[Congressional Bills 105th Congress]
[From the U.S. Government Publishing Office]
[S. 1077 Introduced in Senate (IS)]







105th CONGRESS
  1st Session
                                S. 1077

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


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                             July 28, 1997

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 1997''.

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. Application of the Internal Revenue Code of 1986.
``Sec. 20. Gaming on lands acquired after October 17, 1988.
``Sec. 21. Dissemination of information.
``Sec. 22. Severability.
``Sec. 23. Criminal penalties.
``Sec. 24. Conforming amendment.'';
            (2) by striking sections 2 and 3 and inserting the 
        following new sections:

``SEC. 2. CONGRESSIONAL FINDINGS.

    ``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 the activities described in 
                subparagraph (A);
            ``(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 Indian tribal governments;
            ``(4) while Indian tribes have the right to regulate the 
        operation of gaming activities on Indian lands, if those gaming 
        activities are--
                    ``(A) not specifically prohibited by Federal law; 
                and
                    ``(B) conducted within a State that as a matter of 
                public policy permits those gaming activities,
        Congress has the authority to regulate the privilege of doing 
        business with Indian tribes in Indian country (as that term is 
        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 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, tribal 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 that is 
        adequate to shield those 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 that 
        gaming.'';
            (3) in section 4--
                    (A) by redesignating paragraphs (7) and (8) as 
                paragraphs (6) and (7), respectively;
                    (B) by striking paragraphs (1) through (6) and 
                inserting the following new paragraphs:
            ``(1) Applicant.--The term `applicant' means any person who 
        applies for a license pursuant to this Act, including any 
        person who applies 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.'';
                    (C) by striking paragraphs (9) and (10); and
                    (D) by adding after paragraph (7) (as redesignated 
                by subparagraph (A) of this paragraph) the following 
                new paragraphs:
            ``(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 
        that is entered into pursuant to this Act.
            ``(10) Gaming operation.--The term `gaming operation' means 
        an entity that conducts class II or class III gaming on Indian 
        lands.
            ``(11) Gaming-related contract.--The term `gaming-related 
        contract' means--
                    ``(A) any agreement for an amount of more than 
                $50,000 per year 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) any agreement or contract that provides for 
                financing of an amount more than $50,000 per year for 
                the construction or rehabilitation of any facility in 
                which a gaming activity is to be conducted.
            ``(12) 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.
            ``(13) 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 such gaming operation in the 1-year 
                period preceding the effective date of the proposed 
                agreement between the enterprise and a class II or 
                class III gaming operation was not less than $250,000.
            ``(14) 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)(I) the title to which is--
                                    ``(aa) held by an Indian tribe 
                                subject to a restriction by the United 
                                States against alienation;
                                    ``(bb) held in trust by the United 
                                States for the benefit of an individual 
                                Indian; or
                                    ``(cc) held by an individual 
                                subject to restriction by the United 
                                States against alienation; and
                            ``(II) over which an Indian tribe exercises 
                        governmental power.
            ``(15) 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.
            ``(16) 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.
            ``(17) 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.
            ``(18) 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 that contract.
            ``(19) 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.
            ``(20) 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.
            ``(21) Person.--The term `person' means an individual, 
        firm, corporation, association, organization, partnership, 
        trust, consortium, joint venture, or entity.
            ``(22) Secretary.--The term `Secretary' means the Secretary 
        of the Interior.'';
            (4) by striking sections 5 through 19 and inserting the 
        following new sections:

``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 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 pecuniary interest in, or management 
                responsibility for, any gaming-related contract or any 
                other contract approved pursuant to this Act.
            ``(4) Political affiliation.--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.
            ``(5) Additional qualifications.--
                    ``(A) In general.--The Commission shall be composed 
                of the most qualified individuals available. In making 
                appointments to the Commission, the President shall 
                give special reference to the training and experience 
                of individuals in the fields of corporate finance, 
                accounting, auditing, and investigation or law 
                enforcement.
                    ``(B) Tribal government experience.--Not less than 
                2 members of the Commission shall be individuals with 
                extensive experience or expertise in tribal government.
            ``(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, 1 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 member of the Commission (other 
        than the Chairperson) 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 to be 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 for 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 mails 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) establish precertification criteria that 
                apply to management contractors and other persons 
                having material control over a gaming operation;
                    ``(U) approve all management and gaming-related 
                contracts; and
                    ``(V) 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 1 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 a review described in 
        paragraph (1) or fails to exercise that 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 agency 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 to be 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 relevant facts and circumstances 
                regarding the matter under investigation by the 
                Commission pursuant to this subsection.
                    ``(B) Administrative investigations.--The 
                Commission may, at the discretion of the Commission, 
                and as specifically authorized by this Act, 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 court described in 
                subparagraph (B) 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 or civil 
                        proceedings.
                    ``(B) Statutory construction.--
                            ``(i) In general.--The authority of the 
                        Commission to conduct investigations and take 
                        actions under subparagraph (A) 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.
                            ``(ii) Effect of transmittal by the 
                        commission.--The transmittal by the Commission 
                        of evidence pursuant to subparagraph (A)(ii) 
                        may not be construed to constitute a condition 
                        precedent with respect to any action taken by 
                        any department or agency referred to in clause 
                        (i).
            ``(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 rule or regulation promulgated under 
        this Act).

``SEC. 8. REGULATORY FRAMEWORK.

    ``(a) Class II Gaming.--For class II gaming, Indian tribes shall 
retain the exclusive right of those tribes to, if the exercise of that 
right is made 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 Compact.--For class III 
gaming conducted under the authority of a 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) Violations of Minimum Federal Standards.--
            ``(1) Class ii gaming.--
                    ``(A) In general.--In any case in which an Indian 
                tribe that regulates or conducts class II gaming on 
                Indian lands substantially fails to meet or enforce 
                minimum Federal standards for that gaming, after 
                providing the Indian tribe notice and reasonable 
                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 relating to class II gaming conducted 
by the Indian tribe.
                    ``(B) Exercise of exclusive authority.--The 
                Commission may excercise exclusive authority in 
                carrying out the activities specified in subparagraph 
                (A) 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 for that gaming.
            ``(2) Class iii gaming.--In any case in which an Indian 
        tribe or a State (or both) that regulates class III gaming on 
        Indian lands fails to meet or enforce minimum Federal standards 
        for class III gaming, after providing notice and reasonable 
        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 relating to class III gaming conducted 
        by the Indian tribe. That authority of the Commission may be 
        exclusive until such time as the regulatory or internal control 
        systems of the Indian tribe or the State (or both) meet or 
        exceed the minimum Federal regulatory, licensing, or internal 
        control requirements established by the Commission for that 
        gaming.

``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.--
            ``(1) In general.--The Advisory Committee shall be composed 
        of 8 members who shall be appointed by the President not later 
        than 120 days after the date of enactment of the Indian Gaming 
        Regulatory Act Amendments Act of 1997, of which--
                    ``(A) 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, and represent, Indian tribal governments 
                involved in gaming covered under this Act;
                    ``(B) 3 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 
                involved in gaming covered under this Act, and shall 
                have experience as State gaming regulators; and
                    ``(C) 2 members shall each be an employee of the 
                Department of Justice.
            ``(2) Vacancies.--Any vacancy on the Advisory Committee 
        shall not affect its powers, but shall be filled in the same 
        manner as the original appointment.
    ``(c) Recommendations for Minimum Federal Standards.--
            ``(1) In general.--Not later than 180 days after the date 
        on which all initial members of the Advisory Committee have 
        been appointed under subsection (b), the Advisory Committee 
        shall develop and submit to the entities referred to in 
        paragraph (2) recommendations for minimum Federal standards 
        relating to background investigations, internal control 
        systems, and licensing standards (as described in section 
        7(c)).
            ``(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.--The minimum Federal 
        standards recommended or established pursuant to this section 
        may be developed taking into account for industry standards 
        existing at the time of the development of the standards. The 
        Advisory Committee, and the Commission in promulgating 
        standards pursuant to subsection (d), shall, in addition to 
considering any other factor that the Commission considers to be 
appropriate, consider--
                    ``(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 Federal regulatory 
requirements and licensing standards.
    ``(e) Travel.--Each member of the Advisory Committee who is 
appointed under subparagraph (A) or (B) of subsection (b)(1) and who is 
not an officer or employee of the Federal Government or a government of 
a State 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 the home or the regular place of business of 
that member, 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 10 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) a gaming operation;
            ``(2) a key employee of a gaming operation;
            ``(3) a management contractor or gaming-related contractor;
            ``(4) a gaming service industry; or
            ``(5) a 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) 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 management 
                contract referred to in subparagraph (A) shall be 
                effective unless the Commission expressly approves the 
                management contract.
                    ``(C) Requirement of additional provisions.--The 
                Commission may require that a management contract 
                referred to in subparagraph (A) include any provisions 
                that are reasonably necessary to meet the requirements 
                of this Act.
                    ``(D) Ineligibility or exemption.--The Commission 
                may, with respect to an applicant who does not have the 
                ability to exercise any significant control over a 
                licensed gaming operation--
                            ``(i) determine that applicant to be 
                        ineligible to hold a license; or
                            ``(ii) exempt that applicant from being 
                        required to hold a license.
    ``(d) 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).
    ``(e) 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 hearings and investigations and final 
        action.--
                    ``(A) Deadline for hearings and investigations.--
                Not later than 90 days after receiving the materials 
                described in paragraph (2), the Commission shall 
                complete the investigation described in paragraph (1) 
                and any hearings associated with the investigation 
                conducted pursuant to that paragraph.
                    ``(B) Deadline for final action.--Not later than 10 
                days after the date specified in subparagraph (A), the 
                Commission shall take final action to grant or deny a 
                license to the applicant.
            ``(4) Denials.--
                    ``(A) In general.--The Commission may disapprove an 
                application submitted to the Commission under this 
                section and deny a license to the applicant.
                    ``(B) Order of denial.--If the Commission denies a 
                license to an applicant under subparagraph (A), the 
                Commission shall prepare an order denying such license. 
                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.
            ``(5) 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 any rule or regulation 
                promulgated under this Act); and
                    ``(B) such bonds as the Commission may require for 
                the faithful performance of all requirements imposed by 
                this Act (including any rule or regulation promulgated 
                under this Act).
            ``(6) 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 under this paragraph 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.
    ``(f) 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 any rule or regulation 
                promulgated under this Act).
                    ``(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 (e); 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 1997 for a renewal period of 18 
                months.
                    ``(B) Action before expiration.--The Commission 
                shall act upon a timely filed license renewal 
                application 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, and shall be 
        accompanied by full payment of all license fees and assessments 
        that are required by law to be paid to the Commission.
            ``(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.
    ``(g) Hearings.--
            ``(1) In general.--The Commission shall establish 
        procedures for the conduct of hearings associated with 
        licensing, including procedures for issuing, 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 the decision referred to in 
                subparagraph (A) and order referred to in subparagraph 
                (B) 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 by the date specified in 
                subparagraph (A)), 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.
    ``(h) 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) that Indian gaming is located within a State 
                that permits that 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 are used only--
                                    ``(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 assist in funding 
                                operations of local government 
                                agencies;
                                    ``(VI) to comply with the 
                                provisions of section 17; or
                                    ``(VIII) to make per capita 
                                payments to members of the Indian tribe 
                                pursuant to clause (viii);
                            ``(iv) the Indian tribe provides to the 
                        Commission annual outside audit reports of the 
                        class II gaming operation of the Indian tribe, 
                        which may be encompassed within existing 
                        independent tribal audit systems;
                            ``(v) each contract for supplies, services, 
                        or concessions for a contract amount equal to 
                        more than $50,000 per year, other than a 
                        contract for professional legal or accounting 
                        services, relating to such gaming is subject to 
                        such independent audit reports 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 are conducted in a manner that 
                        adequately protects the environment and public 
                        health and safety;
                            ``(vii) there is 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 the 
                                        officials referred to in item 
                                        (aa) and the management by 
                                        those 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 a background 
                                        investigation conducted under 
                                        item (bb) before the issuance 
                                        of any such license;
                            ``(viii) net revenues from any class II 
                        gaming activities conducted or licensed by any 
                        Indian tribal government are 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 the minors or 
                                legally incompetent persons referred to 
                                in subclause (III) 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 is 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 
                                clauses (v) through (vii) (other than 
                                the requirements of clause 
                                (vii)(II)(cc)), and (x); 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, is eligible to receive a tribal 
                        license for a class II gaming operation 
                        conducted on Indian lands within the 
                        jurisdiction of the Indian tribe if that 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) of subparagraph (A) shall not bar the 
                        continued operation of a class II gaming 
                        operation described in clause (ix) of that 
                        subparagraph that was operating on September 1, 
                        1986, if--
                                    ``(I) that 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 that gaming 
                                operation pays an appropriate 
                                assessment to the Commission pursuant 
                                to section 17 for the regulation of 
                                that 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 
                        that gaming operation was actually operated on 
                        October 17, 1988.
                    ``(C) List.--The Commission shall--
                            ``(i) maintain a list of each gaming 
                        operation that is subject to subparagraph (B); 
                        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 not less than 1 year that begins after the date of 
                enactment of the Indian Gaming Regulatory Act 
Amendments Act of 1997; 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 under 
        this subsection if the Commission determines, on the basis of 
        available information, and after a hearing if requested by the 
        Indian 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 
                        gaming 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 subsection is in effect with respect to a gaming activity 
        conducted by an Indian tribe--
                    ``(A) the Indian tribe shall--
                            ``(i) submit an annual independent audit 
                        report required under subsection (b)(3)(A)(iv); 
                        and
                            ``(ii) submit to the Commission a complete 
                        resume of each employee hired and licensed by 
                        the Indian tribe subsequent to the issuance of 
                        a certificate of self-regulation; and
                    ``(B) the Commission may not assess a fee under 
                section 17 on gaming operated by the Indian tribe 
                pursuant to paragraph (1) in excess of \1/4\ of 1 
                percent of the net revenue from that activity.
            ``(4) Rescission.--The Commission may, for just cause and 
        after a reasonable opportunity for a hearing, rescind a 
        certificate of self-regulation issued under this subsection 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 under this Act, the Indian tribe--
            ``(1) shall immediately suspend that license; and
            ``(2) after providing notice, holding a hearing, and making 
        findings of fact under procedures established pursuant to 
        applicable tribal law, may revoke that 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 those activities are--
                    ``(A) authorized by--
                            ``(i) a compact that--
                                    ``(I) is approved pursuant to 
                                tribal law by the governing body of the 
                                Indian tribe having jurisdiction over 
                                those lands;
                                    ``(II) meets the requirements of 
                                section 11(b)(3) for the conduct of 
                                class II gaming; and
                                    ``(III) is approved by the 
                                Secretary under paragraph (4); or
                            ``(ii) the Secretary under procedures 
                        prescribed by the Secretary under paragraph 
                        (3)(B)(vii);
                    ``(B) located in a State that permits that gaming 
                for any purpose by any person; and
                    ``(C) conducted in conformance with--
                            ``(i) a compact that--
                                    ``(I) is in effect; and
                                    ``(II) is entered into by an Indian 
                                tribe and a State and approved by the 
                                Secretary under paragraph (4); or
                            ``(ii) procedures prescribed by the 
                        Secretary under paragraph (3)(B)(vii).
            ``(2) Compact negotiations.--
                    ``(A) In general.--Any Indian tribe having 
                jurisdiction over the Indian lands upon which a class 
                III gaming activity is being conducted, or is to be 
                conducted, shall request the State in which those lands 
                are located to enter into negotiations for the purpose 
                of entering into a compact governing the conduct of 
                gaming activities. Upon receiving such a request, the 
                State shall negotiate with the Indian tribe in good 
                faith to enter into such a compact.
                    ``(B) Approval by the secretary.--Any State and any 
                Indian tribe may enter into a compact governing class 
                III gaming activities on the Indian lands of the Indian 
                tribe, but that compact shall take effect only when 
                notice of approval by the Secretary of that compact has 
                been published by the Secretary in the Federal 
                Register.
            ``(3) Actions.--
                    ``(A) In general.--The United States district 
                courts shall have jurisdiction over--
                            ``(i) any cause of action initiated by an 
                        Indian tribe arising from the failure of a 
                        State to enter into negotiations with the 
                        Indian tribe for the purpose of entering into a 
                        compact under paragraph (2) or to conduct such 
                        negotiations in good faith;
                            ``(ii) any cause of action initiated by a 
                        State or Indian tribe to enjoin a class III 
                        gaming activity located on Indian lands and 
                        conducted in violation of any compact entered 
                        into under paragraph (2) that is in effect; and
                            ``(iii) any cause of action initiated by 
                        the Secretary to enforce the procedures 
                        prescribed under subparagraph (B)(vii).
                    ``(B) Procedures.--
                            ``(i) In general.--An Indian tribe may 
                        initiate a cause of action described in 
                        subparagraph (A)(i) only after the expiration 
                        of the 180-day period beginning on the date on 
                        which the Indian tribe requests the State to 
                        enter into negotiations under paragraph (2)(A).
                            ``(ii) Burden of proof.--In any action 
                        described in subparagraph (A)(i), upon 
                        introduction of evidence by an Indian tribe 
                        that--
                                    ``(I) a compact has not been 
                                entered into under paragraph (2); and
                                    ``(II) the State did not respond to 
                                the request of the Indian tribe to 
                                negotiate such a compact or did not 
                                respond to such request in good faith,
                        the burden of proof shall be upon the State to 
                        prove that the State has negotiated with the 
                        Indian tribe in good faith to conclude a 
                        compact governing the conduct of gaming 
                        activities.
                            ``(iii) Failure to negotiate.--If, in any 
                        action described in subparagraph (A)(i), the 
                        court finds that the State has failed to 
                        negotiate in good faith with the Indian tribe 
                        to conclude a compact governing the conduct of 
                        gaming activities, the court shall order the 
                        State and the Indian tribe to conclude such a 
                        compact within a 60-day period beginning on the 
                        date of that order. In determining in such an 
                        action whether a State has negotiated in good 
                        faith, the court--
                                    ``(I) may take into account the 
                                public interest, public safety, 
                                criminality, financial integrity, and 
                                adverse economic impacts on existing 
                                gaming activities; and
                                    ``(II) shall consider any demand by 
                                the State for direct taxation of the 
                                Indian tribe or of any Indian lands as 
                                evidence that the State has not 
                                negotiated in good faith.
                            ``(iv) Procedure in the event of failure to 
                        conclude a compact.--If a State and an Indian 
                        tribe fail to conclude a compact governing the 
                        conduct of gaming activities on the Indian 
                        lands subject to the jurisdiction of such 
                        Indian tribe within the 60-day period provided 
                        in the order of a court issued under clause 
                        (iii), the Indian tribe and the State shall 
                        each submit to a mediator appointed by the 
                        court a proposed compact that represents the 
                        last best offer of the Indian tribe and the 
                        State for a compact. The mediator shall select 
                        from the 2 proposed compacts the proposed 
                        compact that best comports with--
                                    ``(I) the terms of this Act;
                                    ``(II) any other applicable Federal 
                                law; and
                                    ``(III) the findings and order of 
                                the court.
                            ``(v) Submission of compact to state and 
                        indian tribe.--The mediator appointed under 
                        clause (iv) shall submit to the State and the 
                        Indian tribe the proposed compact selected by 
                        the mediator under clause (iv).
                            ``(vi) Consent of state.--If a State 
                        consents to a proposed compact submitted to the 
                        State under clause (v) during the 60-day period 
                        beginning on the date on which the proposed 
                        compact is submitted to the State under clause 
                        (v), the proposed compact shall be treated as a 
                        compact entered into under paragraph (2).
                            ``(vii) Failure of state to consent.--If 
                        the State does not consent during the 60-day 
                        period described in clause (vi) to a proposed 
                        compact submitted by a mediator under clause 
                        (v), the mediator shall notify the Secretary 
                        and the Secretary shall prescribe, in 
                        consultation with the Indian tribe, 
                        procedures--
                                    ``(I) that are consistent with the 
                                proposed compact selected by the 
                                mediator under clause (iv), the 
                                provisions of this Act, and the 
                                applicable provisions of the laws of 
                                the State; and
                                    ``(II) under which class III gaming 
                                may be conducted on the Indian lands 
                                over which the Indian tribe has 
                                jurisdiction.
            ``(4) Approval by secretary.--
                    ``(A) In general.--The Secretary is authorized to 
                approve any compact entered into between an Indian 
                tribe and a State governing gaming on Indian lands of 
                such Indian tribe.
                    ``(B) Disapproval by secretary.--The Secretary may 
                disapprove a compact described in subparagraph (A) only 
                if such compact violates--
                            ``(i) any provision of this Act;
                            ``(ii) any other provision of Federal law 
                        that does not relate to jurisdiction over 
                        gaming on Indian lands; or
                            ``(iii) the trust obligation of the United 
                        States to Indians.
                    ``(C) Failure of the secretary to take final 
                action.--If the Secretary does not approve or 
                disapprove a compact described in subparagraph (A) 
                before the expiration of the 45-day period beginning on 
                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.
                    ``(D) Publication of notice.--The Secretary shall 
                publish in the Federal Register notice of any compact 
                that is approved, or considered to have been approved, 
                under this paragraph.
                    ``(E) 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 by a 
                State associated with the publication of the compact, 
                the publication of a compact pursuant to subparagraph 
                (D) or subsection (c)(4) that permits a form of class 
                III gaming shall, for 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.
                    ``(F) Effective date of compact.--A compact shall 
                become effective upon the publication of the compact in 
                the Federal Register by the Secretary.
                    ``(G) 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 published in the Federal Register.
            ``(5) 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 any rule or regulation) 
                        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 any rule or regulation);
                            ``(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.
            ``(6) 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 any rule or regulation) made applicable by any 
        compact entered into by the Indian tribe under this subsection 
        that is in effect.
            ``(7) Exemption.--The provisions of sections 2 and 5 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. 1172 and 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 or 
        conducted pursuant to procedures prescribed by the Secretary 
        under this Act, but in no event shall this paragraph be 
        construed as invalidating any exemption from section 2 or 5 of 
        the Act of January 2, 1951, for any compact entered into prior 
        to the date of enactment of this Act or any procedures for 
        conducting a gaming activity prescribed by the Secretary prior 
        to such date of enactment.
    ``(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 under subsection (a) that is in effect or to 
enjoin a class III gaming activity located on Indian lands and 
conducted in violation of such compact that is in effect and that was 
entered into under subsection (a).
    ``(c) 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. Not later than 90 days after 
        the date on which the Commission receives such ordinance or 
        resolution, 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 subsection 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 
                approved or issued under subsection (a) that is in 
                effect; and
                    ``(B) any civil action that arises before, and any 
                crime that is committed before, the expiration of such 
                1-year period shall not be affected by such revocation 
                ordinance, or resolution.
    ``(d) Certain Class III Gaming Activities.--
            ``(1) Compacts entered into before the date of enactment of 
        the indian gaming regulatory act amendments act of 1997.--
                    ``(A) In general.--Subject to subparagraph (B), 
                class III gaming activities that are authorized under a 
                compact approved, or procedures prescribed, by the 
                Secretary under the authority of this Act prior to the 
                date of enactment of the Indian Gaming Regulatory Act 
                Amendments Act of 1997 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 1997 and the amendments made by such Act or any change in State 
law enacted after the approval or issuance of the compact.
                    ``(B) Compact or procedures subject to minimum 
                regulatory standards.--Subparagraph (A) shall apply to 
                a compact or procedures described in that subparagraph 
                on the condition that any class III gaming activity 
                conducted under the compact or procedures shall be 
                subject to all Federal minimum regulatory standards 
                established under this Act and the regulations 
                promulgated under this Act.
            ``(2) Compact entered into after the date of enactment of 
        the indian gaming regulatory act amendments act of 1997.--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, in accordance with 
this section, 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 contracts.--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 a hearing on the record--
            ``(1) shall have the authority to require appropriate 
        contract modifications to ensure compliance with the provisions 
        of this Act; and
            ``(2) may void any contract regulated by the Commission 
        under this Act if the Commission determines that any provision 
        of this Act has 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 1997, 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--
                            ``(i) the Commission shall provide the 
                        parties to such contract written notification 
                        of the necessary modifications; and
                            ``(ii) the parties referred to in clause 
                        (i) shall have 180 days after the date on which 
                        such notification is provided to make the 
                        modifications.
    ``(b) Interim Authority of the National Indian Gaming Commission.--
            ``(1) In general.--Notwithstanding any other provision of 
        this Act, the Chairman and the associate members of the 
        National Indian Gaming Commission who are holding office on the 
        day before the date of enactment of the Indian Gaming 
        Regulatory Act Amendments Act of 1997 shall exercise the 
        authorities described in paragraph (2) until such time as all 
        of the initial members of the Federal Indian Gaming Regulatory 
        Commission are sworn into office.
            ``(2) Authorities.--Until the date specified in paragraph 
        (1), the Chairman and the associate members of the National 
        Indian Gaming Commission referred to in that paragraph shall 
        exercise those authorities vested in the Federal Indian Gaming 
        Regulatory Commission by this Act (other than the authority 
        specified in section 7(a)(1)(A) and any other authority 
        directly related to the administration of the Federal Indian 
        Gaming Regulatory Commission as an independent establishment, 
        as defined in section 104 of title 5, United States Code).
            ``(3) Regulations.--Until such time as the Commission 
        promulgates revised regulations after the date of enactment of 
        the Indian Gaming Regulatory Act Amendments Act of 1997, the 
        regulations promulgated under this Act, as in effect on the day 
        before the date of enactment of the Indian Gaming Regulatory 
        Act Amendments Act of 1997, 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 any rule or 
regulation 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 on the record 
                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 
                under subparagraph (A), 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 section 7, 8, 10, 
13, 14, or 15 shall constitute a final agency decision 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 that 
                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 be equal 
                to 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. Those fees 
        shall be payable to the Commission on a monthly basis.
            ``(4) Adjustment of fees.--The fees imposed upon a gaming 
        operation may be reduced by the Commission to take into account 
        any regulatory functions that 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 revenues 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, 
        those surplus funds shall be credited to each gaming activity 
        that is the subject of the fees on a pro rata basis against 
        those fees imposed for the succeeding year.
    ``(b) Reimbursement of Costs.--The Commission may assess any 
applicant, except the governing body of an Indian tribe, for any 
license required pursuant to this Act. That 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 1997, 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 
        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 1998, 1999, and 2000, to remain available until expended.

``SEC. 19. APPLICATION OF THE INTERNAL REVENUE CODE OF 1986.

    ``(a) 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 in the same manner as 
such provisions apply to State gaming and wagering operations. Any 
exemptions under those provisions to States with respect to taxation of 
that gaming or wagering operation shall be allowed to Indian tribes.
    ``(b) 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.
    ``(c) Statutory Construction.--This section shall apply 
notwithstanding any other provision of law enacted before, on, or 
after, the date of enactment of this Act unless such other provision of 
law specifically cites this subsection.
    ``(d) 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 that the Commission 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 responsibilities under 
this Act or any compact approved by the Secretary.''; and
            (5) by striking section 20(d).

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(14) 
of the Indian Gaming Regulatory Act''.
    (b) Title 18.--Title 18, United States Code, is amended--
            (1) in section 1166--
                    (A) in subsection (c), by striking ``a Tribal-State 
                compact approved by the Secretary of the Interior under 
                section 11(d)(8) of the Indian Gaming Regulatory Act 
                that is in effect'' and inserting ``a compact approved 
                by the Secretary of the Interior under section 12(a) of 
                the Indian Gaming Regulatory Act that is in effect or 
                pursuant to procedures prescribed by the Secretary of 
                the Interior under section 12(a)(3)(B)(iii) of such 
                Act''; and
                    (B) in subsection (d), by striking ``a Tribal-State 
                compact approved by the Secretary of the Interior under 
                section 11(d)(8) of the Indian Gaming Regulatory Act'' 
                and inserting ``a compact approved by the Secretary of 
                the Interior under section 12(a) of the Indian Gaming 
                Regulatory Act or pursuant to procedures prescribed by 
                the Secretary of the Interior under section 
                12(a)(3)(B)(iii) of such Act,'';
            (2) in section 1167, by striking ``pursuant to an ordinance 
        or resolution approved by the National Indian Gaming 
        Commission'' each place it appears; and
            (3) in section 1168, by striking ``pursuant to an ordinance 
        or resolution approved by the National Indian Gaming 
        Commission,'' each place it appears.
    (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(15) 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(14) of such 
                Act''; and
            (2) in section 3704(b), by striking ``section 4(4) of the 
        Indian Gaming Regulatory Act'' and inserting ``section 4(14) of 
        the Indian Gaming Regulatory Act''.
                                 <all>