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






                                                       Calendar No. 739
108th CONGRESS
  2d Session
                                S. 1529

                          [Report No. 108-380]

    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

                           September 28, 2004

              Reported by Mr. Campbell, with an amendment
 [Strike out all after the enacting clause and insert the part printed 
                               in italic]

_______________________________________________________________________

                                 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,

<DELETED>SECTION 1. SHORT TITLE.</DELETED>

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

<DELETED> SEC. 2. PAYMENT AND ADMINISTRATION OF GAMING FEES.</DELETED>

<DELETED>    (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:</DELETED>
                <DELETED>    ``(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.''.</DELETED>
<DELETED>    (b) National Indian Gaming Commission.--Section 5 of the 
Indian Gaming Regulatory Act (25 U.S.C. 2704) is amended--</DELETED>
        <DELETED>    (1) by striking subsection (c) and inserting the 
        following:</DELETED>
<DELETED>    ``(c) Vacancies.--</DELETED>
        <DELETED>    ``(1) In general.--A vacancy on the Commission 
        shall be filled in the same manner as the original 
        appointment.</DELETED>
        <DELETED>    ``(2) Successors.--Unless a member of the 
        Commission is removed for cause under subsection (b)(6), the 
        member may--</DELETED>
                <DELETED>    ``(A) be reappointed; and</DELETED>
                <DELETED>    ``(B) serve after the expiration of the 
                term of the member until a successor is appointed.''; 
                and</DELETED>
        <DELETED>    (2) in subsection (e), in the last sentence, by 
        inserting ``or disability'' after ``in the absence''.</DELETED>
<DELETED>    (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:</DELETED>
<DELETED>    ``(c) Delegation.--The Chairman may delegate to an 
individual Commissioner any of the authorities described in subsection 
(a).</DELETED>
<DELETED>    ``(d) Applicable Authority.--In carrying out any function 
under this section, a Commissioner serving in the capacity of the 
Chairman shall be governed by--</DELETED>
        <DELETED>    ``(1) such general policies as are formally 
        adopted by the Commission; and</DELETED>
        <DELETED>    ``(2) such regulatory decisions, findings, and 
        determinations as are made by the Commission.''.</DELETED>
<DELETED>    (d) Powers of Commission.--Section 7 of the Indian Gaming 
Regulatory Act (25 U.S.C. 2706) is amended--</DELETED>
        <DELETED>    (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'';</DELETED>
        <DELETED>    (2) by redesignating subsection (c) as subsection 
        (d);</DELETED>
        <DELETED>    (3) by inserting after subsection (b) the 
        following:</DELETED>
<DELETED>    ``(c) Strategic Plan.--</DELETED>
        <DELETED>    ``(1) In general.--The Commission shall develop a 
        strategic plan for use in carrying out activities of the 
        Commission.</DELETED>
        <DELETED>    ``(2) Requirements.--The strategic plan shall 
        include--</DELETED>
                <DELETED>    ``(A) a comprehensive mission statement 
                describing the major functions and operations of the 
                Commission;</DELETED>
                <DELETED>    ``(B) a description of the goals and 
                objectives of the Commission;</DELETED>
                <DELETED>    ``(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;</DELETED>
                <DELETED>    ``(D) a performance plan for achievement 
                of those goals and objectives that is consistent with--
                </DELETED>
                        <DELETED>    ``(i) other components of the 
                        strategic plan; and</DELETED>
                        <DELETED>    ``(ii) section 1115 of title 31, 
                        United States Code;</DELETED>
                <DELETED>    ``(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</DELETED>
                <DELETED>    ``(F) a description of the program 
                evaluations used in establishing or revising those 
                goals and objectives, including a schedule for future 
                program evaluations.</DELETED>
        <DELETED>    ``(3) Biennial plan.--</DELETED>
                <DELETED>    ``(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.</DELETED>
                <DELETED>    ``(B) Updates and revisions.--The 
                strategic plan shall be updated and revised 
                biennially.''; and</DELETED>
        <DELETED>    (4) in subsection (d) (as redesignated by 
        paragraph (2))--</DELETED>
                <DELETED>    (A) in paragraph (3), by striking ``and'' 
                at the end;</DELETED>
                <DELETED>    (B) by redesignating paragraph (4) as 
                paragraph (5); and</DELETED>
                <DELETED>    (C) by inserting after paragraph (3) the 
                following:</DELETED>
        <DELETED>    ``(4) the strategic plan for activities of the 
        Commission described in subsection (c); and''.</DELETED>
<DELETED>    (e) Commission Staffing.--Section 8 of the Indian Gaming 
Regulatory Act (25 U.S.C. 2707) is amended--</DELETED>
        <DELETED>    (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'';</DELETED>
        <DELETED>    (2) in subsection (b)--</DELETED>
                <DELETED>    (A) by striking ``(b) The Chairman'' and 
                inserting the following:</DELETED>
<DELETED>    ``(b) Staff.--</DELETED>
        <DELETED>    ``(1) In general.--The Chairman''; and</DELETED>
                <DELETED>    (B) by striking the last sentence and 
                inserting the following:</DELETED>
        <DELETED>    ``(2) Compensation.--</DELETED>
                <DELETED>    ``(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.</DELETED>
                <DELETED>    ``(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</DELETED>
        <DELETED>    (3) by striking subsection (c) and inserting the 
        following:</DELETED>
<DELETED>    ``(c) Temporary Services.--</DELETED>
        <DELETED>    ``(1) In general.--The Chairman may procure 
        temporary and intermittent services under section 3109 of title 
        5, United States Code.</DELETED>
        <DELETED>    ``(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.''.</DELETED>
<DELETED>    (f) Tribal Gaming Ordinances.--Section 11 of the Indian 
Gaming Regulatory Act (25 U.S.C. 2710) is amended--</DELETED>
        <DELETED>    (1) in subsection (b)(2)(F), by striking clause 
        (i) and inserting the following:</DELETED>
                <DELETED>    ``(i) ensures that--</DELETED>
                        <DELETED>    ``(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</DELETED>
                        <DELETED>    ``(II) oversight of primary 
                        management officials and key employees is 
                        conducted on an ongoing basis; and''; 
                        and</DELETED>
        <DELETED>    (2) in subsection (d)--</DELETED>
                <DELETED>    (A) in paragraph (4)--</DELETED>
                        <DELETED>    (i) by striking ``(4) Except'' and 
                        inserting the following:</DELETED>
        <DELETED>    ``(4) Revenue sharing.--</DELETED>
                <DELETED>    ``(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.</DELETED>
                <DELETED>    ``(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--</DELETED>
                        <DELETED>    ``(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;</DELETED>
                        <DELETED>    ``(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</DELETED>
                        <DELETED>    ``(iii) in the case of 
                        apportionment with a State--</DELETED>
                                <DELETED>    ``(I) the total amount of 
                                net revenues--</DELETED>
                                        <DELETED>    ``(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</DELETED>
                                        <DELETED>    ``(bb) is in 
                                        accordance with regulations 
                                        promulgated by the Secretary 
                                        under subparagraph (C); 
                                        and</DELETED>
                                <DELETED>    ``(II) a substantial 
                                economic benefit is rendered by the 
                                State to the Indian tribe.</DELETED>
                <DELETED>    ``(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).'';</DELETED>
                <DELETED>    (B) in paragraph (7)(B)(vii), by inserting 
                ``not later than 90 days after notification is made'' 
                after ``the Secretary shall prescribe''; and</DELETED>
                <DELETED>    (C) by adding at the end the 
                following:</DELETED>
        <DELETED>    ``(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--</DELETED>
                <DELETED>    ``(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</DELETED>
                <DELETED>    ``(B) a new compact has not been agreed 
                on.''.</DELETED>
<DELETED>    (g) Management Contracts.--Section 12 of the Indian Gaming 
Regulatory Act (25 U.S.C. 2711) is amended--</DELETED>
        <DELETED>    (1) by striking the section heading and all that 
        follows through ``Subject'' in subsection (a)(1) and inserting 
        the following:</DELETED>

<DELETED>``SEC. 12. MANAGEMENT CONTRACTS.</DELETED>

<DELETED>    ``(a) Class II Gaming and Class III Gaming Activities; 
Information on Operators.--</DELETED>
        <DELETED>    ``(1) Gaming activities.--Subject''; and</DELETED>
        <DELETED>    (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),''.</DELETED>
<DELETED>    (h) Commission Funding.--Section 18 of the Indian Gaming 
Regulatory Act (25 U.S.C. 2717) is amended--</DELETED>
        <DELETED>    (1) in subsection (a)--</DELETED>
                <DELETED>    (A) by striking paragraphs (1) through (3) 
                and inserting the following:</DELETED>
        <DELETED>    ``(1) Schedule of fees.--</DELETED>
                <DELETED>    ``(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.</DELETED>
                <DELETED>    ``(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)--</DELETED>
                        <DELETED>    ``(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</DELETED>
                        <DELETED>    ``(ii) a flat fee levied on the 
                        gross revenues from each operation that 
                        conducts a class II gaming or class III gaming 
                        activity.</DELETED>
                <DELETED>    ``(C) Total amount.--The total amount of 
                all fees imposed during any fiscal year under the 
                schedule established under subparagraph (A) shall not 
                exceed--</DELETED>
                        <DELETED>    ``(i) $10,000,000 for each of 
                        fiscal years 2004 and 2005;</DELETED>
                        <DELETED>    ``(ii) $11,000,000 for each of 
                        fiscal years 2006 and 2007; and</DELETED>
                        <DELETED>    ``(iii) $12,000,000 for each of 
                        fiscal years 2008 and 2009.''; and</DELETED>
                <DELETED>    (B) by redesignating paragraphs (4) 
                through (6) as paragraphs (2) through (4), 
                respectively;</DELETED>
        <DELETED>    (2) by redesignating subsection (b) as subsection 
        (d);</DELETED>
        <DELETED>    (3) in paragraph (2) of subsection (d) (as 
        redesignated by paragraph (2)), by striking ``section 19 of 
        this Act'' and inserting ``section 28''; and</DELETED>
        <DELETED>    (4) by inserting after subsection (a) the 
        following:</DELETED>
<DELETED>    ``(b) Fee Procedures.--</DELETED>
        <DELETED>    ``(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.</DELETED>
        <DELETED>    ``(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.</DELETED>
        <DELETED>    ``(3) Regulations.--The Commission shall 
        promulgate such regulations as are necessary to carry out this 
        subsection.</DELETED>
<DELETED>    ``(c) Fee Reduction Program.--</DELETED>
        <DELETED>    ``(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--</DELETED>
                <DELETED>    ``(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;</DELETED>
                <DELETED>    ``(B) the extent and quality of self-
                regulating activities covered by this Act that are 
                conducted by an Indian tribe; and</DELETED>
                <DELETED>    ``(C) other factors determined by the 
                Commission, including--</DELETED>
                        <DELETED>    ``(i) the unique nature of tribal 
                        gaming as compared with commercial gaming, 
                        other governmental gaming, and charitable 
                        gaming;</DELETED>
                        <DELETED>    ``(ii) the broad variations in the 
                        nature, scale, and size of tribal gaming 
                        activity;</DELETED>
                        <DELETED>    ``(iii) the inherent sovereign 
                        rights of Indian tribes with respect to 
                        regulating the affairs of Indian 
                        tribes;</DELETED>
                        <DELETED>    ``(iv) the findings and purposes 
                        under sections 2 and 3;</DELETED>
                        <DELETED>    ``(v) the amount of interest or 
                        investment income derived from the Indian 
                        gaming regulation accounts; and</DELETED>
                        <DELETED>    ``(vi) any other matter that is 
                        consistent with the purposes under section 
                        3.</DELETED>
        <DELETED>    ``(2) Rulemaking.--The Commission shall promulgate 
        such regulations as are necessary to carry out this 
        subsection.''.</DELETED>
<DELETED>    (i) Additional Amendments.--The Indian Gaming Regulatory 
Act is amended--</DELETED>
        <DELETED>    (1) by striking section 19 (25 U.S.C. 
        2718);</DELETED>
        <DELETED>    (2) by redesignating sections 20 through 24 (25 
        U.S.C. 2719 through 2723) as sections 23 through 27, 
        respectively;</DELETED>
        <DELETED>    (3) by inserting after section 18 (25 U.S.C. 2717) 
        the following:</DELETED>

<DELETED>``SEC. 19. INDIAN GAMING REGULATION ACCOUNTS.</DELETED>

<DELETED>    ``(a) In General.--All fees and civil forfeitures 
collected by the Commission in accordance with this Act shall--
</DELETED>
        <DELETED>    ``(1) be maintained in separate, segregated 
        accounts; and</DELETED>
        <DELETED>    ``(2) be expended only for purposes described in 
        this Act.</DELETED>
<DELETED>    ``(b) Investments.--</DELETED>
        <DELETED>    ``(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.</DELETED>
        <DELETED>    ``(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.</DELETED>
<DELETED>    ``(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.</DELETED>
<DELETED>    ``(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.</DELETED>

<DELETED>``SEC. 20. MINIMUM STANDARDS.</DELETED>

<DELETED>    ``(a) Class I Gaming.--Notwithstanding any other provision 
of law, class I gaming on Indian land--</DELETED>
        <DELETED>    ``(1) shall remain within the exclusive 
        jurisdiction of the Indian tribe having jurisdiction over the 
        Indian land; and</DELETED>
        <DELETED>    ``(2) shall not be subject to this Act.</DELETED>
<DELETED>    ``(b) Class II Gaming.--</DELETED>
        <DELETED>    ``(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.</DELETED>
        <DELETED>    ``(2) Conduct of class ii gaming.--Any class II 
        gaming activity shall be conducted in accordance with--
        </DELETED>
                <DELETED>    ``(A) section 11; and</DELETED>
                <DELETED>    ``(B) regulations promulgated under 
                subsection (d).</DELETED>
<DELETED>    ``(c) Class III Gaming.--</DELETED>
        <DELETED>    ``(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.</DELETED>
        <DELETED>    ``(2) Conduct of class iii gaming.--Any class III 
        gaming operated by an Indian tribe under this Act shall be 
        conducted in accordance with--</DELETED>
                <DELETED>    ``(A) section 11; and</DELETED>
                <DELETED>    ``(B) regulations promulgated under 
                subsection (d).</DELETED>
<DELETED>    ``(d) Rulemaking.--</DELETED>
        <DELETED>    ``(1) In general.--</DELETED>
                <DELETED>    ``(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--</DELETED>
                        <DELETED>    ``(i) the monitoring and 
                        regulation of tribal gaming;</DELETED>
                        <DELETED>    ``(ii) the establishment and 
                        regulation of internal control systems; 
                        and</DELETED>
                        <DELETED>    ``(iii) the conduct of background 
                        investigation.</DELETED>
                <DELETED>    ``(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.</DELETED>
        <DELETED>    ``(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.</DELETED>
<DELETED>    ``(e) Elimination of Existing Regulations.--</DELETED>
        <DELETED>    ``(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.</DELETED>
        <DELETED>    ``(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--</DELETED>
                <DELETED>    ``(A) be considered to satisfy the 
                requirements of paragraph (1); and</DELETED>
                <DELETED>    ``(B) remain in full force and 
                effect.</DELETED>

<DELETED>``SEC. 21. USE OF NATIONAL INDIAN GAMING COMMISSION CIVIL 
              FINES.</DELETED>

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

<DELETED>``SEC. 22. TRIBAL CONSULTATION.</DELETED>

<DELETED>    ``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</DELETED>
        <DELETED>    (4) by inserting after section 27 (as redesignated 
        by paragraph (2)) the following:</DELETED>

<DELETED>``SEC. 28. AUTHORIZATION OF APPROPRIATIONS.</DELETED>

<DELETED>    ``(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).</DELETED>
<DELETED>    ``(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.''.</DELETED>

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Indian Gaming Regulatory Act 
Amendments of 2004''.

 SEC. 2. ADMINISTRATION AND FEES.

    (a) Definitions.--Section 4(7) of the Indian Gaming Regulatory Act 
(25 U.S.C. 2703(7)) is amended--
            (1) in subparagraph (E), by striking ``of the Indian Gaming 
        Regulatory Act (25 U.S.C. 2710(d)(3))''; and
            (2) 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 et seq.), 
                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) by redesignating subsection (c) as subsection (e);
            (2) 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 general means by which 
                those goals and objectives are to be achieved, 
                including a description of the operational processes, 
                skills, and technology, and the human resources, 
                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.
    ``(d) Registration of Technological Aids.--
            ``(1) In general.--The Commission shall require the 
        registration of--
                    ``(A) any electronic aid, computer, or other 
                technological aid described in section 4(7)(G) that is 
                intended for use on Indian land; and
                    ``(B) any manufacturer, seller, dealer, buyer, 
                lessor, or any other person that is engaged in the 
                business of repairing, reconditioning, or reprogramming 
                such technological aids.
            ``(2) Registration of manufacturers and dealers.--A 
        manufacturer, seller, dealer, buyer, lessor, or any other 
        person that intends to be engaged in the business of repairing, 
        reconditioning, or reprogramming any electronic aid, computer, 
        or other technological aid described in section 4(7)(G) that is 
intended for use on Indian land in a calendar year shall register with 
the Commission not later than November 30 of the preceding calendar 
year.
            ``(3) Numbering and records for technological aids.--
                    ``(A) Manufacturers.--A manufacturer of an 
                electronic, computer, or other technological aid 
                described in section 4(7)(G) shall--
                            ``(i) sequentially number each 
                        technological aid; and
                            ``(ii) permanently affix to the 
                        technological aid, so as to be clearly visible, 
                        the serial number, legal and trade name of the 
                        manufacturer, and date of manufacture of the 
                        technological aid.
                    ``(B) Persons required to register.--
                            ``(i) Numbering.--A person required to 
                        register under paragraph (2) shall--
                                    ``(I) sequentially number each 
                                electronic aid, computer, or other 
                                technological aid within the physical 
                                possession of the person, if a 
                                manufacturer's serial number has not 
                                been previously affixed in accordance 
                                with paragraph (A); and
                                    ``(II) permanently affix to the 
                                technological aid, so as to be clearly 
                                visible, the serial number, legal name 
                                and trade name of the registrant, and 
                                date on which the serial number is 
                                affixed.
                            ``(ii) Records.--A person required to 
                        register under paragraph (2) for any calendar 
                        year shall, on and after the date of 
                        registration or the first day of that year 
                        (whichever occurs later), maintain a record by 
                        calendar month, for all periods thereafter in 
                        the year, of each electronic aid, computer, or 
                        other technological aid within the possession 
                        of the registrant that discloses--
                                    ``(I) the information required by 
                                subparagraph (A) and clause (i); and
                                    ``(II) on transfer of possession of 
                                the technological aid, the legal and 
                                trade name of the person to which 
                                possession is transferred and the date 
                                of the transfer.
            ``(4) Civil penalties.--A person that fails to comply with 
        this subsection shall be subject to the penalties prescribed in 
        section 14 as if the person were a management contractor 
        engaged in gaming.''; and
            (3) in subsection (e) (as redesignated by paragraph (1))--
                    (A) in paragraph (3), by striking ``the Act; and'' 
                and inserting ``this Act;'';
                    (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 provisions 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) by striking paragraph (4) and inserting the 
                following:
            ``(4) Revenue apportionment.--
                    ``(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 any political 
                subdivision of a State authority to impose any tax, 
                fee, charge, or other assessment on an Indian tribe or 
on any other person or entity authorized by an Indian tribe to engage 
in a class III activity.
                    ``(B) Negotiations.--No State may refuse to enter 
                into the negotiations described in paragraph (3)(A) 
                based on the lack of authority in a State, or political 
                subdivision of a State, to impose such a tax, fee, 
                charge, or other assessment.
                    ``(C) Apportionment of revenues.--The Secretary may 
                not approve any Tribal-State compact or other agreement 
                that includes an apportionment of revenues with a State 
                or local government unless--
                            ``(i) in the case of apportionment with 
                        local governments, the total amount of net 
                        revenues exceeds the amounts necessary to meet 
                        the requirements of subsection (b)(2)(B)(i), 
                        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
                            ``(ii) 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 
                                        (iii) of subsection (b)(2)(B) 
                                        and clause (i) of this 
                                        subparagraph, if applicable; 
                                        and
                                            ``(bb) is in accordance 
                                        with regulations promulgated by 
                                        the Secretary under 
                                        subparagraph (D); and
                                    ``(II) a substantial economic 
                                benefit is rendered by the State to the 
                                Indian tribe.
                    ``(D) Regulations.--Not later than 18 months after 
                the date of enactment of this subparagraph, 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 (C).
                    ``(E) No effect on existing agreements.--Nothing in 
                this paragraph affects any existing Tribal-State 
                compact or other agreement providing for an 
                apportionment of revenues with a State, local 
                government, or other Indian tribe.'';
                    (B) in paragraph (7)(B)(vii), by inserting ``not 
                later than 180 days after notification is made'' after 
                ``the Secretary shall prescribe''; and
                    (C) by striking paragraph (9) and inserting the 
                following:
            ``(9) Extension of negotiating timeframe.--Class III gaming 
        activities conducted by an Indian tribe on Indian land shall be 
        lawful under this Act for up to 180 days after expiration of a 
        Tribal-State compact if the Indian tribe signatory to the 
        compact certifies to the Secretary that--
                    ``(A) 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)--
                    (A) in paragraph (1)--
                            (i) 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),''; and
                            (ii) by adjusting the margins of 
                        subparagraphs (A), (B), and (C) appropriately;
                    (B) in paragraph (2), by striking ``(2) Any 
                person'' and inserting the following:
            ``(2) Requirement to respond.--Any person''; and
                    (C) in paragraph (3), by striking ``(3) For 
                purposes'' and inserting the following:
            ``(3) References to management contracts.--For purposes''.
    (h) Commission Funding.--Section 18 of the Indian Gaming Regulatory 
Act (25 U.S.C. 2717) is amended--
            (1) by striking the section heading and all that follows 
        through paragraph (3) of subsection (a) and inserting the 
        following:

``SEC. 18. COMMISSION FUNDING.

    ``(a) Fees.--
            ``(1) Fee schedule.--
                    ``(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.--Notwithstanding any other 
                provision of law, the total amount of all fees imposed 
                during any fiscal year under the schedule established 
                under subparagraph (A) shall not exceed--
                            ``(i) $11,500,000 for fiscal year 2005;
                            ``(ii) $12,000,000 for each of fiscal years 
                        2006 and 2007; and
                            ``(iii) $13,000,000 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 (c);
            (3) 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.''; 
        and
            (4) in paragraph (2) of subsection (c) (as redesignated by 
        paragraph (2)), by striking ``section 19'' and inserting 
        ``section 24''.
    (i) Tribal Consultation.--The Indian Gaming Regulatory Act is 
amended by striking section 19 (25 U.S.C. 2718) and inserting the 
following:

``SEC. 19. TRIBAL CONSULTATION.

    ``In carrying out this Act (including the use of negotiated 
rulemaking with tribal governments and the use of tribal advisory 
committees in developing regulatory policies, standards, and 
definitions), the Secretary, 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.''.
    (j) Authorization of Appropriations.--The Indian Regulatory Gaming 
Act is amended--
            (1) in section 23 (102 Stat. 2487), by striking the section 
        heading and all that follows through ``Chapter 53'' and 
        inserting the following:

``SEC. 23. CRIMINAL PENALTIES.

    ``(a) In General.--Chapter 53'';
            (2) in section 24 (102 Stat. 2488), by striking the section 
        heading and all that follows through ``The table'' and 
        inserting the following:
    ``(b) Conforming Amendment.--The table''; and
            (3) by adding at the end the following:

``SEC. 24. 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.''.
                                                       Calendar No. 739

108th CONGRESS

  2d Session

                                S. 1529

                          [Report No. 108-380]

_______________________________________________________________________

                                 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.

_______________________________________________________________________

                           September 28, 2004

                       Reported with an amendment