[Congressional Bills 108th Congress]
[From the U.S. Government Publishing Office]
[S. 1529 Introduced in Senate (IS)]

  1st Session
                                S. 1529

    To amend the Indian Gaming Regulatory Act to include provisions 
  relating to the payment and administration of gaming fees, and for 
                            other purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                July 31 (legislative day, July 21), 2003

   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 to include provisions 
  relating to the payment and administration of gaming fees, and for 
                            other purposes.

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

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Indian Gaming Regulatory Act 
Amendments of 2003''.

 SEC. 2. PAYMENT AND ADMINISTRATION OF GAMING FEES.

    (a) Definitions.--Section 4(7) of the Indian Gaming Regulatory Act 
(25 U.S.C. 2703(7)) is amended by adding at the end the following:
                    ``(G) Technological aids.--Notwithstanding any 
                other provision of law, sections 1 through 7 of the Act 
                of January 2, 1951 (commonly known as the `Gambling 
                Devices Transportation Act') (15 U.S.C. 1171 through 
                1177) shall not apply to any gaming described in 
                subparagraph (A)(i) for which an electronic aid, 
                computer, or other technological aid is used in 
                connection with the gaming.''.
    (b) National Indian Gaming Commission.--Section 5 of the Indian 
Gaming Regulatory Act (25 U.S.C. 2704) is amended--
            (1) by striking subsection (c) and inserting the following:
    ``(c) Vacancies.--
            ``(1) In general.--A vacancy on the Commission shall be 
        filled in the same manner as the original appointment.
            ``(2) Successors.--Unless a member of the Commission is 
        removed for cause under subsection (b)(6), the member may--
                    ``(A) be reappointed; and
                    ``(B) serve after the expiration of the term of the 
                member until a successor is appointed.''; and
            (2) in subsection (e), in the last sentence, by inserting 
        ``or disability'' after ``in the absence''.
    (c) Powers of Chairman.--Section 6 of the Indian Gaming Regulatory 
Act (25 U.S.C. 2705) is amended by adding at the end the following:
    ``(c) Delegation.--The Chairman may delegate to an individual 
Commissioner any of the authorities described in subsection (a).
    ``(d) Applicable Authority.--In carrying out any function under 
this section, a Commissioner serving in the capacity of the Chairman 
shall be governed by--
            ``(1) such general policies as are formally adopted by the 
        Commission; and
            ``(2) such regulatory decisions, findings, and 
        determinations as are made by the Commission.''.
    (d) Powers of Commission.--Section 7 of the Indian Gaming 
Regulatory Act (25 U.S.C. 2706) is amended--
            (1) in paragraphs (1), (2), and (4) of subsection (b), by 
        striking ``class II gaming'' each place it appears and 
        inserting ``class II gaming and class III gaming'';
            (2) by redesignating subsection (c) as subsection (d);
            (3) by inserting after subsection (b) the following:
    ``(c) Strategic Plan.--
            ``(1) In general.--The Commission shall develop a strategic 
        plan for use in carrying out activities of the Commission.
            ``(2) Requirements.--The strategic plan shall include--
                    ``(A) a comprehensive mission statement describing 
                the major functions and operations of the Commission;
                    ``(B) a description of the goals and objectives of 
                the Commission;
                    ``(C) a description of the means by which those 
                goals and objectives are to be achieved, including a 
                description of the operational processes, skills and 
                technology, and the human, capital, information, and 
                other resources required to achieve those goals and 
                objectives;
                    ``(D) a performance plan for achievement of those 
                goals and objectives that is consistent with--
                            ``(i) other components of the strategic 
                        plan; and
                            ``(ii) section 1115 of title 31, United 
                        States Code;
                    ``(E) an identification of the key factors that are 
                external to, or beyond the control of, the Commission 
                that could significantly affect the achievement of 
                those goals and objectives; and
                    ``(F) a description of the program evaluations used 
                in establishing or revising those goals and objectives, 
                including a schedule for future program evaluations.
            ``(3) Biennial plan.--
                    ``(A) Period covered.--The strategic plan shall 
                cover a period of not less than 5 fiscal years 
                beginning with the fiscal year in which the plan is 
                submitted.
                    ``(B) Updates and revisions.--The strategic plan 
                shall be updated and revised biennially.''; and
            (4) in subsection (d) (as redesignated by paragraph (2))--
                    (A) in paragraph (3), by striking ``and'' at the 
                end;
                    (B) by redesignating paragraph (4) as paragraph 
                (5); and
                    (C) by inserting after paragraph (3) the following:
            ``(4) the strategic plan for activities of the Commission 
        described in subsection (c); and''.
    (e) Commission Staffing.--Section 8 of the Indian Gaming Regulatory 
Act (25 U.S.C. 2707) is amended--
            (1) in subsection (a), by striking ``GS-18 of the General 
        Schedule under section 5332'' and inserting ``level IV of the 
        Executive Schedule under section 5318'';
            (2) in subsection (b)--
                    (A) by striking ``(b) The Chairman'' and inserting 
                the following:
    ``(b) Staff.--
            ``(1) In general.--The Chairman''; and
                    (B) by striking the last sentence and inserting the 
                following:
            ``(2) Compensation.--
                    ``(A) In general.--Staff appointed under paragraph 
                (1) shall be paid without regard to the provision of 
                chapter 51 and subchapter III of chapter 53, of title 
                5, United States Code, relating to General Schedule pay 
                rates.
                    ``(B) Maximum rate of pay.--The rate of pay for an 
                individual appointed under paragraph (1) shall not 
                exceed the rate payable for level IV of the Executive 
                Schedule under section 5315 of title 5, United States 
                Code.''; and
            (3) by striking subsection (c) and inserting the following:
    ``(c) Temporary Services.--
            ``(1) In general.--The Chairman may procure temporary and 
        intermittent services under section 3109 of title 5, United 
        States Code.
            ``(2) Maximum rate of pay.--The rate of pay for an 
        individual for service described in paragraph (1) shall not 
        exceed the daily equivalent of the maximum rate payable for 
        level IV of the Executive Schedule under section 5318 of title 
        5, United States Code.''.
    (f) Tribal Gaming Ordinances.--Section 11 of the Indian Gaming 
Regulatory Act (25 U.S.C. 2710) is amended--
            (1) in subsection (b)(2)(F), by striking clause (i) and 
        inserting the following:
                    ``(i) ensures that--
                            ``(I) background investigations are 
                        conducted on the tribal gaming commissioners, 
                        key tribal gaming commission employees, and 
                        primary management officials and key employees 
                        of the gaming enterprise; and
                            ``(II) oversight of primary management 
                        officials and key employees is conducted on an 
                        ongoing basis; and''; and
            (2) in subsection (d)--
                    (A) in paragraph (4)--
                            (i) by striking ``(4) Except'' and 
                        inserting the following:
            ``(4) Revenue sharing.--
                    ``(A) In general.--Except for any assessments that 
                may be agreed to under paragraph (3)(C)(iii), nothing 
                in this section confers on a State or political 
                subdivision of a State authority to impose any tax, 
                fee, charge, or other assessment on any Indian tribe or 
                any other person or entity authorized by an Indian 
                tribe to engage in a class III activity. No State may 
                refuse to enter into the negotiations described in 
                paragraph (3)(A) based on the lack of authority in the 
                State or a political subdivision of the State to impose 
                such a tax, fee, charge, or other assessment.
                    ``(B) Apportionment of revenues.--The Secretary may 
                not approve any Tribal-State compact or other agreement 
                that includes an apportionment of net revenues with a 
                State, local government, or other Indian tribes 
                unless--
                            ``(i) in the case of apportionment with 
                        other Indian tribes, the net revenues are not 
                        distributable by the other Indian tribes to 
                        members of the Indian tribes on a per capita 
                        basis;
                            ``(ii) in the case of apportionment with 
                        local governments, the total amount of net 
                        revenues exceeds the amounts necessary to meet 
                        the requirements of clauses (i) and (ii) of 
                        subsection (b)(2)(B), but only to the extent 
                        that the excess revenues reflect the actual 
                        costs incurred by affected local governments as 
                        a result of the operation of gaming activities; 
                        or
                            ``(iii) in the case of apportionment with a 
                        State--
                                    ``(I) the total amount of net 
                                revenues--
                                            ``(aa) exceeds the amounts 
                                        necessary to meet the 
                                        requirements of clauses (i) and 
                                        (ii) of subsection (b)(2)(B) 
                                        and clause (ii) of this 
                                        subparagraph, if applicable; 
                                        and
                                            ``(bb) is in accordance 
                                        with regulations promulgated by 
                                        the Secretary under 
                                        subparagraph (C); and
                                    ``(II) a substantial economic 
                                benefit is rendered by the State to the 
                                Indian tribe.
                    ``(C) Regulations.--Not later than 90 days after 
                the date of enactment of this paragraph, the Secretary 
                shall promulgate regulations to provide guidance to 
                Indian tribes and States on the scope of allowable 
                assessments negotiated under paragraph (3)(C)(iii) and 
                the apportionment of revenues negotiated in accordance 
                with subparagraph (B).'';
                    (B) in paragraph (7)(B)(vii), by inserting ``not 
                later than 90 days after notification is made'' after 
                ``the Secretary shall prescribe''; and
                    (C) by adding at the end the following:
            ``(10) Extension of term of tribal-state compact.--Any 
        Tribal-State compact approved by the Secretary in accordance 
with paragraph (8) shall remain in effect for up to 180 days after 
expiration of the Tribal-State compact if--
                    ``(A) the Indian tribe certifies to the Secretary 
                that the Indian tribe requested a new compact not later 
                than 90 days before expiration of the compact; and
                    ``(B) a new compact has not been agreed on.''.
    (g) Management Contracts.--Section 12 of the Indian Gaming 
Regulatory Act (25 U.S.C. 2711) is amended--
            (1) by striking the section heading and all that follows 
        through ``Subject'' in subsection (a)(1) and inserting the 
        following:

``SEC. 12. MANAGEMENT CONTRACTS.

    ``(a) Class II Gaming and Class III Gaming Activities; Information 
on Operators.--
            ``(1) Gaming activities.--Subject''; and
            (2) in subsection (a)(1), by striking ``class II gaming 
        activity that the Indian tribe may engage in under section 
        11(b)(1) of this Act,'' and inserting ``class II gaming 
        activity in which the Indian tribe may engage under section 
        11(b)(1), or a class III gaming activity in which the Indian 
        tribe may engage under section 11(d),''.
    (h) Commission Funding.--Section 18 of the Indian Gaming Regulatory 
Act (25 U.S.C. 2717) is amended--
            (1) in subsection (a)--
                    (A) by striking paragraphs (1) through (3) and 
                inserting the following:
            ``(1) Schedule of fees.--
                    ``(A) In general.--Except as provided in this 
                section, the Commission shall establish a schedule of 
                fees to be paid annually to the Commission, on a 
                quarterly basis, by each gaming operation that conducts 
                a class II gaming or class III gaming activity that is 
                regulated, in whole or in part, by this Act.
                    ``(B) Rates.--The rate of fees under the schedule 
                established under subparagraph (A) that are imposed on 
                the gross revenues from each operation that conducts a 
                class II gaming or class III gaming activity described 
                in that paragraph shall be (as determined by the 
                Commission)--
                            ``(i) a progressive rate structure levied 
                        on the gross revenues in excess of $1,500,000 
                        from each operation that conducts a class II 
                        gaming or class III gaming activity; or
                            ``(ii) a flat fee levied on the gross 
                        revenues from each operation that conducts a 
                        class II gaming or class III gaming activity.
                    ``(C) Total amount.--The total amount of all fees 
                imposed during any fiscal year under the schedule 
                established under subparagraph (A) shall not exceed--
                            ``(i) $10,000,000 for each of fiscal years 
                        2004 and 2005;
                            ``(ii) $11,000,000 for each of fiscal years 
                        2006 and 2007; and
                            ``(iii) $12,000,000 for each of fiscal 
                        years 2008 and 2009.''; and
                    (B) by redesignating paragraphs (4) through (6) as 
                paragraphs (2) through (4), respectively;
            (2) by redesignating subsection (b) as subsection (d);
            (3) in paragraph (2) of subsection (d) (as redesignated by 
        paragraph (2)), by striking ``section 19 of this Act'' and 
        inserting ``section 28''; and
            (4) by inserting after subsection (a) the following:
    ``(b) Fee Procedures.--
            ``(1) In general.--By a vote of not less than 2 members of 
        the Commission, the Commission shall adopt the schedule of fees 
        provided for under this section.
            ``(2) Fees assessed.--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.
            ``(3) Regulations.--The Commission shall promulgate such 
        regulations as are necessary to carry out this subsection.
    ``(c) Fee Reduction Program.--
            ``(1) In general.--In making a determination of the amount 
        of fees to be assessed for any class II gaming or class III 
        gaming activity under the schedule of fees under this section, 
        the Commission may provide for a reduction in the amount of 
        fees that otherwise would be collected on the basis of--
                    ``(A) the extent and quality of regulation of the 
                gaming activity provided by a State or Indian tribe, or 
                both, in accordance with an approved State-tribal 
                compact;
                    ``(B) the extent and quality of self-regulating 
                activities covered by this Act that are conducted by an 
                Indian tribe; and
                    ``(C) other factors determined by the Commission, 
                including--
                            ``(i) the unique nature of tribal gaming as 
                        compared with commercial gaming, other 
                        governmental gaming, and charitable gaming;
                            ``(ii) the broad variations in the nature, 
                        scale, and size of tribal gaming activity;
                            ``(iii) the inherent sovereign rights of 
                        Indian tribes with respect to regulating the 
                        affairs of Indian tribes;
                            ``(iv) the findings and purposes under 
                        sections 2 and 3;
                            ``(v) the amount of interest or investment 
                        income derived from the Indian gaming 
                        regulation accounts; and
                            ``(vi) any other matter that is consistent 
                        with the purposes under section 3.
            ``(2) Rulemaking.--The Commission shall promulgate such 
        regulations as are necessary to carry out this subsection.''.
    (i) Additional Amendments.--The Indian Gaming Regulatory Act is 
amended--
            (1) by striking section 19 (25 U.S.C. 2718);
            (2) by redesignating sections 20 through 24 (25 U.S.C. 2719 
        through 2723) as sections 23 through 27, respectively;
            (3) by inserting after section 18 (25 U.S.C. 2717) the 
        following:

``SEC. 19. INDIAN GAMING REGULATION ACCOUNTS.

    ``(a) In General.--All fees and civil forfeitures collected by the 
Commission in accordance with this Act shall--
            ``(1) be maintained in separate, segregated accounts; and
            ``(2) be expended only for purposes described in this Act.
    ``(b) Investments.--
            ``(1) In general.--The Commission shall invest such portion 
        of the accounts maintained under subsection (a) as are not, in 
        the judgment of the Commission, required to meet immediate 
        expenses.
            ``(2) Types of investments.--Investments may be made only 
        in interest-bearing obligations of the United States guaranteed 
        as to both principal and interest by the United States.
    ``(c) Sale of Obligations.--Any obligation acquired with funds in 
an account maintained under subsection (a)(1) (except special 
obligations issued exclusively to those accounts, which may be redeemed 
at par plus accrued interest) may be sold by the Commission at the 
market price.
    ``(d) Credits to Indian Gaming Regulatory Accounts.--The interest 
on, and proceeds from, the sale or redemption of any obligation held in 
an account maintained under subsection (a)(1) shall be credited to and 
form a part of the account.

``SEC. 20. MINIMUM STANDARDS.

    ``(a) Class I Gaming.--Notwithstanding any other provision of law, 
class I gaming on Indian land--
            ``(1) shall remain within the exclusive jurisdiction of the 
        Indian tribe having jurisdiction over the Indian land; and
            ``(2) shall not be subject to this Act.
    ``(b) Class II Gaming.--
            ``(1) In general.--Subject to paragraph (2), an Indian 
        tribe shall retain primary jurisdiction over regulation of 
        class II gaming activities conducted by the Indian tribe.
            ``(2) Conduct of class ii gaming.--Any class II gaming 
        activity shall be conducted in accordance with--
                    ``(A) section 11; and
                    ``(B) regulations promulgated under subsection (d).
    ``(c) Class III Gaming.--
            ``(1) In general.--Subject to paragraph (2), an Indian 
        tribe shall retain primary jurisdiction over regulation of 
        class III gaming activities conducted by the Indian tribe.
            ``(2) Conduct of class iii gaming.--Any class III gaming 
        operated by an Indian tribe under this Act shall be conducted 
        in accordance with--
                    ``(A) section 11; and
                    ``(B) regulations promulgated under subsection (d).
    ``(d) Rulemaking.--
            ``(1) In general.--
                    ``(A) Promulgation.--Not later than 180 days after 
                the date of enactment of the Indian Gaming Regulatory 
                Act Amendments of 2003, the Commission shall develop 
                procedures under subchapter III of chapter 5 of title 
                5, United States Code, to negotiate and promulgate 
                regulations relating to--
                            ``(i) the monitoring and regulation of 
                        tribal gaming;
                            ``(ii) the establishment and regulation of 
                        internal control systems; and
                            ``(iii) the conduct of background 
                        investigation.
                    ``(B) Publication of proposed regulations.--Not 
                later than 1 year after the date of enactment of the 
                Indian Gaming Regulatory Act Amendments of 2003, the 
                Commission shall publish in the Federal Register 
                proposed regulations developed by a negotiated 
                rulemaking committee in accordance with this section.
            ``(2) Committee.--A negotiated rulemaking committee 
        established in accordance with section 565 of title 5, United 
        States Code, to carry out this subsection shall be composed 
        only of Federal and Indian tribal government representatives, a 
        majority of whom shall be nominated by and be representative of 
        Indian tribes that conduct gaming in accordance with this Act.
    ``(e) Elimination of Existing Regulations.--
            ``(1) In general.--Except as provided in paragraph (2), as 
        of the date that is 1 year after the date of enactment of the 
        Indian Gaming Regulatory Act Amendments of 2003, regulations 
        establishing minimum internal control standards promulgated by 
        the Commission that are in effect as of the date of enactment 
        of the Indian Gaming Regulatory Act Amendments of 2003 shall 
        have no force or effect.
            ``(2) Exception for affirmation of existing regulations.--
        Notwithstanding paragraph (1), if, before the date of enactment 
        of the Indian Gaming Regulatory Act Amendments of 2003, the 
        Commission certifies to the Secretary of the Interior that the 
        Commission has promulgated regulations that establish minimum 
        internal control standards that meet the requirements of 
        subsection (d)(1)(A) and were developed in consultation with 
        affected Indian tribes, the regulations shall--
                    ``(A) be considered to satisfy the requirements of 
                paragraph (1); and
                    ``(B) remain in full force and effect.

``SEC. 21. USE OF NATIONAL INDIAN GAMING COMMISSION CIVIL FINES.

    ``(a) Account.--Amounts collected by the Commission under section 
14 shall--
            ``(1) be deposited in a separate Indian gaming regulation 
        account established under section 19(d)(1)(A); and
            ``(2) be available to the Commission, as provided for in 
        advance in Acts of appropriation, for use in carrying out this 
        Act.
    ``(b) Use of Funds.--
            ``(1) In general.--The Commission may provide grants and 
        technical assistance to Indian tribes using funds secured by 
        the Commission under section 14.
            ``(2) Uses.--A grant or financial assistance provided under 
        paragraph (1) may be used only--
                    ``(A) to provide technical training and other 
                assistance to an Indian tribe to strengthen the 
                regulatory integrity of Indian gaming;
                    ``(B) to provide assistance to an Indian tribe to 
                assess the feasibility of conducting nongaming economic 
                development activities on Indian land;
                    ``(C) to provide assistance to an Indian tribe to 
                devise and implement programs and treatment services 
                for individuals diagnosed as problem gamblers; or
                    ``(D) to provide to an Indian tribe 1 or more other 
                forms of assistance that are not inconsistent with this 
                Act.
    ``(c) Source of Funds.--Amounts used to carry out subsection (b) 
may be derived only from funds--
            ``(1) collected by the Commission under section 14; and
            ``(2) authorized for use in advance by an Act of 
        appropriation.
    ``(d) Regulations.--The Commission may promulgate such regulations 
as are necessary to carry out this section.

``SEC. 22. TRIBAL CONSULTATION.

    ``In carrying out this Act, the Secretary of the Interior, 
Secretary of the Treasury, and Chairman of the Commission shall involve 
and consult with Indian tribes to the maximum extent practicable, as 
appropriate, in a manner that is consistent with the Federal trust and 
the government-to-government relationship that exists between Indian 
tribes and the Federal Government.''; and
            (4) by inserting after section 27 (as redesignated by 
        paragraph (2)) the following:

``SEC. 28. AUTHORIZATION OF APPROPRIATIONS.

    ``(a) In General.--Subject to section 18, there is authorized to be 
appropriated to carry out this Act, for fiscal year 1998 and each 
fiscal year thereafter, an amount equal to the amount of funds derived 
from the assessments authorized by section 18(a).
    ``(b) Additional Amounts.--Notwithstanding section 18, in addition 
to amounts authorized to be appropriated by subsection (a), there are 
authorized to be appropriated $2,000,000 to fund the operation of the 
Commission for fiscal year 1998 and each fiscal year thereafter.''.
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