[Congressional Bills 104th Congress]
[From the U.S. Government Publishing Office]
[H.R. 1512 Introduced in House (IH)]







104th CONGRESS
  1st Session
                                H. R. 1512

 To amend the Indian Gaming Regulatory Act to bring more balance into 
  the negotiation of Tribal-State compacts, to require an individual 
 participating in class II or class III Indian gaming to be physically 
   present at the authorized gaming activity, and for other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             April 7, 1995

 Mr. Solomon (for himself, Mr. Torricelli, Mr. LoBiondo, Mr. Martini, 
 Mr. Roemer, Mr. Upton, and Mrs. Vucanovich) introduced the following 
bill; which was referred to the Committee on Resources, and in addition 
  to the Committee on the Judiciary, for a period to be subsequently 
   determined by the Speaker, in each case for consideration of such 
 provisions as fall within the jurisdiction of the committee concerned

_______________________________________________________________________

                                 A BILL


 
 To amend the Indian Gaming Regulatory Act to bring more balance into 
  the negotiation of Tribal-State compacts, to require an individual 
 participating in class II or class III Indian gaming to be physically 
   present at the authorized gaming activity, and for other purposes.

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

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``Fair Indian Gaming 
Act''.
    (b) Table of Contents.--The table of contents for this Act is as 
follows:

Sec. 1. Short title; table of contents.
Sec. 2. Compact negotiation and approval.
Sec. 3. Gaming on after-acquired lands.
Sec. 4. Physical presence required to participate in class II and class 
                            III gaming on Indian lands.
Sec. 5. Indian gaming restricted.
Sec. 6. Definitions of class III gaming and commercial.
Sec. 7. Moratorium on new class III gaming.
Sec. 8. Regulation of Indian gaming pursuant to a State Constitution.
Sec. 9. National Indian Gaming Commission.
Sec. 10. Reporting and bookkeeping.
Sec. 11. Background investigations.
Sec. 12. Criminal laws.
Sec. 13. Appropriations and fees.
Sec. 14. Reports.

SEC. 2. COMPACT NEGOTIATION AND APPROVAL.

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

SEC. 3. GAMING ON AFTER-ACQUIRED LANDS.

    (a) Consultation; Approval by State Legislature.--Subparagraph (A) 
of section 20(b)(1) of the Indian Gaming Regulatory Act (25 U.S.C. 
2719(b)(1)) is amended to read as follows:
            ``(A) the Governor and the legislature of the State in 
        which the gaming is to be conducted (after consultation with 
        appropriate State and local officials and officials of the 
        Indian tribe, other nearby Indian tribes, and communities 
        across State borders that would be directly affected by gaming 
        conducted on such lands) determines that a gaming establishment 
        on newly acquired lands would be in the best interest of the 
        Indian tribe and its members and would not be detrimental to 
        the surrounding communities (including communities across State 
        borders that would be directly affected by gaming conducted on 
        such lands), but only if the Secretary concurs with the 
        determination of the Governor and the legislature;''.
    (b) Newly Acknowledged or Restored Tribes.--Section 20(b)(1) of the 
Indian Gaming Regulatory Act (25 U.S.C. 2719(b)(1)) is amended--
            (1) in subparagraph (B)--
                    (A) by inserting ``after the date of the enactment 
                of the Fair Indian Gaming Act'' after ``trust'' in the 
                matter preceding clause (i); and
                    (B) by striking out the period at the end thereof 
                and inserting ``; or''; and
            (2) by adding at the end the following:
            ``(C) an Act of Congress enacted after the date of the 
        enactment of this subparagraph, concurred in by the Governor 
        and the legislature of the State in which the gaming activity 
        is to be conducted, authorizes such gaming to be conducted on 
        lands--
                    ``(i) taken into trust as part of the initial 
                reservation of an Indian tribe acknowledged by the 
                Secretary under the Federal acknowledgment process, or
                    ``(ii) restored for an Indian tribe that is 
                restored to Federal recognition.''.

SEC. 4. PHYSICAL PRESENCE REQUIRED TO PARTICIPATE IN CLASS II AND CLASS 
              III GAMING ON INDIAN LANDS.

    Section 11 of the Indian Gaming Regulatory Act (25 U.S.C. 2710) is 
amended by adding at the end the following new subsection:
    ``(f) An individual may only participate in class II gaming on 
Indian lands authorized pursuant to subsection (b) and class III gaming 
on Indian lands authorized pursuant to subsection (d) by being 
physically present at the gaming activity on the lands with respect to 
which the gaming is authorized.''.

SEC. 5. INDIAN GAMING RESTRICTED.

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

SEC. 6. DEFINITIONS OF CLASS III GAMING AND COMMERCIAL.

    (a) Class III Gaming.--Section 4 of the Indian Gaming Regulatory 
Act (25 U.S.C. 2703) is amended--
            (1) in paragraph (7)(A)(i), by inserting after 
        ``therewith)'' the following: ``except video bingo''; and
            (2) in paragraph (8), by inserting before the period at the 
        end the following: ``, including, but not limited to, gambling 
        devices (as such term is defined in subsection (a) of the first 
        section of the Act of January 2, 1951 (Chapter 1194; 64 Stat. 
        1134)), electronic or electromechanical facsimiles of any game 
        of chance, and any and all forms of electronic video gaming or 
        devices, such as video bingo, video pull-tabs, video keno, and 
        video blackjack''.
    (b) Commercial.--Section 4 of the Indian Gaming Regulatory Act (25 
U.S.C. 2703) is amended by adding at the end the following:
            ``(11) The term `commercial' means a private, for-profit 
        business and, in the case of class III gaming, includes a 
        State-run lottery.''.

SEC. 7. MORATORIUM ON NEW CLASS III GAMING.

    (a) In General.--All class III gaming enterprises on Indian lands 
that are not specifically authorized pursuant to a Tribal-State 
compact, or procedures in lieu of a compact, under the Indian Gaming 
Regulatory Act (25 U.S.C. 2701 et seq.) as of the date of enactment of 
this Act are prohibited for the two-year period beginning on the date 
of enactment of this Act unless specifically approved by a State during 
the period.
    (b) Definitions.--For the purposes of this section--
            (1) the term ``class III gaming'' has the meaning given 
        such term by the Indian Gaming Regulatory Act (25 U.S.C. 2701 
        et seq.), as amended by this Act; and
            (2) the term ``United States'' includes the District of 
        Columbia and the territories and possessions of the United 
        States.

SEC. 8. REGULATION OF INDIAN GAMING PURSUANT TO A STATE CONSTITUTION.

    (a) In General.--Section 11 of the Act (25 U.S.C. 2710), as amended 
by section 4 of this Act, is further amended by adding at the end the 
following:
    ``(g) Notwithstanding any other provision of this Act, in the case 
of class II gaming or class III gaming on Indian lands located within a 
State in which the Constitution of that State specifically authorizes 
gambling, such class II or III gaming, as the case may be, on such 
Indian lands may only be conducted in the manner, to the extent, and 
subject to the same terms and conditions, as authorized by the 
Constitution and laws of that State, and the Indian tribe desiring to 
conduct such class II or III gaming shall be subject to all laws of the 
State relating to such gaming.''.
    (b) Effective Date.--The amendment made by subsection (a) shall 
apply with respect to any class II or III gaming (as defined in section 
4 of the Indian Gaming Regulatory Act (25 U.S.C. 2703)) on Indian lands 
conducted after the date of the enactment of this Act.

SEC. 9. NATIONAL INDIAN GAMING COMMISSION.

    (a) Additional Members.--Paragraph (1) of section 5(b) of the 
Indian Gaming Regulatory Act (25 U.S.C. 2704(b)) is amended to read as 
follows:
    ``(1) 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, as follows:
            ``(A) a Chairman;
            ``(B) two associate members from among individuals 
        nominated by Indian tribes; and
            ``(C) two associate members from among individuals 
        nominated by the Governors of the States.''.
    (b) Composition.--Section 5(b)(3) of the Indian Gaming Regulatory 
Act (25 U.S.C. 2704(b)(3)) is amended in the first sentence by striking 
``two'' and inserting ``three''.
    (c) Quorum.--Section 5(d) of the Indian Gaming Regulatory Act (25 
U.S.C. 2704(d)) is amended by striking ``Two'' and inserting ``Three''.
    (d) Powers.--Section 7(a) of the Indian Gaming Regulatory Act (25 
U.S.C. 2706(a)) is amended by striking ``2 members'' each place it 
appears and inserting ``3 members''.
    (e) Civil Penalties.--Section 14(b)(2) of the Indian Gaming 
Regulatory Act (25 U.S.C. 2713(b)(2)) is amended by striking out ``two 
of its members'' and inserting in lieu thereof ``three of its 
members''.
    (f) Subpoena.--Section 16(a) of the Indian Gaming Regulatory Act 
(25 U.S.C. 2715(a)) is amended by striking ``two members''.
    (g) Commission Funding.--Section 18(a)(3) of the Indian Gaming 
Regulatory Act (25 U.S.C. 2717(a)(3)) is amended by striking ``two of 
its members'' and inserting ``three of its members''.
    (h) Effective Date; Transition Rules.--(1) Except as required by 
paragraph (2), the amendments made by this section shall take effect at 
the end of the 90-day period beginning on the date of enactment of this 
Act and shall apply with respect to any action taken by the National 
Indian Gaming Commission after the end of such period.
    (2) Not later than 90 days after the date of enactment of this Act, 
the President shall make the initial appointments of the associate 
members of the National Indian Gaming Commission, as required by the 
amendments made by subsection (a) of this section, in accordance with 
the Indian Gaming Regulatory Act, as amended by this Act.

SEC. 10. REPORTING AND BOOKKEEPING.

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

                      ``reporting and bookkeeping

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

SEC. 11. BACKGROUND INVESTIGATIONS.

    (a) Role of Attorney General.--The Indian Gaming Regulatory Act (25 
U.S.C. 2701 et seq.), as amended by section 9 of this Act, is amended 
by inserting after section 21A the following new section:

                      ``background investigations

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

SEC. 12. CRIMINAL LAWS.

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

SEC. 13. APPROPRIATIONS AND FEES.

    (a) Repeal of Authorization of Appropriations.--Section 19 of the 
Indian Gaming Regulatory Act (25 U.S.C. 2718) is amended to read as 
follows:

               ``prohibition on use of appropriated funds

    ``Sec. 19. Beginning with the first fiscal year beginning after the 
date of the enactment of this section, appropriated funds may not be 
used for the operation of the Commission to carry out its functions 
under this Act.''.
    (b) Increase in Allowable Fees.--Section 18(a)(2)(B) of such Act 
(25 U.S.C. 2717(a)(2)(B)) is amended by striking ``$1,500,000'' and 
inserting ``$3,750,000''.

SEC. 14. REPORTS.

    (a) Criminal Activity Relating to Indian-Sponsored Gaming 
Establishments.--Not later than six months after the date of the 
enactment of this Act, the Attorney General of the United States, the 
Secretary of the Treasury, and the Secretary of the Interior, jointly, 
shall conduct a study and submit a report to the Congress on criminal 
activity, including the pressure of organized crime, on Indian-
sponsored gaming establishments.
    (b) Most Effective Gaming Regulations.--Not later than one year 
after the date of enactment of this Act, the Attorney General shall 
conduct a study of the most effective gaming regulations both on and 
off Indian reservations and prepare and disseminate to the public a 
report to serve as a guide for States and Indian tribes seeking to 
regulate Indian gaming. The report shall include model regulations to 
serve as a guide for regulations under a Tribal-State compact under the 
Indian Gaming Regulatory Act (25 U.S.C. 2701 et seq.).
                                 <all>
HR 1512 IH----2