[Congressional Bills 106th Congress]
[From the U.S. Government Publishing Office]
[S. 399 Introduced in Senate (IS)]







106th CONGRESS
  1st Session
                                 S. 399

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


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                           February 10, 1999

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

_______________________________________________________________________

                                 A BILL


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

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

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Indian Gaming Regulatory Improvement 
Act of 1999''.

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:

``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 of Chairman.
``Sec. 7. Powers of Commission.
``Sec. 8. Commission staffing.
``Sec. 9. Commission--access to information.
``Sec. 10. Minimum standards.
``Sec. 11. Rulemaking.
``Sec. 12. Tribal gaming ordinances.
``Sec. 13. Management contracts.
``Sec. 14. Civil penalties.
``Sec. 15. Judicial review.
``Sec. 16. Subpoena and deposition authority.
``Sec. 17. Investigative powers.
``Sec. 18. Commission funding.
``Sec. 19. Authorization of appropriations.
``Sec. 20. Gaming on lands acquired after October 17, 1988.
``Sec. 21. Dissemination of information.
``Sec. 22. Severability.
``Sec. 23. Criminal penalties.
``Sec. 24. Conforming amendment.'';
            (2) by striking sections 2 and 3 and inserting the 
        following:

``SEC. 2. CONGRESSIONAL FINDINGS.

    ``Congress finds that--
            ``(1) Indian tribes are--
                    ``(A) engaged in the operation of gaming activities 
                on Indian lands as a means of generating tribal 
                governmental revenue; and
                    ``(B) licensing 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 criminal law and 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 of the United States vests Congress 
        with the powers to regulate commerce with foreign nations, and 
        among the several States, and with the Indian tribes, and this 
        Act is enacted in the exercise of those powers.

``SEC. 3. PURPOSES.

    ``The purposes of this Act are as follows:
            ``(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.'';
            (3) in section 4--
                    (A) by striking paragraphs (1) through (6) and 
                inserting the following:
            ``(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.'';
                    (B) by redesignating paragraphs (7) and (8) as 
                paragraphs (5) and (6), respectively;
                    (C) in paragraph (5), as redesignated by 
                subparagraph (B) of this paragraph, by striking 
                ``(5)(A) The term'' and inserting ``(5) Class ii 
                gaming.--(A) The term'';
                    (D) in paragraph (6), as redesignated by 
                subparagraph (B) of this paragraph, by striking ``(6) 
                The term'' and inserting ``(6) Class iii gaming.--The 
                term''; and
                    (E) by adding after paragraph (6), as redesignated 
                by subparagraph (B) of this paragraph, the following:
            ``(7) Commission.--The term `Commission' means the National 
        Indian Gaming 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 
                Indian affairs or policy.'';
            (5) in section 6(a)(4), by striking ``provided in sections 
        11(d)(9) and 12'' and inserting ``provided in sections 12(d)(9) 
        and 13'';
            (6) by striking section 13;
            (7) by redesignating section 12 as section 13;
            (8) by redesignating section 11 as section 12;
            (9) by striking section 10 and inserting the following:

``SEC. 10. MINIMUM STANDARDS.

    ``(a) Class II Gaming.--As of the date of enactment of the Indian 
Gaming Regulatory Improvement Act of 1999, an Indian tribe shall retain 
the rights of that Indian tribe, with respect to class II gaming and in 
a manner that meets or exceeds the minimum Federal standards 
established under section 11, to--
            ``(1) monitor and regulate that gaming;
            ``(2) conduct background investigations; and
            ``(3) establish and regulate internal control systems.
    ``(b) Class III Gaming Under a Compact.--With respect to class III 
gaming conducted under a compact entered into under this Act, an Indian 
tribe or State (or both), as provided in such a compact or a related 
tribal ordinance or resolution shall, in a manner that meets or exceeds 
the minimum Federal standards established by the Commission under 
section 11--
            ``(1) monitor and regulate that gaming;
            ``(2) conduct background investigations; and
            ``(3) establish and regulate internal control systems.'';
            (10) by inserting after section 10 the following:

``SEC. 11. 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 1999, the Commission shall, in accordance with the 
rulemaking procedures under chapter 5 of title 5, United States Code, 
promulgate minimum Federal standards relating to background 
investigations, internal control systems, and licensing standards 
described in section 10. In promulgating the regulations under this 
section, the Commission shall consult with the Attorney General, Indian 
tribes, and appropriate States.
    ``(b) Factors for Consideration.--In promulgating the minimum 
standards under this section, the Commission may give appropriate 
consideration to existing industry standards at the time of the 
development of the standards and, in addition to considering those 
existing standards, the Commission shall 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 nature, scale, and size 
        of tribal gaming activity;
            ``(3) the inherent sovereign rights of Indian tribes with 
        respect to regulating the affairs of Indian tribes;
            ``(4) the findings and purposes under sections 2 and 3;
            ``(5) the effectiveness and efficiency of a national 
        licensing program for vendors or management contractors; and
            ``(6) any other matter that is consistent with the purposes 
        under section 3.'';
            (11) in section 12, as redesignated by paragraph (8) of 
        this section--
                    (A) by striking subsection (a) and inserting the 
                following:
    ``(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) in subsection (b)--
                            (i) in paragraph (1)--
                                    (I) in subparagraph (A), by 
                                striking ``and'' at the end;
                                    (II) in subparagraph (B), by 
                                striking the period at the end and 
                                inserting ``; and''; and
                                    (III) by striking the flush 
                                language following subparagraph (B) and 
                                inserting the following:
                    ``(C) such Indian gaming meets or exceeds the 
                requirements of this section and the standards 
                established by the Commission under section 11.'';
                            (ii) in paragraph (2)--
                                    (I) in subparagraph (D), by 
                                striking ``$25,000'' and inserting 
                                ``$100,000'';
                                    (II) in subparagraph (E), by 
                                striking ``and'' at the end; and
                                    (III) in subparagraph (F)--
                                            (aa) by striking subclause 
                                        (I) of clause (ii) and 
                                        inserting the following:
                            ``(I) a tribal license for primary 
                        management officials and key employees of the 
                        gaming enterprise, issued in accordance with 
                        the standards established by the Commission 
                        under section 11 with prompt notification to 
                        the Commission of the issuance of such 
                        licenses;''; and
                                            (bb) in subclause (III) of 
                                        clause (ii), by striking the 
                                        period and inserting ``; and''; 
                                        and
                            (iii) by adding at the end the following:
                    ``(G) a separate license will be issued by the 
                Indian tribe for each place, facility, or location on 
                Indian lands at which class II gaming is conducted;'';
                    (C) in subsection (c), by striking paragraph (3) 
                and inserting the following:
            ``(3) Any Indian tribe that operates, directly or with a 
        management contract, a class III gaming activity may petition 
        the Commission for a fee reduction if the Commission determines 
        that the Indian tribe has--
                    ``(A) 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 1999;
                    ``(B) implemented standards that meet or exceed 
                minimum Federal standards established under section 11;
                    ``(C) otherwise complied with the provisions of 
                this Act; and
                    ``(D) paid all fees and assessments that the Indian 
                tribe is required to pay to the Commission under this 
                Act.''; and
                    (D) in subsection (d)--
                            (i) in paragraph (2)(B)(ii), by striking 
                        ``section 12(e)(1)(D)'' and inserting ``section 
                        13(e)(1)(D)''; and
                            (ii) in paragraph (9), by striking 
                        ``section 12'' and inserting ``section 13'';
            (12) in section 13, as redesignated by paragraph (7) of 
        this section, by striking ``section 11(b)(1)'' and inserting 
        ``section 12(b)(1)'';
            (13) in section 14--
                    (A) in subsection (a)--
                            (i) in paragraph (1), by striking ``section 
                        11 or 12'' and inserting ``section 12 or 13'';
                            (ii) in paragraph (3), by striking 
                        ``section 11 or 12'' and inserting ``section 12 
                        or 13''; and
                    (B) in subsection (b)(1), by striking ``section 11 
                or 12'' and inserting ``section 12 or 13'';
            (14) in section 15, by striking ``sections 11, 12, 13, and 
        14'' and inserting ``sections 12, 13, and 14''; and
            (15) in section 18--
                    (A) in subsection (a)--
                            (i) by striking ``(a)(1) The'' and all that 
                        follows through the end of paragraph (3) and 
                        inserting the following:
    ``(a) In General.--
            ``(1) Establishment of schedule of fees.--Except as 
        provided in paragraph (2)(C), the Commission shall establish a 
        schedule of fees to be paid to the Commission annually by each 
        gaming operation that conducts a class II or class III gaming 
        activity that is regulated by this Act.
            ``(2) Rate of fees.--
                    ``(A) In general.--The rate of fees under the 
                schedule established under paragraph (1) imposed on the 
                gross revenues from each activity regulated under this 
                Act shall be as follows:
                            ``(i) No more than 2.5 percent of the first 
                        $1,500,000 of those gross revenues.
                            ``(ii) No more than 5 percent of amounts in 
                        excess of the first $1,500,000 of those gross 
                        revenues.
                    ``(B) Total amount.--The total amount of all fees 
                imposed during any fiscal year under the schedule 
                established under paragraph (1) shall not exceed 
                $8,000,000.
                    ``(C) Mississippi band of choctaw.--Nothing in this 
                section shall be interpreted to permit the assessment 
                of fees against the Mississippi Band of Choctaw for any 
                portion of the 3-year period beginning on the date that 
                is 2 years before the date of enactment of the Indian 
                Gaming Regulatory Improvement Act of 1999.
            ``(3) Commission authorization.--By a vote of not less than 
        2 members of the Commission, the Commission shall adopt the 
        rate of fees authorized by this section. Those fees shall be 
        payable to the Commission on a quarterly basis.
                    ``(A) 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 the duties of, 
                and services provided by, the Commission under this 
                Act.
                    ``(B) Factors for consideration.--In making a 
                determination of the amount of fees to be assessed for 
                any class II or class III gaming activity, the 
                Commission shall provide for a reduction in the amount 
                of fees that otherwise would be collected on the basis 
                of the following factors:
                            ``(i) The extent of regulation of the 
                        gaming activity by a State or Indian tribe (or 
                        both).
                            ``(ii) The issuance of a certificate of 
                        self-regulation (if any) for that gaming 
                        activity.
                    ``(C) Consultation.--In establishing a schedule of 
                fees under this subsection, the Commission shall 
                consult with Indian tribes.'';
                            (ii) by redesignating paragraphs (4) 
                        through (6) as paragraphs (5) through (7), 
                        respectively; and
                            (iii) by inserting after paragraph (3) the 
                        following:
            ``(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 not 
                        less frequently than 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 to the Commission, as 
                        provided in appropriations Acts, 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).''; and
                    (B) in subsection (d), by striking ``section 
                11(d)(3)'' and inserting ``section 12(d)(3)''.

SEC. 3. CONFORMING AMENDMENTS.

    (a) Title 10.--Section 2323a(e)(1) of title 10, United States Code, 
is amended by striking ``section 4(4) of the Indian Gaming Regulatory 
Act (102 Stat. 2468; 25 U.S.C. 2703(4))'' and inserting ``section 4(10) 
of the Indian Gaming Regulatory Act''.
    (b) 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''.
    (c) 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>