[Congressional Bills 105th Congress]
[From the U.S. Government Publishing Office]
[S. 1870 Introduced in Senate (IS)]







105th CONGRESS
  2d Session
                                S. 1870

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


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                             March 26, 1998

 Mr. Campbell 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 Improvement 
Act of 1998''.

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. National Indian Gaming Commission.
``Sec. 6. Powers and authority of the National Indian Gaming Commission 
                            and Chairman.
``Sec. 7. Regulatory framework.
``Sec. 8. Negotiated rulemaking.
``Sec. 9. Requirements for the conduct of class I and class II gaming 
                            on Indian lands.
``Sec. 10. Class III gaming on Indian lands.
``Sec. 11. Review of contracts.
``Sec. 12. Civil penalties.
``Sec. 13. Judicial review.
``Sec. 14. Commission funding.
``Sec. 15. Authorization of appropriations.
``Sec. 16. Application of Internal Revenue Code of 1986; access to 
                            information by States and tribal 
                            governments.
``Sec. 17. Gaming proscribed on lands acquired in trust after the date 
                            of enactment of this Act.
``Sec. 18. Dissemination of information.
``Sec. 19. Severability.
``Sec. 20. Criminal penalties.
``Sec. 21. Conforming amendment.
``Sec. 22. Commission staffing.'';
            (2) by striking sections 2 and 3 and inserting the 
        following;

``SEC. 2. CONGRESSIONAL FINDINGS.

    ``The Congress finds that--
            ``(1) Indian tribes are--
                    ``(A) engaged in the operation of gaming activities 
                on Indian lands as a means of generating tribal 
                governmental revenue; and
                    ``(B) licensing those activities;
            ``(2) because of the unique political and legal 
        relationship between the United States and Indian tribes, 
        Congress has the responsibility of protecting tribal resources 
        and ensuring the continued viability of Indian gaming 
        activities conducted on Indian lands;
            ``(3) 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;
            ``(4) a principal goal of Federal Indian policy is to 
        promote tribal economic development, tribal self-sufficiency, 
        and strong Indian tribal governments;
            ``(5) Indian tribes have the exclusive right to regulate 
        gaming activity on Indian lands, if the gaming activity--
                    ``(A) is not specifically prohibited by Federal 
                law; and
                    ``(B) is conducted within a State that does not, as 
                a matter of public policy, prohibit that gaming 
                activity;
            ``(6) Congress has the authority to regulate the privilege 
        of doing business with Indian tribes in Indian country (as 
        defined in section 1151 of title 18, United States Code);
            ``(7) systems for the regulation of gaming activities on 
        Indian lands should meet or exceed federally established 
        minimum regulatory requirements;
            ``(8) the operation of gaming activities on Indian lands 
        has had a significant impact on commerce with foreign nations, 
        and among the several States, and with the Indian tribes; and
            ``(9) the Constitution vests the Congress with the powers 
        to regulate commerce with foreign nations, and among the 
        several States, and with the Indian tribes, and this Act is 
        enacted in the exercise of those powers.

``SEC. 3. PURPOSES.

    ``The purposes of this Act are--
            ``(1) to ensure the right of Indian tribes to conduct 
        gaming activities on Indian lands in a manner consistent with--
                    ``(A) the inherent sovereign rights of Indian 
                tribes; and
                    ``(B) the decision of the Supreme Court in 
                California et al. v. Cabazon Band of Mission Indians et 
                al. (480 U.S.C. 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 provide States with the opportunity to participate 
        in the regulation of certain gaming activities conducted on 
        Indian lands without compelling any action by a State with 
        respect to the regulation of that gaming.'';
            (3) in section 4--
                    (A) by redesignating paragraphs (7) and (8) as 
                paragraphs (5) and (6), 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) Attorney general.--The term `Attorney General' means 
        the Attorney General of the United States.
            ``(3) Chairman.--The term `Chairman' means the Chairman of 
        the Commission.
            ``(4) 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 (6) (as redesignated 
                by subparagraph (A) of this paragraph) the following 
                new paragraphs:
            ``(7) Commission.--The term `Commission' means the National 
        Indian Gaming Regulatory Commission established under section 
        5.
            ``(8) Compact.--The term `compact' means an agreement 
        relating to the operation of class III gaming on Indian lands 
        that is entered into by an Indian tribe and a State and that is 
        approved by the Secretary.
            ``(9) Gaming operation.--The term `gaming operation' means 
        an entity that conducts class II or class III gaming on Indian 
        lands.
            ``(10) Indian lands.--The term `Indian lands' means--
                    ``(A) all lands within the limits of any Indian 
                reservation; and
                    ``(B) any lands the title to which is held in trust 
                by the United States for the benefit of any Indian 
                tribe or individual or held by any Indian tribe or 
                individual subject to restriction by the United States 
                against alienation and over which an Indian tribe 
                exercises governmental power.
            ``(11) 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.
            ``(12) Management contract.--The term `management contract' 
        means any contract or collateral agreement between an Indian 
        tribe and a contractor, if that contract or agreement provides 
        for the management of all or part of a gaming operation.
            ``(13) 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.
            ``(14) Net revenues.--With respect to a gaming activity, 
        net revenues shall constitute--
                    ``(A) the annual amount of money wagered; reduced 
                by
                    ``(B)(i) any amounts paid out during the year 
                involved for prizes awarded;
                    ``(ii) the total operating expenses for the year 
                involved (excluding any management fees) associated 
                with the gaming activity; and
                    ``(iii) an allowance for amortization of capital 
                expenses for structures.
            ``(15) Person.--The term `person' means--
                    ``(A) an individual; or
                    ``(B) a firm, corporation, association, 
                organization, partnership, trust, consortium, joint 
                venture, or other nongovernmental entity.
            ``(16) Secretary.--The term `Secretary' means the Secretary 
        of the Interior.'';
            (4) in section 5(b)(3), by striking ``At least two members 
        of the Commission shall be enrolled members of any Indian 
        tribe.'' and inserting ``No fewer than 2 members of the 
        Commission shall be individuals who--
            ``(A) are each enrolled as a member of an Indian tribe; and
            ``(B) have extensive experience or expertise in tribal 
        government.'';
            (5) by striking sections 6, 7 and 9 through 16 and 
        redesignating section 8 as section 22 and inserting the 
        following:

``SEC. 6. POWERS AND AUTHORITY OF THE NATIONAL INDIAN GAMING COMMISSION 
              AND CHAIRMAN.

    ``(a) General Powers of Commission.--
            ``(1) In general.--The Commission shall have the power--
                    ``(A) to approve the annual budget of the 
                Commission;
                    ``(B) to promulgate regulations to carry out the 
                duties of the Commission under this Act in the same 
                manner as an independent establishment (as that term is 
                used in section 104 of title 5, United States Code);
                    ``(C) to establish a rate of fees and assessments, 
                as provided in section 14;
                    ``(D) to conduct investigations, including 
                background investigations;
                    ``(E) to issue a temporary order closing the 
                operation of gaming activities;
                    ``(F) after a hearing, to make permanent a 
                temporary order closing the operation of gaming 
                activities, as provided in section 12;
                    ``(G) to 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) to inspect and examine all premises in which 
                class II or class III gaming is conducted on Indian 
                lands;
                    ``(I) to 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) to use the United States mails in the same 
                manner and under the same conditions as any department 
                or agency of the United States;
                    ``(K) to procure supplies, services, and property 
                by contract in accordance with applicable Federal laws;
                    ``(L) to enter into contracts with Federal, State, 
                tribal, and private entities for activities necessary 
                to the discharge of the duties of the Commission;
                    ``(M) to 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 Federal, State, or 
                tribal court;
                    ``(N) to 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) to conduct all administrative hearings 
                pertaining to civil violations of this Act (including 
                any civil violation of a regulation promulgated under 
                this Act);
                    ``(P) to collect all fees and assessments 
                authorized by this Act and the regulations promulgated 
                pursuant to this Act;
                    ``(Q) to assess penalties for violations of the 
                provisions of this Act and the regulations promulgated 
                pursuant to this Act;
                    ``(R) to provide training and technical assistance 
                to Indian tribes with respect to all aspects of the 
                conduct and regulation of gaming activities;
                    ``(S) to monitor and, as specifically authorized by 
                this Act, regulate class II and class III gaming;
                    ``(T) to approve all management contracts and 
                gaming-related contracts; and
                    ``(U) in addition to the authorities otherwise 
                specified in this Act, to 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 that review 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 that action, be 
        deemed an action of the Commission.
    ``(c) Minimum Requirements.--The Commission shall advise the 
Secretary, as provided in section 8(a), with respect to the 
establishment of 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 those 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 that department or agency shall furnish that 
        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 Chairman, the head of 
any State or tribal law enforcement agency shall furnish that 
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, 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, 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) issuing 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.--
                            ``(i) Administration of certain duties.--
                        For the purpose of any investigation or any 
                        other proceeding conducted under this Act, an 
                        individual described in clause (ii) 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 those witnesses and the 
                        production of any such records may be required 
                        from any place in the United States at any 
                        designated place of hearing.
                            ``(ii) Individuals described.--An 
                        individual described in this clause is--
                                    ``(I) any member of the Commission 
                                who is designated by the Commission to 
                                carry out duties specified in clause 
                                (i); or
                                    ``(II) any other officer of the 
                                Commission who is designated by the 
                                Commission to carry out duties 
                                specified in clause (i).
                    ``(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 that 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 that 
                person to appear before the Commission, a member of the 
                Commission, or an 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 that order of the 
                court may be punished by that court as a contempt of 
                that 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 that 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 that 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 that agency or department.
                            ``(ii) Effect of transmittal by the 
                        commission.--The transmittal by the Commission 
                        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).
    ``(f) Powers of the Chairperson.--The Chairman shall have such 
powers as may be delegated to the Chairman by the Commission.

``SEC. 7. REGULATORY FRAMEWORK.

    ``(a) Class II Gaming.--For class II gaming, Indian tribes shall 
retain the right of those tribes, in a manner that meets or exceeds 
minimum Federal standards described in section 6(c) (that are 
established by the Secretary under section 8)--
            ``(1) to monitor and regulate that gaming;
            ``(2) to conduct background investigations; and
            ``(3) to establish and regulate internal control systems.
    ``(b) Class III Gaming Conducted Under a Compact.--For class III 
gaming conducted under the authority of a compact entered into pursuant 
to section 10, 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 described in section 6(c) 
(that are established by the Secretary under section 8)--
            ``(1) monitor and regulate gaming;
            ``(2) conduct background investigations; and
            ``(3) establish and regulate internal control systems.
    ``(c) Violations of Minimum Federal Standards.--
            ``(1) Class ii gaming.--In any case in which an Indian 
        tribe that regulates or conducts class II gaming on Indian 
        lands substantially fails to meet 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. That authority of the Commission 
        may be exclusive until such time as the regulatory and internal 
        control systems of the Indian tribe meet or exceed the minimum 
        Federal standards concerning regulatory, licensing, or internal 
        control requirements established by the Secretary, in 
        consultation with 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 Secretary, in 
        consultation with the Commission, for that gaming.

``SEC. 8. NEGOTIATED RULEMAKING.

    ``(a) In General.--Subject to subsection (b), not later than 180 
days after the date of enactment of the Indian Gaming Regulatory 
Improvement Act of 1998, the Secretary shall, in cooperation with 
Indian tribes, and in accordance with the negotiated rulemaking 
procedures under subchapter III of chapter 5 of title 5, United States 
Code, promulgate minimum Federal standards relating to background 
investigations, internal control systems, and licensing standards (as 
described in section 6(c)).
    ``(b) Negotiated Rulemaking Committee.--The negotiated rulemaking 
committee established under subchapter III of chapter 5 of title 5, 
United States Code, to carry out subsection (a) shall be established by 
the Secretary, in consultation with the Attorney General and the 
Commission.
    ``(c) Factors for Consideration.--While the minimum Federal 
standards established pursuant to this section may be developed with 
due regard for existing industry standards, the Secretary and the 
negotiated rulemaking committee established under subsection (b), in 
promulgating standards pursuant to this section, shall also consider--
            ``(1) the unique nature of tribal gaming as compared to 
        commercial gaming, other governmental gaming, and charitable 
        gaming;
            ``(2) the broad variations in the scope and size of tribal 
        gaming activity;
            ``(3) the inherent sovereign rights of Indian tribes with 
        respect to regulating their own affairs;
            ``(4) the findings and purposes set forth in sections 2 and 
        3;
            ``(5) the effectiveness and efficiency of a national 
        licensing program for vendors or management contractors; and
            ``(6) other matters that are not inconsistent with the 
        purposes of this Act.

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

    ``(a) Class I Gaming.--Class I gaming on Indian lands 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 that Indian tribe, if--
                    ``(A) such Indian gaming is located within a State 
                that permits such gaming for any purpose by any person, 
                organization, or entity (and such gaming is not 
                otherwise specifically prohibited on Indian lands by 
                Federal law); and
                    ``(B) such Indian gaming meets or exceeds the 
                requirements of this section and the standards 
                described in section 6(c) (that are established by the 
                Secretary under section 8).
            ``(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 that Indian 
                        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, 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 help fund operations of 
                                local government agencies;
                                    ``(VI) to comply with the 
                                provisions of section 14; or
                                    ``(VII) 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 $100,000 per year, other than a 
                        contract for professional legal or accounting 
                        services, relating to that gaming is subject to 
                        those 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 those 
                                        officials 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 the standards 
                                        described in section 6(c) (that 
                                        are established by the 
                                        Secretary under section 8);
                                            ``(bb) a standard under 
                                        which 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 that 
                                        background investigation before 
                                        the issuance of any such 
                                        license;
                            ``(viii) net revenues from any class II 
                        gaming activities conducted or licensed by any 
                        Indian tribal government 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 those minors or 
                                legally incompetent persons in such 
                                amounts as may be necessary for the 
                                health, education, or welfare of each 
                                such minor or legally incompetent 
                                person under a plan approved by the 
                                Secretary and the governing body of the 
                                Indian tribe; and
                                    ``(V) the per capita payments are 
                                subject to Federal income taxation for 
                                individuals and Indian tribes withhold 
                                those taxes when those 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 clauses 
                                (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 those 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 that gaming is used only for the 
                                purposes described in subparagraph 
                                (A)(iii);
                                    ``(III) not less than 60 percent of 
                                the net revenues from that 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 14 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 that 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 that gaming 
                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 Improvement Act of 1998; 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 
                that 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 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 Indian 
                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 as required by subsection (b)(3)(A)(iv); 
                        and
                            ``(ii) submit to the Commission a complete 
                        resume of each employee hired and licensed by 
                        the Indian tribe subsequent to the issuance of 
                        a certificate of self-regulation; and
                    ``(B) the Commission may not assess a fee under 
                section 15 on gaming operated by the Indian tribe 
                pursuant to paragraph (1) in excess of 0.25 percent of 
                the net revenue from that class II gaming 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 described in section 6(c) (that is established by the 
Secretary under section 8), 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. 10. 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 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 
                        9(b)(3) for the conduct of class II gaming 
                        activities; and
                            ``(iii) is approved by the Secretary;
                    ``(B) located in a State that permits such gaming 
                for any purpose by any person organization or entity; 
                and
                    ``(C) conducted in conformance with a compact 
                that--
                            ``(i) is in effect; and
                            ``(ii) is--
                                    ``(I) entered into by an Indian 
                                tribe and a State and approved by the 
                                Secretary under paragraph (2); or
                                    ``(II) issued by the Secretary 
                                under paragraph (2).
            ``(2) Compact negotiations; approval.--
                    ``(A) In general.--
                            ``(i) Compact negotiations.--Any Indian 
                        tribe having jurisdiction over the lands upon 
                        which a class III gaming activity is to be 
                        conducted may request the State in which those 
                        lands are located to enter into negotiations 
                        for the purpose of entering into a compact with 
                        that State governing the conduct of class III 
                        gaming activities.
                            ``(ii) Requirements for request for 
                        negotiations.--A request for negotiations under 
                        clause (i) shall be in writing and shall 
                        specify each gaming activity that the Indian 
                        tribe proposes for inclusion in the compact. 
                        Not later than 30 days after receipt of that 
                        written request, the State shall respond to the 
                        Indian tribe.
                            ``(iii) Commencement of compact 
                        negotiations.--Compact negotiations conducted 
                        under this paragraph shall commence not later 
                        than 30 days after the date on which a response 
                        by a State is due to the Indian tribe, and 
                        shall be completed not later than 120 days 
                        after the initiation of compact negotiations, 
                        unless the State and the Indian tribe agree to 
                        a different period of time for the completion 
                        of compact negotiations.
                    ``(B) Negotiations.--
                            ``(i) In general.--The Secretary shall, 
                        upon the request of an Indian tribe described 
                        in subparagraph (A)(i) that has not reached an 
                        agreement with a State concerning a compact 
                        referred to in that subparagraph (or with 
                        respect to an Indian tribe described in clause 
                        (ii)(I)(bb) a compact) during the applicable 
                        period under clause (ii) of this subparagraph, 
                        initiate a mediation process to--
                                    ``(I) conclude a compact referred 
                                to in subparagraph (A)(i); or
                                    ``(II) if necessary, provide for 
                                the issuance of procedures by the 
                                Secretary to govern the conduct of the 
                                gaming referred to in that 
                                subparagraph.
                            ``(ii) Applicable period.--
                                    ``(I) In general.--Subject to 
                                subclause (II), the applicable period 
                                described in this paragraph is--
                                            ``(aa) in the case of an 
                                        Indian tribe that makes a 
                                        request for compact 
                                        negotiations under subparagraph 
                                        (A), the 180-day period 
                                        beginning on the date on which 
                                        that Indian tribe makes the 
                                        request; and
                                            ``(bb) in the case of an 
                                        Indian tribe that makes a 
                                        request to renew a compact to 
                                        govern class III gaming 
                                        activity on Indian lands of 
                                        that Indian tribe within the 
                                        State that the Indian tribe 
                                        entered into prior to the date 
                                        of enactment of the Indian 
                                        Gaming Regulatory Improvement 
                                        Act of 1998, during the 60-day 
                                        period beginning on the date of 
                                        that request.
                                    ``(II) Extension.--An Indian tribe 
                                and a State may agree to extend an 
                                applicable period under this paragraph 
                                beyond the applicable termination date 
                                specified in item (aa) or (bb) of 
                                subclause (I).
                            ``(iii) Mediation.--
                                    ``(I) In general.--The Secretary 
                                shall initiate mediation to conclude a 
                                compact governing the conduct of class 
                                III gaming activities on Indian lands 
                                upon a showing by an Indian tribe that, 
                                within the applicable period specified 
                                in clause (ii), a State has failed--
                                            ``(aa) to respond to a 
                                        request by an Indian tribe for 
                                        negotiations under this 
                                        subparagraph; or
                                            ``(bb) to negotiate in good 
                                        faith.
                                    ``(II) Effect of declining 
                                negotiations.--The Secretary shall 
                                initiate mediation immediately after a 
                                State declines to enter into 
                                negotiations under this subparagraph, 
                                without regard to whether the otherwise 
                                applicable period specified in clause 
                                (ii) has expired.
                                    ``(III) Copy of request.--An Indian 
                                tribe that requests mediation under 
                                this clause shall provide the State 
                                that is the subject of the mediation 
                                request a copy of the mediation request 
                                submitted to the Secretary.
                                    ``(IV) Panel.--The Secretary, in 
                                consultation with the Indian tribes and 
                                States, shall establish a list of 
                                independent mediators, that the 
                                Secretary, in consultation with the 
                                Indian tribes and the States, shall 
                                periodically update.
                                    ``(V) Notification by state.--Not 
                                later than 10 days after an Indian 
                                tribe makes a request to the Secretary 
                                for mediation under subclause (I), the 
                                State that is the subject of the 
                                mediation request shall notify the 
                                Secretary whether the State elects to 
                                participate in the mediation process. 
                                If the State elects to participate in 
                                the mediation, the mediation shall be 
                                conducted in accordance with subclause 
                                (VI). If the State declines to 
                                participate in the mediation process, 
                                the Secretary shall issue procedures 
                                under clause (iv).
                                    ``(VI) Mediation process.--
                                            ``(aa) In general.--Not 
                                        later than 20 days after a 
                                        State elects under subclause 
                                        (V) to participate in a 
                                        mediation, the Secretary shall 
                                        submit to the Indian tribe and 
                                        the State the names of 3 
                                        mediators randomly selected by 
                                        the Secretary from the list of 
                                        mediators established under 
                                        subclause (IV).
                                            ``(bb) Selection of 
                                        mediator.--Not later than 10 
                                        days after the Secretary 
                                        submits the mediators referred 
                                        to in item (aa), the Indian 
                                        tribe and the State may elect 
                                        to have the Secretary remove a 
                                        mediator from the mediators 
                                        submitted. If the parties 
                                        referred to in the preceding 
                                        sentences fail to remove 2 
                                        mediators, the Secretary shall 
                                        remove such names as may be 
                                        necessary to result in the 
                                        removal of 2 mediators. The 
                                        remaining mediator shall 
                                        conduct the mediation.
                                            ``(cc) Initial period of 
                                        mediation.--The mediator shall, 
                                        during the 60-day period 
                                        beginning on the date on which 
                                        the mediator is selected under 
                                        item (bb) (or a longer period 
                                        on the agreement of the parties 
                                        referred to in that item for an 
                                        extension of the period) 
                                        attempt to achieve a compact.
                                            ``(dd) Last-best-offer.--If 
                                        by the termination of the 
                                        period specified in item (cc), 
                                        no agreement for concluding a 
                                        compact is achieved by the 
                                        parties to the mediation, each 
                                        such party may, not later than 
                                        10 days after that date, submit 
                                        to the mediator an offer that 
                                        represents the best offer that 
                                        the party intends to make for 
                                        achieving an agreement for 
                                        concluding a compact (referred 
                                        to in this item as a `last-
                                        best-offer'). The mediator 
                                        shall review a last-best-offer 
                                        received under this item not 
                                        later than 30 days after the 
                                        date of submission of the 
                                        offer.
                                            ``(ee) Report by 
                                        mediator.--Not later than the 
                                        date specified for the 
                                        completion of a review of a 
                                        last-best-offer under item 
                                        (dd), or in any case in which 
                                        either party in a mediation 
                                        fails to make such an offer, 
                                        the date that is 10 days after 
                                        the termination of the initial 
                                        period of mediation under item 
                                        (cc), the mediator shall 
                                        prepare and submit to the 
                                        Secretary a report that 
                                        includes the contentions of the 
                                        parties, the conclusions of the 
                                        mediator concerning the 
                                        permissible scope of gaming on 
                                        the Indian lands involved, and 
                                        recommendations for the 
                                        operation and regulation of 
                                        gaming on the Indian lands in 
                                        accordance with this Act.
                                            ``(ff) Final 
                                        determinations.--Not later than 
                                        60 days after receiving a 
                                        report from a mediator under 
                                        item (ee), the Secretary shall 
                                        make a final determination 
                                        concerning the operation and 
                                        regulation of the class III 
                                        gaming that is the subject of 
                                        the mediation.
                            ``(iv) Procedures.--Subject to clause (v), 
                        on the basis of a final determination described 
                        in clause (iii)(VI)(ff), the Secretary shall 
                        issue procedures for the operation and 
                        regulation of the class III gaming described in 
                        that item by the date that is 180 days after 
                        the date specified in clause (iii)(V) or upon 
                        the determination described in clause 
                        (iii)(iv)(ff).
                            ``(v) Prohibition.--No compact negotiated, 
                        or procedures issued, under this subparagraph 
                        shall require that a State undertake any 
                        regulation of gaming on Indian lands unless--
                                    ``(I) the State affirmatively 
                                consents to regulate that gaming; and
                                    ``(II) applicable State laws permit 
                                that regulatory function.
                    ``(C) Mandatory disapproval.--Notwithstanding any 
                other provision of this Act, the Secretary may not 
                approve a compact if the compact requires State 
                regulation of Indian gaming absent the consent of the 
                State or the Indian tribe.
                    ``(D) Effective date of compact of procedures.--Any 
                compact negotiated, or procedures issued, under this 
                subsection shall become effective upon the publication 
                of the compact or procedures in the Federal Register by 
                the Secretary.
                    ``(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 a 
                State associated with the compact, the publication of a 
                compact pursuant to subparagraph (B) shall, for the 
                purposes of this Act, be conclusive evidence that the 
                class III gaming subject to the compact 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) Duties of commission.--Consistent with the 
                requirements of the standards described in section 6(c) 
                (that are established by the Secretary under section 8) 
                and the requirements of section 7, the Commission shall 
                monitor and, if specifically authorized by those 
                standards and section 7, regulate and license class III 
                gaming with respect to any compact that is approved by 
                the Secretary under this subsection and published in 
                the Federal Register.
            ``(3) Provisions of compacts.--
                    ``(A) In general.--A compact negotiated under this 
                subsection may only include provisions relating to--
                            ``(i) the application of the criminal and 
                        civil laws (including regulations) of the 
                        Indian tribe or the State that are directly 
                        related to, and necessary for, the licensing 
                        and regulation of that gaming activity in a 
                        manner consistent with the requirements of the 
                        standards described in section 6(c) (that are 
                        established by the Secretary under section 8) 
                        and section 7;
                            ``(ii) the allocation of criminal and civil 
                        jurisdiction between the State and the Indian 
                        tribe necessary for the enforcement of those 
                        laws (including regulations);
                            ``(iii) the assessment by the State of the 
                        costs associated with those activities in such 
                        amounts as are necessary to defray the costs of 
                        regulating that activity;
                            ``(iv) taxation by the Indian tribe of that 
                        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 that 
                        activity and maintenance of the gaming 
                        facility, including licensing, in a manner 
                        consistent with the requirements of the 
                        standards described in section 6(c) (that are 
                        established by the Secretary under section 8) 
                        and section 7; and
                            ``(vii) any other subject that is directly 
                        related to the operation of gaming activities.
                    ``(B) Statutory construction with respect to 
                assessments; prohibition.--
                            ``(i) Statutory construction.--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.
                            ``(ii) Assessment by states.--A State may 
                        assess the assessments agreed to by an Indian 
                        tribe referred to in clause (i) in a manner 
                        consistent with that clause.
            ``(4) Statutory construction with respect to certain rights 
        of indian tribes.--Nothing in this subsection impairs the right 
        of an Indian tribe to regulate class III gaming on the Indian 
        lands of the Indian tribe concurrently with a State and the 
        Commission, except to the extent that such regulation is 
        inconsistent with, or less stringent than, this Act or any laws 
        (including regulations) made applicable by any compact entered 
        into by the Indian tribe under this subsection that is in 
        effect.
            ``(5) Exemption.--The provisions of section 2 of the Act of 
        January 2, 1951 (commonly referred to as the `Gambling Devices 
        Transportation Act') (64 Stat. 1134, chapter 1194; 15 U.S.C. 
        1175) shall not apply to any class II gaming activity or any 
        gaming activity conducted pursuant to a compact entered into 
        after the date of enactment of this Act, but in no event shall 
        this paragraph be construed as invalidating any exemption from 
        the provisions of such section 2 for any compact entered into 
        prior to the date of enactment of this Act.
    ``(b) Jurisdiction of United States District Court for the District 
of Columbia.--The United States District Court for the District of 
Columbia shall have jurisdiction over any action initiated by the 
Secretary, the Commission, a State, or an Indian tribe to enforce any 
provision of a compact entered into under subsection (a) or to enjoin a 
class III gaming activity located on Indian lands and conducted in 
violation of any compact that is in effect and that was entered into 
under subsection (a).
    ``(c) Approval of Compacts.--
            ``(1) In general.--The Secretary may approve any compact 
        between an Indian tribe and a State governing the conduct of 
        class III gaming on Indian lands of that Indian tribe entered 
        into under subsection (a).
            ``(2) Reasons for disapproval by secretary.--The Secretary 
        may disapprove a compact entered into under subsection (a) only 
if that compact violates any--
                    ``(A) provision of this Act or any regulation 
                promulgated by the Commission pursuant to this Act;
                    ``(B) other provision of Federal law; or
                    ``(C) trust obligation of the United States to 
                Indians.
            ``(3) Effect of failure to act on compact.--If the 
        Secretary fails to approve or disapprove a compact entered into 
        under subsection (a) before the date that is 45 days after the 
        date on which the compact is submitted to the Secretary for 
        approval, the compact shall be considered to have been approved 
        by the Secretary, but only to the extent the compact is 
        consistent with the provisions of this Act and the regulations 
        promulgated by the Commission pursuant to this Act.
            ``(4) Notification.--The Secretary shall publish in the 
        Federal Register notice of any compact that is approved, or 
        considered to have been approved, under this subsection.
    ``(d) Revocation of Ordinance.--
            ``(1) In general.--The governing body of an Indian tribe, 
        in its sole discretion, may adopt an ordinance or resolution 
        revoking any prior ordinance or resolution that authorized 
        class III gaming on the Indian lands of the Indian tribe. That 
        revocation shall render class III gaming illegal on the Indian 
        lands of that Indian tribe.
            ``(2) Publication of revocation.--An Indian tribe shall 
        submit any revocation ordinance or resolution described in 
        paragraph (1) to the Commission. The Commission shall publish 
        that ordinance or resolution in the Federal Register. The 
        revocation provided by that ordinance or resolution shall take 
        effect on the date of that 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 Act on the date on 
                which an ordinance or resolution described in paragraph 
                (1) that revokes authorization for that class III 
                gaming activity is published in the Federal Register 
                may, during the 1-year period beginning on the date on 
                which that revocation, ordinance, or resolution is 
                published under paragraph (2), continue to operate that 
                activity in conformance with an applicable compact 
                entered into under subsection (a) that is in effect; 
                and
                    ``(B) any civil action that arises before, and any 
                crime that is committed before, the termination of that 
                1-year period shall not be affected by that revocation 
                ordinance, or resolution.
    ``(e) Certain Class III Gaming Activities.--
            ``(1) Compacts entered into before the date of enactment of 
        the indian gaming regulatory improvement act of 1998.--Class 
        III gaming activities that are authorized under a compact 
        approved or issued by the Secretary under the authority of this 
        Act prior to the date of enactment of the Indian Gaming 
        Regulatory Improvement Act of 1998 shall, during such period as 
        the compact is in effect, remain lawful for the purposes of 
        this Act, notwithstanding the Indian Gaming Regulatory 
        Improvement Act of 1998 and the amendments made by that Act or 
        any change in State law, other than a change in State law that 
        constitutes a change in the public policy of the State with 
        respect to permitting or prohibiting class III gaming in the 
        State.
            ``(2) Compact entered into after the date of enactment of 
        the indian gaming regulatory improvement act of 1998.--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, other 
        than a change in State law that constitutes a change in the 
        public policy of the State with respect to permitting or 
        prohibiting class III gaming in the State.

``SEC. 11. REVIEW OF CONTRACTS.

    ``(a) Contracts Included.--The Commission shall, in accordance with 
this section, review and approve or disapprove any management contract 
for the operation and management of any gaming activity that an Indian 
tribe may engage in under this Act.
    ``(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 that 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) 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 is submitted to the Commission for approval, the 
        Commission shall approve or disapprove that contract on the 
        merits of the contract.
            ``(2) Extension.--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.
            ``(3) Action.--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.
    ``(e) 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 declare invalid 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.
    ``(f) 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--
            ``(1) specific statutory authority exists;
            ``(2) all necessary approvals for the transfer or 
        conveyance have been obtained; and
            ``(3) the transfer or conveyance is clearly specified in 
        the contract.
    ``(g) 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.
    ``(h) Disapproval of Contracts.--The Commission may not approve a 
management contract or other gaming-related contract if the Commission 
determines that--
            ``(1) any person having a direct financial interest in, or 
        management responsibility for, that contract, and, in the case 
        of a corporation, any individual who serves on the board of 
        directors of that 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 that 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. 12. 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 $25,000 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 that 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 that violation, the degree of culpability, 
                any history of prior violations, ability to pay, and 
                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 10 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 that 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 
                that hearing. Not later than 30 days after the 
                termination of the hearing, the Commission shall render 
                a final decision on the closure.

``SEC. 13. JUDICIAL REVIEW.

    ``A decision made by the Commission pursuant to section 6, 7, 11, 
or 12 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.'';
            (6) by redesignating sections 18 and 19 as sections 14 and 
        15, respectively;
            (7) in section 14, as redesignated--
                    (A) in subsection (a)--
                            (i) by striking paragraphs (3) through (6);
                            (ii) by redesignating paragraph (2) as 
                        paragraph (3);
                            (iii) by striking ``(a)(1) The Commission'' 
                        and inserting the following:
            ``(2) Minimum fees.--The Commission'';
                            (iv) by inserting before paragraph (2) the 
                        following:
    ``(a) Annual Fees.--
            ``(1) Minimum regulatory fees.--In addition to assessing 
        fees pursuant to a schedule established under paragraph (2), 
        the Commission shall require each gaming operation that 
        conducts a class II or class III gaming activity that is 
        regulated by this Act to pay to the Commission, on a quarterly 
        basis, a minimum fee in an amount equal to $250.''; and
                            (v) in paragraph (3), as redesignated, by 
                        striking subparagraphs (B) and (C) and 
                        inserting the following:
                    ``(B) Graduated fee limitation.--
                            ``(i) In general.--The aggregate amount of 
                        fees collected under this paragraph shall not 
                        exceed--
                                    ``(I) $8,000,000 for fiscal year 
                                1999;
                                    ``(II) $9,000,000 for fiscal year 
                                2000; and
                                    ``(III) $11,000,000 for fiscal year 
                                2001, and for each fiscal year 
                                thereafter.
                    ``(C) Factors for consideration.--
                            ``(i) In general.--The aggregate amount of 
                        fees assessed under this section shall be 
                        reasonably related to the costs of services 
                        provided by the Commission to Indian tribes 
                        under this Act (including the cost of issuing 
                        regulations necessary to carry out this Act). 
                        In assessing and collecting fees under this 
                        section, the Commission shall take into account 
                        all of the duties of, and services provided by, 
                        the Commission under this Act.
                            ``(ii) Factors for consideration.--In 
                        determining the amount of fees to be assessed 
                        against class II or class III gaming activities 
                        regulated by this Act, the Commission shall 
                        consider the extent of regulation of gaming 
                        activities by States and Indian tribes and 
                        shall, if appropriate, reduce or eliminate the 
                        fees authorized by this section.
                            ``(iii) Consultation.--In establishing any 
                        schedule of fees under this subsection, the 
                        Commission shall consult with Indian tribes.
            ``(4) Trust fund.--
                    ``(A) Establishment.--There is established in the 
                Treasury of the United States a fund to be known as the 
                Indian Gaming Trust Fund (referred to in this paragraph 
                as the `Trust Fund'), consisting of--
                            ``(i) such amounts as are--
                                    ``(I) transferred to the Trust Fund 
                                under subparagraph (B)(i); or
                                    ``(II) appropriated to the Trust 
                                Fund; and
                            ``(ii) any interest earned on the 
                        investment of amounts in the Trust Fund under 
                        subparagraph (C).
                    ``(B) Transfer of amounts equivalent to fees.--
                            ``(i) In general.--The Secretary of the 
                        Treasury shall transfer to the Trust Fund an 
                        amount equal to the aggregate amount of fees 
                        collected under this subsection.
                            ``(ii) Transfers based on estimates.--The 
                        amounts required to be transferred to the Trust 
                        Fund under clause (i) shall be transferred at 
                        least quarterly from the general fund of the 
Treasury to the Trust Fund on the basis of estimates made by the 
Secretary of the Treasury. Proper adjustment shall be made in amounts 
subsequently transferred to the extent prior estimates were in excess 
of or less than the amounts required to be transferred.
                    ``(C) Investments.--
                            ``(i) In general.--It shall be the duty of 
                        the Secretary of the Treasury to invest such 
                        portion of the Trust Fund as is not, in the 
                        judgment of the Secretary of the Treasury, 
                        required to meet current withdrawals. The 
                        Secretary of the Treasury shall invest the 
                        amounts deposited under subparagraph (A) only 
                        in interest-bearing obligations of the United 
                        States or in obligations guaranteed as to both 
                        principal and interest by the United States.
                            ``(ii) Sale of obligations.--Any obligation 
                        acquired by the Trust Fund, except special 
                        obligations issued exclusively to the Trust 
                        Fund, may be sold by the Secretary of the 
                        Treasury at the market price, and such special 
                        obligations may be redeemed at par plus accrued 
                        interest.
                            ``(iii) Credits to trust fund.--The 
                        interest on, and proceeds from, the sale or 
                        redemption of, any obligations held in the 
                        Trust Fund shall be credited to and form a part 
                        of the Trust Fund.
                    ``(D) Expenditures from trust fund.--
                            ``(i) In general.--Amounts in the Trust 
                        Fund shall be available, as provided in 
                        appropriations Acts, to the Commission for 
                        carrying out the duties of the Commission under 
                        this Act.
                            ``(ii) Withdrawal and transfer of funds.--
                        Upon request of the Commission, the Secretary 
                        of the Treasury shall withdraw amounts from the 
                        Trust Fund and transfer such amounts to the 
                        Commission for use in accordance with clause 
                        (i).
                    ``(E) Limitation on transfers and withdrawals.--
                Except as provided in subparagraph (D)(ii), the 
                Secretary of the Treasury may not transfer or withdraw 
                any amount deposited under subparagraph (A).
            ``(5) Consequences of failure to pay fees.--Failure to pay 
        the fees imposed under the schedule established under paragraph 
        (2) 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) Credit.--To the extent that revenue derived from fees 
        imposed under the schedule established under paragraph (2) are 
        not expended or committed at the close of any fiscal year, 
        those surplus funds shall be credited to each gaming activity 
        on a pro rata basis against the fees imposed under that 
        schedule for the succeeding fiscal year.
            ``(7) Gross revenues.--For purposes of this section, gross 
        revenues shall constitute the annual total amount of money 
        wagered, reduced by--
                    ``(A) any amounts paid out as prizes or paid for 
                prizes awarded; and
                    ``(B) allowance for amortization of capital 
                expenditures for structures.''; and
                    (B) by striking subsection (b) and inserting the 
                following:
    ``(b) Reimbursement of Costs.--
            ``(1) Contents of budget.--For fiscal year 1999, and for 
        each fiscal year thereafter, the budget of the Commission may 
        include a request for appropriations, as authorized by section 
        15, in an amount equal to the sum of--
                    ``(A)(i) for fiscal year 1999, an estimate 
                (determined by the Commission) of the amount of funds 
                to be derived from the fees collected under subsection 
                (a) for that fiscal year; or
                    ``(ii) for each fiscal year thereafter, the amount 
                of funds derived from the fees collected under 
                subsection (a) for the fiscal year preceding the fiscal 
                year for which the appropriation request is made; and
                    ``(B) $1,000,000.
            ``(2) Budget request of the department of the interior.--
        Each request for appropriations made under paragraph (1) 
        shall--
                    ``(A) be subject to the approval of the Secretary; 
                and
                    ``(B) be part of a request made by the Secretary to 
                the President for inclusion in the annual budget 
                request submitted by the President to Congress under 
                section 1105(a) of title 31, United States Code.'';
            (8) in section 15, as redesignated, by striking ``section 
        18'' each place it appears and inserting ``section 14'';
            (9) by striking section 17 and inserting the following:

``SEC. 16. APPLICATION OF INTERNAL REVENUE CODE OF 1986; ACCESS TO 
              INFORMATION BY STATES AND TRIBAL GOVERNMENTS.

    ``(a) Application of the Internal Revenue Code of 1986.--
            ``(1) In general.--The provisions of the Internal Revenue 
        Code of 1986 (including sections 1441, 3402(q), and 6041, and 
        chapter 35 of such Code) concerning the reporting and 
        withholding of taxes with respect to the winnings from gaming 
        or wagering operations shall apply to Indian gaming operations 
        conducted pursuant to this Act, or under a compact entered into 
        under section 10 that is in effect, in the same manner as those 
        provisions apply to State gaming and wagering operations. Any 
        exemptions to States with respect to taxation of those gaming 
        or wagering operations shall be allowed to Indian tribes.
            ``(2) Exemption.--The provisions of section 6050I of the 
        Internal Revenue Code of 1986 shall apply to an Indian gaming 
establishment that is not designated by the Secretary of the Treasury 
as a financial institution pursuant to chapter 53 of title 31, United 
States Code.
            ``(3) Statutory construction.--This subsection shall apply 
        notwithstanding any other provision of law enacted before the 
        date of enactment of this Act unless that other provision of 
        law specifically cites this subsection.
    ``(b) Access to Information by State and Tribal Governments.--
Subject to section 6(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 it has obtained pursuant to such section, 
unless otherwise prohibited by law, in order to enable the State or the 
Indian tribe to carry out its responsibilities under this Act or any 
compact approved by the Secretary.

``SEC. 17. GAMING PROSCRIBED ON LANDS ACQUIRED IN TRUST AFTER THE DATE 
              OF ENACTMENT OF THIS ACT.

    ``(a) In General.--Except as provided in subsection (b), gaming 
regulated by this Act shall not be conducted on lands acquired by the 
Secretary in trust for the benefit of an Indian tribe after the date of 
enactment of this Act, unless--
            ``(1) those lands are located within or contiguous to the 
        boundaries of the reservation of the Indian tribe on the date 
        of enactment of this Act; or
            ``(2) the Indian tribe has no reservation on the date of 
        enactment of this Act and those lands are located in the State 
        of Oklahoma and--
                    ``(A) are within the boundaries of the former 
                reservation of the Indian tribe, as defined by the 
                Secretary; or
                    ``(B) are contiguous to other land held in trust or 
                restricted status by the United States for the Indian 
                tribe in the State of Oklahoma.
    ``(b) Exemption.--Subsection (a) shall not apply to--
            ``(1) any lands involved in the trust petition of the St. 
        Croix Chippewa Indians of Wisconsin that is the subject of the 
        action filed in the United States District Court for the 
        District of Columbia entitled St. Croix Chippewa Indians of 
        Wisconsin v. United States, Civ. No. 86-2278; or
            ``(2) the interests of the Miccosukee Tribe of Indians of 
        Florida in approximately 25 contiguous acres of land, more or 
        less, in Dade County, Florida, located within 1 mile of the 
        intersection of State road numbered 27 (also known as Krome 
        Avenue) and the Tamiami Trail; or
            ``(3) where the use of such lands for gaming purposes is 
        provided for in a tribal-state compact described in section 
        10(a)(1)(C)(ii)(I) or a tribal-state agreement specifically 
        providing for the use of such lands for gaming purposes.''.
            (10) by striking section 20;
            (11) by redesignating sections 21 through 23 as sections 18 
        through 20, respectively; and
            (12) by redesignating section 24 as section 21.

SEC. 3. LIMITATION ON LOBBYING.

    Section 104 of the Indian Self-Determination and Education 
Assistance Act (25 U.S.C. 450i) is amended by inserting after 
subsection (j) the following:
    ``(k) Lobbying Limitation.--Notwithstanding subsection (j), except 
as otherwise provided in sections 205 and 207 of title 18, United 
States Code, a former Federal officer or employee of the United States 
shall not act as an agent or attorney for, or appear on behalf of, a 
client in connection with any specific matter or decision involving the 
Indian Gaming Regulatory Act (25 U.S.C. 2701 et seq.) in any matter in 
which the officer or employee of the United States had personal and 
substantial involvement while an officer of the United States.''.

SEC. 4. DEFINITION OF FINANCIAL INSTITUTIONS.

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

SEC. 5. 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(12) 
of the Indian Gaming Regulatory Act''.
    (b) Title 18.--Title 18, United States Code, is amended--
            (1) in section 1166--
                    (A) in subsection (c)(2), 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 
                10(c) of the Indian Gaming Regulatory Act that is in 
                effect or pursuant to procedures issued by the 
                Secretary of the Interior under section 10(a)(2)(B)(iv) 
                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 10(c) of the Indian Gaming 
                Regulatory Act or pursuant to procedures issued by the 
                Secretary of the Interior under section 10(a)(2)(B)(iv) 
                of such Act,'';
            (2) in section 1167, by striking ``pursuant to an ordinance 
        or resolution approved by the National Indian Gaming 
        Commission'' and inserting ``pursuant to an ordinance or 
        resolution that meets the applicable requirements under the 
        Indian Gaming Regulatory Act (25 U.S.C. 2701 et seq.)''; and
            (3) in section 1168, by striking ``pursuant to an ordinance 
        or resolution approved by the National Indian Gaming 
        Commission'' and inserting ``pursuant to an ordinance or 
        resolution that meets the applicable requirements under the 
        Indian Gaming Regulatory Act (25 U.S.C. 2701 et seq.)''.
    (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(11) 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(10) of such 
                Act''; and
            (2) in section 3704(b), by striking ``section 4(4) of the 
        Indian Gaming Regulatory Act'' and inserting ``section 4(10) of 
        the Indian Gaming Regulatory Act''.
                                 <all>