[Congressional Record Volume 140, Number 128 (Wednesday, September 14, 1994)]
[House]
[Page H]
From the Congressional Record Online through the Government Printing Office [www.gpo.gov]


[Congressional Record: September 14, 1994]
From the Congressional Record Online via GPO Access [wais.access.gpo.gov]

 
                         ADDITIONAL STATEMENTS

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 S. 2329, THE MOHEGAN NATION OF CONNECTICUT LAND CLAIMS SETTLEMENT ACT 
                                OF 1994

 Mr. McCAIN. Mr. President, I want to take this opportunity to 
make a few comments on S. 2329, the Mohegan Nation of Connecticut Land 
Claims Settlement Act of 1994. First, I want to express my sincere best 
wishes to the Mohegan Nation for every success in all of their future 
endeavors. I also want to congratulate them for their diligence and 
perseverance. They have gone about the process of becoming recognized 
by the Federal Government and resolving their claims against the State 
of Connecticut and the United States in accordance with all applicable 
laws and a healthy respect for the rights of others.
  When S. 2329 was considered by the Committee on Indian Affairs, I 
expressed some serious concerns about the nature of the settlement 
between the Mohegan Nation and the State of Connecticut. After careful 
review and analysis, I am now convinced that the settlement agreement 
reflects a fair bargain reached in good faith by the parties. 
Accordingly, I do not object to the passage of S. 2329.
  However, I do want to call to the attention of my colleagues that 
this settlement includes a compact between the State of Connecticut and 
the Mohegan Nation for the conduct of class III gaming activities under 
the Indian Gaming Regulatory Act. As a condition of the settlement, the 
Mohegan Nation will be obligated to pay the State and the Town of 
Montville tens of millions of dollars. Some of these payments are in 
lieu of taxes which would otherwise have been collected on lands that 
will be transferred to the United States to be held in trust for the 
Mohegan Nation. There is nothing unusual about that aspect of this 
settlement. Other payments will be made primarily for the privilege of 
engaging in gaming. Even these payments are not without precedent in 
Connecticut. What is unprecedented is the magnitude of the payments 
being made in that State by the Pequot Tribe at the present time and 
those that will be made by the Mohegan Nation in the future.
  The Mohegan settlement happens to come along at a time when the 
Committee on Indian Affairs is engaged in an extensive effort to review 
the Indian Gaming Regulatory Act to determine how it can be amended to 
resolve concerns which have been raised by tribal, State and Federal 
officials. Among those concerns is the need for Federal minimum 
standards for the regulation of Indian gaming activities and a 
sufficient Federal regulatory capability to ensure the integrity of 
Indian gaming. Senator Inouye and I have proposed that Indian gaming 
activities should be assessed to pay for the costs of the required 
Federal regulatory activity. Many Indian tribes have told us that the 
proposed assessment would make their gaming activities unprofitable. I 
have no reason to doubt that this may be the case for some of the 
smaller, more marginal operations. However, I must note that the total 
estimated annual cost for Federal regulation of Indian gaming is only a 
small fraction of what is presently paid to the State of Connecticut by 
the Pequot Tribe and what will be paid by the Mohegan Nation under this 
settlement.
  I have to wonder if current tribal and Federal policy is focused on 
the proper objectives. Federal regulation of Indian gaming will benefit 
everyone, including the patrons of Indian gaming, the Indian tribes and 
the States. If we have a few Indian tribes that can afford to pay 
hundreds of millions of dollars to Connecticut for the privilege of 
gaming, then why is it not possible for those tribes and the others 
that are enjoying success in gaming to pay the relatively modest cost 
of Federal regulation so that the more marginal Indian gaming 
operations can be assessed at a rate which will not jeopardize their 
continued operation?
  I raised this concern with several witnesses in the hearings held 
during July by the Committee on Indian Affairs on S. 2230, the Indian 
Gaming Regulatory Act Amendments Act. I have attempted to pose this 
question to the leadership of the Pequot Tribe, but have not had the 
courtesy of their response. I will continue to seek an answer from 
them. I have also raised this concern with the distinguished sponsor of 
S. 2329, Senator Dodd, and have received his assurance that he 
understands my concern and is committed to working with Senator Inouye 
and the Committee on Indian Affairs to find a satisfactory way to 
ensure that the cost of Federal regulation of Indian gaming is funded 
through fair and equitable assessments on Indian gaming operations. I 
hope that the rest of our colleagues will join with us as we attempt to 
resolve this and other concerns associated with Indian gaming 
activities.

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