[Congressional Record Volume 140, Number 81 (Thursday, June 23, 1994)]
[Senate]
[Page S]
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[Congressional Record: June 23, 1994]
From the Congressional Record Online via GPO Access [wais.access.gpo.gov]

 
          STATEMENTS ON INTRODUCED BILLS AND JOINT RESOLUTIONS

      By Mr. INOUYE (for himself and Mr. McCain):
  S. 2230. A bill to amend the Indian Gaming Regulatory Act; to the 
Committee on Indian Affairs.


          indian gaming regulatory act amendments act of 1994

  Mr. INOUYE. Mr. President, I rise today, with my colleague and vice-
chairman of the Committee on Indian Affairs, Senator John McCain, to 
introduce a bill that is long awaited by many, and which represents the 
cumulation of hundreds of hours of negotiations over the past year 
between the leadership of State and tribal governments concerning a 
matter that has engendered more controversy than any other matter with 
which the committee has been charged in recent years.
  This bill proposes to amend the provision of the Indian Gaming 
Regulatory Act of 1988, and is thus, accurately titled, ``The Indian 
Gaming Regulatory Act Amendments Act of 1994.''
  Mr. President, we began the journey which leads us here today in 
1985, when the committee undertook its first attempts to develop a 
regulatory framework for the conduct of gaming on Indian lands.
  In May 1987, the Supreme Court issued its now famous ruling in the 
case of Cabazon Bank of Mission Indians versus California.
  In that case, the Supreme Court held that civil regulatory gaming 
laws of the State of California, a Public Law 280 State, did not apply 
on Indian lands.
  When the court's ruling in Cabazon was handed down, the pressure upon 
the Congress to enact legislation to regulate Indian gaming was 
intense.
  By October 1988, we had a gaming bill signed into law, and almost 
from the very outset, the pressure to amend the act began to mount.
  That pressure reached a feverish pitch in March last year when 
several Federal district court rulings prompted the Governors of 
several States to call upon the President to address what they viewed 
as a crisis.
  Up until that time, I had continually expressed my reluctance to open 
up the act for amendment.
  After all, although the gaming measure was enacted into law in 1988, 
it wasn't until April 1991 that the nominations to the Commission was 
completed, and the Commission could begin the work of promulgating 
regulations.
  Final regulations were published in December 1992, so when the call 
came--3 months alter--to amend the act, my first reaction was that such 
action was premature.
  I thought that we should give the parties time to operate under the 
act before we rushed to a judgment that the act wasn't working.
  However, the States were not alone in their desire to see the act 
amended.
  While the Federal courts were issuing rulings with regard to the 
scope of gaming that concerned the States, tribal leaders were equally 
forceful in their argument that the act must be amended to address the 
10th and 11th amendment defenses that the States were successfully 
asserting to defeat Federal court jurisdiction.
  Because of these rulings, tribes in several areas of the country 
found themselves thwarted in securing compacts to govern the conduct of 
class III gaming.
  Nonetheless, as it is the charge of Members of this body to respond 
to the fervent requests of those who are elected to serve the people, 
in March of last year, John McCain and I called upon the Governors and 
the attorneys general of the 50 States, and the leadership of the 
Indian nations, to engage in discussions that might yield a consensus 
on how to proceed with amendments to the act.
  In the hopes of initiating this process, we met with tribal 
government leaders on March 19, 1993, and we asked them to consider 
sitting down with the governors and the attorneys general.
  That same day, representatives of the National Association of 
Attorneys General, meeting here in Washington, advised us that they 
would welcome an opportunity for such dialog.
  And later that same day, several governors, representing the National 
Governors Association, discussed the matter and they, too, informed us 
of their support for such a process.
  Following our separate meetings with the tribal leaders, attorneys 
general, and the Governors in May of last year, a historic meeting of 
all of the principals was held here in the Senate, a little less than a 
year ago, on July 2, 1993.
  The substantive concerns of all parties were openly expressed at that 
meeting, and the State and tribal government leaders agreed to proceed 
with further discussions.
  Today, a substantial portion of the measure we introduce reflects the 
work of State and tribal representatives that has been produced over 
countless hours and days of negotiations that began in earnest the week 
of July 12, 1993.
  Mr. President, some of my colleagues know that toward the end of the 
negotiations process, the parties began to feel that they had reached 
an impasse in their discussions.
  However, Mr. President, when each side submitted their proposals to 
the committee a little over a month ago, we found those proposals to be 
very similar in many important respects.
  However, I want to make clear our understanding that throughout the 
negotiations process, the parties maintained that there would be no 
agreement until there was agreement on all matters.
  But when full agreement could not be reached, we felt that it was 
incumbent upon us to continue the work that the States and tribal 
governments had begun.
  And so today, Mr. President, we submit this measure for the 
consideration of our colleagues in the Senate and in the House of 
Representatives, based upon our belief that it faithfully and 
straightforwardly attempts to address the principal concerns that were 
expressed by the State and tribal government leaders at the outset of 
this process.
  For instance, when we had our first meeting with the governors of the 
several States representing the National Governors Association on May 
18, it was made known to us that there were some States that did not 
wish to engage in the process that the Indian Gaming Regulatory Act 
established to regulate the conduct of class III gaming on Indian 
lands, and so we knew, almost at the outset, that we would have to 
formulate an alternative procedure that would involve the Federal 
Government, in lieu of the role a State would have assumed.
  And, if the National Government was going to assume responsibility 
for the regulation of class III gaming, we knew that we would have to 
create a comprehensive regulatory capability in the Federal Government.
  From the beginning, we learned that all parties shared a desire to 
reduce the amount of litigation that the act appeared to be spawning, 
and that we would need to provide a greater degree of certainty to the 
compacting parties in the tribal-State compact negotiation process--a 
matter which came to be known as the scope of gaming issue.
  And so, Mr. President, the bill that Senator McCain and I introduce 
today proposes the following:
  The establishment of clear Federal standards for the conduct of class 
II and class III gaming on Indian lands;
  An expanded Federal presence in the regulation of class III gaming on 
Indian lands;
  A process that enables a State to exercise the option of entering 
into a tribal-State compact to oversee class III gaming on Indian 
lands, or of opting out of compact negotiations;
  A means of which tribal and State compacting parties can seek 
assistance in clarifying the scope of gaming that is to be the subject 
of tribal State compact negotiations, thereby affording the parties the 
certainty they seek;
  A process that enables a tribal government to enter into a compact 
with the Secretary of the Interior, when a State opts out of the 
compacting procedure;
  A comprehensive licensing system to regulate the privilege of doing 
business in Indian country, similar to those systems employed in the 
States of Nevada and New Jersey;
  A procedure for assuring the consideration of the interests of all 
parties when land is taken into trust for gaming purposes; and
  A mechanism for assessing the costs of Federal regulation.
  Nonetheless, Mr. President, we would be the first to acknowledge that 
we have not been able to address every matter that we brought to us for 
resolution.
  In the final days before introduction of this measure, we received 
scores of phone calls from various representatives of the four 
Settlement Act States.
  Conflicting positions on the part of Settlement Act States left us in 
the unenviable position of knowing that any language we put in the bill 
would in one way or another be offensive to one of those States.
  Some want the bill to be silent on Settlement Acts--others want 
specific provisions on Settlement Acts.
  One State has said that if any one of the Settlement Acts is 
addressed, then they all must be addressed.
  It has become clear that we cannot satisfy one State without doing so 
at the expense of the desires of another State.
  In addition, we have heard from the tribal governments in those 
States and have been advised that compact negotiations hold the 
potential for resolving the need for amendments to the act.
  Accordingly, we have opted not to take any action at this time of 
introduction of this measure with regard to the Settlement Acts, in the 
hope that the Settlement Act States can come to some agreement on how 
they wish us to proceed.
  Another unresolved area which we have not attempted to address at 
this juncture is the concern that has been expressed by at least one 
member of the Committee on Indian Affairs concerning the accountability 
of tribal governments to their citizens in the arena of gaming.
  Respecting the sovereign nature of Indian tribal governments, it is 
my hope that they might come forward with a proposal that responds to 
this concern, rather than have a federally fashioned solution.
  It is thus, within this context, that we ask our colleagues to view 
this measure not as a panacea to all problems, but as a foundation upon 
which additional solutions might be built.
  Such is the nature of a highly controversial matter that gaming has 
become in this country.
  The proliferation of State lotteries and commercial gaming in States 
across the Nation define the trend, of which Indian gaming represents 
but a small percentage.
  Indian gaming is not the engine that will drive the national debate 
as to whether gaming is an acceptable means of funding essential 
Government functions.
  What we do know is that Indian gaming has brought to historically 
impoverished Indian communities across the country, something that the 
Federal Government has never been able to provide in a meaningful way--
  Job opportunities in communities where unemployment ranges from a low 
of 37 percent to a high of 95 percent;
  Clinics and schools and day-care facilities, and long-term care for 
those in need;
  Roads and housing and safe water and sanitation systems;
  Fire and police protection;
  And perhaps, most important of all, hope to those who have long ago 
given up hope that they could share in the American dream--that they 
could end the cycle of despair and devastation that has been wrought on 
their communities.
  Mr. President, I am not one who supports gaming.
  But I count myself amongst those who acknowledge our shameful 
treatment of America's Native people, and who recognize their rights as 
sovereigns, to employ the same tools of economic development that so 
many States have adopted.
  The Committee on Indian Affairs will hold hearings on the measure on 
July 19 and July 25. Thereafter, we hope to proceed to consideration of 
the measure for report to the full Senate before the August recess if 
possible.
  Mr. President, I urge my colleagues to give this measure their most 
careful consideration, as we once again, begin this debate.
  Mr. McCAIN. Mr. President, I am pleased to join today with the 
chairman of the Committee on Indian Affairs, Senator Inouye, as a 
sponsor of the Indian Gaming Regulatory Act Amendments Act of 1994. I 
want to associate myself with Senator Inouye's remarks regarding this 
legislation and the issue of Indian gaming. I commend Senator Inouye 
for his outstanding leadership over the years on this complex issue.
  The bill we are introducing today would provide for a major overhaul 
of the Indian Gaming Regulatory Act of 1988. It will provide for a 
direct Federal presence in the regulation and licensing of class II and 
class III gaming as well as all of the industries associated with such 
gaming. This will be accomplished through the establishment of an 
expanded Federal Indian Gaming Commission which will be funded through 
assessments on Indian gaming and fees imposed on license applicants. 
The bill also provides a new process for the negotiation of class III 
compacts which will allow the States to opt out of the negotiations if 
they so choose. Consistent with the 1987 decision of the U.S. Supreme 
Court in the case of Cabazon Band of Mission Indians versus California, 
the bill contains new provisions intended to reduce disagreements 
between tribes and States over the scope of gaming and to provide for 
prompt resolution of any disputes which may arise. Provisions of the 
Bank Secrecy Act would be applied to Indian gaming activities to the 
same extent that the act is applied to any other gaming activity.
  Since the enactment of the Indian Gaming Regulatory Act in 1988, 
there has been a dramatic increase in the amount of gaming activity 
among the Indian tribes. Indian gaming is now estimated to yield gross 
revenues of about $4 billion per year and net revenues are estimated at 
$750 million. There are about 160 class II bingo and card games in 
operation and there are now over 100 tribal/State compacts governing 
class III in 20 States. Indian gaming comprises about 3 percent of all 
gaming in the United States. Gaming activities operated by State 
governments comprise about 36 percent of all gaming and the private 
sector accounts for the balance of the gaming activity in the Nation.
  Indian gaming has become the single largest source of economic 
activity for Indian tribes. Annual revenues derived from Indian 
agricultural resources have been estimated at $550 million and have 
historically been the leading source of income for Indian tribes and 
individuals. Annual revenues from oil, gas and minerals are about $230 
million and Indian forestry resources revenues are estimated at $61 
million. The estimated annual earnings on gaming now equal or exceed 
all of the revenues derived from Indian natural resources. In addition, 
Indian gaming has generated tens of thousands of new jobs for Indians 
and non-Indians. On many reservations gaming has meant the end of 
unemployment rates of 90 or 100 percent and the beginning of an era of 
full employment.
  Under the Indian Gaming Regulatory Act, Indian tribes are required to 
expend the profits from gaming activities to fund tribal government 
operations or programs and to promote tribal economic development. 
Profits may only be distributed directly to the members of an Indian 
tribe under a plan which has been approved by the Secretary of the 
Interior. Only a few such plans have been approved. Virtually all of 
the proceeds from Indian gaming activities are used to fund the social 
welfare, education and health needs of the Indian tribes. Schools, 
health facilities, roads and other vital infrastructure is being built 
by the Indian tribes with the proceeds of Indian gaming.
  In the years before the enactment of the Indian Gaming Regulatory Act 
and in the years since its enactment we have heard concerns about the 
possibility for organized criminal elements to penetrate Indian gaming. 
Both the Department of Justice and the FBI have repeatedly testified 
before the Committee on Indian Affairs and have indicated that there is 
not any substantial criminal activity of any kind associated with 
Indian gaming. Some of our colleagues have suggested that no one would 
now if there is criminal activity because not enough people are looking 
for it. I believe that this point of view overlooks the fact that the 
act provides for a very substantial regulatory and law enforcement role 
by the States and Indian tribes in class III gaming and by the Federal 
Government in class II gaming. The record clearly shows that in the few 
instances of known criminal activity in class III gaming, the Indian 
tribes have discovered the activity and have sought Federal assistance 
in law enforcement.
  Nevertheless, the record before the Committee on Indian Affairs also 
shows that the absence of minimum Federal standards for the regulation 
and licensing of Indian gaming has allowed a void to develop which will 
become more and more attractive to criminal elements as Indian gaming 
continues to generate increased revenues. The legislation we are 
introducing today includes strict minimum Federal standards which are 
patterned after the laws of Nevada and New Jersey--the two States with 
the most experience in regulating gaming and confronting gaming related 
criminal activity. Several of the larger Indian gaming operations have 
also looked to Nevada and New Jersey as models for their own regulatory 
systems.

  The bill provides for a continued regulatory role for Indian tribes 
and States when the Federal standards are met or exceeded by State or 
tribal laws. The National Indian Gaming Commission will continuously 
monitor the regulation of all class II and class III gaming and will 
directly regulate these activities when the minimum Federal standards 
are being enforced by the Indian tribe or the tribe and State.
  As most of our colleagues know, one of the areas which has caused the 
greatest controversy under the current law relates to what has come to 
be known as the scope of gaming. A related issue is the refusal of some 
States to enter into negotiations for a class III compact and their 
assertion of sovereign immunity under the 11th amendment to the 
Constitution when an Indian tribe seeks judicial relief as provided by 
the act. The bill we are introducing incorporates the explicit 
standards of the Cabazon decision to guide all parties in determining 
the permissible gaming activities under the laws of any State. State 
laws will continue to govern this issue. We have not pre-empted the 
gaming laws of any State.
  In an effort to assist the application of the Cabazon criteria, we 
have included definitions for gambling devices, lottery games, 
parimutuel wagering and other games of chance and we have provided that 
each of these are distinct from each other. These provisions should 
help to resolve concerns which have come to be characterized by the 
phrase ``any mans all.'' In addition, the scope of gaming provisions of 
the bill would establish new procedures for the resolution of disputes 
over which activities are subject to compact negotiations.
  With regard to the issue of the refusal of some States to negotiate 
and the 11th amendment, the bill would establish a new process for 
compact negotiation which allows a State to choose to opt out of the 
negotiations. In such a circumstance, the Secretary of the Interior 
would negotiate the compact. If a State chooses to enter into 
negotiations, then that choice is voluntary and has the effect of 
waiving the State's sovereign immunity under the 11th amendment. In 
either case, the bill would establish firm timelines for the completion 
of negotiations and new procedures for the resolution of any disputes.
  Mr. President, as Senator Inouye stated I am sure that we will find 
many things to change in this legislation as it moves through the 
Senate. However, I believe that it provides a good foundation for our 
further consideration of this important issue. I ask unanimous consent 
that the bill be printed in the Record.
  There being no objection, the bill was ordered to be printed in the 
Record, as follows:

                                S. 2230

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

     SECTION 1. SHORT TITLE.

       This Act may be cited as the ``Indian Gaming Regulatory Act 
     Amendments Act of 1994.''

     SEC. 2. AMENDMENTS.

       The Indian Gaming Regulatory Act (25 U.S.C. 2701 et seq.) 
     is amended as follows:
       (1) Section 2 of the Act (25 U.S.C. 2701) is amended to 
     read as follows:

     ``SEC. 2. FINDINGS REGARDING INDIAN GAMING.

       ``The Congress finds that--
       ``(1) Indian tribal governments are engaged in the 
     operation of gaming activities on Indian lands as a means of 
     generating tribal governmental revenue and are licensing such 
     activities;
       ``(2) Clear federal standards and regulations for the 
     conduct of gaming on Indian lands will assist tribal 
     governments in assuring the integrity of gaming activities 
     conducted on Indian lands;
       ``(3) A principal goal of the United States' federal-Indian 
     policy is to promote tribal economic development, tribal 
     self-sufficiency, and strong tribal government;
       ``(4) While Indian tribal governments have the right to 
     regulate the operation of gaming activities on Indian lands 
     if such gaming activities are not specifically prohibited by 
     federal law and are conducted within a State which does not 
     prohibit such activities as a matter of criminal law and 
     public policy, the Congress has the authority to regulate the 
     privilege of doing business in Indian country;
       ``(5) Systems for the regulation of gaming activities on 
     Indian lands should conform to federally-established minimum 
     regulatory requirements;
       ``(6) The operation of gaming activities on Indian lands 
     has had a significant impact on commerce with foreign 
     nations, among the several States and with the Indian tribes; 
     and
       ``(7) The United States Constitution vests the Congress 
     with the powers to `. . . regulate Commerce with foreign 
     Nations, and among the several States, and with the Indian 
     Tribes. . . ' and this Act is enacted in the exercise of 
     those powers.''.
       (2) Section 3 of the Act (25 U.S.C. 2702) is amended as 
     follows:

     ``SEC. 3. DECLARATION OF POLICY REGARDING INDIAN GAMING.

       ``The purpose of this Act is--
       ``(1) to provide a statutory basis for the conduct of 
     gaming activities on Indian lands as a means of promoting 
     tribal economic development, self-sufficiency, and strong 
     tribal governments;
       ``(2) to provide a statutory basis for the regulation of 
     gaming activities on Indian lands by an Indian tribal 
     government adequate to shield such activities from organized 
     crime and other corrupting influences, to ensure that an 
     Indian tribal government is the primary beneficiary of the 
     operation of gaming activities, and to ensure that gaming is 
     conducted fairly and honestly by both the operator and 
     players; and
       ``(3) to declare that the establishment of independent 
     federal regulatory authority for the conduct of gaming 
     activities on Indian lands, the establishment of federal 
     standards for the account of gaming activities on Indian 
     lands, and the establishment of a National Indian Gaming 
     Commission are necessary to address congressional concerns 
     regarding the conduct of gaming activities on Indian lands 
     and to protect such gaming as a means of generating tribal 
     revenue.''.
       (3) Section 4 of the Act (25 U.S.C. 2703) is amended as 
     follows:

     ``SEC. 4. DEFINITIONS.

       ``For purposes of this Act--
       ``(1) The term `Attorney General' means the Attorney 
     General of the United States.
       ``(2) The term `banking game' means any game of chance that 
     is played with the house as a participant in the game, where 
     the house takes on all players, collects from all losers, and 
     pays all winners, and the house can win.
       ``(3) The term `Chairman' means the Chairman of the 
     National Indian Gaming Commission.
       ``(4) 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.
       ``(5)(A) The term `Class II gaming' means--
       ``(i) the game of chance commonly known as bingo or lotto 
     (whether or not electronic, computer, or other technologic 
     aids are used in connection therewith)--
       ``(I) which is played for prizes, including monetary 
     prizes,
       ``(II) in which the holder of the card covers such numbers 
     or designations when objects, similarly numbered or 
     designated, are drawn or electronically determined, and
       ``(III) in which the game is won by the first person 
     covering a previously designated arrangement of numbers or 
     designations on such cards,

     including, if played in the same location, pull-tabs, punch 
     boards, tip jars, instant bingo, and other games similar to 
     bingo, and
       ``(ii) card games that--
       ``(I) are explicitly authorized by the laws of the State, 
     or
       ``(II) are not prohibited as a matter of State criminal law 
     and are legally played at any location in the State, but only 
     if such card games are played in conformity with those laws 
     and regulations (if any) of the State regarding hours or 
     periods of operation of such card games or limitations on 
     wagers or pot sizes in such card games.
       ``(B) The term `Class II games' does not include--
       (i) any banking card games, including baccarat, chemin de 
     fer, or blackjack (21) or
       (ii) gambling devices as defined in section 1(a)(2) or 
     section 1(a)(3) of the Act of January 2, 1951 (15 U.S.C. 
     1171(a)(2) or (3)), or slot machines of any kind.
       ``(6) The term `Class III gaming' means all forms of gaming 
     that are not class I gaming or class II gaming.
       ``(7) The term `Commission' means the National Indian 
     Gaming Commission established pursuant to section 5 of this 
     Act.
       ``(8) The term ``compact'' means the regulatory regime for 
     operating class III gaming entered into either by a tribe and 
     the Secretary, or a tribe and a State, published pursuant to 
     section 10 of this Act, and includes procedures in lieu of a 
     compact published by the Secretary prior to the effective 
     date of the Indian Gaming Regulatory Act Amendments Act of 
     1994.
       ``(9) the term `electronic, computer, or other technologic 
     aid'' means a device, such as a computer, telephone, cable, 
     television, satellite, or bingo blower, which, when used--
       ``(A) is not a fame of chance, a gambling device, or a slot 
     machine;
       ``(B) merely assists a player or the playing of a game; and
       ``(C) is operated according to applicable Federal 
     communications law.
       ``(10) The term `electronic or electromechanical facsimile' 
     means any gambling device as defined in section 1(a)(2) or 
     section 1(a)(3) of the Act of January 2, 1951 (15 U.S.C. 1171 
     (a)(2) or (3)).
       ``(11) The term `gambling device' means any gambling device 
     as defined in section 1(a)(2) or section 1(a)(3) of the Act 
     of January 2, 1951 (15 U.S.C. 1171(a)(2) or (3)), including 
     any electronic or electromechanical facsimile.
       ``(12) The term `gaming activity' means a game of chance, 
     whether electronic, electromechanical or otherwise, that is 
     distinguished from another game of chance by its principal 
     characteristics.
       ``(13) The term `gaming-related contract' means any 
     agreement under which an Indian tribe or its agent procures 
     gaming materials, supplies, equipment or services which are 
     used in the conduct of a class II or class III gaming 
     activity, or financing contracts or agreements for any 
     facility in which a gaming activity is to be conducted.
       ``(14) The term `gaming-related contractor' means any 
     person, corporation, partnership or other entity entering 
     into a gaming-related contract with an Indian tribe or its 
     agent, including any person, corporation, partnership or 
     other entity among which there is common ownership.
       ``(15) The term `gaming service industry' means any form of 
     enterprise which provides goods or services which are used in 
     conjunction with any class II of class III gaming activity, 
     including, without limitation, travel services, security, 
     gaming schools, manufacturers, distributors and servicers of 
     gaming devices, garbage haulers, linen suppliers, maintenance 
     and cleaning services, food and non-alcohol beverage 
     purveyors and construction companies.
       ``(16) The term `key employee' means any natural person 
     employed in a gaming operation licensed pursuant to this Act 
     in a supervisory capacity or empowered to make any 
     discretionary decision with regard to the gaming operation, 
     including, without limitation, pit bosses, shift bosses, 
     credit executives, cashier supervisors, gaming facility 
     managers and assistant managers, and managers or supervisors 
     of security employees.
       ``(17) The term `lottery game' means a scheme for the 
     distribution of a prize by chance where multiple players pay 
     for the opportunity to win the prize and select a chance 
     either (A) from a finite number of chances where the 
     winning combinations are predetermined but concealed prior 
     to purchase and the selection of each choice depletes the 
     number of chances remaining, or (B) where the winner or 
     winners are determined by random selection after all 
     entries are completed, including where a time limit for 
     entry has passed, when a predetermined number of players 
     have entered, or when a predetermined sum of money has 
     been wagered.
       ``(18) The term `net revenues' means gross revenues of an 
     Indian gaming activity less amounts paid out as, or paid for, 
     prizes and total operating expenses, excluding management 
     fees.
       ``(19) The term `notify' means the act of sending a notice 
     in writing, delivered by certified mail, with receipt 
     requested, to the chief executive officer, and the chief 
     legal officer of a State or of an Indian tribe; and, for 
     purposes of that Act, the date of notification shall be the 
     actual date of receipt as evidenced by the return receipt.
       ``(20) The term ``other games of chance'' means any class 
     III gaming activity which is not a gambling device, a lottery 
     game, a banking game, or parimutuel wagering.
       ``(21) The term ``parimutuel wagering'' means a system of 
     betting on contests involving human or animals in which bets 
     are pooled and the winners are paid according to odds 
     determined by the volume of betting on the entries, with or 
     without a deduction for the operator.
       ``(22) The term ``person'' means an Indian tribe, 
     individual, firm, corporation, association, partnership, 
     trust, consortium, joint venture, or commercial entity.
       ``(23) The term ``principal characteristics'' means the 
     pace of play, complexity or type of choices for the player, 
     appearance of the activity, nature of the interaction with 
     the operator, other players or machine, and other attributes 
     of a gaming activity which would be perceived by and be 
     significant to a player familiar with games of chance.
       ``(24) The term `prohibited as a matter of State criminal 
     law' means an activity in a State which, under the law of 
     that State, is subject to prosecution and a criminal 
     sanction.
       ``(25) The term `Secretary' means the Secretary of the 
     Interior.
       ``(26) The term ``slot machine'' means any player activated 
     gaming device involving mechanical, electronic, 
     electromechanical, or computer technology, or any combination 
     thereof which--
       (A) accepts anything of monetary value, whether coin, 
     currency or tokens, to initiate the operation of the gaming 
     device;
       (B) has as an integral part, a system of generating 
     infinite random numbers or combinations thereof, which 
     determine the successful operation of the device;
       (C) rewards the successful operation of the device with 
     anything of monetary value; and
       (D) rewards the successful operation of the device solely 
     on the basis of chance.
       ``(27) The term `social gaming activity' means a gaming 
     activity which is not--
       ``(A) a commercial, governmental, charitable or systematic 
     gaming enterprise;
       ``(B) where no person, organization or entity other than 
     the participants obtains or receives money or something of 
     more than minimal value from the gaming activity, whether by 
     taking a percentage of wagers or winnings or by banking the 
     game;
       ``(C) where no person, organization or entity charges 
     admission or other fees to participate in the game; and
       ``(D) where such gaming activity is not conducted in places 
     ordinarily and regularly used for gaming and is only played 
     for nominal value.
       (4) Section 5 of the Act (25 U.S.C. 2704) is amended to 
     read as follows:

     ``SEC. 5. ESTABLISHMENT OF THE NATIONAL INDIAN GAMING 
                   COMMISSION.

       ``(a) There is established as an independent agency of the 
     Untied States a Commission to be known as the National Indian 
     Gaming Commission.
       ``(b)(1) Composition of the Commission.--The Commission 
     shall be composed of five full-time members who shall be 
     appointed by the President with the advice and consent of the 
     Senate.
       ``(2) Each member of the Commission shall be a citizen of 
     the United States.
       ``(3) Each member of the Commission shall devote his entire 
     time and attention to the business of the Commission and 
     shall not--
       ``(A) pursue any other business or occupation or hold any 
     other office;
       ``(B) be actively engaged in or have any direct pecuniary 
     interest in gaming activities;
       ``(C) have any pecuniary interest in any business or 
     organization holding a gaming license under this Act or doing 
     business with any person or organization licensed under this 
     Act;
       ``(D) have been convicted of a felony or gaming offense; or
       ``(E) have any financial interest in, or management 
     responsibility for, any gaming-related contract or any other 
     contract approved pursuant to this Act.
       ``(4) Not more than three of such members of the Commission 
     shall be members of the same political party and in making 
     appointments, members of different political parties shall be 
     appointed alternatively as nearly as may be practicable.
       ``(5) At least two members of the Commission shall be 
     enrolled members of any Indian tribe.
       ``(6) The Commission shall be composed of the most 
     qualified persons available, provided that--
       ``(A) one member of the Commission must be a certified 
     public accountant with at least 5 years of progressively 
     responsible experience in accounting and auditing, and 
     comprehensive knowledge of the principles and practices of 
     corporate finance; and
       ``(B) one member of the Commission must be selected with 
     special reference to his training and experience in the 
     fields of investigation or law enforcement.
       ``(7) The Attorney General of the United States shall 
     conduct a background investigation on any person considered 
     for appointment to the Commission, with particular regard to 
     the nominee's financial stability, integrity, and 
     responsibility and his reputation for good character, 
     honesty, and integrity.
       ``(c) Terms of Office.--(1) Each member of the Commission 
     shall hold office for a term of five years.
       ``(2) Initial appointments to the Commission shall be for 
     terms as follows--
       ``(A) the Chairman for 5 years;
       ``(B) one member for 4 years;
       ``(C) one member of 3 years;
       ``(D) and the remaining members for terms of 2 years each.
       ``(3) After the initial appointments, all members shall be 
     appointed for terms of 5 years; provided that no member shall 
     serve more than two terms of 5 years each.
       ``(d) Vacancies.--(1) The persons appointed by the 
     President to serve as Chairman and members of the Commission 
     shall serve in such capacities throughout their entire terms 
     and until their successors shall have been duly appointed and 
     qualified, unless the Chairman or a member of the Commission 
     has been removed for cause under paragraph (2) of this 
     subsection.
       ``(2) The Chairman or any member of the Commission may only 
     be removed from office before the expiration of their term of 
     office by the President for neglect of duty, or malfeasance 
     in office, or for other good cause shown.
       ``(3) Appointment to fill vacancies on the Commission shall 
     be for the unexpired term of the member to be replaced.
       ``(e) Quorum.--Three members of the Commission, at least 
     one of which is the Chairman or Vice-Chairman, shall 
     constitute a quorum.
       ``(f) Chairman.--The President shall designate one of the 
     five members of the Commission to serve as Chairman of the 
     Commission.
       ``(g) Vice Chairman.--The Commission shall select, by 
     majority vote, one of the members of the Commission to serve 
     as Vice Chairman, The Vice Chairman shall serve as Chairman 
     of the Commission in the Chairman's absence and shall 
     exercise such other powers as may be delegated by the 
     Chairman.
       (h) Meetings.--(1) The Commission shall meet at the call of 
     the Chairman or a majority of its members.
       ``(2) A majority of the members of the Commission shall 
     determine any action of the Commission.
       ``(i) Compensation.--(1) The Chairman of the Commission 
     shall be paid at a rate equal to that of level III of the 
     Executive Schedule under section 5316 of title 5, United 
     States Code.
       ``(2) The members of the Commission shall each be paid at a 
     rate equal to that of level IV of the Executive Schedule 
     under section 5316 of title 5, United States Code.
       ``(3) All members of the Commission shall be reimbursed in 
     accordance with title 5, United States Code, for travel, 
     subsistence, and other necessary expenses incurred by them in 
     the performance of their duties.''
       (5) Section 6 of the Act (25 U.S.C. 2705) is amended to 
     read as follows--

     ``SEC. 6. POWERS OF THE CHAIRMAN.

       ``(a) The Chairman shall serve as the chief executive 
     officer of the Commission.
       ``(b) Subject to the provisions of subsection (c) of this 
     section, the Chairman shall--
       ``(1) employ and supervise such personnel as is deemed 
     necessary to carry out the functions of the Commission, and 
     assign work among such personel;
       ``(2) use and expend federal funds and funds collected 
     pursuant to section 15 of this Act.
       ``(3) contract for the services of other professional, 
     technical and operational personnel and consultants as may be 
     necessary to the performance of the Commission's 
     responsibilities under this Act;
       ``(c) In carrying out any of the functions pursuant to this 
     section, the Chairman shall be governed by the general 
     policies of the Commission and by such regulatory decisions, 
     findings and determinations as the Commission may by law be 
     authorized to make.''
       (6) Section 7 of the Act (25 U.S.C. 2706 is amended to read 
     as follows--

     ``SEC. 7. POWERS AND AUTHORITY OF THE COMMISSION.

       ``(A) General Powers.--The Commission shall have the power 
     to--
       ``(1) approve the annual budget of the Commission;
       ``(2) adopt regulations to carry out the provisions of this 
     Act;
       ``(3) exercise the law enforcement powers necessary to 
     fulfill the purposes of this Act and the regulations 
     promulgated thereunder;
       ``(4) establish a rate of fees and assessments as provided 
     in section 15 of this Act;
       ``(5) conduct investigations;
       ``(6) issue a temporary order closing the operation of 
     gaming activities;
       ``(7) after a hearing, make permanent a temporary order 
     closing the operation of gaming activities as provided in 
     section 13 of this Act;
       ``(8) grant, deny, limit, condition, restrict, revoke or 
     suspend any license issued pursuant to this Act or fine any 
     person pursuant to this Act for any cause deemed reasonable 
     by the Commission;
       ``(9) inspect and examine all premises located on Indian 
     lands on which class II or class III gaming is conducted;
       ``(10) demand access to inspect, examine, photocopy, and 
     audit all papers, books, and records of Class II and Class 
     III gaming activities conducted on Indian lands and any other 
     matters necessary to carry out the duties of the Commission 
     under this Act;
       ``(11) use the United States mail in the same manner and 
     under the same conditions as any department or agency of the 
     United States;
       ``(12) procure supplies, services, and property by contract 
     in accordance with applicable federal laws and regulations;
       ``(13) enter into contracts with federal, state, tribal, 
     and private entities for activities necessary to the 
     discharge of the duties of the Commission;
       ``(14) serve or cause to be served its process or notices 
     in a manner provided for by the Commission or in a manner 
     provided for the service of process and notice in civil 
     actions in accordance with the rules of a tribal, state or 
     federal court;
       ``(15) propound written interrogatories and appoint hearing 
     examiners, to whom may be delegated the power and authority 
     to administer oaths, issue subpoenas, propound written 
     interrogatories, and require testimony under oath;
       ``(16) conduct all hearings pertaining to civil violations 
     of this Act or regulations promulgated thereunder;
       ``(17) collect all fees and assessments imposed by this Act 
     and the regulations promulgated thereunder;
       ``(18) assess penalties for the violation of provisions of 
     this Act and the regulations promulgated thereunder;
       ``(19) provide training and technical assistance to Indian 
     tribal governments in all aspects of the conduct and 
     regulation of gaming activities; and
       ``(20)(A) In addition to its existing authority, the 
     Commission shall have the authority to delegate, by published 
     order or rule, any of its functions to a division of the 
     Commission, an individual member of the Commission, an 
     administrative law judge, or an employee, including functions 
     with respect to hearing, determining, ordering, certifying, 
     reporting, or otherwise acting as to any work, business, or 
     matter;
       ``(B) Nothing in this section shall be deemed to authorize 
     the delegation of the function of the rule-making as defined 
     in subchapter II of chapter 5 of title 5 of the United States 
     Code, with reference to general rules as distinguished from 
     rules of particular applicability, or the making of any rule;
       ``(C) with respect to the delegation of any of its 
     functions, the Commission shall retain a discretionary right 
     to review the action of any division of the Commission, 
     individual member of the Commission, administrative law 
     judge, or employee, upon its own initiative.
       ``(D) the vote of one member of the Commission shall be 
     sufficient to bring any such action before the Commission for 
     review;
       ``(E) if the right to exercise such review is declined or, 
     if no such review is sought within the time stated in the 
     rules promulgated by the Commission, then the action of any 
     such division of the Commission, individual member of 
     the Commission, administrative law judge, or employee, 
     shall, for all purposes, including appeal or review 
     thereof, be deemed the action of the Commission.''
       ``(b) Regulatory Authority.--The Commission shall--
       ``(1) approve all gaming-related contracts;
       ``(2) establish minimum regulatory requirements for 
     background investigations, licensing of persons and licensing 
     of gaming operations associated with the conduct of class II 
     and class III gaming on Indian lands by tribal governments;
       ``(3) establish minimum internal control requirements for 
     the operation of class II and class III gaming activities on 
     Indian lands, including but not limited to--
       ``(A) surveillance and security personnel and systems 
     capable of monitoring all gaming activities including the 
     conduct of games, cashiers' cages, change booths, count 
     rooms, movements of cash and chips, entrances and exists to 
     gaming facilities and other critical areas of any gaming 
     facility;
       ``(B) the rules for the play of games and controls related 
     to such rules;
       ``(C) credit and debit collection controls;
       ``(D) controls over gambling devices and equipment; and
       ``(E) accounting and auditing;
       ``(4) inspect and examine all premises located on Indian 
     lands on which class II or class III gaming is conducted;
       ``(5)(A) monitor and regulate the background investigations 
     conducted by tribal governments of persons involved in a 
     class II gaming operation, including but not limited to key 
     employees of any licensed gaming operation, gaming-related 
     contractors, and any persons who have a material involvement, 
     either directly or indirectly, with a licensed gaming 
     operation, to assure that background investigations are 
     consistent with the minimum regulatory requirements for 
     background investigations established by the Commission;
       ``(B) monitor and regulate the licensing by tribal 
     governments of persons involved in a class II gaming 
     operation, including but not limited to key employees of any 
     licensed gaming operation, gaming-related contractors, gaming 
     service industries, and any persons having a material 
     involvement, either directly or indirectly, with a licensed 
     gaming operation, gaming related contractor or gaming service 
     industry, to assure that such licensing is consistent with 
     the minimum regulatory requirements for the licensing of 
     persons established by the Commission;
       ``(C) monitor and regulate the licensing by tribal 
     governments of class II gaming operations to assure that such 
     licensing is consistent with the minimum regulatory 
     requirements for the licensing of gaming operations 
     established by the Commission;
       ``(D) except the where a tribal government's system for the 
     conduct of background investigation, the licensing of persons 
     or the licensing of gaming operations fails to meet the 
     minimum regulatory background investigation or licensing 
     requirements established by the Commission, the Commission's 
     authority to conduct background investigations, to license 
     and directly regulate Class II gaming activities conducted on 
     Indian lands shall be exclusive until such time as the 
     Commission determines that the regulation of Class II gaming 
     activities on Indian lands by a tribal government meets the 
     established minimum regulatory requirements;
       ``(6)(A) monitor and regulate a tribal gaming operation and 
     the tribal government's system for internal controls to 
     assure that such system is consistent with the minimum 
     regulatory requirements for internal controls established by 
     the Commission;
       ``(B) except that where a tribal government's system for 
     internal controls fails to meet the minimum internal control 
     requirements established by the Commission, the Commission's 
     authority to directly establish and regulate internal control 
     systems associated with Class II gaming activities shall be 
     exclusive until such time as the Commission determines that 
     the regulation of Class II gaming activities on Indian lands 
     by a tribal government meets the minimum internal control 
     requirements established by the Commission;
       ``(7) monitor and regulate Class III gaming activities 
     conducted on Indian lands, and have the exclusive authority 
     to--
       ``(A) license
       ``(i) Class III gaming operations conducted on Indian 
     lands;
       ``(ii) key employees of all licensed Class III gaming 
     operations conducted on Indian lands;
       ``(iii) any persons having a material involvement, either 
     directly or indirectly, with a licensed Class III gaming 
     operation conducted on Indian lands;
       ``(iv) gaming-related contractors, including but not 
     limited to any vendor or supplier of gaming equipment or 
     gambling devices associated with a licensed class III gaming 
     operation;
       ``(v) gaming service industries pursuant to which an Indian 
     tribal government or its agent enters into an agreement in 
     excess of $10,000 for the procurement of materials, supplies, 
     equipment or services which are used in association with 
     a licensed Class III gaming operation, or financing 
     contracts or agreements with a gaming service industry in 
     excess of $10,000 associated with any facility which is 
     used in association with a licensed Class III gaming 
     activity; and
       ``(vi) any other person or company or other entity for 
     which the Commission may require licensure;
       ``(B) conduct background investigations on--
       ``(i) key employees of any licensed class III gaming 
     operation conducted on Indian lands;
       ``(ii) principal investors having a material involvement, 
     either directly or indirectly, with a licensed class III 
     gaming operation;
       ``(iii) principal gaming-related contractors; and
       ``(iv) any other person or company or other entity for 
     which the Commission may require a background investigation;
       ``(C) The Commission shall make a determination as to 
     principal investors and principal gaming-related contractors;
       ``(8)(A) in the context of a compact entered into by a 
     tribal government with a state government, monitor and 
     regulate the conduct of background investigations of (i) non-
     principal investors having a material involvement, either 
     directly or indirectly, with a licensed Class III gaming 
     operation; (ii) non-principal gaming-related contractors, 
     including but not limited to vendors or suppliers of gaming 
     equipment or gambling devices associated with a licensed 
     Class II gaming operation, and (iii) non-principal key 
     employees of any licensed Class III gaming operation; either 
     in conjunction with Indian tribal governments or state 
     governments, or both;
       ``(B) except that where the regulatory system of a tribal 
     government or a state government, or both, for the conduct of 
     background investigations fails to meet minimum regulatory 
     requirements established by the Commission for the conduct of 
     background investigations, the Commission shall have the 
     exclusive authority to conduct background investigations 
     until such time as the regulatory system of a tribal 
     government or a state government, or both, meet the minimum 
     regulatory requirements established by the Commission for the 
     conduct of background investigations;
       ``(9)(A) in the context of a compact entered into by a 
     tribal government with the Secretary of the Interior, monitor 
     and regulate the conduct of background investigations of (i) 
     non-principal investors having a material involvement, either 
     directly or indirectly, with a licensed Class III gaming 
     operation; (ii) non-principal gaming-related contractors, 
     including but not limited to vendors or suppliers of gaming 
     equipment or gambling devices associated with a licensed 
     Class III gaming operation, and (iii) non-principal key 
     employees of any licensed Class III gaming operation; in 
     conjunction with an Indian tribal government to assure that 
     the tribal government's system for the conduct of background 
     investigations is consistent with the minimum regulatory 
     requirements for backgrounds investigations established by 
     the Commission;
       ``(B) except that where the regulatory system of a tribal 
     government for the conduct of background investigations fails 
     to meet minimum regulatory requirements established by the 
     Commission for the conduct of background investigations, the 
     Commission shall have the exclusive authority to conduct 
     background investigations until such time as the regulatory 
     system of a tribal government meets the minimum regulatory 
     requirements established by the Commission for the conduct of 
     background investigations;
       ``(10)(A) monitor and regulate the internal control systems 
     associated with a licensed class III gaming operation to 
     assure that such systems are consistent with the minimum 
     regulatory requirements for internal controls established by 
     the Commission;
       ``(B) except that where the internal control systems fail 
     to meet the minimum internal control requirements established 
     by the Commission, the Commission's authority to directly 
     establish and regulate internal control systems associated 
     with a licensed class III gaming operation shall be exclusive 
     until such time as the Commission determines that the 
     internal control systems meet the minimum internal control 
     requirements established by the Commission;
       ``(c) Licensing.--A license approved by the Commission 
     shall be required of--
       ``(A) any person having a material involvement, either 
     directly or indirectly, with a licensed gaming operation;
       ``(B) any person having a material involvement, either 
     directly or indirectly, with a gaming-related contract;
       ``(C) any gaming-related contractor, including but not 
     limited to any vendor or supplier of gaming equipment or 
     gambling devices associated with a licensed gaming operation;
       ``(D) any gaming service industry for which the Commission 
     may require licensure;
       ``(E) any gaming operation, including the management of any 
     gaming operation; and
       ``(F) any other person or company or other entity for which 
     the Commission may require licensure;
       ``(2)(A) The Commission may issue a statement of compliance 
     to an applicant for any license or for qualification status 
     under this Act at any time the Commission is satisfied that 
     one or more particular eligibility criteria have been 
     satisfied by an applicant.
       ``(B) Such statement shall specify the eligibility 
     criterion satisfied, the date of such satisfaction and a 
     reservation to the Commission to revoke the statement of 
     compliance at any time based upon a change of circumstances 
     affecting such compliance.
       ``(3)(A) No gaming operation shall operate unless all 
     necessary licenses and approvals therefor have been obtained 
     in accordance with this Act.
       ``(B)(i) Prior to the operation of any gaming facility or 
     activity, every agreement for the management of the gaming 
     operation shall be in writing and filed with the Commission 
     pursuant to section 11 of this Act.
       ``(ii) No such agreement shall be effective unless 
     expressly approved by the Commission.
       ``(iii) The Commission may require that any such agreement 
     include within its terms any provisions reasonably necessary 
     to best accomplish the policies of this Act.
       ``(iv) The Commission may determine that any applicant who 
     does not have the ability to exercise any significant control 
     over a licensed gaming operation shall not be eligible to 
     hold or required to hold a license.
       ``(4)(A) The Commission shall deny a license for the 
     management of a gaming operation to any applicant who is 
     disqualified on the basis of any of the following 
     criteria--
       ``(i) Failure of the applicant to prove by clear and 
     convincing evidence that the applicant is qualified in 
     accordance with the provisions of this Act;
       ``(ii) Failure of the applicant to provide information, 
     documentation and assurances required by the Act or requested 
     by the Commission, or failure of the applicant to reveal any 
     fact material to qualification, or the supplying information 
     which is untrue or misleading as to a material fact 
     pertaining to the qualification criteria;
       ``(iii) The conviction of the applicant, or of any person 
     required to be qualified under this Act as a condition of a 
     license for the management of a gaming operation, of any 
     offense in any jurisdiction which is deemed by the Commission 
     to disqualify the applicant; provided that--
       ``(B) the automatic disqualification provisions of this 
     subsection shall not apply with regard to any conviction 
     which did not occur within the 10-year period immediately 
     preceding application for licensure and which the applicant 
     demonstrates by clear and convincing evidence does not 
     justify automatic disqualification pursuant to this 
     subsection and any conviction which has been the subject of a 
     judicial order of expungement;
       ``(5)(A) Upon the filing of an application for a license 
     for the management of a gaming operation and such 
     supplemental information as the Commission may require, the 
     Commission shall conduct an investigation into the 
     qualifications of the applicant, and the Commission shall 
     conduct a hearing thereon concerning the qualifications of 
     the applicant in accordance with its regulations;
       ``(B) After such investigation and hearing, the Commission 
     may either deny the application or grant a gaming operation 
     license to an applicant whom it determines to be qualified to 
     hold such license;
       ``(C)(i) The Commission shall have the authority to deny 
     any application pursuant to the provisions of this Act;
       ``(ii) When an application is denied, the Commission shall 
     prepare and file an order denying such application with the 
     general reasons therefor, and if requested by the applicant, 
     shall further prepare and file a statement of the reasons for 
     the denial, including the specific findings of facts.
       ``(iii) After an application is submitted to the 
     Commission, final action of the Commission shall be taken 
     within 90 days after completion of all hearings and 
     investigations and the receipt of all information required by 
     the Commission;
       ``(D) If satisfied that an applicant is qualified to 
     receive a license for the management of a gaming operation, 
     and upon tender of all license fees and assessments as 
     required by this Act and regulations of the Commission, and 
     such bonds as the Commission may require for the faithful 
     performance of all requirements imposed by this Act or 
     regulations promulgated thereunder, the Commission shall 
     issue a license for the management of a gaming operation for 
     the term of 1 year;
       ``(E)(i) The Commission shall fix the amount of the bond or 
     bonds to be required under this section in such amounts as it 
     may deem appropriate, by rules of uniform application;
       ``(ii) The bonds so furnished may be applied by the 
     Commission to the payment of any unpaid liability of the 
     licensee under this Act;
       ``(iii) The bond shall be furnished in cash or negotiable 
     securities, by a surety bond guaranteed by a satisfactory 
     guarantor, or by an irrevocable letter of credit issued by a 
     banking institution of any state acceptable to the 
     Commission;
       ``(iv) If furnished in cash or negotiable securities, the 
     principal shall be placed without restriction at the disposal 
     of the Commission, but any income shall inure to the benefit 
     of the licensee;
       ``(6)(A)(i) Subject to the power of the Commission to deny, 
     revoke, or suspend licenses, any license for the management 
     of a gaming operation in force shall be renewed by the 
     Commission for the next succeeding license period upon proper 
     application for renewal and payment of license fees and 
     assessments as required by law and the regulations of the 
     Commission;
       ``(ii) The license period for a renewed license for the 
     management of a gaming operation shall be up to one year for 
     each of the first two renewal periods succeeding the initial 
     issuance of a license for the management of a gaming 
     operation pursuant to subsection (5) of this section;
       ``(iii) Thereafter, a license for the management of a 
     gaming operation may be renewed for a period of up to two 
     years, but the Commission may reopen licensing hearings at 
     any time;
       ``(B)(i) Notwithstanding the other provisions of this 
     subsection, the Commission may, for the purpose of 
     facilitating its administration of this Act, renew the 
     license for the management of a gaming operation of the 
     holders of licenses initially opening after the date of 
     enactment of this Act for a period of one year, provided the 
     renewal period for those particular licenses for the 
     management of a gaming operation may not be adjusted more 
     than once pursuant to this provision;
       ``(ii) The Commission shall act upon any such application 
     prior to the date of expiration of the current license;
       ``(C) Application for renewal shall be filed with the 
     Commission no later than 90 days prior to the expiration of 
     the current license, and all license fees and assessments as 
     required by law shall be paid to the Commission on or before 
     the date of expiration of the current license;
       ``(D) Upon renewal of any license the Commission shall 
     issue an appropriate renewal certificate or validating device 
     or sticker which shall be attached to each license for the 
     management of a gaming operation;
       ``(7) Subject to the power of the Commission to deny, 
     revoke or suspend any license, any license other than a 
     license for the management of a gaming operation may be 
     renewed upon proper application for renewal and the payment 
     of fees in accordance with the rules of the Commission, but 
     in no event later than the date of expiration of the current 
     license;
       ``(d) Hearings.--(1) The Commission shall establish 
     procedures for the conduct of hearings associated with--
       ``(A) licensing of gaming operations and the management of 
     a gaming operation, including the denial, limiting, 
     conditioning, restriction, revocation, or suspension of any 
     such license;
       ``(B) licensing of--
       ``(i) key employees of gaming operations;
       ``(ii) any persons having a material involvement, either 
     directly or indirectly, with a licensed gaming operation;
       ``(iii) gaming-related contractors, including but not 
     limited to any vendor or supplier of gaming equipment or 
     gambling devices associated with a licensed gaming operation;
       ``(iv) gaming service industries pursuant to which an 
     Indian tribal government or its agent enters into an 
     agreement in excess of $10,000 for the procurement of 
     materials, supplies, equipment or services which are used in 
     association with a gaming operation, or financing contracts 
     or agreements with a gaming service industry in excess of 
     $10,000 associated with any facility which is used in 
     association with a gaming operation; and
       ``(v) any other person or company or other entity for which 
     the Commission may require licensure;

     including the denial, limiting, conditioning, restriction, 
     revocation, or suspension of any such license;
       ``(2) Following a hearing for any of the purposes 
     authorized in this section, the Commission shall render its 
     decision and issue an order, and serve such decision and 
     order upon the affected parties;
       ``(3)(A) The Commission may, upon motion made within 10 
     days after the service of a decision and order, order a 
     rehearing before the Commission upon such terms and 
     conditions as it may deem just and proper when the Commission 
     finds cause to believe that the decision and order should be 
     reconsidered in view of the legal, policy or factual matters 
     advanced by the moving party or raised by the Commission on 
     its own motion;
       ``(B) Following a rehearing, the Commission shall render 
     its decision and issue an order, and serve such decision and 
     order upon the affected parties;
       ``(C) The Commission's decision and order under subsection 
     (2) of this section when no motion for a rehearing is made, 
     or the Commission's decision and order upon rehearing shall 
     constitute final agency action for purposes of judicial 
     review under the Administrative Procedure Act;
       ``(4) The District of Columbia Circuit Court of Appeals 
     shall have jurisdiction to review the Commission's licensing 
     decisions and orders;
       ``(e) Commission Staffing.--(1) The Chairman shall appoint 
     a General Counsel to the Commission who shall be paid at the 
     annual rate of basic pay payable for ES-6 of the Senior 
     Executive Service Schedule under section 5382 of title 5 of 
     the United States Code;
       ``(2) The Chairman shall appoint and supervise other staff 
     of the Commission without regard to the provisions of title 
     5, United States Code, governing appointments in the 
     competitive service. Such staff shall be paid without regard 
     to the provisions of chapter 51 and subchapters III and VIII 
     of chapter 53 of such title relating to classification and 
     General and Senior Executive Service Schedule pay rates, 
     except that no individual so appointed may receive pay in 
     excess of the annual rate of basic pay payable for ES-5 of 
     the Senior Executive Service Schedule under section 5382 of 
     that title;
       ``(3) The Chairman may procure temporary and intermittent 
     services under section 3109(b) of title 5, United States 
     Code, but at rates for individuals not to exceed the daily 
     equivalent of the maximum annual rate of basic pay payable 
     for ES-6 of the Senior Executive Service Schedule.
       ``(4) Upon the request of the Chairman, the head of any 
     federal agency is authorized to detail any of the personnel 
     of such agency to the Commission to assist the Commission in 
     carrying out its duties under this Act, unless otherwise 
     prohibited by law;
       ``(5) The Administrator of General Services shall provide 
     to the Commission on a reimbursable basis such administrative 
     support services as the Commission may request;
       ``(f) Commission Access to Information.--(1) The Commission 
     may secure from any department or agency of the United States 
     information necessary to enable it to carry out this Act. 
     Upon request of the Chairman, the head of such department or 
     agency shall furnish such information to the Commission, 
     unless otherwise prohibited by law;
       ``(2) The Commission may secure from any law enforcement 
     agency of any State or Indian tribal government information 
     necessary to enable it to carry out this Act. Upon request of 
     the Chairman, the head of any State or tribal law enforcement 
     agency shall furnish such information to the Commission, 
     unless otherwise prohibited by law.
       ``(g) Investigations and Actions.--(1)(A) The Commission 
     may, in its discretion, conduct such investigations as it 
     deems necessary to determine whether any person has violated, 
     is violating, or is about to violate any provision of this 
     Act or the rules and regulations promulgated thereunder and 
     may require or permit any person to file with it a statement 
     in writing, under oath, or otherwise as the Commission shall 
     determine, as to all the facts and circumstances concerning 
     the matter to be investigated.
       ``(B) The Commission is authorized, in its discretion, to 
     investigate any facts, conditions, practices, or matters 
     which it may deem necessary or proper to aid in the 
     enforcement of such provisions, in the prescribing of rules 
     and regulations under this Act, or in securing information to 
     serve as a basis for recommending further legislation 
     concerning the matters to which this Act relates;
       ``(2)(A) For the purpose of any investigation or any other 
     proceeding under this Act, any member of the Commission or 
     any officer designated by the Commission is empowered to 
     administer oaths and affirmations, subpoena witnesses, compel 
     their attendance, take evidence, and require the production 
     of any books, papers, correspondence, memoranda, or other 
     records which the Commission deems relevant or material to 
     the inquiry. Such attendance of witnesses and the production 
     of any such records may be required from any place in the 
     United States or any State at any designated place of 
     hearing;
       ``(B) In case of contumacy by or refusal to obey any 
     subpoena issued to any person, the Commission may invoke the 
     jurisdiction of any court of the United States within the 
     jurisdiction of which an investigation or proceeding is 
     carried on, or where such person resides or carries on 
     business, in requiring the attendance and testimony of 
     witnesses and the production of books, papers, 
     correspondence, memoranda, and other records.
       ``(C) Any such court may issue an order requiring such 
     person to appear before the Commission or member of the 
     Commission or officer designated by the Commission, there to 
     produce records, if so ordered, or to give testimony touching 
     the matter under investigation or in question; and any 
     failure to obey such order of the court may be punished by 
     such court as a contempt thereof;
       ``(3) Whenever it shall appear to the Commission that any 
     person is engaged or about to engage in acts or practices 
     constituting a violation of any provision of this Act or 
     rules or regulations thereunder, the Commission may--
       ``(A) in its discretion, bring an action in the proper 
     district court of the United States or the United States 
     District Court for the District of Columbia, to enjoin such 
     acts or practices, and upon a proper showing, a permanent or 
     temporary injunction or restraining order shall be granted 
     without bond; or
       ``(B) transmit such evidence as may be available concerning 
     such acts or practices as may constitute a violation of any 
     criminal laws of the United States to the Attorney General, 
     who may institute the necessary criminal proceedings;
       ``(4) Upon application of the Commission, the district 
     courts of the United States shall have jurisdiction to issue 
     writs of mandamus, injunctions, and orders commanding any 
     person to comply with the provisions of this Act and the 
     rules and regulations thereunder;
       (7) Section 8 of the Act (25 U.S.C. 2707) is amended to 
     read as follows:
       Section 8 Requirements and Procedures for Applicants and 
     Licensees
       ``(a) Requirements of Applicants and Licensees.--(1)(A) It 
     shall be the affirmative responsibility of each applicant for 
     a license and each licensee to establish by clear and 
     convincing evidence their individual qualifications, and for 
     an applicant for a license for the management of a gaming 
     operation, the qualifications of each person or entity that 
     is required to be qualified under this Act;
       ``(B) For purposes of this section, the terms ``applicant'' 
     and ``licensee'' shall include any person, any entity, any 
     corporation, any company or any other organization for whom 
     the Commission requires an approved license pursuant to 
     section 7(c) of this Act as a condition of doing business in 
     Indian country;
       ``(2)(A) Any applicant or licensee shall provide all 
     information required by this Act and satisfy all requests for 
     information pertaining to qualifications and in the form 
     specified by the Commission;
       ``(B) All applicants and licensees shall waive the 
     liability of the Commission and its members, employees and 
     agents, for any damages resulting from any disclosure or 
     publication in any manner, other than a willfully unlawful 
     disclosure or publication, of any material or information 
     acquired during inquiries, investigations or hearings;
       ``(3) All applicants and licensees shall consent to 
     inspections, searches and seizures and the supplying of 
     handwriting exemplars as authorized by this Act and 
     regulations promulgated thereunder;
       ``(4)(A) All applicants and licensees shall have the 
     continuing duty to provide any assistance or information 
     required by the Commission, and to cooperate in any inquiry 
     or investigation conducted by the Commission and any inquiry, 
     investigation, or hearing conducted by the Commission;
       ``(B) If, upon issuance of a formal request to answer or 
     produce information, evidence or testimony, any applicant or 
     licensee refuses to comply, the application or license of 
     such person may be denied or revoked by the Commission.
       ``(5) No applicant or licensee shall give or provide, offer 
     to give or provide, directly or indirectly, any compensation 
     or reward or any percentage or share of the money or property 
     played or received through gaming activities, except as 
     authorized by this Act, in consideration for obtaining any 
     license, authorization, permission or privilege to 
     participate in any way in the operation of gaming activities;
       ``(6) Each applicant or licensee shall be photographed and 
     fingerprinted for identification and investigation purposes 
     in accordance with procedures established by the Commission;
       ``(7)(A) All applicants and licensees, and all persons 
     employed by a gaming service industry licensed pursuant to 
     this Act, shall have a duty to inform the Commission of any 
     action which they believe would constitute a violation of 
     this Act;
       ``(B) No person who so informs the Commission shall be 
     discriminated against by an applicant or licensee because of 
     the supplying of such information;
       ``(8)(A) Any person who must be qualified pursuant to this 
     Act in order to hold the securities of a licensee or any 
     holding or intermediary company of a licensee may apply for 
     qualification status prior to the acquisition of any such 
     securities;
       ``(B) the Commission may determine to accept such an 
     application upon a finding that there is a reasonable 
     likelihood that, if qualified, the applicant will obtain and 
     hold securities of a licensee sufficient to require 
     qualification;
       ``(C) Such an applicant shall be subject to the provisions 
     of this section and shall pay for the costs of all 
     investigations and proceedings in relation to the application 
     unless the applicant provides to the Commission an agreement 
     with one or more licensees which states that the licensee or 
     licensees will pay those costs;
       ``(b) License for the Management of a Gaming Operation--
     Applicant Eligibility.
       ``(1) No corporation shall be eligible to apply for a 
     license for the management of a gaming operation unless--
       ``(A) The corporation shall be incorporated in one of the 
     fifty states or by an Indian tribe, although such corporation 
     may be a wholly or partially owned subsidiary of a 
     corporation which is incorporated in one of the fifty states 
     or of a foreign country;
       ``(B) The corporation shall maintain an office of the 
     corporation on the premises licensed or to be licensed;
       ``(C) The corporation shall comply with all of the 
     requirements of the laws of the state or Indian tribe 
     pertaining to corporations in which the corporation is 
     incorporated;
       ``(D) The corporation shall maintain a ledger in the 
     principal office of the corporation which shall at all times 
     reflect the current ownership of every class of security 
     issued by the corporation and shall be available for 
     inspection by the Commission and authorized agents of the 
     Commission at all reasonable times without notice;
       ``(E) The corporation shall maintain all operating accounts 
     required by the Commission and shall notify the Commission of 
     the financial institution in which such operating accounts 
     are located;
       ``(F) The corporation shall include among the purposes 
     stated in its certificate of incorporation the conduct of 
     gaming operations and provide that the certificate of 
     incorporation includes all provisions required by this Act;
       ``(G)(1) If the corporation is not a publicly-traded 
     corporation, the corporation shall file with the Commission 
     such adopted corporate charter provisions as may be necessary 
     to establish the right of prior approval by the Commission 
     with regard to transfers of securities, shares, and other 
     interests in the applicant corporation; and
       ``(2) If the corporation is a publicly-traded corporation, 
     provide in its corporate charter that any securities of such 
     corporation are held subject to the condition that if a 
     holder thereof is found to be disqualified by the Commission 
     pursuant to the provisions of this Act, such holder shall 
     dispose of his interest in the corporation, provided that 
     nothing herein shall be deemed to require that any security 
     of such corporation bear any legend to this effect;
       ``(H) If the corporation is not a publicly-traded 
     corporation, the corporation shall establish to the 
     satisfaction of the Commission that appropriate charter 
     provisions create the absolute right of such non-publicly-
     traded corporations and companies to repurchase at the 
     market price or the purchase price, whichever is the 
     lesser, any security, share or other interest in the 
     corporation in the event that the Commission disapproves a 
     transfer in accordance with the provisions of this Act;
       ``(I) Any publicly-traded holding, intermediary, or 
     subsidiary company of the corporation, whether the 
     corporation is publicly traded or not, shall contain in its 
     corporate charter the same provisions required under 
     paragraph (H) for a publicly-traded corporation to be 
     eligible to apply for a license for the management of a 
     gaming operation; and
       ``(J) Any non-publicly-traded holding, intermediary or 
     subsidiary company of the corporation, whether the 
     corporation is publicly-traded or not, shall establish to the 
     satisfaction of the Commission that its charter provisions 
     are the same as those required under paragraphs (H) and (I) 
     for a non-publicly-traded corporation to be eligible to apply 
     for a license for the management of a gaming operation;
       ``(K) The provisions of this subsection shall apply with 
     the same force and effect with regard to applicants for a 
     license and licensees for the management of a gaming 
     operation which have a legal existence that is other than 
     corporate to the extent which is appropriate;
       ``(c) License for the Management of a Gaming Operation--
     Applicant Requirements.--
       ``(1) Any applicant for a license for the management of a 
     gaming operation must produce information, documentation and 
     assurances concerning the following qualification criteria--
       ``(A) Each applicant shall produce such information, 
     documentation and assurances concerning financial background 
     and resources as may be required to establish by clear and 
     convincing evidence the financial stability, integrity and 
     responsibility of the applicant, including but not limited to 
     bank references, business and personal income and 
     disbursement schedules, tax returns and other reports filed 
     with governmental agencies, and business and personal 
     accounting and check records and ledgers; and
       ``(B) Each applicant shall, in writing, authorize the 
     examination of all bank accounts and records as may be deemed 
     necessary by the Commission;
       ``(C)(1) Each applicant shall produce such information, 
     documentation and assurances as may be necessary to establish 
     by clear and convincing evidence the integrity of all 
     financial backers, investors, mortgagees, bond holders, and 
     holders of indentures, notes or other evidences of 
     indebtedness, either in effect or proposed, which bears any 
     relation to the proposal of the management of a gaming 
     operation submitted by the applicant or applicants, provided 
     that this section shall not apply to banking or other 
     licensed lending institutions and institutional investors;
       ``(2) Any such banking or licensed lending institution or 
     institutional investor shall, however, produce for the 
     Commission upon request any document or information which 
     bears any relation to the proposal for the management of a 
     gaming operation submitted by the applicant or applicants;
       ``(3) The integrity of financial sources shall be judged 
     upon the same standards as the applicant;
       ``(4) In addition, each applicant shall produce whatever 
     information, documentation or assurances as may be required 
     to establish by clear and convincing evidence the adequacy of 
     financial resources as to the completion of the proposal for 
     the management of the gaming operation;
       ``(D)(1) Each applicant shall produce such information, 
     documentation and assurances as may be required to establish 
     by clear and convincing evidence the applicant's good 
     character, honesty and integrity;
       ``(2) Such information shall include, without limitation, 
     information pertaining to family, habits, character, 
     reputation, criminal and arrest record, business activities, 
     financial affairs, and business, professional and personal 
     associates, covering at least the 10-year period immediately 
     preceding the filing of the application;
       ``(3) Each applicant shall notify the Commission of any 
     civil judgments obtained against any such applicant 
     pertaining to antitrust or security regulation laws of the 
     United States, or of any state, jurisdiction, province or 
     country;
       ``(4) In addition, each applicant shall produce letters of 
     reference from law enforcement agencies having jurisdiction 
     in the applicant's place of residence and principal place of 
     business, which letters of reference shall indicate that such 
     law enforcement agencies do not have any pertinent 
     information concerning the applicant, or if such law 
     enforcement agency does have information pertaining to the 
     applicant, shall specify what the information is;
       ``(5) If the applicant has managed gaming operations in a 
     jurisdiction which permits such activity, the applicant shall 
     produce letters of reference from the gaming or casino 
     enforcement or control agency which shall specify the 
     experiences of such agency with the applicant, his 
     associates, and the gaming operation, provided that if no 
     such letters are received within 60 days of request therefor, 
     the applicant may submit a statement under oath that he is or 
     was during the period such activities were conducted in good 
     standing with such gaming or casino enforcement or control 
     agency;
       ``(E)(1) Each applicant shall produce such information, 
     documentation and assurances as may be required to establish 
     by clear and convincing evidence that the applicant has 
     sufficient business ability and gaming management experience 
     as to establish the likelihood of creation and maintenance of 
     a successful, efficient gaming operation;
       ``(2) The applicant shall produce the names of all proposed 
     key employees of the proposed gaming operation as they become 
     known and a description of their respective or proposed 
     responsibilities, and a full description of security system 
     and management control proposed for the gaming operation and 
     related facilities;
       ``(F)(1) Each applicant shall produce such information, 
     documentation and assurances to enable the Commission to 
     comply with the National Environmental Policy Act, the 
     National Historic Preservation Act, and the Endangered 
     Species Act.
       ``(d) Additional Requirements.--
       ``(1) In addition to other information required by this 
     Act, a corporation applying for a license for the management 
     of a gaming operation shall provide the following 
     information--
       ``(A) the organization, financial structure and nature of 
     all businesses operated by the corporation;
       ``(B) the names and personal employment and criminal 
     histories of all officers, directors and principal employees 
     of the corporation;
       ``(C) the names of all holding, intermediary and subsidiary 
     companies of the corporation;
       ``(D) the organization, financial structure and nature of 
     all businesses operated by such of its holding, intermediary 
     and subsidiary companies as the Commission may require, 
     including names and personal employment and criminal 
     histories of such officers, directors and principal employees 
     of such corporations and companies as the Commission may 
     require;
       ``(E) The rights and privileges acquired by the holders of 
     different classes of authorized securities of such 
     corporations and companies as the Commission may require, 
     including the names, addresses and amounts held by all 
     holders of such securities;
       ``(F) The terms upon which securities have been or are to 
     be offered;
       ``(G) The terms and conditions of all outstanding loans, 
     mortgages, trust deeds, pledges or any other indebtedness or 
     security devices utilized by the corporation;
       ``(H) The extent of the equity security holding in the 
     corporation of all officers, directors and underwriters, and 
     their remuneration in the form of salary, wages, fees or 
     otherwise;
       ``(I) Names of persons other than directors and officers 
     who occupy positions specified by the Commission or whose 
     compensation exceeds an amount determined by the Commission, 
     and the amount of their compensation;
       ``(J) A description of all bonus and profit-sharing 
     arrangements;
       ``(K) Copies of all management and service contacts; and
       ``(L) A listing of stock options existing or to be created;
       ``(2) If a corporation applying for a license for the 
     management of a gaming operation is, or if a corporation 
     holding a license for the management of a gaming operation is 
     to become, a subsidiary, each holding company and each 
     intermediary company with respect thereto must, as a 
     condition of the said subsidiary acquiring or retaining such 
     license, as the case may be--
       ``(A) Qualify to do business is one of the fifty states or 
     with a federally-recognized Indian tribe; and
       ``(B) If it is a corporation, register with the Commission 
     and furnish the Commission with all the information required 
     of a corporate licensee as specified in subsections (A) 
     through (F) of this section and such other information as the 
     Commission may require; or
       ``(C) If it is not a corporation, register with the 
     Commission and furnish the Commission with such information 
     as the Commission may prescribe;
       ``(3) No corporation shall be eligible to hold a license 
     for the management of a gaming operation unless each officer; 
     each director, each person who directly or indirectly holds 
     any beneficial interest or ownership of the securities issued 
     by the corporation; any person who in the opinion of the 
     Commission has the ability to control the corporation or 
     elect a majority of the board of directors of that 
     corporation, other than a banking or other licensed lending 
     institution which makes a loan or holds a mortgage or other 
     lien acquired in the ordinary course of business; each 
     principal employee; and any lender, underwriter, agent, 
     employee of the corporation, or other person whom the 
     Commission may consider appropriate for approval or 
     qualification would, but for residence, individually be 
     qualified for approval as a gaming operation key employee 
     pursuant to the provisions of this Act;
       ``(4) No corporation which is a subsidiary shall be 
     eligible to receive or hold a licensing for the management of 
     a gaming operation unless each holding and intermediary 
     company with respect thereto--
       ``(A) If it is a corporation, shall comply with the 
     provisions of this section as if said holding or intermediary 
     company were itself applying for a license for the management 
     of a gaming operation, provided that the commission may waive 
     compliance with the provisions of this section on the part of 
     a publicly-traded corporation which is a holding company as 
     to any officer, director, lender, underwriter, agent or 
     employee thereof, or person directly or indirectly holding a 
     beneficial interest or ownership of the securities of such 
     corporation, where the Commission is satisfied that such 
     officer, director, lender, underwriter, agent or employee is 
     not significantly involved in the activities of the corporate 
     licensee, and in the case of security holders, does not have 
     the ability to control the publicly-traded corporation or 
     elect one or more directors thereof; or
       ``(B) If it is not a corporation, shall comply with the 
     provisions of this section as if said company were itself 
     applying for a license for the management of a gaming 
     operation;
       ``(5)(A) Any noncorporate applicant for a license for the 
     management of a gaming operation shall provide the 
     information required of this section in such form as may be 
     required by the Commission;
       ``(B) No such applicant shall be eligible to hold a license 
     for the management of a gaming operation unless each person 
     who directly or indirectly holds any beneficial interest or 
     ownership in the applicant, or who in the opinion of the 
     Commission has the ability to control the applicant, or whom 
     the Commission may consider appropriate for approval or 
     qualification, would individually be qualified for approval 
     as a key employee pursuant to the provisions of this Act;
       ``(6) Notwithstanding the provisions of this section, and 
     in the absence of a prima facie showing that there is any 
     cause to believe that the institutional investor may be found 
     unqualified, an institutional investor holding either--
       ``(A) under 10% of the equity securities of a holding or 
     intermediary companies of a licensee for the management of a 
     gaming operation, or
       ``(B) debt securities of a holding or intermediary 
     companies, or another subsidiary company of a holding or 
     intermediary companies which is related in any way to the 
     financing of the licensee for the management of a gaming 
     operation, where the securities represent a percentage of the 
     outstanding debt of the company not exceeding 20%, or a 
     percentage of any issue of the outstanding debt of the 
     company not exceeding 50%, shall be granted a waiver of 
     qualification if such securities are those of a publicly-
     traded corporation and its holdings of such securities were 
     purchased for investment purposes only and upon request by 
     the Commission, it files with the Commission a certified 
     statement to the effect that it has no intention of 
     influencing or affecting the affairs of the issuer, the 
     licensee for the management of a gaming operation or its 
     holding or intermediary companies, provided that it shall 
     be permitted to vote on matters put to the vote of the 
     outstanding security holders;
       ``(C) The Commission may grant a waiver of qualification to 
     an institutional investor holding a higher percentage of such 
     securities upon a showing of good cause and if the conditions 
     specified in this subsection are met;
       ``(D) Any institutional investor granted a waiver under 
     this subsection which subsequently determines to influence or 
     affect the affairs of the issuer shall provide not less than 
     30 days notice of such intent and shall file with the 
     Commission an application for qualification before taking any 
     action that may influence or affect the affairs of the 
     issuer, provided that it shall be permitted to vote on 
     matters put to the vote of the outstanding security holders;
       ``(E) If an institutional investor changes its investment 
     intent, or if the Commission finds reasonable cause to 
     believe that the institutional investor may be found 
     unqualified, no action other than divestiture shall be taken 
     by such investor with respect to its security holdings until 
     there has been compliance with the provisions of this Act 
     including the execution of a trust agreement;
       ``(F) The licensee for the management of a gaming operation 
     and its relevant holding, intermediary or subsidiary company 
     shall immediately notify the Commission of any information 
     about, or actions of, an institutional investor holding its 
     equity or debt securities where such information or action 
     may have an impact upon the eligibility of such institutional 
     investor for a waiver pursuant to this subsection;
       ``(7) If at any time the Commission finds that an 
     institutional investor holding any security of a holding or 
     intermediary company of a licensee for the management of a 
     gaming operation, or, where relevant, of another subsidiary 
     company of a holding or intermediary company of a licensee 
     for the management of a gaming operation which is related in 
     any way to the financing of the licensee for the management 
     of a gaming operation, fails to comply with the terms of this 
     section, or if at any time the Commission finds that, by 
     reason of the extent or nature of its holdings, an 
     institutional investor is in a position to exercise such a 
     substantial impact upon the controlling interests of a 
     licensee that qualification of the institutional investor is 
     necessary to protect the public interest, the Commission may, 
     in accordance with the provisions of this section of this 
     Act, take any necessary action to protect the public 
     interest, including requiring such an institutional investor 
     to be qualified pursuant to the provisions of this Act;
       ``(d) Licensing of Key Employees of Gaming Operations.--
       ``(1) No person may be employed as a key employee of a 
     class III gaming operation unless he is the holder of a valid 
     gaming operation key employee license issued by the 
     Commission;
       ``(2) Each applicant must, prior to the issuance of any 
     gaming operation key employee license, produce information, 
     documentation and assurances concerning the following 
     qualification criteria--
       ``(A) Each applicant for a gaming operation key employee 
     license shall produce such information, documentation and 
     assurances as may be required to establish by clear and 
     convincing evidence the financial stability, integrity and 
     responsibility of the applicant, including but not limited to 
     bank references, business and personal income and 
     disbursements schedules, tax returns and other reports filed 
     with governmental agencies, and business and personal 
     accounting and check records and ledgers;
       ``(B) In addition, each applicant shall, in writing, 
     authorize the examination of all bank accounts and records as 
     may be deemed necessary by the Commission;
       ``(C) Each applicant for a gaming operation key employee 
     license shall produce such information, documentation and 
     assurances as may be required to establish by clear and 
     convincing evidence the applicant's good character, honesty 
     and integrity;
       ``(D) Such information shall include, without limitation, 
     data pertaining to family, habits, character, reputation, 
     criminal and arrest record, business activities, financial 
     affairs, and business, professional and personal associates, 
     covering at least the 10-year period immediately preceding 
     the filing of the application;
       ``(E) Each applicant shall notify the Commission of any 
     civil judgments obtained against such applicant pertaining to 
     antitrust or security regulation laws of the United States or 
     of any state of any jurisdiction, province or country;
       ``(F) In addition, each applicant shall, upon request of 
     the Commission, produce letters of reference from law 
     enforcement agencies having jurisdiction in the applicant's 
     place of residence and principal place of business, which 
     letters of reference shall indicate that such law enforcement 
     agencies do not have any pertinent information concerning the 
     applicant, or if such law enforcement agency does have 
     information pertaining to the applicant, shall specify what 
     that information is;
       ``(G) If the applicant has been associated with gaming 
     operations in any capacity, position or employment in a 
     jurisdiction which permits such activity, the applicant 
     shall, upon request of the Commission, produce letters of 
     reference from the gaming or casino enforcement or control 
     agency, which shall specify the experience of such agency 
     with the applicant, his associates and his participation in 
     the gaming operations of that jurisdiction, provided that if 
     no such letters are received from the appropriate law 
     enforcement agencies within 60 days of the applicant's 
     request therefor, the applicant may submit a statement 
     under oath that he is or was during the period such 
     activities were conducted in good standing with such 
     gaming or casino enforcement or control agency; and
       ``(H) Each applicant shall produce such information, 
     documentation and assurances as may be required to establish 
     by clear and convincing evidence that the applicant has 
     sufficient business ability and gaming operation experience 
     as to establish the reasonable likelihood of success and 
     efficiency in the particular position involved;
       ``(3) The Commission shall endorse upon any license issued 
     hereunder the particular positions as defined by this Act or 
     by regulation which the licensee is qualified to hold;
       ``(4) The Commission shall deny a gaming operation key 
     employee license to any applicant who is disqualified on the 
     basis of the criteria contained in section 7(c)(4) of this 
     Act;
       ``(5) For the purposes of this section, gaming operation 
     security employees shall be considered key employees of a 
     gaming operation;
       ``(6) Key employees of a gaming operation directly related 
     to gaming operation shall include, but not be limited to, 
     boxmen, floormen, dealers or croupiers, cage personnel, count 
     room personnel, slot and slot booth personnel, credit and 
     collection personnel, gaming operation surveillance 
     personnel, and gaming operation security employees whose 
     employment duties require or authorize access to the gaming 
     operation facility;
       ``(e) Licensing and Registration of Gaming-Related 
     Contractors and Service Industries.--
       ``(1)(A) All gaming-related contractors and gaming service 
     industries offering goods or services which directly relate 
     to a gaming operation, including gaming equipment 
     manufacturers, suppliers and repairers, schools teaching 
     gaming and either playing or dealing techniques, and gaming 
     operation security services, shall be licensed in accordance 
     with the provisions of this Act prior to conducting any 
     business whatsoever with a gaming operation applicant or 
     licensee, its employees or agents, and in the case of a 
     school, prior to enrollment of any students or offering of 
     any courses to the public whether for compensation or not, 
     provided that upon a showing of good cause by a gaming 
     operation applicant or licensee for each business 
     transaction, the Commission may permit an applicant for a 
     gaming-related contractor or gaming service industry license 
     to conduct business transactions with such gaming operation 
     applicant or licensee prior to the licensure of that gaming-
     related contractor or gaming service industry applicant under 
     this subsection;
       ``(B)(i) In addition to the requirements of paragraph (A) 
     of this subsection, any gaming-related contractor or gaming 
     service industry intending to manufacture, sell, distribute 
     or repair gambling devices, other than antique slot machines, 
     shall be licensed in accordance with the provisions of this 
     Act prior to engaging in any such activities, provided that--
       ``(ii) upon a showing of good cause by a gaming operation 
     applicant or licensee for each business transaction, the 
     Commission may permit an applicant for a gaming-related 
     contractor or gaming service industry license to conduct 
     business transactions with the gaming operation applicant or 
     licensee prior to the licensure of that contractor or service 
     industry applicant under this subsection, and provided 
     further that--
       (iii) upon a showing of good cause by an applicant required 
     to be licensed as gaming-related contractor or gaming service 
     industry pursuant to this paragraph, the Commission may 
     permit the contractor or service industry applicant to 
     initiate the manufacture of gambling devices or engage in the 
     sale, distribution or repair of gambling devices with any 
     person other than a gaming operation applicant or licensee, 
     its employees or agents, prior to the licensure of that 
     contractor or service industry applicant under this 
     subsection;
       ``(2)(A) Each gaming-related contractor or gaming service 
     industry in subsection (1) of this section, as well as its 
     owners, management and supervisory personnel and other 
     principal employees must qualify under the standards 
     established for qualification of a gaming operation key 
     employee under this Act;
       ``(B) In addition, if the business or enterprise is a 
     school teaching gaming and either playing or dealing 
     techniques, each director, instructor, principal employee, 
     and sales representative employed thereby shall be licensed 
     under the standards established for qualification of a key 
     gaming operation employee under this Act, provided that 
     nothing in this subsection shall be deemed to require, in the 
     case of a public school district or a public institution of 
     higher education, the licensure or qualification of any 
     individuals except those instructors and other principal 
     employees responsible for the teaching of playing or dealing 
     techniques;
       ``(C) The Commission, in its discretion, may issue a 
     temporary license to an applicant for an instructor's license 
     upon a finding that the applicant meets the educational and 
     experimental requirements for such license, that the 
     issuance of a permanent license will be restricted by 
     necessary investigations, and that temporary licensing is 
     necessary for the operation of a gaming school;
       ``(3)(A) All gaming-related contractors and gaming service 
     industries not included in subsection (1) of this section 
     shall be licensed in accordance with rules of the Commission 
     prior to commencement or continuation of any business with a 
     gaming operation applicant or licensee or its employees or 
     agents;
       ``(B) Such gaming-related contractors and gaming service 
     industries, whether or not directly related to gaming 
     operations, shall include any person, entity or enterprise 
     contracting with gaming operation applicants or licensees or 
     their employees or agents;
       ``(C) The Commission may exempt any person or field of 
     commerce from the licensing requirements of this subsection 
     if the person or field of commerce demonstrates--
       ``(i) that it is regulated by a public agency or that it 
     will provide goods or services in insubstantial or 
     insignificant amounts or quantities, and
       ``(ii) that licensing is not deemed necessary in order to 
     protect the public interest or to accomplish the policies 
     established by this Act;
       ``(D) Upon granting an exemption or at any time thereafter, 
     the Commission may limit or place such restrictions thereupon 
     as it may deem necessary in the public interest, and shall 
     require the exempted person to cooperate with the Commission 
     and, upon request, to provide information in the same manner 
     as required of a gaming-related contractor or gaming service 
     industry licensed pursuant to this subsection, provided that 
     no exemption be granted unless the gaming-related contractor 
     or gaming service industry complies with the requirements of 
     this section of this Act.
       (8) Section 9 of the Act (25 U.S.C. 2708) is amended to 
     read as follows:

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

       ``(a) Class I Gaming.--Class I gaming on Indian lands is 
     within the exclusive jurisdiction of the Indian tribes and 
     shall not be subject to the provisions of this Act;
       ``(b) Class II Gaming.--(1) Any Class II gaming on Indian 
     lands shall continue to be within the jurisdiction of the 
     Indian tribes, but shall be subject to the provisions of this 
     Act;
       ``(2) An Indian tribe may engage in, or license and 
     regulate class II gaming on Indian lands within such tribe's 
     jurisdiction, if--
       ``(A) such Indian gaming is located within a State that 
     permits such gaming for any purpose by any person, 
     organization or entity;
       ``(B) such gaming is not otherwise specifically prohibited 
     on Indian lands by Federal law; and
       ``(C) the Class II gaming operation meets the requirements 
     of sections 7 and 9 of this Act;
       ``(3) The Commission shall insure that any class II gaming 
     operation on Indian lands meets the following requirements--
       ``(A) a separate license is issued by the Indian tribe for 
     each place, facility, or location on Indian lands at which 
     Class II gaming is conducted;
       ``(B) the Indian tribe has or will have the sole 
     proprietary interest and responsibility for the conduct of 
     any Class II gaming activity, unless the conditions of 
     subsection (3)(I) of this section apply;
       ``(C) net revenues from any Class II gaming activity are 
     not to be used for purposes other than--
       ``(i) to fund tribal government operations or programs;
       ``(ii) to provide for the general welfare of the Indian 
     tribe and its members;
       ``(iii) to promote tribal economic development;
       ``(iv) to donate to charitable organizations; or
       ``(v) to help fund operations of local government agencies;
       ``(D) annual outside audits of the gaming, which may be 
     encompassed within existing independent tribal audit systems, 
     are provided by the Indian tribal government to the 
     Commission;
       ``(E) all contracts for supplies, services, or concessions 
     for a contract amount in excess of $10,000 annually, except 
     contracts for professional legal or accounting services, 
     relating to such gaming shall be subject to such independent 
     audits and audit by the Commission;
       ``(F) the construction and maintenance of a Class II gaming 
     facility, and the operation of Class II gaming is conducted 
     in a manner which adequately protects the environment and the 
     public health and safety; and
       ``(G) there is an adequate system which--
       ``(i) ensures that background investigations are conducted 
     on primary management officials, key employees and persons 
     having a material involvement, either directly or indirectly, 
     in a licensed Class II gaming operation, and gaming-related 
     contractors associated with a licensed Class II gaming 
     operation and that oversight of such officials and their 
     management is conducted on an ongoing basis; and
       ``(ii) includes--
       ``(I) tribal licenses for persons involved in Class II 
     gaming operations, including but not limited to key 
     employees, gaming related contractors, gaming service 
     industries, and any person having a material involvement, 
     either directly or indirectly, with a licensed gaming 
     operation in accordance with Section 8 of this Act;
       ``(II) a standard whereby any person whose prior 
     activities, criminal record, if any, or reputation, habits, 
     and associations pose a threat to the public interest or to 
     the effective regulation of gaming, or create or enhance the 
     dangers of unsuitable, unfair, or illegal practices and 
     methods and activities in the conduct of gaming shall not be 
     eligible for employment; and
       ``(III) notification by the Indian tribal government to the 
     Commission of the results of such background investigation 
     before the issuance of any of such licenses;
       ``(H) Net revenues from any Class II gaming activities 
     conducted or licensed by any Indian tribal government may be 
     used to make per capita payments to members of the Indian 
     tribe only if--
       ``(i) the Indian tribe has prepared a plan to allocate 
     revenues to uses authorized by paragraph (3)(C) of this 
     section;
       ``(ii) the plan is approved by the Secretary as adequate, 
     particularly with respect to uses described in clause (i) or 
     (iii) of paragraph (3)(C) of this section;
       ``(iii) the interests of minors and other legally 
     incompetent persons who are entitled to receive any of the 
     per capita payments are protected and preserved and the per 
     capita payments are disbursed to the parents or legal 
     guardian of such minors or legal incompetents in such amounts 
     as may be necessary for the health, education, or welfare of 
     the minor or other legally incompetent person under a plan 
     approved by the Secretary and the governing body of the 
     Indian tribe; and
       ``(iv) the per capita payments are subject to federal 
     taxation and tribes notify members of such tax liability when 
     payments are made;
       ``(I)(i) A separate license is issued for any Class II 
     gaming operation owned by any person or entity other than the 
     Indian tribal government and conducted on Indian lands, and 
     such license includes the requirements set forth in the 
     subclauses of subparagraph (C)(i) and are at lest as 
     restrictive as those established by State law governing 
     similar gaming with the jurisdiction of the State within 
     which such Indian lands are located;
       ``(ii) No person or entity, other than the Indian tribal 
     government, shall be eligible to receive a tribal license to 
     own a Class II gaming operation conducted on Indian lands 
     within the jurisdiction of the Indian tribe if such person or 
     entity would not be eligible to receive a State license to 
     conduct the same activity within the jurisdiction of the 
     State;
       ``(iii) The provisions of subparagraph (i) of this 
     paragraph and the provisions of subparagraphs (B) and (C) of 
     subsection (3) shall not bar the continued operation of an 
     individually-owned Class II gaming operation that was 
     operating on September 1, 1986, if--
       ``(I) such gaming operation is licensed and regulated by an 
     Indian tribal government;
       ``(II) income to the Indian tribal government from such 
     gaming is used only for the purposes described in 
     paragraph (c)(3) of this subsection,
       ``(III) not less than 60 percent of the net revenues is 
     income to the licensing tribal government, and
       ``(IV) the owner of such gaming operation pays an 
     appropriate assessment to the Commission under section 15 for 
     regulation of such gaming;
       ``(iv) The exemption from application of this subsection 
     provided under this subparagraph may not be transferred to 
     any person or entity and shall remain in effect only so long 
     as the gaming operation remains within the same nature and 
     scope as operated on October 17, 1988;
       ``(v) The Commission shall maintain a list of each 
     individually-owned gaming operation to which clause (iii) 
     applies and shall publish such list in the Federal Register;
       ``(d)(1) License Revocation.--If, after the issuance of a 
     license by an Indian tribal government, reliable information 
     is received from the Commission indicating that any licensee 
     does not meet the standards established under section 8 and 
     the regulations promulgated by the Commission, the Indian 
     tribal government shall suspend such license and, after 
     notice and hearing, may revoke such license.
       (9) Section 10 of the Act (25 U.S.C. 2709) is amended to 
     read as follows:

     SEC. 10. CLASS III GAMING ON INDIAN LANDS.

       ``(a). Requirements for the Conduct of Class III Gaming on 
     Indian Lands.--
       ``(1) Class III gaming activities shall be lawful on Indian 
     lands only if such activities are-
       ``(A) authorized by a compact that:
       ``(i) is adopted by the governing body of the Indian tribe 
     having jurisdiction over such lands,
       ``(ii) meets the requirements of subsection (b) of this 
     section, and
       ``(iii) is approved by the Secretary;
       ``(B) located in a State where the requirements of this 
     section of the Act are satisfied, and the gaming activity is 
     determined to be eligible for inclusion in a compact in 
     accordance with the provisions of this section of the Act;
       ``(C) conducted in conformance with a compact entered into 
     by the Indian tribe under paragraph (3) that is in effect.
       ``(D) the Class III gaming operation meets the requirements 
     of Sections 7, 8, 10 and 11 of this Act.
       ``(2)(A) The governing body of an Indian tribe, in its sole 
     discretion, may adopt an ordinance or resolution revoking any 
     prior ordinance or resolution that authorized Class III 
     gaming on the Indian lands of the Indian tribe. Such 
     revocation shall render Class III gaming illegal on the 
     Indian lands of such Indian tribe.
       ``(B) The Indian tribe shall submit any revocation 
     ordinance or resolution described in subparagraph (A) to the 
     Chairman. The Chairman shall publish such ordinance or 
     resolution in the Federal Register and the revocation 
     provided by such ordinance or resolution shall take effect on 
     the date of such publication.
       ``(C) Notwithstanding any other provision of this 
     subsection--
       ``(i) any person or entity operating a Class III gaming 
     activity pursuant to this paragraph on the date on which an 
     ordinance or resolution described in subparagraph (A) that 
     revokes authorization for such Class III gaming activity is 
     published in the Federal Register may, during the 1-year 
     period beginning on the date on which such revocation 
     ordinance or resolution is published under subparagraph (B), 
     continue to operate such activity in conformance with the 
     compact entered into under paragraph (3) that is in effect; 
     and
       ``(ii) any civil action that arises before, and any crime 
     that is committed before, the close of such 1-year period 
     shall not be affected by such revocation ordinance or 
     resolution.
       ``(3)(A)(i) Any Indian tribe having jurisdiction over the 
     lands upon which a Class III gaming activity is to be 
     conducted may request the Secretary to enter into 
     negotiations for a compact.
       ``(ii) Such request shall be in writing and shall specify 
     the gaming activity or activities to be included in the 
     compact and within 30 days the Secretary shall determine if 
     any such requested activities should not be included in the 
     compact under the laws of the State in which the Indian tribe 
     is located in conformity with the standards set forth in 
     subparagraphs (C) and (D) of this subsection and shall so 
     notify the Indian tribe.
       ``(iii) Such negotiations shall be completed within 120 
     days after the expiration of the 60-day period in 
     subparagraph (B)(iii) of this subsection.
       ``(iv) Any compact negotiated under this paragraph shall be 
     effective upon its publication in the Federal Register by the 
     Secretary.
       ``(v) The Commission, pursuant to section 7, shall monitor, 
     regulate and license Class III gaming with respect to any 
     compact negotiated under this paragraph and published by the 
     Secretary in the Federal Register.
       ``(vi) Any compact negotiated under this paragraph shall be 
     for a fixed term of years, consistent with the purposes of 
     this Act.
       ``(vii) A tribal request for a change in a compact shall be 
     considered a request for purposes of this subsection.
       ``(B)(i) When an Indian tribe makes a request pursuant to 
     subparagraph (A), it shall also notify the State within which 
     the gaming activity is to be conducted.
       ``(ii) Such notice to the State shall include the specific 
     gaming activities which the Indian tribe is requesting that 
     the Secretary include in the compact.
       ``(iii) Within 60 days from such notification, the State 
     may request the Indian tribe to enter into negotiations for a 
     compact. The State and Indian tribe by mutual agreement may 
     extend the 60-day period.
       ``(iv) When a State requests an Indian tribe to negotiate a 
     compact within the designated time period, that request shall 
     toll the operation of subparagraph (A), and shall be deemed 
     to constitute a voluntary waiver of the sovereign immunity of 
     the State for the purposes of this Act.
       ``(C) Any compact negotiated under subparagraph (A) may 
     include provisions relating to--
       ``(i) the application of the criminal and civil laws and 
     regulations of the Indian tribe or the State that are 
     directly related to, and necessary for, the licensing and 
     regulation of such activity;
       ``(ii) the allocation of criminal and civil jurisdiction 
     between the State and the Indian tribe necessary for the 
     enforcement of such laws and regulations;
       ``(iii) the assessment by the State of such activities in 
     such amounts as are necessary to defray the costs of 
     regulating such activity;
       ``(iv) taxation by the Indian tribe of such activity in 
     amounts comparable to amounts assessed by the State for 
     comparable activities;
       ``(v) remedies for breach of contract;
       ``(vi) standards for the operation of such activity and 
     maintenance of the gaming facility, including licensing; and
       ``(vii) any other subjects that are reasonably related to 
     the operation of gaming activities, and the impact on tribal, 
     State, and local governments.
       ``(4) Except for any assessments for services agreed to by 
     an Indian tribe in compact negotiations, nothing in this 
     section shall be construed as conferring upon a State or any 
     of its political subdivisions the authority to impose any 
     tax, fee, charge or other assessment upon an Indian tribe, an 
     Indian gaming operation or the value generated therein, or 
     any person or entity authorized by an Indian tribe to engage 
     in a Class III gaming activity in conformity with the 
     provisions of this Act.
       ``(5) Nothing in this subsection shall impair the right of 
     an Indian tribe to regulate Class III gaming on its Indian 
     lands concurrently with the State and the Commission, except 
     to the extent that such regulation is inconsistent with, or 
     less stringent than, this Act or the laws and regulations 
     made applicable by any compact entered into by the Indian 
     tribe under paragraph (3) that is in effect.
       ``(6) The provisions of section 5 of the Act of January 2, 
     1951 (15 U.S.C. 1175) shall not apply to any gaming activity 
     conducted pursuant to a compact entered into after the 
     effective date of the Indian Gaming Regulatory Act Amendments 
     Act, but in no event shall this paragraph, as amended by such 
     Act, be construed as invalidating any exemption from section 
     5 under this Act prior to its enactment by the Indian Gaming 
     Regulatory Act Amendments Act of 1994, or under any compact, 
     or procedure in lieu of a compact, in effect on the date of 
     enactment of the Indian Gaming Regulatory Act Amendments Act.
       ``(7)(A) The United States district courts shall have 
     jurisdiction over--
       ``(i) any cause of action for a declaratory judgment 
     brought by an Indian tribe or a State pursuant to 
     subparagraph (C), or the review of any decision by the 
     Secretary with regard to the gaming activities which are 
     subject to inclusion in a compact or to resolve any dispute 
     pursuant to subparagraph (E) or (F);
       ``(ii) any cause of action initiated by a State or Indian 
     tribe to enjoin a Class III gaming activity located on Indian 
     lands and conducted in violation of any compact entered into 
     under paragraph (3) that is in effect; or
       ``(iii) any cause of action initiated by the Secretary to 
     enforce any provision of a compact.
       ``(B)(i) Where a State elects to negotiate a compact, 
     within 30 days after notice of the election, the State shall 
     notify the tribe if it determines that any gaming activity 
     requested is prohibited as a matter of State criminal law and 
     is not otherwise subject to negotiation under this Act.
       ``(ii) Following the State's notification to the tribe of 
     its determination, the parties shall have 30 days in which to 
     meet and confer to resolve any dispute regarding the State's 
     determination.
       ``(iii) Notwithstanding any declaratory judgment action 
     pending under subparagraph (C), a tribe and State may 
     negotiate and establish procedures for mediating any issue 
     not subject to the declaratory judgment action.
       ``(C) No later than 120 days after the State has notified 
     the tribe of its election to negotiate a compact, or such 
     longer period as may be agreed to in writing by the parties, 
     either party may initiate an action in an appropriate United 
     States district court for a declaration whether the disputed 
     gaming activity is subject to compact negotiation under this 
     Act. In any such declaratory action, the court shall declare 
     that the disputed gaming activity as a matter of Federal law 
     shall be the subject of negotiation if it finds that--
       ``(i) the disputed gaming activity is not prohibited as a 
     matter of State criminal law, or
       ``(ii) even if the disputed activity is prohibited as a 
     matter of State criminal law, the gaming activity meets one 
     or more of the following criteria:
       ``(I) Its principal characteristics are not distinguishable 
     from a gaming activity that is not prohibited by State 
     criminal law and there is no rational basis for 
     differentiating between the disputed gaming activity and the 
     activity not prohibited by the state.
       ``(II) State law permits the disputed gaming activity 
     subject to regulation.
       ``(III) As a matter of State law any person, organization, 
     or entity within the State may engage in the disputed gaming 
     activity for any purpose, except that the permitting of a 
     social gaming activity does not make that activity subject to 
     negotiations pursuant to this section after the date of the 
     enactment of the Indian Gaming Regulatory Act Amendments Act; 
     provided that this exception shall have no effect on the 
     continued validity of any compacts or procedures in lieu 
     thereof which are in effect on the date of enactment of the 
     Indian Gaming Regulatory Act Amendments Act.
       ``(D) In any determination of whether a gaming activity is 
     subject to compact negotiation under this Act, the following 
     categories of gaming activities are distinguishable from each 
     other:
       ``(i) gambling device;
       ``(ii) lottery game;
       ``(iii) banking game;
       ``(iv) parimutuel wagering;
       ``(v) other games of chance.
       ``(E) Where the State elects to negotiate a compact under 
     this Act, the negotiation shall be completed within 120 days 
     after the expiration of the 60-day period in paragraph 
     (3)(B)(iii) of this subsection, unless the State and Indian 
     tribe by mutual agreement extend the time period.
       ``(F) The Secretary in consultation with the Indian tribes 
     and the States shall develop a panel of independent mediators 
     which shall be periodically updated. If after 120 days from a 
     State's request for negotiations or a final declaratory 
     judgment not subject to further review, the State and Indian 
     tribe have not agreed to recommend a compact to the 
     Secretary, the State and Indian tribe shall enter into 
     compulsory mediation, pursuant to the following procedures:
       ``(i) The Secretary shall provide the State and Indian 
     tribe with a list of names of 3 mediators randomly selected 
     from the panel of independent mediators. The State and Indian 
     tribe each shall remove a different 1 of the 3 from the list, 
     and the remaining mediator shall conduct the mediation.
       ``(ii) The mediator shall attempt to achieve a compact 
     within a 60-day period, which period may be extended at the 
     agreement of the State and Indian tribe.
       ``(iii) If compulsory mediation fails, the State and Indian 
     tribe shall submit their last best offer to the mediator, who 
     shall evaluate the offers under the terms of the Act and 
     recommend a compact to the Secretary, except that by mutual 
     agreement the parties may substitute either compulsory 
     arbitration, or a decision by the Secretary instead of a 
     mediator's recommendation.
       ``(iv) The recommended compact also shall include such 
     provisions which in the opinion of the mediator or arbitrator 
     best meet the objectives of this Act and are consistent with 
     any declaratory judgment issued pursuant to subparagraph (C).
       ``(G) If the parties or the mediator or arbitrator pursuant 
     to this paragraph recommend a compact to the Secretary, the 
     Secretary shall approve such compact and shall publish it in 
     the Federal Register; except that the compact shall not be 
     approved by the Secretary unless it contains provisions for 
     internal controls which are consistent with this Act and the 
     regulations promulgated by the Commission, including, without 
     limitation, provisions relating to cash flow transactions, 
     recordkeeping and reporting, accounting, security, licensing 
     and training of employees, and related matters. The compact 
     also shall not be approved if it violates--
       ``(i) any provision of this Act or the regulations 
     promulgated by the Commission;
       ``(ii) any other provision of Federal law that does not 
     relate to jurisdiction over gaming on Indian reservations; or
       ``(iii) the trust obligations of the United States to 
     Indians.
       ``(H) Except for an appeal under subchapter II of chapter 
     5, of title 5, United States Code, by an Indian tribe or 
     State on the publication of a compact, publication of a 
     compact pursuant to this subsection which permits a form of 
     Class III gaming shall, for the purposes of this Act, be 
     conclusive evidence that such Class III gaming is an activity 
     subject to negotiations under the laws of the State where the 
     gaming is to be conducted, in any matter under consideration 
     by the Commission or a Federal court.
       ``(I) If the Secretary does not approve or disapprove a 
     compact under this subsection before the date that is 45 days 
     after the date that the compact is submitted to the Secretary 
     for approval, or after the expiration of the 180-day period 
     with respect to the last compact proposal in subparagraph 
     (3), the compact shall be considered approved, but only to 
     the extent that the compact is consistent with the provisions 
     of this Act and any regulations promulgated by the 
     Commission.
       ``(J) The Secretary shall publish in the Federal Register 
     notice of any compact that has been approved, or considered 
     to have been approved, under this paragraph.
       ``(8)(A) The Secretary is authorized to approve any compact 
     entered into between an Indian tribe and a State governing 
     gaming on Indian lands of such Indian tribe.
       ``(B) The Secretary may disapprove a compact described in 
     subparagraph (A) only if such compact violates--
       ``(i) any provision of this Act or the regulations 
     promulgated by the Commission;
       ``(ii) any other provision of Federal law that does not 
     relate to jurisdiction over gaming on Indian lands, or
       ``(iii) the trust obligations of the United States to 
     Indians.
       ``(C) If the Secretary does not approve or disapprove a 
     compact described in subparagraph (A) before the date that is 
     45 days after the date on which the compact is submitted to 
     the Secretary for approval, the compact shall be considered 
     to have been approved by the Secretary, but only to the 
     extent the compact is consistent with the provisions of this 
     Act and the regulations promulgated by the Commission.
       ``(D) The Secretary shall publish in the Federal Register 
     notice of any compact that is approved, or considered to have 
     been approved, under this paragraph.
       ``(b) Effect of Amendments.--Class III gaming activities 
     that are as a matter of Federal law, lawful in any 
     jurisdiction on the date of enactment of the Indian Gaming 
     Regulatory Act Amendments Act of 1994, shall, notwithstanding 
     any provisions of this Act, remain lawful for purposes of 
     section 10.
       (10) Section 11 of the Act (25 U.S.C. 2710) is amended to 
     read as follows:

     SEC. 11. REVIEW OF CONTRACTS.

       ``(a) Contracts Included.--The Commission shall review and 
     approve or disapprove--
       ``(1) any management contract for the operation and 
     management of any gaming activity that an Indian tribe may 
     engage in under the Act; and
       (2) gaming-related contracts
       ``(b) Management Contract Requirements.--The Commission 
     shall approve any management contract between an Indian tribe 
     and a person or entity licensed by an Indian tribe or the 
     Commission which is entered into pursuant to this Act only if 
     it determines that the contract provides for--
       ``(1) adequate accounting procedures that are maintained 
     and for verifiable financial reports that are prepared by or 
     for the governing body of the Indian tribe on a monthly 
     basis;
       ``(2) access to the daily gaming operations by appropriate 
     officials of the Indian tribe who shall have the right to 
     verify the daily gross revenues and income derived from any 
     gaming activity;
       ``(3) a minimum guaranteed payment to the Indian tribe that 
     has preference over the retirement of any development and 
     construction costs;
       ``(4) an agreed upon ceiling for the repayment of any 
     development and construction costs;
       ``(5) grounds and mechanisms for the termination of the 
     contract, but any such termination shall not require the 
     approval of the Commission; and
       ``(6) such other provisions as the Commission deems 
     necessary as provided for in regulations promulgated by the 
     Commission.
       ``(c) Maximum Terms and Fees for Management Contracts.--The 
     Commission may approve a management contract providing for a 
     fee of up to 40 percent of net revenues from an Indian gaming 
     activity determined in accordance with generally accepted 
     accounting principles and a term of up to ten years, pursuant 
     to regulations to be promulgated by the Commission. Such 
     regulations shall take into consideration the nature of the 
     management services being provided, the capital investment 
     being made, the income projections for the particular gaming 
     activity, and any other factors the Commission deems 
     relevant.
       ``(d) Gaming-Related Contract Requirements.--The Commission 
     shall approve a gaming related contract between an Indian 
     tribe and a person or entity licensed by the Commission 
     which is entered into pursuant to this Act only if it 
     determines that the contract provides for--
       ``(1) grounds and mechanisms for termination of the 
     contract, but such termination shall not require the approval 
     of the Commission; and
       ``(2) such other provisions as the Commission deems 
     necessary as provided for in regulations promulgated by the 
     Commission.
       ``(e) Time Period for Review.--By no later than the date 
     that is 180 days after the date on which a management 
     contract or other gaming-related contract is submitted to the 
     Commission for approval, the Commission shall approve or 
     disapprove such contract on its merits. The Commission may 
     extend the 180-day period by not more than 90 days if the 
     Commission notifies the Indian tribe in writing of the reason 
     for the extension of time. The Indian tribe may bring an 
     action in a Federal district court to compel action by the 
     Commission if a contract has not been approved or disapproved 
     within the period required by this subsection.
       ``(f) Contract Modifications and Void Contracts.--The 
     Commission, after notice and hearing, shall have the 
     authority to require appropriate contract modifications or 
     may void any contract if it determines that any of the 
     provisions of this Act have been violated.
       ``(g) Interests in Real Property.--No contract regulated by 
     this Act shall transfer or, in any other manner, convey any 
     interest in land or other real property, unless specific 
     statutory authority exists and such transfer or conveyance is 
     clearly specified in the contract.
       ``(h) Authority of the Secretary.--The authority of the 
     Secretary under section 2103 of the Revised Statutes (25 
     U.S.C. 81) does not extend to any contracts which are 
     regulated pursuant to this Act.
       ``(i) Disapproval of Contracts.--The Commission shall not 
     approve any contract if it determines that--
       ``(1) any person having a direct financial interest in, or 
     management responsibility for, such contract, and, in the 
     case of a corporation, those individuals who serve on the 
     board of directors of such corporation and each of its 
     stockholders who hold (directly or indirectly) 10 percent or 
     more of its issued and outstanding stock--
       ``(A) is an elected member of the governing body of the 
     Indian tribe which is the party to the contract;
       ``(B) has been or subsequently is convicted of any felony 
     or gaming offense;
       ``(C) has knowingly and willfully provided materially 
     important false statements or information to the Commission 
     or the Indian tribe pursuant to this Act or has refused to 
     respond to questions propounded by the Commission; or
       ``(D) has been determined to be a person whose prior 
     activities, criminal record, if any, or reputation, habits, 
     and associations pose a threat to the public interest or to 
     the effective regulation and control of gaming, or create or 
     enhance the dangers of unsuitable, unfair, or illegal 
     practices, methods, and activities in the conduct of gaming 
     or the carrying on of the business and financial arrangements 
     incidental thereto;
       ``(2) the contractor has, or has attempted to, unduly 
     interfere or influence for its gain or advantage any decision 
     or process of tribal government relating to the gaming 
     activity;
       ``(3) the contractor has deliberately or substantially 
     failed to comply with the terms of the contract; or
       ``(4) a trustee, exercising the skill and diligence that a 
     trustee is commonly held to, would not approve the contract.
       ``(11) Section 12 of the Act (25 U.S.C. 2711) is amended as 
     read as follows:

     ``SEC. 12. REVIEW OF EXISTING COMPACTS AND CONTRACTS; INTERIM 
                   AUTHORITY.

       ``(a) Review of Existing Compacts.--(1) At any time after 
     the Commission authorized by the Indian Gaming Regulatory Act 
     Amendments Act has been sworn in and regulations have been 
     promulgated for the implementation of the Act as amended, the 
     Commission shall notify each Indian tribe and state which, 
     prior to the enactment of the Indian Gaming Regulatory Act 
     Amendments Act, entered into a compact that was approved by 
     the Secretary, that the compact must be submitted to the 
     Commission for its review within 60 days of such 
     notification. Any such compact shall be valid under this Act 
     and shall remain in full force and effect in accordance with 
     its terms, unless the Commission determines that the 
     regulatory and licensing provisions of the compact fail to 
     meet the requirements of this Act and any regulations 
     promulgated by the Commission.
       ``(2) If the Commission should determine that a compact 
     fails to meet the regulatory and licensing requirements of 
     this Act and any regulations promulgated by the Commission, 
     then the Commission shall so notify the Indian tribe and the 
     State and the Commission shall provide for the direct 
     regulation and licensing of the gaming activities authorized 
     by such compact pursuant to this Act until such time as the 
     Indian tribe or the Indian tribe and the State have developed 
     regulations and licenses to govern the gaming activity which 
     meet or exceed the requirements imposed by this Act and any 
     regulations promulgated by the Commission.
       ``(b) Review of Existing Contracts.--(1) At any time after 
     the Commission authorized by the Indian Gaming Regulatory Act 
     Amendments Act is sworn in and promulgated regulations for 
     the implementation of the Act as amended, the Commission 
     shall notify each Indian tribe and management contractor who, 
     prior to the enactment of the Indian Gaming Regulatory Act 
     Amendments Act, entered into a management contract that was 
     approved by the Secretary, that such contract, including all 
     collateral agreements relating to the gaming activity, must 
     be submitted to the Commission for its review within 60 days 
     of such notification. Any such contract shall be valid under 
     this Act, unless it is disapproved by the Commission under 
     this section.
       ``(2)(A) Within 180 days after the submission of a 
     management contract, including all collateral agreements, 
     pursuant to this section, the Commission shall subject such 
     contract to the requirements and procedures under section 11 
     of this Act.
       ``(B) If the Commission determines that a management 
     contract submitted under this section meets the requirements 
     of section 11, and the management contractor obtains all of 
     the required licenses, the Commission shall approve the 
     management contract.
       ``(C) If the Commission determines that a contract 
     submitted under this section does not meet the requirements 
     of section 11, then the Commission shall provide written 
     notification to the parties to such contract of the necessary 
     modifications and the parties shall have 180 days to make the 
     modifications.
       ``(c) Interim Authority of the National Indian Gaming 
     Commission.--Notwithstanding any other provision of this Act, 
     the Secretary and the Chairman and the associate members of 
     the National Indian Gaming Commission who are holding office 
     on the date of enactment of the Indian Gaming Regulatory Act 
     Amendments Act shall continue to exercise those 
     authorities vested in them by the Act until such time as 
     the members of the Commission authorized by the Act as 
     amended are sworn into office. The Commission authorized 
     by the Act as amended shall exercise all of the authority 
     conferred on it by the Act as amended and shall enforce 
     all of the regulations previously promulgated under the 
     Act until the same are revised or superseded by 
     regulations promulgated by the Commission to implement the 
     Act as amended.
       (12) Section 13 of the Act (25 U.S.C. 2712) is repealed.
       (13) Section 14 of the Act (25 U.S.C. 2713) is redesignated 
     as section 13 and is amended to read as follows:

     ``SEC. 13. CIVIL PENALTIES.

       ``(a) Amount.--Any person who commits any act or causes to 
     be done any act that violates any provision of this Act or 
     the rules or regulations promulgated thereunder, or omits to 
     do any act or causes to be omitted any act that is required 
     by any provision or such rule or regulation shall be subject 
     to a civil penalty not to exceed $50,000 per day for each 
     such violation.
       ``(b) Assessment and Collection.--Any civil penalty under 
     this section shall be assessed by the Commission and 
     collected in a civil action brought by the Attorney General 
     on behalf of the United States. Before referral of civil 
     penalty claims to the Attorney General, civil penalties may 
     be compromised by the Commission after affording the person 
     charged with a violation of this Act, or the rules or 
     regulations promulgated by the Commission an opportunity to 
     present views and evidence in support thereof to establish 
     that the alleged violation did not occur. In determining the 
     amount of such penalty, the Commission shall take into 
     account the nature, circumstances, extent, and gravity of the 
     violation committed and, with respect to the person found to 
     have committed such violation, the degree of culpability, any 
     history of prior violations, ability to pay, the effect on 
     ability to continue to do business, and such other matters as 
     justice may require.
       ``(c) Temporary Closures.--(1) The Commission may order the 
     temporary closure of all or part of an Indian gaming 
     operation for substantial violations of the provisions of 
     this Act or rules or regulations promulgated by the 
     Commission.
       ``(2) Not later than 30 days after the issuance of an order 
     of temporary closure, the Indian tribe or the individual 
     owner of a gaming operation shall have the right to request a 
     hearing before the Commission to determine whether such order 
     should be made permanent or dissolved. A hearing shall be 
     conducted within 30 days after the request for a hearing and 
     a final decision shall be rendered 30 days after the 
     completion of the hearing.
       (14) Section 15 of the Act (25 U.S.C. 2714) is redesignated 
     as section 14 and is amended to read as follows:

     ``SEC. 14. JUDICIAL REVIEW.

       ``Decisions made by the Commission pursuant to sections 7, 
     8, 9, 10, 11, 12, and 13 shall be final agency decisions for 
     purposes of appeal to the appropriate Federal district court 
     pursuant to chapter 7 of title 5.
       (15) Section 16 of the Act (25 U.S.C. 2715) is repealed.
       (16) Section 17 of the Act (25 U.S.C. 2716) is repealed.
       (17) Section 18 of the Act (25 U.S.C. 2717) is redesignated 
     as section 15 and is amended to read as follows:

     ``SEC. 15. COMMISSION FUNDING.

       ``(a) Annual Fees.--(1) The Commission shall establish a 
     schedule of fees to be paid to the Commission annually by 
     each Class II and Class III gaming activity that is regulated 
     by this Act.
       ``(2) The rate of the fees imposed under the schedule 
     established under paragraph (1) shall be not less than 0.5 
     percent nor more than 2 percent of the gross revenues of each 
     gaming operation regulated by this Act.
       ``(3) The Commission, by a vote of a majority of its 
     members, shall annually adopt the rate of the fees authorized 
     by this section which shall be payable to the Commission on a 
     monthly basis.
       ``(4) The fees to be paid by a gaming operation may be 
     adjusted downward by the Commission to the extent that 
     regulatory functions are performed by the tribe or the tribe 
     and a state, pursuant to regulations promulgated by the 
     Commission.
       ``(5) Failure to pay the fees imposed under the schedule 
     established under paragraph (1) shall, subject to the 
     regulations of the Commission, be grounds for revocation of 
     the approval of the Commission of any license required under 
     this Act for the operation of gaming activities.
       ``(6) To the extent that revenue derived from fees imposed 
     under the schedule established under paragraph (1) are not 
     expended or committed at the close of any fiscal year, such 
     surplus funds shall be credited to each gaming activity on a 
     pro rata basis against such fees imposed for the succeeding 
     year.
       ``(7) For purposes of this section, gross revenue shall 
     constitute the annual total amount of money wagered, less any 
     amounts paid out as prizes or paid for prizes awarded and 
     less allowance for amortization of capital expenditures for 
     structures.
       ``(b) Reimbursement of Costs.--The Commission is authorized 
     to assess any applicant, except the governing body of an 
     Indian tribe, for any license required pursuant to this 
     Act for the actual costs of conducting all reviews and 
     investigations necessary to determine whether a license 
     should be granted or denied pursuant to this Act.
       ``(c)(1) The Commission, in conjunction with the fiscal 
     year of the United States, shall adopt an annual budget for 
     the expenses and operation of the Commission.
       ``(2) The budget of the Commission may include a request 
     for appropriations as authorized by section 16 of this Act.
       ``(3) A request for appropriations pursuant to paragraph 
     (2) shall be submitted by the Commission directly to the 
     Congress beginning in the first full fiscal year after the 
     date of enactment of the Indian Gaming Regulatory Act 
     Amendments Act.
       (18) Section 19 of the Act (25 U.S.C. 2718) is redesignated 
     as section 16 and is amended to read as follows:

     ``SEC 16. AUTHORIZATION OF APPROPRIATIONS.

       ``Subject to the provisions of section 15 of this Act, 
     there are hereby authorized to be appropriated and to remain 
     available until expended, $5,000,000 to provide for the 
     operation of the Commission for fiscal years 1996, 1997 and 
     1998.
       (19) Section 20 of the Act (25 U.S.C. 2719) is redesignated 
     as section 17 and is amended to read as follows:

     ``SEC. 17. GAMING ON LANDS ACQUIRED AFTER ENACTMENT OF THIS 
                   ACT.

       ``(a) Gaming Proscribed on Lands Acquired in Trust.--Except 
     as provided in subsection (b), gaming regulated by this Act 
     shall not be conducted on lands acquired by the Secretary in 
     trust for the benefit of an Indian tribe after the date of 
     enactment of this Act unless--
       ``(1) such lands are located within or contiguous to the 
     boundaries of the reservation of the Indian tribe on the date 
     of enactment of this Act; or
       ``(2) the Indian tribe has no reservation on the date of 
     enactment of this Act and--
       ``(A) such lands are located in Oklahoma and
       ``(i) are within the boundaries of the Indian tribe's 
     former reservation, as defined by the Secretary, or
       ``(ii) are contiguous to other land held in trust or 
     restricted status by the United States for the Indian tribe 
     in Oklahoma; or
       ``(B) such lands are located in a State other than Oklahoma 
     and are within the Indian tribe's last recognized reservation 
     within the State or States within which such Indian tribe is 
     presently located.
       ``(b) Exceptions.--Subsection (a) will not apply when--
       ``(1) the Secretary, after consultation with the Indian 
     tribe and a review of the recommendations, if any, of the 
     Governor of the State in which such lands are located, and 
     any other State and local officials, including officials of 
     other Indian tribes or adjacent States, determines that a 
     gaming establishment would be in the best interest of the 
     Indian tribe and its members, and would not be detrimental to 
     the surrounding community; or
       ``(2) lands are taken in trust as part of--
       ``(A) a settlement of a land claim,
       ``(B) the initial reservation of an Indian tribe 
     acknowledged by the Secretary under the Federal 
     acknowledgment process, or
       ``(C) the restoration of lands for an Indian tribe that is 
     restored to Federal recognition.
       ``(3) Subsection (a) shall not apply to--
       ``(A) any lands involved in the trust petition of the St. 
     Croix Chippewa Indians of Wisconsin that is the subject of 
     the action filed in the United States District Court for the 
     District of Columbia entitled St. Croix Chippewa Indians of 
     Wisconsin v. United States, Civ. No. 86-2278, or
       ``(B) the interests of the Miccosukee Tribe of Indians of 
     Florida in approximately 25 contiguous acres of land, more or 
     less, in Dade County, Florida, located within one mile of the 
     intersection of State Road Numbered 27 (also known as Krome 
     Avenue) and the Tamiami Trail.
       ``(c) Authority of the Secretary.--Nothing in this section 
     shall affect or diminish the authority and responsibility of 
     the Secretary to take land into trust.
       ``(d) Application of the Internal Revenue Code.--(1) The 
     provisions of the Internal Revenue Code of 1986 (including 
     sections 1441, 3402(q), 6041, and chapter 35 of such Code) 
     concerning the reporting and withholding of taxes with 
     respect to the winnings from gaming or wagering operations 
     shall apply to Indian gaming operations conducted pursuant to 
     this Act, or under a compact entered into under Section 10 of 
     this Act that is in effect, in the same manner as such 
     provisions apply to State gaming and wagering operations, and 
     any exemptions allowed to States from taxation of such gaming 
     or wagering operations shall be allowed to Indian tribes.
       ``(2) The provisions of section 6050I of the Internal 
     Revenue Code of 1986 shall apply to an Indian gaming 
     establishment not designated by the Secretary of the Treasury 
     as a financial institution pursuant to chapter 53 of title 
     31, United States Code.
       ``(3) The provisions of this subsection shall apply 
     notwithstanding any other provision of law enacted before, 
     on, or after the date of enactment of this Act unless such 
     other provision of law specifically cites this subsection.
       (20) Section 21 of the Act (25 U.S.C. 2720) is redesignated 
     as section 18.
       (21) Section 22 of the Act (25 U.S.C. 2721) is redesignated 
     as section 19.
       (22) Section 23 of the Act is redesignated as section 20.
       (23) Section 24 of the Act is redesignated as section 21.
       (24) At the end of the Act, add the following new section 
     22:
       ``Sec. 22. Section 5312(a)(2) of title 31, United States 
     Code, is amended--
       (1) by redesignating subparagraphs (X) and (Y) as 
     subparagraphs (Y) and (Z) respectively; and
       (2) by inserting after subparagraph (W) the following new 
     subparagraph:
       ``(X) an Indian gaming establishment:''.
  Mr. WELLSTONE. Mr. President, let me commend my two colleagues, the 
Senator from Hawaii and the Senator from Arizona.
  I am honored to serve on the Select Committee on Indian Affairs. 
There simply are not two Senators who are more committed to Indian 
people in this country, and they are dealing with an extremely 
difficult issue.
  I appreciate their leadership. I am going to carefully examine this, 
and I hope to be able to work with them and be part of this effort.
  I thank them and their staffs for really very, very important work.
                                 ______

      By Mr. BINGAMAN (for himself, Mrs. Boxer, Mr. DeConcini, and Mrs. 
        Hutchison):
  S. 2231. A bill to amend the Federal Water Pollution Control Act 
(commonly known as the ``Clean Water Act'') to authorize appropriations 
for each of fiscal years 1994 through 2001 for the construction of 
wastewater treatment works to provide water pollution control in or 
near the United States-Mexico border area, and for other purposes; to 
the Committee on Environment and Public Works.
                                 ______

      By Mr. BINGAMAN (for himself and Mr. DeConcini) (by request):
  S. 2232. A bill to amend the Federal Water Pollution Control Act to 
authorize appropriations for each of fiscal years 1994 through 1998 for 
the construction of wastewater treatment works to serve United States 
colonias by providing water pollution control in the vicinity of the 
international boundary between the United States and Mexico, and for 
other purposes; to the Committee on Environment and Public Works.


                 clear water act amendment legislation

  Mr. BINGAMAN. Mr. President, today I am introducing legislation to 
amend the Clean Water Act. I believe this bill is particularly 
important because it follows through on a critical commitment. That is 
a commitment that convinced many of my colleagues in the Senate to 
ultimately pass the North American Free-Trade Agreement. This pledge 
was to ensure the cleanup and future preservation of the environment 
along the United States-Mexico border--an area already suffering from a 
lack of infrastructure which is needed to provide the basic level of 
protection to human health and the environment.
  The legislation I am introducing today--the United States-Mexico 
Border Water Pollution Control Act--will authorize funding for the 
specific construction of international wastewater treatment facilities 
in the vicinity of the United States-Mexico border.
  Mr. President, the United States-Mexico border stretches 2,000 miles 
and consists of over 9 million people living within 65 miles of that 
border. Rapid population growth and industrialization in the border 
cities has overwhelmed existing wastewater, water supply, and solid 
waste infrastructure. Untreated domestic and industrial sewage 
currently flows north to the United States and into the Rio Grande 
River. Thousands of residents lack safe drinking water and adequate 
solid waste disposal facilities.
  The Federal Government must meet NAFTA's promise that bilateral 
cooperation and funding of environmental cleanup projects will be a top 
priority. The NAFTA agreement establishes a new environmental 
infrastructure which gives United States-Mexico border communities a 
much greater role in determining their needs and how to fill them. 
Specifically, the NAFTA agreement establishes the Border Environmental 
Cooperation Commission [BECC]--which will assist border states and 
local communities to coordinate, design and finance environmental 
infrastructure projects with a crossborder impact.
  The BECC will have a binational board of directors comprising of five 
members from each country. The U.S. members will consist of the 
Administrator of the Environmental Protection Agency, the Commissioner 
of the International Boundary and Water Commission, and three other 
border representatives. The BECC will include an advisory council with 
nine members from each country.
  The main purposes of this organization is to help find the financing 
for high priority border projects. However, the Environmental 
Protection Agency will have to provide initial grants for wastewater 
projects. Mexico and the United States have each committed to provide 
$700 million in Federal grants over 7 to 10 years.
  While the President has requested $100 million for fiscal year 1995 
for border infrastructure funding, EPA must have congressional 
authorization to receive funding. The legislation I am introducing 
today would provide the needed authorization.
  I want to make clear that while this funding is for binational 
projects, U.S. citizens will realize substantial benefits from 
potential border infrastructure improvements. About 6 million people 
live in metropolitan areas along the United States-Mexico border. This 
population is critically impacted by water pollution coming across the 
border from Mexico in areas such as the Tijuana River and New River in 
California, the Santa Cruz River in Arizona, and the Rio Grande in 
Texas and my home State of New Mexico. By investing in water pollution 
control in these areas, there is a direct and important benefit to U.S. 
citizens in terms of health protection, crop protection, and improved 
recreational benefits and increased property values.
  I also want to stress how important the authorization of the BECC is 
for the entire population of the country. The United States has a 
strong competitive advantage for providing equipment, instrumentation 
and professional services for the construction of Mexico wastewater 
facilities along the border. With a potential need of almost $8 billion 
in border water-related facilities over the next decade, up to $2 
billion of business could be generated in U.S. products and services. 
United States jobs will be generated in the equipment manufacturing and 
professional services sectors which are found in almost all 50 States.
  For example, the Flyght Corp. which manufactures pumps in Norwalk, 
CT, supplies pumps for all the International Boundary Water Commission 
projects. In another border project, the concession was granted to the 
U.S. Filter Corp., which has manufacturing, processing, and assembling 
facilities located in Iowa, New Jersey, Minnesota, the State of 
Washington, Illinois, and Pennsylvania. Most pump manufacturers are 
located in the Northeast United States and in Midwestern States such as 
Wisconsin, Michigan, Kansas, Missouri, and Indiana. With the passage of 
this legislation and the authorization of the BECC, U.S. companies all 
over the country stand to benefit.
  Specifically, the bill I am introducing today would allow EPA to 
provide financial or other assistance to the Border Environment 
Cooperation Commission, the International Boundary and Water 
Commission, the United States and Mexico, and any appropriate Federal 
Agency, State, or local governmental entity for the design and 
construction of wastewater treatment facilities in the vicinity of the 
United States-Mexico border.
  Mr. President, this bill authorizes activities that are good for the 
environment along the United States-Mexico border and good for the 
economy of the entire United States.
  I want to thank EPA Administrator Carol Browner for her leadership in 
assuring the administration's commitment that NAFTA would provide the 
needed infrastructure to cleanup and protect the environment of this 
rapidly growing area.
  I look forward to working with my colleagues in the Senate to pass 
this important legislation.
  Mr. President, I would also like to take this opportunity to 
introduce a bill on behalf of the administration. This legislation--the 
U.S. Colonias Water Pollution Control Act--would authorize funding for 
domestic wastewater facilities for colonias in States along the United 
States-Mexico border.
  Mr. President, last July I introduced legislation S. 1286 the 
Colonias Wastewater Treatment Act of 1993 that would provide 
desperately needed funding to these U.S. communities. The bill I have 
been asked to introduce today differs from mine in the amount of 
funding a State is required to contribute. I am concerned about the 
State match requirement and have shared this with the Environmental 
Protection Agency. I am pleased that EPA Administrator Carol Browner 
has stated she is open to working this issue out so that the affected 
border States like my home State of New Mexico can participate in the 
great program. I look forward to working with the EPA and the other 
border States--Arizona, Texas, and California to reach a compromise on 
this important issue.
  Mr. President, I ask unanimous consent that the text of the bills be 
printed in the Record.
  There being no objection, the bills were ordered to be printed in the 
Record, as follows:

                                S. 2231

       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 ``U.S.-Mexico Border Water 
     Pollution Control Act''.

     SEC. 2. WASTEWATER TREATMENT WORKS IN U.S.-MEXICO BORDER 
                   AREA.

       Title V of the Federal Water Pollution Control Act (33 
     U.S.C. 1361 et seq.) is amended by adding at the end the 
     following new section:


        ``wastewater treatment works in u.s.-mexico border area

       ``Sec. 520. (a) Purpose.--The purpose of this section is to 
     protect the economy, public health, environment, surface 
     water, ground water, and water quality of the U.S.-Mexico 
     border area which is endangered and is being polluted by raw 
     or partially treated sewage, in furtherance of the goals of 
     the Agreement Between the Government of the United States of 
     America and the Government of the United Mexican States 
     Concerning the Establishment of a Border Environment 
     Cooperation Commission and a North American Development Bank 
     (signed November 16 and 18, 1993), and this Act. This section 
     shall not be construed so as to affect or impair the 
     provisions of any international agreement of the United 
     States. Nor shall this section be construed so as to affect 
     or impair any Federal legislation applicable to the Border 
     Environment Cooperation Commission, the North American 
     Development Bank, or the International Boundary and Water 
     Commission, the United States and Mexico.
       `(b) Financial Assistance for Wastewater Treatment Works.--
     The Administrator is authorize to provide financial and other 
     assistance to the Border Environment Cooperation Commission, 
     any appropriate Federal, State, or local governmental entity, 
     and the International Boundary and Water Commission, the 
     United States and Mexico, subject to such terms and 
     conditions as the Administrator considers appropriate, for 
     planning, design, and construction of wastewater treatment 
     works for the purposes specified in subsection (a). The 
     wastewater treatment works shall be located, regardless of 
     the place of origin or ultimate destination of the 
     wastewater, in the U.S.-Mexico border area (or near the U.S.-
     Mexico border area if the treatment works would remedy a 
     transboundary environmental or health problem) and shall be 
     planned, designed, and constructed in accordance with any 
     applicable international agreement to which the United States 
     is a party.
       ``(c) Authorization of Appropriations.--There are 
     authorized to be appropriated to carry out this section 
     $20,000,000 for fiscal year 1994, $47,500,000 for fiscal year 
     1995, $100,000,000 for each of fiscal years 1996 through 
     2000, and $22,000,000 for fiscal year 2001.''.

     SEC. 3. DEFINITION OF U.S.-MEXICO BORDER AREA.

       Section 502 of the Federal Water Pollution Control Act (33 
     U.S.C. 1362) is amended by adding at the end the following 
     new paragraph:
       ``(21) The term `U.S.-Mexico border area' has the meaning 
     the term has under Article 4 of the Agreement Between the 
     United States of America and the United Mexican States on 
     Cooperation for the Protection and Improvement of the 
     Environment in the Border Area (signed on August 14, 1983; 
     commonly known as the `La Paz Agreement').''.
                                  ____


                                S. 2232

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

     SECTION 1. ASSISTANCE TO UNITED STATES COLONIAS.

       Title II of the Federal Water Pollution Control Act (33 
     U.S.C. 1281 et seq.) is amended by adding at the end the 
     following new section:

     ``SEC. 220. ASSISTANCE TO UNITED STATES COLONIAS.

       ``(a) Purpose.--The purpose of this section is to protect 
     the economy, public health, environment, surface water, 
     ground water, and water quality in the United States colonias 
     areas, which are endangered and are being polluted by raw or 
     partially treated sewage, in furtherance of the goals of this 
     Act.
       ``(b) Definiton of United States Colonia.--As used in this 
     section, the term `United States colonia'--
       ``(1) means any identifiable community that--
       ``(A) is in the State of Arizona, California, New Mexico, 
     or Texas;
       ``(B) is in the area of the United States within 100 
     kilometers of the border between the United States and 
     Mexico; and
       ``(C) is determined to be a colonia on the basis of 
     objective criteria, including lack of potable water supply or 
     lack of adequate sewage systems; and
       ``(2) includes a community within a standard metropolitan 
     statistical area that has a population exceeding 1,000,000, 
     but does not include the entire standard metropolitan 
     statistical area.
       ``(c) Financial Assistance to United States Colonias.--The 
     Administrator is authorized to provide financial assistance 
     to any State of the United States along the United States-
     Mexico border, or to any entity designated by the President, 
     for the construction of treatment works to service United 
     States colonias.
       ``(d) Approval of Plans.--Any wastewater treatment works to 
     serve United States colonias for which financial assistance 
     is provided under this section shall be constructed in 
     accordance with plans approved by the State under appropriate 
     standards required by the Administrator. The plans shall 
     include construction cost estimates and identify responsible 
     parties and the appropriate allocation of costs associated 
     with operating and maintaining the treatment works.
       ``(e) Cost Share.--The Federal share of construction costs 
     for grants under this section shall be 50 percent. The non-
     Federal share shall consist of State funds from State 
     sources.
       ``(f) Authorization of Appropriations.--There are 
     authorized to be appropriated to carry out this section 
     $60,000,000 for fiscal year 1994 and $50,000,000 for each of 
     fiscal years 1995 through 1998.''.

  Mrs. HUTCHISON. Mr. President, I would like to voice my strong 
support for S. 2231 the United States-Mexico Border Water Pollution 
Control Act, introduced by Senator Bingaman today. I am pleased to be 
an original cosponsor of this legislation.
  This bill addresses a reality that citizens who live near the Rio 
Grande River, which is the United States-Mexico border in Texas, face 
every day: pollution from raw or partially treated sewage. The 
awfulness of this situation is hard for most Americans to imagine. It 
ranges from mere inconvenience--a malodorous breeze coming from the Rio 
Grande--to serious health concerns associated with untreated sewage in 
water supplies used for drinking water, irrigation, recreational, and 
industrial use.
  This legislation recognizes the reality of cross-border pollution 
problems: Regardless of where the pollution originates, all the border 
area residents are endangered. Down along the Rio Grande, the river 
serves not so much to divide the nations but to link the communities 
inextricably through their mutual dependence on it. Inadequate sewage 
treatment facilities on the Mexican side of the border cause United 
States residents to suffer as much as the residents of Mexico. 
Therefore, our efforts to assist the 6 million U.S. residents on the 
border to live in a clean, pollution-free environment must reach across 
the border.
  Congress recognized the reality of transborder pollution and the need 
for a bilateral solution when it authorized the Border Environment 
Cooperation Commission-NADBank Agreement in NAFTA implementing 
legislation. This agreement is intended to make wastewater treatment 
facility financing available where it is needed--in both the United 
States and Mexico. Under the BECC-NADBank Agreement, about $8 billion--
from United States and Mexico public and private financing sources--
will be available for United States-Mexico border environmental 
infrastructure financing over the next 10 years. The Border Environment 
Cooperation Commission will help find financing for needed wastewater 
treatment projects along the Rio Grande, using Federal EPA grants for 
initial project assistance, and for projects which cannot be financed 
by the NADBank or in the private market.
  The United States-Mexico Border Pollution Control Act introduced 
today jumpstarts the new BECC-NADBank Agreement. The legislation 
provides the authorization for the EPA grants that will assist the BECC 
in coordinating and leveraging wastewater treatment facility financing 
on both sides of the border.
  Specifically, this bill amends the Clean Water Act to provide 
authorization for the construction of international wastewater 
treatment facilities in the vicinity of the United States-Mexico 
border.
  This legislation authorizes the appropriation of $20 million for 
fiscal year 1994, $47.5 million for fiscal year 1995, and $100 million 
for each of fiscal years 1996 through 2000, and $22 million for fiscal 
year 2001. Funding for these grants is paid for from the existing Clean 
Water Act hardship account.
  The funding authorized in this legislation will assist with planning, 
design, and construction of wastewater facilities, which may treat 
wastewater without regard to its origin or destination. These grants 
may be provided to the Border Environment Cooperation Commission, 
Federal, State, and local entities, and the International Boundary and 
Water Commission, the United States and Mexico.
  I support this legislation and will actively work for its enactment. 
I would like to point out that I am not a cosponsor of the second piece 
of legislation Senator Bingaman has introduced, The U.S. Colonias Water 
Pollution Control Act. I support the intent of Senator Bingaman's 
colonias legislation introduced today and will work closely with him 
and the administration to enact authorization for colonias grant 
funding as soon as possible. However, I have not cosponsored this 
legislation because it contains a one for one State matching 
requirement that I believe is counter-productive to the objectives of 
the legislation.
  In closing, I comment Senator Bingaman for his unwavering interest in 
helping to improve the lives of border residents, and I look forward to 
working with him and the other cosponsors of this legislation to enact 
legislation that accomplishes that goal.
                                 ______

      By Mr. BAUCUS (by request):
  S. 2233. A bill to provide for the conservation and development of 
water and related resources, to authorize the Secretary of the Army to 
construct various projects for improvements to rivers and harbors of 
the United States, and for other purposes; to the Committee on 
Environment and Public Works.


                water resources development act of 1994

 Mr. BAUCUS. Madam President, today I introduce at the request 
of the Assistant Secretary of the Army for Civil Works the Water 
Resources Development Act of 1994. This bill is the biannual 
reauthorization of ongoing and new water projects to be built and 
maintained by the Army Corps of Engineers in their civil works program. 
This legislation is critical to the orderly execution of the Army's 
civil works program.
  Mr. President, I ask unanimous consent that the text of the bill and 
additional material be printed in the Record.
  There being no objection, the material was ordered to the printed in 
the Record, as follows:

                                S. 2233

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

     SECTION 1. SHORT TITLE.

       (a) Short Title.--This Act may be cited as the ``Water 
     Resources Development Act of 1994.''

     SEC. 2. TABLE OF CONTENTS.

       The table of contents for the Act is as follows--

Sec. 1. Short title.
Sec. 2. Table of contents.
Sec. 3. Definitions.
Sec. 4. Project authorizations.
Sec. 5. Project modifications.
Sec. 6. Cost-sharing of environmental projects.
Sec. 7. Recovery of costs for cleanup of hazardous or toxic substances.
Sec. 8. Collaborative research and development.
Sec. 9. National inventory of dams.
Sec. 10. Hydroelectric power project uprating.
Sec. 11. Engineering and environmental innovations of national 
              significance.
Sec. 12. Federal lump-sum payments for federal operation and 
              maintenance costs.
Sec. 13. Cost-sharing for removal of existing project features.
Sec. 14. Technical advisory committee.
Sec. 15. Technical corrections.
Sec. 16. Project deauthorizations.
Sec. 17. Contract goals for small disadvantaged business concerns and 
              historically black colleges and universities or minority 
              institutions.
Sec. 18. Cost-sharing for dam safety work.
Sec. 19. Revocation of section 211, River and Harbor Act of 1950.
Sec. 20. Research and development in support of Army Civil Works 
              Program.
Sec. 21. Interagency and international support authority.
Sec. 22. Expansion of section 1135 program.
Sec. 23. Regulatory program fund.

     SEC. 3. DEFINITIONS.

       For purposes of this Act, the term ``Secretary'' means the 
     Secretary of the Army.

     SEC. 4. PROJECT AUTHORIZATIONS

       [Reserved.]

     SEC. 4. PROJECT MODIFICATIONS.

       [Reserved.]

     SEC. 5. COST-SHARING OF ENVIRONMENTAL PROJECTS.

       Section 103(c) of the Water Resources Development Act of 
     1986 [100 Stat. 4085] is amended by adding the following new 
     subsection:
       ``(7) environmental protection and restoration: 25 
     percent.''.

     SEC. 6. RECOVERY OF COSTS FOR CLEAN UP OF HAZARDOUS OR TOXIC 
                   SUBSTANCES.

       Amounts recovered under section 107 of the Comprehensive 
     Environmental Response, Compensation, and Liability Act of 
     1980 (42 U.S.C. 9607) for any response action taken by the 
     Secretary in support of the Army Civil Works Program shall be 
     credited to the appropriate trust fund account from which the 
     cost of such response action has been paid or will be 
     charged.

     SEC. 7. COLLABORATIVE RESEARCH AND DEVELOPMENT.

       Section 7 of the Water Resources Development Act of 1988 
     [102 Stat. 4022] is amended by--
       (1) redesignating subsections (b), (c) and (d) as 
     paragraphs (1), (2) and (3);
       (2) deleting subsection (e); and,
       (3) adding the following new subsection:
       ``(b) Pre-Agreement Temporary Protection of Technology.--If 
     the Secretary determines that information developed as a 
     result of research and development activities conducted by 
     the Corps of Engineers is likely to be subject to a 
     cooperative research and development agreement within 2 years 
     of its development and that such information would be a trade 
     secret or commercial or financial information that would be 
     privileged or confidential if the information had been 
     obtained from a non-Federal party participating in a 
     cooperative research and development agreement under section 
     12 of the Stevenson-Wydler Technology Innovation Act of 1980, 
     the Secretary may provide appropriate protection against the 
     dissemination of such information, including exemption from 
     subchapter II of chapter 5 of title 5, United States Code, 
     until the earlier of the date the Secretary enters into such 
     an agreement with respect to such information or the last day 
     of the 2-year period beginning on the date of such 
     determination. Any information covered by this subsection 
     which becomes the subject of a cooperative research and 
     development agreement shall be accorded the protection 
     provided under 15 U.S.C. 3710a(c)(7)(B) as if such 
     information had been developed under a cooperative research 
     and development agreement''.

     SEC. 8. NATIONAL INVENTORY OF DAMS.

       Section 13 of Public Law 92-367, 33 U.S.C. 467l, is amended 
     by striking the second sentence in its entirety and replacing 
     it with the following:
       ``There is authorized to be appropriated up to $500,000 
     each fiscal year for the purpose of carrying out this 
     section.''.

     SEC. 9. HYDROELECTRIC POWER PROJECT UPRATING.

       (a) In accomplishing the maintenance, rehabilitation, and 
     modernization of hydroelectric power generating facilities at 
     water resources projects under the jurisdiction of the 
     Department of the Army, the Secretary is authorized to 
     increase the efficiency of energy production and the capacity 
     of these facilities if, after consulting with other 
     appropriate Federal and State agencies, the Secretary 
     determines that such uprating--
       (1) is economically justified and financially feasible;
       (2) will not result in significant adverse effects on the 
     other purposes for which the project is authorized;
       (3) will not result in significant adverse environmental 
     impacts; and,
       (4) will not involve major structural or operation changes 
     in the project.
       (b) This section does not affect the authority of the 
     Secretary and the Administrator of the Bonneville Power 
     Administration under section 2406 of the Energy Policy Act of 
     1992 (16 U.S.C. 839d-1).

     SEC. 10. ENGINEERING AND ENVIRONMENTAL INNOVATIONS OF 
                   NATIONAL SIGNIFICANCE.

       To encourage innovative and environmentally sound 
     engineering solutions and innovative environmental solutions 
     to problems of national significance, the Secretary may 
     undertake surveys, plans, and studies and prepare reports 
     which may lead to work under existing civil works authorities 
     or to recommendations for authorizations. There is authorized 
     to be appropriated up to $3,000,000 each fiscal year for the 
     purpose of carrying out this section. The Secretary may also 
     accept and expend additional funds from other Federal 
     agencies, States, or non-Federal entities for purposes of 
     carrying out this section.

     SEC. 11. FEDERAL LUMP-SUM PAYMENTS FOR FEDERAL OPERATION AND 
                   MAINTENANCE COSTS.

       (a) At a water resources project where the non-Federal 
     interest is responsible for performing the operation, 
     maintenance, replacement, and rehabilitation of the project 
     and the Federal Government is responsible for paying a 
     portion of the operation, maintenance, replacement, and 
     rehabilitation costs, the Secretary may provide, under terms 
     and conditions acceptable to the Secretary, a payment of the 
     estimated total Federal share of such costs to the non-
     Federal interest after completion of construction of the 
     project or a separable element thereof.
       (b) The amount to be paid shall be equal to the present 
     value of the Federal payments over the life of the project, 
     as estimated by the Government, and shall be computed using 
     an interest rate determined by the Secretary of the Treasury 
     taking into consideration current market yields on 
     outstanding marketable obligations of the United States with 
     maturities comparable to the remaining life of the project.
       (c) The Secretary may make a payment under this section 
     only if the non-Federal interest has entered into a binding 
     agreement with the Secretary to perform the operation, 
     maintenance, replacement, and rehabilitation of the project 
     or separable element. The agreement must be in accordance 
     with the requirements of section 221 of the Flood Control Act 
     of 1970 [84 Stat. 1818], and must contain provisions 
     specifying the terms and conditions under which a payment may 
     be made under this section and the rights of, and remedies 
     available to, the Federal Government to recover all or a 
     portion of a payment made under this section in the event the 
     non-Federal interest suspends or terminates its performance 
     of operation, maintenance, replacement, and rehabilitation of 
     the project or separable element, or fails to perform such 
     activities in a manner satisfactory to the Secretary.
       (d) Except as provided in subsection (c), a payment 
     provided to the non-Federal interest under this section shall 
     relieve the Government of any future obligations for paying 
     any of the operation, maintenance, replacement, and 
     rehabilitation costs for the project or separable element.

     SEC. 12. COST-SHARING FOR REMOVAL OF EXISTING PROJECT 
                   FEATURES.

       After the date of enactment of this Act, any proposal 
     submitted to the Congress by the Secretary for modification 
     of an existing authorized water resources development project 
     by removal of one or more of the project features which would 
     significantly and adversely impact the authorized project 
     purposes or outputs shall include the recommendation that the 
     non-Federal sponsor shall bear 50 percent of the cost of any 
     such modification, including the costs of acquiring any 
     additional interests in lands which become necessary for 
     accomplishing the modification.

     SEC. 13. TECHNICAL ADVISORY COMMITTEE.

       The Technical Advisory Committee established pursuant to 
     section 310(a) of Pub. L. 101-640 shall no longer exist after 
     the date of enactment of this Act.

     SEC. 14. TECHNICAL CORRECTIONS.

       (a) Section 203(b) of the Water Resources Development Act 
     of 1992 [106 Stat. 4826] is amended by striking out 
     ``(8662)'' and inserting in lieu thereof ``(8862)''.
       (b) Section 225(c) of the Water Resources Development Act 
     of 1992 [106 Stat. 4838] is amended by striking out 
     ``(8662)'' in the second sentence and inserting in lieu 
     thereof ``(8862)''.

     SEC. 15. PROJECT DEAUTHORIZATIONS.

       (a) Section 1001 of the Water Resources Development Act of 
     1986 as amended (33 U.S.C. 579a) is further amended by--
       (1) striking ``10'' where it appears in the first sentence 
     of paragraph (2) of subsection (b) and replacing it with 
     ``5'';
       (2) striking the word ``Before'' at the beginning of the 
     second sentence of paragraph (2) of subsection (b) and 
     replacing it with the words ``Upon official''; and,
       (3) inserting the words ``planning, designing, or'' 
     immediately before the word ``construction'' in the last 
     sentence of paragraph (2) of subsection (b).
       (b) Section 52(a) of the Water Resources Development Act of 
     1988 [102 Stat. 4044] is repealed.

     SEC. 16. CONTRACT GOALS FOR SMALL DISADVANTAGED BUSINESS 
                   CONCERNS AND HISTORICALLY BLACK COLLEGES AND 
                   UNIVERSITIES OR MINORITY INSTITUTIONS.

       (a) Goal.--Except as provided in subsection (c), the 
     Secretary shall establish a goal of 5 percent of the total 
     amount of civil works funds obligated for contracts and 
     subcontracts entered into by the Department of the Army for 
     fiscal years 1994 through 2000 for award to small business 
     concerns owned and controlled by socially and economically 
     disadvantaged individuals (as such term is used in section 
     8(d) of the Small Business Act (15 U.S.C. 637(d)) and 
     regulations under that section), the majority of the earnings 
     of which directly accrue to such individuals, and to 
     historically Black colleges and universities or minority 
     institutions (as defined in paragraphs (3), (4), and (5) of 
     section 312(b) of the Higher Education Act of 1965 (20 U.S.C. 
     1058)).
       (b) Competitive Procedure.--To the extent practicable and 
     when necessary to facilitate achievement of the 5 percent 
     goal in subsection (a)--
       (1) the Secretary is authorized to enter into contracts 
     using less than full and open competitive procedures, but 
     shall pay a price not exceeding the fair market cost by more 
     than 10 percent in payment per contract to contractors or 
     subcontractors of contracts described in subsection (a).
       (2) the Secretary shall maximize the number of small 
     disadvantaged business concerns, historically Black colleges 
     and universities, and minority institutions participating in 
     the program.
       (c) Exception.--The Secretary shall adjust the percentage 
     specified in subsection (b)(1) of this section for any 
     industry category if available information clearly indicates 
     that nondisadvantaged small business concerns in such 
     industry category are generally being denied a reasonable 
     opportunity to compete for contracts because of the use of 
     that percentage.
       (d) Nonapplicability.--Subsection (a) does not apply if--
       (1) the Secretary determines that the existence of a 
     national emergency requires otherwise; and,
       (2) the Secretary notifies the Congress of such 
     determination and the reasons therefor.

     SEC. 17. COST-SHARING FOR DAM SAFETY WORK.

       Section 1203(a)(1) of the Water Resources Development Act 
     of 1986 is amended by inserting the following language 
     immediately after the first sentence:
       ``Where cost sharing was not based on a cost allocation, 
     15% of the modification costs shall be assigned among project 
     purposes in the same manner as costs were originally 
     assigned, as determined by the Secretary.''.

     SEC. 18. REVOCATION OF SECTION 211, RIVER AND HARBOR ACT OF 
                   1950.

       Section 211 of the River and Harbor Act of 1950, Public Law 
     516, 81st Congress, is hereby repealed.

     SEC. 19. RESEARCH AND DEVELOPMENT IN SUPPORT OF ARMY CIVIL 
                   WORKS PROGRAM.

       (a) In carrying out research and development in support of 
     the Civil Works program of the Department of the Army, the 
     Secretary may utilize contracts, cooperative research and 
     development agreements, cooperative agreements, and grants 
     with non-Federal entities, including State and local 
     governments, colleges and universities, consortia, 
     professional and technical societies, public and private 
     scientific and technical foundations, research institutions, 
     educational organizations, and non-profit organizations.
       (b) With respect to contracts for research and development, 
     the Secretary may include requirements that have potential 
     commercial application and may also use such potential 
     application as an evaluation factor where appropriate.

     SEC. 20. INTERAGENCY AND INTERNATIONAL SUPPORT AUTHORITY.

       The Secretary may engage in activities in support of other 
     Federal agencies or international organizations on problems 
     of national significance to the United States. The Secretary 
     may engage in activities in support of international 
     organizations only after consulting with the Department of 
     State. The Secretary may apply the technical and managerial 
     expertise of the Army Cops of Engineers to domestic and 
     international problems related to water resources, 
     infrastructure development and environmental protection. 
     There is authorized to be appropriated up to $3,000,000 each 
     fiscal year for the purpose of carrying out this section. The 
     Secretary may also accept and expend additional funds from 
     other Federal agencies or international organizations for 
     purposes of carrying out this section.

     SEC. 21. EXPANSION OF SECTION 1135 PROGRAM.

       Section 1135 of the Water Resources Development Act of 1986 
     (33 U.S.C. 2309a) is amended by--
       (1) striking the period at the end of subsection (a) and 
     inserting the following:
     ``and to determine if the operation of such projects has 
     contributed to the degradation of the quality of the 
     environment.'';
       (2) striking the last two sentences of subsection (b); and,
       (3) redesignating subsections (c), (d), and (e) as (e), 
     (f), and (g) and inserting the following new subsections:
       ``(c) If the Secretary determines that operation of a water 
     resources project has contributed to the degradation of the 
     quality of the environment, the Secretary may also undertake 
     measures for restoration of environmental quality, provided 
     such measures are feasible and consistent with the authorized 
     project purposes.''
       ``(d) The non-Federal share of the cost of any 
     modifications or measures carried out or undertaken pursuant 
     to subsections (b) or (c) of this section shall be 25 
     percent. No more than $5,000,000 in Federal funds may be 
     expended on any single modification or measure carried out or 
     undertaken pursuant to this section.''.

     SEC. 22. REGULATORY PROGRAM FUND.

       (a) There is hereby established in the Treasury of the 
     United States the ``Army Civil Works Regulatory Program 
     Fund'' (hereafter referred to as the ``Regulatory Program 
     Fund'') into which shall be deposited fees collected by the 
     Secretary of the Army pursuant to paragraph (b) of this 
     section. Amounts deposited into the Regulatory Program Fund 
     are authorized to be appropriated to the Secretary of the 
     Army to cover a portion of the expenses incurred by the 
     Department of the Army in administering laws pertaining to 
     the regulation of the navigable waters of the United States 
     as well as wetlands.
       (b) Regulatory Fees.--(1) To the extent provided for in 
     appropriation Acts, the Secretary of the Army shall establish 
     and collect fees for the evaluation of commercial permit 
     applications; for the recovery of costs associated with the 
     preparation of Environmental Impact Statements required by 
     the National Environmental Policy Act of 1969; and for the 
     recovery of costs associated with wetlands delineations for 
     major developments affecting wetlands. Amounts collected 
     pursuant to this paragraph shall be deposited into the 
     Regulatory Program Fund established by paragraph (a) of this 
     section.
       (2) The fees described in paragraph (1) of this subsection 
     shall be established by the Secretary of the Army at rates 
     that will allow for the recovery of receipts at amounts as 
     provided for in appropriation Acts.
                                  ____



                                       Department of the Army,

                                   Washington, DC, April 29, 1994.
     Hon. Albert Gore, Jr.,
     President of the Senate, Washington, DC.
       Dear Mr. President: Enclosed is a draft bill entitled the 
     ``Water Resources Development Act of 1994.'' Accompanying the 
     bill is draft report language.
       The proposals included in the bill constitute the 
     Department of the Army's Civil Works Legislative Program for 
     the Second Session of the 103rd Congress. The items in the 
     program are being submitted in the form of a Water Resources 
     Development Act.
       The Office of Management and Budget advises that, from the 
     standpoint of the Administration's program, there is no 
     object to the presentation of this proposal for consideration 
     by the Congress and that its enactment would be in accord 
     with the program of the President.


                       Purpose of the legislation

       The legislation preserves and strengthens the critical 
     cost-sharing reforms established in the Water Resources 
     Development Act of 1986. Its purpose is to continue the 
     biennial cycle for water resources authorizations, thereby 
     serving the public's need for navigation, flood control and 
     flood plain management, and storm damage reduction. It will 
     also benefit the Nation's economic growth and enhance 
     environmental protection.
       The proposed water resources development bill contains a 
     number of significant provisions which are important to the 
     Civil Works program of the Department of the Army and which 
     also reflect the Administration's goal of reinventing 
     Government. For example the provision on regulatory fees is a 
     part of Vice President Gore's national performance review.
       All of the provisions are intended to improve the 
     administration of the Army Civil Works program to allow for 
     more efficient and effective utilization of available 
     resources and to enhance mission accomplishment. Many of the 
     provisions seek to eliminate unnecessary legislative 
     requirements and to revise outdated legislation. For example, 
     included is a provision which would eliminate the legislated 
     requirement to impanel a board of advisors on matters 
     pertaining to water management at Corps reservoirs. We 
     believe this board is not needed for execution of the 
     agency's water control mission, and by eliminating the board 
     we would do away with the requirement to commit unnecessary 
     funding or manpower. There is also a provision to amend the 
     project deauthorization laws so as to streamline the process, 
     thereby resulting in substantial cost savings to the Federal 
     Government.


                 Environmental and Civil Rights Impacts

       These proposals will have no significant environmental or 
     civil rights impacts.
           Sincerely,

                                             John H. Zirschky,

                                        Acting Assistant Secretary
                                 of the Army (Civil Works)
                                 ______

      By Mr. BREAUX (for himself, Mr. Johnston, Mr. Pryor, Mr. Bumpers, 
        Mr. Durenberger, Mr. Sasser, Ms. Moseley-Braun, Mr. Simon, and 
        Mr. Feingold):
  S. 2234. A bill to amend the Mississippi River Corridor Study 
Commission Act of 1989 to extend the term of the Commission established 
under that act; to the Committee on Energy and Natural Resources.


 mississippi river corridor study commission act amendment act of 1994

 Mr. BREAUX. Mr. President, I introduce legislation for myself 
and Senators Johnston, Pryor, Bumpers, Durenberger, Sasser, Moseley-
Braun, Simon, and Feingold, to amend the Mississippi River Corridor 
Study Commission Act of 1989 in order to extend the life of the 
Commission for a period of 2 years.
  The Heritage Corridor Study Commission was established in 1990 to 
study the resources of the Mississippi River Valley and make 
recommendations to Congress on the boundaries of the proposed 
Mississippi River National Heritage Corridor stretching from the 
headwaters to the gulf. The Commission was authorized for a period of 3 
years from the date of their first meeting which occurred in June 1991.
  Since that time, the Commission has been working in cooperation with 
Federal, State and local units of Government to gather inventory data, 
develop boundaries and make recommendations to enhance the resources of 
the river valley. However, limited appropriations, the size of the 
study area--the largest heritage corridor in the United States--and the 
Commission's late start will prevent the Commission from completing the 
final study by the end of this month, when the authorization for the 
Commission is scheduled to expire.
  As required by the original act, an interim heritage corridor study 
report is required to be submitted and was submitted to Congress last 
fall, which outlines the progress made to date. The interim study 
highlights the work remaining to complete the study, which includes 
finalizing a description of the corridor and its resources, proposing 
boundaries for the National Heritage Corridor, and conducting a public 
meeting in each of the 10 river States. A final study is required to be 
produced by June 1996.
  While the original legislation--Public Law 101-398--authorized a 
total of $1.5 million for the Corridor Study Commission to complete its 
work, the Commission has received $499,000, or one-third of the total 
amount authorized. This legislation, by extending the authorization, 
would give the Commission the time and resources needed to complete 
this important project.
  Mr. President, the work of the Mississippi River National Heritage 
Corridor Study Commission holds great promise for promoting the 
historic, cultural, and economic resources of our 10 Mississippi River 
States. The final phase of this important project is at hand and the 
Commission must be allowed the time and resources it needs to prepare 
its final report to Congress, as required by the original act.
  Mr. President, this legislation would extend the life of the 
Commission for 2 years so that its final report will be submitted to 
Congress in June 1996. I urge the Senate to act on this important issue 
as soon as possible so that the Commission can continue its work 
without any delay.
                                 ______

      By Mr. WELLSTONE:
       S. 2235. A bill to authorize the establishment of an 
     Accredited Lenders Program for qualified State or local 
     development companies under the Small Business Investment Act 
     of 1958 and an Accredited Loan Packagers Pilot Program for 
     loan packagers under the Small Business Act; to the Committee 
     on Small Business.


          small business accredited lenders and packagers act

 Mr. WELLSTONE. Mr. President, today I am introducing a bill to 
authorize the establishment of an Accredited Lenders Program [ALP] for 
qualified State or local development companies under the Small Business 
Investment Act of 1958 and an Accredited Loan Packagers Pilot Program 
for loan packagers under the Small Business Act.
  As chairman of the Senate Small Business Subcommittee on Rural 
Economy and Family Farms, I learned about the importance of these 
programs from Terry Stone, the executive director of the Region 9 
Development Commission. It is as a result of his testimony last year 
before my subcommittee that I am introducing this legislation today.
  Mr. President, this bill seeks to make a significant improvement in 
the operation of the Small Business Administration's 504 and 7(a) loan 
guarantee programs, especially in rural areas. The bill would build on 
the efforts of the current Administrator, Erskine Bowles, to improve 
SBA loan programs by streamlining their service to the ultimate 
customer--small businesses. Specifically, the bill would authorize SBA 
district offices to provide expedited processing of applications for 
504 and 7(a) guaranteed loans in certain cases.
  The bill would establish a permanent Accredited Lenders Program 
within SBA's 504 Loan Guarantee Program. And it would further create a 
new pilot program, called the Accredited Packagers Pilot Program, 
within SBA's 7(a) Program. The concept in each case is modeled after 
the existing Certified Lender program in SBA's 7(a) Program.
  Small businesses are currently responsible for the largest growth in 
job creation in the United States and their principal problem is access 
to credit. The 504 and 7(a) programs are the two key credit programs 
run by the Small Business Administration. In the last few years these 
programs have experienced a dramatic increase in demand which has 
placed pressure on the SBA and its credit programs.
  This bill will help insure that credit can be delivered as quickly as 
possible to small businesses which are creating new jobs, especially in 
rural areas, without placing taxpayer money at greater risk.


                     the accredited lenders program

  The Accredited Lenders Program would authorize SBA to expand and make 
permanent an SBA pilot program which is already in operation. The ALP 
program would allow the SBA to rely on the credit analysis performed by 
qualifying SBA 504 Certified Development Companies [CDC's] in order to 
complete documentation for and guarantee loans quickly, usually within 
5 working days. Based on the proven lending record of an accredited 
CDC, SBA could process the loans without conducting its own credit 
analysis. Expedited turnaround would be accomplished by eliminating 
duplication of paperwork.

  This program is currently operating as a pilot for approximately 25 
community development corporations that make 504 loans. This is a 
proven program that should be expanded. My bill will turn this ALP from 
a pilot into a permanent authorization, expanded to cover the entire 
country.


              the accredited loan packagers pilot program

  The second component of the bill would be to authorize the creation 
of an Accredited Loan Packagers Pilot Program to provide loan packaging 
service to rural small businesses. It would target a pilot program to 
qualified rural packagers of 7(a) loans in areas where there is a lack 
of SBA certified or preferred lenders. The provision would allow SBA to 
provide expedited processing, usually within 5 working days, in chosen 
locations for loan applicants whose applications have been packaged by 
development organizations with a proven record of success. This pilot 
program would authorize the SBA to provide pilot programs in areas of 
the country that are currently underserved or that have no providers--
rural America.
  Both programs call for expedited processing of loans. Under the 
existing ALP Pilot Program and under SBA's 7(a) Program the SBA relies 
on the credit analyses of others and is therefore able to process loans 
in an expedited fashion in 5 working days. In fact, the SBA's standard 
operating procedure for the ALP Pilot Program actually states that the 
``* * * SBA should be able to process a 504 loan within 5 business 
days.'' The intent of this legislation is that the SBA similarly 
expedite the processing of loans under the new ALP program and the 
Accredited Loan Packagers Pilot Program within 5 working days by 
eliminating the need for a duplicative credit analysis.
  I urge my colleagues to join me in supporting this important 
legislation.
  I ask unanimous consent that the full text of the bill be printed in 
the Record.
  There being no objection, the bill was ordered to be printed in the 
Record, as follows:

                                S. 2235

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

     SECTION 1. ACCREDITED LENDERS PROGRAM.

       Title V of the Small Business Investment Act of 1958 (15 
     U.S.C. 695 et seq.) is amended by inserting after section 504 
     the following new section:

     ``SEC. 504A. ACCREDITED LENDERS PROGRAM.

       ``(a) In General.--The Administration shall establish an 
     Accredited Lenders Program for qualified State or local 
     development companies that meet the requirements of 
     subsection (b).
       ``(b) Designation of Accredited Lenders.--The 
     Administration shall designate a qualified State or local 
     development company as an accredited lender if such company--
       ``(1) demonstrates adequate knowledge of applicable laws 
     and regulations concerning the guaranteed loan program under 
     section 504;
       ``(2) demonstrates proficiency in meeting the requirements 
     of such guaranteed loan program; and
       ``(3) meets such other requirements as the Administration 
     may prescribe by regulation.
       ``(c) Expedited Processing.--The Administration may 
     expedite the processing of any loan application or servicing 
     action submitted by a qualified State or local development 
     company that has been designated as an accredited lender in 
     accordance with subsection (b).
       ``(d) Suspension or Revocation of Designation.--The 
     designation of a qualified State or local development company 
     as an accredited lender shall be suspended or revoked if the 
     Administration determines that--
       ``(1) the development company is not adhering to the 
     Administration's rules and regulations or is violating any 
     other applicable provision of law; or
       ``(2) the loss experience of the development company is 
     excessive as compared to other lenders;

     but such suspension or revocation shall not affect any 
     outstanding loan guarantee.
       ``(e) Definition.--For purposes of this section, the term 
     `qualified State or local development company' has the same 
     meaning as in section 503(e).
       ``(f) Regulations.--The Administration shall promulgate 
     such regulations as may be necessary to carry out this 
     section.''.

     SEC. 2. ACCREDITED LOAN PACKAGERS PILOT PROGRAM.

       Section 7(a) of the Small Business Act (15 U.S.C. 636(a)) 
     is amended by adding at the end the following new paragraph:
       ``(22) Accredited loan packagers pilot program.--
       ``(A) In general.--The Administration shall establish an 
     Accredited Loan Packagers Pilot Program (hereafter in this 
     paragraph referred to as the `Program') for loan packagers, 
     which shall be administered in accordance with subparagraphs 
     (B) through (G).
       ``(B) Designation of accredited loan packagers.--
       ``(i) Qualifications.--Subject to the limitation contained 
     in clause (ii), the Administration may designate a loan 
     packager as an accredited loan packager if such loan 
     packager--
       ``(I) is located in a rural area in which, in the 
     determination of the Administration, there is a severe 
     shortage or an absence of lenders that have been designated 
     as--
       ``(aa) certified lenders under the Certified Lenders 
     Program authorized by paragraph (19); or
       ``(bb) preferred lenders under the Preferred Lenders 
     Program authorized by section 5(b)(7);
       ``(II) demonstrates adequate knowledge of applicable laws 
     and regulations concerning guaranteed loan programs under 
     this subsection;
       ``(III) demonstrates proficiency in meeting the 
     requirements of such guaranteed loan programs; and
       ``(IV) meet such other requirements as the Administration 
     may prescribe by regulation.
       '`(ii) Total number.--In carrying out the Program, the 
     Administration shall designate not less than 10 and not more 
     than 15 loan packagers as accredited loan packagers.
       ``(C) Expedited processing.--During the 3-year period 
     described in subparagraph (G), the Administration may 
     expedite the processing of any loan application or servicing 
     action prepared by a loan packager that has been designated 
     as an accredited loan packager in accordance with 
     subparagraph (B).
       ``(D) Suspension or revocation of designation.--The 
     designation of a loan packager as an accredited loan packager 
     shall be suspended or revoked if the Administration 
     determines that--
       ``(i) the loan packager is not adhering to the 
     Administration's rules and regulations or is violating any 
     other applicable provision of law; or
       ``(ii) the loss experience of the loan packager is 
     excessive as compared to other loan packagers;

     but such suspension or revocation shall not affect any 
     outstanding loan guarantee.
       ``(E) Definition.--For purposes of this paragraph, the term 
     `loan packager' means any--
       ``(i) qualified State or local development company, as such 
     term is defined in section 503(e) of the Small Business 
     Investment Act of 1958; or
       ``(ii) other regional or local development organization 
     selected by the Administration.
       ``(F) Regulations.--The Administration shall promulgate 
     such regulations as may be necessary to carry out this 
     paragraph.
       ``(G) Sunset.--The Program shall terminate 3 years after 
     the date of enactment of this paragraph.''.
                                 ______

      B Mr. GRAHAM:
  S. 2237. A bill to amend the Immigration and Nationality Act to 
strengthen the criminal offenses and penalties for the smuggling of 
aliens; to the Committee on the Judiciary.


                      Alien Smuggling Act of 1994

 Mr. GRAHAM. Mr. President, I introduce legislation to address 
the growing problem of alien smuggling. In the last several years, we 
have seen an unprecedented rise in the number of aliens being smuggled 
into the United States. Increasingly, newspapers and television news 
programs relate horror stories regarding the shipboard conditions 
experienced by these aliens. Too often they are smuggled aboard 
overcrowded-unseaworthy vessels, in deplorable, inhumane, and 
unsanitary conditions.
  The legislation I am proposing today would increase the current 
penalty for alien smuggling from 5 to 10 years. We need to send a 
message to those who seek to profit from transporting aliens, without 
regard for human safety or lives.
  A recent incident off the coast of south Florida underscores the 
potential for tragedy in smuggling aliens, and the need to increase the 
penalty for smuggling. On March 28, 1994, a smuggling ring operating 
out of the Bahamas arranged for the passage of 10 people on a 19-foot 
boat. The boat, clearly designed to safely transport a much lesser 
load, encountered severe weather conditions. One day later, the U.S. 
Coast Guard discovered the craft overturned. Clinging to its side were 
seven people. The three other passengers, including a 16-month old 
baby, were lost in the water. The baby was later found dead.
  The captain of this boat has since been tried, and was sentenced to 
only 41 months in jail for three counts of alien smuggling and for 
involuntary manslaughter. The current law carries a penalty of 5 years 
for alien smuggling. Yet, had this smuggler been transporting drugs, he 
would have been sentenced to at least a mandatory 10 years.
  It is time to bring the severity of the punishment in line with the 
seriousness of the crime, creating a strong disincentive for alien 
smugglers. Until we do so, smugglers will continue to pursue their 
trade and continue to jeopardize the health and lives of those so 
desperate to reach our shores.
  Mr. President, I ask unanimous consent that the text of the bill be 
printed in the Record.
       ``(A) knowing that a person is an alien--
       ``(i) brings to or attempts to bring to the United States, 
     in any manner whatsoever or at any place whatsoever, such 
     person (other than a person who on has received prior 
     official authorization to come to, enter, or reside in the 
     United States), knowing or in reckless disregard of the fact 
     that such coming to or entry is or will be in violation of 
     law, or
       ``(ii) brings to or attempts to bring to the United States, 
     in any manner whatsoever, such person at a place other than a 
     designated port of entry or place other than as designated by 
     the Commissioner, regardless of whether such alien has 
     received prior official authorization to come to, enter, or 
     reside in the United States and regardless of any future 
     official action which may be taken with respect to such 
     alien'''.
       (b) Enhanced Penalty for Smuggling.--Section 274(a)(1) of 
     the Immigration and Nationality Act (8 U.S.C. 1324(a)(1)) is 
     amended by striking ``shall be fined'' and all that follows 
     and inserting the following:

     ``shall--
       ``(i) in the case of a violation of subparagraph (A)(i), be 
     fined in accordance with such title, or imprisoned not more 
     than ten years, or both, or
       ``(ii) in the case of any violation of subparagraph 
     (A)(ii), (B), (C), or (D), be fined in accordance with title 
     18, United States Code, or imprisoned not more than five 
     years, or both,
     for each alien in respect to whom such violation occurs.''.
       (c) Repeat Offenses.--Section 274(a)(2)(B) of such Act is 
     amended by inserting ``(or, in the case of an offense 
     described in clause (ii), ten years)'' after ``five years''.
       (d) Effective Date.--The amendments made by this section 
     shall apply to offenses occurring on or after the date of 
     enactment of this Act.
                                 ______

      By Mr. KENNEDY (for himself, Mr. Chafee, Mr. Akaka, Mr. Jeffords, 
        Mr. Bingaman, Mr. Packwood, Mrs. Boxer, Mr. Bradley, Mr. Dodd, 
        Mr. Feingold, Mrs. Feinstein, Mr. Glenn, Mr. Harkin, Mr. 
        Inouye, Mr. Kerry, Mr. Lautenberg, Mr. Leahy, Mr. Levin, Mr. 
        Lieberman, Mr. Metzenbaum, Ms. Mikulski, Ms. Moseley-Braun, Mr. 
        Moynihan, Mrs. Murray, Mr. Pell, Mr. Riegle, Mr. Robb, Mr. 
        Sarbanes, Mr. Simon, and Mr. Wellstone):
  S. 2238. A bill to prohibit employment discrimination on the basis of 
sexual orientation; to the Committee on Labor and Human Resources.


               employment non-discrimination act of 1994

  Mr. KENNEDY. Mr. President, I am pleased to introduce today the 
Employment Non-Discrimination Act of 1994.
  From the beginning, civil rights has been the unfinished business of 
America--and it still is. In the past 30 years, America has made 
significant progress in removing the burden of bigotry from our land. 
We have had an ongoing peaceful revolution of change, and that change 
and its accomplishments are a tribute to our democracy and to the 
remarkable resilience of this Nation's founding principles.
  Current Federal law rightly prohibits job discrimination on the basis 
of race, gender, religion, national origin, age, and disability. 
Establishing these essential protections was not easy or quick. But 
they have stood the test of time--and they have made us a better and a 
stronger nation.
  Today, we move forward again by seeking to extend this protection to 
sexual orientation.
  So I am proud to stand again with individuals--such as Coretta Scott 
King and Justin Dart--and organizations whose tireless commitment to 
freedom, justice, and opportunity for all has guided our national 
journey. In large part, we are here today, and America is America 
today, because of them.
  We have been here before--and our work goes on.
  The Employment Non-Discrimination Act is a great endeavor. It is 
another significant step on freedom's journey--another milestone in the 
civil rights march of our time.
  The act parallels protections against job discrimination already 
provided under title VII of the Civil Rights Act. The bill prohibits 
employers, employment agencies, and labor unions from using an 
individual's sexual orientation as the basis for employment decisions, 
such as hiring, firing, promotion, or compensation. This prohibition on 
discrimination is familiar territory, and these well-established 
standards can be easily applied to sexual orientation.
  The act is simple and straightforward. Its goal is to eliminate job 
discrimination against fellow Americans.
  Under the act, no disparate impact claims would be permitted based on 
under-representation in the work force, and the religious exemption is 
broadly defined. In addition, the legislation makes clear that 
preferential treatment, including quotas, is prohibited, and benefits 
for domestic partners are not required. Finally, the act does not apply 
to members of the Armed Forces.
  This bill is not about granting special rights--it is about righting 
senseless wrongs.
  What it requires is simple justice for gay men and lesbians who 
deserve to be judged in their job settings--like all other Americans--
by their ability to do the work.
  Today, job discrimination on the basis of sexual orientation is too 
often a fact of life. From corporate suites to plant floors, qualified 
employees live in fear of losing their livelihood for reasons that have 
nothing to do with their skills or their performance. Yet there is no 
Federal prohibition on such discrimination.
  This bill is not about statistics. It is about real Americans whose 
lives and livelihoods are being shattered by prejudice.
  This bill is for the postal worker in Michigan who was verbally 
harassed and then beaten unconscious by his coworkers for being gay. He 
reported continued harassment to his superiors--but they did nothing. 
In a subsequent law suit, the court rejected his claim because 
discrimination based on sexual orientation is not covered under Federal 
law.
  This bill is for a cook from Georgia who was fired despite a solid 3-
year perfect performance record, after a nation-wide restaurant chain 
adopted a blanket policy excluding employees whose sexual orientation 
did not demonstrate normal heterosexual values. Her separation notice 
read: ``This employee is being terminated due to violation of company 
policy. The employee is gay.''
  It doesn't get any clearer than that.
  Job discrimination is not only un-American--it is unprofitable and 
counterproductive. It excludes qualified individuals, lowers work force 
productivity, and eventually hurts us all. If we are to compete 
effectively in a global economy, we have to use all our available 
talent and create a workplace environment where everyone can excel.
  This reality had been recognized by many Fortune 500 companies, 
including General Electric, AT&T, and the Bank of Boston. They 
understand that ending discrimination based on sexual orientation is 
good for business and good for the country.
  In the absence of a Federal remedy, many State and local governments 
have acted responsibly to prohibit job discrimination based on sexual 
orientation. Over a hundred mayors and Governors, Republicans and 
Democrats, have signed laws and issued orders protecting gay and 
lesbian employees.
  Based on this successful State and local experience, it is time for 
the Federal Government to secure this fundamental promise of freedom by 
ensuring fairness throughout the workforce.
  We know we cannot change attitudes overnight. But if we have learned 
anything from the burdens and the achievements of American history, it 
is that changes in the law are an essential step in breaking down 
barriers, exposing prejudice, and building a better tomorrow.
  Today's action brings us one step closer to the ideals of liberty. I 
am pleased to be introducing the Employment Non-Discrimination Act of 
1994 in the Senate along with Senator Chafee--and more than 
30 Senators committed to this effort. And I am also grateful to 
Representatives Frank, Studds, Edwards, and Morella for their 
leadership in the House.
  The bipartisan coalition for civil rights in Congress has been a 
powerful force for justice and opportunity.
  Our case is strong--our cause is just--and we intend to prevail.
  Mr. President, I ask unanimous consent that the text of the bill and 
additional material be printed in the Record.
  There being no objection, the material was ordered to be printed in 
the Record, as follows:

                                S. 2238

       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 ``Employment Non-
     Discrimination Act of 1994''.

     SEC. 2. FINDINGS AND PURPOSES.

       (a) Findings.--The Congress finds that--
       (1) an individual's sexual orientation bears no 
     relationship to the individual's ability to contribute fully 
     to the economic and civic life of society;
       (2) historically, American society has tended to isolate, 
     stigmatize, and persecute gay men, lesbians, and bisexuals;
       (3) one of the main areas in which gay men, lesbians, and 
     bisexuals face discrimination is employment;
       (4) employment discrimination on the basis of sexual 
     orientation violates fundamental American values of equality 
     and fairness;
       (5) the continuing existence of employment discrimination 
     on the basis of sexual orientation denies gay men, lesbians, 
     and bisexuals equal opportunity in the workplace and affects 
     interstate commerce;
       (6) individuals who have experienced employment 
     discrimination on the basis of sexual orientation often lack 
     recourse under Federal law; and
       (7) gay men, lesbians, and bisexuals have historically been 
     excluded from full participation in the political process, 
     comprise a discrete and insular minority, and have 
     historically been subjected to purposeful unequal treatment 
     based on characteristics not indicative of their ability to 
     participate in or contribute to society.
       (b) Purposes.--It is the purpose of this Act--
       (1) to provide a comprehensive Federal prohibition of 
     employment discrimination on the basis of sexual orientation;
       (2) to provide meaningful and effective remedies for 
     employment discrimination on the basis of sexual orientation; 
     and
       (3) to invoke congressional powers, including the powers to 
     enforce the 14th amendment to the Constitution and to 
     regulate commerce, in order to prohibit employment 
     discrimination on the basis of sexual orientation.

     SEC. 3. DISCRIMINATION PROHIBITED.

       A covered entity, in connection with employment or 
     employment opportunities, shall not--
       (1) subject an individual to different standards or 
     treatment on the basis of sexual orientation;
       (2) discriminate against an individual based on the sexual 
     orientation of persons with whom such individual is believed 
     to associate or to have associated; or
       (3) otherwise discriminate against an individual on the 
     basis of sexual orientation.

     SEC. 4. BENEFITS.

       This Act does not apply to the provision of employee 
     benefits to an individual for the benefit of his or her 
     partner.

     SEC. 5. NO DISPARATE IMPACT.

       The fact that an employment practice has a disparate 
     impact, as the term ``disparate impact'' is used in section 
     703(k) of the Civil Rights Act of 1964 (42 U.S.C. 2000e-
     2(k)), on the basis of sexual orientation does not establish 
     a prima facie violation of this Act.

     SEC. 6. QUOTAS AND PREFERENTIAL TREATMENT PROHIBITED.

       (a) Quotas.--A covered entity shall not adopt or implement 
     a quota on the basis of sexual orientation.
       (b) Preferential Treatment.--A covered entity shall not 
     give preferential treatment to an individual on the basis of 
     sexual orientation.

     SEC. 7. RELIGIOUS EXEMPTION.

       (a) In General.--Except as provided in subsection (b), this 
     Act shall not apply to religious organizations.
       (b) For-Profit Activities.--This Act shall apply to a 
     religious organization's for-profit activities subject to 
     taxation under section 511(a) of the Internal Revenue Code of 
     1986 as in effect on the date of the enactment of this Act.

     SEC. 8. NON-APPLICATION TO MEMBERS OF THE ARMED FORCES; 
                   VETERANS' PREFERENCES.

       (a) Armed Forces.--
       (1) For purposes of this Act, the term ``employment or 
     employment opportunities'' does not apply to the relationship 
     between the United States and members of the Armed Forces.
       (2) As used in paragraph (1), the term ``Armed Forces'' 
     means the Army, Navy, Air Force, Marine Corps, and Coast 
     Guard.
       (b) Veterans' Preferences.--This Act does not repeal or 
     modify any Federal, State, territorial, or local law creating 
     special rights or preferences for veterans.

     SEC. 9. ENFORCEMENT.

       (a) Enforcement Powers.--With respect to the administration 
     and enforcement of this Act--
       (1) the Commission and the Librarian of Congress shall have 
     the same powers, respectively, as the Commission and the 
     Librarian of Congress have to administer and enforce title 
     VII of the Civil Rights Act of 1964 (42 U.S.C. 2000e et 
     seq.);
       (2) the Attorney General of the United States shall have 
     the same powers as the Attorney General has to administer and 
     enforce such title; and
       (3) the district courts of the United States shall have the 
     same jurisdiction and powers as such courts have to enforce 
     such title and section 309 of the Civil Rights Act of 1991 (2 
     U.S.C. 1209).
       (b) Procedures and Remedies.--The procedures and remedies 
     applicable to a claim for a violation of this Act are as 
     follows:
       (1) For a violation alleged by an individual, other than an 
     individual specified in paragraph (2) or (3), the procedures 
     and remedies applicable to a claim brought by an individual 
     for a violation of title VII of the Civil Rights Act of 1964 
     (42 U.S.C. 2000e et seq.) shall apply.
       (2) For a violation alleged by an employee of the House of 
     Representatives or of an instrumentality of the Congress, the 
     procedures and remedies applicable to a claim by such 
     employee for a violation of section 117 of the Civil Rights 
     Act of 1991 (2 U.S.C. 60l) shall apply.
       (3) For a violation alleged by an employee of the Senate, 
     the procedures and remedies applicable to a claim by such 
     employee for a violation of section 302 of the Civil Rights 
     Act of 1991 (2 U.S.C. 1202) shall apply.

     SEC. 10. STATE AND FEDERAL IMMUNITY.

       (a) State Immunity.--A State shall not be immune under the 
     11th amendment to the Constitution of the United States from 
     an action in a Federal court of competent jurisdiction for a 
     violation of this Act. In an action against a State for a 
     violation of this Act, remedies (including remedies at law 
     and in equity) are available for the violation to the same 
     extent as such remedies are available in an action against 
     any public or private entity other than a State.
       (b) Liability of the United States.--The United States 
     shall be liable for all remedies under this Act to the same 
     extent as a private person and shall be liable to the same 
     extent as a nonpublic party for interest to compensate for 
     delay in payment.

     SEC. 11. ATTORNEYS' FEES.

       In any action or administrative proceeding commenced 
     pursuant to this Act, the court or the Commission, in its 
     discretion, may allow the prevailing party, other than the 
     United States, a reasonable attorneys' fee, including expert 
     fees and other litigation expenses, and costs. The United 
     States shall be liable for the foregoing the same as a 
     private person.

     SEC. 12. RETALIATION AND COERCION PROHIBITED.

       (a) Retaliation.--A covered entity shall not discriminate 
     against an individual because such individual opposed any act 
     or practice prohibited by this Act or because such individual 
     made a charge, assisted, testified, or participated in any 
     manner in an investigation, proceeding, or hearing under this 
     Act.
       (b) Coercion.--A person shall not coerce, intimidate, 
     threaten, or interfere with any individual in the exercise or 
     enjoyment of or on account of his or her having exercised, 
     enjoyed, assisted, or encouraged the exercise or enjoyment 
     of, any right protected by this Act.

     SEC. 13. POSTING NOTICES.

       A covered entity shall post notices for employees, 
     applicants for employment, and members describing the 
     applicable provisions of this Act, in the manner prescribed 
     by, and subject to the penalty provided under, section 711 of 
     the Civil Rights Act of 1964 (42 U.S.C. 2000e-10).

     SEC. 14. REGULATIONS.

       The Commission shall have the authority to issue 
     regulations to carry out this Act.

     SEC. 15. RELATIONSHIP TO OTHER LAWS.

       This Act shall not invalidate or limit the rights, 
     remedies, or procedures available to an individual claiming 
     discrimination prohibited under any other Federal law or any 
     law of a State or political subdivision of a State.

     SEC. 16. SEVERABILITY.

       If any provision of this Act, or the application of such 
     provision to any person or circumstance, is held to be 
     invalid, the remainder of this Act and the application of 
     such provision to other persons or circumstances shall not be 
     affected thereby.

     SEC. 17. EFFECTIVE DATE.

       This Act shall take effect 60 days after the date of the 
     enactment of this Act, and shall not apply to conduct 
     occurring before such effective date.

     SEC. 18. DEFINITIONS.

       As used in this Act--
       (1) the term ``commerce'' has the meaning given such term 
     in section 701(g) of the Civil Rights Act of 1964 (42 U.S.C. 
     2000e(g));
       (2) the term ``Commission'' means the Equal Employment 
     Opportunity Commission established by section 705 of the 
     Civil Rights Act of 1964 (42 U.S.C. 2000e-4);
       (3) the term ``covered entity'' means an employer, 
     employment agency, labor organization, joint labor-management 
     committee, an entity to which section 717(a) of the Civil 
     Rights Act of 1964 (42 U.S.C. 2000e(a)) applies, an employing 
     authority of the House of Representatives, an employing 
     office of the Senate, or an instrumentality of the Congress;
       (4) the term ``employee of the Senate'' has the meaning 
     given such term in section 301(c) of the Civil Rights Act of 
     1991 (2 U.S.C. 1201(c));
       (5) the term ``employer'' has the meaning given such term 
     in section 701(b) of the Civil Rights Act of 1964 (42 U.S.C. 
     2000e(b));
       (6) the term ``employment agency'' has the meaning given 
     such term in section 701(c) of the Civil Rights Act of 1964 
     (42 U.S.C. 2000e(c));
       (7) the term ``employment or employment opportunities'' 
     includes job application procedures, hiring, advancement, 
     discharge, compensation, job training, or any other term, 
     condition, or privilege of employment;
       (8) the term ``instrumentalities of the Congress'' has the 
     meaning given such term in section 117(b)(4) of the Civil 
     Rights Act of 1991 (2 U.S.C. 60l(b)(4));
       (9) the term ``labor organization'' has the meaning given 
     such term in section 701(d) of the Civil Rights Act of 1964 
     (42 U.S.C. 2000e(d));
       (10) the term ``person'' has the meaning given such term in 
     section 701(a) of the Civil Rights Act of 1964 (42 U.S.C. 
     2000e(a));
       (11) the term ``religious organization'' means--
       (A) a religious corporation, association, or society; or
       (B) a college, school, university, or other educational 
     institution, not otherwise a religious organization, if--
       (i) it is in whole or substantial part controlled, managed, 
     owned, or supported by a religious corporation, association, 
     or society; or
       (ii) its curriculum is directed toward the propagation of a 
     particular religion;
       (12) the term ``sexual orientation'' means lesbian, gay, 
     bisexual, or heterosexual orientation, real or perceived, as 
     manifested by identity, acts, statements, or associations; 
     and
       (13) the term ``State'' has the meaning given such term in 
     section 701(i) of the Civil Rights Act of 1964 (42 U.S.C. 
     2000e(i)).
                                  ____


     Remarks by Coretta Scott King at the Press Conference on the 
     Introduction of the Employment Non-Discrimination Act of 1994

       Thank you for your gracious introduction. And I want to 
     thank all of the members of the press for joining us today 
     for this important press conference on the employment non-
     discrimination of 1994.
       Senator Chaffee, Senator Kennedy, Representatives Edwards, 
     Frank, Studds, and Morella, distinguished guests, members of 
     the press, today I am proud to join in supporting this much-
     needed legislation, which would provide some long-overdue 
     protection to American workers from the injustice of 
     discrimination based on sexual orientation.
       I support this legislation because lesbian and gay people 
     are a permanent part of the American work force, who 
     currently have no protection from the arbitrary abuse of 
     their rights on the job. For too long, our Nation has 
     tolerated the insidious form of discrimination against this 
     group of Americans, who have worked as hard as any other 
     group, paid their taxes like everyone else, and yet have been 
     denied equal protection under the law.
       By including victims of discrimination based on sexual 
     orientation, this bill would do much to rectify this 
     injustice in the workplaces of America. I am much encouraged 
     that a recent newsweek opinion poll found that 74 percent of 
     the respondents favored protecting gay and lesbian people 
     from job discrimination, and I am proud to stand with this 
     overwhelming majority of Americans who recognize the justice 
     of this cause.
       This bill would grant the same rights to victims of 
     discrimination based on sexual orientation that are extended 
     to victims or racial, gender, and religious discrimination 
     and those who have been unfairly treated in the workplace 
     because of their age, ethnicity, or disability. The bill 
     provides no preferential treatment or special rights that 
     have been denied these groups.
       I support the Employment Non-discrimination Act of 1994 
     because I believe that freedom and justice cannot be parceled 
     out in pieces to suit political convenience. As my husband, 
     Martin Luther King, Jr. said, ``Injustice anywhere is a 
     threat to justice everywhere.'' On another occasion he said, 
     ``I have worked too long and hard against segregated public 
     accommodations to end up segregating my moral concern. 
     Justice is indivisible.'' Like Martin, I don't believe you 
     can stand for freedom for one group of people and deny it to 
     others.
       So I see this bill as a step forward for freedom and human 
     rights in our country and a logical extension of the Bill of 
     Rights and the civil rights reforms of the 1950's and 60's.
       The great promise of American democracy is that no group of 
     people will be forced to suffer discrimination and injustice. 
     I believe that this legislation will provide protection to a 
     large group of working people, who have suffered persecution 
     and discrimination for many years. To this endeavor, I pledge 
     my wholehearted support.
                                  ____


Remarks by Justin Dart, Former Chairman of the President's Committee on 
     Employment of People With Disabilities, Press Conference, the 
                 Employment Non-Discrimination Act 1994

       This is a great day for democracy. Mr. Jefferson and Martin 
     Luther King are smiling.
       On behalf of my colleagues in the Disability Rights 
     Movement, I congratulate all the sponsors and other 
     supporters of the Employment Non-Discrimination Act of 1994.
       I call on the Members of Congress to pass and the President 
     to sign this historic bill. I call on all who love the 
     American dream to support it.
       It is a special privilege to be here today with great 
     patriots of justice like Coretta Scott King, Pat Wright and 
     many others.
       Senator Edward Kennedy is an authentic hero of the Civil 
     and Disability Rights Movements.
       Senator John Chafee and Representatives Connie Morella and 
     Barney Frank have been consistent supporters of the rights of 
     people with and without disabilities.
       The Non-Discrimination Act of 1994 will be another landmark 
     of justice in the great tradition of the Civil Rights Act of 
     1964, the age Discrimination in Employment Act of 1967, the 
     Rehabilitation Act of 1973, the Americans with Disabilities 
     Act of 1990 and the Civil Rights Act of 1991.
       Why am I, a disability Rights Advocate, supporting this 
     bill on sexual orientation?
       Because what Martin Luther King said is profoundly true. 
     ``Injustice anywhere is a threat to justice everywhere.'' 
     None of us are truly free until all of us are free.
       Because eventually every family in the United States will 
     have one or more members whose basic constitutional rights 
     will be protected by this law. This is not a law for 
     ``them.'' This is a law for us. All of us.
       Historically, there has been opposition to civil rights. 
     There is the assertion that civil rights is a kind of 
     bothersome burden that do-gooders impose on sound business 
     and sound government. This is a dangerous fallacy.
       Civil rights and free enterprise are two sides of the same 
     solid gold cultural currency that has revolutionized the 
     productivity and the quality of human life.
       Our forefathers and mothers came to this country because we 
     offered extraordinary legal guarantees of equal opportunity. 
     They got rich and America got rich. Every time we expanded 
     those civil rights guarantees to include another oppressed 
     minority, Americans got richer, America became more 
     democratic.
       Civil rights puts the ``free'' in free enterprise. America 
     is not rich in spite of civil rights. America is rich because 
     of civil rights.
       The Non-Discrimination Act of 1994 will produce profits 
     that will reduce deficits and enrich every citizen in terms 
     of money and of quality of life.
       It's the right thing to do. We will keep the sacred pledge 
     of liberty and justice for all.
       Let us join together, Republicans, Democrats, just plain 
     Americans, to support the passage of this great law, and then 
     to implement it in every heart and mind and community in 
     America. Together, we shall overcome.

 Mr. PACKWOOD. Mr. President, I am pleased to be an original 
cosponsor of the Employment Non-Discrimination Act of 1994, a bill to 
prohibit job discrimination based on sexual orientation. It is surely 
time to ensure that the rights of all Americans simply to earn a living 
are protected. The key issue in employment decisions should be: Can the 
person do the job? No characteristics such as race, gender, age, or 
sexual orientation should in and of themselves have a bearing on such a 
determination.
  I am concerned over what I see as a growing intolerance in this 
country for people and groups with different ideas or ways of life. The 
danger to the liberties of all Americans is most threatened by those 
who want to compel conformity of thought and deed. Conversely, our 
liberties are most secured by a decent respect for diversity, 
particularly on those subjects upon which there is no consensus.
  The genesis of all civil rights in our great country is the U.S. 
Constitution. This document prohibits the Federal Government from 
depriving any person of life, liberty, or property without due process 
of law. Our Constitution also forbids States from denying any person 
the equal protection of the laws. States are further obliged to protect 
the rights of persons equally, that is, without discrimination against 
any class of persons.
  The Constitution gives Congress the power to enforce our civil rights 
by appropriate legislation. The first Civil Rights Act, passed in 1866, 
guaranteed to every U.S. citizen the same rights that white citizens 
have to inherit, purchase, lease, and sell property. A series of other 
laws in years following the Civil War made it clear that our nonwhite 
citizens were to enjoy the same rights as whites in other areas such as 
contracting and sitting on juries.
  Twentieth-century civil rights laws reflect the growing recognition 
of Congress and the American people of the need for equal protection in 
the areas of voting, public accommodation, education, employment, 
housing, credit, and access to Federal programs. In addition to the 
protection of these substantive rights, Congress has acted to extend 
constitutional protection beyond race to religion, sex, handicap, 
national origin, age, and marital status. Our history reflects a 
dynamic process, expanding protection to ensure that all basic rights 
of all groups are safeguarded.
  Consistent with this pattern of extending protection to all citizen's 
liberties, or those perceived as such, it is time to end discrimination 
in the workplace against gays and lesbians. Employment should be based 
solely on merit. This bill does not create any special rights; rather, 
it protects a right that everyone should enjoy--the right to be free of 
discrimination based on irrational prejudice on the job.
  It should be noted that the Employment Non-Discrimination Act of 1994 
prohibits any form of preferential treatment, including quotas, based 
on sexual orientation. Also, the legislation does not require an 
employer to provide benefits, such as insurance, for the same-sex 
partner of an employee. And finally, the act does not apply to the 
uniform military and thus does not affect the military ban on gay men 
and lesbians.
  Mr. President, I wish this legislation were not necessary, but 
unfortunately it is. We must now take steps to protect the gains of the 
last 25 years in eliminating employment discrimination. I am proud and 
pleased to be a cosponsor of the Employment Non-Discrimination Act of 
1994.
 Mrs. FEINSTEIN. Mr. President, today's introduction of the 
Employment Non-Discrimination Act of 1994, which will prohibit 
employment discrimination on the basis of sexual orientation, has in a 
way, been a long journey for me.
  Twenty-five years ago, I ran for my first elected office as a 
supervisor for the city and County of San Francisco. When I did so, I 
was told of the very real problem of job discrimination on the basis of 
sexual orientation, and the need for antidiscrimination legislation.
  Well, I won that election, and when I did, one of the first pieces of 
legislation that I authored was an amendment, to San Francisco's Human 
Rights Ordinance, to prohibit employment discrimination on the basis of 
sex or sexual orientation. Frankly, the legislation languished in 
committee for some time. Eventually, as president of the board of 
supervisors, I called it out of committee, whereupon it passed with 
strong support. As far as I know, it was the first such legislation in 
any major jurisdiction in the country.
  After that ordinance was adopted, and over the years that I served as 
a supervisor and mayor of San Francisco, I came to know many gay and 
lesbian people who excelled in their professions. Attorneys, 
physicians, educators, judges, journalists, airline pilots, elected 
officials, one of whom is now an assistant secretary in the 
administration, and business men and women in virtually every endeavor. 
Many of these people broke new ground. And many excelled.
  It is interesting that, on more than one occasion, various people 
remarked to me that they could not have accomplished in their 
hometowns, what they were able to accomplish professionally in San 
Francisco.
  Well, some 20 years later, I'm pleased to report that no businesses 
went bankrupt as a result of that ordinance. No employers faced 
hardships. On the contrary, many companies found that the principle of 
hiring and promoting the best-qualified employees, based solely on 
merit, yielded the most productive work force.
  That principle which saw its beginning as a groundbreaking ordinance 
in a relatively small west coast city will, today, be introduced into 
the U.S. Senate. Crossing this frontier carries a very special 
significance for me.
  These are tough economic times for our country. And I believe that 
nobody should be denied opportunity especially during these hard times. 
And I also believe that our society should be denied nobody's 
contribution. Employment decisions should be based on qualifications, 
and ability, and merit. Not on race, creed, color, disability, sex, or 
sexual orientation.
  I want to commend the distinguished senator from Massachusetts. 
Clearly, a great deal of thought has gone into the crafting of this 
bill. It is simple in its approach. It anticipates legitimate concerns 
and, I feel, addresses them.
  Simply stated--this legislation prohibits employment discrimination 
on the basis of sexual orientation.
  Basically, the legislation follows the approach used in the Americans 
with Disabilities Act, and provides for the same enforcement powers and 
remedies as provided for by title VII of the Civil Rights Act of 1964.
  Let us be clear about what this legislation does not do. It does not 
create special rights or suggest quotas. On the contrary, the act 
specifically prohibits preferential treatment or quotas.
  The act does not apply to members of the Armed Forces.
  There is an exemption for religious organizations and educational 
institutions which are attached to a religious organization.
  Like the Civil Rights Act of 1964, small employers with less than 15 
employees are not covered by this act.
  The act does not apply to employee benefits for an employee's 
partner.
  Finally, there can be no disparate impact claim, requiring employers 
to justify a neutral hiring practice absent any specific evidence of 
discrimination.
  This is well-crafted legislation whose time has come.
  Throughout my public life, I have had a simple vision for society. It 
is one of many different people living together in harmony without fear 
of bias. Also, throughout my public life, gay men and lesbians have 
been among my employees, and served in my administration when I was 
mayor. I am proud to have seen them grow and move on to advance in 
their respective careers.
  Our Constitution guarantees equal protection. The promise of our 
Nation is one of equality and freedom--of life, liberty, and the 
pursuit of happiness.
  Our commitment to equality cannot be a passing one, nor can it be 
selective. For too long, in too many parts of our country, too many 
people have suffered the pain of employment discrimination, and have 
been held back. Opportunity has been denied. And often, along with that 
lost opportunity, we have lost the contributions of some of our 
society's most gifted individuals. For the most part, these are losses 
we will never know. But we can do something to bring those losses to an 
end. We can pass this legislation.
  I believe that a people, when allowed to be free, will make its 
greatest contribution. That is the vision of America. That is the 
promise for all. That promise is embodied in this legislation.
                                 ______

      By Mr. KENNEDY (for himself and Mrs. Kassebaum):
  S.J. Res. 203. A joint resolution designating July 12, 1994, as 
``Public Health Awareness Day''; to the Committee on the Judiciary.


                      public health awareness day

  Mr. KENNEDY. Mr. President, 50 years ago next month, Congress enacted 
landmark legislation consolidating the various public health activities 
of the Federal Government into the U.S. Public Health Service. Today, 
it consists of the Office of the Assistant Secretary for Health, the 
Agency for Health Care Policy and Research, the Agency for Toxic 
Substances and Disease Registry, the Centers for Disease Control and 
Prevention, the food and Drug Administration, the Health Resources and 
Service Administration, the Indian Health Service, the National 
Institutes of Health, and the Substance Abuse and Mental Health 
Services Administration.
  Together, these agencies are on the front lines of a wide range of 
public health activities, helping to prevent unnecessary death and 
disability, protecting the public against dangerous products, improving 
access to health care, enhancing the quality of life for large numbers 
of our citizens, and greatly reducing disparities in the health status 
of the poor and minorities in our society.
  The U.S. Public Health Service has achieved these successes by 
working in partnership with State and local governments and private 
organizations. Americans are living longer and healthier lives due in 
large part to these activities.
  The accomplishments of the U.S. Public Health Service over the past 
50 years are among our Nation's greatest modern achievements. It is 
fitting for Congress and for the Nation to pay tribute to this proud 
organization on this auspicious anniversary.
  I urge prompt action on this joint resolution, and I ask unanimous 
consent that the text of the joint resolution be printed in the Record.
  There being no objection, the joint resolution was ordered to be 
printed in the Record, as follows:

                             S.J. Res. 203

       Whereas the modern United States Public Health Service was 
     shaped by legislation passed by the Congress 50 years ago 
     this month;
       Whereas the Public Health Service has been at the vanguard 
     of health: protecting the public from disease and epidemics 
     and, in conjunction with the States, maintaining public 
     health capacity;
       Whereas the Public Health Service is a world leader in 
     addressing the challenge of promoting and protecting health 
     in America and worldwide;
       Whereas the Public Health Service protects the safety and 
     quality of foods, drugs, and medical devices for all 
     Americans;
       Whereas the Public Health Service provides emergency health 
     services in response to America's natural disasters;
       Whereas the Public Health Service is a world leader in 
     health and medical research;
       Whereas the Public Health Service is a world leader in the 
     effort to immunize children and adults against preventable 
     infectious diseases both in the United States and worldwide;
       Whereas the Public Health service is a world leader in the 
     fight against AIDS and AIDS-related illnesses; and
       Whereas the Public Health Service is comprised of 50,000 
     dedicated professionals: Now, therefore, be it
       Resolved, That July 12, 1994, is designed as ``Public 
     Health Awareness Day'', and the President is authorized and 
     requested to issue a proclamation calling upon the people of 
     the United States to observe that day with appropriate 
     activities.

                          ____________________