[Congressional Bills 104th Congress]
[From the U.S. Government Publishing Office]
[S. 487 Introduced in Senate (IS)]







104th CONGRESS
  1st Session
                                 S. 487

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


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

              March 2 (legislative day, February 22), 1995

Mr. McCain (for himself and Mr. Inouye) introduced the following bill; 
  which was read twice and referred to the Committee on Indian Affairs

_______________________________________________________________________

                                 A BILL


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

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

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Indian Gaming Regulatory Act 
Amendments Act of 1995''.

SEC. 2. AMENDMENTS TO THE INDIAN GAMING REGULATORY ACT.

    The Indian Gaming Regulatory Act (25 U.S.C. 2701 et seq.) is 
amended--
            (1) by striking the first section and inserting the 
        following new section:

``SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

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

``Sec. 1. Short title; table of contents.
``Sec. 2. Congressional findings.
``Sec. 3. Purposes.
``Sec. 4. Definitions.
``Sec. 5. Establishment of the Federal Indian Gaming Regulatory 
                            Commission.
``Sec. 6. Powers of the Chairperson.
``Sec. 7. Powers and authority of the Commission.
``Sec. 8. Regulatory framework.
``Sec. 9. Advisory Committee on Minimum Regulatory Requirements and 
                            Licensing Standards.
``Sec. 10. Licensing.
``Sec. 11. Requirements for the conduct of class I and class II gaming 
                            on Indian lands.
``Sec. 12. Class III gaming on Indian lands.
``Sec. 13. Review of contracts.
``Sec. 14. Review of existing contracts; interim authority.
``Sec. 15. Civil penalties.
``Sec. 16. Judicial review.
``Sec. 17. Commission funding.
``Sec. 18. Authorization of appropriations.
``Sec. 19. Miscellaneous.
``Sec. 20. Dissemination of information.
``Sec. 21. Severability.
``Sec. 22. Criminal penalties.
``Sec. 23. Conforming amendment.
``Sec. 24. Definition of financial institutions.'';
            (2) by striking sections 2 through 19 and inserting the 
        following new sections:

``SEC. 2. CONGRESSIONAL FINDINGS.

    ``The Congress finds that--
            ``(1) Indian tribes are--
                    ``(A) engaged in the operation of gaming activities 
                on Indian lands as a means of generating tribal 
                governmental revenue; and
                    ``(B) 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 Federal Indian policy is to 
        promote tribal economic development, tribal self-sufficiency, 
        and strong tribal government;
            ``(4) while Indian tribes have the right to regulate the 
        operation of gaming activities on Indian lands if such gaming 
        activities are--
                    ``(A) not specifically prohibited by Federal law; 
                and
                    ``(B) conducted within a State that as a matter of 
                public policy permits such gaming activities,
        Congress has the authority to regulate the privilege of doing 
        business with Indian tribes in Indian country (as defined in 
        section 1151 of title 18, United States Code);
            ``(5) systems for the regulation of gaming activities on 
        Indian lands should meet or exceed 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 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.

``SEC. 3. PURPOSES.

    ``The purposes of this Act are--
            ``(1) to ensure the right of Indian tribes to conduct 
        gaming activities on Indian lands in a manner consistent with 
        the decision of the Supreme Court in California et al. v. 
        Cabazon Band of Mission Indians et al. (480 U.S. 202, 107 S. 
        Ct. 1083, 94 L. Ed. 2d 244 (1987)), involving the Cabazon and 
        Morongo Bands of Mission Indians;
            ``(2) 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 
        Indian tribal governments;
            ``(3) to provide a statutory basis for the regulation of 
        gaming activities on Indian lands by an Indian tribe 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
            ``(4) to declare that the establishment of independent 
        Federal regulatory authority for the conduct of gaming 
        activities on Indian lands and the establishment of Federal 
        minimum regulatory requirements for the conduct of gaming 
        activities on Indian lands are necessary to protect such 
        gaming.

``SEC. 4. DEFINITIONS.

    ``For purposes of this Act, the following definitions shall apply:
            ``(1) Applicant.--The term `applicant' means any person who 
        applies for a license pursuant to this Act, including persons 
        applying for a renewal of a license.
            ``(2) Advisory committee.--The term `Advisory Committee' 
        means the Advisory Committee on Minimum Regulatory Requirements 
        and Licensing Standards established under section 9(a).
            ``(3) Attorney general.--The term `Attorney General' means 
        the Attorney General of the United States.
            ``(4) Chairperson.--The term `Chairperson' means the 
        Chairperson of the Federal Indian Gaming Regulatory Commission 
        established under section 5.
            ``(5) Class i gaming.--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.
            ``(6) Class ii gaming.--
                    ``(A) In general.--The term `class II gaming' 
                means--
                            ``(i) the game of chance commonly known as 
                        bingo or lotto including, if played in the same 
                        location, pull-tabs, punch boards, tip jars, 
                        instant bingo, and other games similar to bingo 
                        (whether or not electronic, computer, or other 
                        technologic aids are used in connection 
                        therewith)--
                                    ``(I) which is played for prizes, 
                                including monetary prizes, with cards 
                                bearing numbers or other designations;
                                    ``(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; and
                            ``(ii) card games that--
                                    ``(I) are explicitly authorized by 
                                the laws of a State; or
                                    ``(II) are not explicitly 
                                prohibited by the laws of a State and 
                                are played at any location in the 
                                State, but only if such card games are 
                                played in conformity with any such laws 
                                (including regulations) 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) Exclusions.--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 
                        paragraph (11), except for any class II game 
                        that is played under subparagraph (A)(i) with 
                        technologic aid that has been approved by the 
                        Commission.
                    ``(C) Treatment of certain games.--Notwithstanding 
                any other provision of this paragraph, the term `class 
                II gaming' includes those card games played in the 
                State of Michigan, the State of North Dakota, the State 
                of South Dakota, or the State of Washington, that, on 
                or before May 1, 1988, were actually operated in such 
                State by an Indian tribe, but only to the extent of the 
                nature and scope of the card games that were actually 
                operated by an Indian tribe in such State on or before 
                such date, as determined by the Commission (as defined 
                in paragraph (8)).
            ``(7) Class iii gaming.--The term `class III gaming' means 
        all forms of gaming that are not class I gaming or class II 
        gaming.
            ``(8) Commission.--The term `Commission' means the Federal 
        Indian Gaming Regulatory Commission established under section 
        5.
            ``(9) Compact.--The term `compact' means an agreement 
        relating to the operation of class III gaming on Indian lands 
        entered into by an Indian tribe and a State, that is approved 
        by the Secretary, or an agreement relating to the operation of 
        class III gaming that is negotiated by an Indian tribe and the 
        Secretary, and approved by the Secretary.
            ``(10) Electronic, computer, or other technologic aid.--The 
        term `electronic, computer, or other technologic aid', in 
        connection with class II gaming, means a device, such as a 
        computer, telephone, cable, television, satellite, or bingo 
        blower, that, when used--
                    ``(A) is not a game of chance or a gambling device;
                    ``(B) merely assists a player or the playing of a 
                game; and
                    ``(C) is operated according to applicable Federal 
                communications law.
            ``(11) Electronic or electromechanical facsimile.--The term 
        `electronic or electromechanical facsimile' means any gambling 
        device, as defined in paragraph (12).
            ``(12) Gambling device.--The term `gambling device' means--
                    ``(A) any gambling device, as defined in section 
                1(a) of the Act of January 2, 1951 (commonly referred 
                to as the `Gambling Devices Transportation Act') (64 
                Stat. 1134, chapter 1194; 15 U.S.C. 1171(a)), including 
                any electronic or electromechanical facsimile; and
                    ``(B) does not include a technological aid to class 
                II gaming that is approved by the Commission.
            ``(13) Gaming-related contract.--The term `gaming-related 
        contract' means any agreement for an amount of more than 
        $50,000 per year--
                    ``(A) under which an Indian tribe or an agent of 
                any Indian tribe procures gaming materials, supplies, 
                equipment, or services that are used in the conduct of 
                a class II or class III gaming activity, or
                    ``(B) financing contracts or agreements for any 
                facility in which a gaming activity is to be conducted.
            ``(14) Gaming-related contractor.--The term `gaming-related 
        contractor' means any person who enters into a gaming-related 
        contract with an Indian tribe or an agent of an Indian tribe, 
        including any person with a financial interest in such 
        contract.
            ``(15) Gaming service industry.--The term `gaming service 
        industry' means any form of enterprise that provides goods or 
        services that are used in conjunction with any class II or 
        class III gaming activity, in any case in which--
                    ``(A) the proposed agreement between the enterprise 
                and a class II or class III gaming operation, or the 
                aggregate of such agreements is for an amount of not 
                less than $100,000 per year; or
                    ``(B) the amount of business conducted by such 
                enterprise with any gaming operation in the 1-year 
                period preceding the effective date of such agreement 
                was not less than $250,000.
            ``(16) Indian lands.--The term `Indian lands' means--
                    ``(A) all lands within the limits of any Indian 
                reservation; and
                    ``(B) any lands--
                            ``(i) the title to which is held in trust 
                        by the United States for the benefit of any 
                        Indian tribe; or
                            ``(ii) the title to which is--
                                    ``(I) held by an Indian tribe 
                                subject to a restriction by the United 
                                States against alienation;
                                    ``(II) held by the United States 
                                for the benefit of an individual 
                                Indian; or
                                    ``(III) held by an individual 
                                subject to restriction by the United 
                                States against alienation; and
                            ``(iii) over which an Indian tribe 
                        exercises governmental power.
            ``(17) Indian tribe.--The term `Indian tribe' means any 
        Indian tribe, band, nation, or other organized group or 
        community of Indians that--
                    ``(A) is recognized as eligible by the Secretary 
                for the special programs and services provided by the 
                United States to Indians because of their status as 
                Indians; and
                    ``(B) is recognized as possessing powers of self-
                government.
            ``(18) Key employee.--The term `key employee' means any 
        individual 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 any pit boss, shift boss, credit executive, cashier 
        supervisor, gaming facility manager or assistant manager, or 
        manager or supervisor of security employees.
            ``(19) Management contract.--The term `management contract' 
        means any contract or collateral agreement between an Indian 
        tribe and a contractor, if such contract or agreement provides 
        for the management of all or part of a gaming operation.
            ``(20) Management contractor.--The term `management 
        contractor' means any person entering into a management 
        contract with an Indian tribe or an agent of the Indian tribe 
        for the management of a gaming operation, including any person 
        with a financial interest in such contract.
            ``(21) Material control.--The term `material control' means 
        the exercise of authority or supervision or the power to make 
        or cause to be made any discretionary decision with regard to 
        matters which have a substantial effect on the financial or 
        management aspects of a gaming operation.
            ``(22) Net revenues.--The term `net revenues' means the 
        gross revenues of an Indian gaming activity reduced by the sum 
        of--
                    ``(A) any amounts paid out or paid for as prizes; 
                and
                    ``(B) the total operating expenses associated with 
                the gaming activity, excluding management fees.
            ``(23) Person.--The term `person' means an individual, 
        firm, corporation, association, partnership, trust, consortium, 
        joint venture, entity, or gaming operation.
            ``(24) Secretary.--The term `Secretary' means the Secretary 
        of the Interior.

``SEC. 5. ESTABLISHMENT OF THE FEDERAL INDIAN GAMING REGULATORY 
              COMMISSION.

    ``(a) Establishment.--There is established as an independent agency 
of the United States, a Commission to be known as the Federal Indian 
Gaming Regulatory Commission. Such Commission shall be an independent 
establishment, as defined in section 104 of title 5, United States 
Code.
    ``(b) Composition of the Commission.--
            ``(1) In general.--The Commission shall be composed of 3 
        full-time members, who shall be appointed by the President, by 
        and with the advice and consent of the Senate.
            ``(2) Citizenship of members.--Each member of the 
        Commission shall be a citizen of the United States.
            ``(3) Requirements for members.--No member of the 
        Commission may--
                    ``(A) pursue any other business or occupation or 
                hold any other office;
                    ``(B) be actively engaged in or, other than through 
                distribution of gaming revenues as a member of an 
                Indian tribe, have any direct pecuniary interest in 
                gaming activities;
                    ``(C) other than through distribution of gaming 
                revenues as a member of an Indian tribe, have any 
                pecuniary interest in any business or organization that 
                holds a gaming license under this Act or that does 
                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) Political affiliation.--
                    ``(A) In general.--Not more than 2 members of the 
                Commission shall be members of the same political 
                party. In making appointments to the Commission, the 
                President shall appoint members of different political 
                parties, to the extent practicable.
                    ``(B) Tribal membership.--At least 2 members of the 
                Commission shall each be a member of a federally 
                recognized Indian tribe. No 2 members appointed under 
                this subparagraph shall be members of the same Indian 
                tribe.
            ``(5) Additional requirements.--The Commission shall be 
        composed of the most qualified individuals available, subject 
        to the following conditions:
                    ``(A) Certified public accountant representation.--
                One member of the Commission shall be a certified 
                public accountant with not less than 5 years of 
                progressively responsible experience in accounting and 
                auditing, and a comprehensive knowledge of the 
                principles and practices of corporate finance.
                    ``(B) Law enforcement representation.--One member 
                of the Commission shall be selected with special 
                reference to training and experience in the fields of 
                investigation or law enforcement.
            ``(6) Background investigations.--The Attorney General 
        shall conduct a background investigation concerning any 
        individual under consideration for appointment to the 
        Commission, with particular regard to the financial stability, 
        integrity, responsibility, and reputation for good character, 
        honesty, and integrity of the nominee.
    ``(c) Chairperson.--The President shall select a Chairperson from 
among the members appointed to the Commission.
    ``(d) Vice Chairperson.--The Commission shall select, by majority 
vote, one of the members of the Commission to serve as Vice 
Chairperson. The Vice Chairperson shall--
            ``(1) serve as Chairperson of the Commission in the absence 
        of the Chairperson; and
            ``(2) exercise such other powers as may be delegated by the 
        Chairperson.
    ``(e) Terms of Office.--
            ``(1) In general.--Each member of the Commission shall hold 
        office for a term of 5 years.
            ``(2) Initial appointments.--Initial appointments to the 
        Commission shall be made for the following terms:
                    ``(A) The Chairperson shall be appointed for a term 
                of 5 years.
                    ``(B) One member shall be appointed for a term of 4 
                years.
                    ``(C) One member shall be appointed for a term of 3 
                years.
            ``(3) Limitation.--No member shall serve for more than 2 
        terms of 5 years each.
    ``(f) Vacancies.--
            ``(1) In general.--Each individual appointed by the 
        President to serve as Chairperson and each member of the 
        Commission shall, unless removed for cause under paragraph (2), 
        serve in the capacity for which such individual is appointed 
        until the expiration of the term of such individual or until a 
        successor is duly appointed and qualified.
            ``(2) Removal from office.--The Chairperson or any member 
        of the Commission may only be removed from office before the 
        expiration of the term of office by the President for neglect 
        of duty, malfeasance in office, or for other good cause shown.
            ``(3) Term to fill vacancies.--The term of any member 
        appointed to fill a vacancy on the Commission shall be for the 
        unexpired term of the member.
    ``(g) Quorum.--Two members of the Commission shall constitute a 
quorum.
    ``(h) Meetings.--
            ``(1) In general.--The Commission shall meet at the call of 
        the Chairperson or a majority of the members of the Commission.
            ``(2) Majority of members determine action.--A majority of 
        the members of the Commission shall determine any action of the 
        Commission.
    ``(i) Compensation.--
            ``(1) Chairperson.--The Chairperson shall be paid at a rate 
        equal to that of level IV of the Executive Schedule under 
        section 5316 of title 5, United States Code.
            ``(2) Other members.--Each other member of the Commission 
        shall be paid at a rate equal to that of level V of the 
        Executive Schedule under section 5316 of title 5, United States 
        Code.
            ``(3) Travel.--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.
    ``(j) Administrative Support Services.--The Administrator of 
General Services shall provide to the Commission on a reimbursable 
basis such administrative support services as the Commission may 
request.

``SEC. 6. POWERS OF THE CHAIRPERSON.

    ``(a) Chief Executive Officer.--The Chairperson shall serve as the 
chief executive officer of the Commission.
    ``(b) Administration of the Commission.--
            ``(1) In general.--Subject to subsection (c), the 
        Chairperson--
                    ``(A) shall employ and supervise such personnel as 
                the Chairperson considers necessary to carry out the 
                functions of the Commission, and assign work among such 
                personnel;
                    ``(B) 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, United 
                States Code;
                    ``(C) 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;
                    ``(D) 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;
                    ``(E) may request the head of any Federal agency to 
                detail any personnel of such agency to the Commission 
                to assist the Commission in carrying out the duties of 
                the Commission under this Act, unless otherwise 
                prohibited by law;
                    ``(F) shall use and expend Federal funds and funds 
                collected pursuant to section 17; and
                    ``(G) may contract for the services of such other 
                professional, technical, and operational personnel and 
                consultants as may be necessary to the performance of 
                the Commission's responsibilities under this Act.
            ``(2) Compensation of staff.--The staff referred to in 
        paragraph (1)(C) shall be paid without regard to the provisions 
        of chapter 51 and subchapters III and VIII of chapter 53 of 
        title 5, United States Code, relating to classification and 
        General Schedule 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 
        title 5, United States Code.
    ``(c) Applicable Policies.--In carrying out any of the functions 
under this section, the Chairperson 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.

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

    ``(a) General Powers.--
            ``(1) In general.--The Commission shall have the power to--
                    ``(A) approve the annual budget of the Commission;
                    ``(B) promulgate regulations to carry out this Act;
                    ``(C) establish a rate of fees and assessments, as 
                provided in section 17;
                    ``(D) conduct investigations, including background 
                investigations;
                    ``(E) issue a temporary order closing the operation 
                of gaming activities;
                    ``(F) after a hearing, make permanent a temporary 
                order closing the operation of gaming activities, as 
                provided in section 15;
                    ``(G) grant, deny, limit, condition, restrict, 
                revoke, or suspend any license issued under any 
                licensing authority conferred upon the Commission 
                pursuant to this Act or fine any person licensed 
                pursuant to this Act for violation of any of the 
                conditions of licensure under this Act;
                    ``(H) inspect and examine all premises in which 
                class II or class III gaming is conducted on Indian 
                lands;
                    ``(I) 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;
                    ``(J) use the United States mail in the same manner 
                and under the same conditions as any department or 
                agency of the United States;
                    ``(K) procure supplies, services, and property by 
                contract in accordance with applicable Federal laws;
                    ``(L) enter into contracts with Federal, State, 
                tribal, and private entities for activities necessary 
                to the discharge of the duties of the Commission;
                    ``(M) serve or cause to be served process or 
                notices of the Commission 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 applicable rules of a tribal, State, or 
                Federal court;
                    ``(N) 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;
                    ``(O) conduct all administrative hearings 
                pertaining to civil violations of this Act (including 
                any civil violation of a regulation promulgated under 
                this Act);
                    ``(P) collect all fees and assessments authorized 
                by this Act and the regulations promulgated pursuant to 
                this Act;
                    ``(Q) assess penalties for violations of the 
                provisions of this Act and the regulations promulgated 
                pursuant to this Act;
                    ``(R) provide training and technical assistance to 
                Indian tribes with respect to all aspects of the 
                conduct and regulation of gaming activities;
                    ``(S) monitor and, as specifically authorized by 
                this Act, regulate class II and class III gaming;
                    ``(T) approve all management-related and gaming-
                related contracts; and
                    ``(U) in addition to the authorities otherwise 
                specified in this Act, delegate, by published order or 
                rule, any of the functions of the Commission (including 
                functions with respect to hearing, determining, 
                ordering, certifying, reporting, or otherwise acting on 
                the part of the Commission concerning any work, 
                business, or matter) to a division of the Commission, 
                an individual member of the Commission, an 
                administrative law judge, or an employee of the 
                Commission.
            ``(2) Statutory construction.--Nothing in this section may 
        be construed to authorize the delegation of the function of 
        rulemaking, as described in subchapter II of chapter 5 of title 
        5, United States Code, with respect to general rules (as 
        distinguished from rules of particular applicability), or the 
        promulgation of any other rule.
    ``(b) Right To Review Delegated Functions.--
            ``(1) In general.--With respect to the delegation of any of 
        the functions of the Commission, 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 of the Commission, upon the initiative 
        of the Commission.
            ``(2) Vote needed for review.--The vote of one member of 
        the Commission shall be sufficient to bring an action referred 
        to in paragraph (1) before the Commission for review, and the 
        Commission shall ratify, revise, or reject the action under 
        review not later than the last day of the applicable period 
        specified in regulations promulgated by the Commission.
            ``(3) Failure to conduct review.--If the Commission 
        declines to exercise the right to such review or fails to 
        exercise such right within the applicable period specified in 
        regulations promulgated by the Commission, the action of any 
        such division of the Commission, individual member of the 
        Commission, administrative law judge, or employee, shall, for 
        all purposes, including any appeal or review of such action, be 
        deemed an action of the Commission.
    ``(c) Minimum Requirements.--Pursuant to the procedures described 
in section 9(d), after receiving recommendations from the Advisory 
Committee, the Commission shall establish minimum Federal standards--
            ``(1) for background investigations, licensing of persons, 
        and licensing of gaming operations associated with the conduct 
        or regulation of class II and class III gaming on Indian lands 
        by tribal governments; and
            ``(2) for the operation of class II and class III gaming 
        activities on Indian lands, including--
                    ``(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) procedures for the protection of the 
                integrity of 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.
    ``(d) Commission Access to Information.--
            ``(1) In general.--The Commission may secure from any 
        department or agency of the United States information necessary 
        to enable the Commission to carry out this Act. Unless 
        otherwise prohibited by law, upon request of the Chairperson, 
        the head of such department or agency shall furnish such 
        information to the Commission.
            ``(2) Information transfer.--The Commission may secure from 
        any law enforcement or gaming regulatory agency of any State, 
        Indian tribe, or foreign nation information necessary to enable 
        the Commission to carry out this Act. Unless otherwise 
        prohibited by law, upon request of the Chairperson, the head of 
        any State or tribal law enforcement agency shall furnish such 
        information to the Commission.
            ``(3) Privileged information.--Notwithstanding sections 552 
        and 552a of title 5, United States Code, the Commission shall 
        protect from disclosure information provided by Federal, State, 
        tribal, or international law enforcement or gaming regulatory 
        agencies.
            ``(4) Law enforcement agency.--For purposes of this 
        subsection, the Commission shall be considered a law 
        enforcement agency.
    ``(e) Investigations and Actions.--
            ``(1) In general.--
                    ``(A) Possible violations.--The Commission may, at 
                the discretion of the Commission, and as specifically 
                authorized by this Act, conduct such investigations as 
                the Commission considers necessary to determine whether 
                any person has violated, is violating, or is conspiring 
                to violate any provision of this Act (including any 
                rule or regulation promulgated under this Act). The 
                Commission may require or permit any person to file 
                with the Commission a statement in writing, under oath, 
                or otherwise as the Commission may determine, 
                concerning all of the relevant facts and circumstances 
                regarding the matter under investigation by the 
                Commission pursuant to this subsection.
                    ``(B) Administrative investigations.--The 
                Commission is authorized, at the discretion of the 
                Commission, and as specifically authorized by this Act, 
                to investigate such facts, conditions, practices, or 
                matters as the Commission considers necessary or proper 
                to aid in--
                            ``(i) the enforcement of any provision of 
                        this Act;
                            ``(ii) prescribing rules and regulations 
                        under this Act; or
                            ``(iii) securing information to serve as a 
                        basis for recommending further legislation 
                        concerning the matters to which this Act 
                        relates.
            ``(2) Administrative authorities.--
                    ``(A) In general.--For the purpose of any 
                investigation or any other proceeding conducted 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 that the Commission 
                considers relevant or material to the inquiry. The 
                attendance of such witnesses and the production of any 
                such records may be required from any place in the 
                United States at any designated place of hearing.
                    ``(B) Requiring appearances or testimony.--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) Court orders.--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 of such court.
            ``(3) Enforcement.--
                    ``(A) In general.--If the Commission determines 
                that any person is engaged, has engaged, or is 
                conspiring to engage, in any act or practice 
                constituting a violation of any provision of this Act 
                (including any rule or regulation promulgated under 
                this Act), the Commission may--
                            ``(i) bring an action in the appropriate 
                        district court of the United States or the 
                        United States District Court for the District 
                        of Columbia to enjoin such act or practice, and 
                        upon a proper showing, the court shall grant, 
                        without bond, a permanent or temporary 
                        injunction or restraining order; or
                            ``(ii) transmit such evidence as may be 
                        available concerning such act or practice as 
                        may constitute a violation of any Federal 
                        criminal law to the Attorney General, who may 
                        institute the necessary criminal proceedings.
                    ``(B) Statutory construction.--The authority of the 
                Commission to conduct investigations and take actions 
                may not be construed to affect in any way the authority 
                of any other agency or department of the United States 
                to carry out statutory responsibilities of such agency 
                or department.
            ``(4) Writs, injunctions, and orders.--Upon application of 
        the Commission, each district court 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 (including any rules and regulations promulgated under 
        this Act).

``SEC. 8. REGULATORY FRAMEWORK.

    ``(a) Class II Gaming.--For class II gaming, Indian tribes shall 
retain the right of such tribes to, in a manner that meets or exceeds 
minimum Federal standards established by the Commission pursuant to 
section 7(c)--
            ``(1) monitor and regulate such gaming; and
            ``(2) conduct background investigations and issue licenses 
        to persons who are required to obtain a license under section 
        10(a).
    ``(b) Class III Gaming Conducted Under a Tribal-State Compact.--For 
class III gaming conducted under the authority of a tribal-State 
compact entered into pursuant to section 12, an Indian tribe or a 
State, or both, as provided in a compact or by tribal ordinance or 
resolution, shall, in a manner that meets or exceeds minimum Federal 
standards established by the Commission pursuant to section 7(c)--
            ``(1) monitor and regulate gaming;
            ``(2) conduct background investigations and issue licenses 
        to persons who are required to obtain a license pursuant to 
        section 10(a); and
            ``(3) establish and regulate internal control systems.
    ``(c) Certain Other Compacts.--For class III gaming conducted under 
the authority of a compact negotiated with the Secretary pursuant to 
section 12(a)(2), such compact shall provide that the Indian tribes or 
other appropriate entity shall, in a manner that meets or exceeds 
minimum Federal standards established by the Commission pursuant to 
section 7(c)--
            ``(1) monitor and regulate such gaming;
            ``(2) conduct background investigations and issue licenses 
        to persons who are required to obtain a license pursuant to 
        section 10(a); and
            ``(3) establish and regulate internal control systems.
    ``(d) Violations of Minimum Federal Standards.--
            ``(1) Class ii gaming.--In any case in which an Indian 
        tribe that conducts class II gaming substantially fails to meet 
        minimum Federal standards for class II gaming, after providing 
        the Indian tribe notice and opportunity to cure violations and 
        to be heard, and after the exhaustion of other authorized 
        remedies and sanctions, the Commission shall have the authority 
        to conduct background investigations, issue licenses, and 
        establish and regulate internal control systems. Such authority 
        of the Commission may be exclusive until such time as the 
        regulatory and internal control systems of the Indian tribe 
        meet or exceed the minimum Federal standards concerning 
        regulatory, licensing, or internal control requirements 
        established by the Commission.
            ``(2) Class iii gaming.--In any case in which an Indian 
        tribe or a State (or both) that regulates class III gaming 
        fails to meet or exceed minimum Federal standards for class III 
        gaming, after providing notice and opportunity to cure 
        violations and be heard, and after the exhaustion of other 
        authorized remedies and sanctions, the Commission shall have 
        the authority to conduct background investigations, issue 
licenses, and establish and regulate internal control systems. Such 
authority of the Commission may be exclusive until such time as the 
regulatory or internal control systems of the Indian tribe or a State, 
or both, meet or exceed the minimum regulatory, licensing, or internal 
control requirements established by the Commission.

``SEC. 9. ADVISORY COMMITTEE ON MINIMUM REGULATORY REQUIREMENTS AND 
              LICENSING STANDARDS.

    ``(a) Establishment.--The President shall establish an advisory 
committee to be known as the `Advisory Committee on Minimum Regulatory 
Requirements and Licensing Standards'.
    ``(b) Members.--The Advisory Committee shall be composed of 7 
members who shall be appointed by the President, of which--
            ``(1) 3 members, selected from a list of recommendations 
        submitted to the President by the Chairperson and Vice 
        Chairperson of the Committee on Indian Affairs of the Senate 
        and the Chairperson and ranking minority member of the 
        Subcommittee on Native American and Insular Affairs of the 
        Committee on Resources of the House of Representatives, shall 
        be members of federally recognized Indian tribes involved in 
        gaming covered under this Act;
            ``(2) 2 members, selected from a list of recommendations 
        submitted to the President by the Majority Leader and the 
        Minority Leader of the Senate and the Speaker and the Minority 
        Leader of the House of Representatives, shall represent State 
        governments; and
            ``(3) 2 members shall each be an employee of the Department 
        of Justice.
    ``(c) Recommendations for Minimum Federal Standards.--
            ``(1) In general.--Not later than 180 days after the date 
        on which the Advisory Committee is fully constituted, the 
        Advisory Committee shall develop and submit to the entities 
        referred to in paragraph (2) recommendations for minimum 
        Federal standards for the conduct of background investigations 
        and the establishment of internal control systems and licensing 
        standards.
            ``(2) Recipients of recommendations.--The Advisory 
        Committee shall submit the recommendations described in 
        paragraph (1) to the Committee on Indian Affairs of the Senate, 
        the Subcommittee on Native American and Insular Affairs of the 
        Committee on Resources of the House of Representatives, the 
        Commission, and to each federally recognized Indian tribe.
            ``(3) Factors for consideration.--While the minimum 
        standards established pursuant to this section may be developed 
        in light of existing industry standards, the Advisory 
        Committee, and Commission in promulgating standards pursuant to 
        subsection (d), shall give equal weight to--
                    ``(A) the unique nature of tribal gaming as 
                compared to non-Indian commercial, governmental, and 
                charitable gaming;
                    ``(B) the broad variations in the scope and size of 
                tribal gaming activity;
                    ``(C) the inherent sovereign right of Indian tribes 
                to regulate their own affairs; and
                    ``(D) the findings and purposes set forth in 
                sections 2 and 3.
    ``(d) Regulations.--Upon receipt of the recommendations of the 
Advisory Committee, the Commission shall hold public hearings on the 
recommendations. After the conclusion of the hearings, the Commission 
shall promulgate regulations establishing minimum regulatory 
requirements and licensing standards.
    ``(e) Travel.--Members of the Advisory Committee appointed under 
paragraphs (1) and (2) of subsection (b) shall be reimbursed for travel 
and per diem in lieu of subsistence expenses during the performance of 
duties of the Advisory Committee while away from home or their regular 
place of business, in accordance with subchapter I of chapter 57 of 
title 5, United States Code.
    ``(f) Termination.--The Advisory Committee shall cease to exist on 
the date that is 60 days after the date on which the Advisory Committee 
submits the recommendations under subsection (c).
    ``(g) Exemption From Federal Advisory Committee Act.--All 
activities of the Advisory Committee shall be exempt from the Federal 
Advisory Committee Act (5 U.S.C. App.).

``SEC. 10. LICENSING.

    ``(a) In General.--A license issued under this Act shall be 
required of--
            ``(1) gaming operations;
            ``(2) key employees of a gaming operation;
            ``(3) management- and gaming-related contractors;
            ``(4) any gaming service industry; and
            ``(5) any person who has material control, either directly 
        or indirectly, over a licensed gaming operation.
    ``(b) Certain Licenses for Management Contractors and Gaming 
Operations.--Notwithstanding any other provision of law relating to 
licenses issued by an Indian tribe or a State (or both) pursuant to 
this Act, the Commission may require licenses of--
            ``(1) management contractors; and
            ``(2) gaming operations.
    ``(c) Statement of Compliance.--
            ``(1) In general.--The Commission may issue a statement of 
        compliance to an applicant for any license or for qualification 
        status under this Act at any time that the Commission is 
        satisfied that one or more eligibility criteria for the license 
        have been satisfied by an applicant.
            ``(2) Contents of statement.--A statement issued under 
        subparagraph (A) shall specify the eligibility criterion 
        satisfied, the date of such satisfaction, and a reservation by 
        the Commission permitting the Commission to revoke the 
        statement of compliance at any time on the basis of a change of 
        circumstances affecting such compliance.
    ``(d) Gaming Operation License.--
            ``(1) In general.--No gaming operation shall operate unless 
        all required licenses and approvals for the gaming operation 
        have been obtained in accordance with this Act.
            ``(2) Written agreements.--
                    ``(A) Filing.--Prior to the operation of any gaming 
                facility or activity, each management contract for the 
                gaming operation shall be in writing and filed with the 
                Commission pursuant to section 13.
                    ``(B) Express approval required.--No such agreement 
                shall be effective unless the Commission expressly 
                approves the agreement.
                    ``(C) Requirement of additional provisions.--The 
                Commission may require that an agreement referred to in 
                subparagraph (A) includes any provisions that are 
                reasonably necessary to meet the requirements of this 
                Act.
                    ``(D) Ineligibility or exemption.--Any applicant 
                who does not have the ability to exercise any 
                significant control over a licensed gaming operation 
                may be determined by the Commission to be ineligible to 
                hold a license or may exempt such applicant from being 
                required to hold a license.
    ``(e) Denial of License.--The Commission, in the exercise of the 
specific licensure power conferred upon the Commission by this Act, 
shall deny a license to any applicant who is disqualified on the basis 
of a failure to meet any of the minimum Federal standards promulgated 
by the Commission pursuant to section 7(c).
    ``(f) Application for License.--
            ``(1) In general.--Upon the filing of the materials 
        specified in paragraph (2), the Commission shall conduct an 
        investigation into the qualifications of an applicant. The 
        Commission may conduct a nonpublic hearing on such 
        investigation concerning the qualifications of the applicant in 
        accordance with regulations promulgated by the Commission.
            ``(2) Filing of materials.--The Commission shall carry out 
        paragraph (1) upon the filing of--
                    ``(A) an application for a license that the 
                Commission is specifically authorized to issue pursuant 
                to this Act; and
                    ``(B) such supplemental information as the 
                Commission may require.
            ``(3) Timing of final action.--After an application is 
        submitted to the Commission, the Commission shall take final 
        action not later than 90 days after--
                    ``(A) completing all hearings and investigations 
                concerning the application; and
                    ``(B) receiving all information required to be 
                submitted to the Commission.
            ``(4) Deadline for hearings and investigations.--Not later 
        than 90 days after receiving the information described in 
        paragraph (3)(B), the Commission shall complete the hearings 
        and investigations described in paragraph (3)(A).
            ``(5) Action by commission.--Following the completion of an 
        investigation and hearing, the Commission shall either deny or 
        grant a license to an applicant.
            ``(6) Denials.--
                    ``(A) In general.--The Commission may deny any 
                application pursuant to this Act.
                    ``(B) Order of denial.--If the Commission denies an 
                application submitted under this section, the 
                Commission shall prepare an order denying such 
                application. In addition, if an applicant requests a 
                statement of the reasons for the denial, the Commission 
                shall prepare such statement and provide the statement 
                to the applicant. The statement shall include specific 
                findings of fact.
            ``(7) Issuance of licenses.--If the Commission is satisfied 
        that an applicant is qualified to receive a license, the 
        Commission shall issue a license to the applicant upon tender 
        of--
                    ``(A) all license fees and assessments as required 
                by this Act (including regulations promulgated by the 
                Commission under this Act); and
                    ``(B) such bonds as the Commission may require for 
                the faithful performance of all requirements imposed by 
                this Act (including regulations promulgated under this 
                Act).
            ``(8) Bonds.--
                    ``(A) Amounts.--The Commission shall, by rules of 
                uniform application, fix the amount of each bond that 
                the Commission requires under this section in such 
                amount as the Commission considers appropriate.
                    ``(B) Use of bonds.--The bonds furnished to the 
                Commission under this paragraph may be applied by the 
                Commission to the payment of any unpaid liability of 
                the licensee under this Act.
                    ``(C) Terms.--Each bond required in accordance with 
                this section shall be furnished--
                            ``(i) in cash or negotiable securities;
                            ``(ii) by a surety bond guaranteed by a 
                        satisfactory guarantor; or
                            ``(iii) by an irrevocable letter of credit 
                        issued by a banking institution acceptable to 
                        the Commission.
                    ``(D) Treatment of principal and income.--If a bond 
                is 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.
    ``(g) Renewal of License.--
            ``(1) In general.--
                    ``(A) Renewals.--Subject to the power of the 
                Commission to deny, revoke, or suspend licenses, any 
                license issued under this section and 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 
                applicable law (including regulations of the 
                Commission).
                    ``(B) Renewal term.--Subject to subparagraph (C), 
                the term of a renewal period for a license issued under 
                this section shall be for a period of not more than--
                            ``(i) 2 years, for each of the first 2 
                        renewal periods succeeding the initial issuance 
                        of a license pursuant to subsection (f); and
                            ``(ii) 3 years, for each succeeding renewal 
                        period.
                    ``(C) Reopening hearings.--The Commission may 
                reopen licensing hearings at any time after the 
                Commission has issued or renewed a license.
            ``(2) Transition.--
                    ``(A) In general.--Notwithstanding any other 
                provision of this subsection, the Commission shall, for 
                the purpose of facilitating the administration of this 
                Act, renew a license for an activity covered under 
                subsection (a) that is held by a person on the date of 
                enactment of the Indian Gaming Regulatory Act 
                Amendments Act of 1995 for a renewal period of 18 
                months.
                    ``(B) Action before expiration.--The Commission 
                shall act upon any license renewal application that is 
                filed in a timely manner prior to the date of 
                expiration of the then current license.
            ``(3) Filing requirement.--Each application for renewal 
        shall be filed with the Commission not later than 90 days prior 
        to the expiration of the then current license. All license fees 
        and assessments that are required by law shall be paid to the 
        Commission on or before the date of expiration of the then 
        current license.
            ``(4) Renewal certificate.--Upon renewal of a license, the 
        Commission shall issue an appropriate renewal certificate, 
        validating device, or sticker, which shall be attached to the 
        license.
    ``(h) Hearings.--
            ``(1) In general.--The Commission shall establish 
        procedures for the conduct of hearings associated with 
        licensing, including procedures for denying, limiting, 
        conditioning, restricting, revoking, or suspending any such 
        license.
            ``(2) Action by commission.--Following a hearing conducted 
        for any of the purposes authorized in this section, the 
        Commission shall--
                    ``(A) render a decision of the Commission;
                    ``(B) issue an order; and
                    ``(C) serve such decision and order upon the 
                affected parties.
            ``(3) Rehearing.--
                    ``(A) In general.--The Commission may, upon a 
                motion made not later than 10 days after the service of 
                a decision and order, order a rehearing before the 
                Commission on such terms and conditions as the 
                Commission considers just and proper if the Commission 
                finds cause to believe that the decision and order 
                should be reconsidered in view of the legal, policy, or 
                factual matters that are--
                            ``(i) advanced by the party that makes the 
                        motion; or
                            ``(ii) raised by the Commission on a motion 
                        made by the Commission.
                    ``(B) Action after rehearing.--Following a 
                rehearing conducted by the Commission, the Commission 
                shall--
                            ``(i) render a decision of the Commission;
                            ``(ii) issue an order; and
                            ``(iii) serve such decision and order upon 
                        the affected parties.
                    ``(C) Final agency action.--A decision and order 
                made by the Commission under paragraph (2) (if no 
                motion for a rehearing is made), or a decision and 
                order made by the Commission upon rehearing shall 
                constitute final agency action for purposes of judicial 
                review.
            ``(4) Jurisdiction.--The United States Court of Appeals for 
        the District of Columbia Circuit shall have jurisdiction to 
        review the licensing decisions and orders of the Commission.
    ``(i) License Registry.--The Commission shall--
            ``(1) maintain a registry of all licenses that are granted 
        or denied pursuant to this Act; and
            ``(2) make the information contained in the registry 
        available to Indian tribes to assist the licensure and 
        regulatory activities of Indian tribes.

``SEC. 11. REQUIREMENTS FOR THE CONDUCT OF CLASS I AND CLASS II GAMING 
              ON INDIAN LANDS.

    ``(a) Class I Gaming.--Class I gaming on Indian lands shall be 
within the exclusive jurisdiction of the Indian tribes and shall not be 
subject to the provisions of this Act.
    ``(b) Class II Gaming.--
            ``(1) In general.--Any class II gaming on Indian lands 
        shall be within the jurisdiction of the Indian tribes, but 
        shall be subject to the provisions of this Act.
            ``(2) Legal activities.--An Indian tribe may engage in, and 
        license and regulate, class II gaming on Indian lands within 
        the jurisdiction of such tribe, if--
                    ``(A) such Indian gaming is located within a State 
                that permits such gaming for any purpose by any person; 
                and
                    ``(B) the class II gaming operation meets or 
                exceeds the requirements of sections 7(c) and 10.
            ``(3) Requirements for class ii gaming operations.--
                    ``(A) In general.--The Commission shall ensure that 
                with regard to any class II gaming operation on Indian 
                lands--
                            ``(i) 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;
                            ``(ii) 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 
                        clause (ix) apply;
                            ``(iii) the net revenues from any class II 
                        gaming activity may only be used--
                                    ``(I) to fund tribal government 
                                operations or programs;
                                    ``(II) to provide for the general 
                                welfare of the Indian tribe and the 
                                members of the Indian tribe;
                                    ``(III) to promote tribal economic 
                                development;
                                    ``(IV) to donate to charitable 
                                organizations;
                                    ``(V) to help fund operations of 
                                local government agencies; or
                                    ``(VI) to comply with the 
                                provisions of section 17;
                            ``(iv) the Indian tribe shall provide to 
                        the Commission annual outside audits of the 
                        class II gaming operation of the Indian tribe, 
                        which may be encompassed within existing 
                        independent tribal audit systems;
                            ``(v) all contracts for supplies, services, 
                        or concessions for a contract amount equal to 
                        more than $50,000 per year, other than 
                        contracts for professional legal or accounting 
                        services, relating to such gaming shall be 
                        subject to such independent audits and any 
                        audit conducted by the Commission;
                            ``(vi) the construction and maintenance of 
                        a class II gaming facility and the operation of 
                        class II gaming shall be conducted in a manner 
                        that adequately protects the environment and 
                        public health and safety;
                            ``(vii) there shall be instituted an 
                        adequate system that--
                                    ``(I) ensures that--
                                            ``(aa) background 
                                        investigations are conducted on 
                                        primary management officials, 
                                        key employees, and persons 
                                        having material control, either 
                                        directly or indirectly, in a 
                                        licensed class II gaming 
                                        operation, and gaming-related 
                                        contractors associated with a 
                                        licensed class II gaming 
                                        operation; and
                                            ``(bb) oversight of such 
                                        officials and the management by 
                                        such officials is conducted on 
                                        an ongoing basis; and
                                    ``(II) includes--
                                            ``(aa) tribal licenses for 
                                        persons involved in class II 
                                        gaming operations, issued in 
                                        accordance with sections 7(c) 
                                        and 10;
                                            ``(bb) 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 or 
                                        licensure; and
                                            ``(cc) notification by the 
                                        Indian tribe to the Commission 
                                        of the results of such 
                                        background investigation before 
                                        the issuance of any such 
                                        license;
                            ``(viii) 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 clause (iii);
                                    ``(II) the Secretary determines 
                                that the plan is adequate, particularly 
                                with respect to uses described in 
                                subclause (I) or (III) of clause (iii);
                                    ``(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;
                                    ``(IV) the per capita payments to 
                                minors and other legally incompetent 
                                persons are disbursed to the parents or 
                                legal guardians of such minors or 
                                legally incompetent persons in such 
                                amounts as may be necessary for the 
                                health, education, or welfare of each 
                                such minor or legally incompetent 
                                person under a plan approved by the 
                                Secretary and the governing body of the 
                                Indian tribe; and
                                    ``(V) the per capita payments are 
                                subject to Federal income taxation and 
                                Indian tribes withhold such taxes when 
                                such payments are made;
                            ``(ix) a separate license shall be issued 
                        by the Indian tribe for any class II gaming 
                        operation owned by any person or entity other 
                        than the Indian tribe and conducted on Indian 
                        lands, that includes--
                                    ``(I) requirements set forth in 
                                subparagraph (C); and
                                    ``(II) requirements that 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; and
                            ``(x) no person or entity, other than the 
                        Indian tribe, 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.
                    ``(B) Transition.--
                            ``(i) In general.--Clauses (ii), (iii), and 
                        (ix) 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 
                                tribe;
                                    ``(II) income to the Indian tribe 
                                from such gaming is used only for the 
                                purposes described in subparagraph 
                                (A)(iii);
                                    ``(III) not less than 60 percent of 
                                the net revenues from such gaming 
                                operation is income to the licensing 
                                Indian tribe; and
                                    ``(IV) the owner of such gaming 
                                operation pays an appropriate 
                                assessment to the Commission pursuant 
                                to section 17 for the regulation of 
such gaming.
                            ``(ii) Limitations on exemption.--The 
                        exemption from application provided under 
                        clause (i) may not be transferred to any person 
                        or entity and shall remain in effect only 
                        during such period as the gaming operation 
                        remains within the same nature and scope as 
                        such gaming operation was actually operated on 
                        October 17, 1988.
                    ``(C) List.--The Commission shall--
                            ``(i) maintain a list of each individually 
                        owned gaming operation that is subject to 
                        subparagraph (A)(x); and
                            ``(ii) publish such list in the Federal 
                        Register.
    ``(c) Petition for Certificate of Self-Regulation.--
            ``(1) In general.--Any Indian tribe that operates, directly 
        or with a management contract, a class II gaming activity may 
        petition the Commission for a certificate of self-regulation if 
        that Indian tribe--
                    ``(A) has continuously conducted such activity for 
                a period of not less than 3 years, including a period 
                of at least 1 year after the date of the enactment of 
                the Indian Gaming Regulatory Act Amendments Act of 
                1995; and
                    ``(B) has otherwise complied with the provisions of 
                this Act.
            ``(2) Issuance of certificate of self-regulation.--The 
        Commission shall issue a certificate of self-regulation if the 
        Commission determines on the basis of available information, 
        and after a hearing if requested by the tribe, that the Indian 
        tribe has--
                    ``(A) conducted its gaming activity in a manner 
                which has--
                            ``(i) resulted in an effective and honest 
                        accounting of all revenues;
                            ``(ii) resulted in a reputation for safe, 
                        fair, and honest operation of the activity; and
                            ``(iii) been generally free of evidence of 
                        criminal or dishonest activity;
                    ``(B) adopted and implemented adequate systems 
                for--
                            ``(i) accounting for all revenues from the 
                        activity;
                            ``(ii) investigation, licensing, and 
                        monitoring of all employees of the gaming 
                        activity; and
                            ``(iii) investigation, enforcement, and 
                        prosecution of violations of its gaming 
                        ordinance and regulations;
                    ``(C) conducted the operation on a fiscally and 
                economically sound basis; and
                    ``(D) paid all fees and assessments that the tribe 
                is required to pay to the Commission under this Act.
            ``(3) Effect of certificate of self-regulation.--During the 
        period in which a certificate of self-regulation issued under 
        this paragraph is in effect with respect to a gaming activity 
        conducted by an Indian tribe--
                    ``(A) the tribe shall--
                            ``(i) continue to submit an annual 
                        independent audit as required by subsection 
                        (b)(3)(A)(iv); and
                            ``(ii) submit to the Commission a complete 
                        resume of each employee hired and licensed by 
                        the tribe subsequent to the issuance of a 
                        certificate of self-regulation; and
                    ``(B) the Commission may not assess a fee on such 
                activity pursuant to section 17 in excess of \1/4\ of 1 
                percent of the gross revenue from such activity.
            ``(4) Rescission.--The Commission may, for just cause and 
        after an opportunity for a hearing, rescind a certificate of 
        self-regulation by majority vote of the members of the 
        Commission.
    ``(d) License Revocation.--If, after the issuance of any license by 
an Indian tribe under this section, the Indian tribe receives reliable 
information from the Commission indicating that a licensee does not 
meet any standard established under section 7(c) or 10, or any other 
applicable regulation promulgated by the Commission, the Indian tribe--
            ``(1) shall suspend such license; and
            ``(2) after notice and hearing under procedures established 
        pursuant to applicable tribal law, may revoke such license.

``SEC. 12. CLASS III GAMING ON INDIAN LANDS.

    ``(a) Requirements for the Conduct of Class III Gaming on Indian 
Lands.--
            ``(1) In general.--Class III gaming activities shall be 
        lawful on Indian lands only if such activities are--
                    ``(A) authorized by a compact that--
                            ``(i) is approved pursuant to tribal law by 
                        the governing body of the Indian tribe having 
                        jurisdiction over such lands;
                            ``(ii) meets the requirements of section 
                        11(b)(3) for the conduct of class II gaming; 
                        and
                            ``(iii) is approved by the Secretary;
                    ``(B) located in a State that permits such gaming 
                for any purpose by any person; and
                    ``(C) conducted in conformance with a tribal-State 
                compact that--
                            ``(i) is in effect; and
                            ``(ii) is--
                                    ``(I) entered into by an Indian 
                                tribe and a State and approved by the 
                                Secretary under paragraph (2); or
                                    ``(II) issued by the Secretary 
                                under paragraph (2).
            ``(2) Compact negotiations.--
                    ``(A) In general.--
                            ``(i) Compact negotiations.--Any Indian 
                        tribe having jurisdiction over the lands upon 
                        which a class III gaming activity is to be 
                        conducted may request the State in which such 
                        lands are located to enter into negotiations 
                        for the purpose of entering into a tribal-State 
                        compact governing the conduct of class III 
                        gaming activities.
                            ``(ii) Requirements for request for 
                        negotiations.--A request for negotiations under 
                        clause (i) shall be in writing and shall 
                        specify each gaming activity that the Indian 
                        tribe proposes for inclusion in the compact. 
                        Not later than 30 days after receipt of such 
                        written request, the State shall respond to the 
                        Indian tribe.
                            ``(iii) Commencement of compact 
                        negotiations.--Compact negotiations conducted 
                        under this paragraph shall commence not later 
                        than 30 days after the date on which a response 
                        by a State is due to the Indian tribe, and 
                        shall be completed not later than 120 days 
                        after the initiation of compact negotiations, 
                        unless the State and the Indian tribe agree to 
                        a different period of time for the completion 
                        of compact negotiations.
                            ``(iv) Inability to meet deadlines for 
                        negotiations.--
                                    ``(I) Notification.--If the State 
                                and the Indian tribe find that the 
                                State and Indian tribe are unable to 
                                commence or complete compact 
                                negotiations within the applicable time 
                                periods provided in this subsection, 
                                the Indian tribe shall notify the 
                                Secretary.
                                    ``(II) Presentation of positions.--
                                Upon receipt of a notice under 
                                subclause (I), the Secretary shall 
                                request that the tribe and the State 
                                present their respective positions, not 
                                later than 60 days after such request, 
                                regarding--
                                            ``(aa) the gaming 
                                        activities that the tribe seeks 
                                        to conduct that are permissible 
                                        under this Act;
                                            ``(bb) the framework for 
                                        regulation of tribal gaming; 
                                        and
                                            ``(cc) such other matters 
                                        as the Secretary may consider 
                                        appropriate.
                    ``(B) Approval of compact.--Not later than 90 days 
                after the date of expiration of the 60-day period 
                specified in subparagraph (A), the Secretary shall 
                approve a compact that meets the requirements of this 
                section, and shall publish the compact in the Federal 
                Register. The compact shall--
                            ``(i) include provisions--
                                    ``(I) that best meet the objectives 
                                of this Act; and
                                    ``(II) for background 
                                investigations, internal controls, and 
                                licensing that are consistent with this 
                                Act (including regulations promulgated 
                                by the Commission pursuant to section 
                                7(c)); and
                            ``(ii) not violate--
                                    ``(I) any provision of this Act 
                                (including regulations promulgated by 
                                the Commission pursuant to this Act);
                                    ``(II) any other provision of 
                                Federal law; or
                                    ``(III) the trust obligation of the 
                                United States to Indians.
                    ``(C) Mandatory disapproval.--Notwithstanding any 
                other provision of this Act, the Secretary shall not 
                have the authority to approve a compact if the compact 
                requires State regulation of Indian gaming absent the 
                consent of the State or the Indian tribe.
                    ``(D) Effect of publication of compact.--Except for 
                an appeal conducted under subchapter II of chapter 5 of 
                title 5, United States Code, by an Indian tribe or a 
                State associated with the publication of the compact, 
                the publication of a compact pursuant to subparagraph 
                (B) that 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.
                    ``(E) Effective date of compact.--Any compact 
                negotiated under this subsection shall become effective 
                upon the publication of the compact in the Federal 
                Register by the Secretary.
                    ``(F) Duties of commission.--Consistent with the 
                provisions of sections 7(c), 8, and 10, the Commission 
                shall monitor and, if specifically authorized, regulate 
                and license class III gaming with respect to any 
                compact that is approved by the Secretary under this 
                subsection and published in the Federal Register.
            ``(3) Provisions of compacts.--
                    ``(A) In general.--A compact negotiated under this 
                subsection may include provisions relating to--
                            ``(i) the application of the criminal and 
                        civil laws (including regulations) of the 
                        Indian tribe or the State that are directly 
                        related to, and necessary for, the licensing 
                        and regulation of such activity in a manner 
                        consistent with sections 7(c), 8, and 10;
                            ``(ii) the allocation of criminal and civil 
                        jurisdiction between the State and the Indian 
                        tribe necessary for the enforcement of such 
                        laws (including regulations);
                            ``(iii) the assessment by the State of the 
                        costs associated with 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 compact 
                        provisions;
                            ``(vi) standards for the operation of such 
                        activity and maintenance of the gaming 
                        facility, including licensing, in a manner 
                        consistent with sections 7(c), 8, and 10; and
                            ``(vii) any other subject that is directly 
                        related to the operation of gaming activities 
                        and the impact of gaming on tribal, State, and 
                        local governments.
                    ``(B) Statutory construction with respect to 
                assessments.--Except for any assessments for services 
                agreed to by an Indian tribe in compact negotiations, 
                nothing in this section may be construed as conferring 
                upon a State or any political subdivision thereof the 
                authority to impose any tax, fee, charge, or other 
                assessment upon an Indian tribe, an Indian gaming 
                operation or the value generated by the gaming 
                operation, or any person or entity authorized by an 
                Indian tribe to engage in a class III gaming activity 
                in conformance with this Act.
            ``(4) Statutory construction with respect to certain rights 
        of indian tribes.--Nothing in this subsection impairs the right 
        of an Indian tribe to regulate class III gaming on the Indian 
        lands of the Indian tribe concurrently with a State and the 
        Commission, except to the extent that such regulation is 
        inconsistent with, or less stringent than, this Act or any laws 
        (including regulations) made applicable by any compact entered 
        into by the Indian tribe under this subsection that is in 
        effect.
            ``(5) Exemption.--The provisions of section 2 of the Act of 
        January 2, 1951 (commonly referred to as the `Gambling Devices 
        Transportation Act') (64 Stat. 1134, chapter 1194, 15 U.S.C. 
        1175) shall not apply to any class II gaming activity or any 
        gaming activity conducted pursuant to a compact entered into 
        after the date of enactment of this Act, but in no event shall 
        this paragraph be construed as invalidating any exemption from 
        the provisions of such section 2 for any compact entered into 
        prior to the date of enactment of this Act.
    ``(b) Jurisdiction of United States District Court for the District 
of Columbia.--The United States District Court for the District of 
Columbia shall have jurisdiction over any action initiated by the 
Secretary, the Commission, a State, or an Indian tribe to enforce any 
provision of a compact entered into under subsection (a) or to enjoin a 
class III gaming activity located on Indian lands and conducted in 
violation of any compact that is in effect and that was entered into 
under subsection (a).
    ``(c) Approval of Compacts.--
            ``(1) In general.--The Secretary is authorized to approve 
        any compact between an Indian tribe and a State governing the 
        conduct of class III gaming on Indian lands of such Indian 
        tribe entered into under subsection (a).
            ``(2) Reasons for disapproval by secretary.--The Secretary 
        may disapprove a compact entered into under subsection (a) only 
        if such compact violates any--
                    ``(A) provision of this Act or any regulation 
                promulgated by the Commission pursuant to this Act;
                    ``(B) other provision of Federal law; or
                    ``(C) trust obligation of the United States to 
                Indians.
            ``(3) Effect of failure to act on compact.--If the 
        Secretary fails to approve or disapprove a compact entered into 
        under subsection (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 pursuant to this Act.
            ``(4) Notification.--The Secretary shall publish in the 
        Federal Register notice of any compact that is approved, or 
        considered to have been approved, under this subsection.
    ``(d) Revocation of Ordinance.--
            ``(1) In general.--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.
            ``(2) Publication of revocation.--An Indian tribe shall 
        submit any revocation ordinance or resolution described in 
        paragraph (1) to the Commission. The Commission shall publish 
        such ordinance or resolution in the Federal Register. The 
        revocation provided by such ordinance or resolution shall take 
        effect on the date of such publication.
            ``(3) Conditional operation.--Notwithstanding any other 
        provision of this subsection--
                    ``(A) 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 
                paragraph (1) 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 paragraph (2), continue to operate 
                such activity in conformance with an applicable compact 
                entered into under subsection (a) that is in effect; 
                and
                    ``(B) any civil action that arises before, and any 
                crime that is committed before, the termination of such 
                1-year period shall not be affected by such revocation 
                ordinance, or resolution.
    ``(e) Certain Class III Gaming Activities.--
            ``(1) Compacts entered into before the date of enactment of 
        the indian gaming regulatory act amendments act of 1995.--Class 
        III gaming activities that are authorized under a compact 
        approved or issued by the Secretary under the authority of this 
        Act prior to the date of enactment of the Indian Gaming 
        Regulatory Act Amendments Act of 1995 shall, during such period 
        as the compact is in effect, remain lawful for the purposes of 
        this Act, notwithstanding the Indian Gaming Regulatory Act 
        Amendments Act of 1995 and the amendments made by such Act or 
        any change in State law enacted after the approval or issuance 
        of the compact.
            ``(2) Compact entered into after the date of enactment of 
        the indian gaming regulatory act amendments act of 1995.--Any 
        compact entered into under subsection (a) after the date 
        specified in paragraph (1) shall remain lawful for the purposes 
        of this Act, notwithstanding any change in State law enacted 
        after the approval or issuance of the compact.

``SEC. 13. 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 this Act; and
            ``(2) unless licensed by an Indian tribe consistent with 
        the minimum Federal standards adopted pursuant to section 7(c), 
        any gaming-related contract.
    ``(b) Management Contract Requirements.--The Commission shall 
approve any management contract between an Indian tribe and a person 
licensed by an Indian tribe or the Commission that is entered into 
pursuant to this Act only if the Commission determines that the 
contract provides for--
            ``(1) adequate accounting procedures that are maintained, 
        and 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) a contract term of not to exceed 5 years, except 
        that, upon the request of an Indian tribe, the Commission may 
        authorize a contract term that exceeds 5 years but does not 
        exceed 7 years, if the Commission is satisfied that the capital 
        investment required, and the income projections for the 
        particular gaming activity, require the additional time; and
            ``(6) grounds and mechanisms for the termination of the 
        contract, but any such termination shall not require the 
        approval of the Commission.
    ``(c) Management Fee Based on Percentage of Net Revenues.--
            ``(1) Percentage fee.--The Commission may approve a 
        management contract that provides for a fee that is based on a 
        percentage of the net revenues of a tribal gaming activity if 
        the Commission determines that such percentage fee is 
        reasonable, taking into consideration surrounding 
        circumstances.
            ``(2) Fee amount.--Except as provided in paragraph (3), a 
        fee described in paragraph (1) shall not exceed an amount equal 
        to 30 percent of the net revenues described in such paragraph.
            ``(3) Exception.--Upon the request of an Indian tribe, if 
        the Commission is satisfied that the capital investment 
        required, and income projections for, a tribal gaming activity, 
        necessitate a fee in excess of the amount specified in 
        paragraph (2), the Commission may approve a management contract 
        that provides for a fee described in paragraph (1) in an amount 
        in excess of the amount specified in paragraph (2), but not to 
        exceed 40 percent of the net revenues described in paragraph 
        (1).
    ``(d) Gaming-Related Contract Requirements.--The Commission shall 
approve a gaming-related contract covered under subsection (a)(2) that 
is entered into pursuant to this Act only if the Commission 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 may be 
        empowered to impose by this Act.
    ``(e) Time Period for Review.--
            ``(1) In general.--Except as provided in paragraph (2), not 
        later than 90 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 the merits of the contract. The 
        Commission may extend the 90-day period for an additional 
        period of not more than 45 days if the Commission notifies the 
        Indian tribe in writing of the reason for the extension of the 
        period. The Indian tribe may bring an action in the United 
        States District Court for the District of Columbia to compel 
        action by the Commission if a contract has not been approved or 
        disapproved by the termination date of an applicable period 
        under this subsection.
            ``(2) Effect of failure of commission to act on certain 
        gaming-related contract.--Any gaming-related contract for an 
        amount less than or equal to $100,000 that is submitted to the 
        Commission pursuant to paragraph (1) by a person who holds a 
        valid license that is in effect under this Act shall be deemed 
        to be approved, if by the date that is 90 days after the 
        contract is submitted to the Commission, the Commission fails 
        to approve or disapprove the contract.
    ``(f) Contract Modifications and Void Contracts.--The Commission, 
after providing notice and hearing--
            ``(1) shall have the authority to require appropriate 
        contract modifications to ensure compliance with the provisions 
        of this Act; or
            ``(2) may void any contract regulated by the Commission 
        under this Act if the Commission determines that any of the 
        provisions of this Act have been violated by the terms of the 
        contract.
    ``(g) Interests in Real Property.--No contract regulated by this 
Act may transfer or, in any other manner, convey any interest in land 
or other real property, unless specific statutory authority exists, all 
necessary approvals for such transfer or conveyance have been obtained, 
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) shall not 
extend to any contract or agreement that is regulated pursuant to this 
Act.
    ``(i) Disapproval of Contracts.--The Commission may not approve a 
contract if the Commission determines that--
            ``(1) any person having a direct financial interest in, or 
        management responsibility for, such contract, and, in the case 
        of a corporation, any individual who serves on the board of 
        directors of such corporation, and any of the stockholders who 
        hold (directly or indirectly) 10 percent or more of its issued 
        and outstanding stock--
                    ``(A) is an elected member of the governing body of 
                the Indian tribe which is a party to the contract;
                    ``(B) has been 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--
                    ``(A) has unduly interfered or influenced for its 
                gain or advantage any decision or process of tribal 
                government relating to the gaming activity; or
                    ``(B) has attempted to interfere or influence a 
                decision pursuant to subparagraph (A);
            ``(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.

``SEC. 14. REVIEW OF EXISTING CONTRACTS; INTERIM AUTHORITY.

    ``(a) Review of Existing Contracts.--
            ``(1) In general.--At any time after the Commission is 
        sworn in and has promulgated regulations for the implementation 
        of this Act, the Commission shall notify each Indian tribe and 
        management contractor who, prior to the enactment of the Indian 
        Gaming Regulatory Act Amendments Act of 1995, entered into a 
        management contract that was approved by the Secretary, that 
        the Indian tribe is required to submit to the Commission such 
        contract, including all collateral agreements relating to the 
        gaming activity, for review by the Commission not later than 60 
        days after such notification. Any such contract shall be valid 
        under this Act, unless the contract is disapproved by the 
        Commission under this section.
            ``(2) Review.--
                    ``(A) In general.--Not later than 180 days after 
                the submission of a management contract, including all 
                collateral agreements, to the Commission pursuant to 
                this section, the Commission shall review the contract 
                to determine whether the contract meets the 
                requirements of section 13 and was entered into in 
                accordance with the procedures under such section.
                    ``(B) Approval of contract.--The Commission shall 
                approve a management contract submitted for review 
                under subsection (a) if the Commission determines 
                that--
                            ``(i) the management contract meets the 
                        requirements of section 13; and
                            ``(ii) the management contractor has 
                        obtained all of the licenses that the 
                        contractor is required to obtain under this 
                        Act.
                    ``(C) Notification of necessary modifications.--If 
                the Commission determines that a contract submitted 
                under this section does not meet the requirements of 
                section 13, 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.
    ``(b) Interim Authority of the National Indian Gaming Commission.--
            ``(1) In general.--Notwithstanding any other provision of 
        this Act, the Chairperson and the associate members of the 
        National Indian Gaming Commission who are holding office on the 
        date of enactment of this Act shall exercise those authorities 
        vested in the Federal Indian Gaming Regulatory Commission by 
        this Act until such time as the members of the Federal Indian 
        Gaming Regulatory Commission are sworn into office.
            ``(2) Transition.--Notwithstanding any other provision of 
        law, the Commission shall exercise the authority conferred on 
        the Commission by this Act, and until such time as the 
        Commission promulgates revised regulations after the date of 
        enactment of the Indian Gaming Regulatory Act Amendments Act of 
        1995, the regulations issued under this Act, as in effect on 
        the day before such date of enactment, shall apply.

``SEC. 15. 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 under this Act, or who fails to carry out any 
act or causes the failure to carry out any act that is required by any 
such provision of law shall be subject to a civil penalty in an amount 
equal to not more than $50,000 per day for each such violation.
    ``(b) Assessment and Collection.--
            ``(1) In general.--Each civil penalty assessed 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 the Commission refers civil penalty 
        claims to the Attorney General, the Commission may compromise 
        the civil penalty after affording the person charged with a 
        violation referred to in subsection (a), an opportunity to 
        present views and evidence in support of such action by the 
        Commission to establish that the alleged violation did not 
        occur.
            ``(2) Penalty amount.--In determining the amount of a civil 
        penalty assessed under this section, the Commission shall take 
        into account--
                    ``(A) the nature, circumstances, extent, and 
                gravity of the violation committed;
                    ``(B) with respect to the person found to have 
                committed such violation, the degree of culpability, 
                any history of prior violations, ability to pay, the 
                effect on ability to continue to do business; and
                    ``(C) such other matters as justice may require.
    ``(c) Temporary Closures.--
            ``(1) In general.--The Commission may order the temporary 
        closure of all or part of an Indian gaming operation for a 
        substantial violation of any provision of law referred to in 
        subsection (a).
            ``(2) Hearing on order of temporary closure.--
                    ``(A) In general.--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.
                    ``(B) Deadlines relating to hearing.--Not later 
                than 30 days after a request for a hearing is made, the 
                Commission shall conduct such hearing. Not later than 
                30 days after the termination of the hearing, the 
                Commission shall render a final decision on the 
                closure.

``SEC. 16. JUDICIAL REVIEW.

    ``A decision made by the Commission pursuant to sections 7, 8, 10, 
13, 14, and 15 shall constitute final agency decisions for purposes of 
appeal to the United States District Court for the District of Columbia 
pursuant to chapter 7 of title 5, United States Code.

``SEC. 17. COMMISSION FUNDING.

    ``(a) Annual Fees.--
            ``(1) In general.--The Commission shall establish a 
        schedule of fees to be paid to the Commission annually by 
        gaming operations for each class II and class III gaming 
        activity that is regulated by this Act.
            ``(2) Limitation on fee rates.--
                    ``(A) In general.--For each gaming operation 
                regulated under this Act, the rate of the fees imposed 
                under the schedule established under paragraph (1) 
                shall not exceed 2 percent of the net revenues of such 
                gaming operation.
                    ``(B) Total amount of fees.--The total amount of 
                all fees imposed during any fiscal year under the 
                schedule established under paragraph (1) shall equal 
                not more than $25,000,000.
            ``(3) Annual fee rate.--The Commission, by a vote of a 
        majority of the members of the Commission, shall annually adopt 
        the rate of the fees authorized by this section. Such fees 
        shall be payable to the Commission on a monthly basis.
            ``(4) Adjustment of fees.--The fees paid by a gaming 
        operation may be adjusted by the Commission to reduce the 
        amount of the fees by an amount that takes into account that 
        regulatory functions are performed by an Indian tribe, or the 
        Indian tribe and a State, pursuant to regulations promulgated 
        by the Commission.
            ``(5) Consequences of failure to pay fees.--Failure to pay 
        the fees imposed under the schedule established under paragraph 
        (1) shall, subject to regulations promulgated by 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) Surplus funds.--To the extent that revenue derived 
        from fees imposed under the schedule established under 
        paragraph (1) exceed the limitation in paragraph (2)(B) or are 
        not expended or committed at the close of any fiscal year, such 
        surplus funds shall be credited to each gaming activity that is 
        the subject of the fees on a pro rata basis against such fees 
        imposed for the succeeding year.
    ``(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. Such assessment shall be an 
amount equal to the actual costs of conducting all reviews and 
investigations necessary for the Commission to determine whether a 
license should be granted or denied to the applicant.
    ``(c) Annual Budget.--
            ``(1) In general.--For the first full fiscal year beginning 
        after the date of enactment of the Indian Gaming Regulatory Act 
        Amendments Act of 1995, and each fiscal year thereafter, the 
        Commission shall adopt an annual budget for the expenses and 
        operation of the Commission.
            ``(2) Request for appropriations.--The budget of the 
        Commission may include a request for appropriations authorized 
        under section 18.
            ``(3) Submission to congress.--Notwithstanding any other 
        provision of law, a request for appropriations made pursuant to 
        paragraph (2) shall be submitted by the Commission directly to 
        the Congress beginning with the request for the first full 
        fiscal year beginning after the date of enactment of this Act, 
        and shall include the proposed annual budget of the Commission 
        and the estimated revenues to be derived from fees.

``SEC. 18. AUTHORIZATION OF APPROPRIATIONS.

    ``Subject to section 17, there are authorized to be appropriated 
$5,000,000 to provide for the operation of the Commission for each of 
fiscal years 1997, 1998, and 1999, to remain available until expended.

``SEC. 19. MISCELLANEOUS.

    ``(a) Gaming Proscribed on Lands Acquired in Trust.--
            ``(1) In general.--Except as provided in paragraph (2), 
        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--
                    ``(A) 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;
                    ``(B) the Indian tribe has no reservation on the 
                date of enactment of this Act and such lands are 
                located in the State of Oklahoma and--
                            ``(i) are within the boundaries of the 
                        former reservation of the Indian tribe, 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 the State of Oklahoma; 
                        or
                    ``(C) such lands are located in a State other than 
                the State of Oklahoma and are within the last 
                recognized reservation of the Indian tribe within the 
                State within which the Indian tribe is presently 
                located.
            ``(2) Exemption for certain trust lands.--Paragraph (1) 
        does not apply in any case in which--
                    ``(A) 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 nearby Indian tribes, 
                determines that a gaming establishment on newly 
                acquired lands--
                            ``(i) would be in the best interest of the 
                        Indian tribe and the members of the Indian 
                        tribe; and
                            ``(ii) would not be detrimental to the 
                        surrounding community;
                    ``(B) lands are taken into trust as part of a 
                settlement of a land claim;
                    ``(C) the initial reservation of an Indian tribe is 
                acknowledged by the Secretary under the Federal 
                acknowledgment process or by an Act of Congress; or
                    ``(D) lands are restored for an Indian tribe that 
                is restored to Federal recognition.
            ``(3) Exemption.--Paragraph (1) 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 United 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 the Miccosukee Tribe of 
                Indians of Florida in approximately 25 contiguous acres 
                of land, more or less, in Dade County, Florida, located 
                within 1 mile of the intersection of State road 
                numbered 27 (also known as Krome Avenue) and the 
                Tamiami Trail.
            ``(4) Authority of the secretary.--Nothing in this section 
        may affect or diminish the authority and responsibility of the 
        Secretary to take land into trust.
    ``(b) Application of the Internal Revenue Code of 1986.--
            ``(1) In general.--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 12 that is in effect, in the same manner as such 
        provisions apply to State gaming and wagering operations. Any 
        exemptions to States with respect to taxation of such gaming or 
        wagering operations shall be allowed to Indian tribes.
            ``(2) Exemption.--The provisions of section 6050I of the 
        Internal Revenue Code of 1986 shall apply to an Indian gaming 
        establishment that is not designated by the Secretary of the 
        Treasury as a financial institution pursuant to chapter 53 of 
        title 31, United States Code.
            ``(3) Statutory construction.--This subsection shall apply 
        notwithstanding any other provision of law enacted before the 
        date of enactment of this Act unless such other provision of 
        law specifically cites this subsection.
    ``(c) Access to Information by State and Tribal Governments.--
Subject to section 7(d), upon the request of a State or the governing 
body of an Indian tribe, the Commission shall make available any law 
enforcement information which it has obtained pursuant to such section, 
unless otherwise prohibited by law, in order to enable the State or the 
Indian tribe to carry out its responsibil- ities under this Act or any 
compact approved by the Secretary.'';
            (3) by striking section 20;
            (4) by redesignating sections 21 through 24 as sections 20 
        through 23, respectively; and
            (5) by adding at the end the following new section:

``SEC. 24. DEFINITION OF FINANCIAL INSTITUTIONS.

    ``Section 5312(a)(2) of title 31, United 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;''.

SEC. 3. CONFORMING AMENDMENTS.

    (a) Title 10.--Section 2323a(e)(1) of title 10, United States Code, 
is amended by striking ``section 4(4) of the Indian Gaming Regulatory 
Act (102 Stat. 2468; 25 U.S.C. 2703(4))'' and inserting ``section 4(16) 
of the Indian Gaming Regulatory Act''.
    (b) Title 18.--Title 18, United States Code, is amended--
            (1) in subsections (c) and (d) of section 1166, by striking 
        ``section 11(d)(8) of the Indian Gaming Regulatory Act'' each 
        place it appears and inserting ``section 12(a)(2)(B) of the 
        Indian Gaming Regulatory Act'';
            (2) in section 1167--
                    (A) in subsection (a), by striking ``National 
                Indian Gaming Commission'' and inserting ``Federal 
                Indian Gaming Regulatory Commission established under 
                section 5 of the Indian Gaming Regulatory Act''; and
                    (B) in subsection (b), by striking ``National 
                Indian Gaming Commission'' and inserting ``Federal 
                Indian Gaming Regulatory Commission''; and
            (3) in section 1168--
                    (A) in subsection (a), by striking ``National 
                Indian Gaming Commission'' and inserting ``Federal 
                Indian Gaming Regulatory Commission established under 
                section 5 of the Indian Gaming Regulatory Act''; and
                    (B) in subsection (b), by striking ``National 
                Indian Gaming Commission'' and inserting ``Federal 
                Indian Gaming Regulatory Commission''.
    (c) Internal Revenue Code of 1986.--Section 168(j)(4)(A)(iv) of the 
Internal Revenue Code of 1986 is amended by striking ``Indian 
Regulatory Act'' and inserting ``Indian Gaming Regulatory Act''.
    (d) Title 28.--Title 28, United States Code, is amended--
            (1) in section 3701(2)--
                    (A) by striking ``section 4(5) of the Indian Gaming 
                Regulatory Act (25 U.S.C. 2703(5))'' and inserting 
                ``section 4(17) of the Indian Gaming Regulatory Act''; 
                and
                    (B) by striking ``section 4(4) of such Act (25 
                U.S.C. 2703(4))'' and inserting ``section 4(16) of such 
                Act''; and
            (2) in section 3704(b), by striking ``section 4(4) of the 
        Indian Gaming Regulatory Act'' and inserting ``section 4(16) of 
        the Indian Gaming Regulatory Act''.
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