
                device solely on the basis of chance.
            ``(27) The term `social gaming activity' means a gaming 
        activity which is not--
                    ``(A) a commercial, governmental, charitable or 
                systematic gaming enterprise;
                    ``(B) where no person, organization or entity other 
                than the participants obtains or receives money or 
                something of more than minimal value from the gaming 
                activity, whether by taking a percentage of wagers or 
                winnings or by banking the game;
                    ``(C) where no person, organization or entity 
                charges admission or other fees to participate in the 
                game; and
                    ``(D) where such gaming activity is not conducted 
                in places ordinarily and regularly used for gaming and 
                is only played for nominal value.''.
            (4) Section 5 of the Act (25 U.S.C. 2704) is amended to 
        read as follows:

``SEC. 5. ESTABLISHMENT OF THE NATIONAL INDIAN GAMING COMMISSION.

    ``(a) There is established as an independent agency of the United 
States a Commission to be known as the National Indian Gaming 
Commission.
    ``(b)(1) Composition of the Commission.--The Commission shall be 
composed of five full-time members who shall be appointed by the 
President with the advice and consent of the Senate.
    ``(2) Each member of the Commission shall be a citizen of the 
United States.
    ``(3) Each member of the Commission shall devote his entire time 
and attention to the business of the Commission and shall not--
            ``(A) pursue any other business or occupation or hold any 
        other office;
            ``(B) be actively engaged in or have any direct pecuniary 
        interest in gaming activities;
            ``(C) have any pecuniary interest in any business or 
        organization holding a gaming license under this Act or doing 
        business with any person or organization licensed under this 
        Act.
            ``(D) have been convicted of a felony or gaming offense; or
            ``(E) have any financial interest in, or management 
        responsibility for, any gaming-related contract or any other 
        contract approved pursuant to this Act.
    ``(4) Not more than three of such members of the Commission shall 
be members of the same political party and in making appointments, 
members of different political parties shall be appointed alternatively 
as nearly as may be practicable.
    ``(5) At least two members of the Commission shall be enrolled 
members of any Indian tribe.
    ``(6) The Commission shall be composed of the most qualified 
persons available, provided--
            ``(A) one member of the Commission must be a certified 
        public accountant with at least 5 years of progressively 
        responsible experience in accounting and auditing, and a 
        comprehensive knowledge of the principles and practices of 
        corporate finance; and
            ``(B) one member of the Commission must be selected with 
        special reference to his training and experience in the fields 
        of investigation or law enforcement.
    ``(7) The Attorney General of the Untied States shall conduct a 
background investigation on any person considered for appointment to 
the Commission, with particular regard to the nominee's financial 
stability, integrity, and responsibility and his reputation for good 
character, honesty, and integrity.
    ``(c) Terms of Office.--(1) Each member of the Commission shall 
hold office of a term of five years.
    ``(2) Initial appointments to the Commission shall be for terms as 
follows--
            ``(A) the Chairman for 5 years;
            ``(B) one member for 4 years;
            ``(C) one member of 3 years; and
            ``(D) and the remaining members for terms of 2 years each.
    ``(3) After the initial appointments, all members shall be 
appointed for terms of 5 years; provided that no member shall serve 
more than two terms of 5 years each.
    ``(d) Vacancies.--(1) The persons appointed by the President to 
serve as Chairman and members of the Commission shall serve in such 
capacities throughout their entire terms and until their successors 
shall have been duly appointed and qualified, unless the Chairman or a 
member of the Commission has been removed for cause under paragraph (2) 
of this subsection.
    ``(2) The Chairman or any member of the Commission may only be 
removed from office before the expiration of their term of office by 
the President for neglect of duty, or malfeasance in office, or for 
other good cause shown.
    ``(3) Appointments to fill vacancies on the Commission shall be for 
the unexpired term of the member to be replaced.
    ``(e) Quorum.--Three members of the Commission, at least one of 
which is the Chairman or Vice Chairman, shall constitute a quorum.
    ``(f) Chairman.--The President shall designate one of the five 
members of the Commission to serve as Chairman of the Commission.
    ``(g) Vice Chairman.--The Commission shall select, by majority 
vote, one of the members of the Commission to serve as Vice Chairman. 
The Vice Chairman shall serve as Chairman of the Commission in the 
Chairman's absence and shall exercise such other powers as may be 
delegated by the Chairman.
    ``(h) Meetings.--(1) The Commission shall meet at the call of the 
Chairman or a majority of its members.
    ``(2) A majority of the members of the Commission shall determine 
any action of the Commission.
    ``(i) Compensation.--(1) The Chairman of the Commission shall be 
paid at a rate equal to that of level III of the Executive Schedule 
under section 5316 of title 5, United States Code.
    ``(2) The members of the Commission shall each be paid at a rate 
equal to that of level IV of the Executive Schedule under section 5316 
of title 5, United States Code.
    ``(3) All members of the Commission shall be reimbursed in 
accordance with title 5, United States Code, for travel, subsistence, 
and other necessary expenses incurred by them in the performance of 
their duties.''.
    (5) Section 6 of the Act (25 U.S.C. 2705) is amended to read as 
follows:

``SEC. 6. POWERS OF THE CHAIRMAN.

    ``(a) The Chairman shall serve as the chief executive officer of 
the Commission.
    ``(b) Subject to the provisions of subsection (c) of this section, 
the Chairman shall--
            ``(1) employ and supervise such personnel as is deemed 
        necessary to carry out the functions of the Commission, and 
        assign work among such personnel;
            ``(2) use and expend Federal funds and funds collected 
        pursuant to section 15 of this Act; and
            ``(3) contract for the services of other professional, 
        technical and operational personnel and consultants as may be 
        necessary to the performance of the Commission's 
        responsibilities under this Act.
    ``(c) In carrying out any of the functions pursuant to this 
section, the Chairman shall be governed by the general policies of the 
Commission and by such regulatory decisions, findings and 
determinations as the Commission may by law be authorized to make.''.
    (6) Section 7 of the Act (25 U.S.C. 2706) is amended to read as 
follows:

``SEC. 7. POWERS AND AUTHORITY OF THE COMMISSION.

    ``(a) General Powers.--The Commission shall have the power to--
            ``(1) approve the annual budget of the Commission;
            ``(2) adopt regulations to carry out the provisions of this 
        Act;
            ``(3) exercise the law enforcement powers necessary to 
        fulfill the purposes of this Act and the regulations 
        promulgated thereunder;
            ``(4) establish a rate of fees and assessments as provided 
        in section 15 of this Act;
            ``(5) conduct investigations;
            ``(6) issue a temporary order closing the operation of 
        gaming activities;
            ``(7) after a hearing, make permanent a temporary order 
        closing the operation of gaming activities as provided in 
        section 13 of this Act;
            ``(8) grant, deny, limit, condition, restrict, revoke or 
        suspend any license issued pursuant to this Act or fine any 
        person licensed pursuant to this Act for any cause deemed 
        reasonable by the Commission;
            ``(9) inspect and examine all premises located on Indian 
        lands on which class II or class III gaming is conducted;
            ``(10) demand access to and inspect, examine, photocopy, 
        and audit all papers, books, and records of Class II and Class 
        III gaming activities conducted on Indian lands and any other 
        matters necessary to carry out the duties of the Commission 
        under this Act;
            ``(11) use the United States mail in the same manner and 
        under the same conditions as any department or agency of the 
        United States;
            ``(12) procure supplies, services, and property by contract 
        in accordance with applicable Federal laws and regulations;
            ``(13) enter into contracts with Federal, State, tribal, 
        and private entities for activities necessary to the discharge 
        of the duties of the Commission;
            ``(14) serve or cause to be served its process or notices 
        in a manner provided for by the Commission or in a manner 
        provided for the service of process and notice in civil actions 
        in accordance with the rules of a tribal, State or Federal 
        court;
            ``(15) propound written interrogatories and appoint hearing 
        examiners, to whom may be delegated the power and authority to 
        administer oaths, issue subpoenas, propound written 
        interrogatories, and require testimony under oath;
            ``(16) conduct all hearings pertaining to civil violations 
        of this Act or regulations promulgated thereunder;
            ``(17) collect all fees and assessments imposed by this Act 
        and the regulations promulgated thereunder;
            ``(18) assess penalties for the violation of provisions of 
        this Act and the regulations promulgated thereunder;
            ``(19) provide training and technical assistance to Indian 
        tribal governments in all aspects of the conduct and regulation 
        of gaming activities; and
            ``(20)(A) in addition to its existing authority, the 
        Commission shall have the authority to delegate, by published 
        order or rule, any of its functions to a division of the 
        Commission, an individual member of the Commission, an 
        administrative law judge, or an employee, including functions 
        with respect to hearing, determining, ordering, certifying, 
        reporting, or otherwise acting as to any work, business, or 
        matter;
            ``(B) nothing in this section shall be deemed to authorize 
        the delegation of the function of rule-making as defined in 
        subchapter II of chapter 5 of title 5 of the United States 
        Code, with reference to general rules as distinguished from 
        rules of particular applicability, or the making of any rule;
            ``(C) with respect to the delegation of any of its 
        functions, the Commission shall retain a discretionary right to 
        review the action of any division of the Commission, individual 
        member of the Commission, administrative law judge, or 
        employee, upon its own initiative;
            ``(D) the vote of one member of the Commission shall be 
        sufficient to bring any such action before the Commission for 
        review; and
            ``(E) if the right to exercise such review is declined, or 
        if no such review is sought within the time stated in the rules 
        promulgated by the Commission, then the action of any such 
        division of the Commission, individual member of the 
        Commission, administrative law judge, or employee, shall, for 
        all purposes, including appeal or review thereof, be deemed the 
        action of the Commission.''
    ``(b) Regulatory Authority.--The Commission shall--
            ``(1) approve all gaming-related contracts;
            ``(2) establish minimum regulatory requirements for 
        background investigations, licensing of persons and licensing 
        of gaming operations associated with the conduct of class II 
        and class III gaming on Indian lands by tribal governments;
            ``(3) establish minimum internal control requirements for 
        the operation of class II and class III gaming activities on 
        Indian lands, including but not limited to--
                    ``(A) surveillance and security personnel and 
                systems capable of monitoring all gaming activities 
                including the conduct of games, cashiers' cages, change 
                booths, count rooms, movements of cash and chips, 
                entrances and exits to gaming facilities and other 
                critical areas of any gaming facility;
                    ``(B) the rules for the play of games and controls 
                related to such rules;
                    ``(C) credit and debit collection controls;
                    ``(D) controls over gambling devices and equipment; 
                and
                    ``(E) accounting and auditing;
            ``(4) inspect and examine all premises located on Indian 
        lands on which class II or class III gaming is conducted;
            ``(5)(A) monitor and regulate the background investigations 
        conducted by tribal governments of persons involved in a class 
        II gaming operation, including but not limited to key employees 
        of any licensed gaming operation, gaming-related contractors, 
        and any persons who have a material involvement, either 
        directly or indirectly, with a licensed gaming operation, to 
        assure that background investigations are consistent with the 
        minimum regulatory requirements for background investigations 
        established by the Commission.
            ``(B) monitor and regulate the licensing by tribal 
        governments of persons involved in a class II gaming operation, 
        including but not limited to key employees of any licensed 
        gaming operation, gaming-related contractors, gaming service 
        industries, and any persons having a material involvement, 
        either directly or indirectly, with a licensed gaming 
        operation, gaming related contractor or gaming service 
        industry, to assure that such licensing is consistent with the 
        minimum regulatory requirements for the licensing of persons 
        established by the Commission;
            ``(C) monitor and regulate the licensing by tribal 
        governments of class II gaming operations to assure that such 
        licensing is consistent with the minimum regulatory 
        requirements for the licensing of gaming operations established 
        by the Commission;
            ``(D) except that where a tribal government's system for 
        the conduct of background investigations, the licensing of 
        persons or the licensing of gaming operations fails to meet the 
        minimum regulatory background investigation or licensing 
        requirements established by the Commission, the Commission's 
        authority to conduct background investigations, to license and 
        directly regulate Class II gaming activities conducted on 
        Indian lands shall be exclusive until such time as the 
        Commission determines that the regulation of Class II gaming 
        activities on Indian lands by a tribal government meets the 
        established minimum regulatory requirements;
            ``(6)(A) monitor and regulate a tribal gaming operation and 
        the tribal government's system for internal controls to assure 
        that such system is consistent with the minimum regulatory 
        requirements for internal controls established by the 
        Commission;
            ``(B) except that where a tribal government's system for 
        internal controls fails to meet the minimum internal control 
        requirements established by the Commission, the Commission's 
        authority to directly establish and regulate internal control 
        systems associated with Class II gaming activities shall be 
        exclusive until such time as the Commission determines that the 
        regulation of Class II gaming activities on Indian lands by a 
        tribal government meets the minimum internal control 
        requirements established by the Commission;
            ``(7) monitor and regulate Class III gaming activities 
        conducted on Indian lands, and have the exclusive authority 
        to--
                    ``(A) license--
                            ``(i) Class III gaming operations conducted 
                        on Indian lands;
                            ``(ii) key employees of all licensed Class 
                        III gaming operations conducted on Indian 
                        lands;
                            ``(iii) any persons having a material 
                        involvement, either directly or indirectly, 
                        with a licensed Class III gaming operations 
                        conducted on Indian lands;
                            ``(iv) gaming-related contractors, 
                        including but not limited to any vendor or 
                        supplier of gaming equipment or gambling 
                        devices associated with a licensed class III 
                        gaming operation;
                            ``(v) gaming service industries pursuant to 
                        which an Indian tribal government or its agent 
                        enters into an agreement in excess of $10,000 
                        for the procurement of materials, supplies, 
                        equipment or services which are used in 
                        association with a licensed Class III gaming 
                        operation, or financing contracts or agreements 
                        with a gaming service industry in excess of 
                        $10,000 associated with any facility which is 
                        used in association with a licensed Class III 
                        gaming activity; and
                            ``(vi) any other person or company or other 
                        entity for which the Commission may require 
                        licensure;
                    ``(B) conduct background investigations on--
                            ``(i) key employees of any licensed class 
                        III gaming operation conducted on Indian lands;
                            ``(ii) principal investors having a 
                        material involvement, either directly or 
                        indirectly, with a licensed class III gaming 
                        operation;
                            ``(iii) principal gaming-related 
                        contractors; and
                            ``(iv) any other person or company or other 
                        entity for which the Commission may require a 
                        background investigation;
                    ``(C) the Commission shall make a determination as 
                to principal investors and principal gaming-related 
                contractors;
            ``(8)(A) in the context of a compact entered into by a 
        tribal government with a state government, monitor and regulate 
        the conduct of background investigations of (i) non-principal 
        investors having a material involvement, either directly or 
        indirectly, with a licensed Class III gaming operation; (ii) 
        non-principal gaming-related contractors, including but not 
        limited to vendors or suppliers of gaming equipment or gambling 
        devices associated with a licensed Class III gaming operation, 
        and (iii) non-principal key employees of any licensed Class III 
        gaming operation; either in conjunction with Indian tribal 
        governments or state governments, or both;
            ``(B) except that where the regulatory system of a tribal 
        government or a state government, or both, for the conduct of 
        background investigations fails to meet minimum regulatory 
        requirements established by the Commission for the conduct of 
        background investigations, the Commission shall have the 
        exclusive authority to conduct background investigations until 
        such time as the regulatory system of a tribal government or a 
        state government, or both, meet the minimum regulatory 
        requirements established by the Commission for the conduct of 
        background investigations;
            ``(9)(A) in the context of a compact entered into by a 
        tribal government with the Secretary of the Interior, monitor 
        and regulate the conduct of background investigations of (i) 
        non-principal investors having a material involvement, either 
        directly or indirectly, with a licensed Class III gaming 
        operation; (ii) non-principal gaming-related contractors, 
        including but not limited to vendors or suppliers of gaming 
        equipment or gambling devices associated with a licensed Class 
        III gaming operation, and (iii) non-principal key employees of 
        any licensed Class III gaming operation; in conjunction with an 
        Indian tribal government to assure that the tribal government's 
        system for the conduct of background investigations is 
        consistent with the minimum regulatory requirements for 
        backgrounds investigations established by the Commission;
            ``(B) except that where the regulatory system of a tribal 
        government for the conduct of background investigations fails 
        to meet minimum regulatory requirements established by the 
        Commission for the conduct of background investigations, the 
        Commission shall have the exclusive authority to conduct 
        background investigations until such time as the regulatory 
        system of a tribal government meets the minimum regulatory 
        requirements established by the Commission for the conduct of 
        background investigations;
            ``(10)(A) monitor and regulate the internal control systems 
        associated with a licensed class III gaming operation to assure 
        that such systems are consistent with the minimum regulatory 
        requirements for internal controls established by the 
        Commission;
            ``(B) except that where the internal control systems fail 
        to meet the minimum internal control requirements established 
        by the Commission, the Commission's authority to directly 
        establish and regulate internal control systems associated with 
        a licensed class III gaming operation shall be exclusive until 
        such time as the Commission determines that the internal 
        control systems meet the minimum internal control requirements 
        established by the Commission;
    ``(c) Licensing.--(1) A license approved by the Commission shall be 
required of--
            ``(A) any person having a material involvement, either 
        directly or indirectly, with a licensed gaming operation;
            ``(B) any person having a material involvement, either 
        directly or indirectly, with a gaming-related contract;
            ``(C) any gaming-related contractor, including but not 
        limited to any vendor or supplier of gaming equipment or 
        gambling devices associated with a licensed gaming operation;
            ``(D) any gaming service industry for which the Commission 
        may require licensure;
            ``(E) any gaming operation, including the management of any 
        gaming operation; and
            ``(F) any other person or company or other entity for which 
        the Commission may require licensure.
    ``(2)(A) The Commission may issue a statement of compliance to an 
applicant for any license or for qualification status under this Act at 
any time the Commission is satisfied that one or more particular 
eligibility criteria have been satisfied by an applicant.
    ``(B) Such statement shall specify the eligibility criterion 
satisfied, the date of such satisfaction and a reservation to the 
Commission to revoke the statement of compliance at any time based upon 
a change of circumstances affecting such compliance.
    ``(3)(A) No gaming operation shall operate unless all necessary 
licenses and approvals therefor have been obtained in accordance with 
this Act.
    ``(B)(i) Prior to the operation of any gaming facility or activity, 
every agreement for the management of the gaming operation shall be in 
writing and filed with the Commission pursuant to section 11 of this 
Act.
    ``(ii) No such agreement shall be effective unless expressly 
approved by the Commission.
    ``(iii) The Commission may require that any such agreement include 
within its terms any provisions reasonably necessary to best accomplish 
the policies of this Act.
    ``(iv) The Commission may determine that any applicant who does not 
have the ability to exercise any significant control over a licensed 
gaming operation shall not be eligible to hold or required to hold a 
license.
    ``(4)(A) The Commission shall deny a license for the management of 
a gaming operation to any applicant who is disqualified on the basis of 
any of the following criteria--
            ``(i) failure of the applicant to prove by clear and 
        convincing evidence that the applicant is qualified in 
        accordance with the provisions of this Act;
            ``(ii) failure of the applicant to provide information, 
        documentation and assurances required by the Act or requested 
        by the Commission, or failure of the applicant to reveal any 
        fact material to qualification, or the supplying of information 
        which is untrue or misleading as to a material fact pertaining 
        to the qualification criteria; and
            ``(iii) the conviction of the applicant, or of any person 
        required to be qualified under this Act as a condition of a 
        license for the management of a gaming operation, of any 
        offense in any jurisdiction which is deemed by the Commission 
        to disqualify the applicant: Provided, That--
    ``(B) the automatic disqualification provisions of this subsection 
shall not apply with regard to any conviction which did not occur 
within the 10-year period immediately preceding application for 
licensure and which the applicant demonstrates by clear and convincing 
evidence does not justify automatic disqualification pursuant to this 
subsection and any conviction which has been the subject of a judicial 
order of expungement.
    ``(5)(A) Upon the filing of an application for a license for the 
management of a gaming operation and such supplemental information as 
the Commission may require, the Commission shall conduct an 
investigation into the qualifications of the applicant, and the 
Commission shall conduct a hearing thereon concerning the 
qualifications of the of the applicant in accordance with its 
regulations.
    ``(B) After such investigation and hearing, the Commission may 
either deny the application or grant a gaming operation license to an 
applicant whom it determines to be qualified to hold such license.
    ``(C)(i) The Commission shall have the authority to deny any 
application pursuant to the provisions of this Act.
    ``(ii) When an application is denied, the Commission shall prepare 
and file an order denying such application with the general reasons 
therefor, and if requested by the applicant, shall further prepare and 
file a statement of the reasons for the denial, including the specific 
findings of facts.
    ``(iii) After an application is submitted to the Commission, final 
action of the Commission shall be taken within 90 days after completion 
of all hearings and investigations and the receipt of all information 
required by the Commission.
    ``(D) If satisfied that an applicant is qualified to receive a 
license for the management of a gaming operation, and upon tender of 
all license fees and assessments as required by this Act and 
regulations of the Commission, and such bonds as the Commission may 
require for the faithful performance of all requirements imposed by 
this Act or regulations promulgated thereunder, the Commission shall 
issue a license for the management of a gaming operation for the term 
of 1 year.
    ``(E)(i) The Commission shall fix the amount of the bond or bonds 
to be required under this section in such amounts as it may deem 
appropriate, by rules of uniform application.
    ``(ii) The bonds so furnished may be applied by the Commission to 
the payment of any unpaid liability of the licensee under this Act.
    ``(iii) The bond shall be furnished in cash or negotiable 
securities, by a surety bond guaranteed by a satisfactory guarantor, or 
by an irrevocable letter of credit issued by a banking institution of 
any state acceptable to the Commission.
    ``(iv) If furnished in cash or negotiable securities, the principal 
shall be placed without restriction at the disposal of the Commission, 
but any income shall inure to the benefit of the licensee.
    ``(6)(A)(i) Subject to the power of the Commission to deny, revoke, 
or suspend licenses, any license for the management of a gaming 
operation in force shall be renewed by the Commission for the next 
succeeding license period upon proper application for renewal and 
payment of license fees and assessments as required by law and the 
regulations of the Commission.
    ``(ii) The license period for a renewed license for the management 
of a gaming operation shall be up to one year for each of the first two 
renewal periods succeeding the initial issuance of a license for the 
management of a gaming operation pursuant to subsection (5) of this 
section.
    ``(iii) Thereafter, a license for the management of a gaming 
operation may be renewed for a period of up to two years, but the 
Commission may reopen licensing hearings at any time.
    ``(B)(i) Notwithstanding the other provisions of this subsection, 
the Commission may, for the purpose of faciliating its administration 
of this Act, renew the license for the management of a gaming operation 
of the holders of licenses initially opening after the date of 
enactment of this Act for a period of one year, provided the renewal 
period for those particular licenses for the management of a gaming 
operation may not be adjusted more than once pursuant to this 
provision.
    ``(ii) The Commission shall act upon any such application prior to 
the date of expiration of the current license.
    ``(C) Application for renewal shall be filed with the Commission no 
later than 90 days prior to the expiration of the current license, and 
all license fees and assessments as required by law shall be paid to 
the Commission on or before the date of expiration of the current 
license.
    ``(D) Upon renewal of any license the Commission shall issue an 
appropriate renewal certificate or validating device or sticker which 
shall be attached to each license for the management of a gaming 
operation.
    ``(7) Subject to the power of the Commission to deny, revoke or 
suspend any license, any license other than a license for the 
management of a gaming operation may be renewed upon proper application 
for renewal and the payment of fees in accordance with the rules of the 
Commission, but in no event later than the date of expiration of the 
current license.
    ``(d) Hearings.--The Commission shall establish procedures for the 
conduct of hearings associated with--
            ``(A) licensing of gaming operations and the management of 
        a gaming operation, including the denial, limiting, 
        conditioning, restriction, revocation, or suspension of any 
        such license;
            ``(B) licensing of--
                    ``(i) key employees of gaming operations;
                    ``(ii) any person having a material involvement, 
                either directly or indirectly, with a licensed gaming 
                operation;
                    ``(iii) gaming-related contractors, including but 
                not limited to any vendor or supplier of gaming 
                equipment or gambling devices associated with a 
                licensed gaming operation;
                    ``(iv) gaming service industries pursuant to which 
                an Indian tribal government or its agent enters into an 
                agreement in excess of $10,000 for the procurement of 
                materials, supplies, equipment or services which are 
                used in association with a gaming operation, or 
                financing contracts or agreements with a gaming service 
                industry in excess of $10,000 associated with any 
                facility which is used in association with a gaming 
                operation; and
                    ``(v) any other person or company or other entity 
                for which the Commission may require licensure;
        including the denial, limiting, conditioning, restriction, 
        revocation, or suspension of any such license.
    ``(2) Following a hearing for any of the purposes authorized in 
this section, the Commission shall render its decision and issue an 
order, and serve such decision and order upon the affected parties.
    ``(3)(A) The Commission may, upon motion made within 10 days after 
the service of a decision and order, order a rehearing before the 
Commission upon such terms and conditions as it may deem just and 
proper when the Commission finds cause to believe that the decision and 
order should be reconsidered in view of the legal, policy or factual 
matters advanced by the moving party or raised by the Commission on its 
own motion.
    ``(B) Following a rehearing, the Commission shall render its 
decision and issue an order, and serve such decision and order upon the 
affected parties.
    ``(C) The Commission's decision and order under subsection (2) of 
this section when no motion for a rehearing is made, or the 
Commission's decision and order upon rehearing shall constitute final 
agency action for purposes of judicial review under the Administrative 
Procedure Act.
    ``(4) The District of Columbia Circuit Court of Appeals shall have 
jurisdiction to review the Commission's licensing decisions and orders.
    ``(e) Commission Staffing.--(1) The Chairman shall appoint a 
General Counsel to the Commission who shall be paid at the annual rate 
of basic pay payable for ES-6 of the Senior Executive Service Schedule 
under section 5382 of title 5 of the United States Code.
    ``(2) The Chairman shall appoint and supervise other staff of the 
Commission without regard to the provisions of title 5, United States 
Code, governing appointments in the competitive service. Such staff 
shall be paid without regard to the provisions of chapter 51 and 
subchapters III and VIII of chapter 53 of such title relating to 
classification and General and Senior Executive Service Schedule pay 
rates, except that no individual so appointed may receive pay in excess 
of the annual rate of basic pay payable for ES-5 of the Senior 
Executive Service Schedule under section 5382 of that title.
    ``(3) The Chairman may procure temporary and intermittent services 
under section 3109(b) of title 5, United States Code, but at rates for 
individuals not to exceed the daily equivalent of the maximum annual 
rate of basic pay payable for ES-6 of the Senior Executive Service 
Schedule.
    ``(4) Upon the request of the Chairman, the head of any federal 
agency is authorized to detail any of the personnel of such agency to 
the Commission to assist the Commission in carrying out its duties 
under this Act, unless otherwise prohibited by law.
    ``(5) The Administrator of General Services shall provide to the 
Commission on a reimbursable basis such administrative support services 
as the Commission may request.
    ``(f) Commission Access to Information.--(1) The Commission may 
secure from any department or agency of the United States information 
necessary to enable it to carry out this Act. Upon request of the 
Chairman, the head of such department or agency shall furnish such 
information to the Commission, unless otherwise prohibited by law.
    ``(2) The Commission may secure from any law enforcement agency of 
any State or Indian tribal government information necessary to enable 
it to carry out this Act. Upon request of the Chairman, the head of any 
State or tribal law enforcement agency shall furnish such information 
to the Commission, unless otherwise prohibited by law.
    ``(g) Investigations and Actions.--(1)(A) The Commission may, in 
its discretion, conduct such investigations as it deems necessary to 
determine whether any person has violated, is violating, or is about to 
violate any provision of this Act or the rules and regulations 
promulgated thereunder and may require or permit any person to file 
with it a statement in writing, under oath, or otherwise as the 
Commission shall determine, as to all the facts and circumstances 
concerning the matter to be investigated.
    ``(B) The Commission is authorized, in its discretion, to 
investigate any facts, conditions, practices, or matters which it may 
deem necessary or proper to aid in the enforcement of such provisions, 
in the prescribing of rules and regulations under this Act, or in 
securing information to serve as a basis for recommending further 
legislation concerning the matters to which this Act relates.
    ``(2)(A) For the purpose of any investigation or any other 
proceeding under this Act, any member of the Commission or any officer 
designated by the Commission is empowered to administer oaths and 
affirmations, subpoena witnesses, compel their attendance, take 
evidence, and require the production of any books, papers, 
correspondence, memoranda, or other records which the Commission deems 
relevant or material to the inquiry. Such attendance of witnesses and 
the production of any such records may be required from any place in 
the United States or any State at any designated place of hearing.
    ``(B) In case of contumacy by or refusal to obey any subpoena 
issued to any person, the Commission may invoke the jurisdiction of any 
court of the United States within the jurisdiction of which an 
investigation or proceeding is carried on, or where such person resides 
or carries on business, in requiring the attendance and testimony of 
witnesses and the production of books, papers, correspondence, 
memoranda, and other records.
    ``(C) Any such court may issue an order requiring such person to 
appear before the Commission or member of the Commission or officer 
designated by the Commission, there to produce records, if so ordered, 
or to give testimony touching the matter under investigation or in 
question; and any failure to obey such order of the court may be 
punished by such court as a contempt thereof.
    ``(3) Whenever it shall appear to the Commission that any person is 
engaged or about to engage in acts or practices constituting a 
violation of any provision of this Act or rules or regulations 
thereunder, the Commission may--
            ``(A) in its discretion, bring an action in the proper 
        district court of the United States or the United States 
        District Court for the District of Columbia, to enjoin such 
        acts or practices, and upon a proper showing, a permanent or 
        temporary injunction or restraining order shall be granted 
        without bond; or
            ``(B) transmit such evidence as may be available concerning 
        such acts or practices as may constitute a violation of any 
        criminal laws of the United States to the Attorney General, who 
        may institute the necessary criminal proceedings.
    ``(4) Upon application of the Commission, the district courts of 
the United States shall have jurisdiction to issue writs of mandamus, 
injunctions, and orders commanding any person to comply with the 
provisions of this Act and the rules and regulations thereunder.''.
    (7) Section 8 of the Act (25 U.S.C. 2707) is amended to read as 
follows:

``SEC. 8. REQUIREMENTS AND PROCEDURES FOR APPLICANTS AND LICENSEES.

    ``(a) Requirements of Applicants and Licensees.--(1)(A) It shall be 
the affirmative responsibility of each applicant for a license and each 
licensee to establish by clear and convincing evidence their individual 
qualifications, and for an applicant for a license for the management 
of a gaming operation, the qualifications of each person or entity that 
is required to be qualified under this Act.
    ``(B) For purposes of this section, the terms `applicant' and 
`licensee' shall include any person, any entity, and corporation, any 
company or any other organization for whom the Commission requires an 
approved license pursuant to section 7(c) of this Act as a condition of 
doing business in Indian country.
    ``(2)(A) Any applicant or licensee shall provide all information 
required by this Act and satisfy all requests for information 
pertaining to qualifications and in the form specified by the 
Commission.
    ``(B) All applicants and licensees shall waive the liability of the 
Commission and its members, employees and agents, for any damages 
resulting from any disclosure or publication in any manner, other than 
a willfully unlawful disclosure or publication, of any material or 
information acquired during inquiries, investigations or hearings.
    ``(3) All applicants and licensees shall consent to inspections, 
searches and seizures and the supplying of handwriting exemplars as 
authorized by this Act and regulations promulgated thereunder.
    ``(4)(A) All applicants and licensees shall have the continuing 
duty to provide any assistance or information required by the 
Commission, and to cooperate in any inquiry or investigation conducted 
by the Commission and any inquiry, investigation, or hearing conducted 
by the Commission.
    ``(B) If, upon issuance of a formal request to answer or produce 
information, evidence or testimony, any applicant or licensee refuses 
to comply, the application or license of such person may be denied or 
revoked by the Commission.
    ``(5) No applicant or licensee shall give or provide, offer to give 
or provide, directly or indirectly, any compensation or reward or any 
percentage or share of the money or property played or received through 
gaming activities, except as authorized by this Act, in consideration 
for obtaining any license, authorization, permission or privilege to 
participate in any way in the operation of gaming activities.
    ``(6) Each applicant or licensee shall be photographed and 
fingerprinted for identification and investigation purposes in 
accordance with procedures established by the Commission.
    ``(7)(A) All applicants and licensees, and all persons employed by 
a gaming service industry licensed pursuant to this Act, shall have a 
duty to inform the Commission of any action which they believe would 
constitute a violation of this Act.
    ``(B) No person who so informs the Commission shall be 
discriminated against by an applicant or licensee because of the 
supplying of such information.
    ``(8)(A) Any person who must be qualified pursuant to this Act in 
order to hold the securities of a licensee or any holding or 
intermediary company of a licensee may apply for qualification status 
prior to the acquisition of any such securities.
    ``(B) The Commission may determine to accept such an application 
upon a finding that there is a reasonable likelihood that, if 
qualified, the applicant will obtain and hold securities of a licensee 
sufficient to require qualification.
    ``(C) Such an applicant shall be subject to the provisions of this 
section and shall pay for the costs of all investigations and 
proceedings in relation to the application unless the applicant 
provides to the Commission an agreement with one or more licensees 
which states that the licensee or licensees will pay those costs.
    ``(b) License for the Management of a Gaming Operation--Applicant 
Eligibility.--
            ``(1) No corporation shall be eligible to apply for a 
        license for the management of a gaming operation unless--
                    ``(A) the corporation shall be incorporated in one 
                of the fifty states or by an Indian tribe, although 
                such corporation may be a wholly or partially owned 
                subsidiary of a corporation which is incorporated in 
                one of the fifty states or of a foreign country;
                    ``(B) the corporation shall maintain an office of 
                the corporation on the premises licensed or to be 
                licensed;
                    ``(C) the corporation shall comply with all of the 
                requirements of the laws of the state or Indian tribe 
                pertaining to corporations in which the corporation is 
                incorporated;
                    ``(D) the corporation shall maintain a ledger in 
                the principal office of the corporation which shall at 
                all times reflect the current ownership of every class 
                of security issued by the corporation and shall be 
                available for inspection by the Commission and 
                authorized agents of the Commission at all reasonable 
                times without notice;
                    ``(E) the corporation shall maintain all operating 
                accounts required by the Commission and shall notify 
                the Commission of the financial institution in which 
                such operating accounts are located;
                    ``(F) the corporation shall include among the 
                purposes stated in its certificate of incorporation the 
                conduct of gaming operations and provide that the 
                certificate of incorporation includes all provisions 
                required by this Act;
                    ``(G)(1) if the corporation is not a publicly-
                traded corporation, the corporation shall file with the 
                Commission such adopted corporate charter provisions as 
                may be necessary to establish the right of prior 
                approval by the Commission with regard to transfers of 
                securities, shares, and other interests in the 
                applicant corporation; and
                    ``(2) if the corporation is a publicly-traded 
                corporation, provide in its corporate charter that any 
                securities of such corporation are held subject to the 
                condition that if a holder thereof is found to be 
                disqualified by the Commission pursuant to the 
                provisions of this Act, such holder shall dispose of 
                his interest in the corporation, provided that nothing 
                herein shall be deemed to require that any security of 
                such corporation bear any legend to this effect;
                    (H) if the corporation is not a publicly-traded 
                corporation, the corporation shall establish to the 
                satisfaction of the Commission that appropriate charter 
                provisions create the absolute right of such non-
                publicly-traded corporations and companies to 
                repurchase at the market price or the purchase price, 
                whichever is the lesser, any security, share or other 
                interest in the corporation in the event that the 
                Commission disapproves a transfer in accordance with 
                the provisions of this Act;
                    ``(I) any publicly-traded holding, intermediary, or 
                subsidiary company of the corporation, whether the 
                corporation is publicly traded or not, shall contain in 
                its corporate charter the same provisions required 
                under paragraph (H) for a publicly-traded corporation 
                to be eligible to apply for a license for the 
                management of a gaming operation;
                    ``(J) any non-publicly-traded holding, intermediary 
                or subsidiary company of the corporation, whether the 
                corporation is publicly-traded or not, shall establish 
                to the satisfaction of the Commission that its charter 
                provisions are the same as those required under 
                paragraphs (H) and (I) for a non-publicly-traded 
                corporation to be eligible to apply for a license for 
                the management of a gaming operation; and
                    ``(K) the provisions of this subsection shall apply 
                with the same force and effect with regard to 
                applicants for a license and licensees for the 
                management of a gaming operation which have a legal 
                existence that is other than corporate to the extent 
                which is appropriate.
    ``(c) License for the Management of a Gaming Operation--Applicant 
Requirements.--
            ``(1) Any applicant for a license for the management of a 
        gaming operation must produce information, documentation and 
        assurances concerning the following qualification criteria:
                    ``(A) Each applicant shall produce such 
                information, documentation and assurances concerning 
                financial background and resources as may be required 
                to establish by clear and convincing evidence the 
                financial stability, integrity and responsibility of 
                the applicant, including but not limited to bank 
                references, business and personal income and 
                disbursement schedules, tax returns and other reports 
                filed with governmental agencies, and business and 
                personal accounting and check records and ledgers.
                    ``(B) Each applicant shall, in writing, authorize 
                the examination of all bank accounts and records as may 
                be deemed necessary by the Commission.
                    ``(C)(i) Each applicant shall produce such 
                information, documentation and assurances as may be 
                necessary to establish by clear and convincing evidence 
                the integrity of all financial backers, investors, 
                mortgagees, bond holders, and holders of indentures, 
                notes or other evidences of indebtedness, either in 
                effect or proposed, which bears any relation to the 
                proposal for the management of a gaming operation 
                submitted by the applicant or applicants, provided that 
                this section shall not apply to banking or other 
                licensed lending institutions and institutional 
                investors.
                    ``(ii) Any such banking or licensed lending 
                institution or institutional investor shall, however, 
                produce for the Commission upon request any document or 
                information which bears any relation to the proposal 
                for the management of a gaming operation submitted by 
                the applicant or applicants.
                    ``(iii) The integrity of financial sources shall be 
                judged upon the same standards as the applicant.
                    ``(iv) In addition, each applicant shall produce 
                whatever information, documentation or assurances as 
                may be required to establish by clear and convincing 
                evidence the adequacy of financial resources as to the 
                completion of the proposal for the management of the 
                gaming operation.
                    ``(D)(i) Each applicant shall produce such 
                information, documentation and assurances as may be 
                required to establish by clear and convincing evidence 
                the applicant's good character, honesty and integrity.
                    ``(ii) Such information shall include, without 
                limitation, information pertaining to family, habits, 
                character, reputation, criminal and arrest record, 
                business activities, financial affairs, and business, 
                professional and personal associates, covering at least 
                the 10-year period immediately preceding the filing of 
                the application;
                    ``(iii) Each applicant shall notify the Commission 
                of any civil judgments obtained against any such 
                applicant pertaining to antitrust or security 
                regulation laws of the United States, or of any state, 
                jurisdiction, province or country.
                    ``(iv) In addition, each applicant shall produce 
                letters of reference from law enforcement agencies 
                having jurisdiction in the applicant's place of 
                residence and principal place of business, which 
                letters of reference shall indicate that such law 
                enforcement agencies do not have any pertinent 
                information concerning the applicant, or if such law 
                enforcement agency does have information pertaining to 
                the applicant, shall specify what the information is.
                    ``(v) If the applicant has managed gaming 
                operations in a jurisdiction which permits such 
                activity, the applicant shall produce letters of 
                reference from the gaming or casino enforcement or 
                control agency which shall specify the experiences of 
                such agency with the applicant, his associates, and the 
                gaming operation, provided that if no such letters are 
                received within 60 days of request therefor, the 
                applicant may submit a statement under oath that he is 
                or was during the period such activities were conduct 
                in good standing with such gaming or casino enforcement 
                of control agency.
                    ``(E)(i) Each applicant shall produce such 
                information, documentation and assurances as may be 
                required to establish by clear and convincing evidence 
                that the applicant has sufficient business ability and 
                gaming management experience as to establish the 
                likelihood of creation and maintenance of a successful, 
                efficient gaming operation;
                    ``(ii) The applicant shall produce the names of all 
                proposed key employees of the proposed gaming operation 
                as they become known and a description of their 
                respective or proposed responsibilities, and a full 
                description of security systems and management controls 
                proposed for the gaming operation and related 
                facilities.
                    ``(F) Each applicant shall produce such 
                information, documentation and assurances to enable the 
                Commission to comply with the National Environmental 
                Policy Act, the National Historic Preservation Act, and 
                the Endangered Species Act.
    ``(d) Additional Requirements.--
            ``(1) In addition to other information required by this 
        Act, a corporation applying for a license for the management of 
        a gaming operation shall provide the following information--
                    ``(A) the organization, financial structure and 
                nature of all businesses operated by the corporation;
                    ``(B) the names and personal employment and 
                criminal histories of all officers, directors and 
                principal employees of the corporation;
                    ``(C) the names of all holding, intermediary and 
                subsidiary companies of the corporation;
                    ``(D) the organization, financial structure and 
                nature of all businesses operated by such of its 
                holding, intermediary such subsidiary companies as the 
                Commission may require, including names and personal 
                employment and criminal histories of such officers, 
                directors and principal employee of such corporations 
                and companies as the Commission may require;
                    ``(E) the rights and privileges acquired by the 
                holders of different classes of authorized securities 
                of such corporations and companies as the Commission 
                may require, including the names, addresses and amounts 
                held by all holders of such securities;
                    ``(F) the terms upon which securities have been or 
                are to be offered;
                    ``(G) the terms and conditions of all outstanding 
                loans, mortgages, trust deeds, pledges or any other 
                indebtedness of security devices utilized by the 
                corporation;
                    ``(H) the extent of the equity security holding in 
                the corporation of all officers, directors and 
                underwriters and their remuneration in the form of 
                salary, wages, fees or otherwise;
                    ``(I) names of persons other than directors and 
                officers who occupy positions specified by the 
                Commission or whose compensation exceeds an amount 
                determined by the Commission, and the amount of their 
                compensation;
                    ``(J) a description of all bonus and profit-sharing 
                arrangements;
                    ``(K) copies of all management and service 
                contacts; and
                    ``(L) a listing of stock options existing or to be 
                credited.
            ``(2) If a corporation applying for a license for the 
        management of a gaming operation is, or if a corporation 
        holding a license for the management of a gaming operation is 
        to become, a subsidiary, each holding company and each 
        intermediary company with respect thereto must, as a condition 
        of the said subsidiary acquiring or retaining such license, as 
        the case may be--
                    ``(A) qualify to do business in one of the fifty 
                states or with a Federally-recognized Indian tribe; and
                    ``(B) if it is a corporation, register with the 
                Commission and furnish the Commission with all the 
                information required of a corporate licensee as 
                specified in subsections (A) through (F) of this 
                section an such other information as the Commission may 
                require; or
                    ``(C) if it is not a corporation, register with the 
                Commission and furnish the Commission with such 
                information as the Commission may prescribe.
            ``(3) No corporation shall be eligible to hold a license 
        for the management of a gaming operation unless each officer; 
        each director; each person who directly or indirectly holds any 
        beneficial interest or ownership of the securities issued by 
        the corporation; any person who in the opinion of the 
        Commission has the ability to control the corporation or elect 
        a majority of the board of directors of that corporation, other 
        than a banking or other licensed lending institution which 
        makes a loan or holds a mortgage of other lien acquired in the 
        ordinary course of business; each principal employee; and any 
        lender, underwriter, agent, employee of the corporation, or 
        other person whom the Commission may consider appropriate for 
        approval or qualification would, but for residence, 
        individually be qualified for approval as a gaming operation 
        key employee pursuant to the provisions of this Act.
            ``(4) No corporation which is a subsidiary shall be 
        eligible to receive or hold a licensing for the management of a 
        gaming operation unless each holding and intermediary company 
        with respect thereto--
                    ``(A) if it is a corporation, shall comply with the 
                provisions of this section as if said holding or 
                intermediary company were itself applying for a license 
                for the management of a gaming operation, provided that 
                the Commission may waive compliance with the provisions 
                of this section on the part of a publicly-traded 
                corporation which is a holding company as to any 
                officer, director, lender, underwriter, agent or 
                employee thereof, or person directly or indirectly 
                holding a beneficial interest or ownership of the 
                securities of such corporation, where the Commission is 
                satisfied that such officer, director, lender, 
                underwriter, agent or employee in not significantly 
                involved in the activities of the corporate licensee, 
                and in the case of security holders, does not have the 
                ability to control the publicly-traded corporation or 
                elect one or more directors thereof; or
                    ``(B) if it is not a corporation, shall comply with 
                the provisions of this section as if said company were 
                itself applying for a license for the management of a 
                gaming operation.
            ``(5)(A) Any noncorporate applicant for a license for the 
        management of a gaming operation shall provide the information 
        required of this section in such form as may be required by the 
        Commission.
            ``(B) No such applicant shall be eligible to hold a license 
        for the management of a gaming operation unless each person who 
        directly or indirectly holds any beneficial interest or 
        ownership in the applicant, or who in the opinion of the 
        Commission has the ability to control the applicant, or whom 
        the Commission may consider appropriate for approval or 
        qualification, would individually be qualified for approval as 
        a key employee pursuant to the provisions of this Act.
            ``(6) Notwithstanding the provisions of this section, and 
        in the absence of a prima facie showing that there is any cause 
        to believe that the institutional investor may be found 
        unqualified, an institutional investor holding either--
                    ``(A) under 10 percent of the equity securities of 
                a holding or intermediary companies of a licensee for 
                the management of a gaming operation, or
                    ``(B) debt securities of a holding or intermediary 
                companies, or another subsidiary company of a holding 
                or intermediary companies which is related in any way 
                to the financing of the licensee for the management of 
                a gaming operation, where the securities represent a 
                percentage of the outstanding debt of the company not 
                exceeding 20 percent or a percentage of any issue of 
                the outstanding debt of the company not exceeding 50 
                percent shall be granted a waiver of qualification if 
                such securities are those of a publicly traded 
                corporation and its holdings of such securities were 
                purchased for investment purposes only and upon request 
                by the Commission, it files with the Commission a 
                certified statement to the effect that it has no 
                intention of influencing or affecting the affairs of 
                the issuer, the licensee for the management of a gaming 
                operation or its holding or intermediary companies, 
                provided that it shall be permitted to vote on matters 
                put to the vote of the outstanding security holders;
                    ``(C) the Commission may grant a waiver of 
                qualification to an institutional investor holding a 
                higher percentage of such securities upon a showing of 
                good cause and if the conditions specified in this 
                subsection are met;
                    ``(D) any institutional investor granted a waiver 
                under this subsection which subsequently determines to 
                influence or affect the affairs of the issuer shall 
                provide not less than 30 days notice of such intent and 
                shall file with the Commission an application for 
                qualification before taking any action that may 
                influence or affect the affairs of the issuer, provided 
                that it shall be permitted to vote on matters put to 
                the vote of the outstanding security holders;
                    ``(E) if an institutional investor changes its 
                investment intent, or if the Commission finds 
                reasonable cause to believe that the institutional 
                investor may be found unqualified, no action other than 
                divestiture shall be taken by such investor with 
                respect to its security holdings until there has been 
                compliance with the provisions of this Act including 
                the execution of a trust agreement; or
                    ``(F) the licensee for the management of a gaming 
                operation and its relevant holding, intermediary or 
                subsidiary company shall immediately notify the 
                Commission of any information about, or actions of, an 
                institutional investor holding its equity or debt 
                securities where such information or action may have an 
                impact upon the eligibility of such institutional 
                investor for a waiver pursuant to this subsection.
            ``(7) If at any time the Commission finds that an 
        institutional investor holding any security of a holding or 
        intermediary company of a licensee for the management of a 
        gaming operation, or, where relevant, of another subsidiary 
        company of a holding or intermediary company of a licensee for 
        the management of a gaming operation which is related in any 
        way to the financing of the licensee for the management of a 
        gaming operation, fails to comply with the terms of this 
        section, or if at any time the Commission finds that, by reason 
        of the extent or nature of its holdings, an institutional 
        investor is in a position to exercise such a substantial impact 
        upon the controlling interests of a licensee that qualification 
        of the institutional investor is necessary to protect the 
        public interest, the Commission may, in accordance with the 
        provisions of this section of this Act, take any necessary 
        action to protect the public interest, including requiring such 
        an institutional investor to be qualified pursuant to the 
        provisions of this Act.
    ``(e) Licensing of Key Employees of Gaming Operations.--
            ``(1) No person may be employed as a key employee of a 
        class III gaming operation unless he is the holder of a valid 
        gaming operation key employee license issued by the Commission.
            ``(2) Each applicant must, prior to the issuance of any 
        gaming operation key employee license, produce information, 
        documentation and assurances concerning the following 
        qualification criteria--
                    ``(A) each applicant for a gaming operation key 
                employee license shall produce such information, 
                documentation and assurances as may be required to 
                establish by clear and convincing evidence the 
                financial stability, integrity and responsibility of 
                the applicant, including but not limited to bank 
                references, business and personal income and 
                disbursements schedules, tax returns and other reports 
                filed with governmental agencies, and business and 
                personal accounting and check records and ledgers;
                    ``(B) in addition, each applicant shall, in 
                writing, authorize the examination of all bank accounts 
                and records as may be deemed necessary by the 
                Commission;
                    ``(C) each applicant for a gaming operation key 
                employee license shall produce such information, 
                documentation and assurances as may be required to 
                establish by clear and convincing evidence the 
                applicant's good character, honesty and integrity;
                    ``(D) such information shall include, without 
                limitation, data pertaining to family, habits, 
                character, reputation, criminal and arrest record, 
                business activities, financial affairs, and business, 
                professional and personal associates covering at least 
                the 10-year period immediately preceding the filing of 
                the application;
                    ``(E) each applicant shall notify the Commission of 
                any civil judgments obtained against such applicant 
                pertaining to antitrust or security regulation laws of 
                the Untied States or of any state or of any 
                jurisdiction, province or country;
                    ``(F) in addition, each applicant shall, upon 
                request of the Commission, produce letters of reference 
                from law enforcement agencies having jurisdiction in 
                the applicant's place of residence and principal place 
                of business, which letters of reference shall indicate 
                that such law enforcement agencies do not have any 
                pertinent information concerning the applicant, or if 
                such law enforcement agency does have information 
                pertaining to the applicant, shall specify what that 
                information is;
                    ``(G) if the applicant has been associated with 
                gaming operations in any capacity, position or 
                employment in a jurisdiction which permits such 
                activity, the applicant shall, upon request of the 
                Commission, produce letters of reference from the 
                gaming or casino enforcement or control agency, which 
                shall specify the experience of such agency with the 
                applicant, his associates and his participation in the 
                gaming operations of that jurisdiction, provided that 
                if no such letters are received from the appropriate 
                laws enforcement agencies within 60 days of the 
                applicant's request therefor, the applicant may submit 
                a statement under oath that he is or was during the 
                period such activities were conducted in good standing 
                with such gaming or casino enforcement or control 
                agency; and
                    ``(H) each applicant shall produce such 
                information, documentation and assurances as may be 
                required to establish by clear and convincing evidence 
                that the applicant has sufficient business ability and 
                gaming operation experience as to establish the 
                reasonable likelihood of success and efficiency in the 
                particular position involved.
            ``(3) The Commission shall endorse upon any license issued 
        hereunder the particular positions as defined by this Act or by 
        regulation which the licensee is qualified to hold.
            ``(4) The Commission shall deny a gaming operation key 
        employee license to any applicant who is disqualified on the 
        basis of the criteria contained in section 7(c)(4) of this Act.
            ``(5) For the purposes of this section, gaming operation 
        security employees shall be considered key employees of a 
        gaming operation.
            ``(6) Key employees of a gaming operation directly related 
        to gaming operation shall include, but not be limited to, 
        boxmen, floormen, dealers or croupiers, cage personnel, count 
        room personnel, slot and slot booth personnel, credit and 
        collection personnel, gaming operation surveillance personnel, 
        and gaming operation security employees whose employment duties 
        require or authorize access to the gaming operation facility.
    ``(f) Licensing and Registration of Gaming-Related Contractors and 
Service Industries.--
            ``(1)(A) All gaming-related contractors and gaming service 
        industries offering goods or services which directly relate to 
        a gaming operation, including gaming equipment manufacturers, 
        suppliers and repairers, schools teaching gaming and either 
        playing or dealing techniques, and gaming operation security 
        services, shall be licensed in accordance with the provisions 
        of this Act prior to conducting any business whatsoever with a 
        gaming operation applicant or licensee, its employees or 
        agents, and in the case of a school, prior to enrollment of any 
        students or offering of any courses to the public whether for 
        compensation or not, provided that upon a showing of good cause 
        by gaming operation applicant or licensee for each business 
        transaction, the Commission may permit an applicant for a 
        gaming-related contractor or gaming service industry license to 
        conduct business transactions with such gaming operation 
        applicant or licensee prior to the licensure of that gaming-
        related contractor or gaming service industry applicant under 
        this subsection.
            ``(B)(i) In addition to the requirements of paragraph (A) 
        of this subsection, any gaming-related contractor or gaming 
        service industry intending to manufacture, sell, distribute or 
        repair gambling devices, other than antique slot machines, 
        shall be licensed in accordance with the provisions of this Act 
        prior to engaging in any such activities: Provided, That--
            ``(ii) upon a showing of good cause by a gaming operation 
        applicant or licensee for each business transaction, the 
        Commission may permit an applicant for a gaming-related 
        contractor or gaming service industry license to conduct 
        business transactions with the gaming operation applicant or 
        licensee prior to the licensure of that contractor or service 
        industry applicant under this subsection: Proivided further, 
        That--
            (iii) upon a showing of good cause by an applicant required 
        to be licensed as gaming-related contractor or gaming service 
        industry pursuant to this paragraph, the Commission may permit 
        the contractor or service industry applicant to initiate the 
        manufacture of gambling devices or engage in the sale, 
        distribution or repair of gambling devices with any person 
        other than a gaming operation applicant or licensee, its 
        employees or agents, prior to the licensure of that contractor 
        or service industry applicant under this subsection.
            ``(2)(A) Each gaming-related contractor or gaming service 
        industry in subsection (1) of this section, as well as its 
        owners, management and supervisory personnel and other 
        principal employees must qualify under the standards 
        established for qualification of a gaming operation key 
        employee under this Act;
            ``(B) In addition, if the business or enterprise is a 
        school teaching gaming and either playing or dealing 
        techniques, each director, instructor, principal employee, and 
        sales representative employed thereby shall be licensed under 
        the standards established for qualification of a key gaming 
        operation employee under this Act, provided that nothing in 
        this subsection shall be deemed to require, in the case of a 
        public school district or a public institution of higher 
        education, the licensure or qualification of any individuals 
        except those instructors and other principal employees 
        responsible for the teaching of playing or dealing techniques;
            ``(C) The Commission, in its discretion, may issue a 
        temporary license to an applicant for an instructor's license 
        upon a finding that the applicant meets the educational and 
        experiential requirements for such license, that the issuance 
        of a permanent license will be restricted by necessary 
        investigations, and that temporary licensing is necessary for 
        the operation of a gaming school.
            ``(3)(A) All gaming-related contractors and gaming service 
        industries not included in subsection (1) of this section shall 
        be licensed in accordance with rules of the Commission prior to 
        commencement or continuation of any business with a gaming 
        operation applicant or licensee or its employees or agents.
            ``(B) Such gaming-related contractors and gaming service 
        industries, whether or not directly related to gaming 
        operations, shall include any person, entity or enterprise 
        contracting with gaming operation applicants or licensees or 
        their employees or agents.
            ``(C) The Commission may exempt any person or field of 
        commerce from the licensing requirements of this subsection if 
        the person or field of commerce demonstrates--
                    ``(i) that it is regulated by a public agency or 
                that it will provide goods or services in insubstantial 
                or insignificant amounts or quantities, and
                    ``(ii) that licensing is not deemed necessary in 
                order to protect the public interest or to accomplish 
                the policies established by this Act.
            ``(D) Upon granting an exemption or at any time thereafter, 
        the Commission may limit or place such restrictions thereupon 
        as it may deem necessary in the public interest, and shall 
        require the exempted person to cooperate with the Commission 
        and, upon request, to provide information in the same manner as 
        required of a gaming-related contractor or gaming service 
        industry licensed pursuant to this subsection, provided that no 
        exemption be granted unless the gaming-related contractor or 
        gaming service industry complies with the requirements of this 
        section of this Act.''.
    (8) Section 9 of the Act (25 U.S.C. 2708) is amended to read as 
follows:

``SEC. 9. REQUIREMENTS FOR THE CONDUCT OF CLASS I AND CLASS II GAMING 
              ON INDIAN LANDS.

    ``(a) Class I Gaming.--Class I gaming on Indian lands is within the 
exclusive jurisdiction of the Indian tribes and shall not be subject to 
the provisions of this Act;
    ``(b) Class II Gaming.--(1) Any Class II gaming on Indian lands 
shall continue to be within the jurisdiction of the Indian tribes, but 
shall be subject to the provisions of this Act.
    ``(2) An Indian tribe may engage in, or license and regulate class 
II gaming on Indian lands within such tribe's jurisdiction, if--
            ``(A) such Indian gaming is located within a State that 
        permits such gaming for any purpose by any person, organization 
        or entity;
            ``(B) such gaming is not otherwise specifically prohibited 
        on Indian lands by Federal law; and
            ``(C) the Class II gaming operation meets the requirements 
        of sections 7 and 9 of this Act.
    ``(3) The Commission shall insure that any class II gaming 
operation on Indian lands meets the following requirements--
            ``(A) a separate license is issued by the Indian tribe for 
        each place, facility, or location on Indian lands at which 
        Class II gaming is conducted;
            ``(B) the Indian tribe has or will have the sole 
        proprietary interest and responsibility for the conduct of any 
        Class II gaming activity, unless the conditions of subsection 
        (3)(I) of this section apply;
            ``(C) net revenues from any Class II gaming activity are 
        not to be used for purposes other than--
                    ``(i) to fund tribal government operations or 
                programs;
                    ``(ii) to provide for the general welfare of the 
                Indian tribe and its members;
                    ``(iii) to promote tribal economic development;
                    ``(iv) to donate to charitable organizations; or
                    ``(v) to help fund operations of local government 
                agencies;
            ``(D) annual outside audits of the gaming, which may be 
        encompassed within existing independent tribal audit systems, 
        are provided by the Indian tribal government to the Commission;
            ``(E) all contracts for supplies, services, or concessions 
        for a contract amount in excess of $10,000 annually, except 
        contracts for professional legal or accounting services, 
        relating to such gaming shall be subject to such independent 
        audits and audit by the Commission;
            ``(F) the construction and maintenance of a Class II gaming 
        facility, and the operation of Class II gaming is conducted in 
        a manner which adequately protects the environment and the 
        public health and safety; and
            ``(G) there is an adequate system which--
                    ``(i) ensures that background investigations are 
                conducted on primary management officials, key 
                employees and persons having a material involvement, 
                either directly or indirectly, in a licensed Class II 
                gaming operation, and gaming-related contractors 
                associated with a licensed Class II gaming operation 
                and that oversight of such officials and their 
                management is conducted on an ongoing basis; and
                    ``(ii) includes--
                            ``(I) tribal licenses for persons involved 
                        in Class II gaming operations, including but 
                        not limited to key employees, gaming related 
                        contractors, gaming service industries, and any 
                        persons having a material involvement, either 
                        directly or indirectly, with a licensed gaming 
                        operation in accordance with section 8 of this 
                        Act;
                            ``(II) a standard whereby any person whose 
                        prior activities, criminal record, if any, or 
                        reputation, habits, and associations pose a 
                        threat to the public interest or to the 
                        effective regulation of gaming, or create or 
                        enhance the dangers of unsuitable, unfair, or 
                        illegal practices and methods and activities in 
                        the conduct of gaming shall not be eligible for 
                        employment; and
                            ``(III) notification by the Indian tribal 
                        government to the Commission of the results of 
                        such background investigation before the 
                        issuance of any of such licenses;
            ``(H) net revenues from any Class II gaming activities 
        conducted or licensed by any Indian tribal government may be 
        used to make per capita payments to members of the Indian tribe 
        only if--
                    ``(i) the Indian tribe has prepared a plan to 
                allocate revenues to uses authorized by paragraph 
                (3)(C) of this section;
                    ``(ii) the plan is approved by the Secretary as 
                adequate, particularly with respect to uses described 
                in clause (i) or (iii) of paragraph (3)(C) of this 
                section;
                    ``(iii) the interests of minors and other legally 
                incompetent persons who are entitled to receive any of 
                the per capita payments are protected and preserved and 
                the per capita payments are disbursed to the parents or 
                legal guardian of such minors or legal incompetents in 
                such amounts as may be necessary for the health, 
                education, or welfare of the minor or other legally 
                incompetent person under a plan approved by the 
                Secretary and the governing body of the Indian tribe; 
                and
                    ``(iv) the per capita payments are subject to 
                federal taxation and tribes notify members of such tax 
                liability when payments are made;
            ``(I)(i) a separate license is issued for any Class II 
        gaming operation owned by any person or entity other than the 
        Indian tribal government and conducted on Indian lands, and 
        such license includes the requirements set forth in the 
        subclauses of subparagraph (C)(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;
            ``(ii) no person or entity, other than the Indian tribal 
        government, shall be eligible to receive a tribal license to 
        own a Class II gaming operation 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;
            ``(iii) the provisions of subparagraph (i) of this 
        paragraph and the provisions of subparagraphs (B) and (C) of 
        subsection (3) shall not bar the continued operation of an 
        individually-owned Class II gaming operation that was operating 
        on September 1, 1986, if--
                    ``(I) such gaming operation is licensed and 
                regulated by an Indian tribal government;
                    ``(II) income to the Indian tribal government from 
                such gaming is used only for the purposes described in 
                paragraph (c)(3) of this subsection,
                    ``(III) not less than 60 percent of the net 
                revenues is income to the licensing tribal government, 
                and
                    ``(IV) the owner of such gaming operation pays an 
                appropriate assessment to the Commission under section 
                15 for regulation of such gaming;
            ``(iv) the exemption from application of this subsection 
        provided under this subparagraph may not be transferred to any 
        person or entity and shall remain in effect only so long as the 
        gaming operation remains within the same nature and scope as 
        operated on October 17, 1988; and
            ``(v) the Commission shall maintain a list of each 
        individually-owned gaming operation to which clause (iii) 
        applies and shall publish such list in the Federal Register.
    ``(c) License Revocation.--If, after the issuance of a license by 
an Indian tribal government, reliable information is received from the 
Commission indicating that any licensee does not meet the standards 
established under section 8 and the regulations promulgated by the 
Commission, the Indian tribal government shall suspend such license 
and, after notice and hearing, may revoke such license.''.
    ``(9) Section 10 of the Act (25 U.S.C. 2709) is amended to read as 
follows:

``SEC. 10. CLASS III GAMING ON INDIAN LANDS.

    ``(a) Requirements for the Conduct of Class III Gaming on Indian 
Lands.--
            ``(1) Class III gaming activities shall be lawful on Indian 
        lands only if such activities are--
                    ``(A) authorized by a compact that--
                            ``(i) is adopted by the governing body of 
                        the Indian tribe having jurisdiction over such 
                        lands,
                            ``(ii) meets the requirements of subsection 
                        (b) of this section, and
                            ``(iii) is approved by the Secretary;
                    ``(B) located in a State where the requirements of 
                this section of the Act are satisfied, and the gaming 
                activity is determined to be eligible for inclusion in 
                a compact in accordance with the provisions of this 
                section of the Act;
                    ``(C) conducted in conformance with a compact 
                entered into by the Indian tribe under paragraph (3) 
                that is in effect; and
                    ``(D) the Class III gaming operation meets the 
                requirements of Sections 7, 8, 10 and 11 of this Act.
            ``(2)(A) The governing body of an Indian tribe, in its sole 
        discretion, may adopt an ordinance or resolution revoking any 
        prior ordinance or resolution that authorized Class III gaming 
        on the Indian lands of the Indian tribe. Such revocation shall 
        render Class III gaming illegal on the Indian lands of such 
        Indian tribe.
            ``(B) The Indian tribe shall submit any revocation 
        ordinance or resolution described in subparagraph (A) to the 
        Chairman. The Chairman shall publish such ordinance or 
        resolution in the Federal Register and the revocation provided 
        by such ordinance or resolution shall take effect on the date 
        of such publication.
            ``(C) Notwithstanding any other provision of this 
        subsection--
                    ``(i) any person or entity operating a Class III 
                gaming activity pursuant to this paragraph on the date 
                on which an ordinance or resolution described in 
                subparagraph (A) that revokes authorization for such 
                Class III gaming activity is published in the Federal 
                Register may, during the 1-year period beginning on the 
                date on which such revocation ordinance or resolution 
                is published under subparagraph (B), continue to 
                operate such activity in conformance with the compact 
                entered into under paragraph (3) that is in effect; and
                    ``(ii) any civil action that arises before, and any 
                crime that is committed before, the close of such 1-
                year period shall not be affected by such revocation 
                ordinance or resolution.
            ``(3)(A)(i) Any Indian tribe having jurisdiction over the 
        lands upon which a Class III gaming activity is to be conducted 
        may request the Secretary to enter into negotiations for a 
        compact.
            ``(ii) Such request shall be in writing and shall specify 
        the gaming activity or activities to be included in the compact 
        and within 30 days the Secretary shall determine if any such 
        requested activities should not be included in the compact 
        under the laws of the State in which the Indian tribe is 
        located in conformity with the standards set forth in 
        subparagraphs (C) and (D) of this subsection and shall so 
        notify the Indian tribe.
            ``(iii) Such negotiations shall be completed within 120 
        days after the expiration of the 60-day period in subparagraph 
        (B)(iii) of this subsection.
            ``(iv) Any compact negotiated under this paragraph shall be 
        effective upon its publication in the Federal Register by the 
        Secretary.
            ``(v) The Commission, pursuant to section 7, shall monitor, 
        regulate and license Class III gaming with respect to any 
        compact negotiated under this paragraph and published by the 
        Secretary in the Federal Register.
            ``(vi) Any compact negotiated under this paragraph shall be 
        for a fixed term of years, consistent with the purposes of this 
        Act.
            ``(vii) A tribal request for a change in a compact shall be 
        considered a request for purposes of this subsection.
            ``(B)(i) When an Indian tribe makes a request pursuant to 
        subparagraph (A), it shall also notify the State within which 
        the gaming activity is to be conducted.
            ``(ii) Such notice to the State shall include the specific 
        gaming activities which the Indian tribe is requesting that the 
        Secretary include in the compact.
            ``(iii) Within 60 days from such notification, the State 
        may request the Indian tribe to enter into negotiations for a 
        compact. The State and Indian tribe by mutual agreement may 
        extend the 60-day period.
            ``(iv) When a State requests an Indian tribe to negotiate a 
        compact within the designated time period, that request shall 
        toll the operation of subparagraph (A), and shall be deemed to 
        constitute a voluntary waiver of the sovereign immunity of the 
        State for the purposes of this Act.
            ``(C) Any compact negotiated under subparagraph (A) may 
        include provisions relating to--
                    ``(i) the application of the criminal and civil 
                laws and regulations of the Indian tribe or the State 
                that are directly related to, and necessary for, the 
                licensing and regulation of such activity;
                    ``(ii) the allocation of criminal and civil 
                jurisdiction between the State and the Indian tribe 
                necessary for the enforcement of such laws and 
                regulations;
                    ``(iii) the assessment by the State of such 
                activities in such amounts as are necessary to defray 
                the costs of regulating such activity;
                    ``(iv) taxation by the Indian tribe of such 
                activity in amounts comparable to amounts assessed by 
                the State for comparable activities;
                    ``(v) remedies for breach of contract;
                    ``(vi) standards for the operation of such activity 
                and maintenance of the gaming facility, including 
                licensing; and
                    ``(vii) any other subjects that are reasonably 
                related to the operation of gaming activities, and the 
                impact on tribal, State, and local governments.
            ``(4) Except for any assessments for services agreed to by 
        an Indian tribe in compact negotiations, nothing in this 
        section shall be construed as conferring upon a State or any of 
        its political subdivisions the authority to impose any tax, 
        fee, charge or other assessment upon an Indian tribe, an Indian 
        gaming operation or the value generated therein, or any person 
        or entity authorized by an Indian tribe to engage in a Class 
        III gaming activity in conformity with the provisions of this 
        Act.
            ``(5) Nothing in this subsection shall impair the right of 
        an Indian tribe to regulate Class III gaming on its Indian 
        lands concurrently with the State and the Commission, except to 
        the extent that such regulation is inconsistent with, or less 
        stringent than, this Act or the laws and regulations made 
        applicable by any compact entered into by the Indian tribe 
        under paragraph (3) that is in effect.
            ``(6) The provisions of section 5 of the Act of January 2, 
        1951 (15 U.S.C. 1175) shall not apply to any gaming activity 
        conducted pursuant to a compact entered into after the 
        effective date of the Indian Gaming Regulatory Act Amendments 
        Act, but in no event shall this paragraph, as amended by such 
        Act, be construed as invalidating any exemption from section 5 
        under this Act prior to its enactment by the Indian Gaming 
        Regulatory Act Amendments Act of 1994, or under any compact, or 
        procedure in lieu of a compact, in effect on the date of 
        enactment of the Indian Gaming Regulatory Act Amendments Act.
            ``(7)(A) The United States district courts shall have 
        jurisdiction over--
                    ``(i) any cause of action for a declaratory 
                judgment brought by an Indian tribe or a State pursuant 
                to subparagraph (C), or the review of any decision by 
                the Secretary with regard to the gaming activities 
                which are subject to inclusion in a compact or to 
                resolve any dispute pursuant to subparagraph (E) or 
                (F);
                    ``(ii) any cause of action initiated by a State or 
                Indian tribe to enjoin a Class III gaming activity 
                located on Indian lands and conducted in violation of 
                any compact entered into under paragraph (3) that is in 
                effect; or
                    ``(iii) any cause of action initiated by the 
                Secretary to enforce any provision of a compact.
            ``(B)(i) Where a State elects to negotiate a compact, 
        within 30 days after notice of the election, the State shall 
        notify the tribe if it determines that any gaming activity 
        requested is prohibited as a matter of State criminal law and 
        is not otherwise subject to negotiation under this Act.
            ``(ii) Following the State's notification to the tribe of 
        its determination, the parties shall have 30 days in which to 
        meet and confer to resolve any dispute regarding the State's 
        determination.
            ``(iii) Notwithstanding any declaratory judgment action 
        pending under subparagraph (C), a tribe and State may negotiate 
        and establish procedures for mediating any issue not subject to 
        the declaratory judgment action.
            ``(C) No later than 120 days after the State has notified 
        the tribe of its election to negotiate a compact, or such 
        longer period as may be agreed to in writing by the parties, 
        either party may initiate an action in an appropriate United 
        States district court for a declaration whether the disputed 
        gaming activity is subject to compact negotiation under this 
        Act. In any such declaratory action, the court shall declare 
        that the disputed gaming activity as a matter of Federal law 
        shall be the subject of negotiation if it finds that--
                    ``(i) the disputed gaming activity is not 
                prohibited as a matter of State criminal law, or
                    ``(ii) even if the disputed activity is prohibited 
                as a matter of State criminal law, the gaming activity 
                meets one or more of the following criteria:
                            ``(I) Its principal characteristics are not 
                        distinguishable from a gaming activity that is 
                        not prohibited by State criminal law and there 
                        is no rational basis for differentiating 
                        between the disputed gaming activity and the 
                        activity not prohibited by the State.
                            ``(II) State law permits the disputed 
                        gaming activity subject to regulation.
                            ``(III) As a matter of State law any 
                        person, organization, or entity within the 
                        State may engage in the disputed gaming 
                        activity for any purpose, except that the 
                        permitting of a social gaming activity does not 
                        make that activity subject to negotiations 
                        pursuant to this section after the date of the 
                        enactment of the Indian Gaming Regulatory Act 
                        Amendments Act; provided that this exception 
                        shall have no effect on the continued validity 
                        of any compacts or procedures in lieu thereof 
                        which are in effect on the date of enactment of 
                        the Indian Gaming Regulatory Act Amendments 
                        Act.
            ``(D) In any determination of whether a gaming activity is 
        subject to compact negotiation under this Act, the following 
        categories of gaming activities are distinguishable from each 
        other:
                    ``(i) Gambling device.
                    ``(ii) Lottery game.
                    ``(iii) Banking game.
                    ``(iv) Parimutuel wagering.
                    ``(v) Other games of chance.
            ``(E) Where the State elects to negotiate a compact under 
        this Act, the negotiation shall be completed within 120 days 
        after the expiration of the 60-day period in paragraph 
        (3)(B)(iii) of this subsection, unless the State and Indian 
        tribe by mutual agreement extend the time period.
            ``(F) The Secretary in consultation with the Indian tribes 
        and the States shall develop a panel of independent mediators 
        which shall be periodically updated. If after 120 days from a 
        State's request for negotiations or a final declaratory 
        judgment not subject to further review, the State and Indian 
        tribe have not agreed to recommend a compact to the Secretary, 
        the State and Indian tribe shall enter into compulsory 
        mediation, pursuant to the following procedures:
                    ``(i) The Secretary shall provide the State and 
                Indian tribe with a list of names of 3 mediators 
                randomly selected from the panel of independent 
                mediators. The State and Indian tribe each shall remove 
                a different 1 of the 3 from the list, and the remaining 
                mediator shall conduct the mediation.
                    ``(ii) The mediator shall attempt to achieve a 
                compact within a 60-day period, which period may be 
                extended at the agreement of the State and Indian 
                tribe.
                    ``(iii) If compulsory mediation fails, the State 
                and Indian tribe shall submit their last best offer to 
                the mediator, who shall evaluate the offers under the 
                terms of the Act and recommend a compact to the 
                Secretary, except that by mutual agreement the parties 
                may substitute either compulsory arbitration, or a 
                decision by the Secretary instead of a mediator's 
                recommendation.
                    ``(iv) The recommended compact also shall include 
                such provisions which in the opinion of the mediator or 
                arbitrator best meet the objectives of this Act and are 
                consistent with any declaratory judgment issued 
                pursuant to subparagraph (C).
            ``(G) If the parties or the mediator or arbitrator pursuant 
        to this paragraph recommend a compact to the Secretary, the 
        Secretary shall approve such compact and shall publish it in 
        the Federal Register; except that the compact shall not be 
        approved by the Secretary unless it contains provisions for 
        internal controls which are consistent with this Act and the 
        regulations promulgated by the Commission, including, without 
        limitation, provisions relating to cash flow transactions, 
        recordkeeping and reporting, accounting, security, licensing 
        and training of employees, and related matters. The compact 
        also shall not be approved if it violates--
                    ``(i) any provision of this Act or the regulations 
                promulgated by the Commission;
                    ``(ii) any other provision of Federal law that does 
                not relate to jurisdiction over gaming on Indian 
                reservations; or
                    ``(iii) the trust obligations of the United States 
                to Indians.
            ``(H) Except for an appeal under subchapter II of chapter 
        5, of title 5, United States Code, by an Indian tribe or State 
        on the publication of a compact, publication of a compact 
        pursuant to this subsection which permits a form of Class III 
        gaming shall, for the purposes of this Act, be conclusive 
        evidence that such Class III gaming is an activity subject to 
        negotiations under the laws of the State where the gaming is to 
        be conducted, in any matter under consideration by the 
        Commission or a Federal court.
            ``(I) If the Secretary does not approve or disapprove a 
        compact under this subsection before the date that is 45 days 
        after the date that the compact is submitted to the Secretary 
        for approval, or after the expiration of the 180-day period 
        with respect to the last compact proposal in subparagraph (3), 
        the compact shall be considered approved, but only to the 
        extent that the compact is consistent with the provisions of 
        this Act and any regulations promulgated by the Commission.
            ``(J) The Secretary shall publish in the Federal Register 
        notice of any compact that has been approved, or considered to 
        have been approved, under this paragraph.
            ``(8)(A) The Secretary is authorized to approve any compact 
        entered into between an Indian tribe and a State governing 
        gaming on Indian lands of such Indian tribe.
            ``(B) The Secretary may disapprove a compact described in 
        subparagraph (A) only if such compact violates--
                    ``(i) any provision of this Act or the regulations 
                promulgated by the Commission;
                    ``(ii) any other provision of Federal law that does 
                not relate to jurisdiction over gaming on Indian lands, 
                or
                    ``(iii) the trust obligations of the United States 
                to Indians.
            ``(C) If the Secretary does not approve or disapprove a 
        compact described in subparagraph (A) before the date that is 
        45 days after the date on which the compact is submitted to the 
        Secretary for approval, the compact shall be considered to have 
        been approved by the Secretary, but only to the extent the 
        compact is consistent with the provisions of this Act and the 
        regulations promulgated by the Commission.
            ``(D) The Secretary shall publish in the Federal Register 
        notice of any compact that is approved, or considered to have 
        been approved, under this paragraph.
    ``(b) Effect of Amendments.--Class III gaming activities that are 
as a matter of Federal law, lawful in any jurisdiction on the date of 
enactment of the Indian Gaming Regulatory Act Amendments Act of 1994, 
shall notwithstanding any provisions of this Act, remain lawful for 
purposes of section 10.''.
    (10) Section 11 of the Act (25 U.S.C. 2710) is amended to read as 
follows:

``SEC. 11. REVIEW OF CONTRACTS.

    ``(a) Contracts Included.--The Commission shall review and approve 
or disapprove--
            ``(1) any management contract for the operation and 
        management of any gaming activity that an Indian tribe may 
        engage in under the Act; and
            ``(2) gaming-related contracts.
    ``(b) Management Contract Requirements.--The Commission shall 
approve any management contract between an Indian tribe and a person or 
entity licensed by an Indian tribe or the Commission which is entered 
into pursuant to this Act only if it determines that the contract 
provides for--
            ``(1) adequate accounting procedures that are maintained 
        and for verifiable financial reports that are prepared by or 
        for the governing body of the Indian tribe on a monthly basis;
            ``(2) access to the daily gaming operations by appropriate 
        officials of the Indian tribe who shall have the right to 
        verify the daily gross revenues and income derived from any 
        gaming activity;
            ``(3) a minimum guaranteed payment to the Indian tribe that 
        has preference over the retirement of any development and 
        construction costs;
            ``(4) an agreed upon ceiling for the repayment of any 
        development and construction costs;
            ``(5) grounds and mechanisms for the termination of the 
        contract, but any such termination shall not require the 
        approval of the Commission; and
            ``(6) such other provisions as the Commission deems 
        necessary as provided for in regulations promulgated by the 
        Commission.
    ``(c) Maximum Terms and Fees for Management Contracts.--The 
Commission may approve a management contract providing for a fee of up 
to 40 percent of net revenues from an Indian gaming activity determined 
in accordance with generally accepted accounting principles and a term 
of up to ten years, pursuant to regulations to be promulgated by the 
Commission. Such regulations shall take into consideration the nature 
of the management services being provided, the capital investment being 
made, the income projections for the particular gaming activity, and 
any other factors the Commission deems relevant.
    ``(d) Gaming-Related Contract Requirements.--The Commission shall 
approve a gaming related contract between an Indian tribe and a person 
or entity licensed by the Commission which is entered into pursuant to 
this Act only if it determines that the contract provides for--
            ``(1) grounds and mechanisms for termination of the 
        contract, but such termination shall not require the approval 
        of the Commission; and
            ``(2) such other provisions as the Commission deems 
        necessary as provided for in regulations promulgated by the 
        Commission.
    ``(e) Time Period for Review.--By no later than the date that is 
180 days after the date on which a management contract or other gaming-
related contract is submitted to the Commission for approval, the 
Commission shall approve or disapprove such contract on its merits. The 
Commission may extend the 180 day period by not more than 90 days if 
the Commission notifies the Indian tribe in writing of the reason for 
the extension of time. The Indian tribe may bring an action in a 
Federal district court to compel action by the Commission if a contract 
has not been approved or disapproved within the period required by this 
subsection.
    ``(f) Contract Modifications and Void Contracts.--The Commission, 
after notice and hearing, shall have the authority to require 
appropriate contract modifications or may void any contract if it 
determines that any of the provisions of this Act have been violated.
    ``(g) Interests in Real Property.--No contract regulated by this 
Act shall transfer or, in any other manner, convey any interest in land 
or other real property, unless specific statutory authority exists and 
such transfer or conveyance is clearly specified in the contract.
    ``(h) Authority of the Secretary.--The authority of the Secretary 
under section 2103 of the Revised Statutes (25 U.S.C. 81) does not 
extend to any contracts which are regulated pursuant of this Act.
    ``(i) Disapproval of Contracts.--The Commission shall not approve 
any contract if it determines that--
            ``(1) any person having a direct financial interest in, or 
        management responsibility for, such contract, and, in the case 
        of a corporation, those individuals who serve on the board of 
        directors of such corporation and each of its stockholders who 
        hold (directly or indirectly) 10 percent or more or its issued 
        and outstanding stock--
                    ``(A) is an elected member of the governing body of 
                the Indian tribe which is the party to the contract;
                    ``(B) has been or subsequently is convicted of any 
                felony or gaming offense;
                    ``(C) has knowingly and willfully provided 
                materially important false statements or information to 
                the Commission or the Indian tribe pursuant to this Act 
                or has refused to respond to questions propounded by 
                the Commission; or
                    ``(D) has been determined to be a person whose 
                prior activities, criminal record, if any, or 
                reputation, habits, and associations pose a threat to 
                the public interest or to the effective regulation and 
                control of gaming, or create or enhance the dangers of 
                unsuitable, unfair, or illegal practices, methods, and 
                activities in the conduct of gaming or the carrying on 
                of the business and financial arrangements incidental 
                thereto;
            ``(2) the contractor has, or has attempted to, unduly 
        interfere or influence for its gain or advantage any decision 
        or process of tribal government relating to the gaming 
        activity;
            ``(3) the contractor has deliberately or substantially 
        failed to comply with the terms of the contract; or
            ``(4) a trustee, exercising the skill and diligence that a 
        trustee is commonly held to, would not approve the contract.''.
    (11) Section 12 of the Act (25 U.S.C. 2711) is amended to read as 
follows:

``SEC. 12. REVIEW OF EXISTING COMPACTS AND CONTRACTS; INTERIM 
              AUTHORITY.

    ``(a) Review of Existing Compacts.--(1) At any time after the 
Commission authorized by the Indian Gaming Regulatory Act Amendments 
Act has been sworn in and regulations have been promulgated for the 
implementation of the Act as amended, the Commission shall notify each 
Indian tribe and state which, prior to the enactment of the Indian 
Gaming Regulatory Act Amendments Act, entered into a compact that was 
approved by the Secretary, that the compact must be submitted to the 
Commission for its review within 60 days of such notification. Any such 
compact shall be valid under this Act and shall remain in full force 
and effect in accordance with its terms, unless the Commission 
determines that the regulatory and licensing provisions of the compact 
fail to meet the requirements of this Act and any regulations 
promulgated by the Commission.
    ``(2) If the Commission should determine that a compact fails to 
meet the regulatory and licensing requirements of this Act and any 
regulations promulgated by the Commission, then the Commission shall so 
notify the Indian tribe and the State and the Commission shall provide 
for the direct regulation and licensing of the gaming activities 
authorized by such compact pursuant to this Act until such time as the 
Indian tribe or the Indian tribe and the State have developed 
regulations and licenses to govern the gaming activity which meet or 
exceed the requirements imposed by this Act and any regulations 
promulgated by the Commission.
    ``(b) Review of Existing Contracts.--(1) At any time after the 
Commission authorized by the Indian Gaming Regulatory Act Amendments 
Act is sworn in and promulgated regulations for the implementation of 
the Act as amended, the Commission shall notify each Indian tribe and 
management contractor who, prior to the enactment of the Indian Gaming 
Regulatory Act Amendments Act, entered into a management contract that 
was approved by the Secretary, that such contract, including all 
collateral agreements relating to the gaming activity, must be 
submitted to the Commission for its review within 60 days of such 
notification. Any such contract shall be valid under this Act, unless 
it is disapproved by the Commission under this section.
    ``(2)(A) Within 180 days after the submission of a management 
contract, including all collateral agreements, pursuant to this 
section, the Commission shall subject such contract to the requirements 
and procedures under section 11 of this Act.
    ``(B) If the Commission determines that a management contract 
submitted under this section meets the requirements of section 11, and 
the management contractor obtains all of the required licenses, the 
Commission shall approve the management contract.
    ``(C) If the Commission determines that a contract submitted under 
this section does not meet the requirements of section 11, then the 
Commission shall provide written notification to the parties to such 
contract of the necessary modifications and the parties shall have 180 
days to make the modifications.
    ``(c) Interim Authority of the National Indian Gaming Commission.--
Notwithstanding any other provision of this Act, the Secretary and the 
Chairman and the associate members of the National Indian Gaming 
Commission who are holding office on the date of enactment of the 
Indian Gaming Regulatory Act Amendments Act shall continue to exercise 
those authorities vested in them by the Act until such time as the 
members of the Commission authorized by the Act as amended are sworn 
into office. The Commission authorized by the Act as amended shall 
exercise all of the authority conferred on it by the Act as amended and 
shall enforce all of the regulations previously promulgated under the 
act until the same are revised or superseded by regulations promulgated 
by the Commission to implement the Act as amended.''.
    (12) Section 13 of the Act (25 U.S.C. 2712) is repealed.
    (13) Section 143 of the Act (25 U.S.C. 2713) is redesignated as 
section 13 and is amended to read as follows:

``SEC. 13. CIVIL PENALTIES.

    ``(a) Amount.--Any person who commits any act or causes to be done 
any act that violates any provision of this Act or the rules or 
regulations promulgated thereunder, or omits to do any act or causes to 
be omitted any act that is required by any provision or such rule or 
regulation shall be subject to a civil penalty not to exceed $50,000 
per day for each such violation.
    ``(b) Assessment and Collection.--Any civil penalty under this 
section shall be assessed by the Commission and collected in a civil 
action brought by the Attorney General on behalf of the United States. 
Before referral of civil penalty claims to the Attorney General, civil 
penalties may be compromised by the Commission after affording the 
person charged with a violation of this Act, or the rules or 
regulations promulgated by the Commission an opportunity to present 
views and evidence in support thereof to establish that the alleged 
violation did not occur. In determining the amount of such penalty, the 
Commission shall take into account the nature, circumstances, extent, 
and gravity of the violation committed and, with respect to the person 
found to have committed such violation, the degree of culpability, any 
history or prior violations, ability to pay, the effect on ability to 
continue to do business, and such other matters as justice may require.
    ``(c) Temporary Closures.--(1) The Commission may order the 
temporary closure of all or part of an Indian gaming operation for 
substantial violations of the provisions of this Act or rules or 
regulations promulgated by the Commission.
    ``(2) Not later than 30 days after the issuance of an order of 
temporary closure, the Indian tribe or the individual owner of a gaming 
operation shall have the right to request a hearing before the 
Commission to determine whether such order should be made permanent or 
dissolved. A hearing shall be conducted within 30 days after the 
request for a hearing and a final decision shall be rendered 30 days 
after the completion of the hearing.''.
    (14) Section 15 of the Act (25 U.S.C. 2714) is redesignated as 
section 14 and is amended to read as follows:

``SEC. 14. JUDICIAL REVIEW.

    ``Decisions made by the Commission pursuant to sections 7, 8, 9, 
10, 11, 12, and 13 shall be final agency decisions for purposes of 
appeal to the appropriate Federal district court pursuant to chapter 7 
of title 5.''.
    (15) Section 16 of the Act (25 U.S.C. 2715) is repealed.
    (16) Section 17 of the Act (25 U.S.C. 2716) is repealed.
    (17) Section 18 of the Act (25 U.S.C. 2717) is redesignated as 
section 15 and is amended to read as follows:

``SEC. 15. COMMISSION FUNDING.

    ``(a) Annual Fees.--(1) The Commission shall establish a schedule 
of fees to be paid to the Commission annually by each Class II and 
Class III gaming activity that is regulated by this Act.
    ``(2) The rate of the fees imposed under the schedule established 
under paragraph (1) shall be no less than 0.5 percent nor more than 2 
percent of the gross revenues of each gaming operation regulated by 
this Act.
    ``(3) The Commission, by a vote of a majority of its members, shall 
annually adopt the rate of the fees authorized by this section which 
shall be payable to the Commission on a monthly basis.
    ``(4) The fees to be paid by a gaming operation may be adjusted 
downward by the Commission to the extent that regulatory functions are 
performed by the tribe or the tribe and a state, pursuant to 
regulations promulgated by the Commission.
    ``(5) Failure to pay the fees imposed under the schedule 
established under paragraph (1) shall, subject to the regulations of 
the Commission, be grounds for revocation of the approval of the 
Commission of any license required under this Act for the operation of 
gaming activities.
    ``(6) To the extent that revenue derived from fees imposed under 
the schedule established under paragraph (1) are not expended or 
committed at the close of any fiscal year, such surplus funds shall be 
credited to each gaming activity on a pro rata basis against such fees 
imposed for the succeeding year.
    ``(7) For purposes of this section, gross revenue shall constitute 
the annual total amount of money wagered, less any amounts paid out as 
prizes or paid for prizes awarded and less allowance for amortization 
of capital expenditures for structures.
    ``(b) Reimbursement of Costs. The Commission is authorized to 
assess any applicant, except the governing body of an Indian tribe, for 
any license required pursuant to this Act for the actual costs of 
conducting all reviews and investigations necessary to determine 
whether a license should be granted or denied pursuant to this Act.
    ``(c)(1) The Commission, in conjunction with the fiscal year of the 
United States, shall adopt an annual budget for the expenses and 
operation of the Commission.
    ``(2) The budget of the Commission may include a request for 
appropriations as authorized by section 16 of this Act.
    ``(3) A request for appropriations pursuant to paragraph (2) shall 
be submitted by the Commission directly to the Congress beginning in 
the first full fiscal year after the date of enactment of the Indian 
Gaming Regulatory Act Amendments Act.''.
    (18) Section 19 of the Act (25 U.S.C. 2718) is redesignated as 
section 16 and is amended to read as follows:

``SEC. 16. AUTHORIZATION OF APPROPRIATIONS.

    ``Subject to the provisions of section 15 of this Act, there are 
hereby authorized to be appropriated and to remain available until 
expended, $5,000,000 to provide for the operation of the Commission for 
fiscal years 1996, 1997 and 1998.''.
    (19) Section 20 of the Act (25 U.S.C. 2719) is redesignated as 
section 17 and is amended to read as follows:

``SEC. 17. GAMING ON LANDS ACQUIRED AFTER ENACTMENT OF THIS ACT.

    ``(a) Gaming Proscribed on Lands Acquired in Trust.--Except as 
provided in subsection (b), gaming regulated by this Act shall not be 
conducted on lands acquired by the Secretary in trust for the benefit 
of an Indian tribe after the date of enactment of this Act unless--
            ``(1) such lands are located within or contiguous to the 
        boundaries of the reservation of the Indian tribe on the date 
        of enactment of this Act; or
            ``(2) the Indian tribe has no reservation on the date of 
        enactment of this Act and--
                    ``(A) such lands are located in Oklahoma and
                            ``(i) are within the boundaries of the 
                        Indian tribe's former reservation, as defined 
                        by the Secretary, or
                            ``(ii) are contiguous to other land held in 
                        trust or restricted status by the United States 
                        for the Indian tribe in Oklahoma; or
                    ``(B) 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) Exceptions.--Subsection (a) will not apply when--
            ``(1) the Secretary, after consultation with the Indian 
        tribe and a review of the recommendations, if any, of the 
        Governor of the State in which such lands are located, and any 
        other State and local officials, including officials of other 
        Indian tribes or adjacent States, determines that a gaming 
        establishment would be in the best interest of the Indian tribe 
        and its members, and would not be detrimental to the 
        surrounding community; or
            ``(2) lands are taken in trust as part of--
                    ``(A) a settlement of a land claim,
                    ``(B) the initial reservation of an Indian tribe 
                acknowledged by the Secretary under the Federal 
                acknowledgment process, or
                    ``(C) the restoration of lands for an Indian tribe 
                that is restored to Federal recognition.
            ``(3) Subsection (a) shall not apply to--
                    ``(A) any lands involved in the trust petition of 
                the St. Croix Chippewa Indians of Wisconsin that is the 
                subject of the action filed in the Untied States 
                District Court for the District of Columbia entitled 
                St. Croix Chippewa Indians of Wisconsin v. United 
                States, Civ. No. 86-2278, or
                    ``(B) the interests of Miccosukee Tribe of Indians 
                of Florida in approximately 25 contiguous acres of 
                land, more or less, in Dade County, Florida, located 
                within one mile of the intersection of State Road 
                Numbered 27 (also known as Krome Avenue) and the 
                Tamiami Trial.
    ``(c) Authority of the Secretary.--Nothing in this section shall 
affect or diminish the authority and responsibility of the Secretary to 
take land into trust.
    ``(d) Application of the Internal Revenue Code.--(1) The provisions 
of the Internal Revenue Code of 1986 (including sections 1441, 3402(q), 
6041, and chapter 35 of such Code) concerning the reporting and 
withholding of taxes with respect to the winnings from gaming or 
wagering operations shall apply to Indian gaming operations conducted 
pursuant to this Act, or under a compact entered into under Section 10 
of this Act that is in effect, in the same manner as such provisions 
apply to State gaming and wagering operations, and any exemptions 
allowed to States from taxation of such gaming or wagering operations 
shall be allowed to Indian tribes.
    ``(2) The provisions of section 60501 of the Internal Revenue Code 
of 1986 shall apply to an Indian gaming establishment not designated by 
the Secretary of the Treasury as a financial institution pursuant to 
chapter 53 of tile 31, United States Code.
    ``(3) The provisions of this subsection shall apply notwithstanding 
any other provision of law enacted before, on, or after the date of 
enactment of this Act unless such other provision of law specifically 
cites this subsection.''.
    (20) Section 21 of the Act (25 U.S.C. 2720) is redesignated as 
section 18.
    (21) Section 22 of the Act (25 U.S.C. 2721) is redesignated as 
section 19.
    (22) Section 23 of the Act is redesignated as section 20.
    (23) Section 24 of the Act is redesignated as section 21.
    (24) At the end of the Act, add the following new section 22:

``SEC. 22.

    Section 5312(a)(2) of title 31, Untied States Code, is amended--
            ``(1) by redesignating subparagraphs (X) and (Y) as 
        subparagraphs (Y) and (Z) respectively; and
            ``(2) by inserting after subparagraph (W) the following new 
        subparagraph:
                    ``(X) an Indian gaming establishment:''.

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